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2021A FLORIDA MUNICIPALITY 2020 - 2021 Annual Comprehensive Financial Report FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2021 MIAMI SHORES VILLAGE, FLORIDA ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2021 PREPARED BY THE FINANCE DEPARTMENT MIAMI SHORES VILLAGE, FLORIDA TABLE OF CONTENTS PAGE I. INTRODUCTORY SECTION (Unaudited) Letter of Transmittal i-vi GFOA Certificate of Achievement vii List of Elected Officials viii List of Appointed Officials ix Organizational Chart x II. FINANCIAL SECTION Independent Auditors’ Report 1-2 Managements’ Discussion and Analysis (Required Supplementary Information) 3-14 Basic Financial Statements: Government-Wide Financial Statements: Statement of Net Position 15 Statement of Activities 16 Fund Financial Statements: Balance Sheet – Governmental Funds 17 Reconciliation of the Balance Sheet to the Statement of Net Position – Governmental Funds 18 Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds 19 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities 20 Statement of Net Position – Proprietary Funds 21 Statement of Revenues, Expenses, and Changes in Fund Net Position – Proprietary Funds 22 Statement of Cash Flows – Proprietary Funds 23 Statement of Fiduciary Net Position – Fiduciary Funds 24 Statement of Changes in Fiduciary Net Position 25 Notes to the Basic Financial Statements 26-63 Required Supplementary Information: Budgetary Comparison Schedule: General Fund 64-65 Notes to Budgetary Comparison Schedule 66 Schedule of Changes in Village’s Net Pension Liability and Related Ratios – General Employees’ Retirement System (Village’s Reporting) 67 Schedule of Changes in Village’s Net Pension Liability and Related Ratios – General Employees’ Retirement System (Plan’s Reporting) 68 Schedule of Contributions – General Employee’s Retirement System (Village’s Reporting) 69 Schedule of Contributions – General Employee’s Retirement System (Plan’s Reporting) 70 Schedule of Investment Returns – General Employee’s Retirement System 71 Schedule of Changes in Village’s Net Pension Liability and Related Ratios – Police Officers’ Retirement System (Village’s Reporting) 72 Schedule of Changes in Village’s Net Pension Liability and Related Ratios – Police Officers’ Retirement System (Plans’ Reporting) 73 Schedule of Contributions – Police Officer’s Retirement System (Village’s Reporting) 74 Schedule of Contributions – Police Officer’s Retirement System (Plan’s Reporting) 75 Schedule of Investment Returns – Police Officer’s Retirement System 76 MIAMI SHORES VILLAGE, FLORIDA TABLE OF CONTENTS PAGE II. FINANCIAL SECTION (Continued) Required Supplementary Information (Continued): Schedule of Changes in Total OPEB Liability and Related Ratios 77 Supplementary Information: Combining and Individual Financial Statements and Schedules: Combining Balance Sheet – Nonmajor Governmental Funds 78-79 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances – Nonmajor Governmental Funds 80-81 Schedules of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual Nonmajor Governmental Funds 82-83 Internal Service Funds: Combining Statement of Net Position 84 Combining Statement of Revenues, Expenses and Changes in Fund Net Position 85 Combining Statement of Cash Flows 86 Fiduciary Funds: Combining Statement of Fiduciary Net Position – Pension Trust Funds 87 Combining Statement of Changes in Fiduciary Net Position – Pension Trust Funds 88 III. STATISTICAL SECTION (Unaudited) Net Position by Component 89 Changes in Net Position 90-91 Fund Balances for Governmental Funds 92 Changes in Fund Balances of Governmental Funds 93 General Governmental and Excise Tax Revenues by Source 94 Assessed Value and Actual Value of Taxable Property 95 Property Tax Rates Direct and Overlapping Governments 96 Principal Property Taxpayers – Current Year and Nine Years Ago 97 Operating Property Tax Levies and Collections 98 Ratios of Outstanding Debt By Type 99 Direct and Overlapping Governmental Activities Debt 100 Legal Debt Margin Information 101 Demographic and Economic Statistics 102 Principal Employers Located in Miami Dade County – Current Year and Nine Years Ago 103 Village Employees by Function/Program 104 Operating Indicators by Function 105 Capital Asset Statistics by Function/Program 106 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 107 Independent Auditors’ Report on Compliance for the Major Program and on Internal Control Over Compliance Required by Uniform Guidance 108-109 Schedule of Expenditures of Federal Awards 110 Notes to Schedule of Expenditures of Federal Awards 111 Schedule of Findings and Questioned Costs 112 Management Letter in Accordance with the Rules of the Auditor General of the State of Florida 113-114 Independent Accountants’ Report on Compliance Pursuant to Section 218.415 Florida Statutes 115 INTRODUCTORY SECTION MIAMI SHORES, FLORIDA 33138-2382 TELEPHONE: (305) 795-2207 FAX: [305) 756-8972 April 28, 2022 The Mayor and Members of the Village Council 10050 Northeast Second Avenue Miami Shores, Florida 33138 Subject: FY 2020-21 Esmond H. Scolt Village Manager Annual Comprehensive financial Report To the Mayor and Members of the Village Council: In compliance with Florida State Statute Chapter § 11 .45, Chapter § 10.550 of the Rules of the Auditor General, and Chapter 34(3) of the Miami Shores Village Code of Ordinances, we are pleased to submit for your review and consideration the Miami Shores Village Annual Comprehensive Financial Report for the fiscal year ended September 30, 2020. The financial statements included in this report conform to generally accepted accounting principles in the United States of America ("GAAP") as prescribed by the Governmental Accounting Standards Board ("GASB"). The responsibility for both the accuracy of the presented data and the completeness and fairness of the presentation, including all disclosures, rests with the Village. This report consists of management's representations concerning the financial condition of Miami Shores Village ["The Village"). Consequently, management assumes full responsibility for the complete presentation, reliability, and accuracy of all of the information presented in this report. To provide a reasonable basis for making these representations, the Village's management has established a comprehensive internal control framework that is designed both to protect the government's assets from loss, theft or misuse and to compile sufficient reliable information for the preparation of the Village's financial statements in conformance with accounting principles generally accepted in the United States. Because the cost of internal controls should not outweigh their benefits, the Village's comprehensive framework of internal controls have been designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatement. As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects. The financial statements have been audited by Caballero Fierman Llerena & Garcia, LLP, Certified Public Accountants. The independent auditor has issued an unmodified opinion that this report fairly represents the financial position of the Village in conformity with GAAP. Their audit was conducted in accordance with auditing standards generally accepted in the United States, Government Auditing Standards issued by the Comptroller General of the United States and the Rules of the Auditor General, State of Florida. The goal of the independent auditor is to provide -i - FY2020-21 Financial Report April 28, 2022 -ii- reasonable assurance that the financial statements of the Village for the fiscal year ended September 30, 2021 are free of material misstatements. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. The independent auditor concluded, based upon the audit, that there was a reasonable basis for rendering an unmodified opinion that the financial statements of Miami Shores Village, for the fiscal year ended September 30, 2021, are fairly presented in conformity with generally accepted accounting principles (GAAP). The contents of the ACFR have been influenced by compliance with GASB pronouncements, including Statement 34 that requires the preparation of government-wide financial statements on a full accrual basis of accounting for all funds as well as Management’s Discussion and Analysis (MD&A). The MD&A can be found immediately following the independent auditors’ report. PROFILE OF THE GOVERNMENT Miami Shores Village, a Florida municipal corporation incorporated in 1932, is located in Northeast Miami-Dade County. The Village has a year-round population estimated at 10,817 residents living within the 2.5 square mile jurisdiction. The Village generally begins at Biscayne Bay on the east and goes west to Northwest Second Avenue. The north and south boundaries are generally 115 th Street and 91st Street respectively. The Village is a residential-based community with two (2) commercial districts located on Second Avenue and Biscayne Boulevard. Despite its close proximity to Downtown Miami, the Village maintains a suburban feel. With limited commercial presence, the need for new growth through redevelopment will be essential to the Village’s future. Wealth levels in the Village are above average, with per capita income at $47,236 or 144% of the state, and median household income at $125,202 or 217% of the state. Operating under a Council-Manager form of government, the Council consists of five members elected at large. The Mayor is chosen by each of the newly formed councils. Historically, the individual receiving the highest number of votes during the election is chosen as the Mayor and the Vice-Mayor has received the second highest. Both the Mayor and Vice-Mayor serve four (4) year terms, two as mayor/vice-mayor and two as regular council members. The Village Council is responsible for the selection and appointment of the Village Manager, Village Clerk and Village Attorney. The Village Manager is responsible for engaging all department heads and their subordinates. Miami Shores Village provides a full range of municipal services including recreation and culture, public safety through the police, public works and general administrative services for its residents and businesses. For the fiscal year ended September 30, 2021, no legally separate authorities or agencies operated under the auspices of the Village; therefore, no additional financial information will be incorporated into these statements. FACTORS AFFECTING FINANCIAL CONDITIONS The information presented in the Village’s financial statements primarily focuses on the financial position at the end of each fiscal year as measured by existing resources and claims against those resources. To better understand the Village’s financial condition, readers should focus on both FY2020-21 Financial Report April 28, 2022 -iii- existing and future resources and potential claims (or liabilities) against those resources. This broader concept is used to assess the financial condition of the Village, reflecting the current financial position as well as the prospects that today’s financial condition will improve or deteriorate. To achieve this objective, the Village uses a wide-range of information including local economic conditions and outlook; long-term debt management; capital construction and investments; cash management / investments; and, of course, risk controls. ECONOMIC CONDITION AND OUTLOOK Property values in the Village are expected to continue to increase. Although substantially built- out, the Village is experiencing a significant amount of residential renovation and teardown/rebuild activity. New construction, additions, and rehabilitative improvements continue with a net new taxable value of $3.9 million reflected in fiscal year 2021. Building Permits continue to be issued at an all-time high. It is anticipated that property values will continue to increase due to the desirability of the area and the close proximity to Greater Downtown Miami. The Village experienced an increase in assessed property values of 6.8% for fiscal year 2020 and 5.1% for fiscal year 2021. It is anticipated that this trend will continue, but at slightly lower increases in property values. Management continues to make capital improvements that will maintain and further enhance the lifestyle of the residents and improve services. During fiscal year 2021, the Village began to undertake capital projects that had been delayed due to the COVID-19 pandemic. These capital projects will continue to provide the high level of services that have become a hallmark of the community. Management continues to control costs by closely monitoring purchasing procedures and levels of staffing. Due to these efforts the general fund unassigned fund balance for fiscal year 2021 is $9.7 million. Included in the $9.7 million of general fund unassigned fund balance is a pending receivable of $3.4 million awaiting FEMA resolution. This surplus will enable the Village to continue to provide the same level of services to the residents in the upcoming fiscal years, address continuing capital improvement requirements, and to fund any Hurricane IRMA expenses not recovered from FEMA. The Village maintains a strong financial position with adequate reserve levels, modest tax base with above average socioeconomic indices, and a manageable debt profile. The stable financial operations are a result of management’s commitment to conservative budgeting and controlling costs. FINANCIAL INFORMATION Accounting Control Management is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the Village are protected from loss, theft or misuse, and to ensure that adequate accounting data is compiled to allow for the preparation of financial statements in conformity with generally accepted accounting principles in the United States of America. The internal control structure is designed to provide reasonable, but not absolute, assurance that these objectives are met. The concept of reasonable assurance recognizes that (1) the cost of a control should not exceed the benefits likely to be derived and (2) the valuation of costs and benefits FY2020-21 Financial Report April 28, 2022 -iv- requires estimates and judgments by management. As a recipient of federal, state and local financial assistance, the government is also responsible for ensuring that an adequate internal control structure is in place to ensure and document compliance with applicable laws and regulations related to these programs. This internal control structure is subject to periodic evaluation by management. In addition, the Village maintains extensive budgetary controls. The objective of these controls is to ensure compliance with policy and implementation procedures embodied in the annual appropriated budget approved by Village Council. The level of budgetary control (i.e. the level at which expenditures cannot legally exceed the appropriated amount) is the department level within each fund. The Village also maintains an encumbrance accounting system. The Village’s accounting system is organized on a fund basis. A fund is defined as an independent fiscal and accounting entity with a self-balancing set of accounts. The types of funds used are generally determined by the Village Council, upon the recommendations of the Village Manager and the Finance Director, which are based upon established and accepted accounting policies and procedures as well as the number of funds required. Budgetary Control Florida State Statute §200.065 requires that all municipal governments prepare, approve, adopt and execute an annual budget for such funds as may be required by law or by sound fiscal practices. In compliance with this Statute as well as other state regulatory items, the Village adopts an annual operating budget into which funds are either formally appropriated by resolution or non-appropriated in nature, depending upon the fund (i.e. – general, special revenue, debt service, enterprise, internal service or trust funds). However, in practice, all funds that have regularly occurring expenses, receive annual budgets and corresponding appropriations. The annual budget serves as a foundation for the financial planning, guidance and control of the Village. Funds which require legal appropriations cannot exceed their original and amended budgets. All departments are required to annually submit requests for appropriations to the Village Manager by mid-May of each year. The Village Manager then uses those requests as the base from which the annual operating and capital budgets are developed. The budget is presented to the Village Council following the release of the tentatively assessed property values in early July of each year. A workshop is held in July during which council members are free to address department staff with general and specific issues proposed in the budget. Following the summer workshop, the Council adopts a resolution which sets the tentative millage rates which are subsequently sent to the County using Florida Form DR420 for inclusion on the Proposed Tax Bills. Two public hearings are held in September of each year during which members of the public are offered the opportunity to provide insight and solicit information regarding the operations of their municipality. After the second public hearing, resolutions presenting the final operating and debt service millage rates, along with corresponding budgets for the fiscal year, are subsequently adopted by the Village Council. The annual budget is adopted at the fund and general fund department level. Line-item transfers are permitted with the approval of the Finance Director and Village Manager; however, changes to the bottom line of department or fund totals require council approval and are executed by resolution. Budget to actual comparisons are provided in this report for each individual FY2020-21 Financial Report April 28, 2022 -v- governmental fund for which an appropriated annual budget has been adopted. As shown by the statements and schedules included in the financial section of this report, the Village continues to meet its responsibility for sound financial management. LONG-TERM FINANCIAL PLANNING Management maintains financial stability with fiscal management controls by constantly reviewing and monitoring staff levels, and by comparing budget appropriations to actual expenditures, and estimated revenues to actual revenues. The Village maintains a level of revenue sufficient to meet operating expenditures. As the world, the country, the state, the county and the Village recover from the COVID-19 pandemic, the Village continues to monitor the situation along with other factors and events in the world that impact the finances of the Village. The Village strives to serve our residents and ensure the quality of life style our residents currently enjoy is maintained. The Village maintains a strong fund balance in order to address many of these issues. Although the Village is a highly desirable place to live, management has plans to continue making improvements to our Community. With the development of a strategic plan, the Village will have a coherent and cohesive plan as to how the Village should progress in the coming years. The strategic plan will be completed in FY22 and is the result of the work of the Village and the community at large. The library’s expansion of the children’s section is to be completed in FY22. A drainage project in Shores Estates, consisting of a pump station and new piping, is underway using grant funding from FEMA. A septic to sewer project in Shores Estates using Florida Department of Environmental Protection grant funds has begun. The American Rescue Plan Act of 2021, ARPA funds, that the Village received and will receive are in the planning stages. Sidewalks throughout the Village as well as studies for stormwater improvements and septic to sewer conversions are the main thoughts of use of the ARPA funds at this point. Once the studies for stormwater improvements and septic to sewer conversions are complete, it will enable the Village to determine which areas to focus on first for the upcoming projects and get them to a “shovel ready” status. AWARDS and ACKNOWLEDGEMENTS The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to Miami Shores Village for its Annual Comprehensive Financial Report for the fiscal year ended September 30, 2020. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized Annual Comprehensive Financial Report. This report must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe that our current comprehensive annual report continues to meet the Certificate of Achievement Program’s requirements and we are submitting it to the GFOA to determine its eligibility for another certificate. The preparation of this report would not have been possible without the efficient and dedicated services of the entire staff of the Finance Department. Credit must also be given to the members -vii- Mayor Sandra Harris Vice Mayor Daniel Marinberg Councilmember Alice Burch Councilmember Crystal Wagar Councilmember Katia Saint Fleur MIAMI SHORES V ILLAGE, FLORIDA LIST OF ELECTED OFFICIALS SEPTEMBER 30, 2021 -viii- MIAMI SHORES VILLAGE, FLORIDA LIST OF APPOINTED OFFICIALS SEPTEMBER 30, 2021 APPOINTED OFFICIALS Village Manager....................................................................................................Esmond K. Scott 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 ...............................................................................................Chris Miranda Recreation Director...................................................................................................Angela Dorney VILLAGE AUDITORS Caballero Fierman/OHUHQD *DUFLD, LLP Accountants and Advisors -ix- MIAMI SHORES VILLAGE, FLORIDA ORGANIZATION CHART SEPTEMBER 30, 2021 MAYOR & COUNCIL MAYOR - SANDRA HARRIS VICE MAYOR - DANIEL MARINBERG COUNCILMEMBER - ALICE BURCH COUNCILMEMBER - CRYSTAL WAGAR COUNCILMEMBER - KATIA SAINT FLEUR VILLAGE CLERK YSABELY RODRIGUEZ,CMC VILLAGE ATTORNEY RICHARD SARAFAN, ESQ. VILLAGE MANAGER ESMOND K. SCOTT BUILDING DIRECTOR ISMAEL NARANJO FINANCE DIRECTOR HOLLY HUGDAHL, CPA PLANNING & ZONING DIRECTOR TRAVIS KENDALL PUBLIC WORKS DIRECTOR CHRIS MIRANDA CHIEF OF POLICE KEVIN LYSTAD RECREATION DIRECTOR ANGELA DORNEY CODE COMPLIANCE DIRECTOR LAZARO REMOND DIRECTOR OF LIBRARY SERVICES MICHELLE BROWN -x- 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 year fiscal year ended September 30, 2021, 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, 2021, and the respective changes in financial position and, where applicable, cash flows thereof for the fiscal year then ended in accordance with accounting principles generally accepted in the United States of America. 2 8950 SW 74th Court I Suite 1210 I Miami, FL 33156 T: 305.662.7272 I F: 305.662.4266 I CFLGCPA.COM Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis and budgetary comparison schedules, Pension, and Other Post-Employment Benefits Schedules on pages 3–14 and 64–77 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Village’s basic financial statements. The introductory section, combining and individual nonmajor fund financial statements, and statistical section are presented for purposes of additional analysis and are not a required part of the basic financial statements. The schedule of expenditures of federal awards is presented for purposes of additional analysis as required by Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, and is also not a required part of the basic financial statements. The combining and individual nonmajor fund financial statements and the schedule of expenditures of federal awards (the “SEFA”) 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 the SEFA 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 April 28, 2022, 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 solely 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 the effectiveness of the Village’s 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 April 28, 2022 MANAGEMENT’S DISCUSSION AND ANALYSIS (Required Supplementary Information) 3 Management’s Discussion and Analysis As management of Miami Shores Village, Florida (“the Village”), we offer the Village’s financial statements in this narrative overview and analysis of the financial activities of Miami Shores Village for the fiscal year ended September 30, 2021. We encourage readers to consider the information presented here in conjunction with additional information that is furnished in our letter of transmittal, which can be found on pages i to vi of this report. This discussion and analysis is designed to (a) assist the reader in focusing on significant financial issues; (b) provide an overview of the Village’s financial activity; (c) identify changes in the Village’s financial position (its ability to address the next and subsequent year challenges); (d) identify any material deviations from the financial plan (the approved budget); and (e) identify individual fund issues or concerns. The information contained within this section should be considered only a part of a greater whole. Financial Highlights for Fiscal Year 2021 At September 30, 2021, Miami Shores Village assets and deferred outflows exceeded its liabilities and deferred inflows by $36 million (net position). Of this amount, $21.6 million was invested in capital assets, an increase of $399 thousand compared with the prior year. Additionally, $7 million was restricted by law, agreements, and debt covenants or for capital projects. The Village had an unrestricted net position of $7.4 million at September 30, 2021, an increase of $1.8 million or a 33% increase as compared with the prior year. The increase in unrestricted net position was related to cancelled programs, reduced attendance, unfilled positions, and the re-assignment of budgeted personnel due to the COVID-19 pandemic. The Village was reimbursed through CARES for the re-assigned personnel. During fiscal year 2021, total net position increased by $4.8 million, from $31.2 million in FY2020 to $36 million in FY2021. Of this increase, $4.4 million was an increase in governmental activities and an increase of $330 thousand in business-type activities. At September 30, 2021, Miami Shores Village’s governmental funds had fund balances totaling $14.9 million. Of the total fund balance, approximately $8.5 million or 57% was unassigned and $1.3 million or 8.5% was committed for future capital projects and encumbrances. The restricted fund balance of approximately $4.1 million, or 28%, is related to funds restricted by the contributing agency. The nonspendable fund balance of approximately $19 thousand is related to prepaid items. The assigned fund balance of $931 thousand or 6% is assigned for FY22 capital improvements. The net change in fund balances during the year was an increase of $3.1 million indicative of the financial stability of the Village. Much of this change was due to budgeted expenditures amounting to less than anticipated and the re-assignment of budgeted personnel related to the COVID-19 pandemic which were reimbursed. The General Fund’s fund balance increased by $1.3 million for the fiscal year ended September 30, 2021. The increase in unrestricted net position was related to cancelled programs, reduced program attendance, unfilled positions, and the re-assignment of budgeted personnel due to the COVID-19 pandemic. Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction to the basic financial statements of Miami Shores Village. The Village’s basic financial statements are comprised of three components: 1) government-wide financial statements; 2) individual fund financial statements; and, 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves. 4 Government-wide financial statements. The government-wide financial statements are designed to provide readers with a broad overview of the financial activity of Miami Shores Village, in a manner similar to a private-sector business. The Statement of Net Position presents information on all of the assets and deferred outflows and liabilities and deferred inflows of Miami Shores Village, with the difference reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the Village is improving or deteriorating. The Statement of Activities presents information showing how the government’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave). Both of the government-wide financial statements distinguish functions of Miami Shores Village that are principally supported by taxes and intergovernmental revenues (governmental activities) as well as other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of Miami Shores Village include general government, public safety, public works, building, planning, zoning, code compliance, parks and recreation. The business-type activities of the Village include Solid Waste, Stormwater, and Water and Wastewater operations. The government-wide financial statements may be found on pages 13 to 14 of this report. Fund financial statements. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. Miami Shores Village, like other local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of Miami Shores Village can be divided into three categories: governmental funds, proprietary funds and fiduciary funds. Governmental funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government- wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government’s near-term cash flow and financing requirements. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government’s near-term financing decisions and the impact on short term cash flow requirements to meet basic on-going operations. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures and changes in fund balance provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. Miami Shores Village maintains eleven (11) individual governmental funds. Information is presented separately in the governmental funds balance sheet and in the governmental funds statement of revenues, expenditures and changes in fund balance for the general fund and the two major funds, the police forfeiture fund and the grant fund. Data from the other eight governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these non-major governmental funds is provided in the form of combining statements elsewhere in this report. The basic governmental fund financial statements may be found on pages 15 to 18 of this report. 5 Proprietary funds. Miami Shores Village maintains three proprietary or enterprise funds. Enterprise Funds are used to report the same functions presented as business-type activities in the government-wide financial statements. Miami Shores uses enterprise funds to account for its Solid Waste, Stormwater, and Water & Wastewater operations. Internal service funds provide for an accounting method whereby the organization can accumulate and allocate costs internally among the other user divisions. The Village uses internal service funds to account for its risk management costs as well as its fleet operation. Because both of these services predominantly benefit governmental rather than business-type functions, they have been included within governmental activities in the government-wide financial statements. Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for the Village’s Solid Waste, Stormwater, and Water & Wastewater operations. The Solid Waste Fund is considered to be a major fund of the Village. Additionally, the Village segregates the financial reporting of both internal service funds to better distinguish the costs of each function. The basic proprietary fund financial statements may be found on pages 19 to 21 of this report. Fiduciary funds. Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government-wide financial statements because the resources of those funds are not available to support the Village’s own programs. The accounting used for fiduciary funds is much like that used for proprietary funds. The basic fiduciary fund financial statements may be found on pages 22 to 23 of this report. Notes to the financial statements. The notes provide additional information that is essential to fully understand the data provided in the government-wide and fund financial statements. The notes to the financial statements may be found on pages 24 to 61 of this report. Other information. In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the progress in funding its obligations to provide pension benefits to the employees of Miami Shores Village. Required supplementary information may be found on pages 62 to 75 of this report. The combining statements referred to earlier in connection with non-major governmental funds and internal service funds are presented immediately following the required supplementary information. Combining and individual fund statements and schedules may be found on pages 76 to 86 of this report. Government-wide Financial Analysis The difference between a government’s assets and deferred outflows and its liabilities and deferred inflows is its net position. The Village’s net position is summarized on the following page: Net position may be used to assess the financial position of the Village. The Village’s combined net position as of September 30, 2021 was $36 million. Approximately 60%, or $21.6 million, of the Village’s net position represents net investment in capital assets. These assets include land, buildings, machinery and equipment, and infrastructure and are not available for future spending. Additionally, $7 million is restricted net position and is subject to external restrictions on how it may be spent. At September 30, 2021, Miami Shores Village had an unrestricted net position of $7.4 million. At the end of the current fiscal year, Miami Shores Village is able to report positive balances in all three categories of net position for the government as a whole, as well as, the governmental funds and business-type activities. 6 Table 1 Miami Shores Village Summary of Net Position (in thousands) Total percentage change Governmental activities Business-type activities Total primary governmental 2021 2020 2021 2020 2021 2020 2021-2020 Current and other assets 18,567 15,488 6,851 6,738 25,418 22,226 14.36% Capital assets 23,031 23,035 2,587 2,516 25,618 25,551 0.26% Total assets 41,598 38,523 9,438 9,254 51,036 47,777 6.82% Deferred outflows related to pension & OPEB 2,890 1,501 124 70 3,014 1,571 91.85% Total deferred outflows of resources 2,890 1,501 124 70 3,014 1,571 91.85% Long-term liabilities outstanding 10,604 10,221 3,986 4,011 14,590 14,232 2.52% Other liabilities 1,171 1,315 1,174 1,223 2,345 2,538 -7.60% Total liabilities 11,775 11,536 5,160 5,234 16,935 16,770 0.98% Deferred inflows related to BTR, pension & OPEB 1,122 1,312 23 41 1,145 1,353 -15.37% Total deferred inflows of resources 1,122 1,312 23 41 1,145 1,353 -15.37% Net investment in capital assets, 19,027 18,699 2,587 2,516 21,614 21,215 1.88% Restricted 6,688 4,433 269 - 6,957 4,433 56.94% Unrestricted 5,876 4,044 1,523 1,533 7,399 5,577 32.67% Total net position 31,591 27,176 4,379 4,049 35,970 31,225 15.20% Governmental activities. Financial activities for the fiscal year are reported on the following page. Key indicators, including revenues and expenditures by category are presented herein for review: Ending net position in governmental activities increased $4.4 million or 16% during FY2021. The increase in ending net position is attributable to departmental savings associated with unfilled positions, conservative spending and the reimbursement the Village received for the re-assignment of budgeted personnel due to the COVID-19 pandemic. Additional contributory factors included the cancellation of events, limited programs and reduced program size. 7 Table 2 Miami Shores Village Changes in Net Position (in thousands) Total percentage change Governmental activities Business-type activities Total primary government 2021 2020 2021 2020 2021 2020 2021-2020 Revenues: Program revenues: Charges for services 5,532 5,397 3,848 3,430 9,380 8,827 6.26% Operating grants & Contributions 740 717 - - 740 717 3.21% Capital grants and Contributions - - - - - - - General Revenues: Property taxes 10,015 9,673 - - 10,015 9,673 3.54% Other taxes 2,233 2,107 - - 2,233 2,107 5.98% Intergovernmental revenues 4,201 1,518 - - 4,201 1,518 176.75% Investment income - unrestricted 27 128 2 12 29 140 -79.29% Miscellaneous 421 675 1 - 422 675 -37.48% Special item - gain (loss) on sale of asset (145) - - - (145) - - Total revenues 23,024 20,215 3,851 3,442 26,875 23,657 13.60% Expenses: General government 4,123 3,696 - - 4,123 3,696 11.55% Public safety 7,741 7,230 - - 7,741 7,230 7.07% Public works 3,860 4,401 - - 3,860 4,401 -12.29% Solid Waste / Stormwater / Water & Wastewater - - 3,185 3,175 3,185 3,175 0.31% Culture & Recreation 3,106 2,639 - - 3,106 2,639 17.70% Interest on Long-term Debt 115 124 - - 115 124 -7.26% Total expenses 18,945 18,090 3,185 3,175 22,130 21,265 4.07% Increase(decrease) in net position before Transfers 4,079 2,125 666 267 4,745 2,392 98.37% Transfers 336 414 (336) (414) - - - Increase(decrease) in net position 4,415 2,539 330 (147) 4,745 2,392 98.37% Beginning net position 27,176 24,637 4,049 4,196 31,225 28,833 8.30% Prior period adjustment - - - - - - - Ending net position 31,591 27,176 4,379 4,049 35,970 31,225 15.20% 8 Figure A-1 Expenses and Program Revenues – Governmental Activities For the Fiscal Year Ended September 30, 2021 Figure A-2 Revenues by Source – Governmental Activities For the Fiscal Year Ended September 30, 2021 Business-type activities. The Miami Shores Village major business-type activities include the following enterprise funds:  Solid Waste Fund  Stormwater Fund  Water & Wastewater Fund $- $1,000,000.00 $2,000,000.00 $3,000,000.00 $4,000,000.00 $5,000,000.00 $6,000,000.00 $7,000,000.00 $8,000,000.00 Revenues Expenses General government Public safety Public Works Culture/recreation Interest on long-term debt Property Taxes 44% Charges for Services 24% Investment Income 0% Public Service Taxes 10% Intergovernmental 19% Other 3% 9 Net position of business-type activities increased by approximately $330 thousand. This increase is due to operating expenses not incurred. The bar graph below summarizes the expenses and program revenues of the business-type activities. Figure A-3 Expenses and Program Revenues – Business-type Activities For the Fiscal Year ended September 30, 2021 Financial Analysis of the Government’s Funds As noted earlier, Miami Shores Village uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Governmental funds. The focus of the governmental funds for Miami Shores Village is to provide information on near-term inflows, outflows and balances of spendable resources. Such information is useful in assessing the Village’s financing requirements. In particular, the unassigned fund balance may serve as a useful indicator of the government’s net resources available for spending at the end of a fiscal year. As of the end of the current fiscal year, the governmental funds for Miami Shores Village reported combined ending fund balances of $14.9 million. Of this amount, $8.5 million reflects unassigned fund balance, which is available for spending at the government’s discretion. The remainder of the fund balance is nonspendable, assigned, committed or restricted to indicate that it is not available for new spending as those dollars have already been 1) assigned to spend $931 thousand on capital improvements in FY22 from the budget adopted in FY22, 2)committed to liquidate contracts or encumbered fiscal obligations (outstanding purchase orders) valued at $1.3 million, 3) restricted for funds limited by the contributing agency of $4.1 million and 4) nonspendable for funds used to account for amounts which cannot currently be spent, such as prepaid expenses of $19 thousand. The General Fund is the primary operating fund of the Village. At the end of the current fiscal year, the unassigned fund balance for the General Fund was $9.7 million as compared with $9.3 million in the prior year. The Village's General Fund unassigned balance increased by $454 thousand during the 2021 fiscal year. This can be attributed to effects of the COVID-19 pandemic during which the Village was reimbursed for personnel re-assigned to COVID related activities. As a result of the pandemic, events and programs were cancelled or reduced during FY21. Unfilled positions and conservative spending also contributed to the increase in the unassigned fund balance. The Village has two other major funds, Police Forfeiture and the Grant Fund. $- $500,000.00 $1,000,000.00 $1,500,000.00 $2,000,000.00 $2,500,000.00 $3,000,000.00 $3,500,000.00 Solid Waste Stormwater Water & Wastewater Program Revenue Expenses 10 The Police Forfeiture Fund accumulates proceeds received from forfeitures related to ongoing investigations. The Village has one officer assigned to the federal program. The expenditure of these funds is restricted by strict governmental rules and approval of the Village Council. The fund balance of $739 thousand will be used for future projects for the Police Department. The Grant Fund accounts for the use of specific designated resources related to grant programs. The negative unassigned fund balance of ($1,198,175) is due to the reimbursement amount that is pending FEMA approval for Hurricane IRMA. Proprietary funds. The Village’s proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail.  Unrestricted net position in the Solid Waste Fund at the end of the fiscal year totaled $252 thousand. Unrestricted net position will be used to fund future purchases of capital assets.  Unrestricted net position in the Stormwater Fund at the end of the fiscal year totaled $1.4 million. Unrestricted net position is maintained to fund future projects.  Unrestricted net position in the Water & Wastewater Fund at the end of the fiscal year was a negative $95 thousand. It is anticipated that the unrestricted negative net position will be funded by future assessments. General Fund Budgetary Highlights The Village adopts annual budgets by fund, general fund department and line item in compliance with Florida State Statute Section 200.065 (commonly referred to as the Truth-in Millage Legislation). The law requires municipal organizations to prepare and adopt annual operating budgets for the General, Special Revenue and Debt Service Funds following uniform time frames related to property tax levies. The balanced budgets may be revised throughout the year. The Village’s code allows for department level budget transfers without council approval; however, department and fund total changes require Council- approved budget amendments adopted by resolution. The Village’s policy is to adopt the budget following the second public hearing of each fiscal year, held in September for an October 1st year. The Village has also adopted a policy which provides for the reappropriation of committed fund balance for encumbrances. This amendment is usually adopted as the first budget amendment of each fiscal year and is normally presented at the first meeting in November of each fiscal year. Additional budget amendments may be presented to council at any time during the fiscal year. Over the course of the year, the Village amended the General Fund budget three times. The budget amendments fall into two categories: (1) Amendments are approved for rollovers related to prior year encumbrances; and (2) supplemental appropriations to provide appropriations for various other needs which have arisen since the adoption of the budget. With these adjustments, disbursements were approximately $1 million below final budgeted amounts. Savings were realized in general government, $203 thousand, public safety, $284 thousand, public works, $109 thousand, and culture and recreation, $368 thousand. These savings in general government costs and various departmental costs were due to unfilled positions, conservative spending and the re-assignment of budgeted personnel that were reassigned and reimbursed due to the COVID-19 pandemic. Additionally, savings in the General Fund are due to the COVID-19 pandemic effecting anticipated events and programs; cancelling them or reducing the size. The fiscal year 2021 final amended budget was $16.6 million, an increase of .93% over the original General Fund budget of $16.4 million. Correspondingly, the Consumer Price Index (or inflation index) from the U.S. Bureau of Labor Statistics – All Urban Consumers for the past year was 5.4%. The final Adopted Budget is balanced with revenues of $16 million, $400 thousand in operating transfers from the Solid Waste Fund and the Stormwater Fund, and a $152 thousand appropriation from the General Fund Balance. 11 Capital Asset and Debt Administration Capital Assets. Miami Shores Village’s investment in capital assets for its governmental and business-type activities as of September 30, 2021 amounts to $25.6 million (net of accumulated depreciation). The investment in capital assets includes Village-owned buildings, equipment and other infrastructure (streets, sidewalks, easements, right-of-ways). The value of capital investments includes the cost of the Doctors’ Charter School of Miami Shores. The following table summarizes the components of the Village’s investments in capital assets. Miami Shores Village Capital Assets as of September 30, 2021 and 2020 (net of accumulated depreciation) Governmental Activities Business-Type Activities Total Classification 2021 2020 2021 2020 2021 2020 Land $ 2,386,158 $ 2,386,158 $ - $ - $ 2,386,158 $ 2,386,158 Construction in progress 803,951 2,155,535 108,149 - 912,100 2,155,535 Building 8,948,248 9,179,339 - - 8,948,248 9,179,339 Infrastructure 7,216,195 5,944,639 1,495,525 1,567,880 8,711,720 7,512,519 Machinery and equipment 3,112,145 2,733,864 983,130 947,856 4,095,275 3,681,720 Intangible 563,971 635,307 - - 563,971 635,307 Totals $23,030,668 $ 23,034,842 $2,586,804 $ 2,515,736 $25,617,472 $ 25,550,578 Additional information on Miami Shores Village’s capital assets may be found in Note 6 on Pages 39 to 40 of this report. Long-term Liabilities. At September 30, 2021, Miami Shores Village had $15 million in long-term liabilities, which are summarized in the schedule below. The increase of $298 thousand is attributable to a decrease in annual bond payments of $391 thousand, an increase in OPEB liability of $35 thousand, compensated absences of $23 thousand and net pension liability of $631 thousand. Miami Shores Village Outstanding Long-term Liabilities as of September 30, 2021 and 2020 Governmental Activities Business-type activities Total Primary Government 2021 2020 2021 2020 2021 2020 General obligation bonds $4,003,900 $4,335,300 $ - $ - $4,003,900 $4,335,300 Other debt - - 3,700,000 3,760,000 3,700,000 3,760,000 Total bonds and notes payable 4,003,900 4,335,300 3,700,000 3,760,000 7,703,900 8,095,300 Other liabilities: OPEB liability 551,929 517,453 19,632 18,777 571,561 536,230 Estimated insurance claims payable - - - - - - Compensated absences 863,251 781,240 73,467 132,771 936,718 914,011 Net pension liability 5,537,848 4,924,745 211,520 192,869 5,749,368 5,117,614 Totals $10,956,928 $10,558,738 $4,004,619 $4,104,417 $14,961,547 $14,663,155 12 Additional information on the Village’s long-term debt may be found in Note 7 on Pages 40 to 42 of this report. Economic Factors and Next Year’s Budgets and Rates Miami Shores Village is a single-family, residential community. As such, standard economic indicators used to determine the overall health of a community are slightly different for Miami Shores. Since the Village’s “business community” is restricted to a six-block area on Second Avenue and isolated pockets of business entities on Biscayne Boulevard, the Village must monitor property values and other residentially-related trends to determine the health and vitality of the community. Quality recreational activities, including the Village’s first-class aquatics facility, support the residents’ requirement for high standards and outstanding recreation and leisure activities. This, along with its own public safety department, provides a higher standard of living than that which is found in surrounding municipalities. The State of Florida, by constitution, does not have a state personal income tax and therefore, the State operates primarily using sales, gasoline and corporate income taxes. Local governments (cities, counties, and school boards) primarily rely upon property taxes and a limited array of permitted other taxes (sales, telecommunication, gasoline, utilities services, etc.) and fees (franchise, building permits, occupational licenses, etc.) for funding of their governmental activities. In addition, there are a number of state-shared revenues and recurring and non-recurring (one-time) grants from both the state and federal governments. On January 29, 2008, the Florida electorate approved an amendment to the Florida Constitution relative to property taxation. This amendment (referred to as Amendment 1) was placed on the ballot by the Florida legislature at a special session held in October 2007. With respect to homestead property, Amendment 1 increases the $25,000 homestead exemption by another $25,000 for the portion of assessed property value exceeding $50,000, except for school district taxes. Amendment 1 also allows property owners to transfer (make portable) up to $500,000 of their Save Our Homes benefits to their next homestead when they move. Save Our Homes became effective in 1995 and limits (caps) the annual increase in assessed value for homestead property to three percent (3%) or the percentage change in the Consumer Price Index, whichever is less. With respect to non-homestead property, Amendment 1 limits (caps) the annual increase in assessed value for non-homestead property (businesses, industrial property, rental property, second homes, etc.) to ten percent (10%), except for school district taxes. The Amendment also provides a $25,000 exemption for tangible personal property. Amendment 1 became effective on October 1, 2008 with the exception of the ten percent (10%) assessment cap on non-homestead property which became effective on January 1, 2009. Additional tax relief bills, which could further limit the extent to which municipalities can levy taxes, continue to be introduced by the state legislature. Actual taxes levied by the Village in 2021 reflected an increase of $481 thousand, precipitated by an increase in property values of $61 million or 5.1% in property values as compared with 2020. Based on the current real estate market within the Village, it is anticipated that the Village will continue to experience an increase in assessed values due to the Village’s desirability and the close location to Greater Downtown Miami. During the current fiscal year, unassigned fund balance in the General Fund was $9.7 million, an increase of $454 thousand compared to the unreserved fund balance in 2020 of $9.3 million. This fund balance of $9.7 million is contingent upon the $3.4 million accounts receivable attributable to Hurricane IRMA. The balance of $6.3 million is approximately equal to 4.7 months of General Fund operating expenditures. Even though fair market property values are expected to increase; assessed property values are limited by the “Save Our Homes” benefits. This limits the increase in property tax revenue even when property values are increasing. Expenditures such as payroll, personnel benefits and operating will continue to increase given the economic impact of the COVID-19 pandemic and other world events. Fiscal year 2022 budgeted 13 expenditures and transfers are expected to be $17.2 million, or 4.8%, more than the fiscal year 2021 budget of $16.4 million. The Village, as can be shown in the following graph, is maintaining its unassigned fund balance so that a portion of unassigned fund balance will be available to preclude or moderate reductions in revenues related to a COVID-19 pandemic resurgence and/or any other world crisis, fund capital improvements, or be available to defray the outstanding costs associated with hurricanes or other natural disasters. General Fund Unrestricted and Unassigned Surplus For the Fiscal Years ended September 30, 2012-2021 In 1995, the state of Florida limited all local governments’ ability to increase property assessments of homestead property in any given year to 3 percent or cost of living, whichever is lower. The graph below shows the millage rates over the past ten years. Since FY16, the Village has maintained the operating millage consistently at 7.9 mills. For many years, the Village, just like many cities across the country, has had to face the challenge of keeping taxes and service charges as low as possible while providing residents with the level of service they have come to expect. Miami Shores Village Total Village Millage For the Fiscal Years ended September 30, 2012-2021 Fiscal year 2022 budgeted expenditures and transfers are expected to increase $782 thousand compared with fiscal year 2021. This increase in expenditures is the result of the COVID-19 pandemic restrictions subsiding, as well as the direct economic impact, resulting from the pandemic, with price increases as the supply chain issues and shortages occur. Additional contributory factors include the increase in Village staff budgeted positions and the increase in capital improvements delayed due to the pandemic. $- $1,000,000.00 $2,000,000.00 $3,000,000.00 $4,000,000.00 $5,000,000.00 $6,000,000.00 $7,000,000.00 $8,000,000.00 $9,000,000.00 $10,000,000.00 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 7.4 7.6 7.8 8 8.2 8.4 8.6 8.8 9 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Operating Millage Debt Service Millage 14 Requests for Information This financial report is designed to provide a general overview of Miami Shores Village finances to our citizens, taxpayers, customers, investors, creditors, and others with an interest in the Village finances. Questions concerning this report or requests for additional financial information should be directed to the Finance Director, Holly Hugdahl, CPA, CGMA. MIAMI SHORES VILLAGE Finance Department 10050 Northeast Second Avenue Miami Shores, Florida 33138-2382 BASIC FINANCIAL STATEMENTS Governmental Business-Type Activities Activities Total ASSETS Cash and cash equivalents 14,964,683$ 3,012,028$ 17,976,711$ Investments 321,644 - 321,644 Accounts receivables - net 3,005,521 191,009 3,196,530 Special assessment receivable - 3,554,595 3,554,595 Inventories 35,519 87,885 123,404 Prepaid Items 239,640 - 239,640 Restricted assets: Cash and cash equivalents - 5,323 5,323 Total current assets 18,567,007 6,850,840 25,417,847 Capital assets: Capital assets not being depreciated 3,190,109 108,149 3,298,258 Capital assets being depreciated, net 19,840,559 2,478,655 22,319,214 Total capital assets 23,030,668 2,586,804 25,617,472 Total assets 41,597,675 9,437,644 51,035,319 DEFERRED OUTFLOWS OF RESOURCES Pension 2,849,048 122,950 2,971,998 Other post employment benefits (OPEB)41,055 1,460 42,515 Total deferred outflows of resources 2,890,103 124,410 3,014,513 LIABILITIES Accounts payable and accrued liabilities 747,066 85,489 832,555 Unearned revenues 71,177 1,070,384 1,141,561 Noncurrent liabilities: Due within one year 353,238 18,367 371,605 Due in more than one year 10,603,690 3,986,252 14,589,942 Total liabilities 11,775,171 5,160,492 16,935,663 DEFERRED INFLOWS OF RESOURCES Busines license tax 73,023 - 73,023 Pension 898,219 17,725 915,944 Other post employment benefits (OPEB) 150,658 5,360 156,018 Total deferred inflows of resources 1,121,900 23,085 1,144,985 NET POSITION Net investment in capital assets 19,026,768 2,586,804 21,613,572 Restricted for: Public safety 770,529 - 770,529 Transportation 1,113,337 - 1,113,337 Building 151,822 - 151,822 Library 655,587 - 655,587 Debt service 1,216,069 - 1,216,069 Charter school 128,418 - 128,418 Parks and recreation 85,028 - 85,028 Capital projects 1,265,401 - 1,265,401 Subsequent years budget 1,301,451 269,100 1,570,551 Unrestricted 5,876,297 1,522,573 7,398,870 Total net position 31,590,707$ 4,378,477$ 35,969,184$ MIAMI SHORES VILLAGE, FLORIDA STATEMENT OF NET POSITION SEPTEMBER 30, 2021 See notes to basic financial statements. 15 MIAMI SHORES VILLAGE, FLORIDA STATEMENT OF ACTIVITIES FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2021 Net Revenue (Expense) and Changes in Net Position Operating Capital Business- Charges for Grants and Grants and Governmental Type Functions/Programs Expenses Services Contributions Contributions Activities Activities Total Primary government Governmental activities: General government 4,123,057$ 2,222,726$ -$ -$ (1,900,331)$ -$ (1,900,331)$ Public safety 7,741,150 2,290,601 - - (5,450,549) - (5,450,549) Public works 3,859,748 40,266 739,700 - (3,079,782) - (3,079,782) Culture and recreation 3,105,811 978,267 - - (2,127,544) - (2,127,544) Interest on long-term debt 115,349 - - - (115,349) - (115,349) Total governmental activities 18,945,115 5,531,860 739,700 - (12,673,555) - (12,673,555) Business-type activities: Solid waste 2,875,443 3,255,247 - - - 379,804 379,804 Stormwater 206,141 571,984 - - - 365,843 365,843 Water & wastewater 103,416 20,978 - - - (82,438) (82,438) Total business-type activities 3,185,000 3,848,209 - - - 663,209 663,209 Total primary government 22,130,115 9,380,069 739,700 - (12,673,555) 663,209 (12,010,346) General revenues: Property taxes, levied for general purposes 10,015,239$ -$ 10,015,239$ Public service taxes 2,232,886 - 2,232,886 Intergovernmental (unrestricted)4,201,094 - 4,201,094 Investment income (unrestricted)27,133 2,083 29,216 Miscellaneous 421,008 757 421,765 Special item - gain (loss) on sale of asset (145,753) - (145,753) Transfers 336,425 (336,425) - Total general revenues, special items, and transfers 17,088,032 (333,585) 16,754,447 Change in net position 4,414,477 329,624 4,744,101 Net position - beginning 27,176,230 4,048,853 31,225,083 Net position - ending 31,590,707$ 4,378,477$ 35,969,184$ Program Revenue See notes to basic financial statements. 16 MIAMI SHORES VILLAGE BALANCE SHEET GOVERNMENTAL FUNDS SEPTEMBER 30, 2021 Major Funds Other Nonmajor Total General Police Governmental Governmental Fund Forfeiture Grants Funds Funds ASSETS Cash and cash equivalents 6,652,809$ 736,248$ -$ 5,014,575$ 12,403,632$ Investments 321,644 - - - 321,644 Accounts receivable, net 601,261 17,232 2,234,092 146,316 2,998,901 Due from other funds 3,420,290 - - - 3,420,290 Prepaid expenses 19,092 - - - 19,092 Total assets 11,015,096 753,480 2,234,092 5,160,891 19,163,559 LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES Liabilities: Accounts payable and accrued liabilities 265,092 14,356 2,737 445,373 727,558 Due to other funds - - 3,420,290 - 3,420,290 Unearned revenue 61,937 - 9,240 - 71,177 Total liabilities 327,029 14,356 3,432,267 445,373 4,219,025 Deferred inflows of resources: Business license tax 73,023 - - - 73,023 Total deferred inflows of resources 73,023 - - - 73,023 Fund balances: Nonspendable 19,092 - - - 19,092 Restricted - 739,124 - 3,381,666 4,120,790 Committed - - - 1,265,401 1,265,401 Assigned 863,000 - - 68,451 931,451 Unassigned 9,732,952 - (1,198,175) - 8,534,777 Total fund balances 10,615,044 739,124 (1,198,175) 4,715,518 14,871,511 Total liabilities, deferred inflows of resources, and fund balances 11,015,096$ 753,480$ 2,234,092$ 5,160,891$ 19,163,559$ See notes to basic financial statements. 17 Fund balances - total governmental funds (Page 16)14,871,511$ 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 46,373,315 Less accumulated depreciation (25,270,517) 21,102,798 Deferred inflows/outflows of resources in the statement of net position will be recognized in future periods. Deferred outflows related to OPEB 40,603 Deferred inflows related to OPEB (149,000) Deferred outflows related to pension 2,811,290 Deferred inflows related to pension (892,772) 1,810,121 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 (4,003,900) OPEB liability (545,855) Net pension liability (5,472,848) Compensated absences (831,500) (10,854,103) Net position of internal service funds are not reported with governmental funds 4,660,380 Net position of governmental activities (Page 14)31,590,707$ SEPTEMBER 30, 2021 MIAMI SHORES VILLAGE, FLORIDA RECONCILIATION OF THE BALANCE SHEET TO THE STATEMENT OF NET POSITION GOVERNMENTAL FUNDS See notes to basic financial statements. 18 MIAMI SHORES VILLAGE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2021 Major Funds Other Nonmajor Total General Police Governmental Governmental Fund Forfeiture Grants Funds Funds REVENUES Property taxes 9,558,415$ -$ -$ 456,824$ 10,015,239$ Public services taxes 2,232,886 - - - 2,232,886 Fees and fines 271,110 53,061 - 1,103 325,274 Licenses and permits 1,240,591 - - 39,142 1,279,733 Intergovernmental 1,209,673 - 2,908,641 839,835 4,958,149 Grants, contributions and donations - - - 25,658 25,658 Charges for services 1,619,550 - - - 1,619,550 Investment earnings 16,035 1,830 - 6,300 24,165 Miscellaneous 342,191 24,510 - - 366,701 Total revenues 16,490,451 79,401 2,908,641 1,368,862 20,847,355 EXPENDITURES Current: General government 2,683,696 - 442,262 5,000 3,130,958 Public safety 8,100,349 44,008 46,909 8,267 8,199,533 Public works 1,754,241 - - 379,916 2,134,157 Culture and recreation 2,690,190 - 1,480 20,513 2,712,183 Debt Service: Principal - - - 331,400 331,400 Interest - - - 115,349 115,349 Capital outlay - 484,364 258,459 843,649 1,586,472 Total expenditures 15,228,476 528,372 749,110 1,704,094 18,210,052 Excess (deficiency) of revenues over expenditures 1,261,975 (448,971) 2,159,531 (335,232) 2,637,303 OTHER FINANCING SOURCES (USES) Transfers in 400,000 - - 359,971 759,971 Transfers out (332,800) - - (5,421) (338,221) Total other financing sources and uses 67,200 - - 354,550 421,750 Net change in fund balances 1,329,175 (448,971) 2,159,531 19,318 3,059,053 Fund balances (deficit) - beginning 9,285,869 1,188,095 (3,357,706) 4,696,200 11,812,458 Fund balances - ending 10,615,044$ 739,124$ (1,198,175)$ 4,715,518$ 14,871,511$ See notes to basic financial statements. 19 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)3,059,053$ 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 1,586,472$ Less current year depreciation (1,259,401) Net adjustment 327,071 The net effect of various transactions involving capital assets (i.e., sales, trade-ins and donations) is to increase (decrease) net position.(145,753) 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 331,400 331,400 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 931,195 Change in compensated absences (77,887) Change in OPEB liability and other deferral amounts (3,415) Allocation of internal service funds' change in net position (7,187) 842,706 Change in net position of governmental activities (Page 14)4,414,477$ FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2021 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. 20 MIAMI SHORES VILLAGE STATEMENT OF NET POSITION PROPRIETARY FUNDS SEPTEMBER 30, 2021 Governmental Enterprise Funds Activities- Solid Waste Stormwater Water & Wastewater Total Internal Service Funds ASSETS Current assets: Cash and cash equivalents 1,247,518$ 1,646,227$ 118,283$ 3,012,028$ 2,561,051$ Accounts receivable, net 177,217 13,792 - 191,009 6,620 Special assessment receivables 8,087 1,132 3,545,376 3,554,595 - Inventories 87,885 - - 87,885 35,519 Prepaid Expenses - - - - 220,548 Restricted assets: Cash and cash equivalents - - 5,323 5,323 - Total current assets 1,520,707 1,661,151 3,668,982 6,850,840 2,823,738 Non-current assets: Capital assets: Capital assets not being depreciated - 107,081 1,068 108,149 7,127 Capital assets being depreciated, net 983,130 1,495,525 - 2,478,655 1,920,743 Total non-current assets 983,130 1,602,606 1,068 2,586,804 1,927,870 Total assets 2,503,837$ 3,263,757$ 3,670,050$ 9,437,644$ 4,751,608$ DEFERRED OUTLOWS OF RESOURCES Pension 114,326 8,624 - 122,950 37,758 Other post employment benefits 1,301 159 - 1,460 452 Total deferred outflows of resources 115,627 8,783 - 124,410 38,210 LIABILITIES Current liabilities: Accounts payable and accrued liabilities 83,527 1,962 - 85,489 19,508 Unearned revenue 855,963 150,552 63,869 1,070,384 - Compensated absences 17,429 938 - 18,367 7,938 Bonds, notes and loans payable - - 60,000 60,000 - Total current liabilities 956,919 153,452 123,869 1,234,240 27,446 Non-current liabilities: Compensated absences 52,286 2,814 - 55,100 23,813 Net pension liability 196,684 14,836 - 211,520 65,000 OPEB liability 17,496 2,136 - 19,632 6,074 Bonds, notes and loans payable - - 3,640,000 3,640,000 - Total non-current liabilities 266,466 19,786 3,640,000 3,926,252 94,887 Total liabilities 1,223,385 173,238 3,763,869 5,160,492 122,333 DEFERRED INFLOWS OF RESOURCES Pension 16,481 1,244 - 17,725 5,447 Other post employment benefits 4,776 584 - 5,360 1,658 Total deferred inflows of resources 21,257 1,828 - 23,085 7,105 NET POSITION Net investment in capital assets 983,130 1,602,606 1,068 2,586,804 1,927,870 Restricted 140,000 129,100 - 269,100 370,000 Unrestricted 251,692 1,365,768 (94,887) 1,522,573 2,362,510 Total net position 1,374,822$ 3,097,474$ (93,819)$ 4,378,477$ 4,660,380$ Business-type Activities - See notes to basic financial statements. 21 MIAMI SHORES VILLAGE STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITON PROPRIETARY FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2021 Governmental Enterprise Funds Activities- Solid Waste Stormwater Water & Wastewater Total Internal Service Funds REVENUES Charges for services 3,255,247$ 571,984$ 20,978$ 3,848,209$ 2,313,332$ Total operating revenues 3,255,247 571,984 20,978 3,848,209 2,313,332 Operating expenses Personal services 1,060,406 83,296 - 1,143,702 243,985 Utilities 909,149 7,746 - 916,895 16,556 Repairs and maintenance 493,082 24,045 50,757 567,884 271,712 Administrative expenses 161,367 5,618 - 166,985 417,427 Insurance claims and expenses 40,208 7,890 - 48,098 963,733 Depreciation 211,231 77,546 - 288,777 330,749 Total Operating expenses 2,875,443 206,141 50,757 3,132,341 2,244,162 Operating income (loss)379,804 365,843 (29,779) 715,868 69,170 NON-OPERATING REVENUES (EXPENSES) Interest and investment revenue 722 1,319 42 2,083 2,968 Miscellaneous revenue - - 757 757 - Operating grants and contributions - - - - 6,000 Interest expense - - (52,659) (52,659) - Total non-operating revenue (expenses)722 1,319 (51,860) (49,819) 8,968 Income (loss) before contributions and transfers 380,526 367,162 (81,639) 666,049 78,138 Transfers in - - 63,575 63,575 - Transfers out (350,000) (50,000) - (400,000) (85,325) Change in net position 30,526 317,162 (18,064) 329,624 (7,187) Total net position (deficit)- beginning 1,344,296 2,780,312 (75,755) 4,048,853 4,667,567 Total net position (deficit) - ending 1,374,822$ 3,097,474$ (93,819)$ 4,378,477$ 4,660,380$ Business-type Activities - See notes to basic financial statements. 22 Governmental Activities- Solid Waste Stormwater Water & Wastewater Total Internal Service Funds Cash flows from operating activities: Cash received from customers, governments and other funds 3,349,305$ 561,101$ 207,420$ 4,117,826$ 2,316,735$ Cash paid to suppliers (1,673,195) (29,900) (54,807) (1,757,902) (1,726,577) Cash paid for employees (1,159,350) (96,848) - (1,256,198) (249,696) Net cash provided by operating activities 516,760 434,353 152,613 1,103,726 340,462 Cash flows from non-capital financing activities: Transfers in - - 63,575 63,575 - Transfers out (350,000) (50,000) - (400,000) (85,325) Net cash provided by (used in) non-capital financing activities (350,000) (50,000) 63,575 (336,425) (85,325) Cash flows from capital related financing activities: Acquisition and construction of capital assets (251,696) (107,081) (1,068) (359,845) (145,261) Capital contributions - - - - 6,000 Principal paid on long-term debt - - (60,000) (60,000) - Interest paid on capital debt - - (52,659) (52,659) - Net cash provided by (used in) capital and related financing activities (251,696) (107,081) (113,727) (472,504) (139,261) Cash flows from investing activities: Interest and other income 722 1,319 799 2,840 2,968 Net cash provided by investing activities 722 1,319 799 2,840 2,968 Net increase (decrease) in cash and cash equivalents (84,214) 278,591 103,260 297,637 118,844 Cash and cash equivalents, October 1 1,331,732 1,367,636 20,346 2,719,714 2,442,207 Cash and cash equivalents, September 30 1,247,518$ 1,646,227$ 123,606$ 3,017,351$ 2,561,051$ Reported in statement of net position as follows: Cash and cash equivalents 1,247,518$ 1,646,227$ 118,283$ 3,012,028$ 2,561,051$ Restricted - - 5,323 5,323 - 1,247,518$ 1,646,227$ 123,606$ 3,017,351$ 2,561,051$ Reconciliation of operating income to net cash provided by operating activities: Operating income (loss)379,804$ 365,843$ (29,779)$ 715,868$ 69,170$ Adjustments to reconcile operating income to net cash provided by operating activities: Depreciation 211,231 77,546 - 288,777 330,749 Change in assets and liabilities: (Increase) decrease in: Accounts receivable 13,373 (14,924) 172,166 170,615 3,403 Inventories (1,125) 15,502 - 14,377 (10,720) Prepaids - - - - (13,479) Deferred outflows of resources for pension (54,286) (20) - (54,306) (16,729) Increase (decrease) in: Accounts payable and accrued liabilities (68,264) (103) (4,050) (72,417) (31,918) Compensated absences (58,612) (692) - (59,304) 3,092 OPEB liability 1,066 (211) - 855 6,074 Unearned revenues 80,685 4,041 14,276 99,002 - Net pension liability 27,923 (9,272) - 18,651 4,729 Deferred inflows of resources for pension (15,035) (3,357) - (18,392) (3,909) Total adjustments 136,956 68,510 182,392 387,858 271,292 Net cash provided by operating activities 516,760$ 434,353$ 152,613$ 1,103,726$ 340,462$ Noncash capital related financing activities: Contributions -$ -$ -$ -$ -$ Total noncash capital related financing activities -$ -$ -$ -$ -$ Enterprise Funds MIAMI SHORES VILLAGE STATEMENT OF CASH FLOWS PROPRIETARY FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2021 Business-type Activities - See notes to basic financial statements. 23 MIAMI SHORES VILLAGE STATEMENT OF FIDUCIARY NET POSITION FIDUCIARY FUNDS SEPTEMBER 30, 2021 Pension Private Trust Purpose Funds Trust ASSETS Cash and cash equivalents $ 745,789 $ 1,493,927 Receivables: Accounts receivables 110,178 - Interest and dividends 197,576 - Total receivables 307,754 - Investments: Mutual funds - equity 21,734,281 - Common stock 11,877,210 - Corporate bonds 11,555,303 - U.S. Government securities 1,641,607 - Mortgage backed securities 5,363,098 - Foreign stock 1,396,609 - Foreign bonds 116,032 - Municipal bonds 242,108 - Total Investments 53,926,248 - Total assets 54,979,791 1,493,927 NET POSITION Held in trust for benefits and other purposes 54,979,791 1,493,927 See notes to basic financial statements. 24 MIAMI SHORES VILLAGE STATEMENT OF CHANGES IN FIDUCIARY NET POSITION FIDUCIARY FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2021 Pension Private Trust Purpose Funds Trust ADDITIONS Contributions: Employer 1,791,188$ -$ Plan Members 502,761 - State of Florida 110,178 - Total contributions 2,404,127 - Investment earnings: Net increase in fair value of investments 7,963,192 - Interest 2,196,649 1,896 Investment activity expense (223,399) - Total net investment earnings 9,936,442 1,896 Total additions 12,340,569 1,896 DEDUCTIONS Benefits 2,798,354 - Administrative 127,013 - Total deductions 2,925,367 - Change in net position 9,415,202 1,896 Net position - beginning 45,564,589 1,492,031 Net position - ending 54,979,791$ 1,493,927$ See notes to basic financial statements. 25 NOTES TO BASIC FINANCIAL STATEMENTS MIAMI SHORES VILLAGE, FLORIDA NOTES TO BUDGETARY COMPARISON SCHEDULE SEPTEMBER 30, 2021 26 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. Financial Reporting Entity Miami Shores Village, Florida, (the Village) was incorporated in 1932 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, solid waste, 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 BUDGETARY COMPARISON SCHEDULE SEPTEMBER 30, 2021 27 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. 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. Grant Fund - This fund accounts for the use of specific designated resources related to grant programs. The Village reports the following major proprietary fund: Solid Waste Fund - This fund accounts for the operations and maintenance of the Village’s solid waste system. Stormwater Fund - This fund accounts for the operations and maintenance of the Village’s stormwater system. Water & Wastewater 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 & Wastewater Project. Future maintenance costs for the grind pumps will be paid from this fund. MIAMI SHORES VILLAGE, FLORIDA NOTES TO BUDGETARY COMPARISON SCHEDULE SEPTEMBER 30, 2021 28 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 solid waste, 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 BUDGETARY COMPARISON SCHEDULE SEPTEMBER 30, 2021 29 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 BUDGETARY COMPARISON SCHEDULE SEPTEMBER 30, 2021 30 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, 2021 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 Building and improvements 10-40 Land improvements 40 Infrastructure 30 Solid waste equipment 10 Vehicles 5 Other equipments, machinery, furniture and fixtures 3-10 MIAMI SHORES VILLAGE, FLORIDA NOTES TO BUDGETARY COMPARISON SCHEDULE SEPTEMBER 30, 2021 31 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 $2,381,856 and OPEB amounts of $42,515 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 $73,023, pension amounts of $325,801, and OPEB amount of $156,018. 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 21-22 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, 2021, 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 BUDGETARY COMPARISON SCHEDULE SEPTEMBER 30, 2021 32 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, 2021, 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 BUDGETARY COMPARISON SCHEDULE SEPTEMBER 30, 2021 33 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) P. Net Position / Fund Balance (continued) As of September 30, 2021, 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 BUDGETARY COMPARISON SCHEDULE SEPTEMBER 30, 2021 34 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 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 BUDGETARY COMPARISON SCHEDULE SEPTEMBER 30, 2021 35 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, 2021, 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 BUDGETARY COMPARISON SCHEDULE SEPTEMBER 30, 2021 36 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, 2021, 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, 2021, the Village had the following investments: Investment Type Fair Value SBA-PRIME 321,644 Total 321,644 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, 2021 is 49 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, 2021, is 64 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, 2021, 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 BUDGETARY COMPARISON SCHEDULE SEPTEMBER 30, 2021 37 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, 2021, the annual money-weighted rate of return on pension plan investments, net pension plan investment expense, was 21.63% for the General Employee Retirement Plan and 21.19% 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, 2021, the Plans had the following investments and maturities: General Employees' Retirement Plan Investment Type Less Than 1 1-5 6-10 More than 10 years Fair Value Corporate Bonds - 1,143,714 1,560,166 1,273,444 3,977,324 Foreign Bonds Notes & Debentures - - 42,749 - 42,749 Mortgage Backed Securities - - 240,788 1,542,595 1,783,383 Municipal Obligations - - 84,057 - 84,057 U.S. Government Agencies - - - 451,921 451,921 Total - 1,143,714 1,927,760 3,267,960 6,339,434 Police Officers' Retirement Plan Investment Type Less Than 1 1-5 6-10 More than 10 years Fair Value Corporate Bonds 123,983 2,253,736 2,874,408 2,325,852 7,577,979 Foreign Bonds Notes & Debentures - - 73,283 - 73,283 Mortgage Backed Securities - - 431,195 3,148,521 3,579,715 Municipal Obligations - - 158,051 - 158,051 U.S. Government Agencies - 105,738 - 1,083,948 1,189,686 Total 123,983 2,359,474 3,536,937 6,558,321 12,578,715 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 BUDGETARY COMPARISON SCHEDULE SEPTEMBER 30, 2021 38 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, 2021: 2021 Fair Value Percentage of Portfolio US government guaranteed*1,189,686 9.46% Quality rating of credit risk deb securities AAA 173,474 1.38% AA 70,433 0.56% AA-392,762 3.12% A+749,587 5.96% A 591,787 4.70% A-1,829,363 14.54% BBB+1,425,302 11.33% BBB 1,369,414 10.89% BBB-331,407 2.63% NR**4,455,500 35.42% Total fixed income securities 12,578,715$ 100% * 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. ** Not rated as the investments do not have an S&P rating. Police Officers' Retirement Plan The following tables disclose credit ratings by investment type, at September 30, 2021: 2021 Fair Value Percentage of Portfolio US government guaranteed*1,189,686 9.46% Quality rating of credit risk deb securities AAA 173,474 1.38% AA 70,433 0.56% AA-392,762 3.12% A+749,587 5.96% A 591,787 4.70% A-1,829,363 14.54% BBB+1,425,302 11.33% BBB 1,369,414 10.89% BBB-331,407 2.63% NR**4,455,500 35.42% Total fixed income securities 12,578,715$ 100% * 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. ** Not rated as the investments do not have an S&P rating. MIAMI SHORES VILLAGE, FLORIDA NOTES TO BUDGETARY COMPARISON SCHEDULE SEPTEMBER 30, 2021 39 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, 2021, 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 BUDGETARY COMPARISON SCHEDULE SEPTEMBER 30, 2021 40 NOTE 4 – FAIR VALUE MEASUREMENT (CONTINUED) The Plans have the following recurring fair value measurements as of September 30, 2021: General Employees' Retirement Plan Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs 9/30/2021 (Level 1)(Level 2) Investments by fair value level: Debt securities: US Government Obligations 451,921$ -$ 451,921$ Municipal Obligations 84,057 - 84,057 Corporate Bonds 3,977,324 - 3,977,324 Foreign Bonds Notes & Debentures 42,749 - 42,749 Mortgage Backed Securitites 1,783,383 - 1,783,383 Total debt securities 6,339,434 - 6,339,434 Equity Securities: Common Stock 3,998,137 3,998,137 - Foreign Stock 470,183 391,941 78,242 Mutual Funds/Equity 8,685,669 8,685,669 - Total equity securities 13,153,989 13,075,747 78,242 Total investments at fair value 19,493,423$ 13,075,747$ 6,417,676$ Police Officers' Retirement Plan Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs 9/30/2021 (Level 1)(Level 2) Investments by fair value level: Debt securities: US Government Obligations 1,189,686$ 105,738$ 1,083,948$ Municipal Obligations 158,051 - 158,051 Corporate Bonds 7,577,979 - 7,577,979 Foreign Bonds Notes & Debentures 73,283 - 73,283 Mortgage Backed Securitites 3,579,715 - 3,579,715 Total debt securities 12,578,715 105,738 12,472,977 Equity Securities: Common Stock 7,879,073 7,879,073 - Foreign Stock 926,426 772,243 154,183 Mutual Funds/Equity 13,048,612 13,048,612 - Total equity securities 21,854,111 21,699,928 154,183 Total investments at fair value 34,432,825$ 22,404,822$ 12,615,028$ MIAMI SHORES VILLAGE, FLORIDA NOTES TO BUDGETARY COMPARISON SCHEDULE SEPTEMBER 30, 2021 41 NOTE 5 – RECEIVABLES Receivables as of September 30, 2021 for the Village’s individual major funds and non-major funds in the aggregate consist of the following: Water & Non-major Internal Grant Police Solid Waste Stormwater Wastewater Governmental Enterprise General Fund Forfeiture Fund Fund Fund Funds Funds Total Receivables: Accounts 71,479$ -$ -$ 177,217$ 13,792$ -$ -$ 3,620$ 266,108$ Taxes 435,425 - - - - - 146,316 - 581,741 Special assessment - - - 8,087 1,132 3,545,376 - - 3,554,595 Grants and other 94,357 2,234,092 17,232 - - - - 3,000 2,348,681 Total receivables 601,261$ 2,234,092$ 17,232$ 185,304$ 14,924$ 3,545,376$ 146,316$ 6,620$ 6,751,125$ NOTE 6 – CAPITAL ASSETS Capital assets activity for the fiscal year ended September 30, 2021 was as follows: Governmental activities Beginning Increases Decreases Ending Capital assets not being depreciated: Land 2,386,158$ -$ -$ 2,386,158$ Construction in progress 2,155,535 620,122 (1,971,706) 803,951 Total capital assets not being depreciated 4,541,693 620,122 (1,971,706) 3,190,109 Capital assets being depreciated: Building and improvements 14,449,083 68,877 - 14,517,960 Infrastructure 24,321,411 1,901,907 (1,699,783) 24,523,535 Machinery and equipment 7,281,072 1,176,574 (421,907) 8,035,739 Intangible 1,066,568 62,845 (13,792) 1,115,621 Total capital assets being depreciated 47,118,134 3,210,203 (2,135,482) 48,192,855 Less accumulated depreciation for: Building and improvements (5,269,746) (299,966) - (5,569,712) Infrastructure (18,376,767) (490,477) 1,559,904 (17,307,340) Machinery and equipment (4,547,208) (666,450) 290,064 (4,923,594) Intangible (431,262) (133,258) 12,870 (551,650) Total accumulated depreciation (28,624,983) (1,590,151) 1,862,838 (28,352,296) Total capital assets being depreciated, net 18,493,151 1,620,052 (272,644) 19,840,559 Governmental activities capital assets, net 23,034,844$ $ 2,240,174 $ (2,244,350)23,030,668$ MIAMI SHORES VILLAGE, FLORIDA NOTES TO BUDGETARY COMPARISON SCHEDULE SEPTEMBER 30, 2021 42 NOTE 6 – CAPITAL ASSETS (CONTINUED) Business-type activities Beginning Increases Decreases Ending Capital assets not being depreciated: Construction in progress -$ 108,149$ -$ 108,149$ Total capital assets not being depreciated - 108,149 - 108,149 Capital assets being depreciated: Machinery and equipment 2,415,498 251,695 (76,628) 2,590,565 Drainage improvements 2,652,170 - - 2,652,170 Total capital assets being depreciated 5,067,668 251,695 (76,628) 5,242,735 Less accumulated depreciation for: Machinery and equipment (1,471,936) (212,127) 76,628 (1,607,435) Drainage improvements (1,079,993) (76,652) - (1,156,645) Total accumulated depreciation (2,551,929) (288,779) 76,628 (2,764,080) Total capital assets being depreciated, net 2,515,739 (37,084) - 2,478,655 Business-type activities capital assets, net 2,515,739$ 71,065$ -$ 2,586,804$ Depreciation expense was charged to functions/programs of the Village as follows: Governmental activities General Government 174,632$ Public Safety 258,861 Public Works 749,609 Culture and Recreation 407,049 Total depreciation expense – governmental activities 1,590,151$ Business- type activities Solid Waste 211,231$ Stormwater 77,546 Total depreciation expense – business-type activities 288,777$ 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 2021 to a final payment of $169,000 in 2029. The bonds bear interest at variable rates ranging from 2.49 to 3.03%, payable semi-annually. The bonds are secured by ad-valorem revenues. The indenture contains a provision that in an event of default, outstanding amounts including accrued interest are due immediately. MIAMI SHORES VILLAGE, FLORIDA NOTES TO BUDGETARY COMPARISON SCHEDULE SEPTEMBER 30, 2021 43 NOTE 7 – LONG-TERM DEBT (CONTINUED) Miami Shores Village, Florida Refunding General Obligation Bond, Series 2013 (Continued) Debt service requirements to maturity for the fiscal year ending September 30, 2021 are summarized as follows: September 30,Principal Interest Total 2022 145,000 29,697 174,697 2023 146,000 26,023 172,023 2024 152,000 22,328 174,328 2025 153,000 18,412 171,412 2026 159,000 14,473 173,473 2027-2029 494,000 18,940 512,940 1,249,000$ 129,873$ 1,378,873$ 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 2021 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 $947,000. The indenture contains a provision that in an event of default, outstanding amounts including accrued interest are due immediately. Debt service requirements to maturity for the fiscal year ending September 30, 2021 are summarized as follows: September 30,Principal Interest Total 2022 200,300 67,431 267,731 2023 201,800 62,324 264,124 2024 208,200 57,117 265,317 2025 214,200 51,752 265,952 2026 219,400 46,246 265,646 2027-2031 1,190,600 143,277 1,333,877 2032-2033 520,400 13,307 533,707 2,754,900$ 441,454$ 3,196,354$ 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 $1,000,000 of draw down. MIAMI SHORES VILLAGE, FLORIDA NOTES TO BUDGETARY COMPARISON SCHEDULE SEPTEMBER 30, 2021 44 NOTE 7 – LONG-TERM DEBT (CONTINUED) The Village does not currently have unused line of credit or assets placed as collateral for debt. Changes in Governmental Activities Long-term liabilities during the fiscal year ended September 30, 2021 were as follows: For governmental activities, compensated absences, pension liabilities and other post-employment (OPEB) benefits are generally liquidated by the general fund. Claims and adjustments are liquidated by the Risk Management internal service fund. Accordingly, their long-term liabilities for compensated absences, pension liabilities, and the other post-employment benefit (OPEB) liability are included as part of the totals for governmental activities. NOTE 8 – INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS The amount due to/from other funds at September 30,2021 were as follows: • Amounts due from grants fund to the general fund are for advances made to the grants fund to cover FEMA expenditures until the receivables on those funds are collected. Beginning Ending Due within Balance Increases Decreases Balance one year Governmental activities Bonds and notes payable: Refunding General Obligation Bond, Series 2013 1,387,000$ -$ (138,000)$ 1,249,000$ 145,000$ Refunding General Obligation Bond, Series 2015 2,948,300 - (193,400) 2,754,900 200,300 Total bonds and notes payable 4,335,300 - (331,400) 4,003,900 345,300 Other liabilities: OPEB liability 517,453 34,476 - 551,929 - Compensated absences 781,240 862,350 (780,339) 863,251 7,938 Net pension liability 4,924,745 613,103 - 5,537,848 - Total other liabilities 6,223,438 1,509,929 (780,339) 6,953,028 7,938 Governmental activity long-term liabilities 10,558,738$ 1,509,929$ (1,111,739)$ 10,956,928$ 353,238$ Business-type activities FLGFC Notes Payable 3,760,000$ -$ (60,000)$ 3,700,000$ 60,000$ Other liabilities: OPEB liability 18,777 855 - 19,632 - Compensated absences 132,771 76,493 (135,797) 73,467 18,367 Net pension liability 192,869 18,651 - 211,520 - Business-type activities long-term liabilities 4,104,417$ 95,999$ (195,797)$ 4,004,619$ 78,367$ Receivables Payables General Fund $ 3,420,290 $ - Grants - 3,420,290 Total $ 3,420,290 $ 3,420,290 MIAMI SHORES VILLAGE, FLORIDA NOTES TO BUDGETARY COMPARISON SCHEDULE SEPTEMBER 30, 2021 45 NOTE 8 – INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS (CONTINUED) Interfund transfer activity for the year ended September 30, 2021 was as follows: 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 $269,225 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: Transfers In Transfers Out General Fund 400,000 332,800 Solid Waste - 350,000 Stormwater - 50,000 Water & Wastewater 63,575 - Non-Major Governmental Funds 359,971 5,421 Internal Service Funds - 85,325 Total $ 823,546 $ 823,546 General Employees Police Inactive employees: Retirees and beneficiaries currently receiveing benefits 59 29 Reitrees entitled to benefits but not yet receiving them 7 - Active participants:68 36 Total members 134 65 MIAMI SHORES VILLAGE, FLORIDA NOTES TO BUDGETARY COMPARISON SCHEDULE SEPTEMBER 30, 2021 46 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, 2021, there were 7 members in the DROP and their fair value of DROP investment was $450,927 which is included in the Plan’s net position. At the end of September 30, 2021, the Plan had no DROP Liability. Funding Requirement Plan members are required to contribute 6% of their annual covered salary. The Village contributes at actuarially determined rates that are designed to accumulate sufficient assets to pay benefits when due. Effective May 30, 2012, the Division of Retirement mandated that local governments confer with the Plan’s actuary to select and maintain contribution method (percentage of payroll or fixed dollar contributions) that best fits the funding requirements of the Plan. The Plan determined to use the “percentage of payroll contribution” method for the fiscal year ended September 30, 2021. MIAMI SHORES VILLAGE, FLORIDA NOTES TO BUDGETARY COMPARISON SCHEDULE SEPTEMBER 30, 2021 47 NOTE 9 – EMPLOYEE RETIREMENT PLANS - PLANS’ REPORTING (CONTINUED) General Employees’ Retirement Plan (Continued) Funding Requirement (Continued) The actual contribution from the Village for active members were actuarially determined using the actuarial valuation as of October 1, 2019 for the year ended September 30, 2021. The contributions consisted of the following at September 30, 2021: Actual Contribution Percentage of Covered Payroll Village 454,695 11.80% Members 231,206 N/A Net Pension Liability Total pension liability 18,539,725$ Plan fiduciary net position 19,811,108 Net pension liability (1,271,383)$ Plan fiduciary net position as a percentage of total pension liability -32.99% 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, 2021 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 Mortality Experience-based table of rates that are specific to the type of eligibility condition. 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, 2021 are summarized in the following table: Asset Group Long-term Expected Real Rate of Return Domestic Equity 7.50% International Equity 8.50% Domestic Bonds 2.50% International Bonds 3.50% Real Estate 4.50% MIAMI SHORES VILLAGE, FLORIDA NOTES TO BUDGETARY COMPARISON SCHEDULE SEPTEMBER 30, 2021 48 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% 822,702$ $ (1,271,383)(3,022,969)$ 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, 2021. ASSETS Cash and cash equivalents $ 250,556 Investments, at fair value 19,493,423 Accrued interest receivable 67,129 Total assets 19,811,108 Net pos ition restricted for pension 19,811,108$ ADDITIONS Contributions 685,901$ Net investment income 3,683,932 Total additions 4,369,833 DEDUCTIONS Pension benefits 1,342,454 Administrative expenses 44,194 Total deductions 1,386,648 Increase 2,983,185 Net position restricted for pension Beginning of year 16,827,923 End of year 19,811,108$ STATEMENT OF FIDUCIARY NET POSITION SEPTEMBER 30, 2021 STATEMENT OF CHANGES IN PLAN NET POSITION FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2021 MIAMI SHORES VILLAGE, FLORIDA NOTES TO BUDGETARY COMPARISON SCHEDULE SEPTEMBER 30, 2021 49 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, 2021, there were 3 members in the DROP and their fair value of DROP investment was $588,597 which is included in the Plan’s net position. At the end of September 30, 2021, 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, 2021. Pursuant to Chapter 185, Florida Statutes, a portion of all insurance premium tax monies received in excess of the threshold of $60,386 are to be uitlized to provide future minimum extra benefits and may not be used to reduce or offset the contribution requirements of the employer. MIAMI SHORES VILLAGE, FLORIDA NOTES TO BUDGETARY COMPARISON SCHEDULE SEPTEMBER 30, 2021 50 NOTE 9 – EMPLOYEE RETIREMENT PLANS - PLANS’ REPORTING (CONTINUED) Police Officers' Retirement Plan (Continued) The actual contribution from the Village for active members were actuarially determined using the actuarial valuation as of October 1, 2019 for the year ended September 30, 2021. The contributions consisted of the following at September 30, 2021: Actual Contribution Percentage of Covered Payroll Village 1,336,493$ 44.29% State of Florida 110,178 3.65% Members 271,555 N/A Total contributions 1,718,226$ 47.95% Net Pension Liability Total pension liability 34,767,849$ Plan fiduciary net position 35,168,683 Net pens ion liability (400,834)$ Plan fiduciary net position as a percentage of total pension liability 101.15% Significant Actuarial Assumptions The total pension liability was determined by an actuarial valuation as of October 1, 2020 and rolled forward to the measurement date of September 30, 2021, using the following actuarial assumptions: Interest rates: Actuarial Cost Method Entry Age Normal Infla tion 2.25% Salary Increases 6.00%, including inflation Investment Rate of Return 7.00% Retirement Age Mortality All actives are assumed to reitre when first eligible for Noraml Retirement. The rate of retirement is 1% for each year of eligibility for Early Retirement. 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, 2021 are summarized in the following table: Asset Group Long-term Expected Real Rate of Return Domestic Equity 7.50% International Equity 8.50% Domestic Bonds 2.50% International Bonds 3.50% Real Estate 4.50% MIAMI SHORES VILLAGE, FLORIDA NOTES TO BUDGETARY COMPARISON SCHEDULE SEPTEMBER 30, 2021 51 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% 4,141,822$ (400,834)$ (4,137,383)$ 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, 2021. ASSETS Cash and cash equivalents $ 495,233 Investments, at fair value 34,432,825 Receivables 110,178 Interest and dividends 130,447 Total assets 35,168,683 Net position restricted for pension 35,168,683$ ADDITIONS Contributions 1,718,226$ Net investment income 6,252,510 Total additions 7,970,736 DEDUCTIONS Pension benefits 1,455,900 Administrative expenses 82,819 Total deductions 1,538,719 Increase 6,432,017 Net position restricted for pension Beginning of year 28,736,666 End of year 35,168,683$ STATEMENT OF FIDUCIARY NET POSITION SEPTEMBER 30, 2021 STATEMENT OF CHANGES IN PLAN NET POSITION FOR THE FISCAL YEAR ENDED SEPTEMEBR 30, 2021 MIAMI SHORES VILLAGE, FLORIDA NOTES TO BUDGETARY COMPARISON SCHEDULE SEPTEMBER 30, 2021 52 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 receiveing benefits 59 29 Reitrees entitled to benefits but not yet receiving them 7 - 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 BUDGETARY COMPARISON SCHEDULE SEPTEMBER 30, 2021 53 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 7 members in the DROP and their fair value of DROP investment was $450,927 which is included in the Plan’s net position. At the end of September 30, 2021, 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, 2021. 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, 2021. 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: The Village's net pension liability was measured as of September 30, 2020. The total pension liability used to calculate the net pension liability was determined as of that date. MIAMI SHORES VILLAGE, FLORIDA NOTES TO BUDGETARY COMPARISON SCHEDULE SEPTEMBER 30, 2021 54 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 October 1, 2019 and rolled forward to the September 30, 2020 measurement date, 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 Mortality Experience based table of rates that are specific to the type of eligiblity condition. 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 2.5%. 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, 2020 are summarized in the following table: Asset Group Long-term Expected Real Rate of Return Domestic Equity 7.50% International Equity 8.50% Domestic Bonds 2.50% International Bonds 3.50% Real Estate 4.50% 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. MIAMI SHORES VILLAGE, FLORIDA NOTES TO BUDGETARY COMPARISON SCHEDULE SEPTEMBER 30, 2021 55 NOTE 10 – EMPLOYEE RETIREMENT PLANS VILLAGE’S REPORTING (CONTINUED) General Employees’ 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, 2020 16,889,074$ 15,683,642$ 1,205,432$ Service Cost 393,715 - 393,715 Interest 1,266,525 - 1,266,525 Changes of assumptions 442,573 442,573 Difference between actual & expected experience - - - Contributions - Employer - 403,199 (403,199) Contributions - Member - 217,098 (217,098) Benefit Payments (791,587) - (791,587) Net Investment Income - 1,373,773 (1,373,773) Benefit Payments - (791,587) 791,587 Administrative Expense - (58,202) 58,202 Reporting period ending at September 30, 2021 18,200,300$ 16,827,923$ 1,372,377$ Plan Fiduciary Net Position as a Percentage of Total Pension Liability 92.46% Covered Payroll 3,618,300$ Net Pension Liability as a Percentage of Covered Payroll 37.93% 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 7.00%, 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: 1% Decrease Rate Assumption 1% Increase 6.00%7.00%8.00% 3,428,080$ $ 1,372,377 (346,238)$ 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 $147,823. At September 30, 2021, the Village reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Outflows of Resources Deferred Inflows of Resources Difference between expected and actual experience 16,785$ -$ Changes in assumptions 326,241 - Net difference between projected and actual earnings on pension plan investments - 114,996 Total 343,026$ 114,996$ MIAMI SHORES VILLAGE, FLORIDA NOTES TO BUDGETARY COMPARISON SCHEDULE SEPTEMBER 30, 2021 56 NOTE 10 – EMPLOYEE RETIREMENT PLANS - VILLAGE’S REPORTING (CONTINUED) General Employees’ Retirement Plan (Continued) The Village contributions subsequent to the measurement date of $454,695 are reported as deferred outflows of resources and will be recognized as a reduction of the net pension liability in the fiscal year ending September 30, 2022 (which will include the net pension liability measured at September 30, 2021). Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: Fiscal year ending September 30, Net Deferred Outflows of Resources 2022 (2,837)$ 2023 117,382 2024 170,275 2025 (56,790) 2026 - Thereafter - 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 BUDGETARY COMPARISON SCHEDULE SEPTEMBER 30, 2021 57 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, 2021, there were 3 members in the DROP and their fair value of DROP investment was $588,597 which is included in the Plan’s net position. At the end of September 30, 2021, 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 $60,386 are to be utlized to provide future minimum extra benefits and may not be used to reduce or offset the contribution requirements of the employer. The actual contribution from the Village for active members were actuarially determined using the actuarial valuation as of October 1, 2019 for the year ended September 30, 2021. The contributions consisted of the following at September 30, 2020: Actual Contribution Percentage of Covered Payroll Village 808,455 27.50% State of Florida 105,165 3.58% Members 264,605 N/A Total contributions 1,178,225$ 31.07% Net Pension Liability: The Village's net pension liability was measured as of September 30, 2020 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: Interest rates: Actuarial Cost Method Entry Age Normal Inflation 2.25% Salary Increases 6.00%, including inflation Investment Rate of Return 7.00% Retirement Age Mortality All actives are assumed to retire when first eligible for Normal Retiement.The rate ofretirement is 1%for each year of eligibility for Early Retirement. 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. MIAMI SHORES VILLAGE, FLORIDA NOTES TO BUDGETARY COMPARISON SCHEDULE SEPTEMBER 30, 2021 58 NOTE 10 – EMPLOYEE RETIREMENT PLANS - VILLAGE’S REPORTING (CONTINUED) Police Officers' Retirement Plan (Continued) 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, 2020 are summarized in the following table: Asset Group Long-term Expected Real Rate of Return Domestic Equity 7.50% International Equity 8.50% Domestic Bonds 2.50% International Bonds 3.50% Real Estate 4.50% 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 7.50%. 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. 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, 2020 30,634,478$ 26,722,296$ 3,912,182$ Service Cost 826,391 - 826,391 Interest 2,306,113 - 2,306,113 Change of Benefit Terms - - - Difference between actual & expected experience (34,466) - (34,466) Contributions - Employer - 808,455 (808,455) Contributions - State - 105,165 (105,165) Contributions - Employee (Including Buyback Contributions)- 264,605 (264,605) Change of Assumptions 795,173 - 795,173 Net Investment Income - 2,347,637 (2,347,637) Benefit Payments (1,425,391) (1,425,391) - Administrative Expense - (86,101) 86,101 Other (Changes in State Contribution Reserve 11,359 - 11,359 Reporting period ending at September 30, 2021 33,113,657$ 28,736,666$ 4,376,991$ Plan Fiduciary Net Position as a Percentage of Total Pension Liability 86.78% Covered Payroll 2,940,056$ Net Pension Liability as a Percentage of Covered Payroll 148.87% Increase (Decrease) MIAMI SHORES VILLAGE, FLORIDA NOTES TO BUDGETARY COMPARISON SCHEDULE SEPTEMBER 30, 2021 59 NOTE 10 – EMPLOYEE RETIREMENT PLANS - VILLAGE’S REPORTING (CONTINUED) Police Officers' Retirement Plan (Continued) 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 7.00%, 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: 1% Decrease Rate Assumption 1% Increase 6.00%7.00%8.00% 8,786,122$ $ 4,376,991 754,109$ Current Single Discount For the year ended September 30, 2020, the Village will recognize pension expense of $176,245. At September 30, 2020 the Village reported deferred inflows of resources related to pensions from the following sources: Deferred Outflows of Resources Deferred Inflows of Resources Difference between expected and actual experience 67,208$ 524,616$ Changes in assumptions 660,398 65,526 Net difference between projected and actual earnings on pension plan investments - 210,804 Total 727,606$ 800,946$ The Village contributions subsequent to the measurement date of $1,446,671 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, 2022 (which will include the net pension liability measured at September 30, 2021). 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 2022 (313,187) 2023 (99,018) 2024 186,304 2025 36,519 2026 116,042 Thereafter - Reconciliation of pension activity to statement of Net Position General Employees Police Officers'Total Net pension liability 1,372,377 4,376,991 5,749,368 Deferred outflows of resources 343,026 727,606 1,070,632 Deferred inflows of resources 114,996 800,946 915,942 Pension expense 147,823 176,245 324,068 MIAMI SHORES VILLAGE, FLORIDA NOTES TO BUDGETARY COMPARISON SCHEDULE SEPTEMBER 30, 2021 60 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. 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. MIAMI SHORES VILLAGE, FLORIDA NOTES TO BUDGETARY COMPARISON SCHEDULE SEPTEMBER 30, 2021 61 NOTE 13 – OTHER POST EMPLOYMENT BENEFITS (CONTINUED) Funding Policy Benefits are funded on a pay-as-you-go basis. Total OPEB Liability The Plan’s total OPEB liability of $571,561 was determined as of September 30, 2019 and rolled forward to the September 30, 2020 measurement date. Actuarial assumptions and other inputs The total OPEB liability in the September 30, 2019 actuarial valuation was determined using the following actuarial assumptions and other inputs, applied to all periods included in the measurement unless otherwise specified. Measurement Date: September 30, 2020 Actuarial Cost Method Entry Age Normal Inflation 2.25% Discount Rate 2.41% Salary Increases Retirement Age Mortality Healthcare Cost Trend Rates Aging factors Expenses Based on the 2013 SOA Study "Health Care Costs From Birth to Death". Administrative expenses are included in the per capita health costs. Based on the Getzen Model,with trend starting at 0.00%to reflect actual premiums for 2020, then 6.25%for 2021 and gradually decreasing to an ultimate trend rate of 3.99% . 5.00%, including inflation for General Employees; and 6.00%, including inflation for Police Officers Experience based table of rates that are specific to the type of eligiblity condition and employment class (Police or General). Mortality tables used in the July 1, 2020 actuarial valuation of the Florida Retirement System.They are based on the results of a statewide experience study covering the period 2013 through 2018. Changes in the Total OPEB Liability Balance at 9/30/20 536,230$ Changes for the year: Service cost 39,045 Interest 15,522 Changes is benefit terms - Changes in assumptions and other input 2,425 Benefit payments (21,661) Net change in OPEB liability 35,331 Balance at 9/30/21 571,561$ MIAMI SHORES VILLAGE, FLORIDA NOTES TO BUDGETARY COMPARISON SCHEDULE SEPTEMBER 30, 2021 62 NOTE 13 – OTHER POST EMPLOYMENT BENEFITS (CONTINUED) 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 2.41%, 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: Sensitivity of the total OPEB liability to changes in the discount rate assumption (Continued) 1% Decrease Rate Assumption 1% Increase 1.41%2.41%3.41% 617,092$ 571,561$ 528,762$ Current Discount 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 501,225$ 571,561$ 655,028$ Current Healthcare Cost OPEB Expenses and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB For the year ended September 30, 2021, the Village Plan recognized OPEB expenses of $44,154. At September 30, 2019, the Plan reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: Deferred Outflows of Deferred Inflows of Resources Resources Difference between expected and actual experience 15,200$ -$ Changes in assumptions and other inputs 2,190 156,017 Total 17,390$ 156,017$ Benefits paid after the measuerment date of $25,126 are reported as deferred outflows of resources and will be recognized as a reduction of total OPEB liability in FYE September 30, 2022. 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 period is 10.3 years. MIAMI SHORES VILLAGE, FLORIDA NOTES TO BUDGETARY COMPARISON SCHEDULE SEPTEMBER 30, 2021 63 NOTE 13 – OTHER POST EMPLOYMENT BENEFITS (CONTINUED) OPEB Expenses and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB (Continued) Deferred Outflows and Inflows of Resources by Year to be recognized in future OPEB expenses are as follows: Fiscal year Ending Net Deffered Inflows September 30 of Resources 2022 (18,859) 2023 (18,859) 2024 (18,859) 2025 (18,859) 2026 (18,859) Thereafter (44,332) NOTE 14 – NEGATIVE FUND BALANCE / NET POSITION The Grants fund reported a negative fund balance in the amount of $1,198,175. This amount is expected to be funded by FEMA funds related to Hurricane Irma, to be received at a later date. The Water and Wastewater fund fund reported a negative net position in the amount of $93,819. This amount is expected to be funded by the normal operations of the fund. REQUIRED SUPPLEMENTARY INFORMATION MIAMI SHORES VILLAGE BUDGETARY COMPARISON SCHEDULE GENERAL FUND FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2021 Variance with Final Budget - Actual Positive Original Final Amounts (Negative) REVENUES Taxes: Property taxes 9,440,990$ 9,440,990$ 9,558,415$ 117,425$ Utility service taxes 1,013,000 1,013,000 1,139,800 126,800 Communications service taxes 345,000 345,000 406,471 61,471 Local business taxes 70,500 70,500 74,305 3,805 Total taxes 10,869,490 10,869,490 11,178,991 309,501 Permits, fees and special assessments: Permits 948,000 1,022,000 1,036,860 14,860 Franchise fees 633,500 633,500 686,615 53,115 Other permits and special assessments 175,000 101,000 130,383 29,383 Total permits, fees and special assessments 1,756,500 1,756,500 1,853,858 97,358 Intergovernmental revenues: State shared revenues 895,740 895,740 1,187,053 291,313 Other 67,716 67,716 62,621 (5,095) Total intergovernmental revenues 963,456 963,456 1,249,674 286,218 Charges for services: General government 36,000 36,000 50,928 14,928 Public safety 575,000 575,000 649,522 74,522 Public works 42,905 42,905 40,266 (2,639) Culture and recreation 1,332,533 1,332,533 928,805 (403,728) Other 950 950 592 (358) Total charges for services 1,987,388 1,987,388 1,670,113 (317,275) Fines and forfeitures: Local ordinance violations 153,100 153,100 253,683 100,583 Other 15,500 15,500 7,142 (8,358) Total fines and forfeitures 168,600 168,600 260,825 92,225 Miscellaneous: Interest and other earnings 30,000 30,000 16,035 (13,965) Rents and royalties 230,000 230,000 230,000 - Other 20,000 20,000 30,955 10,955 Total miscellaneous 280,000 280,000 276,990 (3,010) Total revenues 16,025,434 16,025,434 16,490,451 465,017 Budgeted Amounts See notes to basic financial statements. 64 MIAMI SHORES VILLAGE BUDGETARY COMPARISON SCHEDULE GENERAL FUND FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2021 Variance with Final Budget - Actual Positive Original Final Amounts (Negative) EXPENDITURES Current: General government: Legislative 94,197$ 161,789$ 23,851$ 137,938 Executive 691,210 701,211 678,600 22,611 Financial administrative 476,515 419,515 395,714 23,801 Legal counsel 236,800 386,800 376,092 10,708 Comprehensive planning 209,444 238,444 231,565 6,879 Other 1,123,296 979,212 977,874 1,338 Total general government 2,831,462 2,886,971 2,683,696 203,275 Public Safety: Law enforcement 7,733,198 7,453,769 7,182,516 271,253 Protective inspections 611,867 689,177 676,238 12,939 Other 241,675 241,675 241,595 80 Total public safety 8,586,740 8,384,621 8,100,349 284,272 Public works: Physical environment 1,788,849 1,862,849 1,754,241 108,608 Total public works 1,788,849 1,862,849 1,754,241 108,608 Culture and recreation: Libraries 474,411 474,411 457,726 16,685 Parks and recreation 2,466,716 2,584,216 2,232,464 351,752 Total culture and recreation 2,941,127 3,058,627 2,690,190 368,437 Total expenditures 16,148,178 16,193,068 15,228,476 964,592 Excess (deficiency) of revenues over expenditures (122,744) (167,634) 1,261,975 1,429,609 OTHER FINANCING SOURCES (USES) Transfers in 400,000 400,000 400,000 - Transfers out (277,256) (384,506) (332,800) (51,706) Total other financing sources and uses 122,744 15,494 67,200 (51,706) Appropriation of fund balance - 152,140 - 152,140 Net change in fund balances 1,329,175 Fund balances - beginning 9,285,869 Fund balances - ending 10,615,044$ Budgeted Amounts See notes to basic financial statements. 65 MIAMI SHORES VILLAGE, FLORIDA NOTES TO BUDGETARY COMPARISON SCHEDULE SEPTEMBER 30, 2021 66 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, Solid Waste 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 $152,140, during the fiscal year ended September 30, 2021 for funding outstanding obligations and unanticipated expenses f) Unencumbered appropriations lapse at year end. Reporting fiscal year ending September 30,2021 2020 2019 2018 2017 2016 2015 Measurement fiscal year ending September 30,2020 2019 2018 2017 2016 2015 2014 Total Pension Liability Service Cost 393,715$ 374,153$ 355,620$ 345,113$ 315,449$ 325,868$ 308,880$ Interest 1,266,525 1,197,271 1,129,866 1,134,060 1,079,053 1,018,010 960,279 Difference between actual & expected experience of the Total Pension Liability - 35,435 - (931,742) - 106,918 (7,788) Changes of Assumptions 442,573 - 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 Liability 1,311,226 992,373 888,753 (82,919) 1,072,785 795,276 859,678 Total Pension Liability - Beginning 16,889,074 15,896,701 15,007,948 15,090,867 14,018,082 13,222,806 12,363,128 Total Pension Liability - Ending (a)18,200,300$ 16,889,074$ 15,896,701$ 15,007,948$ 15,090,867$ 14,018,082$ 13,222,806$ Plan Fiduciary Net Position Contributions - 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 Position 1,144,281 436,887 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$ 1,205,432$ 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 92.46%92.86%95.91%91.87%81.50%81.14%88.07% Covered Payroll 1 3,618,300$ 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%33.96%19.34%39.25%88.72%84.03%52.69% 1 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. Covered Payroll was calculated by dividing the total member contributions for the fiscal year by the member contribution rate of 6%. MIAMI SHORES VILLAGE, FLORIDA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF CHANGES IN VILLAGE'S NET PENSION LIABILITY AND RELATED RATIOS GENERAL EMPLOYEES' RETIREMENT SYSTEM (VILLAGE'S REPORTING) (as required by GASB Statement No. 68) See notes to basic financial statements. 67 Fiscal year ending September 30,2021 2020 2019 2018 2017 2016 2015 2014 Total Pension Liability Service Cost 425,088$ 393,715$ 374,153$ 355,620$ 345,113$ 315,449$ 325,868$ 308,880$ Interest 1,256,791 1,263,867 1,197,271 1,199,747 1,134,060 1,070,820 1,018,010 960,279 Difference between actual & expected experience - 38,093 - (1,001,623) - 115,151 - (7,788) Assumption Changes - 442,573 - 645 - 317,996 - - Benefit Payments (1,342,454) (791,587) (614,486) (597,378) (630,350) (639,713) (655,520) (373,038) Refunds - - - - - - - (28,655) Net Change in Total Pension Liability 339,425 1,346,661 956,938 (42,989) 848,823 1,179,703 688,358 859,678 Total Pension Liability - Beginning 18,200,300 16,853,639 15,896,701 15,939,690 15,090,867 13,911,164 13,222,806 12,363,128 Total Pension Liability - Ending (a)18,539,725$ 18,200,300$ 16,853,639$ 15,896,701$ 15,939,690$ 15,090,867$ 13,911,164$ 13,222,806$ Plan Fiduciary Net Position Contributions - Employer 454,695$ 403,199$ 403,200$ 443,102$ 443,102$ 371,453$ 371,453$ 261,966$ Contributions - Member 231,206 217,098 212,987 201,687 186,555 188,786 188,793 179,680 Net Investment Income 3,683,932 1,373,773 472,706 1,452,542 1,531,913 1,074,730 (160,205) 715,959 Benefit Payments (1,342,454) (791,587) (614,486) (597,378) (630,350) (639,713) (655,520) (373,038) Refunds - - - - - - - (28,655) Administrative Expense (44,194) (58,202) (37,520) (40,842) (42,936) (69,962) (15,448) (29,411) Net Change in Plan Fiduciary Net Position 2,983,185 1,144,281 436,887 1,459,111 1,488,284 925,294 (270,927) 726,501 Plan Fiduciary Net Position - Beginning 16,827,923 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) 19,811,108$ 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)(1,271,383)$ 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 106.86%92.46%93.06%95.91%86.50%81.50%81.76%88.07% Covered Payroll 1 3,853,433$ 3,618,300$ 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 -32.99%37.93%32.96%19.34%69.21%88.72%80.63%52.69% 1 This schedule is presented to illustrate the requirement to show information for 10 years. However, until a full 10-year trend is compiled, pension plans should present information for those years for which information is available. (as required by GASB Statement No. 67) MIAMI SHORES VILLAGE, FLORIDA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF CHANGES IN VILLAGE'S NET PENSION LIABILITY AND RELATED RATIOS GENERAL 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%. See notes to basic financial statements. 68 Fiscal Year Actuarially Contribution Actual Contribution Ending Determined Actual Deficiency Covered as a % of September 30,Contribution Contribution (Excess) Payroll Covered Payroll 2021 454,695$ 454,695$ -$ 3,853,433 11.80% 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 - 3,109,250 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, 2019 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 2.25% Salary Increases 5.00% , including inflation Investment Rate of Return 7.00% 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. Experience-based table of rates that are specific to the type of eligibility condition. 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- 20218). 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. 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. 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) See notes to basic financial statements. 69 Fiscal Year Actuarially Contribution Actual Contribution Ending Determined Actual Deficiency Covered as a % of September 30,Contribution Contribution (Excess) Payroll1 Covered Payroll 2021 454,695$ 454,695$ - 3,853,433$ 11.80% 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 10/1/2019 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 2.25% Salary Increases 5.00%, including inflation Investment Rate of Return 7.00% Retirement Age Mortality Experience-based table of rates that are specific to the type of eligibility condition The same versions of Pub-2010 Headcount-Weighted Mortality Tables as used by the Florida Reitrement 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. 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 See notes to basic financial statements. 70 Fiscal year ending September 30, Annual Money-Weighted Rate of Return, Net of Investment Expense 2021 21.63% 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% MIAMI SHORES VILLAGE, FLORIDA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF INVESTMENT RETURNS GENERAL EMPLOYEES' RETIREMENT SYSTEM See notes to basic financial statements. 71 Reporting fiscal year ending September 30,2021 2020 2019 2018 2017 2016 2015 Measurement fiscal year ending September 30,2020 2019 2018 2017 2016 2015 2014 Total Pension Liability Service Cost 826,391$ 737,909$ 686,704$ 660,242$ 536,463$ 554,721$ 672,275$ Interest 2,306,113 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 Changes of Assumptions 795,173 - - (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) Other 11,359 (235,974) 69,509 70,382 65,088 - 113,175 Net Change in Total Pension Liability 2,479,179 351,740 566,158 1,693,758 1,844,885 1,102,577 1,406,663 Total Pension Liability - Beginning 30,634,478 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 Position Contributions - Employer (from Village)808,455$ 1,116,211$ 1,165,400$ 1,105,854$ 1,122,197$ 1,249,668$ 1 1,207,161$ Contributions - Employer (from State)105,165 214,608 3 99,702 100,575 95,281 - 2 173,561 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) (39,391) Net Change in Plan Fiduciary Net Position 2,014,370 15,554 2,625,584 2,900,253 2,125,962 276,423 1,535,033 Plan Fiduciary Net Position - Beginning 26,722,296 26,706,742 24,081,158 21,180,905 19,054,943 18,778,520 17,243,487 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 2,940,056$ 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% 1 2 3 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 CHANGES IN VILLAGE'S NET PENSION LIABILITY AND RELATED RATIOS POLICE OFFICERS' RETIREMENT SYSTEM (VILLAGE'S REPORTING) Includes receivable Employer contribution in the amount of $32,922 for fiscal year ending September 30, 2015. (as required by GASB Statement No. 68) State contributions for fiscal year ending September 30, 2015 were not received until after the end of the fiscal year (therefore not permitted to be used until next fiscal year). Two year's worth of state contributions were received in fiscal year ending September 30,2019 See notes to basic financial statements. 72 Fiscal year ending September 30,2021 2020 2019 2018 2017 2016 2015 2014 Total Pension Liability Service Cost 864,180$ 826,391$ 737,909$ 686,704$ 660,242$ 536,463$ 554,721$ 672,275$ Interest 2,327,492 2,306,113 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 (95,445) (34,466) 71,995 (1,142,939) 101,437 (51,582) (582,646) 5,315 Changes of Assumptions - 795,173 - - (303,810) 326,835 307,647 - Benefit Payments (1,455,900) (1,425,391) (2,437,760) (1,279,385) (950,094) (1,023,327) (941,093) (1,180,510) Other 13,865 11,359 (235,974) 69,509 70,382 65,088 - 113,175 Net Change in Total Pension Liability 1,654,192 2,479,179 351,740 566,158 1,693,758 1,844,885 1,102,577 1,406,663 Total Pension Liability - Beginning 33,113,657 30,634,478 30,282,738 29,716,580 28,022,822 26,177,937 25,075,360 23,668,697 Total Pension Liability - Ending (a)34,767,849$ 33,113,657$ 30,634,478$ 30,282,738$ 29,716,580$ 28,022,822$ 26,177,937$ 25,075,360$ Plan Fiduciary Net Position Contributions - Employer 1,336,493$ 808,455$ 1,116,211$ 1,165,400$ 1,105,854$ 1,122,197$ 1,249,668$ 1 1,207,161$ Contributions - Employer (from State)110,178 105,165 214,608 3 99,702 100,575 95,281 - 2 173,561 Contributions - Member 271,555 264,605 249,510 231,040 210,630 191,425 180,728 205,660 Net Investment Income 6,252,510 2,347,637 936,089 2,464,134 2,495,997 1,818,553 (201,097) 1,168,552 Benefit Payments (1,455,900) (1,425,391) (2,437,760) (1,279,385) (950,094) (1,023,327) (941,093) (1,180,510) Administrative Expense (82,819) (86,101) (63,104) (55,307) (62,709) (78,167) (11,783) (39,392) Net Change in Plan Fiduciary Net Position 6,432,017 2,014,370 15,554 2,625,584 2,900,253 2,125,962 276,423 1,535,032 Plan Fiduciary Net Position - Beginning 28,736,666 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) 35,168,683$ 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)(400,834)$ 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 101.15%86.78%87.23%88.19%81.04%75.58%72.79%74.89% Covered Payroll 3,017,278 2,940,056$ 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 -13.28%148.87%141.12%139.30%240.80%321.68%354.72%275.56% 1 2 3 This schedule is presented to illustrate the requirement to show information for 10 years. However, until a full 10-year trend is compiled, pension plans should present information for those years for which information is available. (as required by GASB Statement No. 67) MIAMI SHORES VILLAGE, FLORIDA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF CHANGES IN VILLAGE'S NET PENSION LIABILITY AND RELATED RATIOS POLICE 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 $32,922 for fiscal year ending September 30, 2015. Two years' worth of State contributions were received in fiscal year ending September 30, 2019. See notes to basic financial statements. 73 Fiscal Year Actuarially Contribution Actual Contribution Ending Determined Actual Deficiency Covered as a % of September 30,Contribution Contribution (Excess) Payroll3 Covered Payroll 2021 1,336,493$ 1,432,806$ (96,313)$ 3,017,278$ 47.49% 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 6.00%, 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 $258,100 was used to satisfy the Village’s contribution requirement for fiscal year ending September 30, 2020. Actuarial Cost Method Notes to the Schedule of Contributions October 1, 2019 Actuarially determined contribution rates are calculated as of October 1, which is two years prior to the end of the fiscal year in which contributions are reported. Entry Age Normal Level Dollar, Closed 5-year smoothed market All actives are assumed to retire when first eligible for Normal Retirement. The rate of retirement is 1% for each year of eligibility for Early Retirement. This schedule is presented to illustrate the requirement to show information for 10 years.However, until a full 10-year trend is compiled, pension plans should present information for those years for which information is available. 20 years 2.25% 7.00% The same versions of Pub-2010 Headcount-Weighted Mortality Tables as used by the Florida Reitrement System (FRS) in their July 1, 2019 actuarial valuation (with mortality improvements projected to all future years after 2010 using Scale MP-2018). Florida Statutes Chapter 112.63(1)(f) mandates the use of mortality tables from one of the two most recently published FRS actuarial valuation reports. See notes to basic financial statements. 74 Fiscal Year Actuarially Contribution Actual Contribution Ending Determined Actual Deficiency Covered as a % of September 30,Contribution Contribution (Excess) Payroll Covered Payroll 2021 1,336,493$ 1,432,806$ (96,313) 3,017,278$ 47.49% 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 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). 6.00%, 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 2.25% 7.00% Actuarial Cost Method Entry Age Normal 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. The same versions of PUB-2010 Headcount-Weighted Mortality Tables as used by the Flordia Retirement System (FRS) in their July 1, 2019 actuarial valuation for Special Risk class members (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. 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 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, 2019 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. 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 $32,922 for fiscal year ending September 30, 2015. (as required by GASB Statement No. 67) See notes to basic financial statements. 75 Fiscal year ending September 30, Annual Money-Weighted Rate of Return, Net of Investment Expense 2021 21.19% 2020 8.44% 2019 3.33% 2018 9.83% 2017 11.22% 2016 8.97% 2015 -0.90% 2014 6.30% 2013 9.48% 2012 11.52% MIAMI SHORES VILLAGE, FLORIDA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF INVESTMENT RETURNS POLICE OFFICERS' RETIREMENT SYSTEM See notes to basic financial statements. 76 Total OPEB Liability:2021 2020 2019 2018 Service cost 39,045$ 42,514$ 43,470$ 48,122$ Interest 15,522 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 2,425 (167,258) (16,935) (20,041) Benefit payments (21,661) (40,376) (36,994) (91,579) Net Change in total OPEB liability 35,331 (120,032) 12,932 (88,813) Total OPEB liability- beginning 536,230 656,262 643,330 732,143 Total OPEB liability- ending 571,561$ 536,230$ 656,262$ 643,330$ Covered-employee payroll 7,327,367$ 6,004,403$ 6,190,210$ 5,980,879$ Total OPEB liability as a percentage of covered payroll 7.80%8.93%10.60%10.76% 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. There are no plan assets accumulated in a trust that meets the critereia in paragraph 4 of GASB Statement No. 75. MIAMI SHORES VILLAGE, FLORIDA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF CHANGES IN TOTAL OPEB LIABILITY AND RELATED RATIOS SEPTEMBER 30, 2021 See notes to basic financial statements. 77 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. 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. 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. MIAMI SHORES VILLAGE COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS SEPTEMBER 30, 2021 Special Revenue Funds Local Law Brockway Transportation Option Enforcement General Memorial Surtax Gas Tax Training Trust Expansion Total ASSETS Cash and cash equivalents 564,959$ 478,786$ 30,159$ 935,124$ 515,273$ 2,524,301 Accounts receivable, net 119,125 26,006 129 - - 145,260 Total assets 684,084$ 504,792$ 30,288$ 935,124$ 515,273$ 2,669,561$ LIABILITIES AND FUND BALANCES Liabilities: Accounts payable and accrued liabilities 5,264 1,824 - 428,425 - 435,513 Total liabilities 5,264 1,824 - 428,425 - 435,513 Fund balances: Restricted 678,820 434,517 30,288 506,699 515,273 2,165,597 Assigned - 68,451 - - - 68,451 Total fund balances 678,820 502,968 30,288 506,699 515,273 2,234,048 Total liabilities and fund balances 684,084$ 504,792$ 30,288$ 935,124$ 515,273$ 2,669,561$ See notes to basic financial statements. 78 MIAMI SHORES VILLAGE COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS SEPTEMBER 30, 2021 Debt Service Capital Projects Total Capital Charter Nonmajor Improvement High School Governmental GO Bonds Fund Construction Total Funds ASSETS Cash and cash equivalents 1,215,013$ 1,275,261$ -$ 1,275,261$ 5,014,575$ Accounts receivable, net 1,056 - - - 146,316 Total assets 1,216,069$ 1,275,261$ -$ 1,275,261$ 5,160,891$ LIABILITIES AND FUND BALANCES Liabilities: Accounts payable - 9,860 - 9,860 445,373 Total liabilities - 9,860 - 9,860 445,373 Fund balances: Restricted 1,216,069 - - - 3,381,666 Committed - 1,265,401 - 1,265,401 1,265,401 Assigned - - - - 68,451 Total fund balances 1,216,069 1,265,401 - 1,265,401 4,715,518 Total liabilities and fund balances 1,216,069$ 1,275,261$ -$ 1,275,261$ 5,160,891$ See notes to basic financial statements. 79 MIAMI SHORES VILLAGE COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2021 Special Revenue Funds Local Law Brockway Transportation Option Enforcement General Memorial Surtax Gas Tax Training Trust Expansion Total REVENUES Fees and fines -$ -$ 1,103$ -$ -$ 1,103$ Licenses and permits - - - 39,142 - 39,142 Intergovernmental 496,027 343,808 - - - 839,835 Grants contributions and donations - - - 10,860 14,798 25,658 Investment earnings 328 462 - 544 1,350 2,684 Total revenues 496,355 344,270 1,103 50,546 16,148 908,422 EXPENDITURES Current: Public safety - - - 8,267 - 8,267 Public works 135,711 244,205 - - - 379,916 Culture and recreation - - - 12,129 6,017 18,146 Capital outlay 20,857 44,430 - - 244,378 309,665 Total expenditures 156,568 288,635 - 20,396 250,395 715,994 Excess (deficiency) of revenues over expenditures 339,787 55,635 1,103 30,150 (234,247) 192,428 OTHER FINANCING SOURCES (USES) Transfers in - - - 5,421 - 5,421 Total other financing sources and uses - - - 5,421 - 5,421 Net change in fund balances 339,787 55,635 1,103 35,571 (234,247) 197,849 Fund balances - beginning 339,033 447,333 29,185 471,128 749,520 2,036,199 Fund balances - ending 678,820$ 502,968$ 30,288$ 506,699$ 515,273$ 2,234,048$ See notes to basic financial statements. 80 MIAMI SHORES VILLAGE COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2021 Debt Service Capital Projects Total Capital Charter Nonmajor Improvement High School Governmental GO Bonds Fund Construction Total Funds REVENUES Property taxes 456,824$ -$ -$ -$ 456,824$ Fees and fines - - - - 1,103 Licenses and permits - - - - 39,142 Intergovernmental - - - - 839,835 Grants contributions and donations - - - - 25,658 Investment earnings 1,514 2,102 - 2,102 6,300 Total revenues 458,338 2,102 - 2,102 1,368,862 EXPENDITURES Current: General government 5,000 - - - 5,000 Public safety - - - - 8,267 Public works - - - - 379,916 Culture and recreation - - 2,367 2,367 20,513 Debt Service Principal 331,400 - - - 331,400 Interest and other charges 115,349 - - - 115,349 Capital outlay - 533,984 - 533,984 843,649 Total expenditures 451,749 533,984 2,367 536,351 1,704,094 Excess (deficiency) of revenues over expenditures 6,589 (531,882) (2,367) (534,249) (335,232) OTHER FINANCING SOURCES (USES) Transfers in - 354,550 - 354,550 359,971 Transfers out - - (5,421) (5,421) (5,421) Total other financing sources and uses - 354,550 (5,421) 349,129 354,550 Net change in fund balances 6,589 (177,332) (7,788) (185,120) 19,318 Fund balances - beginning 1,209,480 1,442,733 7,788 1,450,521 4,696,200 Fund balances - ending 1,216,069$ 1,265,401$ -$ 1,265,401$ 4,715,518$ See notes to basic financial statements. 81 MIAMI SHORES VILLAGE COMBINING BALANCE SHEET FUND BALANCES - BUDGET AND ACTUAL NONMAJOR GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2021 Special Revenue Funds Transportation Surtax Local Option Gas Tax Variance with Variance with Final Budget Final Budget Actual Positive Actual Positive Original Final Amounts (Negative)Original Final Amounts (Negative) REVENUES Property Taxes -$ -$ -$ -$ -$ -$ -$ -$ Intergovernmental 437,500 437,500 496,027 58,527 336,825 336,825 343,808 6,983 Investment earnings 1,400 1,400 328 (1,072) 1,900 1,900 462 (1,438) Miscellaneous - - - - - - - - Total revenues 438,900 438,900 496,355 57,455 338,725 338,725 344,270 5,545 EXPENDITURES Current: Public works 234,388 234,388 135,711 98,677 279,670 279,670 244,205 35,465 Capital outlay 204,512 204,512 20,857 183,655 160,000 257,000 44,430 212,570 Total expenditures 438,900 438,900 156,568 282,332 439,670 536,670 288,635 248,035 Excess (deficiency) of revenues over expenditures - - 339,787 339,787 (100,945) (197,945) 55,635 253,580 Appropriation of fund balance - - - - 100,945 197,945 - 197,945 Net change in fund balances 339,787 55,635 Fund balances - beginning 339,033 447,333 Fund balances - ending 678,820$ 502,968$ Budgeted Amounts Budgeted Amounts See notes to basic financial statements. 82 MIAMI SHORES VILLAGE COMBINING BALANCE SHEET FUND BALANCES - BUDGET AND ACTUAL NONMAJOR GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2021 Debt Service Fund Capital Improvement Fund Variance with Variance with Final Budget Final Budget Actual Positive Actual Positive Original Final Amounts (Negative)Original Final Amounts (Negative) REVENUES Property taxes 451,180$ 451,180$ 456,824$ 5,644$ -$ -$ -$ -$ Investment earnings 3,000 3,000 1,514 (1,486) - - 2,102 2,102 Total revenues 454,180 454,180 458,338 4,158 - - 2,102 2,102 EXPENDITURES Current: General government 8,000 8,000 5,000 3,000 - - - - Debt service: Principal 331,400 331,400 331,400 - - - - - Interest and other charges 114,780 114,780 115,349 (569) - - - - Capital outlay - - - - 161,975 1,384,274 533,984 850,290 Total expenditures 454,180 454,180 451,749 2,431 161,975 1,384,274 533,984 850,290 Excess (deficiency) of revenues over expenditures - - 6,589 6,589 (161,975) (1,384,274) (531,882) 852,392 OTHER FINANCING SOURCES (USES) Transfers in - - - - 161,975 354,550 354,550 - Total other financing sources and uses - - - - 161,975 354,550 354,550 - Appropriate of fund balance - - - - - 1,029,724 - 1,029,724 Net change in fund balances 6,589 (177,332) Fund balances - beginning 1,209,480 1,442,733 Fund balances - ending 1,216,069$ 1,265,401$ Budgeted Amounts Budgeted Amounts See notes to basic financial statements. 83 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. MIAMI SHORES VILLAGE STATEMENT OF NET POSITION INTERNAL SERVICE FUNDS SEPTEMBER 30, 2021 Risk Fleet Management Maintenance Fund Fund Total ASSETS Current assets: Cash and cash equivalents 911,306$ 1,649,745$ 2,561,051$ Accounts receivable, net 6,620 - 6,620 Inventories - 35,519 35,519 Prepaid Expenses 220,548 - 220,548 Total current assets 1,138,474 1,685,264 2,823,738 Non-current assets: Capital assets: Capital assets not being depreciated - 7,127 7,127 Capital assets being depreciated, net - 1,920,743 1,920,743 Total non-current assets - 1,927,870 1,927,870 Total assets 1,138,474$ 3,613,134$ 4,751,608$ DEFERRED OUTLOWS OF RESOURCES Pension - 37,758 37,758 Other post employment benefits (OPEB)- 452 452 Total deferred outflows of resources - 38,210 38,210 LIABILITIES Current Liabilities: Accounts payable and accrued liabilities 6,500 13,008 19,508 Compensated absences - 7,938 7,938 Total current liabilities 6,500 20,946 27,446 Non-current liabilities: Compensated absences - 23,813 23,813 Net pension liability - 65,000 65,000 OPEB liability - 6,074 6,074 Total non-current liabilities - 94,887 94,887 Total liabilities 6,500 115,833 122,333 DEFERRED INFLOWS OF RESOURCES Pension - 5,447 5,447 Other post employment benefits (OPEB)- 1,658 1,658 Total deferred inflows of resources - 7,105 7,105 NET POSITION Invested in capital assets, net of related debt - 1,927,870 1,927,870 Assigned - 370,000 370,000 Unassigned 1,131,974 1,230,536 2,362,510 Total net position 1,131,974$ 3,528,406$ 4,660,380$ See notes to basic financial statements. 84 MIAMI SHORES VILLAGE STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION PROPRIETARY FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2021 Risk Fleet Management Maintenance Fund Fund Total REVENUES Charges for services 958,558$ 1,354,774$ 2,313,332$ Total operating revenues 958,558 1,354,774 2,313,332 OPERATING EXPENSES Personal services - 243,985 243,985 Utilities - 16,556 16,556 Repairs and maintenance 61,077 210,635 271,712 Administrative expenses 1,702 415,725 417,427 Insurance claims and expenses 864,211 99,522 963,733 Depreciation - 330,749 330,749 Total Operating expenses 926,990 1,317,172 2,244,162 Operating income (loss)31,568 37,602 69,170 NON-OPERATING REVENUES (EXPENSES) Interest and investment revenue 1,505 1,463 2,968 Operating grants and contributions 6,000 - 6,000 Total non-operating revenue (expenses)7,505 1,463 8,968 Income (loss) before contributions and transfers 39,073 39,065 78,138 Transfers out (85,325) - (85,325) Change in net position (46,252) 39,065 (7,187) Total net position - beginning 1,178,226 3,489,341 4,667,567 Total net position - ending 1,131,974$ 3,528,406$ 4,660,380$ See notes to basic financial statements. 85 Risk Fleet Management Maintenance Fund Fund Total Cash flows from operating activities: Cash received from customers, governments and other funds 961,961$ 1,354,774$ 2,316,735$ Cash paid to suppliers (957,005) (769,572) (1,726,577) Cash paid for employees - (249,696) (249,696) Net cash provided by (used in) operating activities 4,956 335,506 340,462 Cash flows from non-capital financing activities: Transfers out (85,325) - (85,325) Net cash provided by (used in) non-capital financing activities (85,325) - (85,325) Cash flows from capital related financing activities: Acquisition and construction of capital assets - (145,261) (145,261) Capital contributions 6,000 - 6,000 Net cash provided by (used in) capital and related financing activities 6,000 (145,261) (139,261) Cash flows from investing activities: Interest and other income 1,505 1,463 2,968 Net cash provided by (used in) investing activities 1,505 1,463 2,968 Net increase (decrease) in cash and cash equivalents (72,864) 191,708 118,844 Cash and cash equivalents, October 1 984,170 1,458,037 2,442,207 Cash and cash equivalents, September 30 911,306$ 1,649,745$ 2,561,051$ Reported in statement of net position as follows: Cash and cash equivalents 911,306$ 1,649,745$ 2,561,051$ 911,306$ 1,649,745$ 2,561,051$ Reconciliation of operating income to net cash provided by operating activities: Operating income (loss)31,568$ 37,602$ 69,170$ Adjustments to reconcile operating income to net cash provided by operating activities: Depreciation - 330,749 330,749 Change in assets and liabilities: (Increase) decrease in: Accounts receivable 3,403 - 3,403 Inventories - (10,720) (10,720) Prepaids (13,479) - (13,479) Other assets - - - Deferred outflows of resources for pension - (16,729) (16,729) Increase (decrease) in: Accounts payable and accrued liabilities (16,536) (15,382) (31,918) Compensated absences - 3,092 3,092 OPEB liability - 6,074 6,074 Unearned revenues - - - Net pension liability - 4,729 4,729 Deferred inflows of resources for pension - (3,909) (3,909) Total adjustments (26,612) 297,904 271,292 Net cash provided by (used in) operating activities 4,956$ 335,506$ 340,462$ Noncash capital related financing activities: Contributions -$ -$ -$ Total noncash capital related financing activities -$ -$ -$ MIAMI SHORES VILLAGE COMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2021 See notes to basic financial statements. 86 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. MIAMI SHORES VILLAGE COMBINING STATEMENT OF FIDUCIARY NET POSITION PENSION TRUST FUNDS SEPTEMBER 30, 2021 General Employee's Police Pension Pension Trust Trust Total ASSETS Cash and cash equivalents $ 250,556 $ 495,233 $ 745,789 Receivables: Accounts receivables - 110,178 110,178 Interest and dividends 67,129 130,447 197,576 Total receivables 67,129 240,625 307,754 Investments: Mutual funds – equity 8,685,669 13,048,612 21,734,281 Common stock 3,998,137 7,879,073 11,877,210 Corporate bonds 3,977,324 7,577,979 11,555,303 U.S. government securities 451,921 1,189,686 1,641,607 Mortgage backed securities 1,783,383 3,579,715 5,363,098 Foreign stock 470,183 926,426 1,396,609 Foreign bonds 42,749 73,283 116,032 Municipal bonds 84,057 158,051 242,108 Total Investments 19,493,423 34,432,825 53,926,248 Total assets $ 19,811,108 $ 35,168,683 $ 54,979,791 NET POSITION Net position for pension benefits $ 19,811,108 $ 35,168,683 $ 54,979,791 See notes to basic financial statements. 87 MIAMI SHORES VILLAGE COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION PENSION TRUST FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2021 General Employee's Police Pension Pension Trust Trust Total ADDITIONS Contributions: Employer 454,695$ 1,336,493$ 1,791,188$ Plan members 231,206 271,555 502,761 State of Florida - 110,178 110,178 Total contributions 685,901 1,718,226 2,404,127 Investment earnings: Net appreciation in fair value of investments 2,950,174 5,013,018 7,963,192 Interest and dividiend income 819,793 1,376,856 2,196,649 Investment activity expense (86,035) (137,364) (223,399) Total net investment earnings 3,683,932 6,252,510 9,936,442 Total additions 4,369,833 7,970,736 12,340,569 DEDUCTIONS Pension benefits 1,342,454 1,455,900 2,798,354 Administrative expenses 44,194 82,819 127,013 Total deductions 1,386,648 1,538,719 2,925,367 Net increase 2,983,185 6,432,017 9,415,202 Beginning of year 16,827,923 28,736,666 45,564,589 End of year 19,811,108$ 35,168,683$ 54,979,791$ See notes to basic financial statements. 88 STATISTICAL SECTION 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 Governmental activities: Invested in capital assets, net of related debt 19,026,768$ 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$ Restricted 6,687,642 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 Unrestricted 5,876,297 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 Total governmental activities net assets 31,590,707 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 Business-type activities: Invested in capital assets, net of related debt 2,586,804 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 Restricted 269,100 - - 3,772,478 3,772,478 - Unrestricted 1,522,573 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 Total business-type activities net assets 4,378,477 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 Primary government: Invested in capital assets, net of related debt 21,613,572 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 Restricted 6,956,742 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 Unrestricted 7,398,870 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 Total primary government net assets 35,969,184$ 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$ Fiscal Year MIAMI SHORES VILLAGE, FLORIDA NET ASSETS BY COMPONENT FOR THE LAST TEN FISCAL YEARS (accrual basis of accounting) 89 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 Governmental activities: General Government 4,123,057$ 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$ Public Safety 7,741,150 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 Public Works 3,859,748 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 Culture and Recreation 3,105,811 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 Interest on debt 115,349 124,515 133,191 126,553 151,794 168,811 272,374 283,840 432,997 425,355 Total governmental activities expenses 18,945,115 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 Business-type activities: Solid Waste 2,875,443 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 Stormwater 206,141 282,149 279,259 201,904 224,695 237,712 193,174 165,537 180,702 175,761 Water & Wastewater 103,416 63,301 4,383,725 148,717 105,707 62,204 - - - - Total business-type activities expenses 3,185,000 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 Total primary government expenses 22,130,115 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 Program revenues: Governmental activities: Charges for services: General Government 2,222,726 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 Public Safety 2,290,601 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 Public Works 40,266 34,629 46,912 24,175 62,144 194,349 200,977 117,815 843,218 727,160 Culture and Recreation 978,267 650,093 1,442,519 1,577,949 1,356,565 1,388,906 1,568,844 1,436,999 1,375,506 1,293,788 Operating grants and contributions 739,700 717,036 815,658 816,300 801,908 798,312 816,380 784,430 87,368 170,234 Capital grants and contributions - - - - - - 35,564 474,079 35,564 47,447 Total governmental activities program revenues 6,271,560 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 Business-type activities: Charges for services: Solid Waste 3,255,247 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 Stormwater 571,984 479,125 245,805 245,407 244,936 245,269 244,805 244,107 248,132 252,420 Water & Wastewater 20,978 38,308 43,868 84,159 70,143 136,855 - - - Capital grants and contributions - - - - 556,382 - 672,381 - - - Total business-type activities program revenues 3,848,209 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 Total primary government program revenue 10,119,769$ 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$ MIAMI SHORES VILLAGE, FLORIDA CHANGES IN NET ASSETS FOR THE LAST TEN FISCAL YEARS (Continued) Fiscal Year 90 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 Net (expenses) revenue: Governmental activities (12,673,555)$ (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)$ Business-type activities 663,209 255,207 (4,364,117) 140,078 140,078 699,307 186,555 1,139,423 425,455 633,849 (12,010,346) (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) General revenues and other changes in net assets: Governmental activities: Property taxes 10,015,239 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 Public services tax 2,232,886 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 Intergovernmental 4,201,094 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 Miscellaneous 421,008 675,139 635,023 662,875 549,075 507,592 827,991 469,614 415,330 493,243 Investment income - unrestricted 27,133 128,434 277,431 115,869 60,740 26,210 29,568 20,670 32,015 61,071 Special item - gain (loss) on sale of asset (145,753) - - - - - 523,164 - - - Transfers 336,425 414,052 416,737 350,076 352,819 400,000 400,000 395,000 395,000 335,000 Total governmental activities 17,088,032 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 Business-type activities: Investment income 2,083 12,167 27,803 17,370 10,623 4,701 5,721 5,708 5,994 1,756 Other general revenues 757 - - - - - - - - - Transfers (336,425) (414,052) (416,737) (350,076) (352,819) (400,000) (400,000) (395,000) (395,000) (335,000) Total business-type activities (333,585) (401,885) (388,934) (332,706) (342,196) (395,299) (394,279) (389,292) (389,006) (333,244) Total primary government 16,754,447 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 Change in net assets: Governmental activities 4,414,477 2,539,400 1,438,343 (510,289) (1,291,320) 377,717 785,635 (825,288) 291,725 2,415,950 Business-type activities 329,624 (146,678) (4,753,051) (192,628) (202,118) (208,744) (207,724) 750,131 36,449 300,605 Total primary government 4,744,101$ 2,392,722$ (3,314,708)$ (702,917)$ (1,493,438)$ 168,973$ 577,911$ (75,157)$ 328,174$ 2,716,555$ MIAMI SHORES VILLAGE, FLORIDA CHANGES IN NET ASSETS (Continued) FOR THE LAST TEN FISCAL YEARS Fiscal Year 91 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 General fund: Reserved -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Unreserved - - - - - - - - - - Nonspendable *19,092 6,779 12,656 17,851 4,506 7,786 3,741 11,698 32,305 33,480 Restricted *- - - - - - - - - - Committed *- - - - - - 31,562 31,562 45,947 77,512 Assigned *863,000 - - - - - - - - - Unassigned *9,732,952 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 Total general fund 10,615,044$ 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$ All other governmental funds: Reserved -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Unreserved reported in: Special revenue funds - - - - - - - - - - Capital project funds - - - - - - - - - - Nonspendable *- 2,000 2,000 - 5,174 - 59,270 Restricted *4,120,790 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 Committed *1,265,401 1,442,733 1,646,587 830,632 768,966 581,630 578,434 649,494 611,766 955,728 Assigned *68,451 - - - - - - - - - Unassigned *(1,198,175) (3,357,706) (3,373,275) (3,323,252) (1,079,522) - - - - - Total all other governmental funds 4,256,467$ 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$ Fiscal Year MIAMI SHORES VILLAGE, FLORIDA FUND BALANCES FOR GOVERNMENTAL FUNDS FOR THE LAST TEN FISCAL YEARS 92 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 Revenues: Taxes 10,015,239$ 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$ Public services taxes 2,232,886 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 Licenses and permits 1,279,733 913,015 1,291,634 1,211,448 1,212,029 1,257,228 1,237,435 1,018,301 841,572 914,833 Intergovernmental 4,958,149 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 Grants, contributions and donations 25,658 - - - - - - - - - Charges for services 1,619,550 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 Fees and fines 325,274 1,000,705 441,823 489,247 696,709 517,648 613,743 629,524 858,753 1,955,837 Miscellaneous 366,701 675,139 664,688 662,875 549,075 507,592 827,991 555,417 415,330 493,243 Investment earnings 24,165 108,026 231,498 103,199 55,420 24,149 27,058 18,166 32,015 59,289 Total revenues 20,847,355 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 Expenditures: General Government 3,130,958 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 Public Safety 8,199,533 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 Public Works 2,134,157 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 Culture and Recreation 2,712,183 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 Capital outlay 1,586,472 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 Debt services: Principal 331,400 327,400 317,100 533,959 674,079 657,889 635,837 589,036 4,362,580 487,690 Interest and other charges 115,349 124,515 133,191 141,846 151,794 168,811 272,374 283,840 432,997 421,599 Total expenditures 18,210,052 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 (Deficiency) excesss of revenues over expenditures 2,637,303 (29,432) (255,156) (2,213,852) (1,372,707) (1,423,177) (309,302) (664,636) (4,418,124) 1,086,178 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 759,971 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 Transfer out (338,221) (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) Total other financing sources (uses)421,750 457,626 307,080 350,076 311,284 462,000 1,082,764 395,000 4,263,300 225,747 Net change in fund balances 3,059,053$ 428,194$ 51,924$ (1,863,776)$ (1,061,423)$ (961,177)$ 773,462$ (269,636)$ (154,824)$ 1,311,925$ Debt service as a percentage of noncapital expenditures 2.7%2.9%2.8%3.8%5.0%5.6%6.3%6.2%27.4%7.2% Fiscal Year MIAMI SHORES VILLAGE, FLORIDA CHANGES IN FUND BALANCES FOR GOVERNMENTAL FUNDS FOR THE LAST TEN FISCAL YEARS 93 Ad-Valorem Taxes Public Licenses Charges Fees and Investment Fiscal Year General Purpose Service Taxes and Permits Intergovernmental for Services Fines Miscellaneous Earnings Total 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 2021 9,558,415 2,232,886 1,240,591 1,209,673 1,619,550 271,110 342,191 16,035 16,490,451 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 94 Fiscal Year Total Total Total Ended Personal Centrally Assessed Direct Tax Market September 30,Property Property Assessed Value Rate Value 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 2021 1,233,170,132 21,921,504 2,215,825 1,257,307,461 8.2773 2,123,768,447 Source: Miami-Dade County Property Appraisal Office & Florida Department of Revenue. 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. 59.02% 55.94% 52.37% 51.87% 59.20% 57.39% 55.36% 53.26% 58.20% MIAMI SHORES VILLAGE, FLORIDA ASSESSED VALUE AND ACTUAL VALUE OF TAXABLE PROPERTY FOR THE LAST TEN FISCAL YEARS 57.67% Assessed Value as a percentage of Market Value 95 Fiscal Total Year Total Direct & Ended City Debt Direct County-Debt Overlapping September 30,Wide Service Rate Wide Service Fire Library School State Rates 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 2021 7.9000 0.3773 8.2773 4.6669 0.4780 2.4207 - 7.1290 0.7502 23.7221 (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 $1,000 of Taxable Assessed Valuation Tax rate limits: City 10.000 Mils County 10.000 Mils School 10.000 Mils State 10.000 Mils Source: Miami Dade County Finance Department, Tax Collector's Division Miami Shores Village County Special Districts MIAMI SHORES VILLAGE, FLORIDA PROPERTY TAX RATES DIRECT AND OVERLAPPING GOVERNMENTS (1) FOR THE LAST TEN FISCAL YEARS 96 Percentage Percentage Taxable of Total City Taxable of Total City Assessed Taxable Assessed Taxable Taxpayer Value Rank Value Value Rank Value Tropical Chevrolet, Inc.11,893,672$ 1 0.95%6,897,915$ 2 0.55% Shore Square Properties, LLC 9,150,702 2 0.73%6,575,898 3 0.53% Florida Power & Light Company 9,016,022 3 0.72%6,237,056 4 0.50% Northern Trust Bank ETAL TRS (Publix)8,833,992 4 0.70%6,900,000 1 0.55% Miami Shores Village 8,582,264 5 0.68% Carol Invest USA, Inc 4,940,224 6 0.39% 88 Biscayne Management LLC 4,118,687 7 0.33% Angelo Napolitano Est Of 4,000,000 8 0.32% DVS LLC 3,775,493 9 0.30%2,820,926 5 0.23% SMSB LLC 3,575,000 10 0.28% Frances B Everett 2,400,000 7 0.19% Wal Miami LLC 2,456,175 6 0.20% Omar Cassola 2,298,065 8 0.18% Norton L Barchan 2,044,679 9 0.16% Robert Ader & W 1,983,236 10 0.16% Total 67,886,056$ 5.40%40,613,950$ 3.26% MIAMI SHORES VILLAGE, FLORIDA PRINCIPAL PROPERTY TAX PAYERS CURRENT YEAR AND TEN YEARS AGO 2021 2012 97 Fiscal Year Total Levied Collections Ended for the Percentage in Subsequent Percentage September 30,Fiscal Year Amount of Levy Years Amount of Levy 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% 2021 9,932,729 9,563,900 96.3%25,207 9,558,415 96.2% Source: Miami Shores Village Finance Department and Miami-Dade County Property Appraisers Office. Collected within the Fiscal Year of the Levy Total collections to Date MIAMI SHORES VILLAGE, FLORIDA OPERATING PROPERTY TAX LEVIES AND COLLECTIONS FOR THE LAST TEN FISCAL YEARS 98 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 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% 2021 4,003,900 - 3,700,000 7,703,900 0.61%1.51% Governmental MIAMI SHORES VILLAGE, FLORIDA RATIOS OF OUTSTANDING DEBT BY TYPE FOR THE LAST TEN FISCAL YEARS 99 Percentage Amount Debt Applicable Applicable Governmental Unit Outstanding To City To City 701,809,370 Overlapping debt: Miami-Dade County, Florida (1)2,537,575$ 0.39%9,836$ Miami-Dade County Public Schools (2)912,173 0.36%3,247 Total overlapping debt 3,449,748$ 13,084 Miami Shores Village 4,004 100.00%4,004 Total direct and overlapping debt 3,453,752$ 17,087$ 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, 2021 (in thousands) 100 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 Debt limit 121,726,846$ 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$ Total net debt applicable to limit 4,003,900 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 Legal debt margin 117,722,946$ 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$ Total net debt applicable to the limit as a percentage of debt limit 3.29%3.76%4.35%4.97%5.74%6.62%7.65%8.60%9.20%9.86% Fiscal Year MIAMI SHORES VILLAGE, FLORIDA LEGAL DEBT MARGIN INFORMATION FOR THE LAST TEN FISCAL YEARS 101 Personal Per Income Capita Estimated (Thousand of Personal Unemployment Year Population (1)Dollars) Income (2)Rate (3) 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% 2021 10,817 510,952 47,236 6.0% 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 102 Percentage Percentage of Total County of Total County Employer Employees Rank Employment Employees Rank Employment Miami-Dade County Public Schools 33,477 1 1.89%48,571 1 3.73% Miami-Dade County, Florida 25,502 2 1.44%29,000 2 2.23% Federal Government 19,200 3 1.08%19,500 3 1.50% Florida State Government 17,100 4 0.97%17,100 4 1.31% University of Miami 12,818 5 0.72%16,000 5 1.23% Baptist Health South Florida 11,353 6 0.64%13,376 6 1.03% American Airlines 11,031 7 0.62%9,000 9 0.69% Jackson Health System 9,797 8 0.55%12,571 7 0.96% City of Miami 3,997 9 0.23%- - 0.00% Florida International University 3,534 10 0.20%8,000 10 0.61% Publix Super Markets - - 0.00%10,800 8 0.69% Total Civilian Labor Force Employment 1,769,657 Source: The Beacon Council (2015) & U.S. Census Bureau 2021 2012 MIAMI SHORES VILLAGE, FLORIDA PRINCIPAL EMPLOYERS LOCATED IN MIAMI-DADE COUNTY CURRENT YEAR AND TEN YEARS AGO 103 Function/Program 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 General Government: Administration: Full time 5 5 12 11 12 10 10 8 10 9 Part time 0.5 0 7 6 7 6 6 5 5 5 Finance: Full time 3 3 4 5 6 6 5 5 5 5 Part time - - - - - - - - - Public Works: Full time 42 42 42 43 44 43 39 43 41 40 Part time 1.5 1 1 1 1 1 1 - 1 - Culture and Recreation: Parks & Recreation: Full time 13 15 14 13 13 15 13 12 12 13 Part time 35 28 58 63 63 67 63 72 51 30 Library: Full time 4 4 4 4 4 4 4 2 3 3 Part time 4 5 6 7 6 6 6 8 7 6 Public Safety Building* Full time 5 4 Part time 9 7 Code Compliance* Full time 3 3 Part time - - Police Full time 44 47 48 48 46 42 40 43 43 44 Part time 1 3 3 3 3 4 4 4 3 3 Total 170 167 199 204 205 204 191 202 181 158 * 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 104 Function/Program 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 General Government: Finance: Number of lien searches processed 562 - - - - - - - - - Public Safety: Building: Number of building permits issued 2,788 - - - - - - - - - Code Compliance: Business Licenses issued 412 - - - - - - - - - Police: Number of arrests 137 - - - - - - - - - Number of calls for service 14,000 - - - - - - - - - Number of sworn law enforcement personnel 38 - - - - - - - - - Public Works: Garbage collected (tons)4,158 Recycling collected (tons)795 - - - - - - - - - Sidewalks repaired (square feet)1,275 - - - - - - - - - Trash collected (tons)164 - - - - - - - - - Culture and Recreation: Number of program participants 73,649 - - - - - - - - - Sources: Various Village Departments *Only FY2021 data available at this time Fiscal Year MIAMI SHORES VILLAGE, FLORIDA OPERATING INDICATORS BY FUNCTION FOR THE LAST TEN FISCAL YEARS 105 Function/Program 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 General Government: Village Hall 1 - - - - - - - - - Public Safety: Police: Police stations 1 - - - - - - - - - Police vehicles 61 - - - - - - - - - Public Works: Number of recycling/refuse collection trucks 14 - - - - - - - - - Culture and Recreation: Aquatic Playground 1 - - - - - - - - - Art in Public Places 6 - - - - - - - - - Basketball Courts 2 - - - - - - - - - Dog Park 1 - - - - - - - - - Golf Courses 1 - - - - - - - - - Libraries 1 - - - - - - - - - Parks*6 - - - - - - - - - Parks & Recreation Center(s)6 - - - - - - - - - Pickleball Court(s)4 - - - - - - - - - Racketball Court(s)1 - - - - - - - - - Swimming Pool(s)1 - - - - - - - - - Tennis Court(s)4 - - - - - - - - - Sources: Various Village Departments * Dog Park also included in Parks total **Only FY2021 data available at this time Fiscal Year MIAMI SHORES VILLAGE, FLORIDA CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM FOR THE LAST TEN FISCAL YEARS 106 COMPLIANCE SECTION 107 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, 2021, and the related notes to the financial statements, which collectively comprise the Village’s basic financial statements, and have issued our report thereon dated April 28, 2022. 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) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Village’s internal control. Accordingly, we do not express an opinion on the effectiveness of the Village’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. 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 financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Caballero Fierman Llerena & Garcia, LLP Caballero Fierman Llerena & Garcia, LLP Miami, Florida April 28, 2022 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 AUDITORS’ REPORT ON COMPLIANCE FOR THE MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE Honorable Mayor and Members of the Village Council Miami Shores Village, Florida Report on Compliance for the Major Federal Program We have audited the Miami Shores Village, Florida’s (the “Village”) compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on the Village’s major federal program for the fiscal year ended September 30, 2021. Village’s major federal program are identified in the summary of auditors’ results section of the accompanying schedule of findings and questioned costs. Management’s Responsibility Management is responsible for compliance with federal statutes, regulations, and the terms and conditions of its federal awards applicable to its federal programs. Auditors’ Responsibility Our responsibility is to express an opinion on compliance for the Village’s major federal program based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance 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 the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Those standards and the Uniform Guidance require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the Village’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion on compliance for the major federal program. However, our audit does not provide a legal determination of the Village’s compliance. Opinion on the Major Federal Program In our opinion, the Village, complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on the major federal program for the fiscal year ended September 30, 2021. Report on Internal Control over Compliance Management of the Village is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered the Village’s internal control over compliance with the types of requirements that could have a direct and material effect on the major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for the major federal program and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the Village’s internal control over compliance. 109 8950 SW 74th Court I Suite 1210 I Miami, FL 33156 T: 305.662.7272 I F: 305.662.4266 I CFLGCPA.COM Report on Internal Control over Compliance (Continued) A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose. Caballero Fierman Llerena & Garcia, LLP Caballero Fierman Llerena & Garcia, LLP Miami, Florida April 28, 2022 MIAMI SHORES VILLAGE, FLORIDA SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2021 Federal Grantor/Pass-Through Grantor/Program or Cluster Title Federal Assistance Listing Number Pass-Through Entity Identifying Number Total Federal Expenditures United States Department of Justice Pass through Florida Department of Law Enforcement COVID-19 Coronavirus Emergency Supplemental Funding Program 16.034 2020-CESF-DADE-3-C9-112 572$ COVID-19 Coronavirus Emergency Supplemental Funding Program 16.034 2021-CERF-DADE-1-5A-018 47,481 Total United States Department of Justice 48,053 United States Department of Treasury Pass through Miami-Dade County COVID-19 Coronavirus Relief Fund 21.019 N/A 442,255 Total United States Department of Treasury 442,255 United States Department of Homeland Security Pass through Florida Division of Emergency Management Disaster Grants - Public Assistance (Presidentially Declared Disasters)97.036 N/A 2,152,760 Total United States Department of Homeland Security 2,152,760 Total Expenditures of Federal Awards $ 2,643,068 The accompanying notes are an integral part of this schedule. 110 MIAMI SHORES VILLAGE, FLORIDA NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2021 111 NOTE 1. GENERAL The accompanying schedules of expenditures of federal awards (the “schedule”) includes the federal grant activity of the Miami Shores Village (the “Village”). For purposes of this schedule, federal awards include federal and state assistance received directly from a federal or state agency, as well as federal received indirectly by the Village from non-federal organizations. NOTE 2. BASIS OF PRESENTATION The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations, Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. The expenditures in the accompanying schedule are presented using the modified accrual basis of accounting. Under the modified accrual basis of accounting, expenditures are recognized when the Village becomes obligated for a payment as a result of the receipt of the related goods or services. NOTE 3. CONTINGENCIES The grant revenues received by the Village are subject to audit and adjustment. If any expenditures are disallowed by grantor agencies as a result of such an audit, any claim for reimbursement to the grantor agencies would become a liability of the Village. In the opinion of management, all grant expenditures are in compliance with the terms of the grant agreements and applicable federal laws and regulations. NOTE 4. INDIRECT COST RATE The Village has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. NOTE 5. PRIOR YEAR EXPENDITURES The current year schedule includes prior fiscal year expenditures for the program noted below. Although the expenditures were incurred in prior fiscal years, the funding approvals for the expenditures were obtained in the current fiscal year. Federal Grantor Federal Assistance Listing Number Pass-Through Entity Identifying Number Prior Year Expenditures Reported in FY2021 Disaster Grants - Public Assistance (Presidentially Declared Disasters)97.036 N/A 2,152,760$ MIAMI SHORES VILLAGE, FLORIDA SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2021 SECTION I - SUMMARY OF AUDITORS’ RESULTS Financial Statements Type of auditors' report issued: Internal control over financial reporting: Material weakness(es) identified?Yes X No Significant deficiencies identified?Yes X None reported Noncompliance material to financial statements noted?Yes X No Federal Awards Internal control over major program: Material weakness(es) identified?Yes X No Significant deficiencies identified?Yes X None Reported Type of auditors’ report issued on compliance for major federal program: Any audit findings disclosed that are required to be reported in accordance with 2 CFR 200.516(a)?Yes X No Identification of major federal program: Assistance Listing No. 97.036 Dollar threshold used to distinguish between Type A $750,000 and Type B programs: Auditee qualified as a low-risk auditee?Yes X No Unmodified Opinion Unmodified Opinion Name of Federal Program or Cluster Disaster Grants - Public Assistance (Presidentially Declared Disasters) 112 113 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 financial statements of Miami Shores Village, Florida (the “Village”), as of and for the fiscal year ended September 30, 2021, and have issued our report thereon dated April 28, 2022. 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; the audit requirements of Title 2 U.S. Code of federal regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) 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; Independent Auditors’ Report on Compliance for the Major Federal Program and Report on internal Control over Compliance; Schedule of Findings and Questioned Costs; 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 and schedule, which are dated April 28, 2022, 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, requires us to apply appropriate procedures and communicate the results of our determination as to whether or not the Village 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. 114 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 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 April 28, 2022 115 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, 2020 to September 30, 2021. 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, 2020 to September 30, 2021. 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 April 28, 2022