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2022A FLORIDA MUNICIPALITY FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2022 ANNUAL COMPREHENSIVE FINANCIAL REPORT MIAMI SHORES VILLAGE, FLORIDA ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2022 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 1-3 Managements’ Discussion and Analysis (Required Supplementary Information) 4-15 Basic Financial Statements: Government-Wide Financial Statements: Statement of Net Position 16 Statement of Activities 17 Fund Financial Statements: Balance Sheet – Governmental Funds 18 Reconciliation of the Balance Sheet to the Statement of Net Position – Governmental Funds 19 Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds 20 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities 21 Statement of Net Position – Proprietary Funds 22 Statement of Revenues, Expenses, and Changes in Fund Net Position – Proprietary Funds 23 Statement of Cash Flows – Proprietary Funds 24 Statement of Fiduciary Net Position – Fiduciary Funds 25 Statement of Changes in Fiduciary Net Position 26 Notes to the Basic Financial Statements 27-64 Required Supplementary Information: Budgetary Comparison Schedule: General Fund 65-66 Notes to Budgetary Comparison Schedule 67 Schedule of Changes in Village’s Net Pension Liability and Related Ratios – General Employees’ Retirement System (Village’s Reporting) 68 Schedule of Changes in Village’s Net Pension Liability and Related Ratios – General Employees’ Retirement System (Plan’s Reporting) 69 Schedule of Contributions – General Employee’s Retirement System (Village’s Reporting) 70 Schedule of Contributions – General Employee’s Retirement System (Plan’s Reporting) 71 Schedule of Investment Returns – General Employee’s Retirement System 72 Schedule of Changes in Village’s Net Pension Liability and Related Ratios – Police Officers’ Retirement System (Village’s Reporting) 73 Schedule of Changes in Village’s Net Pension Liability and Related Ratios – Police Officers’ Retirement System (Plans’ Reporting) 74 Schedule of Contributions – Police Officer’s Retirement System (Village’s Reporting) 75 Schedule of Contributions – Police Officer’s Retirement System (Plan’s Reporting) 76 Schedule of Investment Returns – Police Officer’s Retirement System 77 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 78 Supplementary Information: Combining and Individual Financial Statements and Schedules: Combining Balance Sheet – Nonmajor Governmental Funds 79-80 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances – Nonmajor Governmental Funds 81-82 Schedules of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual Nonmajor Governmental Funds 83-84 Internal Service Funds: Combining Statement of Net Position 85 Combining Statement of Revenues, Expenses and Changes in Fund Net Position 86 Combining Statement of Cash Flows 87 Fiduciary Funds: Combining Statement of Fiduciary Net Position – Pension Trust Funds 88 Combining Statement of Changes in Fiduciary Net Position – Pension Trust Funds 89 III. STATISTICAL SECTION (Unaudited) Net Position by Component 90 Changes in Net Position 91-92 Fund Balances for Governmental Funds 93 Changes in Fund Balances of Governmental Funds 94 General Governmental and Excise Tax Revenues by Source 95 Assessed Value and Actual Value of Taxable Property 96 Property Tax Rates Direct and Overlapping Governments 97 Principal Property Taxpayers – Current Year and Nine Years Ago 98 Operating Property Tax Levies and Collections 99 Ratios of Outstanding Debt By Type 100 Direct and Overlapping Governmental Activities Debt 101 Legal Debt Margin Information 102 Demographic and Economic Statistics 103 Principal Employers Located in Miami Dade County – Current Year and Nine Years Ago 104 Village Employees by Function/Program 105 Operating Indicators by Function 106 Capital Asset Statistics by Function/Program 107 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 108-109 Schedule of Findings and Responses 110 Management Letter Required by Section 10.550 of the Rules of the Auditor General of the State of Florida 111-113 Independent Accountants’ Report on Compliance Pursuant to Section 218.415 Florida Statutes 114 INTRODUCTORY SECTION ‐i‐  October 31, 2023 The Mayor and Members of the Village Council 10050 Northeast Second Avenue Miami Shores, Florida 33138 Subject: FY 2021-22 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, 2022. 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 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 reasonable assurance that the financial statements of the Village for the fiscal year ended September 30, 2022 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      FY2021-22 Financial Report October 31, 2023 -ii- 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, 2022, 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 115th 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 of $54,189, and median household income at $135,055, which is 114% more than the county, 100% more than the state and 79% more than the nation. 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, 2022, no legally separate authorities or agencies operated under the auspices of the Village; therefore, no additional financial information will be incorporated into these statements.      FY2021-22 Financial Report October 31, 2023 -iii- 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 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 $6.1 million reflected in fiscal year 2022. 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 4.8% for fiscal year 2022 and 16.5% for fiscal year 2023. It is anticipated that this trend will continue in the near future. Management continues to make capital improvements that will maintain and further enhance the lifestyle of the residents and improve services. 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 2022 is $11.1 million. Included in the $11.1 million of general fund unassigned fund balance is a pending receivable of $1.2 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,      FY2021-22 Financial Report October 31, 2023 -iv- assurance that these objectives are met. The concept of reasonable assurance recognizes that (1) the cost of a control should not exceed the benefits likely to be derived and (2) the valuation of costs and benefits requires estimates and judgments by management. As a recipient of federal, state and local financial assistance, the government is also responsible for ensuring that an adequate internal control structure is in place to ensure and document compliance with applicable laws and regulations related to these programs. This internal control structure is subject to periodic evaluation by management. In addition, the Village maintains extensive budgetary controls. The objective of these controls is to ensure compliance with policy and implementation procedures embodied in the annual appropriated budget approved by Village Council. The level of budgetary control (i.e. the level at which expenditures cannot legally exceed the appropriated amount) is the department level within each fund. The Village also maintains an encumbrance accounting system. The Village’s accounting system is organized on a fund basis. A fund is defined as an independent fiscal and accounting entity with a self-balancing set of accounts. The types of funds used are generally determined by the Village Council, upon the recommendations of the Village Manager and the Finance Director, which are based upon established and accepted accounting policies and procedures as well as the number of funds required. Budgetary Control Florida State Statute §200.065 requires that all municipal governments prepare, approve, adopt and execute an annual budget for such funds as may be required by law or by sound fiscal practices. In compliance with this Statute as well as other state regulatory items, the Village adopts an annual operating budget into which funds are either formally appropriated by resolution or non-appropriated in nature, depending upon the fund (i.e. – general, special revenue, debt service, enterprise, internal service or trust funds). However, in practice, all funds 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;      FY2021-22 Financial Report October 31, 2023 -v- however, changes to the bottom line of department or fund totals require council approval and are executed by resolution. Budget to actual comparisons are provided in this report for each individual governmental fund for which an appropriated annual budget has been adopted. As shown by the statements and schedules included in the financial section of this report, the Village continues to meet its responsibility for sound financial management. LONG-TERM FINANCIAL PLANNING Management maintains financial stability with fiscal management controls by constantly reviewing and monitoring 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 has a coherent and cohesive plan as to how the Village should progress in the coming years. The strategic plan was 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 FY23. 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 has received 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, 2021. 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. vii Mayor 6DQGUD+DUULV Vice Mayor 'DQLHO0DULQEHUJ CouncilmHPEHU $OLFH%XUFK CouncilPHPEHU &U\VWDO:DJDU CouncilPHPEHU .DWLD6DLQW)OHXU MIAMI SHORES V ILLAGE, FLORIDA LIST OF ELECTED OFFICIALS SEPTEMBER 30, 202 viii MIAMISHORES VILLAGE, FLORIDA LIST OF APPOINTED OFFICIALSSEPTEMBER 30, 202 APPOINTED OFFICIALS Village Manager......................................................................................................(VPRQG.6FRWW Village Clerk............................................................................................Ysabely Rodriguez, CMC Village Attorney..............................................................................................Sarah Johnston, ESQ. DEPARTMENT HEADS Building Director......................................................................................................Ismael Naranjo Neighborhood Services Director .............................................................................Lazaro Remond Finance Director.................................................................................Holly Hugdahl, CPA, CGMA Library Director...................................................................................................... Michelle Brown Planning, Zoning & Resiliency Director .................................................... Claudia Hasbun, AICP Chief of Police ................................................................................................................David Golt Public Works Director..............................................................................................&KULV0LUDQGD Recreation Director...................................................................................................Angela Dorney VILLAGE AUDITORS Caballero Fierman/OHUHQD *DUFLD,LLP Accountants and Advisors ix MIAMISHORES VILLAGE, FLORIDA ORGANIZATION CHART SEPTEMBER 30, 202 MAYOR & COUNCIL MAYOR - 6$1'5$+$55,6 VICE MAYOR - '$1,(/0$5,1%(5* COUNCILM(0%(5 - $/,&(%85&+ COUNCILM(0%(5 - &5<67$/:$*$5 COUNCILM(0%(5 - .$7,$6$,17)/(85 VILLAGE CLERK YSABELY RODRIGUEZ,CMC VILLAGE ATTORNEY SARAH JOHNSTON, ESQ. VILLAGE MANAGER (6021'.6&277 BUILDING DIRECTOR ISMAEL NARANJO FINANCE DIRECTOR HOLLY HUGDAHL, CPA, CGMA PLANNING, ZONING & RESILIENCY DIRECTOR CLAUDIA HASBUN,AICP PUBLIC WORKS DIRECTOR &+5,60,5$1'$ CHIEF OF POLICE DAVID GOLT RECREATION DIRECTOR ANGELA DORNEY NEIGHBORHOOD SERVICES 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 Audit of the Financial Statements Opinions We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of Miami Shores Village, Florida (the “Village”) as of and for the fiscal year ended September 30, 2022, and the related notes to the financial statements, which collectively comprise the Village’s basic financial statements as listed in the table of contents. 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, 2022, 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. Basis for Opinions 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. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Village and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for 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. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Village’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. Auditors’ Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. 2    8950 SW 74th Court I Suite 1210 I Miami, FL 33156  T: 305.662.7272 I F: 305.662.4266 I CFLGCPA.COM In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards, we:  Exercise professional judgment and maintain professional skepticism throughout the audit.  Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.  Obtain an understanding of internal control relevant to the audit 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, no such opinion is expressed.  Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.  Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Village’s ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit. Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis and budgetary comparison, Pension, and Other Post-Employment Benefits Schedules on pages 4–15 and 65–78 be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Supplementary 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 accompanying combining and individual nonmajor fund financial statements are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The 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 are fairly stated, in all material respects, in relation to the basic financial statements as a whole. Other Information Management is responsible for the other information included in the annual report. The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditor’s report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon. In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report. 3    8950 SW 74th Court I Suite 1210 I Miami, FL 33156  T: 305.662.7272 I F: 305.662.4266 I CFLGCPA.COM Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated October 31, 2023, 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 Village’s internal control over financial reporting and compliance. Caballero Fierman Llerena & Garcia, LLP Caballero Fierman Llerena & Garcia, LLP Miami, Florida October 31, 2023 MANAGEMENT’S DISCUSSION AND ANALYSIS (Required Supplementary Information) 4 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, 2022. 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 2022 At September 30, 2022, Miami Shores Village assets and deferred outflows exceeded its liabilities and deferred inflows by $41.1 million (net position). Of this amount, $23.3 million was invested in capital assets, an increase of $1.7 million compared with the prior year. Additionally, $7.3 million was restricted by law, agreements, and debt covenants or for capital projects. The Village had an unrestricted net position of $10.5 million at September 30, 2022, an increase of $3.1 million or a 42.4% increase as compared with the prior year. The increase in unrestricted net position was related to the $1,249,000 pay-off of the Aquatic Center Loan, reduction of budgeted encumbrances and the increased revenues in the proprietary funds with expenses remaining consistent with the prior year. During fiscal year 2022, total net position increased by $5.2 million, from $35.9 million in FY2021 to $41.2 million in FY2022. Of this increase, $4.7 million was an increase in governmental activities and an increase of $500 thousand in business-type activities. At September 30, 2022, Miami Shores Village’s governmental funds had fund balances totaling $15.9 million. Of the total fund balance, approximately $9.9 million or 62.6% was unassigned and $1.6 million or 10.3% was committed for future capital projects and encumbrances. The restricted fund balance of approximately $3.4 million, or 21.2%, is related to funds restricted by the contributing agency. The non-spendable fund balance of approximately $3 thousand is related to prepaid items. The assigned fund balance of $931 thousand or 5.9% is assigned for FY23 capital improvements. The net change in fund balances during the year was an increase of approximately $1.0 million indicative of the financial stability of the Village. Much of this change was due to revenues returning to pre- COVID levels and the introduction of the American Rescue Plan Act (ARPA) Fund. The General Fund’s fund balance increased by $1.4 million for the fiscal year ended September 30, 2022. The increase in unrestricted net position was related to revenues returning to pre-COVID levels, reduced spending in the Police Department and the introduction of the Building Fund. Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction to th e 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. 5 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 and zoning, including resiliency and sustainability programs, neighborhood services, 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 16 to 17 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 twelve (12) individual governmental funds. Information is presented separately in the governmental funds balance sheet and in the governmental funds statement of revenues, expenditures and changes in fund balance for the general fund and the three major funds, the police forfeiture fund, the grant fund and the American Rescue Plan Act fund. Data from the other nine governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these non-major governmental funds is provided in the form of combining statements elsewhere in this report. 6 The basic governmental fund financial statements may be found on pages 18 to 21 of this report. Proprietary funds. Miami Shores Village maintains three proprietary or enterprise funds. Enterprise Funds are used to report the same functions presented as business-type activities in the government-wide financial statements. Miami Shores uses enterprise funds to account for its 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 22 to 24 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 25 to 26 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 26 to 63 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 65 to 78 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 79 to 89 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, 2022 was $41.2 million. Approximately 56.7%, or $23.3 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, $7.3 million is restricted net position and is subject to external restrictions on how it may be spent. At September 30, 2022, Miami Shores Village had an unrest ricted net position of $10.5 million. At the end of the current fiscal year, Miami Shores Village is able to report positive balances in all three categories of net position for the government as a whole, as well as, the governmental funds and business-type activities. 7 Table 1 Miami Shores Village Summary of Net Position (in thousands) Total percentage change Governmental activities Business-type activities Total primary governmental 2022 2021 2022 2021 2022 2021 2022-2021 Current and other assets 24,658 18,567 7,543 6,851 32,201 25,418 26.69% Net pension asset 1,509 - 54 - 1,563 - - Capital assets 23,524 23,031 2,367 2,587 25,891 25,618 1.07% Total assets 49,691 41,598 9,964 9,438 59,655 51,036 16.89% Deferred outflows related to pension & OPEB 2,769 2,890 130 124 2,899 3,014 -3.82% Total deferred outflows of resources 2,769 2,890 130 124 2,899 3,014 -3.82% Long-term liabilities outstanding 3,962 10,604 3,681 3,986 7,643 14,590 -47.61% Other liabilities 6,369 1,171 1,307 1,174 7,676 2,345 227.33% Total liabilities 10,331 11,775 4,988 5,160 15,319 16,935 -9.54% Deferred inflows related to BTR, pension & OPEB 5,824 1,122 227 23 6,051 1,145 428.47% Total deferred inflows of resources 5,824 1,122 227 23 6,051 1,145 428.47% Net investment in capital assets, 20,970 19,027 2,366 2,587 23,337 21,614 15.20% Restricted 7,094 6,688 215 269 7,309 6,957 5.06% Unrestricted 8,241 5,876 2,297 1,523 10,539 7,399 21.30% Total net position 36,305 31,591 4,879 4,379 41,184 35,970 14.50% 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 $4.7 million or 14.9% during FY2022. The increase in ending net position is attributable to the $1,249,000 pay-off of the Aquatic Center Loan, reduction of budgeted encumbrances, increases in revenues as they return to pre-COVID levels and conservative spending. Also contributing to this increase was the introduction of the ARPA Fund and Building Fund. 8 Table 2 Miami Shores Village Changes in Net Position (in thousands) Total percentage change Governmental activities Business-type activities Total primary government 2022 2021 2022 2021 2022 2021 2022-2021 Revenues: Program revenues: Charges for services 6,302 5,532 4,075 3,848 10,377 9,380 10.63% Operating grants & Contributions 799 740 - - 799 740 7.97% Capital grants and Contributions - - - - - - - General Revenues: Property taxes 10,624 10,015 - - 10,624 10,015 6.08% Other taxes 2,476 2,233 - - 2,476 2,233 10.88% Intergovernmental revenues 1,633 4,201 - - 1,633 4,201 -61.13% Investment income - unrestricted 73 27 3 2 76 29 162.07% Miscellaneous 598 421 2 1 600 422 42.18% Special item - gain (loss) on sale of asset - (145) - - - (145) - Total revenues 22,505 23,024 4,080 3,851 26,585 26,875 -1.08% Expenses: General government 3,172 4,123 - - 3,172 4,123 -23.07% Public safety 6,782 7,741 - - 6,782 7,741 -12.39% Public works 4,474 3,860 - - 4,474 3,860 15.91% Solid Waste / Stormwater / Water & Wastewater - - 3,244 3,185 3,244 3,185 1.85% Culture & Recreation 3,616 3,106 - - 3,616 3,106 16.42% Interest on Long-term Debt 83 115 - - 83 115 -27.83% Total expenses 18,127 18,945 3,244 3,185 21,371 22,130 -3.43% Increase(decrease) in net position before Transfers 4,378 4,079 836 666 5,214 4,745 9.88% Transfers 336 336 (336) (336) - - - Increase(decrease) in net position 4,714 4,415 500 330 5,214 4,745 9.88% Beginning net position 31,591 27,176 4,379 4,049 35,970 31,225 15.20% Prior period adjustment - - - - - - - Ending net position 36,305 31,591 4,879 4,379 41,184 35,970 14.50% 9 Figure A-1 Expenses and Program Revenues – Governmental Activities For the Fiscal Year Ended September 30, 2022 Figure A-2 Revenues by Source – Governmental Activities For the Fiscal Year Ended September 30, 2022 Business-type activities. The Miami Shores Village major business-type activities include the following enterprise funds:  Solid Waste Fund  Stormwater 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 Revenues Expenses General government Public safety Public Works Culture/recreation Interest on long-term debt Property Taxes 48% Charges for Services 29% Investment Income 0% Public Service Taxes 11% Intergovernmental 8% Other 4% 10  Water & Wastewater Fund Net position of business-type activities increased by approximately $500 thousand. This increase is due to the increase in revenues while spending remained consistent with the prior year. 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, 2022 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 $15.9 million. Of this amount, $9.9 million reflects unassigned fund balance, which is available for spending at the government’s discretion. The remainder of the fund balance is non- spendable, 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 FY23 from the budget adopted in FY23, 2)committed to liquidate contracts or encumbered fiscal obligations (outstanding purchase orders) valued at $1.6 million, 3) restricted for funds limited by the contributing agency of $3.4 million and 4) non-spendable for funds used to account for amounts which cannot currently be spent, such as prepaid expenses of $3 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 $11.1 million as compared with $9.7 million in the prior year. The Village's General Fund unassigned balance increased by $1.4 million during the 2022 fiscal year. The increase in unrestricted net position was related to revenues returning to pre-COVID levels, conservative spending and the introduction of the Building Fund. The Village has three other major funds, Police Forfeiture Fund, the Grant Fund and the American Rescue Plan Act (ARPA) 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 11 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 $719 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. The American Rescue Plan Act Fund accounts for the Federal Funds received from the U.S. Department of Treasury in response to the COVID-19 pandemic. The Village received a total of $5,228,370, classified as revenue replacement funds. These funds have to be obligated by December 2024 and spent by December 2026. 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 $692 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 $1.8 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 $164 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 re- appropriation 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 five 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 $1.5 million below final budgeted amounts. Savings were realized in general government, $616 thousand, public safety, $364 thousand, public works, $153 thousand, and culture and recreation, $353 thousand. These savings in general government costs and various departmental costs were due to unfilled positions and conservative spending. 12 The fiscal year 2022 final amended budget was $17.9 million, an increase of 3.9% over the original General Fund budget of $17.2 million. Correspondingly, the Consumer Price Index (or inflation index) from the U.S. Bureau of Labor Statistics – All Urban Consumers increased 8.2% for the year ended September 2022. The final Adopted Budget is balanced with revenues of $16 million, $700 thousand in operating transfers from the Building Fund, Solid Waste Fund and the Stormwater Fund, and a $1.1 million appropriation from the General Fund Balance. 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, 2022 amounts to $25.9 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, 2022 and 2021 (net of accumulated depreciation) Governmental Activities Business-Type Activities Total Classification 2022 2021 2022 2021 2022 2021 Land $ 2,386,158 $ 2,386,158 $ - $ - $ 2,386,158 $ 2,386,158 Construction in progress 2,060,993 803,951 112,234 108,149 2,173,227 912,100 Building 8,764,330 8,948,248 - - 8,764,330 8,948,248 Infrastructure 6,893,533 7,216,195 1,460,349 1,495,525 8,353,882 8,711,720 Machinery and equipment 2,946,828 3,112,145 794,371 983,130 3,741,199 4,095,275 Intangible 472,342 563,971 - - 472,342 563,971 Totals $23,524,184 $23,030,668 $2,366,954 $2,586,804 $25,891,138 $25,617,472 Additional information on Miami Shores Village’s capital assets may be found in Note 6 on Pages 41 to 42 of this report. Long-term Liabilities. At September 30, 2022, Miami Shores Village had $6.4 million in long-term liabilities, which are summarized in the schedule below. The decrease of $8.6 million is attributable to a decrease in annual bond payments of $1.4 million due to the closing of the Miami Shores Village, Florida Refunding General Obligation Bond, Series 2013 for the aquatic center, an increase in OPEB liability of $58 thousand, and compensated absences of $179 thousand. 13 Miami Shores Village Outstanding Long-term Liabilities as of September 30, 2022 and 2021 Governmental Activities Business-type activities Total Primary Government 2022 2021 2022 2021 2022 2021 General obligation bonds $2,554,600 $4,003,900 $ - $ - $2,554,600 $4,003,900 Other debt - - 3,640,000 3,700,000 3,640,000 3,700,000 Total bonds and notes payable 2,554,600 4,003,900 3,640,000 3,700,000 6,194,600 7,703,900 Other liabilities: OPEB liability 603,654 551,929 25,689 19,632 629,343 571,561 Estimated insurance claims payable - - - - - - Compensated absences 1,014,199 863,251 101,218 73,467 1,115,417 936,718 Totals $4,172,453 $10,956,928 $3,766,907 $4,004,619 $7,939,360 $9,212,179 Additional information on the Village’s long-term debt may be found in Note 7 on Pages 42 to 43 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. 14 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 2022 reflected an increase of $459 thousand, precipitated by an increase in property values of $60 million or 4.8% in property values as compared with 2021. 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 $11.1 million, an increase of $1.4 million compared to the unassigned fund balance in 2021 of $9.7 million. This fund balance of $11.1 million is contingent upon the $1.2 million accounts receivable attributable to Hurricane IRMA. The balance of $9.9 million is approximately equal to 6.3 months of General Fund operating expenditures. Even though fair market property values are expected to increase; assessed property values are limited by the “Save Our Homes” benefits. This limits the increase in property tax revenue even when property values are increasing. Expenditures such as payroll, personnel benefits and operating will continue to increase given the economic impact from the COVID-19 pandemic and other world events. Fiscal year 2023 budgeted expenditures and transfers are expected to be $20.1 million, or 16.8%, more than the fiscal year 2022 budget of $17.2 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 any unforeseen circumstances, world crisis, to 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, 2013-2022 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. $- $2,000,000.00 $4,000,000.00 $6,000,000.00 $8,000,000.00 $10,000,000.00 $12,000,000.00 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 15 Miami Shores Village Total Village Millage For the Fiscal Years ended September 30, 2013-2022 Fiscal year 2023 budgeted expenditures and transfers are expected to increase $3.0 million compared with fiscal year 2022. This increase in expenditures is the result of the COVID-19 pandemic restrictions subsiding, as well as the direct economic impact, resulting from the pandemic, with price increases as the supply chain issues and shortages occur. Additional contributory factors include the increase in Village staff budgeted positions and the increase in capital improvements delayed due to the pandemic. Requests for Information This financial report is designed to provide a general overview of Miami Shores Village finances to our citizens, taxpayers, customers, investors, creditors, and others with an interest in the Village finances. Questions concerning this report or requests for additional financial information should be directed to the Finance Director, Holly Hugdahl, CPA, CGMA. MIAMI SHORES VILLAGE Finance Department 10050 Northeast Second Avenue Miami Shores, Florida 33138-2382 7.4 7.6 7.8 8 8.2 8.4 8.6 8.8 9 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Operating Millage Debt Service Millage BASIC FINANCIAL STATEMENTS Governmental Business-Type Activities Activities Total ASSETS Current assets: Cash and cash equivalents 22,155,489$ 3,859,203$ 26,014,692$ Investments 324,383 - 324,383 Accounts receivables - net 1,924,871 133,771 2,058,642 Special assessment receivable - 3,450,855 3,450,855 Inventories 10,559 94,176 104,735 Prepaid items 242,126 - 242,126 Restricted assets: Cash and cash equivalents - 5,237 5,237 Total current assets 24,657,428 7,543,242 32,200,670 Non-current assets: Net pension asset 1,508,987 54,173 1,563,160 Capital assets: Capital assets not being depreciated 4,447,151 112,234 4,559,385 Capital assets being depreciated, net 19,077,033 2,254,720 21,331,753 Total non-current assets 25,033,171 2,421,127 27,454,298 Total assets 49,690,599 9,964,369 59,654,968 DEFERRED OUTFLOWS OF RESOURCES Pension 2,638,831 118,007 2,756,838 Other post employment benefits (OPEB)129,886 11,862 141,748 Total deferred outflows of resources 2,768,717 129,869 2,898,586 LIABILITIES Accounts payable and accrued liabilities 1,049,148 110,074 1,159,222 Unearned revenues 5,109,132 1,111,292 6,220,424 Noncurrent liabilities: Due within one year 210,360 85,304 295,664 Due in more than one year 3,962,093 3,681,602 7,643,695 Total liabilities 10,330,733 4,988,272 15,319,005 DEFERRED INFLOWS OF RESOURCES Busines license tax 48,960 - 48,960 Pension 5,579,468 216,430 5,795,898 Other post employment benefits (OPEB) 195,608 10,623 206,231 Total deferred inflows of resources 5,824,036 227,053 6,051,089 NET POSITION Net investment in capital assets 20,969,584 2,366,954 23,336,538 Restricted for: Public safety 752,666 - 752,666 Transportation 1,654,701 - 1,654,701 Building 449,242 - 449,242 Library 252,340 - 252,340 Debt service 144,495 - 144,495 Charter school 1,620,087 - 1,620,087 Parks and recreation 65,252 - 65,252 Capital projects 1,640,647 - 1,640,647 Subsequent years budget 514,283 214,634 728,917 Unrestricted 8,241,250 2,297,325 10,538,575 Total net position 36,304,547$ 4,878,913$ 41,183,460$ MIAMI SHORES VILLAGE, FLORIDA STATEMENT OF NET POSITION SEPTEMBER 30, 2022 See notes to basic financial statements. 16 MIAMI SHORES VILLAGE, FLORIDA STATEMENT OF ACTIVITIES FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2022 Net Revenue (Expense) and Changes in Net Position Operating Business- Charges for Grants and Governmental Type Functions/Programs Expenses Services Contributions Activities Activities Total Primary government Governmental activities: General government 3,172,085$ 2,495,126$ -$ (676,959)$ -$ (676,959)$ Public safety 6,782,274 2,418,250 - (4,364,024) - (4,364,024) Public works 4,473,996 33,880 799,272 (3,640,844) - (3,640,844) Culture and recreation 3,616,598 1,355,295 - (2,261,303) - (2,261,303) Interest on long-term debt 82,588 - - (82,588) - (82,588) Total governmental activities 18,127,541 6,302,551 799,272 (11,025,718) - (11,025,718) Business-type activities: Solid waste 2,820,292 3,420,822 - - 600,530 600,530 Stormwater 226,609 592,626 - - 366,017 366,017 Water & wastewater 196,925 61,592 - - (135,333) (135,333) Total business-type activities 3,243,826 4,075,040 - - 831,214 831,214 Total primary government 21,371,367 10,377,591 799,272 (11,025,718) 831,214 (10,194,504) General revenues: Property taxes, levied for general purposes 10,623,678$ -$ 10,623,678$ Public service taxes 2,475,934 - 2,475,934 Intergovernmental (unrestricted)1,632,997 - 1,632,997 Investment income (unrestricted)73,387 3,545 76,932 Miscellaneous 597,605 1,634 599,239 Transfers 335,957 (335,957) - Total general revenues and transfers 15,739,558 (330,778) 15,408,780 Change in net position 4,713,840 500,436 5,214,276 Net position - beginning 31,590,707 4,378,477 35,969,184 Net position - ending 36,304,547$ 4,878,913$ 41,183,460$ Program Revenue See notes to basic financial statements. 17 MIAMI SHORES VILLAGE BALANCE SHEET GOVERNMENTAL FUNDS SEPTEMBER 30, 2022 Major Funds Other Nonmajor Total General Police American Rescue Governmental Governmental Fund Forfeiture Grant Plan Act Funds Funds ASSETS Cash and cash equivalents 9,006,971$ 699,797$ -$ 5,233,748$ 4,843,638$ 19,784,154$ Investments 324,383 - - - - 324,383 Accounts receivable, net 842,216 19,466 908,695 - 130,251 1,900,628 Due from other funds 2,256,485 - - - - 2,256,485 Prepaid items 2,552 - - - - 2,552 Total assets 12,432,607 719,263 908,695 5,233,748 4,973,889 24,268,202 LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES Liabilities: Accounts payable and accrued liabilities 335,370 - 17,307 49,249 550,135 952,061 Due to other funds - - 2,080,952 175,533 - 2,256,485 Unearned revenue 31,169 - 8,611 5,008,966 60,386 5,109,132 Total liabilities 366,539 - 2,106,870 5,233,748 610,521 8,317,678 Deferred inflows of resources: Business license tax 48,960 - - - - 48,960 Total deferred inflows of resources 48,960 - - - - 48,960 Fund balances: Nonspendable 2,552 - - - - 2,552 Restricted - 719,263 - - 2,654,270 3,373,533 Committed - - - - 1,640,647 1,640,647 Assigned 863,000 - - - 68,451 931,451 Unassigned 11,151,556 - (1,198,175) - - 9,953,381 Total fund balances 12,017,108 719,263 (1,198,175) - 4,363,368 15,901,564 Total liabilities, deferred inflows of resources, and fund balances 12,432,607$ 719,263$ 908,695$ 5,233,748$ 4,973,889$ 24,268,202$ See notes to basic financial statements. 18 Fund balances - total governmental funds (Page 18)15,901,564$ Amounts reported for governmental activities in the statement of net position are different as a result of: Certain assets used in governmental activities are not financial resources, and, therefore, are not reported in the governmental funds: Net pension assets 1,492,340 1,492,340 Capital assets used in governmental activities are not financial resources and therefore are not reported in the governmental funds. Governmental capital assets 48,184,904 Less accumulated depreciation (26,654,908) 21,529,996 Deferred inflows/outflows of resources in the statement of net position will be recognized in future periods. Deferred outflows related to OPEB 126,238 Deferred inflows related to OPEB (192,333) Deferred outflows related to pension 2,602,592 Deferred inflows related to pension (5,512,959) (2,976,462) 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 (2,554,600) OPEB liability (595,719) Compensated absences (979,959) (4,130,278) Net position of internal service funds are not reported with governmental funds 4,487,387 Net position of governmental activities (Page 16)36,304,547$ SEPTEMBER 30, 2022 MIAMI SHORES VILLAGE, FLORIDA RECONCILIATION OF THE BALANCE SHEET TO THE STATEMENT OF NET POSITION GOVERNMENTAL FUNDS See notes to basic financial statements. 19 MIAMI SHORES VILLAGE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2022 Major Funds Other Nonmajor Total General Police American Rescue Governmental Governmental Fund Forfeiture Grant Plan Act Funds Funds REVENUES Property taxes 10,158,979$ -$ -$ -$ 464,699$ 10,623,678$ Public services taxes 2,475,934 - - - - 2,475,934 Fees and fines 299,205 60,554 - - 2,607 362,366 Licenses and permits 253,252 - - - 1,279,643 1,532,895 Intergovernmental 1,481,181 - 698,652 182,383 915,157 3,277,373 Grants, contributions and donations - - - - 29,419 29,419 Charges for services 2,115,710 - - - - 2,115,710 Investment earnings 53,074 1,439 - 5,376 8,318 68,207 Miscellaneous 319,443 - - - - 319,443 Total revenues 17,156,778 61,993 698,652 187,759 2,699,843 20,805,025 EXPENDITURES Current: General government 2,844,381 - (209) - 5,000 2,849,172 Public safety 7,638,168 48,496 8,059 - 737,719 8,432,442 Public works 1,836,178 - 47,880 - 393,739 2,277,797 Culture and recreation 3,153,802 - 10,205 - 55,954 3,219,961 Debt Service: Principal - - - - 1,449,300 1,449,300 Interest - - - - 82,588 82,588 Capital outlay - 33,358 632,717 187,759 945,835 1,799,669 Total expenditures 15,472,529 81,854 698,652 187,759 3,670,135 20,110,929 Excess (deficiency) of revenues over expenditures 1,684,249 (19,861) - - (970,292) 694,096 OTHER FINANCING SOURCES (USES) Transfers in 700,000 - - - 863,000 1,563,000 Transfers out (927,043) - - - (300,000) (1,227,043) Total other financing sources and uses (227,043) - - - 563,000 335,957 Net change in fund balances 1,457,206 (19,861) - - (407,292) 1,030,053 Fund balances (deficit) - beginning of year, previously reported 10,615,044 739,124 (1,198,175) - 4,715,518 14,871,511 Prior period adjustment - See Note 15 (55,142) - - - 55,142 - Fund balances, beginning of year, as restated 10,559,902 739,124 (1,198,175) - 4,770,660 14,871,511 Fund balances - ending 12,017,108$ 719,263$ (1,198,175)$ -$ 4,363,368$ 15,901,564$ See notes to basic financial statements. 20 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 20)1,030,053$ 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 1,811,589$ Less current year depreciation (1,384,391) Net adjustment 427,198 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 1,449,300 1,449,300 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 (asset) and other deferral amounts 2,136,303 Change in compensated absences (148,459) Change in OPEB liability and other deferral amounts (7,562) Allocation of internal service funds' change in net position (172,993) 1,807,289 Change in net position of governmental activities (Page 17)4,713,840$ FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2022 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. 21 MIAMI SHORES VILLAGE STATEMENT OF NET POSITION PROPRIETARY FUNDS SEPTEMBER 30, 2022 Governmental Enterprise Funds Activities- Solid Waste Stormwater Water & Wastewater Total Internal Service Funds ASSETS Current assets: Cash and cash equivalents 1,715,892$ 2,005,837$ 137,474$ 3,859,203$ 2,371,335$ Accounts receivable, net 122,934 9,726 1,111 133,771 24,243 Special assessment receivables 47,419 6,051 3,397,385 3,450,855 - Inventories 94,176 - - 94,176 10,559 Prepaid Expenses - - - - 239,574 Restricted assets: Cash and cash equivalents - - 5,237 5,237 - Total current assets 1,980,421 2,021,614 3,541,207 7,543,242 2,645,711 Non-current assets: Net pension asset 50,374 3,799 - 54,173 16,647 Capital assets: Capital assets not being depreciated - 111,166 1,068 112,234 7,127 Capital assets being depreciated, net 794,371 1,460,349 - 2,254,720 1,987,061 Total non-current assets 844,745 1,575,314 1,068 2,421,127 2,010,835 Total assets 2,825,166$ 3,596,928$ 3,542,275$ 9,964,369$ 4,656,546$ DEFERRED OUTLOWS OF RESOURCES Pension 109,729 8,278 - 118,007 36,239 Other post employment benefits 10,973 889 - 11,862 3,648 Total deferred outflows of resources 120,702 9,167 - 129,869 39,887 LIABILITIES Current liabilities: Accounts payable and accrued liabilities 96,633 12,135 1,306 110,074 97,087 Unearned revenue 891,959 154,938 64,395 1,111,292 - Compensated absences 24,290 1,014 - 25,304 8,560 Bonds, notes and loans payable - - 60,000 60,000 - Total current liabilities 1,012,882 168,087 125,701 1,306,670 105,647 Non-current liabilities: Compensated absences 72,871 3,042 - 75,913 25,680 OPEB liability 23,128 2,561 - 25,689 7,935 Bonds, notes and loans payable - - 3,580,000 3,580,000 - Total non-current liabilities 95,999 5,603 3,580,000 3,681,602 33,615 Total liabilities 1,108,881 173,690 3,705,701 4,988,272 139,262 DEFERRED INFLOWS OF RESOURCES Pension 201,249 15,181 - 216,430 66,509 Other post employment benefits 9,670 953 - 10,623 3,275 Total deferred inflows of resources 210,919 16,134 - 227,053 69,784 NET POSITION Net investment in capital assets 844,745 1,575,314 1,068 2,421,127 2,010,835 Restricted 140,000 74,634 - 214,634 370,000 Unrestricted 641,323 1,766,323 (164,494) 2,243,152 2,106,552 Total net position 1,626,068$ 3,416,271$ (163,426)$ 4,878,913$ 4,487,387$ Business-type Activities - See notes to basic financial statements. 22 MIAMI SHORES VILLAGE STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITON PROPRIETARY FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2022 Governmental Enterprise Funds Activities- Solid Waste Stormwater Water & Wastewater Total Internal Service Funds REVENUES Charges for services 3,420,822$ 592,626$ 61,592$ 4,075,040$ 2,367,646$ Total operating revenues 3,420,822 592,626 61,592 4,075,040 2,367,646 Operating expenses Personal services 1,035,821 88,428 - 1,124,249 247,477 Utilities 864,442 6,359 - 870,801 18,616 Repairs and maintenance 499,159 24,366 57,146 580,671 263,026 Administrative expenses 187,957 20,950 63,500 272,407 632,896 Insurance claims and expenses 44,154 8,424 - 52,578 1,048,974 Depreciation 188,759 78,082 - 266,841 334,830 Total Operating expenses 2,820,292 226,609 120,646 3,167,547 2,545,819 Operating income (loss)600,530 366,017 (59,054) 907,493 (178,173) NON-OPERATING REVENUES (EXPENSES) Interest and investment revenue 716 2,780 49 3,545 5,180 Miscellaneous revenue - - 1,634 1,634 - Interest expense - - (76,279) (76,279) - Total non-operating revenue (expenses)716 2,780 (74,596) (71,100) 5,180 Income (loss) before contributions and transfers 601,246 368,797 (133,650) 836,393 (172,993) Transfers in - - 64,043 64,043 - Transfers out (350,000) (50,000) - (400,000) - Change in net position 251,246 318,797 (69,607) 500,436 (172,993) Total net position (deficit)- beginning 1,374,822 3,097,474 (93,819) 4,378,477 4,660,380 Total net position (deficit) - ending 1,626,068$ 3,416,271$ (163,426)$ 4,878,913$ 4,487,387$ Business-type Activities - See notes to basic financial statements. 23 Governmental Activities- Solid Waste Stormwater Water & Wastewater Total Internal Service Funds Cash flows from operating activities: Cash received from customers, governments and other funds 3,471,769$ 596,159$ 208,998$ 4,276,926$ 2,350,023$ Cash paid to suppliers (1,588,897) (49,926) (119,340) (1,758,163) (1,879,999) Cash paid for employees (1,014,840) (88,613) - (1,103,453) (247,125) Net cash provided by operating activities 868,032 457,620 89,658 1,415,310 222,899 Cash flows from non-capital financing activities: Transfers in - - 64,043 64,043 - Transfers out (350,000) (50,000) - (400,000) - Net cash provided by (used in) non-capital financing activities (350,000) (50,000) 64,043 (335,957) - Cash flows from capital related financing activities: Acquisition and construction of capital assets (50,374) (50,790) - (101,164) (417,795) Principal paid on long-term debt - - (60,000) (60,000) - Interest paid on capital debt - - (76,279) (76,279) - Net cash (used in) capital and related financing activities (50,374) (50,790) (136,279) (237,443) (417,795) Cash flows from investing activities: Interest and other income 716 2,780 1,683 5,179 5,180 Net cash provided by investing activities 716 2,780 1,683 5,179 5,180 Net increase (decrease) in cash and cash equivalents 468,374 359,610 19,105 847,089 (189,716) Cash and cash equivalents, October 1 1,247,518 1,646,227 123,606 3,017,351 2,561,051 Cash and cash equivalents, September 30 1,715,892$ 2,005,837$ 142,711$ 3,864,440$ 2,371,335$ Reported in statement of net position as follows: Cash and cash equivalents 1,715,892$ 2,005,837$ 137,474$ 3,859,203$ 2,371,335$ Restricted - - 5,237 5,237 - 1,715,892$ 2,005,837$ 142,711$ 3,864,440$ 2,371,335$ Reconciliation of operating income to net cash provided by operating activities: Operating income (loss)600,530$ 366,017$ (59,054)$ 907,493$ (178,173)$ Adjustments to reconcile operating income to net cash provided by operating activities: Depreciation 188,759 78,082 - 266,841 334,830 Change in assets and liabilities: (Increase) decrease in: Accounts receivable 14,951 (853) 146,880 160,978 (17,623) Inventories (6,291) - - (6,291) 24,960 Prepaids - - - - (19,026) Deferred outflows of resources for pension (5,075) (384) - (5,459) (1,677) Increase (decrease) in: Accounts payable and accrued liabilities 13,106 10,173 1,306 24,585 78,201 Compensated absences 27,446 304 - 27,750 1,867 OPEB liability 5,632 425 - 6,057 1,861 Unearned revenues 35,996 4,386 526 40,908 - Net pension liability (asset)(196,684) (14,836) - (211,520) (65,000) Deferred inflows of resources for pension 189,662 14,306 - 203,968 62,679 Total adjustments 267,502 91,603 148,712 507,817 401,072 Net cash provided by operating activities 868,032$ 457,620$ 89,658$ 1,415,310$ 222,899$ Enterprise Funds MIAMI SHORES VILLAGE STATEMENT OF CASH FLOWS PROPRIETARY FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2022 Business-type Activities - See notes to basic financial statements. 24 MIAMI SHORES VILLAGE STATEMENT OF FIDUCIARY NET POSITION FIDUCIARY FUNDS SEPTEMBER 30, 2022 Pension Private Trust Purpose Funds Trust ASSETS Cash and cash equivalents $ 830,434 $ 1,496,804 Receivables: Accounts receivables 109,624 - Interest and dividends 184,924 - Total receivables 294,548 - Investments: Mutual funds - equity 16,114,957 - Common stock 9,558,827 - Corporate bonds 7,663,605 - U.S. Government securities 3,648,282 - Mortgage backed securities 4,538,708 - Foreign stock 1,102,337 - Foreign bonds 96,329 - Municipal bonds 117,315 - Total Investments 42,840,360 - Total assets 43,965,342 1,496,804 NET POSITION Net position restricted for pensions $ 43,965,342 $ 1,496,804 See notes to basic financial statements. 25 MIAMI SHORES VILLAGE STATEMENT OF CHANGES IN FIDUCIARY NET POSITION FIDUCIARY FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2022 Pension Private Trust Purpose Funds Trust ADDITIONS Contributions: Employer 1,604,695$ -$ Plan Members 466,692 - State of Florida 109,624 - Total contributions 2,181,011 - Investment earnings: Net increase in fair value of investments (12,680,080) - Interest 3,000,793 2,877 Investment activity expense (208,992) - Total net investment earnings (9,888,279) 2,877 Total additions (7,707,190) 2,877 DEDUCTIONS Benefits 3,128,319 - Administrative 178,940 - Total deductions 3,307,259 - Change in net position (11,014,449) 2,877 Net position - beginning 54,979,791 1,493,927 Net position - ending 43,965,342$ 1,496,804$ See notes to basic financial statements. 26 NOTES TO BASIC FINANCIAL STATEMENTS MIAMI SHORES VILLAGE, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2022 27 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 BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2022 28 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. American Rescue Plan Act (ARPA) Fund – This fund accounts for the use of funds received by the State of Florida for expenses eligible under ARPA Coronavirus State and Local Fiscal Recovery Funds. 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 BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2022 29 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 BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2022 30 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) D. Deposits and Investments The Village's cash and cash equivalents, for purpose of the statement of cash flows, include cash on hand, time and demand deposits, and short-term investments with original maturities of three months or less from the date of acquisition. The Village maintains a cash pool that is available for use by all funds. Interest earned on pooled cash is allocated to each of the funds, based on the fund’s average pooled cash balance on a monthly basis. All of the Village’s investments are reported at fair value, which is based on quoted market prices. The Village’s investments consist of amounts placed with the State Board of Administration in the Local Government Surplus Funds Trust Fund (Florida PRIME) investment pool. The Florida PRIME is considered a SEC 2a-7-like fund, thus reported at its fair value of its position in the pool, which is the same as its value of the pool shares. The Plan’s investments are carried at fair value using quoted market prices to value investments. Differences between cost and market value are recorded as net unrealized gains or losses. Net realized gains or losses for securities which are sold are combined with the unrealized gains and losses and shown as “net appreciation (depreciation) in fair value of investments” in plan net position. Dividends and interest are recognized as earned. Purchases and sales of investments are recorded on a trade-date basis. The Village's investments in Florida PRIME are governed by the provisions of Florida Statutes Section 218.415. Investments in the Village's retirement plans are governed by the Plan's investment policies. E. Receivables and Payables Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either “due to/from other funds” (i.e. the current portion of interfund loans) or “advances to/from other funds” (i.e. the non-current portion of interfund loans). All other outstanding balances between funds are reported as “due to/from other funds”. Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as “internal balances.” F. Inventories and Prepaid Items Inventories are valued at cost using the first-in, first-out (FIFO) method. The costs of governmental fund-type inventories are recorded as expenditures when consumed rather than when purchased (consumption method). In the governmental funds, reported inventories are offset by fund balance reserve which indicates that they do not constitute available spendable resources. Certain payments to vendors reflect costs applicable to future accounting periods and are recorded – in both, the government-wide and fund financial statements – as prepaid items by recording an asset for the prepaid amount and recognizing the expenditure in the year such item is consumed (consumption method). Amounts reported in the governmental funds are offset by an equal reservation of fund balance in the fund financial statements. This is an indication that these components of current assets do not constitute available spending resources. G. Property Taxes Property values are assessed as of January 1 of each year, at which time taxes become an enforceable lien on the property. Tax bills are mailed for the Village by Miami Dade County on or about October 1 of each year and are payable with discounts of up to 4% offered for early payment. Taxes become delinquent on April 1 of the year following the year of assessment and State law provides for enforcement of collection of property taxes by seizure of the personal property or by the sale of interest-bearing tax certificates to satisfy unpaid property taxes. MIAMI SHORES VILLAGE, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2022 31 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, 2022 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 BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2022 32 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 assets 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 $2,756,838 and OPEB amounts of $141,748 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 assets 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 $48,960, pension amounts of $5,795,898, and OPEB amount of $206,231. 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 the 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 of 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 22-23 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, 2022, for purposes of measuring the net pension liability (asset), 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 (asset) is a function of the annual required contributions, interest, adjustments to the annual required contribution, annual pension costs and actual employer’s contributions made to the Plans. Please refer to Note 10 for further information. MIAMI SHORES VILLAGE, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2022 33 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, 2022, is classified into three components of net position: Net investment in capital assets This category consists of capital assets (including restricted capital assets), net of accumulated depreciation and reduced by any outstanding balances of bonds, mortgages, notes or other borrowings that are attributable to the acquisition, construction, and improvements of those assets, excluding unexpended proceeds. Restricted net position This category consists of net position restricted in their use by (1) external groups such as grantors, creditors or laws and regulations of other governments; or (2) law, through constitutional provisions or enabling legislation. Unrestricted net position This category includes all of the remaining net position that does not meet the definition of the other two categories. MIAMI SHORES VILLAGE, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2022 34 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) P. Net Position / Fund Balance (continued) As of September 30, 2022, 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. 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. MIAMI SHORES VILLAGE, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2022 35 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 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. 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. A negative fund balance was recognized in the Grant Fund and the Water & Wastewater Fund. The Village determined the negative fund balance in the Grant Fund is due to the reimbursement amount that is pending FEMA approval for Hurricane Irma and future assessments will offset the deficit in the Water & Wastewater fund. 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, 2022, 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. MIAMI SHORES VILLAGE, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2022 36 NOTE 3 – DEPOSITS AND INVESTMENTS (CONTINUED) Investments The Village is authorized to invest in obligations of the U.S. Treasury, its agencies, instrumentalities and the Local Government Surplus Funds Trust Fund administered by the State Board of Administration (SBA). The investment policy defined in the statutes attempts to promote, through state assistance, the maximization of net interest earnings on invested surplus funds of local units of governments while limiting the risk to which the funds are exposed. The SBA administers Florida PRIME (“PRIME”), which is governed by Chapter 19-7 of the Florida Administrative Code and Chapters 215 and 219 of the Florida Statutes. These rules provide guidance and establish the policies and general operating procedures of the administration of PRIME. PRIME is not a registrant with the Securities and Exchange Commission; however, the SBA has adopted operating procedures consistent with the requirements for a 2a-7 fund, which permits money market funds to use amortized cost to maintain a constant net asset value (“NAV”) of $1 per share. The fair value of the position in the Florida PRIME is equal to the value of the pool shares. Additionally, the Office of the Auditor General of the State of Florida performs the operational audit of the activities and investment of the SBA. The SBA accounts are not subject to custodial credit risk as these investments are not evidenced by securities that exist in physical or bank entry form. In accordance with GASB Statement No. 79, Certain External Investment Pools and Pool Participants, the Village’s investment in the Florida PRIME meets the definition of a qualifying investment pool that measures for financial reporting purposes all of its investments at amortized cost and should disclose the presence of any limitations or restrictions on withdrawals. As of September 30, 2022, 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, 2022, the Village had the following investments: Investment Type Fair Value SBA-PRIME 324,383 Total 324,383 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, 2022 is 21 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, 2022, is 72 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, 2022, the value of each position held in the Village’s portfolio comprised of less than 5% of the Village’s investment assets. MIAMI SHORES VILLAGE, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2022 37 NOTE 3 – DEPOSITS AND INVESTMENTS (CONTINUED) Investments Pension Plans The Pension Board of Trustees has developed certain investment guidelines and has retained investment managers. The investment managers are expected to maximize the return on the investment portfolio and may make transactions consistent with that expectation within the Board's guidelines. The investment managers are compensated based on a percentage of their portfolio's market value. The Plans’ investment policy is determined by the Board who is responsible for directing the investment of the assets of the Plans to ensure that there will be adequate monies for future benefits. The policy has been identified by the Board to conduct the operations of the Plans in a manner so that the assets will provide the pension and other benefits provided under applicable laws, including Village ordinances, preserving principal while maximizing the rate of return. Investment in all equity securities shall be limited to those listed on a major U.S stock exchange and limited to no more than 70% (at market) of the Plan’s total asset value. The equity position in any one company shall not exceed 5% of the Plan’s total asset value at the time of purchase. Investments in stocks of foreign companies shall be limited to 25% of the Plan’s market value. Investments in fixed income securities shall meet or exceed a 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, 2022, the annual money-weighted rate of return on pension plan investments, net pension plan investment expense, was (18.99%) for the General Employee Retirement Plan and (18.07%) 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, 2022, 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 US Government Obligations 578,226 - 376,198 608,903 1,563,327 Municipal Bond Obligations - - 39,105 - 39,105 Corporate Bonds 286,658 772,489 744,057 880,124 2,683,328 Foreign Bonds Notes & Debentures - 35,490 - - 35,490 Mortgage Backed Securities - 15,032 134,060 1,307,273 1,456,365 Total 864,884 823,011 1,293,420 2,796,300 5,777,615 MIAMI SHORES VILLAGE, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2022 38 NOTE 3 – DEPOSITS AND INVESTMENTS (CONTINUED) Investments Pension Plans (Continued) Police Officers' Retirement Plan Investment Type Less Than 1 1-5 6-10 More than 10 years Fair Value US Government Obligations 761,083 - 413,425 910,447 2,084,955 Municipal Bond Obligations - 78,210 - - 78,210 Corporate Bonds 781,214 1,264,966 1,277,884 1,656,213 4,980,277 Foreign Bonds Notes & Debentures - 60,839 - - 60,839 Mortgage Backed Securities - - 268,119 2,814,224 3,082,343 Total 1,542,297 1,404,015 1,959,428 5,380,884 10,286,624 Interest Rate Risk Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment the greater the sensitivity of its fair value to changes in market interest rates. As a means of limiting its exposure to interest rate risk, the Plan diversifies its investments by security type and institution, and limits holdings in any one type of investment with any one issuer with various durations of maturities. Credit Risk Credit risk is the risk that a security or a portfolio will lose some or all of its value due to a real or perceived change in the ability of the issuer to repay its debt. This risk is generally measured by the assignment of a rating by a nationally recognized statistical rating organization. The Plan’s investment policy utilizes portfolio diversification in order to control this risk. The Plan’s investment policies limit investments in fixed income securities to a rating of investment grade or higher. General Employees' Retirement Plan The following tables disclose credit ratings by investment type, at September 30, 2022: Fair Value Percentage of Portfolio US government guaranteed*1,563,327 27.06% Quality rating of credit risk debt securities AA 23,385 0.40% AA-157,986 2.73% A+262,807 4.55% A 156,431 2.71% A-608,035 10.52% BBB+513,821 8.89% BBB 511,050 8.85% BBB-56,264 0.97% NR**1,924,509 33.31% Total fixed income securities 5,777,615$ 100% * Obligations of the U.S government or obligations explicitly 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. 2022 MIAMI SHORES VILLAGE, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2022 39 NOTE 3 – DEPOSITS AND INVESTMENTS (CONTINUED) Investments Pension Plans (Continued) Police Officers' Retirement Plan The following tables disclose credit ratings by investment type, at September 30, 2022: Fair Value Percentage of Portfolio US government guaranteed*2,084,955 20.27% Quality rating of credit risk debt securities AA+1,952,397 18.98% AA 46,768 0.45% AA-287,643 2.80% A+519,683 5.05% A 349,060 3.39% A-1,162,934 11.31% BBB+879,346 8.55% BBB 922,735 8.97% BBB-97,183 0.94% NR**1,983,920 19.29% Total fixed income securities 10,286,624$ 100% * Obligations of the U.S government or obligations explicitly 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. 2022 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, 2022, 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. MIAMI SHORES VILLAGE, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2022 40 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. The Plans have the following recurring fair value measurements as of September 30, 2022: General Employees' Retirement Plan Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs 9/30/2022 (Level 1)(Level 2) Investments by fair value level: Debt securities: US Government Obligations 1,563,327$ -$ 1,563,327$ Municipal Obligations 39,105 - 39,105 Corporate Bonds 2,683,328 - 2,683,328 Foreign Bonds Notes & Debentures 35,490 - 35,490 Mortgage Backed Securitites 1,456,365 - 1,456,365 Total debt securities 5,777,615 - 5,777,615 Equity Securities: Common Stock 3,495,183 3,495,183 - Foreign Stock 403,022 403,022 - Mutual Funds - Equity 5,589,335 5,589,335 - Total equity securities 9,487,540 3,898,205 - Total investments at fair value 15,265,155$ 3,898,205$ 5,777,615$ MIAMI SHORES VILLAGE, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2022 41 NOTE 4 – FAIR VALUE MEASUREMENT (CONTINUED) Police Officers' Retirement Plan Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs 9/30/2022 (Level 1)(Level 2) Investments by fair value level: Debt securities: US Government Obligations 2,084,955$ -$ 2,084,955$ Municipal Obligations 78,210 - 78,210 Corporate Bonds 4,980,277 - 4,980,277 Foreign Bonds Notes & Debentures 60,839 - 60,839 Mortgage Backed Securitites 3,082,343 - 3,082,343 Total debt securities 10,286,624 - 10,286,624 Equity Securities: Common Stock 6,063,644 6,063,644 - Foreign Stock 699,315 699,315 - Mutual Funds - Equity 10,525,622 10,525,622 - Total equity securities 17,288,581 17,288,581 - Total investments at fair value 27,575,205$ 22,404,822$ 12,615,028$ NOTE 5 – RECEIVABLES Receivables as of September 30, 2022 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 69,031$ -$ -$ 122,934$ 9,726$ -$ -$ -$ 201,691$ Taxes 670,363 - - - - - 130,251 - 800,614 Special assessment - - - 47,419 6,051 3,397,385 - - 3,450,855 Grants and other 102,822 908,695 19,466 - - - - 24,243 1,055,226 Total receivables 842,216$ 908,695$ 19,466$ 170,353$ 15,777$ 3,397,385$ 130,251$ 24,243$ 5,508,386$ MIAMI SHORES VILLAGE, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2022 42 NOTE 6 – CAPITAL ASSETS Capital assets activity for the fiscal year ended September 30, 2022 was as follows: Governmental activities Beginning Increases Decreases Ending Capital assets not being depreciated: Land 2,386,158$ -$ -$ 2,386,158$ Construction in progress 803,951 1,277,321 (20,279) 2,060,993 Total capital assets not being depreciated 3,190,109 1,277,321 (20,279) 4,447,151 Capital assets being depreciated: Building and improvements 14,517,960 120,948 - 14,638,908 Infrastructure 24,523,535 195,930 - 24,719,465 Machinery and equipment 8,035,739 599,954 (84,812) 8,550,881 Intangible 1,115,621 38,863 - 1,154,484 Total capital assets being depreciated 48,192,855 955,695 (84,812) 49,063,738 Less accumulated depreciation for: Building and improvements (5,569,712) (304,866) - (5,874,578) Infrastructure (17,307,340) (518,592) - (17,825,932) Machinery and equipment (4,923,594) (765,271) 84,812 (5,604,053) Intangible (551,650) (130,492) - (682,142) Total accumulated depreciation (28,352,296) (1,719,221) 84,812 (29,986,705) Total capital assets being depreciated, net 19,840,559 (763,526) - 19,077,033 Governmental activities capital assets, net 23,030,668$ $ 513,795 $ (20,279)23,524,184$ Business-type activities Beginning Increases Decreases Ending Capital assets not being depreciated: Construction in progress 108,149$ 46,991$ (42,906)$ 112,234$ Total capital assets not being depreciated 108,149 46,991 (42,906) 112,234 Capital assets being depreciated: Machinery and equipment 2,590,565 - - 2,590,565 Drainage improvements 2,652,170 42,906 - 2,695,076 Total capital assets being depreciated 5,242,735 42,906 - 5,285,641 Less accumulated depreciation for: Machinery and equipment (1,607,435) (188,759) - (1,796,194) Drainage improvements (1,156,645) (78,082) - (1,234,727) Total accumulated depreciation (2,764,080) (266,841) - (3,030,921) Total capital assets being depreciated, net 2,478,655 (223,935) - 2,254,720 Business-type activities capital assets, net 2,586,804$ (176,944)$ (42,906)$ 2,366,954$ MIAMI SHORES VILLAGE, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2022 43 NOTE 6 – CAPITAL ASSETS (CONTINUED) Depreciation expense was charged to functions/programs of the Village as follows: Governmental activities General Government 167,124$ Public Safety 358,608 Public Works 762,033 Culture and Recreation 431,456 Total depreciation expense – governmental activities 1,719,221$ Business- type activities Solid Waste 188,759$ Stormwater 78,082 Total depreciation expense – business-type activities 266,841$ NOTE 7 – LONG-TERM DEBT 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 $200,300 in 2022 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 $947,000. The indenture contains a provision that in an event of default, outstanding amounts including accrued interest are due immediately. Debt service requirements to maturity for the fiscal year ending September 30, 2022 are summarized as follows: September 30,Principal Interes t Total 2023 201,800 62,324 264,124 2024 208,200 57,117 265,317 2025 214,200 51,752 265,952 2026 219,400 46,246 265,646 2027 224,200 40,612 264,812 2028-2032 1,223,100 112,623 1,335,723 2033 263,700 3,349 267,049 2,554,600$ 374,023$ 2,928,623$ MIAMI SHORES VILLAGE, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2022 44 NOTE 7 – LONG-TERM DEBT(CONTINUED) 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. 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, 2022 were as follows: Beginning Ending Due within Balance Increases Decreases Balance one year Governmental activities Bonds and notes payable: FL Refunding General Obligation Bond, Series 2013 $ 1,249,000 $ - $ (1,249,000) $ - $ - Refunding General Obligation Bond, Series 2015 2,754,900 - (200,300) 2,554,600 201,800 Total bonds and notes payable 4,003,900 - (1,449,300) 2,554,600 201,800 Other liabilities: OPEB liability 551,929 51,725 - 603,654 - Compensated absences 863,251 1,019,328 (868,380) 1,014,199 8,560 Total other liabilities 1,415,180 1,071,053 (868,380) 1,617,853 8,560 Governmental activity long-term liabilities 5,419,080$ 1,071,053$ (2,317,680)$ 4,172,453$ 210,360$ Business-type activities FLGFC Notes Payable 3,700,000$ -$ (60,000)$ 3,640,000$ 60,000$ Other liabilities: OPEB liability 19,632 6,057 - 25,689 - Compensated absences 73,467 103,756 (76,005) 101,218 25,304 Business-type activities long-term liabilities 3,793,099$ 109,813$ (136,005)$ 3,766,907$ 85,304$ 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. MIAMI SHORES VILLAGE, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2022 45 NOTE 8 – INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS The amount due to/from other funds at September 30, 2022 were as follows: Receivables Payables General Fund $ 2,256,485 $ - Grants - 2,080,952 ARPA - 175,533 Total $ 2,256,485 $ 2,256,485  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.  Amounts due from the American Rescue Plan fund to the general fund are for advances made to the fund to cover expenditures incurred until the receivables on those funds are collected. Interfund transfer activity for the year ended September 30, 2022 was as follows: Transfers In Transfers Out General Fund $ 700,000 $ 927,043 Solid Waste - 350,000 Stormwater - 50,000 Water & Wastewater 64,043 - Non-Major Governmental Funds 863,000 300,000 Internal Service Funds - - Total $ 1,627,043 $ 1,627,043 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 $863,000 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. MIAMI SHORES VILLAGE, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2022 46 NOTE 9 – EMPLOYEE RETIREMENT PLANS - PLANS’ REPORTING (CONTINUED) 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, 2021 (for the General Employees Plan) and October 1, 2021 for the Police Plan (the dates of the latest actuarial valuations) 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 34 Total members 134 63 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. MIAMI SHORES VILLAGE, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2022 47 NOTE 9 – EMPLOYEE RETIREMENT PLANS - PLANS’ REPORTING (CONTINUED) General Employees’ Retirement Plan (Continued) 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, 2022, there were 8 members in the DROP and their fair value of DROP investment was $304,086 which is included in the Plan’s net position. At the end of September 30, 2022, the Plan had no DROP Liability. Funding Requirement Plan members are required to contribute 6% of their annual covered salary. The Village contributes at actuarially determined rates that are designed to accumulate sufficient assets to pay benefits when due. Effective May 30, 2012, the Division of Retirement mandated that local governments confer with the Plan’s actuary to select and maintain contribution method (percentage of payroll or fixed dollar contributions) that best fits the funding requirements of the Plan. The Plan determined to use the “percentage of payroll contribution” method for the fiscal year ended September 30, 2022. Funding Requirement (Continued) The actual contribution from the Village for active members were actuarially determined using the actuarial valuation as of October 1, 2021 for the year ended September 30, 2022. The contributions consisted of the following at September 30, 2022: Actual Contribution Percentage of Covered Payroll Village 454,695 11.80% Members 206,640 N/A Net Pension Liability Total pension liability 19,169,337$ Plan fiduciary net position 15,551,704 Net pension liability 3,617,633$ Significant Actuarial Assumptions The total pension liability was determined by an actuarial valuation as of October 1, 2021 and rolled forward to the measurement date of September 30, 2022 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. MIAMI SHORES VILLAGE, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2022 48 NOTE 9 – EMPLOYEE RETIREMENT PLANS - PLANS’ REPORTING (CONTINUED) General Employees’ 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 2.25%. 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, 2022 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. 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 (asset) 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% 5,868,309$ $ 3,617,633 1,734,482$ Current Single Discount MIAMI SHORES VILLAGE, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2022 49 NOTE 9 – EMPLOYEE RETIREMENT PLANS - PLANS’ REPORTING (CONTINUED) General Employees’ Retirement Plan (Continued) Financial Information The Plan does not issue separate stand-alone financial statements, therefore, included below is the Statement of Plan Net Position and the Statement of Changes in Plan Net Position as of and for the fiscal year ended September 30, 2022. ASSETS Cash and cash equivalents $ 221,160 Investments, at fair value 15,265,155 Accrued interest receivable 65,389 Total assets 15,551,704 Net position restricted for pension 15,551,704$ ADDITIONS Contributions 661,335$ Net investment income (3,655,114) Miscellaneous 32 Total additions (2,993,747) DEDUCTIONS Pension benefits 1,203,300 Administrative expenses 62,357 Total deductions 1,265,657 Decrease (4,259,404) Net position restricted for pension Beginning of year 19,811,108 STATEMENT OF FIDUCIARY NET POSITION SEPTEMBER 30, 2022 STATEMENT OF CHANGES IN PLAN NET POSITION FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2022 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. MIAMI SHORES VILLAGE, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2022 50 NOTE 9 – EMPLOYEE RETIREMENT PLANS - PLANS’ REPORTING (CONTINUED) Police Officers' Retirement 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 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 $393,463 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, 2022. Pursuant to Chapter 185, Florida Statutes, a portion of all insurance premium tax monies received in excess of the threshold of $60,386 are to be uitlized to provide future minimum extra benefits and may not be used to reduce or offset the contribution requirements of the employer. The Village reports the contributions from the State of Florida as revenues and expenditures/expenses in the appropriate fund before being reported in the Plan. The actual contribution from the Village for active members were actuarially determined using the actuarial valuation as of October 1, 2021 for the year ended September 30, 2022. The contributions consisted of the following at September 30, 2022: Actual Contribution Percentage of Covered Payroll Village 1,150,000$ 39.80% State of Florida 109,624 3.79% Members 260,052 N/A Total contributions 1,519,676$ 43.59% Net Pension Liability Total pension liability 36,402,907$ Plan fiduciary net position 28,413,638 Net pension liability 7,989,269$ Plan fiduciary net position as a percentage of total pension liability 78.05% MIAMI SHORES VILLAGE, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2022 51 NOTE 9 – EMPLOYEE RETIREMENT PLANS - PLANS’ REPORTING (CONTINUED) Police Officers' Retirement Plan (Continued) Significant Actuarial Assumptions The total pension liability was determined by an actuarial valuation as of October 1, 2021 and rolled forward to the measurement date of September 30, 2022, 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 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, 2020 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, 2022 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. 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: MIAMI SHORES VILLAGE, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2022 52 NOTE 9 – EMPLOYEE RETIREMENT PLANS - PLANS’ REPORTING (CONTINUED) Police Officers' Retirement Plan (Continued) Sensitivity of the Net Pension Liability to the Single Discount Rate Assumption 1% Decrease Rate Assumption 1% Increase 6.00% 7.00% 8.00% 12,716,564$ 7,989,269$ 4,094,344$ 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, 2022. ASSETS Cash and cash equivalents $ 609,274 Investments, at fair value 27,575,205 Receivables 229,159 Total assets 28,413,638 Net position restricted for pension 28,413,638$ ADDITIONS Contributions 1,519,676$ Net investment income (6,233,165) Miscellaneous 46 Total additions (4,713,443) DEDUCTIONS Pension benefits 1,925,019 Administrative expenses 116,583 Total deductions 2,041,602 Decrease (6,755,045) Net position restricted for pension Beginning of year 35,168,683 End of year 28,413,638$ STATEMENT OF FIDUCIARY NET POSITION SEPTEMBER 30, 2022 STATEMENT OF CHANGES IN PLAN NET POSITION FOR THE FISCAL YEAR ENDED SEPTEMEBR 30, 2022 MIAMI SHORES VILLAGE, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2022 53 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, 2020) consisted of: General Employees Police Inactive employees: Retirees and beneficiaries currently receiveing benefits 65 30 Reitrees entitled to benefits but not yet receiving them 4 - Active participants: 72 34 Total members 141 64 General Employees’ Retirement Plan Plan Description The General Employees' Retirement System (the Plan) is a single-employer defined benefit pension plan that covers all Village employees, except for police, and certain appointed employees. The Plan was established on January 1, 1957 by the Village Council. On December 31, 1999, the Plan was split between the general employees and the police officers. The Plan is governed by certain provisions of Chapter 112, Florida Statutes. The Board of Trustees for the Plan administers the Plan. Plan amendments must be authorized by the Village Council. The Plan provides retirement and death benefits to Plan members and beneficiaries. The Plan does not issue a separate financial report. Deferred Retirement Option Plan Effective December 5, 2006, current employees may elect to participate in the deferred retirement option plan (DROP) the first day of the month coincident with or next following the date of normal retirement. Election into the DROP is voluntary. The employee may elect to participate in the plan for a maximum of 60 months. Once participation in the DROP commences, such participation constitutes an irrevocable election. A member's continuous service and accrued benefit under the Plan shall be determined and frozen on the effective date of the employee's election to participate in the DROP. Additional continuous service or benefits under the Plan shall not be accrued. No payments are made directly to the employee from the Plan while the member participates in the drop plan. MIAMI SHORES VILLAGE, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2022 54 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, 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 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, 2022. 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, 2022. 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 (Asset): The Village's net pension liability (asset) was measured as of September 30, 2021. The total pension liability used to calculate the net pension liability (asset) was determined as of that date. MIAMI SHORES VILLAGE, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2022 55 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, 2021 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, 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% 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 BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2022 56 NOTE 10 – EMPLOYEE RETIREMENT PLANS VILLAGE’S REPORTING (CONTINUED) General Employees’ Retirement Plan (Continued) Changes in Net Pension Liability (Asset) Total Pension Liability (a) Plan Fiduciary Net Position (b) Net Pension Liability (Asset) (a)-(b) Reporting period ending at September 30, 2021 18,200,300$ 16,827,923$ 1,372,377$ Service Cost 425,088 - 425,088 Interest 1,256,791 - 1,256,791 Changes of assumptions - - Difference between actual & expected experience 109,057 - 109,057 Contributions - Employer - 454,695 (454,695) Contributions - Member - 231,206 (231,206) Benefit Payments (1,342,454) - (1,342,454) Net Investment Income - 3,683,932 (3,683,932) Benefit Payments - (1,342,454) 1,342,454 Administrative Expense - (44,194) 44,194 Reporting period ending at September 30, 2022 18,648,782$ 19,811,108$ (1,162,326)$ Plan Fiduciary Net Position as a Percentage of Total Pension Liability 106.23% Covered Payroll 3,853,433$ Net Pension Liability (Asset) as a Percentage of Covered Payroll -30.16% Increase (Decrease) Sensitivity of the Net Pension Liability (Asset) to the Single Discount Rate Assumption The following presents the plan’s net pension liability (asset), 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% 1,044,363$ $ (1,162,326) (3,006,360)$ Current Single Discount Pension Expense and Deferred Outflows/(Inflows) of Resources For the year ended September 30, 2021, the Village will recognize pension expense of ($591,900). At September 30, 2022, the Village reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Outflows of Resources Deferred Inflows of Resources Difference between expected and actual experience 86,223$ -$ Changes in assumptions 209,639 - Net difference between projected and actual earnings on pension plan investments - 2,010,635 Total 295,862$ 2,010,635$ MIAMI SHORES VILLAGE, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2022 57 NOTE 10 – EMPLOYEE RETIREMENT PLANS - VILLAGE’S REPORTING (CONTINUED) General Employees’ Retirement Plan (Continued) The Village contributions subsequent to the measurement date of $454,695 are reported as deferred outflows of resources and will be recognized as a reduction of the net pension liability in the fiscal year ending September 30, 2022 (which will include the net pension liability measured at September 30, 2021). Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: Fiscal year ending September 30, Net Deferred Outflows of Resources 2023 (358,425)$ 2024 (305,532) 2025 (544,716) 2026 (506,100) 2027 - 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 BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2022 58 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 $393,463 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 $60,386 are to be utlized to provide future minimum extra benefits and may not be used to reduce or offset the contribution requirements of the employer. The actual contribution from the Village for active members were actuarially determined using the actuarial valuation as of October 1, 2020 for the year ended September 30, 2022. The contributions consisted of the following at September 30, 2021: Actual Contribution Percentage of Covered Payroll Village 1,336,493 44.29% State of Florida 110,178 3.65% Members 271,555 N/A Total contributions 1,718,226$ 47.95% Net Pension Liability (Asset): The Village's net pension liability (asset) was measured as of September 30, 2021 and the total pension liability used to calculate the net pension liability (asset) was determined by the October 1, 2020 actuarial valuation. 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 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 ofretirementis 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, 2020 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 BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2022 59 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, 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% 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. Changes in Net Pension Liability (Asset) Total Pension Liability (a) Plan Fiduciary Net Position (b) Net Pension Liability (Asset) (a)-(b) Reporting period ending at September 30, 2021 33,113,657$ 28,736,666$ 4,376,991$ Service Cost 864,180 - 864,180 Interest 2,327,492 - 2,327,492 Change of Benefit Terms - - - Difference between actual & expected experience (95,445) - (95,445) Contributions - Employer - 1,336,493 (1,336,493) Contributions - State - 110,178 (110,178) Contributions - Employee (Including Buyback Contributions) - 271,555 (271,555) Change of Assumptions - - - Net Investment Income - 6,252,510 (6,252,510) Benefit Payments (1,455,900) (1,455,900) - Administrative Expense - (82,819) 82,819 Other (Changes in State Contribution Reserve 13,865 - 13,865 Reporting period ending at September 30, 2022 34,767,849$ 35,168,683$ (400,834)$ Plan Fiduciary Net Position as a Percentage of Total Pension Liability 101.15% Covered Payroll 3,017,278$ Net Pension Liability (Asset) as a Percentage of Covered Payroll -13.28% Increase (Decrease) MIAMI SHORES VILLAGE, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2022 60 NOTE 10 – EMPLOYEE RETIREMENT PLANS - VILLAGE’S REPORTING (CONTINUED) Police Officers' Retirement Plan (Continued) Sensitivity of the Net Pension Liability (Asset) to the Single Discount Rate Assumption The following presents the plan’s net pension liability (asset), calculated using a single discount rate of 7.00%, as well as what the plan’s net pension liability (asset) 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% 4,141,822$ $ (400,834) (4,137,383)$ Current Single Discount For the year ended September 30, 2020, the Village will recognize pension expense of ($1,625,513). At September 30, 2020 the Village reported deferred inflows of resources related to pensions from the following sources: Deferred Outflows of Resources Deferred Inflows of Resources Difference between expected and actual experience 33,986$ 380,895$ Changes in assumptions 525,623 5,955 Net difference between projected and actual earnings on pension plan investments - 3,398,411 Total 559,609$ 3,785,261$ The Village contributions subsequent to the measurement date of $1,256,624 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 2023 (963,625) 2024 (678,303) 2025 (828,088) 2026 (748,566) 2027 (7,070) Thereafter - Reconciliation of pension activity to statement of Net Position General Employees Police Officers' Total Net pension liability (asset) (1,162,326) (400,834) (1,563,160) Deferred outflows of resources 295,862 559,609 855,471 Deferred inflows of resources 2,010,635 3,785,261 5,795,896 Pension expense (591,900) (1,625,513) (2,217,413) MIAMI SHORES VILLAGE, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2022 61 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. There are no assets accumulated in a GASB- compliant trust. The Village provides all financial information and requires 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, 2021 (the date of the latest actuarial valuations) health care and dental plan participants consisted of: Active participants 97 Retired participants 5 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 BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2022 62 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 $629,343 was determined as of September 30, 2021. Actuarial assumptions and other inputs The total OPEB liability in the September 30, 2021 actuarial valuation was determined using the following actuarial assumptions and other inputs, applied to all periods included in the measurement unless otherwise specified. Valuation Date: September 30, 2021 Measurement Date: September 30, 2021 Actuarial Cost Method Entry Age Normal Inflation 2.25% Discount Rate 2.41% Salary Increases Retirement Age Mortality Healthcare Cost Trend Rates Aging factors Based on the 2013 SOA Study "Health Care Costs - From Birth to Death". Based on the Getzen Model, with trend starting at 9.00% to reflect actual premiums for 2022, then 5.76% for 2023 and gradually decreasing to an ultimate trend rate of 3.75% . 5.00%, including inflation for General Employees; and 6.00%, including inflation for Police Officers Experience-based table of rates that are specific to the type of eligiblity condition and employment class (Police or General). Mortality tables used in the July 1, 2021 actuarial valuation of the Florida Retirement System. These rates were taken from adjusted Pub-2010 mortality tables published by the SOA with generational mortality improvements using Scale MP-2018. Adjustments to reference tables are based on the results of a statewide experience study covering the period 2013 through 2018. Changes in the Total OPEB Liability Balance at 9/30/21 571,561$ Changes for the year: Service cost 41,716 Interest 14,477 Difference between expected and actual experience of the Total OPEB Liability (79,174) Changes in assumptions and other input 105,889 Benefit payments (25,126) Net change in OPEB liability 57,782 Balance at 9/30/22 629,343$ MIAMI SHORES VILLAGE, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2022 63 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 2.19%, 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 1.19%2.19%3.19% 675,491$ 629,343$ 585,535$ 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 558,489$ 629,343$ 713,614$ Current Healthcare Cos t OPEB Expenses and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB For the year ended September 30, 2022, the Village Plan recognized OPEB expenses of ($57,782). At September 30, 2021, the Plan reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: Deferred Outflows of Deferred Inflows of Resources Resources Difference between expected and actual experience 13,251$ 71,257$ Changes in assumptions and other inputs 97,255 134,974 Total 110,506$ 206,231$ Benefits paid after the measuerment date of $31,243 are reported as deferred outflows of resources and will be recognized as a reduction of total OPEB liability in FYE September 30, 2023. 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 years. MIAMI SHORES VILLAGE, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2022 64 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 2023 (16,187) 2024 (16,187) 2025 (16,187) 2026 (16,187) 2027 (14,679) Thereafter (16,298) NOTE 14 – SHARE PLAN The Miami Shores Village Police Pension Share Plan (the “Share Plan”) was created to implement the provisions of Chapter 185, Florida Statutes, and to provide a means whereby police officers of the Village may receive benefits from the funds provided for that purpose by Chapter 185, Florida Statutes. The Share Plan is in addition to any other benefits and shall not in any way affect any other benefits that now or hereafter exist. The additional premium tax revenue, as defined by Chapter 185, Florida Statutes, received each year beginning with the year 2000 will be allocated equally to all eligible active and retired members no later than December 1st each year. The amounts allocated to retired members will be distributed annually. The amounts allocated to active members will be maintained in their individual share account and earn interest at the same rate as the Plan until retirement upon which time the share accounts will be distributed. A summary of the changes in the Share Plan balance as of September 30, 2022 is as follows: Beginning balance 267,683$ Additions 13,588 Distributions - Interest (34,314) Ending balance 246,957$ NOTE 15 – 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 $163,426. This amount is expected to be funded by the normal operations of the fund. NOTE 16 – PRIOR PERIOD ADJUSTMENTS During the fiscal year ended September 30, 2022, the fund balances for the General Fund and the Building Fund have been adjusted to comply with State Reporting Requirements. General Building Fund Fund Fund balances - beginning, as previously reported 10,615,044$ -$ Correction for compliance with State Reporting Requirements (55,142) 55,142 Fund balances - beginning, as restated 10,559,902$ 55,142$ Fund Financial Statements REQUIRED SUPPLEMENTARY INFORMATION MIAMI SHORES VILLAGE BUDGETARY COMPARISON SCHEDULE GENERAL FUND FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2022 Variance with Final Budget - Actual Positive Original Final Amounts (Negative) REVENUES Taxes: Property taxes 9,900,240$ 9,900,240$ 10,158,979$ 258,739$ Utility service taxes 1,101,000 1,163,865 1,204,048 40,183 Communications service taxes 345,000 345,000 437,757 92,757 Local business taxes 71,500 71,500 90,007 18,507 Total taxes 11,417,740 11,480,605 11,890,791 410,186 Permits, fees and special assessments: Permits - 35,800 24,916 (10,884) Franchise fees 637,000 769,680 834,129 64,449 Other permits and special assessments 147,800 112,000 139,113 27,113 Total permits, fees and special assessments 784,800 917,480 998,158 80,678 Intergovernmental revenues: State shared revenues 985,795 1,215,795 1,459,511 243,716 Other 61,735 61,735 72,982 11,247 Total intergovernmental revenues 1,047,530 1,277,530 1,532,493 254,963 Charges for services: General government 39,300 39,300 43,483 4,183 Public safety 580,000 580,000 735,751 155,751 Public works 43,000 43,000 33,880 (9,120) Culture and recreation 1,295,117 1,299,117 1,345,295 46,178 Other 750 750 176 (574) Total charges for services 1,958,167 1,962,167 2,158,585 196,418 Fines and forfeitures: Local ordinance violations 152,800 152,800 257,395 104,595 Other 13,500 13,500 20,233 6,733 Total fines and forfeitures 166,300 166,300 277,628 111,328 Miscellaneous: Interest and other earnings 19,960 19,960 53,074 33,114 Rents and royalties 230,000 230,000 230,000 - Other 20,800 20,800 16,049 (4,751) Total miscellaneous 270,760 270,760 299,123 28,363 Total revenues 15,645,297$ 16,074,842$ 17,156,778$ 1,081,936$ Budgeted Amounts See notes to basic financial statements. 65 MIAMI SHORES VILLAGE BUDGETARY COMPARISON SCHEDULE GENERAL FUND FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2022 Variance with Final Budget - Actual Positive Original Final Amounts (Negative) EXPENDITURES Current: General government: Legislative 138,760$ 307,944$ 156,182$ 151,762 Executive 850,424 999,019 958,296 40,723 Financial administrative 503,832 461,267 399,177 62,090 Legal counsel 246,800 228,300 140,570 87,730 Comprehensive planning 221,496 293,125 250,947 42,178 Other 1,185,770 1,170,566 939,209 231,357 Total general government 3,147,082 3,460,221 2,844,381 615,840 Public Safety: Law enforcement 7,590,516 7,738,452 7,383,721 354,731 Other 251,006 263,506 254,447 9,059 Total public safety 7,841,522 8,001,958 7,638,168 363,790 Public works: Physical environment 1,934,231 1,989,171 1,836,178 152,993 Total public works 1,934,231 1,989,171 1,836,178 152,993 Culture and recreation: Libraries 504,147 504,947 476,100 28,847 Parks and recreation 2,854,272 3,002,270 2,677,702 324,568 Total culture and recreation 3,358,419 3,507,217 3,153,802 353,415 Total expenditures 16,281,254 16,958,567 15,472,529 1,486,038 Excess (deficiency) of revenues over expenditures (635,957) (883,725) 1,684,249 2,567,974 OTHER FINANCING SOURCES (USES) Transfers in 700,000 700,000 700,000 - Transfers out (927,043) (927,043) (927,043) - Total other financing sources and uses (227,043) (227,043) (227,043) - Appropriation of fund balance 863,000.00 1,110,768 - 1,110,768 Net change in fund balances 1,457,206 Fund balances - beginning 10,615,044 Prior period adjustment - See Note 15 (55,142) Fund balances, beginning of year, as restated 10,559,902 Fund balances - ending 12,017,108$ Budgeted Amounts See notes to basic financial statements. 66 MIAMI SHORES VILLAGE, FLORIDA NOTES TO BUDGETARY COMPARISON SCHEDULE SEPTEMBER 30, 2022 67 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 $677,313, during the fiscal year ended September 30, 2022 for funding outstanding obligations and unanticipated expenses f)Unencumbered appropriations lapse at year end. Reporting fiscal year ending September 30,20222021202020192018201720162015Measurement fiscal year ending September 30,20212020201920182017201620152014Total Pension LiabilityService Cost425,088$ 393,715$ 374,153$ 355,620$ 345,113$ 315,449$ 325,868$ 308,880$ Interest1,256,791 1,266,525 1,197,271 1,129,866 1,134,060 1,079,053 1,018,010 960,279 Difference between actual & expected experienceof the Total Pension Liability109,057 - 35,435 - (931,742) - 106,918 (7,788) Changes of Assumptions- 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 Liability448,482 1,311,226 992,373 888,753 (82,919) 1,072,785 795,276 859,678 Total Pension Liability - Beginning18,200,300 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)18,648,782$ 18,200,300$ 16,889,074$ 15,896,701$ 15,007,948$ 15,090,867$ 14,018,082$ 13,222,806$ Plan Fiduciary Net PositionContributions - 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 Position2,983,185 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)(1,162,326)$ 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 106.23% 92.46% 92.86% 95.91% 91.87% 81.50% 81.14% 88.07%Covered Payroll 13,853,433$ 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-30.16%37.93%33.96%19.34%39.25%88.72%84.03%52.69%1This schedule is presented to illustrate the requirement to show information for 10 years. However, until a full 10-year trend is compiled, pension plans should present information for those years for 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, FLORIDAREQUIRED SUPPLEMENTARY INFORMATIONSCHEDULE OF CHANGES IN VILLAGE'S NET PENSION LIABILITY AND RELATED RATIOSGENERAL EMPLOYEES' RETIREMENT SYSTEM (VILLAGE'S REPORTING)(as required by GASB Statement No. 68)See notes to basic financial statements.68 Fiscal year ending September 30,202220212020201920182017201620152014Total Pension LiabilityService Cost430,426$ 425,088$ 393,715$ 374,153$ 355,620$ 345,113$ 315,449$ 325,868$ 308,880$ Interest1,285,795 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 116,691 - 442,573 - 645 - 317,996 - - Benefit Payments (1,203,300) (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 Liability629,612 339,425 1,346,661 956,938 (42,989) 848,823 1,179,703 688,358 859,678 Total Pension Liability - Beginning18,539,725 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)19,169,337$ 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 PositionContributions - Employer 454,695$ 454,695$ 403,199$ 403,200$ 443,102$ 443,102$ 371,453$ 371,453$ 261,966$ Contributions - Member 206,640 231,206 217,098 212,987 201,687 186,555 188,786 188,793 179,680 Net Investment Income (3,655,082) 3,683,932 1,373,773 472,706 1,452,542 1,531,913 1,074,730 (160,205) 715,959 Benefit Payments (1,203,300) (1,342,454) (791,587) (614,486) (597,378) (630,350) (639,713) (655,520) (373,038) Refunds- - - - - - - - (28,655) Administrative Expense (62,357) (44,194) (58,202) (37,520) (40,842) (42,936) (69,962) (15,448) (29,411) Net Change in Plan Fiduciary Net Position(4,259,404) 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 19,811,108 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) 15,551,704$ 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)3,617,633$ (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 81.13% 106.86% 92.46% 93.06% 95.91% 86.50% 81.50% 81.76% 88.07%Covered Payroll 13,444,000$ 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 105.04% -32.99% 37.93% 32.96% 19.34% 69.21% 88.72% 80.63% 52.69%1This schedule is presented to illustrate the requirement to show information for 10 years. However, until a full 10-year trend is compiled, pension plans should present information for those years for which information is available.(as required by GASB Statement No. 67)MIAMI SHORES VILLAGE, FLORIDAREQUIRED SUPPLEMENTARY INFORMATIONSCHEDULE OF CHANGES IN VILLAGE'S NET PENSION LIABILITY AND RELATED RATIOSGENERAL EMPLOYEES' RETIREMENT SYSTEM (PLAN'S REPORTING)Covered Payroll was calculated by dividing the total member contributions for the fiscal year by the member contribution rate of 6%.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) Payroll Covered Payroll 2022 454,695$ 454,695$ -$ 3,444,000$ 13.20% 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 Notes to the Schedule of Contributions MIAMI SHORES VILLAGE, FLORIDA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF CONTRIBUTIONS GENERAL EMPLOYEES' RETIREMENT SYSTEM (VILLAGE'S REPORTING) Note: Covered Payroll was calculated by dividing the total member contributions for the fiscal year by the member contribution rate of 6%. (as required by GASB Statement No. 68) This schedule is presented to illustrate the requirement to show information for 10 years. However, until a full 10-year trend is compiled, pension plans should present information for those years for which information is available. Experience-based table of rates that are specific to the type of eligibility condition. 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 three years prior to the end of the fiscal year in which contributions are reported. See notes to basic financial statements. 70 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$ - 3,444,000$ 13.20% 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 October 1, 2020 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. 71 Fiscal year ending September 30, Annual Money-Weighted Rate of Return, Net of Investment Expense 2022 -18.99% 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% MIAMI SHORES VILLAGE, FLORIDA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF INVESTMENT RETURNS GENERAL EMPLOYEES' RETIREMENT SYSTEM See notes to basic financial statements. 72 Reporting fiscal year ending September 30,20222021202020192018201720162015Measurement fiscal year ending September 30,20212020201920182017201620152014Total Pension LiabilityService Cost864,180$ 826,391$ 737,909$ 686,704$ 660,242$ 536,463$ 554,721$ 672,275$ Interest2,327,492 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) Other13,865 11,359 (235,974) 69,509 70,382 65,088 - 113,175 Net Change in Total Pension Liability1,654,192 2,479,179 351,740 566,158 1,693,758 1,844,885 1,102,577 1,406,663 Total Pension Liability - Beginning33,113,657 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 PositionContributions - Employer (from Village)1,336,493$ 808,455$ 1,116,211$ 1,165,400$ 1,105,854$ 1,122,197$ 1,249,668$ 11,207,161$ Contributions - Employer (from State)110,178 105,165 214,608 3 99,702 100,575 95,281 - 2173,561 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) (39,391) Net Change in Plan Fiduciary Net Position6,432,017 2,014,370 15,554 2,625,584 2,900,253 2,125,962 276,423 1,535,033 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 17,243,487 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%123This 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, FLORIDAREQUIRED SUPPLEMENTARY INFORMATIONSCHEDULE OF CHANGES IN VILLAGE'S NET PENSION LIABILITY AND RELATED RATIOSPOLICE OFFICERS' RETIREMENT SYSTEM (VILLAGE'S REPORTING)Includes receivable Employer contribution in the amount of $32,922 for fiscal year ending September 30, 2015.(as required by GASB Statement No. 68)State contributions for fiscal year ending September 30, 2015 were not received until after the end of the fiscal year (therefore not permitted to be used until next fiscal year).Two year's worth of state contributions were received in fiscal year ending September 30,2019See notes to basic financial statements.73 Fiscal year ending September 30,202220212020201920182017201620152014Total Pension LiabilityService Cost916,556$ 864,180$ 826,391$ 737,909$ 686,704$ 660,242$ 536,463$ 554,721$ 672,275$ Interest2,430,533 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 experience199,400 (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(1,925,019) (1,455,900) (1,425,391) (2,437,760) (1,279,385) (950,094) (1,023,327) (941,093) (1,180,510) Other13,588 13,865 11,359 (235,974) 69,509 70,382 65,088 - 113,175 Net Change in Total Pension Liability1,635,058 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 - Beginning34,767,849 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)36,402,907$ 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 PositionContributions - Employer 1,150,000$ 1,336,493$ 808,455$ 1,116,211$ 1,165,400$ 1,105,854$ 1,122,197$ 1,249,668$ 1,207,161$ Contributions - Employer (from State)109,624 110,178 105,165 214,608 99,702 100,575 95,281 - 173,561 Contributions - Member 260,052 271,555 264,605 249,510 231,040 210,630 191,425 180,728 205,660 Net Investment Income (6,233,120) 6,252,510 2,347,637 936,089 2,464,134 2,495,997 1,818,553 (201,097) 1,168,552 Benefit Payments (1,925,019) (1,455,900) (1,425,391) (2,437,760) (1,279,385) (950,094) (1,023,327) (941,093) (1,180,510) Administrative Expense(116,582) (82,819) (86,101) (63,104) (55,307) (62,709) (78,167) (11,783) (39,392) Net Change in Plan Fiduciary Net Position(6,755,045) 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 35,168,683 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) 28,413,638$ 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)7,989,269$ (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 78.05% 101.15% 86.78% 87.23% 88.19% 81.04% 75.58% 72.79% 74.89%Covered Payroll 2,889,467 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 276.50% -13.28% 148.87% 141.12% 139.30% 240.80% 321.68% 354.72% 275.56%123This 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, FLORIDAREQUIRED SUPPLEMENTARY INFORMATIONSCHEDULE OF CHANGES IN VILLAGE'S NET PENSION LIABILITY AND RELATED RATIOSPOLICE OFFICERS' RETIREMENT SYSTEM (PLAN'S REPORTING)State contributions for fiscal year ending September 30, 2015 were not received until after the end of the fiscal year (therefore not permitted to be used until next fiscal year).Includes receivable Employer contribution in the amount of $32,922 for fiscal year ending September 30, 2015.Two years' worth of State contributions were received in fiscal year ending September 30, 2019.See notes to basic financial statements.74 Fiscal Year Actuarially Contribution Actual Contribution Ending Determined Actual Deficiency Covered as a % of September 30,Contribution Contribution (Excess) Payroll3 Covered Payroll 2022 1,334,228$ 1,246,036$ 88,192$ 5 2,889,467$ 43.12% 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 5 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. As of October 1, 2021, the Village had a prepaid contribution of $258,602, of which $88,192 was used to satisfy the Village's contribution requirement for fiscal year ending September 30, 2022. Actuarial Cost Method Notes to the Schedule of Contributions October 1, 2020 Actuarially determined contribution rates are calculated as of October 1, which is two years prior to the end of the fiscal year in which contributions are reported. Entry Age Normal Level Dollar, Closed 5-year smoothed market All actives are assumed to retire when first eligible for Normal Retirement. The rate of retirement is 1% for each year of eligibility for Early Retirement. This schedule is presented to illustrate the requirement to show information for 10 years. However, until a full 10-year trend is compiled, pension plans should present information for those years for which information is available. 20 years 2.25% 7.00% The same versions of Pub-2010 Headcount-Weighted Mortality Tables as used by the Florida Reitrement System (FRS) in their July 1, 2020 actuarial valuation (with mortality improvements projected to all future years after 2010 using Scale MP-2018). Florida Statutes Chapter 112.63(1)(f) mandates the use of mortality tables from one of the two most recently published FRS actuarial valuation reports. See notes to basic financial statements. 75 Fiscal Year Actuarially Contribution Actual Contribution Ending Determined Actual Deficiency Covered as a % of September 30,Contribution Contribution (Excess) Payroll Covered Payroll 2022 1,334,228$ 1,246,036$ 88,192$ 5 2,889,467$ 43.12% 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 5 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. As of October 1, 2021, the Village had a prepaid contribution of $258,602, of which $88,192 was used to satisfy the Village's contribution requirement for fiscal year ending September 30, 2022. The same versions of PUB-2010 Headcount-Weighted Mortality Tables as used by the Flordia Retirement System (FRS) in their July 1, 2020 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, 2020 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 $32,922 for fiscal year ending September 30, 2015. (as required by GASB Statement No. 67) See notes to basic financial statements. 76 Fiscal year ending September 30, Annual Money-Weighted Rate of Return, Net of Investment Expense 2022 -18.07% 2021 21.19% 2020 8.44% 2019 3.33% 2018 9.83% 2017 11.22% 2016 8.97% 2015 -0.90% 2014 6.30% 2013 9.48% MIAMI SHORES VILLAGE, FLORIDA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF INVESTMENT RETURNS POLICE OFFICERS' RETIREMENT SYSTEM See notes to basic financial statements. 77 Total OPEB Liability:2022 2021 2020 2019 2018Service cost41,716$ 39,045$ 42,514$ 43,470$ 48,122$ Interest14,477 15,522 25,990 23,391 22,769 Changes of benefit terms- - - - (48,084) Differences between expected and actual experienceof the Total OPEB Liability(79,174) - 19,098 - - Changes in assumptions105,889 2,425 (167,258) (16,935) (20,041) Benefit payments(25,126) (21,661) (40,376) (36,994) (91,579) Net Change in total OPEB liability57,782 35,331 (120,032) 12,932 (88,813) Total OPEB liability- beginning571,561536,230656,262643,330732,143Total OPEB liability- ending629,343$ 571,561$ 536,230$ 656,262$ 643,330$ Covered-employee payroll5,701,644$ 7,327,367$ 6,004,403$ 6,190,210$ 5,980,879$ Total OPEB liability as a percentage of covered payroll11.04%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 yearsfor 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, FLORIDAREQUIRED SUPPLEMENTARY INFORMATIONSCHEDULE OF CHANGES IN TOTAL OPEB LIABILITY AND RELATED RATIOSSEPTEMBER 30, 2022See notes to basic financial statements.78 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. Building Fund - This fund was created in FY2022 to comply with State Reporting requirements. 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. MIAMI SHORES VILLAGE COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS SEPTEMBER 30, 2022 Special Revenue Funds Local Law Brockway Transportation Option Enforcement General Memorial Building Surtax Gas Tax Training Trust Expansion Fund Total ASSETS Cash and cash equivalents 1,049,352$ 572,925$ 32,725$ 966,912$ 111,782$ 266,997$ 3,000,693 Accounts receivable, net 99,762 27,628 163 - - 711 128,264 Total assets 1,149,114$ 600,553$ 32,888$ 966,912$ 111,782$ 267,708$ 3,128,957$ LIABILITIES AND FUND BALANCES Liabilities: Accounts payable and accrued liabilities 5,937 28,643 - 431,044 405 24,316 490,345 Unearned revenue 60,386 - - - - - 60,386 Total liabilities 66,323 28,643 - 431,044 405 24,316 550,731 Fund balances: Restricted 1,082,791 503,459 32,888 535,868 111,377 243,392 2,509,775 Assigned - 68,451 - - - - 68,451 Total fund balances 1,082,791 571,910 32,888 535,868 111,377 243,392 2,578,226 Total liabilities and fund balances 1,149,114$ 600,553$ 32,888$ 966,912$ 111,782$ 267,708$ 3,128,957$ 79 COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS SEPTEMBER 30, 2022 Debt Service Capital Projects Total Capital Nonmajor Improvement Governmental GO Bonds Fund Total Funds ASSETS Cash and cash equivalents 142,508$ 1,700,437$ 1,700,437$ 4,843,638$ Accounts receivable, net 1,987 - - 130,251 Total assets 144,495$ 1,700,437$ 1,700,437$ 4,973,889$ LIABILITIES AND FUND BALANCES Liabilities: Accounts payable - 59,790 59,790 550,135 Total liabilities - 59,790 59,790 610,521 Fund balances: Restricted 144,495 - - 2,654,270 Committed - 1,640,647 1,640,647 1,640,647 Assigned - - - 68,451 Total fund balances 144,495 1,640,647 1,640,647 4,363,368 Total liabilities and fund balances 144,495$ 1,700,437$ 1,700,437$ 4,973,889$ MIAMI SHORES VILLAGE 80 MIAMI SHORES VILLAGE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE NONMAJOR GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2022 Special Revenue Funds Local Law Brockway Transportation Option Enforcement General Memorial Building Surtax Gas Tax Training Trust Expansion Fund Total REVENUES Fees and fines -$ -$ 2,607$ -$ -$ -$ 2,607$ Licenses and permits - - - 61,089 - 1,218,554 1,279,643 Intergovernmental 541,290 373,867 - - - - 915,157 Grants contributions and donations - - - 26,704 2,715 - 29,419 Investment earnings 1,143 892 - 906 2,277 - 5,218 Total revenues 542,433 374,759 2,607 88,699 4,992 1,218,554 2,232,044 EXPENDITURES Current: Public safety - - 7 7,408 - 730,304 737,719 Public works 135,882 257,857 - - - - 393,739 Culture and recreation - - - 37,510 18,444 - 55,954 Capital outlay 2,580 47,960 - 14,612 390,444 - 455,596 Total expenditures 138,462 305,817 7 59,530 408,888 730,304 1,643,008 Excess (deficiency) of revenues over expenditures 403,971 68,942 2,600 29,169 (403,896) 488,250 589,036 OTHER FINANCING SOURCES (USES) Transfers out - - - - - (300,000) (300,000) Total other financing sources and uses - - - - - (300,000) (300,000) Net change in fund balances 403,971 68,942 2,600 29,169 (403,896) 188,250 289,036 Fund balances (deficit) - beginning of year 678,820 502,968 30,288 506,699 515,273 - 2,234,048 Prior period adjustment - See Note 15 - - - - - 55,142 55,142 Fund balances, beginning of year, as restated 678,820 502,968 30,288 506,699 515,273 55,142 2,289,190 Fund balances - ending 1,082,791$ 571,910$ 32,888$ 535,868$ 111,377$ 243,392$ 2,578,226$ 81 Debt Service Capital Project Total Capital Nonmajor Improvement Governmental GO Bonds Fund Total Funds REVENUES Property taxes 464,699$ -$ -$ 464,699$ Fees and fines - - - 2,607 Licenses and permits - - - 1,279,643 Intergovernmental - - - 915,157 Grants contributions and donations - - - 29,419 Investment earnings 615 2,485 2,485 8,318 Total revenues 465,314 2,485 2,485 2,699,843 EXPENDITURES Current: General government 5,000 - - 5,000 Public safety - - - 737,719 Public works - - - 393,739 Culture and recreation - - - 55,954 Debt Service Principal 1,449,300 - - 1,449,300 Interest and other charges 82,588 - - 82,588 Capital outlay - 490,239 490,239 945,835 Total expenditures 1,536,888 490,239 490,239 3,670,135 Excess (deficiency) of revenues over expenditures (1,071,574) (487,754) (487,754) (970,292) OTHER FINANCING SOURCES (USES) Transfers in - 863,000 863,000 863,000 Transfers out - - - (300,000) Total other financing sources and uses - 863,000 863,000 563,000 Net change in fund balances (1,071,574) 375,246 375,246 (407,292) Fund balances (deficit) - beginning of year 1,216,069 1,265,401 1,265,401 4,715,518 Prior period adjustment - See Note 15 - - - 55,142 Fund balances, beginning of year, as restated 1,216,069 1,265,401 1,265,401 4,770,660 Fund balances - ending 144,495$ 1,640,647$ 1,640,647$ 4,363,368$ MIAMI SHORES VILLAGE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE NONMAJOR GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2022 82 MIAMI SHORES VILLAGE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE FUND BALANCES - BUDGET AND ACTUAL NONMAJOR GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2022 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 Intergovernmental 381,250$ 381,250$ 541,290$ 160,040$ 320,177$ 345,177$ 373,867$ 28,690$ Investment earnings 420 420 1,143 723 600 600 892 292 Total revenues 381,670 381,670 542,433 160,763 320,777 345,777 374,759 28,982 EXPENDITURES Current: Public works 229,490 229,490 135,882 93,608 289,228 289,228 257,857 31,371 Capital outlay 152,180 215,636 2,580 213,056 100,000 125,000 47,960 77,040 Total expenditures 381,670 445,126 138,462 306,664 389,228 414,228 305,817 108,411 Excess (deficiency) of revenues over expenditures - (63,456) 403,971 467,427 (68,451) (68,451) 68,942 137,393 Appropriation of fund balance - - - - 68,451 68,451 - 68,451 Net change in fund balances 403,971 68,942 Fund balances - beginning 678,820 502,968 Fund balances - ending 1,082,791$ 571,910$ Budgeted Amounts Budgeted Amounts 83 MIAMI SHORES VILLAGE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE FUND BALANCES - BUDGET AND ACTUAL NONMAJOR GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2022 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 455,880$ 455,880$ 464,699$ 8,819$ -$ -$ -$ -$ Investment earnings 2,000 2,000 615 (1,385) - - 2,485 2,485 Total revenues 457,880 457,880 465,314 7,434 - - 2,485 2,485 EXPENDITURES Current: General government 7,000 7,000 5,000 2,000 - - - - Debt service: Principal 345,300 1,449,300 1,449,300 - - - - - Interest and other charges 105,580 82,575 82,588 (13) - - - - Capital outlay - - - - 863,000 1,720,394 490,239 1,230,155 Total expenditures 457,880 1,538,875 1,536,888 1,987 863,000 1,720,394 490,239 1,230,155 Excess (deficiency) of revenues over expenditures - (1,080,995) (1,071,574) 9,421 (863,000) (1,720,394) (487,754) 1,232,640 OTHER FINANCING SOURCES (USES) Transfers in - - - - 863,000 863,000 863,000 - Total other financing sources and uses - - - - 863,000 863,000 863,000 - Appropriate of fund balance - - - - - 857,394 - 857,394 Net change in fund balances (1,071,574) 375,246 Fund balances - beginning 1,216,069 1,265,401 Fund balances - ending 144,495$ 1,640,647$ Budgeted Amounts Budgeted Amounts 84 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 COMBINING STATEMENT OF NET POSITION INTERNAL SERVICE FUNDS SEPTEMBER 30, 2022 Risk Fleet Management Maintenance Fund Fund Total ASSETS Current assets: Cash and cash equivalents 921,690$ 1,449,645$ 2,371,335$ Accounts receivable, net 24,243 - 24,243 Inventories - 10,559 10,559 Prepaid Expenses 239,574 - 239,574 Total current assets 1,185,507 1,460,204 2,645,711 Non-current assets: Net pension asset - 16,647 16,647 Capital assets: Capital assets not being depreciated - 7,127 7,127 Capital assets being depreciated, net - 1,987,061 1,987,061 Total non-current assets - 2,010,835 2,010,835 Total assets 1,185,507$ 3,471,039$ 4,656,546$ DEFERRED OUTLOWS OF RESOURCES Pension - 36,239 36,239 Other post employment benefits (OPEB)- 3,648 3,648 Total deferred outflows of resources - 39,887 39,887 LIABILITIES Current Liabilities: Accounts payable and accrued liabilities 27,912 69,175 97,087 Compensated absences - 8,560 8,560 Total current liabilities 27,912 77,735 105,647 Non-current liabilities: Compensated absences - 25,680 25,680 OPEB liability - 7,935 7,935 Total non-current liabilities - 33,615 33,615 Total liabilities 27,912 111,350 139,262 DEFERRED INFLOWS OF RESOURCES Pension - 66,509 66,509 Other post employment benefits (OPEB)- 3,275 3,275 Total deferred inflows of resources - 69,784 69,784 NET POSITION Invested in capital assets, net of related debt - 2,010,835 2,010,835 Assigned - 370,000 370,000 Unassigned 1,157,595 948,957 2,106,552 Total net position 1,157,595$ 3,329,792$ 4,487,387$ 85 MIAMI SHORES VILLAGE COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION INTERNAL SERVICE FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2022 Risk Fleet Management Maintenance Fund Fund Total REVENUES Charges for services 1,000,866$ 1,366,780$ 2,367,646$ Total operating revenues 1,000,866 1,366,780 2,367,646 OPERATING EXPENSES Personal services - 247,477 247,477 Utilities - 18,616 18,616 Repairs and maintenance 40,877 222,149 263,026 Administrative expenses 4,262 628,634 632,896 Insurance claims and expenses 932,285 116,689 1,048,974 Depreciation - 334,830 334,830 Total Operating expenses 977,424 1,568,395 2,545,819 Operating income (loss)23,442 (201,615) (178,173) NON-OPERATING REVENUES (EXPENSES) Interest and investment revenue 2,179 3,001 5,180 Total non-operating revenue (expenses)2,179 3,001 5,180 Income (loss) before contributions and transfers 25,621 (198,614) (172,993) Change in net position 25,621 (198,614) (172,993) Total net position - beginning 1,131,974 3,528,406 4,660,380 Total net position - ending 1,157,595$ 3,329,792$ 4,487,387$ 86 Risk Fleet Management Maintenance Fund Fund Total Cash flows from operating activities: Cash received from customers, governments and other funds 983,243$ 1,366,780$ 2,350,023$ Cash paid to suppliers (975,038) (904,961) (1,879,999) Cash paid for employees - (247,125) (247,125) Net cash provided by (used in) operating activities 8,205 214,694 222,899 Cash flows from capital related financing activities: Acquisition and construction of capital assets - (417,795) (417,795) Net cash provided by (used in) capital and related financing activities - (417,795) (417,795) Cash flows from investing activities: Interest and other income 2,179 3,001 5,180 Net cash provided by (used in) investing activities 2,179 3,001 5,180 Net increase (decrease) in cash and cash equivalents 10,384 (200,100) (189,716) Cash and cash equivalents, October 1 984,170 1,458,037 2,442,207 Cash and cash equivalents, September 30 994,554$ 1,257,937$ 2,252,491$ Reported in statement of net position as follows: Cash and cash equivalents 921,690$ 1,449,645$ 2,371,335$ 921,690$ 1,449,645$ 2,371,335$ Reconciliation of operating income to net cash provided by operating activities: Operating income (loss)23,442$ (201,615)$ (178,173)$ Adjustments to reconcile operating income to net cash provided by operating activities: Depreciation - 334,830 334,830 Change in assets and liabilities: (Increase) decrease in: Accounts receivable (17,623) - (17,623) Inventories - 24,960 24,960 Prepaids (19,026) - (19,026) Deferred outflows of resources for pension - (1,677) (1,677) Increase (decrease) in: Accounts payable and accrued liabilities 21,412 56,789 78,201 Compensated absences - 1,867 1,867 OPEB liability - 1,861 1,861 Net pension liability (asset)- (65,000) (65,000) Deferred inflows of resources for pension - 62,679 62,679 Total adjustments (15,237) 416,309 401,072 Net cash provided by (used in) operating activities 8,205$ 214,694$ 222,899$ MIAMI SHORES VILLAGE COMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2022 87 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, 2022 General Employee's Police Pension Pension Trust Trust Total ASSETS Cash and cash equivalents $ 221,160 $ 609,274 $ 830,434 Receivables: Accounts receivables - 109,624 109,624 Interest and dividends 65,389 119,535 184,924 Total receivables 65,389 229,159 294,548 Investments: Mutual funds – equity 5,589,335 10,525,622 16,114,957 Common stock 3,495,183 6,063,644 9,558,827 Corporate bonds 2,683,328 4,980,277 7,663,605 U.S. government securities 1,563,327 2,084,955 3,648,282 Mortgage backed securities 1,456,365 3,082,343 4,538,708 Foreign stock 403,022 699,315 1,102,337 Foreign bonds 35,490 60,839 96,329 Municipal bonds 39,105 78,210 117,315 Total Investments 15,265,155 27,575,205 42,840,360 Total assets $ 15,551,704 $ 28,413,638 $ 43,965,342 NET POSITION Net position for pension benefits $ 15,551,704 $ 28,413,638 $ 43,965,342 88 MIAMI SHORES VILLAGE COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION PENSION TRUST FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2022 General Employee's Police Pension Pension Trust Trust Total ADDITIONS Contributions: Employer 454,695$ 1,150,000$ 1,604,695$ Plan members 206,640 260,052 466,692 State of Florida - 109,624 109,624 Total contributions 661,335 1,519,676 2,181,011 Investment earnings: Net appreciation in fair value of investments (4,677,854) (8,002,226) (12,680,080) Interest and dividiend income 1,112,825 1,887,968 3,000,793 Investment activity expense (90,085) (118,907) (208,992) Total net investment earnings (3,655,114) (6,233,165) (9,888,279) Other Additions: Miscellaneous 32 46 78 Total other additions 32 46 78 Total additions (2,993,747) (4,713,443) (7,707,190) DEDUCTIONS Pension benefits 1,203,300 1,925,019 3,128,319 Administrative expenses 62,357 116,583 178,940 Total deductions 1,265,657 2,041,602 3,307,259 Net decrease (4,259,404) (6,755,045) (11,014,449) Beginning of year 19,811,108 35,168,683 54,979,791 End of year 15,551,704$ 28,413,638$ 43,965,342$ 89 STATISTICAL SECTION 2022202120202019201820172016201520142013Governmental activities: Invested in capital assets, net of related debt 20,969,584$ 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$ Restricted 7,093,713 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 Unrestricted 8,241,250 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 Total governmental activities net assets36,304,547 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 Business-type activities: Invested in capital assets, net of related debt 2,366,954 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 Restricted 214,634 269,100 - - 3,772,478 3,772,478 Unrestricted 2,297,325 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 Total business-type activities net assets4,878,913 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 Primary government: Invested in capital assets, net of related debt 23,336,538 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 Restricted 7,308,347 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 Unrestricted 10,538,575 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 Total primary government net assets41,183,460$ 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$ Fiscal YearMIAMI SHORES VILLAGE, FLORIDANET ASSETS BY COMPONENTFOR THE LAST TEN FISCAL YEARS(accrual basis of accounting)90 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 Governmental activities: General Government 3,172,085$ 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$ Public Safety 6,782,274 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 Public Works 4,473,996 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 Culture and Recreation 3,616,598 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 Interest on debt 82,588 115,349 124,515 133,191 126,553 151,794 168,811 272,374 283,840 432,997 Total governmental activities expenses 18,127,541 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 Business-type activities: Solid Waste 2,820,292 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 Stormwater 226,609 206,141 282,149 279,259 201,904 224,695 237,712 193,174 165,537 180,702 Water & Wastewater 196,925 103,416 63,301 4,383,725 148,717 105,707 62,204 - - - Total business-type activities expenses 3,243,826 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 Total primary government expenses 21,371,367 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 Program revenues: Governmental activities: Charges for services: General Government 2,495,126 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 Public Safety 2,418,250 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 Public Works 33,880 40,266 34,629 46,912 24,175 62,144 194,349 200,977 117,815 843,218 Culture and Recreation 1,355,295 978,267 650,093 1,442,519 1,577,949 1,356,565 1,388,906 1,568,844 1,436,999 1,375,506 Operating grants and contributions 799,272 739,700 717,036 815,658 816,300 801,908 798,312 816,380 784,430 87,368 Capital grants and contributions - - - - - - - 35,564 474,079 35,564 Total governmental activities program revenues 7,101,823 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 Business-type activities: Charges for services: Solid Waste 3,420,822 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 Stormwater 592,626 571,984 479,125 245,805 245,407 244,936 245,269 244,805 244,107 248,132 Water & Wastewater 61,592 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 4,075,040 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 Total primary government program revenue 11,176,863$ 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$ MIAMI SHORES VILLAGE, FLORIDA CHANGES IN NET ASSETS FOR THE LAST TEN FISCAL YEARS (Continued) Fiscal Year 91 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 Net (expenses) revenue: Governmental activities (11,025,718)$ (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)$ Business-type activities 831,214 663,209 255,207 (4,364,117) 140,078 140,078 699,307 186,555 1,139,423 425,455 (10,194,504) (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) General revenues and other changes in net assets: Governmental activities: Property taxes 10,623,678 10,623,678 9,672,526 9,009,745 8,484,744 7,923,699 7,326,125 6,893,572 6,406,843 6,255,087 Public services tax 2,475,934 2,440,530 2,107,335 2,156,184 2,121,676 2,104,726 2,141,094 2,199,772 2,214,451 2,045,767 Intergovernmental 1,632,997 1,632,996 1,517,940 1,209,452 1,145,885 1,109,035 1,092,365 1,027,237 1,002,183 929,762 Miscellaneous 597,605 597,605 675,139 635,023 662,875 549,075 507,592 827,991 469,614 415,330 Investment income - unrestricted 73,387 27,133 128,434 277,431 115,869 60,740 26,210 29,568 20,670 32,015 Special item - gain (loss) on sale of asset - (145,753) - - - - - 523,164 - - Transfers 335,957 336,425 414,052 416,737 350,076 352,819 400,000 400,000 395,000 395,000 Total governmental activities 15,739,558 15,512,614 14,515,426 13,704,572 12,881,125 12,100,094 11,493,386 11,901,304 10,508,761 10,072,961 Business-type activities: Investment income 3,545 2,083 12,167 27,803 17,370 10,623 4,701 5,721 5,708 5,994 Other general revenues 1,634 757 - - - - - - - - Transfers (335,957) (336,425) (414,052) (416,737) (350,076) (352,819) (400,000) (400,000) (395,000) (395,000) Total business-type activities (330,778) (333,585) (401,885) (388,934) (332,706) (342,196) (395,299) (394,279) (389,292) (389,006) Total primary government 15,408,780 15,179,029 14,113,541 13,315,638 12,548,419 11,757,898 11,098,087 11,507,025 10,119,469 9,683,955 Change in net assets: Governmental activities 4,713,840 2,839,059 2,539,400 1,438,343 (510,289) (1,291,320) 377,717 785,635 (825,288) 291,725 Business-type activities 500,436 329,624 (146,678) (4,753,051) (192,628) (202,118) (208,744) (207,724) 750,131 36,449 Total primary government 5,214,276$ 3,168,683$ 2,392,722$ (3,314,708)$ (702,917)$ (1,493,438)$ 168,973$ 577,911$ (75,157)$ 328,174$ MIAMI SHORES VILLAGE, FLORIDA CHANGES IN NET ASSETS (Continued) FOR THE LAST TEN FISCAL YEARS Fiscal Year 92 2022202120202019201820172016201520142013General fund: Reserved -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Unreserved - - - - - - - - - - Nonspendable * 2,552 19,092 6,779 12,656 17,851 4,506 7,786 3,741 11,698 32,305 Restricted * - - - - - - - - - Committed * - - - - - - 31,562 31,562 45,947 Assigned * 863,000 863,000 - - - - - - - - Unassigned * 11,151,556 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 Total general fund 12,017,108$ 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$ All other governmental funds: Reserved -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Unreserved reported in: Special revenue funds - - - - - - - - - - Capital project funds - - - - - - - - - - Nonspendable * - - 2,000 2,000 - 5,174 - Restricted * 3,373,533 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 Committed * 1,640,647 1,265,401 1,442,733 1,646,587 830,632 768,966 581,630 578,434 649,494 611,766 Assigned * 68,451 68,451 - - - - - - - - Unassigned * (1,198,175) (1,198,175) (3,357,706) (3,373,275) (3,323,252) (1,079,522) - - - - Total all other governmental funds 3,884,456$ 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$ Fiscal YearMIAMI SHORES VILLAGE, FLORIDAFUND BALANCES FOR GOVERNMENTAL FUNDSFOR THE LAST TEN FISCAL YEARS93 2022202120202019201820172016201520142013Revenues:Taxes 10,623,678$ 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$ Public services taxes 2,475,934 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 Licenses and permits 1,532,895 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 Intergovernmental 3,277,373 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 Grants, contributions and donations 29,419 25,658 - - - - - - - - Charges for services 2,115,710 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 Fees and fines 362,366 325,274 1,000,705 441,823 489,247 696,709 517,648 613,743 629,524 858,753 Miscellaneous 319,443 366,701 675,139 664,688 662,875 549,075 507,592 827,991 555,417 415,330 Investment earnings 68,207 24,165 108,026 231,498 103,199 55,420 24,149 27,058 18,166 32,015 Total revenues 20,805,025 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 Expenditures:General Government 2,849,172 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 Public Safety 8,432,442 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 Public Works 2,277,797 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 Culture and Recreation 3,219,961 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 Capital outlay 1,799,669 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 Debt services: Principal 1,449,300 331,400 327,400 317,100 533,959 674,079 657,889 635,837 589,036 4,362,580 Interest and other charges 82,588 115,349 124,515 133,191 141,846 151,794 168,811 272,374 283,840 432,997 Total expenditures 20,110,929 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 (Deficiency) excesss of revenues overexpenditures 694,096 2,637,303 (29,432) (255,156) (2,213,852) (1,372,707) (1,423,177) (309,302) (664,636) (4,418,124) 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 1,563,000 759,971 2,073,591 5,222,774 2,981,015 4,487,608 4,474,312 3,269,070 3,264,673 3,028,480 Transfer out (1,227,043) (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) Total other financing sources (uses) 335,957 421,750 457,626 307,080 350,076 311,284 462,000 1,082,764 395,000 4,263,300 Net change in fund balances 1,030,053$ 3,059,053$ 428,194$ 51,924$ (1,863,776)$ (1,061,423)$ (961,177)$ 773,462$ (269,636)$ (154,824)$ Debt service as a percentage of noncapital expenditures 8.4% 2.7% 2.9% 2.8% 3.8% 5.0% 5.6% 6.3% 6.2% 27.4%Fiscal YearMIAMI SHORES VILLAGE, FLORIDACHANGES IN FUND BALANCES FOR GOVERNMENTAL FUNDSFOR THE LAST TEN FISCAL YEARS94 Ad-Valorem Taxes Public Licenses Charges Fees and Investment Fiscal Year General Purpose Service Taxes and Permits Intergovernmental for Services Fines Miscellaneous EarningsTotal20135,719,016 2,045,767841,572964,755 1,941,090 609,029276,81118,746 12,416,786 20145,894,716 2,214,4511,018,301 1,002,183 1,980,381 492,285382,1495,213 12,989,679 20156,383,317 2,199,7721,237,435 1,062,801 2,059,389 499,777449,44514,281 13,906,217 20166,864,998 2,141,0941,257,228 1,092,365 1,732,617 352,026357,49414,492 13,812,314 20177,446,686 2,104,7261,212,029 1,102,765 1,829,756 554,068371,30942,023 14,663,362 20188,027,601 2,121,6761,211,448 1,131,324 2,034,859 435,792461,77974,081 15,498,560 20198,555,473 2,156,1841,291,634 1,139,976 1,898,020 251,004532,950 162,557 15,987,798 20209,201,078 2,107,335913,015 1,002,859 1,278,240 957,749538,33071,392 16,069,998 20219,558,415 2,232,8861,240,591 1,209,673 1,619,550 271,110342,19116,035 16,490,451 202210,158,979 2,475,934253,252 1,481,181 2,115,710 299,205319,44353,074 17,156,778 Revenues included in the General and Excise Tax FundsThe Excise Tax Fund was closed in FY2019A Building Fund was established in FY2022GENERAL GOVERNMENTAL REVENUES BY SOURCELAST TEN FISCAL YEARS(accrual basis of accounting)MIAMI SHORES VILLAGE, FLORIDA95 FiscalYear Total Total TotalEnded Personal Centrally Assessed Direct Tax MarketSeptember 30,PropertyPropertyAssessedValueRateValue2013727,955,201 17,910,658 1,530,814 747,396,673 8.7500 1,284,277,736 58.20%2014744,161,594 18,898,889 1,071,836 764,132,319 8.6949 1,294,780,508 59.02%2015808,067,935 20,443,472 1,281,491 829,792,898 8.6392 1,483,377,513 55.94%2016880,336,926 19,782,931 1,509,219 901,629,076 8.4289 1,692,889,026 53.26%2017953,506,766 19,610,810 1,678,470 974,796,046 8.4054 1,879,247,396 51.87%20181,030,605,970 19,731,712 1,785,659 1,052,123,341 8.3491 2,009,104,786 52.37%20191,095,746,087 20,399,258 1,887,615 1,118,032,960 8.3192 2,019,624,945 55.36%20201,173,922,297 20,064,707 2,400,225 1,196,387,229 8.3009 2,084,500,585 57.39%20211,233,170,132 21,921,504 2,215,825 1,257,307,461 8.2773 2,123,768,447 59.20%20221,290,977,319 24,223,997 2,252,482 1,317,453,798 8.2638 2,211,554,865 59.57%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. as a percentage of Market ValueMIAMI SHORES VILLAGE, FLORIDAASSESSED VALUE AND ACTUAL VALUE OF TAXABLE PROPERTYFOR THE LAST TEN FISCAL YEARSAssessed Value96 FiscalTotalYear TotalDirect &Ended City Debt Direct County- Debt OverlappingSeptember 30,WideServiceRateWideServiceFireLibrarySchoolStateRates20138.0000 0.7500 8.7500 4.7035 0.2850 2.4627 - 7.9980 0.9634 25.1626 20148.0000 0.6949 8.6949 4.7035 0.4220 2.4623 - 7.9770 0.9455 25.2052 20158.0000 0.6392 8.6392 4.6669 0.4500 2.4321 - 7.9740 0.9187 25.0809 20167.9000 0.5289 8.4289 4.6583 0.4586 2.4293 - 7.6120 0.8871 24.4742 20177.9000 0.5054 8.4054 4.6669 0.4000 2.4282 - 7.3220 0.8627 24.0852 20187.9000 0.4491 8.3491 4.6669 0.4000 2.4282 - 6.9940 0.8093 23.6475 20197.9000 0.4192 8.3192 4.6669 0.4644 2.4207 - 6.7330 0.7671 23.3713 20207.9000 0.4009 8.3009 4.6669 0.4780 2.4207 - 7.1480 0.7795 23.7940 20217.9000 0.3773 8.2773 4.6669 0.4780 2.4207 - 7.1290 0.7502 23.7221 20227.9000 0.3638 8.2638 4.6669 0.5075 2.4207 - 7.0090 0.7892 23.6571 (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 $1,000 of Taxable Assessed ValuationTax rate limits: City 10.000 Mils County 10.000 Mils School 10.000 Mils State 10.000 MilsSource: Miami Dade County Finance Department, Tax Collector's DivisionMiami Shores VillageCountySpecial DistrictsMIAMI SHORES VILLAGE, FLORIDAPROPERTY TAX RATESDIRECT AND OVERLAPPING GOVERNMENTS (1)FOR THE LAST TEN FISCAL YEARS97 Percentage Percentage Taxable of Total City Taxable of Total City Assessed Taxable Assessed Taxable Taxpayer Value Rank Value Value Rank Value Tropical Chevrolet, Inc.13,128,679$ 1 1.00%6,835,155$ 2 0.91% Florida Power & Light Company 12,399,824 2 0.94%6,803,399 3 0.91% Shore Square Properties, LLC 9,332,202 3 0.71%11,271,148 1 1.51% Northern Trust Bank ETAL TRS (Publix) 8,880,000 4 0.67% Cooper Florida Estates LLC 4,302,226 5 0.33% 88 Biscayne Management LLC 4,069,312 6 0.31% DVS LLC 3,920,298 7 0.30%2,820,821 4 0.38% SMSB LLC 3,830,000 8 0.29% Luma Shores LLC 3,769,248 9 0.29% AHE Realty Assoc LLC 3,741,125 10 0.28% Frances B Everett 2,400,000 6 0.32% Wal Miami LLC 2,456,175 5 0.33% Bank of America, N.A.2,119,319 7 0.28% Omar Cassola 1,926,818 8 0.26% Norton L Barchan 1,900,395 9 0.25% Robert Ader & W - 1,822,823 10 0.24% Total 67,372,914$ 5.11%40,356,053$ 5.39% MIAMI SHORES VILLAGE, FLORIDA PRINCIPAL PROPERTY TAX PAYERS CURRENT YEAR AND TEN YEARS AGO 2022 2013 98 Fiscal Year Total Levied Collections Ended for the Percentage in Subsequent Percentage September 30,Fiscal Year Amount of Levy Years Amount of Levy 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% 2022 10,407,885 10,027,208 96.3%131,771 10,158,979 97.6% 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 99 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 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% 2022 2,554,600 - 3,640,000 6,194,600 0.47%1.06% Governmental MIAMI SHORES VILLAGE, FLORIDA RATIOS OF OUTSTANDING DEBT BY TYPE FOR THE LAST TEN FISCAL YEARS 100 Percentage AmountDebt Applicable ApplicableGovernmental UnitOutstandingTo CityTo City701,809,370 Overlapping debt: Miami-Dade County, Florida (1) 2,754,741$ 0.41% 11,288$ Miami-Dade County Public Schools (2) 836,862 0.36%3,011 Total overlapping debt3,591,603$ 14,300 Miami Shores Village2,555 100.00%2,555 Total direct and overlapping debt3,594,158$ 16,854$ 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, FLORIDADIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBTAS OF SEPTEMBER 30, 2022(in thousands)101 2022202120202019201820172016201520142013Debt limit129,190,780$ 127,741,480$ 115,303,423$ 107,140,596$ 100,232,534$ 92,188,005$ 84,566,008$ 77,083,990$ 70,360,232$ 68,441,667$ Total net debt applicable to limit2,554,600 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 Legal debt margin 126,636,180$ 123,737,580$ 110,968,123$ 102,477,896$ 95,252,734$ 86,896,405$ 78,969,108$ 71,188,690$ 64,307,232$ 62,143,667$ Total net debt applicable to thelimit as a percentage of debt limit 1.98% 3.13% 3.76% 4.35% 4.97% 5.74% 6.62% 7.65% 8.60% 9.20%Fiscal YearMIAMI SHORES VILLAGE, FLORIDALEGAL DEBT MARGIN INFORMATIONFOR THE LAST TEN FISCAL YEARS102 Personal Per Income Capita Estimated (Thousand of Personal Unemployment Year Population (1)Dollars) Income (2)Rate (3) 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% 2022 10,817 586,162 54,189 2.6% 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 103 Percentage Percentage of Total County of Total County Employer Employees Rank Employment Employees Rank Employment Miami-Dade County Public Schools 39,959 1 2.91%48,571 1 3.80% Miami-Dade County, Florida 25,502 2 1.86%29,000 2 2.27% University of Miami 19,996 3 1.46%16,000 5 1.25% Publix Super Markets 12,524 4 0.91%10,800 8 0.84% Jackson Health System 12,173 5 0.89%12,571 7 0.98% American Airlines 11,102 6 0.81%9,000 9 0.70% Miami-Dade College 7,111 7 0.52% Florida International University 6,608 8 0.48%8,000 10 0.63% United States Postal Service 5,134 9 0.37% Baptist Health South Florida 5,133 10 0.37%13,376 6 1.05% Federal Government 19,500 3 1.52% Florida State Government 17,100 4 1.34% Total Civilian Labor Force Employment 1,371,121 1,279,047 Source: The Beacon Council, Miami Florida Florida Department of Economic Opportunity, Burea of Workforce Statistics and Economic Research U.S. Census Bureau 2022 2013 MIAMI SHORES VILLAGE, FLORIDA PRINCIPAL EMPLOYERS LOCATED IN MIAMI-DADE COUNTY CURRENT YEAR AND TEN YEARS AGO 104 Function/Program 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 General Government: Administration: Full time 6 5 5 12 11 12 10 10 8 10 Part time 0.5 0.5 0 7 6 7 6 6 5 5 Finance: Full time 33345 6 6 5 5 5 Part time - - - - - - - - - Public Works: Full time 44 42 42 42 43 44 43 39 43 41 Part time 1.5 1.5 1 1 1 1 1 1 - 1 Culture and Recreation: Parks & Recreation: Full time 15 13 15 14 13 13 15 13 12 12 Part time 46 35 28 58 63 63 67 63 72 51 Library: Full time 44444 4 4 4 2 3 Part time 54567 6 6 6 8 7 Public Safety Building* Full time 5 5 4 Part time 9 9 7 Neighborhood Services Full time 3 3 3 Part time - - - Police Full time 48 44 47 48 48 46 42 40 43 43 Part time 3 1 3 3 3 3 4 4 4 3 Total 193 170 167 199 204 205 204 191 202 181 * 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 105 Function/Program2022*2021*20202019201820172016201520142013General Government:Finance:Number of lien searches processed 437 562 - - - - - - - - Public Safety:Building:Number of building permits issued 2,671 2,788 - - - - - - - - Code Compliance:Business Licenses issued 442 412 - - - - - - - - Police:Number of arrests 194 137 - - - - - - - - Number of calls for service 17,668 14,000 - - - - - - - - Number of sworn law enforcement personnel 41 38 - - - - - - - - Public Works:Garbage collected (tons) 6,656 4,158 Recycling collected (tons) 739 795 - - - - - - - - Sidewalks repaired (linear feet) 3,000 1,275 - - - - - - - - Trash collected (tons) 8,903 10,200 - - - - - - - - Culture and Recreation:Number of program participants70,421 73,649 - - - - - - - - Sources:Various Village Departments*Only data available at this timeFiscal YearMIAMI SHORES VILLAGE, FLORIDAOPERATING INDICATORS BY FUNCTIONFOR THE LAST TEN FISCAL YEARS106 Function/Program2022**2021**20202019201820172016201520142013General Government:Village Hall 1 1 - - - - - - - - Public Safety:Police:Police stations1 1 - - - - - - - - Police vehicles54 61 - - - - - - - - Public Works:Number of recycling/refuse collection trucks14 14 - - - - - - - - Culture and Recreation:Aquatic Playground1 1 - - - - - - - - Art in Public Places6 6 - - - - - - - - Basketball Courts2 2 - - - - - - - - Dog Park1 1 - - - - - - - - Golf Courses1 1 - - - - - - - - Libraries1 1 - - - - - - - - Parks*6 6 - - - - - - - - Parks & Recreation Center(s)6 6 - - - - - - - - Pickleball Court(s)4 4 - - - - - - - - Racketball Court(s)1 1 - - - - - - - - Swimming Pool(s)1 1 - - - - - - - - Tennis Court(s)4 4 - - - - - - - - Sources:Various Village Departments* Dog Park also included in Parks total**Only data available at this timeFiscal YearMIAMI SHORES VILLAGE, FLORIDACAPITAL ASSET STATISTICS BY FUNCTION/PROGRAMFOR THE LAST TEN FISCAL YEARS107 COMPLIANCE SECTION 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 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, 2022, and the related notes to the financial statements, which collectively comprise the Village’s basic financial statements, and have issued our report thereon dated October 31, 2023. Report on 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 Village’s financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or, significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified. Report on 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 one instance of noncompliance that is required to be reported under Government Auditing Standards and which is described in the accompanying schedule of findings and responses as item 2022-01. Village’s Response to Findings Government Auditing Standards requires the auditor to perform limited procedures on the Village’s response to the findings identified in our audit and described in the accompanying schedule of findings and responses. The Village’s response was not subject to the other auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on the response. 109    8950 SW 74th Court I Suite 1210 I Miami, FL 33156  T: 305.662.7272 I F: 305.662.4266 I CFLGCPA.COM   Purpose of This Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Village’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Village’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Caballero Fierman Llerena & Garcia, LLP Caballero Fierman Llerena & Garcia, LLP Miami, Florida October 31, 2023 MIAMI SHORES VILLAGE, FLORIDA SCHEDULE OF FINDINGS AND RESPONSES FISCAL YEAR ENDED SEPTEMBER 30, 2022 110  8950 SW 74th Court I Suite 1210 I Miami, FL 33156  T: 305.662.7272 I F: 305.662.4266 I CFLGCPA.COM CURRENT YEAR FINANCIAL STATEMENT FINDINGS AND RECOMMENDATIONS NONCOMPLIANCE 2022-01 Annual Financial Audit Report Criteria Florida Statutes section 218.39 states that local government entity shall have an annual financial audit of its accounts and records completed within 9 months after the end of its fiscal year by an independent certified public accountant retained by it and paid from its public funds. Condition The Village did not complete its annual financial audit for the fiscal year ended 2022 within 9 months after year end. Cause There was a delay in the financial close and reporting procedures of the Village due to turnover. Effect The Village is not in compliance with Florida Statute section 218.39. Recommendation We recommend that, in the future, the Village completes its annual financial audits within 9 months after its fiscal year end. View of responsible officials and planned corrective actions The Village has consistently completed the financial audit within the nine-month timeframe evidenced by being awarded the Triple Crown award from the GFOA. This financial statement was an anomaly due to unprecedented staff turnover during 2023 when the audit should have been completed. Both the Village Council and the State were kept apprised of the difficult situation in which the Village found itself. The Village has taken all steps necessary to still submit to the GFOA within the additional time allowed. It is anticipated that this will not occur again in the near future.   111    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 the Miami Shores Village, Florida (the “Village”), as of and for the fiscal year ended September 30, 2022, and have issued our report thereon dated October 31, 2023. Auditors’ Responsibility We conducted our audit in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and Chapter 10.550, Rules of the 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; Schedule of Findings and Responses; and Independent Accountant’s Report on compliance pursuant to Section 218.415 Florida Statutes, regarding compliance requirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in those reports and schedule, which are dated October 31, 2023, 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 financial audit report. There were no findings or recommendations made in the preceding annual financial audit report. Official Title and Legal Authority Section 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official title and legal authority for the primary government and each component unit of the reporting entity be disclosed in this management letter, unless disclosed in the notes to the financial statements. This information has been disclosed in the notes to the financial statements. Financial Condition and Management Sections 10.554(1)(i)5.a. and 10.556(7), Rules of the Auditor General, require us to apply appropriate procedures and communicate the results of our determination as to whether or not the Village met one or more of the conditions described in Section 218.503(1), Florida Statutes, and to identify 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. 112    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 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 have one recommendation identified in Appendix A. 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 have one finding of non-compliance identified in the schedule of findings and responses. 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 applicable management, 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 October 31, 2023 113    8950 SW 74th Court I Suite 1210 I Miami, FL 33156  T: 305.662.7272 I F: 305.662.4266 I CFLGCPA.COM   Appendix A 2022-02 Information Technology Policy Observation: It is best practice for the Village to have a formal written Information Technology (IT) policy that documents and encompasses various areas such as: General IT procedural manual, disaster recovery plan, IT Risk Assessment, data back-up schedules, cybersecurity incident response plan, etc. The Village’s computerized information systems are vital to its daily operations. During the performance of our planning phase of the audit for the fiscal year ended September 30, 2022, we identified the Village does not have a formal written IT policy. Without proper documentation, management is not assured that its desired policies and procedures are being carried out. In addition, documentation is an effective tool for training new personnel, providing operations instructions, and assisting in system revisions and development of IT needs. Recommendation: We recommend the Village to produce a formal written IT policy and to continuously update the policy on an annual basis as considered necessary. Management Response: The Village is in the process of adopting a formal IT policy. 114  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, 2021 to September 30, 2022. 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, 2021 to September 30, 2022. 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 October 31, 2023