HomeMy Public PortalAboutComprehensive Annual Financial Report Fiscal Year ended September 30, 2009.tifCLERK'S COPY
04/27/10
VILLAGE OF KEY BISCAYNE
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FISCAL YEAR ENDED SEPTEMBER 30, 2009
Prepared by:
THE FINANCE DEPARTMENT
VILLAGE OF KEY BISCAYNE, FLORIDA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FISCAL YEAR ENDED SEPTEMBER 30, 2009
Prepared by:
THE FINANCE DEPARTMENT
VILLAGE OF KEY BISCAYNE, FLORIDA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FISCAL YEAR ENDED SEPTEMBER 30, 2009
TABLE OF CONTENTS
Introductory Section
Letter of Transmittal i
Village Officials v
Certificate of Achievement for Excellence in Financial Reporting vi
Organization Chart vii
Financial Section
Independent Auditors' Report 1-2
Management's Discussion and Analysis (Required Supplementary Information) 3-10
Basic Financial Statements
Government -Wide Financial Statements:
Statement of Net Assets 11
Statement of Activities 12
Fund Financial Statements:
Governmental Fund Financial Statements:
Balance Sheet r 13
Statement of Revenues, Expenditures and Changes in Fund Balances 14
Reconciliation of the Statement of Revenues, Expenditures and Changes in
Fund Balances of Governmental Funds to the Statement of Activities 15
Proprietary Fund Financial Statements:
Statement of Net Assets 16
Statement of Revenues, Expenses and Changes in Net Assets 17
Statement of Cash Flows 18
Fiduciary Fund Financial Statements:
Statement of Fiduciary Net Assets 19
Statement of Changes in Fiduciary Net Assets 20
Notes to Basic Financial Statements 21-45
Required Supplementary Information (Other Than MD&A)
Budgetary Comparison Schedule — General Fund 46
Note to Budgetary Comparison Schedule 47
Schedule of Funding Progress 48
Schedule of Employer Contributions 49
VILLAGE OF KEY BISCAYNE, FLORIDA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FISCAL YEAR ENDED SEPTEMBER 30, 2009
TABLE OF CONTENTS
Statistical Section
Net Assets by Component 50
Changes in Net Assets 51-52
Fund Balances of Governmental Funds 53
Changes in Fund Balances of Governmental Funds 54
General Governmental Tax Revenues by Source 55
Net Assessed Value and Estimated Actual Value of Taxable Property 56
Property Tax Rates — Direct and Overlapping Governments 57
Principal Property Taxpayers 58
Property Tax Levies and Collections 59
Ratios of Outstanding Debt by Type 60
Ratios of General Bonded Debt Outstanding 61
Direct and Overlapping Governmental Activities Debt 62
Pledged Revenue Coverage 63
Demographic and Economic Statistics 64
Principal Employers 65
Full -Time Equivalent Village Government Employees by Function 66
Operating Indicators by Function/Program r 67
Capital Asset Statistics by Function/Program 68
Compliance Section
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 69-70
Management Letter in Accordance with the Rules of the Auditor General of the
State of Florida 71-73
Independent Auditors' Report on Compliance With Requirements Applicable to
Each Major Program and on Internal Control over Compliance in Accordance
With OMB Circular A-133 74-75
Schedule of Expenditures of Federal Awards 76
Note to Schedule of Expenditures of Federal Awards 77
Summary Schedule of Prior Audit Findings 78
Schedule of Findings and Questioned Costs 79-80
INTRODUCTORY SECTION
Village Council
Robert L. Vernon, Mayor
Enrique Garcia, Vice Mayor
Michael W. Davey
Robert Gusman
Michael E. Kelly
Jorge E. Mendia
Thomas Thornton
Village Manager
Genaro "Chip" Iglesias
VILLAGE OF KEY BISCAYNE
Office of the Village Manager
April 27, 2010
To the Honorable Mayor, Members of the Village
Council and Citizens of the Village of Key Biscayne:
The Government Finance Officers Association (GFOA) recommends that all
units of local government publish, within six months of the close of each
fiscal year, a complete set of financial statements presented in conformity with
generally accepted accounting principles (GAAP) in the United States and
audited in accordance with auditing standards generally accepted in the United
States and in accordance with Government Auditing Standards by a firm of
licensed certified public accountants. Pursuant to that recommendation, we
hereby issue the comprehensive annual financial report of the Village of Key
Biscayne for the fiscal year ended September 30, 2009.
This report consists of management's representation concerning the finances
of the Village of Key Biscayne. Consequently, management assumes full
responsibility for the completeness and reliability of all of the information
presented in this report. To provide a reasonable basis for making these
representations, management of the Village of Key Biscayne has established a
comprehensive internal framework that is designed both to protect the
Village's assets from loss, theft, or misuse and to compile sufficient reliable
information for the preparation of the Village of Key Biscayne's financial
statements in conformity with GAAP. Because the cost of internal controls
should not outweigh their benefits, the Village of Key Biscayne's
comprehensive framework of internal controls has 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 firm of MarcumRachlin, a division of Marcum LLP, licensed certified
public accountants has audited the Village of Key Biscayne's financial
statements. The goal of the independent audit was to provide reasonable
assurance that the basic financial statements of the Village of Key Biscayne
for the fiscal year ended September 30, 2009 are free of material
misstatement. The independent audit involved examining, on a test basis,
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88 West McIntyre Street • Suite 210 • Key Biscayne, Florida 33149 • (305) 365-5500 • Fax (305) 365-8936
MISSION STATEMENT. "TO PROVIDE A SAFE, QUALITY COMMUNITY ENVIRONMENT FOR ALL ISLANDERS THROUGH RESPONSIBLE GOVERNMENT."
www.keybiscayne.fl.gov
evidence supporting the amount and disclosures in the financial statements; assessing the
accounting principles used and significant estimates made by management; and evaluating the
overall financial statement presentation. The independent auditor concluded, based upon the
audit, that there was a reasonable basis for rendering an unqualified opinion that the Village of
Key Biscayne's financial statements for the fiscal year ended September 30, 2009, are fairly
presented in conformity with GAAP. The independent auditor's report is presented as the first
component of the financial section of this report.
GAAP requires that management provide a narrative introduction, overview, and analysis to
accompany the basic financial statements in the form of Management's Discussion and Analysis
(MD&A). This letter of transmittal is designed to complement MD&A and should be read in
conjunction with it. The Village of Key Biscayne's MD&A can be found immediately following
the report of the independent certified public accountants.
Profile of the Government
The Village of Key Biscayne, incorporated in 1991, is located on the southern most barrier island
of the United States, Miami -Dade County, Florida approximately 7.5 miles off the coast of
Miami, Florida. The Village of Key Biscayne occupies a land area of 1.25 square miles situated
between Crandon Park and Bill Baggs State Recreation Area. The Village serves a population of
approximately 11,411. The Village of Key Biscayne receives tax levies on real and personal
property located inside its boundaries.
The Village of Key Biscayne has operated under the council-manager form of government since
incorporation. Policymaking and legislative authority are vested in a governing council
consisting of the mayor and six other council members. The Council is responsible among other
things, for passing ordinances and resolutions, adopting the annual budget, appointing the
Village Manager and Village Clerk. The Village Manager is responsible for carrying out the
policies and ordinances of the Council, for overseeing the daily operations of the government,
and for appointing the heads of various departments.
The Village of Key Biscayne offers a wide range of services, including, police protection, fire
and emergency medical service, public works maintenance, a full service building, planning and
zoning department, parks and recreation activities, solid waste collection, and a comprehensive
storm water management system. Certain services are provided through the County School
System and the County Library System through Miami -Dade County.
The annual budget serves as a foundation for the Village of Key Biscayne's financial planning
and control. All departments of the Village are required to submit requests for appropriations to
the Village Manager and these requests are the initiation of developing the proposed budget. The
Village Manager then presents this proposed budget to the Council for review. The Council is
required to hold public hearings on the proposed budget and to adopt a final budget no later than
September 30, the close of the Village's fiscal year. The appropriated budget is prepared by fund
and department. No department may legally expend in excess of the amount appropriated for
that department within an individual fund. The Village Manager may make transfers of
appropriations within a department. Transfers of appropriations between departments or funds
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require the approval of the Village Council. The Village Council approves supplemental
appropriations. Budget to actual comparisons are provided in this report for the general fund for
which an appropriated annual budget has been adopted. The general fund, budget to actual
report, is presented in the required supplemental information section of this report.
Local Economy
The Village of Key Biscayne enjoys a favorable economic environment and local indicators to
continued future stability. This exclusive community is comprised of well-educated and involved
citizens who take a genuine interest in the social, business, cultural and governing aspects of
their Village. The Village is comprised of affluent exclusive residential housing stock and three
major shopping centers. There is no industrial area in the community.
Property values were once again lower during the past year following nationwide trends.
Continuing weakness in the national and state economy will constrain the growth of property tax
revenues and will likely have an unfavorable impact on many of the Village's intergovernmental
revenues such as sales tax and state revenue sharing.
Long -Term Financial Planning
The Village utilizes a comprehensive living projection five years into the future to assess revenue
trends and expenditure needs to assure a balanced stable financial program avoiding millage rate
increases while addressing the various goals and objectives of the community. Additionally, the
Village has been modifying its 5 -Year Capital Plan by prioritizing needs based on its expected
available resources determined by its 5 -Year financial forecast. This effort is also identifying
capital purchases that will be needed to continue its critical core public safety services, as well as
other departmental needs.
Pension Benefits
The Village of Key Biscayne sponsors a defined contribution 401(a) pension plan with the
International City Managers' Association, Retirement Corporation (ICMA). Each full time
employee can contribute up to six percent (6%) of his or her pay to the plan; the Village
contributes twelve percent (12%). In addition, the Village sponsors a 457 deferred compensation
plan in which the employees may contribute on a voluntary basis.
A defined benefit pension plan is available to all firefighters and sworn police officers. This plan
is under the direction of a separate board of trustees, two of which are police and fire department
employees. Complete details of this plan can be found in Note 13 of the basic financial
statements.
Awards and Acknowledgements
The Government Finance Officers Association (GFOA) awarded a Certificate of Achievement
for Excellence in Financial Reporting to the Village of Key Biscayne for its Comprehensive
Annual Financial Report (CAFR) for the fiscal year ended September 30, 2008. This was the
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seventeenth consecutive year that the Village received this prestigious award. In order to be
awarded a Certificate of Achievement, the government published an easily readable and
efficiently organized CAFR. This report satisfied both GAAP and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe that our current
CAFR continues to meet the Certificate of Achievement Program's requirements and are
submitting it to the GFOA to determine its eligibility for another certificate.
The preparation of this report would not have been possible without the efficient and dedicated
services of the entire staff of all departments of the Village of Key Biscayne. We would like to
express our appreciation to all members of all of the departments who assisted and contributed to
the preparation of this report. We would also like to express our appreciation to
MarcumRachlin, a division of Marcum LLP, our independent auditors, for their assistance and
efforts in helping the Village prepare the CAFR. Appreciation is also extended to the Mayor and
the Village Council for their unfailing support for maintaining the highest standards of
professionalism in the management of the Village of Key Biscayne's finances.
Respectfjlly submitte
Genaro "Chip" Iglesia
Village Manager
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VILLAGE OF KEY BISCAYNE, FLORIDA
VILLAGE OFFICIALS
SEPTEMBER 30, 2009
VILLAGE COUNCIL
Robert Vernon, Mayor
Enrique Garcia, Vice -Mayor
Jorge Mendia
Michael Davey
Robert Gusman
Thomas Thornton
Michael E. Kelly
VILLAGE MANAGER
Genaro "Chip" Iglesias
VILLAGE CLERK
Conchita H. Alvarez, CMC
VILLAGE ATTORNEY
Weiss Scrota Helfman Pastoriza Cole & Boniske, P.A.
FINANCE DIRECTOR
Beatrice Galeano, P.A.
VILLAGE AUDITORS
MarcumRachlin, a division of Marcum LLP
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Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
Village of Key Biscayne
Florida
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
September 30, 2008
A Certificate of Achievement for Excellence in Financial
Reporting is presented by the Government Finance Officers
Association of the United States and Canada to
government units and public employee retirement
systems whose comprehensive annual financial
reports (CAFRs) achieve the highest
standards in government accounting
and financial reporting.
President
ofeAr,
Executive Director
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VOTERS OF
KEY BISCAYNE
Village
Council
Local Planning
Agency
Village Clerk
Special Master
Village Manager
Village Attorney
Executive Asst
to the
Manager
Police/Fire
Retirement
Board
Department of
Building,
Zoning and
Planning
Building
Zoning
Planning
Code Assistance
Public Safety
Department
Fire Rescue
Police
Department of
Parks and
Recreation
Special Events
Sports and
Athletics
Programs
and Tours
Senior
Coordinator
Department of
Public
Works
Village Engineer
Contract
Supervisor
Stormwater
Management
Refuse
Collection
and Recycling
Maintenance
Department of
Finance and
Administrative
Services
Finance/
Accounting
Personnel/
Benefits
Risk
Management
FINANCIAL SECTION
INDEPENDENT AUDITORS' REPORT
MARCUM
RACH LI N
ACCOUNTANTS A ADVISORS
Independent Auditors' Report
Honorable Mayor, Village Council and Village Manager
Village of Key Biscayne, Florida
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 the
Village of Key Biscayne, Florida (the Village) as of September 30, 2009 and for the fiscal year
then ended, which collectively comprise the Village's basic financial statements as listed in the
table of contents. These financial statements are the responsibility of the Village's management.
Our responsibility is to express opinions on these financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United
States of America and the standards applicable to financial audits contained in Government
Auditing Standards, issued by the Comptroller General of the United States. Those standards
require that we plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit includes consideration of
internal control over financial reporting as a -basis for designing audit procedures that are
appropriate in the circumstances, but not for the purposes of expressing an opinion on the
effectiveness of the Village's internal control over financial reporting. Accordingly, we express
no such opinion. An audit also includes examining, on a test basis, evidence supporting the
amounts and disclosures in the financial statements, assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for our opinions.
In our opinion, the financial statements referred to above present fairly, in all material respects,
the respective financial position of the governmental activities, the business -type activities, each
major fund and the aggregate remaining fund information of the Village of Key Biscayne, Florida
as of September 30, 2009 and the respective changes in the financial position and cash flows,
where applicable, thereof for the year then ended, in conformity with accounting principles
generally accepted in the United States of America.
1
MARCUMGROUP
MEMBER
MarcumRachlin a Division of Marcum ALP • marcumrachlin.com
One Southeast Third Avenue • Tenth Floor • Miami, Florida 33131 • Phone 305.377.4228 • Fax 305.377.8331
NEW YORK • NEW JERSEY • CONNECTICUT • PENNSYLVANIA • FLORIDA • GRAND CAYMAN
In accordance with Government Auditing Standards, we have also issued a report dated April 21,
2010 on our consideration of the Village's internal control over financial reporting and on our
tests of its compliance with certain provisions of laws, regulations, contracts and grant
agreements and other matters. The purpose of that report is to describe the scope of our testing
of internal control over financial reporting and compliance and the results of that testing, and not
to provide an opinion on the internal control over financial reporting or on compliance. That
report is an integral part of an audit performed in accordance with Government Auditing
Standards and should be considered in assessing the results of our audit.
Management's Discussion and Analysis and the required supplementary information on pages 3
through 10 and pages 46 through 49, respectively, are not a required part of the basic financial
statements but are supplementary information required by accounting principles generally
accepted in the United States of America. We have applied certain limited procedures, which
consisted principally of inquiries of management regarding the methods of measurement and
presentation of the required supplementary information. However, we did not audit the
information and express no opinion on it.
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the Village of Key Biscayne's basic financial statements. The introductory
section and statistical tables are presented for purposes of additional analysis and are not a
required part of the basic financial statements. Similarly, the accompanying schedule of
expenditures of federal awards is presented for purposes of additional analysis as required by
OMB Circular A-133 and is not a required part of the basic financial statements. The schedule of
expenditures of federal awards has been subjected to the auditing procedures applied in the audit
of the basic financial statements and, in our opinion, is fairly stated, in all material respects, in
relation to the basic financial statements taken as a whole. The information included in the
introductory and statistical sections has not been subjected to the auditing procedures applied by
us in the audit of the basic financial statements and, accordingly, we express no opinion on them.
(-1rcauu,74acliz;t
a division of Marcum LLP
Miami, Florida
April 21, 2010
2
MARCUM
RACH LI N
ACCOUNTANTS , ADVISORS
A division of Marcum LLP
MANAGEMENT'S DISCUSSION AND ANALYSIS
(MD&A)
Management's Discussion and Analysis
As Management of the Village of Key Biscayne, we offer readers of the Village of Key Biscayne's
(the Village) financial statements this narrative overview and analysis of the financial activities of the
Village of Key Biscayne for the fiscal year ended September 30, 2009. We encourage readers to
consider information presented here in conjunction with additional information that we have furnished
in our letter of transmittal which can be found on pages i-iv of this report.
Financial Highlights
• The assets of the Village of Key Biscayne exceeded its liabilities at the close of the most recent
fiscal year by $68,883,100 (net assets).
• The Village's total net assets increased by $13,569,859. This is attributable to an increase in
revenues from the Key Biscayne Community Center programs and capital grants for construction.
• At the close of the current fiscal year, the Village of Key Biscayne's governmental funds reported
an ending fund balance of $17,695,512, an increase of $4,312,735 in comparison with the prior
year. The total amount of fund balance is either reserved or designated for spending at the
Council's direction.
• The Village incurred $2,067,002 of new debt during the current fiscal year.
Overview of the Financial Statements
This discussion and analysis are intended to serve as an introduction to the Village of Key Biscayne's
basic financial statements. The Village of Key Biscayne's basic financial statements comprise three
components: 1) government -wide financial statements, 2) fund financial statements, and 3) notes to the
financial statements. This report also contains required supplementary information in addition to the
basic financial statements themselves.
Government -wide financial statements. The government -wide financial statements are designed to
provide readers with a broad overview of the Village of Key Biscayne's finances, in a manner similar
to a private sector business.
The statement of net assets presents information on all of the Village of Key Biscayne's assets and
liabilities, with a difference between the two reported as net assets. Over time, increases or decreases
in net assets may serve as a useful indicator of whether the financial position of the Village of Key
Biscayne is improving or deteriorating.
The statement of activities presents information showing how the government's net assets changed
during the most recent fiscal year. All changes in net assets 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
periods (e.g., uncollected taxes and earned but unused vacation leave).
Both of the government -wide financial statements distinguish functions of the Village of Key Biscayne
that are principally supported by taxes and intergovernmental revenues (governmental activities) from
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 the Village of Key Biscayne include
general government, public works, police, fire, parks and recreation and building planning and zoning.
3
The government -wide financial statements include only the Village of Key Biscayne itself (known as
the primary government).
The government -wide financial statements can be found on pages 11 and 12 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. The Village of Key
Biscayne, like other state and local governments, uses fund accounting to ensure and demonstrate
compliance with finance -related legal requirements. The Village of Key Biscayne has two fund
categories, the governmental funds and the proprietary 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 statement focus on near -term
inflows and outflows of spendable resources as well as on balances of spend able resources available at
the end of the fiscal year. Such information may be useful in evaluating a government's near -term
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 the 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. Both the governmental fund balance sheet and the governmental fund statement of
revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this
comparison between governmental funds and governmental activities.
The Village of Key Biscayne maintains three governmental funds, the general fund, a special revenue
fund and a capital projects fund.
The Village of Key Biscayne adopts an annual appropriated budget for its general fund. A budgetary
comparison statement has been provided for the general fund to demonstrate compliance with this
budget.
The basic governmental fund financial statements can be found on pages 13 to 15 of this report.
Proprietary Funds. The Village maintains one type of proprietary fund. Enterprise funds are used to
report the same functions presented as business -type activities in the government -wide financial
statements. The Village uses enterprise funds to account for its Stormwater, Solid Waste Collection
and Sanitary Sewer Construction operations.
The basic proprietary fund financial statements can be found on pages 16-18 of this report.
Fiduciary Funds. Fiduciary funds are used to account for resources held for the benefit of parties
outside the Village. 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 can be found on pages 19-20 of this report.
4
Notes to the basic financial statements. The notes provide additional information that is essential to
a full understanding of the data provided in the government -wide and fund financial statements. The
notes to the financial statements can be found on pages 21 to 45 of this report.
Other Information
In addition to the basic financial statements and accompanying notes, this report also presents certain
required supplementary information including budgetary comparisons and the Village's progress in
funding its obligation to provide pension benefits to its employees.
Required supplementary information can be found on pages 46 to 49 of this report.
Government -wide Financial Analysis
As noted earlier, net assets may serve over time as a useful indicator of a government's financial
position. In the case of the Village of Key Biscayne, assets exceeded liabilities by $68,883,100 at the
close of the most recent fiscal year.
A portion of the Village's assets, $93,234,475 or 82%, reflects its investment in capital assets (e.g.,
land and equipment). The Village of Key Biscayne uses these capital assets to provide services to
citizens; consequently, these assets are not available for future spending.
Our analysis of the financial statements of the Village begins below. The Statement of Net Assets and
the Statement of Activities report information about the Village's activities that will help answer
questions about the position of the Village. A comparative analysis is provided.
Governmental Activities. Governmental activities increased the Village of Key Biscayne net assets
by approximately $6,497,463. This increase is attributable to the increase in revenues from the Key
Biscayne Community Center programs and increased code compliance activities. All other
governmental activities increased net assets as follows:
• Property taxes decreased by $ 281,263 (1.40 percent) during the year. This decrease is the
product of a substantial decline in the countywide taxable value of existing properties in Miami -
Dade County.
• Capital grants decreased due to the completion of the Crandon Boulevard project.
• Most department salaries increased 10 percent due to the Village's salary step program, which in
fiscal year 2009 reflected a 5 percent increase in salaries and a 3 percent increase for a cost of
living increase.
• Debt service remained fairly level compared to the prior year, with a minor addition for interest
on new debt.
For the most part, increases in expenses closely paralleled inflation and growth in the scope of
services.
Net Assets
A summary of the Village's net assets is presented in Table A-1 and a summary of the changes in net
assets is presented in Table A-2.
5
Current assets
Capital assets, net
Total assets
Current liabilities
Noncurrent liabilities
Investment in capital assets,
net of related debt
Restricted
Unrestricted
Total net assets
Table A - 1
Summary of Net Assets
Governmental Activities Business -type Activities
2009 2008
2009 2008
$ 19,648,439
70,628,369
90,276,808
4,542,106
31,888,646
38,482,242
308,813
15,055,000
$ 15,152,443
70,341,556
85,493,999
4,026,890
34,118,516
36,139,953
284,639
10,924,001
$ 811,128
22,606,106
23,417,234
1,599,476
6,780,714
$ 3,522,363
15,714,252
19,236,615
6,116,628
5,155,339
15,383,765 10,174,333
(346,721) (2,209,685)
Total
2009
$ 20,459,567
93,234,475
113,694,042
6,141,582
38,669,360
53,866,007
308,813
14,708,279
2008
$ 18,674,806
86,055,808
104,730,614
10,143,518
39,273,855
46,314,286
284,639
8,714,316
$ 53,846,055 $ 47,348,593 $ 15,037,044 $ 7,964,648 $ 68,883,099 $ 55,313,241
Revenues:
Program revenues:
Charges for services
Operating grants and contnbutions
Capital grants and contnbutions
General revenues:
Property taxes
Utility taxes
Franchise fees
Unrestricted intergovernmental revenue
Investment income and
miscellaneous
Total revenues
Expenses:
General government
Public Safety
Parks and Recreation
Public Works
Building Zoning and Planning
Interest on long-term debt
Stormwater
Solid waste collection
Sanitary sewer construction
Total expenses
Changes in net assets before transfers
Transfers
Changes in net assets after transfers
Net assets. beginning as previously reported
Prior period adjustment
Net assets, beginning, as restated
Net assets. ending
Table A - 2
Summary of Changes in Net Assets
Governmental Activities
2009 2008
$ 3.543,1 16 $ 3.234,686
157,912 251,180
1,709,481
19.769.976
2.647,482
992,997
1.348,324
135,969
30,305,257
2.868, 728
11,781,996
4.090,555
1.914,119
1,540.507
1.447,387
23,643,292
6.661,965
(164,502)
6,497.463
47,348,593
47.348.593
$ 53,846,056
20.051,239
2,760,802
1,064, 666
2,265, 243
346,531
29,974,347
3,213,273
1 1.672,048
3.633.233
2.046, 776
1,529,272
1,436.481
23,531,083
6,443,264
(28.134)
6,415.130
40,137,561
795,902
40.933,463
$ 47,348,593
Business -type Activities
2009 2008
2009
Total
$ 1,126.894 $1,029,904 $ 4,670,010
157.912
7,302.630 5,460,763 9,012.111
21,303 48.202
8,450,827 6,538,869
779,856 911,500
618,155 619,823
144,922 9,046
1,542,933 1,540.369
6,907,894 4,998,500
164.502 28,134
7.072,396 5.026,634
7,964,648 2,938,014
7,964,648
S 15,037,044
2,938,014
$ 7,964,648
19, 769.976
2,647.482
992,997
1.348.324
2008
$ 4.264,590
251,180
5,460,763
20,051,239
2.760.802
1,064.666
2.265.243
157,272 394,733
38,756.084 36,513.216
2.868.728
11.781,996
4.090,555
1.914.1 19
1,540,507
1,447.387
779,856
618,155
144.922
25.186,225
13,569,859
13.569,859
55,313,241
55.313,241
$ 68,883.100
3,213.273
11,672.048
3,633,233
2,046,776
1,529,272
1.436,481
911.500
619,823
9,046
25,071.452
1 1.441,764
11,441.764
43,075,575
795,902
43,871,477
$ 55,313,241
The Village's net assets increased by $13,569,859 during the current fiscal year. This increase is
attributable to $9,012,111 of capital contributions primarily for the Village's sanitary sewer system
project.
6
Business -type Activities
Business -type activities increased the Village's net assets by 7,072,396.
• In fiscal 2009, one of the three business -type activities reflected operational profits.
• The Stormwater Utility Fund reflected a net loss of $280,382, due mainly to depreciation expense
in the amount of $273,919. Also reflected in this loss is a decrease in interest income due to
lowered interest rates. Expenses decreased from prior year due to extensive maintenance
performed in the prior year.
• The Solid Waste Collection Fund reported net income of $17,755, due mainly to increased rates,
compared to an operating loss of $87,278 in the prior year.
• The Sanitary Sewer Construction Fund construction activity is currently ongoing and therefore
there was an increase in capital grants.
Governmental Activities
Revenues by Sources - Governmental Activities
Charges for
Services, $3,543,116
, 12%
Intergovernmental,
$1,348,324 , 5%
Utility Taxes,
$2,647,482 , 9%
Franchise Fees,
$992,997 , 3%
Operating Grants
and Contributions,
$1,867,393 , 6%
Investment
Earnings, $44,737 ,
0%
Other, $91,232 , 0%
Ad Valorem Taxes,
$19,769,976 , 65%
I
Program Expenses
Building, Zoning
and Planning,
$1,540,507 , 7%
Parks and
Recreation,
$4,090,555 ,
17%
Fire, $6,523,753 ,
28%
Interest on Long
Term Debt,
$1,447,387 , 6%
General
Government,
$2,868,728 , 12%
Public Works,
$1,914,119 , 8%
Police, $5,258,243
, 22%
7
Business -type Activities
Revenues- Business Type Activities
Stormwater Charges,
$491,314 , 44%
Solid Waste Charges,
$635,580 , 56%
Solid Waste,
$618,155 , 52%
Expenses- Business Type Activities
Stormwater,
$565,175 , 48%
As noted earlier, the Village of Key Biscayne uses fund accounting to ensure and demonstrate
compliance with finance -related legal requirements.
Governmental funds. The focus of the Village of Key Biscayne's governmental funds is to provide
information on near -term inflows, outflows, and balances of spend able resources. Such information is
useful in assessing the Village's financing requirements.
At the end of the current fiscal year, fund balance of the general fund was $12,318,533, an increase of
$1,020,355 in comparison with the prior year. The increase was primarily caused by an increase in
charges for services. All of this is either reserved or designated for specific uses: (1) emergencies
($4,000,001), (2) Building Inspection Costs ($566,173), (3) Compensated Absences ($450,952), (4) Law
Enforcement Seizures ($308,813), (5) Fire Rescue Transport Fees ($287,913), (6) Working Capital
Reserves ($1,992,064), (7) Prepaid Items ($250,693), (8) Police Labor ($90,000), (9) Fire Grant Revenue
— Urban Area Security Initiative ($50,722), (10) Capital Improvement Plan ($1,130,089), (11) Playing
8
Field Acquisitions ($416,403), (12) Police/Administration Building Reserve ($13,632), (13) Fire Station
Building Reserve ($13,632), (14) Community Center Equipment Reserve ($50,000), (15) Fire Vehicles
Replacement Reserve ($50,000), (16) Master Plan Initiatives ($1,873,764), (17) Capital Lease
($298,682), (18) Roadway Improvements ($175,000) and (19) Recreation Facilities ($300,000).
The general fund is the chief operating fund of the Village of Key Biscayne. As a measure of the
general fund's liquidity, it may be useful to compare total fund balance to total fund expenditures.
Total fund balance represents 51.17 percent of total general fund expenditures.
A summary of the general fund's condensed balance sheet and statement of revenues, expenditures and
changes in fund balance is presented in Table B-1 and B-2 for September 30, 2009 and 2008, is shown
as follows:
Table B-1
Summary of Condensed Balance Sheet
2009 2008
Total assets $ 13,969,626 $ 12,794,042
Total liabilities
Reserved or designated fund balance
Total liabilities and fund balance
$ 1,651,093 $ 1,495,864
12,318,533 11,298,178
$ 13,969,626 $ 12,794,042
Table B-2
Summary of Condensed Statement of Revenues,
Expenditures and Changes in Fund Balances
Total revenues
Total expenditures
Excess of revenues over expenditures
2009 2008
$ 28,492,608 $ 28,252,1 13
24,071,557 22,389,637
$ 4,421,051 $ 5,862,476
The Special Revenue Fund was established to account for the construction and future maintenance of
the Village's roadways. Bond revenue and County bridge toll revenues are the source of funding for
construction of roadways, while the local option gas tax funds maintenance and the transportation
surtax funds debt service.
At present, the fund shows a negative fund balance due to phase three of the Crandon Boulevard
Improvement Project, which was to be corrected with the Series 2006 Roadway Improvement Revenue
Bonds, issued in late December 2006. The remainder of the negative fund balance will be eliminated
with revenues in subsequent years from County bridge toll revenues and County CITT revenues.
The Capital Improvement Fund receives an annual budgeted transfer from the general fund to fund
capital construction of infrastructure at various locations on the island. All transfers are allocated to
specific projects by management and the council during the annual budgeting process. The fund
balance increased by $2,092,139 during the current fiscal period. Fund balance is comprised of funds
allocated to named projects with varied stages of completion.
General Fund Budgetary Highlights
There were three departments with excess of expenditures over appropriations on a GAAP basis,
however, prior year reserves were established for these purposes (budget to actual variances): Village
Attorney, Fire and, Parks and Recreation. These variances were cause by the following:
9
• Attorney — excess code enforcement litigation in addition to negotiations with police, fire and
general employee unions.
• Fire — due to the implementation of the collective bargaining agreement with the fire union.
• Parks and Recreation - an Athletics Division was added. Sports program revenues offset this variance.
Capital Assets
As of September 30, 2009, the Village's capital assets net of accumulated depreciation amounted to
$93,234,475 compared to $86,055,808 for 2008. Major capital asset events during the fiscal year
included the following:
• Enhancements to Channel 77, the Village's cable channel for government access programming.
• The Village initiated a planning process to determine the feasibility of establishing a municipal
charter high school.
• Continuation of the Beach Renourishment program.
• Continuation of the Sanitary Sewer Project.
Additional information on the Village's capital assets can be found in Note 7 on pages 32-33 of this report.
Debt Administration
At September 30, 2009, the Village had bonded debt outstanding of $39,262,501. Of this amount,
$6,635,976 represents bonds secured solely by specified revenue sources (Transportation Tax Revenue
Bonds and Road Improvement Revenue Bonds). The remainder is special obligation bonds that are
secured by non -ad Valorem revenues through covenants to budget and appropriate.
The Village's total net debt outstanding increased by $2,067,002 due to a revolving loan agreement
with the State of Florida Department of Environmental Protection for the financing of the Sanitary
Sewer Project construction.
Additional information on the Village's long-term debt can be found in Note 9 on pages 34-40 of this report.
Economic Factors and Next Year's Budgets and Rates
• The unemployment rate for Miami -Dade County is currently 11.50 percent, which is an increase
from a rate of 5.9 percent a year ago. This is favorable to the state's average unemployment rate
of 11.6 percent as well as the national average rate of 10.4 percent.
• The occupancy rate of the Village's retail rentals has remained stable for the past several years.
• Inflationary trends in the region compare favorably to national indices.
• The Village's millage rate remained at 3.200 per $1,000 of assessed value for 2010.
All of these factors were considered in preparing the Village of Key Biscayne's budget for the 2010
fiscal year.
Requests for Information
This financial report is designed to provide a general overview of the Village of Key Biscayne's
finances for all those with an interest in the government's finances. Questions concerning any of the
information provided in this report or requests for additional financial information should be addressed
to the Office of the Village Manager, 88 West McIntyre Street, Key Biscayne, Florida 33149.
10
BASIC FINANCIAL STATEMENTS
VILLAGE OF KEY BISCAYNE, FLORIDA
STATEMENT OF NET ASSETS
SEPTEMBER 30, 2009
Assets
Cash and cash equivalents
Receivables, net
Due from other governments
Prepaids
Internal balances
Negative net pension obligation
Other assets
Restricted assets:
Cash and cash equivalents
Investments
Capital assets not being depreciated
Capital assets being depreciated, net
Total Assets
Liabilities
Accounts payable and accrued liabilities
Accrued interest payable
Payable to pension plan
Unearned revenue
Noncurrent liabilities:
Due within one year
Due in more than one year
Total Liabilities
Net Assets
Invested in capital assets, net of related debt
Restricted for law enforcement
Unrestricted (deficit)
Total Net Assets
Governmental
Activities
Business -
type
Activities
Total
$ 15,076,876
1,356,577
1,000,000
250,693
1,478,620
116,341
18,001
71,365
279,966
35,110,097
35,518,272
90,276,808
935,365
323,434
105,880
665,192
2,512,235
31,888,646
36,430,752
38,482,243
308,813
15,055,000
$ 53,846,056
$ 1,582,321 $ 16,659,197
707,427 2,064,004
-- 1,000,000
250,693
(1,478,620)
15,828,094
6,778,012
23,417,234
1,157,849
441,627
6,780,714
8,3 80,190
15,383,765
(346,721)
$ 15,037,044
116,341
18,001
71,365
279,966
50,938,191
42,296,284
113,694,042
2,093,214
323,434
105,880
665,192
2,953,862
38,669,360
44,810,942
53,866,008
308,813
14,708,279
$ 68,883,100
The accompanying notes are an integral part of these financial statements.
11
VILLAGE OF KEY BISCAYNE, FLORIDA
STATEMENT OF ACTIVITIES
FISCAL YEAR ENDED SEPTEMBER 30, 2009
Functions/Programs
Governmental activities
General government
Police
Fire
Public works
Building, zoning and planning
Parks and recreation
Interest on long-term debt
Total governmental activities
Business -type activities
Stormwater
Solid waste
Sanitary sewer
Total business -type activities
Total
Charges
for
Expenses Services
$ 2,868,728
5,258,243
6,523,753 33,447
1,914,119 16,009
1,540,507 1,173,440
4,090,555 1,957,747 108,456
1,447,387
23,643,292 3,543,116 157,912
Program Revenues
Operating Capital
Grants and Grants and
Contributions Contributions
$ 237,315 $ -- $
38,181
136,433
779,856 491,314
618,155 635,580
144,922
1,542,933 1,126,894
$ 25,186,225 $ 4,670,010 $ 157,912
General Revenues
Property taxes
Franchise fees based on gross receipts
Utility taxes
Communications services tax
Unrestricted intergovernmental revenue
Unrestricted investment earnings
Miscellaneous income
Gain on disposal of capital asset
Transfers
Total General Revenues
Change in Net Assets
Net Assets - Beginning
Net Assets - Ending
1,709,481
1,709,481
331,319
6,971,311
7,302,630
$ 9,012,111
Net (Expense)
Changes in
Governmental
Activities
Revenue and
Net Assets
Business -
type
Activities
$ (2,631,413) $
(5,220,062)
(6,353,873)
(188,629)
(367,067)
(2,024,352)
(1,447,387)
(18,232,783)
(18,232,783)
19,769,976
992,997
1,555,748
1,091,734
1,348,324
44,737
26,232
65,000
(164,502)
24,730,246
6,497,463
47,348,593
$ 53,846,056
42,777
17,425
6,826,389
6,886,591
6,886,591
21,303
164,502
185,805
7,072,396
7,964,648
$ 15,037,044
Total
$ (2,631,413)
(5,220,062)
(6,353,873)
(188,629)
(367,067)
(2,024,352)
(1,447,387)
(18,232,783)
42,777
17,425
6,826,389
6,886,591
(11,346,192)
19,769,976
992,997
1,555,748
1,091,734
1,348,324
66,040
26,232
65,000
24,916,051
13,569,859
55,313,241
$ 68,883,100
The accompanying notes are an integral part of these financial statements.
12
VILLAGE OF KEY BISCAYNE, FLORIDA
BALANCE SHEET
GOVERNMENTAL FUNDS
SEPTEMBER 30, 2009
Assets
Cash and cash equivalents
Receivables, net
Due from other governments
Due from other funds
Prepaid items
Restricted cash and cash equivalents
Restricted investments
Total Assets
Liabilities and Fund Balances
Liabilities
Accounts payable and accrued liabilities
Due to other funds
Payable to pension plan
Deferred revenue
Total Liabilities
General
$ 7,965,910
1,237,905
4,23 5,152
250,693
279,966
$ 13,969,626
Special
Revenue
95,041
1,000,000
71,365
166,406
$ 664,796 $
100,077 2,667,788
105,880
780,340
1,651,093 2,667,788
Total
Capital Governmental
Improvements Funds
$ 7,110,966
23,631
11,333
$ 7,145,930
$ 15,076,876
1,356,577
1,000,000
4,246,485
250,693
71,365
279,966
$ 22,281,962
$ 270,569 $ 935,365
-- 2,767,865
105,880
780,340
270,569 4,589,450
Fund Balances
Reserved (Note 12) 12,318,533 12,318,533
Unreserved, undesignated reported in:
Special revenue fund (deficit) (1,501,382) (1,501,382)
Capital improvements - 6,875,361 6,875,361
Total Fund Balances (Deficit) 12,318,533 (1,501,382) 6,875,361 17,692,512
Total Liabilities and Fund Balances $ 13,969,626 $ 1,166,406 $ 7,145,930
Amounts reported for governmental activities in the statement of net assets are different because:
Capital assets used in governmental activities are not financial resources and, therefore,
are not reported in the funds 70,628,369
A negative net pension obligation (NPO) is not considered to represent a financial
asset and therefore is not reported in the governmental funds 116,341
Long-term receivables are not available to pay for current period
expenditures and, therefore, are not reported in the funds 115,148
Long-term liabilities, including bonds payable, are not due and payable in the current
period and therefore not reported in the funds (34,706,314)
Net Assets of Governmental Activities $ 53,846,056
The accompanying notes are an integral part of these financial statements.
13
VILLAGE OF KEY BISCAYNE, FLORIDA
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
FISCAL YEAR ENDED SEPTEMBER 30, 2009
Revenues
Property taxes
Utility taxes
Communications services tax
Franchise fees
Licenses and permits
Intergovernmental
Charges for services
Interest
Grants
Miscellaneous income
Total Revenues
Expenditures
Current:
General government
Fire
Police
Public works
Building, zoning and planning
Parks and recreation
Capital outlay
Debt service:
Principal
Interest and fiscal charges
Total Expenditures
Excess (deficiency) of revenues
over expenditures
Other Financing Sources (Uses)
Transfers in
Transfers out
Proceeds from sale of capital assets
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances (Deficit) - Beginning
Fund Balances (Deficit) - Ending
General
$ 19,769,976 $
1,555,748
1,279,001
992,997
1,188,297
1,154,946
2,354,365
39,366
157,912
Special Capital
Revenue Improvements
1,892,898
454
28,492,608 1,893,352
2,266,763
6,407,770
5,116,158
1,914,119
1,540,507
3,721,478
293,559
1,641,152
1,170,051
24,071,557
4,421,051
(3,400,696)
(3,400,696)
1,020,355
11,298,178
5,371
9,961
26,232
41,564
8,606
2,358 1,242,013
410,155
280,598
693,111 1,250,619
Total
Governmental
Funds
$ 19,769,976
1,555,748
1,279,001
992,997
1,188,297
3,047,844
2,354,819
44,737
167,873
26,232
30,427,524
2,266,763
6,407,770
5,116,158
1,914,119
1,540,507
3,730,084
1,537,930
2,051,307
1,450,649
26,015,287
1,200,241 (1,209,055) 4,412,237
1,200,241
(2,701,623)
3,236,194 3,236,194
(3,400,696)
65,000 65,000
3,301,194 (99,502)
2,092,139
4,783,222
$ 12,318,533 $ (1,501,382) $ 6,875,361
4,312,735
13,379,777
$ 17,692,512
The accompanying notes are an integral part of these financial statements.
14
VILLAGE OF KEY BISCAYNE, FLORIDA
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES
FISCAL YEAR ENDED SEPTEMBER 30, 2009
Amounts reported for governmental activities in the statement of activities
(Page 12) are different because:
Net change in fund balances - total governmental funds (Page 14)
Governmental funds report capital outlays as expenditures. However, in the
statement of activities, the cost of those assets is allocated over their
estimated useful lives and reported as depreciation expense. This is the
amount by which capital outlays exceeded depreciation in the current period.
The details of the difference are as follows:
Cost of assets $ 1,481,771
Depreciation expense (1,187,420)
Net effect of miscellaneous transactions related to capital assets (8,922)
Net adjustment
Under the modified accrual basis of accounting used in the governmental funds,
revenues are not recognized until funds are measurable and available to
finance current expenditures. In the statement of activities, however, which
is presented on the accrual basis, revenues are reported when earned.
The detail of the difference is as follows:
Communications services tax proceeds
The issuance of long-term debt provides current financial resources to
governmental funds, while the repayment of the principal of long-term debt
consumes the current financial resources of governmental funds.
$ 4,312,735
285,429
(187,267)
The detail of the differences are as follows:
Debt payments 2,051,307
Capital lease payments 107,827
Other (103,657) 2,055,477
Some expenses reported in the statement of activities do not require current
financial resources and, therefore, are not reported as expenditures in
governmental funds.
The details of the difference is:
Compensated absences 32,998
Accrued interest expense 4,646
Debt issuance costs (1,384)
Negative net pension obligation (5,171) 31,089
Change in net assets of governmental activities (Page 12) $ 6,497,463
The accompanying notes are an integral part of these financial statements.
15
VILLAGE OF KEY BISCAYNE, FLORIDA
STATEMENT OF NET ASSETS
PROPRIETARY FUNDS
SEPTEMBER 30, 2009
Business -type Activities -
Enterprise Funds
Assets
Current assets
Cash and cash equivalents
Accounts receivables, net
Due from other funds
Total Current Assets
Noncurrent Assets
Capital assets not being depreciated
Capital assets being depreciated, net
Total Noncurrent Assets
Total Assets
Liabilities
Current Liabilities
Accounts payable and accrued liabilities
Due to other funds
Current portion of revolving loans
Current portion of revenue bonds payable
Total Current Liabilities
Noncurrent Liabilities
Revenue bonds
Revolving loans
Total -Noncurrent Liabilities
Total Liabilities
Net Assets
Invested in capital assets, net of related debt
Unrestricted (deficit)
Total Net Assets
Stormwater
Utility
System
Sanitary
Sewer
Construction
Solid
Waste
Totals
$ 109,608 $
94,342
88,744
292,694
6,778,012
6,778,012
7,070,706
14,684
385,000
399,684
4,450,000
4,450,000
4,849,684
808,391 $ 664,322 $ 1,582,321
156,510 456,575 707,427
88,744
964,901 1,120,897 2,378,492
15,828,094
15,828,094
15,828,094
6,778,012
22,606,106
16,792,995 1,120,897 24,984,598
1,041,661 101,504
769,227 798,137
56,627
1,157,849
1,567,364
56,627
385,000
1,867,515 899,641 3,166,840
2,330,714
2,330,714
4,450,000
2,330,714
6,780,714
4,198,229 899,641 9,947,554
1,943,012 13,440,753 15,383,765
278,010 (845,987) 221,256 (346,721)
$ 2,221,022 $ 12,594,766 $ 221,256 $ 15,037,044
The accompanying notes are an integral part of these financial statements.
16
VILLAGE OF KEY BISCAYNE, FLORIDA
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS
PROPRIETARY FUNDS
FISCAL YEAR ENDED SEPTEMBER 30, 2009
Business -type Activities -
Enterprise Funds
Stormwater Sanitary
Utility Sewer Solid
System Construction Waste Totals
Operating Revenues
Charges for services $ 491,314 $ $ 635,580 $ 1,126,894
Operating Expenses
General and administrative 291,256 -- 618,155 909,411
Depreciation 273,919 273,919
Total Operating Expenses 565,175 618,155 1,183,330
Operating Income (Loss) (73,861) 17,425 (56,436)
Non -Operating Revenues (Expenses)
Interest income 8,160 12,813 330 21,303
Interest expense (214,681) (144,922) (359,603)
Total Non -Operating Revenues
(Expenses) (206,521) (132,109) 330 (338,300)
Income (Loss) before Contributions
and Transfers (280,382) (132,109) 17,755 (394,736)
Capital contributions 331,319 6,971,311 7,302,630
Transfers in 164,502 164,502
Total Contributions and Transfers 331,319 7,135,813 7,467,132
Change in Net Assets
Net Assets - Beginning
Net Assets - Ending
50,937 7,003,704 17,755 7,072,396
2,170,085 5,591,062 203,501 7,964,648
$ 2,221,022 $ 12,594,766 $ 221,256 $ 15,037,044
The accompanying notes are an integral part of these financial statements.
17
VILLAGE OF KEY BISCAYNE, FLORIDA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FISCAL YEAR ENDED SEPTEMBER 30, 2009
Business -type Activities -
Enterprise Funds
Cash Flows from Operating Activities
Receipts from customers and users
Payments to suppliers
Net Cash Provided by Operating Activities
Cash Flows from Non -Capital Financing Activities
Transfers from other funds
Net Cash Provided by Non -Capital
Financing Activities
Cash Flows from Capital and Related Financing Activities
Capital contributions
Proceeds from revolving loan
Payment on short-term revenue bonds
Payments for construction of capital assets
Payments on revenue bonds
Payments on revolving loans
Interest paid
Net Cash Used by Capital
and Related Financing Activities
Cash Flows- from Investing Activities
Interest received
Net Cash Provided by Investing Activities
Net Increase (Decrease) in Cash and Cash Equivalents
Cash and Cash Equivalents - Beginning
Cash and Cash Equivalents - Ending
Reconciliation of Operating Income (Loss) to Net Cash
Provided by Operating Activities
Operating income (loss)
Adjustments to reconcile operating income (loss) to net
cash provided by operating activities:
Depreciation
Changes in operating assets and liabilities:
Increase in:
Accounts receivable
Increase (decrease) in:
Accounts payable and accrued liabilities
Deferred revenue
Due to other funds
Total adjustments
Net Cash Provided by Operating Activities
Stormwater
Utility
System
Sanitary
Sewer
Construction
Solid
Waste Totals
$ 555,071
(427,493)
127,578
242,575
(365,000)
(214,681)
(337,106)
8,160
8,160
(201,368)
310,976
$ 109,608
$
164,502
164,502
9,613,601
2,067,002
(5,000,000)
(8,014,714)
(19,580)
(144,922)
(1,498,613)
12,813
12,813
(1,321,298)
2,129,689
$ 698,358 $ 1,253,429
(194,773) (622,266)
503,585 631,163
164,502
164,502
9,856,176
2,067,002
(5,000,000)
(8,014,714)
(365,000)
(19,580)
(359,603)
(1,835,719)
330 21,303
330 21,303
503,915 (1,018,751)
160,407 2,601,072
$ 808,391 $ 664,322
$ (73,861) $
273,919
63,757
(18,462)
(117,775)
201,439
$ 127,578 $
$ 1,582,321
-- $ 17,425 $ (56,436)
62,778
52,193
(29,159)
400,348
273,919
126,535
33,731
(29,159)
282,573
486,160 687,599
-- $ 503,585 $ 631,163
The accompanying notes are an integral part of these financial statements.
18
VILLAGE OF KEY BISCAYNE, FLORIDA
STATEMENT OF FIDUCIARY NET ASSETS
PENSION TRUST FUND
SEPTEMBER 30, 2009
Assets
Investments
Money market funds $ 944,108
Common stocks 4,111,089
Mutual funds 6,978,035
Total Investments 12,033,232
Contributions Receivable
Village (including State)
Total Assets
Liabilities
Payables
Net Assets
113,737
12,146,969
Net Assets Held in Trust for Pension Benefits $ 12,146,969
The accompanying notes are an integral part of these financial statements.
19
VILLAGE OF KEY BISCAYNE, FLORIDA
STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS
PENSION TRUST FUND
FISCAL YEAR ENDED SEPTEMBER 30, 2009
Additions
Contributions
Plan members $ 665,920
Village (including State) 1,019,457
Total Contributions 1,685,377
Investment Income
Net appreciation in the fair value of investments 443,688
Interest and dividends 105,983
549,671
Less investment expenses (77,018)
Net Investment Income 472,653
Total Additions 2,158,030
Deductions
Benefits paid 260,182
Administrative expenses 94,175
Total Deductions 354,357
Change in Net Assets
Net Assets - Beginning
Net Assets - Ending
1,803,673
10,343,296
$ 12,146,969
The accompanying notes are an integral part of these financial statements.
20
NOTES TO BASIC FINANCIAL STATEMENTS
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FISCAL YEAR ENDED SEPTEMBER 30, 2009
NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Village of Key Biscayne, Florida (the Village), located in Miami -Dade County, is a
political subdivision of the State of Florida. The Village, which was incorporated in 1991,
operates under a Council -Manager form of government. In addition to the general
government function, the Village provides its residents with public works, public safety
(police and fire), parks and recreation, building, zoning and planning functions, sanitation
and stormwater management. The Village does not provide educational or hospital
facilities; those services are provided by the Miami -Dade County School Board and Miami -
Dade County, respectively.
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
principles. The more significant of the Village's accounting policies are described below:
A. FINANCIAL REPORTING ENTITY
The financial statements were prepared in accordance with GASB Statements related to The
Financial Reporting Entity, which establishes standards for defining and reporting on the
fmancial reporting entity. The definition of the financial reporting entity is based upon the
concept that elected officials are accountable to their constituents for their actions. One of the
objectives of financial reporting is to provide users of financial statements with a basis for
assessing the accountability of the elected officials. The financial reporting entity consists of
the Village, organizations for which the Village is financially accountable, and other
organizations for which the nature and significance of their relationship with the Village are
such that exclusion would cause the reporting entity's financial statements to be misleading or
incomplete. The Village is financially accountable for a component unit if it appoints a voting
majority of the organization's governing board and it is able to impose its wilL on that
organization or there is a potential for the organization to provide specific fmancial benefits to,
or impose specific financial burdens on, the Village. Based upon the application of these
criteria, there were no organizations that met the criteria described above.
B. GOVERNMENT -WIDE AND FUND FINANCIAL STATEMENTS
The government -wide financial statements (i.e., the statement of net assets and the statement
of activities) report information on all of the non -fiduciary 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.
21
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FISCAL YEAR ENDED SEPTEMBER 30, 2009
NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
B. GOVERNMENT -WIDE AND FUND FINANCIAL STATEMENTS (CONTINUED)
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.
C. MEASUREMENT FOCUS, BASIS OF ACCOUNTING, AND FINANCIAL STATEMENT
PRESENTATION
The government -wide financial statements are reported using the economic resources
measurement focus and the accrual basis of accounting, as are the proprietary fund and
fiduciary fund financial statements. Revenues are recorded when earned and expenses are
recorded when a liability is incurred, regardless of the timing of 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 revenues to be
available if they are collected within 60 days of the end of the current fiscal period.
Expenditures 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 fees and other 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.
22
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FISCAL YEAR ENDED SEPTEMBER 30, 2009
NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
C. MEASUREMENT FOCUS, BASIS OF ACCOUNTING, AND FINANCIAL STATEMENT
PRESENTATION (CONTINUED)
The Village reports the following major governmental funds:
The General 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.
The Special Revenue Fund accounts for the revenues received from the transportation
surtax and expenditures for related transportation costs.
The Capital Improvement Fund accounts for the acquisition or construction of various
major capital projects.
The Village reports the following major proprietary funds in the basic financial statements:
The Stormwater Utility Fund accounts for the construction and maintenance of the
Village's stormwater system.
The Sanitary Sewer Fund accounts for the development and construction of a municipal
sanitary sewer system to the unsewered areas of the community.
The Solid Waste Fund accounts for the provision of solid waste disposal services to
Village residents and businesses.
Additionally, the Village reports the following fund types:
The Pension Trust Fund is used to account for the Village's single -employer defined
benefit pension plan covering substantially all of its police officers and firefighters.
Private -sector standards of accounting and financial reporting issued prior to December 1,
1989, generally are followed in both the government -wide and proprietary fund financial
statements to the extent that those standards do not conflict with or contradict guidance of
the Governmental Accounting Standards Board. The Village has the option of following
subsequent private -sector guidance for their business -type activities and enterprise funds,
subject to this same limitation. The Village has elected not to follow subsequent private -
sector guidance.
23
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FISCAL YEAR ENDED SEPTEMBER 30, 2009
NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
C. MEASUREMENT FOCUS, BASIS OF ACCOUNTING, AND FINANCIAL STATEMENT
PRESENTATION (CONTINUED)
As a general rule, the effect of interfund activity has been eliminated from the government -
wide financial statements. Exceptions to this general rule are payments -in -lieu of taxes and
other charges between the Village's various utility functions and various other functions.
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, 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.
Proprietary funds distinguish operating revenues and expenses from nonoperating 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 Village's stormwater utility, solid waste services
and sanitary sewer construction funds are charges to customers for services. Operating
expenses for enterprise funds include the costs of services, administrative expenses, and
depreciation on capital assets. All revenues and expenses not meeting this definition are
reported as nonoperating revenues and expenses.
When both restricted and unrestricted resources are available for use, it is the Village's
policy to use restricted resources first, then unrestricted resources as they are needed.
D. ASSETS, LIABILITIES, AND NET ASSETS OR EQUITY
1. Deposits and Investments
The Village's cash and cash equivalents include cash on hand, certificates of deposit
with original maturities of three months or less from the date of acquisition and a
repurchase agreement. All other investments, including pension investments, are
recorded at fair value. Fair value is determined by quoted market prices.
2. Interfund Receivables and Payables
Activities between funds that are representative of lending/borrowing arrangements
outstanding at the end of the fiscal year are referred to 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".
24
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FISCAL YEAR ENDED SEPTEMBER 30, 2009
NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
D. ASSETS, LIABILITIES, AND NET ASSETS OR EQUITY (CONTINUED)
3. Receivables
Receivables include amounts due from other governments and others for services
provided by the Village. Receivables are recorded and revenues are recognized as
earned or as specific program expenditures/expenses are incurred. Allowances, if any,
for uncollectible receivables are based upon historical trends and the periodic aging of
receivables.
4. Capital Assets
Capital assets, which include property, plant and equipment, and infrastructure assets
(e.g., utility plant, roads, bridges, sidewalks, and similar items), are reported in the
applicable governmental or business -type activities columns in the government -wide
financial statements. Capital assets are defined by the Village as assets with an initial,
individual cost of more than $750 and an estimated useful life in excess of one year. Such
assets are recorded at historical cost or estimated historical cost if purchased or
constructed. Donated capital assets are recorded at estimated fair market value at the date
of donation. All infrastructure assets have been capitalized since inception of the Village.
The costs of normal maintenance and repairs that do not add to the value of the asset or
materially extend asset lives are not capitalized. Major outlays for capital assets and
improvements are capitalized as projects are constructed. Interest incurred during the
construction phase of capital assets of business -type activities is included as part of the
capitalized value of the asset constructed. No such costs were capitalized in 2009.
Capital assets of the Village are depreciated using the straight line method over the
following estimated useful lives:
Assets Years
Buildings 25-50
Improvements other than buildings 10-50
Furniture, fixtures and equipment 10
Stormwater utility system 50
5. Unearned/Deferred Revenue
Inflows that do not yet meet the criteria for revenue recognition are recorded as
unearned revenue in the government -wide statements and as deferred revenue in the
fund financial statements. Unearned/deferred revenue consists primarily of community
center membership dues.
25
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FISCAL YEAR ENDED SEPTEMBER 30, 2009
NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
D. ASSETS, LIABILITIES, AND NET ASSETS OR EQUITY (CONTINUED)
6. Compensated Absences
It is the Village's policy to permit employees to accumulate within certain limits,
earned but unused vacation time and sick leave, which will be paid to employees upon
separation from Village service. All vacation and sick leave pay is accrued when
incurred in the government -wide and proprietary fund financial statements. In the
governmental funds, a liability is recorded only for vacation and sick leave payouts for
employee separations that occurred prior to September 30, 2009 and were subsequently
paid with current available financial resources. The general fund typically is used to
liquidate the liability for compensated absences.
7. 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 assets. Bond premiums and discounts, as well as
issuance costs, are deferred and amortized over the life of the bonds using the straight-
line amortization method. The results of using this method do not differ significantly
from the effective interest method. 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, whether or not withheld from the
actual debt proceeds received, are reported as debt service expenditures.
8. 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 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.
26
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FISCAL YEAR ENDED SEPTEMBER 30, 2009
NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
D. ASSETS, LIABILITIES, AND NET ASSETS OR EQUITY (CONTINUED)
9. Fund Equity
In the fund financial statements, governmental funds report reservations of fund balance
for amounts that are not available for appropriation or are legally restricted by outside
parties for use for a specific purpose. Designations of fund balance, where noted,
represent tentative management plans that are subject to change.
10. Net Assets
Net assets of the government -wide and proprietary funds are categorized as invested in
capital assets, net of related debt; restricted or unrestricted. Investment in capital assets,
net of related debt, is that portion of net assets that relates to the Village's capital assets
reduced by accumulated depreciation and by any outstanding debt incurred to acquire,
construct or improve those assets, excluding unexpended proceeds.
Restricted net assets is that portion of net assets that has been restricted for general use
by external parties (creditors, grantors, contributors, or laws or regulations of other
governments) or imposed by law through constitutional provisions or enabling
legislation. Unrestricted net assets- consist of all net assets that do not meet the
definition of either of the other two components.
NOTE 2 — EXPLANATION OF CERTAIN DIFFERENCES BETWEEN THE GOVERNMENTAL FUND
BALANCE SHEET AND THE GOVERNMENT -WIDE STATEMENT OF NET ASSETS
The governmental fund balance sheet includes a reconciliation between fund balance — total
governmental funds and net assets — governmental activities as reported in the government -
wide statement of net assets. One element of that reconciliation explains that long-term
liabilities, including bonds payable, are not due and payable in the current period and
therefore are not reported in the funds. The details of this $34,706,314 difference are as
follows:
Bonds Payable $ 32,040,160
Debt Issuance Costs (18,001)
Capital Leases Payable 105,966
Compensated Absences 2,254,755
Accrued Interest Payable 323,434
$ 34,706,314
27
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FISCAL YEAR ENDED SEPTEMBER 30, 2009
NOTE 3 — DEPOSITS AND INVESTMENTS
DEPOSITS
In addition to insurance provided by the Federal Depository Insurance Corporation, all
deposits are held in banking institutions approved by the State Treasurer of the State of
Florida to hold public funds. Under Florida Statutes Chapter 280, Florida Security for Public
Deposits Act, the State Treasurer requires all Florida qualified public depositories to deposit
with the Treasurer or another banking institution eligible collateral. In the event of a failure of
a qualified public depository, the remaining public depositories would be responsible for
covering any resulting losses. Accordingly, all amounts reported as deposits are insured or
collateralized with securities held by the entity or its agent in the entity's name.
INVESTMENTS
The Village is authorized to invest in obligations of the U.S. Treasury, its agencies,
instrumentalities and the Florida PRIME (formerly known as the Local Government Surplus
Funds Trust Fund (LGIP)) administered by the State Board of Administration. The
investments follow the investment rules defined in Florida Statutes Chapter 218.415. 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.
INVESTMENTS — VILLAGE
As of September 30, 2009, the Village had the following investments with its corresponding
maturities in its portfolio:
Investment Maturities
(In Years)
Fair Less
Investments Value Than 1
Repurchase agreements $ 4,574,508 $ 4,574,508
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 formal investment policy that limits investment
maturities as a means of managing its exposure to market value losses arising from
increasing interest rates.
Custodial Credit Risk
For an investment, custodial credit risk is the risk that, in the event of the failure of the
counterparty, the Village will not be able to recover the value of its investments or collateral
28
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FISCAL YEAR ENDED SEPTEMBER 30, 2009
NOTE 3 — DEPOSITS AND INVESTMENTS (CONTINUED)
INVESTMENTS — VILLAGE (CONTINUED)
Custodial Credit Risk (Continued)
securities that are in the possession of an outside party. The Village's $4.6 million
investment in repurchase agreements is held by the investment's counterparty, not in the
name of the Village. The Village's investment policy does not have a limit on holding of
securities by counterparties.
INVESTMENTS — PENSION PLAN
As of September 30, 2009, the Village's Defined Benefit Pension Plan had the following
investments with its corresponding maturities in its portfolio:
Investment Maturities (In Years)
Investments
Fair Less
Value Than 1 1-5 6-10 10+
Bond Mutual Funds $ 3,835,672 $ 533,158 $ 1,791,259 $ 932,068 $ 579,186
Interest Rate Risk
Interest rate risk refers to the portfolio's exposure to fair value losses arising from increasing
interest rates. The Plan does not have a formal investment policy that limits investment
maturities as a means of managing its exposure to market value losses arising from
increasing interest rates.
Credit Risk
State law and the Plan's investment policy limits investments in bonds, stocks, or other
evidences of indebtedness issued or guaranteed by a corporation organized under the laws
of the United States, any state or organized territory of the United States, or the District of
Columbia, provided the corporation is listed on any one or more of the recognized national
stock exchanges or on the National Market System of the NASDAQ Stock Market and in
the case of bonds only, holds a rating in one of the three highest classifications by a major
rating service. The Plan's investment policy limits fixed income investments to a rating no
lower than Standard & Poor's BBB or Moody's BAA.
The Plan's bond mutual funds were all rated "A" or better under Standard & Poor's ratings.
Concentration of Credit Risk
The Plan's investment policy prohibits equity and fixed income securities concentrations
greater than 5% and 10%, respectively, in any one issuer with the exception of U.S.
government or agency issues. As of September 30, 2009, the value of each position held in
the Plan's portfolio comprised less than 5% of Plan investment assets.
29
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FISCAL YEAR ENDED SEPTEMBER 30, 2009
NOTE 3 — DEPOSITS AND INVESTMENTS (CONTINUED)
RISKS AND UNCERTAINTIES
The Village and the Plan invest in various investment securities. Investment securities are
exposed to various risks such as interest rate, market, and credit risks. Due to the level of risk
associated with certain investment securities, it is at least reasonably possible that changes in
the values of investment securities will occur in the near term and that such changes could
materially affect the amounts reported in the financial statements. The Village and the Plan,
through its investment advisor, monitors the investments and the risks associated therewith on
a regular basis which the Village and the Plan believes minimizes these risks.
Plan contributions are made and the actuarial present value of accumulated plan benefits are
reported based on certain assumptions pertaining to interest rates, inflation rates and employee
demographics, all of which are subject to change. Due to uncertainties inherent in the
estimations and assumptions process, it is at least reasonably possible that changes in these
estimates and assumptions in the near term would be material to the financial statements.
NOTE 4 — RECEIVABLES
Receivables as of September 30, 2009 for the Village's individual major funds, non -major
funds and fiduciary fund in the aggregate, including the allowances for uncollectible
accounts, are as follows:
Customers Billed
Contributions
Property Taxes
Intergovernmental
Other
Due from Other Governments
Gross Receivables
Less Allowance for Uncollectibles
Net Total Receivables
Special Capital
General Revenue Improvements
Storm- Sanitary Solid Pension
water Sewer Waste Trust Fund Total
$ $ $ -- $ 94,342 $ -- $ 478,215 $ -- $ 572,557
-- -- -- 113,737 113,737
380,366 380,366
250,048 95,041 23,631 156,510 525,230
607,491 -- -- -- 607,491
-- 1,000,000 1,000,000
1,237,905 1,095,041 23,631 94,342 156,510 478,215 113,737 3,199,3 81
-- -- -- -- (21,640) (21,640)
$ 1,237,905 $ 1,095,041 $ 23,631 $ 94,342 $ 156,510 $ 456,575 $ 113,737 $ 3,177,741
NOTE 5 — PROPERTY TAXES
Property values are assessed on a county -wide basis by the Miami -Dade County Property
Appraiser as of January 1, the lien date, of each year and are due the following November 1.
Taxable value of property within the Village is certified by the Property Appraiser and the
Village levies a tax millage rate upon the taxable value, which will provide revenue
required for the fiscal year beginning October 1. The millage rate assessed by the Village
for the year ended September 30, 2009 was 3.200.
30
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FISCAL YEAR ENDED SEPTEMBER 30, 2009
NOTE 5 — PROPERTY TAXES (CONTINUED)
Property taxes levied each November 1, by the Village and all other taxing authorities
within the County, are centrally billed and collected by Miami -Dade County, with
remittances to the Village of their proportionate share of collected taxes. Taxes for the
fiscal year beginning October 1 are billed in the month of November, subject to a 1% per
month discount for the period November through February, and are due no later than
March 31. On April 1, unpaid amounts become delinquent with interest and penalties
added thereafter. Beginning June 1, tax certificates representing delinquent taxes with
interest and penalties are sold by Miami -Dade County, with remittance to the Village for its
share of those receipts. At September 30, 2009, there were no material delinquent taxes.
NOTE 6 — INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS
The composition of interfund balances as of September 30, 2009 is as follows:
Due from/to other funds:
Receivable Fund Payable Fund
General
Capital Improvement
Stormwater
Amount
Special Revenue $ 2,667,788
Sanitary Sewer 769,227
Solid Waste 798,137
General 11,333
General 88,744
$ 4,335,229
The outstanding balances between funds result mainly from the time lag between the dates
that (1) interfund goods and services are provided or reimbursable expenditures occur, (2)
transactions are recorded in the accounting system, and (3) payments between funds are
made.
Interfund transfers:
Transfers In
General Capital Sanitary
Fund Improvement Sewer Total
Transfers Out:
General fund $ $ 3,236,194 $ 164,502 $ 3,400,696
Transfers are used to move unrestricted general fund revenues to finance various capital
projects in accordance with budgetary authorizations.
31
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FISCAL YEAR ENDED SEPTEMBER 30, 2009
NOTE 7 — CAPITAL ASSETS
Capital asset activity for the year ended September 30, 2009 was as follows:
Beginning
Balance Increases Decreases
Governmental Activities
Capital Assets, Not Being Depreciated
Land
Construction in progress
Total Capital Assets, Not Being Depreciated
Capital Assets, Being Depreciated
Buildings
Improvements other than buildings
Furniture, fixtures and equipment
Total Capital Assets, Being Depreciated
Less accumulated depreciation for:
Buildings
Improvements other than buildings
Furniture, fixtures and equipment
Total Accumulated Depreciation
Total Capital Assets, Being Depreciated, Net
Governmental Activities Capital Assets, Net
Business -type Activities
Capital Assets, Not Being Depreciated
Construction in progress
Total Capital Assets, Not Being Depreciated
Capital Assets, Being Depreciated
Stormwater utility system
Total Capital Assets, Being Depreciated
Less accumulated depreciation for:
Stormwater utility system
Total Accumulated Depreciation
Total Capital Assets, Being Depreciated, Net
Business -type Activities Capital Assets, Net
Ending
Balance
$ 21,833,837 $ -- $
12,851,512 424,748
34,685,349 424,748
24,225,708
16,142,508
5,647,777
46,015,993
(2,897,141)
(3,656,443)
(3,806,293)
(10,359,877)
35,656,116
$ 70,341,465
-- $ 21,833,837
-- 13,276,260
341,094
319,756
396,173 (132,447)
1,057,023 (132,447)
(496,476)
(370,503)
(320,441)
(1,187,420)
(130,397)
$ 294,351
35,110,097
24,566,802
16,462,264
5,911,503
46,940,569
-- (3,393,617)
-- (4,026,946)
125,000 (4,001,734)
125000 (11,422,297)
(7,447) 35,518,272
$ (7,447) $ 70,628,369
$ 8,662,321 $ 7,165,773 $ -- $ 15,828,094
8,662,321 7,165,773 -- 15,828,094
10,056,660
10,056,660
(3,004,729)
(3,004,729)
7,051,931
$ 15,714,252
(273,919)
(273,919)
(273,919)
$ 6,891,854 $
10,056,660
10,056,660
(3,278,648)
(3,278,648)
6,778,012
$ 22,606,106
32
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FISCAL YEAR ENDED SEPTEMBER 30, 2009
NOTE 7 — CAPITAL ASSETS (CONTINUED)
Depreciation expense was charged as functions/programs of the primary government as
follows:
Governmental Activities
General government $ 461,054
Police 146,941
Fire 218,954
Public works
Building, zoning and planning
Parks 360,471
Total Depreciation Expense - Governmental Activities $ 1,187,420
Business -type Activities
Stormwater $ 273,919
NOTE 8 — SHORT-TERM DEBT INSTRUMENTS
On August 15, 2008, the Village issued a short-term water and sewer revenue note in an
aggregate principal amount not to exceed $5,000,000 for the purpose of financing a portion
of the costs of sewer system improvements within the Village, financing architectural,
engineering, environmental, legal, and other planning costs related thereto, and paying costs
of issuance of the note. The note was secured by a covenant to budget and appropriate from
legally available non -ad valorem revenues of the Village and was expected to be repaid over
one year. Interest accrued on the outstanding principal balance from its date of issuance
payable on February 12, 2009 and upon maturity, August 12, 2009, at an interest rate equal
to 2.69% per annum. The note was paid off during the fiscal year ended September 30,
2009. Total interest paid for the note was $136,368.
33
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FISCAL YEAR ENDED SEPTEMBER 30, 2009
NOTE 9 - LONG-TERM DEBT
The following is a summary of changes in long-term liabilities of the Village for
governmental activities for the year ended September 30, 2009:
Governmental Activities
Bonds Payable
Land acquisition and capital improvement
revenue bonds, Series 1999
Land acquisition and capital improvement
revenue bonds, Series 2000
Capital improvement bonds, Series 2002
Land acquisition and capital improvement
revenue bonds, Series 2004
Transportation tax revenue bonds,
Series 2005
Transportation tax revenue bonds,
Series 2006
Total Bonds Payable
Other Liabilities
Capital leases
Compensated absences
Total Other Liabilities
Governmental Activities Long -Term Liabilities
Beginning
Balance Additions Reductions
Ending Due Within
Balance One Year
$ 7,585,000 $
8,360,000
8,370,265
2,730,071
3,404,044
3,642,087
34,091,467
213,793
2,287,753
2,501,546
$ 36,593,013
299,839
299,839
$ 299,839
$ (475,000)
(465,000)
(414,676)
(286,476)
(197,361)
(212,794)
(2,051,307)
(107,827)
(332,837)
(440,664)
$ (2,491,971)
LAND ACQUISITION AND CAPITAL IMPROVEMENT REVENUE BONDS
$ 7,110,000
7,895,000
7,955,589
2,443,595
3,206,683
3,429,293
32,040,160
$ 500,000
490,000
467,860
297,607
204,001
221,325
2,180,793
105,966 105,966
2,254,755 225,476
2,360,721 331,442
$ 34,400,881 $ 2,512,235
On July 23, 1999, the Village issued $10,000,000 Land Acquisition and Capital Improvement
Revenue Bonds, Series 1999, the proceeds of which were used for the acquisition of property
and financing of the construction of the Civic Center project. The bonds mature on July 23,
2019 with final payment due on December 1, 2019. The Village has pledged non -ad valorem
revenues to secure payment of the principal and interest on the bonds. The bonds are due in
annual principal installments. Interest accrues at 4.715% per annum.
Debt service requirements to maturity are as follows:
Fiscal Year Ending September 30:
2010
2011
2012
2013
2014
2015-2019
2020
Principal Interest
Total
$ 500,000
525,000
550,000
580,000
610,000
3,530,000
815,000
$ 7,110,000
$ 323,449
299,285
273,942
247,302
219,247
624,266
19,214
$ 2,006,704
$ 823,449
824,285
823,942
827,302
829,247
4,154,266
834,214
$ 9,116,704
34
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FISCAL YEAR ENDED SEPTEMBER 30, 2009
NOTE 9 - LONG-TERM DEBT (CONTINUED)
CAPITAL IMPROVEMENT REVENUE BONDS
On July 11, 2000, the Village issued a second series of $10,000,000 Capital Improvement
Revenue Bonds, Series 2000, the proceeds of which were used for the acquisition of
property and financing of the construction of the Civic Center project. The bonds mature on
July 11, 2020. The Village has pledged non -ad valorem revenues to secure payment of the
principal and interest on the bonds. The bonds are due in annual principal installments.
Interest accrues at 5.24% per annum.
Debt service requirements to maturity are as follows:
Fiscal Year Ending September 30:
2010
2011
2012
2013
2014
2015-2019
2020
Principal
Interest
Total
$ 490,000
515,000
540,000
570,000
600,000
3,505,000
1,675,000
$ 7,895,000
$ 400,860
374,529
346,888
317,806
287,152
916,869
88,949
$ 2,733,053
$ 890,860
889,529
886,888
887,806
887,152
4,421,869
1,763,949
$ 10,628,053
On November 1, 2002, the Village issued Capital Improvement Revenue Bonds, Series
2002 for the purpose of financing a portion of the cost of construction and equipping of a
community center including a parking garage and swimming pool. The bonds mature on
November 1, 2022. The Village has pledged non -ad valorem revenues to secure payment of
the principal and interest on the bonds. Interest is due quarterly at a rate of 3.95% up to
November 1, 2012. From November 1, 2012 to maturity, the interest rate will become a
variable rate based on certain indices.
Debt service to maturity is as follows:
Fiscal Year Ending September 30:
2010
2011
2012
2013
2014
2015-2019
2020-2023
Principal Interest Total
$ 467,860
484,883
502,526
520,811
539,762
3,008,095
2,431,652
$ 7,955,589
$ 273,339
256,316
238,673
220,388
201,437
697,900
144,784
$ 2,032,837
$ 741,199
741,199
741,199
741,199
741,199
3,705,995
2,576,436
$ 9,988,426
35
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FISCAL YEAR ENDED SEPTEMBER 30, 2009
NOTE 9 — LONG-TERM DEBT (CONTINUED)
LAND A CQUISITION AND CAPITAL IMPROVEMENT REVENUE BONDS
On December 12, 2004, the Village issued $2,800,000 of capital improvement and land
acquisition revenue bonds, Series 2004 for the purpose of completing the road construction
associated with the new administration, fire and community center buildings. The bonds
mature on November 1, 2022. The Village has pledged non -ad valorem revenues to secure
payment of the principal and interest on the bonds. The bonds are due in quarterly principal
installments. Interest accrues at 3.83% per annum.
Debt service requirements to maturity are as follows:
Principal Interest Total
Fiscal Year Ending September 30:
2010
2011
2012
2013
2014
2015-2019
2020-2023
TRANSPORTATION TAX REVENUE BONDS
$ 297,607
140,107
145,551
151,206
157,081
881,836
670,207
$ 2,443,595
$ 89,349
80,195
74,751
69,096
63,221
219,676
45,776
$ 642,064
$ 386,956
220,302
220,302
220,302
220,302
1,101,512
715,983
$ 3,085,659
On July 15, 2005, the Village issued Transportation Tax Revenue Bonds, Series 2005, for
the purpose of financing a portion of the costs of road improvements within the Village
(Crandon Boulevard Improvements — Phase II). The issuance was established similar to
bond anticipation notes where the principal amount is the lesser of $3,500,000 or the
advances made under the bond. Only the amount advanced becomes an obligation of the
Village. During the fiscal year ended September 30, 2006, the Village drew down the
remaining $3,450,000. The Village has pledged Transportation Tax Revenues to secure
payment of the principal and interest on the bonds. Total principal and interest remaining
on the bonds is $4,357,526. For the current year, debt service and pledged revenues were
$285,864 and $334,520, respectively. The bonds mature on July 1, 2025 and are due in
quarterly principal installments. Interest accrues at 4.09% per annum.
36
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FISCAL YEAR ENDED SEPTEMBER 30, 2009
NOTE 9 - LONG-TERM DEBT (CONTINUED)
TRANSPORTATION TAX REVENUE BONDS (CONTINUED)
Debt service requirements to maturity are as follows:
Principal
Fiscal Year Ending September 30:
2010
2011
2012
2013
2014
2015-2019
2020-2024
2025
ROAD IMPROVEMENT REVENUE BONDS
Interest Total
$ 204,001
212,474
169,602
160,687
165,667
734,389
1,103,143
456,720
$ 3,206,683
$ 130,084
121,612
113,313
105,161
100,191-
391,854
177,036
11,592
$ 1,150,843
$ 334,085
334,086
282,915
265,848
265,858
1,126,243
1,280,179
468,312
$ 4,357,526
On December 14, 2006, the Village issued Road Improvement Revenue Bonds, Series
2006, for the purpose of financing a portion of the costs of road improvements within the
Village (Crandon Boulevard Improvements - Phase III), financing architectural,
engineering, environmental, legal, and other planning costs. The bonds mature on
December 1, 2021. The Village has pledged toll revenues to secure payment of the
principal and interest on the bonds. Total principal and interest remaining on the bonds is
$4,363,342. For the current year, debt service and pledged revenues were $357,125 and
$365,000, respectively. The bonds are due in quarterly principal installments. Interest
accrues at 4.05% per annum.
Debt service requirements to maturity are as follows:
Fiscal Year Ending September 30:
2010
2011
2012
2013
2014
2015-2019
2020-2021
Principal Interest Total
$ 221,325
230,425
239,900
249,765
260,035
1,469,630
758,213
$ 3,429,293
$ 135,800
126,700
117,224
107,360
97,090
315,995
33,880
$ 934,049
$ 357,125
357,125
357,124
357,125
357,125
1,785,625
792,093
$ 4,363,342
37
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FISCAL YEAR ENDED SEPTEMBER 30, 2009
NOTE 9 — LONG-TERM DEBT (CONTINUED)
CAPITAL LEASES
On June 16, 2003, the Village entered into a Master Lease agreement, with a local financial
institution as lessee for financing the acquisition of Village vehicles and equipment for the
Fire -Rescue Department with a fair value of $880,963. The amount of the lease obligation
is $105,966 and final payment is due on November 15, 2009. Lease payments are due
annually. Interest accrues at 2.994% per annum.
On January 10, 2005, the Village entered into a Master Lease agreement for financing the
acquisition of a Village vehicle and equipment for the Police Department with a fair value
of $23,744. The final payment was made on January 10, 2009.
The future minimum lease obligations and the net present value of the minimum lease
payments as of September 30, 2009 were as follows:
Fiscal Year Ending September 30:
2010
Total Minimum Lease Payments
Less Amount Representing Interest
Present Value of Minimum Lease Payments
$ 109,139
109,139
(3,173)
$ 105,966
The following is a summary of changes in long-term liabilities of the Village for business -
type activities for the year ended September 30, 2009:
Beginning Ending
Balance
Additions
Reductions Balance
Due
Within
One Year
Business -type Activities
Bonds and Loans Payable
Stormwater utility revenue bonds $ 5,200,000
Revolving loan 339,919
Revolving loan 2009
Total bonds and loans payable 5,539,919
Business -type Activities
Long -Term Liabilities
$
2,067,002
2,067,002
$ (365,000)
(19,580)
$ 4,835,000
320,339
-- 2,067,002
(384,580) 7,222,341
$ 385,000
20,085
36,542
441,627
$ 5,539,919 $ 2,067,002 $ (384,580) $ 7,222,341 $ 441,627
38
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FISCAL YEAR ENDED SEPTEMBER 30, 2009
NOTE 9 - LONG-TERM DEBT (CONTINUED)
STORMWATER UTILITY REVENUE BONDS
On January 26, 1999, the Village issued $7,200,000 Stormwater Utility Revenue Bonds,
Series 1999, the proceeds of which were used to pay the principal of the $7,200,000 Bond
Anticipation Notes, Series 1995. The bonds mature on January 26, 2019. The Village has
pledged stormwater utility fees and non -ad valorem revenues to secure payment of the
principal and interest on the bonds. The bonds are due in annual principal installments on
October 1st. Interest accrues at 4.13% per annum.
Debt service requirements to maturity are as follows:
Principal Interest Total
Fiscal Year Ending September 30:
2010
2011
2012
2013
2014
2015-2019
STATE REVOLVING FUND LOAN
$ 385,000
405,000
425,000
445,000
465,000
2,710,000
$ 4,835,000
$ 199,686
183,785
167,058
149,506
131,128
346,714
$ 1,177,877
$ 584,686
588,785
592,058
594,506
596,128
3,056,714
$ 6,012,877
In June 1996, the Village entered into a loan agreement in the amount of $887,983 for the
financing of the planning and engineering of the proposed sanitary sewer construction
project under a State Revolving Fund Loan. The proceeds were received in fiscal year
1998. The loan is payable in semi-annual payments over 20 years beginning on April 15,
2003 at an interest rate of 2.56% per annum. The loan matures on October 15, 2022.
Debt service requirements to maturity are as follows:
Fiscal Year Ending September 30:
2010
2011
2012
2013
2014
2015-2019
2020-2023
Principal
Interest Total
$ 20,085
20,602
21,133
21,677
22,236
120,991
93,615
$ 320,339
$ 8,050
7,532
7,001
6,457
5,898
20,597
4,854
$ 60,389
$ 28,135
28,134
28,134
28,134
28,134
141,588
98,469
$ 380,728
39
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FISCAL YEAR ENDED SEPTEMBER 30, 2009
NOTE 9 — LONG-TERM DEBT (CONTINUED)
2009 STATE REVOLVING FUND LOAN
In June 2009, the Village entered into a revolving loan agreement with the State of Florida
Department of Environmental Protection in an amount up to $5,150,000 for the financing
of the sanitary sewer construction project. Proceeds in the amount of $2,067,002 were
received during the 2009 fiscal year. The loan is payable in semi-annual payments over 20
years beginning on August 15, 2010 at an interest rate of 3.39% per annum. The loan
matures on February 15, 2030.
Debt service requirements to maturity are as follows:
Principal Interest Total
Fiscal Year Ending September 30:
2010
2011
2012
2013
2014
2015-2019
2020-2024
2025-2029
2030
NOTE 10 — COMMITMENTS AND CONTINGENCIES
LITIGATION
$ 36,542
74,953
77,516
80,166
82,906
459,035
543,052
642,447
70,385
$ 2,067,002
$ 35,036
68,203
65,640
62,990
60,250
256,744
172,727
73,332
1,193
$ 796,114
$ 71,578
143,156
143,156
143,156
143,156
715,779
715,779
715,779
71,578
$ 2,863,117
The Village is involved in several lawsuits incidental to its operations, the outcome of
which, in the opinion of management and legal counsel, would not have a material adverse
effect on the financial condition of the Village.
GRANTS CONTINGENCY
Federal and State programs in which the Village participates are subject to audit 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 financial
condition of the Village.
40
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FISCAL YEAR ENDED SEPTEMBER 30, 2009
NOTE 10 — COMMITMENTS AND CONTINGENCIES (CONTINUED)
CONSTRUCTION COMMITMENT
The Village has outstanding construction commitments of approximately $2.7 million for
its sanitary sewer project.
NOTE 11— DEFICIT FUND BALANCE
The Special Revenue Fund has a deficit fund balance of $1,501,382 which is being funded
from the General Fund and from revenues derived from an interlocal agreement with
Miami -Dade County over a period of approximately 12 years.
NOTE 12 — RESERVED FUND BALANCES
As of September 30, 2009, fund balances in the general fund have been reserved for the
following purposes. The Village, by its charter, cannot have any unreserved fund balance,
therefore, many of the reserves are_establishedto fund current operations, such as working
capital.
Emergencies $ 4,000,001
Working Capital 1,992,064
Compensated Absences 450,952
Building Inspections 566,173
Law Enforcement Seizures 308,813
Prepaids 250,693
Police Labor 90,000
Fire Grant Revenue (UASI) 50,722
Fire Rescue Transport Fees 287,913
Capital Improvement Plan 1,130,089
Playing Fields 416,403
Police/Admin. Bldg. Reserve 13,632
Fire Station Bldg. Reserve 13,632
Community Center Equip Resv. 50,000
Fire Vehicle Replacements 50,000
Master Plan Initiatives 1,873,764
Capital Lease 298,682
Roadway Improvements 175,000
Recreation Facilities 300,000
$ 12,318,533
41
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FISCAL YEAR ENDED SEPTEMBER 30, 2009
NOTE 13 — DEFINED CONTRIBUTION PLANS
The Village as a single -employer contributes to the Village of Key Biscayne Money
Purchase Plans, which are defined contribution plans created in accordance with Internal
Revenue Code Section 401(a). The plans are administered by a third party administrator.
Under one Plan, which is available to Village employees, the Village contributes 12% and
the employees contribute 6%. Under the second plan, which is available only to sworn or
certified police officers and firefighters, the Village contributes 12% and there is no
employee contribution. Beginning October 1, 1997, the police officers and firefighters,
which elected to participate in the defined benefit pension plan (see Note 14), were no
longer eligible to contribute to the 401(a) plan. Employer contributions for the fiscal year
ended September 30, 2009 were $490,917 while the employee contributions were $154,439.
Amendments to the Plan must be authorized by the Village Council.
NOTE 14 — DEFINED BENEFIT PENSION PLAN
PLAN DESCRIPTION
Effective October 1, 1997, the Village established a single -employer Public Employee
Retirement System (PERS) to provide pension benefits for its police officers and
firefighters. The PERS is considered to be part of the Village's financial reporting entity
and is included in the Village's financial reports as a pension trust fund. The Plan was
created under Village Ordinance 97-21. The latest available actuarial valuation is as of
October 1, 2008. The PERS does not issue a stand-alone financial report for the Plan.
Under this plan, all full-time police officers and firefighters employed by the Village are
eligible to participate. The monthly retirement benefit is equal to 3% of the average final
compensation for each year of service. The calculation for the average final compensation
is computed as one -twelfth of the average salary of the five highest years within the last ten
years of credited service. Credited service is determined by the total number of years
employed by the Village since August 1, 1993. Amendments to the Plan must be
authorized by the Village Council.
Members are vested after 5 years of service. Vested employees may retire at the earlier of
age 55 and the completion of five years of credited service or the age of 52 and the
completion of 25 years of credited service, or at age 50 with 5 years of service with the
benefit discounted 3% for each year under age 55.
Administrative costs of the plan are financed through investment earnings. Benefits and
refunds are recognized when due and payable in accordance with the terms of the plan.
Benefits and funds are recorded when paid.
42
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FISCAL YEAR ENDED SEPTEMBER 30, 2009
NOTE 14 — DEFINED BENEFIT PENSION PLAN (CONTINUED)
PLAN DESCRIPTION (CONTINUED)
At October 1, 2008 (date of the latest actuarial valuation), Plan membership consisted of the
following:
Retirees and Beneficiaries Currently Receiving Benefits and Terminated Employees
Entitled to Benefits but Not Yet Receiving Them 16
Current Employees:
Vested
Non -vested
Total
FUNDING POLICY
40
26
66
The Village's contribution rate is adjusted each year to an amount equal to the total pension
cost for the year, as determined by the most recent actuarial valuation, less the amount of
revenue received from the State of Florida pursuant to Chapters 175 and 185 of the Florida
Statutes. The Village's contribution rate was 10.51% of covered payroll for the year ended
September 30, 2009 which was determined by the October 1, 2007 actuarial valuation. The
participant contribution rate which is fixed by ordinance is 10.5%. This funding policy is
designed to limit the Village's exposure to contribute to the Plan. State contributions are
recognized as a revenue and expenditure in the general fund.
FUNDED STATUS AND FUNDING PROGRESS
The funded status of the plan as of October 1, 2008, the most recent actuarial valuation date,
is as follows:
Actuarial
Accrued UAAL
Actuarial Liability Unfunded As % of
Actual Value of (AAL) - AAL Funded Covered Covered
Valuation Assets Entry Age (UAAL) Ration Payroll Payroll
Date (a) (b) (b) - (a) (a) / (b) (c) (b - a) / c
10/1/08 $ 10,682,895 $ 16,049,481 $ 5,366,586 66.6% $ 6,365,246 84%
The schedule of funding progress, presented as required supplementary information (RSI)
following the notes to the financial statements, presents multiyear trend information about
whether the actuarial value of plan assets are increasing or decreasing over time relative to
the AAL for benefits.
43
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FISCAL YEAR ENDED SEPTEMBER 30, 2009
NOTE 14 — DEFINED BENEFIT PENSION PLAN (CONTINUED)
FUNDED STATUS AND FUNDING PROGRESS (CONTINUED)
Additional information as of the latest actuarial valuation follows:
Valuation Date
Contribution Rates:
Employer (and State)
Plan members
Actuarial Cost Method
Amortization Method
Remaining Amortization
Asset Valuation Method
Actuarial Assumptions:
Investment rate of return*
Projected salary increases*
Cost of living adjustments
10/1/08
15.32%
10.50%
Entry age normal
Level percent of pay, closed
30 years
5 year Smoothed Market value
8.5% per year compounded annually,
net of investment related expenses
9.4% to 3.5% variable
Not Applicable
*Includes inflation and other general increases at 4%
ANNUAL PENSION COST AND NET PENSION ASSET
The annual pension cost and net pension obligation (asset) for the current year was as
follows:
Annual Required Contribution
Interest on Net Pension Asset
Adjustment to Annual Required Contribution
Annual Pension Cost
Contributions Made
Decrease in Net Pension Asset
Net Pension Asset - Beginning of Year
Net Pension Asset - End of Year
$ 920,120
(10,329)
15,500
925,291
920,120
5,171
(121,512)
$ (116,341)
The annual required contribution for the current year was determined as part of the October 1,
2008 actuarial valuation using the entry age normal funding method.
44
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FISCAL YEAR ENDED SEPTEMBER 30, 2009
NOTE 14 — DEFINED BENEFIT PENSION PLAN (CONTINUED)
ANNUAL PENSION COST AND NET PENSION ASSET (CONTINUED)
Trend Information
Annual Percentage Net Pension
Fiscal Year Pension of APC Obligation
Ended Cost (APC) Contributed (Asset)
9/30/2007 $ 777,937 99.5% $ (125,650)
9/30/2008 843,538 99.5% (121,512)
9/30/2009 925,291 99.5% (116,341)
NOTE 15 — RISK MANAGEMENT
The Village is exposed to various risks of loss related to torts, theft of, damage to and
destruction of assets, errors and omissions and natural disasters for which the Village
carries commercial insurance. There was no reduction in insurance coverage from
coverages in the prior year and there were no settlements that exceeded insurance- coverage
for each of the past three years.
NOTE 16 — SUBSEQUENT EVENTS
NEW DEBT
On November 10, 2009, the Village issued Water and Sewer Revenue Bonds, Series 2009
in the amount of $1.2 million for the purpose of financing a portion of the costs of Water
and Sewer system Improvements within the Village.
TRANSFER
Under a conveyance process, the new water distribution systems installed within zones 2
and 3 of phase 1 which includes water mains, valves, fire hydrants, water services and water
meters has been transferred to the Miami -Dade Water & Sewer Department (MDWASD).
The total transfer approximated $9 million. Via this process, these facilities are now under
the ownership and are the responsibility of MDWASD.
Under a lease agreement process, the new sanitary sewer facilities within this zone/phase
which include sewer pipes, manholes, service laterals and a pumping station has been
turned over to MDWASD for their exclusive operation and maintenance. The facilities
remain the property of the Village for the 20 year term of the lease at a rate of $1 per year.
At the end of the lease term, all of these facilities become the property of MDWASD. This
arrangement has been set up since the sanitary sewer system cannot be conveyed until the
state revolving loan funds are paid off.
45
4
REQUIRED SUPPLEMENTARY INFORMATION
VILLAGE OF KEY BISCAYNE, FLORIDA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE
GENERAL FUND
FISCAL YEAR ENDED SEPTEMBER 30, 2009
Revenues
Property taxes
Utility taxes
Franchise fees
Licenses and permits
Intergovernmental
Charges for services
Grants
Interest
Other income_
Total Revenues
Expenditures
Current:
General government:
Elected officials
Village Clerk
Administration
Village Attorney
Total general government
Public safety:
Police
Fire
Total public safety
Public works
Building, zoning and planning
Parks and recreation
Debt service:
Principal
Interest and fiscal charges
Total Expenditures
Excess of Revenues over
Expenditures
Other Financing Uses
Appropriation of prior years'
reserves
Transfers out
Total Other Financing Uses
Net Change in Fund Balances
Bud
eted Amounts
Original
Final
Actual
Amounts
on a GAAP
Basis
Prior
Year
Reserves
Actual
Amounts
on a
Budgetary
Basis
Variance
with Final
Budget -
Positive
(Negative)
$ 19,561,571
2,584,530
1,065,000
1,075,200
937,638
2,140,150
7,500
351,550
27,723,139
474,688
452,826
1,079,553
483,000
2,490,067
5,368,708
6,160,922
11,529,630
1,977,947
1,687,548
3,466,300
1,762,012
1,573,445
24,486,949
3,236,190
(3,236,190)
(3,236,190)
$
$ 19,561,571
2,584,530
1,065,000
1,075,200
937,638
2,140,150
7,500
351,550
27,723,139
474,688
452,826
1,079,553
483,000
2,490,067
5,368,708
6,160,922
11,529,630
1,977,947
1,687,548
3,466,300
1,762,012
1,573,445
24,486,949
3,236,190
(3,236,190)
(3,236,190)
$
$ 19,769,976
2,834,749
992,997
1,188,297
1,154,946
2,354,365
157,912
39,366
28,492,608
390,688
335,070
910,241
656,420
2,292,419
5,315,573
6,432,219
11,747,792
1,924,339
1,542,531
3,753,273
1,641,152
1,170,051
24,071,557
4,421,051
(3,400,696)
(3,400,696)
$ 1,020,355
$
(173,420)
(173,420)
(271,297)
(271,297)
(286,973)
$ 19,769,976
2,834,749
992,997
1,188,297
1,154,946
2,354,365
157,912
39,366
28,492,608
390,688
335,070
910,241
483,000
2,118,999
5,315,573
6,160,922
11,476,495
1,924,339-
1,542,531
3,466,300
1,641,152
-- 1,170,051
(731,690) 23,339,867
731,690
(731,690)
(731,690)
$ --
5,152,741
(3,400,696)
(3,400,696)
$ 1,752,045
$ 208,405
250,219
(72,003)
113,097
217,308
214,215
150,412
39,366
(351,550)
769,469
84,000
117,756
169,312
371,068
53,135
53,135
53,608
145,017
120,860
403,394
1,147,082
1,916,551
(164,506)
(164,506)
$ 1,752,045
See note to budgetary comparison schedule.
46
VILLAGE OF KEY BISCAYNE, FLORIDA
REQUIRED SUPPLEMENTARY INFORMATION
NOTE TO BUDGETARY COMPARISON SCHEDULE
FISCAL YEAR ENDED SEPTEMBER 30, 2008
NOTE 1 — BUDGETS AND BUDGETARY ACCOUNTING
An annual appropriated budget is prepared for the general fund. The Village prepares a
budget for its special revenue fund and its capital projects fund, however, these budgets are
prepared as project budgets and not as annually appropriated budgets.
The Village follows these procedures in establishing the budgetary data reflected in the
financial statements:
(a) The Village Manager submits to the Council a proposed operating budget for the
ensuing fiscal year. The operating budget includes appropriations and the means of
financing them with an explanation regarding each expenditure that is not of a routine
nature.
(b) Public hearings are conducted to obtain taxpayer comments.
(c) Prior to October 1, the budget is legally enacted through passage of an ordinance.
(d) The Village Council, by motion, may make supplemental appropriations for the year up
to the amount of revenues in excess of those estimated. During fiscal year ended
September 30, 2009, there were no supplemental appropriations.
(e) Formal budgetary integration is employed as a management control device for the
general fund.
(f) The budget for the general fund is adopted on a basis consistent with generally accepted
accounting principles (GAAP), except for certain unbudgeted expenditures of prior year
reserves.
(g) The Village Manager is authorized to transfer part or all of an encumbered
appropriation balance within departments within a fund; however, any revisions that
alter the total appropriations of any department or fund must be approved by the Village
Council.
(h) There were no budget amendments during fiscal year ended September 30, 2009.
(i) The classification detail at which expenditures may not legally exceed appropriations is
at the department level.
47
VILLAGE OF KEY BISCAYNE, FLORIDA
REQUIRED SUPPLEMENTARY INFORMATION
PENSION TRUST FUND
SCHEDULE OF FUNDING PROGRESS
Actual
Valuation
Date
Actuarial
Value of
Assets
(a)
Actuarial
Accrued
Liability Unfunded
(AAL) - AAL
Entry Age (UAAL)
(b) (b) - (a)
Funded
Ration
(a) / (b)
Covered
Payroll
(c)
UAAL
As%of
Covered
Payroll
(b - a) / c
10/1/03
10/1/04
10/1/05
10/1/06
10/1/07
10/1/08
$ 3,309,812
4,400,914
5,703,772
$ 6,678,603
8,021,413
9,379,732
7,255,221 10,782,826
9,017,393 12,335,707
10,682, 895 16,049,481
$ 3,368,791 49.6%
3,620,499 54.9%
3,675,960 60.8%
3,527,605 67.3%
3,318,314 73.1%
5,366,586 66.6%
$ 4,278,629
4,960,542
5,320,018
5,355,088
5,740,991
6,365,246
78.7%
73.0%
69.1%
65.9%
58%
84%
48
VILLAGE OF KEY BISCAYNE, FLORIDA
REQUIRED SUPPLEMENTARY INFORMATION
PENSION TRUST FUND
SCHEDULE OF EMPLOYER CONTRIBUTIONS
Year Annual
Ended Required Percentage
September 30, Contribution Contributed
2004 $ 515,437 100%
2005 764,420 100%
2006 729,857 100%
2007 773,701 100%
2008 839,400 100%
2009 797,802 115%
49
STATISTICAL SECTION
STATISTICAL SECTION
This part of the Village of Key Biscayne's comprehensive annual financial report presents
detailed information as a context for understanding what the information in the financial
statements, note disclosures, and required supplementary information says about the Village's
overall financial health.
Contents Page
Financial Trends
These schedules contain trend information to help the reader understand how the 50-54
Village's financial performance and well-being have changed over time. These
schedules include:
Revenue Capacity
These schedules contain information to help the reader assess the Village's most 55-59
significant local revenue source, the property tax.
Debt Capacity
These schedules present information to help the reader assess the affordability of the 60-63
Village's current levels of outstanding debt and the Village's ability to issue
additional debt in the. future.
Demographic and Economic Information
These schedules offer demographic and economic indicators to help the reader 64-66
understand the environment within which the Village's financial activities take place.
Operating Information
These schedules contain service and infrastructure data to help the reader understand 67-68
how the information in the Village's financial report relates to the services the Village
provides and the activities it performs.
Sources: Unless otherwise noted, the information in these schedules is derived from the
comprehensive annual financial reports for the relevant year.
VILLAGE OF KEY BISCAYNE, FLORIDA
NET ASSETS BY COMPONENT
LAST SEVEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
Fiscal Year
2003 2004 2005 2006 2007 2008 2009
Governmental activities
Invested in capital assets, net of related debt
Restricted
Unrestricted
Total governmental activities net assets
Business -type activities
Invested in capital assets, net of related debt
Unrestricted
Total business -type activities net assets
Total government
Invested in capital assets, net of related debt
Restricted
Unrestricted
Total government net assets
$ 23,889,001 $ 26,149,714 $ 26,284,600 $ 28,676,266 $ 31,422,358 $ 36,139,953 $ 38,482,243
171,680 283,180 326,826 359,899 261,813 284,639 308,813
4,161,688 2,809,659 4,302,680 4,926,634 8,453,390 10,924,001 15,055,000
28,222,369 29,242,553 30,914,106 33,962,799 40,137,561 47,348,593 53,846,056
2,024,755 1,768,078 1,931,844
1,388,975 1,254,664 1,281,141
3,413,730 3,022,742
25,913,756 27,917,792
171,680 283,180
5,550,663 4,064,323
$ 31,636,099 $ 32,265,295
2,326,089 2,505,881 10,174,333 15,3 83,765
778,320 432,133 (2,209,685) (346,721)
3,212,985 3,104,409 2,938,014 7,964,648 15,037,044
28,216,444 31,002,355 33,928,239 46,314,286 53,866,008
326,826 359,899 261,813 284,639 308,813
5,583,821 5,704,954 8,885,523 8,714,316 14,708,279
$ 34,127,091 $ 37,067,208 $ 43,075,575 $ 55,313,241 $ 68,883,100
Note: The Village implemented GASB Statement No. 34 for the fiscal year ended September 30, 2003.
50
VILLAGE OF KEY BISCAYNE, FLORIDA
CHANGES IN NET ASSETS
LAST SEVEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
Fiscal Year
Expenses
Governmental activities:
General government
Fire
Police
Building, zoning and planning
Public works
Parks and recreation
Interest on long-term debt
Total governmental activities
Business -type activities:
Stormwater system
Solid waste collection
Sanitary sewer
Total business -type activities
Total government expenses
Program revenues
Governmental activities:
Charges for services:
General government
Police
Fire
Parks and recreation
Building, zoning and planning
Operating grants and contributions
Capital grants and contributions
Total governmental activities program revenues
Business -type activities:
Charges for services:
Stormwater system
Solid waste collection
Capital grants and contributions:
Stormwater system
Sanitary sewer
Total business -type activities program revenues
Total program revenues
2003 2004 2005 2006
2007 2008
2009
$ 5,691,379 $ 3,614,636 $ 2,914,734
4,821,645 4,738,402 4,867,525
4,787,090 4,311,449 4,373,145
1,252,012 1,220,180 1,235,175
963,676 1,103,940 2,189,673
826,695 1,013,741 2,614,785
1,064,028 1,487,245 1,305,383
19,406,525 17,489,593 19,500,420
634,361 971,081
273,076 259,173
6,288 15,732
913,725 1,245,986
454,963
466,162
10,261
$ 4,252,037
4,947,149
4,275,617
1,547,042
4,004,651
2,849,434
1,413,272
$ 3,781,396 $ 3,213,273
5,257,789 6,399,665
4,651,660 5,272,383
1,447,968 1,529,272
1,589,444 2,046,776
3,077,624 3,633,233
1,505,253 1,436,481
23,289,202 21,311,134 23,531,083
720,158
501,417
9,993
693,135
571,246
9,454
931,386 1,231,568 1,273,835
$ 20,320,250 $ 18,735,579 $ 20,431,806
$ 1,034,247
110,215
5,805
29,752
117,705
99,830
421,085
1,818,639
531,164
313,492
$ 961,100
197,244
6,505
35,787
86,455
524,736
1,811,827
520,729
284,900
$ 1,257,895
212,121
7,120
1,287,806
142,550
650,679
517,643
911,500
619,823
9,046
$ 2,868,728
6,523,753
5,258,243
1,540,507
1,914,119
4,090,555
1,447,387
23,643,292
779,856
618,155
144,922
1,540,369 1,542,933
$ 24,520,770 $ 22,584,969 $ 25,071,452
$ 1,466,186
40,719
50,392
1,512,923
167,802
3,559,753
$ 1,389,163
21,385
40,144
1,416,707
193,391
799,493
4,075,814 6,797,775 3,860,283
518,812
533,632
517,365
531,967
509,571
520,650
$ 1,320,004
14,203
146,588
1,620,787
133,104
251,180
3,485,866
499,101
530,803
$ 25,186,225
$ 237,315
38,181
136,433
1,957,747
1,173,440
157,912
1,709,481
5,410,509
491,314
635,580
331,319
5,460,763 6,971,311
844,656 805,629 1,052,444 1,049,332 1,030,221 6,490,667 8,429,524
$ 2,663,295 $ 2,617,456 $ 5,128,258 $ 7,847,107 $ 4,890,504 $ 9,976,533 $ 13,840,033
51
(Continued)
VILLAGE OF KEY BISCAYNE, FLORIDA
CHANGES IN NET ASSETS
(Continued)
LAST SEVEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
Fiscal Year
Net (expense) revenue
Governmental activities
Business -type activities
Total net expense
General revenues
Governmental activities:
Taxes:
Property taxes
Utility taxes
Franchise fees
Communications services tax
Intergovernmental
Investment earnings
Miscellaneous
Transfers
Total governmental activities
Business -type activities:
Investment earnings
Transfers
Total business -type activities
Total general revenues
Change in net assets
Governmental activities
Business -type activities
Total change in net assets
2003 2004 2005 2006
2007 2008
2009
$ (17,587,886) $ (15,677,766) $ (15,424,606) $ (16,491,427) $ (17,450,851) $ (20,045,217) $ (18,232,783)
(69,069) (440,357) 121,058 (182,236) (243,614) 4,950,298 6,886,591
$ (17,656,955) $ (16,118,123) $ (15,303,548) $ (16,673,663) $ (17,694,465) $ (15,094,919) $ (11,346,192)
$ 11,317,161 $ 12,770,711
2,251,876 2,219,118
611,502 677,203
776,869
82,286
200,561
(9,737)
$ 13,360,251
1,488,002
705,810
746,400
821,883 978,304
110,562 255,611
126,607 281,657
(28,134) (28,135)
15,230,518 16,697,950 17,787,900
$ 14,830,238
1,549,601
1,088,929
797,054
996,092
306,339
(28,133)
19,540,120
$ 18,667,979 $ 20,051,239
1,467,392 1,534,379
1,113,194 1,064,666
763,801 1,226,423
1,000,265 2,265,243
641,115 346,531
(28,133)
23,625,613 26,460,347
(28,134)
$ 19,769,976
1,555,748
992,997
1,091,734
1,348,324
44,737
91,232
(164,502)
24,730,246
22,163 21,235 41,050 45,527 49,086 48,202 21,303
9,737 28,134 28,135 28,133 28,133 28,134 164,502
31,900 49,369 69,185 73,660 77,219 76,336 185,805
$ 15,262,418 $ 16,747,319 $ 17,857,085 $ 19,613,780 $ 23,702,832 $ 26,536,683 $ 24,916,051
$ (2,357,368) $ 1,020,184 $ 2,363,294 $ 3,048,693 $ 6,174,762 $ 6,415,130 $ 6,497,463
(37,169) (390,988) 190,243 (108,576) (166,395) 5,026,634 7,072,396
$ (2,394,537) $ 629,196 $ 2,553,537 $ 2,940,117 $ 6,008,367 $ 11,441,764 $ 13,569,859
Note: The Village implemented GASB Statement No. 34 for the fiscal year ended September 30, 2003.
52
VILLAGE OF KEY BISCAYNE, FLORIDA
FUND BALANCES OF GOVERNMENTAL FUNDS
LAST SEVEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
Fiscal Year
General fund
Reserved
Unreserved
Total general fund
All other governmental funds
Reserved
Unreserved, reported in:
Special revenue fund
Capital projects funds
Total all other governmental funds
Total governmental funds
2003 2004 2005 2006
2007
2008
2009
$ 2,967,382 $ 4,677,188 $ 5,754,277 $ 6,874,310 $ 9,875,416 $ 11,298,178
1,000,177 275,000
3,967,559 4,952,188 5,754,277 6,874,310
198,563
905,611
1,104,174
$ 5,071,733
513,862 (638,221) (1,496,749)
(489,979) 881,595 1,421,014
23,883 243,374 (75,735)
$ 4,976,071 $ 5,997,651 $ 6,798,575 $ 10,347,973
9,875,416 11,298,178
(2,482,196) (2,701,623)
2,954,753 4,783,222
472,557 2,081,599
Note: The Village implemented GASB Statement No. 34 for the fiscal year ended September 30, 2003.
$ 13,379,777
$ 12,318,533
12,318,533
(1,501,382)
6,875,361
5,373,979
$ 17,692,512
53
VILLAGE OF KEY BISCAYNE, FLORIDA
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
LAST SEVEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
Fiscal Year
Revenues
Ad valorem taxes
Franchise fees
Utility taxes
Licenses and permits
Intergovernmental revenue
Charges for services
Grants
Investment income
Miscellaneous
Total revenues
Expenditures
Current:
General government
Fire
Police
Public works
Building, planning and zoning
Parks and recreation
Capital outlay
Debt service:
Principal retirement
Interest and other fiscal charges
Total expenditures
Excess (deficiency) of revenues over expenditures
Other financing sources (uses)
Transfers in
Transfers out
Bonds issued
Proceeds from sale of capital assets
Capital lease proceeds
Total other financing sources (uses)
Net change in fund balances
Debt service as a percentage
of non -capital expenditures
2003 2004 2005 2006
2007 2008 2009
$ 11,317,161
611,502
2,251,876
970,001
999,391
327,723
99,830
82,286
399,124
17,058,894
$ 12,770,711 $ 13,360,251
677,203 1,452,210
2,219,118 1,488,002
961,100 1,040,130
1,031,805 1,495,947
325,651 1,867,362
-- 650,679
110,562 255,611
441,761 281,657
18,537,911 21,891,849
$ 14,830,238 $ 18,667,979
1,885,983 1,113,194
1,549,601 2,231,193
1,196,853 1,298,133
1,756,083 1,593,718
2,041,169 1,762,657
2,799,762 206,040
306,339 632,355
8,762
26,366,028 27,514,031
$ 20,051,239
1,064,666
1,534,379
1,240,290
3,189,251
1,994,396
251,180
338,528
8,003
29,671,932
$ 19,769,976
992,997
2,834,749
1,188,297
3,047,844
2,354,819
167,873
44,737
26,232
30,427,524
1,829,501 1,712,899 2,136,375 2,239,052 2,543,134 2,329,647 2,266,763
4,046,269 4,462,601 4,749,407 5,117,176 5,122,699 5,744,775 6,407,770
4,305,474 4,113,946 4,605,148 4,388,362 4,590,962 4,863,765 5,116,158
963,247 1,098,250 2,183,774 4,002,609 1,587,460 1,720,689 1,914,119
1,245,119 1,212,290 1,238,376 1,544,696 1,455,193 1,513,019 1,540,507
782,065 952,261 2,193,633 2,634,887 2,830,020 3,367,638 3,730,084
5,108,330 10,664,348 4,527,998 6,432,271 6,830,844 4,743,796 1,537,930
1,415,000 1,583,924 1,161,298 1,214,646 1,418,401 1,679,991 2,051,307
1,064,028 1,135,3 84 1,300,596 1,413,272 1,556,396 1,444,576 1,450,649
20,759,033 26,935,903 24,096,605 28,986,971 27,935,109 27,407,896 26,015,287
(3,700,139)
938,652
(948,389)
1,657,090
1,657,090
(8,397,992)
819,251
(847,385)
8,330,462
8,330,462
(2,204,756)
1,245,653
(1,273,788)
2,850,000
2,850,000
404,471
3,304,443 16,632,790 6,076,336
(2,620,943)
1,731,583
(1,759,716)
3,450,000
3,450,000
6,871,867
(421,078)
6,697,854
(6,725,988)
4,000,000
4,000,000
7,971,866
2,264,036 4,412,237
4,533,094 3,236,194
(4,561,228) (3,400,696)
65,000
(28,134) (99,502)
(395,696) $ 8,234,798 $ 3,871,580 $ 4,250,924 $ 7,550,788 $ 2,235,902 $ 4,312,735
15.84% 16.71%
12.58%
Note: The Village implemented GASB Statement No. 34 for the fiscal year ended September 30, 2003.
11.65%
14.10%
13.59% 14.27%
54
VILLAGE OF KEY BISCAY�TE, FLORIDA
GENERAL GOVERNMENTAL TAX REVENUES BY SOURCE
LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
Fiscal Ad Valorem Franchise
Year Taxes Taxes
Utility
Taxes
Inter-
governmental*
Communications
Services Tax**
Total
2000 $ 7,799,633 $ 729,998
2001 8,737,608 738,513
2002 9,569,030 639,072
2003 11,317,161 611,502
2004 12,770,711 677,203
2005 13,360,125 705,810
2006 14,830,238 1,088,929
2007 18,667,979 1,113,194
2008 20,051,239 1,064,666
2009 19,769,976 992,997
$ 1,723,902
1,772,208
2,258,931
2,251,876
2,219,118
2,234,402
1,549,601
1,467,392
610,371
1,555,748
$ 889,704
930,169
971,136
999,391
1,031,805
1,140,599
1,756,083
1,593,718
3,189,251
3,047,844
$ $ 11,143,237
12,178,498
904,475 14,342,644
825,739 16,005,669
770,637 17,469,474
746,400 18,187,336
797,054 20,021,905
763,801 23,606,084
924,008 25,839,535
1,091,734 26,458,299
Source: Village of Key Biscayne Finance Department.
*Includes half -cent sales tax and state revenue sharing.
**Communications services tax became effective October 1, 2001, replacing utility taxes and franchise fees on
telephone and cable TV.
55
VILLAGE OF KEY BISCAYNE, FLORIDA
NET ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY
LAST TEN FISCAL YEARS
Fiscal Year
Ended
September 30,
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
Real Property
Residential
Property
$ 2,394,282,542
2,618,160,883
3,128,872,469
3,506,812,044
3,713,841,630
4,115,175,292
5,421,393,923
6,173,257,097
6,040,318,378
5,597,851,704
Commercial
Property
$ 75,832,533
82,923,284
99,098,715
111,068,946
117,626,058
130,346,736
166,638,240
294,540,559
326,676,816
302,747,017
Personal
Property
$ 28,934,086
30,749,478
31,948,797
43,233,556
43,867,688
41,852,920
47,020,078
46,315,146
38,432,567
35,617,296
Total Net
Assessed
Value
$ 2,499,049,161
2,731,833,645
3,259,919,981
3,661,114,546
3,875,335,376
4,287,374,948
5,635,052,241
6,514,112,802
6,405,427,760
5,936,216,017
Total
Direct
Tax
Rate
3.606
3.606
3.606
3.606
3.606
3.606
3.606
3.450
3.200
3.200
Note: Property in the Village is reassessed each year. Property is assessed at actual value, therefore,
the assessed values are equal to actual value. Tax rates are per $1,000 of assessed value.
Source: Miami -Dade County Property Appraiser's Office.
56
VILLAGE OF KEY BISCAYNE, FLORIDA
PROPERTY TAX RATES - DIRECT AND OVERLAPPING GOVERNMENTS
LAST TEN FISCAL YEARS
Village of Key Biscayne Overlapping Rates (1)
Miami -Dade County Miami -Dade Schools Florida South Total
Debt Total
Fiscal Tax Roll General Debt Total Operating Service County
Year Year Operations Service Village Millage Millage Millage
2000 1999 3.606
2001 2000 3.606
2002 2001 3.606
2003 2002 3.606
2004 2003 3.606
2005 2004 3.606
2006 2005 3.606
2007 2006 3.450
2008 2007 3.200
2009 2008 3.200
3.606
3.606
3.606
3.606
3.606
3.606
3.606
3.450
3.200
3.200
Debt Total Inland Florida Direct and
Operating Service School Navigation Water Overlapping
Millage Millage Millage District Management Other Rates
5.809 0.816 6.625 8.654 0.990 9.644 0.044 0.597 0.421 20.937
5.751 0.652 6.403 8.702 0.915 9.617 0.041 0.597 0.451 20.715
5.713 0.552 6.265 8.528 0.848 9.376 0.039 0.697 0.451 20.434
5.889 0.390 6.279 8.482 0.770 9.252 0.039 0.697 0.451 20.324
5.969 0.285 6.254 8.418 0.682 9.100 0.039 0.597 1.086 20.682
5.935 0.285 6.220 8.090 0.597 8.687 0.039 0.597 1.030 20.179
5.835 0.285 6.120 7.947 0.491 8.438 0.039 0.597 1.014 19.814
5.615 0.285 5.900 7.691 0.414 8.105 0.039 0.597 1.008 19.099
5.220 0.285 5.505 7.533 0.264 7.797 0.035 0.535 0.511 17.582
4.838 0.285 5.123 7.698 0.297 7.995 0.035 0.535 0.972 17.860
Note: All millage rates are based on $1 for every $1,000 of assessed value.
Sources: Village of Key Biscayne Finance Department and Miami -Dade County Property Appraiser's Office.
(1) Overlapping rates are those of local and county governments that apply to property owners within the Village of Key Biscayne. Not all overlapping
rates apply to all Village of Key Biscayne property owners (i.e. the rates for special districts apply only to the proportion of the government's property
owners whose property is located within the geographic boundaries of the special district).
57
VILLAGE OF KEY BISCAYNE, FLORIDA
PRINCIPAL PROPERTY TAXPAYERS
CURRENT YEAR AND NINE YEARS AGO
2009
Taxpayer
Net
Assessed
Value
Percent of
Total
Village Net
Assessed
Rank Value
2000
Taxpayer
Net
Assessed
Value
Percent of
Total
Village Net
Assessed
Rank Value
SBR Fortune Associates
Galleria if Key Biscayne Inc.
Key Biscayne Properties LLC
Red Dragon's Sands LTD
Atlantic USA Inc.
United Real Estate Ventures Inc.
260 Cape FLA LLC
Tesaurus Holdings Inc.
Ocean Club Community Assoc.
500 Bay Lane LLC
$ 44,568,400
19,300,000
15,134,130
14,568,368
13,229,323
13,010,965
12,995,950
12,851,673
12,500,000
12,211,803
$ 170,370,612
1 0.75%
2 0.33%
3 0.25%
4 0.25%
5 0.22%
6 0.22%
7 0.22%
8 0.22%
9 0.21%
10 0.21%
2.87%
Ocean Club Key Biscayne
Sonesta Beach Hotel
GB Hotel Partners LTD
Grand Bay Tower Association
Key Biscayne Shopping Center
Galleria of Key Biscayne
PITT, Inc
Red Dragon's Sands, LTD
Fininvest Investment, et al (Key Colony)
Caroline T. Perkins
Source: Tax roll provided by Miami -Dade County Property Appraisers Office.
$ 39,590,009
28,700,000
23,341,830
12,855,305
8,672,526
7,369,463
5,251,313
4,977,558
4,193,744
3,547,661
$ 13 8,499,409
1 1.80%
2 1.30%
3 1.06%
4 0.58%
5 0.39%
6 0.33%
7 0.24%
8 0.23%
9 0.19%
10 0.16%
6.28%
58
VILLAGE OF KEY BISCAYNE, FLORIDA
PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
Total Taxes
Fiscal Year Levied for
Ended Fiscal
September 30, Year
2000 $ 8,050,243
2001 9,011,571
2002 9,850,992
2003 11,755,271
2004 13,201,979
2005 13,974,460
2006 15,461,356
2007 19,423,659
2008 19,802,903
2009 19,561,571
Collected within
the Fiscal Year
of the Levy
Percent
Amount of Levy
$ 7,799,633
8,738,608
9,515,138
11,317,160
12,869,711
13,360,251
14,830,238
18,667,979
19,739,848
19,3 89,610
Collections in
Subsequent
Year's
96.89% $ 11,699
96.97% 13,108
96.59% 14,273
96.27% 16,976
97.48% 19,305
95.60% 20,040
95.92% 22,245
96.11% 28,002
99.68% 311,392
99.12% 380,366
Total Collections
to Date
Percent
Amount of Levy
$ 7,811,332
8,751,716
9,529,411
11,334,136
12,889,016
13,3 80,291
14,852,483
18,695,981
20,051,240
19,769,976
97.03%
97.12%
96.74%
96.42%
97.63%
95.75%
96.06%
96.25%
101.25%
101.07%
Source: Village of Key Biscayne Finance Department and Miami -Dade County Tax Collector's Office.
59
VILLAGE OF KEY BISCAYNE, FLORIDA
RATIOS OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
Governmental Activities
Fiscal Year General
Ended Obligation
September 30, Bonds
Revenue
Bonds
2000 $ $ 21,220,000 $
2001 30,120,000
2002 29,935,000
2003 29,271,000
2004 29,164,892
2005 30,850,606
2006 33,085,960
2007 31,695,102
2008 33,987,811
2009 32,040,160
Capital
Leases
691,744
798,598
615,347
415,341
213,793
105,966
Loans
Payable
5,000,000
Business -Type
Activities
Revenue
Bonds
$ 7,065,000
6,940,000
6,810,000
6,625,000
6,430,000
6,010,000
5,785,000
5,200,000
5,539,919
7,222,341
Total
$ 28,285,000
37,060,000
36,745,000
35,896,000
35,594,892
36,860,606
38,870,960
36,895,102
44,741,524
39,368,467
Note: Details regarding the Village's outstanding debt can be found in the notes to the financial statements.
Percent of
Personal Per
Income (2) Capita (1)
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
(1) See the Schedule of Demographic and Economic Statistics on page 61 for personal income and population data.
(2) Not Available
$ 2,742
3,592
3,562
3,479
3,450
3,573
3,768
3,576
4,258
3,441
60
VILLAGE OF KEY BISCAYNE, FLORIDA
RATIOS OF GENERAL BONDED DEBT OUTSTANDING
LAST TEN FISCAL YEARS
The Village does not have general obligation debt.
61
VILLAGE OF KEY BISCAYNE, FLORIDA
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
SEPTEMBER 30, 2009
2009
Government Unit
Direct:
Village of Key Biscayne
Percentage Amount
Net Applicable to Applicable to
Debt the Village of the Village of
Outstanding Key Biscayne (1) Key Biscayne
$ 32,040,160 100.00% $ 32,040,160
Overlapping debt:
Miami -Dade County 523;596,000 0.0285% 149,225
Miami -Dade County School Board 560,574,000 0.0297% 166,490
Subtotal, Overlapping Debt
Village of Key Biscayne Direct Debt
315,715
32,040,160
Total Direct and Overlapping Debt $ 32,355,875
Sources: Data provided by the Miami -Dade County Finance Department and the Miami -Dade
County School Board.
Note: Overlapping governments are those that coincide, at least in part, with the geographic
boundaries of the Village. This schedule estimates the portion of the outstanding debt of those
overlapping governments that is borne by the residents and businesses of the Village of Key
Biscayne. This process recognizes that, when considering the Village's ability to issue and
repay long-term debt, the entire debt burden borne by the residents and businesses should be
taken into account. However, this does not imply that every taxpayer is a resident, and
therefore responsible for repaying the debt, of each overlapping government.
(1) For debt repaid with property taxes, the percentage of overlapping debt applicable is
estimated using taxable assessed property values. Value that is within the Village's boundaries
and dividing it by the County's and School Board's total taxable assessed value. This approach
was also used for the other debt.
62
VILLAGE OF KEY BISCAYNE, FLORIDA
PLEDGED REVENUE COVERAGE
LAST TEN FISCAL YEARS
Fiscal Year Non -
Ended Ad Valorem Debt Service
September 30, Revenues Principal Interest Coverage
2000 $ 5,324,756 $ 935,000 $ 595,767 3.48
2001 5,777,408 975,000 631,875 3.60
2002 5,426,424 1,015,000 1,420,845 2.23
2003 5,315,452 1,415,000 590,737 2.65
2004 5,305,171 1,583,924 1,107,696 1.97
2005 7,879,761 1,161,298 1,300,596 3.20
2006 10,433,952 1,350,001 1,351,729 3.86
2007 7,924,921 1,283,285 1,302,200 3.07
2008 9,620,693 1,679,991 1,444,576 3.08
2009 10,657,548 2,051,307 1,450,649 3.04
Source: Village of Key Biscayne Finance Department
63
VILLAGE OF KEY BISCAYNE, FLORIDA
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN FISCAL YEARS
Year
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
Population (1)
10,317
10,317
10,317
10,317
10,317
10,317
10,317
10,317
10,507
11,411
Personal
Income
(Amounts
Expressed in
Thousands) (2)
$
Per Capita
Personal
Income (3)
$ 86,599
86,599
86,599
86,599
86,599
89,400
89,400
89,400
86,599
86,599
Unemployment
Rate (4)
5.6%
5.7%
7.4%
7.3%
5.0%
3.9%
3.8%
3.8%
3.1%
3.0%
Sources:
(1) United States Census Bureau, 2000 Census data. Prior to 2000, data not available.
(2) Information not available.
(3) Years 2000-2004, U.S. Census 2000, Year 2005 City Data.com.
(4) -U.S. Department of Labor. Rates are for Miami -Dade County.
Note: Population is based on surveys conducted during the last quarter of the calendar year.
Personal income information is a total for the year. Unemployment rate information is an
adjusted yearly average.
64
VILLAGE OF KEY BISCAYNE, FLORIDA
PRINCIPAL EMPLOYERS
CURRENT YEAR AND NINE YEARS AGO
Employer
Ritz Carlton Key Biscayne
Winn Dixie Stores, Inc.
Village of Key Biscayne
All remaining employers are of an extremely small number
Total
2009
2,000
Percentage of Percentage of
Total Village Total Village
Employees (1) Rank Employment Employees Rank Employment
1,500 1 not known
250 3 not known
116 4 not known
1,866
Information not available
Notes: (1) All amounts are estimated for timely inclusion in report. Requests for information received no response.
65
VILLAGE OF KEY BISCAYNE, FLORIDA
FULL-TIME EQUIVALENT VILLAGE GOVERNMENT EMPLOYEES BY FUNCTION
LAST TEN FISCAL YEARS
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Number of employees:
General government 7 7 7 5 6 7 6 6 6 8
Public safety 72 72 72 74 76 79 79 79 78 81
Building, planning and zoning 16 16 16 12 12 13 13 14 13 13
Public works 3 3 3 5 5 5 5 4 4 4
Parks and recreation 4 3 4 4 4 6 6 7 7 10
Total number of employees 102 101 102 100 103 110 109 110 108 116
Source: Village of Key Biscayne Finance Department.
66
VILLAGE OF KEY BISCAYNE, FLORIDA
OPERATING INDICATORS BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
Function/Program 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Public safety:
Police:
Police personnel and officers 40 40 40 40 41 40 40 40 39 42
Police calls for service 21,127 20,659 21,127 20,660 19,004 16,510 13,006 35,412 36,190 37,002
Parking violations 789 639 789 639 628 682 801 996 776 824
Traffic violations 2,875 2,433 2,875 2,433 3,035 1,397 1,468 1,104 946 975
Fire:
Fire personnel 33 33 33 34 35 39 39 39 39 39
Fire incidents 1,051 485 1,050 1,114 1,148 1,403 1,103 998 1,006 1,012
Fire inspections performed 565 470 476 840 307 332 269 220 305 229
Planning and development:
Business permits issued 2,408 1,803 2,313 2,581 3,061 3,045 3,000 3,504 3,620 3,520
Occupational licenses issued 598 625 729 668 428 433 475 914 1,224 1,324
Culture and recreation:
Number of building users 1,250 1,600 1,400 1,400 1,300 1,325
Solid waste:
Residential accounts 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,299 1,298
Sources: Various Village Departments.
Note: Indicators are not available for the general government function.
67
VILLAGE OF KEY BISCAYNE, FLORIDA
CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
Function/Program 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
General government:
Number of general government buildings
Public safety:
Police:
Police stations
Patrol units
Fire:
Fire stations
1 1 1 1 1 1 1 1 1 1
1 1 1 1 1 1 1 1 1 1
3 3 3 3 3 3 3 3 3 3
1 1 1 1 1 1 1 1 1 1
Transportation:
Miles of streets 22.4 22.4 22.4 22.4 22.4 22.4 22.4 22.4 22.4 22.4
Number of street lights 250 250 300 300 300 300 300 300 300 300
Number of traffic signals 4 4 4 4 4 4 4 4 4 4
Culture and recreation:
Parks 3 3 3 3 3 3 3 3 3 3
Parks acreage 9 9 9 9 9 9 9 9 9 9
Community center 1 1 1 1 1
Swimming pools 1 1 1 1 1
Sources: Various Village Departments.
68
,.•4{
COMPLIANCE SECTION
MARCUM
RACH LI N
ACCOUNTANTS A ADVISORS
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, Village Council and Village Manager
Village of Key Biscayne, Florida
We have audited the financial statements of the governmental activities, the business -type
activities, each major fund, and the aggregate remaining fund information of the Village of Key
Biscayne, Florida (the Village) as of and for the fiscal year ended September 30, 2009, and have
issued our report thereon dated April 21, 2010. 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.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered the Village's internal control over financial
reporting as a basis for designing our auditing procedures 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 over financial reporting. Accordingly, we do not
express an opinion on the effectiveness of the Village's internal control over financial reporting.
A control deficiency 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
misstatements on a timely basis. A significant deficiency is a control deficiency, or combination
of control deficiencies, that adversely affects the Village's ability to initiate, authorize, record,
process, or report financial data reliably in accordance with generally accepted accounting
principles such that there is more than a remote likelihood that a misstatement of the Village's
financial statements that is more than inconsequential will not be prevented or detected by the
Village's internal control.
A material weakness is a significant deficiency, or combination of significant deficiencies, that
results in more than a remote likelihood that a material misstatement of the financial statements
will not be prevented or detected by the Village's internal control.
69
MARCUM GROUP
MEMBER
MarcumRachlin a Division of Marcum LLP • marcumrachlin.com
One Southeast Third Avenue • Tenth Floor • Miami, Florida 33131 • Phone 305.377.4228 • Fax 305.377.8331
NEW YORK • NEW JERSEY • CONNECTICUT • PENNSYLVANIA • FLORIDA • GRAND CAYMAN
Our consideration of internal control over financial reporting was for the limited purpose
described in the first paragraph of this section and would not necessarily identify all deficiencies
in internal control that might be significant deficiencies or material weaknesses. We did not
identify any deficiencies in internal control over financial reporting that we consider to be
material weaknesses, as defined above.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Village of Key Biscayne's financial
statements are free of material misstatement, we performed tests of its compliance with certain
provisions of laws, regulations, contracts and grant agreements, noncompliance with which could
have a direct and material effect on the determination of financial statement amounts. However,
providing an opinion on compliance with those provisions was not an objective of our audit and,
accordingly, we do not express such an opinion. The results of our tests disclosed no instances of
noncompliance or other matters that are required to be reported under Government Auditing
Standards.
This report is intended solely for the information and use of the Mayor, Village Council, Village
Manager and regulatory agencies, and is not intended to be and should not be used by anyone
other than these specified parties.
1-14(ar,khcRa�u�;c
a division of Marcum LLP
Miami, Florida
April 21, 2010
70
MARCUM
RACH LI N
ACCOUNTANTS • ADVISORS
A division of Marcum LLP
MARCUM
RACH LI N
ACCOUNTANTS • ADVISORS
Management Letter in Accordance with the Rules of the
Auditor General of the State of Florida
Honorable Mayor, Village Council and Village Manager
Village of Key Biscayne, Florida
We have audited the financial statements of the Village of Key Biscayne, Florida (the Village) as
of and for the fiscal year ended September 30, 2009, and have issued our report thereon dated
April 21, 2010.
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 OMB Circular A-133,
Audits of States, Local Governments, and Non -Profit Organizations. We have issued our
Independent Auditors' Report on Internal Control over Financial Reporting and on Compliance
and Other Matters based on an audit of financial statements, Independent Auditor's Report on
Compliance With Requirements Applicable to Each Major Program and on Internal Control Over
Compliance in Accordance With OMB Circular A-133 and Schedule of Findings and Questioned
Costs. Disclosures in those reports and schedule, which are dated April 21, 2010, should be
considered in conjunction with this management letter.
Additionally, our audit was conducted in accordance with the provisions of Chapter 10.550,
Rules of the Auditor General, which governs the conduct of local governmental entity audits
performed in the State of Florida. This letter includes the following information, which is not
included in the aforementioned auditor's reports or schedule:
■ 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 significant findings and recommendations
made in the preceding annual financial audit report. Corrective actions have been taken to
address significant findings and recommendations made in the preceding annual financial
audit report.
• Section 10.554(1)(i)2., Rules of the Auditor General, requires our audit to include a review of
the provisions of Section 218.415, Florida Statutes, regarding the investment of public funds. In
connection with our audit, we determined that the Village complied with Section 218.415,
Florida Statutes.
71
MARCUM GROUP
MEMBER
MarcumRachlin a Division of Marcum LLP • marcumrachlin.com
One Southeast Third Avenue • Tenth Floor • Miami, Florida 33131 • Phone 305.377.4228 • Fax 305.377.8331
NEW YORK • NEW JERSEY • CONNECTICUT • PENNSYLVANIA • FLORIDA • GRAND CAYMAN
■ Section 10.554(1)(i)3., Rules of the Auditor General, requires that we address in the
management letter any recommendations to improve financial management. In connection
with our audit, we did not have any such recommendations.
■ Section 10.554(1)(i)4., Rules of the Auditor General, requires that we address violations of
laws, regulations, contracts or grant agreements, or abuse that have occurred, or are likely
to have occurred, that have an effect on the determination of financial statement amounts
that is less than material but more than inconsequential. In connection with our audit, we
did not have any such findings.
■ Section 10.554(1)(i)5., Rules of the Auditor General, provides that the auditor may, based
on professional judgment, report the following matters that have an inconsequential effect
on financial statements, considering both quantitative and qualitative factors: (1) violations
of provisions of contracts or grant agreements, fraud, illegal acts, or abuse, and (2) control
deficiencies that are not significant deficiencies. In connection with our audit, there were
no such findings.
• Section 10.554(1)(i)6., 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. Village of Key Biscayne was incorporated by the Laws of Florida, Act of 1955.
There are no component units related to the Village.
• Section 10.554(1)(i)7.a., Rules of the Auditor General, requires a statement be included as
to whether or not the local governmental entity has met one or more of the conditions
described in Section 218.503(1), Florida Statutes, and identification of the specific
condition(s) met. In connection with our audit, we determined that the Village did not meet
any of the conditions described in Section 218.503(1), Florida Statutes.
■ Section 10.554(1)(i)7.b., Rules of the Auditor General, requires that we determine whether
the annual financial report for the Village for the fiscal year ended September 30, 2009,
filed with the Florida Department of Financial Services pursuant to Section 218.32(1)(a),
Florida Statutes, is in agreement with the annual financial audit report for the fiscal year
ended September 30, 2009. In connection with our audit, we determined that these two
reports were in agreement.
• Pursuant to Sections 10.554(1)(i)7.c. and 10.556(7), Rules of the Auditor General, we
applied financial condition assessment procedures. It is management's responsibility to
monitor the Village of Key Biscayne's financial condition, and our financial condition
assessment was based in part on representations made by management and the review of
financial information provided by same.
72
W\RCUM
RACHLIN
ACCOUNTANTS ADVISORS
A division of Marcum LLP
Pursuant to Chapter 119, Florida Statutes, this management letter is a public record and its
distribution is not limited. Auditing standards generally accepted in the United States of America
require us to indicate that this letter is intended solely for the information and use of
management, and the Florida Auditor General, and is not intended to be and should not be used
by anyone other than these specified parties.
1-74la,za.),(Rad&A
a division of Marcum LLP
Miami, Florida
April 21, 2010
73
MARCUM
RACH LI N
ACCOUNTANTS • ADVISORS
A division of Marcum LLP
MARCUM
RACH LI N
ACCOUNTANTS A ADVISORS
Independent Auditors' Report on Compliance With Requirements Applicable to Each
Major Program and on Internal Control over Compliance in Accordance
With OMB Circular A-133
Honorable Mayor, Village Council and Village Manager
Village of Key Biscayne, Florida
Compliance
We have audited the compliance of the Village of Key Biscayne, Florida (the Village) with the
types of compliance requirements described in the U.S. Office of Management and Budget
(OMB) Circular A-133 Compliance Supplement that are applicable to its major federal awards
program for the fiscal year ended September 30, 2009. The Village's major federal awards
program is identified in the summary of auditor's results section of the accompanying schedule
of findings and questioned costs. Compliance with the requirements of laws, regulations,
contracts and grants applicable to each of its major federal programs is the responsibility of the
Village's management. Our responsibility is to express an opinion on the Village's compliance
based on our audit.
We conducted our audit of compliance in accordance with auditing standards generally accepted
in the United States of America; the standards applicable to financial audits contained in
Government Auditing Standards, issued by the Comptroller General of the United States; and
OMB Circular A-133, Audits of States, Local Governments, and Non -Profit Organizations.
Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain
reasonable assurance about whether noncompliance with the types of compliance requirements
referred to above that could have direct and material effect on a major federal program occurred.
An audit includes examining, on a test basis, evidence about the Village's compliance with those
requirements and performing such other procedures as we considered necessary in the
circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit
does not provide a legal determination on the Village's compliance with those requirements.
In our opinion, the Village complied, in all material aspects, with the requirements referred to
above that are applicable to its major federal program for the fiscal year ended September 30,
2009.
74
MARCUM GROUP
MEMBER
MarcumRachlin a Division of Marcum LLP ■ marcumrachlin.com
One Southeast Third Avenue • Tenth Floor • Miami, Florida 33131 • Phone 305.377.4228 • Fax 305.377.8331
NEW YORK • NEW JERSEY • CONNECTICUT • PENNSYLVANIA • FLORIDA • GRAND CAYMAN
Internal Control over Compliance
The management of the Village is responsible for establishing and maintaining effective internal
control over compliance with requirements of laws, regulations, contracts and grants applicable
to federal programs. In planning and performing our audit, we considered the Village's internal
control over compliance with requirements that could have a direct and material effect on a major
federal program in order to determine our auditing procedures for the purpose of expressing our
opinion on compliance, but not for the purpose of expressing an opinion on the effectiveness of
internal control over compliance. Accordingly, we do not express an opinion on the
effectiveness of the Village's internal control over compliance.
A control deficiency in an entity's internal control over compliance 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 noncompliance with a type of
compliance requirement of a federal program on a timely basis. A significant deficiency is a
control deficiency, or combination of control deficiencies, that adversely affects the entity's
ability to administer a federal program such that there is more than a remote likelihood that
noncompliance with a type of compliance requirement of a federal program that is more than
inconsequential will not be prevented or detected by the entity's internal control.
A material weakness is a significant deficiency, or combination of significant deficiencies, that
results in more than a remote likelihood that material noncompliance with a type of compliance
requirement of a federal program will not be prevented and detected by the Village's internal
control.
Our consideration of internal control over compliance was for the limited purpose described in
the first paragraph of this section and would not necessarily identify all deficiencies in the
Village's internal control that might be significant deficiencies or material weaknesses. We did
not identify any deficiencies in internal control over compliance that we consider to be material
weaknesses, as defined above.
This report is intended solely for the information and use of the Mayor, Village Council,
management, and specific legislative or regulatory bodies and federal awarding agencies and
pass -through entities and is not intended to be and should not be used by anyone other than these
specified parties.
'i/caretiARo.tt,t
a division of Marcum LLP
Miami, Florida
April 21, 2010
75
MARCUM
RACH LI N
ACCOUNTANTS .• ADVISORS
A division of Marcum LLP
VILLAGE OF KEY BISCAYNE, FLORIDA
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FISCAL YEAR ENDED SEPTEMBER 30, 2009
Federal Pass -Through
CFDA Entity Identifying Federal
Federal Grantor/Pass-Through Grantor/Program Title Number Number Expenditures
U.S. Department of Homeland Security
Urban Area Security Initiative 97.067 N/A $ 36,519
U.S. Environmental Protection Agency
EPA Sewer Grant 66.202 XP -96461606 124,060
Pass -Through Program from:
State of Florida Department of Environmental Protection -
State Revolving Loan Fund 66.458 A ON 86 2,067,002
Total U.S. Environmental Protection Agency 2,191,062
U.S. Department of Justice
Federal Equitable Sharing N/A N/A 38,323
Pass -Through Program from:
State of Florida Department of Law Enforcement -
Edward Byrne Memorial Justice Assistance 16.73 8 2009-JAGD-DADE-
10-T8-179
2,000
Total U.S. Department of Justice 40,323
Total Expenditures of Federal Awards $ 2,267,904
See note to schedule of expenditures of federal awards.
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VILLAGE OF KEY BISCAYNE, FLORIDA
NOTE TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FISCAL YEAR ENDED SEPTEMBER 30, 2009
NOTE 1 — BASIS OF PRESENTATION
The accompanying schedule of expenditures of federal awards includes the federal grant
activity of the Village of Key Biscayne and is presented on the accrual basis of accounting.
The information in this schedule is presented in accordance with the requirements of OMB
Circular A-133, Audits of States, Local Governments, and Non -Profit Organizations.
Therefore, some amounts presented in this schedule may differ from amounts presented in,
or used in the preparation of, the basic financial statements.
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VILLAGE OF KEY BISCAYNE, FLORIDA
SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS
FISCAL YEAR ENDED SEPTEMBER 30, 2009
PRIOR YEAR FINANCIAL STATEMENT FINDINGS
Matters that are not repeated in the accompanying Schedule of Findings and Questioned Costs
• 08-01 — Internal Controls over Accounting and Financial Reporting
• 08-02 — Report Filing and Federal and Florida Single Audit Identification
PRIOR YEAR FEDERAL AWARDS FINDINGS AND QUESTIONED COSTS
Matters that are not repeated in the accompanying Schedule of Findings and Questioned Costs
• 08-02 — Report Filing and Federal Single Audit Identification
PRIOR YEAR STATE FINANCIAL ASSISTANCE FINDINGS AND QUESTIONED
COSTS
Matters that are not repeated in the accompanying Schedule of Findings and Questioned Costs
• 08-02 — Report Filing and Florida Single Audit Identification
78
VILLAGE OF KEY BISCAYNE, FLORIDA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FISCAL YEAR ENDED SEPTEMBER 30, 2009
SECTION I - SUMMARY OF AUDITOR'S RESULTS
Financial Statements
Type of auditor's report issued:
Internal control over financial reporting:
Material weakness(es) identified?
Significant deficiency(ies) identified not considered to be
material weakness(es)?
Unqualified Opinion
yes X no
yes X none reported
Noncompliance material to financial statements noted? yes X no
Federal Awards Programs
Internal control over major programs:
Material weakness(es) identified?
Significant deficiency(ies) identified not considered to be
material weakness(es)?
yes X no
yes X none reported
Type of auditor's report issued on compliance for Unqualified Opinion
major programs:
Any audit findings disclosed that are required to be reported
in accordance with Circular A-133, Section .510(a)? yes X no
Identification of major programs:
Federal Program
State Revolving Loan Fund
CFDA No.
66.458
Dollar threshold used to distinguish between Type A and
Type B programs: $300,000
Auditee qualified as low -risk auditee for federal
awards programs? yes X no
79
VILLAGE OF KEY BISCAYNE, FLORIDA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FISCAL YEAR ENDED SEPTEMBER 30, 2009
SECTION II — FINANCIAL STATEMENT FINDINGS
None.
SECTION III — FEDERAL AWARD FINDINGS AND QUESTIONED COSTS
None.
80