HomeMy Public PortalAboutCAFR 1997.pdfVILLAGE OF KEY BISCAYNE, FLORIDA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FISCAL YEAR ENDED SEPTEMBER 30, 1997
Prepared by:
THE FINANCE DEPARTMENT
VILLAGE OF KEY BISCAYNE, FLORIDA
TABLE OF CONTENTS
PAGE
II. FINANCIAL SECTION
ACCOUNT GROUPS:
GENERAL FIXED ASSETS ACCOUNT GROUP:
Schedule of General Fixed Assets By Source 26
Schedule of General Fixed Assets By Function and Activity 27
Schedule of Changes in General Fixed Assets By Function and Activity 28
GENERAL LONG-TERM DEBT ACCOUNT GROUP:
Schedule of General Long -Term Debt 29
III. STATISTICAL SECTION
General Governmental Expenditures by Function 30
General Governmental Revenues by Source 31
Utility Tax Revenue By Source; Franchise Fee Revenue by Source 32
Property Tax Levies and Collection 33
Assessed and Estimated Actual Value of Taxable Property 34
Property Tax Rates Direct and Overlapping Governments 35
Ratio of Annual Debt Service Expenditures for Net Bonded Debt to
General Governmental Expenditures 36
Schedule of Direct and Overlapping Debt - General Obligation Bonds 37
Ratio of Net Bonded Debt to Assessed Value and Per Capita 38
Demographic Statistics 39
Property Value, Construction and Bank Deposits 40
Principal Taxpayers 41
Miscellaneous Statistical Data 42
IV. COMPLIANCE SECTION
Report of Independent Certified Public Accountants on Compliance and on Internal
Controls over Financial Reporting Based on an Audit of Financial Statements
Performed in Accordance with Government Auditing Standards
Management Letter in Accordance with the Rules of the Auditor General of the
State of Florida
43
45
Schedule of Findings 47
VILLAGE OF KEY BISCAYNE, FLORIDA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FISCAL YEAR ENDED SEPTEMBER 30, 1997
.TABLE OF CONTENTS
PAGE
I. INTRODUCTORY SECTION
Letter of Transmittal
Certificate of Achievement for Excellence in Financial Reporting viii
Village Officials ix
Village Organization Chart x
II. FINANCIAL SECTION
REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS 1
GENERAL PURPOSE FINANCIAL STATEMENTS
(COMBINED STATEMENTS - OVERVIEW):
Combined Balance Sheet - All Fund Types and Account Groups 2
Combined Statement of Revenues, Expenditures and Changes in Fund Balances - 3
All Governmental Fund Types
Statement of Revenues and Expenditures - Budget and Actual - General Fund 4
Combined Statement of Revenues, Expenses and Changes in Retained Earnings - 5
Enterprise Funds
Combined Statement of Cash Flows - Enterprise Funds 6
Notes to General Purpose Financial Statements 7
COMBINING, INDIVIDUAL FUND AND ACCOUNT GROUP STATEMENTS
AND SCHEDULES
GENERAL FUND:
Comparative Balance Sheets 19
Schedule of Revenues and Expenditures - Budget and Actual 20
ENTERPRISE FUNDS:
Combining Balance Sheets 22
Combining Statements of Revenues, Expenses and Changes in Retained Earnings 23
Combining Statements of Cash Flows 24
AGENCY FUND:
Statement of Changes in Assets and Liabilities -Deferred Compensation Plan 25
INTRODUCTORY SECTION
Village Council
John F. Festa, Mayor
Mortimer Fried, Vice Mayor
Martha Fdez-Ledn Broucek
Gregory C. Han
Hugh T. O'Reilly
Michele Padovan
Betty Sime
Village Manager
C. Samuel Kissinger
VILLAGE OF KEY BISCAYNE
Office of the Village Manager
April 27, 1998
Honorable Mayor, Members of the Village Council and the Citizens of the Village of Key Biscayne:
The Comprehensive Annual Financial Report of the Village of Key Biscayne for the fiscal year ended
September 30, 1997 is hereby submitted. Responsibility for both the accuracy of the data and the
completeness and fairness of the presentation, including all disclosures, rests with the Village. To the
best of our knowledge and belief, the enclosed data is accurate in all material respects and is reported
in a manner designed to fairly present the financial position and results of operations of the various
funds and account groups of the Village. All disclosures necessary to enable the reader to gain an
understanding of the Village's financial activities have been included.
The Comprehensive Annual Financial Report (CAFR) is presented in four sections. The introductory
section includes this transmittal letter, the Village's organizational chart, a list of principal officials
and the Certificate of Achievement for Excellence in Financial Reporting. The financial section
includes the report of the independent certified public accountants on the general purpose financial
statements and the required notes and the individual fund and account group financial statements and
schedules. The statistical section includes selected financial and demographic information. The
compliance section contains those Reports required to comply with Government Accounting
Standards and Rules of the Auditor General of the State of Florida.
Reporting Entity and its Services
The Village includes for financial reporting purposes, in conformance with Governmental Accounting
Standards Board Statement Number 14, all funds and account groups for which the Village is
financially accountable.
The Village currently provides services associated with the following departments:
Building, Zoning and Planning Department, Emergency Services Department, Recreation
1
85 West McIntyre Street • Key Biscayne, Florida 33149 • (305) 365-5514 • Fax: (305) 365-8936
Department, Public Works Department, Finance and Administrative Services Department,
Office of the Village Clerk and Office of the Village Manager.
Government Structure
The Village of Key Biscayne was incorporated on June 18, 1991 and operates under a Council -
Manager form of government. The Village Council is comprised of the Mayor and six members and
is responsible for enacting ordinances, resolutions and regulations governing the Village as well as
appointing the members of various advisory boards, the Village Manager, Village Clerk and Village
Attorney. As Chief Administrative Officer, the Village Manager is responsible for enforcing laws and
ordinances, and appointing and supervising the department heads of the Village.
Location
Key Biscayne is a barrier island situated between the Atlantic Ocean to the east and Biscayne Bay to
the west. The island is located just south of Virginia Key, a separate island connected to the mainland
south of downtown Miami by the Rickenbacker Causeway. The 1990 U.S. Census population was
8,854 and another 4,000 reside on the island seasonally.
The Village is an incorporated municipality of approximately 1.25 square miles. It is located on Key
Biscayne and is bordered to the north by Crandon Park, a 960 acre park administered by Dade
County, and to the south by Bill Baggs Cape Florida State Recreation Area, a park of approximately
600 acres.
Dislocation event and its impact
On Monday, August 24, 1992, Hurricane Andrew hit Key Biscayne making an impact that will be felt
for decades. A 7 foot storm surge caused flooding of homes, schools, businesses, hotels, streets, and
landscaping. Wind did additional damage to structures and vegetation. As of September 30, 1997,
the close of the fiscal year which is the subject of this report, all of the work authorized by FEMA
has been completed and all claims have been finalized and outstanding balances received. After all
claims have been finalized and outstanding balances received, a three year period commences during
which all records must be maintained and available for audit.
M ; jor Activities
During the initial year of incorporation, most services were provided by Miami -Dade County. The
Village Police Department was activated on March 1, 1993, and the Village Fire Rescue Department
was activated on October 1, 1993. On January 1, 1995, the Village took over the responsibility of
providing solid waste and recycling collection services to single family residences for $199 annually
compared to the $399 previously charged by Metro -Dade County Department of Solid Waste
Management
II
FINANCIAL INFORMATION
Accounting System. Internal and Budgetary Control
The Village's accounting records for governmental funds operations are maintained on a modified
accrual basis, with revenues being recorded when available and measurable, and expenditures being
recorded when the services or goods are received and the liabilities are incurred.
Budgetary control is maintained at the department level. Expenditures that could result in an
overextended balance are not released until additional appropriations are made available.
Internal accounting controls have been designed to provide reasonable, but not absolute, assurance
regarding, safeguarding of assets against loss from unauthorized use or disposition and the reliability
of financial records for preparing financial statements and maintaining accountability. The concept
of reasonable assurance recognizes that the cost of the controls should not exceed the benefits likely
to be derived and the evaluation of costs and benefits requires estimates and judgement by
management.
All internal control evaluations occur within the above framework. We believe the Village's internal
accounting controls adequately safeguard assets and provide reasonable assurance of proper
recording of financial transactions.
Reporting Standards
The form and content of the Comprehensive Annual Financial Report and the accompanying financial
statements and statistical tables were prepared in conformance with standards set forth by:
1. Governmental Accounting Standards Board (GASB)
2. Financial Accounting Standards Board (FASB)
3. The Auditor General, State of Florida
4. The Charter of the Village of Key Biscayne
5. The Government Finance Officers Association of the United States and Canada
General Government Functions
The General Fund is the general operating fund of the Village. General tax revenues and other
receipts that are not allocated by law or contractual agreement to some other fund are accounted for
in this fund. General operating expenditures, fixed charges and capital improvement costs not
accounted for through other funds are accounted for in the General Fund.
The amount of General Fund revenues and expenditures from various sources are shown in the
following schedule:
REVENUES
Sources
Utility Taxes
Franchise Fees
Property Taxes
Intergovernmental
Licenses and Permits
Charges for Services
Donations
Other
Interest
Hurricane Loss Grant
Grants
FY 1997
$1,555,812
667,815
6,495,465
766,638
531,401
97,423
-0-
64,511
248,646
Revenue -0-
301,237
Total Revenue $10,728,948
EXPENDITURES AND OTHER USES (Budgetary Basis)
Function
General Government
Public Works
Building, Zoning & Planning
Parks and Recreation
Public Safety
Debt Service
Non -Departmental
Transfers Capital Improv. Fund
Total Expenditures & Transfers
Capital Projects Fund
FY 1996
$ 1,294,486
638,096
6,486,019
791,403
430,208
167,800
277,856
2,544
280,570
267,682
779.630
$11,416,303
FY 1997 FY 1996
$680,075
634,993
804,184
243,451
5,192,293
1,135,901
613,982
1,171,150
$10,476,029
$ 605,713
544,965
593,635
237,775
4,821,253
1,136,089
425,256
1.863.620
$ 10,228, 306
During Fiscal Year 1995, the Village Council established a Capital Improvement Fund for various
infrastructure projects of a multi -year character. Funding for these projects will come from annual
appropriations in the General Fund Budget. These appropriations are recorded as operating transfers
iv
in from the General Fund.
Jnterprise Funds
Enterprise Funds are established to finance and account for the acquisition, operation and
maintenance of facilities and services, and the cost of providing these goods and services on a
continuing basis is financed through the collection of charges from users.
Major Projects for Fiscal Year 1996 and 1997
For the 1994-1995 Fiscal Year, The Village Council established a budget for the Stormwater
Management Utility Fund and the Solid Waste Fund. The Village had the engineering firm of
Williams, Hatfield and Stoner design and prepare plans for the Stormwater Management System,
which has two segments. The first segment, costing $2,526,842, servicing an area between Crandon
Boulevard and The Atlantic Ocean was begun in June 1995 and completed in early 1996. The second
segment, estimated to cost $7,200,000 covers the area from Crandon Boulevard and West to
Biscayne Bay. It was begun in September 1995 and completion is anticipated by December 1997.
Fiduciary Fund
Fiduciary Fund is a Trust and Agency Fund established for the purpose of accounting for assets held
in trustee capacity or as an agent for individuals, private organizations and other government. As of
September 30, 1997, the following was recorded as Fiduciary Fund:
Trust and Agency Funds
A 401(a) money purchase plan is offered by the Village for its employees and was created in
accordance with Internal Revenue Code Section 401. The plan, managed by independent plan
administrators, permits employees to defer a portion of their salary until future years. The Village
does not have a fiduciary responsibility for the Plan, therefore it is included as a footnote disclosure
only. The 401(a) fund had $2,808,867 in investments as of Septemper 30, 1997.
In addition to the 401(a) plan, employees may contribute to a section 457 plan, which was created
in accordance with Internal Revenue Code Section 457. The plan, managed by an independent plan
administrator, permits employees to defer a portion of their salary until future years. Employee
investments in the section 457 plan as of September 30, 1997 were $892,910.
General Fixed Assets
The General Fixed Assets of the Village are those assets used in the performance of general
v
governmental functions. In accordance with generally accepted accounting principles for local
governments, the Village does not record depreciation on general fixed assets nor does it record
roads, bridges, curbs and gutters, streets and sidewalks, drainage systems, and similar assets that are
immovable and of value only to the Village. Assets are recorded at cost except donations which are
recorded at fair market value at the date of receipt. As of September 30, 1997, the general fixed
assets acquired amount to $17,239,211. Major additions for FY 1996-97 were for public safety
equipment and vehicles.
Debt Administration
The Village of Key Biscayne has two outstanding obligations: 1) a 10 year $9,200,000 Land
Acquisition Revenue Bond which was issued on December 20, 1993 at 4.36% from Northern Trust
Bank to purchase the land for the Village Green. The balance on September 30, 1997 was
$6,840,000. 2) A $7,200,000 Bond Anticipation Note at 4.89% from the SunTrust Bank and First
Union National Bank for stormwater infrastructure, matured on March 1997 and was extended for
two, one year periods until March 1999 at an annual rate of 4.52% and 4.32% respectively.
Cash Management
The Village had several cash management vehicles in this fiscal year and investment accounts or
money market accounts in the SunTrust and Northern Trust Banks under agreements which
provided for overnight investments of both the investment accounts and the operating accounts.
The Village also has an investment with the Florida Local Government Trust Fund administered by
the State Board of Administration, which as of September 30, 1997 had a balance of $123,281 in the
General Fund and $6,307 for the Law Enforcement Trust Fund.
Risk Management
The Village is insured with the Florida Municipal Insurance Trust for liability and property coverage
and with the Florida Municipal Self Insurance Fund for Workers Compensation coverage. The
liability limit under the policy is $5,000,000. Employee Life/Insurance is with Standard Insurance
Company. Long -Term Disability for all employees and state mandated additional coverages for
police officers and firemen is with the Hartford Insurance Company.
Independent Audit
Provisions in the Florida Statues and the Village Charter require an annual financial audit of the books
of account, financial records and transactions of all administrative departments of the Village by
Independent Certified Public Accountants. This requirement has been complied with and the
auditor's reports have been included in this CAFR.
CERTIFICATE OF ACHIEVEMENT FOR EXCELLENCE
IN FINANCIAL REPORTING
vi
The Government Finance Officers Association of the United States an Canada (GFOA) awarded a
Certificate of Achievement for Excellence in Financial Reporting to the Village for its Comprehensive
Annual Financial Report for the Fiscal Year ended September 30, 1996.
The Government Finance Officers Associate of the United States of Canada (GFOA) also presented
an award for Distinguished Budget Presentation to the Village of Key Biscayne for its annual budget
for the fiscal year beginning October 1, 1996.
In order to receive these awards, a governmental unit must publish an easily readable and efficiently
organized CAFR and a budget document that meets program criteria as a policy document, as an
operations guide, as a financial plan and as a communications device.
The awards are valid for a period of one year only. We believe our current CAFR and budget
continue to conform to program requirements and we have submitted them to the GFOA to
determine their eligibility for Fiscal Year ended September 30, 1997.
ACKNOWLEDGMENTS
The preparation of this report could have not been accomplished without the efficient and dedicated
services of the staff of the Village.
We express our appreciation to all members of the staff who assisted and contributed to the
preparation of this report. A special vote of thanks and appreciation is also extended to the firm
Rachlin Cohen & Holtz for their professional approach and high standards in conduct of their
independent audit of the Village's financial records and transactions.
Respecfully submitted,
C.Samuel Kis ` ger
Village Manag - r
`Thomas N. Z CPA
Director of Finance and Administrative Services
CSK/TNZ/tnz
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, 1996
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.
' F 9
Q. Of OF THE s
_ UNITED STATES N
AND N
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6\ CORPORATION
o� S��I poi
CUICA34
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President
Y/-/ z
Executive Director
VILLAGE OF KEY BISCAYNE, FLORIDA
VILLAGE OFFICIALS
VILLAGE COUNCIL
John F. Festa, Mayor
Michele Padovan, Vice -Mayor Martha Broucek
Mortimer Fried Betty Sime
Hugh T. O'Reilly Gregory Han
VILLAGE MANAGER
C. Samuel Kissinger
VILLAGE CLERK
Conchita Alvarez
VILLAGE ATTORNEY
Weiss, Serota, Helfman, Pastoriza & Guedes, P.A.
FINANCE DIRECTOR
Thomas N. Zannis
VILLAGE AUDITORS
Rachlin Cohen & Holtz
Certified Public Accountants
VILLAGE OF KEY BISCAYNE, FLORIDA
ORGANIZATIONAL CHART
The Village of Key Biscayne day-to-day operations are managed by the Vilage Manager who
reports directly to the Village Council. The Village Manager appoints the department heads of
the five departments.
VOTERS
of
KEY BISCAYNE
I
VILLAGE
COUNCIL.
(7)
LOCAL
PLANNING
AGENCY
VILLAGE
CLERK
(1.5)
DEPARTMENT
OF BUILDING,
ZONING AND
PLANNING
(8)
SPECIAL
MASTERS
(2)
VILLAGE
MANAGER
(2)
ASSISTANT
TO
MANAGER
(1)
BUILDING
1 ZONING
PLANNING
CODE
ASSISTANCE
DEPARTMENT
OF EMERGENCY
SERVICES
(70)
FIRE
RESCUE
POLICE
DEPARTMENT
OF
RECREATION
(3)
1
SPECIAL
EVENTS
1 SPORTS &
ATHLETICS
PROGRAMS/
TOURS
VILLAGE
ATTORNEY
DEPARTMENT
OF
PUBLIC WORKS
(2)
1
VILLAGE
ENGINEER
1 CONTRACT
SUPERVISOR
STORMWATER
MANAGEMENT
REFUSE
COLLECTION
&
RECYCLING
POLICE/
FIRE
RETIREMENT
BOARD (5)
_i
DEPARTMENT
OF FINANCE
AND
ADMLN. SERVICES
(2)
FINANCE/
ACCOUNTING
PERSONNEL
BENEFITS
MAINTENANCE
RCH
Rachlin
Cohen &
Holtz
CERTIFIED PUBLIC ACCOUNTANTS & CONSULTANTS
A Partnership Including Professional Association,
REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
Honorable Mayor, Village Council and Village Manager
Village of Key Biscayne, Florida
We have audited the accompanying general purpose financial statements of the Village of Key Biscayne,
Florida (the Village) as of and for the year ended September 30, 1997, as listed in the table of contents. These
general purpose financial statements are the responsibility of the Village's management. Our responsibility is
to express an opinion on these general purpose financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards 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 general purpose financial statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An
audit also includes 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 opinion.
In our opinion, the general purpose financial statements referred to above present fairly, in all material respects,
the financial position of the Village as of September 30, 1997 and the results of its operations and cash flows of
its proprietary fund type for the year then ended in conformity with generally accepted accounting principles.
In accordance with Government Auditing Standards, we have also issued a report dated April 14, 1998 on our
consideration of the Village's internal control over financial reporting and our tests of its compliance with
certain provisions of laws, regulations, grants and contracts.
Our audit was conducted for the purpose of forming an opinion on the general purpose financial statements
taken as a whole. The accompanying combining, individual fund and account group statements and schedules
as listed in the table of contents are presented for purposes of additional analysis and are not a required part of
the general purpose financial statements. Such information has been subjected to the auditing procedures
applied in the audit of the general purpose financial statements and, in our opinion, is fairly stated in all
material respects in relation to the general purpose financial statements taken as a whole.
The information shown in the statistical section listed in the table of contents has not been subjected to the
auditing procedures applied in the audit of the general purpose financial statements and, accordingly, we
express no opinion thereon.
Ae11-44L gs- 14'ef
Miami, Florida
April 14, 1998
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GENERAL PURPOSE
FINANCIAL STATEMENTS
(Combined Statements - Overview)
VILLAGE OF KEY BISCAYNE, FLORIDA
COMI3INED BALANCE SIIELT
ALL FUND TYPES AND ACCOUNT GROUPS
SEPTEMBER 30, 1997
(WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1996)
Governmental Proprietary Fiduciary Account
Fund Types Fund Types Fund Type Groups
Trust General General Totals
Capital and Fixed Long -Term (Memorandum Onl)/1
General Protects Enterprise Agency Assets Debt 1997 1996
ASSETS AND OTHER DEBITS
Cash and cash equivalents $ 1,387,500 $ 1,563,379 $ 1,956,526 $ - $ - $ - $ 4,907,405 $ 5,621,921
Investments 2,027,425 2,000,000 - 892,910 - 4,920,335 8,452,495
Participant loans receivable - - - 229,533
Due from other governments 96,642 - 96,642 200,927
Property taxes receivable 34,397 - - - 34,397 67,155
Accounts receivable 184,820 - 122,145 306,965 112,282
Accrued interest receivable 82,581 61,929 8,442 - 152,952 182,747
General fixed assets - 9,563,103 17,239,211 - 26,802,314 22,884,757
Amount to be provided for retirement of general long-term debt - - 7,462,477 7.462,477 8,163.152
Total assets and other debits $ 3,813.365 $ 3,625,308 $ 11,650,216 $ 892,910 $ 17,239,211 $ 7,462,477 $ 44,683,487 $ 45,914,969
LIABILITIES, EQUITY AND OTHER CREDITS
Liabilities:
Accounts payable and accrued liabilities $ 312,607 $ 382 $ 173,032 $ - $ - $ - $ 486,021 $ 904,205
Retainage payable - 121,813 - - 121,813 -
Deposits and performance bonds 27,083 - - 27,083 25,600
Deferred revenue 72,053 - - 72,053 106,309
Deferred benefits payable - 892,910 892,910 2,390,239
Bond anticipation notes 7,200,000 - 7,200,000 7,200,000
Compensated absences payable - 622,477 622,477 503,152
Revenue bonds payable 6,840,000 6,840,000 7,660.000
Total liabilities 411,743 382 7,494.845 892,910 7,462,477 16,262,357 18,789,505
Equity and other credits.
Investment in general fixed assets - - - 17,239,211 - 17,239,211 17,100,597
Contributed capital - - 2,682,901 - - 2,682,901 2,682,901
Retained earnings - 1,472,470 - 1,472,470 1,258,948
Fund balance:
Reserved 2,023,786 3,624,926 - 5,648,712 4,660,1 10
Unreserved
Designated 523,815 - - - - 523,815 484,965
Undesignated 854.021 - - - - 854,021 937,943
Total equity and other credits 3.401.622 3.624.926 4.155.371 - 17.239,211 - 28,421,130 27.125.464
Total liabilities, equity and other credits $ 3,813.365 $ 3,625,308 $ 11,650,216 $ 892.910 $ 17,239,211 $ 7,462,477 $ 44,683,487 $ 45,914,969
See notes to general purpose financial statements
-2-
VILLAGE OF KEY BISCAYNE, FLORIDA
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES
FISCAL YEAR ENDED SEPTEMBER 30, 1997
(WITH COMPARATIVE TOTALS FOR FISCAL YEAR ENDED SEPTEMBER 30, 1996)
Capital Totals
General Projects (Memorandum Only)
Fund Fund 1997 1996
Revenues:
Property taxes $ 6,495,465 $ $ 6,495,465 $ 6,486,019
Utility taxes 1,555,812 1,555,812 1,294,486
Franchise fees 667,815 667,815 638,096
Intergovernmental 766,638 766,638 791,403
Licenses and permits 531,401 531,401 430,208
Charges for services 97,423 97,423 167.800
Donations 277,856
Other 64,511 64,511 2,544
Interest 248,646 153,478 402,124 356,650
Grants 301,237 91.480 392.717 1.047,321
Total revenues 10,728.948 244,958 10.973.906 11.492.383
Expenditures:
Current:
General government 766,282 725,515 1,491,797 1,218,093
Public works 660,780 660,780 753,823
Building, zoning, and planning 775,938 775,938 593,635
Parks and recreation 239,029 239,029 234,154
Public safety 5,017,882 5,017,882 4,634,385
Non -departmental 650,393 650,393 536,054
Capital outlay 248,656 248,656 215,441
Debt Service:
Principal 820,000 820,000 785,000
Interest 315,901 315,901 351.089
Total expenditures 9,494,861 725,515 10,220,376 9,321,674
Excess (deficiency) of revenues over expenditures 1.234,087 (480.557) 753,530 2,170.709
Other financing sources (uses):
Operating transfers in 1,531,150 1,531,150 1,806,850
Operating transfers out (1.341.150) - (1,341,150) (1.806.850)
Total other financing sources (uses) (1,341,150) 1,531,150 190,000
Excess (deficiency) of revenues and other financing
sources over expenditures and other financing uses (107,063) 1,050,593 943,530 2,170,709
Fund balances, beginning 3,508,685 2,574,333 6,083,018 3,969,079
Equity transfer out (56,770)
Fund balances, ending $ 3,401,622 $ 3,624,926 $ 7,026,548 $ 6,083,018
See notes to general purpose financial statements.
VILLAGE OF KEY BISCAYNE, FLORIDA
STATEMENT OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL - GENERAL FUND
FISCAL YEAR ENDED SEPTEMBER 30, 1997
Revenues:
Property taxes
Utility taxes
Franchise fees
Intergovernmental
Licenses and permits
Charges for services
Other
Interest
Grants
Total revenues
Expenditures:
Current:
General government
Public works
Building, planning and zoning
Parks and recreation
Public safety
Non -departmental
Debt Service:
Principal
Interest
Total expenditures
Excess of revenues over expenditures
Other financing sources (uses):
Appropriation of prior years' fund balance
Operating transfers out
Total other financing sources (uses)
Excess of revenues over expenditures
and other financing uses
Budget
$ 6,376,060
1,293,000
654,000
750,500
523.000
42,000
600
200,000
129.000
Budgetary
Basis
Actual
$ 6,495,465
1,555,812
667,815
766,638
531,401
97,423
64,511
248,646
301.237
9.968.160 10.728.948
674,615 680,075
701,537 634,993
776,859 804,184
243,989 243,451
5,358,440 5,192,293
704,000 613,982
820,000 820,000
316.100 315,901
9.595.540 9.304.879
372.620 1.424.069
627,380
(1.000.000) (1.171.150)
(372.620) (1.171.150)
Variance
Favorable
(Unfavorable)
$ 119,405
262,812
13,815
16,138
8,401
55,423
63,911
48,646
172.237
760.788
(5,460)
66,544
(27,325)
538
166,147
90,018
199
290.661
1.051.449
(627,3 80)
(171.150)
(798.530)
$ 252,919 $ 252,919
See notes to general purpose financial statements.
VILLAGE OF KEY BISCAYNE, FLORIDA
COMBINED STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS
ENTERPRISE FUNDS
FISCAL YEAR ENDED SEPTEMBER 30, 1997
(WITH COMPARATIVE TOTALS FOR FISCAL YEAR ENDED SEPTEMBER 30, 1996)
1997 1996
Operating revenue $ 800,953 $ 698,006
Operating expenses:
General and administrative costs 264.547 244.981
Operating income 536.406 453.025
Non -operating revenue (expense):
Interest income 205,876 455,697
Interest expense (338,760) (352,080)
Intergovernmental - 8.319
Total non -operating revenue (expense) (132.884) 111.936
Income before operating transfers 403,522 564,961
Operating transfers out (190.000)
Net income 213.522 564.961
Retained earnings, beginning 1,258,948 2,403,437
Reclassification of transfer (1.709.450)
Retained earnings, beginning, as restated 1.258.948 693.987
Retained earnings, ending $ 1,472,470 $ 1,258,948
See notes to general purpose financial statements.
VILLAGE OF KEY BISCAYNE, FLORIDA
COMBINED STATEMENT OF CASH FLOWS
ENTERPRISE FUNDS
FISCAL YEAR ENDED SEPTEMBER 30, 1997
(WITH COMPARATIVE TOTALS FOR FISCAL YEAR ENDED SEPTEMBER 30, 1996)
1997 1996
Cash flows from operating activities:
Operating income $ 536.406 $ 451025
Adjustments to reconcile operating income to net
cash provided by operating activities:
(Increase) decrease in:
Accounts receivable (30,315) (47,181)
Interest receivable 133,319 16,445
Due from other governments 89,677 (89,677)
Increase (decrease) in:
Accounts payable (311,430) (137,120)
Retainage payable 121,813 -
Due to other funds (157.204)
Total adjustments 3.064 (414.737)
Net cash provided by operating activities 539.470 38.288
Cash flows from non -capital financing activities:
Operating transfers out (190.000)
Net cash used by non -capital financing activities (190.000)
Cash flows from capital and related financial activities:
Payments for construction in progress (3,778,943) (4,520,673)
Proceeds from capital contributions 981,770
Interest paid (338.760) (352.080)
Net cash used by capital and related
financing activities
Cash flows from investing activities:
Proceeds from sale of investments
Interest received
Net cash provided by investing activities
Net increase (decrease) in cash
Cash and cash equivalents, beginning
Cash and cash equivalents, ending
(4.117.703) (3.890.983)
4,291,789
205.876
812.211
455.697
4.497.665 1.267.908
729,432 (2,584.787)
1.227.094 3.811.881
$ 1,956,526 $ 1,227,094
See notes to general purpose financial statements.
NOTES TO GENERAL PURPOSE
FINANCIAL STATEMENTS
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
SEPTEMBER 30, 1997
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
This summary of the Village of Key Biscayne, Florida's (the Village) significant accounting
policies is presented to assist the reader in interpreting the general purpose financial statements
and other data in this report. The policies are considered essential and should be read in
conjunction with the accompanying general purpose financial statements.
The accounting policies of the Village conform to generally accepted accounting principles
(GAAP) as applied to governmental units. This report, the accounting systems and classification
of accounts conform to standards of the Governmental Accounting Standards Board (GASB),
which is the accepted standard -setting body for establishing governmental accounting and
financial reporting principles.
1. Reporting Entity
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, and
building, zoning and planning functions. 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 basic criteria for determining whether another organization should be included in the
Village's reporting entity for general purpose financial statements is financial accountability.
Financial accountability includes (1) the appointment of a voting majority of the organization's
governing body, (2) the ability of the Village to impose its will on the organization, or (3) if
there is a financial benefit/burden relationship. In addition, an organization which is fiscally
dependent on the Village should be included in its reporting entity.
The Village is not associated with any organizations meeting the above stated criteria.
Therefore, the general purpose financial statements include all the funds and accounts groups
for which the Village is financially accountable.
2. Measurement Focus, Basis of Accounting and Basis of Presentation
The accounts of the Village are organized and operated on the basis of funds and account
groups. A fund is an independent fiscal and accounting entity with a self -balancing set of
accounts. Fund accounting segregates funds according to their intended purpose and is used
to aid management in demonstrating compliance with finance -related legal and contractual
provisions. The minimum number of funds are maintained consistent with legal and
managerial requirements. Account groups are a reporting device to account for certain assets
and liabilities of the governmental funds not recorded directly in those funds.
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
2. Measurement Focus, Basis of Accounting and Basis of Presentation (Continued)
The Village has the following fund types and account groups:
Governmental Fund Types
Governmental funds are used to account for the Village's general governmental
activities. Governmental fund types use the flow of current financial resources
measurement focus and the modified accrual basis of accounting. Under the modified
accrual basis of accounting, revenues are recognized when susceptible to accrual (i.e.,
when they are measurable and available). Measurable means the amount of the
transaction can be determined and available means collectible within the current period
or soon enough thereafter to pay liabilities of the current period. The Village considers
all revenues available if they are collected within 60 days after year end. Expenditures
are recorded when the related fund liability is incurred, except for unmatured principal
and interest on general long-term debt which is recognized when due, and certain
compensated absences which are recognized when the obligations are expected to be
liquidated with expendable available financial resources.
Taxes, intergovernmental revenue, licenses and interest are susceptible to accrual.
Sales taxes collected and held by the state at fiscal year end on behalf of the Village are
also recognized as revenue. Other receipts and fees become measurable and available
when cash is received by the Village and recognized as revenue at that time.
Cost reimbursement type grant revenues are considered earned and are accrued
simultaneously with the grant expenditures unless such expenditures are prohibited by
the grant requirements in which case revenues are recognized upon receipt of the grant
award.
The general fund is the Village's primary operating fund. It accounts for all financial
resources of the Village, except those required to be accounted for in another fund.
Resources are derived primarily from property and utility taxes and intergovernmental
revenues. Expenditures are incurred to provide general government, public safety,
public works, building, planning and zoning and recreation services.
The capital projects fund accounts for the acquisition or construction of major capital
projects not being financed by proprietary funds. The Village has one capital projects
fund; the capital improvement fund.
Q
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Proprietary Fund Type
Proprietary fluids are accounted for on the flow of economic resources measurement
focus and use the accrual basis of accounting. Under this method, revenues are recorded
when earned and expenses are recorded at the time liabilities are incurred. The Village
applies all applicable Financial Accounting Standards Board (FASB) statements issued
on or before November 30, 1989 except those that are contradicted by a Governmental
Accounting Standards Board (GASB) pronouncement in accounting and reporting for its
proprietary operations. The proprietary fund includes the following fund type:
The enterprise funds are used to account for those operations that are financed and
operated in a manner similar to private business or where the Council has decided
that the determination of revenues earned, costs incurred (including depreciation)
and/or net income is necessary for management accountability. The Village has
two enterprise funds; a stonnwater utility fund and a solid waste fund.
Fiduciary Fund Type
The fiduciary fund accounts for assets held by the Village in a trustee capacity or as an
agent on behalf of others. Fiduciary funds include the following fund type:
Agency funds are custodial in nature and do not present results of operations or have a
measurement focus. Agency funds are accounted for using the modified accrual basis
of accounting. This fund is used to account for assets that the Village holds for others
in an agency capacity. The Village has one agency fund which accounts for the
deferred compensation plan.
Account Groups
The general fixed assets account group is used to account for fixed assets not accounted
for in proprietary funds. The general long-term debt account group is used to account
for general long-term obligations and compensated absences that are not specific
liabilities of the proprietary fund.
3. Budgets and Budgetary Accounting
An annual appropriated budget is prepared for the general fund.
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 proposed revenues and expenditures with an
explanation regarding each expenditure that is not of a routine nature.
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
3. Budgets and Budgetary Accounting (Continued)
(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, 1997, there were approximately $350,000 in supplemental appropriations.
(e) Formal budgetary integration is employed as a management control device for the general
fund.
(f)
(g)
The budget for the general fund is adopted on a basis consistent with generally accepted
accounting principles (GAAP), except for certain unbudgeted expenditures of reserves.
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. The
classification detail at which expenditures may not legally exceed appropriations is at the
department level.
(h) Unencumbered appropriations lapse at year end. Encumbered amounts are not
reappropriated in the following year's budget.
(i) Budgeted amounts are as originally adopted or as amended. Individual type amendments
were not material in relation to the original appropriations.
4. Encumbrances
Encumbrances outstanding at year end represent the estimated amount of expenditures to
result if unperformed purchase orders and other commitments at year end are completed.
Appropriations lapse at year end; however, the Village generally intends to honor purchase
order and other commitments in process. As a result, encumbrances outstanding at year end
are reported as reservations of fund balance since they do not constitute expenditures or
liabilities.
5. Deposits and Investments
The Village's cash and cash equivalents are considered to be cash on hand and short-term
investments with original maturities of three months or less from the date of acquisition.
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
5. Deposits and Investments (Continued)
Village administration is authorized to invest in those instruments authorized by the Florida
Statutes. Investments, which consist of certificates of deposit and funds held with the State
Board of Administration Pool, are reported at fair value which is cost. Investments of the
deferred compensation plan are reported at fair value.
6. Fixed Assets
Fixed assets used in governmental fund type operations are accounted for in the general fixed
assets account group, rather than in the governmental funds. General fixed assets purchased are
initially reported as expenditures in the general and capital projects funds and are capitalized at
historical cost or estimated cost if actual historical cost is not available in the general fixed
assets account group, except for certain infrastructure assets which include streets, alleys,
sidewalks, drainage and lighting systems which are immovable and of value only to the Village.
Depreciation is not required and has not been provided on general fixed assets.
Proprietary fund fixed assets currently consist of assets capitalized and classified as
construction in progress for the stormwater utility system project.
7. Compensated Absences
It is the Village's policy to permit employees to accumulate earned but unused vacation and
sick pay benefits within specified limits. The accumulated unpaid vacation and sick leave is
reported in the general long-term debt account group.
8. Long -Term Obligations
The Village reports long-term debt of governmental funds in the general long-term debt
account group. Certain other governmental fund obligations not expected to be financed with
current available financial resources are also reported in the general long-term debt account
group. Long-term debt and other obligations financed by proprietary funds are reported as
liabilities of those funds.
9. Reserves and Designations
Fund balances are reserved to indicate that a portion of fund equity is not available for
appropriation or is legally segregated for a specific future use. The description of each
reserve indicates the purpose for which each was intended.
Designated fund balances indicate that a portion of fund equity has been segregated based on
tentative plans of the Village administration. Such plans or intent are subject to change.
Unreserved, undesignated fund balance is the portion of fund equity available for any lawful use.
1i
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
10. Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting
principles requires management to make estimates and assumptions that affect the amounts
reported in the financial statements and accompanying notes. Although these 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.
11. Comparative Data/Reclassifications
Certain amounts in the 1996 columns have been reclassified to conform to 1997 presentation.
Comparative total data for the prior year has been presented in selected sections of the
financial statements to provide an understanding of changes in Village's financial position
and operations.
12. Memorandum Only - Total Columns
Total columns on the combined statements which are captioned "memorandum only"
aggregate the columnar amounts presented by fund type and account group and are presented
only to facilitate financial analysis. Data in these columns do not present financial position
or results of operations in conformity with generally accepted accounting principles; neither
is such data comparable to a consolidation. Interfund eliminations have not been made in the
aggregation of this data.
NOTE 2. BUDGET/GAAP RECONCILIATION
As of September 30, 1997, the following reconciles expenditures reported on a GAAP basis to
the budgetary basis:
Excess of revenues over expenditures and other financing uses (budgetary basis) $ 252,919
Unbudgeted expenditures of reserves (354,105)
Prior year encumbrances (5,877)
Deficiency of revenues and other financing sources over expenditures and other
financing uses (GAAP) $(107,063)
NOTE 3. DEPOSITS AND INVESTMENTS
At September 30, 1997, the Village maintained deposits (cash on hand) with book balances of
$4,390,816.
-12-
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
NOTE 3. DEPOSITS AND INVESTMENTS (Continued)
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 equal to 50% to 125% of the average daily balance
for each month of all public deposits in excess of any applicable deposit insurance held. The
percentage of eligible collateral (generally in the form of U.S. Government and agency
securities, state or local government debt, or corporate bonds) to public deposits is dependent
upon the depository's financial history and its compliance with Chapter 280. 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 cash deposits are deemed
as insured and are therefore classified as risk category 1.
The Village is authorized to invest in obligations of the U.S. Treasury, its agencies,
instrumentalities and the State Board of Administration investment pool.
The Village's investments are categorized in the following table to give an indication of the level
of risk assumed by the Village at year end. Category 1, includes insured or registered, or
securities held by the Village or its agent in the Village's name. Category 2, includes uninsured
and unregistered, with securities held by the counterparty's trust department or agent in the
Village's name. Category 3, includes uninsured and unregistered, with securities held by the
counterparty, or by its trust department or agent but not in the Village's name.
At September 30, 1997, the Village's investments balances were as follows:
Fair
Category I Value
Certificates of Deposit $4,414,425 $4,414,425
Investments not subject to categorization:
Deferred compensation plan 892,910
State Board of Administration investment pool 129,589
$5,436,924
A reconciliation of cash and investments as shown on the combined balance sheet is a follows:
Cash on hand
Carrying amount of investments
Cash and cash equivalents
Investments
$4,390,816
5,436,924
$9,827,740
$4,907,405
4,920,335
$9,827,740
11
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
NOTE 4. 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.
Property taxes levied each November 1, by the Village and all other taxing authorities within the
County, are centrally billed and collected by 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, 1997, there were no
significant delinquent taxes.
NOTE 5. FIXED ASSETS
The following is a summary of changes in general fixed assets during the year:
Balance Balance
September 30, September 30,
1996 Additions Deletions 1997
Land $13,240,657 $ - $ - $13,240,657
Buildings 587,076 - - 587,076
Improvements other than buildings 964,393 1,981 966,374
Equipment 2,217,514 214,721 86,304 2,345,931
Furniture and fixtures 90,957 8,216 - 99,173
Total $17,100,597 $224,918 $86,304 $17,239,211
Depreciation is not required and has not been provided on general fixed assets.
The following is a summary of proprietary fund type fixed assets at September 30, 1997:
Balance Balance
September 30, September 30,
1996 Additions Deletions 1997
Construction in progress $5,784,160 $3,778,944 $ - $9,563,104
1 A
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
NOTE 6. LONG-TERM DEBT
Changes in general long-term debt during the year are summarized as follows:
Balance
September 30,
1996 Additions
Revenue bonds payable $7,660,000 $ -
Compensated absences payable 503,152 134,940
$8,163,152 $134,940
Revenue Bonds
Balance
September 30,
Payments 1997
$820,000 $6,840,000
15.615 622,477
$835,615 $7,462,477
During the fiscal year ended September 30, 1994 the Village issued land acquisition revenue
bonds of $9,200,000, the proceeds of which were used for the acquisition of the Village
Green property. The Village has pledged public service tax revenues to secure payment of
the principal and interest on the bonds. The bonds are due in annual principal installments
ranging from $855,000 in fiscal 1998 to $1,105,000 in fiscal 2004. Interest accrues at 4.36%
per annum.
Debt service requirements to maturity is as follows:
Fiscal year:
1998
1999
2000
2001
2002
2003-2004
Principal Interest Total
$ 855,000 $ 279,585 $1,134,585
895,000 241,435 1,136,435
935,000 201,541 1,136,541
975,000 159,903 1,134,903
1,015,000 116,521 1,131,521
2,165,000 95,375 2,260.375
$6,840,000 $1,094,360 $7,934,360
During the fiscal year ended September 30, 1995, the Village obtained financing for the west
side stormwater construction project in the form of $7,200,000 Bond Anticipation Notes, Series
1995. These notes were extended for an additional two year period maturing on March 30, 1999
and included a reduction in the interest rate from 4.89% to 4.32%. The principal payment
amount of the notes including interest of $154,656 is due at maturity.
NOTE 7. COMMITMENTS AND CONTINGENCIES
Litigation
The Village is involved in several lawsuits incidental to its operations, the outcome of which,
in the opinion of management and legal counsel, should not have a material effect on the
financial condition of the Village.
-1 5-
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
NOTE 7. COMMITMENTS AND CONTINGENCIES (Continued)
Commitments
The Village is obligated under a non -cancelable operating lease for office space until October
1, 1998. Rent expense was $81,000 for fiscal year 1997.
The Village, as of September 30, 1997, has outstanding construction commitments of
approximately $582,000 for their stormwater utility projects.
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.
Contingent Liability
Federal and State programs in which the Village participates were audited in accordance with
the provision of regulatory requirements and grantor agencies. Pursuant to those provisions,
certain programs were tested for compliance with applicable grant requirements. While no
matters of noncompliance were disclosed by the audit, government agencies may subject
grant programs to additional compliance tests which may result in disallowed costs. In the
opinion of management, future disallowances of current grant expenditures, if any, would not
have a material effect on the Village's financial condition.
NOTE 8. RESERVED/DESIGNATED FUND BALANCE
As of September 30, 1997, fund balances in the general fund and capital projects fund have been
reserved or designated for the following purposes:
Reserved Fund Balance
General fund:
Supplemental fire aid $ 118,820
Beach improvements 23,653
Beautification of Crandon Boulevard 22,347
Recreation facilities 411,380
Grant audits 541,024
Community center 28,930
Beach park and walk 263,925
Compensated absences 205,000
Subsequent year's budget 408,707
$2,023,786
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
NOTE 8. RESERVED/DESIGNATED FUND BALANCE (Continued)
Reserved Fund Balance (Continued)
Capital projects fund:
Capital improvements
$3,624,926
Designated Fund Balance
General fund:
Police/fire equipment and building $ 60,546
Community grants, maintenance and improvements 51,642
Future personnel expense 280,239
Professional fees 56,388
Inspector fees 75,000
$ 523,815
NOTE 9 DEFERRED COMPENSATION PLAN
The Village maintains a deferred compensation plan for its employees in accordance with
Internal Revenue Code Section 457. The plan is voluntary and the Village does not contribute.
Employees may elect to defer a portion of their salary until future years. Deferred compensation
deposits are made into the employees' accounts through payroll deductions before income taxes
are withheld. The deferred compensation is not available to employees until termination,
retirement, death or unforeseeable emergency. Contributions by the employees for the fiscal
year ended September 30, 1997 were $198,096.
All amounts of compensation deferred under the plan, all property and rights purchased with
those amounts, and all income attributable to those amounts, property or rights (until paid or
made available to the employee or beneficiary) are solely the property and rights of the Village,
subject only to the claims of the Village's general creditors. Participants' rights under the plan
are equal to those of general creditors of the Village in an amount equal to the fair market value
of the deferred account of each participant.
It is the opinion of the Village that the Village has no liability for losses under the plan but does
have the duty of due care that would be required of an ordinary prudent investor. The Village
believes that it is unlikely that it will use plan assets to satisfy claims of general creditors in the
future.
NOTE 10. DEFINED CONTRIBUTION PLAN
The Village is a single employer that contributes to the Village of Key Biscayne Money
Purchase Plans, which are defined contribution pension plans created in accordance with Internal
Revenue Code Section 401(a). The plan currently covers all full-time employees of the Village.
Under these plans, the Village contributes 11% and the employee contributes 6% or 14%.
Employer contributions for fiscal year ended September 30, 1997 were $361,649 while the
employee contributions were $222,876.
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
NOTE 10. DEFINED CONTRIBUTION PLAN (Continued)
A defined contribution pension plan provides pension benefits in return for services rendered,
provides an individual account for each participant and specifies how contributions to the
individual's account are to be determined instead of specifying the amount of benefits the
individual is to receive.
Under a defined contribution pension plan, the benefits a participant will receive depends solely
on the amount contributed to the participants' account, the returns earned on investments on
those contributions, and forfeitures of other participants' benefits that may be allocated to such
participants' account.
The Village's total payroll and covered payroll for fiscal year 1997 was $4,063,000.
The Money Purchase Plans held no securities of the Village or related parties during the year or
as of September 30, 1997.
COMBINING, INDIVIDUAL FUND AND
ACCOUNT GROUP
STATEMENTS AND SCHEDULES
GENERAL FUND
The general fund is the principal operating fund of the Village and is used to account for
resources traditionally associated with governments which are not required to be accounted for in
another fund.
VILLAGE OF KEY BISCAYNE, FLORIDA
GENERAL FUND
COMPARATIVE BALANCE SHEETS
SEPTEMBER 30, 1997
(WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1996)
1997 1996
ASSETS
Cash and cash equivalents $ 1,387,500 $ 1,728,672
Investments 2,027,425 2,000,000
Due from other governments 96,642 111,250
Property taxes receivable 34,397 67,155
Accounts receivable 184,820 20,452
Interest receivable 82,581 40,986
Total assets $ 3,813,365 $ 3,968,515
LIABILITIES AND FUND BALANCE
Liabilities:
Accounts payable and accrued liabilities
Deposits and performance bonds
Deferred revenue
Total liabilities
$ 312,607 $ 327,921
27,083 25,600
72,053 106,309
411,743 459,830
Fund balance:
Reserved for:
Supplemental fire aid 118,820 112,095
Encumbrances 5,877
Beach improvements 23,653 24,355
Beautification of Crandon Boulevard 22,347 189,048
Recreation facilities 411,380 408,448
Grant audits 541,024 541,024
Community center 28,930 28,453
Beach park and walk 263,925 250,000
Compensated absences 205,000 146,227
Dade heritage trust 4,500
Subsequent year's budget 408,707 375,750
2,023,786 2,085,777
Unreserved:
Designated for:
Police/fire equipment and building
Community grants, maintenance and improvements
Future personnel expense
Professional fees
Inspector fees
Unreserved, undesignated
60,546
51,642
280,239
56,388
75,000
73,298
60,154
264,375
87,138
523,815 484,965
854,021 937,943
Total fund balance
Total liabilities and fund balance
3,401,622 3.508,685
$ 3,813,365 $ 3,968,515
VILLAGE OF KEY BISCAYNE, FLORIDA
GENERAL FUND
SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL
FISCAL YEAR ENDED SEPTEMBER 30, 1997
Revenues:
Property taxes
Budget
Budgetary Variance
Basis Favorable
Actual (Unfavorable)
$ 6.376,060 $ 6.495,465 $ 119.405
Utility taxes 1.293,000 1,555,812 262.812
Franchise fees 654,000 667.815 13.815
Intergovernmental:
State shared revenue 750.500 766.638 16.138
Licenses and permits:
Occupational licenses 23,000 30,702 7,702
Building permits 500,000 500,699 699
523,000 531.401 8.401
Charges for services 42,000 97,423 55.423
Other:
Miscellaneous 600 64,511 63,911
Interest 200,000 248,646 48,646
Grants:
Other grants 129,000 301,237 172.237
Total revenue $ 9,968,160 $ 10,728,948 $ 760,788
(Continued)
VILLAGE OF KEY BISCAYNE, FLORIDA
GENERAL FUND
SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL
(Continued)
FISCAL YEAR ENDED SEPTEMBER 30, 1997
Budget
Budgetary Variance
Basis Favorable
Actual (Unfavorable)
Expenditures:
General government:
Elected officials $ 13,300 $ 18,813 $ (5,513)
Administration 372,788 370,053 2,735
Village clerk 120,527 137,506 (16,979)
Village attorney 168,000 153.703 14.297
Total general government 674.615 680.075 (5.460)
Public works 701.537 634.993 66.544
Building, planning and zoning 776.859 804,184 (27,325)
Parks and recreation 243.989 243,451 538
Public safety 5.358.440 5.192.293 166.147
Non -departmental 704.000 613.982 90.018
Debt service:
Principal 820,000 820,000
Interest 316.100 315,901 199
1.136.100 1,135,901 199
Total expenditures
Transfers out
Total expenditures and transfers
9,595,540
1,000,000
9.304,879 290.661
1,171,150 (171.150)
$ 10,595,540 $ 10,476,029 $ 119,511
ENTERPRISE FUNDS
Enterprise funds are used to account for operations that are financed and operated in a manner
similar to private business enterprises where the intent is that the costs of providing goods or
services be financed or recovered primarily through user charges.
• Stormwater Utility System
The stormwater utility system accounts for the construction and maintenance of the
stonnwater system.
• Solid Waste
The solid waste fund provides collection service for trash removal. Solid waste
expenditures are primarily for curbside collections.
VILLAGE OF KEY BISCAYNE, FLORIDA
ENTERPRISE FUNDS
COMBINING BALANCE SHEETS
SEPTEMBER 30, 1997
(WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1996)
Stormwater
Utility Solid Totals
System Waste 1997 1996
ASSETS
Current assets:
Cash and cash equivalents $ 1,906,424 $ 50,102 $ 1,956,526 $ 1;227,094
Investments - - 4,291,789
Due from other governments - 89,677
Accounts receivable 88,452 33,693 122,145 91,830
Interest receivable 8.387 55 8.442 141.761
Total current assets
Fixed assets
2,003,263 83,850 2,087,113 5,842,151
9.563.103 - 9.563.103 5.784.160
Total assets $ 11,566,366
LIABILITIES AND FUND EQUITY
Current liabilities:
Accounts payable and accrued liabilities
Retamage payable
Bond anticipation notes
Total current liabilities
Long-term debt:
Bond anticipation notes
Total liabilities
Fund equity:
Contributed capital
Retained earnings
Total fund equity
83,850 $ 11,650.216 $ 11,626,311
$ 155,493 $ 17,539 $ 173,032 $ 484,462
121,813
121,813
- - 7.200.000
277,306 17,539 294,845 7,684,462
7.200.000 7.200.000
7.477.306 17.539 7.494.845 7.684.462
2,682,901
1.406.159
66.311
2,682,901
1.472.470
2,682,901
1.258.948
4.089.060 66.311 4.155.371 3.941.849
Total liabilities and fund equity $ 11,566,366 $ 83,850 $ 11,650,216 $ 11,626,311
VILLAGE OF KEY BISCAYNE, FLORIDA
ENTERPRISE FUNDS
COMBINING STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN
RETAINED EARNINGS
FISCAL YEAR ENDED SEPTEMBER 30, 1997
(WITH COMPARATIVE TOTALS FOR FISCAL YEAR ENDED SEPTEMBER 30, 1996)
Stormwater
Utility Solid Totals
System Waste 1997 1996
Operating revenue $ 540,091 $ 260,862 $ 800,953 $ 698,006
Operating expenses:
General and administrative costs 14.420 250,127 264.547 244.981
Operating income 525.671 10.735 536.406 453.025
Non -operating revenues (expense):
Interest income 197,920 7,956 205,876 455,697
Interest expense (338,760) (338,760) (352,080)
Intergovernmental 8.319
Total non -operating revenues (expenses) (140,840) 7.956 (132.884) 111.936
Income before transfers 384,831 18,691 403,522 564,961
Transfers out (190.000) (190,000)
Net income 194,831 18.691 213.522 564.961
Retained earnings, beginning 1,211,328 47,620 1,258,948 2,403,437
Reclassification of transfer - (1.709.450)
Retained earnings, beginning, as restated 1,211,328 47,620 1,258,948 693,987
Retained earnings, ending $ 1,406,159 $ 66,311 $ 1,472,470 $ 1,258.948
VILLAGE OF KEY BISCAYNE, FLORIDA
ENTERPRISE FUNDS
COMBINING STATEMENTS OF CASH FLOWS
FISCAL YEAR ENDED SEPTEMBER 30, 1997
(WITH COMPARATIVE TOTALS FOR FISCAL YEAR ENDED SEPTEMBER 30, 1996)
Stormwater
Utility Solid Totals
System Waste 1997 1996
Cash flows from operating activities
Operating income $ 525,671 $ 10,735 $ 536,406 $ 453.025
Adjustments to reconcile operating income to
net cash provided (used) by operating activities.
(Increase) decrease in:
Accounts receivable 3,378 (33,693) (30,315) (47,181)
Interest receivable 133,374 (55) 133,319 16,445
Due from other governments 89,677 89,677 (89,677)
Increase (decrease) in.
Accounts payable (328,969) 17,539 (311,430) (137,120)
Retainage payable 121,813 121,813
Due to other funds - (157.204)
Total adjustments 19.273 (16.209) 3.064 (414,737)
Net cash provided (used) by operating activities 544,944 (5,474) 539.470 38,288
Cash flows from non -capital financing activities.
Transfers out (190,000) (190.000)
Net cash used by non -capital
financing activities (190,000) (190,000)
Cash flows from capital and relating financing activities
Payments for construction in progress (3,778,943) - (3,778,943) (4,520,673)
Proceeds from capital contributions - 981,770
Interest paid (338,760) (338,760) (352,080)
Net cash used by capital and
related financing activities (4,117,703) (4,117,703) (3,890,983)
Cash flows from investing activities:
Proceeds from sale of investments
Interest received
Net cash provided by investing activities
Net increase (decrease) in cash
Cash and cash equivalents, beginning
Cash and cash equivalents, ending
4,291,789 4,291,789 812,211
197,920 7,956 205.876 455,697
4,489,709 7,956 4,497,665 1.267,908
726,950 2,482 729,432 (2,584,787)
1,179,474 47,620 1,227,094 3.811.881
$ 1,906,424 $ 50,102 $ 1,956,526 $ 1,227,094
AGENCY FUND
This fund is used to account for assets held for employees in accordance with the provisions of
Internal Revenue Code Section 457.
VILLAGE OF KEY BISCAYNE, FLORIDA
AGENCY FUND
DEFERRED COMPENSATION PLAN
STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
FISCAL YEAR ENDED SEPTEMBER 30, 1997
Balance Balance
September 30, September 30,
1996 Additions Deductions 1997
ASSETS
Investments, at fair value $ 558.989 $ 457.903 $ 123.982 $ 892.910
LIABILITIES
Deferred benefits payable $ 558 989 $ 457.903 $ 123.982 $ 892.910
1VIY
470 MN
• • •h:�9
'.�1'lliilliil
GENERAL FIXED ASSETS ACCOUNT GROUP
To account for fixed assets not accounted for in proprietary fund operations.
VILLAGE OF KEY BISCAYNE, FLORIDA
SCHEDULE OF GENERAL FIXED ASSETS BY SOURCE
SEPTEMBER 30, 1997
(WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1996)
1997 1996
General fixed assets:
Land $ 13,240,657 $ 13,240,657
Buildings 587,076 587,076
Improvements other than buildings 966,374 964,393
Furniture and fixtures 99,173 90,957
Equipment 2.345.931 2.217.514
Total general fixed assets $ 17,239,211 $ 17,100,597
Investment in general fixed assets by source
General fund
Donations
$ 13,239,211 $ 13,100,597
4.000.000 4.000.000
Total investment in general fixed assets $ 17,239,211 $ 17,100,597
VILLAGE OF KEY BISCAYNE, FLORIDA
SCHEDULE OF GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY
SEPTEMBER 30, 1997
Improvements Furniture
Other Than and
Land Building Buildings Fixtures Equipment Total
General government $ 4,000,000 $ $ 11,299 $ 52,805 $ 254,345 $ 4,318,449
Parks and recreation 9,240,657 942,522 - 124,905 10,308,084
Public safety 587.076 12.553 46.368 1.966.681 2.612.678
$ 13,240,657 $ 587,076 $ 966,374 $ 99,173 $ 2,345,931 $ 17,239,211
VILLAGE OF KEY BISCAYNE, FLORIDA
SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY
FISCAL YEAR ENDED SEPTEMBER 30, 1997
Balance Balance
September 30, September 30,
1996 Additions Deletions 1997
General government
Parks and recreation
Public safety
$ 4,261,822 $ 56,627 $ $ 4,318,449
10,307,509 575 10,308,084
2.531.266 167.716 86.304 2.612.678
$ 17,100,597 $ 224,918 $ 86,304 $ 17,239.211
GENERAL LONG-TERM DEBT ACCOUNT GROUP
To account for the Village's unmatured principal and long-term portion of compensated absences.
VILLAGE OF KEY BISCAYNE, FLORIDA
SCHEDULE OF GENERAL LONG-TERM DEBT
SEPTEMBER 30, 1997
(WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1996)
1997 1996
Amount to be provided for retirement of general long-term debt $ 7.462.477 $ 8.163.152
General long-term debt payable:
Revenue bonds payable
Compensated absences payable
$ 6,840,000 $ 7,660,000
622.477 503.152
Total general long-term debt payable $ 7.462,477 $ 8.163.152
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STATISTICAL SECTION
VILLAGE OF KEY BISCAYNE, FLORIDA
GENERAL GOVERNMENTAL EXPENDITURES BY FUNCTION
Fiscal General Public Parks and Public
Year Government Safety Recreation Works Total
1992 $ 1,468,000 $ 13,511 $ 11,779 $ 86,580 $ 1,579,870
1993 2,848,857 2,790,379 240,794 185,257 6,065.287
1994 4,126,094 (2) 4,453,539 9,601,922 (1) 782,001 18,961556
1995 5,524,305 (2) 4,294,606 211,159 573,844 10,603,914
1996 3,124,384 (2) 4.634,385 234,154 753,823 8,746,746
1997 3,577,170 (2) 5,017,882 239,029 660,780 9,494,861
(1) Includes acquisition of land for $9,238,317 for the Village Green.
(2) General government includes economic development, building, planning and zoning, debt service
capital outlay and non -departmental expenditures.
Notes: The Village's first year of operation was fiscal year 1992.
Includes general fund only.
VILLAGE OF KEY BISCAYNE, FLORIDA
GENERAL GOVERNMENTAL REVENUES BY SOURCE
Licenses
Fiscal Property and Inter- Utility Franchise
Year Taxes Permits Governmental Taxes Fees Other Interest Total
1992 $ $ 15,766 $ 934,018 $ 979,236 $ 151,392 $ 23,276 $ 4,480 $ 2,108,168
1993 3,536,480 1,458,733 2,485,979 1,212,084 625,815 169,429 121,676 9,610,196
1994 6,640,045 629,246 997,501 1,268,428 668,020 115,664 288,978 10,607,882
1995 6,820,807 351,152 788,062 1,257,179 652,844 665,086 369,540 10,904,670
1996 6,486,019 430,208 791,403 1,294,486 638,096 1,495,521 280,570 11,416,303
1997 6,495,465 531,401 766,638 1,555,812 667,815 463,171 248,646 10,728,948
Notes: The Village's first year of operation was fiscal year 1992
Includes general fund only.
VILLAGE OF KEY BISCAYNE, FLORIDA
UTILITY TAX REVENUE BY SOURCE
Fiscal Telecom- Fuel
Year Electricity munications Gas Oil Water Total
1992 $ 676,919 $ 157,887 $ 35,552 $ 3,548 $ 105,830 $ 979,736
1993 857,002 199,308 24,184 4,708 126,882 1,212,084
1994 888,752 202,702 26,925 4,331 145,719 1,268,429
1995 875,704 186,780 38,130 3,920 152,645 1,257,179
1996 888,651 199,746 37,034 3,885 165,169 1,294,485
1997 1,032,445 274,768 42.066 3,616 202,918 1,555,813
FRANCHISE FEE REVENUE BY SOURCE
Fiscal Cable
Year Electricity Television Telephone Total
1992 $ 112,658 $ 38,734 $ $ 151,392
1993 570,605 39,821 15,389 625,815
1994 603,638 43,877 20,505 668,020
1995 589,031 43,899 19,914 652,844
1996 571,093 46,824 20,179 638,096
1997 578,195 62,342 27,277 667,814
VILLAGE OF KEY BISCAYNE, FLORIDA
PROPERTY TAX LEVIES AND COLLECTIONS
Tax Fiscal Assessed Tax Total Percent
Year') Year Value Levy Collected(2) Collected
1992 1993 $ 1,617,141,088 $ 3,687,082 $ 3;536,480 95.9%
1993 1994 1,560,057,130 6,925,094 6,640,045 95.9
1994 1995 1,741,921,584 7,143,620 6,820,807 95 5
1995 1996 1,767,457,005 6,716,337 6,418,864 95,6
1996 1997 1,861,243,132 6,711,642 6,495,465 96.8
(1) Assessments as of January 1 of the year listed; bills mailed in October of that year; taxes become
delinquent at the end of April of the subsequent year. Initial property tax levy by the Village
October, 1992.
(2) Collections reflect timely payment discounts of up to 4% and other adjustments.
VILLAGE OF KEY BISCAYNE, FLORIDA
ASSESSED AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY
Net
Assessed
Tax Real Personal Property
Year Property Property Value
1992 $ 1,601,826,518 $ 15,314,570 $ 1,617,141,088
1993 1,543,711,468 16,345,662 1,560,057,130
1994 1,715,626,471 26,295,113 1,741,921,584
1995 1,744,363,535 23,093,470 1,767,457,005
1996 1,837,939,078 23„304,054 1,861,243.132
1997 1,978,219,125 24,830,107 2,003,049,232
Source Miami -Dade County Property Appraisers Office
Note: Assessed values equal the estimated actual value.
VILLAGE OF KEY BISCAYNE, FLORIDA
PROPERTY TAX RATES
DIRECT AND OVERLAPPING GOVERNMENTS
Village of
Key Biscayne
Dade County
Fiscal Village Operating
Year Millage Millage
1992 2.280 7.305
1993 4.439 7.305
1994 4.101 7.253
1995 3.800 6.828
1996 3.606 6.469
1997 3.606 6.023
Debt Total
Service County
Millage Millage
1.139 8.444
0.830 8.135
0.817 8 070
0.789 7.617
0.774 7.243
0.929 6.952
State
Total
SFWMD FIND State
Millage Millage Millage
0.547
0.597
0.497
0.547
0.572
0.597
(1) Village established its own fire district effective October 1, 1993
Source: Miami -Dade County Property Appraisers Office
0.052 0.599
0.052 0.649
0.049 0.546
0.040 0.587
0.038 0.610
0.050 0.647
School District
Operating
Millage
Debt Total
Service School
Millage Millage Other Total
9.023 0.505 9.528 3.445 24.296
9.283 0.640 9.923 1.101(1) 24.247
9.503 0.842 10.345 0.443 23.505
9.373 1.016 10.389 0.429 22.822
9.356 1.010 10.366 0.439 22.264
9.356 1.106 10.462 0.416 22.083
-35-
VILLAGE OF KEY BISCAYNE, FLORIDA
RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR NET
BONDED DEBT TO GENERAL GOVERNMENTAL EXPENDITURES
Ratio of Debt
Total Service to
Total General General
Fiscal Debt Governmental Governmental
Year Principal Interest (1) Service (2) Expenditures Expenditures
1994 $ $ 194,989 $ 194,989 $ 19,053,562 1.0%
1995 755,000 384,661 1,139,661 10,603.914 10.7
1996 785,000 351,089 1,136,089 10.610,366 10.7
1997 820,000 315,901 1,135,901 10,836,011 10.5
(1) Excludes bond issuance and other costs
(2) Debt service on revenue bonds
Includes general fund only
VILLAGE OF KEY BISCAYNE, FLORIDA
SCHEDULE OF DIRECT AND OVERLAPPING BONDED DEBT
GENERAL OBLIGATION BONDS
(IN THOUSANDS)
SEPTEMBER 30, 1997
Net
General Percentage Amount
Obligation Applicable Applicable
Taxable Bonded to to
Property Debt Key Key
Jurisdiction Value Outstanding Biscayne Biscayne
Village of Key Biscayne $ 2,003,049 $ 6,840 100.00% $ 6,840
Miami -Dade County (1) 105,926,268 342,324 1.86 (3) 6,367
Miami -Dade County Schools (2) 77,605,600 805.660 2.52 (3) 20.303
$ 1,154,824 $ 33,510
(1) Source: Miami -Dade County Finance Department - Taxable Property Value reflects January 1, 1997
amounts and Net General Obligation Bonded Debt outstanding figures are as of September 30, 1997.
(2) Source: School Board of Miami -Dade County Division of Accounting - Taxable Property Value reflects
September 30, 1996 amounts and Net General Obligation Bonded Debt outstanding figures are as of
June 30, 1997.
(3) Based on the percentage of the County's School Board's tax roll valuation comprised of real and personal
property situated in the Village of Key Biscayne.
17
VILLAGE OF KEY BISCAYNE, FLORIDA
RATIO OF NET BONDED DEBT
TO ASSESSED VALUE AND PER CAPITA
Ratio
of Net Net
Bonded Bonded
Net Debt to Debt
Fiscal Assessed Bonded Assessed Per
Year Population Value (1) Debt (2) Value Capita
1994 8,887 $ 1,560,057,130 $ 9,200,000 0.59% $ 1,035
1995 8,894 1,741921,584 8,445,000 0.48 949
1996 8,886 1,767.457,005 7,660,000 0.43 862
1997 8,937 (3) 1,861,243,132 6,840,000 0.37 765
(1) Net bonded assessed actual value of taxable property
(2) Net bonded debt represents revenue bonds
(3) As of April 1997 - University of Florida Economic and Business Research
VILLAGE OF KEY BISCAYNE, FLORIDA
DEMOGRAPHICS STATISTICS
POPULATION
Estimates of Population by Age
Year
1990
Under 18 Years 18 to 64 Years 65 Years or Older
Number Percent Number Percent Number Percent Total
1,646 19 5,684 64 1,524 14 8,854
Estimates of Population by Race
Anglo Black Hispanic Total
1990 5,028 36 3,790 8,854
INCOME*
Per Capita Income
Average
Per
Anglo Black Hispanic Capita
1990 $ 44,615 $ 24,577 $ 28,341 $ 37,629
UNEMPLOYMENT RATES** (Percent)
Miami -Dade County
Village of Key Biscayne
* Source: Bureau of Census, Income Division
** Source: State Department of Labor
1992 1993 1994 1995 1996 1997
10.0 7.7 7.9 6.8 7.8 7.1
3.8 3.6 3.6 3.1 3.6 3.3
VILLAGE OF KEY BISCAYNE, FLORIDA
PROPERTY VALUE, CONSTRUCTION AND BANK DEPOSITS
(000s)
Residential Commercial
Total
Fiscal Permits # of
Year Issued Units Valuation
1992 35 25 $ 638,483
# of
Units Valuation
Total
of
Construction
Omitted
Bank
Deposits (1)
10 $ 401,058 $ 1,039,541 $20,282,998
1993 1,737 1,633 26,822,424 104 4,383,673
1994 2,205 2,081 25,410,312 124 45,567,390
1995 2,857 2,568 33,820,503 289 2,099,661
1996 3,171 3,060 65,318,655 111 1,231,097
1997 3,570 3,402 82,481,700 168 667,328
31,206,097
70,977,702
35,920,164
66,549,752
83,149,028
18,146,647
17,524,140
17,938,762
14,561,654
34,664,829 (2)
(1) Federal Reserve Bank Atlanta, GA. Information is for Miami -Dade County, which the Village of Key
Biscayne is a part of. Information is not available for the Village of Key Biscayne alone.
(2) Florida Bankers Association, Branch Deposit Report as of September 1997.
Note: Village began issuing permits on September 1, 1992.
VILLAGE OF KEY BISCAYNE, FLORIDA
PRINCIPAL TAXPAYERS
SEPTEMBER 30, 1997
Taxpayer
Ocean Club Key Biscayne
Grand Bay Residence of Key Biscayne
Sonesta Beach Hotel
G.B. Hotel Partnership Limited
VMS Partnership Ltd.
Key Biscayne Shopping Center
Finivest Investment, Et. Al. (Key Colony)
Coldwell Banker
Florida Power & Light
Red Dragon Sands, Ltd.
Source: Miami -Dade County Appraisers Office
% of
Total
Taxable Assessed
Valuation Valuation
$ 61,893,774 3.33%
48,067,499 2.58
28,855,555 1.55
16,842,465 .90
12,662,248 .68
9,263,589 .50
8,230,098 .44
6,385,810 .34
5,805,342 .31
5.797.604 .31
$ 203,803,984 10.94%
A 1
VILLAGE OF KEY BISCAYNE, FLORIDA
MISCELLANEOUS STATISTICAL DATA
SEPTEMBER 30, 1997
Date of Incorporation 1991
Form of Government Council -Manager
Area 1 2 Square Miles
Miles of Street 20.2 Linear Miles
Fire Protection
Number of Stations 1
Police Protection:
Number of Stations 1
Education:
Elementary
Attendance Centers
Number of Students 572
Number of Teachers 34
Dade County Water & Sewer Authority
Number of Customers
Average Daily Consumption
1,808
2,600,000 gallons
Sewers:
Number of Customers 843
Fire Hydrants 186
Building Permits Issued 2,186
Recreation and Culture:
Number of Parks 2
Number of Libraries 1 (Operated by Miami -Dade County)
Number of Tennis Centers 1
Number of Recreational Centers 1
Employees:
Full Time
87
A�aO��
0174141
, .'
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COMPLIANCE SECTION
Rachlin
Cohen &
Holtz
CERTIFIED PUBLIC ACCOUNTANTS St CONSULTANTS
A Partnership Including I'roteY,ional AYsouitiom
Report of Independent Certified Public Accountants on Compliance and on
Internal Control over Financial Reporting 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 general purpose financial statements of the Village of Key Biscayne, Florida (the
Village) as of September 30, 1997 and for the year then ended, and have issued our report dated April 14,
1998. We conducted our audit in accordance with generally accepted auditing standards and the
standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States.
Compliance
As part of obtaining reasonable assurance about whether the Village's financial statements are free of
material misstatement, we performed tests of its compliance with certain provisions of laws, regulations,
contracts and grants, non-compliance 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 non-compliance that are required to be reported under
Government Auditing Standards.
Internal Control over Financial Reporting
In planning and performing our audit, we considered the Village's internal control over financial
reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the
financial statements and not to provide assurance on the internal control over financial reporting. Our
consideration of the internal control over financial reporting would not necessarily disclose all matters in
the internal control over financial reporting that might be material weaknesses. A material weakness is a
condition in which the design or operation of one or more of the internal control components does not
reduce to a relatively low level the risk that misstatements in amounts that would be material in relation
to the financial statements being audited may occur and not be detected within a timely period by
employees in the normal course of performing their assigned functions. We noted no matters involving
the internal control over financial reporting and its operation that we consider to be material weaknesses.
-43-
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1I ,. L. Vth A I it f IC It aP HI k E Tn t C6! P , C -t 1,6 P t
RCH
Honorable Mayor, Village Council and Village Manager
Village of Key Biscayne, Florida
Page Two
However, we noted other matters that we have reported to management in the schedule of findings
accompanying this report.
This report is intended for the information of the Mayor, Village Council, management and the Auditor
General of the State of Florida. However, this report is a matter of public record and its distribution is
not limited.
Li -4A_ let.t cr 24?.t
Miami, Florida
April 14, 1998
-44-
RAH
Rachlin
Cohen &
Holtz
CERTIFIED PUBLIC ACCOUNTANTS & CONSULTANTS
A Partnership Including I'rote,sional Asu'ctahuns
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 general purpose financial statements of the Village of Key Biscayne, Florida (the
Village) as of and for the year ended September 30, 1997, and have issued a report thereon dated April
14, 1998.
We conducted our audit in accordance with generally accepted auditing standards 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 general purpose financial statements are free of material
misstatement.
In connection with our audit of general purpose financial statements of the Village for the year ended
September 30, 1997, we report the following in accordance with Chapter 10.550 Rules of the Auditor
General, Local Government Entity Audits, which requires that this report specifically address but not be
limited to the matters outlined in Rule 10.554(1)(e):
1. No inaccuracies, irregularities, shortages, defalcations or violations of laws, rules, regulations
and contractual provisions were reported in the preceding annual financial audit.
2. The Village, during fiscal year 1997, was not in a state of financial emergency as defined by
Florida Statutes 218.503(1). The Village has no deficit fund balances.
3. Recommendations made in the preceding annual financial audit have been implemented except
as reported in the schedule of findings accompanying this report.
4. Recommendations to improve the Village's present financial management and accounting
procedures are accompanying this report in the schedule of findings.
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Honorable Mayor, Village Council and Village Manager
Village of Key Biscayne, Florida
Page Two
5. During the course of our audit, nothing came to our attention that caused us to believe that the
Village:
a. Was in violation of any laws, rules or regulations.
b. Made any illegal or improper expenditures.
c. Had improper or inadequate accounting procedures, other than those noted in the schedule of
findings and questioned costs accompany this report.
d. Failed to record financial transactions which could have a material effect on the Village's
general purpose financial statements.
e. Had other inaccuracies, irregularities, shortages or defalcations.
6. The annual financial report for the year ended September 30, 1997 has been filed with the
Department of Banking and Finance pursuant to Section 218.32 Florida Statutes and is in
agreement with the audited financial statements of the same period.
7. The Village was incorporated by Laws of Florida 90-142.
This report is intended for the information of the Mayor, Village Council, management, and the Auditor
General of the State of Florida. However, this report is a matter of public record and its distribution is
not limited.
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Miami, Florida
April 14, 1998
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VILLAGE OF KEY BISCAYNE, FLORIDA
SCHEDULE OF FINDINGS
FISCAL YEAR ENDED SEPTEMBER 30, 1997
I. CURRENT YEAR COMMENTS AND RECOMMENDATIONS
Other Matters
1. Year 2000
Effective January 1, 2000, several computer systems will experience incapability of handling
data maintenance and general system calculations relating to the change in year. The computer
will interpret year "2000" or "00" as "1900" and the transaction will not be posted properly.
Recommendation
We recommend that the Village review its current computer programs to see if the system's
ability to handle this change is already programmed or if not, the effect in both time and money
to update the various programs prior to the year 2000 be analyzed and updated on an ongoing
basis (i.e., be year 2000 compliant prior to the year 2000).
Management's Response
The Village will discuss this issue with its supplier (MAS 90) but at present does not believe it
will affect them.
2. New Accounting Pronouncements
As a result of the issuance of a new Government Accounting Standards Board (GASB)
statement, we have prepared the following general recommendation. GASB Statement No. 32,
Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred
Compensation Plans, is effective for periods beginning after December 31, 1998 (fiscal year
1999 for the Village). This GASB requires the governmental entities to place deferred
compensation assets into a Trust with the participants as beneficiaries, thus eliminating the
availability of the funds to the general creditors of the Village.
Reconunenelation
Due to the beneficial nature of this GASB on the employees of the Village, we recommend that
the Village early implement this GASB.
Management's Response
The Village will early implement in fiscal year 1998.
VILLAGE OF KEY BISCAYNE, FLORIDA
SCHEDULE OF FINDINGS
(Continued)
FISCAL YEAR ENDED SEPTEMBER 30, 1997
I. CURRENT YEAR COMMENTS AND RECOMMENDATIONS (Continued)
Other Matters (Continued)
3. Grants Monitoring
We noted that each department (police, fire, building and zoning) maintain their own grants.
However, there is no centralized coordination to ensure proper reporting, accounting or
monitoring of the grants.
Recommendation
We recommend that the Village designate an employee or utilize the services of a grants
administrator to coordinate the monitoring and compliance of all grants (federal, state and local)
maintained by the Village.
Management's Response
The Village will centralize procedures for all grants and they will be controlled by the Finance
Department.
4. Forfeiture Funds
Currently, the Village accounts for all law enforcement forfeiture funds in the general fund.
Although a separate account is maintained through the State Board of Administration, it could
become more difficult to monitor the use of these funds as more activity occurs regarding law
enforcement forfeiture funds. Also, federal and state forfeitures and the related expenditures
should be accounted for separately.
Recommendation
We recommend that the Village establish separate federal and state law enforcement forfeiture
funds to record transactions regarding confiscated property and forfeited funds.
Management's Response
The Village will record and segregate these funds during fiscal 1998.
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VILLAGE OF KEY BISCAYNE, FLORIDA
SCHEDULE OF FINDINGS
(Continued)
FISCAL YEAR ENDED SEPTEMBER 30, 1997
I. CURRENT YEAR COMMENTS AND RECOMMENDATIONS (Continued)
Other Matters (Continued)
5. Expenditures
During our testing of cash disbursements we noted certain transactions which were approved to
be recorded against the FY 1997 budget; however, the expenditures were FY 1998 expenditures.
For budgetary purposes, the Village has the ability to encumber or reserve available funds in it's
current budget for expenditures to be incurred in the next fiscal year. However, generally
accepted accounting principles (GAAP) requires all revenues and expenditures to be recorded
under the modified accrual basis of accounting. Therefore, expenditures for fiscal 1998 must be
recorded in 1998 and not retroactively included in 1997.
Recommendation
We recommend that the new Finance director implement procedures to prevent the potential for
such improper recording of expenditures.
Management's Response
The Village, through the Finance Director will implement procedures to correct these
transactions.
6. Cash Disbursements
During our preliminary audit work, we noted that invoices are properly not marked "canceled" or
"paid". Also we noted that invoices ready for payment are not properly authorized and are not
always forwarded to the finance department in a timely manner. By not properly canceling the
invoices the Village could pay the same invoice twice.
Recommendation
We recommend the Village properly cancel all invoices. The Village should also ensure that
notation is made on the actual invoice in addition to the authorized signature that is required on
the payment voucher request. Also, all invoices should be sent directly to the finance department
and posted to accounts payable so the Village is aware of all pending liabilities.
Management's Response
The Village has instructed the Finance Department to implement procedures to correct this.
VILLAGE OF KEY BISCAYNE, FLORIDA
SCHEDULE OF FINDINGS
(Continued)
FISCAL YEAR ENDED SEPTEMBER 30, 1997
I. CURRENT YEAR COMMENTS AND RECOMMENDATIONS (Continued)
Other Matters (Continued)
7. Policies and Procedures Manual
We noted that the Village does not have a formal policies and procedures manual for the Finance
Department. This could create a problem for the Village if one of their current employees were
to leave without adequate training of a replacement.
Recommendation
We recommend the Village prepare a detailed policies and procedures manual. This manual
should include detailed procedures for the processing of all types of transactions.
Management's Response
The Village will prepare a policies and procedures manual.
II. PRIOR YEAR RECOMMENDATION NOT IMPLEMENTED IN CURRENT YEAR
1. Final Accounting and Reporting
The final accounting and reporting for the general fixed assets account group, general long-term
debt account group and the deferred compensation plan agency fund was not completed in a
timely manner.
In order to maintain an efficient audit process, we recommend that the Village prepare the final
accounting and reporting for all funds and account groups in a timely manner. This matter is a
repeat comment.
Management's Response
The Village will do so for fiscal year 1998.
VILLAGE OF KEY BISCAYNE, FLORIDA
SCHEDULE OF FINDINGS
(Continued)
FISCAL YEAR ENDED SEPTEMBER 30, 1997
II. PRIOR YEAR RECOMMENDATION NOT IMPLEMENTED IN CURRENT YEAR (Continued)
2. Compensated Absences
The recordkeeping function for compensated absences (vacation and sick leave) is handled by the
responsible departments (general employees, police and fire). The recordkeeping for the general
employees was inadequate as there was no written authorization for used vacation and sick leave
time. We recommend that the Village require written authorization for vacation and sick leave time
approved by supervisory personnel and maintain those leave records in the personnel files. We also
recommend the Village review the recordkeeping function of the police and/or fire departments and
adopt similar procedures. This matter also applies to the current year.
Management's Response
The Village will establish policies to ensure that written authorization for vacation and sick leave
used by the general employees is obtained and that the leave records are maintained in their
personnel file.
Village Seal Description
One of the oldest and most recognizable landmarks in South Florida, the lighthouse was
first constructed in 1825. It has a colorful, well -documented history. It stands in the Bill Baggs
Cape Florida State Recreation Area. Like all lighthouses, it is a symbol of familiar homecom-
ing to sailors, fishermen, and landlubbers alike. It also represents man-made structures of
lasting quality, strength and safety in an uncertain world.
The coconut palm, threatened by disease in Florida in recent years, has been a popular
symbol of peaceful nature for many tropical areas around the world. Key Biscayne was
once a plantation for this versatile tree.
The two sea birds, against the backdrop of the moon, stand for the animals with whom
we share our environment.
The sun, sustainer of life, which figures prominently in many municipal emblems around
the state, usually depicted at high noon, has just disappeared below the horizon, creating
one of those sunsets that occur every once in a while. This kind of mood and feeling evoke
a universal human reaction — a powerful visual reminder of the potential beauty and transi-
tory nature of all things.
The moon is shown on our seal not just to be different from other communities, not only
for its magical qualities, but also because we have been told that one of the earliest local
Indian dialects contained a word -picture phrase, "Bischiyano," meaning, simply — "Favorite
Path of the Rising Moon."
Adoption of the Village Seal took place on June 8, 1993 and adoption of the description
of the Village Seal took place on August 10, 1993.