HomeMy Public PortalAboutCAFR 1998.pdfVILLAGE OF KEY BISCAYNE, FLORIDA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FISCAL YEAR ENDED SEPTEMBER 30, 1998
Prepared by:
THE FINANCE DEPARTMENT
VILLAGE OF KEY BISCAYNE, FLORIDA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FISCAL YEAR ENDED SEPTEMBER 30, 1998
TABLE OF CONTENTS
PAGE
I. INTRODUCTORY SECTION
Letter of Transmittal i
Village Officials ix
Village Organization Chart x
Certificate of Achievement for Excellence in Financial Reporting xi
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 3
Combined Statement of Revenues, Expenditures and Changes in Fund Balances -
All Governmental Fund Types 4
Statement of Revenues and Expenditures - Budget and Actual - General Fund 5
Combined Statement of Revenues, Expenses and Changes in Retained Earnings -
Enterprise Funds 6
Combined Statement of Cash Flows - Enterprise Funds 7
Statement of Changes in Plan Net Assets - Pension Trust Fund 8
Notes to General Purpose Financial Statements 9
Required Supplementary Information 23
COMBINING, INDIVIDUAL FUND AND ACCOUNT GROUP STATEMENTS
AND SCHEDULES
GENERAL FUND:
Comparative Balance Sheets 24
Schedule of Revenues and Expenditures - Budget and Actual 25
ENTERPRISE FUNDS:
Combining Balance Sheets 27
Combining Statements of Revenues, Expenses and Changes in Retained Earnings 28
Combining Statements of Cash Flows 29
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 30
Schedule of General Fixed Assets By Function and Activity 31
Schedule of Changes in General Fixed Assets By Function and Activity 32
GENERAL LONG-TERM DEBT ACCOUNT GROUP:
Schedule of General Long -Term Debt 33
III. STATISTICAL SECTION
General Governmental Expenditures by Function 34
General Governmental Revenues by Source 35
Utility Tax Revenue By Source; Franchise Fee Revenue by Source 36
Property Tax Levies and Collection 37
Assessed and Estimated Actual Value of Taxable Property 38
Property Tax Rates Direct and Overlapping Governments 39
Ratio of Annual Debt Service Expenditures for Net Bonded Debt to
General Governmental Expenditures 40
Schedule of Direct and Overlapping Debt - General Obligation Bonds 41
Ratio of Net Bonded Debt to Assessed Value and Per Capita 42
Demographic Statistics 43
Property Value, Construction and Bank Deposits 44
Principal Taxpayers 45
Miscellaneous Statistical Data 46
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
47
49
Schedule of Findings 51
INTRODUCTORY SECTION
February 11, 1999
VILLAGE OF KEY BISCAYNE
Office of the Village Manager
Village Council
Joe I. Rasco, Mayor
Gregory C. Han, Vice Mayor
Scott Bass
Martha Fdez-Leon Broucek
Alan H. Fein
Mortimer Fried
Robert Oldakowski
Village Manager
C. Samuel Kissinger
Honorable Mayor, Members of the Village Council and 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, 1998, 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 1997 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 combining, individual fund and
account group financial statements and schedules. The statistical section includes unaudited
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 (GASB) 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:
85 West McIntyre Street • Key Biscayne, Florida 33149 • (305) 365-5511 • Fax (305) 365-8936
Building, Zoning and Planning, Emergency Services, Recreation, Public Works, Finance
and Administrative Services, 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, separate island connected to the
mainland south of downtown Miami by the Rickenbacker Causeway. The 1990 Census population
was 8,854 and another 4,000 reside on the island seasonally.
The Village is 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 Miami -Dade County, and to the south
by Bill Baggs Cape Florida State Recreation Area; a park of approximately 600 acres.
Dislocation events and their impact
On Monday, August 24, 1992, Hurricane Andrew hit Key Biscayne making an impact that will be
felt for decades. As of September 30, 1997, all of the work authorized by FEMA has been
completed and 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.
On Tuesday, September 28, 1998, the fringes of Hurricane Georges hit the Village. Damages were
mostly limited to vegetation. A reimbursable claim for emergency protective measures and debris
cleaning has been filed with FEMA and is currently pending.
Major 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
ii
providing solid waste and recycling collection services to single family residences for $199 versus
$399 previously charged by Miami -Dade County Department of Solid Waste Management. The
current charge for the village residents is still $199 and Miami -Dade County is $349.
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
overexpended 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 judgment 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. Auditor General of the State of Florida
4. Charter of the Village of Key Biscayne
5. 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
iii
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 (Budgetary Basis)
Sources
Utility Taxes
Franchise Fees
Property Taxes
Intergovernmental
Licenses and Permits
Charges for Services
Other
Interest
Grants
Total Revenue
EXPENDITURES AND OTHER USES
Function
General Government
Public Works
Building, Zoning & Planning
Parks and Recreation
Public Safety
Debt Service
Non -Departmental
Transfers to Capital Improvement Fund
Total Expenditures & Transfers
FY 1998 FY 1997 Net Changes
$1,514,697 $1,555,812 ($ 41,115)
709,067 667,815 41,252
6,963,900 6,495,465 468,435
843,812 766,638 77,174
1,003,768 531,401 472,367
191,568 97,423 94,145
38,300 64,511 (26,211)
233,654 248,646 (14,992)
163,107 301,237 (138,130)
$11.661.873 $10.728.948 $ 932.925
(Budgetary Basis)
FY 1998
$ 813,393
600,040
931,618
265,834
5,419,974
1,132,824
603,601
1,426,000
$11.193.284
FY 1997
$ 680,075
634,993
804,184
243,451
5,192,293
1,135,901
613,982
1,171,150
,$10.476.029
Net Changes
$ 133,318
(34,953)
127,434
22,383
227,681
(3,077)
(10,381)
254,850
,$ 717.255
Capital Projects Fund
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
from the General Fund.
iv
Enterprise 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. The three enterprise funds
are:
1. Stormwater Utility System
2. Solid Waste
3. Sanitary Sewer System
Major Projects for Fiscal Year 1997 and 1998
The Stormwater Utility Project, which began during the 1994-1995 Fiscal Year, was completed and
capitalized during this fiscal year at a cost of $9,598,409. Depreciation expense of $269,729 was
recorded during Fiscal Year 1998.
The Village Council established a budget for the Sanitary Sewer System during the fiscal year. A
state loan is being negotiated with the Florida Department of Environmental Protection to finance
the construction of the system. Funds for the pre -construction, design phase were received and the
engineering firm of Post Buckley Schuh & Jernigan, Inc. was hired to design the system. Plans and
specifications have been completed and approved by all appropriate agencies.
Fiduciary Fund
The Fiduciary Fund type 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, 1998, the following are recorded as a Fiduciary Fund:
Pension Trust Fund
The Village Council, on October 1, 1997, established a Retirement Plan for sworn police and
firefighters in compliance with Part VII, Chapter 112, Florida Statutes, and Section 14, Article X of
the State Constitution. Each member is required to contribute 14% of his/her salary until September
30, 2000. This rate will be adjusted each year thereafter, based on the most recent actuarial valuation
of the Plan. The Plan also receives funding from the State of Florida under F.S. 175 and 185. The
net assets in the Plan as of September 30, 1998 were $424,227.
Other Plans Administered by the Village
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 $2,596,722 in investments as of September 30, 1998.
v
Also, 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, 1998, were $1,107,175. In accordance with GASB 32 and
because the Village does not have fiduciary responsibility for this plan, no disclosure is required.
General Fixed Assets
The General Fixed Assets of the Village are those assets used in the performance of general
governmental functions. In accordance with generally accepted accounting principles for local
governments, the Village does not record deprecation on general fixed assets nor does it record
infrastructure assets such as 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, 1998, the general fixed assets acquired amount to $17,356,576. Major additions for
FY 1997-98 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, 1998, was
$5,985,000; 2) A $7,200,000 Bond Anticipation Note at 4.89% from the SunTrust Bank and First
Union National Bank for stormwater infrastructure, matured in 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 has several cash management vehicles 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 to maximize earnings
potential.
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, 1998, had a balance of $130,330 in
the General Fund and $3,155 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
vi
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 Statutes 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 compliddVitlikai d the
auditor's reports have been included in this CAFR.
CERTIFICATE OF ACHIEVEMENT FOR EXCELLENCE IN FINANCIAL REPORTING
The Government Finance Officers Association of the United States and 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, 1997. The Village
has received this award each year since 1992.
The Government Finance Officers Association of the United States and 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, 1997. The award has been received since
1993.
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, 1998.
ACKNOWLEDGMENTS
The preparation of this report could not have 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 note of thanks and appreciation is also extended to the firm of
vii
Rachlin Cohen & Holtz for their professional approach and high standards in conduct of their
independent audit of the Village's financial records and transactions.
Respectfully submitted,
C. Samuel singer
Village Manager
'--/(
as N. Zanni
Erector of Finance and Administrative Services
CSK\TNZ\cpg
vii'
VILLAGE OF KEY BISCAYNE, FLORIDA
VILLAGE OFFICIALS
VILLAGE COUNCIL
Joe I. Rasco, Mayor
Gregory C. Han, Vice -Mayor Martha Fdez-Leon Broucek
Mortimer Fried Alan H. Fein
Scott Bass Robert Oldakowski
VILLAGE MANAGER
C. Samuel Kissinger
VILLAGE CLERK
Conchita H. Alvarez, CMC
FINANCE DIRECTOR
Thomas N. Zannis, CPA
VILLAGE ATTORNEY
Weiss, Serota, Helfman, Pastoriza & Guedes, P.A.
VILLAGE AUDITORS
Rachlin Cohen & Holtz LLP
Certified Public Accountants
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VILLAGE OF KEY BISCAYNE
ORGANIZATIONAL CHART
The Village Manager, who reports directly to the Village Council, manages the Village of Key
Biscayne's day-to-day operations. The Village Manager appoints the department heads of the five
departments.
VOTERS
OF
KEY BISCAYNE
VILLAGE
COUNCIL
(7)
Local Planning
Agency
Village Clerk
(1.5) _
Special Master
(2)
VILLAGE
MANAGER
(2)
Assistant to
— the Manager
(1)
Village
Attorney
Police! Fire
Retirement
Board (5)
DEPARTMENT OF
BUILDING,
ZONING AND
PLANNING (12)
Building
Zoning
Planning
AeCotaaence
DEPARTMENT OF
EMERGENCY
SERVICES
(71.5)
Fire Rescue
Police
DEPARTMENT OF
RECREATION
(3)
Special Events]
Sports and
Athletics
Programs and
—Ij Tours
DEPARTMENT OF
PUBLIC WORKS
(2)
Village Engineer
—I Contract Supervisor
Stormwater
Management
Refuse Collection
and Recycling
Maintenance
DEPARTMENT OF
FINANCE AND
ADMINISTRATIVE
SERVICES -
(2)
Finance/
Accounting
Personnel
Benefits
Risk
Management
-X-
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, 1997
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.
D
President
yi, . 2., a, C'
Executive Director
CERTIFIED PUBLIC ACCOLNTANTS & CONSULTA\TS
A I'artner,hip Including I'rote,,ional AS,uciat On,
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, 1998, 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.
Except as discussed in the following paragraph, 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.
Governmental Accounting Standards Board Technical Bulletin 98-1, Disclosures about Year 2000
Issues, requires disclosures of certain matters regarding the year 2000 issue. The Village has included
such disclosures in Note 13. Because of the unprecedented nature of the year 2000 issue, its effects and
the success of related remediation efforts will not be fully determinable until the year 2000 and
thereafter. Accordingly, insufficient audit evidence exists to support the Village's disclosures with
respect to the year 2000 issue made in Note 13. Further, we do not provide assurance that the Village is
or will be successful in whole or in part, or that parties with which the Village does business will be year
2000 ready.
In our opinion, except for the effects of such adjustments, if any, as might have been determined to be
necessary had we been able to examine evidence regarding year 2000 disclosures, the general purpose
financial statements referred to above present fairly, in all material respects, the financial position of the
Village as of September 30, 1998, 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 January 14, 1999
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.
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Honorable Mayor, Village Council and Village Manager
Village of Key Biscayne, Florida
Page Two
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, except for the effects of such adjustments, if any, as might have been determined to
be necessary had we been able to examine evidence regarding year 2000 disclosures, 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.
Miami, Florida
January 14, 1999
GENERAL PURPOSE
FINANCIAL STATEMENTS
(Combined Statements - Overview)
VILLAGE OE KEY BISCAYNE, FLORIDA
COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUPS
SEPTEMBER 30, 1998
(WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1997)
Governmental Proprietary Fiduciary Account
Fund Types Fund Types Fund Type Groups,
Trust General General Totals
Capital and Fixed Long -Term (Memorandum Only)
General Protects Enterprise Agency Assets Debt 1998 1997
ASSETS AND OTHER DEBITS
Cash and cash equivalents $ 2,589,105 $ 275,017 $ 1,747,586 $ 16,292 $ - $ - $ 4,628,000 $ 4,907,405
investments 1,037,533 3,414,075 - 410,185 - - 4,861,793 4,920,335
Due from other governments 27,220 - - - 27,220 96,642
Due from other funds 25,085 637,097 8,562 670,744
Property taxes receivable 24,806 - 24,806 34,397
Accounts receivable 243,962 630,552 874,514 306,965
Interest receivable - 152,952
Prepaid loan fees and capitalized interest 4,413 43,962 - 48,375 -
Fixed assets 9,860,418 17,356,576 - 27,216,994 26,802,314
Amount to be provided for retirement of general long-term debt - - - 6,890,375 6,890,375 7,462,477
Total assets and other debits $ 3,947,711 $ 4,330,602 $ 12,291,080 $ 426,477 $ 17,356,576 $ 6,890,375 $ 45,242,821 $ 44,683,487
LIABILITIES, EQUITY AND OTHER CREDITS
Liabilities.
Accounts payable and accrued liabilities
Retainage payable
Deposits and performance bonds
Deferred revenue
Due to other funds
Deferred benefits payable
Revolving loan
Bond anticipation notes
Compensated absences payable
Revenue bonds payable
Total liabilities
Equity and other credits.
Investment in general fixed assets
Contributed capital
Retained earnings
Fund balance:
Reserved
Unreserved
Designated
Undesignated
Total equity and other credits
Total liabilities, equity and other credits
$ 157,465 $ 94,624 $ 264,671 $ 2,250 $ - $ $ 519,010 $ 486,021
77,033 11,750 - 88,783 121,813
11,027 - - 11,027 27,083
- - 72,053
176,000 24,507 470,237 670,744
- 892,910
723,762 - 723,762
- 7,200,000 - 7,200,000 7,200,000
905,375 905,375 622,477
5,985,000 5,985,000 6,840,000
344 492 196,164 8,670,420 2,250 6,890,375 16,103,701 16,262,357
17,356,576 17,356,576 17,239,211
2,682,901 2,682,901 2,682,901
937,759 - 937,759 1,472,470
3,177,219 4,134,438 424,227 - 7,735,884 5,648,712
426,000 - - 426,000 523,815
854,021
3,603,219 4,134,438 3,620,660 424,227 17,356,576 29,139,120 28,421,130
$ 3,947,711 $ 4,330,602 $ 12,291,080 $ 426,477 $ 17,356,576 $ 6,890,375 $ 45,242,821 $ 44,683,487
See notes to general purpose financial statements
-3-
VILLAGE OF KEY BISCAYNE, FLORIDA
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES
FISCAL YEAR ENDED SEPTEMBER 30, 1998
(WITH COMPARATIVE TOTALS FOR FISCAL YEAR ENDED SEPTEMBER 30, 1997)
Capital Totals
General Projects (Memorandum Only)
Fund Fund 1998 1997
Revenues:
Property taxes $ 6,963,900 $ - $ 6,963,900 $ 6,495,465
Utility taxes 1,514,697 - 1,514,697 1,555,812
Franchise fees 709,067 709,067 667,815
Intergovernmental 843,812 843,812 766,638
Licenses and permits 1,003,768 1,003,768 531,401
Charges for services 191,568 191,568 97,423
Other 38,300 38,300 64,511
Interest 233,654 158,823 392,477 402,124
Grants 163.107 163.107 392.717
Total revenues 11.661.873 158.823 11.820.696 10,973.906
Expenditures:
Current:
General government 825,952 1,530,311 2,356,263 1,491,797
Public works 828,287 828,287 660,780
Building, zoning, and planning 939,087 939,087 775,938
Parks and recreation 255,704 255,704 239,029
Public safety 5,278,315 5,278,315 5,017,882
Non -departmental 587,809 587,809 650,393
Capital outlay 186,297 186,297 248,656
Debt Service:
Principal 855,000 855,000 820,000
Interest 277.825 277.825 315.901
Total expenditures 10.034.276 1.530,311 11.564.587 10,220.376
Excess (deficiency) of revenues over expenditures 1.627.597 (1,371,488) 256,109 753.530
Other financing sources (uses):
Operating transfers in 1,881,000 1,881,000 1,531,150
Operating transfers out (1.426.000) - (1,426,000) (1,341.150)
Total other financing sources (uses) (1.426.000) 1,881,000 455.000 190,000
Excess of revenues and other financing sources
over expenditures and other fmancing uses 201,597 509,512 711,109 943,530
Fund balances, beginning 3.401.622 3.624.926 7.026,548 6,083,018
Fund balances, ending $ 3,603,219 $ 4,134,438 $ 7,737,657 $ 7,026,548
See notes to seneral purpose financial statements
VILLAGE OF KEY BISCAYNE, FLORIDA
STATEMENT OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL - GENERAL FUND
FISCAL YEAR ENDED SEPTEMBER 30, 1998
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, zoning and planning
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
Budgetary
Basis
Budget Actual
$ 6,911,845 $ 6,963,900
1,386,000 1,514,697
692,000 709,067
763,500 843,812
726,450 1,003,768
106,000 191,568
600 38,300
200,000 233,654
141,500 163,107
10,927,895 11,661,873
712,210 813,393
695,010 600,040
944,592 931,618
311,253 265,834
5,523,533 5,419,974
724,420 603,601
855,000 855,000
279,585 277,824
10,045,603 9,767,284
Variance
Favorable
(Unfavorable)
$ 52,055
128,697
17,067
80,312
277,318
85,568
37,700
33,654
21,607
733,978
(101,183)
94,970
12,974
45,419
103,559
120,819
1,761
278,319
882,292 1,894,589 1,012,297
543,708 (543,708)
(1,426,000) (1,426,000) -
(882,292) (1,426,000) (543,708)
$ - $ 468,589 $ 468,589
See notes to general purpose financial statements.
-5-
VILLAGE OF KEY BISCAYNE, FLORIDA
COMBINED STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS
ENTERPRISE FUNDS
FISCAL YEAR ENDED SEPTEMBER 30, 1998
(WITH COMPARATIVE TOTALS FOR FISCAL YEAR ENDED SEPTEMBER 30, 1997)
1998 1997
Operating revenue
Operating expenses:
General and administrative costs
Bad debt expense
Depreciation
Operating income
Non -operating revenue (expense):
Interest income
Interest expense
Total non -operating expense
Income (loss) before operating transfers
Operating transfers out
Net income (loss)
Retained earnings, beginning
Retained earnings, ending
$ 722,127 $ 800,953
284,007
15,000
269.729
264,547
153,391 536,406
85,138 205,876
(318,240) (338,760)
(233.102) (132,884)
(79,711) 403,522
(455.000) (190.000)
(534,711) 213,522
1.472,470 1.258.948
$ 937,759 $ 1,472,470
See notes to general purpose financial statements.
VILLAGE OF KEY BISCAYNE, FLORIDA
COMBINED STATEMENT OF CASH FLOWS
ENTERPRISE FUNDS
FISCAL YEAR ENDED SEPTEMBER 30, 1998
(WITH COMPARATIVE TOTALS FOR FISCAL YEAR ENDED SEPTEMBER 30, 1997)
Cash flows from operating activities:
Operating income
Adjustments to reconcile operating income to net
cash provided by operating activities:
Depreciation
Provision for uncollectible accounts
Changes in assets and liabilities:
(Increase) decrease in:
Accounts receivable
Interest receivable
Due from other governments
Increase (decrease) in:
Accounts payable
Retainage payable
Due to other funds
Total adjustments
Net cash provided by operating activities
Cash flows from non -capital financing activities:
Operating transfers out
Net cash used by non -capital financing activities
Cash flows from capital and related financial activities:
Payments for construction in progress
Net proceeds from revolving loan
Interest paid
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 and cash equivalents
Cash and cash equivalents, beginning
Cash and cash equivalents, ending
1998
1997
$ 153,391 $ 536.406
269,729
15,000
(523,407)
8,442
(8,562)
91,639
(110,063)
470.237
213,015
(30,315)
133,319
89,677
(311,430)
121,813
3.064
366.406 539.470
(455,000) (190.000)
(455.000) (190.000)
(567,044) (3,778,943)
679,800
(318,240) (338.760)
(205,484) (4,117.703)
85.138
4,291,789
205,876
85,138 4,497.665
(208,940) 729,432
1.956.526 1.227.094
$ 1,747,586 $ 1,956,526
See notes to general purpose financial statements.
VILLAGE OF KEY BISCAYNE, FLORIDA
STATEMENT OF CHANGES IN PLAN NET ASSETS
PENSION TRUST FUND
FISCAL YEAR ENDED SEPTEMBER 30, 1998
ADDITIONS
Contributions:
Employee $ 403,614
State 32,526
Total contributions 436,140
Investment income:
Investment earnings
Less investment expenses
Net investment income
Total additions
12,515
L205
11,310
447.450
DEDUCTIONS
Refunds 3,194
Administrative expenses 20,029
Total deductions 23,223
Net increase 424,227
Net assets held in trust for pension benefits:
Beginning of year
End of year $ 424,227
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, 1998
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, building,
zoning and planning functions, sanitation and stormwater management. The Village does not
provide educational or hospital facilities. Those services are provided by the Miami -Dade
County School Board and Miami -Dade County, respectively.
The basic criteria for determining whether another organization should be included in the
Village's reporting entity 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.
_n_
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, zoning and planning 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.
in
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Proprietary Fund Type
Proprietary funds 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
three enterprise funds; a stormwater utility fund, a solid waste fund and a sanitary
sewer construction 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:
Trust funds are custodial in nature and do not present results of operations or have a
measurement focus. Trust funds are accounted for in a manner similar to proprietary
fund types. Trust funds are used to account for assets held by the Village in a trustee
capacity for individuals, private organizations, other governments, and/or other funds.
The Village has one trust fund which is a pension trust fund that accounts for a defined
benefit pension 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.
-11-
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, 1998, there were approximately $300,000 in supplemental appropriations.
(e) Formal budgetary integration is employed as a management control device for the general
fund.
(0
(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. 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.
Deposits include cash on hand and certificates of deposit.
Village administration is authorized to invest in those instruments authorized by the Florida
Statutes. Investments, which consist of funds held with the State Board of Administration
Investment Pool, are reported at cost, which is fair value.
-12-
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
5. 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 for the stormwater utility
system project. The fixed assets are stated at cost and depreciated based on the straight-line
method over the estimated useful lives, which range between 20 and 45 years.
6. Interfund Receivables/Payables
Transactions between funds that are representative of lending/borrowing arrangements at the
end of the fiscal year are reported as due to/from other funds.
7. Compensated Absences
It is the Village's policy to permit employees to accumulate earned but unused vacation and
sick pay and compensatory time within specified limits. The accumulated unpaid vacation
and sick leave and compensatory time 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.
-13-
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
9. Reserves and Designations (Continued)
Unreserved, undesignated fund balance is the portion of fund equity available for any lawful
use.
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 1997 columns have been reclassified to conform to 1998
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, 1998, the following reconciles expenditures reported on a GAAP basis to
the budgetary basis:
Excess of revenues and other financing sources over expenditures and other
financing uses (budgetary basis) $468,589
Unbudgeted expenditures of reserves (266,992)
Excess of revenues and other financing sources over expenditures and other
financing uses (GAAP) $201,597
-14-
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
NOTE 3. DEPOSITS AND INVESTMENTS
At September 30, 1998, the Village maintained deposits including cash on hand (including cash
in interest bearing accounts) and certificates of deposit with book balances of $4,494,515 and
$4,451,608, respectively.
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 deposits are deemed as
insured or collateralized and are therefore classified as credit 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.
At September 30, 1998, the Village's investments balances, at fair value, were as follows:
Investments not subject to categorization:
Mutual funds/defined benefit pension plan
State Board of Administration investment pool
$ 410,184
133,485
$ 543,669
A reconciliation of cash and investments as shown on the combined balance sheet is a follows:
Carrying amount of deposits
Carrying amount of investments
Cash and cash equivalents
Investments
$8,946,123
543,669
$9,489,792
$4,628,000
4,861,792
$9,489,792
_15_
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 Miami -Dade County, with remittances to the
Village of their proportionate share of collected taxes. Taxes for the fiscal year beginning
October 1 are billed in the month of November, subject to a 1% per month discount for the
period November through February, and are due no later than March 31. On April 1, unpaid
amounts become delinquent with interest and penalties added thereafter. Beginning June 1, tax
certificates representing delinquent taxes with interest and penalties are sold by Miami -Dade
County, with remittance to the Village for its share of those receipts. At September 30, 1998,
there were no significant delinquent taxes.
NOTE 5. FIXED ASSETS
The following is a summary of changes in general fixed assets during the year:
Land
Buildings
Improvements other than buildings
Equipment
Furniture and fixtures
Total
Balance
September 30,
1997
$13,240,657
587,076
966,374
2,345,931
99,173
$17,239,211
Balance
September 30,
Additions Deletions 1998
$ 8,620
143,152
13,132
$164,904
$ - $13,240,657
587,076
974,994
47,539 2,441,544
112,305
$47,539 $17,356,576
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, 1998:
Construction in progress
Stormwater utility system
Less accumulated depreciation
Balance Additions
September 30, and
1997 Transfers
$9,563,104
9,563,104
$9,563,104
$ 567,043
9,868,138
10,435,181
269,729
$10,165,452
Deletions
and
Transfers
Balance
September 30,
1998
$9,868,138 $ 262,009
9,868,138
9,868,138 10,130,147
269,729
$9,868,138 $ 9,860,418
-16-
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
NOTE 6. LONG-TERM DEBT
The following is a summary of changes in general long-term debt account group during the year:
Balance Balance
September 30, September 30,
1997 Additions Payments 1998
Revenue bonds payable $6,840,000 $ - $855,000 $5,985,000
622.477 282.898 - 905,375
Compensated absences payable
Revenue Bonds
$7,462,477 $282,898 $855,000 $6,890,375
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 $895,000 in fiscal 1999 to $1,105,000 in fiscal 2004. Interest accrues at 4.36% per annum.
Debt service requirements to maturity is as follows:
Principal Interest Total
Fiscal years ending September 30:
1999 $ 895,000 $241,435 $1,136,435
2000 935,000 201,541 1,136,541
2001 975,000 159,903 1,134,903
2002 1,015,000 116,521 1,131,521
2003 1,060,000 71,286 1,131,286
2004 1,105,000 24,089 1,129,089
$5,985,000 $814,775 $6,799 775
Bond Anticipation Notes
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 entire
principal amount including interest of $154,656 is due at maturity.
Revolving Loan
During the fiscal year ended September 30, 1998, the Village obtained financing for the
planning and engineering of the proposed sanitary sewer construction project under a State
Revolving Fund Loan. A loan agreement in the amount of $723,762, including capitalized
interest and prepaid servicing fees, was entered into in June 1996, but the proceeds were
received in fiscal year 1998. The loan is payable in semiannual payments over 20 years
beginning on the earlier of the commencement of the construction project or April 15, 2000 at an
interest rate of 2.56% per annum. Therefore, annual debt service payments have not yet been
determined.
1 -7
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
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 adverse effect on
the financial condition of the Village.
Commitments
The Village is obligated under a non -cancelable operating lease for office space until October 1,
1998. Rent expense was $106,035 for fiscal year 1998. Subsequent to October 1, 1998, the
Village is leasing their office space on a month -to -month basis.
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 grant expenditures, if any, would not have a
material adverse effect on the financial condition of the Village.
NOTE 8. RESERVED/DESIGNATED FUND BALANCES
As of September 30, 1998, fund balances in the general fund and capital projects fund have been
reserved or designated for the following purposes:
Reserved Fund Balances
General fund:
Supplemental fire aid $ 125,000
Beach improvements 24,600
Recreation facilities 243,500
Community center 30,100
Beach park and walk 259,700
Compensated absences 670,000
Subsequent year's budget 541,000
Emergencies 1,283,319
$3,177,219
1R
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
NOTE 8. RESERVED/DESIGNATED FUND BALANCES (Continued)
Reserved Fund Balances (Continued)
Capital projects fund:
Capital improvements $4,130,025
Prepaid Items 4,413
$4,134,43 8
Pension Trust Fund:
Employees pension benefits $ 424,227
Designated Fund Balances
General fund:
Police/fire equipment and building $ 40,000
Community grants, maintenance and improvements 51,000
Professional fees 60,000
Inspector fees 275,000
$ 426,000
NOTE 9. DEFERRED COMPENSATION PLAN
The Village implemented Government Accounting Standards Board (GASB) No. 32 Accounting
and Financial Reporting for IRC Sec. 457 Deferred Compensation Plans earlier than the
effective date issued by GASB (periods beginning after December 31, 1998). In accordance with
GASB No. 32, the Village has amended the 457 plan document and set up the administration of
the plan under a trust agreement. As such, the Village no longer has access to the assets of the
plan and the assets are not recorded in the Village's books and records. Therefore, the plan
assets are for the exclusive benefit of the participants or their beneficiaries.
NOTE 10. DEFINED CONTRIBUTION PLANS
The Village as a single -employer contributes to the Village of Key Biscayne Money Purchase
Plans, which are defined contribution plans created in accordance with Internal Revenue Code
Section 401(a). Under one Plan, which is available to Village employees, the Village contributes
11% and the employees contribute 6%. Under the second plan, which is available only to sworn
or certified police officers and firefighters, the Village contributes 11% and there is no employee
contribution. Beginning October 1, 1997, the police officers and firefighters, which elected to
participate in the defined benefit plan (see Note 11), were no longer eligible to contribute to the
401(a) plan. Employer contributions for fiscal year ended September 30, 1998 were $396,352
while the employee contributions were $63,601. Amendments to the Plan must be authorized by
the Village Council.
-19-
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
NOTE 11. DEFINED BENEFIT PENSION PLAN
Plan Description
Effective October 1, 1997, the Village established a single -employer Public Employee
Retirement System (PERS) to provide pension benefits for its police officers and firefighters.
The PERS is considered to be part of the Village's financial reporting entity and is included in
the Village's financial reports as a pension trust fund. The latest available actuarial valuation is
as of October 1, 1996. The October 1, 1996 actuarial valuation was a proposed valuation
prepared by the actuary prior to commencement of the Plan (October 1, 1997). Therefore, this is
the latest actuarial valuation. An actuarial valuation will be prepared as of October 1, 1998. The
PERS does not issue a separate financial report of the Plan.
Under this plan, all full-time police officers and firefighters employed by the Village are
eligible for participation. The monthly retirement benefit is equal to 2% of the average final
compensation for each year of service. The calculation for the average final compensation is
computed as one -twelfth of the average salary of the five best years of the last ten years of
credited service. Credited service is determined by the total number of years employed by the
Village since August 1, 1993.
Members are vested after 5 years of service. Vested employees may retire at the earlier of
age 55 and the completion of five years of credited service or the age of 52 and the
completion of 25 years of credited service.
Funding Policy
From the effective date of the Plan, October 1, 1997 through September 30, 2000, the
contribution by each member of the Plan is 14%. The rate will be adjusted each year thereafter
to an amount equal to the total cost for the year, as determined by the most recent actuarial
valuation, less the amount of revenue received from the State of Florida pursuant to Chapters
175 and 185 of the Florida Statutes. The minimum member contribution rate is 8%. The Plan is
designed to limit the Village's exposure to contribute to the Plan.
Annual Pension Cost and Net Pension Asset
As of October 1, 1997 (date of transition and effective date of Plan), there was no net pension
obligation. The annual pension cost and net pension asset for the current year was as follows:
Annual required contribution
Interest on net pension asset
Adjustment to annual required contribution
Annual pension cost
Contributions made
Increase in net pension asset
Net pension asset, beginning of year
Net pension asset, end of year
32,526
32,526
$32,526
-20-
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
NOTE 11. DEFINED BENEFIT PENSION PLAN (Continued)
Annual Pension Cost and Net Pension Asset (Continued)
The annual required contribution for the current year was determined as part of the October 1,
1996 actuarial valuation using the aggregate actuarial cost method. This method does not
identify and separately amortize unfunded actuarial liabilities. The actuarial assumptions
included (a) 9% investment rate of return (net of administrative expenses) and (b) projected
salary increases ranging from 6% per year. Both (a) and (b) included an inflation component of
4%. The assumptions did not include post -retirement benefit increases. The actuarial value of
assets was determined using the difference between actual and expected return recognized over
five years.
Trend Information
Fiscal Year Annual Pension Percentage of
Ended Cost (APC) APC Contributed
9/30/98 $ N/A
NOTE 12. INTERFUND RECEIVABLES AND PAYABLES
Due to/from other funds:
Receivable Fund
General
General
Capital Improvement Fund
Capital Improvement Fund
Capital Improvement Fund
Stormwater Utility
Stormwater Utility
NOTE 13. YEAR 2000 ISSUE
Payable Fund
Capital Improvement Fund
Stormwater Utility
General
Stormwater Utility
Sanitary Sewer
Sanitary Sewer
Solid Waste
Net Pension
Asset
$32,526
Amount
$ 24,507
578
176,000
455,000
6,097
3,562
5,000
$670,744
The year 2000 issue is the result of shortcomings in many electronic data processing systems and
other electronic equipment that may adversely affect the Village's operations as early as fiscal
year 1999.
The Village has identified certain computer systems and other electronic equipment that may be
affected by the year 2000 issue and that are necessary to conducting Village operations. All of
these systems and equipment except for the financial accounting and reporting data are in the
assessment stage. The financial accounting and reporting system is in the validation testing
phase. All of the systems are to be remediated by in-house staff, therefore, there are no outside
contracted amounts for this project as of September 30, 1998.
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
NOTE 13, YEAR 2000 ISSUE (Continued)
Because of the unprecedented nature of the year 2000 issue, its effects and the success of the
related remediation efforts will not be fully determinable until the year 2000 and thereafter,
management cannot assure that the Village is or will be year 2000 compliant, that the Village's
remediation efforts will be successful in whole or in part, or that parties with whom the Village
does business will be year 2000 compliant. Management anticipates being year 2000 compliant
prior to January 1, 2000.
REQUIRED SUPPLEMENTARY INFORMATION
VILLAGE OF KEY BISCAYNE, FLORIDA
REQUIRED SUPPLEMENTARY INFORMATION
PENSION TRUST FUND
SCHEDULE OF CONTRIBUTIONS FROM OTHER CONTRIBUTING ENTITIES
Year Annual
Ended Required State Percentage
September 30. Contribution Contribution Contributed
1998 $ $ 32,526 N/A
The information presented in the required supplemental schedules was determined as part of the actuarial
valuation at the date indicated. Additional information as of the latest actuarial valuation follows.
Valuation date 10/1/96
Actuarial cost method Aggregate actuarial cost method
Amortization method N/A
Remaining amortization period N/A
Asset valuation method None on the valuation date
Actuarial assumptions:
Investment rate of return* 9% per year compounded annually, net of investment
related expenses
Projected salary increases* 6.00%
Cost of living adjustments N/A
*Includes inflation at 4%
-23-
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, 1998
(WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1997)
1998 1997
ASSETS
Cash and cash equivalents $ 2,589,105 $ 1,387,500
Investments 1,037,533 2,027,425
Due from other governments 27,220 96,642
Due from other funds 25,085
Property taxes receivable 24,806 34,397
Accounts receivable 243,962 184,820
Interest receivable 82,581
Total assets $ 3,947,711 $ 3,813,365
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable and accrued liabilities $ 157,465 $ 312,607
Deposits and performance bonds 11,027 27,083
Due to other funds 176,000
Deferred revenue 72,053
Total liabilities 344,492 411,743
Fund balances:
Reserved for:
Supplemental fire aid 125,000 118,820
Beach improvements 24,600 23,653
Beautification of Crandon Boulevard 22,347
Recreation facilities 243,500 411,380
Grant audits - 541,024
Community center 30,100 28,930
Beach park and walk 259,700 263,925
Compensated absences 670,000 205,000
Subsequent year's budget 541,000 408,707
Emergencies 1,283,319
3,177,219 2,023,786
Unreserved:
Designated for:
Police/fire equipment and building 40,000 60,546
Community grants, maintenance and improvements 51,000 51,642
Future personnel costs - 280,239
Professional fees 60,000 56,388
Inspector fees 275,000 75,000
426,000 523,815
Unreserved, undesignated - 854,021
Total fund balances 3,603,219 3,401,622
Total liabilities and fund balances $ 3,947,711 $ 3,813,365
VILLAGE OF KEY BISCAYNE, FLORIDA
GENERAL FUND
SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL
FISCAL YEAR ENDED SEPTEMBER 30, 1998
Budgetary Variance
Basis Favorable
Budget Actual (Unfavorable)
Revenues:
Property taxes
$ 6.911,845 $ 6,963,900 $ 52.055
Utility taxes 1.386,000 1,514,697 128,697
Franchise fees 692.000 709,067 17.067
Intergovernmental:
State shared revenue 763.500 843,812 80,312
Licenses and permits:
Occupational licenses
Building permits
37,000
689,450
726.450
25,749
978,019
(11,251)
288,569
1,003,768 277,318
Charges for services 106.000 191.568 85.568
Other:
Miscellaneous 600 38.300 37.700
Interest 200,000 233,654 33.654
Grants:
Other grants 141,500 163,107 21.607
Total revenue $ 10,927,895 $ 11,661,873 $ 733,978
(Continued)
VILLAGE OF KEY BISCAYNE, FLORIDA
GENERAL FUND
SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL
(Continued)
FISCAL YEAR ENDED SEPTEMBER 30, 1998
Budget
Budgetary Variance
Basis Favorable
Actual (Unfavorable)
Expenditures:
General government:
Elected officials $ 18,500 $ 23,847 $ (5,347)
Administration 412,049 429,559 (17,510)
Village clerk 113,661 143,717 (30,056)
Village attorney 168,000 216,270 (48,270)
Total general government 712,210 813,393 (101,183)
Public works 695,010 600,040 94,970
Building, planning and zoning 944,592 931,618 12,974
Parks and recreation 311,253 265,834 45,419
Public safety 5,523,533 5,419,974 103,559
Non -departmental 724,420 603,601 120,819
Debt service:
Principal 855,000 855,000
Interest 279,585 277,824
1,761
1,134,585 1,132,824 1,761
Total expenditures 10,045,603 9,767,284 278,319
Transfers out 1,426,000 1,426,000 -
Total expenditures and transfers $ 11,471,603 $ 11,193,284 $ 278,319
-26-
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
stormwater system.
• Solid Waste
The solid waste fund provides collection service for trash removal. Solid waste expenses
are primarily for curbside collections.
• Sanitary Sewer Construction
The sanitary sewer construction fund accounts for the development and construction of a
municipal sanitary sewer system to the unsewered areas of the community.
VILLAGE OF KEY BISCAYNE, FLORIDA
ENTERPRISE FUNDS
COMBINING BALANCE SHEETS
SEPTEMBER 30, 1998
(WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1997)
Stormwater Sanitary
Utility Solid Sewer Totals
System Waste Construction 1998 1997
ASSETS
Current assets:
Cash and cash equivalents
Due from other funds
Accounts receivable, net
Interest receivable
Total current assets
Prepaid loan fees and capitalized interest
Fixed assets
$ 1,631,837 $ 5,160 $ 110,589 $ 1,747,586 $ 1,956,526
8,562 8,562 -
118,512 89,640 422,400 630,552 122,145
8,442
1,758,911 94,800 532,989 2,386,700 2,087,113
43,962 43,962
9,598,409 262,009 9,860,418 9,563,103
Total assets $ 11,357,320 $ 94,800 $ 838,960 $ 12,291,080 $ 11,650,216
LIABILITIES AND FUND EQUITY
Current liabilities:
Accounts payable and accrued liabilities $ 162,471 $ $ 102,200 $ 264,671 $ 173,032
Retainage payable 11,750 11,750 121,813
Due to other funds 455,578 5,000 9,659 470,237
Bond anticipation notes 7,200,000 7,200,000
Total current liabilities 7,829,799 5,000 111,859 7,946,658 294,845
Long-term debt:
Revolving loan 723,762 723,762
Bond anticipation notes - 7,200,000
Total liabilities 7,829,799 5,000 835,621 8,670,420 7,494,845
Fund equity:
Contributed capital
Retained earnings
Total fund equity
2,682,901
844,620
89,800 3,339
2,682,901
937,759
2,682,901
1,472,470
3,527,521 89,800 3,339 3,620,660 4,155,371
Total liabilities and fund equity $ 11,357,320 $ 94,800 $ 838,960 $ 12,291,080 $ 11,650,216
-97-
VILLAGE OF KEY BISCAYNE, FLORIDA
ENTERPRISE FUNDS
COMBINING STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN
RETAINED EARNINGS
FISCAL YEAR ENDED SEPTEMBER 30, 1998
(WITH COMPARATIVE TOTALS FOR FISCAL YEAR ENDED SEPTEMBER 30, 1997)
Operating revenue
Operating expenses:
General and administrative costs
Bad debt service
Depreciation
Operating income (loss)
Non -operating revenues (expense):
Interest income
Interest expense
Total non -operating revenues (expenses)
Income (loss) before transfers
Transfers out
Net income (loss)
Retained earnings, beginning
Retained earnings, ending
Stormwater
Utility
System
Solid
Waste
Sanitary
Sewer
Construction
$ 461,039 $ 261,088 $
61,050 222,904
269,729
15,000
130,260 23,184
81,441
(318,240)
(236,799)
305
305
(106,539) 23,489
Totals
1998 1997
- $ 722,127 $ 800,953
53 284,007 264,547
15,000
269,729
(53) 153,391 536,406
3,392
85,138
(318,240)
205,876
(338,760)
3,392 (233,102) (132,884)
3,339 (79,711) 403,522
(455,000) (455,000) (190,000)
(561,539) 23,489 3,339 (534,711) 213,522
1,406,159 66,311
1,472,470 1,258,948
$ 844,620 $ 89,800 $ 3,339 $ 937,759 $ 1,472,470
VILLAGE OF KEY BISCAYNE, FLORIDA
ENTERPRISE FUNDS
COMBINING STATEMENTS OF CASH FLOWS
FISCAL YEAR ENDED SEPTEMBER 30, 1998
(WITH COMPARATIVE TOTALS FOR FISCAL YEAR ENDED SEPTEMBER 30, 1997)
Stormwater Sanitary
Utility Solid Sewer Totals
System Waste Construction 1998 1997
Cash flows from operating activities:
Operating income (loss) $ 130,260 $ 23,184 $ (53) $ 153,391 $ 536.406
Adjustments to reconcile operating income (loss) to
net cash provided by (used in) operating activities.
Depreciation 269,729 - 269,729
Provision for uncollectible accounts 15,000 15,000
Change in assets and liabilities:
(Increase) decrease in:
Accounts receivable (30,060) (70,947) (422,400) (523,407) (30,315)
Interest receivable 8,387 55 - 8,442 133,319
Due from other governments (8,562) (8,562) 89,677
Increase (decrease) in:
Accounts payable 6,978 (17,539) 102,200 91,639 (311,430)
Retainage payable (110,063) (110,063) 121,813
Due to other funds 455,578 5,000 9,659 470,237
Total adjustments 591,987 (68,431) (310,541) 213,015 3,064
Net cash provided (used) by operating activities 722.247 (45.247) (310,594) 366,406 539,470
Cash flows from non -capital financing activities:
Transfers out (455,000) (455,000) (190,000)
Net cash used by non -capital
financing activities (455,000) (455,000) (190,000)
Cash flows from capital and relating financing activities:
Payments for construction in progress (305,035) (262,009) (567,044) (3,778,943)
Net proceeds from revolving loan - 679,800 679,800
Interest paid (318,240) (318,240) (338,760)
Net cash provided by (used in) capital and
related financing activities (623,275) 417,791 (205.484) (4,117,703)
Cash flows from investing activities:
Proceeds from sale of investments - - 4,291,789
Interest received 81,441 305 3.392 85,138 205.876
Net cash provided by investing activities 81.441 305 3.392 85,138 4,497,665
Net increase (decrease) in cash (274,587) (44,942) 110,589 (208,940) 729,432
Cash and cash equivalents, beginning 1,906,424 50,102 1,956,526 1,227,094
Cash and cash equivalents, ending $ 1,631,837 $ 5,160 $ 110,589 $ 1,747,586 $ 1,956,526
PS el
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, 1998
(WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1997)
1998 1997
General fixed assets:
Land $ 13,240,657 $ 13,240,657
Buildings 587,076 587,076
Improvements other than buildings 974,994 966,374
Equipment 2,441,544 2,345,931
Furniture and fixtures 112,305 99,173
Total general fixed assets $ 17,356,576 $ 17,239,211
Investment in general fixed assets by source:
General fund
Donations
$ 13,356,576 $ 13,239,211
4,000,000 4.000,000
Total investment in general fixed assets $ 17,356,576 $ 17,239,211
zn
VILLAGE OF KEY BISCAYNE, FLORIDA
SCHEDULE OF GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY
SEPTEMBER 30, 1998
Improvements Furniture
Other Than and
Land Building Buildings Equipment Fixtures Total
General government $ 4,000,000 $ $ 11,299 $ 271,504 $ 61,017 $ 4,343,820
Parks and recreation 9,240,657 942,522 129,975 2,661 10,315,815
Public safety 587.076 21.173 2.040.065 48,627 2,696,941_
$ 13,240,657 $ 587,076 $ 974,994 $ 2,441,544 $ 112,305 $ 17,356,576
VILLAGE OF KEY BISCAYNE, FLORIDA
SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY
FISCAL YEAR ENDED SEPTEMBER 30, 1998
General government
Parks and recreation
Public safety
Balance
September 30,
1997
Balance
September 30,
Additions Deletions 1998
$ 4,318,449 $ 25,371 $
$ 4,343,820
10,308,084 7,731 10,315,815
2,612,678 131,802 47,539 2,696,941
$ 17,239,211 $ 164,904 $ 47,539 $ 17,356,576
11
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, 1998
(WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1997)
1998 1997
Amount to be provided for retirement of general long-term debt $ 6.890.375 $ 7.462.477
General long-term debt payable:
Compensated absences payable
Revenue bonds payable
$ 905,375 $ 622,477
5,985,000 6.840.000
Total general long-term debt payable $ 6.890.375 $ 7,462,477
-33-
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 18,963,556
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
1998 3,671,970 (2) 5,278,315 255,704 828,287 10,034,276
(1) Includes acquisition of land for $9,238,317 for the Village Green.
(2) General government includes economic development, building, zoning and planning, debt service,
capital outlay and non -departmental expenditures.
Notes: The Village's first year of operation was fiscal year 1992.
Includes general fund only.
Zd
VILLAGE OF KEY BISCAYNE, FLORIDA
GENERAL GOVERNMENTAL REVENUES BY SOURCE
Licenses
Fiscal Property and Inter- Utility Franchise
Year Taxes Permits Governmental Taxes Fees Other (1) 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
1998 6,963,900 1,003,768 843,812 1,514,697 709,067 392,975 392,477 11,820,696
Notes: The Village's first year of operation was fiscal year 1992.
Includes general fund only.
(1) Includes charges for services, grants and other.
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
1998 989,535 288,581 36,427 3,883 196,271 1,514,697
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
1998 631,323 53,728 24,016 709,067
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
1997 1998 2,028,174,208 7,078,813 6,948,521 96.2
(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
1998 2,004,007,700 24,166,508 2,028,174,208
Source: Miami -Dade County Property Appraisers Office
Note: Assessed values equal the estimated actual value.
'10
VILLAGE OF KEY BISCAYNE, FLORIDA
PROPERTY TAX RATES
DIRECT AND OVERLAPPING GOVERNMENTS
Village of
Key Biscayne
Dade County
State School District
Debt Total Total Debt Total
Fiscal Village Operating Service County SFWMD FIND State Operating Service School
Year Millage Millage Millage Millage Millage Millage Millage Millage Millage Millage Other Total
1992 2.280 7.305 1.139 8.444 0.547 0.052 0.599 9.023 0.505 9.528 3.445 24.296
1993 4.439 7.305 0.830 8.135 0.597 0.052 0.649 9.283 0.640 9.923 1.101(1) 24.247
1994 4.101 7.253 0.817 8.070 0.497 0.049 0.546 9.503 0.842 10.345 0.443 23.505
1995 3.800 6.828 0.789 7.617 0.547 0.040 0.587 9.373 1.016 10.389 0.429 22.822
1996 3.606 6.469 0.774 7.243 0.572 0.038 0.610 9.356 1.010 10.366 0.439 22.264
1997 3.606 6.023 0.929 6.952 0.597 0.050 0.647 9.356 1.106 10.462 0.416 22.083
1998 3.606 6.023 0.837 6.860 0.597 0.047 0.644 9.182 0.978 10.160 0.434 21.704
(1) Village established its own fire district effective October 1, 1993
Source: Miami -Dade County Property Appraisers Office
-39-
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
1998 855,000 277,825 1,132,825 10,034,276 8 9
(1) Excludes bond issuance and other costs
(2) Debt service on revenue bonds
Includes general fund only
-40-
VILLAGE OF KEY BISCAYNE, FLORIDA
SCHEDULE OF DIRECT AND OVERLAPPING BONDED DEBT
GENERAL OBLIGATION BONDS
(IN THOUSANDS)
SEPTEMBER 30, 1998
Net
General Percentage Amount
Obligation Applicable Applicable
Taxable Bonded to to
Property Debt Key Key
Jurisdiction Value Outstanding Biscayne Biscayne
Village of Key Biscayne $ 2,028,174 $ 5,985 100.00% $ 5,985
Miami -Dade County (1) 87,033,519 358,571 2.33 (3) 8,355
Miami -Dade County Schools (2) 81,474,178 996.797 1.22 (3) 12.161
$ 1,361,353 $ 26,501
(1) Source: Miami -Dade County Finance Department - Taxable Property Value reflects January 1, 1998
amounts and Net General Obligation Bonded Debt outstanding figures are as of September 30, 1998.
(2) Source: School Board of Miami -Dade County Division of Accounting - Taxable Property Value reflects
September 30, 1998 amounts and Net General Obligation Bonded Debt outstanding figures are as of
June 30, 1998.
(3) Based on the percentage of the County's and School Board's tax roll valuation comprised of real and
personal property situated in the Village of Key Biscayne.
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 1,741,921,584 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
1998 9,471 (4) 2,028,174,208 5,985,000 0.30 632
(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
(4) As of April 1998 - 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)
1992 1993 1994 1995 1996 1997 1998
Miami -Dade County 10.0 7.7 7.9 6.8 7.8 7.1 6.7
Village of Key Biscayne 3.8 3.6 3.6 3.1 3.6 3.3 3.1
* Source: Bureau of Census, Income Division
** Source: State Department of Labor
VILLAGE OF KEY BISCAYNE, FLORIDA
PROPERTY VALUE, CONSTRUCTION AND BANK DEPOSITS
Residential Commercial (000s Omitted)
Total Total County Village
Fiscal Permits # of # of of Bank Bank
Year Issued Units Valuation Units Valuation Construction Deposits (1) Deposits (2)
1992 35 25 $ 638,483 10 $ 401,058 $ 1,039,541 $20,282,998 $
1993 1,737 1,633 26,822,424 104 4,383,673 31,206,097 18,146,647
1994 2,205 2,081 25,410,312 124 45,567,390 70,977,702 17,524,140
1995 2,857 2,568 33,820,503 289 2,099,661 35,920,164 17,938,762
1996 3,171 3,060 65,318,655 111 1,231,097 66,549,752 14,561,654
1997 3,570 3,402 82,481,700 168 667,328 83,149,028 34,664,829
1998 3,002 2,879 129,200,900 106 3,176,031 132,376,931 36,659,805 347,178
(1) State of Florida, Division of Banking, as of June 30 of each respective year. 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) Deposits within Village of Key Biscayne limits. Information for all years presented was not available.
Note: Village began operations during fiscal year 1992
VILLAGE OF KEY BISCAYNE, FLORIDA
PRINCIPAL TAXPAYERS
SEPTEMBER 30, 1998
Taxpayer
Ocean Club Key Biscayne
Sonesta Beach Hotel
G.B. Hotel Partnership Limited
Key Biscayne Shopping Center
Grand Bay Tower Association
Florida Power & Light
Red Dragon Sands, Ltd.
BellSouth Telecommunications, Inc.
Finivest Investment, Et. Al. (Key Colony)
Valley Forge, Ltd.
Source: Miami -Dade County Appraisers Office
Taxable
Valuation
$ 53,074,332
30,905,066
16, 842,465
9,320,894
8,660,416
5,623,841
4,977,558
4,447,716
4,163,139
2,889,623
$ 140,905,050
% of
Total
Assessed
Valuation
2.62%
1.52
.83
.46
.43
.28
.25
.22
.21
.14
6.96%
VILLAGE OF KEY BISCAYNE, FLORIDA
MISCELLANEOUS STATISTICAL DATA
SEPTEMBER 30, 1998
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: Community School
Attendance Centers 1
Number of Students 828
Number of Teachers 48
Miami -Dade County Water & Sewer Authority
Number of Customers
Average Daily Consumption
1,697
1,150,000 gallons
Sewers:
Number of Customers 922
Fire Hydrants 233
Building Permits Issued 1,431
Recreation and Culture:
Number of Parks 2
Number of Libraries I (Operated by Miami -Dade County)
Number of Tennis Centers 1
Number of Recreational Centers 1
Employees:
Full Time
97
CERTIFIED PUBLIC ACCOU\TANTS & CONSLI TA\TS
A Partner,htp Including Prote,,sional A�tinctahum
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, 1998 and for the year then ended, and have issued our report dated January 14,
1999 which was qualified because insufficient audit evidence exists to support the Village's disclosures
with respect to the year 2000. Except as discussed in the preceding paragraph, 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.
-47-
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One Southeast Third Avenue, Tenth Floor, Miami, Florida 33131 • Dade (305) 377-4228 • Fax (305) 377-8331
700 Southeast Third Avenue, Third Floor, Ft Lauderdale, Florida 33316 • Broward (954) 525-1040 • Fax (954) 525-2004
Member of tiummIt International As,ouate,, In, r1Itli Ottiic' in Principal titles Throughout the 11orlai
Al ,.I, .Fl, 1,,, ,, 1 , IL I IN II ] I' 1.1 A I , !1 l LL! I) C IIti I
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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 and management. However,
this report is a matter of public record and its distribution is not limited.
g.e.si , 41444. f-- /441 e-4 /#'
Miami, Florida
January 14, 1999
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RCH
Rachlin
Cohen &
Holtz
CERTIFIED PLBLIC ACCOLNTAvTS 8z CONSLLTA\TS
A Partnership Including Professional ,Associations
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, 1998, and have issued our report thereon dated
January 14, 1999 which was qualified because insufficient audit evidence exists to support the Village's
disclosures with respect to the year 2000.
Except as discussed in the preceding paragraph, 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, 1998, 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 1998, 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.
-49-
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One Southeast Third Avenue, Tenth Floor, Miami, Florida 33131 • Dade (305) 377-4228 • Fax (305) 377-8331
700 Southeast Third Avenue, Third Floor, Ft Lauderdale, Florida 33316 • Broward (954) 525-1040 • Fax (954) 525-2004
Member of Summit International \,senate,, In, with Otfives m I'nnupal Clues Throughout the World
, f 4n 1,1 \ i n arc . c J .I, n , r n , c
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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 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, 1998 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.
Miami, Florida
January 14, 1999
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VILLAGE OF KEY BISCAYNE, FLORIDA
SCHEDULE OF FINDINGS
FISCAL YEAR ENDED SEPTEMBER 30, 1998
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 is currently working towards year 2000 compliance.
2. Compensated Absences
The recordkeeping function for compensated absences (vacation, sick and compensatory time) is
handled by the responsible departments (general employees, police and fire). Each year that we
perform our audit procedures on compensated absences, we noted that the Village incurred
recordkeeping difficulties. This is primarily caused by the decentralized recordkeeping (i.e.,
each department maintains their own records and in their own format). There is a significant
liability for compensated absences which will continue to increase over the years, therefore,
accurate records and procedures are essential to monitor these activities.
Recommendation
We recommend that the recordkeeping function for compensated absences for all departments be
centralized. The Village's policies and procedures to accumulate earned compensated absences
should be revised so that centralized recordkeeping can properly control and account for
compensated absences.
Management's Response
The Village is working towards centralization with the help of its outside payroll provider to
record these compensated absences.
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VILLAGE OF KEY BISCAYNE, FLORIDA
SCHEDULE OF FINDINGS
(Continued)
I. CURRENT YEAR COMMENTS AND RECOMMENDATIONS (Continued)
Other Matters (Continued)
3. Pension Accounting
Effective October 1, 1997, the Village established a defined benefit pension plan for eligible
police officers and firefighters. This pension plan is required to be reported by the Village as a
pension trust fund in its Comprehensive Annual Financial Report. The recording of transactions,
the monthly reconciliation of contributions and other accounting and recordkeeping functions
were not maintained during the year. To properly safeguard assets from potential loss or misuse,
these procedures should be performed in a timely manner.
Recommendation
We recommend that the Pension Board monitor the financial activities of the plan and ensure
that either the Village's finance department or an outside accountant perform the accounting and
recording of transactions of the plan in a timely manner and report the monthly or quarterly
results to the Pension Board.
Management's Response
The Village will work with the Pension Board to clarify and correct this situation.
4. Solid Waste Fund Accounting
A small percent of prior years Solid Waste fees have yet to be collected. The Solid Waste Fund
is not presently integrated with the MAS 90 accounting system used by the Village. This makes
it difficult to monitor the outstanding accounts. In addition, it was noted that billings for 1998
were not collected timely.
Recommendation
We recommend that the Village establish procedures to monitor and collect outstanding balances
on a more timely basis. This could entail charging late fees or placing liens on the property. The
Village may need to analyze its billing software to see if it has the capabilities to track individual
accounts on a year to year basis.
Management's Response
The Village is working to correct this situation. It is in the process of updating its accounting
software to include the Solid Waste Fund into the MAS 90 system which will help monitor the
outstanding accounts in a timely manner.
VILLAGE OF KEY BISCAYNE, FLORIDA
SCHEDULE OF FINDINGS
(Continued)
II. PRIOR YEAR RECOMMENDATION NOT IMPLEMENTED IN CURRENT YEAR
1. Policies and Procedures Manual
We noted that the Finance Department does not have a written policies and procedures manual.
A written policies and procedures manual would help clarify duties and responsibilities of the
Finance Department.
Recommendation
We recommend that the Finance Department prepare a written policies and procedures manual.
This manual should include detailed procedures for the processing of transactions and delineate
responsibilities assigned to finance personnel.
Management's Response and Current Status
The Village will prepare a policies and procedures manual.
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