HomeMy Public PortalAboutCAFR 1999.pdfCOMPREHENSIVE ANNUAL
FINANCIAL REPORT
FISCAL YEAR ENDED
SEPTEMBER 30, 1999
'VILLAGE OFKEI OISCAYNE
V ILL
FLORIDA
V
HISTORY OF KEY BISCAYNE
ey Biscayne is a seven mile long two mile wide 4.5 square mile barrier island. An ideal vacation
destination, Key Biscayne also boasts numerous restaurants, retail and specialty shops, sports
acilities, and marine activities and attractions - many with an ecological and environmental focus.
The Village covers only 1.25 square miles of the central third of the Island.
Approximately one-half hour from Miami International Airport, the island is located seven miles southeast
of downtown Miami between Biscayne Bay and the Atlantic Ocean. Access is via the Rickenbacker
Causeway or boat.
Recent archeological excavations suggest that the Tequesta Indians lived on Key Biscayne over 1,000 years
ago. Juan Ponce de Leon discovered the island in 1513, naming it Santa Marta and claiming it for Spain.
Florida became a United States Territory in 1821 and the United States government built the Cape Florida
Lighthouse in 1825. Having survived an Indian attack during the Seminole Wars and sabotage during the
Civil War, it remains South Flonda's oldest standing structure and Key Biscayne's most famous landmark.
In 1908, William J. Matheson began buying up some of the older homesteads and within 20 years, his family
owned 1,700 of the island's 2,100 acres. In 1940, the Matheson heirs made a deal with Dade County to
donate the northern half of their Key Biscayne holdings to the county for use as a public park if the county
would construct a causeway connecting the island to Miami.
Although bond issues to build both the causeway and the park passed, World War II delayed their
construction. Finally on November 9, 1947, ceremonies celebrated the opening of Rickenbacker Causeway,
linking Key Biscayne with the mainland, and the transfer of the two northern most miles of Key Biscayne
to Miami -Dade County for Crandon Park. Access to the Key increased the marketability of the remaining
Matheson land which was destined to become the premiere residential and resort community now known
as the Village of Key Biscayne.
Rickenbacker Causeway was named for Eddie V. Rickenbacker, a World War I American fighter pilot and
recipient of the Congressional Medal of Honor who later pursued careers in the automotive and aviation
industries. Crandon Park was named for Charles H. Crandon, Chairman of the Dade County Commission,
who was a catalyst in making the causeway and the park realities.
The Mackle Brothers began construction on the island's first residential development in 1950, followed by
Key Biscayne's original shopping plaza and hotel. The population increased from 29 residents in 1950 to
2,500 during the following five years.
The Village of Key Biscayne became an incorporated municipality on June 18, 1991. The Village's current
year round population is just under 10,000.
Special thanks to author and island resident Joan Gill Blank for assistance in the preparation of this section.
Front Cover Photograph:
The oldest historical landmark in South Florida, the lighthouse stands in the Bill Baggs Cape Florida State
Recreation Area located on the southern tip of Key Biscayne. A major restoration was completed in July
1996 reverting the Cape Flonda Lighthouse to its 1856 condition. Some 20,000 bricks were replaced, a new
95 foot high 109 step iron staircase installed, and a 24 foot high iron and glass watchtower erected. In 1996
the lighthouse was relight as a navigational aid by the U.S. Coast Guard. The Keeper's Cottage & lighthouse
grounds have been designed as an interpretive center and reopened to the public in the Spnng of 1998. The
cover design was created by island resident James Morgan.
VILLAGE OF KEY BISCAYNE, FLORIDA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FISCAL YEAR ENDED SEPTEMBER 30, 1999
Prepared by:
THE FINANCE DEPARTMENT
VILLAGE OF KEY BISCAYNE, FLORIDA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FISCAL YEAR ENDED SEPTEMBER 30, 1999
TABLE OF CONTENTS
PAGE
I INTRODUCTORY SECTION
Letter of Transmittal i
Village Officials xiii
Certificate of Achievement for Excellence in Financial Reporting xiv
Village Organization Chart xv
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
CAPITAL PROJECTS FUNDS:
Combining Balance Sheets 27
Combining Statements of Revenues, Expenditures and Changes in Fund Balances 28
ENTERPRISE FUNDS:
Combining Balance Sheets 29
Combining Statements of Revenues, Expenses and Changes in Retained Earnings 30
Combining Statements of Cash Flows 31
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 32
Schedule of General Fixed Assets By Function and Activity 33
Schedule of Changes in General Fixed Assets By Function and Activity 34
GENERAL LONG-TERM DEBT ACCOUNT GROUP:
Schedule of General Long -Term Debt 35
III. STATISTICAL SECTION
General Governmental Expenditures by Function 36
General Governmental Revenues by Source 37
Utility Tax Revenue By Source; Franchise Fee Revenue by Source 38
Property Tax Levies and Collection 39
Assessed and Estimated Actual Value of Taxable Property 40
Property Tax Rates Direct and Overlapping Governments 41
Ratio of Annual Debt Service Expenditures for Net Bonded Debt to
General Governmental Expenditures 42
Schedule of Direct and Overlapping Debt - General Obligation Bonds 43
Ratio of Net Bonded Debt to Assessed Value and Per Capita 44
Demographic Statistics 45
Property Value, Construction and Bank Deposits 46
Principal Taxpayers 47
Miscellaneous Statistical Data 48
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
49
51
Schedule of Findings 53
INTRODUCTORY SECTION
VILLAGE OF KEY BISCAYNE
Village Council
Joe I. Rasco, Mayor
Martha Fdez-Leon Broucek, Vice Mayor
Scott Bass
Alan H. Fein
Mortimer Fried
Gregory C. Han
Robert Oldakowskt
Village Manager
C. Samuel Kissinger
Office of the Village Manager
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, 1999, 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 1998 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 Auditing Standards and
Rules of the Auditor General of the State of Florida.
Reportine 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:
• Building, Zoning and Planning
• Police
• Fire Rescue
• Recreation
• Public Works
• Finance and Administrative Services
• Office of the Village Clerk
• Office of the Village Manager
• Office of the Village Attorney
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85 West McIntyre Street • Key Biscayne, Florida 33149 • (305) 365-5514 • Fax (305) 365-8936
MISSION STATEMENT "TO PROVIDE A SAFE, QUALITY COMMUNITY ENVIRONMENT FOR ALL ISLANDERS THROUGH RESPONSIBLE GOVERNMENT"
Honorable Mayor, Members of the Village Council and Citizens of the
Village of Key Biscayne, Florida
Page Two
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
(, ministrative�Officer, the Village Manager is responsible for carrying out the policies aneordinarices of
the Village ,Council? for overseeing the day-to-day operations of the Village, and appointing and
supervising/the department heads of the Village.
Location, Village Size, and Population
The Village of Key Biscayne is located on Key Biscayne, a barrier island situated between the Atlantic
Ocean to the east and Biscayne Bay to the west. The island is located just south of Virginia Key, a
separate island connected to the mainland south of downtown Miami by the Rickenbacker Causeway.
The Village 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. The Village currently has an area of approximately 1.25 square miles and population estimated at
9,500 year-round and 4,000 seasonal residents.
Major Initiatives
For the Year
The Village's staff, following specific directives from the Village Council, have been actively involved in
a variety of projects designed to provide the Island's residents with the best environment through
responsible government. During fiscal year 1999, the most notable examples of the Village's efforts
included continuing improvements and additions to Key Biscayne's infrastructure, beautification projects
designed to further enhance the Village's specific style and character, expansions in the programs and
services of the Recreation department, public safety enhancements resulting in an improvement in Key
Biscayne's insurance rating, numerous police educational programs, and finally further progress in the
area of the Village Civic Center.
To begin with, fiscal year 1999 witnessed many improvements and additions to the Village's public
infrastructure. Special attention should be given to the extension of the Village's stormwater system to
portions of Fernwood Road and roadway and right-of-way improvements along East Enid Drive. The
first project, an important extension and continuation of the original drainage system completed in
calendar 1998, consisted of an approximately 200 linear feet extension of the stormwater system along
West McIntyre Street on Fernwood Road and south along Fernwood Road to West Mashta Drive. The
Honorable Mayor, Members of the Village Council and Citizens of the
Village of Key Biscayne, Florida
Page Three
project began in August 1998 and was completed by June 1999. Also important to the Village was
completion of the East Enid Drive Improvement Program. Improvement, including repaving driving
lanes, adding brick paver parallel parking spaces north and south of the repaved road, replacing portions
of the sidewalk abutting the road on the north side of the street, and extending the in -place decorative
sidewalk on the south side, were completed in July 1999 at a cost of approximately $820,000.
Additionally, the project added two elevated traffic calming/pedestrian crossing devices, increasing the
safety level for pedestrians and motorists alike, installed a new well and drainage system, and provided
accent path lighting at crosswalk areas along the promenade east of Ocean Drive.
Associated with infrastructure is the Village's beautification programs which preserve and enhance Key
Biscayne's unique character and quality of life of its residents. Examples of this important Village
initiative were the dedication of the Mashta Bridge and improvements to the Village entrance along
Crandon Boulevard. The new Mashta Bridge is bound to become a special Village landmark and a focal
point of the community. This attractive 45 foot long single space pre -cast Mediterranean styled concrete
bridge offers two lanes for the traffic, pavers, headwells, barrier wall, and decorative railings and lighting.
Additionally, its sidewalks and overlooks encourage pedestrians and cyclist to stop and admire the
magnificent view of the Village. As an added benefit, the bridge allows for tidal flushing between
Hurricane Harbor and Smuggler's Cove resulting in a cleaner and more pleasant environment for the
area's homeowners. The second beautification project involved installation of up -lighting for three
medians at the Village entrance along Crandon Boulevard. Completed in December 1997 at a cost of
approximately $67,000, the project adds a tasteful touch to the south side of the Village's main arterial
road, at the same time achieving the goal of traffic calming. Additional beautification projects involved
landscaping improvements and uplighting for Ocean Lane Drive medians and extensions of holiday
lighting to additional avenues. The Miami Herald noted in a May 16, 1999 news article that Crandon
Boulevard is "tastefully landscaped".
Also important to the outstanding quality of life enjoyed by the Village's residents is the expansion of the
already impressive programs offered by the Recreation Department. During fiscal year 1999, the staff
initiated its first concert series to bring Village's residents the beauty and art of music. This initiative
proved to be great success as it allows all participants convenient access to shows that they might not
have been otherwise able to attend. Additionally, the department continued its work with various sport
leagues operating within the Village. Examples of these activities included conducting the National
Youth Sports Coaches Association certification for the KBAC baseball program and hosting a three-day
coaching clinic for the Florida Youth Soccer Association. In keeping the children and teens safe while
playing sports, the staff also received certification from the National Institute of Playground Safety
Inspector for developing a monthly check list/audit forms for all playgrounds to check for entrapments,
pinch or crush points, protrusions, etc. Improvements were also made in this fiscal year to the
department's facilities in Calusa Park, where electrical lines were rewired and the recreation building
floor was retiled during the summer of 1999.
Honorable Mayor, Members of the Village Council and Citizens of the
Village of Key Biscayne, Florida
Page Four
A very positive development for the Village's residents and property owners was also the increase in Key
Biscayne's Insurance Service Office (ISO) rating from Class 4 to Class 3. This change, made upon a site
visit by the Insurance Service Office's Public Protection Department, is anticipated to lead to a reduction
of property insurance premiums throughout the Village. The previous classification of ISO Class 4 was
applied to the Village under the Miami -Dade Fire Rescue Department and this improvement can be
equated with the marked increase in the level of protection since the Village created its own Fire Rescue
Department. In addition to the financial benefits of insurance premium decreases, the Village residents
can also see this as an independent affirmation of the quality of services they receive. Even though no
one would like to use the Fire Rescue Department's services, it is very encouraging to know that they are
highly respected for their capability and professionalism.
Fiscal year 1999 was also one in which the Village's Police Department undertook many public education
programs aimed at promoting public safety and community oriented policing as well as initiated its
professional accreditation process. This last item, which is a two-year program, will ensure that the
Department meets or exceeds professional standards with the State of Florida. In the area of community
awareness and education programs, the staff has initiated an educational program on gun safety, and by
April 1, 1999, all children in all schools had received at least sixty minutes of gun safety education. To
supplement that effort, gun safety locks have been purchased and distributed free of charge to interested
residents. Additionally, a pilot program was initiated to keep children from riding their bikes without a
helmet by issuing them a citation that could later be forgiven once a helmet or proof or purchase was
presented. Not forgetting about the mature residents of the Village, the Department in cooperation with
the Recreation Department conducted AARP "55 Alive/Mature Driving" safety classes designed to
promote safe driving habits among seniors. Extensive and beneficial use was also made during fiscal year
1999 of the over $140,000 in grant funds received for public safety purposes by the Village. Examples of
programs supported partially or wholly by the money are the funding of four officers involved in crime
prevention, domestic violence training emphasizing attention to all sides of the often delicate and
intensely private disputes, purchase of an electric D.A.R.E. program car, and improvements in the
Department's technology for use in better reporting and computer aided dispatch.
Finally, fiscal year 1999 was also a year in which significant progress was made in the area of the Village
Civic Center. Two important developments that took place during the fiscal year were the finalization of
financing and execution of purchase contracts for the land needed for the center. With regard to the
financing for the Civic Center, in July 1999 the Village Council accepted a proposal made by
NationsBank to purchase 20 -year Bonds at a fixed rate of 4.715%. In addition to these very advantageous
financing terms, the Village was also successful in securing the SunTrust Bank site for a sum of
$3,482,500. The contract executed in December 1998 had ended its due diligence period in April 1999,
with no recommendation to terminate the agreement. Closing on that deal will take place at the time of
the new bank building's opening anticipated in October 2001. With regard to the second land parcel
located along Crandon Boulevard, a purchase contract for that land was executed on July 21, 1999.
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Honorable Mayor, Members of the Village Council and Citizens of the
Village of Key Biscayne, Florida
Page Five
The contract, whose closing date is at yet undetermined, stipulates that the 2.06 acre site shall be
purchased at a cost not to exceed $3,255,000.
For the Future
Village of Key Biscayne residents can be assured that during fiscal year 2000, their government will
continue to provide them with more and better services. For instance, the Building, Zoning & Planning
Department is expected to unveil its new state-of-the-art integrated permit system. The new computer -
based system will allow for tracking the entire process of permitting and all its stages on-line, and is
expected to lead to more streamlined and efficient process of issuing a permit. The Building, Zoning &
Planning Depaitiuent will also be adopting a new zoning code consistent with the Village's
Comprehensive Plan to replace that of the County. One change being proposed is limiting the maximum
allowable floor area of the building to the lot size. Additionally, the Department will develop a streetscape
improvement project from the entrance of the Village at its northerly limits to just south of the
intersection of Harbor Drive and along Harbor Drive from Fernwood Road to Ocean Lane Drive. The
project, still under public review, contains new curbing, Royal Palms, shade trees, eight -foot decorative
sidewalks, entrance features, and bike lanes.
Keeping with the improvement theme, the Public Works Department will be involved in the infrastructure
improvements in fiscal year 2000. The Department's goals for the year include traffic calming devices
for West Heather Drive, landscaping of the BellSouth easement on Fernwood Road, planning for the
development of the Pines Canal overlook and sidewalk extension to the State Park, planning and
development of the Village Ocean Park, and installation of the sanitary sewer project.
Important in maintaining and enhancing of the Villagers' unique lifestyle are the activities of the
Recreation Department. During fiscal year 2000, the Department will further expand its activities, make
improvements to existing facilities and start expansion of new ones. The Department will expand its
excellent relationship with the Key Biscayne Athletic Club by contracting with that organization to
operate numerous activities for the Village's sports programs. Various improvements will also be made to
the Calusa Park, and will include resurfacing of the tennis courts, adding basketball programs, and
installing a kiln for firing ceramics. The Village will also start construction in fiscal year 2000 on the
Ocean Park project.
Associated with the Village's recreational activities is the presence in our community of the Key
Biscayne branch of the Miami -Dade Library District. Due to the Village's donation of $35,000 in fiscal
year 2000, the facility will provide an additional 25 hours per week of operation, including Sundays,
between October and May.
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Honorable Mayor, Members of the Village Council and Citizens of the
Village of Key Biscayne, Florida
Page Six
The Village's Police Department is also anticipating fiscal year 2000 to be the most productive. The
Department will implement a new program to include etching of car windows with the vehicle
identification number to prevent theft and assist in recovery of stolen vehicles. In partnership with the
Chamber of Commerce, the Department will continue to deliver "Welcome Baskets" to new residents and
businesses, while at the same time establishing a cooperative relationship with those individuals and
entities to work together on crime prevention, fire safety, hurricane preparedness, maps and helpful
merchant information.
The Village entered into a contract with Moyer & Associates to provide the services of the Finance
Director beginning in fiscal year 2000. All aspects of this position will be serviced by various members
of that firm.
Departmental Focus
Each year the Village will focus attention on the efforts and accomplishments of a selected department.
This year, the Building, Zoning & Planning Department has been selected for this purpose.
The Department is composed of three divisions, Building, Zoning and Planning, working together within
the Department as well as with other Village Departments towards the goal of providing the Village
residents with a safe, quality community environment through responsible government.
The Building Division's primary responsibility is the administration of the South Florida Building Code.
The staff is responsible for the processing of permits, performing inspections, and insuring compliance.
The Division is also responsible for verifying that contractors have proper credentials and licenses to
perform work in the Village.
The Zoning Division is responsible for reviewing plans for compliance with the Zoning and Land
Development Regulations and providing information to residents and architects on the development
potential of properties within the Village. The Division also enforces zoning and property maintenance
standards and reviews occupational and liquor licenses as well as permits for particular property uses.
The Planning Division administers the Comprehensive Plan, including the processing, monitoring and
evaluation of amendments to the Plan, concurrency regulations, Development of Regional Impact, and
other issues that relate to the overall planning and legislative control of the Village.
In addition to the above listed functions, the Department provides information, reports, and
recommendations relating to the orderly growth and development of the Village to the Village Council
and Manager. Furthermore, the Department provides Geographic Information Services to all Departments
in the Village and other governmental agencies.
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Honorable Mayor, Members of the Village Council and Citizens of the
Village of Key Biscayne, Florida
Page Seven
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 control 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 (GFOA)
General Government Functions
The General Fund is the general operating fund of the Village. General tax revenues and other
receipts that are not allocated by law or contractual agreement to some other fund are accounted
for in this fund. General operating expenditures, fixed charges and capital improvement costs
not accounted for through other funds are accounted for in the General Fund.
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Honorable Mayor, Members of the Village Council and Citizens of the
Village of Key Biscayne, Florida
Page Eight
The amount of General Fund revenues and expenditures from various sources are shown in the following
schedule:
REVENUES (Budgetary Basis)
Sources FY 1999 FY 1998 Net Changes % Change
Property taxes
Utility Taxes
Franchise Fees
Intergovernmental
Licenses and Permits
Charges for Services
Other
Interest
Grants
Total Revenues
$ 7,012,714
1,621,473
740,031
807,924
668,672
457,828
22,057
231,820
815.116
$12,377,625
EXPENDITURES AND TRANSFERS (Budgetary Basis)
Function
General Government
Public Works
Building, Zoning & Planning
Parks and Recreation
Public Safety
Debt Services
Non -Departmental
Transfers to Capital Improvement Fund
FY 1999
$844,149
425,464
1,082,177
301,942
5,811,878
1,136,327
700,146
1.017.430
Total Expenditures and Transfers $11,319,513
$ 6,963,000
1,514,697
709,067
843,812
1,003,768
191,568
38,300
233,654
163.107
$11,661,873
FY 1998
$813,393
600,040
931,618
265,834
5,419,974
1,132,824
603,601
1,426,000
$11,193,284
$ 48,814
106,776
30,964
(35,888)
(335,096)
266,260
(16,243)
(1,834)
652,009
1
7
4
(4)
(33)
139
(42)
(1)
399
$715,762 6
Net Changes % Change
$30,756 4
(174,576) (29)
150,559 16
36,108 14
391,904 7
3,503
96,545 16
(408,570) 28)
1
$126,229 1
Honorable Mayor, Members of the Village Council and Citizens of the
Village of Key Biscayne, Florida
Page Nine
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.
During fiscal year 1999, the Village Council established a Civic Center Fund to account for the land
acquisition, planning, and construction of a new Village Civic Center to house Police, Fire/EMS, and
administration offices for the Village of Key Biscayne. Funding for this project is from a series of
Revenue Bonds, the first of which was issued July 30, 1999.
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
• 3e -r_' _..ea a/13
The Village Council established a budget for the Sanitary Sewer System during the fiscal year. A state
loan was obtained from 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 & Jerrigan, 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 governments. As
of September 30, 1999, the following is 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.
if ow to Lt u"
ore.
Honorable Mayor, Members of the Village Council and Citizens of the
Village of Key Biscayne, Florida
Page Ten
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, 1999 were $922,743.
Other Plans Administrated 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 over the Plan assets, therefore, it is not included in the Village financial statements, but is
included as a footnote disclosure. The 401(a) fund had $3,466,224 in investments as of September 30,
1999.
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, 1999 were $1,680,948. In accordance with GASB Statement No. 32 and because the
Village does not have fiduciary responsibility over the assets of this plan, the Village does not report this
Plan in their financial statements and 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 depreciation 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, 1999, the general fixed assets
acquired amount to $19,949,285. Major additions for fiscal year 1999 were for public safety equipment
and vehicles.
Debt Administration
The Village of Key Biscayne has three outstanding obligations: 1) a 10 -year $9,200,000 Land
Acquisition Revenue Bond which was issued on December 20, 1995 at 4.36% from Northern Trust Bank
to purchase the land for the Village Green. The balance on September 30, 1999 was $5,090,000; 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 4.52% respectively. The Village issued $7,200,000
Stormwater Utility Revenue Bonds, Series 1999 at 4.13% for 20 years to refund the Bond Anticipation
-x-
Honorable Mayor, Members of the Village Council and Citizens of the
Village of Key Biscayne, Florida
Page Eleven
Note; 3) A $10,000,000 Land Acquisition and Capital Improvement Revenue Bond, Series 1999 ate
for 20 years to purchase land and construct a Village Civic Center building. The bond was issued
through Bank of America.
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, 1999, had a balance of $136,481 in the General
Fund and $264,659 for the Law Enforcement Trust Fund.
Risk Management
The Village is insured with the Florida Municipal Insurance Trust for liability and property coverage and
with the Florida Municipal Self Insurance Fund for Workers Compensation coverage. The liability limit
under the policy is $5,000,000. Employee Life Insurance is with Standard Insurance Company.
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, 1998. 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, 1998. 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 CAFR for the fiscal year ended
September 30, 1999 and budget for fiscal year 2000 continue to conform to program requirements and we
have submitted them to the GFOA to determine their eligibility.
Honorable Mayor, Members of the Village Council and Citizens of the
Village of Key Biscayne, Florida
Page Twelve
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 Rachlin Cohen &
Holtz LLP for their professional approach and high standards in the conduct of their independent audit of
the Village's financial records and transactions.
i 11 ubmitted,
C. Samuel Ki Inger
Village Manager
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
Moyer & Associates
VILLAGE ATTORNEY
Weiss, Serota, Helfman, Pastoriza & Guedes, P.A.
VILLAGE AUDITORS
Rachlin Cohen & Holtz LLP
Certified Public Accountants & Consultants
1,.:-.: , /-
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, 1998
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.
aZ 3 R:-•- 6...1e-
President
0° 06/‘W&
Executive Director
Organizational Chart
VOTERS
OF
KEY BISCAYNE
Village
Council
(7)
Local Planning
Agency
Village Clerk
(1.5)
Special Master
(2)
Village Manager
(2)
Village Attorney
Assistant to
the Manager
(1)
Police/Fire
Retirement
Board (5)
Department of
Building,
Zoning and
Planning (11)
Building
Zoning
I Planning
Code Assistance
Department of
Emergency
Services (71.5)
Fire Rescue.
Police
Department of
Recreation (3)'
Special Eirents
Programs
and Tours
Department of;.
Public
Works (2)
Village Engineer
Contract
.-
Stormwater
Management
Refuse
Collection
Land Recycling
Maintenance
Department of
Finance and
Administrative
Services (2)
Finance/
Accounting
Personnel/
Benefits
Risk
Management
R CH Rachlin Cohen & Holtz LLP
Certified Public Accountants & Consultants
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, 1999, as listed in the table of contents.
These general purpose financial statements are the responsibility of the Village's management. Our
responsibility is to express an opinion on these general purpose financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards and the standards
applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller
General of the United States. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the general purpose financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the general purpose financial statements referred to above present fairly, in all material
respects, the financial position of the Village as of September 30, 1999, and the results of its operations
and the 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 February 1, 2000
on our consideration of the Village's internal control over financial reporting and our tests of its compliance
with certain provisions of laws, regulations, grants and contracts.
Our audit was conducted for the purpose of forming an opinion on the general purpose financial statements
taken as a whole. The accompanying combining, individual fund and account group statements and
schedules as listed in the table of contents and the required supplementary information on page 23 are
presented for purposes of additional analysis and are not a required part of the general purpose financial
statements. Such information has been subjected to the auditing procedures applied in the audit of the
general purpose financial statements and, in our opinion, is fairly presented in all material respects in
relation to the general purpose financial statements taken as a whole.
-1-
One Southeast Third Avenue, Tenth Floor, Miami, Florida 33131 • Tel 305-377-4228 • Fax 305-377-8331
Offices m Miami • Ft Lauderdale • Boca Raton • West Palm Beach • Stuart
wwwrchcpa com - - -
Member of Summit International Associates, in „ith offices in principal cities throughout the,ceild
\(ember of the American Institute of Certified Public Accountants and member of the Florida Institute of Certnied Fnhlic Accountants
Honorable Mayor, Village Council and Village Manager
Village of Key Biscayne, Florida
Page Two
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.
iezedie..<: G'ld..1 • ,Wril emu°
Miami, Florida
February 1, 2000
1
GENERAL PURPOSE
FINANCIAL STATEMENTS
(Combined Statements - Overview)
VILLAGE OF KEY BISCAYNE, FLORIDA
COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUPS
SEPTEMBER 30, 1999
(WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1998)
Governmental Proprietary Fiduciary Account
Fund Types Fund Types Fund Type Groups
Trust General General Totals
Capital and Fixed Long -Term (Memorandum Only)
General Projects Enterprise Agency Assets Debt 1999 1998
ASSETS AND OTHER DEBITS
Cash and cash equivalents $ 1,836,469 $ 2,361,021 $ 1,554,492 $ 29,549 $ - $ - $ 5,781,531 $ 4,628,000
Investments 2,105,664 11,100,771 - 893,194 - - 14,099,629 4,861,793
Due from other governments - 27,220
Due from other funds 198,216 120,576 318,792 670,744
Property taxes receivable 55,299 55,299 24,806
Accounts receivable, net 359,322 88,000 112,650 559,972 874,514
Interest receivable
Prepaid loan fees and capitalized interest 43,962 - 43,962 48,375
Fixed assets 9,870,451 19,949,285 29,819,736 27,216,994
Amount to be provided for retirement of general long-term debt - 16,138,654 16,138,654 6,890,375
Total assets and other debits $ 4,554,970 $ 13,670,368 $ 11,581,555 $ 922,743 $ 19,949,285 $ 16,138,654 $ 66,817,575 $ 45,242,821
LIABILITIES, EOUITY AND OTHER CREDITS
Liabilities:
Accounts payable and accrued liabilities $ 308,138 $ 190,255 $ 82,180 $ - $ - $ - $ 580,573 $ 519,010
Retainage payable 33,543 11,750 - - 45,293 88,783
Deposits and performance bonds 5,915 5,915 11,027
Due to other funds 120,576 198,216 - 318,792 670,744
Revolving loan - - 723,762 723,762 723,762
Bond anticipation notes - - - 7,200,000
Compensated absences payable - 1,048,654 1,048,654 905,375
Revenue bonds payable 7,200,000 15,090,000 22,290,000 5,985,000
Total liabilities 434,629 422,014 8,017,692 16,138,654 25,012,989 16,103,701
Equity and other credits:
Investment in general fixed assets - 19,949,285 19,949,285 17,356,576
Contributed capital 2,682,901 - 2,682,901 2,682,901
Retained earnings 880,962 880,962 937,759
Fund balance:
Reserved 3,720,236 13,248,354 922,743 17,891,333 7,735,884
Unreserved:
Designated 400,105 400,105 426,000
Total equity and other credits 4,120,341 13,248,354 3,563,863 922,743 19,949,285 41,804,586 29,139,120
Total liabilities, equity and other credits $ 4,554,970 $ 13,670,368 $ 11,581,555 $ 922,743 $ 19,949,285 $ 16,138,654 $ 66,817,575 $ 45,242,821
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, 1999
(WITH COMPARATIVE TOTALS FOR 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
Capital outlay
Debt Service:
Principal
Interest
Total expenditures
General
Fund
$ 7,012,714
1,621,473
740,031
807,924
668,672
457,828
22,057
231,820
815,116
12,377,635
Capital
Projects
Funds
Totals
(Memorandum Only)
1999 1998
$ $ 7,012,714 $ 6,963,900
1,621,473 1,514,697
740,031 709,067
807,924 843,812
668,672 1,003,768
457,828 191,568
205,576 227,633 38,300
292,385 524,205 392,477
88,000 903,116 163,107
585,961 12, 963,596 11,820,696
914,479
730,521
1,058,831
293,664
5,644,903
672,708
391,650 2,489,475
895,000
241,327
10,843,083 2,489,475
Excess (deficiency) of revenues over expenditures 1,534,552 (1,903,514)
Other financing sources (uses):
Operating transfers in 1,017,430
Operating transfers out (1,017,430)
Bond proceeds 10,000,000
Total other financing sources (uses) (1,017,430) 11,017,430
Excess of revenues and other financing sources
over expenditures and other financing uses
Fund balances, beginning
Fund balances, ending
517,122
3,603,219
9,113,916
4,134,438
914,479 2,356,263
730,521 828,287
1,058,831 939,087
293,664 255,704
5,644,903 5,278,315
672,708 587,809
2,881,125 186,297
895,000 855,000
241,327 277,825
13,332,558 11,564,587
(368,962) 256,109
1,017,430 1,881,000
(1,017,430) (1,426,000)
10,000,000
10,000,000 455,000
9,631,038 711,109
7,737,657 7,026,548
$ 4,120,341 $ 13,248,354 $ 17,368,695 $ 7,737,657
See notes to general purpose financial statements.
.-
VILLAGE OF KEY BISCAYNE, FLORIDA
STATEMENT OF REVENUES AND EXPENDITURES
BUDGET AND ACTUAL - GENERAL FUND
FISCAL YEAR ENDED SEPTEMBER 30, 1999
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 -
expenditures of prior year reserves
Operating transfers out
Total other financing sources (uses)
Excess of revenues and other financing sources
over expenditures and other financing uses
Budget
$ 6,947,916
1,507,000
692,500
789,375
687,925
102,600
250,000
148,000
11,125,316
Budgetary
Basis
Actual
$ 7,012,714
1,621,473
740,031
807,924
668,672
457,828
22,057
231,820
815,116
Variance
Favorable
(Unfavorable)
$ 64,798
114,473
47,531
18,549
(19,253)
355,228
22,057
(18,180)
667,116
12,377,635 1,252,319
862,682 844,149 18,533
561,084 425,464 135,620
1,102,062 1,082,177 19,885
311,599 301,942 9,657
5,874,942 5,811,878 63,064
800,082 700,146 99,936
895,000 895,000
241,435 241,327 108
10,648,886 10,302,083 346,803
476,430 2,075,552 1,599,122
541,000 (541,000)
(1,017,430) (1,017,430)
(476,430) (1,558,430) (1,082,000)
$ 517,122 $ 517,122
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, 1999
(WITH COMPARATIVE TOTALS FOR FISCAL YEAR ENDED SEPTEMBER 30, 1998)
1999 1998
Operating revenue
Operating expenses:
General and administrative costs
Provision for doubtful accounts
Depreciation
Operating income
Non -operating revenue (expense):
Interest income
Interest expense
Total non -operating expense
Loss before operating transfers
Transfers out
Net loss
Retained earnings, beginning
Retained earnings, ending
$ 750,040 $ 722,127
298,769 284,007
15,000
269,729 269,729
181,542 153,391
63,160
(301,499)
85,138
(318,240)
(238,339) (233,102)
(56,797) (79,711)
(455,000)
(56,797) (534,711)
937,759 1,472,470
$ 880,962 $ 937,759
See notes to general purpose financial statements.
VILLAGE OF KEY BISCAYNE, FLORIDA
COMBINED STATEMENT OF CASH FLOWS
ENTERPRISE FUNDS
FISCAL YEAR ENDED SEPTEMBER 30, 1999
(WITH COMPARATIVE TOTALS FOR FISCAL YEAR ENDED SEPTEMBER 30, 1998)
1999 1998
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 operating 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:
Transfers out
Net cash used by non -capital financing activities
Cash flows from capital and related financing activities:
Payments for construction in progress
Proceeds from revenue bonds
Retirement of bond anticipation notes
Net proceeds from revolving loan
Interest paid
Net cash used by capital and related financing activities
Cash flows from investing activities:
Interest received
Net cash provided by investing activities
Net decrease in cash and cash equivalents
Cash and cash equivalents, beginning
Cash and cash equivalents, ending
$ 181,542 $ 153,391
269,729 269,729
15,000
517,902 (523,407)
8,442
8,562 (8,562)
(182,491) 91,639
(110,063)
(470,237) 470,237
143,465 213,015
325,007 366,406
(455,000)
(455,000)
(279,762) (567,044)
7,200,000
(7,200,000)
679,800
(301,499) (318,240)
Om
(581,261) (205,484)
63,160 85,138
63,160 85,138
(193,094) (208,940)
1,747,586 1,956,526
$ 1,554,492 $ 1,747,586
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, 1999
(WITH COMPARATIVE TOTALS FOR FISCAL YEAR ENDED SEPTEMBER 30, 1998)
1999 1998
ADDITIONS
Contributions:
Employee
State
Total contributions
Investment income:
Investment earnings
Less investment expenses
Net investment income
$ 446,789 $ 403,614
60,949 32,526
507,738 436,140
59,353 12,515
1,205
59,353 11,310
Total additions 567,091 447,450
DEDUCTIONS
Refunds 5,877 3,194
Administrative expenses 17,799 20,029
Distributions 44,899
Total deductions 68,575 23,223
Net increase 498,516 424,227
Net assets held in trust for pension benefits:
Beginning of year 424,227
End of year $ 922,743 $ 424,227
See notes to general purpose financial statements.
-8-
NOTES TO GENERAL PURPOSE
FINANCIAL STATEMENTS
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
SEPTEMBER 30, 1999
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Village of Key Biscayne, Florida (the Village), located in Miami -Dade County, is a political
subdivision of the State of Florida. The Village, which was incorporated in 1991, operates under a
Council -Manager form of government. In addition to the general government function, the Village
provides its residents with public works, public safety (police and fire), parks and recreation,
building, zoning and planning functions, sanitation and stormwater management. The Village does
not provide educational or hospital facilities; those services are provided by the Miami -Dade
County School Board and Miami -Dade County, respectively.
The 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 the standards of the Governmental Accounting Standards Board (GASB),
which is the accepted standard -setting body for establishing governmental accounting and financial
reporting principles.
The more significant of the Village's accounting policies are described below to assist the reader in
interpreting the general purpose financial statements and other data in this report. These policies
are considered essential and should be read in conjunction with the accompanying general purpose
financial statements.
1. Financial Reporting Entity
The financial statements were prepared in accordance with GASB Statement No. 14, The
Financial Reporting Entity, which establishes standards for defining and reporting on the
financial reporting entity. The definition of the financial reporting entity is based upon the
concept that elected officials are accountable to their constituents for their actions. One of the
objectives of financial reporting is to provide users of financial statements with a basis for
assessing the accountability of the elected officials. The financial reporting entity consists of
the Village, organizations for which the Village is financially accountable, and other
organizations for which the nature and significance of their relationship with the Village are
such that exclusion would cause the reporting entity's financial statements to be misleading or
incomplete. The Village is financially accountable for a component unit if it appoints a voting
majority of the organization's governing board and it is able to impose its will on that
organization or there is a potential for the organization to provide specific financial benefits to,
or impose specific financial burdens on, the Village. Based upon the application of these
criteria, there were no organizations that met the criteria described above.
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 is 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.
-9-
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 agreements.
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 funds account for the acquisition or construction of major capital
projects not being financed by proprietary funds. The Village has two capital projects
funds; the capital improvement fund and the civic center fund.
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
in
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)
Proprietary Fund Type (Continued)
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; 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 including 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 appropriations and the means of financing
them 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, 1999, there were no supplemental appropriations.
(e) Formal budgetary integration is employed as a management control device for the general
fund.
(f) The budget for the general fund is adopted on a basis consistent with generally accepted
accounting principles (GAAP), except for certain unbudgeted expenditures of prior year
reserves.
(g) The Village Manager is authorized to transfer part or all of an encumbered appropriation
balance within departments within a fund; however, any revisions that alter the total
appropriations of any depait„ient 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 (2A7 -Pool), are reported at its position in the pool, which is the same as the
value of the pool shares. All other investments are reported at 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 consists of assets capitalized for the stormwater utility
system project and the sanitary sewer construction 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.
Unreserved, undesignated fund balance is the portion of fund equity available for any lawful
use.
-13-
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
10. Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting
principles requires management to make estimates and assumptions that affect the amounts
reported in the financial statements and accompanying notes. Although these estimates are
based on management's knowledge of current events and actions it may undertake in the
future, they may ultimately differ from actual results.
11. Comparative Data/Reclassifications
Comparative total data for the prior year has been presented in selected sections of the
accompanying financial statements in order to provide an understanding of changes in Village's
financial position and operations. Certain amounts presented in the prior year data have been
reclassified to be consistent with current year's presentation.
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. DEPOSITS AND INVESTMENTS
In addition to insurance provided by the Federal Depository Insurance Corporation, all deposits are
held in banking institutions approved by the State Treasurer of the State of Florida to hold public
funds. Under Florida Statutes Chapter 280, Florida Security for Public Deposits Act, the State
Treasurer requires all Florida qualified public depositories to deposit with the Treasurer or another
banking institution eligible collateral. In the event of a failure of a qualified public depository, the
remaining public depositories would be responsible for covering any resulting losses. Deposits at
September 30, 1999 were $10,103,565. Accordingly, all amounts reported as deposits are insured
or collateralized and are, therefore, not subject to classification by credit risk category under the
provisions of GASB Statement No.3.
The Village is authorized to invest in obligations of the U.S. Treasury, its agencies,
instrumentalities and the State Board of Administration investment pool.
-14-
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
NOTE 2. DEPOSITS AND INVESTMENTS (Continued)
At September 30, 1999, the Village's investments balances, at fair value, were as follows:
Category 1
Repurchase agreements $2,526,656
Bonds 266,285
Common stock 626,909
$3,419,850
Investments not subject to categorization:
Mutual funds $4,005,975
State Board of Administration investment pool 2,351,770
$9,777,595
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
NOTE 3. PROPERTY TAXES
$10,103,565
9,777,595
$19,881,160
$ 5,781,531
14,099,629
$19,881,160
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, 1999, there were no
significant delinquent taxes.
-15-
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
NOTE 4. 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
Construction in progress
Total
Balance
September 30,
1998 Additions
$13,240,657 $ -
587,076 143,641
974,994 1,982,739
2,441,544 492,042
112,305 15,967
189.545
$17,356,576 $2,823,934
Balance
September 30,
Deletions 1999
$ $13,240,657
730,717
2,957,733
231,225 2,702,361
128,272
189,545
$231,225 $19,949,285
Depreciation is not required and has not been provided on general fixed assets.
The following is a summary of proprietary fund type fixed assets during the year:
Construction in progress
Stormwater utility system
Less accumulated depreciation
NOTE 5. LONG-TERM DEBT
Balance
September 30,
1998 Additions
$ 262,009
9,868,138
10,130,147
269,729
$ 9,860,418
$ 91,240
188.522
279,762
269.729
$ 10,033
Deletions
Balance
September 30,
1999
$ - $ 353,249
- 10,056,660
10,409,909
539,458
$ $ 9,870,451
The following is a summary of changes in general long-term debt account group during the year:
Balance
September 30,
1998
Balance
September 30,
Additions Payments 1999
Revenue bonds payable $5,985,000 $10,000,000
Compensated absences payable 905.375 143.279
$6,890,375 $10,143,279
$895,000 $15,090,000
- 1,048,654
$895,000 $16,138,654
-16-
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
NOTE 5. LONG-TERM DEBT (Continued)
Revenue Bonds
Land Acquisition Revenue Bonds:
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 $935,000 in fiscal 2000 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 year ending September 30:
2000
2001
2002
2003
2004
$ 935,000 $201,541 $1,136,541
975,000 159,903 1,134,903
1,015,000 116,521 1,131,521
1,060,000 71,286 1,131,286
1,105,000 24,089 1,129,089
$5,090,000 $573,340 $5,663,340
Land Acquisition and Capital Improvement Revenue Bonds:
During the fiscal year ended September 30, 1999, the Village issued land acquisition and
capital improvement revenue bonds of $10 million, the proceeds of which were used for the
acquisition of property and financing of the construction of the Civic Center project. The
Village has pledged non -ad valorem revenues to secure payment of the principal and interest
on the bonds. The bonds are due in annual principal installments ranging from $355,000 in
fiscal 2000 to $815,000 in fiscal 2020. Interest accrues at 4.715% per annum.
Debt service requirements to maturity is as follows:
Principal Interest Total
Fiscal year ending September 30:
2000
2001
2002
2003
2004
2005-2020
355,000
375,000
9,270,000
$10,000,000
$ 394,226 $ 394,226
471,500 471,500
471,500 471,500
463,131 818,131
445,921 820,921
3,951,562 13,221,562
$6,197,840 $16,197,840
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
NOTE 5. LONG-TERM DEBT (Continued)
Revenue Bonds
Stormwater Utility Revenue Bonds:
During the fiscal year ended September 30, 1999, the Village issued stormwater utility
revenue bonds of $7,200,000, the proceeds of which were used to pay the principal of the
$7,200,000 Bond Anticipation Notes, Series 1995. The Village has pledged stormwater
utility fees to secure payment of the principal and interest on the bonds. The bonds are due
in annual principal installments ranging from $135,000 in fiscal 2000 to $595,000 in fiscal
2020. Interest accrues at 4.13% per annum.
Debt service requirements to maturity is as follows:
Principal Interest Total
Fiscal year ending September 30:
2000 $ 135,000 $ 74,951 $ 209,951
2001 125,000 291,784 416,784
2002 130,000 286,622 416,622
2003 185,000 281,253 466,253
2004 195,000 273,612 468,612
2005-2020 6,430,000 2,631,636 9,061,636
$7,200,000 $3,839,858 $11,039,858
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 loan 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.
NOTE 6. COMMITMENTS AND CONTINGENCIES
Commitments
The Village was obligated under a non -cancelable operating lease for office space until October
1, 1998. Subsequent to October 1, 1998, the Village leases their office space on a month -to -
month basis. Rent expenses were approximately $97,000 for fiscal year 1999.
Construction Commitments
The Village issued land acquisition and capital improvement revenue bonds totaling
$10,000,000 in fiscal year 1999 for the acquisition of the property and construction of the Civic
Center. The Civic Center project is currently in the initial stages and no significant
expenditures have been incurred. Various other construction projects are ongoing for street
repairs and maintenance and Village beautification.
-18-
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
NOTE 6. COMMITMENTS AND CONTINGENCIES (Continued)
Litigation
The Village is involved in several lawsuits incidental to its operations, the outcome of which,
in the opinion of management and legal counsel, would not have a material adverse effect on
the financial condition of the Village.
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.
Grant Contingency
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 that 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 7. RESERVED/DESIGNATED FUND BALANCES
As of September 30, 1999, 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
Special disaster relief 100,000
Recreation facilities 99,860
Law enforcement seizures 262,352
Community center 30,100
Beach park and walk 572,738
Compensated absences 565,586
Subsequent year's budget 440,000
Emergencies 1,500,000
$3,720,236
-19-
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
NOTE 7. RESERVED/DESIGNATED FUND BALANCES (Continued)
Capital project funds:
Capital improvements $13,248,354
Pension Trust Fund:
Employees pension benefits $ 922,743
Designated Fund Balances
General fund:
Police/fire equipment and building $ 40,000
Community grants, maintenance and improvements 51,000
Professional fees 34,105
Inspector fees 275,000
$ 400,105
NOTE 8. 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 9), were no longer eligible to contribute to the
401(a) plan. Employer contributions for fiscal year ended September 30, 1999 were
approximately $400,000 while the employee contributions were approximately $80,000.
Amendments to the Plan must be authorized by the Village Council.
NOTE 9. 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, 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.
-20-
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
NOTE 9. DEFINED BENEFIT PENSION PLAN (Continued)
Plan Description (Continued)
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.
At October 1, 1998 (the latest actuarial valuation date), Plan membership consisted of the
following:
Retirees and beneficiaries currently receiving benefits and terminated
employees entitled to benefits but not yet receiving them
Current employees:
Vested 35
Non -vested 19
Total 54
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. The aggregate
actuarial cost method does not identify and separately amortize unfunded actuarial liabilities.
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 $ 1,497
Interest on net pension asset
Adjustment to annual required contribution
Annual pension cost 1,497
Contributions made 60,949
Increase in net pension asset 59,452
Net pension asset, beginning of year 32,526
Net pension asset, end of year $91,978
-21-
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
NOTE 9. DEFINED BENEFIT PENSION PLAN (Continued)
Annual Pension Cost and Net Pension Asset
The annual required contribution for the current year was determined as part of the October 1,
1998 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 Net Pension
Ended Cost (APC) APC Contributed Asset
9/30/98 $ - N/A $32,525
9/30/99 1,497 100% 91,978
-22-
REQUIRED SUPPLEMENTARY INFORMATION
VILLAGE OF KEY BISCAYNE, FLORIDA
REQUIRED SUPPLEMENTARY INFORMATION
PENSION TRUST FUND
SCHEDULE OF EMPLOYER CONTRIBUTIONS
Year Annual
Ended Required Actual Percentage
September 30, Contribution Contribution Contributed
1998 $ $ 32,525 100%+
1999 1,497 60,949 100%+
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 10/1/98
Actuarial cost method Aggregate actuarial cost method
Amortization method N/A
Remaining amortization period N/A
Asset valuation method Market value
Actuarial assumptions:
Investment rate of return* 9% per year compounded annually, net of investment
related expenses
Projected salary increases* 6%
Cost of living adjustments N/A
*Includes inflation at 4%
11
�c
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, 1999
(WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1998)
1999 1998
ASSETS
Cash and cash equivalents $ 1,836,469 $ 2,589,105
Investments 2,105,664 1,037,533
Due from other governments 27,220
Due from other funds 198,216 25,085
Property taxes receivable 55,299 24,806
Accounts receivable 359,322 243,962
Total assets $ 4,554,970 $ 3,947,711
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable and accrued liabilities $ 308,138 $ 157,465
Deposits and performance bonds 5,915 11,027
Due to other funds 120,576 176,000
Total liabilities 434,629 344,492
Fund balances:
Reserved for:
Supplemental fire aid 125,000 125,000
Beach improvements 24,600 24,600
Special relief disaster 100,000
Recreation facilities 99,860 243,500
Law enforcement seizures 262,352
Community center 30,100 30,100
Beach park and walk 572,738 259,700
Compensated absences 565,586 670,000
Subsequent year's budget 440,000 541,000
Emergencies 1,500,000 1,283,319
3,720,236 3,177,219
Unreserved:
Designated for:
Police/fire equipment and building 40,000 40,000
Community grants, maintenance and improvements 51,000 51,000
Professional fees 34,105 60,000
Inspector fees 275,000 275,000
400,105 426,000
Total fund balances 4,120,341 3,603,219
Total liabilities and fund balances $ 4,554,970 $ 3,947,711
-24-
VILLAGE OF KEY BISCAYNE, FLORIDA
GENERAL FUND
SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL
FISCAL YEAR ENDED SEPTEMBER 30, 1999
Budgetary Variance
Basis Favorable
Budget Actual (Unfavorable)
Revenues:
Property taxes
$ 6,947,916 $ 7,012,714 $ 64,798
Utility taxes 1,507,000 1,621,473 114,473
Franchise fees 692,500 740,031 47,531
Intergovernmental:
State shared revenue 789,375 807,924 18,549
Licenses and permits:
Occupational licenses 37,925 40,558 2,633
Building permits 650,000 628,114 (21,886)
687,925 668,672 (19,253)
Charges for services 102,600 457,828 355,228
Other:
Miscellaneous 22,057 22,057
Interest
250,000 231,820 (18,180)
Grants:
Safe Neighborhood 495,000 495,000
Other grants 148,000 320,116 172,116
148,000 815,116 667,116
Total revenue $ 11,125,316 $ 12,377,635 $ 1,252,319
(Continued)
-25-
VILLAGE OF KEY BISCAYNE, FLORIDA
GENERAL FUND
SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL
(Continued)
FISCAL YEAR ENDED SEPTEMBER 30, 1999
Budgetary Variance
Basis Favorable
Budget Actual (Unfavorable)
Expenditures:
General government:
Elected officials $ 25,000 $ 27,914 $ (2,914)
Administration 624,682 595,207 29,475
Village attorney 213,000 221,028 (8,028)
Total general government 862,682 844,149 18,533
Public works 561,084 425,464 135,620
Building, planning and zoning 1,102,062 1,082,177 19,885
Parks and recreation 311,599 301,942 9,657
Public safety 5,874,942 5,811,878 63,064
Non -departmental 800,082 700,146 99,936
Debt service:
Principal 895,000 895,000
Interest 241,435 241,327
Total expenditures
Other financing uses:
Expenditures of prior year reserves
Transfers out
108
1,136,435 1,136,327 108
10,648,886 10,302,083 346,803
1,017,430
1,017,430
541,000
1,017,430
(541,000)
1,558,430 (541,000)
Total expenditures and other financing uses $ 11,666,316 $ 11,860,513 $ (194,197
:OE Fitt
• aT•KfRIMor
i allI4IILil
CAPITAL PROJECTS FUNDS
Capital Projects funds are used to account for the acquisition or construction of major capital
projects not being financed by proprietary funds.
• Capital Improvement
The capital improvement fund accounts for the acquisition or construction of various major
capital projects.
• Civic Center
The Civic Center fund was established to account for the construction of the Village Civic
Center, which will include administrative offices, Fire and Police facilities, and a Village
Community Center.
VILLAGE OF KEY BISCAYNE, FLORIDA
CAPITAL PROJECTS FUNDS
COMBINING BALANCE SHEETS
SEPTEMBER 30, 1999
(WITH COMPARATIVE TOTALS FOR FISCAL YEAR ENDED SEPTEMBER 30, 1998)
ASSETS
Cash and cash equivalents
Investments
Due from other funds
Accounts receivable
Prepaid loan fees and capitalized interest
Total assets
LIABILITIES AND FUND EQUITY
Liabilities:
Accounts payable and accrued liabilities
Retainage payable
Due to other funds
Total liabilities
Fund balance:
Reserved for capital improvements
Capital
Improvement
Civic
Center
Totals
1999 1998
$ 337,743 $ 2,023,278 $ 2,361,021 $ 275,017
3,074,043 8,026,728 11,100,771 3,414,075
120,576 120,576 637,097
88,000 88,000
4,413
$ 3,499,786 $ 10,170,582 $ 13,670,368 $ 4,330,602
$ 190,255 $ $ 190,255 $ 94,624
33,543 - 33,543 77,033
35,970 162,246 198,216 24,507
259,768 162,246 422,014 196,164
3,240,018 10,008,336 13,248,354 4,134,438
Total liabilities and fund equity $ 3,499,786 $ 10,170,582 $ 13,670,368 $ 4,330,602
-27-
VILLAGE OF KEY BISCAYNE, FLORIDA
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
CAPITAL PROJECTS FUNDS
FISCAL YEAR ENDED SEPTEMBER 30, 1999
(WITH COMPARATIVE TOTALS FOR FISCAL YEAR ENDED SEPTEMBER 30, 1998)
Revenues:
Safe neighborhood
Other
Interest
Total revenues
Expenditures:
Capital outlay
Total expenditures
Excess (deficiency) of revenues
over expenditures
Other financing sources:
Operating transfers in
Bond proceeds
Total other financing sources
Excess (deficiency) of revenues and other
financing sources over expenditures
Fund balances, beginning
Capital
Improvements
$ 88,000
85,000
215,080
Civic
Center
$ - $
120,576
77,305
Totals
1999 1998
88,000 $
205,576 158,823
292,385
388,080 197,881 585,961 158,823
2,299,930 189,545 2,489,475 1,530,311
2,299,930 189,545 2,489,475 1,530,311
(1,911,850)
1,017,430
8,336 (1,903,514) (1,371,488)
1,017,430 1,881,000
10,000,000 10,000,000
1,017,430 10,000,000 11,017,430 1,881,000
(894,420) 10,008,336 9,113,916 509,512
4,134,438 4,134,438 3,624,926
Fund balances, ending $ 3,240,018 $ 10,008,336 $ 13,248,354 $ 4,134,438
-28-
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
sanitary sewer system to the unsewered areas of the community.
VILLAGE OF KEY BISCAYNE, FLORIDA
ENTERPRISE FUNDS
COMBINING BALANCE SHEETS
SEPTEMBER 30, 1999
(WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1998)
Stormwater Sanitary
Utility Solid Sewer Totals
System Waste Construction 1999 1998
ASSETS
Current assets:
Cash and cash equivalents $ 1,128,806 $ 96,542 $ 329,144 $ 1,554,492 $ 1,747,586
Due from other funds 8,562
Accounts receivable, net 94,516 18,134 112,650 630,552
Total current assets 1,223,322 114,676 329,144 1,667,142 2,386,700
Prepaid loan fees and capitalized interest
Fixed assets, net 9,517,202
43,962 43,962 43,962
353,249 9,870,451 9,860,418
Total assets $ 10,740,524 $ 114,676 $ 726,355 $ 11,581,555 $ 12,291,080
LIABILITIES AND FUND EOUITY
Current liabilities:
Accounts payable and accrued liabilities $ 82,180 $ $ $ 82,180 $ 264,671
Retainage payable 11,750 11,750 11,750
Due to other funds 470,237
Bond anticipation notes 7,200,000
Current portion of revenue bonds payable 135,000 135,000 -
Total current liabilities 228,930 228,930 7,946,658
Long-term debt:
Revolving loan
Revenue bonds payable
Total liabilities
7,065,000
723,762 723,762 723,762
7,065,000 -
7,293,930 723,762 8,017,692 8,670,420
Fund equity:
Contributed capital 2,682,901 2,682,901 2,682,901
Retained earnings 763,693 114,676 2,593 880,962 937,759
Total fund equity 3,446,594 114,676 2,593 3,563,863 3,620,660
Total liabilities and fund equity $ 10,740,524 $ 114,676 $ 726,355 $ 11,581,555 $ 12,291,080
-29-
VILLAGE OF KEY BISCAYNE, FLORIDA
ENTERPRISE FUNDS
COMBINING STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN
RETAINED EARNINGS
FISCAL YEAR ENDED SEPTEMBER 30, 1999
(WITH COMPARATIVE TOTALS FOR FISCAL YEAR ENDED SEPTEMBER 30, 1998)
Stormwater Sanitary
Utility Solid Sewer Totals
System Waste Construction 1999 1998
Operating revenue
$ 480,586 $ 269,454 $ - $ 750,040 $ 722,127
Operating expenses:
General and administrative costs 42,773 246,136 9,860 298,769 284,007
Bad debt expense - 15,000
Depreciation 269,729 269,729 269,729
Total operating expenses 312,502 246,136 9,860 568,498 568,736
Operating income (loss) 168,084 23,318 (9,860) 181,542 153,391
Non -operating revenues (expense):
Interest income 52,488 1,558 9,114 63,160 85,138
Interest expense (301,499) - (301,499) (318,240)
Total non -operating revenues (expenses) (249,011) 1,558 9,114 (238,339) (233,102)
Income (loss) before transfers (80,927) 24,876 (746) (56,797) (79,711)
Transfers out (455,000)
Net income (loss) (80,927) 24,876 (746) (56,797) (534,711)
Retained earnings, beginning 844,620 89,800 3,339 937,759 1,472,470
Retained earnings, ending $ 763,693 $ 114,676 $ 2,593 $ 880,962 $ 937,759
-30-
VILLAGE OF KEY BISCAYNE, FLORIDA
ENTERPRISE FUNDS
COMBINING STATEMENTS OF CASH FLOWS
FISCAL YEAR ENDED SEPTEMBER 30, 1999
(WITH COMPARATIVE TOTALS FOR FISCAL YEAR ENDED SEPTEMBER 30, 1998)
Stormwater Sanitary
Utility Solid Sewer Totals
System Waste Construction 1999 1998
Cash flows from operating activities:
Operating income (loss) $ 168,084 $ 23,318 $ (9,860) $ 181,542 $ 153,391
Adjustments to reconcile operating income (loss) to
net cash provided by (used in) operating activities:
Depreciation 269,729 269,729 269,729
Provision for uncollectible accounts - 15,000
Change in operating assets and liabilities:
(Increase) decrease in:
Accounts receivable 23,996 71,506 422,400 517,902 (523,407)
Interest receivable - - - 8,442
Due from other governments 8,562 8,562 (8,562)
Increase (decrease) in:
Accounts payable (80,291) (102,200) (182,491) 91,639
Retainage payable - (110,063)
Due to other funds (455,578) (5,000) (9,659) (470,237) 470,237
Total adjustments (233,582) 66,506 310,541 143,465 213,015
Net cash provided (used) by operating activities (65,498) 89,824 300,681 325,007 366,406
Cash flows from non -capital financing activities:
Transfers out (455,000)
Net cash used by non -capital
financing activities (455,000)
Cash flows from capital and relating financing activities:
Payments for construction in progress (188,522) (91,240) (279,762) (567,044)
Proceeds from revenue bonds 7,200,000 - 7,200,000
Retirement of bond anticipation notes (7,200,000) (7,200,000) Net proceeds from revolving loan 679,800
Interest paid (301,499) (301,499) (318,240)
Net cash used in capital and related
financing activities (490,021) (91,240) (581,261) (205,484)
Cash flows from investing activities:
Interest received 52,488 1,558 9,114 63,160 85,138
Net cash provided by investing activities 52,488 1,558 9,114 63,160 85,138
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents, beginning
Cash and cash equivalents, ending
(503,031) 91,382 218,555 (193,094) (208,940)
1,631,837 5,160 110,589 1,747,586 1,956,526
$ 1,128,806 $ 96,542 $ 329,144 $ 1,554,492 $ 1,747,586
-31-
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, 1999
(WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1998)
1999 1998
General fixed assets:
Land $ 13,240,657 $ 13,240,657
Buildings 730,717 587,076
Improvements other than buildings 2,957,733 974,994
Equipment 2,702,361 2,441,544
Furniture and fixtures 128,272 112,305
Construction in progress 189,545
Total general fixed assets $ 19,949,285 $ 17,356,576
Investment in general fixed assets by source:
General fund $ 13,459,810 $ 13,356,576
Capital project funds 2,489,475
Donations 4,000,000 4,000,000
Total investment in general fixed assets $ 19,949,285 $ 17,356,576
-32-
VILLAGE OF KEY BISCAYNE, FLORIDA
SCHEDULE OF GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY
SEPTEMBER 30, 1999
Improvements Furniture Construction
Other Than and in
Land Building Buildings Equipment Fixtures Progress Total
General government $ 4,000,000 $ - $ 1,994,038 $ 293,755 $ 70,418 $ 189,545 $ 6,547,756
Parks and recreation 9,240,657 143,641 942,522 137,275 8,207 10,472,302
Public safety 587,076 21,173 2,271,331 49,647 2,929,227
$ 13,240,657 $ 730,717 $ 2,957,733 $ 2,702,361 $ 128,272 $ 189,545 $ 19,949,285
-33-
VILLAGE OF KEY BISCAYNE, FLORIDA
SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY
FISCAL YEAR ENDED SEPTEMBER 30, 1999
General government
Parks and recreation
Public safety
Balance
September 30,
1998
$ 4,343,820
10,315,815
2,696,941
Additions
Balance
September 30,
Deletions 1999
$ 2,203,936 $
156,487
463,511
$ 6,547,756
10,472,302
231,225 2,929,227
$ 17,356,576 $ 2,823,934 $ 231,225 $ 19,949,285
-34-
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, 1999
(WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1998)
1999 1998
Amount to be provided for retirement of general long-term debt $ 16,138,654 $ 6,890,375
General long-term debt payable:
Compensated absences payable
Revenue bonds payable
$ 1,048,654 $ 905,375
15,090,000 5,985,000
Total general long-term debt payable $ 16,138,654 $ 6,890,375
-35-
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
1999 4,173,995 (2) 5,644,903 293,664 730,521 10,843,083
(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 (GAAP basis).
-36-
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 1,514,697 709,067 392,975 233,654 11,661,873
1999 7,012,714 668,672 807,924 1,621,473 740,031 1,295,001 231,820 12,377,635
(1) Includes charges for services, grants and other.
Notes: The Village's first year of operation was fiscal year 1992.
Includes general fund only (GAAP basis).
-37-
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
1999 992,319 380,934 35,121 4,262 208,837 1,621,473
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
1999 653,799 56,997 29,235 740,031
-38-
VILLAGE OF KEY BISCAYNE, FLORIDA
PROPERTY TAX LEVIES AND COLLECTIONS
Tax Fiscal Assessed Tax Total Percent
Year(» Year Value Levy Collected") 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 7,222,995 6,948,521 96.2
1998 1999 2,325,353,724 7,313,596 7,012,714 95.9
(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.
-39-
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
1999 2,298,267,009 27,086,715 2,325,353,724
Source: Miami -Dade County Property Appraisers Office
Note: Assessed values equal the estimated actual value.
-40-
VILLAGE OF KEY BISCAYNE, FLORIDA
PROPERTY TAX RATES
DIRECT AND OVERLAPPING GOVERNMENTS
Village of
Key Biscayne
Miami -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
1999 3.606 5.809 0.816 6.625 0.597 0.044 0.641 8.654 0.990 9.644 0.421 20.937
(1) Village established its own fire district effective October 1, 1993
Source: Miami -Dade County Property Appraisers Office
-41-
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 11.3
1999 895,000 241,329 1,136,329 10,843,083 10.5
(1) Excludes bond issuance and other costs
(2) Debt service on revenue bonds
Includes general fund only
-42-
VILLAGE OF KEY BISCAYNE, FLORIDA
SCHEDULE OF DIRECT AND OVERLAPPING BONDED DEBT
GENERAL OBLIGATION BONDS
(IN THOUSANDS)
SEPTEMBER 30, 1999
Jurisdiction
Village of Key Biscayne
Miami -Dade County
Miami -Dade County Schools
Taxable
Property
Value(1)
Net
General
Obligation
Bonded
Debt
Outstanding(2)
$ 2,325,354 $
92,200,108
92,274,937
22,290
342,536
998,028
$ 1,362,854
Percentage
Applicable
to
Key
Biscayne
100.00%
2.17(3)
2.17(3)
(1) Source: Miami -Dade County Property Appraiser's Office - Taxable Property Value reflects
January 1, 1999 amounts
(2) Source: Miami -Dade County Finance Department - Net General Obligation Bonded Debt
outstanding figures are as of September 30, 1999.
(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.
Amount
Applicable
to
Key
Biscayne
$ 22,290
7,433
21,657
$ 51,380
-43-
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) 2,003,049,232 5,985,000 0.30 632
1999 9689 (5) 2,218,174,208 22,290,000 1.1 2,300
(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
(5) As of July 1999 - University of Florida Economic and Business Research
-44-
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)
1993 1994 1995 1996 1997 1998 1999
Miami -Dade County 7.7 7.9 6.8 7.8 7.1 6.7 5.9
Village of Key Biscayne 3.6 3.6 3.1 3.6 3.3 3.1 2.7
* Source: Bureau of Census, Income Division
** Source: State Department of Labor
-45-
VILLAGE OF KEY BISCAYNE, FLORIDA
PROPERTY VALUE, CONSTRUCTION AND BANK DEPOSITS
Fiscal
Year
Residential
Commercial
Total Total
Permits # of # of of
Issued Units Valuation Units Valuation Construction
1992 35 25 $ 638,483 10 $ 401,058 $ 1,039,541 $20,282,998 $
(000s Omitted)
County Village
Bank Bank
Deposits (1) Deposits (2)
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
1999 2,711 1,073 94,287,095 295 56,792,994 151,080,089 39,633,149 377,060
(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.
-46-
VILLAGE OF KEY BISCAYNE, FLORIDA
PRINCIPAL TAXPAYERS
SEPTEMBER 30, 1999
Taxpayer
Ocean Club, Inc.
Sonesta Beach Resort, LP
GB Hotel Partners, Ltd.
Grand Bay Tower Associates
Key Biscayne Shopping Center
Galleria of Key Biscayne
PITI, Inc.
Red Dragon's Sands, Ltd.
Finivest Investment, Et. Al. (Key Colony)
Caroline T. Perkins
Source: Miami -Dade County Appraisers Office
Taxable
Valuation
$ 39,590,009
28,700,000
23,341,830
12,855,305
8,672,526
7,369,463
5,251,313
4,977,558
4,193,744
3,547,661
$ 138,499,409
% of
Total
Assessed
Valuation
1.80%
1.30%
1.06%
0.58%
0.39%
0.33%
0.24%
0.23%
0.19%
0.16%
6.28%
-47-
VILLAGE OF KEY BISCAYNE, FLORIDA
MISCELLANEOUS STATISTICAL DATA
SEPTEMBER 30, 1999
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:
Attendance Centers 2
Number of Students 1,344
Number of Teachers 89
Miami -Dade County Water & Sewer Authority
Number of Customers
Average Daily Consumption
2,019
650,000 gallons
Sewers:
Number of Customers 989
Fire Hydrants 233
Building Permits Issued 2,711
Recreation and Culture:
Number of Parks 3
Number of Libraries 1 (Operated by Miami -Dade County)
Number of Tennis Centers 1
Number of Recreational Centers 1
Employees:
Full Time
92
-48-
COMPLIANCE SECTION
Rachlin Cohen 6z Holtz LLP
Certified Public Accountants & Consultants
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, 1999 and for the year then ended, and have issued our report dated February
1, 2000. 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.
-49-
One Southeast Third Avenue, Tenth Floor, Miami, Florida 33131 • Tel 305-377-4228 • Fax 305-377-8331
Offices in Miami • Ft Lauderdale • Boca Raton • West Palm Beach • Stuart
www rchcpa corn
Member of Summit International Associates, Inc nrth offices in principal cities throughout the ii of Id
Member of the American Institute of Certified Public Accountants and member of the Florida Institute of Ceititied Public Accountants
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 solely for the information and use of the Mayor, Village Council, management and
the Auditor General of the State of Florida, and is not intended to be and should not be used by anyone
other than these specified parties. However, this report is a matter of public record and its distribution is
not limited.
gle,/"..,. �p44,4
214 Lip
Miami, Florida
February 1, 2000
-50-
Rachlin Cohen & Holtz LLP
Certified Public Accountants & Consultants
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, 1999, and have issued our report thereon dated
February 1, 2000. 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.
In connection with our audit of general purpose financial statements of the Village for the year ended
September 30, 1999, 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 1999, 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.
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.
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One Southeast Third Avenue, Tenth Floor, Miami, Florida 33131 • Tel 305-377-4228 • Fax 305-377-8331
Offices in Miami • Ft Lauderdale • Boca Raton • West Palm Beach • Stuart
www rchcpa com
Member of Summit International 4ssociates, Inc isith offices in principal cities throughout the ii oild
\Iembei of the American Institute of Certified Public Accountants and member of the Florida Institute of Certified Public Aecountanh
Honorable Mayor, Village Council and Village Manager
Village of Key Biscayne, Florida
Page Two
6. The annual financial report for the year ended September 30, 1999 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 solely for the information and use of the Mayor, Village Council, management, and
the Auditor General of the State of Florida and is not intended to be and should not be used by anyone other
than these specified parties. However, this report is a matter of public record and its distribution is not
limited.
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Miami, Florida
February 1, 2000
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VILLAGE OF KEY BISCAYNE, FLORIDA
SCHEDULE OF FINDINGS
FISCAL YEAR ENDED SEPTEMBER 30, 1999
I. CURRENT YEAR COMMENTS AND RECOMMENDATIONS
1. New Pronouncement
Governmental Accounting Standards Board Statement No. 34, Basic Financial Statements — and
Management's Discussion and Analysis — for State and Local Governments, establishes new
financial reporting requirements for state and local governments throughout the United States.
When implemented, it will create new information and will restructure much of the information that
governments have presented in the past. These new requirements were developed to make annual
financial reports more comprehensive and easier to understand and use. The new reporting model
will include government -wide financial statements, as well as fund financial statements, as well as
management's discussion and analysis section. Implementation will be required for the fiscal year
ending September 30, 2004. However, many of the reporting requirements need to be addressed
several years before the required implementation date. We recommend that the Village review the
new requirements and plan accordingly.
II. PRIOR YEAR RECOMMENDATIONS NOT IMPLEMENTED IN CURRENT YEAR
1. 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 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 and Current Status
The Village has still not centralized the recordkeeping of the compensated absences.
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VILLAGE OF KEY BISCAYNE, FLORIDA
SCHEDULE OF FINDING
(Continued)
II. PRIOR YEAR RECOMMENDATIONS NOT IMPLEMENTED IN CURRENT YEAR
(Continued)
2. 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 and Current Status
RCH encountered this problem in the current year, however, the Village will work with the Pension
Board to clarify and correct this situation.
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Village Seal Description
One of the oldest and most recognizable landmarks in South Florida, the lighthouse was
first constructed in 1825. It has a colorful, well -documented history. It stands in the Bill Baggs
Cape Florida State Recreation Area. Like all lighthouses, it is a symbol of familiar homecom-
ing to sailors, fishermen, and landlubbers alike. It also represents man-made structures of
lasting quality, strength and safety in an uncertain world.
The coconut palm, threatened by disease in Florida in recent years, has been a popular
symbol of peaceful nature for many tropical areas around the world. Key Biscayne was
once a plantation for this versatile tree.
The two sea birds, against the backdrop of the moon, stand for the animals with whom
we share our environment.
The sun, sustainer of life, which figures prominently in many municipal emblems around
the state, usually depicted at high noon, has just disappeared below the horizon, creating
one of those sunsets that occur every once in a while. This kind of mood and feeling evoke
a universal human reaction — a powerful visual reminder of the potential beauty and transi-
tory nature of all things.
The moon is shown on our seal not just to be different from other communities, not only
for its magical qualities, but also because we have been told that one of the earliest local
Indian dialects contained a word -picture phrase, "Bischiyano," meaning, simply — "Favorite
Path of the Rising Moon."
Adoption of the Village Seal took place on June 8, 1993 and adoption of the description
of the Village Seal took place on August 10, 1993.