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HomeMy Public PortalAboutCAFR 2001.pdfVILLAGE OF KEY BISCAYNE, FLORIDA COMPREHENSIVE ANNUAL FINANCIAL REPORT FISCAL YEAR ENDED SEPTEMBER 30, 2001 Prepared by: THE FINANCE DEPARTMENT VILLAGE OF KEY BISCAYNE, FLORIDA COMPREHENSIVE ANNUAL FINANCIAL REPORT FISCAL YEAR ENDED SEPTEMBER 30, 2001 TABLE OF CONTENTS PAGE I. INTRODUCTORY SECTION Letter of Transmittal i Village Officials xii Certificate of Achievement for Excellence in Financial Reporting xiii Village Organizational Chart xiv 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 24 COMBINING, INDIVIDUAL FUND AND ACCOUNT GROUP STATEMENTS AND SCHEDULES GENERAL FUND: Comparative Balance Sheets 25 Schedule of Revenues and Expenditures - Budget and Actual 26 CAPITAL PROJECTS FUNDS: Combining Balance Sheets 28 Combining Statements of Revenues, Expenditures and Changes in Fund Balances 29 ENTERPRISE FUNDS: Combining Balance Sheets 30 Combining Statements of Revenues, Expenses and Changes in Retained Earnings 31 Combining Statements of Cash Flows 32 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 33 Schedule of General Fixed Assets By Function and Activity 34 Schedule of Changes in General Fixed Assets By Function and Activity 35 GENERAL LONG-TERM DEBT ACCOUNT GROUP: Schedule of General Long -Term Debt 36 III. STATISTICAL SECTION General Governmental Expenditures by Function 37 General Governmental Revenues by Source 38 Utility Tax Revenue By Source; Franchise Fee Revenue by Source 39 Property Tax Levies and Collection 40 Assessed and Estimated Actual Value of Taxable Property 41 Property Tax Rates Direct and Overlapping Governments 42 Ratio of Annual Debt Service Expenditures for Net Bonded Debt to General Governmental Expenditures 43 Schedule of Direct and Overlapping Debt - General Obligation Bonds 44 Ratio of Net Bonded Debt to Assessed Value and Per Capita 45 Demographic Statistics 46 Property Value, Construction and Bank Deposits 47 Principal Taxpayers 48 Miscellaneous Statistical Data 49 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 50 Management Letter in Accordance with the Rules of the Auditor General of the State of Florida 52 Report of Independent Certified Public Accountants on Compliance and Internal Control Over Compliance Applicable to Each Major State Financial Assistance Project 54 Schedule of Expenditures of State Financial Assistance 56 Note to Schedule of Expenditures of State Financial Assistance 57 Schedule of Findings and Questioned Costs 58 INTRODUCTORY SECTION VILLAGE OF KEY BISCAYNE linage Council Joe I Rasuo, .19apo Robert Oldakou ski, Vice Mayo Scott Bass Martha Fd«-Icon Broucek Alan I I Fern Mot time] Fried James L Peters LilLtge Manager C Samuel Kissinger Office of the Village Manager January 20, 2002 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, 2001, 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 2000 Certificate of Achievement for Excellence in Financial Reporting. The financial section includes the report of the independent certified public accountants on the general purpose financial statements and the required notes and the combining, individual fund and account group financial statements and schedules. The statistical section includes unaudited selected financial and demographic information. The compliance section contains those reports required to comply with Government Accounting Standards and Rules of the Auditor General of the State of Florida. Reporting Entity and its Services The Village includes for financial reporting purposes, in conformance with Governmental Accounting Standards Board (GASB) Statement Number 14, all funds and account groups for which the Village is financially accountable. The Village currently provides services associated with the following departments: • Building, Zoning and Planning • Public Safety • Fire Rescue • Recreation • Public Works • Parks and Recreation • Finance and Administrative Services • Office of the Village Clerk • Office of the Village Manager • Office of the Village Attorney 85 West McIntyre Street • Key Biscayne, Florida 33149 • (305) 365-5514 • Fax (305) 365-8936 Honorable Mayor, Village Council and Citizens Village of Key Biscayne Government Structure The Village of Key Biscayne was incorporated on June 18, 1991 and operates under a Council -Manager form of government. The Village Council is comprised of the Mayor and six members and is responsible for enacting ordinances, resolutions and regulations governing the Village as well as appointing the members of various advisory boards, the Village Manager, Village Clerk and Village Attorney. As Chief Administrative Officer, the Village Manager is responsible for carrying out the policies and ordinances 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. Bill Baggs Cape Florida State Recreation Area, a park of approximately 415 acres, borders the Village to the north by Crandon Park, a 960 -acre park administered by Miami -Dade County, and to the south. The Village currently has an area of approximately 1.25 square miles and population according to the 2000 Census at 10,500 year-round and 4,000 seasonal residents. Major Initiatives For the Year The Village's staff, following specific directives from the Village Council, has been actively involved in a variety of projects designed to provide the Island's residents with the best environment through responsible government. During the fiscal year 2001, 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, hiring of a Senior Coordinator and the groundbreaking for construction of the Village Civic Center complex. Fiscal year 2001 witnessed many improvements and additions to the Village's public infrastructure. Lighting projects continued throughout the Village, beautification, and installation of sidewalks, curbing and construction of the Village Green Gazebo/Bandstand. Construction of the Village Civic Center complex commenced in April 2001. This project will consist of a Fire Rescue Station, a Police/Administration Building and a Community Theater. The total cost of the project including land acquisitions and professional fees will approximate $30 million. The Civic Center will derive funding from Series 1999 Bonds that were issued in the amount of $10 million, and Series Honorable Mayor, Village Council and Citizens Village of Key Biscayne 2000 Bonds issued in the amount of $10 million and a third traunche is anticipated for fiscal year 2002. The completion date for this project is targeted for summer 2003. Ornamental/up-lighting along East Enid Drive, Seaview Drive and portions of Crandon Boulevard were completed in fiscal year 2001. Installation of these lights was done for safety as well as beautification along these streets. The Village continued with the addition of sidewalks on Westwood, West McIntyre, West Heather Drive and Woodcrest Road. In conjunction with the sidewalk project brickpaver crosswalks and curbing were installed to provide beauty as well as traffic calming. The Village Green Gazebo/Bandstand located near the northwest corner of the Village Green was designed to address a series of functions for the Village. It can be a setting for informal concerts as well as being evocative, bright and whimsical piece of urban sculpture. Lastly, the first Senior Coordinator for the Village began work in fiscal year 2001. This person will provide programming and information to the Seniors of Key Biscayne. Working with residents, senior programs have been developed to meet the needs of this population. Adults and seniors can participate in excursions to area attractions, events, classes, seminars and cultural activities. For the Future Village of Key Biscayne residents can be assured that during fiscal year 2002, their government would continue to provide them with more and better services. The Building, Zoning and Planning Department will continue to improve the quality of services offered to our citizens. During fiscal year 2002, the department will initiate a new service that enables our residents, contractors, and architects to track their permit applications and inspections through the Internet. When fully developed, building permits can be printed in offices and homes, and permits and inspections can be requested via the Internet without having to visit our offices. Keeping with the improvement theme, the Public Works Department will also be involved in numerous infrastructure improvements in the FY 2002. Major projects for 2002 include: expansion of the sidewalk project, develop Crandon Boulevard Master Plan, and completion of the second phase of the Village Ocean Park. In addition, Public Works will continue to oversee the contracts awarded for residential refuse collection, street sweeping and catch basin cleaning and maintenance, as well as Village landscaping and maintenance contractors. Honorable Mayor, Village Council and Citizens Village of Key Biscayne Important in maintaining and enhancing of the Villagers' unique lifestyle are the activities of the Recreation Department. During fiscal year 2002, the Department will continue to work with the Keep Seniors on Key Biscayne Committee (KSOKB) to develop programs that will meet the information, recreation, and service needs of this valued population. For fiscal year 2002 the Village Recreation Department will host a Seniors Health Fair, and start a senior volunteer telephone reassurance program. The department will also host the following special events; Halloween Weekend Celebration, Key Biscayne Lighthouse Run & Walk, Concert Series, Winterfest, Spring Egg Hunt, and the Fourth of July Fireworks. The department continues to assist civic groups with their special events as well contract with outside agencies to provide additional programs and facilities. 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 approximately $42,000 in FY 2001 funds to the library, the facility will provide an additional 25 hours per week of operation, including Sundays, between October and May. The Village's Fire Department is also anticipating fiscal year 2002 to be most productive. The Department will continue its highly successful public service programs such as citizen CPR classes, blood pressure testing and school age fire safety training and education. The Department will also continue its fire prevention inspection program in all hi -rise and mercantile structures in the Village. Another very important program offered by the Department is the Community Emergency Response Team (C.E.R.T.) Program. C.E.R.T. consists of ten to fifteen members who are trained to prepare for and respond after a disaster. Lastly, other significant events that the Department participates in include the Fourth of July celebration, Lighthouse Run and Emergency Medical Services Week activities. Departmental Focus Each year the City will focus attention on the efforts and accomplishments of a selected department. This year, the Police Department has been selected for this purpose. The Department is composed of 29 police officers and 10 civilian personnel. Its structure is divided into two divisions: the Patrol Division, consisting of 18 patrol officers, three lieutenants, and four dispatchers which are divided into three shifts. This Division responds to initial calls for service and is supported by the Support Services Division, consisting of one lieutenant, one DARE /School Resource Officer, Criminal Investigator, four Public Service Aids and five part-time crossing guards. The Office of the Chief administers and coordinates the overall police operation with the Chief of Police reporting directly to the Village Manager regarding all matters of public safety. The Chief, Deputy -iv- Honorable Mayor, Village Council and Citizens Village of Key Biscayne Chief, Records Manager and Administrative Aide coordinate recruiting, hiring and training, and maintain and distribute all reports and records for the police department. The department operates in an effective and efficient manner with one of the lowest officer to resident ratios in the county. Violent crime in Key Biscayne has been almost non-existent and property crimes such as burglary averaged less than three per month and we have averaged less than one stolen car per month. Performance indicators clearly show the department's service is outstanding based on the citizen surveys conducted. On the Police Citizen Satisfaction Survey 93% of the residents rated services good to excellent and on the Village Chamber of Commerce Survey 92% of those surveyed rated Key Biscayne a very safe community to work and reside. Children represent 2.4% of the population. Nationally young people tend to have more accidents, more police contacts, take more chances and receive more injuries than other age groups. For fiscal year 2002 the Police Department will conduct a number of police safety programs to help to ensure their safety and security such as: bicycle rodeos, helmet and razor safety, "Know the Law" informational flyers for bikes, roller blading and motorized go-peds. Children will be given "dog tags" with their name, school and their emergency phone number in the event of an accident or if a young child is lost, and we will begin a program to educate and enforce child restraint devices in cars. Other programs continued from previous years include the "Missing Persons Education" program and "A Child is Missing" technology, an automated calling system to locate missing children and a "Be Safe From Dogs" program. To further prepare police officers to carry out their duties, officers will receive training in crowd and riot control, dealing with confrontational situations, sensitivity training, water rescue, and crime scene evidence and processing. The Village had the lowest crime rate of any city in Miami -Dade County and the second lowest crime rate for all of the cities of its size throughout Florida. 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. -v- Honorable Mayor, Village Council and Citizens Village of Key Biscayne Budgetary control is maintained at the departmental 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. The amount of General Fund revenues and expenditures from various sources are shown in the following schedule: -vi- Honorable Mayor, Village Council and Citizens Village of Key Biscayne REVENUES (GAAP Basis) Sources Property Taxes Utility Taxes Franchise Fees Intergovernmental Licenses and Permits Charges for Services Other Interest Grants Total Revenues FY 2001 $ 8,738,608 1,772,208 783,513 930,169 1,308,229 440,136 18,400 291,408 278,345 Net % FY 2000 Changes Change $ 7,799,633 1,723,902 729,998 889,704 1,316,641 224,177 560 315,399 124,375 $ 938,975 11% 48,306 3 53,515 7 40,465 5 (8,412) (1) 215,959 96 17,840 100+ (23,991) (8) 153,970 100+ $14,561 016 $13,124,389 $1,436 627 11% EXPENDITURES AND TRANSFERS (GAAP Basis) Function General Government Public Works Building, Zoning & Planning Parks and Recreation Public Safety Debt Service Non -Departmental Capital Outlay Transfers to Capital Improvement Fund FY 2001 $ 1,270,062 933,096 1,235,529 452,804 6,172,932 1,606,875 630,656 272,722 1,250,001 Net % FY 2000 Changes Change $ 1,068,710 $201,352 19% 830,360 102,736 12 1,227,696 380,502 6,068,147 1,530,767 694,643 274,078 1,000,000 7,833 1 72,302 19 104,785 2 76,108 5 (63,987) (9) (1,356) (1) 250,001 25 $13,824,677 $13,074,903 $749,774 6% -vii- Honorable Mayor, Village Council and Citizens Village of Key Biscayne 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. A second series of revenue bonds was issued in 2000. 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 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, 2001, 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 -viii- Honorable Mayor, Village Council and Citizens Village of Key Biscayne the State Constitution. Each member is required to contribute 12% of his/her September 30, 2001. This rate will be adjusted each year thereafter, based on the actuarial valuation of the plan. The Plan also receives funding from the State of Florida under F.S. 175 and 185. The the Plan as of September 30, 2001 were approximately $1,530,000. Other Plans Administered by the Village salary until most recent net assets in 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 approximately $3,600,000 in investments as of September 30, 2001. 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, 2001 were approximately $1,520,000. 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 or disclose this Plan in their financial statements. 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, 2001, the general fixed assets acquired amount to approximately $30,600,000. Major additions for fiscal year 2001 were for public safety vehicles and imaging equipment for the Clerk's office and construction costs associated with the new police and administrative building and civic center. Debt Administration The Village of Key Biscayne has four 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 Honorable Mayor, Village Council and Citizens Village of Key Biscayne to purchase the land for the Village Green. The outstanding balance on September 30, 2001 was $3,180,000; 2) $7,200,000 in Stormwater Utility Revenue Bonds were issued January 26, 1999 from Bank of America at 4.13% for 20 years. The outstanding balance at September 30, 2001 was $6,940,000; 3) a $10,000,000 Land Acquisition and Capital Improvement Revenue Bond, Series 1999 at 4.715% for 20 years to purchase land and construct a Village Civic Center building. The outstanding balance at September 30, 2001 was $10,000,000; 4) A $10,000,000 Capital Improvement Revenue Bond, Series 2000 at 5.240% for 20 years to continue construction of the Village Civic Center building. The outstanding balance at September 30, 2001 was $10,000,000. Both Capital Improvement Revenue bonds were 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 Surplus Trust Fund administered by the State Board of Administration, which as of September 30, 2001 had a balance of $254,585 in the General Fund and $519,389 in the Law Enforcement Trust Fund, $72,294 in the Solid Waste Fund, $333,255 in the Sanitary Sewer Improvement Fund, $1,035,533 in the Capital Improvement Fund and $15,024,222 in the Civic Center Fund. Risk Management The Village is insured with the Coregis Florida Cities Program for liability and property coverage and with the Preferred Governmental Insurance Trust from 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, 2000. 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, 2000. The award has been received each year since 1993. -x- Honorable Mayor, Village Council and Citizens Village of Key Biscayne In order to receive these awards, a governmental unit must publish an easily readable and efficiently organized CAFR and a budget document that meets program criteria as a policy document, as an operations guide, as a financial plan and as a communications device. The awards are valid for a period of one year only. We believe our current CAFR and budget continue to conform to program requirements and we have submitted them to the GFOA to determine their eligibility. 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 conduct of their independent audit of the Village's financial records and transactions. Respectfully submitted, C. Samuel Kissinger Village Manager VILLAGE OF KEY BISCAYNE, FLORIDA VILLAGE OFFICIALS SEPTEMBER 30, 2001 VILLAGE COUNCIL Joe I. Rasco, Mayor Mortimer Fried, Vice Mayor Scott Bass Martha Fdez-Leon Broucek Alan H. Fein Robert Oldakowski James L. Peters VILLAGE MANAGER C. Samuel Kissinger VILLAGE CLERK Conchita H. Alvarez, CMC VILLAGE ATTORNEY Weiss, Serota & Helfman, P.A. FINANCE DIRECTOR Moyer & Associates/Severn Trent Services VILLAGE AUDITORS Rachlin Cohen & Holtz LLP Certified Public Accountants & Consultants VILLAGE OF KEY BISCAYNE, FLORIDA 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, 2000 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. Otf/igfi'l A4‘tr Pr s ent yoz, ,,, Executive Director Organizational Chart VOTERS OF KEY BISCAYNE Village Council Local Planning Agency Village Clerk Special Master Village Manager Village Attorney Assistant to the Manager Police/Fire Retirement Board Department of Building, Zoning and Planning Building Zoning Planning Code Assistance Department of Emergency Services Fire Rescue Police Department of Recreation Special Events Sports and Athletics Senior Services I Programs and Tours Department of Public Works Village Engineer] Contract Supervisor Stormwater Management Refuse I Collection L and Recycling Maintenance Department of Finance and Administrative Services Accounting Benefits Risk Management - xiv - FINANCIAL SECTION RCH Rachlin Cohen & Holtz UP 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, 2001, 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 auditing standards generally accepted in the United States 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 general purpose 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, 2001, and the results of its operations and the cash flows of its proprietary fund type for the year then ended in conformity with accounting principles generally accepted in the United States. In accordance with Government Auditing Standards, we have also issued a report dated November 29, 2001 on our consideration of the Village's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit. Our audit was conducted for the purpose of forming an opinion on the general purpose financial statements taken as a whole. The accompanying schedule of expenditures of state financial assistance is presented for purposes of additional analysis as required by the Chapter 10.550, Rules of the Auditor General, and the combining, individual fund and account group statements and schedules as listed in the table of contents and the required supplementary information on page 25 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. One Southeast Third A\ enue, Tenth Floor, Miami, Florida 33131 • Tel 305-377-4228 • Fax 305-377-8331 Offices in Miami • Ft Lauderdale • West Palm Beach • Stuart rchcpa corn tilemhei otiununrtInteinahonal \,souate, In, nithoth,e,mpnnipal,itie, throughout the tuiId 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. gazdAeL eWce...t -i ,7viret 6 e-i'l Miami, Florida November 29, 2001 GENERAL PURPOSE FINANCIAL STATEMENTS (Combined Statements - Overview) VILLAGE OF KEY BISCAYNE, FLORIDA COMBINED BALANCE SHEET ALL FUND TYPES AND ACCOUNT GROUPS SEPTEMBER 30, 2001 (WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 2000) ASSETS AND OTHER DEBITS Cash and cash equivalents Investments Due from other funds Property taxes receivable Other receivables Capitalized loan fees and interest Fixed assets, net Prepaid expenses Amount to be provided for retirement of general long-term debt Total assets and other debits LIABILITIES. EQUITY AND OTHER CREDITS Liabilities: Accounts payable and accrued liabilities Retainage payable Deposits and performance bonds Due to other funds Revolving loan Rebatable arbitrage Compensated absences payable Revenue bonds payable Total liabilities Equity and other credits. Investment in general fixed assets Contributed capital Retained earnings Fund balance: Reserved Unreserved Designated Total equity and other credits Total liabilities, equity and other credits Governmental Fund Types Capital General Projects Proprietary Fiduciary Fund TypeR Fund Type Trust and Enterprise Agency $ 4,025,611 $ 16,070,542 $ 716,030 $ - $ 1,098,385 2,197,725 932,230 1,512,043 1,501,819 - 36,673 510,668 70,820 152,696 157,913 259,584 9,342,613 Account Groups General General Fixed Assets 15,105 30,598,888 $ Long -Term Debt 24,562,060 $ 5,671,337 $ 19,993,602 $ 11,408,370 $ 1,527,148 $ 30,598,888 $ 24,562,060 $ 673,821 $ 376,944 $ 72,899 $ 139,244 1,410 1,501,819 61,281 887,983 6,940,000 2,238,331 516,188 7,900,882 3,158,006 18,806,952 275,000 670,462 2,682,901 824,587 1,527,148 30,598,888 3,433,006 19,477,414 3,507,488 1,527,148 30,598,888 179,962 1,202,098 23,180,000 Totals (,Memorandum Onlvl 2001 2000 $ 20,812,183 $ 6,394,932 5,740,383 10,514,055 1,501,819 83,978 36,673 19,241 754,506 1,007,812 259,584 186,018 39,941,501 34,767,601 152,696 24,562,060 15,387,589 $ 93,761,405 $ 68,361,226 $ 1,123,664 139,244 1,410 1,501,819 887,983 179,962 1,263,379 30,120,000 $ 566,267 46,454 83,978 865,818 97,165 1,135,424 21,095,000 24,562,060 35,217,461 23,890,106 30,598,888 2,682,901 824,587 23,492,106 945,462 25,151,069 2,682,901 834,321 15,487,829 315,000 58,543,944 44,471,120 $ 5,671,337 $ 19,993,602 $ 11,408,370 $ 1,527,148 $ 30,598,888 $ 24,562,060 $ 93,761,405 $ 68,361,226 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, 2001 (WITH COMPARATIVE TOTALS FOR FISCAL YEAR ENDED SEPTEMBER 30, 2000) Capital Totals General Projects (Memorandum Only) Fund Funds 2QQ1 2044 Revenues: Property taxes $ 8,738,608 $ $ 8,738,608 $ 7,799,633 Utility taxes 1,772,208 1,772,208 1,723,902 Franchise fees 783,513 783,513 729,998 Intergovernmental 930,169 930,169 889,704 Licenses and permits 1,308,229 1,308,229 1,316,641 Charges for services 440,136 440,136 224,177 Interest 291,408 1,051,565 1,342,973 1,165,921 Grants 278,345 533,652 811,997 124,375 Other 18.400 18,400 Total revenues 14,561,016 1,585,217 16,146,233 13,974,351 Expenditures: Current: General government 1,270,062 1,270,062 1,068,710 Public works 933,096 933,096 830,360 Building, zoning, and planning 1,235,529 1,235,529 1,227,696 Parks and recreation 452,804 452,804 380,502 Public safety 6,172,932 6,172,932 6,068,147 Non -departmental 630,657 630,657 694,643 Capital outlay 272,722 5,030,186 5,302,908 5,173,171 Debt Service: Principal 975,000 975,000 935,000 Interest 631,875 631,875 595,767 Total expenditures 12,574,677 5,030,186 17,604,863 16,973,996 Excess (deficiency) of revenues over expenditures 1,986,339 (3,444,969) (1,458,630) (2,999,645) Other financing sources (uses): Operating transfers in Operating transfers out Bond proceeds Total other financing sources (uses) Excess (deficiency) of revenues and other financing sources over expenditures and other financing uses Fund balances, beginning Residual equity transfers Fund balances, ending (1,250,000) 1,250,000 1,250,000 1,000,000 (1,250,000) (1,000,000) 10,000,000 10,000,000 (1,250,000) 11,250,000 10,000,000 736,339 7,805,031 8,541,370 (2,999,645) 4,169,827 10,199,223 14,369,050 17,368,695 (1,473,160) 1,473,160 $ 3,433,006 $ 19,477,414 $ 22,910,420 $ 14,369,050 See notes to general purpose financial statements. -4- VILLAGE OF KEY BISCAYNE, FLORIDA STATEMENT OF REVENUES AND EXPENDITURES BUDGET AND ACTUAL - GENERAL FUND FISCAL YEAR ENDED SEPTEMBER 30, 2001 Budgetary Variance Basis Favorable Budget Actual (Unfavorable), Revenues: Property taxes Utility taxes Franchise fees Intergovernmental Licenses and permits Charges for services Interest Grants Other 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 $ 8,556,788 1,855,000 740,000 900,000 938,687 103,020 250,000 50,250 13,393,745 $ 8,738,608 $ 181,820 1,772,208 (82,792) 783,513 43,513 930,169 30,169 1,308,229 369,542 440,136 337,116 291,408 41,408 278,345 228,095 18,400 18,400 14,561,016 1,167,271 1,074,557 1,193,045 757,589 835,866 1,286,950 1,237,837 527,812 473,255 6,377,222 6,385,772 752,860 638,027 975,000 975,000 631,403 631,875 12,383,393 12,370,677 1,010,352 (118,488) (78,277) 49,113 54,557 (8,550) 114,833 (472) 12,716 2,190,339 1,179,987 239,648 (204,000) (443,648) (1,250,000) (1,250,000) (1,010,352) (1,454,000) (443,648) $ $ 736,339 $ 736,339 See notes to general nurnose financial ctatementc VILLAGE OF KEY BISCAYNE, FLORIDA COMBINED STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS ENTERPRISE FUNDS FISCAL YEAR ENDED SEPTEMBER 30, 2001 (WITH COMPARATIVE TOTALS FOR FISCAL YEAR ENDED SEPTEMBER 30, 2000) 2001, 2000 Operating revenue $ 810,662 $ 781,477 Operating expenses: General and administrative costs 349,580 345,595 Depreciation 273,919 273,919 Total operating expenses 623,499 619,514 Operating income 187,163 161,963 Non -operating revenue (expense): Interest income Interest expense Total non -operating expense 89,852 84,194 (286,749) (292,798) (196,897) (208,604) Net loss (9,734) (46,641) Retained earnings, beginning 834,321 880,962 Retained earnings, ending $ 824,587 $ 834,321 See notes to general purpose financial statements. -6- VILLAGE OF KEY BISCAYNE, FLORIDA COMBINED STATEMENT OF CASH FLOWS ENTERPRISE FUNDS FISCAL YEAR ENDED SEPTEMBER 30, 2001 (WITH COMPARATIVE TOTALS FOR FISCAL YEAR ENDED SEPTEMBER 30, 2000) 2001 2000 Cash flows from operating activities: Operating income $ 187,163 $ 161,963 Adjustments to reconcile operating income to net cash provided by operating activities: Depreciation 273,919 273,919 Changes in operating assets and liabilities: Increase in: Accounts receivable (36,291) (10,097) Interest receivable (72,441) (142,056) Increase (decrease) in: Accounts payable and accrued liabilities 68,710 (77,991) Retainage payable - (11,750) Due to other funds (33,488) 33,488 Total adjustments 200,409 65,513 Net cash provided by operating activities 387,572 227,476 Cash flows from capital and related financing activities: Payments for construction in progress (20,000) Payments on revenue bonds (260,000) Net proceeds from revolving loan 22,165 142,056 Interest paid (286,749) (292,798) Net cash used by capital and related financing activities (264,584) (430,742) Cash flows from investing activities: Purchase of investments (932,230) - Interest received 89,852 84,194 Net cash provided (used) by investing activities (842,378) 84,194 Net decrease in cash and cash equivalents (719,390) (119,072) Cash and cash equivalents, beginning 1,435,420 1,554,492 Cash and cash equivalents, ending $ 716,030 $ 1,435,420 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, 2001 (WITH COMPARATIVE TOTALS FOR FISCAL YEAR ENDED SEPTEMBER 30, 2000) 2001 ADDITIONS Contributions: Plan member State Total contributions Investment earnings (losses) Total additions DEDUCTIONS Distributions Administrative expenses Total deductions Net increase Net assets held in trust for pension benefits: Beginning of year End of year $ 379,240 $ 479,749 230,370 110,700 609,610 590,449 (378,408) 74,462 231,202 664,911 110,607 116,846 27,226 37,029 137,833 153,875 93,369 511,036 1,433,779 922,743 $ 1,527,148 $ 1,433,779 See notes to general purpose financial statements. -R- NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS VILLAGE OF KEY BISCAYNE, FLORIDA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS SEPTEMBER 30, 2001 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 accounting principles generally accepted in the United States (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. 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) 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) statements issued on or before November 30, 1989 except those that are contradicted by a Governmental Accounting Standards Board (GASB) pronouncement in accounting and reporting for its proprietary operations. The proprietary fund includes the following fund type: The enterprise funds are used to account for those operations that are financed and operated in a manner similar to a 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 (accrual basis of accounting). 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 for police officers and firefighters. Plan member contributions are recognized in the period in which the contributions are due. Employer and state contributions to the plan are recognized when due and when the employer has made a formal commitment to provide the contributions. Benefits and refunds are recognized when due and payable in accordance with the terms of the 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 funds. 3. Budgets and Budgetary Accounting An annual appropriated budget is prepared for the general fund. 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) The Village follows these procedures in establishing the budgetary data reflected in the financial statements: (a) The Village Manager submits to the Council a proposed operating budget for the ensuing fiscal year. The operating budget includes appropriations and the means of financing them with an explanation regarding each expenditure that is not of a routine nature. (b) Public hearings are conducted to obtain taxpayer comments. (c) Prior to October 1, the budget is legally enacted through passage of an ordinance. (d) The Village Council, by motion, may make supplemental appropriations for the year up to the amount of revenues in excess of those estimated. During fiscal year ended September 30, 2001, there was one supplemental appropriation in the amount of $35,000. (e) Formal budgetary integration is employed as a management control device for the general fund. (f) The budget for the general fund is adopted on a basis consistent with generally accepted accounting principles (GAAP), except for certain unbudgeted expenditures of prior year reserves. (g) The Village Manager is authorized to transfer part or all of an encumbered appropriation balance within departments within a fund; however, any revisions that alter the total appropriations of any department or fund must be approved by the Village Council. The classification detail at which expenditures may not legally exceed appropriations is at the department level. For the year ended September 30, 2001, expenditures exceeded appropriations in general government activities by $118,488, in public works by $78,277 and in public safety by $8,550, as presented in the Statement of Revenues and Expenditures — Budget and Actual — General Fund. (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. There were no budget amendments during the year. 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 OF KEY BISCAYNE, FLORIDA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS (Continued) NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 4. Deposits and Investments (Continued) Village administration is authorized to invest in those instruments authorized by the Florida Statutes. Investments, which consist of funds held with the State Board of Administration Investment Pool, are reported at its fair value of its position in the pool, which is the same as the value of the pool shares. All other investments are reported at fair value. 5. Fixed Assets Fixed assets used in governmental fund type operations are accounted for in the general fixed assets account group, rather than in the governmental funds. General fixed assets purchased are initially reported as expenditures in the general and capital projects funds and are capitalized at historical cost or estimated cost if actual historical cost is not available in the general fixed assets account group, except for certain infrastructure assets which include streets, alleys, sidewalks, drainage and lighting systems which are immovable and of value only to the Village. Depreciation is not required and has not been provided on general fixed assets. Proprietary fund fixed assets currently consist of assets capitalized for the stormwater utility system project 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. Accumulated vacation and sick pay and compensatory time have been recorded as expenditures in the governmental funds when earned to the extent that such amounts will be paid from expendable available resources. The remaining portion has been reported as a liability 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. VILLAGE OF KEY BISCAYNE, FLORIDA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS (Continued) NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 9. Reserves and Designations Fund balances are reserved to indicate that a portion of fund equity is not available for appropriation or are 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. 10. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States 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 accounting principles generally accepted in the United States; 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 Deposits In addition to insurance provided by the Federal Depository Insurance Corporation, all deposits are held in banking institutions approved by the State Treasurer of the State of Florida to hold public funds. Under Florida Statutes Chapter 280, Florida Security for Public Deposits Act, the State Treasurer requires all Florida qualified public depositories to deposit with the Treasurer or another banking institution eligible collateral. In the event of a failure VILLAGE OF KEY BISCAYNE, FLORIDA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS (Continued) NOTE 2. DEPOSITS AND INVESTMENTS (Continued) Deposits (Continued) of a qualified public depository, the remaining public depositories would be responsible for covering any resulting losses. Accordingly, all amounts reported as deposits are insured or collateralized with securities held by the entity or its agent in the entity's name. Investments The Village is authorized to invest in obligations of the U.S. Treasury, its agencies, instrumentalities and the Local Government Surplus Trust Fund administered by the State Board of Administration. The investments follow the investment rules defined in Florida Statutes Chapter 215. The investment policy defined in the statutes attempts to promote, through state assistance, the maximization of net interest earnings on invested surplus funds of local units of governments while limiting the risk to which the funds are exposed. The Local Government Surplus Funds Trust Fund is governed by Ch. 19-7 of the Florida Administrative Code, which identifies the Rules of the State Board of Administration. These rules provide guidance and establish the general operating procedures for the administration of the Local Government Surplus Funds Trust Fund. Additionally, the Office of the Auditor General performs the operational audit of the activities and investments of the State Board of Administration. The Local Government Surplus Funds Trust is not a registrant with the Securities sand Exchange Commission (SEC); however, the Board has adopted operating procedures consistent with the requirements for a 2a-7 fund. At September 30, 2001, the Village's investment balances, which are carried at fair value, were classified as credit risk category 1; insured or registered, or securities held by the entity or its agent in the entity's name, were as follows: Category 1 Repurchase agreements $ 3,537,549 Bonds 481,082 Common stocks 726,160 4,744,791 Investments not subject to categorization: Mutual funds 304,801 State Board of Administration investment pool 16,759,322 $21,808,914 A reconciliation of cash and investments as shown on the combined balance sheet is as follows: Carrying amount of deposits Carrying amount of investments $ 4,743,652 21,808,914 $26,552,566 VILLAGE OF KEY BISCAYNE, FLORIDA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS (Continued) NOTE 2. DEPOSITS AND INVESTMENTS (Continued) Investments (Continued) Cash and cash equivalents Investments NOTE 3. PROPERTY TAXES $20,812,183 5,740,383 $26,552,566 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, 2001, there were no material delinquent taxes. NOTE 4. FIXED ASSETS The following is a summary of changes in general fixed assets: Land Buildings Improvements other than buildings Equipment Furniture and fixtures Construction in progress Total Balance September 30, Additions/ 2000 Transfers $16,571,873 730,717 3,949,753 2,970,492 134,219 794,015 $25,151,069 Deletions/ Transfers $ - $ 71,573 - 4,132,442 896,092 284,075 948,097 - 89,244 3,299,335 406,173 $7,787,425 $2,339,606 Balance September 30, 2001 $16,571,873 802,290 7,186,103 2,306,470 44,975 3,687,177 $30,598,888 Depreciation is not required and has not been provided on general fixed assets. VILLAGE OF KEY BISCAYNE, FLORIDA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS (Continued) NOTE 4. FIXED ASSETS (Continued) The following is a summary of proprietary fund type fixed assets: Balance Balance September 30, September 30, 2000 Additions Deletions 2001 Stormwater utility system Construction in progress Less accumulated depreciation NOTE 5. LONG-TERM DEBT $10,056,660 $ - $ - $10,056,660 373,249 - - 373,249 10,429,909 - - 10,429,909 813,377 273,919 - 1,087,296 $ 9,616,532 $273,919 $ - $ 9,342,613 The following is a summary of changes in general long-term debt account group: Balance Balance September 30, September 30, 2000 Additions Payments 2001 Revenue bonds payable $14,155,000 $10,000,000 $975,000 $23,180,000 Compensated absences payable 1,135,424 66,674 - 1,202,098 Rebatable arbitrage 97,165 82,797 - 179,962 $15387,589 $10,149,471 $975,000 $24,562,060 Revenue Bonds Land Acquisition Revenue Bonds During the fiscal year ended September 30, 1994, the Village issued $9,200,000 Land Acquisition Revenue Bonds, Series 1993, 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 $1,015,000 in fiscal year 2002 to $1,105,000 in fiscal year 2004. Interest accrues at 4.36% per annum. Debt service requirements to maturity are as follows: Principal Interest Total Fiscal year ending September 30: 2002 $1,015,000 $116,521 $1,131,521 2003 1,060,000 71,286 1,131,286 2004 1,105,000 24,089 1,129,089 $3,180,000 $211,896 $3,391,896 VILLAGE OF KEY BISCAYNE, FLORIDA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS (Continued) NOTE 5. LONG-TERM DEBT (Continued) Revenue Bonds (Continued) Land Acquisition and Capital Improvement Revenue Bonds During the fiscal year ended September 30, 1999, the Village issued $10,000,000 Land Acquisition and Capital Improvement Revenue Bonds, Series 1999, the proceeds of which were used for the acquisition of property and financing of the construction of the Civic Center project. The 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 year 2003 to $815,000 in fiscal year 2020. Interest accrues at 4.715% per annum. Debt service requirements to maturity are as follows: Principal Interest Total Fiscal year ending September 30: 2002 2003 2004 2005 2006 2007-2020 355,000 375,000 390,000 410,000 8,470,000 $10,000,000 $ 471,500 $ 471,500 463,131 818,131 445,921 820,921 427,886 817,886 409,026 819,026 3,114,650 11,584,650 $5,332,114 $15,332,114 During the fiscal year ended September 30, 2001, the Village issued a second series of $10,000,000 Land Acquisition and Capital Improvement Revenue Bonds, Series 2000, the proceeds of which were used for the acquisition of property and financing of the construction of the Civic Center project. The 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 $380,000 in fiscal year 2005 to $860,000 in fiscal year 2021. Interest accrues at 5.24% per annum. Debt service requirements to maturity are as follows: Fiscal year ending September 30: 2002 2003 2004 2005 2006 2007-2021 Principal Interest Total 380,000 400,000 9,220,000 $10 000,000 $ 831,122 $ 831,122 524,000 524,000 524,000 524,000 514,044 894,044 496,608 896,608 4,077,650 13,297,650 $6,967,424 $16 967424 VILLAGE OF KEY BISCAYNE, FLORIDA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS (Continued) NOTE 5. LONG-TERM DEBT (Continued) Revenue Bonds (Continued) Stormwater Utility Revenue Bonds During the fiscal year ended September 30, 1999, the Village issued $7,200,000 Stormwater Utility Revenue Bonds, Series 1999, the proceeds of which were used to pay the principal of the $7,200,000 Bond Anticipation Notes, Series 1995. The 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 on October 1S`, ranging from $130,000 in fiscal year 2002 to $595,000 in fiscal year 2020. Interest accrues at 4.13% per annum. Debt service requirements to maturity are as follows: Principal Interest Total Fiscal year ending September 30: 2002 $ 130,000 $ 286,622 $ 416,622 2003 185,000 281,253 466,253 2004 195,000 273,613 468,613 2005 205,000 265,558 470,558 2006 215,000 257,093 472,093 2007-2020 6,010,000 2,108,984 8,118,984 $6,940,000 $3 473,123 $10,413,123 Revolving Loan In June 1996, the Village entered into a loan agreement in the amount of $887,983 for the financing of the planning and engineering of the proposed sanitary sewer construction project under a State Revolving Fund Loan. The proceeds were received in fiscal year 1998. The loan is payable in semi-annual payments over 20 years beginning on the earlier of the commencement of the construction project or February 15, 2003 at an interest rate of 2.56% per annum. Therefore, annual debt service payments have not yet been determined. In November 1999, the Village was awarded an additional $6,798,000 under the State Revolving Fund Loan which has not yet been disbursed to the Village. NOTE 6. COMMITMENTS, CONTINGENCIES AND SUBSEQUENT EVENTS Construction Commitments The Village issued land acquisition and capital improvement revenue bonds totaling $20,000,000 in fiscal years 1999 and 2000 for the acquisition of the property and construction of the Village Civic Center. In the prior year, the Civic Center project incurred expenditures for the acquisition of land of approximately $3,300,000. For fiscal year ended September 30, 2001, approximately $3,400,000 was expended on the Civic Center and various other construction projects for street repairs and maintenance and Village beautification. The remaining $13,300,00 in bond proceeds will be expended on the construction of the Civic Center and related projects. VILLAGE OF KEY BISCAYNE, FLORIDA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS (Continued) NOTE 6. COMMITMENTS, CONTINGENCIES AND SUBSEQUENT EVENTS (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. Subsequent Event On October 31, 2001, the Village purchased the SunTrust Bank building for approximately $3,500,000. Previously, the Village occupied this building as a tenant. The building was purchased from the 2000 Series Land Acquisition and Capital Improvement Revenue Bonds proceeds (see Note 5). The Village is currently in the process of finalizing plans to demolish the building and to construct a community center on a portion of the land. NOTE 7. RESERVED/DESIGNATED FUND BALANCES As of September 30, 2001, fund balances in the governmental funds have been reserved or designated for the following purposes: Reserved Fund Balances General fund: Special disaster relief $ 135,000 Law enforcement 519,389 Compensated absences 503,617 Emergencies 2,000,000 $ 3,158,006 VILLAGE OF KEY BISCAYNE, FLORIDA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS (Continued) NOTE 7. RESERVED/DESIGNATED FUND BALANCES (Continued) Reserved Fund Balances (Continued) Capital project funds: Prepaid expenses Beach improvements Beach park and walk Capital improvements Pension Trust Fund: Employees pension benefits Designated Fund Balances General fund: Inspector fees Capital project funds: Police/fire equipment and building Holiday colony lighting Capital projects Athletic fields Sidewalk improvements NOTE 8. SEGMENT INFORMATION FOR ENTERPRISE FUNDS $ 152,696 99,860 672,738 17,881,658 $18, 806,952 $ 1,527,148 275,000 $ 40,000 100,000 271,462 185,000 74,000 $ 670,462 The City maintains three enterprise funds the purpose of which is to account for stormwater, solid waste and sanitary sewer construction services. Selected financial data for the individual funds are presented below: Operating revenues Depreciation Operating income (loss) Interest expense Net income (loss) Net working capital Total assets Bonds payable/loans payable Total equity Stormwater Utility $ 518,961 273,919 165,334 286,749 (51,285) 1,139,357 10,363,021 6,940,000 3,350,122 Sanitary Solid Waste Sewer Utility Construction $291,701 $ - 27,521 (5,692) 30,814 10,737 131,662 332,255 131,662 913,687 131,662 25,704 Total $ 810,662 273,919 187,163 286,749 (9,734) 1,603,274 11,379,165 6,940,000 3,507,488 VILLAGE OF KEY BISCAYNE, FLORIDA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS (Continued) NOTE 9. 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 12% and the employees contribute 6%. Under the second plan, which is available only to sworn or certified police officers and firefighters, the Village contributes 12% and there is no employee contribution. Beginning October 1, 1997, the police officers and firefighters, which elected to participate in the defined benefit pension plan (see Note 10), were no longer eligible to contribute to the 401(a) plan. Employer contributions for the fiscal year ended September 30, 2001 were approximately $550,000 while the employee contributions were approximately $91,000. Amendments to the Plan must be authorized by the Village Council. NOTE 10. DEFINED BENEFIT PENSION PLAN Plan Description Effective October 1, 1997, the Village established a single -employer Public Employee Retirement System (PERS) to provide pension benefits for its police officers and firefighters. The PERS is considered to be part of the Village's financial reporting entity and is included in the Village's financial reports as a pension trust fund. The Plan was created under Village Ordinance 97-21. The latest available actuarial valuation is as of October 1, 2000. The PERS does not issue a separate audited financial report for the Plan. Under this plan, all full-time police officers and firefighters employed by the Village are eligible to participate. The monthly retirement benefit is equal to 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. During 2001, the Plan was amended to include disability benefits for retirees. Amendments to the Plan must be authorized by the Village Council. Members are vested after 5 years of service. Vested employees may retire at the earlier of age 55 and the completion of five years of credited service or the age of 52 and the completion of 25 years of credited service. Administrative costs of the plan are financed through investment earnings. At October 1, 2000 (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 4 Current employees: Vested 41 Non -vested 15 Total 56 VILLAGE OF KEY BISCAYNE, FLORIDA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS (Continued) NOTE 10. DEFINED BENEFIT PENSION PLAN (Continued) Funding Policy From the effective date of the Plan, October 1, 1997 through September 30, 2000, the contribution rate 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 contribution rate for the year ended September 20, 2001 was 14%. The minimum member contribution rate is 8%. This funding policy is designed to limit the Village's exposure to contribute to the Plan. Annual Pension Cost and Net Pension Obligation The annual pension cost and net pension obligation as of October 1, 2000 was as follows: Annual required contribution $ 45,199 Interest on net pension obligation (5,216) Adjustment to annual required contribution 6,951 Annual pension cost 46,934 Contributions made 99,322 Increase in net pension obligation (52,388) Net pension obligation, beginning of year (57,951) Net pension obligation, end of year $(110,339) The annual required contribution for the current year was determined as part of the October 1, 2000 actuarial valuation using the aggregate actuarial cost method. This method does not identify and separately amortize unfunded actuarial liabilities. When a plan uses the aggregate actuarial cost method, a schedule of funding progress is not required to be presented. The actuarial assumptions included (a) 9% investment rate of return (net of investment related 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 Obligation 9/30/99 $ 2,613 100% + $ (62,436) 9/30/00 4,485 0% + (57,951) 9/30/01 46,934 100% + (110,339) 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%+ 2000 2,636 110,700 100%+ 2001 45,199 230,370 100%+ The information presented in the required supplemental schedule was determined as part of the actuarial valuation at the date indicated. Additional information as of the latest actuarial valuation follows. Since the Plan uses the aggregate actuarial cost method, a schedule of funding progress is not required and has not been provided. Valuation date 10/1/00 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% . :tAtifjt •: cfr 1.1is11111111 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, 2001 (WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 2000) ASSETS Cash and cash equivalents Investments Due from other funds Property taxes receivable Accounts receivable Total assets LIABILITIES AND FUND BALANCES Liabilities: Accounts payable and accrued liabilities Compensated absences Deposits and performance bonds Due to other funds Total liabilities Fund balances: Reserved for: Special disaster relief Recreation facilities Law enforcement Community center Beach park and walk Compensated absences Subsequent year's budget Emergencies Unreserved: Designated for: Inspector fees Police/fire equipment and building 2001 2000 $ 4,025,611 $ 3,208,836 1,098,385 884,890 83,978 13,982 19,241 533,359 385,899 $ 5,671,337 $ 4,582,844 $ 673,821 $ 366,563 61,281 1,410 46,454 1,501,819 2,238,331 413,017 135,000 100,000 99,860 519,389 344,512 30,100 - 572,738 503,617 503,617 - 204,000 2,000,000 2,000,000 3,158,006 3,854,827 275,000 275,000 - 40,000 275,000 315,000 Total fund balances Total liabilities and fund balances 3,433,006 4,169,827 $ 5,671,337 $ 4,582,844 VILLAGE OF KEY BISCAYNE, FLORIDA GENERAL FUND SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL FISCAL YEAR ENDED SEPTEMBER 30, 2001 Budgetary Variance Basis Favorable Budget Actual (Unfavorable) Revenues: Property taxes $ 8,556,788 $ 8,738,608 $ 181,820 Utility taxes 1,855,000 1,772,208 (82,792) Franchise fees 740,000 783,513 43,513 Intergovernmental: State shared revenue 900,000 930,169 30,169 Licenses and permits: Occupational licenses 38,687 33,212 (5,475) Building permits 900,000 1,275,017 375,017 938,687 1,308,229 369,542 Charges for services 103,020 440,136 337,116 Interest 250,000 291,408 41,408 Grants 50,250 278,345 228,095 Other 18,400 18,400 Total revenue $ 13,393,745 $ 14,561,016 $ 1,167,271 (Continued) OS, VILLAGE OF KEY BISCAYNE, FLORIDA GENERAL FUND SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL (Continued) FISCAL YEAR ENDED SEPTEMBER 30, 2001 Expenditures: General government: Elected officials Administration Village attorney Total general government Public works Building, planning and zoning Parks and recreation Public safety Non -departmental Debt service: Principal Interest Budgetary Basis Budget Actual $ 251,396 $ 610,161 213,000 Variance Favorable (Unfavorable) 54,377 $ 765,707 372,961 197,019 (155,546) (159,961) 1,074,557 1,193,045 (118,488) 757,589 835,866 1,286,950 1,237,837 527,812 473,255 6,377,222 6,385,772 752,860 638,027 975,000 975,000 631,403 631,875 1,606,403 1,606,875 (78,277) 49,113 54,557 (8,550) 114,833 (472) (472) Total expenditures $ 12,383,393 $ 12,370,677 $ 12,716 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 Fund - The capital improvement fund accounts for the acquisition or construction of various major capital projects. • Civic Center Fund - 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, 2001 (WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 2000) ASSETS Cash and cash equivalents Investments Due from other funds Receivables Prepaid expenses Total assets LIABILITIES AND FUND BALANCES Liabilities: Accounts payable and accrued liabilities Retainage payable Due to other funds Total liabilities Fund balance: Reserved for: Prepaid expenses Beach improvements Beach park and walk Community center Capital improvements Unreserved: Designated for: Police/fire equipment and building Holiday colony lighting Capital projects Athletic fields Sidewalk improvements Total fund balances Total liabilities and fund balances Capital Improvement $ 1,046,320 2,197,725 1,471,719 70,820 152,696 Civic Center Totals 2001 2000 $ 15,024,222 $ 16,070,542 $ 1,750,315 2,197,725 8,324,145 30,100 1,501,819 70,820 370,768 152,696 $ 4,939,280 $ 15,054,322 $ 19,993,602 $ 10,445,228 $ 35,971 $ 340,973 $ 376,944 $ 195,515 35,000 104,244 13 9, 244 70,971 152,696 99,860 672,738 3,272,553 4,197,847 40,000 100,000 271,462 185,000 74,000 670,462 445,217 30,100 14,579,005 14,609,105 4,868,309 14,609,105 $ 4,939,280 $ 15,054,322 50,490 516,188 246,005 152,696 99,860 672,738 30,100 17,851,558 10,199,223 18,806,952 10,199,223 40,000 100,000 271,462 185,000 74,000 670,462 19,477,414 10,199,223 $ 19,993,602 $ 10,445,228 VILLAGE OF KEY BISCAYNE, FLORIDA CAPITAL PROJECTS FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES FISCAL YEAR ENDED SEPTEMBER 30, 2001 (WITH COMPARATIVE TOTALS FOR FISCAL YEAR ENDED SEPTEMBER 30, 2000) Capital Civic Totals Improvement Center 2001 2QQQ Revenues: Interest $ 189,035 $ 862,530 $ 1,051,565 $ 849,962 Grants 433,652 100,000 533,652 - Total revenues 622,687 962,530 1,585,217 849,962 Expenditures: Capital outlay Total expenditures 1,627,608 3,402,578 5,030,186 4,899,093 1,627,608 3,402,578 5,030,186 4,899,093 Deficiency of revenues over expenditures (1,004,921) (2,440,048) (3,444,969) (4,049,131) 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 Residual equity transfers Fund balances, ending 1,250,000 1,250,000 10,000,000 10,000,000 1,000,000 1,250,000 10,000,000 11,250,000 1,000,000 245,079 7,559,952 7,805,031 (3,049,131) 3,180,170 7,019,053 10,199,223 13,248,354 1,443,060 30,100 1,473,160 - $ 4,868,309 $ 14,609,105 $ 19,477,414 $ 10,199,223 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 Fund - The stormwater utility system accounts for the construction and maintenance of the stormwater system. • Solid Waste Fund - The solid waste fund provides collection service for trash removal. Solid waste expenses are primarily for curbside collections. • Sanitary Sewer Construction Fund - 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, 2001 (WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 2000) Stormwater Sanitary Utility Solid Sewer Totals System Waste Construction 2001 2000 ASSETS Current assets: Cash and cash equivalents $ 308,685 $ 75,090 $ 332,255 $ 716,030 $ 1,435,420 Investments 932,230 - 932,230 Accounts receivable, net 101,341 56,572 157,913 122,747 Total current assets 1,342,256 131,662 332,255 1,806,173 1,558,167 Fixed assets, net 8,969,364 - 373,249 9,342,613 9,616,532 Capitalized loan fees and interest 51,401 - 208,183 259,584 186,018 Total assets $ 10,363,021 $ 131,662 $ 913,687 $ 11,408,370 $ 11,360,717 LIABILITIES AND FUND EQUITY Current liabilities: Accounts payable and accrued liabilities Due to other funds Current portion of revenue bonds payable Total current liabilities Long-term debt: Revolving loan Revenue bonds payable Total liabilities $ 72,899 $ 130,000 202,899 6,810,000 - $ 72,899 $ 4,189 33,488 130,000 202,899 37,677 887,983 887,983 865,818 - 6,810,000 6,940,000 7,012,899 887,983 7,900,882 7,843,495 Fund equity: Contributed capital 2,682,901 2,682,901 2,682,901 Retained earnings 667,221 131,662 25,704 824,587 834,321 Total fund equity 3,350,122 131,662 25,704 3,507,488 3,517,222 Total liabilities and fund equity $ 10,363,021 $ 131,662 $ 913,687 $ 11,408,370 $ 11,360,717 -30- VILLAGE OF KEY BISCAYNE, FLORIDA ENTERPRISE FUNDS COMBINING STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS FISCAL YEAR ENDED SEPTEMBER 30, 2001 (WITH COMPARATIVE TOTALS FOR FISCAL YEAR ENDED SEPTEMBER 30, 2000) Stormwater Sanitary Utility Solid Sewer Totals System Waste Construction 2001 MO Operating revenue $ 518,961 $ 291,701 $ - $ 810,662 $ 781,477 Operating expenses: General and administrative costs 79,708 264,180 5,692 349,580 345,595 Depreciation 273,919 273,919 273,919 Total operating expenses 353,627 264,180 5,692 623,499 619,514 Operating income (loss) Non -operating revenues (expense): Interest income Interest expense Total non -operating revenues (expenses) Net income (loss) Retained earnings, beginning Retained earnings, ending 165,334 27,521 (5,692) 187,163 161,963 70,130 3,293 16,429 89,852 84,194 (286,749) - (286,749) (292,798) (216,619) 3,293 16,429 (196,897) (208,604) (51,285) 30,814 10,737 (9,734) (46,641) 718,506 100,848 14,967 834,321 880,962 $ 667,221 $ 131,662 $ 25,704 $ 824,587 $ 834,321 VILLAGE OF KEY BISCAYNE, FLORIDA ENTERPRISE FUNDS COMBINING STATEMENTS OF CASH FLOWS FISCAL YEAR ENDED SEPTEMBER 30, 2001 (WITH COMPARATIVE TOTALS FOR FISCAL YEAR ENDED SEPTEMBER 30, 2000) Stormwater Sanitary Utility Solid Sewer Totals System Waste Construction 201 ZQQQ Cash flows from operating activities: Operating income (loss) $ 165,334 $ 27,521 $ (5,692) $ 187,163 $ 161,963 Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities: Depreciation 273,919 273,919 273,919 Change in operating assets and liabilities. Increase in. Accounts receivable (3,066) (33,225) (36,291) (10,097) interest receivable (50,276) (22,165) (72,441) (142,056) increase (decrease) in Accounts payable 71,294 (2,279) (305) 68,710 (77,991) Retamage payable - - (11,750) Due to other funds - (33,488) - (33,488) 33,488 Total adjustments 291,871 (68,992) (22,470) 200,409 65,513 Net cash provided (used) by operating activities 457,205 (41,471) (28,162) 387,572 227,476 Cash flows from capital and relating financing activities: Net proceeds from revolving loan 22,165 22,165 142,056 Payments for construction in progress - (20,000) Principal payment for revenue bonds - (260,000) Interest paid (286,749) (286,749) (292,798) Net cash provided (used) by capital and related financing activities (286,749) 22,165 (264,584) (430,742) Cash flows from investing activities. Purchase of investments Interest received Net cash provided (used by) investing activities Net increase (decrease) in cash and cash equivalents Cash and cash equivalents, beginning Cash and cash equivalents, ending (932,230) 70,130 (862,100) (932,230) 3,293 16,429 89,852 84,194 3,293 16,429 (842,378) 84,194 (691,644) (38,178) 10,432 (719,390) (119,072) 1,000,329 113,268 321,823 1,435,420 1,554,492 $ 308,685 $ 75,090 $ 332,255 $ 716,030 $ 1,435,420 -32- 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, 2001 (WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 2000) 2001 General fixed assets: Land Buildings Improvements other than buildings Equipment Furniture and fixtures Construction in progress Total general fixed assets Investment in general fixed assets by source: General fund Capital project funds Donations $ 16,571,873 802,290 7,186,103 2,306,470 44,975 3,687,177 $ 16,571,873 730,717 3,949,753 2,970,492 134,219 794,015 $ 30,598,888 $ 25,151,069 $ 14,249,454 $ 13,733,888 12,349,434 7,417,181 4,000,000 4,000,000 Total investment in general fixed assets $ 30,598,888 $ 25,151,069 VILLAGE OF KEY BISCAYNE, FLORIDA SCHEDULE OF GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY SEPTEMBER 30, 2001 Improvements Furniture Construction Other Than and in Land Building Buildings Equipment Fixtures Progress Total General government $ 4,000,000 $ 31,149 $ 5,924,357 $ 163,990 $ 23,500 $ 3,687,177 $ 13,830,173 Parks and recreation 9,240,658 143,641 1,261,746 193,622 3,325 10,842,992 Public safety 3,331,215 627,500 1,948,858 18,150 5,925,723 $ 16,571,873 $ 802,290 $ 7,186,103 $ 2,306,470 $ 44,975 $ 3,687,177 $ 30,598,888 VILLAGE OF KEY BISCAYNE, FLORIDA SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY FISCAL YEAR ENDED SEPTEMBER 30, 2001 General government Parks and recreation Public safety Balance September 30, 2000 $ 7,847,539 10,814,774 6,488,756 Additions/ Transfers $ 6,623,087 955,029 209,309 Deletions $ 640,453 926,811 772,342 Balance September 30, 2001 $ 13,830,173 10,842,992 5,925,723 $ 25,151,069 $ 7,787,425 $ 2,339,606 $ 30,598,888 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, 2001 (WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 2000) 2001 2000 Amount to be provided for retirement of general long-term debt $ 24,562,060 $ 15,387,589 General long-term debt payable: Rebatable arbitrage Compensated absences payable Revenue bonds payable $ 179,962 $ 97,165 1,202,098 1,135,424 23,180,000 14,155,000 Total general long-term debt payable $ 24,562,060 $ 15,387,589 STATISTICAL SECTION VILLAGE OF KEY BISCAYNE, FLORIDA GENERAL GOVERNMENTAL EXPENDITURES BY FUNCTION LAST TEN FISCAL YEARS 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 2000 4,795,894 (2) 6,068,147 380,502 830,360 12,074,903 2001 5,015,845 (2) 6,172,932 452,804 933,096 12,574,677 Note: Includes general fund only (GAAP basis). (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. VILLAGE OF KEY BISCAYNE, FLORIDA GENERAL GOVERNMENTAL REVENUES BY SOURCE LAST TEN FISCAL YEARS Licenses Fiscal Property and Inter- Utility Franchise Year Taxes Permits Governmental Taxes Etta 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 - 6,820,807 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 2000 7,799,633 1,316,641 889,704 1,723,902 729,998 348,552 315,959 13,124,389 2001 8,738,608 1,308,229 930,169 1,772,208 783,513 736,881 291,408 14,561,016 Note: Includes general fund only (GAAP basis). (1) Includes charges for services, grants and other. VILLAGE OF KEY BISCAYNE, FLORIDA UTILITY TAX REVENUE BY SOURCE LAST TEN FISCAL YEARS Fiscal Telecom- Fuel Year Electricity munications Gas Qil 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 2000 1,000,553 454,101 52,016 2,169 215,063 1,723,902 2001 1,018,973 492,442 62,833 245 197,715 1,772,208 FRANCHISE FEE REVENUE BY SOURCE LAST TEN FISCAL YEARS 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 2000 646,000 59,548 24,450 729,998 2001 678,316 67,855 37,342 783,513 VILLAGE OF KEY BISCAYNE, FLORIDA PROPERTY TAX LEVIES AND COLLECTIONS LAST TEN FISCAL YEARS Tax Fiscal Assessed Tax Total Percent Year(') Year Value Levy Collected(2) Collected 1992 1993 $ 1,617,141,088 $ 3,687,082 $ 3,536,480 95.9% 1993 1994 1,560,057,130 6,925,094 6,640,045 95.9 1994 1995 1,741,921,584 7,143,620 6,820,807 95.5 1995 1996 1,767,457,005 6,716,337 6,418,864 95.6 1996 1997 1,861,243,132 6,711,642 6,495,465 96.8 1997 1998 2,003,049,232 7,222,995 6,948,521 96.2 1998 1999 2,028,174,208 7,313,596 7,012,714 95.9 1999 2000 2,232,457,904 8,050,243 7,799,633 96.9 2000 2001 2,499,049,161 9,011,571 8,738,608 96.7 (1) Assessments as of January 1 of the year listed; bills mailed in October of that year; taxes become delinquent at the end of April of the subsequent year. Initial property tax levy by the Village October, 1992. (2) Collections reflect timely payment discounts of up to 4% and other adjustments. VILLAGE OF KEY BISCAYNE, FLORIDA ASSESSED AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY LAST TEN FISCAL YEARS 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 2,205,371,189 27,086,715 2,232,457,904 2000 2,470,115,075 28,934,086 2,499,049,161 2001 2,701,084,167 30,749,478 2,731,833,645 Source: Miami -Dade County Property Appraiser's Office Note: Assessed values equal the estimated actual value. VILLAGE OF KEY BISCAYNE, FLORIDA PROPERTY TAX RATES DIRECT AND OVERLAPPING GOVERNMENTS LAST TEN FISCAL YEARS 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 2000 3.606 5.751 0.652 6.403 0.597 0.041 0.638 8.702 0.915 9.617 0.451 20.715 2001 3.606 5.713 0.552 6.265 0.697 0.039 0.736 8.528 0.848 9.376 0.451 20.434 (1) Village established its own fire district effective October 1, 1993 Source: Miami -Dade County Property Appraiser's Office -42- VILLAGE OF KEY BISCAYNE, FLORIDA RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR NET BONDED DEBT TO GENERAL GOVERNMENTAL EXPENDITURES LAST TEN FISCAL YEARS Ratio of Debt Total Service to Total General General Fiscal Debt Governmental Governmental Year Principal Interest (11 Service (21 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 8,746,746 13.0 1997 820,000 315,901 1,135,901 9,494,861 12.0 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 2000 935,000 595,767 1,530,767 12,074,903 12.7 2001 975,000 631,875 1,606,875 12,574,677 12.8 Note: Includes general fund only. No debt prior to 1994. (1) Excludes bond issuance and other costs (2) Debt service on revenue bonds VILLAGE OF KEY BISCAYNE, FLORIDA SCHEDULE OF DIRECT AND OVERLAPPING BONDED DEBT GENERAL OBLIGATION BONDS (IN THOUSANDS) SEPTEMBER 30, 2001 Jurisdiction Net General Percentage Amount Obligation Applicable Applicable Taxable Bonded to to Property Debt Key Key Value (1) Outstanding Biscayne Biscayne Direct: Village of Key Biscayne $ 2,731,834 $ 30,120 100.00% $ 30,120 Overlapping: Miami -Dade County 105,398,523 264,763 (2) 2.59% (3) 6,857 Miami -Dade County Schools 106,269,507 856,955 (2) 2.57% (3) 22,023 $ 1,121,718 $ 28,880 (1) Source: Miami -Dade County Property Appraiser's Office - Taxable Property Value reflects January 1, 2001 amounts. (2) Source: Miami -Dade County Finance Department - Net General Obligation Bonded Debt outstanding figures are as of September 30, 2001. (3) Based on the percentage of the County's and School Board's tax roll valuation comprised of real and personal property situated in the Village of Key Biscayne. VILLAGE OF KEY BISCAYNE, FLORIDA RATIO OF NET BONDED DEBT TO ASSESSED VALUE AND PER CAPITA LAST TEN FISCAL YEARS 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 9,689 (5) 2,028,174,208 22,290,000 1.1 2,300 2000 10,507 (6) 2,223,956,515 21,220,000 0.95 2,190 2001 10,607 (7) 2,499,049,161 30,120,000 1.2 2,823 Note: Village had no debt prior to 1994. (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 (6) Bureau of Census - 2000 Census Data (7) As of April 2001 - University of Florida Economic and Business Research VILLAGE OF KEY BISCAYNE, FLORIDA DEMOGRAPHICS STATISTICS POPULATION Estimates of Population by Age Year 2000 Under 20 Years 20 to 64 Years 65 Years or Older Number Percent Number Percent Number Percent Total 2,697 26 6,176 59 1,634 15 10,507 Estimates of Population by Race Anglo Black Hispanic Total 2000 5,228 48 5,231 10,507 INCOME* Per Capita Income Average Per Anglo Black Hispanic Capita 1990 $ 44,615 $ 24,577 $ 28,341 $ 37,629 UNEMPLOYMENT RATES** (Percent) 1994 1995 1996 1997 1998 1999 2000 2001 Miami -Dade County 7.9 6.8 7.8 7.1 6.7 5.9 5.6 5.7 Village of Key Biscayne 3.6 3.1 3.6 3.3 3.1 2.7 2.6 2.8 * Source: Bureau of Census, Income Division, 2000 Census Not Available Until April June 2002. ** Source: State Department of Labor -46- VILLAGE OF KEY BISCAYNE, FLORIDA PROPERTY VALUE, CONSTRUCTION AND BANK DEPOSITS LAST TEN FISCAL YEARS Residential Commercial (000s Omitted) Total Total County Village Fiscal Permits # of # of of Bank Bank Year Issued Permits Valuation Permits Valuation Construction Deposits (1) Deposits (2) 1992 35 25 $ 638,483 10 $ 401,058 $ 1,039,541 $ 20,282,998 $ 1993 1,737 1,633 26,822,424 104 4,383,673 31,206,097 18,146,647 1994 2,205 2,081 25,410,312 124 45,567,390 70,977,702 17,524,140 1995 2,857 2,568 33,820,503 289 2,099,661 35,920,164 17,938,762 1996 3,171 3,060 65,318,655 111 1,231,097 66,549,752 14,561,654 1997 3,570 3,402 82,481,700 168 667,328 83,149,028 34,664,829 1998 3,002 2,879 129,200,900 106 3,176,031 132,376,931 36,659,805 347,178 1999 2,711 2,416 94,287,095 295 56,792,994 151,080,089 39,633,149 377,060 2000 1,793 1,641 85,244,371 152 9,359,770 94,604,141 38,539,107 364,973 2001 749 667 59,607,528 82 10,485,477 70,093,005 45,064,000 328,602 (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. VILLAGE OF KEY BISCAYNE, FLORIDA PRINCIPAL TAXPAYERS SEPTEMBER 30, 2001 Taxpayer Ocean Club, Inc. Sonesta Beach Resort, LP GB Hotel Partners, Ltd. Grand Bay Tower Associates Key Biscayne Shopping Center Galleria of Key Biscayne Pitu, Inc. Red Dragon's Sands, Ltd. Finivest Investment Heidrun Eckes-Chantre Source: Miami -Dade County Appraiser's Office % of Total Taxable Assessed Valuation Va uation $ 39,359,096 1.57% 37,300,000 1.49% 23,341,830 0.93% 15,735,600 0.63% 8,672,526 0.35% 7,859,001 0.31% 5,922,735 0.24% 5,655,110 0.23% 4,430,881 0.18% 3,569,350 0.14% $ 151,846,129 6.07% VILLAGE OF KEY BISCAYNE, FLORIDA MISCELLANEOUS STATISTICAL DATA SEPTEMBER 30, 2001 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 1,051 Number of Teachers 67 Miami -Dade County Water & Sewer Authority Number of Customers Average Daily Consumption 1,941 650,000 gallons Sewers: Number of Customers 998 Fire Hydrants 243 Building Permits Issued 1,955 Recreation and Culture: Number of Parks Number of Libraries Number of Tennis Centers Number of Recreational Centers Employees: Full Time 3 1 (Operated by Miami -Dade County) 1 1 91 COMPLIANCE SECTION RCH Rachlin Cohen & Holtz ALP 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, 2001 and for the year then ended, and have issued our report dated November 29, 2001. We conducted our audit in accordance with auditing standards generally accepted in the United States 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 general purpose 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 general purpose 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. -50- One Southeast Third A\ enue, Tenth Floor, Miami, Florida 33131 • Tel 305-377-4228 • Fa\ 305-377-8331 Offices in Miami • Ft Lauderdale • West Palm Beach • Stuart as tie ae rchcpa com p1embei of 5unmut International Inc is ith ottia,, in prmupal ones thioughout the „oi Id RCH Honorable Mayor, Village Council and Village Manager Village of Key Biscayne, Florida Page Two However, we noted other matters that we have reported to management in the schedule of findings accompanying this report. This report is intended solely for the information and use of the Mayor, Village Council, management and regulatory agencies, 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. Acii44(. Miami, Florida November 29, 2001 r -51- RCH Rachhn Cohen & Holtz LLP Certified Public Accountants & Consultant,. 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, 2001, and have issued our report thereon dated November 29, 2001. We conducted our audit in accordance with auditing standards generally accepted in the United States and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, and with Chapter 10.550, Rules of the Auditor General. We have issued our report of Independent Certified Public Accountants on Compliance and on Internal Control over Financial Reporting and our Report of Independent Certified Public Accountants on Compliance and on Internal Control over Compliance Applicable to Each Major State Project and Schedule of Findings and Questioned Costs. Disclosures in those reports, which are dated November 29, 2001, should be considered in conjunction with this management letter. In connection with our audit of general purpose financial statements of the Village for the year ended September 30, 2001, 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)(g): 1. No inaccuracies, shortages, defalcations, fraud and/or violations of laws, rules, regulations and contractual provisions were reported in the preceding annual financial audit. 2. Recommendations made in the preceding annual financial audit have been implemented. 3. The Village, during fiscal year 2001, was not in a state of financial emergency as defined by Florida Statutes 218.503(1). The Village has no deficit fund balances for two consecutive years. 4. Recommendations to improve the Village's present financial management and accounting procedures are accompanying this report in the schedule of findings and questioned costs. 5. The Village was in compliance with Section 218.415, Florida Statutes, regarding the investment of public funds. 6. 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 and contractual provisions. -52- One Southeast Third Av enue, Tenth Floor, Miami, Florida 33131 • Tel 305-377-4228 • Fav X05-377-8331 Offices in Miami • Ft Lauderdale • West Palm Beach • Stuait vv w tchcpa corn Vmb,i ,,t tid[PH t Intelndt[Jnal In, o 1th othkr. m prinkipJI thiouchoutth� ��rnld RCH Honorable Mayor, Village Council and Village Manager Village of Key Biscayne, Florida Page Two b. Made any illegal or improper expenditures. c. Had improper or inadequate accounting procedures, other than those noted in the schedule of findings and questioned costs accompany this report. d. Failed to record financial transactions. e. Had other inaccuracies, shortages, defalcations or instances of fraud. 7. The annual financial report for the year ended September 30, 2001 has been filed with the Department of Banking and Finance pursuant to Section 218.32(1)(a), Florida Statutes and is in agreement with the annual audited financial audit report for the fiscal year ended September 30, 2001. 8. The Village was incorporated by Laws of Florida 90-142. There were no component units related to the Village. 9. During the course of our audit, we applied financial condition assessment procedures pursuant to Rule 10.566(8). It is management's responsibility to monitor the Village's financial condition, and our financial condition assessment, which was performed as of the Village's fiscal year end, was based on representations made by management and the review of financial information provided by the Village. There were no findings that identified deteriorating financial conditions. 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. ,. + 7derCfy GGr° Miami, Florida November 29, 2001 -53- Rachhn Cohen & Holtz l.l.P Certified Public Accountants & Consultants Report of Independent Certified Public Accountants on Compliance and Internal Control Over Compliance Applicable to Each Major State Financial Assistance Project Honorable Mayor, Village Council and Village Manager Village of Key Biscayne, Florida We have audited the compliance of the Village of Key Biscayne, Florida (the Village) with the types of compliance requirements described in the Executive Office of the Governor's State Projects Compliance Supplement, that are applicable to each of its major state financial assistance projects for the year ended September 30, 2001. The Village's major state financial assistance projects are identified in the summary of auditors' results section of the accompanying schedule of findings and questioned costs. Compliance with the requirements of laws, regulations, contracts, and grants applicable to each of its major state financial assistance projects is the responsibility of the Village's management. Our responsibility is to express an opinion on the Village's compliance based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and Chapter 10.550, Rules of the Auditor General. Those standards, and Chapter 10.550, Rules of the Auditor General, required that we plan and perform the audit to obtain reasonable assurance about whether non-compliance with the types of compliance requirements referred to above that could have a direct and material effect on a major state financial assistance project occurred. An audit includes examining, on a test basis, evidence about the Village's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on the Village's compliance with those requirements. In our opinion, the Village complied, in all material respects, with the requirements referred to above that are applicable to each of its major state financial assistance projects for the year ended September 30, 2001. Internal Control Over Compliance The management of the Village is responsible for establishing and maintaining effective internal control over compliance with requirements of laws, regulations, contracts, and grants applicable to state financial assistance projects. In planning and performing our audit, we considered the Village's internal control over compliance with requirements that could have a direct and material effect on a major state financial assistance project to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with Chapter 10.550, Rules of the Auditor General. -54- One Southeast Third Asenue, Tenth Floor, Ahams, Florida 33131 • Tel 305-377-4228 • Fa\ 305-377-8331 Offices m Miami • Ft Lauderdale • West Palm Beach • Stuart vv ichcpa corn \lemhei of ',min it lflte1nanon,l \ ', iat,' In, rriti ,, ti,,• r F'nnup I ,die, throuahnul t'r, v, or Id Honorable Mayor, Village Council and Village Manager Village of Key Biscayne, Florida Page Two Our consideration of the internal control over compliance would not necessarily disclose all matters in the internal control 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 non-compliance with applicable requirements of laws, regulations, contracts, and grants that would be material in relation to a major state financial assistance program 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 compliance and its operation that we consider to be material weaknesses. This report is intended solely for the information and use of the Mayor, Village Council, management, Auditor General of the State of Florida and applicable state grantor agencies 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. gte--1-&4-- eat4A- e 77/0e-i Miami, Florida November 29, 2001 -55- VILLAGE OF KEY BISCAYNE, FLORIDA SCHEDULE OF EXPENDITURES OF STATE FINANCIAL ASSISTANCE FISCAL YEAR ENDED SEPTEMBER 30, 2001 State Agency and Program Title Florida Department of Environmental Protection Direct Programs: Florida Beach Erosion Control Florida Recreation Development Assistance Division of Recreation and Parks Department of Community Affairs Direct Programs: Local Government Comprehensive Planning Assistance and Review Emergency Management Preparedness and Assistance Grant State CFSA No. 37.003 37.017 37.047 State Contract Grant No. 99DA1 F8054 M9812 52.005 01 -DR -14-11-23-02-008 Expenditures $ 193,652 100,000 100,000 393,652 40,000 52.009 02-CP-04-11-23-02-216 49,974 89,974 $ 483,626 -56- VILLAGE OF KEY BISCAYNE, FLORIDA NOTE TO THE SCHEDULE OF EXPENDITURES OF STATE FINANCIAL ASSISTANCE FISCAL YEAR ENDED SEPTEMBER 30, 2001 NOTE 1. BASIS OF PRESENTATION The accompanying schedule of expenditures of state financial assistance awards includes the state grant activity of the Village of Key Biscayne and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Chapter 10.550, Rules of the Auditor General. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the general purpose financial statements. 67 VILLAGE OF KEY BISCAYNE, FLORIDA SCHEDULE OF FINDINGS AND QUESTIONED COSTS FISCAL YEAR ENDED SEPTEMBER 30, 2001 SECTION I - SUMMARY OF AUDITOR'S RESULTS Financial Statements Type of auditor's report issued: Unqualified Opinion Internal control over financial reporting: Material weakness(es) identified? yes X no Reportable condition(s) identified not considered to be material weakness? yes X none Non-compliance material to financial statements noted? yes X no State Financial Assistance Projects Internal control over major programs: Material weakness(es) identified? Reportable condition(s) identified not considered to be material weakness? yes X no yes X none Type of auditor's report issued on compliance for major programs: Unqualified Opinion Any audit findings disclosed that are required to be reported in accordance with Section 215.97(7)(f), Florida Statutes? yes X No Identification of major programs: CSFA Numbers Name of State Program 37.003 Florida Beach Erosion Control 37.047 Division of Recreation and Parks Dollar threshold used to distinguish between Type A and Type B programs: $300,000 -58- VILLAGE OF KEY BISCAYNE, FLORIDA SCHEDULE OF FINDINGS AND QUESTIONED COSTS FISCAL YEAR ENDED SEPTEMBER 30, 2001 SECTION II - CURRENT YEAR COMMENTS AND RECOMMENDATIONS 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, 2003. However, many of the reporting requirements need to be addressed several years before the required implementation date. Recommendation We recommend that the Village review the new requirements and create an action plan for implementation. Management's Response The Village is currently reviewing the requirements and initiating a plan. SECTION III - STATE AWARD FINDINGS AND QUESTIONED COSTS None. s' 4 CO 1` • Cu e ee� I O tlz 195 'l(_T11r r> 41 tit to - �f v LT --1JF in "J a 2 1L 1 l J CI `1 FL 8261PAL METI O EXWY t t5 >, COcts a) > ca N 1� `e cV d i FLO Vii. 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.