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.