HomeMy Public PortalAboutCAFR 2002.pdfVILLAGE OF KEY BISCAYNE, FLORIDA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FISCAL YEAR ENDED SEPTEMBER 30, 2002
Prepared by:
THE FINANCE DEPARTMENT
VILLAGE OF KEY BISCAYNE, FLORIDA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FISCAL YEAR ENDED SEPTEMBER 30, 2002
TABLE OF CONTENTS
PAGE
1.
H.
INTRODUCTORY SECTION
Letter of Transmittal
Village Officials
Certificate of Achievement for Excellence in Financial Reporting
Village Organizational Chart
FINANCIAL SECTION
i
xii
xiii
AV
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 26
COMBINING, INDIVIDUAL FUND AND ACCOUNT GROUP STATEMENTS
AND SCHEDULES
GENERAL FUND:
Comparative Balance Sheets 27
Schedule of Revenues and Expenditures - Budget and Actual 28
CAPITAL PROJECTS FUNDS:
Combining Balance Sheets 30
Combining Statements of Revenues, Expenditures and Changes in Fund Balances 31
ENTERPRISE FUNDS:
Combining Balance Sheets 32
Combining Statements of Revenues, Expenses and Changes in Retained Earnings 33
Combining Statements of Cash Flows 34
VILLAGE OF KEY BISCAYNE, FLORIDA
TABLE OF CONTENTS
H. FINANCIAL SECTION
PAGE
ACCOUNT GROUPS:
GENERAL FDCED ASSETS ACCOUNT GROUP:
Schedule of General Fixed Assets By Source 35
Schedule of General Fixed Assets By Function and Activity 36
Schedule of Changes in General Fixed Assets By Function and Activity 37
GENERAL LONG-TERM DEBT ACCOUNT GROUP:
Schedule of General Long-Term Debt 38
111. STATISTICAL SECTION
General Governmental Expenditures by Function
General Governmental Revenues by Source
Utility Tax Revenue By Source; Franchise Fee Revenue by Source
Property Tax Levies and Collection
Assessed and Estimated Actual Value of Taxable Property
Property Tax Rates Direct and Overlapping Governments
Ratio of Annual Debt Service Expenditures for Net Bonded Debt to
General Governmental Expenditures
Schedule of Direct and Overlapping Debt - General Obligation Bonds
Ratio of Net Bonded Debt to Assessed Value and Per Capita
Revenue Bond Coverage
Demographic Statistics
Property Value, Construction and Bank Deposits
Principal Taxpayers
Miscellaneous Statistical Data
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
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
Management Letter in Accordance with the Rules of the Auditor General of the
State of Florida 55
Report of Independent Certified Public Accountants on Compliance and Internal
Control Over Compliance Applicable to a Major State Financial Assistance Project 57
Schedule of Expenditures of State Financial Assistance
Note to Schedule of Expenditures of State Financial Assistance
Schedule of Findings and Questioned Costs
59
60
61
INTRODUCTORY SECTION
V I L L A G E OF K E Y B I S C A Y N E
Village Council
Joe I Rasco, Mayor
Robert Oldakowski, Vice Mayor
Scott Bass
Martha Fdez-Leon Broucek
Alan H Fein
Mortimer Fried
James L Peters
Village Manager
Jacqueline R Menendez
Office of the Village Manager
February 19, 2003
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, 2002, 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 2001 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,
the general purpose financial statements, notes to the general purpose financial
statements, required supplementary information 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 the 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 No. 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 •Finance and Administrative Services
•Police •Office of the Village Clerk
•Fire Rescue •Office of the Village Manager
•Recreation •Office of the Village Attorney
•Public Works
-i-
85 West McIntyre Street • Key Biscayne, Florida 33149 • (305) 365-5514 • (305) 365-8936
MISSION STATEMENT "TO PROVIDE A SAFE, QUALITY COMMUNITY ENVIRONMENT FOR ALL ISLANDERS TI IROUGH RESPONSIBLE GOVERNMENT"
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 south, and by Crandon Park, a 960-acre park administered by Miami-Dade County, to the north. The
Village currently has an area of approximately 1.25 square miles and population estimated at 10,608
residents.
Mayor 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 fiscal year 2002, 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, a major beach renourishment
project, completion of the Ocean Park Phase II, implementation of a Community Information Strategy
and Action Plan, enhancement of the Senior Program, hiring a new manager, investigating options for
increased playing fields, and implementation of an equipment replacement program for the Fire Rescue
department.
To begin with, fiscal year 2002 witnessed completion of the Beach Renourishment Project. This project
accomplished placing 100,000 cubic yards of beach quality sand on the Village beach from the
Commodore Club southern boundary to the Towers northern boundary. State funding was secured in the
amount of $1.189 million, and county funding supplied an additional $670,000. The completion of this
project significantly enhanced the effected shoreline and restored a vital buffer between the coast and the
Atlantic Ocean.
-ii-
Honorable Mayor, Village Council and Citizens
Village of Key Biscayne
In the previous year, Ocean Park Phase I was built, consisting of a palm plaza, a trellised pavilion,
landscaping and retaining walls, and water and sewer hook-ups. Phase I combined the unparalleled
beauty provided by the Atlantic Ocean and the Key Biscayne beach which is undeniably the Village of
Key Biscayne's greatest asset. The intent of the Beach Park Plan was to achieve simplicity by design and
to provide access for Village Residents to our greatest amenity.
Completion of Ocean Park Phase H was celebrated in the summer of 2002. Included in this phase was a
nine foot wide Beachfront Promenade, installation of an interactive water display as its center point,
construction of a 1,060 square foot open air pavilion, construction of restrooms with outdoor shower
facilities and construction of an observation tower with storage areas. A landscaped open space has been
designated as a natural passive area with no programmed activity. Modeled after traditional South
Florida landscapes, a variety of native palms, trees, and shrubbery will provide the primary palette for
this area. The beach area was extended westward from the ocean 225 feet.
The Community Information Strategy and Action Plan was launched during fiscal year 2002 with great
success. The continued improvement of cable channel 16 was realized through increased public service
airtime and enhanced programming under the direction of Village staff. Two PEG channels are
underway and will further increase programming abilities in the very near future. Most computer
workstations were replaced with new units in fiscal year 2002 with the ultimate goal of an entire network
of all departments a realizable goal in the next fiscal year. Emphasis was placed on website
improvements and completion is on schedule. This project will greatly enhance residents' availability to
information regarding Village departments and services that are provided, including a message board
feature. Also included in this project are formation of a periodic newsletter and formulation of a policy
regarding media and press relations.
Fiscal year 2002 saw the hiring of its first Seniors Coordinator responsible for addressing the needs of
the senior citizens of the Village. Programs to educate seniors as to the many services available on a
federal, state and local level have been introduced. This year also saw the pilot program for senior
transportation implemented with an eye for a permanent program as a solution to this critical need.
In response to one of the goals and objectives set for fiscal year 2002 and with the retirement of the
Village's first and only manager, the search for a new Village Manager was launched. A nationwide
search yielded five finalists from which the new manager was selected. Jacqueline R. Menendez, a local
candidate, was selected, and took over as Village manager on May 6, 2002.
The issue of increasing the amount of playing fields to its residents was addressed during fiscal year
2002. Due to the physical limitations of being an island community, alternatives were sought to provide
these much needed facilities. The Village was successful in negotiating an agreement with the Catholic
Church to utilize their school fields. Another vacant parcel of land was leased from a second party to
accommodate the Village's soccer program.
-iii-
Honorable Mayor, Village Council and Citizens
Village of Key Biscayne
This year also saw the implementation of the first departmental equipment replacement program. The
Fire Rescue Department established, based upon critical needs, a replacement program to address aging
fire apparatus and support vehicles. During fiscal year 2003, two new pieces of firefighting apparatus
will be placed in service. In the near future, provision has been made and funds reserved for replacement
of rescue ambulances and related support vehicles. This program will insure that Village residents and
visitors continue to receive the superior service and call response that can be expected from this
department.
Finally, fiscal year 2002 was also a year in which significant progress was made in the area of the Village
Civic Center. The Fire Station and Police/Administration buildings neared completion at year end.
These state of the art facilities will house all Village departments and are designed to stress a user-
friendly atmosphere. A land purchase of the corner parcel of Crandon Boulevard and McIntyre Street
completed the scheme of a continuous governmental civic center area.
For the Future
Village of Key Biscayne residents can be assured that during the fiscal year 2003, their government
would continue to provide them with more and better services. For instance, increased code compliance
efforts will result in improvements that will positively affect all residents, administered by Building,
Zoning & Planning.
This department will continue to improve the quality of services offered to our citizens. During fiscal
year 2003, it is intended to place the building permit system on the internet. This will enable citizens and
contractors to track the status of plans, permits and inspections. The department is storing plans on CD-
ROMS. This enables retrieval of plans and printing of copies in the Building, Zoning & Planning office.
Keeping with the improvement theme, the Public Works Department will also be involved in numerous
infrastructure improvements in the fiscal year 2003. Major projects for 2003 include: replacement of street
signs, initiation of master plans for Crandon Boulevard improvements and Harbor Drive improvements,
establishing a tree replacement program, installation of lighting and landscaping improvements on
Grapetree Drive, and assisting in the parking improvements at the local middle school. In addition, Public
Works will continue to oversee the contracts awarded for solid waste collection, street sweeping and catch
basin cleaning and maintenance, as well as all Village landscaping and maintenance contractors.
Important in maintaining and enhancing of the Villagers' unique lifestyle are the activities of the
Recreation Department. During fiscal year 2003, the Department will continue to offer a swimming
program at the Miami Rowing and Water Sports Center. Also, the department has increased efforts to
meet the needs of Key Biscayne's senior population. Working with Keep Seniors on Key Biscayne
Committee (KSOKB), the department is developing a program that will meet the information, recreation,
and service needs of this valued population.
-iv-
Honorable Mayor, Village Council and Citizens
Village of Key Biscayne
Participation in the Key Biscayne Athletic Club activities continues to increase as well as the number of
programs they provide. Next year, new programs that started in fiscal year 2002 will be continued and
improved.
The department will also continue to 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. The department shall finalize
planning for the new Community Center.
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 to the library of
$42,000 in fiscal year 2002, the facility will provide an additional 25 hours per week of operation,
including Sundays, between October and May.
The Village Police Department is also anticipating fiscal year 2003 to be most productive. A number of
safety and drug abuse resistance programs are taught to students in all the Village's schools, as well as
pedestrian safety. The Village benefits from all of the efforts of the police department as it enjoys the
lowest crime rates in all of Miami-Dade County.
Patrol officers will increase the checking of businesses at night watching for unlocked doors and open
windows. Community Oriented Policing (COP) officers conduct door-to-door visits of businesses and
residences providing crime prevention information, hurricane preparedness pamphlets, registering bicycles,
and conducting security surveys will all increase during fiscal year 2003. As always, new residents will
continue to receive welcome baskets from the Chamber of Commerce delivered by police officers.
Departmental Focus
Each year the City will focus attention on the efforts and accomplishments of a selected department.
This year, the Recreation Department has been selected for this purpose.
The Department is composed of a Recreation Director, a Sports Coordinator, a Seniors Coordinator, and part-
time volunteer Administrative Assistants. All members of the department work towards a common goal, to
contribute to safe quality community recreational programs designed to meet the diverse needs of its residents.
The department annually hosts the following special events; Halloween Haunted House, Key Biscayne
Lighthouse Run & Walk, Concert Series, Winterfest, Spring Egg Hunt, and the Fourth of July Fireworks.
All of these events are provided at no cost to participants. The department continues to assist civic
groups with their special events as well as contract with outside agencies to provide additional programs
and facilities. The department is looking forward to construction of the new Community Center, which
-v-
Honorable Mayor, Village Council and Citizens
Village of Key Biscayne
will increase the range of programs available to the Village. Funds have been reserved to purchase a new
bus to transport participants to various events in comfort and convenience. The staff position of Seniors
Coordinator has addressed a vital need to provide attention to the island's senior citizens.
FINANCIAL INFORMATION
Accounting System, Internal Control and Budgetary Control
The Village's accounting records for governmental funds operations are maintained on a modified
accrual basis, with revenues being recorded when available and measurable, and expenditures being
recorded when the services or goods are received and the liabilities are incurred.
Budgetary control is maintained at the 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.
-vi-
Honorable Mayor, Village Council and Citizens
Village of Key Biscayne
General operating expenditures, fixed charges and capital improvement costs not accounted for through
other funds are accounted for in the General Fund.
The amount of General Fund revenues and expenditures from various sources are shown in the following
schedule:
REVENUES (GAAP Basis)
Sources FY 2002
Property Taxes $ 9,569,030 $ 8,738,608 $ 830,422 10%
Utility Taxes 2,258,931 1,772,208 486,723 27%
Franchise Fees 639,072 783,513 (144,441)-18%
Intergovernmental 971,136 930,169 40,967 4%
Licenses and Permits 859,435 1,308,229 (448,794)-34%
Charges for Services 336,134 440,136 (104,002)-24%
Other 74,959 18,400 56,559 307%
Interest 89,838 291,408 (201,570)-69%
Grants 196,919 278,345 (81,426)-29%
Total Revenues $ 14,995,454 $ 14,561,016 $ 434,438
EXPENDITURES AND TRANSFERS (GAAP Basis)
Net %
Function FY 2002 FY 2001 Change Change
General Government $ 1,486,638 $ 1,270,062 $ 216,576 17%
Public Works 802,218 933,096 (130,878)-14%
Building, Zoning & Planning 1,264,943 1,235,529 29,414 2%
Parks and Recreation 539,058 452,804 86,254 19%
Public Safety 6,926,254 6,172,932 753,322 12%
Debt Service 2,435,845 1,606,875 828,970 52%
Non-Departmental 799,424 630,657 168,767 27%
Capital Outlay 243,372 272,722 (29,350)-11%
Transfer to Capital Improvement Fund -1,250,001 1,250,001)-100%
Total Expenditures and Transfers $14,497,752 $13,824,678 $ 673,074
Net %
FY 2001 Changes Change
-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 was intended to come from
annual appropriations in the General Fund budget. These appropriations were 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 was from a series of
Revenue Bonds, the first of which was issued July 30, 1999.
Enterprise Funds
Enterprise funds are established to finance and account for the acquisition, operation and maintenance of
facilities and services, and the cost of providing these goods and services on a continuing basis is
financed through the collection of charges from users. The three enterprise funds are:
1. Stormwater Utility System
2. Solid Waste
3. Sanitary Sewer System
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. At present this project is on hold until a future
period.
Fiduciary Fund
The Fiduciary Fund Type is 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, 2002,
the following is recorded as a Fiduciary Fund:
Pension Trust Fund
The Village Council, on October 1, 1997, established a retirement plan for sworn police and
firefighters in compliance with Part VII, Chapter 112, Florida Statutes, and Section 14,
Article X of the State Constitution. Each member is required to contribute 14% of his/her
-viii-
Honorable Mayor, Village Council and Citizens
Village of Key Biscayne
salary until September 30, 2001. This rate is adjusted each year thereafter, based on the most
recent actuarial valuation of the plan. The current rate of contributions is 10.5%.
The Plan also receives funding from the State of Florida under F.S. 175 and 185. The net assets in the
Plan as of September 30, 2002 were $2,107,801.
Other Plans Administered by the Village
A 401(a) money purchase plan is offered by the Village for its employees and was created in accordance
with Internal Revenue Code Section 401. The plan managed by independent plan administrators, permits
employees to defer a portion of their salary until future years. The Village does not have a fiduciary
responsibility over the Plan assets, therefore, it is not included in the Village's financial statements, but is
included as a footnote disclosure. The 401(a) fund had approximately $3,000,000 in investments as of
September 30, 2002.
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, 2002 were approximately $1,000,000. 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 this Plan in their financial statements and no disclosure is required.
General Fixed Assets
The General Fixed Assets of the Village are those assets used in the performance of general
governmental functions. In accordance with generally accepted accounting principles for local
governments, the Village does not record depreciation on general fixed assets nor does it record
infrastructure assets such as roads, bridges, curbs and gutters, streets and sidewalks, drainage systems,
and similar assets that are immovable and of value only to the Village. Assets are recorded at cost except
donations, which are recorded at fair market value at the date of receipt. As of September 30, 2002, the
general fixed assets acquired amount to $48,698,189. Major additions for fiscal year 2002 were for land
acquisitions, public safety equipment and vehicles.
Debt Administration
The Village of Key Biscayne has four outstanding obligations: 1) a 10-year $9,200,000 Land Acquisition
Revenue Bond, Series 1993, which was issued on December 20, 1993 at 4.36% from Northern Trust
Bank to purchase the land for the Village Green. The balance on September 30, 2002 was $2,165,000; 2)
$7,200,000 in Stormwater Utility Bonds, Series 1999, was issued January 26, 1999 from Bank of
America at 4.13% for 20 years. The balance on September 30, 2002 was $6,755,000; 3) a $10,000,000
-ix-
Honorable Mayor, Village Council and Citizens
Village of Key Biscayne
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 bonds were issued through Bank of
America; 4) a $10,000,000 Land Acquisition and Capital Improvement Revenue Bond, Series 2000 at
5.24% for 20 years to purchase land and construct a Village Civic Center Building. The bonds were
issued through Wachovia Bank.
Cash Management
The Village has several cash management vehicles and investment accounts or money market accounts in
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 Local Government Surplus Funds Trust Fund administered
by the State Board of Administration, which as of September 30, 2002 had a balance of $3,451,154.
Risk Management
The Village is insured with the Coregis Florida Cities Program for liability and property coverage and
with the Preferred Governmental Insurance Trust (PGIT), 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, 2001. The Village has received this
award each year since incorporation in 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, 2001. This award has been received every year since 1992.
In order to receive these awards, a governmental unit must publish an easily readable and efficiently
organized CAFR and 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.
-x-
Honorable Mayor, Village Council and Citizens
Village of Key Biscayne
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,
VILLAGE OF KEY BISCAYNE, FLORIDA
VILLAGE OFFICIALS
SEPTEMBER 30, 2002
VILLAGE COUNCIL
Joe I. Rasco, Mayor
Robert Oldakowski, Vice Mayor
Scott Bass
Martha Fdez-Leon Broucek
Alan H. Fein
Mortimer Fried
James L. Peters
VILLAGE MANAGER
Jacqueline R. Menendez
VILLAGE CLERK
Conchita H. Alvarez, CMC
VILLAGE ATTORNEY
Weiss, Serota, Helfman, Pastoriza & Guedes, P.A.
FINANCE DIRECTOR
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, 2001
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.
President
6;1%oExecutive Director
Organizational Chart
VOTERS OF
KEY B/SCAYNE
Village Clerk Special Master
Village
Council
Village Manager
Local Planning
Agency
Village Attorney
Police/Fire
Retirement
Board
Assistant to
the Manager
Department of
Building,
Zoning and
Planning
Building
Zoning
Planning
Code
Enforcement
Department of
Emergency
Services
Fire Rescue
Police
Department of
Recreation
Special Events
Sports and
Athletics
Programs
and Tours
Department of
Public
Works
Village Engineer
Contract
Supervisor
Stormwater
Management
Refuse
Collection
and Recycling
Department of
Finance and
Administrative
Services
Finance/
Accountin
Personnel/
Benefits
FINANCIAL SECTION
RCH Rachlin Cohen & Holtz LLP
Certified Public Accountants & Consultants
REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
Honorable Mayor, Village Council and Village Manager
Village of Key Biscayne, Florida
We have audited the accompanying general purpose financial statements of the Village of Key Biscayne,
Florida (the Village) as of and for the year ended September 30, 2002, 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, 2002, 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 January 10, 2003
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 26 are presented for purposes of
additional analysis and are not a required part of the general purpose financial statements. Such
information has been subjected to the auditing procedures applied in the audit of the general purpose
financial statements and, in our opinion, is fairly presented in all material respects in relation to the
general purpose financial statements taken as a whole.
-1-
One Southeast Third Avenue, Tenth Floor, Miami, Florida 33131 • Tel 305-377-4228 , Fay 30?-377-8331
Offices in Miami Ft Lauderdale • West Palm Beach a Stuart
wei rchcpa coin
IcmLcr or Summit Imrinahonal 1~~u~ialr~ In, I, ith othwr in prin'ipal citic, thwur;hout'bc «oild
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.
&'U'ni toJtfrW ~ 41-P
Miami, Florida
January 10, 2003
GENERAL PURPOSE
FINANCIAL STATEMENTS
(Combined Statements -Overview)
VILLAGE OF KEY BISCAYNE, FLORIDA
COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUPS
SEPTEMBER 30, 2002
(WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 2001)
Governmental
Fund Types
Proprietary Fiduciary
Fund Types Fund Type
Account
Groups
Capital
Trust
and
General
Fixed
General
Long-Term
Totals
(Memorandum Only)
General Protects Enterprise Agency Assets Debt 2002 2001
ASSETS AND OTHER DEBITS
Cash and cash equivalents $ 2,724,623 $ 3,632,899 $ 419,809 $ - $ - $ - $ 6,777,331 $ 20,812,183
Investments 1,112,261 -1,006,984 2,162,691 - 4,281,936 5,740,383
Due from other funds 44,731 873,527 20,312 -- - 938,570 1,501,819
Property taxes receivable 14,615 -- -- - 14,615 36,673
Other receivables 499,864 934,077 275,514 45,110 - - 1,754,565 754,506
Prepaid items 7,290 7,290 152,696
Capitalized loan fees and interest 99,781 -- - 99,781 259,584
Fixed assets, net 9,068,694 48,698,189 - 57,766,883 39,941,501
Amount to be provided for retirement of general long-term debt -- 23,477,108 23,477,108 24,562,060
Total assets and other debits $ 4,403,384 5,440,503 $ 10,891,094 $ 2,207,801 $ 48,698,189 $ 23,477,108 $ 95,118,079 $ 93,761,405
LIABILITIES. EQUITY AND OTHER CREDITS
Liabilities:
Accounts payable and accrued liabilities $ 427,364 $ 1,150,568 $ - $ 100,000 $ - $ - $ 1,677,932 $ 1,123,664
Retainage payable -222,596 - -- - 222,596 139,244
Deposits and performance bonds 1,410
Due to other funds 20,312 873,527 44,731 -- - 938,570 1,501,819
Revolving loan --770,466 -- - 770,466 887,983
Rebatable arbitrage 179,962
Compensated absences payable 25,000 1,312,108 1,337,108 1,263,379
Revenue bonds payable 6,625,000 22,165,000 28,790,000 30,120,000
Total liabilities 472,676 2,246,691 7,440,197 100,000 23,477,108 33,736,672 35,217,461
Equity and other credits:
Investment in general fixed assets 48,698,189 48,698,189 30,598,888
Contributed capital 2,682,901 2,682,901 2,682,901
Retained earnings 767,996 -767,996 824,587
Fund balance:
Reserved 3,308,447 3,193,812 - 2,107,801 - - 8,610,060 23,492,106
Unreserved:
Designated 622,261 -- -- - 622,261 945,462
Total equity and other credits 3,930,708 3,193,812 3,450,897 2,107,801 48,698,189 - 61,381,407 58,543,944
Total liabilities, equity and other credits $ 4,403,384 $ 5,440,503 $ 10,891,094 $ 2,207,801 $ 48,698,189 $ 23,477,108 $ 95,118,079 $ 93,761,405
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, 2002
(WITH COMPARATIVE TOTALS FOR FISCAL YEAR ENDED SEPTEMBER 30, 2001)
General
Capital
Projects
Totals
(Memorandum Only)
Find Funds 2002 2001
Revenues:
Property taxes $ 9,569,030 $ -$ 9,569,030 $ 8,738,608
Utility taxes 2,258,931 -2,258,931 1,772,208
Franchise fees 639,072 -639,072 783,513
Intergovernmental 971,136 -971,136 930,169
Licenses and permits 859,435 -859,435 1,308,229
Charges for services 336,134 -336,134 440,136
Interest 89,838 258,566 348,404 1,342,973
Grants 196,919 1,195,956 1,392,875 811,997
Settlement -65,000 65,000 -
Contributions 21,994 -21,994 -
Other 52,965 -52,965 18,400
Total revenues 14,995,454 1,519,522 16,514,976 16,146,233
Expenditures:
Current:
General government 1,486,638 -1,486,638 1,270,062
Public works 802,218 -802,218 933,096
Building, zoning, and planning 1,264,943 -1,264,943 1,235,529
Parks and recreation 539,058 -539,058 452,804
Public safety 6,926,254 -6,926,254 6,172,932
Non-departmental 799,424 -799,424 630,657
Capital outlay 243,372 17,803,124 18,046,496 5,302,908
Debt Service:
Principal 1,015,000 -1,015,000 975,000
Interest 1,420,845 -1,420,845 631,875
Total expenditures 14,497,752 17,803,124 32,300,876 17,604,863
Excess (deficiency) of revenues over expenditures 497,702 (16,283,602)(15,785,900)(1,458,630)
Other financing sources (uses):
Operating transfers in 3,000,000 3,000,000 1,250,000
Operating transfers out (3,000,000)(3,000,000)(1,250,000)
Bond proceeds -10,000,000
Total other financing sources (uses)-10,000,000
Excess (deficiency) of revenues and other financing
sources over expenditures and other financing uses 497,702 (16,283,602)(15,785,900)8,541,370
Fund balances, beginning 3,433,006 19,477,414 22,910,420 14,369,050
Fund balances, ending $ 3,930,708 $ 3,193,812 $ 7,124,520 $ 22,910,420
See notes to general purpose financial statements.
VILLAGE OF KEY BISCAYNE, FLORIDA
STATEMENT OF REVENUES AND EXPENDITURES
(BUDGETARY BASIS)
BUDGET AND ACTUAL - GENERAL FUND
FISCAL YEAR ENDED SEPTEMBER 30, 2002
Budge t
Budgetary
Actual
Variance
Favorable
(Unfavorable)
Revenues:
Property taxes $ 9,358,443 $ 9,569,030 $ 210,587
Utility taxes 1,955,000 2,258,931 303,931
Franchise fees 650,000 639,072 (10,928)
Intergovernmental 964,900 971,136 6,236
Licenses and permits 640,947 859,435 218,488
Charges for services 103,000 336,134 233,134
Interest 200,000 89,838 (110,162)
Grants 50,250 196,919 146,669
Contributions -21,994 21,994
Other -52,965 52,965
Total revenues 13,922,540 14,995,454 1,072,914
Expenditures:
Current:
General government 1,394,672 1,488,117 (93,445)
Public works 772,631 807,813 (35,182)
Building, zoning and planning 1,284,382 1,264,943 19,439
Parks and recreation 524,556 560,832 (36,276)
Public safety 6,757,861 6,957,831 (199,970)
Non-departmental 752,593 839,943 (87,350)
Debt service:
Principal 1,015,000 1,015,000 -
Interest 1,420,845 1,420,845 -
Total expenditures 13,922,540 14,355,324 (432,784)
Excess of revenues over expenditures 640,130 640,130
Other financing sources (uses):
Appropriation of prior years' fund balance -
expenditures of prior year reserves -(142,428)(142,428)
Total other financing sources (uses)-(142,428)(142,428)
Excess of revenues and other financing sources
over expenditures and other financing uses $ - $ 497,702 $ 497,702
See notes to general purpose financial statements.
c
VILLAGE OF KEY BISCAYNE, FLORIDA
COMBINED STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS
ENTERPRISE FUNDS
FISCAL YEAR ENDED SEPTEMBER 30, 2002
(WITH COMPARATIVE TOTALS FOR FISCAL YEAR ENDED SEPTEMBER 30, 2001)
2002 2001
Operating revenue $ 815,474 $ 810,662
Operating expenses:
General and administrative costs 358,837 349,580
Depreciation 273,919 273,919
Total operating expenses 632,756 623,499
Operating income 182,718 187,163
Non-operating revenue (expense):
Interest income 42,061 89,852
Interest expense 281,370 286,749
Total non-operating expense 239,309 196,897
Net loss (56,591)(9,734)
beginningRetained earnings 824,587 834,321,
Retained earnings, ending $ 767,996 $ 824,587
See notes to general purpose financial statements.
VILLAGE OF KEY BISCAYNE, FLORIDA
COMBINED STATEMENT OF CASH FLOWS
ENTERPRISE FUNDS
FISCAL YEAR ENDED SEPTEMBER 30, 2002
(WITH COMPARATIVE TOTALS FOR FISCAL YEAR ENDED SEPTEMBER 30, 2001)
2002 2001
Cash flows from operating activities:
Operating income $ 182,718 $ 187,163
Adjustments to reconcile operating income to net
cash provided by operating activities:
Depreciation 273,919 273,919
Changes in operating assets and liabilities:
(Increase) decrease in:
Accounts receivable (117,601)(36,291)
Interest receivable 159,802 (72,441)
Increase (decrease) in:
Accounts payable and accrued expenses (72,898)68,710
Due to other funds 24,419 33,488
Total adjustments 267,641 200,409
Net cash provided by operating activities 450,359 387,572
Cash flows from capital and related financing activities:
Payments on revenue bonds (315,000)-
Net proceeds (payments) from revolving loan (117,517)22,165
Interest paid 281,370 286,749
Net cash used by capital and related financing activities 713,887 264,584
Cash flows from investing activities:
Purchase of investments (74,754)(932,230)
Interest received 42,061 89,852
Net cash used by investing activities 32,693 842,378
Net decrease in cash and cash equivalents (296,221)(719,390)
Cash and cash equivalents, beginning 716,030 1,435,420
Cash and cash equivalents, ending $ 419,809 $ 716,030
See notes to general purpose financial statements.
VILLAGE OF KEY BISCAYNE, FLORIDA
PENSION TRUST FUND
STATEMENT OF CHANGES IN PLAN NET ASSETS
FISCAL YEAR ENDED SEPTEMBER 30, 2002
(WITH COMPARATIVE TOTALS FOR FISCAL YEAR ENDED SEPTEMBER 30, 2001)
2002 2001
ADDITIONS
Contributions:
Plan members and Village $ 708,897 $ 379,240
State 173,755 230,370
Total contributions 882,652 609,610
Investment losses 221,616 (378,408)
Total additions 661,036 231,202
DEDUCTIONS
Distributions 51,672 110,607
Administrative expenses 28,711 27,226
Total deductions 80,383 137,833
Net increase 580,653 93,369
Net assets held in trust for pension benefits:
Beginning of year 1,527,148 1,433,779
End of year $ 2,107,801 $ 1,527,148
See notes to general purpose financial statements.
NOTES TO GENERAL PURPOSE
FINANCIAL STATEMENTS
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
FISCAL YEAR ENDED SEPTEMBER 30, 2002
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 accounted for in a manner similar to proprietary fund types
(economic resources measurement focus and the 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.
11
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
3. Budgets and Budgetary Accounting (Continued)
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, 2002, there were no supplemental appropriations.
(e) Formal budgetary integration is employed as a management control device for the general
fund.
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, 2002, expenditures exceeded
appropriations in general government activities by $93,445, in public works by $35,182, in
parks and recreation by $36,276 and in public safety by $199,970, and in non-departmental
by $87,350 as presented in the Statement of Revenues and Expenditures - Budget and
Actual - General Fund. It is the policy of the Village that all related revenues generated by
each department be applied to that department in determining if any department exceeds its
appropriations in total. In applying all related revenues to each department for fiscal year
2002, it was determined that no department resulted in a deficit situation.
(h) Encumbrance accounting is not employed in the general fund. Unencumbered
appropriations lapse at year end. Encumbered amounts are not reappropriated in the
following year's budget.
(i) Budget amendments were not significant in relation to the original appropriations.
4. Deposits and Investments
The Village's cash and cash equivalents are considered to be cash on hand and short-term
investments with original maturities of three months or less from the date of acquisition.
Deposits include cash on hand and certificates of deposit.
VILLAGE 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 based on quoted
market prices.
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 Securityfor Public
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
NOTE 2. DEPOSITS AND INVESTMENTS (Continued)
Deposits (Continued)
Deposits Act, the State Treasurer requires all Florida qualified public depositories to deposit
with the Treasurer or another banking institution eligible collateral. In the event of a failure
of a qualified public depository, the remaining public depositories would be responsible for
covering any resulting losses. 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 Funds 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 Fund 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, 2002, 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 $1,553,378
Bonds 594,542
Common stocks 850,379
Government securities 302,066
3,300,365
Investments not subject to categorization:
Mutual funds 415,705
State Board of Administration investment pool 3,451,154
$ 7,167,224
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
NOTE 2. DEPOSITS AND INVESTMENTS (Continued)
Investments (Continued)
A reconciliation of cash and investments as shown on the combined balance sheet is as
follows:
Carrying amount of deposits $ 3,892,043
Carrying amount of investments 7,167,224
$11,059,267
Cash and cash equivalents $ 6,777,331
Investments 4,281,936
$11,059,267
NOTE 3. PROPERTY TAXES
Property values are assessed on a county-wide basis by the Miami-Dade County Property
Appraiser as of January 1, the lien date, of each year and are due the following November 1.
Taxable value of property within the Village is certified by the Property Appraiser and the
Village levies a tax millage rate upon the taxable value, which will provide revenue required for
the fiscal year beginning October 1.
Property taxes levied each November 1, by the Village and all other taxing authorities within the
County, are centrally billed and collected by Miami-Dade County, with remittances to the
Village of their proportionate share of collected taxes. Taxes for the fiscal year beginning
October 1 are billed in the month of November, subject to a 1% per month discount for the
period November through February, and are due no later than March 31. On April 1, unpaid
amounts become delinquent with interest and penalties added thereafter. Beginning June 1, tax
certificates representing delinquent taxes with interest and penalties are sold by Miami-Dade
County, with remittance to the Village for its share of those receipts. At September 30, 2002,
there were no material delinquent taxes.
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
NOTE 4. FIXED ASSETS
The following is a summary of changes in general fixed assets:
Balance
September 30,
2001 Additions
Balance
September 30,
Transfers 2002
Land $ 16,571,873 $ 5,261,963 $ - $ 21,833,836
Buildings 802,290 12,377 - 814,667
Improvements other than buildings 7,186,103 2,465,011 1,343,262 10,994,376
Equipment 2,306,470 413,603 - 2,720,073
Furniture and fixtures 44,975 23,475 - 68,450
Construction in progress 3,687,177 9,922,872 (1,343,262) 12,266,787
Total $ 30,598,888 $18,099,301 $ - $ 48,698,189
Depreciation is not required and has not been provided on general fixed assets.
The following is a summary of proprietary fund type fixed assets:
Balance
September 30,
2001 Additions
Balance
September 30,
Deletions 2002
Stormwater utility system $ 10,056,660 $ - $ - $ 10,056,660
Construction in progress 373,249 -- 373,249
10,429,909 -- 10,429,909
Less accumulated depreciation (1,087,295)(273,919)- (1,361,214)
Total $ 9,342,614 $ (273,919)$ - $ 9,068,695
NOTE 5.INTERFUND RECEIVABLES AND PAYABLES
Receivable Fund Payable Fund Amount
Civic Center Capital Improvements $ 873,527
General Stormwater Utility 44,731
Solid Waste General 20,312
$ 938,570
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
NOTE 6. LONG-TERM DEBT
The following is a summary of changes in general long-term debt account group:
Balance
September 30,
2001 Additions Payments
Balance
September 30,
2002
Revenue bonds payable $ 23,180,000 $ - $1,015,000 $ 22,165,000
Compensated absences payable 1,202,098 110,010 -1,312,108
Rebatable arbitrage 179,962 27,507 207,469 -
$ 24,562,060 $ 137,517 $1,222,469 $ 23,477,108
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. Interest accrues at 4.36% per annum.
Debt service requirements to maturity are as follows:
Principal Interest Total
Fiscal year ending September 30:
2003 $1,060,000 $ 71,286 $1,131,286
2004 1,105,000 24,089 1,129,089
$2,165,000 $ 95,375 $2,260,375
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.
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
NOTE 6. LONG-TERM DEBT (Continued)
Revenue Bonds (Continued)
Land Acquisition and Capital Improvement Revenue Bonds (Continued)
Debt service requirements to maturity are as follows:
Principal Interest Total
Fiscal year ending September 30:
2003 $ 355,000 $ 463,131 $ 818,131
2004 375,000 445,921 820,921
2005 390,000 427,886 817,886
2006 410,000 409,026 819,026
2007 430,000 389,223 819,223
2008-2012 2,505,000 1,611,469 4,116,469
2013-2017 3,205,000 941,704 4,146,704
2018-2020 2,330,000 168,326 2,498,326
$10,000,000 $4,856,686 $ 14,856,686
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:
Principal Interest Total
2003 $ - $ 524,000 $ 524,000
2004 -524,000 524,000
2005 380,000 514,044 894,044
2006 400,000 493,608 893,608
2007 420,000 472,124 892,124
2008-2012 2,450,000 1,997,750 4,447,750
2013-2017 3,165,000 1,266,115 4,431,115
2018-2021 3,185,000 344,661 3,529,661
$10,000,000 $6,136,302 $ 16,136,302
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
NOTE 6. 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 ls`, ranging from
$195,000 in fiscal year 2004 to $595,000 in fiscal year 2020. The payment due on
October 1, 2003 of $185,000 was paid on September 30, 2002. Interest accrues at 4.13%
per annum.
Debt service requirements to maturity are as follows:
Principal Interest Total
Fiscal year ending September 30:
2003 $ - $ 281,253 $ 281,253
2004 195,000 273,613 468,613
2005 205,000 265,558 470,558
2006 215,000 257,093 472,093
2007 225,000 248,213 473,213
2008-2012 1,740,000 1,066,366 2,806,366
2013-2017 2,340,000 651,301 2,991,301
2018-2020 1,705,000 143,105 1,848,105
$ 6,625,000 $3,186,502 $ 9,811,502
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 April 15, 2003 at an
interest rate of 2.56% per annum. The loan matures on October 15, 2022. Principal
outstanding as of September 30, 2002 is $770,466. In November 2002, the Village prepaid
approximately $373,000 of its revolving loan with the State of Florida for its sanitary sewer
construction project, which brought the outstanding balance to $437,548 prior to the first
required payment on April 15, 2003.
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
NOTE 6. LONG-TERM DEBT (Continued)
Revolving Loan (Continued)
Principal Interest Total
Fiscal year ending September 30:
2002 (prepayment)$ 332,918 $ 40,082 $ 373,000
2003 7,780 6,288 14,068
2004 17,242 10,892 28,134
2005 17,686 10,448 28,134
2006 18,142 9,993 28,135
2007 18,609 9,525 28,134
2008-2012 100,488 40,182 140,670
2013-2017 114,118 26,553 140,671
2018-2022 143,483 11,253 154,736
$ 770,466 $165,216 $ 935,682
Subsequent Bond Issuance
In November 2002, the Village issued Capital Improvement Revenue Bonds, Series 2002, in
the amount of $9,987,551 for the costs of constructing and equipping a community center.
NOTE 7. COMMITMENTS AND CONTINGENCIES
Construction Commitments
As of September 30, 2002, the Village had outstanding construction commitments of
approximately $1,800,000 to complete the civic center project.
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.
71
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
NOTE 7. COMMITMENTS AND CONTINGENCIES (Continued)
Grants Contingency
Federal and State programs in which the Village participates were audited in accordance with
the provision of regulatory requirements and grantor agencies. Pursuant to those provisions,
certain programs were tested for compliance with applicable grant requirements. While no
matters of noncompliance were disclosed by the audit, government agencies may subject
grant programs to additional compliance tests that may result in disallowed costs. In the
opinion of management, future disallowances of grant expenditures, if any, would not have a
material adverse effect on the financial condition of the Village.
NOTE 8. RESERVED/DESIGNATED FUND BALANCES
As of September 30, 2002, 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 462,540
Compensated absences 503,617
Emergencies 2,200,000
Prepaid items 7,290
$ 3,308,447
Capital project funds:
Capital projects $ 3,193,712
Pension Trust Fund:
Employees pension benefits $1,527,148
Designated Fund Balances
General fund:
Inspector fees $ 275,000
Recreation center equipment 147,261
Playing fields 200,000
$ 622,261
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
NOTE 9. SEGMENT INFORMATION FOR ENTERPRISE FUNDS
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:
Stormwater
Utili
Sanitary
Solid Sewer
Waste Construction Total
Operating revenues $ 525,681 $ 289,793 $- $ 815,474
Depreciation 273,919 --273,919
Operating income (loss)166,669 19,509 (3,460)182,718
Interest expense 281,370 --281,370
Net income (loss)(81,144)21,125 3,428 (56,591)
Net working capital 1,189,418 152,787 335,683 1,677,888
Total assets 9,938,709 152,787 799,598 10,891,094
Bonds payable/loans payable 6,625,000 -770,466 7,395,466
Total equity 3,268,978 152,787 29,132 3,450,897
NOTE 10. DEFINED CONTRIBUTION PLANS
The Village as a single-employer contributes to the Village of Key Biscayne Money Purchase
Plans, which are defined contribution plans created in accordance with Internal Revenue Code
Section 401(a). Under one Plan, which is available to Village employees, the Village contributes
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,
2002 were approximately $328,000 while the employee contributions were approximately
$91,000. Amendments to the Plan must be authorized by the Village Council.
NOTE 11. DEFINED BENEFIT PENSION PLAN
Plan Description
Effective October 1, 1997, the Village established a single-employer Public Employee
Retirement System (PERS) to provide pension benefits for its police officers and firefighters.
The PERS is considered to be part of the Village's financial reporting entity and is included in
the Village's financial reports as a pension trust fund. The Plan was created under Village
Ordinance 97-21. The latest available actuarial valuation is as of October 1, 2001. The PERS
does not issue a separate audited financial report for the Plan.
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
NOTE 11. DEFINED BENEFIT PENSION PLAN (Continued)
Plan Description (Continued)
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 3% (changed from 2% in
the prior year) 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
highest years within 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. 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. Benefits are
recorded when paid.
At October 1, 2001 (date of the latest actuarial valuation), Plan membership consisted of the
following:
Retirees and beneficiaries currently receiving benefits and terminated
employees entitled to benefits but not yet receiving them
Current employees:
Vested 40
Non-vested 17
Total 5-2
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 participant contribution rate for the year
ended September 20, 2002 was 14%. The minimum member contribution rate is 9% of base
salary. This funding policy is designed to limit the Village's exposure to contribute to the
Plan.
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
NOTE 11. DEFINED BENEFIT PENSION PLAN (Continued)
Annual Pension Cost and Net Pension Obligation
The annual pension cost and net pension obligation as of October 1, 2001 was as follows:
Annual required contribution $ 377,777
Interest on net pension obligation (13,015)
Adjustment to annual required contribution 16,829
Annual pension cost 381,591
Contributions made 429,027
Increase in net pension obligation (47,436)
Net pension obligation, beginning of year (144,611)
Net pension obligation, end of year $ (192,047)
The annual required contribution for the current year was determined as part of the October 1,
2001 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 of 6% per year. Both (a) and
(b) included an inflation component of 4%. The actuarial value of assets was determined
using the difference between actual and expected return recognized over five years.
Trend Information
Fiscal Year
Ended
Annual Pension
Cost (APC)
Percentage of
APC Contributed
Net Pension
Obligation
9/30/00 $ 4,485 0.0%$ (57,951)
9/30/01 46,934 284.6 (144,611)
9/30/02 381,591 112.4 (192,047)
REQUIRED SUPPLEMENTARY
INFORMATION
VILLAGE OF KEY BISCAYNE, FLORIDA
REQUIRED SUPPLEMENTARY INFORMATION
PENSION TRUST FUND
SCHEDULE OF EMPLOYER CONTRIBUTIONS
Year
Ended
September 30,
Annual
Required
Contribution
Actual
Contribution
Percentage
Contributed
1999 $ 1,497 $ 32,525 2,173%
2000 2,636 110,700 4,199%
2001 45,199 133,594 296%
2002 377,777 429,027 114%
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 10/1/01
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%
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, 2002
(WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 2001)
2002 2001
ASSETS
Cash and cash equivalents $ 2,724,623 $ 4,025,611
Investments 1,112,261 1,098,385
Due from other funds 44,731 -
Property taxes receivable 14,615 13,982
Accounts receivable 499,864 533,359
Prepaid Costs 7,290 -
Total assets $ 4,403,384 $ 5,671,337
LIABILITIES AND FUND BALANCES
Accounts payable and accrued liabilities $ 427,364 $ 673,821
Compensated absences 25,000 61,281
Deposits and performance bonds -1,410
Due to other funds 20,312 1,501,819
Total liabilities 472,676 2,238,331
Fund balances:
Reserved for:
Special disaster relief 135,000 135,000
Law enforcement 462,540 519,389
Compensated absences 503,617 503,617
Prepaid items 7,290 -
Emergencies 2,200,000 2,000,000
3,308,447 3,158,006
Unreserved:
Designated for:
Playing fields 200,000 -
Inspector fees 275,000 275,000
Recreation center equipment 147,261 -
622,261 275,000
Total fund balances 3,930,708 3,433,006
Total liabilities and fund balances $ 4,403,384 $ 5,671,337
77
VILLAGE OF KEY BISCAYNE, FLORIDA
GENERAL FUND
SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL
FISCAL YEAR ENDED SEPTEMBER 30, 2002
Budge t
Budgetary
Basis
Actual
Variance
Favorable
(Unfavorable)
Revenues:
Property taxes $ 9,358,443 $ 9,569,030 $ 210,587
Utility taxes 1,955,000 2,258,931 303,931
Franchise fees 650,000 639,072 (10,928)
Intergovernmental:
Other 964,900 971,136 6,236
Licenses and permits:
Occupational licenses 40,000 53,983 13,983
Building permits 600,947 805,452 204,505
640,947 859,435 218,488
Charges for services 103,000 336,134 233,134
Interest 200,000 89,838 (110,162)
Grants 50,250 196,919 146,669
Contributions -21,994 21,994
Other -52,965 52,965
Total revenue $ 13,922,540 $ 14,995,454 $ 1,072,914
(Continued)
VILLAGE OF KEY BISCAYNE, FLORIDA
GENERAL FUND
SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL
(Continued)
FISCAL YEAR ENDED SEPTEMBER 30, 2002
Budge t
Budgetary
Basis
Actual
Variance
Favorable
(Unfavorable)
Expenditures:
General government:
Elected officials $ 74,955 $ 79,779 $ (4,824)
Administration 768,162 811,213 (43,051)
Village attorney 551,555 597,125 (45,570)
Total general government 1,394,672 1,488,117 (93,445)
Public works 772,631 807,813 (35,182)
Building, planning and zoning 1,284,382 1,264,943 19,439
Parks and recreation 524,556 560,832 (36,276)
Public safety 6,757,861 6,957,831 (199,970)
Non-departmental 752,593 839,943 (87,350)
Debt service:
Principal 1,015,000 1,015,000
Interest 1,420,845 1,420,845
2,435,845 2,435,845
Total expenditures $ 13,922,540 $ 14,355,324 $ (432,784)
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, 2002
(WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 2001)
Capital Civic Totals
Improvement Center 2002 2001
ASSETS
Cash and cash equivalents $ 649,437 $ 2,983,462 $ 3,632,899 $ 16,070,542
Investments 2,197,725
Due from other funds 873,527 873,527 1,501,819
Receivables 934,077 934,077 70,820
Prepaid items 152,696
Total assets $ 1,583,514 $ 3,856,989 $ 5,440,503 $ 19,993,602
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable and accrued liabilities $ 191,442 $ 959,126 $ 1,150,568 $ 376,944
Retainage payable 9,137 213,459 222,596 139,244
Due to other funds 873,527 -873,527 -
Total liabilities 1,074,106 1,172,585 2,246,691 516,188
Fund balance:
Reserved for:
Prepaid items 152,696
Beach improvements 99,860
Beach park and walk 672,738
Community center 30,100
Capital projects 509,408 2,684,404 3,193,812 17,851,558
509,408 2,684,404 3,193,812 18,806,952
Unreserved:
Designated for:
Police/fire equipment and building 40,000
Holiday colony lighting 100,000
Capital projects 271,462
Athletic fields 185,000
Sidewalk improvements 74,000
670,462
Total fund balances 509,408 2,684,404 3,193,812 19,477.414
Total liabilities and fund balances $ 1,583,514 $ 3,856,989 $ 5.440,503 $ 19,993,602
zn
VILLAGE OF KEY BISCAYNE, FLORIDA
CAPITAL PROJECTS FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
FISCAL YEAR ENDED SEPTEMBER 30, 2002
(WITH COMPARATIVE TOTALS FOR FISCAL YEAR ENDED SEPTEMBER 30, 2001)
Capital Civic Totals
Improvement Center 2002 2001
Revenues:
Interest $ 95,276 $ 163,290 $ 258,566 $ 1,051,565
Grants 1,195,956 -1,195,956 533,652
Settlement -65,000 65,000 -
Total revenues 1,291,232 228,290 1,519,522 1,585,217
Expenditures:
Capital outlay 2,650,133 15,152,991 17,803,124 5,030,186
Total expenditures 2,650,133 15,152,991 17,803,124 5,030,186
Deficiency of revenues over expenditures (1,358,901)(14,924,701)(16,283,602)(3,444,969)
Other financing sources:
Operating transfers in -3,000,000 3,000,000 1,250,000
Operating transfers out (3,000,000)-(3,000,000)-
Bond proceeds ---10,000,000
Total other financing sources (3,000,000)3,000,000 -11,250,000
Excess (deficiency) of revenues and other
financing sources over expenditures (4,358,901)(11,924,701)(16,283,602)7,805,031
Fund balances, beginning 4,868,309 14,609,105 19,477,414 10,199,223
Residual equity transfers ---1,473,160
Fund balances, ending $ 509,408 $ 2,684,404 $ 3,193,812 $ 19,477,414
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, 2002
(WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 2001)
Stormwater Sanitary
Utility Solid Sewer Totals
System Waste Construction 2002 2001
ASSETS
Current assets:
Cash and cash equivalents $ 23 $ 84,103 $ 335,683 $ 419,809 $ 716,030
Investments 1,006,984 --1,006,984 932,230
Due from other funds -20,312 -20,312 -
Accounts receivable, net 227,142 48,372 -275,514 157,913
Total current assets 1,234,149 152,787 335,683 1,722,619 1,806,173
Fixed assets, net 8,695,445 -373,249 9,068,694 9,342,613
Capitalized loan fees and interest 9,115 -90,666 99,781 259,584
Total assets $ 9,938,709 $ 152,787 $ 799,598 $ 10,891,094 $ 11,408,370
LIABILITIES AND FUND EQUITY
Current liabilities:
Accounts payable and accrued liabilities $ - $ - $- $ - $ 72,899
Due to other funds 44,731 -44,731 -
Current portion of revenue bonds payable -130,000
Total current liabilities 44,731 44,731 202,899
Long-term debt:
Revolving loan -770,466 770,466 887,983
Revenue bonds payable 6,625,000 --6,625,000 6,810,000
Total liabilities 6,669,731 -770,466 7,440,197 7,900,882
Fund equity:
Contributed capital 2,682,901 -2,682,901 2,682,901
Retained earnings 586,077 152,787 29,132 767,996 824,587
Total fund equity 3,268,978 152,787 29,132 3,450,897 3,507,488
Total liabilities and fund equity $ 9,938,709 $ 152,787 $799,598 $ 10,891,094 $ 11,408,370
VILLAGE OF KEY BISCAYNE, FLORIDA
ENTERPRISE FUNDS
COMBINING STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN
RETAINED EARNINGS
FISCAL YEAR ENDED SEPTEMBER 30, 2002
(WITH COMPARATIVE TOTALS FOR FISCAL YEAR ENDED SEPTEMBER 30, 2001)
Stormwater
Utility Solid
Sanitary
Sewer Totals
SS sy tem Waste Construction 2002 2001
Operating revenue $ 525,681 $ 289,793 $ - $ 815,474 $ 810,662
Operating expenses:
General and administrative costs 85,093 270,284 3,460 358,837 349,580
Depreciation 273,919 --273,919 273,919
Total operating expenses 359,012 270,284 3,460 632,756 623,499
Operating income (loss)166,669 19,509 (3,460)182,718 187,163
Non-operating revenues (expense):
Interest income 33,557 1,616 6,888 42,061 89,852
Interest expense (281,370)--281,370 286,749
Total non-operating revenues
(expenses)(247,813)1,616 6,888 239,309 196,897
Net income (loss)(81,144)21,125 3,428 (56,591)(9,734)
Retained earnings, beginning 667,221 131,662 25,704 824,587 834,321
Retained earnings, ending $ 586,077 $ 152,787 $ 29,132 $ 767,996 $ 824,587
VILLAGE OF KEY BISCAYNE, FLORIDA
ENTERPRISE FUNDS
COMBINING STATEMENTS OF CASH FLOWS
FISCAL YEAR ENDED SEPTEMBER 30, 2002
(WITH COMPARATIVE TOTALS FOR FISCAL YEAR ENDED SEPTEMBER 30, 2001)
Stormwater Sanitary
Utility
System
Solid
Waste
Sewer
Construction
Totals
2002 2001
Cash flows from operating activities:
Operating income (loss)$ 166,669 $ 19,509 $ (3,460)$ 182,718 $ 187,163
Adjustments to reconcile operating income (loss) to
net cash provided by operating activities:
Depreciation 273,919 --273,919 273,919
Change in operating assets and liabilities:
(Increase) decrease in:
Accounts receivable (125,801)8,200 -(117,601)(36,291)
Interest receivable 42,285 -117,517 159,802 (72,441)
Increase (decrease) in:
Accounts payable and accrued expenses (72,898)--(72,898)68,710
Due to other funds 44,731 20,312 -24,419 33,488
Total adjustments 162,236 12,112 117,517 267,641 200,409
Net cash provided by operating activities 328,905 7,397 114,057 450,359 387,572
Cash flows from capital and relating financing activities:
Net proceeds from revolving loan --(117,517)(117,517)22,165
Principal payment for revenue bonds (315,000)--(315,000)-
Interest paid 281,370 --281,370 286,749
Net cash used by capital and related
financing activities 596,370 -(117,517)713,887 264,584
Cash flows from investing activities:
Purchase of investments (74,754)--(74,754)(932,230)
Interest received 33,557 1,616 6,888 42,061 89,852
Net cash provided (used) by investing activities 41,197 1,616 6,888 32,693 842,378
Net increase (decrease) in cash and cash equivalents (308,662)9,013 3,428 (296,221)(719,390)
Cash and cash equivalents, beginning 308,685 75,090 332,255 716,030 1,435,420
Cash and cash equivalents, ending 23 $ 84,103 335,683 $ 419,809 $ 716,030
-34-
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, 2002
(WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 2001)
2002 2001
General fixed assets:
Land $ 21,833,836 $ 16,571,873
Buildings 814,668 802,290
improvements other than buildings 10,994,376 7,186,103
Equipment 2,720,072 2,306,470
Furniture and fixtures 68,450 44,975
Construction in progress 12,266,787 3,687,177
Total general fixed assets $ 48,698,189 $ 30,598,888
Investment in general fixed assets by source:
General fund $ 22,425,884 $ 14,249,454
Capital project funds 22,272,305 12,349,434
Donations 4,000,000 4,000,000
Total investment in general fixed assets $ 48,698,189 $ 30,598,888
VILLAGE OF KEY BISCAYNE, ]FLORIDA
SCHEDULE OF GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY
SEPTEMBER 30, 2002
Land Buildina
Improvements
Other
Than
Buildings Equipment
Furniture
and
Fixtures
Construction
Progress Total
General government $ 4,000,000 $ 31,149 $ 9,359,038 $ 165,469 $ 46,975 $ 12,266,787 $ 25,869,418
Parks and recreation 14,502,621 156,019 1,635,338 193,622 3,325 -16,490,925
Public safety 3,331,215 627,500 -2,360,982 18,150 -6,337,847
$ 21,833,836 $ 814,668 $ 10,994,376 $ 2,720,072 $ 68,450 $ 12,266,787 $ 48,698,189
VILLAGE OF KEY BISCAYNE, FLORIDA
SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY
FISCAL YEAR ENDED SEPTEMBER 30, 2002
Balance
September 30,
2001
Balance
Additions/ September 30,
Transfers Deletions 2002
General government $ 13,830,173 $ 12,039,245 $ - $ 25,869,418
Parks and recreation 10,842,992 5,647,933 - 16,490,925
Public safety 5,925,723 412,124 - 6,337,847
$ 30,598,888 $ 18,099,301 $ - $ 48,698,189
'I I
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, 2002
(WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 2001)
2002 2001
Amount to be provided for retirement of general long-term debt $ 23,477,108 $ 24,562,060
General long-term debt payable:
Rebatable arbitrage $ - $ 179,962
Compensated absences payable 1,312,108 1,202,098
Bonds payable 22,165,000 23,180,000
Total general long-term debt payable $ 23,477,108 $ 24,562,060
STATISTICAL SECTION
VILLAGE OF KEY BISCAYNE, FLORIDA
GENERAL GOVERNMENTAL EXPENDITURES BY FUNCTION
LAST TEN FISCAL YEARS
Fiscal
Year
General
Government
Public
Safe
Parks and
Recreation
Public
Works Total
1993 $ 2,848,857 $ 2,790,379 $ 240,794 $ 185,257 $ 6,065,287
1994 4,126,094 4,453,539 9,601,922 .1.782,001 18,963,556
1995 5,524,305 4,294,606 211,159 573,844 10,603,914
1996 3,124,384 4,634,385 234,154 753,823 8,746,746
1997 3,577,170 5,017,882 239,029 660,780 9,494,861
1998 3,671,970 5,278,315 255,704 828,287 10,034,276
1999 4,173,995 5,644,903 293,664 730,521 10,843,083
2000 4,795,894 6,068,147 380,502 830,360 12,074,903
2001 5,015,845 6,172,932 452,804 933,096 12,574,677
2002 6,230,222 6,926,254 539,058 802,218 14,497,752
Note: Includes general fund only (GAAP basis).
Note: General government includes economic development, building, zoning and planning, debt service,
capital outlay and non-departmental expenditures.
(1) Includes acquisition of land for $9,238,317 for the Village Green.
VILLAGE OF KEY BISCAYNE, FLORIDA
GENERAL GOVERNMENTAL REVENUES BY SOURCE
LAST TEN FISCAL YEARS
Fiscal
Year
Property
Taxes
Licenses
and
Permits
Inter-
Governmental
Utility
Taxes
Franchise
Fees Other 1 Interest Total
1993 $ 3,536,480 $ 1,458,733 $ 2,485,979 $ 1,212,084 $ 625,815 $ 169,429 $ 121,676 $ 9,610,196
1994 6,640,045 629,246 997,501 1,268,428 668,020 115,664 288,978 10,607,882
1995 6,820,807 351,152 788,062 1,257,179 652,844 665,086 369,540 10,904,670
1996 6,486,019 430,208 791,403 1,294,486 638,096 1,495,521 280,570 11,416,303
1997 6,495,465 531,401 766,638 1,555,812 667,815 463,171 248,646 10,728,948
1998 6,963,900 1,003,768 843,812 1,514,697 709,067 392,975 233,654 11,661,873
1999 7,012,714 668,672 807,924 1,621,473 740,031 1,295,001 231,820 12,377,635
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 1,772,208 738,513 736,881 291,408 14,516,016
2002 9,569,030 859,435 971,136 2,258,931 639,072 608,012 89,838 14,995,454
Note: Includes general fund only (GAAP basis).
(1) Includes charges for services, grants, contributions and other.
VILLAGE OF KEY BISCAYNE, FLORIDA
UTILITY TAX REVENUE BY SOURCE
LAST TEN FISCAL YEARS
Fiscal
Year
Telecom-
Electricity munications Gas
Fuel
Oil Water Total
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
2002 1,097,566 904,475 ~>> 53,360 318 203,612 2,259,331
FRANCHISE FEE REVENUE BY SOURCE
LAST TEN FISCAL YEARS
Fiscal
Year
Cable
Electrici Television Telephone Total
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
2002 639,072 - - (1)639,072
(1) Simplified communications tax effective October 1, 2001 replaced the utility tax and franchise fees
on telecommunications and cable television
VILLAGE OF KEY BISCAYNE, FLORIDA
PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
Tax
Year"'
Fiscal
Year
Assessed
Value
Tax
LM
Total
Collecte42)
Percent
Collected
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 97.0%
2001 2002 2,731,833,645 9,850,992 9,515,138 96.6%
(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
Tax
Year
Real
PEW e
Personal
Pro e
Net
Assessed
Property
Value
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
2002 3,227,971,184 31,948,797 3,259,919,981
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
Fiscal
Year
Village Operating
Millage M i llage
Debt
Service
Millage
Total
County
M i llage
SFWMD
M i llage
FIND
M i llage
Total
State
M i 'llage
Debt
Operating Service
M i llage Milla a
Total
School
Millage Other Total
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
2002 3.606 5.889 0.390 6.279 0.697 0.039 0.736 8.482 0.770 9.252 0.451 20.324
(1) Village established its own fire district effective October 1, 1993
Source: Miami-Dade County Property Appraiser's Office
-44-
VILLAGE OF KEY BISCAYNE, FLORIDA
RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR NET
BONDED DEBT TO GENERAL GOVERNMENTAL EXPENDITURES
LAST TEN FISCAL YEARS
Fiscal
Year Principal Interest 1
Total
Debt
Service 2
Total
General
Governmental
Expenditures
Ratio of Debt
Service to
General
Governmental
Expenditures
1995 $ -$ 194,989 $ 194,989 $ 19,053,562 01.0%
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%
2002 1,015,000 1,420,845 2,435,845 14,497,752 16.8%
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 DFBT
GENERAL OBLIGATION BONDS
(IN THOUSANDS)
SEPTEMBER 30, 2002
Jurisdiction
Taxable
Property
Value L I)
Net
General
Obligation
Bonded
Debt
Percentage
Applicable
to
Key
Biscayne
Amount
Applicable
to
Key
Biscayne
Direct:
Village of Key Biscayne $ 3,259,920 $ 29,935 100.00%$ 29,935
Overlapping:
Miami-Dade County 115,792,742 270,986 (2)2.82%(3)7,642
Miami-Dade County Schools 116,749,284 781,952 (2)2.79%(3)21,816
$ 1,052,938 $ 29,458
(1) Source: Miami-Dade County Property Appraiser's Office - Taxable Property Value reflects
January 1, 2002 amounts.
(2) Source: Miami-Dade County Finance Department - Net General Obligation Bonded Debt
outstanding figures are as of September 30, 2002.
(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
Fiscal
Year Population
Assessed
Value 1
Net
Bonded
Debt 2
Ratio
of Net
Bonded
Debt to
Assessed
Value
Net
Bonded
Debt
Per
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 1.10%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 1.21%2,823
2002 10,698 (8)2,731,833,645 29,935,000 1.10%2,798
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
As of July 1999 - University of Florida Economic and Business Research
Bureau of Census - 2000 Census Data
As of April 2001 - University of Florida Economic and Business Research
(8) As of April 2002 - University of Florida Economic and Business Research
VILLAGE OF KEY BISCAYNE, FLORIDA
REVENUE BOND COVERAGE
STORMWATER REVENUE BONDS (SERIES 1999)
LAST TEN FISCAL YEARS
Gross
Stormwater
Net
Revenue
Available
for Debt Service Requirements
Fiscal
Year
Fee
Revenue
Operating
Expenses
Debt
Service Principal Interest Total Coveraize
1999 $ 480,586 $ 42,773 $ 437,813 $ -$ 335,412 $ 335,412 130.53%
2000 494,955 33,453 461,502 135,000 281,875 416,875 110.71%
2001 518,961 79,708 439,253 125,000 291,622 416,622 105.43%
2002 559,239 85,091 474,148 130,000 336,253 466,253 101.69%
AO
VILLAGE OF KEY BISCAYNE, FLORIDA
DEMOGRAPHICS STATISTICS
POPULATION
Estimates of Population by Age
Under 20 Years 20 to 64 Years 65 Years or Older
Year Number Percent Number Percent Number Percent Total
2000 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
Ap&lo, Black Hispanic Capita
2000 $ 62,542 $ 13,417 $ 46,682 $ 54,612
UNEMPLOYMENT RATES (Percent)
1994 1995 1996 1997 1998 1999 2000 2001 2002
Miami-Dade County*7.9 6.8 7.8 7.1 6.7 5.9 5.6 5.7 7.4
Village of Key Biscayne 3.6 3.1 3.6 3.3 3.1 2.7 2.6 2.8 3.2
* Source: U.S. Bureau of Labor Statistics.
VILLAGE OF KEY BISCAYNE, FLORIDA
PROPERTY VALUE, CONSTRUCTION AND BANK DEPOSITS
LAST TEN FISCAL YEARS
Residential Commercial (000s Omitted]
Fiscal
Year
Total
Permits
Issued
# of
Permits Valuation
# of
Permits Valuation
Total
of
Construction
County Village
Bank Bank
Deposits (1) Deposits (2)
1993 1,737 1,633 $ 26,822,424 104 $ 4,383,673 $ 31,206,097 $ 18,146,647 $-
1994 2,205 2,081 25,410,312 124 45,567,390 70,977,702 17,524,140 -
1995 2,857 2,568 33,820,503 289 2,099,661 35,920,164 17,938,762 -
1996 3,171 3,060 65,318,655 111 1,231,097 66,549,752 14,561,654 -
1997 3,570 3,402 82,481,700 168 667,328 83,149,028 34,664,829 -
1998 3,002 2,879 129,200,900 106 3,176,031 132,376,931 36,659,805 347,178
1999 2,711 2,416 94,287,095 295 56,792,994 151,080,089 39,633,149 377,060
2000 1,793 1,641 85,244,371 152 9,359,770 94,604,141 38,539,107 364,973
2001 749 667 59,607,528 82 10,485,477 70,093,005 45,064,000 328,602
2002 856 769 23,206,296 87 1,101,721 24,308,017 51,297,000 311,837
(1) State of Florida, Division of Banking, as of June 30 of each respective year. Information is for
Miami-Dade County, which the Village of Key Biscayne is apart of. Information is not available
for the Village of Key Biscayne alone.
(2) Deposits within Village of Key Biscayne limits. Information for all years presented was not available.
VILLAGE OF KEY BISCAYNE, FLORIDA
PRINCIPAL TAXPAYERS
SEPTEMBER 30, 2002
Taxpayer
Taxable
Valuation
% of
Total
Assessed
Valuation
Sonesta Beach Resort, LP
Key Biscayne Ocean Club Ltd.$ 33,570,000 1.23%
GB Hotel Partners, Ltd.31,765,354 1.16%
Pitu, Inc.27,144,582 0.99%
Galleria of Key Biscayne, Inc.9,188,029 0.34%
Carlos M. De La Cruz 7,978,440 0.29%
OceanClub Community Assoication 7,327,008 0.27%
Grand Bay Tower Associates 6,600,000 0.24%
Phillip Gevas 5,825,760 0.21%
Yoyot Realty 5,825,635 0.21%
5,518,156 0.20%
$ 140,742,964 5.14%
Source: Miami-Dade County Appraiser's Office
VILLAGE OF KEY BISCAYNE, FLORIDA
MISCELLANEOUS STATISTICAL DATA
SEPTEMBER 30, 2002
Date of Incorporation 1991
Form of Government Council-Manager
Area 1.25 Square Miles
Miles of Street 22.4 Linear Miles
Fire Protection:
Number of Stations I
Police Protection:
Number of Stations I
Education:
Attendance Centers 2
Number of Students 1,504
Number of Teachers 90
Miami-Dade County Water & Sewer Authority
Number of Customers 1,977
Average Daily Consumption 31,669 gallons
Sewers:
Number of Customers 931
Fire Hydrants 249
Building Permits Issued 856
Recreation and Culture:
Number of Parks 3
Number of Libraries 1 (Operated by Miami-Dade County)
Number of Tennis Centers I
Number of Recreational Centers I
Employees:
Full Time 92
c1)
COMPLIANCE SECTION
RCH Rachlin Cohen & Holtz LLP
Certified Public ACCOUntants & Consultant
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 Auditine 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, 2002 and for the year then ended, and have issued our report dated January 10,
2003. 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 Reportiniz
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.
-53-
One Southeast Third Av enue, Tenth Floor, Miami, Florida X3131 • Tel 303-377-4228 • Fav 30~-377-8331
Offices in Miami • Ft Lauderdale a West Palm Beach • Stuart
t~ wkti ichcpa corn
Member o- ,ummit Intetnahnnal Inc ~~ Ith ottlue" 11 pimopal ~dtr, throb how the rw IJ
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.
Miami, Florida
January 10, 2003
J'I LAP
RCH Rachlin Cohen & Holtz LLP
Certified Public Accountants & Consultants
Management Letter in Accordance with the Rules of the
Auditor General of the State of Florida
Honorable Mayor, Village Council and Village Manager
Village of Key Biscayne, Florida
We have audited the general purpose financial statements of the Village of Key Biscayne, Florida (the
Village) as of and for the year ended September 30, 2002, and have issued our report thereon dated
January 10, 2003. 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 a Major State
Financial Assistance Project and Schedule of Findings and Questioned Costs. Disclosures in those
reports, which are dated January 10, 2003, 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, 2002, 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. There were no recommendations made in the preceding annual financial audit.
3. The Village, during fiscal year 2002, 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.
-55-
One Southeast Third Avenue, Tenth Floor, Miami, Florida 33131 • Tel 305-377-4228 • Fa> 30~-377-8331
Offices in Miami • Ft Lauderdale a West Palm Beach - Stuart
uwki rchcpacorn
M, ndv i ct Stonmit lilt, inahonal a-,,,atc. In, a I,,, crhie, in piin"pal dm~ throughout Ill, „rill
C
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, 2002 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,
2002.
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.
AGf.k,u eosf~ jvz" LAP
Miami, Florida
January 10, 2003
RCH Rachlin Cohen & Holtz LLP
Certified Public Accountants & Constiltank
Report of Independent Certified Public Accountants on Compliance and Internal
Control Over Compliance Applicable to a Mayor 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 its major state financial assistance project for the year ended
September 30, 2002. The Village's major state financial assistance project is 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 its major state financial
assistance project 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 its major state financial assistance project for the year ended September 30, 2002.
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.
-57-
One Southeast Third Avenue, Tenth Floor, Miami, Florida 33131 @ Tel 307-377-1228 o Fay 30;-377-8331
OthceS in Miami • Ft Lauderdale • West Palm Beach • Stuart
vv vv v~ ichcpa corn
VCmhL i ot~iimmit Intcrnat,onal \ u Me, lilt Frith othcc, in pimupal Jt[c, thiou"houtthr word
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.
Miami, Florida
January 10, 2003
VILLAGE OF KEY BISCAYNE, FLORIDA
SCHEDULE OF EXPENDITURES OF STATE FINANCIAL ASSISTANCE
FISCAL YEAR ENDED SEPTEMBER 30, 2002
Florida Department of Environmental Protection
Direct Programs:
Florida Beach Erosion Control 37.003 99DA1 $ 934,077
Florida Department of Law Enforcement
Direct Programs:
Local Law Enforcement Block Grant 16.592 02-CJ-2M-11-23-02-068 10,264
Department of Community Affairs
Direct Programs:
Emergency Management Preparedness
and Assistance Grant 52.008 02-CP-04-11-23-02-216 6,674
Florida Department of Health - Bureau of EMS
Direct Programs:
EMS Grant 64.005 C1013 14,789
Total expenditures of state financial assistance $ 965,804
State
State Contract
CFSA Grant
State Agency and Program Title No. No. Expenditures
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTE TO THE SCHEDULE OF EXPENDITURES OF STATE FINANCIAL ASSISTANCE
FISCAL YEAR ENDED SEPTEMBER 30, 2002
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.
VILLAGE OF KEY BISCAYNE, FLORIDA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FISCAL YEAR ENDED SEPTEMBER 30, 2002
SECTION I - SUMMARY OF AUDITOR'S RESULTS
Financial Statements
Type of auditor's report issued:Unqualified Opinion
l o financial e o tinItltroverrprg:n erna con
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? yes X no
Reportable condition(s) identified not considered to be material weakness? 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
Dollar threshold used to distinguish between Type A and Type B programs: $289,740
VILLAGE OF KEY BISCAYNE, FLORIDA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
(Continued)
SECTION H - 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. One of the new requirements of GASB Statement No. 34
is the capitalization of infrastructure assets.
Recommendation
We recommend that the Village review the new requirements and create an action plan for
implementation. We also recommend that the Village consider increasing the threshold for capitalizing
capital assets. Currently, the Village capitalizes fixed assets with a value of $500 or more; we
recommend that the Village consider increasing their capitalization policy to an amount in excess of that
(i.e., $1,000; $2,500; $5,000). This does not effect the requirement to track fixed assets as required
under Florida Statutes.
Management Response
The Village is currently reviewing the requirements and initiating a plan.
SECTION III - STATE AWARD FINDINGS AND QUESTIONED COSTS
None.
Village of Key Biscayne, Florida
f
i
.11
i fT
Biscayne Bay
I
Miles
1
_T
North Miami
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.