HomeMy Public PortalAboutCAFR 2004.pdfCOMPREHENSIVE
ANNUAL
FINANCIAL
REPORT
FOR THE FISCAL YEAR
ENDED SEPTEMBER 30, 2004
VILLAGE OF KEY BISCAYNE
FLORIDA
HISTORY OF KEY BISCAYNE
ey Biscayne is a seven mile long two mile wide 4.5 square mile barrier island extending southward
from Miami Beach. An ideal vacation destination, Key Biscayne also boasts numerous restaurants,
etail and specialty shops, sports facilities, and marine activities and attractions - many with an
ecological and environmental focus. The Village covers only 1.25 square miles of the central third of the
Island.
Approximately one-half hour from Miami International Airport, the island is located seven miles southeast of
downtown Miami between Biscayne Bay and the Atlantic Ocean. Access is via the Rickenbacker Causeway
or boat.
Recent archeological excavations suggest that the Tequesta Indians lived on Key Biscayne over 1,000 years
ago. Juan Ponce de Leon discovered the island in 1513, naming it Santa Marta and claiming it for Spain.
Florida became a United States Terntory in 1821 and the United States government built the Cape Florida
Lighthouse in 1825. Having survived an Indian attack dunng the Seminole Wars and sabotage during the Civil
War, it remains South Florida's oldest standing structure and Key Biscayne's most famous landmark.
In 1908, William J. Matheson began buying up some of the older homesteads and within 20 years, his family
owned 1,700 of the island's 2,100 acres. In 1940, the Matheson heirs made a deal with Dade County to donate
the northern half of their Key Biscayne holdings to the county for use as a public park if the county would
construct a causeway connecting the island to Miami.
Although bond issues to build both the causeway and the park passed, World War II delayed their construction.
Finally on November 9, 1947, ceremonies celebrated the opening of Rickenbacker Causeway, linking Key
Biscayne with the mainland, and the transfer of the two northern most miles of Key Biscayne to Miami -Dade
County for Crandon Park (975 acres). Access to the Key increased the marketability of the remaining
Matheson land which was destined to become the premiere residential and resort community now known as
the Village of Key Biscayne.
Rickenbacker Causeway was named for Eddie V. Rickenbacker, a World War I American fighter pilot and
recipient of the Congressional Medal of Honor who later pursued careers in the automotive and aviation
industries. Crandon Park was named for Charles H. Crandon, Chairman of the Dade County Commission, who
was a catalyst in making the causeway and the park realities.
The Mackie Brothers began construction on the island's first residential development in 1950, followed by Key
Biscayne's original shopping plaza and hotel. The population increased from 29 residents in 1950 to 2,500
during the following five years.
The Village of Key Biscayne became an incorporated municipality on June 18, 1991. The Village's current
year round population is just under 10,000.
Special thanks to author and island resident Joan Gill Blank for assistance in the preparation of this section.
Front Cover Illustration:
The oldest historical landmark in South Florida, the lighthouse stands 95 feet in the Bill Baggs Cape Florida
State Recreation Area (410 acres) located on the southern tip of Key Biscayne. A major restoration was
completed in July 1996 reverting the Cape Flonda Lighthouse to its 1856 condition. Some 20,000 bricks were
replaced, a new 95 foot high 109 step iron staircase installed, and a 24 foot high iron and glass watchtower
erected. In 1996 the lighthouse was relight as a navigational aid by the U.S. Coast Guard. The Keeper's
Cottage & lighthouse grounds have been designed as an interpretive center and reopened to the public in the
Spring of 1998. The cover illustration was created by 50 year island resident, Marie Swmdall.
VILLAGE OF KEY BISCAYNE, FLORIDA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FISCAL YEAR ENDED SEPTEMBER 30, 2004
Prepared by:
THE FINANCE DEPARTMENT
VILLAGE OF KEY BISCAYNE, FLORIDA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FISCAL YEAR ENDED SEPTEMBER 30, 2004
TABLE OF CONTENTS
PAGE
I. INTRODUCTORY SECTION
Letter of Transmittal
Village Officials vi
Certificate of Achievement for Excellence in Financial Reporting vii
Organization Chart viii
II. FINANCIAL SECTION
REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
MANAGEMENT'S DISCUSSION AND ANALYSIS (Required Supplementary Information)
BASIC FINANCIAL STATEMENTS:
Government -Wide Financial Statements
Statement of Net Assets
Statement of Activities
1-2
3-10
11
12
Fund Financial Statements:
Governmental Fund Financial Statements
Balance Sheet 13
Statement of Revenues, Expenditures and Changes in Fund Balances 14
Reconciliation of the Statement of Revenues, Expenditures and Changes in
Fund Balances of Governmental Funds to the Statement of Activities 15
Proprietary Fund Financial Statements:
Statement of Net Assets 16
Statement of Revenues, Expenses and Changes in Net Assets 17
Statement of Cash Flows 18
Fiduciary Fund Financial Statements:
Statement of Fiduciary Net Assets 19
Statement of Changes in Fiduciary Net Assets 20
Notes to Basic Financial Statements 21-39
REQUIRED SUPPLEMENTARY INFORMATION (OTHER THAN MD&A)
Budgetary Comparison Schedule — General Fund 40
Note to Budgetary Comparison Schedule 41
Schedule of Employer Contributions 42
VILLAGE OF KEY BISCAYNE, FLORIDA
TABLE OF CONTENTS
PAGE
III. COMBINING FINANCIAL STATEMENTS
Combining Statement of Net Assets — Nonmajor Proprietary Funds
Combining Statement of Revenues. Expenses and Changes in Net Assets —
Nonmajor Proprietary Funds
Combining Statement of Cash Flows — Nonmajor Proprietary Funds
43
44
45
IV. STATISTICAL SECTION
Government -Wide Information:
Government -Wide Expenses by Function 46
Government -Wide Revenues 47
Fund Information:
General Governmental Expenditures by Function 48
General Governmental Revenues by Source 49
Utility Tax Revenue By Source; Franchise Fee Revenue by Source 50
Property Tax Levies and Collection 51
Assessed and Estimated Actual Value of Taxable Property 52
Property Tax Rates Direct and Overlapping Governments 53
Ratio of Annual Debt Service Expenditures for Net Bonded Debt to
General Governmental Expenditures 54
Schedule of Direct and Overlapping Debt - General Obligation Bonds 55
Ratio of Net Bonded Debt to Assessed Value and Per Capita 56
Revenue Bond Coverage 57
Demographic Statistics 58
Property Value, Construction and Bank Deposits 59
Principal Taxpayers 60
Miscellaneous Statistical Data 61
V. COMPLIANCE SECTION
Report of Independent Certified Public Accountants on Internal Control over Financial
Reporting and on Compliance and Other Matters Based on an Audit of Financial
Statements Performed in Accordance with Government Auditing Standards
62-63
Management Letter in Accordance with the Rules of the Auditor General of the
State of Florida 64-65
INTRODUCTORY SECTION
C�'pFKEj.
•"'Q' 1;0';
VILLAGE OF KEY BISCAYNE
Village Council
Robert Oldakowski, Mayor
Jorge E Mendia, Vice Mayor
Martha Fdez-Leon Broucek
Carol Diaz -Castro
Mortimer Fried
James L Peters
Robert L.Vernon
Village Manager
Jacqueline R Mendez
Office of the Village Manager
March 25, 2005
To the Honorable Mayor, Members of the Village
Council and Citizens of the Village of Key Biscayne:
The Government Finance Officers Association (GFOA) recommends that all
units of local government publish, within six months of the close of each
fiscal year, a complete set of financial statements presented in conformity with
generally accepted accounting principles (GAAP) in the United States and
audited in accordance with auditing standards generally accepted in the United
States and in accordance with Government Auditing Standards by a firm of
licensed certified public accountants. Pursuant to that recommendation, we
hereby issue the comprehensive annual financial report of the Village of Key
Biscayne for the fiscal year ended September 30, 2004.
This report consists of management's representation concerning the finances
of the Village of Key Biscayne. Consequently, management assumes full
responsibility for the completeness and reliability of all of the information
presented in this report. To provide a reasonable basis for making these
representations, management of the Village of Key Biscayne has established a
comprehensive internal framework that is designed both to protect the
Village's assets from loss, theft, or misuse and to compile sufficient reliable
information for the preparation of the Village of Key Biscayne's financial
statements in conformity with GAAP. Because the cost of internal controls
should not outweigh their benefits, the Village of Key Biscayne's
comprehensive framework of internal controls has been designed to provide
reasonable, rather than absolute, assurance that the financial statements will be
free from material misstatement. As management, we assert that, to the best
of our knowledge and belief, this financial report is complete and reliable in
all material respects.
The firm of Rachlin Cohen & Holtz LLP, licensed certified public accountants
has audited the Village of Key Biscayne's financial statements. The goal of
the independent audit was to provide reasonable assurance that the basic
financial statements of the Village of Key Biscayne for the fiscal year ended
September 30, 2004 are free of material misstatement. The independent audit
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88 West McIntyre Street • Key Biscayne, Florida 33149 • (305) 365-5514 • Fax (305) 365-8936
MISSION STATEMENT "TO PROVIDE A SAFE DUALITY COMMUNITY ENVIRONMENT FOR ALL ISLANDERS THROUGH RESPONSIBLE GOVERNMENT"
involved examining, on a test basis, evidence supporting the amount and disclosures in the
financial statements; assessing the accounting principles used and significant estimates made by
management; and evaluating the overall financial statement presentation. The independent
auditor concluded, based upon the audit, that there was a reasonable basis for rendering an
unqualified opinion that the Village of Key Biscayne's financial statements for the fiscal year
ended September 30, 2004, are fairly presented in conformity with GAAP. The independent
auditor's report is presented as the first component of the financial section of this report.
GAAP requires that management provide a narrative introduction, overview, and analysis to
accompany the basic financial statements in the form of Management's Discussion and Analysis
(MD&A). This letter of transmittal is designed to complement MD&A and should be read in
conjunction with it. The Village of Key Biscayne's MD&A can be found immediately following
the report of the independent certified public accountants.
Profile of the Government
The Village of Key Biscayne, incorporated in 1991, is located on the southern most barrier island
of the United States, Miami -Dade County, Florida approximately 7.5 miles off the coast of
Miami, Florida. The Village of Key Biscayne occupies a land area of 1.25 square miles situated
between Crandon Park and Bill Baggs State Recreation Area. The Village serves a population of
approximately 11,100. The Village of Key Biscayne receives tax levies on real and personal
property located inside its boundaries.
The Village of Key Biscayne has operated under the council-manager form of government since
incorporation. Policymaking and legislative authority are vested in a governing council
consisting of the mayor and six other council members. The Council is responsible among other
things, for passing ordinances and resolutions, adopting the annual budget, appointing the Village
Manager and Village Clerk. The Village Manager is responsible for carrying out the policies and
ordinances of the Council, for overseeing the daily operations of the government, and for
appointing the heads of various departments.
The Village of Key Biscayne offers a wide range of services, including, police protection, fire
and emergency medical service, public works maintenance, a full service building, planning and
zoning department, parks and recreation activities, solid waste collection, and a comprehensive
storm water management system. Certain services are provided through the County School
System and the County Library System through Miami -Dade County.
The annual budget serves as a foundation for the Village of Key Biscayne's financial planning
and control. All departments of the Village are required to submit requests for appropriations to
the Village Manager and these requests are the initiation of developing the proposed budget. The
Village Manager then presents this proposed budget to the Council for review. The Council is
required to hold public hearings on the proposed budget and to adopt a final budget no later than
September 30, the close of the Village's fiscal year. The appropriated budget is prepared by fund
and department. No department may legally expend in excess of the amount appropriated for
that department within an individual fund. The Village Manager may make transfers of
appropriations within a department. Transfers of appropriations between departments or funds
require the approval of the Village Council. The Village Council approves supplemental
appropriations. Budget to actual comparisons are provided in this report for the general fund for
which an appropriated annual budget has been adopted. The general fund, budget to actual
report, is presented in the required supplemental information section of this report.
Local Economy
The Village of Key Biscayne enjoys a favorable economic environment and local indicators to
continued future stability. This exclusive community is comprised of well-educated and involved
citizens who take a genuine interest in the social, business, cultural and governing aspects of their
Village. The Village is comprised of affluent exclusive residential housing stock and three major
shopping centers. There is no industrial area in the community.
Long -Term Financial Planning
The Village has recently completed the first two phases of its Civic Center Project with the
completion of a new Village Hall/ Police Building and a new Fire Station. The third phase, the
Village Community Center, opened in November 2004. Recent completion of the Beach Park
serves as an outlet to the beach with a picnic shelter. Several public works projects have recently
been completed yielding new sidewalks, street improvements, park improvements, and a tree
replacement program. Several new capital projects are under way to improve the safety of the
major roadway through the Village on Crandon Boulevard.
The Village utilizes a comprehensive living projection five years into the future to assess revenue
trends and expenditure needs to assure a balanced stable financial program avoiding millage rate
increases while addressing the various goals and objectives of the community.
Cash Management Policies and Practices
The Village's Cash Management strategy emphasizes immediate funds collection and deposit
into the appropriate fund utilizing ACH debit or wire transfer methods in over 90% of all funds
received. Cash is transferred to a centralized clearing account for all payments at the point of
payment. The clearing account maintains a zero balance exclusive of these transfers. Currently
the Village's investment policy follows Chapter 218, Florida Statutes. Cash in any of the fund's
operating accounts are swept into an overnight repurchase agreement, properly collateralized in
accordance with Chapter 280, Florida statutes. Surplus cash is invested in certificates of deposit
with qualified depositories, and with the State Board of Administration. Investment objectives
are the preservation of principal, liquidity in accordance with planned cash flows, and return on
investment in that order.
Risk Management
The Village is exposed to various risks of loss related to torts, theft of or damage to and
destruction of assets; errors and omissions; injuries to employees; and natural disasters. The
Village participates in the Florida League of Cities Municipal Insurance Trust for workers'
compensation, liability and property insurance. Flood insurance is provided by the Florida State
Flood Insurance Pool.
Pension Benefits
The Village of Key Biscayne sponsors a defined contribution 401(a) pension plan with the
International City Managers' Association, Retirement Corporation (ICMA). Each full time
employee can contribute up to six percent (6%) of his or her pay to the plan; the Village
contributes twelve percent (12%). In addition, the Village sponsors a 457 deferred compensation
plan in which the employees may contribute on a voluntary basis.
A defined benefit pension plan is available to all firefighters and sworn police officers. This plan
is under the direction of a separate board of trustees, two of which are police and fire department
employees. Complete details of this plan can be found in note 13 of the basic financial
statements.
Awards and Acknowledgements
The Government Finance Officers Association (GFOA) awarded a Certificate of Achievement
for Excellence in Financial Reporting to the Village of key Biscayne for its Comprehensive
Annual Financial Report (CAFR) for the fiscal year ended September 30, 2003. This was the
twelfth consecutive year that the Village received this prestigious award. In order to be awarded
a Certificate of Achievement, the government published an easily readable and efficiently
organized CAFR. This report satisfied both GAAP and applicable legal requirements.
The Village of Key Biscayne is presenting this CAFR in accordance with the Governmental
Accounting Standards Board Statement Number 34, more commonly known as GASB 34, a
major new standard, which has changed the method and content governments must report. This
has been the largest single revision of governmental accounting standards and represented a
major effort on the part of the Village to comply with this new standard.
A Certificate of Achievement is valid for a period of one year only. We believe that our current
CAFR continues to meet the Certificate of Achievement Program's requirements and are
submitting it to the GFOA to determine its eligibility for another certificate.
In addition, the Village also received the GFOA's Distinguished Budget presentation Award for
its annual budget document for the 2003-2004 fiscal year. This was the twelfth consecutive year
that the Village has received this prestigious award. In order to qualify for the Distinguished
Budget Presentation Award, the Village's budget document was judged to be proficient in several
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The preparation of this report would not have been possible without the efficient and dediLated
services of the entire staff of all departments of the Village of Ker Biscayne \\c would like to
express our appreciation to all members of all of the departments who assisted and contributed to
the preparation of this report. We would also like to express our appreciation to RaLhlln t ohen &
Holtz, our independent auditors, for their assistance and efforts in helping the Village prepare the c 1l R
Appreciation is also extended to the Mayor and the Village Council for their unfailing 'upport
for maintaining the highest standards of professionalism in the management of the Village of
Key Biscayne's finances.
Respectfully submitted,
cqueline R. Menend
Randolph G. White
Village Manager Finance Director
VILLAGE OF KEY BISCAYNE, FLORIDA
VILLAGE OFFICIALS
SEPTEMBER 30, 2004
VILLAGE COUNCIL
Robert Oldakowski, Mayor
Jorge Mendia, Vice Mayor
Martha Fdez-Leon Broucek
Carol Diaz Castro
Mortimer Fried
James L. Peters
Robert Vernon
VILLAGE MANAGER
Jacqueline R. Menendez
VILLAGE CLERK
Conchita H. Alvarez, CMC
VILLAGE ATTORNEY
Weiss Serota Helfman Pastoriza Guedes Cole & Boniske, P.A.
FINANCE DIRECTOR
Randolph G. White, P.A.
VILLAGE AUDITORS
Rachlin Cohen & Holtz LLP
Accountants • Advisors
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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, 2003
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 fmancial reporting.
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UNITED STATES d
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President
Executive Director
VILLAGE OF KEY BISCAYNE
ORGANIZATIONAL CHART
The Village Manager, who reports directly to the Village Council, manages the Village
of Key Biscayne's day-to-day operations. The Village Manager appoints the Five
Department Heads.
VOTERS
OF
KEY BISCAYNE
Village
Council
Local Planning
Agency
Village Clerk
.Special Master
Village Manage
Village Attorne}I
Assistant
Village Manager
Police/Fire
Retirement
Board
Department of
Building,
Zoning and
Planning
Bu
ilding
Zoning
Planning
Department of
Public Safety
Fire Rescue
Police
Department of
Recreation
Special Events
I Sports and
Athletics
Programs
and Tours
Senior
Services
Department of
Public Works
Enginee
Contract
Supervisor
Stormwater
Management
Refuse
Collection
and Recycling
Department of
Finance and
Administrative
Services
Finance/
Accounting
Personnel/
Benefits
Risk
Management
Maintenance
FINANCIAL SECTION
REPORT OF INDEPENDENT
CERTIFIED PUBLIC ACCOUNTANTS
Cohen
&Holtz
Accountants Advisors
REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
Honorable Mayor, Village Council and Village Manager
Village of Key Biscayne, Florida
We have audited the accompanying financial statements of the governmental activities, the business -type
activities, each major fund and the aggregate remaining fund information of the Village of Key Biscayne,
Florida (the Village) as of September 30, 2004 and for the fiscal year then ended, which collectively
comprise the Village's basic financial statements as listed in the table of contents. These financial
statements are the responsibility of the Village's management. Our responsibility is to express opinions
on these 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 financial statements are free of material misstatement.
An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the
financial statements. An audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial statement presentation. We
believe that our audit provides a reasonable basis for our opinions.
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, the business -type activities, each major fund
and the aggregate remaining fund information of the Village of Key Biscayne, Florida as of September
30, 2004 and the respective changes in the financial position and cash flows, where applicable, thereof
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 December 31,
2004 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 grant agreements and other
matters. The purpose of that report is to describe the scope of our testing of internal control over
financial reporting and compliance and the results of that testing, and not to provide an opinion on the
internal control over financial reporting or on compliance. 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.
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Rachlin Cohen & Holtz LLP
One Southeast Third Avenue • Tenth Floor • Miami, Florida 33131 • Phone 305.377.4228 • Fax 305.377 8331 • www.rachlin.com
An Independent Member of Baker Tilly International
Honorable Mayor, Village Council and Village Manager
Village of Key Biscayne, Florida
Page Two
Management's Discussion and Analysis and the required supplementary information on pages 3 through
10 and pages 40 through 42, respectively, are not a required part of the basic financial statements but are
supplementary information required by accounting principles generally accepted in the United States.
We have applied certain limited procedures, which consisted principally of inquiries of management
regarding the methods of measurement and presentation of the required supplementary information.
However, we did not audit the information and express no opinion on it.
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the Village of Key Biscayne's basic financial statements. The introductory section, the
combining financial statements and statistical tables are presented for purposes of additional analysis and
are not a required part of the basic financial statements. The combining financial statements have been
subjected to the auditing procedures applied in the audit of the basic financial statements and in our
opinion, is fairly stated, in all material respects, in relation to the basic financial statements taken as a
whole. The introductory section and statistical tables have not been subjected to the auditing procedures
applied in the audit of the basic financial statements and, accordingly, we express no opinion on them.
Miami, Florida
December 31, 2004
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Ate- r„,,-.tom,-.tC
Cohen
&Holtz
A 1...
MANAGEMENT'S DISCUSSION AND ANALYSIS
(MD&A)
Management's Discussion and Analysis
As Management of the Village of Key Biscayne, we offer readers of the Village of Key
Biscayne's (the Village) financial statements this narrative overview and analysis of the financial
activities of the Village of Key Biscayne for the fiscal year ended September 30, 2004. We
encourage readers to consider information presented here in conjunction with additional
information that we have furnished in our letter of transmittal which can be found on pages i-v of
this report.
Financial Highlights
• The assets of the Village of Key Biscayne exceeded its liabilities at the close of the most
recent fiscal year by $32,265,295 (net assets). Of this amount, all are either reserved or
designated.
• The Village's total net assets increased by $629,196, this increase is attributable to the
increase of property taxes received due to an increase in the assessed taxable values of
properties in the Village.
• At the close of the current fiscal year, the Village of Key Biscayne's governmental funds
reported an ending fund balance of $4,976,071, a decrease of $95,664 in comparison with the
prior year. This entire total amount is either reserved or designated for spending at the
Council's direction.
• The Village incurred $8,330,462 of new long-term debt during the current fiscal year.
Overview of the Financial Statements
This discussion and analysis are intended to serve as an introduction to the Village of Key
Biscayne's basic financial statements. The Village of Key Biscayne's basic financial statements
comprise three components: 1) government -wide financial statements, 2) fund financial
statements, and 3) notes to the financial statements. This report also contains other
supplementary information in addition to the basic financial statements themselves.
Government -wide financial statements. The government -wide financial statements are
designed to provide readers with a broad overview of the Village of Key Biscayne's finances, in
a manner similar to a private sector business.
The statement of net assets presents information on all of the Village of Key Biscayne's assets
and liabilities, with a difference between the two reported as net assets. Over time, increases or
decreases in net assets may serve as a useful indicator of whether the financial position of the
Village of Key Biscayne is improving or deteriorating.
The statement of activities presents information showing how the government's net assets
changed during the most recent fiscal year. All changes in net assets are reported as soon as the
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underlying event giving rise to the change occurs, regardless of the timing of related cash flows.
Thus, revenues and expenses are reported in this statement for some items that will only result in
cash flows in future periods (e.g., uncollected taxes and earned but unused vacation leave).
Both of the government -wide financial statements distinguish functions of the Village of Key
Biscayne that are principally supported by taxes and intergovernmental revenues (governmental
activities) from other functions that are intended to recover all or a significant portion of their
costs through user fees and charges (business type activities). The governmental activities of the
Village of Key Biscayne include general government, public safety, public works, building
planning & zoning, and parks and recreation.
The government -wide financial statements include only the Village of Key Biscayne itself
(known as the primary government).
The government -wide financial statements can be found on pages 11 and 12 of this report.
Fund Financial Statements. A fund is a grouping of related accounts that is used to maintain
control over resources that have been segregated for specific activities or objectives. The Village
of key Biscayne, like other state and local governments, uses fund accounting to ensure and
demonstrate compliance with finance -related legal requirements. The Village of Key Biscayne
has two fund categories, the governmental funds and the enterprise funds.
Governmental Funds. Governmental funds are used to account for essentially the same
functions reported as governmental activities in the government -wide financial statements.
However, unlike the government -wide financial statements, governmental fund financial
statement focus on near -term inflows and outflows of spend able resources as well as on
balances of spend able resources available at the end of the fiscal year. Such information may be
useful in evaluating a government's near -term financing requirements.
Because the focus of governmental funds is narrower than that of the government -wide financial
statements, it is useful to compare the information presented for the governmental funds with
similar information presented for governmental activities in the government -wide financial
statements. By doing so, readers may better understand the long-term impact of the
government's near -term financing decisions. Both the governmental fund balance sheet and the
governmental fund statement of revenues, expenditures, and changes in fund balances provide a
reconciliation to facilitate this comparison between governmental funds and governmental
activities.
The Village of Key Biscayne maintains three governmental funds, the general fund, and two
capital projects funds.
The Village of Key Biscayne adopts an annual appropriated budget for its general fund. A
budgetary comparison statement has been provided for the general fund to demonstrate
compliance with this budget.
The basic governmental fund financial statements can be found on pages 13 to 15 of this report.
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Proprietary Funds. The Village maintains one type of proprietary fund. Enterprise funds are
used to report the same functions presented as business -type activities in the government -wide
financial statements. The Village uses enterprise funds to account for its Stormwater, Solid
Waste Collection and Sanitary Sewer Construction operations.
The basic proprietary fund financial statements can be found on pages 16-18 of this report.
Fiduciary Funds. Fiduciary funds are used to account for resources held for the benefit of
parties outside the Village. Fiduciary funds are not reflected in the government -wide financial
statements because the resources of those funds are not available to support the Village's own
programs. The accounting used for fiduciary funds is much like that used for proprietary funds.
The basic fiduciary fund financial statements can be found on pages 19-20 of this report.
Notes to the basic financial statements. The notes provide additional information that is
essential to a full understanding of the data provided in the government -wide and fund financial
statements. The notes to the financial statements can be found on pages 21 to 39 of this report.
Other Information
In addition to the basic financial statements and accompanying notes, this report also presents
certain required supplementary information concerning the Village's progress in funding its
obligation to provide pension benefits to its employees.
Required supplementary information can be found on pages 40-42 of this report.
Government -wide Financial Analysis
As noted earlier, net assets may serve over time as a useful indicator of a government's financial
position. In the case of the Village's, assets exceeded liabilities by $32,265,295 at the close of
the most recent fiscal year.
A portion of the Village's net assets, $63,144,843 Or 86.05 %, reflects its investment in capital
assets (e.g., land and equipment). The Village of Key Biscayne uses these capital assets to
provide services to citizens; consequently, these assets are not available for future spending.
Our analysis of the financial statements of the Village begins below. The Statement of Net
Assets and the Statement of Activities report information about the Village's activities that will
help answer questions about the position of the Village. A comparative analysis is provided.
Governmental Activities. Governmental activities decreased the Village of Key Biscayne fund
balance by approximately $95,664. This net overall decrease was attributable to an increase in
property tax revenues due to increased assessed values of Key Biscayne real estate in general and
offset by cash used to construct various components of the Village's Civic Center capital project.
All other governmental activities increased fund balance as follows:
-5-
• Property taxes increased by $1,453,550 (12.8 percent) during the year. Most of this
increase is the product of additional luxury condominium units completed and on the tax
roll for the first time, along with renovated homes with increased assessed values.
• Most departments increased 8 percent due to the Village's salary step program, which in
fiscal year 2004 reflected a 5 percent increase in salaries and a 3 percent increase for a cost
of living increase.
• Debt service remained fairly level compared to the prior year.
• The amount expended to the Village Attorney increased due to involvement with labor
negotiations with the Village's Fire Rescue Department that were unforeseen at budget
preparation time.
For the most part, increases in expenses closely paralleled inflation and growth in the scope of
services.
Net Assets
A summary of the Village's Net Assets is presented in Table A-1 and a summary of the changes
in net assets is presented in Table A-2.
Table A-1
Summary of Net Assets
Governmental Activities Business -type Activities Total
2004 2003 2004 2003 2004 2003
Current assets
Capital assets, net
Total assets
Current liabilities
Noncurrent liabilities
$ 8,635,795 $ 7,412,850 $ 1,603,753 $ 1,392,139 $ 10,239,548 $ 8,804,989
54,533,321 46,299,091 8,611,522 8,885,441 63,144,843 55,184,532
63,169,1 16 53,71 1,941 10,215,275 10,277,580 73,384,391 63,989,521
3,629,268 3,495,250 349,089 20,406 3,978,357 3,515,656
30,297,295 21,994,322 6,843,444 6,843,444 37,140,739 28,837,766
Investment in capital assets,
net of related debt 26,149,714 23,889,001 1,968,238 2,024,755 28,117,952 25,913,756
Restricted 283,180 171,680 283,180 171,680
Unrestricted 2,809,659 4,161,688 1,054,504 1,388,975 3,864,163 5,550,663
Total net assets $ 29,242,553 $ 28,222,369 $ 3,022,742 $ 3,413,730 $ 32,265,295 $ 31,636,099
-6-
Table A-2
Summary of Changes in Net Assets
Governmental Activities Business -type Activities Total
2004 2003 2004 2003 2004 2003
Revenues:
Program revenues:
Charges for services $ 1,287,091 $ 1,297,724 $ 805,629 $ 844,656 $ 2,092,720 $ 2,142,380
Operating grants and contributions 524,736 99,830 - 524,736 99,830
Capital grants and contributions 12,770,711 421,085 - 12,770,711 421,085
General revenues:
Property taxes 2,219,118 11,317,161 2,219,1 18 11,317,161
Utility taxes 677,203 2,251,876 677,203 2,251,876
Franchise taxes 821,883 611,502 - 821,883 611,502
Intergovernmental - 776,869 - 776,869
Investment income and
miscellaneous 237,509 282,847 21,235 22,163 258,744 305,010
Total revenues 18,538,251 17,058,894 826,864 866,819 19,365,115 17,925,713
Expenses:
General government 3,614,636 5,691,379 - 3,614,636 5,691,379
Public safety 9,049,851 9,608,735 - 9,049,851 9,608,735
Parks and recreation 1,013,741 826,695 - 1,013,741 826,695
Public works 1,103,940 963,676 - 1,103,940 963,676
Building, zoning and planning 1,220,180 1,252,012 - 1,220,180 1,252,012
Debt service 1,487,245 1,064,028 - 1,487,245 1,064,028
Stormwater - - 971,081 634,361 971,081 634,361
Solid waste collection - 259,173 273,076 259,173 273,076
Sanitary sewer construction - 15,732 6,288 15,732 6,288
Total expenses 17,489,593 19,406,525 1,245,986 913,725 18,735,579 20,320,250
Change in net assets before transfers 1,048,658 (2,347,631) (419,122) (46,906) 629,536 (2,394,537)
Transfers (28,134) (9,737) 28,134 9,737 -
Change in net assets before transfers 1,020,524 (2,357,368) (390,988) (37,169) 629,536 (2,394,537)
Net assets, beginning 28,222,369 30,579,737 3,413,730 3,450,899 31,636,099 34,030,636
Net assets, ending $ 29,242,893 $ 28,222,369 $ 3,022,742 $ 3,413,730 $ 32,265,635 $ 31,636,099
The government's net assets increased by $629,196 during the current fiscal year. This increase
represents the results of operations for a full 12 -month period with no capital contributions from
outside sources.
Business -type Activities
Business -type activities decreased the Village's net assets by $390,988.
• In fiscal 2004, one of the three business -type activities reflected operational profits.
• The Stormwater Utility Fund reflected an operating loss of $430,188, due mainly to
depreciation expense in the amount of $273,919.
• The Solid Waste Collection Fund reported a profit of $39,200.
• The Sanitary Sewer Construction Fund was dormant awaiting a resumption of construction
activity.
-7-
69%
Revenues & Expenses Governmental Activities
520,000,000
S18,000,000
S 16,000,000
$14,000,000
$12,000,000
$10,000,000
$5,000,000
S6,000,000
54,000,000
$2,000,000
S0
J. o''� ��' a� °�
e c▪ ' ,, `a,
�4' c ,`loo `�� lvar �\`�,�
< • 04
CaQI
a
�'' -Cep ,\"O COcs ,SJ
4t%
Revenues by Source — Governmental Activities
Financial Analysis of the Government's Funds
As noted earlier, the Village of Key Biscayne uses fund accounting to ensure and demonstrate
compliance with finance -related legal requirements.
Governmental funds. The focus of the Village of key Biscayne's governmental funds is to
provide information on near -term inflows, outflows, and balances of spend able resources. Such
information is useful in assessing the Village's financing requirements.
-8-
At the end of the current fiscal year, fund balance of the general fund was $4,976,071, a decrease
of $95,664 in comparison with the prior year. All of this is either reserved or designated for
specific uses: (1) emergencies ($2,500,000), (2) Building Inspection Costs ($275,000), (3)
Compensated Absences ($334,644), (4) Law Enforcement Seizures ($283,180), (5) Special
Disaster Relief ($135,000), (6) Playing Field Acquisitions ($456,403),(7) Working Capital
Reserves ($317,962) , (8) Police/Administration Building Reserve ($25,000), (9) Fire Station
Building Reserve ($25,000), (10) Community Center Equipment Reserve ($50,000), (11) Fire
Vehicles Replacement Reserve ($50,000), and Master Plan Initiatives ($500,000).
The general fund is the chief operating fund of the Village of Key Biscayne. As a measure of the
general fund's liquidity, it may be useful to compare total fund balance to total fund
expenditures. Total fund balance represents 31.3 percent of total general fund expenditures.
A summary of the general fund's condensed balance sheet and statement of revenues,
expenditures and changes in fund balance is presented in Table B-1 and B-2 for September 30,
2004 and 2003, is shown as follows:
Table B-1
Summary of Condensed Balance Sheet
2004 2003
Total assets $ 6,139,310 $ 4,789,294
Total liabilities $ 1,187,122 $ 821,735
Reserved fund balance 4,952,188 3,967,559
Total liabilities and fund balance $ 6,139,310 $ 4,789,294
Table B-2
Summary of Condensed Statement of Revenues,
Expenditures and Changes in Fund Balance
Total revenues
Total expenditures
Excess of revenues over expenditures
General Fund Budgetary Highlights
2004
$ 18,075,882
16,243,868
$ 1,832,014
2003
$ 16,632,613
15,647,703
$ 984,910
There was one difference between the original and final budgeted amounts, as the budget required
one amendment. An eighth paramedic position was added in July 2004 in the amount of $79,766.
There were no supplemental appropriations for the fiscal year ended September 30, 2004.
-9-
Capital Assets
As of September 30, 2004, the Village's investment in capital assets amounted to $28,117,952.
The total increase in capital assets for the fiscal year was as follows:
Major capital asset events during the fiscal year included the following:
• Completion of Grapetree Drive Improvements
• Initiation of a Village Tree Replacement Program
• Completion of a new bus shelter at Harbor Drive and Crandon Blvd.
• Completion of the Village Community Information and Strategy Action Plan
Debt Administration
At September 30, 2004, the Village had bonded debt outstanding of $35,591,892. Of this
amount, $6,430,000 represents bonds secured solely by specified revenue sources (Stormwater
revenue bonds). The remainder is special obligation bonds that are secured by non -ad Valorem
revenues through covenants to budget and appropriate.
The Village's total debt increased by $6,324,116 due to the additional borrowing required to
construct the new community center facility.
Additional information on the Village's long-term debt can be found in note 9 on pages 32-35 of
this report.
Economic Factors and Next Years Budgets and Rates
• The unemployment rate for Miami -Dade County is currently 7.3 percent, which is a
decrease from a rate of 7.4 percent a year ago. This compares unfavorably to the state's
average unemployment rate of 5.1 percent and the national average rate of 6.1 percent. The
Village's average rate remained unchanged at 3.2 percent.
• The occupancy rate of the government's retail rentals and hospitality service industry has
remained stable for the past several years.
• Inflationary trends in the region compare favorably to national indices.
All of these factors were considered in preparing the Village of Key Biscayne's budget for the
2005 fiscal year.
Requests for Information
This financial report is designed to provide a general overview of the Village of Key Biscayne's finances
for all those with an interest in the government's finances. Questions concerning any of the information
provided in this report or requests for additional financial information should be addressed to the Office
of the Village Manager, 88 West McIntyre Street, Key Biscayne, Florida 3314
-10-
BASIC FINANCIAL STATEMENTS
VILLAGE OF KEY BISCAYNE, FLORIDA
STATEMENT OF NET ASSETS
SEPTEMBER 30, 2004
ASSETS
Cash and cash equivalents
Investments
Receivables, net
Interest receivable
Prepaids
Internal balances
Negative net pension obligation
Other assets
Restricted assets:
Cash and cash equivalents
Investments
Capital assets not being depreciated
Capital assets being depreciated, net
Total assets
LIABILITIES
Accounts payable and accrued liabilities
Accrued interest payable
Payable to pension plan
Retainage payable
Unearned revenue
Noncurrent liabilities:
Due within one year
Due in more than one year
Total liabilities
NET ASSETS
Invested in capital assets, net of related debt
Restricted for law enforcement
Unrestricted
Total net assets
Governmental
Activities
$ 6,404,618
782,354
180,642
112,591
382,317
27,687
453,250
292,336
31,935,321
22,598,000
63,169,116
2,390,169
379,548
98,448
756,993
4,110
1,274,526
29,022,769
33,926,563
26,149,714
283,180
2,809,659
$ 29,242,553
Business -
type
Activities Total
$ 448,722 $ 6,853,340
1,040,497 1,040,497
213,960 996,314
13,165 13,165
- 180,642
(112,591) -
- 382,317
- 27,687
463,915
8,147,607
10,215,275
453,250
292,336
32,399,236
30,745,607
73,384,391
349,089 2,739,258
- 379,548
98,448
- 756,993
4,110
222,686 1,497,212
6,620,758 35,643,527
7,192,533 41,119,096
1,768,078 27,917,792
- 283,180
1,254,664 4,064,323
$ 3,022,742 $ 32,265,295
See notes to basic financial statements.
11
VILLAGE OF KEY BISCAYNE, FLORIDA
STATEMENT OF ACTIVITIES
FISCAL YEAR ENDED SEPTEMBER 30, 2004
Functions/Programs
Governmental activities:
General government
Public works
Police
Fire
Parks and recreation
Building, zoning and planning
Interest on long-term debt
Total governmental activities
Business -type activities:
Stormwater
Solid waste
Sanitary sewer
Total business -type activities
Total
Program Revenues
Charges Operating Capital
for Grants and Grants and
Expenses Services Contributions Contributions
$ 3,614,636 $ 961,100 $
1,103,940
4,311,449 197,244
4,738,402 6,505
1,013,741 35,787
1,220,180 86,455
1,487,245
17,489,593 1,287,091
971,081 520,729
259,173 284,900
15,732
1,245,986 805,629
$ 18,735,579 $ 2,092,720 $
General revenues:
Property taxes
Franchise fees based on gross receipts
Utility taxes
Unrestricted intergovernmental revenue
Unrestricted investment earnings
Miscellaneous
Transfers
Total general revenues
Change in net assets
Net assets, beginning
Net assets, ending
Net (Expense) Revenue and
Changes in Net Assets
Business -
Governmental type
Activities Activities
$ - $ (2,653,536) $
524,736 (579,204)
(4,114,205)
(4,731,897)
(977,954)
(1,133,725)
(1,487,245)
524,736 (15,677,766)
- $ 524,736 (15,677,766)
See notes to basic financial statements.
-12-
12,770,711
677,203
2,219,118
821,883
110,562
126,607
(28,134)
16,697,950
1,020,184
28,222,369
$ 29,242,553
(450,352)
25,727
(15,732)
Total
$ (2,653,536)
(579,204)
(4,114,205)
(4,731,897)
(977,954)
(1,133,725)
(1,487,245)
(15,677,766)
(450,352)
25,727
(15,732)
(440,357) (440,357)
(440,357) (16,118,123)
12,770,711
677,203
2,219,118
821,883
21,235 131,797
126,607
28,134
49,369
(390,988)
3,413,730
$ 3,022,742
16,747,319
629,196
31,636,099
$32,265,295
VILLAGE OF KEY BISCAYNE, FLORIDA
BALANCE SHEET
GOVERNMENTAL FUNDS
SEPTEMBER 30, 2004
Special
Revenue Total
Capital Civic (a nonmajor Governmental
General Improvements Center fund) Funds
ASSETS
Cash and cash equivalents
Receivables, net
Due from other funds
Prepaid items
Restricted cash and cash equivalents
Restricted investments
Total assets
LIABILITIES AND
FUND BALANCES
Liabilities:
Accounts payable and
accrued liabilities
Retainage payable
Due to other funds
Deferred revenue
Total liabilities
Fund balances:
Reserved
Unreserved, designated for, reported in:
Designated
Unreserved, undesignated reported in:
Civic center fund
Total fund balances (deficit)
Total liabilities and
fund balances
$4,191,878
728,793
652,813
180,642
92,848
292,336
$ 6,139,310
$ 1,244,756 $ 967,984 $ - $ 6,404,618
- 53,561 782,354
- 99,899 752,712
- - 180,642
- 360,402 453,250
- - 292,336
$ 1,244,756 $ 967,984 $ 513,862 $ 8,865,912
$ 706,135 $ 223,637 $ 1,460,397 $
- 756,993
476,877 115,360 146,332
4,110
1,187,122 338,997 2,363,722
- $ 2,390,169
- 756,993
738,569
4,110
3,889,841
4,677,188 905,759 513,862
275,000 -
(1,395,738)
6,096,809
275,000
(1,395,738)
4,952,188 905,759 (1,395,738) 513,862 4,976,071
$6,139,310 $ 1,244,756 $ 967,984 $ 513,862
Amounts reported for governmental activities in the statement of net assets are different because:
Capital assets used in governmental activities are not financial resources and, therefore,
are not reported in the funds.
A negative net pension obligation (NPO) is not considered to represent a financial
asset and therefore is not reported in the governmental funds
Long-term liabilities, including bonds payable, are not due and payable in the current
period and therefore not reported in the funds
Net assets of governmental activities
54,533,321
382,317
(30,649,156)
$ 29,242,553
See notes to basic financial statements.
VILLAGE OF KEY BISCAYNE, FLORIDA
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
FISCAL YEAR ENDED SEPTEMBER 30, 2004
Revenues:
Property taxes
Utility taxes
Franchise fees
Licenses and permits
Intergovernmental
Charges for services
Interest
Other
Total revenues
Expenditures:
Current:
General government
Fire
Police
Public works
Building, zoning and planning
Parks and recreation
Capital outlay
Debt service:
Principal
Interest and fiscal charges
Total expenditures
Excess (deficiency) of revenues
over expenditures
Other financing sources (uses):
Transfers in
Transfers out
Bonds issued
Total other financing
sources (uses)
Net change in fund balances
Fund balances (deficit), beginning
Fund balances (deficit), ending
General
Special
Revenue
Capital Civic (a nonmajor
Improvements Center fund)
$12,770,711 $
2,219,118
677,203
961,100
1,031,805
325,651
90,294
18,075,882
1,712,899
4,462,601
4,113,946
1,098,250
1,212,290
952,261
1,583,924
1,107,697
12,172
126,947
139,119
$
7,611
$
485
314,814
7,611 315,299
1,251,070 9,413,278
- 27,687
16,243,868 1,251,070 9,440,965
1,832,014
(847,385)
Total
Governmental
Funds
$ 12,770,711
2,219,118
677,203
961,100
1,031,805
325,651
110,562
441,761
18,537,911
- 1,712,899
4,462,601
- 4,113,946
1,098,250
- 1,212,290
- 952,261
10,664,348
- 1,583,924
- 1,135,384
26,935,903
(1,111,951) (9,433,354) 315,299 (8,397,992)
819,251
- 8,330,462
(847,385) 819,251 8,330,462
984,629
3,967,559
$ 4,952,188
- 819,251
- (847,385)
- 8,330,462
(292,700) (1,102,892) 315,299
1,198,459 (292,846) 198,563
$ 905,759 $(1,395,738) $ 513,862
8,302,328
(95,664)
5,071,735
$ 4,976,071
See notes to basic financial statements.
VILLAGE OF KEY BISCAYNE, FLORIDA
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES
FISCAL YEAR ENDED SEPTEMBER 30, 2004
Amounts reported for governmental activities in the statement of activities
(Page 12) are different because:
Net change in fund balances - total governmental funds (Page 14) $ (95,664)
Governmental funds report capital outlays as expenditures. However, in the
statement of activities, the cost of those assets is allocated over their
estimated useful lives and reported as depreciation expense. This is the
amount by which capital outlays exceeded depreciation in the current period.
The details of the difference are as follows:
Capital outlay
Depreciation expense
Net adjustment
The issuance of long-term debt provides current financial resources to
governmental funds, while the repayment of the principal of long-term debt
consumes the current financial resources of governmental funds.
$ 9,075,263
(862,749)
The detail of the differences are as follows:
Debt payments 1,575,659
Debt issuance cost 27,687
2002 revenue bonds issued (8,330,462)
Net adjustment
Some expenses reported in the statement of activities do not require current
financial resources and, therefore, are not reported as expenditures in
governmental funds.
The details of the difference is:
Compensated absences (46,452)
Accrued interest expense (379,548)
Negative net pension obligation 56,450
8,212,514
(6,727,116)
(369,550)
Change in net assets of governmental activities (Page 12) $1,020,184
See notes to basic financial statements.
VILLAGE OF KEY BISCAYNE, FLORIDA
STATEMENT OF NET ASSETS
PROPRIETARY FUNDS
SEPTEMBER 30, 2004
Business -type Activities -
Enterprise Funds
Stormwater
Utility Nonmajor
System Funds Totals
ASSETS
Current assets:
Cash and cash equivalents
Investments
Accounts receivables, net
Interest receivable
Due from other fund
Total current assets
Noncurrent assets:
Capital assets not being depreciated
Capital assets being depreciated, net
Total noncurrent assets
Total assets
LIABILITIES
Current liabilities:
Accounts payable and accrued liabilities
Due to other funds
Current portion of revenue bonds payable
Total current liabilities
Noncurrent liabilities:
Revenue bonds
Revolving loan
Total noncurrent liabilities
Total liabilities
NET ASSETS
Invested in capital assets, net of related debt
Unrestricted
Total net assets
$ 368,854 $ 79,868
1,040,497
96,883
13,165
$ 448,722
- 1,040,497
117,077 213,960
- 13,165
24,011 24,011
1,519,399 220,956 1,740,355
- 463,915
8,147,607
463,915
8,147,607
8,147,607 463,915 8,611,522
9,667,006 684,871 10,351,877
344,197
136,602
205,000
4,892 349,089
- 136,602
17,686 222,686
685,799 22,578 708,377
6,225,000
6,225,000
395,758 395,758
6,225,000 395,758 6,620,758
6,910,799 418,336 7,329,135
1,717,607 50,471 1,768,078
1,038,600 216,064 1,254,664
$ 2,756,207 $ 266,535 $ 3,022,742
See notes to basic financial statements.
VILLAGE OF KEY BISCAYNE, FLORIDA
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS
PROPRIETARY FUNDS
FISCAL YEAR ENDED SEPTEMBER 30, 2004
Business -type Activities -
Enterprise Funds
Stormwater
Utility Nonmajor
System Funds Totals
Operating revenues:
Charges for services $ 520,729 $ 284,900 $ 805,629
Operating expenses:
General and administrative 165,317 259,173 424,490
Depreciation 273,919 273,919
Total operating expenses 439,236 259,173 698,409
Operating income 81,493 25,727 107,220
Non -operating revenues (expenses):
Interest income 20,164 1,071 21,235
Interest expense (531,845) (15,732) (547,577)
Total non -operating revenues (expenses) (511,681) (14,661) (526,342)
Income (loss) before transfers
Transfers in
Change in net assets
Net assets, beginning
Net assets, ending
(430,188) 11,066 (419,122)
- 28,134
28,134
(430,188) 39,200 (390,988)
3,186,395 227,335 3,413,730
$ 2,756,207 $ 266,535 $ 3,022,742
See notes to basic financial statements.
VILLAGE OF KEY BISCAYNE, FLORIDA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FISCAL YEAR ENDED SEPTEMBER 30, 2004
Business -type Activities -
Enterprise Funds
Stormwater
Utility Nonmajor
System Funds Totals
Cash flows from operating activities:
Receipts from customers and users
Payments to suppliers
Net cash provided by operating activities
Cash flows from non -capital financing activities:
Transfers from other funds
Net cash provided by non -capital financing activities
Cash flows from capital and related financing activities:
Net payments from revolving loan
Interest paid on capital debt
Net cash used by capital and related financing activities
Cash flows from investing activities:
Purchase of investments
Interest received
Net cash provided by investing activities
Net increase in cash and cash equivalents
Cash and cash equivalents, beginning
Cash and cash equivalents, ending
Reconciliation of operating income to net cash
provided by operating activities:
Operating income
Adjustments to reconcile operating income to net cash
provided by operating activities:
Depreciation
Changes in operating assets and liabilities:
(Increase) decrease in:
Accounts receivable
Interest receivable
Due from other funds
Increase (decrease) in:
Accounts payable
Due to other funds
Total adjustments
Net cash provided by operating activities
$1,029,037 $ 267,831 $1,296,868
(213,050) (257,652) (470,702)
815,987 10,179 826,166
- 28,134
- 28,134
28,134
28,134
- (17,242) (17,242)
(531,845) (15,732) (547,577)
(531,845) (32,974) (564,819)
(16,568) - (16,568)
20,164 1,070 21,234
3,596
1,070 4,666
287,738 6,409 294,147
81,116 73,459 154,575
$ 368,854 $ 79,868 $ 448,722
$ 81,493 $ 25,727 $ 107,220
273,919
- 273,919
4,226 3,571 7,797
(2,108) - (2,108)
- (24,011) (24,011)
341,033
117,424
734,494
$ 815,987
4,892 345,925
- 117,424
(15,548) 718,946
$ 10,179 $ 826,166
See notes to basic financial statements.
VILLAGE OF KEY BISCAYNE, FLORIDA
STATEMENT OF FIDUCIARY NET ASSETS
PENSION TRUST FUND
SEPTEMBER 30, 2004
ASSETS
Contributions receivable $ 395,544
Investments, at fair value:
Money market funds 124,331
Common stocks 1,974,444
Mutual funds 1,993,035
Total investments 4,091,810
Total assets
LIABILITIES AND NET ASSETS
Liabilities
Net assets held in trust for pension benefits
4,487,354
$ 4,487,354
See notes to basic financial statements.
VILLAGE OF KEY BISCAYNE, FLORIDA
STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS
PENSION TRUST FUND
FISCAL YEAR ENDED SEPTEMBER 30, 2004
ADDITIONS
Contributions:
Plan members
Village
State
Total contributions
Investment earnings:
Net increase in the fair value of investments
Interest and dividends
Total investments earnings
Total additions
DEDUCTIONS
Benefits paid
Administrative expenses
Total deductions
Change in net assets
Net assets, beginning
Net assets, ending
$ 509,285
477,605
262,745
1,249,635
333,955
12,397
346,352
1,595,987
357,625
50,764
408,389
1,187,598
3,299,756
$4,487,354
See notes to basic financial statements.
NOTES TO BASIC FINANCIAL STATEMENTS
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FISCAL YEAR ENDED SEPTEMBER 30, 2004
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 financial statements of the Village have been prepared in conformity with accounting
principles generally accepted in the United States (GAAP) as applied to governmental units. The
Governmental Accounting Standards Board (GASB) 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:
A. Financial Reporting Entity
The financial statements were prepared in accordance with GASB Statements related to 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.
B. Government -Wide and Fund Financial Statements
The government -wide financial statements (i.e., the statement of net assets and the statement
of activities) report information on all of the non -fiduciary activities of the Village. For the
most part, the effect of interfund activity has been removed from these statements.
Governmental activities, which normally are supported by taxes and intergovernmental
revenues, are reported separately from business -type activities, which rely to a significant
extent on fees and charges for support.
-21-
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
B. Government -Wide and Fund Financial Statements (Continued)
The statement of activities demonstrates the degree to which the direct expenses of a given
function or segment are offset by program revenues. Direct expenses are those that are
clearly identifiable with a specific function or segment. Program revenues include 1) charges
to customers or applicants who purchase, use, or directly benefit from goods, services, or
privileges provided by a given function or segment and 2) grants and contributions that are
restricted to meeting the operational or capital requirements of a particular function or
segment. Taxes and other items not properly included among program revenues are reported
instead as general revenues.
Separate financial statements are provided for governmental funds, proprietary funds, and
fiduciary funds, even though the latter are excluded from the government -wide financial
statements. Major individual governmental funds and major individual enterprise funds are
reported as separate columns in the fund financial statements. All remaining nonmajor
governmental funds are aggregated and reported as other governmental funds. The Village
has only one nonmajor governmental fund (the Special Revenue Fund).
C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation
The government -wide financial statements are reported using the economic resources
measurement focus and the accrual basis of accounting, as are the proprietary fund and
fiduciary fund financial statements. Revenues are recorded when earned and expenses are
recorded when a liability is incurred, regardless of the timing of related cash flows. Property
taxes are recognized as revenues in the year for which they are levied. Grants and similar
items are recognized as revenue as soon as all eligibility requirements imposed by the
provider have been met.
Governmental fund financial statements are reported using the current financial resources
measurement focus and the modified accrual basis of accounting. Revenues are recognized
as soon as they are both measurable and available. Revenues are considered to be available
when they are collectible within the current period or soon enough thereafter to pay liabilities
of the current period. For this purpose, the Village considers revenues to be available if they
are collected within 60 days of the end of the current fiscal period. Expenditures are recorded
when a liability is incurred, as under accrual accounting. However, debt service expenditures,
as well as expenditures related to compensated absences and claims and judgments, are
recorded only when payment is due.
Property taxes, franchise fees and other taxes, licenses, and interest associated with the
current fiscal period are all considered to be susceptible to accrual and so have been
recognized as revenues of the current fiscal period. Revenues for expenditure driven grants
are recognized when the qualifying expenditures are incurred. All other revenue items are
considered to be measurable and available only when cash is received by the Village.
-22-
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation
(Continued)
The Village reports the following major governmental funds:
The General Fund is the Village's primary operating fund. It accounts for all financial
resources of the general government, except those required to be accounted for in another
fund.
The Capital Improvement Fund accounts for the acquisition or construction of various
major capital projects.
The Civic Center Fund accounts for the construction of the Village's civic center which
includes administrative offices, fire and police facilities and a community center.
The Village also reports the following nonmajor government fund:
The Special Revenue Fund accounts for the revenues received from the transportation
surtax and expenditures for related transportation costs.
The Village reports the following major proprietary fund in the basic financial statements:
The Stormwater Utility Fund accounts for the construction and maintenance of the
Village's stormwater system.
Additionally, the Village reports the following fund types:
The Pension Trust Fund is used to account for the Village's single -employer defined
benefit pension plan covering substantially all of its police officers and firefighters.
Private -sector standards of accounting and financial reporting issued prior to December 1,
1989, generally are followed in both the government -wide and proprietary fund financial
statements to the extent that those standards do not conflict with or contradict guidance of the
Governmental Accounting Standards Board. The Village has the option of following
subsequent private -sector guidance for their business -type activities and enterprise funds,
subject to this same limitation. The Village has elected not to follow subsequent private -
sector guidance.
As a general rule, the effect of interfund activity has been eliminated from the government -
wide financial statements. Exceptions to this general rule are payments -in -lieu of taxes and
other charges between the Village's various utility functions and various other functions of
the Village. Elimination of these charges would distort the direct costs and program revenues
reported for the various functions concerned.
-23-
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation
(Continued)
Amounts reported as program revenues include 1) charges to customers or applicants for
goods, services, or privileges provided, 2) operating grants and contributions, and 3) capital
grants and contributions. Internally dedicated resources are reported as general revenues
rather than as program revenues. Likewise, general revenues include all taxes.
Proprietary funds distinguish operating revenues and expenses from non -operating items.
Operating revenues and expenses generally result from providing services and producing and
delivering goods in connection with a proprietary fund's principal ongoing operations. The
principal operating revenues of the Village's stormwater utility, solid waste services and
sanitary sewer construction funds are charges to customers for services. Operating expenses
for enterprise funds include the costs of services, administrative expenses, and depreciation
on capital assets. All revenues and expenses not meeting this definition are reported as
nonoperating revenues and expenses.
When both restricted and unrestricted resources are available for use, it is the Village's policy
to use restricted resources first, then unrestricted resources as they are needed.
D. Assets, Liabilities, and Net Assets or Equity
1. Deposits and Investments
The Village's cash and cash equivalents include cash on hand, time and demand deposits,
and short-term investments with original maturities of three months or less from the date
of acquisition and investments with the State Board Investment Pool.
Short-term investments, except the State Board Investment Pool, are reported at cost,
which approximates fair value. The Investment Pool is recorded at its value of the pool
shares (2A-7 Pool) which is fair value.
The nature of investments is governed by the provisions of Florida Statutes Section 218.
Under this statute, authorized investments are limited, unless otherwise authorized by law
or ordinance, to the local government surplus funds trust fund, money market funds, direct
or unconditionally guaranteed obligations of the United States Government, obligations of
certain governmental agencies, interest bearing time deposits or savings accounts.
2. Receivables and Payables
Activity between funds that are representative of lending/borrowing arrangements
outstanding at the end of the fiscal year are referred to as "due to/from other funds". Any
residual balances outstanding between the governmental activities and business -type
activities are reported in the government -wide financial statements as "internal balances".
�A
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
D. Assets, Liabilities, and Net Assets or Equity (Continued)
3. Capital assets
Capital assets, which include property, plant and equipment, and certain infrastructure assets
(e.g., utility plant, roads, bridges, sidewalks, and similar items), are reported in the applicable
governmental or business -type activities columns in the government -wide financial
statements. Capital assets are defined by the Village as assets with an initial, individual cost
of more than $750 and an estimated useful life in excess of one year. Such assets are
recorded at historical cost or estimated historical cost if purchased or constructed. Donated
capital assets are recorded at estimated fair market value at the date of donation.
The costs of normal maintenance and repairs that do not add to the value of the asset or
materially extend asset lives are not capitalized. Major outlays for capital assets and
improvements are capitalized as projects are constructed. Interest incurred during the
construction phase of capital assets of business -type activities is included as part of the
capitalized value of the asset constructed. No such costs were capitalized in 2004.
Capital assets of the Village are depreciated using the straight line method over the
following estimated useful lives:
Assets Years
Buildings 25-50
Improvements other than buildings 10-50
Furniture, fixtures and equipment 10
Stormwater utility system 50
4. Compensated absences
It is the Village's policy to permit employees to accumulate within certain limits, earned
but unused vacation time and sick leave, which will be paid to employees upon separation
from Village service. All vacation and sick leave pay is accrued when incurred in the
government -wide and proprietary fund financial statements. In the governmental funds, a
liability is recorded only for vacation and sick leave payouts for employee separations that
occurred prior to September 30, 2004 and were subsequently paid with current available
financial resources.
5. Long-term obligations
In the government -wide financial statements, and proprietary fund types in the fund financial
statements, long-term debt and other long-term obligations are reported as liabilities in the
applicable governmental activities, business -type activities, or proprietary fund type
statement of net assets. Bond premiums and discounts, as well as issuance costs, are deferred
and amortized over the life of the bonds using the straight-line amortization method. The
results of using this method do not differ significantly from the effective interest method.
Bonds payable are reported net of the applicable bond premium or discount.
-25-
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
D. Assets, Liabilities, and Net Assets or Equity (Continued)
5. Long-term obligations (Continued)
In the fund financial statements, governmental fund types recognize bond premiums and
discounts, as well as bond issuance costs, during the current period. The face amount of
debt issued is reported as other financing sources. Premiums received on debt issuances
are reported as other financing sources while discounts on debt issuances are reported as
other financing uses. Issuance costs, whether or not withheld from the actual debt
proceeds received, are reported as debt service expenditures.
6. 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 of assets, liabilities, disclosures of contingent liabilities, revenues and
expenditures/expenses reported in the financial statements and accompanying notes.
These estimates include assessing the collectibility of receivables, the realization of
pension obligations and the useful lives of capital assets. Although these estimates as well
as all 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.
7. Fund Equity
In the fund financial statements, governmental funds report reservations of fund balance
for amounts that are not available for appropriation or are legally restricted by outside
parties for use for a specific purpose. Designations of fund balance, where noted,
represent tentative management plans that are subject to change.
NOTE 2. EXPLANATION OF CERTAIN DIFFERENCES BETWEEN THE GOVERNMENTAL
FUND BALANCE SHEET AND THE GOVERNMENT -WIDE STATEMENT OF NET
ASSETS
The governmental fund balance sheet includes a reconciliation between fund balance — total
governmental funds and net assets — governmental activities as reported in the government -wide
statement of net assets. One element of that reconciliation explains that long-term liabilities,
including bonds payable, are not due and payable in the current period and therefore are not
reported in the funds. The details of this $30,649,156 difference are as follows:
Bonds payable $29,164,893
Debt issuance costs (27,687)
Compensated absences 1,132,402
Accrued interest payable 379,548
$ 30,649,156
-26-
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 3. EXCESS OF EXPENDITURES OVER APPROPRIATIONS
The classification detail at which expenditures may not legally exceed appropriations is at the
department level. For the year ended September 30, 2004, expenditures exceeded appropriations
in the Village Attorney department by $22,402, in the Police Department by $375,260 and in the
Public Works Department by $44,932, as presented in the budgetary comparison schedule
following the notes to the basic financial statements. 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 2004, it was determined that no function resulted in a deficit situation,
except for the Police Department.
NOTE 4. DEPOSITS AND INVESTMENTS
Deposits
In addition to insurance provided by the Federal Depository Insurance Corporation, all
deposits are held in banking institutions approved by the State Treasurer of the State of
Florida to hold public funds. Under Florida Statutes Chapter 280, Florida Security for Public
Deposits Act, the State Treasurer requires all Florida qualified public depositories to deposit
with the Treasurer or another banking institution eligible collateral. In the event of a failure
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.
-77-
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 4. DEPOSITS AND INVESTMENTS (Continued)
Investments (Continued)
The Village's investment balances, which are carried at fair value, are 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
Common stocks
$ 2,732,933
1,974,444
4,707,377
Investments not subject to categorization:
Mutual funds 1,993,035
Money funds 124,331
State Board of Administration investment pool 1,404,970
$ 8,229,713
A reconciliation of cash and investments as shown on the statement of net assets and fiduciary
net assets is as follows:
Deposits (including cash and certificates of deposit) $ 4,917,460
Investments 8,229,713
Total deposits and investments $ 13,147,173
Cash and cash equivalents, primary government $ 7,722,531
Investments, primary government 1,332,832
Total primary government 9,055,363
Investments, fiduciary funds
Grand total
4,091,810
$13,147,173
'IQ
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 5. RECEIVABLES
Receivables as of September 30, 2004 for the Village's individual major funds, nonmajor funds,
internal service funds and fiduciary funds in the aggregate, including the allowances for
uncollectible accounts, are as follows:
Customers billed
Contributions
Property taxes
Interest
Intergovernmental
Other
Gross receivables
Less allowance for uncollectibles
Net total receivables
NOTE 6. PROPERTY TAXES
Storm -
General water
$ $ 96,883
Nonmajor
Funds
Pension
Trust
Fund Total
$ 136,964 $ -
- 395,544
63,655 - -
13,165
601,252 - 53,561
63,886 -
728,793 110,048 190,525 395,544
- (19,887) -
$ 728,793 $110,048 $170,638 $ 395,544
$ 233,847
395,544
63,655
13,165
654,813
63,886
1,424,910
(19,887)
$ 1,405,023
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, 2004,
there were no material delinquent taxes.
-29-
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 7. INTERFUND RECEIVABLES, PAYABLES, AND TRANSFERS
The composition of interfund balances as of September 30, 2004 is as follows:
Due from/to other funds:
Receivable Fund Payable Fund Amount
General Storm water utility $ 136,602
Capital Improvement 115,360
Civic Center 146,332
Nonmajor governmental General Fund 99,899
Nonmajor business -type 24,011
Pension trust 98,448
$ 620,652
The outstanding balances between funds result mainly from the time lag between the dates
that (1) interfund goods and services are provided or reimbursable expenditures occur, (2)
transactions are recorded in the accounting system, and (3) payments between funds are
made.
Interfund transfers:
Transfers In
Capital Nonmaj or
Improvement Business -type Total
Transfers out:
General fund
$ 819,251 $ 28,134 $ 847,385
Transfers are used to move unrestricted general fund revenues to finance various capital
projects in accordance with budgetary authorizations.
-'3 0-
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 8. CAPITAL ASSETS
Capital asset activity for the year ended September 30, 2004 was as follows:
Governmental activities:
Capital assets, not being depreciated:
Land
Construction in progress
Total capital assets, not being depreciated
Capital assets, being depreciated:
Buildings
Improvements other than buildings
Furniture, fixtures and equipment
Total capital assets, being depreciated
Less accumulated depreciation for:
Buildings
Improvements other than buildings
Furniture, fixtures and equipment
Total accumulated depreciation
Total capital assets, being depreciated, net
Governmental activities capital assets, net
Business -type activities:
Capital assets, not being depreciated:
Construction in progress
Total capital assets, not being depreciated
Capital assets, being depreciated:
Stormwater utility system
Total capital assets, being depreciated
Less accumulated depreciation for:
Stormwater utility system
Total accumulated depreciation
Total capital assets, being depreciated, net
Business -type activities capital assets, net
Beginning
Balance
Ending
Increases Decreases Balance
$21,833,837 $ - $ - $21,833,837
2,085,260 8,441,394 (425,170) 10,101,484
23,919,097 8,441,394 (425,170) 31,935,321
12,453,955 63,256
10,994,376 275,022
2,981,629 742,477
(304,277)
12,517,211
11,269,398
3,419,829
26,429,960 1,080,755 (304,277) 27,206,438
(254,004)
(2,199,260)
(1,596,702)
(4,049,966)
22,379,994
$ 46,299,091
(255,353)
(234,426)
(372,970)
304,277
(509,357)
(2,433,686)
(1,665,395)
(862,749) 304,277 (4,608,438)
218,006
22,598,000
$ 8,659,400 $ (425,170) $ 54,533,321
$ 463,915 $
463,915
10,056,660
10,056,660
(1,635,134) (273,919)
(1,635,134) (273,919)
8,421,526 (273,919)
$ 8,885,441 $ (273,919) $
$ 463,915
463,915
10,056,660
10,056,660
(1,909,053)
(1,909,053)
8,147,607
$ 8,611,522
-11-
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 8. CAPITAL ASSETS (Continued)
Depreciation expense was charged as functions/programs of the primary government as follows:
Governmental activities:
General government $ 365,113
Police 181,105
Fire 241,469
Public works 5,690
Building, zoning and planning 7,892
Parks 61,480
Total depreciation expenses - governmental activities $ 862,749
Business -type activities:
Stormwater $ 273,919
NOTE 9. LONG-TERM DEBT
The following is a summary of changes in long-term liabilities of the Village for governmental
activities for the year ended September 30, 2004:
Beginning Ending Due Within
Balance Additions Reductions Balance One Year
Governmental Activities
Bonds payable:
Land acquisition revenue bonds, Series 1993
Land acquisition and capital improvement
revenue bonds, Series 1999
Land acquisition and capital improvement
revenue bonds, Series 2000
Capital improvement bonds, Series 2002
Total bonds payable
Other liabilities:
Compensated absences
Total other liabilities
Governmental activities long-term liabilities
Land Acquisition Revenue Bonds
$ 1,105,000 $ - $ (1,105,000) $ - $
9,645,000 - (375,000) 9,270,000 390,000
10,000,000 - - 10,000,000 380,000
1,660,090 8,330,462 (95,660) 9,894,892 391,286
22,410,090 8,330,462 (1,575,660) 29,164,892 1,161,286
1,085,951 82,770 (36,318) 1,132,403 113,240
1,085,951 82,770 (36,318) 1,132,403 113,240
$23,496,041 $8,413,232 $(1,611,978) $30,297,295 $ 1,274,526
On December 14, 1993, 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 bonds matured on December 15, 2003 and were paid in full in fiscal year
ended September 30, 2004. The Village pledged public service tax revenues to secure
payment of the principal and interest on the bonds. The bonds were due in annual principal
installments.
11
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 9. LONG-TERM DEBT (Continued)
Land Acquisition and Capital Improvement Revenue Bonds
On July 23, 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 bonds mature on July 23,
2019. 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. Interest
accrues at 4.715% per annum.
Debt service requirements to maturity are as follows:
Principal Interest Total
Fiscal year ending September 30:
2005
2006
2007
2008
2009
2010-2014
2015-2019
2020
Capital Improvement Revenue Bonds
$ 390,000 $ 427,886 $ 817,886
410,000 409,026 819,026
430,000 389,223 819,223
455,000 368,359 823,359
475,000 346,435 821,435
2,765,000 2,415,125 5,180,125
3,530,000 624,266 4,154,266
815,000 19,214 834,214
$ 9,270,000 $4,999,534 $14,269,534
On July 11, 2000, the Village issued a second series of $10,000,000 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 bonds mature on July 11,
2020. 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. Interest
accrues at 5.24% per annum.
Debt service requirements to maturity are as follows:
Fiscal year ending September 30:
2005
2006
2007
2008
2009
2010-2014
2015-2019
2020-2021
Principal Interest
$ 380,000
400,000
420,000
440,000
465,000
2,715,000
3,505,000
1,675,000
$10,000,000
$ 514,044
493,608
472,124
449,592
425,881
1,727,235
916,869
88,949
$ 5,088,302
Total
$ 894,044
893,608
892,124
889,592
890,881
4,442,235
4,421,869
1,763,949
$15,088,302
-33-
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 9. LONG-TERM DEBT (Continued)
Capital Improvement Revenue Bonds
On November 1, 2002, the Village issued Capital Improvement Revenue Bonds, Series
2002. The issuance was established similar to bond anticipation notes where the principal
amount is the lesser of $9,987,551 or the advances made under the bond. Only the amount
advanced becomes an obligation of the Village. The entire $9,987,551 is expected to be
advanced as the civic center project will be near completion. As of September 30, 2004,
$9,891,892 had been drawn. Therefore, we have presented the debt service amortization
schedule for the entire amount of the bonds as this provides relevant data on the Village's
obligation. The bonds mature on November 1, 2022. Interest is due quarterly at a rate of
3.95% up to November 1, 2012. From November 1, 2012 to maturity, the interest rate will
become a variable rate based on certain indices.
Debt service to maturity is as follows:
Principal Interest Total
Fiscal year ending September 30:
2005 $ 391,286 $ 349,901 $ 741,187
2006 405,523 335,653 741,176
2007 420,279 320,898 741,177
2008 435,571 305,605 741,176
2009 451,420 289,756 741,176
2010-2014 2,515,767 1,190,117 3,705,884
2015-2019 3,008,003 697,879 3,705,882
2020-2022 2,264,043 144,780 2,408,823
$ 9,891,892 $3,634,589 $13,526,481
Subsequent Debt Issuance
On December 12, 2004, the Village issued $2,800,000 of capital improvement and land
acquisition revenue bonds, Series 2004 for the purpose of completing the road construction
associated with the new administration, fire and community center buildings.
The following is a summary of changes in long-term liabilities of the Village for business -
type activities for the year ended September 30, 2004:
Due
Beginning Ending Within
Balance Additions Reductions Balance One Year
Business -type Activities
Bonds and loan payable:
Stormwater utility revenue bonds $ 6,430,000 $ $ - $ 6,430,000 $ 205,000
Revolving loan 430,686 (17,242) 413,444 17,686
Total bonds and loan payable 6,860,686 (17,242) 6,843,444 222,686
Business -type activities:
Long-term liabilities $6,860,686 $ - $ (17,242) $6,843,444 $222,686
2d
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 9. LONG-TERM DEBT (Continued)
Stormwater Utility Revenue Bonds
On January 26, 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 bonds mature on January 26, 2019. 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 1St. Interest accrues at 4.13%
per annum.
Debt service requirements to maturity are as follows:
Principal Interest Total
Fiscal year ending September 30:
2005 $ 205,000 $ 265,558 $ 470,558
2006 215,000 257,093 472,093
2007 225,000 248,213 473,213
2008 235,000 238,921 473,921
2009 350,000 229,215 579,215
2010-2014 2,025,000 914,795 2,939,795
2015-2019 2,580,000 453,268 3,033,268
2020 595,000 24,574 619,574
$6,430,000 $2,631,635 $9,061,635
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, 2004 is $413,444.
Principal Interest Total
Fiscal year ending September 30:
2005 $ 17,686 $ 10,448 $ 28,134
2006 18,142 9,993 28,135
2007 18,609 9,525 28,134
2008 19,088 9,046 28,134
2009 19,580 8,554 28,134
2010-2014 105,732 34,937 140,669
2015-2019 120,074 20,597 140,671
2020-2022 94,533 4,854 99,387
$413,444 $ 107,954 $521,398
-35-
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 10. COMMITMENTS AND CONTINGENCIES
Construction Commitments
As of September 30, 2004, the Village had outstanding construction commitments of
approximately $2,879,534 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.
Grants Contingency
Federal and State programs in which the Village participates are subject to audit by grantor
agencies. Any disallowed claims, including amounts already collected, may constitute a
liability of the applicable funds. 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 11. RESERVED/DESIGNATED FUND BALANCES
As of September 30, 2004, 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 services 283,180
Compensated absences 334,644
Police/Administration building maintenance 25,000
Fire Station building maintenance 25,000
Community Center equipment 50,000
Master Plan initiatives 500,000
Fire vehicle replacements 50,000
Playing fields 456,402
Emergencies 2,500,000
Working capital 317,962
$ 4,677,188
zA
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 11. RESERVED/DESIGNATED FUND BALANCES (Continued)
Capital improvements fund:
Capital projects $ 905,759
Special revenue fund:
Transportation $ 513,862
Designated Fund Balances
General fund:
Inspector fees
Deficit Fund Equity
$ 275,000
The Civic Center Capital Projects Fund has a deficit fund balance of $1,395,738 which will
be funded from the Capital Improvements Fund and/or the General Fund.
NOTE 12. 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 13), were no longer eligible to
contribute to the 401(a) plan. Employer contributions for the fiscal year ended September 30,
2004 were $327,098 while the employee contributions were $105,273. Amendments to the Plan
must be authorized by the Village Council.
NOTE 13. 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, 2003. The PERS
does not issue a stand-alone financial report for the Plan.
Under this plan, all full-time police officers and firefighters employed by the Village are eligible
to participate. The monthly retirement benefit is equal to 3% 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.
-17-
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 13. DEFINED BENEFIT PENSION PLAN (Continued)
Plan Description (Continued)
Members are vested after 5 years of service. Vested employees may retire at the earlier of age
55 and the completion of five years of credited service or the age of 52 and the completion of
25 years of credited service.
Administrative costs of the plan are financed through investment earnings. Benefits are
recorded when paid.
At October 1, 2003 (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
9
Current employees:
Vested 30
Non -vested 31
Total 61
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, 2004 was 10.5%. 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.
Annual Pension Cost and Net Pension Obligation
The annual pension cost and net pension obligation (asset) for the current year was as
follows:
Annual required contribution
Interest on net pension obligation
Adjustment to annual required contribution
Annual pension cost
Contributions made
Increase in net pension obligation (asset)
Net pension obligation, beginning of year
Net pension obligation, end of year
$ 515,437
(8,414)
10,692
517,715
574,165
(56,450)
(325,867)
$ (382,317)
-3R-
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 13. DEFINED BENEFIT PENSION PLAN (Continued)
Annual Pension Cost and Net Pension Obligation (Continued)
The annual required contribution for the current year was determined as part of the October 1,
2003 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
Annual Percentage Net Pension
Fiscal Year Pension of APC Obligation
Ended Cost (APC) Contributed (Asset)
9/30/2002 $ 381,591 112.4% $ (192,047)
9/30/2003 465,562 129.0% (325,867)
9/30/2004 517,715 110.9% (382,317)
-39-
REQUIRED SUPPLEMENTARY INFORMATION
VILLAGE OF KEY BISCAYNE, FLORIDA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE
GENERAL FUND
FISCAL YEAR ENDED SEPTEMBER 30, 2004
Revenues:
Property taxes
Utility taxes
Franchise fees
Licenses and permits
Intergovernmental
Charges for services
Grants
Interest
Total revenues
Expenditures:
Current:
General government:
Elected officials
Village Clerk
Administration
Village Attorney
Total general government
Public safety:
Police
Fire
Total public safety
Public works
Building, zoning and planning
Parks and recreation
Debt service:
Principal
Interest and fiscal charges
Total expenditures
Excess of revenues over expenditures
Other financing uses:
Appropriation of prior years' fund balance
Transfers out
Total other financing uses
Net change in fund balances
Budgeted Amounts
Original Final
$12,541,880
2,210,300
611,000
957,358
981,500
249,262
7,500
75,000
17,633,800
$ 12,541,880
2,210,300
611,000
957,358
981,500
249,262
7,500
75,000
Actual
Amounts
$ 12,770,711
2,219,118
677,203
961,100
1,031,805
325,651
Variance
with
Final
Budget -
Positive
(Negative)
$ 228,831
8,818
66,203
3,742
50,305
76,389
(7,500)
90,294 15,294
17,633,800 18,075,882 442,082
335,897 335,897 193,839 142,058
345,764 345,764 287,175 58,589
1,039,500 1,039,500 876,484 163,016
333,000 333,000 355,401 (22,401)
2,054,161 2,054,161 1,712,899 341,262
3,699,136 3,699,136 4,113,946 (414,810)
4,378,749 4,378,749 4,462,601 (83,852)
8,077,885 8,077,885 8,576,547 (498,662)
1,053,695 1,053,695 1,098,250 (44,555)
1,300,060 1,300,060 1,212,290 87,770
1,086,961 1,086,961 952,261 134,700
1,693,912 1,693,912 1,583,924 109,988
1,452,237 1,452,237 1,107,697 344,540
16,718,911 16,718,911 16,243,868 475,043
914,889 914,889 1,832,014 917,125
(95,638) (95,638) - 95,638
(819,251) (819,251) (847,385) (28,134)
(914,889) (914,889) (847,385) 67,504
$ - $ - $ 984,629 $ 984,629
See notes to budgetary comparison schedule.
A n
VILLAGE OF KEY BISCAYNE, FLORIDA
REQUIRED SUPPLEMENTARY INFORMATION
NOTE TO BUDGETARY COMPARISON SCHEDULE
FISCAL YEAR ENDED SEPTEMBER 30, 2004
NOTE 1. BUDGETS AND BUDGETARY ACCOUNTING
An annual appropriated budget is prepared for the general fund.
The Village follows these procedures in establishing the budgetary data reflected in the financial
statements:
(a) The Village Manager submits to the Council a proposed operating budget for the ensuing
fiscal year. The operating budget includes appropriations and the means of financing them
with an explanation regarding each expenditure that is not of a routine nature.
(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,
2004, there were no supplemental appropriations.
(e) Formal budgetary integration is employed as a management control device for the general
fund.
(0 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.
(h) Budget amendments were not significant in relation to the original appropriations.
Al
VILLAGE OF KEY BISCAYNE, FLORIDA
REQUIRED SUPPLEMENTARY INFORMATION
PENSION TRUST FUND
SCHEDULE OF EMPLOYER CONTRIBUTIONS
Year Annual
Ended Required Percentage
September 30, Contribution Contributed
1999 $ 1,497 2173%
2000 2,626 0%
2001 45,199 296%
2002 377,777 88%
2003 465,562 100%
2004 515,437 111%
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 10/1/03
Actuarial cost method Aggregate
Amortization method N/A
Remaining amortization N/A
Asset valuation method 5 year Smoothed 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 STATEMENTS
NONMAJOR 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.
• 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
COMBINING BALANCE SHEET
NONMAJOR ENTERPRISE FUNDS
SEPTEMBER 30, 2004
Total
Sanitary Nonmajor
Solid Sewer Enterprise
Waste Construction Funds
ASSETS
Current assets:
Cash and cash equivalents $ 79,868 $ - $ 79,868
Accounts receivables, net 117,077 - 117,077
Due form other fund 24,011 - 24,011
Total current assets 220,956 - 220,956
Noncurrent assets:
Capital assets not being depreciated
463,915 463,915
Total noncurrent assets - 463,915 463,915
Total assets 220,956 463,915 684,871
LIABILITIES
Current liabilities:
Accounts payable and accrued liabilities 52 4,840 4,892
Current portion of revolving loan
Noncurrent liabilities:
Revolving loan
Total liabilities
17,686 17,686
- 395,758 395,758
52 418,284 418,336
NET ASSETS
Invested in capital assets, net of related debt -
Unrestricted 220,904
Total net assets $ 220,904
50,471 50,471
(4,840) 216,064
45,631 $ 266,535
A '1
VILLAGE OF KEY BISCAYNE, FLORIDA
COMBINING STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS
NONMAJOR ENTERPRISE FUNDS
FISCAL YEAR ENDED SEPTEMBER 30, 2004
Operating revenues:
Charges for services
Operating expenses:
General and administrative
Total
Sanitary Nonmajor
Solid Sewer Enterprise
Waste Construction Funds
$ 284,900 $ - $ 284,900
259,173 - 259,173
Operating income 25,727 - 25,727
Non -operating revenues (expense):
Interest income 1,071 - 1,071
Interest expense - (15,732) (15,732)
Total non -operating revenues
(expenses) 1,071 (15,732) (14,661)
Income (loss) before transfers 26,798 (15,732) 11,066
Transfers in 28,134 28,134
Change in net assets 26,798 12,402 39,200
Net assets, beginning 194,106 33,229 227,335
Net assets, ending $ 220,904 $ 45,631 $ 266,535
VILLAGE OF KEY BISCAYNE, FLORIDA
COMBINING STATEMENTS OF CASH FLOWS
NONMAJOR ENTERPRISE FUNDS
FISCAL YEAR ENDED SEPTEMBER 30, 2004
Cash flows from operating activities:
Receipts from customers and users
Payments to suppliers
Net cash provided by operating activities
Cash flows from non -capital financing activities:
Transfers from other funds
Cash flows from capital and relating financing activities:
Net payments from revolving loan
Interest paid
Net cash used by capital and related
financing activities
Cash flows from investing activities:
Interest received 1,070
Net cash provided by investing activities 1,070
Net increase in cash and cash equivalents 6,409
Cash and cash equivalents, beginning 73,459
Cash and cash equivalents, ending $ 79,868
Solid
Waste
Sanitary
Sewer
Construction
Total
Nonmajor
Enterprise
Funds
$ 262,991 $ 4,840 $ 267,831
(257,652)
5,339 4,840 10,179
Reconciliation of operating income to net cash
provided by operating activities:
Operating income
Adjustments to reconcile operating income to
net cash provided by operating activities:
Changes in operating assets and liabilities:
(Increase) decrease in:
Accounts receivable 3,571
Due from other funds (24,011)
Increase in:
Accounts payable
Total adjustments
Net cash provided by operating activities
- (257,652)
28,134 28,134
(17,242) (17,242)
(15,732) (15,732)
(32,974) (32,974)
1,070
1,070
6,409
73,459
$ 79,868
$ 25,727 $ - $ 25,727
3,571
- (24,011)
52 4,840 4,892
(20,388) 4,840 (15,548)
$ 5,339 $ 4,840 $ 10,179
-45-
STATISTICAL SECTION
VILLAGE OF KEY BISCAYNE, FLORIDA
GOVERNMENT -WIDE EXPENSES BY FUNCTION
LAST TEN FISCAL YEARS
Governmental Activities Business -type Activities
Fiscal General Public
Year Government Works
Police
Building, Interest
Parks Zoning on
and and Long -Term Solid Sanitary
Fire Recreation Planning Debt Stormwater Waste Sewer
Total
2003 $ 5,691,379 $ 963,676 $ 4,787,090 $4,821,645 $ 826,695 $ 1,252,012 $ 1,064,028 $ 634,361 $ 273,076 $ 6,288 $ 20,320,250
2004 3,249,523 1,103,940 4,311,449 4,738,402 1,013,741 1,220,180 1,487,245 971,081 259,173 15,732 18,370,466
(1) Information for fiscal year end 1994 - 2002 is unavailable in this format.
-46-
VILLAGE OF KEY BISCAYNE, FLORIDA
GOVERNMENT -WIDE REVENUES
LAST TEN FISCAL YEARS (1)
Fiscal
Year
Program Revenues
Charges
for
Services
Operating
Grants and
Contributions
2003 $ 2,142,380 $ 99,830 $ 421,085
2004 2,092,720
General Revenues
Capital Unrestricted
Grants and Taxes Investment
Contributions (2) Earnings Miscellaneous Total
$ 14,957,408 $ 104,449 $ 200,561 $ 17,925,713
524,736 16,488,915 131,797 126,947 19,365,115
(1) Information for fiscal year end 1994 - 2002 is unavailable in this format.
(2) Includes property taxes, utility taxes, franchise fees and intergovernmental revenue.
-47-
VILLAGE OF KEY BISCAYNE, FLORIDA
GENERAL GOVERNMENTAL EXPENDITURES BY FUNCTION
LAST TEN FISCAL YEARS
Fiscal General Public Parks and Public
Year Government Safety Recreation Works Total
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
2003 5,550,648 8,351,743 782,065 963,247 15,647,703
2004 5,616,810 8,576,547 952,261 1,098,250 16,243,868
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.
nQ
VILLAGE OF KEY BISCAYNE, FLORIDA
GENERAL GOVERNMENTAL REVENUES BY SOURCE
LAST TEN FISCAL YEARS
Licenses
Fiscal Property and
Year Taxes Permits
1996 6,486,019 430,208
1997 6,495,465 531,401
1998 6,963,900 1,003,768
1999 7,012,714 668,672
2000 7,799,633 1,316,641
2001 8,73 8,608 1,308,229
2002 9,569,030 859,435
2003 11,317,161 970,001
2004 12,770,711 961,100
Inter -
Governmental
Utility
Taxes
Franchise
Fees Other (1) Interest Total
1995 $6,820,807 $ 351,152 $ 788,062 $1,257,179 $652,844 $ 665,086 $369,540
791,403 1,294,486
766,638 1,555,812
843,812 1,514,697
807,924 1,621,473
889,704 1,723,902
930,169 1,772,208 738,513
971,136 2,258,931
999,391 2,251,876
1,031,805 2,219,118
Note: Includes general fund only (GAAP basis).
(1) Includes charges for services, grants, contributions and other.
$10,904,670
638,096 1,495,521 280,570 11,416,303
667,815 463,171 248,646 10,728,948
709,067 392,975 233,654 11,661,873
740,031 1,295,001 231,820 12,377,635
729,998 348,552 315,959 13,124,389
736,881 291,408 14,516,016
639,072 608,012 89,838 14,995,454
611,502 427,553 55,129 16,632,613
677,203 325,651 90,294 18,075,882
nn
VILLAGE OF KEY BISCAYNE, FLORIDA
UTILITY TAX REVENUE BY SOURCE
LAST TEN FISCAL YEARS
Fiscal
Year
Telecom -
Electricity munications
1995 $ 875,704 $ 186,780
1996 888,651 199,746
1997 1,032,445 274,768
1998 989,535 288,581
1999 992,319 380,934
2000 1,000,553 454,101
2001 1,018,973 492,442
2002 1,097,566 904,475
2003 1,162,030 825,739
2004 1,123,288
Fiscal
Year
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
Gas
$ 38,130
37,034
42,066
36,427
35,121
52,016
62,833
(0) 52,360
61,137
75,466
FRANCHISE FEE REVENUE BY SOURCE
LAST TEN FISCAL YEARS
Electricity
$ 589,031
571,093
578,195
631,323
653,799
646,000
678,316
639,072
611,502
677,203
Cable
Television Telephone
$ 43,899
46,824
62,342
53,728
56,997
59,548
67,855
()
$ 19,914
20,179
27,277
24,016
29,235
24,450
37,342
Fuel
Oil Water Total
$ 3,920 $ 152,645 $ 1,257,179
3,885 165,169 1,294,485
3,616 202,918 1,555,813
3,883 196,271 1,514,697
4,262 208,837 1,621,473
2,169 215,063 1,723,902
245 197,715 1,772,208
318 203,612 2,258,331
486 202,394 2,251,786
80 249,647 1,448,481
Total
$652,844
638,096
667,814
709,067
740,031
729,998
783,513
0) 639,072
611,502
677,203
(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 Fiscal Assessed Tax Total Percent
Year(1) Year Value Levy Collected2) Collected
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 8,73 8,608 97.0%
2001 2002 2,731,833,645 9,850,992 9,515,138 96.6%
2002 2003 3,259,919,981 11,755,271 11,317,160 96.3%
2003 2004 3,661,114,546 13,201,979 12,869,711 97.5%
(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.
(2) Collections reflect timely payment discounts of up to 4% and other adjustments.
Si
VILLAGE OF KEY BISCAYNE, FLORIDA
ASSESSED AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY
LAST TEN FISCAL YEARS
Net
Assessed
Tax Real Personal Property
Year Property Property Value
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
2003 3,617,880,990 43,233,556 3,661,114,546
2004 3,831,467,688 43,867,688 3,875,335,376
Source: Miami -Dade County Property Appraiser's Office
Note: Assessed values equal the estimated actual value.
-57-
VILLAGE OF KEY BISCAYNE, FLORIDA
PROPERTY TAX RATES
DIRECT AND OVERLAPPING GOVERNMENTS
LAST TEN FISCAL YEARS
Village of
Key Biscayne
Miami -Dade County
State School District
Debt Total Total Debt Total
Fiscal Village Operating Service County SFWMD FIND State Operating Service School
Year Millage Millage Millage Millage Millage Millage Millage Millage Millage Millage Other Total
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
2003 3.606 5.969 0.285 6.254 0.597 0.039 0.636 8.418 0.682 9.100 1.086 20.682
2004 3.606 5.935 0.285 6.220 0.597 0.039 0.636 8.090 0.597 8.687 1.030 20.179
Source: Miami -Dade County Property Appraiser's Office
-53-
VILLAGE OF KEY BISCAYNE, FLORIDA
RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR NET
BONDED DEBT TO GENERAL GOVERNMENTAL EXPENDITURES
LAST TEN FISCAL YEARS
Ratio of Debt
Total Service to
Total General General
Fiscal Debt Governmental Governmental
Year Principal. Interest (1) Service (2) Expenditures Expenditures
1995 $ 755,000 $ 384,661 $1,139,661 $ 10,603,914 10.7%
1996 785,000 351,089 1,136,089 8,746,746
1997 820,000 315,901 1,135,901 9,494,861
1998 855,000 277,825 1,132,825 10,034,276
1999 895,000 241,329 1,136,329 10,843,083
2000 935,000 595,767 1,530,767 12,074,903
2001 975,000 631,875 1,606,875 12,574,677
2002 1,015,000 1,420,845 2,435,845 14,497,752
2003 1,415,000 590,737 2,005,737 15,647,703
2004 1,575,659 1,107,696 2,683,355 16,044,756
Note Includes general fund only
(1) Excludes bond issuance and other costs
(2) Debt service on revenue bonds
13.0%
12.0%
11.3%
10.5%
12.7%
12.8%
16.8%
12.8%
16.7%
-54-
VILLAGE OF KEY BISCAYNE, FLORIDA
SCHEDULE OF DIRECT AND OVERLAPPING BONDED DEBT
GENERAL OBLIGATION BONDS
(IN THOUSANDS)
SEPTEMBER 30, 2004
Jurisdiction
Direct:
Village of Key Biscayne
Overlapping_
Miami -Dade County
Miami -Dade County Schools
Net
General Percentage Amount
Obligation Applicable Applicable
Taxable Bonded to to
Property Debt Key Key
Value (1) Outstanding Biscayne Biscayne
$ 3,875,335 $ 35,592 100.00% $ 35,592
147,593,767 221,554 (2)
127,196,133 750,606 (2)
$ 972,160
2.81% (3) 6,226
2.79% (3) 20,942
$ 27,168
(1) Source: Miami -Dade County Property Appraiser's Office - Taxable Property Value reflects
January 1, 2004 amounts.
(2) Source: Miami -Dade County Finance Department - Net General Obligation Bonded Debt
outstanding figures are as of September 30, 2004.
(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.
GG
VILLAGE OF KEY BISCAYNE, FLORIDA
RATIO OF NET BONDED DEBT
TO ASSESSED VALUE AND PER CAPITA
LAST TEN FISCAL YEARS
Ratio
of Net Net
Bonded Bonded
Net Debt to Debt
Fiscal Assessed Bonded Assessed Per
Year Population Value (1) Debt (2) Value Capita
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 1,861,243,132 6,840,000 0.37% 765
1998 9,471 2,003,049,232 5,985,000 0.30% 632
1999 9,689 2,028,174,208 22,290,000 1.10% 2,300
2000 10,507 2,223,956,515 21,220,000 0.95% 2,190
2001 10,607 2,499,049,161 30,120,000 1.21% 2,823
2002 10,698 2,731,833,645 29,935,000 1.10% 2,798
2003 11,100 3,259,919,981 29,271,000 0.90% 2,637
2004 11,100 (3) 3,661,114,546 28,840,000 0.79% 2,598
(1) Net bonded assessed actual value of taxable property
(2) Net bonded debt represents revenue bonds
(3) Estimated
VILLAGE OF KEY BISCAYNE, FLORIDA
REVENUE BOND COVERAGE
STORMWATER REVENUE BONDS (SERIES 1999)
LAST TEN FISCAL YEARS
Gross
Stormwater
Fiscal Fee
Year Revenue
1999 $ 480,586
2000 494,955
2001 518,961
2002 559,239
2003 551,774
2004 520,858
Operating
Expenses
$ 42,773
33,453
79,708
85,091
86,829
165,315
Net
Revenue
Available
for
Debt
Service
$437,813
461,502
439,253
474,148
464,945
355,543
Debt Service Requirements
Principal Interest Total Coverage
$ - $ 335,412 $ 335,412 130.53%
135,000 281,875 416,875 110.71%
125,000 291,622 416,622 105.43%
130,000 336,253 466,253 101.69%
195,000 273,613 468,613 99.22%
205,000 265,559 470,559 75.56%
VILLAGE OF KEY BISCAYNE, FLORIDA
DEMOGRAPHICS STATISTICS
POPULATION
Estimates of Population by Age
Year
2000
Estimates of Population by Race
2000
INCOME*
Per Capita Income
Under 20 Years 20 to 64 Years 65 Years or Older
Number Percent Number Percent Number Percent Total
2,697 26 6,176 59 1,634 15 10,507
Anglo Black Hispanic Total
5,228 48 5,231 10,507
Average
Per
Anglo Black Hispanic Capita
2000 $ 62,542 $13,417 $ 46,682 $ 54,612
UNEMPLOYMENT RATES (Percent)
Miami -Dade County*
Village of Key Biscayne
* Source: U.S. Bureau of Labor Statistics.
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
6.8 7.8 7.1 6.7 5.9 5.6 5.7 7.4 7.3 6.1
3.1 3.6 3.3 3.1 2.7 2.6 2.8 3.2 3.2 2.9
-58-
VILLAGE OF KEY BISCAYNE, F LORIDA
PROPERTY VALUE, CONSTRUCTION AND BANK DEPOSITS
LAST TEN FISCAL YEARS
Fiscal
Year
Residential
Commercial
Total
Permits # of # of
Issued Permits Valuation Permits
Total
of
Valuation Construction
County
Bank
Deposits (1) (2)
(000s Omitted)
Village
Bank
Deposits (2)
1995 2,857 2,568 $33,820,503 289 $ 2,099,661 $35,920,164 $ 17,938,762 (1) $
1996 3,171 3,060 65,318,655 111 1,231,097 66,549,752 14,561,654 (1)
1997 3,570 3,402 82,481,700 168 667,328 83,149,028 34,664,829 (1)
1998 3,002 2,879 129,200,900 106 3,176,031 132,376,931 36,659,805
1999 2,711 2,416 94,287,095 295 56,792,994 151,080,089 39,633,149
2000 1,793 1,641 85,244,371 152 9,359,770 94,604,141 38,539,107
2001 749 667 59,607,528 82 10,485,477 70,093,005 45,064,000
2002 856 769 23,206,296 87 1,101,721 24,308,017 51,297,000
2003 1,324 1,178 22,695,672 146 12,454,140 35,149,812 56,263,926
2004 452 419 16,601,825 33 3,444,057 20,045,882 62,368,000
(1) State of Florida, Division of Financial Services, as of June 30 of each respective year.
Information is for Miami -Dade County, which the Village of Key Biscayne was a part of.
(2) Deposits within Village of Key Biscayne limits. Information for all years presented was
not available from Federal Deposit Insurance Corporation.
347,178
377,060
364,973
328,602
311,837
328,303
377,855
GC)
VILLAGE OF KEY BISCAYNE, FLORIDA
PRINCIPAL TAXPAYERS
SEPTEMBER 30, 2004
Taxpayer
Sonesta Beach Resort, LP
United Real Estate Ventures
GB Hotel Partners, Ltd.
Ocean Club Community Association
Galleria of Key Biscayne, Inc
PITU, Inc.
Claudio and Yvonne Alvarez
Aurelio and Berta Fernandez
John and Mary Lou Dasburg
CSM Key Biscayne Equities
Source. Miami -Dade County Appraiser's Office
Taxable
Valuation
$ 44,303,388
37,439,697
26,500,000
12,500,000
12,455,903
10,049,044
8,672,883
8,167,365
7,113,817
6,291,338
% of
Total
Assessed
Valuation
1.14%
0.97%
0.68%
0.32%
0.32%
0.26%
0.22%
0.21%
0 18%
0.16%
$ 173,493,435 4.46%
VILLAGE OF KEY BISCAYNE, FLORIDA
MISCELLANEOUS STATISTICAL DATA
SEPTEMBER 30, 2004
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 1
Police Protection:
Number of Stations 1
Education:
Attendance Centers 2
Number of Students 1,442
Number of Teachers 110
Miami -Dade County Water & Sewer Authority
Number of Customers
Average Daily Consumption
Sewers:
Number of Customers
Fire Hydrants
1,771
3,018,384 gallons
1,023
249
Building Permits Issued 452
Recreation and Culture:
Number of Parks
Number of Libraries
Number of Tennis Centers
Number of Recreational Centers
Employees:
Full Time
3
1 (Operated by Miami -Dade County)
1
1
96
COMPLIANCE SECTION
Cohen
Holtz
Accountants Advisors
Report of Independent Certified Public Accountants on Internal Control Over
Financial Reporting and on Compliance and Other Matters Based on an Audit of
Financial Statements Performed in Accordance with Government Auditing Standards
Honorable Mayor, Village Council and Village Manager
Village of Key Biscayne, Florida
We have audited the financial statements of the governmental activities, the business -type activities, each
major fund, and the aggregate remaining fund information of the Village of Key Biscayne, Florida (the
Village) as of September 30, 2004 and for the year then ended which collectively comprise the Village's
basic financial statements, and have issued our report dated December 31, 2004. 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.
Internal Control over Financial Reporting
In planning and performing our audit, we considered the Village's internal control over financial
reporting in order to determine our auditing procedures for the purpose of expressing our opinions on the
basic financial statements and not to provide an opinion 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 reportable 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 caused by error or fraud
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.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Village's basic financial statements are free
of material misstatement, we performed tests of its compliance with certain provisions of laws,
regulations, contracts and grant agreements, noncompliance 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 noncompliance that are required to be
reported under Government Auditing Standards.
-62-
Rachlin Cohen & Holtz Lie
One Southeast Third Avenue • Tenth Floor • Miami, Florida 33131 • Phone 305.377.4228 • Fax 305.377 8331 • www.rachlin.com
An Independent Member of Baker Tilly International
Honorable Mayor, Village Council and Village Manager
Village of Key Biscayne, Florida
Page Two
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.
Lvov eci-4v itie&la P
Miami, Florida
December 31, 2004
-63-
Are-r.n.r,rc,r.re
Cohen
&Holtz
Arl,.,c"re
Cohen
&Holtz
Accountants Advisors
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 financial statements of the governmental activities, the business -type activities, each
major fund, and the aggregate remaining fund information of the Village of Key Biscayne, Florida (the
Village) as of and for the year ended September 30, 2004 which collectively comprise the Village's basic
financial statements, and have issued our report thereon dated December 31, 2004. 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. We have issued our Report of Independent Certified Public Accountants on
Internal Control over Financial Reporting and on Compliance and Other Matters. Disclosures in this
report, which is dated December 31, 2004, should be considered in conjunction with this management
letter
In connection with our audit of basic financial statements of the Village for the year ended September 30,
2004, 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)(h):
1. There were no significant findings or recommendations made in the preceding annual financial
audit.
2. The Village was in compliance with Section 218.415, Florida Statutes, regarding the investment
of public funds.
3. There were no recommendations to improve the Village's present financial management and
accounting procedures.
4. During the course of our audit, other than matters that are clearly inconsequential considering
both quantitative and qualitative factors, 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 or abuse that
have occurred, or were likely to have occurred, or were discovered within the scope of the
audit
-64-
Rachlin Cohen & Holtz LIP
One Southeast Third Avenue • Tenth Floor • Miami, Florida 33131 • Phone 305.377.4228 • Fax 305.377 8331 • www.rachlin.com
An Independent Member of Baker Tilly International
Honorable Mayor, Village Council and Village Manager
Village of Key Biscayne, Florida
Page Two
b. Made any illegal or improper expenditures that were discovered within the scope of the audit
that may materially affect the financial statements.
c. Had deficiencies in internal control that are reportable conditions including but not limited
to:
(1) Improper or inadequate accounting procedures
(2) Failures to properly record financial transactions
(3) Other inaccuracies, shortages, defalcations, and instances of fraud discovered by, or that
came to the attention of the auditor.
5. The Village was incorporated by Laws of Florida 90-142. There were no component units
related to the Village.
6. a. The Village, during fiscal year 2004, was not in a state of financial emergency as defined by
Florida Statutes 218.503(1).
b. The annual financial report for the year ended September 30, 2004 has been filed with the
Department of Financial Services pursuant to Section 218.32(1)(a), Florida Statutes and is in
agreement with the audited financial statements for the fiscal year ended September 30,
2004.
c. 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.
Miami, Florida
December 31, 2004
-65-
Cohen
&Holtz
A c-rcm nta ntc A dvi cnrc
Village of Key Biscayne, Florida
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Village
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2
Bal Harbour
Miami Beach
4
Miles
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. Ivey 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.