HomeMy Public PortalAboutCAFR 2011.pdfF
VILLAGE OF KEY BISCAYNE, FLORIDA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2011
Prepared by:
THE FINANCE DEPARTMENT
m
r
r
VILLAGE OF KEY BISCAYNE, FLORIDA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2011
TABLE OF CONTENTS
Introductory Section
fl
n
f
Letter of Transmittal
Village Officials iv
Certificate of Achievement for Excellence in Financial Reporting v
Organization Chart vi
Financial Section
Independent Auditors' Report 1-2
Management's Discussion and Analysis (Required Supplementary Information) 3-10
Basic Financial Statements
Government -Wide Financial Statements:
Statement of Net Assets 11
Statement of Activities 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 '70
Notes to Basic Financial Statements 21-56
Required Supplementary Information (Other Than MD&A)
Budgetary Comparison Schedule — General Fund 57
Note to Budgetary Comparison Schedule 58
Schedule of Funding Progress — Pension Trust Fund 59
Schedule of Employer Contributions — Pension Trust Fund 60
Schedule of Funding Progress — Other Post Employment Benefits 61
VILLAGE OF KEY BISCAYNE, FLORIDA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2011
TABLE OF CONTENTS
Statistical Section
Net Assets by Component 62
Changes in Net Assets 63-64
Fund Balances of Governmental Funds 65
Changes in Fund Balances of Governmental Funds 66
General Governmental Tax Revenues by Source 67
Net Assessed Value and Estimated Actual Value of Taxable Property 68
Property Tax Rates — Direct and Overlapping Governments 69
Principal Property Taxpayers 70
Property Tax Levies and Collections 71
Ratios of Outstanding Debt by Type 72
Ratios of General Bonded Debt Outstanding 73
Direct and Overlapping Governmental Activities Debt 74
Pledged Revenue Coverage 75
Demographic and Economic Statistics 76
Principal Employers 77
Full -Time Equivalent Village Government Employees by Function 78
Operating Indicators by Function/Program 79
Capital Asset Statistics by Function/Program 80
Compliance Section
Independent Auditors' Report 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 81-82
Management Letter in Accordance with the Rules of the Auditor General of the
State of Florida 83-85
1
r
INTRODUCTORY SECTION
f ../7/qt4c Council
Franklin I -I. Caplan, iiayor
Michael L. Kelly, I 'ice Mayor
Michael W. Davey
l:.nriyue Garcia
Robert Gasman
Mavra P. Lindsay
James S. l ainior
VILLAGE OF KEY BISCAYNE
Department of Finance and Administrative Services
April 27, 2012
To the Honorable Mayor, Members of the Village
Council and Citizens of the Village of Key Biscayne:
Florida Statutes require that all units of local government publish 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 requirement, we hereby issue the Comprehensive
Annual Financial Report (CAFR) of the Village of Key Biscayne for the fiscal year ended September 30,
2011.
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 Marcum 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, 2011
are free of material misstatement. The independent audit 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, 2011 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.
88 West McIntyre Street • Suite 210 • Key Biscayne, Florida 33149 • (305) 365-8904 • Fax (305) 365-8936
/11* 'IISSIOX STATII\II:NT:'TO PRovitm. A SAVE, QUALM CONINE:N ' ENVIRONMENT l'OR ALL ISLANDERS RS l'EiROL'Gf-i RiSYOVsiRl i'. GOviiR\?Iii , r'
WWW.kcybiscayne.fl.gov
The Village of Key Biscayne's MD&A can be found immediately following the independent auditors'
report.
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 12,344. The Village of
Key Biscayne receives tax levies on real and personal property located inside its boundaries.
The Village of Key Biscayne operates under the council-manager form of government. Policymaking and
legislative authority are vested in a governing council consisting of the mayor and six other council
members. The Council is responsible for, among other things, 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 point 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 shopping centers. There is no
industrial area in the community.
Property values were once again lower during the past year following nationwide trends. Continuing
weakness in the national and state economy will constrain the growth of property tax revenues and will
likely have an unfavorable impact on many of the Village's intergovernmental revenues such as sales tax
rrlk
7
7
7
ii
and state revenue sharing. The Village continues to monitor operating expenses closely while seeking
additional cost-cutting measures to mitigate any future loss of revenue.
Long -Term Financial Planning
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. Additionally, the Village has
modified its 5 -Year Capital Plan by prioritizing needs based on its expected available resources
determined by its 5 -Year financial forecast. This effort is also identifying capital purchases that will be
needed to continue its critical core public safety services, as well as other departmental needs.
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, 2010. This was the nineteenth 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.
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.
The preparation of this report would not have been possible without the efficient and dedicated services
of the entire staff of all departments of the Village of Key Biscayne. We 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 Marcum LLP, our independent auditors,
for their assistance and efforts in helping the Village prepare the CAFR. Appreciation is also extended to
the Mayor and the Village Council for their unfailing support for maintaining the highest standards of
professionalism in the management of the Village of Key Biscayne's finances.
Respectfully submitted,�
C
J�hn C. ilbert
Vilage anager
iii
{
r
r
VILLAGE OF KEY BISCAYNE, FLORIDA
VILLAGE OFFICIALS
SEPTEMBER 30, 2011
VILLAGE COUNCIL
Franklin H. Caplan, Mayor
Michael E. Kelly, Vice Mayor
Michael W. Davey, Councilman
Enrique Garcia, Councilman
Robert Gusman, Councilman
Mayra P. Lindsay, Councilwoman
James S. Taintor, Councilman
VILLAGE MANAGER
John C. Gilbert
VILLAGE CLERK
Conchita H. Alvarez, MMC
VILLAGE ATTORNEY
Weiss Serota Helfman Pastoriza Cole & Boniske, P.A.
FINANCE DIRECTOR
Beatrice Galeano, P.A.
INDEPENDENT AUDITORS
Marcum LLP
iv
.4,
/,119
(‘
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, 2010
A Certificate of Achievement for Excellence in Financial
Reporting is presented by the Government Finance Officers
Association of the United States and Canada to
government units and public employee retirement
systems whose comprehensive annual financial
reports (CAFRs) achieve the highest
standards in government accounting
and financial reporting.
Executive Director
VOTERS OF
KEY BISCAYNE
Village
Council
Local Planning
Agency
Village Clerk
Special Master
Village Manager
Village Attorney
Executive Asst
to the
Manager
Police/Fire
Retirement
Board
Department of
Building,
Zoning and
Planning
Building
Zoning
Planning
Code Assistance
Public Safety
Department
Fire Rescue
Police
Department of
Parks and
Recreation
Special Events
Sports and
Athletics
4
Programs
and Tours
Senior
Coordina4
Department of
Public
Works
Village Engineer
Contract
Supervisor
Storm water
Management
Refuse
Collection
and Recycling
Maintenance
Department of
Finance and
Administrative
Services
Finance/
Accounting
Personnel/
Benefits
Risk
Management
r
r
FINANCIAL SECTION
r
INDEPENDENT AUDITORS' REPORT
p
ACCOUNTANTS A ADVISORS
INDEPENDENT AUDITORS' REPORT
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, 2011 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.
r
We conducted our audit in accordance with auditing standards generally accepted in the United
States of America 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 consideration of
internal control over financial reporting as a basis for designing audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Village's internal control over financial reporting. Accordingly, we express
no such opinion. An audit also includes examining, on a test basis, evidence supporting the
amounts and disclosures in the financial statements, 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, 2011 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 of America.
As more fully described in Note 1 to the financial statements, the Village implemented the
requirements of Governmental Accounting Standards Board Statement No. 54, Fund Balance
Reporting and Governmental fund Type Definitions, which significantly changed the_
classifications of fund balance of governmental funds.
MARCUMGROUP
M EM BEfi
1
Marcum LIP • One Southeast Third Avenue • Tenth Floor • Miami, Florida 33131 • Phone 305.995.9600 ■ Fax 305.995.9601
marcuohllp_com
In accordance with Government Auditing Standards, we have also issued our report dated
April 27, 2012 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 considered in assessing the results of our audit.
Accounting principles generally accepted in the United States of America require that the
Management's Discussion and Analysis, the budgetary comparison schedule and the schedules of
funding progress and employer contributions on pages 3 through 10 and pages 57 through 61,
respectively, be presented to supplement the basic financial statements. Such information,
although not a part of the basic financial statements, is required by the Governmental Accounting
Standards Board, which considers it to be an essential part of financial reporting for placing the
basic financial statements in an appropriate operational, economic, or historical context. We
have applied certain limited procedures, to the required supplementary information in accordance
with auditing standards generally accepted in the United States of America, which consisted
principally of inquiries of management regarding the methods of preparing the information and
comparing the information for consistency with management's responses to our inquiries, the
basic financial statements, and other knowledge we obtained during our audit of the basic
financial statements. We do not express an opinion or provide any assurance on the information
because the limited procedures do not provide us with sufficient evidence to express an opinion
or provide any assurance.
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the Village of Key Biscayne basic financial statements as a whole. The
introductory section and statistical sections are presented for purposes of additional analysis and
are not a required part of the basic financial statements. The information included in the
introductory section and statistical sections have not been subjected to the auditing procedures
applied in the audit of the basic financial statements and, accordingly, we express no opinion on
or provide any assurance on them.
%M41b ( «P
Miami, FL
April 27, 2012
2
J ?
1.Y.:_- __--.n
A
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, 2011. 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-iii of this report.
Financial Highlights
• The assets of the Village of Key Biscayne exceeded its liabilities at the close of the most recent fiscal
('m+ year by $79,193,555 (net assets).
• The Village's total net assets increased by $3,478,732. This is attributable to an increase in building
permit and stormwater fee revenues.
7 • By taking advantage of lower interest rates, the Village generated approximately $1,997,494 in savings
by refunding bonds.
• At the close of the current fiscal year, the Village of Key Biscayne's governmental funds reported an
ending fund balance of $20,131,514, an increase of $948,700 in comparison with the prior year. The
Village's charter requires that there be no unassigned fund balance.
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 required 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
r
• deteriorating.
The statement of activities presents information showing how the Village's net assets changed during the
most recent fiscal year. All changes in net assets are reported as soon as the 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
7 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 works, police, fire, parks and recreation and building planning and zoning.
The government -wide financial statements include only the Village of Key Biscayne itself (known as the
primary government).
3
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 proprietary 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
spendable 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, a special revenue fund
and a capital projects fund.
The Village of Key Biscayne adopts an annual appropriated budget for its general fund. A budgetary
comparison schedule 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.
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 56 of this report.
t
fim
1
P•17.
Other Information
In addition to the basic financial statements and accompanying notes, this report also presents certain
required supplementary information including budgetary comparisons and the Village's progress in funding
its obligation to provide pension benefits and other post -employment benefits to its employees.
Required supplementary information can be found on pages 57 to 61 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 of Key Biscayne, assets exceeded liabilities by $79,193,555 at the close of the most
recent fiscal year.
A portion of the Village's assets, $97,283,422 or 81%, 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 increased the Village of Key Biscayne net assets by
$3,172,050. The majority of this increase is attributable to licensing and permitting activities and Key
Biscayne Community Center programs. 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
2011 2010 2011 2010 2011 2010
Current assets
Capital assets, net
Total assets
Current liabilities
Noncurrent liabilities
Total Liabilities
Investment in capital assets,
net of related debt
Restricted
Unrestricted
$ 22,222,158
71,685,564
93,907,722
1,895,815
30,921,856
32,817,671
$ 21,037,985 $ 1,225,219
71,465,039 25,597,858
92,503,024 26,823,077
$ 1,226,700
25,826,523
27,053,223
4,423,980 92,185 729,229
30,161,043 8,627,388 8,527,172
34,585,023 8,719,573 9,256,401
43,428,433 41,377,118
1,170,247 --
16,491,371 16,540,883
16,970,470 16,680,711
1,133,034
1,116,111
S 23,447,377
97,283,422
120,730,799
1,988,000
39,549,244
41,537,244
$ 22,264,685
97,291,562
119,556,247
5,153,209
38,688,215
43,841,424
60,398,903 58,057,829
1,170,247
17,624,405 17,656,994
Total Net Assets $ 61,090,051 $ 57,918,001 $ 18,103,504 S 17,796,822 $ 79,193,555 $ 75,714,823
5
Governmental Activities Business -type Activities Total
2011 2010 2011 2010 2011 2010
Revenues
Program revenues:
Charges for services $ 4,834,169 $ 3,694,600 $ 1,577,296 $ 1,100,412 $ 6,411,465 $ 4,795,012
Operating grants and contributions 77,638 163,752 -- -- 77,638 163,752
Capital grants and contributions 730,492 959,360 258,500 2,673,451 988,992 3,632,811
General revenues:
Property taxes 16,646,040 17,832,874 16,646,040 17,832,874
Utility taxes 1,705,238 1,655,032 1,705,238 1,655,032
Communications services tax 964,324 1,029,087 964,324 1,029,087
Franchise fees 735,519 1,006,415 735,519 1,006,415
Unrestricted intergovenunental revenue 1,575,314 1,391,242 -- 1,575,314 1,391,242
Investment income and miscellaneous 184,319 153,193 2,162 1,974 186,481 155,167
Total Revenues 27,453,053 27,885,555 1,837,958 3,775,837 29,291,011 31,661,392
Expenses
General govcnunent 2,830,412 2,751,697 2,830,412 2,751,697
Public Safety 12,538,607 12,122,776 12,538,607 12,122,776
Parks and Recreation 4,232,147 4,134,830 4,232,147 4,134,830
Public Works 1,719,526 1,614,443 1,719,526 1,614,443
Building, Zoning and Pbnning 1,714,303 1,611,119 1,714,303 1,611,119
Interest on long-term debt 1,217,874 1,366,437 -- -- 1,217,874 1,366,437
Stonnwatcr -- -- 815,402 603,262 815,402 603,262
Solid waste collection 546,534 585,927 546,534 585,927
Sanitary sewer construction 197,474 39,178 197,474 39,178
Total Expenses 24,252,869 23,601,302 1,559,410 1,228,367 25,812,279 24,829,669
Changes in net assets before transfers 3,200,184 4,284,253 278,548 2,547,470 3,478,732 6,831,723
Transfers (28,134) (212,308) 28,134 212,308
Changes in net assets after transfers 3,172,050 4,071,945 306,682 2,759,778 3,478,732 6,831,723
Net Assets - Beginning 57,918,001 53,846,056 17,796,822 15,037,044 75,714,823 68,883,100
Net Assets - Ending $61,090,051 $57,918,001 $18,103,504 $17,796,822 $79,193,555 $75,714,823
The Village's net assets increased by $3,478,732 during the current fiscal year. This increase is attributable
to an increase in licensing and permitting activities.
Business -type Activities
Business -type activities increased the Village's net assets by $306,682.
• In fiscal 2011, the solid waste and stormwater funds reflected increases in net assets.
• The Stormwater Utility Fund reflected net income of $164,463, due mainly to an increase in rates for
FY 2011.
• The Solid Waste Collection Fund reported net income of $50,897, due to increased collection of old
receivables and lower operational costs.
• The Sanitary Sewer Construction Fund project has been completed. The net income of $61,026 is a
result of a capital grant.
6
Governmental Activities
Revenues by Source - Governmental Activities
Operating Grants and
Contributions,
$77,638 , 0%
Intergovernmental,
$1,575,314 , 6%
Utility Taxes,
$1,705,238 ,
6%
Communications_ Franchise
Services Tax, Fees,
$964,324 , 4% $735,519 , 3%
Investment Earnings, Other, $147,065 , 1%
$37,254 , 0%
Charges for Services,
$4,834,169 , 18%
Expenses - Governmental Activies
Interest on Long Term
Debt, $1,217,874 ,
Building, Zoning an 5.02%
Planning, $1,714,303 ,
7.07%
Parks and Re
$4,232,14
Fire, $6,853,329 ,
28.26%
General Government,
$2,830,412 , 11.67%
Public Works,
1,719,526 , 7.09%
, $5,685,278 ,
23.44%
7
Business -type Activities
Revenues by Source - Business Type Activities
Expenses - Business Type Activities
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.
At the end of the current fiscal year, fund balance of the general fund was $17,544,071, an increase of
$2,257,382 in comparison with the prior year. All balances have been categorized and set aside for the
following uses: (1) Non -spendable: prepaid items $305,730, (2) Restricted: building inspections, fire code
violations, fire grant revenue and law enforcement seizures $1,170,247, (3) Committed: capital improvement
plan, capital leases, emergencies, fire rescue transport fees, fire station building reserves, fire vehicle
replacements, labor negotiations, master plan initiatives, open space land trust, playing fields,
police/administrative building reserve, recreational facilities and roadway improvements $12,039,224 and (4)
Assigned: compensated absences, police pension and working capital $4,028,870.
8
The aeneral fund is the chief operating fund of the Village of Key Biscayne. As a measure of the general
futitr's liquidity, it may be useful to compare total fund balance to total fund expenditures. Total fund
balance represents 43% of total general fund expenditures.
A:;stmnmary 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, 2011 and 2010, is shown as
foolkkws:
Table B-1
Summary of Condensed Balance Sheet
2011 2010
Total Assets
Total Liabilities
Reserved Fund Balance
Total Liabilities and Fund Balance
$ 19,192,632 $ 16,903,287
$ 1,648,561 $ 1,616,598
17,544,071 15,286,689
$ 19,192,632 $ 16,903,287
Table B-2
Summary of Condensed Statement of Revenues,
Expenditures and Changes in Fund Balances
Total Revenues
Total Expenditures
Excess of Revenues over Expenditures
Total Other financing Sources (Uses)
Net Change in Fund Balance
2011 2010
$ 26,544,351 $ 26,785,459
24,580,516 23,793,439
1,963,835 2,992,020
293,547 (23,864)
$ 2,257,382 $ 2,968,156
The Transportation Special Revenue Fund was established to account for the construction and future
maintenance of the Village's roadways. County bridge toll revenues are the source of funding for
construction of roadways, while the local option gas tax funds maintenance and the transportation surtax
funds debt service.
At present, the fund shows a negative fund balance due to phase three of the Crandon Boulevard
Improvement Project. The majority of the negative fund balance will be eliminated in fiscal year 2012 with
receipts from intergovernmental revenue and due to reduced debt service costs in direct relation to the
refunding of the Series 2005 Bonds.
The Capital Improvement Fund historically receives an annual budgeted transfer from the general fund to
fund capital construction of infrastructure throughout the island. Due to the downward trend of revenues the
ability to fund unlimited capital projects has decreased. At management's recommendation surplus funds
generated by the general fund during the recent fiscal year were reserved as working capital in order to
mitigate future economic challenges.
General Fund Budgetary Highlights
There were three departments with significant budget to actual variances: Fire, Building, Zoning and
Planning, and the Community Center. These variances were cause by the following:
• Fire Rescue — payout of compensated absences per employee Collective Bargaining Agreement.
• Building, Planning & Zoning — increased licensing and permitting activity as offset by corresponding
revenues.
• Community Center — increased program expenses as offset by corresponding revenues.
9
Capital Assets
As of September 30, 2011, the Village's capital assets net of accumulated depreciation amounted to
$97,283,422. Major capital asset events during the fiscal year included the following:
• Enhancements to the Emergency Management Services within the Fire Rescue department
• Continuation of the Beach Renourishment program
• Installation of public parking at the Community Church
• Installation of traffic calming devices
• Architectural design of 530 Crandon Blvd park
• Resurfacing of Mashta Island Drive
Additional information on the Village's capital assets can be found in Note 7 on pages 37-47 of this report.
Debt Administration
At September 30, 2011, the Village had bonded debt outstanding of $36,384,610. Of this amount, $10,004,830
represents bonds secured solely by specified revenue sources (Transportation Tax Revenue Bonds, Road
Improvement Revenue Bonds and State Revolving Fund Loans). The remainder represents special obligation
bonds that are secured by non -ad Valorem revenues through covenants to budget and appropriate.
In order for the Village to take advantage of the historical low interest rate environment, several banks were
surveyed for financing rates on potential loans with maturity dates equal to those of the existing debt.
Results indicated reduced interest rates that would allow the Village to refinance various existing bonds and
obtain present value savings. During the year the Village refinanced five of its obligation bonds. The
refunding involved the issuance of new debt whose proceeds were used to immediately repay the previously
issued debt and produce positive cash flow savings.
Additional information on the Village's long-term debt can be found in Note 8 on pages 37-47 of this report.
Economic Factors and Next Year's Budgets and Rates
As the local and national economy begins to recover, commercial real estate in Miami -Dade is starting to show
signs of improvement. Miami -Dade County is leading the way in attracting diverse new businesses to our area.
Based on these indicators, the Village of Key Biscayne continues to manage a budget that is responsive to the
needs of its community. Focus is on lowering operating expenditures and seeking cost-cutting measures while
maintaining a stable millage rate of 3.2, as sustained for the past four years. Additionally, prior year surpluses
have been set aside as working capital to offset any unforeseen loss of revenue.
The unemployment rate for Miami -Dade County is currently 9.4%, which is a decrease from a rate of
13.20% percent a year ago. This is favorable to the state's average unemployment rate of 10.6% as of
September 30, 2011.
All of these factors were considered during preparation of the Village of Key Biscayne's budget for the 2012
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 33149.
10
r
r
BASIC FINANCIAL STATEMENTS
r
r"
VILLAGE OF KEY BISCAYNE, FLORIDA
STATEMENT OF NET ASSETS
SEPTEMBER 30, 2011
Assets
Cash and cash equivalents
Investments
Receivables, net
Prepaids
Internal balances
Net pension asset
Deferred bond issue costs
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
Unearned revenue
Noncurrent liabilities:
Due within one year
Due in more than one year
Net OPEB obligation
Total Liabilities
Net Assets
Invested in capital assets, net of related debt
Restricted (Note 12)
Unrestricted
Total Net Assets
Governmental
Activities
Business -
type
Activities
Total
$ 8,563,328
11,007,623
1,034,444
305,730
683,785
140,395
200,000
14,173
272,680
24,437,022
47,248,542
93,907,722
856,120
181,014
858,681
2,622,910
28,058,066
240,880
32,817,671
43,428,433
1,170,247
16,491,371
$ 1,111,642
747,362
(683,785)
50,000
280,993
25,316,865
$ 9,674,970
11,007,623
1,781,806
305,730
140,395
250,000
14,173
272,680
24,718,015
72,565,407
26,823,077 120,730,799
92,185
695,584
7,931,804
8,719,573
16,970,470
1,133,034
948,305
181,014
858,681
3,318,494
35,989,870
240,880
41,537,244
60,398,903
1,170,247
17,624,405
$ 61,090,051 $ 18,103,504 $ 79,193,555
The accompanying notes are an integral part of these financial statements.
11
VILLAGE OF KEY BISCAYNE, FLORIDA
STATEMENT OF ACTIVITIES
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2011
Functions/Programs
Expenses
Program Revenues
Charges Operating Capital
for Grants and Grants and
Net (Expense)
Changes in
Governmental
Services Contributions Contributions Activities
Revenue and
Net Assets
Business -
type
Activities
Total
Governmental activities
General government
Police
Fire
Public works
Building, zoning and planning
Parks and recreation
Interest on long-term debt
Total governmental activities
Business -type activities
Stormwater
Sanitary sewer
Solid waste
Total business -type activities
Total
$ 2,830,412
5,685,278
6,853,329
1,719,526
1,714,303
4,232,147
1,217,874
24,252,869
815,402
197,474
546,534
$ 169,307 $
1,763
190,989
2,184,127
2,287,983
4,834,169
979,865
597,431
1,559,410 1,577,296
$
31,040
46,598
77,638
$ (2,661,105) $
(5,683,515)
-- (6,631,300)
730,492 (989,034)
-- 469,824
(1,897,566)
(1,217,874)
730,492 (18,610,570)
258,500
258,500
$ 25,812,279 $ 6,411,465 $ 77,638 $ 988,992
General Revenues
Property taxes
Franchise fees based on gross receipts
Utility taxes
Communications services tax
Unrestricted intergovernmental revenue
Unrestricted investment earnings
Miscellaneous income
Transfers
Total General Revenues and Transfers
Change in Net Assets
Net Assets - Beginning
Net Assets - Ending
(18,610,570)
16,646,040
735,519
1,705,238
964,324
1,575,314
37,254
147,065
(28,134)
21,782,620
3,172,050
57,918,001
$ 61,090,051
164,463
61,026
50,897
276,386
276,386
2,162
28,134
30,296
306,682
17,796,822
$ 18,103,504
$ (2,661,105)
(5,683,515)
(6,631,300)
(989,034)
469,824
(1,897,566)
(1,2 l 7,874)
(18,610,570)
164,463
61,026
50,897
276,386
(18,334,184)
16,646,040
735,519
1,705,238
964,324
1,575,314
39,416
147,065
21,812,916
3,478,732
75,714,823
$ 79,193,555
The accompanying notes are an integral part of these financial statements.
12
VILLAGE OF KEY BISCAYNE, FLORIDA
BALANCE SHEET
GOVERNMENTAL FUNDS
r
t
rrk
r
SEPTEMBER 30, 2011
Assets
Cash and cash equivalents
Investments
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
Due to other funds
Deferred revenue
Total Liabilities
Fund Balances (Note 12)
Non -spendable
Restricted
Committed
Assigned
Unassigned
Transportation
Special
General Revenue
Capital
Improvements
Total
Governmental
Funds
$ 7,804,167 $
8,006,389
904,846
1,898,820
305,730
272,680
121,351
14,173
$ 759,161
3,001,234
8,247
$ 8,563,328
11,007,623
1,034,444
1,898,820
305,730
14,173
272,680
$ 19,192,632 $ 135,524 $ 3,768,642 $ 23,096,798
$ 752,737 $ -- $ 103,383 $ 856,120
1,695 1,213,340 -- 1,215,035
894,129 — -- 894,129
1,648,561
305,730
1,170,247
12,039,224
4,028,870
1,213,340 103,383
-- 3,665,259
(1,077,816)
Total Fund Balances (Deficit) 17,544,071 (1,077,816) 3,665,259
Total Liabilities and Fund Balances $ 19,192,632 $ 135,524 $ 3,768,642
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 net pension asset is not considered to represent a financial asset and
therefore is not reported in the governmental funds
Long-term receivables are not available to pay for current period
expenditures and, therefore, are not reported in the funds
Long-term liabilities, including bonds payable, are not due and payable in the current
period and therefore not reported in the funds (Note 2)
Net Assets of Governmental Activities
2,965,284
305,730
1,170,247
15,704,483
4,028,870
(1,077,816)
20,131,514
71,685,564
140,395
35,448
(30,902,870)
$ 61,090,051
The accompanying notes are an integral part of these financial statements.
13
VILLAGE OF KEY BISCAYNE, FLORIDA
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2011
Transportation Total
Special Capital Governmental
General Revenue Improvements Funds
Revenues
Property taxes
Utility taxes
Communications services tax
Franchise fees
Licenses and permits
Intergovernmental
Charges for services
Interest
Grants
Miscellaneous income
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
Deficiency of revenues
over expenditures
Other Financing Sources (Uses)
Capital lease
Transfers out
Debt service - principal
Refunding bonds issued
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances (Deficit) - Beginning
Fund Balances (Deficit) - Ending
$ 16,646,040 $
1,705,238
1,011,971
735,519
1,948,820
1,358,573
2,885,349
29,038
77,638
146,165
947,233
18
26,544,351 947,251
1,929,153
6,557,442
5,312,977
1,711,868
1,702,541
3,799,408
423,823
1,918,987
1,224,317
$
8,198
900
$ 16,646,040
1,705,238
1,011,971
735,519
1,948,820
2,305,806
2,885,349
37,254
77,638
147,065
9,098 27,500,700
-- 1,929,153
-- -- 6,557,442
-- 5,312,977
-- 1,711,868
1,702,541
3,799,408
1,539,396 1,963,219
429,519
296,116
-- 2,348,506
-- 1,520,433
24,580,516 725,635 1,539,396 26,845,547
1,963,835 221,616 (1,530,298) 655,153
321,681
(28,134)
(15,885,000) (2,808,952)
15,885,000 2,808,952
293,547
2,257,382
15,286,689
221,616
(1,299,432)
(1,530,298)
5,195,557
321,681
(28,134)
(18,693,952)
18,693,952
293,547
948,700
19,182,814
$ 17,544,071 $ (1,077,816) $ 3,665,259 $ 20,131,514
The accompanying notes are an integral part of these financial statements.
14
07,1
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
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2011
r
r
7
P
r
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)
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:
Cost of assets
Depreciation expense
Net adjustment
Under the modified accrual basis of accounting used in the governmental funds,
revenues are not recognized until funds are measurable and available to
finance current expenditures. In the statement of activities, however, which
is presented on the accrual basis, revenues are reported when earned.
The detail of the difference is as follows:
Communications services tax proceeds
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.
The detail of the differences are as follows:
Debt payments
Capital lease payments
Other debt adjustment
Refunding bonds proceeds
Capital lease proceeds
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
Accrued interest expense
Debt issuance costs
Net OPEB obligation
Net pension asset
Other items
Change in net assets of governmental activities (Page 12)
$ 1,844,950
(1,636,232)
20,887,408
152,488
2,562
(18,693,952)
(321,681)
$ 948,700
208,718
(47,647)
2,026,825
(144,704)
120,560
181,999
(120,3 88)
11,302
(13,315) 35,454
$ 3,172,050
The accompanying notes are an integral part of these financial statements.
15
VILLAGE OF KEY BISCAYNE, FLORIDA
STATEMENT OF NET ASSETS
PROPRIETARY FUNDS
SEPTEMBER 30, 2011
Business -type Activities -
Enterprise Funds
Stormwater
Utility
System
Assets
Sanitary
Sewer Solid
Construction Waste
Totals
Current Assets
Cash and cash equivalents $ 192,569
Accounts receivables, net 556,299
Due from other funds
Total Current Assets 748,868
Noncurrent Assets
Capital assets not being depreciated
Capital assets being depreciated, net
Deferred bond issue costs
Total Noncurrent Assets
Total Assets
Liabilities
Current Liabilities
Accounts payable and accrued liabilities
Due to other funds
Current portion of revolving loans
Current portion of revenue bonds payable
280,993
6,508,607
50,000
$ 763,377 $ 155,696 $ 1,111,642
-- 191,063 747,362
1,695 1,695
763,377 348,454 1,860,699
18,808,258
6,839,600 18,808,258
280,993
25,316,865
50,000
25,647,858
7,588,468 19,571,635 348,454 27,508,557
32,881
685,480
475,000
Total Current Liabilities 1,193,361
Noncurrent Liabilities
Revenue bonds
Revolving loans
3,655,000
Total Noncurrent Liabilities 3,655,000
Total Liabilities 4,848,361
Net Assets
Invested in capital assets, net of related debt
Unrestricted
Total Net Assets
12,835
220,584
233,419
4,276,804
4,276,804
4,510,223
46,469 92,185
-- 685,480
220,584
475,000
46,469 1,473,249
3,655,000
4,276,804
7,931,804
46,469 9,405,053
2,659,600 14,310,870 16,970,470
80,507 750,542 301,985 1,133,034
$ 2,740,107 $ 15,061,412 $ 301,985 $ 18,103,504
The accompanying notes are an integral part of these financial statements.
16
VILLAGE OF KEY BISCAYNE, FLORIDA
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS
PROPRIETARY FUNDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2011
Business -type Activities -
Enterprise Funds
r
Operating Revenues
Charges for services
Operating Expenses
General and administrative
Depreciation
Total Operating Expenses
Operating Income
Non -Operating Revenues (Expenses)
Interest income
Interest expense
Total Non -Operating
Revenues (Expenses)
Income (Loss) before Contributions
and Transfers
Capital contributions
Transfers in
Transfers out
Total Contributions and Transfers
Change in Net Assets
Net Assets - Beginning
Net Assets - Ending
Stormwater
Utility
System
Sanitary
Sewer
Construction
Solid
Waste
Totals
$ 979,865 $ $ 597,431 $ 1,577,296
359,377
288,567
647,944
331,921
328
(167,458)
1,718
(197,474)
(167,130) (195,756)
164,791 (195,756)
258,500
300,000 28,134
-- (300,000)
300,000 (13,366)
464,791 (209,122)
2,275,316 15,270,534
$ 2,740,107 $ 15,061,412
546,534 905,911
-- 288,567
546,534 1,194,478
50,897 382,818
116 2,162
(364,932)
116 (362,770)
51,013
20,048
258,500
328,134
(300,000)
286,634
51,013 306,682
250,972 17,796,822
$ 301,985 $ 18,103,504
The accompanying notes are an integral part of these financial statements.
17
VILLAGE OF KEY BISCAYNE, FLORIDA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FISCAL YEAR ENDED SEPTEMBER 30, 2011
Business -type Activities -
Enterprise Funds
Cash Flows from Operating Activities
Receipts from customers and users
Receipts from interfund services provided
Payments to suppliers
Payments for interfund services
Net Cash Provided by Operating Activities
Cash Flows from Non -Capital Financing Activities
Transfers in from other funds
Transfers out to other funds
Net Cash Provided by (Used In) Non -Capital
Financing Activities
Cash Flows from Capital and Related Financing Activities
Capital contributions
Proceeds from revenue bond issuance
Proceeds from revolving loan
Payments for construction of capital assets
Payments on revenue bonds
Payments on revolving loans
Interest paid
Other debt issuance costs paid
Net Cash Provide by (Used In) Capital
and Related Financing Activities
Cash Flows from Investing Activities
Interest received
Net Cash Provided by Investing Activities
Net Increase (Decrease) 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
Due from other funds
Increase (decrease) in:
Accounts payable and accrued liabilities
Due to other funds
Total adjustments
Net Cash Provided by Operating Activities
Stormwater
Utility
System
Sanitary
Sewer
Construction
Solid
Waste
Totals
$ 590,001 $
34,607
(364,218)
260,389
300,000
300,000
4,450,000
(15,342)
(4,770,000)
(167,458)
(50,000)
-- $ 609,619
-- (544,281)
-- (499)
64.839
28,134
(300,000)
(271,866)
$ 1,199,620
34,607
(908,499)
(499)
325,228
328,134
(300,000)
28,134
580,820 580,820
-- 4,450,000
48,968 48,968
(60,375) -- (75,717)
-- -- (4,770,000)
(247,392) -- (247,392)
(197,474) -- (364,932)
-- (50,000)
(552,800) 124,547
328
328
7,917
184,652
$ 192,569
1,718
1,718
116
116
(378,253)
2,162
2,162
(145,601) 64,955 (72,729)
908,978 90,741 1,184,371
$ 763,377 $ 155,696 $ 1,111,642
$ 331,921 $ -- $
288,567
(389,865)
(4,841)
34,607
(71,532)
50,897 $ 382,818
288,567
13,883 (375,982)
-- (1,695) (1,695)
2,253 (2,588)
(499) 34,108
13,942 (57,590)
$ 260,389 $ $ 64,839 $ 325,228
1,149
The accompanying notes are an integral part of these financial statements.
18
"°1
r
Trl
VILLAGE OF KEY BISCAYNE, FLORIDA
STATEMENT OF FIDUCIARY NET ASSETS
PENSION TRUST FUND
r
( SEPTEMBER 30, 2011
Assets
r Investments
Money market funds $ 1,334,719
Common stocks 4,758,712
r Mutual funds 9,177,855
7 Total Investments 15,271,286
7
Contributions Receivable
Village (including State) 42,694
Total Assets
Liabilities
Net Assets
Net Assets Held in Trust for Pension Benefits
15,313,980
$ 15,313,980
The accompanying notes are an integral part of these financial statements.
19
VILLAGE OF KEY BISCAYNE, FLORIDA
STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS
PENSION TRUST FUND
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2011
Additions
Contributions
Plan members $ 659,341
Village (including State) 1,135,705
Total Contributions 1,795,046
Investment Income
Net depreciation in the fair value of investments (220,895)
Interest and dividends 154,346
(66,549)
Less: investment expenses (100,817)
Net Investment Loss (167,366)
Total Additions 1,627,680
Deductions
Benefits paid 239,419
Transfer to ICMA share plan 12,887
Administrative expenses 50,080
Total Deductions
Change in Net Assets
Net Assets - Beginning
Net Assets - Ending
302,386
1,325,294
13,988,686
$ 15,313,980
7
7
The accompanying notes are an integral part of these financial statements.
20
7
r
r
NOTES TO BASIC FINANCIAL STATEMENTS
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2011
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 of America (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 defusing 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.
21
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2011
NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
B. GOVERNMENT -WIDE AND FUND FINANCIAL STATEMENTS (CONTINUED)
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.
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.
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.
22
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2011
NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
r
r
171
1
C. MEASUREMENT Focus, BASIS OF ACCOUNTING, AND FINANCIAL STATEMENT
PRESENTATION (CONTINUED)
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.
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 Transportation Special Revenue Fund accounts for the revenues received from the
transportation surtax and expenditures restricted for related transportation costs.
The Capital Improvement Fund accounts for the acquisition or construction of various
major capital projects.
The Village reports the following major proprietary funds in the basic financial statements:
The Stormwater Utility Fund accounts for the construction and maintenance of the
Village's stormwater system.
The Sanitary Sewer Fund accounts for the development and construction of a municipal
sanitary sewer system to the unsewered areas of the community.
The Solid Waste Fund accounts for the provision of solid waste disposal services to
Village residents and businesses.
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.
23
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2011
NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
C. MEASUREMENT FOCUS, BASIS OF ACCOUNTING, AND FINANCIAL STATEMENT
PRESENTATION (CONTINUED)
rrft
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.
Elimination of these charges would distort the direct costs and program revenues reported
for the various functions concerned.
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 nonoperating 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.
24
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2011
NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
D. ASSETS, LIABILITIES, AND NET ASSETS OR EQUITY
1. Deposits and Investments
The Village's cash and cash equivalents include cash on hand, certificates of deposit
with original maturities of three months or less from the date of acquisition and a
repurchase agreement. All other investments, including pension investments, are
recorded at fair value. Fair value is determined by quoted market prices.
The Village's and pension plan's investments are governed by their respective
investment policies.
2. Interfimd Receivables and Payables
Activities 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".
3. Receivables
Receivables include amounts due from other governments and others for services
provided by the Village. Receivables are recorded and revenues are recognized as
earned or as specific program expenditures/expenses are incurred. Allowances, if any,
for uncollectible receivables are based upon historical trends and the periodic aging of
receivables.
4. Capital Assets
Capital assets, which include property, plant and equipment, and 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. Tangible and intangible 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. All infrastructure assets have been capitalized
since inception of the Village.
25
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2011
NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
D. ASSETS, LIABILITIES, AND NET ASSETS OR EQUITY (CONTINUED)
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 2011.
Intangible assets consist of computer software, which was capitalized as an asset in
prior years, and rights of way. The Village elected not to retroactively report all
intangible assets.
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
1.7
5. Unearned/Deferred Revenue
Deferred revenue is recorded for governmental fund receivables that are not both
measurable and available. In addition, inflows that do not yet meet the criteria for
revenue recognition, such as occupational licenses and community center membership
dues collected in advance, are recorded as unearned revenue in the government -wide
and the fund financial statements.
6. 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, 2011 and were subsequently
26
I
P
711
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2011
NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
D. ASSETS, LIABILITIES, AND NET ASSETS OR EQUITY (CONTINUED)
6. Compensated Absences (continued)
paid with current available financial resources. The general fund typically is used to
liquidate the liability for compensated absences.
7. 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.
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.
8. Use of Estimates
The preparation of financial statements in conformity with accounting principles
generally accepted in the United States of America 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
collectability 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.
r
27
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2011
NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
D. ASSETS, LIABILITIES, AND NET ASSETS OR EQUITY (CONTINUED)
9. Fund Equity
The Village has implemented GASB Statement No. 54, Fund Balance Reporting and
Governmental Fund Type Definitions. This Statement establishes criteria for
classifying governmental fund balances into specifically defined classifications.
Classifications are hierarchical and are based primarily on the extent to which the
Village is bound to honor constraints on the specific purposes for which amounts in the
funds may be spent. Application of the Statement requires the Village to classify and
report amounts in the appropriate fund balance classifications. The Village's
accounting and finance policies are used to interpret the nature and/or requirements of
the funds and their corresponding assignment of restricted, committed, assigned or
unassigned.
The Village reports the following classifications:
Nonspendable fund balance. Nonspendable fund balances are amounts that are (a) not
in spendable form or (b) legally or contractually required to be maintained intact.
Restricted fund balance. Restricted fund balances are amounts that can be spent only
for specific purposes stipulated by (a) external resource providers such as creditors (by
debt covenants), grantors, contributors, or laws or regulations of other governments; or
(b) imposed by law through constitutional provisions or enabling legislation.
Committed fund balance. These amounts can only be used for the specific purposes
determined by a formal action (Ordinance/Resolution) of the Village Council, the
Village's highest level of decision making authority. Commitments may be changed or
lifted only by the Village Council taking the same formal action (Ordinance/Resolution)
that imposed the constraint originally. Resources accumulated pursuapt to stabilization
arrangements sometimes are reported in this category.
Assigned fund balance. Assigned fund balances are amounts that are constrained by the
Village's intent to be used for specific purposes, but are neither restricted nor
committed. Intent is established by management of the Village to which the Council
has delegated the authority to assign, modify or rescind amounts to be used for specific
purposes. This balance includes (a) all remaining amounts that are reported in
governmental funds (other than the General Fund) that are not classified as
nonspendable, restricted, or committed, and (b) amounts in the General Fund that are
1
28
r
r
r
t
P
i
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2011
NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
D. ASSETS, LIABILITIES, AND NET ASSETS OR EQUITY (CONTINUED)
9. Fund Equity (continued)
intended to be used for a specific purpose. Specific amounts that are not restricted or
committed in a special revenue fund are assigned for the purposes in accordance with
the nature of their fund type. Assignment within the General Fund conveys that the
intended use of those amounts is for a specific purpose that is narrower than the general
purposes of the Village itself.
Additionally, the Village would first use committed fund balance, followed by assigned
fund balance when expenditures are incurred for purposes for which amounts in any of
the unrestricted fund balance classifications could be used.
See Note 12 for the detail of the amounts included in the various fund balance
classifications.
10. Net Assets
Net assets of the government -wide and proprietary funds are categorized as invested in
capital assets, net of related debt; restricted or unrestricted. Invested in capital assets,
net of related debt, is that portion of net assets that relates to the Village's capital assets
reduced by accumulated depreciation and by any outstanding debt incurred to acquire,
construct or improve those assets, excluding unexpended proceeds.
Restricted net assets is that portion of net assets that has been restricted for general use
by external parties (creditors, grantors, contributors, or laws or regulations of other
governments) or imposed by law through constitutional provisions or enabling
legislation. Unrestricted net assets consist of all net assets that do not meet the
definition of either of the other two components.
29
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2011
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 $30,902,870 difference is as
follows:
Bonds Payable $ 27,757,222
Debt Issuance Costs (200,000)
Capital Leases Payable 355,205
Compensated Absences 2,568,549
Accrued Interest Payable 181,014
Net OPEB Obligation 240,880
$ 30,902,870
NOTE 3 — 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 deemed as insured or collateralized.
The Village invests in certificates of deposit. The certificates bear an interest rate ranging
from .07% to 1.2%. There are certificates of deposit with maturities of 90 days or less
totaling $2,001,176 which are presented as cash equivalents in the accompanying financial
statements. There are certificates of deposit with maturities ranging from 120 days to 730
days totaling $11,007,623 which are presented as investments in the accompanying
financial statements.
1,117
1
30
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2011
NOTE 3 — DEPOSITS AND INVESTMENTS (CONTINUED)
INVESTMENTS
The Village's investment policy follows the requirements of Florida Statutes Chapter
218.415, and attempts to promote, in order of priority, safety of principal, adequate
liquidity, and maximization of total return. The Village's investment policy authorizes
investments in direct obligations of the U.S. Government, its agencies or instrumentalities.
The Village is also authorized to invest in SEC registered money market mutual funds,
insured or fully collateralized deposits, repurchase agreements secured by direct obligations
of the U.S. Government, and authorized intergovernmental investment pools. 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 Village maintains
a separate investment policy for its pension plan.
For the Town's pension plan, a Master Custodian Agreement is maintained whereby the
investment securities are held in the Plan's name by a financial institution acting as the
Plan's agent.
INVESTMENTS— VILLAGE
As of September 30, 2011, the Village had the following investments with its corresponding
maturities in its portfolio:
Investment Maturities
(In Years)
F
FPI
Investments
Repurchase Agreements
Fair Less
Value Than 1
$ 1,087,497 $ 1,087,497
Interest Rate Risk
Interest rate risk refers to the portfolio's exposure to fair value losses arising from increasing
interest rates. The Village's investment policy limits the maturities on fixed income
holdings in the general and special revenue funds to two years and capital projects funds
shall not exceed the lesser of the anticipated expenditures schedule or five years.
Credit Risk
State law and the Village's investment policy limits investments in bonds, U.S. treasuries
and agency obligations, or other evidences of indebtedness to the top ratings issued by
nationally recognized statistical rating organizations of the United States. The Village is
currently not invested in any of these types of investments.
31
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2011
NOTE 3 — DEPOSITS AND INVESTMENTS (CONTINUED)
INVESTMENTS— VILLAGE (CONTINUED)
Custodial Credit Risk
For an investment, custodial credit risk is the risk that, in the event of the failure of the
counterparty, the Village will not be able to recover the value of its investments or collateral
securities that are in the possession of an outside party. The Village's $5.8 million
investment in repurchase agreements is held by the investment's counterparty, not in the
name of the Village. The Village's investment policy does not have a limit on holding of
securities by counterparties.
INVESTMENTS — PENSION PLAN
As of September 30, 2011, the Village's Defined Benefit Pension Plan had the following
investments with its corresponding maturities in its portfolio:
Investment Maturities (In Years)
Fair Less
Investments Value Than 1 1-5 6-10 10+
Bond Mutual Funds $ 5,683,769 $ 430,773 $ 2,936,855 $ 1,624,780 $ 691,361
Interest Rate Risk
Interest rate risk refers to the portfolio's exposure to fair value losses arising from increasing
interest rates. The Plan does not have a formal investment policy that limits investment
maturities as a means of managing its exposure to market value losses arising from
increasing interest rates.
Credit Risk
State law and the Plan's investment policy limits investments in bonds, stocks, or other
evidences of indebtedness issued or guaranteed by a corporation organized under the laws
of the United States, any state or organized territory of the United States, or the District of
Columbia, provided the corporation is listed on any one or more of the recognized national
stock exchanges or on the National Market System of the NASDAQ Stock Market and in
the case of bonds only, holds a rating in one of the three highest classifications by a major
rating service. The Plan's investment policy limits fixed income securities to a rating no
lower than Standard & Poor's BBB or Moody's BAA.
The Plan's bond mutual funds were all rated "A" or better under Standard & Poor's ratings.
32
r
r
e
7771
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2011
NOTE 3 — DEPOSITS AND INVESTMENTS (CONTINUED)
INVESTMENTS — PENSION PLAN (CONTINUED)
Concentration of Credit Risk
The Plan's investment policy prohibits equity and fixed income securities concentrations
greater than 5% and 10%, respectively, in any one issuer with the exception of U.S.
government or agency issues. As of September 30, 2011, the value of each position held in
the Plan's portfolio comprised less than 5% of Plan investment assets.
RISKS AND UNCERTAINTIES
The Village and the Plan invest in various investment securities. Investment securities are
exposed to various risks such as interest rate, market, and credit risks. Due to the level of risk
associated with certain investment securities, it is at least reasonably possible that changes in
the values of investment securities will occur in the near term and that such changes could
materially affect the amounts reported in the financial statements. The Village and the Plan,
through its investment advisor, monitors the investments and the risks associated therewith on
a regular basis which the Village and the Plan believes minimizes these risks.
Plan contributions are made and the actuarial present value of accumulated plan benefits are
reported based on certain assumptions pertaining to interest rates, inflation rates and employee
demographics, all of which are subject to change. Due to uncertainties inherent in the
estimations and assumptions process, it is at least reasonably possible that changes in these
estimates and assumptions in the near term would be material to the financial statements.
NOTE 4 — RECEIVABLES
Receivables as of September 30, 2011 for the Village's individual major funds, non -major
funds and fiduciary fund in the aggregate, including the allowances for uncollectible
accounts, are as follows:
Special Capital Storm- Solid Pension
General Revenue Improvements water Waste Trust Fund Total
Customers Billed $ -- $ $ -- $ 556,299 $ 212,702 5 -- $ 769,001
Contributions — — 42,694 42,694
Property Taxes 340,230 -- -- -- 340,230
Intergovernmental 351,132 121,351 8,247 — 480,730
Other 213,484 — -- — 213,484
Gross Receivables 904,846 121,351 8,247 556,299 212,702 42,694 1,846,139
Less: Allowance for
Uncollectibles — — — (21,639) (21,639)
Net Total Receivables $ 904,846 $ 121,351 S 8,247 S 556,299 5 191,063 5 42,694 S 1,824,500
33
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2011
NOTE 5 — PROPERTY TAXES
Property values are assessed on a county -wide basis by the Miami -Dade County Property
Appraiser as of January 1, the lien date, of each year and are due the following November 1.
Taxable value of property within the Village is certified by the Property Appraiser and the
Village levies a tax millage rate upon the taxable value, which will provide revenue
required for the fiscal year beginning October 1. The millage rate assessed by the Village
for the year ended September 30, 2011 was 3.2000.
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, 2011, there were no material delinquent taxes.
NOTE 6 — INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS
The composition of interfund balances as of September 30, 2011 is as follows:
Due from/to other funds:
Receivable Fund Payable Fund Amount
General Special Revenue $ 1,213,340
Stormwater 685,480
Solid Waste General 1,695
$ 1,900,515
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) ""°I
transactions are recorded in the accounting system, and (3) payments between funds are
made.
r"
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2011
NOTE 6—INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS (CONTINUED)
Interfund transfers:
1
fr
p
Transfers Out
General Fund
Sanitary Sewer
Transfer In
Sanitary Sewer
Solid Waste
Amount
$ 28,134
300,000
$ 328,134
Transfers are used to move unrestricted general fund revenues to finance various capital
projects in accordance with budgetary authorizations.
NOTE 7 — CAPITAL ASSETS
Capital asset activity for the year ended September 30, 2011 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
Beginning
Balance
Increases
Ending
Decreases Balance
$ 21,833,837 $ -- $ -- $ 21,833,837
13,934,001 651,646 (11,982,462) 2,603,185
35,767,838 651,646 (11,982,462) 24,437,022
24,590,982 31,466
17,237,666 12,597,190
6,808,568 547,110
48,637,216 13 ,175, 766
(3,890,576) (497,589)
(4,428,251) (430,656)
(4,609,381) (707,987)
(12,928,208) (1,636,232)
35,709,008 11,539,534
-- 24,622,448
-- 29,834,856
(352,002) 7,003,676
(352,002) 61,460,980
352,002
(4,388,165)
(4,858,907)
(4,965,366)
352,002 (14,212,438)
47,248,542
$ 71,476,846 $ 12,191,180 $ (11,982,462) $ 71,685,564
35
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2011
NOTE 7— CAPITAL ASSETS (CONTINUED)
Business -type Activities
Capital Assets, Not Being Depreciated
Construction in progress
Total Capital Assets, Not Being Depreciated
Capital Assets, Being Depreciated
Stormwater utility system
Sanitary Sewer 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
Ending
Balance
Ending
Increases Decreases Balance
$ 19,322,430 $ 59,901 $ (19,101,338) $ 280,993
19,322,430
59,901 (19,101,338) 280,993
10,056,660 293,080
-- 18,808,259
10,056,660 19,101,339
(3,552,567) (288,567)
(3,552,567) (288,567)
6,504,093 18,812,772
10,349,740
18,808,259
29,157,999
(3,841,134)
(3,841,134)
25,316,865
$ 25,826,523 $ 18,872,673 $ (19,101,338) $ 25,597,858
Depreciation expense was charged as functions/programs of the primary government as
follows:
Governmental Activities
General government
Police
Fire
Public works
Building, zoning and planning
Parks
Total Depreciation Expense - Governmental Activities
Business -type Activities
Stormwater
$ 544,342
343,844
295,887
7,658
11,762
432,739
$ 1,636,232
$ 288,567
1
ow -
36
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2011
NOTE 8 — 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, 2011:
Beginning Ending Due Within
Balance Additions Reductions Balance One Year
Governmental Activities
Bonds Payable
Land acquisition and capital improvement
revenue bonds, Series 1999 $ 6,610,000 $ $ (525,000) $ 6,085,000 $ 550,000
Land acquisition and capital improvement
revenue bonds, Series 2000 7,430,000 (7,430,000)
Capital improvement revenue refunding
bonds, Series 2011A -- 6,890,000 -- 6,890,000 550,000
Capital improvement bonds, Series 2002 7,540,914 -- (7,540,914) -- --
Capital improvement revenue refunding
bonds, Series 201113 7,130,000 — 7,130,000 560,000
Land acquisition and capital improvement
revenue bonds, Series 2004 2,153,011 (2,153,011)
Capital improvement and land acquisition
revenue refunding bonds, Series 2011 1,865,000 1,865,000 140,000
Transportation tax revenue bonds,
Series 2005 3,007,829 (3,007,829)
Transportation tax revenue refunding
bonds, Series 2011 2,808,952 2,808,952 174,191
Road improvement revenue bonds,
Series 2006 3,208,924 (230,654) 2,978.270 239,376
Total Bonds Payable 29,950,678 18,693,952 (20,887,408) 27,757.222 2,213,567
Other Liabilities
Capital leases 186,012 321,681 (152,488) 355,205 152,488
Compensated absences 2,423,845 1,335,597 (1,190,893) 2,568,549 256,855
Total Other Liabilities 2,609,857 1,657,278 (1,343,381) 2,923,754 409,343
Governmental Activities Long -Term Liabilities $ 32,560,535 $ 20,351,230 $ (22,230,789) $ 30,680,976 S 2,622,910
Long-term obligations related to governmental activities are generally liquidated from the
general fund.
LAND ACQUISITION AND CAPITAL IMPROVEMENTRE VENUE BONDS, SERIES 1999
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 with final payment due on December 1, 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.
37
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2011
NOTE 8 — LONG-TERM DEBT (CONTINUED)
LAND ACQUISITION AND CAPITAL IMPROVEMENT REVENUE BONDS, SERIES 1999
(CONTINUED)
Debt service requirements to maturity are as follows:
Principal Interest Total
Fiscal Year Ending September 30
2012 $ 550,000 $ 273,942 $ 823,942
2013 580,000 247,302 827,302
2014 610,000 219,247 829,247
2015 640,000 189,779 829,779
2016 670,000 158,865 828,865
2017-2020 3,035,000 453,701 3,488,701
$ 6,085,000 $ 1,542,836 $ 7,627,836
LAND ACQUISITION AND CAPITAL IMPROVEMENT REVENUE BONDS, SERIES 2000
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 were
refunded during fiscal year 2011, through the issuance of the Capital Improvement Revenue
Refunding Bonds, Series 2011A.
CAPITAL IMPROVEMENT REVENUE REFUNDING BONDS, SERIES 2011A
On June 13, 2011, the Village issued $6,890,000 of Capital Improvement Revenue
Refunding Bonds, Series 2011A for the purpose of refunding the Village's 10,000,000
Capital Improvement Revenue Bonds, Series 2000. The bonds mature on December 1,
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 on each
December 1, commencing December 1, 2011. Interest accrues at 2.31% per annum.
38
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2011
NOTE 8 — LONG-TERM DEBT (CONTINUED)
CAPITAL IMPROVEMENT REVENUE REFUNDING BONDS, SERIES 2011A (CONTINUED)
Debt service requirements to maturity are as follows:
Principal Interest Total
Fiscal Year Ending September 30
2012
2013
2014
2015
2016
2017-2020
$ 550,000
645,000
660,000
670,000
690,000
3,675,000
$ 132,027
139,004
123,931
108,570
92,862
216,044
$ 6,890,000 $ 812,438
CAPITAL IMPROVEMENT REVENUE BONDS, SERIES 2002
$ 682,027
784,004
783,931
778,570
782,862
3,891,044
$ 7,702,438
On November 1, 2002, the Village issued Capital Improvement Revenue Bonds, Series
2002 for the purpose of financing a portion of the cost of construction and equipping of a
community center including a parking garage and swimming pool. The bonds were
refunded during fiscal year 2011, through the issuance of the Capital Improvement Revenue
Refunding Bonds, Series 2011B.
CAPITAL IMPROVEMENTS REVENUE REFUNDING BONDS, SERIES 2011 B
On August 1, 2011 the Village issued $7,130,000 of Capital Improvement Revenue
Refunding Bonds, Series 2011B for the purpose of refunding the Village's Capital
Improvement Revenue Bonds, Series 2002. The bonds mature on November 1, 2022. The
Village has pledged non -ad valorem revenues to secure payment of the principal and
interest on the bonds. The bonds bear interest on the outstanding principal balance from its
date of issuance payable quarterly on the first day of each February, May, August and
November commencing November 1, 2011, at an interest rate equal to 2.41% per annum.
39
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2011
NOTE 8 — LONG-TERM DEBT (CONTINUED)
CAPITAL IMPROVEMENTS REVENUE REFUNDING BONDS, SERIES 2011B (CONTINUED)
Debt service to maturity is as follows:
Principal Interest Total
Fiscal Year Ending September 30
2012 $ 560,000 $ 166,772 $ 726,772
2013 560,000 153,276 713,276
2014 595,000 139,358 734,358
2015 605,000 125,019 730,019
2016 605,000 110,438 715,438
2017-2021 3,305,000 320,169 3,625,169
2022-2023 900,000 16,237 916,237
$ 7,130,000 $ 1,031,269 $ 8,161,269
LAND ACQUISITION AND CAPITAL IMPROVEMENT REVENUE BONDS, SERIES 2004
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 bonds were refunded during fiscal year 2011, through the issuance of the Capital
Improvement and Land Acquisition Revenue Refunding Bonds, Series 2011.
1"
CAPITAL IMPROVEMENT AND LAND ACQUISITION REVENUE REFUNDING BONDS, SERIES
2011
On August 1, 2011 the Village issued the $1,865,000 Capital Improvement and Land
Acquisition Revenue Refunding Bonds, Series 2011 for the purpose of refunding the
Capital Improvement and Land Acquisition Revenue Bonds, Series 2004. The Village has
pledged non -ad valorem revenues to secure payment of the principal and interest on the
bonds. The bonds mature on November 1, 2022. The bonds bear interest on the
outstanding principal balance from its date of issuance payable quarterly on the first day of
each February, May, August and November, commencing November I, 2011, at an interest
rate equal to 2.41% per annum.
I-
40
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2011
7
NOTE 8 —LONG-TERM DEBT (CONTINUED)
CAPITAL IMPROVEMENT AND LAND ACQUISITION REVENUE REFUNDING BONDS, SERIES
2011 (CONTINUED)
Debt service requirements to maturity are as follows:
Principal Interest Total
Fiscal Year Ending September 30
2012 $ 140,000 $ 43,681 $ 183,681
2013 145,000 40,217 185,217
2014 155,000 36,572 191,572
2015 155,000 32,836 187,836
2016 170,000 28,980 198,980
2017-2021 870,000 84,230 954,230
2022-2023 230,000 4,218 234,218
$ 1,865,000 $ 270,734 $ 2,135,734
TRANSPORTATION TAX REVENUE BONDS, SERIES 2005
On July 15, 2005, the Village issued Transportation Tax Revenue Bonds, Series 2005, for
the purpose of financing a portion of the costs of road improvements within the Village
(Crandon Boulevard Improvements — Phase II). The issuance was established similar to
bond anticipation notes where the principal amount is the lesser of $3,500,000 or the
advances made under the bond. The bonds were refunded during fiscal year 2011, through
the issuance of the Transportation Tax Revenue Refunding Bonds, Series 2011.
TRANSPORTATION TAX REVENUE REFUNDING BONDS, SERIES 2011
On September 30, 2011, the Village issued $2,808,952 of Transportation Tax Revenue
Refunding Bonds, Series 2011 for the purpose of refunding the Transportation Tax Revenue
Bonds, Series 2005. The Village has pledged Transportation Surtax Revenues and Local
Option Gas Tax revenues to secure payment of the principal and interest on the bonds in the
amounts of $365,492 and $ 216,741, respectively. The bonds mature on July 1, 2025. The
bonds bear interest on the outstanding principal balance from its date of issuance payable
quarterly on each January 1, April 1, July 1 and October 1 commencing January 1, 2012, at
an interest rate equal to 2.42% per annum.
41
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2011
NOTE 8 -LONG-TERM DEBT (CONTINUED)
TRANSPORTATION TAX REVENUE REFUNDING BONDS, SERIES 2011 (CONTINUED)
Debt service requirements to maturity are as follows:
Principal Interest Total
Fiscal Year Ending September 30
2012
2013
2014
2015
2016
2017-2021
2022-2025
$ 174,191
178,637
182,999
187,468
192,046
1,032,911
860,700
$ 66,594 $ 240,785
62,148 240,785
57,786 240,785
53,317 240,785
48,739 240,785
171,014 1,203,925
42,244 902,944
$ 2,808,952 $ 501,842
ROAD LMMPROVEMENT REVENUE BONDS, SERIES 2006
$ 3,310,794
On December 14, 2006, the Village issued $4,000,000 Road Improvement Revenue Bonds,
Series 2006, for the purpose of financing a portion of the costs of road improvements within
the Village (Crandon Boulevard Improvements - Phase III), financing architectural,
engineering, environmental, legal, and other planning costs. The bonds mature on
December 1, 2021. The Village has pledged toll revenues to secure payment of the
principal and interest on the bonds. Total principal and interest remaining on the bonds is
$3,658,307. For the current year, debt service and pledged revenues were $357,125 and
$365,000, respectively. The bonds are due in quarterly principal installments. Interest
accrues at 4.05% per annum.
Debt service requirements to maturity are as follows:
Fiscal Year Ending September 30
2012
2013
2014
2015
2016
2017-2021
2022
Principal
Interest Total
$ 239,376
248,602
258,185
268,137
278,472
1,561,881
123,617
$ 2,978,270
$ 116,965 $
107,131
96,918
86,312
75,297
195,807
1,607
356,341
355,733
355,103
354,449
353,769
1,757,688
125,224
$ 680,037 $ 3,658,307
42
r
r
r
rTA
ern
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2011
NOTE 8 —LONG-TERM DEBT (CONTINUED)
CAPITAL LEASES
On January 20, 2011, the Village entered into a lease purchase agreement to finance the
purchase of thirteen (13) police vehicles at a market value of $321,681, and refinance seven
(7) police vehicles with a market value of $137,243. These lease purchase agreements
qualify as capital leases for accounting purposes. The lease payments on the financed
vehicles are due on January 20th each year through the maturity date of January 25, 2014,
and for the refinanced vehicles are due on January 20th each year through the maturity date
of January 25, 2013 at an annual financial cost of 2.0%. At September 30, 2011, the lease
obligation was $355,205.
Assets
Machinery and equipment $ 607,271
Accumulated depreciation (180,549)
$ 426,722
Future minimum lease payments and the present value of net minimum lease payments as of
September 30, 2011 are as follows:
Fiscal Year Ending September 30
2012 $ 152,488
2013 137,094
2014 81,621
Total minimum lease payments 371,203
Less: amount representing interest 15,998
$ 355,205
r
43
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2011
NOTE 8 — LONG-TERM DEBT (CONTINUED)
The following is a summary of changes in long-term liabilities of the Village for business -
type activities for the year ended September 30, 2011:
Business -type Activities
Bonds and Loans Payable
Stormwater utility revenue
bonds, Series 1999
Stormwater utility revenue
refunding bond, Series 2011
Revolving loan, 1996
Revolving loan, 2009
Total Bonds and Loans Payable
Business -type Activities
Long -Term Liabilities
Beginning
Balance
Ending Due Within
Additions Reductions Balance One Year
$ 4,450,000 $
300,382
4,395,430
9,145,812
-- $ (4,450,000) $
4,450,000 (320,000)
(20,602)
48,968 (226,790)
4,498,968 (5,017,392)
4,130,000
279,780
4,217,608
8,627,388
$
Mir
475,000
21,133
199,451
695,584
$ 9,145,812 $ 4,498,968 $ (5,017,392) $ 8,627,388 $ 695,584
STORMWATER UTILITY REVENUE BONDS, SERIES 1999
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 were refunded during fiscal year 2011, through
the issuance of the Stormwater Utility Revenue Refunding Bonds, Series 2011.
STORMWATER UTILITY REVENUE REFUNDING BONDS, SERIES 2011
On July 18, 2011 the Village issued $4,450,000 Stormwater Utility Revenue Refunding
Bonds, Series 2011 for the purpose of refunding the Stormwater Utility Revenue Bonds,
Series 1999. The Village has pledged stormwater utility fees and non -ad valorem revenues
to secure payment of the principal and interest on the bonds. The bonds mature on October 1,
2019. The Bonds bear interest on the outstanding principal balance from their date of
issuance payable semiannually on each April 1 and October 1 commencing October 1,
2011, at an interest rate equal to 2.39% per annum.
1
44
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2011
NOTE 8 - LONG-TERM DEBT (CONTINUED)
STORMWATER UTILITY REVENUE REFUNDING BONDS, SERIES 2011 (CONTINUED)
Debt service requirements to maturity are as follows:
Principal Interest Total
Fiscal Year Ending September 30
2012
2013
2014
2015
2016
2017-2019
STATE REVOLVING FUND LOAN, 1996
$ 475,000
485,000
500,000
510,000
520,000
1,640,000
$ 98,707
87,355
75,763
63,813
51,624
78,990
$ 573,707
572,355
575,763
573,813
571,624
1,718,990
$ 4,130,000 $ 456,252 $ 4,586,252
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 loan is secured by the state revenue
sharing funds. Debt service for fiscal year 2011 was $28,134 and state revenue sharing was
$205,876. 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.
Debt service requirements to maturity are as follows:
Fiscal Year Ending September 30
2012
2013
2014
2015
2016
2017-2021
2022-2023
Principal Interest Total
$ 21,133 $ 7,001 $ 28,134
21,677 6,457 28,134
22,236 5,898 28,134
22,809 5,325 28,134
23,396 4,738 28,134
126,340 14,331 140,671
42,189 1,058 43,247
$ 279,780 $ 44,808 $ 324,588
45
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2011
NOTE 8 — LONG-TERM DEBT (CONTINUED)
STATE REVOLVING FUND LOAN, 2009
In June 2009, the Village entered into a revolving loan agreement with the State of Florida
Department of Environmental Protection in an amount up to $5,150,000 plus $65,500 for a
total of $5,215,500 for the financing of the sanitary sewer construction project. Total
principal due under the loan was $5,318,500 which included loan servicing fees. The
principal total outstanding at September 30, 2011 is $4,217,608. The amortization schedule
herein represents the total debt service to be paid under this loan agreement once all
amounts are borrowed. Proceeds in the amount of $2,448,947 were received during the
2010 fiscal year and $12,534 was received during the 2011 fiscal year. The loan is secured
by the communications service tax. Total debt service for fiscal year 2011 was $368,347
and the pledged revenue was $1,011,971. The loan is payable in semi-annual payments
over 20 years beginning on August 15, 2010 and is payable each August 15 and February
15 at an interest rate of 3.39% per annum. The loan matures on February 15, 2030.
Debt service requirements to maturity are as follows:
Fiscal Year Ending September 30
2012
2013
2014
2015
2016
2017-2021
2022-2026
2027-2030
Principal Interest Total
$ 199,451
206,270
213,322
220,615
228,157
1,263,259
1,494,474
1,206,069
$ 168,896 $ 368,347
162,077 368,347
155,025 368,347
147,732 368,347
140,190 368,347
578,477 1,841,736
347,262 1,841,736
83,146 1,289,215
$ 5,031,617 $ 1,782,805 $ 6,814,422
}
rvAs
46
f
P
r
r
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2011
NOTE 9 — DEFEASED DEBT
During the year, the Village refinanced five of its outstanding bonds as summarized in the
following table. The refunding involved the issuance of new debt whose proceeds were used
to immediately repay previously issued ("old") debt (a current refunding).
Series
Old Debt Defeased New Refunding Debt Issued
Principal Principal
Amount Interest Amount Interest Cash Flow Economic
Retired Rates Series Dated Issued Rates Savings Gain
Governmental Activities
2000 $7,430,000 5.24% 201IA 6/13/2011 $6,890,000 2.31% $1,048,575 $933,432
2002 7,540,914 3.59% 2011B 8/1/2011 7,130,000 2.41% 486,484 418,595
2004 2,153,011 3.83% 2011 8/1/2011 1,865,000 2.41% 120,291 98,637
2005 3,007,829 4.09% 2011 9/30/2011 2,808,952 2.42% 325,611 268,677
Business -Type Activities
1999 4,450,000 4.13% 2011 7/18/2011 4,450,000 2.39% 305,060 278,153
Upon issuance of the current refunding, the debt defeased was removed from the face of the
financial statements.
NOTE 10 — COMMITMENTS AND CONTINGENCIES
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.
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.
47
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2011
NOTE 11— DEFICIT FUND BALANCE
The Transportation Special Revenue Fund has a deficit fund balance of $1,077,816 which is
being funded from the General Fund and from revenues derived from an interlocal
agreement with Miami -Dade County over a period of approximately 11 years.
NOTE 12 —FUND BALANCE CLASSIFICATIONS
As of September 30, 2011, fund balances in the general fund have been set aside for the
following purposes. The Village, by its charter, cannot have any unassigned fund balance,
therefore, many of the commitments/assignments are established to fund current operations,
such as working capital.
Nonspendable
Prepaids
$ 305,730
305,730
Restricted
Building inspections 720,689
Fire code violations 102,918
Fire grant revenue (UASI) 73,960
Law enforcement seizures 272,680
1,170,247
Committed
Capital improvement plan 3,716,860
Capital lease 98,654
Emergencies 4,000,000
Fire rescue transport fees 625,017
Fire station building reserve 10,257
Fire vehicle replacements 50,000
Labor negotiations 90,000
Master plan initiatives 1,707,275
Open space land trust 1,000,000
Playing fields 326,367
Police/administrative building reserve 13,632
Recreation facilities 226,162
Roadway improvements 175,000
12,039,224
48
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2011
NOTE 12 —FUND BALANCE CLASSIFICATIONS (CONTINUED)
Assigned
Compensated absences 477,204
Police pension 2,562
Working capital (surplus) 3,549,104
4,028,870
Total Fund Balance $ 17,544,071
NOTE 13 — 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). The plans are administered by a third party administrator.
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 14), were no
longer eligible to contribute to the 401(a) plan. Employer contributions for the fiscal year
ended September 30, 2011 were $704,156 while the employee contributions were $162,544.
Amendments to the Plan must be authorized by the Village Council.
SHARE PLAN
L
In fiscal year 2009, the Village created a SHARE Plan for firefighters. The Plan is a
defined contribution plan and is funded by premium tax revenues from the State of Florida
in excess of the amounts used to satisfy funding requirements of the defined benefit plan of
the firefighters (see Note 14).
During fiscal year 2011, the Village did not transfer any funds from their defined benefit
pension plan to the SHARE plan. The Plan is administered by ICMA Retirement
Corporation. Benefits are paid to vested participants in a single lump sum or in equal
installments. The balance of the SHARE Plan at September 30, 2011 is $ 748,778.
49
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2011
NOTE 14 — 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, 2010. 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.
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, or at age 50 with 5 years of service with the
benefit discounted 3% for each year under age 55.
Administrative costs of the plan are financed through investment earnings. Benefits and
refunds are recognized when due and payable in accordance with the terms of the plan.
Benefits and funds are recorded when paid.
At October 1, 2010 (date of the latest actuarial valuation), Plan membership consisted of the
following:
Retirees and Beneficiaries Currently Receiving Benefits and Terminated
Employees Entitled to Benefits but Not Yet Receiving Them
Current Employees
Vested
Non -vested
19
43
22
Total 65
I
n
50
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2011
NOTE 14 — DEFINED BENEFIT PENSION PLAN (CONTINUED)
FUNDING POLICY
The Village's contribution rate is adjusted each year to an amount equal to the total pension
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 Village's (including the State) contribution rate was 15.97% of covered
payroll for the year ended September 30, 2011 which was determined by the October 1,
2009 actuarial valuation. The participant contribution rate which is fixed by ordinance is
10.5%. This funding policy is designed to limit the Village's exposure to contribute to the
Plan. State contributions are recognized as a revenue and expenditure in the general fund.
FUNDED STATUS AND FUNDING PROGRESS
The funded status of the plan as of October 1, 2010, the most recent actuarial valuation date,
is as follows:
Actual
Valuation
Date
10/1/2010
Actuarial
Value of
Assets
(a)
$ 14,625,108
Actuarial
Accrued Liability
(AAL) - Entry Age
(b)
$ 20,284,931
Unfunded
AAL
(UAAL)
(b) - (a)
$ 5,659,823
UAAL
As%of
Funded Covered Covered
Ratio Payroll Payroll
(a) / (b) (c) (b - a) / c
72.1% $ 6,663,025 84.9%
The schedule of funding progress, presented as required supplementary information (RSI)
following the notes to the financial statements, presents multiyear trend information about
whether the actuarial value of plan assets are increasing or decreasing over time relative to
the AAL for benefits.
Additional information as of the latest actuarial valuation follows:
Valuation Date
Contribution Rates
Employer (and State)
Plan members
Actuarial Cost Method
Amortization Method
Remaining Amortization
Asset Valuation Method
10/1/10
15.94%
10.50%
Entry age normal
Level percent of pay, closed
30 years
5 year Smoothed Market value
51
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2011
NOTE 14 — DEFINED BENEFIT PENSION PLAN (CONTINUED)
FUNDED STATUS AND FUNDING PROGRESS (CONTINUED)
Actuarial Assumptions
Investment rate of return*
Projected salary increases*
Cost of living adjustments
8.5% per year compounded annually,
net of investment related expenses
9.4% to 3.5% variable
Not Applicable
*Includes inflation and other general increases at 4%
ANNUAL PENSION COST AND NET PENSION ASSET
The annual pension cost and net pension obligation (asset) for the current year was as
follows:
Annual Required Contribution
Interest on Net Pension Asset
Adjustment to Annual Required Contribution
Annual Pension Cost
Contributions Made
Decrease in Net Pension Asset
Net Pension Asset - Beginning of Year
Net Pension Asset - End of Year
$ 1,152,543
(10,973)
(17,167)
1,124,403
1,135,705
(11,302)
(129,093)
$ (140,395)
The annual required contribution for the current year was determined as part of the October 1,
2009 actuarial valuation using the entry age normal funding method.
Fiscal Year
Ended
9/30/2009
9/30/2010
9/30/2011
Trend Information
Annual Percentage
Pension of APC
Cost (APC)
$ 964,096
973,125
1,124,403
Contributed
99.5%
101.3%
101.0%
Net Pension
Obligation
(Asset)
$ (116,341)
(129,093)
(140,395)
52
1
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2011
NOTE 14 — DEFINED BENEFIT PENSION PLAN (CONTINUED)
DROP PLAN
In fiscal year 2009, the Village created a deferred retirement option plan (DROP) for the
benefit of the firefighters that have reached their normal retirement date. Election in the
DROP is voluntary. The maximum period of participation is five years. The DROP is
funded by the participants' retirement benefit that would be received if the participant had
retired on the election date plus earnings thereon. Retirement benefits can be paid in a
single lump sum payment; equal monthly installments or an annuity. The Plan is
administered by ICMA Retirement Corporation. As of September 30, 2011, there were
three (3) participants in the Plan. The balance in the Plan at September 30, 2011 is $82,217.
NOTE 15 — OTHER POST EMPLOYMENT BENEFITS
PLAN DESCRIPTION
The Village provides an optional single employer defined benefit post -employment
healthcare plan to eligible individuals. The plan allows its employees and their
beneficiaries, at their own cost, to continue to obtain health, dental and other insurance
benefits upon retirement. The benefits of the plan conform to Florida Statutes, which are
the legal authority for the plan. The plan has no assets and does not issue a separate
financial report.
FUNDING POLICY AND ANNUAL OPEB COST
The Village does not directly make a contribution to the plan on behalf of retirees.
Retirees and their beneficiaries pay the same group rates as are charged to the Village for
active employees by its healthcare provider. However, the Village's actuaries, in their
actuarial valuation, calculate an offset to the cost of these benefits as an Employer
Contribution, based upon an implicit rate subsidy. This offset equals the total age -
adjusted costs paid by the Village or its active employees for coverage of the retirees and
their dependents for the year net of the retiree's own payments for the year.
The annual other post employment benefit (OPEB) cost is calculated based on the annual
required contribution of the employer, an amount actuarially determined in accordance
with GASB Statement No. 45. The annual required contribution represents a level of
funding that, if paid on an ongoing basis, is projected to cover normal cost each year and
to amortize any unfunded actuarial liabilities over a period not to exceed thirty years.
53
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2011
NOTE 15 — OTHER POST EMPLOYMENT BENEFITS (CONTINUED)
FUNDING POLICY AND ANNUAL OPEB COST (CONTINUED)
The annual OPEB cost for the Village for the current year and the related information is
as follows:
Required Contribution Rates
Employer
Plan members
Normal Cost
Interest on Normal Cost
Amortization
Annual OPEB Cost
Interest of Net OPEB Obligation
Adjustment to ARC
Contributions Made
Increase in Net OPEB Obligation
Net OPEB Obligation, Beginning of Year
Net OPEB Obligation, End of Year
Pay-as-you-go
N/A
$ 113,504
8,489
11,570
133,563
4,217
(3,742)
(13,650)
120,388
120,492
$ 240,880
The annual OPEB cost, the percentage of annual OPEB cost contributed to the plan and
the net OPEB obligation was:
Fiscal Year Ended
Annual OPEB Cost
Percentage of OPEB Cost Contributed
Net OPEB Obligation
9/30/2011
$ 134,038
10.18%
$ 240,880
9/30/2010
$ 128,991
6.59%
$ 120,492
Note GASB Statement No. 45 was implemented for the fiscal year ended September 30,
2010. Therefore, only two years of trend information is available.
54
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2011
NOTE 15 — OTHER POST EMPLOYMENT BENEFITS (CONTINUED)
FUNDED STATUS AND FUNDING PROGRESS
The funded status of the plan as of October 1, 2008 was as follows:
Actuarial
Value of
Assets
(a)
$
Actuarial
Accrued
Liability
(AAL) -
(b)
$ 352,120
Unfunded
AAL
(UAAL)
(b) - (a)
$ 352,120
Funded
Ratio
(a) / (b)
0.0%
Covered
Payroll
(c)
$ 7,612,399
UAAL
as a % of
Covered
Payroll
(b - a) / c
4.63%
The actuarial valuation for the calculation of OPEB involves estimates of the value of
reported amounts and assumptions about the probability of events in the future. Amounts
determined regarding the funded status of the plan and the annual required contributions
of the employer are subject to continual revision as actual results are compared to past
expectations and new estimates are made about the future. The required schedule of
funding progress presented as required supplementary information is designed to provide
multi -year trend information to show whether the actuarial value of plan assets is
increasing or decreasing over time relative to the actuarial accrued liability for benefits.
However, the Village has not contributed assets to the plan at this time.
ACTUARIAL METHODS AND ASSUMPTIONS
Projections of benefits are based on the substantive plan (the plan as understood by the
employer and plan members) and include the types of benefits in force at the valuation
date and the pattern of sharing benefit costs between the Village and the plan members to
that point. Actuarial calculations reflect a long-term perspective and employ methods and
assumptions that are designed to reduce short-term volatility in actuarial accrued
liabilities and the actuarial value of assets. Significant methods and assumptions were as
follows:
Valuation date
Actuarial cost method
Amortization method
Actuarial assumptions:
Investment rate of return*
Projected salary increases*
Payroll growth assumptions
*Includes inflation at
October 1, 2008
Entry Age
Level % closed (Remaining amortization 30 years)
3.0% compounded annually
6.0% - 9.4%
4.0%
3% per year
55
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2011
NOTE 15 — OTHER POST EMPLOYMENT BENEFITS (CONTINUED)
ACTUARIAL METHODS AND ASSUMPTIONS (CONTINUED)
Healthcare cost trend rate(s):
Insurance Premiums
Select Rates 1.0% for 2009 graded to 5.0% for 2019
Ultimate rate 5.0%
NOTE 16 — 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.
56
r
r
r
t
r
r
r
REQUIRED SUPPLEMENTARY INFORMATION
r
r
I
771
r
f"
L
7
r
VILLAGE OF KEY BISCAYNE, FLORIDA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE
GENERAL FUND
FISCAL YEAR ENDED SEPTEMBER 30, 2011
Revenues
Property taxes
Utility taxes/communications services tax
Franchise fees
Licenses and permits
Intergovernmental
Charges for services
Interest
Grants
Miscellaneous income
Budgeted Amounts
Original Final
$ 16,506,471
2,580,000
1,000,000
1,125,250
897,600
2,359,302
114,380
Actual
Amounts
on a GAAP
Basis
$ 16,506,471 $ 16,646,040
2,580,000 2,717,209
1,000,000 735,519
1,125,250 1,948,820
897,600 1,358,573
2,359,302 2,510,237
-- 29,038
77,638
114,380 146,165
Total Revenues 24,583,003 24,583,003 26,169,239
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:
Parks
Community center
Athletic division
Total parks and recreation
Debt service:
Principal
Interest and fiscal charges
282,789 282,789 236,085
397,880 400,132 351,075
1,040,105 1,046,993 943,700
490,000 490,000 410,517
2,210,774 2,219,914 1,941,377
5,228,843 5,333,030
6,241,871 6,268,739
Prior Year
Reserves/
Adjustments
$
5,543,593 (321,681)
6,300,928 (32,189)
11,470,714 11,601,769 11,844,521 (353,870)
1,855,172 1,863,424 1,721,788
1,581,494 1,588,899 1,717,825 (128,926)
Adjusted
Amounts
on a
Budgetary
Basis
$ 16,646,040
2,717,209
735,519
1,948,820
1,358,573
2,510,237
29,038
77,638
146,165
Variance
with Final
Budget -
Positive
(Negative)
$ 139,569
137,209
(264,481)
823,570
460,973
150,935
29,038
77,638
31,785
26,169,239 1,586,236
236,085
351,075
943,700
410.517
46,704
49,057
103,293
79,483
1,941,377 278,537
5,221,912 111,118
6,268,739
11,490,651
111,118
- 1,721,788 141,636
1,095,346
2,019,376
565,902
1,100,724
2,027,398
565,252
1,063,246
2,190,212
555,537
(162,814)
3,680,624 3,693,374 3,808,995 (162,814)
1,943,514 1,943, 514 1,918,987
1,479,076 1,479,076 1,224,317
Total Expenditures 24,221,368 24,389,970 24,177,810 (645,610)
Excess (Deficiency) of
Revenues over Expenditures
Other Financing Uses
Appropriation of prior years':
Reserves - working capital
Reserves - building division
Reserves - law enforcement
Proceeds of refunding bonds
Debt service - principal
Capital lease proceeds
Transfers out
Total Other Financing Uses
Net Change in Fund Balances
361,635 193,033 1,991,429
1,588,899
1,063,246
2,027,398
555,537
3,646,181
1,918,987
1,224,317 254,759
37,478
9,715
47,193
24,527
23,532,200 857,770
(645,610) 2,637,039 2,444,006
(361,635) (185,628) -- 195,003
- (7,405) 128,926
- - (27,594) -
- - 15,885,000 15,885,000
-- -- (15,885,000) (15,885,000)
- -- 321,681 321,681
- - (28.134) -
(361.635) (193,033) 265,953
$ -- $
_$
185,628
7,405
(28.134) (28,134)
645,610 (28.134) (164,899)
2,257,382 $ -
$ 2,608,905 $ (2.608,905)
See note to budgetary comparison schedule.
57
VILLAGE OF KEY BISCAYNE, FLORIDA
REQUIRED SUPPLEMENTARY INFORMATION
NOTE TO BUDGETARY COMPARISON SCHEDULE
FISCAL YEAR ENDED SEPTEMBER 30, 2011
NOTE 1— BUDGETS AND BUDGETARY ACCOUNTING
An annual appropriated budget is prepared for the general fund. The Village prepares a
budget for its special revenue fund and its capital projects fund; however, these budgets are
prepared as project budgets and not as annually appropriated budgets.
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 fmancing
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, 2011, there were supplemental appropriations of $168,602.
(e) Formal budgetary integration is employed as a management control device for the
general fund.
(f) The budget for the general fund is adopted on a basis consistent with generally accepted
accounting principles (GAAP), except for certain unbudgeted expenditures of prior year
reserves.
(g) The Village Manager is authorized to transfer part or all of an encumbered
appropriation balance within departments within a fund; however, any revisions that
alter the total appropriations of any department or fund must be approved by the Village
Council. The classification detail at which expenditures may not legally exceed
appropriations is at the department level.
(h) There were no significant budget amendments during fiscal year ended September 30,
2011.
f
I
58
VILLAGE OF KEY BISCAYNE, FLORIDA
REQUIRED SUPPLEMENTARY INFORMATION
PENSION TRUST FUND
SCHEDULE OF FUNDING PROGRESS
Actual
Valuation
Date
Actuarial
Value of
Assets
(a)
10/1/05 $ 5,703,772
10/1/06 7,255,221
10/1/07 9,017,393
Actuarial
Accrued
Liability
(AAL) -
Entry Age
(b)
$ 9,379,732
10,782,826
12,335,707
10/1/08 10,682,895 16,049,481
10/1/09 12, 548,462 18,495, 824
10/1/10 14,625,108 20,284,931
L
Unfunded
AAL
(UAAL)
(b) - (a)
$ 3,675,960
3,527,605
3,318,314
5,366,586
5,947,362
5,659,823
Funded
Ration
(a) / (b)
60.8%
67.3%
73.1%
66.6%
67.8%
72.1%
Covered
Payroll
(c)
$ 5,320,018
5,355,088
5,740,991
6,365,246
6,808,421
6,663,025
UAAL
As%of
Covered
Payroll
(b - a) / c
69.1%
65.9%
57.8%
84.3%
87.4%
84.9%
VILLAGE OF KEY BISCAYNE, FLORIDA
REQUIRED SUPPLEMENTARY INFORMATION
PENSION TRUST FUND
SCHEDULE OF EMPLOYER CONTRIBUTIONS
Year Annual
Ended Required Percentage
September 30, Contribution Contributed
2006 $ 729,857 100%
2007 773,701 100%
2008 839,400 100%
2009 958,925 100%
2010 968,173 102%
2011 1,152,543 98.5%
60
VILLAGE OF KEY BISCAYNE, FLORIDA
7.11
REQUIRED SUPPLEMENTARY INFORMATION
OTHER POST EMPLOYMENT BENEFITS
771
SCHEDULE OF FUNDING PROGRESS
r
C
Actual
Valuation
Date *
10/1/08 $
Actuarial
Actuarial Accrued Unfunded
Value of Liability AAL Funded
Assets (AAL) - (UAAL) Ration
(a) (b) (b) - (a) (a) / (b)
Covered
Payroll
(c)
$ 352,120 $ 352,120 0.0% $ 7,612,399
UAAL
As % of
Covered
Payroll
(b - a) / c
4.63%
*GASB Statement No. 45 was implemented for the fiscal year ended September 30, 2010. The
October 1, 2008 actuarial valuation was the first and only valuation prepared for the OPEB Plan.
61
h
�1
1
STATISTICAL SECTION
771
791
STATISTICAL SECTION
771
r
This part of the Village of Key Biscayne's comprehensive annual financial report presents
detailed information as a context for understanding what the information in the financial
statements, note disclosures, and required supplementary information says about the Village's
overall financial health.
Contents Page
Financial Trends
These schedules contain trend information to help the reader understand how the 62-66
Village's financial performance and well-being have changed over time. These
schedules include:
Revenue Capacity
These schedules contain information to help the reader assess the Village's most 67-71
significant local revenue source, the property tax.
Debt Capacity
These schedules present information to help the reader assess the affordability of 72-75
the Village's current levels of outstanding debt and the Village's ability to issue
additional debt in the future.
Demographic and Economic Information
These schedules offer demographic and economic indicators to help the reader 76-78
understand the environment within which the Village's financial activities take
Operating Information
These schedules contain service and infrastructure data to help the reader 79-80
understand how the information in the Village's financial report relates to the
services the Village provides and the activities it performs.
Sources: Unless otherwise noted, the information in these schedules is derived from the
comprehensive annual financial reports for the relevant year.
VILLAGE OF KEY BISCAYNE, FLORIDA
NET ASSETS BY COMPONENT
LAST NINE FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
Fiscal Year
Governmental activities
Invested in capital assets, net of related debt
Restricted
Unrestricted
Total governmental activities net assets
Business -type activities
Invested in capital assets, net of related debt
Restricted
Unrestricted
Total business -type activities net assets
Total government
Invested in capital assets, net of related debt
Restricted
Unrestricted
Total government net assets
2003
2004 2005
2006
2007
2008 2009
2010
2011
$ 23,889,001
171,680
4,161,688
28,222,369
$ 26,149,714
283,180
2,809,659
29,242,553
$ 26,284,600
326,826
4,302,680
30,914,106
$ 28,676,266
359,899
4,926,634
33,962,799
2,024,755 1,768,078 1,931,844 2,326,089
1,388,975 1,254,664 1,281,141 778,320
3,413,730 3,022,742 3,212,985 3,104,409
25,913,756
171,680
5,550,663
27,917,792
283,180
4,064,323
28,216,444
326,826
5,583,821
31,002,355
359,899
5,704,954
$ 31,422,358
261,813
8,453,390
40,137,561
$ 36,139,953 $ 38,482,243 $ 41,377,118 $ 43,428,433
284,639 308,813 -- 1,170,247
10,924,001 15,05 5,000 16,540, 883 16,491,3 71
47,348,593 53,846,056 57,918,001 61,090,051
2,505,881 10,174,333
432,133 (2,209,685)
2,938,014 7,964,648
33,928,239 46,314,286
261,813 284,639
8,885,523 8,714,316
$ 31,636,099 $ 32,265,295 $ 34,127,091 $ 43,075,575 $ 55,313,241
$ 37,067,208
Note: The Village implemented GASB Statement No. 34 for the fiscal year ended September 30, 2003.
15,383,765 16,680,711
(346,721) 1,116,111
15,03 7,044 17,796, 822
53,866,008
308,813
14,708,279
58,057,829
17,656,994
$ 68,883,100 $ 75,714,823
16,970,470
1,133,034
18,103,504
60,398,903
1,170,247
17,624,405
$ 79,193,555
62
A
1 1
3
j
3
VILLAGE OF KEY BISCAYNE, FLORIDA
3 -,
3
Expenses
Governmental activities:
General government
Fire
Police
Building, zoning and planning
Public works
Parks and recreation
Interest on long-term debt
Total governmental activities
Business -type activities:
Stormwater system
Solid waste collection
Sanitary sewer
Total business -type activities
Total government expenses
Program revenues
Governmental activities:
Charges for services:
General government
Police
Fire
Parks and recreation
Building, zoning and planning
Operating grants and contributions
Capital grants and contributions
Total governmental activities program revenues
Business -type activities:
Charges for services:
Stormwater system
Solid waste collection
Capital grants and contributions:
Stormwater system
Sanitary sewer
Total business -type activities program revenues
Total program revenues
CHANGES IN NET ASSETS
LAST NINE FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
Fiscal Year
2003
2004
2005
2006
2007
2008
2009
2010
2011
$ 5,691,379
4,821,645
4,787,090
1,252,012
963,676
826,695
1,064,028
19.406.525
634,361
273,076
6.288
$ 3,614,636
4,738,402
4,311,449
1,220,180
1,103,940
1,013,741
1,487,245
17,489,593
971,081
259,173
15,732
1,245,986
$ 2,914,734 $
4,867,525
4,373,145
1,235,175
2,189,673
2,614,785
1,305,383 _
19,500,420
454,963
466,162
10,261
931 386
4,252,037
4,947,149
4,275,617
1,547,042
4,004,651
2,849,434
1,413,272
23,289,202
720,158
501,417
9,993
$ 3,781,396
5,257,789
4,651,660
1,447,968
1,589,444
3,077,624
1,505,253
$ 3,213,273
6,399,665
5,272,383
1,529,272
2,046,776
3,633,233
1,436,481
21,311,134 23,531,083
693,135
571,246
9,454
911,500
619,823
9.046
$ 2,868,728
6,523,753
5,258,243
1,540,507
1,914,119
4,090,555
1,447,387
913,725 1,231,568 1,273,835 1,540,369
$ 20,320,250 $ 18,735,579 $ 20,431,806 $ 24,520,770 $ 22,584,969 $ 25,071,452 $
$ 2,751,697
6,762,228
5,360,548
1,611,119
1,614,443
4,134,830
1,366,437
23,643,292 23,601,302
779,856
618,155
144,922
1.542.933
603,262
585,927
39,178
1,228,367
25,186,225 $ 24,829,669
$ 1,034,247 $ 961,100 $ 1,257,895 S 1,466,186 $ 1,389,163 $ 1,320,004 S
110,215 197,244 212,121 40,719 21,385 14,203
5,805 6,505 7,120 50,392 40,144 146,588
29,752 35,787 1,287,806 1,512,923 1,416,707 1,620,787
117,705 86,455 142,550 167,802 193,391 133,104
99,830 -- 650,679 3,559,753 799,493 251,180
421,085 524,736 517,643 -- -- --
1,818,639 1,811,827 4,075,814 6,797,775 3,860,283 3,485,866
531,164 520,729 518,812 517,365 509,571 499,101'
313,492 284,900 533,632 531,967 520,650 530,803
844,656 805,629
$ 2,663,295 $ 2,617,456
1,052,444 1,049,332
$ 5,128,258 $ 7,847,107 $ 4,890,504
5,460,763
1,030,221 6,490,667
237,315
38,181
136,433
1,957,747
1,173,440
157,912
1,709,481
$ 2,830,412
5,685,278
6,853,329
1,714,303
1,719,526
4,232,147
1,217,874
24,252,869
815,402
546,534
197,474
1,559,410
$ 25,812,279
$ 181,992 $
(1,479)
158,975
2,107,397
1,247,715
163,752
959,360 _
5,410,509 4,817,712
169,307
1,763
190,989
2,287,983
2,184,127
77,638
730,492
5,642,299
491,314 484,932 979,865
635,580 615,480 597,431
331,319
6,971,311
8,429,524
$ 9,976,533 $ 13,840,033
172,164
2,501,287
258,500
3,773,863 1,835,796
$ 8,591,575 $ 7,478,095
(Continued)
63
VILLAGE OF KEY BISCAYNE, FLORIDA
CHANGES IN NET ASSETS
(Continued)
LAST NINE FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
Fiscal Year
Net (expense) revenue
Governmental activities
Business -type activities
Total net expense
General revenues
Governmental activities:
Taxes:
Property taxes
Utility taxes
Franchise fees
Communications services tax
Intergovernmental
Investment earnings
Miscellaneous
Transfers
Total governmental activities
Business -type activities:
Investment earnings
Transfers
Total business -type activities
Total general revenues
Change in net assets
Governmental activities
Business -type activities
Total change in net assets
2003
2004
2005
2006
2007
2008
2009
2010
2011
$ (17,587,886) $ (15,677,766) $ (15,424,606) $ (16,491,427) $ (17,450,851) $ (20,045,217) $ (18,232,783) $ (18,783,590) $ (18,610,570)
(69,069) (440,357) 121,058 (182,236) (243,614) 4,950,298 6,886,591 2,545,496 276,386
$ (17,656,955) $ (16,118,123) $ (15,303,548) $ (16,673,663) $ (17,694,465) $ (15,094,919) $ (11,346,192) $ (16,238,094) $ (18,334,184)
$ 11,317,161 $ 12,770,711 $
2,251,876 2,219,118
611,502 677,203
776,869
82,286
200,561
(9,737)
821,883
110,562
126,607
(28,134)
15, 230 518 16,697,950
22,163
9.737
21,235
28.134
13,360,251 $ 14,830,238 $ 18,667,979 $ 20,051,239
1,488,002 1,549,601 1,467,392 1,534,379
705,810 1,088,929 1,113,194 1,064,666
746,400 797,054 763,801 1,226,423
978,304 996,092 1,000,265 2,265,243
255,611 306,339 641,115 346,531
281,657 -- -- --
(28,135) (28,133) (28,133) (28,134)
17,787,900 19,540,120 23,625,613 26,460,347
41,050
28,135
31,900 49,369 69,185
45,527 49,086
28,133 28,133
73,660 77.219
48,202
28,134
76,336
$ 15,262,418 $ 16,747,319 $ 17,857,085 $ 19.613,780 $ 23,702,832 $ 26,536,683
$ ((22:33(935477:,351366798))) $ 1,020,184 $ 2,363,294 $ 3,048,693 $ 6,174,762 $ 6,415,130
(390,988) 190,243 (108,576) (166,395) 5,026,634
$ $ 629,196 $ 2,553,537 $ 2,940,117 $ 6,008,367 $ 11,441,764
Note: The Village implemented GASB Statement No. 34 for the fiscal year ended September 30, 2003.
$ 19,769,976 $
1,555,748
992,997
1,091,734
1,348,324
44,737
91,232
(164,502)
24,730,246
21,303
164,502
185,805
17,832,874 $ 16,646,040
1,655,032 1,705,238
1,006,415 735,519
1,029,087 964,324
1,391,242 1,575,314
21,346 37,254
131,847 147,065
(212,308) (28,134)
22,855,535 21,782,620
1,974
212,308
214,282
2,162
28,134
30,296
$ 24,916,051 $ 23,069,817 o$ 21,812,916
_
$ 6,497,463 $ 4,071,945 $ 3,172,050
7,072,396 2,759,778 306,682
$ 13,569,859 $ 6,831,723 S 3,478,732
I
j
_3 -3 _3 J
64
3 r 3 3
VILLAGE OF KEY BISCAYNE, FLORIDA
r^ 3
FUND BALANCES OF GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
Fiscal Year
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
General fund
Non -spendable $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ 305,730
Restricted -- 1,170,247
Committed -- 12,039,224
Assigned -- 4,028,870
Reserved 3,308,447 2,967,382 4,677,188 5,754,277 6,874,310 9,875,416 11,298,178 12,318,533 15,286,689
Unreserved 622,261 1,000,177 275,000 -- -- -- --
Total general fund 3,930,708 3,967,559 4,952,188 5,754,277 6,874,310 9,875,416 11,298,178 12,318,533 15,286,689 17,544,071
AU other governmental funds
Committed
Unassigned -- (1,077,816)
Reserved 3,193,812 —
Unreserved, reported in:
Special revenue fund 198,563 513,862 (638,221) (1,496,749) (2,482,196) (2,701,623) (1,501,382) (1,299,432)
Capital projects funds 905,611 (489,979) 881,595 1,421,014 2,954,753 4,783,222 6,875,361 5,195,557
Total all other governmental funds 3,193,812 1,104,174 23,883 243,374 (75,735) 472,557 2,081,599 5,373,979 3,896,125 2,587,443
-- 3,665,259
Total governmental funds $ 7,124,520 $ 5,071,733 $ 4,976,071 $ 5,997,651 $ 6,798,575 $ 10,347,973 $ 13,379,777 $ 17,692,512 $ 19,182,814 $ 20,131,514
Note: The Village implemented GASB Statement No. 54 for the fiscal year ended September 30, 2011.
65
VILLAGE OF KEY BISCAYNE, FLORIDA
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
Fiscal Year
Revenues
Ad valorem taxes
Franchise fees
Utility taxes/communication services tax
Licenses and permits
Intergovernmental revenue
Charges for services
Grants
Investment income
Miscellaneous
Total revenues
Expenditures
Current:
General government
Fire
Police
Public works
Building, planning and zoning
Parks and recreation
Capital outlay
Debt service:
Principal retirement
Interest and other fiscal charges
Total expenditures
Excess (deficiency) of revenues over expenditures
Other financing sources (uses)
Transfers in
Transfers out
Bonds issued
Refunding bonds issued
Debt service - principal
Proceeds from sale of capital assets
Capital lease proceeds
Total other financing sources (uses)
Net change in fund balances
Debt service as a percentage
of non -capital expenditures
Note: The Village implemented GASB Statement No. 34 for the fiscal year ended September 30, 2003.
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
$ 9,569,030
639,072
2,258,931
859,435
971,136
336,134
196,919
89,838
74,959
14,995,454
1,486,638
799,424
6,926,254
802,218
1,264,943
539,058
243,372
$ 11,317,161
611,502
2,251,876
970,001
999,391
327,723
99,830
82,286
399,124
17,058,894
1,829,501
4,046,269
4,305,474
963,247
1,245,119
782,065
5,108,330
$ 12,770,711
677,203
2,219,118
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
1,015,000 1,415,000 1,583,924
1,420,845 1,064, 028 1,135 384
14,497,752 20,759,033 26,935,903
$ 13,360,251 $ 14,830,238 $ 18,667,979
1,452,210 1,885,983 1,113,194
1,488,002 1,549,601 2,231,193
1,040,130 1,196,853 1,298,133
1,495,947 1,756,083 1,593,718
1,867,362 2,041,169 1,762,657
650,679 2,799,762 206,040
255,611 306,339 632,355
281,657 •- 8,762
21,891,849 26,366,028 27,514,031
2,136,375
4,749,407
4,605,148
2,183,774
1,238,376
2,193,633
4,527,998
2,239,052
5,117,176
4,388,362
4,002,609
1,544,696
2,634,887
6,432,271
2,543,134
5,122,699
4,590,962
1,587,460
1,455,193
2,830,020
6,830,844
$ 20,051,239
1,064,666
1,534,379
1,240,290
3,189,251
1,994,396
251,180
338,528
8,003
29,671,932
2,329,647
5,744,775
4,863,765
1,720,689
1,513,019
3,367,638
4,743,796
$ 19,769,976
992,997
2,834,749
1,188,297
3,047,844
2,354,819
167,873
44,737
26,232
30,427,524
2,266,763
6,407,770
5,116,158
1,914,119
1,540,507
3,730,084
1,537,930
$ 17,832,874
1,006,415
2,731,766
1,329,823
2,089,015
2,364,777
425,339
21,346
131,848
27,933,203
1,934,341
6,584,784
5,093,601
1,608,193
1,602,651
3,717,935
2,349,935
1,161,298 1,214,646 1,418,401 1,679,991 2,051,307 2,140,684
1,300,596 1,413,272 1,556,396 1,444,576 1,450,649 1,386,913
24,096,605 28,986,971 27,935,109 27,407,896 26,015,287 26,419,037
497,702 (3,700,139) (8,397,992) (2,204,756) (2,620,943) (421,078) 2,264,036 4,412,237 1,514,166
938,652
(948,389)
1,657,090
819,251
(847,385)
8,330,462
1,245,653 1,731,583 6,697,854
(1,273,788) (1,759,716) (6,725,988)
2,850,000 3,450,000 4,000,000
4,533,094
(4,561,228)
$ 16,646,040
735,519
2,717,209
1,948,820
2,305,806
2,885,349
77,638
37,254
147,065
27,500,700
1,929,153
6,557,442
5,312,977
1,711,868
1,702,541
3,799,408
1,963,219
2,348,506
1,520,433
26,845,547
655,153
3,236,194
(3,400,696) (212,308) (28,134)
-- 18,693,952
-- -- (18,693,952)
65,000 --
404,471 -- 188,444 321,681
1,647,353 8,302,328 3,226,336 3,421,867 3,971,866 (28,134) (99,502) (23,864) 293,547
$ 497,702 $ (2,052,786) $ (95,664) $ 1,021,580 $ 800,924 $ 3,550,788 $ 2,235,902 $ 4,312,735 $ 1,490,302 $ 948,700
21% 19% 20% 14% 13% 16% 16% 17% 17% 18%
66
1 1 _
r
VILLAGE OF KEY BISCAYNE, FLORIDA
GENERAL GOVERNMENTAL TAX REVENUES BY SOURCE
LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
Fiscal Ad Valorem
Year Taxes
Franchise Utility
Taxes
Inter- Communications
Taxes governmental Services Tax*
Total
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
$ 9,569,030
11,317,161
12,770,711
13,360,125
14,830,238
18,667,979
20,051,239
19,769,976
17,832,874
16,646,040
$ 639,072 $ 2,258,931
611,502 2,251,876
677,203 2,219,118
705,810 2,234,402
1,088,929 1,549,601
1,113,194 1,467,392
1,064,666 610,371
992,997 1,555,748
1,006,415 2,731,766
735,519 1,705,238
Source: Village of Key Biscayne Finance Department.
$ 971,136
999,391
1,031,805
1,140,599
1,756,083
1,593,718
3,189,251
3,047,844
1,203,221
1,358,573
$ 904,475
825,739
770,637
746,400
797,054
763,801
1,226,423
1,091,734
1,029,087
1,011,971
$ 14,342,644
16,005,669
17,469,474
18,187,336
20,021,905
23,606,084
26,141,950
26,458,299
23,803,363
21,457,341
*Communications services tax became effective 10/01/01, replacing utility taxes and franchise fees on telephone
and cable TV.
67
VILLAGE OF KEY BISCAYNE, FLORIDA
NET ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY
LAST TEN FISCAL YEARS
Fiscal Year
Ended
September 30,
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
Real Property
Residential
Property
$ 2,618,160,883
3,128,872,469
3,506,812,044
3,713,841,630
4,115,175,292
5,421,393,923
6,173,257,097
6,045,667,021
5,579,196,777
5,101,548,253
Commercial Personal
Property Property
$ 82,923,284
99,098,715
111,068,946
117,626,058
130,346,736
166,638,240
294,540,559
326,947,307
301,954,316
276,247,015
$ 30,749,478
31,948,797
43,233,556
43,867,688
41,852,920
47,020,078
46,315,146
38,117,174
39,521,761
38,812,865
Total
Total Net Direct
Assessed Tax
Value Rate
$ 2,731,833,645 3.606
3,259,919,981 3.606
3,661,114,546 3.606
3,875,335,376 3.606
4,287,374,948 3.606
5,635,052,241 3.450
6,514,112,802 3.200
6,410,731,502 3.200
5,920,672,854 3.200
5,416,608,133 3.200
Note: Property in the Village is reassessed each year. Property is assessed at actual value, therefore,
the assessed values are equal to actual value. Tax rates are per $1,000 of assessed value.
Source: Miami -Dade County Property Appraiser's Office.
68
3
VILLAGE OF KEY BISCAYNE, FLORIDA
PROPERTY TAX RATES - DIRECT AND OVERLAPPING GOVERNMENTS
LAST TEN FISCAL YEARS
Village of Key Biscayne Overlapping Rates (1)
Miami -Dade County
Debt Total
Fiscal Tax Roll General Debt Total Operating Service County
Year Year Operations Service Village Millage Millage Millage
Miami -Dade Schools
Debt Total
Operating Service School
Millage Millage Millage
2002 2001 3.606 3.606 5.713 0.552 6.265 8.528 0.848 9.376
2003 2002 3.606 3.606 5.889 0.390 6.279 8.482 0.770 9.252
2004 2003 3.606 3.606 5.969 0.285 6.254 8.418 0.682 9.100
2005 2004 3.606 3.606 5.935 0.285 6.220 8.090 0.597 8.687
2006 2005 3.606 3.606 5.835 0.285 6.120 7.947 0.491 8.438
2007 2006 3.450 - 3.450 5.615 0.285 5.900 7.691 0.414 8.105
2008 2007 3.200 - 3.200 4.580 0.285 4.865 7.570 0.378 7.948
2009 2008 3.200 3.200 4.838 0.285 5.123 7.533 0.264 7.797
2010 2009 3.200 - 3.200 4.838 0.285 5.123 7.698 0.297 7.995
2011 2010 3.200 3.200 5.428 0.445 5.873 7.864 0.385 8.249
Note: All millage rates are based on $1 for every $1,000 of assessed value.
Sources: Village of Key Biscayne Finance Department and Miami -Dade County Property Appraiser's Office.
Florida
Inland
Navigation
District
0.039
0.039
0.039
0.039
0.039
0.039
0.035
0.035
0.035
0.035
South Total
Florida Direct and
Water Overlapping
Management Other Rates
0.697
0.597
0.597
0.597
0.597
0.597
0.535
0.535
0.535
0.535
0.451
0.586
1.086
1.030
1.014
1.008
0.896
0.893
0.972
0.873
20.434
20.359
20.682
20.179
19.814
19.099
17.478
17.582
17.859
18.764
(1) Overlapping rates are those of local and county governments that apply to property owners within the Village of Key Biscayne. Not all overlapping
rates apply to all Village of Key Biscayne property owners (i.e., the rates for special districts apply only to the proportion of the government's property
owners whose property is located within the geographic boundaries of the special district).
69
VILLAGE OF KEY BISCAYNE, FLORIDA
PRINCIPAL PROPERTY TAXPAYERS
CURRENT YEAR AND NINE YEARS AGO
2011
Taxpayer
Net
Assessed
Value
Percent of
Total
Village Net
Assessed
Rank Value
2002
Taxpayer
Net
Assessed
Value
Percent of
Total
Village Net
Assessed
Rank Value
Consultatio Key Biscayne LLC $
GB Hotel Partners LTD
EDW A McCarthy -Archbishop
Galleria of Key Biscayne Inc
Red Dragon's Sands LTD
Key Biscayne Properties LLC
Key Biscayne Presbyterian Chun
Ocean Club Community Associa
JLK Global Fund US Inc
260 Cape FLA LLC
66,602,600
46,000,000
23,385,548
17,400,000
16,025,204
15,666,076
12,635,262
12,500,000
12,147,515
10,928,675
$ 233,290,880
1 1.23%
2 0.85%
3 0.43%
4 0.32%
5 0.30%
6 0.29%
7 0.23%
8 0.23%
9 0.22%
10 0.20%
4.31%
Source: Tax roll provided by Miami -Dade County Property Appraiser.
Sonesta Beach Resort, LP $
Key Biscayne Ocean Club Ltd.
GB Hotel Partners LTD
Pitu, Inc.
Galleria of Key Biscayne Inc
Carlos M. De La Cruz
Oceanclub Community Assoc
Grand Bay Tower Assoc
Phillip Gevas
Yoyot Realty
33,570,000
31,765,354
27,144,582
9,188,029
7,978,440
7,327,008
6,600,000
5,825,760
5,825,635
5,518,156
$ 140,742,964
1 1.23%
2 1.16%
3 0.99%
4 0.34%
5 0.29%
6 0.27%
7 0.24%
8 0.21%
9 0.21%
10 0.20%
5.15%
r-3 - 3
VILLAGE OF KEY BISCAYNE, FLORIDA
PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
Total Taxes
Fiscal Year Levied for
Collected within
the Fiscal Year
of the Levy
Ended Fiscal Percent
September 30, Year Amount of Levy
2002 $ 9,850,992
2003 11,755,271
2004 13,201,979
2005 13,974,460
2006 15,461,356
2007 19,423,659
2008 19,802,903
2009 20,591,128
2010 18,995,891
2011 17,375,233
$ 9,515,138
11,317,160
12,869,711
13,360,251
14,830,238
18,667,979
19,272,664
19,157,014
17,832,874
16,305,811
96.59%
96.27%
97.48%
95.60%
95.92%
96.11%
97.32%
93.04%
93.88%
93.85%
Collections in
Subsequent
Year's
$ 14,273
16,976
19,305
20,040
22,245
28,002
273,302
367,746
197,199
340,229
Total Collections
to Date
Amount
$ 9,529,411
11,334,136
12,889,016
13,380,291
14,852,483
18,695,981
19,545,966
19,524,760
18,030,073
16,646,040
Source: Village of Key Biscayne Finance Department and Miami -Dade County Tax Collector's Office.
Percent
of Levy
96.74%
96.42%
97.63%
95.75%
96.06%
96.25%
98.70%
94.82%
94.92%
95.80%
71
VILLAGE OF KEY BISCAYNE, FLORIDA
RATIOS OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
Governmental Activities
Fiscal Year General
Ended Obligation Revenue Loans
September 30, Bonds Bonds Payable
2002 $
2003
2004
2005
2006
2007
2008
2009
2010
2011
$ 29,935,000
29,271,000
29,164, 892
30,850,606
33,085,960
31,695,102
33,987,811
32,040,160
29,950,678
27,757,222
Business -Type
Activities
Revenue
Bonds
$ $ 6,810,000 $
6,625,000
6,430,000
6,010,000
5,785,000
5,200,000
5,000,000 5,200,000
-- 4,835,000
4,450,000
4,130,000
Loans
Payable
339,919
2,387,341
4,695,812
4,497,388
Total
$ 36,745,000
35,896,000
35,594,892
36,860,606
38,870,960
36,895,102
44,527,730
39,262,501
39,096,490
36,384,610
Note: Details regarding the Village's outstanding debt can be found in the notes to the financial statements.
Per
Capita
$ 3,562
3,479
3,450
3,573
3,768
3,576
4,238
3,737
3,167
2,948
72
VILLAGE OF KEY BISCAYNE, FLORIDA
RATIOS OF GENERAL BONDED DEBT OUTSTANDING
LAST TEN FISCAL YEARS
r
i
The Village does not have general obligation debt.
73
7
VILLAGE OF KEY BISCAYNE, FLORIDA
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
SEPTEMBER 30, 2011
2011
Government Unit
Net
Debt
Outstanding
Percentage
Applicable to
the Village of
Key Biscayne (1)
Amount
Applicable to
the Village of
Key Biscayne
Direct:
Village of Key Biscayne $ 27,757,222
Overlapping debt:
Miami -Dade County
Miami -Dade County School Board
Subtotal, Overlapping Debt
Village of Key Biscayne Direct Debt
Total Direct and Overlapping Debt
1,204,751
356,992
100.00%
2.37%
2.05%
$ 27,757,222
28,553
7,318
35,871
27,757,222
$ 27,793,093
Sources: Data provided by the Miami -Dade County Finance Department and the Miami -Dade
County School Board.
Note: Overlapping governments are those that coincide, at least in part, with the geographic
boundaries of the Village. This schedule estimates the portion of the outstanding debt of those
overlapping governments that is borne by the residents and businesses of the Village of Key
Biscayne. This process recognizes that, when considering the Village's ability to issue and
repay long-term debt, the entire debt burden borne by the residents and businesses should be
taken into account. However, this does not imply that every taxpayer is a resident, and therefore
responsible for repaying the debt, of each overlapping government.
(1) For debt repaid with property taxes, the percentage of overlapping debt applicable is
estimated using taxable assessed property values. Value that is within the Village's boundaries
and dividing it by the County's and School Board's total taxable assessed value. This approach
was also used for the other debt.
7
a
F
F
F
F
i
VILLAGE OF KEY BISCAYNE, FLORIDA
PLEDGED REVENUE COVERAGE
LAST TEN FISCAL YEARS
Fiscal Year
Ended
September 30,
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
Non -
Ad Valorem
Revenues
$ 5,426,424
5,426,424
5,767,200
8,531,598
11,535,790
8,846,052
9,620,693
10,657,548
8,952,585
10,854,660
Debt Service
Principal
$ 1,015,000
1,015,000
1,583,924
1,161,298
1,214,646
1,418,401
1,679,991
2,051,307
1,721,460
2,348,506
Source: Village of Key Biscayne Finance Department.
Interest
$ 1,420,845
1,420,845
1,135,384
1,300,596
1,413,272
1,556,396
1,444,576
1,450,649
1,122,032
1,520,433
Coverage
2.23
2.71
2.14
3.47
4.27
3.42
3.08
3.04
3.02
4.81
75
11711
VILLAGE OF KEY BISCAYNE, FLORIDA
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN FISCAL YEARS
Year
Median Per Capita
Household Personal Unemployment
Population (1) Income (1) Income (1) Rate (2)
2002 10,507 $ 86,599 $ 54,214 6.0%
2003 10,507 86,599 54,214 5.8%
2004 10,507 86,599 54,214 5.1%
2005 10,507 86,599 54,214 4.2%
2006 10,507 86,599 54,214 3.9%
2007 10,507 86,599 54,214 4.6%
2008 10,507 86,599 54,214 6.9%
2009 10,507 86,599 54,214 11.0%
2010 12,344 86,599 54,214 12.1%
2011 12,344 86,599 54,214 9.4%
Sources:
(1) United States Census Bureau, 2010 Census data.
(2) United States Bureau of Labor Statistics
err
11177
'1
7
76
VILLAGE OF KEY BISCAYNE, FLORIDA
PRINCIPAL EMPLOYERS
CURRENT YEAR AND NINE YEARS AGO
2011 2002
Employer
Percentage of Percentage of
Total Village Total Village
Employees (1) Rank Employment Employees Rank Employment
Ritz Carlton Key Biscayne 1,500 1 not known
Winn Dixie Stores, Inc. 250 3 not known
Village of Key Biscayne 114 3 not known
All remaining employers are of an extremely small number Information not available
Total 1,864
Notes: (1) All amounts are estimated for timely inclusion in report. Requests for information received no response.
77
VILLAGE OF KEY BISCAYNE, FLORIDA
FULL-TIME EQUIVALENT VILLAGE GOVERNMENT EMPLOYEES BY FUNCTION
LAST TEN FISCAL YEARS
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Number of Employees
General government 7 5 6 7 6 6 6 8 7 7
Public safety 72 74 76 79 79 79 78 81 80 80
Building, planning and zoning 16 12 12 13 13 14 13 13 13 13
Public works 3 5 5 5 5 4 4 4 4 4
Parks and recreation 4 4 4 6 6 7 7 10 10 10
Total Number of Employees 102 100 103 110 109 110 108 116 114 114
Source: Village of Key Biscayne Finance Department budget.
78
VILLAGE OF KEY BISCAYNE, FLORIDA
OPERATING INDICATORS BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
Function/Program 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Public safety:
Police:
Police personnel and officers 40 40 41 40 40 40 39 42 41 41
Police calls for service 21,127 20,660 19,004 16,510 13,006 35,412 36,190 37,002 34,935 37,646
Parking violations 789 639 628 682 801 996 776 824 523 563
Traffic violations 2,875 2,433 3,035 1,397 1,468 1,104 946 975 1,425 1,269
Fire:
Fire personnel 33 34 35 39 39 39 39 39 39 39
Fire incidents 1,050 1,114 1,148 1,403 1,103 998 1,006 1,012 1,556 1,841
Fire inspections performed 476 840 307 332 269 220 305 229 267 469
Planning and development:
Business permits issued 2,313 2,581 3,061 3,045 3,000 3,504 3,620 2,451 2,794 2,969
Business tax receipts issued 729 668 428 433 475 914 1,224 1,324 1,142 1,166
Culture and recreation:
Number of building users -- 6,373 6,461 5,778 4,673 4,268 3,990 4,127
Solid waste:
Residential accounts 1,200 1,200 1,200 1,200 1,200 1,200 1,299 1,298 1,302 1,292
Sources: Various Village Departments.
79
VILLAGE OF KEY BISCAYNE, FLORIDA
CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
Function/Program 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
General government:
Number of general government buildings 1 1 1 1 1 1 1 1 1 1
Public safety:
Police:
Police stations 1 1 1 1 1 1 1 1 1 1
Patrol units 3 3 3 3 3 3 3 3 3 3
Fire:
Fire stations 1 1 1 1 1 1 1 1 1 1
Transportation:
Miles of streets 22 22 22 22 22 22 22 22 22 22
Number of street lights 300 300 300 300 300 300 300 300 300 300
Number of traffic signals 4 4 4 4 4 4 4 4 4 4
Culture and recreation:
Parks 3 3 3 3 3 3 3 3 3 3
Parks acreage 9 9 9 9 9 9 9 9 9 9
Community center 1 1 1 1 1 1 1
Swimming pools 1 1 1 1 1 1 1
Sources: Various Village Departments.
80
j __.1 3 - _ 3 - .1
r
COMPLIANCE SECTION
VIA 'CLV
ACCOUNTANTS , ADVISORS
F
r
F
F
F
r
f
F
F
F
c
c
i
c
Independent Auditors' Report on Internal Control over Financial Reporting and on
Compliance and Other Matters Based on an Audit of Financial Statements
Performed in Accordance with GovernmentAuditint 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 and for the fiscal year ended September 30, 2011, and have
issued our report thereon dated April 27, 2012. We conducted our audit in accordance with
auditing standards generally accepted in the United States of America 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 as a basis for designing our auditing procedures for the purpose of expressing our
opinion on the basic financial statements, but not for the purpose of expressing an opinion on the
effectiveness of the Village's internal control over financial reporting. Accordingly, we do not
express an opinion on the effectiveness of the Village's internal control over financial reporting.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to
prevent, or detect and correct misstatements on a timely basis. A material weakness is a
deficiency, or combination of deficiencies, in internal control such that there is a reasonable
possibility that a material misstatement of the entity's financial statements will not be prevented,
or detected and corrected on a timely basis.
Our consideration of internal control over financial reporting was for the limited purpose
described in the first paragraph of this section and was not designed to identify all deficiencies in
internal control over financial reporting that might be deficiencies, significant deficiencies or
material weaknesses. We did not identify any deficiencies in internal control over financial
reporting that we consider to be material weaknesses, as defined above.
MARCUMGROUP
MEMBER
81
F
Marcum u.P • One Southeast Third Avenue • Tenth Floor • Miami, Florida 33131 • Phone 305.995.9600 • Fax 305.995.9601
niarcumllp.com
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Village of Key Biscayne's 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 or other matters that are required to be reported under Government Auditing
Standards.
This report is intended solely for the information and use of the Mayor, Village Council, Village
Manager and regulatory agencies, and is not intended to be and should not be used by anyone
other than these specified parties.
LLI
F
Miami, FL
April 27, 2012
L
r
7
82
MARC'.,
vl
ACCOUNTANTS A 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, 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 fiscal year ended September 30, 2011, which collectively
comprise the Village's basic financial statements and have issued our report thereon dated
April 27, 2012.
We conducted our audit in accordance with auditing standards generally accepted in the United
States of America; the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States. We have issued our
Independent Auditors' Report on Internal Control over Financial Reporting and Compliance and
Other Matters. Disclosures in those reports and schedule, which are dated April 27, 2012, should
be considered in conjunction with this management letter.
Additionally, our audit was conducted in accordance with Chapter 10.550, Rules of the Auditor
General, which governs the conduct of local governmental entity audits performed in the State of
Florida. This letter includes the following information, which is not included in the
aforementioned auditors' reports or schedule:
Section 10.554(1)(i)1., Rules of the Auditor General, requires that we determine whether or
not corrective actions have been taken to address findings and recommendations made in
the preceding annual financial audit report. There were no recommendations made in the
preceding annual report.
Section 10.554(1)(i)2., Rules of the Auditor General, requires our audit to include a review
of the provisions of Section 218.415, Florida Statutes, regarding the investment of public
funds. In connection with our audit, we determined that the Village complied with Section
218.415, Florida Statutes.
Section 10.554(1)(i)3., Rules of the Auditor General, requires that we address in the
management letter any recommendations to improve financial management. In connection
with our audit, we did not have any such recommendations.
83
MARCUMGROUP
EMBER
Mal cum LLP • One Southeast Third Avenue • Tenth Floor • Miami, Florida 33131 • Phone 305.995.9600 • Fax 305.995.9601
marcutin Ilp.com
> Section 10.554(1)(i)4., Rules of the Auditor General, requires that we address violations of
provisions of contracts or grant agreements, or abuses that have occurred, or are likely to
have occurred, that have an effect on the financial statements that is less than material but
more than inconsequential. In connection with our audit, we did not have any such
findings.
> Section 10.554(1)(i)5., Rules of the Auditor General, provides that the auditor may, based
on professional judgment, report the following matters that have an inconsequential effect
on financial statements, considering both quantitative and qualitative factors: (1) violations
of provisions of contracts or grant agreements, fraud, illegal acts, or abuse, and (2)
Deficiencies in internal control that are not significant deficiencies. In connection with our
audit, we did not have any such findings.
> Section 10.554(1)(i)6., Rules of the Auditor General, requires that the name or official title
and legal authority for the primary government and each component unit of the reporting
entity be disclosed in this management letter, unless disclosed in the notes to the financial
statements. The Village of Key Biscayne was incorporated by the Laws of Florida, Act of
1955. There are no component units related to the Village.
> Section 10.554(1)(i)7.a., Rules of the Auditor General, requires a statement to be included
as to whether or not the local governmental entity has met one or more of the conditions
described in Section 218.503(1), Florida Statutes, and identification of the specific
condition(s) met. In connection with our audit, we determined that the Village did not meet
any of the conditions described in Section 218.503(1), Florida Statutes.
> Section 10.554(1)(i)7.b., Rules of the Auditor General, requires that we determine whether
the annual financial report for the Village for the fiscal year ended September 30, 2011,
filed with the Florida Department of Financial Services pursuant to Section 218.32(1)(a),
Florida Statutes, is in agreement with the annual financial report for the fiscal year ended
September 30, 2011. In connection with our audit, we determined that these two reports
were in agreement.
> Pursuant to Sections 10.554(1)(i)7.c. and 10.556(7), Rules of the Auditor General, we
applied financial condition assessment procedures. It is management's responsibility to
monitor the Village's financial condition, and our financial condition assessment was based
in part on representations made by management and the review of financial information
provided by same. This assessment was done as of the fiscal year end.
84
Pursuant to Chapter 119, Florida Statutes, this management letter is a public record and its
distribution is not limited. Auditing standards generally accepted in the United States of America
require us to indicate that this letter is intended solely for the information and use of the Mayor,
Village Commission, management, and the Florida Auditor General, and is not intended to be
and should not be used by anyone other than these specified parties.
Miami, FL
April 27, 2012
85