HomeMy Public PortalAboutCAFR 2012.pdfVILLAGE OF KEY BISCAYNE, FLORIDA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2012
Prepared by:
THE FINANCE DEPARTMENT
VILLAGE OF KEY BISCAYNE, FLORIDA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2012
TABLE OF CONTENTS
Introductory Section
Letter of Transmittal ................................................................................................................. i-iv
Village Officials ............................................................................................................................v
Certificate of Achievement for Excellence in Financial Reporting ............................................ vi
Organization Chart ..................................................................................................................... vii
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 ..................................................................20
Notes to Basic Financial Statements .................................................................................. 21-55
Required Supplementary Information (Other Than MD&A)
Budgetary Comparison Schedule – General Fund ......................................................................56
Note to Budgetary Comparison Schedule ...................................................................................57
Schedule of Funding Progress – Pension Trust Fund .................................................................58
Schedule of Employer Contributions – Pension Trust Fund ......................................................59
Schedule of Funding Progress – Other Post Employment Benefits ...........................................60
VILLAGE OF KEY BISCAYNE, FLORIDA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2012
TABLE OF CONTENTS
Statistical Section
Net Assets by Component ...........................................................................................................61
Changes in Net Assets .......................................................................................................... 62-63
Fund Balances of Governmental Funds ......................................................................................64
Changes in Fund Balances of Governmental Funds ...................................................................65
General Governmental Tax Revenues by Source .......................................................................66
Net Assessed Value and Estimated Actual Value of Taxable Property .....................................67
Property Tax Rates – Direct and Overlapping Governments .....................................................68
Principal Property Taxpayers ......................................................................................................69
Property Tax Levies and Collections ..........................................................................................70
Ratios of Outstanding Debt by Type ..........................................................................................71
Ratios of General Bonded Debt Outstanding .............................................................................72
Direct and Overlapping Governmental Activities Debt .............................................................73
Pledged Revenue Coverage ........................................................................................................74
Demographic and Economic Statistics .......................................................................................75
Principal Employers ....................................................................................................................76
Full-Time Equivalent Village Government Employees by Function .........................................77
Operating Indicators by Function/Program ................................................................................78
Capital Asset Statistics by Function/Program ............................................................................79
Reporting 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 ................... 80-81
Management Letter in Accordance with the Rules of the Auditor General of the
State of Florida ................................................................................................................... 82-83
INTRODUCTORY SECTION
May 31, 2013
Village Council
Franklin H. Caplan, Mayor
Mayra P. Lindsay, T/ice Mayor
Michael W. Davey
Theodore J. Holloway
Michael E. Kelly
Ed London
James S. Taintor
Village Manager
John C. Gilbert
VILLAGE OF KEY BISCAYNE
Office of the Village Manager
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, 2012.
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, 2012 are free of material misstatement.
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88 West McIntyre Street • Suite 210 • Key Biscayne, Florida 33149 • (305) 365-5514 • Fax (305) 365-8936
MISSION STATEMENT: "TO PROVIDE A SAFE, QUALITY COMMUNITY ENVIRONMENT FOR ALL ISLANDERS THROUGH RESPONSIBLE GOVERNMENT."
www.keybiscayne.fl.gov
VILLAGE OF KEY BISCAYNE
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, 2012 are fairly presented in conformity with GAAP. The
independent auditor's report is presented as the first component of the financial section of this
report.
GAAP requires that management provide a narrative introduction, overview, and analysis to
accompany the basic financial statements in the form of Management's Discussion and Analysis
(MD&A). This letter of transmittal is designed to complement MD&A and should be read in
conjunction with it. The Village of Key Biscayne's MD&A can be found immediately following
the 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
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MISSION STATEMENT "TO PROVIDE A SAFE, QUALITY COMMUNITY ENVIRONMENT FOR ALL ISLANDERS THROUGH RESPONSIBLE GOVERNMENT."
VILLAGE OF KEY BISCAYNE
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 supplementary 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 increased slightly during the past year in keeping with nationwide trends. State
economical growth will likely have a favorable impact on many of the Village's
intergovernmental revenues such as sales tax and state revenue sharing. The Village continues to
monitor operating expenses closely while seeking possible new revenue sources.
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.
Financial Policies
The Village of Key Biscayne has policies on Debt Limitation, Emergency Reserve Funds and
Designation and Reservation of surplus fund. The allocation of surplus funds between committed
and assigned fund balance is made at the discretion of the Village Council.
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, 2011. This was the
twentieth 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.
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MISSION STATEMENT "TO PROVIDE A SAFE, QUALITY COMMUNITY ENVIRONMENT FOR ALL ISLANDERS THROUGH RESPONSIBLE GOVERNMENT."
VILLAGE OF KEY BISCAYNE
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,
ivian Parks
Finance Director
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MISSION STATEMENT "TO PROVIDE A SAFE, QUALITY COMMUNITY ENVIRONMENT FOR ALL ISLANDERS THROUGH RESPONSIBLE GOVERNMENT."
v
VILLAGE OF KEY BISCAYNE, FLORIDA
VILLAGE OFFICIALS
SEPTEMBER 30, 2012
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
Vivian Parks
INDEPENDENT AUDITORS
Marcum LLP
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, 2011
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.
p
President
de040
Executive Director
VOTERS OF
KEY BISCAYNE
Village
Council Local Planning
Agency
Village Clerk Special Master Village Manager Village Attorney
Police/Fire
Retirement
Board
Executive Asst
to the
Manager
Department of
Building,
Zoning and
Planning
Department of
Parks and
Recreation
Public Safety
Department
Department of
Public
Works
Department of
Finance and
Administrative
Services
Building
Zoning
Fire Rescue
Police
Special Events
Sports and
Athletics
Programs
Village Engineer
Contract
Supervisor
Stormwater
Finance/
Accounting
Personnel/
Benefits
RiskPlanning
Code Assistance
Programs
and Tours
Stormwater
Management
Refuse
Collection
and Recycling
Maintenance
Risk
Management
Senior
Coordinator
Maintenance
FINANCIAL SECTION
INDEPENDENT AUDITORS’ REPORT
Marcum LLP n One Southeast Third Avenue n Tenth Floor n Miami, Florida 33131 n Phone 305.995.9600 n Fax 305.995.9601
marcumllp.com
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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, 2012 and for the fiscal year
then ended, which collectively comprise the Village’s basic financial statements as listed in the
table of contents. These financial statements are the responsibility of the Village’s management.
Our responsibility is to express opinions on these financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United
States 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, 2012 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.
In accordance with Government Auditing Standards, we have also issued our report dated May 31,
2013 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.
2
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 56 through 60,
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’s financial statements. The information identified in the table
of contents as the introductory and statistical sections are presented for purposes of analysis and
are not a required part of the financial statements. Such information has not been subjected to
the auditing procedures applied in the audit of the financial statements and, accordingly, we do
not express an opinion or provide any assurance on it.
Miami, FL
May 31, 2013
MANAGEMENT’S DISCUSSION AND ANALYSIS
(MD&A)
3
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, 2012. 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
year by $81,666,015 (net assets).
• The Village’s total net assets increased by $2,472,460.
• At the close of the current fiscal year, the Village of Key Biscayne’s governmental funds reported an
ending fund balance of $20,338,445, an increase of $206,931 in comparison with the prior year.
• The Village’s Long Term Issuer Rating was upgraded from Aa2 to Aa1 by Moody’s Investor Services
based on improving financial position.
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
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
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).
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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 55 of this report.
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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 56 to 60 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 $81,666,015 at the close of the most
recent fiscal year.
A portion of the Village’s assets, $97,526,179 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
$3,407,499. While the majority of this increase is attributable to permitting activities and Key Biscayne
Community Center programs; property tax revenue also increased as a direct result of growth in assessed
property values.
Net Assets
A summary of the Village’s net assets is presented in Table A-1 and a summary of the changes in net assets
is presented in Table A-2.
2012 2011 2012 2011 2012 2011
Current assets 22,403,276$ 22,222,158$ 868,716$ 1,225,219$ 23,271,992$ 23,447,377$
Capital assets, net 73,154,203 71,685,564 24,371,976 25,597,858 97,526,179 97,283,422
Total assets 95,557,479 93,907,722 25,240,692 26,823,077 120,798,171 120,730,799
Current liabilities 1,908,636 1,895,815 162,521 92,185 2,071,157 1,988,000
Noncurrent liabilities 29,151,293 30,921,856 7,909,706 8,627,388 37,060,999 39,549,244
Total Liabilities 31,059,929 32,817,671 8,072,227 8,719,573 39,132,156 41,537,244
Investment in capital assets,
net of related debt 44,373,229 43,428,433 16,462,270 16,970,470 60,835,499 60,398,903
Restricted 1,627,771 1,170,247 -- -- 1,627,771 1,170,247
Unrestricted 18,496,550 16,491,371 706,195 1,133,034 19,202,745 17,624,405
Total Net Assets 64,497,550$ 61,090,051$ 17,168,465$ 18,103,504$ 81,666,015$ 79,193,555$
Table A - 1
Summary of Net Assets
Governmental Activities Business-type Activities Total
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2012 2011 2012 2011 2012 2012
Revenues
Program revenues:
Charges for services 5,284,619$ 4,834,169$ 1,523,801$ 1,577,296$ 6,808,420$ 6,411,465$
Operating grants and contributions 6,629 77,638 -- -- 6,629 77,638
Capital grants and contributions 783,886 730,492 -- 258,500 783,886 988,992
General revenues:
Property taxes 16,985,109 16,646,040 -- -- 16,985,109 16,646,040
Utility taxes 1,727,651 1,705,238 -- -- 1,727,651 1,705,238
Communications services tax 946,399 964,324 -- -- 946,399 964,324
Franchise fees 846,252 735,519 -- -- 846,252 735,519
Unrestricted intergovernmental revenue 1,667,597 1,575,314 -- -- 1,667,597 1,575,314
Investment income and miscellaneous 250,682 184,319 587 2,162 251,269 186,481
Total Revenues 28,498,824 27,453,053 1,524,388 1,837,958 30,023,212 29,291,011
Expenses
General government 3,379,954 2,830,412 -- -- 3,379,954 2,830,412
Public Safety 13,092,317 12,538,607 -- -- 13,092,317 12,538,607
Parks and Recreation 4,201,578 4,232,147 -- -- 4,201,578 4,232,147
Public Works 1,736,803 1,719,526 -- -- 1,736,803 1,719,526
Building, Zoning and Planning 1,808,574 1,714,303 -- -- 1,808,574 1,714,303
Interest on long-term debt 843,965 1,217,874 -- -- 843,965 1,217,874
Stormwater -- -- 689,287 815,402 689,287 815,402
Solid waste collection -- -- 563,995 546,534 563,995 546,534
Sanitary sewer construction -- -- 1,234,279 197,474 1,234,279 197,474
Total Expenses 25,063,191 24,252,869 2,487,561 1,559,410 27,550,752 25,812,279
Changes in net assets before transfers 3,435,633 3,200,184 (963,173) 278,548 2,472,460 3,478,732
Transfers (28,134) (28,134) 28,134 28,134 -- --
Changes in net assets after transfers 3,407,499 3,172,050 (935,039) 306,682 2,472,460 3,478,732
Net Assets - Beginning 61,090,051 57,918,001 18,103,504 17,796,822 79,193,555 75,714,823
Net Assets - Ending 64,497,550$ 61,090,051$ 17,168,465$ 18,103,504$ 81,666,015$ 79,193,555$
Table A - 2
Summary of Changes in Net Assets
Governmental Activities Business-type Activities Total
The Village’s total net assets increased by $2,472,460 during the current fiscal year. This increase is
attributable to a rise in property tax revenue, licensing and permitting activities. One construction project in
particular, the Oceana Project consisting of 142-condominium with twelve adjacent villas, is generating
atypical permitting revenues. Program revenues generated by the Community Center also exceeded their
budget.
Business-type Activities
Business-type activities decreased the Village’s net assets by $935,039.
• In fiscal 2012, the solid waste and stormwater funds both reflected increases in net assets.
• The Stormwater Utility Fund reflected net income of $246,283, due mainly to the residual effect of
prior year rate increases.
• The completed Sanitary Sewer Construction Fund project produced a loss of $1,234,279 as result of
depreciation.
7
Governmental Activities
General Government,
$3,379,954 , 13.49%
Public Works,
$1,736,803 , 6.93%
Police, $5,814,706 ,
23.20%
Fire, $7,277,611 ,
29.04%
Parks and Recreation,
$4,201,578 , 16.76%
Building, Zoning and
Planning, $1,808,574 ,
7.22%
Interest on Long Term
Debt, $843,965 , 3.37%
Expenses ‐Governmental Activities
Ad Valorem Taxes,
$16,985,109 , 59.60%
Franchise Fees,
$846,252 , 3%
Communications
Services Tax, $946,399 ,
3%
Utility Taxes,
$1,727,651 , 6%
Intergovernmental,
$1,667,597 , 6%
Charges for Services,
$5,284,619 , 18%
Operating Grants &
Capital Grants and
Contributions,
$790,515 , 3%
Investment Earnings,
$37,985 , 0%
Other, $212,697 , 1%
Revenues by Source ‐Governmental Activities
8
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 $14,394,801, a decrease of
$3,149,270 in comparison with the prior year. The decrease is primarily due to an interfund transfer of
committed funds to the Capital Improvement Fund. All balances have been categorized and set aside for the
following uses: (1) Non-spendable: $303,918, (2) Restricted: 1,054,070 (3) Committed: $4,858,269 and (4)
Assigned: $8,178,544.
9
The general fund is the chief operating fund of the Village of Key Biscayne. As a measure of the general
fund’s liquidity, it may be useful to compare total fund balance to total fund expenditures. Total fund
balance represents 58% of total general fund expenditures.
A summary of the general fund’s condensed balance sheet and statement of revenues, expenditures and
changes in fund balance is presented in Table B-1 and B-2 for September 30, 2012 and 2011, is shown as
follows:
2012 2011
Total Assets 15,977,747$ 19,192,632$
Total Liabilities 1,582,946$ 1,648,561$
Fund Balance
Nonspendable fund balance 303,918 305,730
Restricted fund balance 1,054,070 1,170,247
Committed fund balance 4,858,269 12,039,224
Unassigned fund balance 8,178,544 4,028,870
Total Fund Balance 14,394,801 17,544,071
Total Liabilities and Fund Balance 15,977,747$ 19,192,632$
2012 2011
Total Revenues 27,538,964$ 26,544,351$
Total Expenditures 24,843,878 24,580,516
Excess of Revenues over Expenditures 2,695,086 1,963,835
Total Other financing Sources (Uses)(5,844,356) 293,547
Net Change in Fund Balance (3,149,270)$ 2,257,382$
Table B-1
Summary of Condensed Balance Sheet
Table B-2
Expenditures and Changes in Fund Balances
Summary of Condensed Statement of Revenues,
Net assets within the General Fund decreased primarily as a result of an inter-fund transfer to the Capital
Improvements Fund in the amount of $5,816,222. The purpose of the transfer is detailed below in the
“Capital Improvement Fund” section. Permitting activities increased during the year due primarily to one
particularly large construction project, Oceana, previously discussed on Page 6.
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 2013 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 had decreased in prior years. At management’s recommendation
10
surplus funds generated by the general fund during the past four years were reserved as working capital in
order to mitigate future economic challenges. During fiscal year 2012 the inter-fund transfers resumed, and
a total of $5,816,222 was transferred and committed to the Capital Improvement Fund for specific projects as
detailed in the Village’s Five Year Capital Improvement Plan.
General Fund Budgetary Highlights
The only department with a significant budget to actual variance was the Community Center. The principal
cause of the difference being increased program expenses which were offset by corresponding increased
revenues.
Capital Assets
As of September 30, 2012, the Village’s capital assets net of accumulated depreciation amounted to
$97,526,179 as compared to $97,283,422 as of September 30, 2011. Major capital asset events during the
fiscal year included the following:
• Enhancements to the Emergency Management Services within the Fire Rescue department
• Upgrading of Permitting Software
• Continuation of the Beach Renourishment program
• Completion and capitalization of public parking project
• Completion and capitalization of traffic calming device project
• Purchase of new Public Safety Vehicles and Marine Patrol Boat
Additional information on the Village’s capital assets can be found in Note 7 on pages 35-36 of this report.
Debt Administration
At September 30, 2012, the Village had bonded debt outstanding of $33,452,838 (composed of $25,543,132 in
governmental activities and $7,909,706 of business type activities) compared to $36,384,610 as of
September 30, 2011. Of this amount, $9,369,191 represents bonds secured solely by specified revenue sources
(Transportation Tax Revenue Bonds, Road Improvement Revenue Bonds and State Revolving Fund Loans).
The remainder represents special obligation bonds that are secured by non-ad Valorem revenues through
covenants to budget and appropriate.
Additional information on the Village’s long-term debt can be found in Note 8 on pages 37-45 of this report.
Economic Factors and Next Year’s Budgets and Rates
As the local and national economy begins to recover, commercial real estate in Miami-Dade is showing signs
of improvement. Miami-Dade County is leading the way in attracting diverse new businesses to our area.
Based on these indicators, the Village of Key Biscayne continues to manage a budget that is responsive to the
needs of its community. Focus is on lowering operating expenditures and seeking cost-cutting measures while
maintaining a stable millage rate of 3.2, as sustained for the past five years. Additionally, prior year surpluses
have been set aside as working capital to offset any unforeseen loss of revenue.
The unemployment rate for Miami-Dade County is currently 7.5%, which is a decrease from a rate of 9.4%
percent a year ago. This is favorable to the state’s average unemployment rate of 8.5% as of September 30,
2012. All of these factors were considered during preparation of the Village of Key Biscayne’s budget for
the 2013 fiscal year.
Requests for Information
This financial report is designed to provide a general overview of the Village of Key Biscayne’s finances for
all those with an interest in the government’s finances. Questions concerning any of the information
provided in this report or requests for additional financial information should be addressed to the Office of
the Village Manager, 88 West McIntyre Street, Key Biscayne, Florida 33149.
BASIC FINANCIAL STATEMENTS
Business-
Governmental type
Activities Activities Total
Assets
Cash and cash equivalents 12,466,824$ 866,486$ 13,333,310$
Investments 7,030,475 -- 7,030,475
Receivables, net 795,109 524,657 1,319,766
Prepaids 334,287 -- 334,287
Internal balances 565,285 (565,285) --
Net pension asset 152,781 -- 152,781
Deferred bond issue costs 181,782 42,858 224,640
Restricted assets:
Cash and cash equivalents 587,896 -- 587,896
Investments 288,837 -- 288,837
Capital assets not being depreciated 26,739,750 -- 26,739,750
Capital assets being depreciated, net 46,414,453 24,371,976 70,786,429
Total Assets 95,557,479 25,240,692 120,798,171
Liabilities
Accounts payable and accrued liabilities 991,092 162,521 1,153,613
Accrued interest payable 178,368 -- 178,368
Unearned revenue 739,176 -- 739,176
Noncurrent liabilities:
Due within one year 2,787,190 590,762 3,377,952
Due in more than one year 25,993,784 7,318,944 33,312,728
Net OPEB obligation 370,319 -- 370,319
Total Liabilities 31,059,929 8,072,227 39,132,156
Net Assets
Invested in capital assets, net of related debt 44,373,229 16,462,270 60,835,499
Restricted:
Building and zoning 756,685 -- 756,685
Law enforcement 322,941 -- 322,941
Fire rescue 548,145 -- 548,145
Unrestricted 18,496,550 706,195 19,202,745
Total Net Assets 64,497,550$ 17,168,465$ 81,666,015$
VILLAGE OF KEY BISCAYNE, FLORIDA
STATEMENT OF NET ASSETS
SEPTEMBER 30, 2012
The accompanying notes are an integral part of these financial statements.
11
Charges Operating Capital Business-
for Grants and Grants and Governmental type
Functions/Programs Expenses Services Contributions Contributions Activities Activities Total
Governmental activities
General government 3,379,954$ 177,574$ --$ --$ (3,202,380)$ --$ (3,202,380)$
Police 5,814,706 375 -- -- (5,814,331) -- (5,814,331)
Fire 7,277,611 145,544 1,392 -- (7,130,675) -- (7,130,675)
Public works 1,736,803 -- -- 783,886 (952,917) -- (952,917)
Building, zoning and planning 1,808,574 2,347,092 -- -- 538,518 -- 538,518
Parks and recreation 4,201,578 2,614,034 5,237 -- (1,582,307) -- (1,582,307)
Interest on long-term debt 843,965 -- -- -- (843,965) -- (843,965)
Total governmental activities 25,063,191 5,284,619 6,629 783,886 (18,988,057) -- (18,988,057)
Business-type activities
Stormwater 689,287 935,352 -- -- -- 246,065 246,065
Sanitary sewer 1,234,279 -- -- -- -- (1,234,279) (1,234,279)
Solid waste 563,995 588,449 -- -- -- 24,454 24,454
Total business-type activities 2,487,561 1,523,801 -- -- -- (963,760) (963,760)
Total 27,550,752$ 6,808,420$ 6,629$ 783,886$ (18,988,057) (963,760) (19,951,817)
General Revenues
Property taxes 16,985,109 -- 16,985,109
Franchise fees based on gross receipts 846,252 -- 846,252
Utility taxes 1,727,651 -- 1,727,651
Communications services tax 946,399 -- 946,399
Unrestricted intergovernmental revenue 1,667,597 -- 1,667,597
Unrestricted investment earnings 37,985 587 38,572
Miscellaneous income 212,697 -- 212,697
Transfers (28,134) 28,134 --
Total General Revenues and Transfers 22,395,556 28,721 22,424,277
Change in Net Assets 3,407,499 (935,039) 2,472,460
Net Assets - Beginning 61,090,051 18,103,504 79,193,555
Net Assets - Ending 64,497,550$ 17,168,465$ 81,666,015$
Changes in Net AssetsProgram Revenues
VILLAGE OF KEY BISCAYNE, FLORIDA
STATEMENT OF ACTIVITIES
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2012
Net (Expense) Revenue and
The accompanying notes are an integral part of these financial statements.
12
Transportation Total
Special Capital Governmental
General Revenue Improvements Funds
Assets
Cash and cash equivalents 9,301,782$ --$ 3,165,042$ 12,466,824$
Investments 4,019,924 -- 3,010,551 7,030,475
Receivables, net 661,564 131,400 2,145 795,109
Due from other funds 1,401,722 -- 26,169 1,427,891
Prepaid items 303,918 -- 30,369 334,287
Restricted cash and cash equivalents -- 14,195 573,701 587,896
Restricted investments 288,837 -- -- 288,837
Total Assets 15,977,747$ 145,595$ 6,807,977$ 22,931,319$
Liabilities and Fund Balances
Liabilities
Accounts payable and accrued liabilities 817,102$ --$ 173,990$ 991,092$
Due to other funds 26,668 835,938 -- 862,606
Deferred revenue 739,176 -- -- 739,176
Total Liabilities 1,582,946 835,938 173,990 2,592,874
Fund Balances (Note 11)
Non-spendable 303,918 -- -- 303,918
Restricted 1,054,070 -- 573,701 1,627,771
Committed 4,858,269 -- 6,060,286 10,918,555
Assigned 8,178,544 -- -- 8,178,544
Unassigned -- (690,343) -- (690,343)
Total Fund Balances (Deficit)14,394,801 (690,343) 6,633,987 20,338,445
Total Liabilities and Fund Balances 15,977,747$ 145,595$ 6,807,977$
Amounts reported for governmental activities in the statement of net assets are different becaus
Capital assets used in governmental activities are not financial resources and, therefore,
are not reported in the funds 73,154,203
A net pension asset is not considered to represent a financial asset and
therefore is not reported in the governmental funds 152,781
Debt issue costs are expensed in the governmental funds 181,782
Long-term liabilities, including bonds payable, are not due and payable in the current
period and therefore not reported in the funds (Note 2) (29,329,661)
Net Assets of Governmental Activities 64,497,550$
VILLAGE OF KEY BISCAYNE, FLORIDA
BALANCE SHEET
GOVERNMENTAL FUNDS
SEPTEMBER 30, 2012
The accompanying notes are an integral part of these financial statements.
13
Transportation Total
Special Capital Governmental
General Revenue Improvements Funds
Revenues
Property taxes 16,985,109$ --$ --$ 16,985,109$
Utility taxes 1,727,651 -- -- 1,727,651
Communications services tax 981,847 -- -- 981,847
Franchise fees 846,252 -- -- 846,252
Licenses and permits 2,383,500 -- -- 2,383,500
Intergovernmental 1,466,122 985,361 -- 2,451,483
Charges for services 2,901,119 -- -- 2,901,119
Interest 28,038 22 9,925 37,985
Grants 6,629 -- -- 6,629
Miscellaneous income 212,697 -- -- 212,697
Total Revenues 27,538,964 985,383 9,925 28,534,272
Expenditures
Current:
General government 2,055,519 -- 10,982 2,066,501
Fire 7,056,020 -- -- 7,056,020
Police 5,453,853 -- -- 5,453,853
Public works 1,727,203 -- -- 1,727,203
Building, zoning and planning 1,777,349 -- -- 1,777,349
Parks and recreation 3,764,570 -- 3,764,570
Capital outlay 426,133 -- 3,367,046 3,793,179
Debt service:
Principal 1,944,258 414,090 77,791 2,436,139
Interest and fiscal charges 638,973 183,820 5,600 828,393
Total Expenditures 24,843,878 597,910 3,461,419 28,903,207
Excess (deficiency) of revenues
over expenditures 2,695,086 387,473 (3,451,494) (368,935)
Other Financing Sources (Uses)
Capital leases -- -- 604,000 604,000
Transfers in -- -- 5,816,222 5,816,222
Transfers out (5,844,356) -- -- (5,844,356)
Total Other Financing Sources (Uses)(5,844,356) -- 6,420,222 575,866
Net Change in Fund Balances (3,149,270) 387,473 2,968,728 206,931
Fund Balances (Deficit) - Beginning 17,544,071 (1,077,816) 3,665,259 20,131,514
Fund Balances (Deficit) - Ending 14,394,801$ (690,343)$ 6,633,987$ 20,338,445$
VILLAGE OF KEY BISCAYNE, FLORIDA
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2012
The accompanying notes are an integral part of these financial statements.
14
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) 206,931$
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 3,601,442$
Depreciation expense (2,132,803)
Net adjustment 1,468,639
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 (35,448)
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 2,214,090
Capital lease payments 222,049
Capital lease proceeds (604,000) 1,832,139
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 67,863
Accrued interest expense 2,646
Debt issuance costs (18,218)
Net OPEB obligation (129,439)
Net pension asset (8,488)
Other items 20,874 (64,762)
Change in net assets of governmental activities (Page 12) 3,407,499$
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, 2012
The accompanying notes are an integral part of these financial statements.
15
Solid
Stormwater Sanitary Waste
Utility Sewer (A Nonmajor
System Construction Fund)Totals
Assets
Current Assets
Cash and cash equivalents 325,084$ 393,901$ 147,501$ 866,486$
Accounts receivables, net 299,019 -- 225,638 524,657
Due from other funds 120 499 -- 619
Total Current Assets 624,223 394,400 373,139 1,391,762
Noncurrent Assets
Capital assets being depreciated, net 6,553,627 17,818,349 -- 24,371,976
Deferred bond issue costs, net 42,858 -- -- 42,858
Total Noncurrent Assets 6,596,485 17,818,349 -- 24,414,834
Total Assets 7,220,708 18,212,749 373,139 25,806,596
Liabilities
Current Liabilities
Accounts payable and accrued liabilities 13,534 102,519 46,468 162,521
Due to other funds 565,784 -- 120 565,904
Current portion of revolving loans -- 105,762 -- 105,762
Current portion of revenue bonds payable 485,000 -- -- 485,000
Total Current Liabilities 1,064,318 208,281 46,588 1,319,187
Noncurrent Liabilities
Revenue bonds 3,170,000 -- -- 3,170,000
Revolving loans -- 4,148,944 -- 4,148,944
Total Noncurrent Liabilities 3,170,000 4,148,944 -- 7,318,944
Total Liabilities 4,234,318 4,357,225 46,588 8,638,131
Net Assets
Invested in capital assets, net of related debt 2,898,627 13,563,643 -- 16,462,270
Unrestricted 87,763 291,881 326,551 706,195
Total Net Assets 2,986,390$ 13,855,524$ 326,551$ 17,168,465$
Business-type Activities -
Enterprise Funds
VILLAGE OF KEY BISCAYNE, FLORIDA
STATEMENT OF NET ASSETS
PROPRIETARY FUNDS
SEPTEMBER 30, 2012
The accompanying notes are an integral part of these financial statements.
16
Solid
Stormwater Sanitary Waste
Utility Sewer (A Nonmajor
System Construction Fund) Totals
Operating Revenues
Charges for services 935,352$ --$ 588,449$ 1,523,801$
Operating Expenses
General and administrative 277,308 -- 563,995 841,303
Depreciation 306,130 989,909 -- 1,296,039
Total Operating Expenses 583,438 989,909 563,995 2,137,342
Operating Income (Loss)351,914 (989,909) 24,454 (613,541)
Non-Operating Revenues (Expenses)
Interest income 218 257 112 587
Interest expense (98,707) (153,800) -- (252,507)
Amortization of bond issue costs (7,142) -- -- (7,142)
Other expense -- (90,570) -- (90,570)
Total Non-Operating
Revenues (Expenses)(105,631) (244,113) 112 (349,632)
Income (Loss) before Transfers 246,283 (1,234,022) 24,566 (963,173)
Transfers in -- 28,134 -- 28,134
Total Transfers -- 28,134 -- 28,134
Change in Net Assets 246,283 (1,205,888) 24,566 (935,039)
Net Assets - Beginning 2,740,107 15,061,412 301,985 18,103,504
Net Assets - Ending 2,986,390$ 13,855,524$ 326,551$ 17,168,465$
Business-type Activities -
Enterprise Funds
VILLAGE OF KEY BISCAYNE, FLORIDA
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS
PROPRIETARY FUNDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2012
The accompanying notes are an integral part of these financial statements.
17
Solid
Stormwater Sanitary Waste
Utility Sewer (A Nonmajor
System Construction Fund) Totals
Cash Flows from Operating Activities
Receipts from customers and users 1,192,512$ --$ 555,689$ 1,748,201$
Payments for interfund services (119,696) -- -- (119,696)
Payments to suppliers (296,655) -- (563,995) (860,650)
Net Cash Provided by (Used in) Operating Activities 776,161 -- (8,306) 767,855
Cash Flows from Non-Capital Financing Activities
Transfers in from other funds -- 28,134 -- 28,134
Net Cash Provided by Non-Capital
Financing Activities -- 28,134 -- 28,134
Cash Flows from Capital and Related
Financing Activities
Payments for construction of capital assets (70,157) (1,385) -- (71,542)
Payments on revenue bonds (475,000) -- -- (475,000)
Payments on revolving loans -- (242,682) -- (242,682)
Interest paid (98,707) (153,800) -- (252,507)
Net Cash Used in Capital and Related
Financing Activities (643,864) (397,867) -- (1,041,731)
Cash Flows from Investing Activities
Interest received 218 257 111 586
Net Cash Provided by Investing Activities 218 257 111 586
Net Increase (Decrease) in Cash and Cash Equivalents 132,515 (369,476) (8,195) (245,156)
Cash and Cash Equivalents - Beginning 192,569 763,377 155,696 1,111,642
Cash and Cash Equivalents - Ending 325,084$ 393,901$ 147,501$ 866,486$
Reconciliation of Operating Income (Loss) to Net
Cash Provided by (Used in) Operating Activities
Operating income 351,914$ (989,909)$ 24,454$ (613,541)$
Adjustments to reconcile operating income to net
cash provided by (used in) operating activities:
Depreciation 306,130 989,909 -- 1,296,039
Changes in operating assets and liabilities:
(Increase) decrease in:
Accounts receivable 257,280 -- (34,575) 222,705
Due from other funds (120) -- 1,695 1,575
Increase (decrease) in:
Accounts payable and accrued liabilities (19,347) -- -- (19,347)
Due to other funds (119,696) -- 120 (119,576)
Total adjustments 424,247 989,909 (32,760) 1,381,396
Net Cash Provided by (Used in) Operating Activities 776,161$ --$ (8,306)$ 767,855$
Business-type Activities -
Enterprise Funds
VILLAGE OF KEY BISCAYNE, FLORIDA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2012
The accompanying notes are an integral part of these financial statements.
18
Assets
Investments
Money market funds 511,614$
Common stocks 6,903,115
Mutual funds 12,352,544
Total Investments 19,767,273
Contributions Receivable
Village (including State) 71,902
Total Assets 19,839,175
Liabilities 150,039
Net Assets
Net Assets Held in Trust for Pension Benefits 19,689,136$
VILLAGE OF KEY BISCAYNE, FLORIDA
STATEMENT OF FIDUCIARY NET ASSETS
PENSION TRUST FUND
SEPTEMBER 30, 2012
The accompanying notes are an integral part of these financial statements.
19
Additions
Contributions
Plan members 748,266$
Village (including State) 1,198,959
Total Contributions 1,947,225
Investment Income
Net appreciation in the fair value of investments 2,428,918
Interest and dividends 422,885
2,851,803
Less: investment expenses (71,098)
Net Investment Income 2,780,705
Total Additions 4,727,930
Deductions
Benefits paid 232,556
Refunds paid 34,288
Transfer to ICMA share plan 34,478
Administrative expenses 51,452
Total Deductions 352,774
Change in Net Assets 4,375,156
Net Assets - Beginning 15,313,980
Net Assets - Ending 19,689,136$
VILLAGE OF KEY BISCAYNE, FLORIDA
STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS
PENSION TRUST FUND
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2012
The accompanying notes are an integral part of these financial statements.
20
NOTES TO BASIC FINANCIAL STATEMENTS
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2012
21
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 defining and reporting on the
financial reporting entity. The definition of the financial reporting entity is based upon the
concept that elected officials are accountable to their constituents for their actions. One of
the objectives of financial reporting is to provide users of financial statements with a basis
for assessing the accountability of the elected officials. The financial reporting entity
consists of the Village, organizations for which the Village is financially accountable, and
other organizations for which the nature and significance of their relationship with the
Village are such that exclusion would cause the reporting entity’s financial statements to be
misleading or incomplete. The Village is financially accountable for a component unit if it
appoints a voting majority of the organization’s governing board and it is able to impose its
will on that organization or there is a potential for the organization to provide specific
financial benefits to, or impose specific financial burdens on, the Village. Based upon the
application of these criteria, there were no organizations that met the criteria described
above.
B. GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS
The government-wide financial statements (i.e., the statement of net assets and the
statement of activities) report information on all of the non-fiduciary activities of the
Village. For the most part, the effect of interfund activity has been removed from these
statements.
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2012
22
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.
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2012
23
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
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 (a nonmajor 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.
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2012
24
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
C. MEASUREMENT FOCUS, BASIS OF ACCOUNTING, AND FINANCIAL STATEMENT
PRESENTATION (CONTINUED)
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.
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2012
25
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. Interfund 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 $1,000 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.
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2012
26
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 2012.
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
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 business taxes 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, 2012 and were subsequently
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2012
27
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.
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2012
28
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
D. ASSETS, LIABILITIES, AND NET ASSETS OR EQUITY (CONTINUED)
9. Fund Equity
The Village follows accounting standards for Fund Balance Reporting and
Governmental Fund Type Definitions which establish 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 or Resolution, which are both equally
binding) 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 pursuant 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 the Village Manager to which the Council has
delegated the authority to assign, modify or rescind amounts to be used for specific
purposes. There is no formal policy which has been established by council delegating
this authority. This balance includes (a) all remaining amounts that are reported in
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2012
29
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
D. ASSETS, LIABILITIES, AND NET ASSETS OR EQUITY (CONTINUED)
9. Fund Equity (continued)
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
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 11 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.
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2012
30
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 $29,329,661 difference are as
follows:
Bonds Payable 25,543,132$
Capital Leases Payable 737,156
Compensated Absences 2,500,686
Accrued Interest Payable 178,368
Net OPEB Obligation 370,319
29,329,661$
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 0.20% to 1.20%. There are certificates of deposit with maturities of 90 days or less
totaling $2,002,377 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 $7,030,475 which are presented as investments in the accompanying financial
statements.
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2012
31
NOTE 3 – DEPOSITS AND INVESTMENTS (CONTINUED)
INVESTMENTS
The Village’s investment policy follows the requirements of Florida Statutes Chapter
218.415, and attempts to promote, in order of priority, safety of principal, adequate
liquidity, and maximization of total return. The Village’s investment policy authorizes
investments in direct obligations of the U.S. Government, its agencies or instrumentalities.
The Village is also authorized to invest in SEC registered money market mutual funds,
insured or fully collateralized deposits, repurchase agreements secured by direct obligations
of the U.S. Government, and authorized intergovernmental investment pools. The
investment policy defined in the statutes attempts to promote, through state assistance, the
maximization of net interest earnings on invested surplus funds of local units of
governments while limiting the risk to which the funds are exposed. The Village maintains
a separate investment policy for its pension plan.
For the Town’s pension plan, a Master Custodian Agreement is maintained whereby the
investment securities are held in the Plan's name by a financial institution acting as the
Plan’s agent.
INVESTMENTS – VILLAGE
As of September 30, 2012, the Village had the following investments with its
corresponding maturities in its portfolio:
Fair
Investments Value 1-5
Repurchase Agreements 4,392,098$ 4,392,098$
(In Years)
Investment Maturities
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.
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2012
32
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 $4.4
million investment in repurchase agreements is held by the investment’s counterparty, not
in the name of the Village. The Village’s investment policy does not have a limit on
holding of securities by counterparties.
INVESTMENTS – PENSION PLAN
As of September 30, 2012, the Village’s Defined Benefit Pension Plan had the following
fixed income investments with its corresponding maturities in its portfolio:
Fair Less
Investments Value Than 1 1-5 6-10 10+
Bond Mutual Funds 6,437,014$ --$ 2,537,782$ 1,609,144$ 2,290,088$
Investment Maturities (In Years)
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 fixed income securities which are subject to a rating, were all rated "A" or better
under Standard & Poor's ratings.
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2012
33
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, 2012, 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, 2012 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 45,864$ --$ --$ 299,019$ 247,278$ --$ 592,161$
Contributions -- -- -- -- -- 71,902 71,902
Property Taxes 69,225 -- -- -- -- -- 69,225
Intergovernmental 385,962 131,400 -- -- -- -- 517,362
Other 160,513 -- 2,145 -- -- -- 162,658
Gross Receivables 661,564 131,400 2,145 299,019 247,278 71,902 1,413,308
Less: Allowance for
Uncollectibles -- -- -- -- (21,640) -- (21,640)
Net Total Receivables 661,564$ 131,400$ 2,145$ 299,019$ 225,638$ 71,902$ 1,391,668$
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2012
34
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, 2012 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, 2012, there were no material delinquent taxes.
NOTE 6 – INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS
The composition of interfund balances as of September 30, 2012 is as follows:
Due from/to other funds:
Receivable Fund Payable Fund Amount
General Special Revenue 835,938$
Stormwater 565,784
Capital Improvements General Fund 26,169
Stormwater Solid Waste 120
Sanitary Sewer General Fund 499
1,428,510$
The outstanding balances between funds result mainly from the time lag between the dates
that (1) interfund goods and services are provided or reimbursable expenditures occur, (2)
transactions are recorded in the accounting system, and (3) payments between funds are
made.
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2012
35
NOTE 6 – INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS (CONTINUED)
Interfund transfers:
Transfers Out Transfer In Amount
General Fund Capital Improvements 5,816,222$
Sanitary Sewer 28,134
5,844,356$
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, 2012 was as follows:
Beginning Ending
Balance Increases Decreases Balance
Governmental Activities
Capital Assets, Not Being Depreciated
Land 21,833,837$ --$ --$ 21,833,837$
Construction in progress 2,603,185 2,708,629 (405,901) 4,905,913
Total Capital Assets, Not Being Depreciated 24,437,022 2,708,629 (405,901) 26,739,750
Capital Assets, Being Depreciated
Buildings 24,622,448 165,870 -- 24,788,318
Improvements other than buildings 29,834,856 533,748 -- 30,368,604
Furniture, fixtures and equipment 7,003,676 599,096 (79,756) 7,523,016
Total Capital Assets, Being Depreciated 61,460,980 1,298,714 (79,756) 62,679,938
Less: Accumulated Depreciation for
Buildings (4,388,165) (500,906) -- (4,889,071)
Improvements other than buildings (4,858,907) (948,943) -- (5,807,850)
Furniture, fixtures and equipment (4,965,366) (682,954) 79,756 (5,568,564)
Total Accumulated Depreciation (14,212,438) (2,132,803) 79,756 (16,265,485)
Total Capital Assets, Being Depreciated, Net 47,248,542 (834,089) -- 46,414,453
Governmental Activities Capital Assets, Net 71,685,564$ 1,874,540$ (405,901)$ 73,154,203$
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2012
36
NOTE 7 – CAPITAL ASSETS (CONTINUED)
Beginning Ending
Balance Increases Decreases Balance
Business-type Activities
Capital Assets, Not Being Depreciated
Construction in progress 280,993$ --$ (280,993)$ --$
Total Capital Assets, Not Being Depreciated 280,993 -- (280,993) --
Capital Assets, Being Depreciated
Stormwater utility system 10,349,740 351,150 -- 10,700,890
Sanitary Sewer system 18,808,259 -- -- 18,808,259
Total Capital Assets, Being Depreciated 29,157,999 351,150 -- 29,509,149
Less: Accumulated Depreciation for
Stormwater utility system (3,841,134) (306,130) -- (4,147,264)
Sanitary Sewer system -- (989,909) -- (989,909)
Total Accumulated Depreciation (3,841,134) (1,296,039) -- (5,137,173)
Total Capital Assets, Being Depreciated, Net 25,316,865 (944,889) -- 24,371,976
Business-type Activities Capital Assets, Net 25,597,858$ (944,889)$ (280,993)$ 24,371,976$
Depreciation expense was charged as functions/programs of the primary government as follows:
Governmental Activities
General government 1,072,526$
Police 360,853
Fire 221,591
Public works 9,600
Building, zoning and planning 31,225
Parks 437,008
Total Depreciation Expense - Governmental Activities 2,132,803$
Business-type Activities
Stormwater 306,130$
Sanitary Sewer 989,909
1,296,039$
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2012
37
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, 2012:
Beginning Ending Due Within
Balance Additions Reductions Balance One Year
Governmental Activities
Bonds Payable
Land acquisition and capital improvement
revenue bonds, Series 1999 6,085,000$ --$ (550,000)$ 5,535,000$ 580,000$
Capital improvement revenue refunding
bonds, Series 2011A 6,890,000 -- (550,000) 6,340,000 645,000
Capital improvement revenue refunding
bonds, Series 2011B 7,130,000 -- (560,000) 6,570,000 560,000
Capital improvement and land acquisition
revenue refunding bonds, Series 2011 1,865,000 -- (140,000) 1,725,000 145,000
Transportation tax revenue refunding
bonds, Series 2011 2,808,952 -- (174,190) 2,634,762 178,637
Road improvement revenue bonds,
Series 2006 2,978,270 -- (239,900) 2,738,370 248,602
Total Bonds Payable 27,757,222 -- (2,214,090) 25,543,132 2,357,239
Other Liabilities
Capital leases 355,205 604,000 (222,049) 737,156 179,882
Compensated absences 2,568,549 1,240,395 (1,308,258) 2,500,686 250,069
Total Other Liabilities 2,923,754 1,844,395 (1,530,307) 3,237,842 429,951
Governmental Activities Long-Term Liabilities 30,680,976$ 1,844,395$ (3,744,397)$ 28,780,974$ 2,787,190$
Long-term obligations related to governmental activities are generally liquidated from the
general fund.
LAND ACQUISITION AND CAPITAL IMPROVEMENT REVENUE BONDS, SERIES 1999
On July 23, 1999, the Village issued $10,000,000 Land Acquisition and Capital Improvement
Revenue Bonds, Series 1999, the proceeds of which were used for the acquisition of property
and financing of the construction of the Civic Center project. The bonds mature on July 23,
2019 with final payment due on December 1, 2019. The Village has pledged non-ad valorem
revenues to secure payment of the principal and interest on the bonds. The bonds are due in
annual principal installments. Interest accrues at 4.715% per annum.
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2012
38
NOTE 8 – LONG-TERM DEBT (CONTINUED)
LAND ACQUISITION AND CAPITAL IMPROVEMENT REVENUE BONDS, SERIES 1999
(CONTINUED)
Debt service requirements to maturity are as follows:
Principal Interest Total
Fiscal Year Ending September 30
2013 580,000$ 247,302$ 827,302$
2014 610,000 219,248 829,248
2015 640,000 189,779 829,779
2016 670,000 158,896 828,896
2017 705,000 126,480 831,480
2018-2020 2,330,000 168,326 2,498,326
5,535,000$ 1,110,031$ 6,645,031$
CAPITAL IMPROVEMENT REVENUE REFUNDING BONDS, SERIES 2011A
On June 13, 2011, the Village issued $6,890,000 of Capital Improvement Revenue
Refunding Bonds, Series 2011A for the purpose of refunding the Village’s 10,000,000
Capital Improvement Revenue Bonds, Series 2000. The bonds mature on December 1,
2020. The Village has pledged non-ad valorem revenues to secure payment of the principal
and interest on the bonds. The bonds are due in annual principal installments on each
December 1, commencing December 1, 2011. Interest accrues at 2.31% per annum.
Debt service requirements to maturity are as follows:
Principal Interest Total
Fiscal Year Ending September 30
2013 645,000$ 139,004$ 784,004$
2014 660,000 123,932 783,932
2015 670,000 108,570 778,570
2016 690,000 92,862 782,862
2017 705,000 76,750 781,750
2018-2020 2,970,000 139,293 3,109,293
6,340,000$ 680,411$ 7,020,411$
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2012
39
NOTE 8 – LONG-TERM DEBT (CONTINUED)
CAPITAL IMPROVEMENTS REVENUE REFUNDING BONDS, SERIES 2011B
On August 1, 2011 the Village issued $7,130,000 of Capital Improvement Revenue
Refunding Bonds, Series 2011B for the purpose of refunding the Village’s Capital
Improvement Revenue Bonds, Series 2002. The bonds mature on November 1, 2022. The
Village has pledged non-ad valorem revenues to secure payment of the principal and
interest on the bonds. The bonds bear interest on the outstanding principal balance from its
date of issuance payable quarterly on the first day of each February, May, August and
November commencing November 1, 2011, at an interest rate equal to 2.41% per annum.
Debt service to maturity is as follows:
Principal Interest Total
Fiscal Year Ending September 30
2013 560,000$ 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 635,000 95,496 730,496
2018-2022 3,385,000 239,795 3,624,795
2023 185,000 1,115 186,115
6,570,000$ 864,497$ 7,434,497$
CAPITAL IMPROVEMENT AND LAND ACQUISITION REVENUE REFUNDING BONDS, SERIES
2011
On August 1, 2011 the Village issued the $1,865,000 Capital Improvement and Land
Acquisition Revenue Refunding Bonds, Series 2011 for the purpose of refunding the
Capital Improvement and Land Acquisition Revenue Bonds, Series 2004. The Village has
pledged non-ad valorem revenues to secure payment of the principal and interest on the
bonds. The bonds mature on November 1, 2022. The bonds bear interest on the
outstanding principal balance from its date of issuance payable quarterly on the first day of
each February, May, August and November, commencing November I, 2011, at an interest
rate equal to 2.41% per annum.
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2012
40
NOTE 8 – LONG-TERM DEBT (CONTINUED)
CAPITAL IMPROVEMENT AND LAND ACQUISITION REVENUE REFUNDING BONDS, SERIES
2011 (CONTINUED)
Debt service requirements to maturity are as follows:
Principal Interest Total
Fiscal Year Ending September 30
2013 145,000$ 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 160,000 25,064 185,064
2018-2022 890,000 63,082 953,082
2023 50,000 301 50,301
1,725,000$ 227,052$ 1,952,052$
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 $418,886 and $201,475, respectively. The bonds mature on July 1, 2025.
The bonds bear interest on the outstanding principal balance from its date of issuance
payable quarterly on each January 1, April 1, July 1 and October 1 commencing January 1,
2012, at an interest rate equal to 2.42% per annum.
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2012
41
NOTE 8 – LONG-TERM DEBT (CONTINUED)
TRANSPORTATION TAX REVENUE REFUNDING BONDS, SERIES 2011 (CONTINUED)
Debt service requirements to maturity are as follows:
Principal Interest Total
Fiscal Year Ending September 30
2013 178,637$ 62,148$ 240,785$
2014 182,999 57,786 240,785
2015 187,468 53,317 240,785
2016 192,046 48,739 240,785
2017 196,736 44,049 240,785
2018-2022 1,058,136 145,789 1,203,925
2023-2025 638,740 23,419 662,159
2,634,762$ 435,247$ 3,070,009$
ROAD IMPROVEMENT REVENUE BONDS, SERIES 2006
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
$3,301,443. For the current year, debt service and pledged revenues were $356,341 and
$365,000, respectively. The bonds are due in quarterly principal installments. Interest
accrues at 4.05% per annum.
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2012
42
NOTE 8 – LONG-TERM DEBT (CONTINUED)
ROAD IMPROVEMENT REVENUE BONDS, SERIES 2006 (CONTINUED)
Debt service requirements to maturity are as follows:
Principal Interest Total
Fiscal Year Ending September 30
2013 248,602$ 107,131$ 355,733$
2014 258,185 96,918 355,103
2015 268,137 86,312 354,449
2016 278,472 75,297 353,769
2017 289,205 63,857 353,062
2018-2022 1,395,769 133,558 1,529,327
2,738,370$ 563,073$ 3,301,443$
CAPITAL LEASES
The Village has entered into lease purchase agreements for financing the acquisition of
vehicles and equipment in the General Fund and Capital Improvement Fund. The lease
agreements qualify as capital leases for accounting purposes and have been recorded at the
present value of the future minimum lease payments as of the inception date.
Assets
Machinery and equipment 607,271$
Accumulated depreciation (302,003)
Carrying Value 305,268
Cash Received under Master Lease Agreements
for Purchases of Leased Assets 604,000
909,268$
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2012
43
NOTE 8 – LONG-TERM DEBT (CONTINUED)
CAPITAL LEASES (CONTINUED)
Future minimum lease payments and the present value of net minimum lease payments as
of September 30, 2012 are as follows:
Fiscal Year Ending September 30
2013 179,882$
2014 209,004
2015 126,180
2016 126,159
2017 123,388
Total minimum lease payments 764,613
Less: amount representing interest 27,457
737,156$
The following is a summary of changes in long-term liabilities of the Village for business-
type activities for the year ended September 30, 2012:
Beginning Ending Due Within
Balance Additions Reductions Balance One Year
Business-type Activities
Bonds and Loans Payable
Stormwater utility revenue
refunding bond, Series 2011 4,130,000$ --$ (475,000)$ 3,655,000$ 485,000$
Revolving loan, 1996 279,780 -- (21,133) 258,647 21,677
Revolving loan, 2009 4,217,608 -- (221,549) 3,996,059 84,085
Total Bonds and Loans Payable 8,627,388 -- (717,682) 7,909,706 590,762
Business-type Activities
Long-Term Liabilities 8,627,388$ --$ (717,682)$ 7,909,706$ 590,762$
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. Stormwater utility fees were
$935,352 and debt service was $573,707 for the year ended September 30, 2012. The
bonds mature on October 1, 2019. The Bonds bear interest on the outstanding principal
balance from their date of issuance payable semiannually on each April 1 and October 1
commencing October 1, 2011, at an interest rate equal to 2.39% per annum.
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2012
44
NOTE 8 – LONG-TERM DEBT (CONTINUED)
STORMWATER UTILITY REVENUE REFUNDING BONDS, SERIES 2011 (CONTINUED)
Debt service requirements to maturity are as follows:
Principal Interest Total
Fiscal Year Ending September 30
2013 485,000$ 87,355$ 572,355$
2014 500,000 75,763 575,763
2015 510,000 63,813 573,813
2016 520,000 51,624 571,624
2017 535,000 39,196 574,196
2018-2019 1,105,000 39,794 1,144,794
3,655,000$ 357,545$ 4,012,545$
STATE REVOLVING FUND LOAN, 1996
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 2012 was $28,134 and state revenue sharing
was $220,564. The loan is payable in semi-annual payments over 20 years beginning on
April 15, 2003 at an interest rate of 2.56% per annum. The loan matures on October 15,
2022.
Debt service requirements to maturity are as follows:
Principal Interest Total
Fiscal Year Ending September 30
2013 21,677$ 6,457$ 28,134$
2014 22,236 5,898 28,134
2015 22,809 5,325 28,134
2016 23,396 4,738 28,134
2017 23,999 4,135 28,134
2018-2022 129,595 14,331 143,926
2023 14,935 178 15,113
258,647$ 41,062$ 299,709$
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2012
45
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, 2012 is $3,996,059. The amortization
schedule herein represents the total debt service to be paid under this loan agreement once
all amounts are borrowed. The loan is secured by the communications service tax. Total
debt service for fiscal year 2012 was $368,347 and the pledged revenue was $981,847.
The loan is payable in semi-annual payments over 20 years beginning on August 15, 2010
and is payable each August 15 and February 15 at an interest rate of 3.39% per annum.
The loan matures on February 15, 2030.
Debt service requirements to maturity are as follows:
Principal Interest Total
Fiscal Year Ending September 30
2013 84,085$ 135,466$ 219,551$
2014 180,400 131,100 311,500
2015 186,567 128,042 314,609
2016 192,945 118,554 311,499
2017 199,542 111,958 311,500
2018-2022 1,104,820 452,678 1,557,498
2023-2027 1,307,036 250,462 1,557,498
2028-2030 740,664 38,085 778,749
3,996,059$ 1,366,345$ 5,362,404$
NOTE 9 – 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.
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2012
46
NOTE 9 – COMMITMENTS AND CONTINGENCIES (CONTINUED)
GRANTS CONTINGENCY
Federal and State programs in which the Village participates are subject to audit by grantor
agencies. Any disallowed claims, including amounts already collected, may constitute a
liability of the applicable funds. In the opinion of management, future disallowances of
grant expenditures, if any, would not have a material adverse effect on the financial
condition of the Village.
NOTE 10 – DEFICIT FUND BALANCE
The Transportation Special Revenue Fund has a deficit fund balance of $690,343 which is
being funded from the General Fund and from revenues derived from an interlocal
agreement with Miami-Dade County over a period of approximately 11 years.
NOTE 11–FUND BALANCE CLASSIFICATIONS
As of September 30, 2012, fund balances in the general fund have been set aside for the
following purposes. The Village, by its charter, cannot have any unassigned fund balance,
therefore, many of the commitments/assignments are established to fund current operations,
such as working capital.
Nonspendable
Prepaids 303,918$
303,918
Restricted
Building inspections 756,685
Fire code violations 116,478
Fire grant revenue (UASI) 31,667
Law enforcement seizures 149,240
1,054,070
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2012
47
NOTE 11–FUND BALANCE CLASSIFICATIONS (CONTINUED)
Committed
Emergencies 4,000,000
Fire rescue transport fees 768,269
Labor negotiations 90,000
4,858,269
Assigned
Compensated absences 500,137
Working capital (surplus) 7,678,407
8,178,544
Total Fund Balance 14,394,801$
NOTE 12 – DEFINED CONTRIBUTION PLANS
The Village as a single-employer contributes to the Village of Key Biscayne Money
Purchase Plans, which are defined contribution plans created in accordance with Internal
Revenue Code Section 401(a). 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 13), were no longer eligible to contribute to
the 401(a) plan. Employer contributions for the fiscal year ended September 30, 2012 were
$695,444 while the employee contributions were $109,350. Amendments to the Plan must
be authorized by the Village Council.
SHARE PLAN
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 13).
During fiscal year 2012, the Village transferred $34,478 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, 2012 is $837,335.
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2012
48
NOTE 13 – DEFINED BENEFIT PENSION PLAN
PLAN DESCRIPTION
Effective October 1, 1997, the Village established a single-employer Public Employee
Retirement System (PERS) to provide pension benefits for its police officers and
firefighters. The PERS is considered to be part of the Village’s financial reporting entity
and is included in the Village’s financial reports as a pension trust fund. The Plan was
created under Village Ordinance 97-21. The latest available actuarial valuation is as of
October 1, 2012. 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, 2012 (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 16
Current Employees
Vested 50
Non-vested 15
Total 65
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2012
49
NOTE 13 – 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 15.94% of covered
payroll for the year ended September 30, 2012 which was determined by the October 1,
2010 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, 2012, the most recent actuarial valuation
date, is as follows:
UAAL
Actuarial Actuarial Unfunded As % of
Actual Value of Accrued Liability AAL Funded Covered Covered
Valuation Assets (AAL) - Entry Age (UAAL) Ratio Payroll Payroll
Date (a) (b) (b) - (a) (a) / (b) (c) (b - a) / c
10/1/2012 19,111,769$ 25,829,573$ 6,717,804$ 74.0% 6,782,023$ 99.1%
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.
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2012
50
NOTE 13 – DEFINED BENEFIT PENSION PLAN (CONTINUED)
FUNDED STATUS AND FUNDING PROGRESS (CONTINUED)
Additional information as of the latest actuarial valuation follows:
Valuation Date 10/1/12
Contribution Rates
Employer (and State) 17.68%
Plan members 10.50%
Actuarial Cost Method Entry age normal
Amortization Method Level percent of pay, closed
Remaining Amortization 30 years
Asset Valuation Method 5 year smoothed market value
Actuarial Assumptions
Investment rate of return* 8.0% per year compounded annually,
net of investment related expenses
Projected salary increases* 4.0% to 9.4% variable
Cost of living adjustments 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 1,024,104$
Interest on Net Pension Asset (12,902)
Adjustment to Annual Required Contribution 21,390
Annual Pension Cost 1,032,592
Contributions Made 1,024,104
Decrease in Net Pension Asset 8,488
Net Pension Asset - Beginning of Year (161,269)
Net Pension Asset - End of Year (152,781)$
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2012
51
NOTE 13 – DEFINED BENEFIT PENSION PLAN (CONTINUED)
ANNUAL PENSION COST AND NET PENSION ASSET (CONTINUED)
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.
Annual PercentageNet Pension
Fiscal Year Pension of APC Obligation
Ended Cost (APC)Contributed (Asset)
9/30/2010 973,125$ 101.3% $ (129,093)
9/30/2011 1,009,020 103.2%(161,269)
9/30/2012 1,032,592 99.2%(152,781)
Trend Information
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, 2012, there were
three (3) participants in the Plan. The balance in the Plan at September 30, 2012 is
$139,548.
NOTE 14 – OTHER POST EMPLOYMENT BENEFITS
PLAN DESCRIPTION
The Village provides an optional single employer defined benefit post-employment
healthcare plan to eligible individuals. The plan allows its employees and their
beneficiaries, at their own cost, to continue to obtain health, dental and other insurance
benefits upon retirement. The benefits of the plan conform to Florida Statutes, which are
the legal authority for the plan. The plan has no assets and does not issue a separate
financial report.
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2012
52
NOTE 14 – OTHER POST EMPLOYMENT BENEFITS (CONTINUED)
FUNDING POLICY AND ANNUAL OPEB COST
The Village does not directly make a contribution to the plan on behalf of retirees.
Retirees and their beneficiaries pay the same group rates as are charged to the Village for
active employees by its healthcare provider. However, the Village’s actuaries, in their
actuarial valuation, calculate an offset to the cost of these benefits as an Employer
Contribution, based upon an implicit rate subsidy. This offset equals the total age-
adjusted costs paid by the Village or its active employees for coverage of the retirees and
their dependents for the year net of the retiree’s own payments for the year.
The annual other post employment benefit (OPEB) cost is calculated based on the annual
required contribution of the employer, an amount actuarially determined in accordance
with GASB pronouncements. The annual required contribution represents a level of
funding that, if paid on an ongoing basis, is projected to cover normal cost each year and
to amortize any unfunded actuarial liabilities over a period not to exceed thirty years.
The annual OPEB cost for the Village for the current year and the related information is
as follows:
Required Contribution Rates
Employer Pay-as-you-go
Plan members N/A
Normal Cost 122,766$
Interest on Normal Cost 4,998
Amortization 20,015
Annual OPEB Cost 147,779
Interest of Net OPEB Obligation 8,431
Adjustment to ARC (7,481)
Contributions Made (19,290)
Increase in Net OPEB Obligation 129,439
Net OPEB Obligation, Beginning of Year 240,880
Net OPEB Obligation, End of Year 370,319$
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2012
53
NOTE 14 – OTHER POST EMPLOYMENT BENEFITS (CONTINUED)
THREE-YEAR TREND INFORMATION
The annual OPEB cost, the percentage of annual OPEB cost contributed to the plan and
the net OPEB obligation is as follows:
Fiscal Year Ended 9/30/2012 9/30/2011 9/30/2010
Annual OPEB Cost 148,729$ 134,038$ 128,991$
Percentage of OPEB Cost Contributed 13% 10% 7%
Net OPEB Obligation 370,319$ 240,880$ 120,492$
FUNDED STATUS AND FUNDING PROGRESS
The funded status of the plan as of October 1, 2008, the date of the latest actuarial
valuation which covered fiscal years ended September 30, 2010 through September 30,
2012, was as follows:
Actuarial UAAL
Actuarial Accrued Unfunded as a % of
Value of Liability AAL Funded Covered Covered
Assets (AAL) - (UAAL) Ratio Payroll Payroll
(a) (b) (b) - (a) (a) / (b) (c) (b - a) / c
--$ 352,120$ 352,120$ 0.0% 7,612,399$ 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.
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2012
54
NOTE 14 – OTHER POST EMPLOYMENT BENEFITS (CONTINUED)
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 October 1, 2008
Actuarial cost method Entry Age
Amortization method Level % closed (Remaining amortization 28 years)
Actuarial assumptions:
Investment rate of return* 3.0% compounded annually
Projected salary increases* 6.0% - 9.4%
Payroll growth assumptions 4.0%
*Includes inflation at 3% per year
Healthcare cost trend rate(s):
Insurance Premiums
Select Rates 1.0% for 2009 graded to 5.0% for 2019
Ultimate rate 5.0%
NOTE 15 – 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.
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2012
55
NOTE 16 – SUBSEQUENT EVENT
On October 24, 2012, the Village issued the School Improvement Revenue Bonds, Series
2012 in the amount of $5,575,000 for the purpose of providing a portion of the financing of
a permanent secondary educational facility and recreational fields for Village residents
located at the Mast Academy Campus as well as necessary renovations of the Key Biscayne
K-8 center, financing, architectural, engineering, environmental, legal and other planning
costs related thereto, and paying costs of issuance of the bonds. The bonds are payable in
semi-annual payments over 20 years beginning on April 1, 2013 at an interest rate of 3.35%
per annum. The bond shall mature on October 1, 2032.
REQUIRED SUPPLEMENTARY INFORMATION
Adjusted Variance
Actual Amounts with Final
Amounts Prior Year on a Budget -
on a GAAP Reserves/ Budgetary Positive
Original Final Basis Adjustments Basis (Negative)
Revenues
Property taxes 16,789,533$ 16,789,533$ 16,985,109$ --$ 16,985,109$ 195,576$
Utility taxes/communications
services tax 2,620,000 2,620,000 2,709,498 -- 2,709,498 89,498
Franchise fees 735,000 735,000 846,252 -- 846,252 111,252
Licenses and permits 1,301,300 1,301,300 2,383,500 -- 2,383,500 1,082,200
Intergovernmental 852,000 852,000 1,466,122 -- 1,466,122 614,122
Charges for services 2,609,000 2,609,000 2,901,119 -- 2,901,119 292,119
Interest 11,691 11,691 28,038 -- 28,038 16,347
Grants -- -- 6,629 -- 6,629 6,629
Miscellaneous income 97,949 97,949 212,698 -- 212,698 114,749
Total Revenues 25,016,473 25,016,473 27,538,965 -- 27,538,965 2,522,492
Expenditures
Current:
General government:
Elected officials 274,053 274,053 396,670 -- 396,670 (122,617)
Village Clerk 350,492 350,492 339,148 -- 339,148 11,344
Administration 1,136,668 1,136,668 1,008,797 -- 1,008,797 127,871
Village Attorney 490,000 490,000 500,931 (10,931) 490,000 --
Total general government 2 251 213 2 251 213 2 245 546 (10 931)2 234 615 16 598
Budgeted Amounts
VILLAGE OF KEY BISCAYNE, FLORIDA
BUDGETARY COMPARISON SCHEDULE
GENERAL FUND
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2012
REQUIRED SUPPLEMENTARY INFORMATION
See note to budgetary comparison schedule.
56
Total general government 2,251,213 2,251,213 2,245,546 (10,931) 2,234,615 16,598
Public safety:
Police 5,440,080 5,440,080 5,489,211 -- 5,489,211 (49,131)
Fire 6,480,944 6,480,944 6,808,298 -- 6,808,298 (327,354)
Total public safety 11,921,024 11,921,024 12,297,509 -- 12,297,509 (376,485)
Public works 1,765,060 1,765,060 1,735,207 -- 1,735,207 29,853
Building, zoning and planning 1,730,008 1,730,008 1,791,613 (7,536) 1,784,077 (54,069)
Parks and recreation:
Parks 1,081,014 1,081,014 1,042,318 -- 1,042,318 38,696
Community center 2,026,668 2,026,668 2,190,212 (178,115) 2,012,097 14,571
Athletic division 582,507 582,507 555,537 -- 555,537 26,970
Total parks and recreation 3,690,189 3,690,189 3,788,067 (178,115) 3,609,952 80,237
Debt service:
Principal 2,127,510 2,127,510 1,944,258 -- 1,944,258 183,252
Interest and fiscal charges 847,336 847,336 638,973 -- 638,973 208,363
Total Expenditures 24,332,340 24,332,340 24,441,173 (196,582) 24,244,591 87,749
Excess (Deficiency) of
Revenues over Expenditures 684,133 684,133 3,097,792 (196,582) 3,294,374 2,610,241
Other Financing Uses
Appropriation of prior years':
Reserves - working capital (684,133) -- -- 189,046 -- --
Reserves - building division -- -- -- 7,536 -- --
Reserves - law enforcement -- -- (27,594) -- -- --
Transfers out -- -- (5,844,356) -- (5,844,356) (5,844,356)
Total Other Financing Uses (684,133) -- (5,871,950) 196,582 (5,844,356) 5,844,356
Net Change in Fund Balances --$ 684,133$ (2,774,158)$ --$ (2,549,982)$ 3,234,115$
See note to budgetary comparison schedule.
56
VILLAGE OF KEY BISCAYNE, FLORIDA
REQUIRED SUPPLEMENTARY INFORMATION
NOTE TO BUDGETARY COMPARISON SCHEDULE
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2012
57
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
financing them with an explanation regarding each expenditure that is not of a routine
nature.
(b) Public hearings are conducted to obtain taxpayer comments.
(c) Prior to October 1, the budget is legally enacted through passage of an ordinance.
(d) The Village Council, by motion, may make supplemental appropriations for the year up
to the amount of revenues in excess of those estimated. During fiscal year ended
September 30, 2012, there were no supplemental appropriations.
(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 budget amendments during fiscal year ended September 30, 2012.
Actuarial
Accrued UAAL
Actuarial Liability Unfunded As % of
Actual Value of (AAL) - AAL Funded Covered Covered
Valuation Assets Entry Age (UAAL) Ration Payroll Payroll
Date (a) (b) (b) - (a) (a) / (b) (c) (b - a) / c
10/1/07 9,017,393 12,335,707 3,318,314 73.1% 5,740,991 57.8%
10/1/08 10,682,895 16,049,481 5,366,586 66.6% 6,365,246 84.3%
10/1/09 12,548,462 18,495,824 5,947,362 67.8% 6,808,421 87.4%
10/1/10 14,625,108 20,284,931 5,659,823 72.1% 6,663,025 84.9%
10/1/11 16,807,725 23,544,436 6,736,711 71.4% 6,761,983 99.6%
10/1/12 19,111,769 25,829,573 6,717,804 74.0% 6,782,023 99.1%
VILLAGE OF KEY BISCAYNE, FLORIDA
PENSION TRUST FUND
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF FUNDING PROGRESS
58
Fiscal
Year Annual
Ended Required Percentage
September 30, Contribution Contributed
2007 773,701$ 100%
2008 839,400 100%
2009 958,925 100%
2010 968,173 102%
2011 1,002,826 104%
2012 1,024,104 99%
REQUIRED SUPPLEMENTARY INFORMATION
VILLAGE OF KEY BISCAYNE, FLORIDA
PENSION TRUST FUND
SCHEDULE OF EMPLOYER CONTRIBUTIONS
59
Actuarial UAAL
Actuarial Accrued Unfunded As % of
Actual Value of Liability AAL Funded Covered Covered
Valuation Assets (AAL) - (UAAL) Ration Payroll Payroll
Date * (a) (b) (b) - (a) (a) / (b) (c) (b - a) / c
10/1/08 --$ 352,120$ 352,120$ 0.0% 7,612,399$ 4.63%
VILLAGE OF KEY BISCAYNE, FLORIDA
REQUIRED SUPPLEMENTARY INFORMATION
OTHER POST EMPLOYMENT BENEFITS
SCHEDULE OF FUNDING PROGRESS
*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
as it covered fiscal years ended September 30, 2010 through September 30, 2012.
60
STATISTICAL SECTION
Contents Page
Financial Trends
These schedules contain trend information to help the reader understand how the
Village's financial performance and well-being have changed over time. These
schedules include:
61-65
Revenue Capacity
These schedules contain information to help the reader assess the Village's most
significant local revenue source, the property tax.
66-70
Debt Capacity
These schedules present information to help the reader assess the affordability of
the Village's current levels of outstanding debt and the Village's ability to issue
additional debt in the future.
71-74
Demographic and Economic Information
These schedules offer demographic and economic indicators to help the reader
understand the environment within which the Village's financial activities take
75-77
Operating Information
These schedules contain service and infrastructure data to help the reader
understand how the information in the Village's financial report relates to the
services the Village provides and the activities it performs.
78-79
STATISTICAL SECTION
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.
Sources: Unless otherwise noted, the information in these schedules is derived from the
comprehensive annual financial reports for the relevant year.
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Governmental activities
Invested in capital assets, net of related debt 23,889,001$ 26,149,714$ 26,284,600$ 28,676,266$ 31,422,358$ 36,139,953$ 38,482,243$ 41,377,118$ 43,428,433$ 44,373,229$
Restricted 171,680 283,180 326,826 359,899 261,813 284,639 308,813 -- 1,170,247 1,627,771
Unrestricted 4,161,688 2,809,659 4,302,680 4,926,634 8,453,390 10,924,001 15,055,000 16,540,883 16,491,371 18,496,550
Total governmental activities net assets 28,222,369 29,242,553 30,914,106 33,962,799 40,137,561 47,348,593 53,846,056 57,918,001 61,090,051 64,497,550
Business-type activities
Invested in capital assets, net of related debt 2,024,755 1,768,078 1,931,844 2,326,089 2,505,881 10,174,333 15,383,765 16,680,711 16,970,470 16,462,270
Restricted -- -- -- -- -- -- -- -- -- --
Unrestricted 1,388,975 1,254,664 1,281,141 778,320 432,133 (2,209,685) (346,721) 1,116,111 1,133,034 706,195
Total business-type activities net assets 3,413,730 3,022,742 3,212,985 3,104,409 2,938,014 7,964,648 15,037,044 17,796,822 18,103,504 17,168,465
Total government
Invested in capital assets, net of related debt 25,913,756 27,917,792 28,216,444 31,002,355 33,928,239 46,314,286 53,866,008 58,057,829 60,398,903 60,835,499
Restricted 171,680 283,180 326,826 359,899 261,813 284,639 308,813 -- 1,170,247 1,627,771
Unrestricted 5,550,663 4,064,323 5,583,821 5,704,954 8,885,523 8,714,316 14,708,279 17,656,994 17,624,405 19,202,745
Total government net assets 31,636,099$ 32,265,295$ 34,127,091$ 37,067,208$ 43,075,575$ 55,313,241$ 68,883,100$ 75,714,823$ 79,193,555$ 81,666,015$
Fiscal Year
VILLAGE OF KEY BISCAYNE, FLORIDA
NET ASSETS BY COMPONENT
LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
61
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Expenses
Governmental activities:
General government 5,691,379$ 3,614,636$ 2,914,734$ 4,252,037$ 3,781,396$ 3,213,273$ 2,868,728$ 2,751,697$ 2,830,412$ 3,379,954$
Fire 4,821,645 4,738,402 4,867,525 4,947,149 5,257,789 6,399,665 6,523,753 6,762,228 5,685,278 7,277,611
Police 4,787,090 4,311,449 4,373,145 4,275,617 4,651,660 5,272,383 5,258,243 5,360,548 6,853,329 5,814,706
Building, zoning and planning 1,252,012 1,220,180 1,235,175 1,547,042 1,447,968 1,529,272 1,540,507 1,611,119 1,714,303 1,808,574
Public works 963,676 1,103,940 2,189,673 4,004,651 1,589,444 2,046,776 1,914,119 1,614,443 1,719,526 1,736,803
Parks and recreation 826,695 1,013,741 2,614,785 2,849,434 3,077,624 3,633,233 4,090,555 4,134,830 4,232,147 4,201,578
Interest on long-term debt 1,064,028 1,487,245 1,305,383 1,413,272 1,505,253 1,436,481 1,447,387 1,366,437 1,217,874 843,965
Total governmental activities 19,406,525 17,489,593 19,500,420 23,289,202 21,311,134 23,531,083 23,643,292 23,601,302 24,252,869 25,063,191
Business-type activities:
Stormwater system 634,361 971,081 454,963 720,158 693,135 911,500 779,856 603,262 815,402 689,287
Solid waste collection 273,076 259,173 466,162 501,417 571,246 619,823 618,155 585,927 546,534 563,995
Sanitary sewer 6,288 15,732 10,261 9,993 9,454 9,046 144,922 39,178 197,474 1,234,279
Total business-type activities 913,725 1,245,986 931,386 1,231,568 1,273,835 1,540,369 1,542,933 1,228,367 1,559,410 2,487,561
Total government expenses 20,320,250$ 18,735,579$ 20,431,806$ 24,520,770$ 22,584,969$ 25,071,452$ 25,186,225$ 24,829,669$ 25,812,279$ 27,550,752$
Program revenues
Governmental activities:
Charges for services:
General government 1,034,247$ 961,100$ 1,257,895$ 1,466,186$ 1,389,163$ 1,320,004$ 237,315$ 181,992$ 169,307$ 177,574$
Police 110,215 197,244 212,121 40,719 21,385 14,203 38,181 (1,479) 1,763 375
Fire 5,805 6,505 7,120 50,392 40,144 146,588 136,433 158,975 190,989 145,544
Parks and recreation 29,752 35,787 1,287,806 1,512,923 1,416,707 1,620,787 1,957,747 2,107,397 2,287,983 2,614,034
Building, zoning and planning 117,705 86,455 142,550 167,802 193,391 133,104 1,173,440 1,247,715 2,184,127 2,347,092
Operating grants and contributions 99,830 -- 650,679 3,559,753 799,493 251,180 157,912 163,752 77,638 6,629
Capital grants and contributions 421,085 524,736 517,643 -- -- -- 1,709,481 959,360 730,492 783,886
Total governmental activities program revenues 1,818,639 1,811,827 4,075,814 6,797,775 3,860,283 3,485,866 5,410,509 4,817,712 5,642,299 6,075,134
Business-type activities:
Charges for services:
Stormwater system 531,164 520,729 518,812 517,365 509,571 499,101 491,314 484,932 979,865 935,352
Solid waste collection 313,492 284,900 533,632 531,967 520,650 530,803 635,580 615,480 597,431 588,449
Capital grants and contributions:
Stormwater system -- -- -- -- -- -- 331,319 172,164 -- --
Sanitary sewer -- -- -- -- -- 5,460,763 6,971,311 2,501,287 258,500 --
Total business-type activities program revenues 844,656 805,629 1,052,444 1,049,332 1,030,221 6,490,667 8,429,524 3,773,863 1,835,796 1,523,801
Total program revenues 2,663,295$ 2,617,456$ 5,128,258$ 7,847,107$ 4,890,504$ 9,976,533$ 13,840,033$ 8,591,575$ 7,478,095$ 7,598,935$
(Continued)
VILLAGE OF KEY BISCAYNE, FLORIDA
CHANGES IN NET ASSETS
LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
Fiscal Year
62
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Net (expense) revenue
Governmental activities (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)$ (18,988,057)$
Business-type activities (69,069) (440,357) 121,058 (182,236) (243,614) 4,950,298 6,886,591 2,545,496 276,386 (963,760)
Total net expense (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)$ (19,951,817)$
General revenues
Governmental activities:
Taxes:
Property taxes 11,317,161$ 12,770,711$ 13,360,251$ 14,830,238$ 18,667,979$ 20,051,239$ 19,769,976$ 17,832,874$ 16,646,040$ 16,985,109$
Utility taxes 2,251,876 2,219,118 1,488,002 1,549,601 1,467,392 1,534,379 1,555,748 1,655,032 1,705,238 1,727,651
Franchise fees 611,502 677,203 705,810 1,088,929 1,113,194 1,064,666 992,997 1,006,415 735,519 846,252
Communications services tax -- -- 746,400 797,054 763,801 1,226,423 1,091,734 1,029,087 964,324 946,399
Intergovernmental 776,869 821,883 978,304 996,092 1,000,265 2,265,243 1,348,324 1,391,242 1,575,314 1,667,597
Investment earnings 82,286 110,562 255,611 306,339 641,115 346,531 44,737 21,346 37,254 37,985
Miscellaneous 200,561 126,607 281,657 -- -- -- 91,232 131,847 147,065 212,697
Transfers (9,737) (28,134) (28,135) (28,133) (28,133) (28,134) (164,502) (212,308) (28,134) (28,134)
Total governmental activities 15,230,518 16,697,950 17,787,900 19,540,120 23,625,613 26,460,347 24,730,246 22,855,535 21,782,620 22,395,556
Business-type activities:
Investment earnings 22,163 21,235 41,050 45,527 49,086 48,202 21,303 1,974 2,162 587
Transfers 9,737 28,134 28,135 28,133 28,133 28,134 164,502 212,308 28,134 28,134
Total business-type activities 31,900 49,369 69,185 73,660 77,219 76,336 185,805 214,282 30,296 28,721
Total general revenues 15,262,418$ 16,747,319$ 17,857,085$ 19,613,780$ 23,702,832$ 26,536,683$ 24,916,051$ 23,069,817$ 21,812,916$ 22,424,277$
Change in net assets
Governmental activities (2,357,368)$ 1,020,184$ 2,363,294$ 3,048,693$ 6,174,762$ 6,415,130$ 6,497,463$ 4,071,945$ 3,172,050$ 3,407,499$
Business-type activities (37,169) (390,988) 190,243 (108,576) (166,395) 5,026,634 7,072,396 2,759,778 306,682 (935,039)
Total change in net assets (2,394,537)$ 629,196$ 2,553,537$ 2,940,117$ 6,008,367$ 11,441,764$ 13,569,859$ 6,831,723$ 3,478,732$ 2,472,460$
VILLAGE OF KEY BISCAYNE, FLORIDA
CHANGES IN NET ASSETS
(Continued)
LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
Fiscal Year
63
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
General fund
Non-spendable --$ --$ --$ --$ --$ --$ --$ --$ 305,730$ 303,918$
Restricted -- -- -- -- -- -- -- -- 1,170,247 1,054,070
Committed -- -- -- -- -- -- -- -- 12,039,224 4,858,269
Assigned -- -- -- -- -- -- -- -- 4,028,870 8,178,544
Reserved 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 1,000,177 275,000 -- -- -- -- -- -- -- --
Total general fund 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 14,394,801
All other governmental funds
Committed -- -- -- -- -- -- -- -- 3,665,259 6,060,286
Unassigned -- -- -- -- -- -- -- -- (1,077,816) (690,343)
Restricted -- -- -- -- -- -- -- -- -- 573,701
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 1,104,174 23,883 243,374 (75,735) 472,557 2,081,599 5,373,979 3,896,125 2,587,443 5,943,644
Total governmental funds 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$ 20,338,445$
Note: The Village implemented GASB Statement No. 54 for the fiscal year ended September 30, 2011.
Fiscal Year
VILLAGE OF KEY BISCAYNE, FLORIDA
FUND BALANCES OF GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
64
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Revenues
Ad valorem taxes 11,317,161$ 12,770,711$ 13,360,251$ 14,830,238$ 18,667,979$ 20,051,239$ 19,769,976$ 17,832,874$ 16,646,040$ 16,985,109$
Franchise fees 611,502 677,203 1,452,210 1,885,983 1,113,194 1,064,666 992,997 1,006,415 735,519 846,252
Utility taxes/communication services tax 2,251,876 2,219,118 1,488,002 1,549,601 2,231,193 1,534,379 2,834,749 2,731,766 2,717,209 2,709,498
Licenses and permits 970,001 961,100 1,040,130 1,196,853 1,298,133 1,240,290 1,188,297 1,329,823 1,948,820 2,383,500
Intergovernmental revenue 999,391 1,031,805 1,495,947 1,756,083 1,593,718 3,189,251 3,047,844 2,089,015 2,305,806 2,451,483
Charges for services 327,723 325,651 1,867,362 2,041,169 1,762,657 1,994,396 2,354,819 2,364,777 2,885,349 2,901,119
Grants 99,830 -- 650,679 2,799,762 206,040 251,180 167,873 425,339 77,638 6,629
Investment income 82,286 110,562 255,611 306,339 632,355 338,528 44,737 21,346 37,254 37,985
Miscellaneous 399,124 441,761 281,657 -- 8,762 8,003 26,232 131,848 147,065 212,697
Total revenues 17,058,894 18,537,911 21,891,849 26,366,028 27,514,031 29,671,932 30,427,524 27,933,203 27,500,700 28,534,272
Expenditures
Current:
General government 1,829,501 1,712,899 2,136,375 2,239,052 2,543,134 2,329,647 2,266,763 1,934,341 1,929,153 2,066,501
Fire 4,046,269 4,462,601 4,749,407 5,117,176 5,122,699 5,744,775 6,407,770 6,584,784 6,557,442 7,056,020
Police 4,305,474 4,113,946 4,605,148 4,388,362 4,590,962 4,863,765 5,116,158 5,093,601 5,312,977 5,453,853
Public works 963,247 1,098,250 2,183,774 4,002,609 1,587,460 1,720,689 1,914,119 1,608,193 1,711,868 1,727,203
Building, planning and zoning 1,245,119 1,212,290 1,238,376 1,544,696 1,455,193 1,513,019 1,540,507 1,602,651 1,702,541 1,777,349
Parks and recreation 782,065 952,261 2,193,633 2,634,887 2,830,020 3,367,638 3,730,084 3,717,935 3,799,408 3,764,570
Capital outlay 5,108,330 10,664,348 4,527,998 6,432,271 6,830,844 4,743,796 1,537,930 2,349,935 1,963,219 3,793,179
Debt service:
Principal retirement 1,415,000 1,583,924 1,161,298 1,214,646 1,418,401 1,679,991 2,051,307 2,140,684 2,348,506 2,436,139
Interest and other fiscal charges 1,064,028 1,135,384 1,300,596 1,413,272 1,556,396 1,444,576 1,450,649 1,386,913 1,520,433 828,393
Total expenditures 20,759,033 26,935,903 24,096,605 28,986,971 27,935,109 27,407,896 26,015,287 26,419,037 26,845,547 28,903,207
Excess (deficiency) of revenues over expenditures (3,700,139) (8,397,992) (2,204,756) (2,620,943) (421,078) 2,264,036 4,412,237 1,514,166 655,153 (368,935)
Other financing sources (uses)
Capital Leases -- -- -- -- -- -- -- -- -- 604,000
Transfers in 938,652 819,251 1,245,653 1,731,583 6,697,854 4,533,094 3,236,194 -- -- 5,816,222
Transfers out (948,389) (847,385) (1,273,788) (1,759,716) (6,725,988) (4,561,228) (3,400,696) (212,308) (28,134) (5,844,356)
Bonds issued 1,657,090 8,330,462 2,850,000 3,450,000 4,000,000 -- -- -- -- --
Refunding bonds issued -- -- -- -- -- -- -- -- 18,693,952 --
Debt service - principal -- -- -- -- -- -- -- -- (18,693,952) --
Proceeds from sale of capital assets -- -- -- -- -- -- 65,000 -- -- --
Capital lease proceeds -- -- 404,471 -- -- -- -- 188,444 321,681 --
Total other financing sources (uses)1,647,353 8,302,328 3,226,336 3,421,867 3,971,866 (28,134) (99,502) (23,864) 293,547 575,866
Net change in fund balances (2,052,786)$ (95,664)$ 1,021,580$ 800,924$ 3,550,788$ 2,235,902$ 4,312,735$ 1,490,302$ 948,700$ 206,931$
Debt service as a percentage
of non-capital expenditures 19% 20% 14% 13% 16% 16% 17% 17% 18% 15%
VILLAGE OF KEY BISCAYNE, FLORIDA
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
Fiscal Year
65
Fiscal Ad Valorem Franchise Utility Inter- Communications
Year Taxes Taxes Taxes governmental Services Tax Total
2003 11,317,161$ 611,502$ 2,251,876$ 999,391$ 825,739$ 16,005,669$
2004 12,770,711 677,203 2,219,118 1,031,805 770,637 17,469,474
2005 13,360,125 705,810 2,234,402 1,140,599 746,400 18,187,336
2006 14,830,238 1,088,929 1,549,601 1,756,083 797,054 20,021,905
2007 18,667,979 1,113,194 1,467,392 1,593,718 763,801 23,606,084
2008 20,051,239 1,064,666 610,371 3,189,251 1,226,423 26,141,950
2009 19,769,976 992,997 1,555,748 3,047,844 1,091,734 26,458,299
2010 17,832,874 1,006,415 2,731,766 1,203,221 1,029,087 23,803,363
2011 16,646,040 735,519 1,705,238 1,358,573 1,011,971 21,457,341
2012 16,985,109 846,252 1,727,651 2,451,483 981,847 22,992,342
VILLAGE OF KEY BISCAYNE, FLORIDA
GENERAL GOVERNMENTAL TAX REVENUES BY SOURCE
LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
Source: Village of Key Biscayne Finance Department.
66
Total
Fiscal Year Total Net Direct
Ended Residential Commercial Personal Assessed Tax
September 30, Property Property Property Value Rate
2003 3,128,872,469$ 99,098,715$ 31,948,797$ 3,259,919,981$ 3.606
2004 3,506,812,044 111,068,946 43,233,556 3,661,114,546 3.606
2005 3,713,841,630 117,626,058 43,867,688 3,875,335,376 3.606
2006 4,115,175,292 130,346,736 41,852,920 4,287,374,948 3.606
2007 5,421,393,923 166,638,240 47,020,078 5,635,052,241 3.450
2008 6,173,257,097 294,540,559 46,315,146 6,514,112,802 3.200
2009 6,045,667,021 326,947,307 38,117,174 6,410,731,502 3.200
2010 5,579,196,777 301,954,316 39,521,761 5,920,672,854 3.200
2011 5,101,548,253 276,247,015 38,812,865 5,416,608,133 3.200
2012 5,199,632,122 281,666,505 41,574,020 5,522,872,647 3.200
Source: Miami-Dade County Property Appraiser's Office.
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.
Real Property
VILLAGE OF KEY BISCAYNE, FLORIDA
NET ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY
LAST TEN FISCAL YEARS
67
Florida South Total
Debt Total Debt Total Inland Florida Direct and
Fiscal Tax Roll General Debt Total Operating Service County Operating Service School Navigation Water Overlapping
Year Year Operations Service Village Millage Millage Millage Millage Millage Millage District Management Other Rates
2003 2002 3.606 - 3.606 5.889 0.390 6.279 8.482 0.770 9.252 0.039 0.597 0.586 20.359
2004 2003 3.606 - 3.606 5.969 0.285 6.254 8.418 0.682 9.100 0.039 0.597 1.086 20.682
2005 2004 3.606 - 3.606 5.935 0.285 6.220 8.090 0.597 8.687 0.039 0.597 1.030 20.179
2006 2005 3.606 - 3.606 5.835 0.285 6.120 7.947 0.491 8.438 0.039 0.597 1.014 19.814
2007 2006 3.450 - 3.450 5.615 0.285 5.900 7.691 0.414 8.105 0.039 0.597 1.008 19.099
2008 2007 3.200 - 3.200 4.580 0.285 4.865 7.570 0.378 7.948 0.035 0.535 0.896 17.478
2009 2008 3.200 - 3.200 4.838 0.285 5.123 7.533 0.264 7.797 0.035 0.535 0.893 17.582
2010 2009 3.200 - 3.200 4.838 0.285 5.123 7.698 0.297 7.995 0.035 0.535 0.972 17.859
2011 2010 3.200 - 3.200 5.428 0.445 5.873 7.864 0.385 8.249 0.035 0.535 0.873 18.764
2012 2011 3.200 - 3.200 4.805 0.285 5.090 7.765 0.240 8.005 0.035 0.374 0.742 17.445
(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).
VILLAGE OF KEY BISCAYNE, FLORIDA
PROPERTY TAX RATES - DIRECT AND OVERLAPPING GOVERNMENTS
LAST TEN FISCAL YEARS
Miami-Dade County
Overlapping Rates (1)Village of Key Biscayne
Miami-Dade Schools
Note: All millage rates are based on $1 for every $1,000 of assessed value.
Sources: Village of Key Biscayne Finance Department and Miami-Dade County Property Appraiser's Office.
68
Percent of Percent of
Total Total
Net Village Net Net Village Net
Assessed Assessed Assessed Assessed
Taxpayer Value Rank Value Taxpayer Value Rank Value
Consultatio Key Biscayne LLC 57,288,920$ 1 1.06% Sonesta Beach Resort, LP 39,921,710$ 1 1.22%
GB Hotel Partners LTD 49,300,000 2 0.91% GB Hotel Partners LTD 26,929,342 2 0.83%
EDW A McCarthy-Archbishop 23,341,773 3 0.43% Key Biscayne Ocean Club Ltd.17,486,700 3 0.54%
Red Dragon's Sands LTD 17,627,724 4 0.33% Oceanclub Community Assoc 12,500,000 4 0.38%
Galleria of Key Biscayne Inc 17,500,000 5 0.32% Pitu, Inc. 9,657,016 5 0.30%
Key Biscayne Properties LLC 15,616,530 6 0.29% Galleria of Key Biscayne Inc 8,741,107 6 0.27%
Key Biscayne Presbyterian Church 12,606,491 7 0.23% Claudio Alvarez 8,505,544 7 0.26%
Ocean Club Community Association 12,500,000 8 0.23% Red Dragon Sands, LTD 8,470,400 8 0.26%
260 Cape FLA LLC 11,383,593 9 0.21% John Dasburg 6,828,983 9 0.21%
United Real Est Ventures Inc 11,117,654 10 0.21% Yoyot Realty, Inc.5,849,394 10 0.18%
228,282,685$ 4.21%144,890,196$ 4.45%
Source: Tax roll provided by Miami-Dade County Property Appraiser.
2012 2003
VILLAGE OF KEY BISCAYNE, FLORIDA
PRINCIPAL PROPERTY TAXPAYERS
CURRENT YEAR AND NINE YEARS AGO
69
Total Taxes
Fiscal Year Levied for Collections in
Ended Fiscal Percent Subsequent Percent
September 30, Year Amount of Levy Year's Amount of Levy
2003 11,755,271$ 11,317,160$ 96.27% 16,976$ 11,334,136$ 96.42%
2004 13,201,979 12,869,711 97.48% 19,305 12,889,016 97.63%
2005 13,974,460 13,360,251 95.60% 20,040 13,380,291 95.75%
2006 15,461,356 14,830,238 95.92% 22,245 14,852,483 96.06%
2007 19,423,659 18,667,979 96.11% 28,002 18,695,981 96.25%
2008 19,802,903 19,272,664 97.32% 273,302 19,545,966 98.70%
2009 20,591,128 19,157,014 93.04% 367,746 19,524,760 94.82%
2010 18,995,891 17,832,874 93.88% 197,199 18,030,073 94.92%
2011 17,375,233 16,305,811 93.85% 340,229 16,646,040 95.80%
2012 17,673,192 16,915,884 95.71% 69,225 16,985,109 96.11%
VILLAGE OF KEY BISCAYNE, FLORIDA
PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
the Fiscal Year
Source: Village of Key Biscayne Finance Department and Miami-Dade County Tax Collector's Office.
of the Levy to Date
Total Collections
Collected within
70
Fiscal Year General Percent of
Ended Obligation Revenue Loans Revenue Loans Personal
September 30, Bonds Bonds Payable Bonds Payable Total Income (1)
2003 --$ 29,271,000$ --$ 6,625,000$ --$ 35,896,000$ 0.23%
2004 -- 29,164,892 -- 6,430,000 -- 35,594,892 0.24%
2005 -- 30,850,606 -- 6,010,000 -- 36,860,606 0.24%
2006 -- 33,085,960 -- 5,785,000 -- 38,870,960 0.23%
2007 -- 31,695,102 -- 5,200,000 -- 36,895,102 0.25%
2008 -- 33,987,811 5,000,000 5,200,000 339,919 44,527,730 0.22%
2009 -- 32,040,160 -- 4,835,000 2,387,341 39,262,501 0.25%
2010 -- 29,950,678 -- 4,450,000 4,695,812 39,096,490 0.26%
2011 - 27,757,222 - 4,130,000 4,497,388 36,384,610 0.29%
2012 - 25,543,132 - 3,655,000 4,254,706 33,452,838 0.33%
Governmental Activities
VILLAGE OF KEY BISCAYNE, FLORIDA
RATIOS OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
(1) Personal income amounts are disclosed on page 76 on the demographic schedule.
Business-Type
Activities
71
VILLAGE OF KEY BISCAYNE, FLORIDA
RATIOS OF GENERAL BONDED DEBT OUTSTANDING
LAST TEN FISCAL YEARS
The Village does not have general obligation debt.
72
Percentage Amount
Net Applicable to Applicable to
Debt the Village of the Village of
Government Unit Outstanding Key Biscayne (1)Key Biscayne
Direct:
Village of Key Biscayne 25,543,132$ 100.00% 25,543,132$
Overlapping debt:
Miami-Dade County 1,351,262 1.63% 22,075
Miami-Dade County School Board 161,860 1.38% 2,227
Subtotal, Overlapping Debt 24,302
Village of Key Biscayne Direct Debt 25,543,132
Total Direct and Overlapping Debt 25,567,434$
(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.
2012
VILLAGE OF KEY BISCAYNE, FLORIDA
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
SEPTEMBER 30, 2012
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.
Sources: Data provided by the Miami-Dade County Finance Department and the Miami-Dade
County School Board.
73
Fiscal Year Non-
Ended Ad Valorem
September 30, Revenues Principal Interest Coverage
2003 5,741,733$ 1,415,000$ 1,064,028$ 2.86
2004 5,767,200 1,583,924 1,135,384 2.14
2005 8,531,598 1,161,298 1,300,596 3.47
2006 11,535,790 1,214,646 1,413,272 4.27
2007 8,846,052 1,418,401 1,556,396 3.42
2008 9,620,693 1,679,991 1,444,576 3.08
2009 10,657,548 2,051,307 1,450,649 3.04
2010 10,100,329 2,140,684 1,386,913 3.40
2011 10,854,660 2,348,506 1,520,433 4.81
2012 11,549,163 2,436,139 828,393 5.12
VILLAGE OF KEY BISCAYNE, FLORIDA
PLEDGED REVENUE COVERAGE
LAST TEN FISCAL YEARS
Debt Service
Source: Village of Key Biscayne Finance Department.
74
Median Per Capita
Household Personal Unemployment
Year Population (1) Income (1) Income (1) Rate (2)
2003 10,507 83,127$ 34,119$ 5.8%
2004 10,507 85,698 35,175 5.1%
2005 10,507 88,349 36,262 4.2%
2006 10,507 91,081 37,384 3.9%
2007 10,507 93,898 38,540 4.6%
2008 10,507 96,802 39,732 6.9%
2009 10,507 99,796 40,961 11.0%
2010 12,344 102,790 42,190 12.1%
2011 12,344 105,874 43,456 9.4%
2012 12,344 109,050 44,759 8.5%
Sources:
(1) City-data.com
(2) United States Bureau of Labor Statistics
VILLAGE OF KEY BISCAYNE, FLORIDA
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN FISCAL YEARS
75
Percentage of Percentage of
Total Village Total Village
Employer Employees (1) Rank Employment Employees Rank Employment
Ritz Carlton Key Biscayne 1,500 1 not known 1,500 1 not known
Sonesta Beach Resort - - - 1,500 2 not known
Winn Dixie Stores, Inc. 250 2 not known 250 3 not known
Village of Key Biscayne 117 3 not known 100 4 not known
All remaining employers are of an extremely small number
Total 1,867 3,350
Notes: (1) All amounts are estimated for timely inclusion in report. Requests for information received no response.
VILLAGE OF KEY BISCAYNE, FLORIDA
PRINCIPAL EMPLOYERS
2012 2006
CURRENT YEAR AND SIX YEARS AGO
76
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Number of Employees
General government 5 6 7 6 6 6 8 7 7 7
Public safety 74 76 79 79 79 78 81 80 80 81
Building, planning and zoning 12 12 13 13 14 13 13 13 13 15
Public works 5 5 5 5 4 4 4 4 4 4
Parks and recreation 4 4 6 6 7 7 10 10 10 10
Total Number of Employees 100 103 110 109 110 108 116 114 114 117
Source: Village of Key Biscayne Finance Department budget.
LAST TEN FISCAL YEARS
FULL-TIME EQUIVALENT VILLAGE GOVERNMENT EMPLOYEES BY FUNCTION
VILLAGE OF KEY BISCAYNE, FLORIDA
77
Function/Program 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Public safety:
Police:
Police personnel and officers 40 41 40 40 40 39 42 41 41 42
Police calls for service 20,660 19,004 16,510 13,006 35,412 36,190 37,002 34,935 37,646 31,214
Parking violations 639 628 682 801 996 776 824 523 563 638
Traffic violations 2,433 3,035 1,397 1,468 1,104 946 975 1,425 1,269 1,542
Fire:
Fire personnel 34 35 39 39 39 39 39 39 39 39
Fire incidents 1,114 1,148 1,403 1,103 998 1,006 1,012 1,556 1,841 1,369
Fire inspections performed 840 307 332 269 220 305 229 267 469 323
Planning and development:
Business permits issued 2,581 3,061 3,045 3,000 3,504 3,620 2,451 2,794 2,969 3,402
Business tax receipts issued 668 428 433 475 914 1,224 1,324 1,142 1,166 1,228
Culture and recreation:
Number of building users -- -- 6,373 6,461 5,778 4,673 4,268 3,990 4,127 4,338
Solid waste:
Residential accounts 1,200 1,200 1,200 1,200 1,200 1,299 1,298 1,302 1,292 1,264
Sources: Various Village Departments.
LAST TEN FISCAL YEARS
OPERATING INDICATORS BY FUNCTION/PROGRAM
VILLAGE OF KEY BISCAYNE, FLORIDA
78
Function/Program 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
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 1
Swimming pools -- -- 1 1 1 1 1 1 1 1
Sources: Various Village Departments.
LAST TEN FISCAL YEARS
CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM
VILLAGE OF KEY BISCAYNE, FLORIDA
79
REPORTING SECTION
Marcum LLP n One Southeast Third Avenue n Tenth Floor n Miami, Florida 33131 n Phone 305.995.9600 n Fax 305.995.9601
marcumllp.com
80
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
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, 2012, and
have issued our report thereon dated May 31, 2013. 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
Management of the Village is responsible for establishing and maintaining effective 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.
81
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.
Miami, FL
May 31, 2013
Marcum LLP n One Southeast Third Avenue n Tenth Floor n Miami, Florida 33131 n Phone 305.995.9600 n Fax 305.995.9601
marcumllp.com
82
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 Village of Key Biscayne, Florida (the Village) as
of and for the fiscal year ended September 30, 2012, and have issued our report thereon dated
May 31, 2013.
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. We have issued our
Independent Auditors’ Report on Internal Control over Financial Reporting and Compliance and
Other Matters. Disclosures in that report, which is dated May 31, 2013, 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’ report or schedule:
¾ 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 findings or
recommendations made in the preceding annual financial audit report.
¾ 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.
¾ 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.
¾ Section 10.554(l)(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.
83
¾ Section 10.554(l)(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.
¾ 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.
¾ Section 10.554(1)(i)7.a., Rules of the Auditor General, requires a statement 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.
¾ 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 audit report for
the fiscal year ended September 30, 2012. In connection with our audit, we determined
that these two reports were in agreement.
¾ Pursuant to Sections 10.554(l)(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.
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 Council, 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
May 31, 2013