HomeMy Public PortalAboutCAFR 2013.pdfVILLAGE OF KEY BISCAYNE, FLORIDA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FISCAL YEAR ENDED SEPTEMBER 30, 2013
Prepared by:
THE FINANCE DEPARTMENT
VILLAGE OF KEY BISCAYNE, FLORIDA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013
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 .................................................................................................. 1-3
Management’s Discussion and Analysis (Required Supplementary Information) ................. 4-11
Basic Financial Statements
Government-Wide Financial Statements:
Statement of Net Position .....................................................................................................12
Statement of Activities ..........................................................................................................13
Fund Financial Statements:
Governmental Fund Financial Statements:
Balance Sheet .....................................................................................................................14
Statement of Revenues, Expenditures and Changes in Fund Balances .............................15
Reconciliation of the Statement of Revenues, Expenditures and Changes in
Fund Balances of Governmental Funds to the Statement of Activities ..........................16
Proprietary Fund Financial Statements:
Statement of Net Position ..................................................................................................17
Statement of Revenues, Expenses and Changes in Net Position .......................................18
Statement of Cash Flows ...................................................................................................19
Fiduciary Fund Financial Statements:
Statement of Fiduciary Net Position ..................................................................................20
Statement of Changes in Fiduciary Net Position ...............................................................21
Notes to Basic Financial Statements .................................................................................. 22-57
Required Supplementary Information (Other Than MD&A)
Budgetary Comparison Schedule – General Fund ......................................................................58
Notes to Budgetary Comparison Schedule .................................................................................59
Schedule of Funding Progress – Pension Trust Fund .................................................................60
Schedule of Employer Contributions – Pension Trust Fund ......................................................61
Schedule of Funding Progress – Other Post-Employment Benefits ...........................................62
VILLAGE OF KEY BISCAYNE, FLORIDA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013
TABLE OF CONTENTS
Statistical Section
Net Position by Component ........................................................................................................63
Changes in Net Position ........................................................................................................ 64-65
Fund Balances of Governmental Funds ......................................................................................66
Changes in Fund Balances of Governmental Funds ...................................................................67
General Governmental Tax Revenues by Source .......................................................................68
Net Assessed Value and Estimated Actual Value of Taxable Property .....................................69
Property Tax Rates – Direct and Overlapping Governments .....................................................70
Principal Property Taxpayers ......................................................................................................71
Property Tax Levies and Collections ..........................................................................................72
Ratios of Outstanding Debt by Type ..........................................................................................73
Ratios of General Bonded Debt Outstanding .............................................................................74
Direct and Overlapping Governmental Activities Debt .............................................................75
Pledged Revenue Coverage ........................................................................................................76
Demographic and Economic Statistics .......................................................................................77
Principal Employers ....................................................................................................................78
Full-Time Equivalent Village Government Employees by Function .........................................79
Operating Indicators by Function/Program ................................................................................80
Capital Asset Statistics by Function/Program ............................................................................81
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 ................... 82-83
Management Letter in Accordance with the Rules of the Auditor General of the
State of Florida ................................................................................................................... 84-85
INTRODUCTORY SECTION
vi
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
vii
FINANCIAL SECTION
INDEPENDENT AUDITORS’ REPORT
Marcum LLP n One Southeast Third Avenue n 16th Floor n Miami, Florida 33131 n Phone 305.995.9600 n Fax 305.995.9601 n www.marcumllp.com
1
INDEPENDENT AUDITORS’ REPORT
Honorable Mayor, Village Council and Village Manager
Village of Key Biscayne, Florida
Report on the Financial Statements
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 and for the fiscal year ended September 30,
2013, and the related notes to the financial statements, which collectively comprise the Village’s
basic financial statements as listed in the table of contents.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this
includes the design, implementation, and maintenance of internal control relevant to the preparation
and fair presentation of financial statements that are free from material misstatement, whether due
to fraud or error.
Auditors’ Responsibility
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 from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on the auditors’ judgment,
including the assessment of the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor considers internal control
relevant to the Village’s preparation and fair presentation of the financial statements in order to
design 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. Accordingly, we
express no such opinion. An audit also includes evaluating the appropriateness of accounting
policies used and the reasonableness of significant accounting estimates made by management, as
well as evaluating the overall presentation of the financial statements.
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We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our audit opinions.
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, as of September 30, 2013, and
the respective changes in financial position and, where applicable, cash flows thereof for the fiscal
year then ended in accordance with accounting principles generally accepted in the United States of
America.
Emphasis of a Matter
As discussed in Note 1 to the financial statements, the Village implemented Governmental
Accounting Standards Board (GASB) Statement No. 63, Financial Reporting of Deferred Outflows
of Resources, Deferred Inflows of Resources, as of October 1, 2012. Our opinion is not modified
with respect to this matter.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
management’s discussion and analysis on pages 4 through 11, the schedules of funding progress on
pages 60 and 62, and the schedule of employer contributions on page 61 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 who 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 applied certain limited procedures to the required
supplementary information in accordance with auditing standards generally accepted in the United
States of America, which consisted of inquiries of management about 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.
Other Information
The introductory and statistical sections have not been subjected to the auditing procedures applied
in the audit of the basic financial statements, and accordingly, we do not express an opinion or
provide any assurance on it.
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Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated March 28,
2014 on our consideration of the Village's internal control over financial reporting and on 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 internal control over financial reporting or on compliance. That report is an integral part of an
audit performed in accordance with Government Auditing Standards in considering the Village’s
internal control over financial reporting and compliance.
Miami, FL
March 28, 2014
MANAGEMENT’S DISCUSSION AND ANALYSIS
(MD&A)
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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, 2013. 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-iv 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 resulting in a net position balance of $80,145,586.
The Village’s total net position decreased by $1,520,429. Key components of the Village’s net position
and change in net position are reflected in the tables in the government-wide financial analysis section.
At the close of the current fiscal year, the Village’s governmental funds reported an ending fund balance
of $23,290,704, an increase of $2,952,259 in comparison with the prior year.
Overview of the Financial Statements
This discussion and analysis are intended to serve as an introduction to the Village of Key Biscayne’s basic
financial statements. The Village of Key Biscayne’s basic financial statements comprise three components:
1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial
statements. This report also contains 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 position presents information on all of the Village of Key Biscayne’s assets and
liabilities, with a difference between the two reported as net position. Over time, increases or decreases in net
position may serve as a useful indicator of whether the financial position of the Village is improving or
deteriorating.
The statement of activities presents information showing how the government’s net position changed during
the most recent fiscal year. All changes in net position 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 12 and 13 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 three fund categories: governmental funds,
proprietary funds and a fiduciary fund.
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 14 to 16 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 17-19 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 20-21 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 22 to 57 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 58 to 62 of this report.
Government-wide Financial Analysis
As noted earlier, net position 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 $80,145,586 at the close of the most
recent fiscal year.
The portion of the Village’s net position that reflects its net investment in capital assets (e.g., land and
equipment) is $59,599,621. The Village of Key Biscayne uses these capital assets to provide services to
citizens; consequently, these assets are not available for future spending.
Our analysis of the financial statements of the Village begins below. The Statement of Net Position and the
Statement of Activities report information about the Village’s activities that will help answer questions about
the position of the Village. A comparative analysis is provided with prior year information.
Net Position
A summary of the Village’s Net Position is presented in Table A-1 and a Summary of the Changes in Net
Position is presented in Table A-2.
2013 2012 2013 2012 2013 2012
Current assets 25,365,145$ 22,403,276$ 536,762$ 868,716$ 25,901,907$ 23,271,992$
Capital assets, net 73,041,630 73,154,203 23,203,899 24,371,976 96,245,529 97,526,179
Total Assets 98,406,775 95,557,479 23,740,661 25,240,692 122,147,436 120,798,171
Current liabilities 1,890,728 1,908,636 97,596 162,521 1,988,324 2,071,157
Noncurrent liabilities 32,694,582 29,151,293 7,018,944 7,909,706 39,713,526 37,060,999
Total Liabilities 34,585,310 31,059,929 7,116,540 8,072,227 41,701,850 39,132,156
Net investment in
capital assets 43,714,666 44,373,229 15,884,955 16,462,270 59,599,621 60,835,499
Restricted 3,138,445 1,627,771 -- -- 3,138,445 1,627,771
Unrestricted 16,968,354 18,496,550 439,166 706,195 17,407,520 19,202,745
Total Net Position 63,821,465$ 64,497,550$ 16,324,121$ 17,168,465$ 80,145,586$ 81,666,015$
Table A - 1
Summary of Net Position
Governmental Activities Business-type Activities Total
As demonstrated in Table A-1, Summary of Net Position, the Village’s current position decreased
throughout the year. The decrease is mainly attributable to ongoing capital improvements.
7
2013 2012 2013 2012 2013 2012
Revenues
Program revenues:
Charges for services 5,697,476$ 5,284,619$ 1,550,594$ 1,523,801$ 7,248,070$ 6,808,420$
Operating grants and contributions 426,917 6,629 -- -- 426,917 6,629
Capital grants and contributions 803,620 783,886 -- -- 803,620 783,886
General revenues:
Property taxes 17,499,835 16,985,109 -- -- 17,499,835 16,985,109
Utility taxes 1,789,909 1,727,651 -- -- 1,789,909 1,727,651
Communications services tax 1,010,931 946,399 -- -- 1,010,931 946,399
Franchise fees 780,245 846,252 -- -- 780,245 846,252
Unrestricted intergovernmental revenue 1,772,208 1,667,597 -- -- 1,772,208 1,667,597
Investment income and miscellaneous 1,644,201 250,682 659 587 1,644,860 251,269
Total Revenues 31,425,342 28,498,824 1,551,253 1,524,388 32,976,595 30,023,212
Expenses
General government 9,344,606 3,379,954 -- -- 9,344,606 3,379,954
Public Safety 13,089,686 13,092,317 -- -- 13,089,686 13,092,317
Parks and Recreation 4,175,408 4,201,578 -- -- 4,175,408 4,201,578
Public Works 2,221,905 1,736,803 -- -- 2,221,905 1,736,803
Building, Zoning and Planning 2,306,446 1,808,574 -- -- 2,306,446 1,808,574
Interest on long-term debt 935,242 843,965 -- -- 935,242 843,965
Stormwater -- -- 715,836 689,287 715,836 689,287
Solid waste collection -- -- 574,686 563,995 574,686 563,995
Sanitary sewer construction -- -- 1,133,209 1,234,279 1,133,209 1,234,279
Total Expenses 32,073,293 25,063,191 2,423,731 2,487,561 34,497,024 27,550,752
Change in Net Position before transfers (647,951) 3,435,633 (872,478) (963,173) (1,520,429) 2,472,460
Transfers (28,134) (28,134) 28,134 28,134 -- --
Changes in Net Position (676,085) 3,407,499 (844,344) (935,039) (1,520,429) 2,472,460
Net Position - Beginning 64,497,550 61,090,051 17,168,465 18,103,504 81,666,015 79,193,555
Net Position - Ending 63,821,465$ 64,497,550$ 16,324,121$ 17,168,465$ 80,145,586$ 81,666,015$
Table A - 2
Summary of Changes in Net Position
Governmental Activities Business-type Activities Total
Business-type Activities
Business-type activities decreased the Village’s net assets by $844,344 after transfers. In fiscal 2013, the
Stormwater and Solid Waste funds both reflected increases in net position as a result of increased collection
of aged receivables. The Sanitary Sewer Fund, which produces no revenue, showed a loss of $1,133,090 due
to depreciation.
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Governmental Activities
General Government,
$9,344,606 , 29.14%
Public Works,
$2,221,905 , 6.93%
Police, $6,065,025 ,
18.91%
Fire, $7,024,661 ,
21.90%
Parks and Recreation,
$4,175,408 , 13.02%
Building, Zoning and
Planning, $2,306,446 ,
7.19%
Interest on Long Term
Debt, $935,242 , 2.92%
Expenses ‐Governmental Activities
General Government
Public Works
Police
Fire
Parks and Recreation
Building, Zoning and Planning
Interest on Long Term Debt
9
Business-type Activities
As noted earlier, the Village of Key Biscayne uses fund accounting to ensure and demonstrate compliance
with finance-related legal requirements.
Governmental funds. The focus of the Village of Key Biscayne’s governmental funds is to provide
information on near-term inflows, outflows, and balances of spend able resources. Such information is
useful in assessing the Village’s financing requirements.
At the end of the current fiscal year, fund balance of the general fund was $17,657,113, an increase of
$3,262,312 in comparison with the prior year. The increase is primarily due the increase in property taxes.
All balances have been categorized and set aside for the following uses: (1) Non-spendable: $272,330, (2)
Restricted: 1,466,704 (3) Committed: $5,065,439 and (4) Assigned: $10,852,640.
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The general fund is the chief operating fund of the Village of Key Biscayne. As a measure of the general
fund’s liquidity, it may be useful to compare total fund balance to total fund expenditures. Total fund
balance represents 69% of total general fund expenditures.
A summary of the general fund’s condensed balance sheet and statement of revenues, expenditures and
changes in fund balance is presented in Table B-1 and B-2 for September 30, 2013 and 2012, is shown as
follows:
2013 2012
Total Assets 19,171,808$ 15,977,747$
Total Liabilities 1,514,695$ 1,582,946$
Fund Balance
Nonspendable fund balance 272,330 303,918
Restricted fund balance 1,466,704 1,054,070
Committed fund balance 5,065,439 4,858,269
Assigned fund balance 10,852,640 8,178,544
Total Fund Balance 17,657,113 14,394,801
Total Liabilities and Fund Balance 19,171,808$ 15,977,747$
2013 2012
Total Revenues 28,914,709$ 27,538,964$
Total Expenditures 25,624,263 24,843,878
Excess 3,290,446 2,695,086
Total Other financing Sources (Uses)(28,134) (5,844,356)
Net Change in Fund Balance 3,262,312$ (3,149,270)$
Table B-1
Summary of Condensed Balance Sheet
Table B-2
Expenditures and Changes in Fund Balances
Summary of Condensed Statement of Revenues,
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 2014 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 of surplus funds from the
general fund to subsidize capital construction of infrastructure throughout the island. For fiscal year 2013 a
total of $1,251,130 was committed to the Capital Improvement Fund for specific projects as detailed in the
Village’s Five Year Capital Improvement Plan.
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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, 2013, the Village’s capital assets net of accumulated depreciation amounted to
$96,245,529 as compared to $97,526,179 as of September 30, 2012. Major capital asset events during the
fiscal year included the following:
Replacement of A/C system in the Administration, Fire Rescue and Community Center buildings
(Civic Center)
Completion of a Tot Lot barrier – Village Green
Upgrades to existing security/access system within the Civic Center
Ongoing upgrades to permitting software
Continuation of the Beach Renourishment program
Continuation of capital lease program - Public Safety Vehicles
Additional information on the Village’s capital assets can be found in Note 7 on pages 37-38 of this report.
Debt Administration
At September 30, 2013, the Village had bonded debt outstanding of $36,077,978 (composed of $28,759,034
in governmental activities and $7,318,944 of business type activities) compared to $33,452,838 as of
September 30, 2012. Of this amount, $8,856,008 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. During FY 2013, the Village issued $5,575,000 School
Improvement Revenue Bonds.
Additional information on the Village’s long-term debt can be found in Note 8 on pages 39-48 of this report.
Economic Factors and Next Year’s Budgets and Rates
As the local and national economy continues to recover, commercial real estate in Miami-Dade is showing
signs of improvement. Miami-Dade County is leading the way in attracting diverse new businesses to our
area. Based on these indicators, the Village of Key Biscayne continues to manage a budget that is responsive
to the needs of its community. Long term financial planning efforts continue, the Village has implemented a
5 year Strategic Plan to determine the priorities for the Village and the initial indicators needed to measure
progress towards these priorities.
The unemployment rate for Miami-Dade County is 7.1%, which is a decrease from a rate of 7.5% a year ago.
This is favorable to the state’s average unemployment rate of 6.8% as of September 30, 2013. All of these
factors were considered during preparation of the Village of Key Biscayne’s budget for the 2014 fiscal year.
The Village’s millage rate for FY 2013 and FY2014 is 3.200.
Requests for Information
This financial report is designed to provide a general overview of the Village of Key Biscayne’s finances for
all those with an interest in the government’s finances. Questions concerning any of the information
provided in this report or requests for additional financial information should be addressed to the Office of
the Village Manager, 88 West McIntyre Street, Key Biscayne, Florida, 33149.
BASIC FINANCIAL STATEMENTS
Business-
Governmental type
Activities Activities Total
Assets
Cash and cash equivalents 17,929,216$ 736,026$ 18,665,242$
Investments 4,755,309 -- 4,755,309
Receivables, net 848,966 429,448 1,278,414
Prepaids 273,280 -- 273,280
Internal balances 664,426 (664,426) --
Net pension asset 199,145 -- 199,145
Unamortized bond issue costs 238,564 35,714 274,278
Restricted assets:
Cash and cash equivalents 280,212 -- 280,212
Investments 176,027 -- 176,027
Capital assets not being depreciated 27,034,312 103,213 27,137,525
Capital assets being depreciated, net 46,007,318 23,100,686 69,108,004
Total Assets 98,406,775 23,740,661 122,147,436
Liabilities
Accounts payable and accrued liabilities 848,398 97,596 945,994
Accrued interest payable 253,996 -- 253,996
Unearned revenue 788,334 -- 788,334
Noncurrent liabilities:
Due within one year 2,915,191 702,236 3,617,427
Due in more than one year 29,231,668 6,616,708 35,848,376
Net OPEB obligation 547,723 -- 547,723
Total Liabilities 34,585,310 7,416,540 42,001,850
Net Position
Net investment in capital assets 43,714,666 15,884,955 59,599,621
Restricted:
Building and zoning 2,458,623 -- 2,458,623
Law enforcement 347,769 -- 347,769
Fire rescue 332,053 -- 332,053
Unrestricted 16,968,354 439,166 17,407,520
Total Net Position 63,821,465$ 16,324,121$ 80,145,586$
VILLAGE OF KEY BISCAYNE, FLORIDA
STATEMENT OF NET POSITION
SEPTEMBER 30, 2013
The accompanying notes are an integral part of these financial statements.
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Charges Operating Capital Business-
for Grants and Grants and Governmental type
Functions/Programs Expenses Services Contributions Contributions Activities Activities Total
Governmental Activities
General government 9,344,606$ 140,587$ --$ --$ (9,204,019)$ --$ (9,204,019)$
Police 6,065,025 1,455 -- -- (6,063,570) -- (6,063,570)
Fire 7,024,661 188,169 -- -- (6,836,492) -- (6,836,492)
Public works 2,221,905 -- -- 803,620 (1,418,285) -- (1,418,285)
Building, zoning and planning 2,306,446 2,744,711 -- -- 438,265 -- 438,265
Parks and recreation 4,175,408 2,622,554 426,917 -- (1,125,937) -- (1,125,937)
Interest on long-term debt 935,242 -- -- -- (935,242) -- (935,242)
Total Governmental Activities 32,073,293 5,697,476 426,917 803,620 (25,145,280) -- (25,145,280)
Business-type Activities
Stormwater 715,836 958,114 -- -- -- 242,278 242,278
Sanitary sewer 1,133,209 -- -- -- -- (1,133,209) (1,133,209)
Solid waste 574,686 592,480 -- -- -- 17,794 17,794
Total Business-type Activities 2,423,731 1,550,594 -- -- -- (873,137) (873,137)
Total 34,497,024$ 7,248,070$ 426,917$ 803,620$ (25,145,280) (873,137) (26,018,417)
General Revenues
Property taxes 17,499,835 -- 17,499,835
Franchise fees based on gross receipts 780,245 -- 780,245
Utility taxes 1,789,909 -- 1,789,909
Communications services tax 1,010,931 -- 1,010,931
Unrestricted intergovernmental revenue 1,772,208 -- 1,772,208
Unrestricted investment earnings 16,722 659 17,381
Miscellaneous 1,627,479 -- 1,627,479
Transfers (28,134) 28,134 --
Total General Revenues and Transfers 24,469,195 28,793 24,497,988
Change in Net Position (676,085) (844,344) (1,520,429)
Net Position - Beginning 64,497,550 17,168,465 81,666,015
Net Position - Ending 63,821,465$ 16,324,121$ 80,145,586$
Changes in Net AssetsProgram Revenues
VILLAGE OF KEY BISCAYNE, FLORIDA
STATEMENT OF ACTIVITIES
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013
Net (Expense) Revenue and
The accompanying notes are an integral part of these financial statements.
13
Transportation Total
Special Capital Governmental
General Revenue Improvements Funds
Assets
Cash and cash equivalents 13,501,347$ --$ 4,427,869$ 17,929,216$
Investments 3,255,309 -- 1,500,000 4,755,309
Receivables, net 712,036 135,648 1,282 848,966
Due from other funds 1,254,759 -- -- 1,254,759
Prepaid items 272,330 -- 950 273,280
Restricted cash and cash equivalents -- 14,212 266,000 280,212
Restricted investments 176,027 -- -- 176,027
Total Assets 19,171,808$ 149,860$ 6,196,101$ 25,517,769$
Liabilities and Fund Balances
Liabilities
Accounts payable and accrued liabilities 726,361$ --$ 122,037$ 848,398$
Due to other funds -- 428,114 162,219 590,333
Unearned revenue 788,334 -- -- 788,334
Total Liabilities 1,514,695 428,114 284,256 2,227,065
Fund Balances (Note 11)
Non-spendable 272,330 -- -- 272,330
Restricted 1,466,704 -- 1,671,741 3,138,445
Committed 5,065,439 -- 4,240,104 9,305,543
Assigned 10,852,640 -- -- 10,852,640
Unassigned -- (278,254) -- (278,254)
Total Fund Balances (Deficit) 17,657,113 (278,254) 5,911,845 23,290,704
Total Liabilities and Fund Balances 19,171,808$ 149,860$ 6,196,101$
Amounts reported for governmental activities in the statement of net position are different because:
Capital assets used in governmental activities are not financial resources and, therefore,
are not reported in the funds 73,041,630
A net pension asset is not considered to represent a financial asset and
therefore is not reported in the governmental funds 199,145
Debt issue costs are expensed in the governmental funds 238,564
Long-term liabilities, including bonds payable, are not due and payable in the current
period and therefore not reported in the funds (Note 2) (32,948,578)
Net Position of Governmental Activities 63,821,465$
VILLAGE OF KEY BISCAYNE, FLORIDA
BALANCE SHEET
GOVERNMENTAL FUNDS
SEPTEMBER 30, 2013
The accompanying notes are an integral part of these financial statements.
14
Transportation Total
Special Capital Governmental
General Revenue Improvements Funds
Revenues
Property taxes 17,499,835$ --$ --$ 17,499,835$
Utility taxes 1,789,909 -- -- 1,789,909
Communications services tax 1,010,931 -- -- 1,010,931
Franchise fees 780,245 -- -- 780,245
Licenses and permits 2,542,103 -- -- 2,542,103
Intergovernmental 1,565,847 1,009,981 -- 2,575,828
Charges for services 3,155,373 -- -- 3,155,373
Interest 16,070 17 635 16,722
Grants 426,917 -- -- 426,917
Miscellaneous income and other 127,479 -- 1,500,000 1,627,479
Total Revenues 28,914,709 1,009,998 1,500,635 31,425,342
Expenditures
Current:
General government 2,236,409 -- 18,779 2,255,188
Fire 7,014,382 -- -- 7,014,382
Police 5,750,069 -- -- 5,750,069
Public works 1,826,782 -- -- 1,826,782
Building, zoning and planning 1,842,175 -- -- 1,842,175
Parks and recreation 4,092,835 -- 4,092,835
Capital outlay 97,608 -- 2,196,460 2,294,068
Debt service:
Principal 2,094,829 429,098 7,189 2,531,116
Interest and fiscal charges 669,174 168,811 75,424 913,409
Total Expenditures 25,624,263 597,909 2,297,852 28,520,024
Excess (deficiency) of revenues
over expenditures 3,290,446 412,089 (797,217) 2,905,318
Other Financing Sources (Uses)
Issuance of debt -- -- 5,575,075 5,575,075
Payment under interlocal agreement -- -- (5,500,000) (5,500,000)
Transfers out (28,134) -- -- (28,134)
Total Other Financing Sources (Uses)(28,134) -- 75,075 46,941
Net Change in Fund Balances 3,262,312 412,089 (722,142) 2,952,259
Fund Balances (Deficit) - Beginning 14,394,801 (690,343) 6,633,987 20,338,445
Fund Balances (Deficit) - Ending 17,657,113$ (278,254)$ 5,911,845$ 23,290,704$
VILLAGE OF KEY BISCAYNE, FLORIDA
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013
The accompanying notes are an integral part of these financial statements.
15
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) 2,952,259$
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 depreciation exceeded
capital outlays in the current period.
The details of the difference are as follows:
Cost of assets 2,253,101$
Depreciation expense (2,365,674) (112,573)
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. Also, governmental funds report the effect
of insurance costs, and similar items when debt is first issued,
whereas these amounts are deferred and amortized in the
statement of activities.
The detail of the differences are as follows:
Debt payments 2,359,098
Capital lease payments 169,226
Debt issuance cost 75,000
Bond proceeds (5,575,000) (2,971,676)
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 (319,209)
Accrued interest (75,628)
Amortization of debt issuance costs (18,218)
Net OPEB obligation (177,404)
Net pension asset 46,634
Other items (270) (544,095)
Change in net position of governmental activities (Page 12) (676,085)$
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, 2013
The accompanying notes are an integral part of these financial statements.
16
Stormwater Sanitary
Utility Sewer Solid
System Construction Waste Totals
Assets
Current Assets
Cash and cash equivalents 438,716$ 83,020$ 214,290$ 736,026$
Accounts receivables, net 249,953 -- 179,495 429,448
Total Current Assets 688,669 83,020 393,785 1,165,474
Noncurrent Assets
Capital assets not being depreciated 103,213 -- -- 103,213
Capital assets being depreciated, net 6,272,245 16,828,441 -- 23,100,686
Unamortized bond issue costs, net 35,714 -- -- 35,714
Total Noncurrent Assets 6,411,172 16,828,441 -- 23,239,613
Total Assets 7,099,841 16,911,461 393,785 24,405,087
Liabilities
Current Liabilities
Accounts payable and accrued liabilities 38,427 11,949 47,220 97,596
Due to other funds 662,294 -- 2,132 664,426
Current portion of revolving loans -- 202,236 -- 202,236
Current portion of revenue bonds payable 500,000 -- -- 500,000
Total Current Liabilities 1,200,721 214,185 49,352 1,464,258
Noncurrent Liabilities
Revenue bonds 2,670,000 -- -- 2,670,000
Revolving loans -- 3,946,708 -- 3,946,708
Total Noncurrent Liabilities 2,670,000 3,946,708 -- 6,616,708
Total Liabilities 3,870,721 4,160,893 49,352 8,080,966
Net Position
Net investment in capital assets 3,205,458 12,679,497 -- 15,884,955
Unrestricted 23,662 71,071 344,433 439,166
Total Net Position 3,229,120$ 12,750,568$ 344,433$ 16,324,121$
Business-type Activities -
Enterprise Funds
VILLAGE OF KEY BISCAYNE, FLORIDA
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
SEPTEMBER 30, 2013
The accompanying notes are an integral part of these financial statements.
17
Stormwater Sanitary
Utility Sewer Solid
System Construction Waste Totals
Operating Revenues
Charges for services 958,114$ --$ 592,480$ 1,550,594$
Operating Expenses
General and administrative 313,905 -- 574,686 888,591
Depreciation 307,434 989,908 -- 1,297,342
Total Operating Expenses 621,339 989,908 574,686 2,185,933
Operating Income (Loss)336,775 (989,908) 17,794 (635,339)
Non-Operating Revenues (Expenses)
Interest income 452 119 88 659
Interest expense (87,355) (143,301) -- (230,656)
Amortization of bond issue costs (7,142) -- -- (7,142)
Total Non-Operating
Revenues (Expenses)(94,045) (143,182) 88 (237,139)
Income (Loss) before Transfers 242,730 (1,133,090) 17,882 (872,478)
Transfers in -- 28,134 -- 28,134
Change in Net Position 242,730 (1,104,956) 17,882 (844,344)
Net Position- Beginning 2,986,390 13,855,524 326,551 17,168,465
Net Position - Ending 3,229,120$ 12,750,568$ 344,433$ 16,324,121$
Business-type Activities -
Enterprise Funds
VILLAGE OF KEY BISCAYNE, FLORIDA
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION
PROPRIETARY FUNDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013
The accompanying notes are an integral part of these financial statements.
18
Solid
Stormwater Sanitary Waste
Utility Sewer (A Nonmajor
System Construction Fund) Totals
Cash Flows from Operating Activities
Receipts from customers and users 1,007,300$ --$ 640,635$ 1,647,935$
Payments for interfund services 96,510 -- -- 96,510
Payments to suppliers (289,012) (90,570) (573,934) (953,516)
Net Cash Provided by (Used in) Operating Activities 814,798 (90,570) 66,701 790,929
Cash Flows from Non-Capital Financing Activities
Transfers in from other funds -- 28,134 -- 28,134
Cash Flows from Capital and Related
Financing Activities
Payments for construction of capital assets (129,265) 499 -- (128,766)
Payments on revenue bonds (485,000) -- -- (485,000)
Payments on revolving loans -- (105,762) -- (105,762)
Interest paid (87,353) (143,301) -- (230,654)
Net Cash Used in Capital and Related
Financing Activities (701,618) (248,564) -- (950,182)
Cash Flows from Investing Activities
Interest received 452 119 88 659
Net Increase (Decrease) in Cash and Cash Equivalents 113,632 (310,881) 66,789 (130,460)
Cash and Cash Equivalents - Beginning 325,084 393,901 147,501 866,486
Cash and Cash Equivalents - Ending 438,716$ 83,020$ 214,290$ 736,026$
Reconciliation of Operating Income (Loss) to Net
Cash Provided by (Used in) Operating Activities
Operating income 336,775$ (989,908)$ 17,794$ (635,339)$
Adjustments to reconcile operating income to net
cash provided by (used in) operating activities:
Depreciation 307,434 989,908 -- 1,297,342
Changes in operating assets and liabilities:
(Increase) decrease in:
Accounts receivable 49,066 -- 46,143 95,209
Due from other funds 120 -- -- 120
Increase (decrease) in:
Accounts payable and accrued liabilities 24,893 (90,570) 752 (64,925)
Due to other funds 96,510 -- 2,012 98,522
Total adjustments 478,023 899,338 48,907 1,426,268
Net Cash Provided by (Used in) Operating Activities 814,798$ (90,570)$ 66,701$ 790,929$
Business-type Activities -
Enterprise Funds
VILLAGE OF KEY BISCAYNE, FLORIDA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013
The accompanying notes are an integral part of these financial statements.
19
Assets
Investments
Money market funds 751,019$
Common stocks 7,103,101
Mutual funds 15,466,051
Private equity fund 613,265
Investments held in the Share Plan 980,459
Investments held in the DROP Plan 221,931
Total Investments 25,135,826
Contributions Receivable
Village (including State) 63,615
Total Assets 25,199,441
Liabilities
Accounts payable and accrued expenses 27,503
Advance contribution from employer 56,220
Total Liabilities 83,723
Net Position
Net Position Restricted for Pension Benefits 25,115,718$
VILLAGE OF KEY BISCAYNE, FLORIDA
STATEMENT OF FIDUCIARY NET POSITION
PENSION TRUST FUND
SEPTEMBER 30, 2013
The accompanying notes are an integral part of these financial statements.
20
Additions
Contributions
Plan members 673,310$
Village (including State) 1,292,992
Total Contributions 1,966,302
Investment Income
Net appreciation in the fair value of investments 2,171,976
Net appreciation in the fair value of investments (Share and DROP)82,404
Interest and dividends 621,645
Other 425
2,876,450
Less: investment expenses (77,312)
Net Investment Income 2,799,138
Total Additions 4,765,440
Deductions
Benefits paid 246,379
Administrative expenses 69,362
Total Deductions 315,741
Change in Net Position 4,449,699
Net Position, Restricted for Pension Benefits - Beginning,
as Previously Reported 19,689,136
Prior period adjustment (Note 16) 976,883
Net Position, Restricted for Pension Benefits - Beginning as Restated 20,666,019
Net Position, Restricted for Pension Benefits - Ending 25,115,718$
VILLAGE OF KEY BISCAYNE, FLORIDA
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
PENSION TRUST FUND
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013
The accompanying notes are an integral part of these financial statements.
21
NOTES TO BASIC FINANCIAL STATEMENTS
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013
22
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 position 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, 2013
23
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, 2013
24
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 proprietary funds in the basic financial statements:
The Stormwater Utility Fund (a major fund) accounts for the construction and maintenance
of the Village’s stormwater system.
The Sanitary Sewer Fund (a major 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, 2013
25
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
C. MEASUREMENT FOCUS, BASIS OF ACCOUNTING, AND FINANCIAL STATEMENT
PRESENTATION (CONTINUED)
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.
D. IMPLEMENTATION OF GOVERNMENTAL ACCOUNTING STANDARDS BOARD STATEMENTS
The Village implemented the following GASB Statements during the fiscal year ended
September 30, 2013:
GASB Statement No. 62, “Codification of Accounting and Financial Reporting
Guidance Contained in Pre-November 30, 1989 FASB and AICPA Pronouncements”
This statement classifies all sources of generally accepted accounting principles for state
and local governments so that the authoritative accounting and financial reporting literature
will be together in a single source, with that guidance modified as necessary to
appropriately recognize the governmental environment and the needs of governmental
financial statement users. The Village elected to include all pre-November 30, 1989 FASB
pronouncements which are now codified in GASB 62.
GASB Statement No. 63, “Financial Reporting of Deferred Outflows of Resources,
Deferred Inflows of Resources, and Net Position”
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013
26
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
D. IMPLEMENTATION OF GOVERNMENTAL ACCOUNTING STANDARDS BOARD STATEMENTS
(CONTINUED)
This Statement provides financial reporting guidance for deferred outflows of resources and
deferred inflows of resources. It further identifies net position as the residual of all other
elements presented in a statement of net position. Implementation did have a significant
impact on the financial statements.
E. ASSETS, LIABILITIES, AND NET POSITION 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, intangible and
infrastructure assets (e.g., utility plant, roads, bridges, sidewalks, and similar items), are
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013
27
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
E. ASSETS, LIABILITIES, AND NET POSITION OR EQUITY (CONTINUED)
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.
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 2013.
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/Unavailable Revenue
Unavailable revenue is recorded for governmental fund revenues 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.
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013
28
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
E. ASSETS, LIABILITIES, AND NET POSITION OR EQUITY (CONTINUED)
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, 2013 and were subsequently
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 position. 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, 2013
29
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
E. ASSETS, LIABILITIES, AND NET POSITION 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. 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
governmental funds (other than the General Fund) that are not classified as
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013
30
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
E. ASSETS, LIABILITIES, AND NET POSITION OR EQUITY (CONTINUED)
9. Fund Equity (continued)
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.
See Note 11 for the detail of the amounts included in the various fund balance
classifications.
10. Net Position
Net position of the government-wide and proprietary funds are categorized as net
investment in capital assets, restricted or unrestricted. Net investment in capital assets,
is that portion of net position 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 position 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 position consists of all net assets that do not meet the
definition of either of the other two components.
11. Use of Estimates
The preparation of financial statements in conformity with accounting principles
generally accepted in the United States requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements. Estimates also
affect the reported amounts of revenues and expenditures/expenses during the reporting
period. Actual results could differ from those estimates.
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013
31
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
E. ASSETS, LIABILITIES, AND NET POSITION OR EQUITY (CONTINUED)
12. Flow Assumptions
Net Position Flow Assumption
Sometimes the Village will fund outlays for a particular purpose from both
restricted and unrestricted resources. In order to calculate the amounts to report
as restricted - net position and unrestricted – net position in the government-wide
financial statements, a flow assumption must be made about the order in which
the resources are considered to be applied. It is the Village’s policy to consider
restricted – net position to have been depleted before unrestricted – net position is
applied.
Fund Balance Flow Assumption
Sometimes the Village will fund outlays for a particular purpose from both
restricted and unrestricted resources (the total of committed, assigned, and
unassigned fund balance). In order to calculate the amounts to report as
restricted, committed, assigned, and unassigned fund balance in the governmental
fund financial statements, a flow assumption must be made about the order in
which the resources are considered to be applied. It is the Village’s policy to
consider restricted fund balance to have been depleted before using any of the
components of unrestricted fund balance. Further, when the components of
unrestricted fund balance can be used for the same purpose, committed fund
balance is depleted first, followed by assigned fund balance. Unassigned fund
balance, if any, is applied last.
NOTE 2 – EXPLANATION OF CERTAIN DIFFERENCES BETWEEN THE GOVERNMENTAL FUND
BALANCE SHEET AND THE GOVERNMENT-WIDE STATEMENT OF NET POSITION
The governmental fund balance sheet includes a reconciliation between fund balance – total
governmental funds and net position – governmental activities as reported in the
government-wide statement of net position. 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 $32,948,578
difference are as follows:
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013
32
NOTE 2 – EXPLANATION OF CERTAIN DIFFERENCES BETWEEN THE GOVERNMENTAL FUND
BALANCE SHEET AND THE GOVERNMENT-WIDE STATEMENT OF NET POSITION
(CONTINUED)
Bonds Payable 28,759,034$
Capital Leases Payable 567,930
Compensated Absences 2,819,895
Accrued Interest Payable 253,996
Net OPEB Obligation 547,723
32,948,578$
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 $7,030,475 which are presented as investments in the accompanying financial
statements.
INVESTMENTS
The Village’s investment policy follows the requirements of Florida Statutes Chapter
218.415, and attempts to promote, in order of priority, safety of principal, adequate
liquidity, and maximization of total return. The Village’s investment policy authorizes
investments in direct obligations of the U.S. Government, its agencies or instrumentalities.
The Village is also authorized to invest in SEC registered money market mutual funds,
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013
33
NOTE 3 – DEPOSITS AND INVESTMENTS (CONTINUED)
INVESTMENTS (CONTINUED)
insured or fully collateralized deposits, repurchase agreements secured by direct obligations
of the U.S. Government, and authorized intergovernmental investment pools. The
investment policy defined in the statutes attempts to promote, through state assistance, the
maximization of net interest earnings on invested surplus funds of local units of
governments while limiting the risk to which the funds are exposed. The Village maintains
a separate investment policy for its pension plan.
For the Village’s pension plan, a Master Custodian Agreement is maintained whereby the
investment securities are held in the Plan's name by a financial institution acting as the
Plan’s agent.
INVESTMENTS – VILLAGE
As of September 30, 2013, the Village had the following fixed income investments with the
corresponding maturities in its portfolio:
Fair
Investments Value 1-5
Repurchase Agreements 5,746,496$ 5,746,496$
(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, 2013
34
NOTE 3 – DEPOSITS AND INVESTMENTS (CONTINUED)
INVESTMENTS – VILLAGE (CONTINUED)
Custodial Credit Risk
For an investment, custodial credit risk is the risk that, in the event of the failure of the
counterparty, the Village will not be able to recover the value of its investments or
collateral securities that are in the possession of an outside party. The Village’s $5.7
million investment in repurchase agreements is held by the investment’s counterparty, not
in the name of the Village. The Village’s investment policy does not have a limit on
holding of securities by counterparties.
INVESTMENTS – PENSION PLAN
As of September 30, 2013, the Village’s Defined Benefit Pension Plan had the following
fixed income investments with the corresponding maturities in its portfolio:
Fair Less
Investments Value Than 1 1-5 6-10 10+
Bond Mutual Funds 7,159,973$ 235,130$ 3,628,824$ 1,724,446$ 1,571,573$
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, 2013
35
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, 2013, 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, 2013 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 73,044$ --$ --$ 249,953$ 201,135$ --$ 524,132$
Contributions -- -- -- -- -- 63,615 63,615
Property Taxes 81,487 -- -- -- -- -- 81,487
Intergovernmental 549,873 135,648 -- -- -- -- 685,521
Other 7,632 -- 1,282 -- -- -- 8,914
Gross Receivables 712,036 135,648 1,282 249,953 201,135 63,615 1,363,669
Less: Allowance for
Uncollectibles -- -- -- -- (21,640) -- (21,640)
Net Total Receivables 712,036$ 135,648$ 1,282$ 249,953$ 179,495$ 63,615$ 1,342,029$
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013
36
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, 2013 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, 2013, there were no material delinquent taxes.
NOTE 6 – INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS
The composition of interfund balances as of September 30, 2013 is as follows:
Due from/to other funds:
Receivable Fund Payable Fund Amount
General Special Revenue 428,114$
Capital Improvements 162,219
Stormwater 662,294
Solid Waste 2,132
1,254,759$
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, 2013
37
NOTE 6 – INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS (CONTINUED)
Interfund transfers:
Transfers Out Transfer In Amount
General Fund Sanitary Sewer 28,134$
Transfers are used to move unrestricted general fund revenues to finance various capital
projects in accordance with budgetary authorizations.
NOTE 7 – CAPITAL ASSETS
Capital asset activity for the year ended September 30, 2013 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 4,905,913 294,562 -- 5,200,475
Total Capital Assets, Not Being Depreciated 26,739,750 294,562 -- 27,034,312
Capital Assets, Being Depreciated
Buildings 24,788,318 209,946 -- 24,998,264
Improvements other than buildings 30,368,604 666,684 -- 31,035,288
Furniture, fixtures and equipment 7,523,016 1,081,909 -- 8,604,925
Total Capital Assets, Being Depreciated 62,679,938 1,958,539 -- 64,638,477
Less: Accumulated Depreciation for
Buildings (4,889,071) (505,105) -- (5,394,176)
Improvements other than buildings (5,807,850) (981,066) -- (6,788,916)
Furniture, fixtures and equipment (5,568,564) (879,503) -- (6,448,067)
Total Accumulated Depreciation (16,265,485) (2,365,674) -- (18,631,159)
Total Capital Assets, Being Depreciated, Net 46,414,453 (407,135) -- 46,007,318
Governmental Activities Capital Assets, Net 73,154,203$ (112,573)$ --$ 73,041,630$
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013
38
NOTE 7 – CAPITAL ASSETS (CONTINUED)
Beginning Ending
Balance Increases Decreases Balance
Business-type Activities
Capital Assets, Not Being Depreciated
Construction in progress --$ 103,213$ --$ 103,213$
Total Capital Assets, Not Being Depreciated -- 103,213 -- 103,213
Capital Assets, Being Depreciated
Stormwater utility system 10,700,892 26,050 -- 10,726,942
Sanitary Sewer system 18,808,259 -- -- 18,808,259
Total Capital Assets, Being Depreciated 29,509,151 26,050 -- 29,535,201
Less: Accumulated Depreciation for
Stormwater utility system (4,147,264) (307,433) -- (4,454,697)
Sanitary Sewer system (989,909) (989,909) -- (1,979,818)
Total Accumulated Depreciation (5,137,173) (1,297,342) -- (6,434,515)
Total Capital Assets, Being Depreciated, Net 24,371,978 (1,271,292) -- 23,100,686
Business-type Activities Capital Assets, Net 24,371,978$ (1,168,079)$ --$ 23,203,899$
Depreciation expense was charged as functions/programs of the primary government as
follows:
Governmental Activities
General government 1,098,472$
Police 395,123
Fire 314,956
Public works 10,279
Building, zoning and planning 82,573
Parks 464,271
Total Depreciation Expense - Governmental Activities 2,365,674$
Business-type Activities
Stormwater 307,433
Sanitary Sewer 989,909
1,297,342$
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013
39
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, 2013:
Beginning Ending Due Within
Balance Additions Reductions Balance One Year
Governmental Activities
Bonds Payable
Land acquisition and capital improvement
revenue bonds, Series 1999 5,535,000$ --$ (580,000)$ 4,955,000$ 610,000$
Capital improvement revenue refunding
bonds, Series 2011A 6,340,000 -- (645,000) 5,695,000 660,000
Capital improvement revenue refunding
bonds, Series 2011B 6,570,000 -- (560,000) 6,010,000 595,000
Capital improvement and land acquisition
revenue refunding bonds, Series 2011 1,725,000 -- (145,000) 1,580,000 155,000
Transportation tax revenue refunding
bonds, Series 2011 2,634,762 -- (178,637) 2,456,125 182,999
Road improvement revenue bonds,
Series 2006 2,738,370 -- (250,461) 2,487,909 258,185
School improvement revenue bonds,
Series 2012 -- 5,575,000 -- 5,575,000 --
Total Bonds Payable 25,543,132 5,575,000 (2,359,098) 28,759,034 2,461,184
Other Liabilities
Capital leases 737,156 -- (169,226) 567,930 172,018
Compensated absences 2,500,686 1,412,365 (1,093,156) 2,819,895 281,989
Total Other Liabilities 3,237,842 1,412,365 (1,262,382) 3,387,825 454,007
Governmental Activities Long-Term Liabilities 28,780,974$ 6,987,365$ (3,621,480)$ 32,146,859$ 2,915,191$
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 $10,000,000 Land Acquisition and Capital
Improvement Revenue Bonds, Series 1999, the proceeds of which were used for the
acquisition of property and financing of the construction of the Civic Center project. The
bonds mature on July 23, 2019 with final payment due on December 1, 2019. The Village
has pledged non-ad valorem revenues to secure payment of the principal and interest on the
bonds. The bonds are due in annual principal installments. Interest accrues at 4.715% per
annum.
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013
40
NOTE 8 – LONG-TERM DEBT (CONTINUED)
LAND ACQUISITION AND CAPITAL IMPROVEMENT REVENUE BONDS, SERIES 1999
(CONTINUED)
Debt service requirements to maturity are as follows:
Principal Interest Total
Fiscal Year Ending September 30
2014 610,000$ 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 740,000 92,414 832,414
2019-2020 1,590,000 75,912 1,665,912
4,955,000$ 862,727$ 5,817,727$
CAPITAL IMPROVEMENT REVENUE REFUNDING BONDS, SERIES 2011A
On June 13, 2011, the Village issued $6,890,000 of Capital Improvement Revenue
Refunding Bonds, Series 2011A for the purpose of refunding the Village’s Capital
Improvement Revenue Bonds, Series 2000. The bonds mature on December 1, 2020. The
Village has pledged non-ad valorem revenues to secure payment of the principal and
interest on the bonds. The bonds are due in annual principal installments on each
December 1, commencing December 1, 2011. Interest accrues at 2.31% per annum.
Debt service requirements to maturity are as follows:
Principal Interest Total
Fiscal Year Ending September 30
2014 660,000$ 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 715,000 60,349 775,349
2019-2020 2,255,000 78,944 2,333,944
5,695,000$ 541,406$ 6,236,406$
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013
41
NOTE 8 – LONG-TERM DEBT (CONTINUED)
CAPITAL IMPROVEMENTS REVENUE REFUNDING BONDS, SERIES 2011B
On August 1, 2011 the Village issued $7,130,000 of Capital Improvement Revenue
Refunding Bonds, Series 2011B for the purpose of refunding the Village’s Capital
Improvement Revenue Bonds, Series 2002. The bonds mature on November 1, 2022. The
Village has pledged non-ad valorem revenues to secure payment of the principal and
interest on the bonds. The bonds bear interest on the outstanding principal balance from its
date of issuance payable quarterly on the first day of each February, May, August and
November commencing November 1, 2011, at an interest rate equal to 2.41% per annum.
Debt service to maturity is as follows:
Principal Interest Total
Fiscal Year Ending September 30
2014 595,000$ 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 650,000 80,102 730,102
2019-2023 2,920,000 160,807 3,080,807
6,010,000$ 711,221$ 6,721,221$
CAPITAL IMPROVEMENT AND LAND ACQUISITION REVENUE REFUNDING BONDS, SERIES
2011
On August 1, 2011 the Village issued the $1,865,000 Capital Improvement and Land
Acquisition Revenue Refunding Bonds, Series 2011 for the purpose of refunding the
Capital Improvement and Land Acquisition Revenue Bonds, Series 2004. The Village has
pledged non-ad valorem revenues to secure payment of the principal and interest on the
bonds. The bonds mature on November 1, 2022. The bonds bear interest on the
outstanding principal balance from its date of issuance payable quarterly on the first day of
each February, May, August and November, commencing November I, 2011, at an interest
rate equal to 2.41% per annum.
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013
42
NOTE 8 – LONG-TERM DEBT (CONTINUED)
CAPITAL IMPROVEMENT AND LAND ACQUISITION REVENUE REFUNDING BONDS, SERIES
2011 (CONTINUED)
Debt service requirements to maturity are as follows:
Principal Interest Total
Fiscal Year Ending September 30
2014 155,000$ 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 170,000 21,057 191,057
2019-2023 770,000 42,326 812,326
1,580,000$ 186,835$ 1,766,835$
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 $438,620 and $206,361, respectively. The bonds mature on July 1, 2025.
The bonds bear interest on the outstanding principal balance from its date of issuance
payable quarterly on each January 1, April 1, July 1 and October 1 commencing January 1,
2012, at an interest rate equal to 2.42% per annum.
Debt service requirements to maturity are as follows:
Principal Interest Total
Fiscal Year Ending September 30
2014 182,999 57,786 240,785$
2015 187,468 53,317 240,785
2016 192,046 48,739 240,785
2017 196,736 44,049 240,785
2018 201,540 39,245 240,785
2019-2023 1,083,976 119,949 1,203,925
2024-2025 411,359 10,015 421,374
2,456,125$ 373,099$ 2,829,224$
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013
43
NOTE 8 – LONG-TERM DEBT (CONTINUED)
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
$2,943,850. For the current year, debt service and pledged revenues were $355,733 and
$365,000, respectively. The bonds are due in quarterly principal installments. Interest
accrues at 4.05% per annum.
Debt service requirements to maturity are as follows:
Principal Interest Total
Fiscal Year Ending September 30
2014 258,185 96,918 355,103$
2015 268,137 86,312 354,448
2016 278,472 75,297 353,768
2017 289,205 63,857 353,062
2018 300,353 51,976 352,329
2019-2022 1,093,557 81,582 1,175,139
2,487,909$ 455,941$ 2,943,850$
SCHOOL IMPROVEMENT REVENUE BONDS, SERIES 2012
On October 24, 2012, the Village issued $5,757,000 of School Improvement Revenue
Bonds, Series 2012 for the purpose of providing a portion of the financing of a permanent
secondary educational facility and recreational fields owned and operated by the School
Board of Miami-Dade County for Village residents located at the Mast Academy campus
as well as necessary renovations of the Key Biscayne K-8 Center, financing architectural,
engineering, environmental legal, and other planning costs related thereto, and paying cost
of issuance of the bonds. The bonds mature on October 1, 2032. The bonds bear interest
on the outstanding principal balance from its date of issuance payable semiannually on
each April 1 and October 1 (the "interest payment dates") commencing April 1, 2013, at an
interest rate equal to 3.35% per annum. The bonds require the Village to appropriate in its
annual budget, from non-ad valorem revenues amounts sufficient to cover debt service.
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013
44
NOTE 8 – LONG-TERM DEBT (CONTINUED)
SCHOOL IMPROVEMENT REVENUE BONDS, SERIES 2012 (CONTINUED)
Debt service requirements to maturity are as follows:
Principal Interest Total
Fiscal Year Ending September 30
2014 --$ 62,148$ 62,148$
2015 -- 57,786 57,786
2016 267,942 53,317 321,259
2017 272,430 48,739 321,169
2018 276,993 44,049 321,042
2019-2023 1,456,133 145,789 1,601,922
2024-2028 1,582,238 145,789 1,728,027
2029-2032 1,719,264 23,419 1,742,683
5,575,000$ 581,036$ 6,156,036$
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 (423,457)
Carrying Value 183,814$
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013
45
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, 2013 are as follows:
Fiscal Year Ending September 30
2014 209,004$
2015 126,180
2016 126,159
2017 126,180
Total minimum lease payments 587,523
Less: amount representing interest 19,593
567,930$
The following is a summary of changes in long-term liabilities of the Village for business-
type activities for the year ended September 30, 2013:
Beginning Ending Due Within
Balance Additions Reductions Balance One Year
Business-type Activities
Bonds and Loans Payable
Stormwater utility revenue
refunding bond, Series 2011 3,655,000$ --$ (485,000)$ 3,170,000$ 500,000$
Revolving loan, 1996 258,647 -- (21,677) 236,970 22,236
Revolving loan, 2009 3,996,059 -- (84,085) 3,911,974 180,000
Total Bonds and Loans Payable 7,909,706 -- (590,762) 7,318,944 702,236
Business-type Activities
Long-Term Liabilities 7,909,706$ --$ (590,762)$ 7,318,944$ 702,236$
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
$958,114 and debt service was $572,355 for the year ended September 30, 2013. The
bonds mature on October 1, 2019. The Bonds bear interest on the outstanding principal
balance from their date of issuance payable semiannually on each April 1 and October 1
commencing October 1, 2011, at an interest rate equal to 2.39% per annum.
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013
46
NOTE 8 – LONG-TERM DEBT (CONTINUED)
STORMWATER UTILITY REVENUE REFUNDING BONDS, SERIES 2011 (CONTINUED)
Debt service requirements to maturity are as follows:
Principal Interest Total
Fiscal Year Ending September 30
2014 500,000$ 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 545,000 26,410 571,410
Thereafter 560,000 13,384 573,384
3,170,000$ 270,190$ 3,440,190$
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 2013 was $28,134 and state revenue sharing
was $246,951. The loan is payable in semi-annual payments over 20 years beginning on
April 15, 2003 at an interest rate of 2.56% per annum. The loan matures on October 15,
2022.
Debt service requirements to maturity are as follows:
Principal Interest Total
Fiscal Year Ending September 30
2014 22,236 5,898 28,134$
2015 22,809 5,325 28,134
2016 23,396 4,738 28,134
2017 23,999 4,135 28,134
2018 24,617 3,517 28,134
2019-2023 119,912 7,737 127,649
236,970$ 31,350$ 268,320$
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013
47
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, 2013 is $3,911,974. 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 2013 was $219,552 and the pledged revenue was $1,010,931.
The loan is payable in semi-annual payments over 20 years beginning on August 15, 2010
and is payable each August 15 and February 15 at an interest rate of 3.39% per annum.
The loan matures on February 15, 2030.
Debt service requirements to maturity are as follows:
Principal Interest Total
Fiscal Year Ending September 30
2014 180,400 131,100 311,500$
2015 186,567 129,571 316,138
2016 192,945 118,554 311,500
2017 199,542 111,958 311,500
2018 206,363 105,136 311,500
2019-2023 1,142,591 414,907 1,557,498
2024-2028 1,351,720 205,778 1,557,498
2029-2030 451,846 15,403 467,249
3,911,974$ 1,232,407$ 5,144,381$
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, 2013
48
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 $278,254 which is
being funded from the General Fund and from revenues derived from an interlocal
agreement with Miami-Dade County over a period of approximately 11 years.
NOTE 11–FUND BALANCE CLASSIFICATIONS
As of September 30, 2013, fund balances in the general fund and the capital improvements
fund have been set aside for the following purposes. The Village, by its charter, cannot
have any unassigned fund balance, therefore, many of the commitments/assignments are
established to fund current operations, such as working capital.
Nonspendable
Prepaids 272,330$
272,330
Restricted
Building inspections 958,623
Fire code violations 199,368
Fire grant revenue (UASI) 132,685
Law enforcement seizures 176,028
1,466,704
Committed
Emergencies 4,000,000
Fire rescue transport fees 975,439
Labor negotiations 90,000
5,065,439
Assigned
Compensated absences 654,875
Working capital (surplus) 10,197,765
10,852,640
Total Fund Balance - General Fund 16,190,409$
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013
49
NOTE 11–FUND BALANCE CLASSIFICATIONS (CONTINUED)
Committed
Capital Improvement Plan 4,240,030$
KB School Improvements 75
4,240,105
Restricted
Community Center Expansion 1,500,000
Police Vehicle Loan 171,740
1,671,740
Total Fund Balance - Capital Improvements 5,911,845$
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, who 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, 2013 were
$563,864 while the employee contributions were $182,167. Amendments to the Plan must
be authorized by the Village Council.
NOTE 13 – DEFINED BENEFIT PENSION PLAN
PLAN DESCRIPTION
Effective October 1, 1997, the Village established the Village of Key Biscayne Police
Officers and Firefighters Retirement Plan ( 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.
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013
50
NOTE 13 – DEFINED BENEFIT PENSION PLAN (CONTINUED)
PLAN DESCRIPTION (CONTINUED)
Under this plan, all full-time police officers and firefighters employed by the Village are
eligible to participate. The monthly retirement benefit is equal to 3% 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.
Based on the revised 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 15
Current Employees
Vested 57
Non-vested 6
Total 63
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, 2013 which was determined by the October 1,
2011 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.
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013
51
NOTE 13 – DEFINED BENEFIT PENSION PLAN (CONTINUED)
REVISION IN ACTUARIAL ASSUMPTIONS OR METHODS
The revised actuarial valuation report as of October 1, 2012 (date of the latest valuation)
reflects the following changes in assumptions since the prior actuarial valuation:
The assumed investment rate of return is lowered from 8.0% to 7.95% (net of
investment expenses). This rate is being lowered by 5 basis points (0.05%) per year
until it reaches the target rate of 7.50% after ten years.
The mortality table is updated from the 1983 (Group Annuity Mortality Table to the
RP 2000 Combined Healthy Participant Mortality Table with a provision for
projecting future mortality improvements after the year 2000 using Scale BB. This
assumption change is being phased in over a ten-year period beginning October 1,
2012 so one-tenth of this mortality table change is recognized as of October 1, 2012.
These assumption changes resulted in an increase in the required employer contribution of
0.60% of covered payroll. If the assumption changes had been fully recognized this year
(including changing the assumed investment rate of return to 7.50%), the required employer
contribution would have increased by 5.82% of covered payroll, and the funded ratio would
have been 65.9%.
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$ 26,147,006$ 7,035,237$ 73.1% 6,782,023$ 103.7%
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, 2013
52
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) 18.28%
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* 7.95% 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 1,169,635$
Interest on Net Pension Obligation (Asset) (12,146)
Adjustment to Annual Required Contribution 21,732
Annual Pension Cost 1,179,221
Contributions Made 1,225,585
Increase in Net Pension Asset (46,364)
Net Pension Asset - Beginning of Year (152,781)
Net Pension Asset - End of Year (199,145)$
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013
53
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)
9/30/2011 1,009,020$ 103.2% $ (161,269)
9/30/2012 1,032,592 99.2%(152,781)
9/30/2013 1,179,221 104.8%(199,145)
Trend Information
SHARE PLAN
In fiscal year 2009, the Village created a Share Plan for firefighters. The Plan 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. During fiscal year
2013, the Village transferred $70,660 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 investment balance
of the Share Plan at September 30, 2013 is $980,459, which is accounted for in the pension
trust fund.
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 from the DROP 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, 2013, there were
three (3) participants in the Plan. The balance in the Plan at September 30, 2013 is
$221,931, which is accounted for in the pension trust fund.
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013
54
NOTE 14 – OTHER POST-EMPLOYMENT BENEFITS
PLAN DESCRIPTION
The Village provides an optional single employer defined benefit post-employment
healthcare plan to eligible individuals. The plan allows its employees and their
beneficiaries, at their own cost, to continue to obtain health, dental and other insurance
benefits upon retirement. The benefits of the plan conform to Florida Statutes, which are
the legal authority for the plan. The plan has no assets and does not issue a separate
financial report.
FUNDING POLICY AND ANNUAL OPEB COST
The Village does not directly make a contribution to the plan on behalf of retirees.
Retirees and their beneficiaries pay the same group rates as are charged to the Village for
active employees by its healthcare provider. However, the Village’s actuaries, in their
actuarial valuation, calculate an offset to the cost of these benefits as an Employer
Contribution, based upon an implicit rate subsidy. This offset equals the total age-
adjusted costs paid by the Village or its active employees for coverage of the retirees and
their dependents for the year net of the retiree’s own payments for the year. The annual
other post-employment benefit (OPEB) cost is calculated based on the annual required
contribution of the employer, an amount actuarially determined in accordance with
GASB pronouncements. The annual required contribution represents a level of funding
that, if paid on an ongoing basis, is projected to cover normal cost each year and to
amortize any unfunded actuarial liabilities over a period not to exceed thirty years.
The annual OPEB cost for the Village for the current year and the related information is
as follows:
Required Contribution Rates
Employer Pay-as-you-go
Plan members N/A
Normal Cost 160,322$
Interest on Normal Cost --
Amortization of Unfunded Actuarial Accrued Liability 22,305
Annual Required Contribution 182,627
Interest of Net OPEB Obligation 12,961
Adjustment to ARC (13,716)
Annual OPEB Cost 181,872
Contributions Made (4,468)
Increase in Net OPEB Obligation 177,404
Net OPEB Obligation, Beginning of Year 370,319
Net OPEB Obligation, End of Year 547,723$
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013
55
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 9/30/2013 9/30/2012 9/30/2011
Annual OPEB Cost 181,872$ 148,729$ 134,038$
Percentage of OPEB Cost Contributed 2% 13% 10%
Net OPEB Obligation 547,723$ 370,319$ 240,880$
FUNDED STATUS AND FUNDING PROGRESS
The funded status of the plan as of October 1, 2012, the date of the latest actuarial
valuation is 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
--$ 591,969$ 591,969$ 0.0% 8,172,962$ 7.24%
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, 2013
56
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, 2012
Actuarial cost method Entry Age, Normal Cost Method
Amortization method Level % of Payroll, Closed (remaining amortization 27
years)
Actuarial assumptions:
Investment rate of return* 3.50% compounded annually
Projected salary increases* 4.00% - 9.40%
Payroll growth assumptions 4.0 %
*Includes inflation at 3% per year
Healthcare cost trend rate(s):
Insurance Premiums
Select Rates 30.00% for 2013 and 5.00% to 8.00% for years
thereafter
Ultimate rate 5.41%**
**Includes an additional 0.41% trend representing our estimate of the ultimate effect of
the Federal Excise Tax.
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, 2013
57
NOTE 16 – PRIOR PERIOD ADJUSTMENT – PENSION TRUST FUND
Management analyzed the Plan’s Ordinances and determined that the investments held by
the Share and DROP plans should be included in the Pension Trust Fund. The beginning
net position restricted for pension benefits has been restated by $976,883 to include the
investments and the activity held in the Share Plan and DROP Plan as of October 1, 2012.
The Board of Trustees of the Village of Key Biscayne Police Officers and Firefighters
Retirement Plan, serves as the administrative board, which holds title to, supervises,
administers and manages the assets of the plans.
NOTE 17 – SUBSEQUENT EVENT
On January 7, 2014, the Village issued the Stormwater Utility Refunding and Improvement
Revenue Bonds, Series 2013 in the amount of $6,575,000 for the purpose of refunding the
Village’s $4,450,000 Stormwater Utility Revenue Refunding Bonds, Series 2011, financing
improvements and replacements of drainage wells and outfalls for the Village’s Stormwater
Utility System and paying costs of issuance of the Bonds. The bonds bear interest on the
outstanding principal balance from its date of issuance payable semiannually on each
April 1 and October 1, commencing April 1, 2014, at an interest rate equal to 3.35% per
annum. The Bonds mature on October 1, 2030 and are secured primarily by a pledge of the
Stormwater Utility fees as defined by Section 403.0893(3), Florida Statues and imposed
pursuant to Ordinance No. 93-11 adopted by the Council on June 22, 1993.
REQUIRED SUPPLEMENTARY INFORMATION
Adjusted Variance
Actual Amounts with Final
Amounts Prior Year on a Budget -
on a GAAP Reserves/ Budgetary Positive
Original Final Basis Adjustments Basis (Negative)
Revenues
Property taxes 17,567,042$ 17,567,042$ 17,499,835$ --$ 17,499,835$ (67,207)$
Utility taxes/communications
services tax 2,702,576 2,702,576 2,800,840 -- 2,800,840 98,264
Franchise fees 850,000 850,000 780,245 -- 780,245 (69,755)
Licenses and permits 1,371,000 1,371,000 2,542,103 -- 2,542,103 1,171,103
Intergovernmental 1,107,153 1,107,153 1,565,847 (309,688) 1,256,159 149,006
Charges for services 2,723,508 2,723,508 3,155,373 -- 3,155,373 431,865
Interest 10,000 10,000 16,070 -- 16,070 6,070
Grants -- -- 426,917 (426,917) -- --
Miscellaneous income 47,000 47,000 127,479 -- 127,479 80,479
Total Revenues 26,378,279 26,378,279 28,914,709 (736,605) 28,178,104 1,799,825
Expenditures
Current:
General government:
Elected officials 292,535 292,535 258,428 -- 258,428 34,107
Village Clerk 357,655 357,655 316,943 -- 316,943 40,712
Administration 1,155,703 1,155,703 1,258,027 (23,229) 1,234,798 (79,095)
Village Attorney 515,000 515,000 432,523 -- 432,523 82,477
Total general government 2,320,893 2,320,893 2,265,921 (23,229) 2,242,692 78,201
Public safety:
Police 5,784,482 5,784,482 5,775,343 -- 5,775,343 9,139
Fire 6,779,224 6,779,224 7,024,934 (367,040) 6,657,894 121,330
Total public safety 12,563,706 12,563,706 12,800,277 (367,040) 12,433,237 130,469
Public works 1,882,387 1,882,387 1,834,592 -- 1,834,592 47,795
Building, zoning and planning 1,803,798 1,803,798 1,842,175 (38,377) 1,803,798 --
Parks and recreation:
Parks 1,097,118 1,097,118 1,131,306 -- 1,131,306 (34,188)
Community center 2,087,374 2,087,374 2,337,123 (249,749) 2,087,374 --
Athletic division 626,136 626,136 648,866 -- 648,866 (22,730)
Total parks and recreation 3,810,628 3,810,628 4,117,295 (249,749) 3,867,546 (56,918)
Debt service:
Principal 1,951,678 1,951,678 2,094,829 -- 2,094,829 (143,151)
Interest and fiscal charges 798,104 798,104 669,174 -- 669,174 128,930
Total Expenditures 25,131,194 25,131,194 25,624,263 (678,395) 24,945,868 185,326
Excess (Deficiency) of
Revenues over Expenditures 1,247,085 1,247,085 3,290,446 58,210 3,232,236 1,985,151
Other Financing Sources (Uses)
Appropriation of prior years':
Reserves - working capital (1,247,085) (1,247,085) -- 330,330 -- 1,247,085
Reserves - building division -- -- -- 38,377 -- --
Reserves - law enforcement -- -- -- -- -- --
Transfers out -- -- (28,134) -- (28,134) (28,134)
Total Other Financing Sources (Uses)(1,247,085) (1,247,085) (28,134) 368,707 (28,134) (1,218,951)
Net Change in Fund Balances --$ --$ 3,262,312$ 426,917$ 3,204,102$ (3,204,102)$
Budgeted Amounts
VILLAGE OF KEY BISCAYNE, FLORIDA
BUDGETARY COMPARISON SCHEDULE
GENERAL FUND
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013
REQUIRED SUPPLEMENTARY INFORMATION
See note to budgetary comparison schedule.
58
VILLAGE OF KEY BISCAYNE, FLORIDA
REQUIRED SUPPLEMENTARY INFORMATION
NOTES TO BUDGETARY COMPARISON SCHEDULE
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013
59
NOTE 1 – BUDGETS AND BUDGETARY ACCOUNTING
An annual appropriated budget is prepared for the general fund. The Village prepares a
budget for its capital projects fund; however, this budget is prepared as a project budget and
not as annually appropriated budget. 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. Public hearings are conducted to obtain taxpayer comments.
(b) Prior to October 1, the budget is legally enacted through passage of an ordinance.
(c) 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, 2013, there were no supplemental appropriations.
(d) Formal budgetary integration is employed as a management control device for the
general fund.
(e) 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.
(f) 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.
(g) There were no budget amendments during fiscal year ended September 30, 2013.
NOTE 2 – RECONCILIATION OF GAAP BASIS TO BUDGETARY BASIS
Revenue Reported on a GAAP Basis 28,914,709$
Defined Benefit Pension plan contributions provided
by the State of Florida, not budgeted by the Village (309,688)
Grants not budgeted (426,917)
Revenues on a Budgetary Basis 28,178,104$
Expenditures Reported on a GAAP Basis 25,624,263$
Defined Benefit Pension plan contributions provided
by the State of Florida, not budgeted by the Village (309,688)
Adjustments for prior year reserves (368,707)
Expenditures on a Budgetary Basis 24,945,868$
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 26,147,006 7,035,237 73.1% 6,782,023 103.7%
VILLAGE OF KEY BISCAYNE, FLORIDA
PENSION TRUST FUND
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF FUNDING PROGRESS
60
Fiscal
Year Annual
Ended Required Percentage
September 30, Contribution Contributed
2008 839,400$ 100%
2009 958,925 100%
2010 968,173 102%
2011 1,002,826 104%
2012 1,024,104 99%
2013 1,169,635 105%
REQUIRED SUPPLEMENTARY INFORMATION
VILLAGE OF KEY BISCAYNE, FLORIDA
PENSION TRUST FUND
SCHEDULE OF EMPLOYER CONTRIBUTIONS
61
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
10/1/2008* --$ 352,120$ 352,120$ 0.0% 7,612,399$ 4.63%
10/1/2012 -- 591,969 591,969 0.0% 8,172,962 7.24%
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.
62
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:
63-67
Revenue Capacity
These schedules contain information to help the reader assess the Village's most
significant local revenue source, the property tax.
68-72
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.
73-76
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
place.
77-79
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.
80-81
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.
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Governmental activities
Net investment in capital assets 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$ 41,533,189$
Restricted 283,180 326,826 359,899 261,813 284,639 308,813 -- 1,170,247 500,137 3,138,445
Unrestricted 2,809,659 4,302,680 4,926,634 8,453,390 10,924,001 15,055,000 16,540,883 16,491,371 19,598,291 19,788,249
Total governmental activities net assets 29,242,553 30,914,106 33,962,799 40,137,561 47,348,593 53,846,056 57,918,001 61,090,051 64,471,657 64,459,883
Business-type activities
Net investment in capital assets 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 15,884,955
Restricted -- -- -- -- -- -- -- -- -- --
Unrestricted 1,254,664 1,281,141 778,320 432,133 (2,209,685) (346,721) 1,116,111 1,133,034 706,195 439,166
Total business-type activities net assets 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 16,324,121
Total government
Net investment in capital assets 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 57,418,144
Restricted 283,180 326,826 359,899 261,813 284,639 308,813 -- 1,170,247 500,137 3,138,445
Unrestricted 4,064,323 5,583,821 5,704,954 8,885,523 8,714,316 14,708,279 17,656,994 17,624,405 20,304,486 20,227,415
Total Government Net Position 32,265,295$ 34,127,091$ 37,067,208$ 43,075,575$ 55,313,241$ 68,883,100$ 75,714,823$ 79,193,555$ 81,640,122$ 80,784,004$
Note: The Village implemented GASB Statement No. 63 for FY 2013 and revised terminology for all years presented.
Fiscal Year
VILLAGE OF KEY BISCAYNE, FLORIDA
NET POSITION BY COMPONENT
LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
63
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Expenses
Governmental activities:
General government 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$ 8,706,188$
Fire 4,738,402 4,867,525 4,947,149 5,257,789 6,399,665 6,523,753 6,762,228 5,685,278 7,299,320 7,024,661
Police 4,311,449 4,373,145 4,275,617 4,651,660 5,272,383 5,258,243 5,360,548 6,853,329 5,818,890 6,065,025
Building, zoning and planning 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 2,306,446
Public works 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 2,221,905
Parks and recreation 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 4,175,408
Interest on long-term debt 1,487,245 1,305,383 1,413,272 1,505,253 1,436,481 1,447,387 1,366,437 1,217,874 843,965 935,242
Total governmental activities 17,489,593 19,500,420 23,289,202 21,311,134 23,531,083 23,643,292 23,601,302 24,252,869 25,089,084 31,434,875
Business-type activities:
Stormwater system 971,081 454,963 720,158 693,135 911,500 779,856 603,262 815,402 689,287 715,836
Solid waste collection 259,173 466,162 501,417 571,246 619,823 618,155 585,927 546,534 563,995 574,686
Sanitary sewer 15,732 10,261 9,993 9,454 9,046 144,922 39,178 197,474 1,234,279 1,133,209
Total business-type activities 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 2,423,731
Total government expenses 18,735,579$ 20,431,806$ 24,520,770$ 22,584,969$ 25,071,452$ 25,186,225$ 24,829,669$ 25,812,279$ 27,576,645$ 33,858,606$
Program revenues
Governmental activities:
Charges for services:
General government 961,100$ 1,257,895$ 1,466,186$ 1,389,163$ 1,320,004$ 237,315$ 181,992$ 169,307$ 177,574$ 140,587$
Police 197,244 212,121 40,719 21,385 14,203 38,181 (1,479) 1,763 375 1,455
Fire 6,505 7,120 50,392 40,144 146,588 136,433 158,975 190,989 145,544 188,169
Parks and recreation 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 2,622,554
Building, zoning and planning 86,455 142,550 167,802 193,391 133,104 1,173,440 1,247,715 2,184,127 2,347,092 2,744,711
Operating grants and contributions -- 650,679 3,559,753 799,493 251,180 157,912 163,752 77,638 6,629 426,917
Capital grants and contributions 524,736 517,643 -- -- -- 1,709,481 959,360 730,492 783,886 803,620
Total governmental activities
program revenues 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 6,928,013
Business-type activities:
Charges for services:
Stormwater system 520,729 518,812 517,365 509,571 499,101 491,314 484,932 979,865 935,352 958,114
Solid waste collection 284,900 533,632 531,967 520,650 530,803 635,580 615,480 597,431 588,449 592,480
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 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 1,550,594
Total program revenues 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$ 8,478,607$
(Continued)
VILLAGE OF KEY BISCAYNE, FLORIDA
CHANGES IN NET POSITION
LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
Fiscal Year
Note: The Village implemented GASB Statement No. 63 for FY 2013 and revised terminology for all years presented.64
2004 2005 2006 2007 2008 2009 2010 2011 2013
Net (expense) revenue
Governmental activities (15,677,766)$ (15,424,606)$ (16,491,427)$ (17,450,851)$ (20,045,217)$ (18,232,783)$ (18,783,590)$ (18,610,570)$ (19,013,950)$ (24,506,862)$
Business-type activities (440,357) 121,058 (182,236) (243,614) 4,950,298 6,886,591 2,545,496 276,386 (963,760) (873,137)
Total net expense (16,118,123)$ (15,303,548)$ (16,673,663)$ (17,694,465)$ (15,094,919)$ (11,346,192)$ (16,238,094)$ (18,334,184)$ (19,977,710)$ (25,379,999)$
General revenues
Governmental activities:
Taxes:
Property taxes 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$ 17,499,835$
Utility taxes 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 1,789,909
Franchise fees 677,203 705,810 1,088,929 1,113,194 1,064,666 992,997 1,006,415 735,519 846,252 780,245
Communications services tax -- 746,400 797,054 763,801 1,226,423 1,091,734 1,029,087 964,324 946,399 1,010,931
Intergovernmental 821,883 978,304 996,092 1,000,265 2,265,243 1,348,324 1,391,242 1,575,314 1,667,597 1,772,208
Investment earnings 110,562 255,611 306,339 641,115 346,531 44,737 21,346 37,254 37,985 16,722
Miscellaneous 126,607 281,657 -- -- -- 91,232 131,847 147,065 212,697 1,627,479
Transfers (28,134) (28,135) (28,133) (28,133) (28,134) (164,502) (212,308) (28,134) (28,134) (28,134)
Total governmental activities 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 24,469,195
Business-type activities:
Investment earnings 21,235 41,050 45,527 49,086 48,202 21,303 1,974 2,162 587 659
Transfers 28,134 28,135 28,133 28,133 28,134 164,502 212,308 28,134 28,134 28,134
Total business-type activities 49,369 69,185 73,660 77,219 76,336 185,805 214,282 30,296 28,721 28,793
Total general revenues 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$ 24,497,988$
Change in Net Position
Governmental activities 1,020,184$ 2,363,294$ 3,048,693$ 6,174,762$ 6,415,130$ 6,497,463$ 4,071,945$ 3,172,050$ 3,381,606$ (37,667)$
Business-type activities (390,988) 190,243 (108,576) (166,395) 5,026,634 7,072,396 2,759,778 306,682 (935,039) (844,344)
Total change in Net Position 629,196$ 2,553,537$ 2,940,117$ 6,008,367$ 11,441,764$ 13,569,859$ 6,831,723$ 3,478,732$ 2,446,567$ (882,011)$
Note: The Village implemented GASB Statement No. 63 for FY 2013 and revised terminology for all years presented.
VILLAGE OF KEY BISCAYNE, FLORIDA
CHANGES IN NET POSITION
(Continued)
LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
Fiscal Year
65
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
General fund
Non-spendable --$ --$ --$ --$ --$ --$ --$ 305,730$ 303,918$ 272,330$
Restricted -- -- -- -- -- -- -- 1,170,247 1,054,070 1,466,704
Committed -- -- -- -- -- -- -- 12,039,224 4,858,269 5,065,439
Assigned -- -- -- -- -- -- -- 4,028,870 8,178,544 10,852,640
Reserved 4,677,188 5,754,277 6,874,310 9,875,416 11,298,178 12,318,533 15,286,689 -- -- --
Unreserved 275,000 -- -- -- -- -- -- -- -- --
Total General Fund 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 17,657,113
All other governmental funds
Restricted -- -- -- -- -- -- -- -- 573,701 1,671,741
Committed -- -- -- -- -- -- -- 3,665,259 6,060,286 4,240,104
Unassigned -- -- -- -- -- -- -- (1,077,816) (690,343) (278,254)
Unreserved, reported in:
Special revenue fund 513,862 (638,221) (1,496,749) (2,482,196) (2,701,623) (1,501,382) (1,299,432) -- -- --
Capital projects funds (489,979) 881,595 1,421,014 2,954,753 4,783,222 6,875,361 5,195,557 -- -- --
Total Other Governmental Funds 23,883 243,374 (75,735) 472,557 2,081,599 5,373,979 3,896,125 2,587,443 5,943,644 5,633,591
Total Governmental Funds 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$ 23,290,704$
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)
66
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Revenues
Ad valorem taxes 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$ 17,499,835$
Franchise fees 677,203 1,452,210 1,885,983 1,113,194 1,064,666 992,997 1,006,415 735,519 846,252 780,245
Utility taxes/communication services tax 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 2,800,840
Licenses and permits 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 2,542,103
Intergovernmental revenue 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 2,575,828
Charges for services 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 3,155,373
Grants -- 650,679 2,799,762 206,040 251,180 167,873 425,339 77,638 6,629 426,917
Investment income 110,562 255,611 306,339 632,355 338,528 44,737 21,346 37,254 37,985 16,722
Miscellaneous 441,761 281,657 -- 8,762 8,003 26,232 131,848 147,065 212,697 1,627,479
Total revenues 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 31,425,342
Expenditures
Current:
General government 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 2,255,188
Fire 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 7,014,382
Police 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 5,750,069
Public works 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 1,826,782
Building, planning and zoning 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 1,842,175
Parks and recreation 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 4,092,835
Capital outlay 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 2,294,068
Debt service:
Principal retirement 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 2,531,116
Interest and other fiscal charges 1,135,384 1,300,596 1,413,272 1,556,396 1,444,576 1,450,649 1,386,913 1,520,433 828,393 913,409
Total expenditures 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 28,520,024
Excess (deficiency) of revenues over expenditures (8,397,992) (2,204,756) (2,620,943) (421,078) 2,264,036 4,412,237 1,514,166 655,153 (368,935) 2,905,318
Other financing sources (uses)
Transfers in 819,251 1,245,653 1,731,583 6,697,854 4,533,094 3,236,194 -- -- 5,816,222 --
Transfers out (847,385) (1,273,788) (1,759,716) (6,725,988) (4,561,228) (3,400,696) (212,308) (28,134) (5,844,356) (28,134)
Bonds issued 8,330,462 2,850,000 3,450,000 4,000,000 -- -- -- -- -- 5,575,075
Payment for interlocal agreement -- -- -- -- -- -- -- -- -- (5,500,000)
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 -- -- -- -- 188,444 321,681 604,000 --
Total other financing sources (uses)8,302,328 3,226,336 3,421,867 3,971,866 (28,134) (99,502) (23,864) 293,547 575,866 46,941
Net Change in Fund Balances (95,664)$ 1,021,580$ 800,924$ 3,550,788$ 2,235,902$ 4,312,735$ 1,490,302$ 948,700$ 206,931$ 2,952,259$
Debt service as a percentage
of non-capital expenditures 20% 14% 13% 16% 16% 17% 17% 18% 13% 13%
VILLAGE OF KEY BISCAYNE, FLORIDA
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
Fiscal Year
67
Fiscal Ad Valorem Franchise Utility Inter- Communications
Year Taxes Taxes Taxes governmental Services Tax Total
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
2013 17,499,835 780,245 1,789,909 2,575,828 1,010,931 23,656,748
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.
68
Total
Fiscal Year Total Net Direct
Ended Residential Commercial Personal Assessed Tax
September 30, Property Property Property Value Rate
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 45,993,012 4,287,674,948 3.606
2007 5,421,393,923 166,638,240 45,493,117 5,630,046,023 3.450
2008 6,173,257,097 294,540,559 43,847,470 6,514,112,802 3.200
2009 6,068,439,146 328,171,098 38,117,174 6,434,727,418 3.200
2010 5,593,947,239 302,747,017 39,521,761 5,936,216,017 3.200
2011 5,114,029,641 276,917,774 38,812,865 5,429,760,280 3.200
2012 5,458,639,449 281,666,505 41,574,020 5,522,872,647 3.200
2013 5,445,595,704 294,710,250 38,326,390 5,778,632,344 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
69
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
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
2013 2012 3.200 - 3.200 4.704 0.285 4.989 7.765 0.233 7.998 0.035 0.368 0.734 17.322
(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 $1,000 of assessed value.
Sources: Village of Key Biscayne Finance Department and Miami-Dade County Property Appraiser's Office.
70
Percent of Percent of
Total Total
Net Village Net Net Village Net
Assessed Assessed Assessed Assessed
Taxpayer Value Rank Value Taxpayer Value Rank Value
Consultatio Key Biscayne LLC 63,017,812$ 1 1.09% Sonesta Beach Resort, LP 39,921,710$ 1 1.22%
GB Hotel Partners LTD 54,230,000 2 0.94% GB Hotel Partners LTD 26,929,342 2 0.83%
EDW A McCarthy-Archbishop 23,727,939 3 0.41% Key Biscayne Ocean Club Ltd.17,486,700 3 0.54%
Red Dragon's Sands LTD 19,390,496 4 0.34% Oceanclub Community Assoc 12,500,000 4 0.38%
Galleria of Key Biscayne Inc 19,178,500 5 0.33% Pitu, Inc. 9,657,016 5 0.30%
Edgardo Defortuna 18,607,449 6 0.32% Galleria of Key Biscayne Inc 8,741,107 6 0.27%
Key Biscayne Properties LLC 15,566,781 7 0.27% Claudio Alvarez 8,505,544 7 0.26%
Key Biscayne Presbyterian Church 12,577,746 8 0.22% Red Dragon Sands, LTD 8,470,400 8 0.26%
260 Cape Florida LLC 12,521,952 9 0.22% John Dasburg 6,828,983 9 0.21%
Ocean Club Community Assoc 12,500,000 10 0.22% Yoyot Realty 5,849,394 10 0.18%
251,318,675$ 4.35%144,890,196$ 4.44%
2013 2004
VILLAGE OF KEY BISCAYNE, FLORIDA
PRINCIPAL PROPERTY TAXPAYERS
CURRENT YEAR AND NINE YEARS AGO
71
Total Taxes
Fiscal Year Levied for Collections in
Ended Fiscal Percent Subsequent Percent
September 30, Year Amount of Levy Year's Amount of Levy
2004 13,201,979$ 12,707,056$ 96.25% 63,655$ 12,770,711$ 96.73%
2005 13,974,459 13,213,348 94.55% 146,903 13,360,251 95.60%
2006 15,461,356 14,663,536 94.84% 166,702 14,830,238 95.92%
2007 19,423,659 18,358,012 94.51% 309,967 18,667,979 96.11%
2008 20,845,161 19,739,848 94.70% 311,391 20,051,239 96.19%
2009 20,591,128 19,389,610 94.16% 380,366 19,769,976 96.01%
2010 18,995,891 17,635,675 92.84% 197,199 17,832,874 93.88%
2011 17,375,233 16,305,810 93.85% 340,230 16,646,040 95.80%
2012 17,673,192 16,915,884 95.71% 69,225 16,985,109 96.11%
2013 18,491,624 17,418,348 94.20% 81,487 17,499,835 94.64%
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
72
Fiscal Year General Percent of Debt
Ended Obligation Revenue Loans Revenue Loans Household Per
September 30, Bonds Bonds Payable Bonds Payable Total Income (1) Capita
2004 --$ 29,164,892$ --$ 6,430,000$ --$ 35,594,892$ 0.24% 3,345
2005 -- 30,850,606 -- 6,010,000 -- 36,860,606 0.24% 3,446
2006 -- 33,085,960 -- 5,785,000 -- 38,870,960 0.23% 3,664
2007 -- 31,695,102 -- 5,200,000 -- 36,895,102 0.25% 3,495
2008 -- 33,987,811 5,000,000 5,200,000 339,919 44,527,730 0.22% 4,232
2009 -- 32,040,160 -- 4,835,000 2,387,341 39,262,501 0.25% 3,730
2010 -- 29,950,678 -- 4,450,000 4,695,812 39,096,490 0.26% 3,166
2011 -- 27,757,222 -- 4,130,000 4,497,388 36,384,610 0.29% 2,946
2012 -- 25,543,132 -- 3,655,000 4,254,706 33,452,838 0.33% 2,662
2013 -- 28,759,034 -- 3,170,000 4,148,944 36,077,978 0.31% 2,900
Governmental Activities
VILLAGE OF KEY BISCAYNE, FLORIDA
RATIOS OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
(1) household income amounts are disclosed on page 76 on the demographic schedule
Business-Type
Activities
73
VILLAGE OF KEY BISCAYNE, FLORIDA
RATIOS OF GENERAL BONDED DEBT OUTSTANDING
LAST TEN FISCAL YEARS
The Village does not have general obligation debt.
74
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 28,759,034$ 100.00% 28,759,034$
Overlapping debt:
Miami-Dade County 1,345,898 1.65% 22,144
Miami-Dade County School Board 123,345 1.35% 1,659
Subtotal, Overlapping Debt 23,803
Total Direct and Overlapping Debt 28,782,837$
(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.
2013
VILLAGE OF KEY BISCAYNE, FLORIDA
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
SEPTEMBER 30, 2013
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.
75
Fiscal Year Non-
Ended Ad Valorem
September 30, Revenues Principal Interest Coverage
2004 5,767,200$ 1,583,924$ 1,135,384$ 2.12
2005 8,531,598 1,161,298 1,300,596 3.47
2006 11,535,790 1,214,646 1,413,272 4.39
2007 8,846,052 1,418,401 1,556,396 2.97
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 2.86
2011 10,854,660 2,348,506 1,520,433 2.81
2012 11,549,163 2,436,139 828,393 3.54
2013 13,925,507 2,531,116 913,409 4.04
VILLAGE OF KEY BISCAYNE, FLORIDA
PLEDGED REVENUE COVERAGE
LAST TEN FISCAL YEARS
Debt Service
Source: Village of Key Biscayne Finance Department.
76
Median Per Capita
Household Personal Unemployment
Year Population (1) Income (1) Income (1) Rate (2)
2004 10,507 85,698$ 35,175$ 5.2%
2005 10,507 88,349 36,262 4.1%
2006 10,507 91,081 37,384 4.5%
2007 10,507 93,898 38,540 4.2%
2008 10,507 96,802 39,732 4.2%
2009 10,507 99,796 40,961 11.6%
2010 12,344 102,790 42,190 13.2%
2011 12,344 105,874 43,456 9.4%
2012 12,344 109,050 44,759 8.5%
2013 12,344 112,321 46,102 6.8%
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
77
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
Winn Dixie Stores, Inc. 250 2 not known
Village of Key Biscayne 124 3 not known
Total 1,874
All remaining employers are of an extremely small number
Source: Village of Key Biscayne Finance Department.
2004 information not available.
Notes: (1) All amounts are estimated for timely inclusion in report. Requests for information received no response.
VILLAGE OF KEY BISCAYNE, FLORIDA
PRINCIPAL EMPLOYERS
2013 2004
CURRENT YEAR AND NINE YEARS AGO
78
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Number of Employees
General government 6 7 6 6 6 8 7 7 7 7
Public safety 76 79 79 79 78 81 80 80 81 84
Building, planning and zoning 12 13 13 14 13 13 13 13 15 17
Public works 5 5 5 4 4 4 4 4 4 4
Parks and recreation 4 6 6 7 7 10 10 10 10 12
Total Number of Employees 103 110 109 110 108 116 114 114 117 124
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
79
Function/Program 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Public safety:
Police:
Police personnel and officers 41 40 40 40 39 42 41 41 42 44
Police calls for service 19,004 16,510 13,006 35,412 36,190 37,002 34,935 37,646 31,214 26,836
Parking violations 628 682 801 996 776 824 523 563 638 676
Traffic violations 3,035 1,397 1,468 1,104 946 975 1,425 1,269 1,542 1,875
Fire:
Fire personnel 35 39 39 39 39 39 39 39 39 40
Fire incidents 1,148 1,403 1,103 998 1,006 1,012 1,556 1,841 1,369 1,410
Fire inspections performed 307 332 269 220 305 229 267 469 323 469
Planning and development:
Business permits issued 3,061 3,045 3,000 3,504 3,620 3,650 4,371 3,723 3,402 3,885
Business tax receipts issued 428 433 475 914 1,224 1,324 1,142 1,166 1,228 1,304
Culture and recreation:
Number of building users -- 6,373 6,461 5,778 4,673 4,268 3,990 4,127 4,338 4,468.14
Solid waste:
Residential accounts 1,200 1,200 1,200 1,200 1,299 1,298 1,302 1,292 1,264 1,254
Sources: Various Village Departments.
LAST TEN FISCAL YEARS
OPERATING INDICATORS BY FUNCTION/PROGRAM
VILLAGE OF KEY BISCAYNE, FLORIDA
80
Function/Program 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
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 1
Swimming pools -- 1 1 1 1 1 1 1 1 1
Sources: Various Village Departments.
VILLAGE OF KEY BISCAYNE, FLORIDA
CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
81
REPORTING SECTION
Marcum LLP n One Southeast Third Avenue n 16th Floor n Miami, Florida 33131 n Phone 305.995.9600 n Fax 305.995.9601 n www.marcumllp.com
82
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, in accordance with the 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, 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, 2013, and the related notes to the financial
statements, which collectively comprise the Village’s basic financial statements, and have issued
our report thereon dated March 28, 2014.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the Village's
internal control over financial reporting (internal control) to determine the audit procedures that
are appropriate in the circumstances for the purpose of expressing our opinions on the financial
statements, but not for the purpose of expressing an opinion on the effectiveness of the Village’s
internal control. Accordingly, we do not express an opinion on the effectiveness of the Village’s
internal control.
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 a combination of deficiencies, in internal control such that there is a reasonable
possibility that a material misstatement of the Village’s financial statements will not be
prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency,
or a combination of deficiencies, in internal control that is less severe than a material weakness,
yet important enough to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph
of this section and was not designed to identify all deficiencies in internal control that might be
material weaknesses or significant deficiencies. Given these limitations, during our audit we did
not identify any deficiencies in internal control that we consider to be material weaknesses.
However, material weaknesses may exist that have not been identified.
83
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Village's financial statements are
free from 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.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and
compliance and the result of that testing, and not to provide an opinion on the effectiveness of
the Village’s internal control or on compliance. This report is an integral part of an audit
performed in accordance with Government Auditing Standards in considering the Village’s
internal control and compliance. Accordingly, this communication is not suitable for any other
purpose.
Miami, FL
March 28, 2014
Marcum LLP n One Southeast Third Avenue n 16th Floor n Miami, Florida 33131 n Phone 305.995.9600 n Fax 305.995.9601 n www.marcumllp.com
84
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, as of and for
the year ended September 30, 2013, and have issued our report thereon dated March 28, 2014.
We conducted our audit in accordance with auditing standards generally accepted in the United
States of America; the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States and Chapter 10.550, Rules of
the Florida Auditor General. We have issued our Independent Auditors’ Report on Internal
Control over Financial Reporting and Compliance and Other Matters Based on an Audit of the
Financial Statements Performed in Accordance with Government Auditing Standards.
Disclosures in that report, which is dated March 28, 2014, should be considered in conjunction
with this management letter.
Additionally, our audit was conducted in accordance with Chapter 10.550, Rules of the Auditor
General, which governs the conduct of local governmental entity audits performed in the State of
Florida. This letter includes the following information, which is not included in the
aforementioned auditors’ reports:
Section 10.554(1)(i)1., Rules of the Auditor General, requires that we determine whether or
not corrective actions have been taken to address findings and recommendations made in
the preceding annual financial audit report. There were no recommendations made in the
preceding annual financial audit report.
Section 10.554(1)(i)2., Rules of the Auditor General, requires our audit to include a review
of the provisions of Section 218.415, Florida Statutes, regarding the investment of public
funds. In connection with our audit, we determined that the Village complied with Section
218.415, Florida Statutes.
Section 10.554(1)(i)3., Rules of the Auditor General, requires that we address in the
management letter any recommendations to improve financial management. In connection
with our audit, we did not have any such recommendations, however, we did provide two
comments and recommendations to the Village of Key Biscayne Police Officers and
Firefighters Retirement System Board of Trustees.
85
Section 10.554(1)(i)4., Rules of the Auditor General, requires that we address
noncompliance with provisions of contracts or grant agreements, or abuse, that have
occurred, or are likely to have occurred, that have an effect on the financial statements that
is less than material but which warrants the attention of those charged with governance. In
connection with our audit, we did not have any such findings.
Section 10.554(1)(i)5., 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. As disclosed in Note 1, the Village was established under Chapter 61-2902
Laws of Florida in 1991.
Section 10.554(1)(i)6.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.
Section 10.554(1)(i)6.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, 2013,
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, 2013. In connection with our audit, we determined that these two
reports were in agreement.
Pursuant to Sections 10.554(1)(i)6.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.
Our management letter is intended solely for the information and use of the Legislative Auditing
Committee, members of the Florida Senate and the Florida House of Representatives, the Florida
Auditor General, Federal and other granting agencies, and applicable management, and is not
intended to be and should not be used by anyone other than these specified parties.
Miami, FL
March 28, 2014