HomeMy Public PortalAboutCAFR 2014.pdfVILLAGE OF KEY BISCAYNE, FLORIDA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2014
Prepared by:
THE FINANCE DEPARTMENT
VILLAGE OF KEY BISCAYNE, FLORIDA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2014
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 .................................................................................. 22-62
Required Supplementary Information (Other Than MD&A)
Budgetary Comparison Schedule – General Fund ......................................................................63
Notes to Budgetary Comparison Schedule .................................................................................64
Schedule of Funding Progress – Other Post-Employment Benefits ...........................................65
Schedule of Funding Progress – Pension Trust Fund .................................................................66
Schedule of Changes in the Village’s Net Pension Liability and
Related Ratios – Pension Trust Fund .......................................................................................67
Schedule of Village Contributions – Pension Trust Fund ..........................................................68
Schedule of Investment Returns – Pension Trust Fund ..............................................................69
VILLAGE OF KEY BISCAYNE, FLORIDA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2014
TABLE OF CONTENTS
Statistical Section
Net Position by Component ........................................................................................................70
Changes in Net Position ........................................................................................................ 71-72
Fund Balances of Governmental Funds ......................................................................................73
Changes in Fund Balances of Governmental Funds ...................................................................74
General Governmental Tax Revenues by Source .......................................................................75
Net Assessed Value and Estimated Actual Value of Taxable Property .....................................76
Property Tax Rates – Direct and Overlapping Governments .....................................................77
Principal Property Taxpayers ......................................................................................................78
Property Tax Levies and Collections ..........................................................................................79
Ratios of Outstanding Debt by Type ..........................................................................................80
Ratios of General Bonded Debt Outstanding .............................................................................81
Direct and Overlapping Governmental Activities Debt .............................................................82
Pledged Revenue Coverage ........................................................................................................83
Demographic and Economic Statistics .......................................................................................84
Principal Employers ....................................................................................................................85
Full-Time Equivalent Village Government Employees by Function .........................................86
Operating Indicators by Function/Program ................................................................................87
Capital Asset Statistics by Function/Program ............................................................................88
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 ................... 89-90
Management Letter in Accordance with the Rules of the Auditor General of the
State of Florida ................................................................................................................... 91-92
Independent Accountants’ Report on Compliance Pursuant to Section 218.415
Florida Statutes ........................................................................................................................93
INTRODUCTORY SECTION
V I L L AG E OF KEY BISCAYNE
1 '`dint e Conuci1
Mayra P Lindsay, Mgr/ -
Franklin H. Caplan, 1 ice :\ hn or
Luis E de La Cruz
Theodore Holloway
Michael E. Kelly
Edward London
,lames Taintor
Director
Vivian Parks
Department of Finance and Administrative Services
March 31, 2015
To the Honorable Mayor, Members of the Village
Council and Citizens of the Village of Key Biscayne:
Florida Statutes require that all units of local government publish a complete
set of financial statements presented in conformity with Generally Accepted
Accounting Principles (GAAP) in the United States and audited in
accordance with auditing standards generally accepted in the United States
and in accordance with Government Auditing Standards by a firm of
licensed certified public accountants. Pursuant to that requirement. we
hereby issue the Comprehensive Annual Financial Report (CAFR) of the
Village of Key Biscayne for the fiscal year ended September 30, 2014.
This report consists of management's representation concerning the
finances of the Village of Key Biscayne. Consequently. management
assumes full responsibility for the completeness and reliability of all of the
information presented in this Report. To provide a reasonable basis for
making these representations, management of the Village of Key Biscayne
has established a comprehensive internal framework that is designed both
to protect the Village's assets from loss, theft, or misuse and to compile
sufficient reliable information for the preparation of the Village of Key
Biscayne's financial statements in conformity with GAAP. Because the
cost of internal controls should not outweigh their benefits, the Village of
Key Biscayne's comprehensive framework of internal controls has been
designed to provide reasonable, rather than absolute. assurance that the
financial statements will be free from material misstatement. As
management. we assert that. to the best of our knowledge and belief. this
financial report is complete and reliable in all material respects.
The firm of Marcum LLP, licensed certified public accountants has audited
the Village of Key Biscayne's financial statements. The goal of the
independent audit was to provide reasonable assurance that the basic
financial statements of the Village of Key Biscayne for the fiscal year ended
September 30. 2014 are free of material misstatement.
88 West McIntyre Street • Suite 210 • Key Biscayne, Florida 33149 • (305) 365-8904 • Fax (305) 365-8936
MISSION STATEMENT: -TO PROVIDEA SAFE.QUALrn' C4 )NINII'NON ENVIRONMENT FOR. ALL ISLANDERSTIIRO1'GII RESPONSIBLE GOVERNMENT."
www.kcybiscaync.fi.gov
The independent audit involved examining, on a test basis, evidence supporting the amount and
disclosures in the financial statements; assessing the accounting principles used and significant
estimates made by management; and evaluating the overall financial statement presentation.
The independent auditor concluded., based upon the audit, that there was a reasonable basis for
rendering an unmodified opinion that the Village of Key Biscayne's financial statements for the
fiscal year ended September 30, 2014 are fairly presented in conformity with GAAP. The
independent auditor's report is presented as the first component of the financial section of this
report.
GAAP requires that management provide a narrative introduction, overview, and analysis to
accompany the basic financial statements in the form of Management's Discussion and Analysis
(MD&A). This letter of transmittal is designed to complement MD&A and should be read in
conjunction with it. The Village of Key Biscayne's MD&A can be found immediately following
the independent auditors' report.
Profile of the Government
The Village of Key Biscayne, incorporated in 1991, is located on the southern most barrier island
of the United States, Miami -Dade County, Florida approximately 7.5 miles off the coast of Miami,
Florida. The Village of Key Biscayne occupies a land area of 1.25 square miles situated between
Crandon Park and Bill Baggs State Recreation Area. The Village serves a population of
approximately 12,344. The Village of Key Biscayne receives tax levies on real and personal
property located inside its boundaries.
The Village of Key Biscayne operates under the council-manager form of government.
Policymaking and legislative authority are vested in a governing council consisting of the mayor
and six other council members. The Council is responsible for, among other things, passing
ordinances and resolutions, adopting the annual budget, appointing the Village Manager and
Village Clerk. The Village Manager is responsible for carrying out the policies and ordinances of
the Council, for overseeing the daily operations of the government, and for appointing the heads
of various departments.
The Village of Key Biscayne offers a wide range of services, including, police protection, fire and
emergency medical service, public works maintenance, a full service building, planning and
zoning department, parks and recreation activities, solid waste collection, and a comprehensive
storm water management system. Certain services are provided through the County School
System and the County Library System through Miami -Dade County.
The annual budget serves as a foundation for the Village of Key Biscayne's financial planning and
control. All departments of the Village are required to submit requests for appropriations to the
Village Manager and these requests are the initiation of developing the proposed budget. The
Village Manager then presents this proposed budget to the Council for review. The Council is
required to hold public hearings on the proposed budget and to adopt a final budget no later than
September 30, the close of the Village's fiscal year. The appropriated budget is prepared by fund
and department. No department may legally expend in excess of the amount appropriated for that
ii
department within an individual fund. The Village Manager may make transfers of appropriations
within a department. Transfers of appropriations between departments or funds require the
approval of the Village Council. The Village Council approves supplemental appropriations.
Budget to actual comparisons are provided in this report for the general fund for which an
appropriated annual budget has been adopted. The general fund, budget to actual report, is
presented in the required supplementary information section of this report.
Local Economy
The Village of Key Biscayne enjoys a favorable economic environment and local indicators point
to continued future stability. This exclusive community is comprised of well-educated and
involved citizens who take a genuine interest in the social, business, cultural and governing aspects
of their Village. The Village is comprised of affluent exclusive residential housing stock and
shopping centers. There is no industrial area in the community.
Property values continued to increase during the past year in keeping with nationwide trends. State
economical growth will likely have a favorable impact on many of the Village's intergovernmental
revenues such as sales tax and state revenue sharing. The Village continues to monitor operating
expenses closely while seeking possible new revenue sources.
Long -Term Financial Planning
The Village utilizes a comprehensive living projection five years into the future to assess revenue
trends and expenditure needs to assure a balanced stable financial grogram avoiding millage rate
increases while addressing the various goals and objectives of the community. Additionally, the
Village has modified its 5 -Year Capital Plan by prioritizing needs based on its expected available
resources determined by its 5 -Year financial forecast. This effort is also identifying capital
purchases that will be needed to continue its critical core public safety services, as well as other
departmental needs.
Financial Policies
The Village of Key Biscayne has policies on Debt Limitation, Emergency Reserve Funds and
Designation and Reservation of surplus fund. The allocation of surplus funds between committed
and assigned fund balance is made at the discretion of the Village Council.
Awards and Acknowledgements
The Government Finance Officers Association (GFOA) awarded a Certificate of Achievement for
Excellence in Financial Reporting to the Village of Key Biscayne for its Comprehensive Annual
Financial Report (CAFR) for the fiscal year ended September 30, 2013. This was the twenty
second consecutive year that the Village received this prestigious award. In order to be awarded
a Certificate of Achievement, the government published an easily readable and efficiently
organized CAFR. This report satisfied both GAAP and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe that our current
CAFR continues to meet the Certificate of Achievement Program's requirements and are
submitting it to the GFOA to determine its eligibility for another certificate.
iii
The preparation of this report would not have been possible without the efficient and dedicated
services of the entire staff of all departments of the Village of Key Biscayne. We would like to
express our appreciation to all members of all of the departments who assisted and contributed to
the preparation of this report. We would also like to express our appreciation to Marcum LLP, our
independent auditors, for their assistance and efforts in helping the Village prepare the CAFR.
Appreciation is also extended to the Mayor and the Village Council for their unfailing support for
maintaining the highest standards of professionalism in the management of the Village of Key
Biscayne's finances.
Respectfully submitted,
+Gi eri
ge Manager
/
ivian Parks
Finance Director
iv
v
VILLAGE OF KEY BISCAYNE, FLORIDA
VILLAGE OFFICIALS
SEPTEMBER 30, 2014
VILLAGE COUNCIL
Mayra Peña Lindsay, Mayor
Franklin H. Caplan, Vice Mayor
Luis de la Cruz, Councilman
Michael E. Kelly, Councilman
Theodore J. Holloway, Councilman
Edward London, Councilwoman
James S. Taintor, Councilman
VILLAGE MANAGER
John C. Gilbert
VILLAGE CLERK
Conchita H. Alvarez, MMC
VILLAGE ATTORNEY
Weiss Serota Helfman Pastoriza Cole & Boniske, P.A.
FINANCE DIRECTOR
Vivian Parks
INDEPENDENT AUDITORS
Marcum LLP
vi
VOTERS
OF
KEY BISCAYNE
VOTERS
OF
KEY BISCAYNE
Village
Council
(7)
Village
Council
(7)
Local Planning
Agency
Local Planning
Agency
Village Clerk
(1.5)
Village Clerk
(1.5)Special Master
(2)
Special Master
(2)Village Manager
(2)
Village Manager
(2)Village AttorneyVillage Attorney Police/Fire
Retirement
Board (5)
Police/Fire
Retirement
Board (5)
Assistant to
the Manager
(1)
Assistant to
the Manager
(1)
Department of
Building,
Zoning and
Planning (16)
Department of
Building,
Zoning and
Planning (16)
Department of
Recreation (4)
Department of
Recreation (4)
Department of
Emergency
Services (73)
Department of
Emergency
Services (73)
Department of
Public
Works (2.5)
Department of
Public
Works (2.5)
Department of
Finance and
Administrative
Services (1.5)
Department of
Finance and
Administrative
Services (1.5)
BuildingBuilding
ZoningZoning
PlanningPlanning
Code AssistanceCode Assistance
Fire RescueFire Rescue
PolicePolice
Special EventsSpecial Events
Sports and
Athletics
Sports and
Athletics
Programs
and Tours
Programs
and Tours
Village EngineerVillage Engineer
Contract
Supervisor
Contract
Supervisor
Stormwater
Management
Stormwater
Management
Refuse
Collection
and Recycling
Refuse
Collection
and Recycling
MaintenanceMaintenance
Finance/
Accounting
Finance/
Accounting
Personnel/
Benefits
Personnel/
Benefits
Risk
Management
Risk
Management
VOTERS
OF
KEY BISCAYNE
VOTERS
OF
KEY BISCAYNE
Village
Council
(7)
Village
Council Local Planning
Agency
Local Planning
Agency
Village Clerk
(1.5)
Village Clerk Special Master
(2)
Special Master Village Manager
(2)
Village Manager
Village AttorneyVillage Attorney Police/Fire
Retirement
Board (5)
Police/Fire
Retirement
Board
Assistant to
the Manager
(1)
Chief of Staff/
Deputy Clerk
Department of
Building,
Zoning and
Planning (16)
Department of
Building,
Zoning and
Planning
Department of
Recreation (4)
Department of
Recreation
Department of
Emergency
Services (73)
Department of
Public Safety Department of
Public
Works (2.5)
Department of
Public Works
Department of
Finance and
Administrative
Services (1.5)
Department of
Finance and
Administrative
Services
BuildingBuilding
ZoningZoning
PlanningPlanning
Code AssistanceCode Assistance
Fire RescueFire Rescue
PolicePolice
Special EventsSpecial Events
Sports and
Athletics
Sports and
Athletics
Programs
and Tours
Programs
and Tours
Village EngineerVillage Engineer
Contract
Supervisor
Contract
Supervisor
Stormwater
Management
Stormwater
Management
Refuse
Collection
and Recycling
Refuse
Collection
and Recycling
MaintenanceMaintenance
Finance/
Accounting
Finance/
Accounting
Personnel/
Benefits
Human
Resources
Risk
Management
Risk
Management
Senior
Services
vii
FINANCIAL SECTION
INDEPENDENT AUDITORS’ REPORT
Marcum LLP n One Southeast Third Avenue n Suite 1100 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,
2014, 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.
2
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, 2014, 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. 65, Items Previously Reported as Assets and
Liabilities and Statement No. 67, Financial Reporting for Pension Plans – an amendment of GASB
Statement No. 25, as of October 1, 2013. Our opinion is not modified with respect to these matters.
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 budgetary comparison schedule,
on pages 63 and 64, and the required supplementary information for OPEB and the pension trust
fund on page 65 to 69 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
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the Village’s basic financial statements.
3
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.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated March 31,
2015 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 31, 2015
MANAGEMENT’S DISCUSSION AND ANALYSIS
(MD&A)
4
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, 2014. 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 plus deferred inflows at the close of the
most recent fiscal year resulting in a net position balance of $76,343,969.
The Village’s total net position decreased by $3,801,617. 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 $23,426,911, an increase of $136,207 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 plus
deferred outflows and liabilities plus deferred inflows, 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 Village’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, zoning and planning.
The government-wide financial statements include only the Village of Key Biscayne itself (known as the
primary government).
5
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 spendable 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 Storm-water, 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 62 of this report.
6
Other Information
In addition to the basic financial statements and accompanying notes, this report also presents certain
required supplementary information (RSI) including a budgetary comparison and the Village’s progress in
funding its obligation to provide pension benefits and other post-employment benefits to its employees as
well as the new RSI to comply with GASB Statement No. 67, Financial Reporting for Pension Plans.
Required supplementary information can be found on pages 63 to 69 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 plus deferred inflows by $76,343,969
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 $65,195,066. The Village of Key Biscayne uses these capital assets to provide services to
citizens; consequently, these assets are not available for future spending.
Our analysis of the financial statements of the Village begins below. The statement of net position and the
statement of activities report information about the Village’s activities that will help answer questions about
the position of the Village. A comparative analysis is provided with prior year information.
Net Position
A summary of the Village’s Net Position is presented in Table A-1 and a Summary of the Changes in Net
Position is presented in Table A-2.
2014 2013 2014 2013 2014 2013
Current assets 25,576,223$ 25,365,145$ 3,604,574$ 536,762$ 29,180,797$ 25,901,907$
Capital assets, net 72,482,311 73,041,630 21,985,489 23,203,899 94,467,800 96,245,529
Total Assets 98,058,534 98,406,775 25,590,063 23,740,661 123,648,597 122,147,436
Current liabilities 2,286,373 1,890,728 123,046 97,596 2,409,419 1,988,324
Noncurrent liabilities 34,620,457 32,694,582 10,201,308 7,018,944 44,821,765 39,713,526
Total Liabilities 36,906,830 34,585,310 10,324,354 7,116,540 47,231,184 41,701,850
Deferred inflows of resources 73,444 -- -- -- 73,444 --
Net investment in
capital assets 51,426,773 40,894,771 13,788,293 15,884,955 65,215,066 56,779,726
Restricted 3,455,654 3,138,445 -- -- 3,455,654 3,138,445
Unrestricted 6,195,833 19,788,249 1,477,416 439,166 7,673,249 20,227,415
Total Net Position 61,078,260$ 63,821,465$ 15,265,709$ 16,324,121$ 76,343,969$ 80,145,586$
Table A - 1
Summary of Net Position
Governmental Activities Business-typ e Activities Total
7
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 coupled with an
increase in long-term debt to fund the ongoing projects as well as the funding provided to the school board
for their school projects.
2014 2013 2014 2013 2014 2013
Revenues
Program revenues:
Charges for services 5,438,254$ 5,697,476$ 1,498,403$ 1,550,594$ 6,936,657$ 7,248,070$
Operating grants and contributions 97,970 426,917 -- -- 97,970 426,917
Capital grants and contributions 826,282 803,620 -- -- 826,282 803,620
General revenues:--
Property taxes 17,857,711 17,499,835 -- -- 17,857,711 17,499,835
Utility taxes 1,967,061 1,789,909 -- -- 1,967,061 1,789,909
Communications services tax 917,449 1,010,931 -- -- 917,449 1,010,931
Franchise fees 574,639 780,245 -- -- 574,639 780,245
Unrestricted intergovernmental revenue 1,902,177 1,772,208 -- -- 1,902,177 1,772,208
Investment income and miscellaneous 183,131 1,644,201 5,551 659 188,682 1,644,860
Total Revenues 29,764,674 31,425,342 1,503,954 1,551,253 31,268,628 32,976,595
Expenses
General government 8,526,705 9,344,606 -- -- 8,526,705 9,344,606
Public safety 14,185,888 13,089,686 -- -- 14,185,888 13,089,686
Parks and recreation 4,623,868 4,175,408 -- -- 4,623,868 4,175,408
Public works 1,798,163 2,221,905 -- -- 1,798,163 2,221,905
Building, zoning and planning 2,153,954 2,306,446 -- -- 2,153,954 2,306,446
Interest on long-term debt 962,167 935,242 -- -- 962,167 935,242
Stormwater -- -- 1,109,510 715,836 1,109,510 715,836
Solid waste collection -- -- 583,083 574,686 583,083 574,686
Sanitary sewer construction -- -- 1,126,907 1,133,209 1,126,907 1,133,209
Total Expenses 32,250,745 32,073,293 2,819,500 2,423,731 35,070,245 34,497,024
Change in Net Position before Transfers (2,486,071) (647,951) (1,315,546) (872,478) (3,801,617) (1,520,429)
Transfers (257,134) (28,134) 257,134 28,134 -- --
Changes in Net Position (2,743,205) (676,085) (1,058,412) (844,344) (3,801,617) (1,520,429)
Net Position - Beginning 63,821,465 64,497,550 16,324,121 17,168,465 80,145,586 81,666,015
Net Position - Ending 61,078,260$ 63,821,465$ 15,265,709$ 16,324,121$ 76,343,969$ 80,145,586$
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 position by $1,058,412 after transfers. In fiscal 2014, the
Stormwater and Sanitary Sewer funds both reflected decreases in net position as a result of depreciation.
The Solid Waste Fund, showed an increase of $8,032 due to the collection of aged receivables.
8
Governmental Activities
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 spendable 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 $18,899,836, an increase of
$1,242,723 in comparison with the prior year. The increase is primarily due the increase in taxes. All
balances have been categorized and set aside for the following uses: (1) Non-spendable: $353,823, (2)
Restricted: $1,485,319 (3) Committed: $5,304,153 and (4) Assigned: $11,756,541.
10
The general fund is the chief operating fund of the Village of Key Biscayne. As a measure of the general
fund’s liquidity, it may be useful to compare total fund balance to total fund expenditures. Total fund
balance represents 71% of total general fund expenditures.
A summary of the general fund’s balance sheet and statement of revenues, expenditures and changes in fund
balance is presented in Table B-1 and B-2 for September 30, 2014 and 2013, is shown as follows:
2014 2013
Total Assets 20,624,596$ 19,171,808$
Total Liabilities 1,724,760$ 1,514,695$
Fund Balance
Nonspendable 353,823 272,330
Restricted 1,485,319 1,466,704
Committed 5,304,153 5,065,439
Assigned 11,756,541 10,852,640
Total Fund Balance 18,899,836 17,657,113
Total Liabilities and Fund Balance 20,624,596$ 19,171,808$
2014 2013
Total Revenues 28,726,551$ 28,914,709$
Total Expenditures 26,706,241 25,624,263
Excess 2,020,310 3,290,446
Total Other Financing (uses)(777,587) (28,134)
Net Change in Fund Balance 1,242,723$ 3,262,312$
Table B-1
Summary of Balance Sheet
Table B-2
Expenditures and Changes in Fund Balances
Summary of 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.
In 2013 the fund showed a negative fund balance due to Phase Three of the Crandon Boulevard
Improvement Project. The negative fund balance was 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 2014 a
total of $618,533 was committed to the Capital Improvement Fund for specific projects as detailed in the
Village’s Five Year Capital Improvement Plan.
11
General Fund Budgetary Highlights
The only department with a significant budget to actual variance was the Fire Department. The principal
cause of the difference being compensated absences which are not budgeted but paid from a reserve account.
Capital Assets
As of September 30, 2014, the Village’s capital assets net of accumulated depreciation amounted to
$94,467,800 as compared to $96,245,529 as of September 30, 2013. Major capital asset events during the
fiscal year included the following:
Heather Drive Road Resurfacing
Village Green North Lighting Project
Tree Replacements
Street Sign Replacement Project
Continuation of the Beach Renourishment program
Continuation of capital lease program - Public Safety Vehicles
Harbor Drive Stormwater Outfall Project
Additional information on the Village’s capital assets can be found in Note 7 on pages 38-39 of this report.
Debt Administration
At September 30, 2014, the Village had bonded debt outstanding of $41,098,913 (composed of $30,897,605
in governmental activities and $10,210,308 of business-type activities) compared to $36,077,978 as of
September 30, 2013. Of this amount, $8,228,012 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 2014, the Village issued $4,575,000 school
Improvement Revenue Bonds as well as $6,575,000 of stormwater utility refunding and improvement
revenue bonds.
Additional information on the Village’s long-term debt can be found in Note 8 on pages 40-51 of this report.
Economic Factors and Next Year’s Budgets and Rates
As the local and national economy continues to recover, commercial real estate in Miami-Dade is showing
signs of improvement. Miami-Dade County is leading the way in attracting diverse new businesses to our
area. Based on these indicators, the Village of Key Biscayne continues to manage a budget that is responsive
to the needs of its community. As long term financial planning efforts continue, the Village has
implemented a 5 year Strategic Plan to determine the priorities for the Village and the initial indicators
needed to measure progress towards these priorities.
The unemployment rate for Miami-Dade County is 6.8%, which is a decrease from a rate of 7.1% a year ago.
The state’s average unemployment rate is 6.1% as of September 30, 2014. All of these factors were
considered during preparation of the Village of Key Biscayne’s budget for the 2015 fiscal year. The
Village’s millage rate for FY 2014 and FY2015 is 3.00.
Requests for Information
This financial report is designed to provide a general overview of the Village of Key Biscayne’s finances for
all those with an interest in the government’s finances. Questions concerning any of the information
provided in this report or requests for additional financial information should be addressed to the Office of
the Village Manager, 88 West McIntyre Street, Key Biscayne, Florida, 33149.
BASIC FINANCIAL STATEMENTS
Business-
Governmental type
Activities Activities Total
Assets
Cash and cash equivalents 11,794,934$ 1,398,962$ 13,193,896$
Investments 9,776,421 -- 9,776,421
Receivables, net 897,466 441,032 1,338,498
Prepaid items 353,824 -- 353,824
Internal balances 239,532 (239,532) --
Net pension asset 129,709 -- 129,709
Restricted assets:
Cash and cash equivalents 144,738 -- 144,738
Investments 2,239,599 2,004,112 4,243,711
Capital assets not being depreciated 27,070,147 142,302 27,212,449
Capital assets being depreciated, net 45,412,164 21,843,187 67,255,351
Total Assets 98,058,534 25,590,063 123,648,597
Liabilities
Accounts payable and accrued liabilities 1,205,202 123,046 1,328,248
Accrued interest payable 340,214 -- 340,214
Unearned revenue 740,957 -- 740,957
Noncurrent liabilities:
Due within one year 2,946,236 509,376 3,455,612
Due in more than one year 30,947,224 9,691,932 40,639,156
Net OPEB obligation 726,997 -- 726,997
Total Liabilities 36,906,830 10,324,354 47,231,184
Deferred Inflows of Resources
Business tax licenses 73,444 -- 73,444
Net Position
Net investment in capital assets 51,426,773 13,788,293 65,215,066
Restricted:
Building and zoning 1,534,793 -- 1,534,793
Community center 1,500,000 -- 1,500,000
Law enforcement 210,093 -- 210,093
Fire rescue 210,768 -- 210,768
Unrestricted 6,195,833 1,477,416 7,673,249
Total Net Position 61,078,260$ 15,265,709$ 76,343,969$
VILLAGE OF KEY BISCAYNE, FLORIDA
STATEMENT OF NET POSITION
SEPTEMBER 30, 2014
The accompanying notes are an integral part of these financial statements.
12
Charges Operating Capital Business-
for Grants and Grants and Governmental type
Functions/Programs Expenses Services Contributions Contributions Activities Activities Total
Governmental Activities
General government 8,526,705$ 160,800$ --$ --$ (8,365,905)$ --$ (8,365,905)$
Police 6,362,729 4,700 -- -- (6,358,029) -- (6,358,029)
Fire 7,823,159 210,678 -- -- (7,612,481) -- (7,612,481)
Public works 1,798,163 -- -- 826,282 (971,881) -- (971,881)
Building, zoning and planning 2,153,954 2,256,151 -- -- 102,197 -- 102,197
Parks and recreation 4,623,868 2,805,925 97,970 -- (1,719,973) -- (1,719,973)
Interest on long-term debt 962,167 -- -- -- (962,167) -- (962,167)
Total Governmental Activities 32,250,745 5,438,254 97,970 826,282 (25,888,239) -- (25,888,239)
Business-type Activities
Stormwater 1,109,510 907,324 -- -- -- (202,186) (202,186)
Sanitary sewer 1,126,907 -- -- -- -- (1,126,907) (1,126,907)
Solid waste 583,083 591,079 -- -- -- 7,996 7,996
Total Business-type Activities 2,819,500 1,498,403 -- -- -- (1,321,097) (1,321,097)
Total 35,070,245$ 6,936,657$ 97,970$ 826,282$ (25,888,239) (1,321,097) (27,209,336)
General Revenues
Property taxes 17,857,711 -- 17,857,711
Franchise fees based on gross receipts 574,639 -- 574,639
Utility taxes 1,967,061 -- 1,967,061
Communications services tax 917,449 -- 917,449
Unrestricted intergovernmental revenue 1,902,177 -- 1,902,177
Unrestricted investment earnings 34,991 5,551 40,542
Miscellaneous 148,140 -- 148,140
Transfers (257,134) 257,134 --
Total General Revenues and Transfers 23,145,034 262,685 23,407,719
Change in Net Position (2,743,205) (1,058,412) (3,801,617)
Net Position - Beginning 63,821,465 16,324,121 80,145,586
Net Position - Ending 61,078,260$ 15,265,709$ 76,343,969$
Changes in Net AssetsProgram Revenues
VILLAGE OF KEY BISCAYNE, FLORIDA
STATEMENT OF ACTIVITIES
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2014
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 10,636,077$ -- 1,158,857$ 11,794,934$
Investments 8,274,938 -- 1,501,483 9,776,421
Receivables, net 754,937 141,247 1,282 897,466
Due from other funds 369,744 -- -- 369,744
Prepaid items 353,824 -- -- 353,824
Restricted cash and cash equivalents -- 143,778 960 144,738
Restricted investments 235,076 -- 2,004,523 2,239,599
Total Assets 20,624,596$ 285,025$ 4,667,105$ 25,576,726$
Liabilities
Liabilities
Accounts payable and accrued liabilities 910,359$ --$ 294,843$ 1,205,202$
Due to other funds -- 129,173 1,039 130,212
Unearned revenue 740,957 -- -- 740,957
Total Liabilities 1,651,316 129,173 295,882 2,076,371
Deferred Inflows of Resources
Business tax licenses 73,444 -- -- 73,444
Fund Balances (Note 9)
Non-spendable 353,823 -- -- 353,823
Restricted 1,485,319 470,315 1,500,020 3,455,654
Committed 5,304,153 -- 2,871,203 8,175,356
Assigned 11,756,541 -- -- 11,756,541
Unassigned -- (314,463) -- (314,463)
Total Fund Balances (Deficit) 18,899,836 155,852 4,371,223 23,426,911
Total Liabilities and Fund Balances 20,624,596$ 285,025$ 4,667,105$
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 72,482,311
A net pension asset is not considered to represent a financial asset and
therefore is not reported in the governmental funds 129,709
Long-term liabilities, including bonds payable, are not due and payable in the current
period and therefore not reported in the funds (Note 2) (34,960,671)
Net Position of Governmental Activities 61,078,260$
VILLAGE OF KEY BISCAYNE, FLORIDA
STATEMENT OF NET POSITION
GOVERNMENTAL FUNDS
SEPTEMBER 30, 2014
The accompanying notes are an integral part of these financial statements.
14
Transportation Total
Special Capital Governmental
General Revenue Improvements Funds
Revenues
Property taxes 17,857,711$ --$ --$ 17,857,711$
Utility taxes 1,967,061 -- -- 1,967,061
Communications services tax 917,449 -- -- 917,449
Franchise fees 574,639 -- -- 574,639
Licenses and permits 2,090,916 -- -- 2,090,916
Intergovernmental 1,696,455 1,032,004 -- 2,728,459
Charges for services 3,347,338 -- -- 3,347,338
Interest 28,872 13 6,106 34,991
Grants 97,970 -- -- 97,970
Miscellaneous income and other 148,140 -- -- 148,140
Total Revenues 28,726,551 1,032,017 6,106 29,764,674
Expenditures
Current:
General government 2,457,034 -- 11,638 2,468,672
Fire 7,574,576 -- -- 7,574,576
Police 6,018,581 -- -- 6,018,581
Public works 1,732,554 -- -- 1,732,554
Building, zoning and planning 2,064,687 -- -- 2,064,687
Parks and recreation 4,170,205 -- 4,170,205
Capital outlay 90,127 -- 1,679,853 1,769,980
Debt service:
Principal 2,076,201 443,332 196,893 2,716,426
Interest and fiscal charges 522,276 154,579 199,094 875,949
Intergovernmental:
Payment under interlocal agreement -- -- 4,574,703 4,574,703
Total Expenditures 26,706,241 597,911 6,662,181 33,966,333
Excess (deficiency) of revenues
over expenditures 2,020,310 434,106 (6,656,075) (4,201,659)
Other Financing Sources (Uses)
Capital lease -- -- 20,000 20,000
Issuance of debt -- -- 4,575,000 4,575,000
Transfers in 191,820 -- 712,273 904,093
Transfers out (969,407) -- (191,820) (1,161,227)
Total Other Financing Sources (Uses)(777,587) -- 5,115,453 4,337,866
Net Change in Fund Balances 1,242,723 434,106 (1,540,622) 136,207
Fund Balances (Deficit) - Beginning 17,657,113 (278,254) 5,911,845 23,290,704
Fund Balances - Ending 18,899,836$ 155,852$ 4,371,223$ 23,426,911$
VILLAGE OF KEY BISCAYNE, FLORIDA
STATEMENT OF NET POSITION
GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2014
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 15) 136,207$
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 1,763,203$
Depreciation expense (2,322,522) (559,319)
The issuance of long-term debt provides current financial resources
to governmental funds, while the repayment of the principal of
long-term debt consumes the current financial resources of
governmental funds.
The detail of the differences are as follows:
Debt payments 2,436,429
Capital lease payments 279,997
Issuance of debt (4,575,000) (1,878,574)
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 131,973
Accrued interest (86,218)
Bond issue costs (238,564)
Net OPEB obligation (179,274)
Net pension asset (69,436) (441,519)
Change in net position of governmental activities (Page 13) (2,743,205)$
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, 2014
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 1,098,271$ 542$ 300,149$ 1,398,962$
Accounts receivables, net 233,194 -- 207,838 441,032
Restricted investments 2,004,112 -- -- 2,004,112
Due from other funds -- -- 345 345
Total Current Assets 3,335,577 542 508,332 3,844,451
Noncurrent Assets
Capital assets not being depreciated 142,302 -- -- 142,302
Capital assets being depreciated, net 6,004,655 15,838,532 -- 21,843,187
Total Noncurrent Assets 6,146,957 15,838,532 -- 21,985,489
Total Assets 9,482,534 15,839,074 508,332 25,829,940
Liabilities
Current Liabilities
Accounts payable and accrued liabilities 51,840 11,949 59,257 123,046
Due to other funds 143,267 -- 96,610 239,877
Current portion of revolving loans -- 209,376 -- 209,376
Current portion of revenue bonds payable 300,000 -- -- 300,000
Total Current Liabilities 495,107 221,325 155,867 872,299
Noncurrent Liabilities
Revenue bonds 5,955,000 -- -- 5,955,000
Revolving loans -- 3,736,932 -- 3,736,932
Total Noncurrent Liabilities 5,955,000 3,736,932 -- 9,691,932
Total Liabilities 6,450,107 3,958,257 155,867 10,564,231
Net Position
Net investment in capital assets 1,896,069 11,892,224 -- 13,788,293
Unrestricted 1,136,358 (11,407) 352,465 1,477,416
Total Net Position 3,032,427$ 11,880,817$ 352,465$ 15,265,709$
Business-type Activities -
Enterprise Funds
VILLAGE OF KEY BISCAYNE, FLORIDA
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
SEPTEMBER 30, 2014
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 907,324$ --$ 591,079$ 1,498,403$
Operating Expenses
General and administrative 582,537 -- 583,083 1,165,620
Depreciation 309,530 989,908 -- 1,299,438
Total Operating Expenses 892,067 989,908 583,083 2,465,058
Operating Income (Loss)15,257 (989,908) 7,996 (966,655)
Non-Operating Revenues (Expenses)
Interest income 5,493 22 36 5,551
Interest expense (181,729) (136,999) -- (318,728)
Write-off of bond issue costs (35,714) -- -- (35,714)
Total Non-Operating
Revenues (Expenses)(211,950) (136,977) 36 (348,891)
Income (Loss) before Transfers (196,693) (1,126,885) 8,032 (1,315,546)
Transfers in -- 257,134 -- 257,134
Change in Net Position (196,693) (869,751) 8,032 (1,058,412)
Net Position- Beginning 3,229,120 12,750,568 344,433 16,324,121
Net Position - Ending 3,032,427$ 11,880,817$ 352,465$ 15,265,709$
Business-type Activities -
Enterprise Funds
VILLAGE OF KEY BISCAYNE, FLORIDA
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2014
The accompanying notes are an integral part of these financial statements.
18
Stormwater Sanitary Solid Waste
Utility Sewer (A Nonmajor
System Construction
Fund)Totals
Cash Flows from Operating Activities
Receipts from customers and users 924,083$ --$ 656,869$ 1,580,952$
Payments for interfund services (519,027) -- -- (519,027)
Payments to suppliers (569,124) -- (571,046) (1,140,170)
Net Cash Provided by (Used in) Operating Activities (164,068) -- 85,823 (78,245)
Cash Flows from Non-Capital Financing Activities
Transfers in from general fund -- 257,134 -- 257,134
Cash Flows from Capital and Related
Financing Activities
Proceeds from revenue bond issuance 6,575,000 -- -- 6,575,000
Payments for construction of capital assets (81,029) -- -- (81,029)
Payments on revenue bonds (3,490,000) -- -- (3,490,000)
Payments on revolving loans -- (202,636) -- (202,636)
Interest paid (181,729) (136,998) -- (318,727)
Net Cash Provided by (Used in) Capital and Related
Financing Activities 2,822,242 (339,634) -- 2,482,608
Cash Flows from Investing Activities
Purchase of investments (2,004,112) -- -- (2,004,112)
Interest received 5,493 22 36 5,551
Net Cash Provided by (Used in) Investing Activities (1,998,619) 22 36 (1,998,561)
Net Increase (Decrease) in Cash and Cash Equivalents 659,555 (82,478) 85,859 662,936
Cash and Cash Equivalents - Beginning 438,716 83,020 214,290 736,026
Cash and Cash Equivalents - Ending 1,098,271$ 542$ 300,149$ 1,398,962$
Reconciliation of Operating Income (Loss) to Net
Cash Provided by (Used in) Operating Activities
Operating income (loss) 15,257$ (989,908)$ 7,996$ (966,655)$
Adjustments to reconcile operating income (loss) to net
cash provided by (used in) operating activities:
Depreciation 309,530 989,908 -- 1,299,438
Changes in operating assets and liabilities:
(Increase) decrease in:
Accounts receivable, net 16,759 -- (28,343) (11,584)
Due from other funds -- -- (345) (345)
Increase (decrease) in:
Accounts payable and accrued liabilities 13,413 -- 12,037 25,450
Due to other funds (519,027) -- 94,478 (424,549)
Total adjustments (179,325) 989,908 77,827 888,410
Net Cash Provided by (Used in) Operating Activities (164,068)$ --$ 85,823$ (78,245)$
Business-type Activities -
Enterprise Funds
VILLAGE OF KEY BISCAYNE, FLORIDA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2014
The accompanying notes are an integral part of these financial statements.
19
Assets
Investments
Money market funds 916,319$
Common stocks 8,303,786
Mutual funds 17,597,801
Private equity fund 690,604
Investments held in the Share Plan 1,050,896
Investments held in the DROP Plan 522,942
Total Investments 29,082,348
Contributions Receivable
State supplemental appropriation 76,284
Total Assets 29,158,632
Liabilities
Accounts payable and accrued liabilities 27,284
Deferred Inflows of Resources
Advance contribution from employer 56,220
Total Liabilities and Deferred Inflows of Resources 83,504
Net Position Restricted for Pension Benefits 29,075,128$
VILLAGE OF KEY BISCAYNE, FLORIDA
STATEMENT OF FIDUCIARY NET POSITION
PENSION TRUST FUND
SEPTEMBER 30, 2014
The accompanying notes are an integral part of these financial statements.
20
Additions
Contributions
Plan members 639,478$
Village (including State) 1,320,346
Total Contributions 1,959,824
Investment Income
Net appreciation in the fair value of investments 1,942,528
Net appreciation in the fair value of investments (Share and DROP) 77,476
Interest and dividends 673,096
Other 3,117
2,696,217
Less: investment expenses (63,432)
Net Investment Income 2,632,785
Total Additions 4,592,609
Deductions
Benefits paid 335,618
Refund of partcipant contributions 99,486
DROP distributions 52,470
Share Plan distributions 58,996
Administrative expenses 86,629
Total Deductions 633,199
Change in Net Position 3,959,410
Net Position, Restricted for Pension Benefits
Beginning of year 25,115,718
End of year 29,075,128$
VILLAGE OF KEY BISCAYNE, FLORIDA
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
PENSION TRUST FUND
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2014
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, 2014
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, 2014
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, 2014
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 System Fund (a major fund) accounts for the construction and
maintenance of the Village’s stormwater system.
The Sanitary Sewer Construction 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 major fund) accounts for the provision of solid waste disposal
services to Village residents and businesses.
Additionally, the Village reports the following fiduciary 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, 2014
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 Statement during the year ended
September 30, 2014 that had an impact on the financial statements:
GASB Statement No. 67, Financial Reporting for Pension Plans – An Amendment of
GASB Statement No. 25
For defined benefit pension plans, this Statement establishes standards of financial
reporting for pension trust funds and specifies the required approach to measuring the
pension liability of employers and non-employer contributing entities for benefit provided
through the plan (net pension liability), about which information is required to be
presented.
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2014
26
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
D. IMPLEMENTATION OF GOVERNMENTAL ACCOUNTING STANDARDS BOARD STATEMENTS
(CONTINUED)
The Village implemented the following GASB Statements during the fiscal year ended
September 30, 2014, which did have a significant impact on the financial statements:
GASB Statement No. 65, Items Previously Reported as Assets and Liabilities
This Statement establishes accounting and financial reporting standards that reclassify, as
deferred outflows of resources or deferred inflows of resources, certain items that were
previously reported as assets and liabilities. The Village expensed $238,564 and $35,714 of
bond issuance costs for the Governmental Activities and Business-type Activities,
respectively, during the fiscal year due to the implementation of this Standard. The amounts
were immaterial to the related opinion units.
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.
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2014
27
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
E. ASSETS, LIABILITIES, AND NET POSITION OR EQUITY (CONTINUED)
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
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 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 2014.
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
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2014
28
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
E. ASSETS, LIABILITIES, AND NET POSITION OR EQUITY (CONTINUED)
5. Unearned/Unavailable Revenue
Unavailable revenue is recorded for governmental fund revenues that are not both
measurable and available. The Village does not report any unavailable revenue. In
addition, inflows that do not yet meet the criteria for revenue recognition, such as
community center membership dues collected in advance, are recorded as unearned
revenue in the government-wide and the fund financial statements. Business tax
receipts are classified as a deferred inflow in the government-wide and fund level
financial statements.
6. Compensated Absences
It is the Village’s policy to permit employees to accumulate within certain limits,
earned but unused vacation time and sick leave, which will be paid to employees upon
separation from Village service. All vacation and sick leave pay is accrued when
incurred in the government-wide and proprietary fund financial statements. In the
governmental funds, a liability is recorded only for vacation and sick leave payouts for
employee separations that occurred prior to September 30, 2014 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 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. Bond issue costs are expensed as incurred.
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 as incurred.
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2014
29
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
E. ASSETS, LIABILITIES, AND NET POSITION OR EQUITY (CONTINUED)
8. 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 removed only by the Village Council
taking the same formal action (Ordinance/Resolution) that imposed the constraint
originally. Resources accumulated pursuant to stabilization arrangements sometimes
are reported in this category.
Assigned fund balance. Assigned fund balances are amounts that are constrained by the
Village’s intent to be used for specific purposes, but are neither restricted nor
committed. Intent is established by the Village Manager to which the Council has
delegated the authority to assign, modify or rescind amounts to be used for specific
purposes. There is no formal policy which has been established by Council delegating
this authority. This balance includes (a) all remaining amounts that are reported in
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2014
30
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
E. ASSETS, LIABILITIES, AND NET POSITION OR EQUITY (CONTINUED)
8. Fund Equity (continued)
governmental funds (other than the General Fund) that are not classified as
nonspendable, restricted, or committed, and (b) amounts in the General Fund that are
intended to be used for a specific purpose. Specific amounts that are not restricted or
committed in a special revenue fund are assigned for the purposes in accordance with
the nature of their fund type. Assignment within the General Fund conveys that the
intended use of those amounts is for a specific purpose that is narrower than the general
purposes of the Village itself.
See Note 9 for the detail of the amounts included in the various fund balance
classifications.
9. 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 and deferred inflows/outflows
incurred to acquire, construct or improve those assets, excluding unexpended proceeds.
Restricted net position is that portion of net position 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 position that does not meet the
definition of either of the other two components.
10. Use of Estimates
The preparation of financial statements in conformity with accounting principles
generally accepted in the United States requires management to make estimates and
assumptions that affect the 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, 2014
31
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
E. ASSETS, LIABILITIES, AND NET POSITION OR EQUITY (CONTINUED)
11. 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 $34,960,671
difference are as follows:
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2014
32
NOTE 2 – EXPLANATION OF CERTAIN DIFFERENCES BETWEEN THE GOVERNMENTAL FUND
BALANCE SHEET AND THE GOVERNMENT-WIDE STATEMENT OF NET POSITION
(CONTINUED)
Bonds Payable 30,897,605$
Capital Leases Payable 307,933
Compensated Absences 2,687,922
Accrued Interest Payable 340,214
Net OPEB Obligation 726,997
34,960,671$
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 0.12% to 0.80%. There are no certificates of deposit with original maturities of 90
days or less which would be presented as cash equivalents in the accompanying financial
statements. There are certificates of deposit with maturities ranging from 120 days to 1,650
days totaling $13,785,056 which are presented as investments in the accompanying
financial statements.
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2014
33
NOTE 3 – DEPOSITS AND INVESTMENTS (CONTINUED)
INVESTMENTS
The Village’s investment policy follows the requirements of Florida Statutes Chapter
218.415, and attempts to promote, in order of priority, safety of principal, adequate
liquidity, and maximization of total return. The Village’s investment policy authorizes
investments in direct obligations of the U.S. Government, its agencies or instrumentalities.
The Village is also authorized to invest in SEC registered money market mutual funds,
insured or fully collateralized deposits, repurchase agreements secured by direct obligations
of the U.S. Government, and authorized intergovernmental investment pools. The
investment policy defined in the statutes attempts to promote, through state assistance, the
maximization of net interest earnings on invested surplus funds of local units of
governments while limiting the risk to which the funds are exposed. The Village maintains
a separate investment policy for its pension plan.
INVESTMENTS – VILLAGE
As of September 30, 2014, the Village had the following fixed income investments with the
corresponding maturities in its portfolio:
Fair
Investments Value 1-5
Repurchase Agreements 7,209,723$ 7,209,723$
(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, 2014
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 $7.2
million investment in repurchase agreements is held by the investment’s counterparty, not
in the name of the Village. The Village’s investment policy does not have a limit on
holding of securities by counterparties.
INVESTMENTS – PENSION PLAN
For the Village’s pension plan, Florida statutes and the Plan’s investment policy authorize
the Trustees to invest funds in various investments. A Master Custodian Agreement is
maintained whereby the investment securities are held in the Plan’s name by a financial
institution acting as the Plan’s agent. The current target allocation of these investments at
fair value is as follows:
Authorized Investments Target % Allowable Range
Large cap growth equity 30% 20% - 40%
Mid-cap equity 10% 4% - 14%
Small-cap equity 5% 2% - 10%
International equity 15% 5% - 25%
Alternative - real estate (REIT) 5% 0% - 8%
High yield 3% 0% - 5%
Treasury Inflation Indexed Securities (TIPS) 2% 0% - 5%
Fixed income bonds 30%30% - 69%
Total 100%
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2014
35
NOTE 3 – DEPOSITS AND INVESTMENTS (CONTINUED)
INVESTMENTS – PENSION PLAN (CONTINUED)
As of September 30, 2014, the Village’s Defined Benefit Pension Plan had the following
fixed income investments with the corresponding maturities in its portfolio:
Fair Less
Investments Value Than 1 1-5 6-10 10+
Bond Mutual Funds 8,134,415$ 3,244,109$ 1,893,144$ 2,526,447$ 470,715$
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.
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, 2014, the value of each position held in
the Plan’s portfolio comprised less than 5% of Plan net position.
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2014
36
NOTE 3 – DEPOSITS AND INVESTMENTS (CONTINUED)
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.
NOTE 4 – RECEIVABLES
Receivables as of September 30, 2014 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 88,829$ --$ --$ 233,194$ 226,723$ --$ 548,746$
Contributions 76,284 -- -- -- -- 76,284 152,568
Property Taxes -- -- -- -- -- -- --
Intergovernmental 578,740 141,247 -- -- -- -- 719,987
Other 11,084 -- 1,282 -- -- -- 12,366
Gross Receivables 754,937 141,247 1,282 233,194 226,723 76,284 1,433,667
Less: Allowance for
Uncollectibles -- -- -- -- (18,885) -- (18,885)
Net Total Receivables 754,937$ 141,247$ 1,282$ 233,194$ 207,838$ 76,284$ 1,414,782$
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, 2014 was 3.00.
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2014
37
NOTE 5 – PROPERTY TAXES (CONTINUED)
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, 2014, there were no material delinquent taxes.
NOTE 6 – INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS
The composition of interfund balances as of September 30, 2014 is as follows:
Due from/to other funds:
Receivable Fund Payable Fund Amount
General Special Revenue 129,173$
Capital Improvements 1,039
Stormwater 142,922
Solid Waste 96,610
369,744$
Solid Waste Stormwater
345$
The outstanding balances between funds result mainly from the time lag between the dates that
(1) interfund goods and services are provided or reimbursable expenditures occur, (2)
transactions are recorded in the accounting system, and (3) payments between funds are made.
Interfund transfers:
Transfers Out Transfer In Amount
General Fund Sanitary Sewer 257,134$
General Fund Capital Improvements 712,273
Capital Improvements General Fund
(191,820)
777,587$
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2014
38
NOTE 6 – INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS (CONTINUED)
Interfund transfers (continued):
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, 2014 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 5,200,475 418,378 (382,543) 5,236,310
Total Capital Assets, Not Being Depreciated 27,034,312 418,378 (382,543) 27,070,147
Capital Assets, Being Depreciated
Buildings 24,998,264 -- -- 24,998,264
Improvements other than buildings 31,035,288 1,232,195 -- 32,267,483
Furniture, fixtures and equipment 8,604,925 495,173 -- 9,100,098
Total Capital Assets, Being Depreciated 64,638,477 1,727,368 -- 66,365,845
Less: Accumulated Depreciation for
Buildings (5,394,176) (505,105) -- (5,899,281)
Improvements other than buildings (6,788,916) (1,105,818) -- (7,894,734)
Furniture, fixtures and equipment (6,448,067) (713,664) 2,065 (7,159,666)
Total Accumulated Depreciation (18,631,159) (2,324,587) 2,065 (20,953,681)
Total Capital Assets, Being Depreciated, Net 46,007,318 (597,219) 2,065 45,412,164
Governmental Activities Capital Assets, Net 73,041,630$ (178,841)$ (380,478)$ 72,482,311$
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2014
39
NOTE 7 – CAPITAL ASSETS (CONTINUED)
Beginning Ending
Balance Increases Decreases Balance
Business-type Activities
Capital Assets, Not Being Depreciated
Construction in progress 103,213$ 39,089$ --$ 142,302$
Total Capital Assets, Not Being Depreciated 103,213 39,089 -- 142,302
Capital Assets, Being Depreciated
Stormwater utility system 10,726,942 41,939 -- 10,768,881
Sanitary Sewer system 18,808,259 -- -- 18,808,259
Total Capital Assets, Being Depreciated 29,535,201 41,939 -- 29,577,140
Less: Accumulated Depreciation for
Stormwater utility system (4,454,697) (309,529) -- (4,764,226)
Sanitary Sewer system (1,979,818) (989,909) -- (2,969,727)
Total Accumulated Depreciation (6,434,515) (1,299,438) -- (7,733,953)
Total Capital Assets, Being Depreciated, Net 23,100,686 (1,257,499) -- 21,843,187
Business-type Activities Capital Assets, Net 23,203,899$ (1,218,410)$ --$ 21,985,489$
Depreciation expense was charged as functions/programs of the primary government as
follows:
Governmental Activities
General government 1,121,252$
Police 344,148
Fire 248,583
Public works 65,609
Building, zoning and planning 89,267
Parks 453,663
Total Depreciation Expense - Governmental Activities 2,322,522$
Business-type Activities
Stormwater 309,530$
Sanitary Sewer 989,908
1,299,438$
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2014
40
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, 2014:
Beginning Ending Due Within
Balance Additions Reductions Balance One Year
Governmental Activities
Bonds Payable
Land acquisition and capital improvement
revenue bonds, Series 1999 4,955,000$ --$ (610,000)$ 4,345,000$ 640,000$
Capital improvement revenue refunding
bonds, Series 2011A 5,695,000 -- (660,000) 5,035,000 670,000
Capital improvement revenue refunding
bonds, Series 2011B 6,010,000 -- (570,000) 5,440,000 630,000
Capital improvement and land acquisition
revenue refunding bonds, Series 2011 1,580,000 -- (155,000) 1,425,000 155,000
Transportation tax revenue refunding
bonds, Series 2011 2,456,125 -- (182,999) 2,273,126 187,468
Road improvement revenue bonds,
Series 2006 2,487,909 -- (258,430) 2,229,479 268,137
School improvement revenue bonds,
Series 2012 5,575,000 -- -- 5,575,000 --
School improvement revenue bonds,
Series 2013 -- 4,575,000 -- 4,575,000 --
Total Bonds Payable 28,759,034 4,575,000 (2,436,429) 30,897,605 2,550,605
Other Liabilities
Capital leases 567,930 20,000 (279,997) 307,933 126,839
Compensated absences 2,819,895 1,479,855 (1,611,828) 2,687,922 268,792
Total Other Liabilities 3,387,825 1,499,855 (1,891,825) 2,995,855 395,631
Governmental Activities Long-Term Liabilities 32,146,859$ 6,074,855$ (4,328,254)$ 33,893,460$ 2,946,236$
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 $10,000,000 Land Acquisition and Capital
Improvement Revenue Bonds, Series 1999, the proceeds of which were used for the
acquisition of property and financing of the construction of the Civic Center project. The
bonds mature on July 23, 2019 with final payment due on December 1, 2019. The Village
has pledged non-ad valorem revenues to secure payment of the principal and interest on the
bonds. The bonds are due in annual principal installments. Interest accrues at 4.715% per
annum.
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2014
41
NOTE 8 – LONG-TERM DEBT (CONTINUED)
LAND ACQUISITION AND CAPITAL IMPROVEMENT REVENUE BONDS, SERIES 1999
(CONTINUED)
Debt service requirements to maturity are as follows:
Principal Interest Total
Fiscal Year Ending September 30
2015 640,000$ 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 775,000 56,698 831,698
2020 815,000 19,214 834,214
4,345,000$ 643,480$ 4,988,480$
CAPITAL IMPROVEMENT REVENUE REFUNDING BONDS, SERIES 2011A
On June 13, 2011, the Village issued $6,890,000 of Capital Improvement Revenue
Refunding Bonds, Series 2011A for the purpose of refunding the Village’s Capital
Improvement Revenue Bonds, Series 2000. The bonds mature on December 1, 2020. The
Village has pledged non-ad valorem revenues to secure payment of the principal and
interest on the bonds. The bonds are due in annual principal installments on each
December 1, commencing December 1, 2011. Interest accrues at 2.31% per annum.
Debt service requirements to maturity are as follows:
Principal Interest Total
Fiscal Year Ending September 30
2015 670,000$ 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 735,000 43,601 778,601
2020 1,520,000 35,343 1,555,343
5,035,000$ 417,475$ 5,452,475$
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2014
42
NOTE 8 – LONG-TERM DEBT (CONTINUED)
CAPITAL IMPROVEMENTS REVENUE REFUNDING BONDS, SERIES 2011B
On August 1, 2011 the Village issued $7,130,000 of Capital Improvement Revenue
Refunding Bonds, Series 2011B for the purpose of refunding the Village’s Capital
Improvement Revenue Bonds, Series 2002. The bonds mature on November 1, 2022. The
Village has pledged non-ad valorem revenues to secure payment of the principal and
interest on the bonds. The bonds bear interest on the outstanding principal balance from its
date of issuance payable quarterly on the first day of each February, May, August and
November commencing November 1, 2011, at an interest rate equal to 2.41% per annum.
Debt service to maturity is as follows:
Principal Interest Total
Fiscal Year Ending September 30
2015 630,000$ 125,019$ 755,019$
2016 605,000 110,438 715,438
2017 635,000 95,496 730,496
2018 650,000 80,102 730,102
2019 665,000 64,347 729,347
2020-2023 2,255,000 96,460 2,351,460
5,440,000$ 571,863$ 6,011,863$
CAPITAL IMPROVEMENT AND LAND ACQUISITION REVENUE REFUNDING BONDS, SERIES
2011
On August 1, 2011 the Village issued the $1,865,000 Capital Improvement and Land
Acquisition Revenue Refunding Bonds, Series 2011 for the purpose of refunding the
Capital Improvement and Land Acquisition Revenue Bonds, Series 2004. The Village has
pledged non-ad valorem revenues to secure payment of the principal and interest on the
bonds. The bonds mature on November 1, 2022. The bonds bear interest on the
outstanding principal balance from its date of issuance payable quarterly on the first day of
each February, May, August and November, commencing November 1, 2011, at an interest
rate equal to 2.41% per annum.
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2014
43
NOTE 8 – LONG-TERM DEBT (CONTINUED)
CAPITAL IMPROVEMENT AND LAND ACQUISITION REVENUE REFUNDING BONDS, SERIES
2011 (CONTINUED)
Debt service requirements to maturity are as follows:
Principal Interest Total
Fiscal Year Ending September 30
2015 155,000$ 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 170,000 16,960 186,960
2020-2023 600,000 25,365 625,365
1,425,000$ 150,264$ 1,575,264$
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 $461,282 and $205,722, respectively. The bonds mature on July 1, 2025.
The bonds bear interest on the outstanding principal balance from its date of issuance
payable quarterly on each January 1, April 1, July 1 and October 1 commencing January 1,
2012, at an interest rate equal to 2.42% per annum.
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2014
44
NOTE 8 – LONG-TERM DEBT (CONTINUED)
TRANSPORTATION TAX REVENUE REFUNDING BONDS, SERIES 2011 (CONTINUED)
Debt service requirements to maturity are as follows:
Principal Interest Total
Fiscal Year Ending September 30
2015 187,468$ 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 206,462 34,323 240,785
2020-2024 1,110,447 93,478 1,203,925
2025 178,425 2,163 180,589
2,273,126$ 315,313$ 2,588,439$
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
$2,588,439. For the current year, debt service and pledged revenues were $357,125 and
$365,000, respectively. The bonds are due in quarterly principal installments. Interest
accrues at 4.05% per annum.
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2014
45
NOTE 8 – LONG-TERM DEBT (CONTINUED)
ROAD IMPROVEMENT REVENUE BONDS, SERIES 2006 (CONTINUED)
Debt service requirements to maturity are as follows:
Principal Interest Total
Fiscal Year Ending September 30
2015 268,137$ 86,312$ 354,448$
2016 278,472 75,297 353,768
2017 289,206 63,857 353,062
2018 300,353 51,976 352,329
2019 311,930 39,637 351,567
2020-2022 781,382 41,945 823,327
2,229,479$ 359,023$ 2,588,502$
SCHOOL IMPROVEMENT REVENUE BONDS, SERIES 2012
On October 24, 2012, the Village issued $5,575,000 of School Improvement Revenue
Bonds, Series 2012 for the purpose of providing a portion of the financing of a permanent
secondary educational facility and recreational fields owned and operated by the School
Board of Miami-Dade County for Village residents located at the Mast Academy campus
as well as necessary renovations of the Key Biscayne K-8 Center, financing architectural,
engineering, environmental legal, and other planning costs related thereto, and paying cost
of issuance of the bonds. The bonds mature on October 1, 2032. The bonds bear interest
on the outstanding principal balance from its date of issuance payable semiannually on
each April 1 and October 1 (the "interest payment dates") commencing April 1, 2013, at an
interest rate equal to 3.35% per annum. The bonds require the Village to appropriate in its
annual budget, from non-ad valorem revenues amounts sufficient to cover debt service.
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2014
46
NOTE 8 – LONG-TERM DEBT (CONTINUED)
SCHOOL IMPROVEMENT REVENUE BONDS, SERIES 2012 (CONTINUED)
Debt service requirements to maturity are as follows:
Principal Interest Total
Fiscal Year Ending September 30
2015 --$ 186,763$ 186,763$
2016 267,942 182,274 450,216
2017 272,430 173,223 445,653
2018 276,993 164,020 441,013
2019 281,633 154,663 436,296
2020-2024 1,480,523 627,384 2,107,907
2025-2029 1,608,741 368,801 1,977,542
2030-2033 1,386,740 93,876 1,480,616
5,575,000$ 1,951,006$ 7,526,006$
SCHOOL IMPROVEMENT REVENUE BONDS, SERIES 2014
On July 1, 2014, the Village issued $4,575,000 of School Improvement Revenue Bonds,
Series 2014 for the purpose of providing an additional portion of the financing of a
permanent secondary educational facility and recreational fields owned and operated by the
School Board of Miami-Dade County for Village residents located at the Mast Academy
campus as well as necessary renovations of the Key Biscayne K-8 Center, financing
architectural, engineering, environmental legal, and other planning costs related thereto,
and paying cost of issuance of the bonds. The bonds mature on October 1, 2029. The
bonds bear interest on the outstanding principal balance from its date of issuance payable
semiannually on each April 1 and October 1 (the "interest payment dates") commencing
October 1, 2014, at an interest rate equal to 2.76% per annum. The bonds require the
Village to appropriate in its annual budget, from non-ad valorem revenues amounts
sufficient to cover debt service.
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2014
47
NOTE 8 – LONG-TERM DEBT (CONTINUED)
SCHOOL IMPROVEMENT REVENUE BONDS, SERIES 2014 (CONTINUED)
Debt service requirements to maturity are as follows:
Principal Interest Total
Fiscal Year Ending September 30
2015 --$ 25,956$ 25,956$
2016 250,000 126,270 376,270
2017 260,000 119,370 379,370
2018 265,000 112,194 377,194
2019 270,000 104,880 374,880
2020-2024 1,475,000 407,928 1,882,928
2025-2029 1,690,000 192,648 1,882,648
2030 365,000 10,074 375,074
4,575,000$ 1,099,320$ 5,674,320$
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 972,969$
Accumulated depreciation (470,121)
Carrying Value 502,848$
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2014
48
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, 2014 are as follows:
Fiscal Year Ending September 30
2015 47,966$
2016 134,030
2017 134,050
Total minimum lease payments 316,046
Less: amount representing interest 8,113
307,933$
The following is a summary of changes in long-term liabilities of the Village for business-
type activities for the year ended September 30, 2014:
Beginning Ending Due Within
Balance Additions Reductions Balance One Year
Business-type Activities
Bonds and Loans Payable
Stormwater utility revenue
refunding bond, Series 2011 3,170,000$ --$ (3,170,000)$ --$ --$
Stormwater utility refunding and
improvement revenue bond, Series 2013 -- 6,575,000 (320,000) 6,255,000 300,000
Revolving loan, 1996 236,970 -- (22,236) 214,734 22,809
Revolving loan, 2009 3,911,974 -- (180,400) 3,731,574 186,567
Total Bonds and Loans Payable 7,318,944 6,575,000 (3,692,636) 10,201,308 509,376
Business-type Activities
Long-Term Liabilities 7,318,944$ 6,575,000$ (3,692,636)$ 10,201,308$ 509,376$
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 bonds were refunded during fiscal year 2014, through the issuance of the
Stormwater Utility Refunding and Improvement Revenue Bonds, Series 2013 (current
refunding).
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2014
49
NOTE 8 – LONG-TERM DEBT (CONTINUED)
STORMWATER UTILITY REFUNDING AND IMPROVEMENT REVENUE BONDS, SERIES 2013
On January 7, 2014, the Village issued $6,575,000 Stormwater Utility Refunding and
Improvement Revenue Bonds, Series 2013 for the purpose of refunding the 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. There was an economic loss of $168,123 and no cash flow
savings on this refunding. 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 $926,801 and debt service was $481,526 for the year ended September 30,
2014. The bonds mature on October 1, 2029. The Bonds bear interest on the outstanding
principal balance from their date of issuance payable annually on each October 1
commencing October 1, 2014, at an interest rate equal to 3.35% per annum.
Debt service requirements to maturity are as follows:
Principal Interest Total
Fiscal Year Ending September 30
2015 300,000$ 209,543$ 509,543$
2016 310,000 199,493 509,493
2017 320,000 189,108 509,108
2018 335,000 178,388 513,388
2019 345,000 167,165 512,165
2020-2024 1,900,000 654,758 2,554,758
2025-2029 2,250,000 314,033 2,564,033
2030-2031 495,000 16,583 511,583
6,255,000$ 1,929,068$ 8,184,068$
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 2014 was $28,134 and state revenue sharing
was $270,503. The loan is payable in semi-annual payments over 20 years beginning on
April 15, 2003 at an interest rate of 2.56% per annum. The loan matures on October 15,
2022.
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2014
50
NOTE 8 – LONG-TERM DEBT (CONTINUED)
STATE REVOLVING FUND LOAN, 1996 (CONTINUED)
Debt service requirements to maturity are as follows:
Principal Interest Total
Fiscal Year Ending September 30
2015 22,809$ 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 25,252 2,882 28,134
2020-2023 94,661 4,854 99,515
214,734$ 25,451$ 240,185$
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
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 2014 was $311,500 and the pledged revenue
was $917,449. The loan is payable in semi-annual payments over 20 years beginning on
August 15, 2010 and is payable each August 15 and February 15 at an interest rate of
3.39% per annum. The loan matures on February 15, 2030.
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2014
51
NOTE 8 – LONG-TERM DEBT (CONTINUED)
STATE REVOLVING FUND LOAN, 2009 (CONTINUED)
Debt service requirements to maturity are as follows:
Principal Interest Total
Fiscal Year Ending September 30
2015 186,567$ 124,933$ 311,500$
2016 192,945 118,554 311,500
2017 199,542 111,958 311,500
2018 206,363 105,136 311,500
2019 213,418 98,081 311,500
2020-2024 1,181,653 375,845 1,557,498
2025-2029 1,397,932 159,566 1,557,498
2030 153,154 2,596 155,750
3,731,574$ 1,096,669$ 4,828,243$
NOTE 9 – FUND BALANCE CLASSIFICATIONS
As of September 30, 2014, 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
Prepaid items 353,823$
Restricted
Building inspections 1,064,478
Fire code violations 165,313
Fire grant revenue (UASI) 45,455
Law enforcement seizures 210,073
1,485,319
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2014
52
NOTE 9 – FUND BALANCE CLASSIFICATIONS (CONTINUED)
Committed
Emergencies 4,000,000
Fire rescue transport fees 1,214,152
Labor negotiations 90,000
5,304,153
Assigned
Compensated absences 624,227
Working capital (surplus) 11,132,314
11,756,542
Total Fund Balance - General Fund 18,899,837$
Committed
Capital improvement plan 2,870,264$
KB school improvements 940
2,871,203
Restricted
Police vehicle loan 20
Community center expansion 1,500,000
1,500,020
Total Fund Balance - Capital Improvements 4,371,223$
Restricted
Transportation surtax 470,315$
Unassigned (314,463)
Total Fund Balance - Transportation Special Revenue 155,852$
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2014
53
NOTE 10 – DEFINED CONTRIBUTION PLANS
The Village as a single-employer contributes to the Village of Key Biscayne Money
Purchase Plans, which are defined contribution plans created in accordance with Internal
Revenue Code Section 401(a). 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 11), were no longer eligible to contribute to the
401(a) plan. Employer contributions for the fiscal year ended September 30, 2014 were
$503,881 while the employee contributions were $179,930. Amendments to the Plan must
be authorized by the Village Council.
NOTE 11 – DEFINED BENEFIT PENSION PLAN
PLAN DESCRIPTION
Effective October 1, 1997, the Village established 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, 2013. The
PERS does not issue a stand-alone financial report for the Plan.
Under this Plan, all full-time police officers and firefighters employed by the Village are
eligible to participate. The monthly retirement benefit is equal to 3% of the average final
compensation for each year of service. The calculation for the average final compensation
is computed as one-twelfth of the average salary of the five highest years within the last ten
years of credited service. Credited service is determined by the total number of years
employed by the Village since August 1, 1993. Amendments to the Plan must be
authorized by the Village Council.
Members are vested after 5 years of service. Vested employees may retire at the earlier of
age 55 and the completion of five years of credited service or the age of 52 and the
completion of 25 years of credited service, or at age 50 with 5 years of service with the
benefit discounted 3% for each year under age 55.
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2014
54
NOTE 11 – DEFINED BENEFIT PENSION PLAN (CONTINUED)
PLAN DESCRIPTION (CONTINUED)
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 October 1, 2013 (date of the latest actuarial valuation), Plan membership
consisted of the following:
Inactive plan members and beneficiaries currently receiving benefits 22
Inactive plan members entitled but not yet receiving benefits 5
Active plan members 60
Total Members 87
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 18.24% of covered
payroll for the fiscal year ended September 30, 2014 which was determined by the
October 1, 2012 actuarial valuation. The participant contribution rate which is fixed by
ordinance is 10.5%. This funding policy is designed to limit the Village’s exposure to
contribute to the Plan. State contributions are recognized as a revenue and expenditure in
the general fund.
FUNDED STATUS AND FUNDING PROGRESS
The funded status of the Plan as of October 1, 2013, 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
10/1/2013 22,254,243$ 29,429,741$ 7,175,498$ 75.6% 6,349,849$ 113.0%
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2014
55
NOTE 11 – DEFINED BENEFIT PENSION PLAN (CONTINUED)
FUNDED STATUS AND FUNDING PROGRESS (CONTINUED)
The schedule of funding progress, presented as required supplementary information (RSI)
following the notes to the financial statements, presents multiyear trend information about
whether the actuarial value of plan assets are increasing or decreasing over time relative to
the AAL for benefits.
Additional information as of the latest actuarial valuation follows:
Valuation Date 10/1/13
Contribution Rates
Employer (and State) 19.15%
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* 7.90% 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 1,160,752$
Interest on Net Pension Obligation (Asset) (11,312)
Adjustment to Annual Required Contribution 21,567
Annual Pension Cost 1,171,007
Adjustment based on latest actuarial valuation 55,950
Contributions Made 1,045,621
Increase in Net Pension Asset 69,436
Net Pension Asset - Beginning of Year (199,145)
Net Pension Asset - End of Year (129,709)$
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2014
56
NOTE 11 – DEFINED BENEFIT PENSION PLAN (CONTINUED)
ANNUAL PENSION COST AND NET PENSION ASSET (CONTINUED)
Fiscal Annual Percentage Net Pension
Year Pension of APC Obligation
Ended Cost (APC) Contributed (Asset)
9/30/2012 1,032,592$ 99.2% $ (152,781)
9/30/2013 1,179,221 99.2%(199,145)
9/30/2014 1,171,007 89.3%(129,709)
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
2014, the Village transferred $60,880 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, 2014 is $1,050,896, 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, 2014, there were
ten (10) participants in the Plan. The balance in the Plan at September 30, 2014 is
$522,942, which is accounted for in the pension trust fund.
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2014
57
NOTE 12 –NET PENSION LIABILITY OF THE VILLAGE
The components of the net pension liability at September 30, 2014:
Total pension liability 30,105,178$
Plan fiduciary net position (29,075,128)
Net pension liability 1,030,050$
Plan fiduciary net position as a percentage
of total pension liability 96.58%
SIGNIFICANT ACTUARIAL ASSUMPTIONS
The total pension liability of the Village was determined by an actuarial valuation as of
September 30, 2014, using the following actuarial assumptions:
Interest rates:
Single discount rate 7.90%
Inflation rate 3.00%
Mortality table
Experience Study There was a limited experience study performed June 10, 2014
which was based on the actuarial valuation dated October 1,
2013.
RP-2000 Combined Healthy Participant Mortality Table for
males and females with mortality improvements projected after
year 2000 to the year 2010 using Scale BB.
LONG-TERM EXPECTED RATE OF RETURN
The long-term expected rate of return on pension plan investments was determined based
upon the historical average (means returns) which best-estimate ranges of expected future
real rates of return. In order to determine the real rates of return, it is necessary to subtract
the expected inflation rate from the nominal investment return and investment expenses.
The long-term expected rate of return for the Plan was calculated by weighting the expected
future rates of return of each asset class by the corresponding target allocation percentages.
Best estimates of real rates of return for each major asset class included in the Plan’s target
asset allocation as of September 30, 2014 are summarized in the following table:
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2014
58
NOTE 12 –NET PENSION LIABILITY (CONTINUED)
Long-Term Expected
Asset Class Real Rate of Return
Domestic equity 9.30%
International equity 3.00%
Fixed income 4.90%
Real estate 6.90%
Cash 1.30%
RATE OF RETURN
For the year ended September 30, 2014, the annual money-weighted rate of return on Plan
investments, net of investment expense, was 10.70%. The money-weighted rate of return
expresses investment performance, net of investment manager and consultant expenses
adjusted for the changing amounts actually invested. Inputs to the internal rate of return
calculation are determined on a monthly basis.
DISCOUNT RATE
A single discount rate of 7.90% was used to measure the total pension liability. This single
discount rate was based on the expected rate of return on Plan investments of 7.90%. The
projection of cash flows used to determine this single discount rate assumed that plan
member contributions will be made at the current contribution rate and that employer
contributions will be made at rates equal to the difference between actuarially determined
contribution rates and the member rate. Based on these assumptions, the pension Plan's
fiduciary net position was projected to be available to make all projected future benefit
payments of current plan members. Therefore, the long-term expected rate of return on
Plan investments was applied to all periods of projected benefit payments to determine the
total pension liability.
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2014
59
NOTE 12 –NET PENSION LIABILITY (CONTINUED)
SENSITIVITY OF THE NET PENSION LIABILITY TO CHANGES IN THE DISCOUNT RATE
Below is a table providing the sensitivity of the net pension liability to changes in the
discount rate. In particular, the table presents the Plan's net pension liability, if it were
calculated using a single discount rate that is 1-percentage-point lower or 1-percentage-
point higher than the single discount rate:
Current Single
1% Discount Rate 1%
Decrease Assumption Increase
6.90% 7.90% 8.90%
Net pension liability 4,290,536$ 1,030,050$ (1,738,079)$
NOTE 13 – 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.
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2014
60
NOTE 13 – OTHER POST-EMPLOYMENT BENEFITS (CONTINUED)
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 171,881$
Interest on Normal Cost --
Amortization of Unfunded Actuarial Accrued Liability 23,086
Annual Required Contribution 194,967
Interest of Net OPEB Obligation 19,170
Adjustment to ARC (20,286)
Annual OPEB Cost 193,851
Contributions Made (14,577)
Increase in Net OPEB Obligation 179,274
Net OPEB Obligation, Beginning of Year 547,723
Net OPEB Obligation, End of Year 726,997$
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 9/30/2014 9/30/2013 9/30/2012
Annual OPEB Cost 193,851$ 181,872$ 148,729$
Percentage of OPEB Cost Contributed 8% 2% 13%
Net OPEB Obligation 726,997 547,723 370,319
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2014
61
NOTE 13 – OTHER POST-EMPLOYMENT BENEFITS (CONTINUED)
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.
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)
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2014
62
NOTE 13 – OTHER POST-EMPLOYMENT BENEFITS (CONTINUED)
ACTUARIAL METHODS AND ASSUMPTIONS (CONTINUED)
Actuarial assumptions:
Investment rate of return* 3.50% compounded annually
Projected salary increases* 6.00% - 9.40%
Payroll growth assumptions 3.5 %
*Includes inflation at 3% per year
Healthcare cost trend rate(s):
Insurance Premiums
Select Rates 30.00% for 2013 and 7.50% 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 14 – 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.
NOTE 15 – COMMITMENTS AND CONTINGENCIES
LITIGATION
The Village is involved in several lawsuits incidental to its operations, the outcome of
which, in the opinion of management and legal counsel, would not have a material adverse
effect on the financial condition of the Village.
GRANTS CONTINGENCY
Federal and State programs in which the Village participates are subject to audit by grantor
agencies. Any disallowed claims, including amounts already collected, may constitute a
liability of the applicable funds. In the opinion of management, future disallowances of
grant expenditures, if any, would not have a material adverse effect on the financial
condition of the Village.
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 17,532,924$ 17,532,924$ 17,857,711$ --$ 17,857,711$ 324,787$
Utility taxes/communications
services tax 2,647,493 2,647,493 2,884,510 -- 2,884,510 237,017
Franchise fees 800,000 800,000 574,639 -- 574,639 (225,361)
Licenses and permits 1,424,750 1,424,750 2,090,916 -- 2,090,916 666,166
Intergovernmental 1,150,116 1,150,116 1,696,455 (367,627) 1,328,828 178,712
Charges for services 2,832,225 2,832,225 3,347,338 -- 3,347,338 515,113
Interest 15,000 15,000 28,872 -- 28,872 13,872
Grants -- -- 97,970 (32,474) 65,496 65,496
Miscellaneous income 52,000 52,000 148,140 -- 148,140 96,140
Total Revenues 26,454,508 26,454,508 28,726,551 (400,101) 28,326,450 1,871,942
Expenditures
Current:
General government:
Elected officials 219,087 219,087 147,525 -- 147,525 71,562
Village Clerk 361,507 361,507 321,426 -- 321,426 40,081
Administration 1,298,651 1,298,651 1,419,357 (120,706) 1,298,651 --
Village Attorney 495,000 495,000 573,429 (78,429) 495,000 --
Total general government 2,374,245 2,374,245 2,461,737 (199,135) 2,262,602 111,643
Public safety:
Police 6,020,706 6,020,706 6,049,412 (28,706) 6,020,706 --
Fire 7,012,912 7,012,912 7,604,739 (371,395) 7,233,344 (220,432)
Total public safety 13,033,618 13,033,618 13,654,151 (400,101) 13,254,050 (220,432)
Public works 1,712,454 1,712,454 1,739,743 (27,289) 1,712,454 --
Building, zoning and planning 1,890,515 1,890,515 2,068,967 (178,452) 1,890,515 --
Parks and recreation:
Parks 1,121,575 1,121,575 4,183,166 (250,000) 3,933,166 (2,811,591)
Community center 2,132,732 2,132,732 -- -- -- 2,132,732
Athletic division 638,622 638,622 -- -- -- 638,622
Total parks and recreation 3,892,929 3,892,929 4,183,166 (250,000) 3,933,166 (40,237)
Debt service:
Principal 2,290,660 2,290,660 2,076,201 -- 2,076,201 214,459
Interest and fiscal charges 641,196 641,196 522,276 -- 522,276 118,920
Total Expenditures 25,835,617 25,835,617 26,706,241 (1,054,977) 25,651,264 184,353
Excess (Deficiency) of
Revenues over Expenditures 618,891 618,891 2,020,310 (654,876) 2,675,186 2,056,295
Other Financing Sources (Uses)
Appropriation of prior years':
Reserves - working capital -- -- -- 476,424 -- --
Reserves - building division -- -- -- 88,324 -- --
Reserves - comp. absences -- -- -- 90,128 -- --
Transfers in -- -- 191,820 -- 191,820 191,820
Transfers out (618,891) (618,891) (969,407) -- (969,407) (350,516)
Total Other Financing Sources (Uses)(618,891) (618,891) (777,587) 654,876 (777,587) 158,696
Net Change in Fund Balances --$ --$ 1,242,723$ --$ 1,897,599$ (1,897,599)$
Budgeted Amounts
VILLAGE OF KEY BISCAYNE, FLORIDA
BUDGETARY COMPARISON SCHEDULE
GENERAL FUND
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2014
REQUIRED SUPPLEMENTARY INFORMATION
See note to budgetary comparison schedule.
63
VILLAGE OF KEY BISCAYNE, FLORIDA
REQUIRED SUPPLEMENTARY INFORMATION
NOTES TO BUDGETARY COMPARISON SCHEDULE
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2014
64
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,
2014, 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, 2014.
NOTE 2 – RECONCILIATION OF GAAP BASIS TO BUDGETARY BASIS
Revenue Reported on a GAAP Basis 28,726,551$
Defined Benefit Pension plan contributions provided
by the State of Florida, not budgeted by the Village (367,627)
Grants not budgeted (32,474)
Revenues on a Budgetary Basis 28,326,450$
Expenditures Reported on a GAAP Basis 26,706,241$
Defined Benefit Pension plan contributions provided
by the State of Florida, not budgeted by the Village (367,627)
Adjustments for prior year reserves - Community Center (250,000)
Payment for compensated absences (437,350)
Revenue Reported on a GAAP Basis 25,651,264$
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.
65
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
10/1/08 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%
10/1/13 22,254,243 29,429,741 7,175,498 75.6% 6,349,849 113.0%
VILLAGE OF KEY BISCAYNE, FLORIDA
PENSION TRUST FUND
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF FUNDING PROGRESS
66
September 30,
2014
Total Pension Liability
Service cost 1,325,960$
Interest 2,505,808
Benefit changes (4,253,914)
Difference between actual and expected experience (40,185)
Assumption changes (96,578)
Benefit payments (447,084)
Refunds (99,486)
Net Change in Total Pension Liability (1,105,479)
Total Pension Liability - Beginning 31,210,657
Total Pension Liability - Ending (a)30,105,178$
Plan Fiduciary Net Position
Contributions - employer 844,637$
Contributions - non-employer contributing entity 475,709
Contributions - member 639,478
Net investment income 2,632,785
Benefit payments (447,084)
Refunds (99,486)
Administrative expense (86,629)
Other --
Net Change in Plan Fiduciary Net Position 3,959,410
Plan Fiduciary Net Position - Beginning 25,115,718
Plan Fiduciary Net Position - Ending (b)29,075,128$
Net Pension Liability - Ending (a) - (b)1,030,050$
Plan Fiduciary Net Position as a Percentage of Total Pension Liability 96.58%
Covered Employee Payroll 6,053,762$
Net Pension Liability as a Percentage of Covered Employee Payroll 17.02%
VILLAGE OF KEY BISCAYNE, FLORIDA
REQUIRED SUPPLEMENTARY INFORMATION
PENSION TRUST FUND
NET PENSION LIABILITY AND RELATED RATIOS
SCHEDULE OF CHANGES IN THE VILLAGE'S
This schedule is presented as required by accounting principles generally accepted in the United
States of America, however, until a full 10-year trend is compiled, information is presented for
those years available.
67
Actual
Contribution
Actuarially Contribution as a % of
Year Ending Determined Actual Deficiency Covered Covered
September 30, Contribution Contribution (Excess) Payroll Payroll
2014 1,106,628$ 1,320,346$ (213,718)$ 6,053,762$ 21.81%
Methods and Assumptions Used to Determine Contribution Rates:
Valuation Date
Measurement Date
Notes
Actuarial Cost Method
Amortization Method
Remaining Amortization Period
Asset Valuation Method
Inflation
Salary Increases
Investment Rate of Return
Retirement Age
Mortality
Actuarially determined contributions are calculated as of
October 1, which is one year prior to the end of the year
in which contributions are reported.
Entry Age Normal
Level Dollar, Closed
October 1, 2013
VILLAGE OF KEY BISCAYNE, FLORIDA
REQUIRED SUPPLEMENTARY INFORMATION
PENSION TRUST FUND
SCHEDULE OF VILLAGE CONTRIBUTIONS
September 30, 2014
15 years
This schedule is presented as required by accounting principles generally accepted in the
United States of America, however, until a full 10-year trend is compiled, information is
presented for those years available.
3.00%
3.50% to 9.25% depending on service
7.90%
Experience-based table of rates that are specific to the
type of eligibility condition
20% RP-2000 Combined Healthy Participant Mortality
Table for males and females with mortality improvement
projected to all future years after 2000 using Scale BB;
80% Group Annuity Mortality Table for males and
females.
5-year smoothed market
68
September 30,
2014
Annual Money-Weighted Rate of Return, Net of Investment Expense 10.70%
VILLAGE OF KEY BISCAYNE, FLORIDA
REQUIRED SUPPLEMENTARY INFORMATION
PENSION TRUST FUND
SCHEDULE OF INVESTMENT RETURNS
This schedule is presented as required by accounting principles generally accepted in the
United States of America, however, until a full 10-year trend is compiled, information is
presented for those years available.
69
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.
70-74
Revenue Capacity
These schedules contain information to help the reader assess the Village's most
significant local revenue source, the property tax.
75-79
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.
80-83
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
84-86
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.
87-88
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.
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Governmental activities
Invested in capital assets,
net of related debt 26,284,600$ 28,676,266$ 31,422,358$ 36,139,953$ 38,482,243$ 41,377,118$ 43,428,433$ 44,373,229$ 43,714,666$ 51,426,773$
Restricted 326,826 359,899 261,813 284,639 308,813 -- 1,170,247 500,137 3,138,445 3,455,654
Unrestricted 4,302,680 4,926,634 8,453,390 10,924,001 15,055,000 16,540,883 16,491,371 19,598,291 16,968,354 6,195,833
Total governmental activities
net position 30,914,106 33,962,799 40,137,561 47,348,593 53,846,056 57,918,001 61,090,051 64,471,657 63,821,465 61,078,260
Business-type activities
Invested in capital assets,
net of related debt 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 13,788,293
Restricted -- -- -- -- -- -- -- -- -- --
Unrestricted 1,281,141 778,320 432,133 (2,209,685) (346,721) 1,116,111 1,133,034 706,195 439,166 1,477,416
Total business-type activities
net position 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 15,265,709
Total government
Net invested in capital assets 28,216,444 31,002,355 33,928,239 46,314,286 53,866,008 58,057,829 60,398,903 60,835,499 59,599,621 65,215,066
Restricted 326,826 359,899 261,813 284,639 308,813 -- 1,170,247 500,137 3,138,445 3,455,654
Unrestricted 5,583,821 5,704,954 8,885,523 8,714,316 14,708,279 17,656,994 17,624,405 20,304,486 17,407,520 7,673,249
Total government net position 34,127,091$ 37,067,208$ 43,075,575$ 55,313,241$ 68,883,100$ 75,714,823$ 79,193,555$ 81,640,122$ 80,145,586$ 76,343,969$
Fiscal Year
VILLAGE OF KEY BISCAYNE, FLORIDA
NET POSITION BY COMPONENT
LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
70
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Expenses
Governmental activities:
General government 2,914,734$ 4,252,037$ 3,781,396$ 3,213,273$ 2,868,728$ 2,751,697$ 2,830,412$ 3,379,954$ 9,344,606$ 8,526,705$
Police 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 6,362,729
Fire 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 7,823,159
Building, zoning and planning 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 2,153,954
Public works 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 1,798,163
Parks and recreation 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 4,623,868
Interest on long-term debt 1,305,383 1,413,272 1,505,253 1,436,481 1,447,387 1,366,437 1,217,874 843,965 935,242 962,167
Total governmental activities 19,500,420 23,289,202 21,311,134 23,531,083 23,643,292 23,601,302 24,252,869 25,089,084 32,073,293 32,250,745
Business-type activities:
Stormwater system 454,963 720,158 693,135 911,500 779,856 603,262 815,402 689,287 715,836 1,109,510
Solid waste collection 466,162 501,417 571,246 619,823 618,155 585,927 546,534 563,995 574,686 583,083
Sanitary sewer 10,261 9,993 9,454 9,046 144,922 39,178 197,474 1,234,279 1,133,209 1,126,907
Total business-type activities 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 2,819,500
Total government expenses 20,431,806$ 24,520,770$ 22,584,969$ 25,071,452$ 25,186,225$ 24,829,669$ 25,812,279$ 27,576,645$ 34,497,024$ 35,070,245$
Program revenues
Governmental activities:
Charges for services:
General government 1,257,895$ 1,466,186$ 1,389,163$ 1,320,004$ 237,315$ 181,992$ 169,307$ 177,574$ 140,587$ 160,800$
Police 212,121 40,719 21,385 14,203 38,181 (1,479) 1,763 375 1,455 4,700
Fire 7,120 50,392 40,144 146,588 136,433 158,975 190,989 145,544 188,169 210,678
Parks and recreation 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 2,805,925
Building, zoning and planning 142,550 167,802 193,391 133,104 1,173,440 1,247,715 2,184,127 2,347,092 2,744,711 2,256,151
Operating grants and contributions 650,679 3,559,753 799,493 251,180 157,912 163,752 77,638 6,629 426,917 97,970
Capital grants and contributions 517,643 -- -- -- 1,709,481 959,360 730,492 783,886 803,620 826,282
Total governmental activities program revenues 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 6,362,506
Business-type activities:
Charges for services:
Stormwater system 518,812 517,365 509,571 499,101 491,314 484,932 979,865 935,352 958,114 907,324
Solid waste collection 533,632 531,967 520,650 530,803 635,580 615,480 597,431 588,449 592,480 591,079
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 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 1,498,403
Total program revenues 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$ 7,860,909$
(Continued)
VILLAGE OF KEY BISCAYNE, FLORIDA
CHANGES IN NET POSITION
LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
Fiscal Year
71
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Net (expense) revenue
Governmental activities (15,424,606)$ (16,491,427)$ (17,450,851)$ (20,045,217)$ (18,232,783)$ (18,783,590)$ (18,610,570)$ (19,013,950)$ (25,145,280)$ (25,888,239)$
Business-type activities 121,058 (182,236) (243,614) 4,950,298 6,886,591 2,545,496 276,386 (963,760) (873,137) (1,321,097)
Total net expense (15,303,548)$ (16,673,663)$ (17,694,465)$ (15,094,919)$ (11,346,192)$ (16,238,094)$ (18,334,184)$ (19,977,710)$ (26,018,417)$ (27,209,336)$
General revenues
Governmental activities:
Taxes:
Property taxes 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$ 17,857,711$
Utility taxes 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 1,967,061
Franchise fees 705,810 1,088,929 1,113,194 1,064,666 992,997 1,006,415 735,519 846,252 780,245 574,639
Communications services tax 746,400 797,054 763,801 1,226,423 1,091,734 1,029,087 964,324 946,399 1,010,931 917,449
Intergovernmental 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 1,902,177
Investment earnings 255,611 306,339 641,115 346,531 44,737 21,346 37,254 37,985 16,722 34,991
Miscellaneous 281,657 -- -- -- 91,232 131,847 147,065 212,697 1,627,479 148,140
Transfers (28,135) (28,133) (28,133) (28,134) (164,502) (212,308) (28,134) (28,134) (28,134) (257,134)
Total governmental activities 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 23,145,034
Business-type activities:
Investment earnings 41,050 45,527 49,086 48,202 21,303 1,974 2,162 587 659 5,551
Transfers 28,135 28,133 28,133 28,134 164,502 212,308 28,134 28,134 28,134 257,134
Total business-type activities 69,185 73,660 77,219 76,336 185,805 214,282 30,296 28,721 28,793 262,685
Total general revenues 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$ 23,407,719$
Change in Net Position
Governmental activities 2,363,294$ 3,048,693$ 6,174,762$ 6,415,130$ 6,497,463$ 4,071,945$ 3,172,050$ 3,381,606$ (676,085)$ (2,743,205)$
Business-type activities 190,243 (108,576) (166,395) 5,026,634 7,072,396 2,759,778 306,682 (935,039) (844,344) (1,058,412)
Total change in net position 2,553,537$ 2,940,117$ 6,008,367$ 11,441,764$ 13,569,859$ 6,831,723$ 3,478,732$ 2,446,567$ (1,520,429)$ (3,801,617)$
CHANGES IN NET POSITION
(Continued)
LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
Fiscal Year
VILLAGE OF KEY BISCAYNE, FLORIDA
72
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
General fund
Non-spendable --$ --$ --$ --$ --$ --$ 305,730$ 303,918$ 272,330$ 353,823$
Restricted -- -- -- -- -- -- 1,170,247 1,054,070 1,466,704 1,485,319
Committed -- -- -- -- -- -- 12,039,224 4,858,269 5,065,439 5,304,153
Assigned -- -- -- -- -- -- 4,028,870 8,178,544 10,852,640 11,756,541
Reserved 5,754,277 6,874,310 9,875,416 11,298,178 12,318,533 15,286,689 -- -- -- --
Unreserved -- -- -- -- -- -- -- -- -- --
Total general fund 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 18,899,836
All other governmental funds
Committed -- -- -- -- -- -- 3,665,259 6,060,286 4,240,104 2,871,203
Unassigned -- -- -- -- -- -- (1,077,816) (690,343) (278,254) (314,463)
Restricted -- -- -- -- -- -- -- 573,701 1,671,741 1,970,335
Unreserved, reported in:
Special revenue fund (638,221) (1,496,749) (2,482,196) (2,701,623) (1,501,382) (1,299,432) -- -- -- --
Capital projects funds 881,595 1,421,014 2,954,753 4,783,222 6,875,361 5,195,557 -- -- -- --
Total other governmental funds 243,374 (75,735) 472,557 2,081,599 5,373,979 3,896,125 2,587,443 5,943,644 5,633,591 4,527,075
Total governmental funds 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$ 23,426,911$
Note: The Village implemented GASB Statement No. 54 for the fiscal year ended September 30, 2011.
VILLAGE OF KEY BISCAYNE, FLORIDA
FUND BALANCES OF GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
Fiscal Year
73
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Revenues
Ad valorem taxes 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$ 17,857,711$
Franchise fees 1,452,210 1,885,983 1,113,194 1,064,666 992,997 1,006,415 735,519 846,252 780,245 574,639
Utility taxes/communication services tax 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 2,884,510
Licenses and permits 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 2,090,916
Intergovernmental revenue 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 2,728,459
Charges for services 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 3,347,338
Grants 650,679 2,799,762 206,040 251,180 167,873 425,339 77,638 6,629 426,917 97,970
Investment income 255,611 306,339 632,355 338,528 44,737 21,346 37,254 37,985 16,722 34,991
Miscellaneous 281,657 -- 8,762 8,003 26,232 131,848 147,065 212,697 1,627,479 148,140
Total revenues 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 29,764,674
Expenditures
Current:
General government 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 2,468,672
Fire 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 7,574,576
Police 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 6,018,581
Public works 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 1,732,554
Building, planning and zoning 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 2,064,687
Parks and recreation 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 4,170,205
Capital outlay 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 1,769,634
Debt service:
Principal retirement 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 2,716,772
Interest and other fiscal charges 1,300,596 1,413,272 1,556,396 1,444,576 1,450,649 1,386,913 1,520,433 828,393 913,409 875,949
Total expenditures 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 29,391,630
Excess (deficiency) of revenues
over expenditures (2,204,756) (2,620,943) (421,078) 2,264,036 4,412,237 1,514,166 655,153 (368,935) 2,905,318 373,044
Other financing sources (uses)
Transfers in 1,245,653 1,731,583 6,697,854 4,533,094 3,236,194 -- -- 5,816,222 -- 904,093
Transfers out (1,273,788) (1,759,716) (6,725,988) (4,561,228) (3,400,696) (212,308) (28,134) (5,844,356) (28,134) (1,161,227)
Bonds issued 2,850,000 3,450,000 4,000,000 -- -- -- -- -- 5,575,075 4,575,000
Payment for interlocal agreement -- -- -- -- -- -- -- -- (5,500,000) (4,574,703)
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 -- 20,000
Total other financing sources (uses)3,226,336 3,421,867 3,971,866 (28,134) (99,502) (23,864) 293,547 575,866 46,941 (236,837)
Net change in fund balances 1,021,580$ 800,924$ 3,550,788$ 2,235,902$ 4,312,735$ 1,490,302$ 948,700$ 206,931$ 2,952,259$ 136,207$
Debt service as a percentage
of non-capital expenditures 14% 13% 16% 16% 17% 17% 18% 15% 15% 15%
VILLAGE OF KEY BISCAYNE, FLORIDA
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
Fiscal Year
74
Fiscal Ad Valorem Franchise Utility Inter- Communications
Year Taxes Taxes Taxes governmental Services Tax Total
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
2014 17,857,711 574,639 1,967,061 2,728,459 917,449 24,045,319
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.
75
Total
Fiscal Year Total Net Direct
Ended Residential Commercial Personal Assessed Tax
September 30, Property Property Property Value Rate
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
2014 5,800,745,002 313,747,054 37,410,973 6,151,903,029 3.000
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
76
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
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
2014 2013 3.000 3.000 4.704 0.422 5.126 7.644 0.333 7.977 0.035 0.352 0.731 17.221
(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 $1,000 of assessed value.
Sources: Village of Key Biscayne Finance Department and Miami-Dade County Property Appraiser's Office.
77
Percent of Percent of
Total Total
Net Village Net Net Village Net
Assessed Assessed Assessed Assessed
Taxpayer Value Rank Value Taxpayer Value Rank Value
Consultation Key Biscayne LLC 68,703,360$ 1 1.12% Sonesta Beach Resort, LP 42,737,620$ 1 1.10%
GB Hotel Partners LTD 60,800,000 2 0.99% GB Hotel Partners LTD 30,800,000 2 0.79%
Edward A. McCarthy-Archbishop 28,710,805 3 0.47% United Real Est Ventures Inc 20,273,758 3 0.52%
Red Dragon's Sands LTD 23,462,499 4 0.38% Galleria of Key Biscayne Inc 12,798,725 4 0.33%
Galleria of Key Biscayne, Inc. 21,096,350 5 0.34% Oceanclub Community Assoc 12,500,000 5 0.32%
Edgardo Defortuna 19,207,631 6 0.31% Red Dragon Sands LTD 11,858,160 6 0.31%
United Real Estate Ventures, Inc. 16,931,010 7 0.28% Sidney W Witter 10,689,702 7 0.28%
260 Cape Florida LLC 14,360,912 8 0.23% Claudio & Yvonne Alvarez 8,933,819 8 0.23%
Key Biscayne Properties LLC 14,000,000 9 0.23% Aurelio & Berta Fernandez 7,585,429 9 0.20%
Raul Hernandez 13,768,736 10 0.22% Roger & Susana Khouri 7,218,458 10 0.19%
281,041,303$ 4.57%165,395,671$ 4.27%
2014 2005
VILLAGE OF KEY BISCAYNE, FLORIDA
PRINCIPAL PROPERTY TAXPAYERS
CURRENT YEAR AND NINE YEARS AGO
78
Total Taxes
Fiscal Year Levied for Collections in
Ended Fiscal Percent Subsequent Percent
September 30, Year Amount of Levy Year's Amount of Levy
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%
2014 18,455,709 17,857,711 96.76% -- 17,857,711 96.76%
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
79
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
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
2014 -- 31,205,538 -- 9,245,000 10,201,308 50,651,846 0.23% 4,081
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
80
VILLAGE OF KEY BISCAYNE, FLORIDA
RATIOS OF GENERAL BONDED DEBT OUTSTANDING
LAST TEN FISCAL YEARS
The Village does not have general obligation debt.
81
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 31,205,538$ 100.00% 31,205,538$
Overlapping debt:
Miami-Dade County 1,345,898 2.45% 32,982
Miami-Dade County School Board 123,345 1.93% 2,385
Subtotal, Overlapping Debt 35,367
Total Direct and Overlapping Debt 31,240,905$
(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.
September 30, 2014
VILLAGE OF KEY BISCAYNE, FLORIDA
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
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.
82
Fiscal Year Non-
Ended Ad Valorem
September 30, Revenues Principal Interest Coverage
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 11,906,963 2,531,116 913,409 3.46
2014 11,906,963 2,716,772 875,949 3.31
VILLAGE OF KEY BISCAYNE, FLORIDA
PLEDGED REVENUE COVERAGE
LAST TEN FISCAL YEARS
Debt Service
Source: Village of Key Biscayne Finance Department.
83
Median Per Capita
Household Personal Unemployment
Year Population (1) Income (1) Income (1) Rate (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%
2014 12,344 115,691 47,485 6.1%
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
84
Percentage of Percentage of
Total Village Total Village
Employer Employees (1) Rank Employment Employees Rank Employment
Ritz Carlton Key Biscayne 1,500 1 not known 1,500 1 not known
Sonesta Beach Resort - - - 1,500 2 not known
Winn Dixie Stores, Inc. 250 2 not known 250 3 not known
Village of Key Biscayne 119 3 not known 100 4 not known
All remaining employers are of an extremely small number
Total 1,869 3,350
Source: Village of Key Biscayne Finance Department.
2003 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
2014 2007*
CURRENT YEAR AND SEVEN YEARS AGO
*Information prior to 2007 is not available.
85
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Number of employees
General government 7 6 6 6 8 7 7 7 7 7
Public safety 79 79 79 78 81 80 80 81 84 81
Building, planning and zoning 13 13 14 13 13 13 13 15 17 17
Public works 5 5 4 4 4 4 4 4 4 4
Parks and recreation 6 6 7 7 10 10 10 10 12 10
Total number of employees 110 109 110 108 116 114 114 117 124 119
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
86
Function/Program 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Public safety:
Police:
Police personnel and officers 40 40 40 39 42 41 41 42 44 41
Police calls for service 16,510 13,006 35,412 36,190 37,002 34,935 37,646 31,214 26,836 24,556
Parking violations 682 801 996 776 824 523 563 638 676 440
Traffic violations 1,397 1,468 1,104 946 975 1,425 1,269 1,542 1,875 846
Fire:
Fire personnel 39 39 39 39 39 39 39 39 40 40
Fire incidents 1,403 1,103 998 1,006 1,012 1,556 1,841 1,369 1,896 1,763
Fire inspections performed 332 269 220 305 229 267 469 323 469 739
Planning and development:
Building permits issued 3,045 3,000 3,504 3,620 3,650 4,371 3,723 3,402 3,885 3,876
Business tax receipts issued 423 576 931 978 1,095 1,129 1,165 1,187 937 987
Culture and recreation:
Number of building users 6,373 6,461 5,778 4,673 4,268 3,990 4,127 4,338 4,251 4,041
Solid waste:
Residential accounts 1,200 1,200 1,200 1,299 1,298 1,302 1,292 1,264 1,254 1,250
Sources: Various Village Departments.
LAST TEN FISCAL YEARS
OPERATING INDICATORS BY FUNCTION/PROGRAM
VILLAGE OF KEY BISCAYNE, FLORIDA
87
Function/Program 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
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/divisions 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 1
Swimming pools 1 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
88
REPORTING SECTION
Marcum LLP n One Southeast Third Avenue n Suite 1100 n Miami, Florida 33131 n Phone 305.995.9600 n Fax 305.995.9601 n www.marcumllp.com
89
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, 2014, 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 31, 2015.
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.
90
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 31, 2015
Marcum LLP n One Southeast Third Avenue n Suite 1100 n Miami, Florida 33131 n Phone 305.995.9600 n Fax 305.995.9601 n www.marcumllp.com
91
MANAGEMENT LETTER IN ACCORDANCE WITH THE RULES OF THE AUDITOR
GENERAL OF THE STATE OF FLORIDA
Honorable Mayor, Village Council and Village Manager
Village of Key Biscayne, Florida
We have audited the financial statements of the Village of Key Biscayne, Florida (the Village),
as of and for the fiscal year ended September 30, 2014, and have issued our report thereon dated
March 31, 2015.
Auditors’ Responsibility
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 Auditor General.
Other Reports
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; and Independent Accountants’ Report on an
examination conducted in accordance with AICPA Professional Standards, Section 601,
regarding compliance requirements in accordance with Chapter 10.550, Rules of the Auditor
General. Disclosures in those reports, which are dated March 31, 2015, should be considered in
conjunction with this management letter.
Prior Audit Findings
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. The prior year findings and recommendations were
addressed by the Village.
Official Title and Legal Authority
Section 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official title and
legal authority for the primary government and each component unit of the reporting entity be
disclosed in this management letter, unless disclosed in the notes to the financial statements.
The Village of Key Biscayne, Florida was incorporated by the Laws of Florida Chapter 2889.
There are no component units related to the Village.
92
Financial Condition
Section 10.554(1)(i)5.a., Rules of the Auditor General, requires that we report the results of our
determination as to whether or not the Village 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.
Pursuant to Sections 10.554(1)(i)5.c. and 10.556(8), 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.
Annual Financial Report
Section 10.554(1)(i)5.b., Rules of the Auditor General, requires that we report the results of our
determination as to whether the annual financial report for the Village for the fiscal year ended
September 30, 2014, 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, 2014. In connection with our audit, we determined that these two
reports were in agreement.
Other Matters
Section 10.554(1)(i)2., 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.
Section 10.554(1)(i)3., 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.
Purpose of this Letter
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, State and other granting agencies, the Honorable Mayor, Village
Council, and applicable management, and is not intended to be and should not be used by anyone
other than these specified parties.
Miami, FL
March 31, 2015
Marcum LLP n One Southeast Third Avenue n Suite 1100 n Miami, Florida 33131 n Phone 305.995.9600 n Fax 305.995.9601 n www.marcumllp.com
93
INDEPENDENT ACCOUNTANTS’ REPORT ON COMPLIANCE PURSUANT TO
SECTION 218.415 FLORIDA STATUTES
Honorable Mayor, Village Council and Village Manager
Village of Key Biscayne, Florida
We have examined the Village of Key Biscayne, Florida’s (the Village) compliance with Section
218.415 Florida Statutes for the fiscal year ended September 30, 2014. Management is
responsible for Village’s compliance with those requirements. Our responsibility is to express
an opinion on Village’s compliance based on our examination.
Our examination was conducted in accordance with attestation standards established by the
American Institute of Certified Public Accountants and, accordingly, included examining, on a
test basis, evidence about Village’s compliance with those requirements and performing such
other procedures as we considered necessary in the circumstances. We believe that our
examination provides a reasonable basis for our opinion. Our examination does not provide a
legal determination on Village’s compliance with specified requirements.
In our opinion, the Village of Key Biscayne, Florida complied, in all material respects, with the
aforementioned requirements for the fiscal year ended September 30, 2014.
This report is intended solely for the information and use of management, Village Council,
others within Village and the Auditor General of the State of Florida and is not intended to be
and should not be used by anyone other than these specified parties.
Miami, FL
March 31, 2015