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VILLAGE OF KEY BISCAYNE, FLORIDA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FISCAL YEAR ENDED SEPTEMBER 30, 2016
VILLAGE OF KEY BISCAYNE, FLORIDA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016
Prepared by:
THE FINANCE DEPARTMENT
VILLAGE OF KEY BISCAYNE, FLORIDA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016
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) ................. 4-12
Basic Financial Statements
Government-Wide Financial Statements:
Statement of Net Position .....................................................................................................13
Statement of Activities ..........................................................................................................14
Fund Financial Statements:
Governmental Fund Financial Statements:
Balance Sheet .....................................................................................................................15
Statement of Revenues, Expenditures and Changes in Fund Balances .............................16
Reconciliation of the Statement of Revenues, Expenditures and Changes in
Fund Balances of Governmental Funds to the Statement of Activities ..........................17
Proprietary Fund Financial Statements:
Statement of Net Position ..................................................................................................18
Statement of Revenues, Expenses and Changes in Net Position .......................................19
Statement of Cash Flows ...................................................................................................20
Fiduciary Fund Financial Statements:
Statement of Fiduciary Net Position ..................................................................................21
Statement of Changes in Fiduciary Net Position ...............................................................22
Notes to Basic Financial Statements .................................................................................. 23-67
Required Supplementary Information (Other Than MD&A)
Budgetary Comparison Schedule – General Fund ......................................................................68
Notes to Budgetary Comparison Schedule .................................................................................69
Schedule of Funding Progress – Other Post-Employment Benefits ...........................................70
Schedule of Changes in the Village’s Net Pension Liability and
Related Ratios – Pension Trust Fund .......................................................................................71
Schedule of Village Contributions – Pension Trust Fund ..........................................................72
Schedule of Investment Returns – Pension Trust Fund ..............................................................73
VILLAGE OF KEY BISCAYNE, FLORIDA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016
TABLE OF CONTENTS
Statistical Section
Net Position by Component ........................................................................................................74
Changes in Net Position ........................................................................................................ 75-76
Fund Balances of Governmental Funds ......................................................................................77
Changes in Fund Balances of Governmental Funds ...................................................................78
General Governmental Tax Revenues by Source .......................................................................79
Net Assessed Value and Estimated Actual Value of Taxable Property .....................................80
Property Tax Rates – Direct and Overlapping Governments .....................................................81
Principal Property Taxpayers ......................................................................................................82
Property Tax Levies and Collections ..........................................................................................83
Ratios of Outstanding Debt by Type ..........................................................................................84
Ratios of General Bonded Debt Outstanding .............................................................................84
Direct and Overlapping Governmental Activities Debt .............................................................86
Pledged Revenue Coverage ........................................................................................................87
Demographic and Economic Statistics .......................................................................................88
Principal Employers ....................................................................................................................89
Full-Time Equivalent Village Government Employees by Function .........................................90
Operating Indicators by Function/Program ................................................................................91
Capital Asset Statistics by Function/Program ............................................................................92
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 ................... 93-94
Management Letter in Accordance with the Rules of the Auditor General of the
State of Florida ................................................................................................................... 95-96
Independent Accountants’ Report on Compliance Pursuant to Section 218.415
Florida Statutes ........................................................................................................................97
INTRODUCTORY SECTION
VILLAGE 0 F KEY BISCAYNE
Village Council
Mayra P. Lindsay, Mqyor
Franklin H. Caplan, Vice Mqyor
Luis F. de la Cruz
Gary R. Gross
Allison McCormick
Brett G. Moss
Katie Petros
Director
Vivian Parks
Department of Finance and Administrative Services
June 6, 2017
To the Honorable Mayor, Members of the Village
Council and Citizens of the Village of Key Biscayne:
Florida Statutes require that all units oflocal 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 present the Comprehensive Annual Financial Report (CAFR) of the
Village of Key Biscayne for the fiscal year ended September 30, 2016.
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 reporl is complele and reliable in all malerial respeds.
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, 2016 are free of material misstatement.
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88 West Mcintyre Street • Suite 210 • Key Biscayne, Florida 33149 • (305) 365-8904 • Fax (305) 365-8936
MISSION STATEMENT: "TO PROVIDE A SAFE, QUALITY COMMUNITY ENVIRONMENT FOR ALL ISLANDERS THROUGH RESPONSIBLE GOVERNMENT."
www.keybiscayne.fl.gov
The independent audit involved examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements; assessing the accounting principles used and significant
estimates made by management; 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, 2016 are fairly presented in conformity with GAAP. The
independent auditors' 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 the 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 southernmost 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 13,000. 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, the
Village Clerk, and the Village Attorney. 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
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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
economic growth will likely have a favorable impact on many of the Village's intergovernmental
revenues such as sales tax and state revenue sharing. The Village continues to monitor operating
expenses closely while seeking possible new revenue sources.
Long-Term Financial Planning
The Village utilizes a comprehensive living projection five years into the future to assess revenue
trends and expenditure needs to assure a balanced stable financial program avoiding millage rate
increases while addressing the various goals and objectives of the community. Additionally, the
Village has modified its 5-Year Capital Plan by prioritizing needs based on its expected available
resources determined by its 5-Year financial forecast. This effort is also identifying capital
purchases that will be needed to continue its critical core public safety services, as well as other
departmental needs.
Financial Policies
The Village of Key Biscayne has policies on Debt Limitation, Emergency Reserve Funds and
Designation and Reservation of surplus fund. The allocation of surplus funds between committed
and assigned fund balance is made at the discretion of the Village Council.
Awards and Acknowledgements
The Government Finance Officers Association (GFOA) awarded a Certificate of Achievement for
Excellence in Financial Reporting to the Village of Key Biscayne for its Comprehensive Annual
Financial Report (CAFR) for the fiscal year ended September 30, 2015. This was the twenty third
consecutive year that the Village received this prestigious award. In order to be awarded a
Certificate of Achievement, the government published an easily readable and efficiently organized
CAFR. This report satisfied both GAAP and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe that our current
CAFR continues to meet the Certificate of Achievement Program's requirements and are
submitting it to the GFOA to determine its eligibility for another certificate.
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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,
Acting Finance Director
lV
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VILLAGE OF KEY BISCAYNE, FLORIDA
VILLAGE OFFICIALS
As of SEPTEMBER 30, 2016
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, Councilman
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
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ORGANIZATION CHART
2016
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
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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,
2016, and the related notes to the financial statements, which collectively comprise the Village’s
basic financial statements as listed in the table of contents.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this
includes the design, implementation, and maintenance of internal control relevant to the preparation
and fair presentation of financial statements that are free from material misstatement, whether due
to fraud or error.
Auditors’ Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We
conducted our audit in accordance with auditing standards generally accepted in the United States
of America and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States. Those standards require that we
plan and perform the audit to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on the auditors’ judgment,
including the assessment of the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor considers internal control
relevant to the Village’s preparation and fair presentation of the financial statements in order to
design audit procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the Village’s internal control. Accordingly, we
express no such opinion. An audit also includes evaluating the appropriateness of accounting
policies used and the reasonableness of significant accounting estimates made by management, as
well as evaluating the overall presentation of the financial statements.
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We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our audit opinions.
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, the business-type activities, each major
fund and the aggregate remaining fund information of the Village, as of September 30, 2016, 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.
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 12, the budgetary comparison schedule,
on pages 68 and 69, and the required supplementary information for OPEB and the pension trust
fund on pages 70 to 73 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.
The introductory and statistical sections have not been subjected to the auditing procedures applied
in the audit of the basic financial statements, and accordingly, we do not express an opinion or
provide any assurance on it.
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Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated June 6,
2017 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, 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
June 6, 2017
MANAGEMENT’S DISCUSSION AND ANALYSIS
(MD&A)
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Management’s Discussion and Analysis
As management of the Village of Key Biscayne, we offer readers of the Village of Key Biscayne’s (the
Village) financial statements this narrative overview and analysis of the financial activities of the Village of
Key Biscayne for the fiscal year ended September 30, 2016. 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 and deferred outflows of resources of the Village of Key Biscayne exceeded its liabilities at
the close of the most recent fiscal year resulting in a net position balance of $88,625,610.
The Village’s total net position increased by $2,163,752 prior to the prior period adjustment. Key
components of the Village’s net position and changes 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 $26,879,391, a decrease of $4,450,277 in comparison with the prior year.
Overview of the Financial Statements
This discussion and analysis is 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, liabilities,
and deferred inflows/outflows with the difference 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 planning and zoning.
The government-wide financial statements include only the Village of Key Biscayne itself (known as the
primary government).
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The government-wide financial statements can be found on pages 13 and 14 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 15 to 17 of this report.
Proprietary Funds. The Village maintains one type of proprietary fund. Enterprise funds are used to
report the same functions presented as business-type activities in the government-wide financial
statements. The Village uses enterprise funds to account for its Stormwater, Solid Waste Collection and
Sanitary Sewer Construction operations.
The basic proprietary fund financial statements can be found on pages 18-20 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 21-22 of this report.
Notes to the basic financial statements. The notes provide additional information that is essential to a
full understanding of the information provided in the government-wide and fund financial statements.
The notes to the financial statements can be found on pages 23 to 67
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Other Information
In addition to the basic financial statements and accompanying notes, this report also presents certain
required supplementary information including budgetary comparisons and the Village’s progress in
funding its obligations to provide pension benefits and other post-employment benefits to its employees.
Required supplementary information can be found on pages 68 to 73 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 and deferred outflows of resources exceeded liabilities
and deferred inflows of resources by $88,625,610 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 $65,221,578. The Village of Key Biscayne uses these capital assets to provide services to
citizens; consequently, these assets are not available for future spending.
Our analysis of the financial statements of the Village begins below. The Statement of Net Position and
the Statement of Activities report information about the Village’s activities that will help answer questions
about the financial position of the Village. A comparative analysis is provided with prior year information.
Net Position
A Summary of the Village’s Net Position is presented in Table A-1 and a Summary of the Changes in Net
Position is presented in Table A-2.
2016 2015 2016 2015 2016 2015
Current assets 31,390,124$ 34,092,148$ 2,712,428$ 2,892,163$ 34,102,552$ 36,984,311$
Capital assets, net 77,544,233 73,384,971 20,548,697 20,678,937 98,092,930 94,063,908
Total Assets 108,934,357 107,477,119 23,261,125 23,571,100 132,195,482 131,048,219
Deferred Outflows of Resources 3,205,217 1,113,486 -- -- 3,205,217 1,113,486
Current liabilities 4,670,331 2,948,501 46,422 690,620 4,716,753 3,639,121
Noncurrent liabilities 32,337,298 33,335,554 9,302,484 9,165,592 41,639,782 42,501,146
Total Liabilities 37,007,629 36,284,055 9,348,906 9,856,212 46,356,535 46,140,267
Deferred Inflows of Resources 418,554 555,687 -- -- 418,554 555,687
Net investment in
capital assets 51,961,356 54,854,783 13,260,222 12,995,027 65,221,578 67,849,810
Restricted 3,425,433 2,405,158 -- -- 3,425,433 2,405,158
Unrestricted 19,326,602 14,490,922 651,997 719,861 19,978,599 15,210,783
Total Net Position 74,713,391$ 71,750,863$ 13,912,219$ 13,714,888$ 88,625,610$ 85,465,751$
Table A - 1
Summary of Net Position
Governmental Activities Business-type Activities Total
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As demonstrated in Table A-1, Summary of Net Position, the Village’s current position increased
throughout the year. The increase is mainly attributable to an increase in property tax revenue.
2016 2015 2016 2015 2016 2015
Revenues
Program revenues:
Charges for services 6,060,520$ 6,218,633$ 1,560,724$ 1,540,486$ 7,621,244$ 7,759,119$
Operating grants and contributions 54,331 85,315 164,176 47,872 218,507 133,187
Capital grants and contributions 867,197 7,854,679 -- -- 867,197 7,854,679
General revenues:
Property taxes 22,249,642 19,353,288 -- -- 22,249,642 19,353,288
Utility taxes 2,007,095 1,979,733 -- -- 2,007,095 1,979,733
Communications services tax 753,385 862,165 -- -- 753,385 862,165
Franchise fees 603,889 595,196 -- -- 603,889 595,196
Unrestricted intergovernmental revenue 1,955,183 1,901,774 -- -- 1,955,183 1,901,774
Investment income and miscellaneous 193,000 186,200 5,986 3,911 198,986 190,111
Total Revenues 34,744,242 39,036,983 1,730,886 1,592,269 36,475,128 40,629,252
Expenses
General government 7,579,355 4,100,859 -- -- 7,579,355 4,100,859
Public Safety 13,390,298 9,449,086 -- -- 13,390,298 9,449,086
Parks and Recreation 5,388,588 4,850,623 -- -- 5,388,588 4,850,623
Public Works 2,078,721 1,823,897 -- -- 2,078,721 1,823,897
Building, Zoning and Planning 2,165,717 2,075,416 -- -- 2,165,717 2,075,416
Interest on long-term debt 796,152 816,313 -- -- 796,152 816,313
Stormwater -- -- 934,223 1,783,865 934,223 1,783,865
Solid waste collection -- -- 840,730 582,943 840,730 582,943
Sanitary sewer construction -- -- 1,137,592 1,120,166 1,137,592 1,120,166
Total Expenses 31,398,831 23,116,194 2,912,545 3,486,974 34,311,376 26,603,168
Change in Net Position before transfers 3,345,411 15,920,789 (1,181,659) (1,894,705) 2,163,752 14,026,084
Transfers (382,883) (343,884) 382,883 343,884 -- --
Changes in Net Position 2,962,528 15,576,905 (798,776) (1,550,821) 2,163,752 14,026,084
Net Position - Beginning, previously reported 71,750,863 61,078,260 13,714,888 15,265,709 85,465,751 76,343,969
Prior period adjustment -- (4,904,302) 996,107 -- 996,107 (4,904,302)
Net Position - Beginning 71,750,863 56,173,958 14,710,995 15,265,709 86,461,858 71,439,667
Net Position - Ending 74,713,391$ 71,750,863$ 13,912,219$ 13,714,888$ 88,625,610$ 85,465,751$
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 $798,776 after transfers prior to prior
period adjustment. In fiscal 2016, the Stormwater and Sanitary Sewer funds both reflected decreases in
net position as a result of depreciation. The Solid Waste Fund, showed a decrease of $188,275 due to
an increase in contractual services.
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Governmental Activities
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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 $27,949,968, an increase of
$397,876 in comparison with the prior year. The increase is primarily due the increase in property tax
revenue. All balances have been categorized and set aside for the following uses: (1) Non-spendable:
$443,084, (2) Restricted: $2,795,695 (3) Committed: $11,606,197 and (4) Assigned: $13,104,992.
10
The general fund is the chief operating fund of the Village of Key Biscayne. As a measure of the general
fund’s liquidity, it may be useful to compare total fund balance to total fund expenditures. Total fund
balance represents 98% of total general fund expenditures.
A summary of the general fund’s balance sheet and statement of revenues, expenditures and changes in
fund balance is presented in Table B-1 and B-2 for September 30, 2016 and 2015, is as follows:
2016 2015
Total Assets 30,610,340$ 30,096,138$
Total Liabilities 2,660,372$ 2,544,046$
Fund Balance
Nonspendable 443,084 268,176
Restricted 2,795,695 1,875,857
Committed 11,606,197 13,538,053
Assigned 13,104,992 11,870,006
Total Fund Balance 27,949,968 27,552,092
Total Liabilities and Fund Balance 30,610,340$ 30,096,138$
2016 2015
Total Revenues 33,624,225$ 37,963,199$
Total Expenditures 28,583,263 27,111,436
Excess 5,040,962 10,851,763
Total Other Financing Sources (Uses)(4,643,086) (2,199,507)
Net Change in Fund Balance 397,876$ 8,652,256$
Table B-1
Summary of General Fund Balance Sheet
Table B-2
Revenues, Expenditures and Changes in Fund Balances
Summary of General Fund Statement of
Overall total revenues in fiscal year 2015 was $37,963,199 as compared to $33,624,225 in 2016. The
fluctutaion relates to the net effect of a non-recurring $7,000,000 contribution in 2015 and a decrease of
licenses and permits revenue, and franchise fees in 2016 as compared to prior year.
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 2016, the Transportation Fund shows a fund balance of $1,044,004, of which $629,740 is restricted
for transit projects.
11
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. Fiscal
year 2016 reflects a negative unassigned balance of $2,114,581 due to an interlocal agreement with the
Miami-Dade County School Board for the enhancement of shared playing fields. That balance is to be
funded with future general fund surplus.
General Fund Budgetary Highlights
The only departments with a significant budget to actual negative variance were the Village Attorney and the
Parks & Recreation Department. The principal cause of the difference in the Village Attorney department
was due to litigation against the National Marine Manufacturers Association and the City of Miami in
reference to the boat show, and in the Parks & Recreation Department the difference was caused by an
increase in Professional Services program revenues, which is compensated for by an increase in Program
revenues.
Capital Assets
As of September 30, 2016, the Village’s capital assets net of accumulated depreciation amounted to
$98,092,930 as compared to $95,060,015 as of September 30, 2015 prior to the adjustment of $996,107.
Major capital asset events during the fiscal year included the following:
Open Space/Land purchase: 401 Hampton Lane
Establishment of Dog Park within Village Green
Continuation of Community Center Expansion
Resurfacing East of Crandon
Continuation of the Beach Renourishment program
Continuation of tree replacement
Uplighting LED replacement program
Public Safety - Body Cameras
Village-wide Phone System Upgrade
Additional information on the Village’s capital assets can be found in Note 7 on pages 42-44 of this report.
Debt Administration
At September 30, 2016, the Village had bonded debt outstanding of $34,271,982 (composed of $24,969,498
in governmental activities and $9,302,484 of business-type activities) compared to $37,793,090 as of
September 30, 2015. Of this amount, $3,737,354 represents bonds secured solely by specified revenue
sources (Transportation Tax Revenue Bonds, Road Improvement Revenue Bonds and State Revolving Fund
Loans). The remainder represents special obligation bonds that are secured by non-ad valorem revenues
through covenants to budget and appropriate.
Additional information on the Village’s long-term debt can be found in Note 8 on pages 45-55 of this report.
Economic Factors and Next Year’s Budgets and Rates
As the local and national economy continues to recover, commercial real estate in Miami-Dade continues to
improve. Miami-Dade County is leading the way in attracting diverse new businesses to our area. Based on
these indicators, the Village of Key Biscayne continues to manage a budget that is responsive to the needs of
its community. Long term financial planning efforts continue, the Village has implemented a 5 year Strategic
Plan to determine the priorities for the Village and the initial indicators needed to measure progress towards
these priorities.
12
The unemployment rate for Miami-Dade County is 5.2%, which is a decrease from a rate of 6.0% a year ago.
The state’s average unemployment rate is 4.9% as of September 30, 2016. All of these factors were
considered during preparation of the Village of Key Biscayne’s budget for the 2017 fiscal year. The Village’s
millage rate for fiscal year 2016 and fiscal year 2017 is 3.00.
Requests for Information
This financial report is designed to provide a general overview of the Village of Key Biscayne’s finances for
all those with an interest in the government’s finances. Questions concerning any of the information provided
in this report or requests for additional financial information should be addressed to the Office of the Village
Manager, 88 West McIntyre Street, Key Biscayne, Florida, 33149.
BASIC FINANCIAL STATEMENTS
Business-
Governmental type
Activities Activities Total
Assets
Cash and cash equivalents 6,372,606$ 474,813$ 6,847,419$
Investments 20,010,821 -- 20,010,821
Receivables, net 960,425 478,403 1,438,828
Prepaid items and other assets 443,084 500 443,584
Internal balances 255,297 (255,297) --
Restricted assets:
Cash and cash equivalents 1,067,134 -- 1,067,134
Investments 2,280,757 2,014,009 4,294,766
Capital assets not being depreciated 31,434,461 -- 31,434,461
Capital assets being depreciated, net 46,109,772 20,548,697 66,658,469
Total Assets 108,934,357 23,261,125 132,195,482
Deferred Outflows of Resources
Pension 3,205,217 -- 3,205,217
Liabilities
Accounts payable and accrued liabilities 3,415,207 46,422 3,461,629
Accrued interest payable 159,598 -- 159,598
Payable to pension plan 216,248 -- 216,248
Unearned revenue 879,278 -- 879,278
Noncurrent liabilities:
Due within one year 3,956,525 666,076 4,622,601
Due in more than one year 23,747,511 8,636,408 32,383,919
Net pension liability 3,596,548 -- 3,596,548
Net OPEB obligation 1,036,714 -- 1,036,714
Total Liabilities 37,007,629 9,348,906 46,356,535
Deferred Inflows of Resources
Pension 418,554 -- 418,554
Net Position
Net investment in capital assets 51,961,356 13,260,222 65,221,578
Restricted:
Building and zoning 2,259,562 -- 2,259,562
Transportation 629,740 -- 629,740
Law enforcement 200,016 -- 200,016
Fire rescue 336,115 -- 336,115
Unrestricted 19,326,602 651,997 19,978,599
Total Net Position 74,713,391$ 13,912,219$ 88,625,610$
VILLAGE OF KEY BISCAYNE, FLORIDA
STATEMENT OF NET POSITION
SEPTEMBER 30, 2016
The accompanying notes are an integral part of these financial statements.
13
Charges Operating Capital Business-
for Grants and Grants and Governmental type
Functions/Programs Expenses Services Contributions Contributions Activities Activities Total
Governmental Activities
General government 7,579,355$ 147,693$ --$ --$ (7,431,662)$ --$ (7,431,662)$
Police 6,240,840 -- -- -- (6,240,840) -- (6,240,840)
Fire 7,149,458 165,106 -- -- (6,984,352) -- (6,984,352)
Public works 2,078,721 -- -- 867,197 (1,211,524) -- (1,211,524)
Building, zoning and planning 2,165,717 2,714,085 -- -- 548,368 -- 548,368
Parks and recreation 5,388,588 3,033,636 54,331 -- (2,300,621) -- (2,300,621)
Interest on long-term debt 796,152 -- -- -- (796,152) -- (796,152)
Total Governmental Activities 31,398,831 6,060,520 54,331 867,197 (24,416,783) -- (24,416,783)
Business-type Activities
Stormwater 934,223 908,269 164,176 -- -- 138,222 138,222
Sanitary sewer 1,137,592 -- -- -- -- (1,137,592) (1,137,592)
Solid waste 840,730 652,455 -- -- -- (188,275) (188,275)
Total Business-type Activities 2,912,545 1,560,724 164,176 -- -- (1,187,645) (1,187,645)
Total 34,311,376$ 7,621,244$ 218,507$ 867,197$ (24,416,783) (1,187,645) (25,604,428)
General Revenues
Property taxes 22,249,642 -- 22,249,642
Franchise fees based on gross receipts 603,889 -- 603,889
Utility taxes 2,007,095 -- 2,007,095
Communications services tax 753,385 -- 753,385
Unrestricted intergovernmental revenue 1,955,183 -- 1,955,183
Unrestricted investment earnings 111,484 5,986 117,470
Miscellaneous 81,516 -- 81,516
Transfers (382,883) 382,883 --
Total General Revenues and Transfers 27,379,311 388,869 27,768,180
Change in Net Position 2,962,528 (798,776) 2,163,752
Net Position - Beginning 71,750,863 13,714,888 85,465,751
Prior Period Adjustment (See Note16) -- 996,107 996,107
Net Position - Beginning, Restated 71,750,863 14,710,995 86,461,858
Net Position - Ending 74,713,391$ 13,912,219$ 88,625,610$
VILLAGE OF KEY BISCAYNE, FLORIDA
STATEMENT OF ACTIVITIES
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016
Net (Expense) Revenue and
Program Revenues Changes in Net Position
The accompanying notes are an integral part of these financial statements.
14
Transportation Total
Special Capital Governmental
General Revenue Improvements Funds
Assets
Cash and cash equivalents 6,131,094$ --$ 241,512$ 6,372,606$
Investments 18,509,037 -- 1,501,784 20,010,821
Receivables, net 757,191 201,952 1,282 960,425
Due from other funds 4,505,802 -- -- 4,505,802
Prepaid items 443,084 -- -- 443,084
Restricted cash and cash equivalents -- 935,898 131,236 1,067,134
Restricted investments 264,132 -- 2,016,625 2,280,757
Total Assets 30,610,340$ 1,137,850$ 3,892,439$ 35,640,629$
Liabilities
Accounts payable and accrued liabilities 1,564,846$ --$ 1,850,361$ 3,415,207$
Due to other funds -- 93,846 4,156,659 4,250,505
Payable to pension plan 216,248 -- -- 216,248
Unearned revenue 879,278 -- -- 879,278
Total Liabilities 2,660,372 93,846 6,007,020 8,761,238
Fund Balances (Note 9)
Non-spendable 443,084 -- -- 443,084
Restricted 2,795,695 629,740 -- 3,425,435
Committed 11,606,197 -- -- 11,606,197
Assigned 13,104,992 414,264 -- 13,519,256
Unassigned (Deficit) -- -- (2,114,581) (2,114,581)
Total Fund Balances 27,949,968 1,044,004 (2,114,581) 26,879,391
Total Liabilities and Fund Balances 30,610,340$ 1,137,850$ 3,892,439$
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 77,544,233
Deferred outflows and inflows of resources related to pensions are recorded in the statement of
net position 2,786,663
Long-term liabilities, including bonds payable and accrued interest payable and OPEB obligation,
are not due and payable in the current period and therefore not reported in the funds (Note 2) (28,900,348)
The net pension liability is not due and payable in the current period and
therefore is not reported in the governmental funds (3,596,548)
Net Position of Governmental Activities 74,713,391$
VILLAGE OF KEY BISCAYNE, FLORIDA
BALANCE SHEET
GOVERNMENTAL FUNDS
SEPTEMBER 30, 2016
The accompanying notes are an integral part of these financial statements.
15
Transportation Total
Special Capital Governmental
General Revenue Improvements Funds
Revenues
Property taxes 22,249,642$ --$ --$ 22,249,642$
Utility taxes 2,007,095 -- -- 2,007,095
Communications services tax 753,385 -- -- 753,385
Franchise fees 603,889 -- -- 603,889
Licenses and permits 2,484,872 -- -- 2,484,872
Intergovernmental 1,737,565 1,084,815 -- 2,822,380
Charges for services 3,548,985 -- -- 3,548,985
Interest 102,945 184 8,355 111,484
Grants 54,331 -- -- 54,331
Miscellaneous revenue and other 81,516 -- -- 81,516
Total Revenues 33,624,225 1,084,999 8,355 34,717,579
Expenditures
Current:
General government 3,547,716 31,790 203,525 3,783,031
Fire 6,895,590 -- -- 6,895,590
Police 5,957,079 -- -- 5,957,079
Public works 1,873,594 -- -- 1,873,594
Building, zoning and planning 2,074,777 -- -- 2,074,777
Parks and recreation 4,754,626 -- -- 4,754,626
Capital outlay 128,878 -- 6,809,972 6,938,850
Debt service:
Principal 2,657,430 474,229 162,862 3,294,521
Interest and fiscal charges 693,573 123,681 5,321 822,575
Intergovernmental:
Payment under interlocal agreement -- -- 2,390,330 2,390,330
Total Expenditures 28,583,263 629,700 9,572,010 38,784,973
Excess (deficiency) of revenues
over expenditures 5,040,962 455,299 (9,563,655) (4,067,394)
Other Financing Sources (Uses)
Transfers in -- -- 4,260,203 4,260,203
Transfers out (4,643,086) -- -- (4,643,086)
Total Other Financing Sources (Uses)(4,643,086) -- 4,260,203 (382,883)
Net Change in Fund Balances 397,876 455,299 (5,303,452) (4,450,277)
Fund Balances - Beginning 27,552,092 588,705 3,188,871 31,329,668
Fund Balances - Ending 27,949,968$ 1,044,004$ (2,114,581)$ 26,879,391$
VILLAGE OF KEY BISCAYNE, FLORIDA
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016
The accompanying notes are an integral part of these financial statements.
16
Amounts reported for governmental activities in the statement of activities
(Page 14) are different because:
Net change in fund balances - total governmental funds (Page 16) (4,450,277)$
Governmental funds report capital outlay 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 outlay in the current period.
The details of the difference are as follows:
Cost of assets 6,751,100$
Depreciation expense (2,591,838) 4,159,262
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 3,131,659
Capital lease payments 162,862 3,294,521
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 13,050
Accrued interest 26,423
Net OPEB obligation (126,083)
Net pension liability (2,183,232) (2,269,842)
Changes in the Village's pension deferred outflows and pension deferred
inflows for the current year are not reported in the governmental
funds but are reported in the statement of activities 2,228,864
Change in net position of governmental activities (Page 14)2,962,528$
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, 2016
The accompanying notes are an integral part of these financial statements.
17
Stormwater Sanitary
Utility Sewer Solid
System Construction Waste Totals
Assets
Current Assets
Cash and cash equivalents 300,073$ 160,543$ 14,197$ 474,813$
Accounts receivables, net 195,785 -- 282,618 478,403
Restricted investments 2,014,009 -- -- 2,014,009
Other assets 500 -- -- 500
Total Current Assets 2,510,367 160,543 296,815 2,967,725
Noncurrent Assets
Capital assets being depreciated, net 6,689,981 13,858,716 -- 20,548,697
Total Noncurrent Assets 6,689,981 13,858,716 -- 20,548,697
Total Assets 9,200,348 14,019,259 296,815 23,516,422
Liabilities
Current Liabilities
Accounts payable and accrued liabilities 34,473 11,949 -- 46,422
Due to other funds 140,417 -- 114,880 255,297
Current portion of revolving loans -- 23,999 -- 23,999
Current portion of revenue bonds payable 320,000 322,077 -- 642,077
Total Current Liabilities 494,890 358,025 114,880 967,795
Noncurrent Liabilities
Revenue bonds payable 5,325,000 3,167,923 -- 8,492,923
Revolving loans payable -- 143,485 -- 143,485
Total Noncurrent Liabilities 5,325,000 3,311,408 -- 8,636,408
Total Liabilities 5,819,890 3,669,433 114,880 9,604,203
Net Position
Net investment in capital assets 3,058,990 10,201,232 -- 13,260,222
Unrestricted 321,468 148,594 181,935 651,997
Total Net Position 3,380,458$ 10,349,826$ 181,935$ 13,912,219$
Business-type Activities -
Enterprise Funds
VILLAGE OF KEY BISCAYNE, FLORIDA
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
SEPTEMBER 30, 2016
The accompanying notes are an integral part of these financial statements.
18
Stormwater Sanitary
Utility Sewer Solid
System Construction Waste Totals
Operating Revenues
Charges for services 908,269$ --$ 652,455$ 1,560,724$
Operating Expenses
General and administrative 347,199 -- 840,730 1,187,929
Depreciation 378,556 989,908 -- 1,368,464
Total Operating Expenses 725,755 989,908 840,730 2,556,393
Operating Income (Loss)182,514 (989,908) (188,275) (995,669)
Non-Operating Revenues (Expenses)
Interest income 5,986 -- -- 5,986
Interest expense (208,468) (107,029) -- (315,497)
Other debt service cost -- (40,655) -- (40,655)
Total Non-Operating
Revenues (Expenses)(202,482) (147,684) -- (350,166)
Income (Loss) before Transfers (19,968) (1,137,592) (188,275) (1,345,835)
Capital grant proceeds 164,176 -- -- 164,176
Transfers in -- 382,883 -- 382,883
Change in Net Position 144,208 (754,709) (188,275) (798,776)
Net Position- Beginning,2,240,143 11,104,535 370,210 13,714,888
Prior Period Adjustment (See Note 16) 996,107 -- -- 996,107
Net Position- Beginning, Restated 3,236,250 11,104,535 370,210 14,710,995
Net Position - Ending 3,380,458$ 10,349,826$ 181,935$ 13,912,219$
Business-type Activities -
Enterprise Funds
VILLAGE OF KEY BISCAYNE, FLORIDA
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION
PROPRIETARY FUNDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016
The accompanying notes are an integral part of these financial statements.
19
Stormwater Sanitary
Utility Sewer
System Construction Solid Waste Totals
Cash Flows from Operating Activities
Receipts from customers and users 935,207$ --$ 717,445$ 1,652,652$
Receipts for interfund services 55,986 -- -- 55,986
Payments to suppliers (417,006) -- (876,263) (1,293,269)
Net Cash Provided (Used) by Operating Activities 574,187 -- (158,818) 415,369
Cash Flows from Non-Capital Financing Activities
Transfers in from general fund -- 382,883 -- 382,883
Cash Flows from Capital and Related
Financing Activities
Grant proceeds 164,176 -- -- 164,176
Payments for construction of capital assets (242,117) -- -- (242,117)
Payments on revenue bonds (310,000) -- -- (310,000)
Proceeds from improvement bonds -- 3,490,000 -- 3,490,000
Payments on revolving loans -- (3,569,449) -- (3,569,449)
Interest and fees paid on long term debt (208,468) (147,684) -- (356,152)
Net Cash Used by Capital and Related
Financing Activities (596,409) (227,133) -- (823,542)
Cash Flows from Investing Activities
Purchase of investments (5,986) -- -- (5,986)
Interest received 5,986 -- -- 5,986
Net Cash Provided (Used) by Investing Activities -- -- -- --
Net Increase (Decrease) in Cash and Cash Equivalents (22,222) 155,750 (158,818) (25,290)
Cash and Cash Equivalents - Beginning 322,295 4,793 173,015 500,103
Cash and Cash Equivalents - Ending 300,073$ 160,543$ 14,197$ 474,813$
Reconciliation of Operating Income (Loss) to Net
Cash Provided (Used) by Operating Activities
Operating income (loss) 182,514$ (989,908)$ (188,275)$ (995,669)$
Adjustments to reconcile operating income (loss) to net
cash provided (used) by operating activities:
Depreciation 378,556 989,908 -- 1,368,464
Changes in operating assets and liabilities:
(Increase) decrease in:
Accounts receivable, net 26,964 -- (37,373) (10,409)
Other assets (26) -- -- (26)
Increase (decrease) in:
Accounts payable and accrued liabilities (69,807) -- (48,050) (117,857)
Due to other funds 55,986 -- 114,880 170,866
Total adjustments 391,673 989,908 29,457 1,411,038
Net Cash Provided (Used) by Operating Activities 574,187$ --$ (158,818)$ 415,369$
Business-type Activities -
Enterprise Funds
VILLAGE OF KEY BISCAYNE, FLORIDA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016
The accompanying notes are an integral part of these financial statements.
20
Assets
Investments
Money market funds 460,634$
Common stocks 6,743,423
Mutual funds 20,290,063
Limited partnerships 1,386,150
Real Estate Open-End Fund 1,413,554
Investments held in the Share Plan 1,105,500
Investments held in the DROP Plan 1,192,485
Total Investments 32,591,809
Receivables
Accrued income 10,440
Employer contributions 208,189
Employee contributions 43,963
State supplemental appropriation 34,223
Total Receivables 296,815
Total Assets 32,888,624
Liabilities
Accounts payable and accrued liabilities 16,693
Net Position Restricted for Pension Benefits 32,871,931$
VILLAGE OF KEY BISCAYNE, FLORIDA
STATEMENT OF FIDUCIARY NET POSITION
PENSION TRUST FUND
SEPTEMBER 30, 2016
The accompanying notes are an integral part of these financial statements.
21
Additions
Contributions
Plan members 606,697$
Village (including State) 720,142
Total Contributions 1,326,839
Investment Income
Net appreciation in the fair value of investments 1,442,186
Net appreciation in the fair value of investments (Share and DROP) 146,751
Interest and dividends 1,059,021
Other 5,159
2,653,117
Less: investment expenses (78,553)
Net Investment Income 2,574,564
Total Additions 3,901,403
Deductions
Benefits paid 570,278
Refund of participant contributions 32,769
Administrative expenses 69,369
Total Deductions 672,416
Change in Net Position 3,228,987
Net Position Restricted for Pension Benefits
Beginning of year 29,642,944
End of year 32,871,931$
VILLAGE OF KEY BISCAYNE, FLORIDA
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
PENSION TRUST FUND
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016
The accompanying notes are an integral part of these financial statements.
22
NOTES TO BASIC FINANCIAL STATEMENTS
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016
23
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 or has operational
responsibility. 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, 2016
24
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, 2016
25
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
C. MEASUREMENT FOCUS, BASIS OF ACCOUNTING, AND FINANCIAL STATEMENT
PRESENTATION (CONTINUED)
Property taxes, franchise fees and other taxes, licenses, and interest associated with the
current fiscal period are all considered to be susceptible to accrual and so have been
recognized as revenues of the current fiscal period. Revenues for expenditure driven grants
are recognized when the qualifying expenditures are incurred. All other revenue items are
considered to be measurable and available only when cash is received by the Village.
The Village reports the following major governmental funds:
The General Fund is the Village’s primary operating fund. It accounts for all financial
resources of the general government, except those required to be accounted for in
another fund.
The Transportation Special Revenue Fund accounts for the revenues received from the
transportation surtax and expenditures restricted for related transportation costs.
The Capital Improvement Fund accounts for the acquisition or construction of various
major capital projects.
The Village reports the following major proprietary funds in the basic financial statements:
The Stormwater Utility System Fund accounts for the construction and maintenance of
the Village’s stormwater system.
The Sanitary Sewer Construction Fund accounts for the development and construction
of a municipal sanitary sewer system to the unsewered areas of the community.
The Solid Waste Fund accounts for the provision of solid waste disposal services to
Village residents and businesses.
Additionally, the Village reports the following 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, 2016
26
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
C. MEASUREMENT FOCUS, BASIS OF ACCOUNTING, AND FINANCIAL STATEMENT
PRESENTATION (CONTINUED)
As a general rule, the effect of interfund activity has been eliminated from the government-
wide financial statements. Exceptions to this general rule are payments-in-lieu of taxes and
other charges between the Village’s various utility functions and various other functions.
Elimination of these charges would distort the direct costs and program revenues reported
for the various functions concerned.
Amounts reported as program revenues include 1) charges to customers or applicants for
goods, services, or privileges provided, 2) operating grants and contributions, and 3) capital
grants and contributions. Internally dedicated resources are reported as general revenues
rather than as program revenues. Likewise, general revenues include all taxes.
Proprietary funds distinguish operating revenues and expenses from nonoperating items.
Operating revenues and expenses generally result from providing services and producing
and delivering goods in connection with a proprietary fund’s principal ongoing operations.
The principal operating revenues of the Village’s stormwater utility, solid waste services
and sanitary sewer construction funds are charges to customers for services. Operating
expenses for enterprise funds include the costs of services, administrative expenses, and
depreciation on capital assets. All revenues and expenses not meeting this definition are
reported as nonoperating revenues and expenses.
D. IMPLEMENTATION OF GOVERNMENTAL ACCOUNTING STANDARDS BOARD STATEMENTS
The Village implemented the following GASB Statements during the year ended
September 30, 2016:
GASB Statement No. 72, Fair Value Measurement and Application
This Statement addresses accounting and financial reporting issues related to fair value
measurements of assets and liabilities. The Statement also provides guidance for applying
fair value to certain investments and disclosures related to all fair value measurements. The
adoption of GASB 72 results in increased disclosures related to the fair value measurement
of investments.
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016
27
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
E. ASSETS, LIABILITIES, AND NET POSITION OR EQUITY
1. Deposits and Investments
The Village’s cash and cash equivalents includes cash on hand, certificates of deposit
with original maturities of three months or less from the date of acquisition and a
repurchase agreement. Substantially all other investments, including pension
investments, are recorded at fair value. Money market funds are reported at amortized
cost.
The Village’s and pension plan’s investments are governed by their respective
investment policies.
2. Interfund Receivables and Payables
Activities between funds that are representative of lending/borrowing arrangements
outstanding at the end of the fiscal year are referred to as “due to/from other funds”. Any
residual balances outstanding between the governmental activities and business-type
activities are reported in the government-wide financial statements as “internal balances”.
3. Receivables
Receivables include amounts due from other governments and others for services
provided by the Village. Receivables are recorded and revenues are recognized as
earned or as specific program expenditures/expenses are incurred. Allowances, if any,
for uncollectible receivables are based upon historical trends and the periodic aging of
receivables.
4. Capital Assets
Capital assets, which include property, plant and equipment, intangible and
infrastructure assets (e.g., utility plant, roads, bridges, sidewalks, and similar items), are
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 acquisition value at the date of donation. All infrastructure assets have
been capitalized since inception of the Village.
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016
28
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
E. ASSETS, LIABILITIES, AND NET POSITION OR EQUITY (CONTINUED)
4. Capital Assets (continued)
The costs of normal maintenance and repairs that do not add to the value of the asset or
materially extend asset lives are not capitalized. Major outlays for capital assets and
improvements are capitalized as projects are constructed. Interest incurred during the
construction phase of capital assets of business-type activities is included as part of the
capitalized value of the asset constructed. No such costs were capitalized in 2016.
Intangible assets consist of computer software, which was capitalized as an asset in
prior years, and right of ways. 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
Sanitary sewer system 19
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 an unearned revenue in the government-wide and fund level
financial statements.
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016
29
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
E. ASSETS, LIABILITIES, AND NET POSITION OR EQUITY (CONTINUED)
6. Compensated Absences
It is the Village’s policy to permit employees to accumulate within certain limits,
earned but unused vacation time and sick leave, which will be paid to employees upon
separation from Village service. All vacation and sick leave pay is accrued when
incurred in the government-wide and proprietary fund financial statements. In the
governmental funds, a liability is recorded only for vacation and sick leave payouts for
employee separations that occurred prior to September 30, 2016 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, 2016
30
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
E. ASSETS, LIABILITIES, AND NET POSITION OR EQUITY (CONTINUED)
8. Deferred Outflows/Inflows of Resources
In addition to assets, the statement of net position will sometimes report a separate section
for deferred outflows of resources. This separate financial statement element, deferred
outflows of resources, represents a consumption of net position that applies to a future
period(s) and so will not be recognized as an outflow of resources (expense/expenditure)
until then. The Village reports within its government-wide statement of net position,
deferred outflows related to the Village of Key Biscayne Police Officers and Firefighters
Retirement Plan as a result of the net pension liability associated with the Plan measured
as of September 30, 2015. The amounts paid during fiscal year 2016 to the Plan will be
reflected within the Village’s pension expense and related liability when the net pension
liability is measured for the next fiscal year.
In addition to liabilities, the statement of net position will sometimes report a separate
section for deferred inflows of resources. This separate financial statement element,
deferred inflows of resources, represents an acquisition of net position that applies to a
future period(s) and so will not be recognized as an inflow of resources (revenue) until
that time. Within the government-wide statement of net position the Village reports as
deferred inflows amounts representing the net difference between expected and actual
results, changes in assumptions and projected and actual earnings of its pension plan. The
amounts will be amortized over a five year closed period beginning in the year in which
the difference occurred or over the remaining service lives of all employees, as
applicable.
9. Fund Equity
The Village follows accounting standards for fund balance reporting and governmental
fund type definitions which establish criteria for classifying governmental fund
balances into specifically defined classifications. Classifications are hierarchical and
are based primarily on the extent to which the Village is bound to honor constraints on
the specific purposes for which amounts in the funds may be spent. The Village’s
accounting and finance policies are used to interpret the nature and/or requirements of
the funds and their corresponding assignment of restricted, committed, assigned or
unassigned.
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016
31
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
E. ASSETS, LIABILITIES, AND NET POSITION OR EQUITY (CONTINUED)
9. Fund Equity (continued)
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
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.
Unassigned fund balance. The Village, based on its charter, is not permitted to have
unassigned/unreserved fund balance in the general fund.
See Note 9 for the detail of the amounts included in the various fund balance
classifications.
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016
32
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
E. ASSETS, LIABILITIES, AND NET POSITION OR EQUITY (CONTINUED)
10. Net Position
Net position of the government-wide and proprietary funds are categorized as net
investment in capital assets, restricted or unrestricted. Net investment in capital assets,
is that portion of net position that relates to the Village’s capital assets reduced by
accumulated depreciation and by any outstanding debt 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.
11. Use of Estimates
The preparation of financial statements in conformity with accounting principles
generally accepted in the United States requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements. Estimates also
affect the reported amounts of revenues and expenditures/expenses during the reporting
period. Actual results could differ from those estimates.
12. Flow Assumptions
Net Position Flow Assumption
Sometimes the Village will fund outlays for a particular purpose from both restricted
and unrestricted resources. In order to calculate the amounts to report as restricted net
position and unrestricted net position in the government-wide financial statements, a
flow assumption must be made about the order in which the resources are considered to
be applied. It is the Village’s policy to consider restricted net position to have been
depleted before unrestricted net position is applied.
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016
33
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
E. ASSETS, LIABILITIES, AND NET POSITION OR EQUITY (CONTINUED)
12. Flow Assumptions (continued)
Fund Balance Flow Assumption
Sometimes the Village will fund outlays for a particular purpose from both restricted
and unrestricted resources (the total of committed and assigned fund balance). In order
to calculate the amounts to report as restricted, committed and assigned 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.
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 and accrued interest payable and
OPEB obligation, are not due and payable in the current period and therefore are not
reported in the funds. The details of this $28,900,348 difference, excluding the net
pension liability which is separately disclosed, are as follows:
Bonds payable 24,969,498$
Capital leases payable 148,314
Compensated absences 2,586,224
Accrued Interest payable 159,598
Net OPEB obligation 1,036,714
28,900,348$
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016
34
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 0.30% to 1.20% and with maturities ranging from 180 days to 1,095 days totaling
$18,899,041 which are presented as investments in the accompanying financial statements.
INVESTMENTS
The Village’s investment policy follows the requirements of Florida Statutes Chapter
218.415, and attempts to promote, in order of priority, safety of principal, adequate
liquidity, and maximization of total return. The Village’s investment policy authorizes
investments in direct obligations of the U.S. Government, its agencies or instrumentalities.
The Village is also authorized to invest in SEC registered money market mutual funds,
insured or fully collateralized deposits, repurchase agreements secured by direct obligations
of the U.S. Government, and authorized intergovernmental investment pools. The
investment policy defined in the statutes attempts to promote, through state assistance, the
maximization of net interest earnings on invested surplus funds of local units of
governments while limiting the risk to which the funds are exposed. The Village maintains
a separate investment policy for its pension plan.
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016
35
NOTE 3 – DEPOSITS AND INVESTMENTS (CONTINUED)
INVESTMENTS – VILLAGE
As of September 30, 2016, the Village had the following fixed income investments
measured at amortized cost, with the corresponding maturities in its portfolio:
Investments Value 1-5
Repurchase Agreements 3,128,405$ 3,128,405$
(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.
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 $3.1 million investment
in repurchase agreements is held by the investment’s counterparty, not in the name of the
Village. The Village’s investment policy does not have a limit on holding of securities by
counterparties.
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016
36
NOTE 3 – DEPOSITS AND INVESTMENTS (CONTINUED)
INVESTMENTS – PENSION PLAN
For the Village’s pension plan, Florida statutes and the Plan’s investment policy authorize the
Trustees to invest funds in various investments. A Master Custodian Agreement is maintained
whereby the investment securities are held in the Plan’s name by a financial institution acting
as the Plan’s agent. The current target allocation of these investments are as follows:
Authorized Investments Target % Allowable Range
Large cap core equity 5.0%4% - 8%
Large cap value equity 10.0%6% - 12%
Large cap growth equity 10.0% 6% - 12%
Mid-cap value equity 3.5% 2% - 5%
Mid-cap growth equity 3.5% 2% - 5%
Small-cap value equity 1.5% 1% - 3%
Small-cap growth equity 1.5% 1% - 3%
International equity 12.0% 5% - 25%
Real estate investment trust 2.0% 0% - 4%
Private real estate 10.0% 5% - 12%
High yield 3.0% 0% - 5%
Fixed income bonds 33.0% 25% - 64%
Master limited partnerships 5.0%2% - 7%
Total 100.0%
As of September 30, 2016, the Village’s Pension Plan had the following fixed income
investments with the corresponding maturities in its portfolio:
Fair Less
Investments Value Than 1 1-5 6-10 10+
Bond Mutual Funds 5,403,838$ --$ 2,553,465$ 1,661,851$ 1,188,522$
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.
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016
37
NOTE 3 – DEPOSITS AND INVESTMENTS (CONTINUED)
INVESTMENTS – PENSION PLAN (CONTINUED)
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, 2016, the value of each position held in
the Plan’s portfolio comprised less than 5% of Plan net position.
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.
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016
38
NOTE 3 – DEPOSITS AND INVESTMENTS (CONTINUED)
FAIR VALUE HIERARCHY
The Plan categorizes its fair value measurements within the fair value hierarchy established
by generally accepted accounting principles. The fair value hierarchy categorizes the inputs to
valuation techniques used to measure fair value into three levels based on the extent to which
inputs used in measuring fair value are observable in the market.
Level 1 - Investments' fair values based on prices quoted in active markets for identical
assets.
Level 2 - Investments' fair values based on observable inputs for the assets either directly or
indirectly, other than those considered Level 1 inputs, which may include quoted
prices for identical assets in markets that are not considered to be active, and
quoted prices of similar assets in active or inactive markets.
Level 3 - Investments' fair values based upon unobservable inputs.
The following is a description of the fair value techniques for the Plan's investments. Level 1
and Level 2 prices are obtained from various pricing sources by the Plan's custodian bank:
Debt and equity securities classified in Level 1 of the fair value hierarchy are valued using
prices quoted in active markets for those securities. This includes common stock, foreign
stock, and mutual fund equities.
The Plan has investments in alternative asset classes including limited partnerships and a core
real estate fund, which hold a variety of investment vehicles that do not have readily available
market quotations. These investments are measured at net asset value based on their
proportionate share of the value of the investments as determined by the fund managers and
are valued according to methodologies, which include pricing models, discounted cash flow
models and similar techniques.
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016
39
NOTE 3 – DEPOSITS AND INVESTMENTS (CONTINUED)
FAIR VALUE HIERARCHY (CONTINUED)
The following is a summary of the fair value hierarchy of the Plan investments as of
September 30, 2016:
Quoted Prices
in Active Significant
Markets for Other Significant
Identical Observable Unobservable
Assets Inputs Inputs
9/30/2016 (Level 1) (Level 2) (Level 3)
Investments by Fair Value Level
Equity securities
Common stock 6,743,423$ 6,743,423$ --$ --$
International mutual fund 3,186,528 3,186,528 -- --
Fixed income mutual funds 5,403,838 5,403,838 -- --
Mutual fund equities 11,699,697 11,699,697 -- --
Mutual funds (DROP)1,192,485 1,192,485 -- --
Mutual funds (Share)1,105,500 1,105,500 -- --
Total investments at fair value 29,331,471 29,331,471 -- --
Investment Measured at Net Asset Value (NAV)*
General limited partnership 799,188
Master limited partnership 586,962
Real estate open-end fund 1,413,554
Total investments measured at NAV 2,799,704
Money market funds (exempt)460,634
Total investments 32,591,809$
Fair Value Measurements Using
* As required by GAAP, certain investments that are measured at net asset value have not
been classified in the fair value hierarchy. The fair value amounts presented in this table
are intended to permit reconciliation of the fair value hierarchy to the total investment
line item in the statement of fiduciary net position.
The following table summarizes investments for which fair value is measured using the net
asset value per share practical expedient, including their related unfunded commitments and
redemption restrictions.
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016
40
NOTE 3 – DEPOSITS AND INVESTMENTS (CONTINUED)
FAIR VALUE HIERARCHY (CONTINUED)
Investment Measured at NAV Redemption Redemption
Fair Unfunded Frequency (if Notice
Value Commitments Currently Eligible) Period
General limited partnership (1)799,188$ --$ Monthly 5 days
Master limited partnership (2)586,962 -- Daily 3 days
Real estate open-end fund (3)1,413,554 -- Quarterly N/A
2,799,704$
1.General Partnership - Mid Cap Growth. The Portfolio invests in a combination of securities of small-cap, mid-cap
and large-cap companies. The Portfolio typically invests most of its assets in equity securities of U.S. companies, but
may invest in foreign securities and American Depositary Receipts, including emerging market securities.
2.Master Limited Partnership. The Fund invests primarily in master limited partnerships as well as domestic
common stocks or similar equity securities of high quality, financially secure companies listed on principal
exchanges.
3.Real Estate Open-End Fund. The Trust Fund is an open-end, commingled real estate fund established as a means
for the collective investment in real estate properties and loans by funds of retirement, pension, profit sharing, and
other organizations that are exempt from federal income taxes.
NOTE 4 – RECEIVABLES
Receivables as of September 30, 2016 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 88,628$ --$ --$ 195,785$ 314,020$ --$ 598,433$
Contributions -- -- -- -- -- 286,375 286,375
Intergovernmental 663,551 201,952 -- -- -- -- 865,503
Other 5,012 -- 1,282 -- -- 10,440 16,734
Gross receivables 757,191 201,952 1,282 195,785 314,020 296,815 1,767,045
Less: Allowance for
uncollectibles -- -- -- -- (31,402) -- (31,402)
Net Total Receivables 757,191$ 201,952$ 1,282$ 195,785$ 282,618$ 296,815$ 1,735,643$
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016
41
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 fiscal year ended September 30, 2016 was 3.00.
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, 2016, there were no material delinquent taxes.
NOTE 6 – INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS
The composition of interfund balances as of September 30, 2016 is as follows:
Due from/to other funds:
Receivable Fund Payable Fund Amount
General Transportation Special Revenue 93,846$
Capital Improvements 4,156,659
Stormwater Utility Systems 140,417
Solid Waste 114,880
4,505,802$
The outstanding balances between funds result mainly from the time lag between the dates that
(1) interfund goods and services are provided or reimbursable expenditures occur, (2)
transactions are recorded in the accounting system, and (3) payments between funds are made.
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016
42
NOTE 6 – INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS (CONTINUED)
Interfund transfers:
Transfers Out Transfer In Amount
General Fund Capital Improvements 4,260,203$
General Fund Sanitary Sewer Construction 382,883
4,643,086$
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 fiscal ended September 30, 2016 was as follows:
Beginning Ending
Balance Increases Decreases Balance
Governmental Activities
Capital Assets, Not Being Depreciated
Land 21,833,837$ 2,108,142$ --$ 23,941,979$
Construction in progress 6,478,399 3,161,183 (2,147,100) 7,492,482
Total Capital Assets, Not Being Depreciated 28,312,236 5,269,325 (2,147,100) 31,434,461
Capital Assets, Being Depreciated
Buildings 25,439,572 262,358 -- 25,701,930
Improvements other than buildings 32,617,545 2,763,074 -- 35,380,619
Furniture, fixtures and equipment 10,350,389 603,443 -- 10,953,832
Total Capital Assets, Being Depreciated 68,407,506 3,628,875 -- 72,036,381
Less: Accumulated Depreciation for
Buildings (6,413,576) (519,542) -- (6,933,118)
Improvements other than buildings (9,026,808) (1,330,230) -- (10,357,038)
Furniture, fixtures and equipment (7,894,387) (742,066) -- (8,636,453)
Total Accumulated Depreciation (23,334,771) (2,591,838) -- (25,926,609)
Total Capital Assets, Being Depreciated, Net 45,072,735 1,037,037 -- 46,109,772
Governmental Activities Capital Assets, Net 73,384,971$ 6,306,362$ (2,147,100)$ 77,544,233$
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016
43
NOTE 7 – CAPITAL ASSETS (CONTINUED)
Beginning Ending
Balance* Increases Decreases Balance
Business-type Activities
Capital Assets, Not Being Depreciated
Construction in progress 996,107$ --$ (996,107)$ --$
Total Capital Assets, Not Being Depreciated 996,107 -- (996,107) --
Capital Assets, Being Depreciated
Stormwater utility system 10,911,184 1,238,224 -- 12,149,408
Sanitary Sewer system 18,808,259 -- -- 18,808,259
Total Capital Assets, Being Depreciated 29,719,443 1,238,224 -- 30,957,667
Less: Accumulated Depreciation for
Stormwater utility system (5,080,871) (378,556) -- (5,459,427)
Sanitary Sewer system (3,959,635) (989,908) -- (4,949,543)
Total Accumulated Depreciation (9,040,506) (1,368,464) -- (10,408,970)
Total Capital Assets, Being Depreciated, Net 20,678,937 (130,240) -- 20,548,697
Business-type Activities Capital Assets, Net 21,675,044$ (130,240)$ (996,107)$ 20,548,697$
* Beginning balance includes $996,107 of construction in progress previously not reported at
September 30, 2015. Refer to Prior Period Adjustment footnote number 16.
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016
44
NOTE 7 – CAPITAL ASSETS (CONTINUED)
Depreciation expense was charged as functions/programs of the primary government as
follows:
Governmental Activities
General government 1,105,211$
Police 273,525
Fire 283,073
Public works 205,127
Building, zoning and planning 90,940
Parks 633,962
Total Depreciation Expense - Governmental Activities 2,591,838$
Business-type Activities
Stormwater Utility 378,556$
Sanitary Sewer 989,908
Total Depreciation Expense - Business-Type Activities 1,368,464$
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016
45
NOTE 8 – LONG-TERM DEBT
The following is a summary of changes in long-term liabilities of the Village for
governmental activities for the fiscal year ended September 30, 2016:
Beginning Ending Due Within
Balance Additions Reductions Balance One Year
Governmental Activities
Bonds Payable
Land acquisition and capital improvement
revenue bonds, Series 1999 3,705,000$ --$ (670,000)$ 3,035,000$ 705,000$
Capital improvement revenue refunding
bonds, Series 2011A 4,365,000 -- (690,000) 3,675,000 705,000
Capital improvement revenue refunding
bonds, Series 2011B 4,835,000 -- (605,000) 4,230,000 635,000
Capital improvement and land acquisition
revenue refunding bonds, Series 2011 1,270,000 -- (170,000) 1,100,000 160,000
Transportation tax revenue refunding
bonds, Series 2011 2,085,658 -- (192,046) 1,893,612 196,736
Road improvement revenue bonds,
Series 2006 1,958,441 -- (282,183) 1,676,258 289,205
School improvement revenue bonds,
Series 2012 5,307,058 -- (272,430) 5,034,628 276,993
School improvement revenue bonds,
Series 2014 4,575,000 -- (250,000) 4,325,000 260,000
Total Bonds Payable 28,101,157 -- (3,131,659) 24,969,498 3,227,934
Other Liabilities
Capital leases 311,176 -- (162,862) 148,314 82,035
Compensated absences 2,599,274 1,270,015 (1,283,065) 2,586,224 646,556
Net OPEB obligation 910,631 129,728 (3,645) 1,036,714 --
Net pension liability 1,413,316 2,751,048 (567,816) 3,596,548 --
Total Other Liabilities 5,234,397 4,150,791 (2,017,388) 7,367,800 728,591
Governmental Activities Long-
Term Liabilities 33,335,554$ 4,150,791$ (5,149,047)$ 32,337,298$ 3,956,525$
Long-term obligations related to governmental activities are generally liquidated from the
general fund.
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016
46
NOTE 8 – LONG-TERM DEBT (CONTINUED)
LAND ACQUISITION AND CAPITAL IMPROVEMENT REVENUE BONDS, SERIES 1999
On July 23, 1999, the Village issued $10,000,000 Land Acquisition and Capital Improvement
Revenue Bonds, Series 1999, the proceeds of which were used for the acquisition of property
and financing of the construction of the Civic Center project. The bonds mature on July 23,
2019 with final payment due on December 1, 2019. The Village has pledged non-ad valorem
revenues to secure payment of the principal and interest on the bonds. The bonds are due in
annual principal installments. Interest accrues at 4.715% per annum.
Debt service requirements to maturity are as follows:
Principal Interest Total
Fiscal Year Ending September 30
2017 705,000$ 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
3,035,000$ 294,806$ 3,329,806$
CAPITAL IMPROVEMENT REVENUE REFUNDING BONDS, SERIES 2011A
On June 13, 2011, the Village issued $6,890,000 of Capital Improvement Revenue Refunding
Bonds, Series 2011A for the purpose of refunding the Village’s Capital Improvement
Revenue Bonds, Series 2000. The bonds mature on December 1, 2020. The Village has
pledged non-ad valorem revenues to secure payment of the principal and interest on the
bonds. The bonds are due in annual principal installments on each December 1, commencing
December 1, 2011. Interest accrues at 2.31% per annum.
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016
47
NOTE 8 – LONG-TERM DEBT (CONTINUED)
CAPITAL IMPROVEMENT REVENUE REFUNDING BONDS, SERIES 2011A (CONTINUED)
Debt service requirements to maturity are as follows:
Principal Interest Total
Fiscal Year Ending September 30
2017 705,000$ 76,750$ 781,750$
2018 715,000 60,349 775,349
2019 735,000 43,601 778,601
2020 750,000 26,450 776,450
2021 770,000 8,894 778,894
3,675,000$ 216,044$ 3,891,044$
CAPITAL IMPROVEMENTS REVENUE REFUNDING BONDS, SERIES 2011B
On August 1, 2011, the Village issued $7,130,000 of Capital Improvement Revenue
Refunding Bonds, Series 2011B for the purpose of refunding the Village’s Capital
Improvement Revenue Bonds, Series 2002. The bonds mature on November 1, 2022. The
Village has pledged non-ad valorem revenues to secure payment of the principal and
interest on the bonds. The bonds bear interest on the outstanding principal balance from its
date of issuance payable quarterly on the first day of each February, May, August and
November commencing November 1, 2011, at an interest rate equal to 2.41% per annum.
Debt service to maturity is as follows:
Principal Interest Total
Fiscal Year Ending September 30
2017 635,000$ 95,496$ 730,496$
2018 650,000 80,102 730,102
2019 665,000 64,347 729,347
2020 675,000 48,290 723,290
2021 680,000 31,933 711,933
2022-2023 925,000 16,237 941,237
4,230,000$ 336,405$ 4,566,405$
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016
48
NOTE 8 – LONG-TERM DEBT (CONTINUED)
CAPITAL IMPROVEMENT AND LAND ACQUISITION REVENUE REFUNDING BONDS, SERIES
2011
On August 1, 2011, the Village issued the $1,865,000 Capital Improvement and Land
Acquisition Revenue Refunding Bonds, Series 2011 for the purpose of refunding the
Capital Improvement and Land Acquisition Revenue Bonds, Series 2004. The Village has
pledged non-ad valorem revenues to secure payment of the principal and interest on the
bonds. The bonds mature on November 1, 2022. The bonds bear interest on the
outstanding principal balance from its date of issuance payable quarterly on the first day of
each February, May, August and November, commencing November 1, 2011, at an interest
rate equal to 2.41% per annum.
Debt service requirements to maturity are as follows:
Principal Interest Total
Fiscal Year Ending September 30
2017 160,000$ 25,064$ 185,064$
2018 170,000 21,057 191,057
2019 170,000 16,960 186,960
2020 175,000 12,773 187,773
2021 195,000 8,375 203,375
2022-2023 230,000 4,218 234,218
1,100,000$ 88,447$ 1,188,447$
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 $489,679 and $214,904, respectively. The bonds mature on July 1, 2025.
The bonds bear interest on the outstanding principal balance from its date of issuance
payable quarterly on each January 1, April 1, July 1 and October 1 commencing January 1,
2012, at an interest rate equal to 2.42% per annum.
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016
49
NOTE 8 – LONG-TERM DEBT (CONTINUED)
TRANSPORTATION TAX REVENUE REFUNDING BONDS, SERIES 2011 (CONTINUED)
Debt service requirements to maturity are as follows:
Principal Interest Total
Fiscal Year Ending September 30
2017 196,736$ 44,049$ 240,785$
2018 201,540 39,245 240,785
2019 206,462 34,323 240,785
2020 211,505 29,281 240,786
2021 216,669 24,116 240,785
2022-2025 860,700 42,244 902,944
1,893,612$ 213,258$ 2,106,870$
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 $1,873,673. For the
current year, debt service and pledged revenues were $353,768 and $365,000, respectively.
The bonds are due in quarterly principal installments. Interest accrues at 4.05% per annum.
Debt service requirements to maturity are as follows:
Principal Interest Total
Fiscal Year Ending September 30
2017 289,205$ 63,857$ 353,062$
2018 300,353 51,976 352,329
2019 311,930 39,637 351,567
2020 323,954 26,823 350,777
2021 336,440 13,515 349,955
2022 114,376 1,607 115,983
1,676,258$ 197,415$ 1,873,673$
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016
50
NOTE 8 – LONG-TERM DEBT (CONTINUED)
SCHOOL IMPROVEMENT REVENUE BONDS, SERIES 2012
On October 24, 2012, the Village issued $5,575,000 of School Improvement Revenue
Bonds, Series 2012 for the purpose of providing a portion of the financing of a permanent
secondary educational facility and recreational fields owned and operated by the School
Board of Miami-Dade County for Village residents located at the Mast Academy campus
as well as necessary renovations of the Key Biscayne K-8 Center, financing architectural,
engineering, environmental, legal, and other planning costs related thereto, and paying cost
of issuance of the bonds. The bonds mature on October 1, 2032. The bonds bear interest
on the outstanding principal balance from its date of issuance payable semiannually on
each April 1 and October 1 (the "interest payment dates") commencing April 1, 2013, at an
interest rate equal to 3.35% per annum. The bonds require the Village to appropriate in its
annual budget, from non-ad valorem revenues amounts sufficient to cover debt service.
Debt service requirements to maturity are as follows:
Principal Interest Total
Fiscal Year Ending September 30
2017 276,993$ 168,660$ 445,653$
2018 281,633 159,380 441,013
2019 286,350 149,946 436,296
2020 291,146 14,353 305,499
2021 296,023 130,600 426,623
2022-2026 1,556,172 500,884 2,057,056
2027-2031 1,690,941 231,346 1,922,287
2032-2033 355,370 11,905 367,275
5,034,628$ 1,367,074$ 6,401,702$
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016
51
NOTE 8 – LONG-TERM DEBT (CONTINUED)
SCHOOL IMPROVEMENT REVENUE BONDS, SERIES 2014
On July 1, 2014, the Village issued $4,575,000 of School Improvement Revenue Bonds,
Series 2014 for the purpose of providing an additional portion of the financing of a
permanent secondary educational facility and recreational fields owned and operated by the
School Board of Miami-Dade County for Village residents located at the Mast Academy
campus as well as necessary renovations of the Key Biscayne K-8 Center, financing
architectural, engineering, environmental, legal, and other planning costs related thereto,
and paying cost of issuance of the bonds. The bonds mature on October 1, 2029. The
bonds bear interest on the outstanding principal balance from its date of issuance payable
semi-annually on each April 1 and October 1 (the "interest payment dates") commencing
October 1, 2014, at an interest rate equal to 2.76% per annum. The bonds require the
Village to appropriate in its annual budget, from non-ad valorem revenues amounts
sufficient to cover debt service.
Debt service requirements to maturity are as follows:
Principal Interest Total
Fiscal Year Ending September 30
2017 260,000$ 119,370$ 379,370$
2018 265,000 112,194 377,194
2019 270,000 104,880 374,880
2020 280,000 97,248 377,248
2021 285,000 89,700 374,700
2022-2026 1,560,000 325,404 1,885,404
2027-2030 1,405,000 98,118 1,503,118
4,325,000$ 946,914$ 5,271,914$
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.
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016
52
NOTE 8 – LONG-TERM DEBT (CONTINUED)
CAPITAL LEASES (CONTINUED)
Assets
Machinery and equipment 947,025$
Accumulated depreciation (482,525)
Carrying Value 464,500$
Future minimum lease payments and the present value of net minimum lease payments as
of September 30, 2016 are as follows:
Fiscal Year Ending September 30
2017 84,792$
2018 34,133
2019 34,133
Total minimum lease payments 153,058
Less: amount representing interest 4,744
148,314$
The following is a summary of changes in long-term liabilities of the Village for business-
type activities for the fiscal year ended September 30, 2016:
Beginning Ending Due Within
Balance Additions Reductions Balance One Year
Business-type Activities
Bonds and Loans Payable
Stormwater utility refunding and
improvement revenue bond, Series 2013 5,955,000$ --$ (310,000)$ 5,645,000$ 320,000$
Sewer improvement revenue
bonds, Series 2016 -- 3,490,000 -- 3,490,000 322,077
Revolving loan, 1996 191,925 -- (24,441) 167,484 23,999
Revolving loan, 2009 3,545,008 -- (3,545,008) -- --
Total Bonds and Loans Payable 9,691,933 3,490,000 (3,879,449) 9,302,484 666,076
Business-type Activities
Long-Term Liabilities 9,691,933$ 3,490,000$ (3,879,449)$ 9,302,484$ 666,076$
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016
53
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. 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 $908,269 and debt service was $518,468 for the fiscal year ended
September 30, 2016. The bonds mature on October 1, 2029. The bonds bear interest on
the outstanding principal balance from their date of issuance payable annually on each
October 1 commencing October 1, 2014, at an interest rate equal to 3.35% per annum.
Debt service requirements to maturity are as follows:
Principal Interest Total
Fiscal Year Ending September 30
2017 320,000$ 189,108$ 509,108$
2018 335,000 178,388 513,388
2019 345,000 167,165 512,165
2020 355,000 155,608 510,608
2021 370,000 143,715 513,715
2022-2026 2,030,000 525,250 2,555,250
2027-2030 1,890,000 160,800 2,050,800
5,645,000$ 1,520,034$ 7,165,034$
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 2016 was $28,134 and state revenue sharing was
$306,790. The loan is payable in semi-annual payments over 20 years beginning on April 15,
2003 at an interest rate of 2.56% per annum. The loan matures on October 15, 2022.
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016
54
NOTE 8 – LONG-TERM DEBT (CONTINUED)
STATE REVOLVING FUND LOAN, 1996 (CONTINUED)
Debt service requirements to maturity are as follows:
Principal Interest Total
Fiscal Year Ending September 30
2017 23,999$ 4,135$ 28,134$
2018 24,617 3,517 28,134
2019 25,252 2,882 28,134
2020 25,902 2,232 28,134
2021 26,570 1,565 28,135
2022-2023 41,144 1,058 42,202
167,484$ 15,389$ 182,873$
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 loan
was paid in full during fiscal year 2016, through the issuance of the Sewer Improvement
Revenue Bonds, Series 2016.
SEWER IMPROVEMENT REVENUE BONDS, SERIES 2016
On June 29, 2016, the Village issued $3,490,000 of Sewer Improvement Revenue Bonds,
Series 2016 for the purpose of refinancing the State Revolving Fund Loan, 2009. The
bonds require the Village to appropriate in its annual budget, from non-ad valorem revenue
amounts sufficient to cover debt service. The bonds mature on February 15, 2030. The
bonds bear interest on the outstanding principal balance from its date of issuance payable
quarterly on each February 15 and August 15, commencing August 15, 2016, at an interest
rate equal to 1.97% per annum.
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016
55
NOTE 8 – LONG-TERM DEBT (CONTINUED)
SEWER IMPROVEMENT REVENUE BONDS, SERIES 2016 (CONTINUED)
Debt service requirements to maturity are as follows:
Principal Interest Total
Fiscal Year Ending September 30
2017 322,077$ 74,471$ 396,548$
2018 225,856 61,301 287,157
2019 230,327 56,830 287,157
2020 234,887 52,270 287,157
2021 239,537 47,620 287,157
2022-2026 1,270,723 165,063 1,435,786
2027-2030 966,593 38,457 1,005,050
3,490,000$ 496,012$ 3,986,012$
NOTE 9 – FUND BALANCE CLASSIFICATIONS
As of September 30, 2016, 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 443,084$
Restricted
Building inspections 2,259,562
Fire code violations 298,573
Fire grant revenue (UASI) 37,543
Law enforcement seizures 200,017
2,795,695$
Subtotal (Forward)3,238,779$
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016
56
NOTE 9 – FUND BALANCE CLASSIFICATIONS (CONTINUED)
Subtotal (Forward)3,238,779$
Committed
Emergencies 4,000,000$
Fire rescue transport fees 1,624,339
Labor negotiations 90,000
Open space land trust 5,891,858
11,606,197
Assigned
Compensated absences 646,556
Working capital (surplus) 12,458,436
13,104,992
Total Fund Balance - General Fund 27,949,968$
Unassigned (Deficit)
Capital improvement plan (2,114,581)$
Total Fund Balance - Capital Improvements (2,114,581)$
Restricted
Transportation surtax 629,740$
Assigned 414,264
Total Fund Balance - Transportation Special Revenue 1,044,004$
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016
57
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 the first
Plan, which is available to general employees, the Village contributes 12% and the employees
contribute 6%. Under the second Plan, which is available only to the Village Manager, the
Village contributes 12% and employee contributions are not required. Under the third plan,
which is available only to sworn or certified police officers and firefighters, there are
currently no employee or employer contributions. Original participants still have vested
funds deposited in the third Plan.
Total employer contributions into the general employees and the Village Manager’s plan were
approximately $398,000 and $23,000, respectively. Amendments to the Plans 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 PERS is administered by a five member Board of Trustees, comprised
of two members appointed by Village Council, one member elected by/from the police officer
members, one member elected by/from the firefighter members and the fifth member is
chosen by the majority of the four Trustees and formally appointed by the Village Council.
The latest available actuarial valuation is as of October 1, 2015. The PERS does not issue a
publicly available stand-alone financial report for the Plan. The Plan received a favorable IRS
determination letter dated September 12, 2014. Amendments to the Plan must be authorized
by the Village Council.
Under this Plan, all full-time firefighters and police officers employed by the Village are
eligible to participate. Prior to March 11, 2014 for firefighters and August 26, 2014 for police
officers, the monthly retirement benefit was equal to 3% of the average final compensation for
each year of service.
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016
58
NOTE 11 – DEFINED BENEFIT PENSION PLAN (CONTINUED)
PLAN DESCRIPTION (CONTINUED)
As of March 11, 2014, the monthly retirement benefit for firefighters is equal to 3% of
average final compensation for the first fifteen years of credited service; 4% of average final
compensation for each year of credit service in excess of fifteen years; and 2.75% of average
final compensation earned after March 10, 2014.
As of August 26, 2014, the monthly retirement benefit for police officers is equal to 3% of
average final compensation for each year of credited service earned before August 26, 2014
and 2.75% of average final compensation for each year of credit service earned after August
26, 2014. 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.
Prior to March 11, 2014 for firefighters and August 26, 2014 for police officers, vested
employees could 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. As of March 11,
2014 for firefighters and August 26, 2014 for police officers, vested employees may retire at
the earlier of age 55 and the completion of ten years of credited service or the age of 52 and
the completion of 25 years of credited service or when their age (computed in full months)
plus credited service (computed in full months) equals 900 months (i.e. 75 years).
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 refunds are recorded when paid.
Based on the October 1, 2015 (date of the latest actuarial valuation), Plan membership
consisted of the following:
Inactive plan members and beneficiaries currently receiving benefits 30
Inactive plan members entitled but not yet receiving benefits 4
Active plan members 58
Total Members 92
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016
59
NOTE 11 – DEFINED BENEFIT PENSION PLAN (CONTINUED)
FUNDING POLICY
The participant contribution rate is fixed by ordinance at 10.5%.
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. Effective March 11, 2014 for firefighter participants and August 26, 2014 for police
officer participants, the Village’s annual contribution into the Plan shall not exceed 14% of
the Plan’s covered payroll. As such, any required excess as determined by the actuarial
valuation is covered by additional participant contributions. 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.
The Village’s (including the State) contribution rate was 16.05% of covered payroll for the
fiscal year ended September 30, 2016 which was determined by the October 1, 2014 actuarial
valuation.
SHARE PLAN
In fiscal year 2009, the Village created a Share Plan for firefighters. Prior to March 11, 2014,
the Plan was 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.
Effective March 11, 2014, the Share Plan was closed, and as such, all premium tax revenues
received pursuant to Chapter 175 are transferred into the PERS to reduce the Village’s
contribution. 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, 2016 is $1,105,500, 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, 2016 there were eleven
(11) participants in the Plan. The balance in the Plan at September 30, 2016 is $1,192,485,
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, 2016
60
NOTE 12 –NET PENSION LIABILITY OF THE VILLAGE
As of September 30, 2016, the Village reported a net pension liability (NPL) of $3,596,548,
which was measured as of September 30, 2015 (GASB 68 measurement date). In
accordance with GASB 67, information related to the PERS as of September 30, 2016 has
also been disclosed.
2016 2015
Total pension liability 35,667,966$ 33,239,492$
Plan fiduciary net position (32,871,931) (29,642,944)
Net pension liability 2,796,035$ 3,596,548$
Plan fiduciary net position as a percentage
of total pension liability 92.16% 89.18%
SIGNIFICANT ACTUARIAL ASSUMPTIONS
The total pension liability of the Village was determined using the following actuarial
assumptions:
Measurement Date: September 30, 2016 September 30, 2015
Actuarial Valuation: October 1, 2014 October 1, 2014
Interest rates:
Single discount rate 7.80% 7.85%
Inflation rate 3.50% 3.50%
Salary Increases 3.5% to 9.25% depending on age,
including inflation
3.5% to 9.25% depending on age,
including inflation
Mortality table 40% RP-2000 Combined Healthy
Participant Mortality Table for males
and females with mortality
improvement projected to all future
years after 2000 using Scale BB;
60% 1983 Group Annuity Mortality
Table for males and females
30% RP-2000 Combined Healthy
Participant Mortality Table for males
and females with mortality
improvement projected to all future
years after 2000 using Scale BB; 70%
1983 Group Annuity Mortality Table
for males and females.
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016
61
NOTE 12 –NET PENSION LIABILITY OF THE VILLAGE (CONTINUED)
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, 2016 and 2015 are summarized in the following table:
Asset Class 2016 2015
Domestic equity 8.10% 8.10%
International equity 3.10% 2.70%
Fixed income 4.10% 4.40%
Real estate 5.00% 5.80%
Cash 0.00% 1.10%
RATE OF RETURN
For the fiscal years ended September 30, 2016 and 2015, the annual money-weighted rate
of return on Plan investments, net of investment expense, was 9.03% and 0.10%,
respectively. 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
For the fiscal years ended September 30, 2016 and 2015, a single discount rate of 7.80%
and 7.85%, respectively were used to measure the total pension liability. This single
discount rate was based on the expected rate of return on Plan investments. 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 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, 2016
62
NOTE 12 –NET PENSION LIABILITY OF THE VILLAGE (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 (asset) to changes in
the discount rate. In particular, the table presents the Village’s net pension liability (asset),
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
As of 1% Discount Rate 1%
September 30, Decrease Assumption Increase
6.80% 7.80% 8.80%
2016 6,525,062$ 2,796,035$ (356,130)$
6.85% 7.85% 8.85%
2015 7,101,786$ 3,596,548$ 628,451$
PENSION EXPENSE AND DEFERRED OUTFLOWS OF RESOURCES AND DEFERRED INFLOWS OF
RESOURCES RELATED TO PENSIONS
For the fiscal year ended September 30, 2016, based on a September 30, 2015 measurement
date, the Village recognized pension expense of approximately $734,000 related to the
Plan. In addition, the Village reported deferred outflows of resources and deferred inflows
of resources related to pensions from the following sources:
Deferred
Outflows
Deferred
Inflows
Description of Resources of Resources
Village contribution subsequent to year end $ 774,412 $ --
Differences between expected and actual experience 216,013 --
Change of assumptions 285,262 60,808
Net difference between projected and actual
earnings on pension plan investments 1,929,530 357,746
Total $ 3,205,217 $ 418,554
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016
63
NOTE 12 –NET PENSION LIABILITY OF THE VILLAGE (CONTINUED)
PENSION EXPENSE AND DEFERRED OUTFLOWS OF RESOURCES AND DEFERRED INFLOWS OF
RESOURCES RELATED TO PENSIONS (CONTINUED)
The deferred outflow of resources, resulting from the Village’s contributions to the Plan
subsequent to the measurement date of September 30, 2015 in the amount of $774,412 will
be recognized as a reduction of the Village’s net pension liability in the fiscal year ended
September 30, 2017. Beginning in fiscal year 2015, the remaining amounts related to
differences between projected and actual earnings on pension plan investments are
recognized over 5 years and the amounts related to changes in assumptions and differences
between expected and actual experience are recognized over 5.4 years (average remaining
service lives of all employees) as follows:
Fiscal Year Ending September 30 Amount
2017 475,124$
2018 475,124
2019 475,122
2020 566,979
2021 19,902
2,012,251$
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.
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016
64
NOTE 13 – OTHER POST-EMPLOYMENT BENEFITS (CONTINUED)
FUNDING POLICY AND ANNUAL OPEB COST
The Village does not directly make a contribution to the plan on behalf of retirees. Retirees
and their beneficiaries pay the same group rates as are charged to the Village for active
employees by its healthcare provider. However, the Village’s actuaries, in their actuarial
valuation, calculate an offset to the cost of these benefits as an employer contribution, based
upon an implicit rate subsidy. This offset equals the total age-adjusted costs paid by the
Village or its active employees for coverage of the retirees and their dependents for the year
net of the retiree’s own payments for the year. The annual other post-employment benefit
(OPEB) cost is calculated based on the annual required contribution of the employer, an
amount actuarially determined in accordance with GASB pronouncements. The annual
required contribution represents a level of funding that, if paid on an ongoing basis, is
projected to cover normal cost each year and to amortize any unfunded actuarial liabilities
over a period not to exceed thirty years.
The annual OPEB cost for the Village for the current year and the related information is as
follows:
Required Contribution Rates
Employer Pay-as-you-go
Plan members N/A
Normal Cost 108,387$
Amortization of Unfunded Actuarial Accrued Liability 27,412
Annual Required Contribution (ARC) 135,799
Interest of Net OPEB Obligation 31,872
Adjustment to ARC (37,943)
Annual OPEB Cost 129,728
Contributions Made (3,645)
Increase in Net OPEB Obligation 126,083
Net OPEB Obligation, Beginning of Year 910,631
Net OPEB Obligation, End of Year 1,036,714$
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016
65
NOTE 13 – OTHER POST-EMPLOYMENT BENEFITS (CONTINUED)
THREE-YEAR TREND INFORMATION
The annual OPEB cost, the percentage of annual OPEB cost contributed to the plan and
the net OPEB obligation is as follows:
Fiscal Year Ended 9/30/2016 9/30/2015 9/30/2014
Annual OPEB Cost 129,728$ 206,689$ 193,851$
Percentage of OPEB Cost Contributed 2.8% 11.2% 7.5%
Net OPEB Obligation 1,036,714 910,631 726,997
FUNDED STATUS AND FUNDING PROGRESS
The funded status of the plan as of October 1, 2015, 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
--$ 646,649$ 646,649$ 0.0% 7,421,258$ 8.71%
The actuarial valuation for the calculation of OPEB involves estimates of the value of
reported amounts and assumptions about the probability of events in the future. Amounts
determined regarding the funded status of the plan and the annual required contributions
of the employer are subject to continual revision as actual results are compared to past
expectations and new estimates are made about the future. The required schedule of
funding progress presented as required supplementary information is designed to provide
multi-year trend information to show whether the actuarial value of plan assets is
increasing or decreasing over time relative to the actuarial accrued liability for benefits.
However, the Village has not contributed assets to the plan at this time.
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016
66
NOTE 13 – OTHER POST-EMPLOYMENT BENEFITS (CONTINUED)
ACTUARIAL METHODS AND ASSUMPTIONS
Projections of benefits are based on the substantive plan (the plan as understood by the
employer and plan members) and include the types of benefits in force at the valuation
date and the pattern of sharing benefit costs between the Village and the plan members to
that point. Actuarial calculations reflect a long-term perspective and employ methods
and assumptions that are designed to reduce short-term volatility in actuarial accrued
liabilities and the actuarial value of assets. Significant methods and assumptions were as
follows:
Valuation date October 1, 2015
Actuarial cost method Entry Age, Normal Cost Method
Amortization method Level % of Payroll, Closed (remaining amortization 24
years)
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):
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.
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016
67
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.
NOTE 16 – PRIOR PERIOD ADJUSTMENT – CAPITAL ASSETS
A prior period adjustment in the amount of $996,107 was recorded as a correction of an
error in the Stormwater Utility System Fund. The amount is composed of construction in
progress related invoices for service periods related to fiscal year 2015. Such invoices were
improperly recorded as expenses in 2015. The adjustment properly capitalizes the amounts
identified and restated beginning net position from $2,240,143 to $3,236,250.
REQUIRED SUPPLEMENTARY INFORMATION
Adjusted Variance
Actual Amounts with Final
Amounts Prior Year on a Budget -
on a GAAP Reserves/ Budgetary Positive
Original Final Basis Adjustments Basis (Negative)
Revenues
Property taxes 22,006,983$ 22,006,983$ 22,249,642$ --$ 22,249,642$ 242,659$
Utility taxes/communications
services tax 2,679,538 2,679,538 2,760,480 -- 2,760,480 80,942
Franchise fees 595,000 595,000 603,889 -- 603,889 8,889
Licenses and permits 1,889,000 1,889,000 2,484,872 -- 2,484,872 595,872
Intergovernmental 1,252,941 1,252,941 1,737,565 363,071 2,100,636 847,695
Charges for services 3,313,850 3,313,850 3,548,985 -- 3,548,985 235,135
Interest 30,000 30,000 102,945 -- 102,945 72,945
Grants -- -- 54,331 -- 54,331 54,331
Miscellaneous income 52,000 52,000 81,516 -- 81,516 29,516
Total Revenues 31,819,312 31,819,312 33,624,225 363,071 33,987,296 2,167,984
Expenditures
Current:
General government:
Elected officials 235,101 235,101 261,049 (25,948) 235,101 --
Village Clerk 358,464 358,464 325,312 -- 325,312 33,152
Administration 1,759,769 1,759,769 1,889,719 (129,950) 1,759,769 --
Village Attorney 710,000 710,000 1,072,473 (362,473) 710,000 --
Total general government 3,063,334 3,063,334 3,548,553 (518,371) 3,030,182 33,152
Public safety:
Police 5,860,839 5,860,839 6,026,004 (137,178) 5,888,826 (27,987)
Fire 6,837,417 6,837,417 6,917,376 (225,893) 6,691,483 145,934
Total public safety 12,698,256 12,698,256 12,943,380 (363,071) 12,580,309 117,947
Public works 1,746,550 1,746,550 1,886,011 (139,461) 1,746,550 --
Building, zoning and planning 1,981,007 1,981,007 2,079,176 (98,169) 1,981,007 --
Parks and recreation:
Parks 1,348,852 1,348,852 1,216,875 -- 1,216,875 131,977
Community center 2,371,614 2,371,614 2,743,696 (250,000) 2,493,696 (122,082)
Athletic division 654,071 654,071 814,569 -- 814,569 (160,498)
Total parks and recreation 4,374,537 4,374,537 4,775,140 (250,000) 4,525,140 (150,603)
Debt service:
Principal 2,883,801 2,883,801 2,657,430 -- 2,657,430 226,371
Interest and fiscal charges 811,624 811,624 693,573 -- 693,573 118,051
Total Expenditures 27,559,109 27,559,109 28,583,263 (1,369,072) 27,214,191 344,918
Excess (Deficiency) of
Revenues over Expenditures 4,260,203 4,260,203 5,040,962 (1,006,001) 6,773,105 2,512,902
Other Financing Sources (Uses)
Appropriation of prior years':
Reserves - working capital -- -- -- 907,832 907,832 907,832
Reserves - building division -- -- -- 98,169 98,169 98,169
Reserves - comp. absences -- -- -- -- -- --
Transfers in -- -- -- -- -- --
Transfers out (4,260,203) (4,260,203) (4,643,086) -- (4,643,086) (382,883)
Total Other Financing Sources (Uses)(4,260,203) (4,260,203) (4,643,086) 1,006,001 (3,637,085) (623,118)
Net Change in Fund Balances --$ --$ 397,876$ --$ 3,136,020$ (3,136,020)$
Budgeted Amounts
VILLAGE OF KEY BISCAYNE, FLORIDA
BUDGETARY COMPARISON SCHEDULE
GENERAL FUND
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016
REQUIRED SUPPLEMENTARY INFORMATION
See notes to budgetary comparison schedule.
68
VILLAGE OF KEY BISCAYNE, FLORIDA
REQUIRED SUPPLEMENTARY INFORMATION
NOTES TO BUDGETARY COMPARISON SCHEDULE
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016
69
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 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,
2016, 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, 2016.
NOTE 2 – RECONCILIATION OF GAAP BASIS TO BUDGETARY BASIS
Revenue Reported on a GAAP Basis 33,624,225$
Defined Benefit Pension plan contributions provided
by the State of Florida, not budgeted by the Village 363,071
Revenues on a Budgetary Basis 33,987,296$
Expenditures Reported on a GAAP Basis 28,583,263$
Defined Benefit Pension plan contributions provided
by the State of Florida, not budgeted by the Village 363,071
Adjustments for prior year reserves - Community Center 250,000
Litigation - Special Council 362,473
Payment for compensated absences 393,528
Expenditures on a Budgetary Basis 27,214,191$
Actuarial UAAL
Actuarial Accrued Unfunded As % of
Actuarial 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%
10/1/2015 -- 646,649 646,649 0.0% 7,421,258 8.71%
VILLAGE OF KEY BISCAYNE, FLORIDA
REQUIRED SUPPLEMENTARY INFORMATION
OTHER POST-EMPLOYMENT BENEFITS
70
2016 2015 2014
Total Pension Liability
Service cost 892,483$ 905,151$ 1,325,960$
Interest 2,655,690 2,423,657 2,505,808
Benefit changes -- -- (4,253,914)
Difference between actual and expected experience (678,816) 413,544 343,081
Assumption changes 368,874 351,602 (96,578)
Benefit payments (570,278) (653,498) (447,084)
Refunds (32,769) (8,759) (99,486)
Other (release of excess state reserves) (206,710) (297,383) --
Net Change in Total Pension Liability 2,428,474 3,134,314 (722,213)
Total Pension Liability - Beginning 33,239,492 30,105,178 31,210,657
Total Pension Liability - Ending (a)*35,667,966$ 33,239,492$ 30,488,444$
Plan Fiduciary Net Position
Contributions - employer (from Village) 322,848$ 383,181$ 844,637$
Contributions - employer (from State) 397,294 456,253 475,709
Contributions - employee (including buyback contributions) 606,697 579,425 639,478
Net investment income 2,574,564 (103,179) 2,632,785
Benefit payments (570,278) (653,498) (447,084)
Refunds (32,769) (8,759) (99,486)
Administrative expense (69,369) (85,607) (86,629)
Net Change in Plan Fiduciary Net Position 3,228,987 567,816 3,959,410
Plan Fiduciary Net Position - Beginning 29,642,944 29,075,128 25,115,718
Plan Fiduciary Net Position - Ending (b)32,871,931$ 29,642,944$ 29,075,128$
Net Pension Liability - Ending (a) - (b)2,796,035$ 3,596,548$ 1,413,316$
Plan Fiduciary Net Position as a Percentage of Total Pension
Liability 92.16% 89.18% 95.36%
Covered Employee Payroll 5,778,063$ 5,518,334$ 6,053,762$
Net Pension Liability as a Percentage of Covered Employee
Payroll 48.39% 65.17% 23.35%
SCHEDULE OF CHANGES IN THE VILLAGE'S NET PENSION LIABILITY
PENSION TRUST FUND
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.
VILLAGE OF KEY BISCAYNE, FLORIDA
REQUIRED SUPPLEMENTARY INFORMATION
PENSION TRUST FUND
September 30,
AND RELATED RATIOS
71
Actual
Contribution
Fiscal Actuarially Contribution as a % of
Year Ended 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%
2015 934,532 839,434 95,098 * 5,518,334 15.21%
2016 926,852 720,142 206,710 * 5,778,063 12.46%
Valuation Date
Notes
Actuarial Cost Method
Amortization Method
Remaining Amortization Period
Asset Valuation Method
Inflation
Salary Increases
Investment Rate of Return
Retirement Age
Mortality
Methods and Assumptions Used to Determine Contribution Rate for the fiscal year ending
September 30, 2016:
5-year smoothed market
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.
3.50%
3.50% to 9.25% depending on service
7.85%
Experience-based table of rates that are specific to the type of
eligibility condition
30% RP-2000 Combined Healthy Participant Mortality Table
for males and females with mortality improvement projected
to all future years after 2000 using Scale BB; 70% 1983
Group Annuity Mortality Table for males and females.
* The contribution deficiencies for the fiscal years ending September 30, 2015 and September 30,
2016 were made up by the release of excess state contribution reserve funds and the use of prepaid
employer contributions.
Actuarially determined contributions are calculated as of
October 1, which is 24 months prior to the end of the year in
which contributions are reported.
Entry Age Normal
Level Dollar, Closed
October 1, 2014
VILLAGE OF KEY BISCAYNE, FLORIDA
REQUIRED SUPPLEMENTARY INFORMATION
PENSION TRUST FUND
SCHEDULE OF VILLAGE CONTRIBUTIONS
11 years
72
2016 2015 2014
Annual Money-Weighted Rate of Return,
Net of Investment Expense 9.03% 0.10% 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.
September 30,
73
STATISTICAL SECTION
Contents Page
Financial Trends
These schedules contain trend information to help the reader understand how the
Village's financial performance and well-being have changed over time. These
schedules include:
74-78
Revenue Capacity
These schedules contain information to help the reader assess the Village's most
significant local revenue source, the property tax.
79-83
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.
84-87
Demographic and Economic Information
These schedules offer demographic and economic indicators to help the reader
understand the environment within which the Village's financial activities take
place.
88-90
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.
91-92
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.
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Governmental activities
Net investment in capital assets 31,422,358$ 36,139,953$ 38,482,243$ 41,377,118$ 43,428,433$ 44,373,229$ 43,714,666$ 51,426,773$ 54,854,783$ 51,961,356$
Restricted 261,813 284,639 308,813 -- 1,170,247 500,137 3,138,445 3,455,654 2,405,158 3,425,433
Unrestricted 8,453,390 10,924,001 15,055,000 16,540,883 16,491,371 19,598,291 16,968,354 6,195,833 14,490,922 19,326,602
Total governmental activities net position 40,137,561 47,348,593 53,846,056 57,918,001 61,090,051 64,471,657 63,821,465 61,078,260 71,750,863 74,713,391
Business-type activities
Net investment in capital assets 2,505,881 10,174,333 15,383,765 16,680,711 16,970,470 16,462,270 15,884,955 13,788,293 12,995,027 13,260,222
Unrestricted 432,133 (2,209,685) (346,721) 1,116,111 1,133,034 706,195 439,166 1,477,416 719,861 651,997
Total business-type activities net position 2,938,014 7,964,648 15,037,044 17,796,822 18,103,504 17,168,465 16,324,121 15,265,709 13,714,888 13,912,219
Total government
Net investment in capital assets 33,928,239 46,314,286 53,866,008 58,057,829 60,398,903 60,835,499 59,599,621 65,215,066 67,849,810 65,221,578
Restricted 261,813 284,639 308,813 -- 1,170,247 500,137 3,138,445 3,455,654 2,405,158 3,425,433
Unrestricted 8,885,523 8,714,316 14,708,279 17,656,994 17,624,405 20,304,486 17,407,520 7,673,249 15,210,783 19,978,599
Total Government Net Position 43,075,575$ 55,313,241$ 68,883,100$ 75,714,823$ 79,193,555$ 81,640,122$ 80,145,586$ 76,343,969$ 85,465,751$ 88,625,610$
VILLAGE OF KEY BISCAYNE, FLORIDA
NET POSITION BY COMPONENT
LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
74
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Expenses
Governmental activities:
General government 3,781,396$ 3,213,273$ 2,868,728$ 2,751,697$ 2,830,412$ 3,379,954$ 9,344,606$ 8,526,705$ 4,100,859$ 7,579,355$
Police 4,651,660 5,272,383 5,258,243 5,360,548 6,853,329 5,818,890 6,065,025 6,362,729 4,103,543 6,240,840
Fire 5,257,789 6,399,665 6,523,753 6,762,228 5,685,278 7,299,320 7,024,661 7,823,159 5,345,543 7,149,458
Public works 1,589,444 2,046,776 1,914,119 1,614,443 1,719,526 1,736,803 2,221,905 1,798,163 1,823,897 2,078,721
Building, zoning and planning 1,447,968 1,529,272 1,540,507 1,611,119 1,714,303 1,808,574 2,306,446 2,153,954 2,075,416 2,165,717
Parks and recreation 3,077,624 3,633,233 4,090,555 4,134,830 4,232,147 4,201,578 4,175,408 4,623,868 4,850,623 5,388,588
Interest on long-term debt 1,505,253 1,436,481 1,447,387 1,366,437 1,217,874 843,965 935,242 962,167 816,313 796,152
Total governmental activities 21,311,134 23,531,083 23,643,292 23,601,302 24,252,869 25,089,084 32,073,293 32,250,745 23,116,194 31,398,831
Business-type activities:
Stormwater 693,135 911,500 779,856 603,262 815,402 689,287 715,836 1,109,510 1,783,865 934,223
Sanitary sewer 9,454 9,046 144,922 39,178 197,474 1,234,279 1,133,209 1,126,907 1,120,166 1,137,592
Solid waste 571,246 619,823 618,155 585,927 546,534 563,995 574,686 583,083 582,943 840,730
Total business-type activities 1,273,835 1,540,369 1,542,933 1,228,367 1,559,410 2,487,561 2,423,731 2,819,500 3,486,974 2,912,545
Total government expenses 22,584,969$ 25,071,452$ 25,186,225$ 24,829,669$ 25,812,279$ 27,576,645$ 34,497,024$ 35,070,245$ 26,603,168$ 34,311,376$
Program revenues
Governmental activities:
Charges for services:
General government 1,389,163$ 1,320,004$ 237,315$ 181,992$ 169,307$ 177,574$ 140,587$ 160,800$ 157,868$ 147,693$
Police 21,385 14,203 38,181 (1,479) 1,763 375 1,455 4,700 20,011 -
Fire 40,144 146,588 136,433 158,975 190,989 145,544 188,169 210,678 193,442 165,106
Building, zoning and planning 193,391 133,104 1,173,440 1,247,715 2,184,127 2,347,092 2,744,711 2,256,151 3,136,916 2,714,085
Parks and recreation 1,416,707 1,620,787 1,957,747 2,107,397 2,287,983 2,614,034 2,622,554 2,805,925 2,710,396 3,033,636
Operating grants and contributions 799,493 251,180 157,912 163,752 77,638 6,629 426,917 97,970 85,315 54,331
Capital grants and contributions -- -- 1,709,481 959,360 730,492 783,886 803,620 826,282 7,854,679 867,197
Total governmental activities program revenues 3,860,283 3,485,866 5,410,509 4,817,712 5,642,299 6,075,134 6,928,013 6,362,506 14,158,627 6,982,048
Business-type activities:
Charges for services:
Stormwater 509,571 499,101 491,314 484,932 979,865 935,352 958,114 907,324 939,798 908,269
Solid waste 520,650 530,803 635,580 615,480 597,431 588,449 592,480 591,079 600,688 652,455
Capital grants and contributions:
Stormwater -- -- 331,319 172,164 -- -- -- -- 47,872 --
Sanitary sewer -- 5,460,763 6,971,311 2,501,287 258,500 -- -- -- -- --
Operating grants and contributions:
Stormwater -- -- -- -- -- -- -- -- -- 164,176
Total business-type activities program revenues 1,030,221 6,490,667 8,429,524 3,773,863 1,835,796 1,523,801 1,550,594 1,498,403 1,588,358 1,724,900
Total program revenues 4,890,504$ 9,976,533$ 13,840,033$ 8,591,575$ 7,478,095$ 7,598,935$ 8,478,607$ 7,860,909$ 15,746,985$ 8,706,948$
(Continued)
VILLAGE OF KEY BISCAYNE, FLORIDA
LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
CHANGES IN NET POSITION
75
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Net (expense) revenue
Governmental activities (17,450,851)$ (20,045,217)$ (18,232,783)$ (18,783,590)$ (18,610,570)$ (19,013,950)$ (25,145,280)$ (25,888,239)$ (8,957,567)$ (24,416,783)$
Business-type activities (243,614) 4,950,298 6,886,591 2,545,496 276,386 (963,760) (873,137) (1,321,097) (1,898,616) (1,187,645)
Total net expense (17,694,465)$ (15,094,919)$ (11,346,192)$ (16,238,094)$ (18,334,184)$ (19,977,710)$ (26,018,417)$ (27,209,336)$ (10,856,183)$ (25,604,428)$
General revenues
Governmental activities:
Taxes:
Property taxes 18,667,979$ 20,051,239$ 19,769,976$ 17,832,874$ 16,646,040$ 16,985,109$ 17,499,835$ 17,857,711$ 19,353,288$ 22,249,642$
Utility taxes 1,467,392 1,534,379 1,555,748 1,655,032 1,705,238 1,727,651 1,789,909 1,967,061 1,979,733 2,007,095
Franchise fees 1,113,194 1,064,666 992,997 1,006,415 735,519 846,252 780,245 574,639 595,196 603,889
Communications services tax 763,801 1,226,423 1,091,734 1,029,087 964,324 946,399 1,010,931 917,449 862,165 753,385
Intergovernmental 1,000,265 2,265,243 1,348,324 1,391,242 1,575,314 1,667,597 1,772,208 1,902,177 1,901,774 1,955,183
Investment earnings 641,115 346,531 44,737 21,346 37,254 37,985 16,722 34,991 47,004 111,484
Miscellaneous -- -- 91,232 131,847 147,065 212,697 1,627,479 148,140 139,196 81,516
Transfers (28,133) (28,134) (164,502) (212,308) (28,134) (28,134) (28,134) (257,134) (343,884) (382,883)
Total governmental activities 23,625,613 26,460,347 24,730,246 22,855,535 21,782,620 22,395,556 24,469,195 23,145,034 24,534,472 27,379,311
Business-type activities:
Investment earnings 49,086 48,202 21,303 1,974 2,162 587 659 5,551 3,911 5,986
Transfers 28,133 28,134 164,502 212,308 28,134 28,134 28,134 257,134 343,884 382,883
Total business-type activities 77,219 76,336 185,805 214,282 30,296 28,721 28,793 262,685 347,795 388,869
Total general revenues 23,702,832$ 26,536,683$ 24,916,051$ 23,069,817$ 21,812,916$ 22,424,277$ 24,497,988$ 23,407,719$ 24,882,267$ 27,768,180$
Change in Net Position
Governmental activities 6,174,762$ 6,415,130$ 6,497,463$ 4,071,945$ 3,172,050$ 3,381,606$ (676,085)$ (2,743,205)$ 15,576,905$ 2,962,528$
Business-type activities (166,395) 5,026,634 7,072,396 2,759,778 306,682 (935,039) (844,344) (1,058,412) (1,550,821) (798,776)
Total change in Net Position 6,008,367$ 11,441,764$ 13,569,859$ 6,831,723$ 3,478,732$ 2,446,567$ (1,520,429)$ (3,801,617)$ 14,026,084$ 2,163,752$
CHANGES IN NET POSITION
(Continued)
LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
VILLAGE OF KEY BISCAYNE, FLORIDA
76
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
General fund
Non-spendable --$ --$ --$ --$ 305,730$ 303,918$ 272,330$ 353,823$ 268,176$ 443,084$
Restricted -- -- -- -- 1,170,247 1,054,070 1,466,704 1,574,817 1,875,857 2,795,695
Committed -- -- -- -- 12,039,224 4,858,269 5,065,439 5,214,654 13,538,053 11,606,197
Assigned -- -- -- -- 4,028,870 8,178,544 10,852,640 11,756,540 11,870,006 13,104,992
Reserved 9,875,416 11,298,178 12,318,533 15,286,689 -- -- -- -- -- --
Unreserved -- -- -- -- -- -- -- -- -- --
Total General Fund 9,875,416 11,298,178 12,318,533 15,286,689 17,544,071 14,394,801 17,657,113 18,899,834 27,552,092 27,949,968
All other governmental funds
Committed -- -- -- -- 3,665,259 6,060,286 4,240,104 4,371,204 3,188,871 629,740
Unassigned -- -- -- -- (1,077,816) (690,343) (278,254) (314,462) -- --
Restricted -- -- -- -- -- 573,701 1,671,741 470,334 529,301 --
Assigned 59,404 414,264
Unreserved, reported in:
Special revenue fund (2,482,196) (2,701,623) (1,501,382) (1,299,432) -- -- -- -- -- --
Capital projects funds 2,954,753 4,783,222 6,875,361 5,195,557 -- -- -- -- -- (2,114,581)
Total Other Governmental Funds 472,557 2,081,599 5,373,979 3,896,125 2,587,443 5,943,644 5,633,591 4,527,076 3,777,576 (1,070,577)
Total Governmental Funds 10,347,973$ 13,379,777$ 17,692,512$ 19,182,814$ 20,131,514$ 20,338,445$ 23,290,704$ 23,426,911$ 31,329,668$ 26,879,391$
VILLAGE OF KEY BISCAYNE, FLORIDA
FUND BALANCES OF GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
Note: The Village implemented GASB Statement No. 54 for the fiscal year ended September 30, 2011
77
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Revenues
Ad valorem taxes 18,667,979$ 20,051,239$ 19,769,976$ 17,832,874$ 16,646,040$ 16,985,109$ 17,499,835$ 17,857,711$ 19,353,288$ 22,249,642$
Franchise fees 1,113,194 1,064,666 992,997 1,006,415 735,519 846,252 780,245 574,639 595,196 603,889
Utility taxes/communication services tax 2,231,193 1,534,379 2,834,749 2,731,766 2,717,209 2,709,498 2,800,840 2,884,510 2,841,898 2,760,480
Licenses and permits 1,298,133 1,240,290 1,188,297 1,329,823 1,948,820 2,383,500 2,542,103 2,090,916 3,076,414 2,484,872
Intergovernmental revenue 1,593,718 3,189,251 3,047,844 2,089,015 2,305,806 2,451,483 2,575,828 2,728,459 2,756,453 2,822,380
Charges for services 1,762,657 1,994,396 2,354,819 2,364,777 2,885,349 2,901,119 3,155,373 3,347,338 3,142,219 3,548,985
Grants 206,040 251,180 167,873 425,339 77,638 6,629 426,917 97,970 85,315 54,331
Investment income 632,355 338,528 44,737 21,346 37,254 37,985 16,722 34,991 47,004 111,484
Contributions -- -- -- -- -- -- -- -- 7,000,000 --
Miscellaneous 8,762 8,003 26,232 131,848 147,065 212,697 1,627,479 148,140 139,196 81,516
Total revenues 27,514,031 29,671,932 30,427,524 27,933,203 27,500,700 28,534,272 31,425,342 29,764,674 39,036,983 34,717,579
Expenditures
Current:
General government 2,543,134 2,329,647 2,266,763 1,934,341 1,929,153 2,066,501 2,255,188 2,468,672 2,884,740 3,783,031
Fire 5,122,699 5,744,775 6,407,770 6,584,784 6,557,442 7,056,020 7,014,382 7,574,576 6,726,873 6,895,590
Police 4,590,962 4,863,765 5,116,158 5,093,601 5,312,977 5,453,853 5,750,069 6,018,581 6,077,940 5,957,079
Public works 1,587,460 1,720,689 1,914,119 1,608,193 1,711,868 1,727,203 1,826,782 1,732,554 1,752,803 1,873,594
Building, planning and zoning 1,455,193 1,513,019 1,540,507 1,602,651 1,702,541 1,777,349 1,842,175 2,064,687 1,982,159 2,074,777
Parks and recreation 2,830,020 3,367,638 3,730,084 3,717,935 3,799,408 3,764,570 4,092,835 4,170,205 4,258,750 4,754,626
Capital outlay 6,830,844 4,743,796 1,537,930 2,349,935 1,963,219 3,793,179 2,294,068 1,769,634 3,334,821 6,938,850
Intergovernmental:
Payment under interlocal agreement -- -- -- -- -- -- -- 4,574,703 8,545 2,390,330
Debt service:
Principal 1,418,401 1,679,991 2,051,307 2,140,684 2,348,506 2,436,139 2,531,116 2,716,772 2,920,699 3,294,521
Interest and other fiscal charges 1,556,396 1,444,576 1,450,649 1,386,913 1,520,433 828,393 913,409 875,949 973,012 822,575
Total expenditures 27,935,109 27,407,896 26,015,287 26,419,037 26,845,547 28,903,207 28,520,024 33,966,333 30,920,342 38,784,973
Excess (deficiency) of revenues over expenditures (421,078) 2,264,036 4,412,237 1,514,166 655,153 (368,935) 2,905,318 (4,201,659) 8,116,641 (4,067,394)
Other financing sources (uses)
Transfers in 6,697,854 4,533,094 3,236,194 -- -- 5,816,222 -- 904,093 1,855,623 4,260,203
Transfers out (6,725,988) (4,561,228) (3,400,696) (212,308) (28,134) (5,844,356) (28,134) (1,161,227) (2,199,507) (4,643,086)
Bonds issued 4,000,000 -- -- -- -- -- 5,575,075 4,575,000 -- --
Payment for interlocal agreement -- -- -- -- -- -- (5,500,000) -- -- --
Refunding bonds issued -- -- -- -- 18,693,952 -- -- -- -- --
Debt service - principal -- -- -- -- (18,693,952) -- -- -- -- --
Proceeds from sale of capital assets -- -- 65,000 -- -- -- -- -- -- --
Capital lease proceeds -- -- -- 188,444 321,681 604,000 -- 20,000 130,000 --
Total other financing sources (uses)3,971,866 (28,134) (99,502) (23,864) 293,547 575,866 46,941 4,337,866 (213,884) (382,883)
Net Change in Fund Balances 3,550,788$ 2,235,902$ 4,312,735$ 1,490,302$ 948,700$ 206,931$ 2,952,259$ 136,207$ 7,902,757$ (4,450,277)$
Debt service as a percentage
of non-capital expenditures 14% 14% 14% 15% 16% 13% 13% 11% 14% 13%
VILLAGE OF KEY BISCAYNE, FLORIDA
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
78
Fiscal Ad Valorem Franchise Utility Inter- Communications
Year Taxes Taxes Taxes governmental Services Tax Total
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
2015 19,353,288 595,196 1,979,733 2,756,453 862,165 25,546,835
2016 22,249,642 603,889 2,007,095 2,822,380 753,385 28,436,391
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.
79
Total
Fiscal Year Total Net Direct
Ended Residential Commercial Personal Assessed Tax
September 30, Property Property Property Value Rate
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
2015 6,306,477,954 353,222,413 37,956,862 6,697,657,229 3.000
2016 7,291,699,676 393,809,175 36,239,673 7,721,748,524 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
80
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
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
2015 2014 3.000 - 3.000 4.667 0.450 5.117 7.413 0.199 7.612 0.032 0.146 0.993 16.900
2016 2015 3.000 - 3.000 4.667 0.400 5.067 7.138 0.184 7.322 0.032 0.136 0.979 16.536
(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 $1,000 of assessed value.
Sources: Village of Key Biscayne Finance Department and Miami-Dade County Property Appraiser's Office.
81
Percent of Percent of
Total Total
Net Village Net Net Village Net
Assessed Assessed Assessed Assessed
Taxpayer Value Rank Value Taxpayer Value Rank Value
GB Hotel Partners LTD 64,500,000$ 1 0.84% Sonesta Beach Resort, LP 44,568,400$ 1 1.04%
Red Dragon's Sands LTD 25,808,748 2 0.33% United Reat Estate Ventures 42,064,691 2 0.98%
Galleria of Key Biscayne Inc 23,205,985 3 0.30% GB Hotel Partners LTD 34,700,000 3 0.81%
Edgardo Defortuna 19,311,292 4 0.25% 260 Cape Florida LLC 12,663,250 4 0.30%
United Real Est Ventures Inc 18,624,111 5 0.24% Oceanclub Community Assoc 12,500,000 5 0.29%
Vali Key LLC 14,300,000 6 0.19% Claudio & Yvonne Alvarez 9,202,584 6 0.21%
Consultatio Key Biscayne LLC 14,300,000 7 0.19% Aurelio & Berta Fernandez 7,813,741 7 0.18%
260 Cape Florida LLC 14,297,167 8 0.19% Garflo Investments 7,361,525 8 0.17%
Key Biscayne Presbyterian Church 14,000,000 9 0.18% Roger & Susana Khouri 6,979,000 9 0.16%
JLK Global Fund US Inc 13,500,000 10 0.17% CSM Key Biscayne Equities L 6,438,569 10 0.15%
221,847,303$ 2.87%184,291,760$ 4.30%
2016 2007
VILLAGE OF KEY BISCAYNE, FLORIDA
PRINCIPAL PROPERTY TAXPAYERS
CURRENT YEAR AND NINE YEARS AGO
82
Total Taxes
Fiscal Year Levied for Collections in
Ended Fiscal Percent Subsequent Percent
September 30, Year Amount of Levy Year's Amount of Levy
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 19,686,090 17,857,711 90.71% -- 17,857,711 90.71%
2015 20,092,972 19,353,288 96.32% -- 19,353,288 96.32%
2016 23,165,246 22,249,642 96.05% -- 22,249,642 96.05%
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
83
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
2007 --$ 31,695,102$ --$ 5,200,000$ --$ 36,895,102$ 0.25% 3,511$
2008 -- 33,987,811 5,000,000 5,200,000 339,919 44,527,730 0.22% 4,238
2009 -- 32,040,160 -- 4,835,000 2,387,341 39,262,501 0.25% 3,737
2010 -- 29,950,678 -- 4,450,000 4,695,812 39,096,490 0.26% 3,167
2011 -- 27,757,222 -- 4,130,000 4,497,388 36,384,610 0.29% 2,948
2012 -- 25,543,132 -- 3,655,000 4,254,706 33,452,838 0.33% 2,710
2013 -- 28,759,034 -- 3,170,000 4,148,944 36,077,978 0.31% 2,923
2014 -- 30,897,605 -- 6,255,000 3,946,308 41,098,913 0.28% 3,329
2015 -- 28,101,157 -- 5,955,000 3,736,933 37,793,090 0.32% 2,961
2016 -- 24,969,498 -- 9,135,000 167,484 34,271,982 0.43% 2,659
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 83 on the demographic schedule
Business-type
Activities
84
VILLAGE OF KEY BISCAYNE, FLORIDA
RATIOS OF GENERAL BONDED DEBT OUTSTANDING
LAST TEN FISCAL YEARS
The Village does not have general obligation debt.
85
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 24,969,498$ 100.00% 24,969,498$
Overlapping debt:
Miami-Dade County 1,597,781,000 2.42% 38,650,693
Miami-Dade County School Board 499,129,000 1.11% 5,554,061
Subtotal, Overlapping Debt 44,204,754
Total Direct and Overlapping Debt 69,174,252$
(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.
2016
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.
86
Fiscal Year Non-
Ended Ad Valorem
September 30, Revenues Principal Interest Coverage
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
2015 19,683,695 2,920,699 973,012 5.06
2016 12,467,937 3,294,521 822,575 3.03
VILLAGE OF KEY BISCAYNE, FLORIDA
PLEDGED REVENUE COVERAGE
LAST TEN FISCAL YEARS
Debt Service
Source: Village of Key Biscayne Finance Department.
87
Median Per Capita
Household Personal Unemployment
Year Population (1) Income (1) Income (1) Rate (2)
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%
2015 12,762 119,241 48,910 6.0%
2016 12,888 145,723 50,377 5.2%
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
88
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
Winn Dixie Stores, Inc. 250 2 not known 250 3 not known
Village of Key Biscayne 116 3 not known 100 4 not known
All remaining employers are of an extremely small number
Total 1,866
Source: Village of Key Biscayne Finance Department.
Notes: (1) All amounts are estimated for timely inclusion in report. Requests for information received no response.
VILLAGE OF KEY BISCAYNE, FLORIDA
PRINCIPAL EMPLOYERS
2016 2007
CURRENT YEAR AND NINE YEARS AGO
89
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Number of Employees
General government 6 6 8 7 7 7 7 7 9 10
Public safety 79 78 81 80 80 81 84 81 82 78
Building, planning and zoning 14 13 13 13 13 15 17 17 14 14
Public works 4 4 4 4 4 4 4 4 5 4
Parks and recreation 7 7 10 10 10 10 12 10 910
Total Number of Employees 110 108 116 114 114 117 124 119 119 116
Source: Village of Key Biscayne Finance Department
VILLAGE OF KEY BISCAYNE, FLORIDA
FULL-TIME EQUIVALENT VILLAGE GOVERNMENT EMPLOYEES BY FUNCTION
LAST TEN FISCAL YEARS
90
Function/Program 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Public safety:
Police:
Police personnel and officers 40 39 42 41 41 42 44 41 43 43
Police calls for service 35,412 36,190 37,002 34,935 37,646 31,214 26,836 24,556 30,475 29,427
Parking violations 996 776 824 523 563 638 676 440 506 552
Traffic violations 1,104 946 975 1,425 1,269 1,542 1,875 846 939 956
Fire:
Fire personnel 39 39 39 39 39 39 40 40 39 35
Fire incidents 998 1,006 1,012 1,556 1,841 1,369 1,896 1,763 1,490 1,908
Fire inspections performed 220 305 229 267 469 323 469 739 667 770
Planning and development:
Building permits issued 3,504 3,620 3,650 4,371 3,723 3,402 3,885 3,876 3,684 3,501
Business tax receipts issued 931 978 1,095 1,129 1,165 1,187 937 987 1,097 1,219
Culture and recreation:
Number of building users 5,778 4,673 4,268 3,990 4,127 4,338 4,251 4,041 4,110 4,179
Solid waste:
Residential accounts 1,200 1,299 1,298 1,302 1,292 1,264 1,254 1,250 1,272 1,260
Sources: Various Village Departments.
VILLAGE OF KEY BISCAYNE, FLORIDA
OPERATING INDICATORS BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
91
Function/Program 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
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 4
Parks acreage 9 9 9 9 9 9 9 9 9 10
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
92
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
93
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, 2016, and the related notes to the financial
statements, which collectively comprise the Village’s basic financial statements, and have issued
our report thereon dated June 6, 2017.
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 opinion 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.
94
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
June 6, 2017
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
95
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, 2016, and have issued our report thereon dated
June 6, 2017.
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 Florida 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, regarding
compliance requirements in accordance with Chapter 10.550, Rules of the Auditor General.
Disclosures in those reports, which are dated June 6, 2017, 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. There were no findings or recommendations made in the
preceding annual financial audit report.
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.
96
Financial Condition
Section 10.554(1)(i)5.a. and 10.556(7), Rules of the Auditor General, require that we apply
appropriate procedures and 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. and 10.556(7), Rules of the Auditor General, require that we apply
appropriate procedures and report the results of our determination as to whether the annual
financial report for the Village for the fiscal year ended September 30, 2016, 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, 2016.
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
June 6, 2017
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
97
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, 2016. Management is
responsible for the Village’s compliance with the specified requirements. Our responsibility is to
express an opinion on the 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. Those standards require that we plan and
perform the examination to obtain reasonable assurance about whether the Village complied, in
all material respects, with the specified requirements referenced above. An examination involves
performing procedures to obtain evidence about whether the Village complied with the specified
requirements. The nature, timing, and extent of the procedures selected depend on our judgment,
including an assessment of the risks of material noncompliance, whether due to fraud or error.
We believe that the evidence we obtained is sufficient and appropriate to provide a reasonable
basis for our opinion.
Our examination does not provide a legal determination on the Village’s compliance with
specified requirements.
In our opinion, the Village complied, in all material respects, with Section 218.415 Florida
Statutes for the fiscal year ended September 30, 2016.
This report is intended to describe our testing of compliance with Section 218.415 Florida
Statutes and it is not suitable for any other purpose.
Miami, FL
June 6, 2017