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VILLAGE OF KEY BISCAYNE, FLORIDA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FISCAL YEAR ENDED SEPTEMBER 30, 2017
VILLAGE OF KEY BISCAYNE, FLORIDA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017
Prepared by:
THE FINANCE DEPARTMENT
VILLAGE OF KEY BISCAYNE, FLORIDA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017
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 .................................................................................. 23-66
Required Supplementary Information (Other Than MD&A)
Budgetary Comparison Schedule – General Fund ......................................................................67
Notes to Budgetary Comparison Schedule .................................................................................68
Schedule of Funding Progress – Other Post-Employment Benefits ...........................................69
Schedule of Changes in the Village’s Net Pension Liability and
Related Ratios – Pension Trust Fund .......................................................................................70
Schedule of Village Contributions – Pension Trust Fund ..........................................................71
Schedule of Investment Returns – Pension Trust Fund ..............................................................72
VILLAGE OF KEY BISCAYNE, FLORIDA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017
TABLE OF CONTENTS
Statistical Section
Statistical Section Contents ........................................................................................................73
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 .............................................................................85
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
Appendix A – Current Year Observations and Recommendations to Improve
Financial Management ....................................................................................................... 97-98
Independent Accountants’ Report on Compliance Pursuant to Section 218.415
Florida Statutes ........................................................................................................................99
INTRODUCTORY SECTION
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VILLAGE OF KEY BISCAYNE
The preparation of this report would not have been possible without the efficient and dedicated
services of the entire staff of all departments of the Village of Key Biscayne. We would like to
express our appreciation to all members of all of the departments who assisted and contributed to
the preparation of this report. We would also like to express our appreciation to Marcum LLP, our
independent auditors, for their assistance and efforts in helping the Village prepare the CAFR.
Appreciation is also extended to the Mayor and the Village Council for their unfailing support for
maintaining the highest standards of professionalism in the management of the Village of Key
Biscayne's finances.
Respectfully submitted,
Beatrice Galeano
Acting Finance Director
iv
MISSION STATEMENT "TO PROVIDE A SAFE, QUALITY COMMUNITY ENVIRONMENT FOR ALL ISLANDERS THROUGH RESPONSIBLE GOVERNMENT."
v
VILLAGE OF KEY BISCAYNE, FLORIDA
VILLAGE OFFICIALS
As of SEPTEMBER 30, 2017
VILLAGE COUNCIL
Mayra Peña Lindsay, Mayor
Franklin H. Caplan, Vice Mayor
Luis de la Cruz, Councilman
Gary R. Gross, Councilman
Allison McCormick, Councilman
Brett G. Moss, Councilman
Kathleen Petros, Councilman
VILLAGE MANAGER
John C. Gilbert
VILLAGE CLERK
Jennifer Duque, CMC
VILLAGE ATTORNEY
Weiss Serota Helfman Pastoriza Cole & Boniske, P.A.
FINANCE DIRECTOR
Beatrice Galeano, Acting Finance Director
INDEPENDENT AUDITORS
Marcum LLP
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vii
ORGANIZATION CHART
2017
FINANCIAL SECTION
INDEPENDENT AUDITORS’ REPORT
Marcum LLP n One Southeast Third Avenue n Suite 1100 n Miami, Florida 33131 n Phone 305.995.9600 n Fax 305.995.9601 n www.marcumllp.com
1
INDEPENDENT AUDITORS’ REPORT
Honorable Mayor, Village Council and Village Manager
Village of Key Biscayne, Florida
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, the
business-type activities, each major fund and the aggregate remaining fund information of the
Village of Key Biscayne, Florida (the Village), as of and for the fiscal year ended September 30,
2017, 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, 2017, 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 67 and 68, and the required supplementary information for OPEB and the pension trust
fund on pages 69 to 72 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 7,
2018 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 solely to describe the scope of our testing of internal control
over financial reporting and compliance and the results of that testing, and not to provide an opinion
on the effectiveness of the Village’s 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 7, 2018
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, 2017. 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 and
deferred inflows of resources at the close of the most recent fiscal year resulting in a net position balance
of $91,971,757.
The Village’s total net position increased by $3,346,147. 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 $26,082,060, a decrease of $797,331 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 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 focusses 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 66.
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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 67 to 72 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 $91,971,757 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 $75,564,583. The Village of Key Biscayne uses these capital assets to provide services to
citizens; consequently, these assets are not available for future spending.
Our analysis of the financial statements of the Village begins below. The Statement of Net Position and
the Statement of Activities report information about the Village’s activities that will help answer questions
about the financial position of the Village. A comparative analysis is provided with prior year information.
Net Position
A Summary of the Village’s Net Position is presented in Table A-1 and a Summary of the Changes in Net
Position is presented in Table A-2.
2017 2016 2017 2016 2017 2016
Current assets 30,554,123$ 31,390,124$ 1,626,421$ 2,712,428$ 32,180,544$ 34,102,552$
Capital assets, net 81,416,035 77,544,233 20,033,179 20,548,697 101,449,214 98,092,930
Total Assets 111,970,158 108,934,357 21,659,600 23,261,125 133,629,758 132,195,482
Deferred Outflows of Resources 3,107,079 3,205,217 -- -- 3,107,079 3,205,217
Current liabilities 4,610,472 4,670,331 187,434 46,422 4,797,906 4,716,753
Noncurrent liabilities 30,342,763 32,337,298 8,607,761 9,302,484 38,950,524 41,639,782
Total Liabilities 34,953,235 37,007,629 8,795,195 9,348,906 43,748,430 46,356,535
Deferred Inflows of Resources 1,016,650 418,554 -- -- 1,016,650 418,554
Net investment in
capital assets 62,100,873 51,961,356 13,463,710 13,260,222 75,564,583 65,221,578
Restricted 2,665,724 3,425,433 -- -- 2,665,724 3,425,433
Unrestricted 14,340,755 19,326,602 (599,305) 651,997 13,741,450 19,978,599
Total Net Position 79,107,352$ 74,713,391$ 12,864,405$ 13,912,219$ 91,971,757$ 88,625,610$
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 upsurge is mainly attributable to a rise in property tax revenue. Property values
within the Village increase by 8% which generated and additional $1.9 million in tax revenue when
compared to the previous year.
2017 2016 2017 2016 2017 2016
Revenues
Program revenues:
Charges for services 4,831,115$ 6,060,520$ 1,585,027$ 1,560,724$ 6,416,142$ 7,621,244$
Operating grants and contributions 59,412 54,331 -- 164,176 59,412 218,507
Capital grants and contributions 873,734 867,197 -- -- 873,734 867,197
General revenues:
Property taxes 24,202,255 22,249,642 -- -- 24,202,255 22,249,642
Utility taxes 2,110,494 2,007,095 -- -- 2,110,494 2,007,095
Communications services tax 698,927 753,385 -- -- 698,927 753,385
Franchise fees 479,194 603,889 -- -- 479,194 603,889
Unrestricted intergovernmental revenue 1,555,215 1,955,183 -- -- 1,555,215 1,955,183
Investment income and miscellaneous 262,932 193,000 24,282 5,986 287,214 198,986
Total Revenues 35,073,278 34,744,242 1,609,309 1,730,886 36,682,587 36,475,128
Expenses
General government 4,536,855 7,579,355 -- -- 4,536,855 7,579,355
Public Safety 13,987,646 13,390,298 -- -- 13,987,646 13,390,298
Parks and Recreation 2,901,870 5,388,588 -- -- 2,901,870 5,388,588
Public Works 2,550,733 2,078,721 -- -- 2,550,733 2,078,721
Building, Zoning and Planning 5,839,083 2,165,717 -- -- 5,839,083 2,165,717
Interest on long-term debt 894,934 796,152 -- -- 894,934 796,152
Stormwater -- -- 1,060,705 934,223 1,060,705 934,223
Solid waste collection -- -- 994,042 840,730 994,042 840,730
Sanitary sewer construction -- -- 792,044 1,137,592 792,044 1,137,592
Total Expenses 30,711,121 31,398,831 2,846,791 2,912,545 33,557,912 34,311,376
Change in Net Position before contributions
and transfers 4,362,157 3,345,411 (1,237,482) (1,181,659) 3,124,675 2,163,752
Capital contribution -- -- 221,472 -- 221,472 --
Transfers 31,804 (382,883) (31,804) 382,883 -- --
Changes in Net Position 4,393,961 2,962,528 (1,047,814) (798,776) 3,346,147 2,163,752
Net Position - Beginning, previously reported 74,713,391 -- 13,912,219 13,714,888 88,625,610 13,714,888
Prior period adjustment -- -- -- 996,107 -- 996,107
Net Position - Beginning, restated 74,713,391 71,750,863 197,331 14,710,995 74,910,722 14,710,995
Table A - 2
Summary of Changes in Net Position
Governmental Activities Business-type Activities Total
Business-type Activities
Business-type activities decreased the Village’s net position by $1,047,814. In fiscal 2017, the
Stormwater and Sanitary Sewer funds both reflected decreases in net position. The Stormwater fund
benefitted from a capital grant during the previous year and as a result its net position decreased in the
current year. The Solid Waste Fund showed a decrease of $140,700 due to an increase in contractual
services the preceding year. Annual sold waste collection rates have been adjusted to counter set costs
in future years.
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Governmental Activities
Ad Valorem Taxes,
$24,202,255 , 71.15%
Franchise Fees, $479,194 , 2%
Communications Services Tax,
$698,927 , 2%
Utility Taxes, $2,110,494 , 6%
Intergovernmental,
$1,555,215 , 5%
Charges for Services,
$4,831,115 , 14%
Operating Grants & Capital
Contributions, $59,412 , 0%
Investment Earnings, $78,443 ,
0%
Revenues by Source ‐Governmental Activities
Ad Valorem Taxes Franchise Fees Communications Services Tax
Utility Taxes Intergovernmental Charges for Services
Operating Grants & Capital Contributions Investment Earnings
General Government,
$4,536,855 , 14.77%
Public Works, $2,901,870
, 9.45%
Police, $6,881,360 ,
22.41%Fire, $7,106,286 , 23.14%
Parks and Recreation,
$5,839,083 , 19.01%
Building, Zoning and
Planning, $2,550,733 ,
8.31%
Interest on Long Term Debt,
$894,934 , 2.91%
Expenses ‐Governmental Activities
General Government Public Works Police Fire
Parks and Recreation Building, Zoning and Planning Interest on Long Term Debt
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Business-type Activities
Solid Waste Charges,
$651,344 , 41%
Stormwater Charges,
$933,683 , 59%
Revenues by Source ‐Business‐Type Activities
Solid Waste Charges Stormwater Charges
Solid Waste, $792,044
, 28%
Sanitary Sewer,
$994,042 , 35%
Stormwater,
$1,060,705 , 37%
Expenses ‐Business‐Type Activities
Solid Waste Sanitary Sewer Stormwater
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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 $30,846,385, an increase of
$2,896,417 in comparison with the prior year. The increase is primarily due the increase in property tax
revenue. Property values within the Village increase by 8% which generated and additional $1.9 million
in tax revenue when compared to the previous year. All balances have been categorized and set aside for
the following uses: (1) Non-spendable: $598,249, (2) Restricted: $1,950,591 (3) Committed: $12,034,340
and (4) Assigned: $16,263,206.
The general fund is the chief operating fund of the Village of Key Biscayne. As a measure of the general
fund’s liquidity, it may be useful to compare total fund balance to total fund expenditures. Total fund
balance represents 100% of total general fund expenditures.
A summary of the general fund’s balance sheet and statement of revenues, expenditures and changes in
fund balance is presented in Table B-1 and B-2 for September 30, 2017 and 2016, is as follows:
2017 2016
Total Assets 34,691,907$ 30,610,340$
Total Liabilities 3,845,522$ 2,660,372$
Fund Balance
Nonspendable 598,249 443,084
Restricted 1,950,591 2,795,695
Committed 12,034,340 11,606,197
Assigned 16,263,205 13,104,992
Total Fund Balance 30,846,385 27,949,968
Total Liabilities and Fund Balance 34,691,907$ 30,610,340$
2017 2016
Total Revenues 33,978,319$ 33,624,225$
Total Expenditures 30,751,184 28,583,263
Excess 3,227,135 5,040,962
Total Other Financing Sources (Uses)(330,718) (4,643,086)
Net Change in Fund Balance 2,896,417$ 397,876$
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
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Overall total revenues in fiscal year 2016 was $33,624,225 as compared to $33,978,319 in 2017, an
increase of $354,094.
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 2017, the Transportation Fund shows a fund balance of $1,541,029, of which
$715,133 is restricted for future transit projects.
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 2017 reflects a negative unassigned balance of $6,305,354 which is made up of various projects
detailed in the annually adopted Capital Improvement Plan. Most projects customarily span a five-year
period while others are revolving. Additional detail regarding these projects is described in the Capital
Asset section below.
General Fund Budgetary Highlights
Notable negative budget to actual variances are reflected in the Public Works department. The increase in
expenditures within the Public Works department are directly related to Hurricane Irma which made landfall
on September 10, 2017. Approximately $864,000 in storm associated costs were incurred prior to year-end.
A portion of those costs are expected to be reimbursed by FEMA.
Capital Assets
As of September 30, 2017, the Village’s capital assets net of accumulated depreciation amounted to
$101,449,214 as compared to $98,092,930 as of September 30, 2016. Major capital asset events during the
fiscal year included the following:
Continuation of Community Center Expansion
Continuation of the Beach Renourishment program
Installation of Artificial Turf – Village Green
Landscaping of new park – 401 Hampton Lane
Continuation of Dog Park Project
Continuation of Lighting/LED replacement program
Addition of Public Safety and Code Compliance vehicles
Addition of Pierce Enforcer - Fire Engine
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, 2017, the Village had bonded debt outstanding of $30,339,000 (composed of $21,731,237
in governmental activities and $8,607,763 of business-type activities) compared to $34,271,982 as of
September 30, 2016. Of this amount, $3,222,833 represents bonds secured solely by specified revenue
sources (Transportation Tax Revenue Bonds, Road Improvement Revenue Bonds and State Revolving Fund
Loans). The remainder represents special obligation bonds that are secured by non-ad valorem revenues
through covenants to budget and appropriate.
Additional information on the Village’s long-term debt can be found in Note 8 on pages 44-54 of this report.
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Economic Factors and Next Year’s Budgets and Rates
As the local and national economy continues to improve, commercial real estate in Miami-Dade continues
to flourish. Miami-Dade County is leading the way in attracting diverse new businesses to our area. Based
on these indicators, the Village of Key Biscayne continues to manage a budget that is responsive to the needs
of its community. Long term financial planning efforts continue, the Village has implemented a 5-year
Strategic Plan to determine the priorities for the Village and the initial indicators needed to measure progress
towards these priorities.
The unemployment rate for Miami-Dade County is 4.7%, which is a decrease from a rate of 5.2% a year ago.
The state’s average unemployment rate is 3.9% as of September 30, 2017. All these factors were considered
during preparation of the Village of Key Biscayne’s budget for the 2018 fiscal year. The Village’s millage
rate for fiscal year 2017 and fiscal year 2018 is 3.00.
Requests for Information
This financial report is designed to provide a general overview of the Village of Key Biscayne’s finances for
all those with an interest in the government’s finances. Questions concerning any of the information provided
in this report or requests for additional financial information should be addressed to the Office of the Village
Manager, 88 West McIntyre Street, Key Biscayne, Florida, 33149.
BASIC FINANCIAL STATEMENTS
Business-
Governmental type
Activities Activities Total
Assets
Cash 6,101,274$ 711,123$ 6,812,397$
Investments 15,143,934 -- 15,143,934
Receivables, net 773,186 556,230 1,329,416
Prepaid items 598,249 500 598,749
Internal balances 1,679,724 (1,679,724) --
Restricted assets:
Cash 3,872,377 -- 3,872,377
Investments 2,385,379 2,038,292 4,423,671
Capital assets not being depreciated 35,203,242 695,770 35,899,012
Capital assets being depreciated, net 46,212,793 19,337,409 65,550,202
Total Assets 111,970,158 21,659,600 133,629,758
Deferred Outflows of Resources
Pension 3,107,079 -- 3,107,079
Liabilities
Accounts payable and accrued liabilities 3,161,278 187,434 3,348,712
Accrued interest payable 138,409 -- 138,409
Payable to pension plan 406,773 -- 406,773
Unearned revenue 904,012 -- 904,012
Noncurrent liabilities:
Due within one year 4,151,481 250,473 4,401,954
Due in more than one year 22,235,113 8,357,288 30,592,401
Net pension liability 2,796,035 -- 2,796,035
Net OPEB obligation 1,160,134 -- 1,160,134
Total Liabilities 34,953,235 8,795,195 43,748,430
Deferred Inflows of Resources
Pension 1,016,650 -- 1,016,650
Net Position
Net investment in capital assets 62,100,873 13,463,710 75,564,583
Restricted:
Building and zoning 1,159,190 -- 1,159,190
Transportation 715,133 -- 715,133
Law enforcement 368,754 -- 368,754
Fire rescue 422,647 -- 422,647
Unrestricted 14,340,755 (599,305) 13,741,450
Total Net Position 79,107,352$ 12,864,405$ 91,971,757$
VILLAGE OF KEY BISCAYNE, FLORIDA
STATEMENT OF NET POSITION
SEPTEMBER 30, 2017
The accompanying notes are an integral part of these financial statements.
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Charges Operating Capital Business-
for Grants and Grants and Governmental type
Functions/Programs Expenses Services Contributions Contributions Activities Activities Total
Governmental Activities
General government 4,536,855$ 183,901$ --$ --$ (4,352,954)$ --$ (4,352,954)$
Police 6,881,360 3,571 -- -- (6,877,789) -- (6,877,789)
Fire 7,106,286 162,683 -- -- (6,943,603) -- (6,943,603)
Public works 2,901,870 -- -- 873,734 (2,028,136) -- (2,028,136)
Building, zoning and planning 2,550,733 1,338,485 -- -- (1,212,248) -- (1,212,248)
Parks and recreation 5,839,083 3,142,475 59,412 -- (2,637,196) -- (2,637,196)
Interest on long-term debt 894,934 -- -- -- (894,934) -- (894,934)
Total Governmental Activities 30,711,121 4,831,115 59,412 873,734 (24,946,860) -- (24,946,860)
Business-type Activities
Stormwater 1,060,705 933,683 -- -- -- (127,022) (127,022)
Sanitary sewer 994,042 -- -- -- -- (994,042) (994,042)
Solid waste 792,044 651,344 -- -- -- (140,700) (140,700)
Total Business-type Activities 2,846,791 1,585,027 -- -- -- (1,261,764) (1,261,764)
Total 33,557,912$ 6,416,142$ 59,412$ 873,734$ (24,946,860) (1,261,764) (26,208,624)
General Revenues
Property taxes 24,202,255 -- 24,202,255
Franchise fees based on gross receipts 479,194 -- 479,194
Utility taxes 2,110,494 -- 2,110,494
Communications services tax 698,927 -- 698,927
Unrestricted intergovernmental revenue 1,555,215 -- 1,555,215
Unrestricted investment earnings 78,443 24,282 102,725
Miscellaneous 184,489 -- 184,489
Contribution from General Fund -- 221,472 221,472
Transfers 31,804 (31,804) --
Total General Revenues, Contribution, and Transfers 29,340,821 213,950 29,554,771
Change in Net Position 4,393,961 (1,047,814) 3,346,147
Net Position - Beginning 74,713,391 13,912,219 88,625,610
Net Position - Ending 79,107,352$ 12,864,405$ 91,971,757$
VILLAGE OF KEY BISCAYNE, FLORIDA
STATEMENT OF ACTIVITIES
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017
Net (Expense) Revenue and
Program Revenues Changes in Net Position
The accompanying notes are an integral part of these financial statements.
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Transportation Total
Special Capital Governmental
General Revenue Improvements Funds
Assets
Cash and 6,098,147$ --$ 3,127$ 6,101,274$
Investments 15,143,934 -- -- 15,143,934
Receivables, net 564,373 207,531 1,282 773,186
Due from other funds 9,768,561 375,281 18,036 10,161,878
Prepaid items 598,249 -- -- 598,249
Restricted cash 2,149,889 1,257,172 465,316 3,872,377
Restricted investments 368,754 -- 2,016,625 2,385,379
Total Assets 34,691,907$ 1,839,984$ 2,504,386$ 39,036,277$
Liabilities
Accounts payable and accrued liabilities 1,933,142$ --$ 1,228,136$ 3,161,278$
Due to other funds 601,595 298,955 7,581,604 8,482,154
Payable to pension plan 406,773 -- -- 406,773
Unearned revenue 904,012 -- -- 904,012
Total Liabilities 3,845,522 298,955 8,809,740 12,954,217
Fund Balances (Note 9)
Non-spendable 598,249 -- -- 598,249
Restricted 1,950,591 715,133 -- 2,665,724
Committed 12,034,340 -- -- 12,034,340
Assigned 16,263,205 825,896 -- 17,089,101
Unassigned (Deficit) -- -- (6,305,354) (6,305,354)
Total Fund Balances 30,846,385 1,541,029 (6,305,354) 26,082,060
Total Liabilities and Fund Balances 34,691,907$ 1,839,984$ 2,504,386$
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 81,416,035
Deferred outflows of resources related to pensions are recorded in the statement of net position 3,107,079
Deferred inflows of resources related to pensions are recorded in the statement of net position (1,016,650)
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) (27,685,137)
The net pension liability is not due and payable in the current period and
therefore is not reported in the governmental funds (2,796,035)
Net Position of Governmental Activities 79,107,352$
VILLAGE OF KEY BISCAYNE, FLORIDA
BALANCE SHEET
GOVERNMENTAL FUNDS
SEPTEMBER 30, 2017
The accompanying notes are an integral part of these financial statements.
15
Transportation Total
Special Capital Governmental
General Revenue Improvements Funds
Revenues
Property taxes 24,202,255$ --$ --$ 24,202,255$
Utility taxes 2,110,494 -- -- 2,110,494
Communications services tax 698,927 -- -- 698,927
Franchise fees 479,194 -- -- 479,194
Licenses and permits 1,239,116 -- -- 1,239,116
Intergovernmental 1,334,109 1,094,840 -- 2,428,949
Charges for services 3,591,999 -- -- 3,591,999
Interest 78,324 95 24 78,443
Grants 59,412 -- -- 59,412
Miscellaneous revenue and other 184,489 -- -- 184,489
Total Revenues 33,978,319 1,094,935 24 35,073,278
Expenditures
Current:
General government 3,246,004 -- 19,026 3,265,030
Fire 6,882,673 -- -- 6,882,673
Police 6,621,521 -- -- 6,621,521
Public works 2,683,504 -- -- 2,683,504
Building, zoning and planning 2,476,950 -- -- 2,476,950
Parks and recreation 5,072,725 -- 1,049 5,073,774
Capital outlay 128,885 -- 6,438,265 6,567,150
Debt service:
Principal 2,969,211 490,522 -- 3,459,733
Interest and fiscal charges 669,711 107,388 -- 777,099
Total Expenditures 30,751,184 597,910 6,458,340 37,807,434
Excess (deficiency) of revenues
over expenditures 3,227,135 497,025 (6,458,316) (2,734,156)
Other Financing Sources (Uses)
Capital lease 1,905,021 -- -- 1,905,021
Transfers in 59,938 -- 2,267,543 2,327,481
Transfers out (2,295,677) -- -- (2,295,677)
Total Other Financing Sources (Uses)(330,718) -- 2,267,543 1,936,825
Change in Fund Balances 2,896,417 497,025 (4,190,773) (797,331)
Fund Balances - Beginning 27,949,968 1,044,004 (2,114,581) 26,879,391
Fund Balances - Ending 30,846,385$ 1,541,029$ (6,305,354)$ 26,082,060$
VILLAGE OF KEY BISCAYNE, FLORIDA
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017
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:
Change in fund balances - total governmental funds (Page 16)(797,331)$
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 6,615,326$
Depreciation expense (2,743,524) 3,871,802
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:
Capital lease proceeds (1,905,021)
Debt payments 3,238,261
Capital lease payments 82,035 1,415,275
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 (98,246)
Accrued interest 21,602
Net OPEB obligation (123,420)
Net pension liability 800,513 600,449
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 (696,234)
Change in net position of governmental activities (Page 14)4,393,961$
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, 2017
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 257,513$ --$ 453,610$ 711,123$
Accounts receivables, net 254,227 -- 302,003 556,230
Restricted investments 2,038,292 -- -- 2,038,292
Due from other funds 200,668 -- 7,610 208,278
Other assets 500 -- -- 500
Total Current Assets 2,751,200 -- 763,223 3,514,423
Noncurrent Assets
Capital assets being depreciated, net 6,468,601 12,868,808 -- 19,337,409
Construction in Progress 695,770 -- -- 695,770
Total Noncurrent Assets 7,164,371 12,868,808 -- 20,033,179
Total Assets 9,915,571 12,868,808 763,223 23,547,602
Liabilities
Current Liabilities
Accounts payable and accrued liabilities 175,485 11,949 -- 187,434
Due to other funds 1,166,014 -- 721,988 1,888,002
Current portion of revolving loans -- 24,617 -- 24,617
Current portion of revenue bonds payable -- 225,856 -- 225,856
Total Current Liabilities 1,341,499 262,422 721,988 2,325,909
Noncurrent Liabilities
Revolving loans payable -- 118,867 -- 118,867
Revenue bonds payable 5,296,354 2,942,067 -- 8,238,421
Total Noncurrent Liabilities 5,296,354 3,060,934 -- 8,357,288
Total Liabilities 6,637,853 3,323,356 721,988 10,683,197
Net Position
Net investment in capital assets 3,906,309 9,557,401 -- 13,463,710
Unrestricted (628,591) (11,949) 41,235 (599,305)
Total Net Position 3,277,718$ 9,545,452$ 41,235$ 12,864,405$
Business-type Activities -
Enterprise Funds
VILLAGE OF KEY BISCAYNE, FLORIDA
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
SEPTEMBER 30, 2017
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 933,683$ --$ 651,344$ 1,585,027$
Operating Expenses
General and administrative 543,808 -- 792,044 1,335,852
Depreciation 385,915 989,908 -- 1,375,823
Total Operating Expenses 929,723 989,908 792,044 2,711,675
Operating Income (Loss)3,960 (989,908) (140,700) (1,126,648)
Non-Operating Revenues (Expenses)
Interest income 24,282 -- -- 24,282
Interest expense (130,982) (4,134) -- (135,116)
Total Non-Operating Expenses (106,700) (4,134) -- (110,834)
Loss before Contributions and Transfers (102,740) (994,042) (140,700) (1,237,482)
Contribution from General Fund -- 221,472 -- 221,472
Transfers in -- 28,133 -- 28,133
Transfers out -- (59,937) -- (59,937)
Change in Net Position (102,740) (804,374) (140,700) (1,047,814)
Net Position- Beginning 3,380,458 10,349,826 181,935 13,912,219
Net Position - Ending 3,277,718$ 9,545,452$ 41,235$ 12,864,405$
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, 2017
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 674,573$ --$ 1,229,303$ 1,903,876$
Receipts for interfund services 1,025,597 -- -- 1,025,597
Payments to suppliers (402,796) -- (789,890) (1,192,686)
Net Cash Provided by Operating Activities 1,297,374 -- 439,413 1,736,787
Cash Flows from Non-Capital Financing Activities
Transfers in from general fund -- 28,133 -- 28,133
Transfers out to general fund -- (59,937) -- (59,937)
Net Cash Used by Non-Capital Financing Activities -- (31,804) -- (31,804)
Cash Flows from Capital and Related
Financing Activities
Payments for construction of capital assets (860,305) -- -- (860,305)
Payments on revenue bonds (6,016,798) (100,605) -- (6,117,403)
Proceeds from improvement bonds 5,668,152 -- -- 5,668,152
Payments on revolving loans -- (24,000) -- (24,000)
Interest and fees paid on long term debt (130,983) (4,134) -- (135,117)
Net Cash Used by Capital and Related
Financing Activities (1,339,934) (128,739) -- (1,468,673)
Cash Flows from Investing Activities
Purchase of investments (24,283) -- -- (24,283)
Interest received 24,283 -- -- 24,283
Net Cash Provided by Investing Activities -- -- -- --
Net Increase (Decrease) in Cash (42,560) (160,543) 439,413 236,310
Cash - Beginning 300,073 160,543 14,197 474,813
Cash - Ending 257,513$ --$ 453,610$ 711,123$
Reconciliation of Operating Income (Loss) to Net
Cash Provided by Operating Activities
Operating income (loss) 3,960$ (989,908)$ (140,700)$ (1,126,648)$
Adjustments to reconcile operating income (loss) to net
cash provided by operating activities:
Depreciation 385,915 989,908 -- 1,375,823
Changes in operating assets and liabilities:
(Increase) decrease in:
Accounts receivable, net (58,442) -- (19,385) (77,827)
Due from other funds (200,668) -- (7,610) (208,278)
Increase (decrease) in:
Accounts payable and accrued liabilities 141,012 -- -- 141,012
Due to other funds 1,025,597 -- 607,108 1,632,705
Total adjustments 1,293,414 989,908 580,113 2,863,435
Net Cash Provided by Operating Activities 1,297,374$ --$ 439,413$ 1,736,787$
Noncash Investing, Capital, and Financing activities:
In the Sanitary Sewer Fund, payments on revenue bonds in the amount of $221,472 were budgeted and funded through
the General Fund.
Business-type Activities -
Enterprise Funds
VILLAGE OF KEY BISCAYNE, FLORIDA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017
The accompanying notes are an integral part of these financial statements.
20
Assets
Investments
Money market funds 502,671$
Common stocks 7,789,689
Mutual funds 21,972,185
Limited partnerships 1,536,891
Real Estate Open-End Fund 2,920,838
Investments held in the Share Plan 1,205,381
Investments held in the DROP Plan 1,266,033
Total Investments 37,193,688
Receivables
Accrued income 13,500
Employer contributions 426,097
Employee contributions 23,340
Total Receivables 462,937
Total Assets 37,656,625
Liabilities
Accounts payable and accrued liabilities 25,869
Deferred Inflows of Resources
Advance contribution from employer 289,001
Net Position Restricted for Pension Benefits 37,341,755$
VILLAGE OF KEY BISCAYNE, FLORIDA
STATEMENT OF FIDUCIARY NET POSITION
PENSION TRUST FUND
SEPTEMBER 30, 2017
The accompanying notes are an integral part of these financial statements.
21
Additions
Contributions
Plan members 598,996$
Village 937,715
Total Contributions 1,536,711
Investment Income
Net appreciation in the fair value of investments 3,157,267
Net appreciation in the fair value of investments (Share and DROP)220,493
Interest and dividends 778,554
Other 26,831
4,183,145
Less: investment expenses (71,205)
Net Investment Income 4,111,940
Total Additions 5,648,651
Deductions
Benefits paid 667,194
Refund of participant contributions 36,765
DROP distributions 411,599
Share Plan distributions 3,090
Administrative expenses 60,179
Total Deductions 1,178,827
Change in Net Position 4,469,824
Net Position Restricted for Pension Benefits
Beginning of year 32,871,931
End of year 37,341,755$
VILLAGE OF KEY BISCAYNE, FLORIDA
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
PENSION TRUST FUND
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017
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, 2017
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, 2017
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, 2017
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, 2017
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 did not implement any GASB Statements during the fiscal year ended
September 30, 2017 which had an impact on the Village’s financial statements.
E. ASSETS, LIABILITIES, DEFERRED OUTFLOWS/INFLOWS OF RESOURCES AND NET
POSITION OR EQUITY
1. Deposits and Investments
The Village’s cash includes cash on hand; the certificates of deposit are included in
investments. Substantially all other investments, including pension investments, are
recorded at fair value. Money market funds and the Village’s repurchase agreement are
reported at amortized cost.
The Village’s and pension plan’s investments are governed by their respective
investment policies.
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017
27
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
E. ASSETS, LIABILITIES, DEFERRED OUTFLOWS/INFLOWS OF RESOURCES AND NET
POSITION OR EQUITY (CONTINUED)
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.
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 2017.
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017
28
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
E. ASSETS, LIABILITIES, DEFERRED OUTFLOWS/INFLOWS OF RESOURCES, AND NET
POSITION OR EQUITY (CONTINUED)
4. Capital Assets (continued)
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.
The Village records impairment losses on long-lived assets used in operations when
events and circumstances indicate the assets might be impaired. No impairment losses
have been recorded.
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 have any unavailable revenue in the
year. 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, 2017
29
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
E. ASSETS, LIABILITIES, DEFERRED OUTFLOWS/INFLOWS OF RESOURCES, 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, 2017 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.
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,
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017
30
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
E. ASSETS, LIABILITIES, DEFERRED OUTFLOWS/INFLOWS OF RESOURCES, AND NET
POSITION OR EQUITY (CONTINUED)
8. Deferred Outflows/Inflows of Resources (continued)
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, 2016. The amounts paid during fiscal year 2017 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. 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.
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017
31
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
E. ASSETS, LIABILITIES, DEFERRED OUTFLOWS/INFLOWS OF RESOURCES, AND NET
POSITION OR EQUITY (CONTINUED)
9. Fund Equity (continued)
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.
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, and also reduced by unexpended
proceeds. Restricted net position is that portion of net position that has been restricted
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017
32
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
E. ASSETS, LIABILITIES, DEFERRED OUTFLOWS/INFLOWS OF RESOURCES, AND NET
POSITION OR EQUITY (CONTINUED)
10. Net Position (continued)
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, liabilities and deferred
inflows/outflows 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.
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.
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017
33
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 $27,685,137 difference, excluding the net pension liability
which is separately disclosed, are as follows:
Bonds payable 21,731,237$
Capital leases payable 1,970,887
Compensated absences 2,684,470
Accrued Interest payable 138,409
Net OPEB obligation 1,160,134
27,685,137$
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 0.15% to 1.24% and with maturities ranging from 180 days to 730 days totaling
$12,491,834 which are presented as investments in the accompanying financial statements.
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017
34
NOTE 3 – DEPOSITS AND INVESTMENTS (CONTINUED)
INVESTMENTS
The Village’s investment policy follows the requirements of Florida Statutes Chapter
218.415, and attempts to promote, in order of priority, safety of principal, adequate
liquidity, and maximization of total return. The Village’s investment policy authorizes
investments in direct obligations of the U.S. Government, its agencies or instrumentalities.
The Village is also authorized to invest in SEC registered money market mutual funds,
insured or fully collateralized deposits, repurchase agreements secured by direct obligations
of the U.S. Government, and authorized intergovernmental investment pools. The
investment policy defined in the statutes attempts to promote, through state assistance, the
maximization of net interest earnings on invested surplus funds of local units of
governments while limiting the risk to which the funds are exposed. The Village maintains
a separate investment policy for its pension plan.
INVESTMENTS – VILLAGE
As of September 30, 2017, the Village had the following fixed income investments
measured at amortized cost, with the corresponding maturities in its portfolio:
Investments Value 1-5
Repurchase Agreements 4,690,392$ 4,690,392$
(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 for five years.
Credit Risk
State law and the Village’s investment policy limits investments in bonds, U.S. treasuries and
agency obligations, or other evidences of indebtedness to the top ratings issued by nationally
recognized statistical rating organizations of the United States. The Village is currently not
invested in any of these types of investments.
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017
35
NOTE 3 – DEPOSITS AND INVESTMENTS (CONTINUED)
INVESTMENTS – VILLAGE (CONTINUED)
Custodial Credit Risk
For an investment, custodial credit risk is the risk that, in the event of the failure of the
counterparty, the Village will not be able to recover the value of its investments or collateral
securities that are in the possession of an outside party. The Village’s $4.7 million investment
in repurchase agreements is held by the investment’s counterparty, not in the name of the
Village. The Village’s investment policy does not have a limit on holding of securities by
counterparties.
INVESTMENTS – PENSION PLAN
For the Village’s pension plan, Florida statutes and the Plan’s investment policy authorize the
Trustees to invest funds in various investments. A Master Custodian Agreement is maintained
whereby the investment securities are held in the Plan’s name by a financial institution acting
as the Plan’s agent. The current target allocation of these investments are as follows:
Authorized Investments Target % Allowable Range
Large cap core equity 5.0%4% - 8%
Large cap value equity 10.0%6% - 12%
Large cap growth equity 10.0% 6% - 12%
Mid-cap value equity 3.5% 2% - 5%
Mid-cap growth equity 3.5%2% - 5%
Small-cap value equity 1.5%1% - 3%
Small-cap growth equity 1.5%1% - 3%
International equity 12.0% 5% - 25%
Real estate investment trust 2.0% 0% - 4%
Private real estate 10.0% 5% - 12%
High yield 3.0% 0% - 5%
Fixed income bonds 33.0% 25% - 64%
Master limited partnerships 5.0%2% - 7%
Total 100.0%
As of September 30, 2017, the Village’s Pension Plan had the following fixed income
investments with the corresponding maturities in its portfolio:
Fair Less
Investments Value Than 1 1-5 6-10 10+
Bond Mutual Funds 6,636,351$ 640,075$ 2,305,840$ 2,665,499$ 1,024,937$
Investment Maturities (In Years)
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017
36
NOTE 3 – DEPOSITS AND INVESTMENTS (CONTINUED)
INVESTMENTS – PENSION PLAN (CONTINUED)
Interest Rate Risk
Interest rate risk refers to the portfolio's exposure to fair value losses arising from
increasing interest rates. The Plan does not have a formal investment policy that limits
investment maturities as a means of managing its exposure to market value losses arising
from increasing interest rates.
Credit Risk
State law and the Plan’s investment policy limits investments in bonds, stocks, or other
evidences of indebtedness issued or guaranteed by a corporation organized under the laws
of the United States, any state or organized territory of the United States, or the District of
Columbia, provided the corporation is listed on any one or more of the recognized national
stock exchanges or on the National Market System of the NASDAQ Stock Market and in
the case of bonds only, holds a rating in one of the three highest classifications by a major
rating service. The Plan’s investment policy limits fixed income securities to a rating no
lower than Standard & Poor's BBB or Moody’s BAA (high yield and foreign bonds are
exempt).
The Plan's fixed income securities which are subject to a rating, were all rated "BBB" 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, 2017, the value of each position held in
the Plan’s portfolio comprised less than 5% of Fiduciary 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, 2017
37
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, 2017
38
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, 2017:
Quoted Prices
in Active Significant
Markets for Other Significant
Identical Observable Unobservable
Assets Inputs Inputs
9/30/2017 (Level 1) (Level 2) (Level 3)
Investments by Fair Value Level
Equity securities
Common stock 7,789,689$ 7,789,689$ --$ --$
International mutual fund 2,884,586 2,884,586 -- --
Fixed income mutual funds 6,636,351 6,636,351 -- --
Mutual fund equities 12,451,248 12,451,248 -- --
Mutual funds (DROP)1,266,033 1,266,033 -- --
Mutual funds (Share)1,205,381 1,205,381 -- --
Total Investments at Fair Value 32,233,288 32,233,288$ --$ --$
Investment Measured at Net Asset Value (NAV)*
General limited partnership 956,744
Master limited partnership 580,147
Real estate open-end fund 2,920,838
Total investments measured at NAV 4,457,729
Money market funds (exempt)502,671
Total Investments 37,193,688$
Fair Value Measurements Using
* 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.
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017
39
NOTE 3 – DEPOSITS AND INVESTMENTS (CONTINUED)
FAIR VALUE HIERARCHY (CONTINUED)
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.
Investment Measured at NAV Redemption Redemption
Fair Unfunded Frequency (if Notice
Value Commitments Currently Eligible) Period
General limited partnership (1)956,744$ --$ Monthly 5 days
Master limited partnership (2)580,147 -- Daily 3 days
Real estate open-end fund (3)2,920,838 -- Quarterly N/A
4,457,729$
1.General Limited 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 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.
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017
40
NOTE 4 – RECEIVABLES
Receivables as of September 30, 2017 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 --$ --$ --$ 254,227$ 335,559$ --$ 589,786$
Contributions -- -- -- -- -- 449,437 449,437
Intergovernmental 564,373 207,531 -- -- -- -- 771,904
Other -- -- 1,282 -- -- 13,500 14,782
Gross receivables 564,373 207,531 1,282 254,227 335,559 462,937 1,825,909
Less: Allowance for
uncollectibles -- -- -- -- (33,556) -- (33,556)
Net Total Receivables 564,373$ 207,531$ 1,282$ 254,227$ 302,003$ 462,937$ 1,792,353$
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, 2017 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, 2017, there were no material delinquent taxes.
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017
41
NOTE 6 – INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS
The composition of interfund balances as of September 30, 2017 is as follows:
Receivable Fund
Capital Solid
General Transportation Improvements Stormwater Waste Total
General --$ 298,955$ 7,581,604$ 1,166,014$ 721,988$ 9,768,561$
Transportation 375,281 -- -- -- -- 375,281
Capital Improvements 18,036 -- -- -- -- 18,036
Stormwater 200,668 -- -- -- -- 200,668
Solid Waste 7,610 -- -- -- -- 7,610
Total 601,595$ 298,955$ 7,581,604$ 1,166,014$ 721,988$ 10,370,156$
Payable Fund
The outstanding balances between funds result mainly from the time lag between the dates that
(1) interfund goods and services are provided or reimbursable expenditures occur, (2)
transactions are recorded in the accounting system, and (3) payments between funds are made.
Interfund transfers:
Transfers Out Transfer In Amount
General Fund Capital Improvements 2,267,543$
General Fund Sanitary Sewer Construction 28,134
2,295,677$
Sanitary Sewer Construction General Fund 59,938$
Transfers are used to move unrestricted general fund revenues to finance various capital
projects in accordance with budgetary authorizations.
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017
42
NOTE 7 – CAPITAL ASSETS
Capital asset activity for the year fiscal ended September 30, 2017 was as follows:
Beginning Ending
Balance Increases Decreases Balance
Governmental Activities
Capital Assets, Not Being Depreciated
Land 23,941,979$ --$ --$ 23,941,979$
Construction in progress 7,492,482 3,768,781 -- 11,261,263
Total Capital Assets, Not Being Depreciated 31,434,461 3,768,781 -- 35,203,242
Capital Assets, Being Depreciated
Buildings 25,701,930 -- -- 25,701,930
Improvements other than buildings 35,380,619 814,369 -- 36,194,988
Furniture, fixtures and equipment 10,953,832 2,032,176 -- 12,986,008
Total Capital Assets, Being Depreciated 72,036,381 2,846,545 -- 74,882,926
Less: Accumulated Depreciation for
Buildings (6,933,118) (519,542) -- (7,452,660)
Improvements other than buildings (10,357,038) (1,439,383) -- (11,796,421)
Furniture, fixtures and equipment (8,636,453) (784,599) -- (9,421,052)
Total Accumulated Depreciation (25,926,609) (2,743,524) -- (28,670,133)
Total Capital Assets, Being Depreciated, Net 46,109,772 103,021 -- 46,212,793
Governmental Activities Capital Assets, Net 77,544,233$ 3,871,802$ --$ 81,416,035$
Business-type Activities
Capital Assets, Not Being Depreciated
Construction in progress --$ 695,770$ --$ 695,770$
Total Capital Assets, Not Being Depreciated -- 695,770 -- 695,770
Capital Assets, Being Depreciated
Stormwater utility system 12,149,408 164,535 -- 12,313,943
Sanitary Sewer system 18,808,259 -- -- 18,808,259
Total Capital Assets, Being Depreciated 30,957,667 164,535 -- 31,122,202
Less: Accumulated Depreciation for
Stormwater utility system (5,459,427) (385,915) -- (5,845,342)
Sanitary Sewer system (4,949,543) (989,908) -- (5,939,451)
Total Accumulated Depreciation (10,408,970) (1,375,823) -- (11,784,793)
Total Capital Assets, Being Depreciated, Net 20,548,697 (1,211,288) -- 19,337,409
Business-type Activities Capital Assets, Net 20,548,697$ (515,518)$ --$ 20,033,179$
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017
43
NOTE 7 – CAPITAL ASSETS (CONTINUED)
Depreciation expense was charged as functions/programs of the primary government as
follows:
Governmental Activities
General government 1,098,335$
Police 318,234
Fire 269,497
Public works 218,366
Building, zoning and planning 73,783
Parks and recreation 765,309
Total Depreciation Expense - Governmental Activities 2,743,524$
Business-type Activities
Stormwater 385,915$
Sanitary Sewer 989,908
Total Depreciation Expense - Business-Type Activities 1,375,823$
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017
44
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, 2017:
Beginning Ending Due Within
Balance Additions Reductions Balance One Year
Governmental Activities
Bonds Payable
Land acquisition and capital improvement
revenue bonds, Series 1999 3,035,000$ --$ (705,000)$ 2,330,000$ 740,000$
Capital improvement revenue refunding
bonds, Series 2011A 3,675,000 -- (705,000) 2,970,000 715,000
Capital improvement revenue refunding
bonds, Series 2011B 4,230,000 -- (635,000) 3,595,000 650,000
Capital improvement and land acquisition
revenue refunding bonds, Series 2011 1,100,000 -- (160,000) 940,000 170,000
Transportation tax revenue refunding
bonds, Series 2011 1,893,612 -- (196,736) 1,696,876 150,699
Road improvement revenue bonds,
Series 2006 1,676,258 -- (293,786) 1,382,472 300,353
School improvement revenue bonds,
Series 2012 5,034,628 -- (282,739) 4,751,889 --
School improvement revenue bonds,
Series 2014 4,325,000 -- (260,000) 4,065,000 265,000
Total Bonds Payable 24,969,498 -- (3,238,261) 21,731,237 2,991,052
Other Liabilities
Capital leases 147,901 1,905,021 (82,035) 1,970,887 489,311
Compensated absences 2,586,224 1,231,752 (1,133,506) 2,684,470 671,118
Net OPEB obligation 1,036,714 133,832 (10,412) 1,160,134 --
Net pension liability 3,596,548 2,428,474 (3,228,987) 2,796,035 --
Total Other Liabilities 7,367,387 5,699,079 (4,454,940) 8,611,526 1,160,429
Governmental Activities Long-
Term Liabilities 32,336,885$ 5,699,079$ (7,693,201)$ 30,342,763$ 4,151,481$
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, 2017
45
NOTE 8 – LONG-TERM DEBT (CONTINUED)
LAND ACQUISITION AND CAPITAL IMPROVEMENT REVENUE BONDS, SERIES 1999
On July 23, 1999, the Village issued $10,000,000 Land Acquisition and Capital Improvement
Revenue Bonds, Series 1999, the proceeds of which were used for the acquisition of property
and financing of the construction of the Civic Center project. The bonds mature on July 23,
2019 with final payment due on December 1, 2019. The Village has pledged non-ad valorem
revenues to secure payment of the principal and interest on the bonds. The bonds are due in
annual principal installments. Interest accrues at 4.715% per annum.
Debt service requirements to maturity are as follows:
Principal Interest Total
Fiscal Year Ending September 30
2018 740,000$ 92,414$ 832,414$
2019 775,000 56,698 831,698
2020 815,000 19,214 834,214
2,330,000$ 168,326$ 2,498,326$
CAPITAL IMPROVEMENT REVENUE REFUNDING BONDS, SERIES 2011A
On June 13, 2011, the Village issued $6,890,000 of Capital Improvement Revenue Refunding
Bonds, Series 2011A for the purpose of refunding the Village’s Capital Improvement
Revenue Bonds, Series 2000. The bonds mature on December 1, 2020. The Village has
pledged non-ad valorem revenues to secure payment of the principal and interest on the
bonds. The bonds are due in annual principal installments on each December 1, commencing
December 1, 2011. Interest accrues at 2.31% per annum.
Debt service requirements to maturity are as follows:
Principal Interest Total
Fiscal Year Ending September 30
2018 715,000$ 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
2,970,000$ 139,294$ 3,109,294$
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017
46
NOTE 8 – LONG-TERM DEBT (CONTINUED)
CAPITAL IMPROVEMENTS REVENUE REFUNDING BONDS, SERIES 2011B
On August 1, 2011, the Village issued $7,130,000 of Capital Improvement Revenue
Refunding Bonds, Series 2011B for the purpose of refunding the Village’s Capital
Improvement Revenue Bonds, Series 2002. The bonds mature on November 1, 2022. The
Village has pledged non-ad valorem revenues to secure payment of the principal and
interest on the bonds. The bonds bear interest on the outstanding principal balance from its
date of issuance payable quarterly on the first day of each February, May, August and
November commencing November 1, 2011, at an interest rate equal to 2.41% per annum.
Debt service to maturity is as follows:
Principal Interest Total
Fiscal Year Ending September 30
2018 650,000$ 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 715,000 15,123 730,123
2023 210,000 1,114 211,114
3,595,000$ 240,909$ 3,835,909$
CAPITAL IMPROVEMENT AND LAND ACQUISITION REVENUE REFUNDING BONDS, SERIES
2011
On August 1, 2011, the Village issued the $1,865,000 Capital Improvement and Land
Acquisition Revenue Refunding Bonds, Series 2011 for the purpose of refunding the
Capital Improvement and Land Acquisition Revenue Bonds, Series 2004. The Village has
pledged non-ad valorem revenues to secure payment of the principal and interest on the
bonds. The bonds mature on November 1, 2022. The bonds bear interest on the
outstanding principal balance from its date of issuance payable quarterly on the first day of
each February, May, August and November, commencing November 1, 2011, at an interest
rate equal to 2.41% per annum.
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017
47
NOTE 8 – LONG-TERM DEBT (CONTINUED)
CAPITAL IMPROVEMENT AND LAND ACQUISITION REVENUE REFUNDING BONDS, SERIES
2011 (CONTINUED)
Debt service requirements to maturity are as follows:
Principal Interest Total
Fiscal Year Ending September 30
2018 170,000$ 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 180,000 3,916 183,916
2023 50,000 301 50,301
940,000$ 63,382$ 1,003,382$
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 in the amounts of $508,734 and $221,106, respectively, to
secure payment of the principal and interest on the bonds. The bonds mature on July 1,
2025. The bonds bear interest on the outstanding principal balance from its date of
issuance payable quarterly on each January 1, April 1, July 1 and October 1 commencing
January 1, 2012, at an interest rate equal to 2.42% per annum.
Debt service requirements to maturity are as follows:
Principal Interest Total
Fiscal Year Ending September 30
2018 150,699$ 29,890$ 180,589$
2019 205,221 35,564 240,785
2020 210,232 30,553 240,785
2021 215,366 25,419 240,785
2022 220,625 20,160 240,785
2023-2025 694,733 27,622 722,355
1,696,876$ 169,208$ 1,866,084$
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017
48
NOTE 8 – LONG-TERM DEBT (CONTINUED)
ROAD IMPROVEMENT REVENUE BONDS, SERIES 2006
On December 14, 2006, the Village issued $4,000,000 Road Improvement Revenue Bonds,
Series 2006, for the purpose of financing a portion of the costs of road improvements within
the Village (Crandon Boulevard Improvements – Phase III), financing architectural,
engineering, environmental, legal, and other planning costs. The bonds mature on December
1, 2021. The Village has pledged toll revenues to secure payment of the principal and interest
on the bonds. Total principal and interest remaining on the bonds is $1,516,030. For the
current year, debt service and pledged revenues were $357,125 and $365,000, respectively.
The bonds are due in quarterly principal installments. Interest accrues at 4.05% per annum.
Debt service requirements to maturity are as follows:
Principal Interest Total
Fiscal Year Ending September 30
2018 300,353$ 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 109,795 1,607 111,402
1,382,472$ 133,558$ 1,516,030$
SCHOOL IMPROVEMENT REVENUE BONDS, SERIES 2012
On October 24, 2012, the Village issued $5,575,000 of School Improvement Revenue
Bonds, Series 2012 for the purpose of providing a portion of the financing of a permanent
secondary educational facility and recreational fields owned and operated by the School
Board of Miami-Dade County for Village residents located at the Mast Academy campus
as well as necessary renovations of the Key Biscayne K-8 Center, financing architectural,
engineering, environmental, legal, and other planning costs related thereto, and paying cost
of issuance of the bonds. The bonds mature on October 1, 2032. The bonds bear interest
on the outstanding principal balance from its date of issuance payable semiannually on
each April 1 and October 1 (the "interest payment dates") commencing April 1, 2013, at an
interest rate equal to 3.35% per annum. The bonds require the Village to appropriate in its
annual budget, from non-ad valorem revenues amounts sufficient to cover debt service.
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017
49
NOTE 8 – LONG-TERM DEBT (CONTINUED)
SCHOOL IMPROVEMENT REVENUE BONDS, SERIES 2012 (CONTINUED)
Debt service requirements to maturity are as follows:
Principal Interest Total
Fiscal Year Ending September 30
2018* --$ 79,690$ 79,690$
2019 281,633 154,663 436,296
2020 286,350 145,150 431,500
2021 291,146 135,477 426,623
2022 296,023 125,642 421,665
2023-2027 1,556,172 474,818 2,030,990
2028-2032 1,690,942 203,023 1,893,965
2033 349,623 5,952 355,575
4,751,889$ 1,324,415$ 6,076,304$
* Debt service payment due on October 1, 2017 was paid prior to fiscal year ended
September 30, 2017.
SCHOOL IMPROVEMENT REVENUE BONDS, SERIES 2014
On July 1, 2014, the Village issued $4,575,000 of School Improvement Revenue Bonds,
Series 2014 for the purpose of providing an additional portion of the financing of a
permanent secondary educational facility and recreational fields owned and operated by the
School Board of Miami-Dade County for Village residents located at the Mast Academy
campus as well as necessary renovations of the Key Biscayne K-8 Center, financing
architectural, engineering, environmental, legal, and other planning costs related thereto,
and paying cost of issuance of the bonds. The bonds mature on October 1, 2029. The
bonds bear interest on the outstanding principal balance from its date of issuance payable
semi-annually on each April 1 and October 1 (the "interest payment dates") commencing
October 1, 2014, at an interest rate equal to 2.76% per annum. The bonds require the
Village to appropriate in its annual budget, from non-ad valorem revenues amounts
sufficient to cover debt service.
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017
50
NOTE 8 – LONG-TERM DEBT (CONTINUED)
SCHOOL IMPROVEMENT REVENUE BONDS, SERIES 2014 (CONTINUED)
Debt service requirements to maturity are as follows:
Principal Interest Total
Fiscal Year Ending September 30
2018 265,000$ 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 295,000 81,834 376,834
2023-2027 1,605,000 282,348 1,887,348
2028-2030 1,065,000 59,340 1,124,340
4,065,000$ 827,544$ 4,892,544$
CAPITAL LEASES
The Village has entered into lease purchase agreements for financing the acquisition of
vehicles and equipment in the General Fund and Capital Improvement Fund. The lease
agreements qualify as capital leases for accounting purposes and have been recorded at the
present value of the future minimum lease payments as of the inception date.
Assets
Machinery and equipment 2,300,646$
Accumulated depreciation (665,452)
Carrying Value 1,635,194$
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017
51
NOTE 8 – LONG-TERM DEBT (CONTINUED)
CAPITAL LEASES (CONTINUED)
Future minimum lease payments and the present value of net minimum lease payments as
of September 30, 2017 are as follows:
Fiscal Year Ending September 30
2018 528,405$
2019 528,405
2020 494,272
2021 494,272
Total minimum lease payments 2,045,354
Less: amount representing interest 74,467
1,970,887$
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, 2017:
Beginning Ending Due Within
Balance Additions Reductions Balance One Year
Business-type Activities
Bonds and Loans Payable
Stormwater utility refunding and
improvement revenue bonds, Series 2013 5,645,000$ --$ (5,645,000)$ --$ --$
Stormwater utility refunding and
improvement revenue bonds, Series 2016 -- 5,668,152 (371,798) 5,296,354 --
Sewer improvement revenue
bonds, Series 2016 3,490,000 -- (322,077) 3,167,923 225,856
Revolving loan, 1996 167,484 -- (24,000) 143,484 24,617
Total Bonds and Loans Payable 9,302,484 5,668,152 (6,362,875) 8,607,761 250,473
Business-type Activities
Long-Term Liabilities 9,302,484$ 5,668,152$ (6,362,875)$ 8,607,761$ 250,473$
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017
52
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. Total principal due of $5,645,000 was paid in full during fiscal
year 2017, through the issuance of the Stormwater Utility Refunding and Improvement
Revenue Bonds, Series 2016.
STORMWATER UTILITY REFUNDING AND IMPROVEMENT REVENUE BONDS, SERIES 2016
On October 7, 2016, the Village issued $5,668,152 of Stormwater Utility Refunding and
Improvement Revenue Bonds, Series 2016 for the purpose of refunding the Village’s
Stormwater Utility Refunding and Improvement Revenue Bonds, Series 2013, which
provided the financing of improvements and replacements of drainage wells and outfalls
for the Village’s Stormwater Utility System. The Village has pledged stormwater utility
fees. Stormwater utility fees totaled $933,683 for the fiscal year ended September 30,
2017. The bonds bear interest on the outstanding balance from their date of issuance
payable semi-annually every October 1st and April 1st, commencing April 1, 2017, at an
interest rate equal to 2.35% per annum. The bond matures on October 1, 2030.
Debt service requirements to maturity are as follows:
Principal Interest Total
Fiscal Year Ending September 30
2018* --$ 62,504$ 62,504$
2019 354,619 120,842 475,461
2020 362,952 112,410 475,362
2021 371,482 103,780 475,262
2022 380,212 94,948 475,160
2023-2027 2,039,357 334,817 2,374,174
2028-2031 1,787,732 86,347 1,874,079
5,296,354$ 915,648$ 6,212,002$
* Debt service payment due on October 1, 2017 was paid prior to fiscal year ended
September 30, 2017.
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017
53
NOTE 8 – LONG-TERM DEBT (CONTINUED)
SEWER IMPROVEMENT REVENUE BONDS, SERIES 2016
On June 29, 2016, the Village issued $3,490,000 of Sewer Improvement Revenue Bonds,
Series 2016 for the purpose of refinancing the State Revolving Fund Loan, 2009. The
bonds require the Village to appropriate in its annual budget, from non-ad valorem revenue
amounts sufficient to cover debt service. The bonds mature on February 15, 2030. The
bonds bear interest on the outstanding principal balance from its date of issuance payable
semi-annually on each February 15 and August 15, at an interest rate equal to 1.97% per
annum.
Debt service requirements to maturity are as follows:
Principal Interest Total
Fiscal Year Ending September 30
2018 225,856$ 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 244,279 42,878 287,157
2023-2027 1,295,880 139,906 1,435,786
2028-2030 697,157 20,736 717,893
3,167,923$ 421,541$ 3,589,464$
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 2017 was $28,134 and state revenue sharing was
$323,844. The loan is payable in semi-annual payments over 20 years beginning on April 15,
2003 at an interest rate of 2.56% per annum. The loan matures on October 15, 2022.
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017
54
NOTE 8 – LONG-TERM DEBT (CONTINUED)
STATE REVOLVING FUND LOAN, 1996 (CONTINUED)
Debt service requirements to maturity are as follows:
Principal Interest Total
Fiscal Year Ending September 30
2018 24,617$ 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 27,254 880 28,134
Thereafter 13,890 178 14,068
143,485$ 11,254$ 154,739$
NOTE 9 – FUND BALANCE CLASSIFICATIONS
As of September 30, 2017, 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 committed and assigned balances
are established to fund current operations, such as working capital.
Nonspendable
Prepaid items 598,249$
Restricted
Building inspections 1,159,189
Fire code violations 369,322
Fire grant revenue (UASI) 53,326
Law enforcement seizures 368,754
1,950,591
Committed
Emergencies 4,000,000
Fire rescue transport fees 1,807,614
Labor negotiations 90,000
Open space land trust 6,136,726
12,034,340
Subtotal (Forward)14,583,180$
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017
55
NOTE 9 – FUND BALANCE CLASSIFICATIONS (CONTINUED)
Subtotal (Forward)14,583,180$
Assigned
Compensated absences 671,118
Working capital (surplus) 15,592,087
16,263,205
Total Fund Balance - General Fund 30,846,385$
Unassigned (Deficit)
Capital improvement plan (6,305,354)$
Total Fund Balance - Capital Improvements (6,305,354)$
Restricted
Transportation surtax 715,133$
Assigned 825,896
Total Fund Balance - Transportation Special Revenue 1,541,029$
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 $397,000 and $23,000, respectively. Amendments to the Plans must be
authorized by the Village Council.
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017
56
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, 2016. 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.
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.
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017
57
NOTE 11 – DEFINED BENEFIT PENSION PLAN (CONTINUED)
PLAN DESCRIPTION (CONTINUED)
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, 2016 (date of the latest actuarial valuation), Plan membership
consisted of the following:
Inactive plan members and beneficiaries currently receiving benefits 31
Inactive plan members entitled but not yet receiving benefits 5
Active plan members 59
Total Members 95
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.
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017
58
NOTE 11 – DEFINED BENEFIT PENSION PLAN (CONTINUED)
FUNDING POLICY (CONTINUED)
The Village’s (including the State) contribution rate was 16.47% of covered payroll for the
fiscal year ended September 30, 2017 which was determined by the October 1, 2015 actuarial
valuation.
Subsequent to year end, the Village was informed by the Florida Division of Retirement, that
the PERS failed to comply with certain provisions of Chapter 175 and 185, Florida Statutes
resulting in the withholding of the State 2016 premium tax monies in the amounts of
$140,927.10 and $265,846.33 for the Police and Fire, respectively, and is recorded as a
receivable from the Village in the statement of fiduciary net position. The Village has since
contributed any funding deficiency.
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, 2017 is $1,205,381, 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, 2017 there were nine
(9) participants in the Plan. The balance in the Plan at September 30, 2017 is $1,266,033,
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, 2017
59
NOTE 12 –NET PENSION LIABILITY OF THE VILLAGE
As of September 30, 2017, the Village reported a net pension liability (NPL) of $1,652,935,
which was measured as of September 30, 2016 (GASB 68 measurement date). In
accordance with GASB 67, information related to the PERS as of September 30, 2017 has
also been disclosed.
2017 2016
Total pension liability 38,994,690$ 35,667,966$
Plan fiduciary net position (37,341,755) (32,871,931)
Net pension liability 1,652,935$ 2,796,035$
Plan fiduciary net position as a percentage
of total pension liability 95.76% 92.16%
Changes in the Village’s net pension liability for the fiscal year ended September 30, 2017
is as follows:
Total
Pension
Liability
Plan
Fiduciary
Net Position
Net
Pension
Liability
Beginning Balances 33,239,492$ 29,642,944$ 3,596,548$
Changes for the Year:
Service cost 892,483 -- 892,483
Interest 2,655,690 -- 2,655,690
Differences between actual and expected experience (678,816) -- (678,816)
Assumption changes 368,874 -- 368,874
Benefit payments (570,278) (570,278) --
Refunds (32,769) (32,769) --
Other (release of excess state reserves) (206,710) -- (206,710)
Contributions - employer (from Village) -- 322,848 (322,848)
Contributions - employer (from State) -- 397,294 (397,294)
Contributions - employee (including buyback contributions) -- 606,697 (606,697)
Net investment income -- 2,574,564 (2,574,564)
Administrative expense -- (69,369) 69,369
Net Changes 2,428,474 3,228,987 (800,513)
Ending Balances 35,667,966$ 32,871,931$ 2,796,035$
Police Officers and Firefighters
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017
60
NOTE 12 –NET PENSION LIABILITY OF THE VILLAGE (CONTINUED)
SIGNIFICANT ACTUARIAL ASSUMPTIONS
The total pension liability of the Village was determined using the following actuarial
assumptions:
Measurement Date: September 30, 2017 September 30, 2016
Actuarial Valuation: October 1, 2016 October 1, 2014
Interest rates:
Single discount rate 7.75%7.80%
Inflation rate 2.75%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 RP-2000 Combined Healthy
Participant Mortality Table for pre-
retirement mortality and the RP-
2000 Mortality Table for Annuitants
for post-retirement mortality, with
mortality improvements projected to
all future years after 2000 using
Scale BB.
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
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.
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017
61
NOTE 12 –NET PENSION LIABILITY OF THE VILLAGE (CONTINUED)
LONG-TERM EXPECTED RATE OF RETURN (CONTINUED)
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, 2017 and 2016 are summarized in the following table:
Asset Class 2017 2016
Domestic equity 7.50%8.10%
International equity 3.60%3.10%
Fixed income 4.10%4.10%
Real estate 5.00%5.00%
Cash 0.00%0.00%
RATE OF RETURN
For the fiscal years ended September 30, 2017 and 2016, the annual money-weighted rate
of return on Plan investments, net of investment expense, was 13.02% and 9.03%,
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, 2017 and 2016, a single discount rate of 7.75%
and 7.80%, 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, 2017
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
6.75% 7.75% 8.75%
2017 5,748,901$ 1,652,935$ (1,793,726)$
6.80% 7.80% 8.80%
2016 6,525,062$ 2,796,035$ (356,130)$
PENSION EXPENSE AND DEFERRED OUTFLOWS OF RESOURCES AND DEFERRED INFLOWS OF
RESOURCES RELATED TO PENSIONS
For the fiscal year ended September 30, 2017, based on a September 30, 2016 measurement
date, the Village recognized pension expense of approximately $833,000 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 $ 937,715 $ --
Differences between expected and actual experience 206,749 (545,715)
Change of assumptions 515,468 (42,923)
Net difference between projected and actual
earnings on pension plan investments 1,447,147 (428,012)
Total $ 3,107,079 $ (1,016,650)
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017
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, 2016 in the amount of $937,715 will
be recognized as a reduction of the Village’s net pension liability in the fiscal year ended
September 30, 2018. The remaining amounts related to differences between projected and
actual earnings on pension plan investments are recognized over 5 years and the amounts
related to changes in assumptions and differences between expected and actual experience
are recognized over the average remaining service lives of all employees (5.1 years for
fiscal year September 30, 2017) as follows:
Fiscal Year Ending September 30 Amount
2018 366,973$
2019 421,241
2020 458,828
2021 (88,251)
2022 (6,077)
1,152,714$
NOTE 13 – OTHER POST-EMPLOYMENT BENEFITS
PLAN DESCRIPTION
The Village provides an optional single employer defined benefit post-employment healthcare
plan to eligible individuals. The plan allows its employees and their beneficiaries, at their own
cost, to continue to obtain health, dental and other insurance benefits upon retirement. The
benefits of the plan conform to Florida Statutes, which are the legal authority for the plan. The
plan has no assets and does not issue a separate financial report.
FUNDING POLICY AND ANNUAL OPEB COST
The Village does not directly make a contribution to the plan on behalf of retirees. Retirees
and their beneficiaries pay the same group rates as are charged to the Village for active
employees by its healthcare provider. However, the Village’s actuaries, in their actuarial
valuation, calculate an offset to the cost of these benefits as an employer contribution, based
upon an implicit rate subsidy. This offset equals the total age-adjusted costs paid by the
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017
64
NOTE 13 – OTHER POST-EMPLOYMENT BENEFITS (CONTINUED)
FUNDING POLICY AND ANNUAL OPEB COST (CONTINUED)
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 114,251$
Amortization of Unfunded Actuarial Accrued Liability 28,371
Annual Required Contribution (ARC)142,622
Interest of Net OPEB Obligation 36,285
Adjustment to ARC (45,075)
Annual OPEB Cost 133,832
Contributions Made (10,412)
Increase in Net OPEB Obligation 123,420
Net OPEB Obligation, Beginning of Year 1,036,714
Net OPEB Obligation, End of Year 1,160,134$
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 9/30/2017 9/30/2016 9/30/2015
Annual OPEB Cost 133,832$ 129,728$ 206,689$
Percentage of OPEB Cost Contributed 7.8% 2.8% 11.2%
Net OPEB Obligation 1,160,134 1,036,714 910,631
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017
65
NOTE 13 – OTHER POST-EMPLOYMENT BENEFITS (CONTINUED)
FUNDED STATUS AND FUNDING PROGRESS
The funded status of the plan as of September 30, 2017, based on the 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.
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 23
years)
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017
66
NOTE 13 – OTHER POST-EMPLOYMENT BENEFITS (CONTINUED)
ACTUARIAL METHODS AND ASSUMPTIONS (CONTINUED)
Actuarial assumptions:
Investment rate of return* 3.50% compounded annually
Projected salary increases* 6.00% - 9.40%
Payroll growth assumptions 3.5 %
*Includes inflation at 2.5% per year
Healthcare cost trend rate: 4.7%, initial Per Capital Cost trend rate.
NOTE 14 – RISK MANAGEMENT
The Village is exposed to various risks of loss related to torts, theft of, damage to and
destruction of assets, errors and omissions and natural disasters for which the Village
carries commercial insurance. There was no reduction in insurance coverage from
coverages in the prior year and there were no settlements that exceeded insurance coverage
for each of the past three years.
NOTE 15 – COMMITMENTS AND CONTINGENCIES
LITIGATION
The Village is involved in several lawsuits incidental to its operations, the outcome of
which, in the opinion of management and legal counsel, would not have a material adverse
effect on the financial condition of the Village.
GRANTS CONTINGENCY
Federal and State programs in which the Village participates are subject to audit by grantor
agencies. Any disallowed claims, including amounts already collected, may constitute a
liability of the applicable funds. In the opinion of management, future disallowances of
grant expenditures, if any, would not have a material adverse effect on the financial
condition of the Village.
REQUIRED SUPPLEMENTARY INFORMATION
Adjusted Variance
Actual Amounts with Final
Amounts Prior Year on a Budget -
on a GAAP Reserves/ Budgetary Positive
Original Final Basis Adjustments Basis (Negative)
Revenues
Property taxes 23,766,962$ 23,766,962$ 24,202,255$ --$ 24,202,255$ 435,293$
Utility taxes/communications
services tax 2,563,727 2,563,727 2,809,421 -- 2,809,421 245,694
Franchise fees 605,000 605,000 479,194 -- 479,194 (125,806)
Licenses and permits 1,635,000 1,635,000 1,239,116 -- 1,239,116 (395,884)
Intergovernmental 1,334,518 1,334,518 1,334,109 -- 1,334,109 (409)
Charges for services 3,407,800 3,407,800 3,591,999 -- 3,591,999 184,199
Interest 30,000 30,000 78,324 -- 78,324 48,324
Grants -- -- 59,412 -- 59,412 59,412
Miscellaneous income 52,000 52,000 184,489 -- 184,489 132,489
Total Revenues 33,395,007 33,395,007 33,978,319 -- 33,978,319 583,312
Expenditures
Current:
General government:
Elected officials 246,101 246,101 182,592 -- 182,592 63,509
Village Clerk 372,462 372,462 417,824 (45,362) 372,462 --
Administration 2,235,098 2,235,098 2,004,104 -- 2,004,104 230,994
Village Attorney 1,210,000 1,210,000 641,484 -- 641,484 568,516
Total general government 4,063,661 4,063,661 3,246,004 (45,362) 3,200,642 863,019
Public safety:
Police 6,925,401 6,925,401 6,694,466 -- 6,694,466 230,935
Fire 6,845,534 6,845,534 6,905,457 (59,923) 6,845,534 --
Total public safety 13,770,935 13,770,935 13,599,923 (59,923) 13,540,000 230,935
Public works 2,025,422 2,025,422 2,686,957 -- 2,686,957 (661,535)
Building, zoning and planning 2,050,363 2,050,363 2,491,141 (440,778) 2,050,363 --
Parks and recreation:
Parks 1,427,855 1,427,855 1,411,335 -- 1,411,335 16,520
Community center 2,691,883 2,691,883 2,764,921 (73,038) 2,691,883 --
Athletic division 801,569 801,569 911,981 (110,412) 801,569 --
Total parks and recreation 4,921,307 4,921,307 5,088,237 (183,450) 4,904,787 16,520
Debt service:
Principal 3,315,395 3,315,395 2,969,211 -- 2,969,211 346,184
Interest and fiscal charges 730,711 730,711 669,711 -- 669,711 61,000
Total Expenditures 30,877,794 30,877,794 30,751,184 (729,513) 30,021,671 856,123
Excess (Deficiency) of
Revenues over Expenditures 2,517,213 2,517,213 3,227,135 (729,513) 3,956,648 1,439,435
Other Financing Sources (Uses)
Appropriation of prior years':
Reserves - working capital -- -- -- 183,450 183,450 183,450
Reserves - building division -- -- -- 440,778 440,778 440,778
Reserves - comp. absences -- -- -- 105,285 105,285 105,285
Transfers in -- -- 59,938 -- 59,938 59,938
Transfers out (2,517,213) (2,517,213) (2,295,677) -- (2,295,677) 221,536
Total Other Financing Sources (Uses)(2,517,213) (2,517,213) (330,718) 729,513 398,795 (2,916,008)
Net Change in Fund Balances --$ --$ 2,896,417$ --$ 4,355,443$ (4,355,443)$
Budgeted Amounts
VILLAGE OF KEY BISCAYNE, FLORIDA
BUDGETARY COMPARISON SCHEDULE
GENERAL FUND
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017
REQUIRED SUPPLEMENTARY INFORMATION
See notes to budgetary comparison schedule.
67
VILLAGE OF KEY BISCAYNE, FLORIDA
REQUIRED SUPPLEMENTARY INFORMATION
NOTES TO BUDGETARY COMPARISON SCHEDULE
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017
68
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,
2017, 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, 2017.
NOTE 2 – RECONCILIATION OF GAAP BASIS TO BUDGETARY BASIS
Expenditures Reported on a GAAP Basis 30,751,184$
Adjustments for prior year reserves - Community Center (183,450)
Pension contribution shortfall from the State (59,923)
Payment for compensated absences (486,140)
Expenditures on a Budgetary Basis 30,021,671$
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
69
2017 2016 2015 2014
Total Pension Liability
Service cost 982,149$ 892,483$ 905,151$ 1,325,960$
Interest 2,815,914 2,655,690 2,423,657 2,505,808
Benefit changes -- -- -- (4,253,914)
Difference between actual and expected experience 17,729 (678,816) 413,544 (40,185)
Assumption changes 608,244 368,874 351,602 (96,578)
Benefit payments (1,060,547) (570,278) (653,498) (447,084)
Refunds (36,765) (32,769) (8,759) (99,486)
Other (release of excess state reserves)-- (206,710) (297,383) --
Net Change in Total Pension Liability 3,326,724 2,428,474 3,134,314 (1,105,479)
Total Pension Liability - Beginning 35,667,966 33,239,492 30,105,178 31,210,657
Total Pension Liability - Ending (a)*38,994,690$ 35,667,966$ 33,239,492$ 30,105,178$
Plan Fiduciary Net Position
Contributions - employer (from Village)937,715$ 322,848$ 383,181$ 844,637$
Contributions - employer (from State)-- 397,294 456,253 475,709
Contributions - employee (including buyback contributions) 599,086 606,697 579,425 639,478
Net investment income 4,090,514 2,574,564 (103,179) 2,632,785
Benefit payments (1,060,547) (570,278) (653,498) (447,084)
Refunds (36,765) (32,769) (8,759) (99,486)
Administrative expense (60,179) (69,369) (85,607) (86,629)
Net Change in Plan Fiduciary Net Position 4,469,824 3,228,987 567,816 3,959,410
Plan Fiduciary Net Position - Beginning 32,871,931 29,642,944 29,075,128 25,115,718
Plan Fiduciary Net Position - Ending (b)37,341,755$ 32,871,931$ 29,642,944$ 29,075,128$
Net Pension Liability - Ending (a) - (b)1,652,935$ 2,796,035$ 3,596,548$ 1,030,050$
Plan Fiduciary Net Position as a Percentage of Total Pension
Liability 95.76% 92.16% 89.18% 96.58%
Covered Employee Payroll 5,671,587$ 5,778,063$ 5,518,334$ 6,053,762$
Net Pension Liability as a Percentage of Covered Employee Payroll 29.14% 48.39% 65.17% 17.02%
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
70
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%
2017 937,715 937,715 **-- 5,671,587 16.53%
Valuation Date
Notes
Actuarial Cost Method
Amortization Method
Remaining Amortization Period
Asset Valuation Method
Inflation
Salary Increases
Investment Rate of Return
Experience studies
Retirement Age
Mortality
* 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, 2015
VILLAGE OF KEY BISCAYNE, FLORIDA
REQUIRED SUPPLEMENTARY INFORMATION
PENSION TRUST FUND
SCHEDULE OF VILLAGE CONTRIBUTIONS
** A portion of this amount (approximately $407,000) was funded by the Village after year-end as a result
of the withholding by the State 2016 premium tax monies.
9 years (single equivalent period)
Methods and Assumptions Used to Determine Contribution Rate for the fiscal year ending
September 30, 2017:
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.
2.75%
3.50% to 9.25% depending on age, including inflation
7.80%
Experience-based table of rates that are specific to the type of
eligibility condition.
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.
The most recent experience study was completed June 10, 2014.
This experience study examined actual demographic and economic
experience during the eight-year period ending September 30, 2013.
Based on the results of this experience study, salary scale,
withdrawal and retirement assumption changes were implemented
effective September 30, 2014.
71
2017 2016 2015 2014
Annual Money-Weighted Rate of Return,
Net of Investment Expense 13.02% 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,
72
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.
73
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Governmental activities
Net investment in capital assets 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$ 62,100,873$
Restricted 284,639 308,813 -- 1,170,247 500,137 3,138,445 3,455,654 2,405,158 3,425,433 2,665,724
Unrestricted 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 14,340,755
Total governmental activities net position 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 79,107,352
Business-type activities
Net investment in capital assets 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 13,463,710
Unrestricted (2,209,685) (346,721) 1,116,111 1,133,034 706,195 439,166 1,477,416 719,861 651,997 (599,305)
Total business-type activities net position 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 12,864,405
Total government
Net investment in capital assets 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 75,564,583
Restricted 284,639 308,813 -- 1,170,247 500,137 3,138,445 3,455,654 2,405,158 3,425,433 2,665,724
Unrestricted 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 13,741,450
Total Government Net Position 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$ 91,971,757$
VILLAGE OF KEY BISCAYNE, FLORIDA
NET POSITION BY COMPONENT
LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
74
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Expenses
Governmental activities:
General government 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$ 4,536,855$
Police 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 6,881,360
Fire 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 7,106,286
Public works 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 2,901,870
Building, zoning and planning 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 2,550,733
Parks and recreation 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 5,839,083
Interest on long-term debt 1,436,481 1,447,387 1,366,437 1,217,874 843,965 935,242 962,167 816,313 796,152 894,934
Total governmental activities 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 30,711,121
Business-type activities:
Stormwater 911,500 779,856 603,262 815,402 689,287 715,836 1,109,510 1,783,865 934,223 1,060,705
Sanitary sewer 9,046 144,922 39,178 197,474 1,234,279 1,133,209 1,126,907 1,120,166 1,137,592 994,042
Solid waste 619,823 618,155 585,927 546,534 563,995 574,686 583,083 582,943 840,730 792,044
Total business-type activities 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 2,846,791
Total government expenses 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$ 33,557,912$
Program revenues
Governmental activities:
Charges for services:
General government 1,320,004$ 237,315$ 181,992$ 169,307$ 177,574$ 140,587$ 160,800$ 157,868$ 147,693$ 183,901$
Police 14,203 38,181 (1,479) 1,763 375 1,455 4,700 20,011 -- 3,571
Fire 146,588 136,433 158,975 190,989 145,544 188,169 210,678 193,442 165,106 162,683
Building, zoning and planning 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 1,338,485
Parks and recreation 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 3,142,475
Operating grants and contributions 251,180 157,912 163,752 77,638 6,629 426,917 97,970 85,315 54,331 59,412
Capital grants and contributions -- 1,709,481 959,360 730,492 783,886 803,620 826,282 7,854,679 867,197 873,734
Total governmental activities program revenues 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 5,764,261
Business-type activities:
Charges for services:
Stormwater 499,101 491,314 484,932 979,865 935,352 958,114 907,324 939,798 908,269 933,683
Solid waste 530,803 635,580 615,480 597,431 588,449 592,480 591,079 600,688 652,455 651,344
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 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 1,585,027
Total program revenues 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$ 7,349,288$
(Continued)
VILLAGE OF KEY BISCAYNE, FLORIDA
LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
CHANGES IN NET POSITION
75
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Net (expense) revenue
Governmental activities (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)$ (24,946,860)$
Business-type activities 4,950,298 6,886,591 2,545,496 276,386 (963,760) (873,137) (1,321,097) (1,898,616) (1,187,645) (1,261,764)
Total net expense (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)$ (26,208,624)$
General revenues
Governmental activities:
Taxes:
Property taxes 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$ 24,202,255$
Utility taxes 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 2,110,494
Franchise fees 1,064,666 992,997 1,006,415 735,519 846,252 780,245 574,639 595,196 603,889 479,194
Communications services tax 1,226,423 1,091,734 1,029,087 964,324 946,399 1,010,931 917,449 862,165 753,385 698,927
Intergovernmental 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 1,555,215
Investment earnings 346,531 44,737 21,346 37,254 37,985 16,722 34,991 47,004 111,484 78,443
Miscellaneous -- 91,232 131,847 147,065 212,697 1,627,479 148,140 139,196 81,516 184,489
Transfers (28,134) (164,502) (212,308) (28,134) (28,134) (28,134) (257,134) (343,884) (382,883) 31,804
Total governmental activities 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 29,340,821
Business-type activities:
Investment earnings 48,202 21,303 1,974 2,162 587 659 5,551 3,911 5,986 24,282
Capital Contributions from General Fund -- -- -- -- -- -- -- -- -- 221,472
Transfers 28,134 164,502 212,308 28,134 28,134 28,134 257,134 343,884 382,883 (31,804)
Total business-type activities 76,336 185,805 214,282 30,296 28,721 28,793 262,685 347,795 388,869 213,950
Total general revenues 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$ 29,554,771$
Change in Net Position
Governmental activities 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$ 4,393,961$
Business-type activities 5,026,634 7,072,396 2,759,778 306,682 (935,039) (844,344) (1,058,412) (1,550,821) (798,776) (1,047,814)
Total change in Net Position 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$ 3,346,147$
CHANGES IN NET POSITION
(Continued)
LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
VILLAGE OF KEY BISCAYNE, FLORIDA
76
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
General fund
Non-spendable --$ --$ --$ 305,730$ 303,918$ 272,330$ 353,823$ 268,176$ 443,084$ 598,249$
Restricted -- -- -- 1,170,247 1,054,070 1,466,704 1,574,817 1,875,857 2,795,695 1,950,591
Committed -- -- -- 12,039,224 4,858,269 5,065,439 5,214,654 13,538,053 11,606,197 12,034,340
Assigned -- -- -- 4,028,870 8,178,544 10,852,640 11,756,540 11,870,006 13,104,992 16,263,205
Reserved 11,298,178 12,318,533 15,286,689 -- -- -- -- -- -- -
Unreserved -- -- -- -- -- -- -- -- -- --
Total General Fund 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 30,846,385
All other governmental funds
Committed -- -- -- 3,665,259 6,060,286 4,240,104 4,371,204 3,188,871 629,740 --
Unassigned (deficit) -- -- -- (1,077,816) (690,343) (278,254) (314,462) -- (2,114,581) (6,305,354)
Restricted -- -- -- -- 573,701 1,671,741 470,334 529,301 -- 715,133
Assigned 59,404 414,264 -
Unreserved, reported in:
Special revenue fund (2,701,623) (1,501,382) (1,299,432) -- -- -- -- -- -- 825,896
Capital projects funds 4,783,222 6,875,361 5,195,557 -- -- -- -- -- -- --
Total Other Governmental Funds 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) (4,764,325)
Total Governmental Funds 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$ 26,082,060$
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
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Revenues
Ad valorem taxes 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$ 24,202,255$
Franchise fees 1,064,666 992,997 1,006,415 735,519 846,252 780,245 574,639 595,196 603,889 479,194
Utility taxes/communication services tax 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 2,809,421
Licenses and permits 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 1,239,116
Intergovernmental revenue 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 2,428,949
Charges for services 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 3,591,999
Grants 251,180 167,873 425,339 77,638 6,629 426,917 97,970 85,315 54,331 59,412
Investment income 338,528 44,737 21,346 37,254 37,985 16,722 34,991 47,004 111,484 78,443
Contributions -- -- -- -- -- -- -- 7,000,000 -- --
Miscellaneous 8,003 26,232 131,848 147,065 212,697 1,627,479 148,140 139,196 81,516 184,489
Total revenues 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 35,073,278
Expenditures
Current:
General government 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 3,265,030
Fire 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 6,882,673
Police 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 6,621,521
Public works 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 2,683,504
Building, planning and zoning 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 2,476,950
Parks and recreation 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 5,073,774
Capital outlay 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 6,567,150
Intergovernmental:
Payment under interlocal agreement -- -- -- -- -- -- 4,574,703 8,545 2,390,330 --
Debt service:
Principal 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 3,459,733
Interest and other fiscal charges 1,444,576 1,450,649 1,386,913 1,520,433 828,393 913,409 875,949 973,012 822,575 777,099
Total expenditures 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 37,807,434
Excess (deficiency) of revenues over expenditures 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) (2,734,156)
Other financing sources (uses)
Transfers in 4,533,094 3,236,194 -- -- 5,816,222 -- 904,093 1,855,623 4,260,203 2,327,481
Transfers out (4,561,228) (3,400,696) (212,308) (28,134) (5,844,356) (28,134) (1,161,227) (2,199,507) (4,643,086) (2,295,677)
Bonds issued -- -- -- -- -- 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 -- 1,905,021
Total other financing sources (uses)(28,134) (99,502) (23,864) 293,547 575,866 46,941 4,337,866 (213,884) (382,883) 1,936,825
Net Change in Fund Balances 2,235,902$ 4,312,735$ 1,490,302$ 948,700$ 206,931$ 2,952,259$ 136,207$ 7,902,757$ (4,450,277)$ (797,331)$
Debt service as a percentage
of non-capital expenditures 14% 14% 15% 16% 13% 13% 11% 14% 14% 14%
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
2008 19,769,976$ 992,997$ 1,910,741$ 3,047,844$ 1,091,734$ 26,813,292$
2009 17,832,874 1,006,415 1,655,032 2,089,015 1,029,087 23,612,423
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
2017 24,202,255 479,194 2,110,494 2,428,949 698,927 29,919,819
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
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
2017 7,875,742,931 425,303,529 38,238,417 8,339,284,877 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
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
2017 2016 3.000 - 3.000 4.667 0.400 5.067 6.774 0.220 6.994 0.032 0.128 0.934 16.154
(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 $1,000 of assessed value.
Sources: Village of Key Biscayne Finance Department and Miami-Dade County Property Appraiser's Office.
81
Percent of Percent of
Total Total
Net Village Net Net Village Net
Assessed Assessed Assessed Assessed
Taxpayer Value Rank Value Taxpayer Value Rank Value
GB JT Hotel Partners LP 70,200,000$ 1 0.84% SBR Fortune Associates 48,975,240$ 1 0.76%
EDW A McCarthy-Archbishop 38,214,080 2 0.46% GB Hotel Partners LTD 46,000,000 2 0.72%
Red Dragon's Sands LTD 31,228,584 3 0.37% EDW A McCarthy - Archbishop 23,587,659 3 0.37%
Galleria of Key Biscayne Inc 28,000,000 4 0.34% Galleria if Key Biscayne Inc 20,342,084 4 0.32%
Timothy Bryan 22,565,090 5 0.27% Red Dragon's Sands LTD 16,262,248 5 0.25%
United Real East Ventures Inc 21,159,478 6 0.25% United Real Estate Ventures Inc 13,852,526 6 0.22%
Edgardo DeFortuna 19,906,254 7 0.24% Key Biscayne Properties LLC 13,758,300 7 0.21%
Key Biscayne Presbyterian Church 18,044,782 8 0.22% 260 Cape FLA LLC 13,470,750 8 0.21%
240 Crandon Investments LLC 16,500,000 9 0.20% 500 Bay Lane LLC 13,229,323 9 0.21%
Boca Breeze LLC 16,265,234 10 0.20% Tesaurus Holdings Inc 12,770,650 10 0.20%
282,083,502$ 3.38%222,248,780$ 3.47%
2017 2008
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
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%
2017 25,017,855 24,202,255 96.74%-- 24,202,255 96.74%
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 Capital Loans Revenue Loans Household Per
September 30, Bonds Bonds Leases Payable Bonds Payable Total Income (1) Capita
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 -- 30,897,605 307,933 -- 6,255,000 3,946,308 41,406,846 0.28% 3,354
2015 -- 28,101,157 311,176 -- 5,955,000 3,736,933 38,104,266 0.31% 2,986
2016 -- 24,969,498 147,901 -- 9,135,000 167,484 34,419,883 0.42% 2,671
2017 -- 21,731,237 1,970,887 -- 8,464,307 143,485 32,309,916 0.40% 2,500
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 23,702,124$ 100.00% 23,702,124$
Overlapping debt:
Miami-Dade County 1,517,832,100 2.48% 37,583,591
Miami-Dade County School Board 474,172,550 1.36% 6,457,637
Subtotal, Overlapping Debt 44,041,228
Total Direct and Overlapping Debt 67,743,352$
(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.
2017
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
2008 10,657,548$ 2,051,307$ 1,450,649$ 3.04
2009 10,100,329 2,140,684 1,386,913 2.86
2010 10,854,660 2,348,506 1,520,433 2.81
2011 11,549,163 2,436,139 828,393 3.54
2012 13,925,507 2,531,116 913,409 4.04
2013 19,683,695 2,716,772 875,949 5.48
2014 19,683,695 2,920,699 973,012 5.06
2015 19,683,695 2,920,699 973,012 5.06
2016 12,467,937 3,294,521 822,575 3.03
2017 10,871,023 3,459,733 777,099 2.57
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)
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%
2017 12,924 129,321 83,093 4.7%
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 120 3 not known 105 4 not known
Total 1,870
All remaining employers are of an extremely small number
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
2017 2008
CURRENT YEAR AND NINE YEARS AGO
89
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Number of Employees
General government 6 8 7 7 7 7 7 9 10 19
Public safety 72 69 70 68 69 74 74 77 78 76
Building, planning and zoning 13 13 13 13 15 17 17 14 14 14
Public works 4 4 4 4 4 4 4 5 4 5
Parks and recreation 7 10 10 10 10 12 10 9 10 11
Total Number of Employees 102 104 104 102 105 114 112 114 116 125
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 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Public safety:
Police:
Police personnel and officers 30 31 32 30 30 33 34 36 38 35
Police calls for service 36,190 37,002 34,935 37,646 31,214 26,836 24,556 30,475 29,427 32,031
Parking violations 776 824 523 563 638 676 440 506 552 2,287
Traffic violations 946 975 1,425 1,269 1,542 1,875 846 939 956 1,531
Fire:
Fire personnel 42 38 38 38 39 41 40 41 40 41
Fire incidents 1,006 1,012 1,556 1,841 1,369 1,896 1,763 1,490 1,908 1,529
Fire inspections performed 305 229 267 469 323 469 739 667 770 995
Planning and development:
Building permits issued 3,620 3,650 4,371 3,723 3,402 3,885 3,876 3,684 3,501 3,746
Business tax receipts issued 978 1,095 1,129 1,165 1,187 937 987 1,097 1,219 1,088
Culture and recreation:
Number of building users 4,673 4,268 3,990 4,127 4,338 4,251 4,041 4,110 4,179 4,274
Solid waste:
Residential accounts 1,299 1,298 1,302 1,292 1,264 1,254 1,250 1,272 1,260 1,251
Sources: Various Village Departments.
VILLAGE OF KEY BISCAYNE, FLORIDA
OPERATING INDICATORS BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
91
Function/Program 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
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 4 4
Parks acreage 9 9 9 9 9 9 9 9 10 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, 2017, 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 7, 2018.
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 7, 2018
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, 2017, and have issued our report thereon dated
June 7, 2018
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 Reporting Requirements
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, AT-C 315, regarding
compliance requirements in accordance with Chapter 10.550, Rules of the Auditor General.
Disclosures in those reports, which are dated June 7, 2018, 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 and Management
Section 10.554(1)(i)5.a. and 10.556(7), Rules of the Auditor General, require us to apply
appropriate procedures and communicate 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 for the Village. 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. Our assessment was performed as of the fiscal year end.
Section 10.554(1)(i)2., Rules of the Auditor General, requires that we communicate any
recommendations to improve financial management. In connection with our audit, we did have
such recommendations reported in Appendix A to this letter.
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 communicate the results of our determination as to whether the
annual financial report for the Village for the fiscal year ended September 30, 2017, 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,
2017. In connection with our audit, we determined that these two reports were in agreement.
Additional Matters
Section 10.554(1)(i)3., Rules of the Auditor General, requires us to communicate 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 note 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, 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 7, 2018
VILLAGE OF KEY BISCAYNE, FLORIDA
APPENDIX A – CURRENT YEAR AND PRIOR YEARS RECOMMENDATIONS TO
IMPROVE FINANCIAL MANAGEMENT
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017
97
MLC 2017-001 – NON-COMPLIANCE WITH PROVISION OF CHAPTER 175 AND 185, FLORIDA
STATUTE
Observation
As part of our audit, we were made aware by the Florida Division of Retirement that the Village
of Key Biscayne Police Officers and Firefighters Retirement Plan, did not meet the annual
submittal deadline requirements stipulated in Florida Statute Chapter 185, Section 185.221(2)(a)
Chapter 175, and Section 175.261(1)(a). As such, the State of Florida withheld fiscal year 2016
premium tax monies from the Plan which would have been accounted for as a contribution for
fiscal year 2017. As a result, the Village had to cover the shortfall in the actuarial required
funding of the Plan for fiscal year 2017 of approximately $407,000.
Recommendation
We recommend, the Pension Board of Trustee review the internal process over timely and
accurate preparation of reports necessary to be submitted to the Florida Division of Retirement to
ensure compliance with Chapter 175 and 185, Florida Statute.
Management Response
We agree with this finding and have addressed the issue with the Pension Board of Trustees.
Because of this serious non-compliance matter, the Village was required to absorb the financial
impact which caused an unexpected burden to our fund balance. It is managements understanding
that additional support staff has been hired to assist the Pension Administrator prepare the necessary
reports to ensure compliance with State Statutes.
VILLAGE OF KEY BISCAYNE, FLORIDA
APPENDIX A – CURRENT YEAR AND PRIOR YEARS RECOMMENDATIONS TO
IMPROVE FINANCIAL MANAGEMENT
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017
98
MLC 2017-002 – UNTIMELY CLOSING OF FINANCIAL RECORDS RELATED TO THE PENSION
FUND.
Observation
The Village’s year-end financial closing process was delayed because the Pension Administrator
did not perform some important procedures on time. Regarding the Village of Key Biscayne
Police Officers and Firefighters Retirement Plan, there were delays in producing closing entries,
trial balances, schedules, reconciliations, account analyzes, and other financial reports needed by
Village management and the auditors.
Recommendation
We believe that the pension year-end closing could proceed more quickly by developing a
closing schedule that indicates who will perform each procedure and when completion of each
procedure is due and required to be accomplished. The timing of specific procedures could be
coordinated with the timing of the Village’s management's need for the information. The due
dates should be monitored to determine that they are being met.
Management Response
We agree with this finding. Management will suggest to the Pension Board of Trustees that they
closely monitor and coordinate with the Pension Administrator on a quarterly basis to determine
whether year-end closing procedures are on schedule and can be completed in a timely manner.
Furthermore, we will require that the Pension Board of Trustees advise the Village of any
foreseeable delays prior to year-end.
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
99
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, Local Government Investment Policies for the fiscal year ended
September 30, 2017. Management of the Village 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, 2017.
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 7, 2018