HomeMy Public PortalAboutCAFR 2018.pdfVILLAGE OF KEY BISCAYNE, FLORIDA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FISCAL YEAR ENDED SEPTEMBER 30, 2018
VILLAGE OF KEY BISCAYNE, FLORIDA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2018
Prepared by:
THE FINANCE DEPARTMENT
VILLAGE OF KEY BISCAYNE, FLORIDA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2018
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) 4-13
Basic Financial Statements
Government -Wide Financial Statements:
Statement of Net Position 14
Statement of Activities 15
Fund Financial Statements:
Governmental Fund Financial Statements:
Balance Sheet 16
Statement of Revenues, Expenditures and Changes in Fund Balances 17
Reconciliation of the Statement of Revenues, Expenditures and Changes in
Fund Balances of Governmental Funds to the Statement of Activities 18
Proprietary Fund Financial Statements:
Statement of Net Position 19
Statement of Revenues, Expenses and Changes in Net Position 20
Statement of Cash Flows 21
Fiduciary Fund Financial Statements:
Statement of Fiduciary Net Position 22
Statement of Changes in Fiduciary Net Position 23
Notes to Basic Financial Statements 24-69
Required Supplementary Information (Other Than MD&A)
Budgetary Comparison Schedule — General Fund 70
Budgetary Comparison Schedule — Transportation Special Revenue Fund 71
Budgetary Comparison Schedule — PROS Land Trust Special Revenue Fund 72
Notes to Budgetary Comparison Schedule 73
Schedule of Changes in the Total OPEB Liability and
Related Ratios — Other Post -Employment Benefits 74
Schedule of Changes in the Village's Net Pension Liability and
Related Ratios — Pension Trust Fund 75
Schedule of Village Contributions — Pension Trust Fund 76
Schedule of Investment Returns — Pension Trust Fund 77
Government Auditing Standards
VILLAGE OF KEY BISCAYNE, FLORIDA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2018
TABLE OF CONTENTS
Schedule of Findings and Questioned Costs 105-106
Management Letter in Accordance with the Rules of the Auditor General of the
State of Florida 107-108
Independent Accountants' Report on Compliance Pursuant to Section 218.415
Florida Statutes 109
INTRODUCTORY SECTION
VILLAGE OF KEY BISCAYNE
Village Council
Michael W. Davey, Mayor
Allison McCormick, Vice Mayor
Luis Lauredo June 28, 2019
Edward London
Brett Moss
Katie Petros
Ignacio J. Segurola
To the Honorable Mayor, members of the Village
Council and Citizens of the Village of Key Biscayne:
Florida Statutes require that all units of local government publish a complete
set of financial statements presented in conformity with Generally Accepted
Accounting Principles (GAAP) in the United States and audited in accordance
with auditing standards generally accepted in the United States and in
accordance with Government Auditing Standards by a firm of licensed
certified public accountants. Pursuant to that requirement, we hereby present
the Comprehensive Annual Financial Report (CAFR) of the Village of Key
Biscayne for the fiscal year ended September 30, 2018.
This report consists of management's representation concerning the finances
of the Village of Key Biscayne. Consequently, management assumes full
responsibility for the completeness and reliability of all of the information
presented in the Report. To provide reasonable basis for making these
representations, management of the Village of Key Biscayne has established a
comprehensive internal framework that is designed both to protect the
Village's assets from loss, theft, or misuse and to compile sufficient reliable
information for the preparation of the Village of Key Biscayne's financial
statements in conformity with GAAP. Because the cost of internal controls
should not outweigh their benefits, the Village of Key Biscayne's
comprehensive framework of internal controls has been designed to provide
reasonable, rather than absolute, assurance that the financial statements will be
free from material misstatement. As management, we assert that, to the best of
our knowledge and belief, this financial report is complete and reliable in all
material respects.
The firm of Marcum LLP, licensed certified public accountants, has audited
the Village of Key Biscayne's financial statements. The goal of the
independent audit was to provide reasonable assurance that the basic financial
statements of the Village of Key Biscayne for the fiscal year ended September
30, 2018, are free of material misstatement.
i
88 West McIntyre Street • Suite 200 • Key Biscayne, Florida 33149 • (305) 365-5506 • Fax (305) 365-8914
MISSION STATEMENT:"TO PROVIDE A SAFE, QUALITY COMMUNITY ENVIRONMENT FOR ALL ISLANDERS THROUGH RESPONSIBLE GOVERNMENT."
www.keybiscayne.fl.gov
The independent audit involved examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements; assessing the accounting principles used and significant
estimates made by management; and evaluating the overall financial statement presentation.
The independent auditor concluded, based upon the audit, that there was a reasonable basis for
rendering an unmodified opinion that the Village of Key Biscayne's financial statements for the
fiscal year ended September 30, 2018, are fairly presented in conformity with GAAP. The
independent auditors' report is presented as the first component of the financial section of this
report.
GAAP requires that management provide a narrative introduction, overview, and analysis to
accompany the basic financial statements in the form of Management's Discussion and Analysis
(MD&A). This letter of transmittal is designed to complement the MD&A and should be read in
conjunction with it. The Village of Key Biscayne' s MD&A can be found immediately following
the independent auditors' report.
Profile of the Government
The Village of Key Biscayne, incorporated in 1991, is located on the southernmost barrier island
of the United States, Miami -Dade County, Florida, approximately 7.5 miles off the coast of Miami,
Florida. The Village of Key Biscayne occupies a land area of 1.25 square miles situated between
Crandon Park and Bill Baggs State Recreation Area. The Village serves a population of 13,301.
The Village of Key Biscayne receives tax levies on real and personal property located inside its
boundaries.
The Village of Key Biscayne operates under the council-manager form of government.
Policymaking and legislative authority are vested in a governing council consisting of the mayor
and six other council members. The Council is responsible for, among other things, passing
ordinances and resolutions, adopting the annual budget, appointing the Village Manager, the
Village Clerk, and the Village Attorney. The Village Manager is responsible for carrying out the
policies and ordinances/resolutions of the Council, for overseeing the daily operations of the
government, and for appointing the heads of various departments.
The Village of Key Biscayne offers a wide range of services, including police; fire and emergency
medical service; public works; a full service building, planning and zoning department; parks and
recreation activities; solid waste collection; and a comprehensive storm water management system.
Certain other services are provided through the Miami Dade County Public Schools and through
Miami -Dade County. The County provides library, water and sewer, and public transportation,
among other services.
The annual budget serves as a foundation for the Village of Key Biscayne's financial planning and
control. All departments of the Village are required to submit requests for appropriations to the
Village Manager and these requests are the initiation of developing the proposed budget. The
Village Manager then presents this proposed budget to the Council for review. The Council is
required to hold public hearings on the proposed budget and to adopt a final budget no later than
September 30th, the close of the Village's fiscal year. The appropriated budget is prepared by fund
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and department. No department may legally expend in excess of the amount appropriated for that
department within an individual fund. The Village manager may make transfers of appropriations
within a department. Transfers of appropriations between departments or funds require the
approval of the Village Council. The Village Council approves supplemental appropriations.
Budget -to -actual comparisons are provided in this report for the general fund for which an
appropriated annual budget has been adopted. The General Fund, budget -to -actual report, is
presented in the required supplementary information section of this report.
Local Economy
The Village of Key Biscayne enjoys a favorable economic environment and local indicators point
to continued future stability. This exclusive community is comprised of well-educated and
involved citizens who take a genuine interest in the social, business, cultural, and governing
aspects of their Village. The Village is comprised of affluent exclusive residential housing stock
and shopping centers. There is no industrial area in the community.
Expenditures/Long-Term Financial Planning
The Village utilizes a comprehensive living projection five years into the future to assess revenue
trends and expenditure needs to assure a balanced stable financial program, avoiding millage rate
increases while addressing the various goals and objectives of the community. Additionally, the
Village has modified its 5 -Year Capital Plan by prioritizing needs based on its expected available
resources determined by its 5 -Year financial forecast. This effort is also identifying capital
purchases that will be needed to continue its critical core public safety services, as well as other
departmental needs.
Financial Policies
The Village of Key Biscayne has policies on Debt Limitation, Emergency Reserve Funds, and
Commitments and Assignments of surplus funds. The allocation of surplus funds between
Committed and Assigned fund balance is made at the discretion of the Village Council. Other
externally restricted funds are noted as Restricted.
Awards and Acknowledgements
The Government Finance Officers Association (GFOA) awarded a Certificate of Achievement for
Excellence in Financial Reporting to the Village of Key Biscayne for its Comprehensive Annual
Financial Report (CAFR) for the fiscal year ended September 30, 2017. This was the twenty-fifth
consecutive year that the Village received this award. In order to be awarded a Certificate of
Achievement, the government published a readable and efficiently organized CAFR. This report
satisfied both GAAP and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe that our current
CAFR continues to meet the Certificate of Achievement Program's requirements and are
submitting it to the GFOA to determine its eligibility for another certificate.
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The preparation of this report would not have been possible without the efficient and dedicated
services of the entire staff of all departments of the Village of Key Biscayne. We would like to
express our appreciation to all members of 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 effort 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,
Andrea Agha, Village Manager Christopher Wallace, Interim CFO
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VILLAGE OF KEY BISCAYNE, FLORIDA
VILLAGE OFFICIALS
As of SEPTEMBER 30, 2018
VILLAGE COUNCIL
Michel W. Davey, Mayor
Allison McCormick, Vice Mayor
Edward London, Councilman
Ignacio J. Segurola, Councilman
Brett G. Moss, Councilman
Kathleen Petros, Councilwoman
Luis Lauredo, Councilman
VILLAGE MANAGER
Andrea Agha
VILLAGE CLERK
Jennifer Medina, CMC
VILLAGE ATTORNEY
Weiss Serota Helfnan Pastoriza Cole & Boniske, P.A.
FINANCE DIRECTOR
Christopher Wallace, Acting Finance Director
INDEPENDENT AUDITORS
Marcum LLP
v
G�9
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Resented to
Village of Key Biscayne
n
Florida
For its Comprehensive Annual
Financial. Report
for the Fiscal Year Ended
September tember 30. 2017
tievt4.,"
Executive Direct° CEO
vi
ORGANIZATION CHART
2018
VOTERS
OF
KEY BIS A YNE
Village
Council
Village Clerk
Special Master
Village Manager
Loco! Prann'ng
Agency
Village Attorney
Chief of
Staff/Deputy
Clerk
Police/fire
Retirerrrent
Board
Department of
Building,
Zoning and
Planning
Building
Zoning
Planning
Departments of
Public Safety
Code Enforcement
Public Works
Fire Rescue
Police
Department of
Recreation
!Special Events
Sports 1
Athletics
Programs
Tours
Senior
Services
Deparbnent of
finance and
Administrative
Services
finances'
Acceuntin
Personae !
Benefits
Risk
Mane ment
vii
FINANCIAL SECTION
INDEPENDENT AUDITORS' REPORT
Report on the Financial Statements
Management’s Responsibility for the Financial Statements
Auditors’ Responsibility
Government Auditing
Standards,
Opinions
Other Matters
Required Supplementary Information
Other Information
Other Reporting Required by Government Auditing Standards
Government Auditing Standards
Government Auditing
Standards
MANAGEMENT'S DISCUSSION AND ANALYSIS
(MD&A)
statement of net position
net position
statement of activities
regardless of the timing of related cash flows
(governmental activities)
(business-
type activities).
primary government
fund
Governmental funds
governmental activities
near-term inflows and outflows of
spendable resources balances of spendable resources
governmental activities
governmental funds governmental activities
essential
not
As demonstrated in Table A-1, Summary of Net Position, the Village's Net Position increased by
$3,339,001. This resulted from reductions in long-term liabilities provided for with resources from the
current year, which was offset by reductions in current assets, mostly restricted cash and investments.
Capital Assets increased by $12.1 million in the Governmental Activities, but decreased by a similar
amount, $12.8 million, in the Business -type activities. Most of this reflects closing out the Sanitary Sewer
Construction proprietary fund to Governmental Activities. The difference of $576,731 reflects ordinary
depreciation of existing Capital Assets. Unrestricted Net Position increased by $5.1 million, mostly from
the retirement of debt through the use of resources provided currently by the various budgets of the Village.
Table A - 2
Summary of Changes in Net Position
Governmental Activities
Business -type Activities Total
2018
2017
2018 2017
2018 2017
Revenues
Programrevenues:
Charges for services $ 5,015,541 $ 4,831,115 $
Operating grants and contributions 53,210 59,412
Capital grants and contributions 1,733,691 873,734
General revenues:
Property taxes 24,992,663 24,202,255
Utility taxes 2,136,221 2,110,494
Communications services tax 734,422 698,927
Franchise fees 655,599 479,194
Unrestricted intergovernmental revenue 2,595,087 1,555,215
Investment income and miscellaneous 282,153 262,932
Total Revenues 38,198,587 35,073,278
Transfers 9,545,452
Total General Revenues, Contributions, and
Transfers 47,744,039 35,073,278
Expenses
General government
Public Safety
Parks and Recreation
Public Works
Building, Zoning and Planning
Interest on long-term debt
Stormwater
Solid waste collection
Sanitary sewer construction
Total Expenses
Change in Net Position before contribution
and transfers
Capital Contributions
Transfers
Changes in Net Position
Net Position, Beginning, as previously reported
Prior period adjustment
Net Position, Beginning, restated
Net Position - Ending
5,221,656
15,309,618
6,944,248
4,188,854
2,366,496
701,558
4,536,855
13,987,646
2,901,870
2,550,733
5,839,083
894,934
1,782,803 $
1,585,027 $ 6,798,344 $ 6,416,142
53,210 59,412
1,733,691 873,734
- 24,992,663
- 2,136,221
- 734,422
- - 655,599
- 2,595,087
23,278 24,282 305,431
24,202,255
2,110,494
698,927
479,194
1,555,215
287,214
1,806,081 1,609,309 40,004,668 36,682,587
9,545,452
1,806,081 1,609,309 49,550,120 36,682,587
1,234,916
9,545,452
698,321
1,060,705
994,042
792044
5,221,656
15,309,618
6,944,248
4,188,854
2,366,496
701,558
1,234,916
9,545,452
698,321
4,536,855
13,987,646
2,901,870
2,550,733
5,839,083
894,934
1,060,705
994,042
792,044
34,732,430 30,711,121 11,478,689 2,846,791 46,211,119 33,557,912
3,466,157 4,362,157 (9,672,608) (1,237,482) (6,206,451) 3,124,675
-- - - 221,472 - 221,472
9,545,452 31,804 (31,804) 9,545,452
13,011,609 4,393,961 (9,672,608) (1,047,814) 3,339,001 3,346,147
79,107,352 74,713,391 12,864,405 13,912,219 91,971,757 88,625,610
610,991 - 610,991
79,718,343 74,713,391 - 197,331 92,582,748 88,625,610
$ 92,729,952 $ 79,107,352 $ 3,191,797 $ 12,864,405 $ 95,921,749 $ 91,971,757
7
Business -type Activities
Business -type activities decreased the Village's net position by $9,672,608, mostly because of
the elimination of the Sanitary Sewer Construction fund, which was terminated as of September
30, 2018, and the Net Position transferred to Governmental Activities. Stormwater Utility
System fund Net Position decreased by approximately $270,000, mostly as a result of
operational losses. The Solid Waste fund increased its Net Position by about $143,000, entirely
due to an increase in Operating Income. The pie charts below illustrate the various sources of
revenues and expenditures:
Revenues by Source - Governmental Activities
Operating Grants g, Capital _Investment Earnings, $78,443 ,
0%
Contributions, $59,412 , 0% _ _ _
Charges for Services, _
- — -
$4,531,115 , 14%
Intergovernmental, _
$1,555,215 ,5%
UtilityTaxes, $2,110,494 , 5%
Communications5ervicesTax, _
$598,927 , 2%
Franchise Fees, $479
• Ad Va lorem Taxes • Franchise Fees
• Utility Taxes • Intergovernmental
• Operating Grants & Capital Contributions • Investment Earnings
Expenses - Governmental Activities
3uilding,Zoning and
Planning, $2,550,733,
8.31%_
Parks and Recreation,
$5,839,083 , 19.01%
Fire, $7,106;286,23.14%.
General Government
• Parks and Recreation
• Public Works • Police • Fire
Ad Valorem Taxes,
$24,202,255 , 71.15%
• Communications Services Tax
• Charges for Services
Interest on Long Term Debt,
$894,934 , 2.91% General Government,
,_ $4,536,855 , 14.77%
Public Works, $2,901,870
, 9.45%
• Building, Zoning and Planning • Interest on Long Term Debt
Police, $6,881,360,
22.41%
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Revenues by Source - Business -Type Activities
■ Solid Waste Charges • Storrnwater Charges
Expenses - Business -Type Activities
■ Solid Waste • Sanitary Sewer • stormwater
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.
At the end of the current fiscal year, fund balance of the General Fund was $17,222,068, a decrease of
$13,624,317. The decrease result almost entirely from the transfer out from the General Fund to the newly
created Parks, Recreation, and Open Space special revenue fund the amount of $7,214,656. Prior amounts
had been Committed fund balance. The Village transferred $9.5 million to cover expenditures in the Capital
Projects fund. A prior assignment of fund balance for Capital Projects of $6.3 million was moved to cover
the prior negative fund balance and a current amount for fiscal year 2019 of $3.2 million was transferred to
cover the current year's expenditures. These changes were made to make the financial statements more
transparent.
The Village's Assigned and Committed General Fund balances, together with the PROS Land Trust fund
balances can be used by the Village in case of an emergency. Together, these fund balances amount to
$22,267,267, or roughly 65% of the fiscal year 2018 General Fund expenditures. This represents almost 8
months of General Fund operating expenditures.
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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, 2018 and 2017, is as follows:
Table B-1
Summary of General Fund Balance Sheet
2018 2017
Total Assets $ 26,351,391 $ 34,691,907
Total Liabilities $ 9,129,323 $ 3,845,522
Fund Balance
Nonspendable 914,616 598,249
Restricted 1,254,841 1,950,591
Committed 4,090,000 12,034,340
Assigned 10,962,611 16,263,205
Total Fund Balance 17,222,068 30,846,385
Total Liabilities and Fund Balance
$ 26,351,391 $ 34,691,907
Table B-2
Summary of General Fund Statement of
Revenues, Expenditures and Changes in Fund Balances
2018 2017
Total Revenues $ 36,001,337 $ 33,978,319
Total Expenditures 34,021,256 30,751,184
Excess 1,980,081 3,227,135
Total Other Financing Sources (Uses) (15,604,398) (330,718)
Change in Fund Balance $(13,624,317) $ 2,896,417
Overall, total General Fund revenues in fiscal year 2018 were $36,001,337, an increase of $2,023,018, or
nearly 6% more. Expenditures totaled $34,021,256 for fiscal year 2018, also increasing by $3,270,072 over
the fiscal year 2017 amount of $30,751,184. This was a 10.6% increase year -over -year.
The Transportation Special Revenue Fund was established to account for the construction and future
maintenance of the Village's roadways. County bridge toll revenues are the source of funding for
construction of roadways, while the local option gas tax funds maintenance and the transportation surtax
funds debt service. In 2018, the Transportation Fund shows a fund balance of $1,831,441, of which
$823,271 is restricted for future transit projects.
The Capital Improvement Fund historically receives an annual budgeted transfer of surplus funds from
the General Fund to pay for capital improvements. Fiscal year 2017 had reflected a negative unassigned
balance of $6,305,354 which was made up of various projects detailed in the annually adopted Capital
Improvement Plan. Funding for the deficit had been part of the Working Capital fund balance assignment
in the General Fund. During fiscal year 2018, this funding was transferred into the Capital Improvement
Fund, together with $3,162,314 of current year expenditures. The fund ended with a zero fund balance.
Likewise, the General Fund assignment for Working Capital was also reduced by identical amounts. Most
projects customarily span a five-year period while others are revolving. Additional detail regarding these
projects is described in the Capital Asset section on the following page.
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General Fund Budgetary Highlights
The General Fund had a favorable $1,980,081 budget to actual performance, representing additional revenues
over expenditures, but before operating transfers out to other funds. Notable highlights were:
Revenues
Utility service and communication services tax were 7.11% higher because they appear to have been
underbudgeted. Electric franchise fee revenue was not expected to be 38.02% greater because the prior
year had extraordinary property tax offsets applied to reduce payments and that did not recur in fiscal year
2018; building permits were about 15% less than expected, but that revenue is volatile and accurate forecasts
are difficult; intergovernmental revenue was 71.42% higher, largely because state shared revenues for
police and fire pensions were not budgeted and also had "catch up" contributions not made in the prior year
and miscellaneous revenues were 88.65% higher than expected because of sales of capital assets, donations,
and settlement agreements.
Expenditures
General governmental expenditures were less than expected because of reduced lobbyist expenditures and
not incurring expenditures for legal costs as a result of the boat show litigation. Police expenditures
exceeded the original budget by 8.79% because the federal forfeiture, compensated absences, off -duty
detail, and red light camera expenditures were not originally budgeted. Fire and police pension costs
likewise were underbudgeted, but were, in large part, offset by the additional intergovernmental revenue
noted above. Public Works expenditures generally had savings, but were overbudget otherwise because of
Hurricane Irma expenditures, which should be largely paid back by FEMA during fiscal year 2020. Parks
and recreation programming reductions saw a savings of about 24% while debt service was overbudgeted,
owing to the timing of the payments ultimately made.
Capital Assets
As of September 30, 2018, the Village's capital assets, net of accumulated depreciation, amounted to
$100,872,483, compared to $101,449,214 for the prior year. Major capital asset events during the fiscal
year included the following:
• 530 Crandon Boulevard improvements
• Police software and CAD system
• Fire Station improvements
• Powerline undergrounding
• Village Green improvements
• Play field improvements
• Computer lab
Additional information on the Village's capital assets can be found in Note 7 on pages 44-45 of this report.
Debt Administration
At September 30, 2018, the Village had bonded debt outstanding of $31,180,008 (composed of $25,883,654 in
governmental activities and $5,296,354 of business -type activities) compared to $30,339,000 as of September
30, 2017.
Additional information on the Village's long-term debt can be found in Note 8 on pages 46-56 of this report.
Economic Factors and Risks
The Village of Key Biscayne is located on the island of Key Biscayne and is just east of the City of Miami.
Because of its low elevation, it is a greater risk of storm surge from hurricanes and also for rising ocean
levels.
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The Village's median age is 44.5 years. The median household income is $119,920 and the median home
value is $1,106,760. The median net worth is $323,852. The average renter's expense is $5,791 monthly
and the average homeowner's monthly expense is $19,519. Nearly three -fourths of the households have
college degrees and 90% of all households have some college. Seventy-seven percent of the households
typically have established wealth, are well-educated and well -traveled, almost always own their own home,
are married with children ranging from grade school to college. They expect quality and invest in time-
saving services. They actively participate in the community and are active in sports. They tend to be
enthusiastic travelers. The remaining twenty-three percent of households is characterized as prosperous
married couples that are ambitious and hard-working, with 70% of them owning their own homes. They
tend to be more diverse and are financially responsible. They appreciate both quality and bargains. They
are active in fitness pursuits.1
The Village has 5,072 workers, with about 76% of them driving alone to work. The typical travel time to
work ranging from 20-35 minutes. Most workers who live in the Village work elsewhere. Ninety-two
percent of the workers are white collar and the unemployment rate is 2.4%. Ninety-six percent of the
population is white and nearly 70% is of Hispanic origin.
The demographics of the Village will not likely change over the next five years.
The businesses that exist on the island are generally supportive retail operations or those related to tourism.
The Village is not dependent upon tourism for its financial health. The Village's millage rate for fiscal year
2018 and fiscal year 2019 is 3.00 and 3.10, respectively.
Undiversified Tax Base and limits on homestead property growth. The Village's tax base is roughly
95% residential and 5% commercial. This makes the Village exposed to movements in the residential
property markets. Further, Florida's Constitution restricts residential homestead assessment growth to 3%
per year, or less, on each home that has a homestead exemption. Commercial properties are limited to a
maximum 10% annual increase on their assessment and they are not generally provided any exemptions
from assessment. The Village is overwhelmingly residential in nature, but is fortunate to have a number of
residential units that are not subject to this annual limitation. Further, the value of the homes that are subject
to the annual assessment cap is substantial. However, the Village may be exposed to changes in the manner
with which annual assessments are valued or the limit to which they may be taxed, or additional homestead
exemptions granted by the Legislature.
Labor Agreements. The Village's bargaining groups continue to request improvements to pay, benefits,
and working conditions. Given the increasing cost of personnel, coupled with moderately increasing
revenues, the Village will continue to face a structural budget issue whereas the pace of expenses exceeds
revenues. During the year, the Village agreed to substantial changes in police and fire pension benefits that
will impact future contributions.
Reliance upon Intergovernmental Revenue. The Village received $2.3 million in revenue from other
governments during fiscal year 2018, or about 6% of General Fund total revenues. Since the Village does
not directly control the assessment or collection of these revenues, it is exposed to the risk that those
revenues will not grow or even be available in future years. The loss of these revenues would likely require
the Village to raise more money through higher local taxing efforts. The Village has the capacity to raise
its tax rates to more than offset the loss of these other governmental revenues.
Environmental Risks. The Village is located on an island between Biscayne Bay and the Atlantic Ocean
and is exposed to significant risks caused by weather, particularly hurricanes. In addition to the potential
damage to structures and infrastructure, substantial loss of beach can occur during hurricanes, hurting
'Esri Tapestry Segmentation, 2018, LifeMode Groups.
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tourism and reducing property values. The Village is concerned with rising sea levels. Sea levels are
increasing and we are concerned about the impact to our island. Mitigating the impact to sea level rise
could have a considerable financial impact on the Village and its property owners. Additionally, demand
for property that would be adversely affected by rising sea levels may be reduced, affecting the Village's
tax base. The Village is evaluating various resiliency efforts, including undergrounding of utilities and
improvements to stormwater systems. The cost of these improvements will be tens of millions of dollars
but the Village believes they will be affordable to the property owners over time.
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.
13
BASIC FINANCIAL STATEMENTS
The accompanying notes are an integral part of these financial statements.
The accompanying notes are an integral part of these financial statements.
The accompanying notes are an integral part of these financial statements.
The accompanying notes are an integral part of these financial statements.
The accompanying notes are an integral part of these financial statements.
The accompanying notes are an integral part of these financial statements.
The accompanying notes are an integral part of these financial statements.
The accompanying notes are an integral part of these financial statements.
The accompanying notes are an integral part of these financial statements.
The accompanying notes are an integral part of these financial statements.
NOTES TO BASIC FINANCIAL STATEMENTS
A. FINANCIAL REPORTING ENTITY
The
Financial Reporting Entity
B. GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS
B. GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS (CONTINUED)
Governmental activities,
business-type activities,
Direct expenses
Program revenues
general revenues.
C. MEASUREMENT FOCUS,BASIS OF ACCOUNTING, AND FINANCIAL STATEMENT
PRESENTATION
economic resources
measurement focus accrual basis of accounting
current financial resources
measurement focus modified accrual basis of accounting
available
C. MEASUREMENT FOCUS,BASIS OF ACCOUNTING, AND FINANCIAL STATEMENT
PRESENTATION (CONTINUED)
General Fund
Sanitary Sewer Construction Fund
Transportation Special Revenue Fund
Parks and Recreational Open Space (PROS) Land Trust Special Revenue Fund
Capital Improvement Fund
Stormwater Utility System Fund
Solid Waste Fund
C. MEASUREMENT FOCUS,BASIS OF ACCOUNTING, AND FINANCIAL STATEMENT
PRESENTATION (CONTINUED)
Pension Trust Fund
program revenues
general revenues
operating nonoperating
D. IMPLEMENTATION OF GOVERNMENTAL ACCOUNTING STANDARDS BOARD STATEMENTS
Accounting and
Financial Reporting for Postemployment Benefit Plans Other Than Pensions
Accounting and Financial Reporting by
Employers for Postemployment Benefits Other Than Pensions (OPEB)
OPEB Measurements by Agent Employers and Agent Multiple Employer Plans
D. IMPLEMENTATION OF GOVERNMENTAL ACCOUNTING STANDARDS BOARD STATEMENTS
(CONTINUED)
Irrevocable Split-Interest Agreements
Omnibus 2017
Certain Debt Extinguishment Issues
E. ASSETS, LIABILITIES, DEFERRED OUTFLOWS/INFLOWS OF RESOURCES AND NET
POSITION OR EQUITY
1. Deposits and Investments
E. ASSETS, LIABILITIES, DEFERRED OUTFLOWS/INFLOWS OF RESOURCES AND NET
POSITION OR EQUITY
2. Interfund Receivables and Payables
3. Receivables
4. Capital Assets
E. ASSETS, LIABILITIES, DEFERRED OUTFLOWS/INFLOWS OF RESOURCES AND NET
POSITION OR EQUITY (CONTINUED)
4. Capital Assets (continued)
5. Unearned/Unavailable Revenue
E. ASSETS, LIABILITIES, DEFERRED OUTFLOWS/INFLOWS OF RESOURCES, AND NET
POSITION OR EQUITY (CONTINUED)
6. Compensated Absences
7. Long-Term Obligations
8. Deferred Outflows/Inflows of Resources
E. ASSETS, LIABILITIES, DEFERRED OUTFLOWS/INFLOWS OF RESOURCES, AND NET
POSITION OR EQUITY (CONTINUED)
8. Deferred Outflows/Inflows of Resources (continued)
9. Fund Equity
Nonspendable fund balance.
Restricted fund balance
E. ASSETS, LIABILITIES, DEFERRED OUTFLOWS/INFLOWS OF RESOURCES, AND NET
POSITION OR EQUITY (CONTINUED)
9. Fund Equity (continued)
Committed fund balance
Assigned fund balance
Unassigned fund balance
10. Net Position
E. ASSETS, LIABILITIES, DEFERRED OUTFLOWS/INFLOWS OF RESOURCES, AND NET
POSITION OR EQUITY (CONTINUED)
10. Net Position (continued)
11. Use of Estimates
12. Flow Assumptions
Net Position Flow Assumption
Fund Balance Flow Assumption
DEPOSITS
Florida Security for
Public Deposits Act
INVESTMENTS
INVESTMENTS –VILLAGE
Interest Rate Risk
Credit Risk
INVESTMENTS –VILLAGE (CONTINUED)
Custodial Credit Risk
INVESTMENTS –PENSION PLAN
INVESTMENTS –PENSION PLAN
Interest Rate Risk
Credit Risk
Concentration of Credit Risk
RISKS AND UNCERTAINTIES
FAIR VALUE HIERARCHY
FAIR VALUE HIERARCHY (CONTINUED)
FAIR VALUE HIERARCHY (CONTINUED)
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.
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.
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, 2018
NOTE 4 — RECEIVABLES
Receivables as of September 30, 2018 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:
Transportation PROS Land
Special Trust Special Storm- Solid Pension
General Revenue Revenue water Waste Trust Fund Total
Customers billed $ -- $ -- $ -- $ 257,725 $ 455,914 $ $ 713,639
Contributions -- -- -- -- -- 510,216 510,216
Intergovernmental 1,260,792 215,805 828,000 2,304,597
Other -- -- -- 1,825,550 1,825,550
Gross receivables 1,260,792 215,805 828,000 257,725 455,914 2,335,766 5,354,002
Less: Allowance for
uncollectibles (45,591) (45,591)
Net Total Receivables
$ 1,260,792 $ 215,805 $ 828,000 $ 257,725 $ 410,323 $ 2,335,766 $ 5,308,411
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, 2018 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, 2018, there were no material delinquent taxes.
42
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2018
NOTE 6 — INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS
The composition of interfund balances as of September 30, 2018 is as follows:
Receivable Fund
Payable Fund
General
Transportation
PROS Land Trust
Capital Improvements
Total
Capital
General Improvements Stormwater
$ $ 1,047,593 $ 1,468,081
20,081
5,907,266
863,179
Solid
Waste
$ 448,833
Total
$ 2,964,507
20,081
5,907,266
863,179
$ 6,790,526 $ 1,047,593 $ 1,468,081 $ 448,833 $ 9.755,033
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
General Fund
General Fund
Transfer In
Capital Improvements
PROS Land Trust Fund
Amount
$ 9,467,668
6,136,730
$ 15,604,398
Transfers are used to move unrestricted general fund revenues to finance various capital
projects in accordance with budgetary authorizations. The transfer from the general fund to
the PROS land trust fund represents a transfer of the prior year balance that was reported as
committed for the open space land trust to the new fund opened for the purpose of
acquiring parks and recreational lands.
43
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2018
NOTE 7 — CAPITAL ASSETS
Capital asset activity for the year fiscal ended September 30, 2018 was as follows:
Beginning Increases and Decreases and Ending
Balance Transfers Transfers Balance
Governmental Activities
Capital Assets, Not Being Depreciated
Land $ 23,941,979 $ -- $ -- $ 23,941,979
Construction in progress 11,261,263 1,463,692 (54,044) 12,670,911
Total Capital Assets, Not Being Depreciated 35,203,242 1,463,692 (54,044) 36,612,890
Capital Assets, Being Depreciated
Buildings
Improvements other than buildings
Furniture, fixtures and equipment
Sanitary Sewer system
Total Capital Assets, Being Depreciated
25,701,930
36,194,988
12,986,008
433,958
546,674
833,273
18,808,259
26,135,888
36,741,662
(293,467) 13,525,814
18,808,259
74,882,926 20,622,164 (293,467) 95,211,623
Less: Accumulated Depreciation for
Buildings (7,452,660) (528,222) (7,980,882)
Improvements other than buildings (11,796,421) (1,485,307) -- (13,281,728)
Furniture, fixtures and equipment (9,421,052) (944,157) 290,339 (10,074,870)
Sanitary Sewer system (6,929,359) (6,929,359)
Total Accumulated Depreciation (28,670,133) (9,887,045) 290,339 (38,266,839)
Total Capital Assets, Being Depreciated, Net 46,212,793 10,735,119 (3,128) 56,944,784
Governmental Activities Capital Assets, Net
Business -type Activities
Capital Assets, Not Being Depreciated
Construction in progress
Total Capital Assets, Not Being Depreciated
Capital Assets, Being Depreciated
Stormwater utility system
Sanitary Sewer system
Total Capital Assets, Being Depreciated
$ 81,416,035 $ 12,198.811 $ (57,172) $ 93,557,674
$ 695,770 $ 323,179 $ -- $ 1,018,949
695,770 323,179
12,313,943
18,808,259
1,018,949
159,504 12,473,447
(18,808,259)
31,122,202 159,504 (18,808,259) 12,473,447
Less: Accumulated Depreciation for
Stormwater utility system (5,845,342) (332,245) (6,177,587)
Sanitary Sewer system (5,939,451) 5,939,451
Total Accumulated Depreciation (11,784,793) (332,245) 5,939,451 (6,177,587)
Total Capital Assets, Being Depreciated, Net 19,337,409 (172,741) (12,868,808) 6,295,860
Business -type Activities Capital Assets, Net $ 20.033,179 $ 150,438 $ (12,868,808) $ 7,314,809
44
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2018
NOTE 7 — CAPITAL ASSETS (CONTINUED)
Effective October 1, 2017, the Village closed the Sanitary Sewer system fund. As a result,
the fund transferred capital assets being depreciated with a cost basis of $18,808,259 and
related accumulated depreciation of $5,939,451 to the Village's Governmental Activities.
Depreciation expense was charged as functions/programs of the primary government as
follows:
Governmental Activities
General government $ 1,122,163
Police 343,331
Fire 359,305
Public works 1,210,267
Building, zoning and planning 29,560
Parks and recreation 882,968
Total Depreciation Expense - Governmental Activities $ 3,947,594
Business -type Activities
Stormwater $ 332,245
Total Depreciation Expense - Business -Type Activities $ 332,245
45
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2018
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, 2018:
Beginning Additions Ending Due Within
Balance and Transfers Reductions Balance One Year
Governmental Activities
Bonds Payable
Land acquisition and capital improvement
revenue bonds, Series 1999 $ 2,330,000 $ -- $ (740,000) $ 1,590,000 $ 775,000
Capital improvement revenue refunding
bonds, Series 2011A 2,970,000 (715,000) 2,255,000 735,000
Capital improvement revenue refunding
bonds, Series 2011B 3,595,000 (650,000) 2,945,000 665,000
Capital improvement and land acquisition
revenue refunding bonds, Series 2011 940,000 (170,000) 770,000 170,000
Transportation tax revenue refunding
bonds, Series 2011 1,696,876 (150,698) 1,546,178 205,221
Road improvement revenue bonds,
Series 2006 1,382,472 (298,726) 1,083,746 311,930
School improvement revenue bonds,
Series 2012 4,751,889 4,751,889 281,633
School improvement revenue bonds,
Series 2014 4,065,000 (535,000) 3,530,000
Sewer improvement revenue
bonds, Series 2016 3,167,923 (225,856) 2,942,067 230,327
Revolving loan, 1996 143,484 (24,617) 118,867 25,252
Total Bonds Payable 21,731,237 3,311,407 (3,509,897) 21,532,747 3,399,363
Other Liabilities
Capital leases
Compensated absences
Total Other Liabilities
Governmental Activities Long -
Term Liabilities
1,970,887
2,684,470
1,574,650
(531,778)
(1,347,322)
1,439,109
2,911,798
472,530
727,949
4,655,357 1,574,650 (1,879,100) 4,350,907 1,200,479
$ 26386,594 $ 4,886,057 $ (5,388,997) $ 25,883,654 $ 4.599,842
Long-term obligations related to governmental activities, including pension and OPEB, are
generally liquidated from the general fund.
46
LAND ACQUISITION AND CAPITAL IMPROVEMENT REVENUE BONDS,SERIES 1999
CAPITAL IMPROVEMENT REVENUE REFUNDING BONDS, SERIES 2011A
CAPITAL IMPROVEMENTS REVENUE REFUNDING BONDS, SERIES 2011B
CAPITAL IMPROVEMENT AND LAND ACQUISITION REVENUE REFUNDING BONDS, SERIES
2011
CAPITAL IMPROVEMENT AND LAND ACQUISITION REVENUE REFUNDING BONDS, SERIES
2011(CONTINUED)
TRANSPORTATION TAX REVENUE REFUNDING BONDS,SERIES 2011
ROAD IMPROVEMENT REVENUE BONDS,SERIES 2006
SCHOOL IMPROVEMENT REVENUE BONDS,SERIES 2012
SCHOOL IMPROVEMENT REVENUE BONDS,SERIES 2012(CONTINUED)
SCHOOL IMPROVEMENT REVENUE BONDS,SERIES 2014
SCHOOL IMPROVEMENT REVENUE BONDS,SERIES 2014(CONTINUED)
*
SEWER IMPROVEMENT REVENUE BONDS,SERIES 2016
SCHOOL IMPROVEMENT REVENUE BONDS,SERIES 2016(CONTINUED)
STATE REVOLVING FUND LOAN,1996
CAPITAL LEASES
STORMWATER UTILITY REFUNDING AND IMPROVEMENT REVENUE BONDS,SERIES 2016
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2018
NOTE 8 — LONG-TERM DEBT (CONTINUED)
Debt service requirements to maturity are as follows:
Principal
Fiscal Year Ending September 30
2019
2020
2021
2022
2023
2024-2028
2029-2031
NOTE 9 — FUND BALANCE CLASSIFICATIONS
Interest
Total
$ 354,619
362,952
371,482
380,212
389,147
2,087,282
1,350,660
$ 120,842 $ 475,461
112,410 475,362
103,780 475,262
94,948 475,160
85,908 475,055
286,329 2,373,611
48,927 1,399,587
$ 5,296,354 $ 853,144 $ 6,149,498
As of September 30, 2018, fund balances in the governmental funds 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
Restricted
Building inspections
Fire code violations
Fire grant revenue (UASI)
Law enforcement seizures
Committed
Emergencies
Labor negotiations
Subtotal (Forward)
$ 914,616
575,880
331,238
45,689
302,034
1,254,841
4,000,000
90,000
4,090,000
$ 6,259,457
56
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2018
NOTE 9 — FUND BALANCE CLASSIFICATIONS (CONTINUED)
Subtotal (Forward) $ 6,259,457
Assigned
Compensated absences 727,949
Fire rescue transport fees 1,995,851
Working capital (surplus) 8,238,811
10,962,611
Total Fund Balance - General Fund $ 17,222,068
Restricted
Transportation surtax
Assigned
$ 823,271
1,008,170
Total Fund Balance - Transportation Special Revenue $ 1,831.441
Committed
Open space land trust
Total Fund Balance - PROS Land Trust
NOTE 10 — DEFINED CONTRIBUTION PLANS
$ 7,214,656
$ 7,214,656
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 Village Manager 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 $26,000 and $26,000 for the year ended September 30, 2018 and 2017,
respectively. Amendments to the Plans must be authorized by the Village Council.
57
PLAN DESCRIPTION
PLAN DESCRIPTION (CONTINUED)
FUNDING POLICY
FUNDING POLICY (CONTINUED)
SHARE PLAN
DROPPLAN
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2018
NOTE 12 —NET PENSION LIABILITY OF THE VILLAGE
As of September 30, 2018, the Village reported a net pension liability (NPL) of $1,652,935,
which was measured as of September 30, 2017 (GASB 68 measurement date). In
accordance with GASB 67, information related to the PERS as of September 30, 2018 has
also been disclosed.
2018 2017
Total pension liability $ 44,714,321 $ 38,994,690
Plan fiduciary net position (a) (41,703,184) (37,341,755)
Net pension liability $ 3,011,137 $ 1,652,935
Plan fiduciary net position as a percentage
of total pension liability
93.27% 95.76%
(a) The 2018 plan fiduciary net position disclosed above does not agree to the pension trust
statement of fiduciary net position due to the timing of recognition of the deferred inflow of
resources reported in prior year for actuarial purposes in the amount of $295,305.
Changes in the Village's net pension liability for the fiscal year ended September 30, 2018
is as follows:
Beginning Balances
Changes for the Year:
Service cost
Interest
Differences between actual and expected experience
Assumption changes
Benefit payments
Refunds
Contributions - employer (from Village)
Contributions - employer (from State)
Contributions - employee (including buyback contributions)
Net investment income
Administrative expense
Net Changes
Police Officers and Firefighters
Total
Pension
Liability
$ 35,667,966
982,149
2,815,914
17,729
608,244
(1,060,547)
(36,765)
3,326,724
Plan Net
Fiduciary Pension
Net Position Liability
$ 32,871,931 $ 2,796,035
982,149
2,815,914
17,729
608,244
(1,060,547) --
(36,765)
937,715 (937,715)
599,086 (599,086)
4,090,514 (4,090,514)
(60,179) 60,179
4,469,824 (1,143,100)
Ending Balances $ 38,994,690 $ 37,341,755 $ 1,652,935
61
SIGNIFICANT ACTUARIAL ASSUMPTIONS
LONG-TERM EXPECTED RATE OF RETURN
LONG-TERM EXPECTED RATE OF RETURN (CONTINUED)
RATE OF RETURN
DISCOUNT RATE
SENSITIVITY OF THE NET PENSION LIABILITY TO CHANGES IN THE DISCOUNT RATE
PENSION EXPENSE AND DEFERRED OUTFLOWS OF RESOURCES AND DEFERRED INFLOWS OF
RESOURCES RELATED TO PENSIONS
PENSION EXPENSE AND DEFERRED OUTFLOWS OF RESOURCES AND DEFERRED INFLOWS OF
RESOURCES RELATED TO PENSIONS (CONTINUED)
PLAN DESCRIPTION
ACTUARIAL METHODS AND ASSUMPTIONS
TOTAL OPEB LIABILITY AND CHANGES IN TOTAL OPEB LIABILITY
TOTAL OPEB LIABILITY AND CHANGES IN TOTAL OPEB LIABILITY (CONTINUED)
SENSITIVITY OF TOTAL OPEB LIABILITY TO CHANGES IN THE DISCOUNT RATE OR
HEALTHCARE COST TREND RATE
OPEB EXPENSE AND DEFERRED INFLOWS/OUTFLOWS OF RESOURCES RELATED TO OPEB
LITIGATION
GRANTS CONTINGENCY
Accounting and Financial Reporting for
Post-employment Benefits Other Than Pensions
REQUIRED SUPPLEMENTARY INFORMATION
See notes to budgetary comparison schedule.
See notes to budgetary comparison schedule.
See notes to budgetary comparison schedule.
VILLAGE OF KEY BISCAYNE, FLORIDA
REQUIRED SUPPLEMENTARY INFORMATION
NOTES TO BUDGETARY COMPARISON SCHEDULE
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2018
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,
2018, there were supplemental appropriations of $1,915,466.
(d) Formal budgetary integration is employed as a management control device for the General
Fund.
(e) The budget for the general fund, the Transportation and PROS Land Trust special revenue funds
are 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.
73
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.
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.
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.
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.
STATISTICAL SECTION
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:
These schedules contain information to help the reader assess the Village's most
significant local revenue source, the property tax.
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.
These schedules offer demographic and economic indicators to help the reader
understand the environment within which the Village's financial activities take
place.
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.
Sources: Unless otherwise noted, the information in these schedules is derived from the
comprehensive annual financial reports for the relevant year.
VILLAGE OF KEY BISCAYNE, FLORIDA
NET POSITION BY COMPONENT
LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Governmental activities
Net investment in capital assets $ 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 $ 70,944,473
Restricted 308,813 -- 1,170,247 500,137 3,138,445 3,455,654 2,405,158 3,425,433 2,665,724 2,078,112
Unrestricted 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 19,707,367
Total governmental activities net position 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 92,729,952
Business -type activities
Net investment in capital assets 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 4,080,025
Unrestricted (346,721) 1,116,111 1,133,034 706,195 439,166 1,477,416 719,861 651,997 (599,305) (888,228)
Total business -type activities net position 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 3,191,797
Total government
Net investment in capital assets 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 75,024,498
Restricted 308,813 1,170,247 500,137 3,138,445 3,455,654 2,405,158 3,425,433 2,665,724 2,078,112
Unrestricted 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 18,819,139
Total Government Net Position $ 68,883,100 S 75,714,823 S 79,193,555 $ 81,640,122 S 80.145,586 S 76,343,969 $ 85,465 751 S 88.625,610 S 91 971,757 $ 95,921,749
79
VILLAGE OF KEY BISCAYNE, FLORIDA
CHANGES IN NET POSITION
LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Expenses
Governmental activities:
General government $ 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 $ 6,211,564
Police 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 7,681,000
Fire 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 7,628,618
Public works 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 4,188,854
Building, zoning and planning 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 2,366,496
Parks and recreation 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 5,954,340
Interest on long-term debt 1,447,387 1,366,437 1,217,874 843,965 935,242 962,167 816,313 796,152 894,934 701,558
Total governmental activities 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 34,732,430
Business -type activities:
Stormwater 779,856 603,262 815,402 689,287 715,836 1,109,510 1,783,865 934,223 1,060,705 1,234,916
Sanitary sewer 144,922 39,178 197,474 1,234,279 1,133,209 1,126,907 1,120,166 1,137,592 994,042 9,545,452
Solid waste 618,155 585,927 546,534 563,995 574,686 583,083 582,943 840,730 792,044 698,321
Total business -type activities 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 11,478,689
Total goverment expenses $ 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 $ 46,211,119
Program revenues
Governmental activities:
Charges for services:
General government $ 237,315 $ 181,992 $ 169,307 $ 177,574 $ 140,587 $ 160,800 $ 157,868 $ 147,693 $ 183,901 $ 161,527
Police 38,181 (1,479) 1,763 375 1,455 4,700 20,011 -- 3,571 68,809
Fire 136,433 158,975 1.90,989 145,544 188,169 210,678 193,442 165,106 162,683 191,529
Building, zoning and planning 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 1,216,539
Parks and recreation 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 3,377,137
Operating grants and contributions 157,912 163,752 77,638 6,629 426,917 97,970 85,315 54,331 59,412 53,210
Capital grants and contributions 1,709,481 959,360 730,492 783,886 803,620 826,282 7,854,679 867,197 873,734 1,733,691
Total governmental activities program revenues 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 6,802,442
Business -type activities:
Charges for services:
Stormwater
Solid waste
Capital grants and contributions:
Stormwater 331,319 172,164 --
Sanitary sewer 6,971,311 2,501,287 258,500
Operating grants and contributions:
Stormwater - 164,176
Total business -type activities program revenues
Total program revenues
491.314 484,932 979,865 935,352 958,114 907,324 939,798 908,269 933,683 941,302
635,580 615,480 597,431 588,449 592,480 591,079 600,688 652,455 651,344 841,501
47,872
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 1,782,803
$ 13,840,033 $ 8,591.575 $ 7,478,095 $ 7.598,935 5 8,478,607 $ 7,860,909 $ 15,746,985 $ 8,706,948 $ 7,349,288 $ 8,585,245
(Continued)
80
VILLAGE OF KEY BISCAYNE, FLORIDA
CHANGES IN NET POSITION
(Continued)
LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Net (expense) revenue
Governmental activities $ (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) $ (27,929,988)
Business -type activities 6,886,591 2,545,496 276,386 (963,760) (873,137) (1,321,097) (1,898,616) (1,187,645) (1,261,764) (9,695,886)
Total net expense $ (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) $ (37,625,874)
General revenues
Governmental activities:
Taxes:
Property taxes $ 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 $ 24,992,663
Utility taxes 1,555,748 1,655032 1,705,238 1,727,651 1,789,909 1,967,061 1,979,733 2,007,095 2,110,494 2,136,221
Franchise fees 992,997 1,006,415 735,519 846,252 780,245 574,639 595,196 603,889 479,194 655,599
Communications services tax 1,091,734 1,029,087 964,324 946,399 1,010,931 917,449 862,165 753,385 698,927 734,422
Intergovernmental 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 2,595,087
Investment earnings 44,737 21,346 37,254 37,985 16,722 34,991 47,004 111,484 78,443 37,503
Miscellaneous 91,232 131,847 147,065 212,697 1,627,479 148,140 139,196 81,516 184,489 244,650
Transfers (164,502) (212,308) (28,134) (28,134) (28,134) (257,134) (343,884) (382,883) 31,804 9,545,452
Total governmental activities 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 40,941,597
Business -type activities:
Investment earnings 21,303 1,974 2,162 587 659 5,551 3,911 5,986 24,282 23,278
Capital Contributions from General Fund - -- - - - - - - 221,472 --
Transfers 164,502 212,308 28,134 28,134 28,134 257,134 343,884 382,883 (31,804)
Total business -type activities 185,805 214,282 30,2% 28,721 28,793 262,685 347,795 388,869 213,950 23,278
Total general revenues $ 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 $ 40,964,875
Change in Net Position
Governmental activities $ 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 $ 13,011,609
Business -type activities 7,072,396 2,759,778 306,682 (935,039) (844,344) (1,058,412) (1,550,821) (798,776) (1,047,814) (9,672,608)
Total change in Net Position $ 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 $ 3,339,001
81
VILLAGE OF KEY BISCAYNE, FLORIDA
FUND BALANCES OF GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
General fund
Non -spendable
Restricted
Committed
Assigned
Reserved
Unreserved
Total General Fund
12,318,533
$ — $ 305,730
1,170,247
12,039,224
4,028,870
15,286,689
$ 303,918
1,054,070
4,858,269
8,178,544
$ 272,330
1,466,704
5,065,439
10,852,640
$ 353,823 $ 268,176 $ 443,084 $ 598,248 $ 914,616
1,574,817 1,875,857 2,795,695 1,950,591 1,254,841
5,214,654 13,538,053 11,606,197 12,034,340 4,090,000
11,756,540 11, 870,006 13,104,992 16,263,027 10,962,611
179
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 17,222,068
All other governmental funds
Committed 3,665,259 6,060,286 4,240,104 4,371,204 3,188,871 629,740 7,214,656
Unassigned (1,077,816) (690,343) (278,254) (314,462) -- -- -- —
Restricted -- -- 573,701 1,671,741 470,334 529,301 -- 715,133 823,271
Assigned 59,404 414,264 - 1,008,170
Unreserved, reported in:
Special revenue fund (1,501,382) (1,299,432) -- 825,896
Capital projects funds 6,875,361 5,195,557 (2,114,581) (6,305,354)
Total Other Governmental Funds 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) 9,046,097
Total Governmental Funds
$ 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 $ 26,268,165
Note: The Village implemented GASB Statement No. 54 for the fiscal year ended September 30, 2011.
82
VILLAGE OF KEY BISCAYNE, FLORIDA
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
Revenues
Ad valorem taxes
Franchise fees
Utility taxes/communication services tax
Licenses and permits
Intergovernmental revenue
Charges for services
Grants
Investment income
Contributions
Miscellaneous
Total revenues
Expenditures
Current:
General government
Fire
Police
Public works
Building, planning and zoning
Parks and recreation
Capital outlay
Intergovernmental:
Payment under interlocal agreement
Debt service:
Principal
Interest and other fiscal charges
Total expenditures
Excess (deficiency) of revenues over expenditures
Other financing sources (uses)
Transfers in
Transfers out
Bonds issued
Payment for interlocal agreement
Refunding bonds issued
Debt service - principal
Proceeds from sale of capital assets
Capital lease proceeds
Total other financing sources (uses)
Net Change in Fund Balances
Debt service as a percentage
of non -capital expenditures
2009 2010 2011
2012 2013
2014
2015 2016
2017 2018
$ 19,769,976 $ 17,832,874 $ 16,646,040
992,997 1,006,415 735,519
2,834,749 2,731,766 2,717,209
1,188,297 1,329,823 1,948,820
3,047,844 2,089,015 2,305,806
2,354,819 2,364,777 2,885 349
167,873 425,339 77,638
44,737 21,346 37,254
26,232 131,848 147,065
30,427,524 27,933,203 27,500,700
$ 16,985,109 $ 17,499,835
846,252 780,245
2,709,498 2,800,840
2,383,500 2,542,103
2,451,483 2,575,828
2,901,119 3,155,373
6,629 426,917
37,985 16,722
212,697 1,627,479
$ 17,857,711
574,639
2,884,510
2,090,916
2,728,459
3,347,338
97,970
34,991
148,140
28,534,272 31,425,342 29,764,674
$ 19,353,288 $ 22,249,642 $ 24,202,255 $ 24,992,663
595,196 603,889 479,194 655,599
2,841,898 2,760,480 2,809,421 2,870,643
3,076,414 2,484,872 1,239,116 1,211,159
2,756,453 2,822,380 2,428,949 3,462,454
3,142,219 3,548,985 3,591999 3,804,382
85,315 54,331 59,412 881,210
47,004 111,484 78,443. 37,503
7,000,000 -- -- 38,325
139,196 81,516 184,489 244,650
39,036,983 34,717,579 35,073,278 38,198,588
2,266,763 1,934,341 1,929,153
6,407,770 6,584,784 6,557,442
5,116,158 5,093,601. 5,312,977
1,914,119 1,608,193 1,711,868
1,540,507 1,602,651 1,702,541
3,730,084 3,717,935 3,799,408
1,537,930 2,349,935 1,963,219
2,066,501
7,056,020
5,453,853
1,727,203
1,777,349
3,764,570
3,793,179
2,255,188
7,014,382
5,750,069
1,826,782
1,842,175
4,092,835
2,294,068
2,468,672
7,574,576
6,018,581
1,732,554
2,064,687
4,170,205
1,769,634
- 4,574,703
2,051,307 2,140,684 2,348,506 2,436,139 2,531,116
1,450, 649 1,3 86,913 1,520,433
828,393 913,409
2,716,772
2,884,740 3,783,031
6,726,873 6,895,590
6,077,940 5,957,079
1,752,803 1,873,594
1,982,159 2,074,777
4,258,750 4,754,626
3,334,821 6,938,850
8,545 2,390,330
2,920,699 3,294,521
875,949 973,012 822,575
3,265,030 3,755,605
6,882,673 7,499,587
6,621,521 7,603,393
2,683,504 3,968,495
2,476,950 2,336,937
5,073,774 5,071,372
6,567,150 3,278,569
3,459,733 3,771,867
777,099 726,658
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 38,012,483
4,412,237 1,514,166 655,153
3,236,194 -- --
(3,400,696) (212,308) (28,134)
- - 18,693,952
-- -- (18,693,952)
65,000 - -
- 188,444 321,681
(99,502) (23,864) 293,547
$ 4,312,735 $ 1,490,302 $ 948,700 $
(368,935) 2,905,318 (4,201,659) 8,116,641 (4,067,394) (2,734,156) 186,105
5,816,222
(5,844,356)
604,000
575,866 46,941 4,337,866
(28,134)
5,575,075
(5,500,000)
904,093
(1,161,227)
4,575,000
20,000
1,855,623
(2,199,507)
130,000
4,260,203
(4,643,086)
2,327,481 15,604,398
(2,295,677) (15,604,398)
- - 1,905,021
(213,884) (382,883) 1,936,825
206,931 $ 2,952,259 $ 136,207 $ 7,902,757 $ (4,450,277) $ (797,331) $ 186,105
14% 15% 16% 13% 13% 11% 14% 14% 14% 13%
83
VILLAGE OF KEY BISCAYNE, FLORIDA
GENERAL GOVERNMENTAL TAX REVENUES BY SOURCE
LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
Fiscal
Year
Ad Valorem
Taxes
Franchise Utility
Taxes Taxes
Inter-
governmental
Communications
Services Tax
Total
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
17,832,874
17,832,874
16,646,040
16,985,109
17,499,835
17,857,711
19,353,288
22,249,642
24,202,255
24,992,663
1,006,415 1,655,032
1,006,415 2,731,766
735,519 1,705,238
846,252 1,727,651
780,245 1,789,909
574,639 1,967,061
595,196 1,979,733
603,889 2,007,095
479,194 2,110,494
655,599 2,136,221
Source: Village of Key Biscayne Finance Department.
2,089,015
1,203,221
1,358,573
2,451,483
2,575,828
2,728,459
2,756,453
2,822,380
2,428,949
3,462,454
1,029,087
1,029,087
1,011,971
981,847
1,010,931
917,449
862,165
753,385
698,927
734,422
23,612,423
23,803,363
21,457,341
22,992,342
23,656,748
24,045,319
25,546,835
28,436,391
29,919,819
31,981,359
84
VILLAGE OF KEY BISCAYNE, FLORIDA
NET ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY
LAST TEN FISCAL YEARS
Fiscal Year
Ended Tax Roll
September 30, Year
Real Property
Residential
Property
Commercial
Property
Total
Total Net Direct
Personal Assessed Tax
Property Value Rate
2009 2008
2010 2009
2011 2010
2012 2011
2013 2012
2014 2013
2015 2014
2016 2015
2017 2016
2018 2017
6,068,439,146
5,593,947,239
5,114,029,641
5,458,639,449
5,445,595,704
5,800,745,002
6,306,477,954
7,291,699,676
7,875,742,931
8,148,976,226
328,171,098
302,747,017
276,917,774
281,666,505
294,710,250
313,747,054
353,222,413
393,809,175
425,303,529
445,692,829
38,117,174 6,434,727,418 3.200
39,521,761 5,936,216,017 3.200
38,812,865 5,429,760,280 3.200
41,574,020 5,522,872,647 3.200
38,326,390 5,778,632,344 3.200
37,410,973 6,151,903,029 3.000
37,956,862 6,697,657,229 3.000
36,239,673 7,721,748,524 3.000
38,238,417 8,339,284,877 3.000
39,913,640 8,634,582,695 3.000
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.
Source: Miami -Dade County Property Appraiser's Office.
85
VILLAGE OF KEY BISCAYNE, FLORIDA
PROPERTY TAX RATES - DIRECT AND OVERLAPPING GOVERNMENTS
LAST TEN FISCAL YEARS
Village of Key Biscayne Overlapping Rates (1)
Miami -Dade County Miami -Dade Schools 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
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 7.775 0.199 7.974 0.035 0.158 1.011 17.294
2016 2015 3.000 3.000 4.667 0.450 5.117 7.413 0.199 7.612 0.032 0.146 0.993 16.900
2017 2016 3.000 3.000 4.667 0.400 5.067 7.138 0.184 7.322 0.032 0.136 0.979 16.536
2018 2017 3.000 3.000 4.667 0.400 5.067 6.774 0.220 6.994 0.032 0.128 0.934 16.154
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.
(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).
86
VILLAGE OF KEY BISCAYNE, FLORIDA
PRINCIPAL PROPERTY TAXPAYERS
CURRENT YEAR AND TEN YEARS AGO
2018
Taxpayer
Net
Taxable
Value
Percent of
Total
Village Net
Assessed
Rank Value
2009
Taxpayer
Percent of
Total
Net Village Net
Taxable Assessed
Value Rank Value
GB JT Hotel Partners LP
Red Dragon's Sands LTD
Galleria of Key Biscayne Inc
Timothy Bryan
United Real East Ventures Inc
Edgardo DeFortuna
240 Crandon Investments LLC
Boca Breeze LLC
Atlantic USA
Bruno Bich Trs
$ 70,200,000
31,228,584
28,000,000
22,565,090
21,159,478
19,906,254
16,500,000
16,265,234
15,962,203
14,775,462
$ 256.562.305
1 0.84%
2 0.37%
3 0.34%
4 0.27%
5 0.25%
6 0.24%
7 0.20%
8 0.20%
9 0.19%
10 0.18%
3.08%
SBR Fortune Associates
Galleria of Key Biscayne Inc
Key Biscayne Properties LLC
Red Dragon's Sands LTD
United Real Estate Ventures Inc
260 Cape FLA LLC
Teasurus Holdings Inc
Ocean Club Community Assoc
500 Bay LN LLC
Atlantic USA
$ 44,568,400 1 0.69%
19,300,000 2 0.30%
15,134,130 3 0.24%
14,568,368 4 0.23%
13,010,965 5 0.20%
12,995,950 6 0.20%
12,851,673 7 0.20%
12,500,000 8 0.19%
12,211,803 9 0.19%
12,088,150 10 0.19%
$ 169.229.439 2.63%
87
VILLAGE OF KEY BISCAYNE, FLORID]
PROPERTY TAX LEVIES AND COLLECTION
LAST TEN FISCAL YEAR.'
Collected within
Total Taxes the Fiscal Year Total Collections
Fiscal Year Levied for of the Levy Collections in to Date
Ended Fiscal Percent Subsequent Percent
September 30, Year Amount of Levy Year's Amount of Levy
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%
2018 25,940,310 24,992,663 96.35% 24,992,663 96.35%
Source: Village of Key Biscayne Finance Department and Miami -Dade County Tax Collector's Office
88
VILLAGE OF KEY BISCAYNE, FLORIDA
RATIOS OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
Governmental Activities
Business -type
Activities
Fiscal Year General Percent of Debt
Ended Obligation Revenue Loans Revenue Loans Household Per
September 30, Bonds Bonds Payable Bonds Payable Total Income (1) Capita
2009 32,040,160 4,835,000 2,387,341 39,262,501 0.25% 3,737
2010 29,950,678 4,450,000 4,695,812 39,096,490 0.26% 3,167
2011 27,757,222 4,130,000 4,497,388 36,384,610 0.29% 2,948
2012 25,543,132 3,655,000 4,254,706 33,452,838 0.33% 2,710
2013 28,759,034 3,170,000 4,148,944 36,077,978 0.31% 2,923
2014 30,897,605 6,255,000 3,946,308 41,098,913 0.28% 3,329
2015 28,101,157 5,955,000 3,736,933 37,793,090 0.32% 2,961
2016 24,969,498 9,135,000 167,484 34,271,982 0.43% 2,659
2017 21,731,237 8,464,278 143,485 30,339,000 0.43% 2,347
2018 21,532,747 5,296,354 -- 26,829,101 0.45% 2,082
(1) household income amounts are disclosed on page 83 on the demographic schedule
89
VILLAGE OF KEY BISCAYNE, FLORIDA
RATIOS OF GENERAL BONDED DEBT OUTSTANDING
LAST TEN FISCAL YEARS
The Village does not have general obligation debt.
90
VILLAGE OF KEY BISCAYNE, FLORIDA
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
2018
Government Unit
Net
Debt
Outstanding
Percentage
Applicable to
the Village of
Key Biscayne (1)
Amount
Applicable to
the Village of
Key Biscayne
Direct:
Village of Key Biscayne $ 21,731,237
Overlapping debt:
Miami -Dade County
Miami -Dade County School Board
Subtotal, Overlapping Debt
Total Direct and Overlapping Debt
1,837,515,000
902,981,000
100.00%
2.94%
2.65%
$ 21,731,237
54,048,683
23,913,612
77,962,295
$ 99,693,532
Sources: Data provided by the Miami -Dade County Finance Department and the Miami -Dade
County School Board.
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.
(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.
91
VILLAGE OF KEY BISCAYNE, FLORIDA
PLEDGED REVENUE COVERAGE
LAST TEN FISCAL YEARS
Fiscal Year Non -
Ended Ad Valorem Debt Service
September 30, Revenues Principal Interest Coverage
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
2018 13,205,925 3,771,867 726,658 2.53
Source: Village of Key Biscayne Finance Department.
92
VILLAGE OF KEY BISCAYNE, FLORIDA
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN FISCAL YEARS
Median Per Capita
Household Personal Unemployment
Year Population (1) Income (1) Income (1) Rate (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%
2018 12,887* 119,920 ** 63,614 ** 3.6%
Sources:
(1) City-data.com; *Bureau of Economic & Business Research, University of Florida
** ESRI estimates for 2018
(2) United States Bureau of Labor Statistics
93
VILLAGE OF KEY BISCAYNE, FLORIDA
PRINCIPAL EMPLOYERS
CURRENT YEAR AND NINE YEARS AGO
2018 2009
Percentage of Percentage of
Total Village Total Village
Employer Employees (l) Rank Employment Employees Rank Employment
Ritz Carlton Key Biscayne 1,500 1 not known 1,500 1 not known
Winn Dixie Stores, Inc. 142 3 not known 250 3 not known
Village of Key Biscayne 179 2 not known 116 4 not known
All remaining employers are of an extremely small number
Total 1,821
Notes: (1) All amounts are estimated for timely inclusion in report. Requests for information received no response.
Source: Village of Key Biscayne Finance Department.
94
VILLAGE OF KEY BISCAYNE, FLORIDA
FULL-TIME EQUIVALENT VILLAGE GOVERNMENT EMPLOYEES BY FUNCTION
LAST TEN FISCAL YEARS
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Number of Employees
General government 8 7 7 7 7 7 9 10 19 9
Public safety 69 70 68 69 74 74 77 78 76 85
Building, planning and zoning 13 13 13 15 17 17 14 14 14 16
Public works 4 4 4 4 4 4 5 4 5 5
Parks and recreation 10 10 10 10 12 10 9 10 11 10
Total Number of Employees 104 104 102 105 114 112 114 116 125 125
Source: Village of Key Biscayne Finance
95
VILLAGE OF KEY BISCAYNE, FLORIDA
OPERATING INDICATORS BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
Function/Pronram 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Public safety:
Police:
Police personnel and officers 31 32 30 30 33 34 36 38 35 36
Police calls for service 37,002 34,935 37,646 31,214 26,836 24,556 30,475 29,427 32,031 *
Parking violations 824 523 563 638 676 440 506 552 2,287 *
Traffic violations 975 1,425 1,269 1,542 1,875 846 939 956 1,531 *
Fire:
Fire personnel 38 38 38 39 41 40 41 40 41 42
Fire incidents 1,012 1,556 1,841 1,369 1,896 1,763 1,490 1,908 1,529 1,884
Fire inspections performed 229 267 469 323 469 739 667 770 995 991
Planning and development:
Building permits issued 3,650 4,371 3,723 3,402 3,885 3,876 3,684 3,501 3,746 2,935
Business tax receipts issued 1,095 1,129 1,165 1,187 937 987 1,097 1,219 1,088 1,896
Culture and recreation:
Number of building users 4,268 3,990 4,127 4,338 4,251 4,041 4,110 4,179 4,274 4.693
Solid waste:
Residential accounts
1,298 1.302 1,292 1,264 1,254 1.250 1,272 1,260 1,251 1,341
Sources: Various Village Departments.
* Data unavailable as the Police Department installed a new software in September 2018 and old data was inaccessible
96
VILLAGE OF KEY BISCAYNE, FLORIDA
CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
Function/Program 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
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 24.8
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 6
Culture and recreation:
Parks 3 3 3 3 3 3 3 4 4 4
Parks acreage 9 9 9 9 9 9 9 10 10 14.5
Community center 1 1 1 1 1 1 1 1 1 1
Swimming pools 1 1 1 1 1 1 1 I 1 1
Sources: Various Village Departments.
97
REPORTING SECTION
GOVERNMENT AUDITING STANDARDS
Government
Auditing Standards
Internal Control Over Financial Reporting
deficiency in internal control
material weakness
significant deficiency
Compliance and Other Matters
Government Auditing
Standards
Purpose of this Report
Government Auditing Standards
Report on Compliance for Major State Project
Florida Department of Financial Services’
Management’s Responsibility
Auditors’ Responsibility
Government Auditing
Standards
Opinion on Major State Project
Report on Internal Control Over Compliance
deficiency in internal control over compliance
material weakness in internal
control over compliance
significant deficiency in internal control over compliance
Report on Schedule of Expenditures of State Financial Assistance Required by Chapter
10.550, Rules of the Auditor General
State of Florida Department of Environmental Protection
Total State of Florida Department of Environmental Protection
Total Expenditures of State Financial Assistance
See notes to Schedule of State Financial Assistance.
.
Financial Statements
Unmodified Opinion
State Project
Unmodified Opinion
VILLAGE OF KEY BISCAYNE, FLORIDA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2018
SECTION II — FINANCIAL STATEMENT FINDINGS
None.
SECTION III — STATE FINANCIAL ASSISTANCE FINDINGS AND QUESTIONED
COSTS
None.
SECTION IV — PRIOR AUDIT FINDINGS
There were no prior year financial statement findings. The Village was not subject to a single
audit during the fiscal year ended September 30, 2017.
106
Auditors’ Responsibility
Government Auditing
Standards,
Other Reporting Requirements
Government Auditing Standards
AICPA Professional Standards
Prior Audit Findings
Official Title and Legal Authority
Financial Condition and Management
Additional Matters
Purpose of this Letter
MARCUM
ACCOUNTANTS ADVISORS
INDEPENDENT ACCOUNTANTS' REPORT ON COMPLIANCE PURSUANT TO
SECTION 218.415 FLORIDA STATUTES
To the 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, 2018. 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, 2018.
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.
`7/162 ,cr4xc, L L P
Miami, FL
June 28, 2019
109
MARCUMGROUP
MEMBER
Marcum LLP
One Southeast Third Avenue Suite 1100 • Miami, Florida 33131 • Phone 305.995.9600 • Fax 305.995.9601 • www.marcumllp.com