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VILLAGE OF KEY BISCAYNE, FLORIDA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FISCAL YEAR ENDED SEPTEMBER 30, 2020
VILLAGE OF KEY BISCAYNE, FLORIDA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
Prepared by:
THE FINANCE DEPARTMENT
VILLAGE OF KEY BISCAYNE, FLORIDA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
TABLE OF CONTENTS
Introductory Section
Letter of Transmittal .................................................................................................................. i-v
Village Officials .......................................................................................................................... vi
Certificate of Achievement for Excellence in Financial Reporting ........................................... vii
Organizational Chart ................................................................................................................. viii
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 .................................................................................. 24-67
Required Supplementary Information (Other Than MD&A)
Budgetary Comparison Schedule – General Fund ......................................................................68
Budgetary Comparison Schedule – Transportation Special Revenue Fund ...............................69
Budgetary Comparison Schedule – Pros Land Trust Special Revenue Fund .............................70
Notes to Budgetary Comparison Schedules ................................................................................71
Schedule of Changes in the Village’s Net Pension Liability and
Related Ratios – Pension Trust Fund .......................................................................................72
Schedule of Village Contributions – Pension Trust Fund ..........................................................73
Schedule of Investment Returns – Pension Trust Fund ..............................................................74
Schedule of Changes in Total OPEB Liability and
Related Ratios ..........................................................................................................................75
VILLAGE OF KEY BISCAYNE, FLORIDA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
TABLE OF CONTENTS
Supplementary Information
Budgetary Comparison Schedule – Capital Improvements Fund ...............................................76
Statistical Section
Statistical Section Contents ........................................................................................................77
Net Position by Component ........................................................................................................78
Changes in Net Position ........................................................................................................ 79-80
Fund Balances of Governmental Funds ......................................................................................81
Changes in Fund Balances of Governmental Funds ...................................................................82
General Governmental Tax Revenues by Source .......................................................................83
Net Assessed Value and Estimated Actual Value of Taxable Property .....................................84
Property Tax Rates – Direct and Overlapping Governments .....................................................85
Principal Property Taxpayers ......................................................................................................86
Property Tax Levies and Collections ..........................................................................................87
Ratios of Outstanding Debt by Type ..........................................................................................88
Ratios of General Bonded Debt Outstanding .............................................................................89
Direct and Overlapping Governmental Activities Debt .............................................................90
Pledged Revenue Coverage ........................................................................................................91
Demographic and Economic Statistics .......................................................................................92
Principal Employers ....................................................................................................................93
Full-Time Equivalent Village Government Employees by Function .........................................94
Operating Indicators by Function/Program ................................................................................95
Capital Asset Statistics by Function/Program ............................................................................96
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 ................... 97-98
Independent Auditors’ Report on Compliance for Each Major Federal Program
and State Project and Report on Internal Control Over Compliance Required
by the Uniform Guidance and Chapter 10.550, Rules Of the Auditor General ............... 99-100
Schedule of Expenditures of Federal Awards and State Financial Assistance .........................101
Notes to Schedule of Expenditures of Federal Awards and State Financial
Assistance ..............................................................................................................................102
VILLAGE OF KEY BISCAYNE, FLORIDA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
TABLE OF CONTENTS
Reporting Section (continued)
Schedule of Findings and Questioned Costs ..................................................................... 103-109
Summary Schedule of Prior Audit Findings .............................................................................110
Management Letter in Accordance with the Rules of the Auditor General of the
State of Florida ............................................................................................................... 111-112
Appendix A - Current Year and Prior Years Recommendations to Improve
Financial Management ................................................................................................... 113-114
Independent Accountants’ Report on Compliance Pursuant to Section 218.415
Florida Statutes ......................................................................................................................115
Corrective Action Plan......................................................................................................116-117
INTRODUCTORY SECTION
i
March 26, 2021
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 (Annual Report) of the Village of Key Biscayne (the
Village) for the fiscal year ended September 30, 2020.
The Annual Report consists of management’s representation concerning the finances of
the Village of Key Biscayne. Consequently, management assumes full responsibility for the
completeness and reliability of all of the information presented in this Annual Report. To
provide a reasonable basis for making these representations, management of the Village
of Key Biscayne has established a comprehensive internal framework that is designed both
to protect the Village’s assets from loss, theft, or misuse and to compile sufficient reliable
information for the preparation of the Village of Key Biscayne’s financial statements in
conformity with GAAP. Because the cost of internal controls should not outweigh their
benefits, the Village of Key Biscayne’s comprehensive framework of internal controls has
been designed to provide reasonable, rather than absolute, assurance that the financial
statements will be free from material misstatement. As management, we assert that, to
the best of our knowledge and belief, this Annual Report is complete and reliable in all
material respects.
As a recipient of federal, state and county financial assistance, the Village of Key Biscayne
is also responsible for ensuring an adequate internal control structure is in place to ensure
compliance with applicable laws and regulations related to those programs. As of
September 30, 2020, the Village of Key Biscayne was required to undergo an annual single
audit performed under the provisions of the US Office of Management and Budget Uniform
Guidance and Chapter 10.550, Rules of the Auditor General, State of Florida. The
information related to the Single Audit, including the schedule of expenditure of federal
awards and state financial assistance (SEFA), findings and recommendations, and auditors’
reports on the internal control and compliance with applicable laws and regulations are
included in the reporting section of the Annual Report .
V lLLAG JE JF JK JEY AYNJE
88 West Mclntyre Street • K ey Biscayn e, Florida 33149 • (305) 365-5511 • www.keybiscayne.fl.gov
MISSION ST T F.M F.NT: ·--ro l'ROVID F. A S1\FF.. ()lJ AI.ITY COM 1 lJ 'ITY F.NVIRO M F. "T FOR Al.I. ISi. '11 F.RS Tl mo (,11 ll F.Sl'O 'SI BI.F. C,OVF.R M F.i':T,"
ii
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, 2020 are free of material misstatements.
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 financial audit, that there was a
reasonable basis for rendering unmodified opinions that the Village of Key Biscayne’s
financial statements for the fiscal year ended September 30, 2020 are fairly presented in
conformity with GAAP. As part of the federal and state single audit, the independent
auditor concluded that the SEFA is fairly stated, in all material respects, in relation to the
basic financial statements as a whole. The independent auditors’ report is presented as
the first component of the financial section of this Annual Report.
GAAP requires that management provide a narrative introduction, overview, and analysis
to accompany the basic financial statements in the form of Management’s Discussion and
Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and
should be read in conjunction with it. The Village of Key Biscayne’s MD&A can be found
immediately following the independent auditors’ report.
Profile of the Government
The Village of Key Biscayne, incorporated in 1991, is located on the southernmost barrier
island of the United States, Miami‐Dade County, Florida approximately 7.5 miles off the
coast of Miami, Florida. The Village of Key Biscayne occupies a land area of 1.25 square
miles situated between Crandon Park and Bill Baggs State Recreation Area. The Village
serves a population of approximately 13,300. The Village of Key Biscayne receives tax levies
on real and personal property located inside its boundaries.
The Village of Key Biscayne operates under the council‐manager form of government.
Policymaking and legislative authority are vested in a governing council consisting of the
mayor and six other council members. The Council is responsible for, among other things,
passing ordinances and resolutions, adopting the annual budget, appointing the Village
Manager, the Village Clerk, and the Village Attorney. The Village Manager is responsible
for carrying out the policies and ordinances of the Council, for overseeing the daily
operations of the government, and for appointing the heads of various departments.
V lLLAG JE JF JK JEY AYNJE
88 West Mclntyre Street • K ey Biscayn e, Florida 33149 • (305) 365-5511 • www.keybiscayne.fl.gov
MISSION ST T F.M F.NT: ·--ro l'ROVID F. A S1\FF.. ()lJ AI.ITY COM 1 lJ 'ITY F.NVIRO M F. "T FOR Al.I. ISi. '11 F.RS Tl mo (,11 ll F.Sl'O 'SI BI.F. C,OVF.R M F.i':T,"
iii
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 30, the close of the Village’s fiscal year.
The appropriated budget is prepared by fund and department. No department may legally
expend in excess of the amount appropriated for that 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 Annual Report for the General Fund, the
Transportation Special Revenue Fund, the PROS Land Trust Special Revenue Fund, and the
Capital Improvements Fund for which an appropriated annual budget has been adopted.
The budgetary comparison schedules and related notes for the General Fund and special
revenue funds are presented as part of the required supplementary information section of
this Annual Report. The budgetary comparison schedule for the Capital Improvements
Fund is presented as part of the supplementary information section.
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.
V lLLAG JE JF JK JEY AYNJE
88 West Mclntyre Street • K ey Biscayn e, Florida 33149 • (305) 365-5511 • www.keybiscayne.fl.gov
MISSION ST T F.M F.NT: ·--ro l'ROVID F. A S1\FF.. ()lJ AI.ITY COM 1 lJ 'ITY F.NVIRO M F. "T FOR Al.I. ISi. '11 F.RS Tl mo (,11 ll F.Sl'O 'SI BI.F. C,OVF.R M F.i':T,"
iv
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.
The Village has been able to withstand the economic and operational impacts of the recent
outbreak of coronavirus known as COVID‐19. The duration and full impacts of the business
and social disruptions of COVID‐19 are yet unknown and could result in a downturn on the
local, state, and global economies. Through the prior economic downturn, The Village
maintained its strong financial position through prudent long‐term financial planning and
fiscal actions to reduce or contain fixed costs and maintain its committed emergency fund
balance. The extent to which COVID‐19 may impact the Village’s long‐term financial
condition or results of operations is uncertain and cannot be predicted.
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
Annual Report for the fiscal year ended September 30, 2019. This was the twenty‐seventh
consecutive year that the Village received this prestigious award. In order to be awarded
a Certificate of Achievement, the government published an easily readable and efficiently
organized Annual Report. The Annual 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 Annual Report continues to meet the Certificate of Achievement Program’s
requirements and are submitting it to the GFOA to determine its eligibility for another
certificate.
V lLLAG JE JF JK JEY AYNJE
88 West Mclntyre Street • K ey Biscayn e, Florida 33149 • (305) 365-5511 • www.keybiscayne.fl.gov
MISSION ST T F.M F.NT: ·--ro l'ROVID F. A S1\FF.. ()lJ AI.ITY COM 1 lJ 'ITY F.NVIRO M F. "T FOR Al.I. ISi. '11 F.RS Tl mo (,11 ll F.Sl'O 'SI BI.F. C,OVF.R M F.i':T,"
ThepreparationofthisAnnualReportwouldnothavebeenpossiblewithouttheefficient
anddedicatedservicesoftheentirestaffofalldepartmentsoftheVillageofKeyBiscayne.
Wewouldliketoexpressourappreciationtoallmembersofallofthedepartmentswho
assistedandcontributedtothepreparationofthisAnnualReport.Wewouldalsoliketo
expressourappreciationtoMarcumLLP,ourindependentauditors,fortheirassistance
andeffortsinhelpingtheVillagepreparetheAnnualReport.Appreciationisalsoextended
totheMayorandtheVillageCouncilfortheirunfailingsupportformaintainingthehighest
standardsofprofessionalisminthemanagementoftheVillageofKeyBiscayne’sfinances.
Respectfullysubmitted,
CharlesR.PressBenjaminL.Nussbaum,CPA
InterimVillageManagerChiefFinancialOfficer
v
VlLLAGE JF JK EY CA Yl'JE
88 West McIntyre Street • Key Biscayn e, Florida 33149 • (305) 365-5511 • www.keybiscayne .fl .gov
MISSl()N ST/\TF.M F.NT: ·TO PROVIO F. I\ S;\FF.. ()U/\1.ITY COM 1U 'ITY F.NVIRO, M F. 1T FOR /\I .I . ISi . O F.RS THRO 011 R F.SI'() 'Sl lll .F. CiOVF.R , M F.NT:·
vi
VILLAGE OF KEY BISCAYNE, FLORIDA
VILLAGE OFFICIALS
AS OF SEPTEMBER 30, 2020
VILLAGE COUNCIL
Michael W. Davey, Mayor
Brett G. Moss, Vice Mayor
Edward London, Councilmember
Ignacio J. Segurola, Councilmember
Allison McCormick, Councilmember
Kathleen Petros, Councilmember
Luis Lauredo, Councilmember
VILLAGE MANAGER
Andrea Agha
VILLAGE CLERK
Jocelyn Brewster Koch
VILLAGE ATTORNEY
Weiss Serota Helfman Pastoriza Cole & Boniske, P.A.
CHIEF FINANCIAL OFFICER
Benjamin L. Nussbaum, CPA, CGMA, CPPT
INDEPENDENT AUDITORS
Marcum LLP
vii
Government F inan ce Officers Associati on
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
Village of Key Biscayne
Florida
For its Comprehensive Amma l
Financial Report
For the Fiscal Year E nded
September 30, 2019
Executive Directo r/CEO
Organizational Chart
Budget Year 2019-2020
Village Residents
Village Council
Village Attorney Village Manager
Finance
Accounting
Investments
Grants
Information
Technology
Building, Zoning &
Planning
Flood Plain
Management
Building
Zoning
Planning
Code
Compliance
Public Works
Capital
Improvements
Stormwater Utility
Rights-of-Way
Transportation &
Transit
Shoreline
Protection
Solid Waste
Facility
Management
Fire-Rescue
Fire Response
Rescue
Emergency
Management
Fire Prevention
Police
Traffic
Patrol
Marine
Investigative/
Crime
Property/
Evidence
Crime Prevention
Fleet
Management
Parks, Recreation,
& Open Spaces
Parks & Open
Spaces
Community
Center
Athletics
Senior Services
Community
Groups
Human Resources
& Risk
Management
Procurement
Strategic Planning Budget
Communications Resiliency &
Sustainability
Village Clerk
Advisory Boards
“To provide a safe, quality environment for all islanders through responsible government.”
viii
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
To the Honorable Mayor, Village Council and Interim 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 and each major fund of the Village of Key Biscayne, Florida (the Village),
as of and for the fiscal year ended September 30, 2020, 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.
MARCUM
ACCOUNTANTS • ADVISORS
Ill
MARCUM GROUP
MEMBER
2
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our audit opinions.
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, the business-type activities and each
major fund of the Village, as of September 30, 2020, 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 13, the budgetary comparison schedules
and related notes on pages 68 through 72, and the required supplementary information for the
pension trust fund and Other Post-Employment Benefits on pages 73 to 76 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.
Supplementary and 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 budgetary comparison schedule
for the capital improvements fund, the schedule of expenditures of federal awards and state
financial assistance, as required by Title 2 U.S. Code of Federal Regulations Part 200, Uniform
Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards
(Uniform Guidance), Chapter 10.550, Rules of the Auditor General and the introductory and
statistical sections are presented for additional purposes and are not a required part of the basic
financial statements.
3
The budgetary comparison schedule for the capital improvements fund and the schedule of
expenditures of federal awards and state financial assistance is the responsibility of management
and was derived from and relate directly to the underlying accounting and other records used to
prepare the basic financial statements. Such information has been subjected to the auditing
procedures applied in the audit of the basic financial statements and certain additional procedures,
including comparing and reconciling such information directly to the underlying accounting and
other records used to prepare the basic financial statements or to the basic financial statements
themselves, and other additional procedures in accordance with auditing standards generally
accepted in the United States of America. In our opinion, the budgetary comparison schedule for the
capital improvements fund and the schedule of expenditures of federal awards and state financial
assistance are fairly stated, in all material respects, in relation to the basic financial statements as a
whole.
The introductory and statistical sections have not been subjected to the auditing procedures applied
in the audit of the basic financial statements, and accordingly, we do not express an opinion or
provide any assurance on it.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated March 26,
2021 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
March 26, 2021
MANAGEMENT’S DISCUSSION AND ANALYSIS
(MD&A)
4
Management’s Discussion and Analysis
As management of the Village of Key Biscayne, Florida (the Village) we offer readers of the Village’s
financial statements this narrative overview and analysis of the financial activities of the Village of Key
Biscayne for the fiscal year ended September 30, 2020. 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-v 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 $99,621,889, an increase of $3,955,493.
At the close of the current fiscal year, the Village’s governmental activities reported an ending net
position of $95,515,263, an increase of $3,185,203 in comparison with the prior year.
In the General Fund, revenues exceeded expenditures by $1,901,372.
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 and other 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, zoning and planning.
5
The government-wide financial statements include only the Village of Key Biscayne itself (known as the
primary government).
The government-wide financial statements can be found on pages 14 and 15 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 statements focus on near-term inflows and outflows
of spendable resources as well as on balances of spendable resources available at the end of the fiscal year.
Such information may be useful in evaluating a government’s near-term financing requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial statements,
it is useful to compare the information presented for the governmental funds with similar information
presented for governmental activities in the government-wide financial statements. By doing so, readers
may better understand the long-term impact of the government’s near-term financing decisions. Both the
governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and
changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds
and governmental activities.
The Village of Key Biscayne maintains four governmental funds: the general fund; two special revenue
funds, one for transportation and one for parks, recreation, and open space (PROS) land trust; and a capital
improvement projects fund.
The Village of Key Biscayne adopts an annual appropriated budget for its general fund, the transportation
special revenue fund, the PROS land trust special revenue fund, and the capital improvements fund. The
budgetary comparison schedules for the general fund and special revenue funds are presented as part of the
required supplementary information. The budgetary comparison schedule for the capital improvements
fund is presented as supplementary information.
The basic governmental fund financial statements can be found on pages 16 to 18 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 and Solid Waste Collection operations. The
basic proprietary fund financial statements can be found on pages 19-21 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 Village has one Fiduciary fund, its Pension
Trust Fund for police officers and firefighters. Other Village employees participate in a defined
contribution plan, which is not part of the Village’s financial statements.
The basic fiduciary fund financial statements can be found on pages 22-23 of this report.
6
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 24-67. The notes should always be read in conjunction
with the financial statements themselves because they contain relevant, useful, and expanded information
that cannot always be communicated on the face of the basic financial statements.
Other Information
In addition to the basic financial statements and accompanying notes, this report also presents certain
required supplementary information including budgetary comparisons and the Village’s progress in funding
its obligations to provide pension benefits and other post-employment benefits to its employees.
Required supplementary information can be found on pages 68-76 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 $99,621,889 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 $80,436,375. The Village of Key Biscayne uses these capital assets to provide services to
citizens; consequently, these assets are not available for future spending.
Our analysis of the financial statements of the Village begins below. The Statement of Net Position and the
Statement of Activities report information about the Village’s activities that will help answer questions
about the financial position of the Village. A comparative analysis is provided with prior year information.
Net Position
A Summary of the Village’s Net Position is presented in Table A-1 and a Summary of the Changes in Net
Position is presented in Table A-2.
2020 2019 2020 2019 2020 2019
Current assets 28,039,292$ 31,180,935$ 1,803,944$ 1,025,254$ 29,843,236$ 32,206,189$
Capital assets, net 92,058,414 91,002,529 6,784,445 7,004,137 98,842,859 98,006,666
Total Assets 120,097,706 122,183,464 8,588,389 8,029,391 128,686,095 130,212,855
Deferred Outflows of Resources 3,286,372 2,138,032 -- -- 3,286,372 2,138,032
Current liabilities 3,204,808 4,650,861 274,462 114,272 3,479,270 4,765,133
Noncurrent liabilities 23,680,062 25,444,753 4,207,301 4,578,783 27,887,363 30,023,536
Total Liabilities 26,884,870 30,095,614 4,481,763 4,693,055 31,366,633 34,788,669
Deferred Inflows of Resources 983,945 1,895,822 -- -- 983,945 1,895,822
Net investment in
capital assets 77,859,231 72,480,963 2,577,144 4,509,508 80,436,375 76,990,471
Restricted 3,529,727 8,639,324 -- -- 3,529,727 8,639,324
Unrestricted 14,126,305 11,209,773 1,529,482 (1,173,172) 15,655,787 10,036,601
Total Net Position 95,515,263$ 92,330,060$ 4,106,626$ 3,336,336$ 99,621,889$ 95,666,396$
Table A - 1
Summary of Net Position
Governmental Activities Business-type Activities Total
7
Net Position (continued)
As demonstrated in Table A-1, Summary of Net Position, the Village’s Net Position increased by $3,955,493. This
resulted from reductions in long-term liabilities provided for with resources from the current year. Capital Assets
increased by approximately $1.1 million in the Governmental Activities, and decreased by approximately $220
thousand, in the Business-type Activities. The increase in the Governmental Activities was attributed to new capital
improvement projects being capitalized and the decrease in Business-type Activities as a result of existing assets
being depreciated.
Capital grants and contributions increased by $1.0 million as a result of grant revenue from FEMA to reimburse
expenditures incurred during Hurricane Irma. The Franchise Fee increase of $645,082 is attributed to a new franchise
fee agreement directly with Florida Power & Light effective May 2020.
The Village was able to reduce certain payroll expense in Public Safety as a result of the net recognized pension
expense in 2020 as compared to 2019. Pension related Deferred Outflows/Inflow of Resources are recognized
(amortized) in accordance with Governmental Accounting Standards Board (GASB) Statement No. 68. As such,
current year pension expense include certain components which are being recognized over a closed period that is
determined by the average remaining service period of the plan members (both current and former employees,
including retirees) or over a closed five-year period. Parks and Recreation expenditures decreased during 2020 as a
result of community center closures and special event cancellations amidst the COVID-19 pandemic.
2020 2019 2020 2019 2020 2019
Revenues
Program revenues:
Charges for services 4,347,034$ 4,813,768$ 2,625,450$ 1,758,116$ 6,972,484$ 6,571,884$
Operating grants and contributions 323,185 62,174 -- -- 323,185 62,174
Capital grants and contributions 1,516,214 475,058 -- -- 1,516,214 475,058
General revenues:
Property taxes 25,532,172 25,400,645 -- -- 25,532,172 25,400,645
Utility taxes 2,224,417 2,128,389 -- -- 2,224,417 2,128,389
Communications services tax 651,615 681,648 -- -- 651,615 681,648
Franchise fees 837,835 192,753 -- -- 837,835 192,753
Unrestricted intergovernmental revenue 2,419,835 2,667,562 -- -- 2,419,835 2,667,562
Investment income and miscellaneous 337,591 404,215 9,540 22,584 347,131 426,799
Total Revenues 38,189,898 36,826,212 2,634,990 1,780,700 40,824,888 38,606,912
Total General Revenues, and
Contributions 38,189,898 36,826,212 2,634,990 1,780,700 40,824,888 38,606,912
Expenses
General government 6,427,517 5,343,922 -- -- 6,427,517 5,343,922
Public Safety 17,456,432 19,195,822 -- -- 17,456,432 19,195,822
Parks and Recreation 4,867,328 6,202,034 -- -- 4,867,328 6,202,034
Public Works 3,449,872 3,358,261 -- -- 3,449,872 3,358,261
Building, Zoning and Planning 2,346,614 2,467,478 -- -- 2,346,614 2,467,478
Interest on long-term debt 456,932 658,587 -- -- 456,932 658,587
Stormwater -- -- 1,108,192 856,653 1,108,192 856,653
Solid waste collection -- -- 756,508 779,508 756,508 779,508
Total Expenses 35,004,695 37,226,104 1,864,700 1,636,161 36,869,395 38,862,265
Changes in Net Position 3,185,203 (399,892) 770,290 144,539 3,955,493 (255,353)
Net Position, Beginning 92,330,060 92,729,952 3,336,336 3,191,797 92,582,748 95,921,749
Net Position, Ending 95,515,263$ 92,330,060$ 4,106,626$ 3,336,336$ 99,621,889$ 95,666,396$
Table A - 2
Summary of Changes in Net Position
Governmental Activities Business-type Activities Total
8
Net Position (continued)
Revenues by Source -Governmental Activities
Operating Grants & Capital Contributions, $1,839,399, 5%
Charges for Services, --------:::r",--,
$4,347,034, 11%
Intergovernmental,
$2,419,835, 6%
Communications Servic
Tax, $651,615, 2%
Franchise Fees, $837,835, 2%
• Ad Valorem Taxes
Utility Taxes
• Franchise Fees
• Intergovernmental
• Operating Grants & Capital Contributions • Investment Earnings & Misc.
Investment Earnings & Misc., $337,591, 1%
\_ Ad Valorem Taxes,
$25,532,172, 66.86%
• Communications Services Tax
• Charges for Services
Expenses -Governmental Activities
Building, Zoning and Planning,
$2,346,614, 6. 70%
Interest on Long Term Debt,
$456,932, 1.31%
Parks and Recreation,
$4,867,328, 13.90%
• General Government
Fire
• Interest on Long Term Debt
• Public Works
■ Parks and Recreation
General Government,
$6,427,517, 18.36%
Police, $8,635,877,
24.67%
• Police
• Building, Zoning and Planning
9
Business-type Activities
Business-type Activities increased the Village’s net position by $770,290. Stormwater Utility
System Fund Net Position increased by $464,877, as a result of the implementation of an
increased Equivalent Residential Unit (ERU) user fee. In December 2019, the ERU fee
increased from $8.90 to $16.90. The Solid Waste fund increased its Net Position by $305,413,
due to the billing of interest and penalties on delinquent accounts. The pie charts below
illustrate the various sources of revenues and expenditures of the Business-type Activities:
Revenues by Source -Business-Type Activities
Stormwater Charges,
$1,563,529 , 60%
■ Solid Waste Charges ■ Stormwater Charges
Expenses -Business-Type Activities
Stormwater,
$1,108,192 , 59"
■ Solid Waste ■ Stormwater
10
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 $16,799,905. The change in
fund balance in the General Fund increased approximately $3.8 million when compared to prior year (a
positive change in fund balance of approximately $1.7 million in 2020 compared to a negative change in
fund balance of $2.1 million in prior year). The increase in the change in fund balance is primarily due to
the significant reduction in transfers outs of the General Fund in fiscal year 2020 as oppose to the prior year
which had a transfer out from the General Fund assigned fund balance to the Capital Improvements Fund
in the amount of $4.3 million.
The Village’s Assigned and Committed General Fund balances, together with the balance of the 1% ad-
valorem transfers into the PROS Land Trust can be used by the Village, with Council approval, in case of
an emergency. Together, these fund balances amount to $17 million, or roughly 50% of the fiscal year
2020 General Fund expenditures. This represents approximately 6 months of General Fund operating
expenditures.
A summary of the general fund’s balance sheet and statement of revenues, expenditures and changes in
fund balance is presented in Table B-1 and B-2 for September 30, 2020 and 2019, is as follows:
2020 2019
Total Assets 19,932,639$ 26,209,109$
Total Liabilities 3,132,734$ 11,101,605$
Fund Balance
Nonspendable 588,364 1,289,443
Restricted 214,093 869,868
Committed 3,378,792 4,000,000
Assigned 12,618,656 8,948,193
Total Fund Balance 16,799,905 15,107,504
Total Liabilities and Fund Balance 19,932,639$ 26,209,109$
Table B-1
Summary of General Fund Balance Sheet
2020 2019
Total Revenues 35,822,594$ 35,440,707$
Total Expenditures 33,921,222 33,262,890
Excess of Revenues over Expenditures 1,901,372 2,177,817
Total Other Financing Sources (Uses)(208,971) (4,292,381)
Change in Fund Balance 1,692,401$ (2,114,564)$
Table B-2
Revenues, Expenditures and Changes in Fund Balances
Summary of General Fund Statement of
11
Overall, total General Fund revenues in fiscal year 2020 were $35,822,594, an increase of $381,887
compared to fiscal year 2019 amount of $35,440,707, or 1.1%. Expenditures totaled $33,921,222 for fiscal
year 2020, an increase of $658,332 compared to fiscal year 2019 amount of $33,262,890, or 2.0%.
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 debt service. The
transportation surtax revenues funds transit services and transportation projects. In fiscal year 2020, the
Transportation Fund shows a fund balance of $1,695,812, a decrease of $340,644 as a result of a transfer
to the CIP Fund for transportation projects.
The Parks, Recreation, and Open Space (PROS) Land Trust Fund was established for use in acquiring
parks and recreational lands for parks and open space purposes. The fund receives 1% of all ad-valorem
revenue. In fiscal year 2020, properties at 571 & 599 Harbor Dr. were acquired for $4.1 million for the
purpose of creating a resilient park which would improve the Village’s FEMA National Flood Insurance
Community Rating System. At the end of fiscal year 2020, the PROS Land Trust Fund shows a fund balance
of $3,555,854.
The Capital Improvement Fund historically receives an annual budgeted transfer of surplus funds from
the General Fund to pay for capital improvements. Fiscal year 2020 had reflected a positive committed
balance of $3,183,867, which was made up of various projects detailed in the annually adopted Capital
Improvement Plan. This is a $892,426 increase from the fund balance in fiscal year 2019 as the fund
received transfers in from both the General and Transportation Special Revenue Funds. 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
The General Fund had a favorable $1,629,985 budget to actual performance, representing additional revenues
over expenditures, but before operating transfers out to other funds. Notable highlights were:
Revenues
Ad-valorem revenues were $304,178 higher than budgeted as collections were in excess of
the legal requirement to budget at 95% of taxes levied. Non-budgeted FEMA reimbursement
for Hurricane Irma were received in the amount of $1.45 million and Interest Income was
$93,369 higher than budgeted as the Village implemented a cash flow management system
and re-negotiated with banks to increase investment income.
Expenditures
General Fund total governmental expenditures were $1.61 million, or 4.5% less than
expected. The decrease was caused by the effects of COVID-19 pandemic on the Village’s
operations and projects.
Capital Assets
As of September 30, 2020, the Village’s capital assets, net of accumulated depreciation, amounted to
$98,842,859, compared to $98,006,666 for the prior year. Major capital asset events during the fiscal year
included the following:
12
571 Harbor Dr. land acquisition for resilient park
599 Harbor Dr. land acquisition for resilient park
Sports Lighting
Fire station radios
Additional information on the Village’s capital assets can be found in Note 7 on pages 43-44 of this report.
Debt Administration
At September 30, 2020, the Village had bonded debt outstanding of $18,187,421 (composed of $13,980,120 in
governmental activities and $4,207,301 of business-type activities) compared to $22,412,722 as of September
30, 2019. The decrease was the result of the Village making its required debt service payments for the fiscal
year ended 2020, as there was no new debt issued during the year.
Additional information on the Village’s long-term debt can be found in Note 8 on pages 45-54 of this report.
Economic Factors and Next Year’s Budgets and Rates
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
2020 and fiscal year 2021 is 3.1950 and 3.2022, respectively.
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.
The Village’s median age is 44.9 years. The median household income is $141,416 and the median home
value is $1,381,281. The median net worth is $399,876. The average renter’s expense is $7,066 monthly
and the average homeowner’s monthly expense is $35,222 (inclusive of mortgage principal and
interest). Nearly three-fourths of the households have college degrees and 91% of all households have
some college. Seventy-seven percent (compared to 9% nationally) 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 23% 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 and are active in fitness pursuits.
The Village has 5,832 workers, with about 78% 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-one
percent of the workers are white collar and the unemployment rate was 5.1%. 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.
13
The emergence of the COVID-19 pandemic caused business and social disruption to the global economy. The
financial impact of this pandemic on the global economy is not readily determinable as of the date of issuance
of this Comprehensive Annual Financial Report (Annual Report). The extent to which the COVID-19
pandemic may financially impact the Village will depend on future developments, which are uncertain and
cannot be predicted, including new information which may emerge concerning the severity of the COVID-19
pandemic and the actions required to contain it or treat its impact.
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.
Reliance upon Intergovernmental Revenue. The Village received $2.9 million in revenue from other
governments during fiscal year 2020, or about 7.6% 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 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, nourishment of its beaches, and
roadway and stormwater system improvements. The cost of these improvements will be tens of millions of
dollars, however the Village believes they will be affordable to the property owners over time. Subsequent to
the issuance of the Annual Report, the Village approved a referendum to issue General Obligation (GO) Debt
as a funding source for these large infrastructure improvements. All of these factors were considered in the
preparation of the Village’s budget for the 2021 fiscal year.
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 19,202,299$ 848,437$ 20,050,736$
Investments 3,188,504 -- 3,188,504
Receivables, net 3,009,858 1,176,558 4,186,416
Prepaid items 303,386 -- 303,386
Internal balances 221,051 (221,051) --
Restricted assets:
Cash 1,900,101 -- 1,900,101
Investments 214,093 -- 214,093
Capital assets not being depreciated 39,894,409 172,455 40,066,864
Capital assets being depreciated, net 52,164,005 6,611,990 58,775,995
Total Assets 120,097,706 8,588,389 128,686,095
Deferred Outflows of Resources
Pension 3,286,372 -- 3,286,372
Liabilities
Accounts payable and accrued liabilities 2,134,903 274,462 2,409,365
Accrued interest payable 62,621 -- 62,621
Unearned revenue 442,013 -- 442,013
Due to pension fund 565,271 -- 565,271
Noncurrent liabilities:
Due within one year 4,145,922 -- 4,145,922
Due in more than one year 14,144,811 4,207,301 18,352,112
Net pension liability 4,954,221 -- 4,954,221
Total OPEB liability 435,108 -- 435,108
Total Liabilities 26,884,870 4,481,763 31,366,633
Deferred Inflows of Resources
Pension 635,430 -- 635,430
OPEB 348,515 -- 348,515
Total Deferred Inflows of Resources 983,945 -- 983,945
Net Position
Net investment in capital assets 77,859,231 2,577,144 80,436,375
Restricted:
Transportation 764,463 -- 764,463
Law enforcement 214,093 -- 214,093
Open space land trust 2,551,171 -- 2,551,171
Unrestricted 14,126,305 1,529,482 15,655,787
Total Net Position 95,515,263$ 4,106,626$ 99,621,889$
VILLAGE OF KEY BISCAYNE, FLORIDA
STATEMENT OF NET POSITION
SEPTEMBER 30, 2020
The accompanying notes are an integral part of these financial statements.
14
Charges Operating Capital Business-
for Grants and Grants and Governmental type
Functions/Programs Expenses Services Contributions Contributions Activities Activities Total
Governmental Activities
General government 6,427,517$ 185,995$ --$1,054,835$ (5,186,687)$ --$(5,186,687)$
Police 8,635,877 ------ (8,635,877) -- (8,635,877)
Fire 8,820,555 158,932 ---- (8,661,623) -- (8,661,623)
Public works 3,449,872 ---- 461,379 (2,988,493) -- (2,988,493)
Building, zoning and planning 2,346,614 1,151,242 ---- (1,195,372) -- (1,195,372)
Parks and recreation 4,867,328 2,850,865 323,185 -- (1,693,278) -- (1,693,278)
Interest on long-term debt 456,932 ------ (456,932) -- (456,932)
Total Governmental Activities 35,004,695 4,347,034 323,185 1,516,214 (28,818,262) -- (28,818,262)
Business-type Activities
Stormwater 1,108,192 1,563,529 ------ 455,337 455,337
Solid waste 756,508 1,061,921 ------ 305,413 305,413
Total Business-type Activities 1,864,700 2,625,450 ------ 760,750 760,750
Total 36,869,395$ 6,972,484$ 323,185$ 1,516,214$ (28,818,262) 760,750 (28,057,512)
General Revenues
Property taxes 25,532,172 -- 25,532,172
Franchise fees based on gross receipts 837,835 -- 837,835
Utility taxes 2,224,417 -- 2,224,417
Communications services tax 651,615 -- 651,615
Unrestricted intergovernmental revenue 2,419,835 -- 2,419,835
Unrestricted investment earnings 193,943 9,540 203,483
Miscellaneous 143,648 -- 143,648
Total General Revenues 32,003,465 9,540 32,013,005
Change in Net Position 3,185,203 770,290 3,955,493
Net Position - Beginning 92,330,060 3,336,336 95,666,396
Net Position - Ending 95,515,263$ 4,106,626$ 99,621,889$
VILLAGE OF KEY BISCAYNE, FLORIDA
STATEMENT OF ACTIVITIES
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
Net (Expense) Revenue and
Program Revenues Changes in Net Position
The accompanying notes are an integral part of these financial statements.
15
Transportation PROS Land Total
Special Trust Special Capital Governmental
General Revenue Revenue Improvements Funds
Assets
Cash 13,224,162$ --$ 3,554,558$ 2,423,579$ 19,202,299$
Investments 3,188,504 -- -- -- 3,188,504
Receivables, net 2,037,131 141,742 -- 830,985 3,009,858
Due from other funds 414,327 62,252 2,095 38,893 517,567
Prepaid items 588,364 53,355 -- -- 641,719
Restricted cash 266,058 1,633,056 -- 987 1,900,101
Restricted investments 214,093 ------ 214,093
Total Assets 19,932,639$ 1,890,405$ 3,556,653$ 3,294,444$ 28,674,141$
Liabilities
Accounts payable and accrued liabilities 2,021,565$ 34,680$ 799$ 77,859$ 2,134,903$
Due to other funds 103,885 159,913 -- 32,718 296,516
Due to pension fund 565,271 -- -- -- 565,271
Unearned revenue 442,013 ------ 442,013
Total Liabilities 3,132,734 194,593 799 110,577 3,438,703
Fund Balances (Note 9)
Non-spendable 588,364 53,355 -- -- 641,719
Restricted 214,093 764,463 2,551,171 -- 3,529,727
Committed 3,378,792 -- 1,004,683 3,183,867 7,567,342
Assigned 12,618,656 877,994 ---- 13,496,650
Total Fund Balances 16,799,905 1,695,812 3,555,854 3,183,867 25,235,438
Total Liabilities and Fund Balances 19,932,639$ 1,890,405$ 3,556,653$ 3,294,444$
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 92,058,414
Prepaid debt service in general fund not considered a prepaid asset for governmental activities (338,333)
Deferred outflows of resources related to pensions are recorded in the statement of net position 3,286,372
Deferred inflows of resources related to pensions are recorded in the statement of net position (635,430)
Deferred inflows of resources related to other post-employment benefits (OPEB) (348,515)
Long-term liabilities, including bonds and notes payable and accrued interest payable are not
due and payable in the current period and therefore not reported in the funds (Note 2) (18,353,354)
The total other post-employment benefits liability not due and payable in the current period
and therefore not reported in the funds (435,108)
The net pension liability is not due and payable in the current period and
therefore is not reported in the governmental funds (4,954,221)
Net Position of Governmental Activities 95,515,263$
VILLAGE OF KEY BISCAYNE, FLORIDA
BALANCE SHEET
GOVERNMENTAL FUNDS
SEPTEMBER 30, 2020
The accompanying notes are an integral part of these financial statements.
16
Transportation PROS Land Total
Special Trust Special Capital Governmental
General Revenue Revenue Improvements Funds
Revenues
Property taxes 25,276,850$ --$ 255,322$ --$ 25,532,172$
Utility taxes 2,224,417 -- ---- 2,224,417
Communications services tax 651,615 -- ---- 651,615
Franchise fees 837,835 -- ---- 837,835
Licenses and permits 1,251,238 -- ---- 1,251,238
Intergovernmental 1,846,525 1,033,539 ---- 2,880,064
Charges for services 3,095,796 -- ---- 3,095,796
Interest 193,369 17 557 -- 193,943
Grants 323,185 -- -- 1,054,835 1,378,020
Contributions 1,150 -- ---- 1,150
Miscellaneous revenue and other 120,614 ---- 23,034 143,648
Total Revenues 35,822,594 1,033,556 255,879 1,077,869 38,189,898
Expenditures
Current:
General government 3,810,666 377,561 ---- 4,188,227
Fire 8,773,421 -- ---- 8,773,421
Police 8,371,181 -- ---- 8,371,181
Public works 2,185,127 -- ---- 2,185,127
Building, zoning and planning 2,336,759 -- ---- 2,336,759
Parks and recreation 3,940,619 -- 49,776 -- 3,990,395
Capital outlay 351,237 -- 4,115,411 794,414 5,261,062
Debt service:
Principal 3,728,705 535,343 ---- 4,264,048
Interest and fiscal charges 423,507 61,296 ---- 484,803
Total Expenditures 33,921,222 974,200 4,165,187 794,414 39,855,023
Excess (Deficiency) of Revenues
over Expenditures 1,901,372 59,356 (3,909,308) 283,455 (1,665,125)
Other Financing Sources (Uses)
Transfers in -- -- -- 608,971 608,971
Transfers out (208,971) (400,000) ---- (608,971)
Total Other Financing Sources (Uses)(208,971) (400,000) -- 608,971 --
Change in Fund Balances 1,692,401 (340,644) (3,909,308) 892,426 (1,665,125)
Fund Balances - Beginning 15,107,504 2,036,456 7,465,162 2,291,441 26,900,563
Fund Balances - Ending 16,799,905$ 1,695,812$ 3,555,854$ 3,183,867$ 25,235,438$
VILLAGE OF KEY BISCAYNE, FLORIDA
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
The accompanying notes are an integral part of these financial statements.
17
Amounts reported for governmental activities in the statement of activities
are different because:
Change in fund balances - total governmental funds (1,665,125)$
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 5,130,447$
Depreciation expense (4,074,562) 1,055,885
The issuance of long-term debt provides current financial resources
to governmental funds, while the repayment of the principal of
long-term debt consumes the current financial resources of
governmental funds.
The detail of the differences are as follows:
Debt payments and related items 3,795,463
Capital lease payments 468,585 4,264,048
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 (859,689)
Accrued interest 27,871
Total OPEB liability 245,062
Net pension liability (1,943,084)
Other 18 (2,529,822)
Changes in the Village's pension deferred outflows and pension
deferred inflows for the current year are not reported in the
governmental funds but are reported in the statement of activities 2,366,570
Changes in the Village's OPEB deferred outflows and OPEB deferred
inflows for the current year are not reported in the governmental
funds but are reported in the statement of activities (306,353)
Change in net position of governmental activities 3,185,203$
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, 2020
The accompanying notes are an integral part of these financial statements.
18
Stormwater
Utility Solid
System Waste Totals
Assets
Current Assets
Cash 834,960$ 13,477$ 848,437$
Accounts receivables, net 450,135 726,423 1,176,558
Due from other funds -- 645 645
Total Current Assets 1,285,095 740,545 2,025,640
Noncurrent Assets
Capital assets being depreciated, net 6,611,990 -- 6,611,990
Construction in progress 172,455 -- 172,455
Total Noncurrent Assets 6,784,445 -- 6,784,445
Total Assets 8,069,540 740,545 8,810,085
Liabilities
Current Liabilities
Accounts payable and accrued liabilities 273,962 500 274,462
Due to other funds 15,128 206,568 221,696
Total Current Liabilities 289,090 207,068 496,158
Noncurrent Liabilities
Revenue bonds payable 4,207,301 -- 4,207,301
Total Noncurrent Liabilities 4,207,301 -- 4,207,301
Total Liabilities 4,496,391 207,068 4,703,459
Net Position
Net investment in capital assets 2,577,144 -- 2,577,144
Unrestricted 996,005 533,477 1,529,482
Total Net Position 3,573,149$ 533,477$ 4,106,626$
Business-type Activities -
Enterprise Funds
VILLAGE OF KEY BISCAYNE, FLORIDA
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
SEPTEMBER 30, 2020
The accompanying notes are an integral part of these financial statements.
19
Stormwater
Utility Solid
System Waste Totals
Operating Revenues
Charges for services 1,563,529$ 1,061,921$ 2,625,450$
Operating Expenses
General and administrative 607,900 756,508 1,364,408
Depreciation 392,147 -- 392,147
Total Operating Expenses 1,000,047 756,508 1,756,555
Operating Income 563,482 305,413 868,895
Non-Operating Revenues (Expenses)
Interest income 9,540 -- 9,540
Interest expense (108,145) -- (108,145)
Total Non-Operating Expenses (98,605) -- (98,605)
Change in Net Position 464,877 305,413 770,290
Net Position- Beginning 3,108,272 228,064 3,336,336
Net Position - Ending 3,573,149$ 533,477$ 4,106,626$
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, 2020
The accompanying notes are an integral part of these financial statements.
20
Stormwater
Utility
System Solid Waste Totals
Cash Flows from Operating Activities
Receipts from customers and users 1,353,601$ 764,811$ 2,118,412$
Payments for interfund services (2,219,878) -- (2,219,878)
Payments to suppliers (384,284) (819,933) (1,204,217)
Net Cash Used by Operating Activities (1,250,561) (55,122) (1,305,683)
Cash Flows from Capital and Related
Financing Activities
Payments for construction of capital assets (172,455) -- (172,455)
Interest and fees paid on long term debt (108,145) -- (108,145)
Net Cash Used by Capital and Related
Financing Activities (652,082) -- (652,082)
Cash Flows from Investing Activities
Investments proceeds 2,084,153 -- 2,084,153
Interest received 9,540 -- 9,540
Net Cash Provided by Investing Activities 2,093,693 -- 2,093,693
Net Increase (Decrease) in Cash 191,050 (55,122) 135,928
Cash - Beginning 643,910 68,599 712,509
Cash - Ending 834,960$ 13,477$ 848,437$
Reconciliation of Operating Income to Net Cash
Used by Operating Activities
Operating income 563,482$ 305,413$ 868,895$
Adjustments to reconcile operating income to net
cash used by operating activities:
Depreciation 392,147 -- 392,147
Changes in operating assets and liabilities:
(Increase) decrease in:
Accounts receivable, net (213,197) (261,276) (474,473)
Due from other funds 3,269 (580) 2,689
Increase (decrease) in:
Accounts payable and accrued liabilities 223,616 (63,425) 160,191
Due to other funds (2,219,878) (35,254) (2,255,132)
Total adjustments (1,814,043) (360,535) (2,174,578)
Net Cash Used by Operating Activities (1,250,561)$ (55,122)$ (1,305,683)$
Business-type Activities -
Enterprise Funds
VILLAGE OF KEY BISCAYNE, FLORIDA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
The accompanying notes are an integral part of these financial statements.
21
Assets
Cash 122,880$
Investments
Money market funds 4,653,290
Mutual funds 36,364,285
Real Estate Open-End Fund 1,995,827
Mutual funds held in the Share Plan 1,134,998
Mutual funds held in the DROP 3,163,297
Guaranteed interest fund held in the DROP 527,139
Guaranteed interest fund held in the Share Plan 32,175
Total Investments 47,871,011
Receivables
State supplemental appropriation 559,089
Total Assets 48,552,980
Liabilities
Accounts payable and accrued liabilities 31,176
Net Position Restricted for Pension Benefits 48,521,804$
VILLAGE OF KEY BISCAYNE, FLORIDA
STATEMENT OF FIDUCIARY NET POSITION
PENSION TRUST FUND
SEPTEMBER 30, 2020
The accompanying notes are an integral part of these financial statements.
22
Additions
Contributions
Plan members 677,201$
Village (including State) 2,348,157
Total Contributions 3,025,358
Investment Income
Net appreciation in the fair value of investments 3,215,460
Net appreciation in the fair value of investments (Share and DROP) 331,651
Interest and dividends 772,541
4,319,652
Less: investment expenses (49,244)
Net Investment Income 4,270,408
Total Additions 7,295,766
Deductions
Benefits paid 1,251,760
Refund of participant contributions 13,943
Share Plan distributions 91,280
Administrative expenses 108,024
Total Deductions 1,465,007
Change in Net Position 5,830,759
Net Position Restricted for Pension Benefits
Beginning of year 42,691,045
End of year 48,521,804$
VILLAGE OF KEY BISCAYNE, FLORIDA
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
PENSION TRUST FUND
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
The accompanying notes are an integral part of these financial statements.
23
NOTES TO BASIC FINANCIAL STATEMENTS
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
24
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, 2020
25
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, 2020
26
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 restricted revenues received
from the transportation surtax and expenditures restricted for related transportation
costs.
The Parks and Recreational Open Space (PROS) Land Trust Special Revenue Fund
accounts for the restricted resources received for the acquisition of parks and
recreational lands.
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 Solid Waste Fund accounts for the provision of solid waste disposal services to
Village residents and businesses.
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
27
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
C. MEASUREMENT FOCUS, BASIS OF ACCOUNTING, AND FINANCIAL STATEMENT
PRESENTATION (CONTINUED)
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.
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
Effective October 1, 2019, the Village implemented the following GASB Pronouncement:
GASB Statement No. 88, Certain Debt Disclosures including Direct Borrowings and
Direct Placement improves the information that is disclosed in notes to government
financial statements related to debt, including direct borrowings and direct placements. This
Statement requires that additional essential information related to debt be disclosed in the
notes to the financial statements, including unused lines of credit; assets pledged as
collateral for the debt; and terms specified in debt agreements related to significant events
of default with finance-related consequences, significant termination events with finance-
related consequences, and significant subjective acceleration clauses. Refer to Note 8 for
relevant disclosures.
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
28
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
E. ASSETS, LIABILITIES, DEFERRED OUTFLOWS/INFLOWS OF RESOURCES AND FUND
BALANCE/NET POSITION
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. Fair value is defined as the price that would be received to sell an
asset or paid to transfer a liability in an orderly transaction between market participants.
Money market funds are reported at amortized cost.
The Village’s and pension plan’s investments are governed by their respective investment
policies.
2. Interfund Receivables and Payables
Activities between funds that are representative of lending/borrowing arrangements
outstanding at the end of the fiscal year are referred to as “due to/from other funds”. Any
residual balances outstanding between the governmental activities and business-type
activities are reported in the government-wide financial statements as “internal balances”.
3. Receivables
Receivables include amounts due from other governments and others for services
provided by the Village. Receivables are recorded and revenues are recognized as earned
or as specific program expenditures/expenses are incurred. Allowances, if any, for
uncollectible receivables are based upon historical trends and the periodic aging of
receivables.
4. Prepaids
Prepaids represent goods and services which are paid for in one period, but benefit a
future period. Prepaids are recorded as an expenditure/expense in the fund level and
government-wide financial statements in the period benefited. Prepaids for governmental
fund types are reported as an asset of the fund with a corresponding amount recorded as
non-spendable fund balance.
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
29
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
E. ASSETS, LIABILITIES, DEFERRED OUTFLOWS/INFLOWS OF RESOURCES AND FUND
BALANCE/NET POSITION (CONTINUED)
5. 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.
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/amortized 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
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
30
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
E. ASSETS, LIABILITIES, DEFERRED OUTFLOWS/INFLOWS OF RESOURCES AND FUND
BALANCE/NET POSITION (CONTINUED)
6. 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 at fiscal
year end. 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 collected in advance are classified as an unearned revenue in the
government-wide and fund level financial statements.
7. 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 fiscal year end and were subsequently paid with current available
financial resources. The general fund typically is used to liquidate the liability for
compensated absences.
8. Long-Term Obligations
In the government-wide financial statements, and proprietary fund types in the fund
financial statements, long-term debt and other long-term obligations are reported as
liabilities in the applicable governmental activities, business-type activities, or proprietary
fund type statement of net position. Bond premiums and discounts are deferred and
amortized over the life of the bonds using the straight-line amortization method. The
results of using this method do not differ significantly from the effective interest method.
Bonds payable are reported net of the applicable bond premium or discount. Bond issue
costs are expensed as incurred.
In the fund financial statements, governmental fund types recognize bond premiums and
discounts, as well as bond issuance costs, during the current period. The face amount of
debt issued is reported as other financing sources. Premiums received on debt issuances
are reported as other financing sources while discounts on debt issuances are reported as
other financing uses. Issuance costs, whether or not withheld from the actual debt
proceeds received, are reported as debt service expenditures as incurred.
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
31
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
E. ASSETS, LIABILITIES, DEFERRED OUTFLOWS/INFLOWS OF RESOURCES AND FUND
BALANCE/NET POSITION (CONTINUED)
9. Deferred Outflows/Inflows of Resources
In addition to assets, the statement of net position will sometimes report a separate section
for deferred outflows of resources. This separate financial statement element, deferred
outflows of resources, represents a consumption of net position that applies to a future
period(s) and so will not be recognized as an outflow of resources (expense/expenditure)
until then. The Village reports within its government-wide statement of net position,
deferred outflows related to the Village of Key Biscayne Police Officers and Firefighters
Retirement Plan as a result of the net pension liability associated with the Plan measured as
of September 30, 2019.
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 the Village of Key
Biscayne Police Officers and Firefighters Retirement Plan and the Village’s Other Post
Employment Benefits (OPEB). 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.
10. Fund Balance
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.
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
32
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
E. ASSETS, LIABILITIES, DEFERRED OUTFLOWS/INFLOWS OF RESOURCES AND FUND
BALANCE/NET POSITION (CONTINUED)
10. Fund Balance(continued)
Restricted fund balance. Restricted fund balances are amounts that can be spent only
for specific purposes stipulated by (a) external resource providers such as creditors (by
debt covenants), grantors, contributors, or laws or regulations of other governments; or
(b) imposed by law through constitutional provisions or enabling legislation.
Committed fund balance. These amounts can only be used for the specific purposes
determined by a formal action (Ordinance or Resolution, which are both equally
binding) of the Village Council, the Village’s highest level of decision making
authority. Commitments may be changed or removed only by the Village Council
taking the same formal action (Ordinance/Resolution) that imposed the constraint
originally. Resources accumulated pursuant to stabilization arrangements sometimes
are reported in this category.
Assigned fund balance. Assigned fund balances are amounts that are constrained by the
Village’s intent to be used for specific purposes, but are neither restricted nor
committed. Intent is established by the Village Manager to which the Council has
delegated the authority to assign, modify or rescind amounts to be used for specific
purposes. There is no formal policy which has been established by Council delegating
this authority. This balance includes (a) all remaining amounts that are reported in
governmental funds (other than the General Fund) that are not classified as
nonspendable, restricted, or committed, and (b) amounts in the General Fund that are
intended to be used for a specific purpose. Specific amounts that are not restricted or
committed in a special revenue fund are assigned for the purposes in accordance with
the nature of their fund type. Assignment within the General Fund conveys that the
intended use of those amounts is for a specific purpose that is narrower than the general
purposes of the Village itself.
Unassigned fund balance. The Village, based on its charter, is not permitted to have
unassigned/unreserved fund balance in the general fund. See Note 9 for the detail of the
amounts included in the various fund balance classifications.
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
33
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
E. ASSETS, LIABILITIES, DEFERRED OUTFLOWS/INFLOWS OF RESOURCES AND FUND
BALANCE/NET POSITION (CONTINUED)
11. 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
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.
12. 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.
13. Flow Assumptions
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, 2020
34
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
E. ASSETS, LIABILITIES, DEFERRED OUTFLOWS/INFLOWS OF RESOURCES AND FUND
BALANCE/NET POSITION (CONTINUED)
13. Flow Assumptions (continued)
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.
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, are not due
and payable in the current period and therefore are not reported in the funds. The detail of
this $18,353,354 difference, excluding the net pension liability and total OPEB liability
which are separately disclosed, is as follows:
Bonds payable 13,980,120$
Capital leases payable 475,657
Compensated absences 3,834,956
Accrued interest payable 62,621
18,353,354$
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
35
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 0.01% to 0.35% and with maturities ranging from 12 months to 24 months totaling
$3,402,597 which are presented as investments in the accompanying financial statements.
INVESTMENTS - VILLAGE
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.
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, 2020
36
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.
INVESTMENTS – PENSION PLAN
For the Village of Key Biscayne Police Officers and Firefighters Retirement 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 45.0% 35% - 55%
Mid-cap 10.0% 5% - 15%
Small-cap 5.0%0% - 10%
International equity 15.0% 5% - 25%
Private real estate 5.0% 2% - 8%
Fixed income bonds 10.0% 7% - 15%
Cash and cash equivalents 10.0%7% - 15%
Total 100.0%
As of September 30, 2020, 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 3,641,262$ --$ 2,041,840$ 1,599,422$ --$
Investment Maturities (In Years)
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
37
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, 2020, 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, 2020
38
NOTE 3 – DEPOSITS AND INVESTMENTS (CONTINUED)
INVESTMENTS – PENSION PLAN (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 funds.
The Plan invests in 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 (NAV) 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, market appraisals, and similar techniques.
At present the Plan does not value any of its investments using Level 2 or Level 3 inputs.
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
39
NOTE 3 – DEPOSITS AND INVESTMENTS (CONTINUED)
INVESTMENTS – PENSION PLAN (CONTINUED)
FAIR VALUE HIERARCHY (CONTINUED)
The following is a summary of the fair value hierarchy of the Plan investments as of
September 30, 2020:
Quoted Prices
in Active Significant
Markets for Other Significant
Identical Observable Unobservable
Assets Inputs Inputs
9/30/2020 (Level 1) (Level 2) (Level 3)
Investments by Fair Value Level
International mutual fund 5,958,952$ 5,958,952$ --$ --$
Fixed income mutual funds 3,641,262 3,641,262 -- --
Mutual fund equities 26,764,071 26,764,071 -- --
Mutual funds (DROP)3,163,297 3,163,297 -- --
Mutual funds (Share)1,134,998 1,134,998 -- --
Total Investments at Fair Value 40,662,580 40,662,580$ --$ --$
Investment Measured at Net Asset Value (NAV)
Real estate open-end fund 1,995,827
Total investments measured at NAV 1,995,827
Money market funds (exempt)4,653,290
Guaranteed interest fund (exempt)559,314
Total Investments 47,871,011$
Fair Value Measurements Using
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
Real estate open-end fund (1)1,995,827$ --$ Quarterly 1 day
(1)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, 2020
40
NOTE 3 – DEPOSITS AND INVESTMENTS (CONTINUED)
INVESTMENTS – PENSION PLAN (CONTINUED)
GUARANTEED INTEREST FUND
The Village’s Deferred Retirement Option Program (See Note 11) and the Village of Key
Biscayne Firefighters’ Share Plan elected to offer a Guaranteed Interest Fund (GIF) to each
respective Plan’s participants managed by Great-West Life & Annuity Insurance Company
(Great-West). The contract value of each respective Plan’s assets in the GIF in respect of
the participant accounts is determined as the value of the sum of contributions and deposits
by and on behalf of participants allocated to the GIF plus interest credited to the Plan’s
assets less the sum of any amounts distributed and transferred from the GIF, as well as
charges and fees and applicable taxes, if any. The value of the GIF in the Deferred
Retirement Option Program and the Village of Key Biscayne Firefighters’ Share Plan as of
September 30, 2020 was $527,139 and $32,175, respectively.
The GIF is a general account product. The methodology for calculating the interest
crediting rate is based on the earnings of the underlying assets in the entire medium-long
term new portfolio compared to the minimum interest crediting rate, as stated in the
contract, and prevailing market conditions. Interest crediting rate is reset quarterly. The
average yield earned by the plan for the benefit responsive fund can be derived by
averaging the quarterly gross interest rates for the fund over the year. The average for 2020
was 1.25%. The actual average yield earned by the plan for this benefit responsive fund for
2020 was 1.25%.
Certain events limit the fund’s ability to transact at contract value, including premature
termination of the contracts by the plan, plant closings, layoffs, plan termination,
bankruptcy, mergers, and early retirement incentives. No such events existed during the
year. The contracts allows each respective Plan to terminate the contract if the Plan Sponsor
notifies Great-West in writing of its contract termination option at least 60 calendar days
before the contract termination date.
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
41
NOTE 4 – RECEIVABLES
Receivables as of September 30, 2020 for the Village’s individual major funds, non-major
funds and fiduciary fund in the aggregate, including the allowances for uncollectible
accounts, are as follows:
Transportation
Special Capital Storm- Solid Pension
General Revenue Improvements water Waste Trust Fund Total
Customers billed --$ --$ --$ --$ 779,186$ --$ 779,186$
Contributions -- -- -- -- -- 559,089 559,089
Intergovernmental 2,037,131 141,742 830,985 450,135 -- -- 3,459,993
Gross receivables 2,037,131 141,742 830,985 450,135 779,186 559,089 4,798,268
Less: Allowance for
uncollectibles -- -- -- -- (52,763) -- (52,763)
Net Total Receivables 2,037,131$ 141,742$ 830,985$ 450,135$ 726,423$ 559,089$ 4,745,505$
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, 2020 was 3.195.
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, 2020, there were no material delinquent taxes.
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
42
NOTE 6 – INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS
The composition of interfund balances as of September 30, 2020 is as follows:
Receivable Fund
Capital Solid
General Transportation Improvements Stormwater Waste Total
General --$ 159,913$ 32,718$ 15,128$ 206,568$ 414,327$
Transportation 62,252 -- -- -- -- 62,252
PROS Land Trust 2,095 -- -- -- -- 2,095
Capital Improvements 38,893 -- -- -- -- 38,893
Solid Waste 645 -- -- -- -- 645
Total 103,885$ 159,913$ 32,718$ 15,128$ 206,568$ 518,212$
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 208,971$
Transportation Fund Capital Improvements 400,000
608,971$
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, 2020
43
NOTE 7 – CAPITAL ASSETS
Capital asset activity for the fiscal year ended September 30, 2020 was as follows:
Beginning Increases and Decreases and Ending
Balance Transfers Transfers Balance
Governmental Activities
Capital Assets, Not Being Depreciated
Land 23,941,979$ 4,115,411$ --$ 28,057,390$
Construction in progress 11,067,606 769,413 -- 11,837,019
Total Capital Assets, Not Being Depreciated 35,009,585 4,884,824 -- 39,894,409
Capital Assets, Being Depreciated
Buildings 26,064,612 -- -- 26,064,612
Improvements other than buildings 39,296,288 10,861 -- 39,307,149
Furniture, fixtures and equipment 13,812,944 234,762 -- 14,047,706
Sanitary Sewer system 18,808,259 -- -- 18,808,259
Total Capital Assets, Being Depreciated 97,982,103 245,623 -- 98,227,726
Less: Accumulated Depreciation for
Buildings (8,508,476) (530,925) -- (9,039,401)
Improvements other than buildings (14,975,011) (1,765,862) -- (16,740,873)
Furniture, fixtures and equipment (10,586,405) (787,867) -- (11,374,272)
Sanitary Sewer system (7,919,267) (989,908) -- (8,909,175)
Total Accumulated Depreciation (41,989,159) (4,074,562) -- (46,063,721)
Total Capital Assets, Being Depreciated, Net 55,992,944 (3,828,939) -- 52,164,005
Governmental Activities Capital Assets, Net 91,002,529$ 1,055,885$ --$ 92,058,414$
Business-type Activities
Capital Assets, Not Being Depreciated
Construction in progress 1,040,522$ 172,455$ (1,040,522)$ 172,455$
Total Capital Assets, Not Being Depreciated 1,040,522 172,455 (1,040,522) 172,455
Capital Assets, Being Depreciated
Stormwater utility system 12,473,447 1,040,522 -- 13,513,969
Total Capital Assets, Being Depreciated 12,473,447 1,040,522 -- 13,513,969
Less: Accumulated Depreciation for
Stormwater utility system (6,509,832) (392,147) -- (6,901,979)
Total Accumulated Depreciation (6,509,832) (392,147) -- (6,901,979)
Total Capital Assets, Being Depreciated, Net 5,963,615 648,375 -- 6,611,990
Business-type Activities Capital Assets, Net 7,004,137$ 820,830$ (1,040,522)$ 6,784,445$
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
44
NOTE 7 – CAPITAL ASSETS (CONTINUED)
Depreciation expense was charged as functions/programs of the primary government as
follows:
Governmental Activities
General government 1,187,714$
Police 459,641
Fire 275,675
Public works 1,264,745
Building, zoning and planning 9,855
Parks and recreation 876,932
Total Depreciation Expense - Governmental Activities 4,074,562$
Business-type Activities
Stormwater 392,147$
Total Depreciation Expense - Business-Type Activities 392,147$
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
45
NOTE 8 – LONG-TERM DEBT
The following is a summary of changes in long-term liabilities of the Village for
governmental activities for the fiscal year ended September 30, 2020:
Beginning Ending Due Within
Balance Additions Reductions Balance One Year
Governmental Activities
Bonds and Loans Payable
Land acquisition and capital improvement
revenue bonds, Series 1999 815,000$ --$ (815,000)$ --$ --$
Capital improvement revenue refunding
bonds, Series 2011A 1,520,000 -- (750,000) 770,000 770,000
Capital improvement revenue refunding
bonds, Series 2011B 2,274,118 -- (680,882) 1,593,236 665,882
Capital improvement and land acquisition
revenue refunding bonds, Series 2011 600,000 -- (175,000) 425,000 200,000
Transportation tax revenue refunding
bonds, Series 2011 1,340,957 -- (263,587) 1,077,370 162,011
Road improvement revenue bonds,
Series 2006 771,817 -- (325,110) 446,707 345,812
School improvement revenue bonds,
Series 2012 4,456,692 -- (298,450) 4,158,242 301,712
School improvement revenue bonds,
Series 2014 3,250,000 -- (285,000) 2,965,000 --
Sewer improvement revenue
bonds, Series 2016 2,711,740 -- (234,887) 2,476,853 239,537
Revolving loan, 1996** 93,615 -- (25,903) 67,712 26,570
Total Bonds and Loans Payable 17,833,939 -- (3,853,819) 13,980,120 2,711,524
Other Liabilities
Capital leases** 944,242 -- (468,585) 475,657 475,657
Compensated absences 2,975,267 1,805,282 (945,593) 3,834,956 958,741
Total Other Liabilities 3,919,509 1,805,282 (1,414,178) 4,310,613 1,434,398
Governmental Activities Long-
Term Liabilities 21,753,448$ 1,805,282$ (5,267,997)$ 18,290,733$ 4,145,922$
**Direct Borrowings
Long-term obligations related to governmental activities, including pension and OPEB, are
generally liquidated from the general fund.
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
46
NOTE 8 – LONG-TERM DEBT (CONTINUED)
LAND ACQUISITION AND CAPITAL IMPROVEMENT REVENUE BONDS, SERIES 1999
On July 23, 1999, the Village issued $10,000,000 Land Acquisition and Capital Improvement
Revenue Bonds, Series 1999, the proceeds of which were used for the acquisition of property
and financing of the construction of the Civic Center project. The bonds matured on
December 1, 2019.
CAPITAL IMPROVEMENT REVENUE REFUNDING BONDS, SERIES 2011A
On June 13, 2011, the Village issued $6,890,000 of Capital Improvement Revenue Refunding
Bonds, Series 2011A for the purpose of refunding the Village’s Capital Improvement
Revenue Bonds, Series 2000. The bonds mature on December 1, 2020. The Village has
pledged non-ad valorem revenues to secure payment of the principal and interest on the
bonds. The bonds are due in annual principal installments on each December 1, commencing
December 1, 2011. Interest accrues at 2.31% per annum.
Effective January 1, 2018, the Tax Cuts and Jobs Act amended the interest rate of this bond,
increasing the interest rate by a factor of 1.215 to 2.81% per annum.
Debt service requirements to maturity are as follows:
Principal Interest Total
Fiscal Year Ending September 30
2021 770,000$ 8,894$ 778,894$
CAPITAL IMPROVEMENTS REVENUE REFUNDING BONDS, SERIES 2011B
On August 1, 2011, the Village issued $7,130,000 of Capital Improvement Revenue
Refunding Bonds, Series 2011B for the purpose of refunding the Village’s Capital
Improvement Revenue Bonds, Series 2002. The bonds mature on November 1, 2022. The
Village has pledged non-ad valorem revenues to secure payment of the principal and
interest on the bonds. The bonds bear interest on the outstanding principal balance from its
date of issuance payable quarterly on the first day of each February, May, August and
November commencing November 1, 2011, at an interest rate equal to 2.41% per annum.
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
47
NOTE 8 – LONG-TERM DEBT (CONTINUED)
CAPITAL IMPROVEMENTS REVENUE REFUNDING BONDS, SERIES 2011B (CONTINUED)
Effective January 1, 2018, the Tax Cuts and Jobs Act amended the interest rate of this bond,
increasing the interest rate by a factor of 1.215 to 2.81% per annum.
Debt service to maturity is as follows:
Principal Interest Total
Fiscal Year Ending September 30
2021 665,882$ 40,365$ 706,247$
2022 665,882 20,590 686,472
2023 261,472 112,070 373,542
1,593,236$ 173,025$ 1,766,261$
CAPITAL IMPROVEMENT AND LAND ACQUISITION REVENUE REFUNDING BONDS, SERIES
2011
On August 1, 2011, the Village issued the $1,865,000 Capital Improvement and Land
Acquisition Revenue Refunding Bonds, Series 2011 for the purpose of refunding the
Capital Improvement and Land Acquisition Revenue Bonds, Series 2004. The Village has
pledged non-ad valorem revenues to secure payment of the principal and interest on the
bonds. The bonds mature on August 1, 2022. The bonds bear interest on the outstanding
principal balance from its date of issuance payable quarterly on the first day of each
February, May, August and November, commencing November 1, 2011, at an interest rate
equal to 2.41% per annum.
Effective January 1, 2018, the Tax Cuts and Jobs Act amended the interest rate of this bond,
increasing the interest rate by a factor of 1.215 to 2.92% per annum. As a result of this
amended rate and the Village’s historical principal payments on the bond, the bond’s final
debt service payment is expected to be August 1, 2022.
Debt service requirements to maturity are as follows:
Principal Interest Total
Fiscal Year Ending September 30
2021 200,000$ 9,658$ 209,658$
2022 225,000 3,718 228,718
425,000$ 13,376$ 438,376$
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
48
NOTE 8 – LONG-TERM DEBT (CONTINUED)
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 $540,592 and $213,463, respectively, to
secure payment of the principal and interest on the bonds. The bonds mature on July 1,
2025. The bonds bear interest on the outstanding principal balance from its date of
issuance payable quarterly on each January 1, April 1, July 1 and October 1 commencing
January 1, 2012, at an interest rate equal to 2.42% per annum.
Debt service requirements to maturity are as follows:
Principal Interest Total
Fiscal Year Ending September 30
2021* 162,011$ 18,578$ 180,589$
2022 220,625 20,160 240,785
2023 226,013 14,772 240,785
2024 231,533 9,252 240,785
2025 237,188 3,598 240,786
1,077,370$ 66,360$ 1,143,730$
* Debt service payment due on October 1, 2020 of approximately $53,000 in principal
was paid prior to fiscal year ended September 30, 2020.
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 $1,165,328. For the
current year, debt service and pledged revenues were $357,125 and $365,000, respectively.
The bonds are due in quarterly principal installments. Interest accrues at 4.05% per annum.
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
49
NOTE 8 – LONG-TERM DEBT (CONTINUED)
ROAD IMPROVEMENT REVENUE BONDS, SERIES 2006 (CONTINUED)
On January 22, 2018, the Tax Cuts and Jobs Act amended the interest rate of this bond,
increasing the interest rate by a factor of 1.215 to 4.92% per annum. As a result of this
amended rate and the Village’s historical principal payments on the bond, the bond’s final
debt service payment is expected to be March 1, 2022.
Debt service requirements to maturity are as follows:
Principal Interest Total
Fiscal Year Ending September 30
2021 345,812$ 15,399$ 361,211$
2022 100,895 1,283 102,178
446,707$ 16,682$ 463,389$
SCHOOL IMPROVEMENT REVENUE BONDS, SERIES 2012
On October 24, 2012, the Village issued $5,575,000 of School Improvement Revenue
Bonds, Series 2012 for the purpose of providing a portion of the financing of a permanent
secondary educational facility and recreational fields owned and operated by the School
Board of Miami-Dade County for Village residents located at the Mast Academy campus
as well as necessary renovations of the Key Biscayne K-8 Center, financing architectural,
engineering, environmental, legal, and other planning costs related thereto, and paying cost
of issuance of the bonds. The bonds mature on October 1, 2032. The bonds bear interest
on the outstanding principal balance from its date of issuance payable semiannually on
each April 1 and October 1 (the “interest payment dates”) commencing April 1, 2013, at an
interest rate equal to 3.35% per annum. The bonds require the Village to appropriate in its
annual budget, from non-ad valorem revenues amounts sufficient to cover debt service.
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
50
NOTE 8 – LONG-TERM DEBT (CONTINUED)
SCHOOL IMPROVEMENT REVENUE BONDS, SERIES 2012 (CONTINUED)
Debt service requirements to maturity are as follows:
Principal Interest Total
Fiscal Year Ending September 30
2021 301,712$ 112,686$ 414,398$
2022 304,982 104,336 409,318
2023 308,258 95,896 404,154
2024 311,539 87,365 398,904
2025 314,825 78,744 393,569
2026-2030 1,623,462 261,226 1,884,688
2031-2033 993,464 45,570 1,039,034
4,158,242$ 785,823$ 4,944,065$
SCHOOL IMPROVEMENT REVENUE BONDS, SERIES 2014
On July 1, 2014, the Village issued $4,575,000 of School Improvement Revenue Bonds,
Series 2014 for the purpose of providing an additional portion of the financing of a
permanent secondary educational facility and recreational fields owned and operated by the
School Board of Miami-Dade County for Village residents located at the Mast Academy
campus as well as necessary renovations of the Key Biscayne K-8 Center, financing
architectural, engineering, environmental, legal, and other planning costs related thereto,
and paying cost of issuance of the bonds. The bonds mature on October 1, 2029. Principal
pf the bones are paid in annual installments on each October 1, commencing October 1,
2015. The bonds bear interest on the outstanding principal balance from its date of
issuance payable semi-annually on each April 1 and October 1 (the "interest payment
dates") commencing October 1, 2014, at an interest rate equal to 2.76% per annum. The
bonds require the Village to appropriate in its annual budget, from non-ad valorem
revenues amounts sufficient to cover debt service.
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
51
NOTE 8 – LONG-TERM DEBT (CONTINUED)
SCHOOL IMPROVEMENT REVENUE BONDS, SERIES 2014 (CONTINUED)
Debt service requirements to maturity are as follows:
Principal Interest Total
Fiscal Year Ending September 30
2021*--$ 44,850$ 44,850$
2022 295,000 81,834 376,834
2023 305,000 73,692 378,692
2024 310,000 65,274 375,274
2025 320,000 56,718 376,718
2026-2030 1,735,000 192,648 1,927,648
2,965,000$ 515,016$ 3,480,016$
* Debt service payment due on October 1, 2020 totaling $285,000 in principal was paid
prior to fiscal year ended September 30, 2020.
SEWER IMPROVEMENT REVENUE BONDS, SERIES 2016
On June 29, 2016, the Village issued $3,490,000 of Sewer Improvement Revenue Bonds,
Series 2016 for the purpose of refinancing the State Revolving Fund Loan, 2009. The
bonds require the Village to appropriate in its annual budget, from non-ad valorem revenue
amounts sufficient to cover debt service. The bonds mature on February 15, 2030. The
bonds bear interest on the outstanding principal balance from its date of issuance payable
semi-annually on each February 15 and August 15, at an interest rate equal to 1.97% per
annum.
Debt service requirements to maturity are as follows:
Principal Interest Total
Fiscal Year Ending September 30
2021 239,537$ 47,620$ 287,157$
2022 244,279 42,878 287,157
2023 249,115 38,042 287,157
2024 254,047 33,110 287,157
2025 259,076 28,081 287,157
2026-2030 1,230,799 61,409 1,292,208
2,476,853$ 251,140$ 2,727,993$
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
52
NOTE 8 – LONG-TERM DEBT (CONTINUED)
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 2020 was $28,134 and state revenue sharing was
$342,498. The loan is payable in semi-annual payments over 20 years beginning on April 15,
2003 at an interest rate of 2.56% per annum. The loan matures on October 15, 2022.
Debt service requirements to maturity are as follows:
Principal Interest Total
Fiscal Year Ending September 30
2021 26,570$ 1,565$ 28,135$
2022 27,254 880 28,134
2023 13,888 178 14,066
67,712$ 2,623$ 70,335$
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 2,302,023$
Accumulated depreciation (1,376,148)
Carrying Value 925,875$
Future minimum lease payments and the present value of net minimum lease payments as
of September 30, 2020 are as follows:
Fiscal Year Ending September 30
2021 489,919$
Total minimum lease payments 489,919
Less: amount representing interest 14,262
475,657$
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
53
NOTE 8 – LONG-TERM DEBT (CONTINUED)
CAPITAL LEASES (CONTINUED)
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, 2020:
Beginning Ending Due Within
Balance Additions Reductions Balance One Year
Business-type Activities
Bonds Payable
Stormwater utility refunding and
improvement revenue bonds, Series 2016 4,578,783$ --$ (371,482)$ 4,207,301$ --$
Long-Term Liabilities 4,578,783$ --$ (371,482)$ 4,207,301$ --$
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 $1,563,529 for the fiscal year ended September 30,
2020. The bonds bear interest on the outstanding balance from their date of issuance
payable semi-annually every October 1st and April 1st, commencing April 1, 2017, at an
interest rate equal to 2.35% per annum. The bond matures on October 1, 2030. Principal is
paid annually on each October 1, commencing on October 1, 2014.
Debt service requirements to maturity are as follows:
Principal Interest Total
Fiscal Year Ending September 30
2021* --$ 49,708$ 49,708$
2022 380,212 94,948 475,160
2023 389,147 85,908 475,055
2024 398,292 76,656 474,948
2025 407,651 67,186 474,837
2026-2030 2,186,537 185,908 2,372,445
2031 445,462 5,506 450,968
4,207,301$ 565,820$ 4,773,121$
* Debt service payment due on October 1, 2020 approximating $363,000 in principal was
paid prior to fiscal year ended September 30, 2020.
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
54
NOTE 8 – LONG-TERM DEBT (CONTINUED)
REVENUE BONDS– DEFAULT TERMS
In the event of default of payment of principal or interest with respect to the insured bonds
when all or a portion becomes due, any registered owner of the insured bonds may pursue
any available remedy by suit, at law or in equity, to enforce the payment of the principal of
and interest on the bonds then outstanding. Certain bond obligations also provide that
registered owners of the insured bonds may declare all payments of principal and accrued
interest to be immediately due and payable, whereupon the same shall become immediately
due and payable.
CAPITAL LEASES – DEFAULT TERMS
In the event of default, the lender may provide a written notice to declare all amounts then
due under the financing agreements, and all remaining payments due during the fiscal year
in effect when the default occurs to be immediately due and payable, or request the Village
promptly deliver the equipment to the lessor. Lessor may exercise any other remedy
available, at law or in equity, with respect to such event of default. The Village shall pay
reasonable attorneys' fees and expenses incurred by lessor in exercising any remedy
hereunder.
STATE REVOLVING LOAN – DEFAULT TERMS
In the event of default, the State of Florida Department of Environmental Protection (the
Department) may accelerate the Village’s repayment schedule or increase the interest rate
by as much as 3% per annum on the unpaid principal of the loan. The Department may
also notify the Village’s financial market credit rating agencies and terminate future
commitments to provide additional loans. The Department may pursue any available
remedy by suit for payment of amounts due, or becoming due, with interest on overdue
payments together with all costs of collection, including attorneys' fees.
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
55
NOTE 9 – FUND BALANCE CLASSIFICATIONS
As of September 30, 2020, 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.
General Fund
Nonspendable
Prepaid items 588,364$
Restricted
Law Enforcement Trust Fund (LETF) 22,341
Law enforcement seizures 191,752
214,093
Committed
Emergencies 3,378,792
Assigned
Compensated absences 958,741
Fire rescue transport fees 1,811,982
Working capital (surplus) 9,847,933
12,618,656
Total Fund Balance - General Fund 16,799,905$
Transportation Special Revenue
Nonspendable
Prepaid items 53,355$
Restricted
Transportation surtax 764,463
Assigned 877,994
Total Fund Balance - Transportation Special Revenue 1,695,812$
PROS Land Trust Special Revenue
Restricted
Open space land trust 2,551,171$
Committed
Open space land trust 1,004,683
Total Fund Balance - PROS Land Trust 3,555,854$
Capital Improvements
Committed
Capital improvements 3,183,867$
Total Fund Balance - Capital Improvements 3,183,867$
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
56
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 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 plans
were approximately $499,000 and $61,000 for the year ended September 30, 2020,
respectively. Amendments to the Plans must be authorized by the Village Council.
NOTE 11 – DEFINED BENEFIT PENSION PLAN
PLAN DESCRIPTION
Effective October 1, 1997, the Village established the Village of Key Biscayne Police
Officers and Firefighters Retirement Plan (a single-employer Public Employee Retirement
System - PERS) to provide pension benefits for its police officers and firefighters. The PERS
is considered to be part of the Village’s financial reporting entity and is included in the
Village’s financial reports as a pension trust fund. The Plan was created under Village
Ordinance 97-21. The PERS is administered by a five member Board of Trustees, comprised
of two members appointed by Village Council, one member elected by/from the police officer
members, one member elected by/from the firefighter members and the fifth member is
chosen by the majority of the four Trustees and formally appointed by the Village Council.
The latest available actuarial valuation is as of October 1, 2019. The PERS does not issue a
publicly available stand-alone financial report for the Plan. The Plan received a favorable IRS
determination letter dated September 12, 2014. Amendments to the Plan must be authorized
by the Village Council.
Under this Plan, all full-time firefighters and police officers employed by the Village are
eligible to participate. Prior to March 11, 2014 for firefighters and August 26, 2014 for police
officers, the monthly retirement benefit was equal to 3% of the average final compensation for
each year of service.
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
57
NOTE 11 – DEFINED BENEFIT PENSION PLAN (CONTINUED)
PLAN DESCRIPTION (CONTINUED)
As of March 11, 2014, the monthly retirement benefit for firefighters is equal to 3% of
average final compensation for the first fifteen years of credited service; 4% of average final
compensation for each year of credit service in excess of fifteen years; and 2.75% of average
final compensation earned after March 10, 2014, and before October 1, 2017. After October 1,
2017, the monthly retirement benefit is equal to 3% of average final compensation for the
remaining years of credited service.
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. After October 1, 2017, the monthly retirement benefit is equal to 3% of average
final compensation for each year of credited service. The calculation for the average final
compensation is computed as one-twelfth of the average salary of the five highest years
within the last ten years of credited service. Credited service is determined by the total
number of years employed by the Village since August 1, 1993.
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, 2019 (date of the latest actuarial valuation), Plan membership
consisted of the following:
Inactive plan members and beneficiaries currently receiving benefits 47
Inactive plan members entitled but not yet receiving benefits 2
Active plan members 60
Total Members 109
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
58
NOTE 11 – DEFINED BENEFIT PENSION PLAN (CONTINUED)
FUNDING POLICY
The participant contribution rate is fixed by Ordinance at 10.5%.
The Village’s contribution rate is adjusted each year to an amount equal to the total pension
cost for the year, as determined by the most recent actuarial valuation, less the amount of
revenue received from the State of Florida pursuant to Chapters 175 and 185 of the Florida
Statutes. Effective March 11, 2014 for firefighter participants and August 26, 2014 for police
officer participants, the Village’s annual contribution into the Plan shall not exceed 20% of
the Plan’s covered payroll. As such, any required excess as determined by the actuarial
valuation is covered by additional participant contributions. This funding policy is designed to
limit the Village’s exposure to contribute to the Plan. State contributions are recognized as a
revenue and expenditure in the General Fund. The actuarial valuation dated October 1, 2018
provided the actuarially determined contribution for the fiscal year ended September 30,
2020.
The Village’s (including the State) contribution rate was 21.45% of covered payroll for the
fiscal year ended September 30, 2020 which was determined by the October 1, 2018 actuarial
valuation.
SHARE PLAN
In fiscal year 2009, the Village created the Village of Key Biscayne Firefighters’ Share Plan
(the “Share Plan”). Prior to March 11, 2014, the Share 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 and no subsequent
allocations were paid into the Share Plan. The Village has contracted Empower Retirement
Advisory Services to provide certain administrative plan services. 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, 2020 is $1,167,173, which is accounted for in the pension trust
fund.
DROP PROGRAM
In fiscal year 2009, the Village created a deferred retirement option program (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
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
59
NOTE 11 – DEFINED BENEFIT PENSION PLAN (CONTINUED)
DROP PROGRAM (CONTINUED)
single lump sum payment; equal monthly installments or an annuity. The Village has
contracted Empower Retirement Advisory Services to provide certain administrative plan
services. As of September 30, 2020 there were twenty (20) participants in the DROP. The
balance in the DROP at September 30, 2020 is $3,690,436, which is accounted for in the
pension trust fund.
NOTE 12 –NET PENSION LIABILITY OF THE VILLAGE
At September 30, 2020, the Village reported a net pension liability (NPL) of $4,954,221,
which was measured as of September 30, 2019 (GASB 68 measurement date). In
accordance with GASB 67, information related to the NPL as of September 30, 2020 has
also been disclosed.
2020 2019
Total pension liability 52,053,547$ 48,166,187$
Plan fiduciary net position (48,521,804) (43,211,966) (a)
Net pension liability 3,531,743$ 4,954,221$
Plan fiduciary net position as a percentage
of total pension liability 93.22% 89.71%
(a) The 2019 plan fiduciary net position disclosed above does not agree to the pension trust
fund statement of changes in fiduciary net position (beginning of year net position
restricted for pension benefits), due to the timing of recognition of the deferred inflow
of resources reported in the year for actuarial purposes in the amount of $520,921.
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
60
NOTE 12 –NET PENSION LIABILITY OF THE VILLAGE (CONTINUED)
Changes in the Village’s net pension liability for the fiscal year ended September 30, 2020
(measured as of September 30, 2019) is as follows:
Total
Pension
Liability
Plan
Fiduciary
Net Position
Net
Pension
Liability
Beginning Balances - September 30, 2018 44,714,321$ 41,703,184$ 3,011,137$
Changes for the Year:
Service cost 1,218,739 -- 1,218,739
Interest 3,485,951 -- 3,485,951
Differences between actual and expected experience (159,538) -- (159,538)
Assumption changes 228,644 -- 228,644
Benefit payments (1,224,821) (1,224,821) --
Refunds (97,109) (97,109) --
Contributions - employer (from Village) -- 972,014 (972,014)
Contributions - employer (from State) -- 536,767 (536,767)
Contributions - employee (including buyback contributions) -- 621,376 (621,376)
Net investment income -- 803,476 (803,476)
Administrative expense -- (102,921) 102,921
Net Change 3,451,866 1,508,782 1,943,084
Ending Balances - September 30, 2019 48,166,187$ 43,211,966$ 4,954,221$
Police Officers and Firefighters
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
61
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, 2020 September 30, 2019
Actuarial Valuation: October 1, 2019 October 1, 2018
Interest rates:
Single discount rate 7.60% 7.65%
Inflation rate 2.75% 2.75%
Salary Increases 3.50% to 9.25% depending on age,
including inflation
3.50% 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.
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.
LONG-TERM EXPECTED RATE OF RETURN
The long-term expected rates of return on pension plan investments were determined based
upon the historical average (means returns) which best-estimate ranges of expected future
real rates of return. In order to determine the real rates of return, it is necessary to subtract
the expected inflation rate from the nominal investment return and investment expenses.
The long-term expected rate of return for the Plan was calculated by weighting the expected
future rates of return of each asset class by the corresponding target allocation percentages.
Best estimates of real rates of return for each major asset class included in the Plan’s target
asset allocation as of September 30, 2020 and 2019 are summarized in the following table:
Asset Class 2020 2019
Domestic equity 8.30% 7.50%
International equity 4.10% 2.70%
Fixed income 0.90% 3.60%
Real estate 0.00% 4.90%
Cash 0.50% 0.60%
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
62
NOTE 12 –NET PENSION LIABILITY OF THE VILLAGE (CONTINUED)
RATE OF RETURN
For the fiscal years ended September 30, 2020 and 2019, the annual money-weighted rate
of return on Plan investments, net of investment expense, was 9.84% and 3.15%,
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, 2020 and 2019, a single discount rate of 7.60%
and 7.65%, 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.
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
6.60% 7.60% 8.60%
2020 8,859,167$ 3,531,743$ (936,057)$
6.65% 7.65% 8.65%
2019 9,982,679$ 4,954,221$ 733,320$
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
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
For the fiscal year ended September 30, 2020, based on a September 30, 2019 measurement
date, the Village recognized pension expense of approximately $1,780,413 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 $ 1,827,236 $ --
Differences between expected and actual experience 6,167 (635,430)
Change of assumptions 599,390 --
Net difference between projected and actual
earnings on pension plan investments 853,579 --
Total $ 3,286,372 $ (635,430)
The deferred outflow of resources, resulting from the Village’s contributions to the Plan
subsequent to the measurement date of September 30, 2019 in the amount of $1,827,236
will be recognized as a reduction of the Village’s net pension liability in the subsequent
fiscal year. Other amounts reported as deferred outflows and deferred inflows of resources
related to pensions will be recognized as pension expense (income) as follows:
Fiscal Year Ending September 30 Amount
2021 8,328$
2022 36,069
2023 294,375
2024 484,934
823,706$
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
64
NOTE 13 – OTHER POST-EMPLOYMENT BENEFITS
PLAN DESCRIPTION
The Village provides an optional single employer defined benefit post-employment healthcare
plan (the OPEB Plan) to eligible individuals. The OPEB 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 OPEB Plan conform to Florida Statutes, which are the
legal authority for the plan. The OPEB Plan is not accounted for as a trust fund since an
irrevocable trust has not been established to fund the OPEB Plan. The OPEB Plan has no assets
and does not issue a separate financial report. As of the September 30, 2019 measurement
date, the following employees were covered by the benefit terms:
Inactive members and beneficiaries currently receiving benefits --
Inactive members entitled but not yet receiving benefits --
Active members 93
Total 93
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 September 30, 2018
Actuarial cost method Entry Age Normal
Actuarial assumptions:
Inflation 2.25%
Discount rate 2.75%
Projected salary increases 3.50% - 9.25%
Healthcare cost trend rate: 6.70%, initial Per Capital Cost trend rate.
Mortality Mortality tables used for Regular Class and Special Risk
Class members in the July 1, 2019 actuarial valuation of the
Florida Retirement System. They are based on the results of
a statewide experience study covering the period 2013
through 2018.
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
65
NOTE 13 – OTHER POST-EMPLOYMENT BENEFITS (CONTINUED)
ACTUARIAL METHODS AND ASSUMPTIONS (CONTINUED)
The Village does not provide funding for any portion of the premiums after retirement;
however, the Village recognizes that there is an “implicit subsidy” arising as a result of the
blended rate premium since retiree health care costs, on average, are higher than active
employee healthcare costs.
Changes in assumptions and other inputs include the change in the discount rate from
3.83% as of the beginning of the measurement period to 2.75% as of September 30, 2019
and the change in the assumed ultimate rate of inflation from 2.50% as of the beginning of
the measurement period to 2.25% as of September 30, 2019. This change is reflected in the
scheduled of changes in total OPEB liability.
TOTAL OPEB LIABILITY AND CHANGES IN TOTAL OPEB LIABILITY
At September 30, 2020, the Village reported a total OPEB liability of $435,108 using a
measurement date of September 30, 2019.
The detail of the changes in total OPEB liability for fiscal year 2020 is presented below:
Total OPEB
Liability
Beginning Balance - September 30, 2018 680,170$
Changes for the Year:
Service cost 71,395
Interest on the total OPEB liability 28,785
Changes of benefit terms 6,868
Difference between expected and actual experience (60,445)
Changes in assumptions and other inputs (291,665)
Net Change (245,062)
Ending Balance - September 30, 2019 435,108$
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
66
NOTE 13 – OTHER POST-EMPLOYMENT BENEFITS (CONTINUED)
SENSITIVITY OF TOTAL OPEB LIABILITY TO CHANGES IN THE DISCOUNT RATE OR
HEALTHCARE COST TREND RATE
The chart below presents the total OPEB liability of the Village, calculated using the
discount rate of 2.75%, as well as what the total OPEB liability would be if it were
calculated using a discount rate that is discount rate that is 1-percentage-point lower or 1-
percentage-point higher than the current rate:
Current
1% Discount Rate 1%
September 30, Decrease Assumption Increase
1.75% 2.75% 3.75%
2020 470,485$ 435,108$ 400,122$
The chart below presents the total OPEB liability of the Village, calculated using the
healthcare cost trend rate of 6.70%, as well as what the total OPEB liability would be if it
were calculated using a healthcare cost trend rate that is 1-percentage-point lower or 1-
percentage-point higher than the current rate:
Current Healthcare
1% Cost Trend Rate 1%
September 30, Decrease Assumption Increase
5.70% 6.70% 7.70%
2020 372,945$ 435,108$ 511,029$
OPEB EXPENSE AND DEFERRED OUTFLOWS/INFLOWS OF RESOURCES RELATED TO OPEB
For the fiscal year ended September 30, 2020, the Village recognized an OPEB expense of
$61,291. At September 30, 2020, the Village reported deferred outflows and inflows of
resources related to OPEB from the following source:
Deferred
Outflows
Deferred
Inflows
of Resources of Resources
Differences between expected and actual experience $ -- $ 53,497
Change of assumptions and other inputs -- 295,018
Total --$ 348,515$
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
67
NOTE 13 – OTHER POST-EMPLOYMENT BENEFITS (CONTINUED)
OPEB EXPENSE AND DEFERRED OUTFLOWS/INFLOWS OF RESOURCES RELATED TO OPEB
(CONTINUED)
Deferred inflows of resources will be recognized as follows:
Fiscal Year Ending September 30 Amount
2021 (45,757)$
2022 (45,757)
2023 (45,757)
2024 (45,757)
2025 (45,757)
Thereafter (119,730)
(348,515)$
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
Variance
with Final
Budget -
Actual Positive
Original Final Amounts (Negative)
Revenues
Property taxes 24,972,672$ 24,972,672$ 25,276,850$ 304,178$
Utility taxes/communications
services tax 2,840,684 2,840,684 2,876,032 35,348
Franchise fees 832,997 832,997 837,835 4,838
Licenses and permits 1,531,949 1,531,949 1,251,238 (280,711)
Intergovernmental 2,073,753 2,073,753 1,846,525 (227,228)
Charges for services 3,279,343 3,279,343 3,095,796 (183,547)
Interest 100,000 100,000 193,369 93,369
Grants -- -- 323,185 323,185
Miscellaneous income 169,451 169,451 121,764 (47,687)
Total Revenues 35,800,849 35,800,849 35,822,594 21,745
Expenditures
Current:
General government:
Elected officials 235,071 235,071 185,746 49,325
Village clerk 234,211 234,211 210,765 23,446
Administration 2,809,590 2,809,590 2,911,169 (101,579)
Village attorney 640,000 640,000 542,687 97,313
Total general government 3,918,872 3,918,872 3,850,367 68,505
Public safety:
Police 8,314,136 8,314,136 8,576,831 (262,695)
Fire 8,400,032 8,400,032 8,866,498 (466,466)
Total public safety 16,714,168 16,714,168 17,443,329 (729,161)
Public works 2,734,031 2,734,031 2,187,424 546,607
Building, zoning and planning 2,281,284 2,281,284 2,336,759 (55,475)
Parks and recreation:
Parks 1,836,795 1,836,795 1,931,447 (94,652)
Community center 3,281,217 3,281,217 1,544,964 1,736,253
Athletic division 629,121 629,121 474,720 154,401
Total parks and recreation 5,747,133 5,747,133 3,951,131 1,796,002
Debt service:
Principal 3,728,705 3,728,705 3,728,705 --
Interest and fiscal charges 405,269 405,269 423,507 (18,238)
Total Expenditures 35,529,462 35,529,462 33,921,222 1,608,240
Excess of Revenues
over Expenditures 271,387 271,387 1,901,372 1,629,985
Other Financing Uses
Transfers out (208,971) (208,971) (208,971) --
Total Other Financing Uses (208,971) (208,971) (208,971) --
Net Change in Fund Balance 62,416$ 62,416$ 1,692,401$ (1,629,985)$
Budgeted Amounts
VILLAGE OF KEY BISCAYNE, FLORIDA
BUDGETARY COMPARISON SCHEDULE
GENERAL FUND
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
REQUIRED SUPPLEMENTARY INFORMATION
See notes to budgetary comparison schedule.
68
Variance
with Final
Budget -
Actual Positive
Original Final Amounts (Negative)
Revenues
Intergovernmental 1,093,232$ 1,093,232$ 1,033,539$ (59,693)$
Interest 1,000 1,000 17 (983)
Total Revenues 1,094,232 1,094,232 1,033,556 (60,676)
Expenditures
Current:
General government:
Transit 504,494 504,494 377,561 126,933
Total general government 504,494 504,494 377,561 126,933
Debt service:
Principal 539,533 539,533 535,343 4,190
Interest and fiscal charges 62,155 62,155 61,296 859
Total Expenditures 1,106,182 1,106,182 974,200 131,982
Excess (Deficiency) of Revenues over
Expenditures (11,950) (11,950) 59,356 71,306
Other Financing Uses
Transfers out (400,000) (400,000) (400,000) --
Total Other Financing Uses (400,000) (400,000) (400,000) --
Net Change in Fund Balance (411,950)$ (411,950)$ (340,644)$ (71,306)$
VILLAGE OF KEY BISCAYNE, FLORIDA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE
TRANSPORTATION SPECIAL REVENUE FUND
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
Budgeted Amounts
See notes to budgetary comparison schedule.
69
Variance
with Final
Budget -
Actual Positive
Original Final Amounts (Negative)
Revenues
Property taxes 252,249$ 252,249$ 255,322$ 3,073$
Appropriation of prior years' fund balance 7,459,462 7,459,462 -- (7,459,462)
Interest -- -- 557 557
Total Revenues 7,711,711 7,711,711 255,879 (7,456,389)
Expenditures
Current:
Parks and recreation 7,711,711 7,711,711 4,165,187 3,546,524
Total parks and recreation 7,711,711 7,711,711 4,165,187 3,546,524
Total Expenditures 7,711,711 7,711,711 4,165,187 3,546,524
Net Change in Fund Balance --$ --$ (3,909,308)$ 3,909,308$
VILLAGE OF KEY BISCAYNE, FLORIDA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE
PROS LAND TRUST SPECIAL REVENUE FUND
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
Budgeted Amounts
See notes to budgetary comparison schedule.
70
VILLAGE OF KEY BISCAYNE, FLORIDA
REQUIRED SUPPLEMENTARY INFORMATION
NOTES TO BUDGETARY COMPARISON SCHEDULE
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
71
NOTE 1 – BUDGETS AND BUDGETARY ACCOUNTING
An annual appropriated budget is prepared for the General Fund, the Transportation Special
Revenue Fund, the PROS Land Trust Special Revenue Fund, and the Capital Improvements
Fund. 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, 2020, there were no supplemental appropriations.
(d) Formal budgetary integration is employed as a management control device for the
General Fund.
(e) The budgets for the general fund and the transportation special revenue fund 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.
2020 2019** 2018 2017 2016 2015 2014
Total Pension Liability
Service cost 1,102,891$ 1,218,739$ 1,019,667$ 982,149$ 892,483$ 905,151$ 1,325,960$
Interest 3,717,180 3,485,951 3,044,406 2,815,914 2,655,690 2,423,657 2,505,808
Benefit changes -- -- 3,561,208 -- -- -- (4,253,914)
Difference between actual and expected
experience 182,052 (159,538) (636,655) 17,729 (678,816) 413,544 (40,185)
Assumption changes 242,220 228,644 194,414 608,244 368,874 351,602 (96,578)
Benefit payments (1,343,040) (1,224,821) (1,456,886) (1,060,547) (570,278) (653,498) (447,084)
Refunds (13,943) (97,109) (6,523) (36,765) (32,769) (8,759) (99,486)
Other (release of excess state reserves) -- -- -- -- (206,710) (297,383) --
Net Change in Total Pension Liability 3,887,360 3,451,866 5,719,631 3,326,724 2,428,474 3,134,314 (1,105,479)
Total Pension Liability - Beginning 48,166,187 44,714,321 38,994,690 35,667,966 33,239,492 30,105,178 31,210,657
Total Pension Liability - Ending (a)52,053,547$ 48,166,187$ 44,714,321$ 38,994,690$ 35,667,966$ 33,239,492$ 30,105,178$
Plan Fiduciary Net Position
Contributions - employer (from Village) 1,268,147$ 972,014$ 814,693$ 937,715$ 322,848$ 383,181$ 844,637$
Contributions - employer (from State) 559,089 536,767 870,899 -- 397,294 456,253 475,709
Contributions - employee (including
buyback contributions)677,201 621,376 650,201 599,086 606,697 579,425 639,478
Net investment income 4,270,408 803,476 3,576,144 4,090,514 2,574,564 (103,179) 2,632,785
Benefit payments (1,343,040) (1,224,821) (1,456,886) (1,060,547) (570,278) (653,498) (447,084)
Refunds (13,943) (97,109) (6,523) (36,765) (32,769) (8,759) (99,486)
Administrative expense (108,024) (102,921) (87,099) (60,179) (69,369) (85,607) (86,629)
Net Change in Plan Fiduciary Net Position 5,309,838 1,508,782 4,361,429 4,469,824 3,228,987 567,816 3,959,410
Plan Fiduciary Net Position - Beginning 43,211,966 41,703,184 37,341,755 32,871,931 29,642,944 29,075,128 25,115,718
Plan Fiduciary Net Position - Ending (b)48,521,804$ 43,211,966$ * 41,703,184$ 37,341,755$ 32,871,931$ 29,642,944$ 29,075,128$
Net Pension Liability - Ending (a) - (b)3,531,743$ 4,954,221$ 3,011,137$ 1,652,935$ 2,796,035$ 3,596,548$ 1,030,050$
Plan Fiduciary Net Position as a Percentage
of Total Pension Liability 93.22% 89.71% 93.27% 95.76% 92.16% 89.18% 96.58%
Covered Payroll 5,556,330$ 5,917,871$ 6,192,393$ 5,671,587$ 5,778,063$ 5,518,334$ 6,053,762$
Net Pension Liability as a Percentage of
Covered Payroll 63.56% 83.72% 48.63% 29.14% 48.39% 65.17% 17.02%
PENSION TRUST FUND
* The Plan's 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 each year for actuarial purposes.
** Certain amounts related to the total pension liability and plan fiduciary net position for 2019 have been updated in the 2020 Comprehensive Annual Financial Report to
consider timing and recognition of employer contributions for actuarial purposes.
September 30,
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
AND RELATED RATIOS
SCHEDULE OF CHANGES IN THE VILLAGE'S NET PENSION LIABILITY
72
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%
2018 1,032,174 1,685,592 ** (653,418) ** 6,192,393 27.22%
2019 1,340,518 1,508,781 ** (168,263) ** 5,917,871 25.50%
2020 1,186,442 1,827,236 ** (640,794) ** 5,556,330 32.89%
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
9 years (single equivalent period); 30 years (longest period)
Methods and Assumptions Used to Determine Contribution Rate for the Fiscal Year Ended September
30, 2020:
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
7.65%
Experience-based table of rates that are specific to the type of eligibility
condition.
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. For males, the base mortality
rates include a 90% blue collar and 10% white collar adjustment. For
females, the base mortality rates include a 100% white collar adjustment.
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.
* 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 Cost Method
Level Dollar, Closed
October 1, 2018
VILLAGE OF KEY BISCAYNE, FLORIDA
REQUIRED SUPPLEMENTARY INFORMATION
PENSION TRUST FUND
SCHEDULE OF VILLAGE CONTRIBUTIONS
** A portion of this over-contribution resulted from recognizing previous years' prepaid (advance) employer
contributions in the amount of $289,001 during fiscal year 2018, $520,921 during fiscal year 2019 and $520,921
during fiscal year 2020.
73
2020 2019 2018 2017 2016 2015 2014
Annual Money-Weighted Rate of Return,
Net of Investment Expense 9.84% 3.15% 9.98% 13.02% 9.03% 0.10% 10.70%
PENSION TRUST FUND
September 30,
SCHEDULE OF INVESTMENT RETURNS
VILLAGE OF KEY BISCAYNE, FLORIDA
REQUIRED SUPPLEMENTARY INFORMATION
This schedule is presented as required by accounting principles generally accepted in the United States of America, however
until a full 10-year trend is compiled, information is presented for those years available.
74
Measurement Date: September 30,2019 2018 2017
Total OPEB Liability
Service cost 71,395$ 73,044$ 75,574$
Interest on the total OPEB liability 28,785 23,814 19,205
Changes in benefit terms 6,868 -- --
Difference between expected and
actual experience (60,445) -- --
Changes in assumptions and other inputs (291,665) (24,054) (26,144)
Benefit payments -- -- (10,412)
Net change in total OPEB liability (245,062) 72,804 58,223
Total OPEB Liability - Beginning 680,170 607,366 549,143
Total OPEB Liability - Ending 435,108$ 680,170$ 607,366$
Covered employee payroll 8,562,887$ 11,015,562$ 7,011,729$
Total OPEB Liability as a percentage of 5.08% 6.17% 8.66%
covered employee payroll
VILLAGE OF KEY BISCAYNE, FLORIDA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CHANGES IN TOTAL OPEB LIABILITY AND RELATED RATIOS
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.
75
SUPPLEMENTARY INFORMATION
Variance
with Final
Budget -
Actual Positive
Original Final Amounts (Negative)
Revenues
Grants 967,000$ 967,000$ 1,054,835$ 87,835$
Miscellaneous revenue and other -- -- 23,034 23,034
Total Revenues 967,000 967,000 1,077,869 110,869
Expenditures
Current:
General government:
General --$ --$ 346,265$ (346,265)$
Total general government -- -- 346,265 (346,265)
Public safety:
Police 300,000 300,000 -- 300,000
Fire rescue 1,000,000 1,000,000 191,141 808,859
Total public safety 1,300,000 1,300,000 191,141 1,108,859
Public works 3,132,000 3,132,000 245,771 2,886,229
Parks and recreation:
Parks 1,615,000 1,615,000 10,862 1,604,138
Community center 1,000,000 1,000,000 375 999,625
Total parks and recreation 2,615,000 2,615,000 11,237 2,603,763
Total Expenditures 7,047,000 7,047,000 794,414 6,252,586
Excess (Deficiency) of
Revenues over Expenditures (6,080,000) (6,080,000) 283,455 6,363,455
Other Financing Sources
Appropriation of prior years':
Reserves - working capital 2,721,029 2,721,029 -- (2,721,029)
Loan proceeds 2,750,000 2,750,000 -- (2,750,000)
Transfers in 608,971 608,971 608,971 --
Total Other Financing Sources 6,080,000 6,080,000 608,971 (5,471,029)
Net Change in Fund Balance --$ --$ 892,426$ 892,426$
VILLAGE OF KEY BISCAYNE, FLORIDA
SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE
CAPITAL IMPROVEMENTS FUND
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
Budgeted Amounts
See notes to budgetary comparison schedule.
76
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:
78-82
Revenue Capacity
These schedules contain information to help the reader assess the Village's most
significant local revenue source, the property tax.
83-87
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.
88-91
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.
92-94
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.
95-96
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.
77
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Governmental activities
Net investment in capital assets 43,428,433$ 44,373,229$ 43,714,666$ 51,426,773$ 54,854,783$ 51,961,356$ 62,100,873$ 70,944,473$ 72,480,963$ 77,859,231$
Restricted 1,170,247 500,137 3,138,445 3,455,654 2,405,158 3,425,433 2,665,724 2,078,112 8,639,324 3,529,727
Unrestricted 16,491,371 19,598,291 16,968,354 6,195,833 14,490,922 19,326,602 14,340,755 19,707,367 11,209,773 14,126,305
Total governmental activities net position 61,090,051 64,471,657 63,821,465 61,078,260 71,750,863 74,713,391 79,107,352 92,729,952 92,330,060 95,515,263
Business-type activities
Net investment in capital assets 16,970,470 16,462,270 15,884,955 13,788,293 12,995,027 13,260,222 13,463,710 4,080,025 4,509,507 2,577,144
Unrestricted 1,133,034 706,195 439,166 1,477,416 719,861 651,997 (599,305) (888,228) (1,173,171) 1,529,482
Total business-type activities net position 18,103,504 17,168,465 16,324,121 15,265,709 13,714,888 13,912,219 12,864,405 3,191,797 3,336,336 4,106,626
Total government
Net investment in capital assets 60,398,903 60,835,499 59,599,621 65,215,066 67,849,810 65,221,578 75,564,583 75,024,498 76,990,470 80,436,375
Restricted 1,170,247 500,137 3,138,445 3,455,654 2,405,158 3,425,433 2,665,724 2,078,112 8,639,324 3,529,727
Unrestricted 17,624,405 20,304,486 17,407,520 7,673,249 15,210,783 19,978,599 13,741,450 18,819,139 10,036,602 15,655,787
Total Government Net Position 79,193,555$ 81,640,122$ 80,145,586$ 76,343,969$ 85,465,751$ 88,625,610$ 91,971,757$ 95,921,749$ 95,666,396$ 99,621,889$
VILLAGE OF KEY BISCAYNE, FLORIDA
NET POSITION BY COMPONENT
LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
78
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Expenses
Governmental activities:
General government 2,830,412$ 3,379,954$ 9,344,606$ 8,526,705$ 4,100,859$ 7,579,355$ 4,536,855$ 6,211,564$ 5,343,922$ 6,427,517$
Police 6,853,329 5,818,890 6,065,025 6,362,729 4,103,543 6,240,840 6,881,360 7,681,000 9,273,109 8,635,877
Fire 5,685,278 7,299,320 7,024,661 7,823,159 5,345,543 7,149,458 7,106,286 7,628,618 9,922,713 8,820,555
Public works 1,719,526 1,736,803 2,221,905 1,798,163 1,823,897 2,078,721 2,901,870 4,188,854 3,358,261 3,449,872
Building, zoning and planning 1,714,303 1,808,574 2,306,446 2,153,954 2,075,416 2,165,717 2,550,733 2,366,496 2,467,478 2,346,614
Parks and recreation 4,232,147 4,201,578 4,175,408 4,623,868 4,850,623 5,388,588 5,839,083 5,954,340 6,202,034 4,867,328
Interest on long-term debt 1,217,874 843,965 935,242 962,167 816,313 796,152 894,934 701,558 658,587 456,932
Total governmental activities 24,252,869 25,089,084 32,073,293 32,250,745 23,116,194 31,398,831 30,711,121 34,732,430 37,226,104 35,004,695
Business-type activities:
Stormwater 815,402 689,287 715,836 1,109,510 1,783,865 934,223 1,060,705 1,234,916 856,653 1,108,192
Sanitary sewer 197,474 1,234,279 1,133,209 1,126,907 1,120,166 1,137,592 994,042 9,545,452 -- --
Solid waste 546,534 563,995 574,686 583,083 582,943 840,730 792,044 698,321 779,508 756,508
Total business-type activities 1,559,410 2,487,561 2,423,731 2,819,500 3,486,974 2,912,545 2,846,791 11,478,689 1,636,161 1,864,700
Total government expenses 25,812,279$ 27,576,645$ 34,497,024$ 35,070,245$ 26,603,168$ 34,311,376$ 33,557,912$ 46,211,119$ 38,862,265$ 36,869,395$
Program revenues
Governmental activities:
Charges for services:
General government 169,307$ 177,574$ 140,587$ 160,800$ 157,868$ 147,693$ 183,901$ 161,527$ 224,750$ 185,995$
Police 1,763 375 1,455 4,700 20,011 -- 3,571 68,809 21,559 --
Fire 190,989 145,544 188,169 210,678 193,442 165,106 162,683 191,529 161,450 158,932
Building, zoning and planning 2,184,127 2,347,092 2,744,711 2,256,151 3,136,916 2,714,085 1,338,485 1,216,539 1,639,820 1,151,242
Parks and recreation 2,287,983 2,614,034 2,622,554 2,805,925 2,710,396 3,033,636 3,142,475 3,377,137 2,766,189 2,850,865
Operating grants and contributions 77,638 6,629 426,917 97,970 85,315 54,331 59,412 53,210 62,174 323,185
Capital grants and contributions 730,492 783,886 803,620 826,282 7,854,679 867,197 873,734 1,733,691 475,058 1,516,214
Total governmental activities program revenues 5,642,299 6,075,134 6,928,013 6,362,506 14,158,627 6,982,048 5,764,261 6,802,442 5,351,000 6,186,433
Business-type activities:
Charges for services:
Stormwater 979,865 935,352 958,114 907,324 939,798 908,269 933,683 941,302 934,959 1,563,529
Solid waste 597,431 588,449 592,480 591,079 600,688 652,455 651,344 841,501 823,157 1,061,921
Capital grants and contributions:
Stormwater -- -- -- -- 47,872 -- -- -- -- --
Sanitary sewer 258,500 -- -- -- -- -- -- -- -- --
Operating grants and contributions:
Stormwater -- -- -- -- -- 164,176 -- -- -- --
Total business-type activities program revenues 1,835,796 1,523,801 1,550,594 1,498,403 1,588,358 1,724,900 1,585,027 1,782,803 1,758,116 2,625,450
Total program revenues 7,478,095$ 7,598,935$ 8,478,607$ 7,860,909$ 15,746,985$ 8,706,948$ 7,349,288$ 8,585,245$ 7,109,116$ 8,811,883$
(Continued)
VILLAGE OF KEY BISCAYNE, FLORIDA
CHANGES IN NET POSITION
LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
79
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Net (expense) revenue
Governmental activities (18,610,570)$ (19,013,950)$ (25,145,280)$ (25,888,239)$ (8,957,567)$ (24,416,783)$ (24,946,860)$ (27,929,988)$ (31,875,104)$ (28,818,262)$
Business-type activities 276,386 (963,760) (873,137) (1,321,097) (1,898,616) (1,187,645) (1,261,764) (9,695,886) 121,955 760,750
Total net expense (18,334,184)$ (19,977,710)$ (26,018,417)$ (27,209,336)$ (10,856,183)$ (25,604,428)$ (26,208,624)$ (37,625,874)$ (31,753,149)$ (28,057,512)$
General revenues
Governmental activities:
Taxes:
Property taxes 16,646,040$ 16,985,109$ 17,499,835$ 17,857,711$ 19,353,288$ 22,249,642$ 24,202,255$ 24,992,663$ 25,400,645$ 25,532,172$
Utility taxes 1,705,238 1,727,651 1,789,909 1,967,061 1,979,733 2,007,095 2,110,494 2,136,221 2,128,389 2,224,417
Franchise fees 735,519 846,252 780,245 574,639 595,196 603,889 479,194 655,599 192,753 837,835
Communications services tax 964,324 946,399 1,010,931 917,449 862,165 753,385 698,927 734,422 681,648 651,615
Intergovernmental 1,575,314 1,667,597 1,772,208 1,902,177 1,901,774 1,955,183 1,555,215 2,595,087 2,667,562 2,419,835
Investment earnings 37,254 37,985 16,722 34,991 47,004 111,484 78,443 37,503 146,404 193,943
Miscellaneous 147,065 212,697 1,627,479 148,140 139,196 81,516 184,489 244,650 257,811 143,648
Transfers (28,134) (28,134) (28,134) (257,134) (343,884) (382,883) 31,804 9,545,452 -- --
Total governmental activities 21,782,620 22,395,556 24,469,195 23,145,034 24,534,472 27,379,311 29,340,821 40,941,597 31,475,212 32,003,465
Business-type activities:
Investment earnings 2,162 587 659 5,551 3,911 5,986 24,282 23,278 22,584 9,540
Capital Contributions from General Fund -- -- -- -- -- -- 221,472 -- -- --
Transfers 28,134 28,134 28,134 257,134 343,884 382,883 (31,804) -- -- --
Total business-type activities 30,296 28,721 28,793 262,685 347,795 388,869 213,950 23,278 22,584 9,540
Total general revenues 21,812,916$ 22,424,277$ 24,497,988$ 23,407,719$ 24,882,267$ 27,768,180$ 29,554,771$ 40,964,875$ 31,497,796$ 32,013,005$
Change in Net Position
Governmental activities 3,172,050$ 3,381,606$ (676,085)$ (2,743,205)$ 15,576,905$ 2,962,528$ 4,393,961$ 13,011,609$ (399,892)$ 3,185,203$
Business-type activities 306,682 (935,039) (844,344) (1,058,412) (1,550,821) (798,776) (1,047,814) (9,672,608) 144,539 770,290
Total Change in Net Position 3,478,732$ 2,446,567$ (1,520,429)$ (3,801,617)$ 14,026,084$ 2,163,752$ 3,346,147$ 3,339,001$ (255,353)$ 3,955,493$
CHANGES IN NET POSITION
(Continued)
LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
VILLAGE OF KEY BISCAYNE, FLORIDA
80
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
General fund
Non-spendable 305,730$ 303,918$ 272,330$ 353,823$ 268,176$ 443,084$ 598,249$ 914,616$ 1,289,448$ 588,364$
Restricted 1,170,247 1,054,070 1,466,704 1,574,817 1,875,857 2,795,695 1,950,591 1,254,841 1,125,496 214,093
Committed 12,039,224 4,858,269 5,065,439 5,214,654 13,538,053 11,606,197 12,034,340 4,090,000 4,000,000 3,378,792
Assigned 4,028,870 8,178,544 10,852,640 11,756,540 11,870,006 13,104,992 16,263,205 10,962,611 8,692,560 12,618,656
Total General Fund 17,544,071 14,394,801 17,657,113 18,899,834 27,552,092 27,949,968 30,846,385 17,222,068 15,107,504 16,799,905
All other governmental funds
Restricted -- 573,701 1,671,741 470,334 529,301 -- 715,133 823,271 2,036,456 3,315,634
Committed 3,665,259 6,060,286 4,240,104 4,371,204 3,188,871 629,740 -- 7,214,656 7,465,162 4,188,550
Assigned -- -- -- -- 59,404 414,264 -- 1,008,170 -- 931,349
Unassigned (1,077,816) (690,343) (278,254) (314,462) -- -- -- -- -- --
Unreserved, reported in:
Special revenue fund -- -- -- -- -- -- 825,896 -- -- --
Capital projects funds -- -- -- -- -- (2,114,581) (6,305,354) -- 2,291,441 --
Total Other Governmental Funds 2,587,443 5,943,644 5,633,591 4,527,076 3,777,576 (1,070,577) (4,764,325) 9,046,097 11,793,059 8,435,533
Total Governmental Funds 20,131,514$ 20,338,445$ 23,290,704$ 23,426,911$ 31,329,668$ 26,879,391$ 26,082,060$ 26,268,165$ 26,900,563$ 25,235,438$
Note: The Village implemented GASB Statement No. 54 for the fiscal year ended September 30, 2011.
VILLAGE OF KEY BISCAYNE, FLORIDA
FUND BALANCES OF GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
81
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Revenues
Ad valorem taxes 16,646,040$ 16,985,109$ 17,499,835$ 17,857,711$ 19,353,288$ 22,249,642$ 24,202,255$ 24,992,663$ 25,400,645$ 25,276,850$
Franchise fees 735,519 846,252 780,245 574,639 595,196 603,889 479,194 655,599 192,753 837,835
Utility taxes/communication services tax 2,717,209 2,709,498 2,800,840 2,884,510 2,841,898 2,760,480 2,809,421 2,870,643 2,810,037 2,876,032
Licenses and permits 1,948,820 2,383,500 2,542,103 2,090,916 3,076,414 2,484,872 1,239,116 1,211,159 1,658,676 1,251,238
Intergovernmental revenue 2,305,806 2,451,483 2,575,828 2,728,459 2,756,453 2,822,380 2,428,949 3,462,454 3,137,920 1,846,525
Charges for services 2,885,349 2,901,119 3,155,373 3,347,338 3,142,219 3,548,985 3,591,999 3,804,382 3,155,092 3,095,796
Grants 77,638 6,629 426,917 97,970 85,315 54,331 59,412 881,210 62,174 323,185
Investment income 37,254 37,985 16,722 34,991 47,004 111,484 78,443 37,503 146,404 193,369
Contributions -- -- -- -- 7,000,000 -- -- 38,325 4,700 1,150
Miscellaneous 147,065 212,697 1,627,479 148,140 139,196 81,516 184,489 244,650 257,811 120,614
Total revenues 27,500,700 28,534,272 31,425,342 29,764,674 39,036,983 34,717,579 35,073,278 38,198,588 36,826,212 35,822,594
Expenditures
Current:
General government 1,929,153 2,066,501 2,255,188 2,468,672 2,884,740 3,783,031 3,265,030 3,755,605 3,789,714 3,810,666
Fire 6,557,442 7,056,020 7,014,382 7,574,576 6,726,873 6,895,590 6,882,673 7,499,587 8,203,230 8,773,421
Police 5,312,977 5,453,853 5,750,069 6,018,581 6,077,940 5,957,079 6,621,521 7,603,393 7,656,656 8,371,181
Public works 1,711,868 1,727,203 1,826,782 1,732,554 1,752,803 1,873,594 2,683,504 3,968,495 2,093,899 2,185,127
Building, planning and zoning 1,702,541 1,777,349 1,842,175 2,064,687 1,982,159 2,074,777 2,476,950 2,336,937 2,446,847 2,336,759
Parks and recreation 3,799,408 3,764,570 4,092,835 4,170,205 4,258,750 4,754,626 5,073,774 5,071,372 5,074,847 3,940,619
Capital outlay 1,963,219 3,793,179 2,294,068 1,769,634 3,334,821 6,938,850 6,567,150 3,278,569 2,063,481 351,237
Intergovernmental:
Payment under interlocal agreement -- -- -- 4,574,703 8,545 2,390,330 -- -- -- --
Debt service:
Principal 2,348,506 2,436,139 2,531,116 2,716,772 2,920,699 3,294,521 3,459,733 3,771,867 4,183,733 3,728,705
Interest and other fiscal charges 1,520,433 828,393 913,409 875,949 973,012 822,575 777,099 726,658 681,407 423,507
Total expenditures 26,845,547 28,903,207 28,520,024 33,966,333 30,920,342 38,784,973 37,807,434 38,012,483 36,193,814 33,921,222
Excess (deficiency) of revenues over expenditures 655,153 (368,935) 2,905,318 (4,201,659) 8,116,641 (4,067,394) (2,734,156) 186,105 632,398 1,901,372
Other financing sources (uses)
Transfers in -- 5,816,222 -- 904,093 1,855,623 4,260,203 2,327,481 15,604,398 4,292,381 --
Transfers out (28,134) (5,844,356) (28,134) (1,161,227) (2,199,507) (4,643,086) (2,295,677) (15,604,398) (4,292,381) (208,971)
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 -- -- -- -- -- -- -- -- -- --
Capital lease proceeds 321,681 604,000 -- 20,000 130,000 -- 1,905,021 -- -- --
Total other financing sources (uses)293,547 575,866 46,941 4,337,866 (213,884) (382,883) 1,936,825 -- -- (208,971)
Net Change in Fund Balances 948,700$ 206,931$ 2,952,259$ 136,207$ 7,902,757$ (4,450,277)$ (797,331)$ 186,105$ 632,398$ 1,692,401$
Debt service as a percentage
of non-capital expenditures 16% 13% 13% 11% 14% 14% 14% 13% 14% 12%
VILLAGE OF KEY BISCAYNE, FLORIDA
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
82
Fiscal Ad Valorem Franchise Utility Inter- Communications
Year Taxes Taxes Taxes governmental Services Tax Total
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
2018 24,992,663 655,599 2,136,221 3,462,454 734,422 31,981,359
2019 25,400,645 192,753 2,128,389 3,137,920 681,648 31,541,355
2020 25,276,850 837,835 2,224,417 2,880,064 651,615 31,870,781
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.
83
Total
Fiscal Year Total Net Direct
Ended Tax Roll Residential Commercial Personal Assessed Tax
September 30, Year Property Property Property Value Rate
2011 2010 5,114,029,641$ 276,917,774$ 38,812,865$ 5,429,760,280$ 3.200
2012 2011 5,458,639,449 281,666,505 41,574,020 5,781,879,974 3.200
2013 2012 5,445,595,704 294,710,250 38,326,390 5,778,632,344 3.200
2014 2013 5,800,745,002 313,747,054 37,410,973 6,151,903,029 3.000
2015 2014 6,306,477,954 353,222,413 37,956,862 6,697,657,229 3.000
2016 2015 7,291,699,676 393,809,175 36,239,673 7,721,748,524 3.000
2017 2016 7,875,742,931 425,303,529 38,238,417 8,339,284,877 3.000
2018 2017 8,148,976,226 445,692,829 39,913,640 8,634,582,695 3.000
2019 2018 7,913,504,848 481,397,840 47,424,912 8,442,327,600 3.100
2020 2019 7,686,491,975 519,580,466 41,003,427 8,247,075,868 3.195
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
84
Florida South Total
Debt Library Total Debt Total Inland Florida Direct and
Fiscal Tax Roll General Debt Total Operating Service District County Operating Service School Navigation Water Overlapping
Year Year Operations Service Village Millage Millage Millage Millage Millage Millage Millage District Management Other Rates
2011 2010 3.200 - 3.200 5.428 0.445 0.284 6.157 7.864 0.385 8.249 0.035 0.535 0.589 18.764
2012 2011 3.200 - 3.200 4.805 0.285 0.180 5.270 7.765 0.240 8.005 0.035 0.374 0.562 17.445
2013 2012 3.200 - 3.200 4.704 0.285 0.173 5.161 7.765 0.233 7.998 0.035 0.368 0.561 17.322
2014 2013 3.000 - 3.000 4.704 0.422 0.173 5.298 7.644 0.333 7.977 0.035 0.352 0.559 17.221
2015 2014 3.000 - 3.000 4.667 0.450 0.284 5.401 7.775 0.199 7.974 0.035 0.158 0.727 17.294
2016 2015 3.000 - 3.000 4.667 0.450 0.284 5.401 7.413 0.199 7.612 0.032 0.146 0.709 16.900
2017 2016 3.000 - 3.000 4.667 0.400 0.284 5.351 7.138 0.184 7.322 0.032 0.136 0.695 16.536
2018 2017 3.000 - 3.000 4.667 0.400 0.284 5.351 6.774 0.220 6.994 0.032 0.128 0.650 16.154
2019 2018 3.100 - 3.100 4.667 0.464 0.284 5.415 6.504 0.229 6.733 0.032 0.121 0.614 16.015
2020 2019 3.195 - 3.195 4.667 0.478 0.284 5.429 7.025 0.123 7.148 0.032 0.115 0.632 16.551
(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 $1,000 of assessed value.
Sources: Village of Key Biscayne Finance Department and Miami-Dade County Property Appraiser's Office.
85
Percent of Percent of
Total Total
Net Village Net Net Village Net
Taxable Assessed Taxable Assessed
Taxpayer Value Rank Value Taxpayer Value Rank Value
GB JT Hotel Partners LP 84,942,000$ 1 1.03% Consultatio Key Biscayne LLC 66,602,600$ 1 1.23%
Red Dragon's Sands LTD 37,786,586 2 0.46% GB JT Hotel Partners LP 46,000,000 2 0.85%
Galleria of Key Biscayne Inc. 28,550,000 3 0.35% EDW A McCarthy-Archbishop 23,385,548 3 0.43%
Edgardo Defortuna 20,660,446 4 0.25% Galleria of Key Biscayne Inc. 17,400,000 4 0.32%
Timothy Bryan 20,425,448 5 0.25% Red Dragon's Sands LTD 16,025,204 5 0.30%
United Real Estate Ventures Inc. 20,198,061 6 0.24% Key Biscayne Properties LLC 15,666,076 6 0.29%
240 Crandon Investments LLC 17,400,000 7 0.21% Key Biscayne Presbyterian Church 12,635,262 7 0.23%
JLK Global Fund US Inc. 14,377,000 8 0.17% Ocean Club Community Assoc. 12,500,000 8 0.23%
Atlantic USA Inc. 14,359,318 9 0.17% JLK Global Fund US Inc. 12,147,515 9 0.22%
Vali Key LLC 14,300,000 10 0.17% 260 Cape FLA LLC 10,928,675 10 0.20%
272,998,859$ 3.31%233,290,880$ 4.31%
Source: Tax roll provided by Miami-Dade County Property Appraiser
2020 2011
VILLAGE OF KEY BISCAYNE, FLORIDA
PRINCIPAL PROPERTY TAXPAYERS
CURRENT YEAR AND TEN YEARS AGO
86
Total Taxes
Fiscal Year Levied for Collections in
Ended Fiscal Percent Subsequent Percent
September 30, Year Amount of Levy Year's Amount of Levy
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%
2019 26,436,080 25,400,645 96.08% -- 25,400,645 96.08%
2020 26,552,548 25,276,850 95.20% -- 25,276,850 95.20%
Source:
VILLAGE OF KEY BISCAYNE, FLORIDA
PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
the Fiscal Year
of the Levy to Date
Total Collections
Collected within
87
Fiscal Year General Capital Debt
Ended Obligation Revenue Lease Revenue Loans Per
September 30, Bonds Bonds Payable Bonds Payable Total Capita
2011 --$ 27,757,222$ --$ 4,130,000$ 4,497,388$ 36,384,610$ 2,948
2012 -- 25,543,132 -- 3,655,000 4,254,706 33,452,838 2,710
2013 -- 28,759,034 -- 3,170,000 4,148,944 36,077,978 2,923
2014 -- 30,897,605 -- 6,255,000 3,946,308 41,098,913 3,329
2015 -- 28,101,157 -- 5,955,000 3,736,933 37,793,090 2,961
2016 -- 24,969,498 -- 9,135,000 167,484 34,271,982 2,659
2017 -- 21,731,237 -- 8,464,278 143,485 30,339,000 2,347
2018 -- 21,532,747 -- 5,296,354 -- 26,829,101 2,082
2019 -- 17,833,939 944,242 4,578,783 -- 23,356,964 1,818
2020 -- 13,980,120 475,657 4,207,301 -- 18,663,078 1,453
Governmental Activities
VILLAGE OF KEY BISCAYNE, FLORIDA
RATIOS OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
Business-type
Activities
88
VILLAGE OF KEY BISCAYNE, FLORIDA
RATIOS OF GENERAL BONDED DEBT OUTSTANDING
LAST TEN FISCAL YEARS
The Village does not have general obligation debt.
89
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 14,455,777$ 100.00% 14,455,777$
Overlapping debt:
Miami-Dade County 2,070,235,000 2.69% 55,744,334
Miami-Dade County School Board 885,249,000 2.45% 21,664,158
Subtotal, Overlapping Debt 77,408,492
Total Direct and Overlapping Debt 91,864,269$
(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.
2020
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.
90
Fiscal Year Less: Less: Net
Ended Total Ad Valorem Restricted Available
September 30, Revenues Revenues Revenues Revenues Principal Interest Coverage
2011 27,500,700$ (16,646,040)$ (2,096,175)$ 8,758,485$ 2,348,506$ 1,520,433$ 2.26
2012 28,534,272 (16,985,109) (2,669,771) 8,879,392 2,436,139 828,393 2.72
2013 31,425,342 (17,499,835) (3,258,285) 10,667,222 2,531,116 913,409 3.10
2014 28,534,272 (16,985,109) (2,405,825) 9,143,338 2,716,772 875,949 2.54
2015 39,036,983 (19,353,288) (10,432,983) 9,250,712 2,920,699 973,012 2.38
2016 34,717,579 (22,249,642) (2,870,760) 9,597,177 3,294,521 822,575 2.33
2017 35,073,278 (24,202,255) (1,175,772) 9,695,251 3,459,733 777,099 2.29
2018 38,198,588 (24,742,737) (2,176,209) 11,279,642 3,771,867 726,658 2.51
2019 36,826,212 (25,146,639) (2,105,221) 9,574,352 4,183,733 681,407 1.97
2020 38,189,898 (25,276,850) (2,668,172) 10,244,876 4,264,048 484,803 2.16
Source: Village of Key Biscayne Finance Department.
VILLAGE OF KEY BISCAYNE, FLORIDA
PLEDGED REVENUE COVERAGE
LAST TEN FISCAL YEARS
Debt Service
91
Median Per Capita
Household Personal Unemployment
Year Population (1) Income (1) Income (1) Rate (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%
2019 12,846 134,626 78,678 3.3%
2020 12,846 * 162,579 ** 83,607 ** 7.4%
Sources:
(1) City-data.com; *Bureau of Economic & Business Research, University of Florida.
* Current year figure not available
** Environmental Systems Research Institute estimates for 2020
(2) United States Bureau of Labor Statistics
VILLAGE OF KEY BISCAYNE, FLORIDA
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN FISCAL YEARS
92
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. 142 2 not known 250 2 not known
Village of Key Biscayne 130 3 not known 114 3 not known
All remaining employers are of an extremely
small number
Total 1,772 1,864
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
2020 2011
CURRENT YEAR AND NINE YEARS AGO
93
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Number of Employees
General government 7 7 7 7 9 10 10 10 12 13
Public safety 68 69 74 74 77 84 87 87 87 88
Building, planning and zoning 13 15 17 17 14 14 16 16 14 12
Public works 4 4 4 4 5 4 5 5 6 6
Parks and recreation 10 10 12 10 9 11 11 12 11 11
Total Number of Employees 102 105 114 112 114 123 129 130 130 130
Source: Village of Key Biscayne Finance
VILLAGE OF KEY BISCAYNE, FLORIDA
FULL-TIME EQUIVALENT VILLAGE GOVERNMENT EMPLOYEES BY FUNCTION
LAST TEN FISCAL YEARS
94
Function/Program 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Public safety:
Police:
Police personnel 30 30 33 34 36 45 47 47 47 47
Police calls for service 37,646 31,214 26,836 24,556 30,475 29,427 32,031 30,927 23,608 16,991
Parking violations 563 638 676 440 506 552 2,287 400 374 167
Traffic violations 1,269 1,542 1,875 846 939 956 1,531 986 1,468 701
Fire:
Fire personnel 38 39 41 40 41 39 39 40 40 40
Fire incidents 1,841 1,369 1,896 1,763 1,490 1,908 1,529 1,884 1,650 1,651
Fire inspections performed 469 323 469 739 667 770 995 991 1,150 836
Planning and development:
Building permits issued 3,723 3,402 3,885 3,876 3,684 3,501 3,746 2,935 2,658 1,688
Business tax receipts issued 1,165 1,187 937 987 1,097 1,219 1,088 1,896 1,356 872
Inspections conducted (1) -- -- -- -- -- 13,726 11,740 12,225 10,890 6,960
Lien searches issued (1)-- -- -- -- -- 422 352 458 425 465
Culture and recreation:
Number of building users 4,127 4,338 4,251 4,041 4,110 4,179 4,274 4,693 3,728 371
Solid waste:
Residential accounts 1,292 1,264 1,254 1,250 1,272 1,260 1,251 1,341 1,280 1,284
Notes: (1) Data not available prior to FY 2016
Sources: Various Village
LAST TEN FISCAL YEARS
OPERATING INDICATORS BY FUNCTION/PROGRAM
VILLAGE OF KEY BISCAYNE, FLORIDA
95
Function/Program 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
General government:
Number of general government buildings 1 1 1 1 111111
Public safety:
Police:
Police stations 1 1 1 1 111111
Patrol units/divisions 3 3 3 3 333333
Fire:
Fire stations 1 1 1 1 111111
Transportation:
Miles of streets 22 22 22 22 22 22 22 24.8 24.8 24.8
Number of street lights 300 300 300 300 300 300 300 300 300 300
Number of traffic signals 4 4 4 4 444666
Culture and recreation:
Parks 3 3 3 3 344446
Parks acreage 9 9 9 9 9 10 10 14.5 14.5 15.15
Community center 1 1 1 1 111111
Swimming pools 1 1 1 1 111111
Sources: Various Village Departments.
VILLAGE OF KEY BISCAYNE, FLORIDA
CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
96
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
97
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
To the Honorable Mayor, Village Council and Interim 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 accompanying
financial statements of the governmental activities, the business-type activities and each major
fund of the Village of Key Biscayne, Florida (the Village), as of and for the fiscal year ended
September 30, 2020, and the related notes to the financial statements, which collectively
comprise the Village’s basic financial statements, and have issued our report thereon dated
March 26, 2021.
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) as a basis for designing 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.
Our consideration of internal control was for the limited purpose described in the preceding
paragraph and was not designed to identify all deficiencies in internal control that might be
material weaknesses or significant deficiencies and therefore, material weaknesses or significant
deficiencies may exist that were not identified. However, as described in the accompanying
schedule of findings and questioned costs, we did identify certain deficiencies in internal control
that we consider to be a material weakness and significant deficiencies.
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. We consider the deficiency described in
the accompanying schedule of findings and responses as item MW2019-001 to be a material
weakness.
MARCUM
ACCOUNTANTS • ADVISORS
Ill
MARCUM GROUP
MEMBER
98
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. We consider the deficiencies described in the accompanying schedule of
findings and responses as items SD2019-002, SD2020-001, and SD2020-002 to be significant
deficiencies.
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 financial statements. 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 is required to be reported under Government Auditing Standards.
Village Management’s Response to Finding
The Village management’s response to the findings identified in our audit are described in the
accompanying schedule of findings and questioned costs. The Village’s responses were not
subjected to the auditing procedures applied in the audit of the financial statements and,
accordingly, we express no opinion on it.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and
compliance and the result of that testing, and not to provide an opinion on the effectiveness of
the Village’s internal control or on compliance. This report is an integral part of an audit
performed in accordance with Government Auditing Standards in considering the Village’s
internal control and compliance. Accordingly, this communication is not suitable for any other
purpose.
Miami, FL
March 26, 2021
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 AUDITORS’ REPORT ON COMPLIANCE FOR EACH MAJOR
FEDERAL PROGRAM AND STATE PROJECT AND REPORT ON INTERNAL
CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE AND
CHAPTER 10.550, RULES OF THE AUDITOR GENERAL
To the Honorable Mayor, Village Council and Interim Village Manager
Village of Key Biscayne, Florida
Report on Compliance for the Major Federal Program and Major State Project
We have audited the Village of Key Biscayne, Florida’s (the Village) compliance with the types
of compliance requirements described in the OMB Compliance Supplement, and the
requirements described in the State of Florida Department of Financial Services’ State Projects
Compliance Supplement, that could have a direct and material effect on the Village’s major
federal program and state project for the fiscal year ended September 30, 2020. The Village’s
major federal program and state project are identified in the summary of auditor’s results section
of the accompanying schedule of findings and questioned costs.
Management’s Responsibility
Management is responsible for compliance with federal and state statutes, regulations, and the
terms and conditions of its federal awards and state projects applicable to its federal programs
and state projects.
Auditors’ Responsibility
Our responsibility is to express an opinion on compliance for the Village’s major federal
program and its state project based on our audit of the types of compliance requirements referred
to above. We conducted our audit of compliance 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; the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform
Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards
(Uniform Guidance) and Chapter 10.550, Rules of the Auditor General. Those standards, the
Uniform Guidance, and Chapter 10.550, Rules of the Auditor General, require that we plan and
perform the audit to obtain reasonable assurance about whether noncompliance with the types of
compliance requirements referred to above that could have a direct and material effect on a
major federal program or state project occurred. An audit includes examining, on a test basis,
evidence about the Village’s compliance with those requirements and performing such other
procedures as we considered necessary in the circumstances.
We believe that our audit provides a reasonable basis for our opinion on compliance for its major
federal program and major state project. However, our audit does not provide a legal
determination of the Village’s compliance.
MARCUM
ACCOUNTANTS • ADVISORS
Ill
MARCUM GROUP
MEMBER
100
Opinion on the Major Federal Program and Major State Project
In our opinion, the Village complied, in all material respects, with the types of compliance
requirements referred to above that could have a direct and material effect on its major federal
program and its major state project for the fiscal year ended September 30, 2020.
Report on Internal Control Over Compliance
Management of the Village is responsible for establishing and maintaining effective internal
control over compliance with the types of compliance requirements referred to above. In
planning and performing our audit of compliance, we considered the Village’s internal control
over compliance with the types of requirements that could have a direct and material effect on
each major federal program or state project as a basis for designing the auditing procedures that
are appropriate in the circumstances for the purpose of expressing an opinion on compliance for
the major federal program and major state project and to test and report on internal control over
compliance in accordance with the Uniform Guidance and Chapter 10.550, Rules of the Auditor
General, but not for the purpose of expressing an opinion on the effectiveness of internal control
over compliance. Accordingly, we do not express an opinion on the effectiveness of the
Village’s internal control over compliance.
A deficiency in internal control over compliance exists when the design or operation of a control
over compliance does not allow management or employees, in the normal course of performing
their assigned functions, to prevent, or detect and correct, noncompliance with a type of
compliance requirement of a federal program or state project on a timely basis. A material
weakness in internal control over compliance is a deficiency, or combination of deficiencies, in
internal control over compliance, such that there is a reasonable possibility that material
noncompliance with a type of compliance requirement of a federal program or state project will
not be prevented, or detected and corrected, on a timely basis. A significant deficiency in
internal control over compliance is a deficiency, or a combination of deficiencies, in internal
control over compliance with a type of compliance requirement of a federal program or state
project that is less severe than a material weakness in internal control over compliance, yet
important enough to merit attention by those charged with governance.
Our consideration of internal control over compliance was for the limited purpose described in
the first paragraph of this section and was not designed to identify all deficiencies in internal
control over compliance that might be material weaknesses or significant deficiencies. We did
not identify any deficiencies in internal control over compliance that we consider to be material
weaknesses. However, material weaknesses may exist that have not been identified.
The purpose of this report on internal control over compliance is solely to describe the scope of
our testing of internal control over compliance and the results of that testing based on the
requirements of the Uniform Guidance and Chapter 10.550, Rules of the Auditor General.
Accordingly, this report is not suitable for any other purpose.
Miami, FL
March 26, 2021
CFDA/
CFSA Contract/ Pass Through Funds
Number Grant No. to Subrecipients Expended
FEDERAL
United States Department of Homeland Security
Indirect Programs:
Passed through State of Florida, Division of Emergency Management
Disaster Relief Funding, Hurricane Irma 97.036 Z1132 --$ 1,455,421$
Disaster Relief Funding, Hurricane Dorian 97.036 N/A -- 11,141
Total United States Department of Homeland Security -- 1,466,562
United States Department of Treasury
Coronavirus Relief Fund 21.019 N/A -- 9,333
Total United States Department of Treasury -- 9,333
United States Department of Transportation
Passed through Florida Department of Transportation
Highway Planning and Construction Cluster - Safe Routes to School 20.205 GOG74 -- 58,842
Highway Planning and Construction Cluster - Adaptive Signalization 20.205 GOU57 -- 23,034
Total United States Department of Transportation (Cluster)-- 81,876
Total Expenditures of Federal Awards --$ 1,557,771$
STATE
Florida Department of Environmental Protection
37.003 18DA2 & 19DA5 -- 830,985
Total Florida Department of Environmental Protection -- 830,985
Total Expenditures of State Financial Assistance --$ 830,985$
Total Expenditures of Federal Awards and State Financial Assistance --$ 2,388,756$
VILLAGE OF KEY BISCAYNE
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
AND STATE FINANCIAL ASSISTANCE
Beach Nourishment
Indirect Program:
Passed through Florida Housing Finance Corporation
Indirect Programs:
Federal Program/State Project
Federal/State Agency, Pass-through Entity,
Direct Program:
See accompanying notes to Schedule of Federal Awards and State Financial Assistance.
101
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
AND STATE FINANCIAL ASSISTANCE
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
102
NOTE 1 – BASIS OF PRESENTATION
The accompanying schedule of expenditures of federal awards and state financial assistance
(the Schedule) includes the federal and state grant activity of the Village of Key Biscayne,
Florida (the Village) under programs of the federal government and the State of Florida for
the fiscal year ended September 30, 2020. The information in this Schedule is presented in
accordance with the requirements of Title 2 U.S. Code of Federal Regulations, Part 200,
Uniform Administrative Requirements, Cost Principles, and Audit Requirements for
Federal Awards (Uniform Guidance), and Chapter 10.550, Rules of the Auditor General of
the State of Florida. Because the Schedule presents only a selected portion of the
operations of the Village, it is not intended to and does not present the financial position,
changes in net position/fund balance or cash flows of the Village.
NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Expenditures reported on the Schedule are reported on the accrual basis of accounting.
Such expenditures are recognized following the cost principles contained in the Uniform
Guidance and the Florida Single Audit, wherein certain types of expenditures are not
allowable or are limited as to reimbursement.
NOTE 3 – INDIRECT COST RATE
The Village has not elected to use the 10-percent de minimis indirect cost rate allowed
under the Uniform Guidance.
VILLAGE OF KEY BISCAYNE, FLORIDA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
103
SECTION I – SUMMARY OF AUDITORS’ RESULTS
Financial Statements
Type of auditors’ report issued on whether the financial
statements audited were prepared in accordance with GAAP: Unmodified Opinion
Internal control over financial reporting:
Material weakness(es) identified? X Yes No
Significant deficiency(ies) identified? X Yes None reported
Non-compliance material to financial statements noted? Yes X No
Federal Awards and State Project
Internal control over major programs:
Material weakness(es) identified? Yes X No
Significant deficiency(ies) identified? Yes X None reported
Type of auditors’ report issued on compliance for
major programs:
Unmodified Opinion
Any audit findings disclosed that are required to be
reported in accordance with CFR 200.516(a)
or Chapter 10.557, Rules of the Auditor General?
Yes
X
No
Identification of major program/project:
Federal Program or Cluster CFDA No.
Division of Emergency Management –
Disaster Relief Funding, Hurricane Irma and Dorian
97.036
State Project CSFA No.
Beach Nourishment Grant 37.003
Dollar threshold used to distinguish between Type A and
Type B programs – Federal $750,000
Dollar threshold used to distinguish between Type A and
Type B projects – State $750,000
Auditee qualified as low-risk auditee pursuant to the
Uniform Guidance?
Yes
X
No
VILLAGE OF KEY BISCAYNE, FLORIDA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
104
SECTION II – FINANCIAL STATEMENT FINDINGS
MATERIAL WEAKNESS
MW2019-001 – INADEQUATE CONTROLS OVER FINANCIAL CLOSING AND REPORTING –
PENSION TRUST FUND (REPEAT FINDING)
Criteria
Prudent financial reporting practices for the Village of Key Biscayne Police Officers and
Firefighters Retirement Plan (the Plan) reporting include having a process in place for a timely
and accurate financial reporting as this is a critical fiduciary responsibility.
Condition
During the commencement of the audit, the auditor faced delayed receipt of audit requested
schedules and financial reports related to the Plan. Upon investigation and performance of audit
procedures, the auditor noted the Plans annual financial closing process was inaccurate and
incomplete. As a result, the auditor proposed seven (7) audit adjusting entries and prepared
schedules that Plan’s plan administrator should have prepared but was unable to provide.
Substantially all of the entries were to correct bookkeeping errors or to propose accruals and
other adjustments that should have been made by the Plan. The cumulative amount of the audit
adjustments were material to the financial statements. The relevant issues encountered by the
auditor were as follows:
1. Trial balance received by the auditor included the incorrect opening Net Position Balance
and was not reflective of DROP investment activity, Share investment activity, and
current-year activity related to the Plans Deferred Inflow of Resources general ledger
account.
2. Trial balance provided by the Plan administrator did not properly reflect the Plan’s
accounts receivable as of September 30, 2020.
3. Trial balance provided by the Plan administrator did not properly reflect the Plan’s
accounts payable as of September 30, 2020.
4. As a result of audit procedures performed, Marcum noted 2 DROP participants were
enrolled more than 12 months subsequent to their DROP entry date.
Cause
Inadequate internal controls over reconciliation of participant accounts and the Plan’s financial
closing and reporting process. Lack of understanding of the technical aspects of the Plan’s
financial reporting.
VILLAGE OF KEY BISCAYNE, FLORIDA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
105
MATERIAL WEAKNESS (CONTINUED)
MW2019-001 – INADEQUATE CONTROLS OVER FINANCIAL CLOSING AND REPORTING –
PENSION TRUST FUND (CONTINUED)
Effect
Due to inadequate controls and established processes, the pension administrator was not able to
completely close and reconcile the Plan’s financial records. As result, there were delays in
producing closing entries, the Plan’s trial balance, schedules, account reconciliations, and other
financial reports needed by management and the auditors. In addition, the Plan required
significant assistance from the auditors in reconciling the trial balance required investment
financial statement disclosures necessary to meet the reporting requirements set forth by U.S.
generally accepted accounting principles and the actuary requested information to complete the
Plan’s GASB Statement No. 67, Financial Reporting for Pension Plans, report for the fiscal year
ended September 30, 2020.
Recommendation
We recommend the Plan enhance its internal controls over the Plan’s financial closing and
reporting process. This can be accomplished by preparing a quarterly-end closing schedule
which includes all tasks that are necessary to close the month-end. Such a list should include, at
a minimum, the following: the month-end period; a list of month-end tasks (for example,
reconcile custodial statements, post sub-ledger balances to the general ledger, prepare accrual
journal entries, reconcile DROP and Share participant accounts, etc. and the due date of each
task). Such a closing schedule will have to be expanded accordingly for the Plans year-end. Also,
to be effective, the schedule should be updated on a regular basis as situations change. Due dates
should be monitored by the Plan’s Board of Trustee’s to determine that they are being met.
In addition, the Plan’s Board of Trustees should engage a Plan administrator who is more
familiar with GASB requirements and governmental single-employer defined benefit pension
plans. As part of the process, the Board should identify the responsible party to reconcile the
Plan’s annual GASB Statements No. 40 and No. 72 schedules.
View of Responsible Official and Planned Corrective Action
See accompanying corrective action plan.
VILLAGE OF KEY BISCAYNE, FLORIDA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
106
SIGNIFICANT DEFICIENCIES
SD2019-002 – EVIDENCE OF TIMELY PREPARATION AND REVIEW OF BANK RECONCILIATIONS
Criteria
Prudent control practices for the cash receipts and disbursements financial cycles of the Village
include having a process in place for timely preparation and review of the monthly bank
reconciliations. The Village’s internal policy/practice is to prepare the bank reconciliations
within 45 days after month end.
Condition
During our procedures over Village cash accounts, we selected six (6) months during the year
and noted that evidence could not be provided for the timely preparation and review of bank
reconciliations (i.e. the bank reconciliations were not dated).
Cause
Inadequate documentation of internal controls over the policies and procedures for timely
preparation and review of bank reconciliations.
Effect
Although none identified, potential effects of this condition may result in failure to timely detect
loss or misuse of funds.
Recommendation
We recommend the Village maintain support for the Finance Director’s review of the monthly
bank reconciliations, in a timely manner within the Village’s internal policy/practice by dating
the bank reconciliations on the date of preparation and review.
View of Responsible Official and Planned Corrective Action
See accompanying corrective action plan.
VILLAGE OF KEY BISCAYNE, FLORIDA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
107
SIGNIFICANT DEFICIENCIES (CONTINUED)
SD2020-001 – INTERNAL CONTROLS OVER THE PREPARATION OF THE SCHEDULE OF FEDERAL
AWARDS AND STATE FINANCIAL ASSISTANCE
Criteria
The Florida Single Audit Act requires that the schedule of expenditures of state financial
assistance (SESFA) be completed and accurately prepared in accordance with section 215.97(2j)
of the Florida Statutes.
Condition
During the 2020 audit, the Village provided the auditor an initial SESFA which did not properly
report the beach nourishment state grant. The State Projects Compliance Supplement requires
the Village to have internal controls in place to identify and properly report state financial
assistance.
Cause
Lack of adequate internal controls over the preparation and review of the SESFA as well as
awareness of which programs are subject to the Florida Single Audit Act.
Effect
The total expenditures reported in the Village’s initial SESFA were understated by
approximately $831,000 (CSFA 37.003) due to the beach nourishment grant related to the
Florida Department of Environment Protection being omitted. This is a matter of omission on the
SESFA and the not an omission of recognizing an expenditure in the general ledger. The
Village’s auditor identified the omission. After providing an updated SESFA, the auditor’s major
state project determination was revised resulting in the Village now being subject to the Florida
Single Audit Act which the Village initially stated that they were not subject to.
Recommendation
Internal controls should be designed to prevent, detect or correct errors or omissions in a timely
manner. The determination of which major state projects will be audited are affected by the
accuracy of the SESFA at the time of audit. Failure to develop internal controls over preparation
and review could jeopardize future state funding to the Village and report its financial
information inaccurately. We recommended that the Village establish policies and procedures,
along with staff training to ensure that the state financial assistance is identified and reported
accurately on the SESFA in accordance with prescribed requirements. This will enable the
Village to make a timely and accurate determination as to whether they are subject to Federal or
Florida Single Audit.
View of Responsible Official and Planned Corrective Action
See accompanying corrective action plan.
VILLAGE OF KEY BISCAYNE, FLORIDA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
108
SIGNIFICANT DEFICIENCIES (CONTINUED)
SD2020-002 - AUTOMATION OF RECORDKEEPING OF COMPENSATED ABSENCES
Criteria
The Village is required to abide by the terms of their collective bargaining agreements relating to
general and public safety employees to ensure that the correct compensation categories are
accrued for in the Village’s compensated absence liability throughout the fiscal year.
Condition
On an ongoing basis the Village tracks overtime, holiday, compensatory time, sick, and vacation
time manually on a separate electronic spreadsheet. Activity is keyed into an Excel spreadsheet
by the responsible payroll employee, which is then reviewed by the payroll specialist at the time
payroll is prepared on a bi-weekly basis. The review process at fiscal year end did not include
review of the Village’s collective bargaining agreements or recalculation of amounts on Excel
spreadsheet to ensure completeness and accuracy.
Cause
Inadequate internal controls over review and reporting of compensated absences liability
throughout the fiscal year.
Effect
Due to the manual tracking of compensated absences in Excel, Marcum noted several errors
across the selections of employees tested, including:
A. Clerical errors in which the Excel spreadsheet did not correctly add earned hours to the
available balance or reduce the available balance by hours used.
B. Clerical errors in which the Excel spreadsheet did not accurately reflect the available
hours available for employees and contained incorrect carry-forward balances (either
over or under represented).
C. As a result of incorrect beginning balances, adjustments were made to employees "hours
used" in an attempt to arrive at the correct ending balance as of September 30, 2020
which resulted in variances in hours utilized for the fiscal year.
D. As a result of decentralized manual reporting, the Village underreported holiday and
compensatory time by approximately $477,000 as of September 30, 2019 which was
corrected in fiscal year 2020.
VILLAGE OF KEY BISCAYNE, FLORIDA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
109
SIGNIFICANT DEFICIENCIES (CONTINUED)
SD2020-002 - AUTOMATION OF RECORDKEEPING OF COMPENSATED ABSENCES (CONTINUED)
Recommendation
We recommend that the Village analyze their current payroll software to determine if the
software has the capability of recordkeeping on a real-time basis the accumulation of
compensated absences, if not, consider other available software designed for this purpose.
Automation would eliminate the redundant keying now being done to accumulate total hours by
employee, thus saving time and reducing the potential for errors that may occur on a manual
spreadsheet as well as eliminate decentralized reporting. We also recommend the Village adopt
a formal policy to establish proper internal controls over the review and approval process
relating to compensated absences.
View of Responsible Official and Planned Corrective Action
See accompanying corrective action plan.
VILLAGE OF KEY BISCAYNE, FLORIDA
SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
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I. PRIOR YEAR FINANCIAL STATEMENT FINDINGS
MATERIAL WEAKNESS
MW2019-001 – Inadequate Controls Over Financial Closing And Reporting - Pension Trust
Fund finding was repeated in the current year.
SIGNIFICANT DEFICIENCIES
SD2019-002 – Evidence of Review of Bank Reconciliations finding was repeated in the current
year.
SD2019-003 – Internal Controls Over Reporting of Capital Assets finding was not repeated in
the current year.
NONCOMPLIANCE
2019-004 – Noncompliance with Share Plan Document finding was not repeated in the current
year.
II. PRIOR YEAR FEDERAL AWARDS AND STATE PROJECTS FINDINGS AND
QUESTIONED COSTS
None.
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
111
MANAGEMENT LETTER IN ACCORDANCE WITH THE RULES OF THE
AUDITOR GENERAL OF THE STATE OF FLORIDA
To the Honorable Mayor, Village Council and Interim 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, 2020, and have issued our report thereon dated March
26, 2021.
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; the audit requirements of Title 2
U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost
Principles, and Audit Requirements of Federal Awards (Uniform Guidance); 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
on Compliance and Other Matters Based on an Audit of the Financial Statements Performed in
Accordance with Government Auditing Standards; Independent Auditors’ Report on Compliance
for Each Major Federal Program and State Project and Report on Internal Control over
Compliance Required by the Uniform Guidance and Chapter 10.550, Rules of the Auditor
General; Schedule of Findings and Questioned Costs; Summary Schedule of Prior Audit Findings;
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 and schedules, which are dated
March 26, 2021, should be considered in conjunction with this management letter.
Prior Audit Findings
Section 10.554(1)(i)1., Rules of the Auditor General, requires that we determine whether or not
corrective actions have been taken to address findings and recommendations made in the preceding
annual financial audit report. The status of audit findings and recommendations made in the
preceding annual financial audit report have been addressed in the summary schedule of prior
audit findings and in Appendix A to this report.
MARCUM
ACCOUNTANTS • ADVISORS
Ill
MARCUM GROUP
MEMBER
112
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.
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.b. 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 one
recommendation identified as MLC 2020-001.
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 have such
findings.
Purpose of this Letter
Our management letter is intended solely for the information and use of the Legislative Auditing
Committee, members of the Florida Senate and the Florida House of Representatives, the Florida
Auditor General, Federal, State, and other granting agencies, the Honorable Mayor, Village Council,
and applicable management, and is not intended to be and should not be used by anyone other than
these specified parties.
Miami, FL
March 26, 2021
VILLAGE OF KEY BISCAYNE, FLORIDA
CURRENT YEAR AND PRIOR YEARS RECOMMENDATIONS
TO IMPROVE FINANCIAL MANAGEMENT
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
113
Observation
Observation Addressed or
Is Still No Longer
No. Observations Relevant Relevant
Current Year
MLC 2020-001 Solid Waste Accounts Receivable
Prior Year
MLC 2019-001
(reported as
SD2020-002 in
fiscal year 2020)
Automation of Recordkeeping of Compensated Absences Repeated
VILLAGE OF KEY BISCAYNE, FLORIDA
CURRENT YEAR AND PRIOR YEARS RECOMMENDATIONS
TO IMPROVE FINANCIAL MANAGEMENT
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
114
MLC 2020-001 – SOLID WASTE ACCOUNTS RECEIVABLE
Criteria
It is best practice for management to continuously adjust the allowance for doubtful accounts
after reviewing the analysis of uncollectible accounts and making appropriate collection efforts,
in order to collect as much as possible and to ensure that the estimated loss from uncollectible
accounts receivable is reflected on the Villages financial records.
Condition
The Village has not been consistent in the placement of liens on properties with past due solid
waste bills.
Cause
Solid waste accounts receivable (gross outstanding billings) increased approximately 50% in the
current year due to the Village’s assessment of interest in accordance with Article IV, Division
1, Section 2-62(b) of the Village of Code of Ordinances. As a result of not imposing liens, the
Village risks that collections for such assessments may not be enforceable pursuant to Chapter
173, Florida Statues.
Effect
Future collections of delinquent solid waste accounts receivable may be jeopardized as a result
of not imposing liens on properties. This may result in the Village having to increase their
allowance for uncollectible accounts or incurring write-offs of solid waste accounts receivables
in future years.
Recommendation
We recommend that the Village apply a consistent process to the placement of liens on
delinquent solid waste accounts to ensure collection of past due amounts.
Management’s Response
Management concurs with the auditor’s recommendation. The Village’s Finance Department is
currently in the process of implementing a process which will provide for timely placement of
liens on properties with delinquent solid waste accounts receivable.
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
115
INDEPENDENT ACCOUNTANTS’ REPORT ON COMPLIANCE PURSUANT TO
SECTION 218.415 FLORIDA STATUTES
To the Honorable Mayor, Village Council and Interim 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, 2020. 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, 2020.
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
March 26, 2021
MARCUM
ACCOUNTANTS • ADVISORS
Ill
tv1ARCUM GROUP
MEMBER
116
88 West McIntyre Street • Suite 210 • Key Biscayne, Florida 33149 • (305) 365-5511 •
MISSION STATEMENT: “TO PROVIDE A SAFE, QUALITY COMMUNITY ENVIRONMENT FOR ALL ISLANDERS THROUGH RESPONSIBLE GOVERNMENT.”
www.keybiscayne.fl.gov
V I L L A G E O F K E Y B I S C A Y N E
CORRECTIVE ACTION PLAN
March 26, 2021
The Village of Key Biscayne respectfully submits the following corrective action plan for the fiscal
year ended September 30, 2020.
MW2019-001 Inadequate Controls Over Financial Closing and Reporting – Pension
Trust Fund
View of Responsible Official and Planned Corrective Action
Management concurs with the auditor’s recommendation. The Village’s Police Officers and
Firefighters Retirement Plan Board of Trustees has been made aware of the material weakness
finding and has hired a new pension administrator to take appropriate action to correct the control
deficiencies.
SD2019-002 Evidence of Timely Preparation and Review of Bank Reconciliations
View of Responsible Official and Planned Corrective Action
Management concurs with the auditor’s recommendation. The Village’s Finance Department has
prepared monthly bank reconciliations throughout the fiscal year and subsequent to year end.
During the reconciliation process, all transactions are reconciled and captured in the general ledger.
Subsequent to year-end, the Finance Department has implemented a documentation process which
will provide evidence of timely completion and review of bank reconciliations by management.
117
88 West McIntyre Street • Suite 210 • Key Biscayne, Florida 33149 • (305) 365-5511 •
MISSION STATEMENT: “TO PROVIDE A SAFE, QUALITY COMMUNITY ENVIRONMENT FOR ALL ISLANDERS THROUGH RESPONSIBLE GOVERNMENT.”
www.keybiscayne.fl.gov
SD2020-001 Internal Controls over the preparation of the Schedule of Federal Awards
and State Financial Assistance
View of Responsible Officials and Planned Corrective Action
Management agrees with the auditor’s comments regarding the preparation of the SESFA. The
Village’s Finance Director and Comptroller (personnel involve in the documentation, preparation,
and reporting of the SESFA) will participate in adequate training related to Uniform Guidance
reporting requirements during fiscal year 2021. Management does not expect for this deficiency
being reported to be repeated in future years.
SD 2020-002 Automation of Recordkeeping of Compensated Absences
View of Responsible Official and Planned Corrective Action
Management concurs with the auditor’s recommendation. Village management has completed the
implementation of Phase I of a time and attendance module with its current payroll system
platform. Phase II of the implementation, which will take place within fiscal year 2021, will allow
for real-time recordkeeping of compensated absences balances. Management believe
implementation of Phase II will address the auditor’s recommendation.