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HomeMy Public PortalAboutComprehensive Annual Financial Report Fiscal Year Ended 09-30-94.tif6.4 wan I- L IL MA 7 VILLAGE OF KEY BISCAYNE, FLORIDA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED SEPTEMBER 30 1994 Prepared by THE FINANCE DEPARTMENT VILLAGE OF KEY BISCAYNE, FLORIDA COUNCIL - MANAGER FORM OF GOVERNMENT VILLAGE COUNCIL John F Festa, Mayor 6 - PST Mortimer Fried, Councilman Raul Llorente, Councilman Joe I Rasco, Vice Mayor Betty Q Sime, Councilman Raymond P Sullivan, Councilman John Waid, Councilman VILLAGE MANAGER C Samuel Kissinger VILLAGE CLERK Guido H Inguanzo, Jr VILLAGE ATTORNEY Weiss, Serota & Helfman, P A FINANCE DIRECTOR Jack Neustadt INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS RACEILIN COREN & HOLTZ 1 THIS PAGE INTENTIONALLY LEFT BLANK 0 0 E U E E E.J 0 U E E L L i E Agi I VILLAGE OF KEY BISCAYNE FLORIDA Comprehensive Annual Financial Report Fiscal Year Ended September 30 1994 Table of Contents Page I INTRODUCTORY SECTION Letter of Transmittal i Certificate of Achievement ix Village of Key Biscayne Organization Chart x L II FINANCIAL SECTION INDEPENDENT AUDITOR S REPORT GENERAL PURPOSE FINANCIAL STATEMENTS (COMBINED STATEMENTS OVERVIEW) 1 Combined Balance Sheet All Fund Types and Account Groups 3 Statement of Revenues Expenditures and Changes in Fund Balance General Fund 4 Statement of Revenues and Expenditures Budget and Actual General Fund 5 Statement of Revenues Expenses and Changes in Retained Earnings Stormwater Utility System 6 Statement of Cash Flows Stormwater Utility System 7 Notes to Financial Statements 9 COMBINING AND INDIVIDUAL FUND AND ACCOUNT GROUPS STATEMENTS AND SCHEDULES GENERAL FUND Comparative Balance Sheets 19 Schedule of Revenues and Expenditures - Budget and Actual 20 F" 1 FIDUCIARY FUND TYPES Combining Balance Sheet Agency Funds 23 Statement of Changes in Assets and Liabilities Deferred Compensation Plan 24 Statement of Changes m Assets and Liabilities Defined Contribution Plan 25 ACCOUNT GROUPS GENERAL FIXED ASSETS ACCOUNT GROUP Schedule of General Fixed Assets By Source 27 Schedule of General Fixed Assets By Function and Activity 28 Schedule of Changes in General Fixed Assets By Function and Activity 29 VILLAGE OF KEY BISCAYNE, FLORIDA Comprehensive Annual Financial Report Fiscal Year Ended September 30 1994 Table of Contents (Continued) Page II FINANCIAL SECTION (Continued) GENERAL LONG TERM DEBT ACCOUNT GROUP Schedule of General Long Term Debt 31 III STATISTICAL SECTION General Government Expenditures by Function 33 General Revenues By Source 34 Property Tax Levies and Collection 35 Assessed Actual Value of Taxable Property 36 Property Value Construction and Bank Deposits 37 Utilities Service Tax Revenue By Source 38 Franchise Revenue By Source 39 Interest Revenue By Source 40 Principal Taxpayers 41 Demographic Statistics 42 Miscellaneous Statistical Data 43 IV SUPPLEMENTARY AUDITOR S REPORTS SECTION Independent Auditor s Report on Internal Control Structure in Accordance With Government Auditing Standards 45 Independent Auditor s Report on Compliance in Accordance With Government Auditing Standards 47 Management Letter 48 Schedule of State Financial Assistance 50 Recommendations to Improve the Village s Administrative and Accounting Controls 51 U 0 k r L r 1 L p. L 1 100 INTRODUCTORY SECTION Village Council John F Pests, Mayor BettySime Vice Mayor Raul Llorente Michele Padovan Hugh T 0 Reilly Raymond P Sullivan John Wald V Uage Manager C Samuel Kiss nger Office of the Village Manager February 7 1995 The Honorable Mayor and Members of the Village Council Village of Key Biscayne Florida The Comprehensive Annual Financial Report of the Village of Key Biscayne for the fiscal year ended September 30 1994 is hereby submitted Responsibility for both the accuracy of the data and the completeness and fairness of the presentation including all disclosures rests with the Village To the best of our knowledge and belief the enclosed data is accurate in all material respects and is reported in a manner designed to fairly present the financial position and results of operations of the various funds and account groups of the Village All disclosures necessary to enable the reader to gam an understanding of the Village's financial activities have been included The Comprehensive Annual Financial Report is presented in four sections The introductory section includes this transmittal letter the Village's organizational chart and a list of principal officials The financial section includes the auditor's report on the financial statements and the individual fund and account group financial statements and schedules The statistical section includes selected financial and demographic information The fourth section contains the Report on Internal Control Structure, the Report on Compliance with Laws and Regulations and the Single Audit Reports submitted by our auditors Government Structure The Village of Key Biscayne was incorporated on June 18 1991 and operates under a Council Manager form of government The Village Council is comprised of the Mayor and six members and is responsible for enacting ordinances resolutions and regulations governing the Village as well as appointing the members of various advisory boards the Village Manager Village Attorney and Village Clerk As Chief Administrative Officer the Village Manager is responsible for enforcing laws and ordinances and appointing and supervising the department heads of the Village L. 85 West McIntyre Street Key Biscayne Florida 33149 (305) 365 5514 Fax (305) 365 8936 MISSION STATEMENT `TO PROVIDE A SAFE QUALITY COMMUNITY ENVIRONMENT FOR ALL ISLANDERS THROUGH RESPONSIBLE GOVERNMENT ECONOMIC CONDITIONS AND OUTLOOK Location Key Biscayne is a barrier island situated between the Atlantic Ocean to the east and Biscayne Bay to the west The island is located just south of Virginia Key a separate island connected to the mainland south of downtown Miami by the Rickenbacker Causeway The 1990 U S Census population was 8 854 and another 4 000 reside on the island seasonally The Village is an incorporated municipality of approximately 1 25 square miles It is located on Key Biscayne and is bordered to the north by Crandon Park a 960 acre park administered by Dade County and to the south by Bill Baggs Cape Florida State Recreation Area, a park of approximately 600 acres Dislocation event and its impact On Monday August 24 1992 Hurricane Andrew hit Key Biscayne making an impact that will be felt for decades A 7 foot storm surge caused flooding of homes schools businesses hotels streets and landscaping Wind did additional damage to structures and vegetation As of September 30 1994 the close of the fiscal year which is the subject of this report virtually all of the work authorized by FEMA has been completed However while most of the applicable funding has been received none of the claims have been finalized After the claims have been finalized and outstanding balances received a three year period commences during which all records must be maintained and available for audit For this reason an appropriate reserve for grant audits has been established to be maintained until the audit period is concluded Mayor Activities During the initial year of incorporation most services were provided by Dade County Property taxes for the year were assessed collected and retained by Dade County The Village advised Dade County as provided in the inter local agreement with the county that the Village Police Department would be activated on March 1 1993 and the Village Fire Rescue Department would be activated on October 1 1993 The Village Council adopted the 1993 94 General Fund Budget on September 27 1993 The Budget provided for an initial debt service payment of principal and interest for a loan to be made in connection with the acquisition of the Village Green park property 11 El d U U 0 U G Yflir- VILLAGE OF KEY BISCAYNE It turned out that the debt service provision was substantially more than needed Subsequently a budget amendment was enacted providing approximately $1 164 000 to 7 fund the purchase of fire rescue equipment and apparatus consisting of a pumper a quint two rescue vehicles and two command vehicles for the Fire Rescue Department FINANCIAL INFORMATION Accountinz System, Internal and Budgetary Control The Village's accounting records for governmental funds operations are maintained on a modified accrual basis with revenues being recorded when available and measurable and expenditures being recorded when the services or goods are received and the liabilities are incurred L. Budgetary control is maintained at the fund level Expenditures that could result in an overextended balance are not released until additional appropriations are made available Internal accounting controls have been designed to provide reasonable but not absolute assurance regarding safeguarding of assets against loss from unauthorized use or disposition and the reliability of financial records for preparing financial statements and 7 maintaining accountability The concept of reasonable assurance recognizes that the cost of control should not exceed the benefits likely to be derived and the evaluation of costs and benefits requires estimates and judgement by management sow All internal control evaluations occur within the above framework We believe the Village's internal accounting controls adequately safeguard assets and provide reasonable assurance of proper recording of financial transactions Renortinz Entity and its Services The Village includes for financial reporting purposes in conformance with National I" Council on Governmental Accounting Statement 3 all funds and account groups that are controlled by or dependent upon the Village Council The Village currently provides services associated with the following departments Building, Zoning and Planning Department, Emergency Services Department, Recreation Department, Finance and Administrative Services Department Office of the Village Clerk and Office of the Village Manager MISSION STATEMENT TO PROVIDE A SAFE QUALITY COMMUNITY ENVIRONMENT FOR ALL ISLANDERS THROUGH RESPONSIBLE GOVERNMENT 1 111 ReportinE Standards The form and content of the Comprehensive Annual Financial Report and the accompanying financial statements and statistical tables were prepared in conformance with standards set forth by 1 Governmental Accounting Standards Board (GASB) 2 Financial Accounting Standards Board (FASB) 3 National Council on Governmental Accounting (NCGA) 4 The Additor General State of Florida 5 The Charter of the Village of Key Biscayne 6 The Government Finance Officers Association of the United States and Canada General Government Functions The General Fund is the general operating fund of the Village General tax revenues and other receipts that are not allocated by law or contractual agreement to some other fund are accounted for in this fund General operating expenditures fixed charges and capital improvement costs not paid through other funds are paid from this fund The amount of revenues from various sources are shown in the following schedule REVENUES Sources FY 1994 FY 1993 Utility Taxes $1,268,428 $1,212,084 Franchise Fees 668,020 625,015 Property Taxes 6,640,045 3,536,480 Intergovernmental 732,196 718,366 Licenses and Permits 246,533 308,676 Charges for Services 97,664 50,057 Impact Fees 382,713 1,100, 000 Donations 21,343 Other 18,000 63,889 Interest 288,978 121,676 FEMA 1,165,864 Hurricane Loss Grant Revenue 240,000 552,749 Grants 25,305 50,000 Gain on Sale of Investments 83.197 Total Revenue $10,607,882 $9,610,196 L U L iv VILLAGE OF KEY BISCAYNE EXPENDITURES (Budgetary Basis) r umed traarto fa, Function General Government Public Works Economic Development Community Development Parks and Recreation Public Safety Hurricane Dept Service Non Departmental Capital Outlay Total Expenditures FY 1994 $620,784 609,932 126,460 403,097 272,158 3,918,351 255,106 227,105 12,758,815* $19,191,808 FY 1993 $495,454 185,257 36,952 406,055 240,794 2,790,379 1,251,264 421,619 237,513 $6,065,287 * Includes purchase of land for the Village Green Park, $9 238 318 Fiduciary Funds Fiduciary Funds are Trust and Agency Funds established for the purpose of accounting for assets held in a trustee capacity or as an agent for individuals pnvate organizations and other government As of September 30 1994 the following were recorded as Fiduciary Funds Trust and Agency Funds A section 401 A money purchase plan is offered by the Village for its employees and was created in accordance with Internal Revenue Code Section 401 The plan managed by independent plan administrators permits employees to defer a portion of their salary until future years The 401 A fund had $546 269 94 in investments for the fiscal year ended September 30 1994 In addition to the 401 A plan employees may contribute to a section 457 plan Employee investments in the section 457 plan as of September 30 1994 were $134 817 46 Cash Manazement The Village had two cash management vehicles in this fiscal year and an investment MISSION STATEMENT TO PROVIDE A SAFE QUALITY COMMUNITY ENVIRONMENT FOR ALL ISLANDERS THROLGH RESPONSIBLE GOVERNMENT V account or money market account in the Key Biscayne Bank under an agreement which provides for overnight investments of both the investment account and the operating account In addition the Village has an investment account with the Florida Local Government Trust Fund administered by the State Board of Administration which as of September 30 1994 had a balance of $5 121 802 This has been the primary cash management vehicle for surplus funds Risk Management The Village is insured with the Florida Municipal Insurance Trust for liability and property coverage and with the Florida Municipal Self Insurance Fund for Workers Compensation coverage The liability limit under the policy is $5 000 000 Enterprise Funds Enterprise Funds are established to finance and account for the acquisition operation and maintenance of facilities and services and the cost of providing these goods and services on a continuing basis is financed through the collection of charges from users For the 1993-94 Fiscal Year the Village Council established a budget for the Stormwater Management Utility Fund The Village is in the process of having the engmeenng firm of Williams Hatfield and Stoner design and prepare plans for the Stormwater Management System General Fixed Assets The General Fixed Assets of the Village are those assets used in the performance of general governmental functions In accordance with generally accepted accounting principles for local governments the Village does not record depreciation on general fixed assets not does it record roads bridges curbs and gutters streets and sidewalks drainage systems and similar assets that are immovable and of value only to the Village Assets are recorded at cost except donations which are recorded at fair market value at the date of receipt As of September 30 1994 the general fixed assets acquired amount to $11 484 601 Major additions for FY 1993 94 are land for the Village Green park $9 238 318 public safety equipment and vehicles $1 566 578 and the public safety complex $554 291 r� U L 6 U T, U w. U Li U U L vi VILLAGE OF KEY BISCAYNE Independent Audit r b r Provisions in the Florida Statues and the Village Charter require an annual audit of the books of account financial records and transactions of all administrative departments of the Village by independent Certified Public Accountants This requirement has been complied with and the auditor's report have been included in this report CERTIFICATE OF ACHIEVEMENT FOR EXCELLENCE IN FINANCIAL REPORTING The Government Finance Officers Association of the United States and Canada (GFOA) awards a Certificate of Achievement for Excellence in Financial Reporting The Certificate of Achievement is the highest form of recognition for excellence in state and local government financial reporting In order to be awarded a Certificate of Achievement a government unit must publish an easily readable and efficiently organized Comprehensive Annual Financial Report whose contents conforms to program standards Such reports must satisfy both generally accepted accounting principles and applicable legal requirements The fiscal 1992 and the fiscal 1993 reports received the Certificate copies of which are included in this report AWARD FOR DISTINGUISHED BUDGET PRESENTATION The Government Finance Officers Associate of the United States and Canada (GFOA) also presented an award for Distinguished Budget Presentation to the Village of Key Biscayne for its annual budget for the fiscal year beginning October 1 1993 In order to receive this award a governmental unit must publish a budget document that meets program criteria as a policy document as an operations guide as a financial plan and as a communications device The award is valid for a period of one year only We believe our current budget continues to conform to program requirements and have submitted it to GFOA to determine its eligibility for another award ACKNOWLEDGEMENTS The preparation of this report could not have been accomplished without the efficient and dedicated services of the staff of the Village MISSION STATEMENT TO PROVIDE A SAFE QUALITY COMMUNITY ENVIRONMENT FOR ALL ISLANDERS THROUGH RESPONSIBLE GOVERNMENT V11 vs o We express our appreciation to all members of the staff who assisted and contributed to the preparation of this report A special vote of thanks and appreciation is also extended to the firm Rachhn and Cohen for their professional approach and high standards in conduct of their independent audit of the Village's financial records and transactions Respectfully submitted CSK/JN/yg P C Samuel Kissinge Village Manager C Tettafra69,12-- Jdck Neustadt Director of Finance and Administrative Services 0 0 0 0 C B L E 0 0 0 Li 0 L E V111 Certificate of Achievement for Excellence in Financial Reporting Presented to E C 7 Village of Key Biscayne, Florida For its Comprehensive Annual Financial Report for the Fiscal Year Ended September 30, 1993 A Certificate of Achievement for Excellence in Financial Reporting is presented by the Government Finance Officers Association of the United States and Canada to government units and public employee retirement systems whose comprehensive annual financial reports (CAFRs) achieve the highest standards in government accounting and financial reporting ix b.„;2,L President yo A, apc.„ Executive Director VILLAGE OF KEY BISCAYNE, FLORIDA ORGANIZATION CHART VOTER VILLAGE COUNCIL LOCAL PLANNING AGENCY VILLAGE CLERK SPECIAL MASTERS VILLAGE MANAGER ADMIN ASSISTANT VILLAGE ATTORNEY DEPARTMENT OF ECONOMIC DEVELOPMENT DEPARTMENT DEPARTMENT OF FINANCE OF BUILDING AND ADMIN ZONING AND SERVICES PLANNING BUSINESS --PROMOTION TOURISM FINANCE/ ACCOUNTING EMPLOYEE BENEFITS BUILDING PLANNING ZONING DEPARTMENT OF EMERGENCY SERVICES CODE ENFORCEMENT FIRE RESCUE SERVICES POLICE DEPARTMENT OF RECREATION SPECIAL EVENTS DEPARTMENT OF PUBLIC WORKS SPORTS ATELECTICS PROGRAMS/ TOURS Adopted by Ordinance 93-6 on April 27 1993 Amended by Ordinance 93 20 on November 23 1993 x VILLAGE ENGINEER CONTRACT ADMIN r FINANCIAL SECTION 7 L INDEPENDENT AUDITOR'S REPORT asssi RACHLIN COHEN & HOLTZ CERTIFIED PLBLIC ACCOUNTANTS & CONSULTANTS A PARTNERSHIP INCLUDING PROFESSIONAL ASSOCIATIONS Independent Auditor s Report Honorable Mayor Village Council and Village Manager Village of Key Biscayne Florida 7 7 F Y.a 7 L. eflk MIN e— L - We have audited the general purpose financial statements of the Village of Key Biscayne Flonda as of September 30 1994 and for the year then ended as listed in the table of contents These general purpose financial statements are the responsibility of the Village s management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit We conducted our audit in accordance with generally accepted auditing standards and 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 general purpose financial statements are free of matenal misstatement An audit includes exammmg on a test basis evidence supporting the amounts and disclosures in the financial statements An audit also includes assessing the accounting principles used and significant estimates made by management as well as evaluating the overall fmancial statement presentation We believe that our audit provides a reasonable basis for our opinion In our opinion the general purpose financial statements referred to above present fairly in all matenal respects the financial position of the Village of Key Biscayne Florida, at September 30 1994 and the results of its operations and cash flows of its enterpnse fund for the year then ended in conformity with generally accepted accounting principles Our audit was conducted for the purpose of forming an opinion on the general purpose financial statements taken as a whole The combining and individual fund and account group financial statements and schedules for the year ended September 30 1994 as listed in the table of contents are presented for purposes of additional analysis and are not a required part of the general purpose financial statements of the Village of Key Biscayne Flonda Such information has been subjected to auditing procedures applied in the audit of the general purpose financial statements and in our opinion is fairly presented in all matenal respects in relation to the general purpose financial statements taken as a whole The information shown in the statistical section as listed in the table of contents has not been subjected to the auditmg procedures applied in the audit of the general purpose financial statements and accordingly we express no opinion thereon ch, %'seg- Coral Gables Flonda February ? 1995 1320 Sdurh Dixie Hwy Penthouse Coral Gables Florida 3146 Dade (305) 667 0412 B award (30 ) 764 7/17 Fax ( 05) 665 7456 M mb M mb fl h Am I 100 South Bisc yne Blvd Suite 1201 Miami Florida 33131 Dade (305) 377 4228 Fax (305) 377 8331 f Summ I tmu iAs fC mfi dP 61 A M mb f th Fl 700 Southeast Third Ave Suite 300 Ft. Lauderdale Florida 3316 Broward (300) 764 7717 Dade (305) 667 0412 Fax (305) 764 7835 I w h ff up D f SEC P a ti t fC £ dP bl p1 S A 515 East Las Olas Blvd Suite 950 Ft. Lauderdale Florida 33301 Broward (300) 525 1040 Fax (305) 020 2004 th gh th w id d h P vate C mp to t P S d r L trAi GENERAL PURPOSE FINANCIAL STATEMENTS (COMBINED STATEMENTS - OVERVIEW) r I r-1 r-1 rR1 Assets and Other Debits Cash and Cash Equivalents Investments At Market Loan Receivable Due From FEMA Due From Other Funds Prepaid Costs Restricted Assets Cash Construction in Progress Accounts Receivable General Fixed Assets Amount to be provided for General Long term Debt Total Assets and Other Debits Liabilities, Fund Balance and Other Credits Llabrhues Accounts Payable and Accrued Expenses w Due to Other Funds Bonds Payable Deferred FEMA Revenue Deferred Rent Deferred Benefits Payable Note Payable FEMA Compensated Absences Payable Interest Payable '1 otal Liabilities VILLAGE OF KEY BISCAYNE, FLORIDA Combined Balance Sheet All Fund Types and Account Groups September 30 1994 (With Comparative Totals for September 30 1993) -d f Governmental Proprietary Fiduciary Totals Fund Type Fund Type Fund Type Account Groups (Memorandum Only) General General General Enterprise Agency Fixed Assets Long Term Debt 1994 1993 $5 727 073 $ $ 671 487 10 600 82 658 150 000 5 877 96 020 $6,061,628 $451 494 106 309 4 650 60,000 622.453 333 754 11 484 601 10,426111 $333,754 $682,087 $11,484601 $10,426j11 L50 000 682 087 150000 682,087 $ $ 5 727 073 671 487 10 600 82 658 150 000 5 877 333 754 96 020 11 484 601 10 426 111 $28,98881 $4 435 374 184 136 91 515 115 410 403 794 1 100 000 480 229 1 8 $ $ 451 494 $ 907 829 150000 115410 9 200 000 9 200 000 106 309 106 309 4 650 9 690 682 087 184 136 1 000 000 1 000 000 1 000 000 226111 226111 60,000 10.426,III 11,880.651 2,323,374 Fund Balance and Other Credits Investment in General Fixed Assets 11 484 601 11 484 601 480 229 Fund balance Reserved for Supplemental Fire Aid 100 000 100 000 Reserved for Future Debt Service 1 060 364 1060 364 1 000000 Reserved for Encumbrances 27 319 27 319 165 565 Reserved For Beach Improvements 21 724 21 724 20 945 Reserved for Beautification of Crandon Blvd 188 463 188 463 1 100 000 Reserved for Recreation Facilities 1 323 133 1323 133 Reserved for Grant Audits 541 024 541 024 541 024 Designated for Police/Fire Equipment and Building 318 967 318 967 367 416 Designated for Stomiwater Construction Project 1 500 000 1500000 Designated for Community Grants Maintenance and Improvements 278,000 278 000 Total Reserved and Designated 3.358994 3.358,994 4,7/5,179 Unreserved Undesignated 80,181 80,181 711,905 Retained Earnings 183754 183,754 Total Fund Balance and Other Credits 5 439 175 183754 11.484.601 17.107,530 5,487,084 Total Liabilities Fund Balance and Other Credits $6,061,628 $333,754 $682,087 $11,484,601 $10,426.111 $28,988,181 $7,810,458 1 See accompanying notes to financial statements VILLAGE OF KEY BISCAYNE, FLORIDA Statement of Revenues Expenditures and Changes in Fund Balance General Fund Fiscal Year Ended September 30 1994 (With Comparative Totals for Fiscal Year Ended September 30 1993) 1994 1993 Revenues Utility Taxes $ 1,268 428 $1 212 084 Franchise Fees 668 020 625 015 Property Taxes 6 640 045 3 536 480 Intergovernmental 732 196 718,366 Licenses and Permits 246,533 308 676 Charges for Services 97 664 50 057 Impact Fees 382 713 1 100 000 Donations 21,343 Other 18 000 63,889 Interest 288 978 12),676 FEMA 1 165,864 Grants 265 305 602 749 Gam on Sale of Investments 83.997 Total Revenues 10,607.882 9.610.196 Expenditures Current General Government 620 784 495 454 Public Works 609 932 185 257 Economic Development 126 460 36 952 Building, Planning & Zoning 403 097 406 055 Parks and Recreation 272 158 240 794 Public Safety 3 918 351 2 742 172 Hurricane 1 251 264 Non Departmental 227 105 421 619 Capital Outlay 12 758 815 120 155 Debt Service Interest 255 106 Total Expenditures 19.191.808 5,899,722 Excess (Deficiency) of Revenues Over Expenditures (8 583 926) 3 710 474 Other Fmancmg Sources (Uses) Bond Proceeds Loan Proceeds from FEMA Transfer out Total Other Financing Sources Excess Revenues and Other Financing Sources Over Expenditures and Other Financing Uses Fund Balance Begmnmg of Year Fund Balance End of Year 9 200 000 (325,671) 8.874.329 1,000 000 1.000.000 290403 4 710 474 5.148.772 438.298 $5,439,175 $5.148.772 See accompanying notes to financial statements 4 II El U 0 El U C U L U VILLAGE OF KEY BISCAYNE, FLORIDA r I Statement of Revenues and Expenditures Budget and Actual Fiscal Year Ended September 30 1994 Revenues Utility Taxes Franchise Fees Property Taxes Intergovernmental Licenses and Permits Charges for Services Impact Fees Donations Other Interest FEMA Grants Total Revenues Expenditures Current General Government Public Works Economic Development Community Development Parks and Recreation Public Safety Non Departmental Capital Outlay Debt Service Interest Total Expenditures Deficiency of Revenues Over Expenditures Other Financing Sources (Uses) Supplemental Appropriation Bond Proceeds Transfer Out Total Other Financing Sources Excess of Revenues and Other Financing Sources Over Expenditures and Other Financmg Uses General Fund Budgetary Variance Basis Favorable Budget Actual (Unfavorable) $ 1 183 000 $ 1 268 428 $ 85 428 625 000 668 020 43 020 6 578 768 6 640 045 61 277 650 998 732 196 81 198 250 990 246 533 (4 457) 55 999 97 664 41 665 382 715 382 713 (2) 1000 (1 000) 18 000 18 000 100 000 288 978 188 978 11 265,305 265,294 9,828,481 10,607,882 779 401 713 172 553 973 155 308 501 217 301 063 4 395 372 536 177 3 985 199 195,000 620 783 609 933 126 460 403 097 342 690 3 923 534 206 736 12 565 223 92 389 (55 960) 28 848 98 120 (41 627) 471 838 329 441 (8 580 024) 255,106 (60,106) 11,336,481 19.053,562 (7,717,081) (1 508,000) (8.445,680) (6,937,680) 1 508 000 1 508 000 9 200 000 (325,671) 8,874,329 (1 508 000) 9 200 000 (325.671) 7,366,329 $ $ 428 649 $ 428,649 rm- See accompanying notes to financial statements 5 VILLAGE OF KEY BISCAYNE, FLORIDA Stormwater Utility System Statement of Revenue Expenses and Changes in Retained Earnings Fiscal Year Ended September 30 1994 (With Comparative Totals for Fiscal Year Ended September 30 1993) Operating Revenue Operating Expenses Engineering Costs Operating Loss Before Transfers Transfers In Net Income (Loss) Retained Earnings (Deficit) Beginning of Year Retained Earnings (Deficit) End of Year 1994 $ 325.671 325 671 (141,917) $183,754 See accompanying notes to financial statements 6 1993 $ 141,917 (141 917) (141 917) $(141,917) 0 E E O. L El 0 L E J C 0 0 0 VILLAGE OF KEY BISCAYNE, FLORIDA Stormwater Utility System Statement of Cash Flows Fiscal Year Ended September 30 1994 (With Comparative Totals for Fiscal Year Ended September 30 1993) E f 7 am. Frei imeema L Operating Loss 1994 $ Adjustments to Reconcile Operating Loss to Net Cash Provided by Operating Activities Increase (Decrease) in Accounts Payable (26 507) Increase in Due to General Fund 34,590 Total Adjustments 8,083 Net Cash Provided by Operating Activities 8,083 Cash Flows from Non Capital Financing Activities Operating Transfers In 325,671 Cash Flows from Capital and Related Financing Activities Construction in Progress (333,754) 1993 Net Increase in Cash Cash Beginning of Year Cash End of Year $ $ See accompanying notes to financial statements 7 $(141,917) 26 507 115.410 141,917 W THIS PAGE INTENTIONALLY LEFT BLANK 11 0 0 0 U U U U 8 r L L 4 NOTES TO FINANCIAL STATEMENTS VILLAGE OF KEY BISCAYNE, FLORIDA Notes to Financial Statements Fiscal Year Ended September 30 1994 A SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES This summary of the Village of Key Biscayne s significant accounting policies is presented to assist the reader in interpreting the general purpose financial statements and other data in this report The policies are considered essential and should be read m conjunction with the accompanying general purpose financial statements The accounting policies of the Village of Key Biscayne conform to Generally Accepted Accounting Principles ( GAAP ) as applied to governmental units This report the accounting systems and classification of accounts conform to standards of the Governmental Accounting Standards Board ( GASB ) which is the accepted standard setting body for establishing governmental accounting and financial reporting principles 1 Financial Reporting Entity The Village of Key Biscayne ( Village ) located m Dade County is a political subdivision of the State of Flonda r eaS The Village which was mcorporated m 1991 operates under a Council Manager form of government Under the initial government six council members and the Mayor were elected by the voters The Village held municipal elections for fiscal year 1993 Effective for fiscal year 1995 each council member will serve a four year term (limited to two consecutive terms) The Mayor will hold office for a two year term (limited to two consecutive terms) The Vice Mayor is appointed by the council and Mayor for a one year term Dunng the absence or incapacity of the Mayor the Vice -Mayor shall have all the powers authority duties and responsibilities of the Mayor The Mayor serves as chairperson of public meetmgs and executes certain documents authorized by charter ordinance or resolution In addition to the general government function the Village provides its residents with public works public safety (police and fire) parks and recreation and budding zoning and planning functions The Village does not provide educational or hospital facilities Those services are provided by the Dade County School Board and Metropolitan Dade County respectively The reporting entity for the accompanying financial statements consist of the funds and account groups required to account for those financial activities which are related to the Village and are controlled by or dependent upon the Village s legislative body the Village Council Control by or dependence on the Village is determmed by one or more of the following financial mterdependency governing authonty designation of management, ability to significantly influence operations and accountability for fiscal matters VILLAGE OF KEY BISCAYNE FLORIDA Notes to Financial Statements (Continued) Fiscal Year Ended September 30 1994 A SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 2 Basis of Presentation - Fund Accounting The Village s accounting systems are organized and operated on the basis of funds and account groups which are the basic fiscal and accounting entitles in governmental accounting A fund is a separate accounting entity with a self -balancing set of accounts An account group is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded m the funds because they do not directly affect net expendable available financial resources The funds and account groups are classified as follows GOVERNMENTAL FUND TYPE The GENERAL FUND is the general operating fund of the City It is used to account for all financial resources except those that are required to be accounted for in specific funds Resources are generated primarily from property taxes local utilities service taxes and franchise fees Expenditures are incurred to provide public safety general government, recreation building planning and zoning and public works services PROPRIETARY FUND TYPE The ENTERPRISE FUND is used to account for operations that are financed and operated in a manner similar to private business enterprises where the intent of the governing body is that the costs (including depreciation) of providing goods or services to the general public on a continuing basis be financed or recovered primarily through users charges The Village s enterprise operation consist solely of a stormwater utility system FIDUCIARY FUND TYPES The AGENCY FUNDS are used to account for assets that the Village maintains on behalf of others as their agent ACCOUNT GROUPS ACCOUNT GROUPS are used to establish accountmg control and accountability over the Village s general fixed assets and long term obligations Accordingly the Village maintains a General Fixed Asset Account Group and a General Long Term Debt Account Group 0 0 0 L X17 C rJ U 10 Pqm L 7 VILLAGE OF KEY BISCAYNE, FLORIDA Notes to Financial Statements (Continued) Fiscal Year Ended September 30 1994 A SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 3 Financial Statement Measurement Focus GOVERNMENTAL FUND TYPE GENERAL FUND This fund is used to account for the Village s expendable financial resources and related current liabilities Measurement focus is upon financial flow and financial position (sources uses and balances of resources) rather than upon net income determmation Only current assets and current liabilities are included on its balance sheet with fund balance representing available spendable resources Basic financial statements necessary to fairly present financial position and operating results for this fund are the Balance Sheet and the Statement of Revenue Expenditures and Changes in Fund Balance PROPRIETARY FUND TYPE ENTERPRISE FUND This fund is used to account for the Village s stormwater utility system Financial activity is reported in essentially the same manner as in commercial accounting where net income and capital maintenance are measured All assets and liabilities (whether current or noncurrent) are included in the financial statements Major outlays for capital assets and improvements are capitalized as projects are constructed Measurement focus is upon determination of net income financial position and cash flows The basic financial statements required for this fund are the Balance Sheet, the Statement of Revenue Expenses and Changes in Retained Earnings and the Statement of Cash Flows FIDUCIARY FUND TYPE AGENCY FUNDS These funds are custodial in nature (assets equal liabilities) and do not involve measurement of results of operations GENERAL FIXED ASSETS ACCOUNT GROUP Fixed assets used in governmental fund type operations are accounted for in the General Fixed Assets Account Group rather than in the governmental funds General fixed assets purchased are initially reported as expenditures in the general find and are capitalized at historical cost or estimated cost if actual historical cost is not available in the general fixed assets account group except for certain infrastructure improvements which mclude streets alleys sidewalks drainage and lighting systems Depreciation is not required and has not been provided on general fixed assets 1 I 11 VILLAGE OF KEY BISCAYNE, FLORIDA Notes to Financial Statements (Continued) Fiscal Year Ended September 30 1994 A SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 3 Financial Statement Measurement Focus (Continued) LONG TERM DEBT ACCOUNT GROUP Noncurrent liabilities that are expected to be financed from governmental funds are excluded from governmental fund financial statements because of the spending measurement focus of such funds Net current assets of governmental funds are not affected by such liabilities therefore these long term amounts are accounted for and reported as liabilities m the General Long Term Debt Account Group The s long term liabilittes that are reported in this manner consist of a note payable to FEMA bonds payable held by Northern Trust Bank and accrued compensated absences of Village employees 4 Basis of Accounting The basis of accounting refers to the timing when revenues and expenditures are recognized in the accounts and reported in the financial statements GOVERNMENTAL AND AGENCY FUND TYPES These funds use the modified accrual basis of accounting Under the modified accrual basis of accounting revenues are recorded when susceptible to accrual i e when both measurable and available Available means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period Generally revenues are recognized when earned except for certain revenue sources which are not susceptible to accrual Revenues in the following categories are considered susceptible to accrual because they are both measurable and available to finance expenditures of the current period Property Taxes Intergovernmental Revenues and Grants Interest Earned The following revenues are not considered susceptible to accrual in the governmental fund because they are not both measurable and available to fmance expenditures of the current period Licenses and Permits Utility Taxes Franchise Fees The Village reports deferred revenues in its balance sheet Deferred revenues arise when a potential revenue does not meet both the measurable and available criteria for recognition m the current period In subsequent periods when both revenue recognition criteria are met the liability for deferred revenue is removed from the balance sheet and revenue is recognized El L U U U U 12 VILLAGE OF KEY BISCAYNE FLORIDA Notes to Fmancial Statements (Continued) Fiscal Year Ended September 30 1994 7 tseame C pwal r -- W. A SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 4 Basis of Accounting (Continued) GOVERNMENTAL AND AGENCY FUND TYPES (Continued) Expenditures are generally recognized when the related liability is incurred Exceptions to this rule are 1) long term portion of accumulated unpaid vacation and sick pay worker s compensation and capital leases are not recognized in the general fund since the amount to be liquidated from available spendable resources is recorded in the General Long Term Debt Account Group 2) pnncipal and interest on general long term debt which is recorded as an expenditure on its due date PROPRIETARY FUND TYPE The Enterprise Fund is accounted for using the accrual basis of accountmg Revenues are recognized when earned and expenses are recognized when incurred 5 Budgets and Budgetary Accounting The Village is legally required to adopt an annual budget for its General Fund Budgets are controlled at the fund level The Village Manager is authorized to transfer budgeted amounts within the departments within any fund Budgets can be amended during the fiscal year by Council adoption of the proposed amendments The budget is prepared on a basis consistent with generally accepted accounting principles There was one supplemental budgetary appropriation totalling $1 508 000 in the current fiscal year 6 Encumbrances Encumbrances are recorded at the time a purchase order or other commitment is entered into Encumbrances outstanding at year end if any represent the estimated amount of expenditures to result if unperformed purchase orders and other commitments at year end are completed Appropriations lapse at year end however the Village generally intends to honor purchase order and other commitments in process As a result, encumbrances outstanding at year end are reported as reservations of fund balance since they do not constitute expenditures or liabilities As of September 30 1994 the following reconciles expenditures reported on a GAAP basis versus budgetary basis Excess Revenue over Expenditures (Budgetary Basis) Prior Year Encumbrances Current Year Encumbrances Excess Revenue over Expenditures (GAAP Basis) $428 649 (165 565) 27319 $290,403 13 VILLAGE OF KEY BISCAYNE, FLORIDA Notes to Financial Statements (Continued) Fiscal Year Ended September 30 1994 A SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Contmued) 7 Deposits and Investments The Village s cash and cash equivalents are considered to be cash on hand and short term mvestments with original maturities of three months or less from the date of acquisition Village administration is authorized to invest in those mstruments authorized by the Florida Statutes 8 Compensated Absences Accumulated unpaid vacation and sick leave is accounted for using the modified accrual basis of accounting Only those amounts estimated to be liquidated with expendable available financial resources are accrued at year end with the balance of the accumulated unpaid vacation and sick leave in the General Long Term Debt Account Group 9 Reserves and Designations Fund balances are reserved to indicate that a portion of fund balance/retained earnmgs is not available for appropriation or is legally segregated for a specific future use The description of each reserve indicates the purpose for which each was intended Designated fund balances indicates that a portion of fund equity has been segregated based on tentative plans of the Village Such plans or intent are subject to change Unreserved undesignated fund balance is the portion of fluid equity available for any lawful use 10 Comparative Data/Reclassifications Certain amounts in the September 30 1993 columns have been reclassified to conform to September 30 1994 presentation Comparative total data for the prior year has been presented in selected sections of the financial statements to provide an understanding of changes in Village s financial position and operations 11 Memorandum Only - Total Columns Total columns on the various statements which are captioned Memorandum Only aggregate the columnar amounts presented by fund type and accountgroup and are presented only to facilitate financial analysis Data in these columns do not present financial position or results of operations in conformity with generally accepted accounting principles, neither is such data comparable to a consolidation Interfund eliminations have not been made in the aggregation of this data t= a Q U U r 1 �tr L U U 14 VILLAGE OF KEY BISCAYNE, FLORIDA Notes to Financial Statements (Continued) Fiscal Year Ended September 30 1994 B DEPOSITS AND INVESTMENTS At September 30 1994 the Village maintained deposits with book balances of $5 727 073 The total balance per bank was $341 363 and the balance of deposits held at the State Board of Administration was $5 736 430 In addition to insurance provided by the Federal Depository Insurance Corporation ('FDIC") all deposits are held in banking institutions approved by the State Treasurer of the State of Florida to hold public Rinds Under Florida Statutes Chapter 280 FlorzdaSecurztyforPubbcDepositsAct the State Treasurer requires all Florida qualified public depositories to deposit with the Treasurer or another banking institution eligible collateral equal to 50% to 125% of the average daily balance for each month of all public deposits in excess of any applicable deposit insurance held The percentage of eligible collateral (generally in the form of U S Government and agency securities state or local government debt, or corporate r. bonds) to public deposits is dependent upon the depository s financial history and its compliance with Chapter 280 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 cash deposits are deemed as insured and are therefore not subject to classification by credit risk category under the provisions of GASB Statement N° 3 Included in the agency funds are investments which are stated at market value and are held by the ICMA Retirement Trust At September 30 1994 the carrying value and market value of these investments was $682 087 C PROPERTY TAXES 6 — Pal l., r I Property values are assessed on a county wide basis by the Metropolitan Dade County Property Appraiser as of January 1 the lien date of each year 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 Property taxes levied each October 1 by the Village and all other taxing authorities within the County are centrally billed and collected by 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 delmquent tax with interest and penalties are sold by Dade County with remittance to the Village for its share of those receipts 15 VILLAGE OF KEY BISCAYNE, FLORIDA Notes to Financial Statements (Continued) Fiscal Year Ended September 30 1994 D FIXED ASSETS The following is a summary of changes in general fixed assets account group during the year Land Buildings Improvements Other Than Buildings Equipment Furniture and Fixtures Total Balance Balance October 1 September 30 1993 Additions Deletions 1994 436 438 43,791 5480.229 $ 9,238 317 $ $ 9 238 317 554,291 554 291 26 608 1 184 837 4,135 $11,008,188 3 816 $3 816 Depreciation is not required and has not been provided on general fixed assets The following is a summary of proprietary fund type fixed assets at September 30 1994 Stormwater Utility System Construction in Progress $333,754 E GENERAL LONG TERM DEBT Changes in general long term debt during the year are summarized as follows Balance Balance October 1 September 30 1993 Additions Deletions 1994 26 608 1 617 459 47,926 511.484,601 Loan from FEMA $1 000 000 $ $ $ 1 000 000 Bonds Payable 9,200 000 9 200 000 Compensated Absences Payable 226,111 226,111 $1,000,000 $9,426111 $ $10,246,111 The Village obtamed a $1 000 000 loan on June 7 1993 form the Federal Emergency Management Agency ('FEMA ) at a rate of 5 68% per year The principal and interest, less amounts that may be canceled pursuant to Section 417 of the Stafford Disaster Relief and Emergency Assistance Act are due on June 7 1998 unless extended at the sole discretion of the lender During the fiscal year ended September 30 1994 the Village issued land acquisition revenue bonds of $9 200 000 the proceeds of which were used for the acquisition of the Village Green property The Village has pledged public service tax revenues to secure payment of the principal and interest on the bonds The bonds are due in annual prmcipal installments ranging from $755 000 in fiscal 1995 to $1 105 000 in fiscal 2004 Interest accrues at 4 36% per annum U tl U U U 16 r r® r 7 E i t VILLAGE OF KEY BISCAYNE, FLORIDA Notes to Financial Statements (Continued) Fiscal Year Ended September 30 1994 E GENERAL LONG TERM DEBT (Continued) The annual requirements to amortize the bonds as of September 30 1994 are as follows Fiscal Year Endmg September 30 Principal Interest Total 1995 $755 000 $ 384 661 $ 1139 661 1996 785 000 351 089 1 136 089 1997 820 000 316 100 1 136 100 1998 855 000 279 585 1 134 585 1999 895 000 241 435 1 136 435 2000 2004 5 090 000 573.340 5.663.340 $9,200,000 $2 146 210 $11,346,210 F LITIGATION, COMMITMENTS AND CONTINGENCIES Litigation The Village is involved in several lawsuits incidental to its operations the outcome of which in the opinion of management, should not have amatenal effect on the financial position of the Village Commitments 1 The Village is obligated under a non cancelable operating lease for office space for a penod of three years commencing March 1 1992 Rent expense was $43 000 for fiscal year 1994 The following is the commitment under the lease Fiscal Year 1995 $18 000 2 In August 1992 the Village entered into an mterlocal agreement with Metropolitan Dade County in order to 1) delmeate the responsibilities for service levels and costs of municipal services to be provided to the Village by the County for the fiscal year 1992 transition year and for future fiscal years and 2) outline the general terms of future lease agreements between the County and the Village concerning specified capital assets Contingent Liability Federal Programs in which the Village participates were audited m accordance with the provisions of U S Office of Management and Budget Circular A 128 Uniform Requirements for Grants to State and Local Government Pursuant to the provisions ofCircular A 128 certain major and non major programs were tested for compliance with applicable grant requirements While no matters of noncompliance were disclosed by audit the Federal Government may subject grant programs to additional compliance tests which may result in disallowed expenditures In the opinion of management, future disallowances of current grant expenditures if any would not have a matenal effect on the Village s financial statements 17 VILLAGE OF KEY BISCAYNE, FLORIDA Notes to Financial Statements (Continued) Fiscal Year Ended September 30 1994 F DEFERRED COMPENSATION PLAN The Village of Key Biscayne established a deferred compensation plan in fiscal year 1993 The plan is voluntary and the Village does not contribute Employees may elect to defer up to 25% of their annual income not to exceed $7 500 annually Deferred compensation deposits are made into the employees' accounts through payroll deductions before income taxes are withheld Contributions by the employees for the fiscal year ended September 30 1994 were $117 785 It is the opinion of the Village that the Village has no liability for losses under the plan but does have the duty of due care that would be required of an ordinary prudent investor The plan assets are the property of the Village subject onlyto the claims of the Village s general creditors Participant rights under the plan are equal to those of general creditors in an amount equal to the fair market value of the deferred account of the participants G DEFINED CONTRIBUTION PLAN The Village of Key Biscayne is a single employer that contributes to the Village of Key Biscayne Money Purchase Plan which is a defined contribution pension plan The plan currently covers all full time employees of the Village Under this plan the Village contributes 11% and the employee contributes 6% Employer contributions for fiscal year ended September 30 1994 were $283 490 while the employee contributions were $152 895 A defined contribution pension plan provides pension benefits in return for services rendered provides an individual account for each participant and specifies how contributions to the individual s account are to be determined instead of specifying the amount of benefits the individual is to receive Under a defined contribution pension plan the benefits a participant s account will receive depends solely on the amount contributed to the participant s account the returns earned on investments on those contributions, and forfeitures of other participants benefits that may be allocated to such participant s account The Village s total payroll and covered payroll for fiscal year 1994 is $2 880 202 The Money Purchase Plan held no securities of the Village or other related parties during the year or as of the close of the fiscal year 18 0 El U U Uc U U U E P Lid r COMBINING AND INDIVIDUAL FUND AND ACCOUNT GROUPS STATEMENTS AND SCHEDULES L whom rmq 9 r r GENERAL FUND r L • The General Fund is the principal fund of the Village and is used to account for resourc- es traditionally associated with governments which are not required to be accounted for in another fund 4 GOVERNMENTAL FUND TYPE • GENERAL FUND F 1 VILLAGE OF KEY BISCAYNE, FLORIDA General Fund Balance Sheet September 30 1994 (With Comparative Totals for September 30 1993) CAW 1994 1993 r� 7 r Assets Cash and Cash Equivalents Accounts Receivable Due from FEMA Due from Other Funds Deposits and Prepaid Costs Restricted Asset Cash Total Assets Liabilities and Fund Balance $5 727 073 4 435 374 96 020 82 658 91 515 150 000 115 410 5 877 403 794 1.100.000 $6.061628 $6,146,093 Liabilities Accounts payable and accrued expenses $ 451 494 $ 881 322 Interest payable 60 000 Deferred FEMA revenue 106 309 106 309 Deferred rent 4 650 9.690 622,453 997.321 Fund Balance Reserved for supplemental fire aid 100 000 Reserved for future debt service 1 060 364 1 000 000 Reserved for encumbrances 27 319 165 565 Reserved for beach improvements 21 724 20 945 Reserved for beautification of Crandon Blvd I88 463 1 100 000 Reserved for recreation facilities 1 323 133 1 100 000 Reserved for grant audits 541 024 541 024 Designated for police/fire equipment and building 318 967 367 416 Designated for stormwater construction project 1 500 000 Designated for community grants maintenance and improvements 278.000 Total Reserved and Designated 5.358,994 4,294,950 Unreserved Undesignated 80,181 853.822 Total Fund Balance 5,439,175 5,148,772 Total Liabilities and Fund Balance $6,061,628 $6,146,093 19 VILLAGE OF KEY BISCAYNE, FLORIDA General Fund Schedule of Revenues and Expenditures (Budgetary Basis) Budget and Actual Fiscal Year Ended September 30 1994 Budget Budgetary Variance Basis Favorable Actual (Unfavorable) Revenues Utility Taxes $1.183,000 $ 1,268,428 $ 85,428 Franchise Fees 625,000 668.020 43.020 Property Taxes 6.578,768 6,640,045 61277 Intergovernmental State Shared Revenue 650,998 732.196 81,198 Licenses and Permits Occupational Licenses 25 000 31 365 6 365 Building Permits 225 000 215 168 (9,832) Other 990 (990) 250.990 246 533 (4,457) Charges for Services 55.999 97 664 41.665 Other Donations 1 000 (1 000) Miscellaneous 18 000 18,000 1000 18.000 17,000 Interest 100.000 288,978 188.978 Impact Fees 382.715 382.713 (2) Grant Revenue Hurricane loss grant revenue 240 000 240 000 Miscellaneous grants 11 25.305 25,294 11 265,305 265.294 Total Revenue $9,828,481 $10.607.882 $779,401 20 VILLAGE OF KEY BISCAYNE FLORIDA General Fund Schedule of Revenues and Expenditures Budget and Actual (Continued) Fiscal Year Ended September 30 1994 Budget Budgetary Variance Basis Favorable Actual (Unfavorable) Expenditures General Government Elected officials $ 15 000 $ 11 019 $ 3 981 Administration 308 395 292 275 16 120 Village clerk 126 777 125 904 873 Village attorney 263 000 191.585 71,415 Total General Government 713,172 620,783 92,389 Public Works 553,973 609 933 (55 960) i r-, Economic Development 155,308 126,460 28,848 '. Buildings Planning & Zoning 501,217 403,097 98.120 L. Parks and Recreation 301,063 342,690 (41,627) 7 Public Safety 4,395,372 3 923,534 471,838 L E Non Departmental 536,177 206,736 329,441 Capital Outlay Public Works Parks and Recreation Public Safety Non Departmental i Debt Service Interest I 1 29 999 303 000 608 000 3,044,200 3.985.199 195.000 172 074 (142 075) 9 259 232 (8 956 232) 530 005 77 995 2,603,912 440,288 12,565,223 (8,580,024) 255,106 (60.106) Total Expenditures $11,336 481 $19,053.562 $7,717,081 21 THIS PAGE INTENTIONALLY LEFT BLANK U 0 i 0 0 E Li U L U 0 U U U U 22 c t FIDUCIARY FUND TYPE • AGENCY FUNDS f ker 4 AGENCY FUNDS • These Funds are used to account for assets held for employees in accordance with the provisions of Internal Revenue Code Sections 401 and 457 1 VILLAGE OF KEY BISCAYNE, FLORIDA Agency Funds Combining Balance Sheet r rcirl I L L vegai 1101814 September 30 1994 (With Comparative Totals for September 30 1993) Deferred Defined Compensation Contribution Plan Plan 1994 1993 Assets Investments at market $135 817 Loan Receivable Liabilities Deferred benefits payable $135,817 $535 670 10,600 $546 270 $671 487 10 600 $682,087 $184 136 $184,136 $135,817 $546,270 $682 087 $184,136 23 Assets Investments at market Liabilities VILLAGE OF KEY BISCAYNE, FLORIDA Deferred Compensation Plan Statement of Changes in Assets and Liabilities Fiscal Year Ended September 30 1994 Balance Balance October 1 September 30 1993 Additions Deletions 1994 $25,647 $118,494 $8324 $135,817 Deferred benefits payable $25,647 $118,494 $8,324 $135,817 11 U Es LI E 0 L U 24 VILLAGE OF KEY BISCAYNE FLORIDA Defined Contribution Plan Statement of Changes in Assets and Liabilities Fiscal Year Ended September 30 1994 Balance Balance October 1 September 30 1993 Additions Deletions 1994 Assets Investments at market $158 489 $436 385 $59 204 $535 670 Loan receivable 10,600 10,600 Total Assets $158,489 $446 985 $ 59,204 $546,270 Liabilities Deferred benefits payable L $158,489 $446,985 $59,204 $546,270 25- E E E 0 E 0 E U' THIS PAGE INTENTIONALLY LEFT BLANK U n Li 26 El E L GENERAL FIXED ASSETS ACCOUNT GROUP E. • To account for fixed assets used for general government purposes VILLAGE OF KEY BISCAYNE FLORIDA Schedule of General Fixed Assets by Source 7 L r September 30 1994 (With Comparative Totals for September 30 1993) 1994 1993 General Fixed Assets Land $9 238 317 $ Buildings 554 291 Improvements other than buildings 26 608 Furniture and fixtures 47 926 43 791 Equipment 1,617,459 436,438 Total General Fixed Assets $11,484,601 $480229 Investment m General Fixed Assets by Source General Fund $11,484,601 $480229 27 VILLAGE OF KEY BISCAYNE, FLORIDA Schedule of General Fixed Assets by Function and Activity September 30 1994 Improvements Furniture Other Than and Land Buildings Buildings Fixtures Equipment Total General Government $ $ $11 299 $39 635 $ 50 881 $ 101 815 Parks and Recreation 9,238 317 9 072 9 247 389 Public Safety 554 291 6,237 8291 1,566,578 2,135,397 $9,238,317 8554,291 $26608 847.926 $1,617;459 $11,484,601 28 L 0 0 0 E 0 0 0 i E ii 0 VILLAGE OF KEY BISCAYNE, FLORIDA Schedule of Changes in General Fixed Assets by Function and Activity Fiscal Year Ended September 30 1994 Balance Balance October 1 September 30 1993 Additions Deletions 1994 General Government $ 65 261 $ 36 778 $ 224 $ 101 815 Parks and Recreation 9 247 389 9 247 389 Public Safety 414,968 1,724,021 3,592 2.135.397 $480.229 $11,008,188 $3,816 $11,484,601 L.. E C P 7 29 i THIS PAGE INTENTIONALLY LEFT BLANK 11 0 1 0 0 E 0 L E L L 0 E 30 L GENERAL LONG-TERM DEBT ACCOUNT GROUP • To account for the Village's long-term obligations 461182. 7 4 VILLAGE OF KEY BISCAYNE, FLORIDA Schedule of General Long Term Debt September 30 1994 { Amount to be Provided for Payment of General Long Term Debt General Long Term Debt Payable Bonds payable Loan from FEMA Compensated absences payable Total General Long Term Debt Payable $10,426,111 9,200 000 1 000 000 226,111 $10,426,111 31 -Si THIS PAGE INTENTIONALLY LEFT BLANK 32 i L Ii 0 E El E 0 E F1 L U U U E €.J U E —roSzAve Statistical Section In VILLAGE OF KEY BISCAYNE, FLORIDA General Government Expenditures by Function (Budgetary Basis) 7 r- 6 Fiscal General Public Parks & Public Year Government Safety Recreation Works Total 1992 $1468 000'» $ 13 511 $ 11 779 $ 86 580 $ 1 579 870 1993 2 848 857(2) 2 790 379 240 794 185 257 6 065 287 1994 4 126 094(') 4 453 539 9 601 922(6) 782 007 19 053 562 (1) Includes $783 280 Hurricane Andrew Expenses to 9/30/92 (2) Includes $1 251 264 Hurricane related expenses 10/01/92 through 9/30/93 (3) General government includes economic development, building planning and zonmg, debt service capital outlay and non departmental expenditures (4) Includes acquisition of land for $9 238 317 for the Village Green a park re' L 33 VILLAGE OF KEY BISCAYNE, FLORIDA General Government Revenues by Source Foal Property Fees and Utility Franchise Year Taxes (1) Licenses Intergovernmental Taxes Fees Other Interest Total 1992 $ $ 15 766 $ 934 018 $ 979 236 $151 392 $ 23 276 $ 4 480 $2 018 168 1993 3 536 480 1 458 733 2 485 979 1 212 084 625 815 169 429 121676 9 610196 1994 6 640 045 629246 997501 1 268 428 668 020 115 664 288 978 10 607 882 a) The Village imposed property taxes for the first time for the 1992 93 fiscal year Note General Fund Only 34 H B E E W LI LI C L LI L [ U E II rRain 7 PRFOA 7 7 P VILLAGE OF KEY BISCAYNE FLORIDA Property Tax Levies and Collections Fiscal Year 1993 and 1994 Tax Fiscal Assessed Tax Total Percent Year (l) Year Value Levy Collected (2) Collected 1992 1993 1 617 141 088 3 687 082 3 536 480 95 9 1993 1994 1 550 057 130 6 925 094 6 640 045 95 9 Assessments as of January 1 of the year listed bills mailed in October of that year taxes become delinquent at the end of April of the subsequent year Initial property tax levy by the Village October 1992 Collections reflect timely payment discounts of up to 4% and other adjustments 35 _Lr VILLAGE OF KEY BISCAYNE, FLORIDA Assessed Value of Taxable Property Net Assessed Fiscal Real Personal Property Year Property Property Value 1992 $1 601 826 518 $15 314 570 $1 617 141 088 1993 1 533 711468 16 345 662 1 550 057 130 1994 1 715 626 471 26 295 113 1 741 921 584 36- C E U Li E U U LT U U 1 L a VILLAGE OF KEY BISCAYNE, FLORIDA Property Value Construction and Bank Deposits IPERA Residential Commercial (000s) Omitted Total Total Fiscal Permits N2 of Ns of of Bank Year Issued Units Valuation Units Valuation Construction Deposits(1) 1992(2) 35 25 $ 638 48., 10 $ 401 058 $ 1 039 541 $20 282 998 1993 1 737 1 633 26 822 424 104 4 383 673 31,206 097 18 146 647 1994 2 205 2 081 25 410 312 124 45 567 390 70 977 702 17 524 140 SOURCE (1) Federal Reserve Bank Atlanta, GA Information is for Metropolitan Dade County which the Village of Key Biscayne is a part of Information is not available for the Village of Key Biscayne alone (2) Village began issuing permits on September 1 1992 E L. r r"' r L 7 37 VILLAGE OF KEY BISCAYNE, FLORIDA Utilities Service Tax Revenue By Source Fiscal Fuel Year Electricity Telecommunications Gas Oil Water Total 1992 $676 919 $157 887 $35 552 $3 548 $105 830 $ 979 736 1993 857 002 199 308 24 184 4 708 126 882 1 212 084 1994 888 752 202 702 26 925 4 331 145 719 1 268 429 38 VILLAGE OF KEY BISCAYNE, FLORIDA Franchise Revenue By Source 440 7 7 Fiscal Year Electricity Cable Television Telephone Total 1992 $112 658 $38 734 1993 570 605 39 821 1994 603 638 43 877 15 389 20 505 $151 392 625 815 668 020 39 -LI VILLAGE OF KEY BISCAYNE, FLORIDA Interest Revenue by Source Fiscal General Year Fund Total 1992 $ 4 480 $ 4 480 1993 121 676 121 676 1994 288 978 288 978 40 li E E E 12 , E U Li E C 0 E 0 E ksiud L F, f L VILLAGE OF KEY BISCAYNE, FLORIDA Principal Taxpayers September 30 1994 Taxpayer % of Total Taxable Assessed Valuation Valuation Key Biscayne Hotel and Villas $ 40 549 101 2 33% Royal Biscayne (Sheraton) 31 320 721 1 8 Biscayne Beach Hotel Association (Sonesta) 14 198 168 87 Finivest Investment Et Al (Key Colony) 8 457 630 54 Femway Builders Inc (Gallena Mall) 5 345 884 54 Picpan Inc 4 965 846 31 Red Dragon s Sands (301 Ocean Drive) 4 950 537 29 Key Biscayne Shopping Center 4 370 420 28 Florida Power & Light 4 326 394 25 Ridobil Inc 4,284,223 25 $122,777,924 717% Source Dade County Property Appraisers Office 41 a. VILLAGE OF KEY BISCAYNE FLORIDA 0 Demographic Statistics POPULATION Estimates of Population by Age UNDER 18 YEARS 18 TO 64 YEARS 65 YEARS OR OLDER YEAR NUMBER PERCENT NUMBER PERCENT NUMBER PERCENT TOTAL 1990 1 646 19 5 684 64 1 524 17 8 854 Estimates of Population by Race ANGLO BLACK HISPANIC TOTAL 1990 5 028 36 3 790 8 854 INCOME Per Capita Income ANGLO BLACK HISPANIC AVERAGE PER CAPITA 1990 $44 615 $24 577 $28 341 $37 629 UNEMPLOYMENT RATES**(Percent) 1983 1984 1984 1986 1987 1988 1989 1990 1991 1992 1993 1994 Dade County 98 78 75 67 58 53 63 70 88 100 77 79 [ U E F E U Village of Key Biscayne * SOURCE Bureau of Census Income Division **SOURCE State Department of Labor U 38 36 36[ 42 FirPI L VILLAGE OF KEY BISCAYNE, FLORIDA Miscellaneous Statistical Data September 30 1994 Date of Incorporation 1991 Form of Government Council Manager Area 1 2 Square Miles Miles of Streets 20 2 Lmear Miles Fire Protection Number of Stations 1 Police Protection Number of Stations Education Elementary Attendance Centers 1 Number of Students 456 Number of Teachers 31 Dade County Water & Sewer Authonty Number of Customers Average Daily Consumption 1 740 2 500 000 gallons Sewers Number of Customers 807 Fire Hydrants 122 Building Permits Issued 2 205 Recreation and Culture Number of Parks 2 Number of Libranes 1 (Operated by Dade County) Number of Tennis Centers 1 Number of Recreational Centers 1 Employees Full Time 79 43 THIS PAGE INTENTIONALLY LEFT BLANK U 0 U C E 0 E 0 0 U U 44 L Supplementary Auditor's Reports Section L P RACHLIN COHEN & HOLTZ CERTIFIED PUBLIC ACCOUNTANTS & CONSULTANTS A PARTNERSHIP INCLUDING PROFESSIONAL ASSOCIATIONS 1" Independent Auditor s Report on Internal Control Structure in Accordance With Government Auditing Standards Honorable Mayor and Village Council Village of Key Biscayne Florida We have audited the general purpose financial statements of the Village of Key Biscayne Florida as of and for the year ended September 30 1994 and have issued our report thereon dated February 2 1995 ld We conducted our audit in accordance with generally accepted auditing standards and GovernmentAudztrng 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 general purpose financial statements are free of material misstatement In planning and performing our audit of the general purpose financial statements of the Village of Key Biscayne Florida for the year ended September 30 1994 we considered its internal control structure in order to determme our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal control structure ssesi x The management of the Village of Key Biscayne Florida is responsible for establishing and maintaining an internal control structure In fulfilling this responsibility estimates and judgments by management are required to assessthe expected benefits and related costs of internal control structure policies and procedures The objectives of an internal control structure are to provide management with reasonable but not absolute assurance that assets are safeguarded against loss from unauthorized use or disposition and that transactions are executed in accordance with management s authorization and recorded properly to permit the preparation of financial statements in accordance with generally accepted accounting principles Because of inherent limitations in any internal control structure errors or irregularities may nevertheless occur and not be detected Also projection of any evaluation of the structure to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the effectiveness ofthe design and operation of policies and procedures may deteriorate 1320 South Dixie Hwy Penthouse Coral Gables Florida 33146 Dade (30s) 667 0412 Broward (305) 764 7717 Fax (305) 665 7456 100 South Biscayne Blvd Suite 1201 Miami Flonda 33131 Dade (305) 377 4228 Fax (30n) 377 8331 700 Southeast Third Ave Suite 300 Ft. Lauderdale Florida 33316 Broward (305) 764 7717 Dade (305) 667 0412 F x (305) 764 7835 51h East Las Olas Blvd Suite 950 Ft Lauderdale Florida 33301 Broward (305) 525 1040 Fax (305) 52s 2004 Math f mm I to IA M mb f h Am I utu IC of d P bl A M mb f th Fl t d I I 454 ff p p 1 D vt f SEC P n S t IC f dP bl A th gh h w Id d th Pn C mp ntants Pram Se n To the Honorable Mayor and Village Council Village of Key Biscayne Florida Page Two b For the purpose of this report, we have classified the significant internal control structure policies and procedures in the following categories General Ledger Cash Receipts and Disbursements Accounts Payable and Related Expenditures Fixed Assets Revenues and Receivables Budget Payroll and Personnel For all of the internal control structure categories listed above we obtained an understanding of the design of relevant policies and procedures and whether they have been placed in operation and we assessed control risk Our consideration of the internal control structure would not necessarily disclose all matters in the internal control structure that might be material weaknesses under standards established by the American Institute of Certified Public Accountants A material weakness is a condition in which the design or operation of one or more of the internal control structure elements does not reduce to a relatively low level the risk that errors and irregularities in amounts that would be material in relation to the general purpose financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions We noted no matters involving the internal control structure and its operations that we consider to be material weaknesses as defined above However we noted other matters that were reported to management in a separate letter accompanying this report r L r L L This report is mtended for the information of the Mayor Village Council and Village Management. However this report is a matter of public record and its distnbution is not limited adia,44,f4 Coral Gables Florida February 2 1995 46 RACHLIN COHEN Sc HOLTZ CERTIFIED PUBLIC ACCOUNTANTS & CONSULTANTS A PARTNERSHIP INCLUDING PROFESSIONAL ASSOCIATIONS 7 Independent Auditor s Report on Compliance in Accordance with Government Auditing Standards Honorable Mayor and Village Council Village of Key Biscayne Florida n E We have audited the general purpose financial statements of the Village of Key Biscayne Florida (the "Village) as of and for the year ended September 30 1994 and have issued our report thereon dated February 2 1995 We conducted our audit in accordance with generally accepted auditing standards and GovernmentAudztzng 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 of material misstatement Compliance with laws regulations contracts and state grants and aids appropriations applicable to the Village is the responsibility of the Village s management As part of obtaining reasonable assurance about whether the general purpose financial statements are free of material misstatement we performed tests of the Village s compliance with certain provisions of laws regulations contracts and state grants and aids appropriations However the objective of our audit of the general purpose financial statements was not to provide an opinion on overall compliance with such provisions Accordingly we do not express such an opinion The results of our tests indicate that, with respect to the items tested, the Village complied, m all material respects with the provisions referred to in the preceding paragraph. With respect to items not tested nothing came to our attention that caused us to believe that the Village had not complied in all material respects with those provisions This report is mtended for the information of the Mayor Village Council Village Management, and grantor agencies However this report is a matter of public record and its distribution is not limited aa, //lot Coral Gables Florida February 2 1995 1320 South Dixie Hwy Penthouse Coral Gables Florida 33146 Dade ( Oa) 667 0412 Broward (305) 764 7717 Fax (305) 665 7456 100 South Biscayne Blvd Suite 1201 Miami Flonda 33131 Dade (305) 377 4928 Fax (305) 377 8331 700 Southeast Th d Ave Suite 300 Ft Lauderdale Florida 33316 Broward (305) 764 7717 Dade (305) 667 0412 Fax (305) 764 783s 515 East Las Olas Blvd Suite 950 Ft Lauderdale Florida 33301 Broward (305) 525 1040 Fax (305) 525 2004 M mb fS M mb f th Am I n mmrtI t IA fC ti dP bl A Mmb f h Fl es' gg��yJtt Tic p p l n h gh to D Ytitdnrf SEC Pran S t d h P d I an f C rtf d P bl Acco h w Id Comp Pa S u RACHLIN COHEN & HOLTZ CERTIFIED PUBLIC ACCOUNTANTS & CONSULTANTS A PARTNERSHIP INCLUDING PROFESSIONAL ASSOCIATIONS Management Letter Honorable Mayor and Village Council Village of Key Biscayne Florida We have audited the general purpose financial statements of the Village of Key Biscayne Florida (the Village ) as of and for the year ended September 30 1994 and have issued a report thereon dated February 2 1995 We conducted our audit in accordance with generally accepted auditmg standards and Government Auditing Standards issued by the Comptroller General of the United States Those standards required that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement C L In connection with our audit of the general purpose financial statements of the Village for the year ended September30 1994 we report the following in accordance with Chapter 10 550 Rules of the Auditor General Local Governmental Entity Audits which requires that this report specifically address but not be limited to the matters outlined in Rule 10 554(1xf) 1 No irregularities were reported in the preceding annual financial audit 2 The Village has implemented recommendations made in the preceding annual financial audit report 3 The Village during fiscal year 1994 was not in a state of financial emergency as defined by Florida Statute Section 218 503 (1) 4 Recommendations to improve the Village s present financial management and accounting procedures are accompanying this report 5 During the course of our audit, nothing came to our attention that caused us to believe that the Village a Was in violation of any laws rules or regulations b Made any illegal or improper expenditures c Had improper or inadequate accounting procedures other than those noted in our report of recommendations to improve the Village s administrative and accounting controls d Failed to record financial transactions which could have a matenal effect on the Village s general purpose financial statements e Had other inaccuracies, irregularities shortages and defalcations 1320 South Dixie Hwy Penthouse Coral Gables Florida 33146 Dade (30a) 667 0412 Broward (305) 764 7717 Fax (305) 665 7456 100 South Biscayne Blvd Sane 1201 Miami Florida 33131 Dade ( 05) 377 4228 Fax (305) 377 8331 700 Southeast Third Ave Suite 300 Ft. Lauderdale Florida o16 Broward (305) 764 7717 480 d (30 ) 667 0412 Fax (305) 764 7835 515 East L s Olas Blvd Suite 950 Ft Lauderdale Florida 33301 Broward (305) n25 1040 F x (30 ) 525 2004 M mb f S mm t I t man I A I w h fP pn p l M mb f ih Am In fC d P bl A tant D f SEC P cv S M mb f th Fl nd In acute f Con f dP bi A co h gh d h P h w Id C trpan P S 1 C Coral Gables Florida February 2 1995 To the Honorable Mayor and Village Council Village of Key Biscayne Florida Page Two Our audit was not directed primarily toward obtaining knowledge toward all possible impropneties and accordingly our study was limited as descnbed in the second paragraph of this report 6 The financial report for the year ended September 30 1994 has been filed with the Department of Banking and Finance pursuant to Section 218 32 Flonda Statutes and is in agreement with the audited financial statements of the same period This report is intended for the information of the Mayor Village Council Village Management, and the Auditor General of the State of Flonda However this report is a matter of public record and its distribution is not limited 49 VILLAGE OF KEY BISCAYNE, FLORIDA Schedule of State Financial Assistance Fiscal Year Ended September 30 1994 State Program Revenue L— a. F- E 7 t r. t Hurricane Andrew Recovery and Rebuilding Trust Fund (94 EO 2F 11 23 02 025 026) $240,000 Note The grant agreement provided for the reimbursement of lost revenue due to Hurricane Andrew therefore there are no related expenditures 50 VILLAGE OF KEY BISCAYNE, FLORIDA Recommendation to Improve the Village s Administrative and Accounting Controls Fiscal Year Ended September 30 1994 Compensated Absences The recordkeepmg function for compensated absences (vacation and sick leave) are handled by their respective departments (general employees, police and fire) The recordkeepmg for the general employees was inadequate as there was no wntten authorization for used vacation and sick leave time We recommend that the Village require wntten authorization for vacation and sick leave tune We also recommend the Village review the recordkeepmg function of the police and/or fire departments and adopt similar procedures r r r L L_ r f 51