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HomeMy Public PortalAboutComprehensive Annual Financial Report Fiscal Year Ended 09-30-99.tifCOMPREHENSIVE ANNUAL FINANCIAL REPORT FISCAL YEAR ENDED SEPTEMBER 30, 1999 VILLAGE OF KEY BISCAYNE FLORIDA LIBRARY COPY RETURN TO FINANCE DEPT VILLAGE OF KEY BISCAYNE, FLORIDA COMPREHENSIVE ANNUAL FINANCIAL REPORT FISCAL YEAR ENDED SEPTEMBER 30 1999 Prepared by THE FINANCE DEPARTMENT VILLAGE OF KEY BISCAYNE, FLORIDA COMPREHENSIVE ANNUAL FINANCIAL REPORT FISCAL YEAR ENDED SEPTEMBER 30 1999 TABLE OF CONTENTS PAGE INTRODUCTORY SECTION Letter of Transmittal Village Officials Certificate of Achievement for Excellence m Financial Reporting Village Organization Chart II FINANCIAL SECTION Xllt xlv xv REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS 1 GENERAL PURPOSE FINANCIAL STATEMENTS (COMBINED STATEMENTS OVERVIEW) Combmed Balance Sheet All Fund Types and Account Groups 3 Combined Statement of Revenues Expenditures and Changes m Fund Balances All Governmental Fund Types 4 Statement of Revenues and Expenditures— Budget and Actual — General Fund 5 Combined Statement of Revenues Expenses and Changes in Retained Earnings Enterpnse Funds 6 Combined Statement of Cash Flovs Enterpnse Funds 7 Statement of Changes in Plan Net Assets - Pension Trust Fund 8 Notes to General Purpose Financial Statements 9 Required Supplementary Information 23 COMBINING INDIVIDUAL FUND AND ACCOUNT GROUP STATEMENTS AND SCHEDULES GENERAL FUND Comparative Balance Sheets 24 Schedule of Revenues and Expenditures Budget and Actual 25 CAPITAL PROJECTS FUNDS Combining Balance Sheets 27 Combining Statements of Revenues Expenditures and Changes in Fund Balances 28 ENTERPRISE FUNDS Combining Balance Sheds 29 Combining Statements of Revenues Expenses and Changes in Retained Earnings 30 Combining Statements of Cash Flows 31 INTRODUCTORY SECTION VILLAGE OF KEY BISCAYNE Vllag C l J [Ras My Martha Fdez Leon B ou ek, V May Scot B ss Al nH F n Momm F d G g ryC H Rb Oldakwk, Office of the Village Manager Honorable Mayor Members of the Village Council and Citizens of the Village of Key Biscayne Via Ma C Samu 1 Kit ng The Comprehensive Annual Financial Report of the Village of Key Biscayne for the fiscal year ended September 30 1999 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 matenal respects and is reported m a manner designed to fairly present the financial position and results of operations of the various funds and account groups of the Village MI disclosures necessary to enable the reader to gain an understanding of the Village s financial activities have been included. The Comprehensive Annual Financial Report (CAFR) is presented in four sections The introductory section includes this transmittal letter the Villages organizational chart, a list of principal officials and the 1998 Certificate of Achievement for Excellence in Financial Reporting The financial section includes the report of the independent certified public accountants on the general purpose financial statements and the required notes and the combining, mdividual fund and account group financial statements and schedules The statistical section includes unaudited selected financial and demographic information The compliance section contains those reports required to comply with Government Auditing Standards and Rules of the Auditor General of the State of Honda Reverting Entity and its Services The Village includes for financial reporting purposes in conformance with Governmental Accounting Standards Board (GASB) Statement Number 14 all fiords and account groups for which the Village is financially accountable The Village currently provides services associated with the following departments • Building Zoning and Planning • Police • Fire Rescue • Recreation • Public Works • Finance and Administrative Services • Office of the Village Clerk • Office of the Village Manager • Office of the Village Attorney 85 West McIntyre Street Key Biscayne Florida 33149 (305) 365 5514 Fax (305) 365-8936 MISSION ST TEMENT'TO PROVIDE A SAFE, QUAL TY COMMUNITY ENVIRONMENT FOR ALL ISLANDERS THROUGH RESPONSIBLE GO ERNMEVT Honorable Mayor Members of the Village Council and Citizens of the Village of Key Biscayne Florida Page Three project began m August 1998 and was completed by June 1999 Also important to the Village was completion of the East Enid Dnve Improvement Program Imp ovement, mcludmg repaving dnvmg lanes adding bnck paver parallel parking spaces north and south of the repaved road, replacing portions of the sidewalk abutting the road on the north side of the street and extending the in place decorative sidewalk on the south side were completed in July 1999 at a cost of approximately $820 000 Additionally the project added two elevated traffic calmmg/pedestrian crossing devices increasing the safety level for pedestrians and motonsts alike installed a new well and drainage system and provided accent path lighting at crosswalk areas along the promenade east of Ocean Dnve Associated with infrastructure is the Village s beautification programs which preserve and enhance Key Biscayne s unique character and quality of life of its residents Examples of this important Village initiative were the dedication of the Mashta Bndge and improvements to the Village entrance along Crandon Boulevard The new Mashta Bndge is bound to become a special Village landmark and a focal point of the community This attractive 45 foot long single space pre cast Mediterranean styled concrete bndge offers two lanes for the traffic pavers headwells bamer wall and decorative railings and lightmg Additionally its sidewalks and overlooks encourage pedestrians and cyclist to stop and admire the magnificent view of the Village As an added benefit, the bndge allows for tidal flushing between Hurricane Harbor and Smuggler s Cove resulting m a cleaner and more pleasant environment for the area s homeowners The second beautification project involved installation of up lighting for three medians at the Village entrance along Crandon Boulevard Completed in December 1997 at a cost of approximately S67 000 the project adds a tasteful touch to the south side of the Village s mam artenal road at the same time achieving the goal of traffic calming Additional beautification projects involved landscaping improvements and uplightmg for Ocean Lane Dnve medians and extensions of holiday lightmg to additional avenues The Miami Herald noted in a May 16 1999 news article that Crandon Boulevard is `tastefully landscaped Also important to the outstanding quality of hfe enjoyed by the Village s residents is the expansion of the already impressive programs offered by the Recreation Department During fiscal year 1999 the staff initiated its first concert senes to bang Village s residents the beauty and art of music This mitiarive proved to be great success as it allows all participants convenient access to shows that they might not have been otherwise able to attend Additionally the department contmued its work with vanous sport leagues operating within the Village Examples of these activities included conducting the National Youth Sports Coaches Association certification for the KBAC baseball program and hosting a three day coaching clime for the Flonda Youth Soccer Association In keeping the children and teens safe while playing sports the staff also received certification from the National Institute of Playground Safety Inspector for developing a monthly check list/audit forms for all playgrounds to check for entrapments pinch or crush points protrusions etc Improvements were also made m this fiscal year to the department s facihties m Calusa Park, where electrical Imes were rewired and the recreation building floor was retied dunng the summer of 1999 Honorable Mayor Members of the Village Council and Citizens of the Village of Key Biscayne Florida Page Five The contract whose closing date is at yet undetermined stipulates that the 2 06 acre site shall be purchased at a cost not to exceed $3 255 000 For the Future Village of Key Biscayne residents can be assured that during fiscal year 2000 their government will continue to provide them with more and better services For instance the Building Zoning & Planning Department is expected to unveil its new state of the art integrated permit system The new computer based system will allow for tracking the entire process of permitting and all its stages on lme and is expected to lead to more streamlined and efficient process of issuing a permit The Building Zoning & Planmng Department will also be adopting a new zoning code consistent with the Village s Comprehensive Plan to replace that of the County One change being proposed is hmitmg the maximum allowable floor area of the building to the lot size Additionally the Department will develop a streetscape improvement project from the entrance of the Village at its northerly limits to just south of the intersection of Harbor Drive and along Harbor Drive from Femwood Road to Ocean Lane Drive The project still under public review contains new curbing Royal Palms shade trees eight foot decorative sidewalks entrance features and bike lanes Keeping with the improvement theme the Public Works Department will be involved in the infrastructure improvements in fiscal year 2000 The Department s goals for the year include traffic calming devices for West Heather Dnve landscaping of the BellSouth easement on Femwood Road planning for the development of the Pines Canal overlook and sidewalk extension to the State Park, planning and development of the Village Ocean Park, and installation of the sanitary sewer project Important m maintaining and enhancing of the Villagers unique lifestyle are the activities of the Recreation Department During fiscal year 2000 the Department will further expand its activities make improvements to existing facilities and start expansion of new ones The Department will expand its excellent relationship with the Key Biscayne Athletic Club by contractmg with that organization to operate numerous activities for the Village s sports programs Various improvements will also be made to the Calusa Park, and will include resurfacing of the tennis courts adding basketball programs and installing a kiln for firing ceramics The Village will also start construction in fiscal year 2000 on the Ocean Park project Associated with the Village s recreational activities is the presence in our community of the Key Biscayne branch of the Miami Dade Library District Due to the Village s donation of $35 000 in fiscal year 2000 the facility will provide an additional 25 hours per week of operation including Sundays between October and May v Honorable Mayor Members of the Village Council and Citizens of the Village of Key Biscayne Florida Page Seven FINANCIAL INFORMATION Accounting 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 Budgetary control is maintained at the department level Expenditures that could result in an overexpended balance are not released until additional appropnations 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 maintaining accountability The concept of reasonable assurance recognizes that the cost of the controls should not exceed the benefits likely to be derived and the evaluation of costs and benefits requires estimates and judgment by management All internal control evaluations occur within the above framework We believe the Village s internal accounting controls adequately safeguard assets and pro\ ide reasonable assurance of proper recording of financial transactions Reporting Standards The form and control of the Comprehensive Annual Financial Report and the accompanying financial statements and statistical tables were prepared in conformance with standards set forth by I Governmental Accounting Standards Board (GASB) 2 Financial Accounting Standards Board (FASB) 3 Auditor General of the State of Honda 4 Charter of the Village of Key Biscayne 5 Government Finance Officers Association of the United States and Canada (GFOA) 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 m this fund General operating expenditures fixed charges and capital improvement costs not accounted for through other funds are accounted for m the General Fund _Vii_ Honorable Mayor Members of the Village Council and Citizens of the Village of Key Biscayne Florida Page Nine Capital Proiects Fund Durmg fiscal year 1995 the Village Council established a Capital Improvement Fund for various infrastructure projects of a multi year character Funding for these projects will come from annual appropriations in the General Fund Budget. These appropriations are recorded as operating transfers from the General Fund During fiscal year 1999 the Village Council established a Civic Center Fund to account for the land acquisition planning and construction of a new Village Civic Center to house Police Fire/EMS and administration offices for the Village of Key Biscayne Funding for this project is from a senes of Revenue Bonds the first of which was issued July 30 1999 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 The three enterprise funds are 1 Stormy ater Utility System 2 Solid Waste 3 Sanitary Sewer System The Village Council established a budget for the Sanitary Sewer System during the fiscal year A state loan was obtained from the Florida Department of Environmental Protection to finance the construction of the system Funds for the pre -construction design phase were received and the engineering firm of Post Buckley Schuh & Jerrigan Inc was lured to design the system Plans and specifications have been completed and approved by all appropriate agencies Fiduciary Fund The Fiduciary Fund type is a Trust and Agency Fund established for the purpose of accounting for assets held in trustee capacity or as an agent for individuals private organizations and other governments As of September 30 1999 the following is recorded as a Fiduciary Fund Pension Trust Fund The Village Council on October 1 1997 established a Retirement Plan for sworn police and firefighters in compliance with Part VII Chapter 112 Florida Statutes and Section 14 Article X of the State Constitution. Each member is required to contribute 14% of his/her salary until September 30 2000 This rate will be adjusted each year thereafter based on the most recent actuarial valuation of the Plan Honorable Mayor Members of the Village Council and Citizens of the Village of Key Biscayne Florida Page Eleven Note 3) A $10 000 000 Land Acquisition and Capital Improvement Revenue Bond Series 1999 at 5% for 20 years to purchase land and construct a Village Civic Center building The bond was issued through Bank of America Cash Management The Village has several cash management vehicles and investment accounts or money market accounts in the SunTrust and Northern Trust Banks under agreements which provided for overnight mvestments of both the investment accounts and the operatmg accounts to maximize earnings potential The Village also has an investment with the Florida Local Government Trust Fund administered by the State Board of Administration which as of September 30 1999 had a balance of $136 481 in the General Fund and $264 659 for the Law Enforcement Trust Fund 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 habihty limit under the policy is $5 000 000 Employee Life Insurance is with Standard Insurance Company Certificate Of Achievement For Excellence In Financial Reporting The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence m Financial Reporting to the Village for its Comprehensive Annual Financial Report for the fiscal year ended September 30 1998 The Village has received this award each year since 1992 The Government Finance Officers Association 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 begmnmg October 1 1998 The award has been received since 1993 In order to receive these awards a governmental unit must publish an easily readable and efficiently organized CAFR and a budget document that meets program criteria as a pohcy document, as an operations guide as a financial plan and as a communications device The awards are valid for a period of one year only We believe our CAFR for the fiscal year ended September 30 1999 and budget for fiscal year 2000 continue to conform to program requirements and we have submitted them to the GFOA to determme their eligibility xi VILLAGE OF KEY BISCAYNE, FLORIDA VILLAGE OFFICIALS VILLAGE COUNCIL Joe I Rasco, Mayor Gregory C Han, Vice -Mayor Martha Fdez-Leon Broucek Mortimer Fried Alan H Fein Scott Bass Robert Oldakowski VILLAGE MANAGER C Samuel Kissinger VILLAGE CLERK Conchita H Alvarez, CMC FINANCE DIRECTOR Moyer & Associates VILLAGE ATTORNEY Weiss, Serota, Hellman, Pastoriza & Guedes, P A VILLAGE AUDITORS Rachhn Cohen & Holtz LLP Certified Public Accountants & Consultants X111 Organizational Chart Department of building, Zoning and Planning (11) Special Master (2) Departmentof '.:.Emergency Services (71.5) Fire Rescue Village l Assistant t. the Manager:; (1) Department*f_: cRecreation f3) Special Events Sports and Athletics Programs and Tours Local Planning Agency Department .f Public Works (2) Village Engineer. Contract Supervisor Strmwater Management Refuse Collection and Recycling Maintenance Police/Flre Retirement Board (5) bepartment .f Finance and t Administrative Services (2) Finance/ Accounting !! Personnel/ benefits Risk Management''- FINANCIAL SECTION Rachlin Cohen & Holtz LLP Certified Public Accountants & Consultants REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS Honorable Mayor Village Council and Village Manager Village of Key Biscayne Flonda We have audited the accompanymg general purpose financial statements of the Village of Key Biscayne Flonda (the Village) as of and for the year ended September 30 1999 as hsted m the table of contents These general purpose financial statements are the responsibility of the Village s management Our responsibility is to express an opmon on these general purpose financial statements based on our audit We conducted our audit m accordance with generally accepted auditing standards and the standards applicable to financial audits contained m 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 material misstatement An audit mcludes examining on a test basis evidence supporting the amounts and disclosures m the financial statements An audit also includes assessmg the accounting principles used and significant estimates made by management as well as evaluatmg the overall financial statement presentation We beheve that our audit provides a reasonable basis for our opinion In our opinion, the general purpose financial statements referred to above present fairly m all material respects the financial position of the Village as of September 30 1999 and the results of its operations and the cash flows of its propnetary fund type for the year then ended m conformity with generally accepted accounting principles In accordance with Government Auditing Standards we have also issued a report dated February 1 2000 on our consideration of the Village s mtemal control over financial reporting and our tests of its comphance with certain provisions of laws regulations grants and contracts Our audit was conducted for the purpose of forming an opinion on the general purpose financial statements taken as a whole The accompanying combining mdividual fund and account group statements and schedules as fisted m the table of contents and the required supplementary mformation on page 23 are presented for purposes of additional analysis and are not a required part of the general purpose financial statements Such information has been subjected to the auditing procedures apphed m the audit of the general purpose financial statements and, m our opinion, is fairly presented m all matenal respects in relation to the general purpose financial statements taken as a whole 1 One Southeast Third AN, enue Tenth Floor Miami Flonda 33131 Tel 305 377 4228 Fax 305 377 8331 Offices in Miami Ft Lauderdale Boca Raton West Palm Beach Stuart wwwrchcpa con Membe ESumwtintemae al Assoc tes Inc th ffi esmpnn planes through tth odd Memb (Ain Am can Inshtut fC chfi d P bl A untants and m mbe f th Ronda Institut fC nit d Pubh A unbNs Honorable Mayor Village Council and Village Manager Village of Key Biscayne Honda Page Two The information shown m the statistical section listed m the table of contents has not been subjected to the auditing procedures applied in the audit of the general purpose financial statements and accordingly we express no opuuon thereon / c eb-4 4 . 2% Led Miami Flonda February 1 2000 -2 GENERAL PURPOSE FINANCIAL STATEMENTS (Combined Statements - Overview) VILLAGE or ICE? BISCAYNE FLORI DA COMBINED BALANCE SHEET ALL FUND TYPES AND ACCOUNT GROUPS SEPTEMBER 30 1999 (WITH COMPARATIVE TOTALS FOR SEPTEMBER 30 1998) Governmental Proprietary Fiducia ry Account Fund Types Fund Types Fund Type Gr oups Trust General General Totals Capital and Fi xed Long Term (Memorandum Only) General Protects Enterprise Agency Assets Debt 1999 1998 ASSETS AND OTHER DEBITS Cash and cash equivalents Investments D ue from other governments Due from other Rinds Pro perty taxes receivable Accounts receiv able net Interest receivable Prepaid loan fees and capitalized interest Fixed assets Amount to be provided for retiremen t of general lo ng term debt Total assets and other debits $ 1 836 469 $ 2 361 021 $ 1 554 492 $ 29 549 $ 2 105 664 11 100 771 893 194 198 216 120 576 55 299 359 322 88 000 112 650 $ 5 781 531 $ 4 628 000 14 099 629 4 861 793 27 220 318 792 670 744 55 299 24 806 559 972 874 514 43 962 43 962 48 375 9 870 451 19 949 285 29 819 736 27 216 994 16 138 654 16,138,654 6,890,375 $ 4,554,970 $ 13 670,368 $ 11 581 555 $ 922 743 $ 19 949,285 $ 16 138 654 $ 66,817,575 $ 45 242 821 LIABILITIES, EQU ITY AND OTHER CREDITS Liabilities Acco unts payable and accrued liabilities $ 308 138 $ 190 255 $ 82 180 $ $ $ $ 580 573 $ 519 010 Retamage payable 33 543 11 750 45 293 88 783 Deposits and performance bonds 5 915 5 915 11 027 Due to other funds 120 576 198 216 318 792 670 744 Revolving loan 723 762 723 762 723 762 Bond anticipation no tes 7 200 000 Compensated absences payable 1 048 654 1 048 654 905 375 Revenue bonds payable 7 200 000 15 090,000 22,290,000 5,985 000 To tal liabilities 434 629 422,014 8,017,692 16 138 654 25,012 989 16,103,701 Equity and other credits Investment in general fixed assets 19 949 285 19 949 285 17 356 576 Contributed capital 2 682 901 2 682 901 2 682 901 Retained earnings 880 962 880 962 937 759 Fund balance Reserv ed 3 720 236 13 248 354 922 743 17 891 333 7 735 884 Unreserved Designated 400,105 400 105 426 000 Total equity and other credits 4,120,341 13 248,354 3,563 863 922 743 19 949,285 41,804,586 29 139,120 Total habdrhes equity and other credits 5 4 554,970 5 13 670,368 $ 11 581,555 $ 922 743 $ 19 949 285 $ 16 138 654 $ 66 817 575 $ 45 242,821 See notes to general purpose financial statements 3 VILLAGE OF KEY BISCAYNE FLORIDA STATEMENT OF REVENUES AND EXPENDITURES BUDGET AND ACTUAL GENERAL FUND FISCAL YEAR ENDED SEPTEMBER 30 1999 Budgetary Vanance Basis Favorable Budget Actual (Unfavorable) Revenues Property taxes $ 6 947 916 $ 7 012 714 $ 64 798 Utility taxes 1 507 000 1 621 473 114 473 Franchise fees 692 500 740 031 47 531 Intergovernmental 789 375 807 924 18 549 Licenses and permits 687 925 668 672 (19 23) Charges for services 102 600 457 828 355 228 Other 22 057 22 057 Interest 250 000 231 820 (18 180) Grants 148 000 815 116 667 116 Total revenues 11 125 316 12 377 635 1252 319 Expenditures Current General government 862 682 844 149 18 533 Public works 561 084 425 464 135 620 Building zoning and planning 1 102 062 1 082 177 19 885 Parks and recreation 311 599 301 942 9 657 Public safety 5 874 942 5 811 878 63 064 Non -departmental 800 082 700 146 99 936 Debt Service Principal 895 000 895 000 Interest 241435 241327 108 Total expenditures 10 648 886 10 302 083 346 803 Excess of revenues over expenditures Other financing sources (uses) Appropnation of prior years fund balance expenditures of prior year reserves Operatmg transfers out Total other financing sources (uses) Excess of revenues and other financing sources over expenditures and other financing uses 476 430 2 075 552 1 599 122 541 000 (541 000) (1 017 430) (1 017 430) (476 430) (1 558 430) (1 082 000) $ $ 517122 $ 517122 See notes to general purpose financial statements 5 VILLAGE OF KEY BISCAYNE FLORIDA COMBINED STATEMENT OF CASH FLOWS ENTERPRISE FUNDS FISCAL YEAR ENDED SEPTEMBER 30 1999 (WITH COMPARATIVE TOTALS FOR FISCAL YEAR ENDED SEPTEMBER 30 1998) Cash flows from operating activities Operatmg income Adjustments to reconcile operating income to net cash provided by operating activities Depreciation Provision for uncollectible accounts Changes in operating assets and liabilities (Increase) decrease in Accounts receivable Interest receivable Due from other governments Increase (decrease) in Accounts payable Retamage payable Due to other funds Total adjustments Net cash provided by operating activities Cash flows from non capital financmg activities Transfers out Net cash used by non capital financing activities Cash flows from capital and related financing activities Payments for construction in progress Proceeds from revenue bonds Retirement of bond anticipation notes Net proceeds from revolving loan Interest paid Net cash used by capital and related financmg activities Cash flows from investing activities Interest received Net cash provided by investing activities Net decrease m cash and cash equivalents Cash and cash equivalents beginning Cash and cash equivalents ending See notes to general purpose financial statements 7 1999 1998 $ 181542 $ 153,391 269 729 269 729 15 000 517 902 8 562 (182 491) (470 237) (523 407) 8 442 (8 562) 91 639 (110 063) 470 237 143 465 213 015 325 007 366 406 (455 000) (455 000) (279 762) (567 044) 7,200 000 (7,200 000) 679 800 (301,499) (318 240) (581 261) (205 484) 63 160 85 138 63 160 85 138 (193 094) (208,940) 1 747 586 1 956 526 $ 1,554 492 $ 1 747 586 NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS VILLAGE OF KEY BISCAYNE, FLORIDA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS SEPTEMBER 30 1999 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 accounting policies of the Village conform to generally accepted accounting principles (GAAP) as applied to governmental units This report, the accounting systems and classification of accounts conform to the standards of the Governmental Accounting Standards Board (GASB) which 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 to assist the reader in mterpretmg the general purpose financial statements and other data in this report These policies are considered essential and should be read in conjunction with the accompanying general purpose financial statements 1 Financial Reporting Entity The financial statements were prepared m accordance with GASB Statement No 14 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 Based upon the application of these cntena, there were no organizations that met the criteria described above 2 Measurement Focus Basis of Accounting and Basis of Presentation The accounts of the Village are organized and operated on the basis of funds and account groups A fund is an independent fiscal and accounting entity with a self balancing set of accounts Fund arcountin • segregates funds according to their intended purpose and is used to aid management in demonstrating compliance with finance -related legal and contractual provisions The minimum number of funds is maintained consistent with legal and managerial requirements Account groups are a reporting device to amount for certain assets and liabilities of the governmental funds not recorded directly m those funds -9- VILLAGE OF KEY BISCAYNE FLORIDA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS (Continued) NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 2 Measurement Focus Basis of Accounting and Basis of Presentation (Continued) Proprietary Fund Type (Continued) by a Governmental Accounting Standards Board (GASB) pronouncement in accounting and reporting for its propnetary operations The proprietary fund includes the following fund type The enterprise funds are used to account for those operations that are fmanced and operated in a manner similar to pnvate business or where the Council has decided that the determination of revenues earned costs incurred (including depreciation) and/or net income is necessary for management accountability The Village has three enterprise funds a stormwater utility fund, a solid waste fund and a sanitary sewer construction fund Fiduciar) Fund Type The fiduciary fund accounts for assets held by the Village in a trustee capacity or as an agent on behalf of others Fiduciary funds include the following fund type Tist funds are custodial in nature and do not present results of operations or have a measurement focus Trust funds are accounted for in a manner similar to proprietary fund types Trust funds are used to account for assets held by the Village in a trustee capacity for individuals pnvate organizations other governments and/or other funds The Village has one trust fund a pension trust fund that accounts for a defined benefit pension plan Account Groups The general fixed assets account group is used to account for fixed assets not accounted for in proprietary funds The general long term debt account group is used to account for general long term obligations including compensated absences that are not specific liabilities of the propnetary fund 3 Budgets and Budgetary Accounting An annual appropriated budget is prepared for the general fund The Village follows these procedures in establishing the budgetary data reflected in the financial statements (a) The Village Manager submits to the Council a proposed operatmg 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 routme nature 11 VILLAGE OF KEY BISCAYNE FLORIDA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS (Continued) NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Contmued) 5 Fixed Assets Fixed assets used m governmental fund type operations are accounted for m the general fixed assets account group rather than in the governmental funds General fixed assets purchased are initially reported as expenditures in the general and capital projects funds 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 assets which mclude streets alleys sidewalks dramage and lighting systems which are unmovable and of value only to the Village Depreciation is not required and has not been provided on general fixed assets Proprietary fund fixed assets currently consists of assets capitalized for the stormwater utility system project and the sanitary sewer construction project The fixed assets are stated at cost and depreciated based on the straight line method over the estimated useful lives which range between 20 and 45 years 6 Interfund Receivables/Payables Transactions between funds that are representative of lending/borrowing arrangements at the end of the fiscal year are reported as due to/from other funds 7 Compensated Absences It is the Village s policy to permit employees to accumulate earned but unused vacation and sick pay and compensatory time within specified limits The accumulated unpaid vacation and sick leave and compensatory time is reported in the general long term debt account group 8 Long -Term Obligations The Village reports long term debt of governmental funds in the general long term debt account group Certain other governmental fund obligations not expected to be financed with current available financial resources are also reported in the general long term debt account group Long term debt and other obligations fmanced by proprietary funds are reported as liabilities of those funds 9 Reserves and Designations Fund balances are reserved to indicate that a portion of fund equity 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 mtended Designated fund balances mdicate that a portion of fund equity has been segregated based on tentative plans of the Village administration Such plans or intent are subject to change Unreserved undesignated fund balance is the portion of fund equity available for any lawful use 13 VILLAGE OF KEY BISCAYNE, FLORIDA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS (Continued) NOTE 2 DEPOSITS AND INVESTMENTS (Continued) At September 30 1999 the Villages investments balances at fair value were as follows Category 1 Repurchase agreements $2 526 656 Bonds 266 285 Common stock 626,909 $3.419,850 Investments not subject to categorization Mutual funds State Board of Administration investment pool $4 005 975 2.351.770 $9.777.595 A reconciliation of cash and investments as shown on the combined balance sheet is a follows Carrying amount of deposits Carrying amount of investments Cash and cash equivalents Investments NOTE 3 PROPERTY TAXES $10 103,565 9.777,595 $19.881.160 $ 5 781 531 14,099,629 $19 881 160 Property values are assessed on a county wide basis by the Mann -Dade County Property Appraiser as of January 1 the hen 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 nullage rate upon the taxable value which will provide revenue required for the fiscal year beginning October 1 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 penod November through February and are due no later than March 31 On April 1 unpaid amounts become delinquent with mterest 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 1999 there were no significant delinquent taxes 15- VILLAGE OF KEY BISCAYNE, FLORIDA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS (Continued) NOTE 5 LONG TERM DEBT (Continued) Revenue Bonds Land Acquisition Revenue Bonds 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 principal installments ranging from $935 000 in fiscal 2000 to $1 105 000 in fiscal 2004 Interest accrues at 4 36% per annum Debt service requirements to maturity is as follows Principal Interest Total Fiscal year ending September 30 2000 2001 2002 2003 2004 $ 935 000 $201 541 $1 136 541 975 000 159 903 1 134 903 1 015 000 116 521 1 131 521 1 060 000 71 286 1 131 286 1,105,000 24 089 1.129,089 $5.090.000 $573.340 $5.663.340 Land Acquisition and Capital Improvement Revenue Bonds During the fiscal year ended September 30 1999 the Village issued land acquisition and capital improvement revenue bonds of $10 million, the proceeds of which were used for the acquisition of property and financmg of the construction of the Civic Center project 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 rangmg from $355 000 in fiscal 2000 to $815 000 in fiscal 2020 Interest accrues at 4 715% per annum Debt service requirements to maturity is as follows Fiscal year ending September 30 2000 2001 2002 2003 2004 2005 2020 Principal Interest Total 355 000 375 000 9,270,000 $10.000.000 $ 394 226 $ 394 226 471500 471500 471500 471500 463 131 818 131 445 921 820 921 3,951,562 13.221,562 $6,197.840 $16.197 840 17 VILLAGE OF KEY BISCAYNE, FLORIDA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS (Continued) NOTE 6 COMMITMENTS AND CONTINGENCIES (Continued) Litigation The Village is mvolved m several lawsuits incidental to its operations the outcome of which m the opimon of management and legal counsel would not have a material adverse effect on the financial condition of the Village Risk Management The Village is exposed to various nsks 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 m msurance coverage from coverages m the pnor year and there were no settlements that exceeded insurance coverage for each of the past three years Grant Contingency Federal and State programs m which the Village participates were audited m accordance with the provision of regulatory requirements and grantor agencies Pursuant to those provisions certam programs were tested for compliance with applicable grant requirements Wlule no matters of noncompliance were disclosed by the audit, government agencies may subject grant programs to additional compliance tests that may result m disallowed costs In the opinion of management future disallowances of grant expenditures if any would not have a matenal adverse effect on the financial condition of the Village NOTE 7 RESERVED !DESIGNATED FUND BALANCES I As of September 30 1999 find balances m the general fund and capital projects fund have been reserved or designated for the following purposes Reserved Fund Balances General fund Supplemental fire aid Beach improvements Special disaster relief Recreation facilities Law enforcement seizures Community center Beach park and walk Compensated absences Subsequent year s budget Emergencies $ 125 000 24 600 100 000 99 860 262 352 30100 572 738 565 586 440 000 1.500000 $3 720.236 19 VILLAGE OF KEY BISCAYNE, FLORIDA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS (Continued) NOTE 9 DEFINED BENEFIT PENSION PLAN (Continued) Plan Description (Continued) Members are vested after 5 years of service Vested employees may 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 At October 1 1998 (the latest actuarial valuation date) Plan membership consisted of the following Retirees and beneficiaries currently receiving benefits and terminated employees entitled to benefits but not yet receiving them Current employees Vested 35 Non vested 19 Total 54 Funding Policy From the effective date of the Plan October I 1997 through September 30 2000 the contribution by each member of the Plan is 14% The rate will be adjusted each year thereafter to an amount equal to the total cost for the year as determined by the most recent actuarial valuation, less the amount of revenue received from the State of Honda pursuant to Chapters 175 and 185 of the Honda Statutes The minimum member contribution rate is 8% The Plan is designed to limit the Village s exposure to contribute to the Plan The aggregate actuarial cost method does not identify and separately amortize unfunded actuarial liabilities Annual Pension Cost and Net Pension Asset As of October 1 1997 (date of transition and effective date of Plan) there was no net pension obligation The annual pension cost and net pension asset for the current year was as follows Annual required contribution Interest on net pension asset Adjustment to annual required contribution Annual pension cost Contributions made Increase m net pension asset Net pension asset, beginning of year Net pension asset end of year $ 1 497 1 497 60 949 59 452 32.526 $91 978 21 REQUIRED SUPPLEMENTARY INFORMATION VILLAGE OF KEY BISCAYNE, FLORIDA REQUIRED SUPPLEMENTARY INFORMATION PENSION TRUST FUND SCHEDULE OF EMPLOYER CONTRIBUTIONS Year Annual Ended Required Actual Percentage September 30 Contribution Contribution Contributed 1998 $ $ 32 525 100%+ 1999 1 497 60 949 100%+ The information presented m the required supplemental schedules was determined as part of the actuarial valuation at the date mdicated Additional information as of the latest actuarial valuation follows Valuation date 10/1/98 Actuarial cost method Aggregate actuarial cost method Amortization method N/A Remaining amortization period N/A Asset valuation method Market value Actuarial assumptions Investment rate of return* 9% per year compounded annually net of mvestment related expenses Projected salary increases* 6% Cost of living adjustments N/A *Includes inflation at 4% 23 COMBINING, INDIVIDUAL FUND AND ACCOUNT GROUP STATEMENTS AND SCHEDULES GENERAL FUND The general fund is the principal operating fund of the Village and is used to account for resources traditionally associated with governments which are not required to be accounted for m another fund. VILLAGE OF KEY BISCAYNE FLORIDA GENERAL FOND COMPARATIVE BALANCE SHEETS SEPTEMBER 30 1999 (WITH COMPARATIVE TOTALS FOR SEPTEMBER 30 1998) 1999 1998 ASSETS Cash and cash equivalents $ 1 836 469 $ 2 589 105 Investments 2 105 664 1 037 533 Due from other governments 27 220 Due from other fiords 198 216 25 085 Property taxes receivable 55 299 24 806 Accounts receivable 359 322 243 962 Total assets $ 4 554 970 $ 3 947 711 LIABILITIES AND FUND BALANCES Liabilities Accounts payable and accrued liabilities $ 308 138 $ 157 465 Deposits and performance bonds 5 915 11 027 Due to other funds 120 576 176 000 Total liabilities 434 629 344 492 Fund balances Reserved for Supplemental fire aid 125 000 125 000 Beach improvements 24 600 24 600 Special relief disaster 100 000 Recreation facilities 99 860 243 500 Law enforcement seizures 262,352 Community center 30 100 30 100 Beach park and walk 572,738 259 700 Compensated absences 565 586 670 000 Subsequent year s budget 440 000 541 000 Emergencies 1 500 000 1 283 319 3 720 236 3 177 219 Unreserved Designated for Police/fire equipment and building 40 000 40 000 Community grants maintenance and improvements 51 000 51 000 Professional fees 34 105 60 000 Inspector fees 275 000 275 000 400 105 426 000 Total fund balances Total liabilities and fund balances 4 120,341 3 603 219 $ 4,554,970 $ 3 947 711 24 VILLAGE OF KEY BISCAYNE FLORIDA GENERAL FUND SCHEDULE OF REVENUES AND EXPENDITURES BUDGET AND ACTUAL (Continued) FISCAL YEAR ENDED SEPTEMBER 30 1999 Budgetary Variance Basis Favorable Budget Actual (Unfavorable) Expenditures General government Elected officials $ 25 000 $ 27 914 $ (2 914) Administration 624 682 595 207 29 475 Village attorney 213 000 221 028 (8 028) Total general government 862 682 844 149 18 533 Public works 561 084 425 464 135 620 Buildin • planning and zoning 1 102 062 1 082 177 19 885 Parks and recreation 311 599 301 942 9 657 Public safety 5 874 942 5 811 878 63 064 Non -departmental 800 082 700 146 99 936 Debt service Principal 895 000 895 000 Interest 241435 241327 1 136 435 1 136 327 Total expenditures Other financing uses Expenditures of prior year reserves Transfers out 108 108 10 648 886 10 302 083 346 803 541 000 (541 000) 1 017 430 1 017 430 1 017 430 1 558 430 (541 000) Total expenditures and other financing uses $ 11 666 316 $ 11 860 513 $ (194 197) -26 CAPITAL PROJECTS FUNDS Capital Projects funds are used to account for the acquisition or construction of major capital projects not being financed by proprietary funds Capital Improvement The capital improvement fund accounts for the acquisition or construction of various major capital projects Civic Center The Civic Center fund was estabhshed to account for the construction of the Village Civic Center which will include administrative offices Fire and Police facilities and a Village Community Center VILLAGE OF KEY BISCAYNE FLORIDA CAPITAL PROJECTS FUNDS COMBINING BALANCE SHEETS SEPTEMBER 30 1999 (WITH COMPARATIVE TOTALS FOR FISCAL YEAR ENDED SEPTEMBER 30 1998) Capital Civic Totals Improvement Center 1999 1998 ASSETS Cash and cash equivalents $ 337 743 $ 2 023 278 $ 2 361 021 $ 275 017 Investments 3 074 043 8 026 728 11 100 771 3 414 075 Due from other funds 120 576 120 576 637 097 Accounts receivable 88 000 88 000 Prepaid loan fees and capitalized mterest 4 413 Total assets $ 3 499 786 $ 10 170 582 $ 13 670 368 $ 4 330 602 LIABILITIES AND FUND EQUITY Liabilities Accounts payable and accrued habihties $ 190 255 $ $ 190 255 $ 94 624 Retamage payable 33,543 33 543 77 033 Due to other funds 35 970 162 246 198 216 24 507 Total habihtres 259 768 162,246 422 014 196 164 Fund balance Reserved for capital improvements 3 240 018 10 008 336 13,248,354 4 134 438 Total habilities and fund equity $ 3 499 786 $ 10 170 582 $ 13 670 368 $ 4 330 602 27 ENTERPRISE FUNDS Enterprise funds are used to account for operations that are financed and operated in a manner similar to private business enterprises where the mtent is that the costs of providing goods or services be financed or recovered primarily though user charges Stormwater Utility System The stormwater utility system accounts for the construction and maintenance of the stormwater system. Solid Waste The solid waste thud provides collection service for trash removal Solid waste expenses are pnmanly for curbside collections Sanitary Sewer Construction The sanitary sewer construction fund accounts for the development and construction of a sanitary sewer system to the unsewered areas of the community 4W VILLAGE OF KEY BISCAYNE FLORIDA ENTERPRISE FUNDS COMBINING BALANCE SHEETS SEPTEMBER 30 1999 (WITH COMPARATIVE TOTALS FOR SEPTEMBER 30 1998) ASSETS Current assets Cash and cash equivalents Due from other funds Accounts receivable net Total current assets Prepaid loan fees and capitalized interest Fixed assets net Total assets LIABILITIES AND FUND EQUITY Current liabilities Accounts payable and accrued liabilities Retainage pa) able Due to other funds Bond anticipation notes Current portion of revenue bonds payable Total current liabilities Long term debt Revolving loan Revenue bonds payable Total liabilities Fund equity Contributed capital Retained earnings Total fund equity Stormy. ater Utility S stem Solid Waste Sanitary Sewer Totals Construction 1999 1998 $ 1 128 806 $ 96 542 $ 329 144 $ 1 554 492 $ 1 747 586 8 562 94 516 18 134 112 650 630 552 1 223 322 114 676 329 144 1 667 142 2 386 700 9 517,202 43 962 43 962 43 962 353 249 9 870 451 9 860 418 $ 10 740 524 $ 114 676 $ 726 355 $ 11 581 555 $ 12 291 080 $ 82 180 $ 11 750 135 000 228 930 7 065 000 7,293 930 2 682 901 763 693 114 676 3 446,594 114 676 $ 82 180 $ 264 671 11 750 11 7)0 470 237 7 200 000 135 000 228 930 7 946 6)8 723 762 723 762 723 762 7 065 000 723 762 8 017 692 8 670 420 2 682 901 2 682 901 2 593 880 962 937 759 2 593 3 563 863 3 620 660 Total liabilities and fund equity $ 10 740 524 $ 114 676 $ 726 355 $ 11 581 555 $ 12 291 080 29 VILLAGE OF KEY BISCAYNE, FLORIDA ENTERPRISE FUNDS COMBINING STATEMENTS OF CASH FLAWS FISCAL YEAR ENDED SEPTEMBER 30 1999 (WITH COMPARATIVE TOTALS FOR FISCAL YEAR ENDED SEPTEMBER 30 1998) Stormwatcr Sanitary Utility Solid Sewer Totals System Waste Construction 1999 1998 Cash flows from operatmg activities. Operating income (loss) $ 168 084 $ 23,318 $ (9 860) $ 181 542 $ 153 391 Adjustments to reconcile operatmg income (loss) to net cash provided by (used m) operating activities Depreciation 269 729 269 729 269 729 Provision for uncollectible accounts 15 000 Change in operating assets and liabilities (Increase) decrease in. Accounts receivable 23 996 71,506 422 400 517 902 (523 407) Interest receivable 8 442 Due from other governments 8,562 8 562 (8,562) Increase (decrease) in Accounts payable (80,291) (102,200) (182491) 91639 Retamage payable (110 063) Due to other funds (455 578) (5 000) (9 659) (470 237) 470,237 Total adjustments (233 582) 66,506 310 541 143 465 213 015 Net cash provided (used) by operatmg activities (65 498) 89 824 300 681 325 007 366 406 Cash flows from non -capital fmancmg activities Transfers out (455 000) Net cash used by non -capital financing activities (455 000) Cash flows from capital and relatmg fmancmg activities Payments for construction in progress (188 522) (91 240) (279 762) (567 044) Proceeds from revenue bonds 7,200 000 7,200 000 Retirement of bond anticipation notes (7,200 000) (7,200 000) Net proceeds from revolving loan 679 800 Interest paid (301499) (301 499) (318,240) Net cash used in capital and related fmancmg activities (490 021) (91,240) (581,261) (205 484) Cash flows from mvestmg activities - Interest received 52488 1558 9114 63160 85138 Net cash provided by mvestmg activities 52 488 1,558 9 114 63 160 85 138 Net increase (decrease) m cash and cash equivalents (503 031) 91,382 218 555 (193 094) (208 940) Cash and cash equivalents beginning 1 631 837 5 160 110 589 1 747 586 1 956 526 Cash and cash equivalents ending $ 1 128,806 $ 96,542 $ 329 144 $ 1 554 492 $ 1747,586 31 GENERAL FIXED ASSETS ACCOUNT GROUP To account for fixed assets not accounted for in propnetary fund operations VILLAGE OF KEY BISCAYNE FLORIDA SCHEDULE OF GENERAL FIXED ASSETS BY SOURCE SEPTEMBER 30 1999 (WITH COMPARATIVE TOTALS FOR SEPTEMBER 30 1998) 1999 1998 General fixed assets Land $ 13 240 657 $ 13 240 657 Buildings 730 717 587 076 Improvements other than buildings 2 957 733 974 994 Equipment 2 702 361 2 441 544 Furniture and fixtures 128 272 112 305 Construction m progress 189 545 Total general fixed assets $ 19 949 285 $ 17 356 576 Investment in general fixed assets by source General fund $ 13 459 810 $ 13 356 576 Capital project fiords 2 489 475 Donations 4 000 000 4 000 000 Total investment m general fixed assets $ 19 949 285 $ 17 356 576 32 VILLAGE OF KEY BISCAYNE, FLORIDA SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY FISCAL YEAR ENDED SFPTEMBER 30 1999 General government Parks and recreation Public safety Balance September 30 1998 $ 4 343 820 10 315 815 2 696 941 Additions Deletions $ 2 203 936 $ 156 487 463 511 Balance September 30 1999 $ 6 547 756 10 472 302 231 225 2 929 227 $ 17 356 576 $ 2 823 934 $ 231 225 $ 19 949 285 34 GENERAL LONG-TERM DEBT ACCOUNT GROUP To account for the Villages unmatured principal and long term portion of compensated absences VILLAGE OF KEY BISCAYNE FLORIDA SCHEDULE OF GENERAL LONG TERM DEBT SEPTEMBER 30 1999 (WITH COMPARATIVE TOTALS FOR SEPTEMBER 30 1998) 1999 1998 Amount to be provided for retirement of general long term debt $ 16 138 654 $ 6 890 375 General long term debt payable Compensated absences payable Revenue bonds payable $ 1 048 654 $ 905 375 15 090 000 5 985 000 Total general long term debt payable $ 16 138 654 $ 6 890 375 35 STATISTICAL SECTION VILLAGE OF KEY BISCAYNE FLORIDA GENERAL GOVERNMENTAL EXPENDITURES BY FUNCTION Fiscal General Pubhc Parks and Pubhc Year Government Safety Recreation Works Total 1992 $ 1 468 000 $ 13 511 $ 11 779 $ 86 580 $ 1 579 870 1993 2 848 857 2 790 379 240 794 185 257 6 065 287 1994 4 126 094 (2) 4 453 039 9 601 922 (1) 782 001 18 963 556 1995 5 524 305 m 4 294 606 211 159 573 844 10 603 914 1996 3 124 384 (2) 4 634 385 234 154 753 823 8 746 746 1997 3 577 170 (2) 5 017 882 239 029 660 780 9 494 861 1998 3 671 970 (2) 5 278 315 255 704 828 287 10 034 276 1999 4 173 995 (2) 5 644 903 293 664 730 521 10 843 083 (1) Includes acquisition of land for $9 238 317 for the Village Green (2) General government mcludes economic development, budding zoning and planning debt service capital outlay and non -departmental expenditures Notes The Villages first year of operation was fiscal year 1992 Includes general fund only (GAAP basis) 36 VILLAGE OF KEY BISCAYNE FLORIDA UTILITY TAX REVENUE BY SOURCE I Fiscal Year Electricity 1992 1993 1994 1995 1996 1997 1998 1999 $ 676 919 857 002 888 752 875 704 888 651 1 032 445 989 535 992 319 Telecom mumcations $ 157 887 199 308 202 702 186 780 199 746 274 768 288 581 380 934 Gas $ 35 552 24 184 26 925 38 130 37 034 42 066 36 427 35 121 FRANCHISE FEE REVENUE BY SOURCE Fiscal Year Electricity 1992 1993 1994 1995 1996 1997 1998 1999 $ 112 658 570 605 603 638 589 031 571 093 578 195 631 323 653 799 Fuel Oil Water Total $ 3 548 $ 105 830 $ 979 736 4 708 126 882 1 212 084 4 331 145 719 1 268 429 3 920 152 645 1 257 179 3 885 165 169 1 294 485 3 616 202 918 1 555 813 3 883 196 271 1 514 697 4 262 208 837 1 621 473 Cable Television Telephone Total $ 38 734 39 821 43 877 43 899 46 824 62 342 53 728 56 997 $ $ 151392 15 389 625 815 20 505 668 020 19 914 652 844 20 179 638 096 27 277 667 814 24 016 709 067 29 235 740 031 38 VILLAGE OF KEY BISCAYNE FLORIDA ASSESSED AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY Net Assessed Tax Real Personal Property Year Property Property Value 1992 $ 1 601 826 518 $ 15 314 570 $ 1 617 141 088 1993 1 543 711 468 16 345 662 1 560 057 130 1994 1 715 626 471 26 295 113 1 741 921 584 1995 1 744 363 535 23 093 470 1 767 457 005 1996 1 837 939 078 23 304 054 1 861 243 132 1997 1 978 219 125 24 830 107 2 003 049 232 1998 2 004 007 700 24 166 508 2 028 174 208 1999 2 298 267 009 27 086 715 2 325 353 724 Source Miami Dade County Property Appraisers Office Note Assessed values equal the estimated actual value -40 VILLAGE OF KEY BISCAYNE FLORIDA RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR NET BONDED DEBT TO GENERAL GOVERNMENTAL EXPENDITURES Ratio of Debt Total Service to Total General General Fiscal Debt Governmental Governmental Year Principal Interest (1) Service (2) Expenditures Expenditures 1994 $ $ 194 989 $ 194 989 $ 19 053 562 1 0% 1995 755 000 384 661 1 139 661 10 603 914 10 7 1996 785 000 351 089 1 136 089 10 610 366 10 7 1997 820 000 315 901 1 135 901 10 836 011 10 5 1998 855 000 277 825 1 132 825 10 034,276 11 3 1999 895 000 241 329 1 136 329 10 843 083 10 5 (1) Excludes bond issuance and other costs (2) Debt service on revenue bonds Includes general fiend only -42 VILLAGE OF KEY BISCAYNE FLORIDA RATIO OF NET BONDED DEBT TO ASSESSED VALUE AND PER CAPITA Ratio of Net Net Bonded Bonded Net Debt to Debt Fiscal Assessed Bonded Assessed Per Year Population Value (1) Debt (2) Value Capita 1994 8 887 $ 1 560 057 130 $ 9 200 000 0 59% $ 1 035 1995 8 894 1 741 921 584 8 445 000 0 48 949 1996 8 886 1 767 457 005 7 660 000 0 43 862 1997 8 937 (3) 1 861 243 132 6 840 000 0 37 765 1998 9 471 (4) 2 003 049 232 5 985 000 0 30 632 I999 9689 (5) 2 218 174 208 22 290 000 1 1 2 300 (1) Net bonded assessed actual value oftnrable property (2) Net bonded debt represents revenue bonds (3) As of April 1997 University of Florida Economic and Business Research (4) As of April 1998 University of Florida Economic and Business Research (5) As of July 1999 University of Florida Economic and Business Research -44 VILLAGE OF KEY BISCAYNE FLORIDA PROPERTY VALUE CONSTRUCTION AND BANK DEPOSITS Residential Commercial Total Fiscal Permits # of Year Issued Umts Valuation 1992 35 25 $ 638 483 # of Umts Valuation Total of Construction (000s Omitted) County Bank Deposits (1) Village Bank Deposits (2) 10 $ 401 058 $ 1 039 541 $20 282 998 $ 1993 4 383 673 1994 45 567 390 1995 2 099 661 1996 1 231 097 1997 667328 1998 3 002 2 879 129 200 900 106 3 176 031 1999 2 711 1 073 94 287 095 295 56 792 994 1737 1633 2 205 2 081 2 857 2 568 3 171 3 060 3 570 3 402 26 822 424 104 25 410 312 124 33 820 503 289 65 318 655 111 82 481 700 168 31 206 097 18 146 647 70 977 702 17 524 140 35 920 164 17 938 762 66 549 752 14 561 654 83 149 028 34 664 829 132 376 931 151 080 089 36 659 805 347 178 39 633 149 377 060 (1) State of Honda, Division of Banking as of June 30 of each respective year Information is for Miami Dade County Much the Village of Key Biscayne is a part of Information is not available for the Village of Key Biscayne alone. (2) Deposits within Village of Key Biscayne hunts Information for all years presented was not available Note Village began operations during fiscal year 1992 -46 VILLAGE OF KEY BISCAYNE FLORIDA MISCELLANEOUS STATISTICAL DATA SEPTEMBER 30 1999 Date of Incorporation Form of Government Area Miles of Street Fire Protection Number of Stations Police Protection Number of Stations Education 1991 Council Manager 1 2 Square Miles 20 2 Linear Miles 1 Attendance Centers 2 Number of Students 1 344 Number of Teachers 89 Miami -Dade County Water & Sewer Authority Number of Customers Average Daily Consumption 2 019 650 000 gallons Sewers Number of Customers 989 Fire Hydrants 233 Building Permits Issued 2 711 Recreation and Culture Number of Parks 3 Number of Libraries 1 (Operated by Miami Dade County) Number of Tenms Centers 1 Number of Recreational Centers 1 Employees Full Time 92 -48 COMPLIANCE SECTION Rachlln Cohen & Holtz LLP Certified Public Accountants & Consultants Report of Independent Certified Public Accountants on Compliance and on Internal Control over Financial Reporting Based on an Audit of Financial Statements Performed m Accordance with Government Auditing Standards Honorable Mayor Village Council and Village Manager Village of Key Biscayne Florida We have audited the general purpose financial statements of the Village of Key Biscayne Florida (the Village) as of September 30 1999 and for the year then ended and have issued our report dated February 1 2000 We conducted our audit in accordance with generally accepted auditing standards and the standards applicable to financial audits contained m Government Auditing Standards issued by the Comptroller General of the United States Compharce As part of obtaining reasonable assurance about whether the Village s financial statements are free of material misstatement, tse performed tests of its compliance with certain provisions of laws regulations contracts and grants non-compliance with which could have a direct and material effect on the determination of financial statement amounts However providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly we do not express such an onuuon The results of our tests disclosed no instances of non-compliance that are required to be reported under Government Auditing Standards Internal Control over Financial Reporting In planning and performing our audit, we considered the Village s internal control over financial reporting m order to determine our auditing procedures for the purpose of expressmg our opinion on the financial statements and not to provide assurance on the internal control over financial reporting Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control over financial reporting that might be material weaknesses A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements 1/1 amounts that would be material in relation to the 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 over financial reporting and its operation that we consider to be material weaknesses -49 One Southeast Third A\ enue Tenth Floor Miami Florida 331,1 Tel 305 377 4228 Fax 303 377 8331 Offices in Miami Ft Lauderdale Boca Raton West Palm Beach Stuart www rchcpa corn M mber S mmtIntern tonal Assoc tes Inc th ff es m pump lcites thro gh tth Id M mb fth Amerce Institute fCerhfi dPublic Acc untants and mbe tth Fl d Inshtut fCertf nPubh A untants Honorable Mayor Village Council and Village Manager Village of Key Biscayne Florida Page Two However we noted other matters that we have reported to management m the schedule of findings accompanying this report This report is intended solely for the information and use of the Mayor Village Council management and the Auditor General of the State of Honda and is not intended to be and should not be used by anyone other than these specified parties However this report is a matter of pubhc record and its distribution is not limited gede. sit, 4Wret 1'6p Mimi Honda February 1 2000 50 Rachlln Cohen & Holtz LLP Certified Public Accountants & Consultants Management Letter m Accordance with the Rules of the Auditor General of the State of Florida Honorable Mayor Village Council and Village Manager Village of Key Biscayne Flonda 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 1999 and have issued our report thereon dated February 1 2000 We conducted our audit in accordance with generally accepted auditing standards and the standards applicable to financial audits contamed m Government Audztng Standards issued by the Comptroller General of the United States In connection with our audit of general purpose financial statements of the Village for the year ended September 30 1999 we report the following m accordance with Chapter 10 550 Rules of the Auditor General, Local Government Ennty Audits which requires that this report specifically address but not be limited to the matters outlmed m Rule 10 554(1)(e) 1 No inaccuracies irregularities shortages defalcations or violations of laws rules regulations and contractual provisions were reported m the preceding annual financial audit 2 The Village during fiscal year 1999 was not m a state of financial emergency as defined by Flonda Statutes 218 5030) The Village has no deficit fund balances 3 Recommendations made m the preceding annual financial audit have been implemented except as reported m the schedule of findings accempanym • this report 4 Recommendations to improve the Village s present financial management and accounting procedures are accompanying this report m the schedule of findings 5 During the course of our audit, nothing came to our attention that caused us to believe that the Village a. Was m violation of any laws rules or regulations b Made any illegal or improper expenditures c Had improper or madequate accounting procedures other than those noted m the schedule of findings accompany this report 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 or defalcations 51 One Southeast Third A enue Tenth Floor Miami Honda 33131 Tel 305 377 4228 Fax 303 377 8331 Offices m Miami Ft Lauderdale Boca Raton West Palm Beach Stuart wwwrchcpa com Member fSurmmt lnt mah al Associates In wth tf esmpnnapaiclues thr tth orid M mber fth Am ca Institut fCertified P bh A nntants dmembe fth A dalnst tut fCerbfi dPubl Accowta is Honorable Mayor Village Council and Village Manager Village of Key Biscayne Flonda Page Two 6 The annual financial report for the year ended September 30 1999 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 penod 7 The Village was mcorporated by Laws of Flonda 90 142 This report is intended solely for the information and use of the Mayor Village Council management, and the Auditor General of the State of Flonda and is not mtended to be and should not be used by anyone other than these specified parties However this report is a matter of public record and its distribution is not imuted £es44- SL_ .- ,Wrif z -c -p Mianu Flonda February 1 2000 52- VILLAGE OF KEY BISCAYNE FLORIDA SCHEDULE OF FINDINGS FISCAL YEAR ENDED SEPTEMBER 30 1999 I CURRENT YEAR COMMENTS AND RECOMMENDATIONS 1 New Pronouncement Governmental Accounting Standards Board Statement No 34 Basic Financial Statements — and Management s Discussion and Analysis — for State and Local Governments establishes new financial reporting requirements for state and local governments throughout the United States When implemented it will create new information and will restructure much of the information that governments have presented in the past These new requirements were developed to make annual financial reports more comprehensive and easier to understand and use The new reporting model will include government wide financial statements as well as fund financial statements as well as management s discussion and analysis section Implementation will be required for the fiscal year ending September 30 2004 However many of the reporting requirements need to be addressed several years before the required implementation date We recommend that the Village review the new requirements and plan accordingly II PRIOR YEAR RECOMMENDATIONS NOT IMPLEMENTED IN CURRENT YEAR 1 Compensated Absences The recordkeepmg function for compensated absences (vacation, sick and compensatory time) is handled by the responsible departments (general employees police and fire) Each year that we perform our audit procedures on compensated absences we noted that the Village incurred recordkeepmg difficulties This is primarily caused by the decentralized recordkeepmg (i e each department maintains their own records and their own format) There is a significant hability for compensated absences which will continue to increase over the years therefore accurate records and procedures are essential to monitor these activities Recommendation We recommend that the recordkeepmg function for compensated absences for all departments be centralized The Village s policies and procedures to accumulate earned compensated absences should be revised so that centralized recordkeepmg can properly control and account for compensated absences Management s Response and Current Status The Village has still not centralized the recordkeeping of the compensated absences -53