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HomeMy Public PortalAboutComprehensive Annual Financial Report Fiscal Year Ended 09-30-00.tifL ihteclid r boax VILLAGE OF KEY BISCAYNE FLORIDA COMPREHENSIVE ANNUAL FINANCIAL REPORT FISCAL YEAR ENDED SEPTEMBER 30 2000 Prepared by THE FINANCE DEPARTMENT ,:.] = 1= r= f`"7 = © ® = =1 L J L--1 CU L- 7 f VILLAGE OF KEY BISCAYNE, FLORIDA COMPREHENSIVE ANNUAL FINANCIAL REPORT FISCAL YEAR ENDED SEPTEMBER 30 2000 TABLE OF CONTENTS PAGE ROW I INTRODUCTORY SECTION Letter of Transmittal Village Officials Certificate of Achievement for Excellence in Financial Reporting Village Organizational Chart II FINANCIAL SECTION 1 an mu REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS 1 GENERAL PURPOSE FINANCIAL STATEMENTS (COMBINED STATEMENTS OVERVIEW) Combined Balance Sheet All Fund Types and Account Groups 3 Combined Statement of Revenues Expenditures and Changes in 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 Enterprise Funds 6 Combined Statement of Cash Flows Enterprise 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 Combmmg Statements of Revenues Expenditures and Changes in Fund Balances 28 ENTERPRISE FUNDS Combmmg Balance Sheets 29 Combining Statements of Revenues Expenses and Changes m Retained Earnings 30 Combining Statements of Cash Flows 31 VILLAGE OF KEY BISCAYNE, FLORIDA TABLE OF CONTENTS II FINANCIAL SECTION PAGE ACCOUNT GROUPS GENERAL FIXED ASSETS ACCOUNT GROUP Schedule of General Fixed Assets By Source 32 Schedule of General Fixed Assets By Function and Activity 33 Schedule of Changes in General Fixed Assets By Function and Activity 34 GENERAL LONG TERM DEBT ACCOUNT GROUP Schedule of General Long -Term Debt 35 III STATISTICAL SECTION General Governmental Expenditures by Function 36 General Governmental Revenues by Source 37 Utility Tax Revenue By Source Franchise Fee Revenue by Source 38 Property Tax Levies and Collection 39 Assessed and Estimated Actual Value of Taxable Property 40 Property Tax Rates Direct and Overlapping Governments 41 Ratio of Annual Debt Service Expenditures for Net Bonded Debt to General Governmental Expenditures 42 Schedule of Direct and Overlapping Debt General Obligation Bonds 43 Ratio of Net Bonded Debt to Assessed Value and Per Capita 44 Demographic Statistics 45 Property Value Construction and Bank Deposits 46 Principal Taxpayers 47 Miscellaneous Statistical Data 48 IV COMPLIANCE SECTION Report of Independent Certified Public Accountants on Compliance and on Internal Controls over Financial Reporting Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards Management Letter in Accordance with the Rules of the Auditor General of the State of Flonda 49 51 Schedule of Findings 53 0 C 0 0 0 C C C E C C C 7 p. L L, 40. r INTRODUCTORY SECTION L T1 = I 1 C'n l l Lc] CI 771 Cl Cl [El [ Erl I-1 L l I J L] L -J L 1 rg 9 - Office of the Village Manager V ilag Cou al J I Ras My Martha Fde Leon B o cek Ir May Scow Bas Alan H Fe n M tin F d G e ory C Ha Rob rr Oldakow kr V llag Manag CSm iKisin Honorable Mayor Members of the Village Council and Citizens of the Village of Key Biscayne The Comprehensive Annual Financial Report of the Village of Key Biscayne for the fiscal year ended September 30 2000 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 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 gain an understanding of the Village s financial activities have been mcluded The Comprehensive Annual Financial Report (CAFR) is presented in four sections The introductory section includes this transmittal letter the Village s organizational chart a list of principal officials and the 1999 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 individual 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 Governmental Accounting Standards and Rules of the Auditor General of the State of Flonda Reporting Entity and its Services The Village includes for financial reporting purposes in conformance with Governmental Accounting Standards Board (GASB) Statement Number 14 all funds 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 STATEMENT TO PRO\ IDE A SAFE QUALITY COMMUNITY ENVIRONMENT FOR ALL ISLANDERS THROUGH RESPONSIBLE GObERNME\T Honorable Mayor Village Council and Citizens Village of Key Biscayne 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 Village Manager Village Clerk Village Attorney and members of various advisory boards As Chief Administrative Officer the Village Manager is responsible for carrying out the policies and ordinances of the Village Council for overseeing the day to day operations of the Village and appointing and supervising the department heads of the N. illage Location, Village Size, and Population The Village of Key Biscayne is located on Key Biscayne 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 To the south Bill Baggs Cape Florida State Recreation Area, a park of approximately 415 acres borders the Village To the north Crandon Park a 960 acre park administered by Miami Dade County The Village currerit'Iy aids an areal of approximately 1.25'square miles and population estimated at 9 500 year round and 4 000 seasonal residents Major Initiatives For the Year The Village s staff following specific directives from the Village Council has been actively Involved in a variety of projects designed to provide the Island s residents with the best environment through responsible government During fiscal year 2000 the most notable examples of the Village s efforts included contmumg improvements and additions to the Village s infrastructure beautification projects designed %o further enhance the Village s specific style and character public safety enhancements an improved flood insurance community rating initiation of a community emergency response team program adoption of a new 20 MPH speed limit ordinance and finally the purchase of land upon which the Village will construct a Civic Center complex During fiscal year 2000 many improvements and additions to the Village s public infrastructure were completed Special attention is deserving for the East Enid Drive Improvement Project Crandon Boulevard Improvement and Lighting Project Beautification with the addition of more Traffic Calming devices and construction of Ocean Park Phase I The first project East Enid Drive included repaving the twenty foot wide driving lanes adding brick 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 of the road from the Lake Park east to the future site of the Ocean Park In addition the U U U U U U EI U U U U L 11 Honorable Mayor Village Council and Citizens Village of Key Biscayne project added two elevated traffic calming/ pedestrian crossing devices installed a new drainage system and provided accent path lighting at crosswalk areas and along the promenade east of Ocean Drive Crandon Boulevard Improvement and Lighting Projects consisted of up lighting for three medians at the Village entrance installation of lighting along Ocean Lane Drive and the two Crandon Boulevard medians as well as the Lake Park located at the intersection of East Enid Drive and Crandon Boulevard Beautification of the Village continued with the addition of more traffic calming devices on West Heather Drive A recent Miami Herald news article referred to Crandon Boulevard as tastefully landscaped A three tier illuminated fountain w as approved by Council resolution and constructed at the intersection of West Mashta Drive and Harbor Drive Key Biscayne s Beautification efforts were recognized by the national publication 2000 Stokes Tropicals Plant Guide Traffic calming is a simple street modification that causes a motorist to drive with increased care Traffic calming addresses the speeding of vehicles security and safety of pedestrians and beautification of the street 10.1 Ocean Park Phase I combines the unparalleled beauty provided by the Atlantic Ocean and the Key Biscayne beach, which is undeniably the Village of Key Biscayne s greatest asset The intent of the Beach Park Plan is to achieve simplicity by design and to provide access for Village Residents to our greatest amenity With this understanding the plan of the Village Beach Park concentrates most of the activity along the beach leaving the remaining park in a passive natural design To facilitate construction and meet state coastal permitting deadlines the project was divided into two phases Phase 1 consists of the palm plaza a trellised pavilion landscaping and retaining walls and water and sewer hook ups A very positive development for the Village s residents and property owners was the verification received from the National Flood Insurance Community Rating System The Village of Key Biscayne has naw been officially notified by the Federal Emergency Management Agency (FEMA) that it has been verified as a class 6 community in the National Flood Insurance Community Rating System This means that flood insurance policies issued or renewed as of April 2000 have received a 20 percent discount Key Biscayne currently stands third statewide in the ratmg system with only Sanibel and Juno Beach enjoying better ratings This reflects upon the excellent design of the Village s stormwater management system An important program instituted in prior years and during fiscal year 2000 received many improvements The program is the Community Emergency Response Team (C E R T) A group of ten to fifteen members C E R T is framed to prepare for and respond after a disaster Last fall a second team of members from the Village participated m an accelerated training program that culminated in a countywide drill with other teams from Miami Lakes and South Dade Recently both teams participated in an eight hour refresher course and combined training exercise Additional courses are scheduled throughout future months ui 7 Honorable Mayor Village Council and Citizens Village of Key Biscayne All residents and visitors to Key Biscayne will benefit with the adoption of a new speed ordinance After investigation by the Police Department it was demonstrated that a speed of twenty miles per hour is a reasonable speed for all local streets within the residential districts of the Village excluding Crandon Boulevard Ordinance 2000 2 adopted March 14 2000 established a twenty mile per hour speed limit for the residential streets of the Village Finally fiscal year 2000 was also a year in which significant progress was made in the area of the Village Civic Center The most important development that took place during the fiscal year was the purchase contract for one of two parcels of land needed for the center The Village was successful m closing on the 560 Crandon Boulevard site for a sum of $3 207 835 Another contract for the SunTrust Bank executed m December 1998 had ended its due diligence period in April 1999, with no recommendation to terminate the agreement Closing on that contract shall take place at the tune of the new bank building s opening presently anticipated to be in October 2001 Ground has been broken on the new hank For the Future Village of Key Biscayne residents can be assured that during the fiscal year 2001 their government will continue to provide them with more and better services For instance Building Zoning &. Plannmg Department will prepare a landscape ordinance for new single family and duplex homes It is envisioned that the new ordinance will create a more tropical appearance screening between homes and additional shade This department will continue to improve the quality of services offered to our citizens During fiscal year 2001 the Village intends to place the building permit system on the Internet This will enable citizens and contractors to track the status of plans permits and mspections The department is storing plans on CD ROMS This enables retrieval of plans and printing of copies in the Building Zoning & Planning office Keeping with the improvement theme the Public Works DepaiLatent will also be involved in numerous infrastructure improvements in the FY 2001 Major projects for 2001 include expansion of the sidewalk program to other streets around the school to be selected after a comprehensive study is completed develop a Master Plan for Crandon Boulevard development of the second phase of Ocean Park and a beach renounshment project In addition Public Works will continue to oversee the contracts awarded for solid waste collection street sweeping and catch basin cleaning and maintenance as well as all Village landscaping and maintenance contractors Important m maintaining and enhancing of the Villagers unique lifestyle are the activities of the Recreation Department During the fiscal 2001 the Department will continue to offer a swimming program at the Miami' Rowing and Water Sports Center Also the department has increased efforts to meet' the ndeds of Key Biscayne s senior population. Working with Keep Seniors on Key Biscayne Contiinttpe (KSOKB) the departme t is developing a program that will meet the information recreation and service needs of this valued population Participation in the Key Biscayne Athletic Club activities iv E U 0 U U U Honorable Mayor Village Council and Citizens ['w Village of Key Biscayne continues to increase as well as the number of programs they provide hi fiscal year 2001 activities created in fiscal year 2000 such as basketball and flag football camp will be continued and improved. The department will also continue to host the followmg special events Halloween Weekend Celebration Key Biscayne Lighthouse Run & Walk Concert Series Wmterfest Spring Egg Hunt and the Fourth of July Fireworks The Department continues to assist civic groups with their special events as well contract with outside agencies to provide additional programs and facilities The Department shall finalize planning for the new Community Center 51. 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 FY 2000 to the library the facility will provide an additional 25 hours per week of operation including Sundays between October and May The Village s Police Department is also anticipating that fiscal year 2001 will be the most productive A number of safety and drug abuse resistance programs are taught to students in all the Village s schools as well as pedestrian safety The Stranger Danger and bicycle helmet presentations are two of the most popular among residents The Department recently received a national award for the video "StreetWise which emphasized bicycle and rollerblade safety A new gun safety program will be added to the long list of programs already offered by the Depaitnient m order to protect all residents especially the children Patrol officers will increase the checking of businesses at night watching for unlocked doors and open windows Community Onented Policing (COP) officers conduct door to door visits of businesses and residences providing cnme prevention information hurricane preparedness pamphlets registering bicycles and conducting secunty surveys which will increase dunng fiscal year 2001 As always new residents will continue to receive welcome baskets from the Chamber of Commerce delivered by police officers Departmental Focus Each year the City will focus attention on the efforts and accomphshments of a selected department This year the Fire Rescue Department has been selected for this purpose The Department is composed of a Fire Chief a Deputy Fire Chief an Administrative Assistant and three shifts of Fire Rescue personnel Each shift is comprised of a Fire Captain a Fire Lieutenant and eight firefighter/paramedics All members of the Department work towards a common goal to contnbute to a safe quality community environment for all citizens through responsible fire rescue services The Fire Rescue Department s primary responsibilities are general fire suppression and emergency lE medical response r 0 Honorable Mayor Village Council and Citizens Village of Key Biscayne U The Department is also responsible for citizen blood pressure monitoring citizen CPR classes first aid classes dive rescue capability and trench rescue and community fire and accident prevention public education programs All sworn personnel under the rank of Deputy Chief are state certified paramedics the only Department m Miami Dade County with this distinction On September 10 1998 the Board of Directors for the Commission on Fire Accreditation International awarded the Village Fire and Rescue Department International Accredited Agency Status making the Department the tenth m the world and the first in the state of Florida to achieve this recognition On August 26 1999 at the semi annual commission meetmg held in Kansas City Missouri the full commission voted unanimously to accept the Depai intent s Statement of Findings on the Annual Compliance Report thus *continuing the Department s Accredited Agency Status In addition the Insurance Services Organization (ISO) conducted a site visit of the Village Fire Rescue Department Following this site visit, the ISO notified the Village that upon completion of their evaluation of the public protection classification for the Village that the protection class had been improved and upgraded from a Class 4 to a Class 3 Surveys of the community by the Chamber of 'Commerce Florida International University and the Fire Department show the tremendous level of citizen, satisfaction with the Depai lu ent, In the survey cpnducted by the Department where questions were asked such as quality ofiiCare , pr ifessionahsm f procedures being explained, and the level of concern andtarmg shown, not only to the+patient but to the family as well the results indicated a 97 2% excellent -to outstanding level of customer satisfaction 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 departmental level Expenditures that could result in an overexpended 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 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 provide reasonable assurance of proper recording of financial transactions L P L r L Honorable Mayor Village Council and Citizens Village of Key Biscayne Reporting 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 Auditor General of the State of Florida 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 in this fund General operating expenditures fixed charges and capital improvement costs not accounted for through other funds are accounted for in the General Fund The amount of General Fund revenues and expenditures from various sources are shown in the following schedule REVENUES (GAAP Basis) Sources Property Taxes Utility Taxes Franchise Fees Intergovernmental Licenses and Permits Charges for Services Other Interest Grants Total Revenues leas L L FY 2000 FY 1999 $ 7 799 633 $ 7 012 714 1 723 902 1 621 473 729 998 740 031 889 704 807 924 1 316 641 668 672 224 177 457 828 560 22 057 315 399 231 820 124,375 815 116 Net Changes Change $ 786 919 11% 102 429 6 (10 033) (1) 81 780 10 647 969 97 (233 651) (51) (21 497) (97) 83 579 36 (690,741) (85) $13 124,389 $12 377,635 $ 746.754 6% VII U El1 Honorable Mayor Village Council and Citizens Village of Key Biscayne EXPENDITURES AND TRANSFERS (GAAP Basis) Function General Government Public Works Buildmg Zoning & Planning Parks and Recreation Public Safety Debt Service Non Departmental Capital Outlay Transfers to Capital Improvement Fund Capital Protects Fund FY 2000 $ 1 068 710 830 3¢0 1 227 696 380 502 6 068 147 1 530 767 694 643 274 078 1,000,000 $13 074,903 FY 1999 Net Changes Change $ 914479 $ 154231 730,521 99 839 1 058 831 168 865 293 664 86 838 5 644,903 423 244 1 136,327 394 440 672 708 21 935 391 650 (117 572) 1,017,430 (17,430) $11 860 513 $1 214, 390 17% 14 16 30 7 35 3 (30) (2) 10% During 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 adm'imstration offices for the Village of' Key Biscayne Funding for this project is from a series 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 finds are 1 Stormwater 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 obtamed 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 hired to design the system Plans and specifications have been completed and approved by all appropriate agencies viii U El 0 r^ n E El E El r L C C Honorable Mayor Village Council and Citizens Village of Key Biscayne Fiduciary Fund The Fiduciary Fund type is a Trust and Agency Fund established for the purpose of accounting for assets held in a trustee capacity or as an agent for individuals private organizations and other governments As of September 30 2000 the Pension Trust Fund 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 The Plan also receives funding from the State of Florida under F S 175 and 185 The net assets in the Plan as of September 30 2000 were approximately $1 400 000 Other Plans Administered by the Village A 401(a) money purchase plan is offered by the Village for its employees and was created m accordance with Internal Revenue Code Section 401 The plan is managed by independent plan administrators and permits uiiployees to defer a portion of their salary until future years The Village does not have a fiduciary responsibility over the Plan assets therefore it is not included in the Village financial statements but is included as a footnote disclosure The 401(a) fund had approximately $5 000 000 in net assets as of September 30 2000 60, Also employees may contribute to a Section 457 Plan which was created in accordance with Internal Revenue Code Section 457 The Plan managed by an independent plan administrator permits employees to defer a portion of their salary until future years Net assets of the 457 Plan as of September 30 2000 were approximately $2 300 000 In accordance with GASB Statement No 32 and because the Village does not have fiduciary responsibility over the assets of this plan the Village does not report this Plan in their financial statements and no disclosure is required 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 nor does it record infrastructure assets such as 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 2000 the general fixed assets acquired amount to approximately $25 110 000 Major additions for fiscal year 2000 were for public safety equipment and vehicles ix FR RI Cu. Honorable Mayor Village Council and Citizens Village of Key Biscayne Debt Administration The Village of Key Biscayne has three outstanding obligations 1) a 10 year $9 200 000 Land Acquisition Revenue Bond which was issued on December 20 1995 at 4 36% from Northern Trust Bank to purchase land for the Village Green The outstanding balance at September 30 2000 was $4 155 000 2) $7 200 000 m Stormwater Utility Notes were issued January 26 1999 from Bank of America at 4 13% for 20 years The outstanding balance at September 30, 2000 was $6 940 000 3) a $10 000 000 Land Acquisition and Capital Improvement Revenue Bond Senes 1999 at 4 715% for 20 years to purchase land and construct the Village Civic Center The bond was issued through Bank of America The outstanding balance September 30 2000 was $10 000 000 Cash Management The Village has several cash management vehicles and investment accounts or money market accounts in SunTrust and Northern Trust Banks under agreements which provided for overnight investments of both the investment accounts and the operating 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 2000 had a balance of $192 879 in the General Fund and $344 512 for the Law Enforcement Trust Fund, $3 795 in the Capital Improvement fund $1, 677 618 m the Civic Center Fund $922 004 in the Stormwater Fund $25 930 in the Solid Waste Fund Risk Management The Village is insured with the Flonda Municipal Insurance Trust for liability and property coverage and with the Flonda Municipal Self Insurance Fund for Workers Compensation coverage The liability 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 in Financial Reporting to the Village for its Comprehensive Annual Financial Report for the fiscal year ended September 30 1999 The Village has received this award each year since its first published CAFR in 1992 The Government Finance Officers Association of the United States and Canada (GFOA) also presented an award for Distinguished Budget Presen ation to the Village of Key Biscayne for its annual budget for the fiscal year beginning October 1 1999 This 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 policy document as an operations guide as a finanbial plan and as a communications device x El EL U 0 U U n r P Honorable Mayor Village Council and Citizens Village of Key Biscayne The awards are valid for a penod of one year only We believe our current CAFR and budget continue to conform to program requirements and we have submitted them to the GFOA to determine their eligibility for fiscal year ended September 30 2000 Acknowledgments The preparation of this report could not have been accomplished without the efficient and dedicated services of the staff of the Village We express our appreciation to all members of the staff who assisted and contributed to the preparation of this report A special note of thanks and appreciation is also extended to the firm of Rachlin Cohen & Holtz LLP for their professional approach and high standards in conduct of their independent audit of the Villages financial records and transactions Respectfully submitted /Sol( C Samuel Kissinger Village Managec -X1- VILLAGE OF KEY BISCAYNE, FLORIDA VILLAGE OFFICIALS SEPTEMBER 30 2000 VILLAGE COUNCIL Joe I Rasco Mayor Martha Fdez Leon Broucek Vice Mayor Scott Bass Gregory C Han Alan H Fein Mortimer Fried Robert Oldakowski VILLAGE MANAGER C Samuel Kissinger VILLAGE CLERK Conchita H Alvarez CMC VILLAGE ATTORNEY Weiss Serota & Helfinan P A FINANCE DIRECTOR Moyer & Associates/Severn Trent Services VILLAGE AUDITORS Rachlin Cohen & Holtz LLP Certified Public Accountants & Consultants 0 U E.7 0 tS L L Xn VILLAGE OF KEI BISCAYNE, FLORIDA 7 C C C Certificate of Achievement for Excellence in Financial Reporting Presented to village of Key Biscayne, Florida For its Comprehensive Annual Financial Report for the Fiscal Year Ended September 30, 1999 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 resident l/ Executive Director Rill r r i r j r i r ri ® r. i = [T] Organizational Chart RESIDENTS OF KEY BISCAYNE Village Council (7) Local Planning Agency Village Clerk (1.5) Department of Building, Zoning and Planning (11) Special Master (3) Village Manager (2) Village Attorney Assistant to the Manager (1) Polce/Fve Retirement Board (5) Department of Emergency Services (71.5) Fire Rescue Police Department of Recreation (3) Special Events Sports and Athletics Programs and Tours Department of Public Works (2) Village Engineer Contract Supervisor Strmwater Management_, Refuse Collection and Recycling Maintenance Department of Finance and Administrative Services (2) Finance/ Accounting., XIV ®® Lai t. I t 1® t_. --J r t J t_. 7 rT t t :. i LU I. h FIN ANCIAL SECTION I L k 4 F Y L „i +L - i A € a L i L I t _J L_ _ L J t Ili 1. '-nL J I w r] ri L "I I_ 11-1 ETTIJ ri F-1 7-1 Cl L__1 I] Fmt Rachlin Cohen & Holtz LLr Certified Public Accountants & Consultants REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS Honorable Mayor Village Council and Village Manager Village of Key Biscayne Florida We have audited the accompanying general purpose financial statements of the Village of Key Biscayne Florida (the Village) as of and for the year ended September 30 2000 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 the standards applicable to financial audits contained in Govenunent 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 includes examining 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 financial 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 material respects the financial position of the Village as of September 30 2000 and the results of its operations and the cash flows of its proprietary fund type for the year then ended in conformity with generally accepted accounting principles In accordance with Government Auditing Standards we have also issued a report dated December 8 2000 on our consideration of the Villages internal control over financial reporting and our tests of its compliance with certain provisions of laws regulations contracts and grants That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit Our audit was conducted for the purpose of forming an opinion on the general purpose financial statements taken as a whole The accompanying combining individual fund and account group statements and schedules as listed in the table of contents and the required supplementary information on 4'^ 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 applied in the audit of the general purpose financial statements and, in our opinion is fairly presented in all material respects in relation to the general purpose financial statements taken as a whole Stab 1 One Southeast Third Avenue Tenth Floor Miami Florida 331o1 Tel 305 377 4228 Fax 305 377 8331 Offices in Miami Ft Lauderdale Boca Raton West Palm Beach Stuart www.rchcpa coin Member fSummit lntemah !Associates In with lie mpnn p I h the ho tth orld Member f th Amen Inshtut f cern5 d P bh Accountants and member fth Fl d Institute f C rhfaed P NIA unrants an ra.A t o .7 Cv i i [ 1 I. J [ .1 L_.__I L J L L_-1 L-1 L- Honorable Mayor Village Council and Village Manager Village of Key Biscayne Florida Page Two imam The information shown in the statistical section listed in 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 opinion thereon £e14 64- r Aire{ LLP Miami Florida December 8 2000 7 L. r r - E 2 L I I._ A 14 7^ In r r GENERAL PURPOSE FINANCIAL STATEMENTS (Combined Statements - Overview) r L Ii 7"1 i^7 ii L'-1 1-1 C-1 7-1 CT7 cii CI Fill Li f ] L _l L J I 1 L_ 7 f [ I F 1 I I I I I l I 1 f I r1 VILLAGE or KEY BISCAYNE FLORIDA I I I -7 COMBINED BALANCE SHEET ALL FUND TYPES AND ACCOUN I GROUPS SEPTEMBE R 30 2000 (WITH COMPARATIVE TOTALS FOR SEl TE MDLR 30 1999) Governmental Proprietary Fiduciary Account Fund Ty pes Fund nines Fund Tvne Grouna Trust General General Totals Capital a nd Fixed L ong Term (Memorandum Onlyl General Protects Fntem nse Agency Assets Debt 29.04 1999 ASSETS AND OTHER DRBIT$ Cash and cash equivalents $ 3 208 836 $ 1 750 315 $ 1 435 420 $ 361 $ $ $ 6 394 932 $ 5 781 531 Inv estm ents 884 890 8 324 145 1 305 020 10 514 055 14 099 629 D ue fro m other funds 83 978 83 978 318 792 Property taxes receivable 19 241 19 241 55 299 O ther receivables 385 899 370 768 122 747 128 398 1 007 812 559 972 Capitalized loan fees an d interest 186 018 186 018 43 962 Fixed assets net 9 616 532 25 151 069 34 767 601 29 819 736 Amount to be provided for retirement of general long term debt 15 381 589 15 387 589 16 138 654 Total assets and other debits $ 4 582 844 $ 10 445 228 $ 11 360 717 $ 1433 779 $ 25 151 069 $ 15 387 589 $ 68 361 226 $ 66 817 575 LIABIlITIES EMUITY AND OTHER CREDITS Liabilities Acco unts payable and accrued liabilities $ 366 563 $ 195 515 $ 4 189 $ $ $ $ 566 267 $ 580 573 Retamage payable 45 293 Deposits and performance bonds 46 454 46 454 5 915 Due to other funds 50 490 33 488 83 978 318 792 Revolving loan 865 818 865 818 723 762 Rebatable arbitrage 97 165 97 165 Compensated absences payable 1 135 424 1 135 424 1 048 654 Revenue bonds payable 6 940 000 14 155 000 21 095 000 22 290 000 Total liabilities 413 017 246 005 7 843 495 15 387 589 23 890 106 25 012 989 Equity and other credits Investment in general fixed assets 25 151 069 25 151 069 19 949 285 Contributed capital 2 682 901 2 682 901 2 682 901 Retained earnings 834 321 834 321 880 962 Fund balance Reserved 3 854 827 10 199 223 1 433 779 15 487 829 17 891 333 Unreserved Designated 315 000 315 000 400 105 Total equity and other credits 4 169 827 10 199 223 1 517 222 1 433 779 25 151 0(9 44 471 120 41 804 586 Total liabilities equity and other credits $ 4 582 844 $ 10 445 228 $ 1 1160 717 $ 1433 779 $ 2S 151 069 $ 15 387 589 $ 68 361 22( $ 66 817 575 See no tes to general purpo se (Menem) statem ents 3 VILLAGE OF KEY BISCAYNE FLORIDA COMBINED STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES ALL GOVERNMENTAL FUND TYPES FISCAL YEAR ENDED SEPTEMBER 30 2000 (WITH COMPARATIVE TOTALS FOR FISCAL YEAR ENDED SEPTEMBER 30 1999) Revenues Property taxes Utility taxes Franchise fees Intergovernmental Licenses and permits Charges for services Other Interest Grants Total revenues Expenditures Current General government Public works Building zoning and planning Parks and recreation Public safety Nondepartmental Capital outlay Debt Service Prmcipal Interest Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses) Operating transfers m Operating transfers out Bond proceeds Total other financing sources (uses) Excess (deficiency) of revenues and other financing sources over expenditures and other fmancmg uses Fund balances, beginnmg Fund balances endmg General Fund Capital Projects Funds Totals (Memorandum Only) 2000 1999 $ 7 799 633 $ $ 7 799 633 $ 7 012 714 1 723 902 1 723 902 1621 473 729 998 729 99$ 740 031 889 704 889 704 807 924 1 316 641 1 316 641 668 672 224 177 224 177 457 828 227 633 315 9W 849 962 1 165 921 524,205 124 375 124 375 903 116 13 124 3?9 849 962 13 974,351 12 963 596 1 068 710 1 068 710 914 479 830 360 830 360 730 521 1 227 696 1 227 696 1058 831 380 5Q2 380 502 293 664 6 068 147 6 068 147 5 644 003 694 843 694 643 672 708 274 078 4 899 093 5 173 171 2 881 125 935 000 595 767 935 000 895 000 595 767 241 327 12 074 903 4 899 093 16 973 996 13 332 558 1 049 486 (4 049 131) (2 999 645) (368 962) (1 000 000) 1 000 000 1 000 000 1 017 430 (1 000 000) (1 017 430) 10 000 000 (1 000 000) 1 000 000 10 000 000 49 486 (3 049 130 (2 999 645) 9 631 038 4 120 341 13,248 354 17 368 695 7 737 657 $ 4 169 827 $ 10 199 223 $ 14 369 050 $ 17 368 695 See notes to general purpose fmancial statements -4- H 1 L C VILLAGE OF KEY BISCAYNE FLORIDA STATEMENT OF REVENUES AND EXPENDITURES BUDGET AND ACTUAL GENERAL FUND FISCAL YEAR ENDED SEPTEMBER 30 2000 P Revenues Property taxes Utility taxes Franchise fees Intergovernmental Licenses and permits Charges for services Interest Grants Total revenues Expenditures Current r' General government Public works _ Building zoning and plan/mg Parks and recreation Public safety i Non departmental Debt Service Pnncipal Interest Total expenditures r E r' r® Excess of revenues over expenditures Other financing sources (uses) Appropnation of pnor years fund balance expenditures of pnor year reserves Excess of revenues and other financing sources over expenditures and other financing uses Budgetary Basis Budget Actual $ 7 677 766 $ 7 799 633 1 700 000 1 723 902 843 425 729 998 900 000 889 704 53I 304 1 316 641 103 020 224 177 494 600 315 959 118 750 124 375 12 368 865 13 124 389 934 575 950 710 588 739 712 892 1 232 662 1 233 476 399 000 398 068 6 261 217 6 296 461 854 046 716 529 935 000 935 000 603 626 595 767 11 808 865 11 838 903 560 000 1 285 486 440 000 (236 000) Vanance Favorable (Unfavorable) $ 121 867 23 902 (113 427) (10 296) 785 337 121 157 (178 641) 5 625 735 524 (16 135) (124 153) (814) 932 (35 244) 137 517 7 859 (30 038) 725 486 (676 000) $ 1 000 000 $ 1 049 486 $ See notes to general purpose fmancial statements 5 49 486 VILLAGE OF KEY BISCAYNE FLORIDA COMBINED STATEMENT OF REVENUES EXPENSES AND CHANGES IN RETAINED EARNINGS ENTERPRISE FUNDS FISCAL YEAR ENDED SEPTEMBER 30 2000 (WITH COMPARATIVE TOTALS FOR FISCAL YEAR ENDED SEPTEMBER 30 1999) 2000 1999 Operating revenue $ 781 477 $ 750 040 Operating expenses General and admrmstrative costs 345 595 298 769 Depreciation 273 919 269 729 Total operating expenses 619 514 568 498 Operating income 161 963 181 542 Non operating revenue (expense) Interest income 84 194 63 160 Interest expense (292 798) (301 499) Total non operating expense (208 604) (238 339) Net loss (46 641) (56 797) Retained earnings beginning 880 962 937 759 Retained earnings ending $ 834 321 $ 880 962 See notes to general purpose financial statements 6 0 E IJ r L E E E ram VILLAGE OF KEY BISCAYNE FLORIDA COMBINED STATEMENT OF CASH FLOWS ENTERPRISE FUNDS FISCAL YEAR ENDED SEPTEMBER 30 2000 (WITH COMPARATIVE TOTALS FOR FISCAL YEAR ENDED SEPTEMBER 30 1999) 2000 1999 Cash flows from operating activities Operating income $ 161 963 $ 181 542 Adjustments to reconcile operating mcome to net cash provided by operating activities Depreciation 273 919 269 729 Changes in operating assets and liabilities (Increase) decrease in Accounts receivable (10 097) 517 902 Interest receivable (142 056) Due from other governments 8 562 Increase (decrease) in Accounts payable and accrued liabilities (77 991) (182 491) Retamage payable (11 750) Due to other funds 33 488 (470 237) 4� Total adjustments 65 513 143 465 Net cash provided by operating activities 227 476 325 007 L i E Cash flows from capital and related financing activities Payments for construction in progress Proceeds from revenue bonds Retirement of bond anticipation notes Payments on revenue bonds Net proceeds from revolving loan Interest paid Net cash used by capital and related fmancmg activities Cash flows from investing activities Interest received (20 000) (260 000) 142 056 (292 798) (279 762) 7 200 000 (7 200 000) (301 499) (430 742) (581 261) 84 194 63 160 Net decrease in cash and cash equivalents (119 072) (193 094) Cash and cash equivalents beginning 1 554 492 1 747 586 Cash and cash equivalents ending $ 1 435 420 $ 1 554 492 See notes to general purpose financial statements 7 VILLAGE OF KEY BISCAYNE FLORII)A STATEMENT OF CHANGES IN PLAN NET ASSETS PENSION TRUST FUND FISCAL YEAR ENDED SEPTEMBER 30 2000 (WITH COMPARATIVE TOTALS FOR FISCAL YEAR ENDED SEPTEMBER 30 1999) 2000 1999 ADDITIONS Contributions Plan member $ 479 749 $ 446 789 State 110,700 60 949 Total contributions 590 449 507 738 Investment earnings 74 462 59 353 Total additions 664 911 567 091 DEDUCTIONS Distributions 116 846 44 899 Refunds 5 877 Administrative expenses 37 029 17 799 Total deductions 153 875 68 575 Net increase 511 036 498 516 Net assets held in trust for pension benefits Beginning of year 922 743 424 227 End of year $ 1 433 779 $ 922 743 See notes to general purpose financial statements 8 13 E C C C C WES NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS r ki ew A. L En 1 r_ 1 E-7 [T -1 C 1 C l l 1 f 1 [ I I I L J l i l l t 1 VILLAGE OF KEY BISCAYNE FLORIDA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS SEPTEMBER 30 2000 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 r fama Litm 7 P L.. 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 prmciples The more significant of the Village s accounting policies are described below to assist the reader in interpreting 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 in 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 criteria 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 accounting 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 mamtamed consistent with legal and managerial requirements Account groups are a reporting device to account for certain assets and liabilities of the governmental funds not recorded directly in those funds 9 VILLAGE OF KEY BISCAYNE FLORIDA ti 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) The Village has the following fund types and account groups Governmental Fund Types Governmental funds are used to account for the Village s general governmental activities Governmental fund types use the flow of current financial resources measurement focus and the modified accrual basis of accounting Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual (i e when they are measurable and available) Measurable means the amount of the transaction can be determmed and available means collectible within the current period or soon enough thereafter to pay Iiabilities of the current period The Village considers all revenues available if they are collected within 60 days after year end Expenditures are recorded when the related fund liability is incurred except for unmatured pnncipal and interest on general long-term debt which is recognized when du; and certain compensated absences which are recognized when the obligations ate expected to be liquidated with expendable available fnancial,resources Taxes intergovernmental revenue licenses and interest are susceptible to accrual Sales taxes collected and held by the State at fiscal year end on behalf of the Village are also recognized as revenue Other receipts and fees become measurable and available when cash is received by the Village and recognized as revenue at that time Cost reimbursement type grant revenues are considered earned and are accrued simultaneously with the grant expenditures unless such expenditures are prohibited by the grant agreements The general fund is the Village s primary operating fund It accounts for all financial resources of the Village except those required to be accounted for in another fund Resources are derived prlmanly from property and utility taxes and intergovernmental revenues Expenditures are ,incurred to provide ,general government, public safety public works, building zoning and planning and recreation services The capital projects funds account for the acquisition or construction of major capital projects not being financed by proprietary funds The Village has two capital projects funds the caprtaliimprovement fund and the civic center fund Proprietary Fund Type Proprietary funds are accounted for on the flow of economic resources measurement focus and use the accrual basis of accounting Under this method revenues are recorded when earned and expenses are recorded at the time liabilities are incurred The Village applies all applicable Financial Accounting Standards Board (FASB) statements issued on or before November 30 1989 except those that are contradicted 01 0 E r L C 10 VILLAGE OF KEY BISCAYNE, FLORIDA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS (Continued) NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Contmued) 2 Measurement Focus, Basis of Accounting and Basis of Presentation (Continued) Proprietary Fund Type (Continued) P" r-9 by a Governmental Accounting Standards Board (GASB) pronouncement in accounting and reporting for its proprietary operations The proprietary fund includes the following fund type The enterprise funds are used to account for those operations that are financed and operated in a manner similar to a 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 enterpnse funds a stormwater utility fund a solid waste fund and a sanitary sewer construction fund Fiduciary 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 Trust funds are custodial in nature and do not present results of operations or have a measurement focus Trust finds 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 private 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 m 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 proprietary 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 operating budget for the ensuing fiscal year The operating budget includes appropriations and the means of financing them with an explanation regarding each expenditure that is not of a routine nature r L 1l VILLAGE OF KEY BISCAYNE, FLORIDA El NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS (Continued) NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 3 Budgets and Budgetary Accounting (Continued) (b) Public hearings are conducted to obtain taxpayer comments (c) Prior to October 1 the budget is legally enacted through passage of an ordinance (d) The Village Council by motion may make supplemental appropriations for the year up to the amount of revenues in excess of those estimated During fiscal year ended September 30 2000 there were no supplemental appropriations (e) Formal budgetary integration is employed as a management control device for the general fund (t) The budget for the general find is adopted on a basis consistent with generally accepted accounting principles (GAAP) except for certain unbudgeted expenditures of prior year reserves (g) The Village Manager is authorized to transfer part or all of an encumbered appropriation balance within departments within a fund however any revisions that alter the total appropriations of any department or fund must be approved by the Village Council The classification detail at which expenditures may not legally exceed appropriations is at the department level (h) Unencumbered appropriations lapse at year end Encumbered amounts are not reappropnated in the following years budget (i) Budgeted amounts are as ongmally adopted There were no budget amendments during the year 4 Deposits and Investments The Village s cash and cash equivalents are considered to be cash on hand and short term investments with original maturities of three months or less from the date of acquisition Deposits include cash on hand and certificates of deposit Village administration is authorized to invest in those instruments authorized by the Florida Statutes Investments which consist of funds held with the State Board of Administration Investment Pool (2A7 Pool) are reported at its fair value of its position in the pool which is the same as the value of the pool shares All other mvestments are reported at fair value 5 Fixed Assets 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 and capital projects funds and are L U 0 C C L L E E 12 VILLAGE OF KEY BISCAYNE, FLORIDA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS (Continued) NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 5 Fixed Assets (Continued) capitalized at histoncal cost or estimated cost if actual historical cost is not available in the general fixed assets account group except for certain infrastructure assets which include streets alleys sidewalks drainage and lighting systems which are immovable 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 withm 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 r is 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 financed 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 are legally segregated for a specific future use The description of each reserve indicates the purpose for which each was intended Designated fund balances indicate 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 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 10 Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanymg notes Although these estimates are based on management s knowledge of current events and actions it may undertake m the future they may ultimately differ from actual results 11 Comparative Data/Reclassifications Comparative total data for the prior year has been presented in selected sections of the accompanying financial statements in order to provide an understanding of changes in Villages financial position and operations Certain amounts presented in the prior year data have been reclassified to be consistent with current year s presentation 12 Memorandum Only Total Columns Total columns on the combined statements which are captioned memorandum only aggregate the columnar amounts'presentedkby fund type and account group'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 rnterfund eliminations have not been made in the aggregation of this data NOTE 2 DEPOSITS AND INVESTMENTS Deposits In addition to insurance provided by the Federal Depository Insurance Corporation all deposits are held in banking institutions approved by the State Treasurer of the State of Florida to hold public funds Under Florida Statutes Chapter 280 Florida Security for Public Deposits Act the State Treasurer requires all Florida qualified public depositories to deposit with the Treasurer or another banking institution eligible collateral In the event of a failure of a qualified public depository the remammg public depositories would be responsible for covering any resulting losses Accordingly all amounts reported as deposits are insured or collateralized with securities held by the entity or its agent in the entity s name Investments The Village is authorized to invest in obligations of the US Treasury its agencies instrumentalities and the Local Government Surplus Trust Fund administered by the State Board of Administration The investments follow the investment rules defined in Florida Statutes Chapter 215 The investment policy defined in the statutes attempts to promote through state assistance the maximization of net mterest earnings on invested surplus funds of local units of governments while hmrtmg the risk to which the funds are exposed a r ci U f� U r U 14 VILLAGE OF KEY BISCAYNE, FLORIDA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS (Contmutd) NOTE 2 DEPOSITS AND INVESTMENTS (Continued) Investments (Continued) The Local Government Surplus Funds Trust Fund is governed by Ch 19 7 of the Florida Administrative Code which identifies the Rules of the State Board of Administration These rules provide guidance and establish the general operating procedures for the administration of the Local Government Surplus Funds Trust Fund Additionally the Office of the Auditor General performs the operational audit of the activities and investments of the State Board of Administration The Local Government Surplus Funds Trust is not a registrant with the Securities sand Exchange Commission (SEC) however the Board has adopted operating procedures consistent with the requirements for a 2a 7 fund 61210, TIM At September 30 2000 the Village s investment balances which are carried at fair value were classified as credit risk category 1 insured or registered or securities held by the entity or its agent in the entity s name were as follows Category 1 Repurchase agreements $3 122 688 Bonds 382 969 Common stocks 807,056 4 312 713 Investments not subject to categorization Mutual funds 114 995 State Board of Administration investment pool 2,795,410 $7 223,118 A reconciliation of cash and investments as shown on the combined balance sheet is as follows Carrying amount of deposits Carrying amount of investments Cash and cash equivalents Investments NOTE 3 PROPERTY TAXES $ 9 685 869 7,223,118 $16,908,987 $ 6 394 932 10,514 055 $16 908.987 Property values are assessed on a county wide basis by the Miami Dade County Property Appraiser as of January 1 the lien date of each year and are due the following November 1 Taxable value of property within the Village is certified by the Property Appraiser and the Village levies a tax milllage rate upon the taxable value which will provide revenue required for the fiscal year beginning October 1 15 VILLAGE OF KEY BISCAYNE, FLORIDA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS (Continued) NOTE 3 PROPERTY TAXES (Contmued) 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 1are billed in the month of November subject to a 1% per month discount for the period November through February and are due no later than March 31 On April 1 unpaid amounts become delinquent with interest and penalties added thereafter Beginning June 1 tax certificates representing delinquent taxes with interest and penalties are sold by Miamii Dade County with remittance to the Village for its share of those receipts At September 30 2000 there were no significant delinquent taxes NOTE 4 FIXED ASSETS The following is a summary of changes in general fixed assets Land Buildings Improvements other than buildings Equipment Furniture and fixtures Construction in progress Total Balance September 30 1999 Additions Deletions $13 240 657 $3 331 216 $ 730 717 2 9)7 733 992 020 2 702 361 268 131 128 272 5 947 189,545 604,470 $19 949.285 $5 201.784 $ Depreciation is not required and has not been provided on general fixed assets The following is a summary of proprietary find type fixed assets Balance September 30 1999 Additions Deletions Stormwater utility system $10 056 660 Construction in progress 353,249 10 409 909 Less accumulated depreciation 539,458 $ 9 870„451 $ 20,000 20 000 273,919 $ 939) $ $ Balance September 30 2000 $16 571 873 730 717 3 949 753 2 970 492 134 219 794,015 $25,151.069 Balance September 30 2000 $10 056 660 373,249 10 429 909 813,377 $ 9 616,0_2 0 L l' L 16 VILLAGE OF KEY BISCAYNE, FLORIDA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS (Continued) w-, NOTE 5 LONG-TERM DEBT The following is a summary of changes in general long term debt account group i L Revenue bonds payable Compensated absences payable Rebatable arbitrage Revenue Bonds Land Acquisition Revenue Bonds Balance September 30 1999 Additions Payments $15 090 000 1 048 654 $16 1384,5±1 Balance September 30 2000 $ $935 000 $14 155 000 86 770 1 135 424 97,165 97,165 $183.935 $935.000 $15,387,589 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 $975 000 in fiscal year 2001 to $1 105 000 in fiscal year 2004 Interest accrues at 4 36% per annum Debt service requirements to maturity are as follows Fiscal year ending September 30 2001 2002 2003 2004 Principal Interest Total $ 975 000 $159 903 $1 I34 903 1 015 000 116 521 1 131 521 I 060 000 71 286 1 131 286 1,105,000 24,089 1,129,089 $4155,000 $371.799 $4 526,799 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 $10 000 000 the proceeds of which were used for the acquisition of property and financing of the construction of the Civic Center project The Village has pledged non ad valorem revenues to secure payment of the pnncipal and interest on the bonds The bonds are due in annual pnncipal mstallments ranging from $355 000 in fiscal year 2003 to $815 000 in fiscal year 2020 Interest accrues at 4 715% per annum r L.. 17 VILLAGE OF KEY BISCAYNE FLORIDA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS (Continued) U NOTE 5 LONG TERM DEBT (Continued) Revenue Bonds (Continued) Land Acquisition and Capital Improvement Revenue Bonds (Continued) Debt service requirements to maturity are as follows Principal Fiscal year ending September 30 2001 2002 2003 2004 2005 2006 2020 Stormwater Utility Revenue Bonds 355 000 375 000 390 000 8,880,000 $10,000,000 Interest Total $ 471 500 $ 471 500 471 500 471 500 463 131 818 131 445 921 820 921 427 886 817 886 3,523,676 12,403,676 $5 803.614 $15 803,614 During the fiscal year ended September 30 1999 the Village issued stormwater utility revenue bonds of $7 200 000 the proceeds of which were used to pay the principal of the $7 200 000 Bond Anticipation Notes Series 1995 The Village has pledged stormwater utility fees to secure payment of the principal and mterest on the bonds The bonds are due in annual principal installments on October 1 ` ranging from $125 000 in fiscal year 2001 to $595 000 in fiscal year 2020 However the payment due on October 1 2000 of $125 000 was paid on September 30 2000 Interest accrues at 4 13% per annum Debt service requirements to maturity are as follows Principal Interest Total Fiscal year ending September 30 2001 $ $ 218 239 $ 218 239 2002 130 000 286 622 416 622 2003 185 000 281 253 466 253 2004 195 000 273 612 468 612 2005 205 000 265 559 470 559 2006 2020 6,225,000 2,366,077 8,591,077 $6 940,000 $3 691,1_62 $10 631,362 Revolving Loan During the fiscal year ended September 30 1998 the Village obtained financing for the planning and engineering of the proposed sanitary sewer construction project under a State Revolving Fund Loan A loan agreement in the amount of $865 818 including capitalized interest and prepaid loan fees was entered into in June 1996 but the proceeds were received m fiscal year 1998 The loan is payable in semi annual payments over 20 years beginning on the earlier of the commencement of the construction project or February 15 2003 at an interest rate of 2 56% per annum Therefore annual debt service payments have not yet been determined U 1 L 0 U U U U U 71 E 18 VILLAGE OF KEY BISCAYNE FLORIDA Prat ammo s,. r E L PPM NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS (Continued) NOTE 5 LONG TERM DEBT (Continued) Revolving Loan (Continued) In November 1999 the Village was awarded an additional $6 798 000 under the State Revolving Fund Loan which has not yet been disbursed to the Village NOTE 6 COMMITMENTS AND CONTINGENCIES Commitments The Village was obligated under a non cancelable operating lease for office space until October 1 1998 Subsequent to October 1 1998 the Village leases their office space on a month to month basis Rent expense was approximately $97 000 for the fiscal year 2000 Constiaction Commitments The Village issued land acquisition and capital improvement revenue bonds totaling $10 000 000 in fiscal year 1999 for the acquisition of the property and construction of the Village Civic Center Dunng the year the Civic Center project incurred expenditures for the acquisition of land of approximately $3 300 000 Approximately $6 700 000 will be expended on the Civic Center and various other construction projects for street repairs and maintenance and Village beautification Litigation The Village is involved in several lawsuits incidental to its operations the outcome of which in the opinion of management and legal counsel would not have a matenal adverse effect on the financial condition of the Village Risk Management The Village is exposed to vanous nslcs of loss related to torts theft of damage to and destruction of assets errors and omissions and natural disasters for which the Village cames commercial insurance There was no reduction m insurance coverage from coverages in the pnor year and there were no settlements that exceeded insurance coverage for each of the pact three years Grant Contingency Federal and State programs in which the Village participates were audited in accordance with the provision of regulatory requirements and grantor agencies Pursuant to those provisions certain programs were tested for compliance with applicable grant requirements While no matters of noncompliance were disclosed by the audit government agencies may subject grant programs to additional compliance tests that may result in 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 19 VILLAGE OF KEY BISCAYNE FLORIDA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS (Continued) NOTE 7 RESERVED/DESIGNATED FUND BALANCES As of September 30 2000 fund balances in the governmental funds have been reserved or designated for the following purposes Reserved Fund Balances General fund Special disaster relief $ 100 000 Recreation facilities 99 860 Law enforcement 344 512 Community center 30 100 Beach park and walk 572. 738 Chmpensated absences 503 617 Subsequent year s budget 204 000 Emergencies 2,000,000 $ 3.854.827 Capital project funds Capital improvements Pension Trust Fund Employees pension benefits Designated Fund Balances General fund Inspector fees Police/fire equipment and building NOTE 8 SEGMENT INFORMATION FOR ENTERPRISE FUNDS $10.199.223 $ 1.433.779 $ 275 000 40,000 $ 315.000 The City maintains three enterprise funds the purpose of which is to account for stormwater solid waste and sanitary sewer construction services Selected financial data for the individual funds are presented below- Stormwater Solid Waste Utility Utility Operating revenues $ 494 955 Depreciation 273 919 Operating income (loss) 187 583 Interest expense 292 798 Net income (loss) (45 187) Fixed assets additions Net working capital Total assets Bonds payable/loans payable Total equity $ 286 522 (19 430) (13 828) 1 098 124 100 848 10 343 012 136615 6 940 000 3 401 407 100 848 20 Samtary Sewer Construction Total $ $ 781477 273 919 (6 190) 161 963 292 798 12374 (46641) 20 000 20 000 321 518 1 520 490 881090 11 360 717 865 818 7 805 818 14967 3 517 222 U E 0 LI U H U r v VILLAGE OF KEY BISCAYNE, FLORIDA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS (Continued) NOTE 9 DEFINED CONTRIBUTION PLANS The Village as a single employer contributes to the Village of Key Biscayne Money Purchase Plans which are defined contribution plans created in accordance with Internal Revenue Code Section 401(a) Under one Plan which is available to Village employees the Village contributes 11% and the employees contribute 6% Under the second plan which is available only to sworn or certified police officers and firefighters the Village contributes 11% and there is no employee contribution Beginning October 1 1997 the police officers and firefighters which elected to participate in the defined benefit plan (see Note 10) were no longer eligible to contribute to the 401(a) plan Employer contributions for the fiscal year ended September 30 2000 were approximately $472 000 while the employee contributions were approximately $134 000 Amendments to the Plan must be authorized by the Village Council NOTE 10 DEFINED BENEFIT PENSION PLAN Plan Descrzphon Effective October 1 1997 the Village established a single employer Public Employee Retirement System (PERS) to provide pension benefits for its police officers and firefighters The PERS is considered to be part of the Village s financial reporting entity and is included in the Village s financial reports as a pension trust fund The Plan was created under Village Ordinance 97 21 The latest available actuarial valuation is as of October 1 1999 The PERS does not issue a separate financial report of the Plan sant Under this plan all full time pohce officers and firefighters employed by the Village are eligible for participation The monthly retirement benefit is equal to 2% of the average final compensation for each year of service The calculation for the average final compensation is computed as one twelfth of the average salary of the five best years of the last ten years of credited service Credited service is determined by the total number of years employed by the Village since August 1 1993 Amendments to the Plan must be authonzed by the Village Council 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 1999 (the latest actuarial valuation date) Plan membership consisted of the followmg Retirees and beneficianes currently receiving benefits and terminated employees entitled to benefits but not yet receiving them 3 Current employees Vested Non vested Total 35 18 53 21 VILLAGE OF KEY BISCAYNE, FLORIDA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS (Continued) NOTE 10 DEFINED BENEFIT PENSION PLAN (Continued) Funding Policy From the effective date of the Plan October 1 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 Florida pursuant to Chapters 175 and 185 of the Florida Statutes The minimum member contribution rate is 8% The Plan is designed to limit the Village s exposure to contribute to the Plan Annual Pension Cost and Net Pension Asset The annual pension cost and net pension asset as of October 1 1999 was as follows Annual required contribution Interest on net pension asset Adjustment to annual required contribution Annual pension cost Contributions made Increase in net pension asset Net pension asset beginning of year Net pension asset end of year $ 1 497 1 497 32,525 31 028 $31 028 The annual required contribution for the current year was determined as part of the October 1 1999 actuarial valuation using the aggregate actuarial cost method This method does not identify and separately amortize unfunded actuarial liabilities When a plan uses the aggregate actuarial cost method a schedule of funding progress is not required to be presented The actuarial assumptions included (a) 9% investment rate of return (net of investment related expenses) and (b) projected salary increases rangmg from 6% per year Both (a) and (b) included an inflation component of 4% The assumptions did not include post retirement benefit increases The actuarial value of assets was determined using the difference between actual and expected return recognized over five years Trend Information Fiscal Year Annual Pension Percentage of Net Pension Ended Cost (APC) APC Contributed Asset 9/30/98 $ N/A $ 9/30/99 1 497 100% + 31 028 U 0 U U r L L t� I L 22 i r L 7 1 r E 7 REQUIRED SUPPLEMENTARY INFORMATION rn ifl f-1 l 1 I l 1---1 I__J f —I PH 1-1 LTA F-1 r 1 L] C-7 C I] [Ti [TI U-1 VILLAGE OF KEY BISCAYNE FLORIDA REQUIRED SUPPLEMENTARY INFORMATION PENSION TRUST FUND SCHEDULE OF EMPLOYER CONTRIBUTIONS Year Annual Ended Required Actual Percentage September 30 Contnbution Contribution Contributed 7 An I. L eviEG 1998 $ $ 32 525 100%+ 1999 1 497 60 949 100%+ 2000 110 700 100%+ The information presented in the required supplemental schedule n as determined as part of the actuarial N aluation at the date indicated Additional information as of the latest actuanal valuation follows Valuation date 10/1/99 Actuarial cost method Aggregate actuanal cost method Amortization method N/A Remaining amortization period N/A Asset valuation method Market value Actuanal 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% lAPAA 23 E=1 L C E = C Ll L fI C-1 C r L COMBINING, INDIVIDUAL FUND AND ACCOUNT GROUP STATEMENTS AND SCHEDULES I, l { I C. J L -1 Ci = f 71 L-1 I. _l I l L 1 L i r^ t r a Pr 1, pet 4.7 tt r tx 4131 7 7 I - GENERAL FUND The general fund is the pnncipal operating fund of the Village and is used to account for resources traditionally associated with governments which are not required to be accounted for in another fund [7-1Ir-" h _l L 1 Efl IC'] [CI E-1 Fr i f"] VILLAGE OF KEY BISCAYNE FLORIDA GENERAL FUND COMPARATIVE BALANCE SHEETS SEPTEMBER 30 2000 (WITH COMPARATIVE TOTALS FOR SEPTEMBER 30 1999) 7 7 L roe 2000 1999 ASSETS Cash and cash equivalents $ 3 208 836 $ 1 836 469 Investments 884 890 2 105 664 Due from other funds 83 978 198 216 Property taxes receivable 19 241 55 299 Accounts receivable 385 899 359 322 Total assets $ 4 582 844 $ 4 554 970 LIABILITIES AND FUND BALANCES Liabilities Accounts payable and accrued liabilities $ 366 563 $ 308 138 Deposits and performance bonds 46 454 5 915 Due to other funds 120 576 Total liabilities 413 017 434 629 Fund balances Reserved for Special relief disaster 100 000 100 000 Recreation facilities 99 860 99 860 Law enforcement 344,512 262 352 Community center 30 100 30 100 Beach park and walk 572 738 572 738 Compensated absences 503 617 565 586 Subsequent years budget 204 000 440 000 Emergencies 2 000 000 1 500 000 Supplemental fire aid 125 000 Beach improvements 24 600 3 854 827 3 720 236 Unreserved Designated for Police/fire equipment and building Inspector fees Community grants maintenance and improvements Professional fees 40 000 275 000 40 000 275 000 51 000 34 105 315 000 400 105 Total fund balances 4 169 827 4 120 341 Total liabilities and fund balances $ 4 582 844 $ 4 554 970 24 VILLAGE OF KEY BISCAYNE FLORIDA Revenues Property taxes GENERAL FUND SCHEDULE OF REVENUES AND EXPENDITURES BUDGET AND ACTUAL FISCAL YEAR ENDED SEPTEMBER 30 2000 Budget Budgetary Variance Basis Favorable Actual (Unfavorable) $ 7 677 766 $ 7 799 633 $ 121 867 Utility taxes 1 700 000 1 723 902 23 902 Franchise fees 843 425 729 998 (113 427) Intergovernmental State shared revenue 900 000 889 704 (10 296) Licenses and permits Occupational licenses 38 304 57 605 19 301 Building permits 493 000 1 259 036 766 036 531 304 1 316 641 785 337 Charges for services 103 020 224 177 121 157 Interest 494 600 315 959 (178 641) Grants 118 750 124 375 5 625 Total revenue $ 12 368 865 $ 13 124 389 $ 755,524 (Continued) E C C F. L 1 25 VILLAGE OF KEY BISCAYNE FLORIDA GENERAL FUND SCHEDULE OF REVENUES AND EXPENDITURES BUDGET AND ACTUAL (Continued) FISCAL YEAR ENDED SEPTEMBER 30 2000 Budget Budgetary Variance Basis Favorable Actual (Unfavorable) Expenditures General government — Elected officials $ 26 500 $ 21 866 $ 4 634 Administration 695 075 727 305 (32 230) Village attorney 213 000 201 539 11 461 Total general government 934 575 950 710 (16 135) Public works 588 739 712 892 (124153) i _.. Building planning and zoning 1 232 662 1 233 476 (814) r^ Parks and recreation 399 000 398 068 932 Public safety 6 261 217 6 296 461 (35 244) Non departmental 854 046 716 529 137 517 Debt service Prmcipal 935 000 935 000 Interest 603 626 595 767 7 859 1 538 626 1 530 767 7 859 Total expenditures $ 11 808 865 $ 11 838 903 $ (30 038) 26 L C" L7 Lr:J l• ] L._J L-- -1 I 1 I t o ,] L_ A f ., 7 L J L--1 l_.a..l I I I. 1 L— 1 r r" 6 P. 7 4 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 Fund The capital improvement fund accounts for the acquisition or construction of various major capital projects • Civic Center Fund The civic center fund was established to account for the construction of the Village civic center which will include administrative offices fire and police facilities and a Village community center 1 r 1 [.17-1 1-1 [ ET [ i r 1 t 1 L 1[ J I i L I L i ► I L i I i i, VILLAGE OF KEY BISCAYNE FLORIDA CAPITAL PROJECTS FUNDS COMBINING BALANCE SHEETS SEPTEMBER 30 2000 (WITH COMPARATIVE TOTALS FOR SEPTEMBER 30 1999) Capital Civic Totals Improvement Center 2000 1999 ASSETS Cash and cash equivalents $ 104 594 $ 1 645 721 $ 1 750 315 $ 2 361 021 Investments 3 173 261 5 150 884 8 324 145 11 100 771 Due from other funds 120 576 Receivables 90 862 279 906 370 768 88 000 Total assets $ 3 368 717 $ 7 076 511 $ 10 445 228 $ 13 670 368 LIABILITIES AND FUND BALANCES Liabilities Accounts payable and accrued liabilities $ 138 057 $ 57 458 $ 195 515 $ 190 255 Retamagepayable 33 543 Due to other funds 50 490 50 490 198 216 Total liabilities 188 547 57 458 246 005 422 014 Fund balance Reserved for capital improvements 3 180 170 7 019 053 10 199 223 13 248 354 r- Total liabilities and fund balances bail $ 3 368 717 $ 7 076 511 $ 10 445 228 $ 13 670 368 L 27 VILLAGE OF KEY BISCAYNE FLORIDA CAPITAL PROJECTS FUNDS COMBINING STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES FISCAL YEAR ENDED SEPTEMBER 30 2000 (WITH COMPARATIVE TOTALS FOR FISCAL YEAR ENDED SEPTEMBER 30 1999) Revenues Interest Other Total revenues Expenditures Capital outlay Total expenditures Capital Civic Totals Improvement Center 2000 1999 $ 266 361 $ 583 601 $ 849 962 $ 292 385 293,576 266 361 583 601 849 962 585 961 1 326 209 3 572 884 4 899 093 2 489 475 1 326 209 3 572 884 4 899 093 2 489 475 Deficiency of revenues over expenditures (1 059 848) (2 989 283) (4 049 131) (1 903 514) Other fmancmg sources Operating transfers in Bond proceeds Total other financing sources 1 000 000 1 000 000 1 0I7 430 10 000 000 1 000 000 1 000 000 11 017 430 Excess (deficiency) of revenues and other financing sources over expenditures (59 848) (2 989 283) (3 049 131) 9 113 916 Fund balances beginning 3 240 018 10 008 336 13 248 354 4 134 438 Fund balances ending $ 3 180 170 $ 7 019 053 $ 10 199 223 $ 13 248 354 C C E L C L� C 28 L , 4 1 r Firm win r L. r L ENTERPRISE FUNDS Enterpnse funds are used to account for operations that are financed and operated in a manner similar to pnvate business enterprises where the intent is that the costs of providing goods or services be financed or recovered pnmanly through user charges • Stormwater Utility System Fund The stormwater utility system accounts for the construction and maintenance of the stormwater system • Solid Waste Fund The solid waste fund provides collection service for trash removal Sohd waste expenses are pnmanly for curbside collections • Sanitary Sewer Construction Fund The sanitary sewer construction fund accounts for the development and construction of a sanitary sewer system to the unsewered areas of the community E 7 L 7 I 1 h 1 E 1 C 1 1 1 l 1 L) Ci I 1 1 I l i l_J l J L__.1 L I 1 VILLAGE OF KEY BISCAYNE FLORIDA ENTERPRISE FUNDS COMBINING BALANCE SHEETS SEPTEMBER 30 2000 (WITH COMPARATIVE TOTALS FOR SEPTEMBER 30 1999) v" - L Stormwater Sanitary Utility Solid Sewer Totals System Waite Construction 2000 1999 ASSETS Current assets Cash and cash equivalents $ 1000 329 $ 113 268 $ 321 823 $ 1 435 420 $ 1 554 492 Accounts receivable, net 99 400 23 347 122 747 112 650 Total current assets 1 099 729 136 615 321 823 1558 167 1667 142 Fixed assets net 9 243 283 373 249 9 616 532 9 870 451 Capitalized loan fees and interest 186 018 186 018 43 962 Total assets $ 10 343 012 $ 136 615 $ 881 090 $ 11 360 717 $ 11 581 555 LIABILITIES AND FUND EOUITY Ps' Current liabilities Accounts payable and accrued liabilities $ 1 605 $ 2 279 $ 305 $ 4 189 $ 82 180 Retamage payable 11 750 Due to other funds 33 488 33 488 Current portion of rex enue bands payable 135 000 Total current liabilities 1605 35 767 305 37 677 228 930 Long term debt Revolving loan 865 818 865 818 723 762 Revenue bonds payable 6 940 000 6 940 000 7 065 000 Total habilines 6 941 605 35 767 866 123 7 843 495 8 017 692 Fund equity Contributed capital 2 682 901 2 682 901 2 682 901 Retained earnings 718 506 100 848 14 967 834 321 880 962 Total fund equity 3 401 407 100 848 14 967 3 517 222 3 563 863 Total liabilities and fund equity $ 10 343 012 $ 136 615 $ 881 090 $ 11 360 717 $ 1 1 581 555 29 VILLAGE OF KEY BISCAYNE FLORIDA ENTERPRISE FUNDS COMBINING STATEMENTS OF REVENUES EXPENSES AND CHANGES IN RETAINED EARNINGS FISCAL YEAR ENDED SEPTEMBER 30 2000 (WITH COMPARATIVE TOTALS FOR FISCAL YEAR ENDED SEPTEMBER 30 1999) Operating revenue Operating expenses General and administrative costs Depreciation Total operating expenses Operating income (loss) Non operatingsevenues(expense) Interest income Interest expense Total non operating revenues (expenses) Net income (loss) Retained earnings begmnmg Retained earnings ending Stormwater Utility System Solid Waste Sanitary Sewer Construction $ 494 955 $ 286 522 $ 33 453 273 919 307 372 187 583 305 952 305 952 (19 430) 60 028 5 602 (292 798) (232 770) 5 602 (45 187) (13 828) 763 693 114 676 Totals 2000 1999 $ 781477 $ 750 040 6 190 345 595 298 769 273 919 269 729 6 190 619 514 568 498 (6 190) 161 963 181 542 18 564 84194 63 160 (292 798) (301 499) 18 564 (208 604) (238 339) 12 374 (46 641) (56 797) 2 593 880 962 937 759 $ 718 506 $ 100 848 $ 14 967 $ 834 321 $ 880 962 E C L r L .14 11004 C 30 VILLAGE OF KEY BISCAYNE FLORIDA ENTERPRISE FUNDS COMBINING STATEMENTS OF CASH FLOWS FISCAL YEAR ENDED SEPTEMBER 30 2000 (WITH COMPARATIVE TOTALS FOR FISCAL YEAR ENDED SEPTEMBER 30 1999) 6.9 r rw^ 119,19 Wirt Stormwater Sanitary Utility Solid Sewer Totals System Waste Construction 2000 1999 Cash flows from operating activities Operating income (loss) 5 187 583 $ (19 430) $ (6 190) $ 161 963 $ 181 542 Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities Depreciation 273 919 273 919 269 729 Change in operating assets and liabilities (Increase) decrease in Accounts receivable (4 884) (5 213) (10 097) 517 902 Interest receivable (142 056) (142 056) Due from other governments 8 562 Increase (decrease) in Accounts payable (80 575) 2 279 305 (77 991) (182 491) Retamage payable (11 750) (11 750) Due to other funds 33 488 33 488 (470 237) Total adjustments 176 710 30 554 (141 751) 65 513 143 465 Net cash provided (used) by operating activities 364 293 11 124 (147 941) 227 476 325 007 Cash ffous from capital and relating financing activities Payments for construction m progress (20 000) (20 000) (279 762) Proceeds from revenue bonds 7 200 000 Retirement of bond anticipation notes (7 200 000) Principal payment for revenue bonds (260 000) (260 000) Net proceeds from revolving loan 142 056 142 056 Interest paid (292 798) (292 798) (301 499) Net cash provided (used) by capital and related financing activities (552 798) 122 056 (430 742) (581 261) Cash flows from mvestrng activities Interest received Net increase (decrease) in cash and cash equivalents Cash and cash equivalents begmmng Cash and cash equivalents ending 60 028 5 602 18 564 84 194 63 160 (128 477) 16 726 (7 321) (119 072) (193 094) 1 128 806 96 542 329 144 L 554 492 1 747 586 $ 1 000 329 $ 113 268 $ 321 823 $ 1 435 420 $ 1 554 492 31 1 L .1 L:2_l I. J 1 1 I. I t .. I LEI Ls' L__1 Lv.J L I 3.2 7 GENERAL FIXED ASSETS ACCOUNT GROUP To account for fixed assets not accounted for in proprietary fund operations 1 1 177-1 LI"1 L_1 L-1 E'"-7 CT ] L 71 r- 1 1 _1 1 1 C -1 E I f_"T] f 1 3 771 C7 1 1 VILLAGE OF KEY BISCAYNE FLORIDA SCHEDULE OF GENERAL FIXED ASSETS BY SOURCE SEPTEMBER 30 2000 (WITH COMPARATIVE TOTALS FOR SEPTEMBER 30 1999) Fm r F- r L General fixed assets Land Buildings Improvements other than buildings Equipment Furniture and fixtures Construction in progress Total general fixed assets Investment in general fixed assets by source General fimd Capital project funds Donations 2000 $ 16 571 873 730 717 3 949 753 2 970 492 134 219 794 015 1999 $ 13 240 657 730 717 2 957 733 2 702,361 128 272 189 545 $ 25 151 069 $ 19 949 285 $ 13 733 888 $ 13 459 810 7 417 181 2 489 475 4 000 000 4 000 000 Total investment in general fixed assets $ 25 151 069 $ 19 949 285 32 VILLAGE OF KEY BISCAYNE FLORIDA SCHEDULE OF GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY SEPTEMBER 30 2000 Improvements Furniture Construction Other Than and in Land Building Buildings Equipment Fixtures Progress Total General government S 4 000 000 $ $ 2 661 153 $ 316 006 $ 76 365 $ 794 015 $ 7 847 539 Parks and recreation 9 240 657 143 641 1 267 427 154 842 8 207 10 814 774 Public safety 3 331 216 587 076 21 173 2,499 644 49 647 6 488 756 $ 16 571 873 $ 730 717 $ 3 949 753 $ 2 970 492 $ 134 219 $ 794 015 $ 25 151 069 u E E E E 33 VILLAGE OF KEY BISCAYNE FLORIDA SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY FISCAL YEAR ENDED SEPTEMBER 30 2000 porn I Late General government Parks and recreation Public safety part 7 L Balance September 30 1999 $ 6 547 756 10 472 302 2 929 227 Additions Balance September 30 Deletions 2000 $ 1 299 783 $ 342 472 3 559 529 $ 19 949 285 $ 5 201 784 $ $ 7 847 539 10 814 774 6 488 756 $ 25 151 069 34 nil L `_J C J r] C r" " 1 r iEr3 i=1 c :5 7 r---1 Cam`" 1 I"'i Ern GENERAL LONG-TERM DEBT ACCOUNT GROUP To account for the Village s unmatured principal and long term portion of compensated absences r L. [ ] L I I n ] L 1 1_1 E-1 L___1 L_ 7 L`-1 E-1 I] L_=f f-1 Cl C A f'"7 CI C] F] VILLAGE OF KEY BISCAYNE FLORIDA SCHEDULE OF GENERAL LONG TERM DEBT F"‘ i L.. r prim SEPTEMBER 30 2000 (WITH COMPARATIVE TOTALS FOR SEPTEMBER 30 1999) 2000 1999, Amount to be provided for retirement of general long term debt $ 15 387 589 $ 16 138 654 General long term debt payable Rebatable arbitrage Compensated absences payable Revenue bonds payable $ 97 165 $ 1 135 424 1 048 654 14 155 000 15 090 000 Total general long term debt payable $ 15 387 589 $ 16 138 654 35 I C J Ljii [U .J [Li Li [Li L r STATISTICAL SECTION 7 hvid 7 Low m.,, Lo l C 1 1_111 L.3 [] L L i C> L L 7 C 2 L "l i""3 r l L 7 ['-7 L77j [ A VILLAGE OF KEY BISCAYNE FLORIDA GENERAL GOVERNMENTAL EXPENDITURES BY FUNCIION Fiscal General Public Parks and Public 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) 4 453 539 9 601 922 (1) 782 001 18 963 556 1995 5 524 305 (2) 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 2000 4 795 894 (2) 6 068 147 380 502 830 360 12 074 903 (1) Includes acquisition of land for $9 238 317 for the Village Green (2) General government mcludes economic development building zonmg 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) r f L 36 VILLAGE OF KEY BISCAYNE FLORIDA GENERAL GOVERNMENTAL REVENUES BY SOURCE Licenses Fiscal Property and Inter Utility Franchise Year Taxes Permits Governmental Taxes Len Other (11 Interest Total 1992 $ $ 15 766 $ 934 018 $ 979 236 $ 151 392 $ 23 276 $ 4 480 $ 2 108 168 1993 3 536 480 1 458 733 2 485 979 1 212 084 625 815 169 429 121 676 9 610 196 1994 6 640 045 629 246 997 501 1 268 428 668 020 115 664 288 978 10 607 882 199 6 820 807 351 152 788 062 1 257 179 652 844 665 086 369 540 10 904 670 1996 6 486 019 430 208 791 403 1 294 486 638 096 1 495 521 280 570 11 416 303 1997 6 495 465 531 401 766 638 1 555 812 667 815 463 171 248 646 10 728 948 1998 6 963 900 1 003 768 843 812 1 514 697 709 067 392 975 233 654 11 661 873 1999 7 012 714 668 672 807 924 1 621 473 740 031 1 295 001 231 820 12 377 635 2000 7 799 633 1 316 641 889 704 1 723 902 729 998 348 552 315 959 13 124 389 (1) Includes charges for services grants and other Notes The Village s first year of operation was fiscal year 1992 Includes general fund only (GAAP basis) E C I- E.: C 0 E Cy C E E.9 CI VI C U c- 37 } VILLAGE OF KEY BISCAYNE FLORIDA r UTILITY TAX REVENUE BY SOURCE Mtge 7 PaP Fiscal Telecom Fuel Year Electricity munications 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 1995 875 704 186 780 38 130 3 920 152 645 1 257 179 1996 888 651 199 746 37 034 3 885 165 169 1 294 485 1997 1 032 445 274 768 42 066 3 616 202 918 1 555 813 1998 989 535 288 581 36 427 3 883 196 271 1 514 697 1999 992 319 380 934 35 121 4 262 208 837 1 621 473 2000 1 000 553 454 101 52 016 2 169 215 063 1 723 902 FRANCHISE FEE REVENUE BY SOURCE Fiscal Cable Year Electricity Television Telephone Total 1992 $ 112 658 $ 38 734 $ $ 151 392 1993 570 605 39 821 15 389 625 815 1994 603 638 43 877 20 505 668 020 1995 589 031 43 899 19 914 652 844 1996 571 093 46 824 20 179 638 096 1997 578 195 62 342 27 277 667 814 1998 631 323 53 728 24 016 709 067 1999 653 799 56 997 29 235 740 031 2000 646 000 59 548 24 450 729 998 PIM 38 VILLAGE OF KEY BISCAYNE FLORIDA PROPERTY TAX LEVIES AND COLLECTIONS Tax Fiscal Assessed Tax Total Percent Year(I) Year Value Levy Collected(2) Collected 1992 1993 $ 1 617 141 088 $ 3 687 082 $ 3 536 480 95 9% 1993 1994 1 560 057 130 6 925 094 6 640 045 95 9 1994 1995 1 741 921 584 7 143 620 6 820,807 95 5 1995 1996 1 767 457 005 6 716 337 6 418 864 95 6 1996 1997 1 861 243 132 6 711 642 6 495 465 96 8 1997 1998 2 003 049 232 7 222 995 6 948 521 96 2 1998 1999 2 028 174 208 7 313 596 7 012 714 959 1999 2000 2 232 457 904 8 050 243 7 799 633 96 9 (1) 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 (2) Collections reflect timely payment discounts of up to 4% and other adjustments C aloe F FL. C C 39 VILLAGE OF KEY BISCAYNE FLORIDA ASSESSED AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY 11.41. 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 7 1999 2 205 371 189 27 086 715 2 232 457 904 2000 2 470 115 075 28 934 086 2 499 049 161 Source Miami Dade County Property Appraisers Office Note Assessed values equal the estimated actual value 1.061 i— wow FT 40 ba VILLA GE OF KEY BISCAYNE, FLORI DA PROPERTY TAX R ATES DIRECT AND OVE RL APPING GOVER NME NTS Village of Key Biscayne Miami Dade C ou nty State School District Debt T otal Total Debt Total Fiscal Village Operating Service County SFWM D FI ND State Operating Service School Year Millage Millage Millage Millage Millage Millage Millage Millage M page Millage Other Total 1992 2 280 7 305 1 139 8 444 0 547 0 052 0 599 9 023 0 505 9 528 3 445 24 296 1993 4 439 7 305 0 830 8 135 0 597 0 052 0 649 9 283 0 640 9 923 1 101(1) 24 247 1994 4 101 7 253 0 817 8 070 0 497 0 049 0 546 9 503 0 842 10 345 0 443 23 505 1995 3 800 6 828 0 789 7 617 0 547 0 040 0 587 9 373 1 016 10 389 0 429 22 822 1996 3 606 6 469 0 774 7 243 0 572 0 038 0 610 9 356 1 010 10 366 0 439 22 264 1997 3 606 6 023 0 929 6 952 0 597 0 050 0 647 9 356 1 106 10 462 0 416 22 083 1998 3 606 6 023 0 837 6 860 0 597 0 047 0 644 9 182 0 978 10 160 0 434 21 704 1999 3 606 5 809 0 816 6 625 0 597 0 044 0 641 8 654 0 990 9 644 0 421 20 937 2000 3 606 5 751 0 652 6 403 0 597 0 041 0 638 8 702 0 915 9 617 0 451 20 715 (1) Village established its own fire district effective October 1 1993 Sou rce Miami Dade County Property Appraiser s Office 41 L"� r""7 = 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 Frmcipal Interest (1\ Service (2) Expenditures Expenditures 1994 $ $ 194 989 $ 194 989 $ I9 053 562 1 0% 7 yry L, r L. r 1995 755000 384661 1 139 661 10 603 914 107 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 13 332 558 8 5 2000 935 000 595 767 1 530 767 12 028 995 12 7 (1) Excludes bond issuance and other costs (2) Debt service on revenue bonds Includes general fund only 42 VILLAGE OF KEY BISCAYNE FLORIDA EY SCHEDULE OF DIRECT AND OVERLAPPING BONDED DEBT GENERAL OBLIGATION BONDS (IN THOUSANDS) Junsdtction Village of Key Biscayne Miami Dade County Miami Dade County Schools SEPTEMBER 30 2000 Taxable Property Value (1) Net General Obligation Bonded Debt Outstanding (2) $ 2 499 049 $ 97 042 641 97 829 365 21 220 328 426 945 745 Percentage Applicable to Key Biscayne Amount Applicable to Key Biscayne 100 00% $ 21 220 2 58% 2 55% 8 473 24 116 $ 1 295 391 $ 53 809 (1) Source Miami Dade County Property Appraiser s Office Taxable Property Value reflects January 1 2000 amounts (2) Source Miami Dade County Finance Department Net General Obligation Bonded Debt outstanding figures are as of September 30 2000 (3) Based on the percentage of the County s and School Boards tax roll valuation compnsed of real and personal property situated in the Village of Key Biscayne C C C 43 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 (I) 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 L 1998 9 471 (4) 2 003 049 232 5 985 000 0 30 632 i L 1999 9 689 (5) 2 028 174 208 22 290 000 1 1 2 300 f" 2000 9 689 (6) 2 232 457 904 21 220 000 0 95 2 190 t 1 (1) Net bonded assessed actual value of taxable property (2) Net bonded debt represents revenue bonds (3) As of April 1997 University of Florida Economic and Business Research (4) As of Apnl 1998 University of Flonda Economic and Business Research (5) As of July 1999 University of Florida Economic and Business Research 7 (6) Same as prior year number not available until 2000 census is released in Apnl 2001 7 44 VILLAGE OF KEY BISCAYNE FLORIDA DEMOGRAPHICS 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 14 8 854 Estimates of Population by Race Anglo Black Hispanic Total 1990 5 028 36 3 790 8 854 INCOME* Per Capita Income Average Per Anglo Black Hispanic Capita 1990 $ 44 615 $ 24 577 $ 28 341 $ 37 629 UNEMPLOYMENT RATES** (Percent) 1994 1995 122@ 1221 1998 1999 2000 Miami Dade County 7 9 6 8 7 8 7 1 6 7 5 9 5 6 Village of Key Biscayne 3 6 3 1 3 6 3 3 3 1 2 7 2 6 * Source Bureau of Census Income Division 2000 Census Not Available Until Apn12001 ** Source State Department of Labor E L C E E r L -45 VILLAGE OF KEY BISCAYNE FLORIDA PROPERTY VALUE CONSTRUCTION AND BANK DEPOSITS art roe item doas paw Residential Commercial (000s Omitted) Total Total County Village Fiscal Permits # of # of of Bank Bank Year Issued Permits Valuation Pen -nits Valuation Construction Deposits (1) Deposits (2) 1992 35 25 $ 638 483 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 1995 2 857 2 568 33 820 503 289 2 099 661 35 920 164 17 938 762 1996 3 171 3 060 65 318 655 111 1 231 097 66 549 752 14 561 654 1997 3 570 3 402 82 481 700 168 667 328 83 149 028 34 664 829 1998 3 002 2 879 129,200 900 106 3 176 031 132 376 931 36 659 805 347 178 1999 2 711 2 416 94 287 095 295 56 792 994 151 080 089 39 633 149 377 060 2000 1 793 1 641 85 244 371 152 9 359 770 94 604 141 38 539 107 364 973 (1) State of Flonda Division of Banking as of Rule 30 of each respective year Information is for Miami Dade County which 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 limits Information for all years presented was not available Note Village began operations during fiscal year 1992 rgr 46 VILLAGE OF KEY BISCAYNE FLORIDA PRINCIPAL TAXPAYERS SEPTEMBER 30 2000 Taxpayer % of Total Taxable Assessed Valuation Valuation Sonesta Beach Resort LP $ 40 447 828 1 81% Grand Bay Tower Associates 26 192 000 1 17% GB Rotel Partners Ltd. 23 341 830 1 05% Key Biscayne Shopping Center 8 672 526 0 39% Galleria of Key Biscayne 7 467 541 0 33% Florida Power and Light Company 6 503 744 0 29% Ocean Club Inc 5 920 230 0 27% BellSouth 5 917 426 0 26% Pith Inc 5 798 964 0 26% Charles G Rebozo Trust 5 701 062 0 25% Source Miami Dade County Appraisers Office $ 135 963 151 6 08% L E L W 0 E 6 E U 0 Er E 47 VILLAGE OF KEY BISCAYNE FLORIDA MISCELLANEOUS STATISTICAL DATA SEPTEMBER 30 2000 PPM Date of Incorporation 1991 Form of Government Council Manager Area 1 2 Square Miles Miles of Street 20 2 Linear Miles Fire Protection Number of Stations 1 Police Protection Number of Stations 1 i r r E 7 PAR kens Education Attendance Centers 2 Number of Students 1 360 Number of Teachers 92 Miami Dade County Water & Sewer Authority Number of Customers 1 926 Average Daily Consumption 650 000 gallons Sewers Number of Customers 969 Fire Hydrants 209 Building Permits Fssued 1 955 Recreation and Culture Number of Parks 3 Number of Libraries 1 (Operated by Miami Dade County) Number of Tennis Centers 1 Number of Recreational Centers 1 Employees Full Time 99 48 L G ] =I 1_1 E,.J © I= L' J € FL 1 E.-711 E Pr COMPLIANCE SECTION b 7 L L. r L r L 1 L 1 [ 3 L nil Q L =] C] CT] L] Cl [] LT-] L- 1 r 1 LT A El L A LA r L C Rachlm Cohen & Holtz my Certified Pubhc 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 in Accordance with Government Auditing Standards 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 Flonda (the Village) as of September 30 2000 and for the year then ended and have issued our report dated December 8 2000 We conducted our audit in accordance with generally accepted auditing standards and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States Compliance As part of obtaining reasonable assurance about whether the Village s financial statements are free of material misstatement we performed tests of its compliance with certain provisions of laws regulations contracts and grants non compliance with which could have a direct and matenal 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 accordmgly we do not express such an opinion The results of our tests disclosed no instances of non compliance that are required to be reported under Government Auchtzng Standards Internal Control over Financial Reportmg In planning and performing our audit we considered the Village s internal control over financial reporting m order to detennme our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal control over financial reporting Our consideration of the internal control of er financial reporting would not necessanly disclose all matters m the internal control over financial reporting that might be matenal weaknesses A matenal 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 nsk that misstatements in amounts that would be material in relation to the financial statements bemg audited may occur and not be detected within a tmiely period by employees m the normal course of performing their assigned functions We noted no matters mvolving the internal control over financial reportmg and its operation that we consider to be matenal weaknesses -49 One Southeast Third Avenue Tenth Floor Miami Florida 33131 Tel 30o 377 4228 Fax 30o 377 8331 Offices m Miami Ft Lauderdale Boca Raton West Palm Beach Stuart wwwrchcpa com Member fs mnutlntemah nalAs rates Inc x th office mpnn pal hes1hr gh tth world Member fth Ante anins tut of Cerhh dPnbh Ac untant and member ofth Fl d In ttut fCerbh dPubl A tants Laal l _ ".J LeaJ Lam,! 171 i -, i L, d..1 1 • I I 1 1_,--J L.�J L, 1 I 1 [ 1 1 L. ... _-1 L. .,..,_] Honorable Mayor Village Council and Village Manager Village of Key Biscayne Florida Page Two POP However we noted other matters that we has e reported to management in the schedule of findings rt 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 Florida 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 public record and its distribution is not limited r l r 7 r" ffar Este fall. 644. r GLfi Miami Florida December 8 2000 A mina — 50 c Lad LJ L:.- ... 1 L .1 I_ I 11 L.. ,....1 Latl I J I. 1 L 1 I J 1J Lai i Fstabs r L L r L E Rachhn Cohen & Holtz LLP Certified Public Accountants & Consultants Management Letter in Accordance with the Rules of the Auditor General of the State of Florida Honorable Mayor Village Council and Village Manager Village of Key Biscayne Florida We have audited the general purpose financial statements of the Village of Key Biscayne Florida (the Village) as of and for the year ended September 30 2000 and have issued our report thereon dated December 8 2000 We conducted our audit in accordance with generally accepted auditing standards and the standards applicable to financial audits contained in Government Auditing 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 2000 we report the following in accordance with Chapter 10 550 Rules of the Auditor General Local Government Entity Audits which requires that this report specifically address but not be limited to the matters outlined in Rule 10 554(1)(e) 1 No inaccuracies shortages defalcations fraud and violations of laws rules regulations and contractual provisions were reported in the preceding annual financial audit 2 Recommendations made in the preceding annual financial audit have been implemented except as reported in the schedule of findings accompanying this report 3 The Village during fiscal year 2000 was not in a state of financial emergency as defined by Florida Statutes 218 503(1) The Village has no deficit fund balances 4 Recommendations to improve the Village s present financial management and accounting procedures are accompanying this report in the schedule of findings 5 The Village was m compliance with Section 218 415 Florida Statutes (1999) regarding the investment of public funds 6 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 51 One Southeast Third Avenue Tenth Floor Miami Florida 33131 Tel 305 377 4228 Fax 303 377 8331 Offices in Miami Ft Lauderdale Boca Raton West Palm Beach Stuart wwwrchcpa corn Member fS muttinternah nalAs sates Inc th ffi mpnnmp I t thro gh tth w Id Mash f th Amer Insatut f Cemh d Pubh A untants and member f th K d Institute f Cerhh d P bh A wtants L .,J L.._., 1 L -A L-1 I .1 I I Honorable Mayor Village Council and Village Manager Village of Key Biscayne Flonda Page Two c Had improper or inadequate accounting procedures other than those noted in the schedule of findings accompany this report d Failed to record financial transactions which could have a material effect on the Village s general purpose fmancial statements e Had other inaccuracies shortages defalcations or instances of fraud bun 7 The annual financial report for the year ended September 30 2000 has been filed with the Department of Banking and Finance pursuant to Section 218 32 Florida Statutes and is in agreement with the audited financial statements of the same period 8 The Village was incorporated by Laws of Florida 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 Florida 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 public record and its distribution is not limited Miami Florida December 8 2000 inida_ .449 52 t L.thal l.y.,l Lail L... .1 L ,1 L.J I —I L...--/ L_ -_l t .. . I 1_,..1 t ! 1 1 1 .. ._1 1 1 1. .l L J L.-1 RPM VILLAGE OF KEY BISCAYNE FLORIDA SCHEDULE OF FINDINGS FISCAL YEAR ENDED SEPTEMBER 30 2000 I CURRENT YEAR COMMENTS AND RECOMMENDATIONS Other Matters 1 Inactive Bank Accounts At September 30 2000 the Village maintained bank accounts that have not had any ache ity in the past few years Inactive bank accounts can increase the nsk and be susceptible to misuse by someone seeking to misappropriate cash Recommendation We recommend that the Village evaluate the need for the inactive bank accounts and close any account that the Village has no intention of utilizing "" Management s Response During the fiscal year 1999 2000 numerous bank accounts and investments were closed and funds consolidated into instruments paying higher rates of return There were no inactive bank accounts at September 30 2000 2 Fixed Asset /Property Records The Village currently does not mamtam detailed fixed asset / property records The Village should maintain detailed property records for all fixed assets which at a minimum shall include the following • Description asset number and location • Acquisition cost and date of acquisition • Assigned life and method of depreciation (will be applicable under GASB Statement No 34) • Depreciation taken on an annual basis with accumulation thereof (will be applicable under GASB Statement No 34) Detailed property records aid m the accounting for property additions disposals substantiate insurance claims for lost or damaged items and provides controls to safeguard the assets Recommendation The Village needs to create and maintain a detailed fixed asset / property records system and ensure that the general ledger of the Village is adjusted in a timely manner to reflect the activity of the Village s property as it relates to acquisitions and disposals during the year Safeguarding assets is a primary concern for the Village Secondarily the Village will be required to implement GASB Statement No 34 for the fiscal year ending September 30 2004 Therefore some of the detail that is currently not mamtamed will be required. r L 53 Lams] L 1 L ...4 L_..J L. —.A L: ] I..] L...1 L..,..1 1 L 1 [ .i I ....1 E E J 3 t„ ] L E.] VILLAGE OF KEY BISCAYNE FLORIDA 112,4 4.55 rfii 6 em 7 r i 7 L 7 7 L. SCHEDULE OF FINDINGS (Continued) L CURRENT YEAR COMMENTS AND RECOMMENDATIONS (Continued) 2 Fixed Asset/Property Records (Continued) Management s Response During fiscal year 1999 2000 a detailed physical inventory of all Village fixed assets was undertaken This project is at present coinciding with the accreditation process of the Police Depaitalent Expected completion is March 15 2001 3 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 m 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 Recommendation We recommend that the Village review the new requirements and plan accordingly Management s Response The Village is currently reviewing the requirements and initiating a plan 4 New Florida Investment Law for Public Funds On October 1 2000 the new Investments of Public Funds Act goes became effective Senate Bill 372 (the Bill) creates uniform investment policy guidelines limitations and conditions for the investment of assets of local retirement plans and of other funds available to units of local government In addition the Bill authonzes the Department of Revenue and the Department of Banking and Finance to withhold certain funds from local governments which fail to meet certain reporting requirements Section 218 415 Flonda Statutes relating to local government excess funds investment policies is amended. Recommendation We recommend that the Village and the administration review the new requirements for investment of public funds 54 La ssi L. t s7 1�,:1 Imo 3 1 1 E71 L`J E J L—.1 L L :1 LUJ f Li VILLAGE OF KEY BISCAYNE FLORIDA i SCHEDULE OF FINDINGS (Continued) I CURRENT YEAR COMMENTS AND RECOMMENDATIONS (Continued) 4 New Florida Investment Law for Public Funds (Continued) Management s Response The Village is currently reviewing the requirements of the new law II PRIOR YEAR RECOMMENDATIONS NOT IMPLEMENTED IN CURRENT YEAR 7 1 Compensated Absences The recordkeepmg function for compensated absences (vacation sick and compensatory time) is handled by the responsible depaiturents (general employees police and fire) Each year that we perform our audit procedures on compensated absences we noted that the Village incurred recordkeepmg difficulties t" This is primanly caused by the decentralized recordkeepmg (i e each department maintains their own records and their own format) Additionally due to the size of the Village formal approval of leave requests was not always evident There is a significant liability recorded by the Village for compensated absences which will continue to increase over the years therefore accurate records and procedures are essential to monitor these activities R^ 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 cenliahzed recordkeepmg can properly control and account for compensated absences Management s Response and Current Status As a result of all payroll functions transferred to Moyer & Associates on October 15 2000 the process of recordkeepmg of compensated absences has been significantly changed The individual depaituients will continue to keep detailed records of time as it is used This is due to the fact that all time used must be approved by department heads and that certain departments have other legal requirements requiring them to maintain such records All information and current accruals are at present time shown on each employee s paycheck stub with records centralized at Moyer & Associates 2 Pension Accounting Effective October 1 1997 the Village established a defined benefit pension plan for ehgible police officers and firefighters This pension plan is required to be reported by the Village as a pension trust fund in its Comprehensive Annual Financial Report The recording of transactions the monthly reconciliation of contributions and other accounting and recordkeepmg functions were not maintained during the year To properly safeguard assets from potential loss or misuse these procedures should be performed in a timely manner This matter was reported in the pnor year 55 1 Lid L. _..l l J C f. 11:71 L._J Ui VJ LLAGE OF KEY BISCAYNE FLORIDA SCHEDULE OF FINDINGS (Contmued) II PRIOR YEAR RECOMMENDATIONS NOT IMPLEMENTED IN CURRENT YEAR (Contmued) 2 Pension Accounting (Continued) Recommendation TrorWEI { We recommend that the Pension Board monitor the financial activities of the plan and ensure that either the Village s finance department or an outside accountant perform the accounting and recording of transactions of the Plan in a timely manner and report the monthly or quarterly results to the Pension Board Management s Response and Current Status Contact has been made between the Finance Department and the Pension Board Monthly accountmg procedures are being put into place 56 J E Cam. J 17 l . .1 L 7 [Li