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HomeMy Public PortalAboutComprehensive Annual Financial Report Fiscal Year Ended 09-30-01.tifC - r VILLAGE OF KEY BISCAYNE, FLORIDA COMPREHENSIVE ANNUAL FINANCIAL REPORT FISCAL YEAR ENDED SEPTEMBER 30 2001 Prepared by THE FINANCE DEPARTMENT Combining Statements of Cash Rows 32 L oery January 20 2002 V ilag C 1 J I R May R b t Oldak w kx V My Scott B Mrrh Fd L nB uek AI H F n M am Fd Jam L P V IIao M g C Smu IKa g Office of the Village Manager 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 2001 is hereby submitted Responsibility for both the accuracy of the data and the completeness and fairness of the presentation mcludmg all disclosures rests with the Village To the best of our knowledge and belief the enclosed data is accurate m all material respects and is reported in a manner designed to fairly present the financial position and results of operations of the various funds and account groups of the Village All disclosures necessary to enable the reader to gam an understandmg of the Village s financial activities have been included The Comprehensive Annual Financial Report (CAFR) is presented in four sections The introductory section mcludes this transmittal letter the Village s organizational chart a list of principal officials and the 2000 Certificate of Achievement for Excellence m Financial Reporting The financial section mcludes the report of the independent certified public accountants on the general purpose fmancial statements and the required notes and the combmmg 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 Government Accounting Standards and Rules of the Auditor General of the State of Florida Reporting Entity and its Services The Village includes for financial reportmg 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 • Buildmg Zonmg and Planning • Public Safety • Fire Rescue • Recreation • Public Works • Parks and Recreation • 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 Honda 33149 (305) 365 5514 Fax (305) 365 8936 MISSION STATEMENT 10 PROVIDE A SAFE QUALITY COMMUNITY ENVIRONMENT FOR AIL ISLANDERS THROUGH FLESPONSIBLF GOVERNMENT 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 compnsed of the Mayor and six members and is responsible for enacting ordinances, resolutions and regulations governing the Village as well as appointing the members of various advisory boards the Village Manager Village Clerk and Village Attorney As Chief Administrative Officer the Village Manager is responsible for carrying out the pohcies and ordmances of the Village Council for overseeing the day to day operations of the Village and appointing and super4ising the, department heads of the Village 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 Bill Baggs Cape Florida State Recreation Area a park of approximately 415 acres borders the Village to the north. by Crandon Park, a 960 acre park administered by Miami -Dade County and to the south The Village currently has an ,area of approximately 1 25 square miles and population according to the 2000 Census at 10,500 year-round and 4 000 seasonal residents Major Initiatives For the Year The Village s staff followmg 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 Durmg the fiscal year 2001 the most notable examples of the Village s efforts included continuing improvements and additions to Key Biscayne s infrastructure beautification projects designed to further enhance the Village s specific style and character hiring of a Senior Coordinator and the groundbreaking for construction of the Village Civic Center complex Fiscal year 2001 witnessed many improvements and additions to the Village s public infrastructure Lighting projects continued throughout the Village beautification and installation of sidewalks curbing and construction of the Village Green Gazebo/Bandstand Construction of the Village Civic Center coiigilex commenced m Apnl 2001 This project will consist of a Fire Rescue Station, a Police/Administration Building and a Community Theater The total cost of the project mcludmg land acquisitions and professional fees will approximate $30 milhon The Civic Center will denve funding from Senes 1999 Bonds that were issued in the amount of $10 million and Series 13 Q 0 0 13 0 u 0 13 11 Honorable Mayor Village Council and Citizens Village of Key Biscayne 2000 Bonds issued m the amount of $10 million and a third traunche is anticipated for fiscal year 2002 The completion date for this project is targeted for summer 2003 Ornamental/up lighting along East Enid Drive Seaview Drive and portions of Crandon Boulevard were completed in fiscal year 2001 Installation of these lights was done for safety as well as beautification along these streets The Village continued with the addition of sidewalks on Westwood West McIntyre West Heather Drive and Woodcrest Road In conjunction with the sidewalk project bnckpaver crosswalks and curbing were installed to provide beauty as well as traffic calming The Village Green GazeboBandstand located near the northwest corner of the Village Green was designed to address a series of functions for the Village It can be a setting for informal concerts as well as being evocative bright and whimsical piece of urban sculpture Lastly the first Senior Coordinator for the Village began work m fiscal year 2001 This person will provide programming and information to the Seniors of Key Biscayne Working with residents senior programs have been developed to meet the needs of this population Adults and seniors can participate in excursions to area attractions events classes seminars and cultural activities r- 1 For the Future Village of Key Biscayne residents can be assured that during fiscal year 2002 their government would continue to provide them with more and better services The Building Zoning and Planning Depaitiiient will continue to improve the quality of services offered i to our citizens During fiscal year 2002 the department will mitiate a new service that enables our residents contractors and architects to track their pLiunt applications and inspections through the Internet When fully developed building permits can be printed in offices and homes and permits and inspections can be requested via the Internet without having to visit our offices Keeping with the improvement theme the Public Works Department will also be involved in numerous infrastructure improvements in the FY 2002 Major projects for 2002 include expansion of the sidewalk project develop Crandon Boulevard Master Plan and completion of the second phase of the Village Ocean Park In addition Public Works will continue to oversee the contracts awarded for residential refuse collection, street sweeping and catch basin cleanmg and maintenance as well as Village landscaping and mamtenance contractors r^ r iii Honorable Mayor Village Council and Citizens Village of Key Biscayne Important in maintaining and enhancing of the Villagers unique lifestyle are the activities of the Recreation Department During fiscal year 2002 the Department will continue to work with the Keep Seniors on Key Biscayne Committee (KSOKB) to develop programs that will meet the information recreation and service needs of this valued population. For fiscal year 2002 the Village Recreation Department will host a Seniors Health Fair and start a senior volunteer telephone reassurance program The department will also host the following special events Halloween Weekend Celebration Key Biscayne Lighthouse Run & Walk Concert Series Winterfest Spnng Egg Hunt and the Fourth of July Fireworkst The department continues to assist civic groups with their special events as well contract with outside agencies to provide additional programs and facilities Associated with the Village s recreational activities is the presence in our community of the Key Biscayne branch of the Miami Dade Library Distract Due to the Village s donation of approximately $42 000 m FY 2001 funds to the library the facility will provide an additional 25 hours per week of operation including Sundays between October and May The Village s Fire Depai 'lent is also anticipating fiscal year 2002 to be most productive The Department will continue its highly successful pubhc service programs such as citizen CPR classes blood pressure testing and school age fire safety training and education The Department will also contmue its fire prevention inspection program m all hi rise and mercantile structures m the Village Another very important program offered by the Department is the Community Emergency Response Team (C RE. T) Program C ER T consists of ten to fifteen members who are framed to prepare for and respond after a disaster Lastly other significant events that the Department participates m include the Fourth of July celebration, Lighthouse Run and Emergency Medical Services Week activities Departmental Focus Each yearthe City will focus attention on the efforts and accomplishments of a selected department This year the Police Depai tuient has been selected for this purpose The Department is composed of 29 police officers and 10 civilian personnel Its structure is divided into two divisions the Patrol Division consisting of 18 patrol officers three lieutenants and four dispatchers which are divided into three shifts This Division responds to initial calls for service and is supported by the Support Services Division consisting of one lieutenant one DARE /School Resource Officer Cnmmal Investigator four Public Service Aids and five part-time crossing guards The Office of the Chief administers and coordinates the overall police operation with the Chief of Police reporting directly to the Village Manager regarding all matters of public safety The Chief Deputy iv II U 0 U a a U U 0 0 0 0 0 0 0 0 U Honorable Mayor Village Council and Citizens Village of Key Biscayne Chief Records Manager and Administrative Aide coordinate recruitmg hirmg and training and maintain and distribute all reports and records for the pohce department The depaiinient operates m an effective and efficient manner with one of the lowest officer to resident ratios m the county Violent crime in Key Biscayne has been almost non existent and property cnmes such as burglary averaged less than three per month and we have averaged less than one stolen car per month Performance indicators clearly show the department s service is outstanding based on the citizen surveys conducted On the Police Citizen Satisfaction Survey 93% of the residents rated services good to excellent and on the Village Chamber of Commerce Survey 92% of those surveyed rated Key Biscayne a very safe community to work and reside Children represent 2 4% of the population Nationally young people tend to have more accidents more police contacts take more chances and receive more injures than other age groups For fiscal year 2002 the Police Depai tlent will conduct a number of police safety programs to help to ensure their safety and security such as bicycle rodeos helmet and razor safety 'Know the Law informational flyers for bikes roller biadmg and motorized go peds Children will be given dog tags with their name school and their emergency phone number in the event of an accident or if a young child is lost and we will begin a program to educate and enforce child restraint devices m cars r Other programs contmued from previous years include the Missing Persons Education program and A Child is Missmg technology an automated calling system to locate missing children and a Be Safe From Dogs program To further prepare police officers to carry out their duties officers will receive training in crowd and riot control dealing with confrontational situations sensitivity training water rescue and cnme scene evidence and processing The Village had the lowest crime rate of any city in Miami Dade County and the second lowest cnme rate for all of the cities of its size throughout Flonda FINANCIAL INFORMATION Accounting System Intemal and Budgetary Control r 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 v talk Honorable Mayor Village Council and Citizens Village of Key Biscayne 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 urtcu al 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 Reporting Standards The form and control of the Comprehensive Annual Financial Report and the accompanying financial statements and statistical tables were prepared in conformance with standards set forth by. 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 LI U S 13 a U U U B U U U L Honorable Mayor Village Council and Citizens Village of Key Biscayne REVENUES (GAAP Basis) Sources Property Taxes Utility Taxes Franchise Fees Intergovernmental Licenses and Permits Charges for Services Other Interest Grants Total Revenues Net FY 2001 FY 2000 Changes Change $ 8 738 608 $ 7 799 633 $ 938975 11% 1 772 208 1 723 902 48 306 3 783 513 729 998 53 515 7 930 169 889 704 40 465 5 1 308 229 1 316 641 (8 412) (1) 440 136 224 177 215 959 96 18 400 560 17 840 100+ 291 408 315 399 (23 991) (8) 278,345 124,375 153,970 100+ $14.561.016 $13 124389 $1,436,627 11% EXPENDITURES AND TRANSFERS (GAAP Basis) Function General Government Public Works Building Zoning & Planning Parks and Recreation Public Safety Debt Service Non Departmental Capital Outlay Transfers to Capital Improvement Fund Net FY 2001 FY 2000 Changes Change $ 1 270 062 $ 1 068 710 $201 352 19% 933 096 830 360 102 736 12 1 235 529 1 227 696 7 833 1 452 804 380 502 72 302 19 6 172 932 6 068 147 104 785 2 1 606 875 1,530 767 76 108 5 630 656 694 643 (63 987) (9) 272 722 274 078 (1 356) (1) 1,250,001 1,000,000 250,001 25 $13 824,677 $13.074.903 $749.774 6% VII Honorable Mayor Village Council and Citizens Village of Key Biscayne Capital Proects Fund Durmg fiscal year 1995 the Village Council established a Capital Improvement Fund for various infrastructure projects of a multi year character Funding for these projects will come from annual appropriations in the General Fund Budget These appropriations are recorded as operating transfers from the General Fund During fiscal year 1999 the Village Council established a Civic Center Fund to account f n the land acquisition planning and construction of a new Village Civic Center to house Police Fire/EMS and administration offices for the Village of Key Biscayne Funding for this project is from a series of Revenue Bonds the first of which was issued July 30 1999 A second series of revenue bonds was issued in 2000 Enterprise Funds Enteiprise 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 enterpnse funds are 1 Stormwater Utility System 2 Solid Waste 3 Samtary Sewer System The Village Council established a budget for the Sanitary Sewer System during the fiscal year A state loan was obtained from the Florida Department of Environmental Protection to finance the construction of the system Funds for the pre construction design phase were received and the engineering firm of Post Buckley Schuh & Jerrigan, Inc was hired to design the system Plans and specifications have been completed:4nd approved by all appropriate agencies Fiduciary Fund The Fiduciary Fund type is a Trust and Agency Fund established for the purpose of accounting for assets held m trustee capacity or as an agent for individuals private organi7arions and other governments As of September 30 2001 the following is recorded as a Fiduciary Fniul 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 U Q U U p Li U r~ 0 fl vin Honorable Mayor Village Council and Citizens Village of Key Biscayne the State Constitution Each member is required to contribute 12% of his/her salary until September 30 2001 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 2001 were approximately $1 530 000 Other Plans Administered by the Village A 401(a) money purchase plan is offered by the Village for its employees and was created in accordance with Internal Revenue Code Section 401 The Plan managed by independent plan admmistrators permits employees 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 fmancial statements but is included as a footnote disclosure The 401(a) fund had approximately $3 600 000 in investments as of September 30 2001 r L 4a i P 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 Employee investments m the Section 457 Plan as of September 30 2001 were approximately $1 520 000 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 or disclose this Plan in their financial statements 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 2001 the general fixed assets acquired amount to approximately $30 600 000 Major additions for fiscal year 2001 were for public safety vehicles and imaging equipment for the Clerk s office and construction costs associated with the new police and administrative building and civic center Debt Administration The Village of Key Biscayne has four 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 Ix Honorable Mayor Village Council and Citizens Village of Key Biscayne to purchase the land for the Village Green The outstanding balance on September 30 2001 was $3 180 000 2) $7,200 000 in Stormwater Utility Revenue Bonds were issued January 26 1999 from Bank of America at 4 13% for 20 years The outstanding balance at September 30 2001 was $6 940 000 3) a $10 000 000 Land Acquisition and Capital Improvement Revenue Bond Series 1999 at 4 715% for 20 years to purchase land and construct a Village Civic Center building The outstanding balance at September 30 2001 was $10 000 000- 4) A $10 000 000 Capital Improvement Revenue Bond, Series 2000 at 5 240% for 20 years to continue construction of the Village Civic Center building The outstanding balance at September 30 2001 was $10 000 000 Both Capital Improvement Revenue bonds were issued through Bank of America Cash Management The Village has several cash management vehicles and investment accounts or money market accounts in the SunTrust and Northern Trust Banks under agreements which provided for overnight 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 Surplus Trust Fund administered by the State Board of Administration which as of September 30 2001 had a balance of $254 585 in the General Fund and $519 389 m the Law Enforcement Trust Fund, $72 294 in the Solid Waste Fund $333 255 in the Sanitary Sewer Improvement Fund, $1 035 533 m the Capital Improvement Fund and $15 024 222 in the Civic Center Fund Risk Management The Village is insured with the Coregis Florida Cities Program for liability and property coverage and with the Preferred Governmental Insurance Trust from Florida 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 2000 The Village has received this award each year since 1992 The Government Finance Officers Association of the United States and Canada (GFOA) also presented an award for Distinguished Budget Presentation to the Village of Key Biscayne for its annual Budget for the fiscal year begnming October 1 2000 The award has been received each year since 1993 a U a Li U El 13 B Li U U U U C 0 Plat Honorable Mayor Village Council and Citizens Village of Key Biscayne 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 fmancial plan and as a communications device L 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 ffi Acknowledgments L The preparation of this report could not have been accomphshed without the efficient and dedicated services of the staff of the Village We exp-ess our appreciation to all members of the ..taff 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 m conduct of their mdependent audit of the Village s financial records and transactions Respectfully submitted C Samuel Kissinger Village Manager X1 r VILLAGE OF KEY BISCAYNE FLORIDA VILLAGE OFFICIALS SEPTEMBER 30 2001 VILLAGE COUNCIL Joe I Rasco Mayor Mortimer Fried, Vice Mayor Scott Bass Martha Fdez Leon Broucek Alan IL Fein Robert Oldakowski James L Peters VILLAGE MANAGER C Samuel Kissinger VILLAGE CLERK Conchita H Alvarez CMC VILLAGE ATTORNEY Weiss Scrota & Helfinan P A FINANCE DIRECTOR Moyer & Associates/Severn Trent Services VILLAGE AUDITORS Raehlm Cohen & Holtz LLP Certified Public Accountants & Consultants H 0 0 0 13 0 1 xii VILLAGE OF KEY BISCAYNE FLORIDA r P 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 2000 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 accounhng and financial reporting c ' _ ���� Pr f sident Executive Director x111 r=o cxa azi ri _73 C. %At c$ Department funding, Zoning anal Planning r Special Master 7 partmeft#'>o < Emergency Services nizational Chart VOTERS OF KEY BISCAYNE Village Council Assistant to:: the AangeAVIAN Programs z. an# Tours Local Planning Agency Village Engine. Water emeit'•- Refuse Collection and Recycling .ca Police/Fire Retirement Board Finance am tiministratli Services Finance r. > ccauntrn ` Personnel/ ;Renetits .. Risk 'Management FINANCIAL SECTION r L UT r r Pees Rachhn Cohen & Holtz up 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 Flonda (the Village) as of and for the year ended September 30 2001 as fisted in the table of contents These general purpose fmancial 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 auditing standards generally accepted in the United States and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of matenal misstatement An audit includes examining on a test basis evidence supporting the amounts and disclosures in the general purpose financial statements An audit also includes assessing the accounting pnnciples 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 opimon In our opimon the general purpose financial statements referred to above present fairly in all material respects the financial position of the Village as of September 30 2001 and the results of its operations and the cash flows of its proprietary fiend type for the year then ended in conformity with accounting pnnciples generally accepted in the United States In accordance with Government Auditing Standards we have also issued a report dated November 29 2001 on our consideration of the Village s 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 opimon on the general purpose financial statements taken as a whole The accompanying schedule of expenditures of state financial assistance is presented for purposes of additional analysis as required by the Chapter 10 550 Rules of the Auditor General and the combining individual fund and account group statements and schedules as listed m the table of contents and the required supplementary mformation on page 25 are presented for purposes of additional analysis and are not a required part of the general purpose fmancial 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 matenal respects in relation to the general purpose financial statements taken as a whole One Southeast Third Avenue Tenth Floor Miami Florida 33131 Tel 305 377 4228 Fax 305 377 8331 Offices m Miami Ft Lauderdale West Palm Beach Stuart wink rchcpa corn Member Summit Internet al orate In th fh esmpm pal hes through utth orld Member of the Americanlnshtut of Certified P bh A untan and m mb fib PI d institute f Ce hh d Publ A untants RCH Honorable Mayor Village Council and Village Manager Village of Key Biscayne Flonda Page Two The information shown in the statistical section fisted in the table of contents has not been subjected to the auditing procedures applied m the audit of the general purpose financial statements and accordingly we express no opinion thereon Miami Flonda November 29 2001 r� r ie L C L I - GENERAL PURPOSE FINANCIAL STATEMENTS (Combined Statements - Overview) i 7 r-1 (`1 ( 1 C l ( 1 1-1 f -1 (-1 TT1 T 1 (-1 1 L -j 1 I 11 I VILLAGE OF KEY BISCAYNE FLORI DA CO MBINED BALANCE SHEET ALL FUN D 1 YPES AN D ACCOUN I GROUPS SEI TEM BER 30 2001 (WITH COMP ARATIVE TOT ALS FOR SLP I EMBER 30 2000) Go vernmental Proprietary Fiduciary Account Fund T ypes Fund Types Fund Type Groups Trust General General T otals Capital and Fixed L ong Term (Memorandum O nly) Genial Projects Entem nse Agency Assets Dell 7,941 2S19Q ASSETS AND OTHER DEBITS Cash and cash equiv alen ts $ 4 025 611 $ 16 070 542 $ 716 030 $ $ $ $ 20 812 183 $ 6 394 932 Inve stmen ts 1 098 385 2 197 725 932 230 1 512 043 5 740 383 10 514 055 Due from other funds 1 501 819 1 501 819 83 978 Property taxes receivable 36 673 36 673 19 241 O ther receivables 510 668 70 820 157 913 15 105 754 506 1 007 812 Capitalized loan fees an d in terest 259 584 259 584 186 018 Fixed assets net 9 342 613 30 598 888 39 941 501 34 767 601 Prepaid expenses 152 696 152 696 Amount to be provided fm retirement of general long term debt 24 562 060 24 562 060 15 387 589 Total assets and othe r debits $ 5 671 337 $ 19 993 602 $ 11 408 370 $ 1 527 148 $ 30 598 888 $ 24 562 060 $ 93 761 405 $ 68 361 226 LIABILITIES. EOUITY AND OTHER CREDITS Liabilities Accounts payable and accrued liabilities Retainage payable Deposits and performance bonds Due to other funds Revolving loan Rebatable arbiti age Co mpensated absences payable Reven ue bo nds payable Total liabilities $ 673 821 $ 376 944 $ 72 899 $ 139 244 1 410 1 501 819 61 281 887 983 6 940 000 2 238 331 516188 7 900 882 $ $ $ 1 123 664 $ 566 267 139 244 1 410 4( 454 1 501 819 83 978 887 983 865 818 179 962 179 962 97 165 1 202 098 1 263 379 1 135 424 23 180 000 30 120 000 21 095 000 24 562 060 35 217 461 23 890 106 Equity and o ther credits Investment in general fixed assets 30 598 888 30 598 888 25 151 069 Contributed capital 2 682 901 2 682 901 2 682 901 Retained earnings 824 587 824 587 834 321 Fund balance Reserved 3 158 006 18 806 952 1 527 148 23 492 106 15 487 829 Unreseiv ed Designated 275 000 670 462 945 462 315 000 Total equity and other credits 3 433 006 19 477 414 3 507 488 1527 148 30 598 888 58 543 944 44 471 120 To tal liabilities equity an d other credits $ 5 671 337 $ 19 993 602 $ 11 408 370 $ 1 527 148 $ 30 598 888 $ 24 562 060 $ 93 761 405 $ 68 361 226 See notes to general purpose finan cial statemen ts 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 2001 (WITH COMPARATIVE TOTALS FOR FISCAL YEAR ENDED SEPTEMBER 30 2000) Revenues Property taxes Utility taxes Franchise fees Intergovernmental Licenses and permits Charges for services Interest Grants Other Total revenues Expenditures Current General government Public works Building zoning, and planning Parks and recreation Public safety Non departmental Capital outlay Debt Service Principal Interest Total expenditures General Fund Capital Projects Funds Totals (Memorandum Only) 2001 2000 $ 8 738 608 $ $ 8 738 608 $ 7 799 633 1 772 208 1772 208 1723 902 783 513 783 513 729 998 930 169 930 169 889 704 1 308 229 1 308 229 1 316 641 440136 440136 224177 291 408 1 051 565 1 342 973 1 165 921 278 345 533 652 811 997 124 375 18,400 18 400 14 561 016 1 585 217 16 146233 13 974,351 1 270 062 933 096 1235 529 452 804 6 172 932 630 657 272 722 975 000 631 875 1 270 062 1 068 710 933 096 830 360 1 235 529 1 227 696 452,804 380 502 6 172 932 6 068 147 630 657 694 643 5 030 186 5 302 908 5 I73 171 975 000 935 000 631 875 595 767 12 574 677 5 030186 17 604 863 16 973 996 Excess (deficiency) of revenues over expenditures 1 986 339 (3 444 969) (1 458 630) (2 999 645) Other financing sources (uses) Operating transfers in 1 250 000 1 250 000 1 000 000 Operating transfers out (1 250 000) (1 250 000) (I 000 000) Bond proceeds 10 000 000 10 000 000 Total other financing sources (uses) (I 250 000) 11 250 000 10 000 000 Excess (deficiency) of revenues and other financing sources over expenditures and other financing uses 736 339 7 805 031 8 54I 370 (2 999 645) Fund balances beginning 4 169 827 10 199 223 14 369 050 17 368 695 Residual equity transfers (1 473 160) 1 473 160 _ Fund balances ending $ 3 433 006 $ 19 477 414 $ 22 910 420 $ 14 369 050 See notes to general purpose financial statements -4 0 6 U U U 0 Q C VILLAGE OF KEY BISCAYNE FLORIDA STATEMENT OF REVENUES AND EXPENDITURES BUDGET AND ACTUAL GENERAL FUND FISCAL YEAR ENDED SEPTEMBER 30 2001 Budgetary Vanance Basis Favorable Budget Actual (Unfavorable) Revenues Property taxes $ 8 556 788 $ 8 738 608 $ 181 820 Utility taxes 1 855 000 1 772 208 (82 792) Franchise fees 740 000 783 513 43 513 Intergovernmental 900 000 930 169 30 169 Licenses and permits 938 687 1 308 229 369 542 Charges for services 103 020 440 136 337 116 Interest 250 000 291 408 41 408 Grants 50 250 278 345 228 095 Other 18 400 18 400 Total revenues 13 393 745 14 561 016 1 167 271 r rW T Expenditures Current General government 1 074 557 1 193 045 (118 488) Public works 757 589 835 866 (78 277) Building zoning and planning 1 286 950 1 237 837 49 113 Parks and recreation 527 812 473 255 54 557 Public safety 6 377 222 6 385 772 (8 550) Non departmental 752 860 638 027 114 833 Debt Service Principal 975 000 975 000 Interest 631 403 631 875 (472) Total expenditures 12 383 393 12 370 677 12 716 Excess of revenues over expenditures 1 010 352 Other financing sources (uses) Appropriation of pnor years fund balance expenditures of pnor year reserves Operating transfers out Total other financmg sources (uses) Excess of revenues and other financing sources over expenditures and other financing uses 2 190 339 1 179 987 239 648 (204 000) (443 648) (1 250 000) (1 250 000) (1 010 352) (1 454 000) (443 648) $ $ 736 339 $ 736 339 See notes to general purpose financial statements 5 VILLAGE OF KEY BISCAYNE FLORIDA COMBINED STATEMENT OF REVENUES EXPENSES AND CHANGES IN RETAINED EARNINGS ENTERPRISE FUNDS FISCAL YEAR ENDED SEPTEMBER 30 2001 (WITH COMPARATIVE TOTALS FORFISCAL YEAR ENDED SEPTEMBER 30 2000) 2001 2000 Operating revenue $ 810 662 $ 781 477 Operating expenses General and admrmshative costs 349 580 345,595 Depreciation 273 919 273 919 Total operating expenses 623 499 619,514 Operating income 187 163 161 963 Non operatmg revenue (expense) Interest income Interest expense Total non operating expense Net loss Retained earnings, begmnmg Retained eauungs ending See notes to general purpose financial statements 6 89 852 84194 (286 749) (292 798) (196 897) (208 604) (9 734) (46 641) 834 321 880 962 $ 824 587 $ 834 321 U LI 0 U Li 9 U Li U U 0 LT U U VILLAGE OF KEY BISCAYNE FLORIDA COMBINED STATEMENT OF CASH FLOWS ENTERPRISE FUNDS FISCAL YEAR ENDED SEPTEMBER 30 2001 (WI lH COMPARATIVE TOTALS FOR FISCAL YEAR ENDED SEPTEMBER 30 2000) 2001 2000 Cash flows from operatmg activities Operating income $ 187 163 $ 161 963 Adjustments to reconcile operating income to net cash provided by operating activities Depreciation 273 919 273 919 Changes in operating assets and liabilities Increase m Accounts receivable (36 291) (10 097) Interest receivable (72 441) (142 056) Increase (decrease) in Accounts payable and accrued liabilities 68 710 (77 991) Retamage payable (11 750) Due to other funds (33 488) 33 488 Total adjustments 200 409 65 513 Net cash provided by operating activities 387 572 227 476 Cash flows from capital and related financing activities r Payments for construction in progress Payments on revenue bonds Net proceeds from revolving loan Interest paid k Net cash used by capital and related financing activities 7 7 r sue.. r r 22 165 (286 749) (20 000) (260 000) 142 056 (292 798) (264 584) (430 742) Cash flows from investing activities Purchase of investments (932 230) Interest received 89 852 84 194 Net cash provided (used) by investing activities (842 378) 84 194 Net decrease in cash and cash equivalents Cash and cash equivalents beginning Cash and cash equivalents ending (719390) (119072) 1 435 420 1 554 492 $ 716 030 $ 1 435 420 See notes to general purpose financial statements 7 VILLAGE OF KEY BISCAYNE FLORIDA STATEMENT OP CHANGES IN PLAN NET ASSETS PENSION TRUST FUND FISCAL YEAR ENDED SEPTEMBER 30 2001 (WITH COMPARATIVE TOTALS FOR FISCAL YEAR ENDED SEPTEMBER 30 2000) 2001 2000 ADDITIONS Contributions Plan member $ 379 240 $ 479 749 State 230 370 110 700 Total contributions Investment earnings (losses) Total additions 609 610 590 449 (378 408) 74 462 231 202 664 911 DEDUCTIONS Distributions 110 607 116 846 Administrative expenses 27 226 37 029 Total deductions 137 833 153 875 Net increase Net assets held m trust for pension benefits Beginning of year 93 369 511 036 1 433 779 922 743 End of year $ 1 527 148 $ 1 433 779 See notes to general purpose financial statements 8 EJ C U El H El 0 0 0 U 0 U U U U U 0 U NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS r L P' t L VILLAGE OF KEY BISCAYNE, FLORIDA NOTES TO GENERAL PURPOSE FINANCIAL STAILMENTS SEPTEMBER 30 2001 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES ont 6 OMB r L. The Village of Key Biscayne Florida (the Village) located m Miami Dade County is a political subdivision of the State of Florida The Village which was mcorporated in 1991 operates under a Council Manager form of government In addition to the general government function the Village provides its residents with public works public safety (police and fire) parks and recreation building zoning and planning functions sanitation and stormwater management The Village does not provide educational or hospital facilities those services are provided by the Miami Dade County School Board and Miami Dade County respectively The accountmg policies of the Village conform to accounting principles generally accepted in the United States (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 establishmg governmental accounting and financial reporting pnnciples The more significant of the Village s accounting policies are descnbed 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 m 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 fmancial 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 assessmg 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 misleadmg or incomplete The Village is financially accountable for a component unit if it appomts a voting majority of the organization s govemmg board and it is able to impose its will on that organization or there is a potential for the organization to provide specific financial benefits to or impose specific financial burdens on the Village Based upon the application of these cntena there were no organizations that met the cntena descnbed 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 mdependent fiscal and accounting entity with a self balancmg set of accounts Fund accounting segregates funds aecordmg to their intended purpose and is used to aid management m demonstrating compliance with finance related legal and contractual provisions The minimum number of funds is mamtamed consistent with legal and managenal requirements Account groups are a reporting device to account for certain assets and liabilities of the governmental funds not recorded directly m those funds 9 VILLAGE OF KEY BISCAYNE, FLORIDA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS (Continued) NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 2 Measurement Focus, Basis of Accountmg 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 determined and available means collectible withini the current period or soon enough thereafter td pay liabilities 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 fui unmatured principal and interest on general Iong term debt which is recognized when due and certain compensated absences Which are redognized when the gbhgahons are expected to be liquidated with expendable available financial 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 food is the Village s piiniary operating fund It accounts for all financial resources of the Village except those required to be accounted for in another fund Resources are derived primarily from property and utility taxes and intergovernmental revenues Expenditures are incurred to provide general government public safety public works btuldmg zoning and planmng 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 capital improvement 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 mcurred The Village applies all applicable Financial Accounting Standards Board (FASB) 0 U a 13 B U Li U U U C U 10 0 VILLAGE OF KEY BISCAYNE, FLORIDA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS (Continued) NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 2 Measurement Focus Basis of Accounting and Basis of Presentation (Continued) Proprietary Fund Type (Continued) statements issued on or before November 30 1989 except those that are contradicted by a Governmental Accounting Standards Board (GASB) pronouncement m accounting and reportmg for its propnetary operations The proprietary fund includes the following fund type r L L r' L r L The enterprzse funds are used to account for those operations that are financed and operated m a manner similar to a pnvate business or where the Council has decided that the determination of revenues earned costs incurred (mcludmg depreciation) and/or net mcome is necessary for management accountability The Village has three enterprise funds a stormwater utility fund a solid waste fund and a sanitary sewer construction fund Fiduciary Fund Type The fzduczazy 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 funds are accounted for in a manner similar to proprietary fund types (accrual basis of accounting) Trust funds are used to account for assets held by the Village in a trustee capacity for individuals pnvate organizations other governments and/or other finds The Village has one trust fund a pension trust fund that accounts for a defined benefit pension plan for police officers and firefighters Plan member contributions are recognized in the period in which the contributions are due Employer and state contributions to the plan are recognized when due and when the employer has made a formal commitment to provide the contributions Benefits and refunds are recognized when due and payable in accordance with the terms of the pIan Account Groups The general fixed assets account group is used to account for fixed assets not accounted for in propnetary funds The general long term debt account group is used to account for general long term obligations including compensated absences that are not specific liabilities of the propnetary funds 3 Budgets and Budgetary Accounting An annual appropnated budget is prepared for the general fund 11 VILLAGE OF KEY BISCAYNE, FLORIDA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS (Continued) NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Contmued) 3 Budgets and Budgetary Accounting (Continued) 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 (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 2001 there was one supplemental appropriation m the amount of $35 000 (e) Formal budgetary integration is employed as a management control device for the general fund (f) The budget for the general fund is adopted on a basis consistent with generally accepted accountmg principles (GAAP) except for certam 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 For the year ended September 30 2001 expenditures exceeded appropriations m general government activities by $118 488 m public works by $78 277 and in public safety by $8 550 as presented m the Statement of Revenues and Expenditures — Budget and Actual — General Fund (h) Unencumbered appropriations lapse at year end Encumbered amounts are not reappropnated in the following years budget. (i) Budgeted amounts are as ongrnally adopted There were no budget amendments during the year 4 Deposits and Investments The Villages 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 LI El 0 U H LJ U U 12 VILLAGE OF KEY BISCAYNE FLORIDA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS (Continued) NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 4 Deposits and Investments (Continued) Village administration is authorized to invest in those mstruments authonzed by the Flonda Statutes Investments which consist of funds held with the State Board of Administration Investment Pool are reported at its fair value of its position m the pool which is the same as the value of the pool shares All other investments are reported at fair value 5 Fixed Assets r• r L Fixed assets used in governmental fund type operations are accounted for m the general fixed assets account group rather than in the governmental funds General fixed assets purchased are initially reported as expenditures in the general and capital projects funds and are capitalized at historical cost or estimated cost if actual historical cost is not available in the general fixed assets account group except for certain mfrastructure 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 consist 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 fives which range between 20 and 45 years 6. Interfund Receivables/Payables Transactions between funds that are representative of lending/borrowing arrangements at the end of the fiscal year are reported as due to/from other funds 7 Compensated Absences It is the Village s policy to permit employees to accumulate earned but unused vacation and sick pay and compensatory time within specified limits Accumulated vacation and sick pay and compensatory time have been recorded as expenditures in the governmental funds when earned to the extent that such amounts will be paid from expendable available resources The remammg portion has been reported as a liability m the general long term debt account group 8 Long -Term Obligations The Village reports long term debt of governmental funds m 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 m the general long term debt account group Long term debt and other obligations financed by propnetary funds are reported as liabilities of those funds 13 VILLAGE OF KEY BISCAYNE FLORIDA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS (Continued) NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 9 Reserves and Designations Fund balances are reserved to indicate that a portion of fund equity is not available for appropnation 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 10 Use of Estimates The preparation of financial statements m conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported m the financial statements and accompanying notes Although these estimates are based on management s knowledge of current events and actions it may undertake in the future they may ultimately differ from actual results 11 Comparative Data/Reclassifications Comparative total data for the prior year has been presented m selected sections of the accompanying financial statements in order to provide an understanding of changes in Village s financial position and operations Certam amounts presented in the pnor 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 presented by fund type and account group and are presented only to facilitate financial analysis Data m these columns do not present financial position or results of operations in conformity with accounting pnnciples generally accepted in the United States neither is such data comparable to a consolidation Interfund 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 m 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 Flonda qualified public depositones to deposit with the Treasurer or another banking institution eligible collateral In the event of a failure U U ii U Q U U U U Li U 14 VILLAGE OF KEY BISCAYNE FLORIDA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS (Continued) NOTE 2 DEPOSITS AND INVESTMENTS (Contmued) vt Deposits (Continued) of a qualified public depository the remammg public depositories would be responsible for covenng any resultrng losses Accordingly all amounts reported as deposits are insured or collateralized with secunties 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 i" Board of Administration The investments follow the investment rules defined m Florida b Statutes Chapter 215 The investment policy defined in the statutes attempts to promote through state assistance the maximization of net interest earnings on invested surplus funds of local units of governments while limiting the nsk to which the funds are exposed Pry r r L r L E The Local Government Surplus Funds Trust Fund is governed by Ch 19 7 of the Flonda 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 At September 30 2001 the Village s investment balances which are tamed 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 $ 3 537 549 Bonds 481 082 Common stocks 726,160 4 744 791 Investments not subject to categorization Mutual funds State Board of Administration mvestment pool 304 801 16,759,322 $21 808 914 A reconciliation of cash and investments as shown on the combined balance sheet is as follows Carrying amount of deposits Carrying amount of investments $ 4 743 652 21,808,914 $26 552 566 15 VILLAGE OF KEY BISCAYNE FLORIDA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS (Continued) NOTE 2 DEPOSITS AND INVESTMENTS (Continued) Investments (Continued) Cash and cash equivalents Investments NOTE 3 PROPERTY TAXES $20 812 183 5,740,383 $26,552,566 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 /pillage rate upon the taxable value which will provide revenue required for the fiscal year beginning October 1 Property taxes levied each November 1 by the Village and all other taxing authorities within the County are centrally billed and collected by Miami Dade County with remittances to the Village of their proportionate share of collected taxes Taxes for the fiscal year beginning October 1 are billed in the month of November subject to a 1% per month discount for the period November through February and are due no later than March 31 On April I unpaid amounts become delinquent with interest and penalties added thereafter Beginning June 1 tax certificates representing delinquent taxes with interest and penalties are sold by Miami Dade County with remittance to the Village for its share of those receipts At September 30 2001 there were no matenal delinquent taxes NOTE 4 FIXED ASSETS The following is a summary of changes in general fixed assets Land Buildings h„provements other than buildings Equipment Furniture and fixtures Construction in progress Total Balance Septuniber 30 2000 Additions/ Deletions/ Transfers Transfers Balance September 30 2001 $16 571 873 $ $ $16 571 873 730 717 71 573 802 290 3 949 753 4 132 442 896 092 7 186 103 2 970 492 284 075 948 097 2 306 470 134 219 89 244 44 975 794,015 3,299,335 406,173 3,687,177 $25,151,069 $7 787,425 $2 339 606 $30 598,888 Depreciation is not required and has not been provided on general fixed assets U 13 U U U U U U C 3! U 16 VILLAGE OF KEY BISCAYNE, FLORIDA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS (Continued) NOTE 4 FIXED ASSETS (Continued) The following is a summary of proprietary fund type fixed assets r L L Stormwater utility system Construction in progress Less accumulated depreciation Balance September 30 2000 $10 056 660 373,249 10 429 909 813,377 $ 9.616.532 Balance September 30 Additions Deletions 2001 $ $ $10 056 660 373,249 10 429 909 273,919 1,087,296 $273,919 $ $ 9,342,613 NOTE 5 LONG-TERM DEBT The following is a summary of changes in general long term debt account group Balance September 30 2000 Revenue bonds payable $14 155 000 Compensated absences payable 1 135 424 Rebatable arbitrage 97,165 $15 387,589 Revenue Bonds Additions Balance September 30 Payments 2001 $10 000 000 $975 000 $23 180 000 66 674 1 202 098 82,797 179,962 $10,149,471 $975,000 $24 562 060 Land Acquisition Revenue Bonds During the fiscal year ended September 30 1994 the Village issued $9 200 000 Land Acquisition Revenue Bonds Senes 1993 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 prmcipal and interest on the bonds The bonds are due in annual principal installments ranging from $1 015 000 in fiscal year 2002 to $1 105 000 in fiscal year 2004 Interest accrues at 4 36% per annum Debt service requirements to matunty are as follows Pnncipal Interest Total Fiscal year ending September 30 2002 $1 015 000 $116 521 $1 131 521 2003 1 060 000 71 286 1 131 286 2004 1,105,000 24,089 1,129,089 $3 180,000 $211.896 $3.391.896 17 VILLAGE OF KEY BISCAYNE, FLORIDA NO I ES TO GENERAL PURPOSE FINANCIAL STATEMENTS (Continued) NOTE S LONG-TERM DEBT (Continued) Revenue Bonds (Continued) Land Acquisition and Capital Improvement Revenue Bonds During the fiscal year ended September 30 1999 the Village issued $10 000 000 Land Acquisition and Capital Improvement Revenue Bonds Series 1999 the proceeds of which were used for the acquisition of property and fmancmg of the construction of the Civic Center project The Village has pledged non ad valorem revenues to secure payment of the principal and mterest on the bonds The bonds are due m annual principal mstalhnents ranging from $355 000 in fiscal year 2003 to $815 000 in fiscal year 2020 Interest accrues at 4 715% per annum Debt service requirements to maturity are as follows Fiscal year ending September 30 2002 2003 2004 2005 2006 2007 2020 Principal 355 000 375 000 390 000 410 000 8,470,000 $10 000,000 Interest Total $ 471 500 463 131 445 921 427 886 409 026 3,114,650 $5 332 114 $ 471 500 818 131 820 921 817 886 819 026 11,584,650 $15 332 114 During the fiscal year ended September 30 2001 the Village issued a second series of $10 000 000 Land Acquisition and Capital Improvement Revenue Bonds Series 2000 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 principal and interest on the bonds The bonds are due in annual principal installments ranging from $380 000 in fiscal year 2005 to $860 000 in fiscal year 2021 Interest accrues at 5 24% per annum Debt service requirements to maturity are as follows Principal Interest Total Fiscal year ending September 30 2002 $ 2003 2004 2005 380 000 2006 400 000 2007 2021 9,220,000 $10 000,000 $ 831 122 524 000 524 000 514 044 496 608 4,077,650 $6 967,4,L,4 $ 831 122 524 000 524 000 894 044 896,608 13,297,650 $16.967.424 U Fl Li II U U U U p U A n U 18 VILLAGE OF KEY BISCAYNE, FLORIDA ..Q r 2- NOTE 5 NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS (Continued) LONG-TERM DEBT (Contmued) Revenue Bonds (Continued) Stormwater Utility Revenue Bonds During the fiscal year ended September 30 1999 the Village issued $7 200 000 Stormwater Utility Revenue Bonds Series 1999 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 1n ranging from $130 000 in fiscal year 2002 to $595 000 m fiscal year 2020 Interest accrues at 4 13% per annum Debt service requirements to maturity are as follows Principal Interest Total Fiscal year ending September 30 2002 $ 130 000 $ 286 622 $ 416 622 2003 185 000 281 253 466 253 2004 195 000 273 613 468 613 2005 205 000 265 558 470 558 2006 215 000 257 093 472 093 2007 2020 6,010,000 2,108,984 8,118,984 $6.940.000 $3 473,123 $10 413,123 Revolving Loan In June 1996 the Village entered into a loan agreement in the amount of $887 983 for the financing of the plannmg and engineering of the proposed sanitary sewer construction project under a State Revolving Fund Loan The proceeds were received m fiscal year 1998 The loan is payable in semi annual payments over 20 years begummg 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 In November 1999 the Village was awarded an additional $6 798 000 under the State Revolvmg Fund Loan which has not yet been disbursed to the Village NOTE 6 COMMITMENTS CONTINGENCIES AND SUBSEQUENT EVENTS Construction Commitments The Village issued land acquisition and capital improvement revenue bonds totalmg $20 000 000 in fiscal years 1999 and 2000 for the acquisition of the property and construction of the Village Civic Center In the prior year the Civic Center project incurred expenditures for the acquisition of land of approximately $3 300 000 For fiscal year ended September 30 2001 approximately $3 400 000 was expended on the Civic Center and vanous other construction projects for street repairs and mamtenance and Village beautification The remaining $13 300 00 in bond proceeds will be expended on the construction of the Civic Center and related projects 19 VILLAGE OF KEY BISCAYNE, FLORIDA NO I ES TO GENERAL PURPOSE FINANCIAL STATEMENTS (Continued) NOTE 6 COMMITMENTS CONTINGENCIES AND SUBSEQUENT EVENTS (Contmued) Litigation The Village is involved in several lawsuits incidental to its operations the outcome of which in the opinion of management and legal counsel would not have a material adverse effect on the financial condition of the Village Risk Management, The Village is exposed to various risks of loss related to torts theft of damage to and destruction of assets errors and omissions and natural disasters for which the Village carries commercial insurance There was na reduction in insurance coverage from coverages in the prior year and there were no settlements that exceeded insurance coverage for each of the past three years Grant Contingency Federal and State programs in which the Village participates were audited m 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 material adverse effect on the financial condition of the Village Subsequent,Event On October 31 2001 the Village purchased the SunTrust Bank building for approximately _$3 500 000 Previously the Village occupied this building as a tenant The building was purchased from the 2000 Series Land Acquisition and Capital Improvement Revenue Bonds proceeds (see Note 5) The Village is currently in the process of finalizing plans to demolish the building and to construct a community center on a portion of the land, NOTE 7 RESERVED/DESIGNATED FUND- BALANCES As of September 30 2001 fund balances m the governmental funds have been reserved or designated for the following purposes Reserved Fund Balances General fund Special disaster relief $ 135 000 Law enforcement 519 389 Compensated absences 503 617 Emergencies 2,000,000 $ 3 158,006 C R C.: 20 VILLAGE OF KEY BISCAYNE FLORIDA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS (Continued) NO IL 7 RESERVED/DESIGNATED FUND BALANCES (Continued) L E Reserved Fund Balances (Continued) Capital project fiords Prepaid expenses $ 152 696 Beach improvements 99 860 Beach park and walk 672 738 Capital improvements 17,881,658 $18,806,952 Pension Trust Fund Employees pension benefits Designated Fund Balances General fund Inspector fees Capital project funds Police/fire equipment and building Holiday colony lighting Capital projects Athletic fields Sidewalk improvements NOTE 8 SEGMENT INFORMATION FOR ENTERPRISE FUNDS $ 1527,148 $ 275 000 $ 40 000 100 000 271 462 185 000 74,000 $ 670 462 The City maintains three enterprise fiords 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 Operating revenues Depreciation Operating income (loss) Interest expense Net income (loss) Net working capital Total assets Bonds payable/loans payable Total equity Sanitary Stormwater Solid Waste Sewer Utility Utility Construction Total $ 518 961 $291 701 $ $ 810 662 273 919 273 919 165 334 27,521 (5 692) 187 163 286 749 286 749 (51 285) 30 814 10 737 (9 734) 1 139 357 131 662 332 255 1 603,274 10 363 021 131 662 913 687 11 379 165 6 940 000 6 940 000 3 350 122 131 662 25 704 3,507 488 21 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 contnbutes 12% and the employees contribute 6% Under the second plan which is available only to sworn or certified police officers and firefighters the Village contributes 12% and'there is no employee contribution Begriming October 1, 1997 the police officers and firefighters which elected to participate in the defined benefit pension plan (see Note 10) were no longer eligible to contribute to the 401(a) plan Employer contributions for the fiscal year ended September 30 2001 were approximately S550 000 while the employee contributions were approximately $91,000 Amendments to the Plan must be authorized by the Village Council NOTE 10 DEFINED BENEFIT PENSION PLAN Plan Description 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 2000 The PERS does not issue a separate audited financial report for the Plan Under this plan all full time police officers and firefighters employed by the Village are eligible to participate The monthly retirement benefit is equal to 2% of the average final compensation for each year of service The calculation for the average fmal 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 During 2001 the Plan was amended to include disability benefits for retirees Amendments to the Plan must be authorized 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 Administrative costs of the plan are financed through investment earnings At October 1 2000 (the latest actuarial valuation date) Plan membership consisted of the following Retirees and beneficiaries currently receiving benefits and terminated employees entitled to benefits but not yet receivmg them 4 Current employees Vested 41 Non -vested 15 Total 56 22 a U Q B U i LI U U C 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 rate 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 I85 of the Florida Statutes The contribution rate for the year ended September 20 2001 was 14% The minimum member contribution rate is 8% This funding policy is designed to limit the Village s exposure to contribute to the Plan Annual Pension Cost and Net Pension Obligation The annual pension cost and net pension obligation as of October 1 2000 was as follows eel 1 r Annual required contribution Interest on net pension obligation Adjustment to annual required contribution Annual pension cost Contributions made Increase in net pension obligation Net pension obligation beginning of year Net pension obligation end of year $ 45 199 (5 216) 6,951 46 934 99,322 (52 388) (57,951) W 9) The annual required contribution for the current year was determined as part of the October 1 2000 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 finding 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 ranging 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 deternmed using the difference between actual and expected return recognized over five years Trend Information Fiscal Year Annual Pension Ended Cost (APC) 9/30/99 9/30/00 9/30/01 $ 2 613 4 485 46 934 Percentage of Net Pension APC Contributed Obligation 100% + $ (62 436) 0% + (57 951) 100%+ (110 339) 23 ffi ft,x LA r L REQUIRED SUPPLEMENTARY INFORMATION r It n. VILLAGE OF KEY BISCAYNE, FLORIDA REQUIRED SUPPLEMENTARY INFORMATION PENSION TRUST FUND SCHEDULE OF EMPLOYER CONTRIBUTIONS Year Annual Ended Required Actual Percentage September 30 Contribution Contribution Contributed 1998 $ $ 32 525 100%+ 1999 1 497 60 949 100%+ 2000 2 636 110 700 100%+ 2001 45 199 230 370 100%+ The information presented in the required supplemental schedule was determined as part of the actuarial valuation at the date indicated Additional information as of the latest actuanal valuation follows Since the Plan uses the aggregate actuarial cost method a schedule of funding progress is not required and has not been provided Valuation date 10/1/00 Actuarial cost method Aggregate actuarial cost method r Amortization method N/A Remammg amortization period N/A Asset valuation method Market value Actuarial assumptions Investment rate of return* 9% per year compounded annually net of investment t related expenses Projected salary increases* 6% Cost of living adjustments N/A t a *Includes inflation at 4% 24 A COMBINING, INDIVIDUAL FUND AND ACCOUNT GROUP STATEMENTS AND SCHEDULES Li r r GENERAL FUND The general fund is the principal operating fund of the Village and is used to account for resources traditionally associated with governments which are not required to be accounted for in another fund. _ VILLAGE OF KEY BISCAYNE FLORIDA GENERAL FUND COMPARATIVE BALANCE SHEETS SEPTEMBER 30 2001 (WITH COMPARATIVE TOTALS FOR SEPTEMBER 30 2000) 201 2000 ASSETS Cash and cash equivalents $ 4 025 611 $ 3 208 836 Investments 1 098 385 884 890 Due from other funds 83 978 Property taxes receivable 13 982 19 241 Accounts receivable 533,359 385 899 Total assets $ 5 671 337 $ 4 582 844 me FERO LIABILITIES AND FUND BALANCES Liabilities Accounts payable and accrued liabilities Compensated absences Deposits and performance bonds Due to other funds Total liabilities $ 673 821 $ 366 563 61 281 1 410 46 454 1 501 819 2 238 331 413017 Fund balances Reserved for Special disaster relief 135 000 100 000 Recreation facilities 99 860 Law enforcement 519 389 344 512 Community center 30 100 Beach park and walk 572 738 Compensated absences 503 617 503 617 Subsequent years budget 204 000 Emergencies 2 000 000 2 000 000 3 158 006 3 854 827 Fah Unreserved Designated for Inspector fees 275 000 275 000 Police/fire equipment and buildmg 40 000 275 000 315 000 Total fund balances 3 433 006 4 169 827 Total liabilities and fund balances $ 5 671 337 $ 4 582 844 25 VILLAGE OF KEY BISCAYNE, FLORIDA GENERAL FUND SCHEDULE OF REVENUES AND EXPENDITURES BUDGET AND ACTUAL Retenues Property taxes Utility taxes Franchise fees Intergovernmental State shared revenue FISCAL YEAR ENDED SEPTEMBER 30 2001 Budget Budgetary Variance Basis Favorable Actual (Unfavorable) $ 8 556 788 $ 8 738 608 $ 181 820 r 1 855 000 1 772,208 (82 792) 740 000 783 513 43 513 900 000 930 169 30 169 Licenses and permits Occupational licenses 38 687 33 212 (5 475) Building permits 900 000 1 275 017 375 017 938 687 1 308 229 369 542 Charges for services 103 020 440 136 337 116 Interest 250 000 291 408 41 408 Grants 50 250 278 345 228 095 Other 18 400 18 400 Total revenue $ I3 393 745 $ 14 561 016 $ 1 167 271 (Continued) a 2 11 U U C.i 0 U C B U 26 VILLAGE OF KEY BISCAYNE FLORIDA GENERAL FUND SCHEDULE OF REVENUES AND EXPENDITURES BUDGET AND ACTUAL (Contained) FISCAL YEAR ENDED SEPTEMBER 30 2001 r L. Budget Budgetary Vanance Basis Favorable Actual (Unfavorable) Expenditures General government Elected officials $ 251 396 $ 54 377 $ 197 019 Administration 610 161 765 707 (155 546) Village attorney 213 000 372 961 (159 961) Total general government 1 074 557 1 193 045 (118 488) Public works 757 589 835 866 (78 277) Building planning and zoning 1 286 950 1 237 837 49 113 Parks and recreation 527 812 473 255 54 557 Public safety 6 377 222 6,385 772 (8 550) Non departmental 752 860 638 027 114 833 t Debt service Principal 975 000 975 000 Interest 631 403 631 875 (472) 1 606 403 1 606 875 (472) Total expenditures $ 12 383 393 $ 12 370 677 $ 12 716 it 27 ri(=II =II t= c 2 tri r L C k4 Pc 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 arrount for the construction of the Village Civic Center which will include administrative offices fire and police Facilities and a Village Community Center VILLAGE OF KEY BISCAYNE FLORIDA CAPITAL PROJECTS FUNDS COMBINING BALANCE SHEETS SEPTEMBER 30 2001 (WITH COMPARATIVE TOTALS FOR SEPTEMBER 30 2000) 7 2 i I I �- r Capital Civic Thigh Improvement Center 2001 2000 ASSETS Cash and cash equivalents $ 1 046 320 $ 15 024 222 $ 16 070 542 $ 1 750 315 Investments 2 197 725 2 197 725 8 324 145 Due from other funds 1 471 719 30 100 1 501 819 Receivables 70 820 70 820 370 768 Prepaid expenses 152 696 152 696 Total assets $ 4 939 280 $ 15 054 322 $ 19 993 602 $ 10 445 228 LIABILITIES AND FUND BALANCES Liabilities Accounts payable and accrued liabilities $ 35 971 $ 340 973 $ 376 944 $ 195 515 Retamage payable 35 000 104 244 139 244 Due to other funds 50 490 Total liabilities 70 971 445 217 516 188 246 005 Fund balance Reserved for Prepaid expenses 152 696 152 696 Beach improvements 99 860 99 860 Beach park and walk 672 738 672 738 Community center 30 100 30 100 Capital improvements 3 272 553 14 579 005 17 851 558 10 199 223 Unreserved Designated for Police/fire equipment and building Holiday colony lighting Capital projects Athletic fields Sidewalk improvements Total fund balances Total liabilities and fluid balances 4 197 847 14 609 105 18 806 952 10 199 223 40 000 40 000 100 000 100 000 271 462 271 462 185 000 185 000 74 000 - 74 000 670 462 670 462 4 868 309 14 609 105 19 477 414 10 199 223 $ 4 939,280 $ 15 054 322 $ 19 993 602 $ 10 445 228 28 VILLAGE OF KEY BISCAYNE FLORIDA CAPITAL PROJECTS FUNDS COMBINING STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES FISCAL YEAR ENDED SEPTEMBER, 30 2001 (WITH COMPARATIVE TOTALS FOR FISCAL YEAR ENDED SEPTEMBER 30 2000) Capital Civic Totals Improvement Center 2001 2000 Revenues Interest $ 189,035 $ 862 530 $ 1 051 565 $ 849 962 Grants 433,652 100 000 533 652 Total revenues 622 687 962 530 1 585 217 849 962 Expenditures Capital outlay Total expenditures 1 627 608 3 402 578 5 030 186 4 899 093 1 627 608 3 402 578 5 030 186 4 899 093 Deficiency of revenues over expenditures (1 004 921) (2 440 048) (3 444 969) (4 049 131) Other financing sources Operating transfers in Bond proceeds Total other fmancmg sources Excess (deficiency) of revenues and other financing sources ova expenditures Fund balances beginning Residual equity transfers Fund balances ending 1 250 000 1 250 000 1 000 000 10 000 000 10 000 000 1 250 000 10 000 000 11 250 000 1 000 000 245 079 7 559 952 7 805 031 (3 049 131) 3 180 170 7 019 053 10 199 223 13 248 354 1 443 060 30 100 1 473 160 $ 4 868 309 $ 14 609 105 $ 19 477 414 $ 10 199 223 U 13 U U a U a U U t.; U �r 29 ENTERPRISE FUNDS Enterpnse finds are used to account for operations that are financed and operated in a mariner similar to pnvate busmess enterpnses 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 1. • Sohd Waste Fund The solid waste fund provides collection service for trash removal Solid waste expenses are pnmanly for curbside collections r r L • 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 rn Fr` 1 r i i f" l t t (--1 I 1 I i VILL AGE OF KE Y BISC AYN E FL ORIDA ENTE RPRISE FUNDS COMBI NING BAL ANCE SHEETS SEPTEMBE R 30 2001 (WIT H COMPARATIVE TOT ALS FO R SEPTEMBE R 30 2000) Stormwater Sanitary Utility Solid Sewei Thigh System Waste Constructi on ASSETS Current assets Cash an d cash equivalents $ 308 685 $ 75 090 $ 332 255 $ 716 030 $ 1 435 420 Inv estments 932 230 932 230 Accounts receivable net 101 341 56 572 157 913 122 747 Total curren t assets 1 342 256 131 662 332 255 1 806 173 1 558 167 Fix ed assets net 8 969 364 373 249 9 342 613 9 616 532 Capitalized loan fees an d in terest 51 401 208 183 259 584 186 018 Total assets $ 10 363 021 $ 131 662 $ 913 687 $ 11 408 370 $ 11 360 717 LIABILITIES AN D FUND EQU ITY Current liabilities Accoun ts payable and accrued liabilities $ 72 899 $ $ $ 72 899 $ 4 189 Du e to o ther funds 33 488 Cu rrent portion of rev enue bon ds payable 130 000 130 000 Total current liabilities 202 899 202 899 37 677 Long term debt Revolvin g loan 887 983 887 983 865 818 Revenue bonds payable 6 810 000 6 810 000 6 940 000 Total liabilities 7 012 899 887 983 7 900 882 7 843 495 Fund equ ity Contributed capital Retained earnings Total fund equity Total liabilities and fun d equ ity 2 682 901 2 682 901 2 682 901 667 221 131 662 25 704 824 587 834 321 3 350 122 131 662 25 704 3 507 488 3 517 222 $ 10 363 021 $ 131 662 $ 913 687 $ 11 408 370 $ 11 360 717 30 VILLAGE OF KEY BISCAYTE FLORIDA ENTERPRISE FUNDS COMBINING STATEMENTS OF REVENUES EXPENSES AND CHANGES IN RETAINED EARNINGS FISCAL YEAR ENDED SEP 1 EMBER 30 2001 (WITH COMPARATIVE TOTALS FOR FISCAL YEAR ENDED SEPTEMBER 30 2000) Operating revenue Operating expenses General and administrative costs Depreciation Total operating expenses Operating income (loss) Stormwater Sanitary Utility Solid Sewer Totals System Waste Construction 2001 2000 $ 518 961 $ 291 701 $ - $ 810 662 $ 781477 79 708 264 180 5 692 349 580 345 595 273 919 273 919 273 919 353 627 264 180 5 692 623 499 619 514 165 334 27 521 (5 692) 187 163 161 963 Non operating revenues (expense) Interest income 70 I30 3 293 16 429 89 852 84 194 Interest expense (286 749) (286 749) (292 798) Total non operating revenues (expenses) (216 619) 3 293 16 429 (196 897) (208 604) Net income (loss) Retamed earnings beginnmg Retained earnings ending (51285) 30 814 10 737 (9 734) (46 641) 718, 506 100 848 14 967 834 321 880 962 $ 667 221 $ 131 662 $ 25 704 $ 824 587 $ 834 321 13 U U 0 0 a U n U U 31 f-"1 ^-I r 1 r -1 r-1 F-1 I-1 f -t r i r i i t 1 I 8 I P VIL LAGE OF KEY BISCAYNE FL ORIDA ENTERPRISE FUNDS CO MBINING STATEMENTS OF CASH FLOWS FISCAL YEAR ENDED SEPTEMBER 30 2001 (WITH COMPARATIVE TOTALS FOR FISCAL YEAR ENDED SEPTEMBER 30 2000) Cash flows from operating activities Ope rating income (loss) Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities Depreciation Change in operating assets and liabilities Incre ase in Accounts receivable Interest receivable Increase (decrease) in Accounts paya ble Retamage payable Due to other funds Total adjustments Net cash provided (used) by operating activ ities Stormwater Sa nitaiy Utility Solid Sewer T otals S ystem Waste Constructio n 2991 2000 $ 165 334 $ 27 521 $ (5 692) $ 187 163 $ 161 963 273 919 (3 066) (33 225) (50 276) 273 919 273 919 (36 291) (10 097) (22 165) (72 441) (142 056) 71 294 (2 279) (305) 68 710 (77 991) (11 750) (33 488) (33 488) 33 488 291 871 (68 992) (22 470) 200 409 65 513 457 205 (41 471) (28 162) 387 572 227 476 Cash flows Flo m capital an d relatin g fin ancin g activities Net proceeds from revolving loan 22 165 22 165 142 056 Payments fo r con stru ction in progress (20 000) Principal paymen t for revenue bonds (260 000) Intere st paid (286 749) (286 749) (292 798) Net cash provided (used) by capital and related fin an cing activ ities (286 749) 22 165 (264 584) (430 742) Cash flows from investing a ctivities Purchase of inv estments (932 230) (932 230) Interest received 70 130 3 293 16 429 89 852 84 194 Net cash provided (used by) investing activities (862 100) 3 293 16 429 (842 378) 84 194 Net increase (decrease) in cash and cash equivalents (691 644) (38 178) 10 432 (719 390) (119 072) Cash and cash equivalents begin ning 1 000 329 113 268 321 823 1 435 420 1 554 492 Cash and cash equivalents ending $ 308 685 $ 75 090 $ 332 255 $ 716 030 $ 1435 420 32 ® © © [. r.J C1 © LA EA r r= GENERAL FIXED ASSETS ACCOUNT GROUP t t r To account for fixed assets not accounted for m proprietary fund operations VILLAGE OF KEY BISCAYNE FLORIDA rR SCHEDULE OF GENERAL FIXED ASSETS BY SOURCE SEPTEMBER 30 2001 (WITH COMPARATIVE TOTALS FOR SEPTEMBER 30 2000) r oPiPoo Aft las 2001 2000 General fixed assets Land $ 16 571 873 $ 16 571 873 Buildings 802 290 730 717 Improvements other than buildings 7 186 103 3 949 753 Equipment 2 306 470 2 970 492 Furniture and fixtures 44 975 134 219 Construction in progress 3 687 177 794 015 Total general fixed assets $ 30 598 888 $ 25 151 069 Investment m general fixed assets by source General fund $ 14 249 454 $ 13 733 888 Capital project funds 12 349 434 7 417 181 Donations 4 000 000 4 000 000 Total investment m general fixed assets $ 30 598 888 $ 25 151 069 33 General government Parks and recreation Public safety VILLAGE OF KEY BISCAYNE FLORIDA SCHEDULE OF GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY SEPTEMBER 30 2001 Improvements Other Than Land Building Buildings $ 4 000 000 $ 31 149 $ 5 924 357 9 240 658 143 641 1 261 746 3 331,215 627 500 Furniture and Equipment Fixtures $ 163 990 193 622 1 948 858 $ 23 500 3 325 18 150 Construction in Progress $ 3 687 177 Total $ 13 830 173 10 842 992 5 925 723 $ 16 571 873 $ 802 290 $ 7 186 103 $ 2,306 470 S. 44 975 S 3 687 177 $ 30 598 888 34 0 El E U U 0 0 F-. Ua 0 U U U U 1 E VILLAGE OF KEY BISCAYNE FLORIDA SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY FISCAL YEAR ENDED SEPTEMBER 30 2001 General government Parks and recreation Public safety r r r - Balance September 30 2000 $ 7 847 539 10 814 774 6 488 756 Additions/ Transfers $ 6 623 087 955 029 209 309 Deletions $ 640 453 926 811 772 342 Balance September 30 2001 $ 13 830 173 10 842 992 5 925 723 $ 25 151 069 $ 7 787 425 $ 2 339 606 $ 30 598 888 35 -.1 ® 1=2 C=3 = if= (-, E3 C 1 CD CJ La ea orA GENERAL LONG—TERM DEBT ACCOUNT GROUP r A a iTr LLI v r P To account for the Village s unmatured principal and long term portion of compensated absences VILLAGE OF KEY BISCAYNE FLORIDA SCHEDULE OF GENERAL LONG TERM DEBT SEPTEMBER 30 2001 (WITH COMPARATIVE TOTALS FOR SEPTEMBER 30 2000) 2001 2000 Amount to be provided for retirement of general long term debt $ 24 562 060 $ 15 387 589 t r w General long term debt payable Rebatable arbitrage Compensated absences payable Revenue bonds payable $ 179 962 $ 97 165 1 202 098 1 135 424 23 180 000 14 155 000 Total general long term debt payable $ 24 562 060 $ 15 387 589 36 f J C °1 1 1= 1 C=3 © 1. U 7 C STATISTICAL SECTION 1 I r 1 VILLAGE OF KEY BISCAYNE FLORIDA GENERAL GOVERNMENTAL EXPENDITURES BY FUNCTION LAST TEN FISCAL YEARS 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 6 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 2001 5 015 845 (2) 6 172 932 452 804 933 096 12 574 677 Note Includes general fund only (GAAP basis) (1) Includes acquisition of land for $9 238 317 for the Village Green (2) General government includes economic development building zoning and planning debt service capital outlay and non departiuental expenditures qatt 37 VILLAGE OF KEY BISCAYNE FLORIDA GENERAL GOVERNMENTAL REVENUES BY SOURCE LAST TEN FISCAL YEARS Licenses Fiscal Property and Inter Utility Franchise Year Taxes Permits Governmental Taxes Fees 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 1995 6 820 807 6 820 807 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 I 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 2001 8 738 608 1 308 229 930 169 1 772 208 783 513 736 881 291 408 14 561 016 Note Includes general fund only (GAAP basis) (1) Includes charges for services grants and other 8 6 0 8 U II 0 U f 0 U U U Uz 0 0 LiI E 38 VILLAGE OF KEY BISCAYNE FLORIDA UTILITY TAX REVENUE BY SOURCE LAST TEN FISCAL YEARS Fiscal Telecom Fuel Year Electricity mumcations 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 2001 1 018 973 492 442 62 833 245 197 715 1 772 208 FRANCHISE FEE REVENUE BY SOURCE LAST TEN FISCAL YEARS 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 2001 678 316 67 855 37 342 783 513 39 VILLAGE OF KEY BISCAYNE FLORIDA PROPERTY TAX LEVIES AND COLLECTIONS LAST IEN FISCAL YEARS Tax Fiscal Assessed Tax Total Percent Year(1) 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 I30 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 95 9 1999 2000 2 232 457 904 8 050 243 7 799 633 96 9 2000 2001 2 499 049 161 9 011 571 8 738 608 96 7 (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 40 B 13 C El 0 13 U 8 U C VILLAGE OF KEY BISCAYNE FLORIDA ASSESSED AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY LAST TEN FISCAL YEARS Net Assessed Tax Real Personal Property Year Property Property Value 1992 $ 1 601 826 518 $ 15 314 570 $ 1 617 141 088 r L. r• w r P^ 1993 1 543 711 468 16 345 662 1 560 057 130 1994 1 715 626 471 26 295 113 1 741 921 584 1995 1 744 363 535 23 093 470 1 767 457 005 1996 1 837 939 078 23 304 054 1 861 243 132 1997 1 978 219 125 24 830 107 2 003 049 232 1998 2 004 007 700 24 166 508 2 028 174 208 1999 2 205 371 189 27 086 715 2 232 457 904 2000 2 470 115 075 28 934 086 2 499 049 161 2001 2 701 084 167 30 749 478 2 731 833 645 Source Miami Dade County Property Appraiser s Office Note Assessed values equal the estimated actual value 41 VILLAGE OF KEY BISCAYN E, FLORI DA PROPE RTY TAX RATES DI REC1 A ND OVERL APPI NG GOVERNMENTS LAST TEN FISC AL YEARS Village of K ey Biscayne Miami Dade Co unty State School District Debt Total Total Debt Total Fiscal V illage Operating Service County SFWM D FIND State Operating Service School Y ear Millage Millage Millage Millage Millage Millagg Millage Millage Millage 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 2001 3 606 5 713 0 552 6 265 0 697 0 039 0 736 8 528 0 848 9 376 0 451 20 434 (1) Village established its own fire district effective October 1 1993 Source Miami Dade Coun ty Property Appraisers Offic e 42 VILLAGE Or KEY BISCAYNE FLORIDA RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR NET BONDED DEBT TO GENERAL GOVERNMENTAL EXPENDITURES LAST TEN FISCAL YEARS Ratio of Debt Total Service to Total General General Fiscal Debt Governmental Governmental Year Principal Interest (1) Service (2) Expenditures Expenditures 1994 $ $ 194 989 $ 194 989 $ 19 053 562 1 0% 1995 755 000 384 661 1 139 661 10 603 914 10 7 1996 785 000 351 089 1 136 089 8 746 746 13 0 1997 820 000 315 901 1 135 901 9 494 861 12 0 1998 855 000 277 825 1 132 825 10 034 276 11 3 1999 895 000 241 329 1 136 329 10 843 083 10 5 2000 935 000 595 767 1 530 767 12 074 903 12 7 2001 975 000 631 875 1 606 875 12 574 677 12 8 Note Includes general fund only No debt pnor to 1994 "^ (1) Excludes bond issuance and other costs (2) Debt service on revenue bonds L r� -43 Junsdiction VILLAGE OF KEY BISCAYNE FLORIDA SCHEDULE OF DIRECT AND OVERLAPPING BONDED DEBT GENERAL OBLIGATION BONDS (IN THOUSANDS) SEPTEMBER 30 2001 Net General Percentage Amount Obligation Applicable Applicable Taxable Bonded to to Property Debt Key Key Value (I1 Outstanding Biscayne Biscayne Direct Village of Key Biscayne $ 2 731 834 $ 30 120 100 00% $ 30 120 Overlapping Miami Dade County Miami Dade County Schools 105 398 523 264 763 (2) 106 269 507 856 955 (2) 2 59% (3) 6 857 2 57% (3) 22 023 $ 1 121 718 $ 28 880 (1) Source Miami Dade County Property Appraisers Office Taxable Property Value reflects January 1 2001 amounts (2) Source Miami Dade County Finance Depaitment Net General Obligation Bonded Debt outstanding figures are as of September 30 2001 (3) Based on the percentage of the County s and School Boards tax roll valuation comprised of real and personal property situated in the Village of Key Biscayne B Q Q B U U 44 7's VILLAGE OF KEY BISCAYNE FLORIDA RATIO OF NET BONDED DEBT TO ASSESSED VALUE AND PER CAPITA LAST TEN FISCAL YEARS Ratio of Net Net Bonded Bonded Net Debt to Debt Fiscal Assessed Bonded Assessed Per Year Population Value (1) Debt (2) Value Capita 1994 8 887 $ 1 560 057 130 $ 9 200 000 0 59% $ 1 035 1995 8 894 1 741 921 584 8 445 000 0 48 949 1996 8 886 1 767 457 005 7 660 000 0 43 862 1997 8 937 (3) 1 861 243 132 6 840 000 0 37 765 1998 9 471 (4) 2 003 049 232 5 985 000 0 30 632 1999 9 689 (5) 2 028 174 208 22 290 000 1 1 2 300 2000 10 507 (6) 2 223 956 515 21 220 000 0 95 2 190 2001 10 607 (7) 2 499 049 161 30 120 000 1 2 2 823 Note Village had no debt prior to 1994 (1) Net bonded assessed actual value of taxable property (2) Net bonded debt represents revenue bonds (3) As of April 1997 University of Flonda Economic and Business Research (4) As of April 1998 University of Honda Economic and Busmess Research (5) As of July 1999 University of Flonda Economic and Business Research (6) Bureau of Census 2000 Census Data (7) As of April 2001 University of Flonda Economic and Business Research 45 VILLAGE OF KEY BISC AYNE FLORIDA DEM OGRAPHICS ST ATISTICS POPULATIO N Estimates of Population by Age Year 2000 Under 20 Years 20 to 64 Ye ars 65 Years or Older Number Percent Number Perce nt Number Perce nt Total 2 697 26 6 176 59 1 634 15 10 507 Estimates of Population by Race Anglo_ Black Hispanic T ot al 2000 5 228 48 5 231 10 507 INCOME* Per Capita Income Average Per Anglo Black Hispanic Capita 1990 $ 44 615 $ 24 577 $ 28 341 $ 37 629 UN EMPLOYMENT RATES** (Percent) 1994 1995 1996 ,1997 1998 1999 2000 2001 Miami Dade Coun ty 7 9 6 8 7 8 7 1 6 7 5 9 5 6 5 7 Village of Key Biscayn e 3 6 3 1 3 6 3 3 3 1 2 7 2 6 2 8 * Sou rce Bureau of Census Income Division 2000 Censu s Not Available Until April Jun e 2002 ** Sou rce State Department of Labor 46 ""l C ez CO "1 (" 73 n C73 , C'1 a.l = cro VILLAGE OF KEY BISCAYNE FLORIDA PROPERTY VALUE CONSTRUCTION AND BANK DEPOSITS LAST TEN FISCAL YEARS Residential Commercial (000s Omitted) Total Total County Village Fiscal Permits # of # of of Bank Bank Year Issued Permits Valuation Permits Valuation Construction Deposits (1) Deposits (2) 1992 35 b $ 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 F 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 64I 85,244 371 152 9 359 770 94 604 141 38 539 107 364 973 2001 749 667 59 607 528 82 10 485 477 70 093 005 45 064 000 328 602 f (1) State of Flonda Division of Banking as of June 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 f , (2) Deposits within Village of Key Biscayne limits Information for all years presented was not available. P -47 VILLAGE OF KEY BISCAYNE FLORIDA PRINCIPAL TAXPAYERS SEP1'LMBER )0 2001 Taxpayer Ocean Club Inc Sonesta Beach Resort LP GB Hotel Partners Ltd Grand Bay Tower Associates Key Biscayne Shopping Center Gallena of Key Biscayne Pitu Inc Red Dragon s Sands Ltd Finivest Investment Heidrun Eckes Chantre Source Miami Dade County Appraisers Office 48 % of Total Taxable Assessed Valuation Valuation $ 39 359 096 157% 37 300 000 1 49% 23 341 830 0 93% 15 735 600 063% 8 672 526 0 35% 7 859 001 031% 5 922 735 024% 5 655 1I0 023% 4 430 881 0 18% 3 569 350 0 14% $ 151 846 129 6 07% a Q U Q 0 E. U U n B 0 5 E E C U E VILLAGE OF KEY BISCAYNE FLORIDA MISCELLANEOUS STATISTICAL DATA SEPTEMBER 30 2001 r� oit rlsg 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 Education Attendance Centers 2 Number of Students 1 051 Number of Teachers 67 Miami Dade County Water & Sewer Authonty Number of Customers Average Daily Consumption 1 941 650 000 gallons Sewers Number of Customers 998 Fire Hydrants 243 Building Permits Issued 1955 Recreation and Culture Number of Parks Number of Libranes Number of Tennis Centers Number of Recreational Centers Employees Full Time 3 1 (Operated by Miami Dade County) 1 1 91 49 M"3 Cc, r-) CM W COMPLIANCE SECTION n3. 7- k Y �y/ a Rachlin Cohen & Holtz LLP Certified Public Accountants & Consultants Report of Independent Certified Pubhc 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 Florida We have audited the general purpose financial statements of the Village of Key Biscayne Florida (the Village) as of September 30 2001 and for the year then ended and have issued our report dated November 29 2001 We conducted our audit m accordance with auditing standards generally accepted in the Umted States 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 general purpose financial statements are free of matenal 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 material effect on the determination of financial statement amounts However providmg an opinion on compliance with those provisions was not an objective of our audit and accordingly we do not express such an opinion The results of our tests disclosed no instances of non compliance that are required to be reported under Government Auditing Standards Internal Control over Financial Reporting In plannmg and performing our audit we considered the Village s internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the general purpose financial statements and not to provide assurance on the internal control over financial reporting Our consideration of the mternal control over financial reporting would not necessanly disclose all matters in the internal control over financial reporting that might be material wealmesses A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the nsk that misstatements in amounts that would be matenal in relation to the financial statements being audited may occur and not be detected withm a timely period by employees in the normal course of performing their assigned functions We noted no matters mvolvmg the internal control over financial reporting and its operation that we consider to be matenal weaknesses 50 One Southeast Third Avenue Tenth Floor Miami Flonda 33131 Tel 305 377 4228 Fax 305 377 8331 Offices in Miami Ft Lauderdale West Palm Beach Stuart wwwrchcpa coin Member fSurmmt Intern honalA so t In th fhce nip pal t thro gh tth Id Member f th Amer an hutitut f Cedfied P bb A untants and memo of the Fl d Institute f Cent fled Publ A untanis Honorable Mayor Village Council and Village Manager Village of Key Biscayne Florida Page Two 4. — r ts- 1"! However we noted other matters that we have reported to management in the schedule of findings accompanying this report This report is intended solely for the information and use of the Mayor Village Council management and regulatory agencies 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 Weeel ea- £-4 e LLr Miami Florida November 29 2001 51 Rachlin Cohen & Holtz LLP Certified Public Accountants & Consultants Management Letter m Accordance with the Rules of the Auditor General of the State of Florida Honorable Mayor Village Council and Village Manager Village of Key Biscayne Flonda We have audited the general purpose financial statements of the Village of Key Biscayne Florida (the Village) as of and for the year ended September 30 2001 and have issued our report thereon dated November 29 2001 We conducted our audit in accordance with auditing standards generally accepted in the United States and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States and with Chapter 10 550 Rules of the Auditor General We have issued our report of Independent Certified Public Accountants on Compliance and on Internal Control over Financial Reporting and our Report of Independent Certified Public Accountants on Compliance and on Internal Control over Compliance Applicable to Each Major State r°- Project and Schedule of Findings and Questioned Costs Disclosures in those reports which are dated November 29 2001 should be considered in conjunction with this management letter yr- r In connection with our audit of general purpose financial statements of the Village for the year ended September 30 2001 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 outlmed in Rule 10 554(1)(g) 1 No inaccuracies shortages defalcations fraud and/or violations of laws rules regulations and contractual provisions were reported in the preceding annual financial audit 2 Recommendations made in the preceding annual fmancial audit have been implemented 3 The Village during fiscal year 2001 was not in a state of financial emergency as defined by Flonda Statutes 218 503(1) The Village has no deficit fund balances for two consecutive years 4 Recommendations to improve the Village s present financial management and accounting procedures are accompanying this report in the schedule of findings and questioned costs 5 The Village was in compliance with Section 218 415 Flonda Statutes 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 and contractual provisions 52 One Southeast Thud Avenue Tenth Floor Miami Florida 33131 Tel 30o 377 4228 Fax 30D 377 8331 Offices in Miami Ft Lauderdale West Palm Beach Stuart Zn wrchcpacorn Memb fS mnutlnternahonal As tes In wth Ica mpnn pal to through tthe cold M mb Mh AmencanI label fC rtlfi dPubl Ac untant and member fth Plondalnshtut fCarhfi dPubh Act untants L.AmM Honorable Mayor Village Council and Village Manager Village of Key Biscayne Flonda Page Two b Made any illegal or improper expenditures c Had improper or inadequate accountmg procedures other than those noted in the schedule of findings and questioned costs accompany this report d Failed to record financial transactions e Had other inaccuracies shortages defalcations or mstances of fraud 7 The annual financial report for the year ended September 30 2001 has been filed with the Department of Bankmg and Finance pursuant to Section 218 32(1)(a) Florida Statutes and is m agreement with the annual audited financial audit report for the fiscal year ended September 30 2001 8 The Village was mcorporated by Laws of Florida 90 142 There were no component units related to the Village 9 During the course of our audit we applied financial condition assessment procedures pursuant to Rule 10 566(8) It is management s responsibility to monitor the Village s financial condition and our financial condition assessment which was performed as of the Village s fiscal year end was based on representations made by management and the review of financial information provided by the Village There were no findings that identified detenoratmg financial ^a^ conditions This report is intended solely for the mformation 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 1« Ctow C a t e-, Miami Honda November 29 2001 53 (5114. F Rachlin Cohen & Holtz u Certified Public Accountants & Consultants Report of Independent Certified Public Accountants on Compliance and Internal Control Over Compliance Applicable to Each Mayor State Financial Assistance Protect Honorable Mayor Village Council and Village Manager Village of Key Biscayne Florida We have audited the compliance of the Village of Key Biscayne, Florida (the Village) with the types of compliance requirements described m the Executive Office of the Governor s State Projects Compliance Supplement, that are applicable to each of its major state financial assistance projects for the year ended September 30 2001 The Village s major state financial assistance projects are identified in the summary of auditors results section of the accompanying schedule of findings and questioned costs Compliance with the requirements of laws regulations contracts and grants applicable to each of its major state financial assistance projects is the responsibility of the Village s management Our responsibility is to express an opinion on the Village s compliance based on our audit We conducted our audit in accordance with auditing standards generally accepted in the United States the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States and Chapter 10 550 Rules of the Auditor General Those standards and Chapter 10 550 Rules of the Auditor General required that we plan and perform the audit to obtain reasonable assurance about whether non compliance with the types of compliance requirements referred to above that could have a direct and material effect on a major state financial assistance project occurred An audit includes examining on a test basis evidence about the Village s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances We believe that our audit provides a reasonable basis for our opinion Our audit does not provide a legal determination on the Village s compliance with those requirements In our opinion the Village complied m all material respects with the requirements referred to above that are applicable to each of its major state financial assistance projects for the year ended September 30 2001 Internal Control Over Compliance The management of the Village is responsible for establishing and mamtainmg effective internal control over compliance with requirements of laws regulations contracts and grants applicable to state financial assistance projects In planning and performing our audit, we considered the Village s internal control over compliance with requirements that could have a direct and material effect on a major state financial assistance project to determine our auditmg procedures for the purpose of expressing our opinion on compliance and to test and report on mtemal control over compliance in accordance with Chapter 10 550 Rules of the Auditor General 54 One Southeast Thud Avenue Tenth Floor Miami Florida 33131 Tel 30o 377 4228 Fax 305 377 8331 Offices in Miami Ft Lauderdale + West Palm Beach Stuart wwwrchcpa corn Member f5tmumtlnte bonalA t In th ffi mpnn p Iota through tthew Id Member fth Am aninst tote fC td dPubl A mtant and member fth bllondainsidut fCerbfi dPubh A untants Honorable Mayor Village Council and Village Manager Village of Key Biscayne Florida Page Two Our consideration of the internal control over compliance would not necessanly disclose all matters in the internal control that might be material weaknesses A matenal weakness is a condition m 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 non comphance with applicable requirements of laws regulations contracts and grants that would be matenal in relation to a major state financial assistance program being audited may occur and not be detected withm a timely penod by employees m the normal course of performmg their assigned functions We noted no matters mvolvmg the internal control over compliance and its operation that we consider to be matenal weaknesses This report is intended solely for the information and use of the Mayor Village Council management Auditor General of the State of Flonda and applicable state grantor agencies 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 t Miami Florida November 29 2001 55 i VILLAGE OF KEY BISCAYNE, FLORIDA SCHEDULE OF EXPENDITURES OF STATE FINANCIAL ASSISTANCE FISCAL YEAR ENDED SEPTEMBER 30 2001 State Agency and Program Title State State Contract CFSA Grant No No Expenditures , Florida Department of Environmental Protection Direct Programs Florida Beach Erosion Control 37 003 99DA1 $ 193 652 Florida Recreation Development Assistance 37 017 F8054 100 000 Division of Recreation and Parks 37 047 M9812 100 000 393 652 rot r Department of Community Affairs Direct Programs Local Government Comprehensive Planning Assistance and Review 52 005 01 DR 14 11 23 02 008 40 000 Emergency Management Preparedness and Assistance Grant 52 009 02 CP 04 11 23 02 216 49 974 89 974 $ 483 626 56 VILLAGE OF KEY BISCAYNE FLORIDA NOTE TO THE SCHEDULE OF EXPENDITURES OF STATE FINANCIAL ASSISTANCE FISCAL YEAR ENDED SEPTEMBER 30 2001 NOTE 1 BASIS OF PRESENTATION The accompanying schedule of expenditures of state financial assistance awards includes the state grant activity of the Village of Key Biscayne and is presented on the accrual basis of accounting The information m this schedule is presented in accordance with the requirements of Chapter 10 550 Rules of the Auditor General Therefore some amounts presented m this schedule may differ from amounts presented m or used in the preparation of the general purpose financial statements 7 l fi 57 VILLAGE OF KEY BISCAYNE FLORIDA SCHEDULE OF FINDINGS AND QUESTIONED COSTS FISCAL YEAR ENDED SEPTEMBER 30 2001 SECTION I - SUMMARY OF AUDITOR'S RESULTS Ftnanczal Statements Type of auditor s report issued Unqualified Opinion Internal control over financial reporting Matenal weakness(es) identified9 yes X no Reportable condition(s) identified not considered to be material weakness' yes X none Non compliance matenal to financial statements noted yes X no State Ftnanczal Assistance Projects �ftft- r I L L titoft Internal control over major programs Matenal weakness(es) identified? Reportable condition(s) identified not considered to be matenal weakness9 yes X no yes X none Type of auditor s report issued on compliance for major programs Unqualified Opinion Any audit findings disclosed that are required to be reported m accordance with Section 215 97(7)(f) Flonda Statutes9 yes X No Identification of major programs CSFA Numbers Name of State Program 37 003 Flonda Beach Erosion Control 37 047 Division of Recreation and Parks Dollar threshold used to distinguish between Type A and Type B programs $300 000 PRA r 58 VILLAGE OF KEY BISCAYNE FLORIDA SCHEDULE OF FINDINGS AND QUESTIONED COSTS FISCAL YEAR ENDED SEPTEMBER 30 2001 SECTION II - CURRENT YEAR COMMENTS AND RECOMMENDATIONS New Pronouncement , 1 I I s t r Governmental Accounting Standards Board Statement No 34 Basic Financial Statements — and Management s Dzscusszon 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 2003 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 create an action plan for implementation Management s Response The Village is currently reviewing the requirements and initiating a plan SECTION III - STATE AWARD FINDINGS AND QUESTIONED COSTS None 4 59