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HomeMy Public PortalAboutComprehensive Annual Financial Report Fiscal Year Ended 09-30-02.tifr� 7 C VILLAGE OF KEY BISCAYNE, FLORIDA COMPREHENSIVE ANNUAL FINANCIAL REPORT FISCAL YEAR ENDED SEPTEMBER 30 2002 Prepared by THE FINANCE DEPARTMENT VILLAGE OF KEY BISCAYNE, FLORIDA COMPREHENSIVE ANNUAL FINANCIAL REPORT FISCAL YEAR ENDED SEPTEMBER 30 2002 TABLE OF CONTENTS PAGE r L INTRODUCTORY SECTION Letter of Transmittal 1 Village Officials xn Certificate of Achievement for Excellence in Financial Reporting xin Village Organizational Chart xiv II FINANCIAL SECTION REPORT OF INDEPENDENT CER1 IPIED PUBLIC ACCOUNTANTS 1 Plrta I L r r r®s L. L GENERAL PURPOSE FINANCIAL STATEMENTS (COMBINED STATEMENTS OVERVIEW) Combined Balance Sheet - All Fund Types and Account Groups 3 Combined Statement of Revenues Expenditures and Changes m Fund Balances All Governmental Fund Types 4 Statement of Revenues and Expenditures— Budget and Actual — General Fund 5 Combined Statement of Revenues Expenses and Changes in Retained Earnings Enterprise Funds 6 Combined Statement of Cash Flows Enterprise Funds 7 Statement of Changes in Plan Net Assets Pension Trust Fund 8 Notes to General Purpose Financial Statements 9 Required Supplementary Information 26 COMBINING INDIVIDUAL FUND AND ACCOUNT GROUP STATEMENTS AND SCHEDULES GENERAL FUND Comparative Balance Sheets 27 Schedule of Revenues and Expenditures Budget and Actual 28 CAPITAL PROJECTS FUNDS Combining Balance Sheets 30 Combining Statements of Revenues Expenditures and Changes in Fund Balances 31 ENTERPRISE FUNDS Combining Balance Sheets 32 Combining Statements of Revenues Expenses and Changes in Retained Earnings 33 Combining Statements of Cash Flows 34 VILLAGE OF KEY BISCAYNE, FLORIDA TABLE OF CONTENTS II FINANCIAL SECTION PAGE ACCOUNT GROUPS GENERAL FIXED ASSETS ACCOUNT GROUP Schedule of General Fixed Assets By Source 35 Schedule of General Fixed Assets By Function and Activity 36 Schedule of Changes m General Fixed Assets By Function and Activity 37 GENERAL LONG TERM DEBT ACCOUNT GROUP Schedule of General Long -Term Debt 38 III STATISTICAL SECTION General Governmental Expenditures by Function 39 General Governmental Revenues by Source 40 Utility Tax Revenue By Source Franchise Fee Revenue by Source 41 Property Tax Levies and Collection 42 Assessed and Estimated Actual Value of Taxable Property 43 Property Tax Rates Direct and Overlappmg Governments 44 Ratio of Annual Debt Service Expenditures for Net Bonded Debt to General Governmental Expenditures 45 Schedule of Direct and Overlapping Debt General Obligation Bonds 46 Ratio of Net Bonded Debt to Assessed Value and Per Capita 47 Revenue Bond Coverage 48 Demographic Statistics 49 Property Value Construction and Bank Deposits 50 Pnncipal Taxpayers 51 Miscellaneous Statistical Data 52 IV COMPLIANCE SECTION Report of Independent Certified Public Accountants on Compliance and on Internal Controls over Financial Reporting Based on an Audit of Fmancial Statements Performed in Accordance with Government Auditing Standards 53 Management Letter m Accordance with the Rules of the Auditor General of the State of Flonda 55 Report of Independent Certified Public Accountants on Compliance and Internal Control Over Compliance Applicable to a Major State Financial Assistance Project 57 Schedule of Expenditures of State Fmancial Assistance 59 Note to Schedule of Expenditures of State Fmancial Assistance 60 Schedule of Findings and Questioned Costs 61 B U II F6i c.� U 0 U U U r a INTRODUCTORY SECTION F I n L I r" L 1, r L La f k r_ February 19 2003 r f L. r -A Vlag Councl Joe I Rasco Mayor Robert Oldakowski Vice Mayor Scott Bass Martha Erb."' Leon Broucek Alan H Fem Mortimer Fr ed James L Peters V Ilag Manager Jacqueline R Menendez 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 2002 is hereby subnutted Responsibility for both the accuracy of the data and the completeness and fairness of the presentation mcluding 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 gain 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 orgamzationai chart, a list of principal officials and the 2001 Certificate of Achievement for Excellence in Fmancial Reporting The financial section includes the report of the independent certified public accountants on the general purpose financial statements the general purpose financial statements notes to the general purpose financial statements required supplementary mformation and the combining individual fund and account group financial statements and schedules The statistical section includes unaudited selected financial and demographic information The couiphance section contains those reports required to comply with Goveiiuiient Accounting Standards and the Rules of the Auditor General of the State of Flonda Reporting Entity and its Services The Village includes for financial reporting purposes m conformance with Governmental Accounting Standards Board (GASB) Statement No 14 all funds and account groups for which the Village is financially accountable The Village currently provides services associated with the following departments• • Buildmg Zoning and Plannmg • Police • Fire Rescue • Recreation • Public Works • Finance and Administrative Services • Office of the Village Clerk + Office of the Village Manager • Office of the Village Attorney 85 West McIntyre Street Key Biscayne Honda 33149 (305) 365 5514 (305) 365-8936 MISSION STATEMENT TO PROVIDE A SAFE QUALITY COMMUNITY ENVIRONMENT FOR ALL ISLANDERS THROUGH RESPONSIBLE 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 govemmg 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 policies and ordinances of the Village Council for overseeing the day to day operations of the Village and appointing and supervising the department heads of the 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 south, and by Crandon Park, a 960 acre park administered by Miami -Davie County to the north The Village currently has an area of approximately 1 25 square miles and population estimated at 10 608 residents Maior Initiatives For the Year The Village s staff following specific directives from the Village Council has been actively involved in a variety of projects designed to provide the Island s residents with the best environment through responsible government During fiscal year 2002 the most notable examples of the Village s efforts included continuing niipiovements and additions to Key Biscayne s mfrastructure beautification projects designed to further enhance the Village s specific style and character a major beach rnounshment project completion of the Ocean Park Phase II implementation of a Community Information Strategy and Action Plan, enhancement of the Senior Program, hiring a new manager investigating options for increased playing fields and implementation of an equipment replacement program for the Fire Rescue department To begin with fiscal year 2002 witnessed completion of the Beach Renounshment Project This project accomplished placmg 100 000 cubic yards of beach quality sand on the Village beach from the Commodore Club southern boundary to the Towers northern boundary State funding was secured in the amount of $1 189 million and county funding supplied an additional $670 000 The completion of this project significantly enhanced the effected shoreline and restored a vital buffer between the coast and the Atlantic Ocean ii U a1 Ldr 11 Li U C t 0 C L" L� E U 0 Honorable Mayor Village Council and Citizens Village of Key Biscayne hi the previous year Ocean Park Phase I was built consisting of a palm plaza a trellised pavilion landscaping and retaining walls and water and sewer hook ups Phase I combined the unparalleled beauty provided by the Atlantic Ocean and the Key Biscayne beach which is undeniably the Village of Key Biscayne s greatest asset The intent of the Beach Park Plan was to achieve simplicity by design and to provide access for Village Residents to our greatest amenity Completion of Ocean Park Phase II was celebrated in the summer of 2002 Included in this phase was a nine foot wide Beachfront Promenade installation of an interactive water display as its center point construction of a 1 060 square foot open air pavilion construction of restrooms with outdoor shower facilities and construction of an observation tower with storage areas A landscaped open space has been designated as a natural passive area with no programmed activity Modeled after traditional South Florida landscapes a variety of native palms trees and shrubbery will provide the primary palette for this area The beach area was extended westward from the ocean 225 feet r The Community Information Strategy and Action Plan was launched during fiscal year 2002 with great success The continued improvement of cable channel 16 was realized through increased public service airtime and enhanced programming under the direction of Village staff Two PEG channels are underway and will further increase programming abilities in the very near future Most computer workstations were replaced with new units in fiscal year 2002 with the ultimate goal of an entire network of all departments a realizable goal in the next fiscal year Emphasis was placed on website improvements and completion is on schedule This project will greatly enhance residents availability to information regarding Village departments and services that are provided including a message board feature Also included in this project are formation of a periodic newsletter and formulation of a policy regarding media and press relations Fiscal year 2002 saw the hiring of its first Seniors Coordinator responsible for addressing the needs of the senior citizens of the Village Programs to educate seniors as to the many services available on a federal state and local level have been introduced This year also saw the pilot program for senior transportation implemented with an eye for a permanent program as a solution to this cntical need In response to one of the goals and objectives set for fiscal year 2002 and with the retirement of the Village s first and only manager the search for a new Village Manager was launched A nationwide search yielded five finalists from which the new manager was selected Jacqueline R. Menendez a local candidate was selected and took over as Village manager on May 6 2002 The issue of increasing the amount of playing fields to its residents was addressed during fiscal year 2002 Due to the physical limitations of being an island community alternatives were sought to provide these much needed facilities The Village was successful in negotiating an agreement with the Catholic Church to utilize their school fields Another vacant parcel of land was leased from a second party to accommodate the Village s soccer program iii Honorable Mayor Village Council and Citizens Village of Key Biscayne This year also saw the implementation of the first departmental equipment replacement program The Fire Rescue Department established based upon critical needs a replacement program to address aging fire apparatus and support vehicles During fiscal year 2003 two new pieces of firefighting apparatus will be placed in service In the near future provision has been made and funds reserved for replacement of rescue ambulances and related support vehicles This program will insure that Village residents and visitors continue to receive the superior service and call response that can be expected from this department Finally fiscal year 2002 was also a year in which significant progress was made in the area of the Village Civic Center The Fire Station and Police/Administration buildings neared completion at year end These state of the art facilities will house all Village depaituients and are designed to stress a user friendly atmosphere A land purchase of the corner parcel of Crandon Boulevard and McIntyre Street completed the scheme of a continuous governmental civic center area For the Future Village of Key Biscayne residents can be assured that dunng the fiscal year 2003 their government would continue to provide them with more and better services For instance increased code compliance efforts will result in improvements that will positively affect all residents administered by Building Zoning & Planning. This department will continue to improve the quality of services offered to our citizens During fiscal year 2003 it is intended to place the building permit system on the mtemet This will enable citizens and contractors to track the status of plans permits and inspections The department is stonng plans on CD ROMS This enables retrieval of plans and printing of copies in the Building Zonmg & Planning office Keeping with the improvement theme the Public Works Department will also be involved m numerous infrastructure improvements in the fiscal year 2003 Major protects for 2003 include replacement of street signs initiation of master plans for Crandon Boulevard improvements and Harbor Drive improvements establishing a tree replacement program, installation of lighting and landscaping improvements on Grapetree Drive and assisting in the parking improvements at the local middle school In addition Public Works will continue to oversee the contracts awarded for solid waste collection, street sweeping and catch basin eleanmg and maintenance as well as all Village landscaping and maintenance contractors Important m maintaining and enhancing of the Villagers unique lifestyle are the activities of the Recreation Dena' talent During fiscal year 2003 the Department will continue to offer a swiniuung program at the Miami Rowing and Water Sports Center Also the department has increased efforts to meet the needs of Key Biscayne s senior population Working with Keep Seniors on. Key Biscayne Committee (KSOKB) the department is developing a program that will meet the information recreation and service needs of this valued population. iv S LB N I a U U C U U Honorable Mayor Village Council and Citizens Village of Key Biscayne Participation m the Key Biscayne Athletic Club activities contmues to mcrease as well as the number of programs they provide Next year new programs that started in fiscal year 2002 will be continued and improved The department will also continue to host the following special events Halloween Weekend Celebration Key Biscayne Lighthouse Run & Walk Concert Series Wmterfest Spnng Egg Hunt and the Fourth of July Fireworks The department continues to assist civic groups with their special events as well contract with outside agencies to provide additional programs and facilities The department shall finalize planning for the new Community Center Associated with the Village s recreational activities is the presence in our community of the Key Biscayne branch of the Miami Dade Library District Due to the Village s donation to the library of $42 000 in fiscal year 2002 the facility will provide an additional 25 hours per week of operation includmg Sundays between October and May The Village Police Depadiuent is also anticipating fiscal year 2003 to be most productive A number of safety and drug abuse resistance programs are taught to students in all the Village s schools as well as pedestrian safety The Village benefits from all of the efforts of the police department as it enjoys the lowest crime rates in all of Miami Dade County Patrol officers will increase the checking of businesses at night watching for unlocked doors and open windows Community Oriented Policing (COP) officers conduct door to door visits of businesses and residences providing cnme prevention information hurricane preparedness pamphlets registering bicycles and conducting security surveys will all increase during fiscal year 2003 As always new residents will continue to receive welcome baskets from the Chamber of Commerce delivered by police officers Departmental Focus Each year the City will focus attention on the efforts and accomplishments of a selected department This year the Recreation Department has been selected for this purpose L The Department is composed of a Recreation Director a Sports Coordinator a Seniors Coordmator and part time volunteer Administrative Assistants All members of the department work towards a common goal to contribute to safe quality community recreational programs designed to meet the diverse needs of its residents The department annually hosts the following special events Halloween Haunted House Key Biscayne Lighthouse Run & Walk, Concert Senes Wmterfest Spnng Egg Hunt and the Fourth of July Fireworks All of these events are provided at no cost to participants The department continues to assist civic groups with their special events as well as contract with outside agencies to provide additional programs and facilities The department is looking forward to construction of the new Community Center which v II Honorable Mayor Village Council and Citizens Village of Key Biscayne will increase the range of programs available to the Village Funds have been reserved to purchase a new bus to transport participants to vanous events in comfort and convenience The staff position of Seniors Coordinator has addressed a vital need to provide attention to the island s senior citizens FINANCIAL INFORMATION Accounting System, Internal Control and Budgetary Control The Village's accounting records for governmental funds operations are maintained on a modified accrual basis with revenues being recorded when available and measurable and expenditures being recorded when the services or goods are received and the liabilities are incurred Budgetary control is maintained at the departmental level Expenditures that could result in an oveiexpended balance are not released until additional appropriations are made available Internal accounting controls have been designed to provide reasonable but not absolute assurance regarding safeguarding of assets against loss from unauthorized use or disposition and the reliability of financial records for preparing financial statements and maintaining accountability The concept of reasonable assurance recognizes that the cost of the controls should not exceed the benefits likely to be derived and the evaluation of costs and benefits requires estimates and judgment by management All internal control evaluations occur within the above framework We believe the Village s internal accounting controls adequately safeguard assets and provide reasonable assurance of proper recording of financial transactions 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 Aceountmg Standards Board (GASB) 2 Financial Accounting Standards Board (FASB) 3 Auditor General of the State of,Flonda 4 Charter of the Village of Key Biscayne 5 Government Finance Officers Association of the United States and Canada (GFOA) General Goveiiuiient 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 fiord Q C C C C p B U C C p Honorable Mayor Village Council and Citizens Village of Key Biscayne 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 vanous sources are shown in the following schedule REVENUES (GAAP Basis) Net % Sources FY 2002 FY 2001 Changes Change 444, Property Taxes Utility Taxes Franchise Fees Intergovernmental Licenses and Permits Charges for Services Other Interest Grants Total Revenues $ 9 569 030 2 258 931 639 072 971 136 859 435 336 134 74 959 89 838 196 919 $14 995 454 EXPENDITURES AND TRANSFERS (GAAP Basis) Function General Government Public Works Building Zoning & Planning Parks and Recreation Public Safety Debt Service Non Departmental Capital Outlay Transfer to Capital Improvement Fund Total Expenditures and Transfers vii $ 8 738 608 $ 830 422 10% 1 772 208 486 723 27% 783,513 (144 441) 18% 930 169 40 967 4% 1 308 229 (448 794) 34% 440 136 (104 002) 24% 18 400 56 559 307% 291 408 (201 570) 69% 278 345 (81 426) 29% $14 561 016 $434438 Net FY 2002 FY 2001 Change Change $ 1 486 638 $ 1 270 062 802 218 933 096 1 264 943 1 235 529 539 058 452 804 6 926 254 6 172 932 2 435 845 1 606 875 799 424 630 657 243 372 272 722 1 250 001 $14 497 752 $13 824 678 $ 216576 (130 878) 29 414 86 254 753 322 828 970 168 767 (29 350) (1 250 001) $ 673 074 17% 14% 2% 19% 12% 52% 27% 11% 100% Honorable Mayor Village Council and Citizens Village of Key Biscayne Capital Protects Fund During fiscal year 1995 the Village Council established a Capital Improvement Fund for various infrastructure projects of a multi year character Funding for these projects was intended to come from annual appropriations in the General Fund budget These appropriations were recorded as operating transfers from the General Fund Durmg fiscal year 1999 the Village Council established a Civic Center Fund to account for the land acquisition, plammiag, and construction of a new Village Civic Center to house Police Frre/EMS and administration offices for the Village of Key Biscayne Funding for this project was from a series of Revenue Bonds the first of which was issued July 30 1999 Enterprise Funds Enterprise funds are established to finance and account for the acquisition operation and maintenance of facilities and services and the cost of providing these goods and services on a continuing basis is financed through the collectipn of charges from users The three enterprise funds are I Stormwater Utility System 2 Solid Waste 3 Sanitary Sewer System The Village Council established a budget for the Sanitary Sewer System during the fiscal year A state loan was 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 & Jerngan Inc was hired to design the system Plans and specifications have been completed and approved by all appropriate agencies At present this project is on hold until a future period. Fiduciary Fund The Fiduciary Fund Type is established for the purpose of accounting for assets held in trustee capacity or as an agent for individuals private organizations and other governments As of September 30 2002 the following is recorded as a Fiduciary Fund Pension Trust Fund The Village Council on October 1 1997 established a retirement plan for sworn police and firefighters in compliance with Part VII Chapter 112 Florida Statutes and Section 14 Article X of the State Constitution Each member is required to contribute 14% of his/her El U B 9 0 0 viii Honorable Mayor Village Council and Citizens Village of Key Biscayne salary until September 30 2001 This rate is adjusted each year thereafter based on the most recent actuarial valuation of the plan The current rate of contributions is 10 5% 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 2002 were $2 107 801 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 administrators 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 s financial statements but is included as a footnote disclosure The 401(a) fund had approximately $3 000 000 in investments as of September 30 2002 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 mdependent plan administrator permits employees to defer a portion of their salary until future years Employee investments in the Section 457 Plan as of September 30 2002 were approximately $1 000 000 In accordance with GASB Statement No 32 and because the Village does not have fiduciary responsibility over the assets of this Plan the Village does not report this Plan m their financial statements and no disclosure is required L., General Fixed Assets The General Fixed Assets of the Village are those assets used m the performance of general governmental functions In accordance with generally accepted accounting prmciples 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 dramage 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 fan market value at the date of receipt As of September 30 2002 the general fixed assets acquired amount to $48 698 189 Major additions for fiscal year 2002 were for land acquisitions public safety equipment and vehicles Debt Admimstration The Village of Key Biscayne has four outstanding obligations 1) a 10 year $9 200 000 Land Acquisition Revenue Bond Series 1993 which was issued on December 20 1993 at 4 36% from Northern Trust Bank to purchase the land for the Village Green The balance on September 30 2002 was $2 165 000 2) $7,200 000 m Stormwater Utility Bonds Series 1999 was issued January 26 1999 from Bank of America at 4 13% for 20 years The balance on September 30 2002 was $6 755 000 3) a $10 000 000 ix Q El Honorable Mayor Village Council and Citizens Village of Key Biscayne Laud Acqmsition and Capital Improvement Revenue Bond Series 1999 at 4 715% for 20 years to purchase land and construct a Village Civic Center building The bonds were issued through Bank of America 4) a $10 000 000 Land Acquisition and Capital Improvement Revenue Bond Series 2000 at 5 24% for 20 years to purchase land and construct a Village Civic Center Building The bonds were issued through Wachovia Bank. Cash Management The Village has several cash management vehicles and investment accounts or money market accounts in SunTrust and Northern Trust Banks under agreements which provided for overnight investments of both the investment accounts and the operating accounts to maximize earnings potential The Village also has an investment with the Local Government Surplus Funds Trust Fund adnunistered by the State Board of Administration which as of September 30 2002 had a balance of $3 451 154 Risk Management The Village is insured with the Coregis Florida Cities Program for liability and property coverage and with the Preferred Governmental Insurance Trust (PGIT) 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 2001 The Village has received this award each year since incorporation m 1992 The Government Fmance 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 beginning October 1 2001 This award has been received every year since 1992 In order to receive these awards a governmental unit must publish an easily readable and efficiently organized CAFR and budget document that meets program cntena as a policy document as an operations guide as a financial plan and as a communications device The awards are valid for a period of one year only We believe our current CAFR and budget continue to conform to program requirements and we have submitted them to the GFOA to determine their eligibility U C U U Honorable Mayor Village Council and Citizens Village of Key Biscayne Acknowledgments The preparation of this report could not have been accomplished without the efficient and dedicated services of the staff of the Village r 7 7 We express our appreciation to all members of the staff who assisted and contributed to the preparation of this report. A special note of thanks and appreciation is also extended to the firm of Rachim Cohen & Holtz LLP for their professional approach and high standards m conduct of their independent audit of the Village s financial records and transactions Respectfully submitted quehna%R. Menendez illage Manager X1 VILLAGE OF KEY BISCAYNE, FLORIDA VILLAGE OFFICIALS SEPTEMBER 30 2002 VILLAGE COUNCIL Joe I Rasco Mayor Robert Oldakowski Vice Mayor Scott Bass Martha Fdez Leon Broucek Alan H Fern Mortimer Fned James L Peters VILLAGE MANAGER Jacqueline R Menendez VILLAGE CLERK Conchita H Alvarez CMC VILLAGE ATTORNEY Weiss Serota Helfman Pastorrza & Guedes P A FINANCE DIRECTOR Severn Trent Services VILLAGE AUDITORS Rachlm Cohen & Holtz LLP Certified Public Accountants & Consultants X11 a 0 0 0 0 U cr U C C C 0 U C VILLAGE OF KEY BISCAYNE, FLORIDA rac 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, 2001 A Certificate of Achievement for Excellence in Financial Reporting is presented by the Government Finance Officers Association of the Unrted States and Canada to government units and public employee retirement systems whose comprehensive annual financial reports (CAFRs) achieve the highest standards in government accounting and financial reporting President Yr, OftVee Executive Director X111- a 4 v v 4 LAN ifU f 0 / / 1,/ l�'>l, �l ��d /r ' 1/ / r'rr 1 if �l lei /if '/ 1 /' '1'// d'0 '111,a14171/1111 1/ ( ✓/ 1 i 4 1,111✓�ill4,ll/✓�; 77 777 op l/ / i "!! pd ll/1//1/1,9',�✓�l 1161//!✓lG 14Li6 /1 9 9fi R lAO 47 a 1 8e 77 /! / / 1, 9/ /7 it i 1/91 / Ol/ tor%/ //1//T7///1/fl////,/11�U/D 47 /////gal//f/G 1l✓%0%/1/ /R/9//9// 01Ai \ 6i \ e r VILPU \\'$ %77 17 /i \ /77 1777a. vT,777 7777777 k 4 a L i k it p p L ,AA 5 t J L-.. . L 1 t FINANC IAL SE CT ION a e_ ' L r r a e E I r Rachlin Cohen & Holtz LLP Certified Public Accountants & Consultants REPORT OF INDEPENDENT CERTIN'IEI) PUBLIC ACCOUNTANTS Honorable Mayor Village Council and Village Manager 0- Village of Key Biscayne Florida We have audited the accompanying general purpose financial statements of the Village of Key Biscayne Florida (the Village) as of and for the year ended September 30 2002 as listed in the table of contents These general purpose financial statements are the responsibility of the Village s management Our responsibility is to express an opinion on these general purpose financial statements based on our audit We conducted our audit in accordance with 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 obtam reasonable assurance about whether the general purpose financial statements are free of material misstatement An audit mcludes examining on a test basis evidence supporting the amounts and disclosures in the general purpose financial statements An audit also includes assessing the accounting principles used and significant estimates made by management as well as evaluating the overall financial statement presentation We believe that our audit provides a reasonable basis for our opinion In our opinion, the general purpose financial statements referred to above present fairly in all material respects the financial position of the Village as of September 30 2002 and the results of its operations and the cash flows of its proprietary fund type for the year then ended m conformity with accounting principles generally accepted in the United States In accordance with Government Auchtzng Standards we have also issued a report dated January 10 2003 on our consideration of the Villages internal control over financial reporting and our tests of its compliance with certain provisions of laws regulations contracts and grants That report is an integral part of an audit performed m accordance with Government Auditing Standards and should be read m conjunction with this report in considering the results of our audit. Our audit was conducted for the purpose of forming an opmion 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 combming individual fund and account group statements and schedules as listed in the table of contents and the required supplementary information on page 26 are presented for purposes of additional analysis and are not a required part of the general purpose financial statements Such information has been subjected to the auditing procedures applied in the audit of the general purpose financial statements and in our opinion is fairly presented in all material respects m relation to the general purpose financial statements taken as a whole A. lows 1 One Southeast Third Avenue Tenth Floor Miami Flonda 33131 Tel 305 377 4778 Fax 305 377 8331 Offices in Miami Ft Lauderdale West Palm Beach Stuart wwwrchcpa coin Member ES mmtInternet nal As rotes Inc wth Hs manna's I h through tth Id Member f tb Amen an Insttut f Cerhfi d Pubh A uttants and memo f th SI d bnstttut f Cartrfl d Pubh A constants C C Honorable Mayor Village Council and Village Manager Village of Key Biscayne Florida Page Two The mformation shown in the statistical section listed in the table of contents has not been subjected to the auditing procedures applied in the audit of the general purpose financial statements and accordingly we express no opmion thereon /Alv t4eiv 064 1-1-P Miami, Florida January 10 2003 2 05.11 Asexl GENERAL PURPOSE FINANCIAL STATEMENTS (Combined Statements - Overview) t 41 ( l (7 ) J' a f I f P 1 1 ] t VILLAGE Or KE Y BISC AYNE FLORIDA COMBINED B ALANCE SHEET ALL FUND TYPES A ND ACCOU NT GROUPS SEPTEMBE R 30 2002 (WITH C OMP AR ATI VE TOTALS FOR SEPTE MBER 30 2001) Governmental Proprietary Fid uciary Accou nt Fund Types Fund Types Fu nd Type Gr oups Trust General General Totals Capital and Fixed Lo ng Term (Memora ndum Only) General Protects Entemnse Agency Assets Debt 2002 2601 ASSETS AND OTHER DEBITS Cash and cash equiv alents $ 2 724 623 $ 3 632 899 $ 419 809 $ $ $ $ 6 777 331 $ 20 812 183 Investm ents 1 112 261 1006 984 2 162 691 4 281 936 5 740 383 Due from other funds 44 731 873 527 20 312 938 570 1 501 819 Property taxes receivable 14 615 14 615 36 673 O ther receivables 499 864 934 077 275 514 45 110 1 754 565 754 506 Prepaid items 7 290 7 290 152 696 Capitalized loan fees and Interest 99 781 99 781 259 584 Fixed assets not 9 068 694 48 698 189 57 766 883 39 941 501 Xmounf to be pro vided for retirement of general lon g term debt 23,477 108 23 477 108 24 562,060 Total assets and other debits $ 4 403 384 $ 5 440 503 $ 10 891 094 $ 2 207 801 $ 48 698 189 $ 23 477 108 $ 95,118 079 $ 93 761 405 LIABILITIES, EQU ITY AND OTHER.CREDITS Liabilities Accounts payable and accrued liabilities Retamage payable Deposits and perfor mance bonds Due to other Rinds Rev olv in g lo an Rebatable arbitrage Co mpensated absences payable Revenue bonds payable To tal liabilities $ 427 364 $ 1 150 568 $ $ 100 000 $ $ $ 1 677 932 $ 1 123 664 222 596 222 596 139 244 1 410 20 312 873 527 44 731 938 570 1 501 819 770 466 770 466 887 983 179 962 25 000 1 312 108 1 337 108 1 263 379 6 625 000 22 165 000 28 790 000 30 120 000 472 676 2 246 691 7 440 197 100 000 23 477 108 33 736 672 35 217 461 Equity and other credits _Investment in general fixed assets 48 698 189 48 698 189 30 598 888 Contributed capital 2 682 901 2 682 901 2 682 901 $etguted earnings 767 996 767 996 824 587 Fond balance Reserved 3 308 447 3 193 812 2 107 801 8 610 060 23 492 106 Unreserved Designated 622 261 622 261 945 462 Total equity and other credits 3 930 708 3 193 812 3 450 897 2 107 801 48 698 189 61 381 407 58,543 944 Total liabilities equity and other credits $ 4 403 384 $ 5 440 503 $ 10 891,094 $ 2 207 801 $ 48 698 189 $ 23 477 108 $ 95 118 079 $ 93 761 405 See n otes to general purpose financial statements 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 2002 (WITH COMPARATIVE TOTALS FOR FISCAL YEARENDED SEPTEMBER 30 2001) Revenues Property taxes Utility taxes Franchise fees Intergovernmental Licenses and permits Charges for services Interest Grants Settlement Contributions 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 $ 9 569 030 $ 2,258 931 639 072 971 I36 859 435 336 134 89 838 196 919 21994 52,965 14 995 454 1 486 638 802,218 1 264 94'3 539 058 6 926 254 799 424 243 372 1 015 000 1 420 845 14 497 752 Excess (deficiency) of revenues over expenditures 497 702 Other financing sources (uses) Operating transfers in Operating transfers out Bond proceeds Total other financing sources (uses) Excess (deficiency) ofrevenues and other financing sources over expenditures and other financing uses Fund balances beginning Capital Projects Funds 258 566 1 195 956 65 000 Totals (MemorandumOnly) 2002 2001 $ 9 569 030 $ 8 738 608 2,258 931 1 772 208 639 072 783,513 971 136 930 169 859 435 1 308 229 336 134 440 136 348 404 1 342 973 1 392 875 811997 65400 21 994 52,965 18 400 1 519 522 16 514 976 16146,233 17803 124 1 486,638 802 218 1 264 943 539 038 6 926 254 799 424 18 046 496 1 270 062 933 096 1 235,529 452 804 6 172,932 630 657 5 302 908 1015 000 975 000 1 420 845 631875 17 803 124 32 300 876 17 604 863 (16 283 602) (15 785 900) (1 458 630) 3 000 000 (3 000 000) 3 000 000 (3 000 000) 1250,000 (1 250 000) W 000 000 10 000 000 497 702 (16 283 602) (15 785 900) 8 541370 3 433 006 19 477 414 22,910 420 14 369 050 Fund balances ending $ 3 930 708 $ 3 193 812 $ 7 124 520 $ 22 910 420 See notes to general purpose financial statements 4- a U U C 0 13 U U U 13 U C U U C C U VILLAGE OF KEY BISCAYNE FLORIDA STATEMENT OF REVENUES AND EXPENDITURES (BUDGETARY BASIS) BUDGET AND ACTUAL GENERAL FUND FISCAL YEAR ENDED SEPTEMBER 30 2002 rs r rwr Revenues Property taxes Utility taxes Franchise fees Intergovernmental Licenses and permits Charges for services Interest Grants Contributions Other Total revenues Expenditures Current General government Pubhc works Building zoning and planning Parks and recreation Public safety Non depaitinental Debt service Principal Interest Total expenditures Excess of revenues over expenditures Other financing sources (uses) Appropriation of pnor years fund balance expenditures of pnor year reserves Total other financing sources (uses) Excess of revenues and other financing sources over expenditures and other financing uses Budgetary Budget Actual $ 9 358 443 1 955 000 650 000 964 900 640 947 103 000 200 000 50 250 Vanance Favorable (Unfavorable) $ 9 569 030 $ 210 587 2 258 931 303 931 639 072 (10 928) 971 136 6 236 859 435 218 488 336 134 233 134 89 838 (110 162) 196 919 146 669 21 994 21 994 52 965 52 965 13 922 540 14 995 454 1 072 914 1 394 672 1 488 117 772 631 807 813 1 284 382 1 264 943 524 556 560 832 6 757 861 6 957 831 752 593 839 943 1 015 000 1 015 000 1 420 845 1 420 845 (93 445) (35 182) 19 439 (36 276) (199 970) (87 350) 13 922 540 14 355 324 (432 784) 640 130 640 130 (142 428) (142 428) (142428) (142428) $ $ 497 702 $ 497 702 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 YEARENDED SEPTEMBER 30 2002 (WITH COMPARATIVE TOTALS FOR FISCAL YEAR.ENDFD SEPTEMBER 30 2001) Operating revenue Operating expenses General and administrative costs Depreciation Total operating expenses 2002 2001 $ 815 474 $ 810 662 358 837 349 580 273 919 273 919 632 756 623 499 Operating income 182 718 187 163 Non operating revenue (expense) Interest income 42 061 89 852 Interest expense (281 370) (286 749) Total non operating expense (239 309) (196 897) Net loss (56 591) (9 734) Retained earnings beginning 824,587 834 321 Retained earnings ending $ 767 996 $ 824 587 See notes to general purpose financial statements -6 Q 0 Q U 0 II ci i C U l.r p U U C U VILLAGE OF KEY BISCAYNE FLORIDA COMBINED STATEMENT OF CASH FLOWS ENTERPRISE FUNDS FISCAL YEAR ENDED SEPTEMBER 30 2002 (WITH COMPARATIVE TOTALS FOR FISCAL YEAR ENDED SEPTEMBER 30 2001) 2002 2001 ca r —g Cash flows from operating activities Operating income Adjustments to reconcile operating income to net cash provided by operating activities Depreciation Changes in operating assets and liabilities (Increase) decrease in. Accounts receivable Interest receivable Increase (decrease) in Accounts payable and accrued expenses Due to other funds Total adjustments Net cash provided by operating activities Cash flows from capital and related financing activities Payments on revenue bonds Net proceeds (payments) from revolving loan Interest paid Net cash used by capital and related financing activities Cash flows from investing activities Purchase of investments Interest received Net cash used by investing activities Net decrease m cash and cash equivalents Cash and cash equivalents beginning Cash and cash equivalents ending $ 182 718 $ 187 163 273 919 273 919 (117 601) (36 291) 159802 (72441) (72 898) 68 710 24 419 (33 488) 267 641 200 409 450 359 387 572 (315 000) (117 517) (281 370) 22 165 (286 749) (713 887) (264 584) (74 754) (932,230) 42 061 89 852 (32 693) (842 378) (296 221) (719 390) 716 030 1 435 420 $ 419 809 $ 716 030 See notes to general purpose financial statements 7 VILLAGE OF KEY BISCAYNE, FLORIDA PENSION TRUST FUND STATEMENT OF CHANGES IN PLAN NET ASSETS FISCAL YEAR ENDED SEPTEMBER30 2002 (WITH COMPARATIVE TOTALS FOR FISCAL YEAR ENDED SEPTEMBER 30 2001) 2002 2001 ADDITIONS Contributions Plan members and Village $ 708 897 $ 379 240 State 173 755 230 370 Total contributions 882 652 609 610 Investment losses Total additions (221 616) (378 408) 661036 231202 DEDUCTIONS Distributions 51 672 110 607 Administrative expenses 28 711 27,226 Total deductions 80383 137 833 Net increase 580 653 93 369 Net assets held in trust for pension benefits Beginning of year 1 527 148 1 433 779 End of year $ 2,107 801 $ 1 527 148 See notes to general purpose financial statements -8 U 2 B I1 a U i U U C U U 2 C L r r - x L. >r 7 NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS VILLAGE OF KEY BISCAYNE, FLORIDA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS FISCAL YEAR ENDED SEPTEMBER 30 2002 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Village of Key Biscayne Florida (the Village) located m Miami Dade County is a political subdivision of the State of Honda The Village which was incorporated in 1991 operates under a Council Manager form of government In addition to the general government function the Village provides its residents with public works public safety (police and fire) parks and recreation building zoning and planning functions sanitation and stormwater management The Village does not provide educational or hospital facilities those services are provided by the Miami Dade County School Board and Miami Dade County respectively The accounting policies of the Village conform to 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 establishing governmental accounting and financial reporting principles r The more significant of the Village s accounting policies are described below to assist the reader in interpreting the general purpose financial statements and other data in this report These policies are considered essential and should be read in conjunction with the accompanying general purpose financial statements 1 Financial Reporting Entity The financial statements were prepared in accordance with GASB Statement No 14 The Financial Reporting Entity which estabhshes standards for defining and reporting on the 'r'` financial reportmg entity The definition of the financial reporting entity is based upon the concept that e'ected officials are accountable to their constituents for their actions One of the objectives of financial reporting is to provide users of financial statements with a basis for assessing the accountability of the elected officials The financial reporting entity consists of the Village organizations for which the Village is financially accountable and other organizations for which the nature and significance of their relationship with the Village are such that exclusion would cause the reporting entity s financial statements to be misleading or incomplete The Village is financially accountable for a component unit if it appoints a voting majority of the organization s governing board and it is able to impose its will on that organization or there is a potential for the organization to provide specific financial benefits to or impose specific financial burdens on the Village Based upon the application of these criteria, there were no organizations that met the criteria described above 2 Measurement Focus Basis of Accounting and Basis of Presentation n The accounts of the Village are organized and operated on the basis of funds and account groups A fund is an independent fiscal and accounting entity with a self balancing set of accounts Fund accounting segregates funds according to their mtended purpose and is used to aid management in demonstrating compliance with finance -related legal and contractual provisions The minimum number of funds is maintained consistent with legal and managenal requirements Account groups area reportingdevice,to account for certain assets and liabilities of the governmental funds not recorded directly m those funds r 9 VILLAGE OF KEY BISCAYNE FLORIDA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS (Continued) NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 2 Measurement Focus Basis of Accounting and Basis of Presentation (Continued) 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 within the current period or soon enough thereafter to 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 for unmatured principal and interest on general long-term debt which is recognized when due and certain compensated absences which are recognized when the obligations 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 fund is the Village s primary operating fund. It accounts for all financial resources of the Village except those required to be accounted for in another fund Resources are derived pnnianly from property and utility taxes and intergovernmental revenues Expenditures are incurred to provide general government public safety public works building zoning and planning and recreation services The capital projects funds account for the acquisition or construction of major capital projects not bemg financed by proprietary funds The Village has two capital projects funds the capital improvement fund and the civic center fund Proprietary Fund Type Proprretaiyfunds are accounted for on the flow of economic resources measurement focus and use the accrual basis of accounting Under this method revenues are recorded when earned and expenses are recorded at the time liabilities are incurred The Village applies all apphcable Financial Accounting Standards Board (FASB) 10 Q 0 0 Q II Q UI U C U C i U B U 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 (Contmued) 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 reporting for its proprietary operations The proprietary fund includes the following fund type y r The enterprise funds are used to account for those operations that are financed and operated in a manner similar to a private business or where the Council has decided that the determination of revenues earned costs incurred (including depreciation) and/or net income is necessary for management accountability The Village has three enterprise funds a stormwater utility fund a solid waste fund and a sanitary sewer construction fund Fiduciary Fund Type The fiduciary fund accounts for assets held by the Village in a trustee capacity or as an agent on behalf of others Fiduciary funds include the following fund type Trust funds are accounted for in a manner similar to propnetary fund types (economic resources measurement focus and the 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 funds 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 m the period m 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 plan Account Groups The general fixed assets account group is used to account for fixed assets not accounted for m proprietary funds The general long-term debt account group is used to account for general long term obligations including compensated absences that are not specific liabilities of the proprietary funds 3 Budgets and Budgetary Accounting An annual appropriated 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 (Continued) 3 Budgets and Budgetary Accounting (Continued) The Village follows these procedures in establishmg 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 obtam 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 2002 there were no supplemental appropriations (e) Formal budgetary integration is employed as a management control device for the general fund (0 The budget for the general fund is adopted on a basis consistent with generally accepted accounting principles (GAAP) except for certain unbudgeted expenditures of prior year reserves (g) The Village Manager is authorized to transfer part or all of an encumbered appropriation balance within departments within a fund however, any revisions that alter the total appropnations 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 2002 expenditures exceeded appropriations in general government activities by $93 445 m public works by $35 182 in parks and recreation by $36 276 and in public safety by $199 970 and in non departmental by $87 350 as presented in the Statement of Revenues and Expenditures — Budget and Actual— General Fund It is the policy of the Village that all related revenues generated by each department be applied to that department in determining if any department exceeds its appropriations in total In applying all related revenues to each department for fiscal year 2002 it was determined that no department resulted in a deficit situation. (h) Encumbrance accounting is not employed in the general fund Unencumbered appropriations lapse at year end Encumbered amounts are not reappropnated in the following year s budget (i) Budget amendments were not significant in relation to the original appropriations 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 12 2 Q ci U U 11 5 a U U U U VILLAGE OF KEY BISCAYNE FLORIDA 1 Ili f L 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 m those instruments authorized by the Florida Statutes Investments which consist of funds held with the State Board of Administration Investment Pool are reported at its fair value of its position in the pool which is the same as the value of the pool shares All other investments are reported at fair value based on quoted market pnces 5 Fixed Assets Fixed assets used in governmental fund type operations are accounted for in the general fixed assets account group rather than in the governmental funds General fixed assets purchased are initially reported as expenditures in the general and capital projects funds and are capitalized at histoncal cost or estimated cost if actual historical cost is not available m the general fixed assets account group except for certain mfrastructure assets which mclude 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 lives which range between 20 and 45 years 6 Interfund Receivables/Payables Transactions between funds that are representative of lending/borrowing arrangements at the end of the fiscal year are reported as due to/from other funds 7 Compensated Absences It is the Villages 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 m 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 in the general long term debt account group 8 Long -Term Obligations The Village reports long term debt of governmental funds in the general long term debt account group Certain other governmental fund obligations not expected to be financed with current available financial resources are also reported in the general long-term debt account group Long term debt and other obligations financed by propnefary funds'are reported as liabilities of those,funds 13 T VILLAGE OF KEY BISCAYNE, FLORIDA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS (Continued) NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICil S (Continued) 9 Reserves and Designations Fund balances are reserved to indicate that a portion of fund equity is not available for appropriation or are legally segregated for a specific future use The description of each reserve indicates the purpose for which each was intended Designated fiord 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 =designated fund balance is the portion of fund equity available for any lawful use 10 Use of Estimates The preparation of financial statements in conformity with accounting prmciples generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in 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 in selected sections of the accompanying financial statements in order to provide an understanding of changes in Villages financial position and operations Certain amounts presented in the prior year data have been reclassified to be consistent with current year s presentation 12 Memorandum Only - Total Columns Total columns on the combined statements which are captioned memorandum only aggregate the columnar amounts presented by find type and account group and are presented only to facilitate fmancial analysis Data in these columns do not present financial position or results of operations in conformity with accounting principles 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 in banking institutions approved by the State Treasurer of the State of Florida to hold public funds Under Florida Statutes Chapter 280 Florida Security for Public a II II El a 11 11 C U U C U 14- VILLAGE OF KEY BISCAYNE,FLORIDA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS (Continued) NOTE 2 DEPOSITS AND INVESTMENTS (Continued) Deposits (Continued) Deposits Act the State Treasurer requires all Florida qualified public depositories to deposit with the Treasurer or another banking institution eligible collateral In the event of a failure of a qualified public depository the remaining public depositories would be responsible for covering any resulting losses Accordingly all amounts reported as deposits are insured or collateralized with securities held by the entity or its agent in the entity s name Investments r r L 7 The Village is authorized to invest in obligations of the US Treasury its agencies instrumentalities and the Local Government Surplus Funds Trust Fund administered by the State Board of Administration The investments follow the investment rules defined in Florida Statutes Chapter 215 The investment policy defined in the statutes attempts to promote through state assistance the maximization of net interest earnings on invested surplus fluids of local units of governments while hmiting the risk to which the funds are exposed The Local Government Surplus Funds Trust Fund is governed by Ch 19 7 of the Florida Administrative Code which identifies the Rules of the State Board of Administration These rules provide guidance and establish the general operating procedures for the administration of the Local Government Surplus Funds Trust Fund Additionally the Office of the Auditor General performs the operational audit of the activities and investments of the State Board of Administration. The Local Government Surplus Funds Trust Fund 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 2002 the Villages investment balances which are carried at fair value were classified as credit risk category 1 insured or registered, or securities held by the entity or its agent in the entity s name were as follows Category 1 Repurchase agreements $1 553 378 Bonds 594 542 Common stocks 850 379 I Government securities 302 066 L 3 300 365 Investments not subject to categorization Mutual finds 415 705 State Board of Administration investment pool 3 451 154 $7 167 224 15 VILLAGE OF KEY BISCAYNE, FLORIDA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS (Continued) NOTE 2 DEPOSITS AND INVESTMENTS (Continued) Investments (Continued) A reconciliation of cash and mvestments as shown on the combined balance sheet is as follows Carrying amount of deposits Carrying Amount of investments Cash and cash equivalents Investments NOTE 3 PROPERTY TAXES $ 3 892 043 7,167 224 $11,059,267 $ 6 777 331 4,281,936 $11,059 267 Property values are assessed on a county wide basis by the Miami Dade County Property Appraiser as of January 1 the hen date of each year and are due the following November 1 Taxable value of property within the Village is certified by the Property Appraiser and the Village levies a tax nnllage 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 1 unpaid amounts become delinquent with interest and penalties added thereafter Begmnmg 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 2002 there were no matenal delinquent taxes U h tff U U p U U E 16- VILLAGE OF KEY BISCAYNE FLORIDA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS (Continued) NOTE 4 FIXED ASSETS The following is a summary of changes in general fixed assets Balance Balance September 30 September 30 2001 Additions Transfers 2002 Land $ 16 571 873 $ 5 261 963 $ $ 21 833 836 Buildings 802 290 12 377 814 667 Improvements other than buildmgs 7 186 103 2 465 011 1 343 262 10 994 376 Equipment 2 306 470 413 603 2 720 073 Furniture and fixtures 44 975 23 475 68 450 Construction m progress 3 687 177 9 922 872 (1 343 262) 12 266 787 Total $ 30 598 888 $18 099 301 $ $ 48 698 189 Depreciation is not required and has not been provided on general fixed assets ,r- The following is a summary of proprietary fund type fixed assets L r L 7 L. Stormwater utility system Construction in progress Less accumulated depreciation Total Balance Balance September 30 September 30 2001 Additions Deletions 2002 $ 10 056 660 $ $ $ 10 056 660 373 249 373 249 10 429 909 10 429 909 (1 087 295) (273 919) (1 361 214) $ 9 342 614 $ (273 919) $ $ 9 068 695 NOTE 5 INTERFUND RECEIVABLES AND PAYABLES Receivable Fund Payable Fund Amount Civic Center Capital Improvements $ 873 527 General Stormwater Utility 44 731 Sohd Waste General 20 312 $ 938 570 -17 VILLAGE OF KEY BISCAYNE, FLORIDA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS (Conunued) NOTE 6 LONG-TERM DEBT The following is a summary of changes in general long-term debt account group Revenue bonds payable Compensated absences payable Rebatable arbitrage Revenue Bonds Balance Balance September 30 September 30 2001 Additions Payments 2002 $ 23 180 000 $ $1 015 000 $ 22 165 000 1 202,098 110 010 1 312 108 179 962 27 507 207 469 $ 24,562 060 $ 137 517 $1222 469 $ 23 477 108 Land Acquisition Revenue Bonds During the fiscal year ended September 30 1994 the Village issued $9 200 000 Land Acquisition Revenue Bonds Series 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 principal and mterest on the bonds The bonds are due m annual principal installments Interest accrues at 4 36% per annum Debt service requirements to maturity are as follows Principal Interest Total Fiscal year ending September 30 2003 $1 060 000 $ 71 286 $1 131,286 2004 1 105 000 24 089 1 129 089 $2 165 000 $ 95 375 $2260375 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 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 m annual principal installments ranging from $355 000 m fiscal year 2003 to $815 000 in fiscal year 2020 Interest accrues at 4 715% per annum an U II El U U U 0 U I U 18 VILLAGE OF KEY BISCAYNE, FLORIDA NOTES TO GENERAL PURPOSE FIWANCIAL STATEMENTS (Contmued) NOTE 6 LONG-TERM DEBT (Continued) Revenue Bonds (Continued) Land Acquisition and Capital Improvement Revenue Bonds (Contmued) Debt service requirements to maturity are as follows Principal Interest Total Fiscal year ending September 30 2003 $ 355 000 $ 463 131 $ 818 131 2004 375 000 445 921 820 921 2005 390000 427 886 817 886 2006 410 000 409 026 819 026 2007 430 000 389 223 819 223 2008 2012 2 505 000 1 611 469 4 116 469 2013 2017 3 205 000 941 704 4 146 704 2018 2020 2 330 000 168 326 2 498 326 $10 000 000 $4 856 686 $14 856 686 ii r E r L E 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 valoniu revenues to secure payment of the principal and interest on the bonds The bonds are due in annual principal installments ranging from $380 000 m fiscal year 2005 to $860 000 m 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 2003 $ - $ 524 000 $ 524 000 2004 524 000 524 000 2005 380 000 514 044 894 044 2006 400 000 493 608 893 608 2007 420 000 472 124 892 124 2008 2012 2 450 000 1 997 750 4 447 750 2013 2017 3 165 000 1,266 115 4 431 115 2018 2021 3 185 000 344 661 3 529 661 $10 000 000 $6 136 302 $16 136302 19 VILLAGE OF KEY BISCAYNE, FLORIDA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS (Continued) NOTE 6 LONG-TERM DEBT (Continued) Revenue Bonds (Continued) Stormwater TJtihty 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 interest on the bonds The bonds are due in annual principal installments on October 1' ranging from $195 000 in fiscal year 2004 to $595 000 in fiscal year 2020 The payment due on October 1 2003 of $185 000 was paid on September 30 200/ Interest accrues at 4 13% per annum. Debt service requirements to maturity are as follows Principal Interest Total Fiscal year ending September 30 2003 $ $ 281 253 $ 281 253 2004 195 000 273 613 468 613 2005 205 000 265 558 470 558 2006 215 000 257 093 472 093 2007 225 000 248,213 473 213 2008 2012 1 740000 1 066 366 2 806 366 20132017 2 340 000 651301 2 991 301 2018-2020 1 705 000 143 105 1 848 105 $ 6 625 000 $ 3 186 502 $ 9 811 502 Revolving Loan In June 1996 the Village entered into a loan agreement in the amount of $887 983 for the financing of the planning and engineering of the proposed sanitary sewer construction project under a State Revolving Fund Loan The proceeds were received in fiscal year 1998 The loan is payable in semi-annual payments over 20 years begriming on April 15 2003 at an interest rate of 2 56% per annum The loan matures on October 15 2022 Principal outstanding as of September 30 2002 is $770 466 In November 2002 the Village prepaid approximately $373 000 of its revolving loan with the State of Florida for its sanitary sewer construction project which brought the outstandmg balance to $437 548 prior to the first required payment on April 15 2003 20 U a U C U 0 Lat U C U U C C VILLAGE OF KEY BISCAYNE, FLORIDA NOI'ES TO GENERAL PURPOSE FINANCIAL STATEMENTS (Continued) NOTE 6 LONG-TERM DEBT (Continued) Revolving Loan (Continued) Principal Interest Total r pan r L Fiscal year ending September 30 2002 (prepayment) 2003 2004 2005 2006 2007 2008 2012 2013 2017 2018 2022 Subsequent Bond Issuance $ 332 918 7 780 17 242 17 686 18 142 18 609 100 488 114 118 143 483 $ 770 466 $ 40 082 6 288 10 892 10 448 9 993 9 525 40 182 26 553 11 253 $165 216 $ 373 000 14 068 28 134 28 134 28 135 28 134 140 670 140 671 154 736 $935 682 In November 2002 the Village issued Capital Improvement Revenue Bonds Series 2002 in the amount of $9 987 551 for the costs of constructing and equipping a community center NOTE 7 COMMITMENTS AND CONTINGENCIES Construction Commitments As of September 30 2002 the Village had outstanding construction commitments of approximately $1 800 000 to complete the civic center project Litigation The Village is involved in several lawsuits incidental to its operations the outcome of which in the opinion of management and legal counsel would not have a matenal adverse effect on the financial condition of the Village Risk Management The Village is exposed to various risks of loss related to torts theft of, damage to and destruction of assets errors and omissions and natural disasters for which the Village carries commercial insurance There was no reduction in insurance coverage from coverages in the prior year and there were no settlements that exceeded insurance coverage for each of the past three years E 21- VILLAGE OF KEY BISCAYNE, FLORIDA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS (Continued) NOTE 7 COMMITMENTS AND CONTINGENCIES (Continued) Grants Contingency Federal and State programs in which the Village participates were audited in accordance with the provision of regulatory requirements and grantor agencies Pursuant to those provisions certain programs were tested for compliance with applicable grant requirements While no matters of noncompliance were disclosed by the audit, government agencies may subject grant programs to additional compliance tests that may result in disallowed costs In the opinion of management future disallowances of grant expenditures if any would not have a material adverse effect on the financial condition of the Village NOTE S RESERVED/DESIGNATED FUND BALANCES As of September 30 2002 fund balances in the governmental funds have been reserved or designated for the following purposes - Reserved Fund Balances General fund Special disaster rehef $ 135 000 Law enforcement 462 540 Compensated absences 503 617 Emergencies 2 200 000 Prepaid items 7 290 $3 308 447 Capital project funds Capital projects $3 193 712 Pension Trust Fund. Employees pension benefits $1 527 148 Designated Fund Balances General fund Inspector fees Recreation center equipment Playing fields 22 $ 275 000 147 261 200 000 $ 622 261 U U U U El L 1 0 €U U C U {.i L U VILLAGE OF KEY BISCAYNE, FLORIDA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS (Continued) NOTE 9 SEGMENT INFORMATION FOR ENTERPRISE FUNDS The City mamtams three enterprise funds the purpose of which is to account for stormwater solid waste and sanitary sewer construction services Selected financial data for the individual funds are presented below Lerl Operating revenues Depreciation Operating mcome (loss) Interest expense Net income (loss) Net working capital Total assets Bonds payable/loans payable Total equity NOTE 10 DEFINED CONTRIBUTION PLANS Stormwater Solid Utility Waste Sanitary Sewer Construction Total $ 525 681 $ 289 793 $ $ 815 474 273 919 273 919 166 669 19 509 (3 460) 182 718 281 370 281 370 (81 144) 21 125 3 428 (56 591) 1 189 418 152 787 335 683 1 677 888 9 938 709 152 787 799 598 10 891 094 6 625 000 770 466 7 395 466 3 268 978 152 787 29 132 3 450 897 The Village as a smgle employer contributes to the Village of Key Biscayne Money Purchase Plans which are defined contribution plans created m accordance with Internal Revenue Code Section 401(a) Under one Plan, which is available to Village employees the Village contributes 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 Begimung 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 2002 were approximately $328 000 while the employee contributions were approximately $91 000 Amendments to the Plan must be authonzed by the Village Council NOTE 11 DEFINED BENEFIT PENSION PLAN Plan Deserzpuan Effective October 1 1997 the Village established a smgIe-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 m the Village s financial reports as a pension trust fund. The Plan was created under Village Ordinance 97-21 The latest available actuanal valuation is as of October 1 2001 The PERS does not.issue a separate audited financial report for the Plan 23 VILLAGE OF KEY BISCAYNE FLORIDA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS (Continued) NOTE 11 DEFINED BENEFIT PENSION PLAN (Continued) Plan Description (Continued) 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 3% (changed from 2% m the prior year) of the average final compensation for each year of service The calculation for the average final compensation is computed as one -twelfth of the average salary of the five highest years within the last ten years of credited service Credited service is determined by the total number of years employedby the Village smce August 1 1993 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 eammgs Benefits are recorded when paid At October 1 2001 (date of the latest actuarial valuation) Plan membership consisted of the following Retirees and beneficiaries currently receiving benefits and terminated employees entitled to benefits but not yet receiving them 4 Current employees Vested 40 Non vested 117 Total 57 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 185 of the Florida Statutes The participant contribution rate for the year ended September 20 2002 was 14 /o The minimum member contribution rate is 9% of base salary This funding policy is designed to limit the Village s exposure to contribute to the Plan 24 - II U Q U r L Q U r �.J C VILLAGE OF KEY BISCAYNE FLORIDA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS (Continued) NOTE 11 DEFINED BENEFIT PENSION PLAN (Continued) Annual Pension Cost and Net Pension Obligation The annual pension cost and net pension obligation as of October 1 2001 was as follows n E L r rs» 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 $ 377 777 (13 015) 16.829 381 591 429,027 (47 436) (144,611) $ 092 047) The annual required contribution for the current year was determined as part of the October 1 2001 actuarial valuation using the aggregate actuarial cost method This method does not identify and separately amortize unfunded actuarial liabilities When a plan uses the aggregate actuarial cost method a schedule of funding progress is not required to be presented. The actuarial assumptions included (a) 9% investment rate of return (net of investment related expenses) and (b) projected salary increases of 6% per year Both (a) and (b) included an inflation component of 4% The actuarial value of assets was determined using the difference between actual and expected return recognized over five years Tic id Information Fiscal Year Annual Pension Percentage of Net Pension Ended Cost (APC) APC Contributed Obligation 9/30/00 $ 4 485 0 0% $ (57 951) 9/30/01 46 934 284 6 (144611) 9/30/02 381 591 112 4 (192 047) 25 11411 Fes' = L.J C. ] co. C=2 ® C= t� 11 C r w hd 1 REQUIRED SUPPLEMENTARY INFORMATION VILLAGE OF KEY BISCAYNE, FLORIDA REQUIRED SUPPLEMENTARY INFORMATION PENSION TRUST FUND SCH HDULE OF EMPLOYER CONTRIBUTIONS OWorA Year Annual Ended Required Actual Percentage September 30, Contribution Contribution Contributed 1999 $ 1 497 $ 32 525 2 173% 2000 2 636 110 700 4 199% 2001 45 199 133 594 296% 2002 377 777 429 027 114% 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 actuarial valuation follows Since the Plan uses the aggregate actuanal cost method a schedule of fundmg progress is not required and has not been provided L.. C C C Valuation date 10/1/01 Actuarial cost method Aggregate actuarial cost method Amortization method N/A Remaining amortization period N/A Asset valuation method Market value Actuarial assumptions Investment rate of return* 9% per year compounded annually net of mvestment related expenses Projected salary increases* 6% Cost of living adjustments N/A *Includes inflation at 4% 26 ® ® aa Ca E C EL-) LJ (ZJ c,:a [2J Ga L ..J G.3 l f r i 7 I COMBINING, INDIVIDUAL FUND AND ACCOUNT GROUP STATEMENTS AND SCHEDULES 1 GENERAL FUND I bJy Lmiew The general fund is the pnncipal operating fund of the Village and is used to account for resources traditionally associated with governments which are not required to be accounted for m another fund. fM" VILLAGE OF KEY BISCAYNE FLORIDA GENERAL FUND COMPARATIVE BALANCE SHEETS SEPTEMBER 30 2002 (WITH COMPARATIVE TOTALS FOR SEPTEMBER 30 2001) 7 l r L_ r^ r L r' w ASSETS Cash and cash equivalents Investments Due from other funds Property taxes receivable Accounts receivable Prepaid Costs Total assets LIABILITIES ANI) FUND BALANCES Accounts payable and accrued liabilities Compensated absences Deposits and performance bonds Due to other funds Total liabilities Fund balances Reserved for Special disaster relief Law enforcement Compensated absences Prepaid items Emergencies Unreserved Designated for Playing fields Inspector fees Recreation center equipment Total fund balances 2002 2001 $ 2 724 623 $ 4 025 611 1 112 261 1 098 385 44 731 14 615 13 982 499 864 533 359 7 290 $ 4 403 384 $ 5 671 337 $ 427 364 $ 673 821 25 000 61 281 1 410 20 312 1 501 819 472 676 2 238 331 135 000 135 000 462 540 519 389 503 617 503 617 7,290 2 200 000 2 000 000 3 308 447 3 158 006 200 000 275 000 147 261 275 000 622 261 275 000 3 930 708 3 433 006 Total liabilities and fund balances $ 4 403 384 $ 5 671 337 27 VILLAGE OF KEY BISCAYNE, FLORIDA GENERAL FUND SCHEDULE OF REVENUES AND EXPENDITURES BUDGET AND ACTUAL Revenues Property taxes Utility taxes Franchise fees Intergovernmental Other Licenses and permits Occupational licenses Building permits Charges for services Interest Grants Contributions Other Total revenue FISCAL YEAR ENDED SEPTEMBER 30 2002 Budgetary Variance Basis Favorable Budget Actual (Unfavorable) $ 9 358 443 $ 9 569 030 $ 210 587 1 955 000 2 258 931 303 931 650 000 639 072 (10 928) 964 900 971 136 6 236 40 000 53 983 13 983 600 947 805 452 204 505 640 947 859 435 218 488 103 000 336 134 233 134 200 000 89 838 (110 162) 50 250 196 919 146 669 21 994 21 994 52 965 52 965 $ 13 922,540 $ 14 995 454 $ 1 072 9I4 (Continued) a a a ci U 2 a o U U C C U U c c c 28 VILLAGE OF KEY BISCAYNE FLORIDA GENERAL FUND SCHEDULE OF REVENUES AND EXPENDITURES BUDGET AND ACTUAL (Continued) FISCAL YEAR ENDED SEPTEMBER 30 2002 r f r L. Budgetary Vanance Basis Favorable Budget Actual (Unfavorable) Expenditures General government. Elected officials $ 74 955 $ 79 779 $ (4 824) Administration 768 162 811 213 (43 051) Village attorney 551 555 597 125 (45 570) Total general government 1 394 672 1 488 117 (93 445) Public works 772 631 807 813 (35 182) Bmldmg planning and zoning 1 284 382 1 264 943 19 439 Parks and recreation 524 556 560 832 (36 276) Pubhc safety 6 757 861 6 957 831 (199 970) Non departmental 752 593 839 943 (87 350) Debt service Principal 1 015 000 1 015 000 Interest 1 420 845 1 420 845 2 435 845 2 435 845 Total expenditures $ 13 922 540 $ 14 355 324 $ 432 784) 29 =3 f=3 CM 0 © 7 G C f J G f"m 7 r 4o C.= t: CAPITAL PROJECTS FUNDS r Capital Projects funds are used to account for the acquisition or construction of major capital projects not being financed by proprietary funds r L • Capital Improvement Fund - The capital improvement fund accounts for the acquisition or construction of various major capital projects • Civic Center Fund - The civic center fund was established to account for the construction of the Village Civic Center which will include administrative offices fire and police Cs" facilities and a Village Community Center -f VILLAGE OF KEY BISCAYNE FLORIDA CAPITAL PROJECTS FUNDS COMBINING BALANCE SHEETS SEPTEMBER 30 2002 (WITH COMPARATIVE TOTALS FOR SEPTEMBER 30 2001) Capital Civic Totals Irnprom ement Center 2002 2001 ASSETS Cash and cash equivalents $ 649 437 $ 2 983 462 $ 3 632 899 $ 16 070 542 Investments 2 197 725 Due from other funds 873 527 873 527 1 501 819 Receivables 934 077 934 077 70 820 Prepaid items 152 696 Total assets $ 1 583 514 $ 3 856 989 $ 5 440 503 $ 19 993 602 LIABILITIES AND FUND BALANCES Liabilities Accounts payable and accmed habihties $ 191 442 $ 959 126 $ 1 150 568 $ 376 944 Retamage payable 9 137 213 459 222,596 139 244 r•, Due to other funds 873 527 873 527 rt Total habilihes 1 074 106 1 172 585 2 246 691 516 188 R.. L E i Fund balance Reserved for Prepaid items 152 696 Beach improvements 99 860 Beach park and walk 672 738 Community center 30 100 Capital projects 509 408 2 684 404 3 193 812 17 851 558 509 408 2 684 404 3 193 812 18 806 952 Unreserved Designated for Pohce/fire equipment andbmldmg 40 000 Holiday colony lighting 100 000 Capital projects 271 462 Athletic fields 185 000 Sidewalk improvements 74 000 670 462 Total find balances Total habihties and fund balances $ 1 583,514 $ 3 856 989 $ 5 440 503 $ 19 993 602 509 408 2 684 404 3 193 812 19 477 414 30 VILLAGE OF KEY BISCAYNE FLORIDA CAPITAL PROJECTS FUNDS COMBINING STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES FISCAL YEAR ENDED SEPTEMBER 30 2002 (WITH COMPARATIVE TOTALS FOR FISCAL YEAR ENDED SEPTEMBER 30 2001) Revenues Interest Grants Settlement Total revenues Expenditures Capital outlay Total expenditures Deficiency of revenues over expenditures Other financing sources Operating transfers in Operating transfers out Bond proceeds Total other financing sources Excess (deficiency) of revenues and other financing sources over expenditures Fund balances begmnmg Residual egmty transfers Fund balances ending Capital Improvement $ 95 276 $ 1 195 956 Civic Center Totals 2002 2001 163 290 $ 258 566 $ 1 051 565 1 195 956 533 652 65 000 65 000 1 291 232 228 290 1 519 522 1 585 217 2 650 133 15 152 991 17 803 124 5 030 186 2 650 133 15 152 991 17 803 124 5 030 186 (1 358 901) (14 924 701) (16 283 602) (3 444 969) (3 000 000) 3 000 000 3 000 000 1 250 000 (3 000 000) (3 000 000) 3 000 000 10 000 000 11 250 000 (4 358 901) (I 1 924 701) (16 283 602) 7 805 031 4 868 309 14 609 105 19 477 414 10 199 223 1 473 160 509 408 $ 2 684 404 $ 3 193 812 $ 19 477 414 El El U C a 0 Q U U C C U C: C C 31 ENTERPRISE FUNDS Enterprise funds are used to account for operations that are financed and operated m a manner similar to private business enterprises where the intent is that the costs of providing goods or services be financed or recovered primarily through user charges a ft 4114 r f 41 �ry 41 rnk • Stormwater Utility System Fund The stormwater utility system accounts for the construction and maintenance of the stormwater system • Solid Waste Fund The sohd waste fund provides collection service for trash removal Solid waste expenses are primarily for curbside collections • Sanitary Sewer Construction Fund The sanitary sewer construction fund accounts for the development and construction of a sanitary sewer system to the unsewered areas of the community l f i r k k VILL AGE OF KEY BISC AYNE FL ORIDA ENTERPRISE FUN DS COMBINI NG BALANCE SHEETS SEPTEMB ER 30 2002 (WIT H COMP ARATIVE TOT ALS FO R SEPTEMBER 30 2001) Stormwater Utility Solid System Waste ASSETS Current assets Cash and cash equivalents $ 23 Investments 1 006 984 Due from other funds Accounts receivable net 227 142 Total current assets 1 234 149 Fixed assets net 8 695 445 Capitalized loan fees and interest 9 115 Total assets $ 9 938 709 LIABILITIES A ND FUND EQU ITY Curren t liabilities Accoun ts payable and accrued liabilities Due to other fun ds Curren t po rtion of revenue bonds payable Total current liabilities Sa nitary Sewer C onstructi on $ 84 103 $ 335 683 20 312 48 372 152 787 335 683 373 249 90 666 $ 152 787 $ 799 598 $ $ $ 44 731 44 731 Lon g term debt Revolving loan 770 466 Revenue bon ds payable 6,625 000 Total liabilities 6 669 731 770 466 7 440 197 7 900 882 Totals 2002 2001 $ 419 809 1 006 984 20 312 275 514 1 722 619 9 068 694 99 781 $ 716 030 932 230 157,913 1 806 173 9 342 613 259 584 $ 10 891 094 $ 11 408 370 $ $ 72 899 44 731 130 000 44 731 202 899 770 466 887 983 6 625 000 6 810 000 Fun d equity Contributed capital 2 682 901 Retained earnin gs 586,077 152 787 29 132 Total fund equ ity 3 268 978 152,787 29 132 Total liabilities and fun d equity $ 9 938,709 $ 152 787 $ 799 598 2 682 901 2 682 901 767 996 824 587 3 450 897 3 507 488 $ 10 891 094 $ 11 408 370 32 VILLAGE OF KEY BISCAYNE, FLORIDA ENTERPRISE FUNDS COMBINING STATEMENTS OF REVENUES EXPENSES AND CHANGES IN RETAINED EARNINGS FISCAL YEAR ENDED SEPTEMBER 30 2002 (WITH COMPARATIVE TOTALS FOR"FISCAL YEAR ENDED SEPTEMBER 30 2001) Operating revenue Stormwater Sanitary Utility Solid Sewer Totals System Waste Construction 2002 2001 $ 525 681 $ 289 793 $ $ 815 474 $ 810 662 Operating expenses General and administrative costs 85 093 270 284 3 460 358 837 349 580 Depreciation 273 919 273 919 273 919 Total operating expenses 359 012 270 284 3 460 632,756 623 499 Operating income (loss) 166 669 19 509 (3 460) 182 718 187 163 Non operating revenues (expense) Interest income 33 557 1 616 6 888 42 061 89 852 Interest expense (281 370) - (281,370) (286 749) Total non operating revenues (expenses) (247 813) 1 616 6 888 (239 309) (196 897) Net income (loss) Retained earnings begnniing Retained earnings ending (81 144) 21 125 3 428 (56 591) (9 734) 667 221 131 662 25 704 824 587 834 321 $ 586 077 $ 152 787 $ 29 132 $ 767 996 $ 824 587 33 I 0 a U U c Q U C c c U n U C C U E c 11 f E�7 f] f -b r 7 F► 1 '1 t 3 f -1 ! 1 1 s _l a VILL AGE OF KEY BISCAYNE, FL ORID A E NTERPRISE FUNDS COMBINING STATEMENTS OF CASH FL OWS FISCAL YEAR ENDED SEPTE MBER 30 2002 (WITH COMPARATIVE TOTALS FOR FISCAL YEAR E NDED SEPTEMBER 30 2001) Cash flows from operati ng activities Operating income (loss) A djustments to reconcile operating i ncome (loss) to net cash prov ided by operating activities Depreciation Change in operatin g assets a nd liabilities (Increase) decrease in Accounts receivable Interest receivable Increase (decrease) in A ccounts paya b)e and accrued ex penses Due to other funds Total adjustments N et cash prov ided by o peratin g activities Cash flows from capital and relating fmancmg activities Net proceeds from rev olving loan Principal pa yment fo r reve nue bon ds Interest paid Net cash used by capital and related financing activ ities Cash flows from inv esting activ ities Purchase of investments Interest received Net ca sh provided (used) by investing activities Net in crease (decrease) in cash and cash equ ivalents Cash and cash equ ivale nts beginn ing 308 685 Cash and cash e quiva lents endin g $ 23 34 Stormwater Sanitary Utility Solid Sewer Tot als System Waste Co nstruction 2002 2001 $ 166 669 $ 19 509 $ (3 460) $ 182 718 $ 187 163 273 919 (125 801) 8 200 42 285 273 919 273 919 (117601) (36291) 117517 159802 (72441) (72 898) (72 898) 68 710 44 731 (20 312) 24 419 (33 488) 162 236 (12 112) 117 517 267 641 200 409 328 905 7,397 114 057 450 359 387 572 (315 000) (281 370) (596 370) (117 517) (117 517) 22 165 (315 000) (281,370) (286 749) (117 517) (713,887) (264 584) (74 754) (74 754) (932 230) 33 557 1 616 6 888 42 061 89 852 (41 197) 1,616 6 888 (32 693) (842 378) (308 662) 9 013 3 428 (296 221) (719 390) 75 090 332 255 716 030 1 435 420 $ 84 103 $ 335 683 $ 419 809 $ 716 030 ® r :te a CO =3 r;:le CLJ r 4 1 GENERAL FIXED ASSETS ACCOUNT GROUP To account for fixed assets not accounted for m propnetary fund operations 7 r c L 7 v.. L r� VILLAGE OF KEY BISCAYNE FLORIDA SCHEDULE OF GENERAL FIXED ASSETS BY SOURCE SEPTEMBER 30 2002 (WITH COMPARATIVE TOTALS FOR SEPTEMBER 30 2001) General fixed assets Land Buildings Improvements other than buildings Equipment Furniture and fixtures Construction m progress Total general fixed assets Investment m general fixed assets by source General fund Capital project funds Donations 2002 2001 $ 21 833 836 $ 16 571 873 814 668 802 290 10 994 376 7 186 103 2 720 072 2 306 470 68 450 44 975 12 266 787 3 687 177 $ 48 698 189 $ 30 598 888 $ 22 425 884 $ 14 249 454 22 272 305 12 349 434 4 000 000 4 000 000 Total investment m general fixed assets $ 48 698 189 $ 30 598 888 -35 VILLAGE OF KEY B ISCAYNE FLORIDA SCHEDULE OF GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY SEPTEMBER30 2002 Improvements Other Furniture Than and Construction Land Building, Buildings EomDment Fixtures Progress Total General government $ 4000 000 $ 31 149 $ 9 359 038 $ 165 469 $ 46 975 $ 12 266 787 $ 25 869 418 Parks andrecreation 14,502,621 156 019 1 635 338 193 622 3 325 16 490 925 Public safety 3 331 215 627,500 2,360 982 18 150 6,337 847 $ 21 833 836 $ 814 668 $ 10 994376 $ 2 720 072 $ 68 450 $ 12,266 787 $ 48 698 189 36 i L ra- r r r� VILLAGE OF KEY BISCAYNE FLORIDA SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY FISCAL YEAR ENDED SEPTEMBER 30 2002 General government Parks and recreation Public safety Balance September 30 2001 Additions/ Transfers Balance September 30 Deletions 2002 $ 13 830 173 $ 12 039 245 $ 10 842 992 5 647 933 5 925 723 412 124 $ 25 869 418 16 490 925 6 337 847 $ 30 598 888 $ 18 099 301 $ $ 48 698 189 37 GAO =I f:UI GJ C=1 = C:;i1 Cal r r L r r t GENERAL LONG-TERM DEBT ACCOUNT GROUP To account for the Village s unmatured principal and long term portion of compensated absences a VILLAGE OF KEY BISCAYNE FLORIDA SCHEDULE OF GENERAL LONG TERM DEBT SEPTEMBER 30 2002 (WITH COMPARATIVE TOTALS FOR SEPTEMBER 30 2001) 2002 2001 Amount to be provided for retirement of general long term debt $ 23 477 108 $ 24 562 060 General long term debt payable Rebatable arbitrage $ $ 179 962 Compensated absences payable 1 312 108 1 202 098 Bonds payable 22 165 000 23 180 000 Total general long term debt payable $ 23 477 108 $ 24 562 060 7 E 4 — 38 1;1 tii ma E.,J C z STATISTICAL SECTION 1 E r e L IT VILLAGE OF KEY BISCAYNE FLORIDA GENERAL GOVERNMENTAL EXPENDITURES BY FUNCTION LAST TEN FISCAL YEARS Fiscal General Pubhc Parks and Pubhc Year Government Safety Recreation Works Total 1993 $ 2 848 857 $ 2 790 379 $ 240 794 $ 185 257 $ 6 065 287 0 woad 1994 4 126 094 4 453 539 9 601 922 (I) 782 001 18 963 556 1995 5 524 305 4 294 606 211 159 573 844 10 603 914 1996 3 124 384 4 634 385 234 b4 753 823 8 746 746 1997 3 577 170 5 017 882 239 029 660 780 9 494 861 1998 3 671 970 5 278 315 255 704 828 287 10 034 276 1999 4 173 995 5 644 903 293 664 730 521 10 843 083 2000 4 795 894 6 068 147 380 502 830 360 12 074 903 2001 5 015 845 6 172 932 452 804 933 096 12 574 677 2002 6 230 222 6 926 254 539 058 802 218 14 497 752 Note Includes general fund only (GAAP basis) Note General government includes economic development building, zoning and planning debt service capital outlay and non departmental expenditures (1) Includes acquisition of land for $9 238 317 for the Village Green 39 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 I993 $ 3 536 480 $ 1 458 733 $ 2 485 979 $ 1 212 084 $ 625 815 $ 169 429 $ 121 676 $ 9 610196 1994 6 640 045 629 246 997 501 1 268 428 668 020 115 664 288 978 10 607 882 1995 6 820 807 351 152 788 062 1 257 179 652 844 665 086 369,540 10 904 670 1996 6 486 019 430 208 791403 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 621473 740 031 1 295 001 231 820 12 377 635 2000 7 799 633 1 316 641 889 704 1 723 902 729 998 348,552 315 959 13 124 389 2001 8 738 608 1308 229 930 169 1 772 208 738 513 736 881 291408 14 516 016 2002 9 569 030 859 435 971 136 2 258 931 639 072 608 012 89 838 14 995 454 Note. Includes general fund wily (GAAP basis) (1) Includes charges for services grants contributions and other U 40 C VILLAGE OF KEY BISCAYNE FLORIDA UTILITY TAX REVENUE BY SOURCE LAST TEN FISCAL YEARS Fiscal Telecom Fuel Year Electricity mumcations Gas Oil Water Total 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 2002 1 097 566 904 475 (i) 53 360 318 203 612 2 259 331 FRANCHISE FEE REVENUE BY SOURCE LAST TEN FISCAL YEARS Fiscal Cable Year Electricity Television Telephone Total 9,14. 1993 $ 570 605 $ 39 821 $ lb 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 646000 59 548 24 450 729 998 2001 678 316 67 855 37 342 783 513 2002 639 072 p) 0p 639 072 (1) Simplified communications tax effective October 1 2001 replaced the utility tax and franchise fees on telecommunications and cable television 41 VILLAGE OF KEY BISCAYNE FLORIDA PROPERTY TAX LEVIES AND COLLECTIONS LAST TEN FISCAL YEARS Tax Fisral Assessed Tax Total Percent Yea» Year Value Levy Collected21 Collected 1993 1994 $ 1 560 057 130 $ 6 925 094 $ 6 640 045 95 9% 1994 1995 1 741 921 584 7 143 620 6 820 807 95 5% 1995 1996 1767 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 2,028174208 7 313 596 7 012 714 959% 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 97 0% 2001 2002 2 731 833 645 9 850 992 9 515 138 96 6% (1) Assessments as of January 1 of the year listed bills mailed in October of that year taxes become delinquent at the end of Apnl 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 U U ci O 0 C 0 -42 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 1993 $ 1 543 711 468 $ 16 345 662 $ 1 560 057 130 C 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 2002 3 227 971 184 31 948 797 3 259 919 981 Source Miami Dade County Property Appraisers Office Note Assessed values equal the estimated actual value. -43 VILLAGE OF KEY BISCA YNE FLORID A P ROPERTY T AX RATES DIRECT A ND OVERL APPING GOVER NMENTS LAST TEN FISCAL YEARS Village of K ey Biscayne Miami Dade County State School Distract Debt Total Total Debt Total Fiscal Village Operating Service Cou nty SFWMD FI ND St ate Operating Ser vice School Year Millage Miliane Millage Millage Millage Millage Millage Millage Millage Millage Other Total 1993 4 439 7 305 0 830 8 135 0 597 0 052 0 649 9 283 0 640 9 923 1 1010) 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 2002 3 606 5 889 0 390 6 279 0 697 0 039 0 736 8 482 0 770 9 252 0 451 20 324 (1) Village established its own fire district effectiv e October 1 1993 Source Miami Dade Cou nty Property Appraisers Office 44 C73Ci s = © ® © L.] C-3 Cll.] VILLAGE OF KEY BISCAYNE FLORIDA RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR NET BONDED DEBT TO GENERAL GOVERNMENTAL EXPENDITURES LAST TEN FISCAL YEARS r r L. r Ratio of Debt Total Service to Total General General Fiscal Debt Governmental Governmental Year Principal Interest (1) Service (2) Expenditures Expenditures 1995 $ $ 194 989 $ 194 989 $ 19 053 562 01 0% 1995 755 000 384 661 1 139 661 10 603 914 1996 785 000 351 089 1 136 089 8 746 746 1997 820 000 315 901 1 135 901 9 494 861 1998 855 000 277 825 1 132 825 10 034 276 1999 895 000 241 329 1 136 329 10 843 083 2000 935 000 595 767 1 530 767 12 074 903 2001 975 000 631 875 1 606 875 12 574 677 2002 1 015 000 1 420 845 2 435 845 14 497 752 Note Includes general fund only No debt prior to 1994 (1) Excludes bond issuance and other costs (2) Debt service on revenue bonds 10 7% 13 0% 12 0% 11 3% 10 5% 12 7% 12 8% 16 8% 45- Jurisdiction VILLAGE OF KEY BISCAYNE, FLORIDA SCHEDULE OF DIRECT AND OVERLAPPING BONDED DFBT GENERAL OBLIGATION BONDS (IN THOUSANDS) SEPTEMBER30 2002 Net General Percentage Amount Obligation Applicable Applicable Taxable Bonded to to Property Debt Key Key Value (1) Outstanding Biscayne Biscayne Direct Village of Key Biscayne $ 3 259 920 $ 29 935 100 00% $ 29 935 Overlapping_ Miami Dade County Miami Dade County Schools 115 792 742 270 986 (2) 116 749 284 781 952 (2) $ 1052,938 2 82% (3) 7 642 2 79% (3) 21 816 $ 29 458 (1) Source Miami Dade County Property Appraisers Office Taxable Property Value reflects January 1 2002 amounts (2) Source Miami Dade County Finance Department Net General Obligation Bonded Debt outstanding figures are as of September 30 2002 (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 46 U 0 0 0 0 0 0 El ur Ii I F C C U 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 r 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 1 104 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 21% 2 823 2002 10 698 (8) 2 731 833 645 29 935 000 1 10% 2 798 Note Village had no debt prior to 1994 (1) Net bonded assessed actual value of taxable property Lv (2) Net bonded debt represents revenue bonds (3) As of April 1997 University of Flonda Economic and Business Research (4) As of April 1998 Umversity of Florida Economic and Business Research (5) As of July 1999 University of Honda Economic and Business Research (6) Bureau of Census 2000 Census Data (7) As of April 2001 University of Flonda Economic and Business Research (8) As of April 2002 University of Florida Economic and Busmess Research 47 VILLAGF OF KEY BISCAYNE FLORIDA REVENUE BOND COVERAGE STORMWATER REVENUE BONDS (SERIES 1999) LAST TEN FISCAL YEARS Net Revenue Gross Available Stormwater for Debt Service Requirements Fiscal Fee Operating Debt Year Revenue Expenses Service Enna -pal Interest Total Coverage 1999 $ 480 586 $ 42 773 $ 437 813 $ $ 335 412 $ 335 412 130 53% 2000 494 955 33 453 461 502 135 000 281 875 416 875 110 71% 2001 518 961 79 708 439 253 125 000 291 622 416 622 105 43% 2002 559,239 85 091 474 148 130 000 336 253 466 253 101 69% O ci 0 o U 11 U C U 48 i -1 r (` 1 POPULATIO N Estimates of Populatio n by Age Year 2000 Estimates of Population by Race 2000 INCOME* Per Capita Income 2000 UNEMPLOYMENT RATES (Percent) Miami Dade County* Village of Key Biscayn e t_w1 r "t t 1 1 1 $ VILLAGE OF KEY BISCA YNE FL ORID A DFMOGRAPHICS ST ATISTICS * Source U S Bureau of Labor Statistics 1 Under 20 Years 20 to 64 Years 65 Years or Older Number Percent N umber Perce nt N umber Percent T otal 2 697 26 6 176 59 1 634 15 10 507 Angl o Black Hispa nic Tot al 5 228 48 5 231 10 507 Anglo Black Hispanic $ 62 542 $ 13 417 $ 46 682 Average Per Capita $ 54 612 I 1994 1995 1996 1997 1998 1999 2000 2001 2002 79 68 78 71 67 59 56 57 74 36 31 36 33 31 27 26 28 32 49 VILLAGE OF KEY B IS CAYNE, FLORIDA PROPERTY VALUE, CONSTRUCTION AND BANK DEPOSITS LAST TEN FISCAL YEARS Residential Total Fiscal Pciu its # of Year Issued Permits Valuation 1993 1 737 1633 $ 26 822 424 1994 2 205 2 081 25 410 312 1995 2 857 2 568 33 820 503 1996 3 171 3 060 65 318 655 1997 3 570 3 402 82 481 700 1998 3 002 2 879 129 200 900 1999 2000 2001 2002 Commercial (0005 Omitted) # of Permits Valuation Total of Construction County Bank Deposits (1) Village Bank Deposits (2) 104 $ 4 383 673 $ 31 206 097 $ 18 146 647 $ 124 45 567 390 70 977 702 289 2 099 661 35 920 164 111 1 231 097 66 549 752 168 667 328 83 149 028 106 3 176 031 132 376 931 2 711 2 416 94 287 095 295 56 792 994 151 080 089 1 793 1 641 85 244 371 152 9 359 770 94 604 141 749 667 59 607 528 82 10 485 477 70 093 005 45 064 000 856 769 23 206 296 87 1 101 721 24 308 017 51 297 000 17 524 140 17 938 762 14 561 654 34 664 829 36 659 805 39 633 149 38 539 107 (1) State of Florida Division of Banking as of June 30 of each respective year Information is for Miami Dade County which the Village of Key Biscayne is apart of Information is not available for the Village of Key Biscayne alone (2) Deposits withm Village of Key Biscayne limits Information for all years presented was not available 347 178 377 060 364 973 328 602 311 837 0 I U r L U 50 VILLAGE OF KEY BISCAYNE FLORIDA PRINCIPAL TAXPAYERS SEPTEMBER 30 2002 % of Total Taxable Assessed Taxpayer Valuation Valuation Sonesta Beach Resort, LP Key Biscayne Ocean Club Ltd $ 33 570 000 1 23% GB Hotel Partners Ltd 31 765 354 1 16% Pitu, Inc 27 144 582 0 99% Gallen of Key Biscayne Inc 9 188 029 0 34% Carlos M De La Cruz 7 978 440 0 29% OceanClub Community Assoication 7 327 008 0 27% Grand Bay Tower Associates 6 600 000 0 24% Phillip Gevas 5 825 760 0 21% Yoyot Realty 5 825 635 0 21% 5 518 156 0 20% $ 140 742 964 5 14% L rWm Source Miami Dade County Appraiser s Office 51 VILLAGE OF KEY BISCAYNE, FLORIDA MISCELLANEOUS STATISTICAL DATA SEPTEMBER 30 2002 Date of Incorporation 1991 Form of Government Council -Manager Area 1 25 Square Mileq Miles of Street 22 4 Lmear Miles Fire Protection Number of Stations 1 Police Protection Number of Stations Education Attendance Centers 2 Number of Students 1 504 Number of Teachers 90 Miami -Dade County Water & Sewer Authority Number of Customers Average Daily Consumption 1 977 31 669 gallons Sewers Number of Customers 931 Fire Hydrants 249 Buildmg Permits Issued 856 Recreation and Culture Number of Parks Number of Libraries Number of Tennis Centers Number of Recreational Centers Employees Full Time 3 1 (Operated by Miami Dade County) 1 1 92 0 Q U U U U C C1 52- c COMPLIANCE SECTION L T Rachlm Cohen & Holtz LLP Certified Public Accountants &z Consultants Report of Independent Certified Public Accountants on Compliance and on Internal Control over Financial Reporting Based on an Audit of Financial Statements Performed in Accordance with GOvernmentAudltnza Standards Honorable Mayor Village Council and Village Manager Village of Key Biscayne Flonda We have audited the general purpose financial statements of the Village of Key Biscayne Flonda (the Village) as of September 30 2002 and for the year then ended and have issued our report dated January 10 2003 We conducted our audit in accordance with auditing standards generally accepted m the United 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 material misstatement we performed tests of its compliance with certain provisions of laws regulations contracts and grants non compliance with which could have a direct and matenal effect on the determination of financial statement amounts However providing an opinion on compliance with those provisions was not an objective of our audit and 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 planning and performing our audit we considered the Village s internal control over financial reporting in order to determine our auditmg procedures for the purpose of expressing our opinion on the general purpose financial statements and not to provide assurance on the mternal control over financial reporting Our consideration of the intuual control over financial reporting would not necessarily disclose all matters in the internal control over financial reporting that might be material weaknesses A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements m amounts that would be matenal rn relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions We noted no matters mvolvmg the internal control over financial reporting and its operation that we consider to be material weaknesses 53 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 www rchcpacom Member fSummatInternan IAssociates In wth ff mpnnap lab through tth to Id Member fill Amer an Instant fCerhfi dPubh Ace untant and member fit iio d institute fCertified P bit As ante is Honorable Mayor Village Council and Village Manager Village of Key Biscayne Florida Page Two However we noted other matters that we have reported to management m the schedule of findings accompanying this report r L G f r r r 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 av / Si LL/J Miami Florida January I0 2003 54 L- -Th i Rachhn Cohen & Holtz LLP Certified Public Accountants & Consultants Management Letter in Accordance with the Rules of the Auditor General of the State of Flonda Honorable Mayor Village Council and Village Manager Village of Key Biscayne Florida We have audited the general purpose financial statements of the Village of Key Biscayne Florida (the Village) as of and for the year ended September 30 2002 and have issued our report thereon dated January 10 2003 We conducted our audit in accordance with auditing standards generally accepted in the United States and the standards applicable to financial audits contained m 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 Reportmg and our Report of Independent Certified Public Accountants on Compliance and on Internal Control over Compliance Applicable to a Major State Financial Assistance Project and Schedule of Findings and Questioned Costs Disclosures in those reports which are dated January 10 2003 should be considered in conjunction with this management letter In connection with our audit of general purpose fmancial statements of the Village for the year ended September 30 2002 we report the following in accordance with Chapter 10 550 Rules of the Auditor General Local Government Entity Audits which requires that this report specifically address but not be limited to the matters outlined in Rule 10 554(1)(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 There were no recommendations made m the preceding annual financial audit 3 The Village during fiscal year 2002 was not in a state of financial emergency as defined by Florida Statutes 218 5030) 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 findmgs 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 55 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 Stua t wwwrchcpa coin Memb fSmmmt Intern ton IA to Ine thofie esmpnn pal hesthr gh the Id Member fth Amer an Institute f Certified P bl A untants and memo f the FI d In btu' f Cerhh d Pubh A countant Honorable Mayor Village Council and Village Manager Village of Key Biscayne Florida Page Two b Made any illegal or improper expenditures c Had improper or inadequate accounting procedures other than those noted in the schedule of fmdings 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 2002 has been filed with the Department of Banking and Finance pursuant to Section 218 32(1)(a) Florida Statutes and is in agreement with the annual audited financial audit report for the fiscal year ended September 30 2002 r 1 Lig WI r r l s L 8 The Village was incorporated 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 momtor 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 detenorating financial conditions This report is mtended solely for the information and use of the Mayor Village Council management and the Auditor General of the State of Flonda and is not intended to be and should not be used by anyone other than these specified parties However this report is a matter of public record and its distribution is not limited Miami Florida January 10 2003 emenif 4244 GAP 56 Inn L r r Fr Rachhn Cohen & Holtz LLr Certified Public Accountants & Consultants Report of Independent Certified Public Accountants on Compliance and Internal Control Over Compliance Apphcable to a Major State Financial Assistance Protect Honorable Mayor Village Council and Village Manager Village of Key Biscayne Flonda We have audited the compliance of the Village of Key Biscayne Florida (the Village) with the types of compliance requirements descnbed in the Executive Office of the Governor s State Projects Compliance Supplement that are applicable to its major state financial assistance project for the year ended September 30 2002 The Village s major state financial assistance project is 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 its major state financial assistance project 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 m accordance with auditing standards generally accepted m the United States the standards apphcable 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 matenal 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 m 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 in all material respects with the requirements referred to above that r' are applicable to its major state financial assistance project for the year ended September 30 2002 r^ Internal Control Over Complance The management of the Village is responsible for establishing and maintammg effective internal control over comphance with requirements of laws regulations contracts and grants applicable to state financial assistance projects In plannmg and performing our audit we considered the Village s internal control over comphance with requirements that could have a direct and material effect on a major state financial assistance project to determine our auditing 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 57 One Southeast Third Avenue Tenth Floor Miami Florida 33131 Tel 30o 377 4228 Fax 30o 377 833' Offices in Miami Ft Lauderdale West Palm Beach Stuart www rchcpa com Mamba fSurnrmtInternah nalAss sites In wth ff mpnnap I b through tthe Id Member of th Amen anInstitut of Ce th d Pubh Ac mutant d member fth Hand Institute f C rtf d P bh A cunt is Honorable Mayor Village Council and Village Manager Village of Key Biscayne Flonda Page Two Our consideration of the internal control over compliance would not necessarily disclose all matters in the internal control that might be material weaknesses A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the nsk that non compliance with applicable requirements of laws regulations contracts and grants that would be material in relation to a major state financial assistance program being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions We noted no matters involving the internal control over compliance and its operation that we consider to be material weaknesses This report is intended solely for the information and use of the Mayor Village Council management Auditor General of the State of Florida 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 JLLP Miami Florida January 10 2003 AGO s,. 58 VILLAGE OF KEY BISCAYNE, FLORIDA SCHEDULE OF EXPENDITURES OF STATE FINANCIAL ASSISTANCE FISCAL YEAR ENDED SEPTEMBER 30 2002 ✓ L State Agency and Program Title Florida Department of Environmental Protection Direct Programs Florida Beach Erosion Control State State Contract CFSA Grant No No 37 003 Expenditures 99DA1 $ 934 077 Florida Department of Law Enforcement Direct Programs Local Law Enforcement Block Grant 16 592 02 CJ 2M 11 23 02-068 10 264 Department of Community Affairs Direct Programs Emergency Management Preparedness and Assistance Grant 52 008 02 CP 04 11 23 02 216 6 674 Florida Department of Health Bureau of EMS Direct Programs EMS Grant 64 005 C1013 14 789 Total expenditures of state financial assistance $ 965 804 59 VILLAGE OF KEY BISCAYNE, FLORIDA NOTE TO THE SCHEDULE OF EXPENDITURES OF STATE FINANCIAL ASSISTANCE FISCAL YEAR ENDED SEPTEMBER 30 2002 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 in this schedule is presented in accordance with the requirements of Chapter 10 550 Rules of the Auditor General Therefore some amounts presented in this schedule may differ from amounts presented in or used in the preparation of the general purpose financial statements pat 60 VILLAGE OF KEY BISCAYNE, FLORIDA SCHEDULE OF FINDINGS AND QUESTIONED COSTS FISCAL YEAR ENDED SEPTEMBER 30 2002 1 SECTION I SUMMARY OF AUDITOR S RESULTS Financial Statements Type of auditor s report issued Unqualzfzed Opznzon Internal control over financial reporting Material wealmess(es) identified? yes X no Reportable condition(s) identified not considered to be matenal wealmess7 yes X none Non compliance matenal to financial statements noted? yes X no State Financial Assistance Protects r� prima .m, Internal control over major programs Material wealmess(es) identified? Reportable condition(s) identified not considered to be material weakness? yes X no yes X none Type of auditor s report issued on compliance for major programs Unqualzfed Opznton Any audit findmgs disclosed that are required to be reported in accordance with Section 215 97(7)(f) Flonda Statutes yes X No Identification of major programs CSFA Numbers Name of State Program 37 003 Flonda Beach Erosion Control Dollar threshold used to distinguish between Type A and Type B programs $289 740 61 VILLAGE OF KEY BISCAYNE, FLORIDA SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) SECTION II — CURRENT YEAR COMMENTS AND RECOMMENDATIONS New Pronouncement Governmental Accounting Standards Board Statement No 34 Basic Financial Statements — and K Management s Discussion and Analysts — for State and Local Governments establishes new financial reporting requirements for state and local governments throughout the United States When implemented, it will create new information and will restructure much of the information that governments have presented in the past These new requirements were developed to make annual financial reports more comprehensive and easier to understand and use The new reporting model will include government wide financial statements as well as fund financial statements as well as management s discussion and analysis section Implementation will be required for the fiscal year ending September 30 2003 However many of the reporting requirements need to be addressed several years before the required implementation date One of the new requirements of GASB Statement No 34 is the capitalization of infrastructure assets Recommendation We recommend that the Village review the new requirements and create an action plan for implementation We also recommend that the Village consider increasing the threshold for capitalizing capital assets Currently the Village capitalizes fixed assets with a value of $500 or more we recommend that the Village consider increasing their capitalization policy to an amount m excess of that (i e $1 000 $2 500 $5 000) This does not effect the requirement to track fixed assets as required under Florida Statutes r I�. s, Management Response The Village is currently reviewing the requirements and initiating a plan SECTION III — STATE AWARD FINDINGS AND QUESTIONED COSTS None -62-