Fort Walton Beach — Annual Comprehensive Financial Report, September 30, 2023 — reading text

For tWal tonBeach,Fl ori da www. fwb. org 850- 833- 9500 AnnualComprehensi ve Fi nanci alReport FY2022- 23 CITYOFFORTWALTONBEACH,FLWITH COMPLIANCEMATTERSANDRESPONSES FISCALYEARENDEDSEPTEMBER30,2023  CITY OF FORT WALTON BEACH, FL City Council Left to right (standing): Travis Smith, Nic Allegretto, Bryce Jeter, and David Schmidt Left to right (seated): Payne Walker, Gloria DeBerry, Mayor Dick Rynearson, and Larry Patrick Council members are elected in odd years for four-year staggered terms. City Council meets on the second and fourth Tuesday of each month at 6:00 p.m. in the City Council Chambers located at 107 Miracle Strip Parkway, Fort Walton Beach, Florida. Appointed Officers Department Directors City Manager – Jeff Peters Finance – Nicole Nabors City Clerk – Kim M. Barnes, MMC Fire Services – Jeremy Morgan, Chief City Attorney – Kimberly Kopp Growth Management – Chris Frassetti Human Resources – Tarey Franxman Police Services – Robert Bage, Chief Public Works & Utility Services – Daniel Payne, PE Recreation & Cultural Services – Tiffiny Corcoran  Core Values Rather than being just words found on the website or located at the top of a letterhead, these core values are the guiding principles by which City Council, Department Directors, and City Staff will conduct themselves, allocate resources, and prioritize goals and objectives. These principles form a non-negotiable code of conduct and will guide our government on who we hire, how we train, and how we reward. These values will define who we are, what we stand for, and influence policies, procedures, and guidelines. Adopted by City Council in May 2011, after a collaborative effort by Department Directors and the City Manager to consolidate employee suggestions, these five core values represent the first milestone in instituting the City’s new Performance Excellence Program. Integrity We will conduct ourselves in an honest, trustworthy, and ethical manner. Accountability We will take full responsibility for our actions, resources, and attitudes. Teamwork We will work together to provide quality services. Customer Service We will be professional, use all available resources, and strive to meet the needs of our customers. Continual Improvement We will promote a culture that seeks to better our organization. Adopted by City Council in September 2011, after a collaborative effort by Department Directors and the City Manager, the updated Vision and Mission for the City are as follows: Vision The City of Fort Walton Beach: a recognized leader in the provision of Community Services. Mission To enhance and protect the Community by providing quality services.  Strategic Plan Adopted in May 2023 City Council’s primary responsibility is to shape public policy to achieve the citizens’ desires for the future. As time passes, the complexion of a community, its residents and leaders change, as do the priorities of the community. There is probably no more daunting a task that any community faces than planning for its future and identifying future priorities. The Strategic Plan is a multiyear plan and the budget process determines which parts of the Plan receive resources each year. Each Objective is in line with the City’s Vision, Mission Statement and Core Values. Throughout this document, Strategic Plan Objectives have been tied to expenses, capital improvement projects, and performance measures – look for the icons below CITY OF FORT WALTON BEACH, FLORIDA ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023 PREPARED BY: THE FINANCE DEPARTMENT City of Fort Walton Beach 107 Miracle Strip Parkway Fort Walton Beach, FL 32548 www.fwb.org  CITY OF FORT WALTON BEACH, FLORIDA TABLE OF CONTENTS FOR THE YEAR ENDED SEPTEMBER 30, 2023 Page CITY OFFICIALS I. INTRODUCTORY SECTION Table of Contents i Letter of Transmittal City Manager iv GFOA Certificate of Achievement x Organizational Chart xi II. FINANCIAL SECTION Independent Auditors' Report 1 A. MANAGEMENT'S DISCUSSION AND ANALYSIS 4 B. BASIC FINANCIAL STATEMENTS Government-Wide Financial Statements Statement of Net Position 15 Statement of Activities 16 Fund Financial Statements Governmental Funds Balance Sheet 17 Reconciliation of the Balance Sheet to the Statement of Net Position 18 Statement of Revenues, Expenditures and Changes in Fund Balance 19 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balance to the Statement of Activities 20 Proprietary Funds Statement of Net Position 21 Statement of Revenues, Expenses and Changes in Net Position 23 Statement of Cash Flows 24 Fiduciary Funds Statement of Fiduciary Net Position 26 Statement of Changes in Fiduciary Net Position 27 Notes to the Financial Statements 28 i  CITY OF FORT WALTON BEACH, FLORIDA TABLE OF CONTENTS FOR THE YEAR ENDED SEPTEMBER 30, 2023 Page Schedule II. FINANCIAL SECTION – CONTINUED C. REQUIRED SUPPLEMENTARY INFORMATION (UNAUDITED) Budgetary Comparison Information Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual – General Fund 85 Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual – Community Redevelopment Agency 86 Notes to the Required Supplementary Information 87 Pension and OPEB Schedules Schedules of Changes in Net Pension Liability and Related Ratios 88 Schedule of Changes in Total OPEB Liability and Related Ratios 92 Schedule of Pension Contributions 93 Schedule of Investment Returns 94 Notes to the Schedule of Pension Contributions - General Employees' Retirement Fund 95 Notes to the Schedule of Pension Contributions - Police Officers' Retirement Fund 97 Notes to the Schedule of Pension Contributions - Firefighters' Retirement Fund 99 D. COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES Non-Major Governmental Funds Combining Balance Sheet 101 Combining Statement of Revenues, Expenditures and Changes in Fund Balance 102 Schedules of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual Law Enforcement Trust Special Revenue Fund 103 Law Enforcement Trust Training Special Revenue Fund 104 Florida Building Code Special Revenue Fund 105 Community Development Block Grant Special Revenue Fund 106 Beal Memorial Cemetery Perpetual Care Special Revenue Fund 107 Debt Service Fund 108 III. STATISTICAL SECTION (UNAUDITED) Net Position by Component 109 1 Changes in Net Position 110 2 Fund Balances – Governmental Funds 112 3 Changes in Fund Balances – Governmental Funds 113 4 Revenues and Other Sources 114 5 Assessed Value of Taxable Property 115 6 Property Tax Rates Per $1,000 of Taxable Value - All Direct and Overlapping Governments 116 7 Principal Taxpayers 117 8 Property Tax Levies and Collections 118 9 ii  CITY OF FORT WALTON BEACH, FLORIDA TABLE OF CONTENTS FOR THE YEAR ENDED SEPTEMBER 30, 2023 Page Schedule III. STATISTICAL SECTION (UNAUDITED) – CONTINUED Ratios of Outstanding Debt by Type 119 10 Ratio of Net General Bonded Debt Outstanding 120 11 Pledged Revenue Coverage – Schedule of Revenue Bond Coverage 121 12 Direct and Overlapping Governmental Activities Debt – General Obligations 122 13 Major Employers 123 14 Miscellaneous Demographical Statistics 124 15 Full-Time Equivalent Employees by Function/Program 125 16 Permits,