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

Current General governmental services 4,407,665 - - 4,407,665 Public safety 13,905,764 333,462 628,488 14,867,714 Physical environment 434,119 - 11,098 445,217 Transportation 938,417 - - 938,417 Economic environment 19,500 755,547 251,792 1,026,839 Culture and recreation 5,170,888 - - 5,170,888 Capital outlay 3,916,725 2,062,487 39,739 6,018,951 Debt service Principal 738,804 - 1,749,218 2,488,022 Interest 25,273 - 657,643 682,916 Total expenditures 29,557,155 3,151,496 3,337,978 36,046,629 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES 1,129,639 991,665 (1,839,780) 281,524 OTHER FINANCING SOURCES (USES) Sale of general capital assets 4,668,757 - - 4,668,757 Issuance of financing contracts 304,825 - - 304,825 Issuance of subscription liabilities 971,904 - - 971,904 Transfers in 1,797,765 - 2,441,479 4,239,244 Transfers out (2,441,479) - - (2,441,479) Total other financing sources (uses) 5,301,772 - 2,441,479 7,743,251 NET CHANGE IN FUND BALANCE 6,431,411 991,665 601,699 8,024,775 FUND BALANCE AT BEGINNING OF YEAR 27,254,378 5,234,216 4,780,723 37,269,317 FUND BALANCE AT END OF YEAR $ 33,685,789 $ 6,225,881 $ 5,382,422 $ 45,294,092 See notes to the financial statements. 19  CITY OF FORT WALTON BEACH, FLORIDA GOVERNMENTAL FUNDS RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE TO THE STATEMENT OF ACTIVITIES FOR THE YEAR ENDED SEPTEMBER 30, 2023 Net change in fund balance – governmental funds (page 19) $ 8,024,775 Amounts reported for governmental activities in the statement of activities are different because: Governmental funds do not report capital assets on the balance sheet; however, they are reported in the government-wide financial statements. Governmental funds report capital outlays as expenditures; however, in the statement of activities, the cost of those assets is depreciated/amortized over the estimated useful lives of the assets. Expenditures for capital assets 6,018,951 Less current year depreciation/amortization (3,969,668) 2,049,283 Governmental funds do not report capital assets on the balance sheet; however, they are reported in the government-wide financial statements. Accordingly, proceeds received for disposals of capital assets are shown as income in the governmental financial statements and a gain or loss is reported in the statement of activities. In addition, capital asset reassignments are reported as transfers on the statement of activities. Disposals and transfers of capital assets (397,439) Accumulated depreciation/amortization – disposals and transfers 362,329 (35,110) Special assessment revenue in the governmental funds is recognized when due; however, the revenue was recognized in the statement of activities when it was earned (when levied). Payments received from special assessments (211,141) Special assessment for interest and penalties 1,756 Seller financed sales of capital assets with promissory note 40,400 Payments received on receivable related to the sale of capital assets (56,519) (225,504) The issuance of long-term debt provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net position. Also, governmental funds report the effect of issuance costs, premiums, discounts and similar items when debt is first issued, whereas these amounts are deferred and amortized in the statement of activities. In addition, long- term debt reassignments are reported as transfers on the statement of activities. Proceeds from issuance of financing contracts and subscription liabilities (1,276,729) Principal payments on long-term liabilities 2,488,022 Change in accrued interest on long-term debt (45,146) 1,166,147 Some expenses reported in the statement of activities do not require the use of current financial resources and therefore are not reported as expenditures in governmental funds: Change in net pension liability and related deferred inflows and deferred outflows of resources (3,145,696) Change in other post-employment benefits liability and related deferred inflows and deferred outflows of resources (40,270) Change in long-term compensated absences (66,861) (3,252,827) Change in net position of governmental activities (page 16) $ 7,726,764 See notes to the financial statements. 20  CITY OF FORT WALTON BEACH, FLORIDA PROPRIETARY FUNDS STATEMENT OF NET POSITION SEPTEMBER 30, 2023 Sanitation Stormwater Utilities Fund Fund Fund Total ASSETS Current assets Cash and cash equivalents $ 2,028,838 $ 595,066 $ 486,170 $ 3,110,074 Restricted assets – cash and cash equivalents 920,421 5,480 - 925,901 Investments 12,390,703 2,516,529 813,925 15,721,157 Receivables, net 894,878 315,290 68,495 1,278,663 Advance to other funds - 54,574 - 54,574 Due from other governments - - 110,746 110,746 Inventory – at cost 22,832 - - 22,832 Prepaid assets - - 4,534 4,534 Total current assets 16,257,672 3,486,939 1,483,870 21,228,481 Other assets Advance to other funds - - - - Other receivables, net 3,827 - - 3,827 Lease obligation receivable 67,992 - - 67,992 Total other assets 71,819 - - 71,819 Capital assets, net Non-depreciable/amortizable 1,621,841 - 181,489 1,803,330 Depreciable/amortizable, net 25,151,574 1,175,639 2,924,606 29,251,819 Total capital assets 26,773,415 1,175,639 3,106,095 31,055,149 Total non-current assets 26,845,234 1,175,639 3,106,095 31,126,968 TOTAL ASSETS 43,102,906 4,662,578 4,589,965 52,355,449 DEFERRED OUTFLOWS OF RESOURCES 1,554,367 842,239 266,519 2,663,125 See notes to the financial statements. 21  CITY OF FORT WALTON BEACH, FLORIDA PROPRIETARY FUNDS STATEMENT OF NET POSITION – CONTINUED SEPTEMBER 30, 2023 Sanitation Stormwater Utilities Fund Fund Fund Total LIABILITIES Current liabilities Accounts payable $ 142,503 $ 154,537 $ 9,450 $ 306,490 Accrued liabilities Compensated absences 32,570 18,274 3,151 53,995 Wages 95,835 54,350 13,060 163,245 Interest 64,533 - - 64,533 Due to other governments - 8,863 - 8,863 Lease obligations payable 22,249 - 41,300 63,549 Revenue note payable 498,000 - - 498,000 State revolving loan payable 762,594 - - 762,594 Payable from restricted assets Customer deposits 328,369 5,480 - 333,849 Unearned revenues 3,717,197 - - 3,717,197 Total current liabilities 5,663,850 241,504 66,961 5,972,315 Non-current liabilities Accrued liabilities Compensated absences 97,708 54,820 9,452 161,980 Lease