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

obligations payable 40,942 - 61,526 102,468 Revenue note payable 5,185,000 - - 5,185,000 State revolving loan payable 8,941,532 - - 8,941,532 Other post-employment benefits 515,695 343,455 135,237 994,387 Net pension liability 1,230,881 940,727 135,064 2,306,672 Total non-current liabilities 16,011,758 1,339,002 341,279 17,692,039 TOTAL LIABILITIES 21,675,608 1,580,506 408,240 23,664,354 DEFERRED INFLOWS OF RESOURCES 437,675 235,405 92,871 765,951 NET POSITION Net investment in capital assets 11,377,825 1,175,639 3,003,269 15,556,733 Restricted Debt service 157,228 - - 157,228 System improvements 434,824 - - 434,824 Unrestricted 10,574,113 2,513,267 1,352,104 14,439,484 TOTAL NET POSITION $ 22,543,990 $ 3,688,906 $ 4,355,373 $ 30,588,269 See notes to the financial statements. 22  CITY OF FORT WALTON BEACH, FLORIDA PROPRIETARY FUNDS STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION FOR THE YEAR ENDED SEPTEMBER 30, 2023 Sanitation Stormwater Utilities Fund Fund Fund Total OPERATING REVENUES Charges for services $ 11,773,115 $ 5,018,548 $ 1,036,590 $ 17,828,253 OPERATING EXPENSES Personal services 2,301,169 1,575,744 184,297 4,061,210 Operating 5,525,200 2,924,858 330,927 8,780,985 Depreciation/amortization expense 1,817,841 274,030 447,121 2,538,992 Total operating expenses 9,644,210 4,774,632 962,345 15,381,187 OPERATING INCOME 2,128,905 243,916 74,245 2,447,066 NON-OPERATING REVENUES (EXPENSES) Rental income 16,893 - - 16,893 Interest expense (353,763) - (5,577) (359,340) Amortization (5,613) - - (5,613) Gain on disposal of capital assets 50,435 - - 50,435 Investment earnings 63,007 16,202 3,601 82,810 Interest income 196,625 66,692 24,100 287,417 Grants in aid (398) - - (398) Miscellaneous 140 1,440 - 1,580 Total non-operating revenues (expenses) (32,674) 84,334 22,124 73,784 INCOME BEFORE CAPITAL CONTRIBUTIONS AND TRANSFERS 2,096,231 328,250 96,369 2,520,850 CAPITAL CONTRIBUTIONS AND TRANSFERS Capital grants and contributions - - 95,728 95,728 Impact fees 26,942 - - 26,942 Transfers out (1,239,251) (360,348) (198,166) (1,797,765) Total capital contributions and transfers (1,212,309) (360,348) (102,438) (1,675,095) CHANGE IN NET POSITION 883,922 (32,098) (6,069) 845,755 NET POSITION AT BEGINNING OF YEAR 21,660,068 3,721,004 4,361,442 29,742,514 NET POSITION AT END OF YEAR $ 22,543,990 $ 3,688,906 $ 4,355,373 $ 30,588,269 See notes to the financial statements. 23  CITY OF FORT WALTON BEACH, FLORIDA PROPRIETARY FUNDS STATEMENT OF CASH FLOWS FOR THE YEAR ENDED SEPTEMBER 30, 2023 Sanitation Stormwater Utilities Fund Fund Fund Total CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers and users $ 15,471,406 $ 5,057,493 $ 1,044,438 $ 21,573,337 Payments to suppliers (5,806,417) (2,926,687) (346,473) (9,079,577) Payments to employees (2,315,126) (1,304,202) (247,310) (3,866,638) Miscellaneous income 17,033 1,440 - 18,473 Net cash provided by operating activities 7,366,896 828,044 450,655 8,645,595 CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES Repayments on interfund loan - 53,502 - 53,502 Grants in aid (398) - - (398) Transfers out (1,239,251) (360,348) (198,166) (1,797,765) Net cash used in non-capital financing activities (1,239,649) (306,846) (198,166) (1,744,661) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Impact fee receipts 26,942 - - 26,942 Acquisitions of capital assets (3,255,569) (8,920) (157,258) (3,421,747) Proceeds from sale of capital assets 50,435 - - 50,435 Proceeds from issuance of leases 35,644 - - 35,644 Principal paid on revenue note (484,000) - - (484,000) Principal paid on state revolving loan (748,307) - - (748,307) Principal paid on lease obligations (20,800) - (39,437) (60,237) Interest paid on long-term debt and leases (359,073) - (5,577) (364,650) Net cash used in capital and related financing activities (4,754,728) (8,920) (202,272) (4,965,920) CASH FLOWS FROM INVESTING ACTIVITIES Purchases of investments (3,105,947) (808,292) (185,310) (4,099,549) Proceeds from sales and maturities of investments 2,852,103 733,398 162,978 3,748,479 Interest and investment earnings, net 259,632 82,894 27,701 370,227 Net cash provided by investing activities 5,788 8,000 5,369 19,157 NET CHANGE IN CASH AND CASH EQUIVALENTS 1,378,307 520,278 55,586 1,954,171 CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 1,570,952 80,268 430,584 2,081,804 CASH AND CASH EQUIVALENTS AT END OF YEAR $ 2,949,259 $ 600,546 $ 486,170 $ 4,035,975 See notes to the financial statements. 24  CITY OF FORT WALTON BEACH, FLORIDA PROPRIETARY FUNDS STATEMENT OF CASH FLOWS – CONTINUED FOR THE YEAR ENDED SEPTEMBER 30, 2023 Sanitation Stormwater Utilities Fund Fund Fund Total CASH AND CASH EQUIVALENTS AT END OF YEAR CONSIST OF Current assets $ 2,028,838 $ 595,066 $ 486,170 $ 3,110,074 Restricted assets 920,421 5,480 - 925,901 Total cash and cash equivalents $ 2,949,259 $ 600,546 $ 486,170 $ 4,035,975 RECONCILIATION OF OPERATING INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES Operating income $ 2,128,905 $ 243,916 $ 74,245 $ 2,447,066 Adjustments to reconcile operating income to net cash provided by operating activities: Depreciation 1,817,841 274,030 447,121 2,538,992 Miscellaneous revenue 17,033 1,440 - 18,473 Decrease (increase) in assets: Accounts receivable 95,015 34,345 7,848 137,208 Inventory 238 - - 238 Decrease in deferred outflows of resources (1,178,228) (644,119) (193,530) (2,015,877) Increase (decrease) in liabilities: Accounts payable (280,740) (1,003) (15,546) (297,289) Compensated absences payable (2,428) 8,483 7,131 13,186 Wages 4,520 8,485 3,702 16,707 Other liabilities (715) (826) - (1,541) Customer deposits (26,855) 4,600 - (22,255) Unearned revenue 3,646,386 - - 3,646,386 Net pension liability 2,485,701 1,616,489 350,026 4,452,216 Total OPEB liability (251,769) (167,693) (66,158) (485,620) Increase in deferred inflows of resources