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

This schedule is intended to show information for ten years. Additional years will be displayed as they become available. 91  CITY OF FORT WALTON BEACH, FLORIDA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF CHANGES IN NET OPEB LIABILITY AND RELATED RATIOS (UNAUDITED) FORT WALTON BEACH RETIREE HEALTH CARE PLAN Reporting Date * 2023 2022 2021 2020 2019 2018 Total OPEB Liability Service cost $ 399,330 $ 410,684 $ 230,648 $ 190,791 $ 91,714 $ 105,139 Interest 176,997 155,984 228,430 235,597 205,213 187,954 2 Differences between expected and actual experience (978,450) - (1,195,507) - (494,909) - 1 Changes of assumptions (1,661,244) (334,427) 1,699,860 519,859 288,811 (639,051) Benefit payments (233,797) (218,502) (250,893) (232,308) (151,409) (139,227) Net change in total OPEB liability (2,297,164) 13,739 712,538 713,939 (60,580) (485,185) Total OPEB liability - beginning 7,000,692 6,986,953 6,274,415 5,560,476 5,621,056 6,106,241 Total OPEB liability - ending (a) 4,703,528 7,000,692 6,986,953 6,274,415 5,560,476 5,621,056 Plan Fiduciary Net Position Contributions - employer 236,797 228,302 253,893 242,108 154,409 148,727 3 Benefit payments (233,797) (218,502) (250,893) (232,308) (151,409) (139,227) Administrative expenses (3,000) (9,800) (3,000) (9,800) (3,000) (9,500) Net change in plan fiduciary net position - - - - - - Plan fiduciary net position - beginning - - - - - - Plan fiduciary net position - ending (b) - - - - - - Sponsor's total OPEB liability - ending (a) - (b) $ 4,703,528 $ 7,000,692 $ 6,986,953 $ 6,274,415 $ 5,560,476 $ 5,621,056 Plan fiduciary net position as a percentage of total OPEB liability ** 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Covered-employee payroll (projected) $ 13,747,571 $ 12,653,509 $ 12,085,491 $ 11,392,366 $ 10,891,364 $ 7,927,323 City's total OPEB liability as a percentage of covered-employee payroll 34.21% 55.33% 57.81% 55.08% 51.05% 70.91% Notes: 1 As a result of Chapter 2015-157, Laws of Florida, the assumed rates of mortality were changed to the assumptions used by the Florida Retirement System to match the pension plan assumptions. Changes of assumptions and other inputs also reflect the changes in the discount rate each period. The following are the discount rates used in each period: FY 2023: 4.77% FY 2022: 2.43% FY 2021: 2.14% FY 2020: 3.58% FY 2019: 4.18% In addition, there were changes to actuarial assumptions for updated health care costs and premiums, health care trend rates, mortality rates, retirement rates, and disability rates. 2 Differences between expected and actual experience reflects the impact of changes to the census data from the prior valuation to the valuation as of 9/30/2020. * This schedule is intended to show information for ten years. Additional years will be displayed as they become available. **There are no OPEB plan assets accumulated in a GASB compliant trust to pay for related plan benefits. 92  CITY OF FORT WALTON BEACH, FLORIDA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PENSION CONTRIBUTIONS (UNAUDITED) LAST TEN FISCAL YEARS Plan Year 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 General Employees' Retirement Fund Actuarially determined contribution $ 289,455 $ 580,847 $ 1,024,247 $ 1,419,339 $ 1,602,192 $ 1,771,147 $ 1,120,584 $ 1,197,424 $ 1,286,744 $ 1,187,794 Contributions in relation to the actuarially determined contributions 314,371 580,847 1,024,247 1,419,339 1,751,654 2,006,925 1,254,097 1,280,082 1,355,041 1,296,450 Contribution deficiency (excess) $ (24,916) $ - $ - $ - $ (149,462) $ (235,778) $ (133,513) $ (82,658) $ (68,297) $ (108,656) Covered payroll1 $ 2,140,710 $ 2,571,886 $ 2,723,263 $ 2,957,684 $ 3,000,359 $ 3,162,762 $ 3,437,375 $ 4,045,350 $ 4,191,304 $ 4,255,801 Contributions as a percentage of covered payroll 14.69% 22.58% 37.61% 47.99% 58.38% 63.45% 36.48% 32.33% 32.33% 30.46% Police Officers' Retirement Fund Actuarially determined contribution $ 1,643,297 $ 1,429,945 $ 1,456,033 $ 1,024,419 $ 837,623 $ 928,289 $ 650,347 $ 709,037 $ 772,294 $ 932,426 Contributions in relation to the actuarially determined contributions 1,694,073 1,550,980 1,456,033 1,024,419 913,763 1,033,081 750,791 790,573 772,294 1,011,756 Contribution deficiency (excess) $ (50,776) $ (121,035) $ - $ - $ (76,140) $ (104,792) $ (100,444) $ (81,536) $ - $ (79,330) Covered payroll1 $ 3,526,388 $ 3,035,976 $ 2,941,480 $ 2,640,254 $ 2,263,844 $ 2,242,245 $ 2,091,146 $ 2,073,208 $ 2,037,716 $ 1,975,478 Contributions as a percentage of covered payroll 48.04% 51.09% 49.50% 38.80% 40.36% 46.07% 35.90% 38.13% 37.90% 51.22% Firefighters' Retirement Fund Actuarially determined contribution $ 1,627,107 $ 1,546,144 $ 1,534,814 $ 1,293,057 $ 1,127,832 $ 1,138,295 $ 899,929 $ 816,138 $ 748,086 $ 824,007 Contributions in relation to the actuarially determined contributions 1,706,211 1,646,716 1,625,961 1,441,189 1,236,461 1,284,763 998,712 945,923 877,376 839,825 Contribution deficiency (excess) $ (79,104) $ (100,572) $ (91,147) $ (148,132) $ (108,629) $ (146,468) $ (98,783) $ (129,785) $ (129,290) $ (15,818) Covered payroll1 $ 3,123,046 $ 2,917,251 $ 2,826,544 $ 2,560,508 $ 2,364,429 $ 2,276,592 $ 2,168,503 $ 2,060,954 $ 2,072,260 $ 2,121,613 Contributions as a percentage of covered payroll 54.63% 56.45% 57.52% 56.29% 52.29% 56.43% 46.06% 45.90% 42.34% 39.58% ¹ As of 2014, the Covered payroll numbers shown are in compliance with GASB Statement No. 82. See notes to the schedule of contributions. 93  CITY OF FORT WALTON BEACH, FLORIDA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF INVESTMENT RETURNS SEPTEMBER 30, 2023 Measurement Period Ended: 9/30/2022 9/30/2021 9/30/2020 9/30/2019 9/30/2018 9/30/2017 9/30/2016 9/30/2015 9/30/2014 General Employees' Retirement Fund Annual Money-Weighted Rate of Return Net of Investment Expense -14.99% 21.35% 10.25% 3.78% 11.43% 12.45% 10.78% -0.01% 8.82% Police Officers' Retirement Fund Annual Money-Weighted Rate of Return Net of Investment Expense -13.47% 19.34% 10.01% 5.08% 7.82% 10.52% 9.12% -2.69% 9.96% Firefighters' Retirement Fund Annual Money-Weighted Rate of Return Net of Investment Expense -14.84% 19.75% 11.01% 3.33% 9.24% 9.88% 7.25% 0.12% 9.72% Note: This information is not available for previous years. 94  CITY OF FORT WALTON BEACH, FLORIDA REQUIRED SUPPLEMENTARY INFORMATION NOTES TO THE SCHEDULE OF PENSION CONTRIBUTIONS (UNAUDITED) GENERAL EMPLOYEES’ RETIREMENT FUND Valuation Date: October 1, 2021 Notes: Actuarially determined contribution rates are calculated as of October 1, which is two years prior to the end of the fiscal year in which contributions are reported. Methods and Assumptions Used to Determine Contribution Rates: Funding method: Entry-Age Actuarial Cost Method Mortality rates: Healthy lives: Female: PubG.H-2010 for Employees Male: PubG.H-2010 (Below Median) for Employees, set back one year Disabled lives: Female: PubG.H-2010 for Disabled Retirees, set forward three years Male: PubG.H-2010 for Disabled Retirees, set forward three years Interest rate: 7.00% per year, compounded annually,