Fort Walton Beach — Comprehensive Financial Report September 30, 2021 — reading text

Development, the U.S. Department of Justice, and the Federal Emergency Management Agency. 47  CITY OF FORT WALTON BEACH, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2021 6. CHANGES IN CAPITAL ASSETS Capital asset activity for the year ended September 30, 2021, was as follows: Beginning Adjustments/ Ending Balance Increases Decreases Transfers Balance Governmental activities Capital assets not being depreciated/amortized Land $ 10,915,210 $ 20,076 $ - $ - $ 10,935,286 Construction in progress 30,110 1,054,433 - - 1,084,543 Total capital assets not being depreciated/amortized 10,945,320 1,074,509 - - 12,019,829 Capital assets being depreciated/amortized Buildings 36,419,950 62,772 (44,317) - 36,438,405 Improvements other than buildings (1) 33,571,877 570,461 (198,817) - 33,943,521 Software 573,318 - - - 573,318 Machinery and equipment 14,396,342 1,150,160 (431,218) - 15,115,284 Equipment under capital lease 108,673 - - - 108,673 Total capital assets being depreciated/amortized 85,070,160 1,783,393 (674,352) - 86,179,201 Less accumulated depreciation/amortization Buildings (12,719,540) (1,086,696) 31,821 (204,604) (13,979,019) (1) Improvements other than buildings (23,798,420) (941,084) 198,817 42 (24,540,645) Software (571,043) (501) - (2) (571,546) Machinery and equipment (9,932,667) (1,168,449) 432,948 204,606 (10,463,562) Total accumulated depreciation/amortization (47,021,670) (3,196,730) 663,586 42 (49,554,772) Total capital assets being depreciated/amortized, net 38,048,490 (1,413,337) (10,766) 42 36,624,429 Governmental activities, net $ 48,993,810 $ (338,828) $ (10,766) $ 42 $ 48,644,258 (1) Includes infrastructure assets 48  CITY OF FORT WALTON BEACH, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2021 6. CHANGES IN CAPITAL ASSETS – CONTINUED Beginning Adjustments/ Ending Balance Increases Decreases Transfers Balance Business-type activities Capital assets not being depreciated/amortized Land $ 709,678 $ - $ - $ - $ 709,678 Construction in progress 111,042 - - - 111,042 Easements 39,742 - - - 39,742 Total capital assets not being depreciated/amortized 860,462 - - - 860,462 Capital assets being depreciated/amortized Buildings 411,900 - (207,051) - 204,849 Improvements other than buildings 51,062,225 213,620 (35,410) - 51,240,435 Software 120,031 - - - 120,031 Machinery and equipment 11,231,827 539,934 (643,732) - 11,128,029 Total capital assets being depreciated/amortized 62,825,983 753,554 (886,193) - 62,693,344 Less accumulated depreciation/amortization Buildings (328,140) (5,677) 206,576 - (127,241) Improvements other than buildings (21,944,639) (1,711,844) 30,690 - (23,625,793) Software (91,519) (8,140) - - (99,659) Machinery and equipment (7,826,476) (724,256) 631,141 - (7,919,591) Total accumulated depreciation/amortization (30,190,774) (2,449,917) 868,407 - (31,772,284) Total capital assets being depreciated/amortized, net 32,635,209 (1,696,363) (17,786) - 30,921,060 Business-type activities, net $ 33,495,671 $(1,696,363) $ (17,786) $ - $ 31,781,522 49  CITY OF FORT WALTON BEACH, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2021 6. CHANGES IN CAPITAL ASSETS – CONTINUED Amortization of equipment under capital lease is included with depreciation expense in the financial statements. Depreciation and amortization expense was charged to functions/programs of the primary government as follows: Governmental activities General government $ 542,109 Public safety 889,837 Physical environment 58,063 Transportation 504,423 Economic environment 184,348 Culture and recreation 1,017,950 Total depreciation/amortization expense – governmental activities $ 3,196,730 Business-type activities Utilities Fund $ 1,768,020 Sanitation Fund 271,805 Stormwater Fund 410,092 Total depreciation/amortization expense – business-type activities $ 2,449,917 50  CITY OF FORT WALTON BEACH, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2021 7. DEFERRED OUTFLOWS OF RESOURCES AND DEFERRED INFLOWS OF RESOURCES As of September 30, 2021, the City had various components of deferred outflows of resources and deferred inflows of resources as follows: Governmental activities: Community General Redevelopment Governmental Fund Fund Activities Deferred outflows City pension contributions made subsequent to the measurement date $ - $ - $ 3,729,010 Net difference between projected and actual earnings on pension plan investments - - - Differences between expected and actual experience on pension plan actuarial assumptions - - 598,719 Changes in assumptions related to pension plan - - 1,258,271 City OPEB contributions made subsequent to the measurement date 180,039 Changes in assumptions related to OPEB plan - - 1,540,060 Total deferred outflows $ - $ - $ 7,306,099 Deferred inflows Differences between expected and actual experience on pension plan actuarial assumptions $ - $ - $ 406,838 Net difference between projected and actual earnings on pension plan investments - - 910,479 Changes in assumptions related to pension plan - - 62,924 Differences between expected and actual experience on OPEB plan actuarial assumptions - - 1,008,667 Changes in assumptions related to OPEB plan 100,791 Unavailable revenue – special assessments 29,699 235,626 - Unavailable revenue – long-term receivable from sale of buildings 548,617 - - Total deferred inflows $ 578,316 $ 235,626 $ 2,489,699 51  CITY OF FORT WALTON BEACH, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2021 7. DEFERRED OUTFLOWS OF RESOURCES AND DEFERRED INFLOWS OF RESOURCES – CONTINUED Business-type activities: Utilities Sanitation Stormwater Business-Type Fund Fund Fund Activities Deferred outflows City pension contributions made subsequent to the measurement date $ 220,623 $ 118,813 $ 37,795 $ 377,231 Deferred loss on refunding 65,953 - - 65,953 City OPEB contributions made