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

$ 63,380 2023 65,281 2024 67,239 2025 69,256 2026 71,334 2027 through 2031 390,081 2032 through 2036 452,210 2037 through 2041 305,201 Total $ 1,483,982 23. SUBSEQUENT EVENTS Golf Course Irrigation System Contract In December 2021, the City entered into an agreement with a specialty contractor to perform the golf course irrigation system replacement project. The total contract amount is $672,500, which will be paid in installments as the work is completed. The project is expected to be completed in Spring 2022. 86 REQUIRED SUPPLEMENTARY INFORMATION  CITY OF FORT WALTON BEACH, FLORIDA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS (UNAUDITED) GENERAL EMPLOYEES’ RETIREMENT FUND Reporting Date * 2021 2020 2019 2018 2017 2016 2015 Total Pension Liability Service cost $ 366,197 $ 372,064 $ 446,214 $ 504,055 $ 557,163 $ 569,712 $ 622,382 Interest 3,723,744 3,888,510 3,827,379 3,771,606 3,317,396 3,314,990 3,222,809 Differences between expected and actual experience 60,721 (466,270) (265,877) (404,763) 400,221 (1,074,244) - 1 Changes of assumptions 618,633 (768,706) - - 4,485,495 - - Benefit payments, including refunds of employee contributions (3,327,697) (3,161,812) (3,157,696) (3,056,444) (2,858,889) (2,676,038) (2,575,304) Net change in total pension liability 1,441,598 (136,214) 850,020 814,454 5,901,386 134,420 1,269,887 Total pension liability – beginning 50,294,277 50,430,491 49,580,471 48,766,017 42,864,631 42,730,211 41,460,324 Total pension liability – ending (a) $ 51,735,875 $ 50,294,277 $ 50,430,491 $ 49,580,471 $ 48,766,017 $ 42,864,631 $ 42,730,211 Plan Fiduciary Net Position Contributions – employer $ 1,419,339 $ 1,751,654 $ 2,006,925 $ 1,254,097 $ 1,280,082 $ 1,355,041 $ 1,296,450 Contributions – member 147,885 150,018 158,138 171,869 202,268 209,567 212,790 Net investment income 4,869,412 1,788,274 4,975,937 4,967,834 4,031,981 (4,390) 3,228,153 Benefit payments, including refunds of employee contributions (3,327,697) (3,161,812) (3,157,696) (3,056,444) (2,858,889) (2,676,038) (2,575,304) Administrative expenses (50,568) (40,421) (49,518) (42,201) (35,704) (39,535) (42,483) Net change in plan fiduciary net position 3,058,371 487,713 3,933,786 3,295,155 2,619,738 (1,155,355) 2,119,606 Plan fiduciary net position – beginning 48,423,281 47,935,568 44,001,782 40,706,627 38,086,889 39,242,244 37,122,638 Plan fiduciary net position – ending (b) $ 51,481,652 $ 48,423,281 $ 47,935,568 $ 44,001,782 $ 40,706,627 $ 38,086,889 $ 39,242,244 Net pension liability – ending (a) – (b) $ 254,223 $ 1,870,996 $ 2,494,923 $ 5,578,689 $ 8,059,390 $ 4,777,742 $ 3,487,967 Plan fiduciary net position as a percentage of the total pension liability 99.51% 96.28% 95.05% 88.75% 83.47% 88.85% 91.84% Covered payroll $ 2,957,684 $ 3,000,359 $ 3,162,762 $ 3,437,375 $ 4,045,350 $ 4,191,304 $ 4,255,801 Net pension liability as a percentage of covered payroll 8.60% 62.36% 78.88% 162.30% 199.23% 113.99% 81.96% 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 in its July 1, 2019 actuarial valuation for non-special risk lives, with appropriate risk and collar adjustments made based on plan demographics. The investment rate of return assumption was lowered from 7.60% to 7.30% for the 2021 reporting date. * This schedule is intended to show information for ten years. Additional years will be displayed as they become available. 87  CITY OF FORT WALTON BEACH, FLORIDA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS (UNAUDITED) POLICE OFFICERS’ RETIREMENT FUND Reporting Date * 2021 2020 2019 2018 2017 2016 2015 Total Pension Liability Service cost $ 546,326 $ 384,431 $ 395,440 $ 334,061 $ 344,958 $ 336,234 $ 322,118 Interest 2,143,525 1,976,534 2,112,261 2,084,744 1,948,181 1,953,123 1,905,286 Change in excess state money (172,843) 40,065 20,893 8,823 - - - 3 Changes of benefit terms 1,428,025 - - - - - - Differences between expected and actual experiences (211,485) 283,813 (833,418) (343,066) (425,107) (659,966) - 2 Changes of assumptions 46,143 584,615 (251,695) - 1,633,122 - - Benefit payments, including refunds of employee contributions (1,868,482) (1,851,074) (1,764,575) (1,821,727) (1,744,710) (1,655,069) (1,632,053) Net change in total pension liability 1,911,209 1,418,384 (321,094) 262,835 1,756,444 (25,678) 595,351 Total pension liability – beginning 28,099,293 26,680,909 27,002,003 26,739,168 24,982,724 25,008,402 24,413,051 Total pension liability – ending (a) $ 30,010,502 $ 28,099,293 $ 26,680,909 $ 27,002,003 $ 26,739,168 $ 24,982,724 $ 25,008,402 Plan Fiduciary Net Position 1 Contributions – employer $ 806,946 $ 732,187 $ 830,613 $ 569,215 $ 577,564 $ 628,975 $ 836,053 Contributions – state 217,473 221,641 202,468 190,399 181,303 175,025 175,703 Contributions – member 132,013 113,192 112,112 104,557 102,214 101,886 96,591 Net investment income 2,166,715 1,085,486 1,609,609 2,036,244 1,698,093 (538,198) 1,869,244 Benefit payments, including refunds of employee contributions (1,868,482) (1,851,074) (1,764,575) (1,821,727) (1,744,710) (1,655,069) (1,632,053) Administrative expenses (57,304) (64,930) (54,400) (39,184) (44,882) (25,084) (38,242) Net change in plan fiduciary net position 1,397,361 236,502 935,827 1,039,504 769,582 (1,312,465) 1,307,296 Plan fiduciary net position – beginning 22,132,402 21,895,900 20,960,073 19,920,569 19,150,987 20,463,452 19,156,156 Plan fiduciary net position – ending (b) $ 23,529,763 $ 22,132,402 $ 21,895,900 $ 20,960,073 $ 19,920,569 $ 19,150,987 $ 20,463,452 Net pension liability – ending (a) – (b) $ 6,480,739 $ 5,966,891 $ 4,785,009 $ 6,041,930 $ 6,818,599 $ 5,831,737 $ 4,544,950 Plan fiduciary net position as a percentage of the total pension liability 78.41% 78.76% 82.07% 77.62% 74.50% 76.66% 81.83% Covered payroll $ 2,640,254 $ 2,263,844 $ 2,242,245 $ 2,091,146 $ 2,073,208 $ 2,037,716 $ 1,975,478 Net pension liability as a percentage of covered payroll 245.46% 263.57% 213.40% 288.93% 328.89% 286.19% 230.07% Notes: 1 Adjusted for actual contributions made 2 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 in its July 1, 2019 actuarial valuation for special risk lives, with appropriate risk and collar adjustments made based on plan demographics. For the 2021 reporting date, changes of assumptions resulted from the changes in benefit terms discussed below; the retirement assumptions were updated to assume 25% probability of retirement between ages 52-54 with less than 25 year of service, as well as 50% probability of retirement upon completion of 25 years of service, and a 100% probability of retirement upon completion of 26 or more years of service. The investment rate of return assumption was lowered from 7.40% to 7.20% for the 2021 reporting date. 3 For the 2021