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

retirement Payroll growth: None Actuarial asset All assets are valued at fair value with an adjustment made to uniformly spread method: actuarial investment gains and losses (as measured by actual fair value investment return against expected fair value investment return) over a five-year period. 95  CITY OF FORT WALTON BEACH, FLORIDA REQUIRED SUPPLEMENTARY INFORMATION NOTES TO THE SCHEDULE OF PENSION CONTRIBUTIONS (UNAUDITED) – CONTINUED POLICE OFFICERS’ RETIREMENT FUND Salary increases: Service Years Assumption Less than 1 10.0% 1-4 6.5% 5-9 6.0% 10-14 5.5% 15-19 4.5% 20+ 3.5% In addition to the table on the previous page, projected salary at retirement is increased 20% to account for non-regular compensation. Disability rate: % Becoming Disabled During the Age Year 20 0.28% 25 0.30% 30 0.36% 35 0.46% 40 0.60% 45 1.02% 50 2.00% 55 3.10% 60 4.18% Termination rate: Service Years Termination Probability Less than 2 15.0% 2-4 12.0% 5-6 10.0% 7-9 2.0% 10 8.0% 11 7.5% 12 7.0% 13 6.5% 14-19 6.0% 20+ 2.0% 96  CITY OF FORT WALTON BEACH, FLORIDA REQUIRED SUPPLEMENTARY INFORMATION NOTES TO THE SCHEDULE OF PENSION CONTRIBUTIONS (UNAUDITED) FIREFIGHTERS’ RETIREMENT FUND Valuation Date: October 1, 2019 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: Actuarial cost method: Entry Age Normal Actuarial Cost Method Mortality rates: Healthy lives: Female: RP2000 Generational, 100% Annuitant White Collar, Scale BB Male: RP2000 Generational, 10% Annuitant White Collar / 90% Annuitant Blue Collar, Scale BB Disabled lives: Female: 60% RP2000 Disabled Female set forward two years / 40% Annuitant White Collar with no set back, no projection scale Male: 60% RP2000 Disabled Male set back four years / 40% Annuitant White Collar with no set back, no projection scale Interest rate: 7.40% per year compounded annually, net of investment related expenses Disability rate: See table below; it is assumed that 75% of disablements and active Member deaths are service related. Termination rate: See table below; assumed rates were approved in conjunction with an actuarial experience study dated June 2017. Salary increases: See table below; assumed rates were approved in conjunction with an actuarial experience study dated June 2017. Cost-of-living increase: 3.00% per year beginning at age 58 Payroll growth: 1.49% per year, in compliance with Part VII of Chapter 112, Florida Statutes Actuarial asset All assets are valued at fair value with an adjustment made to uniformly spread method: actuarial investment gains and losses (as measured by actual fair value investment return against expected fair value investment return) over a five-year period. Salary increases: Service Years Increase 0 12.0% 1-9 6.0% 10+ 5.0% 97  CITY OF FORT WALTON BEACH, FLORIDA REQUIRED SUPPLEMENTARY INFORMATION NOTES TO THE SCHEDULE OF PENSION CONTRIBUTIONS (UNAUDITED) – CONTINUED FIREFIGHTERS’ RETIREMENT FUND Disability rate: Age Disability Rate 20 0.14% 25 0.15% 30 0.18% 35 0.23% 40 0.30% 45 0.51% 50 1.00% 55 1.55% 60 2.09% 65 2.09% Termination rate: Service Years Termination Rate 0 13.0% 1 12.0% 2 11.0% 3 10.0% 4 9.0% 5 8.0% 6 7.0% 7 6.5% 8 6.0% 9 5.5% 10 5.0% 11 4.5% 12+ 4.0% Retirement age: Member Age Retirement Probability 45 - 54 3.0% 55+ 100.0% In addition to the above table, 100% are assumed to retire upon completion of 25 years of service. The assumed rates in this table were approved in conjunction with an actuarial experience study dated June 2017. 98  CITY OF FORT WALTON BEACH, FLORIDA NON-MAJOR GOVERNMENTAL FUNDS COMBINING BALANCE SHEET SEPTEMBER 30, 2021 Special Revenue Funds Beal Law Memorial Total Law Enforcement Florida Community Cemetery Nonmajor Enforcement Trust Building Development Perpetual Governmental Trust Training Code Block Grant Care Debt Service Funds ASSETS Cash and cash equivalents $ 191,051 $ 18,029 $ 950,233 $ - $ 112,131 $ 21,156 $ 1,292,600 Investments - - - - 4,046,608 - 4,046,608 Due from other governments 4,523 - - 42,392 - - 46,915 TOTAL ASSETS $ 195,574 $ 18,029 $ 950,233 $ 42,392 $ 4,158,739 $ 21,156 $ 5,386,123 LIABILITIES Accounts payable $ 480 $ - $ 4,082 $ 388 $ 4,507 $ - $ 9,457 Accrued liabilities 86,886 - 11,742 - - - 98,628 Due to other funds - - - 61,786 - - 61,786 Total liabilities 87,366 - 15,824 62,174 4,507 - 169,871 FUND BALANCE Restricted 108,208 18,029 934,409 - - 21,156 1,081,802 Committed - - - - 4,154,232 - 4,154,232 Unassigned - - - (19,782) - - (19,782) Total fund balance 108,208 18,029 934,409 (19,782) 4,154,232 21,156 5,216,252 TOTAL LIABILITIES AND FUND BALANCE $ 195,574 $ 18,029 $ 950,233 $ 42,392 $ 4,158,739 $ 21,156 $ 5,386,123 99  CITY OF FORT WALTON BEACH, FLORIDA NON-MAJOR GOVERNMENTAL FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE FOR THE YEAR ENDED SEPTEMBER 30, 2021 Special Revenue Funds Beal Law Memorial Total Law Enforcement Florida Community Cemetery Nonmajor Enforcement Trust Building Development Perpetual Debt