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

259,960 - - 259,960 Restricted 5,712,331 4,133,412 1,081,802 10,927,545 Committed 8,649,189 - 4,154,232 12,803,421 Assigned 3,908,571 - - 3,908,571 Unassigned 8,845,558 - (19,782) 8,825,776 Total fund balance 27,375,609 4,133,412 5,216,252 36,725,273 TOTAL LIABILITIES, DEFERRED INFLOW OF RESOURCES, AND FUND BALANCE $ 31,412,527 $ 4,406,855 $ 5,386,123 $ 41,205,505 See notes to the financial statements. 17  CITY OF FORT WALTON BEACH, FLORIDA GOVERNMENTAL FUNDS RECONCILIATION OF THE BALANCE SHEET TO THE STATEMENT OF NET POSITION SEPTEMBER 30, 2021 Fund balance, total governmental funds (page 17) $ 36,725,273 Amounts reported for governmental activities in the statement of net position are different because: Capital assets used in governmental activities are not financial resources and therefore are not reported in the funds. Governmental non-depreciable/amortizable assets 12,019,829 Governmental depreciable/amortizable assets 86,179,201 Less accumulated depreciation/amortization (49,554,772) 48,644,258 Unavailable revenues in governmental funds is susceptible to full accrual on the entity-wide statements. Special assessments 265,325 Receivable related to sale of capital asset 548,617 813,942 Deferred inflows of resources and deferred outflows of resources are not available/receivable or due/payable, respectively, in the current period and therefore are not reported in the governmental funds. Deferred outflows of resources related to pension plans 5,586,000 Deferred outflows of resources related to OPEB plan 1,720,099 Deferred inflows of resources related to pension plans (1,380,241) Deferred inflows of resources related to OPEB plan (1,109,458) 4,816,400 Long-term liabilities are not due and payable in the current period and therefore are not reported in the governmental funds. Notes payable (21,593,776) Accrued interest (166,446) Capital leases (944,447) Compensated absences (933,287) Other post-employment benefits (5,509,850) Net pension liability (16,539,184) (45,686,990) Net position of governmental activities (page 15) $ 45,312,883 See notes to the financial statements. 18  CITY OF FORT WALTON BEACH, FLORIDA GOVERNMENTAL FUNDS STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE FOR THE YEAR ENDED SEPTEMBER 30, 2021 Community Other Total Redevelopment Governmental Governmental General Agency Funds Funds REVENUES Taxes $ 12,354,453 $ 1,350,992 $ - $ 13,705,445 Permits and fees 3,442,354 24,584 635,702 4,102,640 Intergovernmental 7,815,811 974,980 303,697 9,094,488 Charges for services 3,461,193 - - 3,461,193 Fines 64,130 - 13,346 77,476 Miscellaneous 621,199 68,615 668,515 1,358,329 Total revenues 27,759,140 2,419,171 1,621,260 31,799,571 EXPENDITURES Current General governmental services 3,632,924 - - 3,632,924 Public safety 11,980,036 534,993 473,245 12,988,274 Physical environment 476,113 - 15,413 491,526 Transportation 741,097 - - 741,097 Economic environment - 648,786 296,871 945,657 Culture and recreation 4,924,696 - - 4,924,696 Capital outlay 2,651,824 161,994 9,584 2,823,402 Debt service Principal - - 1,203,619 1,203,619 Interest 4,239 - 704,720 708,959 Total expenditures 24,410,929 1,345,773 2,703,452 28,460,154 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES 3,348,211 1,073,398 (1,082,192) 3,339,417 OTHER FINANCING SOURCES (USES) Sale of general capital assets 748,986 - - 748,986 Issuance of long-term debt 2,499,320 - - 2,499,320 Transfers in 1,759,782 - 1,963,506 3,723,288 Transfers out (1,963,506) - - (1,963,506) Total other financing sources (uses) 3,044,582 - 1,963,506 5,008,088 NET CHANGE IN FUND BALANCE 6,392,793 1,073,398 881,314 8,347,505 FUND BALANCE AT BEGINNING OF YEAR 20,982,816 3,060,014 4,334,938 28,377,768 FUND BALANCE AT END OF YEAR $ 27,375,609 $ 4,133,412 $ 5,216,252 $ 36,725,273 See notes to the financial statements. 19  CITY OF FORT WALTON BEACH, FLORIDA GOVERNMENTAL FUNDS RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE TO THE STATEMENT OF ACTIVITIES FOR THE YEAR ENDED SEPTEMBER 30, 2021 Net change in fund balance – governmental funds (page 19) $ 8,347,505 Amounts reported for governmental activities in the statement of activities are different because: Governmental funds do not report capital assets on the balance sheet; however, they are reported in the government-wide financial statements. Governmental funds report capital outlays as expenditures; however, in the statement of activities, the cost of those assets is depreciated/amortized over the estimated useful lives of the assets. Expenditures for capital assets 2,823,402 Less current year depreciation/amortization (3,196,730) (373,328) Governmental funds do not report capital assets on the balance sheet; however, they are reported in the government-wide financial statements. Accordingly, proceeds received for disposals of capital assets are shown as income in the governmental financial statements and a gain or loss is reported in the statement of activities. In addition, capital asset reassignments are reported as transfers on the statement of activities. Disposals of capital assets (674,352) Accumulated depreciation/amortization – disposals 663,586 Acquisition value of donated capital assets 34,500 Accumulated depreciation/amortization – transfers and adjustments 42 23,776 Special assessment revenue in the governmental funds is recognized when due; however, the revenue was recognized in the statement of activities when it was earned (when levied). Payments received from special assessments (25,052) Special assessment for interest and penalties 1,490 Payments received on receivable related to the sale of capital assets (48,910) (72,472) The issuance of long-term debt provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net position. Also, governmental funds report the effect of issuance costs, premiums, discounts and similar items when debt is first issued, whereas these amounts are deferred and amortized in the statement of activities. In addition, long- term debt reassignments are reported as transfers on the statement of activities. Proceeds from issuance of long-term debt (2,499,320) Debt principal and capital lease payments 1,203,619 Change in accrued interest on long-term debt 8,035 (1,287,666) Some expenses reported in the statement of activities do not require the use of current financial resources and therefore are not reported as expenditures in governmental funds: Change in net pension liability and related deferred inflows and deferred outflows of resources 410,081 Change in other post-employment benefits liability and related deferred inflows and deferred outflows of resources