Fort Walton Beach — Fiscal Year 2022-23 Adopted Budget — reading text

finance long-term, non-recurring capital improvements: • Recurrent capital expenditures for replacement, expansion and/or acquisition of plant, equipment, and/or motor vehicles will be financed on a pay-as-you-go basis from funds available and appropriated in the City’s annual operating budget. • Only long-term, non-recurrent capital expenditures for public improvements having a relatively greater cost and longer useful life, and which require additional funding over and beyond the fiscal capacity of the City’s annual operating budget, will be financed through the issuance or creation of long-term debt. These expenditures will not be debt-financed for periods exceeding the projected useful life of the improvement. • All capital improvements financed through the use of long-term debt will be consistent with the adopted Capital Improvements Program and the current fiscal year’s adopted Budget. • Revenue sources that will be used to pay long-term debt will be conservatively projected to ensure that such debt is adequately and soundly financed. • The City’s total general obligation debt will not exceed 10% of its assessed valuation. The City does not currently have any general obligation debt. City of Fort Walton Beach, FL 23 • The City will use special assessment revenue bonds or other self-supporting bonds where possible and appropriate to finance long-term, non-recurrent capital improvements, rather than general obligation bonds. • The City will establish and maintain effective communications with bond rating agencies to keep them informed of its financial condition. Debt Capacity – The debt capacity of both the General Fund and Utilities Fund is contingent upon available resources and existing debt. The current outstanding debt requires a coverage ratio of 1.15-time earnings. The General Fund is at 12.90 and the Utilities Fund is at 2.06. The Sanitation and Stormwater funds are participating in the facilities consolidation, which is the first debt incurred in these funds. Debt Ratio – Indicates the percentage of assets financed via debt, and therefore the financial flexibility of the fund. Debt Ratio Analysis Actual Budget FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 General Fund 101.5% 92.4% 71.7% 43.7% 39.2% Utilities Fund 47.2% 44.4% 42.5% 76.4% 66.5% Sanitation Fund 0.0% 0.0% 0.0% 42.1% 37.9% Stormwater Fund 0.0% 0.0% 0.0% 53.2% 48.0% Debt Rating – The City maintains an AA rating with both Standard and Poor’s and Fitch. Principal Interest Total FY 2022-23 Budget Debt Impact 3,016,016 1,035,034 4,051,050 City of Fort Walton Beach, FL 24  Debt Principal and Interest Payments by Fund General Fund Enterprise Funds Total Fiscal Yr Principal Interest Principal Interest Principal Interest 2022-23 1,414,621.90 272,485.08 1,601,394.56 762,548.60 3,016,016.46 1,035,033.68 2023-24 1,329,490.56 241,798.45 1,643,815.99 719,994.37 2,973,306.55 961,792.82 2024-25 1,073,527.89 214,371.51 1,776,051.51 676,217.25 2,849,579.40 890,588.76 2025-26 1,092,055.07 189,263.54 1,824,535.79 627,782.57 2,916,590.86 817,046.11 2026-27 804,505.59 165,906.27 1,874,017.52 577,912.43 2,678,523.11 743,818.70 2027-28 3,349,488.36 144,599.14 1,925,529.48 526,574.08 5,275,017.84 671,173.22 2028-29 358,306.30 54,830.28 1,979,105.54 473,704.42 2,337,411.84 528,534.70 2029-30 377,618.05 45,519.13 2,121,780.84 419,239.13 2,499,398.89 464,758.26 2030-31 385,832.70 35,554.54 2,182,000.43 359,762.32 2,567,833.13 395,316.86 2031-32 90,148.01 25,351.99 2,242,523.76 298,456.19 2,332,671.77 323,808.18 2032-33 93,600.68 21,899.32 2,306,394.79 235,305.96 2,399,995.47 257,205.28 2033-34 97,185.58 18,314.42 1,707,659.07 170,207.70 1,804,844.65 188,522.12 2034-35 100,907.79 14,592.21 1,283,680.47 122,503.05 1,384,588.26 137,095.26 2035-36 104,772.56 10,727.44 847,705.26 86,794.74 952,477.82 97,522.18 2036-37 108,785.35 6,714.65 880,172.37 54,327.63 988,957.72 61,042.28 2037-38 66,531.90 2,548.17 538,303.58 20,617.03 604,835.48 23,165.20 10,847,378.28 1,464,476.15 26,734,670.97 6,131,947.46 37,582,049.25 7,596,423.61 DEBT SCHEDULES Facility & Infrastructure Debt Service by Fiscal Year Fund 001, 401, 403 Fund 401 Fund 401 Fund 001 Fund 001 Fund 001 & 405 2015 2013 2013 2013A 2023 GRAND TOTAL SRF Loan Revenue Note Revenue Note Revenue Note Revenue Note Revenue Note Recreation Preston Hood Pump Station & Utility System Municipal Fiscal Yr Municipal Facilities Complex & Athletic Complex Force Main Improvements Facilities Equipment Expansion 2022-23 943,366.76 664,076.40 850,000.00 923,598.85 557,524.58 592,000.00 4,530,566.59 2023-24 943,366.76 663,943.60 850,000.00 307,637.08 557,525.26 3,322,472.70 2024-25 943,366.76 663,402.00 950,000.00 305,137.44 557,524.76 3,419,430.96 2025-26 943,366.76 663,451.60 950,000.00 307,136.60 557,524.98 3,421,479.94 2026-27 943,366.76 663,063.20 949,999.99 308,387.28 557,524.58 3,422,341.81 2027-28 943,366.76 663,236.80 950,000.00 308,887.50 3,080,700.00 5,946,191.06 2028-29 943,366.76 663,943.20 950,000.00 308,636.58 2,865,946.54 2029-30 943,366.76 663,153.20 1,050,000.01 307,637.18 2,964,157.15 2030-31 943,366.76 663,896.00 1,049,999.99 305,887.24 2,963,149.99 2031-32 943,366.76 663,113.20 1,049,999.99 2,656,479.95 2032-33 943,366.76 663,834.00 1,049,999.99 2,657,200.75 2033-34 943,366.76 1,050,000.01 1,993,366.77 2034-35 471,683.52 1,050,000.00 1,521,683.52 2035-36 1,050,000.00 1,050,000.00 2036-37 1,050,000.00 1,050,000.00 2037-38 628,000.68 628,000.68 Total $ 11,792,084.64 $ 7,299,113.20 $ 15,478,000.66 $ 3,382,945.75 $ 5,868,324.16 $ 592,000.00 $ 44,412,468.41 City of Fort Walton Beach, FL 25  Equipment Debt Service by Fiscal Year Fund 001 Fund 001 Fund 001 Fund 001 2022 2014 2015 Capital 2022 Fiscal Year Revenue Note Interfund Loan Lease Revenue Note GRAND TOTAL Golf Irrigation Fire Ladder Truck Fire Pumper Fitness Equipment Equipment 2022-23 341,464.68 55,663.00 17,160.96 312,156.72 414,288.64 2023-24 227,643.09 55,665.90 17,160.96 312,156.72 300,469.95 2024-25 - - 8,580.48 312,156.72 8,580.48 2025-26 - - - 312,157.03 Total $ 569,107.77 $ 111,328.90 $ 42,902.40 $ 1,248,627.19 $ 723,339.07