Fort Walton Beach — Annual Comprehensive Financial Report, September 30, 2025 — reading text

(18,906) 10,479 - (8,427) Investment earnings 100,873 25,559 5,825 132,257 Interest income 370,486 126,714 41,249 538,449 Grants in aid (398) - - (398) Miscellaneous (68) 2,455 - 2,387 Total non-operating revenues (expenses) 155,708 165,207 45,381 366,296 INCOME BEFORE CAPITAL CONTRIBUTIONS AND TRANSFERS 1,874,770 852,408 52,470 2,779,648 CAPITAL CONTRIBUTIONS AND TRANSFERS Capital grants and contributions 770,493 - 227,108 997,601 Impact fees 85,094 - - 85,094 Transfers out (1,338,201) (427,937) (219,437) (1,985,575) Total capital contributions and transfers (482,614) (427,937) 7,671 (902,880) CHANGE IN NET POSITION 1,392,156 424,471 60,141 1,876,768 NET POSITION AS PREVIOUSLY REPORTED 26,154,609 4,139,061 4,105,764 34,399,434 Restatement - Change in Accounting Principle (103,828) (115,951) (16,461) (236,240) Net Position at Beginning of Year 26,050,781 4,023,110 4,089,303 34,163,194 NET POSITION AT END OF YEAR $ 27,442,937 $ 4,447,581 $ 4,149,444 $ 36,039,962 See notes to the financial statements. 23  CITY OF FORT WALTON BEACH, FLORIDA PROPRIETARY FUNDS STATEMENT OF CASH FLOWS FOR THE YEAR ENDED SEPTEMBER 30, 2025 Sanitation Stormwater Utilities Fund Fund Fund Total CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers and users $ 12,587,990 $ 5,454,822 $ 1,060,176 $ 19,102,988 Payments to vendors and suppliers (6,739,205) (3,088,097) (357,134) (10,184,436) Payments to employees (2,476,507) (1,422,247) (376,584) (4,275,338) Miscellaneous income 22,618 2,455 - 25,073 Net cash provided by operating activities 3,394,896 946,933 326,458 4,668,287 CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES Interfund activity 2,388,193 - - 2,388,193 Grants in aid (398) - - (398) Transfers out (1,338,201) (427,937) (219,437) (1,985,575) Net cash provided by (used in) non-capital financing activities 1,049,594 (427,937) (219,437) 402,220 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Impact fee receipts 85,094 - - 85,094 Acquisitions of capital assets (2,488,577) (614,332) (673,222) (3,776,131) Proceeds from sale of capital assets 6,835 10,479 - 17,314 Proceeds from capital contributions 1,849 - - 1,849 Principal paid on long-term debt (1,377,070) - (43,322) (1,420,392) Interest paid on long-term debt (318,936) - (1,693) (320,629) Net cash used in capital and related financing activities (4,090,805) (603,853) (718,237) (5,412,895) CASH FLOWS FROM INVESTING ACTIVITIES Purchases of investments (369,344) (113,123) (24,375) (506,842) Interest and dividends 370,486 126,714 41,249 538,449 Net cash provided by investing activities 1,142 13,591 16,874 31,607 NET CHANGE IN CASH AND CASH EQUIVALENTS 354,827 (71,266) (594,342) (310,781) CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 951,951 469,769 679,649 2,101,369 CASH AND CASH EQUIVALENTS AT END OF YEAR $ 1,306,778 $ 398,503 $ 85,307 $ 1,790,588 See notes to the financial statements. 24  CITY OF FORT WALTON BEACH, FLORIDA PROPRIETARY FUNDS STATEMENT OF CASH FLOWS – CONTINUED FOR THE YEAR ENDED SEPTEMBER 30, 2025 Sanitation Stormwater Utilities Fund Fund Fund Total CASH AND CASH EQUIVALENTS AT END OF YEAR CONSIST OF Cash and cash equivalents $ 241,662 $ 393,023 $ 85,307 $ 719,992 Retricted cash and cash equivalents 1,065,116 5,480 - 1,070,596 Total cash and cash equivalents $ 1,306,778 $ 398,503 $ 85,307 $ 1,790,588 RECONCILIATION OF OPERATING INCOME TO NET CASH FLOWS FROM OPERATING ACTIVITIES Operating income $ 1,719,062 $ 687,201 $ 7,089 $ 2,413,352 Adjustments to reconcile operating income to net cash flows from operating activities: Depreciation 1,969,232 269,996 229,066 2,468,294 Bad debt 70,824 27,338 5,122 103,284 Other income 22,618 2,455 - 25,073 Decrease (increase) in assets: Accounts receivable (6,903) (5,594) 1,235 (11,262) Inventory 572 - - 572 Other receivables 48 - - 48 Net pension asset (1,412,735) (1,079,711) (155,019) (2,647,465) Increase (decrease) in liabilities: Accounts payable (478,325) 11,082 76,273 (390,970) Compensated absences payable 34,652 (22,784) 8,872 20,740 Accrued wages 21,019 (9,367) 2,257 13,909 Due to other governments - 1,441 - 1,441 Customer deposits 73,693 - - 73,693 Unearned revenue (11,162) - - (11,162) Total OPEB liability (14,541) (9,684) (3,814) (28,039) Net change in deferred outflows/inflows - pension 1,400,257 1,070,175 153,650 2,624,082 Net change in deferred outflows/inflows - OPEB 6,585 4,385 1,727 12,697 Net cash flows from operating activities $ 3,394,896 $ 946,933 $ 326,458 $ 4,668,287 SCHEDULE OF NONCASH INVESTING AND FINANCING ACTIVITES Assets acquired through SBITA's $ 244,428 $ - $ - $ 244,428 Gain (loss) on disposal of capital assets $ (18,906) $ 10,479 $ - $ (8,427) Change in fair value of investments $ 100,873 $ 25,559 $ 5,825 $ 132,257 Capital grants receivable $ 768,644 $ - $ 287,500 $ 1,056,144 Accrued capital-related payables $ 41,360 $ - $ 66,821 $ 108,181 SUPPLEMENTAL DISCLOSURES OF NONCASH TRANSACTIONS Amortization of deferred loss on refunding $ 5,613 $ - $ - $ 5,613 See notes to the financial statements. 25  CITY OF FORT WALTON BEACH, FLORIDA FIDUCIARY FUNDS STATEMENT OF FIDUCIARY NET POSITION SEPTEMBER 30, 2025 Pension Trust Funds ASSETS Investments, at fair value U.S. Government and Agency obligations $ 10,486,442 Corporate obligations 647,438 Corporate equity 2,431,367 Mutual funds and exchange-traded funds 95,902,276 Infrastructure investment funds 7,518,553 Real estate investment funds 8,871,543 Total investments 125,857,619 Accounts receivable 94,958 TOTAL ASSETS 125,960,365 LIABILITIES Accounts payable 360,594 NET POSITION RESTRICTED FOR PENSIONS $ 125,599,771 See notes to the financial statements. 26  CITY OF FORT WALTON BEACH,