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

Variance with Final Budget - Budgeted Amounts Positive Original Final Actual (Negative) REVENUES Taxes $ 1,530,199 $ 1,530,199 $ 1,530,199 $ - Intergovernmental 1,354,347 1,354,347 1,357,090 2,743 Investment income - - 47,478 47,478 Miscellaneous - - 152,116 152,116 Total revenues 2,884,546 2,884,546 3,086,883 202,337 EXPENDITURES Current Public safety 427,826 427,826 424,586 3,240 Economic environment 1,326,978 1,326,978 933,083 393,895 Capital outlay 3,528,605 8,246,393 2,411,307 5,835,086 Debt service - - 14,060 (14,060) Total expenditures 5,283,409 10,001,197 3,783,036 6,218,161 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES (2,398,863) (7,116,651) (696,153) 6,420,498 OTHER FINANCING SOURCES Issuance of leases - - 253,251 (253,251) NET CHANGE IN FUND BALANCE (2,398,863) (7,116,651) (442,902) 6,673,749 FUND BALANCE AT BEGINNING OF YEAR 2,398,863 7,116,651 5,232,266 (1,884,385) FUND BALANCE AT END OF YEAR $ - $ - $ 4,789,364 $ 4,789,364 See notes to the required supplementary information. 79  CITY OF FORT WALTON BEACH, FLORIDA REQUIRED SUPPLEMENTARY INFORMATION BEAL MEMORIAL CEMETERY PERPETUAL CARE FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE – BUDGET AND ACTUAL (UNAUDITED) FOR THE YEAR ENDED SEPTEMBER 30, 2025 Variance with Final Budget - Budgeted Amounts Positive Original Final Actual (Negative) REVENUES Investment income $ - $ - $ 506,709 $ 506,709 Miscellaneous 300 300 5,767 5,467 Total revenues 300 300 512,476 512,176 EXPENDITURES Current Physical environment 25,574 25,574 11,804 13,770 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES (25,274) (25,274) 500,672 525,946 OTHER FINANCING SOURCES Transfers in 32,200 32,200 30,248 (1,952) NET CHANGE IN FUND BALANCE 6,926 6,926 530,920 523,994 FUND BALANCE AT BEGINNING OF YEAR - - 4,667,003 4,667,003 FUND BALANCE AT END OF YEAR $ 6,926 $ 6,926 $ 5,197,923 $ 5,190,997 See notes to the required supplementary information. 80  CITY OF FORT WALTON BEACH, FLORIDA REQUIRED SUPPLEMENTARY INFORMATION NOTES TO THE BUDGETARY COMPARISON SCHEDULES SEPTEMBER 30, 2025 Budgetary data reflected in the accompanying schedules of revenues, expenditures, and changes in fund balance – budget and actual are established by the following procedures: Prior to September 1st of each year, proposed budgets are received by the City Council from the City Manager. These proposed expenditures, along with all estimated receipts, taxes to be levied, and balances expected to be brought forward are considered by the City Council. The City Council requires such changes as deemed necessary, sets proposed mileages, and establishes dates for tentative and final public budget hearings as prescribed by Florida Statutes. Proposed budgets are advertised in a newspaper of general circulation in the City. Public hearings are conducted for the purposes of receiving input, responding to complaints, and providing reasons and explanations for intended actions to all citizens participating. Prior to October 1st, the budget for all governmental and proprietary funds of the City is legally enacted through passage of a resolution. Budget amendments are periodically passed via resolutions throughout the fiscal year. Budgeted beginning fund balance in the accompanying financial statements reflects planned utilization of prior years' unassigned fund balance to the level required to accomplish current year objectives. The level of budgetary control (that is the level at which expenditures cannot legally exceed appropriations) has been established at the fund level. The City Manager and Finance Director are authorized to transfer budgeted amounts within departments of a fund and between departments of a fund; however, any revisions that alter the total expenditures of any fund must be approved by the City Council. Budget amounts reflected in the financial statements are originally adopted amounts as amended by action of the City Council by revision of fund totals. All amendments to the originally adopted amounts were made in a legally permissible manner. 81  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 * 2025 2024 2023 2022 2021 2020 2019 2018 2017 2016 Total Pension Liability Service cost $ 245,027 $ 288,828 $ 311,634 $ 330,178 $ 366,197 $ 372,064 $ 446,214 $ 504,055 $ 557,163 $ 569,712 Interest 3,606,688 3,689,920 3,695,597 3,677,931 3,723,744 3,888,510 3,827,379 3,771,606 3,317,396 3,314,990 Differences between expected and actual experience 380,100 (1,541,794) (614,717) 275,286 60,721 (466,270) (265,877) (404,763) 400,221 (1,074,244) 1 Changes of assumptions - - - 1,521,135 618,633 (768,706) - - 4,485,495 - Benefit payments, including refunds of employee contributions (3,644,603) (3,519,769) (3,381,848) (3,366,874) (3,327,697) (3,161,812) (3,157,696) (3,056,444) (2,858,889) (2,676,038) Net change in total pension liability 587,212 (1,082,815) 10,666 2,437,656 1,441,598 (136,214) 850,020 814,454 5,901,386 134,420 Total pension liability – beginning 53,101,382 54,184,197 54,173,531 51,735,875 50,294,277 50,430,491 49,580,471 48,766,017 42,864,631 42,730,211 Total pension liability – ending (a) 53,688,594 53,101,382 54,184,197 54,173,531 51,735,875 50,294,277 50,430,491 49,580,471 48,766,017 42,864,631 Plan Fiduciary Net Position Contributions – employer $ 284,704 $ 314,371 $ 580,847 $ 1,024,247 $ 1,419,339 $ 1,751,654 $ 2,006,925 $ 1,254,097 $ 1,280,082 $ 1,355,041 Contributions – member 100,094 107,036 128,595 136,164 147,885 150,018 158,138 171,869 202,268 209,567 Net investment income 10,432,744 4,095,879 (8,789,933) 10,772,183 4,869,412 1,788,274 4,975,937 4,967,834 4,031,981 (4,390) Benefit payments, including refunds of employee contributions (3,644,603) (3,519,769) (3,381,848) (3,366,874) (3,327,697) (3,161,812) (3,157,696) (3,056,444) (2,858,889) (2,676,038) Administrative expenses (55,871) (50,580) (41,837) (48,305) (50,568) (40,421) (49,518) (42,201) (35,704) (39,535) Net change in plan fiduciary net position 7,117,068 946,937 (11,504,176) 8,517,415 3,058,371 487,713 3,933,786 3,295,155 2,619,738 (1,155,355) Plan fiduciary net position – beginning 49,441,828 48,494,891 59,999,067 51,481,652 48,423,281 47,935,568 44,001,782 40,706,627 38,086,889 39,242,244 Plan fiduciary net position – ending (b) 56,558,896 49,441,828 48,494,891 59,999,067 51,481,652 48,423,281 47,935,568 44,001,782 40,706,627 38,086,889 Net pension liability (asset) – ending (a) – (b) $ (2,870,302) $ 3,659,554 $ 5,689,306 $ (5,825,536) $ 254,223 $ 1,870,996 $ 2,494,923 $ 5,578,689 $ 8,059,390 $ 4,777,742 Plan fiduciary net position as a percentage of the total pension liability 105.35% 93.11% 89.50% 110.75% 99.51% 96.28% 95.05% 88.75% 83.47% 88.85% Covered payroll $ 2,001,875 $ 2,140,710 $ 2,571,886 $ 2,723,263 $ 2,957,684 $ 3,000,359 $ 3,162,762 $ 3,437,375 $ 4,045,350 $ 4,191,304 Net pension liability as a percentage of covered payroll -143.38% 170.95% 221.21% -213.92% 8.60% 62.36% 78.88%