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

981,327 2,366,872 1,544,133 Total pension liability – beginning 35,603,888 34,174,769 31,894,238 29,511,079 28,063,048 26,226,778 24,087,817 23,106,490 20,739,618 19,195,485 Total pension liability – ending (a) 37,235,076 35,603,888 34,174,769 31,894,238 29,511,079 28,063,048 26,226,778 24,087,817 23,106,490 20,739,618 Plan Fiduciary Net Position Contributions – employer $ 1,630,438 $ 1,431,211 $ 1,390,710 $ 1,390,526 $ 1,231,466 $ 1,016,560 $ 1,089,746 $ 794,144 $ 744,019 $ 672,369 Contributions – state 333,611 339,159 256,006 235,435 209,723 219,901 195,017 204,568 201,904 205,007 Contributions – member 243,145 249,844 233,380 226,099 204,865 189,154 182,127 173,480 164,876 150,357 Contributions – buy back - 13,921 22,695 - - - - 32,155 - 72,413 Net investment income 4,748,767 2,141,044 (3,520,580) 3,874,693 1,922,011 564,309 1,430,717 1,401,324 969,107 15,563 Benefit payments, including refunds of employee contributions (1,745,932) (1,709,241) (1,633,458) (1,536,000) (1,459,394) (1,407,554) (1,318,156) (1,434,474) (1,237,389) (1,140,432) Administrative expenses (80,823) (85,891) (64,300) (44,086) (55,253) (66,388) (67,773) (28,449) (43,625) (47,088) Net change in plan fiduciary net position 5,129,206 2,380,047 (3,315,547) 4,146,667 2,053,418 515,982 1,511,678 1,142,748 798,892 (71,811) Plan fiduciary net position – beginning 22,824,393 20,444,346 23,759,893 19,613,226 17,559,808 17,043,826 15,532,148 14,389,400 13,590,508 13,662,319 Plan fiduciary net position – ending (b) 27,953,599 22,824,393 20,444,346 23,759,893 19,613,226 17,559,808 17,043,826 15,532,148 14,389,400 13,590,508 Net pension liability – ending (a) – (b) $ 9,281,477 $ 12,779,495 $ 13,730,423 $ 8,134,345 $ 9,897,853 $ 10,503,240 $ 9,182,952 $ 8,555,669 $ 8,717,090 $ 7,149,110 Plan fiduciary net position as a percentage of the total pension liability 75.07% 64.11% 59.82% 74.50% 66.46% 62.57% 64.99% 64.48% 62.27% 65.53% Covered payroll $ 3,039,311 $ 3,123,046 $ 2,917,251 $ 2,826,544 $ 2,560,508 $ 2,364,429 $ 2,276,592 $ 2,168,503 $ 2,060,954 $ 2,072,260 Net pension liability as a percentage of covered payroll 305.38% 409.20% 470.66% 287.78% 386.56% 444.22% 403.36% 394.54% 422.96% 344.99% See notes to schedule on the next page. 85  CITY OF FORT WALTON BEACH, FLORIDA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS (UNAUDITED) – CONTINUED FIREFIGHTERS’ RETIREMENT FUND Notes: 1 The investment rate of return assumption was lowered from 7.20% to 7.00% for the 2022 reporting date. The investment rate of return assumption was lowered from 7.40% to 7.20% for the 2021 reporting date. As a result of Chapter 2015-157, Laws of Florida, the assumed rates of mortality were changed to the assumptions used by the Florida Retirement System in its July 1, 2021, actuarial valuation for special risk lives, with appropriate risk and collar adjustments made based on plan demographics. 2 Effective July 1, 2019, Chapter 118.1816, Florida Statutes states that a death or disability for a firefighter due to the diagnosis of cancer or circumstances that arise out of the treatment of cancer will be treated as duty-related. 86  CITY OF FORT WALTON BEACH, FLORIDA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF CHANGES IN TOTAL OPEB LIABILITY AND RELATED RATIOS (UNAUDITED) FORT WALTON BEACH RETIREE HEALTH CARE PLAN Reporting Date * 2025 2024 2023 2022 2021 2020 2019 2018 2017 Total OPEB Liability Service cost $ 270,609 $ 263,908 $ 399,330 $ 410,684 $ 230,648 $ 190,791 $ 91,714 $ 105,139 $ 85,100 Interest 247,233 231,897 176,997 155,984 228,430 235,597 205,213 187,954 195,814 Differences between expected and actual experience (656,654) - (978,450) - (1,195,507) - (494,909) - - 1 Changes of assumptions 235,921 (65,573) (1,661,244) (334,427) 1,699,860 519,859 288,811 (639,051) 702,672 Benefit payments (229,736) (214,206) (233,797) (218,502) (250,893) (232,308) (151,409) (139,227) (139,227) Net change in total OPEB liability (132,627) 216,026 (2,297,164) 13,739 712,538 713,939 (60,580) (485,185) 844,359 Total OPEB liability - beginning 4,919,554 4,703,528 7,000,692 6,986,953 6,274,415 5,560,476 5,621,056 6,106,241 5,261,882 Total OPEB liability - ending (a) 4,786,927 4,919,554 4,703,528 7,000,692 6,986,953 6,274,415 5,560,476 5,621,056 6,106,241 Plan Fiduciary Net Position Contributions - employer 232,826 224,306 236,797 228,302 253,893 242,108 154,409 148,727 141,727 3 Benefit payments (229,736) (214,206) (233,797) (218,502) (250,893) (232,308) (151,409) (139,227) (139,227) Administrative expenses (3,090) (10,100) (3,000) (9,800) (3,000) (9,800) (3,000) (9,500) (2,500) Net change in plan fiduciary net position - - - - - - - - - Plan fiduciary net position - beginning - - - - - - - - - Plan fiduciary net position - ending (b) - - - - - - - - - City's total OPEB liability - ending (a) - (b) $ 4,786,927 $ 4,919,554 $ 4,703,528 $ 7,000,692 $ 6,986,953 $ 6,274,415 $ 5,560,476 $ 5,621,056 $ 6,106,241 Plan fiduciary net position as a percentage of total OPEB liability ** 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Covered-employee payroll (projected) $ 15,504,186 $ 14,407,454 $ 13,747,571 $ 12,653,509 $ 12,085,491 $ 11,392,366 $ 10,891,364 $ 7,927,323 $ 7,520,263 City's total OPEB liability as a percentage of covered-employee payroll 30.88% 34.15% 34.21% 55.33% 57.81% 55.08% 51.05% 70.91% 81.20% * This schedule is intended to show information for ten years. Additional years will be displayed as they become available. ** There are no OPEB plan assets accumulated in a GASB compliant trust to pay for related plan benefits. Notes: 1 As a result of Chapter 2015-157, Laws of Florida, the assumed rates of mortality were changed to the assumptions used by the Florida Retirement System to match the pension plan assumptions. Changes of assumptions and other inputs also reflect the changes in the discount rate each period. The following are the discount rates used in each period: 2025: 4.06% 2022: 2.43% 2019: 4.18% 2024: 4.87% 2021: 2.14% 2018: 3.64% 2023: 4.77% 2020: 3.58% 2017: 3.06% In addition, there were changes to actuarial assumptions for updated health care costs and premiums, health care trend rates, mortality rates, retirement rates, and disability rates. 87  CITY OF FORT WALTON BEACH, FLORIDA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PENSION CONTRIBUTIONS (UNAUDITED) LAST TEN FISCAL YEARS Reporting Year 2025 2024 2023 2022 2021 2020 2019 2018 2017 2016 General Employees' Retirement Fund Actuarially determined contribution $ 228,642 $ 242,563 $ 289,455 $ 580,847 $