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

100% of active members are assumed to be married, with husbands 3 years older than wives. Salary increases: Service Years Assumption Less than 1 10.0% 1-4 6.5% 5-9 6.0% 10-14 5.5% 15-19 4.5% 20+ 3.5% In addition to the table on the previous page, projected salary at retirement is increased 20.0% to account for non-regular compensation. Disability rate: % Becoming Disabled During the Age Year 20 0.28% 25 0.30% 30 0.36% 35 0.46% 40 0.60% 45 1.02% 50 2.00% 55 3.10% 60 4.18% It is assumed that 75% of disablements are service-related. Termination rate: Service Years Termination Probability Less than 2 15.0% 2-4 12.0% 5-6 10.0% 7-9 2.0% 10 8.0% 11 7.5% 12 7.0% 13 6.5% 14-19 6.0% 20+ 2.0% 93  CITY OF FORT WALTON BEACH, FLORIDA REQUIRED SUPPLEMENTARY INFORMATION NOTES TO THE SCHEDULE OF PENSION CONTRIBUTIONS (UNAUDITED) FIREFIGHTERS’ RETIREMENT FUND Valuation Date: October 1, 2023 Notes: Actuarially determined contribution rates are calculated as of October 1, which is two years prior to the end of the fiscal year in which contributions are reported. Methods and Assumptions Used to Determine Contribution Rates: Actuarial cost method: Entry Age Normal Actuarial Cost Method Mortality rates: Projected generationally with Scale MP-2018 Healthy lives: Female: PubS.H-2010 (Below Median) for Employees,set forward one year. Male: PubS.H-2010 (Below Median) for Employees,set forward one year Disabled lives: Female: 80% PubG.H-2010 for Disabled Retirees / 20% PubS.H-2010 for Disabled Retirees Male: 80% PubG.H-2010 for Disabled Retirees / 20% PubS.H-2010 for Disabled Retirees Interest rate: 7.00% per year compounded annually, net of investment related expenses Disability rate: See table below; it is assumed that 75% of disablements and active Member deaths are service related. Termination rate: See table below; assumed rates were approved in conjunction with an actuarial experience study dated June 2022. Salary increases: See table below; assumed rates were approved in conjunction with an actuarial experience study dated June 2022. Cost-of-living increase: 3.00% per year beginning at age 58 Payroll growth: 1.49% per year, in compliance with Part VII of Chapter 112, Florida Statutes Actuarial asset All assets are valued at fair value with an adjustment made to uniformly spread method: actuarial investment gains and losses (as measured by actual fair value investment return against expected fair value investment return) over a five-year period. Salary increases: Service Years Increase 0 14.00% 1-9 6.00% 10-14 5.50% 15+ 4.75% 94  CITY OF FORT WALTON BEACH, FLORIDA REQUIRED SUPPLEMENTARY INFORMATION NOTES TO THE SCHEDULE OF PENSION CONTRIBUTIONS (UNAUDITED) – CONTINUED FIREFIGHTERS’ RETIREMENT FUND Disability rate: Age Disability Rate 20 0.14% 25 0.15% 30 0.18% 35 0.23% 40 0.30% 45 0.51% 50 1.00% 55 1.55% 60+ 2.09% Termination rate: Service Years Termination Rate 0-2 12.00% 3-9 9.00% 10+ 3.00% Retirement age: Member Age Retirement Probability 45 - 54 3.00% 55+ 100.00% In addition to the above table, 100% are assumed to retire upon completion of 25 years of service. The assumed rates in this table were approved in conjunction with an actuarial experience study dated June 2022. 95  CITY OF FORT WALTON BEACH, FLORIDA COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES NONMAJOR GOVERNMENTAL FUNDS SEPTEMBER 30, 2025 Special Revenue Funds – used to account for and report the proceeds of specific revenue sources that are restricted or committed to expenditure for specified purposes other than debt service or capital projects. Law Enforcement Trust Fund This fund is used to account for the revenues received from grants or forfeitures that are legally restricted for specific purposes, such as crime prevention, community policing, and drug education. Funds cannot be used for normal operating expenditures. Law Enforcement Trust Training Fund This fund is used to account for the revenues received from traffic fines that are legally restricted for specific purposes, such as school crossing guards and police officer training. Florida Building Code Fund This fund is used to account for the revenues from building permits and inspections, which are legally restricted for enforcing the Florida Building Code, as defined by State statutes. Community Development Block Grant Fund This fund is used to account for grant funds from the U.S. Department of Housing and Urban Development that are legally restricted for specific purposes, primarily assistance to benefit low- and moderate-income families.  CITY OF FORT WALTON BEACH, FLORIDA NON-MAJOR GOVERNMENTAL FUNDS COMBINING BALANCE SHEET SEPTEMBER 30, 2025 Special Revenue Funds Law Total Law Enforcement Florida Community Nonmajor Enforcement Trust Building Development Governmental Trust Training Code Block Grant Funds ASSETS Cash and cash equivalents $ 282,286 $ 40,867 $ 1,674,743 $ - $ 1,997,896 Due from other governments 1,778 - - 6,117 7,895 TOTAL ASSETS $ 284,064 $ 40,867 $ 1,674,743 $ 6,117 $ 2,005,791 LIABILITIES Accounts payable $ - $ - $ 6,656 $ - $ 6,656 Accrued liabilities 111,143 - 26,686 - 137,829 Due to other funds - - - 14,899 14,899 Total liabilities 111,143 - 33,342 14,899 159,384 FUND BALANCE Restricted 172,921 40,867 1,641,401 - 1,855,189 Unassigned - - - (8,782) (8,782) Total fund balance 172,921 40,867 1,641,401 (8,782) 1,846,407 TOTAL LIABILITIES AND FUND BALANCE $ 284,064 $ 40,867 $ 1,674,743 $ 6,117 $ 2,005,791 96  CITY OF FORT WALTON BEACH, FLORIDA NON-MAJOR GOVERNMENTAL FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE FOR THE YEAR ENDED SEPTEMBER 30, 2025 Special Revenue Funds (Formerly Law Non-Major) Total Law Enforcement Florida Community Beal Memorial Nonmajor Enforcement Trust Building Development Cemetery Governmental Trust Training Code Block Grant Perpetual Care Funds REVENUES Permits and fees $ - $ - $ 631,908 $ - $ - $ 631,908 Intergovernmental 1,778 - - 121,027 - 122,805 Fines 17,533 3,651 - - - 21,184 Miscellaneous 7,573 1,179 48,865 -