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

Restricted assets Cash and cash equivalents 7,509,746 1,070,596 8,580,342 Net pension asset 1,706,567 1,163,735 2,870,302 Other assets Other receivables 3,468,728 3,732 3,472,460 Capital assets Non-depreciable/amortizable 18,431,301 946,925 19,378,226 Depreciable/amortizable, net 41,616,088 35,554,613 77,170,701 TOTAL ASSETS 107,288,821 53,259,030 160,547,851 DEFERRED OUTFLOWS OF RESOURCES 6,206,037 301,068 6,507,105 LIABILITIES Accounts payable 1,221,771 694,102 1,915,873 Accrued liabilities 1,203,433 214,081 1,417,514 Due to other governments 20,995 13,440 34,435 Unearned revenues 37,891 52,974 90,865 Accrued interest 174,483 53,503 227,986 Payable from restricted assets Customer deposits - 440,357 440,357 Non-current liabilities Due within one year Compensated absences 569,429 123,158 692,587 Lease obligations payable 156,282 35,010 191,292 Subscription liabilities 808,970 38,211 847,181 Financing contracts payable 119,854 - 119,854 Revenue bonds and notes payable 1,597,604 527,000 2,124,604 State revolving fund loans payable - 791,988 791,988 Due in more than one year Compensated absences 1,708,288 369,472 2,077,760 Lease obligations payable 437,791 807 438,598 Subscription liabilities 996,016 141,627 1,137,643 Financing contracts payable 261,020 - 261,020 Revenue bonds and notes payable 14,308,164 4,146,000 18,454,164 State revolving fund loans payable - 7,372,392 7,372,392 Total OPEB liability 3,774,911 1,012,016 4,786,927 Net pension liability 13,160,824 - 13,160,824 TOTAL LIABILITIES 40,557,726 16,026,138 56,583,864 DEFERRED INFLOWS OF RESOURCES 10,017,532 1,493,998 11,511,530 NET POSITION Net investment in capital assets 40,721,488 23,383,823 64,105,311 Restricted Debt service - 157,228 157,228 System improvements - 473,011 473,011 Pension benefits 268,637 183,187 451,824 Redevelopment projects 5,171,206 - 5,171,206 Public safety 1,855,189 - 1,855,189 Other purposes 7,509,746 - 7,509,746 Unrestricted 7,393,334 11,842,713 19,236,047 TOTAL NET POSITION $ 62,919,600 $ 36,039,962 $ 98,959,562 See notes to the financial statements. 15  CITY OF FORT WALTON BEACH, FLORIDA STATEMENT OF ACTIVITIES FOR THE YEAR ENDED SEPTEMBER 30, 2025 Net (Expense) Revenue and Changes in Net Position Program Revenues Primary Government Charges for Operating Grants Capital Grants and Governmental Business-Type Function/program activities Expenses Services and Contributions Contributions Activities Activities Total Governmental activities General government $ 6,893,053 $ 699,179 $ 12,390 $ - $ (6,181,484) $ - $ (6,181,484) Public safety 16,698,910 900,575 860,931 243,432 (14,693,972) - (14,693,972) Physical environment 401,575 453,875 - - 52,300 - 52,300 Transportation 1,004,089 202,017 21,200 - (780,872) - (780,872) Economic environment 1,275,342 51,201 121,027 - (1,103,114) - (1,103,114) Culture and recreation 6,726,220 3,133,432 223,561 - (3,369,227) - (3,369,227) Debt service interest 668,906 - - - (668,906) - (668,906) Total governmental activities 33,668,095 5,440,279 1,239,109 243,432 (26,745,275) - (26,745,275) Business-type activities Utilities 11,080,697 12,484,176 - 855,587 - 2,259,066 2,259,066 Sanitation 4,745,877 5,433,078 - - - 687,201 687,201 Stormwater 1,048,423 1,053,819 - 227,108 - 232,504 232,504 Total business-type activities 16,874,997 18,971,073 - 1,082,695 - 3,178,771 3,178,771 Total primary government $ 50,543,092 $ 24,411,352 $ 1,239,109 $ 1,326,127 (26,745,275) 3,178,771 (23,566,504) General revenues Taxes Property taxes 7,693,921 - 7,693,921 Sales taxes 5,934,715 - 5,934,715 Utility service taxes 4,716,511 - 4,716,511 Tax increments for redevelopment districts 2,887,289 - 2,887,289 Franchise fees 2,387,255 - 2,387,255 Intergovernmental, unrestricted 1,719,563 - 1,719,563 Gain on sale of assets 586,414 10,479 596,893 Miscellaneous 35,815 2,387 38,202 Interest and investment earnings 2,167,478 670,706 2,838,184 Transfers 1,985,575 (1,985,575) - Total general revenues and transfers 30,114,536 (1,302,003) 28,812,533 CHANGE IN NET POSITION 3,369,261 1,876,768 5,246,029 NET POSITION AT BEGINNING OF YEAR - AS PREVIOUSLY REPORTED 60,770,051 34,399,434 95,169,485 RESTATEMENT - CHANGE IN ACCOUNTING PRINCIPLE (1,219,712) (236,240) (1,455,952) NET POSITION AT END OF YEAR $ 62,919,600 $ 36,039,962 $ 98,959,562 See notes to the financial statements. 16  CITY OF FORT WALTON BEACH, FLORIDA GOVERNMENTAL FUNDS BALANCE SHEET SEPTEMBER 30, 2025 Community Beal Memorial Other Total Redevelopment Cemetery Governmental Governmental General Agency Perpetual Care Funds Funds ASSETS Cash and cash equivalents $ 1,994,811 $ 452,118 $ 201,380 $ 1,997,896 $ 4,646,205 Investments 18,981,138 2,976,659 4,998,435 - 26,956,232 Receivables 3,928,583 641 - - 3,929,224 Due from other funds 14,899 - - - 14,899 Due from other governments 104,957 1,824,380 - 7,895