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

1,937,232 Inventory, at cost 556,226 - - - 556,226 Restricted assets Investments 7,509,746 - - - 7,509,746 TOTAL ASSETS $ 33,090,360 $ 5,253,798 $ 5,199,815 $ 2,005,791 $ 45,549,764 LIABILITIES Accounts payable $ 781,172 $ 432,051 $ 1,892 $ 6,656 $ 1,221,771 Accrued liabilities 1,033,221 32,383 - 137,829 1,203,433 Due to other funds - - - 14,899 14,899 Due to other governments 20,995 - - - 20,995 Unearned revenues 37,891 - - - 37,891 Total liabilities 1,873,279 464,434 1,892 159,384 2,498,989 DEFERRED INFLOWS OF RESOURCES 3,357,083 - - - 3,357,083 FUND BALANCE Nonspendable 556,226 - - - 556,226 Restricted 7,509,746 4,789,364 - 1,855,189 14,154,299 Committed 11,214,071 - 5,197,923 - 16,411,994 Assigned 6,030,470 - - - 6,030,470 Unassigned 2,549,485 - - (8,782) 2,540,703 Total fund balance 27,859,998 4,789,364 5,197,923 1,846,407 39,693,692 TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCE $ 33,090,360 $ 5,253,798 $ 5,199,815 $ 2,005,791 $ 45,549,764 See notes to the financial statements. 17  CITY OF FORT WALTON BEACH, FLORIDA GOVERNMENTAL FUNDS RECONCILIATION OF THE BALANCE SHEET TO THE STATEMENT OF NET POSITION SEPTEMBER 30, 2025 Fund balance, total governmental funds (page 17) $ 39,693,692 Amounts reported for governmental activities in the statement of net position are different because: Capital assets used in governmental activities are not financial resources and therefore are not reported in the funds. Governmental non-depreciable/amortizable assets $ 18,431,301 Governmental depreciable/amortizable assets 103,031,795 Less accumulated depreciation/amortization (61,415,707) 60,047,389 Other assets used in governmental activities are not current financial resources and therefore are not reported in the funds. Net pension asset 1,706,567 Unavailable revenues in governmental funds is susceptible to full accrual on the entity-wide statements. Special assessments 35,714 Receivable related to sale of capital assets 313,515 349,229 Deferred inflows of resources and deferred outflows of resources are not available/receivable or due/payable, respectively, in the current period and therefore are not reported in the governmental funds. Deferred outflows of resources related to pension plans 5,591,045 Deferred outflows of resources related to OPEB plan 614,992 Deferred inflows of resources related to pension plans (5,094,324) Deferred inflows of resources related to OPEB plan (1,915,354) (803,641) Long-term liabilities are not due and payable in the current period and therefore are not reported in the governmental funds. Notes payable (15,905,768) Accrued interest (174,483) Lease obligations payable (594,073) Subscription liabilities (1,804,986) Financing contracts payable (380,874) Compensated absences (2,277,717) Total OPEB liability (3,774,911) Net pension liability (13,160,824) (38,073,636) Net position of governmental activities (page 15) $ 62,919,600 See notes to the financial statements. 18  CITY OF FORT WALTON BEACH, FLORIDA GOVERNMENTAL FUNDS STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE FOR THE YEAR ENDED SEPTEMBER 30, 2025 Community Beal Memorial Other Total Redevelopment Cemetery Governmental Governmental General Agency Perpetual Care Funds Funds REVENUES Taxes $ 14,178,604 $ 1,530,199 $ - $ - $ 15,708,803 Permits and fees 2,440,501 - - 631,908 3,072,409 Intergovernmental 7,287,552 1,357,090 - 122,805 8,767,447 Charges for services 3,784,813 - - - 3,784,813 Fines 215,982 - - 21,184 237,166 Investment income 955,643 47,478 506,709 - 1,509,830 Miscellaneous 1,339,941 152,116 5,767 57,617 1,555,441 Total revenues 30,203,036 3,086,883 512,476 833,514 34,635,909 EXPENDITURES Current General government 6,114,022 - - - 6,114,022 Public safety 15,243,357 424,586 - 587,481 16,255,424 Physical environment 309,707 - 11,804 - 321,511 Transportation 517,572 - - - 517,572 Economic environment 20,000 933,083 - 121,027 1,074,110 Culture and recreation 5,282,268 - - - 5,282,268 Capital outlay 7,714,822 2,411,307 - - 10,126,129 Debt service Principal 2,457,508 3,684 - - 2,461,192 Interest 666,292 10,376 - - 676,668 Total expenditures 38,325,548 3,783,036 11,804 708,508 42,828,896 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES (8,122,512) (696,153) 500,672 125,006 (8,192,987) OTHER FINANCING SOURCES (USES) Sale of general capital assets 491,244 - - - 491,244 Issuance of leases and financing contracts 308,843 253,251 - - 562,094 Issuance of subscription liabilities 1,183,284 - - - 1,183,284 Transfers in 1,985,575 - 30,248 - 2,015,823 Transfers out (30,248) - - - (30,248) Total other financing sources (uses) 3,938,698 253,251 30,248 - 4,222,197 NET CHANGE IN FUND BALANCE (4,183,814) (442,902) 530,920 125,006 (3,970,790) FUND BALANCE - AS PREVIOUSLY REPORTED 32,043,812 5,232,266 - 6,388,404 43,664,482 ADJUSTMENT - CHANGE FROM NONMAJOR TO MAJOR FUND - - 4,667,003 (4,667,003) - FUND BALANCE - BEGINNING OF YEAR 32,043,812 5,232,266 4,667,003 1,721,401 43,664,482 FUND BALANCE AT END OF YEAR $ 27,859,998 $ 4,789,364 $ 5,197,923 $ 1,846,407 $ 39,693,692 See notes to the financial statements. 19  CITY OF FORT WALTON BEACH, FLORIDA GOVERNMENTAL FUNDS RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE TO THE STATEMENT OF ACTIVITIES FOR THE YEAR ENDED SEPTEMBER 30, 2025 Net change in fund balance – governmental funds (page 19) $ (3,970,790) Amounts reported for governmental activities in the statement of activities are different because: Governmental funds do not report capital assets on the balance sheet; however, they are reported in the government-wide financial statements. Governmental funds report capital outlays as expenditures; however, in the statement of activities, the cost of those assets is depreciated/amortized over the estimated useful lives of the assets. Expenditures for capital assets $ 10,126,129 Less current year depreciation/amortization (4,662,117)