Fort Walton Beach — Comprehensive Financial Report September 30, 2017 — reading text

CITY OF FORT WALTON BEACH, FLORIDA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017 PREPARED BY: THE FINANCE DEPARTMENT Brandy L. Ferris, Finance Director CITY OF FORT WALTON BEACH 107 MIRACLE STRIP PARKWAY FORT WALTON BEACH, FLORIDA 32548 WWW.FWB.ORG  CITY OF FORT WALTON BEACH, FL City Council Left to right (standing): Mike Holmes, John Mead, Nic Allegretto, David Schmidt and Scott Smith Left to right (seated): Amy Jamieson, Mayor Dick Rynearson and Diane Keller Council members are elected in odd years for four year staggered terms. City Council meets on the second and fourth Tuesday of each month at 6:00 p.m. in the City Council Chambers located at 107 Miracle Strip Parkway, Fort Walton Beach, Florida. Appointed Officers City Manager – Michael Beedie City Clerk – Kim Barnes City Attorney – Hayward Dykes, Jr. Directors Financial Services – Brandy Ferris Fire Services – Ken Perkins Human Resources – Tarey Franxman Police Services – Ed Ryan Public Works – Tim Bolduc Recreation Services – Jeff Peters Utility Services – Daniel Payne  Core Values Rather than being just words found on the website or located at the top of letterhead, these core values are the guiding principles by which City Council, Department Directors, and City Staff will conduct themselves, allocate resources, and prioritize goals and objectives. These principles form a non-negotiable code of conduct and will guide our government on who we hire, how we train, and how we reward. These values will define who we are, what we stand for, and influence policies, procedures, and guidelines. Adopted by City Council in May 2011, after a collaborative effort by Department Directors and the City Manager to consolidate employee suggestions, these five core values represent the first milestone in instituting the City’s new Performance Excellence Program. Integrity We will conduct ourselves in an honest, trustworthy, and ethical manner. Accountability We will take full responsibility for our actions, resources, and attitudes. Teamwork We will work together to provide quality services. Customer Service We will be professional, use all available resources, and strive to meet the needs of our customers. Continual Improvement We will promote a culture that seeks to better our organization. Adopted by City Council in September 2011, after a collaborative effort by Department Directors and the City Manager, the updated Vision and Mission for the City are as follows: Vision The City of Fort Walton Beach: a recognized leader in the provision of Community Services. Mission To enhance and protect the Community by providing quality services.  CITY OF FORT WALTON BEACH, FLORIDA TABLE OF CONTENTS FOR THE YEAR ENDED SEPTEMBER 30, 2017 Page CITY OFFICIALS I. INTRODUCTORY SECTION Table of Contents i Letter of Transmittal City Manager and Finance Director iv GFOA Certificate of Achievement xi Organizational Chart xii II. FINANCIAL SECTION Independent Auditors’ Report 1 A. MANAGEMENT’S DISCUSSION AND ANALYSIS 4 B. BASIC FINANCIAL STATEMENTS Government-Wide Financial Statements Statement of Net Position 15 Statement of Activities 16 Fund Financial Statements Governmental Funds Balance Sheet 17 Reconciliation of the Balance Sheet to the Statement of Net Position 18 Statement of Revenues, Expenditures and Changes in Fund Balance 19 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balance to the Statement of Activities 20 Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - General Fund 21 Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual – Community Redevelopment Agency 22 Proprietary Funds Statement of Net Position 23 Statement of Revenues, Expenses and Changes in Net Position 25 Statement of Cash Flows 26 Fiduciary Funds Statement of Fiduciary Net Position 28 Statement of Changes in Fiduciary Net Position 29 Notes to the Financial Statements 30 i  CITY OF FORT WALTON BEACH, FLORIDA TABLE OF CONTENTS FOR THE YEAR ENDED SEPTEMBER 30, 2017 Page Schedule II. FINANCIAL SECTION (CONTINUED) C. REQUIRED SUPPLEMENTARY INFORMATION (UNAUDITED) Pension and OPEB Schedules Schedules of Changes in Net Pension Liability and Related Ratios 84 Schedule of Changes in Net OPEB Liability and Related Ratios 87 Schedule of Pension Contributions 88 Schedule of Investment Returns 89 Notes to the Schedule of Pension Contributions – General Employees’ Retirement Fund 90 Notes to the Schedule of Pension Contributions – Police Officers’ Retirement Fund 92 Notes to the Schedule of Pension Contributions – Firefighters’ Retirement Fund 94 D. COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES Non-Major Governmental Funds Combining Balance Sheet 95 Combining Statement of Revenues, Expenditures and Changes in Fund Balance 96 Schedules of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual Law Enforcement Trust Special Revenue Fund 97 Law Enforcement Trust Training Special Revenue Fund 98 Florida Building Code Special Revenue Fund 99 Community Development Block Grant Special Revenue Fund 100 Beal Memorial Cemetery Perpetual Care Special Revenue Fund 101 Debt Service Fund 102 III. STATISTICAL SECTION (UNAUDITED) Net Position by Component 103 1 Changes in Net Position 104 2 Fund Balances – Governmental Funds 106 3 Changes in Fund Balances – Governmental Funds 107 4 Revenues and Other Sources 108 5 Assessed Value of Taxable Property 109 6 ii  CITY OF FORT WALTON BEACH, FLORIDA TABLE OF CONTENTS FOR THE YEAR ENDED SEPTEMBER 30, 2017 Page Schedule III. STATISTICAL SECTION (UNAUDITED) Property Tax Rates Per $1,000 of Taxable Value – All Direct and Overlapping Governments 110 7 Principal Taxpayers 111 8 Property Tax Levies and Collections 112 9 Ratios of Outstanding Debt by Type 113 10 Ratio of Net General Bonded Debt Outstanding 114 11 Pledged Revenue Coverage – Schedule of Revenue Bond Coverage 115 12 Direct and Overlapping Governmental Activities Debt – General Obligations 116 13 Major Employers 117 14 Miscellaneous Demographical Statistics 118 15 Full-Time Equivalent Employees by Function/Program 119 16 Permits, Licenses and Recreation Facilities 120 17 Elections - Okaloosa County Voter Registration 121 18 Special Assessment Billings and Collections 122 19 Major Revenue Sources 123 20 Water and Wastewater Service Rates 124 21 Sanitation and Recycling Service Rates 125 22 Operating Indicators by Function/Program 126 23 Capital Asset Statistics by Function/Program 127 24 Insurance Coverage 128 25 IV. COMPLIANCE SECTION Schedule of Receipts and Expenditures of Funds Related to the Deepwater Horizon Oil Spill 131 Independent Auditors’ Report on the Schedule of Receipts and Expenditure of Funds Related to the Deepwater Horizon Oil Spill 132 Schedule of Expenditures of State Financial Assistance 133 Notes to the Schedule of Expenditures of State Financial Assistance 134 Independent Auditors’ Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 135 Independent Auditors’ Report on Compliance for Each Major State Project and on Internal Control Over Compliance