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

STATEMENT OF NET POSITION – CONTINUED SEPTEMBER 30, 2017 Sanitation Stormwater Utilities Fund Fund Fund Total LIABILITIES Current liabilities Accounts payable 250,102 113,472 1,949 365,523 Accrued liabilities Compensated absences 25,528 14,216 4,206 43,950 Wages 37,904 20,787 4,810 63,501 Interest 94,449 - - 94,449 Other 872 1,587 249 2,708 Due to other governments - 8,167 - 8,167 Revenue note payable 419,000 - - 419,000 State revolving loan payable 680,796 - - 680,796 Payable from restricted assets Customer deposits 247,927 8,275 - 256,202 Unearned revenue 31,862 - - 31,862 Total current liabilities 1,788,440 166,504 11,214 1,966,158 Non-current liabilities Accrued liabilities Compensated absences 76,585 42,648 12,617 131,850 Revenue note payable 7,968,000 - - 7,968,000 State revolving loan payable 13,308,089 - - 13,308,089 Other post-employment benefits 669,433 445,853 175,635 1,290,921 Net pension liability 1,643,407 662,829 156,597 2,462,833 Total non-current liabilities 23,665,514 1,151,330 344,849 25,161,693 TOTAL LIABILITIES 25,453,954 1,317,834 356,063 27,127,851 DEFERRED INFLOWS OF RESOURCES 73,017 29,450 6,958 109,425 NET POSITION Net investment in capital assets 9,507,516 1,232,502 3,078,322 13,818,340 Restricted Debt service 157,228 - - 157,228 System improvements 452,472 - - 452,472 Unrestricted 8,783,348 1,984,091 964,220 11,731,659 TOTAL NET POSITION $ 18,900,564 $ 3,216,593 $ 4,042,542 $ 26,159,699 See notes to the financial statements. 24  CITY OF FORT WALTON BEACH, FLORIDA PROPRIETARY FUNDS STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION FOR THE YEAR ENDED SEPTEMBER 30, 2017 Sanitation Stormwater Utilities Fund Fund Fund Total OPERATING REVENUES Charges for services $ 10,952,375 $ 3,663,445 $ 917,844 $ 15,533,664 OPERATING EXPENSES Personal services 2,068,079 1,225,784 302,939 3,596,802 Operating 4,885,407 2,174,194 247,708 7,307,309 Depreciation/amortization expense 1,935,871 287,109 130,894 2,353,874 Total operating expenses 8,889,357 3,687,087 681,541 13,257,985 OPERATING INCOME (LOSS) 2,063,018 (23,642) 236,303 2,275,679 NON-OPERATING REVENUES (EXPENSES) Rental income 18,448 - - 18,448 Interest expense (524,780) - - (524,780) Amortization (5,613) - - (5,613) Gain on disposal of capital assets 9,464 21,344 1,855 32,663 Gain (loss) on investment (69,045) (17,754) (3,945) (90,744) Interest 128,101 40,939 7,271 176,311 Grants in aid (498) - - (498) Miscellaneous 5,935 20,811 981 27,727 Total non-operating revenues (expenses) (437,988) 65,340 6,162 (366,486) INCOME BEFORE CAPITAL CONTRIBUTIONS AND TRANSFERS 1,625,030 41,698 242,465 1,909,193 CAPITAL CONTRIBUTIONS AND TRANSFERS Capital contributions - - 1,247,058 1,247,058 Impact fees 67,463 - - 67,463 Transfers out (618,208) (143,531) - (761,739) Total capital contributions and transfers (550,745) (143,531) 1,247,058 552,782 CHANGE IN NET POSITION 1,074,285 (101,833) 1,489,523 2,461,975 NET POSITION AT BEGINNING OF YEAR YEAR, RESTATED 17,826,279 3,318,426 2,553,019 23,697,724 NET POSITION AT END OF YEAR $ 18,900,564 $ 3,216,593 $ 4,042,542 $ 26,159,699 See notes to the financial statements. 25  CITY OF FORT WALTON BEACH, FLORIDA PROPRIETARY FUNDS STATEMENT OF CASH FLOWS FOR THE YEAR ENDED SEPTEMBER 30, 2017 Sanitation Stormwater Utilities Fund Fund Fund Total CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers and users $ 10,941,192 $ 3,658,780 $ 1,416,738 $ 16,016,710 Payments to suppliers (5,336,282) (2,170,911) (366,774) (7,873,967) Payments to employees (1,948,594) (1,094,092) (194,274) (3,236,960) Miscellaneous income 24,383 20,811 981 46,175 Net cash provided by operating activities 3,680,699 414,588 856,671 4,951,958 CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES Change in intergovernmental balances (4,069) 180 - (3,889) Advance to other funds - 47,508 - 47,508 Grants and aids (498) - - (498) Transfers out (618,208) (143,531) - (761,739) Net cash used in non-capital financing activities (622,775) (95,843) - (718,618) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Impact fess received 55,660 - - 55,660 Acquisitions of capital assets (478,704) (255,699) (1,475,522) (2,209,925) Proceeds from disposal of capital assets 2,261 21,344 1,855 25,460 Proceeds from capital grants and contributions - - 660,912 660,912 Principal paid on revenue note (407,000) - - (407,000) Principal paid on state revolving loan (668,044) - - (668,044) Interest paid on loans and notes payable (529,337) - - (529,337) Net cash used in capital and related financing activities (2,025,164) (234,355) (812,755) (3,072,274) CASH FLOWS FROM INVESTING ACTIVITIES Purchase of investments (5,322,295) (1,453,295) (759,662) (7,535,252) Proceeds from sales and maturities of investments 5,414,140 1,392,207 309,379 7,115,726 Investment income, net 59,056 23,185 3,326 85,567 Net cash provided by (used in) capital and related financing activities 150,901 (37,903) (446,957) (333,959) NET DECREASE IN CASH AND CASH EQUIVALENTS 1,183,661 46,487 (403,041) 827,107 CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 1,677,391 224,311 516,618 2,418,320 CASH AND CASH EQUIVALENTS AT END OF YEAR $ 2,861,052 $ 270,798 $ 113,577 $ 3,245,427 See notes to the financial statements. 26  CITY OF FORT WALTON BEACH, FLORIDA PROPRIETARY FUNDS STATEMENT OF CASH FLOWS - CONTINUED FOR THE YEAR ENDED SEPTEMBER 30, 2017 Sanitation Stormwater Utilities Fund Fund Fund Total CASH AND CASH EQUIVALENTS AT END OF YEAR CONSIST OF Current assets $ 2,003,425 $ 262,523 $ 113,577 $ 2,379,525 Restricted assets 857,627 8,275 - 865,902 Total cash and cash equivalents $ 2,861,052 $ 270,798 $ 113,577 $ 3,245,427 RECONCILIATION OF OPERATING INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES Operating income $ 2,063,018 $ (23,642) $ 236,303 $ 2,275,679 Adjustments to reconcile operating income to net cash provided by operating activities: Depreciation 1,935,871