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

Net investment income 4,031,981 (4,390) 3,228,153 Benefit payments, including refunds of employee contributions (2,858,889) (2,676,038) (2,575,304) Administrative expenses (35,704) (39,535) (42,483) Net change in plan fiduciary net position 2,619,738 (1,155,355) 2,119,606 Plan fiduciary net position – beginning 38,086,889 39,242,244 37,122,638 Plan fiduciary net position – ending (b) $ 40,706,627 $ 38,086,889 $ 39,242,244 Net pension liability – ending (a) – (b) $ 8,059,390 $ 4,777,742 $ 3,487,967 Plan fiduciary net position as a percentage of the total pension liability 83.47% 88.85% 91.84% Covered employee payroll $ 4,045,350 $ 4,191,304 $ 4,255,801 Net pension liability as a percentage of covered employee payroll 199.23% 113.99% 81.96% Notes to schedule: 1 As a result of Chapter 2015-157, Laws of Florida, the assumed rates of mortality were changed to the assumptions used by the Florida Retirement System. 84  CITY OF FORT WALTON BEACH, FLORIDA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS (UNAUDITED) POLICE OFFICERS’ RETIREMENT FUND Measurement Date 2016 2015 2014 Total Pension Liability Service cost $ 344,958 $ 336,234 $ 322,118 Interest 1,948,181 1,953,123 1,905,286 Differences between expected and actual experiences (425,107) (659,966) - 2 Changes of assumptions 1,633,122 - - Benefit payments, including refunds of employee contributions (1,744,710) (1,655,069) (1,632,053) Net change in total pension liability 1,756,444 (25,678) 595,351 Total pension liability – beginning 24,982,724 25,008,402 24,413,051 Total pension liability – ending (a) $ 26,739,168 $ 24,982,724 $ 25,008,402 Plan Fiduciary Net Position 1 Contributions – employer $ 577,564 $ 628,975 $ 836,053 Contributions – state 181,303 175,025 175,703 Contributions – member 102,214 101,886 96,591 Net investment income 1,698,093 (538,198) 1,869,244 Benefit payments, including refunds of employee contributions (1,744,710) (1,655,069) (1,632,053) Administrative expenses (44,882) (25,084) (38,242) Net change in plan fiduciary net position 769,582 (1,312,465) 1,307,296 Plan fiduciary net position – beginning 19,150,987 20,463,452 19,156,156 Plan fiduciary net position – ending (b) $ 19,920,569 $ 19,150,987 $ 20,463,452 Net pension liability – ending (a) – (b) $ 6,818,599 $ 5,831,737 $ 4,544,950 Plan fiduciary net position as a percentage of the total pension liability 74.50% 76.66% 81.83% Covered employee payroll $ 2,073,208 $ 2,037,716 $ 1,975,478 Net pension liability as a percentage of covered employee payroll 328.89% 286.19% 230.07% Notes to schedule: 1 Adjusted for actual contributions made 2 As a result of Chapter 2015-157, Laws of Florida, the assumed rates of mortality were changed to the assumptions used by the Florida Retirement System for special risk employees. 85  CITY OF FORT WALTON BEACH, FLORIDA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS (UNAUDITED) FIREFIGHTERS’ RETIREMENT FUND Measurement Date 2016 2015 2014 2013 Total Pension Liability Service cost $ 453,506 $ 478,365 $ 414,836 $ 384,107 Interest 1,645,954 1,554,072 1,425,875 1,367,809 Change in excess state money - - 89,886 Changes of benefit terms - 804,097 - - Differences between expected and actual experiences 261,007 (224,382) - - Contributions – buy back - 72,413 - - 1 Changes of assumptions 1,243,794 - - - Benefit payments, including refunds of employee contributions (1,237,389) (1,140,432) (1,071,302) (1,042,333) Net change in total pension liability 2,366,872 1,544,133 859,295 709,583 Total pension liability – beginning 20,739,618 19,195,485 18,336,190 17,626,607 Total pension liability – ending (a) $ 23,106,490 $ 20,739,618 $ 19,195,485 $ 18,336,190 Plan Fiduciary Net Position Contributions – employer $ 744,019 $ 672,369 $ 715,439 $ 703,618 Contributions – state 201,904 205,007 214,272 204,226 Contributions – member 164,876 150,357 135,622 133,633 Contributions – buy back - 72,413 - - Net investment income 969,107 15,563 1,201,162 1,099,298 Benefit payments, including refunds of employee contributions (1,237,389) (1,140,432) (1,071,302) (1,042,333) Administrative expenses (43,625) (47,088) (34,537) (33,706) Net change in plan fiduciary net position 798,892 (71,811) 1,160,656 1,064,736 Plan fiduciary net position – beginning 13,590,508 13,662,319 12,501,663 11,436,927 Plan fiduciary net position – ending (b) $ 14,389,400 $ 13,590,508 $ 13,662,319 $ 12,501,663 Net pension liability – ending (a) – (b) $ 8,717,090 $ 7,149,110 $ 5,533,166 $ 5,834,527 Plan fiduciary net position as a percentage of the total pension liability 62.27% 65.53% 71.17% 68.18% Covered employee payroll $ 2,060,954 $ 2,072,260 $ 2,054,879 $ 2,054,879 Net pension liability as a percentage of covered employee payroll 422.96% 344.99% 269.27% 283.94% Notes to schedule: 1 As a result of Chapter 2015-157, Laws of Florida, the assumed rates of mortality were changed to the assumptions used by the Florida Retirement System for special risk employees. The inflation assumption rate was lowered from 3.00% to 2.50%, matching the long-term inflation assumption utilized by the plan's investment consultant. 86  CITY OF FORT WALTON BEACH, FLORIDA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF CHANGES IN NET OPEB LIABILITY AND RELATED RATIOS (UNAUDITED) FORT WALTON BEACH RETIREE HEALTH CARE PLAN Measurement Date 2016 Total OPEB Liability Service cost $ 85,100 Interest 195,814 Changes of assumptions 1 702,672 Benefit payments (139,227) Net change in total OPEB liability 844,359 Total OPEB liability - beginning 5,261,882 Total OPEB liability - ending (a) 6,106,241 Plan Fiduciary Net Position Contributions - employer 141,727 Benefit payments (139,227) Administrative expenses (2,500) Net change in plan fiduciary net position - Plan fiduciary net position - beginning - Plan fiduciary net position - ending (b) - Sponsor's net OPEB liability - ending (a) - (b) $ 6,106,241 Plan fiduciary net position as a percentage of total OPEB liability 0.00% Covered employee payroll $ 7,520,263 City's net OPEB liability as a percentage of covered employee payroll 81.20% Notes to schedule: 1 As a result of Chapter 2015-157, Laws of Florida, the assumed rates of mortality were changed to the assumptions used by the Florida Retirement System to match the pension plan assumptions. * This schedule is not available for earlier years. 87  CITY OF FORT WALTON BEACH, FLORIDA REQUIRED SUPPLEMENTARY