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

92  CITY OF FORT WALTON BEACH, FLORIDA REQUIRED SUPPLEMENTARY INFORMATION NOTES TO THE SCHEDULE OF PENSION CONTRIBUTIONS (UNAUDITED) – CONTINUED POLICE OFFICERS’ RETIREMENT FUND Cost-of-living increase: 3.00% per year beginning at retirement Payroll growth: None Actuarial asset Each year, the prior Actuarial Value of Assets is brought forward utilizing the method: historical geometric four-year average market value return. It is possible that over time this technique will produce an insignificant bias above or below market value. Termination and disability rate table: % Becoming Disabled During the % Terminating Age Year During the Year 20 0.14% 10.6% 30 0.18% 9.6% 40 0.30% 6.9% 50 1.00% 3.4% 93  CITY OF FORT WALTON BEACH, FLORIDA REQUIRED SUPPLEMENTARY INFORMATION NOTES TO THE SCHEDULE OF PENSION CONTRIBUTIONS (UNAUDITED) FIREFIGHTERS’ RETIREMENT FUND Valuation Date: October 1, 2015 Notes: Actuarially determined contribution rates are calculated as of October 1, which is two years prior to the end of the fiscal year in which contributions are reported. Methods and Assumptions Used to Determine Contribution Rates: Actuarial cost method: Entry Age Normal Actuarial Cost Method Amortization method: Level percentage of pay, closed Remaining amortization period: 30 years Mortality: RP-2000 Combined Healthy Table with a five year set forward for disabled lives. Based on a study of over 650 public safety funds, this table reflects a 10% margin for future mortality improvements. Interest rate: 8.00% per year compounded annually, net of investment related expenses Retirement age: Earlier of Age 55 and ten years of service or 25 years of service, regardless of age. Also, any Member who has reached Normal Retirement is assumed to continue employment for one additional year Early retirement: Commencing with the earliest early retirement age (45), Members are assumed to retire with an immediate subsidized benefit at the rate of 3.00% per year. Disability rate: See table below; it is assumed that 75% of disablements and active Member deaths are service related. Salary increases: 6.50% per year until the assumed retirement age Cost-of-living increase: 3.00% per year beginning at age 58 Payroll increase: 3.00% per year Actuarial asset Each year, the prior Actuarial Value of Assets is brought forward utilizing the method: historical geometric four-year average market value return. It is possible that over time Termination and disability rate table: % Becoming Disabled During % Terminating Age the Year During the Year 20 0.14% 7.9% 30 0.18% 7.2% 40 0.30% 5.2% 50 1.00% 2.6% 94 THIS PAGE IS LEFT INTENTIONALLY BLANK  CITY OF FORT WALTON BEACH, FLORIDA NON-MAJOR GOVERNMENTAL FUNDS COMBINING BALANCE SHEET SEPTEMBER 30, 2017 Special Revenue Funds Beal Law Memorial Total Law Enforcement Florida Community Cemetery Nonmajor Enforcement Trust Building Development Perpetual Governmental Trust Training Code Block Grant Care Debt Service Funds ASSETS Cash and cash equivalents $ 160,660 $ 577 $ 315,099 $ - $ 13,262 $ - $ 489,598 Investments - - - - 2,728,937 - 2,728,937 Due from other governments 17,376 - - 69,925 - - 87,301 Cash and cash equivalents - restricted - - - - - 21,156 21,156 TOTAL ASSETS $ 178,036 $ 577 $ 315,099 $ 69,925 $ 2,742,199 $ 21,156 $ 3,326,992 LIABILITIES Accounts payable $ 45,302 $ - $ 2,396 $ 7,940 $ 2,334 $ - $ 57,972 Accrued liabilities 12,470 - 6,652 - - - 19,122 Due to other funds - - - 67,846 - - 67,846 Total liabilities 57,772 - 9,048 75,786 2,334 - 144,940 FUND BALANCE Restricted 120,264 577 306,051 - - 21,156 448,048 Committed - - - - 2,739,865 - 2,739,865 Unassigned - - - (5,861) - - (5,861) Total fund balance 120,264 577 306,051 (5,861) 2,739,865 21,156 3,182,052 TOTAL LIABILITIES AND FUND BALANCE $ 178,036 $ 577 $ 315,099 $ 69,925 $ 2,742,199 $ 21,156 $ 3,326,992 95  CITY OF FORT WALTON BEACH, FLORIDA NON-MAJOR GOVERNMENTAL FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE FOR THE YEAR ENDED SEPTEMBER 30, 2017 Special Revenue Funds Beal Law Memorial Law Enforcement Florida Community Cemetery Total Nonmajor Enforcement Trust Building Development Perpetual Debt Governmental Trust Training Code Block Grant Care Service Funds REVENUES Permits and fees $ - $ - $ 409,920 $ - $ - $ - $ 409,920 Intergovernmental 20,146 - - 246,186 - - 266,332 Fines 3,748 4,918 - - - - 8,666 Miscellaneous 1,261 - 1,898 - 283,618 - 286,777 Total revenues 25,155 4,918 411,818 246,186 283,618 - 971,695 EXPENDITURES Current Public safety 121,365 4,429 416,683 - - - 542,477 Physical environment - - - - 13,124 - 13,124 Economic environment - - - 254,125 - - 254,125 Capital outlay 8,970 - - - - - 8,970 Debt service Principal - - - - - 682,229 682,229 Interest - - - - - 308,474 308,474 Total expenditures 130,335 4,429 416,683 254,125 13,124 990,703 1,809,399 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (105,180) 489 (4,865) (7,939) 270,494 (990,703) (837,704) OTHER FINANCING SOURCES (USES) Transfers in - - - - 21,760 990,703 1,012,463 Transfers out - - - - (20,217) - (20,217) Total other financing sources (uses) - - - - 1,543 990,703 992,246 NET CHANGE IN FUND BALANCE (105,180) 489 (4,865) (7,939) 272,037 - 154,542 FUND BALANCE AT BEGINNING OF YEAR 225,444 88 310,916 2,078 2,467,828 21,156 3,027,510 FUND BALANCE (DEFICIT) AT END OF YEAR $ 120,264 $ 577 $ 306,051 $ (5,861) $ 2,739,865 $ 21,156 $ 3,182,052 96  CITY OF FORT WALTON BEACH, FLORIDA LAW ENFORCEMENT TRUST SPECIAL REVENUE FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE –