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

unrestricted and may be used to meet the government’s ongoing obligations to citizens and creditors. Table 1 Statement of Net Position As of September 30 (In Thousands of Dollars) Governmental Business-Type Activities Total Activities 2017 2016 2017 2016 2017 2016 restated restated restated Current & Other $19,175 $18,400 $15,510 $14,155 $34,685 $32,555 Capital Assets 38,497 39,623 36,106 36,251 74,603 75,874 Total Assets 57,672 58,023 51,616 50,406 109,288 108,429 Deferred Outflow of Resources 10,035 6,005 1,781 1,171 11,816 7,716 Long‐Term Liabilities Outstanding 36,904 31,970 25,162 25,182 62,066 57,152 Other Liabilities 1,778 1,692 1,966 2,478 3,744 4,170 Total Liabilities 38,682 33,662 27,128 27,660 65,810 61,322 Deferred Inflow of Resources 1,032 1,172 109 219 1,141 1,391 Net Position Net Investment in Capital Assets 27,347 27,791 13,818 12,894 41,165 40,685 Restricted 2,094 2,161 610 562 2,704 2,723 Unrestricted (1,447) (758) 11,732 10,242 10,284 9,484 Total Net Position $27,994 $29,194 $26,160 $23,698 $54,153 $52,892 7 Reported in Table 2 are the key elements of the increase in net position for the current year. Table 2 Statement of Activities Governmental Activities Business-Type Activities Total Activities 2017 2016 2017 2016 2017 2016 Revenues Program Revenue: Charges for Services $3,517,477 $3,721,181 15,552,112 $14,602,206 19,069,589 18,323,387 Operating Grants & Contributions 825,624 908,595 - - 825,624 908,595 Capital Grants & Contributions 361,641 802,809 1,314,521 533,515 1,676,162 1,336,324 General Revenue: Property Taxes 5,807,598 5,617,998 - - 5,807,598 5,617,998 Other Taxes 6,755,699 8,841,512 - - 6,755,699 8,841,512 Tax Increments for Redevelopment 1,649,589 1,628,439 - - 1,649,589 1,628,439 Other Revenue 3,587,788 2,256,664 145,957 197,178 3,733,745 2,453,842 Total Revenues 22,505,416 23,777,198 17,012,590 15,332,899 39,518,006 39,110,097 Expenses Primary Government General Government 3,581,072 3,285,039 - - 3,581,072 3,285,039 Public Safety 11,507,059 10,172,215 - - 11,507,059 10,172,215 Physical Environment 543,287 430,490 - - 543,287 430,490 Transportation 1,536,979 1,494,178 - - 1,536,979 1,494,178 Economic Development 1,591,643 1,540,230 - - 1,597,643 1,540,230 Culture & Recreation 5,403,198 5,375,183 - - 5,403,198 5,375,183 Debt Service Interest 304,331 323,639 - - 304,331 323,639 Business‐Type Expenses Utilities - - 9,420,248 10,066,769 9,420,248 10,066,769 Sanitation - - 3,687,087 3,407,992 3,687,087 3,407,992 Other - - 681,541 611,351 681,541 611,351 Total Expenses 24,467,569 22,620,974 13,788,876 14,086,112 38,256,445 36,707,086 Increase/(Decrease) in Net Position (1,962,153) 1,156,224 3,223,714 1,246,787 1,261,561 2,403,011 before Transfers Transfers 761,739 755,846 (761,739) (755,846) - - Increase/(Decrease) in Net Position (1,200,414) 1,912,070 2,461,975 490,941 1,261,561 2,403,011 Net Position – Beginning 29,194,062 30,198,659 23,697,724 24,083,747 52,891,786 54,282,406 Restatement - (2,916,667) - (876,964) - (3,793,631) Net Position – Ending $27,993,648 $29,194,062 $26,159,699 $23,697,724 $54,153,347 $52,891,786 Current Year Impacts – Governmental Activities Governmental activities decreased the City’s net position by $1.2 million for the fiscal year ended September 30, 2017. Key elements of this change are as follows:  Total revenues decreased by $1.3 million which is primarily attributed to a decrease in capital grants and contributions of $441,168 due to the previous year’s receipt of an Assistance to Firefighters grant for a new station alert system and the sale of excess land for commercial development for $850,000 that was finalized in FYE 2016.  Public Safety expenses increased by $1.3 million due to the addition of two new Police Officers, pension related costs, and the implementation of the Collective Bargaining Unit Agreement for the Firefighters.  The City implemented GASB 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions, which required a $2.9 million restatement of beginning net position for governmental activities.  Overall, expenses for governmental activities increased by $1.8 million, or 8.2%, while related revenue decreased $1.3 million, or 5.3%. 8  Chart 1 Expense and Revenue ‐ Governmental Activities (In millions) Debt Service Interest Culture and Recreation Economic Environment Transportation Physical Environment Public Safety General Government 0 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 12,000,000 Revenues Expenses Chart 2 Municipal Revenue Revenues by Source ‐ Governmental Activities Franchise Fees , Sharing , $981,613 $2,034,209 Other Revenue , Tax Increments for $571,966 Redevelopment , $1,649,589 Charges for Services , $3,517,477 Other Taxes , Operating Grants & $3,962,859 Contributions , $825,624 Capital Grants & Property Taxes , Contributions , Sales Tax , $2,792,840 $5,807,598 $361,641 Franchise Fees Other Revenue Charges for Services Operating Grants & Contributions Capital Grants & Contributions Property Taxes Sales Tax Other Taxes Tax Increments for Redevelopment Municipal Revenue Sharing Current Year Impacts – Business-Type Activities Business-type activities increased the City’s net position by $2.5 million for the fiscal year ended September 30, 2017. Key elements of this change are as follows:  An increase in capital grants and contributions in the amount of $781,006, or 146.4%, as the City took advantage of State authorized funding for stormwater improvements.  The City implemented GASB 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions, which required an $875,000 restatement of beginning net position for business-type activities.  Overall, expenses for the business-type activities of the City decreased by $297,326, or 2.1%, primarily due to decreased waste water treatment flows. 9  Chart 3 Expenses and Program Revenue ‐ Business‐Type Activities (In millions) $12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 $‐ Utilities Sanitation Stormwater Expenses Revenues Chart 4 Capital Grants, Revenues by Source ‐ Business Type Activities