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

Okaloosa County’s economy, with approximately 70% of our local economy supported by the military. 13  These financial policies, as well as other indicators, were taken into account when adopting the City’s budget for fiscal year 2018. The City’s budget for fiscal year 2018 totals $41.6 million, which is $2.9 million higher than the fiscal year 2017 approved budget, due to increased operating expenses, primarily related to pension costs. The 2018 budget allocates $22.3 million, an 11.3% increase as compared to the fiscal year 2017 budget, to the General fund, $15.9 million to the Enterprise funds, and $3.4 million to other funds. For the fiscal year 2018 budget, the ad valorem rate was maintained at 5.7697 mills. A 4.0% increase in water and sewer rates is included in the budget, and stormwater fees are scheduled to increase $0.25. No other significant changes to the City’s various rate and fees are included in the fiscal year 2018 budget. Personnel expenses account for approximately 51.4% of the City’s budget. The City’s fiscal year 2018 budget remains relatively stable in this category, at 299.53 full time equivalent positions, an increase of only 3.95 over last year. REQUESTS FOR INFORMATION This financial report is designed to provide citizens, taxpayers, customers, and creditors with a general overview of the City of Fort Walton Beach’s finances and to demonstrate the City’s accountability for the money it receives. Questions concerning any of the information provided in this report, or requests for additional information, should be addressed to the Finance Director, 107 Miracle Strip Parkway S.W., City of Fort Walton Beach, Florida, 32548. This document and other financial information are available on the City’s website at www.fwb.org. Inquiries may also be sent via email to the Finance Department at finance@fwb.org. 14  CITY OF FORT WALTON BEACH, FLORIDA STATEMENT OF NET POSITION SEPTEMBER 30, 2017 Primary Government Governmental Business-Type Activities Activities Total ASSETS Cash and cash equivalents $ 2,918,408 $ 2,379,525 $ 5,297,933 Investments 14,886,513 10,356,454 25,242,967 Receivables, net 539,464 927,884 1,467,348 Internal balances (360,253) 360,253 - Due from other governments 238,118 590,215 828,333 Inventory, at cost 245,181 17,055 262,236 Prepaid assets - 7,046 7,046 Restricted assets Cash and cash equivalents 21,156 865,902 887,058 Other assets Other receivables, net 686,537 5,947 692,484 Capital assets Non-depreciable/amortizable 11,121,076 886,902 12,007,978 Depreciable/amortizable, net 27,375,777 35,218,917 62,594,694 TOTAL ASSETS 57,671,977 51,616,100 109,288,077 DEFERRED OUTFLOWS OF RESOURCES 10,035,486 1,780,875 11,816,361 LIABILITIES Accounts payable 462,614 365,523 828,137 Accrued liabilities 342,383 160,658 503,041 Due to other governments 18,108 8,167 26,275 Unearned revenues 23,720 31,862 55,582 Payable from restricted assets Accrued interest 70,816 - 70,816 Customer deposits - 256,202 256,202 Non-current liabilities Due within one year Compensated absences 163,123 43,950 207,073 Leases payable 32,706 - 32,706 Revenue notes payable 664,711 419,000 1,083,711 State revolving loans payable - 680,796 680,796 Due in more than one year Compensated absences 503,631 131,850 635,481 Leases payable 43,393 - 43,393 Revenue notes payable 10,408,945 7,968,000 18,376,945 State revolving loans payable - 13,308,089 13,308,089 Other post-employment benefits 4,815,320 1,290,921 6,106,241 Net pension liability 21,132,246 2,462,833 23,595,079 TOTAL LIABILITIES 38,681,716 27,127,851 65,809,567 DEFERRED INFLOWS OF RESOURCES 1,032,099 109,425 1,141,524 NET POSITION Net investment in capital assets 27,347,098 13,818,340 41,165,438 Restricted Debt service 21,156 157,228 178,384 System improvements - 452,472 452,472 Improvement districts 1,552,484 - 1,552,484 Public safety 426,892 - 426,892 Other purposes 93,456 - 93,456 Unrestricted (deficit) (1,447,438) 11,731,659 10,284,221 TOTAL NET POSITION $ 27,993,648 $ 26,159,699 $ 54,153,347 See notes to the financial statements. 15  CITY OF FORT WALTON BEACH, FLORIDA STATEMENT OF ACTIVITIES FOR THE YEAR ENDED SEPTEMBER 30, 2017 Net (Expense) Revenue and Changes in Net Position Program Revenues Primary Government Charges for Operating Grants Capital Grants and Governmental Business-Type Function/program activities Expenses Services and Contributions Contributions Activities Activities Total Governmental activities General government $ 3,581,072 $ 448,911 $ 23,416 $ - $ (3,108,745) $ - $ (3,108,745) Public safety 11,507,059 570,556 439,033 358,941 (10,138,529) - (10,138,529) Physical environment 543,287 399,338 - - (143,949) - (143,949) Transportation 1,536,979 240,653 - - (1,296,326) - (1,296,326) Economic environment 1,591,643 12,000 246,261 - (1,333,382) - (1,333,382) Culture and recreation 5,403,198 1,846,019 116,914 2,700 (3,437,565) - (3,437,565) Debt service interest 304,331 - - - (304,331) - (304,331) Total governmental activities 24,467,569 3,517,477 825,624 361,641 (19,762,827) - (19,762,827) Business-type activities Utilities 9,420,248 10,970,823 - 67,463 - 1,618,038 1,618,038 Sanitation 3,687,087 3,663,445 - - - (23,642) (23,642) Stormwater 681,541 917,844 - 1,247,058 - 1,483,361 1,483,361 Total business-type activities 13,788,876 15,552,112 - 1,314,521 3,077,757 3,077,757 Total primary government $ 38,256,445 $ 19,069,589 $ 825,624 $ 1,676,162 (19,762,827) 3,077,757 (16,685,070) General revenues Taxes Property taxes 5,807,598 - 5,807,598 Sales taxes 2,792,840 - 2,792,840 Utility service taxes 3,962,859 - 3,962,859 Tax increments for redevelopment districts 1,649,589 - 1,649,589 Franchise fees 2,034,209 - 2,034,209 Intergovernmental, unrestricted 981,613 - 981,613 Gain on sale of assets - 32,663 32,663 Miscellaneous 157,806 27,727 185,533 Investment earnings 414,160 85,567 499,727 Transfers 761,739 (761,739) - Total general revenues