Fort Walton Beach — Comprehensive Annual Financial Report September 30, 2013 — reading text

Comprehensive Annual Financial Report City of Fort Walton Beach, Florida With Compliance Matters and Responses Fiscal Year Ended September 30, 2013 City of Fort Walton Beach, Florida COMPREHENSIVE ANNUAL FINANCIAL REPORT for the Fiscal Year Ended September 30, 2013 Prepared by The Finance Department City of Fort Walton Beach 107 Miracle Strip Parkway Fort Walton Beach, Florida 32548 WWW.FWB.ORG (THIS PAGE INTENTIONALLY LEFT BLANK.)  CITY OF FORT WALTON BEACH, FL City Council Left to right (standing): Bobby Griggs (Seat 1), joyce gossom (Seat 2), Amy Jamieson (Seat 5), Bull Rigdon (Seat 6), and Dick Rynearson (Seat 7). Left to right (seated): John Mead (Seat 3), Mayor Mike Anderson, and Trey Goodwin (Seat 4). City Manager – Michael Beedie City Clerk – Helen Spencer City Attorney – Hayward Dykes, Jr. Finance Director – Brandy Ferris (THIS PAGE INTENTIONALLY LEFT BLANK.) I. INTRODUCTORY SECTION  TABLE OF CONTENTS  LETTER OF TRANSMITTAL  GOVERNMENT FINANCE OFFICERS CERTIFICATE OF ACHIEVEMENT FOR EXCELLENCE IN FINANCIAL REPORTING  ORGANIZATIONAL CHART  City of Fort Walton Beach, Florida COMPREHENSIVE ANNUAL FINANCIAL REPORT Year Ended September 30, 2013 Page Exhibit TITLE PAGE CITY OFFICIALS I. INTRODUCTORY SECTION Table of Contents i Letter of Transmittal City Manager and Finance Director iv GFOA Certificate of Achievement ix Organizational Chart x II. FINANCIAL SECTION Independent Auditor’s Report 1 A. MANAGEMENT’S DISCUSSION AND ANALYSIS 3 B. BASIC FINANCIAL STATEMENTS Government-Wide Financial Statements Statement of Net Position 14 I Statement of Activities 15 II Fund Financial Statements Governmental Funds Balance Sheet 16 IIIA Reconciliation of the Balance Sheet to the Statement of Net Position 17 IIIB Statement of Revenues, Expenditures and Changes in Fund Balance 18 IVA Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balance to the Statement of Activities 19 IVB Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - General Fund 20 VA Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual – Community Redevelopment Agency 21 VB Proprietary Funds Statement of Net Position 22 VI Statement of Revenues, Expenses and Changes in Net Position 24 VII Statement of Cash Flows 25 VIII Fiduciary Funds Statement of Fiduciary Net Position 27 IX Statement of Changes in Fiduciary Net Position 28 X Notes to Financial Statements 29 i  City of Fort Walton Beach, Florida COMPREHENSIVE ANNUAL FINANCIAL REPORT Year Ended September 30, 2013 Statement/ Page Schedule II. FINANCIAL SECTION (CONTINUED) C. REQUIRED SUPPLEMENTARY INFORMATION Pension Schedules Schedule of Funding Progress 76 A-1 Schedule of Contributions from the Employer and Other Contributing Entities (unaudited) 77 A-2 Schedule of Other Post-Employment Obligations (unaudited) 78 A-3 D. COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES Non-Major Governmental Funds Combining Balance Sheet 79 B-1 Combining Statement of Revenues, Expenditures and Changes in Fund Balance 80 B-2 Schedules of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Law Enforcement Trust Special Revenue Fund 81 C-1 Law Enforcement Trust Training Special Revenue Fund 82 C-2 Florida Building Code Special Revenue Fund 83 C-3 Community Development Block Grant Special Revenue Fund 84 C-4 Beal Memorial Cemetery Perpetual Care Special Revenue Fund 85 C-5 Debt Service Fund 86 C-6 Non-Major Fund – Enterprise Fund Statement of Net Position 87 D-1 Statement of Revenues, Expenses and Changes in Net Position 88 D-2 Statement of Cash Flows 89 D-3 III. STATISTICAL SECTION (UNAUDITED) Net Position by Component 90 1 Changes in Net Position 91 2 Fund Balances - Governmental Funds 93 3 Changes in Fund Balances - Governmental Funds 94 4 Revenues and Other Sources 95 5 Assessed Value of Taxable Property 96 6 Property Tax Rates Per $1,000 of Taxable Value - All Direct and Overlapping Governments 97 7 ii  City of Fort Walton Beach, Florida COMPREHENSIVE ANNUAL FINANCIAL REPORT Year Ended September 30, 2013 Statement/ Page Schedule III. STATISTICAL SECTION (UNAUDITED) Principal Taxpayers 98 8 Property Tax Levies and Collections 99 9 Ratios of Outstanding Debt by Type 100 10 Ratio of Net General Bonded Debt Outstanding 101 11 Pledged Revenue Coverage – Schedule of Revenue Bond Coverage 102 12 Direct and Overlapping Governmental Activities Debt – General Obligations 103 13 Major Employers 104 14 Miscellaneous Demographical Statistics 105 15 Full-Time Equivalent Employees by Function/Program 106 16 Permits, Licenses and Recreation Facilities 107 17 Elections - Okaloosa County Voter Registration 108 18 Special Assessment Billings and Collections 109 19 Major Revenue Sources 110 20 Water and Wastewater Service Rates 111 21 Sanitation and Recycling Service Rates 112 22 Operating Indicators by Function/Program 113 23 Capital Asset Statistics by Function/Program 114 24 Insurance Coverage 115 25 IV. COMPLIANCE SECTION Schedule of Expenditures of State Financial Assistance 119 Notes to Schedule of Expenditures of State Financial Assistance 120 Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 121 Report on Compliance with Requirements Applicable to Each Major State Project and Internal Control Over Compliance in Accordance With Chapter 10.550, Rules of the Auditor General 123 Schedule of Findings and Questioned Costs 125 Management Letter 126 iii (THIS PAGE INTENTIONALLY LEFT BLANK.)  City of Fort Walton Beach America's Most Beautiful Beaches 107 Miracle Strip Parkway, SW * Fort Walton Beach, Fl 32548 (850) 833-9500 * Fax (850) 833-9640 * www.fwb.org March 3, 2014 Honorable Mayor, City Council Members, and Citizens of the City of Fort Walton Beach City of Fort Walton Beach 107 Miracle Strip Parkway SW Fort Walton Beach, FL 32548 Ladies and Gentlemen: The Comprehensive Annual Financial Report of the City of Fort Walton Beach, Florida for the fiscal year ended September 30, 2013, is hereby submitted herewith pursuant to Florida Statutes Chapter 218.39(1)(d) requiring each local government entity to complete an audit report within nine months after the end of the fiscal year. This report consists of management’s representations concerning the finances of the City of Fort Walton Beach, Florida. Consequently, management assumes full responsibility for the completeness and reliability of all the information presented in this report. To provide a reasonable basis for making these representations, management of the City of Fort Walton Beach has