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

Principal/Interest Requirement at Payments Due September 30, 2013 Principal due at July 1, 2014 $ 290,000 $ 72,500 Interest due at January 1, 2014 216,379 108,190 Total $ 506,379 $ 180,690 (1) (1) Amounts are included in restricted cash amounts on the Balance Sheet of the Utility Fund. 3. The City is required to establish a reserve in the amount of the Reserve Requirement established by the ordinance authorizing the issuance of the 2005 Bonds. The Reserve Requirement is the maximum bond service amount in the current or any subsequent year. The City satisfied the Reserve Requirement by establishing a reserve of $902,422 at September 30, 2013. 4. The City is not aware of any noncompliance with the bond ordinances. Capital Improvement Revenue Note, Series 2011 1. The Balance Sheet and Statement of Revenues, Expenses, Expenditures, and Changes in Fund Balance of the Debt Service Fund and Golf Fund are shown in the financial section of the report. 2. The City is required to establish Sinking Fund amounts sufficient to pay all principal and interest becoming due on the bonds on the next quarter payment date. Governmental Activities Business-Type Activities Sinking Fund Sinking Fund Requirement at Requirement at Principal/Interest September 30, Principal/Interest September 30, Payments Due 2013 Payments Due 2013 Principal due at October 1, 2013 $ 17,373 $ 17,373 $ 4,003 $ 4,003 Interest due at October 1, 2013 3,783 3,783 290 290 Total $ 21,156 $ 21,156 (1) $ 4,293 $ 4,293 (2) (1) Amounts are included in restricted cash amounts on the Balance Sheet of the Debt Service Fund. (2) Amounts are included in restricted cash amounts on the Balance Sheet of the Golf Fund. 3. The City is not aware of any noncompliance with the bond ordinances. 69  City of Fort Walton Beach, Florida NOTES TO FINANCIAL STATEMENTS September 30, 2013 NOTE 15 - COMMENTS REQUIRED BY THE BOND AND NOTE ORDINANCES (CONTINUED) Capital Improvement Refunding Revenue Note, Series 2013 1. The Balance Sheet and Statement of Revenues, Expenditures, and Changes in Fund Balance of the Debt Service Fund are shown in the financial section of the report. 2. The City is required to establish Sinking Fund amounts sufficient to pay all principal and interest becoming due on the notes on the next semi-annual payment date. The sinking fund was not required to be funded at September 30, 2013. 3. The City is not aware of any noncompliance with the note covenants. Capital Improvement Revenue Note, Series 2013A 1. The Balance Sheet and Statement of Revenues, Expenses, Expenditures, and Changes in Fund Balance of the Debt Service Fund and Golf Fund are shown in the financial section of the report. 2. The City is required to establish Sinking Fund amounts sufficient to pay all principal and interest becoming due on the notes on the next semi-annual payment date. The sinking fund was not required to be funded at September 30, 2013. 3. The City is not aware of any noncompliance with the note covenants. NOTE 16 - DEFERRED AND UNEARNED REVENUE Governmental funds report deferred revenue in connection with receivables that are not considered to be available to liquidate liabilities of the current period. Governmental and proprietary funds also defer revenue recognition in connection with resources received, but not yet earned. At September 30, 2013, the various components of deferred and unearned revenue were as follows: Unavailable Unearned Total Governmental Funds Special assessment for street resurfacing not yet due $ 110,564 $ - $ 110,564 Utilities Fund Prepaid utility bills - 31,630 31,630 Golf Fund Prepaid lease revenue - 4,339 4,339 Gift and prepaid cards - 19,739 19,739 Total Golf Fund - 24,078 24,078 Total $ 110,564 $ 55,708 $ 166,272 70  City of Fort Walton Beach, Florida NOTES TO FINANCIAL STATEMENTS September 30, 2013 NOTE 17 - INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS The composition of interfund balances as of September 30, 2013, is as follows: Due to/from Other Funds Receivable Fund Payable Fund Amount General Golf $ 157,846 General Community Development Block Grant 7,754 $ 165,600 General Fund receivables from the Golf Fund and Community Development Block Grant Fund in the amount of $165,600 are the result of eliminating temporary deficit cash balances. Transfers In Nonmajor Govern- Transfers Out General Fund mental Fund Golf Fund Total General $ - $ 220,010 $ 2,595,977 $ 2,815,987 Nonmajor governmental 3,290 - - 3,290 Utilities 320,536 - - 320,536 Sanitation 130,000 - - 130,000 $ 453,826 $ 220,010 $ 2,595,977 $ 3,269,813 The transfers out of the General Fund are $2,815,987. This transfer consist of an $181,484 transfer to the Debt Service Fund (Nonmajor Governmental Fund) for principal and interest payments on debt, and a $38,526 transfer to the Cemetery Perpetual Care Fund (Nonmajor Governmental Fund) for maintenance. In addition, City Council voted to terminate the golf enterprise fund and collapse operations into the City’s general fund during the fiscal year 2013-14 budget process. In doing so, City Council forgave a $2.9 million interfund loan that was originally made from the general fund to the golf enterprise fund in fiscal year 2010 in order to provide for the defeasance of the then outstanding 1999 Capital Improvement Revenue Bonds, Series A and B. The outstanding balance of the loan, $2,595,977, makes up the remaining balance of the transfers out of the General Fund. Transfers in to the General Fund of $453,826 consist of a $3,290 transfer from the Beal Cemetery Perpetual Care Fund (Nonmajor Governmental Fund) to cover improvements made to the Beal Memorial Cemetery, franchise fees from the Utility Fund of $320,536 and compensation from the Sanitation fund for additional wear & tear caused by the heavy trucks in the amount of $130,000. 71  City of Fort Walton Beach, Florida NOTES TO FINANCIAL STATEMENTS September 30, 2013 NOTE 18 - GOVERNMENTAL FUND BALANCES At September 30, 2013, the City's governmental fund balances were classified as follows: Community Other Total Redevelopment Governmental Governmental General Fund Agency Funds Funds Nonspendable Inventory $ 254,229 $ - $ - $ 254,229 Restricted for Improvement districts - 3,833,430 - 3,833,430 Capital projects 7,691,393 - - 7,691,393 Library 175,765 - - 175,765 Public safety - - 462,375 462,375 Debt service - - 21,156 21,156 Other purposes 1,364 - - 1,364 Total restricted 7,868,522 3,833,430 483,531 12,185,483 Committed Cemetery maintenance - - 2,035,225 2,035,225 Natural disaster recovery 5,501,353 - - 5,501,353 Total committed 5,501,353 - 2,035,225 7,536,578 Assigned to Capital projects 1,065,883 - - 1,065,883 Self-insurance dental program refund 52,536 - - 52,536 Citizen police academy 3,052 - - 3,052 Main Street 5,504 - - 5,504 Other 1,328 - - 1,328 FY 2014 budget appropriation 173,082 - - 173,082 Assigned 1,301,385 - - 1,301,385 Unassigned 788,076 -