Fort Walton Beach — Annual Comprehensive Financial Report, September 30, 2022 — reading text

Compensated absences 33,177 16,153 1,368 50,698 Wages 91,315 45,865 9,358 146,538 Interest 69,843 - - 69,843 Other 715 178 - 893 Due to other governments - 9,511 - 9,511 Lease obligations payable 13,026 - 39,437 52,463 Revenue note payable 484,000 - - 484,000 State revolving loan payable 748,308 - - 748,308 Payable from restricted assets Customer deposits 355,224 880 - 356,104 Unearned revenues 70,811 - - 70,811 Total current liabilities 2,289,662 228,127 75,159 2,592,948 Non-current liabilities Accrued liabilities Compensated absences 99,529 48,458 4,104 152,091 Lease obligations payable 35,321 - 102,826 138,147 Revenue note payable 5,683,000 - - 5,683,000 State revolving loan payable 9,704,125 - - 9,704,125 Other post-employment benefits 767,464 511,148 201,395 1,480,007 Total non-current liabilities 16,289,439 559,606 308,325 17,157,370 TOTAL LIABILITIES 18,579,101 787,733 383,484 19,750,318 DEFERRED INFLOWS OF RESOURCES 1,525,683 785,508 257,055 2,568,246 NET POSITION Net investment in capital assets 8,585,984 1,440,749 3,395,958 13,422,691 Restricted Debt service 157,228 - - 157,228 System improvements 463,361 - - 463,361 Unrestricted 12,453,495 2,280,255 965,484 15,699,234 TOTAL NET POSITION $ 21,660,068 $ 3,721,004 $ 4,361,442 $ 29,742,514 See notes to the financial statements. 24  CITY OF FORT WALTON BEACH, FLORIDA PROPRIETARY FUNDS STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION FOR THE YEAR ENDED SEPTEMBER 30, 2022 Sanitation Stormwater Utilities Fund Fund Fund Total OPERATING REVENUES Charges for services $ 11,930,836 $ 4,824,130 $ 1,037,228 $ 17,792,194 OPERATING EXPENSES Personal services 2,367,794 1,243,512 279,545 3,890,851 Operating 5,983,370 2,620,863 316,360 8,920,593 Depreciation/amortization expense 1,722,982 277,731 436,443 2,437,156 Total operating expenses 10,074,146 4,142,106 1,032,348 15,248,600 OPERATING INCOME 1,856,690 682,024 4,880 2,543,594 NON-OPERATING REVENUES (EXPENSES) Rental income 13,997 - - 13,997 Interest expense (396,957) - (3,478) (400,435) Amortization (5,613) - - (5,613) Loss on disposal of capital assets (3,847) - - (3,847) Loss on investments (814,611) (209,471) (46,549) (1,070,631) Interest income 146,059 38,490 9,558 194,107 Grants in aid (398) - - (398) Miscellaneous 105 3,983 - 4,088 Total non-operating revenues (expenses) (1,061,265) (166,998) (40,469) (1,268,732) INCOME BEFORE CAPITAL CONTRIBUTIONS AND TRANSFERS 795,425 515,026 (35,589) 1,274,862 CAPITAL CONTRIBUTIONS AND TRANSFERS Capital grants and contributions - - 15,018 15,018 Impact fees 31,045 - - 31,045 Transfers out (1,229,877) (347,556) (219,650) (1,797,083) Total capital contributions and transfers (1,198,832) (347,556) (204,632) (1,751,020) CHANGE IN NET POSITION (403,407) 167,470 (240,221) (476,158) NET POSITION AT BEGINNING OF YEAR 22,063,475 3,553,534 4,601,663 30,218,672 NET POSITION AT END OF YEAR $ 21,660,068 $ 3,721,004 $ 4,361,442 $ 29,742,514 See notes to the financial statements. 25  CITY OF FORT WALTON BEACH, FLORIDA PROPRIETARY FUNDS STATEMENT OF CASH FLOWS FOR THE YEAR ENDED SEPTEMBER 30, 2022 Sanitation Stormwater Utilities Fund Fund Fund Total CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers and users $ 11,787,694 $ 4,709,952 $ 1,018,607 $ 17,516,253 Payments to suppliers (6,415,510) (2,602,071) (295,656) (9,313,237) Payments to employees (2,343,239) (1,229,713) (292,435) (3,865,387) Miscellaneous income 14,102 3,983 - 18,085 Net cash provided by operating activities 3,043,047 882,151 430,516 4,355,714 CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES Repayments on interfund loan - 52,452 - 52,452 Advanced from other funds - (243,150) - (243,150) Grants in aid (398) - - (398) Transfers out (1,229,877) (347,556) (219,650) (1,797,083) Net cash used in non-capital financing activities (1,230,275) (538,254) (219,650) (1,988,179) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Impact fee receipts 31,045 - - 31,045 Acquisitions of capital assets (307,322) (267,718) (261,860) (836,900) Proceeds from sale of capital assets 5,025 - - 5,025 Proceeds from issuance of leases 54,638 - 167,846 222,484 Principal paid on revenue note (470,000) - - (470,000) Principal paid on state revolving loan (734,290) - - (734,290) Principal paid on lease obligations (6,291) - (25,583) (31,874) Interest paid on long-term debt and leases (402,132) - (3,478) (405,610) Net cash used in capital and related financing activities (1,829,327) (267,718) (123,075) (2,220,120) CASH FLOWS FROM INVESTING ACTIVITIES Purchase of investments (3,108,259) (798,778) (179,079) (4,086,116) Proceeds from sales and maturities of investments 3,783,771 972,968 216,217 4,972,956 Investment income, net (668,552) (170,981) (36,991) (876,524) Net cash provided by investing activities 6,960 3,209 147 10,316 NET CHANGE IN CASH AND CASH EQUIVALENTS (9,595) 79,388 87,938 157,731 CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 1,580,547 880 342,646 1,924,073 CASH AND CASH EQUIVALENTS AT END OF YEAR $ 1,570,952 $ 80,268 $ 430,584 $ 2,081,804 See notes to the financial statements. 26  CITY OF FORT WALTON BEACH, FLORIDA PROPRIETARY FUNDS STATEMENT OF CASH FLOWS – CONTINUED FOR THE YEAR ENDED SEPTEMBER 30, 2022 Sanitation Stormwater Utilities Fund Fund Fund Total CASH AND CASH EQUIVALENTS AT END OF YEAR CONSIST OF Current assets $ 595,139 $ 79,388 $ 430,584 $ 1,105,111 Restricted assets 975,813 880 - 976,693 Total cash and cash equivalents $ 1,570,952 $ 80,268 $ 430,584 $ 2,081,804 RECONCILIATION OF OPERATING INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES Operating income $ 1,856,690 $ 682,024 $ 4,880 $ 2,543,594 Adjustments to reconcile operating income to net cash provided by operating activities: Depreciation 1,722,982 277,731 436,443 2,437,156 Miscellaneous revenue