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

2027 1,355,391 486,534 - - - - 2028-2032 7,780,712 1,575,035 - - - - 2033-2037 4,593,200 656,800 - - - - 2038-2042 604,835 23,165 - - - - Total $ 20,253,795 $ 5,104,140 $ 600,745 $ 11,264 $ 393,186 $ 19,598 78  CITY OF FORT WALTON BEACH, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2022 14. LONG-TERM DEBT – CONTINUED Annual Requirements to Amortize Debt Outstanding – Continued Business-Type Activities Year Ending Revenue Note State Revolving Loan Lease Obligations September 30 Principal Interest Principal Interest Principal Interest 2023 $ 484,000 $ 180,076 $ 748,308 $ 195,059 $ 52,463 $ 7,482 2024 498,000 165,944 762,594 180,773 54,941 5,003 2025 512,000 151,402 777,152 166,215 57,538 2,408 2026 527,000 136,452 791,988 151,379 25,668 216 2027 542,000 121,063 807,107 136,260 - - 2028-2032 2,959,000 358,342 4,272,620 444,213 - - 2033-2037 645,000 18,834 2,292,664 65,753 - - Total $ 6,167,000 $ 1,132,113 $ 10,452,433 $ 1,339,652 $ 190,610 $ 15,109 15. COMMENTS REQUIRED BY THE BOND AND ORDINANCES 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 semiannual payment date. The sinking fund was not required to be funded at September 30, 2022. 3. The City is not aware of any instances of noncompliance with the debt covenants. Capital Improvement Revenue Note, Series 2013A 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 semiannual payment date. The sinking fund was not required to be funded at September 30, 2022. 3. The City is not aware of any instances of noncompliance with the debt covenants. Capital Improvement Revenue Note, Series 2018 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 semiannual payment date. The sinking fund was not required to be funded at September 30, 2022. 3. The City is not aware of any instances of noncompliance with the debt covenants. 79  CITY OF FORT WALTON BEACH, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2022 15. COMMENTS REQUIRED BY THE BOND AND ORDINANCES – CONTINUED Golf Course Revenue Note, Series 2021 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 semiannual payment date. The sinking fund was not required to be funded at September 30, 2022. 3. The City is not aware of any instances of noncompliance with the debt covenants. Utility System Revenue Refunding Note, Series 2015 1. The statement of net position and statement of revenues, expenses, and changes in net position of the Utility Fund are shown in the financial section of the report. 2. Net revenues pledged consist of gross revenues less costs of operation and maintenance. The net revenues pledged in fiscal year 2022 were approximately $3,458,033. 3. The debt issued refunded Series 2005 bond used for system improvements. 4. The term of the pledge commitment ends in January 2033. 5. The pledged revenues needed to meet the rate covenants in fiscal year 2022 were $828,895. The covenant is based upon 125% of the annual debt service requirement. 6. The pledged revenues exceeded the debt service requirements by $2,629,138 in fiscal year 2022. 7. The City is not aware of any instances of noncompliance with the debt covenants. 16. INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS The composition of interfund balances as of September 30, 2022, was as follows: Due to/from Other Funds Receivable Fund Payable Fund Amount General Community Development Block Grant $ 57,695 Advance to/from Other Funds Receivable Fund Payable Fund Amount Sanitation General $ 108,076 General Fund receivables from the Community Development Block Grant Fund are the result of eliminating a temporary deficit cash balance. 80  CITY OF FORT WALTON BEACH, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2022 16. INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS On September 30, 2014, the City’s Sanitation Fund loaned the General Fund $500,000 to purchase a Fire Engine. The loan from the Sanitation Fund will be paid back over a 10-year period at an interest rate of 2.00%. The balance of the advance as of September 30, 2022, is $108,076. The composition of interfund transfers for the year ended September 30, 2022, was as follows: Transfers In Other Governmental Transfers Out General Fund Funds Total General Fund $ - $ 2,420,320 $ 2,420,320 Utilities Fund 1,229,877 - 1,229,877 Sanitation Fund 347,556 - 347,556 Stormwater Fund 219,650 - 219,650 $ 1,797,083 $ 2,420,320 $ 4,217,403 The transfers out of the General Fund are $2,420,320. These transfers consist of a $2,384,015 transfer to the Debt Service Fund (Other Governmental Fund) for principal and interest payments on debt, and a $36,305 transfer to the Beal Memorial Cemetery Perpetual Care Fund (Other Governmental Fund) for permanent maintenance. Transfers into the General Fund of $1,797,083 consist of franchise fees, compensation for heavy trucks wear and tear on roadways, and a portion of the debt service for the new field office complex from the enterprise funds representing their portion of use of the facility. 17. ENCUMBRANCES The amount of encumbrances outstanding as of September 30, 2022, were as follows: Governmental Funds – General Fund $ 1,784,670 Community Redevelopment Agency Fund 294,514 Other Governmental Funds 46,264 $ 2,125,448 Encumbrances at year end do not constitute expenditures or liabilities; therefore, they are not reflected in the statement of revenues, expenditures, and changes in fund balances. 81  CITY OF FORT WALTON BEACH, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2022 18. GOVERNMENTAL FUND BALANCES At September 30, 2022, the City's governmental fund balances were classified as follows: Community Other Total Redevelopment Governmental Governmental General Fund Agency Funds Funds Nonspendable Inventory $ 284,342 $ - $ - $ 284,342 Restricted for Public safety - - 1,343,836 1,343,836 Debt service - - 21,156 21,156 Improvement districts - 5,234,216 - 5,234,216 Library capital projects 117,601 - - 117,601 Discretionary sales taxes 5,651,899 - - 5,651,899 Field office complex 284,031 - - 284,031 Golf course improvements 103,662 - - 103,662 Other purposes 7,094 - - 7,094 Total restricted 6,164,287 5,234,216 1,364,992 12,763,495 Committed Affordable housing projects 1,840,000 - - 1,840,000 Cemetery maintenance 13,563 - 3,435,513 3,449,076 Natural disaster recovery 8,555,681 - - 8,555,681 Total committed 10,409,244 - 3,435,513 13,844,757 Assigned for Capital expenditures 1,757,603 - - 1,757,603 Long-term debt 850,000 - - 850,000 Other purposes 488,549 - - 488,549 Total assigned 3,096,152 - - 3,096,152 Unassigned 7,300,353 -