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

rates are calculated as of October 1, which is two years prior to the end of the fiscal year in which contributions are reported. Methods and Assumptions Used to Determine Contribution Rates: Actuarial cost method: Entry Age Normal Actuarial Cost Method Mortality rates: Healthy lives: Female: PubS.H-2010 (Below Median) for Employees,set forward one year. Male: PubS.H-2010 (Below Median) for Employees,set forward one year Disabled lives: Female: 80% PubG.H-2010 for Disabled Retirees / 20% PubS.H-2010 for Disabled Retirees Male: 80% PubG.H-2010 for Disabled Retirees / 20% PubS.H-2010 for Disabled Retirees Interest rate: 7.20% per year compounded annually, net of investment related expenses Disability rate: See table below; it is assumed that 75% of disablements and active Member deaths are service related. Termination rate: See table below; assumed rates were approved in conjunction with an actuarial experience study dated June 2017. Salary increases: See table below; assumed rates were approved in conjunction with an actuarial experience study dated June 2017. Cost-of-living increase: 3.00% per year beginning at age 58 Payroll growth: 1.49% per year, in compliance with Part VII of Chapter 112, Florida Statutes Actuarial asset All assets are valued at fair value with an adjustment made to uniformly spread method: actuarial investment gains and losses (as measured by actual fair value investment return against expected fair value investment return) over a five-year period. Salary increases: Service Years Increase 0 12.0% 1-9 6.0% 10+ 5.0% 96  CITY OF FORT WALTON BEACH, FLORIDA REQUIRED SUPPLEMENTARY INFORMATION NOTES TO THE SCHEDULE OF PENSION CONTRIBUTIONS (UNAUDITED) – CONTINUED FIREFIGHTERS’ RETIREMENT FUND Disability rate: Age Disability Rate 20 0.14% 25 0.15% 30 0.18% 35 0.23% 40 0.30% 45 0.51% 50 1.00% 55 1.55% 60 2.09% 65 2.09% Termination rate: Service Years Termination Rate 0 13.0% 1 12.0% 2 11.0% 3 10.0% 4 9.0% 5 8.0% 6 7.0% 7 6.5% 8 6.0% 9 5.5% 10 5.0% 11 4.5% 12+ 4.0% Retirement age: Member Age Retirement Probability 45 - 54 3.0% 55+ 100.0% In addition to the above table, 100% are assumed to retire upon completion of 25 years of service. The assumed rates in this table were approved in conjunction with an actuarial experience study dated June 2017. 97  CITY OF FORT WALTON BEACH, FLORIDA NON-MAJOR GOVERNMENTAL FUNDS COMBINING BALANCE SHEET SEPTEMBER 30, 2022 Special Revenue Funds Beal Law Memorial Total Law Enforcement Florida Community Cemetery Nonmajor Enforcement Trust Building Development Perpetual Governmental Trust Training Code Block Grant Care Debt Service Funds ASSETS Cash and cash equivalents $ 191,387 $ 21,895 $ 1,255,149 $ - $ 133,527 $ - $ 1,601,958 Investments - - - - 3,302,907 - 3,302,907 Due from other governments - - - 37,913 - - 37,913 Restricted assets Cash and cash equivalents - - - - - 21,156 21,156 TOTAL ASSETS $ 191,387 $ 21,895 $ 1,255,149 $ 37,913 $ 3,436,434 $ 21,156 $ 4,963,934 LIABILITIES Accounts payable $ - $ - $ 22,352 $ - $ 921 $ - $ 23,273 Accrued liabilities 84,533 - 17,710 - - - 102,243 Due to other funds - - - 57,695 - - 57,695 Total liabilities 84,533 - 40,062 57,695 921 - 183,211 FUND BALANCE Restricted 106,854 21,895 1,215,087 - - 21,156 1,364,992 Committed - - - - 3,435,513 - 3,435,513 Unassigned - - - (19,782) - - (19,782) Total fund balance 106,854 21,895 1,215,087 (19,782) 3,435,513 21,156 4,780,723 TOTAL LIABILITIES AND FUND BALANCE $ 191,387 $ 21,895 $ 1,255,149 $ 37,913 $ 3,436,434 $ 21,156 $ 4,963,934 98  CITY OF FORT WALTON BEACH, FLORIDA NON-MAJOR GOVERNMENTAL FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE FOR THE YEAR ENDED SEPTEMBER 30, 2022 Special Revenue Funds Beal Law Memorial Total Law Enforcement Florida Community Cemetery Nonmajor Enforcement Trust Building Development Perpetual Debt Governmental Trust Training Code Block Grant Care Service Funds REVENUES Permits and fees $ - $ - $ 860,555 $ - $ - $ - $ 860,555 Intergovernmental 3,477 - - 192,516 - - 195,993 Fines 330 3,858 - - - - 4,188 Investment losses, net - - - - (744,296) - (744,296) Miscellaneous 75 8 395 - 641 - 1,119 Total revenues 3,882 3,866 860,950 192,516 (743,655) - 317,559 EXPENDITURES Current Public safety 1,136 - 552,674 - - - 553,810 Physical environment - - - - 11,369 - 11,369 Economic environment - - - 192,516 - - 192,516 Capital outlay 4,100 - 27,598 - - - 31,698 Debt service Principal - - - - - 1,683,683 1,683,683 Interest - - - - - 700,332 700,332 Total expenditures 5,236 - 580,272 192,516 11,369 2,384,015 3,173,408 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES (1,354) 3,866 280,678 - (755,024) (2,384,015) (2,855,849) OTHER FINANCING SOURCES Transfers in - - - - 36,305 2,384,015 2,420,320 Total other financing sources - - - - 36,305 2,384,015 2,420,320 NET CHANGE IN FUND BALANCE (1,354) 3,866 280,678 - (718,719) -