Fort Walton Beach — Comprehensive Financial Report September 30, 2015 — reading text

CITY OF FORT WALTON BEACH, FLORIDA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2015 PREPARED BY: THE FINANCE DEPARTMENT Brandy L. Ferris, Finance Director CITY OF FORT WALTON BEACH 107 MIRACLE STRIP PARKWAY FORT WALTON BEACH, FLORIDA 32548 WWW.FWB.ORG  CITY OF FORT WALTON BEACH, FL City Council Left to right (standing): Scott Smith (Seat 1), Diane Keller (Seat 2), Amy Jamieson (Seat 5), MG Moran (Seat 6), and Dick Rynearson (Seat 7). Left to right (seated): John Mead (Seat 3), Mayor Mike Anderson, and Mike Holmes (Seat 4). Council members are elected in odd years for four year staggered terms. City Council meets on the second and fourth Tuesday of each month at 6:00 p.m. in the City Council Chambers located at 107 Miracle Strip Parkway, Fort Walton Beach, Florida. Appointed Officers Department Directors City Manager – Michael Beedie Finance Director – Brandy Ferris City Clerk – Kim Barnes Engineering & Utility Services – Tim Bolduc City Attorney – Hayward Dykes, Jr. Fire Services – Ken Perkins, Chief Human Resources – Tarey Franxman Police Services – Ted Litschauer, Chief Recreation & Cultural Services – Jeff Peters 3  CITY OF FORT WALTON BEACH, FLORIDA TABLE OF CONTENTS FOR THE YEAR ENDED SEPTEMBER 30, 2015 Page CITY OFFICIALS I. INTRODUCTORY SECTION Table of Contents i Letter of Transmittal City Manager and Finance Director iv GFOA Certificate of Achievement xi Organizational Chart xii II. FINANCIAL SECTION Independent Auditors’ Report 1 A. MANAGEMENT’S DISCUSSION AND ANALYSIS 4 B. BASIC FINANCIAL STATEMENTS Government-Wide Financial Statements Statement of Net Position 16 Statement of Activities 17 Fund Financial Statements Governmental Funds Balance Sheet 18 Reconciliation of the Balance Sheet to the Statement of Net Position 19 Statement of Revenues, Expenditures and Changes in Fund Balance 20 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balance to the Statement of Activities 21 Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - General Fund 22 Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual – Community Redevelopment Agency 23 Proprietary Funds Statement of Net Position 24 Statement of Revenues, Expenses and Changes in Net Position 26 Statement of Cash Flows 27 Fiduciary Funds Statement of Fiduciary Net Position 29 Statement of Changes in Fiduciary Net Position 30 Notes to the Financial Statements 31 i  CITY OF FORT WALTON BEACH, FLORIDA TABLE OF CONTENTS FOR THE YEAR ENDED SEPTEMBER 30, 2015 Page Schedule II. FINANCIAL SECTION (CONTINUED) C. REQUIRED SUPPLEMENTARY INFORMATION (UNAUDITED) Pension Schedules Schedules of Changes in the City’s Net Pension Liability and Related Ratios 82 Schedule of Contributions 85 Notes to the Schedule of Contributions – General Employees’ Retirement Fund 86 Notes to the Schedule of Contributions – Police Officers’ Retirement Fund 88 Notes to the Schedule of Contributions – Firefighters’ Retirement Fund 90 Schedule of Funding Progress (OPEB) 91 D. COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES Non-Major Governmental Funds Combining Balance Sheet 92 Combining Statement of Revenues, Expenditures and Changes in Fund Balance 93 Schedules of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual Law Enforcement Trust Special Revenue Fund 94 Law Enforcement Trust Training Special Revenue Fund 95 Florida Building Code Special Revenue Fund 96 Community Development Block Grant Special Revenue Fund 97 Beal Memorial Cemetery Perpetual Care Special Revenue Fund 98 Debt Service Fund 99 Non-Major Fund – Enterprise Fund Statement of Net Position 100 Statement of Revenues, Expenses and Changes in Net Position 101 Statement of Cash Flows 102 III. STATISTICAL SECTION (UNAUDITED) Net Position by Component 103 1 Changes in Net Position 104 2 Fund Balances – Governmental Funds 106 3 Changes in Fund Balances – Governmental Funds 107 4 Revenues and Other Sources 108 5 Assessed Value of Taxable Property 109 6 ii  CITY OF FORT WALTON BEACH, FLORIDA TABLE OF CONTENTS FOR THE YEAR ENDED SEPTEMBER 30, 2015 Page Schedule III. STATISTICAL SECTION (UNAUDITED) Property Tax Rates Per $1,000 of Taxable Value - All Direct and Overlapping Governments 110 7 Principal Taxpayers 111 8 Property Tax Levies and Collections 112 9 Ratios of Outstanding Debt by Type 113 10 Ratio of Net General Bonded Debt Outstanding 114 11 Pledged Revenue Coverage – Schedule of Revenue Bond Coverage 115 12 Direct and Overlapping Governmental Activities Debt – General Obligations 116 13 Major Employers 117 14 Miscellaneous Demographical Statistics 118 15 Full-Time Equivalent Employees by Function/Program 119 16 Permits, Licenses and Recreation Facilities 120 17 Elections - Okaloosa County Voter Registration 121 18 Special Assessment Billings and Collections 122 19 Major Revenue Sources 123 20 Water and Wastewater Service Rates 124 21 Sanitation and Recycling Service Rates 125 22 Operating Indicators by Function/Program 126 23 Capital Asset Statistics by Function/Program 127 24 Insurance Coverage 128 25 IV. COMPLIANCE SECTION Schedule of Receipts and Expenditures of Funds Related to the 131 Deepwater Horizon Oil Spill Schedule of Expenditures of State Financial Assistance 132 Notes to the Schedule of Expenditures of State Financial Assistance 133 Independent Auditors’ 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 134 Independent Auditors’ 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 136 Schedule of Findings and Questioned Costs 138 Independent Accountants’ Report on an Examination of Compliance Requirements in Accordance with Chapter 10.550, Rules of the 139 Auditor General Management Letter 140 iii (THIS PAGE INTENTIONALLY LEFT BLANK.)  City of Fort Walton Beach Treasure of the Emerald Coast 107 Miracle Strip Parkway, SW, Fort Walton Beach, FL 32548 (850) 833-9512 * Fax (850) 833-9640 * www.fwb.org March 2, 2016 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, 2015, 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