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

Governmental Year Ending September 30 Activities 2016 $ 39,994 2017 39,994 2018 39,994 2019 37,906 2020 6,777 Total minimum lease payments 164,665 Less amount representing interest (30,416) Present value of minimum lease payments $ 134,249 71  CITY OF FORT WALTON BEACH, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2015 14. LONG-TERM DEBT Changes in Long-Term Debt Liabilities The following is a summary of changes in long-term debt liabilities of the City for the year ended September 30, 2015: Beginning Ending Due Within Balance Additions Reductions Balance One Year Governmental activities Revenue notes payable $ 13,008,515 $ - $ (636,928) $ 12,371,587 $ 646,256 Capital leases 89,654 67,774 (23,179) 134,249 27,595 Compensated absences 715,564 667,675 (734,926) 648,313 162,078 Total governmental activities $ 13,813,733 $ 735,449 $ (1,395,033) $ 13,154,149 $ 835,929 Beginning Ending Due Within Balance Additions Reductions Balance One Year Business-type activities Revenue bonds payable $ 9,745,000 $ - $ (9,745,000) $ - $ - Less deferred amounts for issuance discounts (104,854) - 104,854 - - Revenue notes payable - 8,794,000 - 8,794,000 - State revolving loans 14,004,706 1,633,233 (325,481) 15,312,458 655,529 Compensated absences 177,905 170,416 (172,945) 175,376 43,844 Total business-type activities $ 23,822,757 $ 10,597,649 $ (10,138,572) $ 24,281,834 $ 699,373 72  CITY OF FORT WALTON BEACH, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2015 14. LONG-TERM DEBT – CONTINUED Description of Long-Term Debt Outstanding Current Long-Term Total GOVERNMENTAL ACTIVITIES Revenue Notes $8,500,000 City of Fort Walton Beach, Florida, Capital Improvement Revenue Note, Series 2013A, 2.69% interest due semi annually and principal due annually ranging from $326,969 to $464,334 through 2027 with a balloon payment of $3,000,000 due in 2028. Budgeted and appropriated half cent sales tax is pledged for payment of the bonds. Proceeds used to finance the construction of the City's new recreational complex along with the purchase of a bucket truck and a grounds sweeper for City's municipal golf course. $ 346,754 $ 7,488,607 $ 7,835,361 $4,470,610 City of Fort Walton Beach, Florida, Capital Improvement Refunding Revenue Note, Series 2013, 2.30% interest due semi annually and principal due annually ranging from $187,659 to $299,010 through 2031. Available non ad valorem revenues are pledged for payment of the bonds. Proceeds used for refunding Series 2001 revenue bonds for construction of certain capital improvements. 212,966 3,859,276 4,072,242 $739,805 City of Fort Walton Beach, Florida, Capital Improvement Revenue Note, Series 2011, due in quarterly installments of $24,449 through April 2016 then $21,156 from June 2016 through April 2021; interest at 2.55%. Available non ad valorem revenues are pledged for payment of the bonds. Proceeds used for purchase of a fire truck and golf equipment. 86,536 377,448 463,984 Total revenue notes 646,256 11,725,331 12,371,587 Leases $103,784 capital lease payable, 2013, due in monthly installments of $2,088 through August 2019, collateralized by a the City's phone system. 15,755 60,125 75,880 $67,774 capital lease payable, 2015, due in monthly installments of $1,219 through October 2019, collateralized by fitness equipment at the City's Recreation Complex. 11,840 46,529 58,369 Total leases 27,595 106,654 134,249 Accrued Compensated Absences Total long-term portion of accumulated, vested annual and sick leave for governmental fund types 162,078 486,235 648,313 TOTAL GOVERNMENTAL ACTIVITIES $ 835,929 $ 12,318,220 $ 13,154,149 73  CITY OF FORT WALTON BEACH, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2015 14. LONG-TERM DEBT – CONTINUED Description of Long-Term Debt Outstanding – Continued Current Long-Term Total BUSINESS-TYPE ACTIVITIES Revenue Notes $8,794,000 Utility System Revenue Refunding Note, Series 2015, due in annual installments of $407,000 to $645,000 beginning July 2017 through July 2033, with interest only semi-annual payments from January 2016 through January 2017; stated interest at 2.92%. Net revenues derived by the City from the utility operations are pledged for the payment of the bonds. Proceeds used to refinance and refund the Utility System Revenue Bonds, Series 2005, which was for water system and wastewater system improvements. $ - $ 8,794,000 $ 8,794,000 State Revolving Loans $15,637,939 State of Florida Department of Environmental Protection Revolving Loan Fund; semi annual payments of $480,885 including interest at 1.90% beginning February 2016, through August 2034. Proceeds used for force main replacement, storage tank construction and pump station upgrades. 655,529 14,656,929 15,312,458 Accrued Compensated Absences Accumulated, vested annual compensation for Enterprise Funds 43,844 131,532 175,376 TOTAL BUSINESS-TYPE ACTIVITIES $ 699,373 $ 23,582,461 $ 24,281,834 GRAND TOTAL LONG-TERM DEBT $ 37,435,983 For the governmental activities, compensated absences are generally liquidated by the General Fund. Annual Requirements to Amortize Debt Outstanding The annual requirements to amortize all debt outstanding except accrued and annual leave and advances from other funds as of September 30, 2015, are as follows: Governmental Activities Leases Revenue Notes Year Ending September 30 Principal Interest Principal Interest 2016 $ 27,595 $ 12,565 $ 646,256 $ 331,610 2017 30,115 9,576 651,675 315,400 2018 33,476 6,215 664,711 299,112 2019 35,170 2,432 682,573 282,526 2020 7,893 41 700,401 265,599 2021-2025 - - 3,402,788 1,068,812 2026-2030 - - 5,324,173 561,053 2031 - - 299,010 20,516 Total $ 134,249 $ 30,829 $ 12,371,587 $ 3,144,628 74  CITY OF FORT WALTON BEACH, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2015 14. LONG-TERM DEBT – CONTINUED Annual Requirements to Amortize Debt Outstanding – Continued Business-Type Activities Revenue Note State Revolving Loan Year Ending September 30 Principal Interest Principal Interest 2016 $ - $ 256,785 $ 655,529 $ 251,943 2017 407,000 250,843 687,488 274,201 2018 419,000 238,783 700,613 261,077 2019 431,000 226,373 713,988 247,702 2020 444,000 213,598 727,618 234,072 2021-2025 2,420,000 863,006 3,851,825 956,624 2026-2030 2,793,000 483,070 4,233,795 574,654 2031-2035 1,880,000 89,396 3,741,602 159,374 Total $ 8,794,000 $ 2,621,854 $ 15,312,458 $ 2,959,647 Refunding On July 1, 2015, the City issued $8,794,000 of a Utility System Revenue Refunding Note, Series 2015, with a fixed interest rate of 2.92% for the purpose of current refunding the remaining outstanding principal on its Utility System Revenue Bonds, Series 2005, which bore interest ranging from 3.10% to 4.60%. The refunding was undertaken to take advantage of favorable interest rates. The cash flow requirement of the refunded 2005 bonds, prior to the refunding, was $14,437,624 from July 1, 2016 to July 1, 2035. The cash flow requirements of the 2015 refunding note are $11,537,245. The current refunding resulted in an economic gain (difference between the present value of the debt service payments on the old and new debt)