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

$ 53,080 2017 54,673 2018 56,313 2019 58,002 2020 59,742 2021 through 2025 326,695 2026 through 2030 378,730 2031 through 2035 439,051 2036 through 2039 401,080 Total $ 1,827,366 Fees paid for wastewater treatment to Okaloosa County, Florida during the year ended September 30, 2015, were $2,148,490. 80  CITY OF FORT WALTON BEACH, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2015 20. CHANGE IN ACCOUNTING PRINCIPLE – RESTATEMENT OF NET POSITION The GASB issued Statement No. 68, Accounting and Financial Reporting for Pensions – an Amendment of GASB Statement No. 27. (GASB 68) as well as Statement No. 71, Pension Transition for Contributions Made Subsequent to the Measurement Date – an amendment to GASB Statement No. 68 (GASB 71), effective for fiscal years beginning after June 15, 2014. The primary objective of these statement are to improve accounting and financial reporting by state and local governments for pensions. The impact of the City’s adoption of GASB 68 and GASB 71 in fiscal year 2015 requires the City to restate the beginning net position in both governmental activities as well as business-type activities statement of activities and the proprietary funds statement of revenues, expenses, and changes in net position in the amount of the net pension liability, deferred outflows of resources, and deferred inflows of resources related to pension as of October 1, 2014. The City’s beginning net positions were decreased $13,392,798 as detailed below: Business-Type Activities Governmental Sanitation Stormwater Activities Utilities Fund Fund Fund Net positions, as previously reported $ 40,404,449 $ 19,705,722 $ 3,571,001 $ 1,611,368 Restatement (12,463,443) (620,144) (250,121) (59,090) Net positions, restated $ 27,941,006 $ 19,085,578 $ 3,320,880 $ 1,552,278 81 (THIS PAGE INTENTIONALLY LEFT BLANK.)  CITY OF FORT WALTON BEACH, FLORIDA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS (UNAUDITED) GENERAL EMPLOYEES’ RETIREMENT FUND Measurement Date 2014 Total Pension Liability Service cost $ 622,382 Interest 3,222,809 Differences between expected and actual experience - Benefit payments, including refunds of employee contributions (2,575,304) Net change in total pension liability 1,269,887 Total pension liability – beginning 41,460,324 Total pension liability – ending (a) $ 42,730,211 Plan Fiduciary Net Position Contributions – employer $ 1,296,450 Contributions – state 212,790 Net investment income 3,228,153 Benefit payments, including refunds of employee contributions (2,575,304) Administrative expenses (42,483) Net change in plan fiduciary net position 2,119,606 Plan fiduciary net position – beginning 37,122,638 Plan fiduciary net position – ending (b) $ 39,242,244 Net pension liability – ending (a) – (b) $ 3,487,967 Plan fiduciary net position as a percentage of the total pension liability 91.84% Covered employee payroll $ 4,255,801 Net pension liability as a percentage of covered employee payroll 81.96% Notes to schedule: This information is not available for previous years. The General Employees Pension Plan was closed to new entrants effect December 31, 2009. Benefit changes: No changes in benefits. Changes of assumptions: Change in enrolled actuary. 82  CITY OF FORT WALTON BEACH, FLORIDA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS (UNAUDITED) POLICE OFFICERS’ RETIREMENT FUND Measurement Date 2014 Total Pension Liability Service cost $ 322,118 Interest 1,905,286 Differences between expected and actual experiences - Benefit payments, including refunds of employee contributions (1,632,053) Net change in total pension liability 595,351 Total pension liability – beginning 24,413,051 Total pension liability – ending (a) $ 25,008,402 Plan Fiduciary Net Position Contributions – employer $ 836,053 Contributions – state 175,703 Contributions – member 96,591 Net investment income 1,869,244 Benefit payments, including refunds of employee contributions (1,632,053) Administrative expenses (38,242) Net change in plan fiduciary net position 1,307,296 Plan fiduciary net position – beginning 19,156,156 Plan fiduciary net position – ending (b) $ 20,463,452 Net pension liability – ending (a) – (b) $ 4,544,950 Plan fiduciary net position as a percentage of the total pension liability 81.83% Covered employee payroll $ 1,975,478 Net pension liability as a percentage of covered employee payroll 230.07% Notes to schedule: This information is not available for previous years. Benefit changes: No changes in benefits. Changes of assumptions: No changes in assumptions. 83  CITY OF FORT WALTON BEACH, FLORIDA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS (UNAUDITED) FIREFIGHTERS’ RETIREMENT FUND Measurement Date 2014 2013 Total Pension Liability Service cost $ 414,836 $ 384,107 Interest 1,425,875 1,367,809 Change in excess state money 89,886 Changes of benefit terms - - Differences between expected and actual experiences - - Contributions – buy back - - Benefit payments, including refunds of employee contributions (1,071,302) (1,042,333) Net change in total pension liability 859,295 709,583 Total pension liability – beginning 18,336,190 17,626,607 Total pension liability – ending (a) $ 19,195,485 $ 18,336,190 Plan Fiduciary Net Position Contributions – employer $ 715,439 $ 703,618 Contributions – state 214,272 204,226 Contributions – member 135,622 133,633 Contributions – buy back - - Net investment income 1,201,162 1,099,298 Benefit payments, including refunds of employee contributions (1,071,302) (1,042,333) Administrative expenses (34,537) (33,706) Other - - Net change in plan fiduciary net position 1,160,656 1,064,736 Plan fiduciary net position – beginning 12,501,663 11,436,927 Plan fiduciary net position – ending (b) $ 13,662,319 $ 12,501,663 Net pension liability – ending (a) – (b) $ 5,533,166 $ 5,834,527 Plan fiduciary net position as a percentage of the total pension liability 71.17% 68.18% Covered employee payroll $ 2,054,879 $ 2,054,879 Net pension liability as a percentage of covered employee 269.27% 283.94% Notes to schedule: The information is not available for previous years. Benefit changes: No changes in benefits. Changes of assumptions: No changes in assumptions. 84  CITY OF FORT WALTON BEACH, FLORIDA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF CONTRIBUTIONS (UNAUDITED) LAST TEN FISCAL YEARS 2015 2014 2013 2012 2011 2010 2009