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

inflation on the cost of providing municipal services.  The Consumer Confidence Index is 17.4% higher than last year. This indicator measures economic conditions by gauging the future spending of consumers.  The Leading Economic Index is designed to signal turning point patterns in economic data and has increased 2.1% over the past six months; however, this increase is slower than the growth of 3.2% the previous six months.  The military has a significant presence in our community. These installations are essential to the continued long-term economic vitality of this area. Combined, the military and defense-related industries have a $6.0 billion annual impact on Okaloosa County’s economy, with approximately 73% of our local economy supported by the military. These indicators, as well as others, were taken into account when adopting the City’s budget for fiscal year 2016. The City’s budget for fiscal year 2016 totals $37.8 million, which is $647,397 higher than the fiscal year 2015 approved budget, due to increased operating expenses throughout the City. The 2016 budget allocates $19.2 million, a 3.08% increase as compared to the fiscal year 2015 budget, to the General fund, $14.9 million to the Enterprise funds, and $3.7 million to other funds. 14  For the fiscal year 2016 budget, the ad valorem rate was maintained at 5.7697 mills. A 9.5% increase in water and sewer rates is included in the budget, and stormwater fees are scheduled to increase $0.75. No other significant changes to the City’s various rate and fees are included in the fiscal year 2016 budget. Personnel expenses account for approximately 47.1% of the City’s budget. The City’s fiscal year 2016 budget remains relatively stable in this category, at 292.03 full time equivalent positions. REQUESTS FOR INFORMATION This financial report is designed to provide citizens, taxpayers, customers, and creditors with a general overview of the City of Fort Walton Beach’s finances and to demonstrate the City’s accountability for the money it receives. Questions concerning any of the information provided in this report, or requests for additional information, should be addressed to the Finance Director, 107 Miracle Strip Parkway S.W., City of Fort Walton Beach, Florida, 32548. This document and other financial information are available on the City’s website at www.fwb.org. Inquiries may also be sent via email to the Finance Department at finance@fwb.org. 15  CITY OF FORT WALTON BEACH, FLORIDA STATEMENT OF NET POSITION SEPTEMBER 30, 2015 Primary Government Governmental Business-Type Activities Activities Total ASSETS Cash and cash equivalents $ 14,297,171 $ 12,190,716 $ 26,487,887 Investments 2,229,208 - 2,229,208 Receivables, net 208,658 817,362 1,026,020 Internal balances (454,337) 454,337 - Due from other governments 118,171 35,542 153,713 Inventory, at cost 250,580 14,774 265,354 Restricted assets Cash and cash equivalents 25,449 799,403 824,852 Other assets Other receivables, net 787,100 6,501 793,601 Capital assets Non-depreciable/amortizable 11,853,401 1,144,180 12,997,581 Depreciable/amortizable, net 28,096,311 34,828,971 62,925,282 TOTAL ASSETS 57,411,712 50,291,786 107,703,498 DEFERRED OUTFLOWS OF RESOURCES 2,242,304 513,714 2,756,018 LIABILITIES Accounts payable 1,254,831 544,406 1,799,237 Accrued liabilities 731,226 160,443 891,669 Due to other governments 77,159 8,258 85,417 Unearned revenues 25,400 32,979 58,379 Payable from restricted assets Accrued interest 79,063 - 79,063 Customer deposits - 259,441 259,441 Non-current liabilities Due within one year Compensated absences 162,078 43,844 205,922 Leases payable 27,595 - 27,595 Revenue notes payable 646,256 - 646,256 State revolving loans payable - 655,529 655,529 Due in more than one year Compensated absences 486,235 131,532 617,767 Leases payable 106,654 - 106,654 Revenue notes payable 11,725,331 8,794,000 20,519,331 State revolving loans payable - 14,656,929 14,656,929 Other post-employment benefits 995,350 285,581 1,280,931 Net pension liability 12,500,212 1,065,874 13,566,086 TOTAL LIABILITIES 28,817,390 26,638,816 55,456,206 DEFERRED INFLOWS OF RESOURCES 637,967 82,937 720,904 NET POSITION Net investment in capital assets 27,443,877 12,886,793 40,330,670 Restricted Debt service 25,449 157,228 182,677 System improvements - 382,734 382,734 Improvement districts 1,874,265 - 1,874,265 Public safety 507,625 - 507,625 Other purposes 187,575 - 187,575 Unrestricted 159,868 10,656,992 10,816,860 TOTAL NET POSITION $ 30,198,659 $ 24,083,747 $ 54,282,406 See notes to the financial statements. 16  CITY OF FORT WALTON BEACH, FLORIDA STATEMENT OF ACTIVITIES FOR THE YEAR ENDED SEPTEMBER 30, 2015 Net (Expense) Revenue and Changes in Net Position Program Revenues Primary Government Charges for Operating Grants Capital Grants and Governmental Business-Type Function/program activities Expenses Services and Contributions Contributions Activities Activities Total Governmental activities General government $ 2,735,875 $ 421,987 $ 6,748 $ - $ (2,307,140) $ - $ (2,307,140) Public safety 9,562,140 490,379 416,633 10,356 (8,644,772) - (8,644,772) Physical environment 379,334 409,253 - - 29,919 - 29,919 Transportation 1,474,209 140,809 - - (1,333,400) - (1,333,400) Economic environment 1,813,782 5,000 405,566 - (1,403,216) - (1,403,216) Culture and recreation 4,601,503 1,930,131 80,514 514,964 (2,075,894) - (2,075,894) Debt service interest 340,497 - - - (340,497) - (340,497) Total governmental activities 20,907,340 3,397,559 909,461 525,320 (16,075,000) - (16,075,000) Business-type activities Utilities 9,205,259 9,233,820 - 52,255 - 80,816 80,816 Sanitation 3,319,760 3,582,005 - - - 262,245 262,245 Stormwater 460,314 694,581 - 35,542 - 269,809 269,809 Total business-type activities 12,985,333 13,510,406 - 87,797 612,870 612,870 Total primary government $ 33,892,673 $ 16,907,965 $ 909,461 $ 613,117 $ (16,075,000) $ 612,870 $ (15,462,130) General revenues Taxes Property taxes $ 5,473,438 $ - $ 5,473,438 Sales taxes 2,557,062 - 2,557,062 Utility service taxes 4,036,009 - 4,036,009 Tax increments for redevelopment districts 1,552,560 - 1,552,560 Franchise fees 2,162,617 - 2,162,617 Intergovernmental, unrestricted 896,837 - 896,837 Gain on sale of assets 524,720 716 525,436 Miscellaneous