Annual Comprehensive Financial Report
BudgetAI Summary
The City of Tallahassee's Annual Comprehensive Financial Report for the fiscal year ended September 30, 2024, presents the city's complete financial position, including government-wide and fund-specific financial statements, along with management analysis and required supplementary information on budgets and pension liabilities. The report was prepared by the Financial Reporting Division of the Financial Services Department and includes an independent auditor's report, detailed financial statements across governmental, proprietary, and fiduciary funds, and notes to the financial statements. The document demonstrates the city's financial reporting practices and compliance with accounting standards.
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FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 Annual Comprehensive Financial Report Florida’s Capital City -- 1 of 220 -- -- 2 of 220 -- For The Fiscal Year Ended September 30, 2024 Prepared By: Financial Reporting Division Financial Services Department CITY OF TALLAHASSEE, FLORIDA Annual Comprehensive Financial Report -- 3 of 220 -- 4 ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 City of Tallahassee City of Tallahassee, Florida City Commission John E. Dailey Mayor Dianne Williams-Cox Mayor Pro Tem Jeremy Matlow Commissioner Curtis Richardson Commissioner Jacqueline Porter Commissioner Reese Goad City Manager Cynthia Barber Deputy City Manager Christian Doolin Assistant City Manager Wayne Tedder Assistant City Manager Karen Jumonville Assistant City Manager Abena Ojetayo Assistant City Manager Dennis R. Sutton Inspector General Jim Cooke City Treasurer-Clerk Amy Toman City Attorney -- 4 of 220 -- ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 5 CITY OF TALLAHASSEE, FLORIDA Table of Contents Introductory Section Letter of Transmittal 10 Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting 14 Organizational Chart 15 List of City Officials and Directors 16 List of Financial Services Staff 17 Financial Section Independent Auditor’s Report 20 Management’s Discussion and Analysis 23 Basic Financial Statements Government-wide Financial Statements: Statement of Net Position 38 Statement of Activities 40 Fund Financial Statements: Governmental Funds Financial Statements: Balance Sheet 42 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position 43 Statement of Revenues, Expenditures and Changes in Fund Balance 44 Reconciliation of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities 45 Proprietary Funds Financial Statements: Statement of Net Position 46 Statement of Revenues, Expenses and Changes in Net Position 48 Statement of Cash Flows 50 Fiduciary Funds Financial Statements: Statement of Net Position 52 Statement of Changes in Net Position 53 Notes to Financial Statements: Notes to the Financial Statements 56 Required Supplementary Information (Other than MD&A): Budgetary Comparison Schedule - General Fund 114 Note to Required Supplementary Information - General Fund 115 Schedule of Changes in the Employer’s Net Pension Liability and Related Ratios - General 116 Schedule of Net Position Liability by Employees - General Employees 117 Schedule of Contributions - General Employees 118 Notes Schedule of Contributions - General Employees 118 Schedule of Changes in the Employer’s Net Position Liability and Related Ratios - Police Officers 119 Schedule of Contributions - Police Officers 120 Notes to Schedule of Contributions - Police Officers 120 Schedule of Changes in the Employer’s Net Pension Liability and Related Ratios - Firefighters 121 Schedule of Contributions - Firefighters 122 -- 5 of 220 -- 6 ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 CITY OF TALLAHASSEE, FLORIDA Table of Contents Notes to Schedule of Contributions - Firefighters 122 Schedule of Investment Returns - Pension Plans 123 Schedule of Changes in Net OPEB Liability and Related Ratio 124 Schedule of Net OPEB Liability 125 Notes to Schedule of Net OPEB Liability 125 Schedule of Contributions - OPEB 126 Notes to Schedule of Contributions - OPEB 126 Schedule of Investment Returns - OPEB 127 Combining Financial Statements: Nonmajor Governmental Funds: Balance Sheet 132 Statement of Revenues, Expenditures, and Changes in Fund Balance 134 Nonmajor Enterprise Funds: Statement of Net Position 137 Statement of Revenues, Expenses, and Changes in Net Position 138 Statement of Cash Flows 139 Internal Service Funds: Statement of Net Position 142 Statement of Revenues, Expenses, and Changes in Net Position 144 Statement of Cash Flows 146 Pension and Other Employee Benefit Trust Funds: Statement of Net Position 150 Statement of Changes in Net Position 151 Supplemental Information: Capital Refunding Revenue Bonds, Series 2009 154 Capital Bonds, Series 2018 155 Capital Bonds, Series 2021 156 Capital Refunding Bonds, Series 2022 157 Capital Bonds, Series 2024 158 Energy System Refunding Revenue Bonds, Series 2017 159 Energy System Refunding Revenue Bonds, Series 2020 160 Energy System Refunding Revenue Bonds, Series 2023 161 Energy System Refunding Revenue Bonds, Series 2024 162 Consolidated Utility System Revenue Bonds, Series 2018 163 Consolidated Utility System Refunding Revenue Bonds, Series 2020 164 Consolidated Utility System Refunding Revenue Bonds, Series 2023 165 Consolidated Utility System Refunding Revenue Bonds, Series 2024 166 Consolidated Utility System Refunding Revenue Bonds, Series 2024A 167 Transportation Improvement Bond, Series 2019 168 -- 6 of 220 -- ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 7 CITY OF TALLAHASSEE, FLORIDA Table of Contents Statistical Section Net Position by Component 172 Changes in Net Position 173 Fund Balances, Governmental Funds 176 Changes in Fund Balances, Governmental Funds 177 Assessed Value and Estimated Actual Value of Taxable Property 178 Direct and Overlapping Property Tax Rates 179 Principal Property Taxpayers 180 Property Tax Levies and Collections 181 Assessed Valuations, Millage, and Taxes Levied and Collected 182 Ratios of Outstanding Debt by Type 183 Ratios of General Bonded Debt Outstanding 184 Direct and Overlapping Governmental Activities Debt 185 Legal Debt Margin 186 Revenue Bond Coverage - Energy Revenue Bonds 187 Revenue Bond Coverage - Consolidated Utility Revenue Bonds 188 Demographic Statistics 189 Principal Employers 190 Full-time Equivalent City Government Employees by Function/Program 191 Operating Indicators by Function/Program 192 Capital Asset Statistical by Function/Program 193 Miscellaneous Statistical Data 194 Schedule of Insurance 195 Single Audit and Other Reports Independent Auditor’s Report on Internal Control Over Financial Reporting and Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 200 Independent Auditor’s Report on Compliance for Each Major Federal Program, Major State Project, and the Passenger Facility Charge Program and on Internal Control Over Compliance and Report on Schedule of Expenditures of Federal Awards and State Financial Assistance and Schedule of Passenger Facility Charges Required by the Uniform Guidance, Chapter 10.550, Rules of the Auditor General, and Passenger Facility Charge Audit Guide for Public Agencies 202 Schedule of Expenditures of Federal Awards and State Financial Assistance 208 Schedule of Expenditures of Passenger Facility Charges 213 Independent Accountants’ Report 214 Independent Auditors’ Management Letter 215 -- 7 of 220 -- 8 ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 This Page Intentionally Left Blank -- 8 of 220 -- ANNUAL FINANCIAL REPORT CITY OF ATLANTIS ANNUAL FINANCIAL REPORT RADFORD UNIVERSITY Annual Comprehensive Financial Report CITY OF TALLAHASSEE, FLORIDA INTRODUCTORY SECTION -- 9 of 220 -- City of Tallahassee InTRODuCTORY SECTIOn 10 April 30, 2025 Honorable Mayor, Commissioners, City Manager, and the citizens of the City of Tallahassee, Florida The Annual Comprehensive Financial Report of the City of Tallahassee, Florida, for the fiscal year ended September 30, 2024 , is hereby submitted pursuant to Section 11.45, Florida Statutes and Chapter 10.550 of the Rules of the Auditor General of the State of Florida. This report represents the official report of the City’s financial operations and condition to the citizens, City Commission, City management, rating agencies, and other interested persons. Management assumes full responsibility for the completeness and reliability of the information contained in this report, based upon a comprehensive framework of internal control that it has established for this purpose. Because the cost of internal control should not exceed anticipated benefits, the objective is to provide reasonable, but not absolute, assurance that the financial statements are free of any material misstatements. The certified public accounting firm of Forvis Mazars, LLP has issued an unmodified opinion on the City’s financial statements for the year ended September 30, 2024. The independent auditors’ report is located at the front of the financial section of this report. The City is also required to undergo an annual audit to obtain reasonable assurance about compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major federal programs and state projects. These independent auditors’ reports are presented in the single audit section of this report. Management’s Discussion and Analysis (MD&A) immediately follows the independent auditors’ report and provides a narrative introduction, overview, and analysis of the basic financial statements. This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. Profile of the City Tallahassee, the capital city of Florida, was incorporated in 1825, twenty years before Florida was admitted to the Union. The city is governed by a mayor and four Commissioners elected at-large. The City Commission appoints the City Manager, the City Treasurer-Clerk, the City Inspector General, and the City Attorney. Collectively the appointed officials are responsible for all administrative aspects of the government, with most falling under the purview of the City Manager. The city provides a full range of municipal services. These services include public safety (police and fire), construction and maintenance of streets and sidewalks, stormwater management, recreation, planning and zoning, general administrative services, five utilities (electric, gas, water, sewer, and solid waste collection), a mass transit bus system, and an international airport. The Commission is required to adopt a final budget no later than the close of the fiscal year. This annual budget serves as the foundation for the City’s financial planning and control. The budget is approved at the fund level. Transfers between funds require approval by the Commission. The budget process is a formalized annual occurrence that involves input, collaboration, and coordination between the respective City departments, the Office of Resource Management, the executive team, the City Commission, and the citizens of Tallahassee. -- 10 of 220 -- City of Tallahassee InTRODuCTORY SECTIOn 11 A budget review team composed of various members of the leadership and executive teams is established to set budget direction and priorities for the City. Annually, issues are selected by the City Commission to represent those programs and community needs, which are to be given priority attention during the year. Prior to the development of the budget, citizen input is solicited using a citizen survey, on any program changes as well as on performance of all major programs. Factors Affecting Financial Condition The economy of Leon County is strongly influenced by governmental and educational activities. The presence of the State Capital and two major universities help to shape Leon County’s population as relatively young, well educated, and affluent. Leon County is a racially diverse community. Minorities account for 39% of the population, with African-Americans comprising 32.1%. Leon County residents have historically attained a very high level of education. Approximately forty-nine percent of area residents aged 25 or older have completed at least four years of college. The 2020-2024 American Community Survey 5-year estimates report median family income in Leon County is $65,074, which is comparable to the national median. The level of governmental employment has a stabilizing effect on the economy and helps to minimize unemployment. In December 2024, the unemployment rate was 3.2% in the city as compared to the State’s unemployment rate of 3.4%. The percentage of employees employed by local, state, and federal government is approximately 31.48% of the work force. The unemployment rate is one of many economic indicators utilized to evaluate the condition of the economy. Population Growth Population growth trends for Leon County are presented in the following table: Year Tallahassee Unincorporate Leon 1960 48,174 26,051 74,225 1970 71,897 31,150 103,047 1980 81,548 67,107 148,655 1990 124,773 67,720 192,493 2000 150,624 88,828 239,452 2010 181,736 94,111 275,487 2020 196,169 96,029 292,198 2025 208,600 98,000 306,600 2030 217,800 99,400 317,200 2035 225,400 100,700 326,100 2040 231,100 101,600 332,700 2045 236,000 102,300 338,300 2050 240,300 103,000 343,300 -- 11 of 220 -- City of Tallahassee InTRODuCTORY SECTIOn 12 Construction Trends Residential Construction Single-family residential building permits in Leon County were down 9% in fiscal year 2024, following a 7% increase in fiscal year 2023. Permits for multi-family units were down 73% in fiscal year 2024 following an 81% increase in fiscal year 2023. Year-over-year new multi-family construction can be volatile given the number of units included in each development. Commercial Development In fiscal year 2024 more than $279 million in new commercial construction was permitted in Leon County, above the approximately $116 million permitted in fiscal year 2023. The largest new commercial construction permits in fiscal year 2024 include the estimated $135 million, 208,400 square foot State Emergency Operations Center and the $10 million, 42,028 square foot Aero Center FBO Hangar at Tallahassee International Airport. Millage Rates As indicated below, the city had the lowest millage rate of the comparable largest cities in Florida for 2024 and 2023. Tallahassee’s low and stable millage rate should act as an incentive to economic growth and stability. Millage Rates Comparable City 2024 2023 Clearwater 5.89 5.89 Daytona 5.43 5.43 Fort Lauderdale 4.40 4.40 Gainesville 6.43 5.50 Hollywood 7.47 7.47 Lakeland 5.43 5.43 Largo 5.52 5.52 Orlando 6.65 6.65 Pensacola 4.29 4.29 Tallahassee 4.45 4.10 West Palm Beach 8.20 8.20 Long-Term Financial Planning The financial viability of the City continues to be a high priority for the City Commission and management. An integral part of the budgeting process is the development of the City’s Five-Year Financial Plan (the Plan). The Plan is updated annually during the budget process and serves as a blueprint for decision-making and allows for flexibility to address issues as they arise. The Plan resulted in an approved fiscal year 2024 operating budget of $868.4 million and an approved capital budget of $253.1 million. The Plan for the ensuing five years (including 2024) results in projected capital expenditures of approximately $1.1 billion. -- 12 of 220 -- City of Tallahassee InTRODuCTORY SECTIOn 13 Awards and Acknowledgement The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Tallahassee, Florida for its Annual Comprehensive Financial Report for the fiscal year ended September 30, 2023. The Certificate of Achievement is a prestigious national award that recognizes conformance with the highest standards for preparation of state and local government financial reports. To be awarded a Certificate of Achievement, the City must publish an annual comprehensive financial report, whose contents satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe our current report continues to conform to Certificate of Achievement Program requirements, and we are submitting it to the GFOA to determine its eligibility for a new certificate. The preparation of this report on a timely basis could not be accomplished without the efficient and dedicated services of the entire staff of the Financial Reporting Division who participated in the compilation of the report. We would also like to thank the members of the City Commission for their interest and support in planning and conducting the financial operations of the City in a responsible and progressive manner. Respectfully submitted, Abena Ojetayo Assistant City Manager Patrick Twyman Director of Financial Services -- 13 of 220 -- 14 ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to City of Tallahassee Florida For its Annual Comprehensive Financial Report For the Fiscal Year Ended September 30, 2023 Executive Director/CEO -- 14 of 220 -- ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 15 City of Tallahassee In TR oDUCT oRY Se CTI on -- 15 of 220 -- 16 ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 City of Tallahassee InTRODuCTORY SECTIOn List of City officials and Directors elected officials Mayor John E. Dailey Mayor Pro Tem Dianne Williams-Cox Commissioner Curtis Richardson Commissioner Jacqueline “Jack” Porter Commissioner Jeremy Matlow Appointed officials City Manager Reese Goad City Treasurer-Clerk Jim Cooke City Attorney Amy Toman Inspector General Dennis R. Sutton Deputy City Manager and Assistant City Managers Deputy City Manager Cynthia Barber Assistant City Manager Christian Doolin Assistant City Manager Karen Jumonville Assistant City Manager Abena Ojetayo Assistant City Manager Wayne Tedder Department Directors Aviation - Director David Pollard City Construction - Director John Powell Communications - Director Alison Faris Community Beautification & Waste Management - Director Reginald Ofuani Community Redevelopment Agency - Director Stephen Cox Customer Operations - Chief Customer Officer James Barnes Diversity & Inclusion - Chief Diversity Officer Angela Hendrieth Electric & Gas Utility - General Manager Tony Guillen Environmental Services - Director Alissa Meyers Financial Services - Director Patrick Twyman Facilities - Director Ubie Brantley Fire Chief Gene Sanders Fleet - Director Jeff Shepard Golf Courses - General Manager Buddy Driggers Grants & Enterprise Resources - Director Roberta McManus Growth Management - Director John Reddick Housing & Community Resilience - Director Kimball Thomas Human Resources - Interim Director Rob McGarrah Parks, Recreation & Neighborhood Affairs - Director Ashley Edwards PLACE - Director Artie White Police Chief Lawrence Revell Procurement - Director Veronica McCrackin Resource Management - Director Robert Wigen StarMetro - Director Angela Baldwin Strategic Innovation - Director Thomas Whitley Technology & Innovation - Director Tim Davis Underground Utilities & Public Infrastructure - Director Steve Shafer -- 16 of 220 -- ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 17 City of Tallahassee InTRODuCTORY SECTIOn The Annual Comprehensive Financial Report for the City of Tallahassee, Florida was produced by the combined efforts of the Financial Reporting Division of the Financial Services Department as well as the accounting staff of the Tallahassee International Airport and the Grants Management Division. The following staff had primary responsibility for preparing and ensuring the accuracy of this report. Assistant City Manager Abena Ojetayo Director of Financial Services Patrick Twyman Director of Grants & enterprise Resources Roberta McManus, CPA Manager, Financial Reporting Rita Stevens, CPA Financial Reporting Staff Linda Caines, CGFM Kereen Jones Lajja Patel, CPA,CGFM,CPM Deanne Foy Lynda Hutto Latrenda Johnson Amber Malloy Vernessa McMillon Julie Paniucki Brandon Perry Angela Roberts Emerson Thompson Josalind Williams Vanessa Williams, CPA^ Shenika McNear^ Kristina Seymour^ Laquinda Williams^ Ben Halvorsen, CPA* * Tallahassee International Airport Staff ^ Grants Management Staff -- 17 of 220 -- 18 ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 This Page Intentionally Left Blank -- 18 of 220 -- ANNUAL FINANCIAL REPORT CITY OF ATLANTIS ANNUAL FINANCIAL REPORT RADFORD UNIVERSITY Annual Comprehensive Financial Report CITY OF TALLAHASSEE, FLORIDA FINANCIAL SECTION -- 19 of 220 -- 20 ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 City of Tallahassee FInAnCIAL SECTIOn Forvis Mazars, LLP is an independent member of Forvis Mazars Global Limited Independent Auditor’s Report The Honorable Mayor and City Commission City of Tallahassee, Florida Tallahassee, Florida Report on the Audit of the Financial Statements Opinions We have audited the financial statements of the governmental activities, the business-type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of the City of Tallahassee, Florida (the “City”) as of and for the year ended September 30, 2024, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements, as listed in the table of contents. In our opinion, the accompanying financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of the City as of September 30, 2024, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America (“GAAS”) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States (Government Auditing Standards). Our responsibilities under those standards are further described in the “Auditor’s Responsibilities for the Audit of the Financial Statements” section of our report. We are required to be independent of the City, and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for 12 months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. -- 20 of 220 -- ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 21 City of Tallahassee FInAnCIAL SECTIOn The Honorable Mayor and City Commission City of Tallahassee, Florida Auditor’s Responsibility for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with GAAS and Government Auditing Standards, we: • Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed. • Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. • Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during that audit. Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, the budgetary comparison schedule – general fund, pension and the other postemployment benefit information be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with GAAS, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. -- 21 of 220 -- 22 ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 City of Tallahassee FInAnCIAL SECTIOn The Honorable Mayor and City Commission City of Tallahassee, Florida Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements as a whole. The combining fund financial statements, the supplemental information schedules and the schedule of expenditures of federal awards, as required by Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, are presented for purposes of additional analysis and are not a required part of the financial statements. The combining and individual fund financial statements and schedules are the responsibility of management and were derived from, and relate directly to, the underlying accounting and other records used to prepare the financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with GAAS In our opinion, the combining and individual fund statements and schedules and the schedule of expenditures of federal awards are fairly stated, in all material respects, in relation to the financial statements as a whole. Other Information Management is responsible for the other information included in the annual comprehensive financial report. The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditor’s report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon. In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated April 30, 2025, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance. Tallahassee, Florida April 30, 2025 -- 22 of 220 -- ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 23 City of Tallahassee FInAnCIAL SECTIOn Management’s Discussion and Analysis (unaudited) As management of the City of Tallahassee (the “City”), we offer readers of the City’s financial statements this narrative overview and analysis of the financial activities of the City for the fiscal year that ended September 30, 2024. Management’s Discussion and Analysis is designed to: (a) assist the reader in focusing on significant financial issues, (b) provide an overview of the City’s financial activities, (c) identify changes in the City’s financial position, and (d) identify individual fund concerns or issues. It should be read in conjunction with the Transmittal Letter at the front of this report and the City’s financial statements, which follow this section. Notes mentioned below are Notes to the Financial Statements, which follow the statements. Financial Highlights ● The assets and deferred outflows of resources of the City exceeded its liabilities and deferred inflows of resources as of September 30, 2024 by $2.0 billion. After accounting for net position reserved for Investment in Capital Assets and for other restrictions, the unrestricted net position is $16.8 million. ● The City’s total net position increased by $37.1 million as a result of fiscal year 2024 operations. ● As of September 30, 2024, the City’s governmental funds reported combined ending fund balances of $180.7 million, an increase of $84.3 million from the prior year. This increase is primarily the result of the City issuing a $65 million bond for capital improvements and a $25 million loan to construct a new senior center. There was no governmental funds fund balance available for spending at the City’s discretion. ● At the end of the fiscal year, unassigned fund balance for the general fund was $1.2 million, or 0.7% of general fund expenditures. ● As of September 30, 2024, the City’s enterprise funds reported a combined net position of $1.31 billion, an increase of $34.3 million from the prior year. This increase is the net result from current year operations. Approximately $145.4 million of the net position is unrestricted. ● Capital assets, net of accumulated depreciation, as of September 30, 2024, totaled $2.51 billion, a decrease of $7.5 million in comparison with prior year (Note IV.D.). ● The City’s outstanding long-term debt (Note IV.H.) increased from $1.19 billion to $1.34 billion, or 12.7%. An overview of the Financial Statements The City’s basic financial statements are comprised of three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements. Government-Wide Financial Statements The government-wide financial statements are designed to report information about the City as a whole using accounting methods similar to those used by private-sector companies. Two statements, the statement of net position and the statement of activities, are utilized to provide information on a government-wide basis. The statement of net position presents financial information on all of the City’s assets, liabilities, and deferred inflows/outflows of resources, with the difference reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating. The statement of activities presents information showing how the City’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus revenues and expenses are reported for some items that will result in cash flows in future periods. -- 23 of 220 -- 24 ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 City of Tallahassee FInAnCIAL SECTIOn The government-wide financial statements of the City are divided into three categories: Governmental activities - These include the basic services provided by the City including police, parks and recreation, public works, and general administration. Property, sales, and other taxes finance the majority of these activities. Business-type activities - These include services for which the City charges specific fees which are meant to cover the cost of providing the services. These services include electric, gas, airport, fire protection, solid waste collection, water, sewer, stormwater management, transit services, and the Hilaman Golf Course. Component units - These are legally separate organizations for which the City Commission appoints the governing board and the City has financial reporting responsibilities. The City has one discretely presented component unit, the Downtown Improvement Authority, which is an agency created by the Florida Legislature to regulate downtown growth. The City also has a blended component unit, the Community Redevelopment Agency, which is blended as a nonmajor special revenue fund into the primary government (see Note I-A for more details). A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The focus is on major funds, which provides detailed information about the most significant funds. The City, like other governmental entities, uses funds to ensure and demonstrate compliance with financial requirements imposed by law, bond covenants, and local administrative and legislative actions. All of the City’s funds can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds. Governmental Funds - Governmental funds are used to account for essentially the same functions as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as balances of spendable resources available at the end of the fiscal year. Because the focus of governmental funds is narrower than that of government-wide financial statements, it is useful to compare information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the City’s near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The City maintains thirteen (13) individual governmental funds. Information is presented separately in the governmental funds balance sheet and in the governmental funds statement of revenues, expenditures, and changes in fund balances for the General Fund. The data for the other twelve funds are combined into a single, aggregate presentation. Proprietary Funds - The City maintains two different types of proprietary funds, enterprise and internal service. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The City maintains ten (10) individual enterprise funds. Information is presented separately in the proprietary funds statement of net position and in the proprietary funds statement of revenues, expenses, and changes in net position for the Electric, Gas, Sewer, Water, Airport, and Stormwater Management Funds, all of which are considered major funds. Data from the other four nonmajor funds are combined into a single, aggregate presentation. Internal Service Funds are used to account for activities that provide goods and services to the City’s other programs and activities. The City maintains fifteen (15) individual internal service funds. These internal service funds are allocated between governmental activities and business-type activities in the government-wide financial statements based upon the activity that receives the predominant benefit. Internal service funds are combined into a single, aggregate presentation in the proprietary fund financial statements. Fiduciary Funds - Fiduciary funds are used to account for resources held for the benefit of parties outside the City. Fiduciary funds are not reflected in the government-wide financial statements because the resources of those funds are not available to support the City’s programs and activities. The City reports four fiduciary funds, three of which are combined into a single, aggregate presentation in the fiduciary fund statements. -- 24 of 220 -- ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 25 City of Tallahassee FInAnCIAL SECTIOn notes to the Financial Statements The notes to the financial statements provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. other Information This report additionally includes required supplementary information (RSI) including a budget comparison schedule, with related notes, for the General Fund and information concerning the City’s progress in funding its obligation to provide pension and other post employment benefits to its employees. The combining statements in connection with nonmajor governmental funds, nonmajor enterprise funds, internal service funds, and pension and other employee benefit fiduciary funds are presented in the combining statements section of the report. Information regarding the City’s debt service requirements, statistical information, and economic data is also presented to give report users a historical perspective of the City and to allow for broader understanding of the economic and social environment in which the City operates. Government-Wide Financial Analysis The following table is a summary of the fiscal year 2024 Statement of Net Position with comparative information for fiscal year 2023. Table 1 Statement of net Position As of September 30 (in millions) Governmental Activities Business-type Activities Total 2024 2023 2024 2023 2024 2023 Assets Current and Other Assets $ 244.2 $ 125.5 $ 655.1 $ 598.2 $ 899.3 $ 723.7 Capital Assets 736.8 788.5 1,770.6 1,726.4 2,507.4 2,514.9 Total Assets 981.0 914.0 2,425.7 2,324.6 3,406.7 3,238.6 Deferred outflow of Resources 103.7 84.5 53.0 38.5 156.7 123.0 Total Assets and Deferred Outflows 1,084.7 998.5 2,478.7 2,363.1 3,563.4 3,361.6 Liabilities Current and Other Liabilities 289.9 259.3 268.0 218.7 557.9 478.0 Long-term Debt Outstanding 150.4 69.7 805.9 785.7 956.3 855.4 Total Liabilities 440.3 329.0 1,073.9 1,004.4 1,514.2 1,333.4 Deferred Inflows of Resources 33.2 42.0 38.6 45.9 71.8 87.9 Total Liabilities and Deferred Inflows 473.5 371.0 1,112.5 1,050.3 1,586.0 1,421.3 net Position Net Investment in Capital Assets 560.8 696.0 927.9 884.4 1,488.7 1,580.4 Restricted 179.1 96.4 292.8 288.3 471.9 384.7 Unrestricted (128.7) (164.9) 145.5 140.1 16.8 (24.8) Total Net Position 611.2 627.5 1,366.2 1,312.8 1,977.4 1,940.3 Total Liabilities, Deferred Inflows and Net Position $ 1,084.7 $ 998.5 $ 2,478.7 $ 2,363.1 $ 3,563.4 $ 3,361.6 -- 25 of 220 -- 26 ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 City of Tallahassee FInAnCIAL SECTIOn Changes in net position over time can be one of the best and most useful indicators of financial position. Total net position of the City increased from $1,940.3 million in 2023 to $1,977.4 million in 2024, an increase of $37.1 million or 1.91%. The largest portion of the City’s net position, $1.49 billion or 75.3%, reflects its substantial investment in capital assets (e.g., land, buildings, equipment, etc.), less the related outstanding debt used to acquire or construct those assets. The City uses these capital assets to provide services to residents; consequently, these assets are not available for future spending. Although the City’s investment in capital assets is reported net of related debt, it should be noted that the resources used to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. In addition, a portion of the City’s net position, $471.8 million or 23.9%, represents resources that are subject to external restrictions or restrictions imposed by formal action of the City Commission on how they may be used. After accounting for net position related to Investments in Capital Assets and other restrictions and commitments on net position, the City has an unrestricted net position of $16.8 million. At the end of the fiscal year, the City is able to report positive balances in all reported categories of net position for the government as a whole with the exception of the unrestricted net position in governmental activities. This negative net position is primarily as a result of City’s net pension and OPEB liabilities and their related deferred inflows. The remaining net position categories for governmental activities and all of the net position for business-type activities have positive balances. -- 26 of 220 -- ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 27 City of Tallahassee FInAnCIAL SECTIOn The following table is a summary of the fiscal year 2024 Statement of Activities with comparative information for fiscal year 2023. Table 2 Statement of Activities For the Year ended September 30 (in millions) Governmental Activities Business-type Activities Total 2024 2023 2024 2023 2024 2023 Revenues Program revenues Charges for Services $ 19.4 $ 15.8 $ 621.0 $ 621.3 $ 640.4 $ 637.1 Operating Grants and Contributions 24.5 23.3 6.2 21.1 30.7 44.4 Capital Grants and Contributions 5.0 4.4 24.9 37.4 29.9 41.8 General revenues Property Taxes 67.2 57.9 - - 67.2 57.9 Public Service Taxes 28.0 25.7 - - 28.0 25.7 Grants and Contributions 41.8 41.0 4.4 2.1 46.2 43.1 Net Investment Revenues 7.2 3.1 51.7 15.1 58.9 18.2 Other Revenues 28.8 20.0 21.2 3.0 50.0 23.0 Total Revenues 221.9 191.2 729.4 700.0 951.3 891.2 expenses General Government 39.8 28.1 - - 39.8 28.1 Public Safety 99.5 75.1 - - 99.5 75.1 Transportation 31.4 24.7 - - 31.4 24.7 Cultural and Recreation 29.8 25.0 - - 29.8 25.0 Depreciation on Infrastructure 35.8 35.4 - - 35.8 35.4 Other Primary Government 49.2 41.2 - - 49.2 41.2 RTU Amortization Expense 0.3 0.3 - - 0.3 0.3 SBITA Amortization Expense 0.2 0.2 - - 0.2 0.2 Interest on Long-Term Debt 4.9 3.5 - - 4.9 3.5 Electric - - 290.8 283.3 290.8 283.3 Gas - - 23.7 23.6 23.7 23.6 Sewer - - 82.4 78.5 82.4 78.5 Water - - 44.9 42.1 44.9 42.1 Airport - - 24.5 22.2 24.5 22.2 StarMetro - - 34.4 35.1 34.4 35.1 Solid Waste - - 43.9 32.3 43.9 32.3 Golf - - 1.2 1.4 1.2 1.4 Stormwater Management - - 22.6 20.8 22.6 20.8 Fire Services - - 54.9 52.3 54.9 52.3 Total Expenses 290.9 233.5 623.3 591.6 914.2 825.1 Increase (Decrease) in net Position Before Transfers (69.0) (42.3) 106.1 108.4 37.1 66.1 Transfers 52.7 47.2 (52.7) (47.2) - - Increase (Decrease) in net Position From operations (16.3) 4.9 53.4 61.2 37.1 66.1 Net Position - October 1 627.5 622.6 1,312.8 1,251.6 1,940.3 1,874.2 Net Position - September 30 $ 611.2 $ 627.5 $ 1,366.2 $ 1,312.8 $ 1,977.4 $ 1,940.3 -- 27 of 220 -- 28 ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 City of Tallahassee FInAnCIAL SECTIOn Program Revenues and Expenditures (in millions) General Government Public Safety Transportation Human Services Economic Development Physical Environment Cultural and Recreation Infrastructure Depreciation RTU and SBITA Amortization Expense Interest on Long-term Debt Program Revenues Expenditures $0 $15 $30 $45 $60 $75 $90 $105 Governmental Activities During the fiscal year, net position for governmental activities decreased $16.3 million for current year operations resulting in an ending balance of $611.2 million. Increases in revenues were offset by larger increases in expenditures and transfers out. Key elements of the overall decrease are as follows: ● Revenue increases resulted from the following: increased internal service fund charges in the governmental internal service funds based on allocated costs, increased tax revenue from a higher millage rate coupled with increased property values, increased public service taxes directly proportional to increased utility sales, and better market conditions yielding higher returns on investments. ● Expenses increased mainly in public safety. Public safety expenditures increased due to a $9.5 million increase in the police budget as well as a $7.8 million increase in wrap-around public safety initiatives. Other expenditure increases were primarily due to increased salary and benefit costs and general inflationary pressures. The following chart compares expenditures and program revenues for governmental activities. -- 28 of 220 -- ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 29 City of Tallahassee FInAnCIAL SECTIOn Expenditures by Function General Government: 14.0% General Government: 14.0% Transportation: 11.0% Transportation: 11.0% Other Primary Government: 17.0% Other Primary Government: 17.0% Depreciation on Infrastructure: 12.0% Depreciation on Infrastructure: 12.0% Cultural and Recreation: 10.0% Cultural and Recreation: 10.0% Interest on Long-Term Debt: 2.0% Interest on Long-Term Debt: 2.0% Public Safety: 34.0% Public Safety: 34.0% Revenues by Source Property Taxes: 24.0% Property Taxes: 24.0% Grants and Contributions: 27.0% Grants and Contributions: 27.0% Charges for Services: 7.0% Charges for Services: 7.0% Transfers: 19.0% Transfers: 19.0% Other Revenues: 10.0% Other Revenues: 10.0% Net Investment Revenues: 3.0% Net Investment Revenues: 3.0% Public Service Taxes: 10.0% Public Service Taxes: 10.0% The following chart illustrates the City’s expenditures by function for the City’s governmental activities. The following chart illustrates the City’s revenues by source for the City’s governmental activities. -- 29 of 220 -- 30 ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 City of Tallahassee FInAnCIAL SECTIOn Program Revenue and Expenses (in million) Electric Gas Sewer Water Airport StarMetro Solid Waste Golf Stormwater Fire Program Revenues Expenses $0 $50 $100 $150 $200 $250 $300 $350 Business-Type Activities For the City’s Business-type activities, the results for the current fiscal year were positive resulting in an ending net position of $1.37 billion. The increase of $53.4 million is the result of current year operations. Key elements of the increase are as follows: ● Revenues substantially increased due to better market conditions yielding higher returns on investments and unrealized gains. ● Expenses also increased but at a slower rate than revenues. The increases in expenses were substantially related to the May 2024 tornadoes that hit Tallahassee causing a lot of extra expense for debris removal and mutual aid expenses. Additionally, transfers out increased $10 million primarily due to a $12 million transfer from Electric fund to the Utility Technology Project. -- 30 of 220 -- ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 31 City of Tallahassee FInAnCIAL SECTIOn Financial Analysis of the City’s Funds As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Governmental Funds The focus of the City’s governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City’s financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year. As of September 30, 2024, the City’s governmental funds reported combined ending fund balances of $180.7 million, an increase of $84.3 million in comparison with the prior year. This increase is primarily due to favorable current year operations resulting from the issuance of a capital bond for $65 million for various capital improvements and a public improvement revenue note for $25 million to build a new senior center. Of this amount $2.0 million is considered non-spendable; $60.6 million is restricted for purposes which are externally imposed by providers; $117.0 million is committed for specific purposes that are internally imposed by the City Commission; $2.8 million is assigned to projects under the control of the department budgeted to receive the funds. These restrictions, commitments and assignments result in a negative unassigned fund balance of $1.6 million. The following table summarizes the change in fund balance for the governmental funds: Table 3 Financial Analysis of the City’s Governmental Funds (in thousands) Fund Fund Balances 9/30/2023 Sources Uses Sources over (Under) Uses Fund Balances 9/30/2024 General Fund $ 30,152 $ 203,009 $ 199,994 $ 3,015 $ 33,167 Other Funds 66,211 175,342 94,010 81,332 147,543 Total City Funds $ 96,363 $ 378,351 $ 294,004 $ 84,347 $ 180,710 The General Fund is the chief operating fund of the City. At the end of the fiscal year, fund balance for the general fund was $33.2 million, or 16.6% of general fund expenditures and other financing uses. Of this amount, $2.0 million is nonspendable and $1.2 million is unassigned. The fund balance for the City’s General Fund increased $3.0 million during fiscal year 2024. This increase is primarily related to increased property tax revenues which grew as a result of a millage rate increase from 4.1 to 4.45 in the current year coupled with an average increase of taxable property values of approximately 7.76%, driven by increased local real estate market values. The fund balance in the City’s other nonmajor governmental funds increased $81.3 million from the prior year. This increase was primarily the result of the City issuing a $65 million bond for various capital improvements as well as a loan for $25 million for the construction of a new Senior Center. -- 31 of 220 -- 32 ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 City of Tallahassee FInAnCIAL SECTIOn Expenditures by Program-FYs 2024 and 2023 (in millions) General Government Public Safety Transportation Human Services Economic Environment Physical Environment Culture and Recreation Debt Service and Debt Issuance Costs 2023 2024 $0 $15 $30 $45 $60 $75 $90 $105 Revenues by Source-FYs 2024 and 2023 (in millions) Taxes Licenses and Permits Intergovernmental Revenues Charges for Services Fines and Forfeitures Net Investment Earnings Miscellaneous Revenues 2023 2024 $0 $15 $30 $45 $60 $75 $90 $105 The following chart compares expenditures by program for the governmental funds The following charts compares revenues by source for the governmental funds -- 32 of 220 -- ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 33 City of Tallahassee FInAnCIAL SECTIOn Proprietary Funds The City’s proprietary funds provide the same type of information found in the government-wide financial statements but in more detail. Factors addressing the finances of these funds have already been addressed in the discussion of the City’s business-type activities. General Fund Budgetary Highlights A schedule comparing the original to the final budget and the variance from the final budget to the actual results is included on page 114 of the financial statements. There was no overall change to the original budget but changes did occur across several categories for various adjustments throughout the fiscal year. The City’s general fund generated a positive variance of approximately $179,000 between the final amended budget and actual results of operation. Actual revenues for the year were $160,000 under budget overall. This was primarily the net effect of a positive variance in tax revenues, an increase in charges for services and a decrease in intergovernmental revenues. Taxes increased due to an ad valorem tax rate hike and property value increases. Charges for services increased mainly in the following areas: parking revenues, fees for police protection at local university games, animal services contract with Leon County, charges for maintenance of traffic signals on state roads, and charges to Leon County for shared costs of the Tallahassee Leon County planning department. This was offset with a negative variance in intergovernmental revenues due to American Rescue Plan Act (ARPA) revenues being budgeted in the general fund but recognized in a special revenue fund. Overall expenses were under budget by $339,000. This variance was mainly due to the net of a positive variance in public safety expenses relating to ARPA expenses budgeted in the general fund but expended in a special revenue fund. Offsetting this large positive variance were large negative variances related to transportation costs and transfers out. Transportation costs went down because the public infrastructure personnel charged less time to capital projects this year resulting in more charges to the general fund operating budget. Transfers out were over budget due to a larger than expected transfer to the Starmetro fund for operational support. Capital Assets The City’s capital assets for its governmental and business-type activities, net of depreciation, as of September 30, 2024, were approximately $2.5 billion. This represents a net decrease of approximately $7.5 million, or 0.3%, under last year. See Note IV.D. for more information about the City’s capital assets. Table 4 Capital Assets, net of accumulated depreciation (in thousands) Governmental Activities Business-Type Activities Total 2024 2023 2024 2023 2024 2023 Land $ 371,266 $ 371,259 $ 157,002 $ 156,138 $ 528,268 $ 527,397 Buildings 41,306 43,584 119,388 125,193 160,694 168,777 Equipment 17,437 59,834 331,651 316,828 349,088 376,662 Improvements (Other than Buildings) 5,185 5,486 17,247 18,948 22,432 24,434 Infrastructure 237,412 265,620 872,415 824,957 1,109,827 1,090,577 Intangibles 1,539 1,718 143,215 154,990 144,754 156,708 Right to Use Property 1,169 1,118 - - 1,169 1,118 Right to Use Equipment and Fixtures 2,389 2,926 2,611 2,919 5,000 5,845 Subscription Based Arrangements Assets 3,854 5,509 1,519 493 5,373 6,002 Construction in Progress 55,244 31,412 125,531 125,979 180,775 157,391 Total $ 736,801 $ 788,466 $ 1,770,579 $ 1,726,445 $ 2,507,380 $ 2,514,911 -- 33 of 220 -- 34 ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 City of Tallahassee FInAnCIAL SECTIOn Major capital acquisitions and improvements during the year included the following: ● Aviation infrastructure - $28.1 million ● Electric generation, transmission and distribution infrastructure - $20.2 million ● Gas transmission and distribution infrastructure - $4.7 million ● Sewer collection, treatment, and disposal infrastructure - $29.4 million ● StarMetro acquisition of buses and system improvements - $4.1 million ● Stormwater infrastructure - $3.0 million ● Street construction, widening and expansion projects improvements, park improvements, and vehicles and equipment for public safety purposes, - $24.5 million ● Water transmission and distribution infrastructure - $12.2 million ● Technology and Innovation - $8.5 million Long-Term Debt As shown in the following table, as of September 30, 2024, the City had $904.7 million in total debt outstanding. This amount represents bonds and loans secured by specified revenue sources and excludes issuance premium and discounts. Table 5 outstanding Debt at September 30 (in thousands) Governmental Activities Business-type Activities Total 2024 2023 2024 2023 2024 2023 General Revenue Bonds $ 122,070 $ 65,990 $ - $ - $ 122,070 $ 65,990 Proprietary Revenue Bonds - - 748,024 752,266 748,024 752,266 Other Loans/Notes 34,610 10,170 - 3,233 34,610 13,403 Total $ 156,680 $ 76,160 $ 748,024 $ 755,499 $ 904,704 $ 831,659 The City’s total debt increased by $73.0 million, or 8.78%, during the current fiscal year. This is primarily due to the net effect of principal paydowns of approximately $471.7 million netted with the execution of a new general obligation bond of $65 million for capital improvements, a new general obligation note for $25 million for the construction of a new senior center, a $27 million note for a new fire station and $424.8 in Energy and Consolidated Utility Systems bonds for system improvements. Bond ratings have a significant influence in establishing the rate of interest expense the City must pay when the bonds are sold. Ratings for the City’s debt have been consistently judged to be of good investment quality as indicated in the following table: Table 6 Bond Ratings Moody’s Investors Service, Inc Standard & Poor’s Rating Services Fitch Ratings, Inc Capital Bonds Aa2 NA AA+ Consolidated Utility Systems Bonds NA AA AA+ Energy System Bonds Aa3 AA AA Additional information about the City’s long-term liabilities is included in Note IV-H to the financial statements. -- 34 of 220 -- ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 35 City of Tallahassee FInAnCIAL SECTIOn economic Factors and next Year’s Budget and Rates Significant Revenue Factors Funding for the City’s governmental activities comes from property taxes and a limited number of other taxes as authorized by the State Legislature (sales, gasoline, utility services, and telecommunications), and other fees to recover the costs of services provided. Revenue is also received from state-shared revenues and grants from state and federal governments. Revenues for the business-type activities and certain governmental activities (permitting, recreational programs, etc.) come from user fees or service charges. The consumption of the City’s utilities is impacted by local weather patterns and the growth of new homes and businesses in the market. In recent years, there has been a decreasing consumption trend per capita in all the utilities due mainly to the City’s demand side management programs. The resulting slower growth in demand has allowed the City to defer adding generating capacity for its electric utility. The cost of fuel is recovered from customers through cost recovery adjustments that are not part of base rates to customers. The Electric Fund maintains a reserve account that has been used in the past to reduce the impact to electric customers of steep increases in the market price of fuel. The balance in this fund as of September 30, 2023, was approximately $95 million. economic and other Factors that may Impact the City’s Financial Position The presence of two state universities, a community college and the state government provide a stabilizing influence on the City of Tallahassee’s financial position. Leon County’s unemployment has consistently been lower than the national level, which was the case in 2024. As with any capital city, the health of the state government will continue to have a substantial impact on the economic and financial health of the City of Tallahassee. State government sales tax revenues have continued to increase in recent years, nearing historic high levels, a strong indicator for one of the largest industries in the City. The City continues to monitor other state and local revenue streams, such as the Communication Services Tax, and contracts lobbying services to advocate for its financial interest at both the state and federal levels. Additionally, the City is deliberate in seeking out state and federal grant opportunities to support the services it provides to its citizens. Alongside the state workforce, Tallahassee’s institutions of higher learning continue to be major economic drivers in the community. Ongoing partnerships with these institutions represent significant economic and development opportunities for the City. Most recently, increased partnerships between the universities and the City have helped attract companies to relocate to Tallahassee, especially those interested in the research being performed by Florida State University’s National High Magnetic Field Laboratory. Furthermore, while college education costs have come under increased scrutiny in the past couple of years, state university tuition remains affordable compared to public universities in other states. The City is actively involved in recruiting new businesses and employers to the area by providing a variety of incentives and funding for eligible businesses as well as planning tools designed to promote economic development. This strategy has been successful in attracting new businesses and supporting existing businesses. In 2024, Danfoss Turbocor completed a 145,000-square-foot production facility in Innovation Park, doubling its manufacturing capacity. The expansion will nearly double its current workforce of 260 employees. In 2023, Amazon opened a 635,000-square-foot robotics fulfillment center that supports 1,300 full-time jobs. Additionally, with the anticipated 2025 opening of the International Processing Facility at the Tallahassee International Airport (TLH), the establishment of a Foreign Trade Zone is well underway and is anticipated to create more than 1,600 jobs and generate more than $300 million annually in economic impact. This is expected to further drive the economic impact of TLH, which increased by 43% between 2019 and 2024. Another sign of economic activity is the number of new developments completed or under construction throughout the City. In FY 2024, the City permitted 783,000 square feet of new commercial space. A nearly complete downtown development project, Industry Apartments, is beginning to lease its first tenants. Once fully leased, the development will feature 231 apartments, 17 townhouses, and 15,000 square feet of retail space. The Canopy Project, a mixed-use development of 505 acres, continues to build out apartments and hundreds of new single-family homes. South of downtown, SoMo Walls is a new 33,000 square foot multi-purpose venue bringing unique dining, retail, service, and office space to the community and supporting an estimated 130 new jobs. New subdivisions continue their construction of single-family homes in various sectors of the City while a number of apartment complexes and condominium units are planned or -- 35 of 220 -- 36 ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 City of Tallahassee FInAnCIAL SECTIOn underway across the community. In addition to private investment, the City has a five-year Capital Improvement Plan of $1.2 billion, encompassing 197 projects aimed at improving roads, sidewalks, and utilities to enhance the overall appeal of Tallahassee for both businesses and residents. The Blueprint Intergovernmental Agency is contributing more than $500 million through its five-year capital plan, further bolstering public investment in the region through additional roadway improvements, bike and pedestrian facilities, developed public space, and new public parks. Founded in 1948, Tallahassee Memorial Hospital (TMH) is a private, not-for-profit community healthcare system committed to transforming care, advancing health, and improving lives with an ultimate vision to elevate the standards of healthcare practice, quality and innovation in the Big Bend region of Florida. Serving a 21-county area in North Florida, South Georgia and South Alabama, TMH is comprised of a 772-bed acute care hospital, a surgery and adult ICU center, a psychiatric hospital, multiple specialty care centers, three residency programs, 38 affiliated physician practices and partnerships with Alliant Management Services, Apalachee Center, Calhoun Liberty Hospital, Capital Health Plan, Doctors’ Memorial Hospital, Florida State University College of Medicine, Radiology Associates, University of Florida Health, Weems Memorial Hospital and Wolfson Children’s Hospital. TMH will expand its service footprint with a health care campus in Panama City Beach in Bay County, highlighting both TMH’s vitality and the healthcare industry connection between our two communities. TMH is partnering with Florida State University and the St. Joe Company on this project, which will include an 80,000-square-foot medical office building which opened in 2024, and a 100-bed hospital slated to be completed in 2027. FSU and TMH are also partnering to build an academic health center of the future in Tallahassee. The State of Florida awarded Florida State University $125 million for this project in 2022. The new academic health center will be located on TMH’s main campus. The facility, scheduled to be completed in 2026, will provide about 140,000 square feet of medical and research-related space. It will accommodate an estimated 30 principal investigators, sustain over 350 high-paying permanent jobs, and is expected to produce an estimated $40 million of additional annual grant funding. These indicators, as well as others, were taken into account when adopting the City’s budget for fiscal year 2025. The total fiscal year 2025 City-wide operating budget totals $868.4 million, an increase of $41.7 million from fiscal year 2024. Personnel expenditures account for approximately 31% of the City’s operating budget. The City’s fiscal year 2025 operating budget has a net increase of 26.25 positions bringing total positions to 2,980.75. The capital budget for fiscal year 2025 totals $253 million, an increase of $48 million from fiscal year 2024. The City’s utilities account for $146 million or 58% of the capital budget; other major uses include transportation, general government, public safety, technology, and culture and recreation. Bond proceeds (new and existing) will fund approximately 27% of these capital projects with the balance of funding coming primarily from capital improvement funds reserved for projects, federal funds, state funds, and general government resources. The City has a five year plan for capital improvements for all projects planned through fiscal year 2029 which totals $1.1 billion with appropriations of funding made on an annual basis. Financial Contact This financial report is designed to provide residents, taxpayers, customers, and creditors with a general overview of the City of Tallahassee’s finances and to demonstrate the City’s accountability for the money it receives. If you have questions about the report or need additional financial information, contact the Financial Reporting Manager at 300 South Adams Street, Mailbox A-29, Tallahassee, Florida 32301-1731 or via email at Rita.Stevens@talgov.com. -- 36 of 220 -- ANNUAL FINANCIAL REPORT CITY OF ATLANTIS ANNUAL FINANCIAL REPORT RADFORD UNIVERSITY Annual Comprehensive Financial Report CITY OF TALLAHASSEE, FLORIDA Basic Financial Statements These basic financial statements provide a summary overview of the financial position as well as the operating results of the City of Tallahassee. They also serve as an introduction to the more detailed statements and schedules that follow in subsequent sections: ● Government-wide Financial Statements ● Governmental Funds Financial Statements ● Proprietary Funds Financial Statements ● Fiduciary Funds Financial Statements ● Notes to Financial Statements -- 37 of 220 -- 38 ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 City of Tallahassee BASIC FInAnCIAL STATEmEnTS The notes to the financial statements are an integral part of these financial statements. City of Tallahassee, Florida Statement of net Position September 30, 2024 (in thousands) Primary Government Component Unit Governmental Activities Business-Type Activities Total Downtown Improvement Authority Assets and Deferred Outflows of Resources Current Assets Cash and Cash Equivalents $ 66,895 $ 204,064 $ 270,959 $ 319 Securities Lending Collateral 1,248 2,641 3,889 4 Receivables: Accrued Interest 328 1,078 1,406 2 Customers and Other 679 108,362 109,041 1 Notes 906 4,978 5,884 - Leases - 314 314 - Special Assessments 42 - 42 - Less: Allowance for Doubtful Accounts (29) (21,577) (21,606) - Due From Other Governments 19,331 15,180 34,511 - Prepaid Expenses - 3,919 3,919 - Inventory 925 59,517 60,442 - Cash and Cash Equivalents - Restricted 109,877 298,907 408,784 - Securities Lending Collateral - Restricted 1,305 3,558 4,863 - Receivables - Restricted: Accrued Interest 571 1,560 2,131 - Other 12 - 12 - Notes 343 - 343 - Leases 2,256 557 2,813 - Due From Other Governments 1,824 3,887 5,711 - Total Current Assets 206,513 686,945 893,458 326 Noncurrent Assets Internal Balances 37,717 (37,717) - - Deposits - 5,904 5,904 - Capital Assets Land and Construction in Progress 426,510 282,533 709,043 - Other, Net of Accumulated Depreciation 310,291 1,488,046 1,798,337 - Total Noncurrent Assets 774,518 1,738,766 2,513,284 - Total Assets 981,031 2,425,711 3,406,742 326 Deferred Outflows of Resources Pension related deferred outflows 94,234 36,210 130,444 74 OPEB related deferred outflows 9,457 7,657 17,114 19 Fuel Hedging deferred outflows - 9,142 9,142 - Total Deferred Outflows of Resources 103,691 53,009 156,700 93 Total Assets and Deferred Outflows of Resources $ 1,084,722 $ 2,478,720 $ 3,563,442 $ 419 -- 38 of 220 -- ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 39 City of Tallahassee BASIC FInAnCIAL STATEmEnTS The notes to the financial statements are an integral part of these financial statements. City of Tallahassee, Florida Statement of net Position September 30, 2024 (in thousands) Primary Government Component Unit Governmental Activities Business-Type Activities Total Downtown Improvement Authority Liabilities, Deferred Inflows of Resources and Net Postion Current Liabilities Obligations Under Securities Lending $ 1,248 $ 2,641 $ 3,889 $ 4 Accounts Payable 9,384 74,671 84,055 26 Deposits Payable - 30,015 30,015 - Unearned Revenue 6,002 138 6,140 - Due to Other Governments 2,487 - 2,487 1 Lease Payable 1,298 438 1,736 - Subscription Liability 1,257 525 1,782 - Compensated Absences 7,813 10,831 18,644 8 Accounts Payable - Restricted 7,527 6,948 14,475 - Obligations Under Securities Lending - Restricted 1,305 3,558 4,863 - Unearned Revenue - Restricted 477 - 477 - Bonds and Loans Payable 14,235 36,657 50,892 - Total Current Liabilities 53,033 166,422 219,455 39 Noncurrent Liabilities Compensated Absences 4,157 5,786 9,943 - Customer Contracts Payable - 2,175 2,175 - Claims Payable - 15,690 15,690 - Lease Payable 2,665 2,230 4,895 - Subscription Liability 1,698 1,019 2,717 - Net OPEB Liability 37,202 25,370 62,572 104 Net Pension Liability 191,158 40,227 231,385 72 Bonds and Loans Payable 150,396 805,855 956,251 - Derivative Instruments - 9,142 9,142 - Total Noncurrent Liabilities 387,276 907,494 1,294,770 176 Total Liabilities 440,309 1,073,916 1,514,225 215 Deferred Inflows of Resources Deferred Inflows on Bond Refundings 3,377 24,590 27,967 - Pension Related Deferred Inflows 13,775 1,523 15,298 5 OPEB Related Deferred Inflows 13,831 11,661 25,492 21 Lease Related Deferred Inflows 2,188 836 3,024 - Total Deferred Inflows of Resources 33,171 38,610 71,781 26 Total Liabilities and Deferred Inflows of Resources 473,480 1,112,526 1,586,006 241 Net Position Net Investment in Capital Assets 560,847 927,864 1,488,711 - Restricted for: Capital Projects 50,258 292,839 343,097 - Debt Service 10,355 8 10,363 - Cemetery Grounds Maintenance 2,129 - 2,129 - Emergency Management 27,086 - 27,086 - General Government 5,969 - 5,969 - Technology Upgrades and Equipment 4,611 - 4,611 - Housing and Community Development 5,818 - 5,818 - Public Infrastructure and Park Enhancements 45,448 - 45,448 - Public Safety Campus 24,083 - 24,083 - Other Purposes 3,316 - 3,316 - Unrestricted (128,678) 145,483 16,805 178 Total Net Position 611,242 1,366,194 1,977,436 178 Total Liabilities, Deferred Inflows of Resources and Net Position $ 1,084,722 $ 2,478,720 $ 3,563,442 $ 419 -- 39 of 220 -- 40 ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 City of Tallahassee BASIC FInAnCIAL STAT eMen TS City of Tallahassee BASIC FInAnCIAL STATE mEnTS The notes to the financial statements are an integral part of these financial statements. Statement of Activities For the Fiscal Year ended September 30, 2024 (in thousands) Net (Expense) Revenue and Changes in Net Position Program Revenue Primary Government Component Unit Expenses Charges for Services Operating Grants and Contributions Capital Grants and Contributions Governmental Activities Business-type Activities Total Function/Program Primary Government: Governmental Activities: General Government $ 39,794 $ 3,302 $ 13,589 $ - $ (22,903) $ - $ (22,903) $ - Public Safety 99,454 1,631 6,644 - (91,179) - (91,179) - Transportation 31,420 5,130 2,364 2,863 (21,063) - (21,063) - Human Services 17,782 1,509 271 - (16,002) - (16,002) - Economic Development 11,229 342 - - (10,887) - (10,887) - Physical Environment 20,153 2,843 1,136 2,125 (14,049) - (14,049) - Culture and Recreation 29,839 4,595 530 - (24,714) - (24,714) - Unallocated Depreciation on Infrastructure 35,835 - - - (35,835) - (35,835) - RTU Amortization Expense 282 - - - (282) - (282) - SBITA Amortization Expense 214 - - - (214) - (214) - Interest on Long-Term Debt 4,935 - - - (4,935) - (4,935) - Total governmental activities 290,937 19,352 24,534 4,988 (242,063) - (242,063) - Business-type Activities: Electric 290,774 316,297 965 - - 26,488 26,488 - Gas 23,706 31,225 2 - - 7,521 7,521 - Sewer 82,440 82,265 7 - - (168) (168) - Water 44,881 47,211 14 - - 2,344 2,344 - Airport 24,457 17,613 1,892 20,466 - 15,514 15,514 - StarMetro 34,438 6,904 2,474 4,436 - (20,624) (20,624) - Solid Waste 43,864 38,233 812 - - (4,819) (4,819) - Golf 1,234 1,387 - - - 153 153 - Stormwater Management 22,571 24,136 - - - 1,565 1,565 - Fire Services 54,880 55,724 - - - 844 844 - Total business-type activities 623,245 620,995 6,166 24,902 - 28,818 28,818 - Total primary government $ 914,182 $ 640,347 $ 30,700 $ 29,890 (242,063) 28,818 (213,245) - Component Unit: Downtown Improvement Authority $ 485 $ - $ - $ - 0.0 0.0 0.0 (485) General Revenues and Net Transfers Taxes: Property Taxes, levied for general purposes 67,247 - 67,247 316 Public Service Taxes 28,005 - 28,005 - Permits and Fees 6,641 - 6,641 - Grants and Contributions, not restricted to specific programs 41,770 4,445 46,215 58 Net Unrestricted Investment Earnings 4,848 18,492 23,340 11 Net Securities Lending Income 13 108 121 - Change in Fair Value of Investments 2,340 33,059 35,399 27 Miscellaneous 22,214 21,203 43,417 211 Net Transfers 52,742 (52,742) - - Total General Revenues and Transfers 225,820 24,565 250,385 623 Change in Net Position (16,243) 53,383 37,140 138 Net Position - October 1 627,485 1,312,811 1,940,296 40 Net Position - September 30 $ 611,242 $ 1,366,194 $ 1,977,436 $ 178 -- 40 of 220 -- ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 41 City of Tallahassee BASIC FInAnCIAL STATEmEnTS Governmental Funds General Accounts for all financial resources except those required to be accounted for in another fund. The functions paid for by the general fund include police, protective inspection, code enforcement, culture and recreation, general government, transportation, human services, economic development, and physical environment. other Governmental Funds Detailed descriptions of these funds are provided on page 129. Proprietary Funds electric Accounts for the assets, operation and maintenance of the City-owned electric generation, transmission, and distribution system Gas Accounts for the assets, operation and maintenance of the City-owned gas system. Sewer Accounts for the assets, operation and maintenance of the City’s wastewater collection and treatment system. Water Accounts for the assets, operation and maintenance of the City’s water production and distribution system. Airport Accounts for the assets, operation and maintenance of the City-owned international airport. Stormwater Management Accounts for the operation, maintenance, and expansion of the City-owned stormwater utility system. other enterprise Funds Detailed descriptions of these funds are provided on page 136. Internal Service Funds Detailed description of these funds are provided on page 141. Fiduciary Funds Pension and oPeB Trust Funds Detailed descriptions of these funds are provided on page 149. Custodial Fund Reports Fiduciary activities that are not required to be reported in pension (and other employee benefit) trust funds, investment trust funds, or private-purpose trust funds. -- 41 of 220 -- 42 ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 City of Tallahassee BASIC FInAnCIAL STATEmEnTS The notes to the financial statements are an integral part of these financial statements. Balance Sheet Governmental Funds September 30, 2024 (in thousands) General Other Governmental Funds Total Governmental Funds ASSETS Assets Unrestricted Cash and Cash Equivalents $ 25,892 $ 37,649 $ 63,541 Securities Lending Collateral 308 901 1,209 Receivables: Accrued Interest 141 167 308 Customers and Others 669 - 669 Leases 1,965 291 2,256 Notes - 906 906 Special Assessments - 42 42 Less: Allowance for Doubtful Accounts (29) - (29) Due From Other Funds - 3,005 3,005 Due From Other Governments 13,837 5,041 18,878 Advances To Other Funds - 9,995 9,995 Inventory 925 - 925 Assets Restricted Cash and Cash Equivalents 1,037 108,919 109,956 Securities Lending Collateral 12 1,293 1,305 Receivables: Accrued Interest - 571 571 Customers and Others - 12 12 Notes - 343 343 Due From Other Governments - 1,824 1,824 Total Assets $ 44,757 $ 170,959 $ 215,716 LIABILITIES Liabilities Unrestricted Obligations Under Securities Lending $ 308 $ 901 $ 1,209 Accounts and Retainage Payable 4,728 1,987 6,715 Due To Other Funds 53 3,005 3,058 Due To Other Governments 2,487 - 2,487 Advances from Other Funds 1,032 3,006 4,038 Unearned Revenue - 6,002 6,002 Liabilities Restricted Obligations Under Securities Lending 12 1,293 1,305 Accounts and Retainage Payable 1,037 6,490 7,527 Unearned Revenue - 477 477 Total Liabilities 9,657 23,161 32,818 DEFERRED INFLOWS OF RESOURCES Lease Related Deferred Inflows 1,933 255 2,188 Total Deferred Inflows of Resources 1,933 255 2,188 Total Liabilities and Deferred Inflows of Resources 11,590 23,416 35,006 FUND BALANCES Nonspendable 1,962 - 1,962 Spendable: Restricted - 60,613 60,613 Committed 27,243 89,775 117,018 Assigned 2,755 - 2,755 Unassigned 1,207 (2,845) (1,638) Total Fund Balances 33,167 147,543 180,710 Total Liabilities and Fund Balances $ 44,757 $ 170,959 $ 215,716 -- 42 of 220 -- ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 43 City of Tallahassee BASIC FInAnCIAL STATEmEnTS The notes to the financial statements are an integral part of these financial statements. Reconciliation of the Governmental Funds Balance Sheet to the Statement of net Position September 30, 2024 (in thousands) Total Fund Balances - Governmental Funds $ 180,710 Amounts reported for governmental activities in the Statement of Net Position are different because: Capital and right to use assets used in governmental activities are not financial resources and therefore are not reported in the funds. 736,801 Long-term receivables will not be collected in the current period and, therefore, are not reported in the funds. 33,738 Internal service funds are used by management to charge the costs of certain activities to individual funds. The assets and liabilities of the governmental-type internal service funds are included in the Statement of Net Position. (756) Certain amounts related to the Net Pension Liability and Net OPEB liability are deferred and amortized over time and are not reported in the funds. 40,523 Deferred results and contributions to pension plans made after the measurement date are recorded as expenditures in the fund statements but must be deferred in the Statement of Net Position. 35,562 Long-term liabilities, including bonds payable, compensated absences, deferred outflows of resources, net pension liability, and net OPEB liability are not due and payable in the current period and therefore are not reported in the funds. (415,336) Net Position - Governmental Activities $ 611,242 -- 43 of 220 -- 44 ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 City of Tallahassee BASIC FInAnCIAL STATEmEnTS The notes to the financial statements are an integral part of these financial statements. Statement of Revenues, expenditures and Changes in Fund Balance Governmental Funds For the Fiscal Year ended September 30, 2024 (in thousands) General other Governmental Funds Total Governmental Funds ReVenUeS Taxes $ 90,360 $ 4,892 $ 95,252 Licenses and Permits 2,861 6,641 9,502 Intergovernmental Revenues 26,144 44,013 70,157 Charges for Services 14,408 1,759 16,167 Fines and Forfeitures 624 442 1,066 Net Investment Earnings 451 4,230 4,681 Securities Lending Income 9 92 101 Change in Fair Value of Investments - 2,221 2,221 Miscellaneous Revenues 11,560 2,236 13,796 Total Revenues 146,417 66,526 212,943 eXPenDITUReS Current General Government 29,544 4,409 33,953 Public Safety 76,936 16,555 93,491 Transportation 22,788 16,086 38,874 Human Services 12,743 4,651 17,394 Economic Environment 115 10,927 11,042 Physical Environment 5,293 21,123 26,416 Culture and Recreation 27,387 2,395 29,782 Securities Lending Expense Interest 8 80 88 Debt Service Principal Retired - 8,715 8,715 Interest and Fiscal Charges 94 4,117 4,211 Total Expenditures 174,908 89,058 263,966 Excess of Revenues Over (Under) Expenses (28,491) (22,532) (51,023) oTHeR FInAnCInG SoURCeS (USeS) Transfers In 55,730 13,736 69,466 Transfers Out (25,086) (4,952) (30,038) Proceeds from Sale of Capital Assets 862 - 862 Proceeds from Sale of Bonds and Loans - 90,110 90,110 Premium from Bond Issuance - 4,970 4,970 Total Other Financing Sources (Uses) 31,506 103,864 135,370 Net Change in Fund Balances 3,015 81,332 84,347 Fund Balances - October 1 30,152 66,211 96,363 Fund Balances - September 30 $ 33,167 $ 147,543 $ 180,710 -- 44 of 220 -- ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 45 City of Tallahassee BASIC FInAnCIAL STATEmEnTS The notes to the financial statements are an integral part of these financial statements. Reconciliation of Revenues, expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities For the Fiscal Year ended September 30, 2024 (in thousands) Net Change in Fund Balances - Total Governmental Funds $ 84,347 Amounts reported for governmental activities in the Statement of Activities are different because: Capital outlays are reported as expenditures in governmental funds. However, in the Statement of Activities, the cost of capital assets is allocated over their estimated useful lives as depreciation expense. This is the amount by which capital outlays exceeded depreciation and amortization in the current period. (17,766) Internal Service funds are used by management to charge the costs of certain activities to individual funds. The net revenue of certain internal service funds is reported with governmental activities. 12,434 The issuance of long-term debt provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net position. Also, governmental funds report the effect of premiums, discounts, and similar items when debt is issued, whereas these amounts are deferred and amortized in the Statement of Activities. This amount is the net effect of these differences in the treatment of long-term debt and related items. (85,513) The net change in compensated absences which is reported in the Statement of Activities does not require the use of current financial resources and therefore is not reported as an expenditure in governmental funds. (252) Pension and OPEB related items reported in the Statement of Activities do not require the use of current financial resources and therefore are not reported as an expenditure in governmental funds. (9,493) Change in Net Position of Governmental Activities $ (16,243) -- 45 of 220 -- 46 ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 City of Tallahassee BASIC FInAnCIAL STAT eMen TS City of Tallahassee BASIC FInAnCIAL STATE mEnTS The notes to the financial statements are an integral part of these financial statements. Statement of net Position Proprietary Funds September 30, 2024 (in thousands) Enterprise Funds Electric Gas Sewer Water Airport Stormwater Management Other Enterprise Funds Total Enterprise Funds Internal Service Funds ASSETS Current Assets Unrestricted Cash and Cash Equivalents $ 97,279 $ 5,266 $ - $ 1,178 $ 2,670 $ 36,459 $ 3,548 $ 146,400 $ 61,018 Securities Lending Collateral 1,158 63 - 14 32 434 42 1,743 937 Receivables: Accrued Interest 511 28 6 4 15 192 19 775 322 Customers and Others 62,097 4,290 13,440 7,957 1,327 3,926 14,934 107,971 402 Notes 4,377 - 601 - - - - 4,978 - Leases - - - 175 83 - 56 314 - Due From Other Governments 4,139 2 800 152 - 22 9,974 15,089 544 Less: Allowance for Doubtful Accounts (12,340) (495) (2,332) (1,712) (351) (819) (3,528) (21,577) - Prepaid Expenses - - - - - - - - 3,919 Due From Other Funds 30,000 - - - - 140 - 30,140 23,413 Inventory 54,810 82 987 73 223 - 1,012 57,187 2,330 Restricted Cash and Cash Equivalents 159,454 14,489 56,862 14,028 27,756 - 26,318 298,907 - Securities Lending Collateral 1,898 173 677 167 330 - 313 3,558 - Accrued Interest 837 76 292 72 145 - 138 1,560 - Due From Other Governments - - 36 47 2,501 - 1,303 3,887 - Total Current Assets 404,220 23,974 71,369 22,155 34,731 40,354 54,129 650,932 92,885 Noncurrent Assets Leases - - - 291 93 - 173 557 - Advances To Other Funds 3,000 - 9,504 - - - - 12,504 1,599 Deposits - - - - - - - - 5,904 Capital Assets Land and Construction in Progress 62,264 347 43,052 11,119 43,942 116,239 5,526 282,489 9,471 Other, Net of Accumulated Depreciation 551,053 63,155 407,581 170,201 102,274 91,880 44,114 1,430,258 76,632 Total Noncurrent Assets 616,317 63,502 460,137 181,611 146,309 208,119 49,813 1,725,808 93,606 Total Assets 1,020,537 87,476 531,506 203,766 181,040 248,473 103,942 2,376,740 186,491 DEFERRED OUTFLOWS OF RESOURCES Pension Related Deferred Outflows 13,662 1,129 6,571 3,255 2,714 2,865 6,014 36,210 - OPEB Related Deferred Outflows 2,222 209 1,103 546 361 366 2,850 7,657 - Deferred Outflows on Fuel Hedging - - - - - - 153 153 8,989 Total Deferred Outflows of Resources 15,884 1,338 7,674 3,801 3,075 3,231 9,017 44,020 8,989 Total Assets and Deferred Outflows of Resources $ 1,036,421 $ 88,814 $ 539,180 $ 207,567 $ 184,115 $ 251,704 $ 112,959 $ 2,420,760 $ 195,480 -- 46 of 220 -- ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 47 City of Tallahassee BASIC FInAnCIAL STAT eMen TS City of Tallahassee BASIC FInAnCIAL STATE mEnTS The notes to the financial statements are an integral part of these financial statements. Statement of net Position Proprietary Funds (Continued) September 30, 2024 (in thousands) Enterprise Funds Electric Gas Sewer Water Airport Stormwater Management Other Enterprise Funds Total Enterprise Funds Internal Service Funds LIABILITIES Current Liabilities Unrestricted Accounts and Retainage Payable $ 45,465 $ 3,861 $ 5,517 $ 1,545 $ 3,498 $ 453 $ 3,314 $ 63,653 $ 13,688 Due To Other Funds - - 140 - 3 - 19,915 20,058 33,442 Compensated Absences 2,886 234 886 760 445 555 2,794 8,560 3,234 Lease Payable - - - - 5 - 377 382 1,354 SBITA Liability - - - - - - 64 64 1,718 Obligations Under Securities Lending 1,158 63 - 14 32 434 42 1,743 937 Unearned Revenue - - - - - - 138 138 - Deposits Payable 26,157 998 - 2,823 37 - - 30,015 - Loans Payable - - - - - - 185 185 - Bonds Payable 21,602 348 9,852 3,763 - - 907 36,472 885 Restricted Accounts and Retainage Payable 2,666 62 669 219 1,904 - 1,428 6,948 - Obligations Under Securities Lending 1,898 173 677 167 330 - 313 3,558 - Total Current Liabilities 101,832 5,739 17,741 9,291 6,254 1,442 29,477 171,776 55,258 Noncurrent Liabilities Claims Payable - - - - - - - - 15,690 Customer Contracts Payable - - 1,457 718 - - - 2,175 - Advances from Other Funds 3,978 - - - 100 4,074 11,746 19,898 162 Compensated Absences 1,426 152 685 - 355 164 1,900 4,682 1,414 Lease Payable - - - - 3 - 2,132 2,135 1,352 SBITA Liability - - - - - - 69 69 2,285 Net OPEB Liability 5,566 647 4,239 1,776 922 191 12,029 25,370 - Loans Payable - - - - - - 26,815 26,815 - Bonds Payable 452,115 2,561 234,671 86,845 - - 2,848 779,040 2,730 Net Pension Liability 15,189 1,269 7,319 3,698 2,849 3,187 6,716 40,227 - Derivative Instruments - - - - - - 153 153 8,989 Total Noncurrent Liabilities 478,274 4,629 248,371 93,037 4,229 7,616 64,408 900,564 32,622 Total Liabilities 580,106 10,368 266,112 102,328 10,483 9,058 93,885 1,072,340 87,880 DEFERRED INFLOWS OF RESOURCES Deferred Inflows on Refunding of Bonds 8,057 309 12,388 3,836 - - - 24,590 - Pension Related Deferred Inflows 555 49 270 145 120 119 265 1,523 - OPEB Related Deferred Inflows 3,562 322 1,621 842 576 662 4,076 11,661 - Lease Related Deferred Inflows - - - 440 169 - 227 836 - Total Liabilities and Deferred Inflows of Resources 592,280 11,048 280,391 107,591 11,348 9,839 98,453 1,110,950 87,880 NET POSITION Net Investment in Capital Assets 131,543 60,284 196,203 86,933 146,039 208,119 42,473 871,594 75,779 Restricted for: Debt Service - - 8 - - - - 8 - Renewal, Replacement and Improvements 162,063 14,199 42,932 12,974 25,238 34,769 664 292,839 - Unrestricted 150,535 3,283 19,646 69 1,490 (1,023) (28,631) 145,369 31,821 Total Net Position 444,141 77,766 258,789 99,976 172,767 241,865 14,506 1,309,810 107,600 Total Liabilities, Deferred Inflows, and Net Position $ 1,036,421 $ 88,814 $ 539,180 $ 207,567 $ 184,115 $ 251,704 $ 112,959 2,420,760 $ 195,480 Adjustment to reflect the consolidation of internal service fund activities to enterprise funds 56,384 Net Position of Business-type Activities $ 1,366,194 -- 47 of 220 -- 48 ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 City of Tallahassee BASIC FInAnCIAL STAT eMen TS City of Tallahassee BASIC FInAnCIAL STATE mEnTS The notes to the financial statements are an integral part of these financial statements. Statement of Revenues, expenses and Changes in net Position Proprietary Funds For the Fiscal Year ended September 30, 2024 (in thousands) Enterprise Funds Electric Gas Sewer Water Airport Stormwater Management Other Enterprise Funds Total Enterprise Funds Internal Service Funds OPERATING REVENUES Charges for Services Residential Sales $ 145,569 $ 12,911 $ 44,011 $ 23,953 $ - $ 10,956 $ 44,302 $ 281,702 $ - Commercial and Industrial Sales 140,321 17,341 32,417 15,538 - 12,193 45,437 263,247 - Public Street and Highway Lighting 5,469 - - - - - - 5,469 - Sales for Resale 11,710 - - - - - - 11,710 - Surcharge 3,415 385 2,088 2,794 - - - 8,682 - Tapping Fees - 20 208 621 - - - 849 - Landing Fees - - - - 1,722 - - 1,722 - Initiating Service 812 127 - 437 - - - 1,376 - Rentals 1,601 - - - 13,158 - - 14,759 - Cut-ins and Cut Fees 981 19 - 77 - - - 1,077 - County Government - - - - - - 3,616 3,616 - Recreation Fees - - - - - - 1,387 1,387 - Transportation Fees - - - - - - 6,762 6,762 - Other Charges 6,418 422 3,540 2,723 2,733 986 744 17,566 238,355 Total Operating Revenues 316,296 31,225 82,264 46,143 17,613 24,135 102,248 619,924 238,355 OPERATING EXPENSES Personnel Services 46,237 3,667 19,052 10,957 8,034 8,212 58,041 154,200 54,959 Fossil Fuel 77,950 10,773 - - - - 310 89,033 - Power Purchased 5,506 - - - - - - 5,506 - Contractual Services 60,668 5,137 24,919 18,855 7,074 10,369 59,043 186,065 42,003 Materials and Supplies 15,742 266 7,573 2,433 275 656 4,408 31,353 116,816 Other 7,545 821 2,600 2,097 208 785 4,981 19,037 16,862 Depreciation 54,017 2,457 20,806 7,087 7,264 2,469 5,516 99,616 12,052 Amortization 26 - - - 7 - 437 470 5,754 Total Operating Expenses 267,691 23,121 74,950 41,429 22,862 22,491 132,736 585,280 248,446 Operating Income (Loss) $ 48,605 $ 8,104 $ 7,314 $ 4,714 $ (5,249) $ 1,644 $ (30,488) $ 34,644 $ (10,091) -- 48 of 220 -- ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 49 City of Tallahassee BASIC FInAnCIAL STAT eMen TS City of Tallahassee BASIC FInAnCIAL STATE mEnTS The notes to the financial statements are an integral part of these financial statements. Statement of Revenues, expenses and Changes in net Position Proprietary Funds For the Fiscal Year ended September 30, 2024 (in thousands) Enterprise Funds Electric Gas Sewer Water Airport Stormwater Management Other Enterprise Funds Total Enterprise Funds Internal Service Funds NON-OPERATING REVENUES (EXPENSES) Net Investment Earnings $ 8,253 $ 534 $ 2,415 $ 925 $ 1,009 $ 1,230 $ 1,456 $ 15,822 $ 2,876 Change in Fair Value of Investments 19,032 1,222 4,986 2,331 647 - 279 28,497 4,681 Securities Lending Securities Lending Income 194 9 56 19 28 28 28 362 66 Interest Expense (168) (8) (48) (16) (24) (24) (24) (312) (56) Agent Fees (5) - (1) - (1) (1) - (8) (1) Intergovernmental Revenues 965 2 7 14 1,892 - 3,286 6,166 897 Other Revenues 7,077 85 7,594 4,106 211 41 2,133 21,247 12,750 Interest Income - - - - - - - - 51 Interest Expense (12,907) (60) (6,259) (2,740) (1) (136) (569) (22,672) (1,960) Debt Issuance Costs (89) (5) (675) (260) - - (73) (1,102) - Gain (Loss) on Sale of Assets - - - - (428) - - (428) - Other Expenses (7,133) (6) (272) (403) (969) (156) (1,751) (10,690) (683) Total Non-Operating Revenues (Expenses) 15,219 1,773 7,803 3,976 2,364 982 4,765 36,882 18,621 Income (Loss) Before Capital Contributions and Operating Transfers 63,824 9,877 15,117 8,690 (2,885) 2,626 (25,723) 71,526 8,530 CAPITAL CONTRIBUTIONS AND TRANSFERS Capital Contributions - - - - 20,466 - 4,436 24,902 287 Transfers In 5,225 26 17,633 12,130 1,145 4,245 19,920 60,324 60,624 Transfers Out (53,951) (4,741) (25,480) (17,646) (1,455) (6,247) (12,890) (122,410) (37,966) Total Capital Contributions and Transfers (48,726) (4,715) (7,847) (5,516) 20,156 (2,002) 11,466 (37,184) 22,945 Change in Net Position 15,098 5,162 7,270 3,174 17,271 624 (14,257) 34,342 31,475 Net Position - October 1 429,043 72,604 251,519 96,802 155,496 241,241 28,763 1,275,468 76,125 Net Position - September 30 $ 444,141 $ 77,766 $ 258,789 $ 99,976 $ 172,767 $ 241,865 $ 14,506 1,309,810 $ 107,600 Adjustment to reflect the consolidation of internal service fund activities to enterprise funds (19,042) Change in net position of Business-type Activities $ 53,384 -- 49 of 220 -- 50 ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 City of Tallahassee BASIC FInAnCIAL STAT eMen TS City of Tallahassee BASIC FInAnCIAL STATE mEnTS The notes to the financial statements are an integral part of these financial statements. Statements of Cash Flows Proprietary Funds For the Fiscal Year ended September 30, 2024 (in thousands) Electric Gas Sewer Water Airport Stormwater Management Other Enterprise Funds Total Enterprise Funds Internal Service Funds CASH FLOWS FROM OPERATING ACTIVITIES Cash Received from Customers $ 313,773 $ 31,008 $ 80,783 $ 45,784 $ 17,616 $ 23,438 $ 110,071 $ 622,473 $ - Cash Received for Interfund Services - - - - - - - - 237,666 Cash Paid to Suppliers for Goods and Services (111,118) (10,728) (21,331) (11,239) (4,302) (5,113) (38,327) (202,158) (167,917) Cash Paid to Employees for Services (45,131) (3,597) (18,619) (10,785) (7,777) (7,999) (57,903) (151,811) (55,061) Cash Paid For Interfund Services (31,549) (4,309) (12,602) (11,809) (2,417) (7,520) (28,074) (98,280) (11,335) Net Cash Provided by (Used for) Operating Activities 125,975 12,374 28,231 11,951 3,120 2,806 (14,233) 170,224 3,353 CASH FLOW FROM NONCAPITAL FINANCING ACTIVITIES Transfers from Other Funds 5,225 26 17,633 12,130 1,145 4,245 19,920 60,324 60,624 Grant Receipts 965 2 7 14 1,892 - 3,286 6,166 897 Cash Received (Paid) From (For) Other Financing Activities (55) 79 5,029 2,634 (759) (114) 380 7,194 12,067 Cash Received (Paid) From (For) Interfund Activity 14,565 1,824 (14,635) (1,420) (49) 18,881 4,072 23,238 (25,405) Transfers To Other Funds (53,951) (4,741) (25,480) (17,646) (1,455) (6,247) (12,890) (122,410) (37,966) Net Cash Provided by (Used for) Noncapital Financing Activities (33,251) (2,810) (17,446) (4,288) 774 16,765 14,768 (25,488) 10,217 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Capital Contributions - - - - 20,466 - 4,436 24,902 287 Cash Received from System Charges - - 2,294 1,068 - - - 3,362 - Debt Issuance Costs (89) (5) (675) (260) - - (73) (1,102) - Cash Received (Paid) From Acquisition, Construction, and Sale of Capital Assets Activities (17,071) (3,458) (36,718) (22,800) (28,034) (5,938) (5,192) (119,211) (10,427) Proceeds From Bonds and Loans 199,190 - 174,247 51,408 - - 27,000 451,845 - Principal Payments on Bonds and Loans (259,437) (555) (194,655) (46,474) - - (888) (502,009) (875) Interest Paid (16,855) (96) (8,084) (3,263) (1) (136) (569) (29,004) (1,960) Other Cash Received (Paid) for Debt Issuance 33,498 - 41,390 9,863 - - - 84,751 - Net Cash Provided by (Used for) Capital and Related Financing Activities (60,764) (4,114) (22,201) (10,458) (7,569) (6,074) 24,714 (86,466) (12,975) -- 50 of 220 -- ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 51 City of Tallahassee BASIC FInAnCIAL STAT eMen TS City of Tallahassee BASIC FInAnCIAL STATE mEnTS The notes to the financial statements are an integral part of these financial statements. Statements of Cash Flows Proprietary Funds For the Fiscal Year ended September 30, 2024 (in thousands) Electric Gas Sewer Water Airport Stormwater Management Other Enterprise Funds Total Enterprise Funds Internal Service Funds CASH FLOWS FROM INVESTING ACTIVITIES Interest Received on Investments 8,113 506 2,489 936 1,046 1,130 1,320 15,540 2,978 Change in Fair Value of Investments 19,032 1,222 4,986 2,331 647 - 279 28,497 4,681 Net Cash Provided by (Used for) Investing Activities 27,145 1,728 7,475 3,267 1,693 1,130 1,599 44,037 7,659 Net Increase (Decrease) in Cash and Cash Equivalents 59,105 7,178 (3,941) 472 (1,982) 14,627 26,848 102,307 8,254 Cash and Cash Equivalents - October 1 197,628 12,577 60,803 14,734 32,408 21,832 3,018 343,000 52,764 Cash and Cash Equivalents - September 30 $ 256,733 $ 19,755 $ 56,862 $ 15,206 $ 30,426 $ 36,459 $ 29,866 $ 445,307 $ 61,018 Classified As: Unrestricted Assets $ 97,279 $ 5,266 $ - $ 1,178 $ 2,670 $ 36,459 $ 3,548 $ 146,400 $ 61,018 Restricted Assets 159,454 14,489 56,862 14,028 27,756 - 26,318 298,907 - $ 256,733 $ 19,755 $ 56,862 $ 15,206 $ 30,426 $ 36,459 $ 29,866 $ 445,307 $ 61,018 Reconciliation of Operating Income (Loss) to Net Cash Provided by (Used for) Operating Activities: Operating Income (Loss) $ 48,605 $ 8,104 $ 7,314 $ 4,714 $ (5,249) $ 1,644 $ (30,488) $ 34,644 $ (10,091) Adjustment to Reconcile Operating Income (Loss) to Net Cash Provided by (Used for) Operating Activities: Depreciation/Amortization 54,043 2,457 20,806 7,087 7,271 2,469 5,953 100,086 17,806 Net pension and OPEB liability changes 800 75 398 209 201 183 (52) 1,814 - Changes in Lease related deferred inflows - - - (287) (148) - 227 (208) - (Increase) Decrease in Accounts Receivable 134 (233) (462) (416) (10) (360) 381 (966) (79) (Increase) Decrease in Inventory (1,961) - 43 - - - 162 (1,756) (1,126) (Increase) Decrease in Deposits - - - - - - - - (135) Increase (Decrease) in Lease Receivable - - - 255 145 - (229) 171 - (Increase) Decrease in Notes Receivables 51 - 11 - - - - 62 - (Increase) Decrease in Due From Other Governments (41) (2) (520) (162) (20) - 9,111 8,366 131 Increase (Decrease) in Accounts Payable 23,252 1,739 266 (120) 838 (1,160) 430 25,245 962 Increase (Decrease) in Due to Other Governments (4) - - - - - - (4) (654) Increase (Decrease) in Utility Deposits Payable 790 239 - 540 37 - - 1,606 - Increase (Decrease) in Customer Contracts Payable - - 339 168 - - - 507 - Increase (Decrease) in Compensated Absences 306 (5) 36 (37) 55 30 188 573 (101) Increase (Decrease) in Insurance Deposits - - - - - - - - (3,360) (Increase) Decrease in Unearned Revenue - - - - - - 84 84 - Total Adjustments 77,370 4,270 20,917 7,237 8,369 1,162 16,255 135,580 13,444 Net Cash Provided by (Used for) Operating Activities $ 125,975 $ 12,374 $ 28,231 $ 11,951 $ 3,120 $ 2,806 $ (14,233) $ 170,224 $ 3,353 Noncash Capital and Related Financing Activities: Increase of Assets and Liabilities as a result of Leases and SBITAs $ - $ - $ - $ - $ 7 $ - $ - $ 7 $ 6,132 -- 51 of 220 -- 52 ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 City of Tallahassee BASIC FInAnCIAL STATEmEnTS The notes to the financial statements are an integral part of these financial statements. Statement of net Position Fiduciary Funds September 30, 2024 (in thousands) Pension and other employee Benefit Trust Funds Custodial Fund ASSeTS Cash and Cash Equivalents $ 16,129 $ 326,132 Receivables Other Receivables 24 - Accrued Interest 6,086 - Taxes Receivable for Other Governments - 12,466 Total Receivables 6,110 12,466 Investments, at Fair Value Mutual Index Funds 190,517 - Private Equities 270,111 - Fixed Income Securities 378,330 - Domestic Equities 886,409 - International Equities 206,427 - Private Credit Funds 153,174 - Alternative Investments 282,997 - Timber 117,818 - Total Investments 2,485,783 - Securities Lending Collateral 65,694 - Total Assets $ 2,573,716 $ 338,598 LIABILITIeS AnD neT PoSITIon Liabilities Obligations Under Securities Lending $ 65,694 $ - Accounts Payable - 618 Total Liabilities 65,694 618 neT PoSITIon Net Position Restricted for Pensions 2,490,444 - Net Position Restricted for OPEB 17,578 - Net Position Restricted for Other Governments - 337,980 Total Net Position 2,508,022 337,980 Total Liabilities and Net Position $ 2,573,716 $ 338,598 -- 52 of 220 -- ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 53 City of Tallahassee BASIC FInAnCIAL STATEmEnTS The notes to the financial statements are an integral part of these financial statements. Statement of Changes in net Position Fiduciary Funds For the Fiscal Year ended September 30, 2024 (in thousands) Pension and other employee Benefit Trust Funds Custodial Fund ADDITIonS Contributions Employer $ 46,813 $ - Plan Members 14,090 - Total Contributions 60,903 - Investment Return From Investment and Custodial Activities Gain (Loss) on Sale of Investments 127,178 - Change in Fair Value of Investments 190,643 - Interest Income 30,776 8,424 Dividends 20,938 - Sales Taxes Collected for Other Governments - 51,955 Grants Collected for Other Governments - 1,640 Loan Proceeds Collected for Other Governments - 4,295 Bond Proceeds - 136,451 Total Income (Loss) From Investment and Custodial Activities 369,535 202,765 Less Investment Expenses Investment Management Fees 6,703 - Interest Expense 130 - Net Income (Loss) from Investment and Custodial Activities 362,702 202,765 From Securities Lending Activities Securities Lending Income 5,253 - Less Securities Lending Expenses Investment Management Fees 5,003 - Net Income (Loss) from Securities Lending Activities 250 - Total Net Income (Loss) from Investment and Custodial Activities 362,952 202,765 Total Additions 423,855 202,765 DeDUCTIonS Benefits 139,183 - Refunds of Contributions 1,443 - Administrative Expense 1,204 - Payments on Behalf of Blueprint Intergovernmental Agency - 79,577 Payments on Behalf of Capital Region Transportation Planning Agency - 549 Total Deductions 141,830 80,126 Change in Net Position 282,025 122,639 Net Position - October 1 2,225,997 215,341 Net Position - September 30 $ 2,508,022 $ 337,980 -- 53 of 220 -- 54 ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 This Page Intentionally Left Blank -- 54 of 220 -- ANNUAL FINANCIAL REPORT CITY OF ATLANTIS ANNUAL FINANCIAL REPORT RADFORD UNIVERSITY Annual Comprehensive Financial Report CITY OF TALLAHASSEE, FLORIDA Notes to Financial Statements ● Note I - Summary of Significant Accounting Policies ● Note II - Reconciliation of Government-Wide and Fund Financial Statements ● Note III - Stewardship, Compliance, and Accountability ● Note IV - Detailed Notes - All Funds ● Note V - Other Information -- 55 of 220 -- 56 ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 City of Tallahassee nOTES TO FInAnCIAL STATEmEnTS notes to Financial Statements September 30, 2024 note I - Summary of Significant Accounting Policies A. Reporting entity The City is a political subdivision of the State of Florida, located in Leon County in the center of the Florida Panhandle. It is approximately 104.7 square miles in area. It is the capital of Florida, the county seat, and the only incorporated municipality in Leon County. The City was incorporated in 1825 following a decision by the Florida Legislature to locate the capital of the new Florida Territory midway between the population centers of St. Augustine and Pensacola. In the Code of Ordinances, Chapter 8374, Laws of Florida, Special Acts 1919, the City was granted a new City Charter by the State Legislature authorizing a Commission-Manager form of government. In the original charter, the five City Commissioners were elected at large for four-year terms and each year, the Commissioners selected the Mayor for a one-year term to act as the official representative for the City. Tallahassee voters approved a charter change in November 1996 calling for a separately elected Mayor, thereby changing the structure of the Tallahassee City Commission. The first elected Mayor was elected in February 1997 for a four-year term. The elected Mayor has powers commensurate with the other four members of the City Commission; however, he/she is able to serve as an ongoing contact for matters involving other governmental or institutional organizations, including the state legislature, county government, and local universities. The City provides a full range of municipal services to its citizens. These services include public safety (police and fire), construction and maintenance of streets and sidewalks, stormwater management, recreation, public improvements, planning and zoning, and general administrative services. In addition, the City owns and operates ten enterprise funds which include an international airport, a bus system, a golf course, a solid waste collection system, four utilities (an electric generation transmission and distribution system, a natural gas distribution system, a water production and distribution system, and a sewage collection and treatment system), fire services, and a stormwater system. In evaluating the City as a reporting entity, management has addressed all potential component units for which the City may or may not be financially accountable and, as such, be includable within the City’s financial statements. The City (the primary government) is financially accountable if it appoints a voting majority of the organization’s governing board and (1) it is able to impose its will on the organization or (2) there is a potential for the organization to provide specific financial benefit to or impose specific financial burden on the City. Additionally, the primary government is required to consider other organizations for which exclusion of the nature and significance of their relationship with the City would cause the reporting entity’s financial statements to be misleading or incomplete. The accompanying financial statements present the City and its component units, entities for which the City is considered to be financially accountable. Blended component units, although legally separate entities, are in substance part of the City’s operation. The discretely presented component unit is reported in a separate column in the government-wide financial statements to emphasize that it is legally separate from the City. 1. Blended Component Unit The City of Tallahassee Community Redevelopment Agency (CRA) was created in August 1998. The CRA Board was established in September 1998, and the Board membership was amended in September 2002, October 2007 and May 2018. The CRA was governed by an interlocal agreement between the City of Tallahassee, Leon County and the CRA that addresses, among other things, Board membership. Until May 24, 2018 the CRA Board membership included four Leon County Commissioners. However, on that date County participation as members to the CRA Board ended with the execution of the fourth amendment to the interlocal agreement. The CRA board is now composed of the same members of City Commission therefore the City Commission has influence and operational responsibility over CRA. The City of Tallahassee provides the CRA with professional and technical services such as, but not limited to, accounting, procurement, human resources, in-house legal, treasurer-clerk support and information systems. All revenues of the CRA are used in the following two districts to fund capital improvements within each district or to fund the debt service requirements of debt related to the CRA. -- 56 of 220 -- ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 57 City of Tallahassee nOTES TO FInAnCIAL STATEmEnTS Note I - Summary of Significant Accounting Policies (Continued) A. Reporting entity (Continued) Greater Frenchtown/Southside Community Redevelopment Area (GFSCRA) - The City Commission adopted the Greater Frenchtown/Southside Community Redevelopment Plan in June 2000. The GFSCRA consists of three distinct geographical sections of 1,859 acres of residential, commercial/retail and industrial land uses, located within the greater Frenchtown and Southside neighborhoods. The City Commission approved two expansions for the GFSCRA, one in 2016 and another in 2018, adding 578 parcels and over 400 acres, increasing the GFSCRA to 2,837 acres. Downtown District Community Redevelopment Area (DDCRA) - The City Commission adopted the Downtown Community Redevelopment Plan in June 2004. The DDCRA consists of approximately 440 acres located in downtown and between the northern and southern portions of the Greater Frenchtown/South Community Redevelopment Area. 2. Discretely Presented Component Unit Downtown Improvement Authority - The Downtown Improvement Authority (DIA) is an agency created by the Florida Legislature to regulate downtown growth. The City Commission appoints the governing board of the DIA. The City can impose its will on the DIA by approving and/or modifying its budget. There are no separately issued financial statements for the DIA. The DIA utilizes governmental fund accounting. 3. Joint Ventures excluded from the Reporting entity Sunshine State Governmental Financing Commission The Sunshine State Governmental Financing Commission (the “Commission”) was created in 1985 through an interlocal agreement between the City of Tallahassee and the City of Orlando, Florida. Subsequently, a number of other Florida cities and counties joined the Commission. The Commission was created to provide active and more sophisticated debt issuers the opportunity to work together to create low cost, flexible financing instruments. On June 27, 2022, the Board of Directors of the Commission adopted a plan of dissolution which dissolved the Commission on April 5, 2023. Capital Region Transportation Planning Agency In December 2004, the Capital Region Transportation Planning Agency (CRTPA) was created through an interlocal agreement to act as the principal forum for collective transportation policy discussions that results in the development of a long range transportation plan which creates an integrated regional multimodal transportation network that supports sustainable development patterns and promotes economic growth. The CRTPA consists of voting representatives from Leon County, Gadsden County, Jefferson County, and Wakulla County; the City of Tallahassee, the City of Midway, the City of Quincy, the City of Chattahoochee, the City of Greensboro, the City of Gretna, and the Town of Havana; the Leon County School Board; and one non-voting representative from the Department of Transportation. The CRTPA receives federal and state transportation funds for the performance of its transportation planning and programming activities. If operating expenses exceed the external funding obtained, the deficit is funded by the members of the CRTPA in proportion to their weighted votes. As a participating member of CRTPA, the City therefore has a limited share of financial responsibility for any such deficits. Current audited financial statements may be obtained from the Capital Region Transportation Planning Agency, 300 S. Adams Street, Box A-19, Tallahassee, Florida 32301. Consolidated Dispatch Agency In December 2006, the Consolidated Dispatch Agency (CDA) was created through an inter-local agreement between the City of Tallahassee (City) and Leon County, Florida (County), and the Leon County Sheriff (Sheriff). The purpose of the CDA is to provide law enforcement and emergency dispatch services to the City and Leon County, Florida. On April 1, 2014, the commencement date, all existing dispatch operations personnel of the City, Sheriff, and the County became part of the CDA. The City of Tallahassee City Manager, the Leon County Administrator and the Leon County Sheriff constitute the CDA’s Board of Directors. -- 57 of 220 -- 58 ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 City of Tallahassee nOTES TO FInAnCIAL STATEmEnTS Note I - Summary of Significant Accounting Policies (Continued) A. Reporting entity (Continued) The CDA is primarily funded by the City of Tallahassee and the Leon County Sheriff based upon the per capita population within the incorporated limits of the City of Tallahassee and within the unincorporated area of Leon County. For the twelve month period ended September 30, 2024, the City’s contribution to the CDA was $8,059,907. Audited financial statements may be obtained from the Consolidated Dispatch Agency, 300 S. Adams Street, Box A-19, Tallahassee, Florida 32301. 4. Jointly Governed organization City of Tallahassee-Leon County Blueprint Intergovernmental Agency In October 2000, the City entered into an inter-local agreement with Leon County as authorized by Section 163.01(7) Florida Statutes. This agreement created the Blueprint Intergovernmental Agency (Blueprint) to govern the project management for the project planning and construction of a list of projects known as the Blueprint projects. The Board of County Commissioners and the City Commission constitute the Blueprint Intergovernmental Agency. The revenues to fund the projects under this agreement are the collections of the local government infrastructure sales surtax, which began December 1, 2004. This tax was extended pursuant to the provisions in Section 212.055, Florida Statutes, until December 31, 2039. In response to the passage of the extension, Blueprint also opened the Office of Economic Vitality whose purpose is to invest in and cultivate the evolving economic development landscape. Current audited financial statements may be obtained from Blueprint Intergovernmental Agency, 315 S. Calhoun St., Suite 450, Tallahassee, Florida 32301. B. Government-Wide and Fund Financial Statements The government-wide financial statements (i.e., the Statement of Net Position and the Statement of Activities) report information on all of the nonfiduciary activities of the primary government and its component units. With the exception of interfund services provided and used, the effect of interfund activity has been eliminated in the process of consolidation. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. Likewise, the primary government is reported separately from certain legally separate component units for which the primary government is financially accountable. The Statement of Activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those expenses that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operation or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the latter are excluded from the government-wide financial statements. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation Basis of accounting refers to when revenues, expenditures or expenses are recognized in the accounts and reported in the financial statements. Basis of accounting relates to the timing of the measurements made, regardless of the measurement focus applied. The government-wide financial statements, proprietary fund, and fiduciary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year taxes are levied. Grants and similar items are recognized as revenues as soon as all eligibility requirements imposed by the provider have been met. Primarily grant revenues are susceptible to accrual. -- 58 of 220 -- ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 59 City of Tallahassee nOTES TO FInAnCIAL STATEmEnTS Note I - Summary of Significant Accounting Policies (Continued) C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued) Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the government considers all revenues to be available if they are collected within 60 days of the end of the current fiscal period with the exception of grant revenues which are considered available if collected within 270 days. Revenues susceptible to accrual include grant and shared revenues. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, lease liabilities, subscription liabilities, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due. The government reports the following major governmental fund: The General Fund is the government’s primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. The government reports the following major proprietary funds: The Electric Fund accounts for the assets, operation and maintenance of the City-owned electric generation, transmission, and distribution system. The Gas Fund accounts for the assets, operation and maintenance of the City-owned gas system. The Sewer Fund accounts for the assets, operation and maintenance of the City’s wastewater system. The Water Fund accounts for the assets, operation, and maintenance of the City’s water production and distribution system. The Airport Fund accounts for the assets, operation, and maintenance of the City-owned international airport. The Stormwater Management Fund accounts for the assets, operation, maintenance, and expansion of the City-owned stormwater utility system. Additionally, the government reports the following fund types: Internal Service Funds account for various services provided to other departments of the government and to other governments on a cost reimbursement basis. The services provided include an 800 MHz system, revenue collection, technology and information services, accounting, purchasing, fleet management, human resources, employee retirement plan administration, risk management, internal loan program, utility services functions, wholesale energy services, environmental services and facilities management, diversity and inclusion, and community relations. The Pension and Other Employee Benefits Trust Funds include the Pension Trust Fund and the OPEB Trust Fund. The Pension Trust Fund includes a Defined Benefit Plan and a Defined Contribution Plan. It is used to account for the accumulation of resources to be used for retirement annuity payments to retired City employees. The Defined Benefit Plan accounts for general employees, police officers, and fire fighters separately. The Defined Contribution Plan covers all employees who elect to contribute a portion of their salary to the plan. For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the general employees, police officers and fire fighters pension plans, and additions to/deductions from the respective plan’s fiduciary net position have been determined on the same basis as they are reported by each of the plans. For this purpose, benefits payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. The OPEB Trust Fund accounts for the accumulation of resources to be used for benefit payments for retirees’ health care costs. The Custodial Fund is used to account for the funds held on behalf of two of the related but legally separate entities listed in Note 1.A. The first is the Capital Regional Transportation Planning Agency (CRTPA), a joint venture, and the second is the Blueprint Intergovernmental Agency (BPIA), a jointly governed organization. The City collects, invests and disburses funds on behalf of these two entities and there are also agreements in place with both for the City to carry out several administrative functions. -- 59 of 220 -- 60 ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 City of Tallahassee nOTES TO FInAnCIAL STATEmEnTS Note I - Summary of Significant Accounting Policies (Continued) C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued) As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements. Amounts reported as program revenues include 1) charges to customers or applicants for goods, services, or privileges provided, and fines and forfeitures, 2) operating grants and contributions, and 3) capital grants and contributions, including special assessments. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes. Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the enterprise funds, and of the City’s internal service funds, are charged to customers for sales and services. The water and sewer funds also recognize as operating revenue the portion of the tap fees intended to recover the cost of connecting new customers to the system. Operating expenses for enterprise funds and internal service funds include the costs of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses that do not meet this definition are reported as nonoperating revenue and expenses. When both restricted and unrestricted resources are available for use, it is the City’s policy to use restricted resources first, and then unrestricted resources as they are needed. D. Assets, Liabilities, Deferred Inflows/outflows of Resources, and net Position 1. Cash And Cash equivalents The City considers cash on hand, demand deposits, liquid investments with an original maturity of 90 days or less, and balances included within its cash and investments pool to be cash and cash equivalents. The City’s cash and investments pool is an internal cash management pool used to obtain efficiencies of operation and improved financial performance, and includes certain non-pension cash, cash equivalent, and investment securities. Each fund maintains a share in the equity of the pool which is reported as cash and cash equivalents in the statements of net position since cash may be withdrawn from the pool at any time without penalty. Liquid investments classified as cash and cash equivalents include repurchase agreements purchased under the terms of the City’s depository contract, open repurchase agreements, certificates of deposit, banker’s acceptances, commercial paper, U.S. Treasury direct and agency obligations, holdings at the FLCLASS investment pool and the Florida League of Cities 1-3 Year Pool funds. Interest earned by the cash and investments pool is distributed to each fund monthly based on daily balances. The City’s bank balances are insured by federal depository insurance and, for the amount in excess of such federal depository insurance, by the State of Florida’s Public Depository Act (the Act). Provisions of the Act require that public deposits may only be made at qualified public depositories. The Act requires each qualified public depository to deposit with the State Treasurer eligible collateral equal to or in excess of the required collateral as determined by the provisions of the Act. In the event of a failure by a qualified public depository, losses, in excess of federal depository insurance and proceeds from the sale of the securities pledged by the defaulting depository, are assessed against the other qualified public depositories of the same type as the depository in default. When other qualified public depositories are assessed additional amounts, they are assessed on a pro-rata basis. 2. Investments The City’s investments are pension and other trust fund assets held in the fiduciary funds. Investments are carried at fair value, except for those investments for which net asset value or amortized cost is the most appropriate measurement. The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs. Investments classified in Level 1 of the fair value hierarchy are valued using prices quoted in active markets. Only equities (stock holdings) held by the City’s pension trust fund are classified as Level 1 investments. Investments classified in Level 2 of the fair value hierarchy are based upon observable, market-based inputs for similar, but not identical, investments. Debt securities classified in Level 2 of the fair value hierarchy are valued using a matrix pricing technique. Matrix pricing is used to value securities based on the securities’ relationship to benchmark quoted prices. The City’s custodian uses the pricing services of multiple vendors to price the same assets to determine the most accurate price. Investments classified in Level 3 of the fair value hierarchy are based upon extrapolated data, proprietary pricing models and indicative quotes for -- 60 of 220 -- ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 61 City of Tallahassee nOTES TO FInAnCIAL STATEmEnTS Note I - Summary of Significant Accounting Policies (Continued) D. Assets, Liabilities, Deferred Inflows/Outflows of Resources, and Net Position (Continued) similar securities. The City has relatively few investments that are classified as Level 3 for securities that are not traded frequently. The City has several investments that have their fair value determined by the net asset value of the investment holding. Investments in this category are not classified according to Levels 1, 2 and 3 of the fair value hierarchy. 3. Leases As of October 1, 2021, the City adopted the provisions of GASB 87, Leases, which amended the existing accounting standards for lease reporting. The new guidance requires lessors in a leasing arrangement to recognize a lease receivable and a deferred inflow of resources for most leases (other than leases that meet the definition of a short-term lease) at lease commencement. The liability (lessees) or deferred inflow (lessors) will be equal to the present value of lease payments expected to be received during the lease term. The deferred inflow of resources is recorded at the initiation of the lease in an amount equal to the initial recording of the lease receivable. The deferred inflow of resources is amortized on a straight-line basis over the term of the lease. Additionally, the new guidance requires lessees in a leasing arrangement recognize a right to use asset and a lease liability for most leases (other than leases that meet the definition of a short-term lease) at lease commencement. The liability will be equal to the present value of lease payments. 4. Inventory The City maintains a variety of inventory types, such as fuel, materials and supplies, and retail merchandise, all of which utilize the consumption method stated at cost which approximates the market. Inventory cost is determined using either the first-in, first-out method or the average cost method. Perpetual inventory records are maintained for all significant inventories. Reported inventories of the General Fund are equally offset by a reservation of fund balance (non-spendable), since they are unavailable for appropriation. 5. Advances to other Funds When applicable, noncurrent portions of interfund loans receivable (reported in “Advances to” asset accounts) of governmental funds are equally offset by a fund balance reserve account which indicates that they do not constitute “available spendable resources” since they are not a component of net current assets. Current portions of interfund receivables (reported in “Due from” asset accounts) are considered “available spendable resources.” 6. Restricted Assets Certain proceeds of the City’s enterprise funds revenue bonds, as well as certain resources set aside for their repayment, are classified as restricted assets on the Statement of Net Position because their use is limited by applicable bond covenants. Assets are set aside for the following uses: Revenue Bonds Current Debt Service – used to segregate resources accumulated for debt service payments over the next twelve months. Revenue Bonds Future Debt Service – used to report resources set aside to make up potential future deficiencies in the revenue bonds current debt service account. Revenue Bonds Renewal and Replacement – used to report resources set aside to fund asset renewals and replacements or to meet unexpected contingencies. 7. Capital Assets Capital assets and right to use leased assets, which include land, buildings, equipment, improvements other than buildings, intangibles and public domain infrastructure assets, are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. Capital assets, other than land and infrastructure, are defined as assets with a cost of $5,000 or more and an estimated useful life greater than one year. Land and infrastructure assets are long-lived capital assets that are stationary in nature and can be preserved for a significantly greater number of years than most general capital assets. Examples of infrastructure assets are roads, bridges, sidewalks, paved paths, utility systems, stormwater drainage systems, traffic control and lighting systems. In the initial capitalization of general infrastructure assets, the City chose to include all such items regardless of their acquisition date or amount. The City was able to estimate the historical cost for the initial reporting of these assets through back trending (i.e., estimating the current replacement cost of the infrastructure to be capitalized and -- 61 of 220 -- 62 ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 City of Tallahassee nOTES TO FInAnCIAL STATEmEnTS Note I - Summary of Significant Accounting Policies (Continued) D. Assets, Liabilities, Deferred Inflows/Outflows of Resources, and Net Position (Continued) using an appropriate price-level index to deflate the cost to the acquisition year or estimated acquisition year). As the City constructs or acquires additional capital assets each period, they are capitalized and reported at historical cost. The capitalization threshold for infrastructure assets has been set at $100,000 for roadways and $50,000 for other infrastructure assets. Land assets have no capitalization threshold, therefore all city-owned land is capitalized. All reported capital assets, except land and construction in progress, and all reported right to use leased assets are depreciated/amortized. Other capital assets are recorded at historical cost when purchased or constructed. Donated capital assets, donated works of art and similar items, and capital assets received in a service concession arrangement are reported at acquisition cost. The costs of normal maintenance and repairs that do not add to the value of the assets or materially extend asset lives are not capitalized. Major outlays for constructed capital assets and improvements are capitalized as projects are completed. The right to use assets are initially measured at an amount equal to the present value of the related lease liability plus any lease payments made prior to the lease term, less lease incentives, and plus ancillary charges necessary to place the lease into service. The right to use assets are amortized on a straight-line basis over the life of the related lease. The right to use Subscription-Based Information Technology Arrangement (SBITA) assets are initially measured at an amount equal to the present value of the SBITA liability plus any SBITA payments made at the start of the SBITA term, if applicable, plus capitalizable initial implementation costs at the start of the SBITA term, less any incentives received from the SBITA vendor at the start of the SBITA term. The right to use SBITA assets are amortized on a straight-line basis over the SBITA term. Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the fund’s financial statements. These general capital assets are included in the governmental activities column of the government-wide financial statements. Capital assets used in the Enterprise and Internal Service Funds are accounted for in the respective funds. All vehicles of the City are accounted for in the Garage Fund, an Internal Service Fund, with the exception of StarMetro vehicles (generally buses). StarMetro vehicles are accounted for in their own fund. Depreciation on all exhaustible capital assets used in the Enterprise and Internal Service Funds is charged as an expense against their operations. Accumulated depreciation is reported on the respective fund’s balance sheet. Capital assets are depreciated using the straight-line method over the following estimated useful lives: Assets Years Buildings 20 to 40 Right to Use Leased Buildings based on lease term Improvements other than buildings 10 to 40 Equipment and machinery 5 to 40 Right to Use Leased Equipment based on lease term Vehicles 5 to 20 Infrastructure 10 to 60 SBITAs based on SBITA term 8. Deferred outflows of Resources Deferred outflows of resources represent a consumption of net assets that applies to a future period and will not be recognized as an outflow of resource (expense) until then. Changes in the fair value of effective hedging derivatives are reported as deferred inflows or outflows of resources. The deferred losses on refunding results from the difference in the carrying value of refunded debt and reacquisition price. The amount is deferred and amortized over the shorter of the life of the refunded or refunding debt. The amounts for pensions and OPEB relate to certain differences between projected and actual actuarial results, certain differences between projected and actual investment earnings, as well as contributions between measurement and reporting dates, which are accounted for as deferred outflows of resources. -- 62 of 220 -- ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 63 City of Tallahassee nOTES TO FInAnCIAL STATEmEnTS Note I - Summary of Significant Accounting Policies (Continued) D. Assets, Liabilities, Deferred Inflows/Outflows of Resources, and Net Position (Continued) 9. Compensated Absences All non-union employees earn vacation and sick leave starting with the first day of employment; all non-union employees earn vacation and sick leave based on the number of hours worked. Vacation leave is earned based on creditable service hours worked as follows: executive Senior Management General Creditable Service Hours Leave earned per hour Creditable Service Hours Leave earned per hour Creditable Service Hours Leave earned per hour 0 - 2,079 0.057693 0 - 2,079 0.057693 0 - 10,400 0.057693 2,080 - 10,400 0.080770 2,080 - 10,400 0.069231 10,401 - 20,800 0.069231 10,401 - 20,800 0.092308 10,401 - 20,800 0.080770 20,801 - 41,600 0.080770 over 20,800 0.103847 20,801 - 41,600 0.092308 over 41,600 0.092308 over 41,600 0.103847 A maximum of 344 hours of vacation leave time may be carried over from one calendar year to the next for executive employees and a maximum of 264 hours for senior management and general employees. An employee who terminates employment with the City is paid for any unused vacation leave accumulated to the time of termination. Sick leave is earned at the rate of .023077 hours for each hour of service with no maximum limit on the number of hours which may be accumulated. A non-unionized employee who terminates from the City for any reason other than termination for cause will be paid one-half of the total amount of sick leave (without regard to catastrophic illness leave) accumulated by the employee on the effective date of termination. A unionized employee who terminates from the City for any reason other than termination for cause will be paid one-third of the total amount of sick leave without regard to catastrophic illness leave accumulated by the employee on the effective date of termination. If the employee dies, the sick leave amount will be paid to the employee’s beneficiary or estate. Retiring employees can elect the option of using the accumulated sick leave amount to purchase single coverage health insurance in lieu of receiving payment. Accumulated current and long-term vacation and sick pay amounts are accrued when incurred in the government-wide and proprietary fund financial statements. A liability for the amounts is reported in the governmental funds only if they have matured, as a result of employee resignation and retirements. Employees covered by the Police and Fire bargaining units shall accrue vacation time on the following basis: Police Bargaining Unit Fire Bargaining Unit Suppression Personnel Forty-hour Personnel Creditable Service Hours Leave earned Per Hour Years of Continuous Service Hours Accrued Monthly Years of Continuous Service Hours Accrued Monthly 0-10,400 0.046154 1-5 years 13.25 1-5 years 10 10,401-20,800 0.057693 6-10 years 15.90 6-10 years 12 20,801-41,600 0.069231 11-15 years 18.55 11-15 years 14 over 41,600 0.080770 16-20 years 21.20 16-20 years 16 over 20 years 23.85 over 20 years 18 For employees covered by the Police bargaining unit, accrued vacation time may not be carried over in excess of 33 days (264 hours). As of the end of the calendar year, accrued vacation time in excess of 264 hours shall be reduced to no more than 264 hours for any individual employee. For employees covered by the Fire bargaining unit, accrued vacation at the end of the calendar year may not be carried over in excess of 264 hours for 40-hour supervisory personnel, and 350 hours for 53-hour supervisory personnel. For non-supervisory firefighters who are 40-hour personnel, accrued vacation time may not carry over in excess of 240 hours in a calendar year, and for non-supervisory firefighters who are 53-hour personnel, accrued vacation time may not carry over in excess of 318 hours in a calendar year. -- 63 of 220 -- 64 ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 City of Tallahassee nOTES TO FInAnCIAL STATEmEnTS Note I - Summary of Significant Accounting Policies (Continued) D. Assets, Liabilities, Deferred Inflows/Outflows of Resources, and Net Position (Continued) Employees covered by the Police bargaining unit shall accrue sick leave at the rate of .046154 hours per hour worked, which is the fractional equivalent of eight (8) hours per month. There is no maximum limit on the number of hours which may be accumulated by an employee. Employees covered by the Fire bargaining unit shall accrue sick leave credit at the rate of 10.6 hours of sick leave per month for suppression personnel and 8 hours of sick leave per month for forty-hour personnel. There is no maximum limit on the number of sick leave hours which may be accumulated by an employee. For employees covered by the Police bargaining unit, payment for sick leave will be made for 33 1/3% (1/3) of the unused sick leave balance credited to an employee at the time of retirement or death, up to a maximum of seven hundred (700) hours, provided that the unused sick leave balance credited to the employee at the time of retirement or death equals at least three hundred (300) hours. If the unused sick leave balance credited to an employee at the time of retirement or death equals less than three hundred (300) hours, payment will be made for 25% (1/4) of the unused balance. For employees covered by the Fire bargaining unit, a fire suppression employee who retires or dies will be paid for 33 1/3% (1/3) of the unused sick leave balance credited to the employee at the time of retirement or death, provided that the unused sick leave balance credited to the employee at the time of retirement or death equals at least three hundred ninety-eight (398) hours. If the unused sick leave balance credited to the employee at the time of retirement or death equals less than 398 hours, the employee who retires or dies will be paid 25% (1/4) of the unused balance. A 40-hour employee who retires or dies will be paid for 33 1/3% (1/3) of the unused sick leave balance credited to the employee at the time of retirement or death, provided that the unused sick leave balance credited to the employee at the time of retirement or death equals at least three hundred (300) hours. If the unused sick leave balance credited to the employee at the time of retirement or death equals less than three hundred (300) hours, the employee will be paid for 25% (1/4) of the unused balance. An employee who accidentally dies while engaged in the performance of their firefighter duties, or who receives accidental bodily injury which subsequently results in the loss of their life within one (1) year after being received, provided that such a death is not the result of suicide and that such bodily injury is not intentionally self-inflicted, and the accidental death occurs as a result of the firefighter’s response to what is reasonably believed to be an emergency involving the protection of life or property, will be paid 100% of the accrued but unused sick leave credited to them at the time of death. In either of the above-described cases, the payment for unused sick and vacation leave will be made at the employee’s straight time base rate. 10. Bond Premiums, Discounts and Refunding Gains and Losses In the government-wide financial statements and in the proprietary fund statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund statement of net position. Bond premiums and discounts are amortized over the life of the bonds at the rate at which principal payments are made which approximates the effective interest method. Bond issuance costs are expensed in the year they are incurred. Bond refunding gains and losses are deferred and amortized over the remaining life of the old debt or the life of the new debt, whichever is shorter, using the effective interest method. As a result of adopting GASB Statement No. 65, there are deferred inflows and outflows related to gains and losses on bond refundings in the Government-Wide Statement of Net Position as well as in the Enterprise Funds Statements of Net Position. In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued and premiums on debt issuances are reported as other financing sources. Discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. 11. Deferred Inflows of Resources Deferred inflows of resources represent an acquisition of net assets that applies to a future period and so will not be recognized as an inflow of resource (revenue) until that time. Changes in the fair value of effective hedging derivatives are reported as deferred inflows or outflows of resources. The deferred gain on refunding results from the difference in the carrying value of refunded debt and reacquisition price. The amount is deferred and amortized over the shorter of the life of the refunded or refunding debt. The amounts for pensions and OPEB relate to certain differences between projected and actual actuarial results and certain differences between projected and actual -- 64 of 220 -- ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 65 City of Tallahassee nOTES TO FInAnCIAL STATEmEnTS Note I - Summary of Significant Accounting Policies (Continued) D. Assets, Liabilities, Deferred Inflows/Outflows of Resources, and Net Position (Continued) investment earnings, which are accounted for as deferred inflows of resources. The city also recognizes a deferred inflow of resources at the initial measurement of lease receivables. The deferred inflow of resources is recorded at the initiation of the lease in an amount equal to the initial recording of the lease receivable. The deferred inflow of resources is amortized on a straight-line basis over the term of the lease. 12. Indirect Cost Allocation The City currently employs an indirect cost allocation system based upon an internal cost analysis. An administrative service fee is charged by the General Fund to the other operating funds to address General Fund administrative services provided (e.g., legal, cash management, internal audit, and executive services). At the fund-level statements, the administrative service fee is included in the General Fund’s Miscellaneous Revenue line item and in the other operating funds in the Contractual Services line. This administrative service fee is eliminated at year-end in the government-wide statements. 13. Fuel Management Program In connection with the purchase of natural gas, diesel fuel, and unleaded gasoline, the City has developed and implemented a fuels management program intended to manage the risk of changes in the market prices of natural gas, diesel fuel, and unleaded gasoline. Pursuant to this program the City executes fixed price and option contracts as needed to manage fluctuations in the market price of such fuels. The contracts are recorded at fair value on the Statement of Net Position as they have been determined to qualify as derivative instruments under GASB Statement No. 53, “Accounting and Financial Reporting for Derivative Instruments”. Such amounts are included in noncurrent assets and deferred inflows of resources. Any associated margin deposits are also recorded in noncurrent assets. The net amounts received or paid under expired or closed contracts are recorded as an adjustment to fuel expense in the period realized. See Note V, section I. The City uses two different types of transactions to hedge natural gas volumes for future periods. The first is through the Chicago Mercantile Exchange (CME Group) where futures/options contracts are bought and sold through an Introducing Broker (IB) such as ADM Investor Services which the City uses. All “Exchange” based transactions require margining to make trades. The margin is composed of two parts, the initial margin which is meant to capture one day’s worth of volatility and the maintenance margin which equals the difference between the hedge price and the market price. Since no credit is extended to any party on the exchange, the City must maintain monies on hand or send enough margin monies to settle the positions on any given day. In order to enable exchange-based hedging, the City Commission authorized $30 million from the electric operating reserve fund for this purpose in November 2008. The majority of the hedging transactions in the fiscal year were bilateral Over The Counter (OTC) trades between the City and another counterparty. These types of transactions are subject to negotiated credit limits but not margining. The biggest risk to the City is the volatile price of natural gas. The goal of the hedging program is to reduce the size of this risk. The ratepayers pay for the natural gas costs through the ECRC and PGRC fuel clauses on their electric and gas bills. Because the City buys nearly $100 million worth of natural gas each year and market price can easily increase by 100%, it’s important for the City to manage this risk. The City is precluded from taking on more hedging positions on the exchange than it can support with the $30 million margining limit. If the City were to get close to the $30 million limit no more exchange-based trades would be executed. The hedging program is overseen by the Energy Risk Policy Committee (ERPC) which is comprised of the City Manager, City Attorney, Treasurer-Clerk, City Inspector General, an Assistant City Manager, the General Manager for the Electric & Gas Utility and senior utility staff. As of September 30, 2024, the City no longer had any open positions on the exchange. However, seventy-five percent of the City’s volumes are hedged in the OTC market with J Aron and Shell through September 2025. Because the City’s hedged positions are slightly above the market, the financial statements reflect $9,142,000 in deferred outflows with these counterparties. By trading with multiple, highly rated, counterparties in the OTC market the City diversifies its counterparty risk. The City uses an allowance account to manage fluctuations in future electric and gas costs. These costs are evaluated biannually and any amounts over or under recovered are amortized over the following six months. This allowance is included in Accounts and Retainage Payables. This Summary of Significant Accounting Policies is presented to assist the reader in interpreting the financial statements. The policies are considered essential and should be read in conjunction with the accompanying financial statements. The -- 65 of 220 -- 66 ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 City of Tallahassee nOTES TO FInAnCIAL STATEmEnTS accounting policies of the City conform to generally accepted accounting principles (GAAP) as applicable to governmental units. This report, the accounting systems and classification of accounts conform to standards of the Governmental Accounting Standards Board (GASB). note II - Reconciliation of Government-Wide and Fund Financial Statements A. explanation of Certain Differences Between the Governmental Funds Balance Sheet and the Government-Wide Statement of net Position The governmental funds balance sheet includes a reconciliation between fund balances – total governmental funds and net position – governmental activities as reported in the government-wide statement of net position. One element of that reconciliation explains that “long-term liabilities, including bonds payable, compensated absences, deferred outflows of resources, net pension liability, and net OPEB obligation are not due and payable in the current period and therefore are not reported in the funds.” The details of this $415,336 difference are as follows (in thousands): Bonds and Loans Payable including Premiums and Discounts $ (164,631) Effect of Deferred Loss on Refunding (3,377) Compensated Absences (11,970) Net OPEB Liability (37,202) Net Pension Liability (191,158) Lease/SBITA Liability (6,918) Cash Balances in Long Term Debt Fund (80) Net adjustments to reduce long-term liabilities of Total Governmental Funds to arrive at Net Position $ (415,336) B. explanation of Certain Differences Between the Governmental Statement of Revenues, expenditures, and Changes in Fund Balances and the Government-Wide Statement of Activities The governmental fund statement of revenues, expenditures, and changes in fund balances includes a reconciliation between net change in fund balances - total governmental funds and net change in net position of governmental activities as reported in the government-wide statement of activities. One element of that reconciliation states, “Capital Outlays are reported as expenditures in governmental funds. However, in the Statement of Activities, the cost of capital assets is allocated over their estimated useful lives as depreciation expense.” The details of this $17,766 difference are as follows (in thousands): Capital Outlay $ 20,823 Depreciation/Amortization Expense (38,589) Net adjustment to increase net change in Fund Balances Total Governmental Funds to arrive at Changes in Net Position Governmental Activities $ (17,766) -- 66 of 220 -- ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 67 City of Tallahassee nOTES TO FInAnCIAL STATEmEnTS note III - Stewardship, Compliance, and Accountability A. Budgetary Information Annual budgets are adopted on a basis consistent with generally accepted accounting principles for the General and Enterprise Funds. The budget is adopted at the fund level and administered at the department level. The difference between budgetary revenues and expenditures and modified accrual basis revenues and expenditures as reported in the general fund financial statements are explained in the budgetary comparison schedule Note to Required Supplementary Information of this report. The City Manager is authorized to transfer budget amounts within funds; however, any revision that alters the total expenditures of any fund must be approved by the City Commission. Unencumbered appropriations are closed at year-end. Encumbrance accounting, under which requisitions, purchase orders, contracts, and other commitments for the expenditures of resources are recorded to reserve that portion of the applicable appropriation, is employed as an extension of formal budgetary integration in the governmental funds. B. Compliance with Finance - Related Legal and Contractual Provisions The City had no material violations of finance-related legal or contractual provisions. C. Deficit Fund equity - Fund Balance of Individual Funds At the end of the fiscal year, the following funds had these listed deficits: nonmajor governmental fund, Gas Tax $758,098; and Internal Service funds, Human Resources $414,749, Diversity and Inclusion $3,662 and Community Relations $31,440. note IV - Detailed notes - All Funds A. Cash, Cash equivalents, and Investments The City reports the following cash, cash equivalents and investments in the statements of net position at September 30, 2024 (in thousands): Primary Government Component Unit Fiduciary Funds - Pension/oPeB Fiduciary Funds - Custodial Fund Cash and cash equivalents $ 270,959 $ 319 $ 16,129 $ 326,132 Cash and cash equivalents – restricted 408,784 - - - Investments - - 2,485,783 - Total $ 679,743 $ 319 $ 2,501,912 $ 326,132 As discussed in Note I.D. the City’s cash and cash equivalents include cash, cash equivalents, and funds held in a cash and investments pool. The City’s investments are monies held by the City’s pension funds. According to the City Charter, the City Treasurer-Clerk is designated to invest all monies belonging to the City pursuant to the policies approved by the City Commission, except those monies in the pension funds. Monies in the pension funds are invested under the auspices of the City Charter-created Sinking Fund Commission, which consists of the five City Commissioners and three appointed members. Under the policies approved by the City Commission and the Sinking Fund Commission, the day-to-day investment of all monies is managed by the City Treasurer-Clerk. The City has two approved investment policies: 1) the Non-Pension Investment Policy, which is approved by the City Commission and governs the investment of all non-pension monies of the City, including the previously referenced cash and investments pool, and 2) the Pension Investment Policy, which is approved by the Sinking Fund Commission and governs the investment of assets of the City’s Pension Funds. The Non-Pension Investment Policy provides for a Core Portfolio, governing the investment of all monies held or controlled by the City, not otherwise classified as Specialized or Pension Fund monies. The Non-Pension Investment Policy specifies the investments that are authorized for purchase within the Core Portfolio. The Non-Pension Investment Policy further provides for the establishment of Specialized Portfolios, with the governing criteria unique to that portfolio, including authorized investments, to -- 67 of 220 -- 68 ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 City of Tallahassee nOTES TO FInAnCIAL STATEmEnTS note IV - Detailed notes - All Funds (Continued) A. Cash, Cash equivalents, and Investments (Continued) be approved on a case-by-case basis by the Investment Advisory Committee. In addition to authorizing investment instruments, the City’s investment policies also identify various portfolio parameters addressing issuer diversification, term to maturity and liquidity, and the requirement of “purchase versus delivery” perfection for securities held by a third party on behalf of and in the name of the City. 1. Cash and Cash equivalents The following table presents the City’s primary government cash and cash equivalent balances at September 30, 2024 carried at fair value by level within the valuation hierarchy, financial assets carried at net asset value or amortized cost, and other cash and cash equivalent balances. The amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the statements of net position (in thousands). Cash equivalents type by fair value level Total Quoted Prices in Active Markets for Identical Assets Level 1 Significant other observable Inputs Level 2 Significant Unobservable Inputs Level 3 Debt securities $ 600,103 $ 30,509 $ 564,271 $ 5,323 Total cash equivalents at fair value 600,103 30,509 564,271 5,323 Cash equivalents recorded at net asset value Other Cash and Cash Equivalents 74,045 FL League of Cities 1-3 Year Pool 5,595 Total cash and cash equivalents $ 679,743 At year-end, the book balance of the City’s operating cash deposits was $14,691,000 and the bank balance was $23,032,000, which is included in total other cash and cash equivalent balances. The difference between the book balance and bank balance is due to outstanding checks and deposits. Seven City funds had deficit cash balances at year end totaling $26,355,000 which is reported in interfund payables at September 30, 2024. The City’s Core Portfolio includes investments administered internally by the City, funds invested in external investment pools, and funds invested in externally managed portfolios. The external managers for these portfolios include Wells Fargo, JP Morgan Chase, Galliard Capital Management, Income Research and Management and Wellington Management Company. The external investment pools are the Florida Municipal Investment Trust Portfolio 1-3 Year High Quality Bond Fund (the “Florida League of Cities 1-3 Year Pool”), administered by the Florida League of Cities, and Florida Cooperative Liquid Assets Securities System (“FLCLASS”), an intergovernmental investment pool administered by Public Trust Advisors, LLC. FLCLASS is an authorized local government investment pool under Section 218.415(16)(a), Florida Statutes, by and for participating Florida public agencies. A copy of the Florida Municipal Investment Trust audited financial statements may be obtained from the Florida Municipal Investment Trust, 301 South Bronough Street, Suite 300, Tallahassee, FL 32301. A copy of the FLCLASS audited financial statements may be obtained at their offices, 201 E. Pine Street, Suite 750, Orlando, FL 32801. The Florida League of Cities 1-3 Year Pool is measured at net asset value (NAV). As of September 30, 2024, the City owns $5,595,000 in shares of the Florida League of Cities 1-3 Year Pool, not the individual securities within the portfolio. The modified duration of the Florida League of Cities 1-3 Year Pool as of September 30, 2024, was 1.63 years. The Florida League of Cities 1-3 Year Bond Fund (Florida League of City’s Fund) allows the City to withdraw any or all of its assets on the 15th and last day of each month, provided the City gives the Florida League of City’s Fund advance notice of at least 10 business days of the withdrawal. The pool is rated AAAf/S1 by Fitch Ratings. The FLCLASS investment pool is measured at net asset value (NAV). As of September 30, 2024, the City owned $173,003,000 in shares of FLCLASS, not the individual securities within the portfolio. The Pool is a 2a-7 like pool which maintains a stable net asset value of $1, is rated AAAm by Standard & Poor’s, and has a weighted average days to maturity of 30 days. The FLCLASS pool allows the City to withdraw any or all its assets on any business day that the pool is open. Credit Risk: The structure of the City’s non-pension portfolio is designed to minimize credit risk. To limit the City’s risk against possible credit losses, a maximum of 5% of the total portfolio may not be held at any one time in all securities of any corporate entity, inclusive of commercial paper, medium term notes, or corporate notes and bonds. -- 68 of 220 -- ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 69 City of Tallahassee nOTES TO FInAnCIAL STATEmEnTS note IV - Detailed notes - All Funds (Continued) A. Cash, Cash equivalents, and Investments (Continued) No corporate entity represented more than 5% of the portfolio at September 30, 2024. The majority of the securities held are of the highest available credit quality ratings. The non-pension portfolio’s credit quality is measured using the Standard & Poor’s rating scale. As of September 30, 2024, the City had the following non-pension investments subject to credit risk in the internal and externally managed portions of the portfolio, in addition to the previously discussed shares in the Florida League of Cities 1-3 Year Pool and FLCLASS: Quality Breakdown Portfolio Percentage U.S. Treasury 21.36% U.S. Agency 13.95 AAA 29.84 AA 7.26 A 20.07 BBB 4.35 Other 3.17 Total 100.00% Interest Rate Risk: In accordance with the City’s Non-Pension Investment Policy, the City has established maturity limitations for each authorized investment category. The maximum duration of the various investments within the internally managed portion of the non-pension portfolio ranges from 60 days to 3.5 years. The maximum duration for externally managed investments ranges from 3.0 years to 6.0 years. The option adjusted duration of the non-pension portfolio as of September 30, 2024 was 1.08 years. As of September 30, 2024, the Core Portfolio had the following investments on a time-segmented basis (in thousands): Investment Type Fair Value Less than 1 Year 1-5 Years 6-10 Years 10+ Years U.S. Treasury $ 105,316 $ 1,941 $ 30,961 $ 8,407 $ 64,007 U.S. Agency $ 204,137 12,708 42,645 7,060 141,724 Asset-backed $ 29,241 2,388 12,442 2,741 11,670 Corporate Bonds $ 187,559 20,125 52,187 11,616 103,631 Municipal $ 28,827 1,441 4,631 295 22,460 Other $ 45,023 6,077 2,190 - 36,756 Subtotal $ 600,103 $ 44,680 $ 145,056 $ 30,119 $ 380,248 Commingled 79,640 Total $ 679,743 -- 69 of 220 -- 70 ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 City of Tallahassee nOTES TO FInAnCIAL STATEmEnTS note IV - Detailed notes - All Funds (Continued) A. Cash, Cash equivalents, and Investments (Continued) 2. Investments The following table presents investments held in the City’s fiduciary funds at September 30, 2024 carried at fair value by level within the valuation hierarchy and investments carried at net asset value or amortized cost (in thousands). Investment type by fair value level Total Quoted Prices in Active Markets for Identical Assets Level 1 Significant other observable Inputs Level 2 Significant Unobservable Inputs Level 3 Debt securities $ 271,532 $ 8,627 $ 262,655 $ 250 Equity securities 1,095,922 1,095,922 - - Total investments at fair value 1,367,454 $ 1,104,549 $ 262,655 $ 250 Investments measured at net asset value Mutual index funds 190,517 Debt securities 103,712 Alternative investments 282,997 Private equity funds 270,111 Timber 117,818 Private Credit Funds 153,174 Total investments measured at net asset value 1,118,329 Total investments $ 2,485,783 The assets shown as Level 1 Inputs represent those investments for which the City’s custodian had directly observable, quoted prices (unadjusted) in active markets for identical assets or liabilities. The assets shown as Level 2 Inputs represent those investments for which the City’s custodian had inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. These inputs are derived from or corroborated by observable market data through correlation or by other means. The assets shown as Level 3 Inputs represent those investments for which the City’s custodian utilized unobservable inputs when relevant Level 1 and Level 2 inputs were unavailable. The level in which an asset is assigned is not indicative of its quality but an indication of the source of valuation. There were no changes in the valuation techniques used by the City’s custodian from the end of the prior fiscal year. The Mutual funds category is comprised of the invested assets of the defined contribution portion of the City’s pension plan, which are used to pay matching contributions to City retirees. As of September 30, 2024, these investments totaled $190,517,000. The Debt securities category is comprised of a core-plus commingled fixed income manager. The Pension Fund may withdraw from the core fixed-income accounts at any time with reasonable notice (five business days are recommended). The real estate investment consists of commingled funds and a number of limited partnerships. The City has invested in two commingled funds. The commingled funds permit withdrawals once per quarter by providing advance notice of 45 days prior to the end of the quarter; all withdrawals are subject to available cash, as determined by the fund’s Trustee. Available cash is defined as excess cash after provision for outstanding future capital commitments and other operating reserves. If withdrawal requests exceed available cash, distributions are made on a pro rata basis. Withdrawal requests are typically paid on the final day of the quarter. As of September 30, 2024, the commingled funds had a NAV of approximately $89.8 million. Real estate limited partnerships cannot be redeemed at the option of the Pension Fund; the Pension Fund will receive distributions over the life of each limited partnership. Each partnership is expected to distribute the principal and earnings to the Pension Fund over a period of approximately 12 years from the establishment date of the partnership. The Pension Fund has investment commitments in 18 active limited partnerships, all of which have varying start dates and commitment amounts. As of September 30, 2024, the Pension Fund had approximately $96.8 million in -- 70 of 220 -- ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 71 City of Tallahassee nOTES TO FInAnCIAL STATEmEnTS note IV - Detailed notes - All Funds (Continued) A. Cash, Cash equivalents, and Investments (Continued) remaining commitments to these various real estate partnerships, with an expectation that the total contributions to each partnership will ultimately reach about 95% of the total commitment amount for each individual partnership. Private equity funds consist of several limited partnerships as of September 30, 2024. The limited partnerships cannot be redeemed at the option of the Pension Fund; the Pension Fund will receive distributions over the life of each limited partnership. Each partnership is expected to distribute the principal and earnings to the pension fund over a period of approximately 12 years from the establishment date of the partnership. The Pension Fund has investment commitments in eleven active limited partnerships, all of which have varying start dates and commitment amounts. As of September 30, 2024, the Pension Fund had approximately $32 million in remaining commitments to these various partnerships, with an expectation that the total contributions to each partnership will ultimately reach about 85% of the total commitment amount for each individual partnership. Timber funds consist of several limited partnerships. The limited partnerships cannot be redeemed at the option of the Pension Fund; the Pension Fund will receive distributions over the life of each limited partnership. Each partnership is expected to distribute the principal and earnings to the Pension Fund over a period of approximately 12 years from the establishment date of the partnership. The Pension Fund has investment commitments in five active limited partnerships, all of which have varying start dates and commitment amounts. As of September 30, 2024, the Pension Fund had approximately $0 million in remaining commitments to these various timber partnerships. Private credit funds consist of several limited partnerships. The limited partnerships cannot be redeemed at the option of the Pension Fund; the Pension Fund will receive distributions over the life of each limited partnership. Each partnership is expected to distribute the principal and earnings to the Pension Fund over a period of approximately six to ten years from the establishment date of the partnership. The Pension Fund has investment commitments in ten active limited partnerships, all of which have varying start dates and commitment amounts. As of September 30, 2024, the Pension Fund had approximately $62 million in remaining commitments to these various private credit partnerships, with an expectation that the total contributions to each partnership will ultimately reach about 85% of the total commitment amount. Credit Risk: The City’s Investment Policy for the Pension Plan requires its fixed-income managers to manage a high-grade portfolio of bonds. The individual money managers evaluate risk in their selection of bond securities to hold in their portfolios. The Pension Plan measures credit quality using the Standard & Poor’s rating scale. As of September 30, 2024, the City had the following pension investments subject to credit risk: Quality Breakdown Portfolio Percentage US Treasury 23.29% US Agency 6.80 AAA 15.26 AA 8.89 A 8.20 BBB 9.40 BB 0.09 Commingled 28.07 Total 100.00% Foreign Currency Risk: The City’s Investment Policy for the Pension Plan does not explicitly address foreign currency risk. The investment policy specifies the market sectors of the investments and the benchmark for each sector. Individual money managers are hired to manage each sector and are evaluated on their performance against that benchmark. The individual money managers evaluate risk in their selection of securities to hold in their portfolios. -- 71 of 220 -- 72 ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 City of Tallahassee nOTES TO FInAnCIAL STATEmEnTS note IV - Detailed notes - All Funds (Continued) A. Cash, Cash equivalents, and Investments (Continued) The following table below shows the Foreign Currency Risk for the City’s Pension Plan with the amount (in thousands) and the percentage each currency represents for the Pension Plan’s cash, cash equivalents and investments: exposure Percentage United States Dollar $ 2,911,143 93.93% Euro 65,895 2.13 British Pound Sterling 34,941 1.13 Japanese Yen 31,402 1.01 Swiss Franc 21,045 0.68 Danish Krone 10,251 0.33 Australian Dollar 8,872 0.29 Swedish Krona 3,662 0.12 Canadian Dollar 3,320 0.11 South Korean Won 3,216 0.10 Singapore Dollar 1,403 0.05 Hong Kong Dollar 1,314 0.04 Mexican Pseo 775 0.03 New Israeli Shekel 712 0.02 Norwegian Krone 595 0.02 Taiwan Dollar 292 0.01 Total $ 3,098,838 100.00% Interest Rate Risk: The City of Tallahassee’s Investment Policy for the Pension Plan does not explicitly address interest rate risk. The investment policy specifies the market sectors of the investments and the benchmark for each sector. Individual money managers are hired to manage each sector and are evaluated on their performance against that benchmark. The individual money managers evaluate risk in their selection of securities to hold in their portfolios. The City of Tallahassee held the following debt securities for its Pension Fund on a time-segmented basis as of September 30, 2024 (in thousands): Investment Type Fair Value Less than 1 Year 1-5 Years 6-10 Years 10+ Years U.S. Treasury $ 97,836 $ - $ 31,144 $ 57,835 $ 8,857 U.S. Agency 45,520 12,911 244 84 32,281 Asset Backed 17,295 - 4,345 5,594 7,356 Corporate Bonds 60,501 1,760 22,526 17,087 19,128 Municipal 52,330 - 5,367 5,050 41,913 Other (1,930) (1,930) - - - Subtotal 271,552 $ 12,741 $ 63,626 $ 85,650 $ 109,535 Commingled 106,778 Total $ 378,330 B. Securities Lending Transactions In accordance with Section 51 of the City Charter, the City Treasurer-Clerk or his designee may authorize investment transactions that he considers prudent. Accordingly, the City participates in securities lending transactions via a Securities Lending Agreement with The Northern Trust Company (“Northern”) that authorizes the banking institution to lend the City’s securities to approved broker-dealers and banks in order to generate additional income. Gross income from securities lending transactions and the fees paid to Northern are reported in the City’s statements. Assets and liabilities include the value of the collateral held. -- 72 of 220 -- ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 73 City of Tallahassee nOTES TO FInAnCIAL STATEmEnTS note IV - Detailed notes - All Funds (Continued) B. Securities Lending Transactions (Continued) During the fiscal year ended September 30, 2024, Northern loaned, at the direction of the City’s Treasurer-Clerk, securities and received cash, securities issued or guaranteed by the United States government, and irrevocable bank letters of credit as collateral. Northern does not have the ability to pledge or sell collateral securities delivered absent a borrower default. Borrowers were required to deliver cash collateral for each loan equal to at least 102% of the initial fair value of the loaned securities or if the borrowed securities and the collateral were denominated in different currencies, equal to 105% of the fair value of the securities. There are no restrictions on the amount of securities that may be loaned. The Agreement requires Northern to indemnify the City for losses attributable to violations by Northern of the Standard of Care set out in the Agreement. There were no such violations during the fiscal year ended September 30, 2024. Moreover, there were no losses during the fiscal year ended September 30, 2024 resulting from a default of any borrower. During the fiscal year ended September 30, 2024, the City and each borrower maintained the right to terminate all securities lending transactions on demand. For the Pension Fund, the cash collateral received on each loan of securities together with the cash collateral of other qualified plan lenders were invested in a collective investment pool with Northern. The cash collateral for the non-pension funds lending activity was invested in a liquid assets portfolio institutional account. Because the loans are terminable at will, their duration did not generally match the duration of the investments made with the cash collateral. For the Pension Fund, the average term of the loan was approximately 120 days and the average duration of the investment pool was 21 days. For the non-pension funds, the average term of the loan was 19 days and the average duration of the investment pool was 21 days. On September 30, 2024, the City had no credit risk exposure to borrowers. On September 30, 2024, for the City’s Pension Fund, the collateral held and the fair value of securities on loan were $65,504,000 and $63,826,000, respectively; for the City’s non-pension funds, the collateral held and the fair value of securities on loan were $8,141,000 and $7,940,000 respectively. A summary of the fair value of the securities on loan as of September 30, 2024 follows (in thousands): Pension Fund non-Pension Fund Corporate Bonds $ 9,417 $ 7,940 Common Stock 36,937 - U.S. Government Treasury Notes 17,472 - $ 63,826 $ 7,940 C. Receivables 1. Property Taxes Under Florida law, the assessment of all properties and the collection of all county, municipal and school board property taxes are consolidated in the offices of the Leon County Property Appraiser and the Leon County Tax Collector. The laws of the State regulating tax assessment are also designed to ensure consistent property taxes at a rate of up to 10 mills. The millage rate assessed by the City for the fiscal year ended September 30, 2024 was 4.45. All property is assessed by the county according to its fair market value on January 1 of each year. Each assessment roll is submitted to the Executive Director of the State Department of Revenue for review to determine if the rolls meet all of the appropriate requirements of State Statutes. The current year taxes for the fiscal year, beginning October 1, are billed in the month of November and are due no later than March 31. On April 1, all unpaid amounts become delinquent and are subject to interest and penalties. Discounts are allowed for early payment at the rate of 4% in the month of November, 3% in the month of December, 2% in the month of January and 1% in the month of February. The taxes paid in March are without discount. Delinquent taxes on real property bear interest of 18% per year. On or prior to June 1 following the tax year, certificates are sold for all delinquent taxes on real property. After sale, tax certificates bear interest of 18% per year or at any lower rate bid by the buyer. Application for a tax deed on any unredeemed tax certificates may be made by the certificate holder after a period of two years. Delinquent taxes on personal property bear interest of 18% per year until the tax is satisfied either by seizure and sale of the property or by the seven year statute of limitations. -- 73 of 220 -- 74 ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 City of Tallahassee nOTES TO FInAnCIAL STATEmEnTS note IV - Detailed notes - All Funds (Continued) C. Receivables (Continued) The City Tax Calendar is as follows: Valuation Date: January 1; Levy Date: November 1; Due Date: March 31, Succeeding Year; and Lien Date: April 1, Succeeding Year. 2. Leases The City leases land, offices and buildings, equipment, and infrastructure capital assets including Airport infrastructure and land (non-regulated leases), to various third-party tenants doing business in the City of Tallahassee. The leases have terms including options to extend between one and eleven years, with payments required monthly, semiannually, or annually. At the commencement of the leases, the lease receivables are measured at the present value of payments expected to be received during the lease term. In fiscal year 2024, the city recognized $1,404,218 of lease revenue and $48,938 of interest revenue related to these leases. As of September 30, 2024, the City’s lease receivables were valued at $3,126,546. The principal and interest requirements to maturity for the lease receivables as of September 30, 2024, are as follows (in thousands): Governmental Activities Year ending September 30 Principal Interest 2025 $ 610 $ 30 2026 308 25 2027 232 21 2028 219 18 2029 213 14 2030-2034 674 38 Total $ 2,256 $ 146 Business-Type Activities Year ending September 30 Water Airport Star Metro Principal Interest Principal Interest Principal Interest 2025 $ 175 $ 6 $ 83 $ 6 $ 56 $ 3 2026 141 4 72 4 57 2 2027 150 2 21 2 58 1 2028 - - - - 58 - Total $ 466 $ 12 $ 176 $ 12 $ 229 $ 6 3. Regulated Leases The City has leasing agreements for aeronautical use of the Airport’s airfield, terminal, and other facilities as defined by the Federal Aviation Administration, which qualify to be treated as regulated in accordance with the requirements of GASB 87. The City leases land and buildings to third parties under these agreements. -- 74 of 220 -- ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 75 City of Tallahassee nOTES TO FInAnCIAL STATEmEnTS note IV - Detailed notes - All Funds (Continued) C. Receivables (Continued) As of September 30, 2024, the remaining amount of expected future minimum payments under these agreements is as follows (in thousands): Year ending September 30, 2025 $ 8,016 2026 1,423 2027 1,440 2028 1,211 2029 1,101 2030-2034 5,768 2035-2039 4,764 2040-2044 2,580 2045-2049 1,877 2050-2054 1,335 $ 29,515 Effective October 2022, the City entered into three-year lease and use agreements with its major airline tenants, (the Signatory Airline Agreements). The current agreements expire on September 30, 2025. The agreement requires that rates for rentals, fees and charges be reviewed annually and adjusted so that the total airline revenues equal the Signatory Airline’s share of the applicable costs. Year-end settlement provisions under the agreement provide for a recalculation of rates and charges. Upon determination of any difference between the actual rentals, fees and charges paid by Signatory Airlines, the City shall return to the airlines the amount of such difference in the event of an overpayment, and in the event of an underpayment, the City will invoice the airlines for the amount of such underpayment. Final settlements are made each year after the audit of the City’s Annual Comprehensive Financial Report. Other airlines operating at the Airport are billed at rates established by the non-signatory agreement. The Signatory Airlines lease certain premises in the passenger terminal building. Under this agreement, all space leased is preferential. American Airlines preferentially leases terminal space, facilities on the ramp levels and gates on Concourse A. Delta Air Lines preferentially leases terminal space, facilities on the ramp levels and gates on Concourse B. No other airlines have exclusive or preferential use of more than five (5) percent of terminal space or other areas of the Airport as of September 30, 2024. Exclusive and preferential use of space are summarized as follows: Tallahassee International Airport Leased Terminal Space American Delta JetBlue Silver Vacant Joint Use other Space Total Airline Leased Space (sq.ft.) 5,653 6,860 1,483 2,453 - 28,222 - 44,671 Airline Preferential 5,653 6,860 1,483 2,453 18,475 - - 34,924 Joint Use - - - - - 28,222 - 28,222 Concessions - - - - - - 14,641 14,641 Other Rentable - - - - - - 13,353 13,353 Total Leasable Space 5,653 6,860 1,483 2,453 18,475 28,222 27,994 91,140 Preferential Passenger Boarding Bridge Assignments 2 2 - - 4 - - 8 -- 75 of 220 -- 76 ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 City of Tallahassee nOTES TO FInAnCIAL STATEmEnTS note IV - Detailed notes - All Funds (Continued) D. Capital Assets Capital Asset activity for the fiscal year ended September 30, 2024 was as follows (in thousands): Primary Government Beginning Balance Increases Decreases Ending Balance Governmental Activities Non-Depreciable Assets: Land $ 371,259 $ 271 $ (264) $ 371,266 Construction-in-Progress 31,412 34,904 (11,072) 55,244 Total Non-Depreciable Assets $ 402,671 $ 35,175 $ (11,336) $ 426,510 Depreciable and Amortizable Assets: Buildings $ 130,581 $ 435 $ - $ 131,016 Equipment 106,628 3,620 (51,627) 58,621 Improvements other than buildings 15,161 - - 15,161 Infrastructure 1,002,079 5,676 - 1,007,755 Intangibles 1,933 - - 1,933 Intangible Right-to-Use Property 1,940 354 - 2,294 Intangible Right-to-Use Equipment and Fixtures 7,014 1,794 (960) 7,848 SBITAs 7,832 1,221 (286) 8,767 Total Depreciable and Amortizable Assets 1,273,168 13,100 (52,873) 1,233,395 Less accumulated depreciation and accumulated amortization for: Buildings (86,997) (2,713) - (89,710) Equipment (46,794) (6,490) 12,100 (41,184) Improvements other than buildings (9,675) (301) - (9,976) Infrastructure (736,459) (33,884) - (770,343) Intangibles (215) (179) - (394) Intangible Right-to-Use Property (822) (303) - (1,125) Intangible Right-to-Use Equipment and Fixtures (4,088) (2,331) 960 (5,459) SBITAs (2,323) (2,876) 286 (4,913) Total Accumulated Depreciation and Amortization (887,373) (49,077) 13,346 (923,104) Total Depreciable and Amortizable Assets, net $ 385,795 $ (35,977) $ (39,527) $ 310,291 Business-Type Activities Non-Depreciable Assets: Land $ 156,138 $ 920 $ (56) $ 157,002 Construction-in-Progress 125,979 110,876 (111,324) 125,531 Total Non-Depreciable Assets $ 282,117 $ 111,796 $ (111,380) $ 282,533 Depreciable and Amortizable Assets: Buildings $ 249,211 $ 7,439 $ (10,899) $ 245,751 Equipment 1,084,281 89,939 (35,908) 1,138,312 Improvements other than buildings 54,136 247 (892) 53,491 Infrastructure 1,549,959 85,044 (4,790) 1,630,213 Intangibles 310,479 - - 310,479 Intangible Right-to-Use Equipment and Fixtures 3,802 134 - 3,936 SBITAs 1,103 1,792 - 2,895 Total Depreciable and Amortizable Assets 3,252,971 184,595 (52,489) 3,385,077 Less accumulated depreciation and accumulated amortization for: Buildings (124,018) (6,463) 4,118 (126,363) Equipment (767,453) (49,146) 9,938 (806,661) Improvements other than buildings (35,188) (1,836) 780 (36,244) Infrastructure (725,002) (36,976) 4,180 (757,798) Intangibles (155,489) (11,775) - (167,264) Intangible Right-to-Use Equipment and Fixtures (883) (442) - (1,325) SBITAs (610) (766) - (1,376) Total Accumulated Depreciation and Amortization (1,808,643) (107,404) 19,016 (1,897,031) Total Depreciable and Amortizable Assets, net $ 1,444,328 $ 77,191 $ (33,473) $ 1,488,046 -- 76 of 220 -- ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 77 City of Tallahassee nOTES TO FInAnCIAL STATEmEnTS note IV - Detailed notes - All Funds (Continued) D. Capital Assets (Continued) Depreciation and amortization expense was charged to functions/programs of the primary government as follows (in thousands): Governmental Activities: General Government $ 478 Public Safety 212 Transportation 928 Human Services 115 Economic Development 16 Physical Environment 15 Culture and Recreation 990 General Infrastructure 35,835 Capital Assets held by the governmental internal service funds are charged to the various functions based on their usage of assets 10,488 Total depreciation and amortization expense governmental activities $ 49,077 Business-Type Activities: Electric $ 54,043 Gas 2,457 Sewer 20,806 Water 7,087 Airport 7,271 StarMetro 3,909 Solid Waste 608 Golf 63 Stormwater Management 2,469 Fire Services 1,373 Capital Assets held by the business-type internal service funds are charged to the various functions based on their usage of assets 7,318 Total depreciation and amortization expense- business-type activities $ 107,404 -- 77 of 220 -- 78 ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 City of Tallahassee nOTES TO FInAnCIAL STATEmEnTS note IV - Detailed notes - All Funds (Continued) e. Interfund Receivables, Payables, Intergovernmental Charges, and Transfers 1. Interfund Receivables/Payables At September 30, 2024, Interfund Receivables and Payables are as follows (in thousands): Fund Due From Due To Advance To Advance From General $ - $ 53 $ - $ 1,032 Electric 30,000 - 3,000 3,978 Sewer - 140 9,504 - Airport - 3 - 100 Stormwater 140 - - 4,074 Nonmajor governmental 3,005 3,005 9,995 3,006 Nonmajor business-type - 19,915 - 11,746 Internal service funds 23,413 33,442 1,599 162 $ 56,558 $ 56,558 $ 24,098 $ 24,098 $56,558,000 of the interfund receivables and payables balances represent amounts remaining from loans to fund operations. $24,098,000 of these balances represent amounts loaned for capital funding. 2. Intergovernmental Charges Certain functions of the City of a general and administrative nature are accounted for in internal service funds. The costs accumulated in these funds are allocated to the various funds benefited by the services via charges, which are recorded as charges for services in the internal service funds and expenses or expenditures in the benefited funds. Such costs allocated to the funds for the year ended September 30, 2024 are as follows (in thousands): General $ 26,857 Electric 31,549 Gas 4,309 Sewer 12,602 Water 11,809 Airport 2,417 Stormwater management 7,520 Nonmajor business type 28,074 Nonmajor governmental type 1,247 Fiduciary type 1,194 Internal service type 11,335 Total $ 138,913 -- 78 of 220 -- ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 79 City of Tallahassee nOTES TO FInAnCIAL STATEmEnTS note IV - Detailed notes - All Funds (Continued) e. Interfund Receivables, Payables, Intergovernmental Charges, and Transfers (Continued) 3. Interfund Transfers Interfund transfers are made for the funding of capital projects, debt service, for subsidies of various city operations, and for reallocation of special revenues. The following schedule summarizes city transfer activity for the fiscal year ended September 30, 2024 (in thousands): Transfers In Transfers Out General Electric Gas Sewer Water Airport Stormwater Nonmajor Govt. Nonmajor Business-Type Internal Service Funds Total General $ - $ 200 $ - $ 12,227 $ 10,631 $ 2,028 $ 25,086 Electric 36,875 - - 9 236 - - 36 - 16,795 53,951 Gas 3,587 - - 279 156 - - 1 - 718 4,741 Sewer 5,992 - 26 - 31 - - - - 19,431 25,480 Water 4,351 - - 20 - - - 5 - 13,270 17,646 Airport 178 - - - - - - - - 1,277 1,455 Stormwater 544 - - 4,073 - - - 11 - 1,619 6,247 Nonmajor governmental 591 - - - - - - 1,284 3,077 4,952 Nonmajor business-type 2,601 - - 5,429 - - - 35 - 4,825 12,890 Internal Service 1,011 5,225 7,823 11,507 1,145 4,245 137 6,212 661 37,966 Total $ 55,730 $ 5,225 $ 26 $ 17,633 $ 12,130 $ 1,145 $ 4,245 $ 13,736 $ 19,920 $ 60,624 $ 190,414 F. Lease Payables The City has entered into agreements to lease certain land, office and buildings, machinery, equipment and vehicles. These lease agreements qualify as other than short-term leases under GASB 87 and therefore, have been recorded at the present value of the future minimum lease payments as of their inception. The terms and conditions for these leases vary and may contain renewal options, the options are not considered in determining the lease term and associated potential option payments are excluded from the present value calculation of the right to use lease asset and the lease liability determination. The City’s leases generally do not include termination options for either party to the lease or restrictive financial or other covenants. As a result of the leases, the City has recorded the right to use assets with a total net book value of $2,669,014 for governmental activities and $4,738,832 for business-type activities. Payments due under the lease contracts include fixed, periodic payments over the lease terms plus, for many of the City’s leases, variable, and non-lease component payments. For the City’s leases, variable lease payments that depend on future performance or usage of the underlying asset and not lease components are excluded from the measurement of the lease liability and recognized as outflows of resources. In fiscal year 2024, the City recognized $2,397,374 in variable lease payments related to these leases. As of September 30, 2024, the City’s lease payables were valued at $6,631,000. -- 79 of 220 -- 80 ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 City of Tallahassee nOTES TO FInAnCIAL STATEmEnTS note IV - Detailed notes - All Funds (Continued) F. Lease Payables (Continued) The future minimum lease obligations and the net present value of these minimum lease payments as of September 30, 2024, were as follows (in thousands): Governmental Activities Year ending September 30, Principal Interest 2025 $ 1,505 $ 128 2026 657 80 2027 736 50 2028 70 19 2029 72 16 2030-2096 923 593 Total $ 3,963 $ 886 Business-Type Activities Year ending September 30, Airport Star Metro Utility Services Principal Interest Principal Interest Principal Interest 2025 $ 5 $ - $ 377 $ 30 $ 56 $ 5 2026 3 - 382 25 30 3 2027 - - 387 20 26 2 2028 - - 393 15 27 1 2029 - - 398 10 12 - 2030-2096 - - 572 6 - - Total $ 8 $ - $ 2,509 $ 106 $ 151 $ 11 -- 80 of 220 -- ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 81 City of Tallahassee nOTES TO FInAnCIAL STATEmEnTS note IV - Detailed notes - All Funds (Continued) G. Subscription-Based Information Technology Arrangements (SBITAs) The City has entered into subscription-based information technology arrangements (SBITAs). The SBITA agreements qualify as other than short-term under GASB 96 and therefore, have been recorded at the present value of the future subscription payments as of the date of their inception. Accordingly, the City’s estimated incremental borrowing rates of 3.93 percent to 4.27 percent were used to discount the SBITA payments. As a result of the subscriptions, the City has recorded the right to use assets with a total net book value of $4,674,915. The SBITA liability balance was $4,500,633 on September 30, 2024. The future minimum SBITA payments as of September 30, 2024, were as follows (in thousands): Governmental Activities Year ending September 30, Principal Interest 2025 $ 1,436 $ 121 2026 1,032 62 2027 487 20 2028 - - Total $ 2,955 $ 203 Business-Type Activities Year ending September 30, Garage Star Metro Purchasing Principal Interest Principal Interest Principal Interest 2025 $ 429 $ 59 $ 64 $ 5 $ 32 $ 1 2026 459 41 69 3 - - 2027 491 21 - - - - Total $ 1,379 $ 121 $ 133 $ 8 $ 32 $ 1 -- 81 of 220 -- 82 ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 City of Tallahassee nOTES TO FInAnCIAL STATEmEnTS note IV - Detailed notes - All Funds (Continued) H. Long-Term Debt 1. Summary of Changes in Long-Term Debt The following is a summary of the changes in Long-Term Debt for the year ended September 30, 2024 (in thousands): Beginning Balance Additions Reductions Ending Balance Current Noncurrent Governmental Activities: General Revenue Bonds $ 65,990 $ 65,110 $ 9,030 $ 122,070 $ 5,410 $ 116,660 Unamortized Premiums 3,127 4,970 146 7,951 - 7,951 Public Improvement Revenue Note 2020 7,310 - - 7,310 7,310 - Public Improvement Revenue Note 2024 - 25,000 - 25,000 950 24,050 Redevelopment Revenue Note 2,860 - 560 2,300 565 1,735 Bonds and Loans Payable 79,287 95,080 9,736 164,631 14,235 150,396 Compensated Absences 11,964 7,812 7,806 11,970 7,813 4,157 Net Pension Liability 154,509 66,857 30,208 191,158 - 191,158 Net OPEB Liability 37,161 9,664 9,624 37,202 - 37,202 Lease Payable 3,689 1,458 1,184 3,963 1,298 2,665 SBITA Liability 5,284 2,757 5,086 2,955 1,257 1,698 Total Governmental-Type Debt 291,894 183,628 63,644 411,879 24,603 387,276 Business-Type Activities: Energy System 2010B 122,280 - 122,280 - - - Energy System Refunding 2017 125,780 - 2,010 123,770 4,900 118,870 Energy System 2018 97,910 - 97,910 - - - Energy System Refunding 2020 53,890 - 12,100 41,790 10,190 31,600 Energy System Refunding 2023 59,790 - 6,225 53,565 6,400 47,165 Energy System Refunding 2024 - 199,190 - 199,190 460 198,730 Consolidated Utility System 2010A 117,015 - 117,015 - - - Consolidated Utility System Refunding 2017 90,405 - 90,405 - - - Consolidated Utility System 2018 37,800 - 1,750 36,050 1,840 34,210 Consolidated Utility System Refunding 2020 8,035 - 2,550 5,485 2,675 2,810 Consolidated Utility System Refunding 2023 34,720 - 2,955 31,765 3,040 28,725 Consolidated Utility System 2024 - 44,660 - 44,660 1,760 42,900 Consolidated Utility System Refunding 2024A - 180,995 - 180,995 4,300 176,695 2019 Transportation Improvement Bond 4,642 - 888 3,754 907 2,847 Unamortized Premiums/Discounts 67,909 57,888 31,309 94,488 - 94,488 AMI Loan 3,234 - 3,234 - - - Fire Improvement Revenue Note - 27,000 - 27,000 185 26,815 Bonds and Loans Payable 823,410 509,733 490,631 842,512 36,657 805,855 Compensated Absences 15,897 10,830 10,110 16,617 10,831 5,786 Net Pension Liability 30,224 21,950 11,947 40,227 - 40,227 Net OPEB Liability 25,105 8,384 8,119 25,370 - 25,370 Lease Payables 2,953 133 418 2,668 438 2,230 SBITA Liability 530 1,792 778 1,544 525 1,019 Total Business-Type Debt 898,118 552,822 522,003 928,938 48,451 880,487 Total Long-Term Debt $ 1,190,012 $ 736,450 $ 585,647 $ 1,340,817 $ 73,054 $ 1,267,763 For governmental activities, claims, judgments, pension obligations, OPEB obligations and compensated absences have been primarily liquidated by the General Fund. -- 82 of 220 -- ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 83 City of Tallahassee nOTES TO FInAnCIAL STATEmEnTS note IV - Detailed notes - All Funds (Continued) H. Long-Term Debt (Continued) 2. Summary of Individual Bond Issues Summarized below are the City’s individual bond issues outstanding at September 30, 2024 (in thousands): General Revenue Bonds: $26,975,000 Capital Improvement Refunding Revenue Bond – Series 2009, due in annual installments ranging from $550,000 to $1,240,000 ending on April 1, 2031, at a 3.710% interest rate. The Bond is payable from and secured by a junior lien and pledge of the Local Government Half-cent Sales Tax, Guaranteed Entitlement Revenues, and the Communications Service Tax. $ 5,910 $27,320,000 Capital Bonds – Series 2018, due in annual installments ranging from $575,000 to $2,105,000 ending on October 1, 2038, with interest rates at 1.75% to 5.0% depending on maturity date. Bonds are payable from and secured by a first lien and pledge of the Local Government Half-cent Sales Tax, Guaranteed Entitlement Revenues, Communications Services Tax, Public Service Tax Revenues and earnings on the investment of all funds and accounts created by the Bond Resolution, except the Rebate Fund and Unrestricted Revenue Account. 21,875 $6,035,000 Capital Bonds - Series 2021, due in annual installments ranging from $665,000 to $920,000 ending on October 1, 2028, at a 1.24% interest rate. Bonds are payable from and secured by a first lien and pledge of the Guaranteed Entitlement Revenues, the Local Government Half-cent Sales Tax, the Local Communications Services Tax, and the Public Service Tax Revenues. 3,615 $38,000,000 Capital Bonds - Series 2022, due in annual installments ranging from $2,180,000 to $5,980,000 ending on October 1, 2034 at a 3.480% interest rate. Bonds are payable from and secured by a first lien and pledge of the Local Government Half-Cent Sales Tax, Guaranteed Entitlement Revenues, Communications Service Tax and Public Service Tax Revenues. 25,560 $65,110,000 Capital Bonds - Series 2024, due in annual installments ranging from $80,000 to $2,2,00,000 ending on October 1, 2054 at a 5.000% interest rate. Bonds are payable from and secured by a first lien and pledge of the Local Government Half-Cent Sales Tax, Guaranteed Entitlement Revenues and Communications Service Tax. 65,110 Total General Revenue Bonds $ 122,070 Proprietary Revenue Bonds: $147,295,000 Energy System Refunding Revenue Bonds - Series 2017, due in annual installments ranging from $2,010,000 to $15,000,000 ending on October 1, 2037, interest rates at 3.00% in 2018 and 5.00% for the remaining maturity dates. Bonds are payable and secured by a lien on and pledge of certain funds provided by the 1998 General Resolution, which includes the net revenues of the City’s Energy System. 123,770 $80,195,000 Energy System Refunding Revenue Bonds - Series 2020, due in annual installments ranging from $7,715,000 to $11,010,000 ending on October 1, 2028, at an interest rate of 5.00%. Bonds are payable and secured by a lien on and pledge of certain funds provided by the 1998 General Resolution, which includes the net revenues of the City’s Energy System. 41,790 $59,739,000 Energy System Refunding Revenue Bonds - Series 2023, due in annual installments ranging from $135,453 to $1,656,183 ending on October 1, 2032, at an interest rate of 2.77. Bonds are payable and secured by a lien on and pledge of certain funds provided by the 1998 General Resolution, which includes the net revenues of the City’s Energy System. 53,565 -- 83 of 220 -- 84 ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 City of Tallahassee nOTES TO FInAnCIAL STATEmEnTS note IV - Detailed notes - All Funds (Continued) H. Long-Term Debt (Continued) $199,190,000 Energy System Refunding Revenue Bonds - Series 2024, due in annual installments ranging from $460,000 to $21,130 ending on October 1, 2042, at an interest rate of 5.0%. Bonds are payable and secured by a lien on and pledge of certain funds provided by the 1998 General Resolution, which included the net revenues of the City’s Energy System. 199,190 $45,385,000 Consolidated Utility System Revenue Bonds - Series 2018, due in annual installments ranging from $1,370,000 to $3,470,000 ending on October 1, 2038, at an interest rate of 5.0% on each maturity date. Bonds are payable and secured by a lien on and pledge of certain funds provided by Resolution, net revenues of the City’s Utility System (consisting of the City’s water and sewer systems) and the gross revenues of the City’s Stormwater Drainage System. 36,050 $14,875,000 Consolidated Utility System Refunding Revenue Bonds - Series 2020, due in annual installments ranging from $2,095,000 to $2,810,000 ending on October 1, 2026, at an interest rate of 5.0% on each maturity date. Bonds are payable and secured by a lien on and pledge of certain funds provided by Resolution, net revenues of the City’s Utility System (consisting of the City’s water and sewer systems) and the gross revenues of the City’s Stormwater Drainage System. 5,485 $34,720,000 Consolidated Utility System Refunding Revenue Bonds - Series 2023, due in annual installments ranging from $2,015,000 to $3,700,000 ending on October 1, 2035, at an interest rate of 2.89% . Bonds are payable and secured by a lien on and pledge of certain funds provided by Resolution, net revenues of the City’s Utility System (consisting of the City’s water and sewer systems) and the gross revenues of the City’s Stormwater Drainage System. 31,765 $44,660,000 Consolidated Utility System Revenue - Series 2024, due in annual installments ranging from $815,000 to $3,305,000 ending October 1, 2048, at an interest rate of 5.0%. The bond is payable and secured by a lien on and pledge of certain funds provided by Resolution, net revenues of the City’s Utility System (consisting of the City’s Water and Sewer systems) and the gross revenues of the City’s Stormwater Drainage System. 44,660 $180,955 ,000 Consolidated Utility System Refunding Revenue Bonds - Series 2024A, due in annual installments ranging from $3,675,000 to $25,125,000 ending on October 1, 2040, at an interest rate of 5.0%. Bonds are payable and secured by a lien on and pledge of certain funds provided by Resolution, net revenues of the City’s Utility System (consisting of the City’s Water and Sewer systems) and the gross revenues of the City’s Stormwater Drainage System. 180,995 $7,994,660 Transportation Improvement Bond – Series 2019, due in annual installments ranging from $809,990 to $970,840 ending on May 1, 2028, at an interest rate of 2.29%. The Bond is payable from and secured by a covenant to budget and appropriate pledge of legally available non-ad valorem revenues from the General Fund. The Bond was issued to purchase 14 electric buses for the City’s mass transit bus system. 3,754 Total Proprietary Revenue Bonds $ 721,024 Total Bonds Payable $ 843,094 -- 84 of 220 -- ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 85 City of Tallahassee nOTES TO FInAnCIAL STATEmEnTS note IV - Detailed notes - All Funds (Continued) H. Long-Term Debt (Continued) 3. Private Placement Bonds/Direct Borrowings The Capital Improvement Refunding Revenue Bond, Series 2009, the Transportation Improvement Bond, Series 2019, the Public Improvement Revenue Note, Series 2020, the Capital Bonds, Series 2021, the Energy System Refunding Revenue bonds, Series 2023, the Consolidated Utility System Refunding Revenue Bonds, Series 2023, the Public Improvement Revenue Note, Series 2024, and the Fire Improvement Revenue Note, Series 2024 are all private placement bonds. Should there be an Event of Default of these bonds, the interest rate on the applicable bond would increase to the Default Rate. If these bonds default on the debt service payments, the applicable lender has the right to require the City to pay the entire outstanding obligation of these bonds. The borrowings identified below under Loans Payable are the direct borrowings of the City. For all of the private placement bonds and direct borrowings, should the borrowings no longer be tax-exempt, the interest rate on the outstanding amount will be increased. 4. Loans Payable Public Improvement Revenue note, Series 2020 On October 1, 2020, the City entered into a taxable loan in the amount of $7,310,000 with Key Bank. The loan bears interest at a rate of 1.43% with interest only payments due annually on October 1 from 2021 through 2025. The principal is due in a balloon payment on October 1, 2025. The Note is payable from and secured by a covenant to budget and appropriate pledge of legally available non-ad valorem revenues from the General Fund. The Note was issued to refinance the purchase of the Northwood Centre property on which the City will construct a new police headquarters and other amenities. The loan may be repaid in whole or in part at any time upon notice of 21 business days to Key Bank. The outstanding balance of this loan was $7,310,000 as of September 30, 2024. Community Redevelopment Revenue note, Series 2020 On December 16, 2020, the City executed Community Redevelopment Agency Redevelopment Revenue Note, Series 2020, which bears interest at a rate of 1.28% with annual installments ranging from $592,208 to $596,608 ending on January 15, 2028. The Note is payable from and secured by a covenant to budget and appropriate pledge of legally available non-ad valorem revenues. It was issued primarily to finance the cost of acquisition of a condominium unit consisting of two floors of structured parking with two hundred fifty-two public parking spaces. The outstanding balance of this loan was $2,300,000 as of September 30, 2024. Fire Improvement Revenue note (Fire Station Project), Series 2024 On June 26, 2024, the City executed Fire Improvement Revenue Note, Series 2024, which bears interest at a rate of 4.210% with annual installments ranging from $185,000 to $14,020,000 ending on April 1, 2044. The Note is payable from and secured by a covenant to budget and appropriate pledge of legally available non-ad valorem revenues. It was issued primarily to finance the cost of acquisition of a new fire station. The outstanding balance of this loan was $27,000,000 as of September 30, 2024. Public Improvement Revenue note (Senior Center Project), Series 2024 On April 10, 2024, the City executed Public Improvement Revenue Note (Senior Center Project), Series 2024, which bears interest at a rate of 4.045% with annual installments ranging from $950,000 to $2,320,000 ending on April 1, 2038. The Note is payable from and secured by a covenant to budget and appropriate pledge of legally available non-ad valorem revenues. It was issued primarily to finance the cost of acquisition of a new Senior Citizens Community Center. The outstanding balance of this loan was $25,000,000 as of September 30, 2024. -- 85 of 220 -- 86 ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 City of Tallahassee nOTES TO FInAnCIAL STATEmEnTS note IV - Detailed notes - All Funds (Continued) H. Long-Term Debt (Continued) 5. Schedule of Debt Service Requirements, for All outstanding Debt Including Principal and Interest (in Thousands) Governmental Activities Business - Type Activities Bonds Notes from Direct Borrowings and Direct Placements Bonds Notes from Direct Borrowings and Direct Placements Year ending September 30 Principal Interest Principal Interest Principal Interest Principal Interest Total Debt Service 2025 $ 1,195 $ 4,349 $ 13,040 $ 2,733 $ 29,165 $ 34,679 $ 7,492 $ 3,006 $ 95,659 2026 1,250 4,290 6,365 1,997 31,895 33,230 7,988 2,501 89,516 2027 1,315 4,227 6,565 1,796 33,415 31,710 8,219 2,277 89,524 2028 1,705 4,161 6,030 1,603 35,025 30,116 8,441 2,046 89,127 2029 1,720 4,076 4,695 1,416 39,945 28,445 7,690 1,809 89,796 2030-2034 11,955 18,906 24,245 4,439 217,500 112,360 22,900 5,979 418,284 2035-2039 13,610 15,594 8,755 903 231,105 58,993 3,860 4,233 337,053 2040-2044 54,235 20,981 - - 45,654 6,563 17,730 3,055 148,218 Totals $ 86,985 $ 76,584 $ 69,695 $ 14,887 $ 663,704 $ 336,096 $ 84,320 $ 24,906 $ 1,357,177 6. other Debt Considerations In the fiscal year, the City refunded Energy System Revenue Bonds, Series 2010B, and the Energy System Revenue Bonds, Series 2018 with the issue of Energy System Refunding Revenue Bonds, Series 2024. The par amount of the Series 2010B bonds that was refunded totaled $122,280,000 and the par value of the Series 2018 bonds that was refunded totaled $97,910,000 leaving a balance of $0. The par amount of the 2024 bonds totaled $199,190,000. The aggregate difference between the debt service of the refunded debt and the new debt was a reduction of $21,626,119. The economic gain on this refund totaled $10,512,524. The refunding transaction was pre-planned in the original issue and any economic benefit was included in the future debt service calculation of the Series 2010B and Series 2018 bonds. In the fiscal year, the City refunded Consolidated Utility System Revenue Bonds, Series 2010A and the Consolidated Utility System Revenue Bonds, Series 2017 with the issue of Consolidated Utility System Refunding Revenue Bonds, Series 2024. The par amount of the Series 2010A bonds that was refunded totaled $117,015,000 and the Series 2017 bonds was $90,405,000, leaving a balance of $0 . The par amount of the 2024 bonds totaled $180,995,000. The aggregate difference between the debt service of the refunded debt and the new debt was a reduction of $12,988,291. The economic gain on this refund totaled $8,210,872. This refunding transaction was anticipated in the original issue and any economic benefit was included in the future debt service calculation of the Series 2010A and the Series 2017 bonds. The City, as of September 30, 2024, nor at any time during fiscal year 2024, did not have a line of credit upon which to borrow additional funds. 7. Conduit Debt obligations From time to time, the City has acted as a conduit for the issuance of bonds for non-profit organizations for the acquisition, construction, and improvement of housing, educational, and medical facilities deemed to be in the public interest, and has issued Industrial Revenue bonds to provide financial assistance to private-sector entities for the acquisition and construction of industrial and commercial facilities deemed to be in the public interest. The bonds are secured by the property financed and are payable solely from payments received on the underlying loans. Upon repayment of the bonds, ownership of the acquired facilities transfers to the private-sector entity served by the bond issuance. Neither the City, the State, nor any political subdivision thereof is obligated in any manner for repayment of the bonds. ● As of September 30, 2024, there were four series of Health Facilities Revenue Refunding Bonds outstanding. The original issue amounts totaled $357.3 million and the outstanding balance as of September 30, 2024 was $335.1 million. -- 86 of 220 -- ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 87 City of Tallahassee nOTES TO FInAnCIAL STATEmEnTS note IV - Detailed notes - All Funds (Continued) H. Long-Term Debt (Continued) ● As of September 30, 2024, there was one Florida State University School Lease Revenue Bond outstanding. The original issue amount totaled $18.1 million and the outstanding balance as of September 30, 2024 was $2.94 million. ● As of September 30, 2024, there was one Industrial Revenue Bond outstanding. The original issue amount totaled $5.4 million and the outstanding balance as of September 30, 2024 was $4.5 million. I. net Position The business-type fund financial statements utilize a net position presentation. Net position is categorized as net investment in capital assets, restricted or unrestricted. 1. net Investment in Capital Assets Net Investment in Capital Assets is intended to reflect the portion of net position associated with non-liquid, capital assets less outstanding capital asset related debt. Related debt includes the outstanding balances of any bonds, mortgages, notes, or other borrowings attributable to the acquisition, construction, or improvement of capital assets of the City. 2. Restricted Assets Restricted Assets are subject to constraints that are either (a) externally imposed by creditors (such as debt covenants), grantors, contributors, or laws or regulations of other governments or (b) imposed by law through constitutional provisions or enabling legislation. 3. Unrestricted Assets Unrestricted Assets are the portion of net position that are neither invested in capital assets nor restricted for use by a third party. The net position shown in government-wide financial statements was changed beginning in fiscal year 2012 to comply with GASB Statement No. 54, “Fund Balance Reporting and Governmental Fund Type Definitions”. The details of net position presentation are explained in Note IV.I. “Fund Balance” below. J. Fund Balance The City classifies governmental fund balances as follows: Non-spendable Fund Balance - includes fund balance amounts that cannot be spent either because it is a) not in a spendable form, such as inventory or b) because it is legally or contractually required to be maintained intact. Spendable Fund Balance Restricted – fund balance amounts constrained for specific purposes that are externally imposed by providers, such as creditors, or amounts constrained due to constitutional provisions or enabling legislation. Committed – fund balance amounts constrained for specific purposes imposed by majority vote of the City Commission. Assigned – spendable fund balance amounts transferred from committed funds into projects or other funds under the control of the department budgeted to receive the committed funds. Budgetary control is established within each fund and department. The City Manager or designee may transfer amounts between departments within the same fund. These transfers are not specifically approved by the City Commission. Unassigned – residual positive fund balance within the General Fund that was not classified within the categories defined above. Unassigned fund balance may also include negative balances for any governmental fund if expenditures exceed amounts restricted, committed, or assigned for those specific purposes. The City spends restricted amounts first when both restricted and unrestricted fund balances are available unless there are legal documents/contracts that prohibit doing this, such as grant agreements requiring dollar for dollar spending. Additionally, the City would first use committed, then assigned, and lastly unassigned amounts of unrestricted fund balance when expenditures are made. -- 87 of 220 -- 88 ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 City of Tallahassee nOTES TO FInAnCIAL STATEmEnTS note IV - Detailed notes - All Funds (Continued) J. Fund Balance (Continued) The City Commission has established an emergency reserve policy and fund, referred to as the Deficiencies Fund, in order to meet unforeseen expenditures. The target amount per the policy is a maximum level of two (2) months of general government operating expenditures of the ensuing fiscal year’s operating budget. Use of the Deficiencies Fund requires approval by the City Commission. The Deficiencies Fund is contained as a separate sub-fund within the General Fund and the balance is classified as committed fund balance within the General Fund. A schedule of City fund balances is provided below (in thousands): Non- Spendable Restricted Committed Assigned Unassigned Total General Fund Community Development $ - $ - $ - $ 417 $ - $ 417 Emergency Management - - 27,087 - - 27,087 General Government - - - 2,338 - 2,338 Inventory 925 - - - - 925 Police Evidence Holding Cash 1,037 - - - - 1,037 Scholarship Assistance - - 156 - - 156 Unassigned - - - - 1,207 1,207 Total General Fund 1,962 - 27,243 2,755 1,207 33,167 Other Governmental Funds Advances to Other Funds - 10,355 - - - 10,355 Animal Services - 155 - - - 155 Building Improvements - - 2,571 - - 2,571 Cemetery Grounds Maintenance - - 2,129 - - 2,129 Community Development - 33,139 3,427 - - 36,566 Environmental Cleanup - 807 - - - 807 General Government - - 3,631 - - 3,631 Historic Property Preservation - - 1,040 - - 1,040 Housing - 2,648 3,483 - - 6,131 Land/Neighborhood Improvements - 61 1,238 - - 1,299 Law Enforcement Justice Assistance - 22 - - - 22 Park Enhancements - 342 1,404 - - 1,746 Police Enforcement/Crime Prevention - 13 685 - - 698 Police Equipment - - 1,339 - - 1,339 Police Mentoring - 3 - - - 3 Public Infrastructure - 36 32,186 - - 32,222 Public Safety Campus - - 24,083 - - 24,083 Public Safety - Building Code - 2,641 - - - 2,641 Road Improvements - 2,427 5,450 - - 7,877 Sidewalks/Pedestrian & Bike Paths - 7,951 3,837 - - 11,788 Technology Upgrades - - 3,272 - - 3,272 Traffic Signals - 13 - - - 13 Unassigned - - - - (2,845) (2,845) Total Other Governmental Funds - 60,613 89,775 - (2,845) 147,543 Total Fund Balances $ 1,962 $ 60,613 $ 117,018 $ 2,755 $ (1,638) $ 180,710 -- 88 of 220 -- ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 89 City of Tallahassee nOTES TO FInAnCIAL STATEmEnTS note V - other Information A. outstanding Contracts The City has outstanding commitments on various contracts for construction and other projects. These commitments, as of September 30, 2024, in the respective funds are as follows (in thousands): General Fund $ 6,317 Electric 16,727 Gas 1,180 Sewer 19,480 Stormwater Management 7,426 Water 7,795 Airport 20,849 Nonmajor Governmental 52,699 Nonmajor Enterprise 38,042 Internal Service Funds 21,259 Total $ 191,774 Long-term purchase contract obligations for the purchase of gas and energy are disclosed in Note V.E. Long-term contracts are not included in the above outstanding commitment balances. B. Risk Management Program The risk management program provides coverage for Workers’ Compensation by self-insuring primary losses up to $1,250,000 and losses above that amount are insured through an excess policy. General liability, automobile and employment liability are totally self-insured. General and automobile liability losses are statutorily limited by sovereign immunity of $200,000 per person and $300,000 per accident. Prior to October, 2011, the statutory limit was $100,000 per person and $200,000 per accident. The risk management program is also responsible for the purchase of certain other coverages including Aviation liability coverage. Specialized policies for police and fire statutory death benefits and a policy providing a lump sum benefit for firefighter cancer claims are also purchased. The risk management program provides Employment Practice Liability such as allegations of race, gender and other discrimination or disparate treatment allegations. This exposure is also self-insured. The City’s buildings and contents are covered by two property insurance policies: one for municipal locations and one for utility locations, both with varying deductibles. The Risk Management Fund, which is classified as an internal service fund, is responsible for collecting premiums from all of the departments for both self insured and commercial programs, paying claim settlements on the self insured claims and procuring commercial insurance. Claims settlements and loss expenses are reserved for the expected value of the known losses and also for estimated incurred but not reported losses (IBNRs). Annually, as of September 30, the program has a third party actuary review the claim history for all claim years for which open self-insurance claims are outstanding. The actuary projects the ultimate claim payment obligation (including the IBNRs) for each year’s claim experience and projects the new year’s probable loss fund cost and a discounted alternative. The City elected to establish the liability at the discounted value (2.0%). Changes in the balances of self-insured claims for the year ended September 30, 2024 are as follows (in thousands): Unpaid claims - October 1 (including IBNRs) $ 19,097 Expenses 1,755 Claim payments (5,162) Unpaid claims - September 30 (including IBNRs) $ 15,690 -- 89 of 220 -- 90 ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 City of Tallahassee nOTES TO FInAnCIAL STATEmEnTS note V - other Information (Continued) C. Litigation The City is involved in pending lawsuits. The City Attorney estimates that the potential claims against the City not covered by insurance resulting from litigation would not materially affect the financial position of the City. D. Federal and State Grants The City has received numerous federal and state grants that are subject to financial and compliance audits made in accordance with the Office of Management and Budget uniform administrative requirements, cost principles and audit requirements. Certain grants, such as the Community Development Block Grant, HOME grant, State Housing Initiatives Partnership (SHIP), and others, provide for the issuance of loans to qualifying individuals or non-profit entities. Loans to individuals include down payment assistance loans that are not repaid unless certain events occur, such as the sale or refinancing of a purchased home within a certain time period. Loans to non-profit entities are sometimes only payable if the entity has sufficient annual cash flow, or may be forgiven by the City Commission to prevent economic hardship for the entity. Since repayment of these loans is contingent upon various factors, the loans are not reported in the financial statements. As of September 30, 2024, the contingent loans for Special Projects totaled $4.4 million*. The contingent down payment assistance loan balance for SHIP totaled $1.7 million. e. Long-Term Contracts The City acquires natural gas and power through a combination of short, medium and long-term contracts. The City currently has 8 long-term natural gas “prepay” contracts discounted from an index: 1) 20-Year contract with Tennessee Energy Acquisition Corporation (TEAC); 2) 30-Year contract with TEAC ending in 2048; 3) 30-year contract with Blackbelt Energy ending in 2048; 4) TEAC 30-year contract ending in 2052; 5) Municipal Gas Authority of Georgia (MGAG)/Citadel 30-year contract ending in 2052; 6) MGAG/Citibank 30-year contract ending in 2052; 7) SEA/Morgan Stanley 30-year contract ending in 2052; and 8) SEA/J. Aron 30-year contract ending in 2053. These contracts save the City $6.2 million each year through 2053. The City also uses financial instruments to hedge natural gas for future periods. The City is currently hedged for approximately 78% of the City’s gas needs through FY 2025. The City’s obligation for financial hedges is limited to the difference between the hedge price and market price. The City is not obligated to purchase the underlying gas supply. Energy contracts are managed and monitored by the City’s Energy Services Department. Revenues from customers through the Energy Cost Recovery Clause (ECRC) and the Purchased Gas Recovery Clause (PGRC) are designed to recover the costs incurred by these purchase commitments. The City engages in the wholesale power markets on a short-term and long-term basis to buy or sell power when market prices are more economical than native generation. The City participates daily in the power markets for short-term opportunities to deliver the lowest cost power to our customers. The City continuously evaluates long-term purchase or sales offers through our internal planning process. The City has two Purchased Power Agreements (PPA) for solar energy. The first 20 MW of solar started in the fall of 2017 and the second 40 MW solar contract started in December of 2019. Each of these contracts are for 20 years with option clauses to either purchase or extend their terms. These contracts are managed and monitored by the City’s Energy Services Department and Electric Utility. The following is a schedule, by years, of approximate minimum future purchase commitments on long-term purchase contracts as of September 30, 2024 (in thousands): Years ending September 30, Gas Contracts energy Contracts (including Solar PPA) Total 2025 $ 49,132 $ 5,381 $ 54,513 2026 53,492 5,593 59,085 2027 56,843 5,813 62,656 2028 55,901 6,068 61,969 2029 55,825 6,307 62,132 Thereafter 1,488,938 60,402 1,549,340 Total $ 1,760,131 $ 89,564 $ 1,849,695 -- 90 of 220 -- ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 91 City of Tallahassee nOTES TO FInAnCIAL STATEmEnTS note V - other Information (Continued) F. Pension Plan obligations The City of Tallahassee sponsors and administers two pension plans, established by Chapter 14 of the City Code of Ordinances. There is one defined benefit plan and one defined contribution plan comprised of the following: name Type General Employees Group (Article II) Cost-sharing multiple-employer, defined benefit Police Officers Group (Article III) Single-employer, defined benefit Firefighters Group (Article IV) Single-employer, defined benefit Matched Annuity Pension Plan (Article V) Multiple-employer, defined contribution The plans are administered by the City of Tallahassee Treasurer-Clerk’s Office, under guidance from the plans’ Board of Trustees, which is composed of the members of the City Commission and one City police officer or firefighter. The City police officer or firefighter is elected by a majority of the police officers and firefighters who are members of the plans. The City’s general employee defined benefit provision and defined contribution provision is also provided for the employees of Blueprint Intergovernmental Agency (Blueprint), the Capital Region Transportation Planning Agency (CRTPA) and the Consolidated Dispatch Agency (CDA). Blueprint is a jointly governed organization, while CRTPA and CDA are both joint ventures. The defined benefit provision for police officers and firefighters is provided only for City employees. All accumulated plan assets of the defined benefit plan are available to pay any benefit to any plan member or beneficiary. The aggregate amount of net pension assets, liabilities, related deferred inflows and outflows of resources, and pension expense for the City’s defined benefit pension plan are summarized as follows: Plan obligations and expenses (in thousands): General employees - City Police officers Firefighters Total Primary Government Component Unit Net Pension Liability/ (Asset) $ 114,717 $ 65,816 $ 50,852 $ 231,385 $ 72 Pension Related Deferred Outflows 82,762 27,637 20,045 130,444 74 Pension Related Deferred Inflows (4,424) (5,523) (5,351) (15,298) (5) Pension Expense $ 36,839 $ 12,198 $ 8,667 $ 57,704 $ 21 The 2024 membership statistical information is as follows: General employees - City Police officers Firefighters Total Retirees and beneficiaries of deceased retirees currently receiving benefits 1,983 329 261 2,573 Terminated employees entitled to benefits but not yet receiving benefits 273 36 10 319 Active Employees 1,966 343 261 2,570 The defined benefit and defined contribution provisions are reported separately in the financial statements. The City of Tallahassee does not issue a stand-alone financial report for the Plan. The provisions of the Plan are “qualified” under the Internal Revenue Service Code and employee contributions are tax deferred. 1. Defined Benefit Provision The Plan is established for all three programs in Chapter 14 of the City Code of Ordinances, through Parts A, B, C and D in Article II for general employees with Parts A, B and C closed to new participants. Effective April 1, 2013, the City Commission approved changes to the City’s General Employees’ Pension Plan creating Part D participants. Part D provides coverage to all new employees hired after that date. For police officers and firefighters, Article III -- 91 of 220 -- 92 ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 City of Tallahassee nOTES TO FInAnCIAL STATEmEnTS note V - other Information (Continued) F. Pension Plan obligations (Continued) and IV, respectively, Parts A and B are closed to new participants while Parts C and D provide coverage to all new employees. All members of the Plan are covered by one of these parts depending upon employment date. These parts provide a detailed description of the various defined benefit provisions. These provisions include the types of employees covered, benefit provisions, employee eligibility requirements for normal, early and/or vested retirements, and the related benefits of these retirements, pre-retirement death benefits, and provisions for disability retirements. There are also post retirement cost-of-living adjustments (COLA) and health care supplements. General Employees Police Officers Firefighters Part C-Employees hired prior to April 1, 2013 Part D-Employees hired after April 1, 2013 Part C-Employees hired prior to October 1, 2021 Part D-Employees hired after October 1, 2021 Part C-Employees hired prior to October 1, 2017 Part D-Employees hired after October 1, 2017 Normal Retirement Benefits: Age 62 (or 30 years of Credited Service, regardless of age) 65 (or 33 years of Credited Service, regardless of age) 55 (or 25 years of Credited Service, regardless of age) 55 (or 25 years of Credited Service, regardless of age) 55 (or 25 years of Credited Service, regardless of age) 55 (or 25 years of Credited Service, regardless of age) Years of Credited Service (minimum) 5 5 5 10 5 10 Average Final Compensation (AFC) Higher of: 1) final 3 yrs; 2) any consecutive 3 yrs - 1/1987 to 12/2005, escalated by 3%; or 3) any consecutive 3 yrs during 1/1987 to the date of retirement. Average of the highest consecutive 5 years of Credited Service Higher of: 1) final 3 yrs; 2) any consecutive 3 yrs - 1/1987 to 12/2005, escalated by 3%; or 3) any consecutive 3 yrs during 1/1987 to the date of retirement. Average of the highest consecutive 5 years of Credited Service Higher of: 1) final 3 yrs; 2) any consecutive 3 yrs - 1/1987 to 12/2005, escalated by 3%; or 3) any consecutive 3 yrs during 1/1987 to the date of retirement. Average of the highest consecutive 5 years of Credited Service Benefit calculation 2.25% x AFC x Years of Credited Service, 3% for each year of pension participation as an Elected Official, and 2% for each year of purchased military and other public service 2.25% x AFC x Years of Credited Service, 3% for each year of pension participation as an Elected Official, and 2% for each year of purhased military and other public service AFC x 2% - Purchased military or other public service, 3% - first 20 yrs of Credited Service, and 4% - after 20 yrs of Credited Service (up to an add’l 5 yrs and 3 mths) AFC x 2% - Purchased military or other public service, and 3% - each year of Credited Service AFC x 2% - Purchased military or other public service, 3% - first 20 yrs of Credited Service, and 4% - after 20 yrs of Credited Service (up to an add’l 5 yrs and 3 mths) AFC x 2% per year of purchased military and out-of-city public service, and 3% per year of Credited Service Maximum Benefit 81% of AFC 81% of AFC 81% of AFC 81 % of AFC 81% of AFC 81% of AFC COLA 3% increase in benefits each 10/1 starting at the later of normal retirement date, or age 55 (under age and service eligibility); or age 50 (under service eligibility) 3% increase in benefits each 10/1 starting at the later of normal retirement date or age 65 3% increase in benefits each 10/1 starting between age 52 and 62 depending on pension entry date. 3% increase in benefits each 10/1 starting between age 52 and 62 depending on pension entry date. 3% increase in benefits each 10/1 starting between age 52 and 62 depending on pension entry date. 3% increase in benefits each 10/1 starting at the later of normal retirement date or age 62 -- 92 of 220 -- ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 93 City of Tallahassee nOTES TO FInAnCIAL STATEmEnTS note V - other Information (Continued) F. Pension Plan obligations (Continued) General Employees Police Officers and Firefighters Early Retirement If a member is retiring under the age and service eligibility, Normal Retirement Benefit is reduced by 4.8% per year for each year by which the Early Retirement date precedes the Normal Retirement date. If a member is retiring under the service eligibility, the Normal Retirement Benefit is reduced by 5% per year for each year by which the Early Retirement date precedes the Normal Retirement date. Eligibility occurs at age 50 and 5 years of Credited Service or after completion of 20 years of Credited Service. If the member is retiring after attainment of age 50 and 5 years of Credited Service eligibility, the normal benefit is reduced by 3.0% per year for each year by which the Early Retirement date precedes the Normal Retirement date for Firefighters and Part C Police Officers. For Part D Police Officers, the benefit is reduced by 6.0%. If the member is retiring after attainment of 20 years of Credited Service, the Normal Retirement Benefit is reduced by 6.8% per year for each year by which the Early Retirement date precedes the 25 years of service attainment date for Firefighters and Part D Police Officers. For Part C Police Officers, the benefit is reduced by 7.2%. Disability Five years of Credited Service for non-service connected disability. Immediate eligibility for service connected disability. Benefit: The greater of 1) the member’s accrued benefit to date of disability; and 2) the member’s benefit with service projected to normal retirement date not to exceed 50% of AFC in effect on the date of disability. Two years of Credited Service for non-service connected disability. Immediate eligibility for service connected disability. Benefit: The greater of 1) the member’s accrued benefit to date of disability; or 2) the member’s benefit with service projected to normal retirement date not to exceed 50% of AFC in effect on the date of disability. Contribution Rates - actuarially determined for the year ended September 30, 2024 City 21.50% 38.88% 39.31% Employee 5.00% 10.99% Part C - 18.69% Part D - 16.69% Net Pension Liability - The total pension liability was determined by an actuarial valuation as of October 1, 2022, using a measurement date of September 30, 2024. The net pension liability was also determined using a measurement date of September 30, 2024. The components of the net pension liability of the participating employers in the general employees, police officers and firefighters plans as of September 30, 2024 were as follows (in thousands): General employees Police officers Firefighters Total pension liability $ 1,550,808 $ 485,538 $ 330,240 Plan fiduciary net position 1,546,757 451,572 302,469 Net pension asset/liability 4,051 33,966 27,771 Plan fiduciary net position as a % of total pension liability 99.74% 93.00% 91.59% City’s proportion of the net pension asset/liability 94.16% 100.00% 100.00% The City’s Proportionate share of the General Employees’ Pension Plan is based on the covered payroll and it decreased from 94.76% in 2023 to 94.16% in 2024. The total pension liability was determined by an actuarial valuation as of October 1, 2022, using the following significant actuarial assumptions applied to all periods included in the measurement: The actuarially determined contribution rates are calculated as of October 1 which is two years prior to the end of the fiscal year in which contributions are reported. The actuarially determined contribution is projected to the contribution year using conventional actuarial projection methods. -- 93 of 220 -- 94 ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 City of Tallahassee nOTES TO FInAnCIAL STATEmEnTS note V - other Information (Continued) F. Pension Plan obligations (Continued) The assumptions used in determining the total pension liability are as follows: General Employees Police Officers Firefighters Valuation Date October 1, 2022 October 1, 2022 October 1, 2022 Actuarial Cost Method Entry age, normal Entry age, normal Entry age, normal Amortization Method Level percentage, closed Level percentage, closed Level percentage, closed Remaining Amortization Period 26 years 26 years 26 years Asset Valuation Method 20% of the difference between expected actuarial value and fair value is recognized annually with a 20% corridor around fair value 20% of the difference between expected actuarial value and fair value is recognized annually with a 20% corridor around fair value 20% of the difference between expected actuarial value and fair value is recognized annually with a 20% corridor around fair value Inflation rate 2.50% 2.50% 2.50% Salary Increase A range of 2.95 to 5.0% based on years of service A range of 4.5 to 6.4% based on years of service A range of 4.4 to 5.75% based on years of service Investment rate of return 7.25% 7.25% 7.25% Mortality Rate: The mortality tables used are the same as those used in the July 1, 2022 Pension Actuarial valuation of the Florida Retirement System (FRS) for Regular (other than K-12 School Instructional Personnel) members. These tables are based on the Pub-2010 mortality tables with mortality improvements projected for healthly lives to all future years after 2010 using Scale MP-2018. The mortality tables used are the same as those used in the July 1, 2022 Pension Actuarial valuation of the Florida Retirement System (FRS) for Special Risk members. These tables are based on the Pub-2010 mortality tables with mortality improvements projected for healthly lives to all future years after 2010 using Scale MP-2018. The mortality tables used are the same as those used in the July 1, 2022 Pension Actuarial valuation of the Florida Retirement System (FRS) for Special Risk members. These tables are based on the Pub-2010 mortality tables with mortality improvements projected for healthly lives to all future years after 2010 using Scale MP-2018. Experience Study The last experience study was prepared on June 24, 2016. Assumption changes resulting from this experience study were implemented for the fiscal year ending September 30, 2017. The last experience study was prepared on June 24, 2016. Assumption changes resulting from this experience study were implemented for the fiscal year ending September 30, 2017. The last experience study was prepared on June 24, 2016. Assumption changes resulting from this experience study were implemented for the fiscal year ending September 30, 2017. -- 94 of 220 -- ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 95 City of Tallahassee nOTES TO FInAnCIAL STATEmEnTS note V - other Information (Continued) F. Pension Plan obligations (Continued) Changes in the Net Pension Liability - The Plan is presenting net pension liability for the year ended September 30, 2024 based on the September 30, 2023 measurement date as follows (in thousands): General Employees Pension Plan (including Component Unit) - Increase(Decrease) Total Pension Liability (a) Plan Fiduciary net Position (b) net Pension Liability (a) - (b) Balances at September 30, 2023 $ 1,363,214 $ 1,277,244 $ 85,970 Change in Allocation Percentage (1,433) (1,348) (85) Service Cost 17,673 - 17,673 Interest 99,290 - 99,290 Assumption Changes 24,334 - 24,334 Employer Contributions - 25,706 (25,706) Employee Contributions - 6,552 (6,552) Net Investment Income - 80,837 (80,837) Benefit Payments (74,774) (74,774) - Refunds (599) (599) - Administrative Expense - (702) 702 Net Changes 64,491 35,672 28,819 Balances at September 30, 2024 $ 1,427,705 $ 1,312,916 $ 114,789 Police officers Pension Plan - Increase(Decrease) Total Pension Liability (a) Plan Fiduciary net Position (b) net Pension Liability (a) - (b) Balances at September 30, 2023 $ 445,247 $ 390,916 $ 54,331 Service Cost 7,338 - 7,338 Interest 32,591 - 32,591 Assumption Changes 8,180 - 8,180 Employer Contributions - 9,452 (9,452) Employee Contributions - 2,996 (2,996) Net Investment Income - 24,389 (24,389) Benefit Payments (24,123) (24,123) - Refunds (210) (210) - Administrative Expense - (213) 213 Net Changes 23,776 12,291 11,485 Balances at September 30, 2024 $ 469,023 $ 403,207 $ 65,816 Firefighters Pension Plan - Increase(Decrease) Total Pension Liability (a) Plan Fiduciary net Position (b) net Pension Liability (a) - (b) Balances at September 30, 2023 $ 306,087 $ 261,596 $ 44,491 Service Cost 4,995 - 4,995 Interest 22,354 - 22,354 Assumption Changes 5,458 - 5,458 Employer Contributions - 6,658 (6,658) Employee Contributions - 3,454 (3,454) Net Investment Income - 16,477 (16,477) Benefit Payments (17,901) (17,901) - Refunds (95) (95) - Administrative Expense - (143) 143 Net Changes 14,811 8,450 6,361 Balances at September 30, 2024 $ 320,898 $ 270,046 $ 50,852 -- 95 of 220 -- 96 ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 City of Tallahassee nOTES TO FInAnCIAL STATEmEnTS note V - other Information (Continued) F. Pension Plan obligations (Continued) Investments - Plan assets are managed in accordance with the Pension Investment Policy. The table below presents the adopted asset allocation as of September 30, 2024. Asset Class Target Allocation Percentage Long-Term expected Real Rate of Return Domestic Equity 35.5 8.1 International Equity 9.0 8.5 Emerging Markets Equity 4.0 10.2 Fixed Income 16.5 2.1 Real Estate 15.0 5.6 Private Equity 7.5 12.1 Private Credit 7.5 7.0 Timber 5.0 4.9 Total 100.0 -- 96 of 220 -- ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 97 City of Tallahassee nOTES TO FInAnCIAL STATEmEnTS note V - other Information (Continued) F. Pension Plan obligations (Continued) The Plan’s investments are managed by various investment managers under contract with the Boards who have discretionary authority of the assets managed by them and within the Plan’s investment guidelines as established by the Board. The investments are held in trust by the Plan’s custodian in the Plan’s name. The City of Tallahassee Sinking Fund Commission is responsible for making investment policy changes. These assets are held exclusively for the purpose of providing benefits to members of the Plan and their beneficiaries. For the year ended September 30, 2024, the annual money-weighted rate of return on the General Employees, Police Officers, and Firefighters pension plan investments, net of investment expense, was 15.4%. The money-weighted rate of return takes into account cash flows into and from the various investments of the Plan. The long-term expected arithmetic rate of return on pension plan investment is based upon an asset allocation study that was conducted for the Plan by its investment consultant toward the end of fiscal year 2022. The study was prepared by the Pension Plan’s investment consultant, and went through numerous iterations before a final asset allocation was established. The study looked at expected rates of return for twenty-one (21) different asset classes, as well as examining expected standard deviations and correlations among these various asset classes. Discount Rates – The discount rates used to measure the total pension liability of the Plan are indicated below. This single discount rate was based on the expected rate of return on pension plan investments of 7.25%. The projection of cash flows used to determine this single discount rate assumed that plan member contributions will be made at the current contribution rate and that employer contributions will be made at rates equal to the difference between the total actuarially determined contribution rates and the member rate. Based on these assumptions, the pension plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments (7.25%) was applied to all periods of projected benefits payments to determine the total pension liability. The discount rates as of September 30, 2024 were reduced by .15% from 2023 to 7.25%. General employees Police officers Firefighters 7.25% 7.25% 7.25% The following presents the Plan’s net pension liability, calculated using a single discount rate of 7.25%, as well as what the plan’s net pension liability would be if it were calculated using a single discount rate that is 1-percentage point lower or 1-percentage point higher: Sensitivity of the Net Pension (Asset) Liability to the Single Discount Rate Assumption (in thousands) 1% Decrease 6.25% Current Single Discount Rate 7.25% 1% Increase 8.25% Primary Government-General Plan $ 296,366 $ 114,717 $ (35,211) Primary Government-Police Plan 127,028 65,816 15,463 Primary Government-Fire Plan 91,594 50,852 17,196 Primary Government-Component Unit 186 72 (22) Pension Expense and Deferred Outflows (Inflows) of Resources Related to Pensions - In accordance with GASB 68, paragraphs 54 and 71, changes in the net pension liability are recognized as pension expense in the current measurement period, except as shown below. For each of the following, a portion is recognized in pension expense in the current measurement period, and the balance is amortized as deferred outflows or inflows of resources using a systematic and rational method over a closed period, as defined below: ● Differences between expected and actual experience with regard to economic and demographic factors which are amortized over the average expected remaining service life of all employees that are provided with pensions through the pension plan, both active and inactive. -- 97 of 220 -- 98 ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 City of Tallahassee nOTES TO FInAnCIAL STATEmEnTS note V - other Information (Continued) F. Pension Plan obligations (Continued) ● Changes of assumptions or other inputs which are amortized over the average expected remaining service life of all employees that are provided with pensions through the pension plan, both active and inactive. ● Changes in proportion and differences between contributions and proportionate share of contributions which are amortized over the average expected remaining service life of all employees that are provided with pensions through the pension plan, both active and inactive. ● Differences between expected and actual earnings on pension plan investments are amortized over five years. General Employees – Plan - For the year ended September 30, 2024, the general employees pension plan recognized pension expense of $38,637,000 for the plan. At September 30, 2024, the plan reported deferred outflows of resources and deferred inflows of resources related to the general employee pension plan from the following sources (in thousands): Deferred outflows of Resources Deferred Inflows of Resources net Deferred outflows of Resources Differences between expected and actual experience $ 7,060 $ (312) $ 6,748 Assumption changes 20,942 (4,076) 16,866 Change in Net Pension Liability due to Change in Cost-Sharing Allocation Percentages 470 (470) - Net difference between projected and actual earnings on pension plan investments 32,028 - 32,028 Contributions after measurement date 26,938 - 26,938 Total $ 87,438 $ (4,858) $ 82,580 Deferred outflows of resources related to the general employee pension plan of $26,938,000 resulting from City contributions to the plan paid subsequent to the measurement date and prior to the City’s reporting period will be recognized as a reduction of net pension liability in the fiscal year ended September 30, 2025. Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in future pension expense, as follows: Year ending September 30, net Amount (in thousands) 2025 $ 2,089 2026 (56) 2027 46,246 2028 7,363 Total $ 55,642 -- 98 of 220 -- ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 99 City of Tallahassee nOTES TO FInAnCIAL STATEmEnTS note V - other Information (Continued) F. Pension Plan obligations (Continued) General Employees – City – For the year ended September 30, 2024, the City recognized pension expenses of $36,574,000 for its proportionate share of the general employees pension plan. At September 30, 2024, the City and it’s component unit reported deferred outflows of resources and deferred inflows of resources related to the general employee pension plan from the following sources (in thousands): Deferred outflows of Resources Deferred Inflows of Resources net Deferred outflows of Resources Difference between expected and actual experience $ 6,697 $ (294) $ 6,403 Assumption changes 19,847 (3,864) 15,983 Net difference between projected and actual experience on pension investments 30,393 - 30,393 Change in Net Pension Liability due to change in cost sharing allocation percentage 130 (271) (141) Contributions after measurement date 25,769 - 25,769 Total $ 82,836 $ (4,429) $ 78,407 Deferred outflows of resources related to the general employee pension plan of $25,769,000, resulting from City contributions to the plan paid subsequent to the measurement date and prior to the City’s reporting period, will be recognized as a reduction of the net pension liability in the fiscal year ended September 30, 2025. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to the plan pension expense will be recognized in future pension expenses as follows: Year ending September 30, net Amount (in thousands) 2025 $ 1,855 2026 (17) 2027 43,840 2028 6,960 Total $ 52,638 Police officers - For the year ended September 30, 2024, the police officers pension plan recognized pension expense of $12,198,000. At September 30, 2024, the City reported deferred outflows of resources and deferred inflows of resources related to the police officers employee pension plan from the following sources (in thousands): Deferred outflows of Resources Deferred Inflows of Resources net Deferred outflows of Resources Differences between expected and actual experience $ 866 $ - $ 866 Net difference between projected and actual earnings on pension plan investments 10,154 - 10,154 Assumption Changes 6,970 (5,523) 1,447 Contributions after measurement date 9,647 - 9,647 Total $ 27,637 $ (5,523) $ 22,114 -- 99 of 220 -- 100 ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 City of Tallahassee nOTES TO FInAnCIAL STATEmEnTS note V - other Information (Continued) F. Pension Plan obligations (Continued) Deferred outflows of resources related to the police officers pension plan of $9,647,000, resulting from City contribu- tions to the plan paid subsequent to the measurement date and prior to the City’s fiscal year, will be recognized as a reduction of the net pension liability in the fiscal year ended September 30, 2025. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to the plan pension expense will be recognized in future pension expenses, as follows: Year ending September 30, net Amount (in thousands) 2025 $ (570) 2026 (1,931) 2027 12,292 2028 2,361 2029 315 Total $ 12,467 Firefighters - For the year ended September 30, 2024, the firefighters pension plan recognized pension expense of $8,667,000. At September 30, 2024, the City reported deferred outflows of resources and deferred inflows of resources related to the firefighters pension plan from the following sources (in thousands): Deferred outflows of Resources Deferred Inflows of Resources net Deferred outflows of Resources Differences between expected and actual experience $ 1,175 $ (505) $ 670 Net difference between projected and actual earnings on pension plan investments 6,377 - 6,377 Assumption Changes 5,914 (4,846) 1,068 Contributions after measurement date 6,579 - 6,579 Total $ 20,045 $ (5,351) $ 14,694 Deferred outflows of resources related to the firefighters pension plan of $6,579,000, resulting from City contributions to the plan paid subsequent to the measurement date and prior to the City’s reporting period, will be recognized as a reduction of the net pension liability in the fiscal year ended September 30, 2025. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to the plan pension expense will be recognized in future pension expenses, as follows: Year ending September 30, net Amount (in thousands) 2025 $ 274 2026 (1,661) 2027 6,894 2028 1,415 2029 853 Thereafter 340 Total $ 8,115 2. Defined Contribution Provision All employees (general, firefighters, and police officers) may elect to contribute a portion of their salary to the Plan. General employees, firefighters and police officers can contribute up to but not to exceed the maximum amount allowed by the Internal Revenue Service. Each employer contributes 5% to each general employee’s Matched Annuity Plan (MAP) account. Upon reaching normal retirement age or retiring under the Plan, a participant shall be paid -- 100 of 220 -- ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 101 City of Tallahassee nOTES TO FInAnCIAL STATEmEnTS note V - other Information (Continued) F. Pension Plan obligations (Continued) his and the City’s contributions, together with accrued earnings. If a general employee uses the contributions and accrued earnings to receive an annuitized payment stream, the Plan will increase the amount of funds (only on the employer’s 5%, employee flex matched contribution and employees’ contribution up to the 5%) used by the participant by a factor of 50%. Employee contributions (including the City’s 5% contribution to each general employee’s MAP account) plus accrued earnings thereon are 100% refundable if the employee elects to terminate his vesting rights or is not vested at the date of employment termination. For the year ended September 30, 2024, the contributions and forfeitures to the MAP account totaled $1,244,965 and $182,310 respectively. 3. Statement of Plan net Position as of September 30, 2024 Pension Trust Matched Annuity Pension Plan Assets Cash and Cash Equivalents $ 14,953 $ 13 Receivables Other Receivables - 24 Accrued Interest 6,080 - Total Receivables 6,080 24 Investments, at Fair Value Mutual Index Funds - 190,517 Private Equities 270,111 - Fixed Income Securities 378,330 - Domestic Equities 870,000 - International Equities 206,427 - Private Credit Funds 153,174 - Alternative Investments 282,997 - Timber 117,818 - Total Investments 2,278,857 190,517 Securities Lending Collateral 65,504 - Total Assets $ 2,365,394 $ 190,554 Liabilities and net Position Liabilities Obligations Under Securities Lending 65,504 - Total Liabilities $ 65,504 $ - Net Position Net Position Restricted for Pensions 2,299,890 190,554 Total Liabilities and Net Position $ 2,365,394 $ 190,554 -- 101 of 220 -- 102 ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 City of Tallahassee nOTES TO FInAnCIAL STATEmEnTS note V - other Information (Continued) F. Pension Plan obligations (Continued) 4. Statement of Changes in Plan net Position for the ended September 30, 2024 Pension Trust Matched Annuity Pension Plan Additions Contributions Employer $ 43,165 $ 1,110 Plan Members 14,090 - Total Contributions 57,255 1,110 Investment (Loss) From Investment Activities Gain (Loss) on Sale of Investments 127,050 - Change in Fair Value of Investments 146,990 40,190 Interest Income 25,842 4,573 Dividends 20,938 - Total Investment (Loss) 320,820 44,763 Less Investment Expenses Investment Management Fees 6,695 - Interest Expense 130 - Net Income (Loss) from Investment Activities 313,995 44,763 From Securities Lending Activities Securities Lending Income 5,253 - Less Securities Lending Expenses Investment Management Fees 5,003 - Net Income (Loss) from Securities Lending Activities 250 - Total Net Income (Loss) from Investment Activities 314,245 44,763 Total Additions 371,500 45,873 Deductions Benefits 126,825 10,294 Refunds of Contributions 1,443 - Administrative Expense 1,204 - Total Deductions 129,472 10,294 Change in Net Position 242,028 35,579 Net Position - October 1 2,057,862 154,975 Net Position - September 30 $ 2,299,890 $ 190,554 -- 102 of 220 -- ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 103 City of Tallahassee nOTES TO FInAnCIAL STATEmEnTS note V - other Information (Continued) F. Pension Plan obligations (Continued) 5. Supplemental Plans The City of Tallahassee Supplemental Share Plans for Firefighters and Police Officers were created in 2000 by Sections 14-9.010 and 14-8.010, City Ordinances. Both Plans are defined contribution pension plan covering all full-time Firefighters and Police Officers of the City of Tallahassee. Participation in the Plans are required as a condition of employment. The Plans provide for additional and supplemental pension, death and disability benefits. In addition, the Plans are local law plans subject to provisions of Chapters 175 and 185 of the State of Florida Statutes. The Plans are each governed by a five-member pension board. The Fire Supplemental Share Plan members include two Firefighters, two City residents and a fifth member elected by the other four members of the board. The Police Supplemental Share Plan members include two Police Officers, two City residents and a fifth member elected by the other four members of the board. Contributions to the Plans are the Florida Excise Tax Rebate monies received from the State of Florida pursuant to Florida Statutes Chapters 175 and 185. Participants may not make voluntary contributions to the Plans. The total additions to each participant’s account cannot exceed $55,000 or 100 percent of each participant’s compensation. Each participant’s account is credited with an allocation of the Florida Excise Tax Rebate payment to and among those participants that are entitled on the first day of each plan year. The payments are allocated equally among the total shares of the participants with the number of shares allocated to each participant’s account in accordance with the following schedule: Years of credited service number of Shares 5 or more, but less than 10 1 10 or more, but less than 15 2 15 or more, but less than 20 3 20 or more, but less than 31 4 31 years or more 5 The Florida Excise Tax Rebate payment for each Plan is sent directly to the City of Tallahassee and is deposited into the City’s bank account. Based on the total amount of shares to be distributed to each participant’s account, the City transfers the money received to Empower, a third-party administrator who administers the investments for the Plans. A small portion of the money is held by the City and is included in the City’s cash and investment pool that is available for use by the Plans’ Board of Trustees for administrative and operational expenses. These Plans are not included in the City’s financial statements. The Plans’ financial statements are audited by Saltmarsh, Cleaveland & Gund and a copy of the statements can be obtained by contacting Saltmarshcpa.com. G. other employee Benefits 1. Deferred Compensation The City of Tallahassee offers its employees a deferred compensation plan created in accordance with Internal Revenue Code Section 457. The plan, available to all City employees, permits them to defer a portion of their salary until future years. The deferred compensation is not available to employees until termination, retirement, death, or unforeseeable emergency. In December 1998, the City established a Trust Agreement where all assets and income of the City Deferred Compensation Plan are held in trust for the exclusive benefit of City employees, in accordance with Internal Revenue Code Sections 457 (b) and (g). Thus, plan assets are no longer subject to the claims of the City’s general creditors. 2. Flexible Benefits The City has implemented a “Cafeteria” Plan created in accordance with Internal Revenue Code Section 125. The plan provides employees with an opportunity to select benefits from a menu of options, many of which are offered on a pre-tax basis. -- 103 of 220 -- 104 ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 City of Tallahassee nOTES TO FInAnCIAL STATEmEnTS note V - other Information (Continued) H. Other Post Employment Benefits (OPEB) (Continued) H. other Post employment Benefits (oPeB) 1. oPeB Plan Description The City administers a cost sharing multi-employer, defined benefit other post employment benefits plan, The City of Tallahassee Retiree Medical Insurance Plan (OPEB Plan). The OPEB Plan provides health insurance and prescription drug coverage for eligible retirees and their eligible dependents through the City’s health insurance program, which covers both active and retired employees. Pursuant to Section 112.0801, Florida Statutes, the City is required to permit participation in the health insurance program by retirees and their eligible dependents at a cost to the retiree that is no greater than the cost at which coverage is available for active employees. In addition, the City’s program has elected to provide a partial subsidy to its retirees to offset the cost of such health insurance. The City does not issue a stand-alone financial report on the OPEB Plan. The OPEB Plan is established by City Commission Policy 150. To aid in the administration of the OPEB Plan, the City of Tallahassee created the Retiree Medical Trust (RMI Trust) in January 2010, the provisions of which are in Article VII of Chapter 2 of the City Code of Ordinances. The plan provides health insurance and prescription drug coverage for eligible retirees and their eligible dependents through the City’s health insurance program, which covers both active and retired employees. The OPEB Plan and the RMI Trust are administered by the City of Tallahassee Treasurer-Clerk’s Office, under guidance from the Plan’s Board of Trustees, which is composed of the members of the City Commission and the chairperson of the general employees’ pension advisory committee. The City of Tallahassee does not issue a stand-alone financial report for the RMI Trust. The OPEB plan is also provided for the employees of the Blueprint Intergovernmental Agency (Blueprint), a jointly governed organization, and the Capital Regional Transportation Planning Agency, a joint venture. The aggregate amounts, reported by the City as of September 30, 2024, of net OPEB liabilities, related deferred inflows and outflows of resources, and OPEB expenses using a valuation date and measurement date of September 30, 2023 are summarized as follows: oPeB Plan obligations and expenses Primary Government DIA (Component Unit) Total (in thousands) Net OPEB Liability $ 62,572 $ 104 $ 62,676 OPEB Related Deferred Outflows 17,114 19 17,133 OPEB Related Deferred Inflows (25,492) (21) (25,513) OPEB Expenses (14,621) (8) (14,629) OPEB Plan membership at September 30, 2023 was as follows: Inactive Members or Beneficiaries Currently Receiving Benefits 1,353 Active Members 2,923 Total Members 4,276 Benefits - A member receives a reduced rate on the health insurance premium for the City’s health insurance plan. All reduced rate premiums will be deducted from the retiree’s pension benefit. If the health insurance premium exceeds the pension benefit amount, the member will pay the City for the difference. The following tables provide the amounts of the City’s monthly retiree subsidy that reduces the member’s health insurance premium, which were established by Resolution 11-R-04, effective January 1, 2011: capped as of this date. Therefore, no change is needed for the table below. -- 104 of 220 -- ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 105 City of Tallahassee nOTES TO FInAnCIAL STATEmEnTS note V - other Information (Continued) H. Other Post Employment Benefits (OPEB) (Continued) Retiree with no Medicare Coverage Monthly Subsidy Amount Individual $ 174.88 Two-Party 315.71 Three or More 443.22 Retiree with Medicare CHP* Coverage Monthly Subsidy Amount Individual $ 37.78 Two-Party(Both Medicare) 71.74 Two-Party (One Medicare) 183.40 Family (One or two Medicare) 298.82 Retiree with Medicare BCBS** Coverage Monthly Subsidy Amount Individual $ 159.78 Two-Party(Both Medicare) 336.07 Two-Party (One Medicare) 336.07 Family (One or two Medicare) 463.39 * Capital Health Plan **Blue Cross/Blue Shield Eligibility - A member may continue on the City’s health insurance plan upon retirement if the member is drawing a pension for Normal Retirement, Early Retirement or Disability Retirement. The retiree may continue to cover any qualified dependents that were on the City’s health insurance plan at the time of retirement. If the retiree’s spouse or domestic partner is an active permanent City employee, the member may choose to be covered under the spouse’s or domestic partner’s insurance coverage. When the spouse or domestic partner retires and begins to draw a pension, both individuals will be covered as retirees under the City’s health insurance policy. A member who is a Deferred Retiree (eligible to retire upon termination but chooses to defer the commencement of a pension benefit) may choose to remain on the City’s health insurance plan and pay the unreduced health insurance premium until the commencement of a pension benefit. A Deferred Retiree may also choose to terminate health insurance coverage and be allowed to rejoin the City’s health insurance plan upon commencement of a pension benefit and pay the reduced health insurance premium if they are able to prove they maintained continuous health insurance coverage during the period between terminating from the City’s health insurance plan and when they rejoined the City’s health insurance plan. A Long-Term Vested Participant (10 years or more service time in the City’s pension plan, but not yet eligible to receive a pension benefit) may choose to remain on the City’s health insurance plan at their expense. The Participant will be required to pay the unreduced health insurance premium cost until the Participant retires. If the Participant chooses to terminate the City’s health insurance coverage, the Participant will no longer be eligible to participate in the OPEB Plan. A surviving spouse of a deceased retiree may continue or join the City’s health insurance plan only if the deceased retiree was enrolled in the City’s health insurance plan at the time of death. The surviving spouse may join the OPEB Plan without being subject to the evidence of insurability requirements. The surviving spouse may cover any qualified dependents. 2. oPeB Plan Investments Due to its small size, there is not a separate investment policy specifically for the assets of the RMI Trust. Chapter 2 of the Municipal Code provides that the RMI Trust invests in instruments similar to those invested in by the City’s Pension Fund. There were no significant changes to the investment of the RMI Trust assets during Fiscal Year 2024. Investments in various index funds are each more than 5% of the RMI Trust’s position. -- 105 of 220 -- 106 ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 City of Tallahassee nOTES TO FInAnCIAL STATEmEnTS note V - other Information (Continued) H. Other Post Employment Benefits (OPEB) (Continued) 3. net oPeB Liability Changes in the Net OPEB Liability - The Plan is presenting the net OPEB liability for the year ended September 30, 2024 based on the September 30, 2023 measurement date as follows (in thousands): Total oPeB Liability Plan Fiduciary net Position net oPeB Liability (a) - (b) Balances at September 30, 2023 $ 73,415 $ 11,041 $ 62,374 Changes for the year: Change in Allocation Percentages (89) (14) (75) Service Cost 1,474 - 1,474 Interest 3,254 - 3,254 Differences between Expected and Actual Experiences 4,419 4,419 Assumption Changes (1,885) - (1,885) Employer Contributions to the Trust Fund - 2,363 (2,363) Employer Contributions not deposited in Trust Fund - 2,860 (2,860) Net Investment Income - 1,662 (1,662) Benefit Payments (4,952) (2,092) (2,860) Benefit Payments not reimbursed by Trust Fund - (2,860) 2,860 Net Changes 2,221 1,919 302 Balances at September 30, 2024 $ 75,636 $ 12,960 $ 62,676 -- 106 of 220 -- ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 107 City of Tallahassee nOTES TO FInAnCIAL STATEmEnTS note V - other Information (Continued) H. Other Post Employment Benefits (OPEB) (Continued) The total OPEB liability and contribution rates were determined by an actuarial valuation as of September 30, 2022. The total OPEB liability was rolled forward one year. The significant assumptions used were as follows: Actuarial Cost Method entry Age normal Normal Inflation 2.50%. Discount Rate 4.73%, the resulting Single Discount Rate based on the expected rate of return on OPEB Plan investments as of September 30, 2023 at 7.25% and the long term municipal bond rate as of September 30, 2023 at 4.63%. Salary Increases 2.95% to 6.40%, including inflation; varies by plan type and years of service. Retirement Age Experience based table of rates that are specific to the plan and type of eligibility condition. Mortality Mortality tables used in the July 1, 2022 actuarial valuation of the Florida Retirement System (FRS). They are based on the results of a statewide experience study covering the period 2013 through 2018. These rates were taken from adjusted Pub-2010 mortality tables publied by SOA with generational mortality improvements using Scale MP-2018. Healthcare Cost Trend Rates Based on the Getzen Model, with trend starting at 5.90% for 2024 (based on actual premium increases), followed by 6.00% for 2025, and then gradually decreasing to an ultimate trend rate of 4.00%. Aging factors to Death Expenses Based on the 2013 SOA Study “Health Care Costs - From Birth to Death” Expenses Investment returns are net of the investment expenses; and, administrative expenses are included in the per capita health costs. Notes The following assumption changes have been reflected in the schedule of Changes in the Total OPEB Liability for the measurement period ending September 30, 2023: The Single Discount Rate was changed from 4.50% to 4.73%. There were no benefit changes during the year. Sensitivity of Net OPEB Liability to changes in the Single Discount Rate –The following presents the plan’s net OPEB liability, calculated using a Single Discount Rate of 4.73%, as well as what the plan’s net OPEB liability would be if it were calculated using a Single Discount Rate that is one percent lower or one percent higher (in thousands): 1% Decrease 3.73% Current Single Discount Rate Assumption 4.73% 1% Increase 5.73% Primary Government $ 70,750 $ 62,572 $ 55,646 Primary Government - Component Unit 118 104 92 Total $ 70,868 $ 62,676 $ 55,738 -- 107 of 220 -- 108 ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 City of Tallahassee nOTES TO FInAnCIAL STATEmEnTS note V - other Information (Continued) H. Other Post Employment Benefits (OPEB) (Continued) Sensitivity of the net OPEB liability to changes in the healthcare cost trend rates - The following presents the plan’s net OPEB liability, calculated using the assumed trend rates as well as what the plan’s net OPEB liability would be if it were calculated using a trend rate that is one percent lower or one percent higher (in thousands): 1% Decrease Current Healthcare Cost Trend Rate Assumption 1% Increase Primary Government $ 57,197 $ 62,572 $ 68,970 Primary Government - Component Unit 95 104 115 Total $ 57,292 $ 62,676 $ 69,085 OPEB Expense and Deferred Outflows/(Inflows) of Resources Related to OPEB – In accordance with GASB 75, changes in the net OPEB liability are recognized as OPEB expense in the current measurement period, except as shown below. For each of the following, a portion is recognized in OPEB expense in the current measurement period, and the balance is amortized as deferred outflows or inflows of resources using a systematic and rational method over a closed period, as defined below: ● Differences between expected and actual experience with regard to economic and demographic factors which are amortized over the average expected remaining service life of all employees that are provided with benefits through the OPEB plan, both active and inactive. ● Changes of assumptions or other inputs which are amortized over the average expected remaining service life of all employees that are provided with benefits through the OPEB plan, both active and inactive. ● Changes in proportion and differences between contributions and proportionate share of contributions which are amortized over the average expected remaining service life of all employees that are provided with benefits through the OPEB plan, both active and inactive. ● Differences between expected and actual earnings on OPEB plan investments are amortized over five years. Based on a valuation date of September 30, 2022 and a measurement date of September 30, 2023, the City recognized OPEB expenses of ($14,629) for the year ended September 30, 2024. At September 30, 2024, the City reported deferred outflows of resources and deferred inflows of resources related to the OPEB plan from the following sources (in thousands): Deferred outflows of Resources Deferred Inflows of Resources net Deferred outflows of Resources Differences between expected and actual experience $ 3,830 $ (4,062) $ (232) Assumption Changes 6,798 (19,543) (12,745) Net difference between projected and actual earnings on pension plan investments 1,907 (1,618) 289 Change in Net OPEB liability due to Change in Cost-Sharing Allocation Percentage 10 (290) (280) Contributions after measurement date 4,588 - 4,588 $ 17,133 $ (25,513) $ (8,380) -- 108 of 220 -- ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 109 City of Tallahassee nOTES TO FInAnCIAL STATEmEnTS note V - other Information (Continued) H. Other Post Employment Benefits (OPEB) (Continued) Deferred outflows of resources related to the plan of $4,588,000, resulting from City contributions to the plan paid subsequent to the measurement date and prior to the City’s fiscal year, will be recognized as a reduction of the net OPEB liability in the fiscal year ended September 30, 2024. Other amounts reported as OPEB related deferred outflows and inflows of resources will be recognized in future OPEB expense, as follows: Year ending September 30, net Amount 2025 $ (2,908) 2026 (2,222) 2027 (3,342) 2028 (2,097) 2029 (2,137) Thereafter (262) Total $ (12,968) 4. Funding Policy The contribution requirements of OPEB Plan members and the City are established and may be amended by the City Commission. These contributions are neither mandated nor guaranteed. The City has retained the right to unilaterally modify its payment for retiree health care benefits. Effective October 1, 2010, the City implemented a “cap” on employer contributions for retirees. Accordingly, the City’s subsidy was frozen at the 2010 levels, and retirees must absorb all future premium rate increases. 5. Statement of Plan net Position as of September 30, 2024 oPeB Trust Assets Cash and Cash Equivalents $ 1,163 Receivables Accrued Interest 6 Investments, at Fair Value Domestic Equities 16,409 Securities Lending Collateral 190 Total Assets $ 17,768 Liabilities and net Position Liabilities Obligations Under Securities Lending $ 190 Total Liabilities 190 net Position Net Position Restricted for OPEB 17,578 Total Liabilities and Net Position $ 17,768 -- 109 of 220 -- 110 ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 City of Tallahassee nOTES TO FInAnCIAL STATEmEnTS note V - other Information (Continued) H. Other Post Employment Benefits (OPEB) (Continued) 6. Statement of Changes in Plan net Position for the Year ended September 30, 2024 oPeB Trust Additions Contributions Employer $ 2,538 Total Contributions 2,538 Investment Loss From Investment Activities Gain (Loss) on Sale of Investments 128 Change in Fair Value of Investments 3,463 Interest Income 361 Total Investment Loss 3,952 Less Investment Expenses Investment Management Fees 8 Net Income (Loss) from Investment Activities 3,944 Total Net Income (Loss) from Investment Activities 3,944 Total Additions 6,482 Deductions Benefits 2,064 Change in Net Position 4,418 Net Position - October 1 13,160 Net Position - September 30 $ 17,578 I. Derivative Instruments The contracts are recorded at fair value on the Statement of Net Assets as they have been determined to qualify as derivative instruments under GASB Statement No. 53, “Accounting and Financial Reporting for Derivative Instruments”. The fair value balances and notional amounts of derivative instruments, all of which are accounted for within the City’s business-type activities, as of September 30, 2024, and the changes in fair value of such derivative instruments for the year then ended, are as follows (amounts in thousands): Changes in Fair Value Fair Value at September 30, 2024 Classification Amount Classification Amount notional Cash Flow Hedges: Commodity Forward- Natural Gas Deferred Outflows of Resources $ 9,142 Derivative Instrument $ (9,142) 17,217,840 MMBTUs The fair values of the forward contracts are estimated based upon the nominal value of their estimated cash flows. For FY 2025 the City has hedged various volumes Over the Counter (OTC) with BP Energy Company and Conoco Phillips Company. Counterparty S&P credit ratings are as follows: BP Energy Company: A-, and Conoco Phillips Company: A-, as of September 30, 2024. -- 110 of 220 -- ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 111 City of Tallahassee nOTES TO FInAnCIAL STATEmEnTS note V - other Information (Continued) The following table displays the objectives and terms of the City’s derivative instruments outstanding as of September 30, 2024. Type objective effective Maturity Date Terms Commodity Forward Contract Stabilize cash flows due to market price volatility related to expected purchases of natural gas. Various Various: November 2024 - September 2025 Pay various prices per MMBTU; settlement based on the Henry Hub index price on the expiration date for natural gas contracts. J. Related Party Transactions Related party transactions during the year ended September 30, 2024 included the following: The City paid the following contributions to the Consolidated Dispatch Agency (CDA): 1. $ 7,700,763 for operations. 2. $ 359,144 for Fire/EMS revenue. The City charges fees for administrative services to the CDA, Blueprint, and the Capital Region Transportation Planning Agency (CRTPA). For the year ended September 30, 2024, the City charged fees of $1,668,835, $341,046, and $74,296, respectively. As of September 30, 2024, the City was owed $142,962 by the CDA, $7,430,926 by Blueprint, $2,200 by CRTPA, and $750 from the Downtown Improvement Authority. The City in turn owed the CDA $1,331,727 and Blueprint $0. The City and Blueprint Intergovernmental Agency entered an interlocal agreement whereby Blueprint would allocate a portion of their sales tax collections to the City for specific uses including parks and recreation operating costs, Starmetro enhancements, water quality, sidewalks, and airport growth and development. Blueprint paid the City $6,192,500 under this agreement in the fiscal year ended September 30, 2024. In addition, Blueprint Intergovernmental Agency paid the City $1,287,346 for the South Side Transit Center and $29,500 for the FAMU Way Playground. -- 111 of 220 -- 112 ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 This Page Intentionally Left Blank -- 112 of 220 -- ANNUAL FINANCIAL REPORT CITY OF ATLANTIS ANNUAL FINANCIAL REPORT RADFORD UNIVERSITY Annual Comprehensive Financial Report CITY OF TALLAHASSEE, FLORIDA Required Supplementary Information This subsection contains the following: ● Budgetary Comparison Schedule - General Fund ● Note to Required Supplementary Information - Budgetary Comparison Schedule - General Fund ● Schedule of Changes in the Employer’s Net Pension Liability and Related Ratios - General Employees ● Schedule of Net Pension Liability by Employer - General Employees ● Schedule of Contributions - General Employees ● Notes to Schedule of Contributions - General Employees ● Schedule of Changes in the Employer’s Net Pension Liability and Related Ratios - Police Officers ● Schedule of Contributions - Police Officers ● Notes to Schedule of Contributions - Police Officers ● Schedule of Changes in the Employer’s Net Pension Liability and Related Ratios - Firefighters ● Schedule of Contributions - Firefighters ● Notes to Schedule of Contributions - Firefighters ● Schedule of Investment Returns - Pension Plans ● Schedule of Changes in the Net OPEB Liability and Related Ratios ● Schedule of the Net OPEB Liability ● Notes to Schedule of Net OPEB ● Liability Schedule of Contributions - OPEB ● Notes to Schedule of Contributions - OPEB ● Schedule of Investment Returns - OPEB -- 113 of 220 -- 114 ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 City of Tallahassee REquIRED SuppLEmEnTARY InFORmATIOn See Independent Auditors’ Report Required Supplementary Information Budgetary Comparison Schedule General Fund For the Fiscal Year ended September 30, 2024 (in thousands) (Unaudited) Actual Amounts (Budgetary Basis) Variance with Final Budget Positive (negative) Budgeted Amounts original Final Budgetary Fund Balance - october 1 $ 236 $ 236 $ 236 $ - Resources Taxes 91,128 91,128 95,252 4,124 Licenses and Permits 2,215 2,215 2,741 526 Intergovernmental Revenues 30,668 30,668 24,678 (5,990) Charges for Services 11,232 11,232 13,585 2,353 Fines and Forfeitures 628 628 624 (4) Interest Earned 309 309 (379) (688) Miscellaneous 11,306 11,306 10,598 (708) Transfers from Other Funds 53,970 53,970 54,197 227 Amounts Available for Appropriations 201,692 201,692 201,532 (160) Charges to Appropriations General Government 28,492 28,044 27,143 901 Public Safety 77,023 72,704 65,971 6,733 Transportation 19,105 19,035 21,249 (2,214) Human Services 9,613 8,678 9,324 (646) Economic Development (215) 114 115 (1) Physical Environment 3,960 3,960 3,471 489 Culture and Recreation 25,433 25,409 26,422 (1,013) Transfers to Other Funds 38,281 43,748 47,658 (3,910) Total Charges to Appropriations 201,692 201,692 201,353 339 Budgetary Fund Balance - September 30 $ - $ - $ 179 $ 179 -- 114 of 220 -- ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 115 City of Tallahassee REquIRED SuppLEmEnTARY InFORmATIOn See Independent Auditors’ Report note to Required Supplementary Information General Fund For the Fiscal Year ended September 30, 2024 (in thousands) (Unaudited) Explanation of Differences between Budgetary Inflows and Outflows and GAAP Revenues/Transfers In and Expenditures/Transfers Out Inflows of Resources Actual amounts (budgetary basis) available for appropriation from the budgetary comparison schedule. $ 201,532 Differences - budget to GAAP The fund balance at the beginning of the year is a budgetary resource but is not a current year revenue for financial reporting purposes. (236) The revenues of the City’s Deficiency Reserve and Scholarship Reserve are current year revenues for reporting purposes but are not considered budgetary inflows. 5,902 Current year nonbudgeted transfer is treated as revenue for financial reporting purposes but not as a budgetary inflow. 758 Miscellaneous items treated as budgetary inflows but not as revenues for financial reporting purposes. (4,956) Miscellaneous items treated as revenues for financial reporting purposes but not as budgetary inflows 9 Total Revenues and Other Financing Sources as reported on the statement of revenues, expenditures, and changes in fund balances. $ 203,009 outflows of Resources Actual amounts (budgetary basis) total charges to appropriations from the budgetary comparison schedule. $ 201,353 Difference - budget to GAAP The expenditures of the City’s Deficiency Reserve and Scholarship reserve are current year expenditures for reporting purposes but are not considered budgetary outflows. 2,513 Current year nonbudgeted transfer is treated as expense for financial reporting purposes but not as a budgetary outflow. 1,043 Miscellaneous items treated as budgetary outflows but not as expenditures for financial reporting purposes. (5,289) Miscellaneous items treated as expenditures for financial reporting purposes but not as budgetary outflows. 374 Total Expenditures and Other Financing Uses as reported on the statement of revenues, expenditures, and changes in fund balances. $ 199,994 -- 115 of 220 -- 116 ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 City of Tallahassee Re QUIR eD SUPPL eMen TARY In FoRMATI on City of Tallahassee REqu IRED Supp LEmEnTARY In FOR mATIO n See Independent Auditors’ Report Schedule of Changes in the employer’s net Pension Liability and Related Ratios - General employees Pension Plan (Based on Measurement Periods ending September 30, 2024) For the Fiscal Year ended September 30 (in thousands) (Unaudited) 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015 Total Pension Liability Service Cost $ 20,322 $ 18,650 $ 17,494 $ 17,607 $ 18,012 $ 16,845 $ 15,916 $ 15,008 $ 14,964 $ 14,592 Interest 107,667 104,781 100,846 99,733 96,509 92,484 86,053 78,568 74,426 71,570 Benefit Changes - - - - (4,776) - 118 - - - Difference between actual & expected experience - 11,463 - (1,448) 9,403 43,132 11,976 17,064 - (24,196) Assumption Changes - 25,685 - (10,193) - 19,989 14,262 54,077 - - Benefit Payments (82,903) (78,909) (75,207) (71,369) (66,804) (62,578) (58,587) (54,634) (50,887) (47,928) Refunds (937) (632) (814) (637) (578) (485) (262) (269) (312) (241) Net Change in Total Pension Liability 44,149 81,038 42,319 33,693 51,766 109,387 69,476 109,814 38,191 13,797 Total Pension Liability - Beginning 1,506,659 1,425,621 1,383,302 1,349,609 1,297,843 1,188,456 1,118,980 1,009,166 970,975 957,178 Total Pension Liability - Ending (a) $ 1,550,808 $ 1,506,659 $ 1,425,621 $ 1,383,302 $ 1,349,609 $ 1,297,843 $ 1,188,456 $ 1,118,980 $ 1,009,166 $ 970,975 Plan Fiduciary Net Position Contributions - Employer $ 26,938 $ 27,127 $ 27,127 $ 27,858 $ 26,693 $ 21,927 $ 18,801 $ 14,486 $ 14,591 $ 16,537 Contributions - Other - - - 99 3 7 13 356 - 23 Contributions - Member 7,227 6,914 6,680 6,212 6,171 6,119 5,560 5,160 4,523 4,719 Net Investment Income 211,729 85,307 (75,650) 308,700 75,990 47,306 94,722 127,148 85,979 9,640 Benefits Payments (82,903) (78,909) (75,207) (71,369) (66,804) (62,578) (58,587) (54,634) (50,887) (47,928) Refunds (937) (632) (814) (637) (578) (485) (262) (269) (312) (241) Administrative Expense (814) (741) (633) (684) (606) (1,112) (493) (1,214) (705) (637) Other - Reallocation of Prior Years’ Investment Earnings - - - - 8,158 - - - - - Net Change in Plan Fiduciary Net Position 161,240 39,066 (118,497) 270,179 49,027 11,184 59,754 91,033 53,189 (17,887) Plan Fiduciary Net Position - Beginning 1,385,517 1,346,451 1,464,948 1,194,769 1,145,742 1,134,558 1,074,804 983,771 930,582 948,469 Plan Fiduciary Net Position - Ending (b) $ 1,546,757 $ 1,385,517 $ 1,346,451 $ 1,464,948 $ 1,194,769 $ 1,145,742 $ 1,134,558 $ 1,074,804 $ 983,771 $ 930,582 Net Pension Liability/(Asset) - Ending (a) - (b) $ 4,051 $ 121,142 $ 79,170 $ (81,646) $ 154,840 $ 152,101 $ 53,898 $ 44,176 $ 25,395 $ 40,393 Plan Fiduciary Net Position as a Percentage of Total Pension Liability 99.74% 91.96% 94.45% 105.90% 88.53% 88.28% 95.46% 96.05% 97.48% 95.84% Covered Payroll $ 139,500 $ 132,953 $ 126,769 $ 111,180 $ 112,334 $ 106,445 $ 100,986 $ 110,835 $ 111,638 $ 108,866 Net Pension Liability/(Asset) as a Percentage of Covered Payroll 2.90% 91.12% 62.45% (73.44%) 137.84% 142.89% 53.37% 39.86% 22.75% 37.10% -- 116 of 220 -- ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 117 City of Tallahassee REquIRED SuppLEmEnTARY InFORmATIOn See Independent Auditors’ Report Schedule of net Pension Liability by employer - General employees (Based on Measurement Period ending September 30, 2024) (in thousands) (Unaudited) Fiscal year ending September 30, 2024 BPIA CRTPA CDA City of Tallahassee General employees Total Total Pension Liability - Beginning $ 24,659 $ 5,734 $ 48,616 $ 1,427,650 $ 1,506,659 Total Pension Liability - Ending (a) $ 28,225 $ 4,497 $ 57,845 $ 1,460,241 $ 1,550,808 Plan Fiduciary Net Position - Beginning $ 22,676 $ 5,273 $ 44,707 $ 1,312,861 $ 1,385,517 Plan Fiduciary Net Position - Ending (b) $ 28,151 $ 4,486 $ 57,694 $ 1,456,426 $ 1,546,757 Net Pension Liability - Ending (a) - (b) $ 74 $ 11 $ 151 $ 3,815 $ 4,051 Plan Fiduciary Net Position as a Percentage of Total Pension Liability 99.74% 99.76% 99.74% 99.74% 99.74% Covered Payroll $ 2,530 $ 404 $ 5,208 $ 131,358 $ 139,500 Net Pension Asset as a percentage of Covered Payroll 2.92% 2.72% 2.90% 2.90% 2.90% Allocation Determination* Allocation Percentage Prior Year 1.64% 0.38% 3.22% 94.76% 100.00% Allocation Percentage Current Year 1.82% 0.29% 3.73% 94.16% 100.00% * The Total Pension Liability, the Plan Fiduciary Net Position, and the Net Pension Liability are allocated by department based on the covered payroll for each department. -- 117 of 220 -- 118 ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 City of Tallahassee REquIRED SuppLEmEnTARY InFORmATIOn See Independent Auditors’ Report Schedule of Contributions - General employees Last Ten Fiscal Years (in thousands) (Unaudited) Fiscal Year ending September 30, Actuarially Determined Contribution Actual Contribution* Contribution Deficiency (excess) Covered Payroll Actual Contribution as a % of Covered Payroll 2015 $ 16,537 $ 16,537 $ - $ 108,866 15.19% 2016 14,591 14,591 - 111,638 13.07 2017 14,486 14,486 - 110,835 13.07 2018 18,713 18,801 (88) 100,986 18.62 2019 21,927 21,927 - 106,445 20.60 2020 26,693 26,693 - 112,334 23.76 2021 27,858 27,858 - 111,180 25.06 2022 27,127 27,127 - 126,769 21.40 2023 27,127 27,127 - 132,953 20.40 2024 26,938 26,938 - 139,500 19.31 *The actual contributions are the same as contractually required contributions for participating cost-sharing employers. notes to Schedule of Contributions - General employees Valuation Date: October 1, 2022 Measurement Date: September 30, 2024 Notes: Actuarially determined contribution rates are calculated as of October 1, 2022 for the fiscal year ended September 30, 2024. Methods and Assumption Used to Determine Contribution Rates: Actuarial Cost Method Entry Age Normal Amortization Method Level Percent of Pay (with 2.21% payroll growth assumption), Closed Remaining Amortization Period 26 years Asset Valuation Method 20% of the difference between expected actuarial value (based on assumed return) and market value is recognized each year with 20% corridor around market value. Inflation 2.50% Salary Increases A range of 2.95% to 5.00%, depending on completed years of service, including inflation. Investment Rate of Return 7.25% Retirement Age Experience-based table of rates that are specific to the type of eligibility condition. Mortality The mortality tables used are the same as those used in the July 1, 2022 Pension Actuarial Valuation of the Florida Retirement System (FRS) for Regular (other than K-12 School Instructional Personnel) members. These tables are based on the Pub-2010 mortality tables with mortality improvements projected for healthy lives to all future years after 2010 using Scale MP-2018. other Information: Notes See Discussion of Valuation Results in the October 1, 2022 Actuarial Valuation Report dated January 31, 2023. -- 118 of 220 -- ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 119 City of Tallahassee Re QUIR eD SUPPL eMen TARY In FoRMATI on City of Tallahassee REqu IRED Supp LEmEnTARY In FOR mATIO n See Independent Auditors’ Report Schedule of Changes in employer’s net Pension Liability and Related Ratios Police Officers (Based on Measurement Period ending September 30, 2024) for the Fiscal Year ended September 30 (in thousands) (Unaudited) 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015 Total Pension Liability Service Cost $ 8,688 $ 7,338 $ 7,304 $ 7,203 $ 7,178 $ 6,858 $ 6,777 $ 6,031 $ 5,573 $ 5,570 Interest 33,696 32,591 31,398 31,491 30,192 28,820 27,583 25,451 23,784 22,775 Benefit Changes - - - 509 - - (5,904) - - - Difference between actual & expected experience - 872 - 737 1,907 6,042 3,283 8,041 - 1,263 Assumption Changes - 8,179 - (12,726) - 4,893 4,776 11,610 - - Benefit Payments (25,772) (24,123) (22,478) (21,347) (19,873) (18,729) (17,606) (16,699) (15,737) (14,684) Refunds (97) (210) (165) (323) (90) (210) (184) (105) (156) (64) Net Change in Total Pension Liability 16,515 24,647 16,059 5,544 19,314 27,674 18,725 34,329 13,464 14,860 Total Pension Liability - Beginning 469,023 444,376 428,317 422,773 403,459 375,785 357,060 322,731 309,267 294,407 Total Pension Liability - Ending (a) $ 485,538 $ 469,023 $ 444,376 $ 428,317 $ 422,773 $ 403,459 $ 375,785 $ 357,060 $ 322,731 $ 309,267 Plan Fiduciary Net Position Contributions - Employer $ 9,647 $ 9,452 $ 9,452 $ 9,456 $ 8,905 $ 8,304 $ 8,326 $ 6,996 $ 6,585 $ 5,940 Contributions - Non-Employer Contributing Entity - - - 28 1 2 4 109 - 6 Contributions - Member 3,328 2,996 3,092 3,324 3,369 3,187 3,451 3,483 3,230 3,104 Net Investment Income 61,492 24,389 (21,609) 88,199 21,789 15,073 29,685 39,016 25,772 2,843 Benefits Payments (25,772) (24,123) (22,478) (21,347) (19,873) (18,729) (17,606) (16,699) (15,737) (14,684) Refunds (97) (210) (165) (323) (90) (210) (184) (105) (156) (64) Administrative Expense (233) (213) (181) (196) (173) (500) (153) (369) (200) (187) Other - Reallocation of Prior Years’ Investment Earnings - - - - (13,119) - - - - - Net Change in Plan Fiduciary Net Position 48,365 12,291 (31,889) 79,141 809 7,127 23,523 32,431 19,494 (3,042) Plan Fiduciary Net Position - Beginning 403,207 390,916 422,805 343,664 342,855 335,728 312,205 279,774 260,280 263,322 Plan Fiduciary Net Position - Ending (b) $ 451,572 $ 403,207 $ 390,916 $ 422,805 $ 343,664 $ 342,855 $ 335,728 $ 312,205 $ 279,774 $ 260,280 Net Pension Liability - Ending (a) - (b) $ 33,966 $ 65,816 $ 53,460 $ 5,512 $ 79,109 $ 60,604 $ 40,057 $ 44,855 $ 42,957 $ 48,987 Plan Fiduciary Net Position as a Percentage of Total Pension Liability 93.00% 85.97% 87.97% 98.71% 81.29% 84.98% 89.34% 87.44% 86.69% 84.16% Covered Payroll $ 33,588 $ 29,427 $ 29,509 $ 27,424 $ 27,031 $ 26,071 $ 26,235 $ 27,170 $ 25,573 $ 25,559 Net Pension Liability as a Percentage of Covered Payroll 101.13% 223.66% 181.17% 20.10% 292.66% 232.46% 152.69% 165.09% 167.98% 191.66% -- 119 of 220 -- 120 ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 City of Tallahassee REquIRED SuppLEmEnTARY InFORmATIOn See Independent Auditors’ Report Schedule of Contributions - Police Officers (in thousands) (Unaudited) Fiscal Year ending September 30, Actuarially Determined Contribution Actual Contribution Contribution Deficiency (excess) Covered Payroll Actual Contribution as a % of Covered Payroll 2015 $ 5,940 $ 5,940 $ - $ 25,559 23.24% 2016 6,585 6,585 - 25,573 25.75 2017 6,996 6,996 - 27,170 25.75 2018 8,238 8,326 (88) 26,235 31.74 2019 8,304 8,304 - 26,071 31.85 2020 8,905 8,905 - 27,031 32.94 2021 9,456 9,456 - 27,424 34.48 2022 9,452 9,452 - 29,509 32.03 2023 9,452 9,452 - 29,427 32.12 2024 9,647 9,647 - 33,588 28.72 notes to Schedule of Contributions - Police officers Valuation Date: October 1, 2022 Measurement Date: September 30, 2024 Notes: Actuarially determined contribution rates are calculated as of October 1, 2022 for the fiscal year ended September 30, 2024. Methods and Assumption Used to Determine Contribution Rates: Actuarial Cost Method Entry Age Normal Amortization Method Level Percent of Pay (with 1.01% payroll growth assumption), Closed Remaining Amortization Period 26 years Asset Valuation Method 20% of the difference between expected actuarial value (based on assumed return) and market value is recognized each year with 20% corridor around market value. Inflation 2.50% Salary Increases A range of 4.50% to 6.40%, depending on completed years of service, including inflation. Investment Rate of Return 7.25% Retirement Age Experience-based table of rates that are specific to the type of eligibility condition. Mortality The mortality tables used are the same as those used in the July 1, 2022 Pension Actuarial Valuation of the Florida Retirement System (FRS) for Special Risk members. These tables are based on the Pub-2010 mortality tables with mortality improvements projected for healthy lives to all future years after 2010 using Scale MP-2018. other Information: Notes See Discussion of Valuation Results in the October 1, 2022 Actuarial Valuation Report dated January 31, 2023. -- 120 of 220 -- ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 121 City of Tallahassee Re QUIR eD SUPPL eMen TARY In FoRMATI on City of Tallahassee REqu IRED Supp LEmEnTARY In FOR mATIO n See Independent Auditors’ Report Schedule of Changes in Employer’s Net Pension Liability and Related Ratios - Firefighters (Based on Measurement Period ending September 30, 2024) for the Fiscal Year ended September 30 (in thousands) (Unaudited) 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015 Total Pension Liability Service Cost $ 5,086 $ 4,995 $ 4,764 $ 4,598 $ 4,636 $ 4,310 $ 4,000 $ 3,863 $ 3,564 $ 3,288 Interest 22,956 22,354 21,651 21,955 21,357 20,412 19,312 17,968 16,774 16,205 Benefit Changes (11) - - (9) - - (1,850) - - - Difference between actual & expected experience - 615 - (1,513) 2,063 4,784 3,136 8,020 - 2,783 Assumption Changes - 5,458 - (9,691) - 4,930 4,590 9,978 - - Benefit Payments (18,151) (17,901) (17,471) (16,606) (15,960) (15,275) (14,772) (13,669) (12,701) (12,074) Refunds (538) (95) (53) (213) (155) (339) (50) (65) (65) (5) Net Change in Total Pension Liability 9,342 15,426 8,891 (1,479) 11,941 18,822 14,366 26,095 7,572 10,197 Total Pension Liability - Beginning 320,898 305,472 296,581 298,060 286,119 267,297 252,931 226,836 219,264 209,067 Total Pension Liability - Ending (a) $ 330,240 $ 320,898 $ 305,472 $ 296,581 $ 298,060 $ 286,119 $ 267,297 $ 252,931 $ 226,836 $ 219,264 Plan Fiduciary Net Position Contributions - Employer $ 6,579 $ 6,658 $ 6,658 $ 7,084 $ 6,443 $ 5,735 $ 5,001 $ 4,970 $ 4,671 $ 4,104 Contributions - Non-Employer Contributing Entity - - - 19 1 1 3 66 - 4 Contributions - Member 3,535 3,454 3,467 3,235 3,384 2,999 2,862 3,270 3,092 2,774 Net Investment Income 41,154 16,477 (14,602) 59,591 14,654 8,831 17,675 23,810 15,933 1,782 Benefits Payments (18,151) (17,901) (17,471) (16,606) (15,960) (15,275) (14,772) (13,669) (12,701) (12,074) Refunds (538) (95) (53) (213) (155) (339) (50) (65) (65) (5) Administrative Expense (156) (143) (118) (132) (117) (310) (92) (227) (124) (117) Other - Reallocation of Prior Years’ Investment Earnings - - - - 4,961 - - - - - Net Change in Plan Fiduciary Net Position 32,423 8,450 (22,119) 52,978 13,211 1,642 10,627 18,155 10,806 (3,532) Plan Fiduciary Net Position - Beginning 270,046 261,596 283,715 230,737 217,526 215,884 205,257 187,102 176,296 179,828 Plan Fiduciary Net Position - Ending (b) $ 302,469 $ 270,046 $ 261,596 $ 283,715 $ 230,737 $ 217,526 $ 215,884 $ 205,257 $ 187,102 $ 176,296 Net Pension Liability - Ending (a) - (b) $ 27,771 $ 50,852 $ 43,876 $ 12,866 $ 67,323 $ 68,593 $ 51,413 $ 47,674 $ 39,734 $ 42,968 Plan Fiduciary Net Position as a Percentage of Total Pension Liability 91.59% 84.15% 85.64% 95.66% 77.41% 76.03% 80.77% 81.15% 82.48% 80.40% Covered Payroll $ 18,663 $ 18,990 $ 18,264 $ 16,427 $ 15,806 $ 15,545 $ 15,097 $ 18,774 $ 17,645 $ 16,280 Net Pension Liability as a Percentage of Covered Payroll 148.80% 267.78% 240.23% 78.32% 425.93% 441.25% 340.55% 253.94% 225.19% 263.93% -- 121 of 220 -- 122 ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 City of Tallahassee REquIRED SuppLEmEnTARY InFORmATIOn See Independent Auditors’ Report Schedule of Contributions - Firefighters (in thousands) (Unaudited) Fiscal Year ending September 30, Actuarially Determined Contribution Actual Contribution Contribution Deficiency (excess) Covered Payroll Actual Contribution as a % of Covered Payroll 2015 $ 4,104 $ 4,104 $ - $ 16,280 25.21% 2016 4,671 4,671 - 17,645 26.47 2017 4,970 4,970 - 18,774 26.47 2018 4,700 5,001 (301) 15,097 33.13 2019 5,735 5,735 - 15,545 36.89 2020 6,443 6,443 - 15,806 40.76 2021 7,084 7,084 - 16,427 43.12 2022 6,658 6,658 - 18,264 36.45 2023 6,658 6,658 - 18,990 35.06 2024 6,579 6,579 - 18,663 35.25 notes to Schedule of Contributions - Firefighters Valuation Date: October 1, 2022 Measurement Date: September 30, 2024 Notes: Actuarially determined contribution rates are calculated as of October 1, 2022, for the fiscal year ended September 30, 2024. Methods and Assumption Used to Determine Contribution Rates: Actuarial Cost Method Entry Age Normal Amortization Method Level Percent of Pay (with 2.93% payroll growth assumption), Closed Remaining Amortization Period 26 years Asset Valuation Method 20% of the difference between expected actuarial value (based on assumed return) and market value is recognized each year with 20% corridor around market value. Inflation 2.50% Salary Increases A range of 4.40% to 5.75%, depending on completed years of service, including inflation. Investment Rate of Return 7.25% Retirement Age Experience-based table of rates that are specific to the type of eligibility condition. Mortality The mortality tables used are the same as those used in the July 1, 2022 Pension Actuarial Valuation of the Florida Retirement System (FRS) for Special Risk members. These tables are based on the Pub-2010 mortality tables with mortality improvements projected for healthy lives to all future years after 2010 using Scale MP-2018. other Information: Notes See Discussion of Valuation Results in the October 1, 2022 Actuarial Valuation Report dated January 31, 2023. -- 122 of 220 -- ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 123 City of Tallahassee REquIRED SuppLEmEnTARY InFORmATIOn See Independent Auditors’ Report Schedule of Investment Returns - Pension Plans for the Fiscal Year ended September 30 (Unaudited) Fiscal Year ending September 30, Annual Return* 2015 0.29% 2016 9.04 2017 13.12 2018 8.58 2019 3.73 2020 5.80 2021 25.50 2022 (8.40) 2023 6.90 2024 15.40 * Estimated Annual money-weighted rate of return, net of investment expenses. -- 123 of 220 -- 124 ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 City of Tallahassee REquIRED SuppLEmEnTARY InFORmATIOn See Independent Auditors’ Report Schedule of Changes in net oPeB Liability and Related Ratio for the Fiscal Year ended September 30 (in thousands) (Unaudited) 2024 2023 2022 2021 2020 2019 2018 2017 Total OPEB Liability Service cost $ 1,514 $ 1,518 $ 2,140 $ 2,285 $ 2,288 $ 2,064 $ 2,375 $ 2,468 Interest on the total OPEB liability 3,410 3,306 2,149 2,618 2,942 3,545 3,334 3,041 Charge of benefit terms - - - 30 - - - - Differences between expected and actual experience 4,481 - 2,070 (5,297) (800) (74) - - Change of assumptions 5,672 (1,797) (18,597) (9,702) (59) 12,851 (3,480) (5,015) Benefit payments (4,659) (5,028) (4,448) (4,153) (4,366) (4,635) (4,851) (4,412) Net change in total OPEB liability 10,418 (2,001) (16,686) (14,219) 5 13,751 (2,622) (3,918) Total OPEB liability - beginning 72,454 74,455 91,141 105,360 11,129 (2,622) - 98,144 Total OPEB liability - ending (a) $ 82,872 $ 72,454 $ 74,455 $ 91,141 $ 11,134 $ 11,129 $ (2,622) $ 94,226 Plan Fiduciary Net Pension Employer Contributions to the OPEB Trust Fund $ 2,539 $ 2,399 $ 2,294 $ 2,272 $ 2,033 $ 2,031 $ 2,017 $ 2,015 Employer Contributions not deposited in OPEB Trust Fund 2,595 2,904 2,305 2,037 2,216 (2,439) 2,673 - OPEB plan net investment income 3,943 1,688 (2,235) 2,798 1,364 385 1,447 1,273 Benefit payments (2,064) (2,124) (2,143) (2,116) (2,150) (2,196) (2,177) (2,170) Benefit payments not reimbursed by the OPEB Trust Fund (2,595) (2,904) (2,305) (2,037) (2,216) 2,439 (2,673) - Other (Adjustment to prior year) - - - - - - 1 - Net change in plan fiduciary net position 4,418 1,963 (2,084) 2,954 1,247 220 1,288 1,118 Plan fiduciary net position - beginning 13,160 11,197 13,281 10,327 9,080 8,862 - 6,456 Plan fiduciary net position - ending (b) $ 17,578 $ 13,160 $ 11,197 $ 13,281 $ 10,327 $ 9,082 $ 1,288 $ 7,574 Net OPEB liability - ending (a) - (b) $ 65,294 $ 59,294 $ 63,258 $ 77,860 $ 807 $ 2,047 $ (3,910) $ 86,652 Plan fiduciary net position as a % of the total OPEB liability 21.00% 18.00% 15.00% 15.00% 93.00% 82.00% (49.00%) 8.00% Covered-Employee payroll $ 186,543 $ 177,080 $ 170,403 $ 151,408 $ 151,273 $ 151,093 $ 153,725 $ 149,247 Net OPEB liability as a % of covered- employee payroll 35.00% 33.00% 37.00% 51.00% 1.00% 1.00% (3.00%) 58.00% Note: Covered-Employee Payrolls presented above are estimates based on the data submitted for valuation purposes. GASB Statement 75 defined Covered-Employee payroll as the payroll of employees that are provided with OPEB through the OPEB plan, including employees terminating during the measurement period. -- 124 of 220 -- ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 125 City of Tallahassee REquIRED SuppLEmEnTARY InFORmATIOn See Independent Auditors’ Report Schedule of net oPeB Liability (in thousands) (Unaudited) FY ending September 30, Total oPeB Liability Plan net Position net oPeB Liability Plan net Position as a % of Total oPeB Liability Covered- employee Payroll net oPeB Liability as a % of Covered employee Payroll 2017 $ 94,226 $ 7,574 $ 86,652 $ 8.04 $ 149,247 58.06% 2018 91,604 8,860 82,744 9.67 153,725 53.83 2019 105,355 9,080 96,275 8.62 151,093 63.72 2020 105,360 10,327 95,033 9.80 151,273 62.82 2021 91,141 13,281 77,860 14.57 151,408 51.42 2022 74,455 11,197 63,258 15.04 170,403 37.12 2023 72,454 13,160 59,294 18.16 177,080 33.48 2024 82,872 17,578 65,294 21.21 186,543 35.00 notes to Schedule of net oPeB Liability Valuation date: September 30, 2023 Measurement Date: September 30, 2024 Roll-Forward Procedures: The total OPEB Liability was rolled forward twelve months from the Valuation Date to the Measurement Date using standard actuarial techniques. Methods and Assumptions Used to Determine net oPeB Liability: Actuarial Cost Method Entry Age Normal Inflation 2.50% Discount Rate 4.03%, the resulting Single Discount Rate based on the expected rate of return on OPEB plan investments as of September 30, 2024 at 7.25% and the long-term municipal bond rate as of September 30, 2024 at 3.81%. Salary Increases 2.95% to 6.40%, including inflation; varies by plan type and years of service. Retirement Age Experience-based table of rates that are specific to the plan and type of eligibility condition. Mortality Mortality tables used in the July 1, 2022 actuarial valuation of the Florida Retirement System (FRS). They are based on the results of a statewide experience study covering the period from 2013 to 2018. These rates were taken from adjusted Pub-2010 mortality tables published by SOA with generational mortality improvements using Scale MP-2018. Healthcare Cost Trend Rates Based on the Getzen Model, with a trend starting at 5.90% for 2024 (based on actual premium increases), followed by 6.00% for 2025, and then gradually decreasing to an ultimate trend rate of 4.00%. Aging factors Based on the 2013 SOA Study “Health Care Costs - From Birth to Death”. Expenses Investment expenses are net of the investment returns; and, Administrative expenses are included in the per capital health cost. other Information: Notes There were no benefit changes during the year. The following assumption changes have been reflected in the Schedule of Changes in the Total OPEB Liability for the measurment period ending Septmber 30, 2024. The Single Discount Rate from the beginning of the year at 4.76% is changed to the end of the year at 4.03% (the resulting Single Discount Rate based on the expected rate of return on OPEB plan investments as of September 30, 2024 at 7.25% and the long-term municipal bond rate as of September 30, 2024 at 3.81%). Note: Schedule is intended to show information for ten years. Additional years will be displayed as the information becomes available. -- 125 of 220 -- 126 ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 City of Tallahassee REquIRED SuppLEmEnTARY InFORmATIOn See Independent Auditors’ Report Schedule of Contributions - oPeB (in thousands) (Unaudited) FY ending September 30, Actuarially Determined Contribution Actual Contribution Contribution Deficiency (excess) Covered employee Payroll Actual Contribution as a % of Covered employee Payroll 2017 $ 5,323 $ 2,015 $ 3,308 $ 149,247 1.35% 2018 5,567 2,017 3,550 153,725 1.31 2019 5,377 2,031 3,346 151,093 1.34 2020 6,070 2,033 4,037 151,273 1.34 2021 5,410 2,272 3,138 151,408 1.50 2022 5,654 2,294 3,360 170,403 1.35 2023 5,788 2,399 3,389 177,080 1.35 2024 5,022 2,539 2,483 186,543 1.36 notes to Schedule of Contributions - oPeB Valuation date: September 30, 2022 Notes: Actuarially determined contribution rates are calculated as of October 1, which is the beginning of the year in which contributions are made and reported. Methods and Assumptions Used to Determine Contribution Rates: Actuarial cost method Entry Age Normal Amortization method Level Percentage of Payroll, Closed Remaining Amortization Period 21 years Asset Valuation Method Market Value Inflation 2.50% Salary increases 2.95% to 6.40%, including inflation; varies by plan type and years of service. Investment rate of return 4.73%, net of OPEB plan expense, including inflation. Retirement Age Experience-based table of rates that are specific to the plan and type of eligibility condition. Mortality Mortality tables used in the July 1, 2022 actuarial valuation of the Florida Retirement System (FRS). They are based on the results of a statewide experience study covering the period 2013 through 2018. These rates were taken from adjusted Pub-2010 mortality tables published by SOA with generational mortality improvements using Scale MP-2018. Health Care Trend Rate Based on the Getzen Model, with trend starting at 5.90% for 2024 (based on actual premium increases), followed by 6.00% for 2025, and then gradually decreasing to an ultimate trend rate of 4.00% Aging factors Based on the 2013 SOA Study “Health Care Costs - From Birth to Death”. Expenses Investment expenses are net of the investment returns; and, Administrative expenses are included in the per capita health costs. other Information: Notes There were no benefit changes during the year. See Summary of Funding Results in section C of the September 30, 2023 OPEB Actuarial Valuation Report. Note: Schedule is intended to show information for 10 years. Additional years will be displayed as the information becomes available. -- 126 of 220 -- ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 127 City of Tallahassee REquIRED SuppLEmEnTARY InFORmATIOn See Independent Auditors’ Report Schedule of Investment Returns - oPeB (Unaudited) FY ending September 30, Annual Return* 2017 18.68% 2018 17.87 2019 4.27 2020 15.10 2021 26.89 2022 (16.73) 2023 14.89 2024 29.43 * Estimated Annual money-weighted rate of return, net of investment expenses. Note: Schedule is intended to show information for 10 years. Additional years will be displayed as the information becomes available. -- 127 of 220 -- 128 ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 This Page Intentionally Left Blank -- 128 of 220 -- ANNUAL FINANCIAL REPORT CITY OF ATLANTIS ANNUAL FINANCIAL REPORT RADFORD UNIVERSITY Annual Comprehensive Financial Report CITY OF TALLAHASSEE, FLORIDA Combining Financial Statements These basic financial statements provide a summary overview of the financial position of all funds and account groups as well as the operating results of all funds. They also serve as an introduction to the more detailed statements and schedules that follow in subsequent sections: ● Nonmajor Governmental Funds ● Nonmajor Enterprise Funds ● Internal Service Funds ● Fiduciary Funds -- 129 of 220 -- 130 ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 This Page Intentionally Left Blank -- 130 of 220 -- ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 131 City of Tallahassee COmBInIng FInAnCIAL STATEmEnTS nonmajor Governmental Funds Community Redevelopment Agency Accounts for the general tax revenue collected on and the expenses incurred in the redevelopment of properties in the community redevelopment area. Special Projects Accounts for federal, state and local grants. These grants include but are not limited to the Community Development Block Grant, the Neighborhood Stabilization Program, the Homeless Prevention and Rapid Re-Housing Program, Emergency Shelter Grants, the HOME program and other miscellaneous grants. This fund includes other miscellaneous items that are to be used for general government purposes that are not appropriated in another fund. Law enforcement For the accounting of state and federal forfeitures received by the City as prescribed by Florida Statutes. Also included: the Federal Law Enforcement Block Grant revenues and expenditures; and Second Dollar funding revenues received from the County who collects fines from citizens guilty of a statute violation or local ordinance. Building Code enforcement Accounts for all assets, operations, and maintenance of the City’s Building Inspection Division of the Growth Management Department. Revenues accounted for in this fund are derived from fees, fines, and investment earnings from the enforcement and implementation of the Florida Building code. Revenues in this fund were previously captured and reported in the General Revenue Fund. Concurrency Accounts for activity resulting from the State’s new concurrency requirements outlined in Chapter 163, F.S. This statute allows developers the opportunity to move forward with development despite concurrency constraints by contributing their fair share of the cost to improve the impacted transportation facilities. State Housing Partnership Accounts for State funding to be used as an incentive to produce and preserve affordable housing for very low, low, and moderate income families. Debt Service Accounts for the accumulation of resources for, and the payment of, interest and principal on all general long-term debt other than that payable from Proprietary Funds. Capital Improvement Accounts for general revenue used for the acquisition or construction of general fixed assets. Capital Bonds Accounts for bond proceeds used for the acquisition or construction of general fixed assets. Sales Tax Construction Accounts for tax proceeds used for the acquisition or construction of public safety and transportation improvements. Gas Tax Accounts for tax proceeds used for the acquisition or construction of transportation improvements. Cemetery To accumulate resources for the perpetual maintenance of the City’s cemeteries which include the sale and maintenance of plots. -- 131 of 220 -- 132 ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 City of Tallahassee COmBInIng FInAnCIAL STATEmEnTS See Independent Auditors’ Report Combining Balance Sheet nonmajor Governmental Funds September 30, 2024 (in thousands) Special Revenue Funds Community Redevelopment Agency Special Projects Law Enforcement Building Code Enforcement Concurrency State Housing Partnership ASSETS Assets Unrestricted Cash and Cash Equivalents $ - $ 6,971 $ - $ 2,816 $ 5,428 $ - Securities Lending Collateral - 83 - 34 65 - Receivables: Accrued Interest - 21 - 15 28 - Leases - - - - - - Notes - 803 - - - - Special Assessments - - - - - - Due From Other Funds - - - - - - Due From Other Governments - 2,707 - - - - Advances To Other Funds - - - - - - Assets Restricted Cash and Cash Equivalents 27,238 - 1,048 - - 2,236 Securities Lending Collateral 324 - 12 - - 27 Receivables: Accrued Interest 143 - 6 - - 12 Customers and Others 7 2 2 - - 1 Notes 133 - - - - 210 Due From Other Governments - 1,811 13 - - - Total Assets $ 27,845 $ 12,398 $ 1,081 $ 2,865 $ 5,521 $ 2,486 LIABILITIES Liabilities Unrestricted Obligations Under Securities Lending $ - $ 83 $ - $ 34 $ 65 $ - Accounts and Retainage Payable - 508 - 190 - - Due To Other Funds - 1,528 - - - - Advances from Other Funds 6 - - - - - Unearned Revenue - 6,002 - - - - Liabilities Restricted Obligations Under Securities Lending 324 - 12 - - 27 Accounts and Retainage Payable 254 196 15 - - 32 Unearned Revenue - - 347 - - 130 Total Liabilities 584 8,317 374 224 65 189 DEFERRED INFLOWS OF RESOURCES Lease Related Deferred Inflows - - - - - - Total Deferred Inflows of Resources - - - - - - Total Liabilities and Deferred Inflows of Resources 584 8,317 374 224 65 189 FUND BALANCES Spendable: Restricted 27,261 1,690 22 2,641 5,456 2,297 Committed - 4,479 685 - - - Unassigned - (2,088) - - - - Total Fund Balances 27,261 4,081 707 2,641 5,456 2,297 Total Liabilities and Fund Balances $ 27,845 $ 12,398 $ 1,081 $ 2,865 $ 5,521 $ 2,486 -- 132 of 220 -- ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 133 City of Tallahassee COmBInIng FInAnCIAL STATEmEnTS See Independent Auditors’ Report Combining Balance Sheet nonmajor Governmental Funds September 30, 2024 (in thousands) Capital Project Funds Permanent Fund Debt Service Capital Improvement Capital Bonds Sales Tax Construction Gas Tax Cemetery Total Nonmajor Governmental Funds $ - $ 10,191 $ - $ 10,122 $ - $ 2,121 $ 37,649 - 121 - 573 - 25 901 - 56 - 36 - 11 167 - - - 291 - - 291 - 103 - - - - 906 - 42 - - - - 42 - 3,005 - - - - 3,005 - - - 1,153 1,181 - 5,041 9,995 - - - - - 9,995 360 11,975 66,062 - - - 108,919 - 143 787 - - - 1,293 - 63 347 - - - 571 - - - - - - 12 - - - - - - 343 - - - - - - 1,824 $ 10,355 $ 25,699 $ 67,196 $ 12,175 $ 1,181 $ 2,157 $ 170,959 $ - $ 121 $ - $ 573 $ - $ 25 $ 901 - 370 - 455 462 2 1,987 - - - - 1,477 - 3,005 - 3,000 - - - - 3,006 - - - - - - 6,002 - 143 787 - - - 1,293 - 309 5,684 - - - 6,490 - - - - - - 477 - 3,943 6,471 1,028 1,939 27 23,161 - - - 255 - - 255 - - - 255 - - 255 - 3,943 6,471 1,283 1,939 27 23,416 10,355 - - 10,891 - - 60,613 - 21,757 60,725 - - 2,129 89,775 - (1) - 1 (758) 1 (2,845) 10,355 21,756 60,725 10,892 (758) 2,130 147,543 $ 10,355 $ 25,699 $ 67,196 $ 12,175 $ 1,181 $ 2,157 $ 170,959 -- 133 of 220 -- 134 ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 City of Tallahassee COmBInIng FInAnCIAL STATEmEnTS See Independent Auditors’ Report Combining Statement of Revenues, expenditures, and Changes in Fund Balances nonmajor Governmental Funds For the Fiscal Year ended September 30, 2024 (in thousands) Special Revenue Funds Community Redevelopment Agency Special Projects Law Enforcement Building Code Enforcement Concurrency State Housing Partnership REVENUES Taxes $ 4,892 $ - $ - $ - $ - $ - Licenses and Permits - - - 4,839 1,802 - Intergovernmental Revenues 3,705 15,825 128 - - 5,208 Charges for Services 478 576 - 320 - - Fines and Forfeitures - - 417 25 - - Net Investment Earnings 826 315 29 79 201 86 Securities Lending Income 18 9 - - 9 - Change in Fair Value of Investments 2,000 34 - 21 - - Miscellaneous Revenues 114 1,064 - 272 - - Total Revenues 12,033 17,823 574 5,556 2,012 5,294 EXPENDITURES Current General Government - 116 16 - - - Public Safety - 9,226 312 4,857 - - Transportation - 141 - - 3,027 - Human Services - 4,188 - - - 392 Economic Environment 3,276 5,242 - - - 2,336 Physical Environment - 2,712 - - - - Culture and Recreation - 267 - - - - Securities Lending Expense Interest 16 8 - - 8 - Debt Service Principal Retired 560 - - - - - Interest and Fiscal Charges 37 - - - - - Total Expenditures 3,889 21,900 328 4,857 3,035 2,728 Excess of Revenues Over (Under) Expenses 8,144 (4,077) 246 699 (1,023) 2,566 OTHER FINANCING SOURCES (USES) Transfers In - 5 118 - - - Transfers Out (20) - - (168) - - Proceeds from Sale of Bonds and Loans - - - - - - Premium from Bond Issuance - - - - - - Total Other Financing Sources (Uses) (20) 5 118 (168) - - Net Change in Fund Balances 8,124 (4,072) 364 531 (1,023) 2,566 Fund Balances - October 1 19,137 8,153 343 2,110 6,479 (269) Fund Balances - September 30 $ 27,261 $ 4,081 $ 707 $ 2,641 $ 5,456 $ 2,297 -- 134 of 220 -- ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 135 City of Tallahassee COmBInIng FInAnCIAL STATEmEnTS See Independent Auditors’ Report Combining Statement of Revenues, expenditures, and Changes in Fund Balances nonmajor Governmental Funds For the Fiscal Year ended September 30, 2024 (in thousands) Capital Project Funds Permanent Fund Debt Service Capital Improvement Capital Bonds Sales Tax Construction Gas Tax Cemetery Total Governmental Funds $ - $ - $ - $ - $ - $ - $ 4,892 - - - - - - 6,641 - 5,835 - 6,292 7,020 - 44,013 - 256 - - - 129 1,759 - - - - - - 442 390 877 922 430 10 65 4,230 9 19 9 19 - - 92 - - - - - 166 2,221 - 79 622 19 65 1 2,236 399 7,066 1,553 6,760 7,095 361 66,526 - 1,712 2,463 102 - - 4,409 - 2,160 - - - - 16,555 - 1,849 4,065 3,317 3,687 - 16,086 - 71 - - - - 4,651 - 73 - - - - 10,927 - 5,113 13,056 52 5 185 21,123 - 1,538 1 589 - - 2,395 8 16 8 16 - - 80 8,155 - - - - - 8,715 4,079 1 - - - - 4,117 12,242 12,533 19,593 4,076 3,692 185 89,058 (11,843) (5,467) (18,040) 2,684 3,403 176 (22,532) 8,575 5,038 - - - - 13,736 - - - - (4,526) (238) (4,952) 1,850 - 88,260 - - - 90,110 - - 4,970 - - - 4,970 10,425 5,038 93,230 - (4,526) (238) 103,864 (1,418) (429) 75,190 2,684 (1,123) (62) 81,332 11,773 22,185 (14,465) 8,208 365 2,192 66,211 $ 10,355 $ 21,756 $ 60,725 $ 10,892 $ (758) $ 2,130 $ 147,543 -- 135 of 220 -- 136 ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 City of Tallahassee COmBInIng FInAnCIAL STATEmEnTS nonmajor enterprise Funds StarMetro Accounts for the operations and maintenance of the City’s public transit system. Solid Waste Accounts for the assets, operation and maintenance of the City-owned solid waste operation. Golf Course Accounts for the operations of the City’s eighteen-hole Hilaman Park Golf Course. Fire Services Accounts for the operation and maintenance of the City-owned fire services department. -- 136 of 220 -- ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 137 City of Tallahassee COmBInIng FInAnCIAL STATEmEnTS See Independent Auditors’ Report Combining Statement of net Position nonmajor enterprise Funds September 30, 2024 (in thousands) StarMetro Solid Waste Golf Fire Services Total ASSETS Current Assets Unrestricted Cash and Cash Equivalents $ - $ - $ 770 $ 2,778 $ 3,548 Securities Lending Collateral - - 9 33 42 Receivables: Accrued Interest - - 4 15 19 Customers and Others - 6,041 - 8,893 14,934 Leases 56 - - - 56 Due From Other Governments 9,351 10 - 613 9,974 Less: Allowance for Doubtful Accounts - (1,266) - (2,262) (3,528) Inventory 972 - 40 - 1,012 Restricted Cash and Cash Equivalents - - - 26,318 26,318 Securities Lending Collateral - - - 313 313 Accrued Interest - - - 138 138 Due From Other Governments 1,303 - - - 1,303 Total Current Assets 11,682 4,785 823 36,839 54,129 Noncurrent Assets Leases 173 - - - 173 Capital Assets Land and Construction in Progress 3,114 - 144 2,268 5,526 Other, Net of Accumulated Depreciation 23,513 9,002 495 11,104 44,114 Total Noncurrent Assets 26,800 9,002 639 13,372 49,813 Total Assets 38,482 13,787 1,462 50,211 103,942 DEFERRED OUTFLOW OF RESOURCES Pension Related Deferred Outflows 3,891 2,014 109 - 6,014 OPEB Related Deferred Outflows 742 358 13 1,737 2,850 Deferred Outflows on Fuel Hedging 153 - - - 153 Total Deferred Outflows of Resources 4,786 2,372 122 1,737 9,017 Total Assets and Deferred Outflows of Resources $ 43,268 $ 16,159 $ 1,584 $ 51,948 $ 112,959 LIABILITIES Current Liabilities Unrestricted Accounts and Retainage Payable $ 662 $ 1,889 $ 48 $ 715 $ 3,314 Due To Other Funds 17,034 2,880 1 - 19,915 Compensated Absences 602 193 28 1,971 2,794 Lease Payable 377 - - - 377 SBITA Liability 64 - - - 64 Obligations Under Securities Lending - - 9 33 42 Unearned Revenue 138 - - - 138 Loans Payable - - - 185 185 Bonds Payable 907 - - - 907 Restricted Accounts and Retainage Payable 944 - - 484 1,428 Obligations Under Securities Lending - - - 313 313 Total Current Liabilities 20,728 4,962 86 3,701 29,477 Noncurrent Liabilities Advances from Other Funds - 5,430 299 6,017 11,746 Compensated Absences 257 411 39 1,193 1,900 Lease Payable 2,132 - - - 2,132 SBITA Liability 69 - - - 69 Net OPEB Liability 4,278 1,439 119 6,193 12,029 Loans Payable - - - 26,815 26,815 Bonds Payable 2,848 - - - 2,848 Net Pension Liability 4,351 2,240 125 - 6,716 Derivative Instruments 153 - - - 153 Total Noncurrent Liabilities 14,088 9,520 582 40,218 64,408 Total Liabilities 34,816 14,482 668 43,919 93,885 DEFERRED INFLOWS OF RESOURCES Pension Related Deferred Inflows 174 86 5 - 265 OPEB Related Deferred Inflows 944 526 14 2,592 4,076 Lease Related Deferred Inflows 227 - - - 227 Total Deferred Inflows of Resources 1,345 612 19 2,592 4,568 NET POSITION Net Investment in Capital Assets 20,003 9,002 639 12,829 42,473 Restricted for: - - 664 - 664 Unrestricted (12,896) (7,937) (406) (7,392) (28,631) Total Net Position 7,107 1,065 897 5,437 14,506 Total Liabilities, Deferred Inflows, and Net Position $ 43,268 $ 16,159 $ 1,584 $ 51,948 $ 112,959 -- 137 of 220 -- 138 ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 City of Tallahassee COmBInIng FInAnCIAL STATEmEnTS See Independent Auditors’ Report Combining Statement of Revenues, expenses, and Changes in net Position nonmajor enterprise Funds for the Fiscal Year ended September 30, 2024 (in thousands) StarMetro Solid Waste Golf Fire Services Total oPeRATInG ReVenUeS Charges for Services Residential Sales $ - $ 15,335 $ - $ 28,967 $ 44,302 Commercial and Industrial Sales - 22,887 - 22,550 45,437 County Government - - - 3,616 3,616 Recreation Fees - - 1,387 - 1,387 Transportation Fees 6,762 - - - 6,762 Other Charges 142 11 - 591 744 Total Operating Revenues 6,904 38,233 1,387 55,724 102,248 oPeRATInG eXPenSeS Personnel Services 15,336 7,005 651 35,049 58,041 Fossil Fuel 310 - - - 310 Contractual Services 7,779 36,400 275 14,589 59,043 Materials and Supplies 3,194 158 178 878 4,408 Other 2,713 569 81 1,618 4,981 Depreciation 3,474 608 63 1,371 5,516 Amortization 435 - - 2 437 Total Operating Expenses 33,241 44,740 1,248 53,507 132,736 Operating Income (Loss) (26,337) (6,507) 139 2,217 (30,488) non-oPeRATInG ReVenUeS (eXPenSeS) Net Investment Earnings 995 151 25 285 1,456 Change in Fair Value of Investments - 259 20 - 279 Securities Lending Securities Lending Income 19 - - 9 28 Interest Expense (16) - - (8) (24) Intergovernmental Revenues 2,474 812 - - 3,286 Other Revenues 560 71 19 1,483 2,133 Interest Expense (149) (182) (4) (234) (569) Debt Issuance Costs - - - (73) (73) Other Expenses (1,072) (222) - (457) (1,751) Total Non-Operating Revenues (Expenses) 2,811 889 60 1,005 4,765 Income (Loss) Before Capital Contributions and Operating Transfers (23,526) (5,618) 199 3,222 (25,723) CAPITAL ConTRIBUTIonS AnD TRAnSFeRS Capital Contributions 4,436 - - - 4,436 Transfers In 13,678 6,228 - 14 19,920 Transfers Out (158) (9,467) (82) (3,183) (12,890) Total Operating Transfers 17,956 (3,239) (82) (3,169) 11,466 Change in Net Position (5,570) (8,857) 117 53 (14,257) Net Position - October 1 12,677 9,922 780 5,384 28,763 Net Position - September 30 $ 7,107 $ 1,065 $ 897 $ 5,437 $ 14,506 -- 138 of 220 -- ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 139 City of Tallahassee COmBInIng FInAnCIAL STATEmEnTS See Independent Auditors’ Report Combining Statement of Cash Flows nonmajor enterprise Funds for the Fiscal Year ended September 30, 2024 (in thousands) StarMetro Solid Waste Golf Fire Services Total CASH FLOWS FROM OPERATING ACTIVITIES Cash Received from Customers $ 13,661 $ 37,802 $ 1,387 $ 57,221 $ 110,071 Cash Paid to Suppliers for Goods and Services (8,622) (26,636) (430) (2,639) (38,327) Cash Paid to Employees for Services (15,027) (6,881) (629) (35,366) (57,903) Cash Paid For Interfund Services (4,387) (10,987) (135) (12,565) (28,074) Net Cash Provided by (Used for) Operating Activities (14,375) (6,702) 193 6,651 (14,233) CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Transfers from Other Funds 13,678 6,228 - 14 19,920 Grant Receipts 2,474 812 - - 3,286 Cash Received (Paid) From (For) Other Financing Activities (513) (150) 18 1,025 380 Cash Received (Paid) From (For) Interfund Activity (3,501) 12,196 (74) (4,549) 4,072 Transfers To Other Funds (158) (9,467) (82) (3,183) (12,890) Net Cash Provided by (Used for) Noncapital Financing Activities 11,980 9,619 (138) (6,693) 14,768 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Capital Contributions 4,436 - - - 4,436 Debt Issuance Costs - - - (73) (73) Cash Received (Paid) From Acquisition, Construction, and Sale of Capital Assets Activities (2,002) (5,585) 83 2,312 (5,192) Proceeds From Bonds and Loans - - - 27,000 27,000 Principal Payments on Bonds and Loans (888) - - - (888) Interest Paid (149) (182) (4) (234) (569) Net Cash Provided by (Used for) Capital and Related Financing Activities 1,397 (5,767) 79 29,005 24,714 CASH FLOWS FROM INVESTING ACTIVITIES Interest Received on Investments 998 165 24 133 1,320 Change in Fair Value of Investments - 259 20 - 279 Net Cash Provided by (Used for) Investing Activities 998 424 44 133 1,599 Net Increase (Decrease) in Cash and Cash Equivalents - (2,426) 178 29,096 26,848 Cash and Cash Equivalents - October 1 - 2,426 592 - 3,018 Cash and Cash Equivalents - September 30 $ - $ - $ 770 $ 29,096 $ 29,866 Classified As: Unrestricted Assets $ - $ - $ 770 $ 2,778 $ 3,548 Restricted Assets $ - $ - $ - $ 26,318 $ 26,318 $ - $ - $ 770 $ 29,096 $ 29,866 Reconciliation of Operating Income (Loss) to Net Cash Provided by (Used for) Operating Activities: Operating Income (Loss) $ (26,337) $ (6,507) $ 139 $ 2,217 $ (30,488) Adjustments to Reconcile Operating Income (Loss) to Net Cash Provided by (Used for) Operating Activities: Depreciation/Amortization 3,909 608 63 1,373 5,953 Net pension and OPEB liability changes 270 121 6 (449) (52) Changes in Lease related deferred inflows 227 - - - 227 (Increase) Decrease in Accounts Receivable (8) (99) - 412 305 (Increase) Decrease in Inventory 178 - (16) - 162 Increase (Decrease) in Lease Receivable (229) - - - (229) (Increase) Decrease in Due From Other Governments 6,689 96 - 2,326 9,111 Increase (Decrease) in Accounts Payable 804 (923) (15) 640 506 Increase (Decrease) in Compensated Absences 38 2 16 132 188 (Increase) Decrease in Unearned Revenue 84 - - - 84 Total Adjustments 11,962 (195) 54 4,434 16,255 Net Cash Provided by (Used for) Operating Activities $ (14,375) $ (6,702) $ 193 $ 6,651 $ (14,233) -- 139 of 220 -- 140 ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 This Page Intentionally Left Blank -- 140 of 220 -- ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 141 City of Tallahassee COmBInIng FInAnCIAL STATEmEnTS Internal Service Funds 800 MHz Communication Supports the 800 MHz Radios Communications unit within the Information System Services. Revenues for the fund are derived from Leon County per agreement, and rentals from other users. The remaining cost is allocated to user departments. The allocation is based on the number of 800 MHz devices per department. Technology and Innovation Accounts for the costs of the City’s data processing operations. Human Resources Accounts for the costs of the City’s employee relations operations. Internal Loan Accounts for the loans received from the Sunshine State Governmental Financing Commission, which in turn are loaned to other funds to provide financing for capital projects. Pension Administration Accounts for the costs of the City’s employee retirement plan’s administrative operation. Diversity and Inclusion Accounts for the cost of the City’s efforts to promote diversity and inclusion throughout the government. Purchasing Accounts for the costs of the City’s procurement operations. Accounting Accounts for the costs of the City’s accounting operations. Garage Accounts for the costs of maintaining and operating the City’s fleet management operation. Risk Management Accounts for the costs of the City’s risk management. Revenue Collection Accounts for the costs of the City’s revenue collection services. Utility Services Accounts for the costs of centralizing safety and training, environmental, GIS, sales, rate design, and marketing functions of the City’s utilities. environmental Services and Facilities Management (eSFM) Accounts for the City’s environmental policy development and initiatives and environ- mental regulatory compliance. Wholesale energy Services Accounts for the costs of the purchase of power and fuel for the City’s electric and gas utilities and off system sales and services of power and natural gas to other utilities and open market participants. Community Relations Accounts for the City’s community relations function which serves to engage citizens through interactive educational outreach efforts focused on a variety of City services and programs ranging from utility services to transportation. -- 141 of 220 -- 142 ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 City of Tallahassee COmBInIng FInAnCIAL STATEmEnTS See Independent Auditors’ Report Combining Statement of net Position Internal Service Funds September 30, 2024 (in thousands) 800 Mhz Communication Technology and Innovation Human Resources Internal Loan Pension Administration Diversity and Inclusion ASSETS Current Assets Cash and Cash Equivalents $ 1,089 $ - $ - $ 2,035 $ 113 $ 117 Securities Lending Collateral 13 - - 24 1 1 Receivables: Accrued Interest 6 - - 11 1 1 Customers and Others 2 7 1 - 1 - Due From Other Governments 427 14 - 12 - - Prepaid Expenses - - - - - - Due From Other Funds - - - - - - Inventory - - - - - - Total Current Assets 1,537 21 1 2,082 116 119 Noncurrent Assets Advances To Other Funds - - - 1,599 - - Deposits - - - - - - Capital Assets Land and Construction in Progress 440 8,987 - - - - Other, Net of Accumulated Depreciation 982 17,807 26 - - 29 Total Noncurrent Assets 1,422 26,794 26 1,599 - 29 Total Assets $ 2,959 $ 26,815 $ 27 $ 3,681 $ 116 $ 148 DEFERRED OUTFLOWS OF RESOURCES Deferred Outflows on Fuel Hedging - - - - - - Total Deferred Outflows of Resources - - - - - - Total Assets and Deferred Outflows of Resources $ 2,959 $ 26,815 $ 27 $ 3,681 $ 116 $ 148 LIABILITIES Current Liabilities Unrestricted Accounts and Retainage Payable $ 80 $ 2,443 $ 85 $ - $ 33 $ 29 Due To Other Funds - 3,376 66 - - - Compensated Absences 25 580 244 - 37 77 Lease Payable 264 1,030 4 - - - SBITA Liability - 1,235 - - - 22 Obligations Under Securities Lending 13 - - 24 1 1 Bonds Payable - 885 - - - - Total Current Liabilities 382 9,549 399 24 71 129 Noncurrent Liabilities Claims Payable - - - - - - Advances from Other Funds - 44 29 - 6 - Compensated Absences - 273 14 - - 23 Lease Payable 570 687 - - - - SBITA Liability - 1,335 - - - - Bonds Payable - 2,730 - - - - Derivative Instruments - - - - - - Total Noncurrent Liabilities 570 5,069 43 - 6 23 Total Liabilities 952 14,618 442 24 77 152 DEFERRED INFLOWS OF RESOURCES Total Deferred Inflows of Resources - - - - - - Total Liabilities and Deferred Inflows of Resources 952 14,618 442 24 77 152 NET POSITION Net Investment in Capital Assets 588 18,892 22 - - 7 Unrestricted 1,419 (6,695) (437) 3,657 39 (11) Total Net Position 2,007 12,197 (415) 3,657 39 (4) Total Liabilities, Deferred Inflows, and Net Position $ 2,959 $ 26,815 $ 27 $ 3,681 $ 116 $ 148 -- 142 of 220 -- ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 143 City of Tallahassee COmBInIng FInAnCIAL STATEmEnTS See Independent Auditors’ Report Combining Statement of net Position Internal Service Funds September 30, 2024 (in thousands) Purchasing Accounting Garage Risk Management Revenue Collection Utility Services Environmental Services and Facilities Management (ESFM) Wholesale Energy Services Community Relations Total $ 230 $ 1,292 $ 17,232 $ 18,962 $ 196 $ 6,698 $ 3,763 $ 9,134 $ 157 $ 61,018 3 15 205 305 2 212 45 109 2 937 1 7 90 100 1 35 20 48 1 322 2 1 30 2 1 3 1 351 - 402 - - 69 - - 22 - - - 544 - - - 3,919 - - - - - 3,919 - - - - 67 - - 23,346 - 23,413 - - 608 - - - - 1,722 - 2,330 236 1,315 18,234 23,288 267 6,970 3,829 34,710 160 92,885 - - - - - - - - - 1,599 - - - - - - - 5,904 - 5,904 44 - - - - - - - - 9,471 305 1 54,279 - 410 953 1,840 - - 76,632 349 1 54,279 - 410 953 1,840 5,904 - 93,606 $ 585 $ 1,316 $ 72,513 $ 23,288 $ 677 $ 7,923 $ 5,669 $ 40,614 $ 160 $ 186,491 - - 361 - - - - 8,628 - 8,989 - - 361 - - - - 8,628 - 8,989 $ 585 $ 1,316 $ 72,874 $ 23,288 $ 677 $ 7,923 $ 5,669 $ 49,242 $ 160 $ 195,480 $ 44 $ 163 $ 1,677 $ 54 $ 51 $ 477 $ 279 $ 8,229 $ 44 $ 13,688 - - - - - - - 30,000 - 33,442 118 309 367 113 91 855 319 - 99 3,234 - - - - - 56 - - - 1,354 32 - 429 - - - - - - 1,718 3 15 205 305 2 212 45 109 2 937 - - - - - - - - - 885 197 487 2,678 472 144 1,600 643 38,338 145 55,258 - - - 15,690 - - - - - 15,690 14 29 - 9 14 - 14 - 3 162 1 152 175 75 99 497 31 31 43 1,414 - - - - - 95 - - - 1,352 - - 950 - - - - - - 2,285 - - - - - - - - - 2,730 - - 361 - - - - 8,628 - 8,989 15 181 1,486 15,774 113 592 45 8,659 46 32,622 212 668 4,164 16,246 257 2,192 688 46,997 191 87,880 - - - - - - - - - - 212 668 4,164 16,246 257 2,192 688 46,997 191 87,880 317 1 52,900 - 410 802 1,840 - - 75,779 56 647 15,810 7,042 10 4,929 3,141 2,245 (31) 31,821 373 648 68,710 7,042 420 5,731 4,981 2,245 (31) 107,600 $ 585 $ 1,316 $ 72,874 $ 23,288 $ 677 $ 7,923 $ 5,669 $ 49,242 $ 160 $ 195,480 -- 143 of 220 -- 144 ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 City of Tallahassee COmBInIng FInAnCIAL STATEmEnTS See Independent Auditors’ Report Combining Statement of Revenues, expenses and Changes in net Position Internal Service Funds for the Fiscal Year ended September 30, 2024 (in thousands) 800 Mhz Communication Technology and Innovation Human Resources Internal Loan Pension Administration Diversity and Inclusion OPERATING REVENUES Charges for Services $ 1,726 $ 31,304 $ 5,442 $ - $ 1,194 $ 1,467 Total Operating Revenues 1,726 31,304 5,442 - 1,194 1,467 OPERATING EXPENSES Personnel Services 611 10,750 3,790 - 744 1,193 Contractual Services 1,819 23,115 1,060 - 347 148 Materials and Supplies 7 124 16 - 13 5 Other 11 2,281 48 - 29 84 Depreciation 453 5,016 4 - - - Amortization 198 4,791 4 - - 22 Total Operating Expenses 3,099 46,077 4,922 - 1,133 1,452 Operating Income (Loss) (1,373) (14,773) 520 - 61 15 NON-OPERATING REVENUES (EXPENSES) Net Investment Earnings 50 - 2 58 - - Change in Fair Value of Investments 113 - 5 - - 1 Securities Lending Securities Lending Income - - - - - - Interest Expense - - - - - - Agent Fees - - - - - - Intergovernmental Revenues 897 - - - - - Other Revenues 457 5,594 2 1 - 26 Interest Income - - - 51 - - Interest Expense (41) (1,799) (1) - (22) (2) Other Expenses - (374) - - - - Total Non-Operating Revenues (Expenses) 1,476 3,421 8 110 (22) 25 Income (Loss) Before Capital Contributions and Operating Transfers 103 (11,352) 528 110 39 40 CAPITAL CONTRIBUTIONS AND TRANSFERS Capital Contributions - - - - - - Transfers In 3 48,972 - - - - Transfers Out (183) (34,897) (539) - - (43) Total Net Transfers (180) 14,075 (539) - - (43) Change in Net Position (77) 2,723 (11) 110 39 (3) Net Position - October 1 2,084 9,474 (404) 3,547 - (1) Net Position - September 30 $ 2,007 $ 12,197 $ (415) $ 3,657 $ 39 $ (4) -- 144 of 220 -- ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 145 City of Tallahassee COmBInIng FInAnCIAL STATEmEnTS See Independent Auditors’ Report Combining Statement of Revenues, expenses and Changes in net Position Internal Service Funds for the Fiscal Year ended September 30, 2024 (in thousands) Purchasing Accounting Garage Risk Management Revenue Collection Utility Services Environmental Services and Facilities Management (ESFM) Wholesale Energy Services Community Relations Total $ 1,833 $ 6,422 $ 36,983 $ 14,462 $ 2,272 $ 22,695 $ 7,405 $ 103,127 $ 2,023 $ 238,355 1,833 6,422 36,983 14,462 2,272 22,695 7,405 103,127 2,023 238,355 1,886 4,487 6,894 1,726 1,532 15,717 3,521 499 1,609 54,959 322 1,091 3,069 471 487 6,133 3,350 243 348 42,003 5 13 12,312 5 138 275 252 103,602 49 116,816 18 583 706 12,526 37 321 189 14 15 16,862 22 - 6,304 1 28 101 122 - 1 12,052 41 237 411 - - 50 - - - 5,754 2,294 6,411 29,696 14,729 2,222 22,597 7,434 104,358 2,022 248,446 (461) 11 7,287 (267) 50 98 (29) (1,231) 1 (10,091) 8 26 608 635 19 142 113 1,215 - 2,876 20 67 - 1,180 48 377 38 2,831 1 4,681 - - 19 19 - 28 - - - 66 - - (16) (16) - (24) - - - (56) - - - - - (1) - - - (1) - - - - - - - - - 897 492 250 5,450 389 1 55 28 - 5 12,750 - - - - - - - - - 51 (3) (6) (77) - - (6) - - (3) (1,960) - - (209) - - (5) (95) - - (683) 517 337 5,775 2,207 68 566 84 4,046 3 18,621 56 348 13,062 1,940 118 664 55 2,815 4 8,530 - - - - - - 287 - - 287 - - 10,189 422 - 16 1,022 - - 60,624 - - (1,346) - (135) (802) (21) - - (37,966) - - 8,843 422 (135) (786) 1,288 - - 22,945 56 348 21,905 2,362 (17) (122) 1,343 2,815 4 31,475 317 300 46,805 4,680 437 5,853 3,638 (570) (35) 76,125 $ 373 $ 648 $ 68,710 $ 7,042 $ 420 $ 5,731 $ 4,981 $ 2,245 $ (31) $ 107,600 -- 145 of 220 -- 146 ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 City of Tallahassee COmBInIng FInAnCIAL STATEmEnTS See Independent Auditors’ Report Combining Statement of Cash Flows Internal Service Funds for the Fiscal Year ended September 30, 2024 (in thousands) 800 Mhz Communication Technology and Innovation Human Resources Internal Loan Pension Administration Diversity and Inclusion CASH FLOWS FROM OPERATING ACTIVITIES Cash Received for Interfund Services $ 1,015 $ 31,306 $ 5,443 $ - $ 1,193 $ 1,467 Cash Paid to Suppliers for Goods and Services (1,338) (25,435) (257) - (224) (109) Cash Paid to Employees for Services (615) (10,992) (3,785) - (740) (1,203) Cash Paid For Interfund Services (508) (679) (876) - (144) (123) Net Cash Provided by (Used for) Operating Activities (1,446) (5,800) 525 - 85 32 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Transfers from Other Funds 3 48,972 - - - - Grant Receipts 897 - - - - - Cash Received (Paid) From (For) Other Financing Activities 457 5,221 2 1 - 26 Cash Received (Paid) From (For) Interfund Activity - (32,400) (2) (243) (6) - Transfers To Other Funds (183) (34,897) (539) - - (43) Net Cash Provided by (Used for) Noncapital Financing Activities 1,174 (13,104) (539) (242) (6) (17) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Capital Contributions - - - - - - Cash Received (Paid) From Acquisition, Construction, and Sale of Capital Assets Activities 41 21,578 8 - - (23) Principal Payments on Bonds and Loans - (875) - - - - Interest Paid (41) (1,799) (1) - (22) (2) Net Cash Provided by (Used for) Capital and Related Financing Activities - 18,904 7 - (22) (25) CASH FLOWS FROM INVESTING ACTIVITIES Interest Received on Investments 51 - 2 112 - 1 Change in Fair Value of Investments 113 - 5 - - 1 Net Cash Provided by (Used for) Investing Activities 164 - 7 112 - 2 Net Increase (Decrease) in Cash and Cash Equivalents (108) - - (130) 57 (8) Cash and Cash Equivalents - October 1 1,197 - - 2,165 56 125 Cash and Cash Equivalents - September 30 $ 1,089 $ - $ - $ 2,035 $ 113 $ 117 Classified As: Unrestricted Assets $ 1,089 $ - $ - $ 2,035 $ 113 $ 117 Restricted Assets - - - - - - $ 1,089 $ - $ - $ 2,035 $ 113 $ 117 Reconciliation of Operating Income (Loss) to Net Cash Provided by (Used for) Operating Activities: Operating Income (Loss) $ (1,373) $ (14,773) $ 520 $ - $ 61 $ 15 Adjustments to Reconcile Operating Income (Loss) to Net Cash Provided by (Used for) Operating Activities: Depreciation/Amortization 651 9,807 8 - - 22 (Increase) Decrease in Accounts Receivable (1) - 1 - (1) - (Increase) Decrease in Inventory - - - - - - (Increase) Decrease in Deposits - - - - - - (Increase) Decrease in Due From Other Governments (56) 1 - - - - Increase (Decrease) in Accounts Payable (9) (594) (9) - 21 5 Increase (Decrease) in Due to Other Governments (654) - - - - - Increase (Decrease) in Compensated Absences (4) (241) 5 - 4 (10) Increase (Decrease) in Insurance Deposits - - - - - - Total Adjustments (73) 8,973 5 - 24 17 Net Cash Provided by (Used for) Operating Activities $ (1,446) $ (5,800) $ 525 $ - $ 85 $ 32 Noncash Capital and Related Financing Activities: Increase of Assets and Liabilities as a result of Leases and SBITAs $ 793 $ 3,421 $ - $ - $ - $ - -- 146 of 220 -- ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 147 City of Tallahassee COmBInIng FInAnCIAL STATEmEnTS See Independent Auditors’ Report Combining Statement of Cash Flows Internal Service Funds for the Fiscal Year ended September 30, 2024 (in thousands) Purchasing Accounting Garage Risk Management Revenue Collection Utility Services Environmental Services and Facilities Management (ESFM) Wholesale Energy Services Community Relations Total Internal Service Funds $ 1,832 $ 6,423 $ 37,003 $ 14,510 $ 2,274 $ 22,697 $ 7,405 $ 103,076 $ 2,022 $ 237,666 (60) (1,364) (11,278) (16,203) (351) (2,715) (3,059) (105,283) (241) (167,917) (1,912) (4,477) (6,920) (1,731) (1,519) (15,683) (3,443) (506) (1,535) (55,061) (271) (384) (3,114) (192) (282) (3,815) (718) (71) (158) (11,335) (411) 198 15,691 (3,616) 122 484 185 (2,784) 88 3,353 $ - - 10,189 422 - 16 1,022 - - 60,624 - - - - - - - - - 897 492 250 5,240 389 1 50 (67) - 5 12,067 (14) (28) - (7) (15) - (14) 7,328 (4) (25,405) - - (1,346) - (135) (802) (21) - - (37,966) 478 222 14,083 804 (149) (736) 920 7,328 1 10,217 - - - - - - 287 - - 287 (32) (242) (31,663) - - 333 (427) - - (10,427) - - - - - - - - - (875) (3) (6) (77) - - (6) - - (3) (1,960) (35) (248) (31,740) - - 327 (140) - (3) (12,975) 8 25 637 658 18 147 109 1,210 - 2,978 20 67 - 1,180 48 377 38 2,831 1 4,681 28 92 637 1,838 66 524 147 4,041 1 7,659 60 264 (1,329) (974) 39 599 1,112 8,585 87 8,254 170 1,028 18,561 19,936 157 6,099 2,651 549 70 52,764 $ 230 $ 1,292 $ 17,232 $ 18,962 $ 196 $ 6,698 $ 3,763 $ 9,134 $ 157 $ 61,018 $ 230 $ 1,292 $ 17,232 $ 18,962 $ 196 $ 6,698 $ 3,763 $ 9,134 $ 157 $ 61,018 - - - - - - - - - - $ 230 $ 1,292 $ 17,232 $ 18,962 $ 196 $ 6,698 $ 3,763 $ 9,134 $ 157 $ 61,018 $ (461) $ 11 $ 7,287 $ (267) $ 50 $ 98 $ (29) $ (1,231) $ 1 $ (10,091) 63 237 6,715 1 28 151 122 - 1 17,806 (1) 1 (26) 1 1 - - (54) - (79) - - 235 - - - - (1,361) - (1,126) - - - - - - - (135) - (135) - - 46 - 1 1 - 138 - 131 14 (61) 1,461 14 28 200 14 (134) 12 962 - - - - - - - - - (654) (26) 10 (27) (5) 14 34 78 (7) 74 (101) - - - (3,360) - - - - - (3,360) 50 187 8,404 (3,349) 72 386 214 (1,553) 87 13,444 $ (411) $ 198 $ 15,691 $ (3,616) $ 122 $ 484 $ 185 $ (2,784) $ 88 $ 3,353 $ - $ - $ 1,792 $ - $ - $ 126 $ - $ - $ - $ 6,132 -- 147 of 220 -- 148 ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 This Page Intentionally Left Blank -- 148 of 220 -- ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 149 City of Tallahassee COmBInIng FInAnCIAL STATEmEnTS Pension and other employee Benefit Trust Funds Pension Trust Accounts for the accumulation of resources to be used for retirement annuity payments to City employees for the Defined Contribution Plan. The Defined Contribution Plan covers all employees. Matched Annuity Pension Plan Accounts for the accumulation of resources to be used for retirement annuity payments to City employees for the Defined Contribution Plan. The Defined Contribution Plan covers all employees. oPeB Trust Accounts for the accumulation of resources to be used for benefit payments for retirees’ health care costs. -- 149 of 220 -- 150 ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 City of Tallahassee COmBInIng FInAnCIAL STATEmEnTS See Independent Auditors’ Report Combining Statement of net Position Pension and Other Employee Benefit Trust Funds September 30, 2024 (in thousands) Pension Trust Fund Matched Annuity Pension Plan oPeB Trust Total ASSeTS Cash and Cash Equivalents $ 14,953 $ 13 $ 1,163 $ 16,129 Receivables Other Receivables - 24 - 24 Accrued Interest 6,080 - 6 6,086 Total Receivables 6,080 24 6 6,110 Investments, at Fair Value Mutual Index Funds - 190,517 - 190,517 Private Equities 270,111 - - 270,111 Fixed Income Securities 378,330 - - 378,330 Domestic Equities 870,000 - 16,409 886,409 International Equities 206,427 - - 206,427 Private Credit Funds 153,174 - - 153,174 Alternative Investments 282,997 - - 282,997 Timber 117,818 - - 117,818 Total Investments 2,278,857 190,517 16,409 2,485,783 Securities Lending Collateral 65,504 - 190 65,694 Total Assets $ 2,365,394 $ 190,554 $ 17,768 $ 2,573,716 LIABILITIeS Obligations Under Securities Lending $ 65,504 $ - $ 190 $ 65,694 Total Liabilities 65,504 - 190 65,694 neT PoSITIon Net Position Restricted for Pensions 2,299,890 190,554 - 2,490,444 Net Position Restricted for OPEB - - 17,578 17,578 Total Net Position 2,299,890 190,554 17,578 2,508,022 Total Liabilities and Net Position $ 2,365,394 $ 190,554 $ 17,768 $ 2,573,716 -- 150 of 220 -- ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 151 City of Tallahassee COmBInIng FInAnCIAL STATEmEnTS See Independent Auditors’ Report Combining Statement of Changes in net Position Pension and Other Employee Benefit Trust Funds For the Fiscal Year ended September 30, 2024 (in thousands) Pension Trust Fund Matched Annuity Pension Plan oPeB Trust Total ADDITIonS Contributions Employer $ 43,165 $ 1,110 $ 2,538 $ 46,813 Plan Members 14,090 - - 14,090 Total Contributions 57,255 1,110 2,538 60,903 Investment Income (Loss) From Investment Activities Gain (Loss) on Sale of Investments 127,050 - 128 127,178 Change in Fair Value of Investments 146,990 40,190 3,463 190,643 Interest Income 25,842 4,573 361 30,776 Dividends 20,938 - - 20,938 Total Investment Income (Loss) 320,820 44,763 3,952 369,535 Less Investment Expenses Investment Management Fees 6,695 - 8 6,703 Interest Expense 130 - - 130 Net Income (Loss) from Investment Activities 313,995 44,763 3,944 362,702 From Securities Lending Activities Securities Lending Income 5,253 - - 5,253 Less Securities Lending Expenses Investment Management Fees 5,003 - - 5,003 Net Income (Loss) from Securities Lending Activities 250 - - 250 Total Net Income (Loss) from Investment Activities 314,245 44,763 3,944 362,952 Total Additions 371,500 45,873 6,482 423,855 DeDUCTIonS Benefits 126,825 10,294 2,064 139,183 Refunds of Contributions 1,443 - - 1,443 Administrative Expense 1,204 - - 1,204 Total Deductions 129,472 10,294 2,064 141,830 Change in Net Position 242,028 35,579 4,418 282,025 Net Position - October 1 2,057,862 154,975 13,160 2,225,997 Net Position - September 30 $ 2,299,890 $ 190,554 $ 17,578 $ 2,508,022 -- 151 of 220 -- 152 ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 This Page Intentionally Left Blank -- 152 of 220 -- ANNUAL FINANCIAL REPORT CITY OF ATLANTIS ANNUAL FINANCIAL REPORT RADFORD UNIVERSITY Annual Comprehensive Financial Report CITY OF TALLAHASSEE, FLORIDA Supplemental Information The following schedules provide a summary of the debt service requirements for the City’s outstanding bond issues: ● Capital Refunding Revenue Bonds, Series 2009 ● Capital Bonds, Series 2018 ● Capital Bonds, Series 2021 ● Capital Refunding Bonds, Series 2022 ● Capital Bonds, Series 2024 ● Energy System Refunding Revenue Bonds, Series 2017 ● Energy System Refunding Revenue Bonds, Series 2020 ● Energy System Refunding Revenue Bonds, Series 2023 ● Energy System Refunding Revenue Bonds, Series 2024 ● Consolidated Utility System Revenue Bonds, Series 2018 ● Consolidated Utility System Refunding Revenue Bonds, Series 2020 ● Consolidated Utility System Refunding Revenue Bonds, Series 2023 ● Consolidated Utility System Revenue Bonds, Series 2024 ● Consolidated Utility System Refunding Revenue Bonds, Series 2024A ● Transportation Improvement Bond, Series 2019 -- 153 of 220 -- 154 ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 City of Tallahassee SuppLEmEnTAL InFORmATIOn See Independent Auditors’ Report Сapital Refunding Revenue Bonds, Series 2009 September 30, 2024 (in thousands) Fiscal Year Principal Interest Total 2025 $ 1,150 $ 198 $ 1,348 2026 1,195 155 1,350 2027 1,240 109 1,349 2028 550 76 626 2029 570 55 625 2030 590 34 624 2031 615 11 626 Totals $ 5,910 $ 638 $ 6,548 -- 154 of 220 -- ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 155 City of Tallahassee SuppLEmEnTAL InFORmATIOn See Independent Auditors’ Report Capital Bonds, Series 2018 September 30, 2024 (in thousands) Fiscal Year Principal Interest Total 2025 $ 1,115 $ 1,094 $ 2,209 2026 1,175 1,038 2,213 2027 1,230 979 2,209 2028 1,290 918 2,208 2029 1,355 853 2,208 2030 1,425 785 2,210 2031 1,495 714 2,209 2032 1,570 640 2,210 2033 1,650 561 2,211 2034 1,730 479 2,209 2035 1,820 392 2,212 2036 1,910 301 2,211 2037 2,005 205 2,210 2038 2,105 105 2,210 Totals $ 21,875 $ 9,064 $ 30,939 -- 155 of 220 -- 156 ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 City of Tallahassee SuppLEmEnTAL InFORmATIOn See Independent Auditors’ Report Capital Bonds, Series 2021 September 30, 2024 (in thousands) Fiscal Year Principal Interest Total 2025 $ 885 $ 45 $ 930 2026 900 34 934 2027 910 23 933 2028 920 11 931 Totals $ 3,615 $ 113 $ 3,728 -- 156 of 220 -- ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 157 City of Tallahassee SuppLEmEnTAL InFORmATIOn See Independent Auditors’ Report Capital Refunding Bonds, Series 2022 September 30, 2024 (in thousands) Fiscal Year Principal Interest Total 2025 $ 2,180 $ 889 $ 3,069 2026 2,255 814 3,069 2027 2,335 735 3,070 2028 2,415 654 3,069 2029 2,500 570 3,070 2030 2,590 483 3,073 2031 2,680 393 3,073 2032 2,770 299 3,069 2033 2,870 203 3,073 2034 2,965 103 3,068 Totals $ 25,560 $ 5,143 $ 30,703 -- 157 of 220 -- 158 ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 City of Tallahassee SuppLEmEnTAL InFORmATIOn See Independent Auditors’ Report Capital Bonds, Series 2024 September 30, 2024 (in thousands) Fiscal Year Principal Interest Total 2025 $ 80 $ 3,256 $ 3,336 2026 75 3,252 3,327 2027 85 3,248 3,333 2028 415 3,244 3,659 2029 365 3,223 3,588 2030 380 3,205 3,585 2031 400 3,185 3,585 2032 1,050 3,165 4,215 2033 1,095 3,113 4,208 2034 1,160 3,058 4,218 2035 780 3,000 3,780 2036 820 2,961 3,781 2037 865 2,920 3,785 2038 905 2,877 3,782 2039 2,400 2,832 5,232 2040 2,515 2,712 5,227 2041 2,645 2,586 5,231 2042 2,775 2,454 5,229 2043 2,915 2,315 5,230 2044 3,060 2,169 5,229 2045 5,490 2,016 7,506 2046 5,760 1,742 7,502 2047 6,050 1,454 7,504 2048 6,355 1,151 7,506 2049 6,670 833 7,503 2050 1,810 500 2,310 2051 1,900 409 2,309 2052 1,995 314 2,309 2053 2,095 215 2,310 2054 2,200 110 2,310 Totals $ 65,110 $ 67,519 $ 132,629 -- 158 of 220 -- ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 159 City of Tallahassee SuppLEmEnTAL InFORmATIOn See Independent Auditors’ Report energy System Refunding Revenue Bonds, Series 2017 September 30, 2024 (in thousands) Fiscal Year Principal Interest Total 2025 $ 4,900 $ 6,188 $ 11,088 2026 5,725 5943 11,668 2027 6,000 5,657 11,657 2028 6,350 5,357 11,707 2029 12,500 5,040 17,540 2030 12,500 4,415 16,915 2031 12,500 3,790 16,290 2032 13,500 3,165 16,665 2033 14,500 2,490 16,990 2034 15,000 1,765 16,765 2035 7,520 1,015 8,535 2036 7,000 639 7,639 2037 5,775 289 6,064 Totals $ 123,770 $ 45,753 $ 169,523 -- 159 of 220 -- 160 ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 City of Tallahassee SuppLEmEnTAL InFORmATIOn See Independent Auditors’ Report energy System Refunding Revenue Bonds, Series 2020 September 30, 2024 (in thousands) Fiscal Year Principal Interest Total 2025 $ 10,190 $ 2,090 $ 12,280 2026 10,050 1,580 11,630 2027 10,540 1,077 11,617 2028 11,010 550 11,560 Totals $ 41,790 $ 5,297 $ 47,087 -- 160 of 220 -- ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 161 City of Tallahassee SuppLEmEnTAL InFORmATIOn See Independent Auditors’ Report energy System Refunding Revenue Bonds, Series 2023 September 30, 2024 (in thousands) Fiscal Year Principal Interest Total 2025 $ 6,400 $ 1,484 $ 7,884 2026 6,570 1,307 7,877 2027 6,760 1,124 7,884 2028 6,940 937 7,877 2029 7,135 745 7,880 2030 7,330 547 7,877 2031 7,540 344 7,884 2032 4,890 135 5,025 Totals $ 53,565 $ 6,623 $ 60,188 -- 161 of 220 -- 162 ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 City of Tallahassee SuppLEmEnTAL InFORmATIOn See Independent Auditors’ Report energy System Refunding Revenue Bonds, Series 2024 September 30, 2024 (in thousands) Fiscal Year Principal Interest Total 2025 $ 460 $ 11,287 $ 11,747 2026 1,885 9,937 11,822 2027 1,995 9,842 11,837 2028 2,110 9,743 11,853 2029 11,185 9,637 20,822 2030 13,315 9,078 22,393 2031 10,410 8,412 18,822 2032 8,415 7,891 16,306 2033 13,535 7,471 21,006 2034 10,515 6,794 17,309 2035 19,270 6,268 25,538 2036 21,130 5,305 26,435 2037 16,630 4,248 20,878 2038 17,465 3,417 20,882 2039 18,335 2,543 20,878 2040 19,255 1,627 20,882 2041 6,480 664 7,144 2042 6,800 340 7,140 Totals $ 199,190 $ 114,504 $ 313,694 -- 162 of 220 -- ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 163 City of Tallahassee SuppLEmEnTAL InFORmATIOn See Independent Auditors’ Report Consolidated Utility System Revenue Bonds, Series 2018 September 30, 2024 (in thousands) Fiscal Year Principal Interest Total 2025 $ 1,840 $ 1,803 $ 3,643 2026 1,930 1,711 3,641 2027 2,030 1,614 3,644 2028 2,130 1,513 3,643 2029 2,235 1,406 3,641 2030 2,345 1,294 3,639 2031 2,465 1,177 3,642 2032 2,590 1,054 3,644 2033 2,715 924 3,639 2034 2,855 789 3,644 2035 2,995 646 3,641 2036 3,145 496 3,641 2037 3,305 339 3,644 2038 3,470 174 3,644 Totals $ 36,050 $ 14,940 $ 50,990 -- 163 of 220 -- 164 ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 City of Tallahassee SuppLEmEnTAL InFORmATIOn See Independent Auditors’ Report Consolidated Utility System Refunding Revenue Bonds, Series 2020 September 30, 2024 (in thousands) Fiscal Year Principal Interest Total 2025 $ 2,675 $ 274 $ 2,949 2026 2,810 141 2,951 Totals $ 5,485 $ 415 $ 5,900 -- 164 of 220 -- ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 165 City of Tallahassee SuppLEmEnTAL InFORmATIOn See Independent Auditors’ Report Consolidated Utility System Refunding Revenue Bonds, Series 2023 September 30, 2024 (in thousands) Fiscal Year Principal Interest Total 2025 $ 3,040 $ 918 $ 3,958 2026 3,130 830 3,960 2027 3,215 740 3,955 2028 3,370 647 4,017 2029 3,530 549 4,079 2030 3,700 447 4,147 2031 2,015 341 2,356 2032 2,175 282 2,457 2033 2,350 219 2,569 2034 2,530 151 2,681 2035 2,710 78 2,788 Totals $ 31,765 $ 5,202 $ 36,967 -- 165 of 220 -- 166 ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 City of Tallahassee SuppLEmEnTAL InFORmATIOn See Independent Auditors’ Report Consolidated Utility System Revenue Bonds, Series 2024 September 30, 2024 (in thousands) Fiscal Year Principal Interest Total 2025 $ 1,760 $ 2,233 $ 3,993 2026 1,845 2,145 3,990 2027 1,935 2,053 3,988 2028 2,035 1,956 3,991 2029 2,130 1,854 3,984 2030 2,240 1,748 3,988 2031 2,350 1,636 3,986 2032 2,470 1,518 3,988 2033 2,595 1,395 3,990 2034 2,725 1,265 3,990 2035 2,860 1,129 3,989 2036 3,000 986 3,986 2037 3,150 836 3,986 2038 3,305 678 3,983 2039 815 513 1,328 2040 855 472 1,327 2041 900 429 1,329 2042 945 384 1,329 2043 990 337 1,327 2044 1,040 288 1,328 2045 1,095 236 1,331 2046 1,150 181 1,331 2047 1,205 123 1,328 2048 1,265 63 1,328 Totals $ 44,660 $ 24,458 $ 69,118 -- 166 of 220 -- ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 167 City of Tallahassee SuppLEmEnTAL InFORmATIOn See Independent Auditors’ Report Consolidated Utility System Refunding Revenue Bonds, Series 2024A September 30, 2024 (in thousands) Fiscal Year Principal Interest Total 2025 $ 4,300 $ 9,050 $ 13,350 2026 4,520 8,835 13,355 2027 7,700 8,609 16,309 2028 8,020 8,224 16,244 2029 8,365 7,823 16,188 2030 8,715 7,404 16,119 2031 10,940 6,969 17,909 2032 11,380 6,422 17,802 2033 11,840 5,853 17,693 2034 12,315 5,261 17,576 2035 12,830 4,645 17,475 2036 16,265 4,003 20,268 2037 17,075 3,190 20,265 2038 17,930 2,336 20,266 2039 25,125 1,440 26,565 2040 3,675 184 3,859 Totals $ 180,995 $ 90,248 $ 271,243 -- 167 of 220 -- 168 ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 City of Tallahassee SuppLEmEnTAL InFORmATIOn See Independent Auditors’ Report Transportation Improvement Bond, Series 2019 September 30, 2024 (in thousands) Fiscal Year Principal Interest Total 2025 $ 907 $ 86 $ 993 2026 928 65 993 2027 949 44 993 2028 970 22 992 Totals $ 3,754 $ 217 $ 3,971 -- 168 of 220 -- ANNUAL FINANCIAL REPORT CITY OF ATLANTIS ANNUAL FINANCIAL REPORT RADFORD UNIVERSITY Annual Comprehensive Financial Report CITY OF TALLAHASSEE, FLORIDA STATISTICAL SECTION -- 169 of 220 -- 170 ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 CITY OF TALLAHASSEE, FLORIDA Statistical Section Sources: Unless otherwise noted, the information in these schedules is derived from the City’s Annual Comprehensive Financial Reports for the relevant year. This part of the City’s Annual Comprehensive Financial Report presents detailed information as a context for understanding what the information in the financial statements, notes disclosures, and required supplementary information says about the City’s overall financial health. Contents Page Financial Trends These schedules contain trend information to help the reader understand how the City’s financial performance and well-being have changed over time. Net Position by Component 172 Changes in Net Position 173 Fund Balances, Governmental Funds 176 Changes in Fund Balances, Governmental Funds 177 Revenue Capacity These schedules contain information to help the reader assess the City’s most significant revenue source, the property tax. Assessed Value and Estimated Actual Value of Taxable Property 178 Direct and Overlapping Property Tax Rates 179 Principal Property Taxpayers 180 Property Tax Levies and Collections 181 Assessed Valuations, Millage and Taxes Levied and Collected 182 Debt Capacity These schedules present information to help the reader assess the affordability of the City’s current levels of outstanding debt and the Agency’s ability to issue additional debt in the future. Ratios of Outstanding Debt by Type 183 Ratios of General Bonded Debt Outstanding 184 Direct and Overlapping Governmental Activities Debt 185 Computation of Legal Debt Margin 186 Revenue Bond Coverage: Energy System Revenue Bonds 187 Consolidated System Utility Revenue Bonds 188 -- 170 of 220 -- ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 171 CITY OF TALLAHASSEE, FLORIDA Statistical Section Sources: Unless otherwise noted, the information in these schedules is derived from the City’s Annual Comprehensive Financial Reports for the relevant year. Contents Page Demographic and economic Information These schedules offer demographic and economic indicators to help the reader understand the environment within which the City’s financial activities take place. Demographic Statistics 189 Principal Employers 190 operating Information These schedules contain service and infrastructure data to help the reader understand how the information in the City’s financial report relates to the services the City provides and the activities it performs. Full-time Equivalent City Government Employees by Function/Program 191 Operating Indicators by Function/Program 192 Capital Assets Statistics by Function/Program 193 Miscellaneous Statistical Data 194 Schedule of Insurance 195 -- 171 of 220 -- 172 ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 City of Tallahassee STATISTICAL Se CTI on City of Tallahassee STATISTICAL SECTIO n See Independent Auditors’ Report net Position by Component Last Ten Fiscal Years (accrual basis of accounting) (in thousands) 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015 Governmental activities Net Investment in Capital Assets $ 560,847 $ 696,039 $ 652,995 $ 683,773 $ 718,180 $ 731,038 $ 729,969 $ 762,798 $ 729,307 $ 742,216 Restricted 179,073 96,363 94,221 93,264 82,797 83,814 114,361 100,167 99,999 99,012 Unrestricted (128,678) (164,917) (124,652) (164,776) (150,599) (113,386) (121,288) (65,648) (56,664) (56,651) Total governmental activities net position $ 611,242 $ 627,485 $ 622,564 $ 612,261 $ 650,378 $ 701,466 $ 723,042 $ 797,317 $ 772,642 $ 784,577 Business activities Net Investment in Capital Assets $ 927,864 $ 884,406 $ 829,331 $ 866,359 $ 895,189 $ 899,679 $ 884,077 $ 863,179 $ 840,415 $ 809,395 Restricted 292,847 288,277 263,086 233,085 195,053 231,785 219,942 202,210 194,185 201,116 Unrestricted 145,483 140,128 159,214 162,577 194,659 170,891 152,743 198,232 199,519 202,099 Total Business activities net position $ 1,366,194 $ 1,312,811 $ 1,251,631 $ 1,262,021 $ 1,284,901 $ 1,302,355 $ 1,256,762 $ 1,263,621 $ 1,234,119 $ 1,212,610 Primary government Net Investment in Capital Assets $ 1,488,711 $ 1,580,445 $ 1,482,326 $ 1,550,132 $ 1,613,369 $ 1,630,717 $ 1,614,046 $ 1,625,977 $ 1,569,722 $ 1,551,611 Restricted 471,920 384,640 357,307 326,349 277,850 315,599 334,303 302,377 294,184 300,128 Unrestricted 16,805 (24,789) 34,562 (2,199) 44,060 57,505 31,455 132,584 142,855 145,448 Total primary government net position $ 1,977,436 $ 1,940,296 $ 1,874,195 $ 1,874,282 $ 1,935,279 $ 2,003,821 $ 1,979,804 $ 2,060,938 $ 2,006,761 $ 1,997,187 -- 172 of 220 -- ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 173 City of Tallahassee STATISTICAL Se CTI on City of Tallahassee STATISTICAL SECTIO n See Independent Auditors’ Report Changes in net Position Last of Ten Fiscal Years (accrual basis of accounting) (in thousands) 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015 Expenses Governmental Activities: General Government $ 39,794 $ 28,106 $ 21,134 $ 37,418 $ 43,265 $ 32,747 $ 21,049 $ 26,625 $ 15,295 $ 32,352 Public Safety 99,454 75,137 64,359 92,546 95,816 70,088 55,737 77,197 68,901 61,703 Transportation 31,420 24,746 16,628 18,692 23,029 24,197 42,106 20,164 20,530 19,928 Human Services 17,782 15,126 13,436 10,398 9,073 4,893 4,971 4,652 3,565 3,097 Economic Development 11,229 19,538 2,630 15,709 10,933 6,587 6,956 7,238 8,996 7,337 Physical Environment 20,153 6,486 5,691 6,683 7,217 16,786 5,530 7,693 7,943 1,489 Culture and Recreation 29,839 24,958 23,637 21,187 22,188 26,536 24,331 27,620 26,396 22,289 Unallocated Depreciation on Infrastructure 35,835 35,525 35,031 34,173 33,277 32,395 31,810 28,297 29,228 27,477 RTU Amortization Expense 282 279 284 - - - - - - - SBITA Amortization Expense 214 247 - - - - - - - - Interest on Long-Term Debt 4,935 3,472 3,563 3,542 3,890 4,635 3,610 3,572 4,058 4,966 Total governmental activities expenses 290,937 233,620 186,393 240,348 248,688 218,864 196,100 203,058 184,912 180,638 Business-type activities Electric 290,774 283,254 292,336 252,323 272,743 252,552 240,872 228,137 247,370 248,266 Gas 23,706 23,558 24,611 21,751 21,927 21,741 21,019 20,962 20,744 28,480 Sewer 82,440 78,491 74,193 77,383 83,571 52,753 76,701 51,629 53,274 46,804 Water 44,881 42,121 40,512 40,472 36,486 36,345 31,888 32,093 29,401 24,770 Airport 24,457 22,249 21,163 20,658 20,784 19,851 18,517 18,053 16,885 19,120 StarMetro 34,438 35,100 30,007 27,085 26,962 23,869 21,547 20,753 22,018 21,397 Solid Waste 43,864 32,288 28,876 29,798 27,654 26,441 24,551 21,285 20,874 20,700 Golf 1,234 1,394 1,279 1,057 926 968 1,271 864 927 973 Stormwater Management 22,571 20,842 20,186 20,965 14,886 19,618 16,893 15,440 14,944 14,837 Fire Services 54,880 52,308 50,547 48,090 48,437 45,836 43,698 42,475 40,797 36,787 Total business-type activities expenses 623,245 591,605 583,710 539,582 554,376 499,974 496,957 451,691 467,234 462,134 Total primary government expenses $ 914,182 $ 825,225 $ 770,103 $ 779,930 $ 803,064 $ 718,838 $ 693,057 $ 654,749 $ 652,146 $ 642,772 -- 173 of 220 -- 174 ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 City of Tallahassee STATISTICAL Se CTI on City of Tallahassee STATISTICAL SECTIO n See Independent Auditors’ Report Changes in net Position Last of Ten Fiscal Years (accrual basis of accounting) (in thousands) 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015 Program Revenues Governmental Activities: Charges for Services: General Government $ 3,302 $ 2,470 $ 2,360 $ 2,259 $ 2,293 $ 2,310 $ 2,230 $ 2,991 $ 2,520 $ 2,192 Public Safety 1,631 1,435 1,623 1,263 1,537 1,261 1,876 2,026 2,051 2,487 Transportation 5,130 3,515 4,082 3,181 3,388 2,961 2,572 2,550 2,698 2,540 Human Services 1,509 1,377 1,143 1,143 1,745 1,421 1,072 953 1,022 965 Economic Development 342 288 224 56 3 8 11 10 14 - Physical Environment 2,843 2,251 2,642 2,286 1,072 1,323 1,133 1,174 1,004 1,187 Culture and Recreation 4,595 4,449 3,971 3,125 2,598 3,846 3,755 3,745 3,903 3,956 Operating Grants and Contributions 24,534 23,339 13,485 20,234 13,251 7,173 4,384 10,270 8,250 1,549 Capital Grants and Contributions 4,988 4,393 3,609 5,118 4,243 1,160 - - - 13 Total Governmental Activities Program Revenues 48,874 43,517 33,139 38,665 30,130 21,463 17,033 23,719 21,462 14,889 Business-type Activities: Charges for Services: Electric 316,297 314,398 322,217 275,631 271,250 284,736 281,375 269,704 268,262 286,271 Gas 31,225 32,058 32,228 27,034 27,035 26,984 29,122 25,889 26,963 34,564 Sewer 82,265 87,647 79,708 73,002 71,413 69,325 68,180 63,351 61,759 62,184 Water 47,211 49,142 44,303 40,725 41,481 38,226 35,293 34,342 33,290 30,787 Airport 17,613 16,406 15,164 11,396 11,012 14,466 13,176 13,241 14,090 12,840 StarMetro 6,904 7,524 6,075 4,261 4,048 4,757 5,786 5,007 5,548 4,705 Solid Waste 38,233 34,587 32,327 31,144 29,393 25,686 24,674 24,215 22,508 23,553 Golf 1,387 1,533 1,608 1,146 759 955 765 794 786 771 Stormwater Management 24,136 24,267 20,871 21,043 21,110 22,722 19,250 18,198 17,946 18,380 Fire Services 55,724 53,693 52,853 46,310 45,553 45,239 43,021 42,777 41,469 32,772 Operating Grants and Contributions 6,166 21,114 9,346 8,390 26,101 4,620 4,853 4,825 8,977 5,465 Capital Grants and Contributions 24,902 37,374 37,099 15,160 15,496 10,332 14,251 13,347 12,865 16,395 Total Business-type Activities Program Revenues 652,063 679,743 653,799 555,242 564,651 548,048 539,746 515,690 514,463 528,687 Total Primary Government Program Revenues $ 700,937 $ 723,260 $ 686,938 $ 593,907 $ 594,781 $ 569,511 $ 556,779 $ 539,409 $ 535,925 $ 543,576 Net (Expenses) Revenues Governmental Activities $ (242,063) $ (190,103) $ (153,254) $ (201,683) $ (218,558) $ (197,401) $ (179,067) $ (179,339) $ (163,450) $ (165,749) Business-Type Activities 28,818 88,138 70,089 15,660 10,275 48,074 42,789 63,999 47,229 66,553 Total Primary Government Net Expenses $ (213,245) $ (101,965) $ (83,165) $ (186,023) $ (208,283) $ (149,327) $ (136,278) $ (115,340) $ (116,221) $ (99,196) -- 174 of 220 -- ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 175 City of Tallahassee STATISTICAL Se CTI on City of Tallahassee STATISTICAL SECTIO n See Independent Auditors’ Report Changes in net Position Last of Ten Fiscal Years (accrual basis of accounting) (in thousands) 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015 General Revenues and Other Changes in Net Position Governmental Activities: Property Taxes, Levied for General Purposes $ 67,247 $ 57,918 $ 51,416 $ 50,169 $ 47,198 $ 44,152 $ 41,485 $ 39,430 $ 38,908 $ 32,947 Public Service Tax 28,005 25,720 24,756 24,432 24,385 24,263 23,692 22,812 22,950 23,728 Permits and Fees 6,641 6,097 4,291 3,582 3,484 4,229 4,441 5,817 6,182 5,101 Grants and Contributions Not Restricted to Specific Programs 41,770 40,968 40,335 35,095 35,173 33,306 32,478 85,024 30,154 28,304 Unrestricted Investment Earnings 4,848 2,740 1,186 1,997 3,062 3,352 2,763 2,438 3,204 3,044 Net Securities Lending Income 13 5 6 3 3 2 2 2 5 - Net Increase (Decrease) in Fair Value of Investments 2,340 325 (3,231) (619) 450 1,248 (806) (526) 178 14 Miscellaneous 22,214 14,040 3,943 7,834 3,844 7,781 8,828 14,251 14,475 7,634 Transfers 52,742 47,211 40,855 41,073 57,371 56,756 36,971 34,766 35,459 33,075 Total Governmental Activities 225,820 195,024 163,557 163,566 174,970 175,089 149,854 204,014 151,515 133,847 Business-Type Activities: Grants and Contributions, not restricted to specific programs 4,445 2,078 2,008 2,008 2,004 1,997 1,989 1,983 1,985 Unrestricted Investment Earnings 18,492 10,783 2,436 6,430 14,063 12,415 7,234 5,539 7,525 6,684 Net Securities Lending Income 108 58 19 12 14 10 7 5 11 - Net Increase (Decrease) in Fair Value of Investments 33,059 4,367 (46,942) (6,544) 5,856 16,446 (8,700) (3,418) 739 52 Miscellaneous 21,203 2,967 2,855 627 205 1,856 23,655 (337) 1,094 19 Transfers (52,742) (47,211) (40,855) (41,073) (57,371) (56,756) (36,971) (34,766) (35,459) (33,075) Total Business-type Activities 24,565 (26,958) (80,479) (38,540) (35,229) (24,032) (12,786) (30,994) (24,105) (26,320) Total Primary Government $ 250,385 $ 168,066 $ 83,078 $ 125,026 $ 139,741 $ 151,057 $ 137,068 $ 173,020 $ 127,410 $ 107,527 Change in Net Position Governmental Activities $ (16,243) $ 4,921 $ 10,303 $ (38,117) $ (43,588) $ (22,312) $ (29,213) $ 24,675 $ (11,935) $ (31,902) Business Activities 53,383 61,180 (10,390) (22,880) (24,954) 24,042 30,003 33,005 23,124 40,233 Total Primary Government $ 37,140 $ 66,101 $ (87) $ (60,997) $ (68,542) $ 1,730 $ 790 $ 57,680 $ 11,189 $ 8,331 -- 175 of 220 -- 176 ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 City of Tallahassee STATISTICAL Se CTI on City of Tallahassee STATISTICAL SECTIO n See Independent Auditors’ Report Fund Balances, Governmental Funds Last Ten Fiscal Years (accrual basis of accounting) (in thousands) 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015 General Fund Nonspendable $ 1,962 $ 1,661 $ 1,553 $ 1,241 $ 1,154 $ 1,500 $ 1,186 $ 1,147 $ 1,513 $ 809 Spendable: Committed 27,243 25,070 21,033 21,011 16,846 - 23,306 26,492 25,251 25,420 Assigned 2,755 1,150 251 2,012 2,578 - 3,076 5,192 2,479 2,479 Unassigned 1,207 2,271 1,972 2,565 2,481 1,541 804 2,952 6,544 1,041 Total General Fund $ 33,167 $ 30,152 $ 24,809 $ 26,829 $ 23,059 $ 3,041 $ 28,372 $ 35,783 $ 35,787 $ 29,749 All Other Governmental Funds Unreserved, reported in: Non-Spendable $ - $ 11,960 $ 503 $ 205 $ - $ 594 $ - $ 620 $ 584 $ 580 Spendable: Restricted 60,613 39,260 48,743 54,465 44,290 59,785 58,904 39,487 39,331 44,722 Committed 89,775 29,725 27,737 27,826 16,033 21,256 25,322 23,160 24,227 23,715 Assigned - - - - - - 1,990 57 161 - Unassigned (2,845) (14,734) (6,916) (1,172) (613) - 283 1,060 (91) (148) Total all Other Governmental Funds $ 147,543 $ 66,211 $ 70,067 $ 81,324 $ 59,710 $ 81,635 $ 86,499 $ 64,384 $ 64,212 $ 68,869 Note: In accordance with requirements of GASB Statement 54, which was effective for periods beginning after June 15, 2010, fund balances are classified based primarily on the extent to which the government is bound to honor constraints on the specific purposes for which amounts in those funds can be spent. -- 176 of 220 -- ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 177 City of Tallahassee STATISTICAL Se CTI on City of Tallahassee STATISTICAL SECTIO n See Independent Auditors’ Report Changes in Fund Balances, Governmental Funds Last Ten Fiscal Years (modified accrual basis of accounting) (in thousands) 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015 Revenues Taxes $ 95,252 $ 83,632 $ 76,170 $ 74,602 $ 71,582 $ 68,419 $ 65,174 $ 62,243 $ 61,858 $ 56,675 Licenses and Permits 9,502 8,375 6,964 5,819 4,455 5,574 5,576 6,978 7,168 6,176 Intergovernmental Revenues 70,157 65,906 56,720 59,133 52,907 40,116 42,405 49,151 42,605 33,231 Charges for Services 16,167 14,209 12,640 10,745 9,620 10,044 9,151 8,830 9,385 9,043 Fines and Forfeitures 1,066 923 1,082 879 998 726 826 970 1,119 1,550 Net Investment Earnings 4,681 2,595 1,091 1,956 2,736 3,174 2,602 2,169 2,841 2,847 Securities Lending Income 101 35 15 3 6 8 4 6 11 - Net Inc (Dec) in the Fair Value of Investments 2,221 299 (2,939) (584) 422 1,163 (822) (429) 145 12 Miscellaneous Revenues 13,796 14,166 11,360 10,881 16,881 13,770 13,209 14,889 16,070 15,631 Total Revenues 212,943 190,140 163,103 163,434 159,607 142,994 138,125 144,807 141,202 125,165 Expenditures General Government 33,953 34,371 32,516 40,905 33,918 44,974 28,938 28,611 28,589 30,497 Public Safety 93,491 86,580 83,748 74,633 74,553 70,743 69,665 66,808 64,603 58,615 Transportation 38,874 33,842 34,047 27,996 43,221 35,952 38,194 31,212 32,026 33,231 Human Services 17,394 15,200 14,005 9,690 8,507 4,718 4,954 4,487 3,415 2,955 Economic Environment 11,042 16,735 8,155 15,641 10,903 7,296 8,837 7,178 8,093 7,636 Physical Environment 26,416 6,851 6,590 6,852 6,712 21,843 5,670 9,681 9,515 3,390 Cultural and Recreation 29,782 27,565 23,878 20,479 20,405 25,527 23,948 23,306 23,770 21,986 Securities Lending Expense: Interest 88 28 7 - 1 6 1 2 2 - Agent Fees - 2 - - - - - - 1 - Debt Service: Principal Retired 8,715 8,814 10,215 9,266 8,873 8,189 7,325 8,119 7,530 6,620 Interest and Fiscal Charges 4,211 2,926 4,309 4,339 4,624 5,315 3,948 4,226 4,502 5,324 Bond Issuance Costs - - 40 84 - - 210 5 - - Total Expenditures 263,966 232,914 217,510 209,885 211,717 224,563 191,690 183,635 182,046 170,254 Excess of Revenues Over (Under) Expenditures (51,023) (42,774) (54,407) (46,451) (52,110) (81,569) (53,565) (38,828) (40,844) (45,089) Other Financing Sources (Uses): Transfers In 69,466 64,756 65,909 71,147 86,390 73,682 62,845 60,433 59,942 55,167 Transfers Out (30,038) (23,238) (24,777) (29,959) (28,874) (27,674) (26,383) (24,283) (24,823) (21,426) Sale of Capital Assets 862 2,743 - 3,641 187 4,630 838 2,846 5,370 317 Proceeds from Loans from Other Funds - - 11,260 - - - - 1,736 - Proceeds from Sale of Bonds and Loans 90,110 - - - - - - - - - Premium from Bond Issuance 4,970 - - - - - - - - - Refunding Bond Issue - - - - - - 30,969 - - - Total Other Financing Sources (Uses) 135,370 44,261 41,132 56,089 57,703 50,638 68,269 38,996 42,225 34,058 Net Change in Fund Balances $ 84,347 $ 1,487 $ (13,275) $ 9,638 $ 5,593 $ (30,931) $ 14,704 $ 168 $ 1,381 $ (11,031) Debt Services as a Percentage of Noncapital Expenditures 5.32% 5.54% 6.99 % 6.78 % 6.73 % 5.62 % 6.60 % 10.05 % 7.22 % 7.12 % -- 177 of 220 -- 178 ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 City of Tallahassee STATISTICAL SECTIOn See Independent Auditors’ Report Assessed Value and estimated Actual Value of Taxable Property Last Ten Fiscal Years (in thousands) Fiscal Year Real Property Personal Property Centrally Assessed Property Less: Tax- exempt Property Total Taxable Assessed Value (1) Total Direct Tax Rate estimated Actual Taxable Value (2) Taxable Assessed Value as a Percentage of Actual Taxable Value (3) 2015 $ 15,242,081 $ 1,696,448 $ 6,113 $ 7,718,416 $ 9,226,226 3.70% $ 19,934,875 46.28% 2016 15,744,126 1,701,380 6,175 7,857,175 9,594,506 4.20 20,531,389 46.73 2017 16,904,533 1,637,177 6,532 8,074,382 10,473,860 4.10 21,821,461 48.00 2018 16,898,065 1,635,772 6,447 8,077,231 10,463,053 4.10 21,812,098 47.97 2019 18,947,903 1,732,595 6,539 8,741,897 11,945,140 4.10 24,337,690 49.08 2020 20,053,175 1,731,585 2,647 9,059,939 12,727,468 4.10 21,787,407 58.42 2021 20,954,844 1,748,069 2,706 9,442,398 13,263,221 4.10 26,712,493 49.65 2022 23,273,656 1,773,526 2,086 10,562,193 14,487,075 4.10 29,470,575 49.16 2023 25,971,668 1,857,123 2,847 12,134,580 15,697,058 4.10 23,656,892 66.35 2024 27,804,144 1,914,091 3,004 12,661,980 17,059,259 4.45 25,263,053 67.53 Source: Leon County Property Appraiser Note: Assessed values are determined as of January 1 for each fiscal year. (1) Total assessed values less exemptions (2) Estimated actual value is based on the assumption that the assessed values is 85% of the actual value. (3) Calculated Figure -- 178 of 220 -- ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 179 City of Tallahassee STATISTICAL SECTIOn See Independent Auditors’ Report Direct and overlapping Property Tax Rates Last Ten Fiscal Years (Rate per 1,000 of assessed value) Direct overlapping City of Tallahassee Leon County School Board Leon County n.W . Fla Water Management Fiscal Year operating operating Debt Service operating operating Total 2015 3.70 7.38 - 8.31 0.04 19.43 2016 4.20 7.20 - 8.81 0.04 20.25 2017 4.10 6.85 - 8.31 0.04 19.30 2018 4.10 6.34 - 8.31 0.04 18.79 2019 4.10 6.17 - 8.31 0.04 18.62 2020 4.10 6.17 - 8.31 0.04 18.62 2021 4.10 6.25 - 8.31 0.03 18.69 2022 4.10 5.84 - 8.31 0.03 18.28 2023 4.10 5.81 - 8.31 0.02 18.59 2024 4.45 5.46 - 8.31 0.02 18.24 Source: Leon County Tax Collector -- 179 of 220 -- 180 ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 City of Tallahassee STATISTICAL SECTIOn See Independent Auditors’ Report Principal Property Taxpayers Current Year and nine Years Ago (in thousands) 2024 2015 Tax payer Type of Business Taxable Assessed Value Rank Percentage of Total Taxable Assessed Value Taxable Assessed Value Rank Percentage of Total City Taxable Assessed Value Smith Interest General Partnership Retail $ 166,707 1 0.98% $ 124,943 2 1.35% 510 West Virginia Street Real Estate 83,758 2 0.49 - - Tallahassee Medical Center, Inc. Medical 79,017 3 0.46 67,950 4 0.74 District Joint Venture, LLC Real Estate 76,212 4 0.45 - - Campbell Tallahassee, LLC Real Estate 62,432 5 0.37 - Grove Park Apartments, LLC Real Estate 61,299 6 0.36 - - Woodlands of Tallahassee Real Estate 57,956 7 0.34 0 Tallahassee-Westcott, LLC Real Estate 57,943 8 0.34 - - Quantum LL, LLC Finacial Services 1,164 9 0.01 - Florida Power & Light Utilities 124 10 - - - Talquin Electric Cooperative Utilities - - 62,671 5 0.68 Comcast Cablevision, Inc. Communications - - 43,473 9 0.47 DRA CRT Tallahassee Centre Retail - - 56,733 6 0.61 St. Joe Company Real Estate - - 44,365 8 0.48 Century Link (Embarq, Sprint) Communications - 128,568 1 1.39 Bainbridge Campus Apartments Real Estate - - 41,161 10 0.45 Florida Gas Transmission Company Utilities - - 75,854 3 0.82 Walmart Retail - - 50,047 7 0.54 Total $ 646,612 3.31% $ 695,765 7.53% Source: Leon County Tax Collector -- 180 of 220 -- ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 181 City of Tallahassee STATISTICAL SECTIOn See Independent Auditors’ Report Property Tax Levies and Collections Last Ten Fiscal Years (in thousands) Collected within the Fiscal Year of the Levy Total Collections to Date Fiscal Year ended September 30, Total Tax Levy Fiscal Year Amount Percentage of Levy Collections in Subsequent Years Amount Percentage of Levy 2015 $ 34,392 $ 32,891 95.6% $ 47 $ 32,938 95.8% 2016 40,352 38,837 96.2 - 38,837 96.2 2017 40,857 39,628 97.0 71 39,699 97.2 2018 42,942 41,410 96.4 72 41,482 96.6 2019 45,712 44,123 96.5 29 44,152 96.6 2020 48,975 47,197 96.4 13 47,210 96.4 2021 52,075 50,042 96.1 27 50,069 96.1 2022 54,379 52,254 96.1 29 52,283 96.1 2023 59,297 57,039 96.2 32 57,071 96.2 2024 69,852 67,206 96.2 41 67,247 96.3 Source: Leon County Property Appraiser Note: Assessed values are determined as of January 1 for each fiscal year. (1) Total assessed values less exemptions (2) Estimated actual value is based on the assumption that the assessed values is 85% of the actual value. (3) Calculated Figure -- 181 of 220 -- 182 ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 City of Tallahassee STATISTICAL Se CTI on City of Tallahassee STATISTICAL SECTIO n See Independent Auditors’ Report Assessed Valuations, Millage, and Taxes Levied and Collected Last Ten Fiscal Years (in thousands) 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015 Total Valuations $29,721,239 $27,831,638 $25,049,989 $22,705,619 $21,787,407 $20,687,037 $18,540,284 $18,548,241 $17,451,681 $ 16,944,644 Exemptions Agricultural Adjustment 88,379 84,842 83,771 79,918 64,748 44,422 46,859 46,859 49,272 42,463 Government Exemption 6,511,950 6,097,813 5,765,135 5,557,954 5,498,771 5,291,477 5,042,044 5,040,624 4,963,425 4,839,361 Institutional Exemption 1,162,263 1,044,324 1,000,453 848,798 776,875 740,842 629,419 631,059 616,233 667,825 Individual/Homestead Exemptions 1,527,910 1,508,662 1,459,440 1,455,966 1,421,990 1,394,483 1,347,750 1,347,729 1,322,310 1,319,847 Other Exemptions & Adjustments 3,371,478 3,398,939 2,253,395 1,499,762 1,297,554 1,270,673 1,011,159 1,008,110 905,934 848,920 Total Exemption and Adjustments 12,661,980 12,134,580 10,562,194 9,442,398 9,059,938 8,741,897 8,077,231 8,074,381 7,857,174 7,718,416 Taxable Valuation 17,059,259 15,697,058 14,487,795 13,263,221 12,727,469 11,945,140 10,463,053 10,473,860 9,594,507 9,226,228 Millage Levied 4.450 4.100 4.100 4.100 4.100 4.100 4.100 4.100 4.200 3.700 Total Taxes Levied 75,462 69,916 59,361 52,138 49,015 48,975 42,914 40,857 40,352 34,392 Less: Adjustments & Discount 377 684 615 1,882 1,753 1,644 1,545 1,457 1,433 1,214 Net Taxes Levied $ 75,085 $ 69,232 $ 58,746 $ 50,256 $ 47,262 $ 47,331 $ 41,369 $ 39,400 $ 38,919 $ 33,178 Net Collected (1) (2) $ 67,247 $ 57,071 $ 52,254 $ 50,042 $ 47,197 $ 44,123 $ 41,410 $ 39,431 $ 38,908 $ 32,891 Source: Leon County Property Appraiser (1) Florida Statutes provide for a discount of up to four percent for early payment of ad valorem taxes. All unpaid taxes become delinquent on April 1 and are sold at auction on June 1 of each year as tax certificates. The City, after all tax certificates are sold, has fully collected all ad valorem tax revenues. (2) Net collected includes penalties or late payments. -- 182 of 220 -- ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 183 City of Tallahassee STATISTICAL Se CTI on City of Tallahassee STATISTICAL SECTIO n See Independent Auditors’ Report Ratios of outstanding Debt by Type Last Ten Fiscal Years (in thousands) 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015 Governmental Activities: General Revenue Bonds $ 122,070 $ 65,990 $ 75,205 $ 78,585 $ 87,595 $ 96,215 $ 104,155 $ 83,915 $ 91,825 $ 99,355 Unamortized Premiums/ Discounts 7,951 3,127 8,786 10,230 11,610 12,928 14,143 11,317 12,343 13,107 Bank of America Loan Payable - - 264 525 780 1,033 1,282 1,527 1,736 - Public Improvement Revenue Note 2020 7,310 7,310 7,310 7,310 - - - - - - Public Improvement Revenue Note 2024 25,000 - - - - - - - - - Redevelopment Revenue Note 2,300 2,860 3,410 3,950 - - - - - - Lease Payables 3,963 3,689 4,971 - - - - - - - Subscription Liability 2,955 5,284 - - - - - - - - Total Governmental Activities 171,549 88,260 99,946 100,600 99,985 110,176 119,580 96,759 105,904 112,462 Business-Type Activities: Energy System 418,315 459,650 479,945 498,025 515,690 564,335 582,427 494,988 539,447 557,345 Consolidated Utility System 298,955 287,975 299,060 308,585 318,295 330,350 339,185 330,495 338,180 345,455 Transportation Improvement Bond 3,754 4,641 5,508 6,356 7,185 7,995 - - - - Unamortized Premiums/ Discounts 94,488 67,908 73,386 92,059 96,783 86,236 89,164 52,974 29,857 31,187 AMI Loan Payable - 3,233 6,345 9,335 12,211 14,977 17,639 20,634 23,514 26,282 Bank of America Loan Payable - - 128 254 378 500 621 739 840 - Republic Parking Loan - - - - - 331 367 401 - - Fire Improvement Revenue Note 27,000 - - - - - - - - - Lease Payables 2,668 2,953 - - - - - - - - Subscription Liability 1,544 530 - - - - - - - - Total Business-Type Activities 846,724 826,890 864,372 914,614 950,542 1,004,724 1,029,403 900,231 931,838 960,269 Total Primary Government $ 1,018,273 $ 915,150 $ 964,318 $ 1,015,214 $ 1,050,527 $ 1,114,900 $ 1,148,983 $ 996,990 $ 1,037,742 $ 1,072,731 Per Capita $ 5,000 $ 4,531 $ 4,815 $ 5,118 $ 5,289 $ 5,697 $ 5,258 $ 5,249 $ 5,471 $ 5,595 -- 183 of 220 -- 184 ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 City of Tallahassee STATISTICAL SECTIOn See Independent Auditors’ Report Ratios of General Bonded Debt outstanding For the Fiscal Year ended September 30, 2024 Last Ten Fiscal Years (in thousands) Fiscal Year ended Sept. 30 General Revenue Bonds Percentage of Actual Taxable Value of Property (1) Per Capita (2) 2015 $ 99,355 0.50 $ 528 2016 91,825 0.45 484 2017 83,915 0.38 443 2018 104,155 0.54 615 2019 96,215 0.45 558 2020 87,595 0.46 499 2021 78,585 0.29 396 2022 75,205 0.26 375 2023 65,990 0.28 327 2024 122,070 0.48 599 Source: City of Tallahassee, Accounting Services (1) See Assessed Value and Estimated Actual Trend Value of Taxable Property Schedule for Property Value Data. (2) See Demographic and Economic Statistics for Population Data. -- 184 of 220 -- ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 185 City of Tallahassee STATISTICAL SECTIOn See Independent Auditors’ Report Direct and overlapping Governmental Activities Debt September 30, 2024 (in thousands) Government Unit Debt outstanding estimated Percentage Applicable (1) estimated Share of overlapping Debt Debt repaid with property taxes: Leon County School Board (2) $ 91,581 80 $ 73,710 Debt repaid with non self-supporting revenue debt: Leon County (3) 14,653 68 9,964 Subtotal, Overlapping Debt 83,674 City Direct Debt 171,549 100 171,549 Total Direct and Overlapping Debt $ 255,223 (1) The applicable percentage is based on the geographical boundaries within Leon County (2) Leon County School Board (3) Leon County -- 185 of 220 -- 186 ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 City of Tallahassee STATISTICAL SECTIOn See Independent Auditors’ Report Legal Debt Margin September 30, 2024 (in thousands) The City has no legal debt margin requirements set forth by either State Statute or City Ordinance. -- 186 of 220 -- ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 187 City of Tallahassee STATISTICAL SECTIOn See Independent Auditors’ Report Revenue Bond Coverage energy System Revenue Bonds Last Ten Fiscal Years (in thousands) Debt Service Requirements (3) Fiscal Year ending Gross Revenue (1) operating expenses (2) net Revenue Available for Debt Service Principal Interest Total Coverage 2015 $ 314,807 $ 217,485 $ 97,322 $ 11,058 $ 26,703 $ 37,761 2.58 2016 298,689 202,714 95,975 17,898 28,794 46,692 2.06 2017 326,028 170,978 155,050 191,754 25,734 217,488 0.71 2018 314,604 198,297 116,307 17,536 29,854 47,390 2.45 2019 318,751 202,032 116,719 18,092 29,795 47,887 2.44 2020 304,599 203,585 101,014 128,840 29,486 158,326 0.64 2021 301,294 192,562 108,732 17,665 27,582 45,247 2.40 2022 354,134 231,229 122,905 19,925 25,153 45,078 2.73 2023 350,598 231,899 118,699 20,295 24,289 44,584 2.66 2024 355,632 234,312 121,320 21,750 22,834 44,584 2.72 (1) Total operating revenues plus operating interest earned. (2) Total operating expenses exclusive of depreciation and amortization. (3) Includes principal and interest of revenue bonds only. -- 187 of 220 -- 188 ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 City of Tallahassee STATISTICAL SECTIOn See Independent Auditors’ Report Revenue Bond Coverage Consolidated Utility System Revenue Bonds Last Ten Fiscal Years (in thousands) Debt Service Requirements (3) Fiscal Year ending Gross Revenues (1) operating expenses (2) net Revenue Available for Debt Service Principal Interest Total Coverage 2015 $ 101,087 $ 52,429 $ 48,658 $ 6,695 $ 15,747 $ 22,442 2.17 2016 103,063 54,501 48,562 7,275 17,251 24,526 1.98 2017 106,599 59,553 47,046 7,685 16,878 24,563 1.92 2018 112,656 59,843 52,813 151,755 15,008 166,763 0.32 2019 120,573 59,337 61,236 8,835 17,103 25,938 2.36 2020 125,598 66,943 58,655 26,930 16,915 43,845 1.34 2021 127,617 71,207 56,410 9,710 16,211 25,921 2.18 2022 136,955 70,634 66,321 10,390 15,010 25,400 2.61 2023 149,217 79,278 69,939 11,085 14,688 25,773 2.71 2024 155,552 88,486 67,066 11,870 16,928 28,798 2.33 (1) Total operating revenues of the Sewer, Water, and Stormwater Utilities Funds plus operating interest earned. (2) Total operating expenses of water and sewer funds exclusive of depreciation. (3) Includes principal and interest of revenue bonds only. -- 188 of 220 -- ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 189 City of Tallahassee STATISTICAL Se CTI on City of Tallahassee STATISTICAL SECTIO n See Independent Auditors’ Report Demographic Statistics Last Ten Fiscal Years Year estimated (1) Population Airline Passengers electric KWH Sold (000’s) Water Consumed (Gals) (Millions) Gas Used (Cu. Ft.) (Millions) Housing Units Leon County School (2) enrollment 2015 187,996 690,533 2,677,292 8,540 2,930 86,735 34,797 2016 189,675 699,035 2,623,259 8,705 2,719 89,252 33,300 2017 189,625 717,559 2,693,286 9,145 2,705 89,798 33,993 2018 192,381 796,214 2,798,286 8,578 2,916 91,703 34,012 2019 195,713 851,689 2,857,242 8,643 2,953 92,349 34,085 2020 198,627 513,719 2,787,057 10,070 2,767 93,295 34,000 2021 198,371 539,609 2,784,362 9,534 3,006 96,521 32,000 2022 200,289 607,645 2,891,167 8,724 2,912 94,161 33,952 2023 201,997 837,337 3,041,692 9,629 2,803 91,766 32,562 2024 203,650 944,835 3,128,322 10,305 3,096 93,499 31,760 Year City Personal Income (3) (Thousands) Per Capita Personal Income (3) number of Labor Force (4) number of employed (4) numbered of Unemployed (4) Unemployment Rate (Percent) (4) 2015 $ 14,205,240 $ 37,848 99,331 94,321 5,010 5.0 2016 14,725,366 39,168 99,879 94,852 5,027 5.0 2017 15,433,218 40,621 101,300 95,674 5,626 4.0 2018 16,210,788 42,590 101,793 98,162 3,631 3.6 2019 17,078,135 44,586 102,904 99,510 3,394 3.3 2020 18,307,705 47,474 90,583 86,053 4,530 4.7 2021 20,211,955 52,041 99,280 95,606 3,673 3.8 2022 20,471,919 52,359 104,912 101,738 3,174 3.0 2023 N/A N/A 202,142 195,773 6,369 3.2 2024 N/A 55,363 164,208 158,864 5,344 3.3 Source: City records, except as noted. (1)Numbers are estimated by the Bureau of Economic and Business Research, University of Florida (2)Leon County School Board (3)Bureau of Economic Analysis, U.S. Department of Commerce. (4)FloridaJobs.Org N/A - Not Available -- 189 of 220 -- 190 ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 City of Tallahassee STATISTICAL SECTIOn See Independent Auditors’ Report Principal employers Current and nine Years Ago 2024 (1) 2015 (2) Employer Type of Business Number of Employees Rank % age of Total Number of Employees Rank % age of Total State of Florida Government 27,748 1 39.85 19,442 1 35.44 Florida State University Education 15,455 2 22.19 14,378 2 26.22 Tallahassee Memorial Hospital Healthcare 6,000 3 8.61 4,583 4 8.36 Leon County School Board Education 4,300 4 6.17 5,383 3 9.81 City of Tallahassee Government 2,981 5 4.28 2,811 5 5.13 Walmart Stores, Inc. Retail 2,500 7 3.59 - - Publix Super Markets Retail 2,702 6 3.88 2,200 6 4.01 Florida A&M University Education 2,429 8 3.49 1,767 7 3.22 Amazon Retail 2,256 9 3.24 - - Leon County Government 1,807 10 2.59 1,712 8 3.12 Tallahassee State College (3) Education 1,468 11 2.11 1,518 9 2.77 Capital Regional Medical Center Healthcare - 1,051 10 1.92 Total 69,646 100.00 54,845 100.00 Note: In previous years, data was presented for Leon County rather than City of Tallahassee. (1) Data from employers or Website (2) Data from City of Tallahassee CAFR 2015. (3) Formerly known as the “Tallahassee Community College”. -- 190 of 220 -- ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 191 City of Tallahassee STATISTICAL Se CTI on City of Tallahassee STATISTICAL SECTIO n See Independent Auditors’ Report Full-time equivalent City Government employees by Function/Program Last Ten Fiscal Years Function/Program 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015 City Commission & Appointed Officials 123 123 123 123 114 110 111 124 134 134 Administration & Professional Services - 76 75 72 72 70 67 62 184 183 Aviation 57 54 54 54 54 54 55 55 55 53 Communications 9 9 9 9 9 9 9 8 14 14 Customer Services 158 157 162 130 126 130 17 17 1 1 Human Resources & Workforce Development 31 30 30 28 35 35 35 35 - - Technology and Innovations 100 101 101 98 96 99 99 100 - - Real Estate Management 7 7 7 7 8 8 7 11 - - Housing and Community Services 42 42 32 17 17 16 18 20 36 36 Economic Vitality/Minority & Women Business Enterprise - 8 Energy Services - Electric & Gas 330 330 330 330 330 325 328 336 303 302 Emergency Preparedness & Facilities Security 1 1 1 1 3 4 4 5 1 1 Energy Services N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A Environmental Services & Facilities Management - 26 26 23 23 22 22 12 14 14 Ethics 2 2 2 2 2 2 2 N/A 1 N/A Fire 301 301 301 301 300 299 299 297 296 280 Fleet 83 83 84 82 81 82 82 82 80 61 TEMPO - - 10 9 3 - - - - - Growth Management 72 72 72 71 71 77 77 80 63 63 Community Relations 11 11 11 9 9 10 - - - - Parks & Recreation & Neighborhood Affairs 220 220 208 177 180 178 177 173 173 171 Planning/PLACE 23 23 23 24 25 25 25 27 26 26 Police 507 485 485 482 483 483 483 466 466 433 Public Works N/A N/A N/A N/A N/A N/A - - 286 285 Community Beautification & Waste Management 152 152 152 147 146 151 151 148 83 84 Sustainability & Community Prepardeness - - - 15 15 - - - - - StarMetro 144 145 146 140 140 139 140 141 148 170 Utility Services - - - - - - 129 135 148 145 Underground Utilities & Public Infrastructure 506 506 507 505 513 516 514 531 362 361 Total 2,879 2,956 2,951 2,856 2,855 2,852 2,851 2,865 2,874 2,817 Source: City of Tallahassee Budget Note: The City was reorganized in FY 2009, combining some departments and creating new departments. Deleted departments are shown with “0” FTE employees. “N/A” = not applicable -- 191 of 220 -- 192 ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 City of Tallahassee STATISTICAL Se CTI on City of Tallahassee STATISTICAL SECTIO n See Independent Auditors’ Report operating Indicators by Function/Program Last Ten Fiscal Years Function/Program 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015 Police Arrests 5,965 5,989 4,243 3,459 3,145 5,828 6,267 7,044 5,998 5,933 Traffic violations 12,677 12,696 11,654 5,352 5,663 10,990 9,710 15,459 14,716 13,652 Parking violations 16,975 18,192 18,722 13,924 11,144 10,470 13,804 14,891 18,886 15,948 Fire Emergency responses 18,105 34,394 33,739 30,957 27,687 19,789 28,015 27,379 27,849 24,704 Fires reported 1,008 1,092 1,088 906 926 1,041 1,033 989 1,225 1,047 Gas Daily average consumption (MCF) 8,483 7,679 7,978 8,236 7,582 8,090 7,988 7,411 7,450 8,027 Number of service connections 32,453 28,719 34,890 34,342 33,378 32,528 31,471 30,638 30,355 29,659 Water Daily average consumption (MGD) 28 26 24 26 28 27 25 26 26 26 Number of service connections 84,830 81,413 88,183 87,891 87,007 86,299 86,528 84,783 75,334 83,554 Electric Net System Energy Generated (K W H) (Millions) 3,128 3,042 2,891 2,784 2,787 2,857 2,798 2,693 2,630 2,773 Average number residential customers 106,380 101,963 107,327 92,342 91,805 91,125 89,798 89,070 99,793 88,112 Average residential monthly bill 124 124 127 119 117 117 119 108 113 123 Sewage Daily average treatment (MDG) 17 17 17 16 16 19 16 17 17 16 Number of service connections 72,846 71,869 75,927 75,741 74,892 74,146 74,322 72,614 72,070 71,556 Transit Total revenue miles 1,847,243 1,889,745 1,919,608 1,870,628 1,932,618 2,267,715 2,141,697 2,133,772 2,254,316 2,246,364 Passengers trips 2,653,621 2,449,136 2,269,186 1,095,127 2,014,966 3,448,266 3,289,053 3,302,667 3,759,543 4,260,333 Solid Waste Number of customers 73,135 67,581 64,291 65,017 57,389 64,117 61,547 52,528 63,455 63,455 Refuse collected (in tons) 153,647 149,624 152,341 156,743 151,366 153,907 149,560 149,560 139,778 144,488 Recyclables collected (in tons) 10,193 10,668 11,478 12,577 12,337 12,491 13,297 13,297 24,474 24,474 Airport Number of passengers 944,835 835,567 822,709 539,609 513,719 851,689 796,214 717,559 699,035 690,533 Source: Various city departments and Utility Rates Monthly Report (URMR) N/A - Not Available -- 192 of 220 -- ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 193 City of Tallahassee STATISTICAL SECTIOn See Independent Auditors’ Report Capital Asset Statistics by Function/Program Last Ten Fiscal Years Function / Program 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015 Police Stations 1 1 1 1 1 1 1 1 1 1 Vehicular units Marked vehicles 305 305 299 306 356 326 309 300 306 289 Motorcycles 10 9 9 9 9 9 9 9 9 9 Unmarked vehicles 158 157 161 164 167 144 150 152 153 137 Bicycle patrol units 29 29 27 25 25 25 25 16 16 16 Fire stations 16 16 16 16 16 16 16 16 16 16 Gas Gas lines (in miles) 1,000 975 975 963 950 930 923 910 905 885 Plant Capacity (MCF) 24,000 24,000 24,000 24,000 24,000 24,000 24,000 24,000 24,000 24,000 Water Water mains (in miles) 1,247 1,246 1,211 1,211 1,211 1,211 1,211 1,202 1,201 1,212 Deep Wells 27 27 22 27 27 27 27 27 27 27 Plant Capacity (MGD) 79 79 79 79 79 76 76 76 76 74 Electric Generating plants 4 4 4 4 3 3 3 3 3 3 Generating capacity (MW) 799 799 799 799 702 702 711 711 746 746 Transmission lines (in miles) 219 219 219 219 219 219 214 214 214 204 Number of street lights 20,135 20,135 20,073 19,660 19,302 19,302 18,825 18,825 18,710 18,589 Distribution lines (in miles) 2,049 2,049 2,044 2,044 2,023 2,023 1,995 1,995 1,942 2,937 Sewage Number of lift stations 112 112 112 110 110 110 110 107 107 109 Sanitary sewers (in miles) 1,083 1,083 1,077 1,064 1,064 1,059 1,050 1,039 1,039 1,049 Number of disposal plants 1 1 1 1 1 1 1 1 1 1 Capacity of treatment plans (MGD) 27 27 27 27 27 27 27 27 27 27 Transit Bus Plaza 1 1 1 1 1 1 1 1 1 1 Buses 66 55 55 55 55 55 58 65 65 58 Refuse Collection Collection trucks 94 90 83 83 82 73 73 73 69 69 Parks and recreation Community centers and specialty center 12 12 12 12 12 12 11 11 11 11 Summer playgrounds and camps 77 77 65 46 46 46 43 43 43 43 Athletic fields 90 90 86 86 86 86 86 86 86 86 Golf courses 2 2 2 2 2 2 2 2 2 2 Swimming pools 11 11 11 11 11 11 11 11 11 11 Park acreage 3,881 3,881 3,881 3,881 3,881 3,881 3,881 3,881 3,529 3,529 Fitness trails 75 75 75 30 30 30 30 30 30 30 Tennis/racquetball courts 76 76 70 67 67 67 67 67 67 67 Gymnasiums, center sites 9 9 9 9 9 9 7 7 7 7 Gymnasiums, school sites 5 5 5 5 5 5 5 5 4 4 Airport 1 1 1 1 1 1 1 1 1 1 Other public works Traffic signals(1) 85 85 88 85 85 85 73 73 73 73 Source: Various city departments (1) The department did not have asset tracking database prior to FY 04. Only City owned signals are counted. -- 193 of 220 -- 194 ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 City of Tallahassee STATISTICAL Se CTI on City of Tallahassee STATISTICAL SECTIO n See Independent Auditors’ Report Miscellaneous Statistical Data September 30, 2024 Governance education: Date of Incorporation 1825 Number of Public Schools (1) 48 Date Present Charter Adopted 1996 Number of Public School Instructors (1) 1,864 Form of Government: Commission-Manager Number of Public School Students, (PK-12) (1) 32,212 Commission Composed of: Mayor and Four Commissioners Number of Vocational-Technical Schools (1) 3 Terms of Office: Number of Community Colleges 2 Mayor - Five Years (Elected by Tallahassee Citizens) Number of Universities 5 Commissioners - Five Years (Elected by Tallahassee Citizens) Number of College-level Instructors (4) 2,605 Manager (Appointed by Commission) Number of College-level Students (2) 69,262 Transportation: Major Annual events: Airlines, Bus Lines, and Railroad Freight and Passenger Springtime Tallahassee Festival Fourth of July “Celebrate America” Communications: North Florida Fair Newspapers, Radio Stations, Television Stations; Market Days Cable Television and Telephone Service Winter Festival Climate Culture, Recreation, and Health: Average Annual Temperature - in °F 68.5 Conference Center, Civic Center, and Theaters Average Annual Rainfall - in inches 63.5 Seating Capacity (Leon County Civic Center and 13,375 Area - in square miles 104.74 Museums 15 Libraries (including branches) 20 Skating Rinks 2 Golf Courses 11 Hospital Beds (3) 1,038 Source: City of Tallahassee Records except as noted below: (1) Leon County /School Board (2) Tallahassee State College; Florida State University; Florida A & M University (3) Tallahasse Memorial Healthcare and Capital Regional Medical Center (4) Full Time Faculty at Tallahasse State College, Florida State University, and Florida A&M University -- 194 of 220 -- ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 195 City of Tallahassee STATISTICAL Se CTI on City of Tallahassee STATISTICAL SECTIO n See Independent Auditors’ Report Schedule of Insurance September 30, 2024 Line of Coverage Carrier Limits/Coverage Deductible/Retention Effective Expiration Premium Policy # Terrorism Lloyds of London Primary Property Damage: Annual Aggregate - $250,000,000 Liability: Each Claim - $1,000,000 Annual Aggregate - $2,000,000 Biological, Chemical or Nuclear Annual Aggregate - $1,000,000 Excess Property Damage: Annual Aggregate - $100,000,000 excess of $250,000,000 Property Damage - $100,000 Liability - $100,000 $100,000; 72 hour waiting period Per Primary 5/1/2023 5/1/2024 Total Premium Paid $108,737 B0621MCITY006123 Property Factory Mutual Insurance Company- UTILITY ONLY Policy Limit - $1,000,000,000 Total Insurable Value - $1,492,606,732 (as of binding) Automatic Coverage - 90 days, but not to exceed $100,000,000 Computer Systems Non Physical Damage and Data, Programs or Software combined -$1,000,000, Aggregate Earth Movement - $250,000,000, Aggregate Errors and Omissions - $100,000,000 Expediting Costs - $50,000,000 Extra Expense - $50,000,000 Flood - $250,000,000 Service Interruption - Property Damage & Time Element - $25,000,000 Sublimits are noted in the proposal & policies $100,000 - per Occurrence $100,000 - Wastewater Treatment Plant $500,000 - Power Generation Plants $250,000 - Transformers not at Power Generation locations $826,000 - Steam Turbine Generators $1,500,000 - Gas Turbine Generators $500,000 - Flood for property at locations identified in policy Named Storm Deductible per schedule Refer to policy for full explanation of deductibles 5/1/2024 5/1/2025 Premium Resilience Credit Member Credit Total Premium Paid $5,696,261 1131492 -260,937 -521,937 $4,913,450 PROPERTY AmRisc MUNICIPAL ONLY Policy Limit - $250,000,000 Total Insurable Value - $452,161,436 (as of binding) Automatic Coverage - 90 days, but not to exceed $100,000,000 Computer Systems Non Physical Damage and Data, Programs or Software combined -$1,000,000, Aggregate Earth Movement - $250,000,000, Aggregate Errors and Omissions - $100,000,000 Expediting Costs - $50,000,000 Extra Expense - $50,000,000 Flood - $250,000,000 Service Interruption - Property Damage 8 Time Element - $25,000,000 $100,000 - per Occurrence Named Storm Deductible per schedule Refer to policy for full explanation of deductibles 5/1/2023 5/1/2024 Premium $1,610,929 Various Sublimits are noted in the proposal & policies Fine Arts Travelers Property Casualty Company of America Fine Arts Basic Deductible -$1,000 Windstorm Deductible: $1,000 8/19/2024 8/19/2025 Premium $2,987 QT-660-2G88697A-TIL-24 -- 195 of 220 -- 196 ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 City of Tallahassee STATISTICAL Se CTI on City of Tallahassee STATISTICAL SECTIO n See Independent Auditors’ Report Schedule of Insurance September 30, 2024 Line of Coverage Carrier Limits/Coverage Deductible/Retention Effective Expiration Premium Policy # Surety Auto-Owners Insurance Co. James Cooke Bond 9/8/2024 9/8/2025 Premium $259 66117834 Property- Boiler & Machinery Equipment Breakdown Liberty Mutual Blanket Limit: $100,000,000 Property Damage $100,000 Business Income 24 Hours Extra Expense No 5/1/2024 5/1/2025 Premium $26,482 YB2L9L474411014 Property Damage Included Business Income with Extra Airport Operators Liability Global Aerospace Per Occurrence - $100,000,000 Damage to Premises Rented to You - $1,000,000 Personal and Advertising Injury Aggregate - $25,000,000 Products-Completed Operations Aggregate - $100,000,000 Hangarkeepers’ Each Accident - $100,000,000 Hangarkeepers’ Each Aircraft - $100,000,000 Non-Owned Aircraft - $100,000,000 $0 Each Occurrence or Offense Deductible $0 Aggregate Deductible 10/1/2023 10/1/2024 Premium $53,552 15001414 Cyber Liability Amreican International Group/AIG Specialty $1,000,000 - Maximum Aggregate Limit $1,000,000 - Security and Privacy $1,000,000 - Network Interruption Insurance $1,000,000 - Event Management $1,000,000 - Cyber Extortion $1,000,000 - Regulatory Proceedings $350,000 Each Incident 10/1/2023 10/1/2024 Premium $65,126 01-541-52.43 EMS Liability General Star Indemnity Co $6,000,000/$8,000,000 - Professional Liability $1,000,000/$1,000,000 - Abuse Molestation $0 Each Claim 10/1/2023 10/1/2024 Premium $88,201 IJG927317G XS Workers’ Compensation Safety National Casualty Co. Statutory - Workers’ Compensation $1,000,000 - Employers Liability $1,500,000 Per Occurrence Retention 10/1/2023 10/1/2024 Premium $272,929 SP 4067373 Commercial Crime Travelers Casualty and Surety Company of America $1,000,000 - Employee Theft Per Loss Coverage $1,000,000 - Employee theft Per Employee Coverage $1,000,000 - Forgery or Alteration $1,000,000 - On Premises $1,000,000 - In Transit $1,000,000 - Money Orders & Counterfeit Money $1,000,000 - Computer Crime $1,000,000 - Funds Transfer Fraud EXCLUDED - Social Engineering Fraud $100,000 Telecommunication Fraud $25,000 - Personal Accounts Protection $25,000 - Identity Fraud Expense Reimbursement $5,000 - Claim Expense $75,000 $75,000 $75,000 $75,000 $75,000 $75,000 $75,000 $75,000 $75,000 $0 $0 10/1/2023 10/1/2024 Premium $12,114 106175065 -- 196 of 220 -- ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 197 City of Tallahassee STATISTICAL Se CTI on City of Tallahassee STATISTICAL SECTIO n See Independent Auditors’ Report Schedule of Insurance September 30, 2024 Line of Coverage Carrier Limits/Coverage Deductible/Retention Effective Expiration Premium Policy # Firefighter Cancer Benefit CHUBB/ACE American Insurance Co. $25,000 - First Diagnosis Cancer Benefit $75,000 - Cancer Death Benefit $0 10/1/2023 10/1/2024 Premium $53,429 PTP N17937674 Fiduciary Firefighters Travelers Casualty and Surety Company of America $1,000,000 for all Claims Settlement Program Limit of Liability $250,000 HIPAA Limit of Liability $1,000,000 502 (c) Penalties Limit of Liability $250,000 $0 Retention 10/1/2021 10/1/2024 Premium $4,323 106176744 Fiduciary General Employees Travelers Casualty and Surety Company of America $1,000,000 for all Claims Settlement Program Limit of Liability $250,000 HIPAA Limit of Liability $1,000,000 502 (c) Penalties Limit of Liability $250,000 $0 Retention 10/1/2023 10/1/2024 Premium $26,974 106176742 Fiduciary Police Officers Travelers Casualty and Surety Company of America $1,000,000 for all Claims Settlement Program Limit of Liability $250,000 HIPAA Limit of Liability $1,000,000 502 (c) Penalties Limit of Liability $250,000 $1,000 Retention 10/1/2021 10/1/2024 Premium $5,537 106176738 AD&D ACE American Insurance Co. Statutory AD&D Coverage 10/1/2023 10/1/2025 Premium $48,004 ADD N17938459 Total Premiums $7,293,033 This document is intended as a summary of insurance coverages only. Refer to the actual policy for coverage details. -- 197 of 220 -- 198 ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 This Page Intentionally Left Blank -- 198 of 220 -- ANNUAL FINANCIAL REPORT CITY OF ATLANTIS ANNUAL FINANCIAL REPORT RADFORD UNIVERSITY Annual Comprehensive Financial Report CITY OF TALLAHASSEE, FLORIDA SINGLE AUDIT AND OTHER REPORTS -- 199 of 220 -- 200 ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 City of Tallahassee SIngLE AuDIT AnD OTHER REpORTS Forvis Mazars, LLP is an independent member of Forvis Mazars Global Limited 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 Independent Auditor’s Report The Honorable Mayor and City Commission City of Tallahassee, Florida Tallahassee, Florida We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States (Government Auditing Standards), the financial statements of the governmental activities, the business-type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of the City of Tallahassee, Florida (the “City”) as of and for the year ended September 30, 2024 and the related notes to the financial statements, which collectively comprise the City’s basic financial statements, and have issued our report thereon dated April 30, 2025. Report on Internal Control over Financial Reporting In planning and performing our audit of the financial statements, we considered the City’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow manage- ment or employees, in the normal course of performing their assigned functions, to prevent or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or combination of defi- ciencies, in internal control, such that there is a reasonable possibility that a material misstatement of the City’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that have not been identified. -- 200 of 220 -- ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 201 City of Tallahassee SIngLE AuDIT AnD OTHER REpORTS The Honorable Mayor and City Commission City of Tallahassee, Florida Report on Compliance and Other Matters As part of obtaining reasonable assurance about whether the City’s financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, grant agreements and contracts, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. We noted certain matters that we reported to management of the City in a separate letter dated April 30, 2025. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Tallahassee, Florida April 30, 2025 -- 201 of 220 -- 202 ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 City of Tallahassee SIngLE AuDIT AnD OTHER REpORTS Forvis Mazars, LLP is an independent member of Forvis Mazars Global Limited Report on Compliance for Each Major Federal Program, Major State Project, and the Passenger Facility Charge Program and on Internal Control over Compliance and Report on Schedule of Expenditures of Federal Awards and State Financial Assistance and Schedule of Passenger Facility Charges Required by the Uniform Guidance, Chapter 10.550, Rules of the Auditor General, and Passenger Facility Charge Audit Guide for Public Agencies Independent Auditor’s Report The Honorable Mayor and City Commission City of Tallahassee, Florida Tallahassee, Florida Report on Compliance for Each Major Federal Program, Major State Project, and the Passenger Facility Charge Program Opinion on Each Major Federal Program, Major State Project, and the Passenger Facility Charge Program We have audited the compliance of the City of Tallahassee, Florida (the “City”) with the types of compliance requirements described in the U.S. Office of Management and Budget (“OMB”) Compliance Supplement, the requirements described in the Department of Financial Services’ State Projects Compliance Supplement, and the requirements described in the Passenger Facility Charge Audit Guide for Public Agencies issued by the Federal Aviation Administration (the “Guide”) that could have a direct and material effect on each of the City’s major federal programs, major state projects, and the passenger facility charge program for the year ended September 30, 2024. The City’s major federal programs and major state projects are identified in the summary of auditor’s results section of the accompanying Schedule of Findings and Questioned Costs. In our opinion, the City complied, in all material respects, with the types of compliance requirements referred to in the first paragraph that could have a direct and material effect on each of the City’s major federal programs, major state projects, and the passenger facility charge program for the year ended September 30, 2024. Basis for Opinion on Each Major Federal Program, Major State Project, and the Passenger Facility Charge Program We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations, Part 200, Uniform Administrative Requirements, Cost Principles, and the Audit Requirements for Federal Awards (“Uniform Guidance”); and Chapter 10.550, Rules of the Auditor General; and the Guide. Our responsibilities under those standards and the Uniform Guidance are further described in the Auditor’s Responsibilities for the Audit of Compliance section of our report. -- 202 of 220 -- ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 203 City of Tallahassee SIngLE AuDIT AnD OTHER REpORTS The Honorable Mayor and City Commission City of Tallahassee, Florida We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for each major federal program, major state project, and the passenger facility charge program. Our audit does not provide a legal determination of the City’s compliance with the compliance requirements referred to above. Responsibility of Management for Compliance Management is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules, and provisions of contracts or grant agreements applicable to the City’s federal programs, state projects, and the passenger facility charge program. Auditor’s Responsibilities for the Audit of Compliance Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on the City’s compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards, Government Auditing Standards, the Uniform Guidance, Chapter 10.550, Rules of the Auditor General; and the Guide will always detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Noncompliance with the compliance requirements referred to above is considered material if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about the City’s compliance with the requirements of each major federal program, major state project, and the passenger facility charge program as a whole. In performing an audit in accordance with generally accepted auditing standards, Government Auditing Standards, Uniform Guidance, Chapter 10.550, Rules of the Auditor General, and the Guide, we: • Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material noncompliance, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the City’s compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances. • Obtain an understanding of the City’s internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances and to test and report on internal control over compliance in accordance with the Uniform Guidance, Chapter 10.550, Rules of the Auditor General, and the Guide, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control over compliance. Accordingly, no such opinion is expressed. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we identified during the audit. Other Matters The results of our auditing procedures disclosed instances of noncompliance which are required to be reported in accordance with the Uniform Guidance and which are described in the accompanying schedule of findings and questioned costs as item 2024-001. Our opinion on each major federal program is not modified with respect to these matters. -- 203 of 220 -- 204 ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 City of Tallahassee SIngLE AuDIT AnD OTHER REpORTS The Honorable Mayor and City Commission City of Tallahassee, Florida Government Auditing Standards requires the auditor to perform limited procedures on the City’s response to the noncompliance findings identified in our audit described in the accompanying schedule of findings and questioned costs. The City’s response was not subjected to the other auditing procedures applied in the audit of compliance and, accordingly, we express no opinion on the response. The City is responsible for preparing a corrective action plan to address each audit finding included in our auditor’s report. The City’s corrective action plan was not subjected to the auditing procedures applied in the audit of compliance and, accordingly, we express no opinion on it. Report on Internal Control over Compliance Our consideration of internal control over compliance was for the limited purpose described in the “Auditor’s Responsibilities for the Audit of Compliance” section above and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance and therefore, material weaknesses or significant deficiencies may exist that were not identified. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, as discussed below, we did identify certain deficiencies in internal control over compliance that we consider to be significant deficiencies. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct noncompliance with a type of compliance requirement of a federal program, state project, or the passenger facility charge program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program, state project, or the passenger facility charge program will not be prevented, or detected and corrected on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program, state project, or the passenger facility charge program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. We consider the deficiency in internal control over compliance described in the accompanying schedule of findings and questioned costs as item 2024-001, to be a significant deficiency. Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed. Government Auditing Standards requires the auditor to perform limited procedures on the City’s response to the internal control over compliance findings identified in our audit described in the accompanying schedule of findings and questioned costs. The City’s response was not subjected to the other auditing procedures applied in the audit of compliance and, accordingly, we express no opinion on the response. The City is responsible for preparing a corrective action plan to address each audit finding included in our auditor’s report. The City’s corrective action plan was not subjected to the auditing procedures applied in the audit of compliance and, accordingly, we express no opinion on it. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance, Chapter 10.550, Rules of the Auditor General, and the Guide. Accordingly, this report is not suitable for any other purpose. Tallahassee, Florida April 30, 2025 -- 204 of 220 -- ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 205 City of Tallahassee SIngLE AuDIT AnD OTHER REpORTS City of Tallahassee, Florida Schedule of Findings & Questioned Costs Year Ended September 30, 2024 Section I – Summary of Auditor’s Results Financial Statements 1. Type of report the auditor issued on whether the financial statements audited were prepared in accordance with GAAP: Unmodified Qualified Adverse Disclaimer 2. Internal control over financial reporting: Material weakness(es) identified? Yes No Significant deficiency(ies) identified? Yes None reported 3. Noncompliance material to the financial statements noted? Yes No Federal Awards and State Financial Assistance 4. Internal control over major federal programs: Material weakness(es) identified? Yes No Significant deficiency(ies) identified? Yes None reported 5. Type of auditor’s report issued on compliance for major federal program(s): (Check each description that applies. If any other than unmodified apply, also list the name of each major program by the type of opinion applicable to that program.) Unmodified Qualified Adverse Disclaimer 6. Any audit findings disclosed that are required to be reported in accordance with 2 CFR 200.516(a)? Yes No 7. Identification of major federal programs: Assistance Listing Number(s) Name of Federal Program or Cluster 14.218 Community Development Block Grants Cluster Entitlements 21.027 Covid-19 – Coronavirus State and Local Fiscal Recovery Funds 20.933 2023 RAISE Program 97.036 Disaster Grants – Public Assistance CSFA Numbers Name of State Projects 55.004 Aviation Development Grants 55.010 Public Transit Block Grant Program 8. Dollar threshold used to distinguish between Type A and Type B programs: Federal: $1,070,628 State: $750,000 9. Auditee qualified as a low-risk auditee? Yes No -- 205 of 220 -- 206 ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 City of Tallahassee SIngLE AuDIT AnD OTHER REpORTS City of Tallahassee, Florida Schedule of Findings & Questioned Costs Year Ended September 30, 2024 Section II – Financial Statement Findings Reference Number Finding No matters are reportable. Section III – Federal Award Findings and Questioned Costs Reference Number Finding 2024-001 Significant Deficiency – Matching Federal Assistance Listing No. 20.933 U.S. Department of Transportation Fiscal Year 2023 RAISE Program Criteria: The Uniform Guidance (2 CFR Part 200) governs how federal funds are spent, including matching and cost-sharing requirements for U.S. Department of Transportation grants. Condition: The City submitted and was reimbursed for costs that exceeded the federal agencies cost share percentage at the time of reimbursement. Cause: The City was calculating eligible reimbursable grant expenses with higher cost allocation percentage. The agreement stipulated a seventy-five/twenty-five cost share allocation. The City utilized an eighty/twenty cost share allocation when completing its reimbursement request. Effect: This calculation resulted in the City being reimbursed a higher amount for eligible expenses. The higher amount reimbursed occurred during the first reimbursement request under this program. Questioned Costs: Not applicable. Recommendation: We recommend that the City strengthen internal controls to ensure that the correct cost share as stipulated by grant agreements is utilized when submitting grant reimbursement requests. We also recommend that in its next reimbursement request under this program, the City work with grantor agency to reflect the adjustment for the amount over reimbursed as of September 30, 2024 and ensure that the Federal cost share amount for the program is properly reimbursed for the remaining term of the program. -- 206 of 220 -- ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 207 City of Tallahassee SIngLE AuDIT AnD OTHER REpORTS City of Tallahassee, Florida Schedule of Findings & Questioned Costs Year Ended September 30, 2024 Section III – Federal Award Findings and Questioned Costs (Cont.) Reference Number Finding Views of responsible officials and planned corrective action: The City of Tallahassee is committed to ensuring compliance with all grant requirements associated with the awards received from both Federal and State of Florida partners. The City was awarded $15 million from the Federal Transit Authority and $1 million from the State of Florida for the construction of the Southside Transit Center (STC). An additional $4 million was included from local sources. The issue noted came to light when the State directed City staff to request reimbursement at 5% of total costs rather than the original method of direct charging certain costs. As a result, the allocation across funding sources were updated to reflect this change in methodology. City staff immediately began the recalculation of expenditures and future budget allocations tasks and is in the process of adjusting the grant project accounting. The March 31, 2025 quarterly performance and financial reports will reflect the adjustments. The next draw down of funds will include adjustments for the over reimbursement that occurred as of September 30, 2024. We anticipate this process to completed by May 30, 2025. Finally, the Grants Management Division has added steps to its business process to ensure compliance with match requirements and staff have begun implementation of the new process. Section IV – Prior Year Audit Findings Reference Number Finding No matters are reportable. -- 207 of 220 -- 208 ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 City of Tallahassee SIngLE AuDIT AnD OTHER REpORTS Schedule of expenditures of Federal Awards and State Financial Assistance For the Fiscal Year ended September 30, 2024 ALN/CSFA # Program Name FAIN/State Grant # Flow Through Agency Sum of Current FY Expenditures Subrecipient Expenditures Federal Financial Assistance Awards US Department of Agriculture 10.175 Farmers Market and Local Food Promotion Program 23PFL1164 $ 2,617 $ 0 10.175 Total Farmers Market and Local Food Promotion Program 2,617 - US Dept of Housing & Urban Development CDBG - Entitlement Grants Cluster 14.218 Community Development Clock Grants/Entitlement Grants B15MC12019 550 Community Development Clock Grants/Entitlement Grants B16MC12019 826 Community Development Clock Grants/Entitlement Grants B17MC12019 400 Community Development Clock Grants/Entitlement Grants B18MC12019 21,860 Community Development Clock Grants/Entitlement Grants B19MC12019 17,305 Community Development Clock Grants/Entitlement Grants B20MC12019 362,241 49,523 Community Development Clock Grants/Entitlement Grants B20MW12019 184,244 21,263 Community Development Clock Grants/Entitlement Grants B21MC12019 74,921 Community Development Clock Grants/Entitlement Grants B22MC12019 850,542 64,639 Community Development Clock Grants/Entitlement Grants B23MC12019 1,316,106 184,742 Community Development Clock Grants/Entitlement Grants M20MC12221 (6,564) 14.218 Total CDBG - Entitlement Grants Cluster 2,822,431 320,167 14.231 Emergency Solutions Grant Program E23MC12019 163,251 163,251 14.231 Total Emergency Solutions Grant Program 163,251 163,251 14.239 Home Investment Partnerships M15MC12221 (14) Home Investment Partnerships M18MC12221 (5,282) Home Investment Partnerships M19MC12221 (20,320) Home Investment Partnerships M20MC12221 327,357 333,052 Home Investment Partnerships M21MC12221 25,054 11,188 Home Investment Partnerships M21MP12221 121,478 114,572 Home Investment Partnerships M22MC12221 (6,162) Home Investment Partnerships M23MC12221 252,073 250,000 14.239 Total Home Investment Partnerships 694,184 708,812 14.905 Lead Hazard Reduction Demonstration Grant Program FLLHB07832 52,904 14.905 Total Lead Hazard Reduction Demonstration Grant Program 52,904 US Department of Justice 16.609 Planning, Implementing, And Enhancing Strategies In Community Prosecution - Gun Violence Prosecution 8H002 Florida Dept of Law Enforcement 70,687 Planning, Implementing, And Enhancing Strategies In Community Prosecution - Gun Violence Prosecution K6003 Florida Dept of Law Enforcement 1,177 16.609 Total Planning, Implementing, And Enhancing Strategies In Community Prosecution - Gun Violence Prosecution 71,864 16.710 Public Safety Partnership and Community Policing Grants 21GG02309 48,719 16.710 Total Public Safety Partnership and Community Policing Grants 48,719 16.738 Edward Byrne Memorial Justice Assistance Grant Program 20DJBX0819 164 Edward Byrne Memorial Justice Assistance Grant Program PBJA04372 120,811 Edward Byrne Memorial Justice Assistance Grant Program PBJA211353 70,000 70,000 Edward Byrne Memorial Justice Assistance Grant Program PBJA222142 37,928 35,554 Edward Byrne Memorial Justice Assistance Grant Program PBJA23304 Florida Dept of Law Enforcement 26,664 Edward Byrne Memorial Justice Assistance Grant Program R7139 30,555 16.738 Total Edward Byrne Memorial Justice Assistance Grant Program 286,122 105,554 16.922 Equitable Sharing Program N/A 109,115 16.922 Total Equitable Sharing Program 109,115 US Dept of Transportation 20.106 Airport Improvement Program 3-12-0077-48-2022 1,045,150 Airport Improvement Program 3-12-0077-49-2022 141,742 Airport Improvement Program 3-12-0077-50-2022 7,773,257 Airport Improvement Program 3-12-0077-53-2023 83,595 Airport Improvement Program 3-12-0077-54-2024 685,886 Airport Improvement Program 3-12-0077-55-2024 24,143 Airport Improvement Program 3-12-0077-56-2024 43,560 Airport Improvement Program 3-12-0077-57-2024 187,305 Airport Improvement Program 3-12-0077-58-2024 150,207 20.106 Total Airport Improvement Program 10,134,845 -- 208 of 220 -- ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 209 City of Tallahassee SIngLE AuDIT AnD OTHER REpORTS Schedule of expenditures of Federal Awards and State Financial Assistance For the Fiscal Year ended September 30, 2024 ALN/CSFA # Program Name FAIN/State Grant # Flow Through Agency Sum of Current FY Expenditures Subrecipient Expenditures 20.205 Highway Planning and Construction G1C59 Florida Dept of Transportation 87,263 Highway Planning and Construction G2G94 Florida Dept of Transportation 51,703 20.205 Total Highway Planning and Construction 138,966 20.505 Metropolitan Transportation Planning And State And Non-Metropolitan Planning And Research FL2021029 219,859 20.505 Total Metropolitan Transportation Planning And State And Non-Metropolitan Planning And Research 219,859 Federal Transit Cluster 20.507 Federal Transit Formula Grant FL2020089 3,192 Federal Transit Formula Grant FL2021034 555 Federal Transit Formula Grant FL2021038 12,946 Federal Transit Formula Grant FL2022054 137,368 Federal Transit Formula Grant FL2023006 838,344 Federal Transit Formula Grant FL2023007 870,707 20.507 Total Federal Transit Formula Grant 1,863,112 20.526 Bus and Bus Facilities Formula Program FL2019102 42,152 Bus and Bus Facilities Formula Program FL2020100 43 Bus and Bus Facilities Formula Program FL2021038 4,099 Bus and Bus Facilities Formula Program FL2023006 197,100 20.526 Total Bus and Bus Facilities Formula Program 243,394 Total Federal Transit Cluster 2,106,506 20.509 Public Transportation for Nonurbanized Areas G2G87 Florida Dept of Transportation 121,401 Public Transportation for Ncnurbanized Areas G2S87 Florida Dept of Transportation 58,546 20.509 Total Public Transportation for Ncnurbanized Areas 179,947 Transit Services Cluster 20.513 Enhanced Mobility of Seniors and Individuals with Disabilities FL2017078 12,863 Enhanced Mobility of Seniors and Individuals with Disabilities FL2021045 233,176 Enhanced Mobility of Seniors and Individuals with Disabilities FL2024043 3,330 Enhanced Mobility of Seniors and Individuals with Disabilities FL2024049 32,932 20.513 Total Transit Services Cluster 282,301 Highway Safety Cluster 20.600 State and Community Highway Safety G2G25 Florida Dept of Transportation (9,145) State and Community Highway Safety G2S05 Florida Dept of Transportation 74,614 20.600 Total State and Community Highway Safety 65,469 20.616 National Priority Safety Programs G2P58 Florida Dept of Transportation 15,729 20.616 Total National Priority Safety Programs 15,729 Total Highway Safety Cluster 81,198 20.933 FY2023 National Infrastructure Investments (RAISE) FL2024080 1,458,685 20.933 Total National Infrastructure Investments 1,458,685 US Dept of Treasury 21.027 Coronavirus State And Local Fiscal Recovery Funds 23PLN58 Florida Dept of Environmental Protection 44,977 Coronavirus State And Local Fiscal Recovery Funds LPS0109 Florida Dept of Environmental Protection 16,813 Coronavirus State And Local Fiscal Recovery Funds SLF6650 11,518,599 1,900,033 Coronavirus State And Local Fiscal Recovery Funds WG040 Florida Dept of Environmental Protection 1,315,753 21.027 Total Coronavirus State And Local Fiscal Recovery Funds 12,896,142 1,900,033 -- 209 of 220 -- 210 ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 City of Tallahassee SIngLE AuDIT AnD OTHER REpORTS Schedule of expenditures of Federal Awards and State Financial Assistance For the Fiscal Year ended September 30, 2024 ALN/CSFA # Program Name FAIN/State Grant # Flow Through Agency Sum of Current FY Expenditures Subrecipient Expenditures US Dept of Energy 81.041 State Energy Program 28593 Florida Dept of Agriculture and Consumer Services 45,917 10,200 81.041 Total State Energy Program 45,917 10,200 US Dept of Homeland Security 97.036 Disaster Grants 4337 Florida Office of the Governor 205,343 6 Disaster Grants 4399 Florida Office of the Governor 811,783 6 Disaster Grants 4486 Florida Office of the Governor 1,714,598 6 Disaster Grants 4734 Florida Office of the Governor 8,760 6 97.036 Total Disaster Grants 2,740,484 97.039 Hazard Mitigation Grant Program H0575 Florida Office of the Governor 162,418 Hazard Mitigation Grant Program H0620 Florida Office of the Governor 242,022 Hazard Mitigation Grant Program H0637 Florida Office of the Governor 6,075 Hazard Mitigation Grant Program H0649 Florida Office of the Governor 171,237 Hazard Mitigation Grant Program H0652 Florida Office of the Governor 25,988 Hazard Mitigation Grant Program H0698 Florida Office of the Governor 13,334 Hazard Mitigation Grant Program H0897 Florida Office of the Governor 15,905 97.039 Total Hazard Mitigation Grant Program 636,979 97.067 Homeland Security Grant Program R0291 Florida Office of the Governor (943) Homeland Security Grant Program R0470 Florida Office of the Governor 26,915 Homeland Security Grant Program R0472 Florida Office of the Governor 1,975 Homeland Security Grant Program R0473 Florida Office of the Governor 82,821 Homeland Security Grant Program R0583 Florida Office of the Governor 1,620 Homeland Security Grant Program R0585 Florida Office of the Governor 9,999 Homeland Security Grant Program R0586 Florida Office of the Governor 39,154 Homeland Security Grant Program R1078 Florida Office of the Governor 353,012 97.067 Total Homeland Security Grant Program 514,553 Total Federal Financial Assistance Expenditures $ 35,687,589 $ 3,208,017 State of Florida Financial Assistance Executive Office of the Governor 31.078 Urban Search And Rescue Sustainment Program T0232 $ 124,723 31.078 Total Urban Search And Rescue Sustainment Program 124,723 Dept of Environmental Protection 37.039 Statewide Water Ǫuality Restoration Projects NS055 399,709 37.039 Total Statewide Water Ǫuality Restoration Projects 399,709 37.052 Florida Springs Grant Program 17-056 Northwest Florida Management District 15,791 Florida Springs Grant Program LPS0109 159 37.052 Total Florida Springs Grant Program 15,950 -- 210 of 220 -- ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 211 City of Tallahassee SIngLE AuDIT AnD OTHER REpORTS Schedule of expenditures of Federal Awards and State Financial Assistance For the Fiscal Year ended September 30, 2024 ALN/CSFA # Program Name FAIN/State Grant # Flow Through Agency Sum of Current FY Expenditures Subrecipient Expenditures 37.102 Diesel Emissions Mitigation Program - Volkswagen Settlement VW306 599,999 37.102 Total Diesel Emissions Mitigation Program - Volkswagen Settlement 599,999 Florida Housing Finance Corporation 40.901 State Housing Initiatives Partnership Program SHIP2021 91,434 State Housing Initiatives Partnership Program SHIP2022 323,613 197,527 State Housing Initiatives Partnership Program SHIP2023 1,378,986 541,658 State Housing Initiatives Partnership Program SHIP2024 808,652 491,860 40.901 Total State Housing Initiatives Partnership Program 2,602,685 1,231,045 Dept of Transportation 55.001 Florida Commission for the Transportation Disadvantaged Trip And Equipment Grant Program G2A22 4,730 Florida Commission for the Transportation Disadvantaged Trip And Equipment Grant Program G2K61 531,618 Florida Commission for the Transportation Disadvantaged Trip And Equipment Grant Program G2L86 15,857 Florida Commission for the Transportation Disadvantaged Trip And Equipment Grant Program G2Z27 11,768 55.001 Total Florida Commission For The Transportation Disadvantaged(Ctd) Trip And Equipment Grant Program 563,973 55.004 Aviation Grant Programs G1540 174,858 Aviation Grant Programs G1C03 2,737,295 Aviation Grant Programs G1O66 17,842 Aviation Grant Programs G2820 3,302,057 Aviation Grant Programs G2870 432,209 Aviation Grant Programs G2H08 43,075 Aviation Grant Programs G2H07 383,308 55.004 Total AVIATION GRANT PROGRAMS 7,090,644 55.010 Public Transit Block Grant Program G2R34 1,350,323 55.010 Total Public Transit Block Grant Program 1,350,323 55.039 Local Transportation Projects G3098 97,246 55.039 Total Local Transportation Projects 97,246 Florida Department of Law Enforcement 71.010 Assistance with Investigative Operations Z8010 18,862 71.010 Total Assistance with Investigative Operations 18,862 71.042 Identify Theft And Fraud Grant Program ZF005 1,166 71.042 Total Identify Theft And Fraud Grant Program 1,166 71.122 State Assistance for Fentanyl Eradication In Florida 23SAFESF30 60,674 71.122 Total State Assistance for Fentanyl Eradication In Florida 60,674 Florida Department of Juvenile Justice 80.029 Delinquency Prevention 10804 43,628 80.029 Total Delinquency Prevention 43,628 Total State Financial Assistance Expenditures $ 12,969,582 $ 1,231,045 Notes 1) The accompanying Schedule of Federal and State Financial Assistance of Expenditures (Schedule) presents the activity of all federal programs and state projects of the City of Tallahassee for the year ended September 30, 2024. All expenditures related to federal awards and state projects received directly from federal and state agencies, as well as federal awards and state projects passed through other governmental agencies, are included in the accompanying Schedule. The information in this Schedule is presented in accordance with the requirements of Title 2, US Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (Uniform Guidance) and Chapter 10.550, Rules of the Florida Auditor General. 2) The Schedule was prepared on the modified accrual basis of accounting. 3) No federal or state financial assistance was expended in non-cash assistance. 4) The City has not elected to use the 15 percent de minimis indirect cost rate allowed under the Uniform Guidance. 5) Housing loans outstanding at year end: Community Development Block Grant – Entitlement 14.218 503,982 Home Investment Partnerships Program 14.239 3,862,707 -- 211 of 220 -- 212 ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 City of Tallahassee SIngLE AuDIT AnD OTHER REpORTS Schedule of expenditures of Federal Awards and State Financial Assistance For the Fiscal Year ended September 30, 2024 ALN/CSFA # Program Name FAIN/State Grant # Flow Through Agency Sum of Current FY Expenditures Subrecipient Expenditures State Housing Initiatives Partnership Program 40.901 1,694,012 $ 6,060,701 6) Expenditures for the following awards included expenditures incurred through September 30, 2022: Disaster Grants 97.036 4337 205,343 Disaster Grants 97.036 4399 811,783 Disaster Grants 97.036 4486 1,714,598 Disaster Grants 97.036 4734 8,760 $ 2,740,484 7) Statement in accordance with Chapter 341.052, Florida Statutes, Florida Department of Transportation, Public Transit Block Grant funds did not exceed local revenue; were not expended for depreciation or amortization of capital assets; and did not supplant local tax revenues made available for operations in the previous year. -- 212 of 220 -- ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 213 City of Tallahassee SIngLE AuDIT AnD OTHER REpORTS Schedule of expenditures of Passenger Facility Charges For the Year ended September 30, 2024 Program Title expenditures Passenger Facility Charges Used: Passenger Facility Charge Application #06-06-C-00-TLH: Passenger Facility Charge Application #16-07-C-00-TLH: Project 1: Terminal Rehabilitation 604,635 Project 2: Terminal PLB Design, Acquisition and Installation 662,372 Project 4: Multiple-User Passenger Information Display Systems 664,941 $ 1,931,948 Passenger Facility Charge Application #23-08-C-00-TLH: Project 3: Terminal Modernization - Main Terminal Chiller Plant Replacement 85,832 Project 4: Terminal Front Entrance Pedestrian and Traffic Safety Improvement 2,683 $ 88,515 Total Passenger Facility Charges Used $ 2,020,463 -- 213 of 220 -- 214 ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 City of Tallahassee SIngLE AuDIT AnD OTHER REpORTS Forvis Mazars, LLP is an independent member of Forvis Mazars Global Limited Independent Accountant’s Report The Honorable Mayor and City Commission City of Tallahassee, Florida Tallahassee, Florida We have examined the compliance of the City of Tallahassee, Florida’s (the “City”) compliance with the requirements of Section 218.415, Florida Statutes, during the year ended September 30, 2024. Management is responsible for the City’s compliance with those requirements. Our responsibility is to express an opinion on the City’s compliance based on our examination. Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. Those standards require that we plan and perform the examination to obtain reasonable assurance about whether the City complied with those requirements, in all material respects. An examination involves performing procedures to obtain evidence about the City’s compliance with those requirements. The nature, timing, and extent of the procedures selected depend on our judgment, including an assessment of the risks of noncompliance, whether due to fraud or error. We believe that the evidence we obtained is sufficient and appropriate to provide a reasonable basis for our opinion. Our examination does not provide a legal determination on the City’s compliance with specified requirements. We are required to be independent and to meet our other ethical responsibilities in accordance with relevant ethical requirements relating to the engagement. In our opinion, the City complied, in all material respects, with the aforementioned requirements for the year ended September 30, 2024. Tallahassee, Florida April 30, 2025 -- 214 of 220 -- ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 215 City of Tallahassee SIngLE AuDIT AnD OTHER REpORTS Forvis Mazars, LLP is an independent member of Forvis Mazars Global Limited Independent Auditor’s Management Letter The Honorable Mayor and City Commission City of Tallahassee, Florida Tallahassee, Florida Report on the Financial Statements We have audited the basic financial statements of the City of Tallahassee, Florida (the “City”) as of and for the year ended September 30, 2024, and have issued our report thereon dated April 30, 2025. Auditor’s Responsibility We conducted our audit in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States; the audit requirements of Title 2 U.S. Code of Federal Regulations, Part 200, Uniform Administrative Requirements, Cost Principles, and the Audit Requirements for Federal Awards (Uniform Guidance); and Chapter 10.550, Rules of the Auditor General; and the Passenger Facility Charge Audit Guide for Public Agencies. Other Reporting Requirements We have issued our Independent Auditor’s 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; Independent Auditor’s Report on Compliance for Each Major Federal Program, Major State Project, and the Passenger Facility Charge Program and on Internal Control over Compliance and Report on Schedule of Expenditures of Federal Awards and State Financial Assistance and Schedule of Passenger Facility Charges Required by the Uniform Guidance, Chapter 10.550, Rules of the Auditor General, and Passenger Facility Charge Audit Guide for Public Agencies; Schedule of Findings and Questioned Costs, and Independent Accountant’s Report on an examination conducted in accordance with AICPA Professional Standards, AT-C Section 315, regarding compliance requirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in those reports and schedule, which are dated April 30, 2025, should be considered in conjunction with this management letter. Prior Audit Findings Section 10.554(1)(i)1., Rules of the Auditor General, requires that we determine whether or not corrective actions have been taken to address findings and recommendations made in the preceding annual financial audit report. In connection with the proceeding audit, there were no findings or recommendations. Official Title and Legal Authority Section 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official title and legal authority for the primary government and each component unit of the reporting entity be disclosed in this management letter, unless disclosed in the notes to the financial statements. The legal authority is disclosed in the notes to the financial statements. -- 215 of 220 -- 216 ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 City of Tallahassee SIngLE AuDIT AnD OTHER REpORTS The Honorable Mayor and City Commission City of Tallahassee, Florida Financial Condition and Management Sections 10.554(1)(i)5.a. and 10.556(7), Rules of the Auditor General, require us to apply appropriate procedures and communicate the results of our determination as to whether or not the City has met one or more of the conditions described in Section 218.503(1), Florida Statutes, and identification of the specific conditions met. In connection with our audit, we determined that the City did not meet any of the conditions described in Section 218.503(1), Florida Statutes. Pursuant to Sections 10.554(1)(i)5.b. and 10.556(8), Rules of the Auditor General, we applied financial condition assessment procedures for the City. It is management’s responsibility to monitor the City’s financial condition, and our financial condition assessment was based, in part, on representations made by management and the review of financial information provided by same. Section 10.554(1)(i)2., Rules of the Auditor General, requires that we communicate any recommendations to improve financial management. In connection with our audit, we did not have any such recommendations. Special District Component Units Section 10.554(1)(i)5.c, Rules of the Auditor General, requires that we determine whether or not a special district that is a component unit of a county, municipality, or special district, provided the financial information necessary for proper reporting of the component unit, within the audited financial statements of the county, municipality, or special district in accordance with Section 218.39(3)(b), Florida Statutes. In connection with our audit, we determined that all special district component units provided the necessary information for proper reporting in accordance with Section 218.39(3)(b), Florida Statutes. As required by Section 218.39(3)(c), Florida Statues, and Section 10.554(1)(i)6, Rules of the Auditor General, see Attachment A for required information on the dependent special districts that are included in the reporting entity. The information in Attachment A has not been subject to auditing procedures, therefore no assurance is given on the provided information. Property Assessed Clean Energy (PACE) Programs As required by Section 10.554(1)(i)6.a., Rules of the Auditor General, a PACE program authorized pursuant to Section 163.081 or Section 163.082, Florida Statutes, did not operate within the City’s geographical boundaries during the fiscal year under audit. Additional Matters Section 10.554(1)(i)3., Rules of the Auditor General, requires us to communicate noncompliance with provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred, that have an effect on the financial statements that is less than material but warrants the attention of those charged with governance. In connection with our audit, see finding 2024-001 included in the Schedule of Findings and Question Costs. Purpose of this Letter Our management letter is intended solely for the information and use of the Legislative Auditing Committee, members of the Florida Senate and the Florida House of Representatives, the Florida Auditor General, federal and other granting agencies, the Mayor, City Commission, and applicable management and is not intended to be, and should not be, used by anyone other than these specified parties. Tallahassee, Florida April 30, 2025 -- 216 of 220 -- ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 217 City of Tallahassee SIngLE AuDIT AnD OTHER REpORTS Attachment A Special District Component Units-Reporting Requirements required by Section 218.39(3)(c), Florida Statutes, and Section 10.554(1)(i)6, Rules of the Auditor General Blended Component Unit Discretely Presented Component Unit Reporting Rquirements from Section 218.39 (3)(b), Florida Statutes Community Redevelopment Agency Downtown Improvement Authority The total number of district employees compensated in the last pay period of the district’s fiscal year as of September 30, 2024. 5 2 The total number of independent contractors to whom the nonemployee compensation was paid in the last month of the district’s fiscal year as of September 30, 2024. 6 1 All compensation earned by or awarded to employees, whether paid or accrued, regardless of contingency as of September 30, 2024. $462,095 $159,694 All compensation earned by or awarded to nonemployee independent contractors, whether paid or accrued, regardless of contingency as of September 30, 2024. $1,396,546 $171,560 Each construction project with a total cost of at least $65,000 approved by the district that is scheduled to begin on or after October 1 of the fiscal year being reported, together with the total expenditures for such project as of September 30, 2024. Frenchtown Neighborhood First Plan - $3.39M Tallahassee Housing Authority - $1M Osceola Sidewalk - $600,000 Bond Community Health - $159,714 Hayward House - $134,000 Argonaut Coffee - $101,813 C. K. Steele Plaza - $250,000 Monroe Street Sidewalk - $2.5M A budget variance based on the budget adopted under Section 189.016(4), Florida Statutes, before the beginning of the fiscal year being reported if the district amends a final adopted budget under Section 189.016(6), Florida Statutes, as of September 30, 2024. Refer to separately issued Financial Statements See Attachment В -- 217 of 220 -- 218 ANNUAL COMPREHENSIVE FINANCIAL REPORT | FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 City of Tallahassee SIngLE AuDIT AnD OTHER REpORTS Budgetary Comparison Schedule Downtown Improvement Authority September 30, 2024 Budgeted Amounts Actual Amounts (Budgetary Basis) Variance with Final Budget Positive (negative) original Final Budgetary Fund Balance - october 1 $ - $ - $ - $ - Resources Taxes 317 317 316 (1) Licenses and Permits - - - - Intergovernmental Revenues - - 50 50 Charges for Services 130 130 168 38 Fines and Forfeitures - - - - Interest Earned 2 2 11 9 Miscellaneous 80 80 50 (30) Transfers from Other Funds 50 50 - (50) Amounts Available for Appropriations 579 579 595 16 Charges to Appropriations General Government - - - - Public Safety - - - - Transportation - - - - Human Services - - - - Economic Development 579 497 430 67 Physical Environment - - - - Culture and Recreation - - - - Debt Service - - - - Transfers to Other Funds - 82 50 32 Total Charges to Appropriations 579 579 480 99 Budgetary fund balance, September 30 $ - $ - $ 115 $ 115 -- 218 of 220 -- -- 219 of 220 -- -- 220 of 220 --
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