Comprehensive Annual Financial Report 2018 by City of Edmond

C IT Y O F E D MO N D, O K L A HO M A

11 Nationally recognized Blue Ribbon Schoolsthe highest number in Oklahoma.

517

Edmond boasts a growing economy with 517 new home permits expected to be issued in 2018.

Edmond has the lowest crimes per thousand rate in the OKC metro at 16.64.

Edmond Electric is Oklahoma’s largest community owned electric utility and provides a 99.9% reliability rating!

100 E D M O N D , I T ’ S E V E RY W H E R E YO U WA N T T O B E COMPR EHENSIV E ANNUA L FINANCI A L R EPORT

FOR THE FISC A L Y E A R ENDED JU NE 30, 2018

CITY OF EDMOND, OKLAHOMA COMPREHENSIVE ANNUAL FINANCIAL REPORT AND ACCOMPANYING INDEPENDENT AUDITORâ&#x20AC;&#x2122;S REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2018

Prepared by: Financial Services Department Warren Porter Finance Director

CITY OF EDMOND, OKLAHOMA COMPREHENSIVE ANNUAL FINANCIAL REPORT AND ACCOMPANYING INDEPENDENT AUDITOR’S REPORT For the fiscal year ended June 30, 2018 TABLE OF CONTENTS

Page INTRODUCTION SECTION: Letter of Transmittal

1-10

List of Principal Officials

City Governmental Organization Chart

Certificate of Achievement for Excellence in Financial Reporting

FINANCIAL SECTION: INDEPENDENT AUDITOR’S REPORT

15-16

MANAGEMENT DISCUSSION AND ANALYSIS

17-32

BASIC FINANCIAL STATEMENTS: Statement of Net Position

Statement of Activities

Balance Sheet – Governmental Funds

35-36

Statement of Revenues, Expenditures and Changes In Fund Balance – Governmental Funds

37-38

Statement of Net Position – Proprietary Funds

Statement of Revenues, Expenses and Changes In Fund Net Position– Proprietary Funds

Statement of Cash Flows – Proprietary Funds

Statement of Fiduciary Net Position – Fiduciary Funds

Statement of Changes in Fiduciary Net Position – Fiduciary Funds

Notes to Basic Financial Statements

45-92

CITY OF EDMOND, OKLAHOMA COMPREHENSIVE ANNUAL FINANCIAL REPORT AND ACCOMPANYING INDEPENDENT AUDITOR’S REPORT For the fiscal year ended June 30, 2018 TABLE OF CONTENTS Page REQUIRED SUPPLEMENTARY INFORMATION: Budgetary Comparison Schedule –(Non-GAAP Budgetary Basis) - General Fund

93-95

Budgetary Comparison Schedule- (Non-GAAP Budgetary Basis) – Major Special Revenue Funds

96-97

Notes to Budgetary Comparison Schedules

98-99

Schedule of Share of Net Pension Liability – Police Pension & Schedule of City Contributions – Police Pension & Retirement System

100

Schedule of Share of Net Pension Liability – Firefighter’s System & Schedule of City Contributions – Firefighter’s Pension & Retirement

101

Single-Employer Defined Benefit Schedule of Changes in Net Pension Liability and Related Ratios

102

Pension Fund Schedule of City’s Contributions-Last Ten Years

103

Pension Fund Schedule of Investment Returns

104

OPEB Schedule

105

OTHER SUPPLEMENTARY INFORMATION: GENERAL FUND COMBINING SCHEDULES: General Fund Account Descriptions

107

Combining Balance Sheet – General Fund Accounts

108

Combining Schedule of Revenues, Expenditures and Changes in Fund Balance – General Fund Accounts

109

Schedule of Revenues, Expenditures and Changes in Fund Balance Budget and Actual (Non-GAAP Budgetary Basis) – General Fund Accounts

110-111

NONMAJOR GOVERNMENTAL FUNDS: Fund Descriptions

112-113

Combining Balance Sheet – Nonmajor Governmental Funds

114-115

Combining Statement of Revenues, Expenditures and Changes in Fund Balance – Nonmajor Governmental Funds

116-117

CITY OF EDMOND, OKLAHOMA COMPREHENSIVE ANNUAL FINANCIAL REPORT AND ACCOMPANYING INDEPENDENT AUDITOR’S REPORT For the fiscal year ended June 30, 2018 TABLE OF CONTENTS Page Schedule of Revenues, Expenditures and Changes in Fund Balance Budget and Actual (Non-GAAP Budgetary Basis) - Nonmajor Governmental Funds

118-124

Schedule of Revenues, Expenditures and Changes in Fund Balance Budget and Actual (Non-GAAP Budgetary Basis) - Major Governmental Capital Project Funds

125

NONMAJOR ENTERPRISE FUNDS: Fund Descriptions

126

Combining Statement of Net Position – Nonmajor Enterprise Funds

127

Combining Statement of Revenues, Expenses and Changes In Fund Net Position – Nonmajor Enterprise Funds

128

Combining Statement of Cash Flows – Nonmajor Enterprise Funds

129

INTERNAL SERVICE FUNDS: Fund Descriptions

130

Combining Statement of Net Position - Internal Service Funds

131

Combining Statement of Revenues, Expenses and Changes in Fund Net Position – Internal Service Funds

132

Combining Statement of Cash Flows – Internal Service Funds

133

AGENCY FUNDS: Fund Descriptions

134

Combining Statement of Fiduciary Assets and Liabilities - Agency Funds

135

Combining Statement of Changes in Assets and Liabilities - Agency Funds

135

REVENUE BOND/NOTE COVENANT SCHEDULES: Schedule Descriptions

136

Schedule of Revenue Bond/Note Debt Service Coverage

137

Schedule of Reserve Account Balances

138

iii

CITY OF EDMOND, OKLAHOMA COMPREHENSIVE ANNUAL FINANCIAL REPORT AND ACCOMPANYING INDEPENDENT AUDITOR’S REPORT For the fiscal year ended June 30, 2018 TABLE OF CONTENTS Page DISCRETELY PRESENTED COMPONENT UNIT: Fund Description

139

Balance Sheet – Discretely Presented Component Unit

140

Statement of Revenues, Expenditures, and Changes in Fund Balance – Discretely Presented Component Unit

141

STATISTICAL SECTION: Statistical Section Narrative

Table 143

Net Position by Component - Last Ten Fiscal Years

144

Changes in Net Position - Last Ten Fiscal Years

145-146

Fund Balances, Governmental Funds – Last Ten Fiscal Years

147

Changes in Fund Balances, Governmental Funds – Last Ten Fiscal Years

148

Governmental Activities Tax Revenues by Source – Last Ten Fiscal Years

149

Electricity Revenue by Customer Type - Last Ten Fiscal Years

150

Top Ten Electric Customers – Last Ten Years

151

Electricity Rate Structure – Last Ten Fiscal Years

152-156

Historical Utility Customers – Last Ten Fiscal Years

157

Largest Water and Wastewater Customers

158

Sales Tax Rates of Direct and Overlapping Governments – Last Ten Fiscal Years

159

Taxable Sales by Category - Last Ten Fiscal Years

160

Monthly Sales Tax Revenue Comparison – Last Three Fiscal Years

161

Historical Sales Tax Revenue – Last Ten Fiscal Years

162

Ratio for Outstanding Debt by Type – Last Ten Fiscal Years

163

Ratio of Net General Bonded Debt to Assessed Value and Net Bonded Debt per Capita – Last Ten Fiscal Years

164

CITY OF EDMOND, OKLAHOMA COMPREHENSIVE ANNUAL FINANCIAL REPORT AND ACCOMPANYING INDEPENDENT AUDITOR’S REPORT For the fiscal year ended June 30, 2018 TABLE OF CONTENTS STATISTICAL SECTION:

Table

Page

Computation of Direct and Overlapping Debt

165

Legal Debt Margin Information – Last Ten Fiscal Years

166

The Edmond Public Works Authority Utility Systems Division Pledged Revenue Coverage – Last Ten Fiscal Years

167

Demographic and Economic Statistics – Last Ten Calendar Years

168

Principal Employers – Current and Ten Years Ago

169

Full-Time Equivalent Budgeted City Government Employees by Function/Program – Last Ten Fiscal Years

170

Capital Asset Statistics by Function/Program – Last Ten Fiscal Years

171

Operation Indicators by Function/Program – Last Ten Fiscal Years

172

Construction Permits – Last Ten Fiscal Years

173

INTRODUCTION TAB

December 27, 2018 Honorable Mayor and City Councilmembers City of Edmond, Oklahoma Dear Mayor and Councilmembers: The Comprehensive Annual Financial Report of the City of Edmond (the “City”) for the year ended June 30, 2018, is hereby submitted as mandated by the city charter and state statutes. The City is required to publish within six months of the close of each fiscal year a complete set of financial statements presented in conformance with generally accepted accounting principles (GAAP) and audited in accordance with generally accepted auditing standards by a firm of licensed certified public accountants. Responsibility of both the accuracy of the data and the completeness and fairness of the presentation, including all disclosures, rests with the Financial Services Department of the City. The City has established a comprehensive internal control framework designed to both protect the City’s assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of the City of Edmond’s financial statements in conformity with GAAP. Since the cost of internal controls should not outweigh the benefits derived from those controls, the City’s comprehensive framework of internal controls has been designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatement. We believe the information, as presented, is accurate in all material respects and is reported in a manner that presents fairly the financial position and results of operations of the various funds and component units of the City of Edmond. All disclosures necessary to enable the reader to gain an understanding of the City of Edmond’s activities have been included. The City’s financial statements have been audited by Arledge & Associates, P.C., a firm of licensed certified public accountants. The independent audit was conducted to provide reasonable assurance that the financial statements of the City are free of material misstatement. The independent audit examined, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessed the accounting principles used and estimates made by management, and evaluated the overall financial statement presentation. Based upon the results of their audit, Arledge & Associates, P.C. rendered unmodified opinions on all of the City’s opinion units within the financial statements for the year ending June 30, 2018. An unmodified opinion provides objective confirmation that the City’s financial statements are fairly presented in conformity with GAAP and free of material misstatement. The independent auditor’s report is presented as the first component of the financial section of this report. In addition to the independent audit of the financial statements, the City is required to undergo an annual single audit in conformity with the provisions of the Uniform Guidance. This audit requires the auditor to report on the government’s internal controls and compliance with legal requirements involved with the administration of major federal grant awards received by the City. These reports are designed to meet

the special needs of federal grantor agencies and are available in the City of Edmond’s separately issued Single Audit Report. Generally accepted accounting principles require City management to provide a narrative introduction, overview and analysis to accompany the basic financial statements in the form of Management’s Discussion and Analysis (MD&A). This transmittal letter is designed to complement the MD&A and should be read in conjunction with it. The City’s MD&A can be found immediately following the report of the independent auditors. Edmond is located in the center of Oklahoma and is contiguous with the northern boundary of Oklahoma City, the capital city of the state and the largest city in Oklahoma. Incorporated in 1890, the City covers approximately 87 square miles and according to the July 1, 2017 US Census population estimate, there were 91,950 persons within the City. This is a population increase of 13.3% since 2010. Currently, the City of Edmond Planning Department estimates the Edmond population at 94,826. The City features quiet suburban living with a central business district, major shopping and modern office areas, and a variety of and spacious residential developments. Edmond is the sixth‐largest community in Oklahoma but has the third largest public school district in the state. With over 25,242 public school students, Edmond has had 11 nationally recognized Blue Ribbon Schools and its public schools are better than 96% of schools in the rest of the state. There are also eight private schools within the City. Of residents 25‐and‐older, 53.3% have at least a bachelor’s degree, compared to the typical community of 24%. Two universities have a presence within the community, University of Central Oklahoma, the 3rd largest university in Oklahoma, and Oklahoma Christian University, with a combined 2015‐16 enrollment of over 18,500 students. Francis Tuttle Technological College also provides educational and training services in Edmond. Edmond has the lowest crime rate, per thousand population, in the Oklahoma City metro area, with Part One crimes declining annually from 2012 through 2017. Part 1 Crimes for Edmond was 16.64 per 1,000 population compared to 46.84 in Oklahoma City. Federal Bureau of Investigation’s (FBI) statistics have ranked Edmond as the 48th safest city nationwide for reporting cities above 75,000, when comparing violent crime statistics. Edmond is safer than 89.4% of those reporting. Edmond Police Department and other public safety services moved into a new 70,000 square foot facility in October 2015. Edmond is the third largest city in the Oklahoma City Combined Statistical Area (CSA). Oklahoma City is the 27th‐largest city and is the 41st largest CSA in the U.S., with an estimated 2015 population of 1,430,327 for the CSA. Since 2010, the Oklahoma City MSA is the 10th‐fastest growing large metro in the country. The economy of the Greater Oklahoma City region is diverse. While federal, state and local government are the largest employers and the oil and natural gas sector generates the largest revenues, the area’s major private sector economic contributors include: 



Aviation & Aerospace: With the largest concentration of aviation and aerospace firms in the state, the Greater Oklahoma City region’s 236 firms employ 36,600 workers. Nearly 65% of the workforce at Tinker Air Force Base‐the largest single site employer in the state, consists of civilian contractors and service providers. Bioscience: The area’s Bioscience presence is growing with more than $6.7 billion in revenues and the sector employs more than 51,000 statewide.

   

Energy: The area is the Energy capital of the state. Energy accounts for approximately 3% of the metro employment but more than 9% of the total compensation. Health Care: The Oklahoma City region employs more than 83,000 health care sector workers and has 30 general medical and surgical hospitals and 16 specialized hospitals. Manufacturing: With more than 41,000 employed in this category, the manufacturing sector represents approximately 6% of the metro nonagricultural labor force. Professional, Business & Financial Services: This sector make up 18% of the metro’s total workforce with more than 133,000 employees.

As of October 2018, unemployment for Oklahoma was 3.4%, lower than the United States rate of 3.7%. For Oklahoma County, the home of Edmond, the September 2018 unemployment was at 3.0%. Sector gains, from October 2017 – October 2018, included Mining & Logging (13.8%); Wholesale Trade (5.8%) and Professional and Business Services (2.8%). Sectors with job losses included Information (‐7.0 %) and Construction (‐0.6%). After a slump in oil related business during most of 2016, the business environment for Oil and Gas dramatically improved in 2017 and 2018. Oil and Gas Rig count for October 2018 in Oklahoma was at 142, a 13% increase from October 2017. Oil production also increased by 20.1% for the same period. The City has adopted a charter and operates under a Council‐Manager form of government pursuant to the charter and is recognized by the International City Management Association and the National League of Cities. The legislative authority of the City is vested in a five member elected council, consisting of one council member from each of four wards and the mayor who serves as council member at large. Council members serve four‐year staggered terms with two council members elected every two years. The Mayor is elected to serve a two‐year term. The City Council members are also the Trustees of the Edmond Public Works Authority. The Mayor and Council appoint the City Manager, who as the chief executive officer of the City is responsible to the Mayor and the City Council for the administration of all City services, including budget preparation, and employees under a merit plan. The City provides a wide range of municipal services, including police and fire protection, the construction and maintenance of highways, streets and other infrastructure, and a multitude of recreational and cultural events throughout the year. The City also provides electric, water, wastewater, drainage, and solid waste services to its residents under the legal entity of the Edmond Public Works Authority (EPWA). EPWA is a public trust created under applicable Oklahoma statutes on October 6, 1970, with the City named as the beneficiary thereof. These utility systems operate for the benefit of the City of Edmond and are an integral part of City operations. Electric rates were increased an average of 2.5%, effective November 2015. In 2016, Water and Wastewater rates also initiated the first of a series of annual increases through 2019. The City has begun to initiate major construction activities at the Wastewater Treatment facility in 2017 and plans to let bids for a new Water Treatment facility in 2019. EPWA’s financial statements are blended into the City’s financial statements and together they comprise the City’s primary financial presentation. The City is also financially accountable for a legally separate Economic Development Authority and a legally separate Historic Preservation Trust. Both of these operations are reported separately within the City’s financial statements. Additional information on these operations may be found in Note 1.A in the notes to the financial statements. Five‐year strategic business plans and operating budgets developed to support those plans serve as the foundation for the City’s financial planning and control. The City Manager issues corporate guidelines that establish priorities and specific economic factors for the upcoming budget year. Budgets are then

developed by departments for all five years. The City Manager’s recommended budget is required to be submitted to the City Council by June 1. The City Council must hold a public hearing on the budget by June 15 and adopt the budget at least seven days prior to July 1, which is the beginning of the new fiscal year. The appropriated budget is prepared by fund, department, and object level/category. Department heads may make transfers of appropriations within an expenditure object category. Transfers between expenditure object categories of a department or fund and budget supplements must be approved by the City Council. Supplemental appropriations must also be filed with the Office of the State Auditor and Inspector. Sales Tax and the Local Economy City of Edmond had positive growth in sales tax receipts for FY17‐18. Although the City budgeted for a 1% growth in sales tax collections, a 2.69% increase over FY16‐17 receipts was realized. The City has had positive growth in its annual sales tax collections during seven of the past eight years.

Sales Tax Growth through FY17‐18 10 Year History

14 12 10 8 6 4 2 0 ‐2 ‐4 ‐6

12.67

6.44

5.94

4.3

3.5

2.7

2.69 0.69

‐1.35

‐5.49

FY08‐09 FY09‐10 FY10‐11 FY11‐12 FY12‐13 FY13‐14 FY14‐15 FY15‐16 FY16‐17 FY17‐18 FY18‐19 BUDGET

3.75% Sale Tax Split (April 1st, 2017 the new 10 Year‐ 1/2% Sales Tax for Capital Improvement went into effect) Park CIP .125 of the 3.75 or .75 of the 3.75 or 3.3% 20%

2017 Capital Improvement Tax 0.50 of the 3.75 or 13.3%

General Fund 2.00 of the 3.75 or 53.3%

Fire .25 of the 3.75 or 6.7%

Police .125 of the 3.75 or 3.3%

General Fund's FY18‐19 Budgeted 2% Sales Tax is $ 35,101,791

Police $12,917,459 36.8% General Fund $11,653,795 33.2%

Fire $10,530,537 30%

Typically, sales tax collections account for around 60% of General Fund revenues. However, due to the voter‐approved 2000 Sales Tax initiative, Public Safety (i.e. Fire and Police) Departments receive over 66% of the revenue from the 2% General Fund sales tax. In April 2016, Edmond voters overwhelmingly approved two sales tax extensions for ten additional years upon expiration of the existing taxes. The one‐cent General Fund sales tax extension won with a vote of 4,894 to 1,214, or 80.1% approval rate.

The one‐cent tax rate is for the operations of the city and was originally approved in April 1977. The taxes have been extended by election for an additional ten‐year term and will not expire until April 2027. The half‐cent sales tax originally approved for the Public Safety Center was also extended during the April 2016 election. The renewed half‐cent tax will be utilized for capital improvements. The half‐cent extension won with a vote of 4,363 to 1,621, or 72.9% approval rate. Even with these renewed tax rates, Edmond’s sales tax will remain lower than the sales tax rates of neighboring communities within the Oklahoma City metro. Edmond continues to grow in both commercial and residential building. The City of Edmond issued 64 new commercial construction permits at a value of $78,808,716 during 2017. Although 2017 was a strong commercial building year, it did not match the best business development year in 2016, when 72 permits were issued for new commercial facilities with a value of $108,593,010. Through October 2018, we have issued 52 new commercial permits with a record value of $111,316,500 and 134 commercial addition/alteration permits with a value of $124,321,481.

Single Family Residential Building Permits Calendar Year 581

588

564

601 543

517 415

379 297 238

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

Single family residential housing permits for new construction reached record numbers in 2017, with home construction increasing from 415 permits during 2016, to 601 new homes in 2017‐‐an increase of 44.8%. The total value of permits for new home construction for 2017 was $187,918,343 or $312,676 per residence. Through end of calendar year 2018, the Building department estimates to issue 517 residential permits for construction of new homes. Total permit value for 2017 was $331,920,647, a 3.5% increase in total value over 2016. Total permit value through October 2018 is $409,769,987 or an increase of 23% over 2017 in only 10 months. Capital Improvements Edmond has two different sales tax initiatives to fund needed capital improvements for the city. The first tax authorized by voters in 1996 and then extended indefinitely in 2000, is the three‐quarter percent sales tax which raises about $13 million annually.

Although in excess of $100 million in bond financing has been backed by this fund, at the end of June 2018, the outstanding principal remaining on the 2000 CIP indebtedness had fallen to $42,557,556. The final maturity on the most recent issue is July 1, 2026. The second capital improvement sales tax was initiated by voter approval, effective April 2017. This involves a one‐half percent sales tax which generates over $8.6 million annually. This tax will sunset in March of 2027 unless reauthorized by voters. This tax can be used for any capital improvement identified in our capital planning. Because of the time limit of this tax, these funds will not be involved in financing any projects with debt. Since the inception of the 2000 sales tax, approximately $210,000,000 in projects have been constructed. Previous projects completed include the development of the Mitch Park YMCA/Edmond Public Schools Competitive Pool, the Kelly Street Widening project from Covell to Coffee Creek and Edmond 66 Park, an adult softball complex. Recently completed projects include major development activity at the interchange of Covell and Interstate 35. Edmond committed a total of nearly $12 million from the 2000 CIP Fund for a variety of projects for the development corridor, including the purchase of the land for the Hotel/Conference Center on the northwest corner; land on the northeast corner for a proposed indoor sports complex; infrastructure improvements to serve development west of the interchange and provide financial assistance for construction of the Conference Center. These investments addressed many needs identified by the community. The approved development agreement provides for the City to be repaid $9 million of the $12 million public investment. The repayment will begin within 15 years as each of the development projects approach buyout options of the City’s interest in the land and the conference center facility. This initiative should stimulate significant visitor traffic to Edmond and generate new sales tax dollars for the community. This investment will also serve as a catalyst for new commercial and retail opportunities at this interchange. In December 2018, adjacent to the Hotel/Conference Center, Showbiz Entertainment will open an entertainment complex with 14 bowling lanes, 10 movie theaters, an arcade and eating facilities. The other large project recently completed is the $3 million multi‐use paved trail that runs along Spring Creek from the west frontage road adjacent to I‐35 to Spring Creek Park at Arcadia Lake. This 18 feet wide trail is over 2.5 miles in length and is the first leg of many trail additions that would take the trail user around the lake and through the various parks at the lake. The availability of grant funding and private donations will determine the pace of future trail extensions around the lake. Traffic issues are the number one priority for the City, based upon citizen survey results. Many of the CIP selected projects address traffic issues. We have made a concentrated effort to focus attention to specific problem areas identified by our citizens and through engineering analysis of traffic needs. To that end, additional turn lanes were added at 33rd and Broadway, plus improvements on Covell at both Santa Fe and Bryant provide dedicated turn lanes that have increased the capacity of traffic flow through these intersections. Edmond has completed the first phase of implementation of the most extensive Intelligent Traffic System (ITS) in Oklahoma. The City will continue to develop the network through multi‐year CIP funding to improve traffic flow through the installation of continuous communication devices at high traffic intersections and controlled through a central computer system. The City has received financial assistance

from Oklahoma Department of Transportation (ODOT) for the implementation of ITS. Phase II is budgeted to begin in FY18‐19. Edmond has identified then next wave of construction projects that include further improvements on Covell from Fairfax Boulevard to Griffin Boulevard to provide better access to new development occurring on the south side of Covell. Three additional areas have been identified as problem locations; 2nd and Bryant, Covell Parkway from Griffin to Fairfax and, Danforth and Kelly intersection, all under engineering design and preparing for construction improvements to address traffic safety concerns and to improve capacity. Design and implementation of major improvements are important, but just as important is our annual program which resurfaces and rehabilitates local streets. The annual 2000 CIP appropriation for the Overlay Program in FY19 is approximately $3.2 million. Risk Management Program Safety and accountability are the responsibility of each department and overseen by the Risk Manager. The City is currently contracting with a third party administrator, CCMSI to process the City’s workers’ compensation claims. ‘One Beacon Government Risks’ provides general liability insurance coverage and the City has a third party administrator, CCMSI, manage the liability claims. The Beckman Insurance Company is City’s insurance broker for purposes of placement and obtaining applicable insurance coverage. The City is self‐insured for workers’ compensation with excess coverage provided by Midwest Employees Casualty Company. Additional information on Risk Management may be found in Note 4.B in the notes to the financial statements. The City’s actuary has determined that the estimated claim liability including incurred but not reported claims as of June 30, 2018 for workers’ compensation and general liability claims are $1,679,000 and $708,000 respectively.

Edmond's Workers Comp & Tort Claim History 2,000,000 1,800,000 1,600,000 1,400,000 1,200,000 1,000,000 800,000 600,000 400,000 200,000 ‐ Tort Claims

FY08‐09 FY09‐10 FY10‐11 FY11‐12 FY12‐13 FY13‐14 FY14‐15 FY15‐16 FY16‐17 FY17‐18 684,000 638,000 751,000 747,000 771,000

Work Comp 794,000 926,000

1,336,0

1,264,0

1,213,0

1,120,0

1,081,0

1,064,0

708,000

1,325,0

1,656,0

1,535,0

1,753,0

1,679,0

Employee Retirement Plan As of June 30, 2018, the assets of the Employees’ Defined Benefit Pension Plan for non‐uniformed employees posted an investment gain of $3,385,389 for an ending market value of $73,807,226. The investment returns for the Plan Year was 5.42% after expenses, which is below the City’s benchmark of 7.25%. While total Benefit Payments increased in Plan Year from $2,457,234 to $2,897,760, total disbursements increased from the previous Plan Year by $1,368,564. Employer contributions increased by $156,422 from the previous Plan Year and contributed refunds with interest fell/ increased by $942,559 from the previous year. Effective July 1, 2018, the City of Edmond increased its employer’s contribution rate to 9.49% from 9.45%.

EMPLOYEES' RETIREMENT PLAN ASSETS HISTORY 80,000,000

73,807,226 66,047,870

70,000,000

62,674,976 70,421,837

60,000,000

63,695,635

50,874,309 56,663,891

50,000,000

40,004,670

49,848,886

40,000,000 30,000,000

34,598,761

20,000,000 10,000,000 ‐ 2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

The City also participates in the Oklahoma Police Pension Retirement Fund and the Oklahoma Firefighters Pension and Retirement Fund on behalf of the City’s police and firefighters. These are statewide plans managed by the State of Oklahoma. Based upon certain wages defined by each plan, the Police contribution rates are 8% employee and 13% employer; the Fire contribution rates are 9% employee and 14% employer. The City has no obligation in connection with employee benefits offered through these plans beyond the stated above. Additional information on these retirement plans may be found in the notes to financial statements 4.A.

The City provides retiring employees the opportunity to continue the City’s health and dental insurance coverage at their expense if so elected at time of retirement. At the end of the fiscal year, 50 of the City’s eligible surviving spouses or retired employees maintained City coverage. This creates an OPEB obligation to the City since premiums are not adjusted for retirees. This being the ninth year to recognize the impact this has on the City’s finances; the City’s unfunded liability has decreased .63% from $6,139,679 to $6,098,014 (as per GASB 75 guideline). 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 Edmond for its Comprehensive Annual Financial Report (CAFR) for the fiscal year ended June 30, 2017. The Certificate of Achievement is a prestigious national award‐recognizing conformance with the highest standards for preparation of state and local government financial reports and the City of Edmond has been awarded a Certificate of Achievement for the last thirty‐two consecutive years, ending June 30, 1986‐2017. With transparency and accountability critical to the City’s mission, the City also received its seventh consecutive Award for Outstanding Achievement in Popular Annual Financial Reporting (PAFR) called the “Citizens Report”. We believe the current report conforms to the Certificate of Achievement program requirements, and are submitting it to GFOA.

CITY OF EDMOND, OKLAHOMA PRINCIPAL OFFICIALS AND FINANCE COMMITTEE MEMBERS JUNE 30, 2018 ELECTED OFFICIALS Charles Lamb Victoria Caldwell Elizabeth Waner Darrell Davis Nick Massey

Mayor Councilmember-Ward 1 Councilmember-Ward 2 Councilmember-Ward 3 Councilmember-Ward 4 FINANCE COMMITTEE MEMBERS

Stephen Schaus Nick Massey Charles Lamb

Chairperson Member Member ADMINISTRATION

Larry Stevens Stephen Murdock Stephen Schaus Steve Commons

City Manager City Attorney City Treasurer Assistant Assistant City Manger Administration Assistant City Manager Operations City Clerk Fire Chief Police Chief Human Resource Director Municipal Judge

Jim Smith Cinda Covel Chris Goodwin J.D. Younger Lisa Goodpasture Diane L. Slayton FINANCE STAFF Warren Porter William Weaver Sheila Briesch Brenda Mayer

Finance Director Assistant Finance Director Accounting Manager Purchasing Manager

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FINANCIAL TAB

INDEPENDENT AUDITORâ&#x20AC;&#x2122;S REPORT

INDEPENDENT AUDITOR’S REPORT

The Honorable Mayor and the Members of the City Council of the City of Edmond, Oklahoma Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the City of Edmond, Oklahoma, (the “City”) as of and for the year ended June 30, 2018, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents. Management’s Responsibility 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; this includes 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. Auditor’s Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Governmental Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements 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 entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the City, as of June 30, 2018, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. 15

Member of AICPA and OSCPA

Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, budgetary comparison information, and the pension plan and other post-employment benefit schedules, as listed in the table of contents, be presented to supplement the basic financial statements. Such information, 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 auditing standards generally accepted in the United States of America, 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. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The introductory section, other supplementary information, and statistical section are presented for purposes of additional analysis and are not a required part of the basic financial statements. The other supplementary information, as listed in the table of contents, is the responsibility of management and was derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such 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 auditing standards generally accepted in the United States of America. In our opinion, the other supplementary information is fairly stated, in all material respects, in relation to the basic financial statements as a whole. The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 17, 2018, 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.

December 17, 2018

MANAGEMENTâ&#x20AC;&#x2122;S DISCUSSION AND ANALYSIS

CITY OF EDMOND, OKLAHOMA MANAGEMENT’S DISCUSSION & ANALYSIS June 30, 2018

Our discussion and analysis of the City of Edmond’s financial performance provides an overview of the City’s financial activities for the fiscal year ended June 30, 2018. Please read it in conjunction with the City’s financial statements, which follow this section. FINANCIAL HIGHLIGHTS  For the fiscal year ended June 30, 2018, the City’s total net position increased by $52.5 million.  The City recorded derivative instruments of $1,214,222 and $514,795 in the governmental and business-type activities, respectively. The derivative instruments are offset by deferred inflows.  The City also recorded combined net pension liabilities of $65,629,955 for the year related to the Oklahoma Police Pension and Retirement System, the Oklahoma Fire Fighters Pension and Retirement System and the City’s Employee Pension and Retirement System.  During the year, the City’s expenses for governmental activities were $86.8 million and were funded by program revenues of $24.2 million and further funded with taxes and other general revenues and transfers that totaled $81.3 million.  In the City’s business-type activities, such as utilities, lake, golf course, and transportation operations, program revenues exceeded expenses by $35.3 million.  At June 30, 2018, the General Fund reported an unassigned fund balance of $6.7 million.  The City implemented GASB Statement 75 related to other post-employment benefits. As a result the City recorded a total OPEB liability of $6,098,015, deferred inflows related to OPEB of $201,140, and deferred outflows related to OPEB of $322,705.  For budgetary reporting purposes, the General Fund and major special revenue funds reported actual revenues below estimates of $1.3 million or 1.6%, while expenditures were under the final appropriations by $11.2 million or 17.57%. OVERVIEW OF THE FINANCIAL STATEMENTS The financial statements presented herein include all of the activities of the City of Edmond (the “City”) and its component units using the integrated approach as prescribed by GASB Statements No. 14, 34, 39, and 61. Included in this report are governmental-wide statements for each of two categories of activities – governmental and business-type, along with two discretely-presented component units. The government wide financial statements present the complete financial picture of the City from the economic resources measurement focus using the accrual basis of accounting. They present governmental activities and business type activities separately and combined. These statements include all assets of the City (including infrastructure capital assets) and deferred outflows as well as all liabilities (including all long-term debt) and deferred inflows. Reporting the City as a Whole The Statement of Net Position and the Statement of Activities One of the most frequently asked questions about the City’s finances is, “Has the City’s overall financial condition improved, declined or remained steady over the past year?” The Statement of Net Position and the Statement of Activities report information about the City as a whole and about its activities in a way that helps answer this question. These statements include all assets, deferred outflows, liabilities, and deferred inflows using the accrual basis of accounting, which is similar to the accounting used by the private-sector companies. All of the current period’s revenues and expenses are taken into account regardless of when cash is received or paid.

CITY OF EDMOND, OKLAHOMA MANAGEMENT’S DISCUSSION & ANALYSIS June 30, 2018

These two government-wide statements report the City’s net position and changes in them from the prior year. You can think of the City’s net position – the difference between assets, deferred outflows, liabilities, and deferred inflows – as one way to measure the City’s financial condition. Over time, increases or decreases in the City’s net position are one indicator of whether its financial health is improving, deteriorating, or remaining steady. However, you must consider other nonfinancial factors, such as changes in the City’s sales tax base, the condition of the City’s roads, and the quality of services to assess the overall health and performance of the City. As mentioned above, in the Statement of Net Position and the Statement of Activities, we divide the City into three kinds of activities: 

Governmental activities -- Most of the City’s basic services are reported here, including the police, fire, general administration, streets, and parks. Sales taxes, franchise fees, fines, and state and federal grants finance most of these activities.



Business-type activities -- The City charges a fee to customers to help cover all or most of the cost of certain services it provides. The City’s electric, water, wastewater, sanitation, lake, drainage, and golf course activities are reported here.



Discretely-presented component units – These account for activities of the City’s reporting entity that do not meet the criteria for blending, specifically the Historic Preservation Trust and the Edmond Economic Development Authority.

Reporting the City’s Most Significant Funds Fund Financial Statements The fund financial statements provide detailed information about the most significant funds – not the City as a whole. Some funds are required to be established by State law and by bond covenants. However, management establishes many other funds to help it control and manage money for particular purposes or to show that it is meeting legal responsibilities for using certain taxes, grants and other money. The City’s three fund categories-governmental, and proprietary, and fiduciary use different accounting approaches. Governmental funds - Most of the City’s basic services are reported in governmental funds, which focus on how money flows into and out of those funds and the balances left at year-end that are available for spending. These funds are reported using an accounting method called modified accrual accounting, which measures cash and all other financial assets that can readily be converted to cash. The governmental fund statements provide a detailed short-term view of the City’s general government operations and the basic service it provides. Governmental fund information helps determine whether there are more or fewer financial resources that can be spent in the near future to finance the City’s programs. We illustrate the relationship (or differences) between governmental activities (reported in the Statement of Net Position and the Statement of Activities) and the governmental funds with reconciliation at the bottom of the fund financial statements. Proprietary funds - When the City charges customers for the services it provides – whether to outside customers or to other units of the City – these services are generally reported in proprietary funds. Proprietary funds are reported in the same way that all activities are reported in the Statement of Net

CITY OF EDMOND, OKLAHOMA MANAGEMENT’S DISCUSSION & ANALYSIS June 30, 2018

Position, the Statement of Revenues, Expenses and Changes in Fund Net Position and Statement of Cash Flows. In fact, the City’s enterprise funds are the essentially the same as the business-type activities we report in the government-wide statements but provide more detail and additional information, such as cash flows.

Fiduciary funds - When the City is responsible for assets that – because of a trust arrangement or other fiduciary requirement – can be used only for trust beneficiaries or others parties, these activities are reported as fiduciary funds, such as the Employee Retirement Trust Fund. The City is responsible for ensuring that the assets reported in these funds are used for their intended purpose. All of the City’s fiduciary activities are reported in a separate statement of fiduciary net position and a statement of changes in fiduciary net position. We exclude these activities from the City’s government-wide financial statements because the City cannot use these assets to finance operations. A FINANCIAL ANALYSIS OF THE CITY AS A WHOLE Net Position As noted earlier, net position may serve over time as a useful indicator of a government’s financial position. In the case of the City, assets and deferred outflows exceeded liabilities and deferred inflows by $705,464,859 at the close of the most recent fiscal year. TABLE 1 NET POSITION (In Thousands)

Governmental Activities Restated, 2018 2017

% Inc. (Dec.)

Business‐Type Activities Restated, 2018 2017

% Inc. (Dec.)

Total 2018

Restated, 2017

Current assets Capital assets, net Other non‐current assets Total assets

$ 104,674 327,990 9,131 441,795

$ 93,933 328,059 9,425 431,417

11% 0% ‐3% 2%

$ 296,216 292,846 87,881 676,943

$ 204,841 247,705 6,440 458,986

45% 18% 1265% 47%

$ 400,890 620,836 97,012 1,118,738

$ 298,774 575,764 15,865 890,403

34% 8% 511% 26%

Deferred Outflows

19,666

23,118

‐15%

2,922

3,999

‐27%

22,588

27,117

‐17%

Current liabilities Non‐current liabilities Total liabilities

25,791 109,305 135,096

27,800 121,621 149,421

‐7% ‐10% ‐10%

29,385 266,000 295,385

20,646 91,673 112,319

42% 190% 163%

55,176 375,305 430,481

48,446 213,294 261,740

14% 76% 64%

Deferred Inflows

4,677

2,161

116%

703

680

5,380

2,841

89%

Net position Net investment in capital assets Restricted Unrestricted (deficit)

286,813 64,158 (29,282)

297,762 52,415 (47,223)

‐4% 22% ‐38%

212,909 23,678 147,189

200,608 12,555 136,831

6% 89% 8%

499,722 87,836 117,907

498,370 64,970 89,608

0% 35% 32%

Total net position

$ 321,689

$ 302,954

$ 383,776

$ 349,994

10%

$ 705,465

$ 652,948

CITY OF EDMOND, OKLAHOMA MANAGEMENT’S DISCUSSION & ANALYSIS June 30, 2018

Net Position (in Thousands) $383,776 $349,994 $313,588

$400,000 $350,000

$321,689 $300,000

$294,918 $287,017 $302,954 $273,750 $271,156 $248,599 $244,283 $241,069 $229,461 $229,167 $235,828 $214,648 $202,648 $201,953 $192,594

$250,000 $200,000 $150,000 $100,000 2009

2010

2011

2012

2013

2014

Governmental

2015

2016

2017

2018

Business Type

The largest portion of the City’s net position reflects its net investment in capital assets (e.g., land, buildings, machinery, and equipment); less any related debt used to acquire those assets that is still outstanding. For 2018, this investment in capital assets, net of related debt amounted to $499,721,628. The City uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City’s investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. A major portion of the City’s net position, $87,836,707, also represents resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted net position, $117,906,524, may be used to meet the government’s ongoing obligations to citizens and creditors. At the end of the current fiscal year, the City is able to report positive balances in all categories of net position, both for the government as a whole, as well as for its separate governmental and business-type activities. Changes in Net Position For the year ended June 30, 2018, net position of the primary government changed as follows:

CITY OF EDMOND, OKLAHOMA MANAGEMENT’S DISCUSSION & ANALYSIS June 30, 2018

TABLE 2 CHANGES IN NET POSITION (In Thousands)

Governmental Activities 2018

2017

$ 10,234 5,965 8,035

$ 11,469 6,552 10,310

74,649 1,057 838 829

Total Revenues

% Inc. (Dec.)

Business‐Type Activities 2018

2017

‐11% ‐9% ‐22%

$ 157,992 1,260 8,112

$ 155,607 1,168 4,641

70,805 1,118 626 1,098

5% ‐5% 34% ‐24%

‐ ‐ 2,479 4

101,607

101,978

Expenses General Government Public Safety Streets & highways Culture, parks and recreation Health and welfare Interest on long‐term debt Electric Water Wastewater Sanitation Lake Drainage Golf Course Cooperative purchasing service Transportation operations

6,889 52,589 16,312 7,861 1,916 1,262 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐

8,006 52,799 15,148 8,081 1,682 1,669 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐

‐14% 0% 8% ‐3% 14% ‐24%

Total Expenses Excess (deficiency) before transfers Transfers Increase in net position Beginning net position, restated Ending net position

86,829 14,778 3,957 18,735 302,954 $ 321,689

87,385 14,593 3,311 17,904 285,050 $ 302,954

‐1% 1% 20% 5%

Revenues Program revenue: Charges for service Operating grants and contributions Capital grants and contributions General Revenue: Taxes Intergovernmental revenue Investment income Miscellaneous

% Inc. (Dec.)

Total 2018

2016

2% 8% 75%

$ 168,226 7,225 16,147

$ 167,076 7,720 14,951

1% ‐6% 8%

‐ ‐ 929 ‐

0% 0% 167% 100%

74,649 1,057 3,317 833

70,805 1,118 1,555 1,098

5% ‐5% 113% ‐24%

169,847

162,345

271,454

264,323

‐ ‐ ‐ ‐ ‐ ‐ 83,960 19,607 15,607 7,046 1,470 881 2,070 75 1,392

‐ ‐ ‐ ‐ ‐ ‐ 80,292 18,724 9,665 7,158 1,454 1,034 2,201 51 1,693

5% 5% 61% ‐2% 1% ‐15% ‐6% 47% ‐18%

6,889 52,589 16,312 7,861 1,916 1,262 83,960 19,607 15,607 7,046 1,470 881 2,070 75 1,392

8,006 52,799 15,148 8,081 1,682 1,669 80,292 18,724 9,665 7,158 1,454 1,034 2,201 51 1,693

‐14% 0% 8% ‐3% 14% ‐24% 5% 5% 61% ‐2% 1% ‐15% ‐6% 47% ‐18%

132,108 37,739 (3,957) 33,782 349,994 $ 383,776

122,272 40,073 (3,311) 36,762 313,232 $ 349,994

218,937 52,517 ‐ 52,517 652,948 $ 705,465

209,657 54,666 ‐ 54,666 598,282 $ 652,948

4% ‐4%

8% ‐6% 20% ‐8%

‐ ‐4%

The City’s governmental activities’ increase in net position of $18.7 million represents a 5% increase from the prior year’s change in net position and is primarily the result of increased revenues in the transfer in. The business-type activities’ increase in net position of $33.8 million represents an 8% decrease from the prior year’s change in net position which is largely attributable to the increase in expenses and the increase in the transfer out. The results indicate the City, as a whole, experienced an increase in total net position of $52.5 million which was a combination of overall expenses staying relatively in line with revenue collections. Governmental Activities To aid in the understanding of the Statement of Activities some additional explanation is given. Of particular interest is the format that is significantly different than a typical Statement of Revenues, Expenses, and Changes in Fund Balance. You will notice that expenses are listed in the first column with revenues from that particular program reported to the right. The result is a Net (Expense)/Revenue. The reason for this kind of format is to highlight the relative financial burden of each of the functions on the City’s taxpayers. It also identifies how much each function draws from the general revenues or if it is selffinancing through fees and grants or contributions. All other governmental revenues are reported as general. It is important to note all taxes are classified as general revenue even if restricted for a specific purpose.

CITY OF EDMOND, OKLAHOMA MANAGEMENT’S DISCUSSION & ANALYSIS June 30, 2018

For the year ended June 30, 2018, the City’s governmental activities were funded as follows:

Governmental Activities Sources 2% 14% Sales Tax Other Taxes

10%

Charges for Service 3%

Grants 71%

Other

Governmental Activities Uses 2% 1% Public Safety General Government

19%

Culture, parks and recreation

9% 61% 8%

Streets and Highways Health and Welfare Interest on Long‐Term Debt

For the year ended June 30, 2018, total expenses for governmental activities amounted to $86.8 million. Of these total expenses, taxes and other general revenues funded $81.3 million, while those directly benefiting from the program funded $14.0 million in grants and other contributions and $10.2 million from charges

CITY OF EDMOND, OKLAHOMA MANAGEMENT’S DISCUSSION & ANALYSIS June 30, 2018

for services. Besides the aforementioned increase in sales tax other notable changes for governmental activities include an increase in expenses related to public safety operations. Governmental-type Activities TABLE 3 Net Revenue (Expense) of Governmental Activities (In Thousands) % Inc. Net Revenue (Expense) (Dec.) Total Expense of Services of Services 2018 2017 2018 2017 General Government $ 6,889 $ 8,006 ‐14% $ 1,318 $ 1,864 Public Safety 52,589 52,799 0% (46,403) (46,469) Streets & Highways 16,312 15,148 8% (7,558) (4,142) Culture, parks and recreation 7,861 8,081 ‐3% (7,636) (7,816) Health and Welfare 1,916 1,682 14% (1,055) (822) Interest on long‐term debt 1,262 1,669 ‐24% (1,262) (1,669) TOTAL

$ 86,829

$ 87,385

‐1%

$ (62,596)

$ (59,054)

% Inc. (Dec.) ‐29% 0% 82% ‐2% 28% ‐24% 6%

Business-type Activities TABLE 4 Net Revenue (Expense) of Business‐Type Activities (In Thousands) Net Revenue (Expense) of % Inc. Total Expense of Services Services (Dec.) 2018 2017 2018 2017 Electric $ 83,960 $ 80,292 5% $ 12,992 $ 16,706 Water 19,607 18,724 5% 14,658 12,775 Wastewater 15,607 9,665 61% 5,517 8,049 Sanitation 7,046 7,158 ‐2% 2,296 2,042 Lake 1,470 1,454 1% (397) (345) Drainage 881 1,034 ‐15% 942 757 Golf 2,070 2,201 ‐6% (94) (213) Cooperative purchasing services 75 51 47% 18 40 Transportation 1,392 1,693 ‐18% (677) (667)

TOTAL

$ 132,108

$ 122,272

$ 35,255

$ 39,144

% Inc. (Dec.) ‐22% 15% ‐31% 12% 15% 24% ‐56% ‐55% 1%

‐10%

The City’s business-type activities include utility services, lake and golf course operations, the cooperative purchasing program and operations of the transit system. In reviewing the business-type activities net (expense)/revenue, the following highlights should be noted:

CITY OF EDMOND, OKLAHOMA MANAGEMENT’S DISCUSSION & ANALYSIS June 30, 2018

  

Total business-type activities reported net revenues of $35.3 million for the year ended June 30, 2018. All individual activities reported net revenue for the year ended June 30, 2018 with the exception of lake, golf and transportation operations. Significant increases in net revenue were recognized in the water operation due to increased rates a delay in capital projects, and management of operating expenses.

A FINANCIAL ANALYSIS OF THE CITY’S FUNDS As the City completed its 2018 fiscal year, the governmental funds reported a combined fund balance of $79.6 million or a 14.6% increase from 2017. The enterprise funds reported combined net position of $375.7 million or a 9.8% increase from 2017. The fund balance constraints and net position restrictions are listed below: Governmental Funds: Fund Balance: Restricted

Committed

62,612,325 3,175

Assigned

10,404,920 Total Fund Balance Constraints

73,020,420

23,680,038

Enterprise Funds: Net Position Restrictions: Restricted for debt service

Restricted for scholarships

23,678,437 1,601

Total Enterprise Fund Net Position Restrictions

Other fund highlights include:  For the year ended June 30, 2018, the General Fund’s total fund balance increased by $3,273,593 due to increased sales and use tax and a slight decrease in expenditures.  The 2000 Capital Improvement Tax Fund’s total fund balance increased by $231,711 due to increase in transfers in from other funds.  The Fire Public Safety Limited Tax Fund’s total fund balance increased by $938,235 due to an increase in transfers from other funds.  The Police Public Safety Limited Tax Fund’s total fund balance decreased by $449,290 due to an increase in expenditures.  All enterprise funds reported an increase in net position, after transfers, for the year ended June 30, 2018 with the exception of lake and golf. In each of the funds mentioned above, charges for services did cover operational costs with the exception of Lake, Golf and transportation.  The employee pension trust fund posted an increase in net position of the fund of $3.4 million. The increase is due to an increase in the investment yields in the market.

General Fund Budgetary Highlights

CITY OF EDMOND, OKLAHOMA MANAGEMENT’S DISCUSSION & ANALYSIS June 30, 2018

Over the course of the year, the City Council revised the General Fund budget various times. Actual revenues and transfers were below final estimates by $1,402,159 or 1.87% which was a result of an decrease in transfers in, while expenditures were under final appropriations by $5,284,712 or 6.99% which is mainly due to reduced operating transfers. CAPITAL ASSET AND DEBT ADMINISTRATION Capital Assets At the end of June 30, 2018, the City had $621 million invested in capital assets, net of depreciation, including police and fire equipment, buildings, park facilities, water lines and sewer lines. (See table below). This represents a net increase of $45.1 million or 7.83% over last year. TABLE 5 Primary Government Capital Assets (In Thousands) (Net of accumulated depreciation) Governmental Activities

Business‐Type Activities

Total

Land Buildings Imp. Other than buildings Equipment Intangible water rights Utility property Infrastructure Construction in progress

2018 $ 17,713 83,621 21,830 23,677 ‐ ‐ 155,010 26,140

2017 $ 17,713 86,911 16,932 23,929 ‐ ‐ 147,140 35,434

2018 $ 2,571 19,529 9,649 4,189 12,905 163,819 ‐ 80,184

2017 $ 2,571 20,426 9,895 3,528 13,550 162,974 ‐ 34,761

2018 $ 20,284 103,150 31,479 27,866 12,905 163,819 155,010 106,324

2017 $ 20,284 107,337 26,827 27,457 13,550 162,974 147,140 70,195

Totals

$ 327,991

$ 328,059

$ 292,846

$ 247,705

$ 620,837

$ 575,764

This year’s more significant capital asset additions included: $19.1M in Street improvements $5.5M in Park improvements $5.0M in Wastewater improvements $4.7M in Water Utility improvements $3.2M in Electric Utility improvements $2.6M in Fleet improvements See Note 3.D. to the financial statements for more detail information on the City’s capital assets and changes therein.

Long- Term Debt

CITY OF EDMOND, OKLAHOMA MANAGEMENT’S DISCUSSION & ANALYSIS June 30, 2018

At year-end, the City had $288 million in long-term debt outstanding which represents an increase of $154.1 million or 115% increase from the prior year. The City’s changes in long-term debt by type of debt are as follows: Primary Government Long‐Term Debt (In Thousands)

Governmental Activities

Business‐Type Activities

Total Percentage Change

Total

2018

2017

2018

2017

2018

2017

Accrued absences Revenue bonds Notes payable Capital lease

$ 4,122 42,558 ‐ ‐

$ 3,754 49,259 ‐ ‐

$ 758 227,866 12,347 8

$ 753 66,102 13,688 22

$ 4,880 270,424 12,347 8

$ 4,507 115,361 13,688 22

8% 134% ‐10% ‐64%

Totals

$ 46,680

$ 53,013

$ 240,979

$ 80,565

$ 287,659

$ 133,578

115%

See Note 3.E. to the financial statements for more detail information on the City’s long-term debt and changes therein. ECONOMIC FACTORS AND NEXT YEAR’S BUDGET AND RATES State of Oklahoma – Conditions/Projections Oklahoma State Treasurer Ken Miller’s October/November 2019 Economic Report noted the following:       

Gross revenue totals $12.7 billion from the past 12 months. That is $1.4 billion, or 12.9%, more than collections from the previous 12 months. Gross income taxes generated $4.4 billion for the November 2017 to October 2018 period, reflecting an increase of $427.5 million or 10.8% for the period. Individual income tax collections total $3.9 billion, up by $327.6 million, or 9.2%, from the prior 12 months. Corporate collections are $497.6 million for the period, an increase of $100 million, or 25.1%, over the previous period. Sales taxes for the period generated $4.8 billion, an increase of $433 million, or 9.9%, from the prior year. Oil and gas gross production tax collections brought in $860.2 million during the past 12 months, up $358.4 million, or 71.4%, from the previous 12-month period. Motor vehicle collections total $776.7 million for the period. This is an increase of $14.7 million, or 1.9%, from the trailing period. Other sources generated $1.9 billion, up by $214 million, or 12.9%, from the previous 12 months.

In October 2018, Gross Receipts to the Treasury are the highest on record for October and any 12-month period. At $1.138 billion, October collections are up by 16.1% or $158.3 million, compared to receipts

CITY OF EDMOND, OKLAHOMA MANAGEMENT’S DISCUSSION & ANALYSIS June 30, 2018

from October 2017. Total gross receipts from the past 12 months also painted a positive picture with all major revenue streams except gross income tax showing increases over the prior 12 months.

The tax commission attributes $55.3 million in October to new revenue resulting from legislation enacted during the last regular session. The largest amount, $30.8 million, is tied to an increase from 2 percent to 5 percent in the incentive tax rate on oil and natural gas gross production. Higher tax rates of gasoline and diesel fuel generated a $11.3 million, and the $1 per pack hike in cigarette taxes added $13.2 million to October’s total. The Oklahoma Business Conditions Index has topped growth neutral for 15 consecutive months. The October index was set at 55.0, down from 57.6 in September. Numbers above 50 indicate anticipated economic growth during the next three to six months. September Gross Receipts to the Treasury totaled $1.2 billion, while the General Revenue Fund (GRF), as reported by the Office of Management and Enterprise Services, received $545.1 million, or 47.3%, of the total. The GRF received between 33.5% and 57% of monthly gross receipts during the past 12 months. From September 2018 gross receipts, the GRF received:       

Individual income tax: Corporate income tax: Sales tax: Gross production – Gas: Gross production – Oil: Motor vehicle tax: Other Sources:

69.6% 59.3% 36.5% 77.9% 0.03% 26.1% 42.7%

September insurance premium taxes totaled $55.5 million, a decrease of $1.9 million, or 3.3% less than prior year. Tribal gaming fees generated $12.5 million during the month, up by 9% up from September 2018. Oklahoma unemployment rate drops for September 2018 Oklahoma’s seasonally adjusted unemployment rate of 3.5% in September 2018, was down by two-tenths of a percentage point from August. The U.S. jobless of rate of 3.7% is down by the same percentage from the prior month, according to the Oklahoma Employment Security Commission. Since September 2017, the number of working Oklahomans has risen by 33,494, while the number of those listed as unemployed has dropped by 10,957. Oil field employment set at 55,600 in September, up by 12,800 from two years ago. Oklahoma Economic Indicators  

Energy. After dropping in February 2016 to near $26/barrel for crude oil. Benchmark prices on December 28, 2016, had risen to $53 + for crude oil and WTI pricing for November 1, 2018 was over $60 for crude oil. Energy. For almost 30 months, through October 2018, the active oil and gas rig count had stayed stable or increased, with the exception of a three month period in late 2017 and early



CITY OF EDMOND, OKLAHOMA MANAGEMENT’S DISCUSSION & ANALYSIS June 30, 2018

2018. In October 2018, there were 142 active rigs in Oklahoma, compared to 125 in October 2017 and 53 in October 2016. Employment. Oklahoma County, home of Edmond, unemployment rate was 3.0% in September 2018. This rate is below the unemployment rate for both Oklahoma and the U.S. In September 2018, the strongest employment growth for Oklahoma was in mining and logging (13.8%); wholesale trade (5.8%) and professional and business services (2.8%). Leading Indicators. Federal Reserve Bank leading index from November 2015 through May 2016 for Oklahoma was in negative territory for six out of seven readings. However, the state’s economy has turned around. Since June 2016, the leading index returned to positive readings for the past 28 months, with the September 2018 forecast turned up to a 4.36% percent pace. Overall, Oklahoma’s leading index for September suggests expansion in the state’s economy into the 1st quarter of 2019. Regional indicator. Mid-America Business Conditions, for October 2018, dipped to a solid 55.9 from September 57.6. The business condition index has now remained above the 50.0 threshold for the last 15 months. Anything above 50 suggesting an improvement in economic conditions.

City of Edmond Economic Highlights: Local Sales Tax The City saw a 2.69% increase in sales tax receipts in FY17-18, its main general revenue source – sales tax. After a then record year in FY15-16, collections fell by 1.35% during FY16-17. The City had budgeted for a 1.0% growth in sales tax for FY17-18, so the net increase in revenues exceeded the budgeted amount.

CITY OF EDMOND, OKLAHOMA MANAGEMENT’S DISCUSSION & ANALYSIS June 30, 2018

For FY18-19 budget, City has proposed a 2% growth in sales tax. Through October 2018, the City of Edmond has experienced a growth over previous year sales tax collections for 17 consecutive months. Receipts for November 2018 did not exceed November 2017 receipts. For FY18-19, sales tax collections exceed the same period through November by 4.32%. General Fund receives 53.33% of all sales tax revenue. Use Tax

Effective March 1, 2017, Amazon began to collect Use Tax on direct items sold and delivered within Oklahoma. The City of Edmond received its first remittance which included Amazon collections in May 2017. For FY17-18, net Use Tax collections increased $2,212,076 or 47.4% over FY16-17. In June 2018, South Dakota v. Wayfair was decided by the United States Supreme Court, effectively allowing states and municipalities to levy sales tax without a site within the state. Currently, the State of Oklahoma has over 700 sales/use tax reporters that would be classified as primarily “e-commerce”. Although the City of Edmond had budgeted a 0% increase in Use Tax collections for FY18-19 due to uncertainty of the court case outcome, we have a 34.6% increase in sales tax collections for the first five fiscal months of FY18-19 compared to the same period in FY17-18. We had record use tax receipts in November 2018 and the next highest in October 2018. Combined sales tax/use tax receipts are 9.02% above the same period during FY17-18.

CITY OF EDMOND, OKLAHOMA MANAGEMENT’S DISCUSSION & ANALYSIS June 30, 2018

City of Edmond’s FY18-19 Budget The FY 18-19 Budget direct cost totals $278,009,121, an increase of 2.22% from FY 17-18. The increase is a reflection of both increase of revenues from sales and use tax revenue, plus increased principal and interest payments for Wastewater Recovery and Treatment facility construction. Highlights Include: 

The three sales taxes approved by voters in 2000 continue to provide base revenue for both Public Safety (police and fire) and capital projects. The Fire Department receives a quarter-cent tax, the Police Department, a one-eight cent tax and a three-quarter cent tax is allocated for capital improvements. The net result is almost two-thirds of General Fund revenue is automatically allocated to fire and police operations.



Edmond total sales tax rate remains at 8.25%. This rate is comprised of 3.75% in local taxes and a 4.5% state tax that is charged to all cities. Of the four largest cities in the Oklahoma City metro area, Edmond has the lowest combined sales tax rate.



In April 2016, voters approved two sales tax extensions through March 31, 2027. The one percent General Fund Sales Tax Extension was approved by 80% of the vote. The one-half percent Public Safety Center tax was set to expire March 31, 2017. The voters approved by 73% of the vote an extension of the tax for Capital Improvements. The City Council created a Capital Improvements Advisory Tax Force to examine the funding of major capital projects from this fund. Effective April 1, 2017, 0.5% sales tax rate began collecting funds for the 2017 Capital Improvement Fund. Projects from the replacement tax in the budget for FY17-18 and FY18-19 include Tennis Court development, jointly funded with Edmond Public Schools; implementation of Phase 1 of the Downtown Development Plan; expansion of the Edmond Animal Shelter; Fire Station #2 relocation; Hafer Park Improvements; Gracelawn Cemetery Development; and Soccer Complex improvements.



In October 2017, The Edmond Public Works Authority issued $167,025,000 in Sales Tax and Utility System Revenue bonds. Improvements to be funded by this project primarily consists of a new Wastewater Treatment Recovery Facility that will allow City to serve expected growth for a 20 year period and to satisfy permit requirements established by Oklahoma Department of Environmental Quality. The Edmond PWA have approved annual rate increases through November 2019 for both water and wastewater customers.



In Spring 2019, The Edmond Public Works Authority plans to issue approximately $165 million in Sales Tax and Utility System Revenue bonds for the construction of a new water treatment facility. The new facility will eventually lead to Edmond no longer purchasing water from Oklahoma City and meeting the needs of the our customer base through local water sources.



In 2018, the Arcadia Water Line project was completed with the assistance of a $2.5 million forgivable loan from the Oklahoma Water Resources Board. The project allows Edmond Water to supply water at the wholesale level to the City of Arcadia and allows expansion of the Edmond water system to an area east of Edmond.

CITY OF EDMOND, OKLAHOMA MANAGEMENT’S DISCUSSION & ANALYSIS June 30, 2018

2000 Capital Improvement Sales Tax Fund 

This fund continues to provide the primary financing for capital improvements in Edmond. This ¾ cent tax was initially approved by voters in 1996 and indefinitely extended in 2000.



Construction was completed in 2017 on the Spring Creek Trail from I-35 to Spring Creek Park at Arcadia Lake. This is the first phase of a significant regional trail project that will also receive significant funding from private funding and state grants.



Road improvements on Covell, from Fairfax Boulevard to I-35, were completed in summer 2017. This project includes funding from Oklahoma Department of Transportation (ODOT). This project complements the interchange improvements as part of a major economic development project associated with the development of a Hotel/Conference Center (HCC).



The development of the two northern corners of I-35 & Covell represents the most significant City involvement in an economic development project. The City has committed $11 million from this fund for the purchase of land for the HCC on the northwest corner ($2.2 million), the purchase of land for a proposed Indoor Sports Complex on the northeast corner ($2 million), infrastructure improvements to serve development on the west side of the interchange ($2 million), and funding assistance for the construction HCC ($4.8 million). The HCC opened in December 2017. The executed development agreements provide for the City to be repaid $9 million of the $11 million investment in 15 years as the developers buy out the City’s interest in the land and the conference center improvements. Showbiz Entertainment facility will be completed December 2018 and will include a multi-screen movie theater, multi-lane bowling lanes; an entertainment arcade and eating facilities.



The development of an Intelligent Traffic System (ITS) continues to be an important multi-year capital program, which features improved traffic control equipment at local intersections. The system features continuous communication with a central computer system which allows the traffic signal system to be adjusted in real time to meet specific traffic issues as they arise. The first improvement corridor project completed was along 2nd Street/Edmond Road, from Santa Fe on the west to Boulevard on the east. ODOT funds provided major financial assistance in funding ITS improvements. Design is completed for the next phase, which includes incorporating signals along Broadway.



Results from the previous biennial citizen surveys indicate that traffic issues are the community’s biggest concern. Three projects have been completed. Completed in 2016, with the financial assistance from ODOT, was the turn lane addition at 33rd and Broadway. Construction was completed in Fall 2017 for additional turn lanes at both Santa Fe and Bryant on Covell. Construction was completed in Fall 2017 for additional turn lanes at both Santa Fe and Bryant on Covell. Budgeted for FY 18-19 include improvements at 2nd and Bryant, and improvements on Covell Parkway, from Fairfax to Griffin. In FY18-19, Edmond has budged over $3.2 million in roadway resurfacing and rehabilitation activities.



CITY OF EDMOND, OKLAHOMA MANAGEMENT’S DISCUSSION & ANALYSIS June 30, 2018

For FY18-19, the 2000 CIP is budgeted to implement over $5.6 million in street and transportation related projects.

CONTACTING THE CITY’S FINANCIAL MANAGEMENT TEAM This financial report is designed to provide our citizens, customers and creditors with a general overview of the City’s finances and to show the City’s accountability for the money it receives. If you have questions about this report or need additional information, contact the Finance office at 7 N. Broadway, P.O. Box 2970, Edmond, OK 73083-2970 or call 405-359-4521.

BASIC FINANCIAL STATEMENTS

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CITY OF EDMOND, OKLAHOMA ANNUAL FINANCIAL REPORT June 30, 2018 City of Edmond, Oklahoma Statement of Net Position June 30, 2018 Primary Government Governmental Activities ASSETS Current Assets: Cash and equivalents Investments Restricted assets: Cash and equivalents Investments Accrued interest receivable Accounts receivable, net of allowance Internal Balances Notes receivable Due from other governments Inventory Total Current Assets Non-current Assets: Restricted assets: Cash and equivalents Investments Derivative instruments Capital Assets: Non-depreciable Depreciable, net of depreciation Total Non-current Assets

15,286,579 70,575,301

Business-type Activities

11,156,743 1,462,220 238,347 1,528,225 (8,078,634) 11,312,397 1,193,109 104,674,287

Total Assets DEFERRED OUTFLOWS OF RESOURCES Deferred charge on refunding Deferred amounts related to pension Deferred amounts related to OPEB Total deferred outflow of resources LIABILITIES Current Liabilities: Accounts payable and other accrued expenses Accrued interest payable Amounts held in escrow Matured revenue bonds payable Meter deposit liability Unearned revenue Current portion: Capital lease obligations Notes payable Revenue bonds payable Compensated absences Estimated liability for claims Total Current Liabilities Non-current Liabilities: Compensated absences Meter deposit liability Total OPEB liability Net pension liability Capital lease obligations Revenue bonds payable, net Notes payable Claims and judgments Total Non-current Liabilities Total Liabilities DEFERRED INFLOWS Accumulated increase in fair value of hedging derivatives Deferred amounts related to pension Deferred amounts related to OPEB Total deferred inflow of resources

12,127,152 121,690,759

Component Units Historic Economic Preservation Development Trust Authority

Total

27,413,731 192,266,060

50,295 -

424,356 -

52,850,939 74,105,655 412,681 24,065,659 8,078,634 12,474 2,871,914 296,215,867

64,007,682 75,567,875 651,028 25,593,884 11,324,871 4,065,023 400,890,154

50,295

41,326 813 159,571 626,066

4,087,418 3,829,363 1,214,222

13,749,213 73,616,621 514,795

17,836,631 77,445,984 1,729,017

43,852,969 284,137,450 337,121,422

82,754,746 210,090,975 380,726,350

126,607,715 494,228,425 717,847,772

100,450 76,887 177,337

14,259 14,259

441,795,709

676,942,217

1,118,737,926

227,632

640,325

892,275 18,611,337 162,761 19,666,373

489,079 2,394,536 38,379 2,921,994

1,381,354 21,005,873 201,140 22,588,367

71,749 71,749

4,279,342 866,457 336,493 6,701,397 4,970,596

17,083,289 4,958,813 462,954 61,749

21,362,631 5,825,270 336,493 6,701,397 462,954 5,032,345

4,383 -

6,956,633 412,198 1,268,167 25,791,283

2,517 1,381,110 5,358,360 75,795 29,384,587

2,517 1,381,110 12,314,993 487,993 1,268,167 55,175,870

3,502 7,885

3,709,863 4,934,513 60,381,269 38,525,357 1,753,722 109,304,724

682,162 4,362,923 1,163,502 5,248,686 5,109 243,572,005 10,966,051 266,000,438

4,392,025 4,362,923 6,098,015 65,629,955 5,109 282,097,362 10,966,051 1,753,722 375,305,162

31,516 156,863 188,379

135,096,007

295,385,025

430,481,032

196,264

1,214,222 3,201,876 261,133 4,677,231

514,795 126,804 61,572 703,171

1,729,017 3,328,680 322,705 5,380,402

23,058 23,058

286,812,679

212,908,949

499,721,628

177,337

14,259

7,817,604 2,301,121 54,039,545 (29,282,105) 321,688,844

23,678,437 147,188,629 383,776,015

7,817,604 2,301,121 77,717,982 117,906,524 705,464,859

50,295 227,632

41,326 437,167 492,752

NET POSITION Net investment in capital assets Restricted by: Enabling legislation Statutory requirements External contracts Unrestricted (deficit) Total Net Position

See accompanying notes to the basic financial statements.

CITY OF EDMOND, OKLAHOMA ANNUAL FINANCIAL REPORT June 30, 2018

City of Edmond, Oklahoma Statement of Activities For the Year Ended June 30, 2018

Functions/Programs Primary government Governmental Activities General government Public safety Streets and highways Cultural, parks and recreation Health and welfare Interest on long-term debt Total governmental activities

Business-type activities Electric operations Water operations Wastewater operations Sanitation operations Lake operations Drainage operations Golf course operations Cooperative purchasing services Transportation operations Total business-type activities Total primary government Component Units Cultural, parks and recreation Economic development Total component units

Charges for Services

Expenses

6,888,698 52,589,259 16,312,414 7,861,311 1,915,800 1,261,914 86,829,396

83,960,339 19,607,242 15,607,025 7,046,014 1,469,855 880,609 2,070,410 74,898 1,391,561 132,107,953

7,828,234 1,384,049 11,010 149,433 861,021 10,233,747

Program Revenue Operating Grants and Contributions

96,084,847 28,945,349 18,329,678 9,341,779 1,072,563 1,823,590 1,976,462 92,670 325,498 157,992,436

378,279 4,802,114 749,819 35,088 5,965,300

Capital Grants and Contributions

Governmental Activities

7,993,631 40,919 8,034,550

867,219 3,093 389,439 1,259,751

(62,595,799)

218,937,349

168,226,183

7,225,051

16,146,214

49,702 580,401 630,103

21,575 21,575

1,317,815 (46,403,096) (7,557,954) (7,635,871) (1,054,779) (1,261,914) (62,595,799)

5,319,993 2,791,671 8,111,664

Net (Expense) Revenue and Changes in Net Position Component Units Primary Government Historic Economic Business-type Preservation Development Activities Total Trust Authority

General revenues: Taxes: Sales and use taxes Sales and use taxes - Restricted for public safety Sales and use taxes - Restricted for park and recreation Sales and use taxes - Restricted for capital improvements Hotel/motel taxes Franchise taxes Payment from City of Edmond Grants and contributions not restricted to specific programs Unrestricted investment earnings Miscellaneous Transfers Total general revenues and transfers Change in net position Net position - beginning, restated

41,601,211 15,175,675 2,167,676 13,006,050 520,259 2,178,428 1,056,904 838,366 829,258 3,956,561 81,330,388 18,734,589 302,954,255

Net position - ending

321,688,844

See accompanying notes to the basic financial statements.

12,991,727 14,658,100 5,517,417 2,295,765 (397,292) 942,981 (93,948) 17,772 (676,624) 35,255,898

35,255,898

(27,339,901)

2,479,408 3,514 (3,956,561) (1,473,639) 33,782,259 349,993,756 $

1,317,815 (46,403,096) (7,557,954) (7,635,871) (1,054,779) (1,261,914) (62,595,799)

383,776,015

41,601,211 15,175,675 2,167,676 13,006,050 520,259 2,178,428 1,056,904 3,317,774 832,772 79,856,749 52,516,848 652,948,011 $

705,464,859

(49,702) (49,702)

(558,826) (558,826)

20,000 45 1,379 21,424 (28,278) 255,910

574,420 6,419 580,839 22,013 470,739

227,632

492,752

CITY OF EDMOND, OKLAHOMA ANNUAL FINANCIAL REPORT June 30, 2018

City of Edmond, Oklahoma Balance Sheet Governmental Funds June 30, 2018

General Fund ASSETS Cash and cash equivalents Investments Due from other funds Due from other governments Accrued interest receivable Other receivables Interfund loan receivable Total assets

LIABILITIES, DEFERRED INFLOWS AND FUND BALANCES Liabilities: Accounts payable $ Due to other funds Unearned revenue Matured revenue bonds payable Amounts held in escrow Total liabilities

542,976 111,273 336,493 990,742

Deferred Inflows of Resources: Unavailable revenue Total deferred inflows of resources

521,148 521,148

29,548 29,548

14,832 14,832

23,965 23,965

3,364,662 2,720,331 6,731,159 12,816,152 14,328,042

12,860,886 961,787 13,822,673 14,674,919

5,436,821 1,146,065 6,582,886 7,426,851

20,413,064 3,857,051 24,270,115 32,363,281

1,202,664 12,770,916 659,752 41,587 14,674,919

822,698 822,698

616,097 6,410,603 377,275 20,876 2,000 7,426,851

2000 Capital Improvement Tax Fund

520,963 5,133,880 1,177,727 6,411,730 20,310 1,063,432 14,328,042

Fund balances: Restricted Committed Assigned Unassigned Total fund balances Total liabilities, deferred inflows and fund balances

Police Public Safety Limited Tax Fund

Fire Public Safety Limited Tax Fund

829,133 829,133

See accompanying notes to the basic financial statements.

Total Governmental Funds

Other Governmental Funds

16,148,373 14,134,956 1,979,254 33,730 66,968 32,363,281

501,347 7,567,854 8,069,201

9,471,597 12,247,622 1,694,946 39,883 107,515 23,561,563

221,649 1,179,980 1,401,629

28,337 28,337

20,536,892 3,175 1,719,686 (128,156) 22,131,597 23,561,563

27,959,694 50,697,977 1,177,727 11,122,957 156,386 1,237,915 2,000 92,354,656

2,917,803 1,179,980 111,273 7,567,854 336,493 12,113,403

617,830 617,830

62,612,325 3,175 10,404,920 6,603,003 79,623,423 92,354,656

CITY OF EDMOND, OKLAHOMA ANNUAL FINANCIAL REPORT June 30, 2018 City of Edmond, Oklahoma Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position June 30, 2018 Total fund balance, governmental funds

79,623,423

Amounts reported for governmental activities in the Statement of Net Position are different because: Capital assets used in governmental activities are not current financial resources and therefore are not reported in the funds, net of accumulated depreciation of $226,576,421

309,903,833

Certain other long-term assets are not available to pay current fund liabilities and therefore they, along with deferred outflows, are deferred in the funds: Accrued interest receivable Other receivables, net of allowance Pension related deferred outflows OPEB related deferred outflows Deferred amount on refunding

111,111 506,719 14,657,814 95,320 892,275

Certain long-term liabilities are not due and payable from current financial resources and therefore they, along with deferred inflows, are not reported in the funds: Revenue bonds payable Accrued compensated absences Unamortized debt premium Net pension liability Pension related deferred inflows Total OPEB liablity OPEB related deferred inflows Advance Deferred amount related to derivative instrument

(42,557,551) (3,048,509) (2,924,439) (51,385,384) (3,122,211) (2,889,849) (152,930) (4,859,323) 1,214,222

Accumulated increase in fair value of hedging derivatives is a deferred inflow

(1,214,222)

Internal service funds are used by management to charge costs of certain activities that benefit multiple funds, such as self-insurance, vehicle maintenance, and other such costs, to individual funds. The assets and liabilities of certain of these internal service funds are reported in governmental activities in the Statement of Net Position: Internal service funds' net position Internal service fund interfund balance resulting from net revenues reported in business-type activities

Net Position of Governmental Activities in the Statement of Net Position

34,914,926 (8,076,381)

See accompanying notes to the basic financial statements.

321,688,844

CITY OF EDMOND, OKLAHOMA ANNUAL FINANCIAL REPORT June 30, 2018

City of Edmond, Oklahoma Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds For the Year Ended June 30, 2018 Fire Public Safety Limited Tax Fund

General Fund REVENUES Sales and use taxes Franchise and public service taxes Hotel/motel taxes Intergovernmental Charges for services Fines and forfeitures Licenses and permits Investment income Miscellaneous Total revenues

EXPENDITURES Current: General government Public safety Health and sanitation Culture, parks and recreation Streets and highways Debt Service: Principal Interest and other charges Capital Outlay Total Expenditures Excess (deficiency) of revenues over expenditures OTHER FINANCING SOURCES (USES) Transfers in Transfers out Total other financing sources and uses Net change in fund balances Fund balances - beginning Fund balances - ending

41,601,211 2,173,068 1,819,583 6,054,249 1,628,740 1,446,443 73,971 222,053 55,019,318

4,335,350 3,524,520 12,000 131,089 56,410 8,059,369

Police Public Safety Limited Tax Fund $

2,167,675 1,540,247 72,239 34,741 3,814,902

2000 Capital Improvement Tax Fund $

13,006,050 353,448 126,968 13,486,466

Other Governmental Funds

Total Governmental Funds

10,840,326 520,259 377,679 915,479 137,720 382,982 13,174,445

71,950,612 2,173,068 520,259 7,262,029 6,981,728 1,628,740 1,446,443 768,467 823,154 93,554,500

5,545,128 2,987,164 692,581 4,078,792 5,488,301 455,971 19,247,937

24,221,274 -

24,165,338 -

92,160 -

679,967 59,777 968,867 1,043,446 -

6,317,255 51,433,553 1,661,448 5,122,238 5,488,301

623,620 24,844,894

24,165,338

6,701,397 1,597,915 5,830,251 14,221,723

2,158,217 4,910,274

6,701,397 1,597,915 9,068,059 87,390,166

35,771,381

(16,785,525)

(20,350,436)

(735,257)

8,264,171

6,164,334

18,538,679 (51,036,467) (32,497,788) 3,273,593

17,723,760 17,723,760 938,235

19,901,146 19,901,146 (449,290)

1,111,010 (144,042) 966,968 231,711

1,604,487 (3,742,012) (2,137,525) 6,126,646

58,879,082 (54,922,521) 3,956,561 10,120,895

9,542,559

12,884,438

7,032,176

16,004,951

69,502,528

12,816,152

13,822,673

6,582,886

24,038,404 $

See accompanying notes to the basic financial statements.

24,270,115

22,131,597

79,623,423

CITY OF EDMOND, OKLAHOMA ANNUAL FINANCIAL REPORT June 30, 2018

City of Edmond, Oklahoma Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities For the Year Ended June 30, 2018

Net change in fund balances - total governmental funds:

10,120,895

Amounts reported for Governmental Activities in the Statement of Activities are different because: Governmental funds report capital outlays as expenditures while governmental activities report depreciation expense to allocate those expenditures over the life of the assets: Capital asset purchases capitalized Capital assets donated Depreciation expense Disposal of capital assets

8,823,588 7,781,821 (16,835,814) (40,132)

In the Statement of Activities, the cost of pension benefits earned net of employee contributions is reported as an element of pension expense. The fund financial statements report pension contributions as expenditures.

(156,496)

Governmental funds report bond issuance costs as expenditures and bond premiums as revenue while governmental activities report amortization and interest expense to allocate those expenditures over the term of the bonds: Amortization expense Interest expense

(165,454) 501,456

Revenues in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds: Advance Court Interest

311,828 53,496 69,899

Bond proceeds provide current financial resources to governmental funds, but issuing debt increases long-term liabilities in the Statement of Net Position. Repayment of debt principal is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the Statement of Net Position: Revenue bond principal payment

6,701,396

Some expenses reported in the statement of activities do not require the use of current financial resources and these are not reported as expenditures in governmental funds: Accrued compensated absences change Total OPEB liability change

(316,438) (128,129)

Internal service fund activity is reported as a proprietary fund in the fund financial statements, but certain net revenues are reported in governmental activities on the statement of Activities: Total change in net position for internal service funds Net revenues of internal service funds reported in business-type activities Change in net position of governmental activities See accompanying notes to the basic financial statements.

2,309,636 (296,963) $

18,734,589

CITY OF EDMOND, OKLAHOMA ANNUAL FINANCIAL REPORT June 30, 2018

City of Edmond, Oklahoma Statement of Net Position Proprietary Funds June 30, 2018 Edmond Public Works Authority (EPWA) Enterprise Funds

Electric Fund ASSETS Current assets: Cash and cash equivalents $ 3,569,588 Investments 33,681,483 Restricted assets: Cash and cash equivalents Investments 3,528,842 Receivables: Accrued interest receivable 120,989 Utility billing, net of allowance for uncollectible accounts 15,992,396 Due from other governments Other receivables 561,574 Due from other funds 299,864 Inventories 2,790,840 Total current assets 60,545,576 Non-current assets: Restricted assets: Cash and cash equivalents 21,189 Investments 57,054 Derivative instruments Capital Assets: Nondepreciable 194,332 Depreciable, net of accumulated depreciation 44,733,314 Total non-current assets 45,005,889 Total assets 105,551,465 DEFERRED OUTFLOWS OF RESOURCES Deferred charge on refunding Deferred amounts related to pensions Deferred amounts related to OPEB Total deferred outflows of resources LIABILITIES Current Liabilities: Accounts payable Salaries payable Accrued interest payable Due to other funds Current portion: Compensated absences Capital lease obligation Claims and judgments Notes payable Revenue bonds payable Unearned revenue Meter deposit liability Total current liabilities Non-current liabilities: Compensated absences Meter deposit liability Claims and judgments Capital lease obligation Total OPEB liability Net pension liability Notes payable Revenue bonds payable, net Total non-current liabilities Total liabilities DEFERRED INFLOW OF RESOURCES Accumulated increase in fair value of hedging derivatives Deferred amounts related to pensions Deferred amounts related to OPEB Total deferred inflow of resources NET POSITION Net investment in capital assets Restricted for debt service Restricted for scholarships Restricted for other purposes Unrestricted Total net position

Wastewater Fund

Water Fund

3,434,757 45,657,211

3,538,647 25,911,845

Other Enterprise Funds

1,584,160 16,440,220

Total

12,127,152 121,690,759

Internal Service Funds

2,435,500 23,758,508

5,229,234 1,932,385

47,117,257 68,195,772

504,448 448,656

52,850,939 74,105,655

151,575 4,060,079 122 8,869 54,920 60,529,152

85,572 2,045,503 30,062 146,924,658

54,545 1,301,215 12,352 96,023 890,136 81,074 21,412,829

412,681 23,399,193 12,474 666,466 1,274,982 2,871,914 289,412,215

81,961 189,440 290,310 54 1,191,109 27,946,882

1,209,544 1,922,263 514,795

12,385,942 71,385,734 -

132,538 251,570 -

13,749,213 73,616,621 514,795

135,546 1,410,399 -

26,946,844 95,406,097 125,999,543 186,528,695

53,950,455 58,140,617 195,862,748 342,787,406

1,663,115 11,810,947 13,858,170 35,270,999

82,754,746 210,090,975 380,726,350 670,138,565

734,968 17,351,618 19,632,531 47,579,413

10,676 987,541 14,181 1,012,398

407,371 484,210 8,247 899,828

10,003 255,500 3,721 269,224

61,029 667,285 12,230 740,544

489,079 2,394,536 38,379 2,921,994

3,953,523 67,441 4,020,964

6,959,868 185,295 11,700 470,496

842,327 81,531 615,709 255,117

8,142,088 39,080 4,281,673 195,039

681,781 151,319 49,731 352,077

16,626,064 457,225 4,958,813 1,272,729

616,227 745,312 54

35,096 2,517 62,995 333,071 8,061,038

12,801 1,381,110 2,136,609 66,283 5,391,487

5,523 2,894,645 32,855 15,590,903

22,375 264,111 61,749 30,745 1,613,888

75,795 2,517 1,381,110 5,358,360 61,749 462,954 30,657,316

107,347 1,268,167 2,737,107

315,863 3,198,493 5,109 429,910 2,309,925 486,820 6,746,120 14,807,158

115,207 596,544 250,019 992,139 10,966,051 19,762,754 32,682,714 38,074,201

49,705 295,692 112,813 462,430 221,272,684 222,193,324 237,784,227

201,387 272,194 370,760 1,484,192 2,049,747 4,378,280 5,992,168

682,162 4,362,923 5,109 1,163,502 5,248,686 10,966,051 243,572,005 266,000,438 296,657,754

966,205 1,753,722 2,044,664 8,995,885 13,760,476 16,497,583

54,659 22,751 77,410

514,795 13,758 13,231 541,784

13,858 5,970 19,828

44,529 19,620 64,149

514,795 126,804 61,572 703,171

79,665 108,203 187,868

44,380,881 63,821 47,234,593 91,679,295

89,598,052 7,930,626 51,283,860 148,812,538

67,708,783 14,699,448 22,844,344 105,252,575

11,221,233 984,542 1,601 17,747,850 29,955,226

212,908,949 23,678,437 1,601 139,110,647 375,699,634

18,086,586 1,545,945 15,282,395 34,914,926

Some amounts reported for business-type activities in the Statement of Net Position are different because certain internal service fund balances are included with business-type activities and reported as interfund balances Total net position per Government-Wide financial statements

8,076,381 $

See accompanying notes to the basic financial statements.

383,776,015

CITY OF EDMOND, OKLAHOMA ANNUAL FINANCIAL REPORT June 30, 2018

City of Edmond, Oklahoma Statement of Revenues, Expenses and Changes in Fund Net Position Proprietary Funds For the Year Ended June 30, 2018 Edmond Public Works Authority (EPWA) Enterprise Funds

Electric Fund OPERATING REVENUES Charges for services Permits and other fees Operating grants and contributions Miscellaneous Total operating revenues

96,597,843 155,146 28,525 96,781,514

Wastewater Fund

Water Fund $

27,320,090 1,506,709 118,140 28,944,939

OPERATING EXPENSES Personal services Materials and supplies Wholesale electricity purchases Maintenance, operations and contractual services Insurance premium expense Claims expense Depreciation Total Operating Expenses Operating income

4,918,266 830,300 63,504,430 11,402,104 3,237,545 83,892,645 12,888,869

2,190,512 1,007,522 7,911,907 7,121,800 18,231,741 10,713,198

NON-OPERATING REVENUES (EXPENSES) Interest and investment revenue Miscellaneous revenue Gain (Loss) on capital asset disposal Interest expense Miscellaneous expenses Total non-operating revenue (expenses) Income before contributions and transfers Capital contributions Transfers in Transfers out Change in net position Total net position - beginning, restated Total net position - ending

446,430 170,552 (20,673) 596,309 13,485,178 75 (4,027,915) 9,457,338 82,221,957 91,679,295

611,539 3,503 (1,163,616) (548,574) 10,164,624 5,319,993 13,647,100 (13,899,790) 15,231,927 133,580,611 148,812,538

17,466,896 840,434 18,307,330

Other Enterprise Funds $

155,829,323 2,347,143 544,585 334,650 159,055,701

Internal Service Funds $

49,421,822 221,303 49,643,125

3,605,963 975,634 8,527,534 408,937 13,518,068 1,503,850

11,733,998 3,304,127 63,504,430 33,333,783 13,300,875 125,177,213 33,878,488

19,792,989 3,598,754 12,047,723 1,545,828 8,623,718 2,332,172 47,941,184 1,701,941

196,034 (20,952) (94,856) 83 80,309 1,584,159 935,018 (358,300) 2,160,877 27,794,349 29,955,226

2,479,408 199,917 (20,952) (7,206,751) 83 (4,548,295) 29,330,193 8,111,664 14,582,193 (18,538,754) 33,485,296 342,214,338 375,699,634

287,298 209,072 (100,485) 395,885 2,097,826 211,810 2,309,636 32,605,290 34,914,926

Change in net position, per above Some amounts reported for business-type activities in the Statement of Activities are different because the net revenue of certain internal service funds is reported with business-type activities

33,485,296

Change in Business-Type Activities in Net Position per Government-Wide Financial Statements

1,019,257 490,671 5,492,238 2,532,593 9,534,759 8,772,571

14,444,494 389,439 187,985 15,021,918

Total

1,225,405 25,862 (5,927,606) (4,676,339) 4,096,232 2,791,671 (252,749) 6,635,154 98,617,421 105,252,575

See accompanying notes to the basic financial statements.

296,963 33,782,259

CITY OF EDMOND, OKLAHOMA ANNUAL FINANCIAL REPORT June 30, 2018

City of Edmond, Oklahoma Statement of Cash Flows Proprietary Funds For the Year Ended June 30, 2018 Edmond Public Works Authority (EPWA) Enterprise Funds

Electric Fund CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers Payments to suppliers Payments to employees Receipts of customer meter deposits Payment of customer meter deposits Claims and judgments paid Interfund payments Interfund receipts Net cash provided by operating activities

94,525,733 (75,615,435) (4,693,900) 2,547,515 (2,279,888) 69,367 14,553,392

Wastewater Fund

Water Fund $

28,641,671 (10,489,161) (2,052,046) 14,301 16,114,765

17,926,416 (48,319) (955,534) 6,863 16,929,426

Other Enterprise Funds

Total Enterprise Funds

Internal Service Funds

15,035,109 (9,504,862) (3,454,886) (500) (98,166) 7,635 1,984,330

156,128,929 (95,657,777) (11,156,366) 2,547,515 (2,280,388) (98,166) 98,166 49,581,913

49,748,437 (17,782,894) (18,749,834) (9,519,030) 3,696,679

CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Transfers from other funds Transfer to other funds Net cash provided by (used in) noncapital financing activities

75 (4,027,915) (4,027,840)

13,647,100 (13,899,790) (252,690)

(252,749) (252,749)

935,018 (358,300) 576,718

14,582,193 (18,538,754) (3,956,561)

CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Purchase of capital assets Premium on capital debt issued Proceeds from issuance of capital debt Principal paid on capital debt Interest paid on capital debt Net cash provided by (used in) capital and related financing activities

(3,083,512) (112,699) (24,875) (3,221,086)

(12,630,439) 2,449,479 (5,189,872) (1,321,020) (16,691,852)

(37,026,031) 15,862,587 167,025,000 (739,218) (3,592,119) 141,530,219

(60,577) (574,640) (109,198) (744,415)

(52,800,559) 15,862,587 169,474,479 (6,616,429) (5,047,212) 120,872,866

(2,422,852) (2,422,852)

(10,399,646) 447,681 (9,951,965)

(9,999,289) 607,094 (9,392,195)

(141,145,974) 1,483,882 (139,662,092)

(3,928,056) 883 203,679 (3,723,494)

(165,472,965) 883 2,742,336 (162,729,746)

(4,819,830) 792,878 283,969 (3,742,983)

(2,647,499)

(10,221,972)

18,544,804

(1,906,861)

CASH FLOWS FROM INVESTING ACTIVITIES Purchases of investments Sale of investments Interest and dividends Net cash provided by (used in) investing activities Net increase (decrease) in cash and cash equivalents Balances-beginning of year Balances-end of year

Reconciliation to Combining Statement of Net Position: Cash and cash equivalents Restricted cash and cash equivalents Restricted cash and cash equivalents, non-current Total cash and cash equivalents, end of year

6,238,276

44,497,042

3,768,472

4,128,007

(2,469,156)

74,958,832

5,040,202

3,590,777

9,873,535

63,041,846

2,221,146

78,727,304

2,571,046

3,569,588 21,189 3,590,777

12,127,152 52,850,939 13,749,213 78,727,304

1,584,160 504,448 132,538 2,221,146

3,538,647 47,117,257 12,385,942 63,041,846

3,434,757 5,229,234 1,209,544 9,873,535

2,435,500 135,546 2,571,046

12,888,869

10,713,198

8,772,571

1,503,850

33,878,488

1,701,941

Reconciliation of Operating Income to Net Cash Provided by Operating Activities: Operating income $ Adjustments to reconcile operating income (loss) to net cash provided by operating activities: Depreciation expense Miscellaneous non-operating revenue (expense) Change in assets and liabilities: Receivables, net Other receivable Inventories Due from other funds Deferred outflows related to pension Deferred outflows related to OPEB Accounts and other payables Due to other funds Customer meter deposits payable Unearned revenue Claims liability Total OPEB liability Net Pension liability Deferred inflows related to pension Deferred inflows related to OPEB Accrued compensated absences $ Net cash provided by operating activities Non-cash Activities: Capital assets donated Principal debt forgiveness Change in fair value of investments Total Non-cash Activities

20,095,507

3,237,545 170,552

7,121,800 3,503

2,532,593 25,862

408,937 83

13,300,875 200,000

2,332,172 209,072

(1,960,480) (465,853) (424,939) 69,367 483,811 (964) 543,156 267,627 (2,726) (288,388) 16,269 22,751 (3,205) 14,553,392

(312,684) 5,913 14,301 131,756 (561) (1,564,784) (1,585) (32,823) 6,025 13,231 17,475 16,114,765

(406,776) 6,863 66,691 (253) 5,937,520 (716) (14,420) 1,360 5,970 2,161 16,929,426

(48,641) (10,508) 7,635 290,173 (831) 13,960 (98,166) (500) 61,749 (2,350) (170,163) 21,075 19,620 (11,593) 1,984,330

(2,728,581) (459,940) (435,447) 98,166 972,431 (2,609) 4,929,852 (98,166) 267,127 61,749 (7,377) (505,794) 44,729 61,572 4,838 49,581,913

(103,760) (128,387) (54) (4,584) (432,261) 54 (895,312) (12,964) 871,271 108,203 51,288 3,696,679

69,187 69,187

2,870,514 2,449,479 72,481 5,392,474

See accompanying notes to the basic financial statements.

2,791,671 295,334 3,087,005

36,387 36,387

5,662,185 2,449,479 473,389 8,585,053

211,810 36,726 248,536

CITY OF EDMOND, OKLAHOMA ANNUAL FINANCIAL REPORT June 30, 2018

City of Edmond, Oklahoma Statement of Fiduciary Net Position Fiduciary Funds June 30, 2018

Pension Trust Fund ASSETS Cash and cash equivalents Accrued interest Total cash and cash equivalents Investments at fair value: Common stock Pooled equity funds Pooled fixed income funds Alternative-open end mutual funds Total investments Other receivable Total assets

LIABILITIES Accounts payable Due to other governments Refunds payable and others Total liabilities NET POSITION Net position restricted for pension

452,020 63,566 515,586

Agency Funds $

922,934 42,244,409 17,472,167 12,637,022 73,276,532 15,108 73,807,226

485,140

15,108 15,108

18,515 466,625 485,140

73,792,118

See accompanying notes to the basic financial statements.

485,140 485,140

CITY OF EDMOND, OKLAHOMA ANNUAL FINANCIAL REPORT June 30, 2018

City of Edmond, Oklahoma Statement of Changes in Fiduciary Net Position Fiduciary Funds For the Year Ended June 30, 2018

Pension Trust Fund ADDITIONS Contributions: Employer Plan Members Total contributions Investment earnings: Investment income Change in fair value of investments Investment activity expense Total net investment earnings Total additions

2,621,560 1,478,406 4,099,966 2,338,304 1,641,654 (161,946) 3,818,012 7,917,978

DEDUCTIONS Benefits Refunds of contributions Administrative Miscellaneous expense Total deductions

2,897,760 1,637,450 3,052 (5,522) 4,532,740

Change in net position

3,385,238

Net position - beginning Net position - ending

70,406,880 73,792,118

See accompanying notes to the basic financial statements.

THIS PAGE INTENTIONALLY LEFT BLANK

NOTES TAB

CITY OF EDMOND, OKLAHOMA ANNUAL FINANCIAL REPORT June 30, 2018

NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. FINANCIAL REPORTING ENTITY B. BASIS OF PRESENTATION C. MEASUREMENT FOCUS AND BASIS OF ACCOUNTING D. ASSETS, LIABILITIES, DEFERRED OUTFLOWS/INFLOWS OF RESOURCES AND NET POSITION/FUND BALANCE E. INTERNAL AND INTERFUND BALANCES AND ACTIVITIES F. REVENUES, EXPENDITURES AND EXPENSES G. USE OF ESTIMATES H. NEW ACCOUNTING PRONOUNCEMENTS

NOTE 2. STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY A. FUND BALANCES AND NET POSITION B. DEPOSITS AND INVESTMENTS REQUIREMENTS C. DEBT RESTRICTIONS AND COVENANTS

NOTE 3. DETAIL NOTES - TRANSACTION CLASSES/ACCOUNTS A. DEPOSIT AND INVESTMENT RISKS B. RECEIVABLES C. RESTRICTED ASSETS D. CAPITAL ASSETS E. LONG-TERM DEBT F. INTERFUND BALANCES AND ACTIVITIES G. FUND BALANCES AND NET POSITION

NOTE 4. OTHER NOTES A. EMPLOYEE PENSION AND OTHER BENEFIT PLANS B. RISK MANAGEMENT C. COMMITMENTS AND CONTINGENCIES D. RECENTLY ISSUED ACCOUNTING STANDARDS E. ECONOMIC DEVELOPMENT

CITY OF EDMOND, OKLAHOMA ANNUAL FINANCIAL REPORT June 30, 2018

NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The City of Edmond’s (the City) accounting and financial reporting policies conform to accounting principles generally accepted in the United States of America (GAAP). GAAP includes all relevant Governmental Accounting Standards Board (GASB) pronouncements. The accounting and reporting framework and the more significant accounting policies are discussed in subsequent subsections of this Note. 1.A. FINANCIAL REPORTING ENTITY The City’s financial reporting entity comprises the following: Primary Government:

City of Edmond

Blended Component Unit:

Edmond Public Works Authority

Discretely Presented Component Units: Edmond Economic Development Authority Edmond Historic Preservation Trust In determining the financial reporting entity, the City complies with the provisions of Governmental Accounting Standards Board Statement No. 14, 34, 39, and 61 and includes all component units of which the City is fiscally accountable. Each of these component units are Public Trusts established pursuant to Title 60 of Oklahoma State law. Public Trusts (Authorities) have no taxing power. The Authorities are generally created to finance City services through issuance of revenue bonds or other non-general obligation debt and to enable the City Council to delegate certain functions to the governing body (Trustees) of the Authority. The Authorities generally retain title to assets which are acquired or constructed with Authority debt or other Authority generated resources. In addition, the City has leased certain existing assets at the creation of the Authorities to the Trustees on a long-term basis. The City, as beneficiary of the Public Trusts, receives title to any residual assets when a Public Trust is dissolved. BLENDED COMPONENT UNITS Blended component units are separate legal entities that meet the GASB 14, 39 and 61 component unit criteria and whose governing body is the same or substantially the same as the City Council or the component unit provides services entirely to the City. These component units’ funds are blended into the City’s by appropriate fund type to comprise part of the primary government presentation. One component unit is blended into the primary government’s fund types as presented below: Brief Description/Inclusion Criteria

Component Unit Edmond Public Works Authority

(EPWA)

Created October 6, 1970, to finance, develop and operate the water, sewer, garbage, electric, lake and drainage facilities. Also, the Authority operates and maintains the City’s golf course facility. The current City Council serves as the governing body (Trustees) of the EPWA and the city is responsible for daily operations. The City is able to impose its will on the EPWA because, by state law, all EPWA issuances of debt require a two-thirds approval of the City Council. The EPWA funds are reported as enterprise funds within the primary government presentation.

CITY OF EDMOND, OKLAHOMA ANNUAL FINANCIAL REPORT June 30, 2018

DISCRETELY PRESENTED COMPONENT UNITS Discretely presented component units are separate legal entities that meet the GASB 14 component unit criteria but do not meet the criteria for blending. The City has two component units that are discretely presented in the Cityâ&#x20AC;&#x2122;s report as presented below: Edmond Economic Development Authority Created June 17, 1969, to promote and encourage the general (EEDA) economic and social development within or near the City of Edmond, Oklahoma. The Authority provides financing to businesses for the purpose of acquiring facilities for industrial, manufacturing, and charitable enterprises in or near the City. The EEDA governing body is appointed by the full City Council. All issuances of debt require a two-thirds approval of the City Council and the EEDA Trustees. Complete financial statements of the Economic Development Authority component unit can be obtained from: Edmond Economic Development Authority 825 E. 2nd, Suite 200 Edmond, OK 73034 Edmond Historic Preservation Trust (EHPT)

Created November 15, 1982 to preserve the qualities relating to the history of the City in order to promote the economic and general welfare of the people of the City of Edmond and to ensure the harmonious, orderly and efficient growth and development of the municipality. The EHPT governing body is appointed by the current City Council. The City is able to impose its will on the EHPT because, pursuant to state law, all issuance of EHPT debt requires a two-thirds approval of the City Council. The EHPT component unit does not issue separate financial statements.

1.B. BASIS OF PRESENTATION Government-Wide Financial Statements: The statement of net position and statement of activities display information about the City as a whole including component units. They include all financial activities of the reporting entity except for fiduciary activities. Eliminations have been made to minimize the double reporting of transactions involving internal activities. Individual funds are not displayed in these statements. Instead, the statements distinguish between governmental and business-type activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other non-exchange revenues. Business-type activities are financed in whole or in part by fees charged to external parties for goods or services. The statement of activities presents a comparison between the expenses and program revenues directly associated with the different governmental functions and business-type activities to arrive at the net revenue or expense of the function or activity prior to the use of taxes and other general revenues. Program revenues include (1) fees, fines, and service charges generated by the program or activity, (2) operating grants and contributions that are restricted to meeting the operational requirements of the program or activity, and (3) capital grants and contributions that are restricted to meeting the capital requirements of the program or activity.

CITY OF EDMOND, OKLAHOMA ANNUAL FINANCIAL REPORT June 30, 2018

Fund Financial Statements: Fund financial statements of the reporting entity are organized into funds, each of which is considered to be separate accounting entities. Each fund is accounted for by providing a separate set of self-balancing accounts which constitute its assets, deferred outflows, liabilities, deferred inflows, fund equity, revenues, and expenditures/expenses. Separate financial statements are presented for the three major fund categories: governmental, proprietary and fiduciary. An emphasis of the fund financial statements is placed on major governmental and enterprise funds. A fund is considered major if it is the primary operating fund of the City or meets the following criteria: a.

Total assets and deferred outflows, liabilities, and deferred inflows, revenues or expenditures/expenses of that individual governmental or enterprise fund are at least 10 percent of the corresponding total for all funds of that category or type, and

Total assets and deferred outflows, liabilities and deferred inflows, revenues or expenditures/expenses of the individual governmental fund or enterprise fund are at least 5 percent of the corresponding total for all governmental and enterprise funds combined.

A fund not meeting the criteria of (a) and (b), however management has elected to report the fund as a major fund due to its significance to users of the financial statements.

All remaining governmental and enterprise funds not meeting the above criteria are aggregated and reported as nonmajor funds. The funds of the financial reporting entity are described below: Governmental Funds The City reports four major governmental funds: General Fund Fire Public Safety Limited Tax Fund Police Public Safety Limited Tax Fund 2000 Capital Improvement Tax Fund General Fund The General Fund is the primary operating fund of the City. It is used to account for all activities except those legally or administratively required to be accounted for in other funds. The General Fund is reported as a major governmental fund. The General Fund main sources of revenue include sales tax, franchise and public services taxes, and charge for services related to governmental activities. Due to GASB 54 for financial reporting purposes, the General Fund also includes the activity of the Edmond Electric Economic Development sub -fund and the Park Special Events sub-fund. In fiscal year 2016, the Real Property Fund was moved to an account of the General Fund from a special revenue fund because it no longer has a dedicated income stream. Prior to 2014, Citylink (Edmondâ&#x20AC;&#x2122;s public transportation service) was included in the General Fund. Beginning in 2014, Citylink has been moved and is included as a Business Type Activity. Also in 2013â&#x20AC;&#x2122;s report, the Hotel/Motel tax was moved from the General Fund to Special Revenue Fund-CVB as a dedicated income revenue stream. We have continued to report this revenue there. Special Revenue Funds Special Revenue Funds are used to account for and report the proceeds of specific revenue sources that are legally or administratively restricted to expenditures for certain purposes. The reporting entity includes the following special revenue funds:

CITY OF EDMOND, OKLAHOMA ANNUAL FINANCIAL REPORT June 30, 2018

Major Funds: Fire Public Safety Limited Tax Fund – used to account for restricted taxes and other dedicated revenues used to finance the operations of the City’s fire department Police Public Safety Limited Tax Fund – used to account for restricted taxes and other dedicated revenues used to finance the operations of the City’s police department and other capital projects Nonmajor Funds: CDBG Entitlement Fund Asset Forfeiture Fund Senior Center Fund Convention & Visitors Bureau Fund Hospital Sale Trust Fund Ambulatory Service Fund Capital Project Funds Capital Project Funds are used to account for resources restricted for the acquisition or construction of specific capital projects or items. The reporting entity includes the following capital project funds: Major Fund: 2000 Capital Improvement Tax Fund – used to account for the proceeds of a voter-restricted limited purpose sales tax to be used for capital improvements Nonmajor Funds: Cemetery Care Fund Park Sales Tax Fund Art in Public Places Fund Capital Improvement Fund Roadway Improvement Fund 1996 Capital Improvement Tax Fund 2012 Public Safety Center Tax Fund 2017 Capital Improvement Fund Proprietary Funds Proprietary funds include both enterprise funds and internal service funds. Enterprise funds are used to account for business-like activities provided to the general public. Internal service funds are used to account for business-like activities provided and charged to other funds or entities within the reporting entity. Proprietary fund operating revenues, such as charges for services, result from exchange transactions associated with the principal activity of the fund. Nonoperating revenues of the proprietary funds include such items as investment earnings, interest expense and subsidies. The reporting entity includes the following enterprise funds and internal service funds: Enterprise Funds The City reports three major enterprise funds: Electric Fund – used to account for the operation and maintenance of the City electric utility services Water Fund – used to account for the operation and maintenance of the City water utility services Wastewater Fund - used to account for the operation and maintenance of the City wastewater utility services

CITY OF EDMOND, OKLAHOMA ANNUAL FINANCIAL REPORT June 30, 2018

Nonmajor enterprise funds include: Sanitation Fund Arcadia Lake Fund Drainage Fund Kickingbird Golf Course Fund YourGovShop Fund Transportation Fund (CityLink) Internal Service Funds Internal service funds include: Employee Group Insurance Fund Vehicle Maintenance Fund Liability/Tort Claim Fund Fleet Management Fund Field Services Fund Administrative Support Services Fund Fiduciary Funds The City’s fiduciary funds are used to report net position and changes therein of assets held by the City in a trustee or fiduciary capacity. This net position is not available for operations of the City. The City reports two types of fiduciary funds: Pension Trust Fund and Agency Funds. Agency funds are custodial in nature (i.e., assets equal liabilities) and do not involve the measurement of changes in net position. Pension Trust Fund – used to account for the assets and changes therein of the Edmond Employee Retirement System Agency Funds – used to account for assets held on behalf of others including the Sidewalk and Driveway Escrow and the C.L.E.E.T. Penalty Assessment Fund 1.C. MEASUREMENT FOCUS AND BASIS OF ACCOUNTING Measurement focus is a term used to describe how transactions are recorded within the financial statements. Basis of accounting refers to when transactions are recorded regardless of the measurement focus applied. Measurement Focus On the government-wide Statement of Net Position and the Statement of Activities both governmental and businesslike activities are presented using the economic resources measurement focus as defined in item b. below. In the fund financial statements, the “current financial resources” measurement focus or the “economic resources” measurement focus is used as appropriate: a.

All governmental funds utilize a “current financial resources” measurement focus. Only current financial assets, liabilities, deferred outflows and inflows are generally included on their balance sheets. Their operating statements present sources and uses of available spendable financial resources during a given period. These funds use fund balance as their measure of available spendable financial resources at the end of the period.

The proprietary fund utilizes an “economic resources” measurement focus. The accounting objectives of this measurement focus are the determination of operating income, changes in net position (or cost recovery), financial position, and cash flows. All assets, liabilities (whether current or noncurrent), deferred outflows and inflows associated with their activities are reported. Proprietary fund equity is classified as net position. 50

CITY OF EDMOND, OKLAHOMA ANNUAL FINANCIAL REPORT June 30, 2018

Basis of Accounting Government-wide, Proprietary and Fiduciary Fund Financial Statements In the government-wide Statement of Net Position and Statement of Activities, and the proprietary fund financial statements the accrual basis of accounting is applied. Under the accrual basis of accounting, revenues are recognized when earned and expenses are recorded when the liability is incurred or economic asset used. Revenues, expenses, gains, losses, assets and liabilities resulting from exchange and exchange-like transactions are recognized when the exchange takes place. Governmental Fund Financial Statements In the governmental fund financial statements, the modified accrual basis of accounting is applied. Under this modified accrual basis of accounting, revenues are recognized when “measurable and available”. Measurable means knowing or being able to reasonably estimate the amount. Available means collectible within the current period or soon enough thereafter to pay current liabilities. The City has defined “available” as collected within 60 days after year end. Sales and use taxes, franchise taxes, hotel/motel taxes, court fines and interest are considered susceptible to accrual. Expenditures (including capital outlay) are recorded when the related fund liability is incurred, except for general long-term debt principal and interest, claims and judgments, and accrued compensated absences, which are recorded as expenditures to the extent they have matured. Proceeds of general long-term debt and capital leases are reported as other financial sources. 1.D. ASSETS, LIABILITIES, DEFERRED OUTFLOWS/INFLOWS OF RESOURCES, AND NET POSITION/FUND BALANCE. Cash and Cash Equivalents Cash and cash equivalents include all demand accounts, savings accounts, money market investment in trust accounts, certificates of deposit and short-term investments with an original maturity of three months or less. Investments in open-ended mutual fund shares are also considered cash equivalents and are reported at the funds’ current share prices. Investments Investments are reported at fair value using selected bases. Securities traded on a national or international exchange are valued at the last reported sales price at current exchange rates. Investments that do not have an established market are reported at estimated fair value as estimated by a broker/dealer. Investments of the pension trust fund are also carried at fair value. Securities of the pension trust fund traded on a national or international exchange are valued at the last reported sales price at current exchange rates. All non-negotiable long-term certificates of deposit are carried at cost. Additional cash and investment disclosures are presented in Note 2.B. and Note 3.A. Receivables In the government-wide statements, receivables consist of all revenues earned at period-end and not yet received. Allowances for uncollectible accounts receivable are based upon historical trends and the periodic aging of accounts receivable. Major receivable balances for the governmental activities include sales and use taxes, franchise taxes, grants, police fines, ambulance fees. Business-type activities report utilities as its major receivables. In the fund financial statements, material receivables in governmental funds include revenue accruals such as sales tax, franchise tax, tax increment revenue, and grants and other similar intergovernmental revenues since they are usually both measureable and available. Non-exchange transactions collectible but not available are deferred in the fund financial statements in accordance with modified accrual, but not deferred in the government-wide financial statements in accordance with the accrual basis. Interest and investment earnings are recorded when earned on if paid within 60 days since they would be considered both measurable and available. Proprietary fund material receivables consist of all revenues earned at period-end and not yet received. Utility accounts receivable (such as electric, water, wastewater, sanitation and drainage revenues) comprise the majority of proprietary fund receivables. Allowances for uncollectible accounts receivable are based upon historical trends and the periodic aging of accounts receivable.

CITY OF EDMOND, OKLAHOMA ANNUAL FINANCIAL REPORT June 30, 2018

Inventories Inventories are valued at average cost. The cost of governmental funds inventories are recorded as expenditures when consumed rather than when purchased because they are immaterial. Restricted Assets Restricted assets include current assets of enterprise funds and business-type activities that are legally restricted as to their use. The primary restricted assets are related to revenue bond and promissory note trustee accounts restricted for debt service and deposits held for refund. Restricted assets of the component unit consist of program income from revolving grants restricted as to use. Capital Assets and Depreciation The accounting treatment of property, plant and equipment (capital assets) depends on whether the assets are used in governmental fund type or proprietary fund operations and whether they are reported in the government-wide or fund financial statements. Government-Wide Statements In the government-wide financial statements, property, plant and equipment are accounted for as capital assets. The Cityâ&#x20AC;&#x2122;s capitalization threshold is $7,500. All capital assets are valued at historical cost, or estimated historical cost if actual is unavailable, except for donated capital assets, donated works of art and similar items which are recorded at their acquisition value at the date of donation. General infrastructure assets (such as roads, bridges, and traffic systems) acquired prior to July 1, 2002, are reported at estimated historical cost using deflated replacement costs. The cost of normal maintenance and repairs to these assets that do not add materially to the value of the asset or materially extend the assetsâ&#x20AC;&#x2122; useful lives are not capitalized Depreciation of all exhaustible capital assets is recorded as an operating expense in proprietary fund financial statements and an allocated expense in the Statement of Activities, with accumulated depreciation reflected in the Statement of Net Position. Depreciation is provided over the assetsâ&#x20AC;&#x2122; estimated useful lives using the straight-line method of depreciation. The range of estimated useful lives by type of asset is as follows: Buildings Other Improvements Infrastructure Equipment and vehicles Water rights

15 - 50 years 5 - 50 years 50-100 years 2 - 40 years 25-50 years

In the governmental fund financial statements, capital assets acquired are accounted for as capital outlay expenditures. Long-Term Debt Accounting treatment of long-term debt varies depending upon the source of repayment and the measurement focus applied and whether the debt is reported in the government-wide or fund financial statements. All long-term debt to be repaid from governmental activities, business-type activities, proprietary fund and component unit resources are reported as liabilities as incurred. The long-term debt consists primarily of accrued compensated absences, general obligation bonds payable, and revenue bonds payable. This long-term debt is reported net of unamortized premiums and discounts. Amounts deferred from refundings and shown as deferred inflows or outflows. Long-term debt of governmental funds is not reported as liabilities in the fund financial statements. The debt proceeds are reported as other financing sources and payment of principal and interest reported as expenditures.

CITY OF EDMOND, OKLAHOMA ANNUAL FINANCIAL REPORT June 30, 2018

Compensated Absences Under terms of union contracts and City personnel policies, City employees are granted vacation and sick leave in varying amounts. In the event of termination, a civilian employee is paid for accumulated vacation up to 300 hours earned. Upon retirement, 33-1/3% of accumulated sick leave up to a maximum of 300 hours is converted to vacation time for non-union employees, subject to certain limitations. For firemen, sick leave hours are converted three to one to vacation hours not to exceed 400 hours at retirement plus 480 maximum vacation (suppression) and 288 maximum vacation (non-suppression). For police officers, sick leave hours are converted two to one with a maximum of 400 hours plus maximum of 320 vacation hours at retirement. The estimated liabilities for vested benefits also include salary-related payments such as employment taxes. Compensated absences are reported as accrued in the government-wide, proprietary, fiduciary and component unit financial statements. Governmental funds report only the matured compensated absences payable to currently terminating employees; however, the compensated absences obligation is reported as a fund balance reserve in compliance with the State Constitution. Deferred Outflow/Inflows of Resources In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. At the government fund level, the City does not recognizes any deferred outflows. At the enterprise fund level and government-wide level, the City recognizes deferred outflows related a refunding, deferred amounts related to pensions and deferred amounts related to OPEB. In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period (s) and so will not be recognized as an inflow of resources (revenue) until that time. The government has at the fund level only one type of item, which arises only under a modified accrual basis of accounting that qualifies for reporting in this category. Accordingly, the item, unavailable revenue, is reported only in the governmental funds balance sheet. The governmental funds report unavailable revenues from two sources: property taxes and special assessments. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available. At the government wide level and proprietary fund level, deferred inflows are for reporting the fair value of a hedging derivative, amounts related to pensions, and amounts related to OPEB. Equity Classifications Government-Wide and Proprietary Fund Financial Statements: Equity is classified as net position and displayed in three components: a. b. c.

Net investment in capital assets - Consists of capital assets including restricted capital assets, net of accumulated depreciation and reduced by the outstanding balances of any bonds, mortgages, notes or other borrowings that are attributable to the acquisition, construction, or improvement of those assets. Restricted net position - Consists of net position with constraints placed on the use either by 1) external groups such as creditors, grantors, contributors, or laws or regulations of other governments, or 2) law through constitutional provisions or enabling legislation. Unrestricted net position - All other net position that does not meet the definition of “restricted” or “net investment in capital assets”.

It is the City’s policy to first use restricted net position prior to the use of unrestricted net position when an expense is incurred for purposes for which both restricted and unrestricted net position are available.

CITY OF EDMOND, OKLAHOMA ANNUAL FINANCIAL REPORT June 30, 2018

Governmental Fund Financial Statements: Governmental fund equity is classified as fund balance. Fund balance is further classified as nonspendable, restricted, committed, assigned and unassigned. These classifications are defined as: a)

Nonspendable-includes amounts that cannot be spent because they are either (a) not in spendable form or (b) legally or contractually required to be maintained intact. b) Restricted-consists of fund balance with constraints placed on the use of resources either by (1) external groups such as creditors, grantors, contributors, or laws or regulations of other governments, or (2) laws through constitutional provisions or enabling legislation. c) Committed-included amounts that can only be used for specific purposed pursuant to constraints imposed by formal action of the city’s highest level of decision-making authority. The City’s highest level of decision-making authority is made by ordinance. City Council adopts an ordinance that establishes this constraint. d) Assigned-includes amounts that are constrained by the City’s intent to be used for specific purposed but are neither restricted nor committed. Assignments of fund balance may be made by city council action or management decision when the city council has delegated that authority. Assignments for transfers and interest income for governmental funds are made through budgetary process. e) Unassigned-represents fund balance that not been assigned to other funds and has not been restricted, committed, or assigned to specific purposes within the general fund. The general fund is the only fund that reports a positive unassigned fund balance.

It is the City’s policy that expenditures for which more than one category of fund balance could be used, that the order of use is: restricted, committed, assigned and unassigned. The City Council adopted the budget which designates the amount to the specific categories. In an effort to ensure the continuance of sound financial management of public resources, the City of Edmond’s Unassigned Fund Balance within the General Fund will be maintained to provide the City with sufficient working capital and a comfortable margin of safety to address emergencies, sudden loss of revenue or operating needs, and unexpected downturns. This policy established the amounts the City will strive to maintain in its General Fund unassigned balance, the conditions under which fund balance may be spent, and the method by which fund balance will be restored. These amounts are expressed as goals, recognizing that fund balance levels can fluctuate from year to year in the normal course of operations for any local government. The City will strive to maintain an Unassigned Fund Balance in the General Fund of (10%). This is determined by adding all new budgeted revenues, plus the Edmond Public Works Authority’s transfers-in, divided by the Unassigned Fund Balance. It is management’s express intent to identify a “not-to-exceed” amount of $1,000,000 as part of the 10% minimum fund balance for unexpected, large-scale events where damage in excess of $250,000 is incurred and immediate, remedial action must be taken to protect the health and safety of residents (e.g. floods, fires, storm damage). Of the $1,000,000 part of the General Fund’s Unassigned Fund Balance, it is management’s intent to not use any portion of this balance unless such emergencies occur. It is the goal of the City to limit use of any Unassigned Fund balances less than 10% to address non-recurring needs, otherwise approved by the City Council. Unassigned Fund balances of less than the 10% minimum as described above shall not normally be applied to recurring annual operating expenditures. Unassigned balances within the General Fund may, however, be used to allow time for the city to restructure its operations in a deliberate manner, but such use will only take place in the context of long-term financial planning. 1.E. INTERNAL AND INTERFUND BALANCES AND ACTIVITIES In the process of aggregating the financial information for the government-wide financial, some amounts reported as interfund activity and balances in the fund financial statements have been eliminated or reclassified.

CITY OF EDMOND, OKLAHOMA ANNUAL FINANCIAL REPORT June 30, 2018

Government-Wide Financial Statements: Interfund activity and balances, if any, are eliminated or reclassified in the government-wide financial statement as follows: a. Internal balances - amounts reported in the fund financial statements as interfund receivables and payables are eliminated in the governmental and business-type activities columns of the statement of net position, except for the net residual amounts due between governmental and business-type activities, which are reported as Internal Balances. b.

Internal activities - amounts reported as interfund transfers in the fund financial statements are eliminated in the government-wide statement of activities except for the net amount of transfers between governmental and business-type activities, which are reported as Transfers - Internal Activities. The effects of interfund services between funds are not eliminated in the statement of activities.

Primary government and component unit activity and balances - resource flows between the primary government (the City and EPWA) and the discretely-presented component units (the Historical Preservation Trust and EEDA) are reported as if they were external transactions.

Fund Financial Statements: Interfund activity, if any, within and among the governmental, proprietary fund and fiduciary categories is reported as follows in the fund financial statements: 1.

Interfund loans - amounts provided with a requirement for repayment are reported as interfund receivables and payables.

Interfund services - sales or purchases of goods and services between funds are reported as revenues and expenditures/expenses.

Interfund reimbursements - repayments from funds responsible for certain expenditures/expenses to the funds that initially paid for them are not reported as reimbursements but as adjustments to expenditures/expenses in the respective funds.

Interfund transfers - flow of assets from one fund to another where repayment is not expected are reported as transfers in and out.

1.F. REVENUES, EXPENDITURES AND EXPENSES Sales Tax The City levies a three and three-fourth cent sales tax on taxable sales within the City. The sales tax is collected by the Oklahoma Tax Commission and remitted to the City in the month following receipt by the Tax Commission. The sales tax is recorded as follows: 2 cents recorded as revenue within the General Fund then transfers .75 of one cent to the Water Enterprise Fund as required by the bond indenture for debt service. Any unused portion is transferred back to the General Fund. 1/8 cent recorded as revenue within the Park Sales Tax Fund to account for operations and facility improvement costs of the Cityâ&#x20AC;&#x2122;s park and recreation system. 3/4 cent recorded as revenue within the 2000 Capital Improvement Tax Fund to account for capital improvements as recommended to the City Council by the Capital Financing Task Force. 1/4 cent recorded as revenue within the Fire Public Safety Limited Tax Fund to account for improvements to the fire department per voter approval.

CITY OF EDMOND, OKLAHOMA ANNUAL FINANCIAL REPORT June 30, 2018

1/8 cent recorded as revenue within the Police Public Safety Limited Tax Fund to account for improvements to the police department per voter approval. 1/2 cent recorded as revenue within the 2017 Capital Improvement Fund to account for capital projects approved by Capital Improvement Project Advisory Board. This became effective April 1, 2017.

Sales tax resulting from sales occurring prior to year-end and received by the City after year end have been accrued and is included under the caption Due from Other Governments because they represent taxes on sales occurring during the reporting period. Police and Fire Public Safety Funds Revenue An ordinance passed and approved by the citizens of Edmond requires that 30% of General Fund revenues (defined as taxes, licenses and permits, fines and forfeitures, charges for services, interest and miscellaneous revenues) be used for funding fire department operations and that 36.8% of these same General Fund revenues be used for funding police department operations. Effective July 1, 2001 all fire and police expenditures were accounted for in the limited purpose sales tax special revenue funds. The special revenue funds also receive sales tax (approved in the same ordinance referenced above) of one-fourth percent for the fire department and one-eighth percent for the police department. Those sales taxes can only be expended for additional personnel and equipment for additional personnel, additional equipment for firefighting and law enforcement purposes, and also for competitive compensation and benefits for existing and retired firefighters and officers. The ordinance further states that expenditures will not be charged against the sales tax revenues until the General Fund revenues have first been used or encumbered. Hospital Sales Trust Fund Principal and Income In 1981, the City sold the Edmond Memorial Hospital for approximately $7,200,000. The majority of the proceeds are invested in a trust account. According to trust agreement terms, the earnings and interest of the trust funds can be used by the City for capital improvements. The principal of the trust must also be used for capital improvements, but its use must first be approved by a vote of the citizens of the City. Edmond voters approved a half-cent sales tax on October 11, 2011 and allowed the City to loan itself money out of the $7.2 million Hospital Trust Fund, but is contingent upon paying the borrowed funds back with interest. Pension Contributions For purposes of measuring the net pension liability, deferred outflows or resources and deferred inflows of resources related to pensions, and pension expense, amounts and disclosures have been prepared using the accrual basis of accounting. Employee and employer contributions are recognized as System revenues in the period in which they are due to the plan. Benefits and refunds are recognized when due and payable pursuant to plan provisions. Investments are reported at fair value. Property Tax Under State law municipalities are limited in their ability to levy a property tax. Such tax may only be levied to repay principal and interest on general obligation bonded debt approved by voters and any court-assessed judgments. At the present time the City levies a property tax for court-assessed judgments only. Pledge of Future Revenues Sales Tax Pledge - The City has pledged three-fourth cents (or 20%) of future sales tax revenues to repay $291,750,000 of Series 2010, 2012, 2013, 2014, 2014B, 2015, 2016, and 2017 Sales Tax and Utility System Bonds. Proceeds from the bonds provided financing for capital assets. The bonds are payable from pledged sales tax revenues and further secured by net electric, water, wastewater, and sanitation revenues. The bonds are payable through 2021, 2023, 2023, 2024, 2026, 2024, 2047, 2048, respectively. The total principal and interest payable for the remainder of the life of these bonds is $437,417,172. Pledged sales taxes received in the current year were $13,647,100 for the bonds and the 56

CITY OF EDMOND, OKLAHOMA ANNUAL FINANCIAL REPORT June 30, 2018

net utility revenues were $38,231,251. Debt service payments for the bonds of $17,829,134 for the current fiscal year were 131% of the pledged sales taxes and 35% of both pledged sales taxes and utility revenues. Utility Net Revenues Pledge – The City has also pledged future net electric, water, wastewater, and sanitation revenues to repay $271,826,484 of 2014, 2015, 2016, and 2017 Series Utility System Revenue Bonds and $3,726,484 of 2005 OWRB Notes Payable and $16,085,000 on the General Sales Revenue Note with Bank of America . Proceeds from the bonds and notes provided financing for utility system capital assets. The bonds are payable through 2048 while the notes are payable through 2024 and 2026. The total principal and interest payable for the remainder of the life of these bonds and notes is $402,934,734. The bonds are payable from the above-mentioned utility net revenues and are additionally secured with .75 of one cent (or 20%) of future sales tax revenues. If the net utility revenues are sufficient to service the debt, the pledged sales taxes are transferred back to the General Fund. The total pledged sales taxes for the current fiscal year of $13,647,100 were returned to the General Fund. The debt service payments on the bonds and notes this year were $14,925,197 which was 31.9% of pledged net utility revenues of $46,754,873 and 24.7% of both pledged utility revenues and pledged sales taxes. Expenditures and Expenses In the government-wide statement of activities, expenses, including depreciation of capital assets, are reported by function or activity. In the governmental fund financial statements, expenditures are reported by class as current (further reported by function), capital outlay and debt service. In proprietary fund financial statements, expenses are reported by object or activity. Fiduciary funds report additions and deductions to net position. 1.G. USE OF ESTIMATES The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts and disclosures; accordingly, actual results could differ from those estimates. 1.H. NEW ACCOUNTING PRONOUNCEMENTS The City implemented Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions – GASB No. 75 was issued in June 2015, and addresses accounting and financial reporting for OPEB that is provided to the employees of state and local governmental employers. This Statement establishes standards for recognizing and measuring liabilities, deferred outflows of resources, deferred inflows of resources, and expense/expenditures. For a defined benefit OPEB plan, this Statement identifies the methods and assumptions that are required to be used to project benefit payments, discount projected benefit payments to their actuarial present value, and attribute that present value to periods of employee service. Note disclosure and required supplementary information requirements about defined benefit OPEB also are addressed. This Statement resulted in a restatement of net positon by decreasing beginning net position by $2,323,384, in total. The City implemented GASB Statement No. 81, Irrevocable Split-Interest Agreements – GASB 81 was issued in March 2016, to improve accounting and financial reporting for irrevocable split-interest agreements by providing recognition and measurement guidance for situations in which a government is a beneficiary of the agreement. Implementation of GASB 81 did not significantly affect the City’s financial statements. The City implemented GASB Statement 85, Omnibus 2017, This Statement addresses a variety of topics including issues related to blending component units, goodwill, fair value measurement and application, and postemployment benefits. Implementation of GASB 85 did not significantly affect the City’s financial statements. The City implemented GASB Statement 86, Certain Debt Extinguishment Issues - The primary objective of this Statement is to improve the consistency in accounting and financial reporting for in- substance defeasance of debt by providing guidance for transactions in which cash and other monetary assets acquired with only existing resources – resources other than the proceeds of refunding debt – are placed in an irrevocable trust for the sole purpose of extinguishing debt. This Statement also improves accounting and financial reporting for prepaid insurance on debt that is extinguished and notes to financial statements for debt that is defeased in substance. Implementation of GASB 86 did not significantly affect the City’s financial statements.

CITY OF EDMOND, OKLAHOMA ANNUAL FINANCIAL REPORT June 30, 2018

The City early implemented GASB 89, Accounting for Interest Cost Incurred Before the End of a Construction Period – This statement requires that interest cost incurred before the end of a construction period be recognized as an expense in the period in which the cost is incurred for financial statements prepared using the economic resources measurement focus. As a result, interest cost incurred before the end of a construction period will no longer be included in the historical cost of a capital type activity or proprietary type funds. Implementation of GASB 89 did not significantly affect the City’s financial statements. NOTE 2. STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY By its nature as a local government unit, the City and its component units are subject to various federal, state and local laws and contractual regulations. An analysis of the City’s compliance with significant laws and regulations and demonstrations of its stewardship over City resources follows. 2.A. DEFICIT FUND BALANCES OR NET POSITION Title 11, Section 17-211 of the Oklahoma Statutes prohibits the creation of a deficit fund balance in any individual fund of the City (excluding public trusts). At June 30, 2018, due to timing issues, the City reported a deficit in the CDBG Entitlement Fund and the 2012 Public Safety Center Tax Fund. 2.B. DEPOSITS AND INVESTMENTS REQUIREMENTS The Treasurer is authorized to invest funds in such securities as provided by Oklahoma State Statutes. The City’s General/Operating and Public Works Authority Funds Investment Policy may be more restrictive than that allowed by state statute. The securities authorized by the approval of this policy shall be: a.

Direct obligations of the United States Government, its agencies or instrumentalities to the payment of which the full faith and credit of the Government of the United States is pledged or obligations to the payment of which the full faith and credit of the State of Oklahoma is pledged; or

Collateralized or insured certificates of deposits of savings and loan associations, banks, savings banks and credit unions located in this state, when the certificates of deposit are secured by acceptable collateral as provided in Oklahoma State Title 62, Section 517.5 or fully insured certificates of deposit at banks, savings banks, savings and loan associations and credit unions located out of state; or

Savings accounts or saving certificates of savings and loan associations, banks, and credit unions, to the extent that the accounts or certificates are fully insured by the Federal Deposit Insurance Corporation; or

Investments as authorized by Oklahoma State Title 62, Section 348.3 which are fully collateralized in investments specified in paragraphs 1 through 3 of this section, and where the collateral has been deposited with a trustee or custodian bank in an irrevocable trust or escrow account established of such purposes; or

County, municipal or school district direct debt obligations for which an ad valorem tax may be levied or bond and revenue anticipation notes, money judgments against such county, municipality or school district ordered by a court of record or bonds or bond and revenue anticipations notes issued by a public trust for which such county, municipality or school district is a beneficiary thereof. All collateral pledged to secure public funds shall be valued at no more than market value. The income received from the investment may be place in the general fund of the governmental subdivision to be used for general governmental operations, the sinking fund, the building fund, or the fund from which the investment was made.

Obligations of the United States government, its agencies and instrumentalities;

Collateralized or insured certificates of deposits and other evidences of deposit at banks, saving banks, savings and loan associations and credit unions located within the state; or full insured certificates of deposit and banks, savings banks, savings and loan associations and credit unions located out of state;

Negotiable certificates of deposit issued by a nationally or state-charted bank, savings bank, a savings and loan association or a state-licensed branch of a foreign bank. Purchases of negotiable certificates of deposits shall not exceed ten percent (10%) of the surplus funds of the city or county which may be invested 58

CITY OF EDMOND, OKLAHOMA ANNUAL FINANCIAL REPORT June 30, 2018

pursuant to this section. Not more than one-half (1/2) of the ten percent (10%) limit shall be invested in any one financial institution specified in this paragraph; i.

Prime banker’s acceptances which are eligible for purchase by the Federal Reserve System and which do not exceed two hundred seventy (270) days’ maturity. Purchases of prime banker’s acceptances shall not exceed ten percent (10%) of the surplus funds of the city or county which may be invested pursuant to this section. Not more than one-half (1/2) of the ten percent (10%) limit shall be invested in any one commercial bank pursuant to this paragraph;

Prime commercial paper which shall not have a maturity that exceeds one hundred eighty (180) days nor represent more than ten percent (10%) of the outstanding paper of an issuing corporation. Purchases of prime commercial paper shall not exceed seven and one-half percent (7 ½ %) of the surplus funds of the city or county which many be invested pursuant to this section; and

Repurchase agreements that have underlying collateral consisting of those items specified in paragraphs a through e of this subsection.

Money market funds regulated by the Securities and Exchange Commission and which investments consist of those items and those restrictions in paragraphs 1 through 6 of this subsection.

Public trusts created under O.S. Title 60 and pension trust funds are not subject to the above noted investment limitations and are primarily governed by any restrictions in their trust or bond indentures. 2.C. DEBT RESTRICTIONS AND COVENANTS Notes Payable The loan agreement with the Oklahoma Water Resources Board relating to the interim construction note payable of the Edmond Public Works Authority contains a number of financial restrictions or covenants. These include covenants requiring a flow of funds through special accounts and a note payable debt service coverage requirement. The note agreement requires net revenues of the system plus pledged and transferred sales tax to be at least 125% of maximum annual debt service. The Note indenture relating to the 2013 General Sales Tax Revenue note payable of the Edmond Public Works contains a number financial restrictions or covenants. Revenue Bond Debt The bond indentures relating to the revenue and sales tax bond issues of the Edmond Public Works Authority and the City contain a number of financial restrictions or covenants. These include covenants requiring a flow of funds through special accounts, required reserve account balances and revenue bond debt service coverage requirement. The 2010, 2012, 2013, 2014, 2014B, 2015, 2016, and 2017 series sales tax and utility revenue bond indentures require (1) a reserve account balance $23,616,479 and (2) net revenues plus pledged and transferred sales tax to be at least 100% of the maximum annual debt service requirements. The City complied with these covenants for the fiscal year ended June 30, 2018. NOTE 3. DETAIL NOTES - TRANSACTION CLASSES/ACCOUNTS The following notes present detail information to support the amounts reported in the basic financial statements for its various assets, liabilities, equity, revenues and expenditures/expenses. 3.A. DEPOSIT AND INVESTMENT RISKS Primary Government: The City of Edmond, including its blended component unit held the following deposits and investments at June 30, 2018.

CITY OF EDMOND, OKLAHOMA ANNUAL FINANCIAL REPORT June 30, 2018

M a turitie s in Ye a rs

F a ir Va lue F a ir Va lue

Type De m a nd a c c o unts

Tim e de po s its

R a ting

C a te go ry (3)

24,595,218

n/a

37,726,054

n/a

De m a nd $ 24,595,218

Le s s Tha n One $

1- 5 $

34,000,000

6 - 10 -

M o ne y m a rke t funds

80,863,936

n/a

80,863,936

141,409,824

(1)

Le ve l I

63,868,580

77,541,244

U.S . Go ve rnm e nt s po ns o re d e nte rpris e s

170,880,091

(2)

Le ve l II

70,661,003

100,219,088

17,472,167

Le ve l I

S ub-to ta l

472,947,290

$ 24,595,218

249,393,519

3,726,054

U.S . Tre a s ury Obliga tio ns

M utua l F unds -fixe d inc o m e

181,486,386

17,472,167 $ 17,472,167

M utua l F unds : Alte rna tive Equity F unds S ub-to ta l M utua l F unds

n/a

Le ve l I

n/a

Le ve l I

n/a

Le ve l I

54,881,431

C o m m o n a nd pre fe rre d s to c k To ta l Inve s tm e nts

9,028,616 45,852,815

922,934 $

528,751,655

R e c o nc ilia tio n to S ta te m e nt o f Ne t P o s itio n: C a s h a nd c a s h e quiva le nts

Inve s tm e nts

27,413,731 192,266,060

C urre nt re s tric te d c a s h a nd c a s h e quiva le nts

64,007,682

C urre nt re s tric te d inve s tm e nts

75,567,875

No nc urre nt re s tric te d c a s h a nd c a s h e quiva le nts

17,836,631

No nc urre nt re s tric te d inve s tm e nts

77,445,984

P e ns io n re tire m e nt fund a s s e ts

73,728,552

Age nc y fund c a s h a nd inve s tm e nts

485,140 $

528,751,655

** Unra te d

(1) U.S. obligations include Treasury bills, Treasury notes, and Treasury bonds. U.S. obligations are backed by the full power of the United States government and are guaranteed by the full faith and credit of the United States government. (2) U.S. government sponsored enterprise (GSE ) securities are debt issued by a financial intermediary established by the federal government to fund loans for a public purpose. GSE’s lack the explicit backing of the U.S. government, but are federally chartered entities. GSE securities are listed below with the corresponding credit ratings: GSE Name  Federal National Mortgage Association (FNMA or “Fannie Mae”)  Federal Home Loan Mortgage Corporation (FHLMC or “Freddie Mac”)  Federal Home Loan Bank (FHLB)  Federal Farm Credit Banks (FFCB)  Federal Agricultural Mortgage Corporation (FAMC or “Farmer Mac”)

S & P Rating AA+

Moody Rating Aaa

AA+

Aaa

AA+ AAA AAA

Aaa Aaa Aaa

(3) 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.

CITY OF EDMOND, OKLAHOMA ANNUAL FINANCIAL REPORT June 30, 2018

Custodial Credit Risk – Exposure to custodial credit risk related to deposits exists when the City holds deposits that are uninsured and uncollateralized; collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the City’s name; or collateralized without a written or approved collateral agreement. Exposure to custodial credit risk related to investments exists when the City holds investments that are uninsured and unregistered, with securities held by the counterparty or by its trust department or agent but not in the City’s name. The City’s policy as it relates to custodial credit risk is to secure its uninsured deposits with collateral, valued at no more than market value, at least at a level of 102% of the uninsured deposits and accrued interest thereon. The investment policy also limits acceptable collateral to U.S. Treasury securities and direct debt obligations of municipalities, counties, and school districts in the state of Oklahoma. As required by Federal 12 U.S.C. Section 1823(e), all financial institutions pledging collateral to the City must have a written collateral agreement approved by the board of directors or loan committee. At June 30, 2018, the City was not exposed to custodial credit risk as defined above. Investment Credit Risk – The City’s investment policy limits investments to those with a maturity no more than five years from the date of purchase. These investment limitations are described in Note 2B. Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. The City has no formal policy limiting investments based on credit rating, but discloses any such credit risk associated with their investments by reporting the credit quality ratings of investments in debt securities as determined by nationally recognized statistical rating organizations—rating agencies—as of the year end. Unless there is information to the contrary, obligations of the U.S. government or obligations explicitly guaranteed by the U.S. government are not considered to have credit risk and do not require disclosure of credit quality. The credit ratings of other City investments are listed in the schedule above. The fair value of the City’s forward sales agreements are fully exposed to credit risk. The forward sales agreements require the counterparty to notify the trustee, EPWA, and the bond insurer if any of the long-term unsecured outstanding debt of the guarantor falls below A- by S&P and below A3 by Moody’s or is unrated by either rating agency. Upon such notice, the trustee or EPWA may (1) direct the counterparty to either assign the agreements to an acceptable transferee, (2) provide a guaranty issued by an acceptable guarantor, or (3) terminate the agreements without penalty. Investment Interest Rate Risk – Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an investment. The City’s investment policy limits investments to those with a maturity no more than five years from the date of purchase, except for reserve and pension trust funds, as a means of managing exposure to fair value losses arising from increasing interest rates. The City discloses its exposure to interest rate risk by disclosing the maturity dates of its various investments. The derivative instruments mature between 5 and 8 years. Concentration of Investment Credit Risk - Exposure to concentration of credit risk is considered to exist when investments in any one issuer represent a significant percent of total investments of the City (any over 5% are disclosed). Investments issued or explicitly guaranteed by the U.S. government and investments in mutual funds, external investment pools, and other pooled investments are excluded from this consideration. At June 30, 2018, the City had a total portfolio concentration of credit risk in the following investments: FFCB 10.55%, FHLB 22.98%, FHLMC 1.32%, FNMA 2.86%. Pension Plan Investments: The Plan policy provides that assets be invested to provide for total return. The plan shall be invested in a diversified portfolio, consisting primarily of common stocks, bonds, cash equivalents, and other investments, which may reflect varying rates of return. The overall rate of return objective of the portfolio is a reasonable “real” rate, consistent with the risk levels established by the Pension Board. The minimum acceptable long-term rate of return over a full market cycle (3 to 5 years) is that which equals or exceeds the actuarial assumptions. The Pension Board has also established an annual target return objective, which may be changed from time to time, but is currently 7.25 percent, net of fees. This return objective currently meets the actuarial assumption of 7.25%.

CITY OF EDMOND, OKLAHOMA ANNUAL FINANCIAL REPORT June 30, 2018

Asset allocation guidelines for the Plan are as follows: Class Fixed Income Large Cap Equities Small Cap Equities International Equities Emerging Market Equities Real Estate Commodities

Targe t Pe rce nt 22% 22% 7% 17% 10% 5% 4%

June 2018 Pe rce nt 22% 22% 7% 17% 10% 5% 4%

Master Limited Partnerships

10%

Other

Rate of return. For the year ended June 30, 2018, the annual money-weighted rate of return on pension plan investments, net of pension plan investment expense, was 5.42 percent. The money-weighted rate of return expresses investment performance, net of investment expense, adjusted for the changing amounts actually invested. Component Units: Total bank deposits of the EEDA component unit were $465,682 at June 30, 2018 and were properly insured and collateralized. In addition, deposits of the Historical Preservation Trust of $50,295 were fully collateralized. Derivatives - Investment Securities Forward Sale Contract: The City has entered into multiple forward contracts for the continuous investment of various debt service and reserve funds in “eligible securities”. “Eligible securities” are defined in the various forward contracts as those securities generally allowable as investments by municipalities under Oklahoma law. By entering into these agreements, the City seeks to ensure fixed rates of return while providing cash flow streams to match related principal and interest payments. No cash was paid or received when the contracts were initiated. The notional (or contract) amounts vary over the life of the contracts along with the balances in the funds. With regards to debt service funds, the notional amount at each delivery date is the amount the City is required to maintain on deposit in the Debt Service Fund pursuant to the bond indenture of the associated debt. The notional amount for forward contracts related to reserve funds is the reserve fund balance available for investment; not to exceed the reserve requirement of the associated debt. The change in fair value is reported as deferred inflow of resources.

CITY OF EDMOND, OKLAHOMA ANNUAL FINANCIAL REPORT June 30, 2018

Effective Date

Associated Debt

T ermination Contract Change in Fair Date Interest Rate Value

Fair Value at June 30, 2018

Credit Rating

Counterparty

Governmental activities: 2010 Sales T ax & Utility Revenue Bonds: Reserve Fund

5/13/2003

7/1/2021

4.570%

(111,656)

334,888 JPMorgan

A+

7/1/2023

4.650%

(61,621)

307,836 JPMorgan

A+

2012 Sales T ax & Utility Revenue Bonds: Reserve Fund

5/13/2003

2014 Sales T ax & Utility Revenue Bonds: Debt Service

8/24/2004

7/1/2024

4.500%

(24,625)

160,667 JPMorgan

A+

Reserve Fund

8/24/2004

7/1/2024

4.876%

(67,616)

410,831 JPMorgan

A+

Total governmental activities:

(265,518) $

1,214,222

Business-type Activities:

2014 Sales T ax & Utility Revenue Bonds: Debt Service

8/24/2004

7/1/2024

4.500%

(22,182)

144,726 JPMorgan

A+

Reserve Fund

8/24/2004

7/1/2024

4.876%

(60,906)

370,069 JPMorgan

A+

(83,088) $

514,795

(348,606) $

1,729,017

Total business-type activitie s:

Total

Fair value was determined using expected cash flows discounted to the treasury curve at June 30, 2018. Credit risk – The counterparty to the forward sale contract derivative agreements is JPMorgan serving as guarantor. At June 30, 2018, the counterparty’s credit ratings were A+. Termination risk – The City or its counterparties are subject to termination risk if the bonds for which the debt service and reserve funds relate are redeemed, refunded, or defeased. If the bonds are redeemed, refunded or defeased in whole, then immediately upon payment of the termination value then the agreement shall terminate. If the bonds are redeemed or defeased in part, then the Termination Value shall be determined based on the portion of the agreement which will terminate and immediately upon payment of the termination value, this agreement shall terminate in part and the balance of this agreement shall remain in effect, the Reserve Requirement shall be amended to reflect that portion of the agreement that has been terminated. 3.B. RECEIVABLES Accounts Receivable Accounts receivable of the business-type activities consist of customers utilities services provided, both billed and unbilled, due at year end, reported net of allowance for uncollectible amounts. The governmental activities receivables include fines, other taxes, and miscellaneous receivables as follows:

CITY OF EDMOND, OKLAHOMA ANNUAL FINANCIAL REPORT June 30, 2018

Business-T ype Activities:

Electric Fund Utilities Receivable

Water Fund

$ 17,385,703

Less: allowance for uncollectible accounts Utilities receivable, net of allowance

$ 4,325,468

(1,393,307) $ 15,992,396

Wastewater Fund

Sanitation Fund

$ 2,298,042

$ 1,206,575

(265,389)

(252,539)

$ 4,060,079

Drainage Fund $

261,030

221,555

(126,915)

$ 2,045,503

T otal $ 25,476,818

(39,475)

$ 1,079,660

(2,077,625) $ 23,399,193

Other Receivables-Business-T ype Activities

666,466

T otal Accounts Receivable-Business-T ype Activities

$ 24,065,659

Governmental Activities:

Fines Receivable Other receivables

Less: allowance for uncollectible accounts Other receivables, net of allowance

2,225,804

Other T axes Receivable $

461,293

(1,673,186) $

552,618

Miscellaneous Receivables $

T otal

514,314

$ 3,201,411

461,293

(1,673,186)

514,314

$ 1,528,225

3.C. RESTRICTED ASSETS The amounts reported as restricted assets of the business-type activities are comprised of assets held by the trustee bank on behalf of the EPWA related to their required revenue note and bond accounts, deposits held for refund and EEDA restricted accounts related to revolving loan program income. Governmental activity restricted assets are comprised of assets held by a trustee bank on behalf of the City related to required revenue bond accounts. Current Cash and cash equivalents

Noncurrent Cash and cash equivalents Investments

Investments

T otal

Primary Government Governmental Activities: Revenue bond trustee accounts T otal Governmental Activities

11,156,743

1,462,220

4,087,418

3,829,363

20,535,744

11,156,743

1,462,220

4,087,418

3,829,363

20,535,744

11,222,037

27,276,166

Business-type Activities: Revenue bond trustee accounts Deposits held for refund Deposits held for construction T otal Business-type Activities

13,749,213

2,304,916

4,825,378

41,628,902

69,280,277

71,311,705

182,220,884

52,850,939

74,105,655

13,749,213

73,616,621

214,322,428

Component Unit: The Edmond Economic Development Authority (EEDA) restricted assets at year end included the following: Current Cash and cash equivalents, program income Total

41,326

CITY OF EDMOND, OKLAHOMA ANNUAL FINANCIAL REPORT June 30, 2018

3.D. CAPITAL ASSETS Capital asset activity for the fiscal year ended June 30, 2018 was as follows: B a la nc e a t J uly 1, 2017

Additio ns

De duc tio ns

B a la nc e a t J une 30, 2018

G o v e rn m e n t a l a c t iv it ie s : No n-de pre c ia ble : La nd C o ns truc tio n-in-pro gre s s

To ta l no n-de pre c ia ble a s s e ts a t his to ric a l c o s t

17,712,882 35,433,604

53,146,486

8,825,188

(18,118,705)

17,712,882 26,140,087 43,852,969

De pre c ia ble : B uildings Im pro ve m e nts

110,566,755

3,382

110,570,137

40,715,344

7,856,714

(39,526)

48,532,532

(1,584,641)

M a c hine ry a nd e quipm e nt

54,581,492

3,168,687

Infra s truc ture

317,421,310

17,721,876

523,284,901

28,750,659

To ta l de pre c ia ble a s s e ts a t his to ric a l c o s t

56,165,538

335,143,186

(1,624,167)

550,411,393

Le s s a c c um ula te d de pre c ia tio n B uildings

(23,654,572)

(3,294,430)

(26,949,002)

Im pro ve m e nts

(23,783,343)

(2,948,944)

29,289

(26,702,998)

1,250,031

(32,488,826)

M a c hine ry a nd e quipm e nt Infra s truc ture To ta l a c c um ula te d de pre c ia tio n Ne t de pre c ia ble a s s e ts Go ve rnm e nta l a c tivitie s c a pita l a s s e ts , ne t

(30,653,123)

(3,085,734)

(170,281,398)

(9,851,719)

(248,372,436)

(19,180,827)

274,912,465

9,569,832

328,058,951

2,571,192

18,395,020

(180,133,117)

1,279,320

(266,273,943)

(344,847) $

(18,463,552)

284,137,450 $

327,990,419

B u s in e s s - t yp e a c t iv it ie s No n-de pre c ia ble : La nd

C o ns truc tio n-in-pro gre s s To ta l no n-de pre c ia ble a s s e ts a t his to ric a l c o s t

2,571,192

34,761,110

49,504,189

(4,081,745)

80,183,554

37,332,302

49,504,189

(4,081,745)

82,754,746

De pre c ia ble : B uildings

30,889,568

Im pro ve m e nts

16,087,047

M a c hine ry a nd e quipm e nt

9,254,707

Inta ngible wa te r rights

1,166,670

30,954,585

Utility pro pe rty To ta ls de pre c ia ble a s s e ts a t his to ric a l c o s t

(29,000)

10,392,377

30,954,585

321,598,115

11,878,917

333,477,032

408,784,022

13,045,587

(29,000)

421,800,609

Le s s a c c um ula te d de pre c ia tio n (10,463,571)

(896,814)

Im pro ve m e nts

B uildings

(6,192,736)

(246,095)

(6,438,831)

M a c hine ry a nd e quipm e nt

(5,726,573)

(479,409)

2,758

(6,203,224)

Inta ngible wa te r rights Utility pro pe rty To ta l a c c um ula te d de pre c ia tio n Ne t de pre c ia ble a s s e ts B us ine s s -type c a pita l a s s e ts , ne t

(17,404,950)

(644,232)

(18,049,182)

(158,623,687)

(11,034,325)

(169,658,012)

(198,411,517)

(13,300,875)

2,758

(211,709,634)

(26,242)

210,090,975

210,372,505 $

(11,360,385)

247,704,807

(255,288) $

49,248,901

(4,107,987)

292,845,721

CITY OF EDMOND, OKLAHOMA ANNUAL FINANCIAL REPORT June 30, 2018

B a la nc e a t J uly 1, 2017 C o m p o n e n t Un it s : His to ric a l P re s e rva tio n Trus t: No n-de pre c ia ble : La nd C a pita l a s s e ts , no n-de pre c ia ble De pre c ia ble : B uildings To ta ls a t his to ric a l c o s t Le s s a c c um ula te d de pre c ia tio n: M a c hine ry a nd e quipm e nt To ta ls a c c um ula te d de pre c ia tio n C a pita l a s s e ts , de pre c ia ble ne t C a pita l a s s e ts , ne t Edm o nd Ec o no m ic De ve lo pm e nt Autho rity: De pre c ia ble : M a c hine ry a nd e quipm e nt To ta ls a t his to ric a l c o s t Le s s a c c um ula te d de pre c ia tio n: M a c hine ry a nd e quipm e nt

100,450 100,450

De duc tio ns

B a la nc e a t J une 30, 2018

100,450 100,450

300,495 300,495

40,116 40,116

340,611 340,611

(234,218) (234,218) 66,277

(29,506) (29,506) 10,610

(263,724) (263,724) 76,887

177,337

49,519 49,519

166,727

10,610

41,846 41,846

7,673 7,673

To ta l a c c um ula te d de pre c ia tio n C a pita l a s s e ts , ne t

Additio ns

(31,808)

(3,452)

(31,808)

(3,452)

10,038

4,221

(35,260) (35,260)

14,259

Â Depreciation expense was charged to functions in the statement of activities as follows: Depreciation expense charged to governmental activities: General government Public safety Streets and highways Culture and recreation Health and welfare

In addition, depreciation on capital assets held by the City's internal service funds is charged to the various functions based on their usage of the assets T otal governmental activities depreciation expense

1,012,295 2,307,467 10,633,883 2,640,658 254,352 2,332,172

19,180,827

Electric Water Sanitation Wastewater Arcadia Lake Drainage Golf Course

3,237,545 7,121,800 20,707 2,532,593 204,311 66,375 117,544

T otal business-type activities depreciation expense

13,300,875

Depreciation expense charged to business-type activities:

CITY OF EDMOND, OKLAHOMA ANNUAL FINANCIAL REPORT June 30, 2018

3.E. LONG-TERM DEBT The reporting entity's long-term debt is segregated by the amounts involving governmental activities, business-type activities and component units. Governmental Activities Long-Term Debt As of June 30, 2018, the governmental activities long-term debt consisted of the following: Accrued Compensated Absences: Accrued compensated absences reported in the governmental activities are comprised of accrued vacation leave. Current portion Non-current portion Total Accrued Compensated Absences

412,198 3,709,863 4,122,061

Revenue Bonds Payable: 2010 Series Sales Tax and Utility System Bonds, dated December 30, 2010, issued by the Edmond Public Works Authority, secured by utility revenues and pledged sales tax, interest rates at 2.84%, final maturity July 1, 2021. The bond’s debt service is currently paid with the restricted sales tax.

$ 4,420,000

2012 Refunding Series Sales Tax and Utility System Bonds, dated August 16, 2012, issued by the Edmond Public Works Authority, secured by utility revenues and pledged sales tax, interest rates at 2.06%, final maturity July 1, 2023. The bond’s debt service is currently paid with the restricted sales tax.

6,930,000

2013 Series Sales Tax and Utility System Bonds, dated May 14, 2013, issued by the Edmond Public Works Authority, secured by utility revenues and pledged sales tax, interest rates at 1.68%, final maturity July 1, 2023. The bond’s debt service is currently paid with the restricted sales tax.

7,280,000

2014 Refunding Series Sales Tax and Utility System Bonds, dated April 3, 2014, issued by the Edmond Public Works Authority, secured by utility revenues and pledged sales tax, interest rates at 2.47%, final maturity July 1, 2024. The bond’s debt service is currently paid with the restricted sales tax.

8,402,551

2014B Refunding Series Sales Tax and Utility System Bonds, dated December 9, 2014 issued by the Edmond Public Works Authority, secured by utility revenues and pledged sales tax, interest rate at 2.25%, final maturity July 1, 2026. The bond’s debt service is currently paid with restricted sale tax.

15,525,000

Total Revenue Bonds Payable Add: Unamortized Bond Premium Less: Deferred amount on Refunding Total Revenue Bonds Payable (Net)

$42,557,551 2,924,439 (892,275) $ 44,589,715

Current portion, net Non-current portion, net Deferred Outflow Total Revenues Bonds Payable, net

6,956,633 38,525,357 (892,275) $ 44,589,715

CITY OF EDMOND, OKLAHOMA ANNUAL FINANCIAL REPORT June 30, 2018

Business-type Activities Long-Term Debt As of June 30, 2018, the long-term debt payable from enterprise fund resources consisted of the following: Revenue Bonds Payable: 2014 Refunding Series Sales Tax and Utility System Bonds, dated April 3, 2014, issued by the Edmond Public Works Authority, secured by utility revenues and pledged sales tax, interest rates at 2.47%, final maturity July 1, 2024.

$7,256,052

2015 Refunding Series Sales Tax and Utility System Bonds, dated April 2, 2015, issued by the Edmond Public Works Authority, secured by utility revenues and pledged sales tax, interest rates at 1.87%, final maturity July 1, 2023.

12,500,000

2016 Series Sales Tax and Utility System Bonds, dated July 5, 2016, issued by the Edmond Public Works Authority, secured by utility revenues and pledged sales tax, interest rates at 3.00% to 5.00%, final maturity July 1, 2046.

41,085,000

2017 Series Sales Tax and Utility System Bonds, dated October 19, 2017, issued by the Edmond Public Works Authority, secured by utility revenues and pledged sales tax, interest rates at 3.00% to 5.00%, final maturity July 1, 2047.

167,025,000

Total Revenues Bonds Payable Plus: Unamortized Premium Deferred amount on refunding Total Revenues Bonds Payable (Net of unamortized discount) Current portion, net Non-current portion, net Deferred Outflow Total Revenues Bonds Payable, net

$227,866,052 21,064,313 (489,079) $ 248,441,286 $ 5,358,360 243,572,005 (489,079) $ 248,441,286

Notes Payable: 2005 C Series Construction Drinking Water SRF Promissory Note to Oklahoma Water Resources Board, original issue amount of $3,726,484, secured by utility revenues and pledged sales tax, administrative fee of .5%, final maturity September 15, 2024.

$1,242,161

2013 Refunding General Sales Tax Revenue Note to Bank of America, original issue amount of $16,085,000 secured by utility revenues and pledged sales tax, interest rate of 2.86%, final maturity of July 1, 2026.

11,105,000 $ 12,347,161

Current portion Non-current portion Total Note Payable

$ 1,381,110 10,966,051 $ 12,347,161

Capital Lease Obligations Payable: Capital lease with Oklahoma Municipal Power Authority related to Loop Lease Program (Latham), original lease amount of $17,446, payable in monthly installments of $215, interest at 1%, final maturity July 2021.

$ 7,626

CITY OF EDMOND, OKLAHOMA ANNUAL FINANCIAL REPORT June 30, 2018

Current portion Non-current portion Total Note Payable

$ 2,517 5,109 $ 7,626

Accrued Compensated Absences: Accrued compensated absences reported in the business-type activities are comprised of accrued vacation leave: Current portion Non-current portion Total Accrued Compensated Absences

$ 75,795 682,162 $757,957

Component Unit Long-Term Debt Accrued Compensated Absences: Accrued compensated absences reported as a fund liability within the EEDA component unit statement of net position at June 30, 2018, are as follows: Current portion Non-current portion Total Accrued Compensated Absences

$3,502 31,516 $35,018

Changes in Long-Term Debt - Primary Government and Component Units The following is a summary of changes in long-term debt for the year ended June 30, 2018: B a la nce J uly 1, 2017

Additio ns

De ductio ns

B a la nc e J une 30, 2018

Am o unt due in o ne ye a r

42,557,550

$ 6,956,633

4,122,061

412,198

G o v e rn m e n t a l A c t iv it ie s : R e ve nue B o nds P a ya ble

$ 49,258,947

Ac c rue d C o m pe ns ate d Abs e nce s

3,754,335

3,016,622

6,701,397 2,648,896

53,013,282

3,016,622

9,350,293

46,679,611

$ 7,368,831

13,688,263

2,449,479

3,790,581

12,347,161

B u s in e s s - t yp e A c t iv it ie s : No te P a ya ble C a pita l Le a s e Obliga tio ns P a ya ble

22,262

R e ve nue B o nds P a ya ble

1,381,110

14,636

7,626

2,517

66,101,744

167,025,000

5,260,692

227,866,052

5,358,360

753,120

554,689

549,852

757,957

75,795

$ 80,565,389

$ 170,029,168

9,615,761

$ 240,978,796

$ 6,817,782

12,940

Ac c rue d C o m pe ns ate d Abs e nce s

C o m p o n e n t Un it s : Ac c rue d C o m pe ns ate d Abs e nce s

28,460

19,498

35,018

3,502

Accrued compensated absences liability is liquidated by the General Fund, Police Public Safety Limited Tax Fund, 69

CITY OF EDMOND, OKLAHOMA ANNUAL FINANCIAL REPORT June 30, 2018

and the Fire Public Safety Limited Tax Fund. Debt Service Requirements to Maturity - Primary Government The annual debt service requirements to maturity for long-term debt as of June 30, 2018 are as follows: Gove rnme ntal-Type Activitie s Revenue Bonds Payable Year Ending June 30,

Principal

2019

Interest

6,956,633

1,496,060

2020

7,194,765

1,249,816

2021

7,455,266

994,638

2022

6,115,246

774,476

2023

6,310,486

579,291

2024-2026

8,525,154

662,272

T otal

42,557,550

5,756,553

Business-Type Activities Notes Payable Year Ending June 30, 2019

Principal $

1,381,110

Revenue Bonds Payable Interest

Principal

315,223

5,358,360

Capital Lease Obligations Payable

Interest $

9,493,593

Principal $

2,517

Interest $

2020

1,411,102

280,019

6,570,235

9,256,025

2,542

2021

1,451,102

243,859

6,839,734

8,999,438

2,567

2022

1,491,102

206,568

7,089,754

8,735,774

2023

1,531,102

168,133

7,374,514

8,457,734

2024-2028

5,081,643

270,729

29,719,274

37,759,678

2029-2033

29,950,000

31,610,000

2034-2038

36,710,000

24,853,600

2039-2043

44,895,000

16,373,025

2044-2048

53,359,181

5,698,150

227,866,052

$ 161,237,017

T otal

$ 12,347,161

$ 1,484,531

7,626

113

Defeased Bonds Outstanding The City, through its various public trusts, has in substance defeased a number of outstanding bond issues by placing deposits in irrevocable trusts (escrow accounts) for the purchase of U.S. government securities to pay the principal and interest on the refunded bonds as they become due and payable. For financial reporting purposes, both the defeased bonds outstanding and the escrowed securities have been excluded from the financial statements. At year-end, the remaining outstanding defeased bonds were as follows: Outstanding at June 30, 2018 Primary Government: Utility System Revenue Bonds, Series 2003B $825,000 Utility System Revenue Bonds, Series 2004 5,840,000 Sales Tax and Utility Revenue Bonds, Series 2004 7,930,000 Sales Tax and Utility Revenue Bonds, Series 2005 15,503,000 Utility System Revenue Bonds, Series 2005 13,985,000 Total Outstanding Defeased Bonds

$44,083,000

CITY OF EDMOND, OKLAHOMA ANNUAL FINANCIAL REPORT June 30, 2018

Component Unit - Conduit Debt The Edmond Economic Development Authority (EEDA) has issued bonds for various industrial development projects. The following bonds were outstanding at June 30, 2018: Outstanding Original Issue June 30, 2018 EEDA - Student Housing Revenue Bonds 2001A (UCO Student Housing Foundation) $8,305,000 $5,925,000 EEDA - Revenue Note 2000 (UCO Music Lab Project) (UCO Foundation)

1,135,000 $9,440,000

479,679 $6,404,679

The bonds and notes payable comprising the Authorityâ&#x20AC;&#x2122;s indebtedness are not indebtedness of the State of Oklahoma, nor of the City of Edmond, nor is it a personal obligation of the Edmond Economic Development Authority trustees. These bonds are a limited obligation of the Authority payable solely from a portion of the Trust Estate consisting of the Authority bond and related Financing Agreement and other security outlined in the Mortgage or Loan Indentures. This debt is considered non-commitment (conduit) debt to the City and Authority since the debt payments are made solely from the notes receivable or financing agreement proceeds from Collegiate Foundation and UCO. Payments are made directly by the Collegiate Foundation and UCO to trustee banks who pay the bondholders. In the event of default by the Collegiate Foundation and UCO, the City or Authority has no obligation, in substance, to make any payments on the debt since the notes receivable, financing agreements and mortgages on the property with the industrial occupant are the only security for the debt. As a result of the non-commitment determination, the Authorityâ&#x20AC;&#x2122;s indebtedness and related receivables from industrial occupants are not recorded in the financial statements. 3.F. INTERFUND BALANCES AND ACTIVITIES Internal Balances: Due From

Electric Fund

Water Fund

Wastewater Fund

Other Enterprise Funds

Internal Service Fund

Total Due To

Due To

General Fund

Nonmajor Governmental Fund Electric Fund Water Fund Wastewater Fund Other Enterprise Fund Internal Service Funds

1,177,727 -

299,864 -

54,920 -

30,062 -

2,253 470,496 255,117 195,039 (32,769) -

1,179,980 470,496 255,117 195,039 352,077 54

Total Due From

1,177,727

299,864

$ 54,920

30,062

890,136

2,452,763

CITY OF EDMOND, OKLAHOMA ANNUAL FINANCIAL REPORT June 30, 2018

Receivable Fund

Payable Fund

Amount

General Fund

CDBG Fund

General Fund

Hospital Sale Trust

General Fund

2012 Capital Improvement Fund

Drainage Fund

Ambulatory Fund

Drainage Fund

Art in Public Places

Drainage Fund

Nature of Interfund Balance

86,538

Negative pooled cash

1,011,000

Negative pooled cash

80,189

Negative pooled cash

2,248

Posting correction

Electric Fund

470,496

Posting correction

Drainage Fund

Water Fund

255,117

Posting correction

Drainage Fund

Wastewater Fund

195,039

Posting correction

Drainage Fund

Santiation Fund

64,938

Posting correction

Electric Fund

Drainage Fund

184,583

Posting correction

Water Fund

Drainage Fund

54,920

Posting correction

Wastewater Fund

Drainage Fund

30,062

Posting correction

Santiation Fund

Drainage Fund

17,574

Posting correction

Vehicle Maintenance Fund

Fleet Fund

Posting correction

2,452,763

Reconciliation to Fund Financial Statements: Due From Governmental Funds

Due to 1,177,727

Proprietary Funds

Net Interfund Balances

1,179,980

1,274,982

1,272,729

Internal Service Funds $

2,452,763

(2,253) 2,253 -

2,452,763

Reconciliation to Government-wide Financial Statements: Net Interfund Balance

2,253

Internal Service Fund Allocation

8,076,381 $

8,078,634

Interfund transfers for the year ended June 30, 2018 were as follows: Transfers In

Transfers Out

General Fund

General Fund 2000 Capital Improvement Fund Nonmajor Governmental Fund Electric Fund Water Fund Wastewater Fund Other Enterprise Fund Total Transfer In

4,027,915 13,899,790 252,690 358,284 18,538,679

Fire Public Police Public Safety Limited Safety Limited Tax Fund Tax Fund $ 16,223,760 1,500,000 $ 17,723,760

19,901,146 19,901,146

2000 Capital Improvement Tax Fund $

1,111,010 1,111,010

Nonmajor Governmental Funds

Electric Fund

329,443 144,042 1,131,002 1,604,487

59 16 75

Wastewater Fund

Water Fund $

13,647,100 13,647,100

Other Enterprise Funds $

935,018 935,018

Total Transfer Out

$ 51,036,467 144,042 3,742,012 4,027,915 13,899,790 252,749 358,300 $

73,461,275

CITY OF EDMOND, OKLAHOMA ANNUAL FINANCIAL REPORT June 30, 2018

Transfe r from PWA Electric PWA Water PWA Water PWA Sanitation PWA Wastewater Park Sales T ax General Fund General Fund General Fund General Fund General Fund General Fund General Fund General Fund PWA Wastewater Hospital Sale T rust Fund 2017 Captial Improvement Fund 2000 Capital Improvement Fund 2012 Public Safety Center T ax Fund 2012 Public Safety Center T ax Fu

Transfe r to General Fund General Fund General Fund General Fund General Fund Art in Public Places Capital Improvement Fund Fire Public Safety Limited T ax Police Public Safety Limited T ax Convention and Visitors Bureau Art in Public Places PWA Arcadia Lake Citilink Fund PWA Water PWA Electric General Fund Fire Public Safety Limited T ax Art in Public Places 2000 Capital Improvement Fund 2017 Captial Improvement Fund

Amount 4,027,915 252,690 13,647,100 358,284 252,690 19,992 150,000 16,223,760 19,901,146 100,000 79,443 235,018 700,000 13,647,100 16 59 1,500,000 144,042 1,111,010 1,111,010 $ 73,461,275 $

Nature of Inte rfund Balance Budgeted annual transfer Budgeted annual transfer Return of pledged sales tax Budgeted annual transfer Budgeted annual transfer Budgeted annual transfer Budgeted annual transfer Dedicated sales tax- ordinance Dedicated sales tax- ordinance Budgeted annual funding Funding for public art Budgeted annual transfer Budgeted annual transfer Pledged sales tax- bond indenture Budgeted annual transfer Budgeted annual transfer Budgeted annual transfer Funding for public art Budgeted annual transfer Budgeted annual transfer

Re conciliation to Fund Financial Statements:

Transfe r In Governmental Funds

Proprietary Funds

Transfe r O ut 58,879,082

14,582,193 $

73,461,275

54,922,521

Net Inte rfund Balances $

18,538,754 $

73,461,275

3,956,561 (3,956,561)

Transfers between the primary government and component units for the year ended June 30, 2018 were as follows: Transfe r From

Transfe r To

General Fund

EEDA

Amount

Nature of Transfe r

574,420

Operating subsidy

CITY OF EDMOND, OKLAHOMA ANNUAL FINANCIAL REPORT June 30, 2018

3.G. FUND BALANCES AND NET POSITION The following table shows the net position restricted for other purposes shown on the Statement of Net Position: Fund

Restricted By

Hospital T rust Ambulatory Fund

Enabling legislation Enabling legislation

Amount $ $

Asset Forfeiture Cemetery Care Fund Workers' comp escrow

Statutory requirements Statutory requirements Statutory requirements

$ General Fund Fire Public Safety Limited T ax Fund Police Public Safety Limited T ax Fund 2000 Capital Improvement T ax Fund 2017 Capital Improvement Fund Senior Center Fund Park Sales T ax Fund Art in Public Places Fund Roadway Improvement Fund 1996 Capital Improvement Fund Convention and Visitors Bureau Fund

External contracts External contracts External contracts External contracts External contracts External contracts External contracts External contracts External contracts External contracts External contracts

7,286,845 530,759 7,817,604 629,201 125,975 1,545,945 2,301,121 3,364,662 12,860,886 5,436,821 20,413,064 10,333,904 248,108 1,055,498 74,808 10,199 11,173 230,422 54,039,545

CITY OF EDMOND, OKLAHOMA ANNUAL FINANCIAL REPORT June 30, 2018

The following table shows the fund balance classifications as shown on the Governmental Funds Balance Sheet: M a jo r Go ve rnm e nta l F unds

Ge ne ra l F und

F ire P ublic S a fe ty Ta x

Othe r Go ve rnm e nta l F und To ta l

2000 C a pita l P o lic e P ublic Im pro ve m e nt Ta x S a fe ty Ta x

F und B a la nc e R e s tric te d F o r: P o lic e o pe ra tio ns

F ire o pe ra tio ns

5,436,821

12,860,886

5,436,821 12,860,886

Ho s pita l s a le trus t

7,286,845

Am bula nc e s e rvic e s

530,759

Ec o no m ic de ve lo pm e nt

230,422

C a pita l im pro ve m e nts

10,345,077

30,758,141

S tre e t im pro ve m e nts

10,199

Art in public pla c e s

74,808

74,808 1,055,498

20,413,064

C ulture a nd re c pro gra m s

1,055,498

C e m e te ry im pro ve m e nts

125,975

S e nio r c e nte r pro gra m s

248,108

629,201

P o lic e -drug pro gra m s J uve nile c o urt pro gra m s S tre e t a nd a lle y o pe ra tio ns Tra ns po rta tio n R o a dwa y wide ning S ub-to ta l re s tric te d

687,882

2,288,071

1,190

387,519

3,364,662

12,860,886

5,436,821

20,413,064

629,201

20,536,892

62,612,325

C o m m itte d fo r: S e nio r c e nte r pro gra m s

3,175

S ub-to ta l c o m m itte d

3,175

As s igne d fo r: C a pita l im pro ve m e nts

1,190,187

5,047,238

C ulture a nd re c pro gra m s

74,450

417,413

491,863

C e m e te ry im pro ve m e nts

5,712

Art in public pla c e s

8,587

S tre e t im pro ve m e nts

992

P o lic e o pe ra tio ns

F ire o pe ra tio ns Ec o no m ic de ve lo pm e nt

1,146,065

961,787

887,299

3,857,051

992 1,146,065

961,787

19,783

907,082

P o lic e -drug pro gra m s

41,546

S e nio r c e nte r pro gra m s

14,301

Am bula nc e s e rvic e s

21,165

S upple m e nt o f ne xt fis c a l ye a rs budge t S ub-to ta l a s s igne d Una s s igne d (de fic it): TOTAL F UND B ALANC E

1,758,582 2,720,331

961,787

6,731,159 $ 12,816,152

1,146,065

3,857,051

$ 13,822,673

1,719,686

$ 6,582,886

(128,156)

24,270,115

21,165 1,758,582

22,131,597

10,404,920 6,603,003 $ 79,623,423

The City restated beginning net position as follows:

Beginning net position, as previously reported

Governmental

Business-type

Enterprise

Activities

Funds

304,920,919

Implementation of GASB Statement 75, OPEB Beginning net position, restated

(1,966,664) $

302,954,255

350,350,476

(356,720) $

349,993,756

342,571,058

Internal Service Funds $

(356,720) $

342,214,338

34,136,165 (1,530,875)

32,605,290

CITY OF EDMOND, OKLAHOMA ANNUAL FINANCIAL REPORT June 30, 2018

The net position was restated due to a change in accounting principle related to the implementation of GASB Statement No. 75, Accounting and Financial Reporting for Postemploymemt Benefits Other than Pension. This restatement decreased beginning total net positon at the government-wide financial statements by $2,323,384. NOTE 4. OTHER NOTES 4.A. EMPLOYEE PENSION AND OTHER BENEFIT PLANS The City participates in three employee pension systems as follows: Name of Plan/System

Type of Plan

Oklahoma Police Pension and Retirement Fund

Cost Sharing Multiple Employer - Defined Benefit Plan

Oklahoma Firefighters Pension and Retirement Fund

Cost Sharing Multiple Employer - Defined Benefit Plan

City of Edmond Employees' Retirement System

Single Employer - Defined Benefit Plan

The aggregate net pension liability, deferred inflows, deferred outflows and pension expense for the plans at June 30, 2018: Deferred Outflow Police Pension

Fire Pension Single Employer Plan Totals

Deferred Inflow 1,634,300 $

9,538,540

1,351,657

8,007,371 $

Net Pension Liability

3,531,711 $

47,467,983

365,781

21,077,622 $

267,765 $ 18,051,070

3,351,738 $

65,786,818 $

Pension Expense 1,673,763 5,619,191 4,490,038 11,782,992

Reconciliation to government-wide financials; Governmental

Bussiness-type

60,381,269 5,248,686

Component unit

156,863 $

65,786,818

Oklahoma Police and Firefighter's Pension and Retirement Systems The City of Edmond, as the employer, participates in two statewide cost-sharing multiple employer defined benefit plans on behalf of the police officers and firefighters. The systems are funded by contributions from participants, employers, insurance premium taxes, and state appropriations, as necessary. The following is a summary of eligibility factors, contribution methods, and benefit provisions.

CITY OF EDMOND, OKLAHOMA ANNUAL FINANCIAL REPORT June 30, 2018

Oklahoma Police Pension and Retirement System

Oklahoma Firefighter Pension and Retirement System

Obtaining separately issued financial statements

Police Pension and Retirement 1001 N.W. 63rd St., Suite 605 Oklahoma City, OK 73116-7335

Firefighters Pension & Retirement 4545 N. Lincoln Blvd., Suite 265 Oklahoma City, OK 73105-3414

Eligibility to participate

All full-time officers, employed by a participating municipality, not less than 21 years of age or more than 45 years of age when hired.

All full-time or voluntary firefighters of a participating municipality hired before age 45.

Authority establishing contribution obligations and benefits

State Statute

Employee's contribution rate (percent of covered payroll)

City's contribution rate (percent of covered payroll)

13%

14%

State obligation

State appropriation to fund the unfunded actuarial accrued liability

Period required to vest

10 years

Eligibility and benefits for distribution (full-time)

20 years credited service, 2.5% of final average salary multiplied by the years of credited service with a maximum of 30 years considered; if vested, at or after age 50, or after 10 but before 20 years of credited service, with reduced benefits.

20 years credited service 2.5% of final average salary multiplied by the years of credited service with a maximum of 30 years considered; if vested, at or after age 50, or after 10 but before 20 years of credited service, with reduced benefits.

Deferred retirement option

Yes, 20 years credited service with additional option to participate in a Back D.O.P

Yes, 20 years credited service with continued service for a maximum of 30 or more years.

Yes

Yes, if vested by 5/83

Yes

Yes Yes

Provisions for: Cost of living adjustments (normal retirement) Death (duty, non-duty, post retirement) Disability (duty, non-duty) Cost of living allowances

CITY OF EDMOND, OKLAHOMA ANNUAL FINANCIAL REPORT June 30, 2018

Trend Information Oklahoma Police Pension and Retirement System: Contributions to the police pension plan from the City were $1,380,245. The State of Oklahoma also made onbehalf contributions to OPPRS in the amount of $1,374,202 that is reported as both a revenue and an expenditure in the General Fund Statement of Revenues, Expenditures, and Changes in Fund Balance. In the government-wide Statement of Activities, revenue is recognized for the state’s on-behalf contributions on an accrual basis of $1,193,422. These on-behalf payments did not meet the criteria of a special funding situation. Oklahoma Firefighters Pension and Retirement System: Contributions to the fire pension plan from the City were $1,570,090. The State of Oklahoma also made on-behalf contributions to OPPRS in the amount of $3,521,519 that is reported as both a revenue and an expenditure in the General Fund Statement of Revenues, Expenditures, and Changes in Fund Balance. In the government-wide Statement of Activities, revenue is recognized for the state’s on-behalf contributions on an accrual basis of $3,362,268. These on-behalf payments did not meet the criteria of a special funding situation. Net Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions Oklahoma Police Pension and Retirement System: At June 30, 2018, the City reported a liability of $267,765 for its proportionate share of the Police net pension liability. The net pension liability was measured as of June 30, 2017, and the total pension liability used to calculate the net pension liability was based on the City’s contributions received by the pension plan relative to the total contributions received by the pension plan for all participating employers as of June 30, 2017. Based upon this information, the City’s proportion was 3.181 percent. For the year ended June 30, 2018, the City recognized pension expense of $1,673,763. At June 30, 2018, the City reported deferred outflows of resources and deferred inflows of resources related to pension from the following sources: Deferred Outflows

Deferred Inflows

of Resources

Difference between expected and actual experience

13,448

$ 1,618,836

Net difference between projected and actual earnings on pension plan investments Changes in proportion City contributions during measurement date

1,994,388

143,630

15,464

City contributions subsequent to the measure date

1,380,245

Total

3,531,711

$ 1,634,300

The $1,380,245 reported as deferred outflows of resources related to pensions resulting from City contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2019. Any other amounts reported as deferred outflow of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows:

CITY OF EDMOND, OKLAHOMA ANNUAL FINANCIAL REPORT June 30, 2018

Year ended June 30: 2019

2020

(25,673) 1,022,746

2021

491,116

2022

(788,682)

2023

(182,341) $

517,166

Oklahoma Firefighters Pension and Retirement System: At June 30, 2018, the City reported a net pension liability of $47,467,983 for its proportionate share of the total net pension liability. The net pension liability was measured as of June 30, 2017, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of July 1, 2017. The City’s proportion of the net pension liability was based on the City’s contributions received by the pension plan relative to the total contributions received by pension plan for all participating employers as of June 30, 2017. Based upon this information, the City’s proportion was 3.7741 percent. For the year ended June 30, 2018, the City recognized pension expense of $5,619,191. At June 30, 2018, the City reported deferred outflows of resources and deferred inflows of resources related to pension from the following sources:

Changes of assumptions

Deferred Outflows

Deferred Inflows

of Resources

6,340,906

Net difference between projected and actual earnings on pension plan investments

Changes in proportion

1,322,771

1,627,544

City contributions during measurement date

28,886

City contributions subsequent to the measure date

1,570,090

Total

9,538,540

1,351,657

The $1,570,090 reported as deferred outflows of resources related to pensions resulting from City contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2019. Any other amounts reported as deferred outflow of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: Year ended June 30: 2019

2,211,500

2021

1,747,987

2022

502,857

2023

1,170,682

thereafter

241,000 $

742,767

2020

6,616,793

CITY OF EDMOND, OKLAHOMA ANNUAL FINANCIAL REPORT June 30, 2018

Actuarial Assumptions Oklahoma Police Pension and Retirement System: The total pension liability was determined by an actuarial valuation as of July 1, 2017, using the following actuarial assumptions, applied to all prior periods included in the measurement: Inflation:

Salary increases:

4.5% to 17% average, including inflation

Investment rate of return:

7.5% net of pension plan investment expense

Cost-of-living adjustments:

Police officers eligible to receive increased benefits according to repealed Section 50-120 of Title 11 of the Oklahoma Statutes pursuant to a court order receive an adjustment of 1/3 to 1/2 of the increase or decrease of anyadjustment to the to the base salary of a regular police officer, based on an increase in base salary.

M ortality rates:

Active employees (pre-retirement) RP-2000 Blue Collar Healthy Combined table with age set back 4 years with fully generational improvement using Scale AA. Active employees (post-retirement) and nondisabled pensioners: RP-2000 Blue Collar Healthy Combined table with fully generational improvement using Scale AA. Disabled pensioners: RP-2000 Blue Collar Healthy Combined table with age set forward 4 years with fully generational improvement using Scale AA.

The actuarial assumptions used in the July 1, 2017, valuation were based on the results of an actuarial experience study for the period July 1, 2007, to June 30, 2012. The long-term expected rate of return on pension plan investments were determined using a building block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense, and inflation) are developed for each major asset class. These ranges are combined to produce the longterm expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. Best estimates of arithmetic real rates of return for each major asset class included in the pension planâ&#x20AC;&#x2122;s target asset allocation as of June 30, 2017, are summarized in the following table: Long-Term Expected Asset Class

Real Rate of Return

Fixed income

4.51%

Domestic equity

6.62%

International equity

9.70%

Real estate

6.96%

Private equity

9.86%

Commodities

5.18%

The current allocation policy is that approximately 60% of assets in equity instruments, including public equity, long-short hedge, venture capital, and private equity strategies; approximately 25% of assets in fixed income to 80

CITY OF EDMOND, OKLAHOMA ANNUAL FINANCIAL REPORT June 30, 2018

include investment grade bonds, high yield and non-dollar denominated bonds, convertible bonds, and low volatility hedge fund strategies; and 15% of assets in real assets to include real estate, commodities, and other strategies. Oklahoma Firefighters Pension and Retirement System: The total pension liability was determined by an actuarial valuation as of July 1, 2017, using the following actuarial assumptions, applied to all prior periods included in the measurement: Inflation:

Salary increases:

3.5% to 9.0% average, including inflation

Investment rate of return:

7.5% net of pension plan investment expense

Mortality rates were based on the RP2000 combined healthy with blue collar adjustment as appropriate, with adjustments for generational mortality improvement using scale AA for healthy lives and no mortality improvement for disabled lives. The actual assumptions used in the July 1, 2017 valuation were based on the results of an actuarial experience study for the period July 1, 2007, to June 30, 2012. The long-term expected rate of return on pension plan investments were determined using a building block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense, and inflation) are developed for each major asset class. These ranges are combined to produce the longterm expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. Best estimates of arithmetic real rates of return for each major asset class included in the pension plan’s target asset allocation as of June 30, 2017, are summarized in the following table: Asset Class

Target

Long-Term Expected

Allocation

Real Rate of Return

Fixed income

20%

4.38%

Domestic equity

47%

7.72%

International equity

15%

9.70%

Real estate

10%

6.96%

Other assets

5.75%

Discount Rate Police and Fire Pensions discount rate used to measure the total pension liability was 7.5%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current contribution rate and that contributions from employers will be made at contractually required rates, determined by State statues. Projected cash flows also assume the State of Oklahoma will continue contributing 14% for Police and 36% for Fire of the insurance premium, as established by statute. 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 was applied to all periods of projected benefit payments to determine the total pension liability. Sensitivity of the Net Pension Liability to Changes in the Discount Rate The following presents the net pension liability of the employers calculated using the discount rate of 7.5%, as well as what the Plans’ net pension liability would be if it were calculated using a discount rate with is 1-percentage point lower (6.5%) or 1-percentage point higher (8.5%) than the current rate:

CITY OF EDMOND, OKLAHOMA ANNUAL FINANCIAL REPORT June 30, 2018

1% Decrease

Current Discount

1% Increase

(6.5%)

Rate (7.5%)

(8.5%)

Police Pension net pension liability (asset)

9,049,752

267,765

(7,149,948)

Fire Pension net pension liability

62,271,045

47,467,983

34,922,725

Pension plan fiduciary net position Detailed information about the pension plan’s fiduciary net position is available in the separately issued financial report of the OPPRS; which can be located at www.ok.gov/OPPRS and the FPRS; which can be located at www.ok.gov/FPRS. Edmond Employees Retirement System - Single-Employer, Defined Benefit Pension Plan Plan Description, Contribution Information, and Funding Policies The City contributes to the City of Edmond Employees' Retirement System (the "System"), which is a single employer defined benefit pension plan administered by the City of Edmond Administrative Committee. All nonunion full-time City employees are eligible to participate in the System. The City’s retirement ordinance requires that actuarial valuations be performed in each even-numbered year to determine if the City’s fixed contribution rate is adequate to fund the actuarially determined contribution requirement. The System does not issue separate annual financial statements. The System and the City have a June 30th year-end. The City has elected to use the preceding year-end of the System as its measurement date; therefore, net pension liability and related deferred inflows are reported as of June 30, 2017. The System’s pension liability was based on an actuarial valuation as of June 30, 2017. Pension payments made by the City from the measurement date to June 30, 2018 are reported as deferred outflows. Summary of Significant Accounting Policies For purposes of measuring the net pension liability, deferred outflows or resources and deferred inflows of resources related to pensions, and pension expense, amounts and disclosures have been prepared using the accrual basis of accounting. Employee and employer contributions are recognized as System revenues in the period in which they are due to the plan. Benefits and refunds are recognized when due and payable pursuant to plan provisions. Investments are reported at fair value. Method Used to Value Investments - Values of System assets are reported at fair value market. As of June 30, 2018, the System held no related party investments or individual investments (other than U.S. government and U.S. government guaranteed securities) whose market value exceeds five percent or more of the net position available for benefits. Eligibility Factors and Benefit Provisions Year established and governing authority

1966; City Council Ordinance

Determination of Contribution requirements

City Ordinance; actuarially determined

Employer

8.99% - The city used the prior year actuarial determined employer contributions rate of 8.61% in fiscal year 2017

Plan members

5.25%

Funding of administrative costs

Investment earnings 82

CITY OF EDMOND, OKLAHOMA ANNUAL FINANCIAL REPORT June 30, 2018

Period required to vest

7 years

Eligibility for distribution

Age 65, or age 55 with seven years credited service

Provisions for: Disability benefits Death benefits

Yes Yes

Benefits paid:

Calculated on the average gross salary of a participantâ&#x20AC;&#x2122;s earnings during the highest 30 consecutive months of the last five years of credited service. Gross salary does not include payment of accumulated sick or annual leave upon termination of employment.

The City is required to contribute 9.49% of covered payroll to the System. These amounts were actuarially determined. System participants of the City contributed $1,453,680 during fiscal year 2018, and the City contributed $2,738,281. The Component Unit (EEDA) is also required to contribute 9.48% of covered payroll to the System. These amounts were actuarially determined. System participants of EEDA contributed $15,445 during fiscal year 2018, and EEDA contributed their portion of $24,004. Plan Membership Non-vested active members Fully vested active members

219 273

Total Active members

492

Non-active retired, beneficiaries, disabled and deferred vested participants Total Plan Participants

138 630

Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions At June 30, 2018, the City reported a liability of $17,894,207 and the EEDA component unit $156,863 for their proportionate share of the net pension liability. The net pension liability was measured as of June 30, 2017, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of July 1, 2017. There were no changes in assumptions or changes in benefit terms that affected measurement of the total pension liability. There were also no changes between the measurement date of July 1, 2017 and the Cityâ&#x20AC;&#x2122;s report ending date of June 30, 2018, that would have had a significant impact on the net pension liability. The following table reports the components of changes in net pension liability:

CITY OF EDMOND, OKLAHOMA ANNUAL FINANCIAL REPORT June 30, 2018

Balances at beginning of year, 7/1/2016

Total Pension

Plan Net

Net Pension

Liability

Position

Liability

82,657,035

62,737,667

$ 19,919,368

2,909,090

Changes for the year: Service cost

2,909,090

Interest expense

5,983,564

Contributions – employer

2,465,138

(2,465,138)

Contributions – employee

1,458,953

(1,458,953)

Net investment income

6,935,917

(6,935,917)

Benefits paid

(3,163,789)

Difference between actual and expected experience

(3,163,789)

87,006

Plan administrative expenses

87,006

(12,050)

5,815,871

Balances at end of year, 7/1/2017

Net changes

5,983,564

12,050

7,684,169

88,472,906

(1,868,298)

70,421,836

$ 18,051,070

For the year ended June 30, 2018, the City recognized pension expense of $4,454,490 and EEDA recognized pension expense of $35,548. At June 30, 2018, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: City

Component Unit

Deferred Outflows

Deferred Inflows

Deferred Outflows

Deferred Inflows

of Resources

Difference between expected and actual experience

1,209,352

10,601

Net difference between projected and actual earnings on pension plan investments

3,627,013

Change in proportion City contributions subsequent to the measure date Total

23,058

278,449

58,926

64,274

5,349

24,004

2,738,281 $

31,795

302,050

7,935,622

342,723

71,749

23,058

The City’s $2,738,281 and EEDA’s $24,004 reported as deferred outflows of resources related to pensions resulting from contributions subsequent to the measurement date will be recognized as a decrease of the net pension liability in the year ended June 30, 2019. Other amounts will be reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: Year ended June 30:

City 2019

2020

1,609,754

Component Unit $

2,438,106

10,606 17,867

2021

965,096

4,955

2022

(267,303)

(5,811)

2023

97,824

(2,001)

thereafter

11,141 $

Actuarial Assumptions Key assumptions used in the plan actuarial valuation were:

4,854,618

(929) $

24,687

CITY OF EDMOND, OKLAHOMA ANNUAL FINANCIAL REPORT June 30, 2018

Discount Rate

7.25%

Long-term expected rate of return

7.25%

M easurement date

7/1/2017

Inflation

2.50%

Projected salary increase*

2011 experience study

M ortality

RP 2000 projected

Retirement rates*

2011 experience study

Turnover*

2011 experience study

Actuarial cost method

Entry Age Normal

* In 2011 a detailed study was completed of the Retirement System’s demographic experience over the proceeding seven years. As a result, the Actuary recommended and the System’s Administrative Committee approved new assumptions based on actuarial experience. The assumption changes included a revised schedule of age-related retirement rates, age-related assumed pay increases replaced the 5% pay increase assumption and a new turnover assumption based on both age and employee years of service was implemented. These updates represent an ongoing and continuing process of refining prior assumptions. No changes in assumptions were made during fiscal year 2018. The City has adopted a funding method that is designed to fund all benefits payable to participants over the course of their working careers. Any differences between actual and expected experience are funded over a fixed period to ensure all funds necessary to pay benefits have been contributed to the trust before those benefits are payable. Therefore, the sufficiency of pension plan assets was made without a separate projection of cash flows. The long-term expected rate of return on pension plan investments was determined using a building block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense, and inflation) are developed for each major asset class. These ranges are combined to produce the longterm expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation (2.5%) and deducting expenses. Best estimates of arithmetic real rates of return for each major asset class included in the pension plan's target asset allocation as of June 30, 2017, are summarized in the following table: Asset Class

Target

Long-Term Expected

Allocation

Real Rate of Return

Domestic equity

20%

6.0%

International equity

23%

6.2%

Fixed income

29%

2.5%

28%

6.3%

Real estate, commodities and partnerships

Discount Rate The discount rate used to measure the total pension liability was 7.25%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the actuarially determined contribution amounts. Based on the assumption, 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 was adjusted to all periods of projected benefit payments to determine the total pension liability. 85

CITY OF EDMOND, OKLAHOMA ANNUAL FINANCIAL REPORT June 30, 2018

Sensitivity of the Net Pension Liability to Changes in the Discount Rate The following presents the net pension liability of the employers calculated using the discount rate of 7.25%, as well as what the Plan's net pension liability would be if it were calculated using a discount rate that is 1-percentage point lower (6.25%) or 1-percentage-point higher (8.25%) than the current rate: 1%

Current

Decrease

Discount

Increase

(6.25%)

Rate (7.25%)

(8.25%)

Employer's Total Pension Liability Employer's Net Pension Liability - FY 2017

30,108,437

18,051,070

8,028,082

Employer's Net Pension Liability - FY 2018

32,408,838

19,833,269

9,370,189

The components of the net pension liability of the City June 30, 2017 and 2018, were as follows: 2017 Total Net Pension Liability

Plan fiduciary Net Position

2018

88,472,906

70,421,836

Net Pension Liability

Plan Fiduciary Net Position as a percentage of

18,051,070 79.60%

93,625,387 73,792,118

19,833,269 78.82%

the total pension liability

Other Post-Employment Benefits Plan Description: City offers post-retirement benefit options for health care, prescription drug, dental and vision benefits for retired employees and their dependents that elect to make required contributions. The benefits are provided in accordance with State law, police and firefighter's union contracts and the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA). The relationship for these benefits is not formalized in a contract or plan document, only a few sentences in the administrative policy. These benefits are considered for accounting purposes to be provided in accordance with a single employer substantive plan. A substantive plan is one in which the plan terms are understood by the city and plan members. This understanding is based on communications between the employers and plan member and the historical pattern of practice with regard to the sharing of benefit costs. Substantially all of the government's employees may become eligible for those post-retirement benefits if they reach normal retirement age while working for the City. Benefits cease the month prior to the date the retiree or spouse reaches age 65. Benefits provided - The Plan covers all current retirees of the City who elected postretirement medical coverage through the City Health Plan and future retired employees of the City fully self-insured health plan. In accordance with administrative policy, the benefit levels are the same as those afforded to active employees; this creates an implicit rate subsidy. The benefits offered by the City to retirees include health, RX, and dental and vision benefits. The retiree retains coverage with the City, by making an election within 30 days of termination of service and have 7+ years of creditable service in with the City and are at least 55 years old at the time of termination. Police and Fire employees must have 20 years of service. The amount of benefit payments during fiscal year June 30, 2018 were $187,469.

CITY OF EDMOND, OKLAHOMA ANNUAL FINANCIAL REPORT June 30, 2018

Employees Covered by Benefit Terms Active Employees Inactive not yet receiving benefits Inactive or beneficiaries receiving benefits Total

710 0 54 764

Total OPEB Liability – The total OPEB liability was determined based on actuarial valuation performed as of June 30, 2017 which is also the measurement date. Actuarial Assumptions- The total OPEB liability in the June 30, 2017 valuation, was determined using the following actuarial assumptions:  Actuarial Cost Method - Entry Age  Discount Rate – 3.58% based on the 20 year municipal bond yield  Retirement Age – Civilians - 55 with 7 years of service, Police and Fire 20 years of service  Medical Trend Rates

Year 2017 2018 2019 2020 2030 2035 2040 2045 2050 2060

Rate 6.09% 6.05% 6.02% 5.99% 5.99% 5.87% 5.33% 5.15% 5.03% 4.87%

Changes in Total OPEB Liability – Total OPEB Liability $

Balances at Beginning of Year

6,136,680

Changes for the Year: Service cost

347,426

Interest expense

166,825

Change in assumptions

(365,447)

Benefits paid

(187,469)

Net Changes

(38,665) $

Balances End of Year

6,098,015

OPEB Liabilities, OPEB Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB - For the year ended June 30, 2018, the City recognized a OPEB benefit of $471,509. At June 30, 2018, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:

CITY OF EDMOND, OKLAHOMA ANNUAL FINANCIAL REPORT June 30, 2018

Differences between expected and actual experience

Deferred Outflows

Deferred Inflows

of Resources

Changes of assumptions

322,705

Net difference between projected and actual earnings on OPEB plan investments

City Contributions subsequent to the measurement date

201,140

Total

201,140

322,705

The $201,140 reported as deferred outflows of resources related to OPEB resulting from City benefit payments subsequent to the measurement date will be recognized as a reduction of the OPEB liability in the year ended June 30, 2019. Any other amounts reported as deferred outflows or resources and deferred inflows of resources related to OPEB will be recognized in pension expense as follows: Year Ended June 30: 2019

(42,742)

2020

(42,742)

2021

(42,742)

2022

(42,742)

2023

(42,742)

Thereafter

(108,995) $

(322,705)

Sensitivity of the City’s total OPEB liability to changes in the discount rate- The following presents the City’s total OPEB liability, as well as what the City’s total OPEB liability would be if it were calculated using a discount rate that is 1-percentage-point lower (2.58 percent) or 1-percentage-point higher (4.58 percent) than the current discount rate: 1% Decrease ( 2.58%) Employers' total OPEB liability

Current Discount Rate ( 3.58%)

7,225,464 $

1% Increae ( 4.58%)

6,098,015 $

5,206,770

Sensitivity of the City’s total OPEB liability to changes in the healthcare cost trend rates - The following presents the City’s total OPEB liability, as well as what the City’s total OPEB liability would be if it were calculated using healthcare cost trend rates that are 1-percentage-point lower (5.09 percent decreasing to 3.876 percent) or 1percentage-point higher (7.09 percent decreasing to 5.87 percent) than the current healthcare cost trend rates:

1% Decrease (5.09 % decreasing to 3.87%) Employers' total OPEB liability

Current Discount Rate (6.09 % decreasing to 4.87%)

5,241,276 $

1% Increae ( 7.09% decreasing to5.87%)

6,098,015 $

7,153,208

CITY OF EDMOND, OKLAHOMA ANNUAL FINANCIAL REPORT June 30, 2018

4.B. RISK MANAGEMENT The City is exposed to various risks of loss related to torts, theft of, damage to, or destruction of assets; errors and omissions; injuries to employees; employeeâ&#x20AC;&#x2122;s health and life; and natural disasters. The City manages these various risks of loss as follows: Type of Loss

Method Managed

Risk of Loss Retained

a. General Liability: - Torts - Errors and omissions - Police liability - Vehicle

City has insurance coverage for General Liability coverage. All claims are submitted to a third party administrator for determination of liability. Claims below the self insured retention (SIR) are accounted for within the Liability Tort Claim Fund.

City retains risk of losses up to $100,000 SIR per occurrence with excess coverage up to $5,000,000

b. Physical Property: - Theft - Damage to assets - Natural disasters

City has insurance coverage for Property & Contents and Boiler & Machinery. Claims for losses are submitted to insurance provider for reimbursement of losses.

City retains risk of loss up to the deductible amount of $10,000 for property and $10,000 for B & M. Coverage amounts vary by type of loss.

c. Workers Compensation: - Employee injuries

Self-insured with third-party administration of the claims process. Liability Tort Claim Fund used to account for activities with participating funds charged through an estimated annual claim cost for each fund. Administered by Cannon Cochran Management Services, Inc.

City retains risk of loss for first $450,000 or $750,000 of damage per occurrence depending on job classification. Stop loss insurance carried for damages above the City deductible up to a maximum aggregate of $2,000,000 per occurrence.

d. Health and Life: - Medical - Dental - Vision - Life and ADD - LTD

Self-insured with City paying a portion of health care premiums, and all of life, ADD and LTD premiums. Administered by Aetna and Unum.

Claims up to $130,000 per individual self-funded with stop-loss insurance up to $1,000,000 per person.

The City maintains a stop-loss policy for plans to limit risk associated with the plans. For insured programs, there have been no significant reductions in insurance coverage. Settlement amounts have not exceeded insurance coverage for the current year or the four prior years. Claims Liability Analysis The claims liabilities related to the above noted risks of loss that are retained are determined in accordance with the requirements of Statement of Financial Accounting Standards No. 5., which requires that a liability for claims be reported if information prior to the issuance of the financial statements indicates that it is probable that a liability has been incurred at the date of the financial statements and the amount of the loss can be reasonably estimated. The City has elected to report its estimated claim liability at the discounted net present value of future payments. For the internal service self-insurance funds, changes in the claims liability for the City from July 1, 2016 to June 30, 2018, are as follows:

CITY OF EDMOND, OKLAHOMA ANNUAL FINANCIAL REPORT June 30, 2018

Workers' Compensation Claim liability, June 30, 2016 Claims and changes in estimates Claims payments Claim liability, June 30, 2017 Claims and changes in estimates Claims payments Claim liability, June 30, 2018

1,535,000 835,272 (617,272) 1,753,000 343,037 (417,037) 1,679,000

Reconciliation to Statement of Net Position: Current portion

Health Care $

308,185 10,106,234 (9,314,218) 1,100,201 8,258,469 (8,723,781) 634,889

T ort $ 1,080,000 122,118 (138,118) $ 1,064,000 125,970 (481,970) $ 708,000

T otal $ 2,923,185 11,063,624 (10,069,608) $ 3,917,201 8,727,476 (9,622,788) $ 3,021,889

$ 1,268,167

Noncurrent portion

1,753,722

T otal

$ 3,021,889

4.C. COMMITMENTS AND CONTINGENCIES Construction Commitments At June 30, 2018, the City had awarded construction contracts totaling $230,011,722 for various City and EPWA projects and of this amount, $181,379,419 was outstanding and payable from various funds. Debt Commitment The City received an Oklahoma Water Resources Board Drinking Water State Revolving Loan in an amount not to exceed $19,000,000 on June 26, 2018. The funds are to be used for the construction of a water tower and instrument building. The city will draw the funds as construction cost are incurred, no funds had been drawn at June 30. Construction on the projects is to begin in August 2018. The note bears interest at 2.36% plus an administration fee of 0.5%. The loan will mature twenty years after the completion of the projects, but not later than September 15, 2040. Contingencies Grant Program Involvement In the normal course of operations, the City participates in various federal or state grant/loan programs from year to year. The grant/loan programs are often subject to additional audits by agents of the granting or loaning agency to ensure compliance with specific provisions of the grant or loan. Any liability or reimbursement which may arise as a result of these audits cannot be reasonably determined at this time, although it is believed the amount, if any, would not be material. Litigation The City is a party to various legal proceedings which normally occur in the course of governmental operations. The financial statements do not include accrual or provisions for loss contingencies that may result from these proceedings. State statutes provide for the levy of an ad valorem tax over a three-year period by a City Sinking Fund for the payment of any court assessed judgment rendered against the City. This statutory taxing ability is not available to the Cityâ&#x20AC;&#x2122;s public trusts (Authorities). While the outcome of the above noted proceedings cannot be predicted, due to the insurance coverage maintained by the City and the State statute relating to judgments, the City feels that any settlement or judgment not covered by insurance would not have a material adverse effect on the financial condition of the City.

CITY OF EDMOND, OKLAHOMA ANNUAL FINANCIAL REPORT June 30, 2018

4.D. NEW ACCOUNTING PRONOUNCEMENTS The GASB has issued several new accounting pronouncements, which will be effective in subsequent years. A description of the new accounting pronouncements, the fiscal year in which they are effective, and the City’s consideration of the impact of these pronouncements are described below: GASB Statement No. 83, Certain Asset Retirement Obligations, issued December 2016, will be effective for the City beginning with its fiscal year ending June 30, 2019. Under Statement No. 83, a government that has legal obligations to perform future asset retirement activities related to its tangible capital assets is required to recognize a liability and a corresponding deferred outflow of resources. The Statement identifies the circumstances that trigger the recognition of these transactions. The Statement also requires the measurement of an asset retirement obligation to be based on the best estimate of the current value of outlays expected to be incurred while the deferred outflow of resources associated with the asset retirement obligation will be measured at the amount of the corresponding liability upon initial measurement and generally recognized as an expense during the reporting periods that the asset provides service. The Statement requires disclosures including a general description of the asset retirement obligation and associated tangible capital assets; the source of the obligation to retire the assets; the methods and assumptions used to measure the liability; and other relevant information. The City has not yet determined the impact that implementation of GASB 83 will have on its net position. GASB Statement 84, Fiduciary Activities, issued January 2017, will be effective for the City for the City beginning with its fiscal year ending June 30, 2019. This Statement establishes criteria for identifying fiduciary activities of all state and local governments. The focus of the criteria generally is on (1) whether a government is controlling the assets of the fiduciary activity and (2) the beneficiaries with whom a fiduciary relationship exists. Separate criteria are included to identify fiduciary component units and postemployment benefit arrangements that are fiduciary activities. The City has not yet determined the impact that implementation of GASB 84 will have on its net position. GASB Statement 87, Leases, issued June 2017, will be effective for the City beginning with its fiscal year ending December 31, 2020. The primary objective of this Statement is to increases the usefulness of governments’ financial statements by requiring recognition of certain lease assets and liabilities for leases that previously were classified as operating leases and recognized as inflows of resources or outflows of resources based on the payment provisions of the contract. It establishes a single model for lease accounting based on the foundational principle that leases are financings the right to use an underlying asset. Under this Statement, a lessee is required to recognize a lease liability and an intangible right-to-use lease asset, and a lessor is required to recognize a lease receivable and a deferred inflow of resources, thereby enhancing the relevance and consistency of information about governments’ leasing activities. The City has not yet determined the impact that implementation of GASB 87 will have on its net position. GASB Statement 88, Certain Disclosures Related to Debt - GASB No. 87 was issued April 2018, the primary objective of this Statement is to improve the information that is disclosed in the notes to government financial statements related to debt, including direct borrowings and direct placements. It also clarifies which liabilities governments should include when disclosing information related to debt. It defines debt for purposes of disclosure in the notes to financial statements as a liability that arises from a contractual obligation to pay cash (or other assets that may be used in lieu of cash) in one or more payments to settle an amount that is fixed at the date of the contractual obligation is established. This Statement requires that additional essential information related to debt be disclosed in notes to financial statements, including unused lines of credit; assets pledged as collateral for the debt; and terms specified in debt agreements related to significant events of default with finance-related consequences, significant termination events with finance-related consequences, and significant subjective accelerations that existing and additional information be provided for direct borrowings and direct placements of debt separately from other debt. GASB Statement 90, Majority Equity Interests (An amendment of GASB Statement 14 and 61) –issued August 2018, will be effective for the City beginning with its fiscal year ending June 30, 2020. The primary objectives of this Statement are to improve the consistency and comparability of reporting a government’s majority equity interest in a legally separate organization and to improve the relevance of financial statement information for certain component units. It defines a majority equity interest and specifies that a majority equity interest in a 91

CITY OF EDMOND, OKLAHOMA ANNUAL FINANCIAL REPORT June 30, 2018

legally separate organization should be reported as an investment if a governmentâ&#x20AC;&#x2122;s holding of the equity interest meets the definition of an investment. A majority equity interest that meets the definition of an investment should be measured using the equity method, unless it is held by a special-purpose government engaged only in fiduciary activities, a fiduciary fund, or an endowment (including permanent and term endowments) or permanent fund. Those governments and funds should measure the majority equity interest at fair value. The City has not yet determined the impact that implementation of GASB 90 will have on its net position. 4.E. ECONOMIC DEVELOPMENT The City is party to multiple agreements for the purpose of developing the Interstate 35 corridor within its city limits. In fiscal 2012, the City purchased land along the corridor for $2.2 million for the development of a hotel and conference center. Subsequently, the City entered into a development agreement and committed to lend $4.8 million towards the cost of constructing the conference center. The developer is responsible for financing the cost of the related hotel and expenditures for the Conference Center that exceed $4.8 million. Rental payments to the City for the use of the underlying land are one dollar a year. The hotel will be privately owned and managed. Based on terms of the contract, the developer may purchase the land and conference center from the City for $7 million at any time. If the developer elects to not purchase the land and conference center, the City will lease the land to the developer at a market based rate, including escalators. Alternatively, the City has a contractual commitment from the developer to begin paying back the loan starting in the 10th year from commencing operations of the facility over a term of 25 years. Management of the conference center has been contracted to a third party. In return, the City will pay the manager a monthly management fee as defined in the agreement. The initial infrastructure improvements were funded by the City up to $2 million with the developer paying the cost which exceeded the $2 million limit. An additional agreement was established which constructed a storm sewer through the property. Pursuant to the agreement the City would pay the expense of the storm sewer not to exceed $1 million. In addition, the City has agreed to rebate any Hotel Tax collected from the Hotel for a period of fifteen years from the anniversary date of the Certificate of Occupancy. No taxes were abated in fiscal year 2018. Additionally, the City previously purchased additional land along the corridor in a separate transaction for $2 million for the purpose of developing a sports complex. A ground lease agreement was entered into with a tenant, who will construct the facilities. The tenant agrees to pay the City monthly rentals of $5,000 for the land for thirty years. The tenant has the right to purchase the land for $2 million at any time. Alternatively, the City has the right to require the tenant to purchase the land for $2 million on the fifteenth anniversary date of its opening. Both projects have established timelines and benchmarks for completion that must be met by the various parties, subject to extension by the City and the various parties. These terms are not within the normal and customary practices of the City, and therefore other than normal credit risks are involved, the City will classify these agreements as operating leases and no additional provisions have been recorded in the accompanying financial statements because of these agreements. Finally, in November 2017, the City/EPWA entered into an agreement with a developer for the development of an entertainment complex. The complex, set to open in December 2018, will contain a movie theater and bowling alley. Under the terms of the agreement the EPWA will provide financing assistance not to exceed $4.8 million. The payment will be from the two cents sales tax the complex generates and will be paid quarterly. The agreement terminates in December 2038. No taxes were abated in fiscal year 2018.

REQUIRED SUPPLEMENTARY INFORMATION

THIS PAGE INTENTIONALLY LEFT BLANK

CITY OF EDMOND, OKLAHOMA REQUIRED SUPPLEMENTARY INFORMATION June 30, 2018

CITY OF EDMOND, OKLAHOMA BUDGETARY COMPARISON SCHEDULE GENERAL FUND For the fiscal year ended June 30, 2018

ORIGINAL BUDGET

FINAL BUDGET

VARIANCE WITH FINAL BUDGET POSITIVE (NEGATIVE)

ACTUAL

REVENUES TAXES: Sales tax

34,413,521

34,680,851

267,330

Use tax

4,800,000

6,920,359

Franchise

2,559,617

2,173,068

(386,549)

44,963

(44,963)

41,818,101

43,774,278

1,956,177

5,000

Hotel/Motel tax Liquor tax

Total Taxes

2,120,359 -

INTERGOVERNMENTAL: Grant revenues

Alcoholic beverage

138,875

138,803

(72)

Cigarette tax

764,954

732,201

(32,753)

Vehicle tax

648,427

633,917

(14,510)

Gasoline tax

160,111

169,888

1,712,367

1,679,809

Total Intergovernmental

9,777

(32,558)

CHARGES FOR SERVICES: Sw imming pool fees Recreational program fees Right-of-Way fees

62,822

62,390

25 (432)

4,989,887

5,315,899

326,012

Cemetery fees

162,290

217,290

55,000

Curb cut fees

10,196

11,010

814

Animal w elfare fees

52,818

52,189

(629)

Filing fees

64,401

81,659

17,258

911 fees

47,428

288,151

240,723

5,973

20,682

14,709

5,395,815

6,049,295

653,480

FINES AND FORFEITURES

2,217,195

1,628,740

(588,455)

LICENSES AND PERMITS

1,598,279

1,446,443

(151,836)

70,000

65,349

(4,651)

230,291

353,947

123,656

53,042,048

54,997,861

1,955,813

21,846,651

18,488,679

(3,357,972)

21,846,651

18,488,679

(3,357,972)

Miscellaneous charges

Total Charges for Services

INVESTMENT INCOME

MISCELLANEOUS

TOTAL REVENUES

OTHER FINANCING SOURCES: Transfers from other funds Total Other Financing Sources TOTAL REVENUES AND OTHER FINANCING SOURCES

74,888,699

73,486,540

(1,402,159) (Continued)

CITY OF EDMOND, OKLAHOMA REQUIRED SUPPLEMENTARY INFORMATION June 30, 2018

CITY OF EDMOND, OKLAHOMA BUDGETARY COMPARISON SCHEDULE GENERAL FUND For the fiscal year ended June 30, 2018

ORIGINAL BUDGET

FINAL BUDGET

VARIANCE WITH FINAL BUDGET POSITIVE (NEGATIVE)

ACTUAL

EXPENDITURES General Governm ent: General: Other services and charges

Total General

74,500

210,150

124,534

210,150

124,534

85,616

City Council: Personal services

24,543

24,545

Materials and supplies

13,650

3,432

10,218

138,250

61,137

77,113

176,443

89,114

87,329

697,797

679,478

18,319

18,680

14,781

3,899

181,835

101,763

80,072

898,312

796,022

102,290

200,000

332,945

90,637

242,308

3,392

Other services and charges Total City Council

(2)

Municipal Court: Personal services Materials and supplies Other services and charges

Total Judicial

Edmond-Guthrie Regional Airport Other services and charges

Cemetery: Personal services

156,144

152,752

Materials and supplies

12,825

9,615

3,210

Other services and charges

43,510

27,964

15,546

212,479

190,331

22,148

621,220

606,049

15,171

9,350

6,970

2,380

Other services and charges

30,350

18,177

12,173

Total Planning and Zoning

660,920

631,196

29,724

88,209

77,857

10,352

6,385

1,376

5,009

44,575

19,974

24,601

139,169

99,207

39,962

2,361,823

2,630,418

2,021,041

609,377

762,883

751,331

11,552

97,100

65,776

31,324

402,960

392,460

298,606

93,854

94,000

104,500

9,950

94,550

Total Community Image

1,356,943

1,125,663

231,280

TOTAL ECONOMIC DEVELOPMENT

1,356,943

1,125,663

Total Cemetery Planning and Zoning: Personal services Materials and supplies

Dow ntow n Community Center: Personal services Materials and supplies Other services and charges Dow ntow n Community Center TOTAL GENERAL GOVERNMENT ECONOMIC DEVELOPMENT: Community Image: Personal services Materials and supplies Other services and charges Capital outlay

231,280 (Continued)

CITY OF EDMOND, OKLAHOMA REQUIRED SUPPLEMENTARY INFORMATION June 30, 2018

CITY OF EDMOND, OKLAHOMA BUDGETARY COMPARISON SCHEDULE GENERAL FUND For the fiscal year ended June 30, 2018

ORIGINAL BUDGET

FINAL BUDGET

VARIANCE WITH FINAL BUDGET POSITIVE (NEGATIVE)

ACTUAL

PUBLIC SAFETY: Emergency Management: 169,236

169,236

169,871

Materials and supplies

Personal services

22,868

10,955

11,913

(635)

Other services and charges

61,558

42,707

18,851

253,662

223,533

30,129

26,260

Capital outlay

Total Emergency Management Building Department:

1,263,133

1,264,033

1,237,773

Materials and supplies

Personal services

54,851

36,841

18,010

Other services and charges

83,200

60,135

23,065

Total Building Department

1,401,184

1,402,084

1,334,749

67,335

TOTAL PUBLIC SAFETY

1,654,846

1,655,746

1,558,282

97,464

975,000

446,021

528,979

975,000

446,021

528,979

Other services and charges

690,745

692,851

(2,106)

TOTAL OUTSIDE AGENCIES

690,745

692,851

(2,106)

1,121,306

976,809

174,255

209,255

149,512

59,743

Other services and charges

1,347,750

1,312,750

934,248

378,502

Total Parks and Recreation

2,643,311

2,060,569

582,742

STREETS AND HIGHWAYS: Capital outlay TOTAL STREETS AND HIGHWAYS OUTSIDE AGENCIES:

PARKS AND RECREATION: Parks and Recreation: Personal services Material and supplies

144,497

Senior Center: 345,381

345,381

331,717

13,664

Materials and supplies

Personal services

16,609

12,109

4,500

Other services and charges

65,700

59,067

6,633

427,690

402,893

24,797

Personal services

6,459

4,419

2,040

Materials and supplies

6,211

1,866

4,345

Other services and charges

32,775

19,999

12,776

Total Festival Marketplace

45,445

26,284

19,161

Total Senior Citizens Festival Marketplace:

Historical Society: Materials and supplies

750

Other services and charges

263,250

260,069

3,181

Total Historical Society

264,000

260,069

3,931

3,380,446

2,749,815

630,631

10,419,803

10,689,298

8,593,673

2,095,625

Transfers to other funds

(64,882,423)

(64,932,423)

(61,743,336)

(3,189,087)

Total Other Financing Uses

(64,882,423)

(64,932,423)

(61,743,336)

(3,189,087)

75,302,226

75,621,721

70,337,009

5,284,712

TOTAL PARKS AND RECREATION TOTAL EXPENDITURES

750

OTHER FINANCING SOURCES (USES)

TOTAL EXPENDITURES AND OTHER FINANCING USES REVENUES AND OTHER SOURCES OVER (UNDER) EXPENDITURES AND OTHER USES

(413,527)

(733,022)

3,149,531

3,882,553

CITY OF EDMOND, OKLAHOMA REQUIRED SUPPLEMENTARY INFORMATION June 30, 2018

City of Edmond, Oklahoma Budgetary Comparison Schedule Major Special Revenue Fund - Fire Public Safety Limited Tax Fund For the year ended June 30, 2018

Fire Public Safety Limited Tax Fund

Original Budget REVENUES Taxes Intergovernmental Charges for services Investment income Miscellaneous Total revenues

4,301,112 65,000 6,000 4,372,112

Final Budget

4,301,112 65,000 6,000 4,372,112

Actual

4,306,377 3,009 12,000 146,989 56,410 4,524,785

Variance with Final Budget Positive (Negative)

5,265 3,009 12,000 81,989 50,410 152,673

EXPENDITURES Current: Public Safety Personal services Materials and supplies Other services and charges Capital outlay Total Expenditures Excess (deficiency) of revenues over expenditures

16,516,715 868,250 4,446,201 66,000 21,897,166

16,516,715 885,705 4,526,998 6,756,058 28,685,476

16,322,237 454,890 3,922,631 633,620 21,333,378

194,478 430,815 604,367 6,122,438 7,352,098

(17,525,054)

(24,313,364)

(16,808,593)

7,504,771

OTHER FINANCING SOURCES (USES) Transfers in Total other financing sources and uses

16,034,763 16,034,763

17,534,763 17,534,763

17,723,760 17,723,760

Net change in fund balance

(1,490,291)

(6,778,601)

915,167

188,997 188,997 $

7,693,768

CITY OF EDMOND, OKLAHOMA REQUIRED SUPPLEMENTARY INFORMATION June 30, 2018

City of Edmond, Oklahoma Budgetary Comparison Schedule Major Special Revenue Fund -Police Public Safety Limited Tax Fund For the year ended June 30, 2018

Police Public Safety Limited Tax Fund

Original Budget REVENUES Taxes Intergovernmental Charges for services Investment income Miscellaneous Total revenues

2,153,716 150,000 3,000 35,000 25,000 2,366,716

Final Budget

2,153,716 220,079 3,000 35,000 25,000 2,436,795

Actual

2,167,675 137,007 72,239 34,741 2,411,662

Variance with Final Budget Positive (Negative)

13,959 (83,072) (3,000) 37,239 9,741 (25,133)

EXPENDITURES Current: Public Safety Personal services Materials and supplies Other services and charges Capital outlay Total Expenditures Excess (deficiency) of revenues over expenditures

18,369,316 889,181 5,058,264 80,000 24,396,761

18,464,116 911,869 4,998,833 205,573 24,580,391

17,391,581 579,143 4,773,532 46,975 22,791,231

1,072,535 332,726 225,301 158,598 1,789,160

(22,030,045)

(22,143,596)

(20,379,569)

1,764,027

OTHER FINANCING SOURCES (USES) Transfers in Total other financing sources and uses

19,669,310 19,669,310

19,901,146 19,901,146

Net change in fund balances

(2,360,735)

(2,474,286)

(478,423)

231,836 231,836 $

1,995,863

CITY OF EDMOND, OKLAHOMA REQUIRED SUPPLEMENTARY INFORMATION June 30, 2018

NOTES TO BUDGETARY COMPARISON SCHEDULES BUDGETARY ACCOUNTING AND CONTROL Budget Law The City prepares its annual operating budget under the provisions of the Oklahoma Municipal Budget Act of 1979 (the "Budget Act"). In accordance with those provisions, the following process is used to adopt the annual budget: a.

Prior to June 1, the City Manager submits to the City Council a proposed operating budget for the fiscal year commencing the following July 1. The operating budget includes proposed expenditures and the means of financing them.

Public hearings are conducted to obtain taxpayer comments. Public hearings are held no later than 15 days prior to the beginning of the budget year.

Subsequent to the public hearings but no later than seven days prior to July 1, the budget is legally enacted through the passage of a resolution by the City Council.

Subsequent to City Council enactment, the adopted budget is filed with the office of the State Auditor and Inspector.

The legal level of control at which expenditures may not legally exceed appropriations is the department level within a fund. The City Manager may only transfer appropriations within expenditure categories within a department without City council approval. Transfers between expenditure categories of a department or fund and budget supplements made during the year are recommended by the City Manager and must be approved by the City Council. Supplemental appropriations must also be filed with the Office of State Auditor and Inspector. Budgetary Accounting The City prepares its budgets for all governmental fund types on a budgetary basis of accounting which differs from the modified accrual basis of accounting in the following areas: Grants that do not result in cash flow and the related expenditures are not budgeted. Internal service fund charges for services are recorded as transfers in the budgetary basis.

CITY OF EDMOND, OKLAHOMA REQUIRED SUPPLEMENTARY INFORMATION June 30, 2018

The following is a reconciliation of those differences: City of Edmond, Oklahoma Notes to Budgetary Comparison Schedule Reconciliation of Budgetary Basis to Modified Accrual Basis For the year ended June 30, 2018

General Fund: Total Revenues Transfers In Total Revenues and Other Financing Sources

Per Statement of Revenues, Expenditures, and Changes in Fund Balance

Internal Service Fund Transfers

Non-Cash Grant Activity

Fund Combined for Reporting Purposes

Per Budgetary Comparison Schedule

Total Expenditures Transfers Out Total Expenditures and Other Financing Uses Net Changes in Fund Balance

Fire Public Safety Limited Tax Fund: Total Revenues Transfers In Total Revenues and Other Financing Sources Total Expenditures Total Expenditures and Other Financing Uses Net Changes in Fund Balance

Police Public Safety Limited Tax Fund: Total Revenues Transfers In Total Revenues and Other Financing Sources Total Expenditures Total Expenditures and Other Financing Uses Net Changes in Fund Balance

55,019,318 18,538,679 73,557,997 19,247,937 51,036,467 70,284,404

(10,705,869) 10,706,869 1,000

3,273,593

8,059,369 17,723,760 25,783,129

24,844,894 24,844,894 938,235

3,814,902 19,901,146 23,716,048 24,165,338 24,165,338 (449,290)

(1,000)

51,714 51,714

(109) (109)

(51,714)

(3,534,584) (3,534,584)

(3,511,516) (3,511,516) (23,068)

(1,403,240) (1,403,240) (1,374,107) (1,374,107) (29,133)

(21,457) (50,000) (71,457)

(71,348)

54,997,861 18,488,679 73,486,540 8,593,673 61,743,336 70,337,009

3,149,531

4,524,785 17,723,760 22,248,545

21,333,378 21,333,378 915,167

2,411,662 19,901,146 22,312,808 22,791,231 22,791,231 (478,423)

All governmental funds of the city are required to have annual budgets. The City utilized encumbrances accounting under which purchase orders, contracts and other commitments for the expenditure funds are recorded in order to reserve a portion of the applicable appropriation. Encumbered appropriations at year end are lapsed and encumbrances to be honored are re-appropriated in the following budget year.

CITY OF EDMOND, OKLAHOMA REQUIRED SUPPLEMENTARY INFORMATION June 30, 2018

Schedules of Required Supplementary Information SCHEDULE OF THE CITY OF EDMOND'S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY OKLAHOMA POLICE PENSION & RETIREMENT SYSTEM Last 10 Fiscal Years* For the year June 30, 2015

2016

2017

2018

City's proportion of the net pension liability

3.0197%

3.1355%

3.4051%

3.1811%

City's proportionate share of the net pension liability (asset)

$ (1,016,693)

127,846

$ 5,214,739

267,765

City's covered payroll

$ 8,831,635

$ 9,974,924

10,264,440

8,445,211

City's proportionate share of the net pension liability (asset) as a percentage of its covered payroll

(12.04%)

1.45%

52.28%

2.61%

Plan fiduciary net position as a percentage of the total pension liability (asset)

101.53%

99.82%

93.50%

99.68%

Notes to Schedule: Only four fiscal years are presented because 10-year data is not yet available.

SCHEDULE OF CITY CONTRIBUTIONS OKLAHOMA POLICE PENSION & RETIREMENT SYSTEM Last 10 Fiscal Years *

2015 Statutorily required contribution

Contributions in relation to the statutorily required contribution

1,152,006

Contribution deficiency (excess)

City's covered payroll

Contributions as a percentage of covered payroll

2016

8,831,635

1,305,813

1,305,813 $ $

13%

Notes to Schedule: Only four fiscal years are presented because 10-year data is not yet available.

100

2017

9,974,924

13%

2018

1,349,366

1,349,366 $ $

10,264,440

13%

1,380,245

1,380,245 $ $

10,598,091

13%

CITY OF EDMOND, OKLAHOMA REQUIRED SUPPLEMENTARY INFORMATION June 30, 2018

Schedules of Required Supplementary Information SCHEDULE OF THE CITY OF EDMOND'S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY OKLAHOMA FIREFIGHTERS PENSION & RETIREMENT SYSTEM Last 10 Fiscal Years* For the year June 30,

City's proportion of the net pension liability

2015

2016

2017

2018

3.5619241%

3.566186%

3.764069%

3.774118%

City's proportionate share of the net pension liability

36,628,970

37,851,799

45,986,170

47,467,983

City's covered payroll

9,729,108

9,743,764

10,528,981

10,727,533

City's proportionate share of the net pension liability as a percentage of its covered payroll

376.49%

388.47%

436.76%

442.49%

Plan fiduciary net position as a percentage of the total pension liability

68.12%

68.27%

64.87%

66.61%

Notes to Schedule: Only four fiscal years are presented because 10-year data is not yet available.

SCHEDULE OF CITY CONTRIBUTIONS OKLAHOMA FIREFIGHTERS PENSION & RETIREMENT SYSTEM Last 10 Fiscal Years

2015 Statutorily required contribution

Contributions in relation to the statutorily required contribution

2016

1,364,114

Contribution deficiency (excess)

City's covered payroll

9,743,764

Contributions as a percentage of covered payroll

1,474,042

1,474,042 $ $

14%

Notes to Schedule: Only four fiscal years are presented because 10-year data is not yet available.

101

2017

10,528,981

14%

2018

1,501,841

1,501,841 $ $

10,727,533

14%

1,570,090

1,570,090 $ $

11,215,029

14%

CITY OF EDMOND, OKLAHOMA REQUIRED SUPPLEMENTARY INFORMATION June 30, 2018

SCHEDULE OF CHANGES IN THE CITY'S NET PENSION LIABILITY AND RELATED RATIOS SINGLE-EMPLOYER DEFINED BENEFIT PENSION PLAN Last 10 Fiscal Years* For the year June 30. 2015 Total pension liability Service cost Interest Changes of benefit terms Difference between expected and actual experience Benefit payments, including refunds of member contributions Net change in total pension liability Total pension liability-beginning Total pension liability-ending (a) Plan fiduciary net position Contributions-employer Contributions-member Net investment income Benefit payments, including refunds of member contributions Administrative expense Net change in plan fiduciary net position Plan fiduciary net position-beginning Plan fiduciary net position-ending (b) City's net pension liability - ending (a)-(b)

2016

2,465,096 4,803,663 1,229,173 700,579 (2,164,180) 7,034,331 64,855,477 71,889,808

1,965,953 1,264,678 8,331,083 (2,164,180) (38,377) 9,359,157 56,730,705 66,089,862

5,799,946

Plan fiduciary net position as a percentage of the total pension liability

2,108,839 1,338,561 (2,627,009) (3,135,897) (30,748) (2,346,254) 66,089,862 63,743,608

13,407,344

91.93%

Covered payroll

City's net pension liability as a percentage of covered employee payroll

23,801,107 24.37%

Notes to Schedule: Only four fiscal years are presented because 10-year data is not yet available.

102

2,619,414 5,193,616 584,011 (3,135,897) 5,261,144 71,889,808 77,150,952

2017

25,382,314 52.82%

2,909,090 5,983,564 87,006 (3,163,789) 5,815,871 82,657,035 88,472,906

2,292,339 1,400,380 (1,060,450) (3,610,999) (27,211) (1,005,941) 63,743,608 62,737,667

2,465,138 1,458,953 6,935,917 (3,163,789) (12,050) 7,684,169 62,737,667 70,421,836

19,919,368

18,051,070

82.62% $

2,822,532 5,565,362 729,188 (3,610,999) 5,506,083 77,150,952 82,657,035

2018

75.90% $

26,613,450 74.85%

79.60% $

27,957,092 64.57%

CITY OF EDMOND, OKLAHOMA REQUIRED SUPPLEMENTARY INFORMATION June 30, 2018

SCHEDULE OF EMPLOYER CONTRIBUTIONS SINGLE-EMPLOYER DEFINED BENEFIT PENSION PLAN Last 10 Fiscal Years For the year June 30. 2014

2015

2016

2017

2018

Actuarially determined contribution Contributions in relation to the actuarially determined contribution Contribution deficiency (excess)

2,004,213 1,965,953 38,260

2,569,913 2,441,134 128,779

2,397,984 2,292,339 105,645

2,195,239 2,108,839 86,400

Covered payroll

24,089,104

25,496,393

26,673,905

27,194,847

Contributions as a percentage of covered payroll

8.32%

8.61%

8.99%

2,672,395 2,738,281 (65,886)

28,160,118

9.45%

9.49%

Notes to Schedule: Valuation date: Actuarially determined contribution rates are calculated as of June 30, one year prior to the end of the fiscal year in which contributions are reported. Methods and assumptions used to determine contribution rates: Actuarial cost method

Entry Age Normal

Amortization method

Level dollar, rolling

Remaining amortization period

30 years rolling

Asset valuation method

5-year smoothed market (20% annual write up of cumulative gain or loss relative to assumed return)

Inflation

2.5%

Salary Increases

5.0% average including inflation plus age-scale

Investment rate of return

7.25%, net of pension plan investment expense, including inflation

Retirement age

Plan experience as last measured in 2011

Mortality

Beginning with the 2016 actuarial valuation, assumed life expectancies utilized the RP-2000 Projected Mortality Table. (Continued)

SCHEDULE OF EMPLOYER CONTRIBUTIONS (Continued) SINGLE-EMPLOYER DEFINED BENEFIT PENSION PLAN Last 10 Fiscal Years For the year June 30. 2009

1,879,700 1,866,908 12,792

1,803,185 1,811,247 (8,062)

1,803,629 1,886,892 (83,263)

1,846,314 1,822,720 23,594

Covered payroll

21,223,530

22,521,201

21,588,603

22,630,229

22,598,708

103

8.35%

2013

1,334,008 1,271,783 62,225

8.35%

2012

6.29%

2011

Actuarially determined contribution Contributions in relation to the actuarially determined contribution Contribution deficiency (excess)

Contributions as a percentage of covered payroll

2010

7.97%

8.17%

CITY OF EDMOND, OKLAHOMA REQUIRED SUPPLEMENTARY INFORMATION June 30, 2018

PENSION FUND - SCHEDULE OF INVESTMENT RETURNS Last 10 Fiscal Years * Year Ended June 30. 2015

Annual money-weighted rate of return, net of investment expense

Year Ended June 30. 2016

Year Ended June 30. 2017

-3.97%

-1.66%

14.55%

Notes to Schedule: Only four fiscal years are presented because 10-year data is not yet available.

104

Year Ended June 30. 2018

5.42%

CITY OF EDMOND, OKLAHOMA REQUIRED SUPPLEMENTARY INFORMATION June 30, 2018

Schedule of Changes Total Net OPEB Liability and Related Ratios Postemployment Health Insurance Implcit Rate Subsidy Plan

2018 Total OPEB Liability Service cost Interest Changes in assumptions Experience Gain/(Loss) Net change in total OPEB liability

347,426 166,825 (365,447) (187,469) (38,665)

Balances at Beginning of Year Balances End of Year

6,136,680 6,098,015

Covered employee payroll

39,000,000

Total OPEB liability as a percentage of coveredemployee payroll

15.64%

Notes to Schedule: Only the current fiscal year is presented because 10-year data is not yet available

105

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106

OTHER SUPPLEMENTARY INFORMATION

THIS PAGE INTENTIONALLY LEFT BLANK

CITY OF EDMOND, OKLAHOMA OTHER SUPPLEMENTARY INFORMATION June 30, 2018

GENERAL FUND Under GASB Statement 54 certain funds no longer met the definition to be presented as Special Revenue Funds. Those funds became sub-funds of the General Fund for reporting purpose. For reporting purposes, the General Fund contains the following sub-funds: GENERAL FUND - The primary operating fund of the City. The General Fund is reported as a major governmental fund. It is used to account for all activities except those legally or administratively required to be accounted for in other funds. REAL PROPERTY SUB-FUND - The Real Property Sub-Fund has been established to accumulate resources for future real property acquisitions of the City. Financing is provided by transfers of investment earnings from the Hospital Sale Trust Fund. EDMOND ELECTRIC ECONOMIC DEVELOPMENT S U B - FUND – The Economic Development S u b Fund has been established to stimulate the growth of Edmond's economy by offering services that facilitate the growth and expansion of new and existing businesses and generating opportunities to increase the sales tax base of the Cityof Edmond. PARK SPECIAL EVENTS SUB-FUND – The Park Special Events Sub-Fund has been established to account for donations and fees related to culture and recreation events.

107

CITY OF EDMOND, OKLAHOMA OTHER SUPPLEMENTARY INFORMATION June 30, 2018

City of Edmond, Oklahoma Balance Sheet General Fund Accounts June 30, 2018

General Fund ASSETS Cash and cash equivalents Investments Due from other funds Due from other governments Accrued interest receivable Other receivables Total assets

LIABILITIES AND FUND BALANCES Liabilities: Accounts payable Unearned revenue Amounts held in escrow Total liabilities

DEFERRED INFLOWS OF RESOURCES Unavailable revenue Total deferred inflows of resources Fund balances: Restricted Assigned Unassigned Total fund balances Total liabilities, deferred inflows of resources and fund balances

Edmond Electric Economic Development

Real Property Fund

436,711 4,257,211 1,177,727 6,411,730 17,455 1,063,432 13,364,266

542,976 111,273 336,493 990,742

13,263 138,005 449 151,717

Park Special Events

64,467 670,800 2,185 737,452

Total General Fund

6,522 67,864 221 74,607

520,963 5,133,880 1,177,727 6,411,730 20,310 1,063,432 14,328,042

542,976 111,273 336,493 990,742

519,121 519,121

319 319

1,551 1,551

157 157

521,148 521,148

3,364,662 1,758,582 6,731,159 11,854,403 13,364,266

151,398 151,398 151,717

735,901 735,901 737,452

74,450 74,450 74,607

3,364,662 2,720,331 6,731,159 12,816,152 14,328,042

108

CITY OF EDMOND, OKLAHOMA OTHER SUPPLEMENTARY INFORMATION June 30, 2018

City of Edmond, Oklahoma Statement of Revenues, Expenditures and Changes in Fund Balances General Fund Accounts For the Year Ended June 30, 2018

Real Property Fund

General Fund REVENUES Sales and use taxes Franchise and public service taxes Intergovernmental Charges for services Fines and forfeitures Licenses and permits Investment income Miscellaneous Total revenues

EXPENDITURES Current: General government Public safety Health and sanitation Culture, parks and recreation Economic development Streets and highways Capital Outlay Total Expenditures Excess (deficiency) of revenues over expenditures OTHER FINANCING SOURCES (USES) Transfers in Transfers out Total other financing sources and uses Net change in fund balances Fund balances - beginning Fund balances - ending

41,601,211 2,173,068 1,819,583 6,049,295 1,628,740 1,446,443 65,349 214,172 54,997,861

Park Special Events

Total General Fund

6,498 6,498

4,954 657 7,881 13,492

41,601,211 2,173,068 1,819,583 6,054,249 1,628,740 1,446,443 73,971 222,053 55,019,318

5,545,027 2,987,164 692,581 4,078,784 5,488,301 455,971 19,247,828

18 18

83 83

8 8

5,545,128 2,987,164 692,581 4,078,792 5,488,301 455,971 19,247,937

35,750,033

1,449

6,415

13,484

35,771,381

18,488,679 (51,036,467) (32,547,788) 3,202,245

1,449

50,000 50,000 56,415

13,484

18,538,679 (51,036,467) (32,497,788) 3,273,593

149,949

679,486

60,966

9,542,559

8,652,158 $

1,467 1,467

Edmond Electric Economic Development

11,854,403

151,398

109

735,901

74,450

12,816,152

CITY OF EDMOND, OKLAHOMA OTHER SUPPLEMENTARY INFORMATION June 30, 2018

City of Edmond, Oklahoma Schedule of Revenues, Expenditures and Changes in Fund Balance-Budgetary Basis Budget and Actual - General Funds Combined For the year ended June 30, 2018

EDMOND ELECTRIC ECONOMIC DEVELOPMENT

Budget

PARKS SPECIAL EVENTS FUND

Variance Positive (Negative)

Actual

Budget

Variance Positive (Negative)

Actual

Revenues: Charges for services

Investment income Miscellaneous Total Revenues

7,500

4,954

(2,546)

6,000

6,498

498

657

5,000

7,881

2,881

6,000

6,498

498

12,500

13,492

992

Expenditures: General Government: Personal services

Materials and supplies Other services and charges

500

417

Capital outlay

Debt service

Total General Government

500

417

Parks and Recreation: Personal services Materials and supplies Other service and charges Capital outlay Total Parks and Recreation

Total Expenditures Revenues over (under) expenditures

3,361

5,750

5,742

9,111

9,103

500

417

9,111

9,103

5,500

6,415

915

3,389

13,484

10,095

Other financing sources (uses): Transfers from other funds

total of other financing resources Revenues and other sources over (under) expenditures and other uses Fund Balance-beginning of year Fund Balance -end of year

50,000

55,500

56,415

915

3,389

13,484

10,095

679,486

60,966

734,986

735,901

110

915

64,355

74,450

10,095

CITY OF EDMOND, OKLAHOMA OTHER SUPPLEMENTARY INFORMATION June 30, 2018

City of Edmond, Oklahoma Schedule of Revenues, Expenditures and Changes in Fund Balance-Budgetary Basis Budget and Actual - General Funds Combined For the year ended June 30, 2018 (Continued)

REAL PROPERTY FUND

Budget

Variance Positive (Negative)

Actual

Revenues: Charges for services

Investment income Miscellaneous Total Revenues

1,200

1,467

267

1,200

1,467

267

Expenditures: General Government: Personal services

Materials and supplies Other services and charges

1,500

1,482

Capital outlay

Debt service Total General Government

1,500

1,482

Other service and charges

Capital outlay

Parks and Recreation: Personal services Materials and supplies

Total Parks and Recreation

Total Expenditures Revenues over (under) expenditures

1,500

1,482

1,449

1,749

(300)

Other financing sources (uses): Transfers from other funds

total of other financing resources Revenues and other sources over (under) expenditures and other uses

1,449

1,749

149,949

(300) 149,949

Fund Balance-beginning of year Fund Balance -end of year

111

149,649

151,398

1,749

CITY OF EDMOND, OKLAHOMA OTHER SUPPLEMENTARY INFORMATION June 30, 2018

NONMAJOR GOVERNMENTAL FUNDS Special Revenue Funds Special Revenue Funds are used to account for the proceeds of specific revenue sources that are normally restricted to expenditures for specified purposes. CDBG ENTITLEMENT - This fund was established by the City to account for the grants received from the Federal government through the Oklahoma Department of Commerce under various Community Development Block Grant programs. ASSET FORFEITURE FUND - The Asset Forfeiture Fund has been established to account for assets that are equitably distributed by the Drug Enforcement Administration to state and local agencies that directly participate in the law enforcement effort that leads to the seizure of assets used in illegal drug activities. The assets received must be for only law enforcement purposes such as enhancements to future investigations, law enforcement training, equipment, operations and overtime for enforcement activities. SENIOR CITIZENS FUND - This fund was established to account for dedicated revenues received for the benefit of senior citizens, including grants, donations and other resources. The expenditures of the fund are administratively restricted for the benefit of senior citizens' activities or programs. CONVENTION & VISITORS BUREAU – The Convention & Visitors Bureau Fund accounts for the Hotel/Motel tax revenues that the City collects. It is restricted for tourism, conventions, and visitors’ bureau. HOSPITAL SALE TRUST FUND –The Hospital Sale Trust Fund was established in 1981 to account for the proceeds of approximately $7,200,000 received from the sale of the Edmond Memorial Hospital to the Hospital Corporation of America. Use of the trust principal must first be approved by a vote of the citizens of the City. Investment earnings from the trust may be appropriated without voter approval but are restricted to capital improvements. AMBULATORY SERVICE FUND – The Ambulatory Service Fund provides funding of the City of Edmond’s Ambulance Services through the regional Emergency Medical Services Authority (EMSA). It primarily covers those citizens who have elected to participate in the TotalCare Program which is a monthly fee of $3.00 paid through utility billing which began in FY 09-10. (continued)

112

CITY OF EDMOND, OKLAHOMA OTHER SUPPLEMENTARY INFORMATION June 30, 2018

Capital Project Funds The Capital Project Funds have been established to account for all major capital improvements, except those accounted for in proprietary type funds, which are financed by the City's sales tax revenue bond issues, General Fund transfers, and other designated sources. CEMETERY PERPETUAL CARE FUND - The Cemetery Perpetual Care Fund has been established to account for 20% of all monies received from the sale of lots and interments as established by City Council. Monies received must be used for making capital improvements. CEMETERY CARE FUND - The Cemetery Care Fund has been established to account for 12.5% of all monies received from the sale of lots and interments in accordance with state law. Monies received must be used to purchase lands for cemeteries and for making capital improvements. Interest earned may be used for improving, caring for, and embellishing cemetery property. PARK SALES TAX FUND - The Park Sales Tax Fund has been established to account for operations and facility improvement costs of the City’s park and recreation system. Financing is provided by a permanent one-eighth cent sales tax approved by the voters in September 1992 and expanded in 2000 to include all city parks. ART IN PUBLIC PLACES FUND – The Art in Public Places Fund has been established to account for art acquisitions by the City. Financing is provided by donations, investment earnings and other City funds as determined by the City Council. CAPITAL IMPROVEMENT FUND - The Capital Improvement Fund was established to account for major capital improvements that are financed by the General Fund and other designated sources which are outlined in the City's five year Capital Improvements program. The fund is funded primarily from General Fund transfers. ROADWAY IMPROVEMENT FUND - The Roadway Improvement Fund has been established to account for street construction and improvement projects as approved by the voters on May 10, 1994. The improvements are financed by a temporary seven-eighths cent sales tax which ended in FY1995. The remainder of funds are planned to be expended on street improvements. 1996 CAPITAL IMPROVEMENT TAX FUND - The 1996 Capital Improvements Tax Fund has been established to account for various capital improvements as recommended by the Citizens Capital Improvements Planning Committee and approved by the voters on August 27, 1996. The improvements are being financed by a three-fourths cent sales tax for a five year period beginning November 1, 1996. Funded from the tax are street improvements, radio communication system and computer aided dispatch, water treatment plant expansion, library expansion, senior citizens center, and a city wide sidewalk project. 2012 PUBLIC SAFETY CENTER TAX FUND – used to account for the proceeds of a five year half cent voter-restricted limited purpose sales tax to be used for the development of the City’s Public Safety Center and other capital project as approved by the voters. 2017 CAPITAL IMPROVEMENT FUND - The 2017 Capital Improvements Fund has been established to account for various capital improvements as recommended by the Capital Improvement Project Advisory Board. Their recommendations are forwarded to the City Council for their approval. This fund replaces the 2012 Public Safety Center-Capital Improvements Tax Fund, established to account for the capital construction cost of a new Public Safety Center and other capital improvements. The improvements are being financed by a 10 year one-half cent sales tax approved by voters on April 2016 and commenced on April 1, 2017 and will run for ten years, unless extended by the voters. 113

CITY OF EDMOND, OKLAHOMA OTHER SUPPLEMENTARY INFORMATION June 30, 2018

City of Edmond, Oklahoma Combining Balance Sheet Nonmajor Governmental Funds June 30, 2018

CAPTIAL PROJECT FUND

SPECIAL REVENUE FUNDS CDBG Entitlement Fund ASSETS Cash and cash equivalents Investments Due from other governments Accrued interest receivable Other receivable Total assets

LIABILITIES AND FUND BALANCES Liabilities: Accounts payable Due to other funds Total liabilities

DEFERRED INFLOWS OF RESOURCES Unavailable revenue Total deferred inflows of resources

Fund balances: Restricted Committed Assigned Unassigned (deficit) Total fund balances Total liabilities, deferred inflows of resources and fund balances

Asset Forfeiture Fund

45,568 45,568

3,694 86,538 90,232

58,760 611,412 1,990 672,162

Senior Center Fund $

23,512 244,650 796 268,958

2,809 2,809

Convention and Visitor's Bureau Fund $

17,935 186,617 608 59,188 264,348

13,711 13,711

Hospital Sale Trust Fund $

Ambulatory Service Fund

8,294,542 3,303 8,297,845

1,011,000 1,011,000

44,616 464,238 1,511 44,880 555,245

2,248 2,248

Cemetery Perpetual Care $

1,633 16,997 55 18,685

1,415 1,415

565 565

432 432

1,073 1,073

39 39

(44,664) (44,664)

629,201 41,546 670,747

248,108 3,175 14,301 265,584

230,422 19,783 250,205

7,286,845 7,286,845

530,759 21,165 551,924

18,646 18,646

45,568

672,162

114

268,958

264,348

8,297,845

555,245

18,685 (Continued)

CITY OF EDMOND, OKLAHOMA OTHER SUPPLEMENTARY INFORMATION June 30, 2018

City of Edmond, Oklahoma Combining Balance Sheet Nonmajor Governmental Funds June 30, 2018

CAPITAL PROJECT FUNDS

ASSETS Cash and cash equivalents Investments Due from other governments Accrued interest receivable Other receivable Total assets

LIABILITIES AND FUND BALANCES Liabilities: Accounts payable Due to other funds Total liabilities

Cemetery Care

Park Sales Tax Fund

DEFERRED INFLOWS OF RESOURCES Unavailable revenue Total deferred inflows of resources

Fund balances: Restricted Committed Assigned Unassigned (deficit) Total fund balances Total liabilities, deferred inflows of resources and fund balances

9,903 103,040 336 113,279

103,057 1,072,342 329,876 3,493 1,508,768

33,376 33,376

Art in Public Places Fund $

7,527 78,320 256 144 86,247

2,665 5 2,670

Capital Improvement Fund $

100,254 1,043,178 3,397 1,146,829

1,403 1,403

Roadway Improvement Fund $

1996 CIP Tax Fund

980 10,202 33 11,215

5,340 55,563 181 61,084

2,607 2,607

238 238

2,481 2,481

182 182

2,415 2,415

24 24

128 128

107,329 5,712 113,041

1,055,498 417,413 1,472,911

74,808 8,587 83,395

1,143,011 1,143,011

10,199 992 11,191

11,173 47,176 58,349

113,279

1,508,768

86,247

115

1,146,829

11,215

61,084

2012 Public Safety Center Tax Fund $

2017 Capital Improvement Fund -

3,303 80,189 83,492

(83,492) (83,492) -

158,081 158,081

19,345 19,345

803,538 8,361,063 1,319,502 27,227 10,511,330

Total Governmental Funds

10,511,330

221,649 1,179,980 1,401,629

28,337 28,337

10,333,904 10,333,904 $

9,471,597 12,247,622 1,694,946 39,883 107,515 23,561,563

20,536,892 3,175 1,719,686 (128,156) 22,131,597 $

23,561,563

CITY OF EDMOND, OKLAHOMA OTHER SUPPLEMENTARY INFORMATION June 30, 2018

City of Edmond, Oklahoma Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds For the Year Ended June 30, 2018

CAPTIAL PROJECT FUND

SPECIAL REVENUE FUNDS CDBG Entitlement Fund REVENUES Sales and use taxes Hotel/motel taxes Intergovernmental Charges for services Investment earnings Investment earnings on interfund loans Miscellaneous Total revenues

EXPENDITURES Current: General government Public Safety Health and welfare Culture, parks and recreation Capital Outlay Total Expenditures Excess (deficiency) of revenues over expenditures OTHER FINANCING SOURCES (USES) Transfers in Transfers out Total other financing sources and uses Net change in fund balances Fund balances - beginning Fund balances - ending

Asset Forfeiture Fund

377,679 377,679

6,375 108,075 114,450

Convention and Visitor's Bureau Fund

Senior Center Fund $

1,992 2,527 56,322 60,841

520,259 889 17,200 538,348

Hospital Sale Trust Fund $

Ambulatory Service Fund

30,222 30,222

Cemetery Perpetual Care

861,021 5,787 866,808

19,718 (57) 19,661

91,550 280,747 372,297

59,628 22,274 81,902

52,299 52,299

465,535 465,535

1,100 1,100

968,867 968,867

1,015 1,015

5,382

32,548

8,542

72,813

29,122

(102,059)

18,646

100,000 -

5,382

32,548

8,542

100,000 172,813

29,122

(50,046)

638,199

257,042

77,392

7,257,723

(44,664)

670,747

116

265,584

250,205

7,286,845

(102,059)

18,646

653,983 $

551,924

18,646 (Continued)

CITY OF EDMOND, OKLAHOMA OTHER SUPPLEMENTARY INFORMATION June 30, 2018

City of Edmond, Oklahoma Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds For the Year Ended June 30, 2018

CAPITAL PROJECT FUNDS

REVENUES Sales and use taxes Hotel/motel taxes Intergovernmental Charges for services Investment earnings Investment earnings on interfund loans Miscellaneous Total revenues

Cemetery Care

Park Sales Tax Fund

EXPENDITURES Current: General government Public Safety Health and welfare Culture, parks and recreation Capital Outlay Total Expenditures Excess (deficiency) of revenues over expenditures

32,748 903 33,651

2,167,676 11,060 75,466 2,254,202

10,521 10,521

109 109

602,107

(235,601)

(149,927)

108

(19,992)

243,477 -

150,000 -

Total other financing sources and uses Net change in fund balances

33,639

(19,992) 582,115

243,477 7,876

150,000 73

108

Fund balances - beginning

79,402

890,796

75,519

1,142,938

11,083

113,041

1,472,911

83,395

117

1,143,011

2012 Public Safety Center Tax Fund

1996 CIP Tax Fund

1 1

33,639

961 40,919 41,880

Roadway Improvement Fund

132 160,316 160,448

Fund balances - ending

978,018 674,077 1,652,095

Capital Improvement Fund

13,129 264,352 277,481

OTHER FINANCING SOURCES (USES) Transfers in Transfers out

12 12

Art in Public Places Fund

11,191

1,393 1,393

8,672,650 49,607 85,000 8,807,257

Total-Other Governmental Funds $

10,840,326 520,259 377,679 915,479 137,720 382,982 13,174,445

16 127,938 127,954

149 100,766 100,915

120,606 527,747 648,353

679,967 59,777 968,867 1,043,446 2,158,217 4,910,274

(126,561)

(83,492)

8,158,904

8,264,171

(2,222,020)

1,111,010 (1,500,000)

1,604,487 (3,742,012)

(126,561)

(2,222,020) (2,305,512)

(388,990) 7,769,914

(2,137,525) 6,126,646

184,910

2,222,020

2,563,990

16,004,951

17,423 17,423

2017 Capital Improvement Fund

58,349

(83,492)

10,333,904

22,131,597

CITY OF EDMOND, OKLAHOMA OTHER SUPPLEMENTARY INFORMATION June 30, 2018

CITY OF EDMOND, OKLAHOMA SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE-BUDGETARY BASIS BUDGET AND ACTUAL - NONMAJOR GOVERNMENTAL FUNDS For the fiscal year ended June 30, 2018 SPECIAL REVENUE FUNDS CDBG ENTITLEMENT

Budget

ASSET FORFEITURE FUND Variance Positive (Negative)

Actual

Budget

Variance Positive (Negative)

Actual

Revenues: Taxes

Intergovernmental

456,403

377,679

(78,724)

Charges for services

Investment income

2,000

6,375

4,375

Miscellaneous

25,000

108,075

83,075

456,403

377,679

(78,724)

27,000

114,450

87,450

46,021

44,274

1,747

1,065

881

184

Total Revenues General Government: Personal services Materials and supplies Other services and charges

538,010

46,395

491,615

Capital outlay

280,747

(280,747)

Debt service

585,096

372,297

212,799

Personal services

Materials and supplies

105,300

58,289

47,011

Other services and charges

10,700

1,339

9,361

Capital outlay

23,000

22,274

726

139,000

81,902

57,098

Total General Government Public Safety:

Total Public Safety Parks and Recreation: Personal services

Material and supplies

Other services and charges

Capital outlay

Total Parks and Recreation Health & Welfare: Personal services

Materials and supplies

Other services and charges

Capital outlay

Personal services

Materials and supplies

Other services and charges

Total Health & Welfare Economic Development & Opp.

Capital outlay Total Economic Development & Opp

Street: Personal services

Materials and supplies

Other services and charges

Capital outlay

Total Street Total Expenditures Revenues over (under) expenditures

585,096

372,297

212,799

139,000

81,902

57,098

(128,693)

5,382

134,075

(112,000)

32,548

144,548

Other financing sources (uses): Transfers from other funds

Transfers to other funds

(128,693)

5,382

134,075

(112,000)

32,548

144,548

(50,046)

638,199

Revenues and other sources over (under) expenditures and other uses Fund Balance-beginning of year Fund Balance -end of year

(178,739)

(44,664)

134,075

526,199

670,747

144,548 (continued)

118

CITY OF EDMOND, OKLAHOMA OTHER SUPPLEMENTARY INFORMATION June 30, 2018

CITY OF EDMOND, OKLAHOMA SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE-BUDGETARY BASIS BUDGET AND ACTUAL - NONMAJOR GOVERNEMNTAL FUNDS For the fiscal year ended June 30, 2018 SPECIAL REVENUE FUNDS SENIOR CENTER FUND

Budget

CONVENTION AND VISITOR'S BUREAU FUND Variance Positive (Negative)

Actual

Budget

Variance Positive (Negative)

Actual

Revenues: Taxes

Intergovernmental

574,903

520,259

(54,644)

Charges for services

1,379

1,992

613

Investment income

1,750

2,527

777

500

889

389

62,676

56,322

(6,354)

20,000

17,200

(2,800)

65,805

60,841

(4,964)

595,403

538,348

(57,055)

Miscellaneous Total Revenues

General Government: Personal services

Materials and supplies

55,550

13,230

42,320

Other services and charges

329,095

264,982

212,190

240,115

116,905

24,867

Capital outlay

Debt service

649,627

465,535

184,092

Total General Government Public Safety: Personal services

Materials and supplies

Other services and charges

Capital outlay

Total Public Safety Parks and Recreation: Personal services

Material and supplies Other services and charges Capital outlay

6,400

5,111

1,289

56,650

47,188

9,462

63,050

52,299

10,751

Personal services

Materials and supplies

Other services and charges

Capital outlay

Total Parks and Recreation Health & Welfare:

Total Health & Welfare Economic Development & Opp. Personal services

Materials and supplies

Other services and charges

Capital outlay

Personal services

Materials and supplies

Other services and charges

Capital outlay

Total Street

63,050

52,299

10,751

649,627

465,535

184,092

Total Economic Development & Opp Street:

Total Expenditures Revenues over (under) expenditures

2,755

8,542

5,787

(54,224)

72,813

127,037

Other financing sources (uses): Transfers from other funds

100,000

Transfers to other funds

2,755

8,542

5,787

45,776

172,813

127,037

Revenues and other sources over (under) expenditures and other uses

257,042

Fund Balance-beginning of year Fund Balance -end of year

259,797

257,042 $

265,584

5,787

77,392 $

123,168

77,392 $

250,205

127,037 (continued)

119

CITY OF EDMOND, OKLAHOMA OTHER SUPPLEMENTARY INFORMATION June 30, 2018

Budget

AMBULATORY SERVICE FUND

Variance Positive (Negative)

Actual

Budget

Variance Positive (Negative)

Actual

Revenues: Taxes

Intergovernmental

Charges for services

835,000

861,021

26,021

5,000

30,222

25,222

3,000

5,788

2,788

5,000

30,222

25,222

838,000

866,809

28,809

Personal services

Materials and supplies

Investment income Miscellaneous Total Revenues General Government:

Other services and charges

2,500

1,100

1,400

Capital outlay

Debt service

2,500

1,100

1,400

Personal services

Materials and supplies

Other services and charges

Capital outlay

Total General Government Public Safety:

Total Public Safety Parks and Recreation: Personal services

Material and supplies

Other services and charges

Capital outlay

Personal services

Materials and supplies

8,250

7,801

449

Other services and charges

961,028

961,066

Total Parks and Recreation Health & Welfare:

Capital outlay Total Health & Welfare

(38)

969,278

968,867

411

Economic Development & Opp. Personal services

Materials and supplies

Other services and charges

Capital outlay

Personal services

Materials and supplies

Other services and charges

Capital outlay

Total Street

Total Economic Development & Opp Street:

2,500

Total Expenditures Revenues over (under) expenditures

2,500

1,100 $

29,122

1,400 $

26,622

969,278 $

(131,278)

968,867 $

(102,058)

411 $

29,220

Other financing sources (uses): Transfers from other funds

Transfers to other funds

2,500

29,122

26,622

7,257,723

Revenues and other sources over (under) expenditures and other uses Fund Balance-beginning of year Fund Balance -end of year

7,260,223

7,286,845

26,622

(131,278)

(102,058)

653,983

522,705

551,925

29,220 $

29,220 (continued)

120

CITY OF EDMOND, OKLAHOMA OTHER SUPPLEMENTARY INFORMATION June 30, 2018

Budget

PARK SALES TAX FUNDS Variance Positive (Negative)

Actual

Budget

Variance Positive (Negative)

Actual

Revenues: Taxes

Intergovernmental Charges for services Investment income Miscellaneous

2,153,716

2,167,676

13,960

20,286

32,748

12,462

600

903

303

5,000

11,060

6,060

71,000

75,466

4,466 24,486

20,886

33,651

12,765

2,229,716

2,254,202

Personal services

Materials and supplies

100

Total Revenues General Government:

Other services and charges Capital outlay

Debt service

100

Total General Government Public Safety: Personal services

Materials and supplies

Other services and charges

Capital outlay

35,803

Total Public Safety Parks and Recreation: Personal services

417,164

381,361

Material and supplies

50,720

42,923

7,797

Other services and charges

604,967

553,734

51,233

Capital outlay

1,784,126

674,077

1,110,049

2,856,977

1,652,095

1,204,882

Total Parks and Recreation Health & Welfare: Personal services

Materials and supplies

Other services and charges

Capital outlay

Total Health & Welfare Economic Development & Opp. Personal services

Materials and supplies

Other services and charges

Capital outlay

Total Economic Development & Opp Street: Personal services

Materials and supplies

Other services and charges

Capital outlay

Total Street

100

Total Expenditures Revenues over (under) expenditures

Other financing sources (uses): Transfers from other funds Transfers to other funds Revenues and other sources over (under) expenditures and other uses

12 $

33,639

88 $

12,853

2,856,977 $

(627,261)

1,652,095 $

(21,078)

(19,992)

20,786

33,639

12,853

(648,339)

582,115

100,188

79,402 $

113,041

602,107

79,402

Fund Balance-beginning of year Fund Balance -end of year

20,786

12,853

890,796 $

242,457

1,204,882 $

1,086

1,230,454

890,796 $

1,472,911

1,229,368

1,230,454 (continued)

121

CITY OF EDMOND, OKLAHOMA OTHER SUPPLEMENTARY INFORMATION June 30, 2018

Budget

CAPITAL IMPROVEMENT FUND Variance Positive (Negative)

Actual

Budget

Variance Positive (Negative)

Actual

Revenues: Taxes

Intergovernmental

Charges for services

Investment income Miscellaneous Total Revenues

1,000

961

(39)

2,500

10,521

8,021

103,000

40,919

(62,081)

104,000

41,880

(62,120)

2,500

10,521

8,021 -

General Government: Personal services

Materials and supplies

Other services and charges

150

132

Capital outlay

310,071

160,316

149,755

Debt service

310,221

160,448

149,773

Total General Government Public Safety: Personal services

Materials and supplies

Other services and charges

Capital outlay

Total Public Safety Parks and Recreation: Personal services Material and supplies Other services and charges Capital outlay Total Parks and Recreation

13,900

13,122

778

539,322

264,352

274,970

553,247

277,481

275,766

Health & Welfare: Personal services

Materials and supplies

Other services and charges

Capital outlay

Personal services

Materials and supplies

Other services and charges

Capital outlay

Total Health & Welfare Economic Development & Opp.

Total Economic Development & Opp Street: Personal services

Materials and supplies

Other services and charges

Capital outlay

36,451

Total Street

36,451

553,247

277,481

275,766

346,672

160,448

186,224

Total Expenditures Revenues over (under) expenditures

(449,247)

(235,601)

213,646

(344,172)

(149,927)

194,245

Other financing sources (uses): Transfers from other funds Transfers to other funds Revenues and other sources over (under) expenditures and other uses Fund Balance-beginning of year Fund Balance -end of year

409,120

243,477

(40,127)

7,876

48,003

75,519

35,392

83,395

(165,643)

48,003

150,000

194,245

1,142,938

(194,172) 1,142,938 $

948,766

1,143,011

194,245 (continued)

122

CITY OF EDMOND, OKLAHOMA OTHER SUPPLEMENTARY INFORMATION June 30, 2018

Budget

1996 CIP TAX FUND

Variance Positive (Negative)

Actual

Budget

Variance Positive (Negative)

Actual

Revenues: Taxes

Intergovernmental

Charges for services

Total Revenues

109

2,500

1,393

109

2,500

1,393

Investment income Miscellaneous

(1,107) (1,107)

General Government: Personal services

Materials and supplies

Other services and charges

Capital outlay

170,130

Debt service

170,180

170,164

Total General Government Public Safety: Personal services

Materials and supplies

Other services and charges

Capital outlay

Total Public Safety Parks and Recreation: Personal services

Material and supplies

Other services and charges

Capital outlay

Personal services

Materials and supplies

Other services and charges

Capital outlay

Total Parks and Recreation Health & Welfare:

Total Health & Welfare Economic Development & Opp. Personal services

Materials and supplies

Other services and charges

Capital outlay

Personal services

Materials and supplies

Other services and charges

(1)

Capital outlay

4,220

129,038

127,938

1,100

Total Street

4,220

4,219

129,038

127,938

1,100

4,220

4,219

299,218

127,954

171,264

Total Economic Development & Opp Street:

Total Expenditures Revenues over (under) expenditures

(4,220)

108

4,328

(296,718)

(126,561)

170,157

Other financing sources (uses): Transfers from other funds

Transfers to other funds

108

4,328

Revenues and other sources over (under) expenditures and other uses

(4,220) 11,083

Fund Balance-beginning of year Fund Balance -end of year

6,863

11,083 $

11,191

(296,718)

4,328

(126,561)

184,910 $

(111,808)

170,157

184,910 $

58,349

170,157 (continued)

123

CITY OF EDMOND, OKLAHOMA OTHER SUPPLEMENTARY INFORMATION June 30, 2018

Budget

2017 CAPITAL IMPROVEMENT TAX FUND

Variance Positive (Negative)

Actual

Budget

Variance Positive (Negative)

Actual

Revenues: Taxes

8,602,224

8,672,650

70,426

Intergovernmental

Charges for services

Investment income

17,423

30,000

49,607

19,607

Miscellaneous

170,000

85,000

(85,000)

17,423

8,802,224

8,807,257

Total Revenues

5,033

General Government: Personal services

5,000

Materials and supplies

215,924

120,606

95,318

Other services and charges

1,754,903

Capital outlay

Debt service

1,975,827

120,606

1,855,221

Total General Government Public Safety: Personal services

Other services and charges

149

(149)

99,365

100,766

(1,401)

99,365

100,915

(1,550)

Capital outlay Total Public Safety

Materials and supplies

Parks and Recreation: Personal services

Material and supplies

Other services and charges

Capital outlay

2,027,747

(2,027,747)

2,027,747

(2,027,747)

Total Parks and Recreation Health & Welfare: Personal services

Materials and supplies

Other services and charges

Capital outlay

Total Health & Welfare Economic Development & Opp. Personal services

Materials and supplies

Other services and charges

Capital outlay

Total Economic Development & Opp Street: Personal services

Materials and supplies

Other services and charges

99,365

100,915

1,975,827

2,148,353

Capital outlay Total Street Total Expenditures Revenues over (under) expenditures

(99,365)

(83,492)

(1,550) $

15,873

6,826,397

6,658,904

(172,526) $

(167,493)

Other financing sources (uses): Transfers from other funds

Transfers to other funds Revenues and other sources over (under) expenditures and other uses Fund Balance-beginning of year Fund Balance -end of year

1,111,010

(2,222,020)

(2,321,385)

(2,305,512)

15,873

7,937,407

7,769,914

2,222,020

2,563,990

(99,365)

(83,492)

15,873

1,111,010

(2,222,020)

10,501,397

10,333,904

(167,493) $

(167,493) (continued)

124

CITY OF EDMOND, OKLAHOMA OTHER SUPPLEMENTARY INFORMATION June 30, 2018

CITY OF EDMOND, OKLAHOMA SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE-BUDGETARY BASIS BUDGET AND ACTUAL - MAJOR GOVERNMENTAL CAPITAL PROJECT FUND For the fiscal year ended June 30, 2018

Capital Project Funds 2000 Capital Improvement Tax Fund

Budget

Variance Positive (Negative)

Actual

REVENUES Taxes

$ 12,852,195

Intergovernm ental

Licenses and permits

13,006,050 -

Investment income

20,000

353,448

Mis cellaneous

60,000

126,968

Contributed capital

Investment income Miscellaneous Total revenues

‐ ‐ 12,932,195

‐ ‐ 13,486,466

$ 153,855 ‐ ‐ 333,448 66,968 ‐ ‐ ‐ 554,271

EXPENDITURES General Government: Materials and supplies Other services and charges

200

42,032

92,160

200 (50,128) 978,146

Capital outlay

1,274,603

296,457

Debt service

8,434,306

8,299,312

134,994

9,751,141

8,687,929

1,063,212

926,496

841,588

926,496

841,588

84,908 84,908

Total General Governm ent Parks and Recreation: Capital outlay Total Parks and Recreation Econom ic Developm ent & Opp: Capital outlay

4,619,625

418,036

4,619,625

418,036

340,000

255,712

340,000

255,712

84,288 84,288

Capital outlay

10,841,926

4,018,458

6,823,468

Total Street

10,841,926

4,018,458

6,823,468

26,479,188

14,221,723

12,257,465

Total Economic Development & Opp

4,201,589 4,201,589

Community Development: Capital outlay Total Com munity Development Street:

Total Expenditures

(13,546,993)

Revenues over (under) expenditures

(735,257)

12,811,736

Other financing sources (uses): Transfers from other funds

1,111,010

Transfers to other funds Total of other financing res ources

Revenues and other sources over (under) expenditures and other uses

122,194

844,774

966,968

122,194

231,711

12,933,930

24,038,404 $

125

(144,042)

(12,702,219)

Fund Balance-beginning of year Fund Balance -end of year

1,111,010

(266,236)

11,336,185

24,038,404 $

24,270,115

12,933,930

CITY OF EDMOND, OKLAHOMA OTHER SUPPLEMENTARY INFORMATION June 30, 2018

NONMAJOR ENTERPRISE FUNDS The City operates eight enterprise funds under the legal entity of the Edmond Public Works Authority ("EPWA"), a public trust created under applicable Oklahoma statutes on October 6, 1970, with the City named as the beneficiary thereof. The Electric, Water and Wastewater enterprise funds are reported as Major funds. The remaining five enterprise funds are reported as nonmajor and include the following: SANITATION - Established to acquire and furnish sanitation services to the citizens, receive all revenues generated, pay debt service requirements on the debt issued related to the sanitation facility, pay all operating expenses, and finance future sanitation improvements. ARCADIA LAKE - Established to account for revenues and expenses related to the operations of the Arcadia Lake and Recreation Facility. DRAINAGE - Established to account for a fee assessed on each customer’s utility bill for construction and further improvements to the City’s drainage system. KICKINGBIRD GOLF COURSE - The Golf Course Fund accounts for the costs of operating and maintaining the City’s 18-hole municipal golf course. Revenues are generated through green fees, cart rentals, driving range fees and restaurant operations. YOURGOVSHOP - The YourGovShop Fund is a cooperative purchasing service, operated by the City, which provides its partners and members the lowest competitive prices for good and services, as well as a reduction in the administrative costs of purchasing. Financing is provided by revenues generated from rebates, membership fees and General Fund transfers. CityLink – The CityLink Fund is for the costs of operating and maintaining Edmond’s public transportation service through a reliable, affordable, customer-friendly transportation service to the residents of Edmond for access to employment, shopping, medical, education and social destinations. The General Fund along with sponsorship funds the operations of this service.

126

CITY OF EDMOND, OKLAHOMA OTHER SUPPLEMENTARY INFORMATION June 30, 2018

City of Edmond, Oklahoma Combining Statement of Net Position Nonmajor Enterprise Funds June 30, 2018

PWA Sanitation Fund ASSETS Current assets: Cash and cash equivalents Investments Restricted assets: Cash and cash equivalents Investments Receivables: Accrued interest receivable Utility receivables, net of allowance for uncollectible accounts Due from other governments Other receivables Due from other funds Inventories Total current assets Non-current assets: Restricted assets: Cash and cash equivalents Investments Capital Assets: Nondepreciable Depreciable, net of accumulated depreciation Total non-current assets Total assets

DEFERRED OUTFLOWS OF RESOURCES Deferred charge on refunding Deferred amounts related to pensions Deferred amounts related to OPEB Total deferred outflows of resources LIABILITIES Current liabilities: Accounts payable Accrued wages payable Accrued interest payable Due to other funds Unearned revenue Compensated absences Meter deposit liability Revenue bonds payable Total current liabilities Non-current liabilities: Compensated absences Meter deposit liability Total OPEB liability Net pension liability Revenue bonds payable, net Total non-current liabilities Total liabilities DEFERRED INFLOW OF RESOURCES Deferred amounts related to pensions Deferred amounts related to OPEB Total deferred inflows of resources NET POSITION Net investment in capital assets Restricted for debt service Restricted for scholarships Unrestricted (deficit) Total net position

683,434 7,152,886

PWA Arcadia Lake Fund

14,741 128,412

PWA Drainage Fund

Kickingbird Golf Course Fund

743,020 7,678,606

33,255 338,750

Yourgovshop Fund

CityLink

19,897 207,038

Total

89,813 934,528

1,584,160 16,440,220

241,106

385,709 118,368

52,743

118,739 36,439

504,448 448,656

24,130 1,079,660 4,500 17,574 9,203,290

419 647,649

25,176 221,555 872,562 9,593,662

1,104 2,114 81,074 611,475

674 91,523 319,132

3,042 10,238 1,037,621

54,545 1,301,215 12,352 96,023 890,136 81,074 21,412,829

12,602 23,921

90,829 172,402

29,107 55,247

132,538 251,570

346,415 382,938 9,586,228

495,278 3,265,694 4,024,203 4,671,852

626,666 7,176,303 7,802,969 17,396,631

541,171 1,022,535 1,648,060 2,259,535

319,132

1,037,621

1,663,115 11,810,947 13,858,170 35,270,999

3,552 303,597 5,813 312,962

43,528 98,061 2,072 143,661

87,987 1,308 89,295

13,949 163,029 2,856 179,834

7,054 80 7,134

7,557 101 7,658

61,029 667,285 12,230 740,544

468,745 55,299 5,028 64,938 8,976 24,970 27,316 655,272

2,289 34,196 33,854 61,749 4,219 500 179,328 316,135

6,700 12,312 287,139 3,194 5,275 314,620

92,076 46,991 10,849 5,425 57,467 212,808

1,259 393 1,652

111,971 1,262 168 113,401

681,781 151,319 49,731 352,077 61,749 22,375 30,745 264,111 1,613,888

80,788 224,726 176,233 682,171 210,515 1,374,433 2,029,705

37,974 62,810 216,973 1,392,876 1,710,633 2,026,768

28,747 47,468 39,637 203,378 319,230 633,850

48,822 86,592 348,719 446,356 930,489 1,143,297

3,541 2,439 16,428 22,408 24,060

1,515 3,049 16,523 21,087 134,488

201,387 272,194 370,760 1,484,192 2,049,747 4,378,280 5,992,168

12,206 9,326 21,532

1,777 3,324 5,101

2,074 2,098 4,172

24,237 4,582 28,819

51 129 180

4,184 161 4,345

44,529 19,620 64,149

302,026 302,026

906,446 906,446

11,221,233 984,542 1,601 17,747,850 29,955,226

112,136 22,905 7,712,912 7,847,953

2,232,296 732,954 (181,606) 2,783,644

7,802,969 9,044,935 16,847,904

127

1,073,832 228,683 1,601 (36,863) 1,267,253

CITY OF EDMOND, OKLAHOMA OTHER SUPPLEMENTARY INFORMATION June 30, 2018

City of Edmond, Oklahoma Combining Statement of Revenues, Expenses and Changes in Fund Net Position Nonmajor Enterprise Funds For the Year Ended June 30, 2018 PWA Sanitation Fund REVENUES Charges for services Operating grants and contributions Miscellaneous Total operating revenues

OPERATING EXPENSES Personal services Materials and supplies Maintenance, operations and contractual services Depreciation Total Operating Expenses Operating income (loss)

9,341,779 9,341,779

PWA Arcadia Lake Fund $

1,458,068 373,583 5,885,762 20,707 7,738,120 1,603,659

NON-OPERATING REVENUES (EXPENSES) Interest and investment revenue Gain (loss) on capital asset disposal Interest expense Miscellaneous expenses Total non-operating revenue (expenses)

82,846 (8,423) 74,423

1,026,559 46,004 1,072,563

PWA Drainage Fund

Kickingbird Golf Course Fund

1,823,507 1,823,507

1,927,151 49,311 1,976,462

Yourgovshop Fund $

92,670 92,670

CityLink $

325,498 389,439 714,937

631,956 76,529 491,602 204,311 1,404,398 (331,835)

428,308 7,417 378,509 66,375 880,609 942,898

1,020,328 445,104 445,506 117,544 2,028,482 (52,020)

34,312 413 40,173 74,898 17,772

8,410 (65,457) (57,047)

86,695 83 86,778

6,000 (20,952) (20,976) (35,928)

2,559 2,559

9,524 9,524

Total $

32,991 72,588 1,285,982 1,391,561 (676,624)

14,444,494 389,439 187,985 15,021,918

3,605,963 975,634 8,527,534 408,937 13,518,068 1,503,850

196,034 (20,952) (94,856) 83 80,309

Income (loss) before transfers

1,678,082

(388,882)

1,029,676

(87,948)

20,331

(667,100)

1,584,159

Transfers in Transfers out Change in net position

(358,300) 1,319,782

235,018 (153,864)

1,029,676

(87,948)

20,331

700,000 32,900

935,018 (358,300) 2,160,877

281,695

873,546

Total net position - beginning, restated Total net position - ending

6,528,171 $

7,847,953

2,937,508 $

2,783,644

15,818,228 $

16,847,904

128

1,355,201 $

1,267,253

302,026

906,446

27,794,349 $

29,955,226

CITY OF EDMOND, OKLAHOMA OTHER SUPPLEMENTARY INFORMATION June 30, 2018

City of Edmond, Oklahoma Combining Statement of Cash Flows Nonmajor Enterprise Funds For the Year Ended June 30, 2018

PWA Sanitation Fund CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers Payments to suppliers Payments to employees Payment of customer meter deposits Interfund payments Interfund receipts Net cash provided by (used in) operating activities

CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Transfers from other funds Transfer to other funds Net cash provided by (used in) noncapital financing activities CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Purchase of capital assets Principal paid on capital debt Interest paid on capital debt Net cash provided by (used in) capital and related financing activities CASH FLOWS FROM INVESTING ACTIVITIES Purchases of investments Sale of investments Interest and dividends Net cash provided by (used in) investing activities Net increase (decrease) in cash and cash equivalents Balances-beginning of year Balances-end of year

Reconciliation of Operating Income (Loss) to Net Cash Provided by (used in) Operating Activities: Operating income (loss) Adjustments to reconcile operating income (loss) to net cash provided by (used in) operating activities: Depreciation expense Miscellaneous non-operating revenue (expense) Change in assets and liabilities: Receivables, net Inventories Due from other funds Deferred outflows related to pension Deferred outflows related to OPEB Accounts and other payables

9,217,956 (6,154,395) (1,388,150) 7,635 1,683,046

PWA Arcadia Lake Fund $

1,134,312 (569,355) (598,688) (500) (34,231)

PWA Drainage Fund

Kickingbird Golf Course Fund

1,793,452 (515,360) (407,311) (98,166) 772,615

(358,300) (358,300)

235,018 235,018

(31,696) (10,462) (42,158)

(411,179) (74,775) (485,954)

(1,945,225) 91,471 (1,853,754)

(117,895) 8,351 (109,544)

(571,166)

(394,711)

1,267,202

885,990

1,976,462 (874,438) (996,250) 105,774

Yourgovshop Fund $

CityLink

41,681 (40,586) (32,345) (31,250)

Total

871,246 (1,350,728) (32,142) (511,624)

15,035,109 (9,504,862) (3,454,886) (500) (98,166) 7,635 1,984,330

700,000 700,000

935,018 (358,300) 576,718

(60,577) (131,765) (23,961) (216,303)

(60,577) (574,640) (109,198) (744,415)

(1,545,604) 86,097 (1,459,507)

(55,969) 5,907 (50,062)

883 2,296 3,179

(686,892)

(160,591) 341,692

1,429,912

(263,363) 9,557 (253,806)

(3,928,056) 883 203,679 (3,723,494)

(28,071)

(65,430)

(1,906,861)

47,968

155,243

4,128,007

696,036

491,279

743,020

181,101

19,897

89,813

2,221,146

683,434 12,602 696,036

14,741 385,709 90,829 491,279

743,020 743,020

33,255 118,739 29,107 181,101

19,897 19,897

89,813 89,813

1,584,160 504,448 132,538 2,221,146

1,603,659

(331,835)

942,898

(52,020)

17,772

(676,624)

1,503,850

20,707 -

Due to other funds Unearned revenue Customer meter deposits payable Total OPEB liability Net Pension liability Deferred inflows related to pension Deferred inflows related to OPEB Accrued compensated absences Net cash provided by (used in) operating activities

Non-cash Activities: Change in fair value of investments Total Non-cash Activities

$ $

204,311 -

66,375 83

117,544 -

(123,823) 7,635 108,945 (395) 108,985

44,799 (141) 3,358

(30,138) 37,263 (89) (132,219)

(10,508) 92,794 (194) 25,855

(50,989) 3,074 (5) 83

(1,117) (44,237) 774 9,326 (7,413) 1,683,046

61,749 (500) (398) (23,028) (43) 3,324 4,173 (34,231)

(98,166) (251) (17,844) (43) 2,098 2,648 772,615

(549) (81,935) 21,353 4,582 (11,148) 105,774

(16) (1,507) 13 129 196 (31,250)

$ $

12,317 12,317

$ $

21,871 21,871

$ $

85 85

129

368 368

408,937 83

156,309 3,298 (7) 7,898

(48,641) (10,508) 7,635 290,173 (831) 13,960

(98,166) 61,749 (500) (2,350) (170,163) 21,075 19,620 (11,593) 1,984,330

(19) (1,612) (979) 161 (49) (511,624)

1,746 1,746

$ $

36,387 36,387

CITY OF EDMOND, OKLAHOMA OTHER SUPPLEMENTARY INFORMATION June 30, 2018

INTERNAL SERVICE FUNDS The Internal Service Funds are used to account for the financing of administrative services provided by one department or function to other departments or functions of the City on a cost reimbursement basis. EMPLOYEE GROUP INSURANCE FUND - The Employee Group Insurance Fund has been established to account for the direct and indirect costs of administering a self-funded group health insurance plan. Financing is provided by the City, the Edmond Public Works Authority, City employees, and interest earnings on fund investments. Costs associated with the plan include the payment of employee and dependent health and dental claims, third party administrative costs, insurance premium payments for catastrophic claims, fully insured life, accidental death and dismemberment, and long term disability insurance. LIABILITY/TORT CLAIM FUND - The Liability/Tort Claim Fund has been established to account for direct and indirect costs for the payment of judgments and settled claims relating to torts and workerâ&#x20AC;&#x2122;s compensation. Financing is provided through billings to user departments. VEHICLE MAINTENANCE FUND - The Vehicle Maintenance Fund has been established to account for expenditures necessary to maintain City vehicles. Financing is provided through billings to user departments. FLEET MANAGEMENT FUND - The Fleet Management Fund has been established to accumulate resources for the replacement of vehicles and other equipment on a systematic basis. Financing is provided by fleet lease assessments to the General Fund, Park Sales Tax Fund, Administrative Support Services Fund, Edmond Public Works Authority, Fire Public Safety Limited Tax Fund and the Police Public Safety Limited Tax Fund. FIELD SERVICES FUND â&#x20AC;&#x201C; The Field Services Fund has been established to provide street maintenance, water/wastewater line maintenance and traffic control systems maintenance. Financing is provided by the General Fund, Water and Wastewater Fund based upon applicable cost accounting methods. ADMINISTRATIVE SUPPORT SERVICES FUND - The Administrative Support Services Fund has been established to account for and allocate administrative overhead costs to user departments of the City. Financing is provided through billings to user departments based upon applicable cost accounting methods.

130

CITY OF EDMOND, OKLAHOMA OTHER SUPPLEMENTARY INFORMATION June 30, 2018

City of Edmond, Oklahoma Combining Statement of Net Position Internal Service Funds June 30, 2018

Group Insurance Fund ASSETS Current assets: Cash and cash equivalents Investments Receivables: Accrued interest Due from other governments Other receivables Due from other funds Inventories Total current assets Non-current assets: Restricted assets: Cash and cash equivalents Investments Capital Assets: Nondepreciable Depreciable, net of accumulated depreciation Total non-current assets Total assets

DEFERRED OUTFLOWS OF RESOURCES Deferred amounts related to pensions Deferred amounts related to OPEB Total deferred outflow of resources LIABILITIES Current Liabilities: Accounts payable Salaries payable Accrued Interest Payable Due to other funds Payable to other governments Other Accrued expenses Unearned revenue Compensated absences Capital leases obligation Claims and judgments Bonds, notes, and loans payable Total current liabilities Non-current liabilities: Compensated absences Total OPEB liability Net pension liability Claims and judgments Total non-current liabilities Total liabilities DEFERRED INFLOW OF RESOURCES Deferred amounts related to pensions Deferred amounts related to OPEB Total deferred inflow of resources NET POSITION Net investment in capital assets Restricted for other purposes Unrestricted (deficit) Total Net Position

343,871 3,578,082

Vehicle Maintenance Fund

Fleet Management Fund

Liability/Tort Claim Fund

8,350 86,886

417,881 2,787,391

1,068,026 11,113,143

Field Services Fund

Administrative Support Services Fund

134,373 1,398,197

462,999 4,794,809

Total

2,435,500 23,758,508

11,651 74,584 4,008,188

283 215,726 54 207,389 518,688

13,670 3,218,942

36,190 12,217,359

4,553 189,440 926,653 2,653,216

15,614 57,067 5,330,489

81,961 189,440 290,310 54 1,191,109 27,946,882

135,546 1,410,399

4,008,188

518,688

1,545,945 4,764,887

14,813,901 14,813,901 27,031,260

2,653,216

734,968 2,537,717 3,272,685 8,603,174

734,968 17,351,618 19,632,531 47,579,413

208,073 3,158 211,231

53,802 784 54,586

13,543 121 13,664

990,924 17,921 1,008,845

2,687,181 45,457 2,732,638

3,953,523 67,441 4,020,964

194,111 476,167 670,278

69,439 37,330 6,028 112,797

81,240 10,727 1,890 792,000 885,857

25,742 2,712 54 319 28,827

73,465 186,451 27,160 287,076

172,230 508,092 71,950 752,272

616,227 745,312 54 107,347 1,268,167 2,737,107

158,722 158,722 829,000

54,139 95,739 447,826 597,704 710,501

17,108 23,782 123,001 1,595,000 1,758,891 2,644,748

2,853 3,659 31,867 38,379 67,206

244,437 543,333 2,248,752 3,036,522 3,323,598

647,668 1,378,151 6,144,439 8,170,258 8,922,530

966,205 2,044,664 8,995,885 1,753,722 13,760,476 16,497,583

6,918 5,066 11,984

4,376 1,259 5,635

213 194 407

18,609 28,753 47,362

49,549 72,931 122,480

79,665 108,203 187,868

3,179,188 3,179,188

7,434 7,434

1,545,945 623,145 2,169,090

14,813,901 12,163,410 26,977,311

291,101 291,101

3,272,685 (981,883) 2,290,802

131

18,086,586 1,545,945 15,282,395 34,914,926

CITY OF EDMOND, OKLAHOMA OTHER SUPPLEMENTARY INFORMATION June 30, 2018

City of Edmond, Oklahoma Combining Statement of Revenues, Expenses and Changes in Fund Net Position Internal Service Funds For the Year Ended June 30, 2018

Group Insurance Fund OPERATING REVENUES Charges for services Miscellaneous Total operating revenues

OPERATING EXPENSES Personal services Materials and supplies Other services and charges Insurance premium expense Claims expense Depreciation Total operating expenses Operating income (loss)

507 1,211,594 810,224 8,258,470 10,280,795 (203,306)

NON-OPERATING REVENUES (EXPENSES) Interest and investment revenue Gain (loss) on sale of capital assets Miscellaneous revenue Total non-operating revenue (expenses) Income (loss) before contributions Capital contributions Change in net position Total net position - beginning, restated Total net position - ending

10,077,489 10,077,489

Vehicle Maintenance Fund $

983,000 1,534,197 625,897 3,143,094 (316,812)

1,578,650 214,703 1,793,353

Fleet Management Fund $

264,281 9,603 184,102 735,604 365,248 1,558,838 234,515

4,516,809 4,516,809

2,909 30,498 33,407

47,369 47,369

(128,995) (128,995)

(283,405) (283,405)

281,884 281,884

2,514,385 211,810 2,726,195

1,887,206

24,251,116

3,179,188

290,839 $

7,434

2,169,090

132

Field Services Fund

Administrative Support Services Fund

69,586 18,996 43,004 1,913,109 2,044,695 2,472,114

44,181 30,130 74,311

3,308,183 $

2,826,282 2,826,282

Liability/Tort Claim Fund

4,972,863 1,268,366 4,856,656 11,097,885 (779,513)

120,706 (100,485) 22,050 42,271

26,977,311

10,311,772 6,600 10,318,372

13,503,259 767,085 5,126,470 419,063 19,815,877 294,943

49,421,822 221,303 49,643,125

19,792,989 3,598,754 12,047,723 1,545,828 8,623,718 2,332,172 47,941,184 1,701,941

20,939 20,939

51,194 126,394 177,588

(758,574) (758,574)

472,531 472,531

2,097,826 211,810 2,309,636

1,818,271

32,605,290

1,049,675 $

20,110,820 20,110,820

Total

291,101

2,290,802

287,298 (100,485) 209,072 395,885

34,914,926

CITY OF EDMOND, OKLAHOMA OTHER SUPPLEMENTARY INFORMATION June 30, 2018

City of Edmond, Oklahoma Combining Statement of Cash Flows Internal Service Funds For the Year Ended June 30, 2018

Group Insurance Fund CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers Payments to suppliers Payments to employees Claims and judgments paid Interfund payments Net cash provided by (used in) operating activities

CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Purchase of capital assets Proceeds from sale of capital assets Net cash provided by (used in) capital and related financing activities CASH FLOWS FROM INVESTING ACTIVITIES Purchases of investments Sale of investments Interest and dividends Net cash provided by (used in) investing activities Net increase (decrease) in cash and cash equivalents Balances-beginning of year

10,077,564 (2,034,400) (8,723,782) (680,618)

Vehicle Maintenance Fund $

Fleet Management Fund

Liability/Tort Claim Fund

2,783,075 (2,356,213) (925,400) (54) (498,592)

126,441 42,740 169,181

393,950 2,334 396,284

(511,437)

(102,308)

855,308

110,658

1,793,353 (1,005,374) (249,928) (795,248) (257,197)

(288,630) 46,282 (242,348) (499,545)

4,538,859 (55,851) (65,562) 54 4,417,500

Field Services Fund

Administrative Support Services Fund

20,237,214 (6,107,462) (12,790,466) 1,339,286

Total $

49,748,437 (17,782,894) (18,749,834) (9,519,030) 3,696,679

(2,351,172) (2,351,172)

(71,680) (71,680)

(2,422,852) (2,422,852)

(2,932,965) 120,834 (2,812,131)

272,487 20,068 292,555

(1,598,235) 51,711 (1,546,524)

(4,819,830) 792,878 283,969 (3,742,983)

(331,145)

(278,918)

(2,469,156)

465,518

741,917

5,040,202

(745,803)

1,052,972

10,318,372 (6,223,594) (4,718,478) (623,700)

1,813,829

Balances-end of year

343,871

8,350

553,427

1,068,026

134,373

462,999

2,571,046

Reconciliation to Combining Statement of Net Position: Cash and cash equivalents Cash and cash equivalents, non-restricted Total cash and cash equivalents, end of year

$ $ $

343,871 343,871

$ $ $

8,350 8,350

$ $ $

417,881 135,546 553,427

$ $ $

1,068,026 1,068,026

$ $ $

134,373 134,373

$ $ $

462,999 462,999

$ $ $

2,435,500 135,546 2,571,046

234,515

2,472,114

(779,513)

294,943

Reconciliation of Operating Income (Loss) to Net Cash Provided by (used in) Operating Activities: Operating income (loss) $ (203,306) Adjustments to reconcile operating income (loss) to net cash provided by (used in) operating activities: Depreciation expense Miscellaneous non-operating revenue 30,130 Change in assets and liabilities: Receivables, net Other receivable (30,055) Inventories Due from other governments Due from other funds Deferred outflows related to pension Deferred outflows related to OPEB Accounts and other payables (12,075) Claims liability (465,312) Due to other funds Total OPEB liability Net Pension liability Deferred inflows related to pension Deferred inflows related to OPEB Accrued compensated absences $ (680,618) Net cash provided by (used in) operating activities

Non-cash Activities: Capital assets donated Change in fair value of investments Total Non-cash Activities

$ $

2,875 2,875

(316,812) 30,498

1,913,109 22,050

(73,705) (92,725) (54) 62,846 (215) (100,632) (607) (19,826) 1,793 5,066 5,781 (498,592)

6,450 (9) 6,315 54 (23) (3,500) 69 194 677 4,417,500

(1,242) (1,242)

211,810 20,093 231,903

133

21,010 (53) (75,387) (430,000) (151) (9,344) (680) 1,259 1,634 (257,197)

4,839 4,839

$ $

(44,411) 368,705 (1,218) (47,866) (3,445) (156,024) 5,843 28,753 5,476 (623,700)

375 375

$ $

1,701,941

419,063 126,394

2,332,172 209,072

8,749 1,059,523 (3,089) (202,616) (8,738) (475,649) 10,055 72,931 37,720 1,339,286

(103,760) (128,387) (54) 1,518,534 (4,584) (432,261) (895,312) 54 (12,964) (664,343) 17,080 108,203 51,288 3,696,679

9,786 9,786

$ $

211,810 36,726 248,536

CITY OF EDMOND, OKLAHOMA OTHER SUPPLEMENTARY INFORMATION June 30, 2018

AGENCY FUNDS Agency Funds are used to account for assets held by the City as an agent for individuals, private organizations, and other governmental funds. Agency Funds are custodial in nature (assets equal liabilities) and do not involve measurement of results of operations. SIDEWALK AND DRIVEWAY ESCROW FUND accounts for contractor performance deposits held by the City on various City construction projects. The deposits are refunded after the projects have been satisfactorily completed. CLEET ASSESSMENT FUND accounts for the receipt of a State mandated penalty assessment on all City fines and forfeitures to be collected by the City and remitted quarterly to the State for its law enforcement training fund.

134

CITY OF EDMOND, OKLAHOMA OTHER SUPPLEMENTARY INFORMATION June 30, 2018

City of Edmond, Oklahoma Combining Statement of Fiduciary Assets and Liabilities Agency Funds June 30, 2018

Sidewalk and Driveway Escrow Fund ASSETS Cash and cash equivalents

C.L.E.E.T. PENALTY ASSESSMENT FUND

TOTALS

456,480

28,660

485,140

Total assets

456,480

28,660

485,140

LIABILITIES Accounts payable Refundable deposits

456,480

18,515 10,145

18,515 466,625

456,480

28,660

485,140

Total liabilities

City of Edmond, Oklahoma Combining Statement of Changes in Assets and Liabilities Agency Funds For the fiscal year ended June 30, 2018

BALANCE JUNE 30, 2017 SIDEWALK AND DRIVEWAY ESCROW Assets: Cash and cash equivalents Other receivables

ADDITIONS

DEDUCTIONS

BALANCE JUNE 30, 2018

568,922 26,656

333,493 -

445,935 26,656

456,480 -

595,578

333,493

472,591

456,480

LIABILITIES Refundable deposits

595,578

306,837

445,935

456,480

Total liabilities

595,578

306,837

445,935

456,480

17,532

456,437

445,309

28,660

17,532

456,437

445,309

28,660

17,156 376

236,799 219,638

235,440 209,869

18,515 10,145

17,532

456,437

445,309

28,660

586,454 26,656

789,930 -

891,244 26,656

485,140 -

613,110

789,930

917,900

485,140

17,156 376 595,578

236,799 219,638 306,837

235,440 209,869 445,935

18,515 10,145 456,480

613,110

763,274

891,244

485,140

Total assets

C.L.E.E.T. PENALTY ASSESSMENT FUND Assets: Cash and cash equivalents Total assets LIABILITIES Accounts payable Due to other governments Total liabilities

TOTALS-ALL AGENCY FUNDS Assets: Cash and cash equivalents Other receivables Total assets LIABILITIES Accounts payable Due to other governments Refundable deposits Total liabilities

135

CITY OF EDMOND, OKLAHOMA OTHER SUPPLEMENTARY INFORMATION June 30, 2018

REVENUE BOND/NOTE COVENANT SCHEDULES The revenue bond and note agreements and indentures contain certain financial related covenants dealing with minimum requirements for net pledged revenue and minimum reserve account balance requirements. The following schedules are presented to indicate the level of compliance by the City or its public trusts with these covenants. Schedule of Revenue Bond/Note Debt Service Coverage This schedule compares the net revenues generated from revenues sources pledged for the payment of principal and interest of revenue bond and notes to the maximum annual debt service requirements on the debt. Schedule of Reserve Account Balances This schedule compares the amount of assets held in trust as reserve accounts related to revenue bonds and notes to the required balances to be maintained in these accounts as required by the debt covenants.

136

CITY OF EDMOND, OKLAHOMA OTHER SUPPLEMENTARY INFORMATION June 30, 2018

CITY OF EDMOND, OKLAHOMA SCHEDULE OF REVENUE BOND/NOTE DEBT SERVICE COVERAGE For the fiscal year ended June 30, 2018 Sales Tax and Utility Revenue Bonds Series 2010, 2012, 2013 2014, and 2014B

OWRB/Bank of America Notes Payable Series 2005C and 2013 General Sales Revenue Note GROSS REVENUES OF THE SYSTEM: Charges for services Investment income Miscellaneous income

Total Gross Revenues of the System

150,726,608 2,366,220 146,665

Utility Revenue Bonds Series 2014, 2015 2016, and 2017

150,726,608 2,366,220 146,665

153,239,493

9,586,103 2,702,076 94,196,441 -

9,586,103 2,702,076 94,196,441 8,523,622

9,586,103 2,702,076 94,196,441 -

106,484,620

115,008,242

106,484,620

Total Gross Revenues of the System in Excess of Total Operation and Maintenance Expenses

46,754,873

38,231,251

46,754,873

Add: Pledged sales tax revenue

34,449,067

12,587,120

OPERATION AND MAINTENANCE EXPENSES: Personal services Materials and supplies Maintenance, operations and contractual services Debt service on prior lien utility system revenue bonds Total Operation and Maintenance Expenses

Net Revenues of the System plus pledged sales tax revenue

81,203,940

50,818,371

59,341,993

Maximum Debt Service Requirements on Liabilities

6,954,274

7,455,266

18,244,923

Computed Coverage Coverage Requirement

1168%

682%

325%

125%

NOTE: Revenues and expenses include only amounts related to the electric, water, wastewater, and sanitation funds. Operating expenses exclude depreciation, amortization and other non-cash items, in accordance with the terms of the applicable bond indentures. Maximum Debt Service Requirements on Liabilities is based on the following: Sales Tax and Utility System Revenue Bonds total debt service for the 2010, 2012, 2013 and 2014, 2014B series bonds in fiscal year 2021. Utility System Revenue Bonds total debt service for the 2014, 2015, and 2016 series bonds and OWRB notes payable in fiscal year 2024.

137

CITY OF EDMOND, OKLAHOMA OTHER SUPPLEMENTARY INFORMATION June 30, 2018

RESERVE BALANCE JUNE 30, 2018

REQUIRED RESERVES Required Balance: Series 2010 Sales Tax and Utility Revenue Bonds Series 2012 Sales Tax and Utility Revenue Bonds Series 2013 Sales Tax and Utility Revenue Bonds Series 2014 Sales Tax and Utility Revenue Bonds Series 2014B Sales Tax and Utility Revenue Bonds Series 2015 Utility Revenue Bonds Series 2016 Sales Tax and Utility Revenue Bonds Series 2017 Sales Tax and Utility Revenue Bonds

1,390,000 1,325,500 1,434,939 2,496,505 2,245,000 2,269,935 2,360,100 10,094,500

138

1,429,889 1,363,771 1,442,710 2,521,592 2,339,164 2,311,067 2,376,993 10,166,762

EXCESS BALANCE OVER REQUIRED RESERVES

39,889 38,271 7,771 25,087 94,164 41,132 16,893 72,262

CITY OF EDMOND, OKLAHOMA OTHER SUPPLEMENTARY INFORMATION June 30, 2018

DISCRETELY PRESENTED COMPONENT UNIT Additional information for the discretely presented component unit referred to in the notes to the financial statements is provided. HISTORIC PRESERVATION TRUST Created November 15, 1982 to preserve the qualities relating to the history of the City in order to promote the economic and general welfare of the people of the City of Edmond and to ensure the harmonious, orderly and efficient growth and development of the municipality. The EHPT governing body is appointed by the current City Council. The City is able to impose its will on the EHPT because, pursuant to state law, all issuance of EHPT debt requires a two-thirds approval of the City Council. The EHPT component unit does not issue separate financial statements.

139

CITY OF EDMOND, OKLAHOMA OTHER SUPPLEMENTARY INFORMATION June 30, 2018

CITY OF EDMOND, OKLAHOMA BALANCE SHEET DISCRETELY PRESENTED COMPONENT UNIT June 30, 2018 HISTORIC PRESERVATION TRUST ASSETS Cash and cash equivalents

50,295

Unassigned

50,295

Total liabilities and fund balances

50,295

Total assets LIABILITIES AND FUND BALANCES Fund Balances:

Reconciliation to Statement of Net Position: Fund balance Amounts reported for the discretely presented component unit in the statement of net position are different because: Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the funds. Net position of component unit

177,337 $

140

227,632

CITY OF EDMOND, OKLAHOMA OTHER SUPPLEMENTARY INFORMATION June 30, 2018

CITY OF EDMOND, OKLAHOMA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE DISCRETELY PRESENTED COMPONENT UNIT FOR THE FISCAL YEAR ENDED June 30, 2018 HISTORIC PRESERVATION TRUST Revenues: Investment income

Miscellaneous

45 1,379

Total Revenues

1,424

Expenditures: Current: Culture, parks and recreation Total Expenditures

60,313 60,313

Revenues over (under) expenditures

(58,889)

Other financing sources: Payment from the City of Edmond

20,000

Net change in fund balance

(38,889)

Fund balances - beginning Fund balances - ending

89,184 50,295

(38,889)

Reconciliation to Statement of Activities: Net Change in fund balance

Amounts reported for the discretely presented component unit in the Statement of Activities are difference because: Governmental funds report capital outlays as expenditures while governmental activities report depreciation expense to allocate those expenditures over the life of the assets: Depreciation expense

(29,506)

Capital asset purchases capitalized

40,117

Change in net position - component unit

141

(28,278)

CITY OF EDMOND, OKLAHOMA OTHER SUPPLEMENTARY INFORMATION June 30, 2018

THIS PAGE INTENTIONALLY LEFT BLANK

142

STATISTICAL TAB

STATISTICAL SECTION

THIS PAGE INTENTIONALLY LEFT BLANK

STATISTICAL SECTION This part of the City of Edmond’s comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the city’s overall financial health Such statistical information includes: 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 REVENUE CAPACITY – These schedules contain information to help the reader assess the city’s most significant local revenue sources, gas and sales tax revenues. DEBT CAPACITY –These schedules present information to help the reader assess the affordability of the city’s current levels of outstanding debt and the city’s ability to issue additional debt in the future. 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 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.

143

CITY OF EDMOND, OKLAHOMA NET POSITION BY COMPONENT Last Ten Fiscal Years TABLE 1

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

$ 170,168,033

$ 186,474,825

$ 152,755,649

$ 165,301,769

$ 179,081,790

250,995,878

$ 255,086,502

66,653,990

66,138,688

66,787,140

65,438,617

77,480,959

74,547,850

72,918,625

62,143,563

52,414,977

64,158,270

4,246,686

(2,196,768)

16,285,449

17,858,558

17,186,870

19,574,722

(52,758,763)

(30,213,326)

(45,256,242)

(29,282,105)

Governmental activities Invested in capital assets, net of related debt Restricted Unrestricted Total governmental activities net assets

200,795,158

297,762,184

$ 286,812,679

$ 241,068,709

$ 250,416,745

$ 235,828,238

$ 248,598,944

$ 273,749,619

294,917,730

271,155,740

$ 287,016,739

304,920,919

$ 321,688,844

$ 129,103,305

$ 133,914,111

$ 130,307,669

$ 139,272,090

$ 152,656,891

166,264,500

178,128,755

$ 186,486,477

200,607,566

$ 212,908,949

10,899,446

11,431,161

11,102,953

12,737,861

13,161,823

12,665,793

10,164,237

11,122,065

12,555,515

23,678,437

61,950,616

63,999,452

61,237,819

62,638,338

63,641,836

65,352,440

85,095,133

115,979,906

137,187,395

147,188,629

$ 201,953,367

$ 209,344,724

$ 202,648,441

$ 214,648,289

$ 229,460,550

244,282,733

273,388,125

$ 313,588,448

350,350,476

$ 383,776,015

$ 299,271,338

$ 320,388,936

$ 283,063,318

$ 304,573,859

$ 331,738,681

367,059,658

429,124,633

$ 441,572,979

498,369,750

$ 499,721,628

77,553,436

77,569,849

77,890,093

78,176,478

90,642,782

87,213,643

83,082,862

73,265,628

64,970,492

87,836,707

66,197,302

61,802,684

77,523,268

80,496,896

80,828,706

84,927,162

32,336,370

85,766,580

91,931,153

117,906,524

$ 443,022,076

$ 459,761,469

$ 438,476,679

$ 463,247,233

$ 503,210,169

544,543,865

$ 600,605,187

655,271,395

$ 705,464,859

Business-type activities Invested in capital assets, net of related debt Restricted Unrestricted Total business-type activities net assets

Primary government Invested in capital assets, net of related debt Restricted Unrestricted Total primary government net assets

144

539,200,463

CITY OF EDMOND, OKLAHOMA CHANGES IN NET POSITION Last Ten Fiscal Years TABLE 2

2009 Expenses Government activities: General government Public safety Streets and highways Cultural, parks and recreation Health and welfare Economic development Interest on long-term debt Total governmental activities expenses Business-type activities: Electric operations Water operations Wastewater operations Sanitation operations Lake operations Drainage operations Golf course operations Cooperative purchasing services Transportation operations Economic development (payment to EEDA) Total business-type activities expenses Total primary government expenses Program Revenues Government activities: Charges for services: General government Public Safety Streets and highways Cultural, parks and recreation Health and welfare Operating grants and contributions Capital grants and contributions Total governmental activities program revenues

6,481,160 36,973,162 9,037,694 5,108,657 1,788,220 3,446,624 62,835,517

2010

10,973,617 37,861,256 10,628,715 5,460,930 2,568,303 3,303,605 70,796,426

2011

5,031,798 39,468,587 10,186,548 5,419,709 2,879,900 3,060,764 66,047,306

2012

7,354,958 38,482,564 10,413,380 5,163,602 3,154,842 107,884 2,825,422 67,502,652

2013

7,931,878 41,599,381 10,787,542 4,742,925 3,173,294 72,066 2,478,720 70,785,806

2014

6,356,170 43,468,774 12,768,311 5,986,917 1,629,424 603,679 2,316,938 73,130,213

2015

6,284,407 43,371,086 13,111,395 8,532,349 1,510,407 644,296 1,527,392 74,981,332

2016

9,167,431 47,309,195 15,151,636 7,067,735 1,639,425 576,728 1,828,757 82,740,907

2017

8,005,753 52,798,820 15,148,413 8,080,826 1,681,699 1,669,226 87,384,737

2018

6,888,698 52,589,259 16,312,414 7,861,311 1,915,800 1,261,914 86,829,396

58,763,582 15,248,010 5,744,638 5,999,807 1,251,923 822,836 1,931,136 58,693 430,000 90,250,625 $ 153,086,142

60,634,285 15,676,576 5,614,980 6,279,124 1,174,818 934,104 1,762,760 41,299 442,900 92,560,846 $ 163,357,272

65,755,607 16,360,858 5,351,923 6,673,527 1,255,232 953,486 1,914,021 64,215 412,000 98,740,869 $ 164,788,175

68,889,466 16,769,702 5,719,033 6,953,312 1,271,935 1,020,667 1,907,157 64,757 440,000 103,036,029 $ 170,538,681

72,308,154 16,804,561 6,495,234 6,797,466 1,289,412 887,642 1,928,258 62,844 470,000 107,043,571 $ 177,829,377

74,045,803 19,668,782 6,766,403 7,101,930 1,332,453 827,838 1,970,350 62,210 1,568,426 113,344,195 $ 186,474,408

75,458,152 19,838,405 7,138,969 6,876,040 1,351,272 916,310 2,079,169 63,641 1,594,042 115,316,000 $ 190,297,332

75,312,602 17,495,184 7,224,538 7,052,119 1,364,701 903,578 2,318,656 50,083 1,296,604 113,018,065 $ 195,758,972

80,292,128 18,724,132 9,664,933 7,157,872 1,453,667 1,034,170 2,201,686 50,897 1,692,550 122,272,035 $ 209,656,772

83,960,339 19,607,242 15,607,025 7,046,014 1,469,855 880,609 2,070,410 74,898 1,391,561 132,107,953 $ 218,937,349

7,108,368 821,340 104,770 538,937 4,036,616 17,642,392 30,252,423

7,370,016 831,720 228,097 514,150 689,333 4,878,847 16,112,303 30,624,466

7,604,193 946,769 7,200 719,757 1,167,687 5,547,074 5,176,962 21,169,642

7,353,230 1,220,778 84,870 528,606 1,140,753 5,475,330 5,232,894 21,036,461

7,421,872 1,246,610 11,670 536,743 1,135,962 5,682,716 10,668,747 26,704,320

7,934,422 1,267,798 10,200 518,039 931,947 5,498,584 7,002,940 23,163,930

7,945,577 1,213,991 101,877 410,001 916,854 5,867,612 10,227,919 26,683,831

7,259,773 1,188,473 23,422 161,863 869,997 6,040,401 10,189,610 25,733,539

9,352,670 1,115,725 13,140 127,378 859,838 6,552,097 10,309,777 28,330,625

7,828,234 1,384,049 11,010 149,433 861,021 5,965,300 8,034,550 24,233,597

(Continued)

145

CITY OF EDMOND, OKLAHOMA TABLE 2 (Continued)

2009 Business-type activities: Charges for services: Electric operations Water operations Wastewater operations Sanitation operations Lake operations Drainage operations Golf course operations Cooperative purchasing service Transportation operationsâ ą Operating grants and contributions Capital grants and contributions Total business-type activities program revenues Total primary government program revenues

2010

2011

2012

2013

2014

2015

2016

2017

2018

64,787,581 16,132,835 6,562,672 7,005,326 770,288 1,579,935 1,809,868 63,693 82,117 8,309,381 107,103,696 $ 137,356,119

63,074,399 15,309,866 6,231,244 7,246,382 764,675 1,630,168 1,711,166 53,641 2,717 3,537,407 99,561,665 $ 130,186,131

65,175,715 20,660,467 7,150,976 7,409,205 868,456 1,625,597 1,879,253 49,240 225,488 3,649,620 108,694,017 $ 129,863,659

71,935,412 22,701,466 8,554,554 7,577,025 880,719 1,758,988 1,997,414 80,190 72,975 1,665,577 117,224,320 $ 138,260,781

70,744,562 22,891,181 9,923,751 7,813,513 846,471 1,684,899 2,012,055 82,326 921,297 6,989,454 123,909,509 $ 150,613,829

76,674,353 22,931,346 11,423,965 8,065,999 963,845 1,703,753 1,997,086 74,389 290,470 328,568 4,189,645 128,643,419 $ 151,807,349

87,756,233 22,666,769 12,531,903 8,955,701 942,661 1,769,513 2,024,187 89,516 226,136 258,503 8,610,407 145,831,529 $ 172,515,360

91,957,403 25,066,076 13,377,584 9,128,560 1,078,431 1,876,533 2,018,439 63,524 262,869 308,943 6,492,648 151,631,010 $ 177,364,549

$ 96,627,510 28,766,025 15,752,873 9,199,752 1,108,201 1,791,313 1,988,412 91,286 282,098 1,167,903 4,640,646 161,416,019 $ 189,746,644

$ 96,084,847 28,945,349 18,329,678 9,341,779 1,072,563 1,823,590 1,976,462 92,670 325,498 1,259,751 8,111,664 167,363,851 $ 191,597,448

$ (32,583,094) 16,853,071 $ (15,730,023)

$ (40,171,960) 7,000,819 $ (33,171,141)

$ (44,877,664) 9,953,148 $ (34,924,516)

$ (46,466,191) 14,188,291 $ (32,277,900)

$ (44,081,486) 16,865,938 $ (27,215,548)

$ (49,966,283) 15,299,224 $ (34,667,059)

$ (48,297,501) 30,515,529 $ (17,781,972)

$ (57,007,368) 38,612,945 $ (18,394,423)

$ (59,054,112) 39,143,984 $ (19,910,128)

$ (62,595,799) 35,255,898 $ (27,339,901)

38,186,535 6,341,907 2,113,969 21,139,690 2,281,490 464,362 1,060,789 933,373 1,015,926 (669,672) 72,868,369

$ 38,693,158 8,631,688 2,107,465 18,765,363 2,142,557 464,292 1,118,273 626,649 1,097,844 3,311,003 76,958,292

$ 41,601,211 15,175,675 2,167,676 13,006,050 2,178,428 520,259 1,056,904 838,366 829,258 3,956,561 81,330,388

917,706 669,672 1,587,378 74,455,747

929,047 (3,311,003) (2,381,956) $ 74,576,336

2,479,408 3,514 (3,956,561) (1,473,639) $ 79,856,749

15,861,001 40,200,323 56,061,324

$ 17,904,180 36,762,028 $ 54,666,208

$ 18,734,589 33,782,259 $ 52,516,848

Net (Expense)/Revenue Government activities Business-type activities Total primary government net expense

General Revenues and Other Changes in Net Position Government activities: Taxes: Sales and use taxes - General government $ 29,572,916 Sales and use taxes - Public safety 5,014,947 Sales and use taxes - Park and recreation 1,671,649 Sales and use taxes - Capital improvements 10,029,894 Ad valorem property taxes Franchise and public service taxes 1,961,519 Hotel/motel taxes 364,232 694,962 Intergovernmental revenue not restricted to spec Investment income 2,515,207 Miscellaneous 216,763 Gain (loss) on sale of capital assets (1,696,494) Transfers-Internal activity 1,733,927 Total governmental activities 52,079,522 Business-type activities: Investment earnings 1,925,301 Miscellaneous 158,658 Special item - gain on asset impairment (64,102) Transfers - Internal activity (1,733,927) Total business-type activities 285,930 Total primary government $ 52,365,452 Change in Net Position Government activities Business-type activities Total primary government

$ $

19,496,428 17,139,001 36,635,429

$ $

27,484,883 4,748,676 1,582,892 9,497,352 1,886,700 345,208 675,890 1,294,216 252,382 1,751,799 49,519,998 1,113,106 1,029,229 (1,751,799) 390,536 49,910,534

9,348,038 7,391,355 16,739,393

$ $

28,917,747 4,914,564 1,638,188 9,829,129 2,304,910 344,968 981,492 1,299,271 242,196 1,066,444 51,538,909 991,181 176,357 (1,066,444) 101,094 51,640,003

6,661,245 10,054,242 16,715,487

$ $

31,299,351 5,366,325 1,788,775 12,798,391 2,106,551 391,664 894,306 822,610 293,668 3,475,226 59,236,867 780,709 506,071 (3,475,226) (2,188,446) 57,048,421

12,770,676 11,999,845 24,770,521

* 2014 Transportation operations was established as a BTA instead of Governmental Activity

146

$ $

34,403,578 5,870,777 1,956,926 19,569,255 2,157,871 421,979 1,101,004 608,693 346,998 2,795,080 69,232,161 481,283 260,120 (2,795,080) (2,053,677) 67,178,484

25,150,675 14,812,261 39,962,936

$ $

36,065,782 6,094,618 2,031,539 20,315,394 2,269,717 443,663 1,078,777 825,927 450,357 1,558,620 71,134,394 797,046 284,533 (1,558,620) (477,041) 70,657,353

21,168,111 14,822,183 35,990,294

$ $

37,777,579 6,318,872 2,106,291 21,062,907 2,327,317 453,376 1,158,392 815,222 727,652 501,074 73,248,682 659,037 171,402 (501,074) 329,365 73,578,047

24,951,181 30,844,894 55,796,075

$ $

CITY OF EDMOND, OKLAHOMA FUND BALANCES, GOVERNMENTAL FUNDS Last Ten Fiscal Years TABLE 3

2009 General Fund Reserved Unreserved Restricted Committed Assigend Unassigned Total general fund All Other Governmental Funds Reserved Restricted Committed Assigned Unassigned Unreserved, reported in: Designated Undesignated Special revenue funds Debt service funds Capital project funds Total all other governmental funds

GRAND TOTAL

3,573,228 2,005,534 5,578,762

7,329,922 -

2010

1,770,558 4,985,485 6,756,043

7,314,772 -

22,314,064 35,121,329 4,202,565 1,619,906 70,587,786

32,566,108 9,733,245 19,253,710 $ 68,867,835

81,228,464

$ 76,166,548

2011

1,637,707 2,702,404 5,150,248 9,490,359

65,078,915 2,879 1,617,875 -

66,699,669

75,623,878

2012

2,107,217 1,643,231 5,904,708 9,655,156

63,331,400 3,613 1,905,771 -

65,240,784

74,895,940

2013

2,644,344 1,822,138 6,770,667 11,237,149

74,827,114 7,352 3,593,792 -

78,428,258

89,665,407

NOTE: Beginning in FY 2011 the City implemented GASB Statement 54, changing the categories of Fund Balance

147

2014

2015

3,197,753 578,249 1,434,645 7,375,504 12,586,151

71,339,026 11,733 4,706,939 -

2,962,254 1,947,137 6,056,058 10,965,449

2016

2,889,481 1,120,870 3,142,639 7,152,990

59,241,768 8,902 5,867,853 (1,999,113)

61,708,614 11,530 5,077,958 -

$ 63,119,410

$ 70,272,400

76,057,698

66,798,102

88,643,849

77,763,551

2017

2,660,047 1,462,779 5,419,733 9,542,559

53,097,413 3,444 6,909,158 (50,046)

2018

3,364,662 2,720,331 6,731,159 12,816,152

59,247,663 3,175 7,684,589 (128,156)

59,959,969

66,807,271

69,502,528

79,623,423

CITY OF EDMOND, OKLAHOMA CHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS Last Ten Fiscal Years TABLE 4

2009

2010

2011

2012

2013

2014

2015

2016

46,289,406 1,995,831 364,232 7,292,287 4,980,864 2,375,687 1,063,724 2,402,614 581,882 67,346,527

$ 43,313,803 1,885,284 345,208 9,707,740 6,209,535 2,097,681 1,083,211 1,641,489 462,860 $ 66,746,811

$ 45,299,628 2,341,305 344,968 6,776,753 6,750,908 2,436,202 1,082,107 1,271,330 1,416,558 $ 67,719,759

$ 51,252,842 2,106,551 391,664 10,805,328 6,633,164 2,068,170 1,525,110 823,014 593,336 $ 76,199,179

$ 61,800,536 2,199,488 421,979 14,086,717 6,816,347 2,053,931 1,389,282 675,831 747,326 $ 90,191,437

$ 64,507,333 2,311,150 443,663 10,904,286 6,801,451 2,099,735 1,608,680 799,873 708,441 $ 90,184,612

$ 67,265,649 2,371,750 453,376 9,686,171 6,871,742 1,809,016 1,769,355 778,705 30,640 1,021,236 $ 92,057,640

5,380,418 35,183,104 3,333,924 3,777,614 1,549,305 18,312,319

2017

2018

Revenues Sales and use taxes Franchise and public service taxes Ad valorem taxes Hotel/motel taxes Intergovernmental Charges for services Fines and forfeitures Licenses and permits Investment income Interest earning on interfund loan Miscellaneous Total Revenues

67,782,101 2,281,490 464,362 7,450,843 6,311,280 1,641,283 1,412,552 845,306 85,876 1,488,927 89,764,020

$ 68,197,674 2,142,557 464,292 7,805,686 7,663,884 2,267,734 1,452,924 583,258 61,930 1,107,010 $ 91,746,949

5,937,535 49,182,140 6,354,224 4,696,132 1,384,677 576,728 19,924,453

71,950,612 2,173,068 520,256 7,262,029 6,981,728 1,628,740 1,446,443 768,467 823,154 93,554,497

Expenditures: General government Public safety Streets and highways Cultural, Parks and Recreation Health and welfare Economic development Capital Outlay Debt service: Principal Interest and fiscal charges Total Expenditures

4,839,694 36,047,474 3,098,018 3,684,873 2,313,124 12,507,394

3,445,000 3,498,724 74,480,408

3,595,000 3,355,705 $ 69,441,282

3,370,000 2,797,592 $ 70,022,707

4,095,000 2,852,354 $ 80,884,047

4,495,000 2,458,647 $ 94,088,737

5,988,514 2,509,629 $ 94,240,843

5,328,286 2,363,880 $ 104,930,101

6,364,851 2,164,759 96,585,499

6,529,309 2,005,000 $ 95,827,824

6,701,397 1,597,915 87,390,166

Excess of revenues over(under) expenditures

(7,133,881)

(4,056,231)

$ (12,872,461)

(6,821,479)

(4,080,875)

6,164,331

Transfers in Transfers out Capital contributions Proceeds from sale of judgment Transfer to escrow agent Bond issuance costs Bond discount Bond premium Bond proceeds Total other financing sources(uses)

$ 54,126,365 (50,815,362) $ 3,311,003

60,118,792 (58,046,824) 2,071,968

Net change in fund balances

(5,061,913)

(2,694,471)

5,382,504 37,953,732 3,920,453 3,904,840 2,624,963 10,068,623

(2,302,948)

5,239,393 37,732,090 2,897,088 4,494,049 4,164,797 296,685 19,112,591

(4,684,868)

6,339,565 40,600,947 2,909,278 4,858,017 4,350,720 28,076,563

(3,897,300)

6,170,708 42,576,993 1,374,487 5,152,798 4,436,186 26,031,528

6,812,288 45,697,743 1,255,580 5,235,819 4,843,989 33,392,516

6,111,202 49,487,104 5,377,604 5,047,946 1,426,948 19,842,711

6,317,255 51,433,553 1,661,448 5,122,238 5,488,301 9,068,059

Other financing sources(uses)

Debt service as a percentage of noncapital expenditures

12.6%

$ 54,742,916 (52,591,117) $ 2,151,799

$ 57,700,798 (55,064,383) (13,667,116) 13,900,000 $ 2,869,299

$ 62,738,138 (59,347,356) $ 3,390,782

$ 69,839,503 (66,985,905) (12,477,058)

$ 68,979,432 (67,435,112) (12,376,172)

$ 75,715,179 (75,214,105) (21,731,628)

1,325,224 26,965,000 $ 18,666,764

1,221,619 12,644,906 $ 3,034,673

2,467,717 20,755,000 $ 1,992,163

52,673,556 (53,343,228) $ (669,672)

$ 14,769,464

(1,021,558)

$ (10,880,298)

13.8%

9.9%

(542,672)

13.4%

566,351

12.0%

(1,294,086)

11.2%

148

8.9%

(7,491,151)

11.1%

(769,872)

11.2%

58,879,082 (54,922,521) $ 3,956,561 10,120,892

10.6%

CITY OF EDMOND, OKLAHOMA GOVERNMENTAL ACTIVITIES TAX REVENUES BY SOURCE Last Ten Fiscal Years TABLE 5

Fiscal Year

Ad Valorem Tax

Sales Tax

Use Tax

Franchise Tax

Liquor Tax

Hotel/ Motel Tax

Totals

2009

43,462,875

2,826,531

1,924,619

36,900

364,232

48,615,157

2010

41,155,192

2,158,611

1,848,384

36,900

345,208

45,544,295

2011

42,592,891

2,706,737

2,301,455

39,850

344,968

47,985,901

2012

48,573,889

2,678,953

2,066,159

40,392

391,664

53,751,057

2013

58,707,772

3,092,764

2,116,254

41,617

421,979

64,380,386

2014

60,946,182

3,561,151

2,228,284

41,433

443,663

67,220,713

2015

63,188,721

4,076,928

2,282,884

44,433

453,376

70,046,342

2016

63,419,072

4,363,029

2,231,857

49,633

464,362

70,527,953

2017

62,905,560

4,602,444

2,086,557

60,000

464,292

70,118,853

2018

64,137,982

6,920,359

2,116,876

56,192

520,259

73,751,668

149

CITY OF EDMOND, OKLAHOMA ELECTRICITY REVENUE BY CUSTOMER TYPE LAST TEN FISCAL YEARS TABLE 6

2010

2011

2012

2013

38,174,103 18,854,931 963,824 5,710,357

$ 37,654,681 17,716,150 859,249 5,364,308

$ 39,450,423 17,706,025 846,672 5,664,118

$ 44,917,923 20,110,914 879,907 6,029,794

$42,678,657 19,814,031 855,677 5,806,358

63,703,215

$ 61,594,388

$ 63,667,238

$ 71,938,538

$ 69,154,723

2009 Residential $ Commercial Large Commercial & Industrial Other

Totals

Source: City of Edmond Utility Customer Service Department

150

2014

2015

2016

2017

2018

45,419,073 21,837,857 920,361 6,578,831

$49,882,043 20,854,463 779,163 6,619,510

$54,344,401 26,186,761 1,136,853 8,267,848

$ 57,601,509 27,314,591 1,256,929 8,797,452

$ 56,980,187 27,173,997 1,192,418 8,530,719

74,756,122

$ 78,135,179

$ 89,935,863

$ 94,970,481

$ 93,877,321

CITY OF EDMOND, OKLAHOMA TOP TEN ELECTRIC CUSTOMERS LAST TEN YEARS TABLE 7

2009

% of Total

Value

% of Total

Value

% of Total

Value

% of Total

Value

% of Total

Rank

Value

2018

2017

Rank

% of Total

2016

Rank

Value

2015

Rank

% of Total

2014

Rank

Value

2013

Rank

% of Total

2012

Rank

Value

2011

Rank

% of Total

Value

Rank

Taxpayer

2010

Value

% of Total

City of Edmond

2,400,975

3.8%

2,185,377

3.5%

2,049,567

3.2%

2,076,083

2.9%

1,993,673

2.9% 1

2,307,101

3.1%

2,265,985

2.9%

$ 2,480,011

2.8%

2,265,360

2.4%

2,600,226

2.8%

Edmond Public Schools

2,127,093

3.3%

2,083,285

3.4%

1,693,712

2.7%

1,957,444

2.7%

1,847,810

2.7% 2

2,161,015

2.9%

2,437,296

3.1%

$ 2,577,853

2.9%

2,490,373

2.6%

2,577,610

2.7%

University of Central Oklahoma

2,194,299

3.4%

2,072,185

1,754,771

2.8%

1,789,302

2.5%

1,719,861

2.5% 3

1,078,747

1.4%

1,825,544

2.3%

$ 1,851,218

2.1%

1,377,662

1.5%

2,064,566

2.2%

Walmart

971,947

1.5%

827,417

3.4% 0.0% 1.3%

759,208

1.2%

851,814

1.2%

779,495

1.1% 4

806,165

1.1%

1,046,622

1.3%

811,535

0.9%

822,461

0.9%

1,139,731

1.2%

Mercy Health

0.0%

833,125

1.1%

674,400

0.7%

700,892

0.7%

889,319

0.9%

Integris Health Edmond

0.0%

349,842

0.5%

479,408

0.7% 5

511,748

0.7%

494,264

0.6%

310,761

0.3% 10

355,621

0.4%

579,351

0.6%

0.0%

291,105

0.3%

0.0%

419,144

0.4%

0.0%

358,587

0.4%

487,583

0.5%

OU Medical Center

426,035

0.7%

395,136

0.6%

315,069

0.5%

373,020

0.5%

360,258

0.5% 6

438,975

0.6%

Crest Foods

442,393

0.7%

411,060

0.7%

339,516

0.5%

375,621

0.5%

359,406

0.5% 7

389,113

0.5%

447,974

0.6%

Lowe's

337,108

0.5%

406,365

0.7%

330,251

0.5%

363,185

0.5%

342,856

0.5% 8

373,712

0.5%

452,313

0.6%

355,156

0.4%

362,301

0.4%

498,967

0.5%

0.0%

448,296

0.6%

379,453

0.4%

388,111

0.4% 10 $

460,090

0.5%

$ $ $ $ $ $

394,957 299,360 315,726 7,467,074

0.6% 0.0% 0.0% 0.5% 0.5% 11.7%

$ $ $ $ $ $

337,554 272,404 271,484 7,178,982

0.5% 8 $ 0.4% 10 $ 0.0% 9 $ 0.4% $ 0.0% $ 11.7% $

281,059 255,308 255,308 6,340,056

0.4% 0.4% 0.4% 0.0% 0.0% 10.0%

$ $ $ $ $ $

306,271 278,929 6,764,067

0.4% 0.4% 0.0% 0.0% 0.0% 9.4%

$ $ $ $ $ $

292,138 276,202 6,603,297

0.4% 9 0.4% 10 0.0% 0.0% 0.0% 9.5%

$ $ $ $ $ $

363,000 310,054 8,739,630

0.5% 0.4% 0.0% 0.0% 0.0% 11.7%

$ 491,979 $ $ $ $ $ 10,743,399

0.6% 0.0% 0.0% 0.0% 0.0% 13.7%

$ 393,246 $ $ $ $ $ 10,124,738

0.4% 0.0% 0.0% 0.0% 0.0% 11.3%

$ $ $ $ $ $

396,914 9,518,282

$ $ $ $ $ 11,716,587

0.0% 0.0% 0.0% 0.0% 0.0% 12.5%

63,703,216

61,594,388

Edmond YMCA Homeland Stores

Oak Tree Partners LLC Henderson Hills Baptist Church Target OSBI Totals Total Electric Revenue (see Table 6)

10 9

8 9 10

$ 63,667,237

9 10

$ 71,938,538

$ 69,154,723

Source: City of Edmond Utility Customer Service Department

151

$ 74,756,124

$ 78,135,179

$ 89,935,863

$ 94,970,481

0.4% 0.0% 0.0% 0.0% 0.0% 10.0%

$ 93,877,321

CITY OF EDMOND, OKLAHOMA ELECTRICITY RATES LAST TEN YEARS TABLE 8

Rate Code E01

E02

Rate Schedule R -1 Residential Customer Charge Energy Charge Shoulder - May First 600 kWh Add'l kWh over 600 Summer (Jun-Sep) First 1,400 kWh Add'l kWh over 1,400 Shoulder - Oct First 600 kWh Add'l kWh over 600 Winter (Nov-Apr) First 600 kWh Add'l kWh over 600 LIHEAP-1 Low Income Home Energy Assistance Program Rider Customer Charge Energy Charge Summer (Jun-Sept) First 600 kWh Add'l kWh over 600 Winter (Nov-Apr) First 600 kWh Add'l kWh over 600 Summer & Shoulder (May-Oct) Acceptance requires quaification by DHS prior to annual participation. GS-1 General Service Customer Charge Energy Charge Summer (Jun-Oct) All kWh Winter (Nov-May) First 1000 kWh Add'l kWh over 1000

Units

Edm Elec 01/01/2007 01/01/2010

Edm Elec 01/01/201011/01/13

Edm Elec 11/01/201311/1/2014

Edm Elec 11/01/201411/1/2015

Edm Elec 11/01/201511/1/2017

Edm Elec 11/01/201711/1/2018

$/mo

6.05

12.48

13.50

14.00

$/kWh $/kWh

0.0792 0.0569

0.0806 0.0806

0.0822 0.0822

0.0843 0.0843

0.0851 0.0851

$/kWh $/kWh

0.0795 0.0807

0.0806 0.0833

0.0822 0.0849

0.0843 0.0870

0.0851 0.0957

$/kWh $/kWh

0.0792 0.0569

0.0806 0.0806

0.0822 0.0822

0.0843 0.0843

0.0851 0.0851

$/kWh $/kWh

0.0792 0.0444

0.0806 0.0452

0.0822 0.0468

0.0843 0.048

0.0851 0.0485

2.06

3.08

3.58

$/kWh $/kWh

0.0795 0.0807

0.0806 0.0833

0.0822 0.0849

0.0843 0.0870

0.0851 0.0957

$/kWh $/kWh $/kWh

0.0792 0.0444 same as R-1

0.0806 0.0452 same as R-1

0.0822 0.0468 same as R-2

0.0843 0.048 same as R-2

0.0851 0.0485 same as R-2

$/mo

11.16

23.04

30.00

$/kWh

0.0993

0.1003

0.1004

0.1029

0.1055

$/kWh $/kWh

0.0897 0.0540

0.0864 0.0480

0.0865 0.0481

0.0886 0.0493

0.0908 0.0505

$/mo

(Continued)

152

CITY OF EDMOND, OKLAHOMA ELECTRICITY RATES LAST TEN YEARS TABLE 8

Rate Code E09*

E03

Rate Schedule GS-M General Service Medium * Customer Charge Capacity Charge Summer (Jun-Oct) Maximum Demand Winter (Nov-May) Maximum Demand Energy Charge Summer (Jun-Oct) All kWh Winter (Nov-May) All kWh GS-TOU General Service Time-of-Use Customer Charge TOU Meter Charge (Jun-Oct) Energy Charge Summer On-Peak Hours (2p-8p) Summer Off-Peak Hours Winter First 1000 kWh Add'l kWh over 1000

E08

PL-1 Power & Light Customer Charge Capacity Charge (new 25% ratchet) Summer (Jn-Oct) Winter (Nov-May) Energy Charge First 1,000,000 kWh All Add'l kWh

E06

PL-TOU Power & Light Time-of-Use Customer Charge TOU Meter Charge (Summer) Capacity Charge Summer Max Billing Demand On-Peak Hrs Demand Winter Winter (Nov-May) Energy Charge First 2,000,000 kWh/month All Additional kWh/month

Edm Elec 01/01/2007 01/01/2010

Edm Elec 11/01/201511/1/2017

Edm Elec 11/01/201711/1/2018

$/mo

50.00

$/kWh $/kWh $/kWh $/kWh

12.00 4.50

0.0525

Units

Edm Elec 01/01/201011/01/13

Edm Elec 11/01/201311/1/2014

Edm Elec 11/01/201411/1/2015

$/kWh $/kWh

$/mo $/mo

11.16 10.23

23.04 0

35.00 0

$/kWh $/kWh

0.2899 0.0540

0.2880 0.0480

0.3350 0.0481

0.3434 0.0491

0.3520 0.0503

$/kWh $/kWh

0.0897 0.0540

0.0864 0.0480

0.0865 0.0481

0.0882 0.0491

0.0904 0.0503

$/mo

69.35

72.00

80.00

$/kW $/kW

11.34 5.43

11.76 6.10

13.04 8.00

13.37 8.20

13.7 8.40

$/kWh $/kWh

0.0395 0.0365

0.0403 0.0403

0.0413 0.0413

0.0423 0.0423

$/mo $/mo

69.35 0

72.00 0

100.00 0

$/kW $/kW

1.15 10.19

1.21 10.71

1.52 13.5

1.54 13.64

1.58 13.68

$/kW

0.00

$/kWh $/kWh

0.0000 0.0000 (Continued)

153

CITY OF EDMOND, OKLAHOMA ELECTRICITY RATES LAST TEN YEARS TABLE 8

Rate Code E07

E04

Rate Schedule Units LPL-TOU Large Power & Light Time-of-Use Customer Charge $/mo Capacity Charge (new 25% ratchet) Summer (Jun-Oct) mo. Max. Demand $/kW On-Peak 2p-8p (except Sun.*) $/kW Winter (Nov-May) $/kW Energy Charge First 2,000,000 kWh/month $/kWh All Additional kWh/month $/kWh * for OG&E summer On-Peak, all weekends and 3 holidays are exempt. On Peak kWh/mo (June 1-Sept 30, 2-7:00 pm) $/kWh Off-Peak kWh/mo $/kWh Winter Season: All kWh $/kWh PS-ND-1 Public Schools Non Demand Customer Charge Energy Charge Summer (Jun-Oct) All kWh Winter (Nov-May) First 1000 kWh Add'l kWh over 1000

Edm Elec 01/01/2007 01/01/2010

Edm Elec 01/01/201011/01/13

Edm Elec 11/01/201311/1/2014

Edm Elec 11/01/201411/1/2015

Edm Elec 11/01/201511/1/2017

Edm Elec 11/01/201711/1/2018

147.98

73.50

600.00

650.00

0.42 7.81 4.40

5.21 0 5.21

6.5 0 6.50

6.63 0 6.63

6.79 0 6.79

0.0402 0.0365

0 0

0.1150 0.0343 0.0343

0.1302 0.0325 0.0325

0.1328 0.0332 0.0332

0.1361 0.034 0.034

$/mo

11.90

12.29

50.00

55.00

$/kWh

0.0990

0.1003

0.1028

0.1054

$/kWh $/kWh

0.0897 0.0537

0.0874 0.0518

0.0874 0.0577

0.0896 0.0591

0.0918 0.0606

0.0009

0.0027

0.00556

0.00842

0.01700

*GPWR Green Power Wind Rider (for all standard rates) Wind Selection Charge $/kWh (Customer selects 100% or fixed 100kWh blocks subject to WSC. This WSC rate is added to, and monthly FCA is subtracted from, the standard rate calculation for customer's selected quantity of wind power kWh.) *New Customers to GPWR as of 4/1/2017 As of 4/1/17 customers will be 100% kWh. Max of 100,000,000 kWh annual sales per year. Existing OAL-1 Outdoor Security Lighting Wood Pole Base Charge 7,000 Mercury Vapor * (71kWh/mo) 8.49 9,500 High Pressure Sodium (41kWh/mo) 6.86 14,000 Metal Halide - Directional 13.91 15,500 High Pressure Sodium 9.06 25,000 High Pressure Sodium 12.62 *Not available for new installations

Monthly KWH 5.52 5.66 14.37 8.24 11.64

7.49 5.86 12.91 8.06 11.62

Monthly KWH

8.49 6.86 13.91 9.06 12.62

(Continued)

154

CITY OF EDMOND, OKLAHOMA ELECTRICITY RATES LAST TEN YEARS TABLE 8

Rate Code

E05

Rate Schedule Additional Charges Extension of Secondary Circuit and Wood Pole 30 foot pole 35 foot pole 40 foot pole 45 foot pole 50 foot pole *with wiring requirement of 150 feet or less Underground wiring additional *If pole has to be hand set additional charge Ornamental Lighting Fixtures Base Charge 9,500 High Pressure Sodium on 24 foot fiberglass pole (41 kWh/mo) PM-1 Municipal Water Pumping Customer Charge Energy Charge Summer (Jun-Oct) Winter (Nov-May) TSL-LED-1 Traffic Signal Lights Customer Charge Energy Charge Per intersection (250 kWh/mo) OWD-1 Outdoor Warning Device (7-1-08) Customer Charge Energy Charge

Units

Edm Elec 01/01/2007 01/01/2010

Edm Elec 01/01/201011/01/13

Edm Elec 11/01/201311/1/2014

Edm Elec 11/01/201411/1/2015

Edm Elec 11/01/201511/1/2017

Edm Elec 11/01/201711/1/2018

5.37 7.24 8.01 8.97 9.93

2.85 4.32 5.1 5.72 6.18

4.37 6.24 7.01 7.97 8.93

5.37 7.24 8.01 8.97 9.93

0 0.00

1.52 170

3.46 354

0 0

22.84

12.5 12.5 41

18.84 41

22.84 41

$/mo

10.23

23.04

50.00

$/kW $/kW

0.0565 0.0552

0.0634 0.0480

0.0662 0.0500

0.0679 0.0513

0.0696 0.0526

$/mo

10.2 Monthly KWH 19.98

10.5 Monthly KWH 21.00

11.16 n/c

5.53 11.11 13.75 5.14 6.54 11.22 10.42 13.02

5.76 11.62 14.5 4.90 6.82 10.85 9.89 9.50

5.76 11.62 14.5 4.9 6.82 10.85 9.89 9.5

5.76 11.62 14.5 4.9 6.82 10.85 9.89 9.5 (Continued)

19.98

LM-1 Municipal Roadway & Area Lighting Base Charge 7,000 Lumens-MV Lamps *(71kWh/mo) 20,000 Lumens-MV Lamps *(161kWh/mo) 40,000 Lumens-MV Lamps *(272kWh/mo) 9,500 Lumens-High Pressure Sodium (41kWh/mo) 15,500 Lumens-High Pressure Sodium (71kWh/mo) 25,000 Lumens-HPS (Directional) (107kWh/mo) 25,000 Lumens-High Pressure Sodium (107kWh/mo) 14,000 Lumens-HMLamps (Directional) (71kWh/mo)

155

CITY OF EDMOND, OKLAHOMA ELECTRICITY RATES LAST TEN YEARS TABLE 8

Rate Code

Rate Schedule Units Sign & Underpass Lighting Fixtures 7,000 Mercury Vapor *** (71 kWh/mo) 9,500 High Pressure Sodium (41 kWh/mo) *Not available for new installations **When installed on High Mast Lighting System ***These are available for new installations only as sign lighting Additional Charges Standard Wood Pole Extention of Secondary Circuit and Wood Pole 30 foot pole 35 foot pole 40 foot pole 45 foot pole 50 foot pole *with wiring requirement of 150 feet or less Each additional 5 feet Standard Pole other than Wood 15 to 19 foot 20 to 24 foot 25 to 27 foot 28 to 32 foot 33 to 37 foot 38 to 42 foot 43 to 47 foot Ornamental Type Fixtures *7,000 Lumen MV w 19' Steel Pole (71 kWh/mo) 9,500 HPS w 19' Steel Pole (41 kWh/mo) 20,000 Lumen MV w 24' Steel Pole (161 kWh/mo) 25,000 Lumen HPS w 24' Steel Pole (107 kWh/mo)

Edm Elec 01/01/2007 01/01/2010

Edm Elec 01/01/201011/01/13

Edm Elec 11/01/201311/1/2014

Edm Elec 11/01/201411/1/2015

Edm Elec 11/01/201511/1/2017

Edm Elec 11/01/201711/1/2018

10.71 8.75

7.01 7.01

2.85 4.32 5.10 5.72 6.18

3.17 4.70 5.47 6.14 6.72

3.25

3.36

4.63 4.94 6.19 7.2 10.82 15.45 20.48

5.09 5.47 6.82 7.58 11.52 16.22 21.31

10.96 10.57 18.26 17.56

11.96 11.52 19.26 18.82

Note: Data is presented only for years including and subsequent to implementation of GASB 44. Note: Rate codes changed with system upgrade as of 12/2014. * Rate code E09 and GPWR for new customers became effective on 4/1/2017. Source: City of Edmond Utility Customer Service Department

156

CITY OF EDMOND, OKLAHOMA HISTORICAL UTILITY CUSTOMERS LAST TEN FISCAL YEARS TABLE 9 FYE June 30, 2018 2017 2016 2015 2014 2013 2012 2011 2010* 2009*

Electric 40,024 39,018 38,468 37,953 38,110 37,665 36,785 35,827 35,300 34,867

Water 30,619 29,798 29,286 28,770 28,747 28,137 27,551 27,027 26,756 26,434

Wastewater 31,346 30,584 30,112 29,983 29,958 29,260 28,793 28,321 28,413 28,062

*Prior to FYE June 30, 2011, numbers were based on calendar year.

157

CITY OF EDMOND, OKLAHOMA TEN LARGEST WATER and WASTEWATER CUSTOMERS LAST TWO YEARS Table 10 2017 % of Total Revenue

1 2 3

68,899 38,704 33,206

Revenue $523,507 325,414 289,509

4 8

13,713 10,703

100,250 78,247

0.39 0.3

5 6 7 9 10

14,769 15,288 11,668 10,622 10,175

96,569 94,870 79,236 65,556 63,933

0.37 0.37 0.31 0.25 0.25

2.03 1.26 1.12

Rank

Usage (gallons)

Rank

WATER CUSTOMERS University of Central Oklahoma Edmond Public Schools City of Edmond BVP Bryant Place Edmond Medical (OU Medical Ctr) YMCA The Greens Freedom Plaza TCG Edmond Villas at Stonebridge BRE Silver MF Second OK Rolling Green Apts Apple Village MH Est DW Wynn LLC Kickingbird Hills LLC

2018

1 2 3 4 5 6 7 8 9 10

Usage (gallons) 57,464 37,034 36,084 22,839 15,349 11,701 10,570 10,062 9,584 8993

Revenue $492,323 345,946 342,917 164,096 118,725 89,940 73,928 78,257 74,750 63919

% of Total Revenue 1.79 1.26 1.25 0.60 0.43 0.33 0.27 0.28 0.27 0.23

Comparisons to ten year prior were not available. City began tracking data in FY 17.

WASTEWATER CUSTOMERS University of Central Oklahoma Edmond Public Schools City of Edmond BRE Silver MF Second OK The Greens BVP Bryant Place Rolling Green Apts Olympic Club Apts Villas at Stonebridge II Villas at Stonebridge I BRE Silver MF Second OK Edmond Medical (OU Medical Ctr) Integris Health Edmond AE Sunset LLC Enclave Apartments Covell Village LL SL Copper Lake Estates, LLC

Usage (gallons)

% of Total Revenue

1 2 4

31,967 28,583 13,989

Revenue $186,842 132,284 85,483

15,288

61,383

0.42

3 6 7 8 9 10

14,769 11,213 8,132 4,475 4,063 5,015

91,479 40,967 39,491 36,740 35,762 31,156

0.62 0.28 0.27 0.25 0.24 0.21

Comparisons to ten year prior were not available. City began tracking data in FY 17.

158

1.27 0.9 0.58

Usage (gallons) 1 2 3 4 5 6 7 8 9 10

37,079 25,563 20,727 14,404 11,368 20,487 17,343 10,871 7,407 7,433

Revenue $244,102 172,819 130,147 114,703 104,703 94,569 92,775 87,559 73,149 70,354

% of Total Revenue 1.40 0.99 0.75 0.66 0.60 0.54 0.53 0.50 0.42 0.40

CITY OF EDMOND, OKLAHOMA SALES TAX RATES OF DIRECT AND OVERLAPPING GOVERNMENTS Last Ten Fiscal Years TABLE 11 2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

City Oklahoma County State of Oklahoma

3.25% 0.00% 4.50%

3.75% 0.00% 4.50%

Total

7.75%

8.25%

159

CITY OF EDMOND, OKLAHOMA TAXABLE SALES BY CATEGORY LAST TEN FISCAL YEARS TABLE 12 2009 $

Agri, forestry, fishing hunting Mining, oil and gas extraction Utilities Construction Mfg‐foods, textile, tobacco Mfg‐building, books, glass, brick, concrete Mfg‐iron,steel,sign,construction equipment, hardware Wholesale trade‐Automobiles, tires Wholesale trade‐Furniture, home furnishings Wholesale trade‐Lumber, brick, roofing, siding Wholesale trade‐Office & medical equipment, hardware, electrical appliances Wholesale trade‐Heat & Air, plumbing, farm, garden, transportation, industrial equipment Wholesale trade‐Sporting goods, office supplies, drugs, apparel Wholesale trade‐Grocery, meat, fish, fruit, dairy Wholesale trade‐Chemical, plastics, paint, books, florists, farm supplies Retail trade‐cars, boats, tire, parts Retail trade‐furn, household, computer, cameras Retail trade‐hardware, building materials, paint, nursery Retail trade‐grocery Retail trade‐wine, beer, liquor stores Retail trade‐health, pharmacies, Retail trade‐gasoline with conv. Stores Retail trade‐clothing, shoes, jewelry Retail trade‐sporting goods, hobby, sewing, musical Retail trade‐dept stores, gen merchandise Retail trade‐florist, office supplies, pet, art, vending, used merch. Transportation and warehousing‐towing, freight, trucking Transportation and warehousing‐warehousing and storage Information‐newspaper, cable, wireless Finance and insurance Real estate and rental and leasing Professional, scientific, and technical services Adm. & support and waste mangement and remediation services Educational services Health care and social assistance‐doctors, chiropractors, eye, family services Arts, Entertainment, and Recreation‐golf, fitness, bowling, museums Accommodation and Food Services ‐Hotels Accommodation and Food Services ‐Restaurants, Bars Other Services (Auto, Electronic repairs, Salons, funeral Public Administration‐Regulation of Transportation Programs Unclassified

2010

98,379 64,906 2,962,614 36,612 318,134

4,257,938 -

2,311,014 -

2011

42,304 1,736 2,904,097 36,107 213,983

2012

31,739 46,492 2,807,077 32,830 211,016 2,554,821 -

2013*

56,292 66,585 2,969,951 69,507 303,993 3,149,901 -

20,050 5,204 2,185,463 50,217 110,738 1,075,374 759,798 62,456 49,323 215,711

2014 $

28,889 6,252 3,609,167 75,608 254,580 1,170,308 568,332 69,034 115,615 199,677

2015 $

30,001 4,025 3,844,159 70,085 261,041 1,260,151 568,108 89,854 55,968 232,700

2016 $

60,000 23,069 4,303,732 93,837 170,026 1,241,830 472,631 57,888 52,671 306,025

2017 $

29,640 4,398 4,185,086 76,133 135,775 1,212,959 546,054 65,600 52,147 419,681

2018 $

16,591 9,501 4,206,823 82,632 129,840 1,113,894 460,297 63,201 67,191 443,578

631,941

708,417

643,930

658,976

627,313

813,222

1,918,186 224,288 119,956

2,229,790 228,999 111,759

2,171,456 346,309 113,885

2,062,887 377,292 125,520

2,208,374 379,660 100,506

2,487,528 425,503 92,258

2,394,461 4,676,327 3,391,516 5,306,478 4,515,923 852,484 1,495,670 8,427,080 59,514 2,107,808 9,858 493,928 22,068 -

2,584,712 4,417,446 3,801,497 5,613,523 4,697,973 997,628 1,522,093 8,509,668 69,007 2,063,197 7,492 489,984 25,167 -

3,105,063 4,967,601 4,475,165 6,193,801 5,197,419 1,085,814 1,631,106 8,974,710 62,873 2,116,694 11,467 633,883 25,149 -

179,414 1,180,533 3,667,788 7,274,378 5,730,617 917,293 1,447,945 316,627 2,213,029 1,751,700 11,359,340 1,975,995 168,612 19,378 2,267,040 51,315 950,089 440,391 39,309 42,272

214,533 1,094,582 2,972,839 7,228,993 5,680,279 838,136 1,391,971 477,195 2,135,798 1,721,282 12,471,298 2,145,195 179,183 26,904 2,149,341 108,285 951,448 282,425 33,548 36,647

204,729 1,208,563 3,660,727 6,395,382 6,175,940 902,803 1,352,040 640,540 2,138,160 1,777,882 13,097,434 2,054,285 337,113 20,387 2,185,157 23,316 957,366 227,880 40,869 42,600

186,588 1,310,926 3,241,497 6,613,579 6,197,197 982,101 1,529,810 577,858 2,099,602 1,674,319 13,351,178 1,991,553 25,110 15,928 2,128,055 24,089 1,109,411 161,879 62,411 23,418

179,617 1,260,293 2,335,148 7,199,258 5,882,182 1,064,510 1,676,903 557,585 2,131,216 1,486,384 13,398,886 1,970,945 33,528 14,079 2,015,693 19,850 964,881 151,350 61,858 18,908

187,204 1,245,663 3,118,045 6,709,847 6,010,389 1,078,925 1,834,304 532,878 2,201,179 1,442,871 13,984,416 2,003,809 39,149 36,409 1,917,041 33,361 769,007 861,636 59,464 43,774

259,991

248,369

255,986

272,925

23,351

21,599

15,736

15,840

22,207

32,915

163,467 308,276 891,543 392,206

155,084 285,609 786,322 401,687

148,431 304,701 804,873 459,313

117,573 358,175 929,140 472,940

323,703 41,463,130

530,895 42,987,561

677,950 47,925,677

764,894 611,217 7,092,658 702,250 (139) 667,328 61,376,116

865,127 1,410,566 6,901,495 707,734 138 429,028 63,464,669

1,009,240 903,853 7,565,202 793,278 562,687 64,162,993

947,246 463,927 8,346,711 831,390 88 63,077,969

975,814 521,934 8,831,233 861,636 560 65,745,524

2,669,621 5,048,412 3,217,337 5,296,659 4,408,032 796,361 1,407,880 8,430,100 33,001 2,115,513 12,369 533,356 23,696 -

192,498 43,938,901

448,675 476,835 7,718,137 692,889 (13) (20,517) 58,761,128

(1) The source for taxable sales by category is the Oklahoma Tax Commission. This amount is the gross amount before the State retains portion for revolving fund. Note: in FY 2013, the Oklahoma Tax Commission changed their SIC codes and now use NAICS codes. These new codes have more categories than in previous years. We matched previous years as best that we could to match to the new codes descriptions.

160

CITY OF EDMOND MONTHLY SALES TAX REVENUES COMPARISON LAST FOUR FISCAL YEARS TABLE 13

Month July August September October November December January February March April May June TOTAL

Sales Tax Rate 3.75% 3.75% 3.75% 3.75% 3.75% 3.75% 3.75% 3.75% 3.75% 3.75% 3.75% 3.75%

2015 Sales Tax Revenues $ 5,421,323 5,337,927 5,378,441 5,561,355 5,259,576 5,101,358 5,338,209 5,629,032 4,949,144 4,543,986 5,239,407 5,269,219 $ 63,028,977

Sales Tax Rate 3.75% 3.75% 3.75% 3.75% 3.75% 3.75% 3.75% 3.75% 3.75% 3.75% 3.75% 3.75%

2016 Sales Tax Revenues $ 5,270,209 5,830,639 5,394,795 5,615,741 5,358,088 5,256,228 5,392,339 5,491,711 4,893,519 4,930,408 5,312,763 5,065,937 $ 63,812,377

Source: Oklahoma Tax Commission

161

Sales Tax Rate 3.75% 3.75% 3.75% 3.75% 3.75% 3.75% 3.75% 3.75% 3.75% 3.75% 3.75% 3.75%

2017 Sales Tax Revenues $ 5,348,556 5,249,321 5,401,153 5,458,570 5,267,714 5,313,129 5,386,949 5,367,870 4,925,300 4,777,946 5,228,042 5,257,846 $ 62,982,396

Sales Tax Rate 3.75% 3.75% 3.75% 3.75% 3.75% 3.75% 3.75% 3.75% 3.75% 3.75% 3.75% 3.75%

2018 Sales Tax Revenues $ 5,525,826 5,402,310 5,477,654 5,524,910 5,336,174 5,327,875 5,666,647 5,610,186 5,007,835 4,867,821 5,575,678 5,321,730 $ 64,644,646

CITY OF EDMOND HISTORICAL SALES TAX REVENUES LAST TEN FISCAL YEARS TABLE 14 Fiscal Year Ended June 30, 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009

Sales Tax Revenues (1) Rate 3.75% $64,644,646 3.75% 62,982,395 3.75% 63,812,377 3.75% 63,028,977 3.75% 60,431,416 3.75% 58,759,119 3.25%, 3.75% (3) 46,164,747 3.25% 42,536,197 3.25% 41,069,454 3.25% 43,613,694 (1)

3/4 Cent $12,928,929 12,596,479 12,762,475 12,605,795 12,086,283 11,751,824 10,389,380 9,816,045 9,477,566 10,064,699

(1) Source: Oklahoma Tax Commission. Sales Tax Revenues returned to the City consist of Sales Tax Collections plus earned interest less monies allocated to the Revolving Fund. (2) Calculated Sals Tax Revenues available for the appropriation by the City to the Authority as security for the Bonds. See "SECURITY FOR THE BONDS - Pledge of Revenues" herein. (3) Sales Tax Rates were 3.25% for 10 months then 3.75% for 2 months.

162

(2)

Percentage Increase 2.64% -1.30% 1.24% 4.30% 2.85% 13.11% 5.84% 3.57% -5.83% 7.00%

CITY OF EDMOND, OKLAHOMA RATIO FOR OUTSTANDING DEBT BY TYPE Last Ten Fiscal Years TABLE 15

Governmental Activities Revenue Capital Fiscal Bonds Leases Payable Payable Year

Business-Type Activities Revenue Captial Bonds Notes Leases Payable Payable Payable

Total Primary Government

% of Personal Income

Total Debt Per Capita*

2009

72,985,000

58,685,000

22,186,681

50,761

153,907,442

6.70%

1,911

2010

69,390,000

54,590,000

21,156,506

145,136,506

5.13%

1,783

2011

66,845,000

50,695,000

20,096,707

137,636,707

5.07%

1,691

2012

62,750,000

46,625,000

19,010,890

128,385,890

3.96%

1,536

2013

73,260,000

42,400,000

17,891,382

133,551,382

3.97%

1,582

2014

67,821,392

37,895,094

17,521,569

123,238,055

3.79%

1,447

2015

62,153,107

30,443,608

16,275,467

108,872,182

3.18%

1,239

2016

55,788,256

28,716,894

14,999,365

99,504,515

2.91%

1,132

2017

49,258,947

66,101,745

13,688,263

129,048,955

3.77%

1,469

2018

42,557,550

227,866,052

12,347,134

282,770,736

7.15%

3,066

* Population is calculated at calender year end prior to fiscal year. See Table 16

163

CITY OF EDMOND, OKLAHOMA RATIO OF NET GENERAL BONDED DEBT TO ASSESSED VALUE AND NET BONDED DEBT PER CAPITA Last Ten Fiscal Years TABLE 16

Net * Assessed Value

Less Debt Service Funds

Gross Bonded Debt

Net Bonded Debt

Ratio of Net Bonded Debt to Assessed Value

Net Bonded Debt Per Capita

Fiscal Year

Population

2009

80,535

(5)

762,213,816

0.00%

2010

81,395

(5)

786,787,845

0.00%

2011

81,405

(6)

806,652,399

0.00%

2012

83,591

(7)

824,050,837

0.00%

2013

84,404

(7)

854,180,987

0.00%

2014

85,190

(7)

902,595,017

0.00%

2015

87,877

(7)

961,313,411

0.00%

2016

89,065

(7)

1,017,637,106

0.00%

2017

89,431

(7)

1,060,520,613

0.00%

2018

92,232

(7)

1,089,893,199

0.00%

Note: Details regarding the city's outstanding debt can be found in the notes to the financial statements. * Oklahoma County Assessor's Report 2017 (5) City of Edmond, GIS/Planning Department 2001-2010 Based on the Amercian Community Survey Avg HH, and Building Permits since 2000 Census (6) 2010 Census (7) City of Edmond Planning Department, estimate based on the 2010 Census, current Building Permits, the Edmond Economic Development Authority Average House Hold (HH) size, and the American Community Survey Occupancy Rate

164

CITY OF EDMOND, OKLAHOMA COMPUTATION OF DIRECT AND OVERLAPPING DEBT June 30, 2018 TABLE 17

Jurisdiction Direct - City of Edmond Overlapping: Edmond School District Oklahoma County

Total

Net (1) Debt Outstanding $

411,198,692

Percentage (2) Applicable to City of Edmond

Amount Applicable to City of Edmond

100.00%

$411,198,692

166,100,000

57.08%

94,807,349

34,031,162

14.39%

4,895,717

$611,329,854

(1) City of Edmond does not have any GO Bonds. Amount shown is direct debt for governmental activities. (2) Determined by ratio of assessed valuation of property subject to taxation in overlapping unit to valuation of property subject to taxation in the City of Edmond.

165

$510,901,758

CITY OF EDMOND, OKLAHOMA LEGAL DEBT MARGIN INFORMATION Last Ten Fiscal Years TABLE 18

Debt limit

Total net debt applicable to limit Legal debt margin Total net debt applicable to the limit as a percentage of debt limit

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

76,221,382

$ 78,678,785

$ 80,665,240

$ 82,405,084

$ 85,418,099

$ 90,259,502

$ 96,131,341

$ 1,017,637,106

$ 1,060,520,613

$ 1,089,893,199

76,221,382

$ 78,678,785

$ 80,665,240

$ 82,405,084

$ 85,418,099

$ 90,259,502

$ 96,131,341

$ 1,017,637,106

$ 1,060,520,613

$ 1,089,893,199

0.00%

Legal Debt Margin Calculation for Fiscal Year 2018 Net assessed valuation

$ 1,089,893,199

Debt limit (10% of total assess value) Debt applicable to limit: General obligation bonds

$ 108,989,320 $

Less: Street bonds outstanding

Total net debt applicable to limit

Legal debt margin

$ 108,989,320

Note: Article 10, Section 26 of the Constitution of the State of Oklahoma limits municipal debt to 10% of net assessed valauation. Article 10, Section 27 of the Constitution of the State of Oklahoma limits municipal debt to non-utility or non-street purposes.

166

CITY OF EDMOND, OKLAHOMA THE EDMOND PUBLIC WORKS AUTHORITY UTILITY SYSTEMS DIVISION - PLEDGED REVENUE COVERAGE Last Ten Fiscal Years TABLE 19

Eligible Revenues

Eligible Expenses1

Net Revenue Available for

Maximum Annual

Revenue Bond

Debt Service

Coverage

2009 Sales Tax and Utility Revenue Bonds Series 2001, 2003, 2004, 2005 Utility Revenue Bonds Series 1998, 1999, 2003, 2004, 2005 OWRB Series 2005, 2006

106,361,912 123,109,588 123,109,588

81,058,262 74,052,201 74,052,201

25,303,650 49,057,387 49,057,387

6,822,981 8,443,233 8,443,233

3.71 5.81 5.81

2010 Sales Tax and Utility Revenue Bonds Series 2001, 2003, 2004, 2005 Utility Revenue Bonds Series 1998, 1999, 2003, 2004, 2005 OWRB Series 2005, 2006

102,344,442 118,119,652 118,119,652

81,867,810 74,845,596 74,845,596

20,476,632 43,274,056 43,274,056

6,822,981 8,682,517 8,682,517

3.00 4.98 4.98

2011 Sales Tax and Utility Revenue Bonds Series 2001, 2003, 2004, 2005 Utility Revenue Bonds Series 1998, 1999, 2003, 2004, 2005 OWRB Series 2005, 2006

111,304,738 127,646,147 127,646,147

91,610,054 83,031,312 83,031,312

19,694,684 44,614,835 44,614,835

6,990,269 8,443,233 8,443,233

2.82 5.28 5.28

2012 Sales Tax and Utility Revenue Bonds Series 2001, 2003, 2004, 2005, 2010 Utility Revenue Bonds Series 1998, 1999, 2003, 2004, 2005 OWRB Series 2005, 2006

111,304,738 127,646,147 127,646,147

91,610,054 83,031,312 83,031,312

19,694,684 44,614,835 44,614,835

6,990,269 8,443,233 8,443,233

2.82 5.28 5.28

2013 Sales Tax and Utility Revenue Bonds Series 2004, 2005, 2010, 2012, 2013 Utility Revenue Bonds Series 2003, 2004, 2005 OWRB Series 2005, 2006

124,463,512 144,078,716 144,078,716

109,885,068 90,796,258 90,795,258

14,578,444 53,282,458 53,282,458

8,552,264 8,443,233 8,443,233

1.70 6.31 6.31

2014 Sales Tax and Utility Revenue Bonds Series 2005, 2010, 2012, 2013, 2014 Utility Revenue Bonds Series 2005, 2014 OWRB Series 2005C, 2013 General Sales Revenue Note

131,616,376 152,179,138 152,179,138

115,686,623 94,999,819 94,999,819

14,578,444 53,282,458 53,282,458

8,552,264 8,399,737 8,399,737

1.70 6.34 6.34

2015 Sales Tax and Utility Revenue Bonds Series 2010, 2012, 2013, 2014 and 2014B Utility Revenue Bonds Series 2014 and 2015 OWRB Series 2005C, 2013 General Sales Revenue Note

143,118,338 164,070,328 164,070,328

125,701,219 97,069,562 97,069,562

17,417,119 67,000,766 67,000,766

7,455,266 6,954,274 6,954,274

2.34 9.63 9.63

2016 Sales Tax and Utility Revenue Bonds Series 2010, 2012, 2013, 2014 and 2014B Utility Revenue Bonds Series 2014 and 2015 OWRB Series 2005C, 2013 General Sales Revenue Note

138,403,411 138,403,411 138,403,411

103,214,885 94,663,331 94,663,331

35,188,526 43,740,080 43,740,080

7,455,266 6,594,274 6,594,274

4.72 6.63 6.63

2017 Sales Tax and Utility Revenue Bonds Series 2010, 2012, 2013, 2014 and 2014B Utility Revenue Bonds Series 2014 and 2015 OWRB Series 2005C, 2013 General Sales Revenue Note

149,288,469 149,288,469 149,288,469

108,783,722 100,087,120 100,087,120

53,091,867 61,788,469 82,767,002

7,455,266 8,079,527 6,954,274

7.12 7.65 11.90

2018 Sales Tax and Utility Revenue Bonds Series 2010, 2012, 2013, 2014, and 2014B Utility Revenue Bonds Series 2014, 2015, 2016, and 2017 OWRB Series 2005C, 2013 General Sales Revenue Note

153,239,493 153,239,493 153,239,493

115,008,242 106,484,620 106,484,620

50,818,371 59,341,993 80,320,526

7,455,266 18,244,923 6,954,274

6.82 3.25 11.55

Excludes depreciation and amortization expense.

167

CITY OF EDMOND, OKLAHOMA DEMOGRAPHIC AND ECONOMIC STATISTICS Last Ten Calendar Years TABLE 20

Calendar Year

Population (1)*

Personal Income (in thousands) (2)

Per Capita Personal Income

Median Age of Population (2)

Percent with College Degree or Higher (5)

School Enrollment (3)

Unemployment Rate (4)

2008

80,364

2,664,789,876

33,159

34.7

48.6

20,786

4.6%

2009

80,535

2,798,349,645

34,747

34.9

51.4

21,358

4.8%

2010

81,395 *

2,712,895,350

33,330

35.0

50.1

21,960

4.2%

2011

81,405

3,157,944,165

38,793

34.2

47.3

22,472

4.0%

2012

83,591

3,327,924,892

39,812

35.2

46.6

23,089

4.4%

2013

84,404

3,217,818,096

38,124

35.0

46.5

23,484

3.7%

2014

85,190

3,319,598,730

38,967

34.9

49.4

23,965

3.5%

2015

87,877

3,715,132,785

40,495

35.7

51.2

24,407

4.4%

2016

89,065

3,783,199,593

42,303

36.1

53.3

24,269

4.1%

2017

92,232

3,955,105,710

41,845

36.2

54.7

25,242

3.5%

Note: Information was unavailable for the cells with N/A . Sources: (1) City of Edmond, GIS/Planning Department 2001-2011 Based on the American Community Survey Avg HH, and Building Permits to date * Based on 2010 Census Bureau data (2) Edmond Economic Development Authority (EEDA) (3) Edmond School District (4) www.bls.gov (5) Edmond Economic Development Authority (EEDA). Information for previous years not available.

168

CITY OF EDMOND, OKLHAOMA PRINCIPAL EMPLOYERS Current and Ten Years Ago TABLE 21

2008

Employer

Product/Business

Rank Employees

2018

% of Total

Rank

Employees

% of Total

Edmond Public Schools

Public Education

2,466

39.6%

2,561

37.6%

University of Central Oklahoma

Higher Education

1,123

18.1%

1,423

20.9%

City of Edmond

Local Municipality

649

10.4%

714

10.5%

Mercy Edmond I-35

Clinic and Wellness Center

449

6.6%

INTEGRIS Health Edmond

Hospital

327

4.8%

Petra Industries

Electronic Distribution

300

4.8%

325

4.8%

Hospital

550

8.8%

288

4.2%

275

4.0%

OU Medical Center

Crest Foods

Grocery Store Chain

Adfitech

Quality Control for Mortgage Industry

338

5.4%

271

4.0%

Pelco Products

Traffic, Decorative, & Utility Hardware

118

1.9%

172

2.5%

Remy International

Auto Parts Manufacturing

338

5.4%

0.0%

SSJ Technologies

Plastic Card Technologies

1.2%

Cox Communications

Communication Services

261

4.2%

6,220

100%

6,805

Totals

Source: Edmond Economic Development Authority 1

Formerly Edmond Medical Center Formerly Unit Parts

169

100%

CITY OF EDMOND, OKLAHOMA FULL-TIME EQUIVALENT BUDGETED CITY GOVERNMENT EMPLOYEES BY FUNCTION/PROGRAM Last Ten Fiscal Years TABLE 22

Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Year Year Year Year Year Year Year Year Year Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Function/Program General Government: Managament Services City Clerk/Governmental Relations Finance Treasurer Human Resources IT Legal Other Engineering Planning CDBG Building Community Image Convention & Visitors Bureau Downtown Community Center Total General Government

5 4 8 2 7 16 8 24 14 6 1 15 7 2 2 121

5 4 8 2 7 16 8 26 14 6 1 15 5 2 2 121

4 4 8 2 7 16 8 26 14 6 1 15 5 2 2 120

5 4 8 2 7 16 8 26 14 6 1 15 5 2 2 121

5 4 8 2 7 16 8 30 14 7 1 15 6 2 1 126

5 2 8 1 6 17 8 32 17 7 1 15 6 2 1 128

5 2 8 1 5 17 7 32 18 7 1 16 9 3 1 132

6 2 8 1 5 17 6 32 18 7 1 16 10 3 1 133

6 2 8 0 7 18 7 31 16 6 1 19 11 4 1 137

6 2 7 0 8 19 4 33 23 7 1 16 14 4 1 145

114 22 10

114 23 9

123 25 9

120 30 7

120 31 9

122 31 9

114 7 2 24 8 301

115 7 2 24 8 302

115 10 2 24 8 305

117 5 2 24 8 313

117 5 2 24 7 312

119 5 2 26 9 321

120 5 2 31 9 329

25 5 14 44

25 5 12 42

25 5 13 43

25 6 12 43

25 7 11 43

25 7 10 42

25 8 10 43

41 41

42 42

46 46

Utilities: Electric Water Solid Waste Wastewater Drainage Utility Customer Service Central Warehousing Total Public Works

48 42 21 21 5 38 3 178

48 42 21 22 5 38 3 179

49 42 20 22 5 38 3 179

49 42 20 22 5 39 3 180

49 42 20 24 5 39 3 182

50 44 20 22 5 42 3 186

50 44 19 26 5 43 3 190

49 50 22 31 5 46 3 206

54 46 22 31 5 47 3 208

Total Full-Time Budgeted Employees by Function/Program

685

686

685

686

693

700

716

720

752

771

Public Safety and Judiciary: Police: Officers Civilians Animal Welfare Fire: Firefighters & Officers Civilians Emergency Management Central Communications/EM Municipal court Total Public Safety and Judiciary Transportation: Streets Traffic Public Works Administration Cultural, Parks and Recreation: Parks and Recreations Total Cultural, Parks and Recreation

Other includes, Urban Forestry, Vehicle Maintenance, Marketing and Facility Maintenance Source: City of Edmond Human Resource Dept. NOTE: Data is presented only for years including and subsequent to issuance of GASB 44

170

CITY OF EDMOND, OKLAHOMA Capital Asset Statistics by Function/Program Last Ten Fiscal Years TABLE 23

FY 2008

FY 2009

FY 2010

FY 2011

FY 2012

FY 2013 FY 2014

FY 2015

FY 2016

FY 2018

1 138

1 139

1 144

1 147

1 148

1 152

1 155

5 6 1 29

5 5 2 29

5 5 2 35

5 5 2 44

625 4,463 95

627 4,954 96

627 5,421 99

487 5,542 99

487 5,652 99

494 6,123 99

484* 6,190 100

485 6,339 99

486 6,232 102

489 6,310 103

4,949 23 24 13 1 1 1 3

4,960 23 24 16 1 1 1 3

5,108 24 31 16 1 1 1 3 1

3 3

8 -

12 0

15,165 4

15,599 4

15,654 4

480 4,092

484 4,129

493 4,315

500 4,392

502 4,388

507 4,473

516 4659

523 4827

526 4879

526 5108

20,000 11,000

22,000 11,000

22 431 128 9,000

22 438 133 9,000

22 449 136 9,000

22 449 144 9,000

Function/Program Police: Stations Patrol units Fire : Stations Engines Quint Vehicles Refuse Collection: Collection trucks Streets: Street miles 1 Streetlights Traffic signals Parks and Recreation: Acreage Playgrounds Baseball/softball diamonds Soccer/football fields Community Center Pool Golf course Disc Golf courses Splash Pad Public Transportation:2 Buses Trolley Cemetery: Plots Maintained 3 Vehicles & Machinery Water: Water mains (miles) Fire hydrants Storage capacity (thousands of gallons) Clearwells and Tower Arcadia Lake Wastewater: Sanitary sewers (miles) Force Main Sanitary sewers (miles) Gravity Main Storm sewers (miles) Treatment capacity (thousands of gallons)

22 413 105 9,000

22 416 107 9,000

8 0

22 416 111 9,000

20,000 11,000 22 423 115 9,000

20,000 11,000 22 424 118 9,000

20,000 11,000 22 429 118 9,000

Source: City of Edmond Departments (1) Street miles included private roads for years prior to 2012 (2) Edmond's Public Transportation began July, 1, 2009, COTPA owns the buses, Edmond maintains them (3) Amounts have been restated to reflect number of plots maintained * GIS dept updated their way of tracking mileage and counted 1 side of street rather than both sides on a few unmarked streets

171

CITY OF EDMOND, OKLAHOMA Operating Indicators by Function/Program Last Ten Fiscal Years TABLE 24 Function/Program

2009

2010

Physical Arrests Parking Violations

2,071 1,643

2,543 1,462

2011 2,658 1,547

2012 2,728 1,230

2013 2,931 984

2014 2,336 747

2015 2,220 1,008

2016 2,527 1,063

2017 2,966 861

2018 2,756 1,132

Traffic Violations

18,821

17,409

17,480

14,196

14,151

13,311

10,751

11,152

11,460

8,205

Emergency Responses Fires Extinguished Inspections

5,692 260 1,191

5,745 238 1,057

5,890 214 937

6,793 304 1,096

5,984 223 904

6,810 202 1,062

7,375 232 3,144

8,101 259 1,577

8,188 227 1,371

8,277 345 1,641

259 11

255 11

262 10

242 8

218 8

241 18

223 24

196 17

193 18

189 17

345 106 2,364 433

255 160 2,793 554

218 117 2,183 510

385 140 446 203

214 128 1,105 298

320 89 689 281

279 73 619 400

370 432 714 307

653 72 991 277

967 362 1,186 351

20 13 1 7 1 2 5 14

20 16 1 7 1 2 5 14

20 16 1 7 1 2 4 14

1,120 5,419

2,309 6,500

6,525 4,086

2,332 3,338

4,332 4,034

68,034 17,080

60,181 11,266

38,772 9,486

42,240 9,669

42,753 9,541

1,570 2,348 3,394 45,256 8,618

1,864 915 7,058 48,545 9,686

4,596 5,756 1,032 51,091 9,803

4,596 5,756 1,032 55,560 11,321

2,056 12,960 738 51,221 8,817

New Water Connections Water Main Breaks Average Daily Produced (Thousands of Gallons) Peak Daily Produced (Thousands of Gallons)

264 44 10,340

283 57 9,440

330 73 10,709

491 45 11,409

598 58 10,712

539 53 9,704

589 48 10,400

552 51 11,497

534 56 11,300

570 39 9,706

21,910

22,078

21,177

21,906

22,097

19,815

18,400

19,889

19,080

18,902

Average Daily Sewage Treatment (Millions of Gallons)

6,850

7,180

6,900

7,400

7,000

7,300

7,680

7,150

6,900

0 269,059 66,033

228,920 109,000

220,219 179,220

279,388 235,005

283,188 265,000

283,175 277,475

271,341 290,939

266,060 274,074

266,710 248,738

271,539 213,269

Police

Fire

Solid Waste Collection Solid Waste Collected (Tons Per Day) Recyclables Collected (Tons Per Day) Other Public Works Potholes Repaired: Asphalt Patching (Tons) Concrete Patching (Cubic Yards) Asphalt Repairs (Tons) Concrete Repairs (Cubic Yards) Parks & Recreation Athletic Field-Agreements EASI (# of Fields Used) Edmond Soccer Club (# of Fields Used) Miracle League of Edmond (# of Fields Used) YMCA (# of Fields Used) Edmond Round Up Arena Edmond Rugby Club (# of Fields Used) Edmond Lacrosse Club (# of Fields Used) B & B Tennis (# of Courts Used) Community Center-MAC Program Participants 1 MAC-Special Event Participants (MAC-Multi-Use Activity Center) Classes⁴ Senior Center-Program Participants -Sr. Center Lunch Program Water

Wastewater

Transit Citylink Bus Service-Revenue Mileage 2 Total Route Miles-Trolleys and Broncho 3 Passengers

2008, tracking of Progams and Special Events are being tracked separately Source: Various City Departments Transit information provided by Metro Transit 2006-2009 3 Transit Information provided by McDonald Transit & Associates 2010, Edmond's Transit began July 1, 2009 ⁴Starting with 2014, Class participation has its own category instead of being merged with programs as in the past. 2

172

CITY OF EDMOND, OKLAHOMA CONSTRUCTION PERMITS Last Ten Fiscal Years TABLE 25

Number of Permits

Construction Costs

Building Permit by Fiscal Year

Construction Cost by Fiscal Year 200,000,000

700

180,000,000

600

160,000,000

500

140,000,000 120,000,000

400

100,000,000

Residential

300

Commercial

Residential

80,000,000

Commercial

60,000,000

200

40,000,000 100

20,000,000

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Residential Construction Fiscal year 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009

Number of Permits 539 551 501 601 561 638 506 337 289 218

Commercial Construction

Construction Cost

Fiscal year

Number of Permits

177,327,598 174,282,232 175,957,069 192,714,809 174,720,033 193,540,217 147,731,866 68,660,592 75,872,141 68,660,592

2018 2017 2016 2015 2014 2013 2012 2011 2010 2009

61 52 68 45 39 33 64 41 13 40

Source: City of Edmond Public Works Department Fiscal building permit reports

173

Construction Cost 141,505,949 41,133,249 90,524,820 68,355,573 78,136,825 41,123,830 181,906,271 30,497,140 58,412,750 39,639,775

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