INTRODUCTIONSECTION

January 31, 2023

Mayor Davis

The Edmond City Council, and Citizens of Edmond, Oklahoma:

We are pleased to provide the Annual Comprehensive Financial Report (ACFR) of the City of Edmond for the fiscal year ended June 30, 2022. This report is published annually as the official annual financial report as mandated by the city charter and state statutes. Within six months of the close of each fiscal year, the City is required to publish a complete set of financial statements presented in conformance with generally accepted accounting principles (GAAP) and audited by licensed certified public accountants (CPAs) in accordance with generally accepted auditing standards (GAAS).

The Financial Services Department of the City is responsible for both the accuracy of the data and the completeness and fairness of the presentation, including all related disclosures. The City operates under a system of comprehensive internal controls designed to safeguard city assets and compile reliable financial records. The definition of accounting control assumes reasonable, but not absolute assurance that the financial statements will be free from material misstatement. The concept of reasonable assurance recognizes that the cost of internal control should not exceed the benefits expected to be derived from those controls. 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. 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 the licensed CPA firm of HSPG & Associates, PC in accordance with GAAS to provide reasonable assurance that the financial statements of the City are free of material misstatement. The independent auditor’s report includes the auditor’s opinion with respect to the City’s financial statements and 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 Office of Management and Budget’s (OMBs) Uniform Guidance. This guidance is an authoritative set of rules and requirements for Federal awards. It requires the auditor to report on the government’s internal controls and compliance in 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.

GAAP requires 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.

Profile of our City Government:

Incorporated in 1890, Edmond is the fifth largest city in the state of Oklahoma (after Oklahoma City, Tulsa, Norman & Broken Arrow) and the 361st largest city in the United States. Edmond covers approximately 88 square miles of central Oklahoma contiguous with the northern boundary of Oklahoma City. Edmond has almost doubled in population since 1990 with a population of 52,315 to a 2020 US Census population estimate of 94,428. Edmond is growing faster than 70% of similarly sized cities since 2000.

Edmond has adopted a charter and operates under a Council‐Manager form of government. 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 for the administration of all City services, budget preparation and employee management.

The city provides a wide range of municipal services, including police and fire protection, planning and zoning, street maintenance and construction, parks, cultural and recreational events, and general administrative services. The City operates enterprise funds for electric, water, wastewater, stormwater management, and solid waste management 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 as the named beneficiary. EPWA’s financial operations are blended with the City’s financial statements.

This report includes all funds, agencies, and boards and commissions that are controlled by, or dependent on, the City’s executive and legislative departments. Included as blended component units are two legally separate units: Edmond Economic Development Authority and the Edmond Historic Preservation Trust. Both units are reported separately within the City’s financial statements. Additional information on these units may be found in the notes to the financial statements.

The city prepares a five‐year strategic business plan and operating budget to support those plans. The City Manager issues executive guidelines that establish priorities and specific economic factors for the City for the upcoming budget year. Budgets are then developed at a departmental level for all five years. The City Manager’s recommended budget is required to be submitted to the City Council no later than June 1 of each year. The City Council holds required public hearings on the budget by June 15 of each year. The City Council officially adopts the budget no later than seven days prior to the beginning of the next fiscal year which is July 1. The appropriated budget is prepared by fund, department, and object level/category. Department heads may make transfers of appropriations within an object category. City Council must approve any transfers between object categories of a department or fund. City Council must approve budget supplements. Budget supplemental appropriations must also be filed with the Office of the State Auditor and Inspector.

Local Economy:

The City of Edmond has had steady growth in its annual sales/use tax revenues for more than two decades. This is due in large part to the steady growth in Edmond’s population. Incorporated in 1890 with a population of 294, Edmond now boasts a US Census 2020 population of over 98,000. Edmond’s award‐winning public‐school system and quality of life draw new residents each year. Citizen support of tax initiatives to earmark investments in the local economy allow the city to make continuous improvements to infrastructure, commercial developments, and recreational venues throughout the city. Edmond voters have approved dedicated sales tax initiatives specifically for Capital Improvement, Fire, Police and Park Funds. These funds are expended exclusively for support of our Public Safety and improvements to our community. The result is a community known to be a safe place to live with outstanding community events, plentiful parks, exceptional competitive sport venues, and beautiful public art on almost every corner. The City of Edmond has made a conscious decision in developing the visual arts aspect of this community. Located on scenic Route 66, Edmond places you just minutes from international attractions such as the National Cowboy and Western Heritage Museum, Remington Park horse racing, and the Lazy E Arena. Additionally, Edmond is a suburb of Oklahoma City and the many benefits offered with a larger metropolitan area.

Edmonds key industries include light manufacturing, information, finance and insurance, professional, scientific, and technical services, and management of companies and enterprises. Additionally, the energy industry is a large contributor to the tax base in Oklahoma. The major employers in Edmond are education institutions, local government, healthcare facilities, e‐commerce, and manufacturing.

The Edmond Police Department is dedicated to keeping citizens informed and involved through crime prevention and personal safety education, school resource officers, an annual Citizens Police Academy, and an ongoing commitment to community relations. The Edmond Police Department values and encourages citizens who share the crime prevention responsibility that contributes to the quality of life in our city.

Capital Improvements:

Edmond invests heavily in continuous improvements to infrastructure and community quality of life projects. Recent and planned investments include improvements to our park and recreation venues, utilities services, traffic, downtown streetscape, and public safety.

Improvements and additions to our park and recreation venues include an extensive trail system, upgrades to our public sports complexes, improvements to other public gathering places, and a major investment in our public golf facilities. A partnership with the Edmond Public Schools supports a state‐of‐the‐art Tennis Center. Long term water utility improvements are outlined in the City of Edmond Water Master Plan. Traffic improvements include intersection enhancements, street widening, street maintenance and intelligent traffic light systems. Downtown and city streetscape improvements include a railway Quiet Zone, ADA improvements, improved security, on‐street parking, trees, and landscape.

Principalofficialsandfinancecommitteemembers

ELECTEDOFFICIALS

Darrell Davis Mayor- Term Expires May 2023

David Chapman Ward 1- Term Expires May 2023

Josh Moore Ward 2- Term Expires May 2023

Christin Mugg Ward 3- Term Expires May 2025

Stacie A. Peterson Ward 4- Term Expires May 2025

FINANCECOMMITTEEMEMBERS

Ross VanderHamm Chairperson

Darrell Davis Member

Darrell.davis@edmondok.gov

David.chapman@edmondok.gov

Josh.moore.edmondok.gov

Christin.mugg@edmondok.gov

Stacie.peterson@edmondok.gov

Ross.VanderHamm@edmondok.gov

Darrell.davis@edmondok.gov

Christin Mugg Member Christin.mugg@edmondok.gov

ADMINISTRATION

Scot Rigby City Manager

Steve Murdock City Attorney

Ross VanderHamm City Treasurer

Andy Conyers Assistant City Manager- Administration

Jim Smith Assistant City Manager- Operations

Cinda Covel City Clerk

Chris Goodwin Fire Chief

J.D. Younger Police Chief

Lisa Goodpasture Human Resource Director

Diane L. Slayton Municipal Judge

Financestaff

Kathy Panas Finance Director

Sheila Briesch Controller

Brenda Mayer Purchasing Agent

Scot.Rigby@edmondok.gov

Steve.Murdock@edmondok.gov

Ross.VanderHamm@edmondok.gov

Andy.Conyers@edmondok.gov

Jim.Smith@edmondok.gov

Cinda.Covel@edmondok.gov

Chris.Goodwin@edmondok.gov

JD.Younger@edmondok.gov

Lisa.Goodpasture@edmondok.gov

Diane.Slayton@edmondok.gov

Kathy.Panas@edmondok.gov

Sheila.Briesch@edmondok.gov

Brenda.Mayer@edmondok.gov