Comprehensive Annual Financial Report 2017 by City of Edmond

COMPREHENSIVE ANNUAL F I N A N C I A L R E P O R T | 2 0 17 City of Edmond, Oklahoma â&#x20AC;¢ Fiscal Year Ending June 30, 2017

Hilton Garden Inn & Edmond Conference Center

CITY OF EDMOND, OKLAHOMA COMPREHENSIVE ANNUAL FINANCIAL REPORT AND ACCOMPANYING INDEPENDENT AUDITORâ&#x20AC;&#x2122;S REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2017

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, 2017 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

17-31

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, 2017 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 Plan Funding 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, 2017 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, 2017 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, 2017 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

CITY OF EDMOND, OKLAHOMA PRINCIPAL OFFICIALS AND FINANCE COMMITTEE MEMBERS JUNE 30, 2017 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 City Manger -Administration Assistant City Manager -Operations City Clerk Fire Chief Police Chief Human Resource Director Municipal Judge

Jim Smith Kory Atcuson Chris Goodwin J.D. Younger Lisa Goodpasture Diane L. Slayton

ACCOUNTING AND TREASURER STAFF Warren Porter William Weaver Sheila Briesch Terri McKay Brenda Mayer

Finance Director Assistant Finance Director Accounting Manager Payroll Manager Purchasing Manager

Citizens

Mayor & City Council

Municipal Judges

City Manager

Authorities & Trusts

City Attorney

Boards & Commissions

Asst. to the City Ma nager

Risk Management

Public Safety Communications & Emergency Mgmt

ACM Operations

Marketing/PR

Police

Wastewater Treatment

Parks and Rec Arcadia Lake

Water Wells

Senior Center Golf

Engineering

Park Maint.

Urban Forestry Code Enforcement

Community Image

Oil & Gas

Training

Festival Mkt Place

CDBG

Recreation Pelican Bay

Human Resources Insurance/Benefits

Cemetery

Electric

Payroll Public Works

Purchasing Water/WW Line Maint

Public Works Admin

ACM Administration

Animal Welfare

Water Plant

Planning/Zoning

Municipal Court

ECVB

Water Resources

Building & Fire Code Services

Fire

Field Services

Vehicle Maint. Facility Maint.

Treasury

Traffic Control Street

Customer Service

DCC

Utility Field Services

Solid Waste

Meter Services

Administrative Services Budget/Acct.

Utility Customer Service

Financial Services

THIS PAGE INTENTIONALLY LEFT BLANK

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, 2017, 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, 2017, 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

309 N. Bryant Ave. • Edmond, OK 73034 • 405.348.0615 • Fax 405.348.0931 • www.jmacpas.com 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 January 19, 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.

January 19, 2018

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

CITY OF EDMOND, OKLAHOMA MANAGEMENT’S DISCUSSION & ANALYSIS June 30, 2017

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, 2017. Please read it in conjunction with the City’s financial statements, which follow this section. FINANCIAL HIGHLIGHTS  For the fiscal year ended June 30, 2017, the City’s total net position increased by $54.7 million.  The City recorded derivative instruments of $1,479,749 and $597,883 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 $71,120,277 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 $87.4 million and were funded by program revenues of $28.3 million and further funded with taxes and other general revenues and transfers that totaled $77.0 million.  In the City’s business-type activities, such as utilities, lake, golf course, and transportation operations; program revenues exceeded expenses by $39.1 million.  Sales and use taxes increased by $.4 million from the prior fiscal year. This translates into an increase in taxable sales of $11 million from the prior year.  At June 30, 2017, the General Fund reported an unassigned fund balance of $5.4 million.  For budgetary reporting purposes, the General Fund and major special revenue funds reported actual revenues above estimates of $3.7 million or 5.0%, while expenditures were under the final appropriations by $1.6 million or 2.25%. 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, 2017

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 Position, the Statement of Revenues, Expenses and Changes in Fund Net Position and Statement of Cash

CITY OF EDMOND, OKLAHOMA MANAGEMENT’S DISCUSSION & ANALYSIS June 30, 2017

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 $655,271,395 at the close of the most recent fiscal year. TABLE 1 NET POSITION (In Thousands)

Governmental Activities 2017

2016

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

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

$ 95,399 313,579 9,801 418,779

Deferred Outflows

22,967

Current liabilities Non‐current liabilities Total liabilities

% Inc. (Dec.)

Business‐Type Activities 2017

2016

‐2% 5% ‐4% 3%

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

$ 141,103 232,725 4,068 377,896

9,670

138%

3,964

27,800 119,502 147,302

27,430 108,194 135,624

1% 10% 9%

Deferred Inflows

2,161

5,808

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

297,762 52,415 (45,256)

Total net position

$ 304,921

% Inc. (Dec.)

Total 2017

2016

45% 6% 58% 21%

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

$ 236,502 546,304 13,869 796,675

26% 5% 14% 12%

2,612

52%

26,931

12,282

119%

20,646 91,274 111,920

20,384 45,830 66,214

1% 99% 69%

48,446 210,776 259,222

47,814 154,024 201,838

1% 37% 28%

‐63%

680

706

‐4%

2,841

6,514

‐56%

255,087 62,143 (30,213)

17% ‐16% 50%

200,608 12,555 137,187

186,486 11,122 115,980

8% 13% 18%

498,370 64,970 91,931

441,573 73,265 85,767

13% ‐11% 7%

$ 287,017

$ 350,350

$ 313,588

12%

$ 655,271

$ 600,605

CITY OF EDMOND, OKLAHOMA MANAGEMENT’S DISCUSSION & ANALYSIS June 30, 2017

Net Position (in Thousands) $400,000 $350,350 $350,000

$273,388

$313,588

$304,921 $294,918 $273,750 $271,156 $287,017 $248,599 $244,283 $241,069 $229,461 $229,167 $235,828 $221,573 $214,648 $202,648 $201,953 $192,594 $184,814

$300,000 $250,000 $200,000 $150,000 $100,000 2008

2009

2010

2011

2012

2013

Governmental

2014

2015

2016

2017

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 2017, this investment in capital assets, net of related debt amounted to $498,369,750. 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, $64,970,492, also represents resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted net position, $91,931,153, 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, 2017, net position of the primary government changed as follows:

CITY OF EDMOND, OKLAHOMA MANAGEMENT’S DISCUSSION & ANALYSIS June 30, 2017

TABLE 2 CHANGES IN NET POSITION (In Thousands)

Governmental Activities 2017

2016

$ 11,469 6,552 10,310

$ 9,504 6,040 10,190

70,805 1,118 626 1,098

Total Revenues

% Inc. (Dec.)

Business‐Type Activities 2017

2016

21% 8% 1%

$ 155,607 1,168 4,641

$ 144,829 309 6,493

70,528 1,061 933 1,016

0% 5% ‐33% 8%

‐ ‐ 929 ‐

101,978

99,272

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

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

9,167 47,309 15,152 7,068 1,639 577 1,829 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐

‐13% 12% 0% 14% 3% ‐100% ‐9%

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

87,385 14,593 3,311 17,904 287,017 $ 304,921

82,741 16,531 (670) 15,861 271,156 $ 287,017

6% ‐12% ‐594% 13%

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 2017

2016

7% 278% ‐29%

$ 167,076 7,720 14,951

$ 154,333 6,349 16,683

8% 22% ‐10%

‐ ‐ 917 ‐

0% 0% 1% 0%

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

70,528 1,061 1,850 1,016

0% 5% ‐16% 8%

162,345

152,548

264,323

251,820

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

‐ ‐ ‐ ‐ ‐ ‐ ‐ 75,313 17,495 7,224 7,052 1,365 903 2,319 50 1,297

7% 7% 34% 2% 7% 15% ‐5% 2% 31%

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

9,167 47,309 15,152 7,068 1,639 577 1,829 75,313 17,495 7,224 7,052 1,365 903 2,319 50 1,297

‐13% 12% 0% 14% 3% ‐100% ‐9% 7% 7% 34% 2% 7% 15% ‐5% 2% 31%

122,272 40,073 (3,311) 36,762 313,588 $ 350,350

113,018 39,530 670 40,200 273,388 $ 313,588

209,657 54,666 ‐ 54,666 600,605 $ 655,271

195,759 56,061 ‐ 56,061 544,544 $ 600,605

7% ‐2%

8% 1% ‐594% ‐9%

‐ ‐2%

The City’s governmental activities’ increase in net position of $17.9 million represents an 13% increase from the prior year’s change in net position and is primarily the result of increased revenues in the charges for services category and an increase in the transfer in. The business-type activities’ increase in net position of $36.8 million represents a 9% 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 $54.7 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, 2017

For the year ended June 30, 2017, the City’s governmental activities were funded as follows:

Governmental Activities Sources 3%

16%

Sales Tax Other Taxes

11%

Charges for Service Grants 67%

Other

Governmental Activities Uses 3% 2% Public Safety General Government

18%

Culture, parks and recreation 9%

57% 11%

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

For the year ended June 30, 2017, total expenses for governmental activities amounted to $87.4 million. Of these total expenses, taxes and other general revenues funded $76.9 million, while those directly benefiting from the program funded $16.9 million in grants and other contributions and $11.5 million from charges 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

CITY OF EDMOND, OKLAHOMA MANAGEMENT’S DISCUSSION & ANALYSIS June 30, 2017

TABLE 3 Net Revenue (Expense) of Governmental Activities (In Thousands) % Inc. Net Revenue (Expense) (Dec.) Total Expense of Services of Services 2017 2016 2017 2016 General Government $ 8,006 $ 9,167 ‐13% $ 1,864 $ (1,456) Public Safety 52,799 47,309 12% (46,469) (41,308) Streets & Highways 15,148 15,152 0% (4,142) (4,214) Culture, parks and recreation 8,081 7,068 14% (7,816) (6,854) Health and Welfare 1,682 1,639 3% (822) (769) Economic Development ‐ 577 ‐100% ‐ (577) Interest on long‐term debt 1,669 1,829 ‐9% (1,669) (1,829) TOTAL

$ 87,385

$ 82,741

$ (59,054)

$ (57,007)

% Inc. (Dec.) ‐228% 12% ‐2% 14% 7% ‐100% ‐9% 4%

Business-type Activities TABLE 4 Net Revenue (Expense) of Business‐Type Activities (In Thousands) % Inc. Net Revenue (Expense) of (Dec.) Total Expense of Services Services 2017 2016 2017 2016 Electric $ 80,292 $ 75,313 7% $ 16,706 $ 16,936 Water 18,724 17,495 7% 12,775 10,737 Wastewater 9,665 7,224 34% 8,049 9,011 Sanitation 7,158 7,052 2% 2,042 2,076 Lake 1,454 1,365 7% (345) (286) Drainage 1,034 903 15% 757 973 Golf 2,201 2,319 ‐5% (213) (284) Cooperative purchasing services 51 50 2% 40 14 Transportation 1,693 1,297 31% (667) (564)

TOTAL

$ 122,272

$ 113,018

$ 39,144

$ 38,613

% Inc. (Dec.) ‐1% 19% ‐11% ‐2% 21% ‐22% ‐25% 186% 18%

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: 

Total business-type activities reported net revenues of $39.1 million for the year ended June 30, 2017.

CITY OF EDMOND, OKLAHOMA MANAGEMENT’S DISCUSSION & ANALYSIS June 30, 2017

 

All individual activities reported net revenue for the year ended June 30, 2017 with the exception of lake, golf and transportation operations. Significant increases in net revenue were recognized in the water operation due to increased rates water, a delay in capital projects, and management of operating expenses.

A FINANCIAL ANALYSIS OF THE CITY’S FUNDS As the City completed its 2017 fiscal year, the governmental funds reported a combined fund balance of $69.5 million or a 1.1% decrease from 2016. The enterprise funds reported combined net position of $342.6 million or a 12.0% increase from 2016. The fund balance constraints and net position restrictions are listed below: Governmental Funds: Fund Balance: Restricted

Committed

55,757,460 3,444

Assigned

8,371,937 Total Fund Balance Constraints

64,132,841

12,556,816

Enterprise Funds: Net Position Restrictions: Restricted for debt service

Restricted for scholarships

12,555,515 1,301

Total Enterprise Fund Net Position Restrictions

Other fund highlights include:  For the year ended June 30, 2017, the General Fund’s total fund balance increased by $2,389,569 due to increased charges for services and fines and forfeitures.  The 2000 Capital Improvement Tax Fund’s total fund balance decreased by $8,057,157 due to decreased transfers in from other funds and use of restricted funds.  The Fire Public Safety Limited Tax Fund’s total fund balance increased by $1,006,830 due to an decrease in expenditures for operations and a slight increase in transfers from other funds.  The 2012 Public Safety Limited Tax Fund’s total fund balance increased by $4,220,230 due to a decrease in expenditures and transfers from the General Fund.  All enterprise funds reported an increase in net position, after transfers, for the year ended June 30, 2017 with the exception of lake, golf and City Link. In each of the funds mentioned above, charges for services did cover operational costs with the exception of Lake, Golf and City Link (Transportation) Operations.  The employee pension trust fund posted an increase in net position of the fund of $7.7 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, 2017

Over the course of the year, the City Council revised the General Fund budget various times. The revised budget included an increase in overall revenue projections of 21% or $11,636,249 due to transfers in. Actual revenues and transfers were above final estimates by $3,213,008 or 4.75% which was a result of an increase in transfers in, while expenditures were under final appropriations by $1,576,984 or 2.25% which is mainly due to reduced operating expenses in general government and parks. CAPITAL ASSET AND DEBT ADMINISTRATION Capital Assets At the end of June 30, 2017, the City had $576 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 $29.5 million or 5.39% 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

2017 $ 17,713 86,912 16,932 23,928 ‐ ‐ 147,140 35,434

2016 $ 15,208 89,469 12,642 23,895 ‐ ‐ 147,510 24,855

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

2016 $ 2,351 21,366 10,116 3,679 14,194 162,256 ‐ 18,762

2017 $ 20,284 107,338 26,827 27,456 13,550 162,974 147,140 70,195

2016 $ 17,559 110,835 22,758 27,574 14,194 162,256 147,510 43,617

Totals

$ 328,059

$ 313,579

$ 247,705

$ 232,724

$ 575,764

$ 546,303

This year’s more significant capital asset additions included: $10.0 million in Street improvement projects $3.2 million in Park improvements $15.9 million in Water Utility improvements $11.3 million in Wastewater Utility improvements $2.3 million in Electric Utility 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, 2017

At year-end, the City had $133 million in long-term debt outstanding which represents a $29.5 million or 29% 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

2017

2016

2017

2016

2017

2016

Accrued absences Revenue bonds Notes payable Capital lease

$ 3,754 49,259 ‐ ‐

$ 3,610 55,788 ‐ ‐

$ 753 66,102 13,688 22

$ 719 28,717 14,999 39

$ 4,507 115,361 13,688 22

$ 4,329 84,505 14,999 39

4% 37% ‐9% ‐44%

Totals

$ 53,013

$ 59,398

$ 80,565

$ 44,474

$ 133,578

$ 103,872

29%

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 2017 Economic Report noted the following:       

Gross revenue totals $11.2 billion from the past 12 months. That is $377.8 million, or 3.5%, more than collections from the previous 12 months. Gross income taxes generated $4 billion for the November 2016-October 2017 period, reflecting a decrease of $16.5 million, or 0.4%, from the November 2015-October 2016 period. Individual income tax collections total $3.6 billion, up by $48.5 million, or 1.4%, from the prior 12 months. Corporate collections are $397.6 million for the period, a decrease of $65 million, or 14%, over the previous period. Sales taxes for the period generated $4.4 billion, an increase of $135 million, or 3.2%, from the prior year. Oil and gas gross production tax collections brought in $501.7 million during the past 12 months, up $157 million, or 45.6%, from the previous 12-month period. Motor vehicle collections total $762 million for the period. This is an increase of $15.7 million, or 2.1%, from the trailing period. Other sources generated $1.7 billion, up by $86.6 million, or 5.5%, from the previous 12 months.

October, 2017, Gross Receipts to the Treasury are up by more than 10% from the same month of the prior year, the first time double-digit growth has been seen in four and a half years. It also marked the ninth time since the start of the calendar year that monthly Gross Receipts to the Treasury are more than the prior year.

CITY OF EDMOND, OKLAHOMA MANAGEMENT’S DISCUSSION & ANALYSIS June 30, 2017

At $980.2 million, October collections are up by 10.6%, or $94.1 million, compared to receipts from October 2016. The last time monthly gross receipts grew by more than 10% was in April 2013. 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 $25.7 million in October to new revenue resulting from legislation enacted during the last regular session. The largest amount, $11.7 million, is tied to a 1.25% state sales tax on motor vehicles. A $5 fee on motor vehicle registration increased collections by $1.9 million for the month. New revenue gained during the month by increasing the 1% horizontal drilling gross production tax rate to 4% is reported as $7.8 million by the tax commission. Elimination and suspension of gross production rebate payments added $3 million to gross collections during the month. Ending a discount for businesses that remit sales tax added $1.2 million for the month, and a new fee assessed on professional sports tickets contributed over $71,000. Since August, law changes from last session have yielded more than $66.2 million in new gross revenue through October 2017. After dropping below growth neutral in July, the Oklahoma Business Conditions Index has topped growth neutral for three consecutive months. The October index was set at 63, up from 62.7 in September. Numbers above 50 indicate anticipated positive growth in the next three to six months. September Gross Receipts to the Treasury totaled $1.01 billion, while the General Revenue Fund (GRF), as reported by the Office of Management and Enterprise Services, received $505.1 million, or 49.9%, of the total. The GRF received between 32.7% and 54.1% of monthly gross receipts during the past 12 months. From September 2017 gross receipts, the GRF received:       

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

65.4% 66.0% 44.9% 75.7% 11.7% 25.8% 35.9%

September insurance premium taxes totaled $57.4 million, an increase of $9.9 million, or 20.9% over prior year. Tribal gaming fees generated $11.4 million during the month, up by 2.8% from September 2016. Oklahoma unemployment rate remains state for September 2017 Oklahoma’s seasonally adjusted unemployment rank was unchanged at 4.5% in September 2017, but still remains above the U.S. jobless rate, according to the Oklahoma Employment Security Commission. The September 2017 unemployment rate improved by one-half of a percentage point over the year. The U.S. jobless rate was set at 4.2% in September. Oklahoma has the highest number persons employed in September 2017 since May 2017 and almost 14,500 more employed than in September 2016.

CITY OF EDMOND, OKLAHOMA MANAGEMENT’S DISCUSSION & ANALYSIS June 30, 2017

Oklahoma Economic Indicators    



Energy. After dropping in February 2016 to near $26/barrel for crude oil and $2.60/MCF natural gas, benchmark prices on December 28, 2016, had risen to $53 + for crude oil and $3.80 for natural gas. Energy. For 16 consecutive months, through August 2017, the active oil rig count had stayed the same or increased. In October 2017, there were 125 active rigs in Oklahoma, compared to 53 in October 2016. Energy. In April 2017, active natural gas rig count is at its highest count since November 2015. Employment. Oklahoma County, home of Edmond, unemployment rate was 4.1% in October 2017. This rate is below the unemployment rate for both Oklahoma and the U.S. In October 2017, the strongest employment growth was in the mining and logging (9.9%) and construction (7.5%) sectors 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 16 months, with the September 2017 forecast turned up to a 1.95% percent pace. Overall, Oklahoma’s leading index for September suggests expansion in the state’s economy into the 1st quarter of 2018. Regional indicator. Mid-America Business Conditions, for October 2017, climbed to a robust 63.0 from 62.7 the prior month. The rate for October 2016 had been 43.8, with anything above 50 suggesting an improvement in economic conditions.

City of Edmond Economic Highlights: Local Sales Tax The City saw a decline in sales tax receipts in FY16-17, its main general revenue source. After a record year in FY15-16, collections fell by 1.35% for last fiscal year. The City had budgeted for a 0% growth in sales tax for FY16-17, so the impact on expected revenues did not require cuts in service or an increase in other rates. City collections for FY15-16 rose by 0.69% from FY14-15. The last time sales tax dipped for the City was FY09-10.

CITY OF EDMOND, OKLAHOMA MANAGEMENT’S DISCUSSION & ANALYSIS June 30, 2017

For FY17-18 budget, City has proposed a 1% growth in sales tax. Beginning with June 2017, City has experienced a growth over previous year sales tax collections for six consecutive months. For FY17-18, sales tax collections exceed the same period through November by 2.03%. 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. Since receipts beginning in May 2017, our year to date change for the past seven months has been a 48.8% increase in Use Tax payments. This represents a $1,216,794 increase over previous period collections for the General Fund. City of Edmond’s FY17-18 Budget The FY17-18 Budget direct cost totals $271,961,867, a decrease of about 8.6% from FY16-17. This decrease of about $26 million is primarily the result of unbudgeted capital expansions in both Wastewater

CITY OF EDMOND, OKLAHOMA MANAGEMENT’S DISCUSSION & ANALYSIS June 30, 2017

Treatment and Water Treatment during the current fiscal year. Those projects, once project scopes have been completed and financing arranged, could total over $350 million and take up to three years to complete. 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 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; and Fire Station #2 relocation.



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.

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

CITY OF EDMOND, OKLAHOMA MANAGEMENT’S DISCUSSION & ANALYSIS June 30, 2017

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 will open 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. Additional projects for the area include a proposed entertainment complex, with a preliminary term sheet approved by the Edmond City Council. Under construction within the area is a grocery store and a limited service restaurant.



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.



In FY16-17, Edmond completed over $1 million in roadway resurfacing and rehabilitation activities.



For FY17-18, the 2000 CIP is budgeted to implement over $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.

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BASIC FINANCIAL STATEMENTS

CITY OF EDMOND, OKLAHOMA ANNUAL FINANCIAL REPORT June 30, 2017 City of Edmond, Oklahoma Statement of Net Position June 30, 2017 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

21,374,409 56,052,372

Business-type Activities

10,863,966 110,946 1,407,376 (7,781,671) 10,842,145 1,063,722 93,933,265

Total Assets DEFERRED OUTFLOWS OF RESOURCES Deferred charge on refunding Deferred amounts related to pension 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 Net OPEB obligation 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 pensions Total deferred inflow of resources

23,492,179 97,335,386

Component Units Historic Economic Preservation Development Trust Authority

Total

44,866,588 153,387,758

89,184 -

386,349 -

47,785,591 4,917,530 202,221 20,720,829 7,781,671 168,783 2,436,467 204,840,657

58,649,557 4,917,530 313,167 22,128,205 11,010,928 3,500,189 298,773,922

89,184

41,270 861 159,796 588,276

2,788,521 5,156,996 1,479,749

3,681,062 2,161,426 597,883

6,469,583 7,318,422 2,077,632

53,146,486 274,912,465 337,484,217

37,332,302 210,372,505 254,145,178

90,478,788 485,284,970 591,629,395

100,450 66,276 166,726

10,038 10,038

431,417,482

458,985,835

890,403,317

255,910

598,314

1,057,729 21,909,036 22,966,765

596,974 3,366,967 3,963,941

1,654,703 25,276,003 26,930,706

113,237 113,237

5,596,970 955,767 358,118 6,664,309 5,351,523

12,153,437 1,359,621 413,094 -

17,750,407 2,315,388 358,118 6,664,309 413,094 5,351,523

2,488 -

6,701,393 375,435 1,797,151 27,800,666

4,584 1,341,102 5,298,607 75,312 20,645,757

4,584 1,341,102 12,000,000 450,747 1,797,151 48,446,423

2,846 5,334

3,378,900 2,847,437 65,171,834 45,983,449 2,120,050 119,501,670

677,808 4,145,656 778,392 5,754,480 17,678 67,552,410 12,347,161 91,273,585

4,056,708 4,145,656 3,625,829 70,926,314 17,678 113,535,859 12,347,161 2,120,050 210,775,255

25,614 193,963 219,577

147,302,336

111,919,342

259,221,678

224,911

1,479,749 681,243 2,160,992

597,883 82,075 679,958

2,077,632 763,318 2,840,950

15,901 15,901

297,762,184

200,607,566

498,369,750

166,726

10,038

7,896,328 677,621 43,841,028 (45,256,242) 304,920,919

12,555,515 137,187,395 350,350,476

7,896,328 677,621 56,396,543 91,931,153 655,271,395

89,184 255,910

41,270 419,431 470,739

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, 2017

City of Edmond, Oklahoma Statement of Activities For the Year Ended June 30, 2017

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

8,005,753 52,798,820 15,148,413 8,080,826 1,681,699 1,669,226 87,384,737

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

9,352,670 1,115,725 13,140 127,378 859,838 11,468,751

Program Revenue Operating Grants and Contributions

96,627,510 28,766,025 15,752,873 9,199,752 1,108,201 1,791,313 1,988,412 91,286 282,098 155,607,470

516,902 5,213,863 785,848 35,484 6,552,097

Capital Grants and Contributions

Governmental Activities

10,207,708 102,069 10,309,777

370,077 54,126 743,700 1,167,903

(59,054,112)

209,656,772

167,076,221

7,720,000

14,950,423

52,580 631,419 683,999

140,852 140,852

1,863,819 (46,469,232) (4,141,717) (7,815,895) (821,861) (1,669,226) (59,054,112)

2,733,536 1,907,110 4,640,646

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

38,693,158 8,631,688 2,107,465 18,765,363 464,292 2,142,557 1,118,273 626,649 1,097,844 3,311,003 76,958,292 17,904,180 287,016,739

Net position - ending

304,920,919

See accompanying notes to the basic financial statements.

16,705,459 12,775,429 8,049,176 2,041,880 (345,466) 757,143 (213,274) 40,389 (666,752) 39,143,984

39,143,984

(19,910,128)

929,047 (3,311,003) (2,381,956) 36,762,028 313,588,448 $

1,863,819 (46,469,232) (4,141,717) (7,815,895) (821,861) (1,669,226) (59,054,112)

350,350,476

38,693,158 8,631,688 2,107,465 18,765,363 464,292 2,142,557 1,118,273 1,555,696 1,097,844 74,576,336 54,666,208 600,605,187 $

655,271,395

(52,580) (52,580)

(490,567) (490,567)

20,000 122 1,128 21,250 (31,330) 287,240

572,420 5,607 578,027 87,460 383,279

255,910

470,739

CITY OF EDMOND, OKLAHOMA ANNUAL FINANCIAL REPORT June 30, 2017

City of Edmond, Oklahoma Balance Sheet Governmental Funds June 30, 2017

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

461,198 1,988,546 1,140,574 6,152,547 3,935 1,057,738 10,804,538

LIABILITIES, DEFERRED INFLOWS AND FUND BALANCES Liabilities: Accounts payable $ 249,901 Due to other funds 18,016 Unearned revenue 180,372 Other accrued expenses Matured revenue bonds payable Amounts held in escrow 358,118 Total liabilities 806,407 Deferred Inflows of Resources: Unavailable revenue Total deferred inflows of resources Fund balances: Restricted Committed Assigned Unassigned Total fund balances Total liabilities and fund balances

Police Public Safety Limited Tax Fund

Fire Public Safety Limited Tax Fund $

2,403,296 10,425,935 630,689 20,629 13,480,549

583,797 583,797

2000 Capital Improvement Tax Fund

1,383,921 6,003,524 333,612 11,879 1,000 7,733,936

694,669 694,669

2012 Public Safety Center Tax Fund

16,018,533 15,382,014 1,892,066 20,241 33,312,854

1,642,292 7,620,076 9,262,368

418,501 1,814,020 3,590 2,236,111

11,948 11,948

455,572 455,572

12,314 12,314

7,091 7,091

12,082 12,082

2,143 2,143

2,660,047 1,462,779 5,419,733 9,542,559 10,804,538

12,122,150 762,288 12,884,438 13,480,549

5,993,091 1,039,085 7,032,176 7,733,936

20,569,609 3,468,795 24,038,404 33,312,854

2,197,190 24,830 2,222,020 2,236,111

See accompanying notes to the basic financial statements.

Total Governmental Funds

Other Governmental Funds

9,291,245 4,426,648 1,643,791 8,766 163,088 15,533,538

617,956 1,124,811 2,607 1,745,374

5,233 5,233

12,215,373 3,444 1,614,160 (50,046) 13,782,931 15,533,538

29,976,694 40,040,687 1,140,574 10,652,705 69,040 1,220,826 1,000 83,101,526

3,800,563 1,142,827 180,372 2,607 7,620,076 358,118 13,104,563

494,435 494,435

55,757,460 3,444 8,371,937 5,369,687 69,502,528 83,101,526

CITY OF EDMOND, OKLAHOMA ANNUAL FINANCIAL REPORT June 30, 2017

City of Edmond, Oklahoma Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position June 30, 2017 Total fund balance, governmental funds

69,502,528

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

310,174,370

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

39,950 454,485 16,436,979

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 Deferred amount on refunding Unamortized debt premium Net pension liability Pension related deferred inflows Net OPEB obligation Advance Deferred amount related to derivative instrument

(49,258,947) (2,732,071) 1,057,729 (3,425,895) (55,511,606) (618,658) (2,383,541) (5,171,151) 1,479,749

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

(1,479,749)

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

34,136,165 (7,779,418)

See accompanying notes to the basic financial statements.

304,920,919

CITY OF EDMOND, OKLAHOMA ANNUAL FINANCIAL REPORT June 30, 2017

City of Edmond, Oklahoma Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds For the Year Ended June 30, 2017

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 Investment earnings on interfund loans 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

38,693,158 2,142,557 1,976,671 6,780,188 2,267,734 1,452,924 44,619 148,255 53,506,106

Fire Public Safety Limited Tax Fund $

4,214,931 3,998,065 10 73,363 58,947 8,345,316

Police Public Safety Limited Tax Fund $

2,107,465 1,386,598 56,040 152,665 3,702,768

2000 Capital Improvement Tax Fund $

12,644,793 319,944 434,928 13,399,665

2012 Public Safety Center Tax Fund $

6,120,570 48,804 6,169,374

Other Governmental Funds

Total Governmental Funds

4,416,757 464,292 444,352 883,686 40,488 61,930 312,215 6,623,720

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

5,370,175 2,955,869 648,896 3,718,180 5,377,604 2,027,680 20,098,404

22,662,751 -

23,685,664 -

128,338 -

148,112 -

612,689 34,708 778,052 1,329,766 -

6,111,202 49,487,104 1,426,948 5,047,946 5,377,604

561,289 23,224,040

73,138 23,758,802

6,529,309 1,943,070 12,830,605 21,431,322

61,930 1,470,892 1,680,934

2,879,107 5,634,322

6,529,309 2,005,000 19,842,711 95,827,824

33,407,702

(14,878,724)

(20,056,034)

(8,031,657)

4,488,440

989,398

18,393,519 (49,411,652) (31,018,133) 2,389,569

15,885,554 15,885,554 1,006,830

19,486,282 19,486,282 (569,752)

(25,500) (25,500) (8,057,157)

(268,210) (268,210) 4,220,230

361,010 (1,110,000) (748,990) 240,408

54,126,365 (50,815,362) 3,311,003 (769,872)

7,152,990

11,877,608

7,601,928

32,095,561

(1,998,210)

13,542,523

70,272,400

9,542,559

12,884,438

7,032,176

24,038,404

See accompanying notes to the basic financial statements.

2,222,020

13,782,931

(4,080,875)

69,502,528

CITY OF EDMOND, OKLAHOMA ANNUAL FINANCIAL REPORT June 30, 2017

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, 2017

Net change in fund balances - total governmental funds:

(769,872)

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

19,517,073 10,207,708 (15,525,364) (3,128)

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.

102,352

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) 501,457

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

311,828 (12,314) (23,200) (18,539)

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

6,529,309

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 Net OPEB obligation change

(122,719) (250,326)

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.

(2,406,381) 31,750 $

17,904,180

CITY OF EDMOND, OKLAHOMA ANNUAL FINANCIAL REPORT June 30, 2017 City of Edmond, Oklahoma Statement of Net Position Proprietary Funds June 30, 2017 Edmond Public Works Authority (EPWA) Enterprise Funds

Electric Fund ASSETS Current assets: Cash and cash equivalents $ 6,183,720 Investments 23,618,839 Restricted assets: Cash and cash equivalents 21,519 Investments 3,263,977 Receivables: Accrued interest receivable 53,056 Utility billing, net of allowance for uncollectible accounts 14,031,916 Due from other governments Other receivables 95,721 Due from other funds 369,231 Inventories 2,365,901 Total current assets 50,003,880 Non-current assets: Restricted assets: Cash and cash equivalents 33,037 Investments 54,104 Derivative instruments Capital Assets: Nondepreciable 381,867 Depreciable, net of accumulated depreciation 44,699,810 Total non-current assets 45,168,818 Total assets 95,172,698 DEFERRED OUTFLOWS OF RESOURCES Deferred charge on refunding Deferred amounts related to pensions 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 Meter deposit liability Total current liabilities Non-current liabilities: Compensated absences Meter deposit liability Claims and judgments Capital lease obligation Net OPEB obligation 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 Total deferred inflow of resources NET POSITION Net investment in capital assets Restricted for debt service Restricted for scholarships Unrestricted Total net position

Wastewater Fund

Water Fund

8,656,966 36,861,432

5,641,691 24,125,779

Other Enterprise Funds

3,009,802 12,729,336

Total

23,492,179 97,335,386

Internal Service Funds

5,040,202 21,178,681

10,131,384 903,222

36,645,833 446,892

986,855 303,439

47,785,591 4,917,530

74,648 3,747,395 122 14,782 69,221 60,459,172

48,716 1,638,727 36,925 68,584,563

25,801 1,147,254 168,661 45,034 897,771 70,566 19,384,519

202,221 20,565,292 168,783 155,537 1,373,148 2,436,467 198,432,134

41,906 189,440 186,550 1,062,722 27,699,501

1,307,157 1,820,397 597,883

2,209,518 70,040 -

131,350 216,885 -

3,681,062 2,161,426 597,883

16,142,960 97,830,828 117,699,225 178,158,397

19,144,360 55,661,603 77,085,521 145,670,084

1,663,115 12,180,264 14,191,614 33,576,133

37,332,302 210,372,505 254,145,178 452,577,312

809,418 17,075,163 17,884,581 45,584,082

13,088 1,471,352 1,484,440

497,261 615,966 1,113,227

12,436 322,191 334,627

74,189 957,458 1,031,647

596,974 3,366,967 3,963,941

5,472,057 5,472,057

6,413,530 188,477 10,208 470,496

2,412,059 76,583 546,421 255,117

2,207,498 36,150 770,563 195,039

672,967 146,173 32,429 450,243

11,706,054 447,383 1,359,621 1,370,895

1,078,429 715,371 -

35,416 4,584 112,928 282,711 7,518,350

11,053 1,341,102 3,885,377 66,283 8,593,995

5,307 795,977 32,855 4,043,389

23,536 504,325 31,245 1,860,918

75,312 4,584 1,341,102 5,298,607 413,094 22,016,652

102,228 1,797,151 3,693,179

318,748 2,981,226 17,678 327,770 2,598,313 543,056 6,786,791 14,305,141

99,480 596,544 152,330 1,024,962 12,347,161 22,179,338 36,399,815 44,993,810

47,760 295,692 48,022 476,850 42,401,039 43,269,363 47,312,752

211,820 272,194 250,270 1,654,355 2,428,977 4,817,616 6,678,534

677,808 4,145,656 17,678 778,392 5,754,480 12,347,161 67,552,410 91,273,585 113,290,237

920,036 2,120,050 463,896 9,660,228 13,164,210 16,857,389

38,390 38,390

597,883 7,733 605,616

12,498 12,498

23,454 23,454

597,883 82,075 679,958

62,585 62,585

44,416,519 98,492 37,798,596 82,313,607

78,062,721 8,400,529 47,208,948 133,672,198

67,144,060 2,750,496 28,784,905 98,679,461

10,984,266 1,305,998 1,301 15,614,227 27,905,792

200,607,566 12,555,515 1,301 129,406,676 342,571,058

17,936,222 16,199,943 34,136,165

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

7,779,418 $

See accompanying notes to the basic financial statements.

350,350,476

CITY OF EDMOND, OKLAHOMA ANNUAL FINANCIAL REPORT June 30, 2017 City of Edmond, Oklahoma Statement of Revenues, Expenses and Changes in Fund Net Position Proprietary Funds For the Year Ended June 30, 2017 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

96,615,344 12,690 96,628,034

Wastewater Fund

Water Fund $

27,399,432 1,245,598 104,989 28,750,019

15,042,046 695,415 15,737,461

Other Enterprise Funds $

14,039,213 743,700 424,228 15,207,141

Total $

153,096,035 1,941,013 743,700 541,907 156,322,655

Internal Service Funds $

46,930,214 196,348 47,126,562

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 (loss)

5,010,953 1,111,940 58,950,811 11,843,875 3,149,155 80,066,734 16,561,300

2,061,204 358,085 7,925,662 6,945,465 17,290,416 11,459,603

981,293 486,627 4,343,085 2,380,817 8,191,822 7,545,639

3,674,732 1,015,502 8,867,517 452,786 14,010,537 1,196,604

11,728,182 2,972,154 58,950,811 32,980,139 12,928,223 119,559,509 36,763,146

19,455,510 3,204,500 12,274,915 1,395,149 11,063,623 2,415,882 49,809,579 (2,683,017)

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 (loss) before contributions and transfers Capital contributions Transfers in Transfers out Change in net position Total net position - beginning Total net position - ending

204,588 369,553 (21,285) 552,856 17,114,156 (3,861,180) 13,252,976 69,060,631 82,313,607

389,247 70,132 (1,193,496) (734,117) 10,725,486 2,733,536 12,587,120 (12,792,880) 13,253,262 120,418,936 133,672,198

242,485 15,412 (1,380,811) (1,122,914) 6,422,725 1,907,110 (276,035) 8,053,800 90,625,661 98,679,461

92,727 5,160 (90,344) (2,379) 5,164 1,201,768 1,385,396 (353,424) 2,233,740 25,672,052 27,905,792

929,047 455,097 5,160 (2,685,936) (2,379) (1,299,011) 35,464,135 4,640,646 13,972,516 (17,283,519) 36,793,778 305,777,280 342,571,058

154,531 189,602 (67,497) 276,636 (2,406,381) (2,406,381) 36,542,546 34,136,165

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

36,793,778

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

36,762,028

See accompanying notes to the basic financial statements.

(31,750)

CITY OF EDMOND, OKLAHOMA ANNUAL FINANCIAL REPORT June 30, 2017 City of Edmond, Oklahoma Statement of Cash Flows Proprietary Funds For the Year Ended June 30, 2017 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

96,747,337 (72,452,914) (4,682,916) 1,088,086 (668,257) (253,950) 470,496 20,247,882

Wastewater Fund

Water Fund $

27,829,954 (6,130,292) (1,912,743) (69,221) 113,847 19,831,545

15,516,283 (4,546,692) (882,926) (36,925) 63,114 10,112,854

Other Enterprise Funds

Total Enterprise Funds

Internal Service Funds

15,338,525 (9,697,998) (3,475,391) (720,688) 433,327 1,877,775

155,432,099 (92,827,896) (10,953,976) 1,088,086 (668,257) (1,080,784) 1,080,784 52,070,056

47,548,827 (16,707,994) (18,744,804) (9,550,584) 18,112 2,563,557

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

(3,861,180) (3,861,180)

12,587,120 (12,792,880) (205,760)

(276,035) (276,035)

1,385,396 (353,424) 1,031,972

13,972,516 (17,283,519) (3,311,003)

CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Purchase of capital assets Premium on capital debt issued Proceeds from sale of capital assets 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

(2,423,310) (111,633) (28,325) (2,563,268)

(10,922,318) 375,676 3,460,626 (4,983,980) (1,405,311) (13,475,307)

(9,352,455) 4,537,150 38,334,374 (84,682) (1,149,372) 32,285,015

(564,681) (557,708) (125,440) (1,247,829)

(23,262,764) 4,912,826 41,795,000 (5,738,003) (2,708,448) 14,998,611

(2,831,405) 64,291 (2,767,114)

CASH FLOWS FROM INVESTING ACTIVITIES Purchases of investments Sale of investments Interest and dividends Net cash provided by (used in) investing activities

(9,816,275) 264,663 (9,551,612)

820,140 492,606 1,312,746

(584,464) 308,693 (275,771)

(973,477) 750,368 128,472 (94,637)

(11,374,216) 1,570,508 1,194,434 (8,609,274)

(668,592) 2,909,872 213,485 2,454,765 2,251,208

Net Increase in cash and cash equivalents Balances-beginning of year Balances-end of year

Reconciliation to Combining Statement of Net Position: Cash, including time deposits Restricted cash, including time deposits-current Restricted cash, including time deposits-noncurrent Total cash and cash equivalents, end of year

4,271,822

7,463,224

41,846,063

1,567,281

55,148,390

1,966,454

12,632,283

2,650,979

2,560,726

19,810,442

2,788,994

6,238,276

20,095,507

44,497,042

4,128,007

74,958,832

5,040,202

6,183,720 21,519 33,037 6,238,276

23,492,179 47,785,591 3,681,062 74,958,832

3,009,802 986,855 131,350 4,128,007

5,641,691 36,645,833 2,209,518 44,497,042

8,656,966 10,131,384 1,307,157 20,095,507

5,040,202 5,040,202

11,459,603

7,545,639

1,196,604

36,763,146

(2,683,017)

Reconciliation of Operating Income (Loss) to Net Cash Provided by Operating Activities: Operating income (loss) $ 16,561,300 Adjustments to reconcile operating income (loss) to net cash provided by operating activities: Depreciation expense 3,149,155 Miscellaneous non-operating revenue (expense) 369,553 Change in assets and liabilities: Receivables, net (240,647) Other receivable (9,603) Inventories (198,309) Deposits with TPA Prepaid expenses Due from other governments Due from other funds (253,950) Deferred outflows related to pension (574,480) Accounts and other payables (315,457) 470,496 Due to other funds Customer meter deposits payable 419,829 Unearned revenue Claims liability Net OPEB obligation 32,324 Net Pension liability 811,691 Deferred inflows related to pension 18,016 Accrued compensated absences 7,964 $ 20,247,882 Net cash provided by operating activities

Non-cash Activities: Capital assets donated Change in fair value of investments Total Non-cash Activities

$ $

(90,277) (90,277)

6,945,465 70,132

2,380,817 15,412

(975,415) (14,782) (69,221) (287,262) 2,169,460 113,847 17,091 388,145 7,733 6,749 19,831,545

(236,590) (36,925) (198,964) 296,031 63,114 7,390 241,656 12,498 22,776 10,112,854

2,733,536 (126,384) 2,607,152

1,907,110 (82,363) 1,824,747

See accompanying notes to the basic financial statements.

452,786 (2,379)

133,763 4,548 (720,688) (399,216) 191,402 433,327 25,137 546,933 18,839 (3,281) 1,877,775

(43,896) (43,896)

12,928,223 452,718

2,415,882 189,602

(1,318,889) (24,385) (193,761) (1,080,784) (1,459,922) 2,341,436 1,080,784 419,829 81,942 1,988,425 57,086 34,208 52,070,056

226,663 (164,258) 6,000 18,112 427,909 994,015 145,381 965,158 22,110 2,563,557

4,640,646 (342,920) 4,297,726

$ $

(71,330) (71,330)

CITY OF EDMOND, OKLAHOMA ANNUAL FINANCIAL REPORT June 30, 2017

City of Edmond, Oklahoma Statement of Fiduciary Net Position Fiduciary Funds June 30, 2017

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

1,031,914 51,423 1,083,337

Agency Funds $

1,010,299 38,844,490 17,343,863 12,139,054 69,337,706 70,421,043

26,656 613,110

11,664 2,500 14,164

17,156 595,954 613,110

70,406,879

See accompanying notes to the basic financial statements.

586,454 586,454

CITY OF EDMOND, OKLAHOMA ANNUAL FINANCIAL REPORT June 30, 2017 City of Edmond, Oklahoma Statement of Changes in Fiduciary Net Position Fiduciary Funds For the Year Ended June 30, 2017

Pension Trust Fund ADDITIONS Contributions: Employer Plan Members Total contributions Investment earnings: Investment income Investment activity expense Total net investment earnings Total additions

2,465,138 1,458,953 3,924,091 7,083,606 (174,308) 6,909,298 10,833,389

DEDUCTIONS Benefits Refunds of contributions Administrative Miscellaneous expense Total deductions

2,457,234 694,892 11,018 1,032 3,164,176

Change in net position

7,669,213

Net position - beginning Net position - ending

62,737,666 70,406,879

See accompanying notes to the basic financial statements.

THIS PAGE INTENTIONALLY LEFT BLANK

CITY OF EDMOND, OKLAHOMA ANNUAL FINANCIAL REPORT June 30, 2017

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 F. SUBSEQUENT EVENTS

CITY OF EDMOND, OKLAHOMA ANNUAL FINANCIAL REPORT June 30, 2017 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, 2017 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, 2017

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 five major governmental funds: General Fund Fire Public Safety Limited Tax Fund Police Public Safety Limited Tax Fund 2000 Capital Improvement Tax Fund 2012 Public Safety Center 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 Fund and the Park Special Events 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, 2017 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 2012 Public Safety Center Tax Fund – used to account for the proceeds of a five year half cent voterrestricted limited purpose sales tax to be used for the development of the City’s Public Safety Center and other capital projects as approved by the voters. 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 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, 2017 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 net position 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.

CITY OF EDMOND, OKLAHOMA ANNUAL FINANCIAL REPORT June 30, 2017 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, 2017 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 f 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. Interest costs, net of interest earned on any invested capital debt proceeds, are capitalized when incurred by proprietary funds. 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, 2017 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 to and deferred amounts related to pensions. 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, deferred inflows are reporting the fair value of hedging a derivative and the amounts related to pensions. 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, 2017

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, 2017

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, 2017

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 2012 Capital Improvement Tax Fund-PSC to account for building the new Public Safety Center and other capital projects per voter approval. This sales tax expired March 30, 2017. 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 $84,350,000 of Series 2010, 2012, 2013, 2014, 2014B, 2015, and 2016 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, 56

CITY OF EDMOND, OKLAHOMA ANNUAL FINANCIAL REPORT June 30, 2017 2026, 2024, and 2047 respectively. The total principal and interest payable for the remainder of the life of these bonds is $155,465,849. Pledged sales taxes received in the current year were $12,587,120 for the bonds and the net utility revenues were $40,504,747. Debt service payments for the bonds of $15,578,982 for the current fiscal year were 123% of the pledged sales taxes and 29% 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 $84,990,000 of 2014, 2015, and 2016 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 2047 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 $113,978,338. 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 $12,587,120 were returned to the General Fund. The debt service payments on the bonds and notes this year were $9,619,153 which was 19.6% of pledged net utility revenues of $49,201,349 and 15.6% 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 Effective July 1, 2016, the City implemented GASB Statement No. 77, Tax Abatement Disclosures - GASB 77 was issued in August 2015, and establishes financial reporting standards for tax abatement agreements entered into by state and local governments. The disclosures required by this Statement encompass tax abatements resulting from both (a) agreements that are entered into by the reporting government and (b) agreements that are entered into by other governments and that reduce the reporting government’s tax revenues. The requirements of this Statement are effective for financial statements for periods beginning after December 15, 2015. The City has included additional disclosures as it relates to this statement. 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, 2017, the City reported a deficit in the CDBG Entitlement 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:

CITY OF EDMOND, OKLAHOMA ANNUAL FINANCIAL REPORT June 30, 2017 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 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;

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.

CITY OF EDMOND, OKLAHOMA ANNUAL FINANCIAL REPORT June 30, 2017 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, and 2016 series sales tax and utility revenue bond indentures require (1) a reserve account balance $8,335,000 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, 2017. 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, 2017.

CITY OF EDMOND, OKLAHOMA ANNUAL FINANCIAL REPORT June 30, 2017 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

R a ting

C a te go ry (3)

De m a nd

n/a

Tim e de po s its

49,676,054

n/a

28,450,000

M o ne y m a rke t a c c o unts

67,304,607

n/a

67,304,607

U.S . Tre a s ury Obliga tio ns

7,339,736

(1)

Le ve l I

5,159,371

2,180,365

115,563,959

(2)

Le ve l II

56,609,554

58,954,405

17,343,863

Le ve l I

S ub-to ta l

294,571,669

$ 37,343,450

$ 157,523,532

6 - 10

n/a

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

1- 5

37,343,450

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

$ 37,343,450

Le s s Tha n One

21,226,054

$ 82,360,824

17,343,863 $ 17,343,863

M utua l F unds : Alte rna tive

12,139,053

n/a

Le ve l I

Equity F unds

38,844,491

n/a

Le ve l I

n/a

Le ve l I

S ub-to ta l M utua l F unds

50,983,544

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

1,010,299 $

346,565,512

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

44,866,588 153,387,758

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

58,649,557

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

4,917,530

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

6,469,583

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

7,318,422

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

70,369,620

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

586,454 $

346,565,512

** 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, 2017 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, 2017, 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 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, 2017, the City had a total portfolio concentration of credit risk in the following investments: FAMC 1.0%, FFCB 11.4%, FHLB 21.0%, FHLMC 5.0%, FNMA 3.0%. 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%. Asset allocation guidelines for the Plan are as follows: 61

CITY OF EDMOND, OKLAHOMA ANNUAL FINANCIAL REPORT June 30, 2017

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 2017 Pre se nt 22% 22% 7% 17% 10% 5% 4%

Master Limited Partnerships

10%

Other

Rate of return. For the year ended June 30, 2017, the annual money-weighted rate of return on pension plan investments, net of pension plan investment expense, was 10.99 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 $386,349 at June 30, 2017 and were properly insured and collateralized. In addition, deposits of the Historical Preservation Trust of $89,184 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, 2017

Effective Date

Associated Debt

T ermination Contract Change in Fair Date Interest Rate Value

Fair Value at June 30, 2017

Credit Rating

Counterparty

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

5/13/2003

7/1/2021

4.570%

(111,680)

446,553 JPMorgan

A+

7/1/2023

4.650%

(61,632)

369,457 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%

(24,149)

185,292 JPMorgan

A+

Reserve Fund

8/24/2004

7/1/2024

4.876%

(67,634)

478,447 JPMorgan

A+

Total governmental activities:

(265,095) $

1,479,749

Business-type Activities:

2014 Sales T ax & Utility Revenue Bonds: Debt Service

8/24/2004

7/1/2024

4.500%

(21,752)

166,908 JPMorgan

A+

Reserve Fund

8/24/2004

7/1/2024

4.876%

(60,923)

430,975 JPMorgan

A+

(82,675) $

597,883

(347,770) $

2,077,632

Total business-type activitie s:

Total

Fair value was determined using expected cash flows discounted to the treasury curve at June 30, 2017. Credit risk – The counterparty to the forward sale contract derivative agreements is JPMorgan serving as guarantor. At June 30, 2017, 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, 2017

Business-T ype Activities:

Electric Fund Utilities Receivable

Water Fund

$ 15,121,714

Less:allowance for uncollectible accounts

$ 3,932,165

(1,089,798)

Utilities receivable, net of allowance

$ 14,031,916

Wastewater Fund

Sanitation Fund

$ 1,825,773

$ 1,052,201

(184,770) $ 3,747,395

(187,046) $ 1,638,727

Drainage Fund $

225,908

191,417

(96,364) $

955,837

T otal $ 22,157,761

(34,491)

(1,592,469) $ 20,565,292

Other Receivables-Business-T ype Activities

155,537

T otal Accounts Receivable-Business-T ype Activities

$ 20,720,829

Governmental Activities:

Fines Receivable Other receivables

Less: allowance for uncollectible accounts

2,017,187

Other T axes Receivable

Park & Recreation Receivable

Miscellaneous Receivables

539,177

(1,527,616)

Other receivables, net of allowance

489,571

56,754 -

539,177

56,754

321,874

T otal $ 2,934,992

(1,527,616)

321,874

$ 1,407,376

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 Investments

Noncurrent Cash and cash equivalents Investments

T otal

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

10,863,966

$ 2,788,521

$ 5,156,996

18,809,483

10,863,966

$ 2,788,521

$ 5,156,996

18,809,483

7,482,741

13,565,623

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

240,394

$ 3,681,062

2,161,426

4,558,791

40,302,850

118,345

40,421,195

4,917,530

$ 3,681,062

$ 2,161,426

47,785,591

58,545,609

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

41,270

CITY OF EDMOND, OKLAHOMA ANNUAL FINANCIAL REPORT June 30, 2017 3.D. CAPITAL ASSETS Capital asset activity for the fiscal year ended June 30, 2017 was as follows: B a la nc e a t J uly 1, 2016

Additio ns

De duc tio ns

B a la nc e a t J une 30, 2017

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

15,207,778

2,505,104

17,712,882

24,855,083

26,996,032

(16,417,511)

35,433,604

40,062,861

29,501,136

(16,417,511)

53,146,486

De pre c ia ble : B uildings

109,866,196

700,559

Im pro ve m e nts

34,322,895

6,392,449

53,024,110

3,962,760

M a c hine ry a nd e quipm e nt Infra s truc ture To ta l de pre c ia ble a s s e ts a t his to ric a l c o s t

308,372,348

9,048,962

505,585,549

20,104,730

110,566,755 40,715,344

(2,405,378)

54,581,492

317,421,310

(2,405,378)

523,284,901

Le s s a c c um ula te d de pre c ia tio n (20,396,569)

(3,258,003)

(23,654,572)

Im pro ve m e nts

B uildings

(21,680,719)

(2,102,624)

(23,783,343)

M a c hine ry a nd e quipm e nt

(29,129,868)

(3,161,548)

(160,862,327)

(9,419,071)

(232,069,483)

(17,941,246)

273,516,066

2,163,484

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

313,578,927

2,350,922

1,638,293

(30,653,123)

(170,281,398)

1,638,293

(248,372,436)

(767,085)

31,664,620

220,270

(17,184,596)

274,912,465 $

328,058,951

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

18,761,662

20,903,437

(4,903,989)

34,761,110

21,112,584

21,123,707

(4,903,989)

37,332,302

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

8,997,224

Inta ngible wa te r rights

320,019

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

(62,536)

9,254,707

30,954,585

310,215,994

11,382,121

397,144,418

11,702,140

(62,536)

321,598,115 408,784,022

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

(9,523,703)

(939,868)

Im pro ve m e nts

(5,969,543)

(223,193)

(6,192,736)

M a c hine ry a nd e quipm e nt

(5,318,239)

(457,581)

49,247

(5,726,573)

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

(10,463,571)

(16,760,718)

(644,232)

(17,404,950)

(147,960,338)

(10,663,349)

(158,623,687)

(185,532,541)

(12,928,223)

49,247

211,611,877

(1,226,083)

(13,289)

232,724,461

19,897,624

(4,917,278)

(198,411,517) 210,372,505 $

247,704,807

CITY OF EDMOND, OKLAHOMA ANNUAL FINANCIAL REPORT June 30, 2017

B a la nc e a t J uly 1, 2016 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

De duc tio ns

B a la nc e a t J une 30, 2017

100,450 100,450

300,495 300,495

(205,715) (205,715) 94,780

(28,504) (28,504) (28,504)

(234,219) (234,219) 66,276

(28,504)

166,726

(1,844) (1,844)

41,846 41,846

195,230

40,775 40,775

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

100,450 100,450

Additio ns

2,915 2,915

(30,847)

(2,805)

1,844

(30,847)

(2,805)

1,844

9,928

110

(31,808) (31,808) $

10,038

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

956,247 2,308,332 9,692,414 2,313,623 254,748 2,415,882

17,941,246

Electric Water Sanitation Wastewater Arcadia Lake Drainage Golf Course

3,149,155 6,945,465 20,865 2,380,817 205,485 66,375 160,061

T otal business-type activities depreciation expense

12,928,223

Depreciation expense charged to business-type activities:

CITY OF EDMOND, OKLAHOMA ANNUAL FINANCIAL REPORT June 30, 2017 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, 2017, 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

375,435 3,378,900 3,754,335

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.

$ 5,805,000

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.

8,195,000

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.

8,615,000

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.

9,488,947

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.

17,155,000

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

$49,258,947 3,425,895 (1,057,729) $ 51,627,113

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

6,701,393 45,983,449 (1,057,729) $ 51,627,113

CITY OF EDMOND, OKLAHOMA ANNUAL FINANCIAL REPORT June 30, 2017 Business-type Activities Long-Term Debt As of June 30, 2017, 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.

$8,196,744

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.

16,110,000

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.

41,795,000

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

66,101,744 6,749,273 (596,974) $ 72,254,043 $ 5,298,607 67,552,410 (596,974) $ 72,254,043

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.

$ 1,433,263

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.

12,255,000 $ 13,688,263

Current portion Non-current portion Total Note Payable

$ 1,341,102 12,347,161 $ 13,688,263

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.

$ 10,118

Capital lease with Oklahoma Municipal Power Authority related to Loop Lease Program (Addison), original lease amount of $14,903, payable in monthly installments of $184, interest at 1%, final maturity March 2023.

12,144 $ 22,262

CITY OF EDMOND, OKLAHOMA ANNUAL FINANCIAL REPORT June 30, 2017 Current portion Non-current portion Total Note Payable

$ 4,584 17,678 $ 22,262

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

$ 75,312 677,808 $753,120

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, 2017, are as follows: Current portion Non-current portion Total Accrued Compensated Absences

$2,846 25,614 $28,460

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, 2017: B a la nce J uly 1, 2016

Additio ns

De ductio ns

B a la nc e J une 30, 2017

Am o unt due in o ne ye a r

49,258,947

$ 6,701,393

3,754,335

375,435

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

$ 55,788,256

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

3,609,506

2,717,415

$ 59,397,762

2,717,415

6,529,309 2,572,586

9,101,895

53,013,282

$ 7,076,828

1,311,102

13,688,263

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

14,999,365

39,013

16,751

22,262

4,584

28,716,894

41,795,000

4,410,150

66,101,744

5,298,607

718,912

2,490,335

2,456,127

753,120

75,312

44,474,184

$ 44,285,335

8,194,130

80,565,389

$ 6,719,605

31,784

30,186

28,460

R e ve nue B o nds P a ya ble Ac c rue d C o m pe ns ate d Abs e nce s

1,341,102

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

26,862

2,846

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

CITY OF EDMOND, OKLAHOMA ANNUAL FINANCIAL REPORT June 30, 2017

Debt Service Requirements to Maturity - Primary Government The annual debt service requirements to maturity for long-term debt as of June 30, 2017 are as follows: Gove rnme ntal-Type Activitie s Revenue Bonds Payable Year Ending June 30,

Principal

2018

Interest

6,701,393

1,732,913

2019

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

2023-2026

14,835,644 T otal

1,241,563

49,258,947

7,489,466

Busine ss-Type Activities Notes Payable Year Ending June 30, 2018

Principal $

1,341,102

Revenue Bonds Payable Interest

Principal

349,368

Capital Lease Obligations Payable

Interest

5,298,607

$ 2,671,399

Principal $

4,584

Interest $

201

2019

1,381,102

315,223

3,223,367

2,492,493

4,632

153

2020

1,411,102

280,019

3,435,235

2,360,325

4,677

108

2021

1,451,102

243,859

3,579,734

2,215,338

4,726

2022

1,491,102

206,568

3,734,754

2,050,899

2,178

2023-2027

6,612,753

438,862

13,268,788

7,604,563

1,465

2028-2032

6,005,000

5,639,725

2033-2037

7,440,000

4,198,000

2038-2042

9,055,000

2,553,900

2043-2047

11,061,259

829,050

66,101,744

$ 32,615,692

T otal

$ 13,688,263

$ 1,833,899

22,262

553

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, 2017 Primary Government: Utility System Revenue Bonds, Series 1977 $40,000 Utility System Revenue Bonds, Series 2003B 940,000 Utility System Revenue Bonds, Series 2004 6,625,000 Sales Tax and Utility Revenue Bonds, Series 2004 9,030,000 Sales Tax and Utility Revenue Bonds, Series 2005 18,460,000 Utility System Revenue Bonds, Series 2005 17,510,000 Total Outstanding Defeased Bonds

$52,605,000

CITY OF EDMOND, OKLAHOMA ANNUAL FINANCIAL REPORT June 30, 2017

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, 2017: Outstanding Original Issue June 30, 2017 EEDA - Student Housing Revenue Bonds 2001A (UCO Student Housing Foundation) $8,305,000 $6,230,000 EEDA - Revenue Note 2000 (UCO Music Lab Project) (UCO Foundation)

1,135,000 $9,440,000

531,709 $6,761,709

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.

CITY OF EDMOND, OKLAHOMA ANNUAL FINANCIAL REPORT June 30, 2017 3.F. INTERFUND BALANCES AND ACTIVITIES Reconciliation to fund financial statements: Primary Government Governmental Activities Other Governmental Funds

General DUE FROM OTHER FUNDS Primary Government Governmental Activities General Police Public Safety Limited Tax 2000 Capital Improvement Fund Other governmental funds Total governmental funds Internal service funds Total

Total Governmental Funds

Total Governmental Activities

Internal Service Funds

1,140,574 1,140,574 1,140,574

1,140,574

18,016

$ 1,124,811

1,142,827

18,016

1,124,811

1,142,827

18,016

1,124,811

1,142,827

2,253

18,016

$ 1,127,064

Due From Other Funds

Due to Other Funds

Net Internal Balances

$ 1,140,574

$ 1,142,827

1,373,148

1,370,895

$ 2,513,722

1,140,574 1,140,574 1,140,574

Total due from other funds $ 1,140,574

DUE TO OTHER FUNDS Primary Government Governmental Activities General

Total governmental funds Internal service funds Total governmental activities Business Type Activities Other enterprise funds Total business-type activities Total due to other funds

Reconciliation to Fund Financial Statements: Governmental Funds Proprietary Funds Total

1,145,080

(2,253) 2,253

1,145,080

CITY OF EDMOND, OKLAHOMA ANNUAL FINANCIAL REPORT June 30, 2017 Primary Gove rnme nt Business-type Activities Other Enterprise Funds DUE FRO M O THER FUNDS Primary Gove rnme nt Governm ental Activities General Fire Public Safety Limited T ax Police Public Safety Limited T ax 2000 Capital Improvement Fund Other governmental funds T otal governmental funds Internal service funds T otal Business Type Activities PWA-Electric PWA-Water PWA-Wastewater Other enterprise funds T otal business-type activities

2,253 2,253 2,253

T otal

2,253 2,253 2,253

369,231 69,221 36,925 897,771 1,373,148

1,375,401

$ 1,375,401

PWA-Electric

470,496

PWA-Water

255,117

PWA-Wastewater

195,039

Other enterprise funds

450,243

1,370,895

$ 1,370,895

Total due from othe r funds

DUE TO O THER FUNDS Business Type Activities

T otal business-type activities Total due to othe r funds

Interfund transfers for the year ended June 30, 2017 were as follows: 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 * Hospital Sale T rust Fund * * 2012 Public Safety Capital Impr.Fun * 2000 Capital Improvement Fund

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

Amount 3,861,180 205,760 12,587,120 353,424 276,035 100,000 15,885,555 19,486,281 48,000 19,300 485,396 900,000 12,587,120 1,010,000 268,210 25,500 $ 68,098,881

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

CITY OF EDMOND, OKLAHOMA ANNUAL FINANCIAL REPORT June 30, 2017

Reconciliation to fund financial statements: Governmental Funds: General Fund Fire Public Safety Limited T ax Fund Police Public Safety Limit T ax Fund 2000 Capital Improvement T ax Fund 2012 Public Safety Center T ax Fund Other Governmental Funds T otal Governmental Funds Proprie tary Funds: Enterprise Funds: Electric Water Wastewater Other Enterprise Funds T otal Enterprise Funds T otals

T ransfer to Other Funds

T ransfers from Other Funds

$ 49,411,652 25,500 268,210 1,110,000 50,815,362

$ 18,393,519 15,885,554 19,486,282 361,010 54,126,365

3,861,180 12,792,880 276,035 353,424 17,283,519

12,587,120 1,385,396 13,972,516

$ 68,098,881

Reconciliation to State ment of Activitie s: Net transfers for governmental activities: Governmental Funds T otal Net transfers for governmental activities

T ransfer to Other Funds

T ransfer from Other Funds

Net T ransfers

$ (50,815,362) $ (50,815,362)

$ 54,126,365 $ 54,126,365

$ $

3,311,003 3,311,003

Net transfers for business-type activities: Enterprise Funds T otal Net transfers for business-type activities

$ (17,283,519) $ (17,283,519)

$ 13,972,516 $ 13,972,516

$ $

(3,311,003) (3,311,003)

Transfers between the primary government and component units for the year ended June 30, 2017 were as follows: Transfe r From

Transfe r To

General Fund

EEDA

Amount

Nature of Transfe r

572,420

Operating subsidy

CITY OF EDMOND, OKLAHOMA ANNUAL FINANCIAL REPORT June 30, 2017

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

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 Senior Center Fund Park Sales T ax Fund Art in Public Places Fund Roadway Improvement Fund 1996 Capital Improvement Fund 2012 Public Safety Center T ax 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

7,257,723 638,605 7,896,328 603,028 74,593 677,621 2,660,047 12,122,150 5,993,091 20,569,609 241,824 559,909 67,893 10,199 139,111 1,418,697 58,498 43,841,028

CITY OF EDMOND, OKLAHOMA ANNUAL FINANCIAL REPORT June 30, 2017 The following table shows the fund balance classifications as shown on the Governmental Funds Balance Sheet in accordance with GASB Statement 54: 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

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

Othe r 2012 P ublic S a fe ty C e nte r Go ve rnm e nta l F und Ta x To ta l

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

12,122,150

5,993,091 -

5,993,091 12,122,150

Ho s pita l s a le trus t

7,257,723

Am bula nc e s e rvic e s

638,605

Ec o no m ic de ve lo pm e nt

58,498

C a pita l im pro ve m e nts

2,703,101

25,469,900

S tre e t im pro ve m e nts

10,199

Art in public pla c e s

67,893

67,893 559,909

20,569,609

2,197,190

C ulture a nd re c pro gra m s

559,909

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

74,593

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

241,824

603,028

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

665,570

603,028

665,570 1,668,558

1,668,558

115

325,804

2,660,047

12,122,150

5,993,091

20,569,609

2,197,190

12,215,373

55,757,460

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

3,444

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

3,444

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

24,830

1,188,737

4,682,362

C ulture a nd re c pro gra m s

60,966

330,887

391,853

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

4,809

Art in public pla c e s

7,626

S tre e t im pro ve m e nts

884

P o lic e o pe ra tio ns

1,039,085

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

829,435

1,039,085

762,288

3,468,795

884

762,288

18,894

848,329 35,171

P o lic e -drug pro gra m s

35,171

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

11,774

Am bula nc e s e rvic e s

15,378

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

572,378 1,462,779 5,419,733 $ 9,542,559

762,288

1,039,085

$ 12,884,438

7,032,176

3,468,795

24,830

$ 24,038,404

2,222,020

1,614,160

572,378 8,371,937

(50,046)

5,369,687

$ 13,782,931

$ 69,502,528

CITY OF EDMOND, OKLAHOMA ANNUAL FINANCIAL REPORT June 30, 2017

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, 2017: Deferred Outflow Police Pension

Fire Pension Single Employer Plan Totals

Deferred Inflow

6,546,078 $

Net Pension Liability

601,597 $

5,214,739 $

7,443,516

15,617

45,986,170

11,399,646

162,005

19,919,368

25,389,240 $

779,219 $

71,120,277 $

Pension Expense 1,903,700 5,106,834 4,469,949 11,480,483

Reconciliation to government-wide financials; Governmental

Bussiness-type

65,171,834 5,754,480

Component unit

193,963 $

71,120,277

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, 2017 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, 2017

Trend Information Oklahoma Police Pension and Retirement System: Contributions to the police pension plan from the City were $1,349,366. The State of Oklahoma also made onbehalf contributions to OPPRS in the amount of $1,231,834 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 $1,222,949. 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 $1,501,841. The State of Oklahoma also made on-behalf contributions to OPPRS in the amount of $3,700,999 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 $3,475,375. 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, 2017, the City reported a liability of $5,214,739 for its proportionate share of the Police net pension liability. The net pension liability was measured as of June 30, 2016, 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, 2016. Based upon this information, the City’s proportion was 3.405 percent. For the year ended June 30, 2017, the City recognized pension expense of $1,903,700. At June 30, 2017, 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

16,729

585,772

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

5,010,476

169,507

15,825

City contributions subsequent to the measure date

1,349,366

Total

6,546,078

601,597

The $1,349,366 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, 2018. 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, 2017

Year ended June 30: 2018

762,204

2019

762,204

2020

1,787,742

2021

1,267,628

2022

15,337 $

4,595,115

Oklahoma Firefighters Pension and Retirement System: At June 30, 2017, the City reported a net pension liability of $45,986,170 for its proportionate share of the total net pension liability. The net pension liability was measured as of June 30, 2016, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of July 1, 2016. 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, 2016. Based upon this information, the City’s proportion was 3.7641 percent. For the year ended June 30, 2017, the City recognized pension expense of $5,106,834. At June 30, 2017, 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

1,232,763

Net difference between projected and actual earnings on pension plan investments

2,813,647

Changes in proportion

1,895,265

City contributions during measurement date

15,617

City contributions subsequent to the measure date

1,501,841

Total

7,443,516

15,617

The $1,501,841 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, 2018. 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: 2018

2019

715,042

2020

2,179,864

2021

1,717,585

2022

475,762

thereafter

122,763 $

715,042

5,926,058

CITY OF EDMOND, OKLAHOMA ANNUAL FINANCIAL REPORT June 30, 2017

Actuarial Assumptions Oklahoma Police Pension and Retirement System: The total pension liability was determined by an actuarial valuation as of July 1, 2016, 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, 2016, 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, 2016, are summarized in the following table: Long-Term Expected Asset Class

Real Rate of Return

Fixed income

3.27%

Domestic equity

5.16%

International equity

8.61%

Real estate

4.97%

Private equity

8.32%

Commodities

2.42%

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 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. 81

CITY OF EDMOND, OKLAHOMA ANNUAL FINANCIAL REPORT June 30, 2017 Oklahoma Firefighters Pension and Retirement System: The total pension liability was determined by an actuarial valuation as of July 1, 2016, 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, 2016 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, 2016, are summarized in the following table: Asset Class

Target

Long-Term Expected

Allocation

Real Rate of Return

Fixed income

20%

5.18%

Domestic equity

47%

8.70%

International equity

15%

10.87%

Real estate

10%

7.23%

Other assets

6.24%

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 Plan’s 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: 1% Decrease

Current Discount

1% Increase

(6.5%)

Rate (7.5%)

(8.5%)

Police Pension net pension liability (asset)

13,681,777

5,214,739

(1,934,381)

Fire Pension net pension liability

58,214,683

45,986,170

35,733,637

CITY OF EDMOND, OKLAHOMA ANNUAL FINANCIAL REPORT June 30, 2017

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, 2016. The System’s pension liability was based on an actuarial valuation as of June 30, 2016. Pension payments made by the City from the measurement date to June 30, 2017 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, 2017, 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

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 83

CITY OF EDMOND, OKLAHOMA ANNUAL FINANCIAL REPORT June 30, 2017

Benefits paid:

Calculated on the average gross salary of a participant’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 9.45% of covered payroll to the System, however, the City elected to contribute 8.99% which was the actuarial determined contribution rate from the prior year. These amounts were actuarially determined. System participants of the City contributed $1,427,729 during fiscal year 2017, and the City contributed $2,441,166. The Component Unit (EEDA) is also required to contribute 9.45% of covered payroll to the System. These amounts were actuarially determined. System participants of EEDA contributed $14,018 during fiscal year 2017, and EEDA contributed their portion of $24,004. Plan Membership Non-vested active members Fully vested active members

192 281

Total Active members

473

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

186 659

Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions At June 30, 2017, the City reported a liability of $19,725,405 and the EEDA component unit $193,963 for their proportionate share of the net pension liability. The net pension liability was measured as of June 30, 2016, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of July 1, 2016. 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, 2016 and the City’s report ending date of June 30, 2017, that would have had a significant impact on the net pension liability. The following table reports the components of changes in net pension liability:

Balances at beginning of year, 7/1/2015

Total Pension

Plan Net

Net Pension

Liability

Position

Liability

77,150,952

63,743,608

$ 13,407,344

2,822,532

Changes for the year: Service cost

2,822,532

Interest expense

5,565,362

Contributions – employer

2,292,339

(2,292,339)

Contributions – employee

1,400,380

(1,400,380)

Net investment income

(1,060,450)

1,060,450

Benefits paid

(3,610,999)

Difference between actual and expected experience

729,188

Plan administrative expenses Net changes Balances at end of year, 7/1/2016

(3,610,999)

5,565,362

729,188

(27,211)

27,211

5,506,083

(1,005,941)

6,512,024

82,657,035

62,737,667

$ 19,919,368

CITY OF EDMOND, OKLAHOMA ANNUAL FINANCIAL REPORT June 30, 2017

For the year ended June 30, 2017, the City recognized pension expense of $4,426,424 and EEDA recognized pension expense of $43,525. At June 30, 2017, 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

1,424,112

14,005

Net difference between projected and actual earnings on pension plan investments

7,262,939

Change in proportion

158,192

71,417

146,104

3,811

15,901

City contributions subsequent to the measure date

2,441,166

Total

$ 11,286,409

146,104

24,004

113,237

15,901

The City’s $2,441,166 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, 2018. 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 2018

Component Unit

2,061,420

18,121

2019

2,061,420

18,121

2020

2,888,896

26,258

2021

1,417,443

11,789

2022

186,342

thereafter

(280)

83,618 $

(677)

8,699,139

73,332

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

7.25%

Long-term expected rate of return M easurement date

7.25% 7/1/2015

Inflation

2.50%

Projected salary increase*

Age-related

M ortality

RP 2000 projected with cohort projection

Retirement rates*

Experience

Turnover*

Experience

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. 85

CITY OF EDMOND, OKLAHOMA ANNUAL FINANCIAL REPORT June 30, 2017

No changes in assumptions were made during fiscal year 2017. 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, 2016, 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 planâ&#x20AC;&#x2122;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. 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 - 2016

31,333,073

19,919,368

10,438,994

Employer's Net Pension Liability - 2017

30,108,437

18,051,069

8,028,082

CITY OF EDMOND, OKLAHOMA ANNUAL FINANCIAL REPORT June 30, 2017 The components of the net pension liability of the City June 30, 2016 and 2017, were as follows: 2016 Total Net Pension Liability

Plan fiduciary Net Position

2017

82,657,036

62,737,666

Net Pension Liability

Plan Fiduciary Net Position as a percentage of

19,919,370 75.90%

88,472,906 70,421,837

18,051,069 79.60%

the total pension liability

Other Post-Employment Benefits Plan Description: City provides 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. As of June 30, 2017, approximately 34 retired employees and 20 survivors are receiving benefits under this plan. Funding Policy. The contribution requirement of the City is an implicit subsidy. The implicit subsidy is not a direct payment from the employer on behalf of the member but rather stems from retiree contribution levels that are less than the claims cost at retiree ages. Since claims experience for employees and non-Medicare eligible retirees are pooled when determining premiums, these retired members pay a premium based on a pool of members that, on average, are younger and healthier. There is an implicit subsidy from the employee group since the premiums paid by the retirees are lower than they would have been if the retirees were insured separately. The subsidies are valued using the difference between the age-based claims costs and the premium paid by the retiree. The amount required to fund the implicit rate is based on projected pay-as-you-go financing requirements. For fiscal year 2017, the City contributed $162,326 to the plan. Plan members receiving benefits contributed $408,957, or approximately 69% percent of the value of coverage, through their required contribution of $450.84 per month for retiree-only Standard option coverage and $901.86 for retiree and family medical Standard option coverage. Retirees have the option to upgrade to the Enhanced option. Retirees who elected Standard option dental coverage contributed $38.71 for retiree only and $83.54 for retiree and family coverage per month. Retirees have the option to Buy Up on their dental plan for an additional $12.00 per month for retiree-only coverage or $46.00 for retiree and family coverage per month. Retirees who elected vision coverage contributed $6.84 for retiree only coverage and $13.74 for retiree and family coverage per month. Annual OPEB Cost and Net OPEB Obligation. The City's annual other postemployment benefit (OPEB) cost (expense) is calculated based on the annual required contribution of the employer (ARC), an amount actuarially determined in accordance with the parameters of GASB Statement 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed thirty years. The following table shows the components of the City's annual OPEB cost, the amount actually contributed to the plan, and changes in the Cityâ&#x20AC;&#x2122;s net OPEB obligation for the year ended June 30, 2017:

CITY OF EDMOND, OKLAHOMA ANNUAL FINANCIAL REPORT June 30, 2017

Annual required contribution

Interest on net OPEB obligation

772,339 101,480

Adjustment to annual required contribution

(233,843)

Annual OPEB cost (expense)

639,976

Contributions made

(162,326)

Increase in net OPEB obligation

477,650

Net OPEB obligation-beginning of year

3,148,179

Net OPEB obligation-end of year

3,625,829

The City's annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net unfunded OPEB obligation for 2017 was as follows: Percentage of Annual OPEB Cost Contributed

Fiscal Year

Annual OPEB Cost

Net Employer Contribution

Net OPEB Obligation

6/30/2009

445,942

137,552

31%

308,390

6/30/2010

461,362

142,366

31%

627,386

6/30/2011

443,179

144,403

33%

926,162

6/30/2012

520,882

144,402

28%

1,302,641

6/30/2013

597,062

188,856

32%

1,710,847

6/30/2014

600,226

188,858

31%

2,122,215

6/30/2015

740,937

105,686

14%

2,757,465

6/30/2016

553,041

162,326

29%

3,148,180

6/30/2017

639,976

162,326

25%

3,625,829

Funded Status and Funding Progress. As of June 30, 2016, the most recent actuarial valuation date, the plan was 0 percent funded. The actuarial accrued liability for benefits was $5.3 million, and the actuarial value of assets was zero, resulting in an unfunded actuarial accrued liability (UAAL) of $5.3 million. The covered payroll (annual payroll of active employees covered by the plan) was $39.0 million, and the ratio of the UAAL to the covered payroll was 13 percent. Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and the healthcare cost trend. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The schedule of funding progress, presented as required supplementary information following the notes to the financial statements, presents multiyear trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits. The schedule of funding progress, presented at RSI following the notes to the financial statements, presents multiyear trend information about whether the actuarial value of plan assets are increasing or decreasing over time relative to the actuarial liability for benefits.

CITY OF EDMOND, OKLAHOMA ANNUAL FINANCIAL REPORT June 30, 2017 Actuarial Methods and Assumptions. Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and the plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculations. Actuarial cost method Amortization method Remaining amortization period Inflation rate Asset valuation method Investments return Projected salary increases Cost of living adjustments Healthcare cost trend rate

Entry Age Normal level payments, open 22 years 2.5% 3.58% (discount rate) N/A (unfunded) N/A N/A 6.09% in 2017 graded to 4.87% in 2060

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.

CITY OF EDMOND, OKLAHOMA ANNUAL FINANCIAL REPORT June 30, 2017 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, 2015 to June 30, 2017, are as follows: Workers' Compensation Claim liability, June 30, 2015 Claims and changes in estimates Claims payments Claim liability, June 30, 2016 Claims and changes in estimates Claims payments Claim liability, June 30, 2017

1,656,000 138,216 (259,216) 1,535,000 835,272 (617,272) 1,753,000

Reconciliation to Statement of Net Position: Current portion

Health Care $

366,531 7,275,963 (7,334,309) 308,185 10,106,234 (9,314,218) 1,100,201

T ort $ 1,081,000 462,328 (463,328) $ 1,080,000 122,118 (138,118) $ 1,064,000

T otal $ 3,103,531 7,876,507 (8,056,853) $ 2,923,185 11,063,624 (10,069,608) $ 3,917,201

$ 1,797,151

Noncurrent portion

2,120,050

T otal

$ 3,917,201

4.C. COMMITMENTS AND CONTINGENCIES Construction Commitments At June 30, 2017, the City had awarded construction contracts totaling $40,090,817 for various City and EPWA projects and of this amount, $19,879,645 was outstanding and payable from various funds. 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. 90

CITY OF EDMOND, OKLAHOMA ANNUAL FINANCIAL REPORT June 30, 2017

Debt issue During FY 2017 the EPWA entered into the Series 2016 Drinking Water SRF Promissory Note with the Oklahoma Water Resources Board for a $2,500,000 loan for water improvements. The loan bears interest at a rate of 2.36% plus and administrative fee of 0.5% annually. The loan is eligible for principal forgiveness under the program. There were no draws made on the note at June 30, 2017.

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 Cityâ&#x20AC;&#x2122;s consideration of the impact of these pronouncements are described below: Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions. This Statement replaces the requirements of Statements No. 45, Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pensions, as amended, and No. 57, OPEB Measurements by Agent Employers and Agent Multiple-Employer Plans, for OPEB. Statement No. 74, Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans, establishes new accounting and financial reporting requirements for OPEB plans. This Statement is effective for fiscal years beginning after June 15, 2017. The City has not yet determined the impact that implementation of GASB 75 will have on its net position. 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. The City does not believe that GASB No. 81 will have significant impact on its financial statements. 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 84 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 85, Omnibus 2017, issued March 2017, will be effective for the City beginning with its fiscal year ending December 31, 2018. This Statement address a variety of topics including issues related to blending component units, goodwill, fair value measurement and application, and postemployment benefits. The City has not yet determined the impact that implementation of GASB 85 will have on its net position. GASB Statement 86, Certain Debt Extinguishment Issues, issued May 2017, will be effective for the City beginning with its fiscal year ending December 31, 2018. 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 91

CITY OF EDMOND, OKLAHOMA ANNUAL FINANCIAL REPORT June 30, 2017 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. The City has not yet determined the impact that implementation of GASB 86 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. 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 2017. 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. 4.F. SUBSEQUENT EVENTS In October 2017, the EPWA issued $167,025,000 of Sales Tax and Utility System Revenue Bonds. The bonds mature in principal amounts of $2,135,000 to $6,255,000 on July 1 of each year through 2037, in addition, there are term bonds due in amounts from $10,000,000 to $25,475,000 from 2042 to 2047. The bonds have an interest rate of 3.00% to 5.00%. Proceeds of the bonds will be used for wastewater improvements.

REQUIRED SUPPLEMENTARY INFORMATION

CITY OF EDMOND, OKLAHOMA REQUIRED SUPPLEMENTARY INFORMATION June 30, 2017

CITY OF EDMOND, OKLAHOMA BUDGETARY COMPARISON SCHEDULE GENERAL FUND For the fiscal year ended June 30, 2017

ORIGINAL BUDGET

FINAL BUDGET

VARIANCE WITH FINAL BUDGET POSITIVE (NEGATIVE)

ACTUAL

REVENUES TAXES: Sales tax

34,072,793

33,565,653

(507,140)

Use tax

4,222,791

4,815,239

592,448

Franchise

2,516,214

2,086,557

(429,657)

Liquor tax

43,644

56,000

40,855,442

40,523,449

Total Taxes

12,356

(331,993)

INTERGOVERNMENTAL: Grant revenues

290,577

Alcoholic beverage

135,146

136,515

1,369

Cigarette tax

796,259

755,435

(40,824)

Vehicle tax

634,558

616,325

(18,233)

Gasoline tax

157,198

178,977

21,779

1,723,161

1,977,829

254,668

Total Intergovernmental

CHARGES FOR SERVICES: Swimming pool fees

1,583

64,702

44,118

(20,584)

4,920,265

6,370,477

1,450,212

161,946

182,063

20,117

9,953

13,140

3,187

Animal welfare fees

52,571

51,757

Filing fees

69,194

70,290

1,096

911 fees

36,829

24,718

(12,111)

4,761

8,124

3,363

Total Charges for Services

5,320,221

6,766,270

1,446,049

FINES AND FORFEITURES

1,895,219

2,268,682

373,463

LICENSES AND PERMITS

1,458,775

1,452,922

(5,853)

60,000

51,871

(8,129)

224,850

450,472

225,622

51,537,668

53,491,495

1,953,827

4,488,089

16,124,338

17,383,519

1,259,181

4,488,089

16,124,338

17,383,519

1,259,181

Recreational program fees Right-of-Way fees Cemetery fees Curb cut fees

Miscellaneous charges

INVESTMENT INCOME

MISCELLANEOUS

TOTAL REVENUES

(814)

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

56,025,757

67,662,006

70,875,014

3,213,008 (Continued)

CITY OF EDMOND, OKLAHOMA REQUIRED SUPPLEMENTARY INFORMATION June 30, 2017

CITY OF EDMOND, OKLAHOMA BUDGETARY COMPARISON SCHEDULE GENERAL FUND For the fiscal year ended June 30, 2017

ORIGINAL BUDGET

FINAL BUDGET

VARIANCE WITH FINAL BUDGET POSITIVE

ACTUAL

EXPENDITURES General Governm ent: General: Other services and charges

Total General

104,352

158,002

99,542

58,460

104,352

158,002

99,542

58,460

24,545

24,640

24,639

7,050

2,250

4,800

174,750

174,655

93,185

81,470

206,345

120,074

86,271

698,516

651,054

47,462

17,547

13,805

3,742

152,215

152,225

107,056

45,169

868,278

868,288

771,915

96,373

166,017

232,827

99,865

132,962

1,716

City Council: Personal services Materials and supplies Other services and charges Total City Council

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

Total Judicial

Edmond-Guthrie Regional Airport Other services and charges

Cemetery: Personal services

143,517

148,174

146,458

Materials and supplies

12,968

12,255

713

Other services and charges

43,510

38,853

29,225

9,628

199,995

187,938

12,057

599,227

615,947

615,946

8,250

9,760

9,754

Other services and charges

31,250

19,325

16,520

2,805

Total Planning and Zoning

638,727

645,032

642,220

2,812

83,969

74,539

9,430

5,285

1,327

3,958

44,450

29,534

14,916

133,704

105,400

28,304

2,317,418

2,444,193

2,026,954

417,239

768,563

727,658

40,905

89,926

68,060

21,866

366,950

372,403

291,381

81,022

50,000

19,146

30,854

Total Community Image

1,275,439

1,280,892

1,106,245

174,647

TOTAL ECONOMIC DEVELOPMENT

1,275,439

1,280,892

1,106,245

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

174,647 (Continued)

CITY OF EDMOND, OKLAHOMA REQUIRED SUPPLEMENTARY INFORMATION June 30, 2017

CITY OF EDMOND, OKLAHOMA BUDGETARY COMPARISON SCHEDULE GENERAL FUND For the fiscal year ended June 30, 2017

ORIGINAL BUDGET

FINAL BUDGET

VARIANCE WITH FINAL BUDGET POSITIVE (NEGATIVE)

ACTUAL

PUBLIC SAFETY: Emergency Management: 215,127

215,127

155,891

59,236

Materials and supplies

Personal services

21,828

13,004

8,824

Other services and charges

48,575

43,063

5,512

Capital outlay

50,000

49,980

335,530

261,938

73,592

1,210,268

1,207,554

2,714

42,946

24,330

18,616

Total Emergency Management Building Department: Personal services Materials and supplies

94,851

53,648

41,203

Total Building Department

Other services and charges

1,348,065

1,285,532

62,533

TOTAL PUBLIC SAFETY

1,683,595

1,547,470

136,125

850,000

1,490,235

1,003,430

486,805

850,000

1,490,235

1,003,430

486,805

Other services and charges

649,745

648,896

849

TOTAL OUTSIDE AGENCIES

649,745

648,896

849

93,221

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

PARKS AND RECREATION: Parks and Recreation: Personal services

1,091,323

998,102

Material and supplies

173,093

192,093

150,718

41,375

Other services and charges

832,400

931,643

747,255

184,388

2,096,816

2,215,059

1,896,075

318,984

10,326

Total Parks and Recreation Senior Center:

339,208

328,882

Materials and supplies

Personal services

16,209

13,031

3,178

Other services and charges

59,680

44,756

14,924

415,097

386,669

28,428

Personal services

6,459

4,687

1,772

Materials and supplies

1,350

1,234

116

Other services and charges

30,275

22,100

8,175

Total Festival Marketplace

38,084

28,021

10,063

Total Senior Citizens Festival Marketplace:

Historical Society: Materials and supplies

250

Other services and charges

262,850

259,256

3,594

Total Historical Society

263,100

259,256

3,844

2,813,097

2,931,340

2,570,021

361,319

9,589,294

10,480,000

8,903,016

1,576,984

Transfers to other funds

(46,350,043)

(59,476,390)

Total Other Financing Uses

(46,350,043)

(59,476,390)

55,939,337

69,956,390

68,379,406

TOTAL PARKS AND RECREATION TOTAL EXPENDITURES

250

OTHER FINANCING SOURCES (USES)

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

86,420

(2,294,384)

2,495,608

1,576,984

4,789,992

CITY OF EDMOND, OKLAHOMA REQUIRED SUPPLEMENTARY INFORMATION June 30, 2017

City of Edmond, Oklahoma Budgetary Comparison Schedule Major Special Revenue Fund - Fire Public Safety Limited Tax Fund For the year ended June 30, 2017

Fire Public Safety Limited Tax Fund

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

4,258,527 6,000 80,000 39,531 4,384,058

Final Budget

4,258,524 6,000 80,000 39,531 4,384,055

Actual

4,214,931 297,066 10 73,363 58,947 4,644,317

Variance with Final Budget Positive (Negative)

(43,593) 297,066 (5,990) (6,637) 19,416 260,262

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

15,764,286 1,006,250 4,031,680 50,000 20,852,216

15,764,286 1,024,127 4,106,229 912,251 21,806,893

14,926,622 401,698 3,633,432 561,289 19,523,041

837,664 622,429 472,797 350,962 2,283,852

(16,468,158)

(17,422,838)

(14,878,724)

2,544,114

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

15,609,724 15,609,724

15,885,554 15,885,554

Net change in fund balance

(858,434)

(1,813,114)

1,006,830

275,830 275,830 $

2,819,944

CITY OF EDMOND, OKLAHOMA REQUIRED SUPPLEMENTARY INFORMATION June 30, 2017

City of Edmond, Oklahoma Budgetary Comparison Schedule Major Special Revenue Fund -Police Public Safety Limited Tax Fund For the year ended June 30, 2017

Police Public Safety Limited Tax Fund

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

2,132,392 1,500 50,000 27,930 2,211,822

Final Budget

2,132,392 51,000 1,500 50,000 27,930 2,262,822

Actual

2,107,465 154,755 56,040 152,665 2,470,925

Variance with Final Budget Positive (Negative)

(24,927) 103,755 (1,500) 6,040 124,735 208,103

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

17,569,458 1,096,724 4,822,216 70,000 23,558,398

17,604,389 1,104,884 4,835,724 155,639 23,700,636

17,044,759 797,419 4,599,142 85,639 22,526,959

559,630 307,465 236,582 70,000 1,173,677

(21,346,576)

(21,437,814)

(20,056,034)

1,381,780

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

19,147,929 19,147,929

19,486,282 19,486,282

Net change in fund balances

(2,198,647)

(2,289,885)

(569,752)

338,353 338,353 $

1,720,133

CITY OF EDMOND, OKLAHOMA REQUIRED SUPPLEMENTARY INFORMATION June 30, 2017

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, 2017

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, 2017

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

53,506,106 18,393,519 71,899,625 20,098,404 49,411,652 69,510,056

(10,064,738) 10,064,738 -

2,389,569

8,345,316 15,885,554 24,230,870

23,224,040 23,224,040 1,006,830

3,702,768 19,486,282 23,189,050 23,758,802 23,758,802 (569,752)

(3,700,999) (3,700,999) (3,700,999) (3,700,999) -

(1,231,843) (1,231,843) (1,231,843) (1,231,843) -

(14,611) (1,010,000) (1,024,611) (1,130,650) (1,130,650)

53,491,495 17,383,519 70,875,014 8,903,016 59,476,390 68,379,406

106,039

2,495,608

4,644,317 15,885,554 20,529,871

19,523,041 19,523,041 1,006,830

2,470,925 19,486,282 21,957,207 22,526,959 22,526,959 (569,752)

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, 2017

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

City's proportion of the net pension liability

3.0197%

3.1355%

3.4051%

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

$ (1,016,693)

$ 127,846

5,214,739

City's covered-employee payroll

$ 8,445,211

$ 8,831,635

9,974,924

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

(12.04%)

1.45%

52.28%

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

101.53%

99.82%

93.50%

Notes to Schedule: Only three 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 Contribution deficiency (excess)

City's covered-employee payroll

Contributions as a percentage of covered-employee payroll

2016

2017

1,152,006

$ 1,305,813

1,152,006

1,305,813

8,831,635

$ 9,974,924

13%

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

100

1,349,366

1,349,366 $ $

10,264,440

13%

CITY OF EDMOND, OKLAHOMA REQUIRED SUPPLEMENTARY INFORMATION June 30, 2017

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

3.5619241%

3.566186%

3.764069%

$ 37,851,799

$ 45,986,170

$ 10,528,981

City's proportionate share of the net pension liability

36,628,970

City's covered-employee payroll

9,729,108

9,743,764

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

376.49%

388.47%

436.76%

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

68.12%

68.27%

64.87%

Notes to Schedule: Only three 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

2016

2017

Statutorily required contribution

$ 1,364,114

$ 1,474,042

$ 1,501,841

Contributions in relation to the statutorily required contribution

1,364,114

1,474,042

1,501,841

Contribution deficiency (excess)

City's covered-employee payroll

$ 9,743,764

$ 10,528,981

$ 10,727,533

14%

Contributions as a percentage of covered-employee payroll

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

101

CITY OF EDMOND, OKLAHOMA REQUIRED SUPPLEMENTARY INFORMATION June 30, 2017

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)

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

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

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

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

5,799,946

$ 13,407,344

19,919,368

91.93%

82.62%

23,801,107

$ 25,382,314

24.37%

52.82%

City's net pension liability - ending (a)-(b) Plan fiduciary net position as a percentage of the total pension liability Covered-employee payroll

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

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

102

2017

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

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)

2016

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

75.90% $

26,613,450

74.85%

CITY OF EDMOND, OKLAHOMA REQUIRED SUPPLEMENTARY INFORMATION June 30, 2017

SCHEDULE OF EMPLOYER CONTRIBUTIONS SINGLE-EMPLOYER DEFINED BENEFIT PENSION PLAN Last 10 Fiscal Years For the year June 30. 2013 Actuarially determined contribution Contributions in relation to the actuarially determined contribution Contribution deficiency (excess)

Covered-employee payroll

2014 $

1,846,314 1,822,720 23,594

22,598,708

Contributions as a percentage of covered-employee payroll

2015 $

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

24,089,104

8.17%

2016 $

2,195,239 2,108,839 86,400

25,496,393

8.32%

2017 $

2,397,984 2,292,339 105,645

2,569,913 2,441,134 128,779

26,673,905

27,194,847

8.61%

8.99%

9.45%

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. 2008 Actuarially determined contribution Contributions in relation to the actuarially determined contribution Contribution deficiency (excess)

Covered-employee payroll

Contributions as a percentage of covered-employee payroll

2009

1,135,240 1,407,776 (272,536)

19,730,579 5.75%

103

$ $

1,334,008 1,271,783 62,225

21,223,530 6.29%

2010 $

2011

1,879,700 1,866,908 12,792

22,521,201

8.35%

1,803,185 1,811,247 (8,062)

21,588,603 8.35%

2012 $ $

1,803,629 1,886,892 (83,263)

22,630,229 7.97%

CITY OF EDMOND, OKLAHOMA REQUIRED SUPPLEMENTARY INFORMATION June 30, 2017

PENSION FUND - SCHEDULE OF INVESTMENT RETURNS Last 10 Fiscal Years *

Annual money-weighted rate of return, net of investment expense

Year Ended June 30. 2015

Year Ended June 30. 2016

14.55%

-3.97%

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

104

Year Ended June 30. 2017

-1.66%

CITY OF EDMOND, OKLAHOMA REQUIRED SUPPLEMENTARY INFORMATION June 30, 2017

Schedules of Required Supplementary Information OPEB ACTUARIAL VALUATION FUNDING SCHEDULES June 30, 2017 The funded status and funding progress of the City's defined benefit OPEB plan for the most recent actuarial valuations is as follows:

July 1, 2010

July 1, 2011

July 1, 2012

July 1, 2013

July 1, 2014

July 1, 2015

Actuarial accrued liability - AAL (a) Actuarial value of plan assets (b) Unfunded actuarial accrued liability-UAAL (funding excess) (a)-(b)

3,770,440 -

$ 4,239,856 -

$ 4,837,346 -

$ 4,854,278 -

$ 4,929,613 -

$ 5,344,565 -

3,770,440

4,239,856

4,837,346

4,854,278

4,929,613

5,344,565

5,208,062

Funded ratio (b)/(a) Covered payroll Â©

0% $ 33,132,000

0% $ 31,860,000

0% $ 31,783,016

0% $ 32,710,000

0% $ 36,200,000

0% $ 37,500,000

0% $ 39,000,000

11%

13%

15%

14%

13%

UAAL (funding excess) as a % of covered payroll [UAAL/( c)]

105

July 1, 2016 $

5,208,062 -

THIS PAGE INTENTIONALLY LEFT BLANK

106

OTHER SUPPLEMENTARY INFORMATION

CITY OF EDMOND, OKLAHOMA OTHER SUPPLEMENTARY INFORMATION June 30, 2017

GENERAL FUND Under GASB Statement 54 certain funds no longer met the definition to be presented as Special Revenue Funds. Those funds became accounts of the General Fund for reporting purpose. For reporting purposes, the General Fund contains the following subfund accounts: 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 FUND - The Real Property 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 FUND – The Economic Development 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 City of Edmond. PARK SPECIAL EVENTS – The Park Special Events 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, 2017

City of Edmond, Oklahoma Balance Sheet General Fund Accounts June 30, 2017

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 Due to other funds 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

294,395 1,265,525 1,140,574 6,152,547 2,504 1,057,738 9,913,283

249,901 18,016 180,372 358,118 806,407

28,091 121,761 241 150,093

Park Special Events

127,291 551,754 1,092 680,137

Total General Fund

11,421 49,506 98 61,025

461,198 1,988,546 1,140,574 6,152,547 3,935 1,057,738 10,804,538

249,901 18,016 180,372 358,118 806,407

454,718 454,718

144 144

651 651

59 59

455,572 455,572

2,660,047 572,378 5,419,733 8,652,158 9,913,283

149,949 149,949 150,093

679,486 679,486 680,137

60,966 60,966 61,025

2,660,047 1,462,779 5,419,733 9,542,559 10,804,538

108

CITY OF EDMOND, OKLAHOMA OTHER SUPPLEMENTARY INFORMATION June 30, 2017

City of Edmond, Oklahoma Statement of Revenues, Expenditures and Changes in Fund Balances General Fund Accounts For the Year Ended June 30, 2017

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

38,693,158 2,142,557 1,976,671 6,774,222 2,267,734 1,452,924 48,584 135,645 53,491,495

(9,348) (9,348)

Edmond Electric Economic Development

Park Special Events

Total General Fund

5,067 5,067

5,244,636 2,955,869 648,896 3,718,173 5,377,604 1,022,576 18,967,754

441 1,005,104 1,005,545

125,098 125,098

34,523,741

(1,014,893)

17,383,519 (49,411,652) (32,028,133) 2,495,608 6,156,550 8,652,158

5,966 316 12,610 18,892

38,693,158 2,142,557 1,976,671 6,780,188 2,267,734 1,452,924 44,619 148,255 53,506,106

7 7

5,370,175 2,955,869 648,896 3,718,180 5,377,604 2,027,680 20,098,404

(120,031)

18,885

33,407,702

1,010,000 1,010,000 (4,893)

(120,031)

18,885

18,393,519 (49,411,652) (31,018,133) 2,389,569

154,842

799,517

42,081

7,152,990

149,949

109

679,486

60,966

9,542,559

CITY OF EDMOND, OKLAHOMA OTHER SUPPLEMENTARY INFORMATION June 30, 2017

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, 2017

EDMOND ELECTRIC ECONOMIC DEVELOPMENT

Budget Revenues: Charges for services

Investment income Miscellaneous Total Revenues

Variance Positive (Negative)

Actual

5,500

5,067

5,500

PARKS SPECIAL EVENTS FUND

Budget

(433) -

5,067

(433)

Variance Positive (Negative)

Actual

3,250

5,966

2,716

316

5,000

12,610

7,610

8,250

18,892

10,642

Expenditures: General Government: Personal services

Materials and supplies Other services and charges

141,000

125,098

15,902

Capital outlay

Debt service

Total General Government

141,000

125,098

15,902

Parks and Recreation: Personal services Materials and supplies Other service and charges Capital outlay Total Parks and Recreation

Total Expenditures

3,483

4,650

8,140

8,133

141,000

125,098

15,902

8,140

8,133

Revenues and other sources over (under) expenditures and other uses

(135,500)

(120,031)

799,517

Fund Balance-beginning of year Fund Balance -end of year

3,490

664,017

15,469

799,517 $

679,486

110

15,469

18,885

42,081 $

42,191

18,775

42,081 $

60,966

18,775

CITY OF EDMOND, OKLAHOMA OTHER SUPPLEMENTARY INFORMATION June 30, 2017

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, 2017 (Continued)

REAL PROPERTY FUND

Budget

Variance Positive (Negative)

Actual

Revenues: Charges for services

Investment income Miscellaneous Total Revenues

550 1,000,000 $

(9,348) 1,010,000

1,000,550

(9,898) 10,000

1,000,652

102

Expenditures: General Government: Personal services

Materials and supplies

Other services and charges

1,095

441

654

Capital outlay

1,010,000

1,005,104

4,896

Debt service

Total General Government

1,011,095

1,005,545

5,550

Other service and charges

Capital outlay

Parks and Recreation: Personal services Materials and supplies

Total Parks and Recreation

Total Expenditures

1,011,095

1,005,545

5,550

Revenues and other sources over (under) expenditures and other uses

(10,545)

Fund Balance-beginning of year

154,842

Fund Balance -end of year

111

144,297

(4,893)

5,652

154,842 $

149,949

5,652

CITY OF EDMOND, OKLAHOMA OTHER SUPPLEMENTARY INFORMATION June 30, 2017

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, 2017

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 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 Cityâ&#x20AC;&#x2122;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 â&#x20AC;&#x201C; 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. 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, 2017

City of Edmond, Oklahoma Combining Balance Sheet Nonmajor Governmental Funds June 30, 2017

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 Other liability 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

67,070 67,070

5,558 111,558 117,116

(50,046) (50,046) $

67,070

119,520 518,067 1,024 200 638,811

Senior Center Fund $

48,465 210,075 415 258,955

1,666 1,666

Convention and Visitor's Bureau Fund $

11,026 47,792 95 48,305 107,218

29,769 29,769

Hospital Sale Trust Fund $

Ambulatory Service Fund

8,269,143 (3,723) 3,303 8,268,723

1,011,000 1,011,000

116,530 505,109 999 34,189 656,827

2,248 2,248

612 612

247 247

57 57

596 596

603,028 35,171 638,199

241,824 3,444 11,774 257,042

58,498 18,894 77,392

7,257,723 7,257,723

638,605 15,378 653,983

638,811

114

258,955

107,218

8,268,723

656,827 (Continued)

CITY OF EDMOND, OKLAHOMA OTHER SUPPLEMENTARY INFORMATION June 30, 2017

City of Edmond, Oklahoma Combining Balance Sheet Nonmajor Governmental Funds June 30, 2017

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 Other liability 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

14,875 64,475 128 79,478

Capital Improvement Fund

Art in Public Places Fund

189,259 820,356 315,344 1,624 77,012 1,403,595

511,830 511,830

14,958 64,835 129 79 80,001

4,400 5 4,405

Roadway Improvement Fund

214,467 929,623 1,839 1,145,929

1,892 1,892

1996 CIP Tax Fund

2,076 9,000 18 11,094

2017 Capital Improvement Fund

44,408 192,489 381 237,278

49,534 2,607 52,141

246,518 1,068,550 1,261,377 2,114 2,578,559

13,307 13,307

76 76

969 969

77 77

1,099 1,099

11 11

227 227

1,262 1,262

74,593 4,809 79,402

559,909 330,887 890,796

67,893 7,626 75,519

1,142,938 1,142,938

10,199 884 11,083

139,111 45,799 184,910

2,563,990 2,563,990

79,478

1,403,595

80,001

115

1,145,929

11,094

237,278

Total Governmental Funds

2,578,559

9,291,245 4,426,648 1,643,791 8,766 163,088 15,533,538

617,956 2,607 1,124,811 1,745,374

5,233 5,233

12,215,373 3,444 1,614,160 (50,046) 13,782,931 $

15,533,538

CITY OF EDMOND, OKLAHOMA OTHER SUPPLEMENTARY INFORMATION June 30, 2017

City of Edmond, Oklahoma Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds For the Year Ended June 30, 2017

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

444,352 444,352

Fund balances - beginning $

3,789 63,917 67,706

Convention and Visitor's Bureau Fund

Senior Center Fund $

1,784 1,633 51,694 55,111

464,292 493 17,000 481,785

Hospital Sale Trust Fund $

8,059 61,930 69,989

Ambulatory Service Fund $

859,838 3,557 1 863,396

83,340 410,155 493,495

34,708 19,000 53,708

55,855 55,855

526,959 526,959

2,200 2,200

778,052 778,052

(49,143)

13,998

(744)

(45,174)

67,789

85,344

Total other financing sources and uses Net change in fund balances

Fund balances - ending

Asset Forfeiture Fund

(49,143)

13,998

(903)

624,201

(50,046)

638,199

(744) 257,786 $

257,042

116

(1,010,000)

(45,174)

(1,010,000) (942,211)

85,344

122,566

8,199,934

568,639

77,392

7,257,723

653,983 (Continued)

CITY OF EDMOND, OKLAHOMA OTHER SUPPLEMENTARY INFORMATION June 30, 2017

City of Edmond, Oklahoma Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds For the Year Ended June 30, 2017

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

Fund balances - beginning $

2,107,465 13,816 77,534 2,198,815

337 102,069 102,406

Capital Improvement Fund $

7,294 7,294

Roadway Improvement Fund $

2017 Capital Improvement Fund

1996 CIP Tax Fund

68 68

1,086 1,086

12 42,080 42,092

1,258,738 2,153,069 3,411,807

15,173 129,817 144,990

146 109,072 109,218

1 1

24 2,607 2,631

(19,474)

(1,212,992)

(42,584)

(101,924)

(1,545)

(100,000)

44,800 -

48,000 -

(19,474)

(100,000) (1,312,992)

44,800 2,216

48,000 (53,924)

98,876

2,203,788

73,303

Total other financing sources and uses Net change in fund balances

Fund balances - ending

22,064 554 22,618

Art in Public Places Fund

79,402

890,796

75,519

117

1,142,938

1,196,862

(1,545)

11,016 $

11,083

186,455 $

184,910

Total-Other Governmental Funds

2,309,292 (198) 2,309,094

7 13,307 13,314

612,689 34,708 778,052 1,329,766 2,879,107 5,634,322

2,295,780

989,398

268,210 -

361,010 (1,110,000)

268,210 2,563,990

(748,990) 240,408

4,416,757 464,292 444,352 883,686 40,488 61,930 312,215 6,623,720

2,563,990

13,542,523 $

13,782,931

CITY OF EDMOND, OKLAHOMA OTHER SUPPLEMENTARY INFORMATION June 30, 2017

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, 2017 SPECIAL REVENUE FUNDS CDBG ENTITLEMENT

Budget

ASSET FORFEITURE FUND Variance Positive (Negative)

Actual

Budget

Variance Positive (Negative)

Actual

Revenues: Taxes

Intergovernmental

631,274

444,352

(186,922)

Charges for services

Investment income

2,000

3,789

1,789

Miscellaneous

41,920

63,917

21,997 23,786

631,274

444,352

43,920

67,706

Personal services

Materials and supplies

Total Revenues

(186,922)

General Government:

Other services and charges

Capital outlay

Debt service

Personal services

Materials and supplies

32,450

31,340

1,110

Total General Government Public Safety:

Other services and charges

8,990

3,368

5,622

Capital outlay

19,000

60,440

53,708

6,732

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

43,965

43,595

370

750

288

462

602,222

449,612

152,610

646,937

493,495

153,442

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 Total Expenditures Revenues over (under) expenditures

646,937

493,495

153,442

60,440

53,708

6,732

(15,663)

(49,143)

(33,480)

(16,520)

13,998

30,518

Other financing sources (uses): Transfers from other funds

Transfers to other funds

(16,520)

13,998

30,518

624,201

Revenues and other sources over (under) expenditures and other uses Fund Balance-beginning of year Fund Balance -end of year

(15,663)

(49,143)

(903)

(16,566)

(50,046)

(33,480) $

(33,480)

607,681

638,199

30,518 (continued)

118

CITY OF EDMOND, OKLAHOMA OTHER SUPPLEMENTARY INFORMATION June 30, 2017

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, 2017 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

495,000

464,292

(30,708)

Charges for services

1,379

1,784

405

Investment income

1,750

1,633

(117)

500

493

54,732

51,694

(3,038)

19,000

17,000

(2,000)

57,861

55,111

(2,750)

514,500

481,785

(32,715)

Miscellaneous Total Revenues

(7)

General Government: Personal services

223,596

22,740

Materials and supplies

9,425

5,822

3,603

Other services and charges

300,726

246,336

297,541

3,185

Capital outlay

Debt service

556,487

526,959

29,528

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

8,162

4,209

3,953

58,250

51,646

6,604

66,412

55,855

10,557

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

66,412

55,855

10,557

556,487

526,959

29,528

Total Economic Development & Opp Street:

Total Expenditures Revenues over (under) expenditures

(8,551)

(744)

7,807

(41,987)

(45,174)

(3,187)

Other financing sources (uses): Transfers from other funds

Transfers to other funds

Revenues and other sources over (under) expenditures and other uses

(8,551) 257,786

Fund Balance-beginning of year Fund Balance -end of year

(744)

249,235

7,807

257,786 $

257,042

(41,987)

7,807

(45,174)

122,566 $

80,579

(3,187)

122,566 $

77,392

(3,187) (continued)

119

CITY OF EDMOND, OKLAHOMA OTHER SUPPLEMENTARY INFORMATION June 30, 2017

Budget

AMBULATORY SERVICE FUND

Variance Positive (Negative)

Actual

Budget

Variance Positive (Negative)

Actual

Revenues: Taxes

Intergovernmental

Charges for services

847,908

859,838

11,930

69,989

1,557

Investment income

69,989

2,000

3,557

7,181,060

(7,181,060)

7,181,060

69,989

(7,111,071)

849,908

863,396

13,488

Personal services

Materials and supplies

Miscellaneous Total Revenues General Government:

Other services and charges

2,200

Capital outlay

Debt service

2,200

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

10,000

7,448

2,552

Other services and charges

851,843

770,604

81,239

Total Parks and Recreation Health & Welfare:

Capital outlay Total Health & Welfare

861,843

778,052

83,791

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:

2,200

Total Expenditures Revenues over (under) expenditures

7,178,860

2,200 $

67,789

(7,111,071)

861,843 $

(11,935)

778,052 $

85,344

83,791 $

97,279

Other financing sources (uses): Transfers from other funds

Transfers to other funds Revenues and other sources over (under) expenditures and other uses

6,168,860

Fund Balance-beginning of year

8,199,934

Fund Balance -end of year

(1,010,000)

14,368,794

(1,010,000)

(942,211)

7,257,723

(11,935)

85,344

97,279

568,639

(7,111,071)

8,199,934 $

(7,111,071)

556,704

653,983

97,279 (continued)

120

CITY OF EDMOND, OKLAHOMA OTHER SUPPLEMENTARY INFORMATION June 30, 2017

Budget

PARK SALES TAX FUNDS Variance Positive (Negative)

Actual

Budget

Variance Positive (Negative)

Actual

Revenues: Taxes

Intergovernmental Charges for services Investment income Miscellaneous Total Revenues

2,132,392

2,107,465

(24,927)

18,514

22,064

3,550

1,000

554

10,000

13,816

3,816

50,000

77,534

27,534

19,514

22,618

3,104

2,192,392

2,198,815

6,423

(446)

General Government: Personal services

Materials and supplies

Capital outlay

49,366

42,080

7,286

Debt service

Other services and charges

49,441

42,092

7,349

Total General Government Public Safety: Personal services

Materials and supplies

Other services and charges

Capital outlay

Total Public Safety Parks and Recreation: Personal services

395,820

395,818

Material and supplies

117,570

117,564

Other services and charges

768,428

745,356

23,072

Capital outlay

2,556,645

2,153,069

403,576

3,838,463

3,411,807

426,656

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:

Materials and supplies

Other services and charges

Personal services

Capital outlay

Total Street Total Expenditures Revenues over (under) expenditures

49,441

42,092

7,349

3,838,463

3,411,807

426,656

(29,927)

(19,474)

10,453

(1,646,071)

(1,212,992)

433,079

Other financing sources (uses): Transfers from other funds

Transfers to other funds

(100,000)

10,453

(1,746,071)

(1,312,992)

433,079

2,203,788

Revenues and other sources over (under) expenditures and other uses Fund Balance-beginning of year Fund Balance -end of year

(29,927)

(19,474)

98,876

68,949

79,402

10,453

457,717

890,796

433,079 (continued)

121

CITY OF EDMOND, OKLAHOMA OTHER SUPPLEMENTARY INFORMATION June 30, 2017

Budget

CAPITAL IMPROVEMENT FUND Variance Positive (Negative)

Actual

Budget

Variance Positive (Negative)

Actual

Revenues: Taxes

Intergovernmental

Charges for services Investment income Miscellaneous Total Revenues

3,000

337

(2,663)

5,000

7,294

2,294

103,000

102,069

(931)

106,000

102,406

(3,594)

5,000

7,294

2,294

General Government: Personal services

Materials and supplies

Other services and charges

200

146

Capital outlay

464,105

67,409

396,696

Debt service Total General Government

464,305

67,555

396,750

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

21,000

15,173

5,827

270,744

129,817

140,927

291,769

144,990

146,779

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

121,451

41,663

79,788

Total Street

121,451

41,663

79,788

291,769

144,990

146,779

585,756

109,218

476,538

Total Expenditures Revenues over (under) expenditures

(185,769)

(42,584)

143,185

(580,756)

(101,924)

478,832

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

156,750

44,800

(29,019)

2,216

31,235

73,303

44,284

75,519

(111,950)

31,235

48,000

(532,756)

(53,924)

1,196,862 $

664,106

478,832

1,196,862 $

1,142,938

478,832 (continued)

122

CITY OF EDMOND, OKLAHOMA OTHER SUPPLEMENTARY INFORMATION June 30, 2017

Budget

1996 CIP TAX FUND

Variance Positive (Negative)

Actual

Budget

Variance Positive (Negative)

Actual

Revenues: Taxes

Intergovernmental

Charges for services

800

1,086

286

800

1,086

286

Investment income Miscellaneous Total Revenues General Government: Personal services

Materials and supplies

Other services and charges

Capital outlay

Debt service

Total General Government

Public Safety: Personal services

Materials and supplies

Other services and charges

Capital outlay

Personal services

Total Public Safety Parks and Recreation:

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

Total Health & Welfare Economic Development & Opp. Personal services

Materials and supplies

Other services and charges

Capital outlay

Personal services

Materials and supplies

6,851

Total Economic Development & Opp Street:

Other services and charges Capital outlay Total Street Total Expenditures Revenues over (under) expenditures

(1) 6,851

182,572

2,607

179,965

6,851

6,850

182,572

2,607

179,965

6,851

6,850

182,597

2,631

179,966

(6,826)

6,893

(181,797)

(1,545)

180,252

Other financing sources (uses): Transfers from other funds

Transfers to other funds

6,893

Revenues and other sources over (under) expenditures and other uses

(6,826) 11,016

Fund Balance-beginning of year Fund Balance -end of year

4,190

11,016 $

11,083

(181,797)

6,893

(1,545)

186,455 $

4,658

180,252

186,455 $

184,910

180,252 (continued)

123

CITY OF EDMOND, OKLAHOMA OTHER SUPPLEMENTARY INFORMATION June 30, 2017

Budget

Variance Positive (Negative)

Actual

Revenues: Taxes

2,309,292

Intergovernmental

Charges for services

Investment income

Miscellaneous

2,309,094

Total Revenues

(198)

General Government: Personal services

Materials and supplies

Other services and charges Capital outlay Debt service Total General Government

268,210

13,307

254,903

268,217

13,314

254,903

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 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

268,217

13,314

254,903

Total Expenditures Revenues over (under) expenditures

(268,217)

2,295,780

2,563,997

Other financing sources (uses): Transfers from other funds

268,210

Transfers to other funds

2,563,990

2,832,207

Revenues and other sources over (under) expenditures and other uses

(268,217) -

Fund Balance-beginning of year Fund Balance -end of year

(268,217)

2,563,990

2,832,207 (continued)

124

CITY OF EDMOND, OKLAHOMA OTHER SUPPLEMENTARY INFORMATION June 30, 2017

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, 2017

Capital Project Funds 2000 Capital Improvement Tax Fund

Budget

2012 Public Safety Center Tax Fund Variance Positive Budget Actual (Negative)

Variance Positive (Negative)

Actual

REVENUES Taxes

$ 12,724,946

Intergovernmental

12,644,793

Licenses and permits Investment income Miscellaneous

225,000

319,944

60,000

434,928

Contributed capital

Investment income

‐ ‐ 13,009,946

‐ ‐ 13,399,665

Miscellaneous Total revenues

$ (80,153) ‐ ‐ 94,944 374,928 ‐ ‐ ‐ 389,719

7,473,085

6,120,570

7,488,085

‐ ‐ 6,169,374

$ (1,352,515) ‐ ‐ 33,804 ‐ ‐ ‐ ‐ (1,318,711)

15,000

48,804

EXPENDITURES General Government: 200

200

Other services and charges

181,284

128,338

52,946

Capital outlay

700,000

191,985

508,015

8,440,848

8,472,379

(31,531)

9,322,332

8,792,702

529,630

Materials and supplies

100,000

1,187

Other services and charges

102,803

146,925

Capital outlay

3,274,642

720,892

Debt service

300,000

61,930

238,070

3,777,445

930,934

2,846,511

750,000

‐ ‐

Materials and supplies

Debt service Total General Government

‐

Public Safety:

Total Public Safety

‐

98,813 (44,122) 2,553,750

Parks and Recreation: Capital outlay Total Parks and Recreation

3,363,451

2,536,226

3,363,451

2,536,226

6,164,650

213,540

6,164,650

213,540

827,225 827,225

Economic Development & Opp: Capital outlay Total Economic Development & Opp

5,951,110 5,951,110

‐ ‐

Community Development: 400,000

10,064

389,936 389,936

400,000

‐ ‐

Capital outlay

10,878,869

9,878,790

1,000,079

‐

Total Street

10,878,869

9,878,790

1,000,079

‐

30,129,302

21,431,322

8,697,980

4,527,445

1,680,934

2,846,511

9,087,699

2,960,640

4,488,440

1,527,800

Capital outlay Total Community Development Street:

Total Expenditures

(17,119,356)

Revenues over (under) expenditures

(8,031,657)

Other financing sources (uses): Transfers to other funds Total of other financing resources

Revenues and other sources over (under) expenditures and other uses

(25,500)

(7,280,196)

(268,210)

7,011,986

(25,500)

(7,280,196)

(268,210)

7,011,986

(17,119,356)

(8,057,157)

32,095,561

Fund Balance-beginning of year Fund Balance -end of year

14,976,205

9,062,199

32,095,561 $

24,038,404

125

9,062,199

(4,319,556)

4,220,230

(1,998,210)

(6,317,766)

2,222,020

8,539,786 $

8,539,786

CITY OF EDMOND, OKLAHOMA OTHER SUPPLEMENTARY INFORMATION June 30, 2017

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, 2017

City of Edmond, Oklahoma Combining Statement of Net Position Nonmajor Enterprise Funds June 30, 2017

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 Total deferred outflows of resources LIABILITIES Current liabilities: Accounts payable Accrued wages payable Accrued interest payable Due to other funds Compensated absences Meter deposit liability Revenue bonds payable Total current liabilities Non-current liabilities: Compensated absences Meter deposit liability Net OPEB obligation Net pension liability Revenue bonds payable, net Total non-current liabilities Total liabilities DEFERRED INFLOW OF RESOURCES Deferred amounts related to pensions NET POSITION Invested in capital assets, net of related debt Restricted for debt service Restricted for scholarships Unrestricted (deficit) Total net position

1,267,202 5,243,087

PWA Arcadia Lake Fund

34,345 137,467

PWA Drainage Fund

Kickingbird Golf Course Fund

1,429,912 6,145,319

75,132 322,631

Yourgovshop Fund

CityLink

47,968 207,921

Total

155,243 672,911

3,009,802 12,729,336

249,696

752,172 1,000

52,743

234,683 -

986,855 303,439

10,882 955,837 4,500 25,209 7,756,413

275 925,259

12,264 191,417 872,562 8,704,217

639 2,114 70,566 705,765

411 40,534 296,834

1,330 166,547 996,031

25,801 1,147,254 168,661 45,034 897,771 70,566 19,384,519

1,776

99,473 162,905

31,877 52,204

131,350 216,885

367,123 368,899 8,125,312

495,278 3,470,005 4,227,661 5,152,920

626,666 7,242,678 7,869,344 16,573,561

541,171 1,100,458 1,725,710 2,431,475

296,834

996,031

1,663,115 12,180,264 14,191,614 33,576,133

4,396 412,542 416,938

52,855 142,860 195,715

125,250 125,250

16,938 255,823 272,761

10,128 10,128

10,855 10,855

74,189 957,458 1,031,647

363,795 51,264 5,113 64,938 9,718 24,970 46,924 566,722

3,513 29,614 20,687 3,802 1,000 346,396 405,012

136,134 15,097 385,305 2,929 5,275 544,740

65,396 47,816 6,629 6,540 111,005 237,386

1,176 374 1,550

104,129 1,206 173 105,508

672,967 146,173 32,429 450,243 23,536 31,245 504,325 1,860,918

87,459 224,726 121,618 726,408 225,401 1,385,612 1,952,334

34,218 29,438 240,001 1,668,799 1,972,456 2,377,468

26,364 47,468 24,537 221,222 319,591 864,331

58,855 70,812 430,654 534,777 1,095,098 1,332,484

3,365 2,372 17,935 23,672 25,222

1,559 1,493 18,135 21,187 126,695

211,820 272,194 250,270 1,654,355 2,428,977 4,817,616 6,678,534

11,432

1,820

2,117

2,884

5,163

23,454

7,869,344 7,963,019 15,832,363

1,012,785 312,135 1,301 42,647 1,368,868

281,702 281,702

875,028 875,028

10,984,266 1,305,998 1,301 15,614,227 27,905,792

99,194 6,479,290 6,578,484

2,002,943 993,863 (27,459) 2,969,347

127

CITY OF EDMOND, OKLAHOMA OTHER SUPPLEMENTARY INFORMATION June 30, 2017

City of Edmond, Oklahoma Combining Statement of Revenues, Expenses and Changes in Fund Net Position Nonmajor Enterprise Funds For the Year Ended June 30, 2017 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)

9,199,752 9,199,752

PWA Arcadia Lake Fund $

1,445,832 343,393 5,843,505 20,865 7,653,595 1,546,157

NON-OPERATING REVENUES (EXPENSES) Interest and investment revenue Gain on capital asset disposal Interest expense Miscellaneous expenses Total non-operating revenue (expenses)

1,062,338 45,863 1,108,201

PWA Drainage Fund

Kickingbird Golf Course Fund

1,793,692 1,793,692

639,698 98,116 448,882 205,485 1,392,181 (283,980)

38,948 (9,156) 29,792

410,139 5,043 552,613 66,375 1,034,170 759,522

2,141 (61,486) (59,345)

44,568 (2,379) 42,189

1,701,333 287,079 1,988,412

Yourgovshop Fund $

91,286 91,286

1,112,258 484,252 430,573 160,061 2,187,144 (198,732)

33,679 5 17,213 50,897 40,389

3,085 5,160 (19,702) (11,457)

1,455 1,455

CityLink $

282,098 743,700 1,025,798

Total $

33,126 84,693 1,574,731 1,692,550 (666,752)

14,039,213 743,700 424,228 15,207,141

3,674,732 1,015,502 8,867,517 452,786 14,010,537 1,196,604

2,530 2,530

92,727 5,160 (90,344) (2,379) 5,164

Income (loss) before transfers

1,575,949

(343,325)

801,711

(210,189)

41,844

(664,222)

1,201,768

Transfers in Transfers out Change in net position

(353,424) 1,222,525

485,396 142,071

801,711

(210,189)

41,844

900,000 235,778

1,385,396 (353,424) 2,233,740

Total net position - beginning

5,355,959

2,827,276

15,030,652

239,858

639,250

Total net position - ending

6,578,484

2,969,347

15,832,363

128

1,579,057 $

1,368,868

281,702

875,028

25,672,052 $

27,905,792

CITY OF EDMOND, OKLAHOMA OTHER SUPPLEMENTARY INFORMATION June 30, 2017

City of Edmond, Oklahoma Combining Statement of Cash Flows Nonmajor Enterprise Funds For the Year Ended June 30, 2017

PWA Sanitation Fund CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers Payments to suppliers Payments to employees 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 used 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 in cash and cash equivalents Balances-beginning of year Balances-end of year

9,193,312 (6,188,942) (1,357,593) (25,209) 48,022 1,669,590

PWA Arcadia Lake Fund $

1,108,201 (550,811) (609,721) (52,331)

(353,424) (353,424)

485,396 485,396

(30,555) (11,839) (42,394)

(609,632) 53,128 (556,504)

PWA Drainage Fund

Kickingbird Golf Course Fund

1,821,788 (422,813) (391,045) (695,479) 385,305 697,756

1,988,412 (946,713) (1,053,971) (12,272)

Yourgovshop Fund $

CityLink

79,907 (17,218) (31,514) 31,175

Total

1,146,905 (1,571,501) (31,547) (456,143)

15,338,525 (9,697,998) (3,475,391) (720,688) 433,327 1,877,775

900,000 900,000

1,385,396 (353,424) 1,031,972

(399,220) (86,032) (485,252)

(505,758) (505,758)

(58,923) (127,933) (27,569) (214,425)

(564,681) (557,708) (125,440) (1,247,829)

79,639 2,607 82,246

430,079 62,078 492,157

240,650 4,282 244,932

(7,220) 1,484 (5,736)

(356,625) 4,893 (351,732)

717,268

30,059

684,155

18,235

25,439

92,125

549,934

855,931

745,757

323,457

22,529

63,118

(973,477) 750,368 128,472 (94,637) 1,567,281 2,560,726

1,267,202

885,990

1,429,912

341,692

47,968

155,243

4,128,007

1,267,202 1,267,202

34,345 752,172 99,473 885,990

1,429,912 1,429,912

75,132 234,683 31,877 341,692

47,968 47,968

155,243 155,243

3,009,802 986,855 131,350 4,128,007

(283,980)

759,522

(198,732)

40,389

(666,752)

1,196,604

Reconciliation of Operating Income (Loss) to Net Cash Provided by (used in) Operating Activities: Operating income (loss) $ 1,546,157 Adjustments to reconcile operating income (loss) to net cash provided by (used in) operating activities: Depreciation expense 20,865 Miscellaneous non-operating revenue (expense) Change in assets and liabilities: Receivables, net (6,440) Inventories Due from other funds (25,209) Deferred outflows related to pension (157,677) Accounts and other payables 2,660 Due to other funds 48,022 Unearned revenue OPEB obligation 11,756 Pension liability 218,701 10,554 Deferred inflows related to pension Accrued compensated absences 201 $ 1,669,590 Net cash provided by (used in) operating activities Non-cash Activities: Change in fair value of investments Total Non-cash Activities

$ $

(18,500) (18,500)

205,485 -

(67,628) (2,075) 3,093 90,953 1,820 1 (52,331)

$ $

(467) (467)

129

66,375 (2,379)

160,061 -

(11,379) (4,032) 105 180 5,794 38 80 31,175

121,107 (2,574) 88,083 160 1,639 1,879 315 (456,143)

$ $

(701) (701)

$ $

(2,266) (2,266)

30,475 (695,479) (48,969) 136,555 385,305 2,488 69,266 1,664 (7,067) 697,756

4,548 (118,336) (33,926) 7,460 160,580 2,884 3,189 (12,272)

$ $

(20,876) (20,876)

$ $

(1,086) (1,086)

452,786 (2,379) 133,763 4,548 (720,688) (399,216) 191,402 433,327 25,137 546,933 18,839 (3,281) 1,877,775

$ $

(43,896) (43,896)

CITY OF EDMOND, OKLAHOMA OTHER SUPPLEMENTARY INFORMATION June 30, 2017

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, 2017

City of Edmond, Oklahoma Combining Statement of Net Position Internal Service Funds June 30, 2017

Group Insurance Fund ASSETS Current assets: Cash and cash equivalents Investments Receivables: Accrued interest Due from other governments Other receivables Inventories Total current assets Non-current assets: Capital Assets: Nondepreciable Depreciable, net of accumulated depreciation Total non-current assets Total assets

DEFERRED OUTFLOWS OF RESOURCES Deferred amounts related to pensions LIABILITIES Current Liabilities: Accounts payable Salaries payable Compensated absences Claims and judgments Total current liabilities Non-current liabilities: Compensated absences Net OPEB obligation Net pension liability Claims and judgments Total non-current liabilities Total liabilities DEFERRED INFLOW OF RESOURCES Deferred amounts related to pensions NET POSITION Invested in capital assets, net of related debt Unrestricted (deficit) Total Net Position

855,308 3,707,398

Vehicle Maintenance Fund

110,658 479,594

Fleet Management Fund

Liability/Tort Claim Fund

1,052,972 3,913,999

1,813,829 8,200,271

Field Services Fund

Administrative Support Services Fund

465,518 1,671,059

741,917 3,206,360

Total

5,040,202 21,178,681

7,335 44,529 4,614,570

949 142,021 114,664 847,886

7,745 4,974,716

16,226 10,030,326

3,306 189,440 882,242 3,211,565

6,345 65,816 4,020,438

41,906 189,440 186,550 1,062,722 27,699,501

4,614,570

847,886

4,974,716

14,264,513 14,264,513 24,294,839

3,211,565

809,418 2,810,650 3,620,068 7,640,506

809,418 17,075,163 17,884,581 45,584,082

270,919

74,812

19,993

1,359,629

3,746,704

5,472,057

206,186 825,151 1,031,337

172,833 34,568 5,450 212,851

157,305 10,049 1,736 972,000 1,141,090

19,593 2,546 252 22,391

127,626 180,156 26,612 334,394

394,886 488,052 68,178 951,116

1,078,429 715,371 102,228 1,797,151 3,693,179

275,050 275,050 1,306,387

48,936 22,838 467,652 539,426 752,277

15,628 5,171 132,345 1,845,000 1,998,144 3,139,234

2,243 1,190 35,367 38,800 61,191

239,509 134,228 2,404,776 2,778,513 3,112,907

613,720 300,469 6,620,088 7,534,277 8,485,393

920,036 463,896 9,660,228 2,120,050 13,164,210 16,857,389

5,125

5,056

144

12,766

39,494

62,585

3,308,183 3,308,183

361,403 361,403

1,905,238 1,905,238

14,316,154 9,937,343 24,253,497

1,445,521 1,445,521

131

3,620,068 (757,745) 2,862,323

17,936,222 16,199,943 34,136,165

CITY OF EDMOND, OKLAHOMA OTHER SUPPLEMENTARY INFORMATION June 30, 2017

City of Edmond, Oklahoma Combining Statement of Revenues, Expenses and Changes in Fund Net Position Internal Service Funds For the Year Ended June 30, 2017

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)

814 1,552,492 671,947 10,106,233 12,331,486 (2,758,292)

NON-OPERATING REVENUES (EXPENSES) Interest and investment revenue Gain/(loss) on sale of capital assets Miscellaneous revenue Total non-operating revenue (expenses)

Total net position - beginning $

2,840,063 2,840,063

(159,263)

5,996,505

520,666 $

361,403

2,229,803 190,943 2,420,746

Fleet Management Fund $

256,308 8,129 203,846 723,202 957,390 2,148,875 271,871

3,601 1,843 5,444

(2,688,322)

3,308,183

Liability/Tort Claim Fund

929,691 1,504,915 570,164 3,004,770 (164,707)

29,751 40,219 69,970

Change in net position

Total net position - ending

9,573,194 9,573,194

Vehicle Maintenance Fund

1,685,099

1,608,831

22,568,398

132

24,253,497

9,941,909 5,405 9,947,314

4,873,304 1,078,021 4,503,471 10,454,796 (507,482)

58,695 (67,497) 24,350 15,548

296,407

1,905,238

Administrative Support Services Fund

68,139 7,241 134,818 1,943,466 2,153,664 1,669,551

24,536 24,536

3,823,215 3,823,215

Field Services Fund

1,942,291 $

46,930,214 196,348 47,126,562

19,455,510 3,204,500 12,274,915 1,395,149 11,063,623 2,415,882 49,809,579 (2,683,017)

27,236 123,190 150,426

(496,770)

1,445,521

13,328,068 605,380 5,310,124 472,416 19,715,988 (1,193,958)

10,712 10,712

18,522,030 18,522,030

Total

154,531 (67,497) 189,602 276,636

(1,043,532)

(2,406,381)

3,905,855

36,542,546

2,862,323

34,136,165

CITY OF EDMOND, OKLAHOMA OTHER SUPPLEMENTARY INFORMATION June 30, 2017

City of Edmond, Oklahoma Combining Statement of Cash Flows Internal Service Funds For the Year Ended June 30, 2017

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

9,590,139 (2,306,728) (9,314,218) (2,030,807)

Vehicle Maintenance Fund $

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

2,905,205 (1,987,053) (864,803) 53,349

2,420,746 (820,991) (755,390) (236,366) 607,999

2,181,421 42,800 2,224,221

Fleet Management Fund

Liability/Tort Claim Fund

4,006,416 (168,164) (62,974) 3,775,278

Field Services Fund

Administrative Support Services Fund

9,969,101 (5,762,736) (4,538,651) (332,286)

18,657,220 (5,662,322) (12,522,986) 18,112 490,024

Total $

47,548,827 (16,707,994) (18,744,804) (9,550,584) 18,112 2,563,557

(2,467,603) 64,291 (2,403,312)

(363,802) (363,802)

(2,831,405) 64,291 (2,767,114)

(1,413) 2,909 1,496

(162,310) 35,013 (127,297)

(504,869) 80,514 (424,355)

533,874 15,993 549,867

194,577 36,256 230,833

(668,592) 2,909,872 213,485 2,454,765

193,414

54,845

480,702

947,611

217,581

357,055

2,251,208

661,894

55,813

572,270

866,218

247,937

384,862

2,788,994

Balances-end of year

855,308

110,658

1,052,972

1,813,829

465,518

741,917

5,040,202

Reconciliation to Combining Statement of Net Position: Cash, including time deposits Total cash and cash equivalents, end of year

$ $

855,308 855,308

$ $

110,658 110,658

$ $

1,052,972 1,052,972

$ $

1,813,829 1,813,829

$ $

465,518 465,518

$ $

741,917 741,917

$ $

5,040,202 5,040,202

(164,707)

271,871

1,669,551

(507,482)

(2,683,017)

Reconciliation of Operating Income (Loss) to Net Cash Provided by (used in) Operating Activities: Operating income (loss) $ (2,758,292) Adjustments to reconcile operating income (loss) to net cash provided by (used in) operating activities: Depreciation expense Miscellaneous non-operating revenue 40,219 Change in assets and liabilities: Receivables, net Other receivable (23,274) Inventories Due from other governments Due from other funds Deferred outflows related to pension Accounts and other payables (81,475) Claims liability 792,015 Net OPEB obligation Net Pension liability Deferred inflows related to pension Accrued compensated absences $ (2,030,807) Net cash provided by (used in) operating activities Non-cash Activities: Change in fair value of investments Total Non-cash Activities

$ $

(12,487) (12,487)

1,843

63,299 (43,967) (119,037) 138,394 7,355 165,094 1,085 3,990 53,349

$ $

(1,615) (1,615)

1,943,466 24,350

(29,580) 117,477 202,000 1,446 42,241 (574) 3,118 607,999

158,851 (8,039) (25,915) 366 11,656 144 848 3,775,278

$ $

(13,182) (13,182)

$ $

(27,619) (27,619)

133

21,787 (116,487) (536,895) (37,048) 42,031 765,841 11,626 24,341 (332,286)

$ $

(5,628) (5,628)

(1,193,958) 472,416 123,190

2,415,882 189,602

6,000 (3,804) 6,000 18,112 (1,472,893) 316,476 94,183 2,094,995 39,494 (10,187) 490,024

226,663 (164,258) 6,000 18,112 (2,166,444) 427,909 994,015 145,381 3,079,827 51,775 22,110 2,563,557

$ $

(10,799) (10,799)

$ $

(71,330) (71,330)

CITY OF EDMOND, OKLAHOMA OTHER SUPPLEMENTARY INFORMATION June 30, 2017

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, 2017

City of Edmond, Oklahoma Combining Statement of Fiduciary Assets and Liabilities Agency Funds June 30, 2017

Sidewalk and Driveway Escrow Fund ASSETS Cash and cash equivalents Other receivables

C.L.E.E.T. PENALTY ASSESSMENT FUND

TOTALS

568,922 26,656

17,532 -

586,454 26,656

Total assets

595,578

17,532

613,110

LIABILITIES Accounts payable Refundable deposits

595,578

17,156 376

17,156 595,954

595,578

17,532

613,110

Total liabilities

City of Edmond, Oklahoma Combining Statement of Changes in Assets and Liabilities Agency Funds For the fiscal year ended June 30, 2017

BALANCE JUNE 30, 2016 SIDEWALK AND DRIVEWAY ESCROW Assets: Cash and cash equivalents Other receivables

ADDITIONS

DEDUCTIONS

BALANCE JUNE 30, 2017

613,745 -

389,985 26,656

434,808 -

568,922 26,656

613,745

416,641

434,808

595,578

LIABILITIES Refundable deposits

613,745

371,818

389,985

595,578

Total liabilities

613,745

371,818

389,985

595,578

40,117

598,621

621,206

17,532

40,117

598,621

621,206

17,532

18,534 21,583

321,283 277,338

322,661 298,545

17,156 376

40,117

598,621

621,206

17,532

653,862 -

988,606 26,656

1,056,014 -

586,454 26,656

653,862

1,015,262

1,056,014

613,110

18,534 21,583 613,745

321,283 277,338 371,818

322,661 298,545 389,985

17,156 376 595,578

653,862

970,439

1,011,191

613,110

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, 2017

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, 2017

CITY OF EDMOND, OKLAHOMA SCHEDULE OF REVENUE BOND/NOTE DEBT SERVICE COVERAGE For the fiscal year ended June 30, 2017 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

148,256,574 875,268 156,627

Utility Revenue Bonds Series 2014, 2015 and 2016

148,256,574 875,268 156,627

149,288,469

9,499,282 2,301,120 88,286,718 -

9,499,282 2,301,120 88,286,718 8,696,602

9,499,282 2,301,120 88,286,718 -

100,087,120

108,783,722

100,087,120

Total Gross Revenues of the System in Excess of Total Operation and Maintenance Expenses

49,201,349

40,504,747

49,201,349

Add: Pledged sales tax revenue

33,565,653

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

82,767,002

53,091,867

61,788,469

Maximum Debt Service Requirements on Liabilities

6,954,274

7,455,266

8,079,527

Computed Coverage Coverage Requirement

1190%

712%

765%

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, 2017

CITY OF EDMOND, OKLAHOMA SCHEDULE OF RESERVE ACCOUNT BALANCES JUNE 30, 2017

RESERVE BALANCE JUNE 30, 2017

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

1,390,000 1,325,500 1,434,939 2,496,505 2,245,000 2,269,935 2,360,100

138

1,445,303 1,379,283 1,438,164 2,557,461 2,327,290 2,303,585 2,362,113

EXCESS BALANCE OVER REQUIRED RESERVES

55,303 53,783 3,225 60,956 82,290 33,650 2,013

CITY OF EDMOND, OKLAHOMA OTHER SUPPLEMENTARY INFORMATION June 30, 2017

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, 2017

CITY OF EDMOND, OKLAHOMA BALANCE SHEET DISCRETELY PRESENTED COMPONENT UNIT June 30, 2017 HISTORIC PRESERVATION TRUST ASSETS Cash and cash equivalents

89,184

Unassigned

89,184

Total liabilities and fund balances

89,184

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

166,726 $

140

255,910

CITY OF EDMOND, OKLAHOMA OTHER SUPPLEMENTARY INFORMATION June 30, 2017

CITY OF EDMOND, OKLAHOMA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE DISCRETELY PRESENTED COMPONENT UNIT FOR THE FISCAL YEAR ENDED June 30, 2017 HISTORIC PRESERVATION TRUST Revenues: Investment income

Miscellaneous

122 1,128

Total Revenues

1,250

Expenditures: Current: Culture, parks and recreation Total Expenditures

24,076 24,076

Revenues over (under) expenditures

(22,826)

Other financing sources: Payment from the City of Edmond

20,000

Net change in fund balance Fund balances - beginning Fund balances - ending

(2,826) 92,010 89,184

(2,826)

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

(28,504)

Change in net position - component unit

141

(31,330)

CITY OF EDMOND, OKLAHOMA OTHER SUPPLEMENTARY INFORMATION June 30, 2017

THIS PAGE INTENTIONALLY LEFT BLANK

142

STATISTICAL SECTION

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

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

$ 135,777,034

$ 170,168,033

$ 186,474,825

$ 152,755,649

$ 165,301,769

200,795,158

$ 250,995,878

63,676,420

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

22,118,829

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)

$ 221,572,283

$ 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

$ 119,144,031

$ 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

10,563,415

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

55,106,883

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

$ 184,814,329

$ 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

$ 254,921,065

$ 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

74,239,835

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

77,225,712

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

$ 406,386,612

$ 443,022,076

$ 459,761,469

$ 438,476,679

$ 463,247,233

539,200,463

$ 544,543,865

600,605,187

$ 655,271,395

Governmental activities Invested in capital assets, net of related debt Restricted Unrestricted Total governmental activities net assets

179,081,790

255,086,502

$ 297,762,184

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

503,210,169

CITY OF EDMOND, OKLAHOMA CHANGES IN NET POSITION Last Ten Fiscal Years TABLE 2

2008 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

3,478,447 36,253,944 7,758,419 4,875,902 1,429,278 3,575,609 57,371,599

2009

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

55,694,109 14,909,423 5,554,642 6,100,704 1,194,252 814,071 1,786,557 63,194 417,459 86,534,411 $ 143,906,010

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

7,308,113 1,184,312 7,650 538,322 4,902,301 5,968,765 19,909,463

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

(Continued)

145

CITY OF EDMOND, OKLAHOMA TABLE 2 (Continued)

2008 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

2009

2010

2011

2012

2013

2014

2015

2016

2017

57,936,121 15,876,990 6,887,906 6,221,070 640,316 1,571,298 1,731,594 70,085 107,870 5,360,805 96,404,055 $ 116,313,518

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

$ (37,462,136) 9,869,644 $ (27,592,492)

$ (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)

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

$ 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

659,037 171,402 (501,074) 329,365 73,578,047

917,706 669,672 1,587,378 $ 74,455,747

929,047 (3,311,003) (2,381,956) $ 74,576,336

24,951,181 30,844,894 55,796,075

$ 15,861,001 40,200,323 $ 56,061,324

$ 17,904,180 36,762,028 $ 54,666,208

Net (Expense)/Revenue Government activities Business-type activities Total primary government net expense

General Revenues and Other Changes in Net Assets Government activities: Taxes: Sales and use taxes - General government $ 27,558,790 Sales and use taxes - Public safety 4,742,710 Sales and use taxes - Park and recreation 1,580,904 Sales and use taxes - Capital improvements 9,485,420 Ad valorem property taxes 91,149 Franchise and public service taxes 1,866,394 Hotel/motel taxes 417,905 761,720 Intergovernmental revenue not restricted to spec Investment income 4,229,091 Miscellaneous 284,237 Gain (loss) on sale of capital assets Transfers-Internal activity 1,604,942 Total governmental activities 52,623,262 Business-type activities: Investment earnings 2,829,720 Miscellaneous 180,998 Special item - gain on asset impairment 294,193 Transfers - Internal activity (1,604,942) Total business-type activities 1,699,969 Total primary government $ 54,323,231 Change in Net Assets Government activities Business-type activities Total primary government

$ $

15,161,126 11,569,613 26,730,739

$ $

29,572,916 5,014,947 1,671,649 10,029,894 1,961,519 364,232 694,962 2,515,207 216,763 (1,696,494) 1,733,927 52,079,522 1,925,301 158,658 (64,102) (1,733,927) 285,930 52,365,452

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

* 2014 Transportation operations was established as a BTA instead of Governmental Activity

146

$ $

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

$ $

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

$ $

CITY OF EDMOND, OKLAHOMA FUND BALANCES, GOVERNMENTAL FUNDS Last Ten Fiscal Years TABLE 3

2008 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

3,771,989 2,841,745 6,613,734

7,229,922 -

2009

3,573,228 2,005,534 5,578,762

7,329,922 -

24,031,157 35,556,974 5,184,515 5,453 2,606,709 74,614,730

22,314,064 35,121,329 4,202,565 1,619,906 $ 70,587,786

88,336,986

$ 81,228,464

2010

1,770,558 4,985,485 6,756,043

7,314,772 -

32,566,108 9,733,245 19,253,710 68,867,835

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

NOTE: Beginning in FY 2011 the City implemented GASB Statement 54, changing the categories of Fund Balance

147

2013

2014

2,644,344 1,822,138 6,770,667 11,237,149

74,827,114 7,352 3,593,792 -

2015

2016

3,197,753 578,249 1,434,645 7,375,504 12,586,151

2,962,254 1,947,137 6,056,058 $ 10,965,449

71,339,026 11,733 4,706,939 -

$ 66,798,102

$ 77,763,551

78,428,258

76,057,698

89,665,407

88,643,849

61,708,614 11,530 5,077,958 -

2017

2,889,481 1,120,870 3,142,639 7,152,990

59,241,768 8,902 5,867,853 (1,999,113)

2,660,047 1,462,779 5,419,733 9,542,559

53,097,413 3,444 6,909,158 (50,046)

63,119,410

59,959,969

70,272,400

69,502,528

CITY OF EDMOND, OKLAHOMA CHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS Last Ten Fiscal Years TABLE 4

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

43,367,824 1,865,472 93,730 417,905 8,251,646 5,121,590 2,424,600 1,418,060 4,304,185 401,775 67,666,787

$ 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

5,927,876 35,466,386 4,421,445 3,837,910 1,369,320 18,500,852

3,411,203 3,632,019 76,567,011

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

(8,900,224)

$ (12,872,461)

(6,821,479)

(4,080,875)

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)

$ 52,673,556 (53,343,228) $ (669,672)

54,816,508 (53,024,807) 1,791,701

Net change in fund balances

(7,108,523)

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

67,265,649 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

$ 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

6,812,288 45,697,743 1,255,580 5,235,819 4,843,989 33,392,516

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

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 Excess of revenues over(under) expenditures

5,380,418 35,183,104 3,333,924 3,777,614 1,549,305 18,312,319

(7,133,881)

4,839,694 36,047,474 3,098,018 3,684,873 2,313,124 12,507,394

(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

(4,056,231)

5,937,535 49,182,140 6,354,224 4,696,132 1,384,677 576,728 19,924,453

6,111,202 49,487,104 5,377,604 5,047,946 1,426,948 19,842,711

Other financing sources(uses)

Debt service as a percentage of noncapital expenditures

13.3%

$ 60,118,792 (58,046,824) $ 2,071,968

$ 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)

1,325,224 26,965,000 $ 18,666,764

1,221,619 12,644,906 $ 3,034,673

$ 14,769,464

(1,021,558)

$ (10,880,298)

13.8%

9.9%

(5,061,913)

12.6%

(542,672)

13.4%

566,351

12.0%

148

(1,294,086)

11.2%

8.9%

75,715,179 (75,214,105) (21,731,628) 2,467,717 20,755,000 1,992,163

(7,491,151)

11.1%

54,126,365 (50,815,362) $ 3,311,003 (769,872)

11.2%

CITY OF EDMOND, OKLAHOMA GOVERNMENTAL ACTIVITIES TAX REVENUES BY SOURCE Last Ten Fiscal Years TABLE 5

Ad Valorem Tax

Fiscal Year 2008

Sales Tax

Use Tax $

2,264,335

Franchise Tax $

1,836,994

Hotel/ Motel Tax

Liquor Tax

92,692

$ 41,103,489

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

149

29,400

417,905

Totals $

45,744,815

CITY OF EDMOND, OKLAHOMA ELECTRICITY REVENUE BY CUSTOMER TYPE LAST TEN FISCAL YEARS TABLE 6

2009

2010

2011

2012

34,186,769 17,187,660 974,507 5,288,332

$ 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

57,637,268

$ 63,703,215

$ 61,594,388

$ 63,667,238

$ 71,938,538

2008 Residential $ Commercial Large Commercial & Industrial Other

Totals

Source: City of Edmond Utility Customer Service Department

150

2013

2014

2015

2016

2017

42,678,657 19,814,031 855,677 5,806,358

$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

69,154,723

$ 74,756,122

$ 78,135,179

$ 89,935,863

$ 94,970,481

CITY OF EDMOND, OKLAHOMA TOP TEN ELECTRIC CUSTOMERS LAST TEN YEARS TABLE 7

2008

2010

2011

Value

% of Total

Value

% of Total

Value

% of Total

2017

Value

% of Total

Rank

% of Total

2016

Rank

Value

2015

Rank

% of Total

Rank

Value

2014

2013

Rank

% of Total

2012

Rank

Value

Rank

% of Total

Value

Rank

% of Total

Value

Rank

Taxpayer

2009

Value

% of Total

Edmond Public Schools

1,606,329

2.8%

2,127,093

3.3%

2,083,285

3.4%

1,693,712

2.7%

1,957,444

2.7% 2

1,847,810

2.7%

2,161,015

2.9%

$ 2,437,296

3.1%

2,577,853

2.9%

2,490,373

2.6%

City of Edmond

1,956,377

3.4%

2,400,975

3.8%

2,185,377

3.5%

2,049,567

3.2%

2,076,083

2.9% 1

1,993,673

2.9%

2,307,101

3.1%

$ 2,265,985

2.9%

2,480,011

2.8%

2,265,360

2.4%

University of Central Oklahoma

1,539,092

2.7%

2,194,299

3.4%

2,072,185

1,754,771

2.8%

1,789,302

2.5% 3

1,719,861

2.5%

1,078,747

1.4%

$ 1,825,544

2.3%

1,851,218

2.1%

1,377,662

1.5%

Walmart

737,862

1.3%

971,947

1.5%

827,417

3.4% 0.0% 1.3%

759,208

1.2%

851,814

1.2% 4

779,495

1.1%

806,165

1.1%

$ 1,046,622

1.3%

811,535

0.9%

822,461

0.9%

0.0%

833,125

1.1%

674,400

0.7%

700,892

0.7%

334,632

0.6%

394,957

0.6%

337,554

0.5%

306,271

363,000

0.5%

491,979

0.6%

393,246

0.4%

396,914

0.4%

0.0%

448,296

0.6%

379,453

0.4%

388,111

0.4%

355,156

0.4%

362,301

0.4%

0.0%

358,587

0.4%

310,761

0.3% 10

355,621

0.4%

0.0% 10

291,105

0.3%

0.0%

$ $ $ $ $ $ 10,124,738

0.0% 0.0% 0.0% 0.0% 0.0% 11.3%

$ $ $ $ $ $

9,518,282

0.0% 0.0% 0.0% 0.0% 0.0% 10.0%

Mercy Health Homeland Stores

Edmond YMCA

0.0%

281,059

0.4%

0.0%

0.4% 9

292,138

0.4%

0.0%

Lowe's

206,106

0.4%

337,108

0.5%

406,365

0.7%

330,251

0.5%

363,185

0.5% 8

342,856

0.5%

373,712

0.5%

452,313

0.6%

Crest Foods

281,402

0.5%

442,393

0.7%

411,060

0.7%

339,516

0.5%

375,621

0.5% 7

359,406

0.5%

389,113

0.5%

447,974

0.6%

0.0%

349,842

0.5% 5

479,408

0.7%

511,748

0.7%

494,264

0.6%

334,020

0.0% 0.0% 0.6%

426,035

0.7%

395,136

0.6%

315,069

0.5%

373,020

0.5% 6

360,258

0.5%

438,975

0.6%

237,446 257,523 7,490,789

0.0% 0.0% 0.4% 0.4% 0.0% 13.0%

$ $ $ $ $ $

299,360 315,726 7,467,074

0.0% 0.0% 0.5% 0.0% 0.5% 11.7%

$ $ 10 $ $ $ $

272,404 271,484 7,178,982

0.4% 0.0% 0.4% 0.0% 0.0% 11.7%

10 9

$ $ $ $ $ $

255,308 255,308 6,340,056

0.4% 0.4% 0.0% 0.0% 0.0% 10.0%

$ $ $ $ $ $

278,929 6,764,067

0.4% 10 0.0% 0.0% 0.0% 0.0% 9.4%

$ $ $ $ $ $

276,202 6,603,297

0.4% 0.0% 0.0% 0.0% 0.0% 9.5%

9 8

$ $ $ $ $ $

$ 310,054 $ $ $ $ $ 8,739,630

0.4% 0.0% 0.0% 0.0% 0.0% 11.7%

57,637,268

63,703,216

Integris Health Edmond OU Medical Center

Oak Tree Partners LLC Henderson Hills Baptist Church Target UPC Acquisition Corp. OSBI Totals Total Electric Revenue (see Table 6)

10 9

$ 61,594,388

$ 63,667,237

$ 71,938,538

Source: City of Edmond Utility Customer Service Department

151

$ 69,154,723

$ 74,756,124

$ $ $ $ $ $ 10,743,399 $ 78,135,179

0.0% 0.0% 0.0% 0.0% 0.0% 13.7%

$ 89,935,863

$ 94,970,481

CITY OF EDMOND, OKLAHOMA ELECTRICITY RATES LAST TEN YEARS TABLE 8

Rate Code 13

Rate Schedule R -1

Units

Edm Elec 01/01/2007 01/01/2010

$/mo

Edm Elec 01/01/2010-11/01/13

Edm Elec 11/01/201311/1/2014

Edm Elec 11/01/201411/1/2015

Edm Elec 11/01/201511/1/2017

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

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 14

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

$/mo

(Continued)

152

CITY OF EDMOND, OKLAHOMA ELECTRICITY RATES LAST TEN YEARS TABLE 8

Rate Code 05

Rate Schedule 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

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

PL-TOU Power & Light Time-of-Use Customer Charge TOU Meter Charge (Summer) Capacity Charge Summer Max Billing Demand On-Peak Hrs Demand Winter Max Billing Demand Energy Charge First 1,000,000 kWh All Add'l kWh

Units

Edm Elec 01/01/2007 01/01/2010

$/mo $/mo

Edm Elec 01/01/2010-11/01/13

Edm Elec 11/01/201311/1/2014

Edm Elec 11/01/201411/1/2015

Edm Elec 11/01/201511/1/2017

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

5.43

5.70

6.70

6.77

6.80

$/kWh $/kWh

0.0395 0.0365

0.0415 0.0383

0.0423 0.0391

0.0428 0.0398

(Continued)

153

CITY OF EDMOND, OKLAHOMA ELECTRICITY RATES LAST TEN YEARS TABLE 8

Rate Code 35

GPWR

Rate Schedule LPL-TOU Large Power & Light Time-of-Use Customer Charge Capacity Charge (new 25% ratchet) Summer (Jun-Oct) mo. Max. Demand On-Peak 2p-8p (except Sun.*) Winter (Nov-May) Energy Charge First 2,000,000 kWh/month All Additional kWh/month * 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) Off-Peak kWh/mo Winter Season: All 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

Units

Edm Elec 01/01/2007 01/01/2010

$/mo

01/01/2010-11/01/13

Edm Elec 11/01/201311/1/2014

Edm Elec 11/01/201411/1/2015

Edm Elec 11/01/201511/1/2017

147.98

73.50

600.00

650.00

$/kW $/kW $/kW

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

$/kWh $/kWh

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

$/kWh $/kWh $/kWh

$/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

Monthly KWH

5.52 5.66 14.37 8.24 11.64

7.49 5.86 12.91 8.06 11.62

8.49 6.86 13.91 9.06 12.62

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.)

OAL-1 Outdoor Security Lighting Base Charge 7,000 Mercury Vapor * (71kWh/mo) 9,500 High Pressure Sodium (41kWh/mo) 14,000 Metal Halide - Directional 15,500 High Pressure Sodium 25,000 High Pressure Sodium *Not available for new installations

Edm Elec

Existing Wood Pole 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

OWD

LM-1

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

5.37 7.24 8.01 8.97 9.93

01/01/2010-11/01/13

Edm Elec 11/01/201311/1/2014

Edm Elec 11/01/201411/1/2015

Edm Elec 11/01/201511/1/2017

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 (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

Edm Elec

CITY OF EDMOND, OKLAHOMA ELECTRICITY RATES LAST TEN YEARS TABLE 8

Rate Code

Rate Schedule 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)

Units

Note: Data is presented only for years including and subsequent to implementation of GASB 44. Source: City of Edmond Utility Customer Service Department

156

Edm Elec 01/01/2007 01/01/2010

Edm Elec 01/01/2010-11/01/13

Edm Elec 11/01/201311/1/2014

Edm Elec 11/01/201411/1/2015

Edm Elec 11/01/201511/1/2017

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

CITY OF EDMOND, OKLAHOMA HISTORICAL UTILITY CUSTOMERS LAST TEN FISCAL YEARS TABLE 9 FYE June 30, 2017 2016 2015 2014 2013 2012 2011 2010* 2009* 2008*

Electric 39,018 38,468 37,953 38,110 37,665 36,785 35,827 35,300 34,867 34,635

Water 29,798 29,286 28,770 28,747 28,137 27,551 27,027 26,756 26,434 26,233

Wastewater 30,584 30,112 29,983 29,958 29,260 28,793 28,321 28,413 28,062 27,902

*Prior to FYE June 30, 2011, numbers were based on calendar year.

157

CITY OF EDMOND, OKLAHOMA TEN LARGEST WATER and WASTEWATER CUSTOMERS FISCAL YEAR ENDED JUNE 30, 2017 Table 10

WATER CUSTOMERS University of Central Oklahoma Edmond Public Schools City of Edmond Edmond Medical (OU Medical Ctr) BRE Silver MF Second OK Rolling Green Apts Apple Village MH Est YMCA DW Wynn LLC Kickingbird Hills LLC

WASTEWATER CUSTOMERS University of Central Oklahoma Edmond Public Schools BRE Silver MF Second OK City of Edmond Rolling Green Apts Edmond Medical (OU Medical Ctr) Integris Health Edmond AE Sunset LLC Enclave Apartments Covell Village LLC SL Copper Lake Estates, LLC

Usage (gallons) 68,899 38,704 33,206 13,713 14,769 15,288 11,668 10,703 10,622 10,175 Usage (gallons) 31,967 28,583 14,769 13,989 15,288 11,213 8,132 4,475 4,063 5,015

Comparisons to ten year prior were not available. City began tracking data in FY 17.

158

Revenue $523,507 325,414 289,509 100,250 96,569 94,870 79,236 78,247 65,556 63,933

Revenue $186,842 132,284 91,479 85,483 61,383 40,967 39,491 36,740 35,762 31,156

% of Total Revenue 2.03 1.26 1.12 0.39 0.37 0.37 0.31 0.3 0.25 0.25 % of Total Revenue 1.27 0.9 0.62 0.58 0.42 0.28 0.27 0.25 0.24 0.21

CITY OF EDMOND, OKLAHOMA SALES TAX RATES OF DIRECT AND OVERLAPPING GOVERNMENTS Last Ten Fiscal Years TABLE 11 2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

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 2008 $

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

2009

55,375 29,076 2,787,641 28,500 395,719

2,966,272 -

4,257,938 -

2010

98,379 64,906 2,962,614 36,612 318,134

2011

42,304 1,736 2,904,097 36,107 213,983 2,311,014 -

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

631,941

708,417

643,930

658,976

627,313

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

2,669,621 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 -

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

248,418

259,991

248,369

255,986

272,925

23,351

21,599

15,736

15,840

22,207

163,301 352,794 948,339 376,616

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

192,498 43,938,901

323,703 41,463,130

530,895 42,987,561

677,950 47,925,677

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

2,689,076 4,844,080 2,956,101 5,199,041 4,196,902 806,783 1,347,014 8,165,460 18,522 2,024,068 15,702 480,483 17,679 -

256,191 41,369,153

448,675 476,835 7,718,137 692,889 (13) (20,517) 58,761,128

764,894 611,217 7,092,658 702,250 (139) 667,328 61,376,116

(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 THREE FISCAL YEARS TABLE 13 FYE June 30, 2017

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%

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

FYE June 30, 2016 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%

Source: Oklahoma Tax Commission

161

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

FYE June 30, 2015 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%

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

CITY OF EDMOND HISTORICAL SALES TAX REVENUES LAST TEN FISCAL YEARS TABLE 14 Fiscal Year Ended June 30, 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008

Sales Tax Revenues (1) Rate 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 3.25% 40,761,936 (1)

3/4 Cent $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 9,406,601

(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 -1.30% 1.24% 4.30% 2.85% 13.11% 5.84% 3.57% -5.83% 7.00% 3.56%

CITY OF EDMOND, OKLAHOMA RATIO FOR OUTSTANDING DEBT BY TYPE Last Ten Fiscal Years TABLE 15

Governmental Activities Revenue Capital Fiscal Bonds Leases Year Payable Payable 2008

Business-Type Activities Revenue Captial Bonds Notes Leases Payable Payable Payable

76,430,000

$ 62,620,000

$ 23,188,242

$ 50,665

2009

72,985,000

58,685,000

22,186,681

2010

69,390,000

54,590,000

2011

66,845,000

2012

62,750,000

2013

73,260,000

2014

Total Primary Government

Total Debt Per Capita*

162,288,907

7.06%

2,047

50,761

153,907,442

6.70%

1,911

21,156,506

145,136,506

5.13%

1,783

50,695,000

20,096,707

137,636,707

5.07%

1,691

46,625,000

19,010,890

128,385,890

3.96%

1,536

42,400,000

17,891,382

133,551,382

3.97%

1,582

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

* Population is calculated at calender year end prior to fiscal year. See Table 16

163

% of Personal Income

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

Fiscal Year

Population

2008

80,364

(4)

2009

80,535

2010

Less Debt Service Funds

Gross Bonded Debt

Net Bonded Debt

Ratio of Net Bonded Debt to Assessed Value

Net Bonded Debt Per Capita

716,953,613

0.00%

(5)

762,213,816

0.00%

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%

Note: * (4) (5)

Details regarding the city's outstanding debt can be found in the notes to the financial statements. Oklahoma County Assessor's Report 2017 City of Edmond GIS Department, estimate only based on current Building Permits for 2008 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, 2017 TABLE 17

Jurisdiction

Net (1) Debt Outstanding

Percentage (2) Applicable to City of Edmond

Amount Applicable to City of Edmond

Direct - City of Edmond

62,153,107

100.00%

$62,153,107

Overlapping: Edmond School District

131,110,009

53.88%

70,642,073

46,541,322

14.43%

6,715,913

Oklahoma County

Total

$239,804,438

(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

$139,511,093

CITY OF EDMOND, OKLAHOMA LEGAL DEBT MARGIN INFORMATION Last Ten Fiscal Years TABLE 18

2008

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

71,695,361

$ 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

71,695,361

$ 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

0.00%

Legal Debt Margin Calculation for Fiscal Year 2017 Net assessed valuation

$ 1,060,520,613

Debt limit (10% of total assess value) Debt applicable to limit: General obligation bonds Less: Street bonds outstanding Total net debt applicable to limit Legal debt margin

$ 106,052,061 $

$ 106,052,061

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 2008 Sales Tax and Utility Revenue Bonds Series 2001, 2003, 2004, 2005 Utility Revenue Bonds Series 1998, 1999, 2003, 2004, 2005 OWRB Series 2005, 2006

98,908,461 114,558,163 114,558,163

$ 79,729,807 72,725,121 72,725,121

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

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

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

Net Revenue Available for

Maximum Annual

Revenue Bond

Debt Service

Coverage

6,882,981 8,443,233 8,443,233

2.79 4.95 4.95

25,303,650 49,057,387 49,057,387

6,822,981 8,443,233 8,443,233

3.71 5.81 5.81

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

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

Eligible 1 Expenses

Excludes depreciation and amortization expense.

167

19,178,654 41,833,042 41,833,042

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)

31,816

34.8

Percent with College Degree or Higher (5)

School Enrollment (3)

Unemployment Rate (4)

20,272

4.3%

2007

79,270

$ 2,522,054,320

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%

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

2007

Employer

Product/Business

Rank Employees

2017

% of Total

Rank

Employees

% of Total

Edmond Public Schools

Public Education

2,132

37.1%

2,807

39.7%

University of Central Oklahoma

Higher Education

1,073

18.7%

1,427

20.2%

City of Edmond

Local Municipality

635

11.1%

726

10.3%

Hospital

510

8.9%

400

5.7%

Adfitech

Quality Control for Mortgage Industry

275

4.8%

384

5.4%

Petra Industries

Electronic Distribution

257

4.5%

325

4.6%

INTEGRIS Health Edmond

Hospital

333

4.7%

Mercy Edmond I-35

Clinic and Wellness Center

316

4.5%

Summit Medical Center

Surgical Treatment Center

191

2.7%

Pelco Products

Traffic, Decorative, & Utility Hardware

170

2.4%

Remy International

Auto Parts Manufacturing

430

7.5%

0.0%

SSJ Technologies

Plastic Card Technologies

1.7%

Cox Communications

Communication Services

188

3.3%

5,744

100%

7,079

OU Medical Center

147

Totals

Source: Edmond Economic Development Authority 1

Formerly Edmond Medical Center Formerly Unit Parts

169

2.6%

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 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 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 22 14 6 1 15 7 2 2 119

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

114 22 10

114 23 9

123 25 9

120 30 7

120 31 9

114 6 2 24 8 300

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

25 5 14 44

25 5 12 42

25 5 13 43

25 6 12 43

25 7 11 43

25 7 10 42

40 40

41 41

42 42

46 46

Utilities: Electric Water Solid Waste Wastewater Drainage Utility Customer Service Central Warehousing Total Public Works

48 43 21 21 5 38 0 176

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

Total Full-Time Budgeted Employees by Function/Program

679

685

686

685

686

693

700

716

720

752

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 2017

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)

1 126

1 138

1 139

1 144

1 147

1 148

1 152

5 6 1 26

5 6 1 29

5 5 2 29

5 5 2 35

5 5 2 44

618 4,458 91

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

4,821 22 24 13 1 1 1 3

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

474 3,982

480 4,092

484 4,129

493 4,315

500 4,392

502 4,388

507 4,473

516 4659

523 4827

526 4879

20,000 11,000

22 431 128 9,000

22 438 133 9,000

22 449 136 9,000

22 407 100 9,000

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

2008

2009

2010

Physical Arrests Parking Violations

2,364 1,086

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

Traffic Violations

19,815

18,821

17,409

17,480

14,196

14,151

13,311

10,751

11,152

11,460

Emergency Responses Fires Extinguished Inspections

5,020 210 883

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

258 12

259 11

255 11

262 10

242 8

218 8

241 18

223 24

196 17

193 18

261 91 4,741 477

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

20 13 1 7 1 2 5 14

20 16 1 7 1 2 5 14

20 16 1 7 1 2 4 14

844 10,381

1,120 5,419

2,309 6,500

6,525 4,086

2,332 3,338

4,332 4,034

69,361 19,726

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

New Water Connections Water Main Breaks Average Daily Produced (Thousands of Gallons) Peak Daily Produced (Thousands of Gallons)

412 60 10,130

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

19,950

21,910

22,078

21,177

21,906

22,097

19,815

18,400

19,889

19,080

Average Daily Sewage Treatment (Millions of Gallons)

7,300

6,850

7,180

6,900

7,400

7,000

7,300

7,680

7,150

0 268,759 61,089

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

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 200000000

700

180000000

600

160000000

500

140000000 120000000

400

100000000

Residential

300

Commercial

Residential

80000000

Commercial

60000000

200

40000000 100

20000000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Residential Construction Fiscal year 2017 2016 2015 2014 2015 2012 2011 2010 2009 2008

Number of Permits 551 501 601 561 638 561 638 506 337 444

Commercial Construction

Construction Cost

Fiscal year

Number of Permits

174,282,232 175,957,069 192,714,809 174,720,033 193,540,218 174,720,033 193,540,217 147,731,866 68,660,592 144,263,081

2017 2016 2015 2014 2013 2012 2011 2010 2009 2008

52 68 45 39 33 39 33 64 41 77

Source: City of Edmond Public Works Department Fiscal building permit reports

173

Construction Cost 41,133,249 90,524,820 68,355,573 78,136,825 41,123,830 78,136,825 41,123,830 181,906,271 30,497,140 74,341,194

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