CITY MANAGER’S MESSAGE

Citiz ens Mayor & City Counci l Boar ds & C ommi ssi ons

Authori ties & T r us ts

City Attor ney R isk Management

City Manage r

Munici pal Judg es ACM Admini strati on

F ire

Poli ce Par ks and R ec Co mmuni ty Image IT Admini strati ve Ser vic es Hu man R esour ces

Urban F or estr y Code E nfor cement Oi l & Gas T raini ng F inancial Serv ices

Insur ance/ Benef its Payr oll

Animal Welfare Ar cadia Lake Senior Center Go l f Par k Maint. Recr eati on

Cemeter y F es tival Mkt Plac e Peli can Bay Pur chasi ng T reasur y Budget/Acc t. Utili ty C ustomer Ser vic e

Management Ser vic es

Mark eting/PR

Publi c Safety Communi cations & Emergenc y Mgmt

ACM Operati ons s City C ler k Offi ce

ECVB Munici pal Court

Wastewa ter T reatment Wate r P lant Water Wel ls

Water R esour ces Buil ding & F ire Co de S ervi ces Engineer ing CDB G Utili ty F ie ld Ser vic es

Planni ng/Z oning Elec tri c Meter Ser vi ces Water/WW Line Maint T raffic Contr ol Str eet

Publi c Wor ks F ield Ser vic es

Publi c Wor ks Admin Veh ic le Maint. DCC

F ac il ity Maint.

Soli d Waste

TAB PAGE

EXECUTIVE SUMMARY

FY 21-22 Budget Message

Honorable Mayor Davis and members of the City Council

It is my pleasure to submit the proposed annual budget for 2021-2022 Fiscal Year and the Five-Year Financial Plan for the years 21-22 through 25-26. Our Finance team has done tremendous work in directing our organization through this extensive process. I also want to thank the people from our various departments who have been involved in preparing this information.

Our ongoing internal mission, Trustworthy Service through Continuous Improvement, continues to be the foundation for the culture of our organization, reflected in our 8 Core Values of Customer Service, Integrity, Accountability, Inclusion, Innovation, Communication, Professionalism, and Teamwork.

The BIG Picture

The total proposed amount of next year’s budget, or total estimated costs, is $363,663,946. This is a 13% increase over the current budget due mainly to increased capital outlay. Edmond’s total sales tax rate of 8.25% continues to be the lowest in the metro area. This total includes our local tax mix of 3.75% plus 4.5% paid to the State by all cities in Oklahoma.

Our local economy has performed so much better than we anticipated during the COVID-19 situation. Although our situation is certainly not unique among cities, we continue to be very blessed. Through three quarters of our current fiscal year which ends June 30, sales tax revenues have increased 4.3% above last year, compared to a conservative zero growth budget projection. Use taxes were projected to increase 5%, and after nine months we are 25% above last year. Combined sales and use taxes are up almost 9% from a year ago.

The special purpose sales taxes approved by voters in 2000 for Fire, Police and Capital Improvements continue to provide critical revenue. These taxes include a quarter-cent for Fire, an eighth-cent for Police, and three-quarter cents for Capital Improvements. Please also remember that Fire and Police also receive two-thirds of the revenue in the General Fund.

An easy-to-understand snapshot of the City’s financial health is the “Performeter”, an annual financial statement analysis developed and prepared by Crawford & Associates. The current review is based on data for the fiscal year ended June 30, 2020 and is also available on our web site. The Performeter identified Edmond’s overall rating as 8.1 out of a possible 10, an increase from last year’s 7.7. The report noted “Edmond’s overall financial health remains well above satisfactory and is an overall improvement when compared to the prior year.”

City Council Strategic Plan

You review your formal Plan twice each year and it is updated annually.

General Fund Revenues

Sales and Use taxes are the critical revenue sources for this fund, which is even more important since Edmond receives NO property tax (ad valorem). Property tax is not available in Oklahoma for cities to help fund operations. However, many cities of our size or larger do levy a small property tax that can be used to fund capital projects. Oklahoma is the only state in the U.S. that funds cities in this manner, and someday that has to change.

As always we will be conservative in estimating next year’s sales and use tax revenues, but not as conservative as we were a year ago in trying to forecast the impact from COVID. For next year’s budget we are projecting a 3.25% increase and for the remaining four years of the Plan we are projecting a 2% annual growth in sales tax, as compared to this year’s zero growth projection. We are projecting 10% annual growth in use taxes for next year’s budget and a 5% increase for the remaining four years of the Plan.

Consequently the revenue generated from a penny of sales tax in next year’s budget is estimated to be $20,000,000.

You established a formal policy several years ago that provided for a “preferred minimum” of 10% in unreserved funds (Reserve for Emergencies and Shortfalls) for the General Fund. At the end of the current budget year this percentage is estimated to be 7.18% compared to a 4.35% projection, and 6.81% for next year’s budget. To keep these percentages in perspective however, remember that we always budget maximum expenditures, which makes the assumption that all budget $$ will be spent, and we always budget lower-thanexpected or conservative revenues. Each year this results in an “artificially low” identified cash balance by design.

Next year’s budget projects General Fund revenue will increase 5.5%. In this year’s budget investment income decreased, and the coming budget estimates an additional decrease of approximately 17% as a result of falling interest rates.

The automatic transfers from General Fund to Fire and Police operations are estimated to be $20,303,764 for Fire and $24,905,951 for Police.

General Fund: Assistance for Outside Agencies Social Agencies and Community Enrichment

These annual budget recommendations are developed by the Community Agency Review Committee (CARC), a group of 6 citizens who work closely with Todd Hildabrand from our office. They review all funding applications, interview the various agencies, and then prepare funding recommendations. Next year’s budget includes all the funding recommendations exactly as submitted by the CARC. The same agencies are recommended for funding in next year’s budget, which includes 9 Social Agencies and 11 Community Enrichment entities.

The combined total annual funding cap for both categories is 3.0% of current sales collections.

Guthrie/Edmond Regional Airport

The airport operation is equally funded by both communities for operating and capital expenses. My recommendation is to reduce what has been an annual placeholder amount of $200,000 to $100,000 for all five years of the Plan. Only a portion of the amount has been spent in recent years due primarily to very limited capital activity, and this reduction more accurately reflects the existing situation.

Edmond Economic Development Fund

Our electric utility provides the allocations for this fund (page 2.18), which provides ED assistance to both existing and potential new businesses. The recommendation is to continue the annual $100,000 allocations for all five years of the Plan.

Last year this fund provided $700,000 for the City’s portion of the Ice House Project, a downtown public/private redevelopment project. This assistance involves the construction of an 80-space parking lot on the south side and the paving of an alley on the north side.

Special Revenue Funds

Edmond will be receiving a one-time allocation of $12M from the federal ARP (American Rescue Plan) for economic assistance from the COVID pandemic. A separate fund for this money will be established in next year’s budget, the American Rescue Plan Act of 2021. We will receive a $6M allocation in the current budget, and another $6M next year. We are projecting for this full amount to be spent in next year’s budget. We are still reviewing the spending guidelines/requirements however, so no recommendations have yet been made concerning how these funds will be spent.

PUBLIC SAFETY LIMITED TAX FUNDS

Whenever sales and use tax collections plus other GF revenues exceed budget projections, then both the Fire and Police Departments receive additional revenue. This situation has occurred in most years since voters approved the Public Safety sales taxes in 2000. Although the amount of this additional revenue is never known until September in the next fiscal year, for comparison purposes the Fire Department received $1,228,147 and the Police Department received $1,001,207 in the current budget.

Fire Department

The Fire Department’s projected expenditures exceed projected revenues in each of the coming five years, a very unusual occurrence in this budget. This is due to several good reasons, including equipment replacements, initial funding for major renovations of two fire stations, upgrades to emergency alerting systems, various capital expenses, anticipated increases in staffing, and the costs of conducting recruitment/hiring processes in three of the next five years. This unusual situation is not really a concern however, as several of the above expenses only occur periodically, and the FD continues to benefit from a healthy reserve balance which will be used to balance the budget in all five years. At the end of the Five-Year Plan the estimated amount of the reserve balance will still be close to $10M.

The Department is currently working with an architect who is evaluating the feasibility of a major renovation to Fire Station 3, with the hope that this station can undergo a major

renovation rather than having to be rebuilt at another site. If a renovation is feasible, work will begin in 2021 or early 2022. While the initial funding will come from the FD, this amount will be repaid from the 2017 repurposed capital improvements sales tax in the next few years. A similar renovation project and funding plan for Station 1 is included in year four of the Plan.

The FD will work with the Planning Department to perform an internal fire station Location Study later in this calendar year. Chief Goodwin is then planning to recommend in 2022 a proposed location and timeline to add a Fire Station # 6.

The Department will start a new internal Academy to train twelve new recruits in the fall of this year. Six of the twelve recruits will fill vacancies in Suppression. The remaining six will allow the Department to place a new two-person squad into service in order to improve response capabilities for our citizens. The FD has also budgeted for two additional academies in the outer years of the Plan.

One frontline Quint (combination pumper and ladder truck), two frontline Brush Pumpers and several staff vehicles are due for replacement in next year’s budget. Several other frontline vehicles are scheduled for replacement in the remaining years of the Plan. The equipment and the vehicles have been identified, scheduled and budgeted in the Fleet Management Fund in Public Works, in conjunction with Vehicle Maintenance.

Police Department

The Police budget is again projecting positive balances for next year’s budget and the outer 4 years of the Plan. Large capital expenditures for end-of-life radios and in-car computers are proposed in FY 21-22 to ensure reliable technical capabilities for first responders.

The Department will begin internal Police Academy 21-07 in May, and expects 10 new Officers to graduate on October 1, 2021. Following a 14-week Field Training program, Officers will be eligible for solo assignment in January of next year. Three of the ten positions will back-fill three new School Resource Officer (SRO) positions assigned to Edmond Public Schools. The additional SRO positions are a result of a 3-year, 60% matching grant from the US Dept. of Justice Community Oriented Policing Program. The City and EPS have had a long-standing partnership to provide School Resource Officers in schools, and this program now has eight SROs in service at all three high schools, Boulevard Academy and five middle schools.

The EPD and City Administration has been actively involved in the initial discussions among many different entities in Edmond concerning a “whole community response” in addressing Mental Health concerns. For several years the Department has identified a growing concern with the increase with the number of individuals that must be taken into Protective Custody for Mental Health issues. The Department repurposed a Patrol Officer position to serve as a Mental Health Liaison Officer during the 18-19 budget year. Next year’s budget proposes to fund a contract with the OK Dept. of Mental Health for a Mental Health Professional to assist the Liaison Officer in response to and follow-up for citizens experiencing mental health issues. Also included is a proposal to replace an existing vehicle with an unmarked vehicle in transporting mental health patients to minimize the stress associated with being placed in a marked police car.

The much-needed expansion of the Animal Services Shelter Facility is now in operation and should be officially dedicated in May. The 2017 repurposed capital improvements sales tax provided all the funding for the $4M+ project.

ADMINISTRATIVE SUPPORT SERVICES FUND

The fifteen internal departments who provide support to the departments that directly provide services to our citizens are financed by this fund. “Cost allocations” or internally budgeted charges to the user departments are identified to pay for these internal services. For many years this process has involved a consultant who works with all of our various departments in very interactive discussions. The process has been improved over the years and it now is more straightforward, based on the actual costs incurred in the current budget instead of future budgets, resulting in budget authority increasing this year by about 5.1%.

Edmond Public Works Authority Electric Fund

Edmond Electric (EE) began as a City-owned and operated utility over a century ago, and has always featured competitive rates and outstanding service to most Edmond residents. For many years EE has consistently provided ongoing support of general governmental operations, and this support has been very helpful in keeping local taxes lower than what would have been possible otherwise. This significant support for next year is budgeted to be $7,620,010 which includes $4,000,000 as a transfer to the General Fund and $3,620,010 in right-of-way use fees.

The implementation of an Advance Metering Initiative (AMI) or Smart Meter system continues to move forward. This system will greatly improve our outage management system for both utilities, our ability to monitor peak demand, and it will allow customers to monitor their water usage on a daily basis. The rollout of electric and water meters in a test area is scheduled for June, and the beginning of the city-wide rollout of 3 years should begin by the end of this calendar year. The Electric and Water Departments are sharing the cost of this $16M program.

EE will continue its substation modernization program. Transformer # 2 at the Danforth substation will be replaced, and the associated relaying will be upgraded to electronic devices. The relay upgrade will also be done for Transformer # 3. At the Fairfield substation the switchgear for Transformer # 2 will be upgraded. The Garber substation will also receive a relay upgrade and other improvements.

The Edmond Economic Development Authority (EEDA) will again receive most of its financial support from EE, and in next year’s budget that amount will be $820,577 (28.2% increase). This increase is primarily due to reimbursement of micro grants that were not covered by CARES money in the amount of $93,000, pandemic incentives of $25,000 and Streateries funding of $30,000.

Water Fund

This fund finances the City’s drinking water system, which includes over 550 miles of distribution lines, 52 water wells, and the Arcadia Lake Treatment Plant. The 21-22 budget includes the third of five phased-in 5-7% annual increases. (As a reminder, you delayed the year two increase by a year in November of 2019).

We have extensively discussed the major capital improvements that will be accomplished to both the Water and Wastewater systems over the next five years to address critical bigpicture needs. The water projects include adding additional treatment capacity at the Water Plant to accommodate future growth, the drilling of additional well, the upsizing of current distribution lines and additional storage capacity for the system.

We are using 30-year terms to service this debt, to ensure that future utility customers rightfully share in paying for these long-term improvements. As you know, other cities in the metro area are also addressing similar issues, also with very large expenditures.

These improvements were formally identified in the 2013 Water and Wastewater Master Plan. In 2019 you agreed with staff recommendations to adopt a more phased-in approach to the implementation of a new Water Treatment Plant at the same basic site. The Water System Master Plan Update was recently revised in March to identify the progress that has been made, and this document is available for public review on our website.

Next year’s projects include the new Intake Structure at Arcadia Lake, the next phase of Water Plant construction (the second of three phases, with the final phase involving the main plant construction), the continued drilling of additional wells, the design of a new water at the UCO water storage site at Ayers & Bauman, along with ongoing rehabilitation/replacement of existing water lines.

The annual well rehabilitation program provides for a minimum of seven wells per year from a total of 52 operable wells in our system.

Edmond participates in the OKC mandatory outdoor watering program as a requirement of our water purchase agreement. Another provision in this agreement involves working together with the State, OKC, and the Tribes toward the adoption of a joint Water Conservation Plan. Next year’s budget includes funding to hire a Water Conservation Coordinator. This individual will develop and promote our Water Conservation Outreach Program that involves conducting residential irrigation audits, hosting classes, and performing additional public education—all designed to continually make our residents more aware of the critical need to conserve our finite water supply.

General City services will continue to be supported by this fund through an allocation of $1,167,469 in ROW use fees.

Wastewater Fund

This fund finances the City’s wastewater collection and treatment system. Our system includes over 450 miles of collection lines, 6 lift stations, the operation of the Coffee Creek Water Resource Recovery Facility (WRRF) and other facilities. Along with water rates,

wastewater rates will also increase in the third year of the same five-year phased-in increase program (3%).

All of the projects funded through the $43.5M 2016 bond issue have now been completed and are operational. These projects include the Spring Creek lift station replacements, the Spring Creek force main, the Water Resources Admin/Lab facility, the LS-2 (I-35 and 33rd) project which replaces the 33rd and 40th St. lift stations, and an interceptor project near 2nd and Santa Fe.

The WRRF identified above required a $171M bond issue and should be completed late this year. This facility will increase plant capacity from 9 to 12 million gallons per day (MGD) and will meet the State-mandated nutrient removal requirements.

An allocation of $755,302 In ROW use fees to support general City services will be provided by this fund.

Solid Waste Fund

Collection and disposal services to over 33,000 residential customers and over 2,600 commercial customers are provided by this fund, supported entirely by user fees. The residential recycling program includes single-stream recycling, full-sized carts with lids and rollers, the acceptance of cardboard, and every other week curbside pickup.

General City services are supported by this fund through an operating transfer, which in next year’s budget will be $383,979.

Drainage Fund

The only source of revenue for this fund is a $3 monthly residential fee, which has always been inadequate and results in projects being accomplished by “pooling” sufficient revenue for two or more years. Consequently our Community Image/Forestry Dept. in the General Fund provides for the maintenance of City-owned detention areas.

Arcadia Fund

Recreational opportunities at Arcadia Lake are provided through this fund, and the charges for services normally produce over $1.1M per year in revenue. Weather is usually the determining factor of the success or the lagging in Lake revenue. In FY 19-20, the Lake experienced a loss of around $400,000 revenue due to wet weather conditions. The pandemic coupled with good weather conditions created unprecedented usage at Arcadia Lake in FY 20-21. Activity generated nearly a quarter of a million dollars more than a normal year, or around $1.35M.

Because of this increased usage no fund transfers are shown from the Park Tax Fund to help support the Lake in any of the five years of the Plan. Lake improvements will instead come directly from the Park Tax to support refurbishment within different parks and in future years for additional park amenities at Carl Reherman Park.

People looked for ways to find safe ways to enjoy the outdoors and get some physical activity and the Lake provided a great getaway. For some citizens they discovered Arcadia Lake and we have seen continued strong interest as we enter the Spring season with early strong use of the campgrounds. What was considered normal levels of lake usage in past years appear to be jumping to a new level of activity.

The recently completed improvements to create trail head parking access to the Spring Creek trail from a partnership with Integris from their Medical Office building parking lot and from the gate entrance at Spring Creek Park were heavily utilized. An additional 2.4 miles of trail along Route 66 is now open which connects our lake parks along Route 66 together. Staff and our design consultant are working on the possibility of a low water crossing to connect the Spring Creek trail to the Route 66 trail to create trail connective between most of our lake parks. We will be seeking grant support or community donations to make this next section of trail possible.

It has become clear with the expanded interest in Arcadia Lake we need to spend additional resources on park maintenance since many of the improvements are original to the opening of the Lake. We are working on an aggressive multi-year program to upgrade many of the amenities we provide. A Task Force has been created to look at the services we provide and things we should consider making available. The Task Force includes all the various user groups working cooperatively on a vision and action plan for the Lake.

The final element that is being consider is the design development of a remote Police Station which is being funded from the 2017 CIP Sales Tax for design development in FY 21-22. This new building will provide a more visible presence for the PD on the eastern side of Edmond.

Golf Course Fund

Kickingbird Golf Course continues to be operated as an enterprise fund, in the sense that revenues cover operating expenses. Major capital expenditures must be subsidized from other funding sources such as the Park Tax or CIP Sales Tax funds. In the same manner as Arcadia Lake, weather always plays a critical role in course revenue. Extremely hot or wet weather can result in revenue declines that require subsidy support for operations. Like the Lake, the pandemic encouraged safe outdoor activities like playing golf. In the current budget the period from July 1 to March 31 generated 28,558 rounds of golf played compared to the prior year’s number of 26,856, a 6% increase that generated about $150,000 in additional revenue. Kickingbird Golf Club will soon enjoy its 50th Anniversary this Memorial Day weekend 2021. Kickingbird is the oldest golf course in the community and considered a great public golf course in the metro. A series of necessary very major capital projects are planned for the course that will help Kickingbird stay competitive and improve this significant public asset. At the request of the City Council, we have moved up the development of the Golf Course Clubhouse project. The new building is being designed to enhance the experience for the

golf community, and yet the improvements will be more welcoming to other members of the community to enjoy the facility. A separate banquet hall will be developed by the Number 9 Green and provide a much better experience to our tournament guests, and the new hall can also serve as a public venue that can be rented out for other events. New golf practice areas will be developed with the project and those areas can be developed into short practice holes for young golfers and other family members to enjoy playing golf together. Finally, the driving range will be lengthened with plans to construct an indoor teaching facility on the range to provide year-round golf instruction. We are also pursuing the creation of a pavilion area near the clubhouse for a more relaxed driving range experience that provides a gaming experience similar to another facility in the metro that provides entertainment on their range. About every 20-25 years golf course greens need to be rebuilt. With the building of a new clubhouse it is appropriate, necessary and timely to accomplish the improvements out on the course to replace the irrigation system and rebuild the greens at the same time. Doing this work at the same time means the course will be closed from mid-June 2021 to the fall of 2022.

When all the work is completed from all outward appearance, we will have a brand-new facility. With these improvements, our goal is to make the golf complex a great place to visit to enjoy a meal, the views of Edmond from the clubhouse, and take part in other activities hosted in the facility which might include playing some golf. We will also work to create a synergy between the development of the former tennis center into a premiere Pickleball facility. Another activity for families to enjoy at this complex. These improvement funds are coming from the 2000 CIP Sales Tax and are estimated to cost in the $17M range.

Park Tax Fund

This fund is financed by the 1/8 cents sales tax for parks, and it has mainly been used for capital improvements within the park system and has also provided subsidy support for the golf course and the lake at different times over the last decade. This fund helps with smaller improvements throughout the Park system. Revenue generated from the Sales Tax provides $2.4M of which $1-1.5M is available annually for capital improvements or major maintenance activities. About $1.2M of this revenue goes for ongoing staffing and operating expenses in parks around Edmond. To fund a major construction project, it either must be built in phases or money allowed to accumulate in the fund to construct a large improvement. With additional CIP funding available from the 2000 and 2017 CIP Sales Tax, some major park improvements are planned from these sources. Many major park improvement projects are included in the CIP Fund sections described later in the narrative. Park Tax funds will also be leveraged as available for park or trail grant improvement projects.

Various design consulting services are being paid from this fund to prepare projects so they can then be accomplished through the CIP funds. These include renovations to Stephenson Park, Hafer Park (Caplinger Field) and design work for the Veteran's Memorial planned in

Bickham- Rudkin Park. Design work is proceeding for additional trail sections and potentially other Lake improvements 1) Trail to connect Spring Creek Trail to the Route 66 Trail; 2) From the west end of Spring Creek Trail extend west to Coltrane which we are calling the Creek Bend Trail; 3) Design of a trail head parking area on the west side of 1-35 Frontage Road in the Fox Lake area; and 4) Initiate the environmental assessment to look at possible locations for a restaurant and Police Lake Station at Arcadia Lake.

This fund provides for the replacement and addition of playground ground equipment in all the City Parks. In next year’s budget the large handicapped accessible playground area near the Mitch Park YMCA has a budget of $350,000 towards replacement and expansion of that equipment working with the potential of a local service club assisting in that project.

Our people continue to seek grant support from the State's Fishery Program for a boat ramp and dock in Carl Reherman Park with matching grant money set aside if funding is successful. Also, we are looking to identify a major funding source besides the Park Tax to do major restoration and improvement work all around the Lake in conjunction with the Arcadia Lake Task Force.

The Park Tax fund in FY21-22 will provide some support in the Stephenson Park renovation project with $250,000 to help with amenities in the park such as tables, benches, and trash containers. The construction funds and playground improvements will come from the 2017 CIP Sales Tax.

Because of the growth in activity at Arcadia Lake no transfers will be needed from this tax to the Lake in next year’s budget. A $100,000 transfer to the Golf Course will be made to help transition the course through the time it will be closed to help pay for the materials our people will use on the course in constructing improvements.

Staff will continue to work with the Park Board in exploring opportunities identified in the Park Master Plan as the driver of future major capital projects.

Ambulatory Services Fund

For many years Edmond has participated in the EMSA (Emergency Medical Services Authority) regional ambulance service, which has earned a longstanding national reputation for outstanding clinical care.

A $3 monthly charge on residential utility bills has provided the City’s annual subsidy to EMSA for over 12 years, and many of the participating cities use such a charge as a way to take financial pressure off the General Fund. Out-of-pocket charges for the EMSACare program are covered by this charge. Our residents are automatically enrolled for participation, but can opt-out during the month of October every year. That decision involves substantial risk however, as those residents are then responsible for this large expense, which are now in the $1,500-$2,000 range.

We remain pleasantly surprised that the $3 amount has not needed to be increased since it was initiated. We project the amount can be maintained for next year’s budget, and this situation is re-evaluated every year as part of the budget process.

Capital Improvement Funds

CIP—General Fund

Included in the General Government budget in the General Fund, this fund provides limited capital funding for specific, smaller needs. This fund has been used for major renovations and repairs of City-owned buildings. In FY 19-20 we completed a joint project with the Metropolitan Library System (MLS) for replacement of the heating and air conditioning system, carpet and ceiling tile replacement and new LED lighting at the Edmond Library. This $2.1M project had a cost share of $1.45M from the City and $650,000 from the MLS. In this year’s budget we have just awarded a project to improve bicycle transportation along Ayers Street: east of the University to Broadway and west of the University to Bryant. The project includes dedicated Bike Lanes to and from the University along this street. The Project cost is $284,749 (Grant support $108,500 and City Share $176,289). The City will initially pay for the project and receive grant funds as a reimbursement. Another project that should bid soon involves increasing the meal-making capacity for Mobile Meals, which utilizes our City building on 5th Street. $200,000 is allocated in next year’s budget, but firm costs will be identified as the project goes to bid.

An allocation of $400,000 is budgeted in all five years of the Plan for ADA (Americans with Disabilities Act) improvements to continue our efforts in our 20-Year ADA Transition Plan. In the current year we started a program to fill gaps in our sidewalk system where sidewalks need to be constructed to connect with existing sidewalks. The Plan contains $200,000 per year in all five years for this type of work. This fund has been used in the past for major building repairs for City property. As a precaution, we have set aside $100,000 only in next year’s budget to address any major building repairs that might need to be addressed quickly.

2000 Capital Improvement Fund

This fund has provided the primary financing for capital improvements in Edmond for many years, through a 3/4 cent tax initially approved by the voters in 1996 and indefinitely extended in 2000. Over $110M in bonds have been issued through this fund over the past 20 years. Over $200 Million of construction work has be accomplished since its permanent adoption in 2000.

CURRENT YEAR BUDGET FY 20-21

Every year the City has a major Reconstruction & Resurfacing program. About $3.5 million is set aside each year to reconstruct roadways and alleys around our community. About $2.5M is for asphalt type work and about $1M for concrete reconstruction. When street reconstruction is identified on a roadway, ADA issues are addressed along these adjacent roadways as part of our ADA transition plan. We add a 2.5% escalator to this lineitem in future budget years to try to keep up with inflation.

The biggest project in the current year budget is the completion of the Covell widening from Fairfax to Griffen Boulevard. $8.6M will be expended in the current year of the $10 million total construction cost. The project will be completed this Spring.

The Railroad Quiet Zone (a $4 million project) is now completed and involves improvements at all eleven city railroad crossings. The quiet zone is already having an impact on development opportunities along the corridor especially downtown with new investment and potential investment in multi-family housing and other mixed-use development.

We have so many great projects proceeding in Downtown Edmond, a $1M allocation has been budgeted for Infrastructure Downtown, which will probably be used for various Streetscape or sidewalk improvements to complement other downtown private investment improvements.

This year’s budget includes design work for Cross Timbers Facility Expansion and ADA Sidewalk Improvements along 2nd Street/Edmond Road from I-35 to the west City limits. The sidewalk work will address several issues identified in our 20-yr. ADA transition plan. The City is responsible for the design work cost of the project, but a grant will assist in the construction of the nearly $4M project with the City share being $1.75M.

DEBT SERVICE

Many projects and activities are currently being pursued that could have a major impact on future debt issuance paid from this fund. Last year we advised and presented debt schedules that showed debt retirement of all the currently issued debt by FY 26-27. Debt service is the largest annual expense incurred in this fund. The annual sales tax receipts provide $14.5 million a year. The funds needed for the current year and budget year to service the principal and interest is around $8.3 million. (That represents around 57% of the collected sales tax for this fund.) That leaves $6.2 for other expenditures and as we noted above $3.5 goes to reconstruction of our streets and alleys. As a result not much is left for other activities. The debt service drops significantly in the remaining years of the Plan. The City Council recently approved an advance refunding of two bond issues which will reduce the amount of debt outstanding and have a positive impact on the debt schedule in the future years. The proposed budget identifies the issuance of $40M in new debt to be issued early in the year to try to lock-in a lower interest rate, as it appears that higher interest rates may be returning. The debt is needed to pay for some big projects that are coming. Last year an internal loan from Edmond Electric of $8M was used to finance some of the costs of the Covell widening from Fairfax to Griffen Boulevard which had a total price tag of around $10M, so part of the debt issuance is to pay back Edmond Electric. The big projects that are coming include Golf Course Improvements, Cross Timbers Facility Expansion and Kelly/Danforth Intersection. The attached Debt Schedule for the CIP reflects the change with the refunding. As noted earlier, the current year debt expenditure represents 57% of the sales tax we collect for the fund. The last line on the debt schedule shows how that percentage is dropping even with adding additional debt. Our goal in setting the future debt service is to have that represent 25-35% of the sales taxes collected. The current worksheets accomplish that in the five-year Plan.

PROPOSED BUDGET FY 21-22

The third phase of the Intelligent Traffic System (ITS) should be included in ODOT’s bid letting at the beginning of the next budget. Total construction cost is around $8M and the

City’s share of construction is $2.3M and involves 22 intersections on 15th Street from Santa Fe to I-35 and on Kelly from south City limits to Robin Hill.

We have been able to secure grant support for a project that involves ADA Sidewalk and Ramp Improvements from on 2nd Street/Edmond Road from I-35 across town to the west city limits. The project financing was mentioned earlier. This project will have a significant positive impact on our 20-year ADA Transition Plan.

We have had discussions about the level of improvement that should occur over various sections of Covell and have proceed to obtain design services of final buildout for these two remaining stages of the corridor with roadway and intersection improvements around Covell/Bryant and Covell/Coltrane. Each of these segments will be in the $15 million cost range. However, please remember that current demands for traffic and other improvements around the community compete for these same resources. Staff is recommending that we make the same type of interim improvements that we did at Covell/Bryant at Covell/Coltrane. The Bryant intersection has held up well and allows for the free flow of traffic. The same type of improvement can occur at Coltrane with a price tag in the $3 million range. Staff is recommending the Covell & Coltrane Interim Improvements, which could safely improve traffic flow through that area for at least a decade, until such time that the buildout of these final two sections on Covell can be included into the long-term plan for improvements.

Kickingbird Golf Course Improvements involves the reconstruction of a new golf course clubhouse, a lengthened driving range, an indoor teaching facility on the range, an expanded golf practice area outside of the clubhouse and a separate banquet hall to serve golf tournaments or to be rented for other activities. This work and other planned work on the course has guided the closing of the course as mentioned earlier. This and the work to be done at the former tennis center will make the Kickingbird Golf and Pickleball Center a hub of activity for a large segment of Edmond’s population.

The final project involves the Cross Timbers Expansion of the maintenance facility. $6M is set aside for this work. The current facility has now been in operation for 16 years, and all City support facilities take more staff and equipment to meet the needs of a growing city. The Cross Timbers facility needs this expansion work to keep pace with Edmond’s growth.

FUTURE YEAR BUDGETS

There are not a lot of projects identified in the final two years of the Plan, which leaves resources for other projects. If the 4th High School moves forward in this time frame most of those resources would be needed for that project. Growing sales tax collections does not preclude the issuance of additional debt in the future and this could be layered in with the proposed $40 million debt issuance.

Because of grant adjustments administered through ACOG, expanding the capacity of intersections does not result in the same type of financial support that it did in previous grant cycles, meaning that our intersection improvements will need to be fully funded by the City in future years.

The first project that has been impacted by these adjustments involves the Kelly/Danforth Intersection improvement. This project is now a $6.25M project because we have been unable to secure grant support for the project. This intersection has the highest number of accidents in Edmond, and restricting turn movements near the intersection will be a big part of the project along with adding more turn lanes to increase the capacity of this intersection. This project needs to follow the major waterline project on Danforth that goes through this intersection. Right-of-way acquisitions have been coordinated with that project to assist in the intersection work that needs to be done. This project can proceed in year two of the Plan after the waterline is completed and the utility services are relocated during the coming budget year.

Other future work includes a new Golf Maintenance Building, Danforth Road Widening by North High School, and development of the Veteran’s Memorial. Funds are identified for the Memorial are a placeholder because final scope and future fundraising are yet to occur. We have also identified the Sooner Road Bridge replacement in year 5, if the interim improvements continue to be sufficient for regular traffic loads until that time.

2017 Capital Improvement Fund

In 2016 voters approved a repurposing of the 2012 Public Safety Center half-cent sales tax for a ten-year period for capital projects that started in April of 2017. A Citizens Task Force identified many projects for consideration using these funds. The CIP Advisory Board was then expanded to include members of this task force, and this Board now reviews and makes recommendations for projects for both capital improvement sales tax funds. Both funds are utilized to address the 11 bullet-pointed project recommendations that came out of the task force discussions. Those projects are listed below, and a status note is provided. • City Streets Road Improvements to alleviate traffic congestion (many ongoing projects) • Tennis Center in partnership with Edmond Public Schools (COMPLETED) • Expanded and Improved Sports Facilities (These projects are proceeding to construction: Hafer Park Ballfields, Soccer Complex Renovations and Golf Course Clubhouse and Course improvements) • Downtown Revitalization including potential new library, performing arts center in partnership with UCO and parking garage (A second Library is being pursued) • Public Transportation Enhancement and Intermodal Center (COMPLETED Bus stop improvements and starting to look at possible transit center development) • Expanded and Improved Park System (Stephenson Park Renovation proceeding to construction) • Expanded and Improved Trail System (COMPLETED Route 66 trail at Lake and Access to Trail Head Parking at Integris and Spring Creek Park) • New Fire Station West of Broadway (COMPLETED) and Renovation of Existing Fire Stations (getting started with architect selection to move it forward) • Animal Shelter Addition (COMPLETED) • Consolidation of City offices (Working this with a plan to repurpose buildings not needed by the City in a Request for Proposal along the Littler Corridor) • Police Lake House Replacement (Baffling removed from the list)(Looking at architect selection for the Station project)

• Gracelawn Cemetery Expansion is the only new project that was added to the list (It is nearly completed)

CURRENT YEAR BUDGET FY20-21

This fund has already completed three of the major projects from the Task Force list noted above: Relocation of Fire Station #2, Joint Tennis Center with Edmond Public Schools and the expansion of the Animal Shelter.

Construction on the expansion of the Gracelawn Cemetery should be completed by the end of Spring. Bidding on the Traffic Signals at I-35 and Covell has been completed and should be ready for construction this Summer. The 2nd and Bryant Intersection project has been awarded and is under construction with a Spring/Summer completion scheduled for next year.

PROPOSED BUDGET FY 21-22

Next year’s budget will provide major renovation work to our oldest City park, Stephenson Park, and initiate major improvements to sports fields at Hafer Park and the Service-Blake Soccer Complex.

The Stephenson Park improvements are intended to refresh the park and make it a place that people will congregate to enjoy the amenities of the park and surrounding businesses as part of the downtown redevelopment. Significant private investment around the park in the coming years will provide a significant number of new living units near the Park. The park improvements will have a much larger playground for children, an expanded lawn area for people to create their own outdoor activities and a new pavilion to serve as a focal point for people to visit and relax as they experience this area of downtown. Improvements will start late in the summer and should be ready for full enjoyment by next Spring.

Major renovation work will begin in the proposed budget year at the Service-Blake Soccer complex with a focus on new restrooms, concession area, visitor pavilion and a new inviting entrance to the facility. We often refer to making improvements at our athletic facilities to upgrading them to “tournament quality” and this complex needs that type of attention. Five million dollars is budgeted over two budget years to make these improvements to the facility.

An initial phase of work at Hafer Park will begin to improve the quality of the baseball complex known as Caplinger Fields. Those improvements will add additional parking, ball field improvements on part of the complex and shade structures for the fans. Improving the fan amenities at the ball fields will make them more comfortable for our citizen experience, but will also be more attractive for out-of-town visitors to bring their son or daughter to play at our tournament quality complex.

We believe design work will be initiated on a 2nd Public Library that would better serve the eastern side of Edmond. Once a location is finalized the City would work with the Metropolitan Library System to develop a building plan. Library services are very important to our citizens as our present Library has ranked as the most utilized not only in the metro,

but the State of Oklahoma. Once the land is acquired a schedule for design and construction can be finalized.

Two other projects should begin the design phase in next year’s budget, including both 15th and Kelly to improve the capacity of the intersection and the Police Arcadia Lake Station to provide a more visible presence at the Lake and for an ever-expanding East Edmond.

Future Year Budgets

As noted earlier, grant adjustments administered through ACOG such as expanding the capacity of intersections does not garner the same type of grant support that it did in previous grant cycles, so our intersection improvements will need to be fully funded by the City in future years. Work is planned at Sooner and Danforth along with the construction improvements at 15th and Kelly. The lack of grant support does not allow us to leverage those grant dollars to address additional roadwork in the community.

Upon the completion of the construction of 2nd and Bryant Intersection improvement, work will be initiated at 2nd and Boulevard. Projects like this take a year or more for right-of-way acquisition and utility relocations. Because we do not have an abundance of right-of-way each utility has to be brought in individually to decrease the congestion and allow traffic to flow during their relocation process. Construction of this intersection improvement is scheduled to begin in the second year of the Plan.

With the completion of the design, the Police Arcadia Lake Station will be constructed as noted in future budget years. The other public safety expenditures include the Fire Station Renovations which will initially be financed through Fire Department funds and then reimbursed upon completion in future budget years.

CITYLINK Public Transportation Fund

Edmond’s public transportation service will celebrate its 12th year in the 21-22 budget. This service includes four local routes, an express route to and from OKC, and on-demand paratransit service available within three-quarters of a mile within the city limits from the fixed routes. CITYLINK and other transportation systems throughout the area have experienced ridership declines of 50% or more due to the COVID pandemic. However, it is important to remember that our service continues to provide an important public service to Edmond with around 188,355 rides in 2020. CITYLINK has been at full service throughout most of the pandemic and recently has seen the ridership returning to levels pre-pandemic, especially the paratransit service. Our partnership with Tyler Outdoor Advertising continues as we install ADA-compliant bus benches or shelters along our routes with a second phase of installing additional shelters at high ridership stops beginning this budget year which will continue adding additional revenue. Our system continues to benefit from outsourcing fleet maintenance operations to RATP Dev in 2017. The City of Edmond is in the process of reviewing proposals from qualified and professional transit management companies to operate, maintain and administer the CITYLINK service starting this next budget year. FTA regulations require the City of