table of contents
Director’s Letter 2
Edmond's Numbers 12
City Council & Ward Map 5
General Fund 14
Statement of Net Position 6
Long-Term Debt 19
Change in Net Position 9
Edmond's Top Employers 20
Edmond's Sales Tax 10
Economic Outlook 22
Dear Citizens of Edmond, We are pleased to present our Citizens Report for the fiscal ending June 30, 2013. This Citizen’s Report is a condensed version of our Comprehensive Annual Financial Report (CAFR), both of which are located on our website edmondok.com/budget/reports. The details in this Citizen’s report summarize our City’s financial position based on the audited financial documents contained in the 2013 Comprehensive Annual Financial Report (CAFR). The CAFR is prepared in accordance with generally accepted accounting principles; this report is in summary form and excludes the City’s discretely presented component units: the Edmond Economic Development Authority (EEDA) and the Edmond Historical Preservation Trust (EHPT). The City continued to improve its financial condition with unprecedented growth in its main general revenue source – sales tax. Though the budget assumed a 3% growth, the actual increase from the previous year was 12.13%. Part of this unusual increase was due to the growth in the building repair and new construction areas, as well as broad retail sales spending. Edmond also saw an increase in commercial building permits – providing more opportunities for our citizens to support the City by buying locally. Throughout this report you will find information on the new buildings the City of Edmond either purchased or is in the process of constructing: • a multi-million dollar Public Safety Center, construction began and will be completed 2015 • a new Mitch Park YMCA in partnership with Edmond Public Schools, City and YMCA, opening in 2014 • a new sports complex with hotel and conference building, infrastructure started • a new office building was purchased to house our IT department • a new softball sports park (called the Edmond 66 Park Softball Complex). “Mapping the Growth” of Edmond is our theme for this year’s report as we share with you the growth of Edmond. As you review the report, we invite you to share any questions, concerns or comments you may have. You may contact the Financial Services Department at 405.359.4521 or visit us at 7 North Broadway. The fully disclosed audited CAFR and summarized PAFR may be found online at edmondok.com/budget/reports.
Respectfully,
Ross VanderHamm Director of Financial Services/City Clerk
2
mitch park
ymca
The City of Edmond partnered with the YMCA and the Edmond Public Schools who share in the portion of the cost. The facility has an Olympic size swimming pool, fitness area, indoor elevated running track and a large separate pool with a children’s slide that seems to magically exit the building through a wall and then return to the inside for an exciting ride. 3
charting the
growth
4
The City of Edmond operates under a Council-Manager form of government established by the 1925 Charter. The Mayor and Council are the policy-making and legislative body, and appoint the City Manager as well as the City Attorney and Municipal Judges. The City's Planning Commission, along with our many different boards and commissions, plan for the growth of our commercial and residential development.
city of edmond ward map Choctaw
Henney
Hiwassee
Anderson
Westminister
Post
Douglas
Midwest
Air Depot
Sooner
Coltrane
Bryant
Boulevard
Kelly
Santa Fe
Western
Pennsylvania
Waterloo Bro ad way E x tens
Sorghum Mill
ion
I-35
Coffee Creek
Covell
WARD 4
WARD 2
Danforth
WARD 1 Edmond
15th
WARD 3
33rd
Memorial
Charles Lamb
■
Mayor May 2013–15 chukolamb@aol.com
Council Member Ward 1 May 2011–15 victoria.caldwell@edmondok.com
■
Victoria Caldwell
Darrell Davis
Council Member Ward 3 May 2013–17 darrell.davis@edmondok.com
■
■
Elizabeth Waner
Council Member Ward 2 May 2011–15 ebwaner@gmail.com
Nick Massey
Council Member Ward 4 May 2013–17 nick.massey@edmondok.com
5
Statement of Net Position The governmental activities net position for fiscal year ending June 30, 2013, reflect an increase over prior year’s net position. The business-type activities also reflect an increase in net position. The full disclosed Statement of Net position can be located in our CAFR located at edmondok.com/budget/reports. Unrestricted net position refers to all other net position that is not restricted or invested in capital assets, net of related debt. This represents the amount of unexpended and available resources the City has in funds combined at a point in time to fund emergencies, shortfalls or other unexpected needs. This allows management to track the City’s financial position over time.
Governmental Activities
Business-Type Activities
Totals
2013
2012
2013
2012
2013
2012
Current assets
$111,332
$92,030
$86,243
$86,245
$197,575
$178,275
Capital assets, net
253,176
227,800
210,338
202,302
463,514
430,102
10,556
9,897
7,574
8,086
18,130
17,983
375,064
329,727
304,155
296,633
679,219
626,360
Deferred Outflows
696,561
-
1,061
697,622
-
Current liabilities
25,245
15,160
17,945
19,458
43,190
34,618
Non-current liabilities
74,844
63,784
56,515
60,893
131,359
124,677
100,089
78,944
74,460
80,351
174,549
159,295
1,923
2,184
1,296
1,632
3,219
3,816
179,082
165,302
152,657
139,272
331,739
304,574
Restricted
77,481
65,438
13,162
12,738
90,643
78,176
Unrestricted
17,187
17,859
63,642
62,638
80,829
80,497
$273,750
$248,599
$229,461
$214,648
$503,211
$463,247
Other non-current assets Total assets
Total liabilities Deferred Inflows Net assets Invested in capital assets, net of related debt
Total net position
Definitions Capital Assets: 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. In the government wide financial statements, property, plant and equipment are accounted for as capital assets. In the governmental fund financial statements, capital assets acquired are accounted for as capital outlay expenditures. For more information, see the City of Edmond's CAFR, notes. Net Position invested in capital assets, net of related debt: This component of net 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.
6
Restricted Net Position: Restricted assets include both current and non-current assets that are legally restricted as to their use such as those externally imposed by creditors, laws or regulations or by law through constitutional provisions. The primary restricted assets are related to revenue bond and promissory note trustee accounts restricted for debt service and deposits held for refund. Investments: Securities backed by the full faith and credit of the US Government have historically been considered risk free and were not subject to credit risk ratings for disclosure purposes. In August 2011, Standard and Poor downgraded these securities to AA+. Moody’s Investors Service and Fitch Ratings affirmed their AAA credit ratings. Long-Term Debt: The long-term debt consists primarily of accrued compensated absences, general obligation bonds payable, and revenue bonds payable. This longterm debt is reported net of unamortized premiums, discounts, and amounts deferred from refunding.
Net Position
unrestricted
These numbers represent the available funds to pay for emergencies, shortfalls or other unexpected needs in both the Governmental and Business Type Activities for the fiscal year ended June 30, 2013.
17.1M
$
governmental activities
Sales tax, franchise fees, fines, state and federal grants finance most of the City's services. General Administrative Services Fire Police Street Construction & Repair Park Maintenance
63.6M
$
business-t ype activities
Income from resident utility bills, public golf club and lake fees finance business-type operations. Electricity Water Drainage Wastewater Solid Waste KickingBird Golf Club Arcadia Lake
7
public safety
center
8
The 70,000 square foot Public Safety Center will house the Edmond Police Department, Public Safety Communications and Emergency Management functions. This building is being constructed in the location of the old Administration offices. Funding is provided through a half cent sales tax over a five year period that was approved by Edmond voters. Facility completion is slated for Fall of 2015.
Change in Net Position governmental activities * Revenues
Expenses
100,000 90,000 80,000 70,000
The City’s governmental activities’ increase in net position of $25 million represents a 97% increase from the prior year’s change in net position and is primarily the result of increased tax collections and increase in grant contributions. Total expenses for governmental activities amounted to $70.7 million. Of these total expenses, taxes and other general revenues funded $69.2 million, while those directly benefiting from the program funded $16.3 million in grants and other contributions and $10.3 million from charges for services.
60,000 50,000 40,000 30,000 20,000 10,000 In Thousands
$0 2009
2010
2011
2012
2013
business-t ype activities * Revenues
Expenses
140,000
120,000
The City's business type activities reported net revenues of $16.8 million for the year. All individual activities reported net revenue for the year with the exception of electric operations, lake operations, and economic development which reported net expenses of $1.5 million, $0.4 million, and $0.4 million respectively. Significant increase in net revenue was recognized in the water, wastewater, and sanitation operations due to delay in capital projects and management of operating expenses. The business-type activities’ increase in net position of $15 million represents a 23% increase from the prior year’s change in net position which is largely attributable to the increase in grant contributions and less transfers out.
100,000
80,000
60,000
40,000
20,000
In Thousands $0 2009
2010
2011
2012
2013
The results indicate the City, as a whole, increased in total net position of $40 million is a combination of increased revenue collections in taxes and grant contributions. Expenses as a whole reflected a relatively low nominal increase.
* This summary report excludes transfers. Transfers are used to support Government services. For full disclosure see our CAFR note section 3.F Interfund Balances and Activities.
9
Edmond’s Sales Tax supports city services
8.25
%
surrounding cities
8.50%
Mustang
8.50%
Yukon
8.375%
8.35%
Oklahoma City Midwest City
8.25%
Moore
8.00%
Norman
sales ta x breakdown The City levies a 3 ¾ cent sales tax on taxable sales within the City. It is recorded as follows:
One quarter cent recorded as revenue within the Fire Public Safety Limited Tax Fund to account for improvements to the fire department per voter approval.
Two cents recorded within the General Fund. One eighth cent recorded as revenue within the Park Sales Tax Fund to account for operations and facility improvement costs of the City’s park and recreation system. Three quarter 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 Projects & Financing Task Force.
One eighth cent recorded as revenue within the Police Public Safety Limited Tax Fund to account for improvements to the police department per voter approval. One half cent recorded as revenue within the 2012 Capital Improvement Tax Fund-Public Safety Center to account for building the Public Safety Center per voter approval.
cit y services The City provides a wide range of municipal services, including police and fire protection, the construction and maintenance of highways, streets, and other infrastructure. The City also provides electric, water, wastewater, drainage and solid waste services to its residents under the legal entity of the Edmond Public Works Authority (EPWA). The City also provides a multitude of recreational and cultural events throughout the year. The City’s Kickingbird Golf Course, Arcadia Lake and many City parks provides hours of entertainment to our citizens.
10
Where does the money come from? governmental revenue by source 3% 2% 11% Sales and Use Taxes Grants
18%
66%
Charges of Service Franchise & Hotel/Motel Taxes Other
Where does the money go? governmental activities uses 5%
3%
7% Public Safety Streets & Highways
11%
General Government Culture, Parks and Recreation
59% 15%
Interest on Long-Term Debt Health & Welfare
11
3.42 23 average response time minutes
12
cit y playgrounds
46.6 4.4 %
residents with college degrees or higher
%
unemployment rate
13
General Fund The General Fund is the primary operating fund for City services. It is used for all activities except those legally or administratively required to be accounted for in other funds.
$35,000,000 30,000,000 25,000,000 20,000,000 15,000,000 10,000,000
Sales and Use Taxes
5,000,000
All other Revenues
$0 2009
2010
2011
2012
2012
general fund revenues * 2013
2012
2011
2010
2009
Sales and Use Taxes
34,403,578
31,299,351
28,917,747
27,484,883
29,572,916
Charges for Services
5,850,591
5,646,433
2,341,305
5,489,487
4,956,056
Fines and Forfeitures
2,053,931
2,068,170
344,968
2,097,681
2,375,687
Franchise & Public Service Tax
2,199,488
2,106,551
2,062,607
1,885,284
1,995,831
Intergovernmental
2,299,771
2,394,576
5,725,602
1,670,754
1,412,039
Licenses and Permits
1,389,282
1,450,110
2,436,202
1,083,211
1,063,724
* * Hotel/Motel Taxes
-
391,664
1,082,107
345,208
364,232
Miscellaneous
296,144
233,175
91,822
204,481
174,388
Investment Income
54,923
77,904
262,851
68,734
130,675
48,547,708
45,667,934
43,265,211
40,329,723
42,045,548
general fund expenditures * 2013
2012
2011
2010
2009
General Government
5,002,157
4,551,403
4,537,796
3,872,823
4,693,039
Public Safety
2,340,481
2,173,006
2,344,616
2,042,573
2,015,189
Health and Welfare
1,889,896
1,891,825
1,708,104
1,974,819
1,549,305
Culture, Parks and Recreation
4,135,376
3,784,739
3,288,899
3,105,684
3,231,498
Streets and Highways
4,350,720
4,164,797
3,920,453
3,098,018
3,333,924
Capital Outlay
399,249
1,020,451
1,017,337
415,073
886,650
18,117,879
17,586,221
16,817,205
14,508,990
15,709,605
* These graphs do not include transfers. Chart reflects direct operating revenues and expenses. * * Beginning in 2013, hotel/motel taxes are being accounted for in the Convention and Visitor’s Bureau fund. See our CAFR for details.
14
General Fund
explanation of terms
general fund revenues Sales and Use Taxes Of the 3 ž cent sales tax on taxable sales within the City, 2 cents is recorded as revenue in the General Fund. Use tax is if you have purchased items for use in Oklahoma from retailers who do not collect Oklahoma sales tax, you owe Oklahoma use tax on those items. Use tax is paid by the buyer when the Oklahoma sales tax has not been collected by the seller. This includes purchases made from an out-of-state retailer whether by mail order, catalog, television shopping networks, radio, Internet, phone or in person. Charges for Services Includes all revenues collected on services provided through the General Fund, such as planning filing fees, cemetery revenues, right-of-way fees, Animal Welfare fees, 911 service fee, aquatic center admissions season passes, recreation program fees and other miscellaneous charges. Fines and Forfeitures Includes all court fines and fees, and building code violations.
Intergovernmental Activities of two or more governments including revenues such as alcoholic beverage tax, cigarette tax, county – property resale, grants, commercial vehicle tax, and gasoline excise tax. Licenses and Permits Includes all permits and licenses required by the City including engineering inspections fees, occupational licenses, contractor registration, food handling licenses, oil and gas fees, public safety revenues including plumbing, building, electrical, heat/air, furniture stocking, fixture stocking, fire permits, miscellaneous permits, contractor registration, re-inspection fees, temporary certificate of occupancy, building inspection fees, sign permits, and commercial plan review fees. Miscellaneous Items that are not covered by any of the aforementioned categories. Investment Income Revenue earned from our investment portfolio.
Franchise & Public Service Taxes Includes fees assessed for private use of public property.
general fund expenditures General Government Includes city council, municipal court, planning, vehicle service of Citylink buses, Downtown Community Center, and airport maintenance and repairs. Public Safety Expenditures within the funds that support the safety of our citizens, such as police, fire, emergency management, and animal welfare. Health and Welfare Includes code enforcement, family services, and social services.
Streets and Highways Street rehabilitation and resurfacing, and upkeep of the medians. Capital Outlay Expenditures for assets that are intended to be held or used for an extended period of time. Includes land, land improvements, building, building improvements, machinery, equipment, and furniture and fixtures. Also includes infrastructure such as streets, sidewalks, culverts, curbs, roads and bridges. It is tangible in nature and must be in excess of $5,000 per item.
Culture, Parks and Recreation Includes maintenance and administration of 26 parks/playgrounds, pool, sports fields, Festival Marketplace, Edmond Land Conservancy Inc., recreation programs, Senior Center, Gracelawn Cemetery, and Edmond Historical Preservation and Trust.
15
route 66
softball complex This first class softball facility is located at Post Road and Highway 66. This phase of the project consists of four softball fields, a playground, spectator seating, concession stand and restroom facilities. This will be the first of many uses for this 146 acre tract of land. 16
General Fund
unassigned fund balance
15
12
9
6
3
0%
2009
2010
2011
2012
2013
The ‘unassigned’ fund balance is an indication of the amount of available resources the City has at a point in time to fund emergencies, shortfalls or other unexpected needs. In this analysis only the General Fund information is reported. In our model, 10% is considered a minimum responsible level, while 30% is considered responsible. As you can see by the above chart, we have tightened up and were able to exceed that 10% responsible level. We continue to strive toward the 30% level. See our complete disclosed information in our CAFR, Basic Financial Statements.
17
city of edmond
information technology BUILDING
City of Edmond purchased a new building to house our Information Technology’s department. With the growth of Edmond, our IT department provides continuous connectivity between all departments and our citizens. 18
Long-Term Debt At fiscal year end, the City had $137.1 million in long-term debt outstanding which represents a $5 million or 4% increase from the prior year. $ in Thousands
governmental activities
business-t ype activities
Totals
2013
2012
2013
2012
2013
2012
Accrued absences
$2,993
$2,761
$573
$539
$3,566
$3,300
8%
Revenue bonds*
73,260
62,750
42,400
46,625
115,660
109,375
6%
17,891
19,011
17,891
19,011
-6%
$60,864
$66,175
$137,117
$131,686
4%
Note payable
$76,253
Total
$65,511
% of Change
revenue bonds payable: governmental activities * All bonds are secured by utility revenues and pledged sales tax
Series Sales Tax & Utility System Bonds
Original Issue Amount
2004 2005 2010 2012 2013
20,000 30,000 13,900 13,255 13,710
Original Date
7/1/2024 7/1/2026 7/1/2021 7/1/2023 7/1/2023
13,035 22,515 10,970 13,030 13,710
$ in Thousands
$73,260
6/1/2004 12/1/2006 12/30/2010 8/16/2012 5/14/2013
Final Maturity Total
revenue bonds payable: business-t ype activities * All bonds are secured by utility revenues
Utility System Refunding Bonds
Original Issue Amount
Original Date
Final Maturity Total
2003A $ 6,615 11/1/2003 1/1/2014 2003B 2,120 11/1/2003 1/1/2024 2004 14,700 6/1/2004 1/1/2024 2005 40,435 10/1/2005 7/1/2024 $ in Thousands
$775 1,370 10,240 30,015 $42,400
On August 16, 2012 the City issued $13.255 million series 2012 Sales Tax and Utility Revenue Bonds with an interest rate of 2.06 percent to advance refund $11,960,000 of outstanding 2003 Series Sales Tax and Utility Revenue Bonds with an average interest rate of 4.38 percent. The net proceeds of $12,477,000(after payment o f $213,609 of issuance cost and $1,250,168 to a construction account) plus additional $685,835 of 2012 Series fund monies were used to purchase U.S. Government securities. More information regarding the City’s debt can be found in section 3.E Long Term Debt in the CAFR located at edmondok.com/budget/reports.
19
Edmond's Top Employers Edmond Public Schools
Remy International 2
University of Central Oklahoma
Integris Health Edmond
City of Edmond
Pelco Products
Adfitech
Innovative Healthcare Systems
1
OU Medical Center Edmond
Cox Communications
Petra Industries
Ben E. Keith
'06
107
147
250*
430
189 2,191 350
250
Source: Edmond Economic Development Authority
642
The information above is provided by the Edmond Economic Development Authority. All companies listed in the Top Employers section are headquartered in the City of Edmond and must meet this criteria to be included in this report.
1,009
NOTE: Information for ten years ago is unavailable. The earliest figures available were used. 1 Formerly Edmond Medical Center. 2 Formerly Unit Parts. 3 * Ben E. Keith is located out of City of Edmond limits but was included in 2006 data, this company is still in business, we are only including those within the City limit.
'13
295
290
133 85
300
448 2,629
622
665
1,255
20
Healthy Growth in Education The City of Edmond had an increase in enrollment of 600+ students from FY12 to FY13.
23,089 school enrollment
21
Economic Outlook f y09 – 14 general fund's sales ta x | Actuals FY09
FY10
FY11
FY12
FY13
FY14
3.0
2.5
2.0
$ In Millions
1.5 JUL
AUG
SEP
OCT
NOV
DEC
JAN
FEB
This chart reflects the actual amount of sales tax the General Fund received for the last 5 fiscal years ending June 30, 2013. The sales tax revenues collected for 2014 thus far has shown a slight decrease compared to last year for the first 6 months actuals. However, the actual sales tax collections is approximately 10% above the projected budget FY13-14 amount. Edmond has experienced many years of a growing and vibrant economy but in the past several years there were variances in key sectors of the community. For example, housing has increased since its low 5 years ago. Also with the close of 2013, the market has significantly increased the number of new single family residential permits compared to 2012.
22
MAR
APR
MAY
JUN
Outstanding Achievement
The Government Finance Officers Association of the United States and Canada (GFOA) has given an Award for Outstanding Achievement in Popular Annual Financial Reporting to the City of Edmond, Oklahoma for its Popular Annual Financial Report for the fiscal year ended June 30, 2012. The Award for Outstanding Achievement in Popular Annual Financial Reporting is a prestigious national award recognizing conformance with the highest standards for preparation of state and local government popular reports. In order to receive an Award for Outstanding Achievement in Popular Annual Financial Reporting, a government unit must publish a Popular Annual Financial Report, whose contents conform to program standards of creativity, presentation, understandability and reader appeal. An Award for Outstanding Achievement in Popular Annual Financial Reporting is valid for a period of one year only. We believe our current report continues to conform to the Popular Annual Financial Reporting requirements, and we are submitting it to GFOA.
23
2013 citizen's report City of Edmond, Oklahoma Fiscal Year Ending June 30, 2013 7 North Broadway • Edmond, Oklahoma 73034 (405) 359 – 4521 • edmondok.com