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Tightening up...
2011 city of edmond, oklahoma citizen’s report Ending Fiscal Year June 30,2011
Tightening up... 2011 city of edmond, oklahoma citizen’s report
Ending Fiscal Year June 30,2011
Table of Contents
Director’s Letter 1
City Council and Ward Map 2
Statement of Net Assets 4
Change in Net Assets 7
Edmond’s Sales Tax 8
Edmond's Numbers 10
General Fund 12
Long-Term Debt 16
Resident's Survey Results 18
Electric Utility Rates 20
Edmond's Top Employers 22
Economic Outlook 24
TRUSTWORTHY SERVICE T H R O U G H C O N T I N U O U S I M P R OV E M E N T
Dear Citizens of Edmond, We are pleased to present our Citizen's Report (Popular Annual Financial Report) for the fiscal year ending June 30, 2011. The Citizen’s Report is a snapshot of our Comprehensive Annual Financial Report (CAFR), which is located on our website at www.edmondok.com/cafr The PAFR format is designed to be easy to understand for the non financial reader.
Ross VanderHamm Director of Financial Services ross.vanderhamm@edmondok.com (405) 359 – 4521
The City of Edmond made great strides in preparing the budget for the 2010 –2011 fiscal year, and through the City’s “tightening the belt” on expenditures, we have created a healthier financial statement to present to you. Several areas created a healthier financial picture for the City of Edmond. First, the City looked hard at the budget and tightened where we could without compromising the services provided to you. Secondly, our sales tax increased over the projected budget, which eases operation costs. We also had an increase in commercial permits which translates to more retail stores opening in the City. Those permits include many restaurants and grocery stores, an apartment complex, and a new Integris hospital. Sales tax will be generated from these retail stores in the future months and years. A third hospital, Mercy, is in the process of being built which will serve as a prototype of all Mercy’s hospitals across Oklahoma, Arkansas, Kansas and Missouri. City of Edmond was listed #1 on CNBC’s list of “Best Suburbs” and we continue to draw new commercial retailers to our City as well as new families to attend our great school system. Finally, our TotalCare Ambulance Program was implemented in FY10 and is in its second full year. Customers were allowed to sign up or opt out of the $3 fee per month which covers you and your permanent residents of your home ambulance coverage should the need arise. By funding these services through a special fee, we free up the General Fund tax dollars. This has helped reverse the trend of our dwindling reserves (called unassigned fund balance) in the General Fund. All these steps have been a positive, upbeat improvement in our finances. The details in this Citizen’s report summarize our City’s financial position based on the audited financial documents contained in the 2011 Comprehensive Annual Financial Report (CAFR). Although the CAFR is prepared in according with Accounting Principles Generally Accepted in the United States of America, 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). As you review the report, we invite you to share any questions, concerns, or comments you may have. The fully disclosed CAFR and PAFR may be found online at www.edmondok.com/budget/reports Respectfully,
Ross VanderHamm Director of Financial Services
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Planning for a healthy future... The City of Edmond is a full service city that emphasizes responsiveness, financial accountability and transparency. We operate 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 Manager provides centralized direction and leadership for the day-to-day administration of city services.
Charles Lamb Mayor October 2011–13 chukolamb@aol.com
■ Victoria Caldwell Council Member Ward 1 May 2011–15 victoria.caldwell@edmondok.com
■
Darrell Davis Council Member Ward 3 November 2011–May 2013 darrell.davis@edmondok.com
■
David Miller Council Member Ward 4 May 2009–13 dc-miller@att.net
Stephen Schaus City Treasurer May 2009–13
■
Elizabeth Waner Council Member Ward 2 May 2011–15 ebwaner@gmail.com
city of edmond ward map
15th
33rd
WARD 3
Memorial
3
Choctaw
WARD 1 Edmond
Henney
Danforth
Hiwassee
WARD 2
Anderson
ion
WARD 4
Westminister
x tens
Covell
Post
way E
I-35
Coffee Creek
Douglas
Bro ad
Sorghum Mill
Midwest
Air Depot
Sooner
Coltrane
Bryant
Boulevard
Kelly
Santa Fe
Western
Pennsylvania
Waterloo
Statement of Net Assets Net Assets indicate 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. The Governmental Activities Net Assets for fiscal year ending June 30, 2011, reflect a significant increase in the amount of unrestricted funds as opposed to last year. By tightening up the budget we were able to increase the amount of money in this Unrestricted Fund Balance. The full disclosed Statement of Net Assets can be located in our CAFR at www.edmondok.com/cafr
governmental activities
business-t ype activities
$ in Thousands
2010 Restated
Current assets
$ 89,598
$91,692
$83,218
$82,104
$172,816
$173,796
217,734
219,315
190,062
198,498
407,796
417,813
11,229
10,093
9,248
9,016
20,477
19,109
318,561
321,100
282,528
289,618
601,089
610,718
Capital assets,net Other non-current assets Total Assets
2011
2010 Restated
2011
Totals 2010 Restated
2011
Current liabilities
15,542
15,170
20,307
19,006
35,849
34,176
Non-current liabilities
70,589
67,803
67,460
66,088
138,049
133,891
Total Liabilities
86,131
82,973
87,767
85,094
173,898
168,067
Deferred Inflows
3,263
2,299
2,168
1,876
5,431
4,175
Net Assets Invested in capital assets, net of related debt 165,225 152,756 117,163 130,308
282,388
283,064
Enabling legislation
8,350
8,350
Statutory requirements
1,079
1,079
Restricted by:
External contracts
66,139
57,288
11,431
11,103
77,570
68,391
Unrestricted
(2,197)
16,355
63,999
61,237
61,802
77,592
$ 229,167
$235,828
$192,593
$202,648
$421,760
$438,476
Total net assets
4
Net Assets 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 ending June 30, 2011.
16.3M 61.2M
$
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
$
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 5
Water, the source of all good health... The City has been methodically rehabilitating all our water towers. I-35 water tower (the tallest one) was completed in 2009, while the Post Road water tower was completed in 2010. The 33rd Street ground storage tank was completely rehabilitated in 2011. The 33rd Street tower is on schedule for capital improvements in the FY13 budget. The storage capacity of Edmond’s six water towers and their companion ground storage tanks combined total approximately 12 million gallons, while the two clearwells located at the water plant provide approximately 4 million gallons storage capacity each.
Change in Net Assets governmental activities * Revenues
Expenses
The City’s governmental services increase in net assets of $6.7 million represents a 29% decrease from the prior year’s change in net assets and is primarily the result of decreased capital grants and contributions. In 2010, the grant money received was three times the amount the City received in 2011, due to Stimulus grants issued by the Federal Government.
80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 In Thousands
$0 2007
2008
2009
2010
2011
business-t ype activities * Revenues
Expenses
The business-type activities’ increase in net assets of $10.1 million represents a 36% increase from the prior year’s change in net assets which is largely attributable to the increase in charges for services. The City had a rate increase on both water and wastewater fees in 2010, creating additional revenues. The rate increase in part is funding a 50 year Water Master Plan.
120,000
100,000
80,000
60,000
40,000
20,000
In Thousands $0 2007
2008
2009
2010
2011
* Does not include transfers. This summary report excludes tranfers. Transfers are used to support Government services. For full disclosure see our CAFR note section 3.F Interfund Balances and Activities.
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Edmond’s Sales Tax supports city services
7.75
%
surrounding cities
8.50% 8.50% 8.375% 8.35% 8.00% 8.00%
Mustang Yukon Oklahoma City Midwest City Moore Norman
sales ta x breakdown
The City levies a 3 ¼ 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.
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.
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.
Beginning April 1, 2012, a ½ cent sales tax was voted on and approved to fund the new Public Safety Center. This additional sales tax will sunset after 5 years. This Public Safety Center will be designed to combine the Edmond Police Department with Central Communications and Emergency Management into a new 75,000 square foot building.
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Where does the money come from? governmental revenue by source 4% 2% 15% Sales and Use Taxes Grants
63% 16%
Charges of Service Franchise & Hotel/Motel Taxes Other
Where does the money go? governmental activities uses 4%
4%
8% Public Safety Streets & Highways
8%
General Government Culture, Parks and Recreation
60% 16%
Interest on Long-Term Debt Health & Welfare
9
4.08
average response time minutes
23
cit y playgrounds
50.1
%
4.2
residents with college degrees or higher
% unemployment rate
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.
general fund revenues * FY10
FY11 In Millions $0
5
10
15
20
25
30
5
10
15
20
25
30
Sales and Use Taxes Charges for Services Fines and Forfeitures Franchise & Public Service Tax Intergovernmental Licenses and Permits Hotel/Motel Taxes Miscellaneous Investment Income $0
general fund expenditures * FY10
FY11 In Millions $0
1
2
3
4
5
1
2
3
4
5
General Government Public Safety Health and Welfare Culture, Parks and Recreation Streets and Highways Capital Outlay
$0
*These graphs do not include transfers. Chart reflects direct operating revenues and expenses.
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General Fund explanation of terms general fund revenues Sales and Use Taxes Of the 3 Âź 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.
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.
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.
Hotel/Motel Taxes A 4% tax upon the gross receipts derived from all rent for every occupancy of a room in a hotel in the City.
Fines and Forfeitures Includes all court fines and fees, and building code violations.
Miscellaneous Items that are not covered by any of the aforementioned categories.
Franchise & Public Service Taxes Includes fees assessed for private use of public property.
Investment Income Revenue earned from our investment portfolio.
general fund expenditures General Government Includes city council, municipal court, planning, vehicle service of Citylink buses, Downtown Community Center, and airport maintenance and repairs.
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.
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. 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.
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Generating a healthier financial future Edmond’s new Integris Hospital which includes a Jim Thorpe Outpatient Physical Therapy Clinic will assist residents with their health needs. Not only did the construction of this hospital create revenues in the form of increased permit revenues, it will undoubtedly bring in more revenue to our hotels/motels and restaurants as visitors come from around the state to participate in health and wellness.
General Fund unassigned fund balance 12 10 8 6 4 2 0%
2007
2008
2009
2010
2011
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.
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Long-Term Debt At fiscal year end, the City had $140.8 million in long-term debt outstanding which represents a $7.5 million or 5.1% decrease from the prior year. $ in Thousands
governmental activities
business-t ype activities
2010
2011
Accrued absences
$2,670
$ 2,623
$ 508
Revenue bonds*
69,390
66,845
Note payable Total
$72,060
$69,468
2010
Totals
2011
2010
2011
$ 495
$3,178
$ 3,118
-1.89%
54,590
50,695
123,980
117,540
-5.19%
21,157
20,097
21,157
20,097
-5.01%
$76,255
$71,287
$148,315
$140,755
-5.10%
revenue bonds payable: governmental activities * All bonds are secured by utility revenues and pledged sales tax
Series Sales Tax & Utility System Bonds
Original Date
Final Maturity
2003 1/1/2003 7/1/2023 2004 6/1/2004 7/1/2024 2005 12/1/2006 7/1/2026 2010 12/30/2010 7/1/2021 $ in Thousands
Total
$13,810 14,795 24,905 13,335
$66,845
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
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
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Total
$ 2,225 1,555 11,485 35,430 $50,695
% of Change
943,558
$
economic gain!
In 2010, City Treasurer Steven Schaus identified the Sales Tax and Utility System Revenue Bond, Series 2001 for refunding. This bond series was originally issued on September 1, 2001 at an interest rate range of 3.50%, for 20 years. Its current outstanding balance is $13,075,000 with a remaining interest rate average of 4.59%. Bids were requested and a rate of 2.84% was accepted resulting in an economic gain of $943,558 for the City. For more information on the Revenue Bonds and the Refunding of the 2001 Series, see 3.E section of the Notes to Basic Financial Statements.
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A healthy choice for our resident consumers Over the past fiscal year, the City of Edmond saw a healthy increase in commercial building permits. A large portion of these were from the grocery retail sector. Uptown Grocery Co., Sunflower Farmers Market and The Meat House to name a few have decided to set up shop in Edmond providing our residents with a wider variety of shopping options as well as a healthier economic outlook.
Resident’s Survey Results Researchers contacted 400 Edmond residents from age 18 and older on Oct. 23-25 to participate in this survey. A vast majority of residents surveyed — 96 percent — reported being satisfied with their overall quality of life, and 97 percent of those who responded feel that Edmond is “A Great Place to Grow”.
96.0 2011 summary of results Overall quality of life in Edmond
96%
Quality of life in Edmond as a place to retire
86
Satisfaction with your neighborhood
96
Satisfaction with planning for future growth
71
Satisfaction with roads and highways
72
Satisfaction with Edmond Electric Service
82
Overall services provided by Edmond
92
Feeling of safety in Edmond
97
19
% overall satisfaction
Electric Utility Rates The monthly fees for utility rates include both the customer charge and the energy charge based on the time of year for the total dollar per kWh used. Refer to our CAFR stat table which provides a breakdown of the complete Rate Schedule for the City of Edmond.
customer charge Edmond Electric
$13
13 12.90 12.80 12.70 12.60 12.50
OG&E
$12.48
12.40 12.30 12.20 12.10 $12
20
.097
$.0968
.095 .093
Summer june – september Average Temperature: 78˚ F Average Humidity: 69%
.091 .089 .087 .085
$.084
.083 .081
$.0833
$.0806
.079 $.077
First 1400 kWh
Over 1400 kWh
$.084
$.084
.085
Shoulder may – october Average Temperature: 74˚ F Average Humidity: 69% “Shoulder” is a term used to identify the months on each side of the Summer and Winter rate periods.
.084 .083 .082 .081
$.0806
$.0806
.080 .079 $.078
First 600 kWh
.09 $.0806
.08
Winter november – april Average Temperature: 46˚ F Average Humidity: 68%
Over 600 kWh
$.084
.07 .06 .05
$.045
$.047
.04 .03 .02 .01 $0
First 600 kWh
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Over 600 kWh
Edmond's Top Employers Edmond Public Schools*
Petra Industries
University of Central Oklahoma
Unit Parts
City of Edmond
Cox Communications
Adfitech
Pelco Products
OU Medical Center Edmond
Innovative Healthcare Systems
* 16 Elementary, 5 Middle School, 3 High School
180
133
89
265 300
450 2526
497
660
1191
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.
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21,558 Healthy Growth in Education
The City of Edmond had an increase in enrollment of 200 students from FY10 to FY11.
school enrollment
Economic Outlook f y11 – 12 general fund's sales ta x FY11 Actuals
FY12 Actuals
3.0
2.5
2.0
1.5
1.0
$ In Millions 0.5 JUL
AUG
SEP
OCT
NOV
DEC
JAN
FEB
MAR
APR
This chart reflects the actual amount of sales tax received for the entire fiscal year ending June 30, 2011. The sales tax revenues for 2012 thus far has exceeded our actual from last year for the first 5 months of fiscal year 2012. December’s revenues fell below last year; however, the overall accumulative growth is 3.37% so far this year.
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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, 2010. 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.
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Tightening up...
2011 city of edmond, oklahoma citizen’s report Ending Fiscal Year June 30,2011
100 East First Street • Edmond, Oklahoma 73034 • (405) 359 –4521 • edmondok.com 28