COMPREHENSIVE ANNUAL FINANCIAL REPORT | 2017 · 2018. 3. 6. · CITY OF EDMOND, OKLAHOMA...

City of Edmond, Oklahoma • Fiscal Year Ending June 30, 2017

C O M P R E H E N S I V E A N N U A L F I N A N C I A L R E P O R T | 2 0 1 7

Hilton Garden Inn & Edmond Conference Center

CITY OF EDMOND, OKLAHOMA

COMPREHENSIVE ANNUAL FINANCIAL REPORT

AND ACCOMPANYING INDEPENDENT AUDITOR’S REPORT

FOR THE FISCAL YEAR ENDED

JUNE 30, 2017

Prepared by:

Financial Services Department

Warren Porter

Finance Director

CITY OF EDMOND, OKLAHOMA COMPREHENSIVE ANNUAL FINANCIAL REPORT

AND ACCOMPANYING INDEPENDENT AUDITOR’S REPORT For the fiscal year ended June 30, 2017

TABLE OF CONTENTS

i

Page INTRODUCTION SECTION:

Letter of Transmittal 1-10

List of Principal Officials 11

City Governmental Organization Chart 12

Certificate of Achievement for Excellence in Financial Reporting 13

FINANCIAL SECTION:

INDEPENDENT AUDITOR’S REPORT 15-16 MANAGEMENT DISCUSSION AND ANALYSIS 17-31

BASIC FINANCIAL STATEMENTS:

Statement of Net Position 33

Statement of Activities 34

Balance Sheet – Governmental Funds 35-36 Statement of Revenues, Expenditures and Changes In Fund Balance – Governmental Funds 37-38 Statement of Net Position – Proprietary Funds 39 Statement of Revenues, Expenses and Changes In Fund Net Position– Proprietary Funds 40 Statement of Cash Flows – Proprietary Funds 41 Statement of Fiduciary Net Position – Fiduciary Funds 42 Statement of Changes in Fiduciary Net Position – Fiduciary Funds 43

Notes to Basic Financial Statements 45-92



TABLE OF CONTENTS

ii

Page

REQUIRED SUPPLEMENTARY INFORMATION: Budgetary Comparison Schedule –(Non-GAAP Budgetary Basis) - General Fund 93-95 Budgetary Comparison Schedule- (Non-GAAP Budgetary Basis) – Major Special Revenue Funds 96-97

Notes to Budgetary Comparison Schedules 98-99

Schedule of Share of Net Pension Liability – Police Pension & Schedule of City Contributions – Police Pension & Retirement System 100 Schedule of Share of Net Pension Liability – Firefighter’s System & Schedule of City Contributions – Firefighter’s Pension & Retirement 101 Single-Employer Defined Benefit Schedule of Changes in Net Pension Liability and Related Ratios 102 Pension Fund Schedule of City’s Contributions-Last Ten Years 103 Pension Fund Schedule of Investment Returns 104 OPEB Plan Funding Schedule 105

OTHER SUPPLEMENTARY INFORMATION: GENERAL FUND COMBINING SCHEDULES: General Fund Account Descriptions 107 Combining Balance Sheet – General Fund Accounts 108 Combining Schedule of Revenues, Expenditures and Changes in Fund Balance – General Fund Accounts 109 Schedule of Revenues, Expenditures and Changes in Fund Balance Budget and Actual (Non-GAAP Budgetary Basis) – General Fund Accounts 110-111 NONMAJOR GOVERNMENTAL FUNDS: Fund Descriptions 112-113 Combining Balance Sheet – Nonmajor Governmental Funds 114-115 Combining Statement of Revenues, Expenditures and Changes in Fund Balance – Nonmajor Governmental Funds 116-117



TABLE OF CONTENTS

iii

Page Schedule of Revenues, Expenditures and Changes in Fund Balance Budget and Actual (Non-GAAP Budgetary Basis) - Nonmajor Governmental Funds 118-124 Schedule of Revenues, Expenditures and Changes in Fund Balance Budget and Actual (Non-GAAP Budgetary Basis) - Major Governmental Capital Project Funds 125 NONMAJOR ENTERPRISE FUNDS: Fund Descriptions 126 Combining Statement of Net Position – Nonmajor Enterprise Funds 127 Combining Statement of Revenues, Expenses and Changes In Fund Net Position – Nonmajor Enterprise Funds 128 Combining Statement of Cash Flows – Nonmajor Enterprise Funds 129 INTERNAL SERVICE FUNDS: Fund Descriptions 130 Combining Statement of Net Position - Internal Service Funds 131 Combining Statement of Revenues, Expenses and Changes in Fund Net Position – Internal Service Funds 132 Combining Statement of Cash Flows – Internal Service Funds 133

AGENCY FUNDS: Fund Descriptions 134 Combining Statement of Fiduciary Assets and Liabilities - Agency Funds 135 Combining Statement of Changes in Assets and Liabilities - Agency Funds 135 REVENUE BOND/NOTE COVENANT SCHEDULES: Schedule Descriptions 136 Schedule of Revenue Bond/Note Debt Service Coverage 137 Schedule of Reserve Account Balances 138



TABLE OF CONTENTS

iv

Page DISCRETELY PRESENTED COMPONENT UNIT: Fund Description 139 Balance Sheet – Discretely Presented Component Unit 140 Statement of Revenues, Expenditures, and Changes in Fund Balance – Discretely Presented Component Unit 141 STATISTICAL SECTION: Table

Statistical Section Narrative 143 Net Position by Component - Last Ten Fiscal Years 1 144

Changes in Net Position - Last Ten Fiscal Years 2 145-146

Fund Balances, Governmental Funds – Last Ten Fiscal Years 3 147

Changes in Fund Balances, Governmental Funds – Last Ten Fiscal Years 4 148

Governmental Activities Tax Revenues by Source – Last Ten Fiscal Years 5 149

Electricity Revenue by Customer Type - Last Ten Fiscal Years 6 150

Top Ten Electric Customers – Last Ten Years 7 151 Electricity Rate Structure – Last Ten Fiscal Years 8 152-156 Historical Utility Customers – Last Ten Fiscal Years 9 157 Largest Water and Wastewater Customers 10 158 Sales Tax Rates of Direct and Overlapping Governments – Last Ten

Fiscal Years 11 159

Taxable Sales by Category - Last Ten Fiscal Years 12 160 Monthly Sales Tax Revenue Comparison – Last Three Fiscal Years 13 161 Historical Sales Tax Revenue – Last Ten Fiscal Years 14 162

Ratio for Outstanding Debt by Type – Last Ten Fiscal Years 15 163 Ratio of Net General Bonded Debt to Assessed Value and Net Bonded Debt per Capita – Last Ten Fiscal Years 16 164



TABLE OF CONTENTS

v

STATISTICAL SECTION: Table Page

Computation of Direct and Overlapping Debt 17 165 Legal Debt Margin Information – Last Ten Fiscal Years 18 166 The Edmond Public Works Authority Utility Systems Division Pledged Revenue Coverage – Last Ten Fiscal Years 19 167 Demographic and Economic Statistics – Last Ten Calendar Years 20 168 Principal Employers – Current and Ten Years Ago 21 169 Full-Time Equivalent Budgeted City Government Employees by Function/Program – Last Ten Fiscal Years 22 170 Capital Asset Statistics by Function/Program – Last Ten Fiscal Years 23 171 Operation Indicators by Function/Program – Last Ten Fiscal Years 24 172 Construction Permits – Last Ten Fiscal Years 25 173

CITY OF EDMOND, OKLAHOMA PRINCIPAL OFFICIALS AND FINANCE COMMITTEE MEMBERS JUNE 30, 2017 ELECTED OFFICIALS

Charles Lamb Mayor Victoria Caldwell Councilmember-Ward 1 Elizabeth Waner Councilmember-Ward 2 Darrell Davis Councilmember-Ward 3 Nick Massey Councilmember-Ward 4

FINANCE COMMITTEE MEMBERS

Stephen Schaus Chairperson Nick Massey Member Charles Lamb Member

ADMINISTRATION

Larry Stevens City Manager Stephen Murdock City Attorney Stephen Schaus City Treasurer Steve Commons Assistant City Manger -Administration Jim Smith Assistant City Manager

-Operations Kory Atcuson City Clerk Chris Goodwin Fire Chief J.D. Younger Police Chief Lisa Goodpasture Human Resource Director Diane L. Slayton Municipal Judge

ACCOUNTING AND TREASURER STAFF

Warren Porter Finance Director William Weaver Assistant Finance Director Sheila Briesch Accounting Manager Terri McKay Payroll Manager Brenda Mayer Purchasing Manager

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Citizens

City Attorney

Authorities & Trusts

City Manager

Boards & Commissions

Municipal Judges

Asst. to the City Manager

ECVB

Police

Marketing/PR

Fire

Public SafetyCommunications &Emergency Mgmt

Municipal Court

ACM Operations

ACM Administration

Building & FireCode Services

Engineering

Water Resources

Planning/Zoning

Electric

Public Works

Solid Waste

Facility Maint.

Field Services

Vehicle Maint.

Public Works Admin

DCC

Street

CDBG

Animal Welfare

Parks and Rec

Community Image

Human Resources

IT

Financial Services

Golf

Arcadia Lake

Senior Center

Park Maint.

Recreation

Cemetery

Pelican Bay

Festival Mkt Place

Training

Insurance/Benefits

Urban Forestry

Code Enforcement

Oil & Gas

Budget/Acct.

Payroll

Purchasing

Traffic Control

Water/WW Line Maint

Water Wells

Water Plant

Wastewater Treatment

Risk Management

Utility CustomerService

Customer Service

Utility FieldServices

Meter Services

Treasury

AdministrativeServices

Mayor &City Council

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INDEPENDENT AUDITOR’S REPORT

INDEPENDENT AUDITOR’S REPORT

The Honorable Mayor and the Members of the City Council of the City of Edmond, Oklahoma

Report on the Financial Statements

We have audited the accompanying financial statements of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the City of Edmond, Oklahoma, (the “City”) as of and for the year ended June 30, 2017, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Governmental Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Opinions

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the City, as of June 30, 2017, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

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

Member of AICPA and OSCPA

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Other Matters

Required Supplementary Information

Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, budgetary comparison information, and the pension plan and other post-employment benefit schedules, as listed in the table of contents, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Other Information

Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The introductory section, other supplementary information, and statistical section are presented for purposes of additional analysis and are not a required part of the basic financial statements.

The other supplementary information, as listed in the table of contents, is the responsibility of management and was derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the other supplementary information is fairly stated, in all material respects, in relation to the basic financial statements as a whole.

The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them.

Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards, we have also issued our report dated January 19, 2018, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.

January 19, 2018

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MANAGEMENT’S DISCUSSION AND ANALYSIS

CITY OF EDMOND, OKLAHOMA MANAGEMENT’S DISCUSSION & ANALYSIS

June 30, 2017 Our discussion and analysis of the City of Edmond’s financial performance provides an overview of the City’s financial activities for the fiscal year ended June 30, 2017. Please read it in conjunction with the City’s financial statements, which follow this section. FINANCIAL HIGHLIGHTS

For the fiscal year ended June 30, 2017, the City’s total net position increased by $54.7 million.

The City recorded derivative instruments of $1,479,749 and $597,883 in the governmental and business-type activities, respectively. The derivative instruments are offset by deferred inflows.

The City also recorded combined net pension liabilities of $71,120,277 for the year related to the Oklahoma Police Pension and Retirement System, the Oklahoma Fire Fighters Pension and Retirement System and the City’s Employee Pension and Retirement System.

During the year, the City’s expenses for governmental activities were $87.4 million and were funded by program revenues of $28.3 million and further funded with taxes and other general revenues and transfers that totaled $77.0 million.

In the City’s business-type activities, such as utilities, lake, golf course, and transportation operations; program revenues exceeded expenses by $39.1 million.

Sales and use taxes increased by $.4 million from the prior fiscal year. This translates into an increase in taxable sales of $11 million from the prior year.

At June 30, 2017, the General Fund reported an unassigned fund balance of $5.4 million. For budgetary reporting purposes, the General Fund and major special revenue funds reported

actual revenues above estimates of $3.7 million or 5.0%, while expenditures were under the final appropriations by $1.6 million or 2.25%. OVERVIEW OF THE FINANCIAL STATEMENTS The financial statements presented herein include all of the activities of the City of Edmond (the “City”) and its component units using the integrated approach as prescribed by GASB Statements No. 14, 34, 39, and 61. Included in this report are governmental-wide statements for each of two categories of activities – governmental and business-type, along with two discretely-presented component units. The government wide financial statements present the complete financial picture of the City from the economic resources measurement focus using the accrual basis of accounting. They present governmental activities and business type activities separately and combined. These statements include all assets of the City (including infrastructure capital assets) and deferred outflows as well as all liabilities (including all long-term debt) and deferred inflows. Reporting the City as a Whole The Statement of Net Position and the Statement of Activities One of the most frequently asked questions about the City’s finances is, “Has the City’s overall financial condition improved, declined or remained steady over the past year?” The Statement of Net Position and the Statement of Activities report information about the City as a whole and about its activities in a way that helps answer this question. These statements include all assets, deferred outflows, liabilities, and deferred inflows using the accrual basis of accounting, which is similar to the accounting used by the private-sector companies. All of the current period’s revenues and expenses are taken into account regardless of when cash is received or paid.

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June 30, 2017 These two government-wide statements report the City’s net position and changes in them from the prior year. You can think of the City’s net position – the difference between assets, deferred outflows, liabilities, and deferred inflows – as one way to measure the City’s financial condition. Over time, increases or decreases in the City’s net position are one indicator of whether its financial health is improving, deteriorating, or remaining steady. However, you must consider other nonfinancial factors, such as changes in the City’s sales tax base, the condition of the City’s roads, and the quality of services to assess the overall health and performance of the City. As mentioned above, in the Statement of Net Position and the Statement of Activities, we divide the City into three kinds of activities:

Governmental activities -- Most of the City’s basic services are reported here, including the police, fire, general administration, streets, and parks. Sales taxes, franchise fees, fines, and state and federal grants finance most of these activities.

Business-type activities -- The City charges a fee to customers to help cover all or most of the cost of certain services it provides. The City’s electric, water, wastewater, sanitation, lake, drainage, and golf course activities are reported here.

Discretely-presented component units – These account for activities of the City’s reporting entity that do not meet the criteria for blending, specifically the Historic Preservation Trust and the Edmond Economic Development Authority.

Reporting the City’s Most Significant Funds Fund Financial Statements The fund financial statements provide detailed information about the most significant funds – not the City as a whole. Some funds are required to be established by State law and by bond covenants. However, management establishes many other funds to help it control and manage money for particular purposes or to show that it is meeting legal responsibilities for using certain taxes, grants and other money. The City’s three fund categories-governmental, and proprietary, and fiduciary use different accounting approaches. Governmental funds - Most of the City’s basic services are reported in governmental funds, which focus on how money flows into and out of those funds and the balances left at year-end that are available for spending. These funds are reported using an accounting method called modified accrual accounting, which measures cash and all other financial assets that can readily be converted to cash. The governmental fund statements provide a detailed short-term view of the City’s general government operations and the basic service it provides. Governmental fund information helps determine whether there are more or fewer financial resources that can be spent in the near future to finance the City’s programs. We illustrate the relationship (or differences) between governmental activities (reported in the Statement of Net Position and the Statement of Activities) and the governmental funds with reconciliation at the bottom of the fund financial statements. Proprietary funds - When the City charges customers for the services it provides – whether to outside customers or to other units of the City – these services are generally reported in proprietary funds. Proprietary funds are reported in the same way that all activities are reported in the Statement of Net Position, the Statement of Revenues, Expenses and Changes in Fund Net Position and Statement of Cash

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June 30, 2017 Flows. In fact, the City’s enterprise funds are the essentially the same as the business-type activities we report in the government-wide statements but provide more detail and additional information, such as cash flows. Fiduciary funds - When the City is responsible for assets that – because of a trust arrangement or other fiduciary requirement – can be used only for trust beneficiaries or others parties, these activities are reported as fiduciary funds, such as the Employee Retirement Trust Fund. The City is responsible for ensuring that the assets reported in these funds are used for their intended purpose. All of the City’s fiduciary activities are reported in a separate statement of fiduciary net position and a statement of changes in fiduciary net position. We exclude these activities from the City’s government-wide financial statements because the City cannot use these assets to finance operations. A FINANCIAL ANALYSIS OF THE CITY AS A WHOLE Net Position As noted earlier, net position may serve over time as a useful indicator of a government’s financial position. In the case of the City, assets and deferred outflows exceeded liabilities and deferred inflows by $655,271,395 at the close of the most recent fiscal year.

TABLE 1

NET POSITION (In Thousands)

% Inc.

(Dec.)

% Inc.

(Dec.)

% Inc.

(Dec.)

2017 2016 2017 2016 2017 2016

Current assets 93,933$ 95,399$ ‐2% 204,841$ 141,103$ 45% 298,774$ 236,502$ 26%

Capital assets, net 328,059 313,579 5% 247,705 232,725 6% 575,764 546,304 5%

Other non‐current assets 9,425 9,801 ‐4% 6,440 4,068 58% 15,865 13,869 14%

Total assets 431,417 418,779 3% 458,986 377,896 21% 890,403 796,675 12%

Deferred Outflows 22,967 9,670 138% 3,964 2,612 52% 26,931 12,282 119%

Current liabilities 27,800 27,430 1% 20,646 20,384 1% 48,446 47,814 1%

Non‐current liabilities 119,502 108,194 10% 91,274 45,830 99% 210,776 154,024 37%

Total liabilities 147,302 135,624 9% 111,920 66,214 69% 259,222 201,838 28%

Deferred Inflows 2,161 5,808 ‐63% 680 706 ‐4% 2,841 6,514 ‐56%

Net position

Net investment in

capital assets 297,762 255,087 17% 200,608 186,486 8% 498,370 441,573 13%

Restricted 52,415 62,143 ‐16% 12,555 11,122 13% 64,970 73,265 ‐11%

Unrestricted (deficit) (45,256) (30,213) 50% 137,187 115,980 18% 91,931 85,767 7%

Total net position 304,921$ 287,017$ 6% 350,350$ 313,588$ 12% 655,271$ 600,605$ 9%

Governmental Activities Business‐Type Activities Total

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June 30, 2017

$221,573 $241,069

$229,167 $235,828 $248,599

$273,750 $294,918

$271,156 $287,017

$304,921

$184,814 $201,953

$192,594 $202,648

$214,648 $229,461

$244,283

$273,388 $313,588

$350,350

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

$400,000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Net Position(in Thousands)

Governmental Business Type

The largest portion of the City’s net position reflects its net investment in capital assets (e.g., land, buildings, machinery, and equipment); less any related debt used to acquire those assets that is still outstanding. For 2017, this investment in capital assets, net of related debt amounted to $498,369,750. The City uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City’s investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. A major portion of the City’s net position, $64,970,492, also represents resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted net position, $91,931,153, may be used to meet the government’s ongoing obligations to citizens and creditors. At the end of the current fiscal year, the City is able to report positive balances in all categories of net position, both for the government as a whole, as well as for its separate governmental and business-type activities. Changes in Net Position For the year ended June 30, 2017, net position of the primary government changed as follows:

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June 30, 2017

TABLE 2

CHANGES IN NET POSITION (In Thousands)

% Inc.

(Dec.)

% Inc.

(Dec.)

% Inc.

(Dec.)

2017 2016 2017 2016 2017 2016

Revenues

Program revenue:

Charges for service 11,469$ 9,504$ 21% 155,607$ 144,829$ 7% 167,076$ 154,333$ 8%

Operating grants and contributions 6,552 6,040 8% 1,168 309 278% 7,720 6,349 22%

Capital grants and contributions 10,310 10,190 1% 4,641 6,493 ‐29% 14,951 16,683 ‐10%

General Revenue:

Taxes 70,805 70,528 0% ‐ ‐ 0% 70,805 70,528 0%

Intergovernmental revenue 1,118 1,061 5% ‐ ‐ 0% 1,118 1,061 5%

Investment income 626 933 ‐33% 929 917 1% 1,555 1,850 ‐16%

Miscellaneous 1,098 1,016 8% ‐ ‐ 0% 1,098 1,016 8%

Total Revenues 101,978 99,272 3% 162,345 152,548 6% 264,323 251,820 5%

Expenses

General Government 8,006 9,167 ‐13% ‐ ‐ 8,006 9,167 ‐13%

Public Safety 52,799 47,309 12% ‐ ‐ 52,799 47,309 12%

Streets & highways 15,148 15,152 0% ‐ ‐ 15,148 15,152 0%

Culture, parks and recreation 8,081 7,068 14% ‐ ‐ 8,081 7,068 14%

Health and welfare 1,682 1,639 3% ‐ ‐ 1,682 1,639 3%

Economic development ‐ 577 ‐100% ‐ ‐ ‐ 577 ‐100%

Interest on long‐term debt 1,669 1,829 ‐9% ‐ ‐ 1,669 1,829 ‐9%

Electric ‐ ‐ 80,292 75,313 7% 80,292 75,313 7%

Water ‐ ‐ 18,724 17,495 7% 18,724 17,495 7%

Wastewater ‐ ‐ 9,665 7,224 34% 9,665 7,224 34%

Sanitation ‐ ‐ 7,158 7,052 2% 7,158 7,052 2%

Lake ‐ ‐ 1,454 1,365 7% 1,454 1,365 7%

Drainage ‐ ‐ 1,034 903 15% 1,034 903 15%

Golf Course ‐ ‐ 2,201 2,319 ‐5% 2,201 2,319 ‐5%

Cooperative purchasing service ‐ ‐ 51 50 2% 51 50 2%

Transportation operations ‐ ‐ 1,693 1,297 31% 1,693 1,297 31%

Total Expenses 87,385 82,741 6% 122,272 113,018 8% 209,657 195,759 7%

Excess (deficiency) before transfers 14,593 16,531 ‐12% 40,073 39,530 1% 54,666 56,061 ‐2%

Transfers 3,311 (670) ‐594% (3,311) 670 ‐594% ‐ ‐ ‐

Increase in net position 17,904 15,861 13% 36,762 40,200 ‐9% 54,666 56,061 ‐2%

Beginning net position 287,017 271,156 313,588 273,388 600,605 544,544

Ending net position 304,921$ 287,017$ 350,350$ 313,588$ 655,271$ 600,605$


The City’s governmental activities’ increase in net position of $17.9 million represents an 13% increase from the prior year’s change in net position and is primarily the result of increased revenues in the charges for services category and an increase in the transfer in. The business-type activities’ increase in net position of $36.8 million represents a 9% decrease from the prior year’s change in net position which is largely attributable to the increase in expenses and the increase in the transfer out. The results indicate the City, as a whole, experienced an increase in total net position of $54.7 million which was a combination of overall expenses staying relatively in line with revenue collections. Governmental Activities To aid in the understanding of the Statement of Activities some additional explanation is given. Of particular interest is the format that is significantly different than a typical Statement of Revenues, Expenses, and Changes in Fund Balance. You will notice that expenses are listed in the first column with revenues from that particular program reported to the right. The result is a Net (Expense)/Revenue. The reason for this kind of format is to highlight the relative financial burden of each of the functions on the City’s taxpayers. It also identifies how much each function draws from the general revenues or if it is self-financing through fees and grants or contributions. All other governmental revenues are reported as general. It is important to note all taxes are classified as general revenue even if restricted for a specific purpose.

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

For the year ended June 30, 2017, total expenses for governmental activities amounted to $87.4 million. Of these total expenses, taxes and other general revenues funded $76.9 million, while those directly benefiting from the program funded $16.9 million in grants and other contributions and $11.5 million from charges for services. Besides the aforementioned increase in sales tax other notable changes for governmental activities include an increase in expenses related to public safety operations.

57%

11%

9%

18%

3% 2%

Governmental Activities Uses

Public Safety

General Government

Culture, parks andrecreation

Streets and Highways

Health and Welfare

Interest on Long‐Term Debt

67%3%

11%

16%

3%

Governmental Activities Sources

Sales Tax

Other Taxes

Charges for Service

Grants

Other

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June 30, 2017 Governmental-type Activities

TABLE 3

% Inc.

(Dec.)

% Inc.

(Dec.)

2017 2016 2017 2016

General Government 8,006$ 9,167$ ‐13% 1,864$ (1,456)$ ‐228%

Public Safety 52,799 47,309 12% (46,469) (41,308) 12%

Streets & Highways 15,148 15,152 0% (4,142) (4,214) ‐2%

Culture, parks and recreation 8,081 7,068 14% (7,816) (6,854) 14%

Health and Welfare 1,682 1,639 3% (822) (769) 7%

Economic Development ‐ 577 ‐100% ‐ (577) ‐100%

Interest on long‐term debt 1,669 1,829 ‐9% (1,669) (1,829) ‐9%

TOTAL 87,385$ 82,741$ 6% (59,054)$ (57,007)$ 4%

Total Expense of Services

Net Revenue (Expense)

of Services

Net Revenue (Expense) of Governmental Activities

(In Thousands)

Business-type Activities

TABLE 4

Net Revenue (Expense) of Business‐Type Activities

(In Thousands)

% Inc.

(Dec.)

% Inc.

(Dec.)

2017 2016 2017 2016

Electric 80,292$ 75,313$ 7% 16,706$ 16,936$ ‐1%

Water 18,724 17,495 7% 12,775 10,737 19%

Wastewater 9,665 7,224 34% 8,049 9,011 ‐11%

Sanitation 7,158 7,052 2% 2,042 2,076 ‐2%

Lake 1,454 1,365 7% (345) (286) 21%

Drainage 1,034 903 15% 757 973 ‐22%

Golf 2,201 2,319 ‐5% (213) (284) ‐25%

Cooperative purchasing services 51 50 2% 40 14 186%

Transportation 1,693 1,297 31% (667) (564) 18%

TOTAL 122,272$ 113,018$ 8% 39,144$ 38,613$ 1%

Total Expense of Services

Net Revenue (Expense) of

Services

The City’s business-type activities include utility services, lake and golf course operations, the cooperative purchasing program and operations of the transit system. In reviewing the business-type activities net (expense)/revenue, the following highlights should be noted:

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

23


June 30, 2017

All individual activities reported net revenue for the year ended June 30, 2017 with the exception of lake, golf and transportation operations.

Significant increases in net revenue were recognized in the water operation due to increased rates water, a delay in capital projects, and management of operating expenses.

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

Governmental Funds:

Fund Balance:

Restricted 55,757,460$

Committed 3,444

Assigned 8,371,937

Total Fund Balance Constraints 64,132,841$

Enterprise Funds:

Net Position Restrictions:

Restricted for debt service 12,555,515$

Restricted for scholarships 1,301

Total Enterprise Fund Net Position Restrictions 12,556,816$

Other fund highlights include:

For the year ended June 30, 2017, the General Fund’s total fund balance increased by $2,389,569 due to increased charges for services and fines and forfeitures.

The 2000 Capital Improvement Tax Fund’s total fund balance decreased by $8,057,157 due to decreased transfers in from other funds and use of restricted funds.

The Fire Public Safety Limited Tax Fund’s total fund balance increased by $1,006,830 due to an decrease in expenditures for operations and a slight increase in transfers from other funds.

The 2012 Public Safety Limited Tax Fund’s total fund balance increased by $4,220,230 due to a decrease in expenditures and transfers from the General Fund.

All enterprise funds reported an increase in net position, after transfers, for the year ended June 30, 2017 with the exception of lake, golf and City Link. In each of the funds mentioned above, charges for services did cover operational costs with the exception of Lake, Golf and City Link (Transportation) Operations.

The employee pension trust fund posted an increase in net position of the fund of $7.7 million. The increase is due to an increase in the investment yields in the market.

24


June 30, 2017 General Fund Budgetary Highlights

Over the course of the year, the City Council revised the General Fund budget various times. The revised budget included an increase in overall revenue projections of 21% or $11,636,249 due to transfers in. Actual revenues and transfers were above final estimates by $3,213,008 or 4.75% which was a result of an increase in transfers in, while expenditures were under final appropriations by $1,576,984 or 2.25% which is mainly due to reduced operating expenses in general government and parks. CAPITAL ASSET AND DEBT ADMINISTRATION Capital Assets At the end of June 30, 2017, the City had $576 million invested in capital assets, net of depreciation, including police and fire equipment, buildings, park facilities, water lines and sewer lines. (See table below). This represents a net increase of $29.5 million or 5.39% over last year.

TABLE 5

Primary Government Capital Assets

(In Thousands)

(Net of accumulated depreciation)

2017 2016 2017 2016 2017 2016

Land 17,713$ 15,208$ 2,571$ 2,351$ 20,284$ 17,559$

Buildings 86,912 89,469 20,426 21,366 107,338 110,835

Imp. Other than buildings 16,932 12,642 9,895 10,116 26,827 22,758

Equipment 23,928 23,895 3,528 3,679 27,456 27,574

Intangible water rights ‐ ‐ 13,550 14,194 13,550 14,194

Utility property ‐ ‐ 162,974 162,256 162,974 162,256

Infrastructure 147,140 147,510 ‐ ‐ 147,140 147,510

Construction in progress 35,434 24,855 34,761 18,762 70,195 43,617

Totals 328,059$ 313,579$ 247,705$ 232,724$ 575,764$ 546,303$


This year’s more significant capital asset additions included:

$10.0 million in Street improvement projects $3.2 million in Park improvements $15.9 million in Water Utility improvements $11.3 million in Wastewater Utility improvements $2.3 million in Electric Utility improvements

See Note 3.D. to the financial statements for more detail information on the City’s capital assets and changes therein.

25


June 30, 2017 Long- Term Debt At year-end, the City had $133 million in long-term debt outstanding which represents a $29.5 million or 29% increase from the prior year. The City’s changes in long-term debt by type of debt are as follows:

Primary Government Long‐Term Debt

(In Thousands)

Total

Percentage

Change

2017 2016 2017 2016 2017 2016

Accrued absences 3,754$ 3,610$ 753$ 719$ 4,507$ 4,329$ 4%

Revenue bonds 49,259 55,788 66,102 28,717 115,361 84,505 37%

Notes payable ‐ ‐ 13,688 14,999 13,688 14,999 ‐9%

Capital lease ‐ ‐ 22 39 22 39 ‐44%

Totals 53,013$ 59,398$ 80,565$ 44,474$ 133,578$ 103,872$ 29%

Governmental Activities

Business‐Type

Activities Total

See Note 3.E. to the financial statements for more detail information on the City’s long-term debt and changes therein. ECONOMIC FACTORS AND NEXT YEAR’S BUDGET AND RATES State of Oklahoma – Conditions/Projections Oklahoma State Treasurer Ken Miller’s October 2017 Economic Report noted the following:

Gross revenue totals $11.2 billion from the past 12 months. That is $377.8 million, or 3.5%, more than collections from the previous 12 months.

Gross income taxes generated $4 billion for the November 2016-October 2017 period, reflecting a decrease of $16.5 million, or 0.4%, from the November 2015-October 2016 period.

Individual income tax collections total $3.6 billion, up by $48.5 million, or 1.4%, from the prior 12 months. Corporate collections are $397.6 million for the period, a decrease of $65 million, or 14%, over the previous period.

Sales taxes for the period generated $4.4 billion, an increase of $135 million, or 3.2%, from the prior year.

Oil and gas gross production tax collections brought in $501.7 million during the past 12 months, up $157 million, or 45.6%, from the previous 12-month period.

Motor vehicle collections total $762 million for the period. This is an increase of $15.7 million, or 2.1%, from the trailing period.

Other sources generated $1.7 billion, up by $86.6 million, or 5.5%, from the previous 12 months.

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

26


June 30, 2017 At $980.2 million, October collections are up by 10.6%, or $94.1 million, compared to receipts from October 2016. The last time monthly gross receipts grew by more than 10% was in April 2013. Total gross receipts from the past 12 months also painted a positive picture with all major revenue streams except gross income tax showing increases over the prior 12 months. The tax commission attributes $25.7 million in October to new revenue resulting from legislation enacted during the last regular session. The largest amount, $11.7 million, is tied to a 1.25% state sales tax on motor vehicles. A $5 fee on motor vehicle registration increased collections by $1.9 million for the month. New revenue gained during the month by increasing the 1% horizontal drilling gross production tax rate to 4% is reported as $7.8 million by the tax commission. Elimination and suspension of gross production rebate payments added $3 million to gross collections during the month. Ending a discount for businesses that remit sales tax added $1.2 million for the month, and a new fee assessed on professional sports tickets contributed over $71,000. Since August, law changes from last session have yielded more than $66.2 million in new gross revenue through October 2017. After dropping below growth neutral in July, the Oklahoma Business Conditions Index has topped growth neutral for three consecutive months. The October index was set at 63, up from 62.7 in September. Numbers above 50 indicate anticipated positive growth in the next three to six months. September Gross Receipts to the Treasury totaled $1.01 billion, while the General Revenue Fund (GRF), as reported by the Office of Management and Enterprise Services, received $505.1 million, or 49.9%, of the total. The GRF received between 32.7% and 54.1% of monthly gross receipts during the past 12 months. From September 2017 gross receipts, the GRF received:

Individual income tax: 65.4% Corporate income tax: 66.0% Sales tax: 44.9% Gross production – Gas: 75.7% Gross production – Oil: 11.7% Motor vehicle tax: 25.8% Other Sources: 35.9%

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

27


June 30, 2017 Oklahoma Economic Indicators

Energy. After dropping in February 2016 to near $26/barrel for crude oil and $2.60/MCF natural gas, benchmark prices on December 28, 2016, had risen to $53 + for crude oil and $3.80 for natural gas.

Energy. For 16 consecutive months, through August 2017, the active oil rig count had stayed the same or increased. In October 2017, there were 125 active rigs in Oklahoma, compared to 53 in October 2016.

Energy. In April 2017, active natural gas rig count is at its highest count since November 2015. Employment. Oklahoma County, home of Edmond, unemployment rate was 4.1% in October

2017. This rate is below the unemployment rate for both Oklahoma and the U.S. In October 2017, the strongest employment growth was in the mining and logging (9.9%) and construction (7.5%) sectors

Leading Indicators. Federal Reserve Bank leading index from November 2015 through May 2016 for Oklahoma was in negative territory for six out of seven readings. However, the state’s economy has turned around. Since June 2016, the leading index returned to positive readings for the past 16 months, with the September 2017 forecast turned up to a 1.95% percent pace. Overall, Oklahoma’s leading index for September suggests expansion in the state’s economy into the 1st quarter of 2018.

Regional indicator. Mid-America Business Conditions, for October 2017, climbed to a robust 63.0 from 62.7 the prior month. The rate for October 2016 had been 43.8, with anything above 50 suggesting an improvement in economic conditions.

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

28


June 30, 2017

For FY17-18 budget, City has proposed a 1% growth in sales tax. Beginning with June 2017, City has experienced a growth over previous year sales tax collections for six consecutive months. For FY17-18, sales tax collections exceed the same period through November by 2.03%. Use Tax

Effective March 1, 2017, Amazon began to collect Use Tax on direct items sold and delivered within Oklahoma. The City of Edmond received its first remittance which included Amazon collections in May 2017. Since receipts beginning in May 2017, our year to date change for the past seven months has been a 48.8% increase in Use Tax payments. This represents a $1,216,794 increase over previous period collections for the General Fund. City of Edmond’s FY17-18 Budget The FY17-18 Budget direct cost totals $271,961,867, a decrease of about 8.6% from FY16-17. This decrease of about $26 million is primarily the result of unbudgeted capital expansions in both Wastewater

29


June 30, 2017 Treatment and Water Treatment during the current fiscal year. Those projects, once project scopes have been completed and financing arranged, could total over $350 million and take up to three years to complete. Highlights Include:

The three sales taxes approved by voters in 2000 continue to provide base revenue for both Public Safety (police and fire) and capital projects. The Fire Department receives a quarter-cent tax, the Police Department, a one-eight cent tax and a three-quarter cent tax is allocated for capital improvements. The net result is almost two-thirds of General Fund revenue is automatically allocated to fire and police operations.

Edmond total sales tax rate remains at 8.25%. This rate is comprised of 3.75% in local taxes and a

4.5% state tax that is charged to all cities. Of the four largest cities in the Oklahoma City metro area, Edmond has the lowest combined sales tax rate.

In April 2016, voters approved two sales tax extensions through March 31, 2027. The one percent General Fund Sales Tax Extension was approved by 80% of the vote. The one-half percent Public Safety Center tax was set to expire March 31, 2017. The voters approved by 73% of the vote an extension of the tax for Capital Improvements. The City Council created a Capital Improvements Advisory Tax Force to examine the funding of major capital projects from this fund. Effective April 1, 2017, 0.5% sales tax rate began collecting funds for the 2017 Capital Improvement Fund. Projects from the replacement tax in the budget for FY17-18 include Tennis Court development, jointly funded with Edmond Public Schools; implementation of Phase 1 of the Downtown Development Plan; expansion of the Edmond Animal Shelter; and Fire Station #2 relocation.

In October 2017, The Edmond Public Works Authority issued $167,025,000 in Sales Tax and Utility System Revenue bonds. Improvements to be funded by this project primarily consists of a new Wastewater Treatment Recovery Facility that will allow City to serve expected growth for a 20 year period and to satisfy permit requirements established by Oklahoma Department of Environmental Quality. The Edmond PWA have approved annual rate increases through November 2019 for both water and wastewater customers.

2000 Capital Improvement Sales Tax Fund

This fund continues to provide the primary financing for capital improvements in Edmond. This ¾ cent tax was initially approved by voters in 1996 and indefinitely extended in 2000.

Construction was completed in 2017 on the Spring Creek Trail from I-35 to Spring Creek Park at

Arcadia Lake. This is the first phase of a significant regional trail project that will also receive significant funding from private funding and state grants.

Road improvements on Covell, from Fairfax Boulevard to I-35, were completed in summer 2017. This project includes funding from Oklahoma Department of Transportation (ODOT). This project

30


June 30, 2017

complements the interchange improvements as part of a major economic development project associated with the development of a Hotel/Conference Center (HCC).

The development of the two northern corners of I-35 & Covell represents the most significant City involvement in an economic development project. The City has committed $11 million from this fund for the purchase of land for the HCC on the northwest corner ($2.2 million), the purchase of land for a proposed Indoor Sports Complex on the northeast corner ($2 million), infrastructure improvements to serve development on the west side of the interchange ($2 million), and funding assistance for the construction HCC ($4.8 million). The HCC will open in December 2017. The executed development agreements provide for the City to be repaid $9 million of the $11 million investment in 15 years as the developers buy out the City’s interest in the land and the conference center improvements. Additional projects for the area include a proposed entertainment complex, with a preliminary term sheet approved by the Edmond City Council. Under construction within the area is a grocery store and a limited service restaurant.

The development of an Intelligent Traffic System (ITS) continues to be an important multi-year capital program, which features improved traffic control equipment at local intersections. The system features continuous communication with a central computer system which allows the traffic signal system to be adjusted in real time to meet specific traffic issues as they arise. The first improvement corridor project completed was along 2nd Street/Edmond Road, from Santa Fe on the west to Boulevard on the east. ODOT funds provided major financial assistance in funding ITS improvements. Design is completed for the next phase, which includes incorporating signals along Broadway.

Results from the previous biennial citizen surveys indicate that traffic issues are the community’s biggest concern. Three projects have been completed. Completed in 2016, with the financial assistance from ODOT, was the turn lane addition at 33rd and Broadway. Construction was completed in Fall 2017 for additional turn lanes at both Santa Fe and Bryant on Covell.

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

For FY17-18, the 2000 CIP is budgeted to implement over $6 million in street and transportation related projects.

CONTACTING THE CITY’S FINANCIAL MANAGEMENT TEAM

This financial report is designed to provide our citizens, customers and creditors with a general overview of the City’s finances and to show the City’s accountability for the money it receives. If you have questions about this report or need additional information, contact the Finance office at 7 N. Broadway, P.O. Box 2970, Edmond, OK 73083-2970 or call 405-359-4521.

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32

BASIC FINANCIAL STATEMENTS

CITY OF EDMOND, OKLAHOMA ANNUAL FINANCIAL REPORT

June 30, 2017

City of Edmond, OklahomaStatement of Net Position

June 30, 2017

Governmental Activities

Business-type Activities Total

Historic Preservation

Trust

Economic Development

AuthorityASSETSCurrent Assets:

Cash and equivalents 21,374,409$ 23,492,179$ 44,866,588$ 89,184$ 386,349$ Investments 56,052,372 97,335,386 153,387,758 - - Restricted assets:

Cash and equivalents 10,863,966 47,785,591 58,649,557 - 41,270 Investments - 4,917,530 4,917,530 - -

Accrued interest receivable 110,946 202,221 313,167 - 861 Accounts receivable, net of allowance 1,407,376 20,720,829 22,128,205 - - Internal Balances (7,781,671) 7,781,671 - - - Notes receivable - - - - 159,796 Due from other governments 10,842,145 168,783 11,010,928 - - Inventory 1,063,722 2,436,467 3,500,189 - -

Total Current Assets 93,933,265 204,840,657 298,773,922 89,184 588,276 Non-current Assets:

Restricted assets:Cash and equivalents 2,788,521 3,681,062 6,469,583 - - Investments 5,156,996 2,161,426 7,318,422 - - Derivative instruments 1,479,749 597,883 2,077,632 - -

Capital Assets:Non-depreciable 53,146,486 37,332,302 90,478,788 100,450 - Depreciable, net of depreciation 274,912,465 210,372,505 485,284,970 66,276 10,038 Total Non-current Assets 337,484,217 254,145,178 591,629,395 166,726 10,038

Total Assets 431,417,482 458,985,835 890,403,317 255,910 598,314

DEFERRED OUTFLOWS OF RESOURCESDeferred charge on refunding 1,057,729 596,974 1,654,703 - - Deferred amounts related to pension 21,909,036 3,366,967 25,276,003 - 113,237

Total deferred outflow of resources 22,966,765 3,963,941 26,930,706 - 113,237

LIABILITIESCurrent Liabilities:

Accounts payable and other accrued expenses 5,596,970 12,153,437 17,750,407 - 2,488 Accrued interest payable 955,767 1,359,621 2,315,388 - - Amounts held in escrow 358,118 - 358,118 - - Matured revenue bonds payable 6,664,309 - 6,664,309 - - Meter deposit liability - 413,094 413,094 - - Unearned revenue 5,351,523 - 5,351,523 - - Current portion:

Capital lease obligations - 4,584 4,584 - - Notes payable - 1,341,102 1,341,102 - - Revenue bonds payable 6,701,393 5,298,607 12,000,000 - - Compensated absences 375,435 75,312 450,747 - 2,846 Estimated liability for claims 1,797,151 - 1,797,151 - -

Total Current Liabilities 27,800,666 20,645,757 48,446,423 - 5,334

Non-current Liabilities:Compensated absences 3,378,900 677,808 4,056,708 - 25,614 Meter deposit liability - 4,145,656 4,145,656 - - Net OPEB obligation 2,847,437 778,392 3,625,829 - - Net pension liability 65,171,834 5,754,480 70,926,314 - 193,963 Capital lease obligations - 17,678 17,678 - - Revenue bonds payable, net 45,983,449 67,552,410 113,535,859 - - Notes payable - 12,347,161 12,347,161 - - Claims and judgments 2,120,050 - 2,120,050 - -

Total Non-current Liabilities 119,501,670 91,273,585 210,775,255 - 219,577

Total Liabilities 147,302,336 111,919,342 259,221,678 - 224,911

DEFERRED INFLOWSAccumulated increase in fair value of hedging derivatives 1,479,749 597,883 2,077,632 - - Deferred amounts related to pensions 681,243 82,075 763,318 - 15,901

Total deferred inflow of resources 2,160,992 679,958 2,840,950 - 15,901

NET POSITION

Net investment in capital assets 297,762,184 200,607,566 498,369,750 166,726 10,038 Restricted by:

Enabling legislation 7,896,328 - 7,896,328 - 41,270 Statutory requirements 677,621 - 677,621 - - External contracts 43,841,028 12,555,515 56,396,543 - -

Unrestricted (deficit) (45,256,242) 137,187,395 91,931,153 89,184 419,431 Total Net Position 304,920,919$ 350,350,476$ 655,271,395$ 255,910$ 470,739$

See accompanying notes to the basic financial statements.

Component UnitsPrimary Government

33


June 30, 2017

City of Edmond, Oklahoma

Statement of ActivitiesFor the Year Ended June 30, 2017

Component Units

Functions/Programs ExpensesCharges for

Services

Operating Grants and

Contributions

Capital Grants and

ContributionsGovernmental

ActivitiesBusiness-type

Activities Total

Historic Preservation

Trust

Economic Development

AuthorityPrimary government

Governmental ActivitiesGeneral government 8,005,753$ 9,352,670$ 516,902$ -$ 1,863,819$ -$ 1,863,819$ -$ -$ Public safety 52,798,820 1,115,725 5,213,863 - (46,469,232) - (46,469,232) - - Streets and highways 15,148,413 13,140 785,848 10,207,708 (4,141,717) - (4,141,717) - - Cultural, parks and recreation 8,080,826 127,378 35,484 102,069 (7,815,895) - (7,815,895) - - Health and welfare 1,681,699 859,838 - - (821,861) - (821,861) - - Interest on long-term debt 1,669,226 - - - (1,669,226) - (1,669,226) - -

Total governmental activities 87,384,737 11,468,751 6,552,097 10,309,777 (59,054,112) - (59,054,112) - -

Business-type activitiesElectric operations 80,292,128 96,627,510 370,077 - - 16,705,459 16,705,459 - - Water operations 18,724,132 28,766,025 - 2,733,536 - 12,775,429 12,775,429 - - Wastewater operations 9,664,933 15,752,873 54,126 1,907,110 - 8,049,176 8,049,176 - - Sanitation operations 7,157,872 9,199,752 - - - 2,041,880 2,041,880 - - Lake operations 1,453,667 1,108,201 - - - (345,466) (345,466) - - Drainage operations 1,034,170 1,791,313 - - - 757,143 757,143 - - Golf course operations 2,201,686 1,988,412 - - - (213,274) (213,274) - - Cooperative purchasing services 50,897 91,286 - - - 40,389 40,389 - - Transportation operations 1,692,550 282,098 743,700 - - (666,752) (666,752) - -

Total business-type activities 122,272,035 155,607,470 1,167,903 4,640,646 - 39,143,984 39,143,984 - -

Total primary government 209,656,772$ 167,076,221$ 7,720,000$ 14,950,423$ (59,054,112) 39,143,984 (19,910,128) Component Units

Cultural, parks and recreation 52,580$ -$ -$ -$ (52,580) - Economic development 631,419 140,852 - - - (490,567)

Total component units 683,999$ 140,852$ -$ -$ (52,580) (490,567)

General revenues:Taxes:

Sales and use taxes 38,693,158 - 38,693,158 - - Sales and use taxes - Restricted for public safety 8,631,688 - 8,631,688 - - Sales and use taxes - Restricted for park and recreation 2,107,465 - 2,107,465 - - Sales and use taxes - Restricted for capital improvements 18,765,363 - 18,765,363 - - Hotel/motel taxes 464,292 - 464,292 - - Franchise taxes 2,142,557 - 2,142,557 - -

Payment from City of Edmond - - - 20,000 572,420 Grants and contributions not restricted to specific programs 1,118,273 - 1,118,273 - - Unrestricted investment earnings 626,649 929,047 1,555,696 122 5,607 Miscellaneous 1,097,844 - 1,097,844 1,128 -

Transfers 3,311,003 (3,311,003) - - - Total general revenues and transfers 76,958,292 (2,381,956) 74,576,336 21,250 578,027

Change in net position 17,904,180 36,762,028 54,666,208 (31,330) 87,460 Net position - beginning 287,016,739 313,588,448 600,605,187 287,240 383,279

Net position - ending 304,920,919$ 350,350,476$ 655,271,395$ 255,910$ 470,739$


Program RevenueNet (Expense) Revenue and Changes in Net Position

Primary Government

34


June 30, 2017


Balance Sheet Governmental Funds

June 30, 2017

General FundFire Public Safety Limited Tax Fund

Police Public Safety Limited

Tax Fund

2000 Capital Improvement

Tax Fund

2012 Public Safety Center

Tax Fund

Other Governmental

Funds

Total Governmental

Funds ASSETS

Cash and cash equivalents 461,198$ 2,403,296$ 1,383,921$ 16,018,533$ 418,501$ 9,291,245$ 29,976,694$ Investments 1,988,546 10,425,935 6,003,524 15,382,014 1,814,020 4,426,648 40,040,687 Due from other funds 1,140,574 - - - - - 1,140,574 Due from other governments 6,152,547 630,689 333,612 1,892,066 - 1,643,791 10,652,705 Accrued interest receivable 3,935 20,629 11,879 20,241 3,590 8,766 69,040 Other receivables 1,057,738 - - - - 163,088 1,220,826

Interfund loan receivable - - 1,000 - - - 1,000 Total assets 10,804,538$ 13,480,549$ 7,733,936$ 33,312,854$ 2,236,111$ 15,533,538$ 83,101,526$

LIABILITIES, DEFERRED INFLOWS AND FUND BALANCESLiabilities:

Accounts payable 249,901$ 583,797$ 694,669$ 1,642,292$ 11,948$ 617,956$ 3,800,563$ Due to other funds 18,016 - - - - 1,124,811 1,142,827 Unearned revenue 180,372 - - - - - 180,372 Other accrued expenses - - - - - 2,607 2,607 Matured revenue bonds payable - - - 7,620,076 - - 7,620,076 Amounts held in escrow 358,118 - - - - - 358,118

Total liabilities 806,407 583,797 694,669 9,262,368 11,948 1,745,374 13,104,563

Deferred Inflows of Resources:Unavailable revenue 455,572 12,314 7,091 12,082 2,143 5,233 494,435

Total deferred inflows of resources 455,572 12,314 7,091 12,082 2,143 5,233 494,435

Fund balances:Restricted 2,660,047 12,122,150 5,993,091 20,569,609 2,197,190 12,215,373 55,757,460 Committed - - - - - 3,444 3,444 Assigned 1,462,779 762,288 1,039,085 3,468,795 24,830 1,614,160 8,371,937 Unassigned 5,419,733 - - - - (50,046) 5,369,687

Total fund balances 9,542,559 12,884,438 7,032,176 24,038,404 2,222,020 13,782,931 69,502,528 Total liabilities and fund balances 10,804,538$ 13,480,549$ 7,733,936$ 33,312,854$ 2,236,111$ 15,533,538$ 83,101,526$


35


June 30, 2017

City of Edmond, OklahomaReconciliation of the Governmental Funds Balance Sheet to the Statement of

Net PositionJune 30, 2017

Total fund balance, governmental funds 69,502,528$

Amounts reported for governmental activities in the Statement of Net Position are different because:

Capital assets used in governmental activities are not current financial resources and therefore are not reported in the funds, net of accumulated depreciation of $226,576,421 310,174,370

Certain other long-term assets are not available to pay current fund liabilities and therefore they, along with deferred outflows, are deferred in the funds:

Accrued interest receivable 39,950 Other receivables, net of allowance 454,485 Pension related deferred outflows 16,436,979

Certain long-term liabilities are not due and payable from current financial resources and therefore they, along with deferred inflows, are not reported in the funds:

Revenue bonds payable (49,258,947) Accrued compensated absences (2,732,071) Deferred amount on refunding 1,057,729 Unamortized debt premium (3,425,895) Net pension liability (55,511,606) Pension related deferred inflows (618,658) Net OPEB obligation (2,383,541) Advance (5,171,151) Deferred amount related to derivative instrument 1,479,749

Accumulated increase in fair value of hedging derivatives is a deferred inflow (1,479,749)

Internal service funds are used by management to charge costs of certain activities that benefit multiple funds, such as self-insurance, vehicle maintenance, and other such costs, to individual funds. The assets and liabilities of certain of these internal service funds are reported in governmental activities in the Statement of Net Position:

Internal service funds' net position 34,136,165 Internal service fund interfund balance resulting from net revenues reported in business-type activities (7,779,418)

Net Position of Governmental Activities in the Statement of Net Position 304,920,919$


36


June 30, 2017


Statement of Revenues, Expenditures and Changes in Fund BalancesGovernmental Funds

For the Year Ended June 30, 2017

General Fund

Fire Public Safety Limited

Tax Fund

Police Public Safety Limited

Tax Fund

2000 Capital Improvement Tax

Fund

2012 Public Safety Center

Tax FundOther Governmental

FundsTotal Governmental

Funds REVENUES

Sales and use taxes 38,693,158$ 4,214,931$ 2,107,465$ 12,644,793$ 6,120,570$ 4,416,757$ 68,197,674$ Franchise and public service taxes 2,142,557 - - - - - 2,142,557 Hotel/motel taxes - - - - - 464,292 464,292 Intergovernmental 1,976,671 3,998,065 1,386,598 - - 444,352 7,805,686 Charges for services 6,780,188 10 - - - 883,686 7,663,884 Fines and forfeitures 2,267,734 - - - - - 2,267,734 Licenses and permits 1,452,924 - - - - - 1,452,924 Investment income 44,619 73,363 56,040 319,944 48,804 40,488 583,258 Investment earnings on interfund loans - - - - - 61,930 61,930 Miscellaneous 148,255 58,947 152,665 434,928 - 312,215 1,107,010

Total revenues 53,506,106 8,345,316 3,702,768 13,399,665 6,169,374 6,623,720 91,746,949

EXPENDITURESCurrent:

General government 5,370,175 - - 128,338 - 612,689 6,111,202 Public safety 2,955,869 22,662,751 23,685,664 - 148,112 34,708 49,487,104 Health and sanitation 648,896 - - - - 778,052 1,426,948 Culture, parks and recreation 3,718,180 - - - - 1,329,766 5,047,946 Streets and highways 5,377,604 - - - - - 5,377,604 Debt Service: -

Principal - - - 6,529,309 - - 6,529,309 Interest and other charges - - - 1,943,070 61,930 - 2,005,000

Capital Outlay 2,027,680 561,289 73,138 12,830,605 1,470,892 2,879,107 19,842,711 Total Expenditures 20,098,404 23,224,040 23,758,802 21,431,322 1,680,934 5,634,322 95,827,824

Excess (deficiency) of revenues over expenditures 33,407,702 (14,878,724) (20,056,034) (8,031,657) 4,488,440 989,398 (4,080,875)

OTHER FINANCING SOURCES (USES)Transfers in 18,393,519 15,885,554 19,486,282 - - 361,010 54,126,365 Transfers out (49,411,652) - - (25,500) (268,210) (1,110,000) (50,815,362)

Total other financing sources and uses (31,018,133) 15,885,554 19,486,282 (25,500) (268,210) (748,990) 3,311,003 Net change in fund balances 2,389,569 1,006,830 (569,752) (8,057,157) 4,220,230 240,408 (769,872)

Fund balances - beginning 7,152,990 11,877,608 7,601,928 32,095,561 (1,998,210) 13,542,523 70,272,400

Fund balances - ending 9,542,559$ 12,884,438$ 7,032,176$ 24,038,404$ 2,222,020$ 13,782,931$ 69,502,528$


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June 30, 2017


Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities


Net change in fund balances - total governmental funds: (769,872)$

Amounts reported for Governmental Activities in the Statement of Activities are different because:

Governmental funds report capital outlays as expenditures while governmental activities report depreciation expense to allocate those expenditures over the life of the assets:

Capital asset purchases capitalized 19,517,073 Capital assets donated 10,207,708 Depreciation expense (15,525,364)

Disposal of capital assets (3,128)

In the Statement of Activities, the cost of pension benefits earned net of employee contributions is reported as an element of pension expense. The fund financial statements report pension contributions as expenditures. 102,352

Governmental funds report bond issuance costs as expenditures and bond premiums as revenue while governmental activities report amortization and interest expense to allocate those expenditures over the term of the bonds:

Amortization expense (165,454) Interest expense 501,457

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

Advance 311,828 Grants (12,314) Court (23,200) Interest (18,539)

Bond proceeds provide current financial resources to governmental funds, but issuing debt increases long-term liabilities in the Statement of Net Position. Repayment of debt principal is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the Statement of Net Position:

Revenue bond principal payment 6,529,309

Some expenses reported in the statement of activities do not require the use of current financial resources and these are not reported as expenditures in governmental funds:

Accrued compensated absences change (122,719) Net OPEB obligation change (250,326)

Internal service fund activity is reported as a proprietary fund in the fund financial statements, but certain net revenues are reported in governmental activities on the statement of Activities:Total change in net position for internal service funds (2,406,381) Net revenues of internal service funds reported in business-type activities 31,750

Change in net position of governmental activities 17,904,180$


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June 30, 2017

Edmond Public Works Authority (EPWA)Enterprise Funds

Electric Fund Water FundWastewater

FundOther Enterprise

Funds TotalInternal Service

FundsASSETSCurrent assets:

Cash and cash equivalents 6,183,720$ 8,656,966$ 5,641,691$ 3,009,802$ 23,492,179$ 5,040,202$ Investments 23,618,839 36,861,432 24,125,779 12,729,336 97,335,386 21,178,681 Restricted assets:

Cash and cash equivalents 21,519 10,131,384 36,645,833 986,855 47,785,591 - Investments 3,263,977 903,222 446,892 303,439 4,917,530 -

Receivables:Accrued interest receivable 53,056 74,648 48,716 25,801 202,221 41,906 Utility billing, net of allowance for uncollectible accounts 14,031,916 3,747,395 1,638,727 1,147,254 20,565,292 - Due from other governments - 122 - 168,661 168,783 189,440 Other receivables 95,721 14,782 - 45,034 155,537 186,550

Due from other funds 369,231 69,221 36,925 897,771 1,373,148 - Inventories 2,365,901 - - 70,566 2,436,467 1,062,722

Total current assets 50,003,880 60,459,172 68,584,563 19,384,519 198,432,134 27,699,501 Non-current assets:

Restricted assets:Cash and cash equivalents 33,037 1,307,157 2,209,518 131,350 3,681,062 - Investments 54,104 1,820,397 70,040 216,885 2,161,426 - Derivative instruments - 597,883 - - 597,883 -

Capital Assets:Nondepreciable 381,867 16,142,960 19,144,360 1,663,115 37,332,302 809,418 Depreciable, net of accumulated depreciation 44,699,810 97,830,828 55,661,603 12,180,264 210,372,505 17,075,163

Total non-current assets 45,168,818 117,699,225 77,085,521 14,191,614 254,145,178 17,884,581 Total assets 95,172,698 178,158,397 145,670,084 33,576,133 452,577,312 45,584,082

DEFERRED OUTFLOWS OF RESOURCESDeferred charge on refunding 13,088 497,261 12,436 74,189 596,974 - Deferred amounts related to pensions 1,471,352 615,966 322,191 957,458 3,366,967 5,472,057

Total deferred outflows of resources 1,484,440 1,113,227 334,627 1,031,647 3,963,941 5,472,057


Accounts payable 6,413,530 2,412,059 2,207,498 672,967 11,706,054 1,078,429 Salaries payable 188,477 76,583 36,150 146,173 447,383 715,371 Accrued interest payable 10,208 546,421 770,563 32,429 1,359,621 - Due to other funds 470,496 255,117 195,039 450,243 1,370,895 - Current portion:

Compensated absences 35,416 11,053 5,307 23,536 75,312 102,228 Capital lease obligation 4,584 - - - 4,584 - Claims and judgments - - - - - 1,797,151 Notes payable - 1,341,102 - - 1,341,102 - Revenue bonds payable 112,928 3,885,377 795,977 504,325 5,298,607 - Meter deposit liability 282,711 66,283 32,855 31,245 413,094 -

Total current liabilities 7,518,350 8,593,995 4,043,389 1,860,918 22,016,652 3,693,179 Non-current liabilities:

Compensated absences 318,748 99,480 47,760 211,820 677,808 920,036 Meter deposit liability 2,981,226 596,544 295,692 272,194 4,145,656 - Claims and judgments - - - - - 2,120,050 Capital lease obligation 17,678 - - - 17,678 - Net OPEB obligation 327,770 152,330 48,022 250,270 778,392 463,896 Net pension liability 2,598,313 1,024,962 476,850 1,654,355 5,754,480 9,660,228 Notes payable - 12,347,161 - - 12,347,161 - Revenue bonds payable, net 543,056 22,179,338 42,401,039 2,428,977 67,552,410 -

Total non-current liabilities 6,786,791 36,399,815 43,269,363 4,817,616 91,273,585 13,164,210 Total liabilities 14,305,141 44,993,810 47,312,752 6,678,534 113,290,237 16,857,389

DEFERRED INFLOW OF RESOURCESAccumulated increase in fair value of hedging derivatives - 597,883 - - 597,883 - Deferred amounts related to pensions 38,390 7,733 12,498 23,454 82,075 62,585

Total deferred inflow of resources 38,390 605,616 12,498 23,454 679,958 62,585

NET POSITIONNet investment in capital assets 44,416,519 78,062,721 67,144,060 10,984,266 200,607,566 17,936,222 Restricted for debt service 98,492 8,400,529 2,750,496 1,305,998 12,555,515 - Restricted for scholarships - - - 1,301 1,301 - Unrestricted 37,798,596 47,208,948 28,784,905 15,614,227 129,406,676 16,199,943

Total net position 82,313,607$ 133,672,198$ 98,679,461$ 27,905,792$ 342,571,058$ 34,136,165$

7,779,418

Total net position per Government-Wide financial statements 350,350,476$


Some amounts reported for business-type activities in the Statement of Net Position are different because certain internal service fund balances are included with business-type activities and reported as interfund balances

City of Edmond, OklahomaStatement of Net Position

Proprietary FundsJune 30, 2017

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June 30, 2017




Funds TotalInternal Service

FundsOPERATING REVENUES

Charges for services 96,615,344$ 27,399,432$ 15,042,046$ 14,039,213$ 153,096,035$ 46,930,214$ Permits and other fees - 1,245,598 695,415 - 1,941,013 - Operating grants and contributions - - - 743,700 743,700 - Miscellaneous 12,690 104,989 - 424,228 541,907 196,348

Total operating revenues 96,628,034 28,750,019 15,737,461 15,207,141 156,322,655 47,126,562

OPERATING EXPENSESPersonal services 5,010,953 2,061,204 981,293 3,674,732 11,728,182 19,455,510 Materials and supplies 1,111,940 358,085 486,627 1,015,502 2,972,154 3,204,500 Wholesale electricity purchases 58,950,811 - - - 58,950,811 - Maintenance, operations and contractual services 11,843,875 7,925,662 4,343,085 8,867,517 32,980,139 12,274,915 Insurance premium expense - - - - - 1,395,149 Claims expense - - - - - 11,063,623 Depreciation 3,149,155 6,945,465 2,380,817 452,786 12,928,223 2,415,882

Total Operating Expenses 80,066,734 17,290,416 8,191,822 14,010,537 119,559,509 49,809,579 Operating income (loss) 16,561,300 11,459,603 7,545,639 1,196,604 36,763,146 (2,683,017)

NON-OPERATING REVENUES (EXPENSES)Interest and investment revenue 204,588 389,247 242,485 92,727 929,047 154,531 Miscellaneous revenue 369,553 70,132 15,412 - 455,097 189,602 Gain (Loss) on capital asset disposal - - - 5,160 5,160 (67,497) Interest expense (21,285) (1,193,496) (1,380,811) (90,344) (2,685,936) - Miscellaneous expenses - - - (2,379) (2,379) -

Total non-operating revenue (expenses) 552,856 (734,117) (1,122,914) 5,164 (1,299,011) 276,636 Income (loss) before contributions and transfers 17,114,156 10,725,486 6,422,725 1,201,768 35,464,135 (2,406,381)

Capital contributions - 2,733,536 1,907,110 - 4,640,646 - Transfers in - 12,587,120 - 1,385,396 13,972,516 - Transfers out (3,861,180) (12,792,880) (276,035) (353,424) (17,283,519) -

Change in net position 13,252,976 13,253,262 8,053,800 2,233,740 36,793,778 (2,406,381) Total net position - beginning 69,060,631 120,418,936 90,625,661 25,672,052 305,777,280 36,542,546 Total net position - ending 82,313,607$ 133,672,198$ 98,679,461$ 27,905,792$ 342,571,058$ 34,136,165$

Change in net position, per above 36,793,778$

(31,750)

Change in Business-Type Activities in Net Position per Government-Wide Financial Statements 36,762,028$


Some amounts reported for business-type activities in the Statement of Activities are different because the net revenue of certain internal service funds is reported with business-type activities

City of Edmond, OklahomaStatement of Revenues, Expenses and Changes in Fund Net Position

For the Year Ended June 30, 2017Proprietary Funds

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June 30, 2017





FundsTotal Enterprise

FundsInternal Service

FundsCASH FLOWS FROM OPERATING ACTIVITIES

Receipts from customers 96,747,337$ 27,829,954$ 15,516,283$ 15,338,525$ 155,432,099$ 47,548,827$ Payments to suppliers (72,452,914) (6,130,292) (4,546,692) (9,697,998) (92,827,896) (16,707,994) Payments to employees (4,682,916) (1,912,743) (882,926) (3,475,391) (10,953,976) (18,744,804) Receipts of customer meter deposits 1,088,086 - - - 1,088,086 - Payment of customer meter deposits (668,257) - - - (668,257) - Claims and judgments paid - - - - - (9,550,584) Interfund payments (253,950) (69,221) (36,925) (720,688) (1,080,784) 18,112 Interfund receipts 470,496 113,847 63,114 433,327 1,080,784 -

Net cash provided by operating activities 20,247,882 19,831,545 10,112,854 1,877,775 52,070,056 2,563,557

CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIESTransfers from other funds - 12,587,120 - 1,385,396 13,972,516 - Transfer to other funds (3,861,180) (12,792,880) (276,035) (353,424) (17,283,519) -

Net cash provided by (used in) noncapital financing activities (3,861,180) (205,760) (276,035) 1,031,972 (3,311,003) -

CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIESPurchase of capital assets (2,423,310) (10,922,318) (9,352,455) (564,681) (23,262,764) (2,831,405) Premium on capital debt issued - 375,676 4,537,150 - 4,912,826 - Proceeds from sale of capital assets - - - - - 64,291 Proceeds from issuance of capital debt - 3,460,626 38,334,374 - 41,795,000 - Principal paid on capital debt (111,633) (4,983,980) (84,682) (557,708) (5,738,003) - Interest paid on capital debt (28,325) (1,405,311) (1,149,372) (125,440) (2,708,448) -

Net cash provided by (used in) capital and related financing activities (2,563,268) (13,475,307) 32,285,015 (1,247,829) 14,998,611 (2,767,114)

CASH FLOWS FROM INVESTING ACTIVITIESPurchases of investments (9,816,275) - (584,464) (973,477) (11,374,216) (668,592) Sale of investments - 820,140 - 750,368 1,570,508 2,909,872 Interest and dividends 264,663 492,606 308,693 128,472 1,194,434 213,485

Net cash provided by (used in) investing activities (9,551,612) 1,312,746 (275,771) (94,637) (8,609,274) 2,454,765

Net Increase in cash and cash equivalents 4,271,822 7,463,224 41,846,063 1,567,281 55,148,390 2,251,208

Balances-beginning of year 1,966,454 12,632,283 2,650,979 2,560,726 19,810,442 2,788,994

Balances-end of year 6,238,276$ 20,095,507$ 44,497,042$ 4,128,007$ 74,958,832$ 5,040,202$

Reconciliation to Combining Statement of Net Position:Cash, including time deposits 6,183,720$ 8,656,966$ 5,641,691$ 3,009,802$ 23,492,179$ 5,040,202$ Restricted cash, including time deposits-current 21,519 10,131,384 36,645,833 986,855 47,785,591 - Restricted cash, including time deposits-noncurrent 33,037 1,307,157 2,209,518 131,350 3,681,062 -

Total cash and cash equivalents, end of year 6,238,276$ 20,095,507$ 44,497,042$ 4,128,007$ 74,958,832$ 5,040,202$

Reconciliation of Operating Income (Loss) to Net Cash Provided by Operating Activities:Operating income (loss) 16,561,300$ 11,459,603$ 7,545,639$ 1,196,604$ 36,763,146$ (2,683,017)$ Adjustments to reconcile operating income (loss) to net cash provided by operating activities:

Depreciation expense 3,149,155 6,945,465 2,380,817 452,786 12,928,223 2,415,882 Miscellaneous non-operating revenue (expense) 369,553 70,132 15,412 (2,379) 452,718 189,602

Change in assets and liabilities:Receivables, net (240,647) (975,415) (236,590) 133,763 (1,318,889) - Other receivable (9,603) (14,782) - - (24,385) 226,663 Inventories (198,309) - - 4,548 (193,761) (164,258) Deposits with TPA - - - - - - Prepaid expenses - - - - - - Due from other governments - - - - - 6,000 Due from other funds (253,950) (69,221) (36,925) (720,688) (1,080,784) 18,112 Deferred outflows related to pension (574,480) (287,262) (198,964) (399,216) (1,459,922) - Accounts and other payables (315,457) 2,169,460 296,031 191,402 2,341,436 427,909 Due to other funds 470,496 113,847 63,114 433,327 1,080,784 - Customer meter deposits payable 419,829 - - - 419,829 - Unearned revenue - - - - - - Claims liability - - - - - 994,015 Net OPEB obligation 32,324 17,091 7,390 25,137 81,942 145,381 Net Pension liability 811,691 388,145 241,656 546,933 1,988,425 965,158 Deferred inflows related to pension 18,016 7,733 12,498 18,839 57,086 - Accrued compensated absences 7,964 6,749 22,776 (3,281) 34,208 22,110

Net cash provided by operating activities 20,247,882$ 19,831,545$ 10,112,854$ 1,877,775$ 52,070,056$ 2,563,557$

Non-cash Activities:Capital assets donated -$ 2,733,536$ 1,907,110$ -$ 4,640,646$ -$ Change in fair value of investments (90,277) (126,384) (82,363) (43,896) (342,920) (71,330)

Total Non-cash Activities (90,277)$ 2,607,152$ 1,824,747$ (43,896)$ 4,297,726$ (71,330)$


City of Edmond, OklahomaStatement of Cash Flows

Proprietary Funds

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June 30, 2017

City of Edmond, OklahomaStatement of Fiduciary Net Position

Fiduciary FundsJune 30, 2017

Pension Trust Fund Agency Funds

ASSETSCash and cash equivalents 1,031,914$ $ 586,454 Accrued interest 51,423 -

Total cash and cash equivalents 1,083,337 586,454 Investments at fair value:

Common stock 1,010,299 - Pooled equity funds 38,844,490 - Pooled fixed income funds 17,343,863 - Alternative-open end mutual funds 12,139,054 -

Total investments 69,337,706 - Other receivable - 26,656

Total assets 70,421,043 613,110

LIABILITIES Accounts payable 11,664 17,156 Due to other governments 2,500 - Refunds payable and others - 595,954

Total liabilities 14,164 613,110

NET POSITIONNet position restricted for pension 70,406,879$ -$


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June 30, 2017

City of Edmond, OklahomaStatement of Changes in Fiduciary Net Position

Fiduciary FundsFor the Year Ended June 30, 2017

Pension Trust Fund

ADDITIONSContributions:

Employer 2,465,138$ Plan Members 1,458,953

Total contributions 3,924,091 Investment earnings:

Investment income 7,083,606 Investment activity expense (174,308)

Total net investment earnings 6,909,298 Total additions 10,833,389

DEDUCTIONSBenefits 2,457,234 Refunds of contributions 694,892 Administrative 11,018 Miscellaneous expense 1,032

Total deductions 3,164,176

Change in net position 7,669,213

Net position - beginning 62,737,666 Net position - ending 70,406,879$


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June 30, 2017

NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. FINANCIAL REPORTING ENTITY B. BASIS OF PRESENTATION C. MEASUREMENT FOCUS AND BASIS OF ACCOUNTING D. ASSETS, LIABILITIES, DEFERRED OUTFLOWS/INFLOWS OF RESOURCES AND NET POSITION/FUND BALANCE E. INTERNAL AND INTERFUND BALANCES AND ACTIVITIES F. REVENUES, EXPENDITURES AND EXPENSES G. USE OF ESTIMATES H. NEW ACCOUNTING PRONOUNCEMENTS NOTE 2. STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY A. FUND BALANCES AND NET POSITION B. DEPOSITS AND INVESTMENTS REQUIREMENTS C. DEBT RESTRICTIONS AND COVENANTS NOTE 3. DETAIL NOTES - TRANSACTION CLASSES/ACCOUNTS A. DEPOSIT AND INVESTMENT RISKS B. RECEIVABLES C. RESTRICTED ASSETS D. CAPITAL ASSETS E. LONG-TERM DEBT F. INTERFUND BALANCES AND ACTIVITIES G. FUND BALANCES AND NET POSITION NOTE 4. OTHER NOTES A. EMPLOYEE PENSION AND OTHER BENEFIT PLANS B. RISK MANAGEMENT C. COMMITMENTS AND CONTINGENCIES D. RECENTLY ISSUED ACCOUNTING STANDARDS E. ECONOMIC DEVELOPMENT

F. SUBSEQUENT EVENTS

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June 30, 2017

NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The City of Edmond’s (the City) accounting and financial reporting policies conform to accounting principles generally accepted in the United States of America (GAAP). GAAP includes all relevant Governmental Accounting Standards Board (GASB) pronouncements. The accounting and reporting framework and the more significant accounting policies are discussed in subsequent subsections of this Note. 1.A. FINANCIAL REPORTING ENTITY The City’s financial reporting entity comprises the following:

Primary Government: City of Edmond

Blended Component Unit: Edmond Public Works Authority

Discretely Presented Component Units: Edmond Economic Development Authority Edmond Historic Preservation Trust

In determining the financial reporting entity, the City complies with the provisions of Governmental Accounting Standards Board Statement No. 14, 34, 39, and 61 and includes all component units of which the City is fiscally accountable. Each of these component units are Public Trusts established pursuant to Title 60 of Oklahoma State law. Public Trusts (Authorities) have no taxing power. The Authorities are generally created to finance City services through issuance of revenue bonds or other non-general obligation debt and to enable the City Council to delegate certain functions to the governing body (Trustees) of the Authority. The Authorities generally retain title to assets which are acquired or constructed with Authority debt or other Authority generated resources. In addition, the City has leased certain existing assets at the creation of the Authorities to the Trustees on a long-term basis. The City, as beneficiary of the Public Trusts, receives title to any residual assets when a Public Trust is dissolved. BLENDED COMPONENT UNITS Blended component units are separate legal entities that meet the GASB 14, 39 and 61 component unit criteria and whose governing body is the same or substantially the same as the City Council or the component unit provides services entirely to the City. These component units’ funds are blended into the City’s by appropriate fund type to comprise part of the primary government presentation. One component unit is blended into the primary government’s fund types as presented below: Component Unit Brief Description/Inclusion Criteria Edmond Public Works Authority

(EPWA) Created October 6, 1970, to finance, develop and operate the water,sewer, garbage, electric, lake and drainage facilities. Also, the Authority operates and maintains the City’s golf course facility. Thecurrent City Council serves as the governing body (Trustees) of theEPWA and the city is responsible for daily operations. The City is able to impose its will on the EPWA because, by state law, all EPWA issuances of debt require a two-thirds approval of the City Council. The EPWA funds are reported as enterprise funds within the primarygovernment presentation.

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June 30, 2017

DISCRETELY PRESENTED COMPONENT UNITS Discretely presented component units are separate legal entities that meet the GASB 14 component unit criteria but do not meet the criteria for blending. The City has two component units that are discretely presented in the City’s report as presented below: Edmond Economic Development Authority (EEDA)

Created June 17, 1969, to promote and encourage the general economic and social development within or near the City of Edmond, Oklahoma. The Authority provides financing to businesses for the purpose of acquiring facilities for industrial, manufacturing, and charitable enterprises in or near the City. The EEDA governing body is appointed by the full City Council. All issuances of debt require a two-thirds approval of the City Council and the EEDA Trustees.

Complete financial statements of the Economic Development Authority component unit can be obtained from:

Edmond Economic Development Authority 825 E. 2nd, Suite 200 Edmond, OK 73034

Edmond Historic Preservation Trust (EHPT)

Created November 15, 1982 to preserve the qualities relating to the history of the City in order to promote the economic and general welfare of the people of the City of Edmond and to ensure the harmonious, orderly and efficient growth and development of the municipality. The EHPT governing body is appointed by the current City Council. The City is able to impose its will on the EHPT because, pursuant to state law, all issuance of EHPT debt requires a two-thirds approval of the City Council. The EHPT component unit does not issue separate financial statements.

1.B. BASIS OF PRESENTATION Government-Wide Financial Statements: The statement of net position and statement of activities display information about the City as a whole including component units. They include all financial activities of the reporting entity except for fiduciary activities. Eliminations have been made to minimize the double reporting of transactions involving internal activities. Individual funds are not displayed in these statements. Instead, the statements distinguish between governmental and business-type activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other non-exchange revenues. Business-type activities are financed in whole or in part by fees charged to external parties for goods or services. The statement of activities presents a comparison between the expenses and program revenues directly associated with the different governmental functions and business-type activities to arrive at the net revenue or expense of the function or activity prior to the use of taxes and other general revenues. Program revenues include (1) fees, fines, and service charges generated by the program or activity, (2) operating grants and contributions that are restricted to meeting the operational requirements of the program or activity, and (3) capital grants and contributions that are restricted to meeting the capital requirements of the program or activity.

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Fund Financial Statements: Fund financial statements of the reporting entity are organized into funds, each of which is considered to be separate accounting entities. Each fund is accounted for by providing a separate set of self-balancing accounts which constitute its assets, deferred outflows, liabilities, deferred inflows, fund equity, revenues, and expenditures/expenses. Separate financial statements are presented for the three major fund categories: governmental, proprietary and fiduciary. An emphasis of the fund financial statements is placed on major governmental and enterprise funds. A fund is considered major if it is the primary operating fund of the City or meets the following criteria:

a. Total assets and deferred outflows, liabilities, and deferred inflows, revenues or expenditures/expenses of that individual governmental or enterprise fund are at least 10 percent of the corresponding total for all funds of that category or type, and

b. Total assets and deferred outflows, liabilities and deferred inflows, revenues or

expenditures/expenses of the individual governmental fund or enterprise fund are at least 5 percent of the corresponding total for all governmental and enterprise funds combined.

c. A fund not meeting the criteria of (a) and (b), however management has elected to report

the fund as a major fund due to its significance to users of the financial statements. All remaining governmental and enterprise funds not meeting the above criteria are aggregated and reported as nonmajor funds. The funds of the financial reporting entity are described below: Governmental Funds The City reports five major governmental funds: General Fund Fire Public Safety Limited Tax Fund Police Public Safety Limited Tax Fund 2000 Capital Improvement Tax Fund 2012 Public Safety Center Tax Fund General Fund The General Fund is the primary operating fund of the City. It is used to account for all activities except those legally or administratively required to be accounted for in other funds. The General Fund is reported as a major governmental fund. The General Fund main sources of revenue include sales tax, franchise and public services taxes, and charge for services related to governmental activities. Due to GASB 54 for financial reporting purposes, the General Fund also includes the activity of the Edmond Electric Economic Development Fund and the Park Special Events Fund. In fiscal year 2016, the Real Property Fund was moved to an account of the General Fund from a special revenue fund because it no longer has a dedicated income stream. Prior to 2014, Citylink (Edmond’s public transportation service) was included in the General Fund. Beginning in 2014, Citylink has been moved and is included as a Business Type Activity. Also in 2013’s report, the Hotel/Motel tax was moved from the General Fund to Special Revenue Fund-CVB as a dedicated income revenue stream. We have continued to report this revenue there. Special Revenue Funds Special Revenue Funds are used to account for and report the proceeds of specific revenue sources that are legally or administratively restricted to expenditures for certain purposes. The reporting entity includes the following special revenue funds:

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Major Funds: Fire Public Safety Limited Tax Fund – used to account for restricted taxes and other dedicated revenues used to finance the operations of the City’s fire department Police Public Safety Limited Tax Fund – used to account for restricted taxes and other dedicated revenues used to finance the operations of the City’s police department and other capital projects Nonmajor Funds: CDBG Entitlement Fund Asset Forfeiture Fund Senior Center Fund Convention & Visitors Bureau Fund Hospital Sale Trust Fund Ambulatory Service Fund

Capital Project Funds Capital Project Funds are used to account for resources restricted for the acquisition or construction of specific capital projects or items. The reporting entity includes the following capital project funds:

Major Fund: 2000 Capital Improvement Tax Fund – used to account for the proceeds of a voter-restricted limited purpose sales tax to be used for capital improvements 2012 Public Safety Center Tax Fund – used to account for the proceeds of a five year half cent voter-restricted limited purpose sales tax to be used for the development of the City’s Public Safety Center and other capital projects as approved by the voters. Nonmajor Funds: Cemetery Care Fund Park Sales Tax Fund Art in Public Places Fund Capital Improvement Fund Roadway Improvement Fund 1996 Capital Improvement Tax Fund 2017 Capital Improvement Fund

Proprietary Funds Proprietary funds include both enterprise funds and internal service funds. Enterprise funds are used to account for business-like activities provided to the general public. Internal service funds are used to account for business-like activities provided and charged to other funds or entities within the reporting entity. Proprietary fund operating revenues, such as charges for services, result from exchange transactions associated with the principal activity of the fund. Nonoperating revenues of the proprietary funds include such items as investment earnings, interest expense and subsidies. The reporting entity includes the following enterprise funds and internal service funds: Enterprise Funds The City reports three major enterprise funds: Electric Fund – used to account for the operation and maintenance of the City electric utility services Water Fund – used to account for the operation and maintenance of the City water utility services Wastewater Fund - used to account for the operation and maintenance of the City wastewater utility services

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Nonmajor enterprise funds include: Sanitation Fund Arcadia Lake Fund Drainage Fund Kickingbird Golf Course Fund YourGovShop Fund Transportation Fund (CityLink)

Internal Service Funds Internal service funds include:

Employee Group Insurance Fund Vehicle Maintenance Fund Liability/Tort Claim Fund Fleet Management Fund Field Services Fund Administrative Support Services Fund

Fiduciary Funds The City’s fiduciary funds are used to report net position and changes therein of assets held by the City in a trustee or fiduciary capacity. This net position is not available for operations of the City. The City reports two types of fiduciary funds: Pension Trust Fund and Agency Funds. Agency funds are custodial in nature (i.e., assets equal liabilities) and do not involve the measurement of changes in net position. Pension Trust Fund – used to account for the net position and changes therein of the Edmond Employee Retirement System Agency Funds – used to account for assets held on behalf of others including the Sidewalk and Driveway Escrow

and the C.L.E.E.T. Penalty Assessment Fund 1.C. MEASUREMENT FOCUS AND BASIS OF ACCOUNTING Measurement focus is a term used to describe how transactions are recorded within the financial statements. Basis of accounting refers to when transactions are recorded regardless of the measurement focus applied. Measurement Focus On the government-wide Statement of Net Position and the Statement of Activities both governmental and business-like activities are presented using the economic resources measurement focus as defined in item b. below. In the fund financial statements, the “current financial resources” measurement focus or the “economic resources” measurement focus is used as appropriate:

a. All governmental funds utilize a “current financial resources” measurement focus. Only current financial assets, liabilities, deferred outflows and inflows are generally included on their balance sheets. Their operating statements present sources and uses of available spendable financial resources during a given period. These funds use fund balance as their measure of available spendable financial resources at the end of the period.

b. The proprietary fund utilizes an “economic resources” measurement focus. The accounting objectives of

this measurement focus are the determination of operating income, changes in net position (or cost recovery), financial position, and cash flows. All assets, liabilities (whether current or noncurrent), deferred outflows and inflows associated with their activities are reported. Proprietary fund equity is classified as net position.

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June 30, 2017

Basis of Accounting Government-wide, Proprietary and Fiduciary Fund Financial Statements In the government-wide Statement of Net Position and Statement of Activities, and the proprietary fund financial statements the accrual basis of accounting is applied. Under the accrual basis of accounting, revenues are recognized when earned and expenses are recorded when the liability is incurred or economic asset used. Revenues, expenses, gains, losses, assets and liabilities resulting from exchange and exchange-like transactions are recognized when the exchange takes place. Governmental Fund Financial Statements In the governmental fund financial statements, the modified accrual basis of accounting is applied. Under this modified accrual basis of accounting, revenues are recognized when “measurable and available”. Measurable means knowing or being able to reasonably estimate the amount. Available means collectible within the current period or soon enough thereafter to pay current liabilities. The City has defined “available” as collected within 60 days after year end. Sales and use taxes, franchise taxes, hotel/motel taxes, court fines and interest are considered susceptible to accrual. Expenditures (including capital outlay) are recorded when the related fund liability is incurred, except for general long-term debt principal and interest, claims and judgments, and accrued compensated absences, which are recorded as expenditures to the extent they have matured. Proceeds of general long-term debt and capital leases are reported as other financial sources. 1.D. ASSETS, LIABILITIES, DEFERRED OUTFLOWS/INFLOWS OF RESOURCES, AND NET POSITION/FUND BALANCE. Cash and Cash Equivalents Cash and cash equivalents include all demand accounts, savings accounts, money market investment in trust accounts, certificates of deposit and short-term investments with an original maturity of three months or less. Investments in open-ended mutual fund shares are also considered cash equivalents and are reported at the funds’ current share prices. Investments Investments are reported at fair value using selected bases. Securities traded on a national or international exchange are valued at the last reported sales price at current exchange rates. Investments that do not have an established market are reported at estimated fair value as estimated by a broker/dealer. Investments of the pension trust fund are also carried at fair value. Securities of the pension trust fund traded on a national or international exchange are valued at the last reported sales price at current exchange rates. All non-negotiable long-term certificates of deposit are carried at cost. Additional cash and investment disclosures are presented in Note 2.B. and Note 3.A. Receivables In the government-wide statements, receivables consist of all revenues earned at period-end and not yet received. Allowances for uncollectible accounts receivable are based upon historical trends and the periodic aging of accounts receivable. Major receivable balances for the governmental activities include sales and use taxes, franchise taxes, grants, police fines, ambulance fees. Business-type activities report utilities as its major receivables. In the fund financial statements, material receivables in governmental funds include revenue accruals such as sales tax, franchise tax, tax increment revenue, and grants and other similar intergovernmental revenues since they are usually both measureable and available. Non-exchange transactions collectible but not available are deferred in the fund financial statements in accordance with modified accrual, but not deferred in the government-wide financial statements in accordance with the accrual basis. Interest and investment earnings are recorded when earned on if paid within 60 days since they would be considered both measurable and available. Proprietary fund material receivables consist of all revenues earned at period-end and not yet received. Utility accounts receivable (such as electric, water, wastewater, sanitation and drainage revenues) comprise the majority of proprietary fund receivables. Allowances for uncollectible accounts receivable are based upon historical trends and the periodic aging of accounts receivable.

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Inventories Inventories are valued at average cost. The cost of governmental funds inventories are recorded as expenditures when consumed rather than when purchased because they are immaterial. Restricted Assets Restricted assets include current assets of enterprise funds and business-type activities that are legally restricted as to their use. The primary restricted assets are related to revenue bond and promissory note trustee accounts restricted for debt service and deposits held for refund. Restricted assets of the component unit consist of program income from revolving grants restricted as to use. Capital Assets and Depreciation The accounting treatment of property, plant and equipment (capital assets) depends on whether the assets are used in governmental fund type or proprietary fund operations and whether they are reported in the government-wide or fund financial statements. Government-Wide Statements In the government-wide financial statements, property, plant and equipment are accounted for as capital assets. The City’s capitalization threshold is $7,500. All capital assets are valued at historical cost, or estimated historical cost f actual is unavailable, except for donated capital assets, donated works of art and similar items which are recorded at their acquisition value at the date of donation. General infrastructure assets (such as roads, bridges, and traffic systems) acquired prior to July 1, 2002, are reported at estimated historical cost using deflated replacement costs. The cost of normal maintenance and repairs to these assets that do not add materially to the value of the asset or materially extend the assets’ useful lives are not capitalized. Interest costs, net of interest earned on any invested capital debt proceeds, are capitalized when incurred by proprietary funds. Depreciation of all exhaustible capital assets is recorded as an operating expense in proprietary fund financial statements and an allocated expense in the Statement of Activities, with accumulated depreciation reflected in the Statement of Net Position. Depreciation is provided over the assets’ estimated useful lives using the straight-line method of depreciation. The range of estimated useful lives by type of asset is as follows:

Buildings 15 - 50 years Other Improvements 5 - 50 years Infrastructure 50-100 years Equipment and vehicles 2 - 40 years Water rights 25-50 years

In the governmental fund financial statements, capital assets acquired are accounted for as capital outlay expenditures. Long-Term Debt Accounting treatment of long-term debt varies depending upon the source of repayment and the measurement focus applied and whether the debt is reported in the government-wide or fund financial statements. All long-term debt to be repaid from governmental activities, business-type activities, proprietary fund and component unit resources are reported as liabilities as incurred. The long-term debt consists primarily of accrued compensated absences, general obligation bonds payable, and revenue bonds payable. This long-term debt is reported net of unamortized premiums and discounts. Amounts deferred from refundings and shown as deferred inflows or outflows. Long-term debt of governmental funds is not reported as liabilities in the fund financial statements. The debt proceeds are reported as other financing sources and payment of principal and interest reported as expenditures.

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Compensated Absences Under terms of union contracts and City personnel policies, City employees are granted vacation and sick leave in varying amounts. In the event of termination, a civilian employee is paid for accumulated vacation up to 300 hours earned. Upon retirement, 33-1/3% of accumulated sick leave up to a maximum of 300 hours is converted to vacation time for non-union employees, subject to certain limitations. For firemen, sick leave hours are converted three to one to vacation hours not to exceed 400 hours at retirement plus 480 maximum vacation (suppression) and 288 maximum vacation (non-suppression). For police officers, sick leave hours are converted two to one with a maximum of 400 hours plus maximum of 320 vacation hours at retirement. The estimated liabilities for vested benefits also include salary-related payments such as employment taxes. Compensated absences are reported as accrued in the government-wide, proprietary, fiduciary and component unit financial statements. Governmental funds report only the matured compensated absences payable to currently terminating employees; however, the compensated absences obligation is reported as a fund balance reserve in compliance with the State Constitution. Deferred Outflow/Inflows of Resources In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. At the government fund level, the City does not recognizes any deferred outflows. At the enterprise fund level and government-wide level, the City recognizes deferred outflows related a refunding to and deferred amounts related to pensions. In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period (s) and so will not be recognized as an inflow of resources (revenue) until that time. The government has at the fund level only one type of item, which arises only under a modified accrual basis of accounting that qualifies for reporting in this category. Accordingly, the item, unavailable revenue, is reported only in the governmental funds balance sheet. The governmental funds report unavailable revenues from two sources: property taxes and special assessments. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available. At the government wide level, deferred inflows are reporting the fair value of hedging a derivative and the amounts related to pensions. Equity Classifications Government-Wide and Proprietary Fund Financial Statements: Equity is classified as net position and displayed in three components:

a. Net investment in capital assets - Consists of capital assets including restricted capital assets, net of accumulated depreciation and reduced by the outstanding balances of any bonds, mortgages, notes or other borrowings that are attributable to the acquisition, construction, or improvement of those assets.

b. Restricted net position - Consists of net position with constraints placed on the use either by 1) external groups such as creditors, grantors, contributors, or laws or regulations of other governments, or 2) law through constitutional provisions or enabling legislation.

c. Unrestricted net position - All other net position that does not meet the definition of “restricted” or “net investment in capital assets”.

It is the City’s policy to first use restricted net position prior to the use of unrestricted net position when an expense is incurred for purposes for which both restricted and unrestricted net position are available.

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Governmental Fund Financial Statements:

Governmental fund equity is classified as fund balance. Fund balance is further classified as nonspendable, restricted, committed, assigned and unassigned. These classifications are defined as:

a) Nonspendable-includes amounts that cannot be spent because they are either (a) not in spendable form or (b) legally or contractually required to be maintained intact.

b) Restricted-consists of fund balance with constraints placed on the use of resources either by (1) external groups such as creditors, grantors, contributors, or laws or regulations of other governments,

or (2) laws through constitutional provisions or enabling legislation. c) Committed-included amounts that can only be used for specific purposed pursuant to constraints

imposed by formal action of the city’s highest level of decision-making authority. The City’s highest level of decision-making authority is made by ordinance. City Council adopts an ordinance that establishes this constraint.

d) Assigned-includes amounts that are constrained by the City’s intent to be used for specific purposed but are neither restricted nor committed. Assignments of fund balance may be made by city council action or management decision when the city council has delegated that authority. Assignments for transfers and interest income for governmental funds are made through budgetary process.

e) Unassigned-represents fund balance that not been assigned to other funds and has not been restricted, committed, or assigned to specific purposes within the general fund. The general fund is the only fund that reports a positive unassigned fund balance.

It is the City’s policy that expenditures for which more than one category of fund balance could be used, that the order of use is: restricted, committed, assigned and unassigned. The City Council adopted the budget which designates the amount to the specific categories. In an effort to ensure the continuance of sound financial management of public resources, the City of Edmond’s Unassigned Fund Balance within the General Fund will be maintained to provide the City with sufficient working capital and a comfortable margin of safety to address emergencies, sudden loss of revenue or operating needs, and unexpected downturns. This policy established the amounts the City will strive to maintain in its General Fund unassigned balance, the conditions under which fund balance may be spent, and the method by which fund balance will be restored. These amounts are expressed as goals, recognizing that fund balance levels can fluctuate from year to year in the normal course of operations for any local government. The City will strive to maintain an Unassigned Fund Balance in the General Fund of (10%). This is determined by adding all new budgeted revenues, plus the Edmond Public Works Authority’s transfers-in, divided by the Unassigned Fund Balance. It is management’s express intent to identify a “not-to-exceed” amount of $1,000,000 as part of the 10% minimum fund balance for unexpected, large-scale events where damage in excess of $250,000 is incurred and immediate, remedial action must be taken to protect the health and safety of residents (e.g. floods, fires, storm damage). Of the $1,000,000 part of the General Fund’s Unassigned Fund Balance, it is management’s intent to not use any portion of this balance unless such emergencies occur. It is the goal of the City to limit use of any Unassigned Fund balances less than 10% to address non-recurring needs, otherwise approved by the City Council. Unassigned Fund balances of less than the 10% minimum as described above shall not normally be applied to recurring annual operating expenditures. Unassigned balances within the General Fund may, however, be used to allow time for the city to restructure its operations in a deliberate manner, but such use will only take place in the context of long-term financial planning. 1.E. INTERNAL AND INTERFUND BALANCES AND ACTIVITIES In the process of aggregating the financial information for the government-wide financial, some amounts reported as interfund activity and balances in the fund financial statements have been eliminated or reclassified.

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Government-Wide Financial Statements: Interfund activity and balances, if any, are eliminated or reclassified in the government-wide financial statement as follows:

a. Internal balances - amounts reported in the fund financial statements as interfund receivables and payables are eliminated in the governmental and business-type activities columns of the statement of net position, except for the net residual amounts due between governmental and business-type activities, which are reported as Internal Balances.

b. Internal activities - amounts reported as interfund transfers in the fund financial statements are

eliminated in the government-wide statement of activities except for the net amount of transfers between governmental and business-type activities, which are reported as Transfers - Internal Activities. The effects of interfund services between funds are not eliminated in the statement of activities.

c. Primary government and component unit activity and balances - resource flows between the primary

government (the City and EPWA) and the discretely-presented component units (the Historical Preservation Trust and EEDA) are reported as if they were external transactions.

Fund Financial Statements: Interfund activity, if any, within and among the governmental, proprietary fund and fiduciary categories is reported as follows in the fund financial statements:

1. Interfund loans - amounts provided with a requirement for repayment are reported as interfund receivables and payables.

2. Interfund services - sales or purchases of goods and services between funds are reported as revenues and expenditures/expenses.

3. Interfund reimbursements - repayments from funds responsible for certain expenditures/expenses to

the funds that initially paid for them are not reported as reimbursements but as adjustments to expenditures/expenses in the respective funds.

4. Interfund transfers - flow of assets from one fund to another where repayment is not expected are

reported as transfers in and out. 1.F. REVENUES, EXPENDITURES AND EXPENSES Sales Tax The City levies a three and three-fourth cent sales tax on taxable sales within the City. The sales tax is collected by the Oklahoma Tax Commission and remitted to the City in the month following receipt by the Tax Commission. The sales tax is recorded as follows:

2 cents recorded as revenue within the General Fund then transfers .75 of one cent to the Water Enterprise Fund as required by the bond indenture for debt service. Any unused portion is transferred back to the General Fund.

1/8 cent recorded as revenue within the Park Sales Tax Fund to account for operations and facility improvement costs of the City’s park and recreation system.

3/4 cent recorded as revenue within the 2000 Capital Improvement Tax Fund to account for capital improvements as recommended to the City Council by the Capital Financing Task Force.

1/4 cent recorded as revenue within the Fire Public Safety Limited Tax Fund to account for improvements to the fire department per voter approval.

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1/8 cent recorded as revenue within the Police Public Safety Limited Tax Fund to account for improvements to the police department per voter approval. 1/2 cent recorded as revenue within the 2012 Capital Improvement Tax Fund-PSC to account for building the new Public Safety Center and other capital projects per voter approval. This sales tax expired March 30, 2017. 1/2 cent recorded as revenue within the 2017 Capital Improvement Fund to account for capital projects approved by Capital Improvement Project Advisory Board. This became effective April 1, 2017.

Sales tax resulting from sales occurring prior to year-end and received by the City after year end have been accrued and is included under the caption Due from Other Governments because they represent taxes on sales occurring during the reporting period. Police and Fire Public Safety Funds Revenue An ordinance passed and approved by the citizens of Edmond requires that 30% of General Fund revenues (defined as taxes, licenses and permits, fines and forfeitures, charges for services, interest and miscellaneous revenues) be used for funding fire department operations and that 36.8% of these same General Fund revenues be used for funding police department operations. Effective July 1, 2001 all fire and police expenditures were accounted for in the limited purpose sales tax special revenue funds. The special revenue funds also receive sales tax (approved in the same ordinance referenced above) of one-fourth percent for the fire department and one-eighth percent for the police department. Those sales taxes can only be expended for additional personnel and equipment for additional personnel, additional equipment for firefighting and law enforcement purposes, and also for competitive compensation and benefits for existing and retired firefighters and officers. The ordinance further states that expenditures will not be charged against the sales tax revenues until the General Fund revenues have first been used or encumbered. Hospital Sales Trust Fund Principal and Income In 1981, the City sold the Edmond Memorial Hospital for approximately $7,200,000. The majority of the proceeds are invested in a trust account. According to trust agreement terms, the earnings and interest of the trust funds can be used by the City for capital improvements. The principal of the trust must also be used for capital improvements, but its use must first be approved by a vote of the citizens of the City. Edmond voters approved a half-cent sales tax on October 11, 2011 and allowed the City to loan itself money out of the $7.2 million Hospital Trust Fund, but is contingent upon paying the borrowed funds back with interest. Pension Contributions For purposes of measuring the net pension liability, deferred outflows or resources and deferred inflows of resources related to pensions, and pension expense, amounts and disclosures have been prepared using the accrual basis of accounting. Employee and employer contributions are recognized as System revenues in the period in which they are due to the plan. Benefits and refunds are recognized when due and payable pursuant to plan provisions. Investments are reported at fair value. Property Tax Under State law municipalities are limited in their ability to levy a property tax. Such tax may only be levied to repay principal and interest on general obligation bonded debt approved by voters and any court-assessed judgments. At the present time the City levies a property tax for court-assessed judgments only. Pledge of Future Revenues Sales Tax Pledge - The City has pledged three-fourth cents (or 20%) of future sales tax revenues to repay $84,350,000 of Series 2010, 2012, 2013, 2014, 2014B, 2015, and 2016 Sales Tax and Utility System Bonds. Proceeds from the bonds provided financing for capital assets. The bonds are payable from pledged sales tax revenues and further secured by net electric, water, wastewater, and sanitation revenues. The bonds are payable through 2021, 2023, 2023, 2024,

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2026, 2024, and 2047 respectively. The total principal and interest payable for the remainder of the life of these bonds is $155,465,849. Pledged sales taxes received in the current year were $12,587,120 for the bonds and the net utility revenues were $40,504,747. Debt service payments for the bonds of $15,578,982 for the current fiscal year were 123% of the pledged sales taxes and 29% of both pledged sales taxes and utility revenues. Utility Net Revenues Pledge – The City has also pledged future net electric, water, wastewater, and sanitation revenues to repay $84,990,000 of 2014, 2015, and 2016 Series Utility System Revenue Bonds and $3,726,484 of 2005 OWRB Notes Payable and $16,085,000 on the General Sales Revenue Note with Bank of America . Proceeds from the bonds and notes provided financing for utility system capital assets. The bonds are payable through 2047 while the notes are payable through 2024 and 2026. The total principal and interest payable for the remainder of the life of these bonds and notes is $113,978,338. The bonds are payable from the above-mentioned utility net revenues and are additionally secured with .75 of one cent (or 20%) of future sales tax revenues. If the net utility revenues are sufficient to service the debt, the pledged sales taxes are transferred back to the General Fund. The total pledged sales taxes for the current fiscal year of $12,587,120 were returned to the General Fund. The debt service payments on the bonds and notes this year were $9,619,153 which was 19.6% of pledged net utility revenues of $49,201,349 and 15.6% of both pledged utility revenues and pledged sales taxes. Expenditures and Expenses In the government-wide statement of activities, expenses, including depreciation of capital assets, are reported by function or activity. In the governmental fund financial statements, expenditures are reported by class as current (further reported by function), capital outlay and debt service. In proprietary fund financial statements, expenses are reported by object or activity. Fiduciary funds report additions and deductions to net position. 1.G. USE OF ESTIMATES The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts and disclosures; accordingly, actual results could differ from those estimates. 1.H. NEW ACCOUNTING PRONOUNCEMENTS Effective July 1, 2016, the City implemented GASB Statement No. 77, Tax Abatement Disclosures - GASB 77 was issued in August 2015, and establishes financial reporting standards for tax abatement agreements entered into by state and local governments. The disclosures required by this Statement encompass tax abatements resulting from both (a) agreements that are entered into by the reporting government and (b) agreements that are entered into by other governments and that reduce the reporting government’s tax revenues. The requirements of this Statement are effective for financial statements for periods beginning after December 15, 2015. The City has included additional disclosures as it relates to this statement. NOTE 2. STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY By its nature as a local government unit, the City and its component units are subject to various federal, state and local laws and contractual regulations. An analysis of the City’s compliance with significant laws and regulations and demonstrations of its stewardship over City resources follows. 2.A. DEFICIT FUND BALANCES OR NET POSITION Title 11, Section 17-211 of the Oklahoma Statutes prohibits the creation of a deficit fund balance in any individual fund of the City (excluding public trusts). At June 30, 2017, the City reported a deficit in the CDBG Entitlement Fund. 2.B. DEPOSITS AND INVESTMENTS REQUIREMENTS The Treasurer is authorized to invest funds in such securities as provided by Oklahoma State Statutes. The City’s General/Operating and Public Works Authority Funds Investment Policy may be more restrictive than that allowed by state statute. The securities authorized by the approval of this policy shall be:

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a. Direct obligations of the United States Government, its agencies or instrumentalities to the payment of which the full faith and credit of the Government of the United States is pledged or obligations to the payment of which the full faith and credit of the State of Oklahoma is pledged; or

b. Collateralized or insured certificates of deposits of savings and loan associations, banks, savings banks and

credit unions located in this state, when the certificates of deposit are secured by acceptable collateral as provided in Oklahoma State Title 62, Section 517.5 or fully insured certificates of deposit at banks, savings banks, savings and loan associations and credit unions located out of state; or

c. Savings accounts or saving certificates of savings and loan associations, banks, and credit unions, to the

extent that the accounts or certificates are fully insured by the Federal Deposit Insurance Corporation; or

d. Investments as authorized by Oklahoma State Title 62, Section 348.3 which are fully collateralized in investments specified in paragraphs 1 through 3 of this section, and where the collateral has been deposited with a trustee or custodian bank in an irrevocable trust or escrow account established of such purposes; or

e. County, municipal or school district direct debt obligations for which an ad valorem tax may be levied or

bond and revenue anticipation notes, money judgments against such county, municipality or school district ordered by a court of record or bonds or bond and revenue anticipations notes issued by a public trust for which such county, municipality or school district is a beneficiary thereof. All collateral pledged to secure public funds shall be valued at no more than market value. The income received from the investment may be place in the general fund of the governmental subdivision to be used for general governmental operations, the sinking fund, the building fund, or the fund from which the investment was made.

f. Obligations of the United States government, its agencies and instrumentalities;

g. Collateralized or insured certificates of deposits and other evidences of deposit at banks, saving banks,

savings and loan associations and credit unions located within the state; or full insured certificates of deposit and banks, savings banks, savings and loan associations and credit unions located out of state;

h. Negotiable certificates of deposit issued by a nationally or state-charted bank, savings bank, a savings and

loan association or a state-licensed branch of a foreign bank. Purchases of negotiable certificates of deposits shall not exceed ten percent (10%) of the surplus funds of the city or county which may be invested pursuant to this section. Not more than one-half (1/2) of the ten percent (10%) limit shall be invested in any one financial institution specified in this paragraph;

i. Prime banker’s acceptances which are eligible for purchase by the Federal Reserve System and which do

not exceed two hundred seventy (270) days’ maturity. Purchases of prime banker’s acceptances shall not exceed ten percent (10%) of the surplus funds of the city or county which may be invested pursuant to this section. Not more than one-half (1/2) of the ten percent (10%) limit shall be invested in any one commercial bank pursuant to this paragraph;

j. Prime commercial paper which shall not have a maturity that exceeds one hundred eighty (180) days nor

represent more than ten percent (10%) of the outstanding paper of an issuing corporation. Purchases of prime commercial paper shall not exceed seven and one-half percent (7 ½ %) of the surplus funds of the city or county which many be invested pursuant to this section; and

k. Repurchase agreements that have underlying collateral consisting of those items specified in paragraphs a

through e of this subsection.

l. Money market funds regulated by the Securities and Exchange Commission and which investments consist of those items and those restrictions in paragraphs 1 through 6 of this subsection.

Public trusts created under O.S. Title 60 and pension trust funds are not subject to the above noted investment limitations and are primarily governed by any restrictions in their trust or bond indentures.

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2.C. DEBT RESTRICTIONS AND COVENANTS Notes Payable The loan agreement with the Oklahoma Water Resources Board relating to the interim construction note payable of the Edmond Public Works Authority contains a number of financial restrictions or covenants. These include covenants requiring a flow of funds through special accounts and a note payable debt service coverage requirement. The note agreement requires net revenues of the system plus pledged and transferred sales tax to be at least 125% of maximum annual debt service. The Note indenture relating to the 2013 General Sales Tax Revenue note payable of the Edmond Public Works contains a number financial restrictions or covenants. Revenue Bond Debt The bond indentures relating to the revenue and sales tax bond issues of the Edmond Public Works Authority and the City contain a number of financial restrictions or covenants. These include covenants requiring a flow of funds through special accounts, required reserve account balances and revenue bond debt service coverage requirement. The 2010, 2012, 2013, 2014, 2014B, 2015, and 2016 series sales tax and utility revenue bond indentures require (1) a reserve account balance $8,335,000 and (2) net revenues plus pledged and transferred sales tax to be at least 100% of the maximum annual debt service requirements. The City complied with these covenants for the fiscal year ended June 30, 2017.

NOTE 3. DETAIL NOTES - TRANSACTION CLASSES/ACCOUNTS

The following notes present detail information to support the amounts reported in the basic financial statements for its various assets, liabilities, equity, revenues and expenditures/expenses. 3.A. DEPOSIT AND INVESTMENT RISKS Primary Government: The City of Edmond, including its blended component unit held the following deposits and investments at June 30, 2017.

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Fair Value

Type Fair Value Rating Catego ry (3) Demand Les s Than One 1 - 5 6 - 10

Demand acco unts 37,343,450$ n/a n/a 37,343,450$ -$ -$ -$

Time depo s its 49,676,054 n/a n/a - 28,450,000 21,226,054 -

Mo ney marke t acco unts 67,304,607 ** n/a - 67,304,607 - -

U.S . Treas ury Obliga tio ns 7,339,736 (1) Level I - 5,159,371 2,180,365 -

U.S . Go vernment s po ns o red ente rpris es 115,563,959 (2) Level II - 56,609,554 58,954,405 -

Mutua l Funds -fixed inco me 17,343,863 ** Level I - - - 17,343,863

Sub-to ta l 294,571,669 37,343,450$ 157,523,532$ 82,360,824$ 17,343,863$

Mutua l Funds :

Alte rna tive 12,139,053 n/a Level I

Equity Funds 38,844,491 n/a Level I

Sub-to ta l Mutua l Funds 50,983,544

Co mmo n and prefe rred s to ck 1,010,299 n/a Level I

To ta l Inves tments 346,565,512$

Reco ncilia tio n to Sta tement o f Net P o s itio n:

Cas h and cas h equiva lents 44,866,588$

Inves tments 153,387,758

Current res tric ted cas h and cas h equiva lents 58,649,557

Current res tric ted inves tments 4,917,530

No ncurrent res tric ted cas h and cas h equiva lents 6,469,583

No ncurrent res tric ted inves tments 7,318,422

P ens io n re tirement fund as s e ts 70,369,620

Agency fund cas h and inves tments 586,454

346,565,512$

** Unra ted

Maturities in Years

(1) U.S. obligations include Treasury bills, Treasury notes, and Treasury bonds. U.S. obligations are backed

by the full power of the United States government and are guaranteed by the full faith and credit of the United States government.

(2) U.S. government sponsored enterprise (GSE ) securities are debt issued by a financial intermediary established by the federal government to fund loans for a public purpose. GSE’s lack the explicit backing of the U.S. government, but are federally chartered entities. GSE securities are listed below with the corresponding credit ratings:

GSE Name S & P Rating Moody Rating Federal National Mortgage Association AA+ Aaa (FNMA or “Fannie Mae”) Federal Home Loan Mortgage Corporation AA+ Aaa (FHLMC or “Freddie Mac”) Federal Home Loan Bank (FHLB) AA+ Aaa Federal Farm Credit Banks (FFCB) AAA Aaa Federal Agricultural Mortgage Corporation AAA Aaa (FAMC or “Farmer Mac”)

(3) The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs.

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June 30, 2017

Custodial Credit Risk – Exposure to custodial credit risk related to deposits exists when the City holds deposits that are uninsured and uncollateralized; collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the City’s name; or collateralized without a written or approved collateral agreement. Exposure to custodial credit risk related to investments exists when the City holds investments that are uninsured and unregistered, with securities held by the counterparty or by its trust department or agent but not in the City’s name.

The City’s policy as it relates to custodial credit risk is to secure its uninsured deposits with collateral, valued at no more than market value, at least at a level of 102% of the uninsured deposits and accrued interest thereon. The investment policy also limits acceptable collateral to U.S. Treasury securities and direct debt obligations of municipalities, counties, and school districts in the state of Oklahoma. As required by Federal 12 U.S.C. Section 1823(e), all financial institutions pledging collateral to the City must have a written collateral agreement approved by the board of directors or loan committee. At June 30, 2017, the City was not exposed to custodial credit risk as defined above. Investment Credit Risk – The City’s investment policy limits investments to those with a maturity no more than five years from the date of purchase. These investment limitations are described in Note 2B. Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. The City has no formal policy limiting investments based on credit rating, but discloses any such credit risk associated with their investments by reporting the credit quality ratings of investments in debt securities as determined by nationally recognized statistical rating organizations—rating agencies—as of the year end. Unless there is information to the contrary, obligations of the U.S. government or obligations explicitly guaranteed by the U.S. government are not considered to have credit risk and do not require disclosure of credit quality. The credit ratings of other City investments are listed in the schedule above. The fair value of the City’s forward sales agreements are fully exposed to credit risk. The forward sales agreements require the counterparty to notify the trustee, EPWA, and the bond insurer if any of the long-term unsecured outstanding debt of the guarantor falls below A- by S&P and below A3 by Moody’s or is unrated by either rating agency. Upon such notice, the trustee or EPWA may (1) direct the counterparty to either assign the agreements to an acceptable transferee, (2) provide a guaranty issued by an acceptable guarantor, or (3) terminate the agreements without penalty. Investment Interest Rate Risk – Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an investment. The City’s investment policy limits investments to those with a maturity no more than five years from the date of purchase, except for reserve funds, as a means of managing exposure to fair value losses arising from increasing interest rates. The City discloses its exposure to interest rate risk by disclosing the maturity dates of its various investments. The derivative instruments mature between 5 and 8 years.

Concentration of Investment Credit Risk - Exposure to concentration of credit risk is considered to exist when investments in any one issuer represent a significant percent of total investments of the City (any over 5% are disclosed). Investments issued or explicitly guaranteed by the U.S. government and investments in mutual funds, external investment pools, and other pooled investments are excluded from this consideration. At June 30, 2017, the City had a total portfolio concentration of credit risk in the following investments: FAMC 1.0%, FFCB 11.4%, FHLB 21.0%, FHLMC 5.0%, FNMA 3.0%.

Pension Plan Investments:

The Plan policy provides that assets be invested to provide for total return. The plan shall be invested in a diversified portfolio, consisting primarily of common stocks, bonds, cash equivalents, and other investments, which may reflect varying rates of return. The overall rate of return objective of the portfolio is a reasonable “real” rate, consistent with the risk levels established by the Pension Board. The minimum acceptable long-term rate of return over a full market cycle (3 to 5 years) is that which equals or exceeds the actuarial assumptions. The Pension Board has also established an annual target return objective, which may be changed from time to time, but is currently 7.25 percent, net of fees. This return objective currently meets the actuarial assumption of 7.25%. Asset allocation guidelines for the Plan are as follows:

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June 30, 2017

Class Target Percent June 2017 Present

Fixed Income 22% 22%

Large Cap Equities 22% 22%

Small Cap Equities 7% 7%

International Equities 17% 17%

Emerging Market Equities 10% 10%

Real Estate 5% 5%

Commodities 4% 4%

Master Limited Partnerships 10% 10%

Other 3% 3% Rate of return. For the year ended June 30, 2017, the annual money-weighted rate of return on pension plan investments, net of pension plan investment expense, was 10.99 percent. The money-weighted rate of return expresses investment performance, net of investment expense, adjusted for the changing amounts actually invested.

Component Units:

Total bank deposits of the EEDA component unit were $386,349 at June 30, 2017 and were properly insured and collateralized. In addition, deposits of the Historical Preservation Trust of $89,184 were fully collateralized.

Derivatives - Investment Securities Forward Sale Contract: The City has entered into multiple forward contracts for the continuous investment of various debt service and reserve funds in “eligible securities”. “Eligible securities” are defined in the various forward contracts as those securities generally allowable as investments by municipalities under Oklahoma law. By entering into these agreements, the City seeks to ensure fixed rates of return while providing cash flow streams to match related principal and interest payments. No cash was paid or received when the contracts were initiated. The notional (or contract) amounts vary over the life of the contracts along with the balances in the funds. With regards to debt service funds, the notional amount at each delivery date is the amount the City is required to maintain on deposit in the Debt Service Fund pursuant to the bond indenture of the associated debt. The notional amount for forward contracts related to reserve funds is the reserve fund balance available for investment; not to exceed the reserve requirement of the associated debt. The change in fair value is reported as deferred inflow of resources.

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June 30, 2017

Associated Debt

Effective Date

Termination Date

Contract Interest Rate

Change in Fair Value

Fair Value at June 30, 2017 Counterparty

Credit Rating

Governmental activities:

2010 Sales Tax & Utility Revenue Bonds:

Reserve Fund 5/13/2003 7/1/2021 4.570% (111,680) 446,553 JPMorgan A+




Debt Service 8/24/2004 7/1/2024 4.500% (24,149) 185,292 JPMorgan A+


Total governmental activities: (265,095)$ 1,479,749$

Business-type Activities: 2014 Sales Tax & Utility Revenue Bonds:

Debt Service 8/24/2004 7/1/2024 4.500% (21,752) 166,908 JPMorgan A+


Total business-type activities: (82,675)$ 597,883$

Total (347,770)$ 2,077,632$

Fair value was determined using expected cash flows discounted to the treasury curve at June 30, 2017. Credit risk – The counterparty to the forward sale contract derivative agreements is JPMorgan serving as guarantor. At June 30, 2017, the counterparty’s credit ratings were A+. Termination risk – The City or its counterparties are subject to termination risk if the bonds for which the debt service and reserve funds relate are redeemed, refunded, or defeased. If the bonds are redeemed, refunded or defeased in whole, then immediately upon payment of the termination value then the agreement shall terminate. If the bonds are redeemed or defeased in part, then the Termination Value shall be determined based on the portion of the agreement which will terminate and immediately upon payment of the termination value, this agreement shall terminate in part and the balance of this agreement shall remain in effect, the Reserve Requirement shall be amended to reflect that portion of the agreement that has been terminated. 3.B. RECEIVABLES Accounts Receivable Accounts receivable of the business-type activities consist of customers utilities services provided, both billed and unbilled, due at year end, reported net of allowance for uncollectible amounts. The governmental activities receivables include fines, other taxes, and miscellaneous receivables as follows:

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June 30, 2017

Business-Type Activities:


FundSanitation

Fund Drainage Fund Total

Utilit ies Receivable 15,121,714$ 3,932,165$ 1,825,773$ 1,052,201$ 225,908$ 22,157,761$

Less:allowance for uncollectible accounts (1,089,798) (184,770) (187,046) (96,364) (34,491) (1,592,469)

Utilit ies receivable, net of allowance 14,031,916$ 3,747,395$ 1,638,727$ 955,837$ 191,417$ 20,565,292$

Other Receivables-Business-Type Activities 155,537

Total Accounts Receivable-Business-Type Activities 20,720,829$

Governmental Activities:

Fines ReceivableOther Taxes Receivable

Park & Recreation Receivable

Miscellaneous Receivables Total

Other receivables 2,017,187$ 539,177$ 56,754$ 321,874$ 2,934,992$

Less: allowance for uncollectible accounts (1,527,616) - - - (1,527,616)

Other receivables, net of allowance 489,571$ 539,177$ 56,754$ 321,874$ 1,407,376$

3.C. RESTRICTED ASSETS The amounts reported as restricted assets of the business-type activities are comprised of assets held by the trustee bank on behalf of the EPWA related to their required revenue note and bond accounts, deposits held for refund and EEDA restricted accounts related to revolving loan program income. Governmental activity restricted assets are comprised of assets held by a trustee bank on behalf of the City related to required revenue bond accounts.

Cash and cash equivalents Investments

Cash and cash equivalents Investments Total

Primary Government

Governmental Activities:

Revenue bond trustee accounts 10,863,966$ -$ 2,788,521$ 5,156,996$ 18,809,483$

Total Governmental Activities 10,863,966$ -$ 2,788,521$ 5,156,996$ 18,809,483$

Business-type Activit ies:

Revenue bond trustee accounts 7,482,741$ 240,394$ 3,681,062$ 2,161,426 13,565,623$

Deposits held for refund - 4,558,791 - - 4,558,791

Deposits held for construction 40,302,850 118,345 - - 40,421,195

Total Business-type Activities 47,785,591$ 4,917,530$ 3,681,062$ 2,161,426$ 58,545,609$

NoncurrentCurrent

Component Unit: The Edmond Economic Development Authority (EEDA) restricted assets at year end included the following:

Current

Cash and cash equivalents, program income 41,270$

Total 41,270$

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June 30, 2017

3.D. CAPITAL ASSETS Capital asset activity for the fiscal year ended June 30, 2017 was as follows:

Balance a t J uly 1, 2016 Additio ns Deduc tio ns

Balance a t J une 30, 2017

Go v e rnm e nta l a c t iv it ie s :

No n-depreciable :

Land 15,207,778$ 2,505,104$ -$ 17,712,882$

Co ns truc tio n-in-pro gres s 24,855,083 26,996,032 (16,417,511) 35,433,604

To ta l no n-deprec iable as s e ts a t his to rica l co s t 40,062,861 29,501,136 (16,417,511) 53,146,486

Deprec iable :

Buildings 109,866,196 700,559 - 110,566,755

Impro vements 34,322,895 6,392,449 - 40,715,344

Machinery and equipment 53,024,110 3,962,760 (2,405,378) 54,581,492

Infras truc ture 308,372,348 9,048,962 - 317,421,310

To ta l deprec iable as s e ts a t his to rica l co s t 505,585,549 20,104,730 (2,405,378) 523,284,901

Les s accumula ted deprec ia tio n

Buildings (20,396,569) (3,258,003) - (23,654,572)

Impro vements (21,680,719) (2,102,624) - (23,783,343)

Machinery and equipment (29,129,868) (3,161,548) 1,638,293 (30,653,123)

Infras truc ture (160,862,327) (9,419,071) - (170,281,398)

To ta l accumula ted deprec ia tio n (232,069,483) (17,941,246) 1,638,293 (248,372,436)

Ne t deprec iable as s e ts 273,516,066 2,163,484 (767,085) 274,912,465

Go vernmenta l ac tivities capita l a s s e ts , ne t 313,578,927$ 31,664,620$ (17,184,596)$ 328,058,951$

B us ine s s - type a c t iv it ie s

No n-depreciable :

Land 2,350,922$ 220,270$ -$ 2,571,192$

Co ns truc tio n-in-pro gres s 18,761,662 20,903,437 (4,903,989) 34,761,110

To ta l no n-deprec iable as s e ts a t his to rical co s t 21,112,584 21,123,707 (4,903,989) 37,332,302

Deprec iable :

Buildings 30,889,568 - - 30,889,568

Impro vements 16,087,047 - - 16,087,047

Machinery and equipment 8,997,224 320,019 (62,536) 9,254,707

Intangible wate r rights 30,954,585 - - 30,954,585

Utility pro perty 310,215,994 11,382,121 - 321,598,115

To ta ls depreciable as s e ts a t his to rica l co s t 397,144,418 11,702,140 (62,536) 408,784,022

Les s accumula ted deprec ia tio n

Buildings (9,523,703) (939,868) - (10,463,571)

Impro vements (5,969,543) (223,193) - (6,192,736)

Machinery and equipment (5,318,239) (457,581) 49,247 (5,726,573)

Intangible wate r rights (16,760,718) (644,232) - (17,404,950)

Utility pro perty (147,960,338) (10,663,349) - (158,623,687)

To ta l accumula ted deprecia tio n (185,532,541) (12,928,223) 49,247 (198,411,517)

Ne t deprec iable as s e ts 211,611,877 (1,226,083) (13,289) 210,372,505

Bus ines s -type capita l a s s e ts , ne t 232,724,461$ 19,897,624$ (4,917,278)$ 247,704,807$

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June 30, 2017

Ba lance a t J uly 1, 2016 Additio ns Deduc tio ns

Balance a t J une 30, 2017

C o m po ne nt Units :

His to rica l P res e rvatio n Trus t:

No n-deprec iable :

Land 100,450$ -$ -$ 100,450$

Capita l as s e ts , no n-deprec iable 100,450 - - 100,450

Deprec iable :

Buildings 300,495 - - 300,495

To ta ls a t his to rica l co s t 300,495 - - 300,495

Les s accumula ted deprec ia tio n:

Machinery and equipment (205,715) (28,504) - (234,219)

To ta ls accumula ted deprec ia tio n (205,715) (28,504) - (234,219)

Capita l as s e ts , deprec iable ne t 94,780 (28,504) - 66,276

Capita l as s e ts , ne t 195,230$ (28,504)$ - 166,726$

Edmo nd Eco no mic Develo pment Autho rity:

Deprec iable :

Machinery and equipment 40,775$ 2,915$ (1,844)$ 41,846$

To ta ls a t his to rica l co s t 40,775 2,915 (1,844) 41,846

Les s accumula ted deprec ia tio n:

Machinery and equipment (30,847) (2,805) 1,844 (31,808)

To ta l accumula ted deprec ia tio n (30,847) (2,805) 1,844 (31,808)

Capita l as s e ts , ne t 9,928$ 110$ -$ 10,038$

Depreciation expense was charged to functions in the statement of activities as follows:

Depreciation expense charged to governmental activities:General government 956,247$

Public safety 2,308,332

Streets and highways 9,692,414

Culture and recreation 2,313,623

Health and welfare 254,748

In addition, depreciation on capital assets held by the City's internal service funds is charged to the various functions based on their usage of the assets 2,415,882

Total governmental activities depreciation expense 17,941,246$

Depreciation expense charged to business-type activities:Electric 3,149,155$

Water 6,945,465

Sanitation 20,865

Wastewater 2,380,817

Arcadia Lake 205,485

Drainage 66,375

Golf Course 160,061

Total business-type activities depreciation expense 12,928,223$

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June 30, 2017

3.E. LONG-TERM DEBT The reporting entity's long-term debt is segregated by the amounts involving governmental activities, business-type activities and component units. Governmental Activities Long-Term Debt As of June 30, 2017, the governmental activities long-term debt consisted of the following:

Accrued Compensated Absences:

Accrued compensated absences reported in the governmental activities are comprised of accrued vacation leave. Current portion $ 375,435 Non-current portion 3,378,900 Total Accrued Compensated Absences $ 3,754,335

Revenue Bonds Payable:

2010 Series Sales Tax and Utility System Bonds, dated December 30, 2010, issued by the Edmond Public Works Authority, secured by utility revenues and pledged sales tax, interest rates at 2.84%, final maturity July 1, 2021. The bond’s $ 5,805,000 debt service is currently paid with the restricted sales tax.

2012 Refunding Series Sales Tax and Utility System Bonds, dated August 16, 2012, issued by the Edmond Public Works Authority, secured by utility revenues and pledged sales tax, interest rates at 2.06%, final maturity July 1, 2023. The bond’s 8,195,000

debt service is currently paid with the restricted sales tax.

2013 Series Sales Tax and Utility System Bonds, dated May 14, 2013, issued by the Edmond Public Works Authority, secured by utility revenues and pledged sales tax, interest rates at 1.68%, final maturity July 1, 2023. The bond’s 8,615,000 debt service is currently paid with the restricted sales tax. 2014 Refunding Series Sales Tax and Utility System Bonds, dated April 3, 2014, issued by the Edmond Public Works Authority, secured by utility revenues and pledged sales tax, interest rates at 2.47%, final maturity July 1, 2024. The bond’s 9,488,947

debt service is currently paid with the restricted sales tax. 2014B Refunding Series Sales Tax and Utility System Bonds, dated December 9, 2014 issued by the Edmond Public Works Authority, secured by utility revenues and pledged sales tax, interest rate at 2.25%, final maturity July 1, 2026. The bond’s 17,155,000 debt service is currently paid with restricted sale tax.

Total Revenue Bonds Payable $49,258,947 Add: Unamortized Bond Premium 3,425,895 Less: Deferred amount on Refunding (1,057,729) Total Revenue Bonds Payable (Net) $ 51,627,113 Current portion, net $ 6,701,393

Non-current portion, net 45,983,449 Deferred Outflow (1,057,729) Total Revenues Bonds Payable, net $ 51,627,113

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June 30, 2017

Business-type Activities Long-Term Debt As of June 30, 2017, the long-term debt payable from enterprise fund resources consisted of the following: Revenue Bonds Payable:

2014 Refunding Series Sales Tax and Utility System Bonds, dated April 3, 2014, issued by the Edmond Public Works Authority, secured by utility revenues and pledged sales tax, interest rates at 2.47%, final maturity July 1, 2024. $8,196,744 2015 Refunding Series Sales Tax and Utility System Bonds, dated April 2, 2015, issued by the Edmond Public Works Authority, secured by utility revenues and pledged sales tax, interest rates at 1.87%, final maturity July 1, 2023. 16,110,000 2016 Series Sales Tax and Utility System Bonds, dated July 5, 2016, issued by the Edmond Public Works Authority, secured by utility revenues and pledged sales tax, interest rates at 3.00% to 5.00%, final maturity July 1, 2046. 41,795,000

Total Revenues Bonds Payable 66,101,744 Plus: Unamortized Premium 6,749,273 Deferred amount on refunding (596,974)

Total Revenues Bonds Payable (Net of unamortized discount) $ 72,254,043

Current portion, net $ 5,298,607 Non-current portion, net 67,552,410 Deferred Outflow (596,974) Total Revenues Bonds Payable, net $ 72,254,043

Notes Payable: 2005 C Series Construction Drinking Water SRF Promissory Note to Oklahoma Water Resources Board, original issue amount of $3,726,484, secured by utility revenues and pledged sales tax, administrative fee of .5%, final maturity September 15, 2024. $ 1,433,263 2013 Refunding General Sales Tax Revenue Note to Bank of America, original issue amount of $16,085,000 secured by utility revenues and pledged sales tax, interest rate of 2.86%, final maturity of July 1, 2026. 12,255,000 $ 13,688,263

Current portion $ 1,341,102 Non-current portion 12,347,161 Total Note Payable $ 13,688,263

Capital Lease Obligations Payable: Capital lease with Oklahoma Municipal Power Authority related to Loop Lease Program (Latham), original lease amount of $17,446, payable in monthly installments of $215, interest at 1%, final maturity July 2021. $ 10,118 Capital lease with Oklahoma Municipal Power Authority related to Loop Lease Program (Addison), original lease amount of $14,903, payable in monthly installments of $184, interest at 1%, final maturity March 2023. 12,144 $ 22,262

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June 30, 2017

Current portion $ 4,584 Non-current portion 17,678 Total Note Payable $ 22,262

Accrued Compensated Absences:

Accrued compensated absences reported in the business-type activities are comprised of accrued vacation leave:

Current portion $ 75,312 Non-current portion 677,808 Total Accrued Compensated Absences $753,120

Component Unit Long-Term Debt Accrued Compensated Absences:

Accrued compensated absences reported as a fund liability within the EEDA component unit statement of net position at June 30, 2017, are as follows:

Current portion $2,846 Non-current portion 25,614 Total Accrued Compensated Absences $28,460

Changes in Long-Term Debt - Primary Government and Component Units The following is a summary of changes in long-term debt for the year ended June 30, 2017:

Balance J uly 1, 2016 Additio ns Deductio ns

Ba lance J une 30, 2017

Amo unt due in o ne year

Go v e rnm e nta l A c t iv it ie s :

Revenue Bo nds P ayable 55,788,256$ -$ 6,529,309$ 49,258,947$ 6,701,393$

Accrued Co mpens ated Abs ences 3,609,506 2,717,415 2,572,586 3,754,335 375,435

59,397,762$ 2,717,415$ 9,101,895$ 53,013,282$ 7,076,828$

B us ine s s -type A c t iv it ie s :

No te P ayable 14,999,365$ -$ 1,311,102$ 13,688,263$ 1,341,102$

Capita l Leas e Obliga tio ns P ayable 39,013 - 16,751 22,262 4,584

Revenue Bo nds P ayable 28,716,894 41,795,000 4,410,150 66,101,744 5,298,607

Accrued Co mpens ated Abs ences 718,912 2,490,335 2,456,127 753,120 75,312

44,474,184$ 44,285,335$ 8,194,130$ 80,565,389$ 6,719,605$

C o m po ne nt Unit s :

Accrued Co mpens ated Abs ences 31,784$ 26,862$ 30,186$ 28,460$ 2,846$

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

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June 30, 2017

Debt Service Requirements to Maturity - Primary Government The annual debt service requirements to maturity for long-term debt as of June 30, 2017 are as follows:

Year Ending June 30, Principal Interest

2018 6,701,393$ 1,732,913$

2019 6,956,633 1,496,060

2020 7,194,765 1,249,816

2021 7,455,266 994,638

2022 6,115,246 774,476

2023-2026 14,835,644 1,241,563

Total 49,258,947$ 7,489,466$

Revenue Bonds Payable

Governmental-Type Activities

Year Ending June 30, Principal Interest Principal Interest Principal Interest

2018 1,341,102$ 349,368$ 5,298,607$ 2,671,399$ 4,584$ 201$

2019 1,381,102 315,223 3,223,367 2,492,493 4,632 153

2020 1,411,102 280,019 3,435,235 2,360,325 4,677 108

2021 1,451,102 243,859 3,579,734 2,215,338 4,726 59

2022 1,491,102 206,568 3,734,754 2,050,899 2,178 27

2023-2027 6,612,753 438,862 13,268,788 7,604,563 1,465 5

2028-2032 - - 6,005,000 5,639,725 - -

2033-2037 - - 7,440,000 4,198,000 - -

2038-2042 - - 9,055,000 2,553,900 - -

2043-2047 - - 11,061,259 829,050 - -

Total 13,688,263$ 1,833,899$ 66,101,744$ 32,615,692$ 22,262$ 553$

Notes Payable Capital Lease Obligations Payable

Business-Type Activities

Revenue Bonds Payable

Defeased Bonds Outstanding The City, through its various public trusts, has in substance defeased a number of outstanding bond issues by placing deposits in irrevocable trusts (escrow accounts) for the purchase of U.S. government securities to pay the principal and interest on the refunded bonds as they become due and payable. For financial reporting purposes, both the defeased bonds outstanding and the escrowed securities have been excluded from the financial statements. At year-end, the remaining outstanding defeased bonds were as follows:

Outstanding at June 30, 2017

Primary Government: Utility System Revenue Bonds, Series 1977 $40,000 Utility System Revenue Bonds, Series 2003B 940,000 Utility System Revenue Bonds, Series 2004 6,625,000 Sales Tax and Utility Revenue Bonds, Series 2004 9,030,000 Sales Tax and Utility Revenue Bonds, Series 2005 18,460,000 Utility System Revenue Bonds, Series 2005 17,510,000 Total Outstanding Defeased Bonds $52,605,000

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June 30, 2017

Component Unit - Conduit Debt The Edmond Economic Development Authority (EEDA) has issued bonds for various industrial development projects. The following bonds were outstanding at June 30, 2017:

Outstanding Original Issue June 30, 2017

EEDA - Student Housing Revenue Bonds 2001A (UCO Student Housing Foundation) $8,305,000 $6,230,000

EEDA - Revenue Note 2000 (UCO Music Lab Project)

(UCO Foundation) 1,135,000 531,709 $9,440,000 $6,761,709

The bonds and notes payable comprising the Authority’s indebtedness are not indebtedness of the State of Oklahoma, nor of the City of Edmond, nor is it a personal obligation of the Edmond Economic Development Authority trustees. These bonds are a limited obligation of the Authority payable solely from a portion of the Trust Estate consisting of the Authority bond and related Financing Agreement and other security outlined in the Mortgage or Loan Indentures. This debt is considered non-commitment (conduit) debt to the City and Authority since the debt payments are made solely from the notes receivable or financing agreement proceeds from Collegiate Foundation and UCO. Payments are made directly by the Collegiate Foundation and UCO to trustee banks who pay the bondholders. In the event of default by the Collegiate Foundation and UCO, the City or Authority has no obligation, in substance, to make any payments on the debt since the notes receivable, financing agreements and mortgages on the property with the industrial occupant are the only security for the debt. As a result of the non-commitment determination, the Authority’s indebtedness and related receivables from industrial occupants are not recorded in the financial statements.

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June 30, 2017

3.F. INTERFUND BALANCES AND ACTIVITIES

Primary GovernmentGovernmental Activities

General

Other Governmental

Funds

Total Governmental

FundsInternal Service

Funds

Total Governmental

Activities

DUE FRO M O THER FUNDSPrimary GovernmentGovernmental ActivitiesGeneral -$ -$ -$ -$ Police Public Safety Limited Tax - - - - -2000 Capital Improvement Fund - - - - -Other governmental funds 1,140,574 1,140,574 - 1,140,574 Total governmental funds 1,140,574 - 1,140,574 - 1,140,574Internal service funds - - - - - Total 1,140,574 - 1,140,574 - 1,140,574

Total due from other funds 1,140,574$ -$ 1,140,574$ -$ 1,140,574$

DUE TO O THER FUNDS

Primary GovernmentGovernmental Activities

General 18,016$ 1,124,811$ 1,142,827$ -$ 1,142,827$

Total governmental funds 18,016 1,124,811 1,142,827 - 1,142,827

Internal service funds - - - - -

Total governmental activities 18,016 1,124,811 1,142,827 - 1,142,827

Business Type Activities

Other enterprise funds - 2,253 2,253 - 2,253

Total business-type activities - 2,253 2,253 - 2,253

Total due to other funds 18,016$ 1,127,064$ 1,145,080$ -$ 1,145,080$

Reconciliation to Fund Financial Statements:

Due From Other Funds

Due to Other Funds

Net Internal Balances

Governmental Funds 1,140,574$ 1,142,827$ (2,253)$

Proprietary Funds 1,373,148 1,370,895 2,253

Total 2,513,722$ 2,513,722$ -$

Reconciliation to fund financial statements:

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June 30, 2017

Other Enterprise

Funds Total

DUE FRO M O THER FUNDSPrimary GovernmentGovernmental ActivitiesGeneral -$ -$ Fire Public Safety Limited Tax - - Police Public Safety Limited Tax - - 2000 Capital Improvement Fund - - Other governmental funds 2,253 2,253 Total governmental funds 2,253 2,253Internal service funds - - Total 2,253 2,253Business Type ActivitiesPWA-Electric 369,231 369,231 PWA-Water 69,221 69,221 PWA-Wastewater 36,925 36,925 Other enterprise funds 897,771 897,771 Total business-type activities 1,373,148 1,373,148

Total due from other funds 1,375,401$ 1,375,401$

DUE TO O THER FUNDS

Business Type Activities

PWA-Electric 470,496 470,496

PWA-Water 255,117 255,117

PWA-Wastewater 195,039 195,039

Other enterprise funds 450,243 450,243

Total business-type activities 1,370,895 1,370,895

Total due to other funds 1,370,895$ 1,370,895$

Primary GovernmentBusiness-type Activities

Interfund transfers for the year ended June 30, 2017 were as follows:

Transfer from Transfer to Amount Nature of Interfund Balance

* PWA Electric * General Fund 3,861,180$ Budgeted annual operating transfer

* PWA Water * General Fund 205,760 Budgeted annual operating transfer

* PWA Water * General Fund 12,587,120 Return of pledged sales tax

PWA Sanitation * General Fund 353,424 Budgeted annual operating transfer

* PWA Wastewater * General Fund 276,035 Budgeted annual operating transfer

Park Sales Tax * General Fund 100,000 Budgeted annual operating transfer

* General Fund * Fire Public Safety Limited Tax 15,885,555 Dedicated sales tax- ordinance

* General Fund * Police Public Safety Limited Tax 19,486,281 Dedicated sales tax- ordinance

* General Fund Capital Improvement Fund 48,000 Budgeted annual funding

* General Fund Art in Public Places 19,300 Funding for public art

* General Fund PWA Arcadia Lake 485,396 Debt service payments

* General Fund Citilink Fund 900,000 Budgeted annual operating transfer

* General Fund * PWA Water 12,587,120 Pledged sales tax- bond indenture

Hospital Sale T rust Fund * General Fund 1,010,000 Budgeted annual operating transfer

* 2012 Public Safety Capital Impr.Fun 2017 Captial Improvement Fund 268,210 Funding for public art

* 2000 Capital Improvement Fund Art in Public Places 25,500 Funding for public art68,098,881$

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June 30, 2017

Reconciliation to fund financial statements:

Transfer to Other Funds

Transfers from Other Funds

Governmental Funds:

General Fund 49,411,652$ 18,393,519$

Fire Public Safety Limited Tax Fund 15,885,554

Police Public Safety Limit Tax Fund - 19,486,282

2000 Capital Improvement Tax Fund 25,500 -

2012 Public Safety Center Tax Fund 268,210 -

Other Governmental Funds 1,110,000 361,010

Total Governmental Funds 50,815,362 54,126,365

Proprietary Funds:

Enterprise Funds:

Electric 3,861,180 -

Water 12,792,880 12,587,120

Wastewater 276,035 -

Other Enterprise Funds 353,424 1,385,396

Total Enterprise Funds 17,283,519 13,972,516

Totals 68,098,881$ 68,098,881$

Reconciliation to Statement of Activities:

Transfer to Other Funds

Transfer from Other Funds Net Transfers

Net transfers for governmental activit ies:

Governmental Funds (50,815,362)$ 54,126,365$ 3,311,003$ Total Net transfers for governmental activit ies (50,815,362)$ 54,126,365$ 3,311,003$

Net transfers for business-type activit ies:

Enterprise Funds (17,283,519)$ 13,972,516$ (3,311,003)$ Total Net transfers for business-type activit ies (17,283,519)$ 13,972,516$ (3,311,003)$

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

Transfer From Transfer To Amount Nature of Transfer

General Fund EEDA 572,420$ Operating subsidy

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June 30, 2017

3.G. FUND BALANCES AND NET POSITION The following table shows the net position restricted for other purposes shown on the Statement of Net Position:

Fund Restricted By Amount

Hospital Trust Enabling legislation 7,257,723$

Ambulatory Fund Enabling legislation 638,605 7,896,328$

Asset Forfeiture Statutory requirements 603,028$

Cemetery Care Fund Statutory requirements 74,593 677,621$

General Fund External contracts 2,660,047$

Fire Public Safety Limited Tax Fund External contracts 12,122,150

Police Public Safety Limited Tax Fund External contracts 5,993,091

2000 Capital Improvement Tax Fund External contracts 20,569,609

Senior Center Fund External contracts 241,824

Park Sales Tax Fund External contracts 559,909

Art in Public Places Fund External contracts 67,893

Roadway Improvement Fund External contracts 10,199

1996 Capital Improvement Fund External contracts 139,111

2012 Public Safety Center Tax Fund External contracts 1,418,697

Convention and Visitors Bureau Fund External contracts 58,498 43,841,028$

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June 30, 2017

The following table shows the fund balance classifications as shown on the Governmental Funds Balance Sheet in accordance with GASB Statement 54:

Genera l Fund

Fire P ublic Safe ty Tax

P o lice P ublic Safe ty Tax

2000 Capita l Impro vement Tax

2012 P ublic Safe ty Cente r

Tax

Other Go vernmenta l

Fund To ta l

Fund Balance

Res tric ted Fo r:

P o lice o pera tio ns -$ -$ 5,993,091$ -$ -$ -$ 5,993,091$

F ire o pera tio ns - 12,122,150 - - - - 12,122,150

Ho s pita l s a le trus t - - - - - 7,257,723 7,257,723

Ambulance s ervices - - - - - 638,605 638,605

Eco no mic deve lo pment - - - - - 58,498 58,498

Capita l impro vements - - - 20,569,609 2,197,190 2,703,101 25,469,900

S tree t impro vements - - - - - 10,199 10,199

Art in public places - - - - - 67,893 67,893

Culture and rec pro grams - - - - - 559,909 559,909

Cemete ry impro vements - - - - - 74,593 74,593

Senio r center pro grams - - - - - 241,824 241,824

P o lice -drug pro grams - - - - - 603,028 603,028

J uvenile co urt pro grams 665,570 - - - - - 665,570

S tree t and a lley o pera tio ns 1,668,558 - - - - - 1,668,558

Trans po rta tio n 115 - - - - - 115

Ro adway widening 325,804 - - - - - 325,804

Sub-to ta l res tric ted 2,660,047 12,122,150 5,993,091 20,569,609 2,197,190 12,215,373 55,757,460

Co mmitted fo r:


Sub-to ta l co mmitted - - - - - 3,444 3,444

As s igned fo r:

Capita l impro vements - - - 3,468,795 24,830 1,188,737 4,682,362

Culture and rec pro grams 60,966 - - - - 330,887 391,853

Cemete ry impro vements - - - - - 4,809 4,809

Art in public places - - - - - 7,626 7,626

S tree t impro vements - - - - - 884 884

P o lice o pera tio ns - - 1,039,085 - - - 1,039,085

F ire o pera tio ns - 762,288 - - - - 762,288

Eco no mic deve lo pment 829,435 - - - - 18,894 848,329

P o lice -drug pro grams - - - - - 35,171 35,171


Ambulance s ervices - - - - - 15,378 15,378

Supplement o f next fis ca l years budget 572,378 - - - - - 572,378

Sub-to ta l a s s igned 1,462,779 762,288 1,039,085 3,468,795 24,830 1,614,160 8,371,937

Unas s igned (defic it): 5,419,733 - - - - (50,046) 5,369,687

TOTAL FUND BALANCE 9,542,559$ 12,884,438$ 7,032,176$ 24,038,404$ 2,222,020$ 13,782,931$ 69,502,528$

Majo r Go vernmenta l Funds

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June 30, 2017

NOTE 4. OTHER NOTES 4.A. EMPLOYEE PENSION AND OTHER BENEFIT PLANS The City participates in three employee pension systems as follows:

Name of Plan/System Type of Plan

Oklahoma Police Pension and Retirement Fund Cost Sharing Multiple Employer - Defined Benefit Plan Oklahoma Firefighters Pension and Retirement Fund Cost Sharing Multiple Employer - Defined Benefit Plan City of Edmond Employees' Retirement System Single Employer - Defined Benefit Plan The aggregate net pension liability, deferred inflows, deferred outflows and pension expense for the plans at June 30, 2017:

Deferred Outflow Deferred Inflow Net Pension Liability Pension Expense

Police Pension 6,546,078$ 601,597$ 5,214,739$ 1,903,700$

Fire Pension 7,443,516 15,617 45,986,170 5,106,834

Single Employer Plan 11,399,646 162,005 19,919,368 4,469,949

Totals 25,389,240$ 779,219$ 71,120,277$ 11,480,483$

Reconciliation to government-wide financials;

Governmental 65,171,834$

Bussiness-type 5,754,480

Component unit 193,963

71,120,277$

Oklahoma Police and Firefighter's Pension and Retirement Systems The City of Edmond, as the employer, participates in two statewide cost-sharing multiple employer defined benefit plans on behalf of the police officers and firefighters. The systems are funded by contributions from participants, employers, insurance premium taxes, and state appropriations, as necessary. The following is a summary of eligibility factors, contribution methods, and benefit provisions.

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June 30, 2017

Oklahoma PolicePension and

Retirement System

Oklahoma FirefighterPension and Retirement

System

Obtaining separately issuedfinancial statements Eligibility to participate

Police Pension and Retirement1001 N.W. 63rd St., Suite 605 Oklahoma City, OK 73116-7335 All full-time officers, employed by a participating municipality, not less than 21 years of age or more than 45 years of age when hired.

Firefighters Pension & Retirement4545 N. Lincoln Blvd., Suite 265 Oklahoma City, OK 73105-3414 All full-time or voluntary firefighters of a participating municipality hired before age 45.

Authority establishing contribution obligations and benefits

State Statute State Statute

Employee's contribution rate(percent of covered payroll)

8%

9%

City's contribution rate (percent of covered payroll)

13%

14%

State obligation

State appropriation to fund the unfunded actuarial accrued liability

State appropriation to fund the unfunded actuarial accrued liability

Period required to vest

10 years

10 years

Eligibility and benefits fordistribution (full-time)

20 years credited service, 2.5% of final average salary multiplied by the years of credited service with a maximum of 30 years considered; if vested, at or after age 50, or after 10 but before 20 years of credited service, with reduced benefits.

20 years credited service 2.5% of final average salary multiplied by the years of credited service with a maximum of 30 years considered; if vested, at or after age 50, or after 10 but before 20 years of credited service, with reduced benefits.

Deferred retirement option

Yes, 20 years credited service with additional option to participate in a Back D.O.P

Yes, 20 years credited service with continued service for a maximum of 30 or more years.

Provisions for: Cost of living adjustments(normal retirement)

Yes Yes, if vested by 5/83

Death (duty, non-duty, postretirement)

Yes Yes

Disability (duty, non-duty) Yes YesCost of living allowances Yes Yes

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June 30, 2017

Trend Information Oklahoma Police Pension and Retirement System: Contributions to the police pension plan from the City were $1,349,366. The State of Oklahoma also made on-behalf contributions to OPPRS in the amount of $1,231,834 that is reported as both a revenue and an expenditure in the General Fund Statement of Revenues, Expenditures, and Changes in Fund Balance. In the government-wide Statement of Activities, revenue is recognized for the state’s on-behalf contributions on an accrual basis of $1,222,949. These on-behalf payments did not meet the criteria of a special funding situation. Oklahoma Firefighters Pension and Retirement System: Contributions to the fire pension plan from the City were $1,501,841. The State of Oklahoma also made on-behalf contributions to OPPRS in the amount of $3,700,999 that is reported as both a revenue and an expenditure in the General Fund Statement of Revenues, Expenditures, and Changes in Fund Balance. In the government-wide Statement of Activities, revenue is recognized for the state’s on-behalf contributions on an accrual basis of $3,475,375. These on-behalf payments did not meet the criteria of a special funding situation. Net Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions Oklahoma Police Pension and Retirement System: At June 30, 2017, the City reported a liability of $5,214,739 for its proportionate share of the Police net pension liability. The net pension liability was measured as of June 30, 2016, and the total pension liability used to calculate the net pension liability was based on the City’s contributions received by the pension plan relative to the total contributions received by the pension plan for all participating employers as of June 30, 2016. Based upon this information, the City’s proportion was 3.405 percent. For the year ended June 30, 2017, the City recognized pension expense of $1,903,700. At June 30, 2017, the City reported deferred outflows of resources and deferred inflows of resources related to pension from the following sources:

Deferred Outflows Deferred Inflows

of Resources of Resources

Difference between expected and actual

experience 16,729$ 585,772$

Net difference between projected and actual

earnings on pension plan investments 5,010,476 -

Changes in proportion 169,507 -

City contributions during measurement date - 15,825

City contributions subsequent to the

measure date 1,349,366 -

Total 6,546,078$ 601,597$

The $1,349,366 reported as deferred outflows of resources related to pensions resulting from City contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2018. Any other amounts reported as deferred outflow of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows:

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June 30, 2017

Year ended June 30:

2018 762,204$

2019 762,204

2020 1,787,742

2021 1,267,628

2022 15,337

4,595,115$

Oklahoma Firefighters Pension and Retirement System: At June 30, 2017, the City reported a net pension liability of $45,986,170 for its proportionate share of the total net pension liability. The net pension liability was measured as of June 30, 2016, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of July 1, 2016. The City’s proportion of the net pension liability was based on the City’s contributions received by the pension plan relative to the total contributions received by pension plan for all participating employers as of June 30, 2016. Based upon this information, the City’s proportion was 3.7641 percent. For the year ended June 30, 2017, the City recognized pension expense of $5,106,834. At June 30, 2017, the City reported deferred outflows of resources and deferred inflows of resources related to pension from the following sources:

Deferred Outflows Deferred Inflows

of Resources of Resources

Changes of assumptions 1,232,763$ -$


earnings on pension plan investments 2,813,647 -

Changes in proportion 1,895,265 -

City contributions during measurement date - 15,617


measure date 1,501,841 -

Total 7,443,516$ 15,617$

The $1,501,841 reported as deferred outflows of resources related to pensions resulting from City contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2018. Any other amounts reported as deferred outflow of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows:

Year ended June 30:

2018 715,042$

2019 715,042

2020 2,179,864

2021 1,717,585

2022 475,762

thereafter 122,763

5,926,058$

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June 30, 2017

Actuarial Assumptions Oklahoma Police Pension and Retirement System: The total pension liability was determined by an actuarial valuation as of July 1, 2016, using the following actuarial assumptions, applied to all prior periods included in the measurement: Inflation: 3%

Salary increases: 4.5% to 17% average, including inflation

Investment rate of return: 7.5% net of pension plan investment expense

Cost-of-living adjustments: Police officers eligible to receive increased benefits according to

repealed Section 50-120 of Title 11 of the Oklahoma Statutes pursuant

to a court order receive an adjustment of 1/3 to 1/2 of the increase or

decrease of anyadjustment to the to the base salary of a regular police officer,

based on an increase in base salary.

Mortality rates: Active employees (pre-retirement) RP-2000 Blue Collar

Healthy Combined table with age set back 4 years with fully generational

improvement using Scale AA.

Active employees (post-retirement) and nondisabled pensioners:

RP-2000 Blue Collar Healthy Combined table with fully generational


Disabled pensioners: RP-2000 Blue Collar Healthy Combined

table with age set forward 4 years with fully generational


The actuarial assumptions used in the July 1, 2016, valuation were based on the results of an actuarial experience study for the period July 1, 2007, to June 30, 2012. The long-term expected rate of return on pension plan investments were determined using a building block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense, and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. Best estimates of arithmetic real rates of return for each major asset class included in the pension plan’s target asset allocation as of June 30, 2016, are summarized in the following table:

Long-Term Expected

Asset Class Real Rate of Return

Fixed income 3.27%

Domestic equity 5.16%

International equity 8.61%

Real estate 4.97%

Private equity 8.32%

Commodities 2.42%

The current allocation policy is that approximately 60% of assets in equity instruments, including public equity, long-short hedge, venture capital, and private equity strategies; approximately 25% of assets in fixed income to include investment grade bonds, high yield and non-dollar denominated bonds, convertible bonds, and low volatility hedge fund strategies; and 15% of assets in real assets to include real estate, commodities, and other strategies.

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June 30, 2017

Oklahoma Firefighters Pension and Retirement System: The total pension liability was determined by an actuarial valuation as of July 1, 2016, using the following actuarial assumptions, applied to all prior periods included in the measurement:

Inflation: 3%

Salary increases: 3.5% to 9.0% average, including inflation

Investment rate of return: 7.5% net of pension plan investment expense

Mortality rates were based on the RP2000 combined healthy with blue collar adjustment as appropriate, with adjustments for generational mortality improvement using scale AA for healthy lives and no mortality improvement for disabled lives. The actual assumptions used in the July 1, 2016 valuation were based on the results of an actuarial experience study for the period July 1, 2007, to June 30, 2012. The long-term expected rate of return on pension plan investments were determined using a building block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense, and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. Best estimates of arithmetic real rates of return for each major asset class included in the pension plan’s target asset allocation as of June 30, 2016, are summarized in the following table:

Target Long-Term Expected

Asset Class Allocation Real Rate of Return

Fixed income 20% 5.18%

Domestic equity 47% 8.70%

International equity 15% 10.87%

Real estate 10% 7.23%

Other assets 8% 6.24%

Discount Rate Police and Fire Pensions discount rate used to measure the total pension liability was 7.5%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current contribution rate and that contributions from employers will be made at contractually required rates, determined by State statues. Projected cash flows also assume the State of Oklahoma will continue contributing 14% for Police and 36% for Fire of the insurance premium, as established by statute. Based on these assumptions, the pension plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. Sensitivity of the Net Pension Liability to Changes in the Discount Rate The following presents the net pension liability of the employers calculated using the discount rate of 7.5%, as well as what the Plan’s net pension liability would be if it were calculated using a discount rate with is 1-percentage point lower (6.5%) or 1-percentage point higher (8.5%) than the current rate:

1% Decrease Current Discount 1% Increase

(6.5%) Rate (7.5%) (8.5%)

Police Pension net pension liability (asset) 13,681,777$ 5,214,739$ (1,934,381)$

Fire Pension net pension liability 58,214,683$ 45,986,170$ 35,733,637$

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June 30, 2017

Pension plan fiduciary net position Detailed information about the pension plan’s fiduciary net position is available in the separately issued financial report of the OPPRS; which can be located at www.ok.gov/OPPRS and the FPRS; which can be located at www.ok.gov/FPRS. Edmond Employees Retirement System - Single-Employer, Defined Benefit Pension Plan Plan Description, Contribution Information, and Funding Policies The City contributes to the City of Edmond Employees' Retirement System (the "System"), which is a single employer defined benefit pension plan administered by the City of Edmond Administrative Committee. All non-union full-time City employees are eligible to participate in the System. The City’s retirement ordinance requires that actuarial valuations be performed in each even-numbered year to determine if the City’s fixed contribution rate is adequate to fund the actuarially determined contribution requirement. The System does not issue separate annual financial statements. The System and the City have a June 30th year-end. The City has elected to use the preceding year-end of the System as its measurement date; therefore, net pension liability and related deferred inflows are reported as of June 30, 2016. The System’s pension liability was based on an actuarial valuation as of June 30, 2016. Pension payments made by the City from the measurement date to June 30, 2017 are reported as deferred outflows. Summary of Significant Accounting Policies For purposes of measuring the net pension liability, deferred outflows or resources and deferred inflows of resources related to pensions, and pension expense, amounts and disclosures have been prepared using the accrual basis of accounting. Employee and employer contributions are recognized as System revenues in the period in which they are due to the plan. Benefits and refunds are recognized when due and payable pursuant to plan provisions. Investments are reported at fair value. Method Used to Value Investments - Values of System assets are reported at fair value market. As of June 30, 2017, the System held no related party investments or individual investments (other than U.S. government and U.S. government guaranteed securities) whose market value exceeds five percent or more of the net position available for benefits. Eligibility Factors and Benefit Provisions

Year established and governing authority

1966; City Council Ordinance

Determination of Contribution requirements

City Ordinance; actuarially determined

Employer 8.99% - The city used the prior year actuarial determined employer contributions rate of 8.61% in fiscal year 2017

Plan members 5.25%

Funding of administrative costs

Investment earnings

Period required to vest

7 years

Eligibility for distribution

Age 65, or age 55 with seven years credited service

Provisions for: Disability benefits YesDeath benefits Yes

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June 30, 2017

Benefits paid: Calculated on the average gross salary of a participant’s

earnings during the highest 30 consecutive months of the last five years of credited service. Gross salary does not include payment of accumulated sick or annual leave upon termination of employment.

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

Non-vested active members 192 Fully vested active members 281

Total Active members 473 Non-active retired, beneficiaries, disabled and deferred vested participants 186 Total Plan Participants 659

Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions At June 30, 2017, the City reported a liability of $19,725,405 and the EEDA component unit $193,963 for their proportionate share of the net pension liability. The net pension liability was measured as of June 30, 2016, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of July 1, 2016. There were no changes in assumptions or changes in benefit terms that affected measurement of the total pension liability. There were also no changes between the measurement date of July 1, 2016 and the City’s report ending date of June 30, 2017, that would have had a significant impact on the net pension liability. The following table reports the components of changes in net pension liability:

Total Pension Plan Net Net Pension

Liability Position Liability

Balances at beginning of year, 7/1/2015 77,150,952$ 63,743,608$ 13,407,344$

Changes for the year:

Service cost 2,822,532 - 2,822,532

Interest expense 5,565,362 - 5,565,362

Contributions – employer - 2,292,339 (2,292,339)

Contributions – employee - 1,400,380 (1,400,380)

Net investment income - (1,060,450) 1,060,450

Benefits paid (3,610,999) (3,610,999) -

Difference between actual and expected experience 729,188 - 729,188

Plan administrative expenses - (27,211) 27,211

Net changes 5,506,083 (1,005,941) 6,512,024

Balances at end of year, 7/1/2016 82,657,035$ 62,737,667$ 19,919,368$

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June 30, 2017

For the year ended June 30, 2017, the City recognized pension expense of $4,426,424 and EEDA recognized pension expense of $43,525. At June 30, 2017, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Deferred Outflows Deferred Inflows Deferred Outflows Deferred Inflows

of Resources of Resources of Resources of Resources

Difference between expected and actual

experience 1,424,112$ -$ 14,005$ -$


earnings on pension plan investments 7,262,939 - 71,417

Change in proportion 158,192 146,104 3,811 15,901


measure date 2,441,166$ -$ 24,004$ -$

Total 11,286,409$ 146,104$ 113,237$ 15,901$

City Component Unit

The City’s $2,441,166 and EEDA’s $24,004 reported as deferred outflows of resources related to pensions resulting from contributions subsequent to the measurement date will be recognized as a decrease of the net pension liability in the year ended June 30, 2018. Other amounts will be reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows:

Year ended June 30: City Component Unit

2018 2,061,420$ 18,121$

2019 2,061,420 18,121

2020 2,888,896 26,258

2021 1,417,443 11,789

2022 186,342 (280)

thereafter 83,618 (677)

8,699,139$ 73,332$

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

Discount Rate 7.25%

Long-term expected rate of return 7.25%

Measurement date 7/1/2015

Inflation 2.50%

Projected salary increase* Age-related

Mortality RP 2000 projected

with cohort projection

Retirement rates* Experience

Turnover* Experience

Actuarial cost method Entry Age Normal

* In 2011 a detailed study was completed of the Retirement System’s demographic experience over the proceeding seven years. As a result, the Actuary recommended and the System’s Administrative Committee approved new assumptions based on actuarial experience. The assumption changes included a revised schedule of age-related retirement rates, age-related assumed pay increases replaced the 5% pay increase assumption and a new turnover assumption based on both age and employee years of service was implemented. These updates represent an ongoing and continuing process of refining prior assumptions.

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June 30, 2017

No changes in assumptions were made during fiscal year 2017.

The City has adopted a funding method that is designed to fund all benefits payable to participants over the course of their working careers. Any differences between actual and expected experience are funded over a fixed period to ensure all funds necessary to pay benefits have been contributed to the trust before those benefits are payable. Therefore, the sufficiency of pension plan assets was made without a separate projection of cash flows. The long-term expected rate of return on pension plan investments was determined using a building block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense, and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation (2.5%) and deducting expenses. Best estimates of arithmetic real rates of return for each major asset class included in the pension plan's target asset allocation as of June 30, 2016, are summarized in the following table:

Target Long-Term Expected

Asset Class Allocation Real Rate of Return

Domestic equity 20% 6.0%

International equity 23% 6.2%

Fixed income 29% 2.5%

Real estate,

commodities and

partnerships 28% 6.3%

Discount Rate The discount rate used to measure the total pension liability was 7.25%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the actuarially determined contribution amounts. Based on the assumption, the pension plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return was adjusted to all periods of projected benefit payments to determine the total pension liability. Sensitivity of the Net Pension Liability to Changes in the Discount Rate The following presents the net pension liability of the employers calculated using the discount rate of 7.25%, as well as what the Plan's net pension liability would be if it were calculated using a discount rate that is 1-percentage point lower (6.25%) or 1-percentage-point higher (8.25%) than the current rate:

1% Current 1%

Decrease Discount Increase

(6.25%) Rate (7.25%) (8.25%)

Employer's Total Pension Liability

Employer's Net Pension Liability - 2016 31,333,073$ 19,919,368$ 10,438,994$

Employer's Net Pension Liability - 2017 30,108,437$ 18,051,069$ 8,028,082$

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June 30, 2017

The components of the net pension liability of the City June 30, 2016 and 2017, were as follows:

2016 2017

Total Net Pension Liability 82,657,036$ 88,472,906$

Plan fiduciary Net Position 62,737,666 70,421,837

Net Pension Liability 19,919,370$ 18,051,069$

Plan Fiduciary Net Position as a percentage of 75.90% 79.60%

the total pension liability

Other Post-Employment Benefits Plan Description: City provides post-retirement benefit options for health care, prescription drug, dental and vision benefits for retired employees and their dependents that elect to make required contributions. The benefits are provided in accordance with State law, police and firefighter's union contracts and the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA). The relationship for these benefits is not formalized in a contract or plan document, only a few sentences in the administrative policy. These benefits are considered for accounting purposes to be provided in accordance with a single employer substantive plan. A substantive plan is one in which the plan terms are understood by the city and plan members. This understanding is based on communications between the employers and plan member and the historical pattern of practice with regard to the sharing of benefit costs. Substantially all of the government's employees may become eligible for those post-retirement benefits if they reach normal retirement age while working for the City. As of June 30, 2017, approximately 34 retired employees and 20 survivors are receiving benefits under this plan. Funding Policy. The contribution requirement of the City is an implicit subsidy. The implicit subsidy is not a direct payment from the employer on behalf of the member but rather stems from retiree contribution levels that are less than the claims cost at retiree ages. Since claims experience for employees and non-Medicare eligible retirees are pooled when determining premiums, these retired members pay a premium based on a pool of members that, on average, are younger and healthier. There is an implicit subsidy from the employee group since the premiums paid by the retirees are lower than they would have been if the retirees were insured separately. The subsidies are valued using the difference between the age-based claims costs and the premium paid by the retiree. The amount required to fund the implicit rate is based on projected pay-as-you-go financing requirements. For fiscal year 2017, the City contributed $162,326 to the plan. Plan members receiving benefits contributed $408,957, or approximately 69% percent of the value of coverage, through their required contribution of $450.84 per month for retiree-only Standard option coverage and $901.86 for retiree and family medical Standard option coverage. Retirees have the option to upgrade to the Enhanced option. Retirees who elected Standard option dental coverage contributed $38.71 for retiree only and $83.54 for retiree and family coverage per month. Retirees have the option to Buy Up on their dental plan for an additional $12.00 per month for retiree-only coverage or $46.00 for retiree and family coverage per month. Retirees who elected vision coverage contributed $6.84 for retiree only coverage and $13.74 for retiree and family coverage per month. Annual OPEB Cost and Net OPEB Obligation. The City's annual other postemployment benefit (OPEB) cost (expense) is calculated based on the annual required contribution of the employer (ARC), an amount actuarially determined in accordance with the parameters of GASB Statement 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed thirty years. The following table shows the components of the City's annual OPEB cost, the amount actually contributed to the plan, and changes in the City’s net OPEB obligation for the year ended June 30, 2017:

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June 30, 2017

Annual required contribution 772,339$

Interest on net OPEB obligation 101,480

Adjustment to annual required contribution (233,843)

Annual OPEB cost (expense) 639,976

Contributions made (162,326)

Increase in net OPEB obligation 477,650

Net OPEB obligation-beginning of year 3,148,179

Net OPEB obligation-end of year 3,625,829$

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

Fiscal YearAnnual OPEB

CostNet Employer Contribution

Percentage of Annual OPEB

Cost Contributed

Net OPEB Obligation

6/30/2009 445,942$ 137,552$ 31% 308,390$

6/30/2010 461,362$ 142,366$ 31% 627,386$

6/30/2011 443,179$ 144,403$ 33% 926,162$

6/30/2012 520,882$ 144,402$ 28% 1,302,641$

6/30/2013 597,062$ 188,856$ 32% 1,710,847$

6/30/2014 600,226$ 188,858$ 31% 2,122,215$

6/30/2015 740,937$ 105,686$ 14% 2,757,465$

6/30/2016 553,041$ 162,326$ 29% 3,148,180$

6/30/2017 639,976$ 162,326$ 25% 3,625,829$

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

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June 30, 2017

Actuarial Methods and Assumptions. Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and the plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculations.

Actuarial cost method Entry Age Normal Amortization method level payments, open Remaining amortization period 22 years Inflation rate 2.5% Asset valuation method 3.58% (discount rate) Investments return N/A (unfunded) Projected salary increases N/A Cost of living adjustments N/A Healthcare cost trend rate 6.09% in 2017 graded to 4.87% in 2060

4.B. RISK MANAGEMENT The City is exposed to various risks of loss related to torts, theft of, damage to, or destruction of assets; errors and omissions; injuries to employees; employee’s health and life; and natural disasters. The City manages these various risks of loss as follows: Type of Loss Method Managed Risk of Loss Retained

a. General Liability:

- Torts - Errors and omissions - Police liability - Vehicle

City has insurance coverage for GeneralLiability coverage. All claims aresubmitted to a third party administrator for determination of liability. Claimsbelow the self insured retention (SIR) are accounted for within the Liability Tort Claim Fund.

City retains risk of losses up to $100,000 SIR per occurrence with excess coverage up to $5,000,000

b. Physical Property:

- Theft - Damage to assets

- Natural disasters

City has insurance coverage for Property& Contents and Boiler & Machinery. Claims for losses are submitted toinsurance provider for reimbursement oflosses.

City retains risk of loss up to the deductible amount of $10,000 for property and $10,000 for B & M. Coverage amounts vary by type of loss.

c. Workers Compensation:

- Employee injuries Self-insured with third-party

administration of the claims process.Liability Tort Claim Fund used to account for activities with participating funds charged through an estimatedannual claim cost for each fund. Administered by Cannon Cochran Management Services, Inc.

City retains risk of loss for first $450,000 or $750,000 of damage per occurrencedepending on job classification. Stop loss insurance carried for damages above the City deductible up to a maximum aggregate of $2,000,000 per occurrence.

d. Health and Life:

- Medical - Dental - Vision

- Life and ADD - LTD

Self-insured with City paying a portion of health care premiums, and all of life, ADD and LTD premiums. Administered by Aetna and Unum.

Claims up to $130,000 per individual self-funded with stop-loss insurance up to $1,000,000 per person.

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June 30, 2017

The City maintains a stop-loss policy for plans to limit risk associated with the plans. For insured programs, there have been no significant reductions in insurance coverage. Settlement amounts have not exceeded insurance coverage for the current year or the four prior years. Claims Liability Analysis The claims liabilities related to the above noted risks of loss that are retained are determined in accordance with the requirements of Statement of Financial Accounting Standards No. 5., which requires that a liability for claims be reported if information prior to the issuance of the financial statements indicates that it is probable that a liability has been incurred at the date of the financial statements and the amount of the loss can be reasonably estimated. The City has elected to report its estimated claim liability at the discounted net present value of future payments. For the internal service self-insurance funds, changes in the claims liability for the City from July 1, 2015 to June 30, 2017, are as follows:

Workers' Compensation Health Care Tort Total

Claim liability, June 30, 2015 1,656,000$ 366,531$ 1,081,000$ 3,103,531$

Claims and changes in estimates 138,216 7,275,963 462,328 7,876,507

Claims payments (259,216) (7,334,309) (463,328) (8,056,853)

Claim liability, June 30, 2016 1,535,000$ 308,185$ 1,080,000$ 2,923,185$

Claims and changes in estimates 835,272 10,106,234 122,118 11,063,624

Claims payments (617,272) (9,314,218) (138,118) (10,069,608) Claim liability, June 30, 2017 1,753,000$ 1,100,201$ 1,064,000$ 3,917,201$

Reconciliation to Statement of Net Position:

Current port ion 1,797,151$

Noncurrent portion 2,120,050

Total 3,917,201$

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

Grant Program Involvement

In the normal course of operations, the City participates in various federal or state grant/loan programs from year to year. The grant/loan programs are often subject to additional audits by agents of the granting or loaning agency to ensure compliance with specific provisions of the grant or loan. Any liability or reimbursement which may arise as a result of these audits cannot be reasonably determined at this time, although it is believed the amount, if any, would not be material.

Litigation The City is a party to various legal proceedings which normally occur in the course of governmental operations. The financial statements do not include accrual or provisions for loss contingencies that may result from these proceedings. State statutes provide for the levy of an ad valorem tax over a three-year period by a City Sinking Fund for the payment of any court assessed judgment rendered against the City. This statutory taxing ability is not available to the City’s public trusts (Authorities). While the outcome of the above noted proceedings cannot be predicted, due to the insurance coverage maintained by the City and the State statute relating to judgments, the City feels that any settlement or judgment not covered by insurance would not have a material adverse effect on the financial condition of the City.

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June 30, 2017

Debt issue During FY 2017 the EPWA entered into the Series 2016 Drinking Water SRF Promissory Note with the Oklahoma Water Resources Board for a $2,500,000 loan for water improvements. The loan bears interest at a rate of 2.36% plus and administrative fee of 0.5% annually. The loan is eligible for principal forgiveness under the program. There were no draws made on the note at June 30, 2017. 4.D. NEW ACCOUNTING PRONOUNCEMENTS The GASB has issued several new accounting pronouncements, which will be effective in subsequent years. A description of the new accounting pronouncements, the fiscal year in which they are effective, and the City’s consideration of the impact of these pronouncements are described below: Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions. This Statement replaces the requirements of Statements No. 45, Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pensions, as amended, and No. 57, OPEB Measurements by Agent Employers and Agent Multiple-Employer Plans, for OPEB. Statement No. 74, Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans, establishes new accounting and financial reporting requirements for OPEB plans. This Statement is effective for fiscal years beginning after June 15, 2017. The City has not yet determined the impact that implementation of GASB 75 will have on its net position. GASB Statement No. 81, Irrevocable Split-Interest Agreements - GASB 81 was issued in March 2016, to improve accounting and financial reporting for irrevocable split-interest agreements by providing recognition and measurement guidance for situations in which a government is a beneficiary of the agreement. The City does not believe that GASB No. 81 will have significant impact on its financial statements. GASB Statement No. 83, Certain Asset Retirement Obligations, issued December 2016, will be effective for the City beginning with its fiscal year ending June 30, 2019. Under Statement No. 83, a government that has legal obligations to perform future asset retirement activities related to its tangible capital assets is required to recognize a liability and a corresponding deferred outflow of resources. The Statement identifies the circumstances that trigger the recognition of these transactions. The Statement also requires the measurement of an asset retirement obligation to be based on the best estimate of the current value of outlays expected to be incurred while the deferred outflow of resources associated with the asset retirement obligation will be measured at the amount of the corresponding liability upon initial measurement and generally recognized as an expense during the reporting periods that the asset provides service. The Statement requires disclosures including a general description of the asset retirement obligation and associated tangible capital assets; the source of the obligation to retire the assets; the methods and assumptions used to measure the liability; and other relevant information. The City has not yet determined the impact that implementation of GASB 84 will have on its net position. GASB Statement 84, Fiduciary Activities, issued January 2017, will be effective for the City for the City beginning with its fiscal year ending June 30, 2019. This Statement establishes criteria for identifying fiduciary activities of all state and local governments. The focus of the criteria generally is on (1) whether a government is controlling the assets of the fiduciary activity and (2) the beneficiaries with whom a fiduciary relationship exists. Separate criteria are included to identify fiduciary component units and postemployment benefit arrangements that are fiduciary activities. The City has not yet determined the impact that implementation of GASB 84 will have on its net position. GASB Statement 85, Omnibus 2017, issued March 2017, will be effective for the City beginning with its fiscal year ending December 31, 2018. This Statement address a variety of topics including issues related to blending component units, goodwill, fair value measurement and application, and postemployment benefits. The City has not yet determined the impact that implementation of GASB 85 will have on its net position. GASB Statement 86, Certain Debt Extinguishment Issues, issued May 2017, will be effective for the City beginning with its fiscal year ending December 31, 2018. The primary objective of this Statement is to improve the consistency in accounting and financial reporting for in-substance defeasance of debt by providing guidance for transactions in

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June 30, 2017

which cash and other monetary assets acquired with only existing resources – resources other than the proceeds of refunding debt – are placed in an irrevocable trust for the sole purpose of extinguishing debt. This Statement also improves accounting and financial reporting for prepaid insurance on debt that is extinguished and notes to financial statements for debt that is defeased in substance. The City has not yet determined the impact that implementation of GASB 86 will have on its net position. GASB Statement 87, Leases, issued June 2017, will be effective for the City beginning with its fiscal year ending December 31, 2020. The primary objective of this Statement is to increases the usefulness of governments’ financial statements by requiring recognition of certain lease assets and liabilities for leases that previously were classified as operating leases and recognized as inflows of resources or outflows of resources based on the payment provisions of the contract. It establishes a single model for lease accounting based on the foundational principle that leases are financings the right to use an underlying asset. Under this Statement, a lessee is required to recognize a lease liability and an intangible right-to-use lease asset, and a lessor is required to recognize a lease receivable and a deferred inflow of resources, thereby enhancing the relevance and consistency of information about governments’ leasing activities. The City has not yet determined the impact that implementation of GASB 87 will have on its net position. 4.E. ECONOMIC DEVELOPMENT The City is party to multiple agreements for the purpose of developing the Interstate 35 corridor within its city limits. In fiscal 2012, the City purchased land along the corridor for $2.2 million for the development of a hotel and conference center. Subsequently, the City entered into a development agreement and committed to lend $4.8 million towards the cost of constructing the conference center. The developer is responsible for financing the cost of the related hotel and expenditures for the Conference Center that exceed $4.8 million. Rental payments to the City for the use of the underlying land are one dollar a year. The hotel will be privately owned and managed. Based on terms of the contract, the developer may purchase the land and conference center from the City for $7 million at any time. If the developer elects to not purchase the land and conference center, the City will lease the land to the developer at a market based rate, including escalators. Alternatively, the City has a contractual commitment from the developer to begin paying back the loan starting in the 10th year from commencing operations of the facility over a term of 25 years. Management of the conference center has been contracted to a third party. In return, the City will pay the manager a monthly management fee as defined in the agreement. The initial infrastructure improvements were funded by the City up to $2 million with the developer paying the cost which exceeded the $2 million limit. An additional agreement was established which constructed a storm sewer through the property. Pursuant to the agreement the City would pay the expense of the storm sewer not to exceed $1 million. In addition, the City has agreed to rebate any Hotel Tax collected from the Hotel for a period of fifteen years from the anniversary date of the Certificate of Occupancy. No taxes were abated in fiscal year 2017. Additionally, the City previously purchased additional land along the corridor in a separate transaction for $2 million for the purpose of developing a sports complex. A ground lease agreement was entered into with a tenant, who will construct the facilities. The tenant agrees to pay the City monthly rentals of $5,000 for the land for thirty years. The tenant has the right to purchase the land for $2 million at any time. Alternatively, the City has the right to require the tenant to purchase the land for $2 million on the fifteenth anniversary date of its opening. Both projects have established timelines and benchmarks for completion that must be met by the various parties, subject to extension by the City and the various parties. These terms are not within the normal and customary practices of the City, and therefore other than normal credit risks are involved, the City will classify these agreements as operating leases and no additional provisions have been recorded in the accompanying financial statements because of these agreements. 4.F. SUBSEQUENT EVENTS In October 2017, the EPWA issued $167,025,000 of Sales Tax and Utility System Revenue Bonds. The bonds mature in principal amounts of $2,135,000 to $6,255,000 on July 1 of each year through 2037, in addition, there are term bonds due in amounts from $10,000,000 to $25,475,000 from 2042 to 2047. The bonds have an interest rate of 3.00% to 5.00%. Proceeds of the bonds will be used for wastewater improvements.

92

REQUIRED SUPPLEMENTARY INFORMATION

CITY OF EDMOND, OKLAHOMA REQUIRED SUPPLEMENTARY INFORMATION

June 30, 2017

ORIGINAL BUDGET FINAL BUDGET ACTUAL

VARIANCE WITH FINAL

BUDGET POSITIVE

(NEGATIVE)

REVENUES

TAXES:

Sales tax 34,072,793$ 34,072,793$ 33,565,653$ (507,140)$

Use tax 4,222,791 4,222,791 4,815,239 592,448

Franchise 2,516,214 2,516,214 2,086,557 (429,657)

Liquor tax 43,644 43,644 56,000 12,356

Total Taxes 40,855,442 40,855,442 40,523,449 (331,993)

INTERGOVERNMENTAL:

Grant revenues - - 290,577 290,577

Alcoholic beverage 135,146 135,146 136,515 1,369

Cigarette tax 796,259 796,259 755,435 (40,824)

Vehicle tax 634,558 634,558 616,325 (18,233)

Gasoline tax 157,198 157,198 178,977 21,779

Total Intergovernmental 1,723,161 1,723,161 1,977,829 254,668

CHARGES FOR SERVICES:

Swimming pool fees - - 1,583 1,583

Recreational program fees 64,702 64,702 44,118 (20,584)

Right-of-Way fees 4,920,265 4,920,265 6,370,477 1,450,212

Cemetery fees 161,946 161,946 182,063 20,117

Curb cut fees 9,953 9,953 13,140 3,187

Animal welfare fees 52,571 52,571 51,757 (814)

Filing fees 69,194 69,194 70,290 1,096

911 fees 36,829 36,829 24,718 (12,111)

Miscellaneous charges 4,761 4,761 8,124 3,363

Total Charges for Services 5,320,221 5,320,221 6,766,270 1,446,049

FINES AND FORFEITURES 1,895,219 1,895,219 2,268,682 373,463

LICENSES AND PERMITS 1,458,775 1,458,775 1,452,922 (5,853)

INVESTMENT INCOME 60,000 60,000 51,871 (8,129)

MISCELLANEOUS 224,850 224,850 450,472 225,622

TOTAL REVENUES 51,537,668 51,537,668 53,491,495 1,953,827

OTHER FINANCING SOURCES:

Transfers from other funds 4,488,089 16,124,338 17,383,519 1,259,181

Total Other Financing Sources 4,488,089 16,124,338 17,383,519 1,259,181

TOTAL REVENUES AND OTHER FINANCING SOURCES 56,025,757$ 67,662,006$ 70,875,014$ 3,213,008$

(Continued)


BUDGETARY COMPARISON SCHEDULE

GENERAL FUND

For the fiscal year ended June 30, 2017

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June 30, 2017


VARIANCE WITH FINAL

BUDGET POSITIVE

EXPENDITURES

General Government:

General:

Other services and charges 104,352$ 158,002$ 99,542$ 58,460$

Total General 104,352 158,002 99,542 58,460

City Council:

Personal services 24,545 24,640 24,639 1

Materials and supplies 7,050 7,050 2,250 4,800

Other services and charges 174,750 174,655 93,185 81,470

Total City Council 206,345 206,345 120,074 86,271

Municipal Court:

Personal services 698,516 698,516 651,054 47,462



Total Judicial 868,278 868,288 771,915 96,373

Edmond-Guthrie Regional Airport


Cemetery:


Materials and supplies 12,968 12,968 12,255 713


Total Cemetery 199,995 199,995 187,938 12,057

Planning and Zoning:

Personal services 599,227 615,947 615,946 1



Total Planning and Zoning 638,727 645,032 642,220 2,812

Dow ntow n Community Center:




Dow ntow n Community Center 133,704 133,704 105,400 28,304

TOTAL GENERAL GOVERNMENT 2,317,418 2,444,193 2,026,954 417,239

ECONOMIC DEVELOPMENT:

Community Image:




Capital outlay 50,000 50,000 19,146 30,854

Total Community Image 1,275,439 1,280,892 1,106,245 174,647

TOTAL ECONOMIC DEVELOPMENT 1,275,439 1,280,892 1,106,245 174,647

(Continued)



GENERAL FUND


94


June 30, 2017


VARIANCE WITH FINAL

BUDGET POSITIVE

(NEGATIVE)

PUBLIC SAFETY:

Emergency Management:




Capital outlay 50,000 50,000 49,980 20

Total Emergency Management 335,530 335,530 261,938 73,592

Building Department:

Personal services 1,210,268 1,210,268 1,207,554 2,714



Total Building Department 1,348,065 1,348,065 1,285,532 62,533

TOTAL PUBLIC SAFETY 1,683,595 1,683,595 1,547,470 136,125

STREETS AND HIGHWAYS:

Capital outlay 850,000 1,490,235 1,003,430 486,805

TOTAL STREETS AND HIGHWAYS 850,000 1,490,235 1,003,430 486,805

OUTSIDE AGENCIES:

Other services and charges 649,745 649,745 648,896 849

TOTAL OUTSIDE AGENCIES 649,745 649,745 648,896 849

PARKS AND RECREATION:

Parks and Recreation:

Personal services 1,091,323 1,091,323 998,102 93,221

Material and supplies 173,093 192,093 150,718 41,375


Total Parks and Recreation 2,096,816 2,215,059 1,896,075 318,984

Senior Center:




Total Senior Citizens 415,097 415,097 386,669 28,428

Festival Marketplace:




Total Festival Marketplace 38,084 38,084 28,021 10,063

Historical Society:

Materials and supplies 250 250 - 250


Total Historical Society 263,100 263,100 259,256 3,844

TOTAL PARKS AND RECREATION 2,813,097 2,931,340 2,570,021 361,319

TOTAL EXPENDITURES 9,589,294 10,480,000 8,903,016 1,576,984

OTHER FINANCING SOURCES (USES)

Transfers to other funds (46,350,043) (59,476,390) (59,476,390) -

Total Other Financing Uses (46,350,043) (59,476,390) (59,476,390) -

TOTAL EXPENDITURES AND OTHER FINANCING USES 55,939,337 69,956,390 68,379,406 1,576,984

REVENUES AND OTHER SOURCES OVER (UNDER) EXPENDITURES AND OTHER USES 86,420$ (2,294,384)$ 2,495,608$ 4,789,992$



GENERAL FUND


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June 30, 2017

Original Budget Final Budget Actual

Variance with Final Budget -

Positive (Negative)

REVENUESTaxes 4,258,527$ 4,258,524$ 4,214,931$ (43,593)$ Intergovernmental - - 297,066 297,066 Charges for services 6,000 6,000 10 (5,990) Investment income 80,000 80,000 73,363 (6,637) Miscellaneous 39,531 39,531 58,947 19,416

Total revenues 4,384,058 4,384,055 4,644,317 260,262


Public SafetyPersonal services 15,764,286 15,764,286 14,926,622 837,664 Materials and supplies 1,006,250 1,024,127 401,698 622,429 Other services and charges 4,031,680 4,106,229 3,633,432 472,797 Capital outlay 50,000 912,251 561,289 350,962

Total Expenditures 20,852,216 21,806,893 19,523,041 2,283,852 Excess (deficiency) of revenues over expenditures (16,468,158) (17,422,838) (14,878,724) 2,544,114

OTHER FINANCING SOURCES (USES)Transfers in 15,609,724 15,609,724 15,885,554 275,830

Total other financing sources and uses 15,609,724 15,609,724 15,885,554 275,830

Net change in fund balance (858,434)$ (1,813,114)$ 1,006,830$ 2,819,944$

City of Edmond, OklahomaBudgetary Comparison Schedule

Major Special Revenue Fund - Fire Public Safety Limited Tax FundFor the year ended June 30, 2017

Fire Public Safety Limited Tax Fund

96


June 30, 2017

Original Budget Final Budget Actual

Variance with Final Budget -

Positive (Negative)

REVENUESTaxes 2,132,392$ 2,132,392$ 2,107,465$ (24,927)$ Intergovernmental - 51,000 154,755 103,755 Charges for services 1,500 1,500 - (1,500) Investment income 50,000 50,000 56,040 6,040 Miscellaneous 27,930 27,930 152,665 124,735

Total revenues 2,211,822 2,262,822 2,470,925 208,103


Public SafetyPersonal services 17,569,458 17,604,389 17,044,759 559,630 Materials and supplies 1,096,724 1,104,884 797,419 307,465 Other services and charges 4,822,216 4,835,724 4,599,142 236,582 Capital outlay 70,000 155,639 85,639 70,000

Total Expenditures 23,558,398 23,700,636 22,526,959 1,173,677 Excess (deficiency) of revenues over expenditures (21,346,576) (21,437,814) (20,056,034) 1,381,780

OTHER FINANCING SOURCES (USES)Transfers in 19,147,929 19,147,929 19,486,282 338,353

Total other financing sources and uses 19,147,929 19,147,929 19,486,282 338,353

Net change in fund balances (2,198,647)$ (2,289,885)$ (569,752)$ 1,720,133$

City of Edmond, OklahomaBudgetary Comparison Schedule

Major Special Revenue Fund -Police Public Safety Limited Tax FundFor the year ended June 30, 2017

Police Public Safety Limited Tax Fund

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June 30, 2017

NOTES TO BUDGETARY COMPARISON SCHEDULES BUDGETARY ACCOUNTING AND CONTROL Budget Law

The City prepares its annual operating budget under the provisions of the Oklahoma Municipal Budget Act of 1979 (the "Budget Act"). In accordance with those provisions, the following process is used to adopt the annual budget:

a. Prior to June 1, the City Manager submits to the City Council a proposed operating

budget for the fiscal year commencing the following July 1. The operating budget includes proposed expenditures and the means of financing them.

b. Public hearings are conducted to obtain taxpayer comments. Public hearings are held no

later than 15 days prior to the beginning of the budget year.

c. Subsequent to the public hearings but no later than seven days prior to July 1, the budget is legally enacted through the passage of a resolution by the City Council.

d. Subsequent to City Council enactment, the adopted budget is filed with the office of the

State Auditor and Inspector.

The legal level of control at which expenditures may not legally exceed appropriations is the department level within a fund.

The City Manager may only transfer appropriations within expenditure categories within a department without City council approval. Transfers between expenditure categories of a department or fund and budget supplements made during the year are recommended by the City Manager and must be approved by the City Council. Supplemental appropriations must also be filed with the Office of State Auditor and Inspector.

Budgetary Accounting

The City prepares its budgets for all governmental fund types on a budgetary basis of accounting which differs from the modified accrual basis of accounting in the following areas:

Grants that do not result in cash flow and the related expenditures are not budgeted. Internal service fund charges for services are recorded as transfers in the budgetary basis.

98


June 30, 2017

The following is a reconciliation of those differences:


Notes to Budgetary Comparison ScheduleReconciliation of Budgetary Basis to Modified Accrual Basis

For the year ended June 30, 2017

Per Statement of Revenues, Expenditures,

and Changes in Fund Balance

Internal Service Fund Transfers

Non-Cash Grant Activity

Fund Combined for Reporting

Purposes

Per Budgetary Comparison

Schedule

General Fund:Total Revenues 53,506,106$ -$ -$ (14,611)$ 53,491,495$ Transfers In 18,393,519 - - (1,010,000) 17,383,519

Total Revenues and Other Financing Sources 71,899,625 - - (1,024,611) 70,875,014

Total Expenditures 20,098,404 (10,064,738) - (1,130,650) 8,903,016 Transfers Out 49,411,652 10,064,738 - - 59,476,390

Total Expenditures and Other Financing Uses 69,510,056 - - (1,130,650) 68,379,406

Net Changes in Fund Balance 2,389,569$ -$ -$ 106,039$ 2,495,608$

Fire Public Safety Limited Tax Fund:Total Revenues 8,345,316$ -$ (3,700,999)$ -$ 4,644,317$ Transfers In 15,885,554 - - - 15,885,554

Total Revenues and Other Financing Sources 24,230,870 - (3,700,999) - 20,529,871

Total Expenditures 23,224,040 - (3,700,999) - 19,523,041 Total Expenditures and Other Financing Uses 23,224,040 - (3,700,999) - 19,523,041

Net Changes in Fund Balance 1,006,830$ -$ -$ -$ 1,006,830$

Police Public Safety Limited Tax Fund:Total Revenues 3,702,768$ -$ (1,231,843)$ -$ 2,470,925$ Transfers In 19,486,282 - - - 19,486,282

Total Revenues and Other Financing Sources 23,189,050 - (1,231,843) - 21,957,207

Total Expenditures 23,758,802 - (1,231,843) - 22,526,959 Total Expenditures and Other Financing Uses 23,758,802 - (1,231,843) - 22,526,959

Net Changes in Fund Balance (569,752)$ -$ -$ -$ (569,752)$

All governmental funds of the city are required to have annual budgets. The City utilized encumbrances accounting under which purchase orders, contracts and other commitments for the expenditure funds are recorded in order to reserve a portion of the applicable appropriation. Encumbered appropriations at year end are lapsed and encumbrances to be honored are re-appropriated in the following budget year.

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June 30, 2017

Schedules of Required Supplementary InformationSCHEDULE OF THE CITY OF EDMOND'S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY OKLAHOMA POLICE PENSION & RETIREMENT SYSTEMLast 10 Fiscal Years*

For the year June 30,2015 2016 2017

City's proportion of the net pension liability 3.0197% 3.1355% 3.4051%

City's proportionate share of the net pension liability (asset) (1,016,693)$ 127,846$ 5,214,739$

City's covered-employee payroll 8,445,211$ 8,831,635$ 9,974,924$

City's proportionate share of the net pension liability (asset) as a percentage of its covered-employee payroll (12.04%) 1.45% 52.28%

Plan fiduciary net position as a percentage of the total pension liability (asset) 101.53% 99.82% 93.50%

Notes to Schedule:

Only three fiscal years are presented because 10-year data is not yet available. SCHEDULE OF CITY CONTRIBUTIONSOKLAHOMA POLICE PENSION & RETIREMENT SYSTEMLast 10 Fiscal Years *

2015 2016 2017

Statutorily required contribution 1,152,006$ 1,305,813$ 1,349,366$

Contributions in relation to the statutorily required contribution 1,152,006 1,305,813 1,349,366

Contribution deficiency (excess) -$ -$ -$


Contributions as a percentage of covered-employee payroll 13% 13% 13%

Notes to Schedule:

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

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June 30, 2017

Schedules of Required Supplementary InformationSCHEDULE OF THE CITY OF EDMOND'S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY OKLAHOMA FIREFIGHTERS PENSION & RETIREMENT SYSTEMLast 10 Fiscal Years*

For the year June 30,2015 2016 2017

City's proportion of the net pension liability 3.5619241% 3.566186% 3.764069%

City's proportionate share of the net pension liability 36,628,970$ 37,851,799$ 45,986,170$


City's proportionate share of the net pension liability as a percentage of its covered-employee payroll 376.49% 388.47% 436.76%

Plan fiduciary net position as a percentage of the total pension liability 68.12% 68.27% 64.87%

Notes to Schedule:


SCHEDULE OF CITY CONTRIBUTIONSOKLAHOMA FIREFIGHTERS PENSION & RETIREMENT SYSTEMLast 10 Fiscal Years

2015 2016 2017

Statutorily required contribution 1,364,114$ 1,474,042$ 1,501,841$

Contributions in relation to the statutorily required contribution 1,364,114 1,474,042 1,501,841

Contribution deficiency (excess) -$ -$ -$


Contributions as a percentage of covered-employee payroll 14% 14% 14%

Notes to Schedule:


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June 30, 2017

SCHEDULE OF CHANGES IN THE CITY'S NET PENSION LIABILITY AND RELATED RATIOSSINGLE-EMPLOYER DEFINED BENEFIT PENSION PLANLast 10 Fiscal Years*

For the year June 30.2015 2016 2017

Total pension liabilityService cost 2,465,096$ 2,619,414$ 2,822,532$ Interest 4,803,663 5,193,616 5,565,362 Changes of benefit terms 1,229,173 - - Difference between expected and actual experience 700,579 584,011 729,188 Benefit payments, including refunds of member contributions (2,164,180) (3,135,897) (3,610,999) Net change in total pension liability 7,034,331 5,261,144 5,506,083 Total pension liability-beginning 64,855,477 71,889,808 77,150,952 Total pension liability-ending (a) 71,889,808$ 77,150,952$ 82,657,035$

Plan fiduciary net positionContributions-employer 1,965,953$ 2,108,839$ 2,292,339$ Contributions-member 1,264,678 1,338,561 1,400,380 Net investment income 8,331,083 (2,627,009) (1,060,450) Benefit payments, including refunds of member contributions (2,164,180) (3,135,897) (3,610,999) Administrative expense (38,377) (30,748) (27,211) Net change in plan fiduciary net position 9,359,157 (2,346,254) (1,005,941) Plan fiduciary net position-beginning 56,730,705 66,089,862 63,743,608 Plan fiduciary net position-ending (b) 66,089,862$ 63,743,608$ 62,737,667$

City's net pension liability - ending (a)-(b) 5,799,946$ 13,407,344$ 19,919,368$

Plan fiduciary net position as a percentage of the total pension liability 91.93% 82.62% 75.90%

Covered-employee payroll 23,801,107$ 25,382,314$ 26,613,450$

City's net pension liability as a percentage of covered employee payroll 24.37% 52.82% 74.85%

Notes to Schedule:


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June 30, 2017

SCHEDULE OF EMPLOYER CONTRIBUTIONSSINGLE-EMPLOYER DEFINED BENEFIT PENSION PLANLast 10 Fiscal Years

For the year June 30.2013 2014 2015 2016 2017

Actuarially determined contribution 1,846,314$ 2,004,213$ 2,195,239$ 2,397,984$ 2,569,913$ Contributions in relation to the actuarially determined contribution 1,822,720 1,965,953 2,108,839 2,292,339 2,441,134 Contribution deficiency (excess) 23,594$ 38,260$ 86,400$ 105,645$ 128,779$

Covered-employee payroll 22,598,708$ 24,089,104$ 25,496,393$ 26,673,905$ 27,194,847$

Contributions as a percentage of covered-employee payroll 8.17% 8.32% 8.61% 8.99% 9.45%

Notes to Schedule:

Valuation date: Actuarially determined contribution rates are calculated as of June 30, one year prior to the end of the fiscal year in which contributions are reported.

Methods and assumptions used to determine contribution rates:

Actuarial cost method Entry Age Normal

Amortization method Level dollar, rolling

Remaining amortization period 30 years rolling

Asset valuation method 5-year smoothed market (20% annual write up of cumulative gain or loss relative to assumed return)

Inflation 2.5%

Salary Increases 5.0% average including inflation plus age-scale

Investment rate of return 7.25%, net of pension plan investment expense, including inflation

Retirement age Plan experience as last measured in 2011

Mortality Beginning with the 2016 actuarial valuation, assumed life expectancies utilized the RP-2000 Projected Mortality Table.

(Continued)

SCHEDULE OF EMPLOYER CONTRIBUTIONS (Continued)SINGLE-EMPLOYER DEFINED BENEFIT PENSION PLAN Last 10 Fiscal Years

For the year June 30.2008 2009 2010 2011 2012

Actuarially determined contribution 1,135,240$ 1,334,008$ 1,879,700$ 1,803,185$ 1,803,629$ Contributions in relation to the actuarially determined contribution 1,407,776 1,271,783 1,866,908 1,811,247 1,886,892 Contribution deficiency (excess) (272,536)$ 62,225$ 12,792$ (8,062)$ (83,263)$

Covered-employee payroll 19,730,579$ 21,223,530$ 22,521,201$ 21,588,603$ 22,630,229$

Contributions as a percentage of covered-employee payroll 5.75% 6.29% 8.35% 8.35% 7.97%

103


June 30, 2017

PENSION FUND - SCHEDULE OF INVESTMENT RETURNSLast 10 Fiscal Years *

Year Ended Year Ended Year EndedJune 30. 2015 June 30. 2016 June 30. 2017

Annual money-weighted rate of return, net of investment expense 14.55% -3.97% -1.66%

Notes to Schedule:


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June 30, 2017

Schedules of Required Supplementary InformationOPEB ACTUARIAL VALUATIONFUNDING SCHEDULESJune 30, 2017

The funded status and funding progress of the City's defined benefit OPEB plan for the most recent actuarial valuations is as follows:

July 1, 2010 July 1, 2011 July 1, 2012 July 1, 2013 July 1, 2014 July 1, 2015 July 1, 2016

Actuarial accrued liability - AAL (a) 3,770,440$ 4,239,856$ 4,837,346$ 4,854,278$ 4,929,613$ 5,344,565$ 5,208,062$ Actuarial value of plan assets (b) - - - - - - - Unfunded actuarial accrued liability-UAAL (funding excess) (a)-(b) 3,770,440 4,239,856 4,837,346 4,854,278 4,929,613 5,344,565 5,208,062

Funded ratio (b)/(a) 0% 0% 0% 0% 0% 0% 0%Covered payroll © 33,132,000$ 31,860,000$ 31,783,016$ 32,710,000$ 36,200,000$ 37,500,000$ 39,000,000$

UAAL (funding excess) as a % of covered payroll [UAAL/( c)] 11% 13% 15% 15% 14% 14% 13%

105


106

OTHER SUPPLEMENTARY INFORMATION

CITY OF EDMOND, OKLAHOMA OTHER SUPPLEMENTARY INFORMATION

June 30, 2017

GENERAL FUND

Under GASB Statement 54 certain funds no longer met the definition to be presented as Special Revenue Funds. Those funds became accounts of the General Fund for reporting purpose. For reporting purposes, the General Fund contains the following subfund accounts:

GENERAL FUND - The primary operating fund of the City. The General Fund is reported as a major governmental fund. It is used to account for all activities except those legally or administratively required to be accounted for in other funds. REAL PROPERTY FUND - The Real Property Fund has been established to accumulate resources for future real property acquisitions of the City. Financing is provided by transfers of investment earnings from the Hospital Sale Trust Fund. EDMOND ELECTRIC ECONOMIC DEVELOPMENT FUND – The Economic Development Fund has been established to stimulate the growth of Edmond's economy by offering services that facilitate the growth and expansion of new and existing businesses and generating opportunities to increase the sales tax base of the City of Edmond.

PARK SPECIAL EVENTS – The Park Special Events Fund has been established to account for donations and fees related to culture and recreation events.

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Balance Sheet General Fund Accounts

June 30, 2017

General FundReal Property

Fund

Edmond Electric Economic

DevelopmentPark Special

Events Total General

Fund ASSETS

Cash and cash equivalents 294,395$ 28,091$ 127,291$ 11,421$ 461,198$ Investments 1,265,525 121,761 551,754 49,506 1,988,546 Due from other funds 1,140,574 - - - 1,140,574 Due from other governments 6,152,547 - - - 6,152,547 Accrued interest receivable 2,504 241 1,092 98 3,935 Other receivables 1,057,738 - - - 1,057,738

Total assets 9,913,283$ 150,093$ 680,137$ 61,025$ 10,804,538$

LIABILITIES AND FUND BALANCESLiabilities:

Accounts payable 249,901$ -$ -$ -$ 249,901$ Due to other funds 18,016 - - - 18,016 Unearned revenue 180,372 - - - 180,372 Amounts held in escrow 358,118 - - - 358,118

Total liabilities 806,407 - - - 806,407

DEFERRED INFLOWS OF RESOURCESUnavailable revenue 454,718 144 651 59 455,572

Total deferred inflows of resources 454,718 144 651 59 455,572

Fund balances:Restricted 2,660,047 - - - 2,660,047 Assigned 572,378 149,949 679,486 60,966 1,462,779 Unassigned 5,419,733 - - - 5,419,733

Total fund balances 8,652,158 149,949 679,486 60,966 9,542,559 Total liabilities, deferred inflows of resources and fund balances 9,913,283$ 150,093$ 680,137$ 61,025$ 10,804,538$

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June 30, 2017

City of Edmond, OklahomaStatement of Revenues, Expenditures and Changes in Fund Balances

General Fund AccountsFor the Year Ended June 30, 2017

General FundReal Property

Fund

Edmond Electric Economic

Development Park Special Events Total General Fund REVENUES

Sales and use taxes 38,693,158$ -$ -$ -$ 38,693,158$ Franchise and public service taxes 2,142,557 - - - 2,142,557 Intergovernmental 1,976,671 - - - 1,976,671 Charges for services 6,774,222 - - 5,966 6,780,188 Fines and forfeitures 2,267,734 - - - 2,267,734 Licenses and permits 1,452,924 - - - 1,452,924 Investment income 48,584 (9,348) 5,067 316 44,619 Miscellaneous 135,645 - - 12,610 148,255

Total revenues 53,491,495 (9,348) 5,067 18,892 53,506,106


General government 5,244,636 441 125,098 - 5,370,175 Public safety 2,955,869 - - - 2,955,869 Health and sanitation 648,896 - - - 648,896 Culture, parks and recreation 3,718,173 - - 7 3,718,180 Economic development - - - - - Streets and highways 5,377,604 - - - 5,377,604 Capital Outlay 1,022,576 1,005,104 - - 2,027,680

Total Expenditures 18,967,754 1,005,545 125,098 7 20,098,404 Excess (deficiency) of revenues over expenditures 34,523,741 (1,014,893) (120,031) 18,885 33,407,702

OTHER FINANCING SOURCES (USES)Transfers in 17,383,519 1,010,000 - - 18,393,519 Transfers out (49,411,652) - - - (49,411,652)

Total other financing sources and uses (32,028,133) 1,010,000 - - (31,018,133) Net change in fund balances 2,495,608 (4,893) (120,031) 18,885 2,389,569

Fund balances - beginning 6,156,550 154,842 799,517 42,081 7,152,990

Fund balances - ending 8,652,158$ 149,949$ 679,486$ 60,966$ 9,542,559$

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June 30, 2017

Budget ActualVariance Positive

(Negative) Budget ActualVariance Positive

(Negative)

Revenues:

Charges for services -$ -$ -$ 3,250$ 5,966$ 2,716$

Investment income 5,500 5,067 (433) - 316 316

Miscellaneous - - - 5,000 12,610 7,610

Total Revenues 5,500$ 5,067$ (433)$ 8,250$ 18,892$ 10,642$

Expenditures:

General Government:

Personal services -$ -$ -$ -$ -$ -$

Materials and supplies - - - - - -

Other services and charges 141,000 125,098 15,902 - - -

Capital outlay - - - - - -

Debt service - - - - - -

Total General Government 141,000$ 125,098$ 15,902$ -$ -$ -$


Personal services -$ -$ -$ -$ -$ -$

Materials and supplies - - - 3,490 7 3,483

Other service and charges - - - 4,650 - 4,650


Total Parks and Recreation -$ -$ -$ 8,140$ 7$ 8,133$

Total Expenditures 141,000$ 125,098$ 15,902$ 8,140$ 7$ 8,133$

Revenues and other sources over (under) expenditures and other uses (135,500) (120,031) 15,469 110 18,885 18,775

Fund Balance-beginning of year 799,517 799,517 - 42,081 42,081 -

Fund Balance -end of year 664,017$ 679,486$ 15,469$ 42,191$ 60,966$ 18,775$

City of Edmond, OklahomaSchedule of Revenues, Expenditures and Changes in Fund Balance-Budgetary Basis

Budget and Actual - General Funds CombinedFor the year ended June 30, 2017

EDMOND ELECTRIC ECONOMIC DEVELOPMENT PARKS SPECIAL EVENTS FUND

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June 30, 2017

(Continued)


(Negative)

Revenues:

Charges for services -$ -$ -$

Investment income 550 (9,348) (9,898)

Miscellaneous 1,000,000 1,010,000 10,000

Total Revenues 1,000,550$ 1,000,652$ 102$

Expenditures:

General Government:

Personal services -$ -$ -$

Materials and supplies - - -

Other services and charges 1,095 441 654

Capital outlay 1,010,000 1,005,104 4,896

Debt service - - -

Total General Government 1,011,095$ 1,005,545$ 5,550$


Personal services -$ -$ -$


Other service and charges - - -

Capital outlay - - -

Total Parks and Recreation -$ -$ -$

Total Expenditures 1,011,095$ 1,005,545$ 5,550$

Revenues and other sources over (under) expenditures and other uses (10,545) (4,893) 5,652

Fund Balance-beginning of year 154,842 154,842 -

Fund Balance -end of year 144,297$ 149,949$ 5,652$

City of Edmond, OklahomaSchedule of Revenues, Expenditures and Changes in Fund Balance-Budgetary Basis

Budget and Actual - General Funds CombinedFor the year ended June 30, 2017

REAL PROPERTY FUND

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NONMAJOR GOVERNMENTAL FUNDS Special Revenue Funds

Special Revenue Funds are used to account for the proceeds of specific revenue sources that are normally restricted to expenditures for specified purposes.

CDBG ENTITLEMENT - This fund was established by the City to account for the grants received from the Federal government through the Oklahoma Department of Commerce under various Community Development Block Grant programs.

ASSET FORFEITURE FUND - The Asset Forfeiture Fund has been established to account for assets that are equitably distributed by the Drug Enforcement Administration to state and local agencies that directly participate in the law enforcement effort that leads to the seizure of assets used in illegal drug activities. The assets received must be for only law enforcement purposes such as enhancements to future investigations, law enforcement training, equipment, operations and overtime for enforcement activities.

SENIOR CITIZENS FUND - This fund was established to account for dedicated revenues received for the benefit of senior citizens, including grants, donations and other resources. The expenditures of the fund are administratively restricted for the benefit of senior citizens' activities or programs.

CONVENTION & VISITORS BUREAU – The Convention & Visitors Bureau Fund accounts for the Hotel/Motel tax revenues that the City collects. It is restricted for tourism, conventions, and visitors’ bureau.

HOSPITAL SALE TRUST FUND –The Hospital Sale Trust Fund was established in 1981 to account for the proceeds of approximately $7,200,000 received from the sale of the Edmond Memorial Hospital to the Hospital Corporation of America. Use of the trust principal must first be approved by a vote of the citizens of the City. Investment earnings from the trust may be appropriated without voter approval but are restricted to capital improvements.

AMBULATORY SERVICE FUND – The Ambulatory Service Fund provides funding of the City of Edmond’s Ambulance Services through the regional Emergency Medical Services Authority (EMSA). It primarily covers those citizens who have elected to participate in the TotalCare Program which is a monthly fee of $3.00 paid through utility billing which began in FY 09-10.

(continued)

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June 30, 2017

Capital Project Funds

The Capital Project Funds have been established to account for all major capital improvements, except those accounted for in proprietary type funds, which are financed by the City's sales tax revenue bond issues, General Fund transfers, and other designated sources.

CEMETERY CARE FUND - The Cemetery Care Fund has been established to account for 12.5% of all monies received from the sale of lots and interments in accordance with state law. Monies received must be used to purchase lands for cemeteries and for making capital improvements. Interest earned may be used for improving, caring for, and embellishing cemetery property.

PARK SALES TAX FUND - The Park Sales Tax Fund has been established to account for operations and facility improvement costs of the City’s park and recreation system. Financing is provided by a permanent one-eighth cent sales tax approved by the voters in September 1992 and expanded in 2000 to include all city parks.

ART IN PUBLIC PLACES FUND – The Art in Public Places Fund has been established to account for art acquisitions by the City. Financing is provided by donations, investment earnings and other City funds as determined by the City Council.

CAPITAL IMPROVEMENT FUND - The Capital Improvement Fund was established to account for major capital improvements that are financed by the General Fund and other designated sources which are outlined in the City's five year Capital Improvements program. The fund is funded primarily from General Fund transfers.

ROADWAY IMPROVEMENT FUND - The Roadway Improvement Fund has been established to account for street construction and improvement projects as approved by the voters on May 10, 1994. The improvements are financed by a temporary seven-eighths cent sales tax which ended in FY1995. The remainder of funds are planned to be expended on street improvements.

1996 CAPITAL IMPROVEMENT TAX FUND - The 1996 Capital Improvements Tax Fund has been established to account for various capital improvements as recommended by the Citizens Capital Improvements Planning Committee and approved by the voters on August 27, 1996. The improvements are being financed by a three-fourths cent sales tax for a five year period beginning November 1, 1996. Funded from the tax are street improvements, radio communication system and computer aided dispatch, water treatment plant expansion, library expansion, senior citizens center, and a city wide sidewalk project. 2017 CAPITAL IMPROVEMENT FUND - The 2017 Capital Improvements Fund has been established to account for various capital improvements as recommended by the Capital Improvement Project Advisory Board. Their recommendations are forwarded to the City Council for their approval. This fund replaces the 2012 Public Safety Center-Capital Improvements Tax Fund, established to account for the capital construction cost of a new Public Safety Center and other capital improvements. The improvements are being financed by a 10 year one-half cent sales tax approved by voters on April 2016 and commenced on April 1, 2017 and will run for ten years, unless extended by the voters.

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June 30, 2017

CDBG Entitlement

FundAsset Forfeiture

FundSenior Center

Fund

Convention and Visitor's Bureau

FundHospital Sale

Trust FundAmbulatory

Service FundASSETSCash and cash equivalents -$ 119,520$ 48,465$ 11,026$ 8,269,143$ 116,530$ Investments - 518,067 210,075 47,792 (3,723) 505,109 Due from other governments 67,070 - - - - - Accrued interest receivable - 1,024 415 95 - 999 Other receivable - 200 - 48,305 3,303 34,189

Total assets 67,070$ 638,811$ 258,955$ 107,218$ 8,268,723$ 656,827$


Accounts payable 5,558$ -$ 1,666$ 29,769$ -$ -$ Other liability - - - - - - Due to other funds 111,558 - - - 1,011,000 2,248

Total liabilities 117,116 - 1,666 29,769 1,011,000 2,248

DEFERRED INFLOWS OF RESOURCESUnavailable revenue - 612 247 57 - 596

Total deferred inflows of resources - 612 247 57 - 596

Fund balances:Restricted - 603,028 241,824 58,498 7,257,723 638,605 Committed - - 3,444 - - - Assigned - 35,171 11,774 18,894 - 15,378 Unassigned (deficit) (50,046) - - - - -

Total fund balances (50,046) 638,199 257,042 77,392 7,257,723 653,983 Total liabilities, deferred inflows of resources and fund balances 67,070$ 638,811$ 258,955$ 107,218$ 8,268,723$ 656,827$

(Continued)

City of Edmond, OklahomaCombining Balance Sheet

Nonmajor Governmental FundsJune 30, 2017

SPECIAL REVENUE FUNDS

114


June 30, 2017

Cemetery CarePark Sales Tax

FundArt in Public Places Fund

Capital Improvement

Fund

Roadway Improvement

Fund1996 CIP Tax

Fund


Fund

Total Governmental

FundsASSETSCash and cash equivalents 14,875$ 189,259$ 14,958$ 214,467$ 2,076$ 44,408$ 246,518$ 9,291,245$ Investments 64,475 820,356 64,835 929,623 9,000 192,489 1,068,550 4,426,648 Due from other governments - 315,344 - - - - 1,261,377 1,643,791 Accrued interest receivable 128 1,624 129 1,839 18 381 2,114 8,766 Other receivable - 77,012 79 - - - - 163,088

Total assets 79,478$ 1,403,595$ 80,001$ 1,145,929$ 11,094$ 237,278$ 2,578,559$ 15,533,538$


Accounts payable -$ 511,830$ 4,400$ 1,892$ -$ 49,534$ 13,307$ 617,956$ Other liability - - - - - 2,607 - 2,607 Due to other funds - - 5 - - - - 1,124,811

Total liabilities - 511,830 4,405 1,892 - 52,141 13,307 1,745,374

DEFERRED INFLOWS OF RESOURCESUnavailable revenue 76 969 77 1,099 11 227 1,262 5,233

Total deferred inflows of resources 76 969 77 1,099 11 227 1,262 5,233

Fund balances:Restricted 74,593 559,909 67,893 - 10,199 139,111 2,563,990 12,215,373 Committed - - - - - - - 3,444 Assigned 4,809 330,887 7,626 1,142,938 884 45,799 - 1,614,160 Unassigned (deficit) - - - - - - - (50,046)

Total fund balances 79,402 890,796 75,519 1,142,938 11,083 184,910 2,563,990 13,782,931 Total liabilities, deferred inflows of resources and fund balances 79,478$ 1,403,595$ 80,001$ 1,145,929$ 11,094$ 237,278$ 2,578,559$ 15,533,538$

City of Edmond, OklahomaCombining Balance Sheet

Nonmajor Governmental FundsJune 30, 2017

CAPITAL PROJECT FUNDS

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June 30, 2017

CDBG Entitlement

FundAsset Forfeiture

FundSenior Center

Fund

Convention and Visitor's Bureau

FundHospital Sale

Trust FundAmbulatory

Service FundREVENUES

Sales and use taxes -$ -$ -$ -$ -$ -$ Hotel/motel taxes - - - 464,292 - - Intergovernmental 444,352 - - - - - Charges for services - - 1,784 - - 859,838 Investment earnings - 3,789 1,633 493 8,059 3,557 Investment earnings on interfund loans - - - - 61,930 - Miscellaneous - 63,917 51,694 17,000 - 1

Total revenues 444,352 67,706 55,111 481,785 69,989 863,396


General government 83,340 - - 526,959 2,200 - Public Safety - 34,708 - - - - Health and welfare - - - - - 778,052

Culture, parks and recreation - - 55,855 - - - Capital Outlay 410,155 19,000 - - - -

Total Expenditures 493,495 53,708 55,855 526,959 2,200 778,052 Excess (deficiency) of revenues over expenditures (49,143) 13,998 (744) (45,174) 67,789 85,344

OTHER FINANCING SOURCES (USES)Transfers in - - - - - - Transfers out - - - - (1,010,000) -

Total other financing sources and uses - - - - (1,010,000) - Net change in fund balances (49,143) 13,998 (744) (45,174) (942,211) 85,344

Fund balances - beginning (903) 624,201 257,786 122,566 8,199,934 568,639

Fund balances - ending (50,046)$ 638,199$ 257,042$ 77,392$ 7,257,723$ 653,983$

(Continued)


City of Edmond, OklahomaCombining Statement of Revenues, Expenditures and Changes in Fund Balances

Nonmajor Governmental FundsFor the Year Ended June 30, 2017

116


June 30, 2017

Cemetery CarePark Sales Tax

FundArt in Public Places Fund

Capital Improvement

Fund

Roadway Improvement

Fund1996 CIP Tax

Fund


Fund

Total-Other Governmental

FundsREVENUES

Sales and use taxes -$ 2,107,465$ -$ -$ -$ -$ 2,309,292$ 4,416,757$ Hotel/motel taxes - - - - - - - 464,292 Intergovernmental - - - - - - - 444,352 Charges for services 22,064 - - - - - - 883,686 Investment earnings 554 13,816 337 7,294 68 1,086 (198) 40,488 Investment earnings on interfund loans - - - - - - - 61,930 Miscellaneous - 77,534 102,069 - - - - 312,215

Total revenues 22,618 2,198,815 102,406 7,294 68 1,086 2,309,094 6,623,720


General government 12 - - 146 1 24 7 612,689 Public Safety - - - - - - - 34,708 Health and welfare - - - - - - - 778,052

Culture, parks and recreation - 1,258,738 15,173 - - - - 1,329,766 Capital Outlay 42,080 2,153,069 129,817 109,072 - 2,607 13,307 2,879,107

Total Expenditures 42,092 3,411,807 144,990 109,218 1 2,631 13,314 5,634,322 Excess (deficiency) of revenues over expenditures (19,474) (1,212,992) (42,584) (101,924) 67 (1,545) 2,295,780 989,398

OTHER FINANCING SOURCES (USES)Transfers in - - 44,800 48,000 - - 268,210 361,010 Transfers out - (100,000) - - - - - (1,110,000)

Total other financing sources and uses - (100,000) 44,800 48,000 - - 268,210 (748,990) Net change in fund balances (19,474) (1,312,992) 2,216 (53,924) 67 (1,545) 2,563,990 240,408

Fund balances - beginning 98,876 2,203,788 73,303 1,196,862 11,016 186,455 - 13,542,523

Fund balances - ending 79,402$ 890,796$ 75,519$ 1,142,938$ 11,083$ 184,910$ 2,563,990$ 13,782,931$

City of Edmond, OklahomaCombining Statement of Revenues, Expenditures and Changes in Fund Balances

Nonmajor Governmental FundsFor the Year Ended June 30, 2017


117


June 30, 2017



(Negative)

Revenues:

Taxes -$ -$ -$ -$ -$ -$

Intergovernmental 631,274 444,352 (186,922) - - -

Charges for services - - - - - -

Investment income - - - 2,000 3,789 1,789

Miscellaneous - - - 41,920 63,917 21,997

Total Revenues 631,274 444,352 (186,922) 43,920 67,706 23,786

General Government:

Personal services - - - - - -


Other services and charges - - - - - -



Total General Government - - - - - -

Public Safety:


Materials and supplies - - - 32,450 31,340 1,110

Other services and charges - - - 8,990 3,368 5,622

Capital outlay - - - 19,000 19,000 -

Total Public Safety - - - 60,440 53,708 6,732



Material and supplies - - - - - -

Other services and charges - - - -


Total Parks and Recreation - - - - - -

Health & Welfare:





Total Health & Welfare - - - - - -

Economic Development & Opp.

Personal services 43,965 43,595 370 - - -

Materials and supplies 750 288 462 - - -



Total Economic Development & Opp 646,937 493,495 153,442 - - -

Street:





Total Street - - - - - -

Total Expenditures 646,937 493,495 153,442 60,440 53,708 6,732

Revenues over (under) expenditures (15,663)$ (49,143)$ (33,480)$ (16,520)$ 13,998$ 30,518$

Other financing sources (uses):

Transfers from other funds - - - - - -

Transfers to other funds - - - - - -

Revenues and other sources over (under) expenditures and other uses (15,663) (49,143) (33,480) (16,520) 13,998 30,518

Fund Balance-beginning of year (903) (903) - 624,201 624,201 -

Fund Balance -end of year (16,566)$ (50,046)$ (33,480)$ 607,681$ 638,199$ 30,518$

(continued)


SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE-BUDGETARY BASIS

BUDGET AND ACTUAL - NONMAJOR GOVERNMENTAL FUNDS


CDBG ENTITLEMENT


ASSET FORFEITURE FUND

118


June 30, 2017



(Negative)

Revenues:

Taxes -$ -$ -$ 495,000$ 464,292$ (30,708)$

Intergovernmental - - - - - -

Charges for services 1,379 1,784 405 - - -

Investment income 1,750 1,633 (117) 500 493 (7)

Miscellaneous 54,732 51,694 (3,038) 19,000 17,000 (2,000)

Total Revenues 57,861 55,111 (2,750) 514,500 481,785 (32,715)

General Government:

Personal services - - - 246,336 223,596 22,740





Total General Government - - - 556,487 526,959 29,528

Public Safety:





Total Public Safety - - - - - -



Material and supplies 8,162 4,209 3,953 - - -

Other services and charges 58,250 51,646 6,604 - -


Total Parks and Recreation 66,412 55,855 10,557 - - -

Health & Welfare:











Total Economic Development & Opp - - - - - -

Street:







Revenues over (under) expenditures (8,551)$ (744)$ 7,807$ (41,987)$ (45,174)$ (3,187)$




Revenues and other sources over (under) expenditures and other uses (8,551) (744) 7,807 (41,987) (45,174) (3,187)


Fund Balance -end of year 249,235$ 257,042$ 7,807$ 80,579$ 77,392$ (3,187)$

(continued)



BUDGET AND ACTUAL - NONMAJOR GOVERNEMNTAL FUNDS



SENIOR CENTER FUND CONVENTION AND VISITOR'S BUREAU FUND

119


June 30, 2017



(Negative)

Revenues:

Taxes -$ -$ -$ -$ -$ -$


Charges for services - - - 847,908 859,838 11,930

Investment income - 69,989 69,989 2,000 3,557 1,557

Miscellaneous 7,181,060 - (7,181,060) - 1 1

Total Revenues 7,181,060 69,989 (7,111,071) 849,908 863,396 13,488

General Government:



Other services and charges 2,200 2,200 - - - -



Total General Government 2,200 2,200 - - - -

Public Safety:












Health & Welfare:





Total Health & Welfare - - - 861,843 778,052 83,791







Street:






Total Expenditures 2,200 2,200 - 861,843 778,052 83,791

Revenues over (under) expenditures 7,178,860$ 67,789$ (7,111,071)$ (11,935)$ 85,344$ 97,279$



Transfers to other funds (1,010,000) (1,010,000) - - - -

Revenues and other sources over (under) expenditures and other uses 6,168,860 (942,211) (7,111,071) (11,935) 85,344 97,279

Fund Balance-beginning of year 8,199,934 8,199,934 - 568,639 568,639 -

Fund Balance -end of year 14,368,794$ 7,257,723$ (7,111,071)$ 556,704$ 653,983$ 97,279$

(continued)






AMBULATORY SERVICE FUNDHOSPITAL SALES TRUST FUND

120


June 30, 2017



(Negative)

Revenues:

Taxes -$ -$ -$ 2,132,392$ 2,107,465$ (24,927)$


Charges for services 18,514 22,064 3,550 - - -

Investment income 1,000 554 (446) 10,000 13,816 3,816

Miscellaneous - - - 50,000 77,534 27,534

Total Revenues 19,514 22,618 3,104 2,192,392 2,198,815 6,423

General Government:



Other services and charges 75 12 63 - - -

Capital outlay 49,366 42,080 7,286 - - -


Total General Government 49,441 42,092 7,349 - - -

Public Safety:







Personal services - - - 395,820 395,818 2

Material and supplies - - - 117,570 117,564 6

Other services and charges - - 768,428 745,356 23,072

Capital outlay - - - 2,556,645 2,153,069 403,576

Total Parks and Recreation - - - 3,838,463 3,411,807 426,656

Health & Welfare:












Street:






Total Expenditures 49,441 42,092 7,349 3,838,463 3,411,807 426,656

Revenues over (under) expenditures (29,927)$ (19,474)$ 10,453$ (1,646,071)$ (1,212,992)$ 433,079$



Transfers to other funds - - - (100,000) (100,000) -

Revenues and other sources over (under) expenditures and other uses (29,927) (19,474) 10,453 (1,746,071) (1,312,992) 433,079

Fund Balance-beginning of year 98,876 98,876 - 2,203,788 2,203,788 -


(continued)

CEMETERY CARE PARK SALES TAX FUNDS






121


June 30, 2017



(Negative)

Revenues:

Taxes -$ -$ -$ -$ -$ -$



Investment income 3,000 337 (2,663) 5,000 7,294 2,294

Miscellaneous 103,000 102,069 (931) - - -

Total Revenues 106,000 102,406 (3,594) 5,000 7,294 2,294

General Government:



Other services and charges - - - 200 146 54

Capital outlay - - - 464,105 67,409 396,696


Total General Government - - - 464,305 67,555 396,750

Public Safety:








Material and supplies 25 - 25 - - -

Other services and charges 21,000 15,173 5,827 - -

Capital outlay 270,744 129,817 140,927 - - -

Total Parks and Recreation 291,769 144,990 146,779 - - -

Health & Welfare:












Street:




Capital outlay - - - 121,451 41,663 79,788

Total Street - - - 121,451 41,663 79,788


Revenues over (under) expenditures (185,769)$ (42,584)$ 143,185$ (580,756)$ (101,924)$ 478,832$


Transfers from other funds 156,750 44,800 (111,950) 48,000 48,000 -


Revenues and other sources over (under) expenditures and other uses (29,019) 2,216 31,235 (532,756) (53,924) 478,832

Fund Balance-beginning of year 73,303 73,303 - 1,196,862 1,196,862 -

Fund Balance -end of year 44,284$ 75,519$ 31,235$ 664,106$ 1,142,938$ 478,832$

(continued)

ART IN PUBLIC PLACES FUND CAPITAL IMPROVEMENT FUND


BUDGET AND ACTUAL - NONMAJOR GOVERNEMNTAL FUNDS




122


June 30, 2017



(Negative)

Revenues:

Taxes -$ -$ -$ -$ -$ -$



Investment income 25 68 43 800 1,086 286

Miscellaneous - - - - - -

Total Revenues 25 68 43 800 1,086 286

General Government:



Other services and charges - - - 25 24 1



Total General Government - - - 25 24 1

Public Safety:












Health & Welfare:












Street:



Other services and charges - 1 (1) - - -

Capital outlay 6,851 - 6,851 182,572 2,607 179,965

Total Street 6,851 1 6,850 182,572 2,607 179,965

Total Expenditures 6,851 1 6,850 182,597 2,631 179,966

Revenues over (under) expenditures (6,826)$ 67$ 6,893$ (181,797)$ (1,545)$ 180,252$




Revenues and other sources over (under) expenditures and other uses (6,826) 67 6,893 (181,797) (1,545) 180,252



(continued)

1996 CIP TAX FUNDROADWAY IMPROVEMENT FUND






123


June 30, 2017


(Negative)

Revenues:

Taxes -$ 2,309,292$ 2,309,292$

Intergovernmental - - -

Charges for services - - -

Investment income - (198) (198)

Miscellaneous - - -

Total Revenues - 2,309,094 2,309,094

General Government:

Personal services - - -

Materials and supplies 7 7 -

Other services and charges - - -

Capital outlay 268,210 13,307 254,903

Debt service - - -

Total General Government 268,217 13,314 254,903

Public Safety:





Total Public Safety - - -



Material and supplies - - -

Other services and charges - -


Total Parks and Recreation - - -

Health & Welfare:





Total Health & Welfare - - -






Total Economic Development & Opp - - -

Street:





Total Street - - -

Total Expenditures 268,217 13,314 254,903

Revenues over (under) expenditures (268,217)$ 2,295,780$ 2,563,997$


Transfers from other funds - 268,210 268,210

Transfers to other funds - - -

Revenues and other sources over (under) expenditures and other uses (268,217) 2,563,990 2,832,207

Fund Balance-beginning of year - - -

Fund Balance -end of year (268,217)$ 2,563,990$ 2,832,207$

(continued)


2017 CAPITAL IMPROVEMENT TAX FUND





124


June 30, 2017


(Negative) Budget Actual

Variance Positive

(Negative)

REVENUES

Taxes 12,724,946$ 12,644,793$ (80,153)$ 7,473,085$ 6,120,570$ (1,352,515)$ Intergovernmental - - ‐ - - ‐ Licenses and permits - - ‐ - - ‐ Investment income 225,000 319,944 94,944 15,000 48,804 33,804 Miscellaneous 60,000 434,928 374,928 - - ‐ Contributed capital - - ‐ - - ‐ Investment income ‐ ‐ ‐ - ‐ ‐ Miscellaneous ‐ ‐ ‐ - ‐ ‐

Total revenues 13,009,946 13,399,665 389,719 7,488,085 6,169,374 (1,318,711)

EXPENDITURES

General Government:

Materials and supplies 200 - 200 - - -


Capital outlay 700,000 191,985 508,015 - - -

Debt service 8,440,848 8,472,379 (31,531) - - -

Total General Government 9,322,332 8,792,702 529,630 - - ‐

Public Safety:


Other services and charges - - - 102,803 146,925 (44,122)

Capital outlay - - - 3,274,642 720,892 2,553,750

Debt service - - - 300,000 61,930 238,070

Total Public Safety - - ‐ 3,777,445 930,934 2,846,511


Capital outlay 3,363,451 2,536,226 827,225 750,000 750,000 ‐ Total Parks and Recreation 3,363,451 2,536,226 827,225 750,000 750,000 ‐

Economic Development & Opp:

Capital outlay 6,164,650 213,540 5,951,110 - - ‐ Total Economic Development & Opp 6,164,650 213,540 5,951,110 - - ‐

Community Development:

Capital outlay 400,000 10,064 389,936 - - ‐ Total Community Development 400,000 10,064 389,936 - - ‐

Street:

Capital outlay 10,878,869 9,878,790 1,000,079 - - ‐

Total Street 10,878,869 9,878,790 1,000,079 - - ‐

Total Expenditures 30,129,302 21,431,322 8,697,980 4,527,445 1,680,934 2,846,511

Revenues over (under) expenditures (17,119,356) (8,031,657) 9,087,699 2,960,640 4,488,440 1,527,800


Transfers to other funds - (25,500) (25,500) (7,280,196) (268,210) 7,011,986

Total of other financing resources - (25,500) (25,500) (7,280,196) (268,210) 7,011,986

Revenues and other sources over (under) expenditures and other uses (17,119,356) (8,057,157) 9,062,199 (4,319,556) 4,220,230 8,539,786

Fund Balance-beginning of year 32,095,561 32,095,561 - (1,998,210) (1,998,210) -

Fund Balance -end of year 14,976,205$ 24,038,404$ 9,062,199$ (6,317,766)$ 2,222,020$ 8,539,786$

Capital Project Funds2000 Capital Improvement Tax Fund 2012 Public Safety Center Tax Fund



BUDGET AND ACTUAL - MAJOR GOVERNMENTAL CAPITAL PROJECT FUND


125


June 30, 2017

NONMAJOR ENTERPRISE FUNDS

The City operates eight enterprise funds under the legal entity of the Edmond Public Works Authority ("EPWA"), a public trust created under applicable Oklahoma statutes on October 6, 1970, with the City named as the beneficiary thereof. The Electric, Water and Wastewater enterprise funds are reported as Major funds. The remaining five enterprise funds are reported as nonmajor and include the following:

SANITATION - Established to acquire and furnish sanitation services to the citizens, receive all revenues generated, pay debt service requirements on the debt issued related to the sanitation facility, pay all operating expenses, and finance future sanitation improvements.

ARCADIA LAKE - Established to account for revenues and expenses related to the operations of the Arcadia Lake and Recreation Facility.

DRAINAGE - Established to account for a fee assessed on each customer’s utility bill for construction and further improvements to the City’s drainage system.

KICKINGBIRD GOLF COURSE - The Golf Course Fund accounts for the costs of operating and maintaining the City’s 18-hole municipal golf course. Revenues are generated through green fees, cart rentals, driving range fees and restaurant operations.

YOURGOVSHOP - The YourGovShop Fund is a cooperative purchasing service, operated by the City, which provides its partners and members the lowest competitive prices for good and services, as well as a reduction in the administrative costs of purchasing. Financing is provided by revenues generated from rebates, membership fees and General Fund transfers.

CityLink – The CityLink Fund is for the costs of operating and maintaining Edmond’s public transportation service through a reliable, affordable, customer-friendly transportation service to the residents of Edmond for access to employment, shopping, medical, education and social destinations. The General Fund along with sponsorship funds the operations of this service.

126


June 30, 2017

PWA Sanitation Fund

PWA Arcadia Lake Fund

PWA Drainage Fund

Kickingbird Golf Course Fund

Yourgovshop Fund CityLink Total

ASSETSCurrent assets:

Cash and cash equivalents 1,267,202$ 34,345$ 1,429,912$ 75,132$ 47,968$ 155,243$ 3,009,802$ Investments 5,243,087 137,467 6,145,319 322,631 207,921 672,911 12,729,336 Restricted assets:

Cash and cash equivalents - 752,172 - 234,683 - - 986,855 Investments 249,696 1,000 52,743 - - - 303,439

Receivables:Accrued interest receivable 10,882 275 12,264 639 411 1,330 25,801 Utility receivables, net of allowance for uncollectible accounts 955,837 - 191,417 - - - 1,147,254 Due from other governments - - - 2,114 - 166,547 168,661 Other receivables 4,500 - - - 40,534 - 45,034

Due from other funds 25,209 - 872,562 - - - 897,771 Inventories - - - 70,566 - - 70,566

Total current assets 7,756,413 925,259 8,704,217 705,765 296,834 996,031 19,384,519 Non-current assets:

Restricted assets:Cash and cash equivalents - 99,473 - 31,877 - - 131,350 Investments 1,776 162,905 - 52,204 - - 216,885

Capital Assets:Nondepreciable - 495,278 626,666 541,171 - - 1,663,115 Depreciable, net of accumulated depreciation 367,123 3,470,005 7,242,678 1,100,458 - - 12,180,264

Total non-current assets 368,899 4,227,661 7,869,344 1,725,710 - - 14,191,614 Total assets 8,125,312 5,152,920 16,573,561 2,431,475 296,834 996,031 33,576,133

DEFERRED OUTFLOWS OF RESOURCESDeferred charge on refunding 4,396 52,855 - 16,938 - - 74,189 Deferred amounts related to pensions 412,542 142,860 125,250 255,823 10,128 10,855 957,458

Total deferred outflows of resources 416,938 195,715 125,250 272,761 10,128 10,855 1,031,647

LIABILITIESCurrent liabilities:

Accounts payable 363,795 3,513 136,134 65,396 - 104,129 672,967 Accrued wages payable 51,264 29,614 15,097 47,816 1,176 1,206 146,173 Accrued interest payable 5,113 20,687 - 6,629 - - 32,429 Due to other funds 64,938 - 385,305 - - - 450,243 Compensated absences 9,718 3,802 2,929 6,540 374 173 23,536 Meter deposit liability 24,970 1,000 5,275 - - - 31,245 Revenue bonds payable 46,924 346,396 - 111,005 - - 504,325

Total current liabilities 566,722 405,012 544,740 237,386 1,550 105,508 1,860,918 Non-current liabilities:

Compensated absences 87,459 34,218 26,364 58,855 3,365 1,559 211,820 Meter deposit liability 224,726 - 47,468 - - - 272,194 Net OPEB obligation 121,618 29,438 24,537 70,812 2,372 1,493 250,270 Net pension liability 726,408 240,001 221,222 430,654 17,935 18,135 1,654,355 Revenue bonds payable, net 225,401 1,668,799 - 534,777 - - 2,428,977

Total non-current liabilities 1,385,612 1,972,456 319,591 1,095,098 23,672 21,187 4,817,616 Total liabilities 1,952,334 2,377,468 864,331 1,332,484 25,222 126,695 6,678,534

DEFERRED INFLOW OF RESOURCESDeferred amounts related to pensions 11,432 1,820 2,117 2,884 38 5,163 23,454

NET POSITIONInvested in capital assets, net of related debt 99,194 2,002,943 7,869,344 1,012,785 - - 10,984,266 Restricted for debt service - 993,863 - 312,135 - - 1,305,998 Restricted for scholarships - - - 1,301 - - 1,301 Unrestricted (deficit) 6,479,290 (27,459) 7,963,019 42,647 281,702 875,028 15,614,227

Total net position 6,578,484$ 2,969,347$ 15,832,363$ 1,368,868$ 281,702$ 875,028$ 27,905,792$

City of Edmond, OklahomaCombining Statement of Net Position

Nonmajor Enterprise FundsJune 30, 2017

127


June 30, 2017

City of Edmond, OklahomaCombining Statement of Revenues, Expenses and Changes in Fund Net Position

Nonmajor Enterprise FundsFor the Year Ended June 30, 2017

PWA Sanitation Fund


PWA Drainage Fund



REVENUESCharges for services 9,199,752$ 1,062,338$ 1,793,692$ 1,701,333$ -$ 282,098$ 14,039,213$ Operating grants and contributions - - - - - 743,700 743,700 Miscellaneous - 45,863 - 287,079 91,286 - 424,228

Total operating revenues 9,199,752 1,108,201 1,793,692 1,988,412 91,286 1,025,798 15,207,141

OPERATING EXPENSESPersonal services 1,445,832 639,698 410,139 1,112,258 33,679 33,126 3,674,732 Materials and supplies 343,393 98,116 5,043 484,252 5 84,693 1,015,502 Maintenance, operations and contractual services 5,843,505 448,882 552,613 430,573 17,213 1,574,731 8,867,517 Depreciation 20,865 205,485 66,375 160,061 - - 452,786

Total Operating Expenses 7,653,595 1,392,181 1,034,170 2,187,144 50,897 1,692,550 14,010,537 Operating income (loss) 1,546,157 (283,980) 759,522 (198,732) 40,389 (666,752) 1,196,604

NON-OPERATING REVENUES (EXPENSES)Interest and investment revenue 38,948 2,141 44,568 3,085 1,455 2,530 92,727 Gain on capital asset disposal - - - 5,160 - - 5,160 Interest expense (9,156) (61,486) - (19,702) - - (90,344) Miscellaneous expenses - - (2,379) - - - (2,379)

Total non-operating revenue (expenses) 29,792 (59,345) 42,189 (11,457) 1,455 2,530 5,164

Income (loss) before transfers 1,575,949 (343,325) 801,711 (210,189) 41,844 (664,222) 1,201,768

Transfers in - 485,396 - - - 900,000 1,385,396 Transfers out (353,424) - - - - - (353,424)

Change in net position 1,222,525 142,071 801,711 (210,189) 41,844 235,778 2,233,740

Total net position - beginning 5,355,959 2,827,276 15,030,652 1,579,057 239,858 639,250 25,672,052

Total net position - ending 6,578,484$ 2,969,347$ 15,832,363$ 1,368,868$ 281,702$ 875,028$ 27,905,792$

128


June 30, 2017

PWA Sanitation Fund


PWA Drainage Fund



CASH FLOWS FROM OPERATING ACTIVITIESReceipts from customers 9,193,312$ 1,108,201$ 1,821,788$ 1,988,412$ 79,907$ 1,146,905$ 15,338,525$ Payments to suppliers (6,188,942) (550,811) (422,813) (946,713) (17,218) (1,571,501) (9,697,998) Payments to employees (1,357,593) (609,721) (391,045) (1,053,971) (31,514) (31,547) (3,475,391) Interfund payments (25,209) - (695,479) - - - (720,688) Interfund receipts 48,022 - 385,305 - - - 433,327

Net cash provided by (used in) operating activities 1,669,590 (52,331) 697,756 (12,272) 31,175 (456,143) 1,877,775

CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIESTransfers from other funds - 485,396 - - - 900,000 1,385,396 Transfer to other funds (353,424) - - - - - (353,424)

Net cash provided by (used in) noncapital financing activities (353,424) 485,396 - - - 900,000 1,031,972

CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIESPurchase of capital assets - - (505,758) (58,923) - - (564,681) Principal paid on capital debt (30,555) (399,220) - (127,933) - - (557,708) Interest paid on capital debt (11,839) (86,032) - (27,569) - - (125,440)

Net cash used by (used in) capital and related financing activities (42,394) (485,252) (505,758) (214,425) - - (1,247,829)

CASH FLOWS FROM INVESTING ACTIVITIESPurchases of investments (609,632) - - - (7,220) (356,625) (973,477) Sale of investments - 79,639 430,079 240,650 - - 750,368 Interest and dividends 53,128 2,607 62,078 4,282 1,484 4,893 128,472

Net cash provided by (used in) investing activities (556,504) 82,246 492,157 244,932 (5,736) (351,732) (94,637)

Net Increase in cash and cash equivalents 717,268 30,059 684,155 18,235 25,439 92,125 1,567,281

Balances-beginning of year 549,934 855,931 745,757 323,457 22,529 63,118 2,560,726

Balances-end of year 1,267,202$ 885,990$ 1,429,912$ 341,692$ 47,968$ 155,243$ 4,128,007$

Reconciliation to Combining Statement of Net Position:Cash, including time deposits 1,267,202$ 34,345$ 1,429,912$ 75,132$ 47,968$ 155,243$ 3,009,802$ Restricted cash, including time deposits-current - 752,172 - 234,683 - - 986,855 Restricted cash, including time deposits-noncurrent - 99,473 - 31,877 - - 131,350

Total cash and cash equivalents, end of year 1,267,202 885,990 1,429,912 341,692 47,968 155,243 4,128,007

Reconciliation of Operating Income (Loss) to Net Cash Provided by (used in) Operating Activities:Operating income (loss) 1,546,157$ (283,980)$ 759,522$ (198,732)$ 40,389$ (666,752)$ 1,196,604$ Adjustments to reconcile operating income (loss) to net cash provided by (used in) operating activities:

Depreciation expense 20,865 205,485 66,375 160,061 - - 452,786 Miscellaneous non-operating revenue (expense) - - (2,379) - - - (2,379)

Change in assets and liabilities:Receivables, net (6,440) - 30,475 - (11,379) 121,107 133,763 Inventories - - - 4,548 - - 4,548 Due from other funds (25,209) - (695,479) - - - (720,688) Deferred outflows related to pension (157,677) (67,628) (48,969) (118,336) (4,032) (2,574) (399,216) Accounts and other payables 2,660 (2,075) 136,555 (33,926) 105 88,083 191,402 Due to other funds 48,022 - 385,305 - - - 433,327 Unearned revenue - - - - - - - OPEB obligation 11,756 3,093 2,488 7,460 180 160 25,137 Pension liability 218,701 90,953 69,266 160,580 5,794 1,639 546,933 Deferred inflows related to pension 10,554 1,820 1,664 2,884 38 1,879 18,839 Accrued compensated absences 201 1 (7,067) 3,189 80 315 (3,281)

Net cash provided by (used in) operating activities 1,669,590$ (52,331)$ 697,756$ (12,272)$ 31,175$ (456,143)$ 1,877,775

Non-cash Activities:Change in fair value of investments (18,500)$ (467)$ (20,876)$ (1,086)$ (701)$ (2,266)$ (43,896)$

Total Non-cash Activities (18,500)$ (467)$ (20,876)$ (1,086)$ (701)$ (2,266)$ (43,896)$

City of Edmond, OklahomaCombining Statement of Cash Flows

Nonmajor Enterprise FundsFor the Year Ended June 30, 2017

129


June 30, 2017

INTERNAL SERVICE FUNDS

The Internal Service Funds are used to account for the financing of administrative services provided by one department or function to other departments or functions of the City on a cost reimbursement basis.

EMPLOYEE GROUP INSURANCE FUND - The Employee Group Insurance Fund has been established to account for the direct and indirect costs of administering a self-funded group health insurance plan. Financing is provided by the City, the Edmond Public Works Authority, City employees, and interest earnings on fund investments. Costs associated with the plan include the payment of employee and dependent health and dental claims, third party administrative costs, insurance premium payments for catastrophic claims, fully insured life, accidental death and dismemberment, and long term disability insurance.

LIABILITY/TORT CLAIM FUND - The Liability/Tort Claim Fund has been established to account for direct and indirect costs for the payment of judgments and settled claims relating to torts and worker’s compensation. Financing is provided through billings to user departments.

VEHICLE MAINTENANCE FUND - The Vehicle Maintenance Fund has been established to account for expenditures necessary to maintain City vehicles. Financing is provided through billings to user departments.

FLEET MANAGEMENT FUND - The Fleet Management Fund has been established to accumulate resources for the replacement of vehicles and other equipment on a systematic basis. Financing is provided by fleet lease assessments to the General Fund, Park Sales Tax Fund, Administrative Support Services Fund, Edmond Public Works Authority, Fire Public Safety Limited Tax Fund and the Police Public Safety Limited Tax Fund.

FIELD SERVICES FUND – The Field Services Fund has been established to provide street maintenance, water/wastewater line maintenance and traffic control systems maintenance. Financing is provided by the General Fund, Water and Wastewater Fund based upon applicable cost accounting methods.

ADMINISTRATIVE SUPPORT SERVICES FUND - The Administrative Support Services Fund has been established to account for and allocate administrative overhead costs to user departments of the City. Financing is provided through billings to user departments based upon applicable cost accounting methods.

130


June 30, 2017

City of Edmond, OklahomaCombining Statement of Net Position

Internal Service FundsJune 30, 2017

Group Insurance Fund

Vehicle Maintenance

FundLiability/Tort Claim Fund

Fleet Management

FundField Services

Fund

Administrative Support

Services Fund TotalASSETSCurrent assets:

Cash and cash equivalents 855,308$ 110,658$ 1,052,972$ 1,813,829$ 465,518$ 741,917$ 5,040,202$ Investments 3,707,398 479,594 3,913,999 8,200,271 1,671,059 3,206,360 21,178,681 Receivables:

Accrued interest 7,335 949 7,745 16,226 3,306 6,345 41,906 Due from other governments - - - - 189,440 - 189,440 Other receivables 44,529 142,021 - - - - 186,550

Inventories - 114,664 - - 882,242 65,816 1,062,722 Total current assets 4,614,570 847,886 4,974,716 10,030,326 3,211,565 4,020,438 27,699,501

Non-current assets:Capital Assets:

Nondepreciable - - - - - 809,418 809,418 Depreciable, net of accumulated depreciation - - - 14,264,513 - 2,810,650 17,075,163

Total non-current assets - - - 14,264,513 - 3,620,068 17,884,581 Total assets 4,614,570 847,886 4,974,716 24,294,839 3,211,565 7,640,506 45,584,082

DEFERRED OUTFLOWS OF RESOURCESDeferred amounts related to pensions - 270,919 74,812 19,993 1,359,629 3,746,704 5,472,057


Accounts payable 206,186 172,833 157,305 19,593 127,626 394,886 1,078,429 Salaries payable - 34,568 10,049 2,546 180,156 488,052 715,371 Compensated absences - 5,450 1,736 252 26,612 68,178 102,228 Claims and judgments 825,151 - 972,000 - - - 1,797,151

Total current liabilities 1,031,337 212,851 1,141,090 22,391 334,394 951,116 3,693,179 Non-current liabilities:

Compensated absences - 48,936 15,628 2,243 239,509 613,720 920,036 Net OPEB obligation - 22,838 5,171 1,190 134,228 300,469 463,896 Net pension liability - 467,652 132,345 35,367 2,404,776 6,620,088 9,660,228 Claims and judgments 275,050 - 1,845,000 - - - 2,120,050

Total non-current liabilities 275,050 539,426 1,998,144 38,800 2,778,513 7,534,277 13,164,210 Total liabilities 1,306,387 752,277 3,139,234 61,191 3,112,907 8,485,393 16,857,389

DEFERRED INFLOW OF RESOURCESDeferred amounts related to pensions - 5,125 5,056 144 12,766 39,494 62,585

NET POSITIONInvested in capital assets, net of related debt - - - 14,316,154 - 3,620,068 17,936,222 Unrestricted (deficit) 3,308,183 361,403 1,905,238 9,937,343 1,445,521 (757,745) 16,199,943

Total Net Position 3,308,183$ 361,403$ 1,905,238$ 24,253,497$ 1,445,521$ 2,862,323$ 34,136,165$

131


June 30, 2017

City of Edmond, OklahomaCombining Statement of Revenues, Expenses and Changes in Fund Net Position

Internal Service FundsFor the Year Ended June 30, 2017


Vehicle Maintenance


Fleet Management

FundField Services

Fund


Services Fund TotalOPERATING REVENUES

Charges for services 9,573,194$ 2,840,063$ 2,229,803$ 3,823,215$ 9,941,909$ 18,522,030$ 46,930,214$ Miscellaneous - - 190,943 - 5,405 - 196,348

Total operating revenues 9,573,194 2,840,063 2,420,746 3,823,215 9,947,314 18,522,030 47,126,562

OPERATING EXPENSESPersonal services - 929,691 256,308 68,139 4,873,304 13,328,068 19,455,510 Materials and supplies 814 1,504,915 8,129 7,241 1,078,021 605,380 3,204,500 Other services and charges 1,552,492 570,164 203,846 134,818 4,503,471 5,310,124 12,274,915 Insurance premium expense 671,947 - 723,202 - - - 1,395,149 Claims expense 10,106,233 - 957,390 - - - 11,063,623 Depreciation - - - 1,943,466 - 472,416 2,415,882

Total operating expenses 12,331,486 3,004,770 2,148,875 2,153,664 10,454,796 19,715,988 49,809,579 Operating income (loss) (2,758,292) (164,707) 271,871 1,669,551 (507,482) (1,193,958) (2,683,017)

NON-OPERATING REVENUES (EXPENSES)Interest and investment revenue 29,751 3,601 24,536 58,695 10,712 27,236 154,531 Gain/(loss) on sale of capital assets - - - (67,497) - - (67,497) Miscellaneous revenue 40,219 1,843 - 24,350 - 123,190 189,602

Total non-operating revenue (expenses) 69,970 5,444 24,536 15,548 10,712 150,426 276,636

Change in net position (2,688,322) (159,263) 296,407 1,685,099 (496,770) (1,043,532) (2,406,381)

Total net position - beginning 5,996,505 520,666 1,608,831 22,568,398 1,942,291 3,905,855 36,542,546

Total net position - ending 3,308,183$ 361,403$ 1,905,238$ 24,253,497$ 1,445,521$ 2,862,323$ 34,136,165$

132


June 30, 2017


Combining Statement of Cash FlowsInternal Service Funds



Vehicle Maintenance


Fleet Management

FundField Services

Fund


Services Fund TotalCASH FLOWS FROM OPERATING ACTIVITIES

Receipts from customers 9,590,139$ 2,905,205$ 2,420,746$ 4,006,416$ 9,969,101$ 18,657,220$ 47,548,827$ Payments to suppliers (2,306,728) (1,987,053) (820,991) (168,164) (5,762,736) (5,662,322) (16,707,994) Payments to employees - (864,803) (755,390) (62,974) (4,538,651) (12,522,986) (18,744,804) Claims and judgments paid (9,314,218) - (236,366) - - - (9,550,584) Interfund payments - - - - - 18,112 18,112

Net cash provided by (used in) operating activities (2,030,807) 53,349 607,999 3,775,278 (332,286) 490,024 2,563,557

CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIESPurchase of capital assets - - - (2,467,603) - (363,802) (2,831,405) Proceeds from sale of capital assets - - - 64,291 - - 64,291

Net cash provided by (used in) capital and related financing activities - - - (2,403,312) - (363,802) (2,767,114)

CASH FLOWS FROM INVESTING ACTIVITIESPurchases of investments - (1,413) (162,310) (504,869) - - (668,592) Sale of investments 2,181,421 - - - 533,874 194,577 2,909,872 Interest and dividends 42,800 2,909 35,013 80,514 15,993 36,256 213,485

Net cash provided by (used in) investing activities 2,224,221 1,496 (127,297) (424,355) 549,867 230,833 2,454,765

Net Increase in cash and cash equivalents 193,414 54,845 480,702 947,611 217,581 357,055 2,251,208

Balances-beginning of year 661,894 55,813 572,270 866,218 247,937 384,862 2,788,994

Balances-end of year 855,308$ 110,658$ 1,052,972$ 1,813,829$ 465,518$ 741,917$ 5,040,202$

Reconciliation to Combining Statement of Net Position:Cash, including time deposits 855,308$ 110,658$ 1,052,972$ 1,813,829$ 465,518$ 741,917$ 5,040,202$

Total cash and cash equivalents, end of year 855,308$ 110,658$ 1,052,972$ 1,813,829$ 465,518$ 741,917$ 5,040,202$

Reconciliation of Operating Income (Loss) to Net Cash Provided by (used in) Operating Activities:Operating income (loss) (2,758,292)$ (164,707)$ 271,871$ 1,669,551$ (507,482)$ (1,193,958)$ (2,683,017)$ Adjustments to reconcile operating income (loss) to net cash provided by (used in) operating activities:

Depreciation expense - - - 1,943,466 - 472,416 2,415,882 Miscellaneous non-operating revenue 40,219 1,843 - 24,350 - 123,190 189,602

Change in assets and liabilities:Receivables, net - - - - - - - Other receivable (23,274) 63,299 158,851 21,787 6,000 226,663 Inventories - (43,967) - - (116,487) (3,804) (164,258) Due from other governments - - - - - 6,000 6,000 Due from other funds - - - - - 18,112 18,112 Deferred outflows related to pension - (119,037) (29,580) (8,039) (536,895) (1,472,893) (2,166,444) Accounts and other payables (81,475) 138,394 117,477 (25,915) (37,048) 316,476 427,909 Claims liability 792,015 - 202,000 - - - 994,015 Net OPEB obligation - 7,355 1,446 366 42,031 94,183 145,381 Net Pension liability - 165,094 42,241 11,656 765,841 2,094,995 3,079,827 Deferred inflows related to pension - 1,085 (574) 144 11,626 39,494 51,775 Accrued compensated absences - 3,990 3,118 848 24,341 (10,187) 22,110

Net cash provided by (used in) operating activities (2,030,807)$ 53,349$ 607,999$ 3,775,278$ (332,286)$ 490,024$ 2,563,557$

Non-cash Activities:Change in fair value of investments (12,487)$ (1,615)$ (13,182)$ (27,619)$ (5,628)$ (10,799)$ (71,330)$

Total Non-cash Activities (12,487)$ (1,615)$ (13,182)$ (27,619)$ (5,628)$ (10,799)$ (71,330)$

133


June 30, 2017

AGENCY FUNDS

Agency Funds are used to account for assets held by the City as an agent for individuals, private organizations, and other governmental funds. Agency Funds are custodial in nature (assets equal liabilities) and do not involve measurement of results of operations.

SIDEWALK AND DRIVEWAY ESCROW FUND accounts for contractor performance deposits held by the City on various City construction projects. The deposits are refunded after the projects have been satisfactorily completed.

CLEET ASSESSMENT FUND accounts for the receipt of a State mandated penalty assessment on all City fines and forfeitures to be collected by the City and remitted quarterly to the State for its law enforcement training fund.

134


June 30, 2017

City of Edmond, OklahomaCombining Statement of Fiduciary Assets and Liabilities

Agency FundsJune 30, 2017

Sidewalk and Driveway

Escrow Fund

C.L.E.E.T. PENALTY

ASSESSMENT FUND TOTALS

ASSETSCash and cash equivalents 568,922$ 17,532$ 586,454$ Other receivables 26,656 - 26,656

Total assets 595,578$ 17,532$ 613,110$

LIABILITIES Accounts payable -$ 17,156$ 17,156$ Refundable deposits 595,578 376 595,954

Total liabilities 595,578$ 17,532$ 613,110$

BALANCE JUNE 30, 2016 ADDITIONS DEDUCTIONS

BALANCE JUNE 30, 2017

SIDEWALK AND DRIVEWAY ESCROWAssets:

Cash and cash equivalents 613,745$ $ 389,985 $ 434,808 568,922$ Other receivables - 26,656 - 26,656

Total assets 613,745$ 416,641$ 434,808$ 595,578$

LIABILITIES Refundable deposits 613,745$ $ 371,818 $ 389,985 595,578$

Total liabilities 613,745$ 371,818$ 389,985$ 595,578$

C.L.E.E.T. PENALTY ASSESSMENT FUNDAssets:

Cash and cash equivalents 40,117$ $ 598,621 $ 621,206 17,532$

Total assets 40,117$ 598,621$ 621,206$ 17,532$

LIABILITIES Accounts payable 18,534$ $ 321,283 $ 322,661 17,156$ Due to other governments 21,583 277,338 298,545 376

Total liabilities 40,117$ 598,621$ 621,206$ 17,532$

TOTALS-ALL AGENCY FUNDSAssets:

Cash and cash equivalents 653,862$ 988,606$ 1,056,014$ 586,454$ Other receivables - 26,656 - 26,656

Total assets 653,862$ 1,015,262$ 1,056,014$ 613,110$

LIABILITIES Accounts payable 18,534$ 321,283$ 322,661$ 17,156$ Due to other governments 21,583 277,338 298,545 376 Refundable deposits 613,745 371,818 389,985 595,578

Total liabilities 653,862$ 970,439$ 1,011,191$ 613,110$

City of Edmond, OklahomaCombining Statement of Changes in Assets and Liabilities

Agency FundsFor the fiscal year ended June 30, 2017

135


June 30, 2017

REVENUE BOND/NOTE COVENANT SCHEDULES The revenue bond and note agreements and indentures contain certain financial related covenants dealing with minimum requirements for net pledged revenue and minimum reserve account balance requirements. The following schedules are presented to indicate the level of compliance by the City or its public trusts with these covenants. Schedule of Revenue Bond/Note Debt Service Coverage This schedule compares the net revenues generated from revenues sources pledged for the payment of principal and interest of revenue bond and notes to the maximum annual debt service requirements on the debt. Schedule of Reserve Account Balances This schedule compares the amount of assets held in trust as reserve accounts related to revenue bonds and notes to the required balances to be maintained in these accounts as required by the debt covenants.

136


June 30, 2017

CITY OF EDMOND, OKLAHOMASCHEDULE OF REVENUE BOND/NOTE DEBT SERVICE COVERAGE


Sales Tax and OWRB/Bank of America Utility Revenue Utility Revenue

Notes Payable Bonds Series Bonds SeriesSeries 2005C and 2013 2010, 2012, 2013 2014, 2015

General Sales Revenue Note 2014, and 2014B and 2016

GROSS REVENUES OF THE SYSTEM: Charges for services 148,256,574$ 148,256,574$ 148,256,574$ Investment income 875,268 875,268 875,268 Miscellaneous income 156,627 156,627 156,627

Total Gross Revenues of the System 149,288,469 149,288,469 149,288,469

OPERATION AND MAINTENANCE EXPENSES: Personal services 9,499,282 9,499,282 9,499,282 Materials and supplies 2,301,120 2,301,120 2,301,120 Maintenance, operations and contractual services 88,286,718 88,286,718 88,286,718 Debt service on prior lien utility system revenue bonds - 8,696,602 -

Total Operation and Maintenance Expenses 100,087,120 108,783,722 100,087,120

Total Gross Revenues of the System in Excess 49,201,349 40,504,747 49,201,349 of Total Operation and Maintenance Expenses

Add: Pledged sales tax revenue 33,565,653 12,587,120 12,587,120

Net Revenues of the System plus pledged sales tax revenue 82,767,002$ 53,091,867$ 61,788,469$

Maximum Debt Service Requirements on Liabilities 6,954,274$ 7,455,266$ 8,079,527$

Computed Coverage 1190% 712% 765% Coverage Requirement 125% 125% 125%

NOTE: Revenues and expenses include only amounts related to the electric, water, wastewater, and sanitation funds. Operating expenses exclude depreciation, amortization and other non-cash items, in accordance with the terms of the applicable bond indentures.

Maximum Debt Service Requirements on Liabilities is based on the following: Sales Tax and Utility System Revenue Bonds total debt service for the 2010, 2012, 2013 and 2014, 2014B series bonds in fiscal year 2021. Utility System Revenue Bonds total debt service for the 2014, 2015, and 2016 series bonds and OWRB notes payable in fiscal year 2024.

137


June 30, 2017


SCHEDULE OF RESERVE ACCOUNT BALANCES

JUNE 30, 2017

RESERVE EXCESS BALANCE

REQUIRED BALANCE OVER REQUIRED

RESERVES JUNE 30, 2017 RESERVES

Required Balance: Series 2010 Sales Tax and Utility Revenue Bonds 1,390,000$ 1,445,303$ 55,303$ Series 2012 Sales Tax and Utility Revenue Bonds 1,325,500 1,379,283 53,783 Series 2013 Sales Tax and Utility Revenue Bonds 1,434,939 1,438,164 3,225 Series 2014 Sales Tax and Utility Revenue Bonds 2,496,505 2,557,461 60,956 Series 2014B Sales Tax and Utility Revenue Bonds 2,245,000 2,327,290 82,290 Series 2015 Utility Revenue Bonds 2,269,935 2,303,585 33,650 Series 2016 Sales Tax and Utility Revenue Bonds 2,360,100 2,362,113 2,013

138


June 30, 2017

DISCRETELY PRESENTED COMPONENT UNIT

Additional information for the discretely presented component unit referred to in the notes to the financial statements is provided.

HISTORIC PRESERVATION TRUST Created November 15, 1982 to preserve the qualities relating to the history of the City in order to promote the economic and general welfare of the people of the City of Edmond and to ensure the harmonious, orderly and efficient growth and development of the municipality. The EHPT governing body is appointed by the current City Council. The City is able to impose its will on the EHPT because, pursuant to state law, all issuance of EHPT debt requires a two-thirds approval of the City Council. The EHPT component unit does not issue separate financial statements.

139


June 30, 2017

HISTORIC PRESERVATION

TRUST

ASSETS

Cash and cash equivalents 89,184$

Total assets 89,184$

LIABILITIES AND FUND BALANCES

Fund Balances:

Unassigned 89,184$

Total liabilities and fund balances 89,184$

Reconciliation to Statement of Net Position:

Fund balance 89,184$

Amounts reported for the discretely presented component unit in the statement of net position are different because:

Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the funds. 166,726

Net position of component unit 255,910$


BALANCE SHEET


June 30, 2017

140


June 30, 2017

HISTORIC PRESERVATION

TRUST

Revenues:

Investment income 122$

Miscellaneous 1,128

Total Revenues 1,250

Expenditures:

Current:

Culture, parks and recreation 24,076

Total Expenditures 24,076

Revenues over (under) expenditures (22,826)

Other financing sources:

Payment from the City of Edmond 20,000

Net change in fund balance (2,826)

Fund balances - beginning 92,010

Fund balances - ending 89,184$

Reconciliation to Statement of Activities:

Net Change in fund balance (2,826)$

Amounts reported for the discretely presented component unit in the Statement of Activities are difference because:

Governmental funds report capital outlays as expenditures while governmental activities report depreciation expense to allocate those expenditures over the life of the assets:

Depreciation expense (28,504)

Change in net position - component unit (31,330)$


STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE


FOR THE FISCAL YEAR ENDED June 30, 2017

141


June 30, 2017


142

STATISTICAL SECTION

STATISTICAL SECTION

This part of the City of Edmond’s comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the city’s overall financial health Such statistical information includes: FINANCIAL TRENDS – These schedules contain trend information to help the reader understand how the city’s financial performance and well-being have changed over time REVENUE CAPACITY – These schedules contain information to help the reader assess the city’s most significant local revenue sources, gas and sales tax revenues. DEBT CAPACITY –These schedules present information to help the reader assess the affordability of the city’s current levels of outstanding debt and the city’s ability to issue additional debt in the future. DEMOGRAPHIC AND ECONOMIC INFORMATION – These schedules offer demographic and economic indicators to help the reader understand the environment within which the city’s financial activities take place OPERATING INFORMATION – These schedules contain service and infrastructure data to help the reader understand how the information in the city’s financial report relates to the services the city provides and the activities it performs.

143

CITY OF EDMOND, OKLAHOMA NET POSITION BY COMPONENT

Last Ten Fiscal Years TABLE 1

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Governmental activities

Invested in capital assets, net of related debt 135,777,034$ 170,168,033$ 186,474,825$ 152,755,649$ 165,301,769$ 179,081,790$ 200,795,158$ 250,995,878$ 255,086,502$ 297,762,184$

Restricted 63,676,420 66,653,990 66,138,688 66,787,140 65,438,617 77,480,959 74,547,850 72,918,625 62,143,563 52,414,977 Unrestricted 22,118,829 4,246,686 (2,196,768) 16,285,449 17,858,558 17,186,870 19,574,722 (52,758,763) (30,213,326) (45,256,242)

Total governmental activities net assets 221,572,283$ 241,068,709$ 250,416,745$ 235,828,238$ 248,598,944$ 273,749,619$ 294,917,730$ 271,155,740$ 287,016,739$ 304,920,919$

Business-type activities


Restricted 10,563,415 10,899,446 11,431,161 11,102,953 12,737,861 13,161,823 12,665,793 10,164,237 11,122,065 12,555,515 Unrestricted 55,106,883 61,950,616 63,999,452 61,237,819 62,638,338 63,641,836 65,352,440 85,095,133 115,979,906 137,187,395

Total business-type activities net assets 184,814,329$ 201,953,367$ 209,344,724$ 202,648,441$ 214,648,289$ 229,460,550$ 244,282,733$ 273,388,125$ 313,588,448$ 350,350,476$

Primary government


Restricted 74,239,835 77,553,436 77,569,849 77,890,093 78,176,478 90,642,782 87,213,643 83,082,862 73,265,628 64,970,492 Unrestricted 77,225,712 66,197,302 61,802,684 77,523,268 80,496,896 80,828,706 84,927,162 32,336,370 85,766,580 91,931,153

Total primary government net assets 406,386,612$ 443,022,076$ 459,761,469$ 438,476,679$ 463,247,233$ 503,210,169$ 539,200,463$ 544,543,865$ 600,605,187$ 655,271,395$

144

CITY OF EDMOND, OKLAHOMA CHANGES IN NET POSITION

Last Ten Fiscal YearsTABLE 2

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Expenses

Government activities: General government 3,478,447$ 6,481,160$ 10,973,617$ 5,031,798$ 7,354,958$ 7,931,878$ 6,356,170$ 6,284,407$ 9,167,431$ 8,005,753$ Public safety 36,253,944 36,973,162 37,861,256 39,468,587 38,482,564 41,599,381 43,468,774 43,371,086 47,309,195 52,798,820

Streets and highways 7,758,419 9,037,694 10,628,715 10,186,548 10,413,380 10,787,542 12,768,311 13,111,395 15,151,636 15,148,413 Cultural, parks and recreation 4,875,902 5,108,657 5,460,930 5,419,709 5,163,602 4,742,925 5,986,917 8,532,349 7,067,735 8,080,826 Health and welfare 1,429,278 1,788,220 2,568,303 2,879,900 3,154,842 3,173,294 1,629,424 1,510,407 1,639,425 1,681,699 Economic development - - - - 107,884 72,066 603,679 644,296 576,728 - Interest on long-term debt 3,575,609 3,446,624 3,303,605 3,060,764 2,825,422 2,478,720 2,316,938 1,527,392 1,828,757 1,669,226 Total governmental activities expenses 57,371,599 62,835,517 70,796,426 66,047,306 67,502,652 70,785,806 73,130,213 74,981,332 82,740,907 87,384,737 Business-type activities: Electric operations 55,694,109 58,763,582 60,634,285 65,755,607 68,889,466 72,308,154 74,045,803 75,458,152 75,312,602 80,292,128 Water operations 14,909,423 15,248,010 15,676,576 16,360,858 16,769,702 16,804,561 19,668,782 19,838,405 17,495,184 18,724,132 Wastewater operations 5,554,642 5,744,638 5,614,980 5,351,923 5,719,033 6,495,234 6,766,403 7,138,969 7,224,538 9,664,933 Sanitation operations 6,100,704 5,999,807 6,279,124 6,673,527 6,953,312 6,797,466 7,101,930 6,876,040 7,052,119 7,157,872 Lake operations 1,194,252 1,251,923 1,174,818 1,255,232 1,271,935 1,289,412 1,332,453 1,351,272 1,364,701 1,453,667 Drainage operations 814,071 822,836 934,104 953,486 1,020,667 887,642 827,838 916,310 903,578 1,034,170 Golf course operations 1,786,557 1,931,136 1,762,760 1,914,021 1,907,157 1,928,258 1,970,350 2,079,169 2,318,656 2,201,686 Cooperative purchasing services 63,194 58,693 41,299 64,215 64,757 62,844 62,210 63,641 50,083 50,897 Transportation operations - - - - - - 1,568,426 1,594,042 1,296,604 1,692,550 Economic development (payment to EEDA) 417,459 430,000 442,900 412,000 440,000 470,000 - - - - Total business-type activities expenses 86,534,411 90,250,625 92,560,846 98,740,869 103,036,029 107,043,571 113,344,195 115,316,000 113,018,065 122,272,035 Total primary government expenses 143,906,010$ 153,086,142$ 163,357,272$ 164,788,175$ 170,538,681$ 177,829,377$ 186,474,408$ 190,297,332$ 195,758,972$ 209,656,772$

Program Revenues

Government activities: Charges for services: General government 7,308,113$ 7,108,368$ 7,370,016$ 7,604,193$ 7,353,230$ 7,421,872$ 7,934,422$ 7,945,577$ 7,259,773$ 9,352,670$ Public Safety 1,184,312 821,340 831,720 946,769 1,220,778 1,246,610 1,267,798 1,213,991 1,188,473 1,115,725

Streets and highways 7,650 104,770 228,097 7,200 84,870 11,670 10,200 101,877 23,422 13,140

Cultural, parks and recreation 538,322 538,937 514,150 719,757 528,606 536,743 518,039 410,001 161,863 127,378

Health and welfare - - 689,333 1,167,687 1,140,753 1,135,962 931,947 916,854 869,997 859,838

Operating grants and contributions 4,902,301 4,036,616 4,878,847 5,547,074 5,475,330 5,682,716 5,498,584 5,867,612 6,040,401 6,552,097

Capital grants and contributions 5,968,765 17,642,392 16,112,303 5,176,962 5,232,894 10,668,747 7,002,940 10,227,919 10,189,610 10,309,777

Total governmental activities program revenues 19,909,463 30,252,423 30,624,466 21,169,642 21,036,461 26,704,320 23,163,930 26,683,831 25,733,539 28,330,625

(Continued)

145

CITY OF EDMOND, OKLAHOMA TABLE 2 (Continued)

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Business-type activities:

Charges for services:

Electric operations 57,936,121$ 64,787,581$ 63,074,399$ 65,175,715$ 71,935,412$ 70,744,562$ 76,674,353$ 87,756,233$ 91,957,403$ 96,627,510$

Water operations 15,876,990 16,132,835 15,309,866 20,660,467 22,701,466 22,891,181 22,931,346 22,666,769 25,066,076 28,766,025

Wastewater operations 6,887,906 6,562,672 6,231,244 7,150,976 8,554,554 9,923,751 11,423,965 12,531,903 13,377,584 15,752,873

Sanitation operations 6,221,070 7,005,326 7,246,382 7,409,205 7,577,025 7,813,513 8,065,999 8,955,701 9,128,560 9,199,752

Lake operations 640,316 770,288 764,675 868,456 880,719 846,471 963,845 942,661 1,078,431 1,108,201

Drainage operations 1,571,298 1,579,935 1,630,168 1,625,597 1,758,988 1,684,899 1,703,753 1,769,513 1,876,533 1,791,313

Golf course operations 1,731,594 1,809,868 1,711,166 1,879,253 1,997,414 2,012,055 1,997,086 2,024,187 2,018,439 1,988,412

Cooperative purchasing service 70,085 63,693 53,641 49,240 80,190 82,326 74,389 89,516 63,524 91,286 Transportation operations ⁱ - - - - - - 290,470 226,136 262,869 282,098

Operating grants and contributions 107,870 82,117 2,717 225,488 72,975 921,297 328,568 258,503 308,943 1,167,903

Capital grants and contributions 5,360,805 8,309,381 3,537,407 3,649,620 1,665,577 6,989,454 4,189,645 8,610,407 6,492,648 4,640,646

Total business-type activities program revenues 96,404,055 107,103,696 99,561,665 108,694,017 117,224,320 123,909,509 128,643,419 145,831,529 151,631,010 161,416,019 Total primary government program revenues 116,313,518$ 137,356,119$ 130,186,131$ 129,863,659$ 138,260,781$ 150,613,829$ 151,807,349$ 172,515,360$ 177,364,549$ 189,746,644$

Net (Expense)/RevenueGovernment activities (37,462,136)$ (32,583,094)$ (40,171,960)$ (44,877,664)$ (46,466,191)$ (44,081,486)$ (49,966,283)$ (48,297,501)$ (57,007,368)$ (59,054,112)$

Business-type activities 9,869,644 16,853,071 7,000,819 9,953,148 14,188,291 16,865,938 15,299,224 30,515,529 38,612,945 39,143,984 Total primary government net expense (27,592,492)$ (15,730,023)$ (33,171,141)$ (34,924,516)$ (32,277,900)$ (27,215,548)$ (34,667,059)$ (17,781,972)$ (18,394,423)$ (19,910,128)$

General Revenues and Other Changes in Net Assets

Government activities:

Taxes:

Sales and use taxes - General government 27,558,790$ 29,572,916$ 27,484,883$ 28,917,747$ 31,299,351$ 34,403,578$ 36,065,782$ 37,777,579$ 38,186,535$ 38,693,158$

Sales and use taxes - Public safety 4,742,710 5,014,947 4,748,676 4,914,564 5,366,325 5,870,777 6,094,618 6,318,872 6,341,907 8,631,688

Sales and use taxes - Park and recreation 1,580,904 1,671,649 1,582,892 1,638,188 1,788,775 1,956,926 2,031,539 2,106,291 2,113,969 2,107,465

Sales and use taxes - Capital improvements 9,485,420 10,029,894 9,497,352 9,829,129 12,798,391 19,569,255 20,315,394 21,062,907 21,139,690 18,765,363

Ad valorem property taxes 91,149 - - - - - - - - -

Franchise and public service taxes 1,866,394 1,961,519 1,886,700 2,304,910 2,106,551 2,157,871 2,269,717 2,327,317 2,281,490 2,142,557

Hotel/motel taxes 417,905 364,232 345,208 344,968 391,664 421,979 443,663 453,376 464,362 464,292

Intergovernmental revenue not restricted to spec 761,720 694,962 675,890 981,492 894,306 1,101,004 1,078,777 1,158,392 1,060,789 1,118,273

Investment income 4,229,091 2,515,207 1,294,216 1,299,271 822,610 608,693 825,927 815,222 933,373 626,649

Miscellaneous 284,237 216,763 252,382 242,196 293,668 346,998 450,357 727,652 1,015,926 1,097,844

Gain (loss) on sale of capital assets - (1,696,494) - - - - - - - -

Transfers-Internal activity 1,604,942 1,733,927 1,751,799 1,066,444 3,475,226 2,795,080 1,558,620 501,074 (669,672) 3,311,003

Total governmental activities 52,623,262 52,079,522 49,519,998 51,538,909 59,236,867 69,232,161 71,134,394 73,248,682 72,868,369 76,958,292

Business-type activities:

Investment earnings 2,829,720 1,925,301 1,113,106 991,181 780,709 481,283 797,046 659,037 917,706 929,047

Miscellaneous 180,998 158,658 1,029,229 176,357 506,071 260,120 284,533 171,402 - -

Special item - gain on asset impairment 294,193 (64,102) - - - - - - - -

Transfers - Internal activity (1,604,942) (1,733,927) (1,751,799) (1,066,444) (3,475,226) (2,795,080) (1,558,620) (501,074) 669,672 (3,311,003)

Total business-type activities 1,699,969 285,930 390,536 101,094 (2,188,446) (2,053,677) (477,041) 329,365 1,587,378 (2,381,956) Total primary government 54,323,231$ 52,365,452$ 49,910,534$ 51,640,003$ 57,048,421$ 67,178,484$ 70,657,353$ 73,578,047$ 74,455,747$ 74,576,336$

Change in Net Assets

Government activities 15,161,126$ 19,496,428$ 9,348,038$ 6,661,245$ 12,770,676$ 25,150,675$ 21,168,111$ 24,951,181$ 15,861,001$ 17,904,180$

Business-type activities 11,569,613 17,139,001 7,391,355 10,054,242 11,999,845 14,812,261 14,822,183 30,844,894 40,200,323 36,762,028 Total primary government 26,730,739$ 36,635,429$ 16,739,393$ 16,715,487$ 24,770,521$ 39,962,936$ 35,990,294$ 55,796,075$ 56,061,324$ 54,666,208$

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

146

CITY OF EDMOND, OKLAHOMAFUND BALANCES, GOVERNMENTAL FUNDS


2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

General Fund Reserved 3,771,989$ 3,573,228$ 1,770,558$ -$ -$ -$ -$ -$ -$ -$ Unreserved 2,841,745 2,005,534 4,985,485 - - - - - - - Restricted - - - 1,637,707 2,107,217 2,644,344 3,197,753 2,962,254 2,889,481 2,660,047 Committed - - - - - - 578,249 - - - Assigend - - - 2,702,404 1,643,231 1,822,138 1,434,645 1,947,137 1,120,870 1,462,779 Unassigned - - - 5,150,248 5,904,708 6,770,667 7,375,504 6,056,058 3,142,639 5,419,733 Total general fund 6,613,734$ 5,578,762$ 6,756,043$ 9,490,359$ 9,655,156$ 11,237,149$ 12,586,151$ 10,965,449$ 7,152,990$ 9,542,559$

All Other Governmental Funds Reserved 7,229,922$ 7,329,922$ 7,314,772$ -$ -$ -$ -$ -$ -$ -$ Restricted - - - 65,078,915 63,331,400 74,827,114 71,339,026 61,708,614 59,241,768 53,097,413 Committed - - - 2,879 3,613 7,352 11,733 11,530 8,902 3,444 Assigned - - - 1,617,875 1,905,771 3,593,792 4,706,939 5,077,958 5,867,853 6,909,158 Unassigned - - - - - - - - (1,999,113) (50,046) Unreserved, reported in: Designated 24,031,157 22,314,064 32,566,108 - - - - - - - Undesignated 35,556,974 35,121,329 - - - - - - - - Special revenue funds 5,184,515 4,202,565 9,733,245 - - - - - - - Debt service funds 5,453 - - - - - - - - - Capital project funds 2,606,709 1,619,906 19,253,710 - - - - - - -

Total all other governmental funds 74,614,730$ 70,587,786$ 68,867,835$ 66,699,669$ 65,240,784$ 78,428,258$ 76,057,698$ 66,798,102$ 63,119,410$ 59,959,969$

GRAND TOTAL 88,336,986$ 81,228,464$ 76,166,548$ 75,623,878$ 74,895,940$ 89,665,407$ 88,643,849$ 77,763,551$ 70,272,400$ 69,502,528$

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

147

CITY OF EDMOND, OKLAHOMACHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS


2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Revenues

Sales and use taxes 43,367,824$ 46,289,406$ 43,313,803$ 45,299,628$ 51,252,842$ 61,800,536$ 64,507,333$ 67,265,649$ 67,782,101$ 68,197,674$ Franchise and public service taxes 1,865,472 1,995,831 1,885,284 2,341,305 2,106,551 2,199,488 2,311,150 2,371,750 2,281,490 2,142,557 Ad valorem taxes 93,730 - - - - - - - - - Hotel/motel taxes 417,905 364,232 345,208 344,968 391,664 421,979 443,663 453,376 464,362 464,292 Intergovernmental 8,251,646 7,292,287 9,707,740 6,776,753 10,805,328 14,086,717 10,904,286 9,686,171 7,450,843 7,805,686 Charges for services 5,121,590 4,980,864 6,209,535 6,750,908 6,633,164 6,816,347 6,801,451 6,871,742 6,311,280 7,663,884 Fines and forfeitures 2,424,600 2,375,687 2,097,681 2,436,202 2,068,170 2,053,931 2,099,735 1,809,016 1,641,283 2,267,734 Licenses and permits 1,418,060 1,063,724 1,083,211 1,082,107 1,525,110 1,389,282 1,608,680 1,769,355 1,412,552 1,452,924 Investment income 4,304,185 2,402,614 1,641,489 1,271,330 823,014 675,831 799,873 778,705 845,306 583,258 Interest earning on interfund loan - - - - - - - 30,640 85,876 61,930 Miscellaneous 401,775 581,882 462,860 1,416,558 593,336 747,326 708,441 1,021,236 1,488,927 1,107,010

Total Revenues 67,666,787$ 67,346,527$ 66,746,811$ 67,719,759$ 76,199,179$ 90,191,437$ 90,184,612$ 92,057,640$ 89,764,020$ 91,746,949$

Expenditures:

General government 5,927,876$ 5,380,418$ 4,839,694$ 5,382,504$ 5,239,393$ 6,339,565$ 6,170,708$ 6,812,288$ 5,937,535$ 6,111,202$ Public safety 35,466,386 35,183,104 36,047,474 37,953,732 37,732,090 40,600,947 42,576,993 45,697,743 49,182,140 49,487,104 Streets and highways 4,421,445 3,333,924 3,098,018 3,920,453 2,897,088 2,909,278 1,374,487 1,255,580 6,354,224 5,377,604 Cultural, Parks and Recreation 3,837,910 3,777,614 3,684,873 3,904,840 4,494,049 4,858,017 5,152,798 5,235,819 4,696,132 5,047,946 Health and welfare 1,369,320 1,549,305 2,313,124 2,624,963 4,164,797 4,350,720 4,436,186 4,843,989 1,384,677 1,426,948 Economic development - - - - 296,685 - - - 576,728 - Capital Outlay 18,500,852 18,312,319 12,507,394 10,068,623 19,112,591 28,076,563 26,031,528 33,392,516 19,924,453 19,842,711 Debt service: Principal 3,411,203 3,445,000 3,595,000 3,370,000 4,095,000 4,495,000 5,988,514 5,328,286 6,364,851 6,529,309 Interest and fiscal charges 3,632,019 3,498,724 3,355,705 2,797,592 2,852,354 2,458,647 2,509,629 2,363,880 2,164,759 2,005,000 Total Expenditures 76,567,011$ 74,480,408$ 69,441,282$ 70,022,707$ 80,884,047$ 94,088,737$ 94,240,843$ 104,930,101$ 96,585,499$ 95,827,824$

Excess of revenues over(under) expenditures (8,900,224)$ (7,133,881)$ (2,694,471)$ (2,302,948)$ (4,684,868)$ (3,897,300)$ (4,056,231)$ (12,872,461)$ (6,821,479)$ (4,080,875)$

Other financing sources(uses)

Transfers in 54,816,508$ 60,118,792$ 54,742,916$ 57,700,798$ 62,738,138$ 69,839,503$ 68,979,432$ 75,715,179$ 52,673,556$ 54,126,365$ Transfers out (53,024,807) (58,046,824) (52,591,117) (55,064,383) (59,347,356) (66,985,905) (67,435,112) (75,214,105) (53,343,228) (50,815,362) Capital contributions - - - - - - - - - - Proceeds from sale of judgment - - - - - - - - - - Transfer to escrow agent - - - (13,667,116) - (12,477,058) (12,376,172) (21,731,628) - - Bond issuance costs - - - - - - - Bond discount - - - - - - - - - - Bond premium - - - - - 1,325,224 1,221,619 2,467,717 - - Bond proceeds - - - 13,900,000 - 26,965,000 12,644,906 20,755,000 - -

Total other financing sources(uses) 1,791,701$ 2,071,968$ 2,151,799$ 2,869,299$ 3,390,782$ 18,666,764$ 3,034,673$ 1,992,163$ (669,672)$ 3,311,003$

Net change in fund balances (7,108,523)$ (5,061,913)$ (542,672)$ 566,351$ (1,294,086)$ 14,769,464$ (1,021,558)$ (10,880,298)$ (7,491,151)$ (769,872)$

Debt service as a percentage of noncapital expenditures 13.3% 12.6% 13.4% 12.0% 11.2% 8.9% 13.8% 9.9% 11.1% 11.2%

148

Ad Hotel/Fiscal Valorem Sales Use Franchise Liquor MotelYear Tax Tax Tax Tax Tax Tax Totals

2008 92,692$ 41,103,489$ 2,264,335$ 1,836,994$ 29,400$ 417,905$ 45,744,815$

2009 - 43,462,875 2,826,531 1,924,619 36,900 364,232 48,615,157

2010 - 41,155,192 2,158,611 1,848,384 36,900 345,208 45,544,295

2011 - 42,592,891 2,706,737 2,301,455 39,850 344,968 47,985,901

2012 - 48,573,889 2,678,953 2,066,159 40,392 391,664 53,751,057

2013 - 58,707,772 3,092,764 2,116,254 41,617 421,979 64,380,386

2014 - 60,946,182 3,561,151 2,228,284 41,433 443,663 67,220,713

2015 - 63,188,721 4,076,928 2,282,884 44,433 453,376 70,046,342

2016 - 63,419,072 4,363,029 2,231,857 49,633 464,362 70,527,953

2017 - 62,905,560 4,602,444 2,086,557 60,000 464,292 70,118,853

CITY OF EDMOND, OKLAHOMAGOVERNMENTAL ACTIVITIES TAX REVENUES BY SOURCE


149

TABLE 6

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Residential 34,186,769$ 38,174,103$ 37,654,681$ 39,450,423$ 44,917,923$ 42,678,657$ 45,419,073$ 49,882,043$ 54,344,401$ 57,601,509$ Commercial 17,187,660 18,854,931 17,716,150 17,706,025 20,110,914 19,814,031 21,837,857 20,854,463 26,186,761 27,314,591 Large Commercial & Industrial 974,507 963,824 859,249 846,672 879,907 855,677 920,361 779,163 1,136,853 1,256,929 Other 5,288,332 5,710,357 5,364,308 5,664,118 6,029,794 5,806,358 6,578,831 6,619,510 8,267,848 8,797,452

Totals 57,637,268$ 63,703,215$ 61,594,388$ 63,667,238$ 71,938,538$ 69,154,723$ 74,756,122$ 78,135,179$ 89,935,863$ 94,970,481$

Source: City of Edmond Utility Customer Service Department

CITY OF EDMOND, OKLAHOMAELECTRICITY REVENUE BY CUSTOMER TYPE

LAST TEN FISCAL YEARS

150

LAST TEN YEARS

TABLE 7

Taxpayer

Ran

k Value % of Total

Ran

k Value % of Total

Ran

k Value% of Total

Ran

k Value% of Total

Ran

k Value% of Total

Ran

k Value% of Total

Ran

k Value% of Total

Ran

k Value% of Total

Ran

k Value% of Total

Ran

k Value% of Total

Edmond Public Schools 2 1,606,329$ 2.8% 3 2,127,093$ 3.3% 2 2,083,285$ 3.4% 3 1,693,712$ 2.7% 2 1,957,444$ 2.7% 2 1,847,810$ 2.7% 2 2,161,015$ 2.9% 1 2,437,296$ 3.1% 1 2,577,853$ 2.9% 1 2,490,373$ 2.6%

City of Edmond 1 1,956,377$ 3.4% 1 2,400,975$ 3.8% 1 2,185,377$ 3.5% 1 2,049,567$ 3.2% 1 2,076,083$ 2.9% 1 1,993,673$ 2.9% 1 2,307,101$ 3.1% 2 2,265,985$ 2.9% 2 2,480,011$ 2.8% 2 2,265,360$ 2.4%

University of Central Oklahoma 3 1,539,092$ 2.7% 2 2,194,299$ 3.4% 3 2,072,185$ 3.4% 2 1,754,771$ 2.8% 3 1,789,302$ 2.5% 3 1,719,861$ 2.5% 3 1,078,747$ 1.4% 3 1,825,544$ 2.3% 3 1,851,218$ 2.1% 3 1,377,662$ 1.5% 0.0%

Walmart 4 737,862$ 1.3% 4 971,947$ 1.5% 4 827,417$ 1.3% 4 759,208$ 1.2% 4 851,814$ 1.2% 4 779,495$ 1.1% 4 806,165$ 1.1% 4 1,046,622$ 1.3% 4 811,535$ 0.9% 4 822,461$ 0.9%

Mercy Health -$ 0.0% -$ 0.0% -$ 0.0% -$ 0.0% -$ 0.0% -$ 0.0% -$ 0.0% 5 833,125$ 1.1% 5 674,400$ 0.7% 5 700,892$ 0.7%

Homeland Stores 5 334,632$ 0.6% 7 394,957$ 0.6% 8 337,554$ 0.5% 8 281,059$ 0.4% 9 306,271$ 0.4% 9 292,138$ 0.4% 9 363,000$ 0.5% 7 491,979$ 0.6% 6 393,246$ 0.4% 6 396,914$ 0.4%

Edmond YMCA -$ 0.0% -$ 0.0% -$ 0.0% -$ 0.0% -$ 0.0% -$ 0.0% -$ 0.0% 9 448,296$ 0.6% 7 379,453$ 0.4% 7 388,111$ 0.4%

Lowe's 10 206,106$ 0.4% 8 337,108$ 0.5% 6 406,365$ 0.7% 6 330,251$ 0.5% 7 363,185$ 0.5% 8 342,856$ 0.5% 8 373,712$ 0.5% 8 452,313$ 0.6% 8 355,156$ 0.4% 8 362,301$ 0.4%

Crest Foods 7 281,402$ 0.5% 5 442,393$ 0.7% 5 411,060$ 0.7% 5 339,516$ 0.5% 5 375,621$ 0.5% 7 359,406$ 0.5% 7 389,113$ 0.5% 10 447,974$ 0.6% -$ 0.0% 9 358,587$ 0.4%

Integris Health Edmond -$ 0.0% -$ 0.0% -$ 0.0% -$ 0.0% 8 349,842$ 0.5% 5 479,408$ 0.7% 5 511,748$ 0.7% 6 494,264$ 0.6% 9 310,761$ 0.3% 10 355,621$ 0.4%0.0%

OU Medical Center 6 334,020$ 0.6% 6 426,035$ 0.7% 7 395,136$ 0.6% 7 315,069$ 0.5% 6 373,020$ 0.5% 6 360,258$ 0.5% 6 438,975$ 0.6% -$ 0.0% 10 291,105$ 0.3% -$ 0.0%

Oak Tree Partners LLC -$ 0.0% -$ 0.0% 9 272,404$ 0.4% 10 255,308$ 0.4% 10 278,929$ 0.4% 10 276,202$ 0.4% 10 310,054$ 0.4% -$ 0.0% -$ 0.0% -$ 0.0%Henderson Hills Baptist Church -$ 0.0% -$ 0.0% -$ 0.0% 9 255,308$ 0.4% -$ 0.0% -$ 0.0% -$ 0.0% -$ 0.0% -$ 0.0% -$ 0.0%Target 9 237,446$ 0.4% 10 299,360$ 0.5% 10 271,484$ 0.4% -$ 0.0% -$ 0.0% -$ 0.0% -$ 0.0% -$ 0.0% -$ 0.0% -$ 0.0%UPC Acquisition Corp. 8 257,523$ 0.4% -$ 0.0% -$ 0.0% -$ 0.0% -$ 0.0% -$ 0.0% -$ 0.0% -$ 0.0% -$ 0.0% -$ 0.0%OSBI -$ 0.0% 9 315,726$ 0.5% -$ 0.0% -$ 0.0% -$ 0.0% -$ 0.0% -$ 0.0% -$ 0.0% -$ 0.0% -$ 0.0%Totals 7,490,789$ 13.0% 7,467,074$ 11.7% 7,178,982$ 11.7% 6,340,056$ 10.0% 6,764,067$ 9.4% 6,603,297$ 9.5% 8,739,630$ 11.7% 10,743,399$ 13.7% 10,124,738$ 11.3% 9,518,282$ 10.0%

Total Electric Revenue (see Table 6) 57,637,268$ 63,703,216$ 61,594,388$ 63,667,237$ 71,938,538$ 69,154,723$ 74,756,124$ 78,135,179$ 89,935,863$ 94,970,481$

2014 2015


2016


2009 2010 2012 2017

TOP TEN ELECTRIC CUSTOMERS

2011 20132008

151

ELECTRICITY RATES

LAST TEN YEARS TABLE 8

Edm Elec Edm Elec Edm Elec Edm Elec Edm Elec

Rate Code Rate Schedule Units01/01/2007 -

01/01/2010 01/01/2010-11/01/1311/01/2013-

11/1/201411/01/2014-

11/1/201511/01/2015-

11/1/2017

13 R -1 Residential

Customer Charge $/mo 6.05 12.48 13.50 14.00 14.00

Energy Charge

Shoulder - May

First 600 kWh $/kWh 0.0792 0.0806 0.0822 0.0843 0.0851

Add'l kWh over 600 $/kWh 0.0569 0.0806 0.0822 0.0843 0.0851

Summer (Jun-Sep)

First 1,400 kWh $/kWh 0.0795 0.0806 0.0822 0.0843 0.0851

Add'l kWh over 1,400 $/kWh 0.0807 0.0833 0.0849 0.0870 0.0957

Shoulder - Oct

First 600 kWh $/kWh 0.0792 0.0806 0.0822 0.0843 0.0851

Add'l kWh over 600 $/kWh 0.0569 0.0806 0.0822 0.0843 0.0851

Winter (Nov-Apr)

First 600 kWh $/kWh 0.0792 0.0806 0.0822 0.0843 0.0851

Add'l kWh over 600 $/kWh 0.0444 0.0452 0.0468 0.048 0.0485

14 LIHEAP-1 Low Income Home Energy Assistance Program Rider


Energy Charge

Summer (Jun-Sept)

First 600 kWh $/kWh 0.0795 0.0806 0.0822 0.0843 0.0851

Add'l kWh over 600 $/kWh 0.0807 0.0833 0.0849 0.0870 0.0957

Winter (Nov-Apr)

First 600 kWh $/kWh 0.0792 0.0806 0.0822 0.0843 0.0851

Add'l kWh over 600 $/kWh 0.0444 0.0452 0.0468 0.048 0.0485

Summer & Shoulder (May-Oct) $/kWh same as R-1 same as R-1 same as R-2 same as R-2 same as R-2

* Acceptance requires quaification by DHS prior to annual participation.

06 GS-1 General Service


Energy Charge

Summer (Jun-Oct)

All kWh $/kWh 0.0993 0.1003 0.1004 0.1029 0.1055

Winter (Nov-May)

First 1000 kWh $/kWh 0.0897 0.0864 0.0865 0.0886 0.0908

Add'l kWh over 1000 $/kWh 0.0540 0.0480 0.0481 0.0493 0.0505

(Continued)


152

ELECTRICITY RATES




01/01/2010 01/01/2010-11/01/1311/01/2013-

11/1/201411/01/2014-

11/1/201511/01/2015-

11/1/2017


05 GS-TOU General Service Time-of-Use


TOU Meter Charge (Jun-Oct) $/mo 10.23 0 0 0 0

Energy Charge Summer On-Peak Hours (2p-8p) $/kWh 0.2899 0.2880 0.3350 0.3434 0.3520 Summer Off-Peak Hours $/kWh 0.0540 0.0480 0.0481 0.0491 0.0503

Winter

First 1000 kWh $/kWh 0.0897 0.0864 0.0865 0.0882 0.0904

Add'l kWh over 1000 $/kWh 0.0540 0.0480 0.0481 0.0491 0.0503

39 PL-1 Power & Light


Capacity Charge (new 25% ratchet) Summer (Jn-Oct) $/kW 11.34 11.76 13.04 13.37 13.7 Winter (Nov-May) $/kW 5.43 6.10 8.00 8.20 8.40

Energy Charge

First 1,000,000 kWh $/kWh 0.0395 0.0403 0.0403 0.0413 0.0423

All Add'l kWh $/kWh 0.0365 0.0403 0.0403 0.0413 0.0423

36 PL-TOU Power & Light Time-of-Use


TOU Meter Charge (Summer) $/mo 0 0 0 0 0

Capacity Charge

Summer

Max Billing Demand $/kW 1.15 1.21 1.52 1.54 1.58

On-Peak Hrs Demand $/kW 10.19 10.71 13.5 13.64 13.68

Winter

Max Billing Demand $/kW 5.43 5.70 6.70 6.77 6.80

Energy Charge

First 1,000,000 kWh $/kWh 0.0395 0.0415 0.0415 0.0423 0.0428

All Add'l kWh $/kWh 0.0365 0.0383 0.0383 0.0391 0.0398

(Continued)

153

ELECTRICITY RATES




01/01/2010 01/01/2010-11/01/1311/01/2013-

11/1/201411/01/2014-

11/1/201511/01/2015-

11/1/2017


35 LPL-TOU Large Power & Light Time-of-Use


Capacity Charge (new 25% ratchet)

Summer (Jun-Oct) mo. Max. Demand $/kW 0.42 5.21 6.5 6.63 6.79

On-Peak 2p-8p (except Sun.*) $/kW 7.81 0 0 0 0

Winter (Nov-May) $/kW 4.40 5.21 6.50 6.63 6.79

Energy Charge

First 2,000,000 kWh/month $/kWh 0.0402 0 0 0 0

All Additional kWh/month $/kWh 0.0365 0 0 0 0

* for OG&E summer On-Peak, all weekends and 3 holidays are exempt.

On Peak kWh/mo (June 1-Sept 30, 2-7:00 pm) $/kWh 0.1150 0.1302 0.1328 0.1361

Off-Peak kWh/mo $/kWh 0.0343 0.0325 0.0332 0.034

Winter Season: All kWh $/kWh 0.0343 0.0325 0.0332 0.034

51 PS-ND-1 Public Schools Non Demand


Energy Charge

Summer (Jun-Oct)

All kWh $/kWh 0.0990 0.1003 0.1003 0.1028 0.1054

Winter (Nov-May)

First 1000 kWh $/kWh 0.0897 0.0874 0.0874 0.0896 0.0918

Add'l kWh over 1000 $/kWh 0.0537 0.0518 0.0577 0.0591 0.0606

GPWR GPWR Green Power Wind Rider (for all standard rates) Wind Selection Charge $/kWh 0.0009 0.0027 0.0027 0.0027 0.00556

(Customer selects 100% or fixed 100kWh blocks subject to WSC.

This WSC rate is added to, and monthly FCA is subtracted from, the standard rate calculation

for customer's selected quantity of wind power kWh.)

Existing Monthly Monthly Monthly Monthly Monthly

44 OAL-1 Outdoor Security Lighting Wood Pole KWH KWH KWH KWH KWH

Base Charge

7,000 Mercury Vapor * (71kWh/mo) 8.49 5.52 7.49 8.49 8.49 8.49

9,500 High Pressure Sodium (41kWh/mo) 6.86 5.66 5.86 6.86 6.86 6.86

14,000 Metal Halide - Directional 13.91 14.37 12.91 13.91 13.91 13.91

15,500 High Pressure Sodium 9.06 8.24 8.06 9.06 9.06 9.06

25,000 High Pressure Sodium 12.62 11.64 11.62 12.62 12.62 12.62

*Not available for new installations

(Continued)

154

ELECTRICITY RATES




01/01/2010 01/01/2010-11/01/1311/01/2013-

11/1/201411/01/2014-

11/1/201511/01/2015-

11/1/2017


Additional Charges

Extension of Secondary Circuit and Wood Pole

30 foot pole 5.37 2.85 4.37 5.37 5.37 5.37

35 foot pole 7.24 4.32 6.24 7.24 7.24 7.24

40 foot pole 8.01 5.1 7.01 8.01 8.01 8.01

45 foot pole 8.97 5.72 7.97 8.97 8.97 8.97

50 foot pole 9.93 6.18 8.93 9.93 9.93 9.93

*with wiring requirement of 150 feet or less

Underground wiring additional 0 1.52 3.46 0 0 0

*If pole has to be hand set additional charge 0.00 170 354 0 0 0

Ornamental Lighting Fixtures

Base Charge 12.5

9,500 High Pressure Sodium on 22.84 12.5 18.84 22.84 22.84 22.84

24 foot fiberglass pole (41 kWh/mo) 41 41 41 41 41

26 PM-1 Municipal Water Pumping


Energy Charge Summer (Jun-Oct) $/kW 0.0565 0.0634 0.0662 0.0679 0.0696 Winter (Nov-May) $/kW 0.0552 0.0480 0.0500 0.0513 0.0526

99 TSL-LED-1 Traffic Signal Lights


Energy Charge Monthly KWH Monthly KWH Monthly KWH Monthly KWH Monthly KWH

Per intersection (250 kWh/mo) 19.98 19.98 19.98 19.98 21.00 21.00

OWD OWD-1 Outdoor Warning Device (7-1-08)

Customer Charge 11.16 11.16 11.16 11.16 11.16

Energy Charge n/c n/c n/c n/c n/c

LM-1 LM-1 Municipal Roadway & Area Lighting

Base Charge

7,000 Lumens-MV Lamps *(71kWh/mo) 5.53 5.76 5.76 5.76 5.76



9,500 Lumens-High Pressure Sodium (41kWh/mo) 5.14 4.90 4.90 4.90 4.9


25,000 Lumens-HPS (Directional) (107kWh/mo) 11.22 10.85 10.85 10.85 10.85


14,000 Lumens-HMLamps (Directional) (71kWh/mo) 13.02 9.50 9.50 9.50 9.5

(Continued)

155

ELECTRICITY RATES




01/01/2010 01/01/2010-11/01/1311/01/2013-

11/1/201411/01/2014-

11/1/201511/01/2015-

11/1/2017


Sign & Underpass Lighting Fixtures

7,000 Mercury Vapor *** (71 kWh/mo) 10.71 7.01 7.01 7.01 7.01

9,500 High Pressure Sodium (41 kWh/mo) 8.75 7.01 7.01 7.01 7.01

*Not available for new installations

**When installed on High Mast Lighting System

***These are available for new installations only as sign lighting

Additional Charges

Standard Wood Pole

Extention of Secondary Circuit and Wood Pole

30 foot pole 2.85 3.17 3.17 3.17 3.17

35 foot pole 4.32 4.70 4.70 4.70 4.70

40 foot pole 5.10 5.47 5.47 5.47 5.47

45 foot pole 5.72 6.14 6.14 6.14 6.14

50 foot pole 6.18 6.72 6.72 6.72 6.72

*with wiring requirement of 150 feet or less

Each additional 5 feet 3.25 3.36 3.36 3.36 3.36

Standard Pole other than Wood

15 to 19 foot 4.63 5.09 5.09 5.09 5.09

20 to 24 foot 4.94 5.47 5.47 5.47 5.47

25 to 27 foot 6.19 6.82 6.82 6.82 6.82

28 to 32 foot 7.2 7.58 7.58 7.58 7.58

33 to 37 foot 10.82 11.52 11.52 11.52 11.52

38 to 42 foot 15.45 16.22 16.22 16.22 16.22

43 to 47 foot 20.48 21.31 21.31 21.31 21.31

Ornamental Type Fixtures

*7,000 Lumen MV w 19' Steel Pole (71 kWh/mo) 10.96 11.96 11.96 11.96 11.96

9,500 HPS w 19' Steel Pole (41 kWh/mo) 10.57 11.52 11.52 11.52 11.52

20,000 Lumen MV w 24' Steel Pole (161 kWh/mo) 18.26 19.26 19.26 19.26 19.26

25,000 Lumen HPS w 24' Steel Pole (107 kWh/mo) 17.56 18.82 18.82 18.82 18.82

Note: Data is presented only for years including and subsequent to implementation of GASB 44.


156

FYE June 30, Electric Water Wastewater

2017 39,018 29,798 30,5842016 38,468 29,286 30,1122015 37,953 28,770 29,9832014 38,110 28,747 29,9582013 37,665 28,137 29,2602012 36,785 27,551 28,7932011 35,827 27,027 28,3212010* 35,300 26,756 28,4132009* 34,867 26,434 28,0622008* 34,635 26,233 27,902

*Prior to FYE June 30, 2011, numbers were based on calendar year.

CITY OF EDMOND, OKLAHOMAHISTORICAL UTILITY CUSTOMERS

LAST TEN FISCAL YEARSTABLE 9

157

WATER CUSTOMERS

Usage (gallons) Revenue

% of Total Revenue

University of Central Oklahoma 68,899 $523,507 2.03Edmond Public Schools 38,704 325,414 1.26City of Edmond 33,206 289,509 1.12Edmond Medical (OU Medical Ctr) 13,713 100,250 0.39BRE Silver MF Second OK 14,769 96,569 0.37Rolling Green Apts 15,288 94,870 0.37Apple Village MH Est 11,668 79,236 0.31YMCA 10,703 78,247 0.3DW Wynn LLC 10,622 65,556 0.25Kickingbird Hills LLC 10,175 63,933 0.25

WASTEWATER CUSTOMERS

Usage (gallons) Revenue

% of Total Revenue

University of Central Oklahoma 31,967 $186,842 1.27Edmond Public Schools 28,583 132,284 0.9BRE Silver MF Second OK 14,769 91,479 0.62City of Edmond 13,989 85,483 0.58Rolling Green Apts 15,288 61,383 0.42Edmond Medical (OU Medical Ctr) 11,213 40,967 0.28Integris Health Edmond 8,132 39,491 0.27AE Sunset LLC 4,475 36,740 0.25Enclave Apartments Covell Village LLC 4,063 35,762 0.24SL Copper Lake Estates, LLC 5,015 31,156 0.21

Comparisons to ten year prior were not available. City began tracking data in FY 17.

CITY OF EDMOND, OKLAHOMATEN LARGEST WATER and WASTEWATER CUSTOMERS

FISCAL YEAR ENDED JUNE 30, 2017Table 10

158

CITY OF EDMOND, OKLAHOMASALES TAX RATES OF DIRECT AND OVERLAPPING GOVERNMENTS


2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

City 3.25% 3.25% 3.25% 3.25% 3.75% 3.75% 3.75% 3.75% 3.75% 3.75%Oklahoma County 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%State of Oklahoma 4.50% 4.50% 4.50% 4.50% 4.50% 4.50% 4.50% 4.50% 4.50% 4.50%

Total 7.75% 7.75% 7.75% 7.75% 8.25% 8.25% 8.25% 8.25% 8.25% 8.25%

159


TAXABLE SALES BY CATEGORY

LAST TEN FISCAL YEARSTABLE 12

2008 2009 2010 2011 2012 2013* 2014 2015 2016 2017

Agri, forestry, fishing hunting 55,375$ 98,379$ 42,304$ 31,739$ 56,292$ 20,050$ 28,889$ 30,001$ 60,000$ 29,640$ Mining, oil and gas extraction 29,076 64,906 1,736 46,492 66,585 5,204 6,252 4,025 23,069 4,398 Utilities 2,787,641 2,962,614 2,904,097 2,807,077 2,969,951 2,185,463 3,609,167 3,844,159 4,303,732 4,185,086 Construction 28,500 36,612 36,107 32,830 69,507 50,217 75,608 70,085 93,837 76,133 Mfg‐foods, textile, tobacco - - - - - 110,738 254,580 261,041 170,026 135,775 Mfg‐building, books, glass, brick, concrete 395,719 318,134 213,983 211,016 303,993 1,075,374 1,170,308 1,260,151 1,241,830 1,212,959 Mfg‐iron,steel,sign,construction equipment, hardware 759,798 568,332 568,108 472,631 546,054 Wholesale trade‐Automobiles, tires - - - - - 62,456 69,034 89,854 57,888 65,600 Wholesale trade‐Furniture, home furnishings - - - - - 49,323 115,615 55,968 52,671 52,147 Wholesale trade‐Lumber, brick, roofing, siding - - - - - 215,711 199,677 232,700 306,025 419,681 Wholesale trade‐Office & medical equipment, hardware,

electrical appliances - - - - - 631,941 708,417 643,930 658,976 627,313 Wholesale trade‐Heat & Air, plumbing, farm, garden,

transportation, industrial equipment 2,966,272 4,257,938 2,311,014 2,554,821 3,149,901 1,918,186 2,229,790 2,171,456 2,062,887 2,208,374 Wholesale trade‐Sporting goods, office supplies, drugs, apparel - - - - - 224,288 228,999 346,309 377,292 379,660 Wholesale trade‐Grocery, meat, fish, fruit, dairy - - - - - 119,956 111,759 113,885 125,520 100,506 Wholesale trade‐Chemical, plastics, paint, books, florists, farm

supplies - - - - - 179,414 214,533 204,729 186,588 179,617 Retail trade‐cars, boats, tire, parts 1,180,533 1,094,582 1,208,563 1,310,926 1,260,293 Retail trade‐furn, household, computer, cameras 2,689,076 2,669,621 2,394,461 2,584,712 3,105,063 3,667,788 2,972,839 3,660,727 3,241,497 2,335,148 Retail trade‐hardware, building materials, paint, nursery 4,844,080 5,048,412 4,676,327 4,417,446 4,967,601 7,274,378 7,228,993 6,395,382 6,613,579 7,199,258 Retail trade‐grocery 2,956,101 3,217,337 3,391,516 3,801,497 4,475,165 5,730,617 5,680,279 6,175,940 6,197,197 5,882,182 Retail trade‐wine, beer, liquor stores 5,199,041 5,296,659 5,306,478 5,613,523 6,193,801 917,293 838,136 902,803 982,101 1,064,510 Retail trade‐health, pharmacies, 4,196,902 4,408,032 4,515,923 4,697,973 5,197,419 1,447,945 1,391,971 1,352,040 1,529,810 1,676,903 Retail trade‐gasoline with conv. Stores 806,783 796,361 852,484 997,628 1,085,814 316,627 477,195 640,540 577,858 557,585 Retail trade‐clothing, shoes, jewelry 1,347,014 1,407,880 1,495,670 1,522,093 1,631,106 2,213,029 2,135,798 2,138,160 2,099,602 2,131,216 Retail trade‐sporting goods, hobby, sewing, musical - - - - - 1,751,700 1,721,282 1,777,882 1,674,319 1,486,384 Retail trade‐dept stores, gen merchandise 8,165,460 8,430,100 8,427,080 8,509,668 8,974,710 11,359,340 12,471,298 13,097,434 13,351,178 13,398,886 Retail trade‐florist, office supplies, pet, art, vending, used merch. - - - - - 1,975,995 2,145,195 2,054,285 1,991,553 1,970,945 Transportation and warehousing‐towing, freight, trucking 18,522 33,001 59,514 69,007 62,873 168,612 179,183 337,113 25,110 33,528 Transportation and warehousing‐warehousing and storage - - - - - 19,378 26,904 20,387 15,928 14,079 Information‐newspaper, cable, wireless 2,024,068 2,115,513 2,107,808 2,063,197 2,116,694 2,267,040 2,149,341 2,185,157 2,128,055 2,015,693 Finance and insurance 15,702 12,369 9,858 7,492 11,467 51,315 108,285 23,316 24,089 19,850 Real estate and rental and leasing 480,483 533,356 493,928 489,984 633,883 950,089 951,448 957,366 1,109,411 964,881 Professional, scientific, and technical services 17,679 23,696 22,068 25,167 25,149 440,391 282,425 227,880 161,879 151,350 Adm. & support and waste mangement and remediation services - - - - - 39,309 33,548 40,869 62,411 61,858 Educational services - - - - - 42,272 36,647 42,600 23,418 18,908 Health care and social assistance‐doctors, chiropractors, eye,

family services 248,418 259,991 248,369 255,986 272,925 23,351 21,599 15,736 15,840 22,207 Arts, Entertainment, and Recreation‐golf, fitness, bowling,

museums 163,301 163,467 155,084 148,431 117,573 448,675 764,894 865,127 1,009,240 947,246 Accommodation and Food Services ‐Hotels 352,794 308,276 285,609 304,701 358,175 476,835 611,217 1,410,566 903,853 463,927 Accommodation and Food Services ‐Restaurants, Bars 948,339 891,543 786,322 804,873 929,140 7,718,137 7,092,658 6,901,495 7,565,202 8,346,711 Other Services (Auto, Electronic repairs, Salons, funeral 376,616 392,206 401,687 459,313 472,940 692,889 702,250 707,734 793,278 831,390 Public Administration‐Regulation of Transportation Programs (13) (139) 138 562,687 88 Unclassified 256,191 192,498 323,703 530,895 677,950 (20,517) 667,328 429,028 - -

$ 41,369,153 $ 43,938,901 41,463,130 42,987,561 47,925,677 58,761,128 61,376,116 63,464,669 64,162,993 63,077,969

(1) The source for taxable sales by category is the Oklahoma Tax Commission. This amount is the gross amount before the State retains portion for revolving fund. Note: in FY 2013, the Oklahoma Tax Commission changed their SIC codes and now

use NAICS codes. These new codes have more categories than in previous years. We matched previous years as best that we could to match to the new codes descriptions.

160

TABLE 13

MonthSales Tax

RateSales TaxRevenues

Sales Tax Rate

Sales TaxRevenues

Sales Tax Rate

Sales TaxRevenues

July 3.75% 5,348,556$ 3.75% 5,270,209$ 3.75% 5,421,323$ August 3.75% 5,249,321 3.75% 5,830,639 3.75% 5,337,927 September 3.75% 5,401,153 3.75% 5,394,795 3.75% 5,378,441 October 3.75% 5,458,570 3.75% 5,615,741 3.75% 5,561,355 November 3.75% 5,267,714 3.75% 5,358,088 3.75% 5,259,576 December 3.75% 5,313,129 3.75% 5,256,228 3.75% 5,101,358 January 3.75% 5,386,949 3.75% 5,392,339 3.75% 5,338,209 February 3.75% 5,367,870 3.75% 5,491,711 3.75% 5,629,032 March 3.75% 4,925,300 3.75% 4,893,519 3.75% 4,949,144 April 3.75% 4,777,946 3.75% 4,930,408 3.75% 4,543,986 May 3.75% 5,228,042 3.75% 5,312,763 3.75% 5,239,407 June 3.75% 5,257,846 3.75% 5,065,937 3.75% 5,269,219 TOTAL 62,982,396$ 63,812,377$ 63,028,977$

Source: Oklahoma Tax Commission

CITY OF EDMONDMONTHLY SALES TAX REVENUES COMPARISON

LAST THREE FISCAL YEARS

FYE June 30, 2017 FYE June 30, 2016 FYE June 30, 2015

161

TABLE 14

Fiscal Year PercentageEnded June 30, Rate (1) Revenues (1) 3/4 Cent (2) Increase

2017 3.75% $62,982,395 $12,596,479 -1.30%2016 3.75% 63,812,377 12,762,475 1.24%2015 3.75% 63,028,977 12,605,795 4.30%2014 3.75% 60,431,416 12,086,283 2.85%2013 3.75% 58,759,119 11,751,824 13.11%2012 3.25%, 3.75% (3) 46,164,747 10,389,380 5.84%2011 3.25% 42,536,197 9,816,045 3.57%2010 3.25% 41,069,454 9,477,566 -5.83%2009 3.25% 43,613,694 10,064,699 7.00%2008 3.25% 40,761,936 9,406,601 3.56%

(1) Source: Oklahoma Tax Commission. Sales Tax Revenues returned to the City consist ofSales Tax Collections plus earned interest less monies allocated to the Revolving Fund.

(2) Calculated Sals Tax Revenues available for the appropriation by the City to the Authority assecurity for the Bonds. See "SECURITY FOR THE BONDS - Pledge of Revenues" herein.

(3) Sales Tax Rates were 3.25% for 10 months then 3.75% for 2 months.

CITY OF EDMONDHISTORICAL SALES TAX REVENUES

LAST TEN FISCAL YEARS

Sales Tax

162

CITY OF EDMOND, OKLAHOMARATIO FOR OUTSTANDING DEBT BY TYPE


Revenue Capital Revenue Captial Total % of TotalFiscal Bonds Leases Bonds Notes Leases Primary Personal Debt PerYear Payable Payable Payable Payable Payable Government Income Capita*

2008 76,430,000$ - 62,620,000$ 23,188,242$ 50,665$ 162,288,907$ 7.06% 2,047$

2009 72,985,000 - 58,685,000 22,186,681 50,761 153,907,442 6.70% 1,911$

2010 69,390,000 - 54,590,000 21,156,506 - 145,136,506 5.13% 1,783$

2011 66,845,000 - 50,695,000 20,096,707 - 137,636,707 5.07% 1,691$

2012 62,750,000 - 46,625,000 19,010,890 - 128,385,890 3.96% 1,536$

2013 73,260,000 - 42,400,000 17,891,382 - 133,551,382 3.97% 1,582$

2014 67,821,392 - 37,895,094 17,521,569 - 123,238,055 3.79% 1,447$

2015 62,153,107 - 30,443,608 16,275,467 - 108,872,182 3.18% 1,239$

2016 55,788,256 - 28,716,894 14,999,365 - 99,504,515 2.91% 1,132$

2017 49,258,947 - 66,101,745 13,688,263 - 129,048,955 3.77% 1,469$

* Population is calculated at calender year end prior to fiscal year. See Table 16

Business-Type ActivitiesGovernmental Activities

163

CITY OF EDMOND, OKLAHOMARATIO OF NET GENERAL BONDED DEBT TO ASSESSED

VALUE AND NET BONDED DEBT PER CAPITALast Ten Fiscal Years

TABLE 16

Ratio ofLess Net Bonded Net

Net * Gross Debt Net Debt to BondedFiscal Assessed Bonded Service Bonded Assessed DebtYear Population Value Debt Funds Debt Value Per Capita

2008 80,364 (4) 716,953,613$ - - - 0.00% -

2009 80,535 (5) 762,213,816 - - - 0.00% -

2010 81,395 (5) 786,787,845 - - - 0.00% -

2011 81,405 (6) 806,652,399 - - - 0.00% -

2012 83,591 (7) 824,050,837 - - - 0.00% -

2013 84,404 (7) 854,180,987 - - - 0.00% -

2014 85,190 (7) 902,595,017 - - - 0.00% -

2015 87,877 (7) 961,313,411 - - - 0.00% -

2016 89,065 (7) 1,017,637,106 - - - 0.00% -

2017 89,431 (7) 1,060,520,613 - - - 0.00% -

Note: Details regarding the city's outstanding debt can be found in the notes to the financial statements.* Oklahoma County Assessor's Report 2017

(4) City of Edmond GIS Department, estimate only based on current Building Permits for 2008(5) City of Edmond, GIS/Planning Department 2001-2010

Based on the Amercian Community Survey Avg HH, and Building Permits since 2000 Census(6) 2010 Census(7) City of Edmond Planning Department, estimate based on the 2010 Census, current Building Permits,

the Edmond Economic Development Authority Average House Hold (HH) size, and the AmericanCommunity Survey Occupancy Rate

164

CITY OF EDMOND, OKLAHOMACOMPUTATION OF DIRECT AND OVERLAPPING DEBT

June 30, 2017TABLE 17

Percentage (2) AmountNet (1) Applicable to Applicable toDebt City of City of

Jurisdiction Outstanding Edmond Edmond

Direct - City of Edmond 62,153,107$ 100.00% $62,153,107

Overlapping: Edmond School District 131,110,009$ 53.88% 70,642,073

Oklahoma County 46,541,322 14.43% 6,715,913

Total $239,804,438 $139,511,093

(1) City of Edmond does not have any GO Bonds. Amount shown is direct debt for governmental activities.

(2) Determined by ratio of assessed valuation of property subject to taxation in overlapping unit to valuation of property subject to taxation in the City of Edmond.

165

CITY OF EDMOND, OKLAHOMALEGAL DEBT MARGIN INFORMATION


2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Debt limit 71,695,361$ 76,221,382$ 78,678,785$ 80,665,240$ 82,405,084$ 85,418,099$ 90,259,502$ 96,131,341$ 1,017,637,106$ 1,060,520,613$

Total net debt applicable to limit - - - - - - - - - -

Legal debt margin 71,695,361$ 76,221,382$ 78,678,785$ 80,665,240$ 82,405,084$ 85,418,099$ 90,259,502$ 96,131,341$ 1,017,637,106$ 1,060,520,613$

Total net debt applicable to the limit as a percentage of debt limit 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%

Legal Debt Margin Calculation for Fiscal Year 2017

Net assessed valuation 1,060,520,613$

Debt limit (10% of total assess value) 106,052,061$ Debt applicable to limit:

General obligation bonds -$

Less: Street bonds outstanding -

Total net debt applicable to limit -

Legal debt margin 106,052,061$

Note: Article 10, Section 26 of the Constitution of the State of Oklahoma limits municipal debt to 10% of net assessed valauation. Article 10, Section 27 of the Constitution of the State of Oklahoma limits municipal debt to non-utility or non-street purposes.

166

CITY OF EDMOND, OKLAHOMATHE EDMOND PUBLIC WORKS AUTHORITY

UTILITY SYSTEMS DIVISION - PLEDGED REVENUE COVERAGELast Ten Fiscal Years

TABLE 19

Net Revenue Maximum

Eligible Eligible Available for Annual Revenue Bond

Revenues Expenses1Debt Service Debt Service Coverage

2008 Sales Tax and Utility Revenue Bonds Series 2001, 2003, 2004, 2005 98,908,461$ 79,729,807$ 19,178,654$ 6,882,981$ 2.79 Utility Revenue Bonds Series 1998, 1999, 2003, 2004, 2005 114,558,163 72,725,121 41,833,042 8,443,233 4.95 OWRB Series 2005, 2006 114,558,163 72,725,121 41,833,042 8,443,233 4.95

2009 Sales Tax and Utility Revenue Bonds Series 2001, 2003, 2004, 2005 106,361,912 81,058,262 25,303,650 6,822,981 3.71

Utility Revenue Bonds Series 1998, 1999, 2003, 2004, 2005 123,109,588 74,052,201 49,057,387 8,443,233 5.81 OWRB Series 2005, 2006 123,109,588 74,052,201 49,057,387 8,443,233 5.81





2012 Sales Tax and Utility Revenue Bonds Series 2001, 2003, 2004, 2005, 2010 111,304,738 91,610,054 19,694,684 6,990,269 2.82


2013 Sales Tax and Utility Revenue Bonds Series 2004, 2005, 2010, 2012, 2013 124,463,512 109,885,068 14,578,444 8,552,264 1.70

Utility Revenue Bonds Series 2003, 2004, 2005 144,078,716 90,796,258 53,282,458 8,443,233 6.31 OWRB Series 2005, 2006 144,078,716 90,795,258 53,282,458 8,443,233 6.31

2014 Sales Tax and Utility Revenue Bonds Series 2005, 2010, 2012, 2013, 2014 131,616,376 115,686,623 14,578,444 8,552,264 1.70 Utility Revenue Bonds Series 2005, 2014 152,179,138 94,999,819 53,282,458 8,399,737 6.34 OWRB Series 2005C, 2013 General Sales Revenue Note 152,179,138 94,999,819 53,282,458 8,399,737 6.34

2015 Sales Tax and Utility Revenue Bonds Series 2010, 2012, 2013, 2014 and 2014B 143,118,338 125,701,219 17,417,119 7,455,266 2.34 Utility Revenue Bonds Series 2014 and 2015 164,070,328 97,069,562 67,000,766 6,954,274 9.63 OWRB Series 2005C, 2013 General Sales Revenue Note 164,070,328 97,069,562 67,000,766 6,954,274 9.63



1Excludes depreciation and amortization expense.

167

CITY OF EDMOND, OKLAHOMADEMOGRAPHIC AND ECONOMIC STATISTICS

Last Ten Calendar YearsTABLE 20

Personal Per Capita Median Age Percent with Calendar Income Personal of College Degree School Unemployment

Year Population (1)* (in thousands) (2) Income Population (2) or Higher (5) Enrollment (3) Rate (4)

2007 79,270 2,522,054,320$ 31,816$ 34.8 52 20,272 4.3%

2008 80,364 2,664,789,876 33,159 34.7 48.6 20,786 4.6%

2009 80,535 2,798,349,645 34,747 34.9 51.4 21,358 4.8%

2010 81,395 * 2,712,895,350 33,330 35.0 50.1 21,960 4.2%

2011 81,405 3,157,944,165 38,793 34.2 47.3 22,472 4.0%

2012 83,591 3,327,924,892 39,812 35.2 46.6 23,089 4.4%

2013 84,404 3,217,818,096 38,124 35.0 46.5 23,484 3.7%

2014 85,190 3,319,598,730 38,967 34.9 49.4 23,965 3.5%

2015 87,877 3,715,132,785 40,495 35.7 51.2 24,407 4.4%

2016 89,065 3,783,199,593 42,303 36.1 53.3 24,269 4.1%

Note: Information was unavailable for the cells with N/A .

Sources: (1)

* Based on 2010 Census Bureau data

(2) Edmond Economic Development Authority (EEDA)

(3) Edmond School District

(4) www.bls.gov

(5) Edmond Economic Development Authority (EEDA). Information for previous years not available.

City of Edmond, GIS/Planning Department 2001-2011Based on the American Community Survey Avg HH, and Building Permits to date

168

CITY OF EDMOND, OKLHAOMAPRINCIPAL EMPLOYERS

Current and Ten Years Ago TABLE 21

Employer Product/Business Rank Employees % of Total Rank % of Total

Edmond Public Schools Public Education 1 2,132 37.1% 1 2,807 39.7%

University of Central Oklahoma Higher Education 2 1,073 18.7% 2 1,427 20.2%

City of Edmond Local Municipality 3 635 11.1% 3 726 10.3%

OU Medical Center 1 Hospital 4 510 8.9% 4 400 5.7%

Adfitech Quality Control for Mortgage Industry 6 275 4.8% 5 384 5.4%

Petra Industries Electronic Distribution 7 257 4.5% 6 325 4.6%

INTEGRIS Health Edmond Hospital - - 7 333 4.7%

Mercy Edmond I-35 Clinic and Wellness Center - - 8 316 4.5%

Summit Medical Center Surgical Treatment Center - - 9 191 2.7% Pelco Products Traffic, Decorative, & Utility Hardware 9 147 2.6% 10 170 2.4%

Remy International2 Auto Parts Manufacturing 5 430 7.5% - 0.0%

SSJ Technologies Plastic Card Technologies 10 97 1.7% - -

Cox Communications Communication Services 8 188 3.3% - -

Totals 5,744 100% 7,079 100%

Source: Edmond Economic Development Authority

1Formerly Edmond Medical Center

2Formerly Unit Parts

Employees

2007 2017

169

CITY OF EDMOND, OKLAHOMAFULL-TIME EQUIVALENT BUDGETED CITY GOVERNMENT EMPLOYEES BY FUNCTION/PROGRAM


2008 2009 2010 2011 2012 2013 2014 2015 2016 2017Function/Program

General Government:Managament Services 5 5 5 4 5 5 5 5 6 6City Clerk/Governmental Relations 4 4 4 4 4 4 2 2 2 2Finance 8 8 8 8 8 8 8 8 8 8Treasurer 2 2 2 2 2 2 1 1 1 0Human Resources 7 7 7 7 7 7 6 5 5 7IT 16 16 16 16 16 16 17 17 17 18Legal 8 8 8 8 8 8 8 7 6 7Other 22 24 26 26 26 30 32 32 32 31Engineering 14 14 14 14 14 14 17 18 18 16Planning 6 6 6 6 6 7 7 7 7 6CDBG 1 1 1 1 1 1 1 1 1 1Building 15 15 15 15 15 15 15 16 16 19Community Image 7 7 5 5 5 6 6 9 10 11Convention & Visitors Bureau 2 2 2 2 2 2 2 3 3 4Downtown Community Center 2 2 2 2 2 1 1 1 1 1

Total General Government 119 121 121 120 121 126 128 132 133 137

Public Safety and Judiciary:Police: Officers 114 114 114 114 114 114 114 123 120 120 Civilians 22 22 22 22 22 23 23 25 30 31 Animal Welfare 10 10 10 10 10 9 9 9 7 9Fire: Firefighters & Officers 114 114 115 115 115 115 115 117 117 119 Civilians 6 7 7 7 7 7 10 5 5 5Emergency Management 2 2 2 2 2 2 2 2 2 2Central Communications/EM 24 24 24 24 24 24 24 24 24 26Municipal court 8 8 8 8 8 8 8 8 7 9

Total Public Safety and Judiciary 300 301 302 302 302 302 305 313 312 321

Transportation:Streets 25 25 25 25 25 25 25 25 25 25Traffic 5 5 5 5 5 5 5 6 7 7Public Works Administration 14 14 14 12 12 13 13 12 11 10

44 44 44 42 42 43 43 43 43 42Cultural, Parks and Recreation:

Parks and Recreations 40 41 41 42 42 42 42 42 42 46 Total Cultural, Parks and Recreation 40 41 41 42 42 42 42 42 42 46

Utilities:Electric 48 48 48 48 49 49 49 50 50 49Water 43 42 42 42 42 42 42 44 44 50Solid Waste 21 21 21 21 20 20 20 20 19 22Wastewater 21 21 21 22 22 22 24 22 26 31Drainage 5 5 5 5 5 5 5 5 5 5Utility Customer Service 38 38 38 38 38 39 39 42 43 46Central Warehousing 0 3 3 3 3 3 3 3 3 3

Total Public Works 176 178 178 179 179 180 182 186 190 206

Total Full-Time Budgeted Employees by Function/Program 679 685 686 685 686 693 700 716 720 752

Other includes, Urban Forestry, Vehicle Maintenance, Marketing and Facility MaintenanceSource: City of Edmond Human Resource Dept. NOTE: Data is presented only for years including and subsequent to issuance of GASB 44

Fiscal Year

Fiscal Year

Fiscal Year

Fiscal Year

Fiscal Year

Fiscal Year

Fiscal Year

Fiscal Year

Fiscal Year

Fiscal Year

170

CITY OF EDMOND, OKLAHOMACapital Asset Statistics by Function/Program


FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017

Function/Program

Police: Stations 1 1 1 1 1 1 1 1 1 1 Patrol units 126 138 139 144 147 147 148 152 152 152Fire : Stations 5 5 5 5 5 5 5 5 5 5 Engines 6 6 5 5 5 5 5 5 5 5 Quint 1 1 2 2 2 2 2 2 2 2 Vehicles 26 29 29 29 29 29 35 35 44 44Refuse Collection: Collection trucks 23 23 22 22 25 24 24 24 25 25Streets: Street miles1 618 625 627 627 487 487 494 484* 485 486 Streetlights 4,458 4,463 4,954 5,421 5,542 5,652 6,123 6,190 6,339 6,232 Traffic signals 91 95 96 99 99 99 99 100 99 102Parks and Recreation: Acreage 4,821 4,949 4,960 4,960 4,960 4,960 5,108 5,108 5,108 5,108 Playgrounds 22 23 23 23 23 23 24 24 24 24 Baseball/softball diamonds 24 24 24 24 24 24 31 31 31 31 Soccer/football fields 13 13 16 16 16 16 16 16 16 16 Community Center 1 1 1 1 1 1 1 1 1 1 Pool 1 1 1 1 1 1 1 1 1 1 Golf course 1 1 1 1 1 1 1 1 1 1 Disc Golf courses 3 3 3 3 3 3 3 3 3 3 Splash Pad 1 1 1 1

Public Transportation:2

Buses 3 3 8 8 12 12 12 12 12 12 Trolley 3 3 - 0 0 0 0 0 0 0Cemetery: Plots Maintained3 15,165 15,165 15,165 15,165 15,599 15,599 15,599 15,599 15,654 15,654 Vehicles & Machinery 4 4 4 4 4 4 4 4 4 4Water: Water mains (miles) 474 480 484 493 500 502 507 516 523 526 Fire hydrants 3,982 4,092 4,129 4,315 4,392 4,388 4,473 4659 4827 4879 Storage capacity (thousands of gallons) Clearwells and Tower 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 Arcadia Lake 11,000 11,000 11,000 11,000 11,000 11,000 11,000 11,000 11,000 11,000Wastewater: Sanitary sewers (miles) Force Main 22 22 22 22 22 22 22 22 22 22 Sanitary sewers (miles) Gravity Main 407 413 416 416 423 424 429 431 438 449 Storm sewers (miles) 100 105 107 111 115 118 118 128 133 136 Treatment capacity (thousands of gallons) 9,000 9,000 9,000 9,000 9,000 9,000 9,000 9,000 9,000 9,000

Source: City of Edmond Departments(1) Street miles included private roads for years prior to 2012(2) Edmond's Public Transportation began July, 1, 2009, COTPA owns the buses, Edmond maintains them(3) Amounts have been restated to reflect number of plots maintained* GIS dept updated their way of tracking mileage and counted 1 side of street rather than both sides on a few unmarked streets

171

CITY OF EDMOND, OKLAHOMAOperating Indicators by Function/Program

Last Ten Fiscal Years TABLE 24

Function/Program 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017Police

Physical Arrests 2,364 2,071 2,543 2,658 2,728 2,931 2,336 2,220 2,527 2,966 Parking Violations 1,086 1,643 1,462 1,547 1,230 984 747 1,008 1,063 861

Traffic Violations 19,815 18,821 17,409 17,480 14,196 14,151 13,311 10,751 11,152 11,460 Fire

Emergency Responses 5,020 5,692 5,745 5,890 6,793 5,984 6,810 7,375 8,101 8,188 Fires Extinguished 210 260 238 214 304 223 202 232 259 227 Inspections 883 1,191 1,057 937 1,096 904 1,062 3,144 1,577 1,371

Solid Waste Collection Solid Waste Collected (Tons Per Day) 258 259 255 262 242 218 241 223 196 193

Recyclables Collected (Tons Per Day) 12 11 11 10 8 8 18 24 17 18 Other Public Works

Potholes Repaired: Asphalt Patching (Tons) 261 345 255 218 385 214 320 279 370 653 Concrete Patching (Cubic Yards) 91 106 160 117 140 128 89 73 432 72 Asphalt Repairs (Tons) 4,741 2,364 2,793 2,183 446 1,105 689 619 714 991 Concrete Repairs (Cubic Yards) 477 433 554 510 203 298 281 400 307 277

Parks & RecreationAthletic Field-Agreements EASI (# of Fields Used) 20 20 20 20 20 20 20 20 20 20 Edmond Soccer Club (# of Fields Used) 13 13 16 16 16 16 16 16 16 16 Miracle League of Edmond (# of Fields Used) 1 1 1 1 1 1 1 1 1 1 YMCA (# of Fields Used) 7 7 7 7 7 7 7 7 7 7 Edmond Round Up Arena 1 1 1 1 1 1 1 1 1 1 Edmond Rugby Club (# of Fields Used) 2 2 2 2 2 2 2 2 2 2 Edmond Lacrosse Club (# of Fields Used) 5 5 5 5 4 4 4 4 4 4 B & B Tennis (# of Courts Used) 14 14 14 14 14 14 14 14 14 14

Community Center-MAC Program Participants 844 1,120 2,309 6,525 2,332 4,332 1,570 1,864 4,596 4,596

MAC-Special Event Participants1 10,381 5,419 6,500 4,086 3,338 4,034 2,348 915 5,756 5,756 (MAC-Multi-Use Activity Center) Classes⁴ 3,394 7,058 1,032 1,032 Senior Center-Program Participants 69,361 68,034 60,181 38,772 42,240 42,753 45,256 48,545 51,091 51,091 -Sr. Center Lunch Program 19,726 17,080 11,266 9,486 9,669 9,541 8,618 9,686 9,803 9,803

WaterNew Water Connections 412 264 283 330 491 598 539 589 552 534

Water Main Breaks 60 44 57 73 45 58 53 48 51 56 Average Daily Produced 10,130 10,340 9,440 10,709 11,409 10,712 9,704 10,400 11,497 11,300 (Thousands of Gallons) Peak Daily Produced 19,950 21,910 22,078 21,177 21,906 22,097 19,815 18,400 19,889 19,080

(Thousands of Gallons)Wastewater

Average Daily Sewage Treatment 7,300 6,850 7,180 6,900 7,400 7,000 7,300 7,300 7,680 7,150 (Millions of Gallons)

Transit Citylink Bus Service-Revenue Mileage 0 0 228,920 220,219 279,388 283,188 283,175 271,341 266,060 266,710

Total Route Miles-Trolleys and Broncho2 268,759 269,059 - - - - - - - -

Passengers3 61,089 66,033 109,000 179,220 235,005 265,000 277,475 290,939 274,074 248,738

1 2008, tracking of Progams and Special Events are being tracked separately Source: Various City Departments2 Transit information provided by Metro Transit 2006-20093 Transit Information provided by McDonald Transit & Associates 2010, Edmond's Transit began July 1, 2009⁴Starting with 2014, Class participation has its own category instead of being merged with programs as in the past.

172

CITY OF EDMOND, OKLAHOMACONSTRUCTION PERMITS


Fiscal year Fiscal year

2017 551 174,282,232 2017 52 41,133,2492016 501 175,957,069 2016 68 90,524,8202015 601 192,714,809 2015 45 68,355,5732014 561 174,720,033 2014 39 78,136,8252015 638 193,540,218 2013 33 41,123,8302012 561 174,720,033 2012 39 78,136,8252011 638 193,540,217 2011 33 41,123,830 2010 506 147,731,866 2010 64 181,906,271 2009 337 68,660,592 2009 41 30,497,140

2008 444 144,263,081 2008 77 74,341,194

Source: City of Edmond Public Works Department Fiscal building permit reports

Number of Permits Construction Costs

Number of Permits Construction Cost

Residential Construction Commercial Construction

Number of Permits Construction Cost

0

100

200

300

400

500

600

700

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Building Permit by Fiscal Year

Residential

Commercial

0

20000000

40000000

60000000

80000000

100000000

120000000

140000000

160000000

180000000

200000000

1 2 3 4 5 6 7 8 9 10

Construction Cost by Fiscal Year

Residential

Commercial

173


174

309 N. Bryant Ave. • Edmond, OK 73034 • 405.348.0615 • Fax 405.348.0931 • www.jmacpas.com Member of AICPA and OSCPA

INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS

PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS

To the Honorable Mayor and Members of the City Council of the City of Edmond, Oklahoma

We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the City of Edmond, Oklahoma (the “City”), as of and for the year ended June 30, 2017, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements and have issued our report thereon dated January 19, 2018.

Internal Control over Financial Reporting

In planning and performing our audit of the financial statements, we considered the City’s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or, significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.

Compliance and Other Matters

As part of obtaining reasonable assurance about whether the City’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

Purpose of this Report

The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

January 19, 2018

COMPREHENSIVE ANNUAL FINANCIAL REPORT | 2017 · 2018. 3. 6. · CITY OF EDMOND, OKLAHOMA...

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