CITY OF EDMOND, OKLAHOMA AND ACCOMPANYING INDEPENDENT AUDITOR’S REPORT JUNE 30, 2016 · 2017. 4. 26. · CITY OF EDMOND, OKLAHOMA COMPREHENSIVE ANNUAL FINANCIAL REPORT AND ACCOMPANYING

CITY OF EDMOND, OKLAHOMA

COMPREHENSIVE ANNUAL FINANCIAL REPORT AND ACCOMPANYING INDEPENDENT AUDITOR’S REPORT

FOR THE FISCAL YEAR ENDED

JUNE 30, 2016

Prepared by: Financial Services Department

Ross VanderHamm

Finance Director

CITY OF EDMOND, OKLAHOMA COMPREHENSIVE ANNUAL FINANCIAL REPORT

AND ACCOMPANYING INDEPENDENT AUDITOR’S REPORT For the fiscal year ended June 30, 2016

TABLE OF CONTENTS

i

Page INTRODUCTION SECTION:

Letter of Transmittal 1-9

List of Principal Officials 10

City Governmental Organization Chart 11

Certificate of Achievement for Excellence in Financial Reporting 12

FINANCIAL SECTION:

INDEPENDENT AUDITOR’S REPORT 13-14 MANAGEMENT DISCUSSION AND ANALYSIS 15-28

BASIC FINANCIAL STATEMENTS:

Statement of Net Position 29

Statement of Activities 30

Balance Sheet – Governmental Funds 31-32 Statement of Revenues, Expenditures and Changes In Fund Balance – Governmental Funds 33-34 Statement of Net Position – Proprietary Funds 35 Statement of Revenues, Expenses and Changes In Fund Net Position– Proprietary Funds 36 Statement of Cash Flows – Proprietary Funds 37 Statement of Fiduciary Net Position – Fiduciary Funds 38 Statement of Changes in Fiduciary Net Position – Pension Trust Fund 39

Notes to Basic Financial Statements 40-88



TABLE OF CONTENTS

ii

Page

REQUIRED SUPPLEMENTARY INFORMATION: Budgetary Comparison Schedule –(Non-GAAP Budgetary Basis) - General Fund 90-92 Budgetary Comparison Schedule- (Non-GAAP Budgetary Basis) – Major Special Revenue Funds 93-94

Notes to Budgetary Comparison Schedules 95-96

Schedule of Share of Net Pension Liability – Police Pension & Schedule of City Contributions – Police Pension & Retirement System 97 Schedule of Share of Net Pension Liability – Firefighter’s System & Schedule of City Contributions – Firefighter’s Pension & Retirement 98 Single-Employer Defined Benefit Schedule of Changes in Net Pension Liability and Related Ratios 99 Pension Fund Schedule of City’s Contributions-Last Ten Years 100 Pension Fund Schedule of Investment Returns 101 OPEB Plan Funding Schedule 102

OTHER SUPPLEMENTARY INFORMATION: GENERAL FUND COMBINING SCHEDULES: General Fund Account Descriptions 104 Combining Balance Sheet – General Fund Accounts 105 Combining Schedule of Revenues, Expenditures and Changes in Fund Balance – General Fund Accounts 106 Schedule of Revenues, Expenditures and Changes in Fund Balance Budget and Actual (Non-GAAP Budgetary Basis) – General Fund Accounts 107-108 NONMAJOR GOVERNMENTAL FUNDS: Fund Descriptions 109-110 Combining Balance Sheet – Nonmajor Governmental Funds 111-112 Combining Statement of Revenues, Expenditures and Changes in Fund Balance – Nonmajor Governmental Funds 113-114



TABLE OF CONTENTS

iii

Page Schedule of Revenues, Expenditures and Changes in Fund Balance Budget and Actual (Non-GAAP Budgetary Basis) - Nonmajor Governmental Funds 115-120 Schedule of Revenues, Expenditures and Changes in Fund Balance Budget and Actual (Non-GAAP Budgetary Basis) - Major Governmental Capital Project Funds 121 NONMAJOR ENTERPRISE FUNDS: Fund Descriptions 122 Combining Statement of Net Position – Nonmajor Enterprise Funds 123 Combining Statement of Revenues, Expenses and Changes In Fund Net Position – Nonmajor Enterprise Funds 124 Combining Statement of Cash Flows – Nonmajor Enterprise Funds 125 INTERNAL SERVICE FUNDS: Fund Descriptions 126 Combining Statement of Net Position - Internal Service Funds 127 Combining Statement of Revenues, Expenses and Changes in Fund Net Position – Internal Service Funds 128 Combining Statement of Cash Flows – Internal Service Funds 129

AGENCY FUNDS: Fund Descriptions 130 Combining Statement of Fiduciary Assets and Liabilities - Agency Funds 131 Combining Statement of Changes in Assets and Liabilities - Agency Funds 131 REVENUE BOND/NOTE COVENANT SCHEDULES: Schedule Descriptions 132 Schedule of Revenue Bond/Note Debt Service Coverage 133 Schedule of Reserve Account Balances 134



TABLE OF CONTENTS

iv

Page DISCRETELY PRESENTED COMPONENT UNIT: Fund Description 135 Balance Sheet – Discretely Presented Component Unit 136 Statement of Revenues, Expenditures, and Changes in Fund Balance 137 STATISTICAL SECTION: Table

Statistical Section Narrative 139 Net Position by Component - Last Ten Fiscal Years 1 140

Changes in Net Position - Last Ten Fiscal Years 2 141-142

Fund Balances, Governmental Funds – Last Ten Fiscal Years 3 143

Changes in Fund Balances, Governmental Funds – Last Ten Fiscal Years 4 144

Governmental Activities Tax Revenues by Source – Last Ten Fiscal Years 5 145

Electricity Revenue by Customer Type - Last Nine Fiscal Years 6 146

Top Ten Electric Customers – Last Nine Years 7 147 Electricity Revenue Rate Structure – Last Nine Fiscal Years 8 148-152 Sales Tax Rates of Direct and Overlapping Governments – Last Ten

Fiscal Years 9 153

Taxable Sales by Category - Last Ten Fiscal Years 10 154

Ratio for Outstanding Debt by Type – Last Ten Fiscal Years 11 155 Ratio of Net General Bonded Debt to Assessed Value and Net Bonded Debt per Capita – Last Ten Fiscal Years 12 156 Computation of Direct and Overlapping Debt 13 157 Legal Debt Margin Information – Last Ten Fiscal Years 14 158 The Edmond Public Works Authority Utility Systems Division Pledged Revenue Coverage – Last Ten Fiscal Years 15 159 Demographic and Economic Statistics – Last Ten Calendar Years 16 160 Principal Employers – Current and Ten Years Ago 17 161



TABLE OF CONTENTS

v

STATISTICAL SECTION: Table Page

Full-Time Equivalent City Government Employees by Function/Program – Last Ten Fiscal Years 18 162 Capital Asset Statistics by Function/Program – Last Nine Fiscal Years 19 163 Operating Indicators by Function/Program – Last Nine Fiscal Years 20 164 Construction Permits – Last Ten Fiscal Years 21 165

CITY OF EDMOND, OKLAHOMA ANNUAL FINANCIAL REPORT

June 30, 2016

THIS PAGE INTENTIONALLY LEFT BLANK

March 27, 2017

Honorable Mayor and City Councilmembers

City of Edmond, Oklahoma

Dear Mayor and Councilmembers:

The Comprehensive Annual Financial Report of the City of Edmond (the ”City”) for the year ended June

30, 2016, is hereby submitted as mandated by the city charter and state statutes. The City is required to

publish within six months of the close of each fiscal year a complete set of financial statements presented

in conformance with generally accepted accounting principles (GAAP) and audited in accordance with

generally accepted auditing standards by a firm of licensed certified public accountants.

Responsibility of both the accuracy of the data and the completeness and fairness of the presentation,

including all disclosures, rests with the Financial Services Department of the City. The City has established

a comprehensive internal control framework designed to both protect the City’s assets from loss, theft,

or misuse and to compile sufficient reliable information for the preparation of the City of Edmond’s

financial statements in conformity with GAAP. Since the cost of internal controls should not outweigh the

benefits derived from those controls, the City’s comprehensive framework of internal controls has been

designed to provide reasonable rather than absolute assurance that the financial statements will be free

from material misstatement. We believe the information, as presented, is accurate in all material respects

and is reported in a manner that presents fairly the financial position and results of operations of the

various funds and component units of the City of Edmond. All disclosures necessary to enable the reader

to gain an understanding of the City of Edmond’s activities have been included.

The City’s financial statements have been audited by Arledge & Associates, P.C., a firm of licensed certified

public accountants. The independent audit was conducted to provide reasonable assurance that the

financial statements of the City are free of material misstatement. The independent audit examined, on

a test basis, evidence supporting the amounts and disclosures in the financial statements; assessed the

accounting principles used and estimates made by management, and evaluated the overall financial

statement presentation. Based upon the results of their audit, Arledge & Associates, P.C. rendered

unqualified opinions on all of the City’s opinion units within the financial statements for the year ending

June 30, 2016. An unqualified opinion provides objective confirmation that the City’s financial statements

are fairly presented in conformity with GAAP and free of material misstatement. The independent

auditor’s report is presented as the first component of the financial section of this report.

1

In addition to the independent audit of the financial statements, the City is required to undergo an annual

single audit in conformity with the provisions of the U.S. Office of Management and Budget’s Circular A‐

133, “Audits of States, Local Governments, and Non‐Profit Organizations.” This audit requires the auditor

to report on the government’s internal controls and compliance with legal requirements involved with

the administration of major federal grant awards received by the City. These reports are designed to meet

the special needs of federal grantor agencies and are available in the City of Edmond’s separately issued

Single Audit Report.

Generally accepted accounting principles require City management to provide a narrative introduction,

overview and analysis to accompany the basic financial statements in the form of Management’s

Discussion and Analysis (MD&A). This transmittal letter is designed to complement the MD&A and

should be read in conjunction with it. The City’s MD&A can be found immediately following the report

of the independent auditors.

Edmond is located in the center of Oklahoma and is contiguous with the northern boundary of Oklahoma

City, the capital city of the state and the largest city in Oklahoma. Incorporated in 1890, the City covers

approximately 87 square miles and according to the July 1, 2015 US Census population estimate, there

were 90,062 persons within the City. This is a population increase of 10.7% since 2010. The City features

quiet suburban living with a central business district, major shopping and modern office areas, and a

variety of and spacious residential developments.

Edmond is the sixth‐largest community in Oklahoma but has the third largest public school district in the

state. With over 23,900 public school students, Edmond has had 10 nationally recognized Blue Ribbon

Schools and its public schools are better than 96% of schools in the rest of the state. There are also eight

private schools within the City. Of residents 25‐and‐older, 52.1% have at least a bachelor’s degree,

compared to the typical community of 24%. Two universities have a presence within the community,

University of Central Oklahoma and Oklahoma Christian University, with a combined Fall 2015 enrollment

of 19,497 students. Francis Tuttle Technological College also provides educational and training services in

Edmond.

Edmond has the lowest crime rate, per thousand population, in the Oklahoma City metro area. Crime

rate decreased each year from 2013‐2015. Previous Federal Bureau of Investigation’s (FBI) statistics

ranked Edmond as one of the safest cities in the nation and the safest city in Oklahoma with a population

of more than 75,000. The FBI’s Uniform Crime Report looks at violent crime numbers including murder,

rape, robbery and aggravated assault. In 2013, Edmond ranked in the top 6.31% of the safest reporting

cities in the U.S. with a population above 75,000 for 2013, and it is the safest city in Oklahoma when

compared to the ten largest cities in Oklahoma.

Edmond is the third largest city in the Oklahoma City Metropolitan Statistical Area (MSA). The Oklahoma

City MSA is the 41st largest in the U.S. with an estimated 2015 population of 1,459,758. In 2015, the

Oklahoma City metro benefited from economic diversity that offset employment losses experienced in

the oil and gas sector. Overall, 12,000 jobs were added over prior year, or about 2 percent annual

growth. Unemployment for the metro remained low throughout 2015, ending the year near 3.6%

(November 2015) and Oklahoma City has consistently been among the 10 lowest unemployment large

metros for nearly five years.

2

As a whole, Oklahoma from November 2014 to November 2015 reveals that nonfarm employment was

down 1300 jobs for the state, but up 10,700 jobs in the Oklahoma City metro area. As a whole, Oklahoma

lost 13,000 mining (oil and gas) jobs between November 2014 and November 2015, with about 3000 of

those jobs from the Oklahoma City metro. In 2015, the Oklahoma City metro finished the year with major

employment projects that will affect the future of the region’s economy. These include the acquisition of

158 acres by Tinker Air Force base in Midwest City for a maintenance depot; the initiation of construction

by Boeing for a research and development/laboratory facility; and the opening the new General Electric

Global Research Center.

The City has adopted a charter and operates under a Council‐Manager form of government pursuant to

the charter and is recognized by the International City Management Association and the National League

of Cities. The legislative authority of the City is vested in a five member elected council, consisting of one

council member from each of four wards and the mayor who serves as council member at large. Council

members serve four‐year staggered terms with two council members elected every two years. The Mayor

is elected to serve a two‐year term. The City Council members are also the Trustees of the Edmond Public

Works Authority. The Mayor and Council appoint the City Manager, who as the chief executive officer of

the City is responsible to the Mayor and the City Council for the administration of all City services, including

budget preparation, and employees under a merit plan.

The City provides a wide range of municipal services, including police and fire protection, the construction

and maintenance of highways, streets and other infrastructure, and a multitude of recreational and cultural

events throughout the year. The City also provides electric, water, wastewater, drainage, and solid waste

services to its residents under the legal entity of the Edmond Public Works Authority (EPWA). EPWA is a

public trust created under applicable Oklahoma statutes on October 6, 1970, with the City named as the

beneficiary thereof. These utility systems operate for the benefit of the City of Edmond and are an integral

part of City operations. Electric rates were increased an average of 2.5%, effective November 2015. Water

and Wastewater rates also rose in 2016 as part of a long term plan to provide funding for system

improvements – including major plant expansion projects for the utilities. EPWA’s financial statements are

blended into the City’s financial statements and together they comprise the City’s primary financial

presentation. The City is also financially accountable for a legally separate economic development

authority and a legally separate historic preservation trust. Both of these operations are reported

separately within the City’s financial statements. Additional information on these operations may be found

in Note 1.A in the notes to the financial statements.

Five‐year strategic business plans and operating budgets developed to support those plans serve as the

foundation for the City’s financial planning and control. The City Manager issues corporate guidelines that

establish priorities and specific economic factors for the upcoming budget year. Budgets are then

developed by departments for all five years. The City Manager’s recommended budget is required to be

submitted to the City Council by June 1. The City Council must hold a public hearing on the budget by June

15 and adopt the budget at least seven days prior to July 1, which is the beginning of the new fiscal year.

The appropriated budget is prepared by fund, department, and object level/category.

Department Heads may make transfers of appropriations within an expenditure object category. Transfers

between expenditure object categories of a department or fund and budget supplements must be

approved by the City Council. Supplemental appropriations must also be filed with the Office of the State

Auditor and Inspector.

3

General Fund's FY 16‐17 Budgeted 2% Sales Tax is $34,072,793

Fire, 30 %, General Fund,

$10,221,838 33.2%,

$11,312,167

Police, 36.8%, $12,538,788

Sales Tax and the Local Economy

Edmond continued to show annual positive growth in base sales tax collections since FY09‐10. After an

increase of 4.3% in collections from FY13‐14 to FY14‐15, the increase in growth was 0.69% in FY15‐16 from

the previous budget year sales tax revenue.

Typically, sales tax collections account for around 60% of General Fund revenues. However, due to the

voter‐approved 2000 Sales Tax initiative, Public Safety (i.e. Fire and Police) Departments receive over 66%

of the revenue from the 2% General Fund sales tax.

In April 2012, a half‐cent sales tax increase to build a $25.5 million Public Safety Center was approved with

73% of the voters approving the tax for a five year period. Upon expiration of the tax issue on March 30,

2017, the tax will have collected a projected $41 million. Any remaining funds will be utilized for capital

projects, as outlined in the approved ballot question.

Police, .125 of the 3.75 or 3.3%

3.75 % Sales Tax SplitPublic Safety,

0.50 of the 3.75 or 13.3%

Fire, .25 of the 3.75 or 6.7%

CIP, .75 of the 3.75 or 20%

General Fund,2.00 of the 3.75

or 53.3%

Park, .125 of the 3.75 or 3.3%

4

In April 2016, Edmond voters overwhelmingly approved two sales tax extensions for ten additional years

upon expiration of the existing taxes. The one‐cent General Fund sales tax extension won with a vote of 4,894

to 1,214, or 80.1% approval rate. The one‐cent tax rate is for the operations of the city and was originally

approved in April 1977. The taxes have been extended by election for an additional ten‐year term and will

not expire until April 2027.

The half‐cent sales tax originally approved for the Public Safety Center was also extended during the April

2016 election. The renewed half‐cent tax will be utilized for capital improvements. The half‐cent extension

won with a vote of 4,363 to 1,621, or 72.9% approval rate. Even with these renewed tax rates, Edmond’s

sales tax will remain lower than the sales tax rates of neighboring communities.

Edmond continues to experience a growth in both commercial and residential building. Commercial

construction increased dramatically in 2016, with 74 permits issued for new commercial facilities, an increase

over 42 in 2015 and 50 in 2014. The value of the commercial permits in 2016 was

$109,419,000, an increase of over $75 million from the previous year. In fact, the value of commercial

permits in 2016 exceeded the combined value of new commercial permits from the previous two years.

Recent commercial developments included the construction of Campbell Corner, a 15,584 square foot retail

center in downtown Edmond and also a multimillion dollar renovation of Bryant Square Shopping Center at

the southeast corner of Bryant and Second Street. The goal is to attract a higher quality tenant to establish

business in a higher upscale property.

15

9.68 10

14.81

12.04

7.98 9.92 12.67

5.48 7.58 8.68

6.38

4 63 5.94 6.44

3.5

2.7 4.3

‐5 0.69

‐10

‐5.49

5

Single family residential housing permits for new construction dipped again in 2016, down to 415, a decline

of 128 in new homes from 2015. The total value of permits for new home construction in 2016 was

$142,220,635, with per home value of more than $340,000 per unit.

Capital Improvements

This fund is the main source of financing for major capital improvements in Edmond. Voter authorized in

1996 and then extended indefinitely in 2000, this three‐quarter percent tax has raised annually over $12.6

million. Although in excess of $100 million in bond financing has been backed by this fund, at the end of

June 2015, the outstanding principal remaining on the 2000 CIP indebtedness had fallen to $62,153,107.

The final maturity on the most recent issue is July 1, 2026.

During the past 15 years, approximately $170,000,000 in projects have been constructed. Previous

projects completed include the development of the Mitch Park YMCA/Edmond Public Schools Competitive

Pool, the Kelly Street Widening from Covell to Coffee Creek and Edmond Park 66, an adult softball complex.

Recent projects include Phase I on Covell, from Fairfax Boulevard to I‐35, began in 2015 and should be

completed in 2017. This project complements interchange work that has facilitated the construction of a

Hotel/Conference Center (HCC). Roadway improvements will be completed prior to the opening of the

HCC. The anticipated development on the two northern corners of I‐35 and Covell represent the largest

investment by the City in an economic development project. Edmond committed a total of $11 million

from the CIP Fund for a variety of projects for the development corridor, including the purchase of the

land for the HCC on the northwest corner; land on the northeast corner for a proposed indoor sports

complex; infrastructure improvements to serve development west of the interchange and provide

financial assistance for construction of the Conference Center. The development addresses many needs

as identified by the community. The approved development agreement provides 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 facility. This initiative should stimulate significant visitor traffic to Edmond

and the corridor improvements will provide development sites for new commercial and retail

opportunities along the I‐35 corridor.

465

Single Family Residential BuildingPermitsCalendar Year

800

700

600

500

400

300

200

100

649 694

545 585 581 588 564 543

338379

415

297238

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

6

Edmond has implemented the most extensive Intelligent Traffic System (ITS) in Oklahoma. The City will

continue to develop the network through multi‐year CIP funding to improve traffic flow through the

installation of continuous communication devices at high traffic intersections and controlled through a

central computer system. The City has received financial assistance from Oklahoma Department of

Transportation (ODOT) for the implementation of ITS.

Traffic issues are the number one priority for the City, based upon citizen survey results. Many of the CIP

selected projects address traffic issues, including the addition of turn lanes at 33rd and Broadway, plus

turn lanes on Covell at both Santa Fe and Bryant. Covell improvements will continued to be phased into

maximize funding from ODOT and as CIP funding is sufficient to continue improvements.

Annually, the City utilizes CIP funding for the Street Overlay Program, which resurfaces and rehabilitates

local streets. The annual CIP appropriation for the Overlay Program is approximately $2.1 million per year.

With the expiration of the half‐cent Public Safety Center tax in April 2017 and the repurposing of the tax

by the voters for ten years, the City will have an additional $8 million annually in sales tax revenues to

support capital improvements.

Risk Management Program

Safety and accountability are the responsibility of each department and overseen by the Risk Manager.

The City is currently contracting with a third party administrator, CCMSI to process the City’s workers’

compensation claims. Alteris Insurance Services provides general liability insurance coverage and the City

has CCMSI, a third party administrator, manage the liability claims. The Beckman Insurance Company is

the City of Edmond’s insurance broker obtaining and placement of applicable insurance coverage. The

City of Edmond is self‐insured for workers’ compensation with excess coverage provided by Midwest

Employees Casualty Company. Additional information on Risk Management may be found in Note 4.B in

the notes to the financial statements.

The City’s actuary has determined that the estimated claim reported losses as of June 30, 2016 for

worker’s compensation was $319,214, compared to $1,117,469 for the same period for FY14‐15, or a

decrease of $798,255. Reported claims on Automobile and General Liability for FY15‐16 was $217,656,

compared to $167,343 for the same period for FY15‐16, or an increase of $50,313.

7

Edmond's Workers Comp & Tort Claim History

$3,000,000

$2,500,000

$2,000,000

$1,500,000

$1,000,000

$0 FY06‐ 07

FY07‐ 08

FY08‐ 09

FY09‐ 10

FY10‐ 11

FY11‐ 12

FY12‐ 13

FY13‐ 14

FY14‐ 15

FY15‐ 16

Tort Claims 632,00 586,00 684,00 638,00 751,00 747,00 771,00 1,120, 1,081, 1,081,

Work Comp 631,00 562,00 794,00 926,00 1,336, 1,264, 1,213, 1,325, 1,656, 1,535,

Employee Retirement Plan

As of June 30, 2016, the assets of the Employees’ Defined Benefit Pension Plan for non‐uniformed

employees posted an investment loss of ($1,214,734) for an ending market value of $62,768,138. The

investment returns for the calendar year of 2015 were (‐7.78%) compared to the benchmark of (‐7.76%).

The year‐to‐date investment returns as of June 30, 2016 was 6.18% compared to the benchmark of 6.77%.

Compared to the previous fiscal year the employee and employer contributions to the Plan increased

$245,319 or 7%, the contributions and interest paid to terminated employees increased by approximately

$224,210 or 20%, while benefit payments to retirees increased by approximately

$275.421 or 14%.

Employees' Retirement Plan Assets History $70,000,000 $66,047,870

$60,000,000 $63,695,635

$62,674,976

$50,000,000

$40,000,000

$42,330,852$41,041,307

$34,747,236

$49,848,886 $56,663,891$50,874,309

$31,523,323 $40,004,670

$34,598,761$30,000,000

$20,000,000

$10,000,000

$0

2005 2006 2007 2008

2009 2010 2011 2012

2013 2014 2015 2016

8

The City also participates in the Oklahoma Police Pension Retirement Fund and the Oklahoma Firefighters

Pension and Retirement Fund on behalf of the City’s police and firefighters. These are statewide plans

managed by the State of Oklahoma. Based upon certain wages defined by each plan, the Police

contribution rates are 8% employee and 13% employer; the Fire contribution rates are 9% employee and

14% employer. The City has no obligation in connection with employee benefits offered through these

plans beyond the stated above. Additional information on these retirement plans may be found in the

notes to financial statements 4.A.

The City provides retiring employees the opportunity to continue the City’s health and dental insurance

coverage at their expense if so elected at time of retirement. At the end of the fiscal year, 49 of the City’s

128 retired employees maintained City coverage. As such, this creates an OPEB obligation to the City since

premiums are not adjusted for retirees. GASB Statement 45 – Accounting and Financial Reporting for

Employers for Post‐employment Benefits Other than Pensions (OPEB) was implemented in the City’s

FY2009 annual financial report. This being the eighth year to recognize the impact this has on the City’s

finances, the City’s unfunded liability has increased 18% from $2,670,528 to $3,148.17. This is a growing

liability that will need to be addressed on how to continue to fund the recording of benefits over an

employee’s working career rather than when the benefits are paid long after an employee retires as

required by GASB Statement 45.

The Government Finance Officers Association of the United States and Canada (GFOA) awarded a

Certificate of Achievement for Excellence in Financial Reporting to the City of Edmond for its

Comprehensive Annual Financial Report (CAFR) for the fiscal year ended June 30, 2014. The Certificate

of Achievement is a prestigious national award‐recognizing conformance with the highest standards for

preparation of state and local government financial reports and the City of Edmond has been awarded a

Certificate of Achievement for the last thirty consecutive years, ending June 30, 1986‐2015. With

transparency and accountability critical to the City’s mission, the City also received its third consecutive

Award for Outstanding Achievement in Popular Annual Financial Reporting (PAFR) called the “Citizens

Report”. We believe the current report conforms to the Certificate of Achievement program

requirements, and are submitting it to GFOA.

Sincerely,

Larry Stevens Warren Porter

City Manager Acting Finance Director

9

CITY OF EDMOND, OKLAHOMA PRINCIPAL OFFICIALS AND FINANCE COMMITTEE MEMBERS JUNE 30, 2016 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 Doug Hall Fire Chief Bob Ricks Police Chief Lisa Goodpasture Human Resource Director Diane L. Slayton Municipal Judge

ACCOUNTING AND TREASURER STAFF

Ross VanderHamm Finance Director Kelly Neal Assistant Finance Director Sheila Briesch Accounting Manager Terri McKay Payroll Manager Brenda Mayer Purchasing Manager

10

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12

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, 2016, 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, 2016, 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 13

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 March 22, 2017, 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.

March 22, 2017

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CITY OF EDMOND, OKLAHOMA MANAGEMENT’S DISCUSSION & ANALYSIS

June 30, 2016 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, 2016. Please read it in conjunction with the City’s financial statements, which follow this section. FINANCIAL HIGHLIGHTS

For the fiscal year ended June 30, 2016, the City’s total net position increased by $56.1 million.

The City recorded derivative instruments of $1,774,843 and $680,558 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 $51,230,280 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 $82.7 million and were funded by program revenues of $25.7 million and further funded with taxes and other general revenues and transfers that totaled $72.9 million.

In the City’s business-type activities, such as utilities, lake, golf course, and transportation operations; program revenues exceeded expenses by $38.6 million.

Sales and use taxes increased by $2.6 million from the prior fiscal year. This translates into an increase in taxable sales of $69 million from the prior year.

At June 30, 2016, the General Fund reported an unassigned fund balance of $3.143 million. For budgetary reporting purposes, the General Fund and major special revenue funds reported

actual revenues above estimates of $.5 million or .6%, while expenditures were under the final appropriations by $3.2 million or 5.9%. 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, 2016 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, 2016 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 $600,605,174 at the close of the most recent fiscal year.

TABLE 1

NET POSITION (In Thousands)

% Inc.

(Dec.)

% Inc.

(Dec.)

% Inc.

(Dec.)

2016 2015 2016 2015 2016 2015

Current assets 95,399$ 104,320$ ‐9% 141,103$ 110,575$ 28% 236,502$ 214,895$ 10%

Capital assets, net 313,579 299,578 5% 232,725 224,864 3% 546,304 524,442 4%

Other non‐current assets 9,801 10,871 ‐10% 4,068 4,109 ‐1% 13,869 14,980 ‐7%

Total assets 418,779 414,769 1% 377,896 339,548 11% 796,675 754,317 6%

Deferred Outflows 9,670 6,690 2,612 1,578 12,282 8,268

Current liabilities 27,430 28,822 ‐5% 20,384 16,470 24% 47,814 45,292 6%

Non‐current liabilities 108,194 107,666 0% 45,830 49,625 ‐8% 154,024 157,291 ‐2%

Total liabilities 135,624 136,488 ‐1% 66,214 66,095 0% 201,838 202,583 0%

Deferred Inflows 5,808 13,816 ‐58% 706 1,643 ‐57% 6,514 15,459 ‐58%

Net position

Net investment in

capital assets 255,087 250,996 2% 186,486 178,129 5% 441,573 429,125 3%

Restricted 62,143 72,919 ‐15% 11,122 10,164 9% 73,265 83,083 ‐12%

Unrestricted (deficit) (30,213) (52,759) ‐43% 115,980 85,095 36% 85,767 32,336 165%

Total net position 287,017$ 271,156$ 6% 313,588$ 273,388$ 15% 600,605$ 544,544$ 10%

Governmental Activities Business‐Type Activities Total

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June 30, 2016

$179,385

$206,411 $221,573

$241,069 $229,167 $235,828

$248,599

$273,750

$294,918

$271,156 $287,017

$139,959

$173,245 $184,814

$201,953 $192,594

$202,648 $214,648

$229,461 $244,283

$273,388

$313,588

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

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 2016, this investment in capital assets, net of related debt amounted to $441,572,979. 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, $73,265,628, also represents resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted net position, $85,766,580, 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, 2016, net position of the primary government changed as follows:

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June 30, 2016

TABLE 2

CHANGES IN NET POSITION (In Thousands)

% Inc.

(Dec.)

% Inc.

(Dec.)

% Inc.

(Dec.)

2016 2015 2016 2015 2016 2015

Revenues

Program revenue:

Charges for service 9,504$ 10,588$ ‐10% 144,829$ 136,963$ 6% 154,333$ 147,551$ 5%

Operating grants and contributions 6,040 5,867 3% 309 259 19% 6,349 6,126 4%

Capital grants and contributions 10,190 10,227 0% 6,493 8,610 ‐25% 16,683 18,837 ‐11%

General Revenue:

Taxes 70,528 70,046 1% ‐ ‐ 0% 70,528 70,046 1%

Intergovernmental revenue 1,061 1,158 ‐8% ‐ ‐ 0% 1,061 1,158 ‐8%

Investment income 933 815 14% 917 659 39% 1,850 1,474 26%

Miscellaneous 1,016 728 40% ‐ 171 ‐100% 1,016 899 13%

Total Revenues 99,272 99,429 0% 152,548 146,662 4% 251,820 246,091 2%

Expenses

General Government 9,167 6,284 46% ‐ ‐ 9,167 6,284 46%

Public Safety 47,309 43,371 9% ‐ ‐ 47,309 43,371 9%

Streets & highways 15,152 13,111 16% ‐ ‐ 15,152 13,111 16%

Culture, parks and recreation 7,068 8,532 ‐17% ‐ ‐ 7,068 8,532 ‐17%

Health and welfare 1,639 1,510 9% ‐ ‐ 1,639 1,510 9%

Economic development 577 644 ‐10% ‐ ‐ 577 644 ‐10%

Interest on long‐term debt 1,829 1,527 20% ‐ ‐ 1,829 1,527 20%

Electric ‐ ‐ 75,313 75,458 0% 75,313 75,458 0%

Water ‐ ‐ 17,495 19,839 ‐12% 17,495 19,839 ‐12%

Wastewater ‐ ‐ 7,224 7,139 1% 7,224 7,139 1%

Sanitation ‐ ‐ 7,052 6,876 3% 7,052 6,876 3%

Lake ‐ ‐ 1,365 1,351 1% 1,365 1,351 1%

Drainage ‐ ‐ 903 917 ‐2% 903 917 ‐2%

Golf Course ‐ ‐ 2,319 2,079 12% 2,319 2,079 12%

Cooperative purchasing service ‐ ‐ 50 63 ‐21% 50 63 ‐21%

Transportation operations ‐ ‐ 1,297 1,594 ‐19% 1,297 1,594 ‐19%

Total Expenses 82,741 74,979 10% 113,018 115,316 ‐2% 195,759 190,295 3%

Excess (deficiency) before transfers 16,531 24,450 ‐32% 39,530 31,346 26% 56,061 55,796 0%

Transfers (670) 501 ‐234% 670 (501) ‐234% ‐ ‐ ‐

Increase in net position 15,861 24,951 ‐36% 40,200 30,845 30% 56,061 55,796 0%

Beginning net position 271,156 246,205 273,388 242,543 544,544 488,748

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


The City’s governmental activities’ increase in net position of $15.9 million represents an 36% decrease from the prior year’s change in net position and is primarily the result of increased expenses related to pension expense. The business-type activities’ increase in net position of $40.2 million represents a 30% increase from the prior year’s change in net position which is largely attributable to the increase increased rates fees and less transfers out along with expenses staying in line with prior year. The results indicate the City, as a whole, increased in total net position of $56.1 million is 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, 2016 For the year ended June 30, 2016, the City’s governmental activities were funded as follows:

For the year ended June 30, 2016, total expenses for governmental activities amounted to $82.7 million. Of these total expenses, taxes and other general revenues funded $73.5 million, while those directly benefiting from the program funded $16.2 million in grants and other contributions and $9.5 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 pension expense.

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

68%3%

10%

16%

3%

Governmental Activities Sources

Sales Tax

Other Taxes

Charges for Service

Grants

Other

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June 30, 2016 Governmental-type Activities

TABLE 3

% Inc.

(Dec.)

% Inc.

(Dec.)

2016 2015 2016 2015

General Government 9,167$ 6,285$ 46% (1,456)$ 1,661$ ‐188%

Public Safety 47,309 43,371 9% (41,308) (37,949) 9%

Streets & Highways 15,152 13,111 16% (4,214) (1,478) 185%

Culture, parks and recreation 7,068 8,532 ‐17% (6,854) (8,051) ‐15%

Health and Welfare 1,639 1,511 8% (769) (593) 30%

Economic Development 577 644 ‐10% (577) (360) 60%

Interest on long‐term debt 1,829 1,527 20% (1,829) (1,527) 20%

TOTAL 82,741$ 74,981$ 10% (57,007)$ (48,297)$ 18%

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.)

2016 2015 2016 2015

Electric 75,313$ 75,458$ 0% 16,936$ 12,311$ 38%

Water 17,495 19,839 ‐12% 10,737 7,287 47%

Wastewater 7,224 7,139 1% 9,011 9,249 ‐3%

Sanitation 7,052 6,876 3% 2,076 2,080 0%

Lake 1,365 1,351 1% (286) (409) ‐30%

Drainage 903 916 ‐1% 973 1,148 ‐15%

Golf 2,319 2,079 12% (284) (55) 416%

Cooperative purchasing services 50 64 ‐22% 14 26 ‐46%

Transportation 1,297 1,594 ‐19% (564) (1,122) ‐50%

TOTAL 113,018$ 115,316$ ‐2% 38,613$ 30,515$ 27%

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 $38.6 million for the year ended June 30, 2016.

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June 30, 2016

All individual activities reported net revenue for the year ended June 30, 2016 with the exception of lake, golf and transportation operations.

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

A FINANCIAL ANALYSIS OF THE CITY’S FUNDS As the City completed its 2016 fiscal year, the governmental funds reported a combined fund balance of $70.27 million or a 9.6% decrease from 2015. The enterprise funds reported combined net position of $305.8 million or a 14.8% increase from 2015. The fund balance constraints and net position restrictions are listed below:

Governmental Funds:

Fund Balance:

Restricted 62,131,249$

Committed 8,902

Assigned 6,988,723

Unassigned 1,143,526

Total Fund Balance Constraints 70,272,400$

Enterprise Funds:

Net Position Restrictions:

Restricted for debt service 11,120,764$

Restricted for scholarships 1,301

Total Enterprise Fund Net Position Restrictions 11,122,065$

Other fund highlights include:

For the year ended June 30, 2016, the General Fund’s total fund balance decreased by $3,966,012 due to increased expenditures associated with street projects and the transfers out to the Police and Fire Fund as required by ordinance.

The 2000 Capital Improvement Tax Fund’s total fund balance decreased by $2,764,571 due to reduced intergovernmental revenues and an increased interfund transfers out.

The Fire Public Safety Limited Tax Fund’s total fund balance increased by $630,129 due to an increase in fire sales tax collections and transfers from the General Fund.

The Police Public Safety Limited Tax Fund’s total fund balance decreased by $202,326 due to an increase in police sales tax collections and transfers from the General Fund.

All enterprise funds reported an increase in net position, after transfers, for the year ended June 30, 2016 with the exception of golf. In each of the funds mentioned above, charges for services did cover operational cost with the exception of Lake, Golf and City Link Operations.

The employee pension trust fund posted a decrease in net position of the fund of $1.0 million. The decrease is due to a decline in the investment yields in the market and increased benefits paid out to retirees.

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June 30, 2016 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 24% or $12,683,815 due to transfers in. Actual revenues and transfers were above final estimates by $21,286 or .03% which was a result of an increase in transfers in, while expenditures were under final appropriations by $886,092 or 1.3% which is mainly due to reduced operating expenses in general and parks. CAPITAL ASSET AND DEBT ADMINISTRATION Capital Assets At the end of June 30, 2016, the City had $546 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 $21.9 million or 4.17% over last year.

TABLE 5

Primary Government Capital Assets

(In Thousands)

(Net of accumulated depreciation)

2016 2015 2016 2015 2016 2015

Land 15,208$ 15,208$ 2,351$ 2,351$ 17,559$ 17,559$

Buildings 89,469 57,996 21,366 22,203 110,835 80,199

Imp. Other than buildings 12,642 13,038 5,934 5,244 18,576 18,282

Equipment 23,895 22,282 3,679 4,212 27,574 26,494

Intangible water rights ‐ ‐ 14,194 14,838 14,194 14,838

Utility property ‐ ‐ 166,438 167,020 166,438 167,020

Infrastructure 147,510 141,207 ‐ ‐ 147,510 141,207

Construction in progress 24,855 49,846 18,762 8,996 43,617 58,842

Totals 313,579$ 299,577$ 232,724$ 224,864$ 546,303$ 524,441$


This year’s more significant capital asset additions included:

$16.0 million in Street improvement projects $1.4 million in Park improvements $3.6 million in Water Utility improvements $2.8 million in Wastewater Utility improvements $3.3 million in Electric Utility improvements $34.2 million Public Safety improvements

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

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June 30, 2016 Long- Term Debt At year-end, the City had $104 million in long-term debt outstanding which represents a $9.0 million or 8% decrease 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

2016 2015 2016 2015 2016 2015

Accrued absences 3,610$ 3,299$ 719$ 656$ 4,329$ 3,955$ 9%

Revenue bonds 55,788 62,153 28,717 30,444 84,505 92,597 ‐9%

Notes payable ‐ ‐ 14,999 16,275 14,999 16,275 ‐8%

Capital lease ‐ ‐ 39 ‐ 39 ‐

Totals 59,398$ 65,452$ 44,474$ 47,375$ 103,872$ 112,827$ ‐8%

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 January 2017 Economic Report noted the following:

Year-to-date allocations to Oklahoma’s General Revenue Fund (GRF) are below the estimate by $66 million, or 2.7%.

Through December 2016, two of the GRF’s four major revenue streams – net income tax and gross production tax – exceed the estimate. Combined, these income tax and production tax exceeded estimate by $17.5 million.

The primary reason for the underperformance of revenue to the GRF is the sales tax. Allocations for the first six months of the fiscal year are below the estimate by $63 million, or 6.4%.

Motor vehicle collections are also below the estimate by $5.1 million, or 5%. Projections presented to the State Board of Equalization in December 2016 show GRF allocations for the full FY-17 are expected to fail to meet the official estimate by $231.4 million, or 4.4%. December Gross Receipts to the Treasury totaled $901.8 million, while the GRF, as reported by the Office of Management and Enterprise Services, received $419.6 million, or 46.5% of the total. The GRF received between 29.7% and 52.8% of monthly gross receipts during the past 12 months.

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June 30, 2016 From December gross receipts, the GRF received:

Individual income tax: 66.3% Sales tax: 44.0% Gross production – Gas: 65.8% Gross production – Oil: 10.5% Motor vehicle tax: 27.0% Other Sources: 41.4%

December insurance premium taxes totaled $57.7 million, an increase of $6.7 million, or 13.1% over prior year. Tribal gaming fees generated $10.9 million during the month, down by 3.8% from December 2015. Oklahoma unemployment rate shrinks in December 2016 Oklahoma’s seasonally adjusted unemployment rank shrank by 0.1% in December 2016, but still remains above the U.S. jobless rate, according to the Oklahoma Employment Security Commission. The December 2016 rate for unemployment was at its lowest rate since July 2016. Additionally, total employment was higher and the number of unemployed was lower than any month since July 2016. 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 eight consecutive months, through January 2017, the active oil rig count has stayed the same or increased.

Energy. January 2017 active natural gas rig count is at its highest count in eleven months. Employment. Oklahoma County, home of Edmond, unemployment rate was 4.2% in

November 2016. Leading Indicators. Federal Reserve Bank leading index for Oklahoma was at its highest rate

since January 2015, at 0.91%. Regional indicator. Mid-America Business Conditions, released December 28, 2016,

suggested economic conditions are improving in 9 Midwest/Plains states, including Oklahoma. Overall economic index for region jumped to 53.1 in December 2016; from 46.5 in November 2016 and 43.8 in October 2016. A number greater than 50 suggests economic growth; anything less than 50 suggests a decline.

City of Edmond Economic Highlights: Local Sales Tax The City continued to improve its financial condition in its main general revenue source – sales tax. Although establishing another record high collection year, the City’s collections rose by 0.69% from the previous fiscal year for FY15-16. This was the slowest percentage rise since FY09-10. For FY16-17, the City budgeted 0% increase in sales tax collections.

25


June 30, 2016

For the first six months of FY16-17, the City is behind the pace for collections from the previous year. July Aug. Sept. Oct. Nov. Dec. FY15-16 Actuals $2,808,970 3,107,144 2,875,008 2,992,822 2,855,332 2,801,446 FY16-17 Actuals $2,850,337 2,797,317 2,878,584 2,908,956 2,807,417 2,831,641 FY16-17 Actuals Compared $41,367 (309,827) $3,576 (83,866) (47,915) $30,195 To FY15-16 City of Edmond’s FY16-17 Budget The FY16-17 Budget totals $297,708,897, an increase of about 18% ($45 million) which is primarily the result of increased capital expenditures in Water and Wastewater Utility improvements. The City of Edmond begins Phase I of an approximately $300 million in capital improvements to its environmental utilities.

26


June 30, 2016 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.

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 began 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, should be completed by summer 2017. This project includes funding from Oklahoma Department of Transportation (ODOT). This project 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 is under construction with an estimated opening 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.

27


June 30, 2016

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 is the community’s biggest concern. One project has been completed and two additional projects will be completed in 2017. Completed in 2016, with the financial assistance from ODOT, was the turn lane addition at 33rd and Broadway. Construction will be completed in 2017 for additional turn lanes at both Santa Fe and Bryant on Covell.

In FY16-17, Edmond will complete approximately $1.3 million in roadway resurfacing and rehabilitation activities.

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.

28


June 30, 2016

City of Edmond, OklahomaStatement of Net Position

June 30, 2016

Governmental Activities

Business-type Activities Total

Historic Preservation

Trust

Economic Development

AuthorityASSETSCurrent Assets:

Cash and equivalents 9,202,411$ 10,361,841$ 19,564,252$ 92,010$ 288,734$ Investments 69,102,489 88,490,303 157,592,792 - - Restricted assets:

Cash and equivalents 8,543,812 8,145,827 16,689,639 - 41,250 Investments 3,242,517 4,299,507 7,542,024 - -

Accrued interest receivable 151,650 203,390 355,040 - 1,022 Accounts receivable, net of allowance 1,763,792 19,256,448 21,020,240 - - Internal Balances (7,813,421) 7,813,421 - - - Notes receivable - - - - 159,905 Due from other governments 10,307,559 289,890 10,597,449 - - Inventory 898,464 2,242,706 3,141,170 - -

Total Current Assets 95,399,273 141,103,333 236,502,606 92,010 490,911 Non-current Assets:

Restricted assets:Cash and equivalents 1,575,241 1,302,774 2,878,015 - - Investments 6,480,650 2,085,042 8,565,692 - - Derivative instruments 1,744,843 680,558 2,425,401 - -

Capital Assets:Non-depreciable 40,062,861 21,112,584 61,175,445 100,450 - Depreciable, net of depreciation 273,516,066 211,611,876 485,127,942 94,780 9,928 Total Non-current Assets 323,379,661 236,792,834 560,172,495 195,230 9,928

Total Assets 418,778,934 377,896,167 796,675,101 287,240 500,839

DEFERRED OUTFLOWS OF RESOURCESDeferred charge on refunding 1,223,183 704,868 1,928,051 - - Deferred amounts related to pension 8,446,478 1,907,045 10,353,523 - 78,667

Total deferred outflow of resources 9,669,661 2,611,913 12,281,574 - 78,667

LIABILITIESCurrent Liabilities:

Accounts payable and other accrued expenses 5,720,763 9,812,001 15,532,764 - 6,541 Accrued interest payable 1,039,441 598,126 1,637,567 - - Amounts held in escrow 519,166 - 519,166 - - Matured revenue bonds payable 6,499,851 - 6,499,851 - - Meter deposit liability - 4,138,921 4,138,921 - - Unearned revenue 5,680,049 - 5,680,049 - - Current portion:

Capital lease obligations - 6,321 6,321 - - Notes payable - 1,311,102 1,311,102 - - Revenue bonds payable 6,529,309 4,445,695 10,975,004 - - Compensated absences 360,951 71,900 432,851 - 3,178 Estimated liability for claims 1,080,140 - 1,080,140 - -

Total Current Liabilities 27,429,670 20,384,066 47,813,736 - 9,719

Non-current Liabilities:Compensated absences 3,248,555 647,012 3,895,567 - 28,606 Net OPEB obligation 2,451,730 696,450 3,148,180 - - Net pension liability 47,464,225 3,766,055 51,230,280 - 156,709 Capital lease obligations - 32,692 32,692 - - Revenue bonds payable, net 53,186,299 26,999,547 80,185,846 - - Notes payable - 13,688,263 13,688,263 - - Claims and judgments 1,843,046 - 1,843,046 - -

Total Non-current Liabilities 108,193,855 45,830,019 154,023,874 - 185,315

Total Liabilities 135,623,525 66,214,085 201,837,610 - 195,034

DEFERRED INFLOWSAccumulated increase in fair value of hedging derivatives 1,744,843 680,558 2,425,401 - - Deferred amounts related to pensions 4,063,488 24,989 4,088,477 - 1,193

Total deferred inflow of resources 5,808,331 705,547 6,513,878 - 1,193

NET POSITION

Net investment in capital assets 255,086,502 186,486,477 441,572,979 195,230 9,928 Restricted by:

Enabling legislation 8,756,752 - 8,756,752 - 41,250 Statutory requirements 687,438 - 687,438 - - External contracts 52,699,373 11,122,065 63,821,438 - -

Unrestricted (deficit) (30,213,326) 115,979,906 85,766,580 92,010 332,101 Total Net Position 287,016,739$ 313,588,448$ 600,605,187$ 287,240$ 383,279$

See accompanying notes to the basic financial statements.

Component UnitsPrimary Government

29


June 30, 2016

City of Edmond, OklahomaStatement of Activities

For the Year Ended June 30, 2016

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 9,167,431$ 7,259,773$ 376,998$ 75,000$ (1,455,660)$ -$ (1,455,660)$ -$ -$ Public safety 47,309,195 1,188,473 4,812,946 - (41,307,776) - (41,307,776) - - Streets and highways 15,151,636 23,422 813,389 10,100,390 (4,214,435) - (4,214,435) - - Cultural, parks and recreation 7,067,735 161,863 37,068 14,220 (6,854,584) - (6,854,584) - - Health and welfare 1,639,425 869,997 - - (769,428) - (769,428) - - Economic Development 576,728 - - - (576,728) - (576,728) - - Interest on long-term debt 1,828,757 - - - (1,828,757) - (1,828,757) - -

Total governmental activities 82,740,907 9,503,528 6,040,401 10,189,610 (57,007,368) - (57,007,368) - -

Business-type activitiesElectric operations 75,312,602 91,957,403 291,520 - - 16,936,321 16,936,321 - - Water operations 17,495,184 25,066,076 - 3,165,827 - 10,736,719 10,736,719 - - Wastewater operations 7,224,538 13,377,584 1,108 2,857,339 - 9,011,493 9,011,493 - - Sanitation operations 7,052,119 9,128,560 - - - 2,076,441 2,076,441 - - Lake operations 1,364,701 1,078,431 - - - (286,270) (286,270) - - Drainage operations 903,578 1,876,533 - - - 972,955 972,955 - - Golf course operations 2,318,656 2,018,439 16,315 - - (283,902) (283,902) - - Cooperative purchasing services 50,083 63,524 - - - 13,441 13,441 - - Transportation operations 1,296,604 262,869 - 469,482 - (564,253) (564,253) - -

Total business-type activities 113,018,065 144,829,419 308,943 6,492,648 - 38,612,945 38,612,945 - -

Total primary government 195,758,972$ 154,332,947$ 6,349,344$ 16,682,258$ (57,007,368) 38,612,945 (18,394,423) Component Units

Cultural, parks and recreation 53,089$ -$ -$ -$ (53,089) - Economic development 705,789 162,305 - - - (543,484)

Total component units 758,878$ 162,305$ -$ -$ (53,089) (543,484)

General revenues:Taxes:

Sales and use taxes 38,186,535 - 38,186,535 - - Sales and use taxes - Restricted for public safety 6,341,907 - 6,341,907 - - Sales and use taxes - Restricted for park and recreation 2,113,969 - 2,113,969 - - Sales and use taxes - Restricted for capital improvements 21,139,690 - 21,139,690 - - Hotel/motel taxes 464,362 - 464,362 - - Franchise taxes 2,281,490 - 2,281,490 - -

Payment from City of Edmond - - - 25,005 576,728 Grants and contributions not restricted to specific programs 1,060,789 - 1,060,789 - - Unrestricted investment earnings 933,373 917,706 1,851,079 146 4,893 Miscellaneous 1,015,926 - 1,015,926 2,500 -

Transfers (669,672) 669,672 - - - Total general revenues and transfers 72,868,369 1,587,378 74,455,747 27,651 581,621

Change in net position 15,861,001 40,200,323 56,061,324 (25,438) 38,137 Net position - beginning 271,155,738 273,388,125 544,543,863 312,678 345,142

Net position - ending 287,016,739$ 313,588,448$ 600,605,187$ 287,240$ 383,279$


Program RevenueNet (Expense) Revenue and Changes in Net Position

Primary Government

30


June 30, 2016

City of Edmond, OklahomaBalance Sheet

Governmental FundsJune 30, 2016

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 211,034$ 1,188,591$ 769,286$ 12,093,139$ 411,692$ 1,860,728$ 16,534,470$ Investments 2,021,539 10,588,174 7,105,817 27,308,206 3,663,344 4,667,354 55,354,434 Due from other funds 85,708 - - - - - 85,708 Due from other governments 5,684,907 611,477 343,624 1,834,432 1,222,955 392,937 10,090,332 Accrued interest receivable 4,436 23,236 15,594 38,592 8,040 10,243 100,141 Other receivables 1,132,882 - 1,808 - - 237,676 1,372,366

Interfund loan receivable - - - - - 6,881,060 6,881,060 Total assets 9,140,506$ 12,411,478$ 8,236,129$ 41,274,369$ 5,306,031$ 14,049,998$ 90,418,511$

LIABILITIES AND FUND BALANCESLiabilities:

Accounts payable 774,098$ 520,005$ 612,582$ 1,616,489$ 418,384$ 413,403$ 4,354,961$ Due to other funds 18,112 - - - - 87,961 106,073 Interfund loan payable - - - - 6,881,060 - 6,881,060 Unearned revenue 197,070 - - - - - 197,070 Matured interest payable - - - 1,039,441 - - 1,039,441 Matured revenue bonds payable - - - 6,499,851 - - 6,499,851 Amounts held in escrow 519,166 - - - - - 519,166

Total liabilities 1,508,446 520,005 612,582 9,155,781 7,299,444 501,364 19,597,622

DEFERRED INFLOWS OF RESOURCESUnavailable revenue 479,070 13,865 21,619 23,027 4,797 6,111 548,489

Total deferred inflows of resources 479,070 13,865 21,619 23,027 4,797 6,111 548,489

Fund balances:Restricted 2,889,481 11,247,640 6,771,548 29,253,300 - 11,969,280 62,131,249 Committed - - - - - 8,902 8,902 Assigned 1,120,870 629,968 830,380 2,842,261 - 1,565,244 6,988,723 Unassigned 3,142,639 - - - (1,998,210) (903) 1,143,526

Total fund balances 7,152,990 11,877,608 7,601,928 32,095,561 (1,998,210) 13,542,523 70,272,400 Total liabilities and fund balances 9,140,506$ 12,411,478$ 8,236,129$ 41,274,369$ 5,306,031$ 14,049,998$ 90,418,511$


31


June 30, 2016

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

Net PositionJune 30, 2016

Total fund balance, governmental funds 70,272,400$

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 $211,054,730 295,978,081

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 59,751 Other receivables, net of allowance 476,423 Receivable from other governments 12,314 Pension related deferred outflows 5,140,865

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 (55,788,256) Accrued compensated absences (2,609,352) Deferred amount on refunding 1,223,183 Unamortized debt premium (3,927,352) Net pension liability (40,883,824) Pension related deferred inflows (4,052,678) Net OPEB obligation (2,133,215) Advance (5,482,979) Deferred amount related to derivative instrument 1,744,843

Accumulated increase in fair value of hedging derivatives is a deferred inflow (1,744,843)

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 36,542,546 Internal service fund interfund balance resulting from net revenues reported in business-type activities (7,811,168)

Net Position of Governmental Activities in the Statement of Net Assets 287,016,739$


32


June 30, 2016

City of Edmond, OklahomaStatement of Revenues, Expenditures and Changes in Fund Balances

Governmental FundsFor the Year Ended June 30, 2016

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

Funds Total Governmental

Funds REVENUES

Sales and use taxes 38,186,535$ 4,227,938$ 2,113,969$ 12,683,814$ 8,455,876$ 2,113,969$ 67,782,101$ Franchise and public service taxes 2,281,490 - - - - - 2,281,490 Hotel/motel taxes - - - - - 464,362 464,362 Intergovernmental 1,982,590 3,699,634 1,393,242 - - 375,377 7,450,843 Charges for services 5,397,480 12,042 - - - 901,758 6,311,280 Fines and forfeitures 1,641,283 - - - - - 1,641,283 Licenses and permits 1,412,552 - - - - - 1,412,552 Investment income 73,131 98,539 69,311 524,946 34,579 44,800 845,306 Investment earnings on interfund loans - - - - - 85,876 85,876 Miscellaneous 243,355 59,093 340,558 496,341 - 349,580 1,488,927

Total revenues 51,218,416 8,097,246 3,917,080 13,705,101 8,490,455 4,335,722 89,764,020

EXPENDITURESCurrent:

General government 5,252,037 - - 108,302 - 577,196 5,937,535 Public safety 2,988,821 22,087,375 22,603,392 - 1,470,796 31,756 49,182,140 Health and sanitation 647,276 - - - - 737,401 1,384,677 Culture, parks and recreation 3,609,872 - - - - 1,086,260 4,696,132 Economic development 576,728 - - - - - 576,728 Streets and highways 6,354,224 - - - - - 6,354,224 Debt Service: -

Principal - - - 6,364,851 - - 6,364,851 Interest and other charges - - - 2,078,883 85,876 - 2,164,759

Capital Outlay 937,712 587,226 170,528 12,617,636 4,263,492 1,347,859 19,924,453 Total Expenditures 20,366,670 22,674,601 22,773,920 21,169,672 5,820,164 3,780,472 96,585,499

Excess (deficiency) of revenues over expenditures 30,851,746 (14,577,355) (18,856,840) (7,464,571) 2,670,291 555,250 (6,821,479)

OTHER FINANCING SOURCES (USES)Transfers in 13,765,341 15,207,484 18,654,514 4,700,000 - 346,217 52,673,556 Transfers out (48,583,099) - - - (4,700,000) (60,129) (53,343,228)

Total other financing sources and uses (34,817,758) 15,207,484 18,654,514 4,700,000 (4,700,000) 286,088 (669,672) Net change in fund balances (3,966,012) 630,129 (202,326) (2,764,571) (2,029,709) 841,338 (7,491,151)

Fund balances - beginning 11,119,002 11,247,479 7,804,254 34,860,132 31,499 12,701,185 77,763,551

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


33


June 30, 2016


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: (7,491,151)$

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 19,621,586 Capital assets donated 9,667,250 Depreciation expense (14,934,642)

Disposal of capital assets (4,110)

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. 3,374,481

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 501,456

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

Advance 311,830 Grants (24,758) Court 26,792 Interest 2,191

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 6,364,851

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 (267,955) Net OPEB obligation change (204,822)

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 (139,123) Net revenues of internal service funds reported in business-type activities (777,421)

Change in net position of governmental activities 15,861,001$

34


June 30, 2016

City of Edmond, OklahomaStatement of Net Position

Proprietary FundsJune 30, 2016

Edmond Public Works Authority (EPWA)Enterprise Funds

Electric Fund Water FundWastewater

FundOther Enterprise

Funds TotalInternal Service

FundsASSETSCurrent assets:

Cash and cash equivalents 1,915,390$ 4,325,301$ 2,650,979$ 1,470,171$ 10,361,841$ 2,786,994$ Investments 14,297,547 37,878,846 23,791,407 12,522,503 88,490,303 23,471,222 Restricted assets:

Cash and cash equivalents 17,128 7,171,188 - 957,511 8,145,827 - Investments 2,844,480 802,261 328,547 324,219 4,299,507 -

Receivables:Accrued interest receivable 37,445 84,581 53,217 28,147 203,390 51,509 Utility billing, net of allowance for uncollectible accounts 13,791,269 2,771,980 1,402,137 1,171,289 19,136,675 - Due from other governments - 122 - 289,768 289,890 217,227 Other receivables 86,118 - - 33,655 119,773 391,426

Due from other funds 115,281 - - 177,083 292,364 18,112 Inventories 2,167,592 - - 75,114 2,242,706 898,464

Total current assets 35,272,250 53,034,279 28,226,287 17,049,460 133,582,276 27,834,954 Non-current assets:

Restricted assets:Cash and cash equivalents 33,936 1,135,794 - 133,044 1,302,774 - Investments 54,304 1,817,510 - 213,228 2,085,042 - Derivative instruments - 680,558 - - 680,558 -

Capital Assets:Nondepreciable 194,332 7,489,403 12,234,501 1,194,348 21,112,584 787,503 Depreciable, net of accumulated depreciation 45,613,190 99,773,996 53,692,714 12,531,976 211,611,876 16,813,343

Total non-current assets 45,895,762 110,897,261 65,927,215 14,072,596 236,792,834 17,600,846 Total assets 81,168,012 163,931,540 94,153,502 31,122,056 370,375,110 45,435,800

DEFERRED OUTFLOWS OF RESOURCESDeferred charge on refunding 15,499 587,151 14,869 87,349 704,868 - Deferred amounts related to pensions 896,872 328,704 123,227 558,242 1,907,045 3,305,613

Total deferred outflows of resources 912,371 915,855 138,096 645,591 2,611,913 3,305,613


Accounts payable 6,761,509 258,604 1,924,478 492,494 9,437,085 756,625 Salaries payable 155,955 60,578 23,139 135,244 374,916 609,176 Accrued interest payable 11,554 531,543 19,148 35,881 598,126 - Due to other funds - 141,270 131,925 16,916 290,111 - Current portion:

Compensated absences 34,620 10,378 3,029 23,873 71,900 100,016 Capital lease obligation 6,321 - - - 6,321 - Claims and judgments - - - - - 1,080,140 Notes payable - 1,311,102 - - 1,311,102 - Revenue bonds payable 107,297 3,706,653 131,826 499,919 4,445,695 - Meter deposit liability 2,844,108 662,827 328,547 303,439 4,138,921 -

Total current liabilities 9,921,364 6,682,955 2,562,092 1,507,766 20,674,177 2,545,957 Non-current liabilities:

Compensated absences 311,580 93,406 27,262 214,764 647,012 900,138 Claims and judgments - - - - - 1,843,046 Capital lease obligation 32,692 - - - 32,692 - Net OPEB obligation 295,446 135,239 40,632 225,133 696,450 318,515 Net pension liability 1,786,622 636,817 235,194 1,107,422 3,766,055 6,580,401 Notes payable - 13,688,263 - - 13,688,263 - Revenue bonds payable, net 651,674 22,511,221 800,757 3,035,895 26,999,547 -

Total non-current liabilities 3,078,014 37,064,946 1,103,845 4,583,214 45,830,019 9,642,100 Total liabilities 12,999,378 43,747,901 3,665,937 6,090,980 66,504,196 12,188,057

DEFERRED INFLOW OF RESOURCESAccumulated increase in fair value of hedging derivatives - 680,558 - - 680,558 - Deferred amounts related to pensions 20,374 - - 4,615 24,989 10,810

Total deferred inflow of resources 20,374 680,558 - 4,615 705,547 10,810

NET POSITIONNet investment in capital assets 45,025,037 66,633,311 64,550,270 10,277,859 186,486,477 17,600,846 Restricted for debt service 94,186 9,732,383 - 1,294,195 11,120,764 - Restricted for scholarships - - - 1,301 1,301 - Unrestricted 23,941,408 44,053,242 26,075,391 14,098,697 108,168,738 18,941,700

Total net position 69,060,631$ 120,418,936$ 90,625,661$ 25,672,052$ 305,777,280$ 36,542,546$

7,811,168

Total net position per Government-Wide financial statements 313,588,448$


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

35


June 30, 2016

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

Proprietary FundsFor the Year Ended June 30, 2016




Funds TotalInternal Service

FundsOPERATING REVENUES

Charges for services 91,945,112$ 23,665,147$ 12,650,294$ 14,032,877$ 142,293,430$ 44,819,852$ Permits and other fees - 1,234,939 720,850 - 1,955,789 - Operating grants and contributions 2,214 - - 485,797 488,011 1,435,581 Miscellaneous 12,690 165,990 - 395,558 574,238 245,664

Total operating revenues 91,960,016 25,066,076 13,371,144 14,914,232 145,311,468 46,501,097

OPERATING EXPENSESPersonal services 4,848,568 1,823,802 661,787 3,643,862 10,978,019 18,595,868 Materials and supplies 766,437 599,185 504,075 963,347 2,833,044 3,429,018 Wholesale electricity purchases 58,235,292 - - - 58,235,292 - Maintenance, operations and contractual services 8,398,037 7,651,097 3,859,435 8,032,280 27,940,849 13,249,689 Insurance premium expense - - - - - 1,367,548 Claims expense - - - - - 7,876,508 Depreciation 3,034,409 6,662,355 2,380,620 575,963 12,653,347 2,475,311

Total Operating Expenses 75,282,743 16,736,439 7,405,917 13,215,452 112,640,551 46,993,942 Operating income (loss) 16,677,273 8,329,637 5,965,227 1,698,780 32,670,917 (492,845)

NON-OPERATING REVENUES (EXPENSES)Interest and investment revenue 161,689 401,783 231,061 123,173 917,706 220,665 Miscellaneous revenue 288,907 1,108 6,440 - 296,455 187,655 Gain (Loss) on capital asset disposal - - - - - (54,598) Interest expense (20,826) (1,030,197) (32,711) (71,201) (1,154,935) - Miscellaneous expenses - - - (79) (79) -

Total non-operating revenue (expenses) 429,770 (627,306) 204,790 51,893 59,147 353,722 Income (loss) before contributions and transfers 17,107,043 7,702,331 6,170,017 1,750,673 32,730,064 (139,123)

Capital contributions - 3,165,827 2,857,339 - 6,023,166 - Transfers in - 20,386,315 - 1,751,198 22,137,513 - Transfers out (8,365,297) (12,747,807) - (354,737) (21,467,841) -

Change in net position 8,741,746 18,506,666 9,027,356 3,147,134 39,422,902 (139,123) Total net position - beginning 60,318,885 101,912,270 81,598,305 22,524,918 266,354,378 36,681,669 Total net position - ending 69,060,631$ 120,418,936$ 90,625,661$ 25,672,052$ 305,777,280$ 36,542,546$

Change in net position, per above 39,422,902

777,421

Change in Business-Type Activities in Net Position per Government-Wide Financial Statements 40,200,323$

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

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June 30, 2016

City of Edmond, OklahomaStatement of Cash Flows

Proprietary FundsFor the Year Ended June 30, 2016




FundsTotal Enterprise

FundsInternal Service

FundsCASH FLOWS FROM OPERATING ACTIVITIES

Receipts from customers 91,707,820$ 24,838,569$ 13,160,034$ 14,614,902$ 144,321,325$ 46,676,510$ Payments to suppliers (66,639,571) (8,648,933) (2,865,711) (9,732,546) (87,886,761) (16,936,712) Payments to employees (4,679,233) (1,734,008) (633,024) (3,490,339) (10,536,604) (19,049,457) Receipts of customer meter deposits 1,078,467 - - - 1,078,467 - Payment of customer meter deposits (607,548) - - - (607,548) - Claims and judgments paid - - - - - (8,056,853) Interfund payments (1,589,638) - - (222,073) (1,811,711) (6,210) Interfund receipts - 943,914 555,120 364,671 1,863,705 -

Net cash provided by operating activities 19,270,297 15,399,542 10,216,419 1,534,615 46,420,873 2,627,278

CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIESTransfers from other funds - 7,702,500 - 1,751,198 9,453,698 - Transfer to other funds (8,365,297) (63,992) - (354,737) (8,784,026) -

Net cash provided by (used in) noncapital financing activities (8,365,297) 7,638,508 - 1,396,461 669,672 -

CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIESPurchase of capital assets (3,162,841) (2,074,957) (8,265,245) (944,667) (14,447,710) (2,198,229) Proceeds from sale of capital assets - - - - - 17,392 Proceeds from issuance of capital lease - - - - - - Principal paid on capital debt (53,115) (2,718,539) (82,021) (152,855) (3,006,530) - Interest paid on capital debt (27,268) (1,274,707) (39,526) (103,838) (1,445,339) -

Net cash provided by (used in) capital and related financing activities (3,243,224) (6,068,203) (8,386,792) (1,201,360) (18,899,579) (2,180,837)

CASH FLOWS FROM INVESTING ACTIVITIESPurchases of investments (7,255,782) (13,807,195) (2,289,505) (1,912,127) (25,264,609) (2,567,052) Sale of investments - - - 307,238 307,238 1,355,838 Interest and dividends 124,242 314,426 173,399 122,727 734,794 158,495

Net cash provided by (used in) investing activities (7,131,540) (13,492,769) (2,116,106) (1,482,162) (24,222,577) (1,052,719)

Net Increase (decrease) in cash and cash equivalents 530,236 3,477,078 (286,479) 247,554 3,968,389 (606,278)

Balances-beginning of year 1,436,218 9,155,205 2,937,458 2,313,172 15,842,053 3,393,272

Balances-end of year 1,966,454$ 12,632,283$ 2,650,979$ 2,560,726$ 19,810,442$ 2,786,994$

Reconciliation to Combining Statement of Net Position:Cash, including time deposits 1,915,390$ 4,325,301$ 2,650,979$ 1,470,171$ 10,361,841$ 2,786,994$ Restricted cash, including time deposits-current 17,128 7,171,188 - 957,511 8,145,827 - Restricted cash, including time deposits-noncurrent 33,936 1,135,794 - 133,044 1,302,774 -

Total cash and cash equivalents, end of year 1,966,454$ 12,632,283$ 2,650,979$ 2,560,726$ 19,810,442$ 2,786,994$

Reconciliation of Operating Income to Net Cash Provided by Operating Activities:Operating income (loss) 16,677,273$ 8,329,637$ 5,965,227$ 1,698,780$ 32,670,917$ (492,845)$ Adjustments to reconcile operating income (loss) to net cash provided by operating activities:

Depreciation expense 3,034,409 6,662,355 2,380,620 575,963 12,653,347 2,475,311 Miscellaneous non-operating revenue (expense) 288,907 1,108 6,440 (79) 296,376 187,655

Change in assets and liabilities:Receivables, net (504,266) (228,615) (217,550) (9,483) (959,914) - Other receivable (36,837) - - - (36,837) (6,242) Inventories 441,871 - - (280) 441,591 55,881 Due from other governments - - - (117,538) (117,538) (6,000) Due from other funds (115,281) 802,644 423,195 228,937 1,339,495 (6,210) Accounts and other payables 419,528 (357,114) 1,514,150 (650,957) 925,607 320,278 Due to other funds (1,474,357) 141,270 131,925 (86,339) (1,287,501) - Customer meter deposits payable 470,919 - - - 470,919 - Unearned revenue - - - (172,230) (172,230) - Claims liability - - - - - (180,345) Net OPEB obligation 26,940 13,860 4,445 21,577 66,822 119,070 Net Pension liability 29,156 13,195 5,189 19,856 67,396 118,769 Accrued compensated absences 12,035 21,202 2,778 26,408 62,423 41,956

Net cash provided by operating activities 19,270,297$ 15,399,542$ 10,216,419$ 1,534,615$ 46,420,873$ 2,627,278$

Non-cash Activities:Capital assets donated -$ 3,165,827$ 2,857,339$ -$ 6,023,166$ -$ Capital assets from capital lease 42,875 - 42,875 -

Total Non-cash Activities 42,875.00$ 3,165,827$ 2,857,339$ -$ 6,066,041$ -$

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June 30, 2016

City of Edmond, OklahomaStatement of Fiduciary Net Position

Fiduciary FundsJune 30, 2016

Pension Trust Fund Agency Funds

ASSETSCash and cash equivalents 726,849$ $ 653,862 Accrued interest 64,154 -

Total cash and cash equivalents 791,003 653,862 Investments at fair value:

Common stock 1,189,840 - Preferred stock 52,709 - Pooled equity funds 36,525,456 - Pooled fixed income funds 15,938,576 - Alternative-open end mutual funds 8,219,780 - Other assets 21,768 -

Total investments 61,948,129 - Total assets 62,739,132 653,862

LIABILITIES Accounts payable - 18,534 Due to other governments 1,466 21,583 Refunds payable and others - 613,745

Total liabilities 1,466 653,862

NET POSITIONHeld in trust for benefits and other purposes 62,737,666$ -$


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June 30, 2016

City of Edmond, OklahomaStatement of Changes in Fiduciary Net Position

Fiduciary FundsFor the Year Ended June 30, 2016

Pension Trust Fund

ADDITIONSContributions:

Employer 2,292,339$ Plan Members 1,400,380

Total contributions 3,692,719 Investment earnings:

Investment income (loss) (950,822) Investment activity expense (111,096)

Total net investment earnings (1,061,918) Total additions 2,630,801

DEDUCTIONSBenefits 2,289,885 Refunds of contributions 1,319,648 Administrative 20,928 Miscellaneous expense 6,283

Total deductions 3,636,744

Change in net position (1,005,943)

Net position - beginning 63,743,609 Net position - ending 62,737,666$


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June 30, 2016

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 PRONOUNCEMENT NOTE 2. STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY A. DEFICIT FUND BALANCES OR 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

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June 30, 2016

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, theAuthority operates and maintains the City’s golf course facility. Thecurrent City Council serves as the governing body (Trustees) of the EPWA and the city is responsible for daily operations. The City is able to impose its will on the EPWA because, by state law, allEPWA 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, 2016

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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June 30, 2016

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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June 30, 2016

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

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 Nonmajor enterprise funds include:

Sanitation Fund

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June 30, 2016

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, 2016

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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June 30, 2016

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 $5,000. All capital assets are valued at historical cost, or estimated historical cost if actual is unavailable, except for donated capital assets which are recorded at their estimated fair 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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June 30, 2016

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 do 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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June 30, 2016

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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June 30, 2016

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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June 30, 2016

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.

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, and 2015 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, 2026, and 2024 respectively. The total principal and interest payable for the remainder of the life of these bonds is $98,689,367. Pledged sales taxes received in the current year were $12,683,814 for the bonds and the net utility revenues were $47,872,340. Debt service payments for the bonds of $11,308,595 for the current fiscal year were 89% of the pledged sales taxes and 24% of both pledged sales taxes and utility revenues.

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June 30, 2016

Utility Net Revenues Pledge – The City has also pledged future net electric, water, wastewater, and sanitation revenues to repay $43,195,000 of 2014 and 2015 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 2024 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 $63,106,446. 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 $12,683,815 were returned to the General Fund. The debt service payments on the bonds and notes this year were $5,313,989 which was 42% of pledged net utility revenues of $56,423,895 and 9% 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, 2015, the City implemented GASB 72, Fair Value Measurement and Application. The statement required the City to use the following techniques that are appropriate to measure fair value: market approach, cost approach, or the income approach. This statement establishes three hierarchy levels of inputs as to the valuation techniques used to measure fair value. These additional disclosures can be found in Note 3.A. 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, 2016, the City reported a deficit in the 2012 Public Safety Center Tax 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:

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

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June 30, 2016

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 1

through 5 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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June 30, 2016

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, and 2015 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, 2016.

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, 2016.

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June 30, 2016

Fair Value

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

Demand acco unts 8,974,617$ n/a n/a 8,974,617$ -$ -$ -$

Time depo s its 60,960,413 n/a n/a - 32,510,413 28,450,000 -

Mo ney marke t acco unts 31,400,175 ** n/a - 31,400,175 - -

U.S . Treas ury Obliga tio ns 12,055,382 (1) Level I - 7,465,862 4,589,520 -

U.S . Go vernment s po ns o red ente rpris es 100,822,538 (2) Level II - 45,430,380 55,392,158 -

Mutua l Funds -fixed inco me 15,938,576 ** Level I - - - 15,938,576

Sub-to ta l 230,151,701 8,974,617$ 116,806,830$ 88,431,678$ 15,938,576$

Mutua l Funds :

Alte rna tive 8,219,780 n/a Level I

Equity Funds 36,525,456 n/a Level I

Sub-to ta l Mutua l Funds 44,745,236

Co mmo n and prefe rred s to ck 1,242,549 n/a Level I

Other 21,768 n/a n/a

To ta l Inves tments 276,161,254$

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

Cas h and cas h equiva lents 19,564,252$

Inves tments 157,592,792

Current res tric ted cas h and cas h equiva lents 16,689,639

Current res tric ted inves tments 7,542,024

No ncurrent res tric ted cas h and cas h equiva lents 2,878,015

No ncurrent res tric ted inves tments 8,565,692

P ens io n re tirement fund as s e ts 62,674,978

Agency fund cas h and inves tments 653,862

276,161,254$

** 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) AA+ Aaa Federal Agricultural Mortgage Corporation not rated Aa1 (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, 2016

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, 2016, 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, 2016, the City had a total portfolio concentration of credit risk in the following investments: FAMC 2.3%, FFCB 8.8%, FHLB 17.8%, FHLMC 10.8%, FNMA 7.2%.

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 a 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%.

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Asset allocation guidelines for the Plan are as follows:

Class Target Percent June 2016 Present

Fixed Income 29% 28%

Large Cap Equities 15% 19%

Small Cap Equities 5% 6%

International Equities 14% 13%

Emerging Market Equities 9% 12%

Real Estate 9% 7%

Commodities 11% 5%

Master Limited Partnerships 8% 10%

Rate of return. For the year ended June 30, 2016, the annual money-weighted rate of return on pension plan investments, net of pension plan investment expense, was -1.66 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 $288,734 at June 30, 2016 and were properly collateralized. In addition, deposits of the Historical Preservation Trust of $92,010 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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Associated Debt

Effective Date

Termination Date

Contract Interest Rate

Change in Fair Value

Fair Value at June 30, 2016 Counterparty

Credit Rating

Governmental activities:

2010 Sales Tax & Utility Revenue Bonds:

Reserve Fund 5/13/2003 7/1/2021 4.570% (85,651) 558,233 JPMorgan A+




Debt Service 8/24/2004 7/1/2024 4.500% (4,935) 209,441 JPMorgan A+


Total governmental activities: (137,483)$ 1,744,843$

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

Debt Service 8/24/2004 7/1/2024 4.500% (4,446) 188,660 JPMorgan A+


Total business-type activities: (19,144)$ 680,558$

Total (156,627)$ 2,425,401$

Fair value was determined using expected cash flows discounted to the treasury curve at June 30, 2016. Credit risk – The counterparty to the forward sale contract derivative agreements is JPMorgan serving as guarantor. At June 30, 2016, 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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Business-Type Activities:


FundSanitation

Fund Drainage Fund Total

Utilities Receivable 14,733,183$ 2,921,803$ 1,553,998$ 1,030,855$ 250,659$ 20,490,498$

Less:allowance for uncollectible accounts (941,914) (149,823) (151,861) (81,458) (28,767) (1,353,823)

Utilities receivable, net of allowance 13,791,269$ 2,771,980$ 1,402,137$ 949,397$ 221,892$ 19,136,675$

Other Receivables-Business-Type Activities 119,773

Total Accounts Receivable-Business-Type Activities 19,256,448$

Governmental Activities:

Fines ReceivableOther Taxes Receivable

Park & Recreation Receivable

Miscellaneous Receivables Total

Other receivables 1,895,093$ 610,878$ 124,500$ 523,837$ 3,154,308$

Less: allowance for uncollectible accounts (1,390,516) - - - (1,390,516)

Other receivables, net of allowance 504,577$ 610,878$ 124,500$ 523,837$ 1,763,792$

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 8,543,812$ 3,242,517$ 1,575,241$ 6,480,650$ 19,842,220$

Total Governmental Activities 8,543,812$ 3,242,517$ 1,575,241$ 6,480,650$ 19,842,220$

Business-type Activities:

Revenue bond trustee accounts 6,121,903$ -$ 1,302,774$ 2,085,042 9,509,719$

Deposits held for refund - 4,016,642 - - 4,016,642

Deposits held for construction 2,023,924 282,865 - - 2,306,789

Total Business-type Activities 8,145,827$ 4,299,507$ 1,302,774$ 2,085,042$ 15,833,150$

NoncurrentCurrent

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

Current

Cash and cash equivalents, program income 41,250$

Total 41,250$

59


June 30, 2016

3.D. CAPITAL ASSETS Capital asset activity for the fiscal year ended June 30, 2016 was as follows:

Balance a t J uly 1, 2015 Additio ns Deduc tio ns

Balance a t J une 30, 2016

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

No n-depreciable :

Land 15,207,778$ -$ -$ 15,207,778$

Co ns truc tio n-in-pro gres s 51,778,171 25,782,294 (52,705,382) 24,855,083

To ta l no n-deprec iable as s e ts a t his to rica l co s t 66,985,949 25,782,294 (52,705,382) 40,062,861

Deprec iable :

Buildings 75,515,802 34,350,394 - 109,866,196

Impro vements 32,142,898 2,179,997 - 34,322,895

Machinery and equipment 47,399,837 6,602,009 (977,736) 53,024,110

Infras truc ture 292,949,819 15,422,529 - 308,372,348

To ta l deprec iable as s e ts a t his to rica l co s t 448,008,356 58,554,929 (977,736) 505,585,549

Les s accumula ted deprec ia tio n

Buildings (17,294,458) (3,102,111) - (20,396,569)

Impro vements (19,582,694) (2,098,025) - (21,680,719)

Machinery and equipment (26,726,863) (3,159,867) 756,862 (29,129,868)

Infras truc ture (151,812,377) (9,049,950) - (160,862,327)

To ta l accumulated deprec ia tio n (215,416,392) (17,409,953) 756,862 (232,069,483)

Ne t deprec iable as s e ts 232,591,964 41,144,976 (220,874) 273,516,066

Go vernmenta l ac tivities capita l a s s e ts , ne t 299,577,913$ 66,927,270$ (52,926,256)$ 313,578,927$

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

No n-depreciable :

Land 2,350,922$ -$ -$ 2,350,922$

Co ns truc tio n-in-pro gres s 8,995,682 10,816,685 (1,050,705) 18,761,662

To ta l no n-deprec iable as s e ts a t his to rica l co s t 11,346,604 10,816,685 (1,050,705) 21,112,584

Deprec iable :

Buildings 30,782,602 106,966 - 30,889,568

Impro vements 10,962,111 942,971 - 11,905,082

Machinery and equipment 8,963,410 44,302 (10,488) 8,997,224

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

Utility pro perty 304,743,374 9,654,584 - 314,397,958

To ta ls deprec iable as s e ts a t his to rica l co s t 386,406,082 10,748,823 (10,488) 397,144,417

Les s accumula ted deprec ia tio n

Buildings (8,579,440) (944,263) - (9,523,703)

Impro vements (5,718,699) (250,844) - (5,969,543)

Machinery and equipment (4,751,078) (576,599) 9,438 (5,318,239)

Intangible wate r rights (16,116,487) (644,231) - (16,760,718)

Utility pro perty (137,722,928) (10,237,410) - (147,960,338)

To ta l accumula ted deprec ia tio n (172,888,632) (12,653,347) 9,438 (185,532,541)

Ne t deprec iable as s e ts 213,517,450 (1,904,524) (1,050) 211,611,876

Bus ines s -type capita l as s e ts , ne t 224,864,054$ 8,912,161$ (1,051,755)$ 232,724,460$

60


June 30, 2016

Ba lance a t J uly 1, 2015 Additio ns Deduc tio ns

Balance a t J une 30,

2016

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 (177,212) (28,503) - (205,715)

To ta ls accumula ted deprec ia tio n (177,212) (28,503) - (205,715)

Capita l as s e ts , deprec iable ne t 123,283 (28,503) - 94,780

Capita l as s e ts , ne t 223,733$ (28,503)$ - 195,230$

Edmo nd Eco no mic Develo pment Autho rity:

Deprec iable :

Machinery and equipment 46,399$ 2,260$ (7,884)$ 40,775$

To ta ls a t his to rica l co s t 46,399 2,260 (7,884) 40,775

Les s accumula ted deprec ia tio n:

Machinery and equipment (36,115) (2,578) 7,846 (30,847)

To ta l accumula ted deprec ia tio n (36,115) (2,578) 7,846 (30,847)

Capita l as s e ts , ne t 10,284$ (318)$ (38)$ 9,928$

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

Depreciation expense charged to governmental activities:General government 934,170$

Public safety 2,108,756

Streets and highways 9,299,571

Culture and recreation 2,337,397

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 2,475,311

Total governmental activities depreciation expense 17,409,953$

Depreciation expense charged to business-type activities:Electric 3,034,409$

Water 6,662,355

Sanitation 27,318

Wastewater 2,380,620

Arcadia Lake 212,060

Drainage 66,374

Golf Course 270,211

Total business-type activities depreciation expense 12,653,347$

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June 30, 2016

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, 2016, 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 $ 360,951 Non-current portion 3,248,555 Total Accrued Compensated Absences $ 3,609,506

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 $ 7,150,000 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 9,440,000

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 9,925,000 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 10,533,256

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 18,740,000 debt service is currently paid with restricted sale tax.

Total Revenue Bonds Payable 55,788,256 Add: Unamortized Bond Premium 3,927,352 Less: Deferred amount on Refunding (1,223,183) Total Revenue Bonds Payable (Net) $ 58,492,425 Current portion, net $ 6,529,309

Non-current portion, net 53,186,299 Deferred Outflow (1,223,183) Total Revenues Bonds Payable, net $ 58,492,425

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June 30, 2016

Business-type Activities Long-Term Debt As of June 30, 2016, 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. $9,101,894 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. 19,615,000

Total Revenues Bonds Payable 28,716,894 Plus: Unamortized Premium 2,728,348 Deferred amount on refunding (704,868)

Total Revenues Bonds Payable (Net of unamortized discount) $ 30,740,374

Current portion, net $ 4,445,695 Non-current portion, net 26,999,547 Deferred Outflow (704,868) Total Revenues Bonds Payable, net $ 30,740,374

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. $ 1,624,365 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. 13,375,000 $ 14,999,365

Current portion $ 1,311,102 Non-current portion 13,688,263 Total Note Payable $ 14,999,365

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. $ 12,585 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. 14,217 Capital lease with Oklahoma Municipal Power Authority related to Loop Lease Program (Cox), original lease amount of $12,800, payable in monthly installments of $158, interest at 1%, final maturity March 2023. 12,211 $ 39,013

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June 30, 2016

Current portion $ 6,321 Non-current portion 32,692 Total Note Payable $ 39,013

Accrued Compensated Absences:

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

Current portion $ 71,900 Non-current portion 647,012 Total Accrued Compensated Absences $718,912

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, 2016, are as follows:

Current portion $3,178 Non-current portion 28,606 Total Accrued Compensated Absences $31,784

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, 2016:

Balance J uly 1, 2015 Additio ns Deduc tio ns

Ba lance J une 30, 2016

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 62,153,107$ -$ 6,364,851$ 55,788,256$ 6,529,309$

Accrued Co mpens ated Abs ences 3,299,595 2,969,636 2,659,725 3,609,506 360,951

65,452,702$ 2,969,636$ 9,024,576$ 59,397,762$ 6,890,260$

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

No te P ayable 16,275,467$ -$ 1,276,102$ 14,999,365$ 1,311,102$

Capita l Leas e Obliga tio ns P ayable - 42,725 3,712 39,013 6,321

Revenue Bo nds P ayable 30,443,608 - 1,726,714 28,716,894 4,445,695

Accrued Co mpens ated Abs ences 656,489 590,840 528,417 718,912 71,900

47,375,564$ 633,565$ 3,534,945$ 44,474,184$ 5,835,018$

C o m po ne nt Units :

Accrued Co mpens ated Abs ences 32,759$ 24,423$ 25,398$ 31,784$ 3,178$

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, 2016

Debt Service Requirements to Maturity - Primary Government The annual debt service requirements to maturity for long-term debt as of June 30, 2016 are as follows:

Year Ending June 30, Principal Interest

2017 6,529,309$ 1,911,533$

2018 6,776,301 1,732,913

2019 7,035,351 1,496,060

2020 7,277,835 1,249,816

2021 7,542,508 994,638

2022-2026 20,626,952 2,016,039

Total 55,788,256$ 9,400,999$

Revenue Bonds Payable

Governmental-Type Activities

Year Ending June 30, Principal Interest Principal Interest Principal Interest

2017 1,311,102$ 382,583$ 4,445,695 1,181,027 6,321 358

2018 1,341,102 349,368 4,588,607 1,038,249 6,382 297

2019 1,381,102 315,223 2,488,367 881,018 6,448 231

2020 1,411,102 280,019 2,680,235 771,200 6,511 168

2021 1,451,102 243,859 2,799,734 653,138 6,579 100

2022-2026 7,568,855 637,780 11,714,256 1,163,736 6,772 60

2027 535,000 7,651 - - - -

Total 14,999,365$ 2,216,483$ 28,716,894$ 5,688,368$ 39,013$ 1,214$

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, 2016

Primary Government: Utility System Revenue Bonds, Series 1977 $75,000 Utility System Revenue Bonds, Series 2003B 1,055,000 Utility System Revenue Bonds, Series 2004 7,410,000 Sales Tax and Utility Revenue Bonds, Series 2004 10,095,000 Sales Tax and Utility Revenue Bonds, Series 2005 19,880,000 Utility System Revenue Bonds, Series 2005 20,865,000 Total Outstanding Defeased Bonds $59,380,000

65


June 30, 2016

Line of Credit In August 2013, the City entered into an agreement with a local bank to provide an irrevocable line of credit not to exceed $22,000,000 to the City through March 31, 2017. Interest will be calculated at a floating interest rate equal to the 30 day British Bankers Association London Interbank Offered Rate (LIBOR), plus 150 basis points, provided however, that the interest rate shall not exceed the maximum rate as provided for by the laws of the State of Oklahoma. The line of credit was issued to secure funding for the Public Safety Center project. Borrowing under the credit facility is secured by the pledged sales tax. No advances were made under this credit facility. The City simultaneously authorized the issuance of a Sales Tax Revenue Note to the Hospital Trust Fund not to exceed $7,000,000 as authorized by the voters at the time of approval of a half-cent sales tax in October 2011. This is the first form of funding the City will use to fund the Public Safety Center. The City has borrowed $6.881 million of the $7 million available and will pay the entire note with interest at maturity of March 31, 2017. Further disclosure is explained in Note 3.F. 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, 2016:

Outstanding Original Issue June 30, 2016

EEDA - Student Housing Revenue Bonds 2001A (UCO Student Housing Foundation) $8,305,000 $6,520,000

EEDA - Revenue Note 2000 (UCO Music Lab Project)

(UCO Foundation) 1,135,000 582,868 $9,440,000 $7,102,868

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, 2016

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 85,708 85,708 18,112 103,820 Total governmental funds 85,708 - 85,708 18,112 103,820Internal service funds - - - - - Total 85,708 - 85,708 18,112 103,820

Total due from other funds 85,708$ -$ 85,708$ 18,112$ 103,820$

DUE TO O THER FUNDS

Primary GovernmentGovernmental Activities

General -$ 85,708$ 85,708$ -$ 85,708$

Total governmental funds - 85,708 85,708 - 85,708

Internal service funds - - - -

Total governmental activities - 85,708 85,708 - 85,708

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 -$ 87,961$ 87,961$ -$ 87,961$

Reconciliation to Fund Financial Statements:

Due From Other Funds

Due to Other Funds

Net Internal Balances

Governmental Funds 85,708$ 106,073$ (20,365)$

Proprietary Funds 292,364 290,111 2,253

Internal Service Funds 18,112 - 18,112

Total 396,184$ 396,184$ -$

Reconciliation to Statement of Net Position:

Net Internal Balances 2,253$

Internal Service Fund Activity report in BTA 7,811,168

Net Internal Balance 7,813,421$

Reconciliation to fund financial statements:

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June 30, 2016

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 115,281 115,281 PWA-Water - - PWA-Wastewater - - Other enterprise funds 174,830 174,830 Total business-type activit ies 290,111 290,111

Total due from other funds 292,364$ 292,364$

DUE TO O THER FUNDS

Business Type Activities

PWA-Electric - -

PWA-Water 141,270 141,270

PWA-Wastewater 131,925 131,925

Other enterprise funds 16,916 16,916

Total business-type activit ies 290,111 290,111

Total due to other funds 290,111$ 290,111$

Primary GovernmentBusiness-type Activities

Interfund Loan The 2012 Public Safety Center Tax Fund executed a request to borrow funds from the Hospital Trust Fund as authorized by the voters not to exceed $7,000,000 to be paid back with the half-cent sales tax collections. This is recorded in the governmental fund financial statements as interfund loan receivable/payable. The first request was for $5,900,000 in February 2015 and the second amount borrowed was $981,060 for a total of $6,881,060. No principal payments have been made and interest earnings and expense at a rate of 1.2% respectfully for the year was $85,876.

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June 30, 2016

Interfund transfers for the year ended June 30, 2016 were as follows:

Transfer from Transfer to Amount Nature of Interfund Balance

* PWA Electric * General Fund 662,797$ Budgeted annual operating transfer

* PWA Water * General Fund 63,992 Budgeted annual operating transfer

* PWA Water * General Fund 12,683,815 Return of pledged sales tax

PWA Sanitation * General Fund 354,737 Budgeted annual operating transfer

* General Fund * Fire Public Safety Limited Tax 15,207,484 Dedicated sales tax- ordinance

* General Fund * Police Public Safety Limited Tax 18,654,514 Dedicated sales tax- ordinance

* General Fund Capital Improvement Fund 311,000 Budgeted annual funding

* General Fund Art in Public Places 35,217 Funding for public art

* General Fund PWA Arcadia Lake 491,069 Debt service payments

* General Fund Citilink Fund 1,200,000 Budgeted annual operating transfer

* General Fund Kickingbird Golf Course 60,129 Budgeted annual operating transfer

* General Fund * PWA Water 12,683,815 Pledged sales tax- bond indenture

* PWA Water * PWA Electric 7,702,500 Budgeted annual operating transfer

* 2000 Capital Improvement Fund 2012 Public Safety Capital Impr.Fund 4,700,000 To offset negative fund balance

74,811,069$

* Denotes major fund

Reconciliation to fund financial statements:

Transfer to Other Funds

Transfers from Other Funds

Governmental Funds:

General Fund 48,583,099$ 13,765,341$

Fire Public Safety Limited Tax Fund 15,207,484

Police Public Safety Limit Tax Fund - 18,654,514

2000 Capital Improvement Tax Fund - 4,700,000

2012 Public Safety Center Tax Fund 4,700,000 -

Other Governmental Funds 60,129 346,217

Total Governmental Funds 53,343,228 52,673,556

Proprietary Funds:

Enterprise Funds:

Electric 8,365,297 -

Water 12,747,807 20,386,315

Other Enterprise Funds 354,737 1,751,198

Total Enterprise Funds 21,467,841 22,137,513

Totals 74,811,069$ 74,811,069$

Reconciliation to Statement of Activities:

Transfer to Other Funds

Transfer from Other Funds Net Transfers

Net transfers for governmental activit ies:

Governmental Funds (53,343,228)$ 52,673,556$ (669,672)$ Total Net transfers for governmental activit ies (53,343,228)$ 52,673,556$ (669,672)$

Net transfers for business-type activities:

Enterprise Funds (21,467,841)$ 22,137,513$ 669,672$ Total Net transfers for business-type activit ies (21,467,841)$ 22,137,513$ 669,672$

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June 30, 2016

Transfers between the primary government and component units for the year ended June 30, 2016 were as follows:

Transfer From Transfer To Amount Nature of Transfer

General Fund EEDA 576,728$ Operating subsidy

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 8,199,934$

Ambulatory Fund Enabling legislation 556,818 8,756,752$

Asset Forfeiture Statutory requirements 592,818$

Cemetery Care Fund Statutory requirements 94,620 687,438$

General Fund External contracts 2,889,481$

Fire Public Safety Limited Tax Fund External contracts 11,247,640

Police Public Safety Limited Tax Fund External contracts 6,783,862

2000 Capital Improvement Tax Fund External contracts 29,253,300

Senior Center Fund External contracts 238,743

Park Sales Tax Fund External contracts 1,964,251

Art in Public Places Fund External contracts 66,014

Roadway Improvement Fund External contracts 10,199

1996 Capital Improvement Fund External contracts 141,718

Convention and Visitors Bureau Fund External contracts 104,165 52,699,373$

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June 30, 2016

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 -$ -$ 6,771,548$ -$ -$ -$ 6,771,548$

F ire o pera tio ns - 11,247,640 - - - - 11,247,640

Ho s pita l s a le trus t - - - - - 8,199,934 8,199,934

Ambulance s ervices - - - - - 556,818 556,818

Eco no mic deve lo pment - - - - - 104,165 104,165

Capita l impro vements - - - 29,253,300 - 141,718 29,395,018

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

Art in public places - - - - - 66,014 66,014

Culture and rec pro grams - - - - - 1,964,251 1,964,251

Cemete ry impro vements - - - - - 94,620 94,620

Senio r center pro grams - - - - - 238,743 238,743

P o lice -drug pro grams - - - - - 592,818 592,818

J uvenile co urt pro grams 683,776 - - - - - 683,776

S tree t and a lley o pera tio ns 1,876,686 - - - - - 1,876,686

Trans po rta tio n 3,215 - - - - - 3,215

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

Sub-to ta l res tric ted 2,889,481 11,247,640 6,771,548 29,253,300 - 11,969,280 62,131,249

Co mmitted fo r:


Sub-to ta l co mmitted - - - - - 8,902 8,902

As s igned fo r:

Capita l impro vements - - - 2,842,261 - 1,241,599 4,083,860

Culture and rec pro grams 42,081 - - - - 239,537 281,618

Cemete ry impro vements - - - - - 4,256 4,256

Art in public places - - - - - 7,289 7,289

S tree t impro vements - - - - - 817 817

P o lice o pera tio ns - - 830,380 - - - 830,380

F ire o pera tio ns - 629,968 - - - - 629,968

Eco no mic deve lo pment 954,359 - - - - 18,401 972,760

P o lice -drug pro grams - - - - - 31,383 31,383


Ambulance s ervices - - - - - 11,821 11,821

Supplement o f next fis ca l years budget 124,430 - - - - - 124,430

Sub-to ta l a s s igned 1,120,870 629,968 830,380 2,842,261 - 1,565,244 6,988,723

Unas s igned (defic it): 3,142,639 - - - (1,998,210) (903) 1,143,526

TOTAL FUND BALANCE 7,152,990$ 11,877,608$ 7,601,928$ 32,095,561$ (1,998,210)$ 13,542,523$ 70,272,400$

Majo r Go vernmenta l Funds

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June 30, 2016

Prior Period Adjustments The Asset Forfeiture Fund no longer met the definition of a special revenue fund per GASB Statement 54 and was moved to an account of the General Fund. This resulted in beginning fund balance of the General Fund to increase by $153,553 and beginning fund balance of the non-major governmental funds to decrease by $153,553. 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, 2016:

Deferred Outflow Deferred Inflow Net Pension Liability Pension Expense

Police Pension 1,401,329$ 1,212,356$ 127,846$ 495,877$

Fire Pension 2,263,468 2,840,322 37,851,799 3,219,594

Single Employer Plan 6,688,726 35,799 13,407,344 2,508,031

Totals 10,353,523$ 4,088,477$ 51,386,989$ 6,223,502$

Reconciliation to government-wide financials;

Governmental 47,464,225$

Bussiness-type 3,766,055

Component unit 156,709

51,386,989$

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, 2016

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, 2016

Trend Information Oklahoma Police Pension and Retirement System: Contributions to the police pension plan from the City were $1,305,813. The State of Oklahoma also made on-behalf contributions to OPPRS in the amount of $1,209,659 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 $1,112,774. 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 $1,474,042. The State of Oklahoma also made on-behalf contributions to OPPRS in the amount of $3,632,498 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 $3,253,639. 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, 2016, the City reported a liability of $127,846 for its proportionate share of the Police net pension liability. The net pension liability was measured as of June 30, 2015, 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, 2015. Based upon this information, the City’s proportion was 3.1355 percent. For the year ended June 30, 2016, the City recognized pension expense of $495,877. At June 30, 2016, 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 -$ 706,938$

Net difference between projected and actual

earnings on pension plan investments - 491,945

Changes in proportion 95,516 -

City contributions during measurement date - 13,473

City contributions subsequent to the

measure date 1,305,813 -

Total 1,401,329$ 1,212,356$

The $1,305,813 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, 2017. 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, 2016

Year ended June 30:

2017 (505,250)$

2018 (505,250)

2019 (505,250)

2020 439,073

2021 (40,163)

(1,116,840)$

Oklahoma Firefighters Pension and Retirement System: At June 30, 2016, the City reported a net pension liability of $37,851,799 for its proportionate share of the total net pension liability. The net pension liability was measured as of June 30, 2015, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of July 1, 2015. 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, 2015. Based upon this information, the City’s proportion was 3.5662 percent. For the year ended June 30, 2016, the City recognized pension expense of $3,219,594. At June 30, 2016, 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 747,832$ -$


earnings on pension plan investments - 2,821,580

Changes in proportion 41,594 -

City contributions during measurement date - 18,742


measure date 1,474,042 -

Total 2,263,468$ 2,840,322$

The $1,474,042 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, 2017. 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, 2016

Year ended June 30:

2017 (871,273)$

2018 (871,273)

2019 (871,273)

2020 516,541

2021 42,903

thereafter 3,479

(2,050,896)$

Actuarial Assumptions Oklahoma Police Pension and Retirement System: The total pension liability was determined by an actuarial valuation as of July 1, 2015, 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

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, 2015, 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, 2015, are summarized in the following table:

Long-Term Expected

Asset Class Real Rate of Return

Fixed income 2.24%

Domestic equity 4.87%

International equity 7.68%

Real estate 5.47%

Private equity 5.80%

Commodities 2.96%

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June 30, 2016

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. Oklahoma Firefighters Pension and Retirement System: The total pension liability was determined by an actuarial valuation as of July 1, 2015, 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, 2015 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, 2015, are summarized in the following table:

Target Long-Term Expected

Asset Class Allocation Real Rate of Return

Fixed income 20% 5.13%

Domestic equity 37% 8.02%

International equity 20% 9.94%

Real estate 10% 7.47%

Other assets 13% 6.25% 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:

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June 30, 2016

1% Decrease Current Discount 1% Increase

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

Police Pension net pension liability (asset) 7,681,910$ 127,846$ (6,240,755)$

Fire Pension net pension liability 49,146,591$ 37,851,799$ 28,378,805$

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, 2015. The System’s pension liability was based on an actuarial valuation as of June 30, 2015. Pension payments made by the City from the measurement date to June 30, 2016 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, 2016, 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 2016

Plan members 5.25%

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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

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 8.99% of covered payroll to the System, however, the City elected to contribute 8.61% which was the actuarial determined contribution rate from the prior year. These amounts were actuarially determined. System participants of the City contributed $1,384,043 during fiscal year 2016, and the City contributed $2,265,553. The Component Unit (EEDA) is also required to contribute 8.99% of covered payroll to the System. These amounts were actuarially determined. System participants of EEDA contributed $16,337 during fiscal year 2016, and EEDA contributed their portion of $26,794. Plan Membership

Non-vested active members 191 Fully vested active members 270

Total Active members 461 Non-active retired, beneficiaries, disabled and deferred vested participants 169 Total Plan Participants 630

Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions At June 30, 2016, the City reported a liability of $13,250,635 and the EEDA component unit $156,709 for their proportionate share of the net pension liability. The net pension liability was measured as of June 30, 2015, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of July 1, 2015. 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, 2015 and the City’s report ending date of June 30, 2016, that would have had a significant impact on the net pension liability. The following table reports the components of changes in net pension liability:

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June 30, 2016

Total Pension Plan Net Net Pension

Liability Position Liability

Balances at beginning of year, 7/1/2014 71,889,808$ 66,089,862$ 5,799,946$

Changes for the year:

Service cost 2,619,414 - 2,619,414

Interest expense 5,193,616 - 5,193,616

Contributions – employer - 2,108,839 (2,108,839)

Contributions – employee - 1,338,561 (1,338,561)

Net investment income - (2,627,009) 2,627,009

Benefits paid (3,135,897) (3,135,897) -

Difference between actual and expected experience 584,011 - 584,011

Plan administrative expenses - (30,748) 30,748

Net changes 5,261,144 (2,346,254) 7,607,398

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

For the year ended June 30, 2016, the City recognized pension expense of $2,508,031 and EEDA recognized pension expense of $29,452. At June 30, 2016, 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 989,506$ -$ 11,703$ -$


earnings on pension plan investments 3,396,680 - 40,170 -

Change in proportion 36,987 35,799 - 1,193


measure date 2,265,553$ -$ 26,794$ -$

Total 6,688,726$ 35,799$ 78,667$ 1,193$

City Component Unit

The City’s $2,265,553 and EEDA’s $26,794 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, 2017. 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

2017 (825,326)$ (9,553)$

2018 (825,326) (9,553)

2019 (825,326) (9,553)

2020 (1,651,174) (19,320)

2021 (182,618) (1,952)

thereafter (77,604) (749)

(4,387,374)$ (50,680)$

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June 30, 2016

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.

No changes in assumptions were made during fiscal year 2016.

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, 2015, 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%

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June 30, 2016

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 - 2015 24,075,571$ 13,407,344$ 4,546,913$

Employer's Net Pension Liability - 2016 31,333,073$ 19,919,370$ 10,438,994$

The components of the net pension liability of the City June 30, 2015 and 2016, were as follows:

2015 2016

Total Net Pension Liability 77,150,952$ 82,657,036$

Plan fiduciary Net Position 63,743,608 62,737,666

Net Pension Liability 13,407,344$ 19,919,370$

Plan Fiduciary Net Position as a percentage of 82.62% 75.90%

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, 2016, approximately 49 retired employees and 17 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

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June 30, 2016

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 2016, the City contributed $162,326 to the plan. Plan members receiving benefits contributed $341,577, or approximately 62% percent of the value of coverage, through their required contribution of $443.89 per month for retiree-only Standard option coverage and $1,095.62 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 $38.70 for retiree only and $94.07 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 $6.96 for retiree only coverage and $16.87 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, 2016:

Annual required contribution 772,339$

Interest on net OPEB obligation 101,480

Adjustment to annual required contribution (320,778)

Annual OPEB cost (expense) 553,041

Contributions made (162,326)

Increase in net OPEB obligation 390,715

Net OPEB obligation-beginning of year 2,757,465

Net OPEB obligation-end of year 3,148,180$

The City's annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net unfunded OPEB obligation for 2016 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$ 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

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June 30, 2016

payroll of active employees covered by the plan) was $37.5 million, and the ratio of the UAAL to the covered payroll was 14 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. 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 23 years Inflation rate 2.5% Asset valuation method 3.0% (discount rate) Investments return N/A (unfunded) Projected salary increases N/A Cost of living adjustments N/A Healthcare cost trend rate 6.12% in 2016 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 TortClaim 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.

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June 30, 2016

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.

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, 2014 to June 30, 2016, are as follows:

Workers' Compensation Health Care Tort Total

Claim liability, June 30, 2014 1,325,000$ 431,354$ 1,120,000$ 2,876,354$

Claims and changes in estimates 684,568 7,901,956 711,951 9,298,475

Claims payments (928,568) (7,966,779) (175,951) (9,071,298)

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

Claims and changes in estimates 462,328 7,275,964 138,216 7,876,508

Claims payments (463,328) (7,334,309) (259,216) (8,056,853) Claim liability, June 30, 2016 1,080,000$ 308,186$ 1,535,000$ 2,923,186$


Current port ion 1,080,140$

Noncurrent portion 1,843,046

Total 2,923,186$

4.C. COMMITMENTS AND CONTINGENCIES Construction Commitments At June 30, 2016, the City had awarded construction contracts totaling $45,505,978 for various City and EPWA projects and of this amount, $11,161,267 was outstanding and payable from various funds.

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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.

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. 73, Accounting and Financial Reporting for Pensions and Related Assets That Are Not Within the Scope of GASB Statement 68, And Amendments To Certain Provisions of GASB Statement 67 and 68. This Statement establishes requirements for defined benefit pensions that are not within the scope of Statement No. 68, Accounting and Financial Reporting for Pensions, as well as for the assets accumulated for purposes of providing those pensions. In addition, it establishes requirements for defined contribution pensions that are not within the scope of Statement 68. It also amends certain provisions of Statement No. 67, Financial Reporting for Pension Plans, and Statement 68 for pension plans and pensions that are within their respective scopes. The Statement is effective for fiscal years beginning after June 15, 2016. The City has not yet determined the impact that implementation of GASB 73 will have on its net position. Statement No. 74, Financial Reporting for Postemployment Benefits Plans Other Than Pension Plans. This Statement replaces Statements No. 43, Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans, as amended, and No. 57, OPEB Measurements by Agent Employers and Agent Multiple-Employer Plans. It also includes requirements for defined contribution OPEB plans that replace the requirements for those OPEB plans in Statement No. 25, Financial Reporting for Defined Benefit Pension Plans and Note Disclosures for Defined Contribution Plans, as amended, Statement 43, and Statement No. 50, Pension Disclosures. This Statement is effective for financial statements for fiscal years beginning after June 15, 2016. The City has not yet determined the impact that implementation of GASB 74 will have on its net position. 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.

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June 30, 2016

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 not yet determined the impact that implementation of GASB 77 will have on its net position. GASB Statement No. 78, Pensions Provided Through Certain Multiple-Employer Defined Benefit Pension Plans - GASB 78 was issued in December 2015, and amends the scope and applicability of Statement 68 to exclude pensions provided to employees of state or local governmental employers through a cost-sharing multiple employer defined benefit pension plan that (1) is not a state or local governmental pension plan, (2) is used to provide defined benefit pensions both to employees of state or local governmental employers and to employees of employers that are not state or local governmental employers, and (3) has no predominant state or local governmental employer (either individually or collectively with other state or local governmental employers that provide pensions through the pension plan). This Statement establishes requirements for recognition and measurement of pension expense, expenditures, and liabilities; note disclosures; and required supplementary information for pensions that have the characteristics described above. The requirements of this Statement are effective for reporting periods beginning after December 15, 2015. At this time, the impact to the City is unknown. GASB Statement No. 79, Certain External Investment Pools and Pool Participants - GASB 79 was issued in December 2015, and addresses accounting and financial reporting for certain external investment pools and pool participants. Specifically, it establishes criteria for an external investment pool to qualify for making the election to measure all of its investments at amortized cost for financial reporting purposes. An external investment pool qualifies for that reporting if it meets all of the applicable criteria established in this Statement. The specific criteria address (1) how the external investment pool transacts with participants; (2) requirements for portfolio maturity, quality, diversification, and liquidity; and (3) calculation and requirements of a shadow price. Significant noncompliance prevents the external investment pool from measuring all of its investments at amortized cost for financial reporting purposes. Professional judgment is required to determine if instances of noncompliance with the criteria established by this Statement during the reporting period, individually or in the aggregate, were significant. The requirements of this Statement are effective for reporting periods beginning after June 15, 2015, except for certain provisions on portfolio quality, custodial credit risk, and shadow pricing. Those provisions are effective for reporting periods beginning after December 15, 2015. At this time, the impact to the City is unknown. GASB Statement No. 80, Blending Requirements for Certain Component Units - An Amendment of GASB Statement No. 14 – GASB 80 was issued in January 2016, and amends the blending requirements for the financial statement presentation of component units of all state and local governments. The additional criterion requires blending of a component unit incorporated as a not-for profit corporation in which the primary government is the sole corporate member. The additional criterion does not apply to component units included in the financial reporting entity pursuant to the provisions of Statement No. 39, Determining Whether Certain Organizations Are Component Units. The requirements of this Statement are effective for reporting periods beginning after June 15, 2016. At this time, the impact to the City is unknown. 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

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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. 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. 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. 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 July 2016, the EPWA issued $41,795,000 of Sales Tax and Utility System Revenue Bonds. The bonds mature in principal amounts of $710,000 to $1,605,000 on July 1 of each year with final maturity on July 1, 2036. The bonds have an interest rate of 3.00% to 5.00%. Proceeds of the bonds will be used for water and wastewater improvements.

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REQUIRED SUPPLEMENTARY INFORMATION

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June 30, 2016

ORIGINAL BUDGET FINAL BUDGET ACTUAL

VARIANCE WITH FINAL

BUDGET POSITIVE

(NEGATIVE)

REVENUES

TAXES:

Sales tax 34,132,640$ 34,132,640$ 33,823,506$ (309,134)$

Use tax 3,633,865 3,633,865 4,363,029 729,164

Franchise 2,472,812 2,472,812 2,231,857 (240,955)

Hotel/Motel tax - - - -

Liquor tax 42,324 42,324 49,633 7,309

Total Taxes 40,281,641 40,281,641 40,468,025 186,384

INTERGOVERNMENTAL:

Grant revenues - - 292,523 292,523

Alcoholic beverage 131,417 131,417 117,601 (13,816)

Cigarette tax 744,085 744,085 759,077 14,992

Vehicle tax 620,690 620,690 645,760 25,070

Gasoline tax 154,286 154,286 167,629 13,343

Total Intergovernmental 1,650,478 1,650,478 1,982,590 332,112

CHARGES FOR SERVICES:

Sw imming pool fees - - (220) (220)

Recreational program fees 60,347 60,347 67,428 7,081

Right-of-Way fees 4,962,817 4,962,817 4,962,817 -

Cemetery fees 155,590 155,590 153,126 (2,464)

Curb cut fees 9,710 9,710 10,200 490

Animal w elfare fees 51,830 51,830 53,290 1,460

Filing fees 59,608 59,608 81,481 21,873

911 fees 46,751 46,751 36,088 (10,663)

Transportation fees - - - -

Miscellaneous charges 5,801 5,801 25,166 19,365

Total Charges for Services 5,352,454 5,352,454 5,389,376 36,922

FINES AND FORFEITURES 2,129,109 2,129,109 1,641,283 (487,826)

LICENSES AND PERMITS 1,461,706 1,461,706 1,412,552 (49,154)

INVESTMENT INCOME 70,000 70,000 63,954 (6,046)

MISCELLANEOUS 224,850 224,850 233,744 8,894

TOTAL REVENUES 51,170,238 51,170,238 51,191,524 21,286

OTHER FINANCING SOURCES:

Transfers from other funds 1,081,526 13,765,341 13,765,341 -

Total Other Financing Sources 1,081,526 13,765,341 13,765,341 -

TOTAL REVENUES AND OTHER FINANCING SOURCES 52,251,764$ 64,935,579$ 64,956,865$ 21,286$

(Continued)


BUDGETARY COMPARISON SCHEDULE

GENERAL FUND

For the fiscal year ended June 30, 2016

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June 30, 2016


VARIANCE WITH FINAL

BUDGET POSITIVE

EXPENDITURES

General Government:

General:

Other services and charges 64,000$ 161,545$ 101,951$ 59,594$

Capital outlay - - - -

Total General 64,000 161,545 101,951 59,594

City Council:

Personal services 24,545 25,111 25,111 -

Materials and supplies 5,450 4,884 2,262 2,622

Other services and charges 138,200 188,200 139,668 48,532

Total City Council 168,195 218,195 167,041 51,154

Municipal Court:

Personal services 708,347 708,347 648,847 59,500




Total Judicial 882,812 882,812 775,889 106,923

Edmond-Guthrie Regional Airport


Cemetery:



Other services and charges 41,510 36,270 35,553 717


Total Cemetery 191,712 191,712 188,002 3,710

Planning and Zoning:





Total Planning and Zoning 626,918 646,598 636,356 10,242

Dow ntow n Community Center:





Dow ntow n Community Center 135,420 146,920 123,201 23,719

TOTAL GENERAL GOVERNMENT 2,169,057 2,413,799 2,126,327 287,472

ECONOMIC DEVELOPMENT:

Community Image:





Total Community Image 962,212 976,212 908,432 67,780

TOTAL ECONOMIC DEVELOPMENT 962,212 976,212 908,432 67,780

(Continued)



GENERAL FUND


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June 30, 2016


VARIANCE WITH FINAL

BUDGET POSITIVE

(NEGATIVE)

PUBLIC SAFETY:

Emergency Management:

Personal services 209,323 212,195 212,194 1



Capital outlay 50,000 50,000 - 50,000

Total Emergency Management 352,690 352,690 252,838 99,852

Building Department:

Personal services 1,237,590 1,237,590 1,188,435 49,155




Total Building Department 1,386,806 1,386,806 1,281,693 105,113

TOTAL PUBLIC SAFETY 1,739,496 1,739,496 1,534,531 204,965

STREETS AND HIGHWAYS:

Capital outlay 1,045,000 1,465,000 1,407,184 57,816

TOTAL STREETS AND HIGHWAYS 1,045,000 1,465,000 1,407,184 57,816

OUTSIDE AGENCIES:


TOTAL OUTSIDE AGENCIES 616,500 617,276 617,275 1

PARKS AND RECREATION:

Parks and Recreation:

Personal services 1,083,052 1,083,052 1,036,987 46,065

Material and supplies 185,374 189,315 157,114 32,201


Capital outlay - 19,500 - 19,500

Total Parks and Recreation 2,201,711 2,290,102 2,078,603 211,499

Senior Center:

Personal services 329,479 329,495 329,494 1



Total Senior Citizens 409,424 409,424 385,568 23,856

Festival Marketplace:


Materials and supplies 1,370 1,370 862 508


Total Festival Marketplace 38,904 38,904 22,713 16,191

Historical Society:

Materials and supplies 750 750 - 750


Total Historical Society 264,000 277,051 276,300 751

TOTAL PARKS AND RECREATION 2,914,039 3,015,481 2,763,184 252,297

TOTAL EXPENDITURES 9,446,304 10,227,264 9,356,933 870,331

OTHER FINANCING SOURCES (USES)

Transfers to other funds (44,287,510) (59,324,875) (59,309,114) (15,761)

Total Other Financing Uses (44,287,510) (59,324,875) (59,309,114) (15,761)

TOTAL EXPENDITURES AND OTHER FINANCING USES 53,733,814 69,552,139 68,666,047 886,092

REVENUES AND OTHER SOURCES OVER (UNDER) EXPENDITURES AND OTHER USES (1,482,050)$ (4,616,560)$ (3,709,182)$ 907,378$



GENERAL FUND


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Original Budget Final Budget Actual

Variance with Final Budget -

Positive (Negative)

REVENUESTaxes 4,259,494$ 4,259,494$ 4,227,938$ (31,556)$ Intergovernmental - - 67,136 67,136 Charges for services 6,000 6,000 12,042 6,042 Investment income 65,000 6,500 98,539 92,039 Miscellaneous 39,124 39,124 59,093 19,969

Total revenues 4,369,618 4,311,118 4,464,748 153,630


Public SafetyPersonal services 14,697,721 14,697,721 14,535,787 161,934 Materials and supplies 1,208,250 1,213,036 643,630 569,406 Other services and charges 3,546,543 3,667,221 3,275,460 391,761 Capital outlay 1,054,000 1,196,660 587,226 609,434

Total Expenditures 20,506,514 20,774,638 19,042,103 1,732,535 Excess (deficiency) of revenues over expenditures (16,136,896) (16,463,520) (14,577,355) 1,886,165

OTHER FINANCING SOURCES (USES)Transfers in 14,998,728 14,998,728 15,207,484 (208,756)

Total other financing sources and uses 14,998,728 14,998,728 15,207,484 (208,756)

Net change in fund balance (1,138,168)$ (1,464,792)$ 630,129$ 2,094,921$

City of Edmond, OklahomaBudgetary Comparison Schedule

Major Special Revenue Fund - Fire Public Safety Limited Tax FundFor the year ended June 30, 2016

Fire Public Safety Limited Tax Fund

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June 30, 2016

Original Budget Final Budget Actual

Variance with Final Budget -

Positive (Negative)

REVENUESTaxes 2,141,944$ 2,141,944$ 2,113,969$ (27,975)$ Intergovernmental 150,000 213,000 183,583 (29,417) Charges for services 3,000 3,000 - (3,000) Investment income 35,000 35,000 69,311 34,311 Miscellaneous 25,000 25,000 340,558 315,558

Total revenues 2,354,944 2,417,944 2,707,421 289,477


Public SafetyPersonal services 16,411,237 16,563,128 16,563,126 2 Materials and supplies 1,050,832 960,598 696,684 263,914 Other services and charges 4,403,924 4,418,484 4,133,923 284,561 Capital outlay 32,000 175,068 170,528 4,540

Total Expenditures 21,897,993 22,117,278 21,564,261 553,017 Excess (deficiency) of revenues over expenditures (19,543,049) (19,699,334) (18,856,840) 842,494

OTHER FINANCING SOURCES (USES)Transfers in 18,398,440 18,398,440 18,654,514 256,074

Total other financing sources and uses 18,398,440 18,398,440 18,654,514 256,074

Net change in fund balances (1,144,609)$ (1,300,894)$ (202,326)$ 1,098,568$

City of Edmond, OklahomaBudgetary Comparison Schedule

Major Special Revenue Fund -Police Public Safety Limited Tax FundFor the year ended June 30, 2016

Police Public Safety Limited Tax Fund

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June 30, 2016

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.

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June 30, 2016

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, 2016

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 51,218,416$ -$ -$ (26,892)$ 51,191,524$ Transfers In 13,765,341 - - - 13,765,341

Total Revenues and Other Financing Sources 64,983,757 - - (26,892) 64,956,865

Total Expenditures 20,224,809 (10,726,015) - (141,861) 9,356,933 Transfers Out 48,583,099 10,726,015 - - 59,309,114

Total Expenditures and Other Financing Uses 68,807,908 - - (141,861) 68,666,047

Net Changes in Fund Balance (3,824,151)$ -$ -$ 114,969$ (3,709,182)$

Fire Public Safety Limited Tax Fund:Total Revenues 8,097,246$ -$ (3,632,498)$ -$ 4,464,748$ Transfers In 15,207,484 - - - 15,207,484

Total Revenues and Other Financing Sources 23,304,730 - (3,632,498) - 19,672,232

Total Expenditures 22,674,601 - (3,632,498) - 19,042,103 Total Expenditures and Other Financing Uses 22,674,601 - (3,632,498) - 19,042,103

Net Changes in Fund Balance 630,129$ -$ -$ -$ 630,129$

Police Public Safety Limited Tax Fund:Total Revenues 3,917,080$ -$ (1,209,659)$ -$ 2,707,421$ Transfers In 18,654,514 - - - 18,654,514

Total Revenues and Other Financing Sources 22,571,594 - (1,209,659) - 21,361,935

Total Expenditures 22,773,920 - (1,209,659) - 21,564,261 Total Expenditures and Other Financing Uses 22,773,920 - (1,209,659) - 21,564,261

Net Changes in Fund Balance (202,326)$ -$ -$ -$ (202,326)$

All governmental funds of the city are required to have annual budgets. The City prepared and adopted a legal annual budget for all governmental funds except the Roadway Improvement Fund and the 1996 CIP Tax Fund. 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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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

City's proportion of the net pension liability 3.0197% 3.1355%

City's proportionate share of the net pension liability (asset) (1,016,693)$ 127,846$

City's covered-employee payroll 8,445,211$ 8,831,635$

City's proportionate share of the net pension liability (asset) as a percentage of its covered-employee payroll (12.04%) 1.45%

Plan fiduciary net position as a percentage of the total pension liability (asset) 101.53% 99.82%

Notes to Schedule:

Only two 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

Statutorily required contribution 1,152,006$ 1,305,813$

Contributions in relation to the statutorily required contribution 1,152,006 1,305,813

Contribution deficiency (excess) -$ -$


Contributions as a percentage of covered-employee payroll 13% 13%

Notes to Schedule:


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June 30, 2016

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

City's proportion of the net pension liability 3.5619241% 3.566186%

City's proportionate share of the net pension liability 36,628,970$ 37,851,799$


City's proportionate share of the net pension liability as a percentage of its covered-employee payroll 376.49% 388.47%

Plan fiduciary net position as a percentage of the total pension liability 68.12% 68.27%

Notes to Schedule:


SCHEDULE OF CITY CONTRIBUTIONSOKLAHOMA FIREFIGHTERS PENSION & RETIREMENT SYSTEMLast 10 Fiscal Years

2015 2016

Statutorily required contribution 1,364,114$ 1,474,042$

Contributions in relation to the statutorily required contribution 1,364,114 1,474,042

Contribution deficiency (excess) -$ -$


Contributions as a percentage of covered-employee payroll 14% 14%

Notes to Schedule:


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June 30, 2016

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

Total pension liabilityService cost 2,465,096$ 2,619,414$ Interest 4,803,663 5,193,616 Changes of benefit terms 1,229,173 - Difference between expected and actual experience 700,579 584,011 Benefit payments, including refunds of member contributions (2,164,180) (3,135,897) Net change in total pension liability 7,034,331 5,261,144 Total pension liability-beginning 64,855,477 71,889,808 Total pension liability-ending (a) 71,889,808$ 77,150,952$

Plan fiduciary net positionContributions-employer 1,965,953$ 2,108,839$ Contributions-member 1,264,678 1,338,561 Net investment income 8,331,083 (2,627,009) Benefit payments, including refunds of member contributions (2,164,180) (3,135,897) Administrative expense (38,377) (30,748) Net change in plan fiduciary net position 9,359,157 (2,346,254) Plan fiduciary net position-beginning 56,730,705 66,089,862 Plan fiduciary net position-ending (b) 66,089,862$ 63,743,608$

City's net pension liability - ending (a)-(b) 5,799,946$ 13,407,344$

Plan fiduciary net position as a percentage of the total pension liability 91.93% 82.62%

Covered-employee payroll 23,801,107$ 25,382,314$

City's net pension liability as a percentage of covered employee payroll 24.37% 52.82%

Notes to Schedule:


99


June 30, 2016

SCHEDULE OF EMPLOYER CONTRIBUTIONSSINGLE-EMPLOYER DEFINED BENEFIT PENSION PLANLast 10 Fiscal Years

For the year June 30.2012 2013 2014 2015 2016

Actuarially determined contribution 1,803,629$ 1,846,314$ 2,004,213$ 2,195,239$ 2,397,984$ Contributions in relation to the actuarially determined contribution 1,886,892 1,822,720 1,965,953 2,108,839 2,292,339 Contribution deficiency (excess) (83,263)$ 23,594$ 38,260$ 86,400$ 105,645$

Covered-employee payroll 22,630,229$ 22,598,708$ 24,089,104$ 25,496,393$ 26,673,905$

Contributions as a percentage of covered-employee payroll 7.97% 8.17% 8.32% 8.61% 8.99%

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 In 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 30.2007 2008 2009 2010 2011

Actuarially determined contribution 1,326,747$ 1,135,240$ 1,334,008$ 1,879,700$ 1,803,185$ Contributions in relation to the actuarially determined contribution 1,379,744 1,407,776 1,271,783 1,866,908 1,811,247 Contribution deficiency (excess) (52,997)$ (272,536)$ 62,225$ 12,792$ (8,062)$

Covered-employee payroll 18,476,444$ 19,730,579$ 21,223,530$ 22,521,201$ 21,588,603$

Contributions as a percentage of covered-employee payroll 7.18% 5.75% 6.29% 8.35% 8.35%

100


June 30, 2016

PENSION FUND - SCHEDULE OF INVESTMENT RETURNSLast 10 Fiscal Years *

Year Ended Year EndedJune 30. 2014 June 30. 2015

Annual money-weighted rate of return, net of investment expense 14.55% -3.97%

Notes to Schedule:


101


June 30, 2016

Schedules of Required Supplementary InformationOPEB ACTUARIAL VALUATIONFUNDING SCHEDULESJune 30, 2016

The funded status and funding progress of the City's defined benefit OPEB plan for the most recent actuarial valuations is as follows:

July 1, 2010 July 1, 2011 July 1, 2012 July 1, 2013 July 1, 2014 July 1, 2015

Actuarial accrued liability - AAL (a) 3,770,440$ 4,239,856$ 4,837,346$ 4,854,278$ 4,929,613$ 5,344,565$ 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

Funded ratio (b)/(a) 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$

UAAL (funding excess) as a % of covered payroll [UAAL/( c)] 11% 13% 15% 15% 14% 14%

102


June 30, 2016

OTHER SUPPLEMENTARY INFORMATION

103


June 30, 2016

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.

104


June 30, 2016

City of Edmond, OklahomaBalance Sheet

General Fund AccountsJune 30, 2016

General FundReal Property

Fund

Edmond Electric Economic

DevelopmentPark Special

Events Total General

Fund ASSETS

Cash and cash equivalents 110,546$ 15,616$ 80,628$ 4,244$ 211,034$ Investments 1,126,379 139,103 718,253 37,804 2,021,539 Due from other funds 85,708 - - - 85,708 Due from other governments 5,684,907 - - - 5,684,907 Accrued interest receivable 2,472 305 1,576 83 4,436 Other receivables 1,132,882 - - - 1,132,882

Total assets 8,142,894 155,024 800,457 42,131 9,140,506


Accounts payable 774,098 - - - 774,098 Due to other funds 18,112 - - - 18,112 Deferred revenue 197,070 - - - 197,070 Amounts held in escrow 519,166 - - - 519,166

Total liabilities 1,508,446 - - - 1,508,446

DEFERRED INFLOWS OF RESOURCESUnavailable revenue 477,898 182 940 50 479,070

Total deferred inflows of resources 477,898 182 940 50 479,070

Fund balances:Restricted 2,889,481 - - - 2,889,481 Assigned 124,430 154,842 799,517 42,081 1,120,870 Unassigned 3,142,639 - - - 3,142,639

Total fund balances 6,156,550 154,842 799,517 42,081 7,152,990 Total liabilities, deferred inflows of resources and fund balances 8,142,894$ 155,024$ 800,457$ 42,131$ 9,140,506$

105


June 30, 2016

City of Edmond, OklahomaStatement of Revenues, Expenditures and Changes in Fund Balances

General Fund AccountsFor the Year Ended June 30, 2016

General FundReal Property

Fund

Edmond Electric Economic

Development Park Special Events Total General Fund REVENUES

Sales and use taxes 38,186,535$ -$ -$ -$ 38,186,535$ Franchise and public service taxes 2,281,490 - - - 2,281,490 Intergovernmental 1,982,590 - - - 1,982,590 Charges for services 5,389,376 - - 8,104 5,397,480 Fines and forfeitures 1,641,283 - - - 1,641,283 Licenses and permits 1,412,552 - - - 1,412,552 Investment income 63,954 1,314 7,736 127 73,131 Miscellaneous 233,744 - - 9,611 243,355

Total revenues 51,191,524 1,314 7,736 17,842 51,218,416


General government 5,110,872 25 141,140 - 5,252,037 Public safety 2,988,821 - - - 2,988,821 Health and sanitation 647,276 - - - 647,276 Culture, parks and recreation 3,609,176 - - 696 3,609,872 Economic development 576,728 - - - 576,728 Streets and highways 6,354,224 - - - 6,354,224 Capital Outlay 937,712 - - - 937,712

Total Expenditures 20,224,809 25 141,140 696 20,366,670 Excess (deficiency) of revenues over expenditures 30,966,715 1,289 (133,404) 17,146 30,851,746

OTHER FINANCING SOURCES (USES)Transfers in 13,765,341 - - - 13,765,341 Transfers out (48,583,099) - - - (48,583,099)

Total other financing sources and uses (34,817,758) - - - (34,817,758) Net change in fund balances (3,851,043) 1,289 (133,404) 17,146 (3,966,012)

Fund balances - beginning 10,007,593 153,553 932,921 24,935 11,119,002

Fund balances - ending 6,156,550$ 154,842$ 799,517$ 42,081$ 7,152,990$

106


June 30, 2016

Budget ActualVariance Positive

(Negative) Budget ActualVariance Positive

(Negative)

Revenues:

Charges for services -$ -$ -$ 500$ 8,104$ 7,604$

Investment income - 7,736 7,736 - 127 127

Miscellaneous - - - 5,000 9,611 4,611

Total Revenues -$ 7,736$ 7,736$ 5,500$ 17,842$ 12,342$

Expenditures:

General Government:

Personal services -$ -$ -$ -$ -$ -$

Materials and supplies - - - - - -

Other services and charges 141,141 141,140 1 - - -

Capital outlay - - - - - -

Debt service - - - - - -

Total General Government 141,141$ 141,140$ 1$ -$ -$ -$


Personal services -$ -$ -$ -$ -$ -$

Materials and supplies - - - 2,500 696 1,804

Other service and charges - - - 15,000 - 15,000


Total Parks and Recreation -$ -$ -$ 17,500$ 696$ 16,804$

Total Expenditures 141,141$ 141,140$ 1$ 17,500$ 696$ 16,804$

Revenues and other sources over (under) expenditures and other uses (141,141) (133,404) 7,737 (12,000) 17,146 29,146

Fund Balance-beginning of year 932,921 932,921 - 24,935 24,935 -

Fund Balance -end of year 791,780$ 799,517$ 7,737$ 12,935$ 42,081$ 29,146$

EDMOND ELECTRIC ECONOMIC DEVELOPMENT PARKS SPECIAL EVENTS FUND

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, 2016

107


June 30, 2016

(Continued)


(Negative)

Revenues:

Charges for services -$ -$ -$

Investment income 1,000 1,313 313

Miscellaneous - - -

Total Revenues 1,000$ 1,313$ 313$

Expenditures:

General Government:

Personal services -$ -$ -$

Materials and supplies - - -

Other services and charges 75 25 50

Capital outlay 154,163 - 154,163

Debt service - - -

Total General Government 154,238$ 25$ 154,213$


Personal services -$ -$ -$

Materials and supplies - - -

Other service and charges - - -

Capital outlay - - -

Total Parks and Recreation -$ -$ -$

Total Expenditures 154,238$ 25$ 154,213$

Revenues and other sources over (under) expenditures and other uses (153,238) 1,288 154,526

Fund Balance-beginning of year 153,553 153,553 -

Fund Balance -end of year 315$ 154,841$ 154,526$

REAL PROPERTY FUND

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, 2016

108


June 30, 2016

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)

109


June 30, 2016

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.

110


June 30, 2016

CDBG Entitlement

FundAsset Forfeiture

FundSenior Center

Fund

Convention and Visitor's Bureau

FundHospital Sale

Trust FundAmbulatory

Service FundASSETSCash and cash equivalents -$ 62,948$ 26,716$ 10,229$ 1,316,571$ 54,046$ Investments - 560,757 237,993 91,118 - 481,443 Due from other governments 87,198 - - - - - Accrued interest receivable - 1,230 522 200 - 1,056 Other receivable - - - 47,425 3,303 34,972 Interfund loan receivable - - - - 6,881,060 -

Total assets 87,198 624,935 265,231 148,972 8,200,934 571,517


Accounts payable 3,393 - 7,134 26,286 - - Due to other funds 84,708 - - - 1,000 2,248

Total liabilities 88,101 - 7,134 26,286 1,000 2,248

DEFERRED INFLOWS OF RESOURCESUnavailable revenue - 734 311 120 - 630

Total deferred inflows of resources - 734 311 120 - 630

Fund balances:Restricted - 592,818 238,743 104,165 8,199,934 556,818 Committed - - 8,902 - - - Assigned - 31,383 10,141 18,401 - 11,821 Unassigned (903) - - - - -

Total fund balances (903) 624,201 257,786 122,566 8,199,934 568,639 Total liabilities, deferred inflows of resources and fund balances 87,198$ 624,935$ 265,231$ 148,972$ 8,200,934$ 571,517$

(Continued)

City of Edmond, OklahomaCombining Balance Sheet

Nonmajor Governmental FundsJune 30, 2016

SPECIAL REVENUE FUNDS

111


June 30, 2016

Cemetery CarePark Sales Tax

FundArt in Public Places Fund

Capital Improvement

Fund

Roadway Improvement

Fund1996 CIP Tax

Fund

Total Governmental

FundsASSETSCash and cash equivalents 9,971$ 210,474$ 26,268$ 123,591$ 1,111$ 18,803$ 1,860,728$ Investments 88,826 1,874,941 53,908 1,100,969 9,896 167,503 4,667,354 Due from other governments - 305,739 - - - - 392,937 Accrued interest receivable 195 4,115 119 2,416 22 368 10,243 Other receivable - 77,048 (72) 75,000 - - 237,676 Interfund loan receivable - - - - - - 6,881,060

Total assets 98,992 2,472,317 80,223 1,301,976 11,029 186,674 14,049,998


Accounts payable - 266,074 6,844 103,672 - - 413,403 Due to other funds - - 5 - - - 87,961

Total liabilities - 266,074 6,849 103,672 - - 501,364

DEFERRED INFLOWS OF RESOURCESUnavailable revenue 116 2,455 71 1,442 13 219 6,111

Total deferred inflows of resources 116 2,455 71 1,442 13 219 6,111

Fund balances:Restricted 94,620 1,964,251 66,014 - 10,199 141,718 11,969,280 Committed - - - - - - 8,902 Assigned 4,256 239,537 7,289 1,196,862 817 44,737 1,565,244 Unassigned - - - - - - (903)

Total fund balances 98,876 2,203,788 73,303 1,196,862 11,016 186,455 13,542,523 Total liabilities, deferred inflows of resources and fund balances 98,992$ 2,472,317$ 80,223$ 1,301,976$ 11,029$ 186,674$ 14,049,998$

City of Edmond, OklahomaCombining Balance Sheet

Nonmajor Governmental FundsJune 30, 2016

CAPITAL PROJECT FUNDS

112


June 30, 2016

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 - - - 464,362 - - Intergovernmental 375,377 - - - - - Charges for services 1 - 1,598 - - 869,997 Investment earnings - 4,810 2,322 680 361 3,702 Investment earnings on interfund loans - - - - 85,876 - Miscellaneous - 110,810 54,587 22,355 - 4

Total revenues 375,378 115,620 58,507 487,397 86,237 873,703


General government 94,183 - - 474,553 2,200 - Public Safety - 31,756 - - - - Health and welfare - - - - - 737,401

Culture, parks and recreation - - 55,808 - - - Capital Outlay 282,473 - - - - -

Total Expenditures 376,656 31,756 55,808 474,553 2,200 737,401 Excess (deficiency) of revenues over expenditures (1,278) 83,864 2,699 12,844 84,037 136,302

OTHER FINANCING SOURCES (USES)Transfers in - - - - - - Transfers out - - - - - -

Total other financing sources and uses - - - - - - Net change in fund balances (1,278) 83,864 2,699 12,844 84,037 136,302

Fund balances - beginning 375 540,337 255,087 109,722 8,115,897 432,337

Fund balances - ending (903)$ 624,201$ 257,786$ 122,566$ 8,199,934$ 568,639$

(Continued)


City of Edmond, OklahomaCombining Statement of Revenues, Expenditures and Changes in Fund Balances

Nonmajor Governmental FundsFor the Year Ended June 30, 2016

113


June 30, 2016

Cemetery CarePark Sales Tax

FundArt in Public Places Fund

Capital Improvement

Fund

Roadway Improvement

Fund1996 CIP Tax

Fund

Total-Other Governmental

FundsREVENUES

Sales and use taxes -$ 2,113,969$ -$ -$ -$ -$ 2,113,969$ Hotel/motel taxes - - - - - - 464,362 Intergovernmental - - - - - - 375,377 Charges for services 30,162 - - - - - 901,758 Investment earnings 1,360 14,226 4,466 11,139 94 1,640 44,800 Investment earnings on interfund loans - - - - - - 85,876 Miscellaneous - 77,049 9,775 75,000 - - 349,580

Total revenues 31,522 2,205,244 14,241 86,139 94 1,640 4,335,722


General government 6,024 - - 204 2 30 577,196 Public Safety - - - - - - 31,756 Health and welfare - - - - - - 737,401

Culture, parks and recreation - 994,184 36,268 - - - 1,086,260 Capital Outlay 77,634 339,120 165,690 482,942 - - 1,347,859

Total Expenditures 83,658 1,333,304 201,958 483,146 2 30 3,780,472 Excess (deficiency) of revenues over expenditures (52,136) 871,940 (187,717) (397,007) 92 1,610 555,250

OTHER FINANCING SOURCES (USES)Transfers in - - 35,217 311,000 - - 346,217 Transfers out - (60,129) - - - - (60,129)

Total other financing sources and uses - (60,129) 35,217 311,000 - - 286,088 Net change in fund balances (52,136) 811,811 (152,500) (86,007) 92 1,610 841,338

Fund balances - beginning 151,012 1,391,977 225,803 1,282,869 10,924 184,845 12,701,185

Fund balances - ending 98,876$ 2,203,788$ 73,303$ 1,196,862$ 11,016$ 186,455$ 13,542,523$



Combining Statement of Revenues, Expenditures and Changes in Fund BalancesNonmajor Governmental Funds


114


June 30, 2016



(Negative)

Revenues:

Taxes -$ -$ -$ -$ -$ -$

Intergovernmental 477,407 375,377 (102,030) - - -

Charges for services - 1 1 - - -

Investment income - - - 2,000 4,810 2,810

Miscellaneous - - - 25,000 110,810 85,810

Total Revenues 477,407 375,378 (102,029) 27,000 115,620 88,620

General Government:

Personal services - - - - - -


Other services and charges - - - - - -



Total General Government - - - - - -

Public Safety:


Materials and supplies - - - 37,000 31,665 5,335

Other services and charges - - - 7,700 91 7,609

Capital outlay - - - 19,000 - 19,000

Total Public Safety - - - 63,700 31,756 31,944



Material and supplies - - - - - -

Other services and charges - - - -


Total Parks and Recreation - - - - - -

Health & Welfare:





Total Health & Welfare - - - - - -

Economic Development & Opp.

Personal services 66,499 49,764 16,735 - - -

Materials and supplies 850 510 340 - - -

Other services and charges 443,860 326,382 117,478 - - -


Total Economic Development & Opp 511,209 376,656 134,553 - - -

Street:





Total Street - - - - - -

Total Expenditures 511,209 376,656 134,553 63,700 31,756 31,944

Revenues over (under) expenditures (33,802)$ (1,278)$ 32,524$ (36,700)$ 83,864$ 120,564$

Other financing sources (uses):

Transfers from other funds - - - - - -

Transfers to other funds - - - - - -

Revenues and other sources over (under) expenditures and other uses (33,802) (1,278) 32,524 (36,700) 83,864 120,564

Fund Balance-beginning of year 375 375 - 540,337 540,337 -

Fund Balance -end of year (33,427)$ (903)$ 32,524$ 503,637$ 624,201$ 120,564$

(continued)


ASSET FORFEITURE FUND


CDBG ENTITLEMENT


SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE-BUDGETARY BASIS

BUDGET AND ACTUAL - NONMAJOR GOVERNEMNTAL FUNDS

115


June 30, 2016



(Negative)

Revenues:

Taxes -$ -$ -$ 476,000$ 464,362$ (11,638)$

Intergovernmental - - - - - -

Charges for services 2,981 1,598 (1,383) - - -

Investment income 1,500 2,322 822 500 680 180

Miscellaneous 58,616 54,587 (4,029) 18,000 22,355 4,355

Total Revenues 63,097 58,507 (4,590) 494,500 487,397 (7,103)

General Government:

Personal services - - - 224,928 212,080 12,848


Other services and charges - - - 268,605 256,895 11,710



Total General Government - - - 507,058 474,553 32,505

Public Safety:





Total Public Safety - - - - - -



Material and supplies 8,150 7,958 192 - - -

Other services and charges 56,950 47,850 9,100 - -


Total Parks and Recreation 65,100 55,808 9,292 - - -

Health & Welfare:











Total Economic Development & Opp - - - - - -

Street:







Revenues over (under) expenditures (2,003)$ 2,699$ 4,702$ (12,558)$ 12,844$ 25,402$




Revenues and other sources over (under) expenditures and other uses (2,003) 2,699 4,702 (12,558) 12,844 25,402


Fund Balance -end of year 253,084$ 257,786$ 4,702$ 97,164$ 122,566$ 25,402$

(continued)

SENIOR CENTER FUND CONVENTION AND VISITOR'S BUREAU FUND






116


June 30, 2016



(Negative)

Revenues:

Taxes -$ -$ -$ -$ -$ -$


Charges for services - - - 900,000 869,997 (30,003)

Investment income 77,000 86,237 9,237 1,200 3,702 2,502

Miscellaneous - - - - 4 4

Total Revenues 77,000 86,237 9,237 901,200 873,703 (27,497)

General Government:



Other services and charges 2,200 2,200 - - - -



Total General Government 2,200 2,200 - - - -

Public Safety:












Health & Welfare:





Total Health & Welfare - - - 821,530 737,401 84,129







Street:






Total Expenditures 2,200 2,200 - 821,530 737,401 84,129

Revenues over (under) expenditures 74,800$ 84,037$ 9,237$ 79,670$ 136,302$ 56,632$




Revenues and other sources over (under) expenditures and other uses 74,800 84,037 9,237 79,670 136,302 56,632

Fund Balance-beginning of year 8,115,897 8,115,897 - 432,337 432,337 -

Fund Balance -end of year 8,190,697$ 8,199,934$ 9,237$ 512,007$ 568,639$ 56,632$

(continued)

HOSPITAL SALES TRUST FUND





AMBULATORY SERVICE FUND


117


June 30, 2016



(Negative)

Revenues:

Taxes -$ -$ -$ 2,141,944$ 2,113,969$ (27,975)$


Charges for services 19,449 30,162 10,713 - - -

Investment income 600 1,360 760 10,000 14,226 4,226

Miscellaneous - - - 56,000 77,049 21,049

Total Revenues 20,049 31,522 11,473 2,207,944 2,205,244 (2,700)

General Government:



Other services and charges 75 24 51 - - -

Capital outlay 133,000 83,634 49,366 - - -


Total General Government 133,075 83,658 49,417 - - -

Public Safety:







Personal services - - - 363,775 356,709 7,066

Material and supplies - - - 50,720 45,791 4,929

Other services and charges - - 702,094 591,684 110,410

Capital outlay - - - 1,705,795 339,120 1,366,675

Total Parks and Recreation - - - 2,822,384 1,333,304 1,489,080

Health & Welfare:












Street:






Total Expenditures 133,075 83,658 49,417 2,822,384 1,333,304 1,489,080

Revenues over (under) expenditures (113,026)$ (52,136)$ 60,890$ (614,440)$ 871,940$ 1,486,380$



Transfers to other funds - - - (108,479) (60,129) 48,350

Revenues and other sources over (under) expenditures and other uses (113,026) (52,136) 60,890 (722,919) 811,811 1,534,730

Fund Balance-beginning of year 151,012 151,012 - 1,391,977 1,391,977 -

Fund Balance -end of year 37,986$ 98,876$ 60,890$ 669,058$ 2,203,788$ 1,534,730$

(continued)

PARK SALES TAX FUNDS






CEMETERY CARE

118


June 30, 2016



(Negative)

Revenues:

Taxes -$ -$ -$ -$ -$ -$


Charges for services - - - - - -

Investment income 350 4,465 4,115 2,500 11,139 8,639

Miscellaneous 103,000 9,775 (93,225) 75,000 75,000 -

Total Revenues 103,350 14,240 (89,110) 77,500 86,139 8,639

General Government:



Other services and charges - - - 150 204 (54)

Capital outlay - - - 593,931 293,124 300,807


Total General Government - - - 594,081 293,328 300,753

Public Safety:








Material and supplies 25 1 24 - - -

Other services and charges 36,268 36,267 1 - -

Capital outlay 314,030 165,690 148,340 199,813 134,147 65,666

Total Parks and Recreation 350,323 201,958 148,365 199,813 134,147 65,666

Health & Welfare:












Street:




Capital outlay - - - 179,275 55,671 123,604

Total Street - - - 179,275 55,671 123,604


Revenues over (under) expenditures (246,973)$ (187,718)$ 59,255$ (895,669)$ (397,007)$ 498,662$


Transfers from other funds 126,000 35,217 (90,783) 311,000 311,000 -


Revenues and other sources over (under) expenditures and other uses (120,973) (152,501) (31,528) (584,669) (86,007) 498,662

Fund Balance-beginning of year 225,804 225,804 - 1,282,869 1,282,869 -

Fund Balance -end of year 104,831$ 73,303$ (31,528)$ 698,200$ 1,196,862$ 498,662$

(continued)






ART IN PUBLIC PLACES FUND CAPITAL IMPROVEMENT FUND

119


June 30, 2016



(Negative)

Revenues:

Taxes -$ -$ -$ -$ -$ -$


Charges for services - - - - - -

Investment income - 94 94 - 1,640 1,640

Miscellaneous - - - - - -

Total Revenues - 94 94 - 1,640 1,640

General Government:


Materials and supplies 2 2 - - - -

Other services and charges - - - 30 30 -



Total General Government 2 2 - 30 30 -

Public Safety:












Health & Welfare:












Street:






Total Expenditures 2 2 - 30 30 -

Revenues over (under) expenditures (2)$ 92$ 94$ (30)$ 1,610$ 1,640$




Revenues and other sources over (under) expenditures and other uses (2) 92 94 (30) 1,610 1,640


Fund Balance -end of year 10,922$ 11,016$ 94$ 184,815$ 186,455$ 1,640$

(continued)






ROADWAY IMPROVEMENT FUND 1996 CIP TAX FUND

120


June 30, 2016


(Negative) Budget Actual

Variance Positive

(Negative)

REVENUES

Taxes 12,769,448$ 12,683,814$ (85,634)$ 8,512,800$ 8,455,876$ (56,924)$ Intergovernmental - - ‐ - - ‐ Licenses and permits - - ‐ - - ‐ Investment income 350,000 524,946 174,946 15,000 34,579 19,579 Miscellaneous 543,416 496,341 (47,075) - - ‐ Contributed capital - - ‐ - - ‐ Investment income ‐ ‐ ‐ - ‐ ‐ Miscellaneous ‐ ‐ ‐ - ‐ ‐

Total revenues 13,662,864 13,705,101 42,237 8,527,800 8,490,455 (37,345)

EXPENDITURES

General Government: - -

Materials and supplies 200 18 182 - - -

Other services and charges 128,936 108,284 20,652 - - -

Capital outlay 251,215 - 251,215 - - -

Debt service 8,443,734 8,443,734 - - - -

Total General Government 8,824,085 8,552,036 272,049 - - ‐

Public Safety: - -

Materials and supplies - - - 1,207,134 1,207,134 -


Capital outlay - - - 10,963,479 4,263,492 6,699,987

Debt service - - - 85,876 85,876 -

Total Public Safety - - ‐ 13,005,619 5,820,164 7,185,455


Capital outlay 3,577,244 514,706 3,062,538 - - ‐

Total Parks and Recreation 3,577,244 514,706 3,062,538 - - ‐

Economic Development & Opp:

Capital outlay 6,738,901 1,777,133 4,961,768 - - ‐

Total Economic Development & Opp 6,738,901 1,777,133 4,961,768 - - ‐

Street:

Capital outlay 18,918,621 10,325,797 8,592,824 - - ‐

Total Street 18,918,621 10,325,797 8,592,824 - - ‐

Total Expenditures 38,058,851 21,169,672 16,889,179 - 5,820,164 7,185,455

Revenues over (under) expenditures (24,395,987) (7,464,571) 16,931,416 (4,477,819) 2,670,291 7,148,110


Proceeds from revenue bonds - - - - - -

Premium on revenue bonds - - - - - -

Transfer to escrow agent - - - - - -

Transfers from other funds 4,700,000 4,700,000 - - - -

Transfers to other funds - - - (4,700,000) (4,700,000) -

Total of other financing resources 4,700,000 4,700,000 - (4,700,000) (4,700,000) -

Revenues and other sources over (under) expenditures and other uses (19,695,987) (2,764,571) 16,931,416 (9,177,819) (2,029,709) 7,148,110

Fund Balance-beginning of year 34,860,132 34,860,132 - 31,499 31,499 -

Fund Balance -end of year 15,164,145$ 32,095,561$ 16,931,416$ (9,146,320)$ (1,998,210)$ 7,148,110$

Capital Project Funds2000 Capital Improvement Tax Fund 2012 Public Safety Center Tax Fund



BUDGET AND ACTUAL - MAJOR GOVERNEMNTAL CAPITAL PROJECT FUND


121


June 30, 2016

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.

122


June 30, 2016

City of Edmond, OklahomaCombining Statement of Net Position

Other Enterprise FundsJune 30, 2016

PWA Sanitation Fund

PWA Arcadia Lake Fund

PWA Drainage Fund

Kickingbird Golf Course Fund

Yourgovshop Fund CityLink Total

ASSETSCurrent assets:

Cash and cash equivalents 549,934$ 25,327$ 745,757$ 63,506$ 22,529$ 63,118$ 1,470,171$ Investments 4,649,213 203,233 6,590,593 559,484 200,701 319,279 12,522,503 Restricted assets:

Cash and cash equivalents - 729,848 - 227,663 - - 957,511 Investments 249,696 16,839 52,743 4,941 - - 324,219

Receivables:Accrued interest receivable 10,751 449 14,579 1,228 440 700 28,147 Utility receivables, net of allowance for uncollectible accounts 949,397 - 221,892 - - - 1,171,289 Due from other governments - - - 2,114 - 287,654 289,768 Other receivables 4,500 - - - 29,155 - 33,655

Due from other funds - - 177,083 - - - 177,083 Inventories - - - 75,114 - - 75,114

Total current assets 6,413,491 975,696 7,802,647 934,050 252,825 670,751 17,049,460 Non-current assets:

Restricted assets:Cash and cash equivalents - 100,756 - 32,288 - - 133,044 Investments 329 161,231 - 51,668 - - 213,228

Capital Assets:Nondepreciable - 495,278 120,908 578,162 - - 1,194,348 Depreciable, net of accumulated depreciation 387,988 3,675,490 7,309,053 1,159,445 - - 12,531,976

Total non-current assets 388,317 4,432,755 7,429,961 1,821,563 - - 14,072,596 Total assets 6,801,808 5,408,451 15,232,608 2,755,613 252,825 670,751 31,122,056

DEFERRED OUTFLOWS OF RESOURCESDeferred charge on refunding 5,240 62,182 - 19,927 - - 87,349 Deferred amounts related to pensions 254,865 75,232 76,281 137,487 6,096 8,281 558,242

Total deferred outflows of resources 260,105 137,414 76,281 157,414 6,096 8,281 645,591

LIABILITIESCurrent liabilities:

Accounts payable 365,839 7,326 1,291 101,832 - 16,206 492,494 Accrued wages payable 46,560 27,876 13,385 45,306 1,071 1,046 135,244 Accrued interest payable 5,842 22,749 - 7,290 - - 35,881 Due to other funds 16,916 - - - - - 16,916 Compensated absences 9,698 3,809 3,637 6,221 366 142 23,873 Meter deposit liability 249,696 1,000 52,743 - - - 303,439 Revenue bonds payable 43,211 345,871 - 110,837 - - 499,919

Total current liabilities 737,762 408,631 71,056 271,486 1,437 17,394 1,507,766 Non-current liabilities:

Compensated absences 87,278 34,210 32,723 55,985 3,293 1,275 214,764 Net OPEB obligation 109,862 26,345 22,049 63,352 2,192 1,333 225,133 Net pension liability 507,707 149,048 151,956 270,074 12,141 16,496 1,107,422 Revenue bonds payable, net 262,467 2,100,355 - 673,073 - - 3,035,895

Total non-current liabilities 967,314 2,309,958 206,728 1,062,484 17,626 19,104 4,583,214 Total liabilities 1,705,076 2,718,589 277,784 1,333,970 19,063 36,498 6,090,980

DEFERRED INFLOW OF RESOURCESDeferred amounts related to pensions 878 - 453 - - 3,284 4,615

NET POSITIONInvested in capital assets, net of related debt 87,550 1,786,724 7,429,961 973,624 - - 10,277,859 Restricted for debt service - 984,925 - 309,270 - - 1,294,195 Restricted for scholarships - - - 1,301 - - 1,301 Unrestricted 5,268,409 55,627 7,600,691 294,862 239,858 639,250 14,098,697

Total net position 5,355,959$ 2,827,276$ 15,030,652$ 1,579,057$ 239,858$ 639,250$ 25,672,052$

123


June 30, 2016

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

Other Enterprise FundsFor the Year Ended June 30, 2016

PWA Sanitation Fund


PWA Drainage Fund



REVENUESCharges for services 9,128,560$ 1,025,131$ 1,876,612$ 1,739,705$ -$ 262,869$ 14,032,877$ Operating grants and contributions - - - 16,315 - 469,482 485,797 Miscellaneous - 53,300 - 278,734 63,524 - 395,558

Total operating revenues 9,128,560 1,078,431 1,876,612 2,034,754 63,524 732,351 14,914,232

OPERATING EXPENSESPersonal services 1,444,073 623,209 413,995 1,085,919 32,539 44,127 3,643,862 Materials and supplies 330,370 92,731 9,620 448,557 6 82,063 963,347 Maintenance, operations and contractual services 5,541,173 390,426 413,589 499,140 17,538 1,170,414 8,032,280 Depreciation 27,318 212,060 66,374 270,211 - - 575,963

Total Operating Expenses 7,342,934 1,318,426 903,578 2,303,827 50,083 1,296,604 13,215,452 Operating income (loss) 1,785,626 (239,995) 973,034 (269,073) 13,441 (564,253) 1,698,780

NON-OPERATING REVENUES (EXPENSES)Interest and investment revenue 38,866 8,270 64,100 6,757 1,750 3,430 123,173 Gain on capital asset disposal - - - - - - - Interest expense (10,097) (46,275) - (14,829) - - (71,201) Miscellaneous expenses - - (79) - - - (79)

Total non-operating revenue (expenses) 28,769 (38,005) 64,021 (8,072) 1,750 3,430 51,893

Income (loss) before contributions and transfers 1,814,395 (278,000) 1,037,055 (277,145) 15,191 (560,823) 1,750,673

Transfers in - 491,069 - 60,129 - 1,200,000 1,751,198 Transfers out (354,737) - - - - - (354,737)

Change in net position 1,459,658 213,069 1,037,055 (217,016) 15,191 639,177 3,147,134

Total net position - beginning 3,896,301 2,614,207 13,993,597 1,796,073 224,667 73 22,524,918

Total net position - ending 5,355,959$ 2,827,276$ 15,030,652$ 1,579,057$ 239,858$ 639,250$ 25,672,052$

124


June 30, 2016

City of Edmond, OklahomaCombining Statement of Cash Flows

Other Enterprise FundsFor the Year Ended June 30, 2016

PWA Sanitation Fund


PWA Drainage Fund



CASH FLOWS FROM OPERATING ACTIVITIESReceipts from customers 9,141,646$ 1,078,431$ 1,853,964$ 2,204,870$ 63,524$ 272,467$ 14,614,902$ Payments to suppliers (5,889,952) (483,553) (1,005,018) (914,059) (34,087) (1,405,877) (9,732,546) Payments to employees (1,388,367) (599,312) (391,797) (1,036,858) (31,319) (42,686) (3,490,339) Interfund payments - - (222,073) - - - (222,073) Interfund receipts 310,071 - - - - 54,600 364,671

Net cash provided (used) by operating activities 2,173,398 (4,434) 235,076 253,953 (1,882) (1,121,496) 1,534,615

CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIESTransfers from other funds - 491,069 - 60,129 - 1,200,000 1,751,198 Transfer to other funds (354,737) - - - - - (354,737)

Net cash provided (used) by noncapital financing activities (354,737) 491,069 - 60,129 - 1,200,000 1,396,461

CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIESPurchase of capital assets (739) - (885,042) (58,886) - - (944,667) Principal paid on capital debt (25,015) (96,815) - (31,025) - - (152,855) Interest paid on capital debt (12,412) (69,238) - (22,188) - - (103,838)

Net cash provided (used) by capital and related financing activities (38,166) (166,053) (885,042) (112,099) - - (1,201,360)

CASH FLOWS FROM INVESTING ACTIVITIESPurchases of investments (1,731,802) (10,826) - (107,214) (5,872) (56,413) (1,912,127) Sale of investments - - 307,238 - - - 307,238 Interest and dividends 35,978 7,700 69,371 5,331 1,735 2,612 122,727

Net cash provided (used) by investing activities (1,695,824) (3,126) 376,609 (101,883) (4,137) (53,801) (1,482,162)

Net Increase (decrease) in cash and cash equivalents 84,671 317,456 (273,357) 100,100 (6,019) 24,703 247,554

Balances-beginning of year 465,263 538,475 1,019,114 223,357 28,548 38,415 2,313,172

Balances-end of year 549,934$ 855,931$ 745,757$ 323,457$ 22,529$ 63,118$ 2,560,726$

Reconciliation to Combining Statement of Net Position:Cash, including time deposits 549,934$ 25,327$ 745,757$ 63,506$ 22,529$ 63,118$ 1,470,171$ Restricted cash, including time deposits-current - 729,848 - 227,663 - - 957,511 Restricted cash, including time deposits-noncurrent - 100,756 - 32,288 - - 133,044

Total cash and cash equivalents, end of year 549,934 855,931 745,757 323,457 22,529 63,118 2,560,726

- - Reconciliation of Operating Income to Net Cash Provided by Operating Activities:Operating income (loss) 1,785,626$ (239,995)$ 973,034$ (269,073)$ 13,441$ (564,253)$ 1,698,780$ Adjustments to reconcile operating income (loss) to net cash provided by operating activities:

Depreciation expense 27,318 212,060 66,374 270,211 - - 575,963 Miscellaneous non-operating revenue (expense) - - (79) - - - (79)

Change in assets and liabilities: - Receivables, net 13,086 - (22,569) - - - (9,483) Inventories - - (280) - - (280) Due from other governments - - 170,116 - (287,654) (117,538) Due from other funds 293,155 - (118,818) - - 54,600 228,937 Accounts and other payables 7,976 18,082 (572,762) 64,660 (15,824) (153,089) (650,957) Due to other funds 16,916 - (103,255) - - - (86,339) Unearned revenue - - - - - (172,230) (172,230) OPEB obligation 10,380 2,774 2,059 6,019 174 171 21,577 Pension liability 9,134 2,796 2,700 5,267 221 (262) 19,856 Accrued compensated absences 9,807 (151) 8,392 7,033 106 1,221 26,408

Net cash provided by operating activities 2,173,398$ (4,434)$ 235,076$ 253,953$ (1,882)$ (1,121,496)$ 1,534,615

125


June 30, 2016

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.

126


June 30, 2016

City of Edmond, OklahomaCombining Statement of Net Position

Internal Service FundsJune 30, 2016

Group Insurance Fund

Vehicle Maintenance

FundLiability/Tort Claim Fund

Fleet Management

FundField Services

Fund

Administrative Support

Services Fund TotalASSETSCurrent assets:

Cash and cash equivalents 661,894$ 53,813$ 572,270$ 866,218$ 247,937$ 384,862$ 2,786,994$ Investments 5,896,264 479,386 3,761,655 7,716,423 2,208,673 3,408,821 23,471,222 Receivables:

Accrued interest 12,939 1,052 8,256 16,934 4,847 7,481 51,509 Due from other governments - - - - 211,227 6,000 217,227 Other receivables 21,255 205,320 - 158,851 - 6,000 391,426

Due from other funds - - - - - 18,112 18,112 Inventories - 70,697 - - 765,755 62,012 898,464

Total current assets 6,592,352 810,268 4,342,181 8,758,426 3,438,439 3,893,288 27,834,954 Non-current assets:

Capital Assets:Nondepreciable - - - - - 787,503 787,503 Depreciable, net of accumulated depreciation - - - 13,872,164 - 2,941,179 16,813,343

Total non-current assets - - - 13,872,164 - 3,728,682 17,600,846 Total assets 6,592,352 810,268 4,342,181 22,630,590 3,438,439 7,621,970 45,435,800

DEFERRED OUTFLOWS OF RESOURCESDeferred amounts related to pensions - 151,882 45,232 11,954 822,734 2,273,811 3,305,613


Accounts payable 287,661 40,840 49,877 47,964 192,383 137,900 756,625 Salaries payable - 28,167 - - 152,447 428,562 609,176 Compensated absences - 5,040 1,425 165 24,178 69,208 100,016 Claims and judgments 231,140 - 849,000 - - - 1,080,140

Total current liabilities 518,801 74,047 900,302 48,129 369,008 635,670 2,545,957 Non-current liabilities:

Compensated absences - 45,356 12,821 1,482 217,602 622,877 900,138 Net OPEB obligation - 15,483 3,725 824 92,197 206,286 318,515 Net pension liability - 302,558 90,104 23,711 1,638,935 4,525,093 6,580,401 Claims and judgments 77,046 - 1,766,000 - - - 1,843,046

Total non-current liabilities 77,046 363,397 1,872,650 26,017 1,948,734 5,354,256 9,642,100 Total liabilities 595,847 437,444 2,772,952 74,146 2,317,742 5,989,926 12,188,057

DEFERRED INFLOW OF RESOURCESDeferred amounts related to pensions - 4,040 5,630 1,140 - 10,810

NET POSITIONInvested in capital assets, net of related debt - - - 13,872,164 - 3,728,682 17,600,846 Unrestricted 5,996,505 520,666 1,608,831 8,696,234 1,942,291 177,173 18,941,700

Total Net Position 5,996,505$ 520,666$ 1,608,831$ 22,568,398$ 1,942,291$ 3,905,855$ 36,542,546$

127


June 30, 2016

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

Internal Service FundsFor the Year Ended June 30, 2016


Vehicle Maintenance


Fleet Management

FundField Services

Fund


Services Fund TotalOPERATING REVENUES

Charges for services 9,176,247$ 2,775,572$ 1,769,674$ 3,231,353$ 11,070,194$ 16,796,812$ 44,819,852$ Operating grants and contributions 4,647 - - - 1,424,934 6,000 1,435,581 Miscellaneous - - 245,664 - - - 245,664

Total operating revenues 9,180,894 2,775,572 2,015,338 3,231,353 12,495,128 16,802,812 46,501,097

OPERATING EXPENSESPersonal services - 847,504 255,175 62,606 4,644,069 12,786,514 18,595,868 Materials and supplies 625 1,506,131 4,375 3,256 1,129,179 785,452 3,429,018 Other services and charges 1,356,110 502,281 284,961 162,660 5,570,742 5,372,935 13,249,689 Insurance premium expense 646,831 - 720,717 - - - 1,367,548 Claims expense 7,275,964 - 600,544 - - - 7,876,508 Depreciation - - - 1,991,160 - 484,151 2,475,311

Total operating expenses 9,279,530 2,855,916 1,865,772 2,219,682 11,343,990 19,429,052 46,993,942 Operating income (loss) (98,636) (80,344) 149,566 1,011,671 1,151,138 (2,626,240) (492,845)

NON-OPERATING REVENUES (EXPENSES)Interest and investment revenue 54,602 4,769 33,925 69,026 12,393 45,950 220,665 Loss on sale of capital assets - - - (54,598) - - (54,598) Miscellaneous revenue 31,046 1,135 - 19,460 - 136,014 187,655

Total non-operating revenue (expenses) 85,648 5,904 33,925 33,888 12,393 181,964 353,722

Income (loss) before contributions and transfers (12,988) (74,440) 183,491 1,045,559 1,163,531 (2,444,276) (139,123)

Transfers in - - - - - - - Transfers out - - - - - - -

Change in net position (12,988) (74,440) 183,491 1,045,559 1,163,531 (2,444,276) (139,123)

Total net position - beginning 6,009,493 595,106 1,425,340 21,522,839 778,760 6,350,131 36,681,669

Total net position - ending 5,996,505$ 520,666$ 1,608,831$ 22,568,398$ 1,942,291$ 3,905,855$ 36,542,546$

128


June 30, 2016

City of Edmond, OklahomaCombining Statement of Cash Flows

Internal Service FundsFor the Year Ended June 30, 2016


Vehicle Maintenance


Fleet Management

FundField Services

Fund


Services Fund TotalCASH FLOWS FROM OPERATING ACTIVITIES

Receipts from customers 9,294,453$ 2,768,441$ 2,137,720$ 3,091,962$ 12,283,901$ 17,100,033$ 46,676,510$ Payments to suppliers (1,891,173) (817,777) (990,191) (293,837) (6,703,509) (6,240,225) (16,936,712) Payments to employees - (1,964,031) (248,333) (61,356) (4,462,384) (12,313,353) (19,049,457) Claims and judgments paid (7,334,309) - (722,544) - - - (8,056,853) Interfund payments - - - - - (6,210) (6,210)

Net cash provided (used) by operating activities 68,971 (13,367) 176,652 2,736,769 1,118,008 (1,459,755) 2,627,278

CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIESPurchase of capital assets - - - (1,966,398) - (231,831) (2,198,229) Proceeds from sale of capital assets - - - 17,392 - - 17,392

Net cash provided (used) by capital and related financing activities - - - (1,949,006) - (231,831) (2,180,837)

CASH FLOWS FROM INVESTING ACTIVITIESPurchases of investments (267,834) (5,486) (285,977) (957,824) (1,049,931) - (2,567,052) Sale of investments - - - - - 1,355,838 1,355,838 Interest and dividends 38,336 3,423 23,718 48,640 10,076 34,302 158,495

Net cash provided (used) by investing activities (229,498) (2,063) (262,259) (909,184) (1,039,855) 1,390,140 (1,052,719)

Net Increase (decrease) in cash and cash equivalents (160,527) (15,430) (85,607) (121,421) 78,153 (301,446) (606,278)

Balances-beginning of year 822,421 69,243 657,877 987,639 169,784 686,308 3,393,272

Balances-end of year 661,894$ 53,813$ 572,270$ 866,218$ 247,937$ 384,862$ 2,786,994$

Reconciliation to Combining Statement of Net Position:Cash, including time deposits 661,894$ 53,813$ 572,270$ 866,218$ 247,937$ 384,862$ 2,786,994$

Total cash and cash equivalents, end of year 661,894$ 53,813$ 572,270$ 866,218$ 247,937$ 384,862$ 2,786,994$

Reconciliation of Operating Income to Net Cash Provided by Operating Activities:Operating income (loss) (98,636)$ (80,344)$ 149,566$ 1,011,671$ 1,151,138$ (2,626,240)$ (492,845)$ Adjustments to reconcile operating income (loss) to net cash provided by operating activities:

Depreciation expense - - - 1,991,160 - 484,151 2,475,311 Miscellaneous non-operating revenue (expense) 31,046 1,135 - 19,460 - 136,014 187,655

Change in assets and liabilities:Receivables, net - - - - - - - Other receivable 82,513 (8,266) 122,382 (158,851) (211,227) 167,207 (6,242) Inventories - 46,868 - - 20,208 (11,195) 55,881 Deposits with TPA - - - - - - - Prepaid expenses - - - - - - - Due from other governments - - - - - (6,000) (6,000) Due from other funds - - - - - (6,210) (6,210) Deferred outflows related to pension - (88,764) (24,302) (7,121) (490,741) (1,360,063) (1,970,991) Accounts and other payables 112,393 16,299 23,448 (126,373) 76,841 217,670 320,278 Claims liability (58,345) - (122,000) - - - (180,345) Due to other funds - - - - - - - Customer meter deposits payable - - - - - - - OPEB obligation - 6,012 1,216 285 33,579 77,978 119,070 Pension liability - 167,503 45,320 13,370 928,561 2,569,926 3,724,680 Deferred inflows related to pension (73,791) (20,179) (5,960) (408,243) (1,126,747) (1,634,920) Accrued compensated absences - (19) 1,201 (872) 17,892 23,754 41,956.00

Net cash provided by operating activities 68,971$ (13,367)$ 176,652$ 2,736,769$ 1,118,008$ (1,459,755)$ 2,627,278$

129


June 30, 2016

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.

130


June 30, 2016

City of Edmond, OklahomaCombining Statement of Fiduciary Assets and Liabilities

Agency FundsJune 30, 2016

Sidewalk and Driveway

Escrow Fund

C.L.E.E.T. PENALTY

ASSESSMENT FUND TOTALS

ASSETSCash and cash equivalents 613,745$ 40,117$ 653,862$

Total assets 613,745$ 40,117$ 653,862$

LIABILITIES Accounts payable -$ 18,534$ 18,534$ Refundable deposits 613,745 21,583 635,328

Total liabilities 613,745$ 40,117$ 653,862$

BALANCE JUNE 30, 2015 ADDITIONS DEDUCTIONS

BALANCE JUNE 30, 2016

SIDEWALK AND DRIVEWAY ESCROWAssets:

Cash and cash equivalents 1,022,396$ $ 1,064,790 $ 1,473,441 613,745$

Total assets 1,022,396$ 1,064,790$ 1,473,441$ 613,745$

LIABILITIES Refundable deposits 1,022,396$ $ 1,064,790 $ 1,473,441 613,745$

Total liabilities 1,022,396$ 1,064,790$ 1,473,441$ 613,745$

C.L.E.E.T. PENALTY ASSESSMENT FUNDAssets:

Cash and cash equivalents 37,626$ $ 162,747 $ 160,256 40,117$

Total assets 37,626$ 162,747$ 160,256$ 40,117$

LIABILITIES Accounts payable 15,963$ $ 151,215 $ 148,644 18,534$ Due to other governments 21,663 11,532 11,612 21,583

Total liabilities 37,626$ 162,747$ 160,256$ 40,117$

TOTALS-ALL AGENCY FUNDSAssets:

Cash and cash equivalents 1,060,022$ 1,227,537$ 1,633,697$ 653,862$

Total assets 1,060,022$ 1,227,537$ 1,633,697$ 653,862$

LIABILITIES Accounts payable 15,963$ 151,215$ 148,644$ 18,534$ Due to other governments 21,663 11,532 11,612 21,583 Refundable deposits 1,022,396 1,064,790 1,473,441 613,745

Total liabilities 1,060,022$ 1,227,537$ 1,633,697$ 653,862$

City of Edmond, OklahomaCombining Statement of Changes in Assets and Liabilities

Agency FundsFor the fiscal year ended June 30, 2016

131


June 30, 2016

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.

132


June 30, 2016

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

General Sales Revenue Note 2014, and 2014B and 2015

GROSS REVENUES OF THE SYSTEM: Charges for services 137,389,113$ 137,389,113$ 137,389,113$ Intergovernmental 2,219 2,219 2,219 Investment income 833,399 833,399 833,399 Miscellaneous income 178,680 178,680 178,680

Total Gross Revenues of the System 138,403,411 138,403,411 138,403,411

OPERATION AND MAINTENANCE EXPENSES: Personal services 8,778,230 8,778,230 8,778,230 Materials and supplies 2,200,067 2,200,067 2,200,067 Maintenance, operations and contractual services 83,685,034 83,685,034 83,685,034 Debt service on prior lien utility system revenue bonds - 8,551,554 -

Total Operation and Maintenance Expenses 94,663,331 103,214,885 94,663,331

Total Gross Revenues of the System in Excess 43,740,080 35,188,526 43,740,080 of Total Operation and Maintenance Expenses

Add: Pledged sales tax revenue 33,612,108 12,683,814 12,683,814

Net Revenues of the System plus pledged sales tax revenue 77,352,188$ 47,872,340$ 56,423,894$

Maximum Debt Service Requirements on Liabilities 6,954,274$ 7,455,266$ 6,954,274$

Computed Coverage 1112% 642% 811% 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 and 2015 series bonds and OWRB notes payable in fiscal year 2025.

133


June 30, 2016


SCHEDULE OF RESERVE ACCOUNT BALANCES

JUNE 30, 2016

RESERVE EXCESS BALANCE

REQUIRED BALANCE OVER REQUIRED

RESERVES JUNE 30, 2016 RESERVES

Required Balance: Series 2010 Sales Tax and Utility Revenue Bonds 1,390,000$ 1,482,569$ 92,569$ Series 2012 Sales Tax and Utility Revenue Bonds 1,325,500 1,415,357 89,857 Series 2013 Sales Tax and Utility Revenue Bonds 1,434,939 1,442,970 8,031 Series 2014 Sales Tax and Utility Revenue Bonds 2,496,505 2,618,245 121,740 Series 2014B Sales Tax and Utility Revenue Bonds 2,245,000 2,337,540 92,540 Series 2015 Utility Revenue Bonds 2,269,935 2,300,156 30,221

134


June 30, 2016

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.

135


June 30, 2016

HISTORIC PRESERVATION

TRUST

ASSETS

Cash and cash equivalents 92,010$

Total assets 92,010$

LIABILITIES AND FUND BALANCES

Fund Balances:

Unreserved 92,010$

Total liabilities and fund balances 92,010$


Fund balance 92,010$

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. 195,230

Net position of component unit 287,240$


BALANCE SHEET


June 30, 2016

136


June 30, 2016

HISTORIC PRESERVATION

TRUST

Revenues:

Investment income 146$

Miscellaneous 2,500

Total Revenues 2,646

Expenditures:

Current:

Culture, parks and recreation 24,586

Total Expenditures 24,586

Revenues over (under) expenditures (21,940)

Other financing sources:

Payment from the City of Edmond 25,005

Net change in fund balance 3,065

Fund balances - beginning 88,944

Fund balances - ending 92,009$

Reconciliation to Statement of Activities:

Net Change in fund balance 3,065$

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 (28,503)

Change in net position - component unit (25,438)$


STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE


FOR THE FISCAL YEAR ENDED June 30, 2016

137


June 30, 2016

THIS PAGE INTENTIONALLY LEFT BLANK

138

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.

139

CITY

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BY C

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2008

2009

2010

2011

2012

2013

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2015

2016

Gov

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Inve

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TAB

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2008

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2012

2013

2014

2015

2016

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:

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10

7,04

3,57

1

11

3,34

4,19

5

11

5,31

6,00

0

11

3,01

8,06

5

To

tal p

rimar

y go

vern

men

t exp

ense

s13

9,15

4,60

5$

14

3,90

6,01

0$

15

3,08

6,14

2$

16

3,35

7,27

2$

16

4,78

8,17

5$

17

0,53

8,68

1$

17

7,82

9,37

7$

18

6,47

4,40

8$

19

0,29

7,33

2$

19

5,75

8,97

2$

Prog

ram

Rev

enue

sG

over

nmen

t act

iviti

es:

C

harg

es fo

r ser

vice

s:

Gen

eral

gov

ernm

ent

6,45

2,85

2$

7,30

8,11

3$

7,10

8,36

8$

7,

370,

016

$

7,60

4,19

3$

7,

353,

230

$

7,42

1,87

2$

7,

934,

422

$

7,94

5,57

7$

7,25

9,77

3$

P

ublic

Saf

ety

1,31

0,15

8

1,18

4,31

2

821,

340

83

1,72

0

946,

769

1,

220,

778

1,24

6,61

0

1,

267,

798

1,21

3,99

1

1,18

8,47

3

S

treet

s an

d hi

ghw

ays

9,03

0

7,

650

104,

770

22

8,09

7

7,20

0

84

,870

11

,670

10

,200

10

1,87

7

23

,422

Cul

tura

l, pa

rks

and

recr

eati o

n41

9,22

4

53

8,32

2

53

8,93

7

514,

150

71

9,75

7

528,

606

53

6,74

3

518,

039

41

0,00

1

16

1,86

3

Hea

lth a

nd w

elfa

re-

-

-

68

9,33

3

1,16

7,68

7

1,

140,

753

1,13

5,96

2

93

1,94

7

916,

854

869,

997

O

pera

ting

gran

ts a

nd c

ontri

butio

ns5,

233,

942

4,

902,

301

4,

036,

616

4,87

8,84

7

5,

547,

074

5,47

5,33

0

5,

682,

716

5,49

8,58

4

5,

867,

612

6,

040,

401

Cap

ital g

rant

s an

d co

ntrib

utio

ns16

,974

,830

5,

968,

765

17

,642

,392

16

,112

,303

5,

176,

962

5,23

2,89

4

10

,668

,747

7,

002,

940

10,2

27,9

19

10

,189

,610

Tota

l gov

ernm

enta

l act

iviti

es p

rogr

am re

venu

es30

,400

,036

19

,909

,463

30

,252

,423

30

,624

,466

21

,169

,642

21

,036

,461

26

,704

,320

23

,163

,930

26

,683

,831

25,7

33,5

39

(Con

tinue

d)

141

CIT

Y O

F ED

MO

ND

, OK

LAH

OM

A

TA

BLE

2

(C

ontin

ued)

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

Busi

ness

-type

act

iviti

es:

C

harg

es fo

r ser

vice

s:

Ele

ctric

ope

ratio

ns59

,686

,400

$

57

,936

,121

$

64

,787

,581

$

63

,074

,399

$

65

,175

,715

$

71

,935

,412

$

70

,744

,562

$

76

,674

,353

$

87

,756

,233

$

91,9

57,4

03$

Wat

er o

pera

tions

16,0

65,4

10

15,8

76,9

90

16,1

32,8

35

15,3

09,8

66

20,6

60,4

67

22,7

01,4

66

22,8

91,1

81

22,9

31,3

46

22,6

66,7

69

25

,066

,076

W

aste

wat

er o

pera

tions

6,36

8,71

2

6,88

7,90

6

6,56

2,67

2

6,

231,

244

7,15

0,97

6

8,

554,

554

9,92

3,75

1

11

,423

,965

12

,531

,903

13,3

77,5

84

San

itatio

n op

erat

ions

6,08

9,94

0

6,22

1,07

0

7,00

5,32

6

7,

246,

382

7,40

9,20

5

7,

577,

025

7,81

3,51

3

8,

065,

999

8,95

5,70

1

9,12

8,56

0

L

ake

oper

atio

ns69

4,52

3

64

0,31

6

77

0,28

8

764,

675

86

8,45

6

880,

719

84

6,47

1

963,

845

94

2,66

1

1,

078,

431

Dra

inag

e op

erat

ions

841,

717

1,57

1,29

8

1,57

9,93

5

1,

630,

168

1,62

5,59

7

1,

758,

988

1,68

4,89

9

1,

703,

753

1,76

9,51

3

1,87

6,53

3

G

olf c

ours

e op

erat

ions

1,63

4,28

3

1,73

1,59

4

1,80

9,86

8

1,

711,

166

1,87

9,25

3

1,

997,

414

2,01

2,05

5

1,

997,

086

2,02

4,18

7

2,01

8,43

9

C

oope

rativ

e pu

rcha

sing

ser

vice

111,

752

70,0

85

63,6

93

53,6

41

49,2

40

80,1

90

82,3

26

74,3

89

89,5

16

63,5

24

T

rans

porta

tion

oper

atio

nsⁱ

-

-

-

-

-

-

-

290,

470

22

6,13

6

26

2,86

9

Ope

ratin

g gr

ants

and

con

tribu

tions

-

107,

870

82,1

17

2,71

7

22

5,48

8

72,9

75

921,

297

32

8,56

8

258,

503

308,

943

C

apita

l gra

nts

and

cont

ribut

ions

14,0

79,7

70

5,36

0,80

5

8,30

9,38

1

3,

537,

407

3,64

9,62

0

1,

665,

577

6,98

9,45

4

4,

189,

645

8,61

0,40

7

6,49

2,64

8

Tota

l bus

ines

s-ty

pe a

ctiv

ities

pro

gram

reve

nues

105,

572,

507

96,4

04,0

55

107,

103,

696

99,5

61,6

65

108,

694,

017

117,

224,

320

123,

909,

509

128,

643,

419

145,

831,

529

151,

631,

010

Tota

l prim

ary

gove

rnm

ent p

rogr

am re

venu

es13

5,97

2,54

3$

11

6,31

3,51

8$

13

7,35

6,11

9$

13

0,18

6,13

1$

12

9,86

3,65

9$

13

8,26

0,78

1$

15

0,61

3,82

9$

15

1,80

7,34

9$

17

2,51

5,36

0$

17

7,36

4,54

9$

Net

(Exp

ense

)/Rev

enue

Gov

ernm

ent a

ctiv

ities

(24,

153,

119)

$

(37,

462,

136)

$

(32,

583,

094)

$

(4

0,17

1,96

0)$

(44,

877,

664)

$

(4

6,46

6,19

1)$

(44,

081,

486)

$

(4

9,96

6,28

3)$

(4

9,96

6,28

3)$

(5

7,00

7,36

8)$

Bu

sine

ss-ty

pe a

ctiv

ities

20,9

71,0

57

9,86

9,64

4

16,8

53,0

71

7,00

0,81

9

9,

953,

148

14,1

88,2

91

16,8

65,9

38

15,2

99,2

24

30,5

15,5

29

38

,612

,945

Tota

l prim

ary

gove

rnm

ent n

et e

xpen

se(3

,182

,062

)$

(27,

592,

492)

$

(15,

730,

023)

$

(3

3,17

1,14

1)$

(34,

924,

516)

$

(3

2,27

7,90

0)$

(27,

215,

548)

$

(3

4,66

7,05

9)$

(1

9,45

0,75

4)$

(1

8,39

4,42

3)$

Gen

eral

Rev

enue

s an

d O

ther

Cha

nges

in N

et A

sset

sG

over

nmen

t act

iviti

es:

T

axes

:

Sa

les

and

use

taxe

s - G

ener

al g

over

nmen

t26

,208

,998

$

27

,558

,790

$

29

,572

,916

$

27

,484

,883

$

28

,917

,747

$

31

,299

,351

$

34

,403

,578

$

36

,065

,782

$

37

,777

,579

$

38,1

86,5

35$

Sa

les

and

use

taxe

s - P

ublic

saf

ety

4,52

7,51

2

4,74

2,71

0

5,01

4,94

7

4,

748,

676

4,91

4,56

4

5,

366,

325

5,87

0,77

7

6,

094,

618

6,31

8,87

2

6,34

1,90

7

Sale

s an

d us

e ta

xes

- Par

k an

d re

crea

tion

1,50

9,17

1

1,58

0,90

4

1,67

1,64

9

1,

582,

892

1,63

8,18

8

1,

788,

775

1,95

6,92

6

2,

031,

539

2,10

6,29

1

2,11

3,96

9

Sale

s an

d us

e ta

xes

- Cap

ital i

mpr

ovem

ents

9,05

5,02

4

9,48

5,42

0

10,0

29,8

94

9,49

7,35

2

9,

829,

129

12,7

98,3

91

19,5

69,2

55

20,3

15,3

94

21,0

62,9

07

21

,139

,690

Fran

chis

e an

d pu

blic

ser

vice

taxe

s1,

699,

807

1,

866,

394

1,

961,

519

1,88

6,70

0

2,

304,

910

2,10

6,55

1

2,

157,

871

2,26

9,71

7

2,

327,

317

2,

281,

490

H

otel

/mot

el ta

xes

336,

159

417,

905

364,

232

34

5,20

8

344,

968

39

1,66

4

421,

979

44

3,66

3

453,

376

464,

362

Inte

rgov

ernm

enta

l rev

enue

not

rest

ricte

d to

spe

cific

74

9,10

6

76

1,72

0

69

4,96

2

675,

890

98

1,49

2

894,

306

1,

101,

004

1,07

8,77

7

1,

158,

392

1,

060,

789

In

vest

men

t inc

ome

4,88

2,71

4

4,22

9,09

1

2,51

5,20

7

1,

294,

216

1,29

9,27

1

82

2,61

0

608,

693

82

5,92

7

815,

222

933,

373

Mis

cella

neou

s22

8,03

0

28

4,23

7

21

6,76

3

252,

382

24

2,19

6

293,

668

34

6,99

8

450,

357

72

7,65

2

1,

015,

926

G

ain

(loss

) on

sale

of c

apita

l ass

ets

-

-

(1,6

96,4

94)

-

-

-

-

-

-

-

Tra

nsfe

rs-In

tern

al a

ctiv

ity1,

839,

066

1,

604,

942

1,

733,

927

1,75

1,79

9

1,

066,

444

3,47

5,22

6

2,

795,

080

1,55

8,62

0

50

1,07

4

(6

69,6

72)

Tota

l gov

ernm

enta

l act

iviti

es51

,179

,268

52

,623

,262

52

,079

,522

49

,519

,998

51

,538

,909

59

,236

,867

69

,232

,161

71

,134

,394

73

,248

,682

72,8

68,3

69

Bu

sine

ss-ty

pe a

ctiv

ities

:

Inve

stm

ent e

arni

ngs

2,60

3,50

1

2,82

9,72

0

1,92

5,30

1

1,

113,

106

991,

181

78

0,70

9

481,

283

79

7,04

6

659,

037

917,

706

M

isce

llane

ous

9,77

1

18

0,99

8

15

8,65

8

1,02

9,22

9

17

6,35

7

506,

071

26

0,12

0

284,

533

17

1,40

2

-

S

peci

al it

em -

gain

on

asse

t im

pairm

ent

1,13

0,31

6

294,

193

(64,

102)

-

-

-

-

-

-

-

Tra

nsfe

rs -

Inte

rnal

act

ivity

(1,8

39,0

66)

(1

,604

,942

)

(1,7

33,9

27)

(1

,751

,799

)

(1,0

66,4

44)

(3

,475

,226

)

(2,7

95,0

80)

(1

,558

,620

)

(501

,074

)

66

9,67

2

To

tal b

usin

ess-

type

act

iviti

es(7

02,2

21)

1,69

9,96

9

285,

930

39

0,53

6

101,

094

(2

,188

,446

)

(2,0

53,6

77)

(4

77,0

41)

329,

365

1,58

7,37

8

Tota

l prim

ary

gove

rnm

ent

50,4

77,0

47$

54,3

23,2

31$

52,3

65,4

52$

49,9

10,5

34$

51,6

40,0

03$

57,0

48,4

21$

67,1

78,4

84$

70,6

57,3

53$

73,5

78,0

47$

74

,455

,747

$

Cha

nge

in N

et P

ositi

onG

over

nmen

t act

iviti

es27

,026

,149

$

15

,161

,126

$

19

,496

,428

$

9,

348,

038

$

6,66

1,24

5$

12

, 770

,676

$

25

,150

,675

$

21

,168

,111

$

24

,951

,181

$

15,8

61,0

01$

Bu

sine

ss-ty

pe a

ctiv

ities

33,2

85,5

06

11,5

69,6

13

17,1

39,0

01

7,39

1,35

5

10

,054

,242

11

,999

,845

14

,812

,261

14

,822

,183

30

,844

,894

40,2

00,3

23

To

tal p

rimar

y go

vern

men

t60

,311

,655

$

26

,730

,739

$

36

,635

,429

$

16

,739

,393

$

16

,715

,487

$

24

,770

,521

$

39

,962

,936

$

35

,990

,294

$

55

,796

,075

$

56,0

61,3

24$

* 201

4 Tr

ansp

orta

tion

oper

atio

ns w

as e

stab

lishe

d as

a B

TA in

stea

d of

Gov

ernm

enta

l Act

ivity

142

CIT

Y O

F ED

MO

ND

, OK

LAH

OM

AFU

ND

BAL

ANC

ES, G

OVE

RN

MEN

TAL

FUN

DS

Last

Ten

Fis

cal Y

ears

TAB

LE 3

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

Gen

eral

Fun

d R

eser

ved

3,92

9,62

7$

3,

771,

989

$

3,57

3,22

8$

1,

770,

558

$

-$

-$

-$

-$

-$

-$

Unr

eser

ved

4,19

2,77

3

2,

841,

745

2,00

5,53

4

4,

985,

485

-

-

-

-

-

-

Res

trict

ed-

-

-

-

1,

637,

707

2,10

7,21

7

2,

644,

344

3,19

7,75

3

2,

962,

254

2,88

9,48

1

C

omm

itted

-

-

-

-

-

-

-

578,

249

-

-

A

ssig

end

-

-

-

-

2,70

2,40

4

1,

643,

231

1,82

2,13

8

1,

434,

645

1,94

7,13

7

1,

120,

870

Una

ssig

ned

-

-

-

-

5,15

0,24

8

5,

904,

708

6,77

0,66

7

7,

375,

504

6,05

6,05

8

3,

142,

639

Tota

l gen

eral

fund

8,43

8,45

4$

8,

122,

400

$

6,61

3,73

4$

5,

578,

762

$

6,75

6,04

3$

9,

490,

359

$

11,2

37,1

49$

12

,586

,151

$

10,9

65,4

49$

7,

152,

990

$

All O

ther

Gov

ernm

enta

l Fun

ds R

eser

ved

8,49

9,92

5$

7,

229,

922

$

7,32

9,92

2$

7,

314,

772

$

-$

-$

-$

-$

-$

-$

Res

trict

ed-

-

-

-

65

,078

,915

63,3

31,4

00

74

,827

,114

71,3

39,0

26

61

,708

,614

59,2

41,7

68

C

omm

itted

-

-

-

-

2,87

9

3,61

3

7,35

2

11,7

33

11

,530

8,90

2

Ass

igne

d-

-

-

-

1,

617,

875

1,90

5,77

1

3,

593,

792

4,70

6,93

9

5,

077,

958

5,86

7,85

3

U

nass

igne

d-

-

-

-

-

-

-

-

-

(1

,999

,113

)

U

nres

erve

d, re

porte

d in

:

Des

igna

ted

23,9

89,7

52

24

,031

,157

22,3

14,0

64

32

,566

,108

-

-

-

-

-

-

U

ndes

igna

ted

41,9

02,7

06

35

,556

,974

35,1

21,3

29

-

-

-

-

-

-

-

Spe

cial

reve

nue

fund

s3,

454,

075

5,18

4,51

5

4,

202,

565

9,73

3,24

5

-

-

-

-

-

-

Deb

t ser

vice

fund

s(3

,701

)

5,

453

-

-

-

-

-

-

-

-

Cap

ital p

roje

ct fu

nds

2,37

1,82

9

2,

606,

709

1,61

9,90

6

19

,253

,710

-

-

-

-

-

-

Tota

l all

othe

r gov

ernm

enta

l fun

ds82

,265

,817

$

80,2

14,5

86$

74

,614

,730

$

70,5

87,7

86$

68

,867

,835

$

65,2

40,7

84$

78

,428

,258

$

76,0

57,6

98$

66

,798

,102

$

63,1

19,4

10$

GR

AND

TO

TAL

90,7

04,2

71$

88

,336

,986

$

81,2

28,4

64$

76

,166

,548

$

75,6

23,8

78$

74

,731

,143

$

89,6

65,4

07$

88

,643

,849

$

77,7

63,5

51$

70

,272

,400

$

NO

TE:

Begi

nnin

g in

FY

2011

the

City

impl

emen

ted

GAS

B St

atem

ent 5

4, c

hang

ing

the

cate

gorie

s of

Fun

d Ba

lanc

e

143

CIT

Y O

F ED

MO

ND

, OK

LAH

OM

AC

HAN

GES

IN F

UN

D B

ALAN

CES

, GO

VER

NM

ENTA

L FU

ND

SLa

st T

en F

isca

l Yea

rsTA

BLE

4

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

Rev

enue

s

Sale

s an

d us

e ta

xes

41,3

00,7

05$

43,3

67,8

24$

46

,289

,406

$

43,3

13,8

03$

45

,299

,628

$

51,2

52,8

42$

61

,800

,536

$

64,5

07,3

33$

67

,265

,649

$

67,7

82,1

01$

Fran

chis

e an

d pu

blic

ser

vice

taxe

s1,

735,

492

1,86

5,47

2

1,99

5,83

1

1,88

5,28

4

2,34

1,30

5

2,10

6,55

1

2,19

9,48

8

2,31

1,15

0

2,37

1,75

0

2,28

1,49

0

Ad v

alor

em ta

xes

107,

529

93

,730

-

-

-

-

-

-

-

Hot

el/m

otel

taxe

s33

6,15

9

417,

905

364,

232

345,

208

344,

968

391,

664

421,

979

443,

663

453,

376

464,

362

Inte

rgov

ernm

enta

l13

,106

,317

8,

251,

646

7,

292,

287

9,

707,

740

6,

776,

753

10

,805

,328

14,0

86,7

17

10

,904

,286

9,68

6,17

1

7,45

0,84

3

Cha

rges

for s

ervi

ces

4,53

2,81

1

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

Fi

nes

and

forfe

iture

s2,

368,

946

2,42

4,60

0

2,37

5,68

7

2,09

7,68

1

2,43

6,20

2

2,06

8,17

0

2,05

3,93

1

2,09

9,73

5

1,80

9,01

6

1,64

1,28

3

Lice

nses

and

per

mits

1,27

5,10

3

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

In

vest

men

t inc

ome

4,75

6,31

8

4,

304,

185

2,

402,

614

1,

641,

489

1,

271,

330

82

3,01

4

67

5,83

1

79

9,87

3

77

8,70

5

84

5,30

6

In

tere

st e

arni

ng o

n in

terfu

nd lo

an-

-

-

-

-

-

-

-

30,6

40

85,8

76

Mis

cella

neou

s61

7,04

0

401,

775

581,

882

462,

860

1,41

6,55

8

593,

336

747,

326

708,

441

1,02

1,23

6

1,48

8,92

7

Tota

l Rev

enue

s70

,136

,420

$

67

,666

,787

$

67,3

46,5

27$

66

,746

,811

$

67,7

19,7

59$

76

,199

,179

$

90,1

91,4

37$

90

,184

,612

$

92,0

57,6

40$

89

,764

,020

$

Expe

nditu

res:

Gen

eral

gov

ernm

ent

6,22

7,38

3$

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

$

Pu

blic

saf

ety

32,3

37,7

59

35,4

66,3

86

35

,183

,104

36,0

47,4

74

37

,953

,732

37,7

32,0

90

40

,600

,947

42,5

76,9

93

45

,697

,743

49,1

82,1

40

Stre

ets

and

high

way

s3,

963,

803

4,42

1,44

5

3,33

3,92

4

3,09

8,01

8

3,92

0,45

3

2,89

7,08

8

2,90

9,27

8

1,37

4,48

7

1,25

5,58

0

6,35

4,22

4

Cul

tura

l, Pa

rks

and

Rec

reat

ion

3,52

5,38

8

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

H

ealth

and

wel

fare

1,27

5,16

7

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

Ec

onom

ic d

evel

opm

ent

841,

541

-

-

-

-

29

6,68

5

-

-

-

576,

728

Cap

ital O

utla

y19

,352

,642

18

,500

,852

18,3

12,3

19

12

,507

,394

10,0

68,6

23

19

,112

,591

28,0

76,5

63

26

,031

,528

33,3

92,5

16

19

,924

,453

D

ebt s

ervi

ce:

Prin

cipa

l 3,

291,

203

3,41

1,20

3

3,44

5,00

0

3,59

5,00

0

3,37

0,00

0

4,09

5,00

0

4,49

5,00

0

5,98

8,51

4

5,32

8,28

6

6,36

4,85

1

Int

eres

t and

fisc

al c

harg

es3,

751,

922

3,63

2,01

9

3,49

8,72

4

3,35

5,70

5

2,79

7,59

2

2,85

2,35

4

2,45

8,64

7

2,50

9,62

9

2,36

3,88

0

2,16

4,75

9

Tota

l Exp

endi

ture

s74

,566

,808

$

76

,567

,011

$

74,4

80,4

08$

69

,441

,282

$

70,0

22,7

07$

80

,884

,047

$

94,0

88,7

37$

94

,240

,843

$

104,

930,

101

$

96,5

85,4

99$

Exce

ss o

f rev

enue

s o

ver(u

nder

) exp

endi

ture

s(4

,430

,388

)$

(8,9

00,2

24)

$

(7

,133

,881

)$

(2,6

94,4

71)

$

(2,3

02,9

48)

$

(4,6

84,8

68)

$

(3,8

97,3

00)

$

(4

,056

,231

)$

(1

2,87

2,46

1)$

(6

,821

,479

)$

Oth

er fi

nanc

ing

sour

ces(

uses

)

Tran

sfer

s in

52,5

20,2

18$

54,8

16,5

08$

60

,118

,792

$

54,7

42,9

16$

57

,700

,798

$

62,7

38,1

38$

69

,839

,503

$

68,9

79,4

32$

75

,715

,179

$

52,6

73,5

56$

Tran

sfer

s ou

t(5

0,45

7,11

5)

(5

3,02

4,80

7)

(5

8,04

6,82

4)

(5

2,59

1,11

7)

(5

5,06

4,38

3)

(5

9,34

7,35

6)

(6

6,98

5,90

5)

(6

7,43

5,11

2)

(75,

214,

105)

(53,

343,

228)

Tran

sfer

to e

scro

w a

gent

-

-

-

-

(1

3,66

7,11

6)

-

(12,

477,

058)

(12,

376,

172)

(2

1,73

1,62

8)

-

Bond

pre

miu

m-

-

-

-

-

-

1,32

5,22

4

1,22

1,61

9

2,46

7,71

7

-

Bo

nd p

roce

eds

-

-

-

-

13

,900

,000

-

26

,965

,000

12,6

44,9

06

20

,755

,000

-

To

tal o

ther

fina

ncin

g so

urce

s(us

es)

2,06

3,10

3$

1,

791,

701

$

2,

071,

968

$

2,

151,

799

$

2,

869,

299

$

3,

390,

782

$

18

,666

,764

$

3,03

4,67

3$

1,99

2,16

3$

(669

,672

)$

Net

cha

nge

in fu

nd b

alan

ces

(2,3

67,2

85)

$

(7

,108

,523

)$

(5,0

61,9

13)

$

(5

42,6

72)

$

56

6,35

1$

(1

,294

,086

)$

14

,769

,464

$

(1,0

21,5

58)

$

(10,

880,

298)

$

(7,4

91,1

51)

$

Deb

t ser

vice

as

a pe

rcen

tage

of

non

capi

tal e

xpen

ditu

res

14.7

%13

.3%

12.6

%13

.4%

12.0

%11

.2%

8.9%

13.8

%9.

9%11

.1%

144

AdH

otel

/Fi

scal

Valo

rem

Sale

sU

seFr

anch

ise

Liqu

orM

otel

Year

Tax

Tax

Tax

Tax

Tax

Tax

Tota

ls

2006

106,

031

39

,238

,438

2,

062,

267

1,69

9,80

7

37

,650

33

6,15

9

43,4

80,3

52

2007

92,6

92

41,1

03,4

89

2,26

4,33

5

1,

836,

994

29,4

00

417,

905

45

,744

,815

2008

-

43,4

62,8

75

2,82

6,53

1

1,

924,

619

36,9

00

364,

232

48

,615

,157

2009

-

41,1

55,1

92

2,15

8,61

1

1,

848,

384

36,9

00

345,

208

45

,544

,295

2011

-

42,5

92,8

91

2,70

6,73

7

2,

301,

455

39,8

50

344,

968

47

,985

,901

20

12-

48,5

73,8

89

2,67

8,95

3

2,

066,

159

40,3

92

391,

664

53

,751

,057

2013

-

58

,707

,772

3,

092,

764

2,11

6,25

4

41

,617

42

1,97

9

64,3

80,3

86

2014

-

60

,946

,182

3,

561,

151

2,22

8,28

4

41

,433

44

3,66

3

67,2

20,7

13

2015

-

63

,188

,721

4,

076,

928

2,28

2,88

4

44

,433

45

3,37

6

70,0

46,3

42

2016

-

63

,419

,072

4,

363,

029

2,23

1,85

7

49

,633

46

4,36

2

70,5

27,9

53

CIT

Y O

F ED

MO

ND

, OK

LAH

OM

AG

OVE

RN

MEN

TAL

ACTI

VITI

ES T

AX R

EVEN

UES

BY

SOU

RC

ELa

st T

en F

isca

l Yea

rsTA

BLE

5

145

TAB

LE 6

2008

2009

2010

2011

2012

2013

2014

2015

2016

34

,186

,769

$

38,1

74,1

03$

37,6

54,6

81$

39,4

50,4

23$

44

,917

,923

$ 42

,678

,657

$

45,4

19,0

73$

49

,882

,043

$

54,3

44,4

01$

17,1

87,6

60

18

,854

,931

17

,716

,150

17

,706

,025

20,1

10,9

14

19,8

14,0

31

21

,837

,857

20,8

54,4

63

26

,186

,761

974,

507

963,

824

859,

249

846,

672

87

9,90

7

855,

677

92

0,36

1

779,

163

1,13

6,85

3

Oth

er

5,

288,

332

5,

710,

357

5,

364,

308

5,

664,

118

6,02

9,79

4

5,

806,

358

6,57

8,83

1

6,

619,

510

8,

267,

848

To

tals

57

,637

,268

$

63,7

03,2

16$

61,5

94,3

88$

63,6

67,2

37$

71

,938

,538

$ 69

,154

,723

$

74,7

56,1

22$

78

,135

,179

$

89,9

35,8

63$

Sour

ce: C

ity o

f Edm

ond

Util

ity C

usto

mer

Ser

vice

Dep

artm

ent

Not

e: D

ata

is p

rese

nted

onl

y fo

r yea

rs in

clud

ing

and

subs

eque

nt to

impl

emen

tatio

n of

GAS

B 44

.

Res

iden

tial

Com

mer

cial

Larg

e C

omm

erci

al &

Indu

stria

l

CIT

Y O

F ED

MO

ND

, OK

LAH

OM

AEL

ECTR

ICIT

Y R

EVEN

UE

BY

CU

STO

MER

TYP

ELA

ST N

INE

FISC

AL Y

EAR

S

146

LA

ST N

INE

YEAR

S

TAB

LE 7

Taxp

ayer

Rank

Valu

e%

of T

otal

Rank

Valu

e%

of

Tota

l

Rank

Valu

e%

of

Tota

l

Rank

Valu

e%

of

Tota

l

Rank

Valu

e%

of

Tota

l

Rank

Valu

e%

of

Tota

l

Rank

Valu

e%

of

Tota

lRank

Valu

e%

of

Tota

l

Rank

Valu

e%

of

Tota

l

Edm

ond

Publ

ic S

choo

ls2

1,60

8,32

9$

3.3%

32,

127,

093

$

3.

4%2

2,08

3,28

5$

2.7%

31,

693,

712

$

2.

7%2

1,95

7,44

4$

2.7%

21,

847,

810

$

2.

9%2

2,16

1,01

5$

3.

1%1

2,43

7,29

6$

3.3%

12,

577,

853

$

3.

3%

City

of E

dmon

d

11,

956,

377

$

3.

8%1

2,40

0,97

5$

3.5%

12,

185,

377

$

3.

2%1

2,04

9,56

7$

2.9%

12,

076,

083

$

2.

9%1

1,99

3,67

3$

3.1%

12,

307,

101

$

2.9%

22,

265,

985

$

3.

2%2

2,48

0,01

1$

3.2%

Uni

vers

ity o

f Cen

tral O

klah

oma

31,

539,

092

$

3.

4%2

2,19

4,29

9$

3.4%

32,

072,

185

$

2.

8%2

1,75

4,77

1$

2.5%

31,

789,

302

$

2.

5%3

1,71

9,86

1$

1.4%

31,

078,

747

$

2.3%

31,

825,

544

$

2.

4%3

1,85

1,21

8$

2.4%

Wal

mar

t4

737,

862

$

1.5%

497

1,94

7$

1.

3%4

827,

417

$

1.2%

475

9,20

8$

1.

2%4

851,

814

$

1.1%

477

9,49

5$

1.

1%4

806,

165

$

1.

3%4

1,04

6,62

2$

1.0%

481

1,53

5$

1.

0%

M

ercy

Hea

lth

583

3,12

5$

0.

9%5

674,

400

$

0.9%

H

omel

and

Stor

es5

334,

632

$

0.6%

739

4,95

7$

0.

5%8

337,

554

$

0.4%

828

1,05

9$

0.

4%9

306,

271

$

0.4%

929

2,13

8$

0.

5%9

363,

000

$

0.

6%7

491,

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kW0.

0565

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340.

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r (N

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ay)

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ffic

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nal

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hts

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ust

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arge

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En

ergy

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arge

Mon

thly

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ly K

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Mon

thly

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onth

ly K

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Mon

thly

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P

er in

ters

ecti

on (

250

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19.9

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rea

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765.

765.

76

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*(1

61kW

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o)11

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11.6

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.62

11.6

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40,0

00 L

umen

s-M

V L

amps

*(2

72kW

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14.5

14.5

14.5

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0 L

umen

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igh

Pre

ssur

e S

odiu

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41kW

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904.

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9

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00 L

umen

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igh

Pre

ssur

e S

odiu

m (

71kW

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o)6.

546.

826.

826.

826.

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s-H

PS

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irec

tion

al)

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kWh/

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11.2

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.85

10.8

510

.85

10.8

5

25,0

00 L

umen

s-H

igh

Pre

ssur

e S

odiu

m (

107k

Wh/

mo)

10.4

29.

899.

899.

899.

89

14,0

00 L

umen

s-H

ML

amps

(D

irec

tion

al)

(71k

Wh/

mo)

13.0

29.

509.

509.

509.

5

(C

onti

nu

ed)

(Con

tin

ued

)(C

onti

nu

ed)

(Con

tin

ued

)

151

EL

EC

TR

ICIT

Y R

AT

ES

LA

ST

NIN

E Y

EA

RS

T

AB

LE

8

Ed

m E

lec

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m E

lec

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m E

lec

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m E

lec

Ed

m E

lec

Rat

e C

ode

Rat

e S

ched

ule

Un

its

01/0

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01

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2010

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13-

11/1

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411

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2014

-11

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015

11/0

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11/1

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6

CIT

Y O

F E

DM

ON

D, O

KL

AH

OM

A

Sig

n &

Un

der

pas

s L

igh

tin

g F

ixtu

res

7,00

0 M

ercu

ry V

apor

***

(71

kW

h/m

o)10

.71

7.01

7.01

7.01

7.01

9,50

0 H

igh

Pre

ssur

e S

odiu

m (

41 k

Wh/

mo)

8.75

7.01

7.01

7.01

7.01

*Not

ava

ilab

le f

or n

ew in

stal

lati

ons

**W

hen

inst

alle

d on

Hig

h M

ast L

ight

ing

Sys

tem

***T

hese

are

ava

ilab

le f

or n

ew in

stal

lati

ons

only

as

sign

ligh

ting

Ad

dit

ion

al C

har

ges

S

tand

ard

Woo

d P

ole

Ext

enti

on o

f S

econ

dary

Cir

cuit

and

Woo

d P

ole

30 f

oot p

ole

2.85

3.17

3.17

3.17

3.17

35 f

oot p

ole

4.32

4.70

4.70

4.70

4.70

40 f

oot p

ole

5.10

5.47

5.47

5.47

5.47

45 f

oot p

ole

5.72

6.14

6.14

6.14

6.14

50 f

oot p

ole

6.18

6.72

6.72

6.72

6.72

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h w

irin

g re

quir

emen

t of

150

feet

or

less

Eac

h ad

diti

onal

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eet

3.25

3.36

3.36

3.36

3.36

S

tand

ard

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e ot

her

than

Woo

d

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

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10.8

211

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11.5

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11.5

2

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15.4

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16.2

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21.3

121

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1

Orn

amen

tal T

ype

Fix

ture

s

*7,0

00 L

umen

MV

w 1

9' S

teel

Pol

e (7

1 kW

h/m

o)10

.96

11.9

611

.96

11.9

611

.96

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0 H

PS

w 1

9' S

teel

Pol

e (4

1 kW

h/m

o)10

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11.5

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.52

11.5

211

.52

20,0

00 L

umen

MV

w 2

4' S

teel

Pol

e (1

61 k

Wh/

mo)

18.2

619

.26

19.2

619

.26

19.2

6

25,0

00 L

umen

HP

S w

24'

Ste

el P

ole

(107

kW

h/m

o)17

.56

18.8

218

.82

18.8

218

.82

Not

e: D

ata

is p

rese

nte

d o

nly

for

yea

rs in

clu

din

g an

d s

ub

seq

uen

t to

imp

lem

enta

tion

of

GA

SB

44.

Sou

rce:

Cit

y of

Ed

mon

d U

tili

ty C

ust

omer

Ser

vice

Dep

artm

ent

152

CIT

Y O

F ED

MO

ND

, OK

LAH

OM

ASA

LES

TAX

RAT

ES O

F D

IREC

T AN

D O

VER

LAPP

ING

GO

VER

NM

ENTS

Last

Ten

Fis

cal Y

ears

TAB

LE 9

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

City

3.25

%3.

25%

3.25

%3.

25%

3.25

%3.

75%

3.75

%3.

75%

3.75

%3.

75%

Okl

ahom

a C

ount

y0.

00%

0.00

%0.

00%

0.00

%0.

00%

0.00

%0.

00%

0.00

%0.

00%

0.00

%St

ate

of O

klah

oma

4.50

%4.

50%

4.50

%4.

50%

4.50

%4.

50%

4.50

%4.

50%

4.50

%4.

50%

Tota

l7.

75%

7.75

%7.

75%

7.75

%7.

75%

8.25

%8.

25%

8.25

%8.

25%

8.25

%

153

C

ITY

OF

ED

MO

ND

, OK

LA

HO

MA

TA

XA

BL

E S

AL

ES

BY

CA

TE

GO

RY

LA

ST

TE

N F

ISC

AL

YE

AR

ST

AB

LE

10

2007

2008

2009

2010

20

1120

1220

13*

2014

2015

2016

Agri, forestry, fishing hunting

(112

,697

)

55

,375

98,3

79

42

,304

31

,739

56

,292

20,0

50

28,8

89

30

,001

60,0

00

Mining, oil an

d gas extraction

62,2

85

29,0

76

64

,906

1,73

6

46,4

92

66,5

85

5,

204

6,

252

4,

025

23

,069

Utilities

2,85

4,68

6

2,

787,

641

2,96

2,61

4

2,

904,

097

2,

807,

077

2,

969,

951

2,18

5,46

3

3,60

9,16

7

3,84

4,15

9

4,

303,

732

Construction

39,0

45

28,5

00

36

,612

36,1

07

32

,830

69

,507

50,2

17

75,6

08

70

,085

93,8

37

Mfg‐foods, textile, tobacco

11

0,73

8

254,

580

261,

041

17

0,02

6

Mfg‐build

ing, books, glass, b

rick, concrete

286,

862

39

5,71

9

318,

134

21

3,98

3

21

1,01

6

30

3,99

3

1,07

5,37

4

1,17

0,30

8

1,26

0,15

1

1,

241,

830

Mfg‐iron,steel,sign,construction equipmen

t, hardware

75

9,79

8

568,

332

568,

108

47

2,63

1

Wholesale trade‐Automobiles, tires

62

,456

69

,034

89,8

54

57

,888

Wholesale trade‐Fu

rniture, h

ome furnishings

49,3

23

115,

615

55,9

68

52

,671

Wholesale trade‐Lumber, b

rick, roofing, siding

215,

711

199,

677

232,

700

30

6,02

5

Wholesale trade‐Office & m

edical equipmen

t, hardware,

electrical appliances

631,

941

708,

417

643,

930

65

8,97

6

Wholesale trade‐Hea

t & Air, p

lumbing, farm, garden

,

tran

sportation, industrial equipmen

t3,

106,

444

2,96

6,27

2

4,

257,

938

2,31

1,01

4

2,55

4,82

1

3,14

9,90

1

1,

918,

186

2,

229,

790

2,

171,

456

2,06

2,88

7

Wholesale trade‐Sp

orting go

ods, office supplies, drugs, apparel

224,

288

228,

999

346,

309

37

7,29

2

Wholesale trade‐Grocery, m

eat, fish, fruit, d

airy

119,

956

111,

759

113,

885

12

5,52

0

Wholesale trade‐Chem

ical, p

lastics, paint, books, florists, farm

supplies

179,

414

214,

533

204,

729

18

6,58

8

Retail trade‐cars, b

oats, tire, parts

1,18

0,53

3

1,09

4,58

2

1,20

8,56

3

1,

310,

926

Retail trade‐furn, h

ousehold, computer, cam

eras

2,66

8,46

6

2,

689,

076

2,66

9,62

1

2,

394,

461

2,

584,

712

3,

105,

063

3,66

7,78

8

2,97

2,83

9

3,66

0,72

7

3,

241,

497

Retail trade‐hardware, build

ing materials, p

aint, nursery

4,73

8,77

0

4,

844,

080

5,04

8,41

2

4,

676,

327

4,

417,

446

4,

967,

601

7,27

4,37

8

7,22

8,99

3

6,39

5,38

2

6,

613,

579

Retail trade‐grocery

2,86

5,97

1

2,

956,

101

3,21

7,33

7

3,

391,

516

3,

801,

497

4,

475,

165

5,73

0,61

7

5,68

0,27

9

6,17

5,94

0

6,

197,

197

Retail trade‐wine, bee

r, liquor stores

4,72

6,86

5

5,

199,

041

5,29

6,65

9

5,

306,

478

5,

613,

523

6,

193,

801

917,

293

838,

136

902,

803

98

2,10

1

Retail trade‐hea

lth, p

harmacies,

4,03

6,83

6

4,

196,

902

4,40

8,03

2

4,

515,

923

4,

697,

973

5,

197,

419

1,44

7,94

5

1,39

1,97

1

1,35

2,04

0

1,

529,

810

Retail trade‐gasolin

e with conv. Stores

758,

260

80

6,78

3

796,

361

85

2,48

4

99

7,62

8

1,

085,

814

316,

627

477,

195

640,

540

57

7,85

8

Retail trade‐clothing, shoes, jew

elry

1,28

2,69

0

1,

347,

014

1,40

7,88

0

1,

495,

670

1,

522,

093

1,

631,

106

2,21

3,02

9

2,13

5,79

8

2,13

8,16

0

2,

099,

602

Retail trade‐sporting go

ods, hobby, sew

ing, m

usical

1,75

1,70

0

1,72

1,28

2

1,77

7,88

2

1,

674,

319

Retail trade‐dep

t stores, gen

merchan

dise

7,61

6,21

6

8,

165,

460

8,43

0,10

0

8,

427,

080

8,

509,

668

8,

974,

710

11,3

59,3

40

12

,471

,298

13,0

97,4

34

13

,351

,178

Retail trade‐florist, o

ffice supplies, pet, art, ven

ding, used m

erch.

1,97

5,99

5

2,14

5,19

5

2,05

4,28

5

1,

991,

553

Tran

sportation and wareh

ousing‐towing, freight, trucking

14,6

93

18,5

22

33

,001

59,5

14

69

,007

62

,873

168,

612

179,

183

337,

113

25

,110

Tran

sportation and wareh

ousing‐wareh

ousing an

d storage

19,3

78

26,9

04

20

,387

15,9

28

Inform

ation‐new

spap

er, cab

le, w

ireless

1,94

8,51

0

2,

024,

068

2,11

5,51

3

2,

107,

808

2,

063,

197

2,

116,

694

2,26

7,04

0

2,14

9,34

1

2,18

5,15

7

2,

128,

055

Finan

ce and in

surance

15,6

48

15,7

02

12

,369

9,85

8

7,49

2

11

,467

51,3

15

108,

285

23,3

16

24

,089

Rea

l estate an

d ren

tal and leasing

407,

089

48

0,48

3

533,

356

49

3,92

8

48

9,98

4

63

3,88

3

950,

089

951,

448

957,

366

1,

109,

411

Professional, scien

tific, and technical services

16,4

00

17,6

79

23

,696

22,0

68

25

,167

25

,149

440,

391

282,

425

227,

880

16

1,87

9

Adm. &

support and waste m

angemen

t an

d rem

ediation services

39,3

09

33,5

48

40

,869

62,4

11

Ed

ucational services

42,2

72

36,6

47

42

,600

23,4

18

Hea

lth care an

d social assistance‐doctors, chiropractors, eye,

family services

260,

538

24

8,41

8

259,

991

24

8,36

9

25

5,98

6

27

2,92

5

23,3

51

21,5

99

15

,736

15,8

40

Arts, Entertainmen

t, and Recreation‐golf, fitness, bowlin

g,

museums

137,

266

16

3,30

1

163,

467

15

5,08

4

14

8,43

1

11

7,57

3

448,

675

764,

894

865,

127

1,

009,

240

Accommodation and Food Services ‐Hotels

282,

723

35

2,79

4

308,

276

28

5,60

9

30

4,70

1

35

8,17

5

476,

835

611,

217

1,41

0,56

6

90

3,85

3

Accommodation and Food Services ‐Restaurants, B

ars

1,01

4,96

6

94

8,33

9

891,

543

78

6,32

2

80

4,87

3

92

9,14

0

7,71

8,13

7

7,09

2,65

8

6,90

1,49

5

7,

565,

202

Other Services (Auto, Electronic rep

airs, Salons, funeral

400,

294

37

6,61

6

392,

206

40

1,68

7

45

9,31

3

47

2,94

0

692,

889

702,

250

707,

734

79

3,27

8

Public Administration‐Regulation of Tran

sportation Program

s(1

3)

(1

39)

138

562,

687

Unclassified

177,

054

25

6,19

1

192,

498

32

3,70

3

53

0,89

5

67

7,95

0

(20,

517)

667,

328

429,

028

-

$39

,605

,879

$

41,3

69,1

53

43

,938

,901

41,4

63,1

30

42,9

87,5

61

47

,925

,677

58

,761

,128

61

,376

,116

63

,464

,669

64

,162

,993

(1)

The

sou

rce

for

taxa

ble

sale

s by

cat

egor

y is

the

Okl

ahom

a T

ax C

omm

issi

on.

Thi

s am

ount

is th

e gr

oss

amou

nt b

efor

e th

e S

tate

ret

ains

por

tion

for

revo

lvin

g fu

nd.

Not

e: i

n F

Y 2

013,

the

Okl

ahom

a T

ax C

omm

issi

on c

hang

ed th

eir

SIC

cod

es a

nd n

ow

use

NA

ICS

cod

es.

The

se n

ew c

odes

hav

e m

ore

cate

gorie

s th

an in

pre

viou

s ye

ars.

We

mat

ched

pre

viou

s ye

ars

as b

est t

hat w

e co

uld

to m

atch

to th

e ne

w c

odes

des

crip

tions

.

154

CIT

Y O

F ED

MO

ND

, OK

LAH

OM

AR

ATIO

FO

R O

UTS

TAN

DIN

G D

EBT

BY

TYPE

Last

Ten

Fis

cal Y

ears

TAB

LE 1

1

Rev

enue

Cap

ital

Rev

enue

Cap

tial

Tota

l %

of

To

tal

Fisc

alB

onds

Leas

esB

onds

Not

esLe

ases

Prim

ary

Pers

onal

D

ebt P

erYe

arPa

yabl

ePa

yabl

ePa

yabl

ePa

yabl

ePa

yabl

eG

over

nmen

tIn

com

e

Cap

ita*

20

0779

,755

,000

-

66,0

60,0

00

24

,130

,636

123,

383

170,

069,

019

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533

,159

34

.748

.620

,786

4.6%

20

0981

,395

2,82

8,23

2,06

534

,747

34

.951

.421

,358

4.8%

20

1081

,405

*2,

713,

228,

650

33,3

30

35.0

50.1

21,9

60

4.

2%

2011

83,5

91

3,

242,

745,

663

38,7

93

34.2

47.3

22,4

72

4.

0%

2012

84,4

04

3,

360,

292,

048

39,8

12

35.2

46.6

23,0

89

4.

4%

2013

85,1

90

3,

247,

783,

560

38,1

24

35.0

46.5

23,4

84

3.

7%

2014

87,8

77

3,

424,

303,

059

38,9

67

34.9

49.4

23,9

65

3.

5%

2015

88,0

67

3,

715,

132,

785

40,4

95

35.7

51.2

24,4

07

4.

4%

Not

e: I

nfor

mat

ion

was

una

vaila

ble

for t

he c

ells

with

N/A

.

Sour

ces:

(

1)

*Ba

sed

on 2

010

Cen

sus

Bure

au d

ata

(2)

Edm

ond

Econ

omic

Dev

elop

men

t Aut

horit

y (E

EDA)

(3)

Edm

ond

Scho

ol D

istri

ct

(4)

ww

w.b

ls.g

ov

(5

)Ed

mon

d Ec

onom

ic D

evel

opm

ent A

utho

rity

(EED

A).

Info

rmat

ion

for p

revi

ous

year

s no

t ava

ilabl

e.

City

of E

dmon

d, G

IS/P

lann

ing

Dep

artm

ent 2

001-

2011

Base

d on

the

Amer

ican

Com

mun

ity S

urve

y Av

g H

H, a

nd B

uild

ing

Perm

its to

dat

e

160

http://www.bls.gov/#

CIT

Y O

F ED

MO

ND

, OK

LHAO

MA

PRIN

CIP

AL E

MPL

OYE

RS

Cur

rent

and

Ten

Yea

rs A

go

TAB

LE 1

7

Empl

oyer

Prod

uct/B

usin

ess

Ran

kEm

ploy

ees

% o

f Tot

alR

ank

% o

f Tot

al

Edm

ond

Publ

ic S

choo

lsPu

blic

Edu

catio

n1

2,19

1

39.4

%1

2,74

7

38.8

%

U

nive

rsity

of C

entra

l Okl

ahom

a

Hig

her E

duca

tion

21,

009

18

.1%

21,

372

19

.4%

City

of E

dmon

dLo

cal M

unic

ipal

ity3

642

11.5

%3

700

9.9%

INTE

GR

IS H

ealth

Edm

ond

Hos

pita

l

4

444

6.3%

Petra

Indu

strie

sEl

ectro

nic

Dis

tribu

tion

818

9

3.

4%5

367

5.2%

Adfit

ech

Qua

lity

Con

trol f

or M

ortg

age

Indu

stry

725

0

4.

5%6

362

5.1%

OU

Med

ical

Cen

ter 1

Hos

pita

l5

350

6.3%

735

65.

0%

Mer

cy E

dmon

d I-3

5C

linic

and

Wel

lnes

s C

ente

r8

255

3.6%

Sum

mit

Med

ical

Cen

ter

Surg

ical

Tre

atm

ent C

ente

r9

252

3.6%

Rem

y In

tern

atio

nal2

Auto

Par

ts M

anuf

actu

ring

443

07.

7%10

225

3.2%

Pe

lco

Prod

ucts

Traf

fic, D

ecor

ativ

e, &

Util

ity H

ardw

are

1010

7

1.

9%

Ben

E. K

eith

³Fo

od D

istri

butio

n6

250

4.5%

Cox

Com

mun

icat

ions

Com

mun

icat

ion

Serv

ices

914

7

2.

6%

Tota

ls5,

565

100%

7,08

010

0%

Sour

ce:

Edm

ond

Econ

omic

Dev

elop

men

t Aut

horit

y

1 Form

erly

Edm

ond

Med

ical

Cen

ter

2 Form

erly

Uni

t Par

ts3*

Ben

E. K

eith

is lo

cate

d ou

t of C

ity o

f Edm

ond

limits

but

was

incl

uded

in 2

006

data

, thi

s co

mpa

ny is

stil

l in

busi

ness

, we

are

only

incl

udin

g th

ose

with

in th

e C

ity li

mit

Empl

oyee

s

2006

2016

161

CITY OF EDMOND, OKLAHOMAFULL-TIME EQUIVALENT BUDGETED CITY GOVERNMENT EMPLOYEES BY FUNCTION/PROGRAM

Last Ten Fiscal YearsTABLE 18

Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016Function/Program

General Government:Managament Services 6 5 5 5 4 5 5 5 5 6City Clerk/Governmental Relations 4 4 4 4 4 4 4 2 2 2Finance 7 8 8 8 8 8 8 8 8 8Treasurer 2 2 2 2 2 2 2 1 1 1Human Resources 6 7 7 7 7 7 7 6 5 5IT 16 16 16 16 16 16 16 17 17 17Legal 7 8 8 8 8 8 8 8 7 6Other 22 22 24 26 26 26 30 32 32 32Engineering 14 14 14 14 14 14 14 17 18 18Planning 6 6 6 6 6 6 7 7 7 7CDBG 1 1 1 1 1 1 1 1 1 1Building 15 15 15 15 15 15 15 15 16 16Community Image 7 7 7 5 5 5 6 6 9 10Convention & Visitors Bureau 2 2 2 2 2 2 2 2 3 3Downtown Community Center 2 2 2 2 2 2 1 1 1 1

Total General Government 117 119 121 121 120 121 126 128 132 133

Public Safety and Judiciary:Police: Officers 111 114 114 114 114 114 114 114 123 120 Civilians 20 22 22 22 22 22 23 23 25 30 Animal Welfare 10 10 10 10 10 10 9 9 9 7Fire: Firefighters & Officers 111 114 114 115 115 115 115 115 117 117 Civilians 5 6 7 7 7 7 7 10 5 5Emergency Management 2 2 2 2 2 2 2 2 2 2Central Communications/EM 21 24 24 24 24 24 24 24 24 24Municipal court 8 8 8 8 8 8 8 8 8 7

Total Public Safety and Judiciary 288 300 301 302 302 302 302 305 313 312

Transportation:Streets 25 25 25 25 25 25 25 25 25 25Traffic 5 5 5 5 5 5 5 5 6 7Public Works Administration 12 14 14 14 12 12 13 13 12 11

42 44 44 44 42 42 43 43 43 43Cultural, Parks and Recreation:

Parks and Recreations 44 40 41 41 42 42 42 42 42 42 Total Cultural, Parks and Recreation 44 40 41 41 42 42 42 42 42 42

Utilities:Electric 47 48 48 48 48 49 49 49 50 50Water 42 43 42 42 42 42 42 42 44 44Solid Waste 21 21 21 21 21 20 20 20 20 19Wastewater 19 21 21 21 22 22 22 24 22 26Drainage 5 5 5 5 5 5 5 5 5 5Utility Customer Service 36 38 38 38 38 38 39 39 42 43Central Warehousing 0 0 3 3 3 3 3 3 3 3

Total Public Works 170 176 178 178 179 179 180 182 186 190

Total Full-Time Budgeted Employees by Function/Program 661 679 685 686 685 686 693 700 716 720

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

162

CITY OF EDMOND, OKLAHOMACapital Asset Statistics by Function/Program

Last Ten Fiscal YearsTABLE 19

FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016

Function/Program

Police: Stations 1 1 1 1 1 1 1 1 1 1 Patrol units 124 126 138 139 144 147 147 148 152 152Fire : Stations 5 5 5 5 5 5 5 5 5 5 Engines 6 6 6 5 5 5 5 5 5 5 Quint 1 1 1 2 2 2 2 2 2 2 Vehicles 25 26 29 29 29 29 29 35 35 44Refuse Collection: Collection trucks 23 23 23 22 22 25 24 24 24 25Streets: Street miles1 610 618 625 627 627 487 487 494 484* 485 Streetlights 4,162 4,458 4,463 4,954 5,421 5,542 5,652 6,123 6,190 6,339 Traffic signals 82 91 95 96 99 99 99 99 100 99Parks and Recreation: Acreage 4,821 4,821 4,949 4,960 4,960 4,960 4,960 4,960 4,960 4,960 Playgrounds 22 22 23 23 23 23 23 23 23 23 Baseball/softball diamonds 24 24 24 24 24 24 24 31 31 31 Soccer/football fields 13 13 13 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 1Public Transportation:2

Buses 3 3 3 8 8 12 12 12 12 12 Trolley 3 3 3 - 0 0 0 0 0 0Cemetery: Plots Maintained3 15,165 15,165 15,165 15,165 15,165 15,599 15,599 15,599 15,599 15,654 Vehicles & Machinery 3 4 4 4 4 4 4 4 4 4Water: Water mains (miles) 463 474 480 484 493 500 502 507 516 523 Fire hydrants 3,882 3,982 4,092 4,129 4,315 4,392 4,388 4,473 4659 4827 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 399 407 413 416 416 423 424 429 431 438 Storm sewers (miles) 95 100 105 107 111 115 118 118 128 133 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

163

C

ITY

OF

EDM

ON

D, O

KLA

HO

MA

Ope

ratin

g In

dica

tors

by

Func

tion/

Prog

ram

Last

Ten

Fis

cal Y

ears

TAB

LE 2

0

Func

tion/

Prog

ram

20

0720

0820

0920

1020

1120

1220

1320

1420

1520

16Po

lice

Phy

sica

l Arre

sts

2,68

32,

364

2,07

12,

543

2,65

8

2,72

8

2,

931

2,33

6

2,22

0

2,52

7

P

arki

ng V

iola

tions

1,53

31,

086

1,64

31,

462

1,54

7

1,23

0

98

4

747

1,00

8

1,06

3

T

raffi

c Vi

olat

ions

19,9

6519

,815

18,8

2117

,409

17,4

80

14

,196

14,1

51

13

,311

10,7

51

11

,152

Fire

Em

erge

ncy

Res

pons

es4,

518

5,02

05,

692

5,74

55,

890

6,

793

5,98

4

6,

810

7,

375

8,

101

Fire

s Ex

tingu

ishe

d33

021

026

023

821

4

30

4

223

20

2

23

2

25

9

Ins

pect

ions

1,08

088

31,

191

1,05

793

7

1,

096

904

1,

062

3,

144

1,

577

Solid

Was

te C

olle

ctio

n S

olid

Was

te C

olle

cted

(Ton

s Pe

r Day

)23

825

825

925

526

2

24

2

218

24

1

22

3

19

6

Rec

ycla

bles

Col

lect

ed (T

ons

Per D

ay)

1112

1111

10

8

8

18

24

17

O

ther

Pub

l ic W

orks

Pot

hole

s R

epai

red:

As

phal

t Pat

chin

g (T

ons)

309

261

345

255

218

385

21

4

320

279

370

Con

cret

e Pa

tchi

ng (C

ubic

Yar

ds)

171

9110

616

011

7

14

0

128

89

73

43

2

As

phal

t Rep

airs

(Ton

s)1,

728

4,74

12,

364

2,79

32,

183

44

6

1,10

5

68

9

61

9

71

4

C

oncr

ete

Rep

airs

(Cub

ic Y

ards

)30

347

743

355

451

0

20

3

298

28

1

40

0

30

7

Park

s &

Rec

reat

ion

Athl

etic

Fie

ld-A

gree

men

ts

EAS

I (#

of F

ield

s U

sed)

2020

2020

20

20

20

20

20

20

Edm

ond

Socc

er C

lub

(# o

f Fie

lds

Use

d)13

1313

1616

16

16

16

16

16

M

iracl

e Le

ague

of E

dmon

d (#

of F

ield

s U

sed)

11

11

1

1

1

1

1

1

Y

MC

A (#

of F

ield

s U

sed)

77

77

7

7

7

7

7

7

E

dmon

d R

ound

Up

Aren

a1

11

11

1

1

1

1

1

Edm

ond

Rug

by C

lub

(# o

f Fie

lds

Use

d)2

22

2

2

2

2

2

2

E

dmon

d La

cros

se C

lub

(# o

f Fie

lds

Use

d)

55

55

4

4

4

4

4

B &

B T

enni

s (#

of C

ourts

Use

d)14

1414

1414

14

14

14

14

14

Com

mun

ity C

ente

r-MAC

Pro

gram

Par

ticip

ants

1,94

084

41,

120

2,30

96,

525

2,

332

4,33

2

1,

570

1,

864

4,

596

M

AC-S

peci

al E

vent

Par

ticip

ants

1n/

a10

,381

5,41

96,

500

4,08

6

3,33

8

4,

034

2,34

8

915

5,75

6

(MAC

-Mul

ti-U

se A

ctiv

ity C

ente

r) C

lass

es⁴

3,39

4

7,05

8

1,03

2

Se

nior

Cen

ter-P

rogr

am P

artic

ipan

ts48

,369

69,3

6168

,034

60,1

8138

,772

42,2

40

42

,75 3

45,2

56

48

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51,0

91

-

Sr. C

ente

r Lun

ch P

rogr

am22

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19,7

2617

,080

11,2

669,

486

9,

669

9,54

1

8,

618

9,

686

9,

803

Wat

erN

ew W

ater

Con

nect

ions

942

412

264

283

330

491

59

8

539

589

552

W

ater

Mai

n Br

eaks

9760

4457

73

45

58

53

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51

A

vera

ge D

aily

Pro

duce

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10,1

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00

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(Tho

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ds o

f Gal

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eak

Dai

ly P

rodu

ced

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21,9

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21,1

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22,0

97

19

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00

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(

Thou

sand

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aste

wat

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erag

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aily

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age

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tmen

t7,

000

7,30

06,

850

7,18

06,

900

7,

400

7,00

0

7,

300

7,

300

7,

680

(

Milli

ons

of G

allo

ns)

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sit

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k Bu

s Se

rvic

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even

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ileag

e0

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27

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283,

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Tota

l Rou

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leys

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1 20

08, t

rack

ing

of P

roga

ms

and

Spec

ial E

vent

s ar

e be

ing

track

ed s

epar

atel

y

Sou

rce:

Var

ious

City

Dep

artm

ents

2 Tr

ansi

t inf

orm

atio

n pr

ovid

ed b

y M

etro

Tra

nsit

200

6-20

093

Tran

sit I

nfor

mat

ion

prov

ided

by

McD

onal

d Tr

ansi

t & A

ssoc

iate

s 20

10, E

dmon

d's

Tran

sit b

egan

Jul

y 1,

200

9⁴S

tart

ing

with

20

14

, Cla

ss p

art

icip

atio

n h

as

its o

wn

ca

teg

ory

inst

ea

d o

f be

ing

me

rge

d w

ith p

rog

ram

s a

s in

the

pa

st.

164

CIT

Y O

F E

DM

ON

D,

OK

LA

HO

MA

CO

NS

TR

UC

TIO

N P

ER

MIT

SL

as

t T

en

Fis

ca

l Y

ea

rsT

AB

LE

21

Fis

ca

l ye

ar

Fis

ca

l ye

ar

20

16

50

11

75

,95

7,0

69

20

16

68

90

,52

4,8

20

20

15

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11

92

,71

4,8

09

20

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45

68

,35

5,5

73

20

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56

11

74

,72

0,0

33

20

14

39

78

,13

6,8

25

20

13

63

81

93

,54

0,2

18

20

13

33

41

,12

3,8

30

20

12

50

61

47

,73

1,8

66

20

12

64

18

1,9

06

,27

12

01

13

37

68

,66

0,5

92

20

11

41

30

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7,1

40

20

10

28

97

5,8

72

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12

01

01

35

8,4

12

,75

0

20

09

2

18

6

8,6

60

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22

00

94

03

9,6

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5

20

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44

41

44

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3,0

81

20

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77

74

,34

1,1

94

2

00

74

53

14

4,9

63

,08

1

20

07

81

50

,30

7,8

22

Sou

rce:

City

of

Edm

ond

Pub

lic W

orks

Dep

artm

ent

Fis

cal b

uild

ing

perm

it re

port

s

Nu

mb

er

of

Pe

rmit

sC

on

str

uc

tio

n C

os

ts

Nu

mb

er

of

Pe

rmit

s C

on

str

uc

tio

n C

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t

Re

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l C

on

str

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n

C

om

me

rcia

l C

on

str

uc

tio

n

Nu

mb

er

of

Pe

rmit

s C

on

str

uc

tio

n C

os

t

0

100

200

300

400

500

600

700

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

Bu

ildin

g P

erm

it b

y F

isc

al

Ye

ar

Res

iden

tial

Com

me

rcia

l

0

20

,00

0,0

00

40

,00

0,0

00

60

,00

0,0

00

80

,00

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00

10

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0

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0,0

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,00

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0,0

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,00

0

20

0,0

00

,00

0

12

34

56

78

91

0Y

ears

Co

nst

ruct

ion

Co

st b

y F

isca

l Y

ear

Re

side

ntia

l

Co

mm

erc

ial

165


SINGLE AUDIT REPORTS AND SUPPLEMENTARY SCHEDULES

June 30, 2016

CITY OF EDMOND, OKLAHOMA TABLE OF CONTENTS

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SINGLE AUDIT REPORTS AND SUPPLEMENTARY SCHEDULES: Reports related to financial statements of the reporting entity Required by GAO Government Auditing Standards: 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 1 Reports related to Federal Assistance Programs Required by the Uniform Guidance: Independent Auditor's Report on Compliance for Each Major Program and on Internal Control over Compliance Required By the Uniform Guidance; and Report on the Schedule of Expenditures of Federal Awards Required by the Uniform Guidance 3 Schedule of Expenditures of Federal Awards 5 Notes to the Schedule of Expenditures of Federal Awards 6 Schedule of Findings and Questioned Costs 7 Summary Schedule of Prior Audit Findings and Questioned Costs 12


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, 2016, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements and have issued our report thereon dated March 22, 2017.

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 and therefore, material weaknesses or significant deficiencies may exist that were not identified. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. We did identify certain deficiencies in internal control, described in the accompanying schedule of findings and questioned costs, that we consider to be significant deficiencies, as findings 2016-01 and 2016-02.

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 an instance of noncompliance or other matter that is required to be reported under Government Auditing Standards and which is described in the accompanying schedule of findings and questioned costs as finding 2016-03.

The City’s Response to Findings

The City’s response to the findings identified in our audit is described in the accompanying schedule of findings and questioned costs. The City’s response was not subjected to the auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on it.

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.

March 22, 2017


Member of AICPA and OSCPA

INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE;

AND REPORT ON THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS REQUIRED BY THE UNIFORM GUIDANCE

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

Report on Compliance for Each Major Federal Program

We have audited the City of Edmond, Oklahoma’s (the “City”) compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on each of the City’s major federal programs for the year ended June 30, 2016. The City’s major federal programs are identified in the summary of auditor’s results section of the accompanying schedule of findings and questioned costs.

Management’s Responsibility

Management is responsible for compliance with federal statutes, regulations, and the terms and conditions of its federal awards applicable to its federal programs.

Auditor’s Responsibility

Our responsibility is to express an opinion on compliance for each of the City’s major federal programs based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Those standards and the Uniform Guidance require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the City’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances.

We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program. However, our audit does not provide a legal determination of the City’s compliance.

Opinion on Each Major Federal Program

In our opinion, the City, complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2016.

Report on Internal Control over Compliance

Management of the City is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered the City’s internal control over compliance with the types of requirements that could have a direct material effect on each major federal program to determine the auditing procedures that are appropriate in the

circumstances for the purpose of expressing an opinion on compliance for each major federal program and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control over compliance.

A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance.

Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.

The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose.

Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance

We have audited 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, as of and for the year ended June 30, 2016, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements. We issued our report thereon dated March 22, 2017, which contained unmodified opinions on those financial statements. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the basic financial statements. The accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as required by the Uniform Guidance and is not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the 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 schedule of expenditures of federal awards is fairly stated in all material respects in relation to the basic financial statements as a whole.

March 22, 2017


SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

Federal Pass-ThroughCFDA Entity Federal

Federal Grantor/Pass-Through Grantor/Program Title Number Identifying Number ExpendituresU.S. DEPARTMENT OF AGRICULTURE

Passed through Oklahoma Department of Agriculture - Forestry ServicesCooperative Forestry Assistance 10.664 U&CF 12.01 4,444$

TOTAL U.S. DEPARTMENT OF AGRICULTURE 4,444

U.S. DEPARTMENT OF JUSTICEPassed through Oklahoma State Bureau of Investigation

Missing Children's Assistance 16.543 OJJDP-ICAC 2,578

Local Law Enforcement Block Grants 16.592 12,257

Federal Bureau of Investigation - JTTF Overtime Reimbursement - FBI-OCJTTF 17,504

TOTAL U.S. DEPARTMENT OF JUSTICE 32,339

U.S. DEPARTMENT OF TRANSPORTATIONPassed through Association of Central Oklahoma Governments

Highway Planning and Construction 20.205 2106UPUP 6,000

Passed through Oklahoma Highway Safety OfficeHighway Safety Cluster

State and Community Highway Safety 20.600 AL-16-03-04-18 8,953 State and Community Highway Safety 20.600 SE-16-03-03-18 42,541 State and Community Highway Safety 20.600 STMC-16-02-03-18 39,726 State and Community Highway Safety 20.600 AL-15-03-01-17 30,573 Incentive Grant Program to Increase Motorcyclist Safety 20.612 M9MT-15-02-01-17 4,542 Incentive Grant Program to Increase Motorcyclist Safety 20.612 MC-05-02-03-17 6,681

Subtotal for Highway Safety Cluster 133,016

TOTAL U.S. DEPARTMENT OF TRANSPORTATION 139,016

U.S. DEPARTMENT OF HOMELAND SECURITYFederal Emergency Management AgencyPassed through Oklahoma Department of Emergency Management

Disaster Grants - Public Assistance (Presidentially Declared Disasters) 97.036 4247 DR OK 1,338,308

Hazard Mitigation Grant 97.039 1678 DR OK 130,113

Assistance to Firefighters Grant 97.044 1,649

TOTAL U.S. DEPARTMENT OF HOMELAND SECURITY 1,470,070

TOTAL EXPENDITURES OF FEDERAL AWARDS 1,645,869$

See notes to schedule of expenditures of federal awards.

Year Ended June 30, 2016

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CITY OF EDMOND, OKLAHOMA NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS Year Ended June 30, 2016

NOTE A—BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards (SEFA) includes the federal award activity of the City under programs of the federal government for the year ended June 30, 2016. The information in this SEFA is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the SEFA presents only a selected portion of the operations of the City, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the City. NOTE B—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Expenditures reported on the SEFA are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, either the cost principles contained in the Office of Management and Budget Circular A-87, Cost Principles for State, Local and Indian Tribal Governments, or the cost principles in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The City has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. NOTE C—SUBRECIPIENTS During the year ended June 30, 2016, the City did not provide any federal awards to subrecipients.

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CITY OF EDMOND, OKLAHOMA SCHEDULE OF FINDINGS AND QUESTIONED COSTS Year Ended June 30, 2016

Section I--Summary of Auditor’s Results Financial statements Type of auditor’s report issued on whether the financial statements were in accordance with GAAP: Unmodified Internal control over financial reporting: Material weakness(es) identified? yes X no

Significant deficiency(ies) identified that are not considered to be material weakness(es)? X yes none reported

Noncompliance material to financial statements noted? yes X no Federal Awards Internal control over major programs: Material weakness(es) identified? yes X no

Significant deficiency(ies) identified that are not considered to be material weakness(es)? yes X none reported

Type of auditor’s report issued on compliance for major programs: Unmodified Any audit findings disclosed that are required to be reported in accordance with 2 CFR 200.516(a)? yes X no Identification of major programs:

CFDA NumberDisaster Grants - Public Assistance (Presidentially Declared Disasters) 97.036

Program

Dollar threshold used to distinguish between type A and type B programs: $750,000 Auditee qualified as low-risk auditee? X yes no

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CITY OF EDMOND, OKLAHOMA SCHEDULE OF FINDINGS AND QUESTIONED COSTS--Continued Year Ended June 30, 2016

Section II--Findings Required to be Reported in Accordance with Government Auditing Standards: Finding 2016-01 Account Reconciliations Criteria: Internal controls should be sufficient to safeguard the City’s assets and ensure accurate and timely financial reporting. Condition: The City experienced significant delays in reconciling its accounts during the year, including its cash accounts and utility receivables. Cause: The City continues to work through issues related to its new software for its utility customer billings and reconciling amounts and transactions between the utility billing software and its general ledger. Additionally, the City experienced several key personnel losses during and subsequent to year-end, resulting in delayed account reconciliations. Effect: Cash, receivables, and other accounts were effectively reconciled only after year-end, resulting in increased exposure to inappropriate activity before being detected and caused delays in year-end reporting. Recommendation: Subsequent to year-end, key positions in the finance department were filled and outside consultants were employed to assist in performing the necessary reconciliations and financial statement preparation. We recommend that the City continue to monitor its progress during fiscal 2017 to ensure that accounts are accurately and timely reconciled. City’s Response: Management recognizes there were issues with reconciliation efforts during FY15-16. Problems associated with significant turnover in both management and accounting staff was at the root of most of the issues during the past fiscal year. The City of Edmond has employed a new Director of Finance, effective November 28, 2016 and a new Assistant Finance Director, effective January 3, 2017. Additionally, a staff member was added in December 2016, with the primary responsibility of performing daily reconciliation activities. Management is confident that based upon our current process and progress, this issue has been satisfactorily resolved. The Utility Billing system underwent a conversion in 2015. A number of issues are still in question from the conversion and an upgrade is scheduled for 2017 to correct a number of deficiencies. We are aware of specific issue relating to utility accounts and are working to develop an appropriate management of those specific accounts.

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Finding 2016-02 Payroll Approvals Criteria: Controls over payroll should be sufficient to ensure accurate capture of time worked and the resulting payment of payroll. Condition: Our detailed testwork over payroll transactions revealed numerous instances of payroll time reports being signed by the supervisor, but not by the employee, in the City’s police department. In summary, 393 of 470 timesheets, over three separate payroll periods, were not signed by the employee. Cause: Availability and scheduling conflicts often make it difficult to obtain necessary signatures in a timely manner. Effect: Failure to follow established procedures can result in discrepancy in pay and/or benefits. Recommendation: We recommend that the City establish appropriate controls and that any workaround solutions be considered to ensure compliance with those controls. City’s Response: Finance Department management will coordinate with Human Resources Department personnel to ensure adequate education and training is provided to departments to ensure that employees sign their time sheet submissions. Management is aware of the potential liability associated with the issue and will work to correct the situation.

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Finding 2016-03 Negative Fund Balance Criteria: Oklahoma law prescribes that the City may not have a negative fund balance. Condition: The 2012 Public Safety Center Tax Fund reports a deficit fund balance of $1,998,210. Cause: Controls were not sufficient to ensure that proceeds were placed in the 2012 Public Safety Center Tax Fund prior to the incurrence of liabilities in accordance with State law. Effect: Failure to provide sufficient resources can lead to non-compliance with State law. Recommendation: We recommend that the City put procedures in place to ensure that restricted or assigned funds be spent only for their intended purposes and that negative fund balances be monitored and spending constrained or that the City reimburse this fund from other sources. City’s Response: In previous budget year, the City did reimburse this fund from other sources. City failed to do so this year. In FY16-17, this fund will be dissolved and remaining funds will be transferred to 2017 Capital Improvement Fund. City will more closely monitor fund balances to ensure this event does not occur again.

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Section III--Finding Required to be Reported in Accordance with the Uniform Guidance: None to report for the June 30, 2016, period.

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CITY OF EDMOND, OKLAHOMA SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS AND QUESTIONED COSTS Year Ended June 30, 2016

No matters were reportable.

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Documents

CITY OF EDMOND, OKLAHOMA AND ACCOMPANYING INDEPENDENT AUDITOR’S REPORT JUNE 30, 2016 · 2017. 4. 26. · CITY OF EDMOND, OKLAHOMA COMPREHENSIVE ANNUAL FINANCIAL REPORT AND ACCOMPANYING