HomeMy WebLinkAboutCity of Edmond - Public Financial ReportCITY OF EDMOND, OKLAHOMA
POPULAR ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2021
Edmond's Numbers 13
General Fund 16
Long-Term Debt 20
Economic Outlook 24
Director’s Letter 2
City Council & Ward Map 4
Statement of Net Position 6
Change in Net Position 8
Pension/OPEB 10
Edmond's Sales Tax 12
1
Nestled on historic Route 66 in central Oklahoma,
Edmond covers approximately 87 square miles and is
the third largest city in the Oklahoma City Combined
Statistical Area (CSA). The City has adopted a
charter and operates under a Council-Manager form
of government. The city features quiet suburban
living with a central business district, major shopping
and modern office areas, and hosts a multitude of
recreational and cultural events throughout the year.
3
Citizens of Edmond,
As part of our continuous effort to keep you informed on the utilization of your
tax dollars, we are pleased to present our Popular Annual Financial Report
(PAFR) for the fiscal year ending June 30, 2021. This report is a condensed
version of our Annual Comprehensive Financial Report (ACFR). Both reports are
available on our website at www.edmondok.com.
The details in the PAFR summarize our financial position based on the audited
financial documents contained within the 2021 ACFR. The ACFR is prepared in
accordance with generally accepted accounting principles (GAAP). This report
is in summary form and excludes the City’s discretely presented component
units which are the Edmond Economic Development Authority (EEDA) and the
Edmond Historical Preservation Trust (EHPT).
The information included in this report is an overview of the City’s economic
outlook, an analysis of the financial position of the City, and other key financial
data. It provides analysis of the General Fund and discusses how money is
received and spent. Additional detailed financial information on the operations
of the City may be found in the ACFR.
The City has two primary sources of revenue: utility services and sales
tax. The City continues to see strong sales tax receipts year over year
as our population has grown steadily. The City provides a wide range of
municipal services, including police and fire protection, planning and zoning,
street improvements and maintenance, parks, cultural events and general
administrative services.
The City operates enterprise funds for electric, water resources and solid
waste management under the legal entity of the Edmond Public Works
Authority (EPWA). EPWA is a public trust that was created under applicable
Oklahoma statutes on October 6, 1970, with the City as the named beneficiary.
EPWA’s financial operations are reported with the City’s financial statements.
Water improvements continue as outlined in the City of Edmond Water Master
Plan located on the City website. The Master Plan is our road map to keep pace
with the anticipated growth in our population and to continue to provide a safe
water supply for Edmond residents. Infrastructure improvements continue
at many of our major intersections with street widening and intelligent traffic
light systems as we see steady growth in construction and population.
Improvements and upgrades to our sports complexes, public golf facilities, public
trails, park and recreation venues and downtown improvements are underway.
Thank you for taking interest in your local government. As you review the
report, we invite you to share any questions, concerns or comments with us.
You may contact the Financial Services Department at (405) 359-4521,
visit the City Manager’s office at 24 E. First Street in Edmond or contact us by
email. Email addresses and further information is available at the City website:
www.edmondok.com.
Respectfully submitted,
Kathryn L. Panas, CPA
Director of Finance
2
Pe
n
n
s
y
l
v
a
n
i
a
Memorial
33rd
15th
Edmond
Danforth
Coffee Creek
Sorghum Mill
Waterloo
We
s
t
e
r
n
Ke
l
l
y
Bo
u
l
e
v
a
r
d
Br
y
a
n
t
Co
l
t
r
a
n
e
So
o
n
e
r
Ai
r
D
e
p
o
t
Mi
d
w
e
s
t
Do
u
g
l
a
s
Po
s
t
We
s
t
m
i
n
s
t
e
r
An
d
e
r
s
o
n
Hi
w
a
s
s
e
e
He
n
n
e
y
Ch
o
c
t
a
w
B
r
o
a
d
w
a
y
E
x
t
e
n
s
i
o
n
I-35
Sa
n
t
a
F
e
Covell
Stacie A. Peterson
Council Member Ward 4
2021–25
stacie.peterson@edmondok.com
Christin Mugg
Council Member Ward 3
2021–25
christin.mugg@edmondok.com
David Chapman
Council Member Ward 1
2020–23
david.chapman@edmondok.com
Darrel A. Davis
Mayor | 2021–23
darrell.davis@edmondok.com
Josh Moore
Council Member Ward 2
2020–23
josh.moore@edmondok.com
OUR CORE VALUES
Accountability | We are responsible for our work, our words, and our actions.
Communication | We value efforts to communicate with our customers in a caring, timely, professional manner.
Customer Service | We provide service with courtesy, respect, dependability, flexibility, and timeliness.
Inclusion | We promote an inclusive work force and equitable services for our increasingly diverse community.
Innovation | We value innovation, creative thought, and the collaboration of ideas.
Integrity | We value the spirit of integrity in all aspects of our working lives.
Professionalism | We continue to seek growth, striving to be a learning organization.
Teamwork | We encourage diversity of thinking, ideas, and responsibilities.
54
TRUSTWORTHY SERVICE
THROUGH CONTINUOUS IMPROVEMENT
Governmental
Activities
Business-Type
Activities
Totals
Current assets $129,690 $124,879 $266,703 $241,194 $396,393 $366,073
Capital assets, net 353,204 340,545 492,259 450,143 845,463 790,688
Other non-current assets 5,179 8,801 20,701 43,106 25,880 51,907
Total assets 488,073 474,225 779,663 734,443 1,267,736 1,208,668
Deferred Outflows 29,654 23,856 4,565 3,565 34,219 27,421
Current liabilities 36,089 28,451 38,229 30,138 74,318 58,589
Non-current liabilities 102,175 93,816 266,040 258,427 368,215 352,243
Total liabilities 138,264 122,267 304,269 288,565 442,533 410,832
Deferred Inflows 4,998 7,847 713 654 5,711 8,501
Net position
Net Investment in capital assets 335,350 313,549 262,729 236,841 598,079 550,390
Restricted 85,557 72,384 22,181 24,019 107,738 96,403
Unrestricted (deficit) (46,442) (17,966) 194,336 187,930 147,894 169,964
Total net position $479,246 $448,790 $853,711 $816,757
This number represents the Unrestricted Net Position to pay for emergencies,
shortfalls or other unexpected needs in both the Governmental and Business
Type Activities for the fiscal year ended June 30, 2021. New reporting standards
implemented in 2016 caused our Governmental Activities to report a negative
in Unrestricted Net Position. For full disclosure, refer to our ACFR, Note 4 at
www.edmondok.com/budget/reports.
The governmental activities net position for fiscal year ending June 30, 2021, reflect an increase over prior year's net position.
The business-type activities also reflect an increase in net position. The full disclosed Statement of Net Position can be located
in our ACFR located at edmondok.com/budget/reports.
Unrestricted net position refers to all other net position that is not restricted or net investments in capital assets. This represents
the amount of unexpended and available resources the City has in funds combined at a point in time to fund emergencies, shortfalls
or other unexpected needs. This allows management to track the City's financial position over time.
Sales tax, franchise fees, fines, state and federal
grants finance most of the City's services.
General Administrative Services
Fire
Police
Street Construction & Repair
Park Maintenance
Income from resident utility bills, public golf course
and lake fees finance business-type operations.
Electricity
Water
Drainage
Wastewater
Solid Waste
KickingBird Golf Course
Arcadia Lake
Transportation Services
6
$((
million
$million
$ in Thousands
7
ExpensesRevenues
ExpensesRevenues
The results indicate the City, as a whole,
experienced an increase in total net position
of $37 million which was a combination of
revenues exceeding expenses.
*Does not include transfers.
This summary report excludes transfers.
Transfers are used to support Government
services. For full disclosure see our ACFR note
section 3.F Interfund Balances and Activities.
NOTES
$0In Thousands
2017 2018 2019 2020 2021
20,000
40,000
60,000
80,000
100,000
120,000
140,000
The City’s governmental activities’ increase
in net position of $6.5 million represents a
77% decrease from the prior year's change
in net position and is primarily the result of an
increase in capital grants and contributions
related to streets and an increase in sales and
use tax. In addition, expenses increased by
20% and operating grants and contributions
decreased 39%.
$0In Thousands
2017 2018 2019 2020 2021
50,000
100,000
150,000
200,000
The business-type activities' increase in net
position of $30.5 million represents a 9%
decrease from the prior year's change in net
position which is largely attributable to the
increase in expenses and an increase in capital
grants and contributions.
8
A combination of overall expenses staying relatively in line with revenue collections.
9
10
Pension Liability Reported
As of June 30, 2021
Oklahoma Firefighters Pension and Retirement System reported: Liability of $49,539,163
Oklahoma Police Pension and Retirement System reported: Liability of $4,056,072
City of Edmond Employees’ Retirement System reported: Liability of $32,265,392
Changes for the Year
Service Cost $396,676
Interest Expense $246,275
Differences in Expected & Actual Experience $19,995
Changes in Assumptions $1,020,944
Benefits Paid
Net Changes
$(278,374)
$1,405,476
The following presents the City’s total OPEB liability, as well as what the City’s total OPEB
liability would be if it were calculated using a discount rate that is 1-percentage-point lower
(1.21 percent) or 1-percentage-point higher (3.21 percent) than the current discount rate:
1% Decrease (1.21%)Current Discount Rate (2.21%)1% Increase (3.21%)
$8,965,955 $8,045,239 $7,238,800
The total OPEB liability was determined based on actuarial valuation performed as of
June 30, 2020 which is also the measurement date.
The total OPEB liability in the June 30, 2020 valuation, was determined using the following
actuarial assumptions:
• Actuarial Cost Method - Entry Age Normal
• Discount Rate - 2.21% based on the 20 year
municipal bond yield
• Retirement Age - Civilians - 55 with 7 years
of service, Police and Fire 20 years of service
• Medical Trend Rates
2019 6.02%
2020 5.99%
2030 5.99%
2035 5.87%
2040 5.33%
2045 5.15%
2050 5.03%
2060 4.87%
11
governmental revenue by source governmental activities uses
74%
2%
8%
13%
3%
56%
10%
26%
1%
Sales Tax
Other Taxes
Charges for Service
Grants
Other
Public Safety (Fire & Police)
General Government
Culture, Parks and Recreation
Streets and Highways
Health and Welfare
7%
13
The State of Oklahoma tax rate is 4.5% and is added to the 3.75% City’s sales tax rate that is levied on all taxable sales within the City. It is recorded as follows:
Two cents recorded within the General Fund.
One eighth cent recorded as revenue within the Park Sales Tax Fund to account for operations and facility improvement costs of the City’s park and recreation system.
Three quarter cent recorded as revenue within the 2000 Capital Improvement Tax Fund to account for capital improvements as recommended to the City Council by the Capital Projects & Financing Task Force.
One quarter cent recorded as revenue within the Fire Public Safety Limited Tax Fund to account for improve-ments to the fire department per voter approval.
One eighth cent recorded as revenue within the Police Public Safety Limited Tax Fund to account for improve-ments to the police department per voter approval.
One half cent recorded as revenue within the 2017 Capital Improvement Tax Fund for various capital improvements. This fund replaces the 2012 Public Safety Center Capital Improvements Tax Fund. This was voted on by our voters in April 2016 and will continue for 10 years.
8.85% Mustang
8.85% Yukon
8.625% Oklahoma City
9.1% Midwest City
8.50% Moore
8.75% Norman
The City provides a wide range of municipal
services, including police and fire protection,
the construction and maintenance of highways,
streets, and other infrastructure. The City also
provides electric, water, wastewater, drainage
and solid waste services to its residents under
the legal entity of the Edmond Public Works
Authority (EPWA). The City also provides a multi-
tude of recreational and cultural events through-
out the year. The City’s Kickingbird Golf Course,
Arcadia Lake and many City parks provides hours
of entertainment to our citizens.
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.
CITY SERVICES %
12
15
%
14
Sales and Use Taxes
Of the 3 3/4 cent sales tax on taxable sales within
the City, 2 cents is recorded as revenue in the General
Fund. Use tax is if you have purchased items for
use in Oklahoma from retailers who do not collect
Oklahoma sales tax, you owe Oklahoma use tax on
those items. Use tax is paid by the buyer when the
Oklahoma sales tax has not been collected by the
seller. This includes purchases made from an out-of-
state retailer whether by mail order, catalog, television
shopping networks, radio, Internet, phone or in person.
Charges for Services
Includes all revenues collected on services provided
through the General Fund, such as planning filing
fees, cemetery revenues, right of way, animal welfare
welfare fees, 911 service fee, aquatic center
admissions season passes, recreation program fees
and other miscellaneious charges.
Fines and Forfeitures
Includes all court fines and fees, and building code
violations.
Franchise and Public Service Taxes
Includes fees assessed for private use of
public property.
Intergovernmental
Activities of two or more governments including
revenues such as alcoholic beverage tax, cigarette
tax, county-property resale, grants, commercial
vehicle tax, and gasoline excise tax.
Licenses and Permits
Includes all permits and licenses required by the City
including engineering inspections fees, occupational
licenses, oil and gas feed, public safety revenues
including plumbing, building, elecrical, heat/air,
furniture stocking, fixture stocking, fire permits,
miscellaneous permits, contracor registration, re-
inspection fees, temporary certificate of occupancy,
building inspection feed, sign permits, and commercial
plan review fees.
Miscellaneous
Items that are not covered by any of the
aforementioned categories.
Investment Income
Revenue earned brom our investments portfolio.
General Government
Includes city council, municipal court, planning,
Downtown Community Center and airport
maintenance and repairs.
Public Safety
Expenditures within the funds that supports the
safety of our citizens, such as police, fire, emergency
management, and animal welfare.
Health and Welfare
Includes code enforcement, family services, and
social services.
Culture, Parks and Recreation
Includes maintenance and administration of 26
parks/playgrounds, pool, splash pad, sports fields,
Festival Marketplace, recreation programs, Senior
Center, Gracelawn Cemetery, and Edmond Historical
Preservation and Trust.
Streets and Highways
Street rehabilitation and resurfacing, and upkeep
of the medians.
Capital Outlay
Expenditures for assets that are intended to be held
or used for a extended period of time. Includes land,
land improvements, building, building improvements,
machinery, equipment, and furniture and fixtures.
Also includes infrastructure such as streets,
sidewalks, culverts, curbs, roads and bridges.
2021 2020 2019 2018 2017
6,818,355 6,373,715 5,545,128 5,370,175
2,958,977 3,015,627 2,987,164 2,955,869
729,418 710,882 692,581 648,896
4,212,845 4,088,628 4,078,792 3,718,180
6,343,809 6,280,570 5,488,301 5,377,604
671,465 1,012,056 455,971 2,027,680
21,734,869 21,481,478 19,247,937 20,098,404
2021 2020 2019 2018 2017
48,939,746 46,328,395 41,601,211 38,693,158
6,166,114 6,453,165 6,054,249 6,780,188
1,653,304 1,854,649 1,628,740 2,267,734
2,075,062 2,121,326 2,173,068 2,142,557
1,957,033 1,793,530 1,819,583 1,976,671
1,625,110 1,544,064 1,446,443 1,452,924
182,135 167,303 222,053 148,255
222,643 257,128 73,971 44,619
62,821,147 60,519,560 55,019,318 53,506,106
*Per City ordinance, 30% of General Fund revenues are transferred and used for funding the
Fire Department operations and 36.8 % of these same revenues will be used for funding Police
Department operations.For more information, refer Basic Financial Statements in ACFR, page 52.
.
Sales and Use Taxes
Charges for Services*
Fines and Forfeitures
Franchise & Public Service Tax
Intergovernmental
Licenses and Permits
Miscellaneous
Investment Income
General Government
Public Safety
Health and Welfare
Culture, Parks and Recreation
Streets and Highways
Capital Outlay
$0
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
30,000,000
$35,000,000
$40,000,000
2020 2021201820192017
$45,000,000
$50,000,000
$55,000,000
Sales and Use Taxes
All other Revenues
The General Fund is the primary operating fund for
City services. It is used for all activities except
those legally or administratively required to be
accounted for in other funds.
NOTES
16 17
The 'unassigned' fund balance is an indication of
the amount of available resources the City has at
a point in time to fund emergencies, shortfalls or
other unexpected needs.
In this analysis only the General Fund information
is reported and is based on revenues. In our model,
10% is considered a minimum responsible level,
while 30% is considered responsible.
It is management's 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). During fiscal
year 2021, several natural disasters occurred that
caused the city to use the emergency amounts.
The city expects a portion of the funds to be
reimbursed by FEMA.
See our complete disclosed information in our
ACFR Basic Financial Statements, pages 32, 34,
and 50.
NOTES
3
6
9
12
15
0%
2017 2019 2020 20212018
-3
18
The City of Edmond's goal to maintain a 10% balance on the General Fund Unassigned Fund
Balance was not met in Fiscal Year 2021 due to emergency costs from natural disasters.
19
Accrued absences
Revenue bonds*
Note payable
Capital Lease
Total (Thousands)
2021 2020 2021 2020 2021 2020 % of Change
At fiscal year end, the City had $266 million in
long-term debt outstanding which represents
a decrease of $1.4million or 0.5% from the
prior year.
In April 2021, the City of Edmond did a
Refunding on the 2012 and 2014 Series
Bonds and is now the 2021 Series.
See our complete disclosed information in
our ACFR Notes Section 3E, Long-Term Debt.
NOTES
All bonds are secured by utility revenues and pledged sales tax
Series Sales Tax & Original Utility System Bonds Issue Amount Original Date Final Maturity Total
2013 13,710 5/14/2013 7/1/2023 3,030
2014b 20,280 12/9/2014 7/1/2026 10,235
2021 7,755 4/1/2021 7/1/2023 5,026
$ in Thousands 18,291
All bonds are secured by utility revenues
Utility System Original Refunding Bonds Issue Amount Original Date Final Maturity Total
2015 20,456 4/2/2015 7/1/2023 9,445
2016 41,795 7/5/2016 7/1/2046 39,595
2017 167,025 10/19/2017 7/1/2047 161,755
205,095
20
$ in Thousands
$ 5,168 $4,668 $898 $860 $ 6,066 $ 5,528 10%
13,265 28,406 205,095 216,044 218,360 244,450 -11%
6,015 35,835 17,742 41,850 17,742 136%
$24,448 $33,074 $241,828 $234,646 $266,276 $267,720 -1%
21
22 23
Government Finance Officers Association
Award for Outstanding Achievement in Popular Annual Financial Reporting
Presented to
City of Edmond
Oklahoma
For its Annual Financial Report
for the Fiscal Year Ended June 30, 2020
Executive Director/CEO
The Government Finance Officers Association of
the United States and Canada (GFOA) has given an
Award for Outstanding Achievement in Popular Annual
Financial Reporting to the City of Edmond, Oklahoma
for its Popular Annual Financial Report for the fiscal
year ended June 30, 2020 . The Award for Outstanding
Achievement in Popular Annual Financial Reporting is a
prestigious national award recognizing conformance with
the highest standards for preparation of state and local
government popular reports.
In order to receive an Award for Outstanding Achievement
in Popular Annual Financial Reporting, a government
unit must publish a Popular Annual Financial Report, whose
contents conform to program standards of creativity,
presentation, understandability and reader appeal.
An Award for Outstanding Achievement in Popular Annual
Financial Reporting is valid for a period of one year. City
of Edmond, Oklahoma has received a Popular Award for
the last eleven consecutive years (fiscal years ended
2010–2020). We believe our current report continues
to conform to the Popular Annual Financial Reporting
requirements, and we are submitting it to GFOA.
NOTES
2524
This chart reflects the actual amount of sales tax
for the General Fund received for the last 4 fiscal
years ending June 30, 2021. Sales tax collections
for FY20-21 were up, ending the fiscal year at an
overall net increase of 6.61% over the prior year.
YTD collections (through November 2021) for FY
21-22 are up from FY20-21 by 7.40%
2021
CITIZEN'S REPORT
City of Edmond, Oklahoma
Fiscal Year Ending June 30, 2021
7 North Broadway
Edmond, Oklahoma 73034
(405) 359– 4521 • edmondok.com