2011 City of Edmond, Oklahoma Citizen's Report

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Tightening up...

2011 city of edmond, oklahoma citizen’s report Ending Fiscal Year June 30,2011

Tightening up...

2011 city of edmond, oklahoma citizen’s report

Ending Fiscal Year June 30,2011

Table of Contents

Director’s Letter 1

City Council and Ward Map 2

Statement of Net Assets 4

Change in Net Assets 7

Edmond’s Sales Tax 8

Edmond's Numbers 10

General Fund 12

Long-Term Debt 16

Resident's Survey Results 18

Electric Utility Rates 20

Edmond's Top Employers 22

Economic Outlook 24

TRUSTWORTHY SERVICE T H R O U G H C O N T I N U O U S I M P R OV E M E N T

Dear Citizens of Edmond, We are pleased to present our Citizen's Report (Popular Annual Financial Report) for the fiscal year ending June 30, 2011. The Citizen’s Report is a snapshot of our Comprehensive Annual Financial Report (CAFR), which is located on our website at www.edmondok.com/cafr The PAFR format is designed to be easy to understand for the non financial reader.

Ross VanderHamm Director of Financial Services ross.vanderhamm@edmondok.com (405) 359 – 4521

The City of Edmond made great strides in preparing the budget for the 2010 –2011 fiscal year, and through the City’s “tightening the belt” on expenditures, we have created a healthier financial statement to present to you. Several areas created a healthier financial picture for the City of Edmond. First, the City looked hard at the budget and tightened where we could without compromising the services provided to you. Secondly, our sales tax increased over the projected budget, which eases operation costs. We also had an increase in commercial permits which translates to more retail stores opening in the City. Those permits include many restaurants and grocery stores, an apartment complex, and a new Integris hospital. Sales tax will be generated from these retail stores in the future months and years. A third hospital, Mercy, is in the process of being built which will serve as a prototype of all Mercy’s hospitals across Oklahoma, Arkansas, Kansas and Missouri. City of Edmond was listed #1 on CNBC’s list of “Best Suburbs” and we continue to draw new commercial retailers to our City as well as new families to attend our great school system.

Finally, our TotalCare Ambulance Program was implemented in FY10 and is in its second full year.

Customers were allowed to sign up or opt out of the $3 fee per month which covers you and your permanent residents of your home ambulance coverage should the need arise. By funding these services through a special fee, we free up the General Fund tax dollars. This has helped reverse the trend of our dwindling reserves (called unassigned fund balance) in the General Fund. All these steps have been a positive, upbeat improvement in our finances.

The details in this Citizen’s report summarize our City’s financial position based on the audited financial documents contained in the 2011 Comprehensive Annual Financial Report (CAFR).

Although the CAFR is prepared in according with Accounting Principles Generally Accepted in the United States of America, this report is in summary form and excludes the City’s discretely presented component units: the Edmond Economic Development Authority (EEDA) and the Edmond Historical Preservation Trust (EHPT).

As you review the report, we invite you to share any questions, concerns, or comments you may have. The fully disclosed CAFR and PAFR may be found online at www.edmondok.com/budget/reports Respectfully,

Ross VanderHamm Director of Financial Services

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Planning for a healthy future...

The City of Edmond is a full service city that emphasizes responsiveness, financial accountability and transparency.

We operate under a Council-Manager form of government established by the 1925 Charter. The Mayor and Council are the policy-making and legislative body, and appoint the City Manager as well as the City Attorney and Municipal Judges. The City Manager provides centralized direction and leadership for the day-to-day administration of city services.

Charles Lamb Mayor October 2011–13 chukolamb@aol.com

■ Victoria Caldwell Council Member Ward 1 May 2011–15 victoria.caldwell@edmondok.com

■

Darrell Davis Council Member Ward 3 November 2011–May 2013 darrell.davis@edmondok.com

■

David Miller Council Member Ward 4 May 2009–13 dc-miller@att.net

Stephen Schaus City Treasurer May 2009–13

■

Elizabeth Waner Council Member Ward 2 May 2011–15 ebwaner@gmail.com

city of edmond ward map

15th

33rd

WARD 3

Memorial

3

Choctaw

WARD 1 Edmond

Henney

Danforth

Hiwassee

WARD 2

Anderson

ion

WARD 4

Westminister

x tens

Covell

Post

way E

I-35

Coffee Creek

Douglas

Bro ad

Sorghum Mill

Midwest

Air Depot

Sooner

Coltrane

Bryant

Boulevard

Kelly

Santa Fe

Western

Pennsylvania

Waterloo

Statement of Net Assets Net Assets indicate the amount of unexpended and available resources the City has in funds combined at a point in time to fund emergencies, shortfalls or other unexpected needs. This allows management to track the City's financial position over time.

The Governmental Activities Net Assets for fiscal year ending June 30, 2011, reflect a significant increase in the amount of unrestricted funds as opposed to last year. By tightening up the budget we were able to increase the amount of money in this Unrestricted Fund Balance. The full disclosed Statement of Net Assets can be located in our CAFR at www.edmondok.com/cafr

governmental activities

business-t ype activities

$ in Thousands

2010 Restated

Current assets

$ 89,598

$91,692

$83,218

$82,104

$172,816

$173,796

217,734

219,315

190,062

198,498

407,796

417,813

11,229

10,093

9,248

9,016

20,477

19,109

318,561

321,100

282,528

289,618

601,089

610,718

Capital assets,net Other non-current assets Total Assets

2011

2010 Restated

2011

Totals 2010 Restated

2011

Current liabilities

15,542

15,170

20,307

19,006

35,849

34,176

Non-current liabilities

70,589

67,803

67,460

66,088

138,049

133,891

Total Liabilities

86,131

82,973

87,767

85,094

173,898

168,067

Deferred Inflows

3,263

2,299

2,168

1,876

5,431

4,175

Net Assets Invested in capital assets, net of related debt 165,225 152,756 117,163 130,308

282,388

283,064

Enabling legislation

8,350

8,350

Statutory requirements

1,079

1,079

Restricted by:

External contracts

66,139

57,288

11,431

11,103

77,570

68,391

Unrestricted

(2,197)

16,355

63,999

61,237

61,802

77,592

$ 229,167

$235,828

$192,593

$202,648

$421,760

$438,476

Total net assets

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Net Assets unrestricted These numbers represent the available funds to pay for emergencies, shortfalls or other unexpected needs in both the Governmental and Business Type Activities for the fiscal year ending June 30, 2011.

16.3M 61.2M

$

governmental activities

Sales tax, franchise fees, fines, state and federal grants finance most of the City's services.

General Administrative Services Fire Police Street Construction & Repair Park Maintenance

$

business-t ype activities

Income from resident utility bills, public golf club and lake fees finance business-type operations.

Electricity Water Drainage Wastewater Solid Waste KickingBird Golf Club Arcadia Lake 5

Water, the source of all good health...

The City has been methodically rehabilitating all our water towers.

I-35 water tower (the tallest one) was completed in 2009, while the Post Road water tower was completed in 2010. The 33rd Street ground storage tank was completely rehabilitated in 2011. The 33rd Street tower is on schedule for capital improvements in the FY13 budget. The storage capacity of Edmond’s six water towers and their companion ground storage tanks combined total approximately 12 million gallons, while the two clearwells located at the water plant provide approximately 4 million gallons storage capacity each.

Change in Net Assets governmental activities * Revenues

Expenses

The City’s governmental services increase in net assets of $6.7 million represents a 29% decrease from the prior year’s change in net assets and is primarily the result of decreased capital grants and contributions. In 2010, the grant money received was three times the amount the City received in 2011, due to Stimulus grants issued by the Federal Government.

80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 In Thousands

$0 2007

2008

2009

2010

2011

business-t ype activities * Revenues

Expenses

The business-type activities’ increase in net assets of $10.1 million represents a 36% increase from the prior year’s change in net assets which is largely attributable to the increase in charges for services. The City had a rate increase on both water and wastewater fees in 2010, creating additional revenues. The rate increase in part is funding a 50 year Water Master Plan.

120,000

100,000

80,000

60,000

40,000

20,000

In Thousands $0 2007

2008

2009

2010

2011

* Does not include transfers.

This summary report excludes tranfers. Transfers are used to support Government services.

For full disclosure see our CAFR note section 3.F Interfund Balances and Activities.

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Edmond’s Sales Tax supports city services

7.75

%

surrounding cities

8.50% 8.50% 8.375% 8.35% 8.00% 8.00%

Mustang Yukon Oklahoma City Midwest City Moore Norman

sales ta x breakdown

The City levies a 3 ¼ cent sales tax on taxable sales within the City. It is recorded as follows:

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

Two cents recorded within the General Fund.

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

One eighth cent recorded as revenue within the Police Public Safety Limited Tax Fund to account for improvements to the police department per voter approval.

Three quarter cent recorded as revenue within the 2000 Capital Improvement Tax Fund to account for capital improvements as recommended to the City Council by the Capital Projects & Financing Task Force.

Beginning April 1, 2012, a ½ cent sales tax was voted on and approved to fund the new Public Safety Center.

This additional sales tax will sunset after 5 years. This Public Safety Center will be designed to combine the Edmond Police Department with Central Communications and Emergency Management into a new 75,000 square foot building.

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Where does the money come from? governmental revenue by source 4% 2% 15% Sales and Use Taxes Grants

63% 16%

Charges of Service Franchise & Hotel/Motel Taxes Other

Where does the money go? governmental activities uses 4%

4%

8% Public Safety Streets & Highways

8%

General Government Culture, Parks and Recreation

60% 16%

Interest on Long-Term Debt Health & Welfare

9

4.08

average response time minutes

23

cit y playgrounds

50.1

%

4.2

residents with college degrees or higher

% unemployment rate

General Fund The General Fund is the primary operating fund for City services. It is used for all activities except those legally or administratively required to be accounted for in other funds.

general fund revenues * FY10

FY11 In Millions $0

5

10

15

20

25

30

5

10

15

20

25

30

Sales and Use Taxes Charges for Services Fines and Forfeitures Franchise & Public Service Tax Intergovernmental Licenses and Permits Hotel/Motel Taxes Miscellaneous Investment Income $0

general fund expenditures * FY10

FY11 In Millions $0

1

2

3

4

5

1

2

3

4

5

General Government Public Safety Health and Welfare Culture, Parks and Recreation Streets and Highways Capital Outlay

$0

*These graphs do not include transfers. Chart reflects direct operating revenues and expenses.

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General Fund explanation of terms general fund revenues Sales and Use Taxes Of the 3 Âź cent sales tax on taxable sales within the City, 2 cents is recorded as revenue in the General Fund. Use tax is if you have purchased items for use in Oklahoma from retailers who do not collect Oklahoma sales tax, you owe Oklahoma use tax on those items.

Use tax is paid by the buyer when the Oklahoma sales tax has not been collected by the seller. This includes purchases made from an out-of-state retailer whether by mail order, catalog, television shopping networks, radio, Internet, phone or in person.

Intergovernmental Activities of two or more governments including revenues such as alcoholic beverage tax, cigarette tax, county – property resale, grants, commercial vehicle tax, and gasoline excise tax.

Licenses and Permits Includes all permits and licenses required by the City including engineering inspections fees, occupational licenses, contractor registration, food handling licenses, oil and gas fees, public safety revenues including plumbing, building, electrical, heat/air, furniture stocking, fixture stocking, fire permits, miscellaneous permits, contractor registration, re-inspection fees, temporary certificate of occupancy, building inspection fees, sign permits, and commercial plan review fees.

Charges for Services Includes all revenues collected on services provided through the General Fund, such as planning filing fees, cemetery revenues, right-of-way fees, Animal Welfare fees, 911 service fee, aquatic center admissions season passes, recreation program fees and other miscellaneous charges.

Hotel/Motel Taxes A 4% tax upon the gross receipts derived from all rent for every occupancy of a room in a hotel in the City.

Fines and Forfeitures Includes all court fines and fees, and building code violations.

Miscellaneous Items that are not covered by any of the aforementioned categories.

Franchise & Public Service Taxes Includes fees assessed for private use of public property.

Investment Income Revenue earned from our investment portfolio.

general fund expenditures General Government Includes city council, municipal court, planning, vehicle service of Citylink buses, Downtown Community Center, and airport maintenance and repairs.

Streets and Highways Street rehabilitation and resurfacing, and upkeep of the medians.

Capital Outlay Expenditures for assets that are intended to be held or used for an extended period of time. Includes land, land improvements, building, building improvements, machinery, equipment, and furniture and fixtures. Also includes infrastructure such as streets, sidewalks, culverts, curbs, roads and bridges. It is tangible in nature and must be in excess of $5,000 per item.

Public Safety Expenditures within the funds that support the safety of our citizens, such as police, fire, emergency management, and animal welfare.

Health and Welfare Includes code enforcement, family services, and social services.

Culture, Parks and Recreation Includes maintenance and administration of 26 parks/playgrounds, pool, sports fields, Festival Marketplace, Edmond Land Conservancy Inc., recreation programs, Senior Center, Gracelawn Cemetery, and Edmond Historical Preservation and Trust.

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Generating a healthier financial future Edmond’s new Integris Hospital which includes a Jim Thorpe Outpatient Physical Therapy Clinic will assist residents with their health needs. Not only did the construction of this hospital create revenues in the form of increased permit revenues, it will undoubtedly bring in more revenue to our hotels/motels and restaurants as visitors come from around the state to participate in health and wellness.

General Fund unassigned fund balance 12 10 8 6 4 2 0%

2007

2008

2009

2010

2011

The ‘unassigned’ fund balance is an indication of the amount of available resources the City has at a point in time to fund emergencies, shortfalls or other unexpected needs. In this analysis only the General Fund information is reported. In our model, 10% is considered a minimum responsible level, while 30% is considered responsible. As you can see by the above chart, we have tightened up and were able to exceed that 10% responsible level. We continue to strive toward the 30% level. See our complete disclosed information in our CAFR, Basic Financial Statements.

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Long-Term Debt At fiscal year end, the City had $140.8 million in long-term debt outstanding which represents a $7.5 million or 5.1% decrease from the prior year.

$ in Thousands

governmental activities

business-t ype activities

2010

2011

Accrued absences

$2,670

$ 2,623

$ 508

Revenue bonds*

69,390

66,845

Note payable Total

$72,060

$69,468

2010

Totals

2011

2010

2011

$ 495

$3,178

$ 3,118

-1.89%

54,590

50,695

123,980

117,540

-5.19%

21,157

20,097

21,157

20,097

-5.01%

$76,255

$71,287

$148,315

$140,755

-5.10%

revenue bonds payable: governmental activities * All bonds are secured by utility revenues and pledged sales tax

Series Sales Tax & Utility System Bonds

Original Date

Final Maturity

2003 1/1/2003 7/1/2023

2004 6/1/2004 7/1/2024

2005 12/1/2006 7/1/2026

2010 12/30/2010 7/1/2021

$ in Thousands

Total

$13,810 14,795 24,905 13,335

$66,845

revenue bonds payable: business-t ype activities * All bonds are secured by utility revenues

Utility System Refunding Bonds

Original Issue Amount

Original Date

Final Maturity

2003A $ 6,615 11/1/2003 1/1/2014

2003B 2,120 11/1/2003 1/1/2024

2004 14,700 6/1/2004 1/1/2024

2005 40,435 10/1/2005 7/1/2024

$ in Thousands

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Total

$ 2,225 1,555 11,485 35,430 $50,695

% of Change

943,558

$

economic gain!

In 2010, City Treasurer Steven Schaus identified the Sales Tax and Utility System Revenue Bond, Series 2001 for refunding. This bond series was originally issued on September 1, 2001 at an interest rate range of 3.50%, for 20 years. Its current outstanding balance is $13,075,000 with a remaining interest rate average of 4.59%. Bids were requested and a rate of 2.84% was accepted resulting in an economic gain of $943,558 for the City.

For more information on the Revenue Bonds and the Refunding of the 2001 Series, see 3.E section of the Notes to Basic Financial Statements.

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A healthy choice for our resident consumers Over the past fiscal year, the City of Edmond saw a healthy increase in commercial building permits. A large portion of these were from the grocery retail sector. Uptown Grocery Co., Sunflower Farmers Market and The Meat House to name a few have decided to set up shop in Edmond providing our residents with a wider variety of shopping options as well as a healthier economic outlook.

Resident’s Survey Results Researchers contacted 400 Edmond residents from age 18 and older on Oct. 23-25 to participate in this survey. A vast majority of residents surveyed — 96 percent — reported being satisfied with their overall quality of life, and 97 percent of those who responded feel that Edmond is “A Great Place to Grow”.

96.0 2011 summary of results Overall quality of life in Edmond

96%

Quality of life in Edmond as a place to retire

86

Satisfaction with your neighborhood

96

Satisfaction with planning for future growth

71

Satisfaction with roads and highways

72

Satisfaction with Edmond Electric Service

82

Overall services provided by Edmond

92

Feeling of safety in Edmond

97

19

% overall satisfaction

Electric Utility Rates The monthly fees for utility rates include both the customer charge and the energy charge based on the time of year for the total dollar per kWh used. Refer to our CAFR stat table which provides a breakdown of the complete Rate Schedule for the City of Edmond.

customer charge Edmond Electric

$13

13 12.90 12.80 12.70 12.60 12.50

OG&E

$12.48

12.40 12.30 12.20 12.10 $12

20

.097

$.0968

.095 .093

Summer june – september Average Temperature: 78˚ F Average Humidity: 69%

.091 .089 .087 .085

$.084

.083 .081

$.0833

$.0806

.079 $.077

First 1400 kWh

Over 1400 kWh

$.084

$.084

.085

Shoulder may – october Average Temperature: 74˚ F Average Humidity: 69% “Shoulder” is a term used to identify the months on each side of the Summer and Winter rate periods.

.084 .083 .082 .081

$.0806

$.0806

.080 .079 $.078

First 600 kWh

.09 $.0806

.08

Winter november – april Average Temperature: 46˚ F Average Humidity: 68%

Over 600 kWh

$.084

.07 .06 .05

$.045

$.047

.04 .03 .02 .01 $0

First 600 kWh

21

Over 600 kWh

Edmond's Top Employers Edmond Public Schools*

Petra Industries

University of Central Oklahoma

Unit Parts

City of Edmond

Cox Communications

Adfitech

Pelco Products

OU Medical Center Edmond

Innovative Healthcare Systems

* 16 Elementary, 5 Middle School, 3 High School

180

133

89

265 300

450 2526

497

660

1191

The information above is provided by the Edmond Economic Development Authority. All companies listed in the Top Employers section are headquartered in the City of Edmond and must meet this criteria to be included in this report.

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21,558 Healthy Growth in Education

The City of Edmond had an increase in enrollment of 200 students from FY10 to FY11.

school enrollment

Economic Outlook f y11 – 12 general fund's sales ta x FY11 Actuals

FY12 Actuals

3.0

2.5

2.0

1.5

1.0

$ In Millions 0.5 JUL

AUG

SEP

OCT

NOV

DEC

JAN

FEB

MAR

APR

This chart reflects the actual amount of sales tax received for the entire fiscal year ending June 30, 2011. The sales tax revenues for 2012 thus far has exceeded our actual from last year for the first 5 months of fiscal year 2012.

December’s revenues fell below last year; however, the overall accumulative growth is 3.37% so far this year.

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MAY

JUN

Outstanding Achievement

The Government Finance Officers Association of the United States and Canada (GFOA) has given an Award for Outstanding Achievement in Popular Annual Financial Reporting to the City of Edmond, Oklahoma for its Popular Annual Financial Report for the fiscal year ended June 30, 2010. The Award for Outstanding Achievement in Popular Annual Financial Reporting is a prestigious national award recognizing conformance with the highest standards for preparation of state and local government popular reports.

In order to receive an Award for Outstanding Achievement in Popular Annual Financial Reporting, a government unit must publish a Popular Annual Financial Report, whose contents conform to program standards of creativity, presentation, understandability and reader appeal.

An Award for Outstanding Achievement in Popular Annual Financial Reporting is valid for a period of one year only. We believe our current report continues to conform to the Popular Annual Financial Reporting requirements, and we are submitting it to GFOA.

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Tightening up...

2011 city of edmond, oklahoma citizen’s report Ending Fiscal Year June 30,2011

100 East First Street • Edmond, Oklahoma 73034 • (405) 359 –4521 • edmondok.com 28