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Home My WebLink About2022.01.18_City Council AgendaPUBLIC NOTICE OF THE MEETING OF THE OWASSO CITY COUNCIL Council Chambers Old Central Building 109 North Birch, Owasso, OK Tuesday, January 18, 2022 - 6:30 PM NOTE. APPROPRIATE ACTION may include, but is not limited to: acknowledging, affirming, amending, approving, authorizing, awarding, denying, postponing, or fabling. AGENDA 1. Call to Order Mayor Bill Bush RECEIVED 2. Invocation Pastor Chris Wall of First Baptist Church of Owasso JAN 14 2022 C 3. Flag Salute City Clerk's Office 4. Roll Call 5. Presentation of the Employee of the Quarter Warren Lehr 6. Consideration and appropriate action relating to a request for approval of the Consent Agenda. (All matters listed under "Consent" are considered by the City Council to be routine and will be enacted by one motion. Any Councilor may, however, remove an item from the Consent Agenda by request. A motion to adopt the Consent Agenda is non - debatable.) A. Approve minutes - January 4, 2022, and January 11, 2022, Regular Meetings B. Approve claims 7. Consideration and appropriate action relating to items removed from the Consent Agenda 8. Consideration and appropriate action relating to the appointment of Kyle Davis to serve the remainder of a vacated term on the Board of Adjustment, said term to expire June 30, 2022 Mayor Bush 9. Consideration and appropriate action relating to Ordinance 1189, approving a Planned Unit Development and Rezoning from Agriculture (AG) to Commercial Shopping (CS) and Residential Multi- Family (RM) of approximately 16.86 acres located at the southeast corner of East 86th Street North and North Memorial Road, as referenced in Applications OPUD 22 -01 and OZ 22 -02 Karl Fritschen Staff recommends adoption of Ordinance 1189. 10. Consideration and appropriate action relating to the partial vacation of the Presley Hollow Plat, Lots 20, 21, 22, and 23 of Block 1, located at 7906, 7908, 7910, and 7912 North 1451h East Court Karl Fritschen Staff recommends approval of the partial plat vacation for Presley Hollow, Lots 20, 21, 22, and 23 of Block 1. 11. Consideration and appropriate action relating to a final plat for Presley Hollow Lots 20 -23 Amended, containing approximately 0.58 acres, located on the north side of East 76th Street North and just east of North 145th East Avenue Karl Fritschen Staff recommends approval of the Presley Hollow Lots 20 -23 Amended Final Plat. Owasso City Council January 18, 2022 Page 2 12. Consideration and appropriate action relating to an amendment to the Real Estate Purchasing Agreement, dated November 17, 2020, as referenced in Ordinance 1173, for the sale of surplus property located at the northeast corner of East 96th street North and Mingo Road Warren Lehr Staff recommends approval to amend Section 4.3, Permitting Period of the Real Estate Purchasing Agreement, by extending the time period from 120 days to 210 days. 13. Consideration and appropriate action relating to an agreement for economic development services between the Owasso Chamber of Commerce and the City of Owasso Warren Lehr 14. Report from City Manager 15. Report from City Attorney 16. Report from City Councilors 17. Official Notices (documents for acknowledgment of receipt or information only, no discussion or action will be taken) • Payroll Payment Report - Pay Period Ending Date January 1, 2022 • Health Care Self- Insurance Claims - dated as of January 13, 2022 Monthly Budget Status Report - December 2021 FY 2020 -2021 Comprehensive Annual Financial Report and filing of the City's annual financial audit for Fiscal Year Ending June 30, 2021 18. New Business (New Business is any item of business which could not have been foreseen at the time of posting of the agenda) 19. Adjournment Notice of Public Meeting filed in the office of the City Clerk on Friday, December 10, 2021, and the Agenda posted at City Hall, 200 South Main Street, at 1:00 pm on Friday, January 14, 2022. M. Stevens, City Clerk The City of Owasso encourages citizen participation. To regilest an accommodation due to a disability, contact the City Clerk at least 48 hours prior to the scheduled meeting by phone 918- 376 -1502 or by email to jstevens@cityofowasso.com OWASSO CITY COUNCIL, PUBLIC WORKS AUTHORITY, AND PUBLIC GOLF AUTHORITY MINUTES OF JOINT REGULAR MEETING TUESDAY, JANUARY 11, 2022 The Owasso City Council, Owasso Public Works Authority (OPWA), and Owasso Public Golf Authority (OPGA) met in a joint regular meeting on Tuesday, January 11, 2022, in the Council Chambers at Old Central, 109 North Birch Street, Owasso, Oklahoma, per the Notice of Public Meeting filed Friday, December 10, 2021; and the Agenda filed in the office of the City Clerk and posted at City Hall, 200 South Main Street, at 12:00 pm on Friday, January 7, 2022. 1. Call to Order /Roll Call Mayor /Chair Bill Bush called the meeting to order at 6:00 pm. Present Absent Mayor /Chair - Bill Bush None Vice Mayor /Vice Chair - Kelly Lewis Councilor /Trustee - Alvin Fruga Councilor /Trustee - Doug Bonebrake Councilor /Trustee - Lyndell Dunn A quorum was declared present. 2. Presentation and discussion relating to the Fiscal Year 2020 -2021 Audit Linda Jones -Holt, Emily Sheldon, C.P.A. of BT &Co., P.A., and Jack Murray, Vice Chair, Audit Committee, presented the item and discussion was held. 3. Discussion relating to Community Development items A. Request for a planned unit development (OPUD 22 -01) and rezoning (OZ 22 -02) - approximately 16.86 acres located at the southeast corner of East 86th Street North and North Memorial Road from Agriculture (AG) to Commercial Shopping (CS) and Residential Multi - Family (RM) B. Request for partial plat vacation - Lots 20, 21, 22, and 23 of Block 1 of Presley Hollow located at 7906, 7908, 7910, and 7912 North 1451h East Court C. Request for final plat - Presley Hollow Lots 20 -23 Amended - approximately 0.58 acres located on the north side of East 76th Street North and three - fourths (3/) of a mile west of North 161 :r East Avenue Karl Fritschen presented the items and discussion was held. It was further explained these items would be placed on the January 18, 2022, City Council agenda for consideration and action. 4. Discussion relating to bids received for the lease or purchase of a golf cart fleet Corey Burd presented the item and discussion was held. It was further explained that an item would be placed on the January 18, 2022, Owasso Public Golf Authority agenda for consideration and action. 5. Discussion relating to a proposed agreement between the Owasso Chamber of Commerce and the City of Owasso for economic development services Warren Lehr presented the item and discussion was held. Vice Mayor Lewis, Councilor Fruga and Councilor Bonebrake requested an item be placed on the January 18, 2022, City Council agenda for consideration and action. 6. Discussion relating to City /Authority Manager items A. Monthly sales tax report B. City Manager report Warren Lehr introduced Linda Jones -Holt to present item A and discussion was held. Mr. Lehr commented on the Finance Department staff, following the Audit Committee meeting held earlier in the day; and, a luncheon event held by the Oklahoma Municipal Management Services organization. Owasso City Council, OPWA & OPGA January 11, 2022 Page 2 7. City Councilor /Trustee comments and inquiries Councilor Dunn commented on the annual audit. Mayor Bush inquired about a recent water line break in Hale Acres. 8. Adjournment The meeting adjourned at 7:35 pm. Bill Bush, Mayor /Chair Juliann M. Stevens, City Clerk OWASSO CITY COUNCIL / OWASSO PUBLIC WORKS AUTHORITY / OWASSO PUBLIC GOLF AUTHORITY MINUTES OF REGULAR JOINT MEETING TUESDAY, JANUARY 4, 2022 The Owasso City Council, Owasso Public Works Authority (OPWA) and Owasso Public Golf Authority (OPGA) met in joint session on Tuesday, January 4, 2022, in the Council Chambers at Old Central, 109 North Birch, Owasso, Oklahoma per the Notice of Public Meeting filed Friday, December 10, 2021; and the Agenda filed in the office of the City Clerk and posted at City Hall, 200 South Main Street, at 12:00 pm on Thursday, December 30, 2021. 1. Call to Order Mayor Bill Bush called the meeting to order at 6:30pm. 2. Invocation The Invocation was offered by Senior Pastor Andrew Rankin of Freedom Baptist Church 3. Flag Salute Councilor Doug Bonebrake led the flag salute. 4. Roll Call Present Mayor - Bill Bush Councilor - Alvin Fruga Councilor - Doug Bonebrake Councilor - Lyndell Dunn A quorum was declared present. Staff: City Manager - Warren Lehr City Attorney - Julie Lombardi Absent Vice Mayor - Kelly Lewis 5. Presentation of Character Trait of Diligence Michele Dempster presented the character trait for the month of January. 6. Consideration and appropriate action relating to a request for approval of the Consent Agenda. (All matters listed under "Consent" are considered to be routine and will be enacted by one motion. Any Councilor/Trustee may, however, remove an item from the Consent Agenda by request. A motion to adopt the Consent Agenda is non - debatable.) A. Approve City Council Minutes - December 21, 2021, Regular Meeting B. Approve Owasso Public Works Authority Minutes - December 21, 2021, Regular Meeting C. Approve Owasso Public Golf Authority Minutes - December 21, 2021, Regular Meeting D. Approve City of Owasso Claims E. Approve Owasso Public Works Authority Claims F. Approve Owasso Public Golf Authority Claims G. Accept the 2022 Justice Assistance Grant, authorize execution of necessary grant documents with the Oklahoma Attorney General's Office, and approve a budget amendment in the Half - Penny Sales Tax Fund (Police), increasing the estimated revenue and the appropriation for expenditures by $7,500.00 - City Council H. Accept the 2022 Oklahoma Internet Crimes Against Children Task Force Grant, authorize execution of necessary grant documents, and approve a budget amendment in the Half -Penny Sales Tax Fund (Police) increasing the estimated revenue and appropriation for expenditures by $3,880.00 - City Council 1. Accept public infrastructure of asphalt roads, sidewalks, stormwater, water and sanitary sewer system improvements for Abbott Farms Phase III, located on the north side of East 1061h Street North, east of Mingo Road - City Council Mr. Bonebrake moved, seconded by Mr. Dunn to approve the Consent Agenda, as presented with City Council $227,731.44, OPWA claims totaling $1,234,054.19, and OPGA claims totaling $12,376.91. YEA: Bonebrake, Dunn, Fruga, Bush NAY: None Motion carried: 4 -0 Joint Meeting January 4, 2022 Page 2 7. Consideration and appropriate action relating to items removed from the Consent Agenda None 8. Report from City Manager /Authority Manager Warren Lehr introduced Roger Stevens to provide the monthly Public Works project status report and discussion was held. 9. Report from City Attorney /Authority Attorney None 10. Report from City Councilors /Authority Trustees None 11. Official Notices (documents for acknowledgment of receipt or information only, no discussion or action will be taken) The Mayor /Chair acknowledged receipt of the following: • Payroll Payment Report - Pay Period Ending Date December 18, 2021 - City Council • Payroll Payment Report - Pay Period Ending Date December 18, 2021 - Owasso Public Works Authority • Payroll Payment Report - Pay Period Ending Date December 18, 2021 - Owasso Public Golf Authority • Health Care Self- Insurance Claims - dated as of December 29, 2021 • Oklahoma Department of Environmental Quality Permit No. SL000072170806 for Keys Landing II Sanitary Sewer Line Extension 12. New Business (New Business is any item of business which could not have been foreseen at the time of posting of the agenda) None 13. Consideration and appropriate action relating to a request for an executive session, as provided for in Title 25, O.S. § 307(B)(4), for the purposes of discussing confidential communications between the City Council and its Attorneys and providing a litigation update for current condemnation cases Julie Lombardi recommended to enter into executive session. Mr. Dunn moved, seconded by Mr. Fruga to enter into executive session. YEA: Bonebrake, Dunn, Fruga, Bush NAY: None Motion carried: 4 -0 and at 6:47pm, the City Council, along with Warren Roger Stevens, and Nathan Cross entered into executive session. Council returned to open session. 14. Adjournment Mr. Bonebrake moved, seconded by Mr. Dunn to adjourn the meeting. YEA: Bonebrake, Dunn, Fruga, Bush NAY: None Motion carried: 4 -0 and the meeting adjourned at 7:45pm. Bill Bush, Mayor /Chair Juliann M. Stevens, City Clerk Lehr, Julie Lombardi, At 7:45pm, the City Claims List - 1/18/2022 Fund Vendor Name Payable Description Payment Amount 01 GENERAL JPMORGAN CHASE BANK WHITES -BOOTS $5,987.40 FIREFIGHTERS TRNG EQUIP -Total $5,987.40 BLUE ENERGY FUELS LLC CNG FUEL PURCH DEC 21 $40.75 CITY GARAGE CITY GARAGE OH LABOR DEC2 $189.83 VERIZON WIRELESS WIRELESS CONNECTION $80.02 GEN ANIMAL CONTROL -Total $310.60 UNIFIRST HOLDINGS LP UNIFORM SERVICES $20.40 GEN CEMETERY -Total $20.40 OWASSO COMMUNITY THEATRE COMPANY CLASSES $630.00 TEAL DANCE COMPANY LLC CLASSES $300.00 TREASURER PETTY CASH BOOTH REF - BENDER $20.00 TREASURER PETTY CASH BOOTH REFUND - BROTHERS $40.00 GEN COMM CTR DONATIONS -Total $990.00 JPMORGAN CHASE BANK ACADEMY- EQUIPMENT $49.98 JPMORGAN CHASE BANK LOWES- SUPPLIES $18.48 JPMORGAN CHASE BANK MYSRCTR -SVC FEE $900.00 ONEOK INC OKLAHOMA NATURAL GAS NATURAL GAS USAGE $517.55 SUMNERONE INC BASE RATE $228.80 SUMNERONE INC CONTRACT BASE RATE FOR $63.63 DE GEN COMMUNITY CENTER -Total $1,778.44 BLUE ENERGY FUELS LLC CNG FUEL PURCH DEC 21 $32.59 CITY GARAGE CITY GARAGE OH LABOR DEC2 $354.67 FELKINS ENTERPRISES LLC SUPPLIES $165.00 FLEETCOR TECHNOLOGIES FUEL EXP DEC21 $214.77 JPMORGAN CHASE BANK DELL - COMPUTERS $3,946.74 TULSA COUNTY CLERK TULSA COUNTY FILINGS $54.00 VERIZON WIRELESS WIRELESS CONNECTION $404.64 GEN COMMUNITY DEVELOPMENT -Total $5,172.41 BLUE ENERGY FUELS LLC CNG FUEL PURCH DEC 21 $28.55 CITY GARAGE CITY GARAGE OH LABOR DEC2 $67.58 FLEETCOR TECHNOLOGIES FUEL EXP DEC21 $67.90 GEN CULTURE & RECREATION -Total $164.03 JPMORGAN CHASE BANK ADOBE -SUB FEE $29.99 VERIZON WIRELESS WIRELESS CONNECTION $40.01 GEN ECONOMIC DEV -Total $70.00 AT &T CONSOLIDATED PHONE $14.07 CITY GARAGE CITY GARAGE OH LABOR DEC2 $186.67 FLEETCOR TECHNOLOGIES FUEL EXP DEC21 $26.79 JPMORGAN CHASE BANK OFFICE DEPOT -PAPER $34.99 1 Claims List - 1/18/2022 Fund Vendor Name Payable Description Payment Amount 01 GENERAL VERDIGRIS VALLEY ELECTRIC COOP STORM SIREN ELECTRIC $94.57 VERIZON WIRELESS WIRELESS CONNECTION $40.01 GEN EMERG PREPAREDNESS -Total FUEL EXP DEC21 $397.10 CITY GARAGE CITY GARAGE OH LABOR DEC2 $585.17 OLT SOLUTIONS, LLC AUTOCAD ANNUAL $395.27 JPMORGAN CHASE BANK SUBSCRIPT[ $249.53 FLEETCOR TECHNOLOGIES FUEL EXP DEC21 $315.68 JPMORGAN CHASE BANK DELL - MONITOR $435.19 JPMORGAN CHASE BANK HOT LOT - PARKING $10.00 JPMORGAN CHASE BANK OFFICE DEPOT - SUPPLIES $16.84 JPMORGAN CHASE BANK STAPLES -PAPER $92.11 TULSA COUNTY CLERK TULSA COUNTY FILINGS $28.00 UNIFIRST HOLDINGS LP UNIFORM SERVICES $32.92 VERIZON WIRELESS WIRELESS CONNECTION $80.02 GEN ENGINEERING -Total $1,991.20 BT &CO ANNUAL AUDIT $18,000.00 CITY GARAGE CITY GARAGE OH LABOR DEC2 $98.92 FLEETCOR TECHNOLOGIES FUEL EXP DEC21 $19.73 JPMORGAN CHASE BANK DELL- MONITORS $563.18 JPMORGAN CHASE BANK DELL -PC $1,191.43 JPMORGAN CHASE BANK DLX- CHECKS $249.53 JPMORGAN CHASE BANK GFOA -COA REVIEW FEE $530.00 JPMORGAN CHASE BANK OKLA MUN- TRAINING $85.00 SUMNERONE INC COPIER SERVICES $45.00 TREASURER PETTY CASH EMPLOYEE APPRECIATION $107.45 TREASURER PETTY CASH SUPPLIES $13.27 GEN FINANCE -Total $20,903.51 AMERICANCHECKED INC ATTN: BILLING SOLICITOR BACKGROUND $16.55 CHEC AT &T CONSOLIDATED PHONE $1,058.80 INCOG LEGISLATIVE CONSORTIUM $1,634.75 JPMORGAN CHASE BANK AMER WASTE -REF SVC $96.18 MAILROOM FINANCE INC POSTAGE $1,000.00 ONEOK INC OKLAHOMA NATURAL GAS NATURAL GAS USAGE $1,397.78 SUMNERONE INC COPIER SERVICE AND SUPPLI $509.66 TULSA COUNTY CLERK TULSA COUNTY FILINGS $48.00 VERIZON WIRELESS WIRELESS CONNECTION $42.28 GEN GENERAL GOVERNMENT -Total $5,804.110 ONEOK INC OKLAHOMA NATURAL GAS NATURAL GAS USAGE $232.79 GEN HISTORICAL MUSEUM -Total $232.79 COMMUNITYCARE EAP EAP $450.84 E Claims List - 1/18/2022 Fund Vendor Name Payable Description Payment Amount 01 GENERAL JPMORGAN CHASE BANK DELL - MONITORS $580.30 JPMORGAN CHASE BANK OFFICE DEPOT - SUPPLIES $7.00 GEN HUMAN RESOURCES • Total $1,038.14 AT &T CONSOLIDATED PHONE $23.93 CITY GARAGE CITY GARAGE OH LABOR DEC2 $136.67 OLT SOLUTIONS, LLC AUTOCAD ANNUAL $4,309.73 FLEETCOR TECHNOLOGIES SUBSCRIPTI $437.95 JPMORGAN CHASE BANK COX - INTERNET $1,582.12 JPMORGAN CHASE BANK COX - SERVICE $115.22 VERIZON WIRELESS WIRELESS CONNECTION $200.05 GEN INFORMATION TECH -Total WIRELESS CONNECTION $6,367.72 CITY GARAGE CITY GARAGE OH LABOR DEC2 $246.50 FLEETCOR TECHNOLOGIES FUEL EXP DEC21 $34.37 JPMORGAN CHASE BANK MEETING EXPENSE 115 $13.50 JPMORGAN CHASE BANK MEETING EXPENSE 117 $37.13 JPMORGAN CHASE BANK OFFICE DEPOT - CALCULAT $91.39 GEN MANAGERIAL -Total $422.89 YOUTH SERVICES OF TULSA YOUTH COURT $4,125.00 GEN MUNICIPAL COURT -Total $4,125.00 BLUE ENERGY FUELS LLC CNG FUEL PORCH DEC 21 $89.80 CITY GARAGE CITY GARAGE OH LABOR DEC2 $1,534.08 CITY GARAGE CITY GARAGE PARTS DEC 21 $10.00 FLEETCOR TECHNOLOGIES FUEL EXP DEC21 $437.95 JPMORGAN CHASE BANK PIKEPASS -FEES $2.45 ONEOK INC OKLAHOMA NATURAL GAS NATURAL GAS USAGE $139.60 VERDIGRIS VALLEY ELECTRIC COOP PARKS ELECTRIC $57.33 VERIZON WIRELESS WIRELESS CONNECTION $40.01 GEN PARKS -Total $2,311.22 BILLYBASORE NOVEMBER DIRT $238.34 BLUE ENERGY FUELS LLC CNG FUEL PURCH DEC 21 $308.95 CITY GARAGE CITY GARAGE OH LABOR DEC2 $4,295.83 CITY GARAGE CITY GARAGE PARTS DEC 21 $2,347.47 FLEETCOR TECHNOLOGIES FUEL EXP DEC21 $1,257.90 JPMORGAN CHASE BANK GELLCO -BOOTS $125.99 JPMORGAN CHASE BANK PIKEPASS -FEES $4.65 UNIFIRST HOLDINGS LP UNIFORM SERVICES $113.06 VERIZON WIRELESS WIRELESS CONNECTION $80.02 GEN STORMWATER -Total $8,772.21 BLUE ENERGY FUELS LLC CNG FUEL PURCH DEC 21 $65.32 CITY GARAGE CITY GARAGE OH LABOR DEC2 $641.75 CITY GARAGE CITY GARAGE PARTS DEC 21 $42.47 M Fund 01 GENERAL 20 Claims List - 1/18/2022 Vendor Name Payable Description Payment Amount JPMORGAN CHASE BANK BEWLEY -BAGS $31.31 JPMORGAN CHASE BANK SAMS- SUPPLIES $188.30 SCHINDLER ELEVATOR INC ANNUAL SVC CONTRACT 22 $2,761.26 UNIFIRST HOLDINGS LP UNIFORM RENTAL $23.60 VERIZON WIRELESS WIRELESS CONNECTION $40.01 GEN SUPPORT SERVICES -Total $3,794.02 AEP IPSO STREET LIGHTS $9.00 TREASURER PETTY CASH CC FORFEIT- WOODWARD ($50.00) - TREASURER PETTY CASH CC REFUND - BENNETT $50.00 TREASURER PETTY CASH CC REFUND - BILYEU $50.00 TREASURER PETTY CASH CC REFUND - BLANKENSHIP $50.00 TREASURER PETTY CASH CC REFUND - BROADDRICK $100.00 TREASURER PETTY CASH CC REFUND -BROWN $100.00 TREASURER PETTY CASH CC REFUND - ERDMANN $100.00 TREASURER PETTY CASH CC REFUND -EVANS $50.00 TREASURER PETTY CASH CC REFUND- GARRISON $50.00 TREASURER PETTY CASH CC REFUND- HOLTZHAUSEN $50.00 TREASURER PETTY CASH CC REFUND - JOHNSON $100.00 TREASURER PETTY CASH CC REFUND - POPLIN $50.00 TREASURER PETTY CASH CC REFUND - WOODWARD $50.00 TREASURER PETTY CASH CC REFUND -XIONG - $100.00 TREASURER PETTY CASH OC REFUND - ACOSTA $100.00 TREASURER PETTY CASH REDBUD REF - PIRTLE $200.00 TREASURER PETTY CASH SPEC EVENT REF - KENDAL $200.00 TREASURER PETTY CASH USER FEE REF - BENNETT $75.00 GENERAL -Total $1,434.00 GENERAL -Total $72,087.08 AMBULANCE SERVICE CITY GARAGE CITY GARAGE OH LABOR DEC2 $1,254.08 CITY GARAGE CITY GARAGE PARTS DEC 21 $5.00 FLEETCOR TECHNOLOGIES FUEL EXP DEC21 $2,370.42 JPMORGAN CHASE BANK BOUNDTREE- SUPPLIES $2,547.41 JPMORGAN CHASE BANK FULLERTON -02 SUPPLY $80.00 JPMORGAN CHASE BANK HENRY SCHEIN- SUPPLIES $1,475.12 JPMORGAN CHASE BANK LIFE ASSIST - SUPPLIES $5,331.15 JPMORGAN CHASE BANK NAT'L REGIS -PMD RECER $50.00 JPMORGAN CHASE BANK NAT'L REGIS - RECERT $150.00 JPMORGAN CHASE BANK NATL REGIS -RENEW FEE $25.00 JPMORGAN CHASE BANK S ANESTHESIA - SUPPLIES $645.74 JPMORGAN CHASE BANK TTC -BOOKS $1,056.00 JPMORGAN CHASE BANK ZOLL- SUPPLIES $1,298.88 TURN -KEY MOBILE, INC NEW TOUGHBOOKS $19,420.00 !1 Claims List - 1/18/2022 Fund Vendor Name Payable Description Payment Amount 20 AMBULANCE SERVICE VERIZON WIRELESS WIRELESS CONNECTION $40.01 AMBULANCE -Total $35,748.81 AMERICAN MUNICIPAL SERVICES LTD COLLECTION SERVICES $580.00 CIGNA AMBULANCE REFUND $638.12 FORREST DANIELS III AMBULANCE REFUND $1,360.00 TREASURER PETTY CASH SR AMB DISC - JACKSON $20.40 AMBULANCE SERVICE •Total $2,598.52 AMBULANCE SERVICE -Total $38,347.33 21 'E -911 - AT &T CONSOLIDATED PHONE $421.63 AT &T MNTHLY SVC CHG T1 CIRCUIT $1,031.85 BROOKE WATSON TUITION REIMBURSEMENT $1,200.00 COX COMMUNICATIONS MNTHLY SVC FEE TI CIRCUIT $229.00 JPMORGAN CHASE BANK SAMS- SUPPLIES $89.94 MOTOROLA SOLUTIONS INC MO PYMT ASTRO SYSTEM - JA $2,714.75 VERIZON WIRELESS WIRELESS CONNECTION $40.01 E911 COMMUNICATIONS -Total $5,727.18 E -911 -Total $5,727,18 25 HOTEL TAX JPMORGAN CHASE BANK MEETING EXPENSE 1/5 $110.00 JPMORGAN CHASE BANK WEIHAAS -WEB FEE $600.00 TREASURER PETTY CASH MILEAGE REIMB -FEARY $293.92 HOTEL TAX ECON DEV -Total $1,003.92 CITY GARAGE CITY GARAGE OH LABOR DEC2 $69.92 FLEETCOR TECHNOLOGIES FUEL EXP DEC21 $21.54 JPMORGAN CHASE BANK AMAZON -TONER $332.85 STRONG NEIGHBORHOODS •Total $424.31 HOTELTAX -Total $1,428.23 27 STORMWATER MANAGEMENT JPMORGAN CHASE BANK WASTE MGMT -SVC $240.28 MESHEK & ASSOCIATES, P.L.C. ENGINEERING SERVICES - $2,502.50 MESHEK& ASSOCIATES, P.L.C. ENGINEERING SERVICES - BL $15,201.25 UNIFIRST HOLDINGS LP UNIFORM SERVICES $11.98 VERIZON WIRELESS WIRELESS CONNECTION $40.01 STORMWATER-STORMWATER -Total $17,996.02 STORMWATER MANAGEMENT -Total $17,996.02 31 AMBULANCE CAPITAL TREASURER PETTY CASH SRAMB DISC - JACKSON $3.60 AMBULANCE CAPITAL -Total $3.60 AMBULANCE CAPITAL -Total $3.60 34 VISION TAX MESHEK & ASSOCIATES, P.L.C. ROW ACQUISITION SERVICES $3,500.00 TULSA COUNTY CLERK - TULSA COUNTY FILINGS $24.00 96TH FROM 119TH TO 129TH -Total $3,524.00 F". Claims List - 1/18/2022 Fund Vendor Name Payable Description Payment Amount 34 VISION TAX -Total $3,524.00 37 SALES TAX FIRE AT &T CONSOLIDATED PHONE $14.07 CITY GARAGE CITY GARAGE OH LABOR DEC2 $4,532.75 CITY GARAGE CITY GARAGE PARTS DEC 21 $2,116.47 DENTON POLSON TUITION REIMBURSEMENT $2,367.75 EAST COAST RESCUE SOLUTIONS FORCIBLE ENTRY DOOR $10,445.00 FIREHOUSE FABRICATORS INC WINDOW TRAINING PROP $3,430.00 FIRST RESPONDER SUPPORT SERVICES BEHAVIORAL HEALTH SERVICE $9,055.11 FLEETCOR TECHNOLOGIES FUEL EXP DEC21 $3,667.58 INTERIOR LANDSCAPES ST3 DINING CHAIRS $1,578.00 JPMORGAN CHASE BANK A &B- UNIFORMS $3,697.62 JPMORGAN CHASE BANK ACADEMY - STAKES $19.98 JPMORGAN CHASE BANK ADVANCE AUTO -OIL DRY $49.55 JPMORGAN CHASE BANK AMAZON -CRATE $26.99 JPMORGAN CHASE BANK AMAZON -TOOLS $15.88 JPMORGAN CHASE BANK ATWOODS -FLUID $4.99 JPMORGAN CHASE BANK ATWOODS -PARTS $106.39 JPMORGAN CHASE BANK BEST BUYT - BATTERY $119.98 JPMORGAN CHASE BANK CAMFIL - FILTERS $215.69 JPMORGAN CHASE BANK CHEWY -K9 FOOD $49.86 - JPMORGAN CHASE BANK CORNERSTONE -SVC $8.00 JPMORGAN CHASE BANK FIRE INSTR- TRAINING $248.00 JPMORGAN CHASE BANK FROGGYS - TRAINING $1,049.99 JPMORGAN CHASE BANK HOME DEPOT - SUPPLIES $393.71 JPMORGAN CHASE BANK HOME DEPOT -TOOLS $21.94 JPMORGAN CHASE BANK IAFC -MEMB FEE $97.50 JPMORGAN CHASE BANK INTERSTATE - BATTERIES $396.00 JPMORGAN CHASE BANK LOCKE- SUPPLIES $32.43 JPMORGAN CHASE BANK LOWES -PARTS $4.24 JPMORGAN CHASE BANK LOWES- SUPPLIES $48.92 JPMORGAN CHASE BANK MENS WEARHOUSE - UNIFOR $161.64 JPMORGAN CHASE BANK NSC -PPE $2,211.30 JPMORGAN CHASE BANK OFFICE DEPOT- SUPPLIES $53.04 JPMORGAN CHASE BANK OKSTATE FIRE -DUES $3,640.00 JPMORGAN CHASE BANK OREILLY- HEADLIGHT $8.91 JPMORGAN CHASE BANK OREILLY- SUPPLIES $63.95 JPMORGAN CHASE BANK OVERHEAD DOOR -DOOR $817.50 JPMORGAN CHASE BANK PIKEPASS -FEES $40.03 JPMORGAN CHASE BANK SAMS- SUPPLIES $17.84 JPMORGAN CHASE BANK SMARTSIGN -DRY TAGS $53.06 JPMORGAN CHASE BANK SUMNERONE- COPIER SVC $160.27 ". Claims List - 1/18/2022 Fund Vendor Name Payable Description Payment Amount 37 SALES TAX FIRE JPMORGAN CHASE BANK UPS - POSTAGE $273.73 JPMORGAN CHASE BANK WASH CO RWD -WATER $101.93 ONEOK INC OKLAHOMA NATURAL GAS NATURAL GAS USAGE $1,276.21 STANARD & ASSOCIATES, INC TESTING FOR NEW APPLICANT $197.50 VERIZON WIRELESS WIRELESS CONNECTION $1,565.70 SALES TAX FUND -FIRE - Total $54,457.00 SALES TAX FIRE -Total $54,457.00 38 SALES TAX POLICE AT &T CONSOLIDATED PHONE $14.07 CITY GARAGE CITY GARAGE OH LABOR DEC2 $10,065.75 CITY GARAGE CITY GARAGE PARTS DEC 21 $5,245.74 FIRST RESPONDER SUPPORT SERVICES BEHAVIORAL HEALTH SERVICE $10,564.29 FLEETCOR TECHNOLOGIES FUEL EXP DEC21 $11,688.43 JPMORGAN CHASE BANK ANCHOR STONE - SUPPLIES $239.22 JPMORGAN CHASE BANK OFFICE DEPOT- SUPPLIES $19.32 JPMORGAN CHASE BANK SAMS - SUPPLIES $89.94 ONEOK INC OKLAHOMA NATURAL GAS NATURAL GAS USAGE $1,204.87 SCHINDLER ELEVATOR INC ANNUAL SVC CONTRACT 22 $2,761.26 TREASURER PETTY CASH VEHICLE TAG $322.00 VERIZON WIRELESS WIRELESS CONNECTION $1,268.24 SALES TAX FUND - POLICE -Total $43,483.13 SALES TAX POLICE - Total - $43,483.13 39 SALES TAX STREETS AEP /PSO STREET LIGHTS $7,156.21 BILLY BASORE NOVEMBER DIRT $238.33 - BLUE ENERGY FUELS LLC CNG FUEL PURCH DEC 21 $176.31 CINTAS CORPORATION FIRST AID SUPPLIES $29.17 CITY GARAGE CITY GARAGE OH LABOR DEC2 $3,490.00 CITY GARAGE CITY GARAGE PARTS DEC 21 $1,832.81 FLEETCOR TECHNOLOGIES FUEL EXP DEC21 $1,124.62 JPMORGAN CHASE BANK ATWOODS -BOOTS $166.98 JPMORGAN CHASE BANK ATWOODS - UNIFORM $39.99 JPMORGAN CHASE BANK BROWNCO -MAT $145.00 JPMORGAN CHASE BANK BUMP2BUMP -WIRE $44.99 JPMORGAN CHASE BANK CAVENDERS- REFUND ($110.49) JPMORGAN CHASE BANK GELLCO -BOOTS $152.99 JPMORGAN CHASE BANK GRAINGER -PUMP $445.96 JPMORGAN CHASE BANK HARBOR FREIGHT -TOOLS $239.98 JPMORGAN CHASE BANK HARD HAT SAFETY -GLOVE $252.00 JPMORGAN CHASE BANK LOWES -FORM BOARDS $381.08 JPMORGAN CHASE BANK LOWES -FORMS $21.52 JPMORGAN CHASE BANK LOWES- LUMBER $85.79 JPMORGAN CHASE BANK LOWES -PARTS $75.49 7 Claims List - 1/18/2022 Fund Vendor Name Payable Description Payment Amount 39 SALES TAX STREETS JPMORGAN CHASE BANK LOWES- SUPPLIES $67.38 JPMORGAN CHASE BANK LOWES -TOOLS $76.56 JPMORGAN CHASE BANK PIKEPASS -FEES $13.90 JPMORGAN CHASE BANK QUIKSERVICE- MATERIALS $153.52 JPMORGAN CHASE BANK RED WING -BOOTS $170.00 JPMORGAN CHASE BANK TRACTOR SPLY- UNIFORM $67.99 JPMORGAN CHASE BANK WHITE STAR -SAW BELT $51.34 UNIFIRST HOLDINGS LP UNIFORM SERVICES $218.70 VERDIGRIS VALLEY ELECTRIC COOP 1161129 TRAFFIC SIGNA $87.21 VERDIGRIS VALLEY ELECTRIC COOP CHAMPION STREET LIGHT $82.30 VERDIGRIS VALLEY ELECTRIC COOP SECURITY LIGHT $6.87 VERIZON WIRELESS WIRELESS CONNECTION $80.02 SALES TAX FUND-STREETS -Total $17,064.54 SALES TAX STREETS - Total $17,064.54 40 CAPITAL IMPROVEMENTS DOERNER, SAUNDERS, DANIEL & LEGAL FEES FOR 96 AND 106 $3,730.75 Cl - GARN WID 96TH -106TH -Total $3,730.75 JPMORGAN CHASE BANK NSC -TOOLS $5,497.76 CIP FIRE DEPT VEHICLES -Total $5,497.76 CEI INCORPORATED CENTRAL PARK DRAINAGE IMP $34,843.00 CIP LAKERIDGE /CNTL PARK -Total $34,843.00 JIM GLOVER CDJR LLC POLICE VEHICLES $103,328.00 CIP POLICE VEHICLES -Total $103,328.00 PARAGON CONTRACTORS, LLC 137 E AVE EXTENSION PROJE $54,210.99 SVC ROAD 116TH & 137TH -Total $54,210.99 CAPITAL IMPROVEMENTS -Total $201,610.50 70 CITY GARAGE CITY GARAGE CITY GARAGE PARTS DEC 21 $113.87 FLEETCOR TECHNOLOGIES FUEL EXP DEC21 $34.70 JPMORGAN CHASE BANK A &N -PARTS $1,056.58 JPMORGAN CHASE BANK AMAZON -TOOLS $18.99 JPMORGAN CHASE BANK CORNERSTONE - SUPPLIES $4.92 JPMORGAN CHASE BANK GOODYEAR -PARTS $5,305.44 JPMORGAN CHASE BANK HESSELBEIN -TIRES $2,004.20 JPMORGAN CHASE BANK JIM GLOVER -PARTS $616.25 JPMORGAN CHASE BANK JIM NORTON -PARTS $2,982.46 JPMORGAN CHASE BANK MATTHEWS FORD - REPAIRS $918.94 JPMORGAN CHASE BANK MYERS -PARTS $309.02 JPMORGAN CHASE BANK UNITED FORD -PARTS $339.76 JPMORGAN CHASE BANK WASTE MGMT -SVC $240.28 ONEOK INC OKLAHOMA NATURAL GAS NATURAL GAS USAGE $636.45 UNIFIRST HOLDINGS LP UNIFORM RENTAL $69.72 0 Claims List - 1/18/2022 Fund Vendor Name Payable Description Payment Amount 70 CITY GARAGE CITY GARAGE - Total $14,651.58 CITY GARAGE • Total $14,651.58 76 WORKERS' COMP SELF -INS CITY OF OWASSO IMPREST ACCOUNT OK TAX COMMISSION SPECIAL TAX UNIT UNITED SAFETY & CLAIMS INC WORKERS' COMP SELF -INS •Total WORKERS COMP CLAIMS MITF ASSESSMENTS 21 -22 UNITED SAFETY CLAIMS $3,748.46 $2,043.88 $1,658.33 $7,450.67 WORKERS' COMP SELF -INS -Total $7,450.67 77 GENERAL LIABILITY - PROPERT JPMORGAN CHASE BANK GEN LIAR -PROP SELF INS -Total JIM NORTON -PARTS $730.00 $730.00 GENERAL LIABILITY - PROPERT - Total $730.00 City Grand Total $478,560.86 TO: The Owasso City Council FROM: Bill Bush, Mayor SUBJECT: Board of Adjustment Vacancy - Citizen Appointment DATE: January 14, 2022 BACKGROUND: Pursuant to authority contained in Article 2, Section 2 -4, subsection (e) of the Charter of the Citv of Owasso, the City Council has established ordinances that provide, generally, for the Mayor to appoint members to various boards, commissions, trusts, and committees; such appointments are subject to confirmation by the City Council. Additionally, the City Council has established the same procedure, by precedent, for those appointments not specifically addressed by ordinance. A vacancy has been declared on the Board of Adjustment following the resignation of Lonnie Green. It is, therefore, the purpose of this memorandum to recommend for City Council confirmation the appointment of Kyle Davis to fill the remainder of the vacated term to expire on June 30, 2022. TO: The Honorable Mayor and City Council FROM: Karl Fritschen AICP, RLA Planning Manager SUBJECT: Ordinance 1189, OPUD 22 -01 /OZ 22 -02- Cosa Del Mar DATE: January 14, 2022 BACKGROUND: The Community Development Department received a Planned Unit Development (PUD) application (OPUD 22 -01) for Casa Del Mar, a proposed mixed -use development located at the southeast corner of the intersection of East 86th Street North and North Memorial Road. The property was annexed into the City Limits in 2017, under Ordinance 1115. A rezoning request, OZ 22 -02, which proposes an underlying zoning pattern of Commercial Shopping (CS) and Residential Multi - Family (RM), accompanies this PUD request. SUBJECT PROPERTY /PROJECT DATA: Property Size 16.86 acres +/- Current Zoning Agriculture (AG) Proposed Zoning Commercial Shopping (CS), Residential Multi - Family (RM) Present Use Vacant Land Use Master Plan Commercial/ Transitional Within PUD? No Within Overlay District? No Water Provider Washington County Rural #3 Paybacks (assessed at fiinal plat) Ranch Creek Interceptor ($610.33 per acre) Storm Siren Fee 50.00 er acre CONCEPT OF A PUD: A PUD is a development concept that allows for greater creativity and flexibility than typically allowed under traditional zoning and planning practices. For example, PUDs often allow developers to place different zonings and land uses in close proximity to each other. Developers may also have more flexibility in certain aspects of development, such as building setback requirements and building height limitations, which can be more restrictive in standard zoning districts. However, a PUD should not be considered as a tool to circumvent the City's Zoning Code and Subdivision Regulations. All aspects of the PUD application are subject to public comment as well as consideration and approval from the Community Development Department, the Owasso Technical Advisory Committee, the Owasso Planning Commission, and the Owasso City Council. PUD applications presented to the Planning Commission and City Council are for approval of the uses and the overall conceptual development plan as it relates to the context of the surrounding area. OPUD 22 -01 / OZ 22 -02 Page 2 SURROUNDING LAND USE: Direction Zoning Use Land Use Jurisdiction Plan North Agriculture (AG) Vacant /Undeveloped Commercial/ Tulsa Transitional Count South Agriculture (AG) with Horticulture/ Residential/ City of OPUD 17 -03 Overlay Attached Housing /Retail Transitional Owasso East Agriculture (AG) Vacant /Undeveloped /Single Transitional Tulsa Family Home Count West Agriculture (AG) Vacant /Undeveloped /Single Commercial Tulsa Family Home I County GROWASSO 2030 LAND USE MASTER PLAN CONSISTENCY: The GrOwasso 2030 Land Use Master Plan is a document that acts as a moderately flexible tool for evaluating development proposals. The GrOwasso 2030 Land Use Master Plan identifies the property for commercial and transitional land uses, making the proposed development consistent with the land uses identified for this location. ANALYSIS: • The zoning request proposes Residential Multi - Family (RM) zoning for the southern 13.95 acres (Development Area 'B') and Commercial Shopping (CS) zoning for the remaining 3.434 acres (Development Area 'A'). The subject property is currently unplatted. • The conceptual development plan submitted for OPUD 22 -01 identifies the property for commercial, office and residential multi - family uses. • The multi - family development area is proposed to be built in 2 phases, with the eastern portion of Development Area 'B' being phase 1 and contain 120 dwelling units. Phase 2 will be completed after phase 1 in Development Area 'B' is built and will contain an additional 120 units, making a total of 240 dwelling units for the project. • The remainder of the property, Development Area 'A,' where the commercial and office uses are identified will be developed a later time. • Both Development Areas will be limited to one (1) curb cut on East 86th Street North and one (1) curb cut on North Memorial Road each. These access points will be set back from the intersection at a distance that will meet the driveway spacing requirements in the Owasso Zoning Code. • A decorative fence is proposed around the north and western boundary of Development Area 'B' and an opaque privacy fence along the boundary of Development Area 'A'. • The conceptual Landscape Plan shows a buffer yard between Development Area 'A' and Development Area 'B,' as well as exterior plantings along the entirety of the subject property. OPUD 22 -01/ OZ 22 -02 Page 2 • All landscaping and off - street parking will be required to meet the requirements identified in the Owasso Zoning Code. • The multi - family area will contain several amenity features, including a swimming pool, main clubhouse, tot lots, and other area activity areas. • The buildings are proposed to be 3 stories (36 feet) from the ground to the eve height and be constructed with cement board siding, brick, and asphaltic shingles for the roof. Decorative shutters will be placed at the windows. The commercial area will also be comprised of masonry materials. • The City of Owasso will provide police, fire, ambulance, sanitary sewer services to the subject property. Water service would be provided by Washington County Rural #3. • Pending the rezoning of the property, the applicant would need to submit a final plat. PLANNING COMMISSION: The Owasso Planning Commission voted 5 -0 to recommend approval of OPUD 22 -01 /OZ 22 -02 - Casa Del Mar at their regular meeting on January 10, 2022. RECOMMENDATION: Staff recommends adoption of Ordinance 1189. ATTACHMENTS: Ordinance 1189 Zoning Map GrOwasso 2030 Land Use Master Plan Map PUD Document CITY OF OWASSO, OKLAHOMA ORDINANCE 1189 AN ORDINANCE APPROVING A PLANNED UNIT DEVELOPMENT AS REFERENCED IN APPLICATION OPUD 22 -01 AND REZONING APPLICATION OZ 22 -02 AND REPEALING ALL ORDINANCES OR PARTS OF ORDINANCES IN CONFLICT WHEREAS, public hearings have been held regarding the request for rezoning and planned unit development of the property described below; and, WHEREAS, the Owasso City Council has considered the recommendation of the Owasso Planning Commission and all statements for or against the requested planned unit development application OPUD 22 -01, and rezoning application OZ 22 -02. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF OWASSO, OKLAHOMA, THAT TO WIT: SECTION 1. A tract of land contained within the Northwest Quarter (NW /4) of Section Twenty (25), Township Twenty -one (21) North, Range Fourteen (13) East of the Indian Base and Meridian, Tulsa County, State of Oklahoma, according to the U.S. Government Survey thereof being more particularly described as follows: COMMENCING FROM THE NORTHWEST CORNER OF THE NORTHWEST QUARTER OF SECTION 25, TOWNSHIP 21 NORTH, RANGE 13 EAST; THENCE SOUTH 01 027'30" EAST FOR A DISTANCE OF 60.00 FEET; THENCE NORTH 88°41'38" EAST FOR A DISTANCE OF 50.00 FEET TO THE POINT OF BEGINNING; THENCE NORTH 88°41'38" EAST FOR A DISTANCE OF 634.82 FEET; THENCE SOUTH 01°27'30" EAST SOUTH FOR A DISTANCE OF 239.28 FEET; THENCE SOUTH 88°41'38 WEST FOR A DISTANCE OF 634.82 FEET; THENCE NORTH 01°27'30" WEST FOR A DISTANCE OF 239.28 FEET TO THE POINT OF BEGINNING, SAID TRACT OF LAND CONTAINING 151,899.19 SQUARE FEET (3.49 ACRES) Said tract contains 151,899.19 square feet or 3.49 acres, is hereby rezoned from Agriculture (AG) to Commercial Shopping (CS) with a PUD Overlay. is M A tract of land contained within the Northwest Quarter (NW /4) of Section Twenty (25), Township Twenty -one (2 1) North, Range Fourteen (13) East of the Indian Base and Meridian, Tulsa County, State of Oklahoma, according to the U.S. Government Survey thereof being more particularly described as follows: COMMENCING FROM THE NORTHWEST CORNER OF THE NORTHWEST QUARTER OF SECTION 25, TOWNSHIP 21 NORTH, RANGE 13 EAST; THENCE SOUTH 01 027'30" EAST FOR A DISTANCE OF 60.00 FEET; THENCE NORTH 88°41'38" EAST FOR A DISTANCE OF 684.82 FEET TO THE POINT OF BEGINNING; THENCE NORTH 88°41'38" EAST FOR A DISTANCE OF 575.93 FEET; THENCE SOUTH 01°34'50" EAST FOR A DISTANCE OF 600.00 FEET; THENCE SOUTH 88°41'38" WEST FOR A DISTANCE OF 1212.03 FEET; THENCE NORTH 01°27'30" WEST FOR A DISTANCE OF 360.72 FEET; THENCE NORTH 88°41'38" EAST FOR A DISTANCE OF 634.82 FEET; THENCE NORTH 01°27'30" WEST FOR A DISTANCE OF 239.28 FEET TO THE POINT OF BEGINNING, SAID TRACT OF LAND CONTAINING 574,929.52 SQUARE FEET (13.20 ACRES) Ordinance 1189 Page 1 of 3 Said tract contains 731,272 square feet or 16.7877 acres, is hereby rezoned from Agriculture (AG) to Residential Multi - Family (RM) with a PUD Overlay. The Site Development Plan and Statement of Intent shall be followed for any development of the described property. SECTION 2. All ordinances or parts of ordinances, in conflict with this ordinance are hereby repealed to the extent of the conflict only. SECTION 3. If any part or parts of this ordinance are deemed unconstitutional, invalid or ineffective, the remaining portion shall not be affected.but shall remain in full.force and effect. SECTION 4. The provisions of this ordinance shall become effective thirty (30) days from the date of final passage as provided by state law. SECTION 5. There shall be filed in the office of the County Clerk of Tulsa County, Oklahoma, a true and correct copy of this Ordinance and correct map. PASSED AND ADOPTED this 18th day of January, 2022. Bill Bush, Mayor ATTEST: Juliann M. Stevens, City Clerk (SEAL) APPROVED AS TO FORM: Julie Lombardi, City Attorney Ordinance 1189 Page 2 of 3 Surrounding Zoning OZ 22 -02/ OPUD 22 -01 South East Corner of East 86th Street and North Memorial Drive Owasso, Oklahoma OPUD 22 -01 OZ 22 -02 Prepared for: Atlas Property Management Prepared by: wallace design collective wallace design eelleotl". pc Structural - dvil - landscape survey 123 north morlln Iutl ier kingji. Uoulevord W ISO, oklahoino 71103 9185845558 800.364 SS58 WOII00000510n December 1, 2021 Revised January 4, 2022 Casa De(Mar OPUD 22 -01 I. Development II. Development Standards 4 -5 III. Access and Circu IV. Fencing V. Landscape and B VI. Amenities G VII. Utilities and Drainage 6 VIII. Site Plan Review IX. Platting X. Schedule of Developme XI. Legal Description 7 Exhibit "A" — Boundary and Development Area Plan Exhibit "B" - Conceptual Site Plan Exhibit "C" — Access & Circulation Plan Exhibit "D" — Landscape and Screening Plan Exhibit "E" — Existing & Proposed Utilities & Topography Exhibit "F" —Area Zoning Map Exhibit "G "— Aerial Photography Exhibit "H" — Architectural Character 2 Casa DeCMar OPUD 22 -01 Development Concept Casa Del Mar is a proposed 16.629 + /- acre development on the southeast corner of the intersection of North Memorial Drive and East 861h Street North. The property is abutted to the south by the recently developed New Leaf property. Directly adjacent to the property on the east is a private driveway that serves New Leaf. Existing single - family homes lie beyond the driveway. The subject property is currently zoned Agriculture (AG). Submitted concurrently with this PUD application is a zoning request to re -zone property to Commercial Shopping(CS) and Residential Multi Family (RM). The site has moderate slopes draining to the east. There is no FEMA 100 -year floodplain on the site. The majority of the site will be developed into a multifamily community. This portion of the development will likely be developed in two phases. The hard corner of the property will be reserved for commercial and or office development. As outlined in the subsequent development standards, the Casa Del Mar will have substantial amenities, buffering and landscaping. This proposal is consistent with the Land Use Master Plan and is compatible with the surrounding development providing the community of Owasso with a quality development. 3 Land Area (Net): Permitted Uses: Casa DeCMar OPUD 22 -01 II. Development Standards Development Area 'A' - Commercial & Office 3.49 Acres Maximum Commercial /Office Floor Area: Minimum Lot Frontage: Minimum Lot Size: Minimum Lot Frontage: Minimum Building Setbacks: From the ROW of E. 86th Street North: From North Memorial Drive: From internal PUD boundaries Maximum Building Height: Other Bulk and Ara Requirements Mutual Access Easement Signage Landscape Buffer 4 151,899 SF As Permitted within the CS Zoning District As Permitted within the CS Zoning District As Permitted within the CS Zoning District As Permitted within the CS Zoning District As Permitted within the CS Zoning District 25 feet 25 feet 20 feet 36 feet As Permitted within the CS Zoning District All tracts within Development Area 'A' with have pedestrian and Vehicular Cross Access One (1) 8' monument sign per parcel, with a total limit of three (3) allowed signs. One large tree per 20' lineal feet of boundary adjacent to Area B. A Unified Sign Plan will be required for any multi - tenant signs. Screen fence is required at the development area boundary adjacent to Development Area B. Land Area (Net): Permitted Uses: Casa DeCJgar OPUD 22 -01 Development Area'B' - Multifamily 13.20 Acres Minimum Building Setbacks: From the ROW of E. 86' Street North: From North Memorial Drive: From internal PUD boundaries From South and East Boundary of PUD Maximum Building Height: Density: Parking: Other Bulk and Ara Requirements Signage Landscape Buffer 5 574,930 SF As Permitted within the RM Zoning District 35 feet 35 feet 20 feet 20 feet 36 feet as measured to the top plate (a building height above 36 feet may be approved with a Specific Use Permit) 24 Units per Acre per City of Owasso Zoning Code As Permitted within the RM Zoning District Two monument signs will be allowed for the apartments, max 8' tall each One large tree per 50 lineal feet and wood fence with metal post on the East & South Boundary of PUD Casa DeCNar OPUD 22 -01 III. Access and Circulation Both the commercial /office development area and the multifamily development area will have straight access from both North Memorial Drive and East 86th Street North. A public sidewalk is proposed adjacent to East 86th Street North and North Memorial Drive. All sidewalks and roadways will be built to the City of Owasso standards. A pedestrian and vehicular mutual access easement will be provided within Development Area 'A'. There will be a maximum of 2 access points on each street, one per each development area. The multifamily development will have sidewalks and walking trails. The internal sidewalks of the development with will connect into the public sidewalk system on the arterial streets. IV. Fencing The south and east boundaries will have a wood fence with metal post facing the development. An ornamental fence will be provided on the north and west boundaries of the multifamily development. A fence may be provided between the two development areas. The multifamily development will be gated. V. Landscape and Buffering In addition to the wood fence on the south and west side of Casa Del Mar, additional landscaping will be provided. One tree per 50 linear feet of boundary will be installed. VI. Amenities In addition to the sidewalks and walking trails. A clubhouse with a swimming pool, a playground and activity area will be provided within the first phase of the multifamily development to serve both phases. A large second activity area will be provided in phase two. Otheramenities, possibly bike racks will be included. VII. Utilities and Drainage Utilities are readily available to Casa Del Mar. Water lines are located on all four sides of the property. It is likely that a water main loop through the development will be necessary to provide service and fire protection. There is an existing sanitary sewer line on the adjacent New Leaf property. A sanitary sewer extension will be required to serve both the residential and commercial /office property. A storm sewer system will collect the runoff. A proposed stormwater detention pond will control the rate that stormwater will leave the site and will serve both development areas. All utility design will be reviewed and approved by the City of Owasso. Casa DeC -Mar VIII. Site Plan Review For the purpose of the site plan review requirements for each phase and development area a detail shall be reviewed and approved by City of Owasso staff prior to the issuance of a building permit. IX. Platting Casa Del Mar shall be platted prior to the issuance of a building permit. However, in order to maintain flexibility in the development, the plat may include the entire property or be platted in phases of the development. X. Schedule of Development Construction of the development will begin after final approval of the Planned Unit Development, platting and approval of construction documents. XI. Legal Description A tract of land located in the Northwest Quarter of the Northwest Quarter (NW /4 NW /4) of Section Twenty -five (25) in Township Twenty -one (21) North and Range Thirteen (13) East of the Indian Base and Meridian (I.B. &M.), according to the U.S. Government Survey, thereof, Tulsa County, State of Oklahoma; being more particularly described as follows: COMMENCING at the NW corner of Sec. 25, T -21 -N, R -13 -E, I.B. &M.; THENCE S 01°27'30 "E along the west line of said Sec. 25 a distance of 60.00 feet; THENCE N 88°41'38 "E parallel with the north line of said Sec. 25 a distance of 50.00 feet to the POINT OF BEGINNING being on the present right -of -way of East 86th Street North; THENCE N 88°41'38 "E along said present right - of -way of East 86th Street North a distance of 1210.75 feet to the boundary of THE VILLAGES AT A NEW LEAF, accordingto the recorded Plat No. 6924; THENCE S 01 034'50 "E along said boundary of THE VILLAGES AT A NEW LEAF a distance of 600.00 feet; THENCE S 88°41'38 "W along said boundary of THE VILLAGES ATA NEW LEAF a distance of 1212.03 feet to the present right -of -way of North Memorial Drive; THENCE N 01°27'30 "W along said present right -of -way of North Memorial Drive a distance of 600.00 feet to the Point of Beginning, and containing 16.686 acres, more or less. Basis of bearing is the Oklahoma State Plane Coordinate System. TO: The Honorable Mayor and City Council FROM: Karl Fritschen, AICP, RLA Planning Manager SUBJECT: Partial Plat Vacation — Presley Hollow Lots 20, 21, 22 and 23, Block 1 DATE: January 14, 2022 BACKGROUND: The Community Development Department received an application for a partial plat vacation final plat for Presley Hollow, Lots twenty (20) through twenty -three (23) of Block one (1). The subject properties are located at 7906, 7908, 7910, and 7912 North 145th East Court. The purpose of the partial plat vacation is to prepare the property for a new plat and to correct a survey error which caused house foundations to encroach into utility easements and side lot lines. SURROUNDING ZONING: Direction Zoning Use Land Use Plan Jurisdiction North Residential Single Residential Residential City of Owasso Within PUD? Family RS -3 /PUD 16 -04 Within Overlay District? No Water Provider South Residential Single Residential Residential City of Owasso Family (RS-3/PUD 16 -04 East Residential Single Residential Residential City of Owasso Family RS -3 /PUD 16 -04 West Residential Single Family (RS-3/PUD 16 -04 Residential Residential City of Owasso SUBJECT PROPERTY /PROJECT DATA: Property Size 0.58 acres Current Zoning RS -3 Proposed Use Residential Lots /Blocks 4 Lots, 1 Block of a lar er 197 Lot, 12 Block plat) Number of Reserve Areas N/A Within PUD? Yes; PUD 16 -04 Within Overlay District? No Water Provider Rogers County Rural #3 Applicable Pa backs N/A Streets (public or priv ate Public ANALYSIS: • The final plat containing the subject lots was approved by the City Council in March 2021. The applicant is requesting partial vacation of a portion of the existing plat "Presley Hollow," for the purpose of preparing a new plat to correct a field survey error, which caused encroachments into utility easements. Partial Plat vacation- Presley Hollow Page 2 • Pending approval of the partial plat vacation, a new plat will be brought for consideration to accommodate the revised lots, which in turn will establish new easements and setbacks. • Oklahoma State Statutes allow for partial plat vacation, subject to the following: 1. The owner of the property consents to the partial vacation. In this case there is only one owner involved and initiated the request, allowing the vacation process to move forward. 2. The vacation of the plat or portion thereof in which the property is situated be approved by the local municipal body in which the plat is located. • State Statute further cites that "the vacation shall operate to destroy the force and effect of the recording of the plat so vacated, and to divest all public rights in the public ways, commons, and public grounds laid out as described in the plat ". • This action will not impact utilities that are already in the ground at this location. • The vacation process ensures a clean slate upon which to prepare the new plat. PLANNING COMMISSION: The Owasso Planning Commission voted 5 -0 to recommend approval of Partial Plat Vacation - Presley Hollow Lots 20, 21, 22 and 23, Block 1 at their regular meeting on January 10, 2022. RECOMMENDATION: Staff recommends approval of Partial Plat Vacation - Presley Hollow Lots 20, 21, 22 and 23, Block 1. ATTACHMENTS: Aerial Map Plat Vacation Exhibit Presley Hollow Filed Plat Subject Property Aerial Map Plat Vacation- Lots 20 -23, Block 1 Presley Hollow Presley Hollow Final Plat TO: The Honorable Mayor and City Council FROM: Karl Fritschen AICP, RLA Planning Manager SUBJECT: Final Plat - Presley Hollow Lots 20-23 Amended DATE: January 14, 2022 BACKGROUND: The City of Owasso received a final plat application for Presley Hollow Lots 20 -23 Amended. The subject property is described as Presley Hollow, Lots twenty (20) through twenty -three (23) of Block one (1) with the addresses of 7906, 7908, 7910, and 7912 North 145th East Court. This plat accompanies a plat vacation case for the same property. A survey error made when the original lots were staked in the field created encroachments into utility easements and building setbacks, thereby creating the need to vacate a portion of the original plat and prepare a new plat in its place. The subject property was rezoned to Residential Single Family (RS -3) within a planned unit development (OPUD 16 -04) under Ordinance 1083, in July 2016. SURROUNDING ZONING: Direction Zoning Use Land Use Plan Jurisdiction North RS -3 /PUD 16 -04 Residential Residential City of Owasso South RS -3 /PUD 16 -04 Residential Residential City of Owasso East RS -3 /PUD 16 -04 Residential Residential City of Owasso West RS -3 /PUD 16 -04 Residential Residential Citv of Owasso SUBJECT PROPERTY /PROJECT DATA: Property Size 0.58 acres Current Zoning RS -3 Proposed Use Residential Lots /Blocks 4 Lots, 1 Block of a larger 197 Lot, 12 Block plat) Number of Reserve Areas N/A Within PUD? Yes; PUD 16 -04 Within Overlay District? No Water Provider Rogers County Rural #3 Applicable Pa backs N/A Streets (public or rivate Public ANALYSIS: • The portion to be amended was part of the larger Presley Hollow subdivision plat which was submitted and approved by the City Council in March 2021. In order ensure clear title to the property, the subject lots need to be vacated and a new plat prepared. The companion case is a request to vacate the subject lots and ensure the new lots are legally conforming and that utility easements and lots lines are not compromised. The revised plat meets all of the subdivision requirements and provides new adjusted easements where the utilities are currently located. Final Plat- Presley Hollow Lots 20.23 Amended Page 2 • This plat will bring the property into conformity with the Owasso Subdivision Regulations, as well as engineering and site design requirements. PLANNING COMMISSION: The Owasso Planning Commission voted 5 -0 to recommend approval of the Final Plat - Presley Hollow Lots 20-23 Amended at their regular meeting on January 10, 2022. RECOMMENDATION: Staff recommends approval of the Final Plat - Presley Hollow Lots 20-23 Amended. ATTACHMENTS: Aerial Map Final Plat -The Presley Hollow Lots 20-23 Amended Presley Hollow Lots 20-23 Amended TO: The Honorable Mayor and City Council FROM: Juliann M. Stevens, City Clerk SUBJECT: Sale of Surplus Property - (Northeast comer of East 96th Street North and North Mingo Road) DATE: January 14, 2022 BACKGROUND: During the November 17, 2020 meeting, the City Council adopted Ordinance 1173, authorizing the sale of property containing approximately 10.06586 acres, more or less, located at the northeast corner of East 96th Street North and North Mingo Road, to The Nest at Bailey Ranch LLC, or Assigns of Tulsa, Oklahoma, in the amount of $802,000.00. Section 4.3, Permitting Period, of the Real Estate Purchase Agreement contract, is a provision that allows 120 days following the Inspection Period for the Buyer to secure all necessary permits for the development of the property. Also included in this section are two (2) consecutive thirty - day extension periods to be granted, if necessary. The Permitting Period began November 3, 2021. The first and second extensions were granted on December 3, 2021 and January 3, 2022, respectively; and, setting the closing date for February 1, 2022. To date, the proposed building plans have been reviewed by the Community Development Department; however, the civil plans are still under review and discussion with the Public Works Department. Therefore, the Buyer is proposing to extend the Permitting Period by thirty (30) days to accommodate the necessary plan reviews, revisions, and approvals by City staff and has requested City Council's consideration and approval of such an amendment to the Real Estate Purchasing Agreement, effectively setting a new closing date of March 3, 2022. RECOMMENDATION: Staff recommends approval of an amendment to Section 4.3, Permitting Period, of the Real Estate Purchasing Agreement extending the time period from 120 days to 210 days. ATTACHMENTS: Proposed Amendment Real Estate Purchasing Agreement AMENDMENT January, 2022 This Amendment is entered into this 18th day of- DecembcrFaQ2:k between The City of Owasso ( "Seller") and Twill Bailey Creek, LE—C, an Oklahoma limited liability company and/or Assigns ( "Buyer "). RECITALS: WHEREAS Seller and Buyer entered into that certain Real Estate Purchase Agreement (the "Agreement ") with an Effective Date of March P, 2021; and WHEREAS *the parties desire to amend the Agreement to allow for additional time for receipt of necessary Permits. NOW THEREFORE, the parties agree that Section 4.3 of the Agreement is deleted in its entirety and replaced with the following: Permitting Period: During the Two Hundred and Ten (210) days after the conclusion of the Inspection Period (the "Permitting Period "), Buyer will obtain all permits necessary for construction of Buyer's intended development. "Permits" mean all governmental approvals necessary for Buyer's intended development and operation of the Property, including, without limitation, all required governmental land use permits and approvals, subject to the provisions of this Section 4.3, or other required permits and approvals for development. If Buyer does not receive all necessary permits, Buyer may terminate this Agreement by written notice to Seller within the Permitting Period (as and if extended). If Buyer elects to terminate this Agreement pursuant to this section, the Deposit shall be promptly returned to Buyer, except as provided in Section 4.2. IN WITNESS WHEREOF, each of the parties has caused its respective, duly- authorized representative to execute this Amendment as of the date set forth above. "BUYER" TWILL BAILEY CREEK, LLC, an Oklahoma limited liability company By: TULSA PROPERTY GROUP, LLC an Oklahoma limited liability company, its Manager By: Name: Nathan Garrett, Manager Address: 1209 S. Frankfort Ave. #302 Tulsa, OK 74120 Attention: Nathan Garrett Phone: 918- 900 -6246 E -mail: nathan @tulsapropertygroup.com "SELLER" THE CITY OF OWASSO By: Name: Bill Bush Title: Mavor Address: 200 South Main Street Owasso, OK, 74055 ATTEST: Juliann M. Stevens, City Clerk Timeline Outline Buyer: Twill Bailey Creek, LLC and /or Assigns Seller: City of Owasso Prepared By Nathan Garrett Development land 10.11 Acres Owasso Contract Effective Date. Purchase Price $802,000 Tasks 03/08/2021 a of nays from Pffnelivn ns,e n.._ Title Company Secure Title & Escrow Tamie Semler! Rachel Blankenship 1 Earnest Money 3 we vale Thurs, March 11, 2021 vYnO Buyer NOIeS 2 Delivery of Seller Information 3 Thurs, March 11, 2021 Seller 3 Inspection Period 120 Tuesday, July 6, 2021 Buyer Expired 4 Permitting Period 330 Tue, February 1, 2022 Buyer PerAmendment#1 Extension 5 Closing 360 Thurs, March 3, 2022 Buyer and Seller 30 days aferPeimitfing Period expiration Date prepared 3/ 812021 Execution Version REAL ESTATE PURCHASE AGREEMENT THIS REAL ESTATE PURCHASE AGREEMENT (the "Agreement ") is made as of the Effective Date between the City of Owasso ( "Seller") and The Nest at Bailey Creek, LLC, an Oklahoma Limited Liability Company and/or Assigns ("Buyer"). The parties agree as follows. 1. Sale and Purchase. Seller agrees to sell and Buyer agrees to purchase the real property appearing on Exhibit A, including all appurtenances and improvements thereon and any oil, gas and other minerals not previously reserved or conveyed (the "Property'). The formal description of the Property will be verified by a new ALTA survey and abstract. 2. Purchase Price. The purchase price for the Property (the "Purchase Price ") shall be Eight Hundred and Two Thousand Dollars ($802,000.00). Buyer shall pay the Purchase Price as follows: 2.1 Deposit. Promptly, and in any event within two (2) business days, after Buyer's receipt of a counterpart of this Agreement duly executed by Seller, Buyer shall deposit with Secure Title & Escrow Tulsa, OK (the "Title Company "), an earnest money deposit in the amount of five thousand dollars ($5,000.00) (the "Deposit") to be held and disbursed in accordance with this Agreement. If Buyer does not elect to terminate this Agreement pursuant to the provisions of Section 4.2, Buyer shall within two (2) business days after the expiration of the Inspection Period (as defined hereon) deposit an additional sum of five thousand dollars ($5,000.00) which shall be added to and become a part of the Deposit; if Buyer does not elect to terminate this Agreement pursuant to the provisions of Section 4.3 or 4.4, Buyer shall within two (2) business days after the expiration of the Permitting Period (as defined hereon) deposit a further additional sum of five thousand dollars ($5,000.00) which shall also be added to and become a part of the Deposit. 2.2 Payment at Closing. At the closing, the Title Company shall deliver the Deposit to Seller and Buyer shall pay to Seller the balance of the Purchase Price by wire transfer to an account designated by Seller. 3. Title to Property. 3.1 Title Commitment. As soon as reasonably practicable, Buyer will order a commitment for an ALTA owner's policy of title insurance covering the Property (the "Title Commitment") issued by the Title Company and legible copies (when legible copies are available) of all documents that are the basis for proposed exceptions to coverage in the Title Commitment (the "Exception Documents"). The Title Commitment shall name Buyer as the proposed insured and state the Purchase Price as the policy amount. 3.2 Survey. Buyer may order a ALTA/NSPS Land Title Survey of the Property that (a) is certified to Buyer, any lender of Buyer and such other party reasonably designated by Buyer, (b) is dated after the Effective Date, (c) is performed by a licensed surveyor acceptable to Buyer and Seller, (d) is prepared in accordance with the 2016 ALTA/NSPS Minimum Standard Detail Requirements for ALTA/NSPS Land Title Surveys, and (e) includes items 1-4, 6(a) and (b), (2032647;) [7(a) and (b)(!),] 8, [9, ] 11,13,16,17,18 and 19 on Table A of such Requirements (the "Survey "). In the event Buyer obtains a Survey pursuant to this Section 3.2, Buyer shall furnish Seller a full - size, complete copy of it. 3.3 Review. Buyer shall have a period (the "Review Period ") ending ten (10) business days after the date on which Buyer has received the last of the Title Commitment, Exception Documents, and Survey in which to notify Seller of any objections to any matters reflected in the Title Commitment, Exception Documents, or Survey. If a revision of the Title Commitment or Survey is delivered to Buyer, Buyer shall have a Review Period of five (5) business days after receipt in which to notify Seller of any objections to any matters referred to in the revision that did not appear in the prior version of the Title Commitment or Survey, as applicable, or the previously furnished Exception Documents. Any matters reflected in the Title Commitment, Exception Documents, or Survey to which Buyer does not object in writing within the Review Period shall be deemed to be permitted exceptions to Seller's title (the "Permitted Exceptions "). The Permitted Exceptions shall include an exception for oil, gas, and other minerals and rights relating thereto. 3.4 Curing Obiections. Seller shall satisfy and cause to be released at or before closing all mortgages, deeds of trust, judgments, or other liens against or security interests in any of the Property ( "Encumbrances "). Seller shall use reasonable efforts to (a) cure all other matters referred to in the Title Commitment, Exception Documents, or Survey to which Buyer objects under Section 3.3 and (b) to satisfy any requirements in the Title Commitment for the issuance of a title insurance policy (other than those that pertain solely to Buyer). If Seller fails to satisfy an Encumbrance at or before the closing, Buyer may terminate this Agreement by notice to Seller or withhold from the payment of the purchase price the amount necessary in the Title Company's reasonable judgment to satisfy the unsatisfied Encumbrances. If despite reasonable efforts Seller is unable to cure Buyer's objections or satisfy the requirements at or before the closing, Buyer may terminate this Agreement or may waive its objections and purchase the Property without reduction of the Purchase Price for the unsatisfied Encumbrances. If Buyer terminates this Agreement pursuant to this section, the Deposit shall be promptly returned to Buyer, except as provided in and subject to Section 4.2. 4. Diligence and Inspections. 4.1 Delivery of Information. Within three (3) business days after the Effective Date, Seller shall provide to Buyer copies of or access to all of the following that are in Seller's possession or control: (a) Reports of any environmental site assessments and other environmental and other inspections and investigations of the Property; (b) Surveys, title reports and opinions, and title insurance commitments or policies for or appraisals of the Property; and (c) Any written communication from any governmental authority or person alleging or citing any violation of laws, regulations, codes, or ordinances with respect to the Property by Seller or any other person, other than communications that are already matters of public record such as litigation filings. (2032647;) 4.2 Inspection Period. During the first One Hundred and Twenty (120) days immediately following the Effective Date (the "Inspection Period' ), Buyer and its representatives, agents, and contractors may make physical inspections of the Property, including Phase I and Phase II environmental site assessments, and otherwise conduct such investigations and take such actions as Buyer deems appropriate to determine whether the Property is suitable for Buyer's intended use. Buyer shall indemnify and hold Seller harmless from and against any and all claims for injury to person or damage to property to the extent caused by the negligence or willful misconduct of Buyer or Buyer's representatives, agents, or contractors on the Property. Seller shall cooperate with Buyer's inspections, and this cooperation shall include providing a designated representative for the environmental site assessment interview and timely responding to other requests for information. If during the Inspection Period, Buyer determines in its sole discretion that the Property is unsatisfactory for any or no reason, Buyer may terminate this Agreement by written notice to Seller within the Inspection Period. If Buyer elects to terminate this Agreement pursuant to this section, the Deposit shall be returned promptly to Buyer. If Buyer does not terminate this Agreement within the Inspection Period, Buyer's initial Deposit of $5,000.00 shall thereafter be nonrefundable unless the closing does not occur by reason of Seller's breach or default hereunder. 4.3 Permitting Period: eriod: During the One Hundred and Twenty (120) days after the conclusion of the Inspection Period (the "Permitting Period "), Buyer will obtain all permits necessary for construction of Buyer's intended development. If, at the end ofthe Permitting Period, Buyer has not obtained all permits, Buyer will have the right to extend the Permitting Period for two (2) consecutive thirty (30 day) periods. "Permits" mean all governmental approvals necessary for Buyer's intended development and operation of the Property, including, without limitation, all required governmental land use permits and approvals, subject to the provisions of this Section 4.3, or other required permits and approvals for development. If Buyer does not receive all necessary permits, Buyer may terminate this Agreement by written notice to Seller within the Permitting Period (as and if extended). If Buyer elects to terminate this Agreement pursuant to this section, the Deposit shall be promptly returned to Buyer, except as provided in Section 4.2. 4.4 Seller's Right to Demand Closing. In the event that Seller has performed all of its obligations under this Agreement and Buyer does not close the transaction contemplated by this Agreement on or before the thirtieth (30i1') day after the conclusion ofthe Permitting Period, Seller shall have the right, at Seller's sole option, to either terminate this agreement and keep the entire Deposit or extend the closing date. 5. Closing. The closing of the sale of the Property shall occur in the offices of the Title Company on a day acceptable to Buyer and Seller that is not later than thirty (30) days after the conclusion of the Permitting Period (as and if extended). At or before the closing, Seller and Buyer shall each take such actions and deliver the duly executed documents necessary or appropriate to close the sale as described in this Agreement. All documents shall be reasonably satisfactory to the legal counsel for the parties. The actions to be performed and the documents to be delivered at the closing include those described in the following Sections 6.1 and 6,2. 6.1 Seller's Acts and Deliveries. Seller shall deliver the following: (a) A duly executed and acknowledged special warranty deed conveying indefeasible fee simple marketable title to the Property free and clear of any lien, security interest, [2032649;} claim, encumbrance, restriction, or other matter created or incurred by Seller other than the Permitted Exceptions; (b) A certificate (the "Closing Certificate ") executed by Seller and representing and warranting to Buyer that each of Seller's representations and warranties in this Agreement is accurate in all material respects as of the closing date as if made on the closing date, and, with respect to any representation and warranty that is not true and correct in all material respects, a statement in reasonable detail of any fact or condition that has caused the representation and warranty to not be true and correct in all respects; (c) An affidavit and indemnity of Seller enabling the Title Company to insure Buyer's title to the Property without exceptions for unfiled liens, rights of parties in possession, and matters created, first appearing in the public records, or attaching subsequent to the effective date of the Title Commitment but prior to Buyer's acquisition of title of record to the Property; (d) An affidavit of Seller sufficient to relieve Buyer of its withholding obligations under § 1445 of the Internal Revenue Code; (e) A settlement statement; and (i) Possession of the Property in substantially the condition existing on the Effective Date, subject expressly to the matters described in Section 6.1(b). 6.2 Buyer's Acts and Deliveries. Buyer shall deliver the following: (g) Balance of the Purchase Price; and (h) A settlement statement. 7. Costs. Seller shall pay Seller's attorneys' fees, the cost of curing Buyer's title objections, 50% of the cost of a new ALTA Survey, the Oklahoma Documentary Stamp Tax applicable to the deed, and one -half of the closing fees and expenses of the Title Company. Buyer shall pay Buyer's attorneys' fees, the cost of Buyer's inspections of the Property, 50% of the cost of a new ALTA Survey, the cost of recording the deed, all abstracting and title examination costs of the Title Company, the premium for the title insurance policy, the cost of the endorsements to the title insurance policy described in Section 11.2(b), and one -half of the closing fees and expenses of the Title Company. The liability of the parties for these allocated costs shall survive any termination of this Agreement. 8. Prorations. Seller shall be responsible for the payment of all ad valorem real estate taxes, personal property taxes, and assessments assessed against the Property for the years prior to the year of the closing and all matured and unmatured special assessments against the Property. Ad valorem real estate taxes, personal property taxes, and assessments for the year of the closing shall be prorated between Buyer and Seller. If the actual amount of ad valorem taxes and assessments for the year of the closing cannot be determined at the closing, the proration shall be on the basis of the amount assessed for the prior year, adjusted to reflect changes in assessed value or rates known to be in effect for the year of the closing. (2032647:) 4 9. Seller's Representations and Warranties. 9.I Seller's Representations and Warranties. To induce Buyer to enter into this Agreement and to accept title to and possession of the Property, Seller represents and warrants to Buyer as follows. (a) Authori . Seller has the power and authority to execute, deliver, and perform this Agreement. The person signing this Agreement on behalf of Seller is authorized to do so. The execution, delivery, and performance of this Agreement by Seller have been duly authorized by all requisite company action of Seller, and no further action is necessary to authorize such action or to make this Agreement the valid and binding obligation of Seller. The execution, delivery, and performance of this Agreement by Seller will not violate any provision of Seller's organizational documents. (b) No Violation. The execution, delivery, and performance by Seller of its obligations under this Agreement will not conflict with or result in a breach of, or constitute a default under, any of the provisions of any judgment, decree, or order by which the Property or Seller is bound or any contract to which Seller is a party or by which Seller is bound. (c) Pending Actions. To Seller's knowledge, there is no action, suit, arbitration, administrative or judicial proceeding, or unsatisfied order or judgment pending or, to Seller's knowledge, threatened against Seller that pertains to the Property or the transaction contemplated by this Agreement, except as provided herein. (d) Condemnation. To Seller's knowledge, there are no condemnation or eminent domain proceedings of any type pending or threatened that relate to any part of the Property, and Seller has received no notice, oral or written, of the desire of any public authority or other entity to take or use any part of the Property. (e) Compliance. To Seller's knowledge, the Property and the use of the Property have been and are in compliance with all applicable zoning ordinances, building codes, and other applicable laws and regulations, including those related to the protection of human health, safety, the environment, wildlife, or natural resources. (f) Environmental Matters. To Seller's knowledge no hazardous substances have been used, generated, treated, stored, disposed of, released, or handled by Seller on or under the Property, except in compliance with applicable environmental laws and the ownership and operation of the Property by Seller is in compliance with all environmental laws. (g) "As is where is." Purchaser is acquiring the Property on an "as is, where is" basis. 9.2 Subsequent Events. If prior to the closing Seller obtains knowledge that any of Seller's representations and warranties are inaccurate in any material respect, Seller shalt promptly notify Buyer of such fact. (2032647.1 5 10. Buyer's Representations and Warranties. 10.1 Buyer's Representations and Warranties. To induce Seller to enter into this Agreement, Buyer represents and warrants to Seller as follows. (a) Authority Buyer has the power and authority to execute, deliver, and perform this Agreement. The person signing this Agreement on behalf of Buyer is authorized to do so. The execution, delivery, and performance of this Agreement by Buyer have been duly authorized by all requisite company action of Buyer and its managers and members, and no further action is necessary to authorize such action or to make this Agreement the valid and binding obligation of Buyer. The execution, delivery, and performance of this Agreement by Buyer will not violate any provision of Buyer's organizational documents. (b) No Violation. The execution, delivery, and performance by Buyer of its obligations under this Agreement will not conflict with or result in a breach of, or constitute a default under, any of the provisions of any judgment, decree, or order by which Buyer is bound or any contract to which Buyer is a party or by which Buyer is bound. 10.2 Survival of Representations and Warranties. Buyer's liability for its representations and warranties shall survive the closing. 11. Conditions to Buyer's Obligation to Close. The obligation of Buyer to close and purchase the Property shall be subject to and conditioned upon the satisfaction, at or before the closing, of all the conditions below, which Buyer may waive in its absolute discretion. Seller and Buyer shall use reasonable efforts to cause the satisfaction of the conditions at or before the closing. 11.1 Performance. Seller shall have performed all of its obligations under this Agreement in all material respects, including making the deliveries required by Section 6.1. 11.2 Title Insurance. Buyer shall have received: (a) A copy of the Title Commitment marked and initialed by the Title Company to evidence the satisfaction of all requirements and the Title Company's binding obligation to issue to Buyer an owner's policy of title insurance insuring in Buyer indefeasible fee simple marketable title to the Property with no exceptions other than the Permitted Exceptions; and (b) The Title Company's binding commitment to issue the following endorsements: (i) owner's comprehensive endorsement; (ii) access and entry endorsement (ALTA 17); (iii) same as survey endorsement (ALTA 25); and (iv) deletion of arbitration endorsement. 11.3 Representations and Warranties. Seller's representations and warranties in this Agreement shall be true and correct in all material respects as of the closing without regard to the Closing Certificate. 12. Conditions to Seller's Obligation to Close. The obligation of Seller to close and sell the Property shall be subject to and conditioned upon the satisfaction, at or before the closing, of all the conditions set out below, which Seller may waive in its absolute discretion. Seller and (2032647,) 6 Buyer shall use reasonable efforts to cause the satisfaction of the conditions at or before the closing. I2.1 Performance. Buyer shall have performed all of its obligations under this Agreement in all material respects, including making the deliveries required by Section 6.2. 122 Representations and Warranties. Buyer's representations and warranties in this Agreement being true and correct in all material respects as of the closing. 13. Breach or Failure to Close: Termination. If the sale of the Property is not consummated due to Buyer's default, then Seller may, as its sole remedy for such default, terminate this Agreement and receive the Deposit as liquidated damages and not as a penalty, because the actual damages to Seller from a default by Buyer would be impractical or extremely difficult to ascertain and the amount of the Deposit is a reasonable estimate thereof. Ifthe sale of the Property is not consummated due to Seller's default, then Buyer shall be entitled to receive the return of the Deposit and seek damages, or to seek specific performance of this Agreement, and any other remedies available under law if Buyer so chooses. 14. Covenants of Seller. 14.1 Insurance. At all times prior to closing, Seller shall keep the Property insured against loss or damage by fire and all risks covered by Seller's insurance that is currently in force. 14.2 Notices. Other than as already provided elsewhere herein, Seller shall promptly furnish Buyer with copies of all written notices from any governmental authority regarding any alleged violation of any law, statute, ordinance, regulation, or order of any governmental authority relating to the Property. 15. Condemnation. Seller will give Buyer prompt notice of any actual or threatened condemnation of any portion of the Property. If prior to the closing there is a threat of or an actual condemnation of any material portion of the Property, Buyer may terminate this Agreement by written notice to Seller within five days after Buyer receives the notice described above or at the closing, whichever is earlier. If Buyer elects to terminate this Agreement, the Deposit shall be promptly returned to Buyer. If Buyer does not elect to terminate this Agreement, Buyer shall purchase the Property without reduction of the Purchase Price and Seller shall assign or pay to Buyer all of Seller's interest in any condemnation award. 16. Miscellaneous. 16.1 No Solicitation or Other Bids. Seller shall not, directly or indirectly: (a) encourage, solicit, initiate, facilitate or continue inquiries regarding an offer from any person or entity other than Buyer relating to acquisition of all or any portion of the Property (an "Offer"); (b) enter into discussions or negotiations with, or provide any information to, any person or entity concerning a possible Offer; or (c) enter into any agreements or other instruments regarding an Offer. 16.2 Time. Time is of the essence of this Agreement. If the last day of any time period provided in this Agreement falls on a Saturday, Sunday, or legal holiday, the period shall (203264:) be extended to end on the next day that is not a Saturday, Sunday, or legal holiday. "Business days" as that term is used herein shall refer to days that are not Saturdays, Sundays or legal holidays. 16.3 Notice. All notices required or permitted by this Agreement shall be in writing and shall be personally delivered in return for a receipt or sent by certified mail, return receipt requested, or by nationally recognized overnight courier, to the addresses set forth below, or transmitted by email to the email address for each party set forth. All notices shall be deemed given on the date of delivery or, if sent by (a) mail as provided above, on the date receipted for, (b) courier as provided above, on the next business day after delivery to the courier, or (c) email as provided above, upon receipt if sent prior to 5:00 p.m. local time at the address of the addressee, or on the next business day if delivered after 5:00 p.m. local time or on a Saturday, Sunday, or legal holiday. Any party may change the address to which notices are to be given by giving notice in this manner. 16.4 Construction. The rule of construction that a document is to be construed most strictly against the party who drafted the document is not applicable to this Agreement because both parties participated in the preparation of this Agreement. "Includes" and "including" are not limiting. References to sections and exhibits are to sections and exhibits of this Agreement unless otherwise indicated. References to numbered sections include included sections. For example, a reference to Section 1 includes Section 1.1, 1.1(a), etc. Any reference to "this Agreement" is a reference to this Agreement as a whole, and is not limited to the particular section, clause, exhibit, schedule, or provision in which the reference appears, and to this Agreement as amended, supplemented, replaced, or assigned from time to time. The meanings of defined terms are applicable to the singular and plural forms of the defined terms. 16.5 Counterpart s. This Agreement may be executed in one or more counterparts. It shall not be necessary for the signature of more than one party to appear on any single counterpart. Each counterpart shall be deemed to bean original of this Agreement, and all counterparts together shall constitute one agreement. The exchange of executed counterparts of this Agreement or of signature pages by facsimile or other electronic transmission shall constitute effective execution and delivery of this Agreement, and such counterparts may be used in lieu of the original for all purposes. 16.6 Attorneys' Fees. In any action between the parties relating to this Agreement (including arbitration as provided in Section 16.7), the prevailing party shall be entitled to an award of its attorneys' fees and costs. 16.7 Waiver of Jury Trial In Favor of Compulsory Arbitration. The parties irrevocably waive any right to demand that any action, proceeding, or counterclaim arising out of or in any way related to this Agreement or the relationship of the parties being tried by jury, electing instead for disputes to be resolved by compulsory arbitration as provided in this Section 16.7. This waiver extends to any right to demand a trial by jury arising from any source, including the Constitution of the United States or any state therein, common law, or any applicable statute or regulation. The parties acknowledge that they are knowingly and voluntarily waiving their rights to demand trial by jury and that such waiver is a material consideration for entering into and performing this Agreement. Any dispute, claim, or controversy arising out of or relating to this Agreement or breach, termination, enforcement, interpretation, or validity thereof, including the (W3z647;) determination of the scope or applicability of this Agreement to arbitrate, shall be determined by arbitration in Tulsa County, Oklahoma, before a sole arbitrator, in accordance with the laws of the State of Oklahoma for agreements made in and to be performed in this State. The arbitration shall be administered by an arbitrator selected by the agreement of the parties, or if they are unable to agree on such a selection, then an arbitrator selected by the American Arbitration Association; in any event, the arbitration shall be conducted in accordance with the Commercial Arbitration Rules of the American Arbitration Association now or hereafter in effect. Judgment entered upon any arbitral award or decision rendered may be enforced by appropriate judicial action. 16.8 1031 Like -Kind Exchange. Seller and Buyer will each, at no cost or liability to the other, reasonably cooperate with each other for purposes of allowing Seller to effect a "like - kind" exchange in accordance with Section 1031 of the Internal Revenue Code in connection with the purchase and sale of the Property. 16.9 Assignment. Buyer may assign its rights under this Agreement, in whole or in part, only to one or more assignees in which Buyer owns an equity interest. 16.10 Further Assurances. Each party will without further consideration execute and deliver such other documents and take such other actions, whether prior or subsequent to the closing, as may be reasonably requested by the other party to consummate or evidence more effectively the purposes or subject matter of this Agreement. 16.11 Entire Agreement. This Agreement constitutes the final expression of the entire agreement between Buyer and Seller and there are no agreements, understandings, restrictions, warranties, or representations other than those stated in this Agreement. This Agreement cannot be amended except by a writing executed by Buyer and Seller. 16.12 Expiration of Offer: Effective Date. Buyer's execution and delivery of this Agreement constitutes an offer to Seller that Seller may accept only by delivery of a counterpart of this Agreement, duly executed by Seller, to Buyer before 5:00 p.m. (CT) on Friday, November 20, 2020. At any time prior to Seller's acceptance, Buyer may revoke the offer by delivery of a notice of Buyer's revocation to Seller. The Effective Date shall be the first business day after the day on which Seller accepts this offer in the manner provided above. The parties shall confirm the Effective Date in writing. 16.13 Licensed Real Estate Disclosure. Nathan Garrett is a licensed real estate broker in the state of Oklahoma and is a principal in the transaction as part of the Buyer. (Signatures on following pages) {2032647 ;) Execution Version Signature Page to Real Estate Purchase Agreement EXECUTED on this day of , 2020. TIIE NEST AT BAILEY CREEK, LLC an Oklahoma limited liability company By: TULSA PROPERTY GROUP, LLC an Oklahoma limited liability company, its Manager By: Name: Nathan Garrett, Manager Address: 1209 S. Frankfort Ave. #302 Tulsa, OK 74120 Attention: Mr. Nathan Gannett Phone: 915- 900 -6246 E -mail: nathan @tulsapropertygroup.com THE CITY OF OWASSO Address: Attention: Fax: Email: 120:2647:1 Signature Page Acceptance and Receipt by Title Company The undersigned acknowledges receipt of the Deposit and agrees to hold the Deposit in accordance with this Agreement. EXECUTED.on , 20_ {2032649;) Exhibit A Legal Description: A tract of land located in Government Lot Four (4) in the Southwest Quarter (S W /4) of Section Eighteen (18) in Township Twenty -one (2 1) North and Range Fourteen (14) East of the Indian Base and Meridian (1.B. &M.), according to the U.S. Government Survey, thereof; Tulsa County, State of Oklahoma; being more particularly described as follows: Commencing at the SW comer of the SW /4 of Sec. 18, T -21 -N, R -14 -E, I.B. &M.; Thence N 00°57'40" W along the west line of said SWA a distance of 590.10 feet; Thence N 88°56'16" E a distance of 50.00 feet to the Point of Beginning being on the boundary of HONEY CREEK, a subdivision in the City of Owasso, according to the recorded plat, thereof; Thence N 88°56'16" E along the boundary of said HONEY CREEK a distance of 827.55 feet to the boundary of COVENTRY GARDENS, a subdivision in the City of Owasso, according to the recorded plat, thereof; Thence S 01°05'27" E along the boundary of said COVENTRY GARDENS (until otherwise noted) a distance of 119.58 feet; Thence S 88°5433" W a distance of 20.00 feet; Thence S 01°05'27" E a distance of 420.00 feet; Thence S 88°54'13" W parallel with and 50 feet north of the south line of said SW /4 (and leaving the boundary of said COVENTRY GARDENS) a distance of 783.77 feet; Thence N 46°01'43" W a distance of 35.31 feet; Thence N 00°57'40" W parallel with and 50.00 feet east of the west line of said SW/4 a distance of 5I5.07 feet to the Point of beginning, and containing 10.063 acres, more or less. To be verified by ALTA Survey (2032647:1 TO: The Honorable Mayor and City Council FROM: Warren Lehr City Manager SUBJECT: Proposed Agreement with the Owasso Chamber of Commerce DATE: January 14, 2022 BACKGROUND: During the December 2021 and January 2022 Worksession meetings, the City Council discussed a proposal submitted by the Chamber for a contractual agreement to provide professional services to execute the City's Economic Development Strategic Plan in exchange for a fee. The proposed concept of cities contracting economic development services, or some variation thereof, is common in other communities, such as Edmond, Enid, and Bartlesville, to name a few. While the mission of the City and the Chamber differ in scope and focus, one commonality is the interest in the success of Owasso's business sector and working cooperatively to attract, create, and enhance economic growth and development for the City and its citizens. The proposed concept represents a stark change from the manner in which the City has approached economic development, but staff concluded the concept was worthy of consideration. The Chamber's proposal contains a clear set of contracted services directly drawn from the Economic Development Strategic Plan. These services are currently being performed by the City's Economic Development Director and Economic Development Coordinator, and the responsibility to execute those services would shift to the Chamber should this model be implemented by the City. In consideration of the proposal, staff studied current and previous budgets to identify actual costs related to executing the City's Economic Development Strategic Plan, as well as, opportunities for cost savings, primarily derived from duplicated services, efficiencies, and reduced personal service costs should the City's Economic Development Department be eliminated. City staff communicated during the Worksession discussions that given an expectation of continued success and cost savings, the risk for contracted services to the City is notably reduced by having the agreement considered annually by the City Council. During the January Worksession, Vice Mayor Lewis, Councilor Frugo, and Councilor Bonebrake requested an item be placed on the January 18, 2022, City Council agenda for consideration and action regarding the Chamber's proposal. COMPENSATION FOR SERVICES: The Chamber's original proposal set the compensation for services in the annual amount of $325,000.00. Following a detailed, line -by -line assessment of current and previous expenditure budgets for economic development related activities, City staff proposed a revised compensation for services in the annual amount of $226,000.00. Subsequently, the Chamber submitted a revised agreement with an annual compensation of $275,000.00. ATTACHMENT: Owasso Chamber of Commerce's Proposed Agreement This AGREEMENT FOR ECONOMIC DEVELOPMENT PARTNERSHIP (hereafter "Agreement ") is made and entered into this day of , 2022, by and between the CITY OF OWASSO, OKLAHOMA, a municipal corporation ( "City" or "City of Owasso "), and the OWASSO CHAMBER OF COMMERCE ( "Chamber "), a non - profit business organization incorporated under the laws of the State of Oklahoma, with its principle office within the limits of the City of Owasso, Oklahoma. AGREEMENT PREAMBLE WHEREAS, the City of Owasso and its citizens benefit from the existence of retail business, industry, commerce, and the positive impact on the economy of the City and its citizens; and; WHEREAS, the preservation and expansion of existing industry, commerce and businesses is in the best interest of the economic well -being of the City of Owasso, its business community, and its citizens; and, WHEREAS, workforce education and development; support of all local businesses; and legislative advocacy efforts serve to enhance the business and economic development environment of Owasso; and, WHEREAS, the attraction of new industry, commerce and businesses is important to the economic well -being and economic development of the City of Owasso and its citizens; and, WHEREAS, the economic well -being of the City of Owasso is essential to increase the revenue of the City of Owasso for the benefit of its citizens; and, WHEREAS, the preservation and stimulation of economic development is a proper public purpose for which public funds may be expended to promote the general health, safety and welfare of the citizens of the City of Owasso; and, WHEREAS, the Owasso Chamber of Commerce is a non -profit organization of Owasso businesses, people, and concerned citizens of Owasso, working cooperatively to promote an environment that attracts, creates, and enhances business and economic growth and development for the City of Owasso and its citizens; and, WHEREAS, both the City of Owasso and Chamber recognize the opportunity for a consolidated, pro- active approach to promote economic development in the City of Owasso; and, WHEREAS, the City is desirous of contracting with the Chamber to promote and execute the City of Owasso's Economic Development Strategic Plan to create enhanced value and opportunity for the City and its citizens. NOW, THEREFORE, in consideration of the covenants and mutual promises stated in this Agreement, and in furtherance of the above recitals, the City and Chamber agree as follows: TERMS OF THE AGREEMENT 1. VALID CONSIDERATION. The City contracts with Chamber to perform certain economic development services for the benefit of the City, and the Chamber accepts such engagement, pursuant to the Terms of the Agreement. Both the City and Chamber acknowledge and agree that mutual valid consideration is provided by each party to the other under this Agreement. 2. SCOPE OF SERVICES. The scope of services to be provided by the Chamber under this Agreement includes, but is not limited to, the following: A. Partnering with the City to make the most efficient use of the City and Chamber's combined economic development resources and abilities; B. Executing the City of Owasso Economic Development Strategic Plan to strengthen Owasso's value proposition, grow and recruit businesses to Owasso, and to market Owasso to promote, stimulate, and encourage the growth and development of the retail, commercial and industrial resources within the City of Owasso; C. Regularly reviewing and recommending updates to the City of Owasso Economic Development Strategic Plan for comprehensive economic development within and near City of Owasso fence -line; D. Developing plans, when necessary, to help preserve jobs for the citizens of Owasso, and to promote and create new jobs and new employment opportunities E. Promoting advocacy by providing education and information about issues, policy, and legislation affecting the City of Owasso; F. Expanding the economic base of Owasso by seeking diversification of employment opportunities; G. Encouraging and assisting existing industry to maintain or expand employment opportunities; H. Implementing an aggressive marketing program, as funds permit, to attract new investment to Owasso; I. Providing marketing materials as appropriate, commensurate with funding, to those individuals and entities evaluating Owasso for future and further investment and resulting economic impact; Developing, programming, coordinating, and hosting Owasso's annual Economic Summit; 2 K. Administering the Redbud District website and coordinating marketing and development efforts within the Redbud District; L. Performing such other economic development duties as are necessary to the benefit of Owasso and the market area. 3. PROPER STAFFING. The Chamber shall provide all necessary administrative support to carry out the duties set forth in above Paragraph 2 and its sub -parts, including but not limited to adequate staff, office space, and equipment within the context of its funding and budget. 4. SEPARATE ENTITY ACKNOWLEDGEMENT. The City and Chamber acknowledge that the Chamber is its own separate legal entity which operates independently, and is governed by its own Board of Directors and corporate by -laws. The Chamber is not an extension or advisory board of the City of Owasso, and it is expressly understood and agreed that in the performance of its duties under this Agreement, the Chamber is acting as an independent contractor of the City, and not as an agent of the City. 5. COMPENSATION FOR SERVICES. In exchange for the economic development services provided under this Agreement by the Chamber, the City agrees to compensate and provide the Chamber as follows: A. The City shall pay the Chamber an annual amount of Two Hundred Seventy -Five Thousand Dollars ($275,000), payable monthly in equal 1/12 installments, dependent upon the continued employment of Chelsea Levo Fearyas the President -Chief Executive Officer of the Chamber. If, for any reason, Chelsea Levo Feary ceases to hold this position with the Chamber prior to the expiration of the one -year term of this Agreement, this Agreement shall immediately terminate. Notwithstanding the above, the City shall pay ithe monthly amount described herein for a full two (2) month period following any such termination. In addition, the City and Chamber may enter into a new agreement subsequent to the hiring of a new Chamber President -Chief Executive Officer, if both parties are desirous of continuing the contractual relationship contemplated in the Agreement. B. It is understood that prospects for commercial or industrial development projects may request information of the Chamber about development guidelines or possible incentives. The Chamber President -Chief Executive Officer will accommodate all such requests by directing potential developers /investors to the appropriate City of Owasso contacts and/or will guide all such prospects to file application for any incentives through the City's incentive application process. The Chamber may use its own cash reserve balance to provide incentives with no direction from the Owasso City Council. C. The City and Chamber may consider jointly participating together in the pursuit and funding of economic development infrastructure grants and developments, at the discretion of Chamber and the City. For grants in which the allocated funding is limited to design or engineering costs, the Chamber shall bear sole responsibility for any matching portion required under the terms of the grant and shall receive the full amount of the grant. D. The Chamber shall be responsible for providing requested information or documentation regarding any grant or incentive involving the City. E. The City may allow the Chamber to use available City Hall space, when necessary and available, to host meetings or gatherings in furtherance of the Chamber's economic development efforts on behalf of Owasso and its citizens. F. As additional compensation, the City will: 1. lease the building currently leased by the Chamber, at the below market rate of Six Hundred Fifty -Eight Dollars and Thirty -Three Cents ($658.33) per month; and, 2. financially contribute (in lieu of Chamber membership dues) towards the City and Chamber's joint participation in the Tulsa Home and Garden Show in the amount of $1,500.00. 6. FINANCIAL DISCLOSURE. The Chamber shall continue to be solely responsible for the maintenance of its full books of accounts with correct entries of all expenditures in the administration of this Agreement and its normal business operations. The Chamber's books of accounts shall remain the property of the Chamber. The Chamber shall continue its practice of engaging an independent accountant to perform an annual; financial audit and prepare a written report of the same, which report shall be open to the inspection` of the City upon reasonable notice. 7. STATUS UPDATES. The Chamber President -Chief Executive Officer shall provide monthly updates to the City Manager or his/her' designee and quarterly presentations to the Owasso Economic Development' Authority regarding economic development activities and the Chamber's progress in` meeting ' the goals and objectives identified in Paragraph 2 of this Agreement. The Chamber President -Chief Executive Officer shall make an annual presentation to the City Council. The Chamber President -Chief Executive Officer may also be called upon and will make additional presentation(s) to the City Council, only if deemed necessary by the City Manager. 8. ANNUAL WRITTEN REPORT. The Chamber shall furnish an annual detailed written report ( "Annual Report") to the City which states accurately the progress made in implementing the goals and objectives outlined under this Agreement. The President -Chief Executive Officer of the Chamber shall present the Annual Report to the City Council as deemed necessary by the City Manager, and will be prepared to discuss the Report with the City Council, to explain the Chamber's economic development activities under this Agreement. 9. HOLD HARMLESS. The Chamber assumes full and complete liability for the actions of its officers, employees, and agents, and agrees to hold the City harmless from any claim for damages resulting from the actions of Chamber, its officers, employees, and agents. 10. CHAMBER BOARD OF DIRECTORS. The Mayor of the City may appoint himself or herself, or a fellow member of the City Council of the City, to serve as a voting member of the Board of Directors of the Chamber for a term comprising the length of this Agreement. The City Manager of the City shall continue to serve as a non - voting, ex- officio member of the Board of Directors of the Chamber, in a representative capacity on behalf of the City and the Owasso Economic Development Authority. The City Manager shall not cast any vote, but shall serve in an advisory capacity and as a full participant in Board discussions. 11. LEGAL COMPLIANCE. The Chamber agrees to take any steps necessary to amend its by -laws, if necessary, to comply with its duties and obligations under this Agreement. The City enters into this Agreement under authority of OKLA. STAT. tit. 11, §22 -101. 12. TERM. The term of this Agreement is for one year ( "Agreement Term "). At least 90 days prior to the expiration of the Agreement Term, designated representatives of the City and Chamber shall meet and confer regarding the desirability of entering into a new one -year agreement, and, if necessary, will review and consider any proposed or necessary substantive changes to effectuate the official consideration and adoption of a new one -year agreement in a timely fashion. 13. AMENDMENTS. The Agreement may amended from time to time by the mutual agreement of the City and Chamber, in writing. Any amendment shall become effective when approved and executed by the governing bodies of the City and Chamber. 14. OFFICIAL NOTICE. Written notices required or authorized by this Agreement shall be deemed properly given or served on the City if mailed via certified mail, return receipt requested, to the City at the following address, City of Owasso, ATTN: City Manager, 200 South Main Street, Owasso, OK 74055, and to the Chamber at the following address, Owasso Chamber of Commerce, ATTN: Chamber President, 315 South Cedar Street, Owasso, OK 74055. 15. NON- DISCRIMINATION. The City and Chamber covenant and agree that (1) no person on the ground of race, color, sex, religion, national origin, age (40 +), or disability shall be excluded from participation in, denied the benefit of, or otherwise be subjected to discrimination under the terms of this Agreement; and (2) that in carrying out the terms and conditions of this Agreement, no person shall be subjected to discrimination on the basis of their inclusion in one of the aforementioned classes protected under federal law. 16. LEGAL COMPLIANCE. The Chamber agrees to conduct its business under this Agreement in compliance with federal, state, or local laws, ordinances, or regulations applicable to the conduct of its operations under the terms of this Agreement. 17. CONTRACT INTERPRETATION. The City and Chamber acknowledge that they have mutually participated in drafting this Agreement; have reviewed the terms of this Agreement with their respective legal counsel; and, accordingly, agree that the rule of contract interpretation (that contracts shall be construed against the drafter) does not and shall not apply in the event of any dispute requiring the interpretation and enforcement of this Agreement. 18. SURVIVAL CLAUSE. In the event any provision or portion of a provision of this Agreement is found by a court of competent jurisdiction to be void, voidable, or for any reason unenforceable, the City and Chamber agree that the remaining portions shall remain in full force and effect. 19. MULTIPLE SIGNATURE PAGES. This Agreement may be executed in duplicate counterparts, each of which shall be deemed an original. 20. CHOICE OF LAW AND VENUE. This Agreement is governed by the laws of the State of Oklahoma. The City and Chamber agree that jurisdiction and venue for any dispute between the parties or arising under this Agreement shall be exclusively in the state or federal courts serving Tulsa County, Oklahoma. 21. NON - ASSIGNABILITY. This Agreement is non - assignable. IT IS THEREFORE AGREED TO AND ENTERED THIS day of January 2022. N. CITY OF OWASSO GENERALFUND PAYROLL PAYMENT REPORT PAY PERIOD ENDING 0110112022 Department Payroll Expenses Total Expenses 105 Municipal Court 5,686.89 9,169.33 110 Managerial 23,811.19 33,437.98 120 Finance 21,832.14 33,387.55 130 Human Resources 9,821.44 14,810.82 160 Community Development 20,035.89 31,319.25 170 Engineering 20,140.66 31,446.94 175 Information Systems 18,285.80 28,074.86 181 Support Services 9,671.40 14,855.82 190 Cemetery 1,646.11 3,235.11 201 Police Grant Overtime 3,445.92 3,491.35 215 Central Dispatch 2,603.44 3,905.41 221 Animal Control 4,412.69 6,585.87 280 Emergency Preparedness 2,460.89 3,459.26 370 Stormwater /ROW Maint. 7,700.09 12,861.05 515 Park Maintenance 8,158.04 12,735.01 520 Culture /Recreation 10,551.00 17,924.99 550 Community- Senior Center 6,848.01 9,081.56 580 Historical Museum 764.40 853.44 710 Economic Development 5,026.45 7,600.72 720 Strong Neighborhood 351.52 544.34 General Fund Total 183,253.97 278,780.66 185 Garage Fund Total 10 150.21 17 111.67 255 Ambulance Fund Total 553.85 618.38 215 E911 Communication 22,898.40 36,426.44 250 Fire Fund 37 Total 203 766.74 311,949.96 201 Police Fund 38 Total 189 959.88 293,481.61 300 Streets Fund 39 Total 20,229.25 35,652.43 370 Stormwater Fund 27 Total 3,704.70 5,672.01 150 Worker's Compensation Total 720 Strong Neighborhoods Total 4,584.19 §.884 23 CITY OF OWASSO HEALTHCARE SELF INSURANCE FUND CLAIMS PAID PER AUTHORIZATION OF ORDINANCE #789 AS OF 1113/22 VENDOR DESCRIPTION AETNA HEALTHCARE MEDICAL SERVICE HEALTHCARE MEDICAL SERVICE HEALTHCARE MEDICAL SERVICE HEALTHCARE MEDICAL SERVICE HEALTHCARE MEDICAL SERVICE HEALTHCARE MEDICAL SERVICE HEALTHCARE DEPT TOTAL DELTA DENTAL DENTAL MEDICAL SERVICE DENTAL MEDICAL SERVICE ADMIN FEES DENTAL DEPT TOTAL HEALTHCARE SELF INSURANCE FUND TOTAL AMOUNT 69,953.14 32,133.69 23,120.97 65,222.71 719.46 45,447.36 236,597.33 6,033.56 7,210.80 3,216.13 16,460.49 253,057.82 CITY OF OWASSO GENERAL FUND & HALF -PENNY SALES TAX FISCAL YEAR 2021 -2022 Budgetary Basis Statement of Revenues & Expenditures As of December 31, 2021 Q: \Finance (120)\Accounting \Reports\fy22 \GF Financials MONTH YEAR PERCENT TO -DATE TO -DATE BUDGET OFBUDGET REVENUES: Taxes $ 3,492,850 $ 20,982,699 $ 37,418,096 56.08% Licenses & permits 19,847 204,525 256,639 79.69% Intergovernmental 87,544 4,026,327 7,968,678 50.53% Charges for services 57,035 384,864 764,001 50.37% Fines & forfeits 12,705 83,904 219,100 38.29% Other 17,391 175,638 211,565 83.02% Interest 7,471 36,664 97,761 37.50% TOTAL REVENUES $ 3,694,841 $ 25,894,620 $ 46,935,840 55.17% EXPENDITURES: Personal services $ (1,903,148) $ (11,528,680) $ (24,433,470) 47.18% Materials & supplies (248,410) (725,717) (2,062,635) 35.18% Other services (189,735) (1,272,586) (2,946,249) 43.19% Capital outlay (190,235) (225,410) (4,062,397) 5.55% Deferred Budget - COVID Grant 0.00% TOTAL EXPENDITURES $ (2,531,528) $ (13,752,393) $ (33,504,751) 41.05% REVENUES OVER EXPENDITURES $ 1,163,313 $ 12,142,227 $ 13,431,089 TRANSFERS IN (OUT): Transfers in - Sales Tax $ 1,724,202 $ 10,318,592 $ 18,322,425 56.32% Transfers out (2,767,892) (19,354,692) (39,448,026) 49.06% TOTAL TRANSFERS $ (1,043,690) $ (9,036,100) $ (21,125,601) 4177% NET INCOME (LOSS) $ 119,623 $ 3,106,127 $ (7,694,512) ENCUMBRANCES OUTSTANDING $ (446,034) FUND BALANCE (Budgetary Basis) Beginning Balance 18,057,397 18,057,397 Ending Balance $ 20,717,490 $ 10,362,884 Q: \Finance (120)\Accounting \Reports\fy22 \GF Financials Annual Comprehensive Financial Report City of Owasso, Oklahoma Year Ended June 30, 2021 City Manager Warren Lehr Assistant City Manager Chris Garrett PREPARED BY: Director of Finance Linda Jones -Holt Assistant Director of Finance Jennifer Newman CITY OF OWASSO, OKLAHOMA ANNUAL COMPREHENSIVE FINANCIAL REPORT Year ended June 30, 2021 TABLE OF CONTENTS INTRODUCTORY SECTION Page Letter of Transmittal i - vii GFOA Certificate of Achievement viii List of Principal Officials ix Organizational Chart x FINANCIAL SECTION Independent Auditor's Report A - C Management's Discussion and Analysis MDA -1 - MDA -1 1 Basic Financial Statements Government -wide Financial Statements: Statement of Net Position 1 Statement of Activities 2 Fund Financial Statements: Governmental Funds: Balance Sheet 3 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position 4 Statement of Revenues, Expenditures and Changes in Fund Balances 5 Reconciliation of Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities 6 Proprietary Funds: Statement of Net Position 7 Statement of Revenues, Expenses and Changes in Net Position 8 Statement of Cash Flows 9-10 Notes to Basic Financial Statements FN 1 - FN 57 Required Supplementary Information Schedule of Changes in the City's Total OPEB Liability & Related Ratios RSI - 1 Schedule of Net Changes in Pension Liability Oklahoma Firefighters Pension & Retirement System RSI - 2 Schedule of Proportionate Share of the Net Pension Liability Oklahoma Firefighters Pension & Retirement System RSI - 3 Schedule of Contributions Oklahoma Firefighters Pension & Retirement System RSI - 4 CITY OF OWASSO, OKLAHOMA ANNUAL COMPREHENSIVE FINANCIAL REPORT Year ended June 30, 2021 TABLE OF CONTENTS FINANCIAL SECTION (continued) Page Required Supplementary Information (continued) Notes to Required Supplementary Information Oklahoma Firefighters Pension & Retirement System RSI - 5 Schedule of Net Changes in Pension Liability Oklahoma Police Pension & Retirement System RSI - 6 Schedule of Proportionate Share of the Net Pension Liability (Asset) Oklahoma Police Pension & Retirement System RSI - 7 Schedule of Contributions Oklahoma Police Pension & Retirement System RSI - 8 Notes to Required Supplementary Information Oklahoma Police Pension & Retirement System RSI - 9 Schedule of Changes in Net Pension Liability Oklahoma Municipal Retirement Fund RSI - 10 Schedule of Net Pension Liability (Asset) and Related Ratios Oklahoma Municipal Retirement Fund RSI - 1 1 Schedule of Contributions Oklahoma Municipal Retirement Fund RSI - 12 Notes to Required Supplementary Information Oklahoma Municipal Retirement Fund RSI - 13 Notes to Required Supplementary Information - Budget Comparison RSI - 14 Schedule General Fund Budgetary Comparison Schedule Schedule of Revenues, Expenditures and Changes in Fund Balance RSI - 15 - RSI - 19 Reconciliation of the General Fund Balance Sheet to the Budgetary General Fund RSI - 20 Major Special Revenue Fund Budgetary Comparison Schedule: Major Special Revenue Fund Definitions RSI - 21 Half -Penny Sales Tax Fund Budgetary Comparison Schedule Schedule of Revenues, Expenditures and Changes in Fund Balance RSI - 22 Reconciliation of the Half -Penny Sales Tax Fund Balance Sheet to the Budgetary Half Penny Sales Tax Fund RSI - 23 Other Supplementary Information - Supplemental Combining and Individual Fund Financial Statements and Schedules Non -Major Governmental Funds Subsection: Nonmajor Governmental Funds Definitions OSI-1 Combining Balance Sheet OSI - 2 - OSI - 3 Combining Statement of Revenues, Expenditures and Changes in Fund Balance OSI - 4 - OSI - 5 Other Governmental Fund Budgetary Comparison Schedules: Schedule of Revenues, Expenditures and Changes in Fund Balance - Ambulance Service Fund OSI-6 Emergency 911 Fund OSI-7 Cemetery Care Fund OSI-8 Emergency Siren Fund OSI-9 CITY OF OWASSO, OKLAHOMA ANNUAL COMPREHENSIVE FINANCIAL REPORT Year ended June 30, 2021 TABLE OF CONTENTS FINANCIAL SECTION (continued) Page Other Supplementary Information - Supplemental Combining and Individual Fund Financial Statements and Schedules (continued) Juvenile Court Fund OSI-10 Hotel Tax Fund OSI-11 Stormwater Management Fund OSI-12 Ambulance Capital Fund OSI-13 Tax Incremental Financing Fund OSI-14 Park Development Fund OSI-15 Capital Projects Grant Fund OSI-16 Debt Service Fund OSI-17 Major Capital Project Fund Budgetary Comparison Schedules: Major Capital Project Fund Definitions OSI-18 Vision Recapture Tax Fund Budgetary Comparison Schedule Schedule of Revenues, Expenditures and Changes in Fund Balance OSI-19 Reconciliation of the Vision Recapture Tax Fund Balance Sheet to the Budgetary Vision Recapture Tax Fund OSI-20 Capital Improvement Fund Budgetary Comparison Schedule Schedule of Revenues, Expenditures and Changes in Fund Balance OSI-21 Reconciliation of the Capital Improvement Fund Balance Sheet to the Budgetary Capital Improvement Fund OSI-22 Internal Service Funds Internal Service Funds Definitions OSI-23 Combining Balance Sheet OSI-24 Combining Statement of Revenues, Expenditures and Changes in Net Position OSI-25 Combining Statement of Cash Flows OSI - 26 - OSI - 27 Budgetary Comparison Schedule City Garage Fund OSI-28 Budgetary Comparison Schedule Self- Insurance Funds OSI-29 STATISTICAL SECTION - UNAUDITED Statistical Section Definitions S_ 1 Financial Trends S-2-S-7 Revenue Capacity S-8-S- 12 Debt Capacity S- 13-S- 17 Demographic and Economic Information S- 18-S-23 Operating Information S-24-S-30 Appendix of Abbreviations S -31 INTRODUCTORY SECTION December 22, 2021 DEPARTMENT OF FINANCE 200 South Main Owasso, Oklahoma 74055 Honorable Mayor, City Council, and Citizens of the City of Owasso, Oklahoma: We are pleased to submit to you the A n n u a I Comprehensive Financial Report (the Report) of the City of Owasso, Oklahoma (the City) for the year ended June 30, 2021. The Report is provided to give full disclosure of the financial position and fiscal activities of the City and its Trust Authorities. City management is responsible for both the accuracy of the presented data and the completeness and fairness of presentations, including all disclosures. We believe the data, as presented, is accurate in all material respects and is presented in a manner which fairly sets forth the financial position and results of operations of the City. The Report has been prepared in accordance with accounting principles generally accepted in the United States (U.S. GAAP) based upon a comprehensive framework of internal control that it has established for this purpose. The objective of a system of internal controls is to provide reasonable, rather than absolute, assurance that the financial statements are free of any material misstatements. Under Oklahoma state law, municipalities are required to publish a complete set of audited financial statements. This report fulfills that requirement for the year ended June 30, 2021. To the best of our knowledge and belief, the enclosed report is accurate in all material respects and is organized in a manner designed to fairly present the financial position and results of operations of the City as measured by the financial activity of its various funds. The accompanying disclosures are necessary to enable the reader to gain the maximum understanding of the City's financial affairs. INDEPENDENT AUDITORS' REPORT The basic financial statements and related notes have been audited by the independent firm of Certified Public Accountants, BT &Co., P.A. After examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation, the independent firm concluded that there was a reasonable basis to render an unmodified opinion on the financial statements of each opinion unit that collectively comprise the City's basic financial statements, concluding that the basic financial statements are fairly presented in conformity with the accounting principles generally accepted in the United States of America (U.S. GAAP). The independent auditors' report can be found on the pages prior to the MD &A in the Financial Section of this report. Grant awards did meet the threshold required for audit under the provisions of the Single Audit Act of 1996, as amended in the OMB Uniform Guidance. Information related to this single audit is included in a separately issued single audit report. The single audit report can be found at https: / /www.cityofowasso.com /304 /Finance. Page i MANAGEMENT'S DISCUSSION AND ANALYSIS (MD&A) Management's discussion and analysis immediately follows the independent auditors' report and provides a narrative introduction, overview, and analysis of the basic financial statements. MD &A complements this letter of transmittal and should be read in conjunction with it. PROFILE OF THE CITY OF OWASSO The City of Owasso is located approximately 15 miles northeast of Tulsa, Oklahoma. The northeastern part of Oklahoma is often called "Green Country" due to its wooded terrain in the rolling Ozark foothills. It has an elevation of 700 feet above sea level. The average daily temperature is 61 degrees and the average annual rainfall is 39 inches. With its temperate climate, the City experiences all four seasons of the year. The City of Owasso is known as the "City of Character." Each month a positive character trait is displayed on banners in the community and is presented and discussed at City Council, City staff meetings, and various community meetings. The City was originally settled in 1881 in Indian Territory, incorporated in 1904 and was chartered as a city in 1972. Owasso's population is projected, based on the Census, to be 38,240 people in 2020 -21, representing a 0.5270 increase over 2020. Owasso's municipal boundaries contain portions of Tulsa and Rogers Counties, with approximately 9070 of the City's population residing in Tulsa County. Under a Council- Manager form of government, the City Manager, serving as the chief executive of the City, is responsible for City operations. The City Council, the legislative branch of the government, consists of five members with a three -year elected term. Per City Ordinance No. 1015, Owasso has established five City Council Ward boundaries as required by State Statute in Title 11 Section 20 -101. All five Council members are elected at large. Each Council member has an opportunity to be elected by Council vote as Mayor or Vice -Mayor for a two -year term. MISSION, VISION, VALUES Public service is about removing the obstacles standing in the way of people celebrating their lives. To achieve this, we must provide quality services that better the lives of the citizens of Owasso. Our vision is to create a community where governmental services are dependable, efficient, and provided with excellence; where public servants are empowered to remove obstacles for citizens; and where departments are interdependent, united in a common purpose, creative, responsible, committed to positive change, focused on results, responsive to needs, and passionate about the individual's role to make a difference. Our core values are creativity, accountability, responsiveness, teamwork, integrity, respectfulness, and excellence. Page ii SERVICES The City provides a full range of basic municipal services, including police and fire protection, ambulance service, street construction, parks, neighborhood revitalization, land use regulation, and other infrastructure, recreational activities, and cultural events. The following services are provided through an array of legally separate entities incorporated into this report as component units: Service Water, sewer, and refuse Golf Economic Development BUDGETARY PROCESS AND CONTROLS Enterprise Fund Owasso Public Works Authority Owasso Public Golf Authority Owasso Economic Development Authority The City Manager prepares the annual proposed budget and presents it by June 1st to the City Council. The Council reviews, refines, changes, and adopts it according to the policies and priorities it wishes to see implemented. Governmental funds with legal annually appropriated budgets are as follows: General Fund Special Revenue Funds: Half -Penny Sales Tax Fund Ambulance Service Fund E -911 Fund Cemetery Care Fund Emergency Siren Fund Juvenile Court Fund Hotel Tax Fund Stormwater Management Fund Capital Proiect Funds: Vision Recapture Tax Fund Capital Improvement Fund Ambulance Capital Fund Tax Incremental Financing Fund Park Development Fund Capital Projects Grant Fund Debt Service Fund: Sinking Fund The City maintains a system of budgetary controls with the objective of maintaining compliance with the City Charter and the Oklahoma Municipal Budget Act. The legal level of budgetary control is the level at which expenditures cannot exceed appropriations. The level of control is by department within a fund. Expenditure categories are personal services, materials and supplies, other services, debt service, and capital outlay. Expenditures are cash outlays plus encumbrances. Encumbrances not liquidated within 90 days of year -end are closed and re- appropriated by Council for the following year and are classified as assigned fund balance in the General fund. THE LOCAL ECONOMY AND FACTORS AFFECTING ECONOMIC CONDITIONS Revenue Outlook Sales and Use tax collections for FY 2020 -21 increased by $4 million or 107o totaling $43.8 million compared to $39.8 million in FY 2019 -20. In spite of the COVID -19 pandemic, combined, sales and use tax revenues exceeded prior two years in every month. The FY 2020 -21 increase is primarily attributable to a growing community, large retailers who remained open during the Page iii pandemic who attracted shoppers from surrounding communities, and increased collections related to online sales. Owasso's economic outlook is positive based on the following: • 8.47o year -to -date FY 2021 -22 growth in retail sales and use tax • 1 T projected population growth • 3.57o Unemployment - -below state and national average • Increases in building permits The City is expected to consistently rise and outpace both the state and Tulsa region on most economic measures throughout 2021 -22. Water rates were increased according to the five -year plan approved by Council in 2016. Consistent, planned increases were needed to fund increased labor and material costs and planned debt service for upgrades to the wastewater treatment plan, Coffee Creek Lift Station, Smith Farm gravity sewer line, and the Ranch Creek sewer interceptor. The City of Owasso leadership, staff, and Economic Development team have prepared a strategic plan that will take our City far into the future. The City seeks to lay the foundation for a future in which Owasso attracts both residents and jobs, encourages sustainable living practices, and provides an array of amenities to those who live and work in the area. Community Outlook: Owasso's retail sector is among the strongest in the state. The current outlook suggests that Owasso's taxable retail sales and use taxes will grow 67o -1 1 T in 2021 -22. Owasso's population continues to grow at a more modest growth rate. Double digit growth of recent years is not expected to return due to a decline in available undeveloped land within City limits. However, new developments in the county continue to contribute to growth in sales tax collections for Owasso. A ninth hotel opened early in fiscal year FY 2019 -20. FY 2020 -21 Hotel tax revenues increased 57o over FY 2019 -20 but were down 47o from FY 2018 -2019 due to the pandemic. However, year -to -date FY 2021 -22 collections are at a record high. Owasso is not considered a tourist destination and thus has not been as affected by the pandemic as many larger cities. Also, Owasso has a number of significant street, stormwater, and wastewater projects in process which draw out of the area construction crews who require local lodging. There were 203 residential permits issued in fiscal year 2020 -21 with a total construction value of $27 million. With residential building permits at a five -year high, the outlook for local construction is positive. There were 12 commercial permits issued in fiscal year 2020 -21 with a total construction value of $24.5 million. Year -to -date 2020 -21 commercial permits are at a five -year high. Jobs located within Owasso grew 36.270 from 2010 to 2020. Employed Owasso residents, many of which work outside the City, increased 33.770 over the same period. In comparison, the gain in employment for the Tulsa metro area was 5.770 across the decade. P age iv DEBT The City of Owasso has no outstanding General Obligation debt and, therefore, has not been bond rated in recent years. All current financing has been provided via the Owasso Public Works Authority. LONG -TERM FINANCIAL PLANNING The City utilizes a five -year Capital Improvement Program (CIP) and utilizes a citizen - involved CIP committee who makes recommendations to Council on funding priorities. CAPITAL IMPROVEMENTS PLAN (CIP) The Capital Improvement Committee was established in 1988 under Ordinance No. 395. The purpose of the committee is to develop, prioritize, and recommend the capital improvement needs of the City, creating a more planned process than had existed before it was established. Since that time, the City has developed and adopted several infrastructure master plans that help provide insight into the present and future needs of the City. The committee is comprised of 2 City Council members; 1 Owasso Economic Development Authority representative; 1 Planning Commissioner; 6 citizens at large; the City Manager; the Assistant City Manager; and the Finance Director. The Committee meets quarterly to discuss and plan for the City's capital needs primarily in Streets, Water, Sewer, Stormwater, Facilities, and Parks. However, capital needs extend beyond infrastructure and may include large equipment purchases that exceed the City's ability to provide through General and Half -Penny Funds revenues. The process of adding projects to the list eligible for capital improvement funding is as follows (established by Resolution 2003 -14): Recommendation approved by the Capital Improvement Committee Public Hearing at Owasso City Council Meeting Consideration and action by the Owasso City Council (at least 2 weeks following the public hearing) Additional information on history and process can be found at htto: / /citvofowasso.com /DocumentCen ter /View/ 1045 Current list of projects eligible for Capital Improvement funds http:// weblink. cityofowasso.com /WebLink8 /0 /doc /189147 /Pagel .aspx FINANCIAL POLICIES The City has established an operating reserve in the General Fund to provide for revenue shortfalls or to meet unexpected increases in service delivery costs. Because the Half -Penny Sales Tax fund, approved in 2015, is also utilized for operational activities such as Police and Fire, the Council now targets combined General and Half -Penny Sales Tax funds' reserves to be between 1070 and 1570 of their combined revenues. For 2020 -21, Council set the budgeted combined ending reserves at 3370 of the General Fund and Half -Penny Sales Tax appropriated revenues net of sales tax transfers to the Owasso Public Works Authority. Reserves were intentionally budgeted above the normal target to allow for unexpected revenue losses related to the pandemic. Page v By City Ordinance, utility rates are evaluated and updated annually to ensure long -term viability. The City of Owasso's investment policy is to invest its funds in a manner which will provide the highest investment return with the maximum security while meeting the daily cash flow needs of the City and comply with all state statutes governing the investment of public funds. The following investments are authorized by policy: • Obligations of the United States government, its agencies and instrumentalities; • Collateralized or insured certificates of deposit and other evidences of deposit at banks, savings banks, savings and loan associations and credit unions located in this state, or fully insured certificates of deposit at banks, savings banks, savings and loan associations and credit unions located out of state; • Negotiable certificates of deposit issued by a nationally or state - chartered bank, a savings bank, a savings and loan association or a state - licensed branch of a foreign bank. Purchases of negotiable certificates of deposit shall not exceed ten percent (10 %) of the surplus funds of the city or county which may be invested pursuant to this section. • Prime bankers' acceptances which are eligible for purchase by the Federal Reserve System and which do not exceed 270 days' maturity. • 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. • Repurchase agreements that have underlying collateral consisting of those items specified in paragraphs a through e of this subsection; and • Money market mutual funds regulated by the Securities and Exchange Commission and which investments consist of those items and those restrictions specified in paragraphs a through f of this subsection. MAJOR TAX REVENUES The City of Owasso collects a 2% sales tax for general operations. Pursuant to Ordinance No. 763, the City levies a 1% sales tax for the purpose of providing revenues to finance or fund capital projects and related costs to include debt service on obligations issued to finance capital projects. In January 2015, citizens of Owasso voted to increase the 3% sales tax to 3.50% effective April 1, 2015. The additional half penny is restricted by Ordinance to spending on police, fire, and street functions and is recorded as revenue within the Half -Penny Sales Tax Fund. In January 2016, the City of Owasso voters also approved an increase in sales tax from 3.5% to 4.05% effective for seven years starting January 2017. The 0.55% increase is to be used exclusively for street improvements. This increase occurred at the same time a 0.6% Vision 2025 Tulsa County sales tax expired. P age vi The City has for many years utilized sales tax rebates to incentivize major retailers to locate in Owasso. Asa result of the increases in retail property, Owasso's sales tax revenues have been steadily growing. Ad Valorem taxes are assessed and collected to fund judgments of $25,000 or more. This is not a significant source of revenue for the City. The City created a Redbud District (Tax Increment Financing District) to spur downtown revitalization /development. Beginning December 20, 2016, ad valorem taxes levied by other taxing jurisdictions have be apportioned to the City as related to increases in assessed valuation after that date within the TIF District. Property taxes related to the TIF District are not yet a significant tax source. In addition to the property taxes, TIF revenues are also comprised of 27o sales tax on businesses locating within the TIF District subsequent to the December 20, 2016, creation date. The City also collects a 27o Franchise tax on utilities, a 57o hotel tax, and state - shared revenues taxed on telephones, alcoholic beverages, tobacco, and gasoline. AWARDS AND ACKNOWLEDGEMENTS 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 Owasso for its Annual Comprehensive Financial Report for the fiscal year ended June 30, 2020. This was the 5th consecutive year that the City of Owasso has achieved this prestigious award. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized Annual Comprehensive Financial Report. This report must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe that our current Annual Comprehensive Financial Report continues to meet the Certificate of Achievement Program's requirements, and we are submitting it to GFOA to determine its eligibility for another certificate. The preparation of this report could not have been accomplished without the dedicated services of the entire staff of the Finance Department. Other departments and offices of the City have also contributed directly or indirectly to the preparation of this report. We would like to express our appreciation to all who assisted in this effort. We express our appreciation and acknowledge the thorough, professional, and timely manner in which our independent auditor, BT &Co., P.A., conducted the audit. Finally, we acknowledge the City Council who has consistently supported the City's goal of excellence in all aspects of financial management. Their support is greatly appreciated. 5 L Linda Jones -Holt, Jennifer Newman, Director of Finance Assistant Director of Finance Page vii Governnient Finance Officers Association Certificate of Achievement for Excellence in Financial, Reporting Presented to City of Owasso Oklahoma For its Comprehensive Annual Financial Report For the Fiscal Year Ended June 30, 2020 Executive Director/ CEO Page viii CITY OF OWASSO, OKLAHOMA LIST OF PRINCIPAL OFFICIALS June 30, 2021 CITY COUNCIL MEMBERS Bill Bush, Mayor Kelly Lewis, Vice Mayor Alvin Fruga Lyndell Dunn Doug Bonebrake CITY MANAGER Warren Lehr ASSISTANT CITY MANAGER Chris Garrett DIRECTOR OF FINANCE Linda Jones -Holt ASSISTANT DIRECTOR OF FINANCE Jennifer Newman Page ix ORGANIZATION CHART Administrative Support City Clerk Community Development Citizens of Owasso Economic Development Finance Court City of Owasso City Council Fire /EMS Services City Attorney / General Counsel Human Resources City Manager InformationStrong Technology Neighborhoods Police Service Assistant City Public Works Manager Recreation & Culture: Community Center, Golf, Museum, Parks Support Services Page x FINANCIAL SECTION INDEPENDENT AUDITORS' REPORT The Honorable Mayor and Members of the City Council City of Owasso, Oklahoma Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, the business -type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of the City of Owasso, Oklahoma (the City), as of and for the year ended June 30, 2021, 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. Auditors' 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 Government 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 auditors' 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. Page A An IndepoidentlyOuvwd member, PSM US Alliance 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 discretely presented component unit, each major fund, and the aggregate remaining fund information of the City, as of June 30, 2021, 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. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the Management's Discussion and Analysis and the required supplementary information 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. Supplementary and 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 combining nonmajor fund financial statements and schedules, and the introductory and statistical sections are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining nonmajor fund financial statements and schedules are the responsibility of management and were 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 accompanying 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. Page B -2- Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 22, 2021 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 solely 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 the effectiveness of the City's 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. December 22, 2021 Topeka, Kansas -3- T Page C Management's Discussion and Analysis City of Owasso, Oklahoma June 30, 2021 Our discussion and analysis of the City of Owasso's financial performance provides an overview of the City's financial activities for the fiscal year ended June 30, 2021. Please read it in conjunction with the City's financial statements, which follow this section. FINANCIAL AND ACTIVITY HIGHLIGHTS • For the fiscal year ended June 30, 2021, the City's total net position increased by $18.8 million or 8.770 from the prior year. This was due primarily to the increase in operating grants, and increased sales and use tax revenues resulting from a growing community and new retailers. • During the year, the City's expenses for governmental activities totaled $41.4 million and were funded by program revenues of $12.5 million and further funded with taxes and other general revenues (net of transfers) that totaled $42 million. • Total program revenues in the City's business -type activities exceeded expenses by approximately $0.9 million. This increase in net position was due primarily to increased usage rates and capital grants. The trust authority recognized the need to increase revenues to eliminate the operating loss and adopted a rate structure with 57o to 67o annual rate increases for five -years beginning October 01, 2016. The five -year plan successfully enabled the City to address operating deficits in utility operations. In April 2021, the City approved utility rate increases for an additional five years to fund needed infrastructure improvements to serve a growing population. • At June 30, 2021, the General Fund reported a total fund balance of $15.5 million, an increase of $4.8 million, or 4570 from the prior year due to conservative budgeting of sales and use tax revenues and federal grant awards. • For budgetary reporting purposes, the General Fund reported total resources equal to 106.47o of budget, and expenditures which were 95.67o of budget. OVERVIEW OF THE FINANCIAL STATEMENTS The financial statements presented herein include all of the activities of the City of Owasso (the "City ") and its component units using the integrated approach as prescribed by GASB Statement No. 34. Included in this report are government -wide statements for three categories of activities -- governmental, business type, and discretely presented component units. The government -wide financial statements present the complete financial picture of the City from the economic resources management 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) as well as all liabilities (including all long -term debt.) 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 and liabilities using the accrual basis of accounting. All of the current year's revenues and expenses are taken into account regardless of when cash is received or paid. MDA Page 1 Management's Discussion and Analysis City of Owasso, Oklahoma June 30, 2021 REPORTING THE CITY AS A WHOLE -- Continued The Statement of Net Position and the Statement of Activities -- Continued These two government -wide statements report the City's net position and changes in net position from the prior year. You can think of the City's net position (the difference between assets, deferred outflows of resources, liabilities, and deferred inflows of resources) as one way to measure the City's financial condition, or position. 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 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 water, wastewater, sanitation, and golf course activities are reported here. Discretely - presented component units - These account for the activities of the City's reporting entity that do not meet the criteria for blending. The activities of the Owasso Economic Development Authority are presented here. The financial Statements also include notes that explain some of the information in the statements and provide more detailed data. MDA Page 2 Management's Discussion and Analysis City of Owasso, Oklahoma June 30, 2021 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. Governmental funds - Most of the City's basic services are reported in governmental funds. Governmental fund financial statements are prepared on the modified accrual basis. Under the modified accrual basis, revenues are recognized when they become measurable and available, and expenditures are recognized when the related fund liability is incurred, with the exception of long -term debt and other similar items which are recorded when due. 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. The differences of results in the Governmental Fund financial statements to those in the Government -Wide financial statements are explained in a reconciliation following each Governmental Fund financial statement. 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 and the Statement of Revenues, Expenses and Changes in Net Position. In fact, the City's enterprise funds are 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 other parties. The City is responsible for ensuring that the assets to be reported in these funds are used for their intended purpose. The City does not have any fiduciary activities in FY 2019 -20 or FY 2020 -21. A FINANCIAL ANALYSIS OF THE CITY AS A WHOLE NET POSITION The City's combined net position increased from $216.1 million to $235.0 million between fiscal years 2019 -20 and 2020 -21. Looking at the net position of governmental and business -type activities separately, governmental activities increased $13 million primarily due to growing sales and use taxes, public safety grants, and delays in capital spending for street improvements due to COVID -19. The net position for Business -type activities increased by $5.8 million primarily due to City transfers to the Trust Authority to eliminate the golf authority deficit. For FY 2020 -21, the Business -type Activities show a negative unrestricted net position due to debt issued for Governmental capital assets, primarily street improvements and public safety facilities. MDA Page 3 Management's Discussion and Analysis City of Owasso, Oklahoma June 30, 2021 NET POSITION -- Continued A comparative, condensed presentation of net position follows (reported in thousands). A significant portion of net position consists of net investment in capital assets, e.g., land, building, improvements, equipment (net of related debt) and, as such, is not available for future spending. The increase in Governmental Activities net investment in capital assets is largely due to street improvements. MDA Page 4 Total Governmental Business -Type Percentage Activities Activities Total Change 2020 2021 2020 2021 2020 2021 2020 -2021 Current and other assets $ 45,605 $ 51,593 $ 43,364 $ 43,376 $ 88,969 $ 94,969 6.7% Capital assets, net 162,940 169,642 66,090 67,841 229,030 237,483 3.7% Total assets $ 208,545 $ 221,235 $ 109,454 $ 111,217 $ 317,999 $ 332,452 4.5% Deferred outflows of resources $ 6,814 $ 9,193 $ 475 $ 666 $ 7,289 $ 9,859 35.3% Long -term debt outstanding $ 20,499 $ 25,698 $ 79,100 $ 74,029 $ 99,599 $ 99,727 0.1% Other liabilities 4,660 2,685 1,841 3,074 6,501 5,759 -11.47o Total liabilities $ 25,159 $ 28,383 $ 80,941 $ 77,103 $ 106,100 $ 105,486 -0.6% Deferred inflows of resources 2,771 $ 1,581 $ 276 $ 273 $ 3,047 $ 1,854 -39.27o Net position Net investment in capital assets $ 162,940 $ 169,642 $ 50,943 $ 52,758 $ 187,486 $ 195,794 4.4% Restricted 22,256 25,583 1,097 1,387 23,353 26,183 12.1% Unrestricted 2,233 5,239 (21328) 19,638 5,302 12,994 145.1% Total net position $ 187,429 $ 200,464 $ 28,712 $ 34,507 $ 216,141 $ 234,971 8.7% A significant portion of net position consists of net investment in capital assets, e.g., land, building, improvements, equipment (net of related debt) and, as such, is not available for future spending. The increase in Governmental Activities net investment in capital assets is largely due to street improvements. MDA Page 4 Management's Discussion and Analysis City of Owasso, Oklahoma June 30, 2021 CHANGES IN NET POSITION For the year ended June 30, 2021, the change in net position of the primary government (reported in thousands) is shown below. Note that the increase to the net position of Governmental Activities is primarily due to public safety grant funding and conservative budgeting of sales and use taxes. Sales and Use taxes increased substantially during the pandemic partially due to increased home improvement projects and outdoor sports and leisure spending instead of typical vacation travel outside the region. The increase in Governmental expenses is primarily due to increases in negotiated salaries and benefits. The decrease in Business -Type Activities expense is primarily due to less needed spending on repair and maintenance. MDA Page 5 Total Governmental Business -Type Percentage Activities Activities Total Change 2020 2021 2020 2021 2020 2021 2020 -2021 EXPENSES General government $ 4,785 $ 4,834 $ 4,785 $ 4,834 1.0% Public safety 22,805 24,915 22,805 24,915 9.3% Community development 752 842 752 842 12.0% Recreation and culture 1,882 1,901 1,882 1,901 1.0% Economic development 476 471 476 471 -1.1% Public works 7,645 8,482 7,645 8,482 10.9% Water 7,909 7,106 7,909 7,106 -10.2% Wastewater 5,533 5,416 5,533 5,416 -2.1% Sanitation 1,938 1,921 1,938 1,921 -0.9% Recycle center 233 293 233 293 25.8% Economic development 308 359 308 359 16.6% Golf 1,517 1,526 1,517 1,526 0.67o TOTAL EXPENSES 38,345 41,445 17,438 16,621 55,783 58,066 4.1% PROGRAM REVENUES Charges for services 5,273 5,493 14,938 17,074 20,211 22,567 11.7% Operating grants and contributions 3,587 6,196 3,587 6,196 72.7% Capital grants and contributions 2,915 799 2,107 405 5,022 1,204 -76.017o Tota I progra m reven u es 11,775 12,488 17,045 17,479 28,820 29,967 4.017o NET REVENUES (EXPENSES) (26,570) (28,957) 393 858 (26,963) (28,099) 4.2% General revenues Sales taxes 36,600 39,586 36,600 39,586 8.2% Use taxes 3,175 4,239 3,175 4,239 33.5% Franchise and public service taxes 1,179 1,110 1,179 1,110 -5.9% Hotel taxes 430 467 430 467 8.6% Intergovernmental 723 772 723 772 6.8% Investment income 468 174 353 34 821 208 -74.7% Miscellaneous 467 547 467 547 17.1% TOTAL GENERAL REVENUES 43,042 46,895 353 34 43,395 46,929 8.1% Changes before transfers 16,472 17,938 (40) 892 16,432 18,830 14.6% Transfers (870) (4,903) 870 4,903 0.017o CHANGE IN NET POSITION 15,602 13,035 830 5,795 16,432 18,830 14.6% NET POSITION, BEGINNING 171,827 187,429 27,882 28,712 199,709 216,141 8.2% NET POSITION, ENDING $ 187,429 $ 200,464 $ 28,712 $ 34,507 $ 216,141 $ 234,971 8.7% MDA Page 5 Management's Discussion and Analysis City of Owasso, Oklahoma June 30, 2021 Governmental Fund Balances General Fund - The fund balance increase is primarily due to sales and use tax collections exceeding budgets due to conservative budgeting of revenues, and federal public safety grants. Vision Recapture Tax Fund - Sales tax revenues of 0.5570 began in this fund on January 1, 2017. Revenues are restricted to street projects. Currently, many projects to be funded by the Vision Recapture sales tax are in design and rights -of -way purchases, resulting in an accumulation of fund balance until projects are ready to begin construction. Half -Penny Sales Tax Fund - In January 2015, citizens of Owasso voted to increase the 37o sales tax to 3.5070 effective April 1, 2015. The additional half penny is restricted by Ordinance to spending on police, fire, and street functions and is recorded as revenue within the Half -Penny Sales Tax Fund. The decrease in fund balance is primarily due to negotiated increases to public safety salary and benefits. Capital Improvements Fund - Funding for the Capital Improvements Fund comes from a ITo sales tax restricted for capital expenditures. The $2 million increase in fund balance is primarily due to delays in capital street projects due to the pandemic. Other Governmental Funds - Fund balance is entirely comprised of restricted and committed funds and remained flat over prior year. Governmental Fund Balances (Reported in Thousands) As of June 30 Year End Governmental Funds 2020 General $ 10,697 Vision Recapture Tax 9,899 Half -Penny Sales Tax 6,814 Capital Improvements 3,996 Other Governmental 5,860 Total Governmental Fund 2,016 Balances $ 37,266 Major Fund Budgetary Statement Highlights General Fund - The original FY 2020 -21 budget included a 1.270 decrease in tax revenues. Actual tax revenues came in above the original budget by 14.570. The sales tax revenue and transfer budgets were revised mid -year to reflect the additional sales tax revenue. MDA Page 6 Change in Fund 2021 Balance $ 15,491 $ 4,794 10,817 918 6,528 (286) 6,012 2,016 5,860 $ 44,708 $ 7,442 General Fund - The original FY 2020 -21 budget included a 1.270 decrease in tax revenues. Actual tax revenues came in above the original budget by 14.570. The sales tax revenue and transfer budgets were revised mid -year to reflect the additional sales tax revenue. MDA Page 6 Management's Discussion and Analysis City of Owasso, Oklahoma June 30, 2021 Major Fund Budgetary Statement Highlights -- Continued Grant and other governmental revenue budgets were also revised as new grants were awarded. Approximately $2.7 million in public safety grants (awarded after the budget was adopted) are reflected in the Final budget. Also, approximately $250,000 in grant revenues, awarded in FY 2019 -20 but not received by the end of the fiscal year, were re- budgeted in FY 2020 -21 and reflected in the Final budget. Court fines and costs were under budget largely due to suspension of court due to the COVID -19 pandemic. Court fines were also down due to a Supreme Court decision transferring Native American prosecution to the respective tribe. The June 30, 2021, General Fund year -end fund balance was 3970 of annual revenues, net of transfers to the Owasso Public Works Authority (OPWA). GOVERNMENTAL ACTIVITIES To aid in the understanding of the Statement of Activities on page 2 of the Basic Financial Statements, some additional explanation is given. Of particular interest is the format that is significantly different from a typical Statement of Revenues, Expenditures, 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 that all taxes are classified as general revenue even if restricted for a specific purpose. MDA Page 7 Management's Discussion and Analysis City of Owasso, Oklahoma June 30, 2021 GOVERNMENTAL ACTIVITIES -- Continued For the year ended June 30, 2021, the City's governmental activities revenues were funded as follows: Governmental Activities Sources For the year ended June 30, 2021, expenses for governmental activities totaled $41.4 million, an increase from prior year of $3.1 million. Governmental transfers to business -type activities totaled $4.9 million primarily due to a General fund transfer to subsidize the Golf Course and eliminate its deficit fund balance and the transfer of sales tax revenue pledged for debt service for debt issued by the Owasso Public Works Authority to finance City capital projects. Of the total expenses, taxpayers and other general revenues funded $42.0 million. Grants and other contributions that directly benefited programs funded $7.0 million, and charges for services totaled $5.5 million. MDA Page 8 Management's Discussion and Analysis City of Owasso, Oklahoma June 30, 2021 GOVERNMENTAL ACTIVITIES -- Continued GOVERNMENTAL ACTIVITIES SOURCES AND USES BUSINESS -TYPE ACTIVITIES Net Revenue (Expense) of Business -Type Activities for the year ended June 30, 2021 was as follows: BUSINESS -TYPE ACTIVITIES SOURCES AND USES Charges for Services, Net Revenue Capital and Total Expense (Expense) Operating Grants of Services of Services General government $ 632,579 $ 4,833,848 $ (4,201,269) Public safety 8,548,621 24,915,335 (16,366,714) Community development 342,725 841,560 (498,835) Recreation and culture 179,170 1,901,415 (1,722,245) Economic development 14,622 470,509 (455,887) Public works 2,770,501 8,482,189 (5,711,688) TOTAL $ 12,488,218 $ 41,444,856 $ (28,956,638) BUSINESS -TYPE ACTIVITIES Net Revenue (Expense) of Business -Type Activities for the year ended June 30, 2021 was as follows: BUSINESS -TYPE ACTIVITIES SOURCES AND USES In reviewing the business -type activities net revenue (expense) from operations, it should be noted that total water, wastewater, sanitation, and recycling activities reported a combined net gain of $1.9 million for the year ended June 30, 2021 compared to a $0.6 million net gain in FY 2019 -20. It is important to note that Council adopted a five -year rate increase plan in 2016 (increasing rates 57o -67o per year) designed to bring these functions into a positive net revenue position and to fund needed wastewater capital projects. MDA Page 9 Charges for Services, Net Revenue Capital and Total Expense (Expense) Operating Grants of Services of Services Water $ 7,911,823 $ 7,105,922 $ 805,901 Wastewater 6,141,195 5,415,957 725,238 Sanitation 2,591,673 1,921,089 670,584 Recycle center 32,749 293,280 (260,531) Economic development 358,874 (358,874) Golf 801,395 1,526,501 (725,106) TOTAL $ 17,478,835 $ 16,621,623 $ 857,212 In reviewing the business -type activities net revenue (expense) from operations, it should be noted that total water, wastewater, sanitation, and recycling activities reported a combined net gain of $1.9 million for the year ended June 30, 2021 compared to a $0.6 million net gain in FY 2019 -20. It is important to note that Council adopted a five -year rate increase plan in 2016 (increasing rates 57o -67o per year) designed to bring these functions into a positive net revenue position and to fund needed wastewater capital projects. MDA Page 9 Management's Discussion and Analysis City of Owasso, Oklahoma June 30, 2021 CAPITAL ASSETS AND DEBT ADMINISTRATION Capital Assets At the end of June 30, 2021, the City had $237 million invested in capital assets, net of depreciation (See table below). This represents a net increase of $8.5 million or 3.770 over last year. Significant capital assets added this year include construction in progress on the Sports Park Detention Pond of $2.8 million, final renovation of the golf course greens of $0.8 million, and construction in progress on various street projects of $8.7 million, as well as machinery and equipment of $1.8 million and contributed capital of $0.6 million. City of Owasso Capital Assets (Net of accumulated depreciation) Governmental Business -Type Activities Activities Total Land $ 18,884,266 $ 18,749,066 $ 322,519 $ 322,519 $ 19,206,785 $ 19,071,585 Buildings 22,600,123 21,423,472 849,284 804,490 23,449,407 22,227,962 Improvements 20,076,148 19,046,808 1,398,379 1,399,254 21,474,527 20,446,062 Utilities 60,087,199 58,189,716 60,087,199 58,189,716 Machinery & Equipment 6,329,523 6,728,042 1,862,158 3,033,787 8,191,681 9,761,829 Infrastructure 67,324,514 64,895,637 67,324,514 64,895,637 Construction in Progress 27,725,024 38,799,522 1,570,655 4,091,548 29,295,679 42,891,070 Totals $ 162,939,598 $ 169,642,547 $ 66,090,194 $ 67,841,314 $ 229,029,792 $ 237,483,861 See Note 3.D to the financial statements for more detail on the City's capital assets and changes therein. Long -Term Debt At year -end, the City had $99.7 million in long -term liabilities which represents a $0.13 million, or 0.1 To increase from the prior year. The largest increase was attributed to the $5.6 million increase in net pension liability. Because no new debt was issued during the fiscal year, normal debt service payments resulted in a $5.6 million decrease in notes payable, net. MDA Page 10 Management's Discussion and Analysis City of Owasso, Oklahoma June 30, 2021 Long -Term Debt -- Continued The City's long -term debt by type of debt is as follows: Total Governmental Business -Type Percentage Activities Activities Total Change 2020 2021 2020 2021 2020 2021 2020 -2021 Accrued absences $ 2,196,003 $ 2,365,186 $ 158,441 $ 178,157 $ 2,354,444 $ 2,543,343 8.0% Total OPEB liability 1,626,551 1,646,541 350,760 360,303 1,977,311 2,006,844 1.5% Claims liability 1,069,600 761,459 155,741 1,069,600 917,200 -14.2% Net pension liability 15,606,901 20,924,427 454,962 761,237 16,061,863 21,685,664 35.0% Capital lease 271,881 218,529 271,881 218,529 -19.6% Deposits subject to refund 735,631 786,676 735,631 786,676 6.9% Notes payable, net 39,573,089 38,288,442 39,573,089 38,288,442 -3.2% Revenue notes payable 37,555,000 33,280,000 37,555,000 33,280,000 -11.4% TOTALS $ 20,499,055 $ 25,697,613 $ 79,099,764 $ 74,029,085 $ 99,598,819 $ 99,726,698 0.1 See Note 3.E. to the financial statements for more detailed information on the City's long -term debt and changes therein. NEXT YEAR'S BUDGET AND RATES The budget for fiscal year 2021 -2022 was adopted by the City of Owasso City Council on June 15, 2021 and went into effect on July 1, 2021. The adopted budget conservatively included a 570 decrease in tax collections to prepare for any negative impact of the pandemic. Rather than declining, year -to -date FY 2021 -22 combined sales and use tax collections are 87o higher than FY 2020 -21. The FY 2021 -22 budget also included step increases for all union employees, as well as, cost of living increases and potential merit increases for civilian staff. The budget further includes a $1 million transfer to the Owasso Public Golf Authority from the General Fund for the purpose of subsidizing operations. While General fund budgetary information is included in this report, persons interested in more in -depth budgetary information can find the full budget document at www.citvofowasso.com /304 /finance. CONTACTING THE CITY'S FINANCIAL MANAGEMENT This financial report is designed to provide our citizens, taxpayers, customers and creditors a general overview of the City's finances and show the City's accountability for the money it receives. If you have questions about this report or need additional financial information, contact the Finance Director's office at 200 S. Main, P. O. Box 180, Owasso, Oklahoma 74055 -0180 or phone (918) 376 -1500. MDA Page 11 � U,&,K.O FINANCIAL STATEMENTS STATEMENT OF NET POSITION CITY OF OWASSO, OKLAHOMA June 30,2021 LIABILITIES Accounts payable Accrued payroll liabilities Accrued interest payable Retainage payable Unearned revenues Other liabilities Long -term liabilities, including net pension liability: Due within one year Due in more than one year TOTAL LIABILITIES 1,599,780 2,255,659 3,855,439 614,610 Component 729,865 - Primary Government 409,145 Unit 178,857 575,293 28,093 19 Economic 46,696 Governmental Business -Type 1,484,752 Development 7,784,500 Activities Activities Total Authority ASS ETS 105,486,140 1,700,252 9,439 Capital projects 16,828,641 Cash and cash equivalents $ 40,059,554 $ 7,828,073 $ 47,887,627 $ 9,439 Restricted cash - 32,469,142 32,469,142 - Investments 3,828,713 892,652 4,721,365 Accounts receivable, net of allowance 1,060,899 1,749,150 2,810,049 Court fine receivable, net of allowance 20,885 - 20,885 Other receivables 145,131 9,613 154,744 Internal balances (348,544) 348,544 - Due from other governments 6,283,627 - 6,283,627 Prepaid items 84,075 7,923 91,998 Inventory - 70,343 70,343 Land held for resale 458,280 - 458,280 Capital assets: Land and construction in progress 57,548,588 4,414,067 61,962,655 Other capital assets, net of depreciation 112,093,959 63,427,247 175,521,206 TOTAL ASSETS 221,235,167 111,216,754 332,451,921 9,439 DEFERRED OUTFLOWS OF RESOURCES Deferred outflows - OPEB 112,101 23,684 135,785 - Deferred outflows - pension 9,081,494 642,709 9,724,203 TOTAL DEFERRED OUTFLOWS OF RESOURCES 9,193,595 666,393 9,859,988 LIABILITIES Accounts payable Accrued payroll liabilities Accrued interest payable Retainage payable Unearned revenues Other liabilities Long -term liabilities, including net pension liability: Due within one year Due in more than one year TOTAL LIABILITIES 1,599,780 2,255,659 3,855,439 614,610 115,255 729,865 - 409,145 409,145 396,436 178,857 575,293 28,093 19 28,112 46,696 114,892 161,588 1,484,752 6,299,748 7,784,500 24,212,861 67,729,337 91,942,198 28,383,228 77,102,912 105,486,140 DEFERRED INFLOWS OF RESOURCES Deferred gain on debt refunding - 197,892 197,892 Deferred inflows -OPEB 319,657 68,733 388,390 Deferredinflows - pension 1,261,430 6,685 1,268,115 TOTAL DEFERRED INFLOWS OF RESOURCES 1,581,087 273,310 1,854,397 NET POSITION Net investment in capital assets 169,642,547 52,757,522 195,794,389 Restricted for: Debt service - 1,387,075 1,387,075 Public safety 5,366,928 - 5,366,928 Publicworks 1,664,831 1,664,831 - Economic development 1,700,252 1,700,252 9,439 Capital projects 16,828,641 16,828,641 - Other purposes 21,872 21,872 Unrestricted 5,239,376 (19,637,672) 12,207,384 TOTAL NET POSITION $ 200,464,447 $ 34,506,925 $ 234,971,372 $ 9,439 See accompanying notes to the basic financial statements. Page 1 STATEMENT OF ACTIVITIES CITY OF OWASSO, OKLAHOMA Forthe fiscal year ended June 30, 2021 Operating Capital Charges for Grants and Grants and Expenses SerAces Contributions Contributions Primary Government: 14,201,2691 $ I] 6,366,714F - p6,366,7141 - 1498,8351 - Governmental activities. 11,722,2451 - 11,722,2451 - 455,8871 - 1455,8871 - General government $ 4,833,848 $ 592,599 $ 39,980 $ 128,956,6381 857212 Public safety 04915,335 2,560,516 5509,269 478,836 Community development 841,560 329,790 12,935 - Recreatlonandculture 1,901,415 103,455 22,215 53,500 Economic development 470,509 14,493 129 - Publicworla 8,482,189 1,890208 611,283 267,015 TOTAL GOVERNMENTAL ACTIVIT BE 41,444,856 5,493,056 6,195,811 799,351 Business type actMlles: Water 7,105,922 7,887,893 - 23,930 Wastewater 5,415,957 5775,417 - 365,778 Sanitation 1921,089 0576,673 - 15,000 Recycle center 293,280 32,749 - Economic development 358,874 - - - Golf 1,526,501 801,495 - - TOTAL BL61NESS TYPE ACTIVITIES 16,621,623 17,074,127 - 404,708 Total primary government $ 58,066,479 $ 22,567,183 $ 6,195,811 $ 1,204,059 Component Unit: Economic development $ - $ - $ - $ - General Revenues : Taxes: Sales taxes Use taxes Franchise and public seMCe taxes Hotel taxes Intergovernmental Investment Income Miscellaneous Transfers lnternal actri Total general revenues and transfers Change In net position Net position beginning ofyear Net position end of year Component Net IExpensel Revenue and Chances In Net Position Unit Primary Government Economic Governmental Business Type Development ActM1Ies ActM1Ies Total AUtho,ty $ 14,201,2691 $ - $ 14,201,2691 $ I] 6,366,714F - p6,366,7141 - 1498,8351 - 1498,8351 - 11,722,2451 - 11,722,2451 - 455,8871 - 1455,8871 - 15,711,6881 15711,6881 123956,6381 123956,6381 - 805,901 805,901 - - 725,238 725,238 - - 670,584 670,584 - - 12605311 12605311 - - 1358,8741 1358,8741 - 1725,1061 VEST 061 857212 857,212 128,956,6381 857212 128,099,4261 39586,472 - 39586,472 - 4,238,665 - 4,238,665 - 1,109,503 - 1,109503 - 467,216 - 467,216 - 772,234 - 772,234 - 174,216 34,035 208,251 40 547,381 - 547,381 - 14,903,2711 4,903,271 41,992,416 4937,706 46,929722 40 13,035,778 5,794518 18,830,296 40 187,428,669 28712,407 216,141,076 9,399 $ 200,464,447 $ 34506 925 $ 234,9 71,3 72 $ 9,439 See accompanying notes to the basic financial statements. Page 2 BALANCE SHEET - - GOVERNMENTAL FUNDS CITY OF OWASSO, OKLAHOMA June 30, 2021 DEFERRED INFLOWS OF RESOURCES Unavailable revenue- charges for services 19,945 FUND BALANCE 494,150 514,095 Nonspendable- prepaid items 51,205 Vison Half -Penny Capital Other Total Economic development Recapture Tax Sales Tax Improvement Governmental Governmental 469,909 General Fund Fund Fund Funds Funds ASSETS 6,011,679 - 16,828,641 Other 12,418 - - 9,454 21,872 Cash and cash equivalents $ 11,157,396 $ 9,510,016 $ 5,883,260 $ 4,733,531 $ 5,410,155 $ 36,694,358 Investments 1,065,044 907,792 561,595 451,846 516,434 3,502,711 Prepaid items 51,205 - - - - 51,205 Receivables: - 481,482 Public safety 58,129 58,129 Accounts receivable, net of allowance 3,850 9,000 - 1,057,049 1,060,899 Due from other funds - - - 1,007,808 - 1,007,808 Due from other governments 4,823,539 708,749 644,316 - 107,023 6,283,627 Court fines receivable, net of allowance 20,885 - - 15,491,278 10,816,962 6,527,551 - 20,885 Other receivables 144,303 - 144,303 Land held for resale - - - 458,280 - 458,280 TOTAL ASSETS $ 17,266,222 $ 11,126,557 $ 7,089,171 $ 6,651,465 $ 7,090,661 $ 49,224,076 LIABILITIES, DEFERRED INFLOWS, AND FUND BALANCES LIABILITIES Accounts payable $ 188,852 $ 309,595 $ 165,349 $ 501,858 $ 386,738 $ 1,552,392 Accrued payroll liabilities 192,115 - 384,901 - 29,400 606,416 Due to other funds 1,299,720 11,370 - 60,924 1,372,014 Retainage payable - - 137,928 258,508 396,436 Unearned revenue 27,616 - 384 28,000 Other liabilities 46,696 46,696 TOTAL LIABILITIES 1,754,999 309,595 561,620 639,786 735,954 4,001,954 DEFERRED INFLOWS OF RESOURCES Unavailable revenue- charges for services 19,945 FUND BALANCE 494,150 514,095 Nonspendable- prepaid items 51,205 - 51,205 Restricted for: Economic development 50 - 1,700,202 1,700,252 Public safety 34,299 4,862,720 469,909 5,366,928 Public works - 1,664,831 - - 1,664,831 Capital projects - 10,816,962 - 6,011,679 - 16,828,641 Other 12,418 - - 9,454 21,872 Committed: Public safety - 819,997 819,997 Stormwater management 2,305,711 2,305,711 Capital projects - 555,284 555,284 Assigned: General government 481,482 - 481,482 Public safety 58,129 58,129 Community development 9,000 9,000 Recreation and culture 216,644 216,644 Economic development 7,250 7,250 Public works 31,729 31,729 Capital projects 566,146 566,146 Unassigned 14,022,926 - 14,022,926 TOTAL FUND BALANCES 15,491,278 10,816,962 6,527,551 6,011,679 5,860,557 44,708,027 TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES $ 17,266,222 $ 11,126,557 $ 7,089,171 $ 6,651,465 $ 7,090,661 $ 49,224,076 See accompanying notes to the basic financial statements. Page 3 RECONCILIATION OF GOVERNMENTAL FUNDS BALANCE SHEET TO THE STATEMENT OF NET POSITION CITY OF OWASSO, OKLAHOMA For the fiscal year ended June 30, 2021 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position Total fund balances- governmental funds $ 44,708,027 Amounts reported for governmental activities 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, net of accumulated depreciation of $91,692,574, and net of capital assets of Internal Service Funds of $214,242 169,428,305 Certain assets are not available to pay for current fund liabilities and, therefore, are deferred in the funds: Accounts receivable 514,095 Internal service funds are used by management to charge the costs of certain activities, such as insurance, to individual funds. The assets and liabilities of the internal service fund are included in governmental activities in the Statement of Net Position. Net position of the Internal Service Fund 3,740,642 Internal service fund interfund balance resulting from net revenues reported in business -type activities (651,247) Certain long -term liabilities and related deferred inflows and outflows of resources are not due and payable from current financial resources and, therefore, are not reported in the funds: Accrued compensated absences, net of Internal Service Funds of $14,524 (2,350,662) Total OPEB liability, and related deferred inflows of resources and deferred outflows of resources, net of Internal Service Funds of $22,695 (1,831,401) Net Pension Liability, net of Internal Service Funds of $57,715 (20,866,712) Deferred inflows of resources related to pensions, net of Internal Service Funds of $461 (1,260,969) Deferred outflows of resources related to pensions, net of Internal Service Funds of $47,124 9,034,370 Net position of governmental activities $ 200,464,447 See accompanying notes to the basic financial statements. Page 4 STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES -- GOVERNMENTAL FUNDS CITY OF OWASSO, OKLAHOMA For the fiscal year ended June 30, 2021 EXPENDITURES Vson Half -Penny Capital Other Total General Recapture Tax Sales Tax Improvement Governmental Governmental 4,158,836 Fund Fund Fund Fund Funds Funds REVENUES - - 823,715 Culture and recreation 1,305,336 Taxes $ 34,520,227 $ 5,375,496 $ 4,886,523 $ $ 902,819 $ 45,685,065 Intergovernmental 6,254,774 - - 3,524,660 887,144 7,141,918 Charges for services 765,270 15,167,087 TOTAL EXPENDITURES 35,393 3,871,202 4,671,865 Fines and forfeitures 232,868 - 840 233,708 Licenses and permits 337,881 - - - 102,578 440,459 Investment income 39,569 43,040 34,398 12,169 25,228 154,404 Miscellaneous 150,395 13,300 98,132 28,998 290,825 TOTAL REVENUES 42,300,984 5,418,536 4,934,221 145,694 5,818,809 58,618,244 EXPENDITURES Current: General government 4,158,836 - - 4,158,836 Public safety 15,369,540 3,426,771 2,029,138 20,825,449 Community development 823,715 - - 823,715 Culture and recreation 1,305,336 - 1,305,336 Economic development 193,056 - 275,263 468,319 Public works 1,311,470 1,706,189 507,001 3,524,660 Capital outlay 812,133 4,500,344 1,017,218 6,501,085 2,336,307 15,167,087 TOTAL EXPENDITURES 23,974,086 4,500,344 6,150,178 6,501,085 5,147,709 46,273,402 Excess (deficiency) of revenues over expenditures 18,326,898 918,192 (1,215,957) (6,355,391) 671,100 12,344,842 OTHER FINANCING SOURCES (USES) Transfers in 19,336,838 929,515 8,370,932 - 28,637,285 Transfers out (32,869,951) (670,605) (33,540,556) TOTAL OTHER FINANCING SOURCES (USES) (13,533,113) 929,515 8,370,932 (670,605) (4,903,271) NET CHANGE IN FUND BALANCES 4,793,785 918,192 (286,442) 2,015,541 495 7,441,571 FUND BALANCE- BEGINNING OF YEAR 10,697,493 9,898,770 6,813,993 3,996,138 5,860,062 37,266,456 FUND BALANCE - END OF YEAR $ 15,491,278 $ 10,816,962 $ 6,527,551 $ 6,011,679 $ 5,860,557 $ 44,708,027 See accompanying notes to the basic financial statements. Page 5 RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES CITY OF OWASSO, OKLAHOMA For the fiscal year ended June 30, 2021 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 $ 7,441,571 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 and amortization expense to allocate those expenditures over the life of the assets: Capital asset purchases capitalized 15,167,087 Depreciation expense (8,592,848) Loss on disposal of capital assets (140,438) 6,433,801 Revenues in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds: Contributed assets 283,515 Change in deferred inflow related to court bonds (18,465) Change in deferred inflow related to ambulance billings (8,451) 256,599 Some expenses reported in the Statement of Activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds: Accrued compensated absences, net of Internal Service Funds $2,374 (171,557) Total other post - employment benefit liability, net of Internal Service Funds $410 (108,177) Pension (revenues) expenses (1,725,900) 2,005,634 Internal service funds are used by management to charge the costs of certain activities, such as insurance, to individual funds. The assets and liabilities of the internal service fund is included in governmental activities in the Statement of Net Position. Total change in net position of the internal service fund 1,095,333 Net revenues of internal service funds reported in business -type activities (185,893) 909,440 Change in net position of governmental activities $ 13,035,778 See accompanying notes to the basic financial statements. Page 6 STATEMENT OF NET POSITION -- PROPRIETARY FUNDS CITY OF OWASSO, OKLAHOMA June 30, 2021 Owasso Owasso Infernal Public Works Public Golf Service Authority Authority Total Funds ASSETS CURRENT ASSETS 389,593 2,245,967 57,079 87,446 Cash and cash equivalents $ 6,595,887 $ 483,680 $ 7,079,567 $ 4,113,701 Investments 779,805 46,170 825,975 392,679 Restricted cash and cash equivalents 31,895,350 - 31,895,350 - Accoun is receivable, net of allowance 1,749,150 - 1,749,150 - Ofher receivables - 9,444 9,444 997 Due from other funds 1,358,035 - 1,358,035 18,864 Prepaid items - 1,200 1,200 39,593 Inventory 77,317 70,343 70,343 7,698 TOTAL CURRENT ASSETS 42,378,227 610,837 42,989,064 4,565,834 NONCURRENT ASSETS Restricted assets Cash and cash equivalents Land and construction in progress Other depreciable capital assets, net DEFERRED OUTFLOWS OF RESOURCES Deferred outflows- OPEB Deferred outflows - pension LIABILITIES AND NET POSITION CURRENT LIABILITIES Accounts payable Accrued payroll liabilities Interest payable Contracts and refainage payable Unearned re Due to other funds Other liabilities Current portion of noncurrent liabilities: Capital lease obligation Deposits subject to refund Notes payable Revenue note payable Incurred but not reported claims Accrued compensated absences 573,792 - 573,792 - 4,242,897 171,170 4,414,067 - 61,120,630 2,306,617 63,427,247 214,242 TOTAL NONCURRENT ASSETS 65,937,319 2,477,787 68,415,106 214,242 TOTAL ASSETS 108,315,546 3,088,624 111,404,170 4,780,076 19,071 4,366 23,437 1,454 524,564 108,507 633,071 56,762 TOTAL DEFERRED OUTFLOWS 543,635 112,873 656,508 58,216 1,856,374 389,593 2,245,967 57,079 87,446 26,133 113,579 9,870 409,145 - 409,145 - 178,857 - 178,857 - - - - 112 1,012,693 - 1,012,693 - 63,061 51,831 114,892 - - 55,355 55,355 - 212,884 - 212,884 - 1,482,461 - 1,482,461 - 4,389,000 - 4,389,000 - - - - 449,428 68,565 15,169 83,734 6,826 TOTAL CURRENT LIABILITIES 9,760,486 538,081 10,298,567 523,315 NONCURRENT LIABILITIES Capital lease obligation - 163,174 163,174 - Deposits subject to refund 573,792 - 573,792 - Notes payable, net 36,805,981 - 36,805,981 - Revenue note payable 28,891,000 - 28,891,000 - Pension liability 620,336 129,097 749,433 69,519 Total OPEB liability 291,004 65,191 356,195 24,193 Incurred but not reported claims - - - 467,772 Accrued compensated absences 77,317 17,106 94,423 7,698 TOTAL NONCURRENT LIABILITIES 67,259,430 374,568 67,633,998 569,182 TOTAL LIABILITIES 77,019,916 912,649 77,932,565 1,092,497 DEFERRED INFLOWS OF RESOURCES Deferred gain on debt refunding 197,892 - 197,892 - Deferred inflow- OPEB 55,770 12,182 67,952 4,598 Deferred inflow - pension 5,660 931 6,591 555 TOTAL DEFERRED INFLOWS 259,322 13,113 272,435 5,153 NET POSITION Net investment in capital assets 50,498,264 2,259,258 52,757,522 214,242 Restricted for Debt service 1,387,075 - 1,387,075 - Unresfricfed (deficit) (20,305,396) 16,477 (20,288,919) 3,526,400 TOTAL NET POSITION $ 31,579,943 $ 2,275,735 33,855,678 $ 3,740,642 some amounts reported for business-type - fi -fies in the Statement of Net Position are diff. -t because certain infernal service fund balances are included with business -type activities and reported as inferfund balances 651,247 Total business-tYpe a flvfil net position per Government -Wide financial statements $ 34,506,925 See accompanying notes to the basic financial statements. Page 7 STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION -- PROPRIETARY FUNDS CITY OF OWASSO, OKLAHOMA Forthe fiscal year ended June 30, 2021 OPERATING REVENUES Charges for services: Water Wastewater Refuse Recycle Penalties /late charges Golf Internal service charges for services Other OPERATING EXPENSES Utility billing Administration Water Wastewater treatment plant Wastewater collection Refuse collections Recycle center TIF/ economic development Golf Claims expense City garage Depreciation Other TOTAL OPERATING REVENUES TOTAL OPERATING EXPENSES OPERATING INCOME (LOSS) NONOPERATING REVENUES (EXPENSES) Investment income Interest expense TOTAL NONOPERATING REVENUES (EXPENSES) Net income (loss) before contributions and transfers Capital contributions Transfers in - required Transfers in- other Transfers out CHANGE IN NET POSITION NET POSITION - BEGINNING NET POSITION - ENDING Change in net position per above 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 Change in Business -Type Activities Net Position per Government -Wide Financial Statements Enterprise Funds Owasso Owasso Internal Public Works Public Golf Service Authority Authority Total Funds $ 7,632,976 $ - $ 7,632,976 $ - 5,775,417 - 5,775,417 - 2,576,673 - 2,576,673 - 32,749 - 32,749 - 209,299 - 209,299 - - 798,468 798,468 - - - - 8,129,998 45,618 2,927 48,545 43,168 16,272,732 801,395 17,074,127 8,173,166 472,149 - 472,149 - 1,207,472 - 1,207,472 1,574,268 4,278,318 - 4,278,318 - 1,363,519 - 1,363,519 - 840,648 - 840,648 - 1,265,404 - 1,265,404 - 216,158 - 216,158 - 358,874 - 358,874 - - 1,427,207 1,427,207 - - - - 4,883,848 - - - 613,916 3,158,269 144,054 3,302,323 25,610 28,700 2,275,735 $ 28,700 3,740,642 13,189,511 1,571,261 14,760,772 7,097,642 3,083,221 (769,866) 2,313,355 1,075,524 34,035 - 34,035 19,809 (2,046,744) (2,046,744) (2,012,709) (2,012,709) 19,809 1,070,512 (769,866) 300,646 1,095,333 404,708 - 404,708 - 29,566,814 - 29,566,814 - 275,850 3,094,578 3,370,428 - (28,033,971) (28,033,971) 3,283,913 2,324,712 5,608,625 1,095,333 28,296,030 (48,977) 28,247,053 2,645,309 $ 31,579,943 $ 2,275,735 $ 33,855,678 $ 3,740,642 5,608,625 185,893 See accompanying notes to the basic financial statements. Page 8 STATEMENT OF CASH FLOWS -- PROPRIETARY FUNDS CITY OF OWASSO, OKLAHOMA For the fiscal year ended June 30, 2021 CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers Payments to suppliers Payments to employees Receipts of customer meter deposits Customer meter deposits refunded or applied Other receipts (payments) NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Transfers from other funds Transfers to other funds NET CASH PROVIDED BY NONCAPITAL FINANCING ACTIVITIES CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Transfers to other funds - reimbursements Principal paid on capital lease Purchases of capital assets Principal paid on capital debt Interest paid on capital debt NET CASH (USED IN) CAPITAL AND RELATED FINANCING ACTIVITIES CASH FLOWS FROM INVESTING ACTIVITIES Purchases of investments Investment income received NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS BALANCES - BEGINNING OF YEAR BALANCES - END OF YEAR Enterprise Funds Owasso Owasso Internal Public Works Public Golf Service Authority Authority Total Funds $ 15,563,964 $ 800,822 $ 16,364,786 $ 8,129,998 (5,686,556) (173,864) (5,860,420) (6,898,525) (3,597,761) (953,969) (4,551 ,730) (446,578) 223,657 223,657 (172,612) (172,612) - (531,560) (1,298,027) (1,829,587) 47,318 5,799,132 (1,625,038) 4,174,094 832,213 29,842,664 3,094,578 32,937,242 (24,332,903) - (24,332,903) 5,509,761 3,094,578 8,604,339 (3,701,068) (3,701,068) (53,352) (53,352) (3,757,819) (890,916) (4,648,735) (11,246) (5,460,921) (5,460,921) (2,067,057) (2,067,057) (14,986,865) (944,268) (15,931,133) (11,246) (111,557) (45,662) (157,219) 13,992 34,035 34,035 19,809 (77,522) (45,662) (123,184) 33,801 (3,755,494) 479,610 (3,275,884) 854,768 42,820,523 4,070 42,824,593 3,258,933 $ 39,065,029 1 483,680 $ 39,548,709 $ 4,113,701 (Continued) See accompanying notes to the basic financial statements. Page 9 STATEMENT OF CASH FLOWS -- PROPRIETARY FUNDS -- Continued CITY OF OWASSO, OKLAHOMA For the fiscal year ended June 30, 2021 RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES Operating income (loss) Adjustments to reconcile operating income (loss) to net cash provided by (used in) operating activities: Depreciation expense Change in assets and liabilities: Accounts receivables, net Other receivables Inventory Due from other funds Net OPEB asset Net pension asset Accounts payable Accrued payroll liabilities Estimated liability for claims Customer meter deposits payable Due to other funds Unearned revenue Other liabilities Accrued compensated absences NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES NONCASH ACTIVITIES Contributed capital assets RECONCILIATION OF CASH AND CASH EQUIVALENTS TO THE STATEMENT OF NET POSITION Cash and cash equivalents - current Cash and cash equivalents - restricted current Cash and cash equivalents - restricted noncurrent TOTAL CASH AND CASH EQUIVALENTS Enterprise Funds Owasso Owasso Internal Public Works Public Golf Service Authority Authority Total Funds $ 3,083,221 $ (769,866) $ 2,313,355 $ 1,075,524 3,158,269 144,054 3,302,323 25,610 (630,401) - (630,401) - 2,354 2,354 36,559 5,513 5,513 - (57,206) - (57,206) (8,592) 20,137 4,684 24,821 1,872 89,351 19,087 108,438 11,279 806,414 310,670 1,117,084 (157,253) 19,300 1,298 20,598 1,876 - - - (152,400) 51,045 51,045 (766,662) (1,323,699) (2,090,361) - - 112 9,719 (22,904) (13,185) - 15,945 3,771 19,716 (2,374) $ 5,799,132 $ (1,625,038) $ 4,174,094 $ 832,213 $ 404,708 $ - $ 404,708 $ $ 6,595,887 $ 483,680 $ 7,079,567 $ 4,113,701 31,895,350 - 31,895,350 - 573,792 573,792 $ 39,065,029 $ 483,680 $ 39,548,709 $ 4,113,701 (Concluded) See accompanying notes to the basic financial statements. Page 10 NOTES TO BASIC FINANCIAL STATEMENTS CITY OF OWASSO, OKLAHOMA YEAR ENDED JUNE 30, 2021 TABLE OF CONTENTS 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. Pensions and Other Post - Employment Benefits Note 2 - Stewardship, Compliance, and Accountability A. Deposits and Investments Laws and Regulations B. Debt Restrictions and Covenants C. Fund Equity / Net Position Restrictions Note 3 - Detail Notes - Transaction Classes / Accounts A. Deposit and Investment Risks B. Accounts Receivable C. Restricted Assets D. Capital Assets E. Long -Term Debt F. Interfund Balances and Activities Note 4 - Other Notes A. Employee Pension Plans B. Other Post - Employment Benefits C. Risk Management D. Commitments and Contingencies Note 5 - Future Accounting Pronouncements Note 6 - Subsequent Events FN Page 1 NOTES TO BASIC FINANCIAL STATEMENTS - Continued CITY OF OWASSO, OKLAHOMA YEAR ENDED JUNE 30, 2021 NOTE 1 -- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES These financial statements are prepared as required by generally accepted accounting principles promulgated by the Governmental Accounting Standards Board (GASB). The accounting and reporting framework and the more significant accounting policies are discussed in subsequent sections of this note. 1. A-- Financial Reporting Entity The City of Owasso is organized under the laws of the State of Oklahoma and is governed by a five - member elected board. As required by generally accepted accounting principles (GAAP), these financial statements present the primary government and its component units. Blended component units, although legally separate entities, are in substance part of the government's operations. The City's financial reporting entity is comprised of the following: Primary government: Blended Component Units: Discretely Presented Component Unit: City of Owasso Owasso Public Works Authority Owasso Public Golf Authority Owasso Economic Development Authority In determining the financial reporting entity, the City complies with the provisions of all relevant GASB Standards, and includes all component units for which the City is financially accountable. Each of these component units is a Public Trust 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 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 entities that meet the component unit criteria described above and are, in substance, part of the City's operations, even though they are legally separate entities. These component units' funds are blended into those of the City's by appropriate fund category to comprise the primary government presentation. FN Page 2 NOTES TO BASIC FINANCIAL STATEMENTS - Continued CITY OF OWASSO, OKLAHOMA YEAR ENDED JUNE 30, 2021 1. A-- Financial Reporting Entity -- Continued The component units that are blended into the primary governments' fund categories are presented below: Component Unit Brief Description /Inclusion Criteria Included Funds Owasso Public Created January 10, 1973, to finance, develop, and OPWA Works Authority operate the water, wastewater, and refuse disposal facilities. The current City Council serves as entire Enterprise governing body (Trustees) of the OPWA, and Fund management of the City has operational responsibility for the OPWA. Any issuances of debt would require a three - quarters approval of the City Council. Owasso Public Created August 8, 1989, to acquire, construct, own, OPGA Golf Authority maintain, equip, operate, and conduct a golf course and incidental facilities. The current City Council serves as Enterprise entire governing body (Trustees) of OPGA, and Fund management of the City has operational responsibility for the OPGA. Any issuances of debt would require a three - quarters approval of the City Council. Discretely Presented Component Units: Discretely presented component units are separate legal entities whose governing body (in majority) is appointed by the Mayor or City Council, but these entities do not meet the criteria for blending. Since these component units are not as closely associated with the primary government as are blended component units, they are reported in discretely presented columns on the government -wide financial statements labeled "Component Units." The City has one component unit that is discretely presented in the City's report as described below: Owasso Created October 21, 1987, to promote and encourage Economic development of industry and commerce on behalf of the Development City. The OEDA governing body is comprised of seven Authority members: one council member of the Beneficiary, one (OEDA) board member of the Chamber of Commerce, and five appointed members. Any issuances of debt would require a two - thirds approval of the City Council. The discretely presented and the blended component units of the City do not issue separately audited financial statements. FN Page 3 NOTES TO BASIC FINANCIAL STATEMENTS - Continued CITY OF OWASSO, OKLAHOMA YEAR ENDED JUNE 30, 2021 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. They include all funds of the reporting entity except for fiduciary funds. 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. Fund Financial Statements: Fund financial statements of the reporting entity are organized into funds, each of which is considered to be a separate accounting entity. Each fund is accounted for by providing a separate set of self - balancing accounts which constitute its assets, liabilities, deferred inflows and outflows of resources, fund equity, revenues, and expenditures /expenses. Funds are organized into two major categories: governmental and proprietary. The City presently has no fiduciary funds. An emphasis is placed on major funds within the governmental and proprietary categories. A fund is considered major if it is the primary operating fund of the City or meets the following criteria: a) Total assets, liabilities, 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, liabilities, revenues, or expenditures /expenses of that individual governmental or enterprise fund are at least 5 percent of the corresponding total for all governmental and enterprise funds combined. c) A fund that does not meet the criteria of (a) and (b) but which management has determined is of such significance to be reported as a major fund. The funds of the financial reporting entity are described below: GOVERNMENTAL FUNDS: General Fund: The General Fund is the primary operating fund of the City and is always classified as a major fund. It is used to account for all activities except those legally or administratively required to be accounted for in other funds. Special Revenue Funds: Special Revenue Funds are used to account for the proceeds of specific revenue sources that are legally or administratively restricted or committed to expenditure for certain purposes. The reporting entity includes the following special revenue funds: Major Fund Brief Description Half -Penny Sales Tax Fund Accounts for half -penny sales tax revenue. Funds are restricted to operational or capital expenditures for Police, Fire, and Streets functions. Fire and Police each receive 357o of the revenue and Streets receives 307o of the revenue. FN Page 4 NOTES TO BASIC FINANCIAL STATEMENTS - Continued CITY OF OWASSO, OKLAHOMA YEAR ENDED JUNE 30, 2021 1.B- -Basis of Presentation -- Continued Non -Maior Funds Brief Description Ambulance Service Fund Accounts for the revenue received from ambulance subscriptions and billings. Allocated revenue is 857o of receipts for ambulance billings and subscriptions. Emergency 911 Fund Accounts for the revenue received from the emergency service fee on telephone bills. Funds are used to pay monthly service charges for the 911 system. Remaining funds may be used for any other emergency communications need. Cemetery Care Fund Accounts for 12.57o of revenue from cemetery service fees (lot sales and interments). These funds may only be used for capital improvements to the cemetery. Emergency Siren Fund Accounts for the per acre fees received when new subdivisions are platted as required by subdivision regulations. Funds are used for the acquisition and /or purchase of emergency sirens. Juvenile Court Fund Accounts for fines generated as a result of prosecution of juveniles under the "Agreement for Municipal Court Jurisdiction Concerning Juveniles." Funds are used for local programs that address problems of juvenile crime. Hotel Tax Fund Accounts for a 37o hotel tax to be used in economic development and promotion of tourism and a 27o hotel tax designated to fund the Owasso Strong Neighborhoods Initiative. Stormwater Management Established by ordinance to account for revenues derived Fund from the storm water system service charge. Funds are used for expenses attributable to storm water management services. FN Page 5 NOTES TO BASIC FINANCIAL STATEMENTS - Continued CITY OF OWASSO, OKLAHOMA YEAR ENDED JUNE 30, 2021 1.B--Basis of Presentation -- Continued Capital Proiect Funds: Capital Project Funds are used to account for resources restricted, committed, or assigned for the acquisition or construction of specific capital projects or items. The reporting entity includes the following capital project funds: Maior Funds Brief Description Vision Recapture Tax Fund Accounts for 55 /100th's sales tax revenue. Funds are restricted to capital expenditures for street projects approved by the citizens of Owasso in January 2016. Capital Improvement Fund Accounts for the funds remaining from the one -cent capital improvements sales tax after payment of principal and interest on debt to fund capital projects. The expenditure items in this budget are based on priorities and recommendations established by the capital improvements committee and approved by the City Council. Non -Major Funds Brief Description Ambulance Capital Fund Accounts for the fifteen percent (157o) of revenue from ambulance billings and subscriptions. Expenditures are for ambulance capital outlay for ambulance service. Tax Incremental Financing Accounts for TIF tax revenues generated within the Owasso Fund (TIF) Increment District No. 1 ( Redbud District). TIF revenues are comprised of 27o sales tax on businesses locating within the TIF district after December 20, 2016, and property taxes related to increases in the property tax base within the TIF District subsequent to the December 20, 2016, creation date. Funds are restricted to capital expenditures within the Redbud District. Park Development Fund Accounts for revenue received from building permit charges required by ordinance as in- lieu -of payments in subdivisions that do not donate park property. Funds are used for improvements to and development of the park system. Capital Project Grant Fund Accounts for grant revenue from state and federal grants. Funds are used for capital improvements as specified in grant contracts. FN Page 6 NOTES TO BASIC FINANCIAL STATEMENTS - Continued CITY OF OWASSO, OKLAHOMA YEAR ENDED JUNE 30, 2021 1.B--Basis of Presentation -- Continued Debt Service Fund: The debt service fund accounts for ad- valorem taxes levied by the City for use in retiring judgments and their related interest expense. Issuance of General Obligation debt requires voter approval. The City neither has any outstanding General Obligation debt nor voter approval to issue General Obligation debt. 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 primarily to account for governmental activities provided and charged to other funds or entities within the reporting entity. Proprietary fund operating revenues and expenses, such as charges for services and costs, and depreciation on capital assets, result from exchange transactions associated with the principal activity of the fund. Non - operating revenues and expenses 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: Funds Brief Description Owasso Public Works Accounts for activities of the public trust in providing water, Authority wastewater and refuse disposal services to the public. Owasso Public Golf Authority Accounts for activities of the public trust in providing recreational golf activities to the public. Internal Service Funds: Funds Brief Description City Garage Fund Accounts for the financing of goods and services provided by one department to other departments of the City. The City garage invoices for vehicle parts and services used by other departments. Worker's Comp Accounts for the funds reserved for the payment of expenses Self- Insurance and administration for workers' compensation benefits for all City employees. Expenditures from this fund are approved by the City Council but, by ordinance, are not subject to limitations on spending amounts as are other City purchases. General Liability / and Accounts for the funds reserved for payments of expenses of Property Self- Insurance property claims and for collision repairs to City vehicles. The City carries only liability insurance on City vehicles. FN Page 7 NOTES TO BASIC FINANCIAL STATEMENTS - Continued CITY OF OWASSO, OKLAHOMA YEAR ENDED JUNE 30, 2021 1.B- -Basis of Presentation -- Continued Internal Service Funds - Continued: Funds Brief Description Healthcare Self- Insurance Accounts for the funds reserved for the payment of expenses and administration for healthcare benefits for all City employees. The Plan is administered by a third -party administrator. 1.0 -- 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 -type activities are presented using the economic resources measurement focus as defined in item 2, below. In the fund financial statements, the "current financial resources" measurement focus or the "economic resources" measurement focus is used as appropriate: All governmental fund types and similar component units utilize a "current financial resources" measurement focus. Only current financial assets, liabilities and deferred inflows and outflows 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. 2. Proprietary fund types and similar component units utilize 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 and deferred inflows and outflows (whether current or noncurrent, financial or nonfinancial) associated with their activities are reported. Proprietary fund equity is classified as net position. Basis of Accounting: In the government -wide statement of net position and statement of activities both governmental and business -type activities are presented using the accrual basis of accounting. Under the accrual basis of accounting, revenues are recognized when earned and expenses are recorded when the liability is incurred or economic asset is used. Revenues, expenses, gains, losses, assets, and liabilities resulting from exchange and exchange -like transactions are recognized when the exchange takes place. FN Page 8 NOTES TO BASIC FINANCIAL STATEMENTS - Continued CITY OF OWASSO, OKLAHOMA YEAR ENDED JUNE 30, 2021 1.0 -- Measurement Focus and Basis of Accounting -- Continued In the fund financial statements, governmental funds are presented on the modified accrual basis of accounting. Under the 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 (defined by the City as 180 days after year -end for intergovernmental grants and 60 days after year -end for other receivables) to pay current liabilities. Sales and use taxes, franchise taxes, hotel taxes, grants, 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, pension and OPEB costs, 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 financing sources. All proprietary funds utilize the accrual basis of accounting. Under the accrual basis of accounting, revenues are recognized when earned, and expenses are recorded when the liability is incurred or economic asset is used. 1.D -- Assets, Liabilities, Deferred Oufflows /Inflows of Resources, and Net Position /Fund Balance Cash and Cash Equivalents: Cash and cash equivalents include all demand, savings accounts, and certificates of deposit or short -term investments with an original maturity of three months or less at the date of purchase. Restricted Cash: Includes revenue bond, customer deposits and promissory note trust account investments in open -ended mutual fund shares reported at the funds' amortized cost. Investments: Investments include certificates of deposit or short -term investments with an original maturity of three months to one year at the date of purchase. Investment income reflected in the proprietary statements is considered non - operating income. Receivables: Material receivables in governmental funds include revenue accruals such as sales tax, franchise tax, and grants and other similar intergovernmental revenues since they are usually both measurable and available. Non - exchange transactions collectible but not available are reported as deferred inflows of resources at the fund level. Interest and investment earnings are recorded when earned only if paid within 60 days since they would be considered both measurable and available at the fund level. Material receivables in proprietary funds consist of all revenues earned at year -end and not yet received. Utility accounts receivable and interest earnings comprise the majority of proprietary fund receivables. Allowances for uncollectible accounts receivable for governmental and proprietary funds are based upon historical trends and the periodic aging of accounts receivable. Court receivables are reported net of $409,338 for allowance for doubtful accounts. FN Page 9 NOTES TO BASIC FINANCIAL STATEMENTS - Continued CITY OF OWASSO, OKLAHOMA YEAR ENDED JUNE 30, 2021 1.D -- Assets, Liabilities, Deferred Oufflows /Inflows of Resources, and Net Position /Fund Balance -- Continued Inventories: The City has chosen to record consumable materials and supplies as expenditures in the governmental funds at the time of purchase, and year -end inventory on -hand is not material; therefore, no balances for inventory on -hand are reported on the balance sheet for such funds. However, in the Owasso Public Golf Authority, the golf pro shop and food /beverage inventory is recorded as an asset when purchased and expensed when consumed. Such inventory is valued at the lower of cost or market. No inventory is kept on hand for the Owasso Public Works Authority. Land Held For Resale: Land donated to the City, which is held for resale, is recorded at the value assigned by a professional appraisal, and carried at lower of cost or market. The value of the land held for resale by the City at year end amounts to $458,280. The land is recorded as an asset in both the government -wide Statement of Net Position (governmental activities) and in the governmental funds balance sheet. Leases: In accordance with GASB Statement No. 62, codification of accounting and financial reporting guidance contained in pre- November 30, 1989 FASB and AICPA pronouncements, some leases are classified as capital lease obligations and are reported at the lesser of present value of minimum lease payments or fair value of the leased property at inception. Leases not meeting the criteria of a capital lease are classified as operating leases. Capital Assets: The accounting treatment of property, plant, and equipment (capital assets) depends on whether the assets are used in governmental fund operations or proprietary fund operations and whether they are reported in the government -wide or fund financial statements. Government -Wide and Proprietary Fund Statements: In the government -wide and proprietary fund financial statements, property, plant, and equipment are accounted for as capital assets. The City's capitalization threshold is $5,000. For FYE 2021, there was no interest capitalized in Owasso Public Works Authority. 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 acquisition value at the date of donation. General infrastructure assets (such as roads, bridges, and traffic systems) acquired prior to July 1, 2002 are reported at estimated historical cost using deflated replacement costs. The cost of normal maintenance and repairs to these assets that do not add materially to the value of the assets or extend the assets' useful lives are not capitalized. Depreciation of all exhaustible capital assets is recorded as an operating expense in the proprietary fund financial statements and an allocated expense in the Government Wide 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: FN Page 10 NOTES TO BASIC FINANCIAL STATEMENTS - Continued CITY OF OWASSO, OKLAHOMA YEAR ENDED JUNE 30, 2021 1.D -- Assets, Liabilities, Deferred Oufflows /Inflows of Resources, and Net Position /Fund Balance -- Continued Buildings 50 years Other improvements 10 -50 years Infrastructure 15 -50 years Equipment and vehicles 5 -10 years Governmental Fund Financial Statements: In the governmental fund financial statements, capital assets acquired are accounted for as capital outlay expenditures. Depreciation is not recognized. Restricted Assets: Restricted assets include current and non - current assets of enterprise funds and business -type activities that are legally restricted as to their use based on repayment obligations. Lona -Term Debt: Accounting treatment of long -term liabilities varies depending upon the source of repayment, the measurement focus applied and whether the liability is reported in the government -wide or fund financial statements. Government -Wide Statements: All long -term liabilities to be repaid from governmental activities, business -type activities, proprietary fund, and component unit resources are reported as liabilities incurred at the time of recognition. The long -term liabilities consist primarily of accrued compensated absences, capital leases payable, pension and other post - employment benefit liabilities, deposits subject to refund, notes payable, and revenue bonds payable. Bond premiums and discounts are deferred and amortized over the life of the bonds using the effective interest method. Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs are expensed when incurred. Fund Financial Statements: Long -term liabilities of governmental funds, with the exception of deposits subject to refund, are not reported in the fund financial statements. The debt proceeds and premiums are reported as other financing sources. Discounts are reported as other financing uses. Bond issuance costs are expended as incurred, and payment of principal and interest reported as expenditures. The accounting for proprietary funds is the same in the fund statements as it is in the government -wide statements. Compensated Absences: After a six -month probationary period, all regular full -time and qualified part -time employees are granted vacation benefits in amounts from 60 hours to 190 hours per year depending upon employment classification and tenure with the City, with a maximum accumulation of 290 hours. After a twelve -month probationary period, police officers are granted vacation benefits in amounts from 96 hours to 216 hours per year depending upon tenure with the City, with a maximum accumulation of 500 hours. Firefighters accrue 144 vacation hours a year during the first year of employment; after a twelve -month probationary period, firefighters are granted vacation benefits in amounts from 264 hours to 408 hours per year depending upon tenure with the City, with a maximum accumulation of 528 hours. All vacation benefits accumulate pro rata on a bi- weekly basis. Accumulated vacation leave vests, and the City is obligated to make payment even if the employee terminates. FN Page 11 NOTES TO BASIC FINANCIAL STATEMENTS - Continued CITY OF OWASSO, OKLAHOMA YEAR ENDED JUNE 30, 2021 1.D -- Assets, Liabilities, Deferred Oufflows /Inflows of Resources, and Net Position /Fund Balance -- Continued Regular full -time employees accrue 96 hours of sick leave per year, up to a maximum of 1,000 hours. Qualified part -time employees accrue sick leave based on numbers of hours worked per week, up to a maximum of 725 hours. Police officers accrue 1 1 1 hours of sick leave per year, up to a maximum of 1,105 hours. Firefighters accrue 216 hours of sick leave per year, up to a maximum of 1,440 hours. Sick leave benefits accumulate pro rata on a bi- weekly basis. However, sick leave is not paid upon termination for nonunion employees. Police and Fire union employees receive 1570 of their accumulated sick leave balance upon retirement with a 90 -day notice to the City. The estimated liabilities for vested benefits also include salary - related payments such as employment taxes. Compensated absences are reported as a liability incurred using the vesting method, in which leave amounts for both employees who currently are eligible to receive separation payments and other employees who are expected to become eligible in the future to receive such payments upon separation are included. The liability for such leave is reported as incurred in the government -wide and proprietary fund financial statements. For the governmental activities, the compensated absences liability is generally liquidated by the general fund. Governmental funds report only the matured compensated absences payable to terminated employees. Deferred Outflows /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 as such will not be recognized as an outflow of resources (expense /expenditure) until then. Both the entity -wide and proprietary fund statements of net position include the following items that are reported as deferred outflows of resources: deferred charges on the pension liability and deferred charges on OPEB liability. 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 periods) and so will not be recognized as an inflow of resources (revenue) until that time. Both the entity -wide and proprietary fund statements of net position include deferred charges on the pension and OPEB liabilities and the deferred gain on debt refunding that are reported as deferred inflows. A deferred gain on refunding results from the difference in the carrying value of refunded debt and its reacquisition price. This amount is deferred and amortized over the shorter of the life of the refunded or refunding debt. Deferred outflow /inflow of resources occur in relation to pension net liability and OPEB liability when contributions are made subsequent to the measurement date, when investment earnings come in higher or lower than anticipated, when there is a change in the City's proportionate share, when there is a change in assumptions, and when experience varies from actuarial assumptions. FN Page 12 NOTES TO BASIC FINANCIAL STATEMENTS - Continued CITY OF OWASSO, OKLAHOMA YEAR ENDED JUNE 30, 2021 1.D -- Assets, Liabilities, Deferred Oufflows /Inflows of Resources, and Net Position /Fund Balance -- Continued The governmental fund balance sheet also includes unavailable revenue, which is reported as a deferred inflow of resources only under the modified accrual basis of accounting. The unavailable revenue from charges for services, such as court fines and ambulance receivable not collected within sixty days of fiscal year -end, is deferred and recognized as an inflow of resources until the period in which the amounts become available. 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 outstanding balances of any bond, mortgages, notes or other borrowings, and unspent bond proceeds that are attributable to the acquisition, construction, or improvement of those assets. Deferred outflows of resources and deferred inflows of resources that are attributable to the acquisition, construction, or improvement of those assets or related debt are also included in this component of net position. The classification of a borrowing as capital - related is made separately for each column reported on the government -wide statement of net position, so debt might be classified as capital - related for one column but not for another. A portion of the City's enterprise fund debt is being used for the acquisition of capital assets in governmental activities. As a result, the capital assets and the related borrowings are reported in different activity columns, but within the same primary government total column. b) Restricted net position - Consists of resources with constraints placed on their 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 resources that do not meet the definition of "restricted" or "net investment in capital assets." It is the City's policy first to use restricted resources prior to the use of unrestricted resources when an expense is incurred for purposes for which both restricted and unrestricted resources are available. Additionally, the City first uses committed, then assigned, and lastly, unassigned amounts of unrestricted fund balance when expenditures are made. These categories are discussed further below. Governmental Fund Financial Statements: Governmental fund equity is classified as fund balance. Fund balances of the government funds are classified as follows: a) Restricted - Includes fund balance amounts that are constrained for specific purposes which are externally imposed by providers, such as creditors or amounts constrained due to constitutional provisions or enabling legislation. b) Committed - Includes fund balance amounts that are constrained for specific purposes that are internally imposed by the City through formal action of the highest level of decision making authority (ordinance). Only Council action can remove the commitment. FN Page 13 NOTES TO BASIC FINANCIAL STATEMENTS - Continued CITY OF OWASSO, OKLAHOMA YEAR ENDED JUNE 30, 2021 I.D -- Assets, Liabilities, Deferred Outflows /Inflows of Resources, and Net Position /Fund Balance -- Continued c) Assigned - Includes fund balance amounts that are constrained by the City's intent to be used for specific purposes, but are neither restricted nor committed. Intent can be stipulated either through the governing body or by the City Manager to whom the authority has been given by City council action. d) Unassigned - Includes the residual balance, including negative residual balances, of the general fund that have not been assigned to other funds and that have not been restricted, committed, or assigned to specific purposes within the general fund. The general fund is the only fund that can have a positive unassigned balance. I.E -- Infernal and Interfund Balances and Activities In the process of aggregating the financial information for the government -wide statement of net position and statement of activities, some amounts reported as interfund activity and balances in the fund financial statements have been eliminated or reclassified. Government -Wide Financial Statements: Interfund activity and balances, if any, are eliminated or reclassified in the government -wide financial statements as follows: 1. 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. 2. 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 effect of interfund services between funds is not eliminated in the statement of activities. 3. Primary government and component unit activity and balances - resource flows between the primary government (the City, OPWA, and OPGA) and the discretely - presented component unit (the Owasso Economic Development Authority) are reported as if they were external transactions. Fund Financial Statements: Interfund activity, if any, within and among the governmental, proprietary, 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. Interfund loans with repayment periods longer than one year are considered long term advances while the current portion of interfund payables are repayable within one year. 2. Interfund services - sales or purchases of goods and services between funds are reported as revenues and expenditures /expenses. FN Page 14 NOTES TO BASIC FINANCIAL STATEMENTS - Continued CITY OF OWASSO, OKLAHOMA YEAR ENDED JUNE 30, 2021 1.E -- Infernal and Interfund Balances and Activities -- Continued 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: In January 2015, citizens of Owasso voted to increase the 37o sales tax to 3.5070 effective April 1, 2015. The additional half penny is restricted by Ordinance to spending on police, fire, and street functions and is recorded as revenue within the Half -Penny Sales Tax Fund. In January 2016, citizens of Owasso voted to increase the 3.5070 sales tax to 4.0570 effective January 1, 2017 for 7 years. The additional 0.5570 is restricted to street capital projects. The City of Owasso implemented a Tax Incremental Financing (TIF) District effective December 20, 2016. Two percent of the total 4.0570 in sales taxes collected by new businesses locating within the TIF district after December 20, 2016, are recorded in the TIF fund and are restricted to TIF projects. Sales tax is collected by the Oklahoma Tax Commission and remitted to the City in the month following receipt by the Oklahoma Tax Commission. The original 37o sales tax (excluding taxes restricted to TIF projects as described above) is recorded as revenue within the General Fund. Upon receipt, the General Fund distributes the 37o as follows: • 3 cents, less amounts specific to the TIF District, are transferred to the OPWA as required by revenue bond indentures; with 0 1 cent used to retire principal and interest on OPWA debt issued to finance Capital Improvement Fund projects with any remaining sales tax transferred to Capital Improvement Fund, followed by 0 2 cents less all other infrastructure payback agreements is transferred back to the General Fund from the OPWA for operations Sales tax resulting from sales occurring prior to year -end and received by the City after year -end has been accrued and is included under the caption Due from Other Governments because they represent taxes on sales occurring during the reporting period. 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 for any court - assessed judgments. For the current year, the City only levied and collected property taxes for court - assessed judgments. Beginning December 20, 2016, taxes levied by other taxing jurisdictions will be apportioned to the City as related to increases in assessed valuation after that date within the TIF District. For FY 2021, this is not a significant source of revenue for the City. Program Revenues: In the statement of activities, revenues that are derived directly from each activity or from parties outside the City's taxpayers are reported as program revenues. The City has the following program revenues in each activity: General government Cemetery lot sales and internments, zoning fees, other fees, licenses, and permits FN Page 15 NOTES TO BASIC FINANCIAL STATEMENTS - Continued CITY OF OWASSO, OKLAHOMA YEAR ENDED JUNE 30, 2021 1. F -- Revenues, Expenditures, and Expenses -- Continued Public safety Fine and forfeiture revenue, court costs and fees, police and fire reports; operating and capital grants include U.S. Department of Justice and Federal Emergency Management Agency grants Community development Community development fees Recreation and culture Park development fees and community center user fees Economic development Surcharge for economic development Public works Surcharge for streets; operating and capital grants, and contributions from the U.S. Department of Housing and Urban Development, motor fuel and commercial vehicle revenues, and capital contributions from outside sources; stormwater system service charges All other governmental revenues are reported as general. It is important to note that all taxes are classified as general revenue even if restricted for a specific purpose. Expenditures /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. Certain indirect costs are included in the program expense reported for individual functions and activities. 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 -- Pensions and Other Post- Employment Benefits For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the Oklahoma Firefighters Pension & Retirement System ( OFPRS), Oklahoma Police Pension & Retirement System ( OPPRS), and Oklahoma Municipal Retirement Fund (OKMRF), and additions to /deductions from OFPRS, OPPRS and OKMRF's fiduciary net position have been determined on the same basis as they are reported by OFPRS, OPPRS and OKMRF. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments held by these funds are reported at fair value. The liability, as determined by an independent actuarial study, of Other Post - Employment Benefits are related to the health benefits for retired employees. FN Page 16 NOTES TO BASIC FINANCIAL STATEMENTS - Continued CITY OF OWASSO, OKLAHOMA YEAR ENDED JUNE 30, 2021 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 demonstration of its stewardship over City resources follows. 2.A-- Deposits and Investments Laws and Regulations In accordance with state law, all uninsured deposits of municipal funds in financial institutions must be secured with acceptable collateral valued at fair value. Acceptable collateral includes certain U.S. Government or Government Agency securities, certain State of Oklahoma or political subdivision debt obligations, surety bonds, or certain letters of credit. As required by 12 U.S.C.A., 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. As reflected in Note 3.A., the City's uninsured deposits were sufficiently collateralized in accordance with these provisions for the year ended June 30, 2021. Investments of the City are limited by state law to the following: a) Direct obligations of the U.S. Government, its agencies, and instrumentalities to which the full faith and credit of the U.S. Government is pledged, or obligations to the payment of which the full faith and credit of the State of Oklahoma is pledged. Agency securities are not explicitly guaranteed by the U.S. Government, however, there is an implicit guarantee on these securities. b) Certificates of deposit or savings accounts that are either insured or secured with acceptable collateral with in -state financial institutions, and fully insured certificates of deposit or savings accounts in out -of -state financial institutions. c) With certain limitations, negotiable certificates of deposit, prime bankers' acceptances, prime commercial paper, and repurchase agreements with certain limitations. d) County, municipal, or school district tax supported debt obligations, bond or revenue anticipation notes, money judgments, or bond or revenue anticipation notes of public trusts whose beneficiary is a county, municipality, or school district. e) Notes or bonds secured by mortgage or trust deed insured by the Federal Housing Administrator and debentures issued by the Federal Housing Administrator, and in obligations of the National Mortgage Association. f) Money market funds regulated by the SEC and in which investments consist of the investments mentioned in the previous paragraphs a., b., c., and d. Public trusts created under O.S. Title 60, are restricted by policy to the above noted investment limitations. FN Page 17 NOTES TO BASIC FINANCIAL STATEMENTS - Continued CITY OF OWASSO, OKLAHOMA YEAR ENDED JUNE 30, 2021 2.B - -Debt Restrictions and Covenants General Long -Term Debt: As required by the Oklahoma State Constitution, the City, (excluding Public Trusts) may not incur any indebtedness that would require payment from resources beyond the current fiscal year revenue, without first obtaining voter approval. For the year ended June 30, 2021, no such debt was incurred by the City. Revenue Bond and Promissory Note Debt: The various bond and note indentures relating to the revenue bond and promissory note issuances of the OPWA contain a number of restrictions or covenants that are financial related. These include covenants, such as a required flow of funds through special accounts, and revenue bond debt service coverage requirements. The following schedule presents a brief summary of the most significant requirements and the OPWA's level of compliance thereon as of June 30, 2021. a. Revenue Bond Coverage: Net operating revenue for OPWA and OPGA plus pledged sales tax must generate an amount annually equal to 12570 of annual principal and interest requirements on the 2002A, 2009B, 2009C, 2011, 2013 SRF OWRB Note, and 2019 OWRB Note. 2.0 - -Fund Equity /Net Position Restrictions Net revenues available, including sales tax transferred, amounted to $36,471,829. The annual principal and interest on the bonds and any subordinate debt amounted to $8,004,858. Actual coverage was 31770. Deficit Prohibition: 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). For the year ended June 30, 2021, the City had no deficit fund balances. FN Page 18 NOTES TO BASIC FINANCIAL STATEMENTS - Continued CITY OF OWASSO, OKLAHOMA YEAR ENDED JUNE 30, 2021 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, including its blended component units, held the following deposits and investments at June 30, 2021: Deposits Demand deposits Petty cash and change funds Investments Certificates of deposit Money market mutual funds Investment Maturities (in Carrying Credit Years) Value Rating Less than 1 1 -5 $ 54,170,815 n/a $ n/a 11,529 n/a n/a 4,721 ,365 n/a 4,721 ,365 26,174,425 AAAm 26,174,425 Total cash and cash equivalents and investments $ 85,078,134 Reconciliation to Statement of Net Position Cash and cash equivalents $ 47,887,627 Restricted cash 32,469,142 Investments 4,721,365 $ 85,078,134 $ n/a n/a $ 30,895,790 $ - Investments: The City uses a pooled investment concept for all its funds, with the exception of restricted funds in connection with debt securities, to maximize its investment program. Investment income from this internal pooling is allocated to the respective funds based upon the sources of funds invested. The investments of less than one year, above, are classified as cash equivalents in the Statement of Net Position. These money market investments are measured at amortized cost as opposed to their fair value. Investment Credit Risk: The City's investment policy limits investments to those allowed in state law applicable to municipalities. These investment limitations are described in Note 2.A. 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 explicitly guaranteed by the U.S. government are not considered to have credit risk and do not require disclosure of credit quality. As of June 30, 2021, the City's investments were registered in the City's name and held by a counter - party. FN Page 19 NOTES TO BASIC FINANCIAL STATEMENTS - Continued CITY OF OWASSO, OKLAHOMA YEAR ENDED JUNE 30, 2021 3.A-- Deposit and Investment Risks -- Continued As noted in the schedule of deposits and investments above, at June 30, 2021, the City's investment in the money market fund was rated AAAm by Standard and Poor's. 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 discloses its exposure to interest rate risk by disclosing the maturity dates of its various investments. The City has no formal policy related to specific deposit or investment interest rate risk. 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 57o 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, 2021, the City's investments were not subject to concentration of credit risk as defined above. Fair Value Measurements: The City uses the fair value hierarchy established by generally accepted accounting principles based on the valuation inputs used to measure the fair value of the asset. The fair value hierarchy categorizes the inputs to valuation techniques used to measure fair value into three levels. Level 1 inputs are quoted prices (unadjusted) for identical assets or liabilities in active markets that a government can access at the measurement date. Level 2 inputs are inputs - other than quoted prices included within Level 1 - that are observable for an asset or liability, either directly or indirectly. Level 3 inputs are unobservable inputs for an asset or liability. The fair value hierarchy gives the highest priority to Level 1 inputs and the lowest priority to Level 3 inputs. As of June 30, 2021, all of the City's investments are valued using Level 2 inputs. The value is determined using quoted prices for similar assets or liabilities in active markets. Quoted Prices Significant Significant in Active Markets Other Observable Unobservable for Identical Assets Inputs Inputs Total (Level 1) (Level 2) (Level 3) Fair Value Certificates of deposit $ $ 4,721,365 $ $ 4,721,365 $ - $ 4,721,365 $ - $ 4,721,365 FN Page 20 NOTES TO BASIC FINANCIAL STATEMENTS - Continued CITY OF OWASSO, OKLAHOMA YEAR ENDED JUNE 30, 2021 3.A-- Deposit and Investment Risks -- Continued 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. Certificates of deposit are collateralized at 1007o of the amount that is not federally insured. As of June 30, 2021, the City had no deposits exposed to custodial credit risk. The City's policy as it relates to custodial credit risk is to secure its uninsured deposits with collateral, valued at no more than fair value, at least at a level of 1007o of the uninsured deposits and accrued interest thereon, registered in the City's name, and held by its third -party agent. 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.A., 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. The bank balances of the City's deposits totaled $53,654,190 at June 30, 2021. The difference between the carrying amount of deposits and the bank balance is due to outstanding checks and deposits. As of June 30, 2021, the City was not exposed to custodial credit risk as all of the City's deposits were collateralized. Discrete Component Unit: Total bank deposits of $9,439 of the discretely presented component unit were insured with Federal Deposit Insurance Corporation Insurance. Total carrying value of the deposits was $9,439. FN Page 21 NOTES TO BASIC FINANCIAL STATEMENTS - Continued CITY OF OWASSO, OKLAHOMA YEAR ENDED JUNE 30, 2021 3.B-- Accounts Receivable Accounts receivable outstanding at June 30, 2021 consists of the following: Taxes Franchise fees Municipal court fines False alarm fines Occupation tax Utility billings Emergency service billings Misc. accounts receivable Allowance for uncollectible accounts Accounts receivables, net Utility billings Misc. accounts receivable Allowance for uncollectible accounts Accounts receivables, net 3.C-- Restricted Assets Governmental Activities Business -Tvge Activities Owasso Other Internal General Government Service Fund Funds Funds Total $ - $ 58,992 $ - $ 58,992 143,670 143,670 427,984 427,984 45,815 45,815 625 625 201,932 201,932 1,200,359 1,200,359 2,247 828 3,075 (451,303) (404,234) (855,537) $ 169,038 $ 1,057,049 $ 828 $ 1,226,915 Business -Tvge Activities Owasso Owasso Internal Public Works Public Golf Service Authority Authority Funds Total $ 2,474,358 $ 2,474,358 9,444 169 9,613 (725,208) (725,208) $ 1,749,150 $ 9,444 $ 169 $ 1,758,763 The amounts reported as restricted assets of the business -type activities are comprised of cash and investments held by the trustee bank on behalf of the Public Trusts (Authorities) related to their required revenue bond and promissory note accounts as described in Note 2.13 and deposits held for refund. FN Page 22 NOTES TO BASIC FINANCIAL STATEMENTS - Continued CITY OF OWASSO, OKLAHOMA YEAR ENDED JUNE 30, 2021 3.C-- Restricted Assets -- Continued The restricted assets as of June 30, 2021 were as follows: Restricted Cash and Cash Eauivalents 2009B Revenue Note Account: Debt Service Account 2009C Revenue Note Account: 2011 Promissory Note Account: 2013 RC Promissory Note Account: 2016 Revenue Note Trustee Account 2018 Revenue Note Trustee Account: 2019 Promissory Note Trustee Accounts: 2020 Revenue Note Trustee Accounts Deposits held for refund Debt Service Account Debt Service Account Debt Service Account Debt Service Account Debt Service Account Amount $ 367,409 126,843 97,187 105,345 233,701 104,004 Construction Service Account 23,621,072 Debt Service Account 256,775 Construction Service Account 6,674,320 Debt Service Account 95,810 786,676 TOTAL RESTRICTED ASSETS $ 32,469,142 FN Page 23 NOTES TO BASIC FINANCIAL STATEMENTS - Continued CITY OF OWASSO, OKLAHOMA YEAR ENDED JUNE 30, 2021 3.D-- Capital Assets Capital asset activity for the fiscal year ended June 30, 2021 was as follows: FN Page 24 Additions/ Reductions/ June 30, 2020 Transfers Transfers June 30, 2021 Governmental activities: Non - depreciable: Land $ 18,884,266 $ (135,200) $ 18,749,066 Construction in progress 27,725,024 13,908,675 (2,834,177) 38,799,522 Total non - depreciable assets at historical cost 46,609,290 13,908,675 (2,969,377) 57,548,588 Depreciable: Buildings 28,144,090 28,144,090 Improvements 28,085,486 481,772 28,567,258 Machinery and equipment 17,706,128 1,903,421 (298,003) 19,311,546 Infrastructure 126,048,313 2,006,976 128,055,289 Total depreciable assets at historical cost 199,984,017 4,392,169 (298,003) 204,078,183 Less: accumulated depreciation: Buildings (5,543,967) (1,176,651) (6,720,618) Improvements (8,009,338) (1,511,112) (9,520,450) Machinery and equipment (11,376,605) (1,494,842) 287,943 (12,583,504) Infrastructure (58,723,799) (4,435,853) (63,159,652) Total accumulated depreciation (83,653,709) (8,618,458) 287,943 (91,984,224) Net depreciable assets 116,330,308 (4,226,289) (10,060) 112,093,959 Governmental activities capital assets, net $ 162,939,598 $ 9,682,386 $ (2,979,437) $ 169,642,547 Business -type activities: Non - depreciable: Land $ 322,519 $ 322,519 Construction in progress 1,570,655 3,883,965 (1,363,072) 4,091,548 Total non - depreciable assets at historical cost 1,893,174 3,883,965 (1,363,072) 4,414,067 Depreciable: Buildings 2,811,746 2,811,746 Improvements 3,788,013 109,908 3,897, 921 Machinery and equipment 5,220,416 1,576,220 (150,375) 6,646,261 Infrastructure 105,123,524 852,068 105,975,592 Total depreciable assets at historical cost 116,943,699 2,538,196 (150,375) 119,331,520 Less: accumulated depreciation: Buildings (1,962,462) (44,794) (2,007,256) Improvements (2,389,634) (109,033) (2,498,667) Machinery and equipment (3,358,258) (398,945) 144,729 (3,612,474) Infrastructure (45,036,325) (2,749,551) (47,785,876) Total accumulated depreciation (52,746,679) (3,302,323) 144,729 (55,904,273) Net depreciable assets 64,197,020 (764,127) (5,646) 63,427,247 Business -type activities capital assets, net $ 66,090,194 $ 3,119,838 $ (1,368,718) $ 67,841,314 FN Page 24 NOTES TO BASIC FINANCIAL STATEMENTS - Continued CITY OF OWASSO, OKLAHOMA YEAR ENDED JUNE 30, 2021 3.D-- Capital Assets -- Continued Depreciation expense was charged to functions in the statement of activities as follows: Depreciation expense charged to governmental activities: General government $ 541,745 Public safety 2,445,089 Community development 15,067 Culture and recreation 608,121 Economic development 843 Public works 4,981,983 Sub -total 8,592,848 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 25,610 Total Governmental Activities Depreciation Expense $ 8,618,458 Depreciation expense charged to business -type activities: Water $ 1,067,343 Refuse 194,491 Wastewater 1,887,817 Recycle center 8,618 Golf course 144,054 Total Business -Type Activities Depreciation Expense $ 3,302,323 Capital Leases On November 26, 2019, OPGA entered into a lease- purchase agreement with TCF National Bank for equipment to be used at the Bailey Ranch Golf Course. The lease was recorded as a capital lease with the addition of machinery in the amount of $284,915, an interest rate of 3.6970 and a term of 60 months. Payments for principal and interest are due monthly. The net book value of the assets acquired under this agreement is $234,037 as of June 30, 2021. FN Page 25 NOTES TO BASIC FINANCIAL STATEMENTS - Continued CITY OF OWASSO, OKLAHOMA YEAR ENDED JUNE 30, 2021 3.D-- Capital Assets -- Continued The minimum lease payments due under the lease are as follows: 3.E - -Long Term Debt Business -Type Activities Long -Term Debt: As of June 30, 2021, the long -term debt payable from enterprise fund resources consisted of the following: Enterprise Funds Notes Payable: 2002A OWRB Note Payable, dated December 30, 2002, original amount of $886,418 with an administration Principal Interest Total 2022 $ 55,355 $ 7,134 $ 62,489 2023 57,432 5,056 62,488 2024 59,588 2,901 62,489 2025 46,154 713 46,867 Total 1,700,565 2013 Series CWSRF Promissory Note, dated December 2013, original amount not to exceed $3,425,000, fixed interest $ 218,529 $ 15,804 $ 234,333 3.E - -Long Term Debt Business -Type Activities Long -Term Debt: As of June 30, 2021, the long -term debt payable from enterprise fund resources consisted of the following: Enterprise Funds Notes Payable: 2002A OWRB Note Payable, dated December 30, 2002, original amount of $886,418 with an administration fee of 0.5 %, semiannual installments of principal and administration fee, final maturity August 15, 2022. $ 66,481 2009B OWRB Note Payable, dated December 8, 2009, original amount of $10,795,000 with an interest rate of 1.78% plus administration fee of 0.5 %; semiannual installments of principal, interest and adminstration fee; final maturity September 15, 2031 6,065,854 2009C OWRB Note Payable, dated December 8, 2009, original amount of $4,510,000 with an interest rate of 1.75% plus administration fee of 0.5 %; semiannual installments of principal, interest and adminsfrafion fee; final maturity March 15, 2031 2,431,477 201 1 Interim Series OWRB Note Payable, dated November 17, 201 1, original amount of $3,115,000 Wth an interest rate of 2.1 1% plus administration fee of 0.5 %; semiannual installments of principal, interest and adminsfrafion fee; final maturity September 15, 2032. 1,700,565 2013 Series CWSRF Promissory Note, dated December 2013, original amount not to exceed $3,425,000, fixed interest rate of 1.78% plus admin. fee of 0.5% semiannual installments of principal and interest, final maturity March 15, 2026 1,430,045 2019C OWRB Note Payable, dated July 30, 2019, original amount of $23,805,000 with a variable interest rate and semiannual installments of principal and interest; final maturity October 1, 2049. 23,805,000 Total Notes Payable L_25,499,422 Current portion $ 1,383,735 Non - current portion 34,115,687 Net notes payable $ 35,499,422 FN Page 26 NOTES TO BASIC FINANCIAL STATEMENTS — Continued CITY OF OWASSO, OKLAHOMA YEAR ENDED JUNE 30, 2021 3.E - -Long Term Debt -- Continued Business -Type Activities Long -Term Debt, Continued: Enferprise Funds, Confinued Revenue Notes Payable: Series 2016 Sales Tax Revenue Note Payable dated November 15, 2016, issued by Owasso Public Works Authority, secured by pledge of sales tax revenues only, original amount of $21,265,000 with an annual interest rate of 1.94 %, semiannual principal payments varying from $275,000 to $1,395,000 due each June 1 and December 1 with final maturity December 1, 2026 $ 14,585,000 Series 2018 Sales Tax Revenue Note Payable dated May 24, 2018, issued by Owasso Public Works Authority, secured by pledge of sales tax revenues only, original amount of $9,800,000 with an annual interest rate of 2.80 %, semiannual principal payments varying from $425,000 to $975,000 due each June 1 and December 1 with final maturity June 1, 2028 7,570,000 Series 2020 Sales Tax Revenue Note Payable dated April 30, 2020, issued by Owasso Public Works Authority, secured by pledge of sales tax revenues only, original amount of $12,000,000 with an annual interest rate of 2.15 %, semiannual principal varying from $425,000 to $560,000 due each June 1 and December 1 with a final maturity date of June 1, 2032 11,125,000 Total Revenue Notes Payable $ 33,280,000 Current portion $ 4,389,000 Noncurrent portion 28,891,000 Net revenue notes payable $ 33,280,000 Changes in Long -Term Debt: The following is a summary of changes in long -term debt for the year ended June 30, 2021: Governmental Activities: Total OPEB liability Accrued compensated absences Risk management claims liability Net pension liability Total Governmental Activities Business -Type Activities: Total OPEB liability Accrued compensated absences Risk management claims liability Net pension liability Revenue notes payable Notes payable Plus premium on notes payable Deposits subject to refund Capital lease payable - direct obligation Total Business Type Activities Balance June 30, 2020 Additions Deductions Balance Due within June 30, 2021 one year $ 1,626,551 $ 190,700 $ (170,710) $ 1,646,541 $ - 2,196,003 1,729,842 (1,560,659) 2,365,186 1,1 1 1,637 1,069,600 3,887,131 (4,195,272) 761,459 373,115 15,606,901 12,193,628 (6,876,102) 20,924,427 $ 20,499,055 $ 1 8,001 ,301 $ (1 2,802,743) $ 25,697,613 $ 1 ,484,752 $ 350,760 $ 44,395 $ (34,852) $ 360,303 $ - 158,441 161,945 (142,229) 178,157 83,734 973,847 (818,106) 1 55,741 76,314 454,962 1,629,495 (1,323,220) 761,237 37,555,000 (4,275,000) 33,280,000 4,389,000 36,685,343 (1,1 85,921) 35,499,422 1 ,383,735 2,887,746 (98,726) 2,789,020 98,726 735,631 223,657 (172,612) 786,676 212,884 271,881 - (53,352) 218,529 55,355 $ 79,099,764 $ 3,033,339 $ (8,104,018) $ 74,029,085 $ 6,299,748 FN Page 27 NOTES TO BASIC FINANCIAL STATEMENTS - Continued CITY OF OWASSO, OKLAHOMA YEAR ENDED JUNE 30, 2021 3.E - -Long Term Debt -- Continued For the governmental activities, the total OPEB liability, accrued compensated absences liability, and net pension liability are generally liquidated by the general fund. Debt Service Requirements to Maturity - Primary Government: The annual debt service requirements to maturity for long -term debt as of June 30, 2021 are as follows: Pledged Revenues: The City has pledged proceeds from a 27o sales tax, along with revenues from water, wastewater, sanitation, and golf, to repay the 2002A, 2009B, 2009C, 2011, 2013, and 2019 SRF OWRB notes payable. The notes are payable through 2049 and were used to finance various OPWA projects. The total principal and interest payable for the remainder of the term of the notes is $54,706,672. Pledged revenue received in the current year totaled $36,471,829. Debt service payments of $2,535,370, for the current year were 770 of pledged revenue. The City has also pledged proceeds from a ITo sales tax to repay the 2016, 2018, and 2020 Sales Tax Revenue notes. The notes are payable through 2032 and were used to finance an OPWA project as well as the new Fire Station, Police Station Remodel, and other street and stormwater projects. The total principal and interest payable for the remainder of the term of the notes is $36,420,864. Pledged revenue received in the current year totaled $9,774,437. Debt service payments of $5,089,614 for the current year were 5270 of pledged revenue. FN Page 28 Business -Type Activities Revenue Note Payable Notes Payable Year Ending June 30, Principal Interest Principal Interest 2022 $ 4,389,000 $ 710,403 $ 1,383,735 $ 1,328,464 2023 4,482,000 614,774 1,619,156 1,288,927 2024 4,581,000 516,948 1,644,732 1,239,840 2025 4,681,000 416,984 1,699,605 1,185,563 2026 4,784,000 314,812 1,757,193 1,127, 624 2027 -2031 9,248,000 548,937 8,129,409 4,770,929 2032 -2036 1,115,000 18,006 4,340,592 3,532,253 2037 -2041 4,615,000 2,662,550 2042 -2046 5,647,500 1,634,595 2047 -2050 4,662,500 436,505 $ 33,280,000 $ 3,140,864 $ 35,499,422 $ 19,207,250 Pledged Revenues: The City has pledged proceeds from a 27o sales tax, along with revenues from water, wastewater, sanitation, and golf, to repay the 2002A, 2009B, 2009C, 2011, 2013, and 2019 SRF OWRB notes payable. The notes are payable through 2049 and were used to finance various OPWA projects. The total principal and interest payable for the remainder of the term of the notes is $54,706,672. Pledged revenue received in the current year totaled $36,471,829. Debt service payments of $2,535,370, for the current year were 770 of pledged revenue. The City has also pledged proceeds from a ITo sales tax to repay the 2016, 2018, and 2020 Sales Tax Revenue notes. The notes are payable through 2032 and were used to finance an OPWA project as well as the new Fire Station, Police Station Remodel, and other street and stormwater projects. The total principal and interest payable for the remainder of the term of the notes is $36,420,864. Pledged revenue received in the current year totaled $9,774,437. Debt service payments of $5,089,614 for the current year were 5270 of pledged revenue. FN Page 28 NOTES TO BASIC FINANCIAL STATEMENTS - Continued CITY OF OWASSO, OKLAHOMA YEAR ENDED JUNE 30, 2021 3.F-- interfund Balances and Activities Due to /from balances at June 30, 2021 consist of elimination of short -term negative pooled cash, sales tax per debt indentures, capital improvements, debt service, TIF revenues to OPWA and garage billings. Interfund receivables and payables at June 30, 2021 consist of the following: Due To Governmental Funds: Major funds Capital improvement fund Total Governmental Funds Enterprise Funds: Major funds OPWA Total Enterprise Funds Internal Service Funds City Garage Total Internal Service Funds Due From Half -Penny Nonmajor Govt'I. Total General Fund Sales Tax Fund Funds OPWA $ 1,007,808 $ $ - $ - $ 1,007,808 1,007,808 - - 1,007,808 1 ,358,035 1 ,297,369 - 60,666 - 1 ,358,035 1 ,297,369 - 60,666 - 18,864 2,351 11,370 258 4,885 18,864 2,351 11,370 258 4,885 Total Primary Government $ 2,384,707 $ 1,299,720 $ 11,370 60,924 $ 1,012,693 FN Page 29 NOTES TO BASIC FINANCIAL STATEMENTS - Continued CITY OF OWASSO, OKLAHOMA YEAR ENDED JUNE 30, 2021 3.F-- Interfund Balances and Activities -- Continued Interfund transfers are performed to subsidize Owasso Public Golf Authority operations, for pledged sales tax per debt indentures for OPWA, for general fund and capital improvements fund operations after paybacks, for general fund sales taxes due to streets, TIF revenues to OPWA and for debt service. Interfund transfers for the year ended June 30, 2021 consist of the following: Transfer To Governmental Funds: Major Funds General Fund Half -Penny Sales Tax Fund Capital Improvement Fund Total Government Funds Enterprise Funds: Major Funds OPWA OPGA Total Enterprise Funds Total Primary Government NOTE 4- -OTHER NOTES 4.A-- Employee Pension Plans Transfer From Nonmajor Govt'I Total General Fund Funds OPWA $ 19,336,838 $ - $ - $ 19,336,838 929,515 929,515 - - 8,370,932 - - 8,370,932 28,637,285 929,515 - 27,707,770 29,842,664 29,172,059 670,605 - 3,094,578 2,768,377 - 326,201 32,937,242 31,940,436 670,605 326,201 $ 61 ,574,527 $ 32,869,951 $ 670,605 $ 28,033,971 The City participates in four employee pension systems as follows: Name of Plan /System Type of Plan Oklahoma Firefighters' Pension and Cost - Sharing Multiple Employers' Public Retirement System Employee Retirement System - Defined Benefit Plan Oklahoma Police Pension and Retirement Cost - Sharing Multiple Employers' Public System Employee Retirement System - Defined Benefit Plan Oklahoma Municipal Retirement Fund Agent Multiple Employer Defined Benefit Plan (OKMRF) Oklahoma Municipal Retirement System Agent Multiple Employer Defined Contribution Master Defined Contribution Plan (OMRF) Plan FN Page 30 NOTES TO BASIC FINANCIAL STATEMENTS – Continued CITY OF OWASSO, OKLAHOMA YEAR ENDED JUNE 30, 2021 4.A-- Employee Pension Plans -- Continued Deferred Outflows Deferred Inflows Net Pension Liability Pension Expense Firefighter's Pension System $ 5,260,786 $ 859,284 $ 17,824,128 $ 3,132,904 Police Pension System 2,333,010 386,812 1,348,163 1,599,964 Oklahoma Municipal Retirement Fund Plan 2,130,407 22,019 2,513,373 1,122,278 Totals $ 9,724,203 $ 1,268,115 $ 21,685,664 $ 5,855,146 Reconciliation to government -wide financial statements: Governmental $ 9,081,494 $ 1,261,430 $ 20,924,427 $ 5,509,847 Business -type 642,709 6,685 761,237 345,299 Total deferred outflows of resources $ 9,724,203 $ 1,268,115 $ 21,685,664 $ 5,855,146 Oklahoma Firefighters Pension & Retirement System ( OFPRS) Plan description - The City of Owasso, as the employer, participates in the Firefighters Pension & Retirement System —a cost - sharing multiple - employer defined benefit pension plan administered by the Oklahoma Firefighters Pension and Retirement System ( OFPRS). Title 11 of the Oklahoma State Statutes, through the Oklahoma Legislature, grants the authority to establish and amend the benefit terms to the OFPRS. OFPRS issues a publicly available financial report that can be obtained at www.ok.aov /FPRS. Benefits provided - OFPRS provides retirement, disability, and death benefits to members of the plan. Benefits for members hired prior to November 1, 2013 are determined as 507o of the employee's final average compensation for employees who have reached the age of 50 or have completed 20 years of service, whichever is later. For volunteer firefighters, the monthly pension benefit for normal retirement is $150.60 per month. Benefits vest with 10 years or more of service. Benefits for members hired after November 1, 2013 are determined as 557o of the employee's final average compensation for employees who have reached the age of 50 or have completed 22 years of service, whichever is later. For volunteer firefighters, the monthly pension benefit for normal retirement is $165.66 per month. Benefits vest with 1 1 years or more of service. FN Page 31 NOTES TO BASIC FINANCIAL STATEMENTS - Continued CITY OF OWASSO, OKLAHOMA YEAR ENDED JUNE 30, 2021 4.A-- Employee Pension Plans -- Continued Oklahoma Firefighters Pension & Retirement System ( OFPRS)-- Continued All firefighters are eligible for immediate disability benefits. For paid firefighters, the disability in- the - line -of -duty benefit for firefighters with less than 20 years of service is equal to 5070 of final average monthly compensation, based on the most recent 30 months of service. For firefighters with over 20 years of service, a disability in- the - line -of -duty is calculated based on 2.570 of final average monthly compensation, based on the most recent 30 months, per year of service, with a maximum of 30 years of service. For disabilities not -in- the - line -of -duty, the benefit is limited to only those with less than 20 years of service and is 5070 of final average monthly compensation, based on the most recent 60 -month salary as opposed to 30 months. For volunteer firefighters, the not -in- line -of -duty disability is also limited to only those with less than 20 years of service and is $7.53 per year of service. For volunteer firefighters, the in- line -of -duty pension is $150.60 with less than 20 years of service, or $7.53 per year of service, with a maximum of 30 years. A $5,000 lump sum death benefit is payable to the qualified spouse or designated recipient upon the participant's death. The $5,000 death benefit does not apply to members electing the vested benefit. OFPRS Contributions - The contributions requirements of the Plan are at an established rate determined by Oklahoma Statute and are not based on actuarial calculations. Employees are required to contribute 97o of their annual pay. Participating cities are required to contribute 1470 of the employees' annual pay. FY 2021 contributions to the pension plan from the City were $709,866 and are reflected as deferred outflows of resources. The State of Oklahoma also made on- behalf contributions to OFPRS in the amount of $1,498,831, which are reflected as revenue and expense in the governmental funds. These on- behalf payments did not meet the criteria of a special funding situation. Pension Liabilities, Pension Expense, and Deferred Inflows and Outflows of Resources Related to Pensions - At June 30, 2021, the City reported a liability of $17,824,128 for its proportionate share of the OFPRS net pension liability. The net pension liability was measured as of June 30, 2020, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of July 1, 2020. 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, 2020. Based upon this information, the City's proportion was 1.44686570 (up from 1.374367570 in FY 2020). FN Page 32 NOTES TO BASIC FINANCIAL STATEMENTS — Continued CITY OF OWASSO, OKLAHOMA YEAR ENDED JUNE 30, 2021 4.A-- Employee Pension Plans -- Continued Oklahoma Firefighters Pension & Retirement System (OFPRS)-- Continued For the year ended June 30, 2021, the City recognized a pension expense of $3,132,904. At June 30, 2021, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Differences between expected and actual experience Net difference between projected and actual earnings on pension plan investments Changes in proportion Change in assumptions City contributions subsequent to the measurement date Total Deferred Outflows Deferred Inflows of Resources of Resources $ 2,986,919 $ (239,156) 261,994 1,302,007 (318,080) (302,048) 709,866 $ 5,260,786 $ (859,284) The $709,866 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, 2022. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: FN Page 33 Amortization Year ended June 30: Expense 2022 $ 904,226 2023 1,174,279 2024 992,543 2025 620,588 Total $ 3,691,636 FN Page 33 NOTES TO BASIC FINANCIAL STATEMENTS - Continued CITY OF OWASSO, OKLAHOMA YEAR ENDED JUNE 30, 2021 4.A-- Employee Pension Plans -- Continued Oklahoma Firefighters Pension & Retirement System (OFPRS)-- Continued Actuarial Assumptions -The total pension liability was determined by an actuarial valuation as of July 1, 2020, using the following actuarial assumptions, applied to all prior periods included in the measurement: Inflation: 2.7570 Salary increases: 2.7570 to 10.5070 Investment rate of return: 7.5070 net of pension plan investment expenses Mortality rates for active members were based on Pub -2010 Public Safety Table with generational mortality improvement using MP -2018. Mortality rates for retired members were based on Pub -2010 Public Safety Below Median Table with generational mortality improvement using ScaleMP -2018. Mortality rates for disabled members were based on Pub -2010 Public Safety Disabled Table set forward two years. The actuarial assumptions used in the July 1, 2020 valuation are based on the results of an actuarial experience study for the period July 1, 2013 to July 30, 2018. 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. 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, 2020, are summarized in the following table: FN Page 34 Target Long -Term Expected Asset Class Allocation Real Rate of Return Fixed income 20% 4.38% Domestic equity 42% 7.41% International equity 15% 9.82% Real estate 10% 7.70% Other assets 13% 5.67% FN Page 34 NOTES TO BASIC FINANCIAL STATEMENTS - Continued CITY OF OWASSO, OKLAHOMA YEAR ENDED JUNE 30, 2021 4.A-- Employee Pension Plans -- Continued Oklahoma Firefighters Pension & Retirement System (0FP RS) -- Continued Discount Rate - The discount rate used to measure the total pension liability was 7.57o. 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 statutes. Projected cash flows also assume the State of Oklahoma will continue contributing a percentage of the insurance premium, as established by statute. Prior to July 1, 2020, OFPRS was allocated 3670 of the statewide insurance premium tax. The State of Oklahoma recently passed legislation that changed the allocation to 25.27o as of September 1, 2020; 27.07o as of July 1, 2021; 39.67o as July 1, 2022; and 36.07o as of July 1, 2027. In addition, OFPRS is scheduled to receive $81,250 each year from July 1, 2022 through June 30, 2027. 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 City calculated using the discount rate of 7.57o, 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 (6.57o) or 1- percentage -point higher (8.57o) than the current rate: 1 % Decrease Current Discount 1% Increase (6.5 %) Rate (7.5 %) (8.5 %) Employer's net pension liability $ 23,147,903 $ 17,824,128 $ 13,369,929 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 OFPRS which can be located at www.ok.gov /FPRS . FN Page 35 NOTES TO BASIC FINANCIAL STATEMENTS - Continued CITY OF OWASSO, OKLAHOMA YEAR ENDED JUNE 30, 2021 4.A-- Employee Pension Plans -- Continued Oklahoma Police Pension and Retirement System ( OPPRS) Plan description - The City of Owasso, as the employer, participates in the Oklahoma Police Pension and Retirement Plan - a cost - sharing multiple - employer defined benefit pension plan administered by the Oklahoma Police Pension and Retirement System ( OPPRS). The plan covers substantially all persons employed as full -time police officers working more than 25 hours per week or any person undergoing police training to become a permanent police officer with a police department of a participating Oklahoma employer or State agency, with ages not less than 21 nor more than 45 when accepted for membership. Title 11 of the Oklahoma State Statutes, through the Oklahoma Legislature, grants the authority to establish and amend the benefit terms to the OPPRS. OPPRS issues a publicly available financial report that can be obtained at www.ok.aov /OPPRS. Benefits Provided - OPPRS provides retirement, disability, and death benefits to members of the plan. The normal retirement date under the Plan is the date upon which the participant completes 20 years of credited service, regardless of age. Participants become vested upon completing 10 years of credited service as a contributing participant of the Plan. No vesting occurs prior to completing 10 years of credited service. Participants' contributions are refundable, without interest, upon termination prior to normal retirement. Participants who have completed 10 years of credited service may elect a vested benefit in lieu of having their accumulated contributions refunded. If the vested benefit is elected, the participant is entitled to a monthly retirement benefit commencing on the date the participant reaches 50 years of age or the date the participant would have had 20 years of credited service had employment continued uninterrupted, whichever is later. Monthly retirement benefits are calculated at 2.57o of the final average salary (defined as the average paid base salary of the officer over the highest 30 consecutive months of the last 60 months of credited service) multiplied by the years of credited service, with a maximum of 30 years of credited service considered. Monthly benefits for participants due to permanent disability incurred in the line of duty are 2.57o of the participants' final average salary multiplied by 20 years. This disability benefit is reduced by stated percentages for partial disability based on the percentage of impairment. After 10 years of credited service, participants who retire due to disability incurred from any cause are eligible for a monthly benefit based on 2.57o of their final average salary multiplied by the years of service. This disability benefit is also reduced by stated percentages for partial disability based on the percentage of impairment. Effective July 1, 1998, once a disability benefit is granted to a participant, that participant is no longer allowed to apply for an increase in the dollar amount of the benefit at a subsequent date. Survivor's benefits are payable in full to the participant's beneficiary upon the death of a retired participant. The beneficiary of any active participant killed in the line of duty is entitled to a pension benefit. FN Page 36 NOTES TO BASIC FINANCIAL STATEMENTS - Continued CITY OF OWASSO, OKLAHOMA YEAR ENDED JUNE 30, 2021 4.A-- Employee Pension Plans -- Continued Oklahoma Police Pension and Retirement System ( OPPRS)-- Continued OPPRS Contributions - The contribution requirements of the Plan are at an established rate determined by the Oklahoma Statute and are not based on actuarial calculations. Employees are required to contribute 870 of their annual pay. Municipalities are required to contribute 1370 of the employees' annual pay. FY 2021 contributions to the pension plan from the City were $564,195 and are reflected as deferred outflows of resources. The State of Oklahoma also made on- behalf contributions to OPPRS in the amount of $473,023 which are reflected as revenue and expense in the governmental fund statements. These on- behalf payments did not meet the criteria of a special funding situation. Pension Liabilities, Pension Expense, and Deferred Inflows and Outflows of Resources Related to Pensions - At June 30, 2021, the City reported a liability of $1,348,163 for its proportionate share of the OPPRS net pension liability. The net pension liability was measured as of June 30, 2020, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of July 1, 2020. 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, 2020. Based upon this information, the City's proportion was 1.1739 70 (up from 1.13057o in FY 2020). For the year ended June 30, 2021, the City recognized a pension expense of $1,599,964. At June 30, 2021, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Differences between expected and actual experience Net difference between projected and actual earnings on pension plan investments Changes in proportion Changes in assumptions City contributions subsequent to the measurement date Total Deferred Outflows of Resources Deferred Inflows of Resources $ 34,878 $ (366,124) 1,590,623 4,818 (20,688) 138,496 564,195 $ 2,333,010 $ (386,812) FN Page 37 NOTES TO BASIC FINANCIAL STATEMENTS - Continued CITY OF OWASSO, OKLAHOMA YEAR ENDED JUNE 30, 2021 4.A-- Employee Pension Plans -- Continued Oklahoma Police Pension and Retirement System (OPPRS)-- Continued The $564,195 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, 2022. Other amounts 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: 2022 2023 2024 2025 2026 Total Amortization Expense $ 193,490 402,140 516,363 298,469 (28,459) $ 1,382,003 Actuarial Assumptions -The total pension liability was determined by an actuarial valuation as of July 1, 2020, using the following actuarial assumptions, applied to all prior periods included in the measurement: Inflation: 2.7570 Salary increases: 3.570 to 107o average Investment rate of return: 7.570 net of pension plan investment expense Mortality Rates: Active employees (pre- retirement) RP -2000 Combined Blue Collar Healthy Employees (generational using Scale AA) with age set back four years Active employees (post- retirement) and nondisabled pensioners: RP -2000 Combined Blue Collar Healthy Employees (generational using Scale AA) Disabled pensioners: RP -2000 Combined Blue Collar Healthy Employees with age set forward four years (no generational Improvement) The actuarial assumptions used in the July 1, 2020 valuation were based on the results of an actuarial experience study for the period July 1, 2012 to June 30, 2017. FN Page 38 NOTES TO BASIC FINANCIAL STATEMENTS - Continued CITY OF OWASSO, OKLAHOMA YEAR ENDED JUNE 30, 2021 4.A-- Employee Pension Plans -- Continued Oklahoma Police Pension and Retirement System (OPPRS)-- Continued 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. 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, 2020, are summarized in the following table: Asset Class Fixed income Domestic equity International equity Real estate Private equity Target Allocation 25% 40% 10% 10% 15% Long -Term Expected Real Rate of Return 5.11% 6.80% 11.45% 8.60% 11.58% Discount Rate - The discount rate used to measure the total pension liability was 7.570. 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 statutes. Projected cash flows also assume the State of Oklahoma will continue contributing 1470 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. FN Page 39 NOTES TO BASIC FINANCIAL STATEMENTS - Continued CITY OF OWASSO, OKLAHOMA YEAR ENDED JUNE 30, 2021 4.A-- Employee Pension Plans -- Continued Oklahoma Police Pension and Retirement System (OPPRS)-- Continued Sensitivity of the Net Pension (Asset) Liability to Changes in the Discount Rate -The following presents the net pension liability of the City calculated using the discount rate of 7.570, as well as what the Plan's net pension liability (asset) would be if it were calculated using a discount rate that is 1- percentage point lower (6.570) or 1- percentage -point higher (8.570) than the current rate: Employer's net pension liability (asset) 1 % Decrease Current Discount 1 % Increase (6.570) Rate (7.570) (8.570) $ 4,762,516 $ 1,348,163 $ (1,539,661) 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. Oklahoma Municipal Retirement Fund - Defined Benefit Plan Plan Description - Effective July 1, 1972, the City began contributing to the City of Owasso and Owasso Public Works Authority Plan and Trust in the form of The Oklahoma Municipal Retirement System Master Defined Benefit Plan and Trust ( OKMRF) an agent multiple employer defined benefit plan, for all eligible employees except for those covered by the Police and Firefighter Pension Systems. The City currently participates in the AA OKMRF plan. Administration of the City's individual plan rests with the City Council. The overall operations of OKMRF are supervised by a nine - member Board of Trustees elected by the participating municipalities. JP Morgan Chase Bank, N.A. of Oklahoma City acts as administrator and securities custodian. OKMRF issues separate plan financial statements which may be obtained by contacting the Oklahoma Municipal Retirement Fund, 100 N. Broadway, Oklahoma City, Oklahoma 73102. Summary of Significant Accounting Policies - For purposes of measuring the net pension liability, deferred outflows and inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the City's plan and additions to /deductions from the City's fiduciary net position have been determined on the same basis as they are reported by OKMRF. For this purpose, benefit payments are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value based on published market prices. Detailed information about the OKMRF plans' fiduciary net position is available in the separately issued OKMRF financial report. FN Page 40 NOTES TO BASIC FINANCIAL STATEMENTS — Continued CITY OF OWASSO, OKLAHOMA YEAR ENDED JUNE 30, 2021 4.A-- Employee Pension Plans -- Continued Oklahoma Municipal Retirement Fund - Defined Benefit Plan -- Continued Eliciibility Factors and Benefit Provisions — Provisions OKMRF Plan a. Eligible to Participate All regular, full -time employees except police, firefighters, and other employees covered under an approved system. b. Period Required to Vest 5 years of credited service c. Eligibility for Distribution - Normal retirement at age 65 with 5 years of service or age 62 with 30 years of service - Early retirement at age 55 with 5 years of service - Disability retirement upon disability with 5 years of service - Death benefit with 5 years of service d. Benefit Determination Base Final average salary -the average of the five highest consecutive annual salaries out of the last 10 calendar years of service e. Benefit Determination Methods: - Normal Retirement 2.625% of final average salary multiplied by credited years of service - Early Retirement The accrued benefit payable starting at a normal retirement age, or the accrued benefit reduced by 5% per year for commencement prior to retirement age - Disability Retirement Same as normal retirement - Death Benefit 50% of employee's accrued benefit, but terminate upon spouse re- marriage - Prior to 5 Years Service Return of employee contributions with accrued interest f. Benefit Authorization Benefits are established and amended by City Council adoption of an ordinance in accordance with O.S. Title 11, Section 48- 101 -102 g. Form of Benefit Payments Normal form is a monthly lifetime annuity with 5 years certain FN Page 41 NOTES TO BASIC FINANCIAL STATEMENTS - Continued CITY OF OWASSO, OKLAHOMA YEAR ENDED JUNE 30, 2021 4.A-- Employee Pension Plans -- Continued Oklahoma Municipal Retirement Fund - Defined Benefit Plan -- Continued Employees Covered by Benefit Terms - Active employees 154 Deferred Vested Former Employees 25 Retirees or Retiree Beneficiaries 42 Disabled Participants 3 Total 224 Contribution Requirements - The City Council has the authority to set and amend contribution rates by ordinance for the OKMRF defined benefit plan in accordance with O.S. Tile 11, Section 48 -102. The contribution rates for the current fiscal year have been made in accordance with an actuarially determined rate. The actuarially determined rate is 8.9170 of covered payroll. Employees are required to contribute 4.2670 of their annual pay. FY 2021 contributions to the pension plan from the City were $763,618. FN Page 42 NOTES TO BASIC FINANCIAL STATEMENTS — Continued CITY OF OWASSO, OKLAHOMA YEAR ENDED JUNE 30, 2021 4.A-- Employee Pension Plans -- Continued Oklahoma Municipal Retirement Fund - Defined Benefit Plan -- Continued Actuarial Assumptions - Date of Last Actuarial Valuation a. Actuarial Cost Method b. Rate of Return on Investments c. Projected Salary Increase July 1, 2020 Entry age normal cost method 7.50% Ranges between 4.5% and 7.5% d. Post Retirement Cost -of- Living Increase N/A e. Inflation Rate f. Mortality Table g. Percent of married employees h. Spouse age difference 2.75% inflation included in projected salary increase. PubG -2010 with projected mortality improvement 100% 3 years (female spouses younger) i. Turnover Select and ultimate rates Ultimate rates are age - related as shown Additional rates per thousand are added during the first 5 years: Year 1: 225 Year 2: 140 Year 3: 100 Year 4: 70 Year 5:40 j. Date of last experience study September 2017 for fiscal years 2012 through 2016 FN Page 43 NOTES TO BASIC FINANCIAL STATEMENTS - Continued CITY OF OWASSO, OKLAHOMA YEAR ENDED JUNE 30, 2021 4.A-- Employee Pension Plans -- Continued Oklahoma Municipal Retirement Fund - Defined Benefit Plan -- Continued Discount Rate - The discount rate used to value benefits was the long -term expected rate of return on plan investments, 7.5070 since the plan's fiduciary position is projected to be sufficient to make projected benefit payments. 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. Thus, 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 (2.7570). Best estimates of arithmetic real rates of return for each major asset class included in the pension plan's target allocation as of July 1, 2020, are summarized in the following table: Target Allocation Real Return Weighted Return Large cap stocks 25% 5.80% 1.45% Small /mid cap stocks 10% 6.40% 0.64% Long /short equity 10% 5.00% 0.50% International stocks 20% 6.20% 1.24% Fixed income bonds 30% 2.30% 0.69% Real estate 5% 4.60% 0.23% 100% Average Real Return 4.75% Inflation 2.75% Long -term expected return 7.50% FN Page 44 NOTES TO BASIC FINANCIAL STATEMENTS — Continued CITY OF OWASSO, OKLAHOMA YEAR ENDED JUNE 30, 2021 4.A-- Employee Pension Plans -- Continued Oklahoma Municipal Retirement Fund - Defined Benefit Plan -- Continued Changes in Net Pension Liability — The total pension liability was determined based on an actuarial valuation performed as of July 1, 2020, which is also the measurement date. There were no changes in assumptions or changes in benefit terms that affected measurement of the total pension liability. The following table reports the components of changes in net pension liability: Balance at June 30, 2020 Changes for the year: Service cost Interest cost Differences between expected and actual experience Contributions - employer (participating cities) Contributions - employee Net investment income Benefit payments, including refunds Administrative expense Net changes Balance at June 30, 2021 Total Pension Plan Fiduciary Net Net Pension Liability Position (Asset) Liability (a) (b) (a) - (b) $ 20,2981165 $ 18,758,772 $ 1,539,393 841,741 - 841,741 1,501,016 - 1,501,016 419,861 - 419,861 - 687,855 (687,855) - 345,957 (345,957) - 794,207 (794,207) (579,704) (579,704) - (39,381) 39,381 2,182,914 1,208,934 973,980 $ 22,481,079 $ 19,967,706 $ 2,513,373 Sensitivity of the Net Pension Liability to Changes in the Discount Rate - The following presents the net pension liability of the City calculated using the discount rate of 7.57o, as well as what the Plan's net pension liability (asset) would be if it were calculated using a discount rate that is 1- percentage point lower (6.57o) or 1- percentage -point higher (8.57o) than the current rate: Employer's net pension liability (asset) 1 % Decrease Current Discount 1 % Increase (6.5 %) Rate (7.5 %) (8.5 %) $ 5,841,019 $ 2,513,373 $ (204,278) FN Page 45 NOTES TO BASIC FINANCIAL STATEMENTS - Continued CITY OF OWASSO, OKLAHOMA YEAR ENDED JUNE 30, 2021 4.A-- Employee Pension Plans -- Continued Oklahoma Municipal Retirement Fund - Defined Benefit Plan -- Continued Pension Liabilities, Pension Expense, and Deferred Inflows and Outflows of Resources Related to Pensions - At June 30, 2021, the City reported a net pension liability of $2,513,373 for the OKMRF pension. The net pension liability was measured as of July 1, 2020, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of July 1, 2020. For the year ended June 30, 2021, the City recognized pension expense of $1,122,278. At June 30, 2021, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Differences between expected and actual experience Change of assumptions Net difference between projected and actual earnings on pension plan investments City contributions subsequent to the measurement date Total Deferred Outflows Deferred Inflows of Resources of Resources $ 498,353 $ (22,019) 433,796 - 434,640 - 763,618 $ 2,130,407 $ (22,019) FN Page 46 NOTES TO BASIC FINANCIAL STATEMENTS - Continued CITY OF OWASSO, OKLAHOMA YEAR ENDED JUNE 30, 2021 4.A-- Employee Pension Plans -- Continued Oklahoma Municipal Retirement Fund - Defined Benefit Plan -- Continued The $763,618 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, 2022. Other amounts reported deferred inflows of resources related to pensions will be recognized in pension expense as follows: Amortization Year ended June 30: Expense 2022 $ 327,311 2023 444,698 2024 296,912 2025 244,750 2026 31,099 Total $ 1,344,770 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 OKMRF; which can be located at www.okmrf.ora. Oklahoma Municipal Retirement System Master Defined Contribution Plan (OMRF) Plan Description - The City has also provided a defined contribution plan and trust known as the City of Owasso Plan and Trust in the form of The Oklahoma Municipal Retirement System Master Defined Contribution Plan (OMRF). OMRF operations are supervised by a nine - member Board of Trustees elected by the participating municipalities. The plan is administered by JP Morgan Chase Bank, N.A. The defined contribution plan is available to all full -time employees. Benefits depend solely on amounts contributed to the plan plus investment earnings. Employees are eligible to participate upon hire, and may make contributions to the plan. OMRF Contributions - Based upon employee contributions, the City's contributions vary from 07o -17o of covered payroll. The City's contributions for each employee (and interest allocated to the employee's account) are vested at a rate of 4070 after two years and then 2070 per year for the next three years. The employee is fully vested after 5 years of service. City contributions for, and interest forfeited by, employees who leave employment prior to fully vesting are allocated back to the City. The authority to establish and amend the provisions of the plan rests with the City Council. FN Page 47 NOTES TO BASIC FINANCIAL STATEMENTS - Continued CITY OF OWASSO, OKLAHOMA YEAR ENDED JUNE 30, 2021 4.A-- Employee Pension Plans -- Continued Oklahoma Municipal Retirement System Master Defined Contribution Plan (OMRF)-- Continued For the year ended June 30, 2021, the following amounts related to the defined contribution plan: Employee contributions $225,269 City contributions $112,634 Employees have the option to make additional contributions to an ICMARC administered tax - sheltered annuity program up to the exclusion allowance provided under the IRC under Code Section 457. 4.B- -Other Post- Employment Benefits Plan Description - The City of Owasso Retiree Health Plan, "Plan" a single - employer, health care plan provides OPEB for non - public safety employees retired after age 55 with 5 years of service and public safety employees retired with 20 years of service without regard to age and their eligible children and spouse. The Plan is administered by the City of Owasso (City) and the City has the authority to establish or amend the Plan provisions or contribution. No assets are accumulated in a trust that meets the criteria in paragraph 4 of Statement 75. The Plan does not issue a stand -alone financial report. Benefits Provided: Health, dental, and vision benefits - The City provides healthcare benefits for retirees and their dependents. The retiree pays 10070 of the applicable coverage contribution rate. The contribution rate for non - Medicare - eligible retirees is the current active employee COBRA contribution rate. Medical benefits are provided a self- funded plan administered by Aetna. A non - subsidized Medicare supplement is provided by the City for retirees 65 and older with the full premium paid by the retiree. Employees covered by benefit terms: At June 30, 2021, the following employees were covered by the benefit terms: Inactive employees currently receiving benefits 3 Active employees not yet receiving benefits 279 Total 282 Total OPEB Liability - The City of Owasso total OPEB liability of $2,006,844 was measured as of June 30, 2021 and was determined by an actuarial valuation as of that date. Other postemployment liabilities attributable to governmental activities are generally liquidated by the General Fund. FN Page 48 NOTES TO BASIC FINANCIAL STATEMENTS - Continued CITY OF OWASSO, OKLAHOMA YEAR ENDED JUNE 30, 2021 4.B- -Other Post- Employment Benefits -- Continued Actuarial Methods and Assumptions - The total OPEB liability in the June 30, 2021 actuarial valuation was determined using the following actuarial assumptions and other inputs, applied to all periods included in the measurement, unless otherwise specified: a. Inflation 2.50% b. Salary Increases 3.50% c. Discount Rate - 2.16% Based on Bond Pay GO -20 bond Index d. Healthcare Cost Trend Rate 4.50% e. Retirees' Share of Benefit - related Costs 41.56% f. Mortality Rates - RPH -2014 Total Table with Projection MP -2020 The actuarial assumptions used in the June 30, 2021 valuation were based on the results of an actuarial experience study for the twelve -month period ending June 30, 2021. Changes in the Total OPEB Liability - Total OPEB Liability Balance as of July 1, 2020 $ 1,977,311 Changes for the year: Service Cost 175,547 Interest 47,018 Differences between expected and actual experience (154,841) Changes in assumptions or other inputs 12,530 Benefit payments (50,721) Net changes 29,533 Balance as of June 30, 2021 $ 2,006,844 FN Page 49 NOTES TO BASIC FINANCIAL STATEMENTS - Continued CITY OF OWASSO, OKLAHOMA YEAR ENDED JUNE 30, 2021 4.B- -Other Post- Employment Benefits -- Continued Sensitivity of the total OPEB liability to changes in the discount rate - The following presents the total OPEB liability of the City of Owasso, as well as what the City's approximate total OPEB liability would be if it were calculated using a discount rate that is 1- percentage -point lower (1.1670) or 1- percentage -point higher (3.1670) than the current discount rate: ITo Decrease Discount Rate 1 T Increase 1.1670 2.1670 3.1670 Total OPEB Liability $ 2,221,546 $ 2,006,844 $ 1,813,591 Sensitivity of the total OPEB liability to chanaes in the healthcare cost trend rates - The following presents the total OPEB liability of the City of Owasso, as well as what the City's total OPEB liability would be if it were calculated using healthcare cost trend rates that are 1- percentage -point lower (3.5070) or 1- percentage -point higher (5.5070) than the current trend rate: Health Care Cost Trend 170 Decrease Rate 170 Increase 3.50% 4.50% 5.50% Total OPEB Liability $ 1,737,057 $ 2,006,844 $ 2,330,731 OPEB Expense and deferred outflows of resources and deferred inflows of resources related to OPEB - For the year ended June 30, 2021 the City of Owasso recognized OPEB expense of $185,590. At June 30, 2021, the City of Owasso had the following deferred outflows and deferred inflows of resources related to OPEB. Deferred Deferred Outflows of Inflows of Resources Resources Differences between expected and actual experience $ Changes in assumptions /inputs Total - $ (388,390) 135,785 - $ 135,785 $ (388,390) FN Page 50 NOTES TO BASIC FINANCIAL STATEMENTS - Continued CITY OF OWASSO, OKLAHOMA YEAR ENDED JUNE 30, 2021 4.B- -Other Post- Employment Benefits -- Continued Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows: Year Ending June 30, Amortization Expense 2022 $ (36,975) 2023 (36,975) 2024 (36,975) 2025 (36,975) 2026 (36,975) Thereafter (67,730) Total $ (252,605) FN Page 51 NOTES TO BASIC FINANCIAL STATEMENTS — Continued CITY OF OWASSO, OKLAHOMA YEAR ENDED JUNE 30, 2021 4.0 - -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; employees' health and life; and natural disasters. The City manages these various risks of loss as follows: Type of Loss Method Managed General Liability: Self- insured effective - Torts November 2003. Errors and omissions Police liability Vehicle Physical Property: Property is fully insured by Theft commercial carrier. Damage to assets Natural disasters Workers' Compensation: Self- insured within limits of - Employee injuries Oklahoma workers' compensation laws. Health: Self- insured effective July 2004 Medical Dental Vision Risk of Loss Retained Entire risk of loss retained in self- insurance fund. $25,000 deductible Specific retention of $1,000,000 for Police and Fire and $750,000 for all other per accident or disease with employer liability of $1,000,000 per accident or disease. Stop loss of $140,000 per employee per plan year. Third party administrator is AETNA. 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 Government Accounting Standards Board (GASB) Statement 10, which requires state and local governmental entities, other than public entity risk pools, to report an estimated loss from a claim as an expenditure/ expense and as a liability if both of these conditions are met: a. Information available before the financial statements are issued indicates that it is probable that an asset had been impaired or a liability had been incurred at the date of the financial statements. It is implicit in this condition that it must be probable that one or more future events will also occur, confirming the fact of the loss. b. The amount of the loss can be reasonably estimated. FN Page 52 NOTES TO BASIC FINANCIAL STATEMENTS - Continued CITY OF OWASSO, OKLAHOMA YEAR ENDED JUNE 30, 2021 4.0 - -Risk Management -- Continued For the risk management internal service self- insurance funds, changes in the claims liability for the City from July 1, 2019 to June 30, 2021 are as follows: General Workers' Total Compensations Claims liability and related payables, July 1, 2019 $ 676,000 Claims incurred and changes in estimates 256,069 Claims paid (253,069) Claims liability and related payables, June 30, 2020 679,000 Claims incurred and changes in estimates 23,954 Claims paid (175,954) Claims liability and related payables, June 30, 2021 $ 527,000 General The City has elected to retain significant retained earnings in the internal service self- insurance funds as a reserve for catastrophes. The City maintains a stop -loss policy for plans to limit risk associated with the self- insured plans. For insured programs, there have been no significant reductions in insurance coverage. Settlement amounts have exceeded insurance coverage for the current year or prior year. 4.D-- Commitments and Contingencies Commitments: The City of Owasso and OPWA Trust Authority (OPWA), under the auspices of Title 62, Chapter 9 of the Oklahoma Statutes, have economic development sales tax payback agreements with two entities for rebate of all or a portion of the two -cent General fund sales tax generated on sales at the properties identified by the respective agreements. Taxes eligible for rebate are recorded as revenue in the General fund as earned and further reflected as transfers to the OPWA. Rebate - eligible sales tax is recognized as expenses by the OPWA as incurred (earned by the recipient). Both agreements required the construction and operation of a new business within the City limits. In return, both became eligible for a refund of all or a portion of sales tax revenue generated at their respective places of business up to a maximum reimbursement amount as outlined in the agreements. In addition, the City has Tax Incremental Financing (TIF) Agreements with two of the entities. The entities will receive a rebate on the ad valorem tax assessed by the TIF. The sales tax payback combines with the ad valorem rebate, to be paid annually, until the agreement is fulfilled. As of June 30, 2021, the contract amount related to OPWA payback agreements totaled $1.6 million. Some of the agreements expire after a period of time, whether or not the business has reached the maximum rebate amount specified in the agreement or has been reimbursed for any of the cost of infrastructure. All obligations of the City for infrastructure improvements in relation to the agreements have been met. A breakdown of tax abatements by recipient is prohibited by State statute due to required confidentiality of sales tax collections by vendor. FN Page 53 Liability / Total Healthcare Property Internal Service $ 355,900 $ - $ 1,031,900 5,041,520 33,010 5,330,599 (5,006,820) (33,010) (5,292,899) 390,600 - 1,069,600 4,766,300 70,724 4,860,978 (4,766,700) (70,724) (5,013,378) $ 390,200 $ - $ 917,200 The City has elected to retain significant retained earnings in the internal service self- insurance funds as a reserve for catastrophes. The City maintains a stop -loss policy for plans to limit risk associated with the self- insured plans. For insured programs, there have been no significant reductions in insurance coverage. Settlement amounts have exceeded insurance coverage for the current year or prior year. 4.D-- Commitments and Contingencies Commitments: The City of Owasso and OPWA Trust Authority (OPWA), under the auspices of Title 62, Chapter 9 of the Oklahoma Statutes, have economic development sales tax payback agreements with two entities for rebate of all or a portion of the two -cent General fund sales tax generated on sales at the properties identified by the respective agreements. Taxes eligible for rebate are recorded as revenue in the General fund as earned and further reflected as transfers to the OPWA. Rebate - eligible sales tax is recognized as expenses by the OPWA as incurred (earned by the recipient). Both agreements required the construction and operation of a new business within the City limits. In return, both became eligible for a refund of all or a portion of sales tax revenue generated at their respective places of business up to a maximum reimbursement amount as outlined in the agreements. In addition, the City has Tax Incremental Financing (TIF) Agreements with two of the entities. The entities will receive a rebate on the ad valorem tax assessed by the TIF. The sales tax payback combines with the ad valorem rebate, to be paid annually, until the agreement is fulfilled. As of June 30, 2021, the contract amount related to OPWA payback agreements totaled $1.6 million. Some of the agreements expire after a period of time, whether or not the business has reached the maximum rebate amount specified in the agreement or has been reimbursed for any of the cost of infrastructure. All obligations of the City for infrastructure improvements in relation to the agreements have been met. A breakdown of tax abatements by recipient is prohibited by State statute due to required confidentiality of sales tax collections by vendor. FN Page 53 NOTES TO BASIC FINANCIAL STATEMENTS - Continued CITY OF OWASSO, OKLAHOMA YEAR ENDED JUNE 30, 2021 4.D-- Commitments and Contingencies -- Continued The City has various construction contracts at year -end. A substantial amount of these commitments are for infrastructure. At June 30, 2021, the City had some significant outstanding commitments on contracts in excess of $1,000,000. The total contract amounts were approximately $38.4 million, and the remaining balance on those contracts totaled approximately $31.7 million, as of June 30, 2021. A breakdown of the outstanding encumbrances follows: Fund Encumbrances General $ 225,284 Half -Penny Sales Tax 38,259 Vision Recapture Tax 990,318 Capital Improvement 3,257,831 Stormwater Management 546,990 Park Development 8,000 OPWA 26,597,636 City Garage 4,700 Total Encumbrances $ 31,669,018 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, the purpose of which is to ensure compliance with the specific conditions of the grant or loan. Any liability of 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 an accrual 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. FN Page 54 NOTES TO BASIC FINANCIAL STATEMENTS - Continued CITY OF OWASSO, OKLAHOMA YEAR ENDED JUNE 30, 2021 4.D-- Commitments and Contingencies -- Continued Debt: On November 7, 2017, the OPWA approved Resolution 2017 -02 authorizing the issuance, execution and delivery of a $7 million Revenue Anticipation Note dated November 8, 2017, at an annual percentage rate of 27o for a period of seven years for the purpose of funding $7 million of Capital Improvements projects for the City of Owasso. The Owasso City Council approved on November 7, 2017, Resolution 2017 -20 authorizing the City Treasurer to invest up to $7 million in the Revenue Anticipation Note (RAN) issued by the OPWA. As of June 30, 2021, the City had not drawn down any of the funds. Pandemic: On January 30, 2020, the World Health Organization declared the coronavirus outbreak a "Public Health Emergency of International Concern" and, on March 11, 2020, declared it to be a pandemic. Actions taken around the world to help mitigate the spread of the coronavirus include restrictions on travel, quarantines in certain areas, and forced closures for certain types of public places and businesses. The coronavirus and actions taken to mitigate the spread of it have had and are expected to continue to have an adverse impact on the economies and financial markets of many countries, including the geographical area in which the City operates. It is unknown how long the adverse conditions associated with the pandemic will last and what the complete financial effect will be to the City. Accordingly, while management cannot quantify the financial and other impacts to the City as of June 30, 2021, management believes that a material impact on the City's financial position and results of future operations is reasonably possible. NOTE 5 -- FUTURE ACCOUNTING PRONOUNCEMENTS The GASB has issued several new accounting pronouncements, which will be effective to the City 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: • GASB Statement No. 87, Leases - This statement is effective for reporting periods beginning after June 15, 2021. The objective of this Statement is to better meet the information needs of financial statement users by improving accounting and financial reporting for leases by governments. This statement will become effective for the City in the fiscal year ended June 30, 2022. The City does not believe this pronouncement will have a material impact on its basic financial statements. FN Page 55 NOTES TO BASIC FINANCIAL STATEMENTS - Continued CITY OF OWASSO, OKLAHOMA YEAR ENDED JUNE 30, 2021 NOTE 5 -- FUTURE ACCOUNTING PRONOUNCEMENTS -- Continued GASB Statement No. 89 Accounting for Interest Cost Incurred before the End of a Construction Period - This statement is effective for reporting periods beginning after December 15, 2020. The objectives of this Statement are (1) to enhance the relevance and comparability of information about capital assets and the cost of borrowing for a reporting period and (2) to simplify accounting for interest cost incurred before the end of a construction period. This statement will become effective for the City in the fiscal year ended June 30, 2022. The City does not believe this pronouncement will have a material impact on its basic financial statements. GASB Statement No. 91, Conduit Debt Obligations - This statement was issued May 2019 and establishes accounting requirements for conduit debt obligations by issuers. The objectives of this Statement are to eliminate diversity in practice associated with (1) commitments extended by issuers, (2) arrangements associated with conduit debt obligations, and (3) related note disclosures. This statement will become effective for the City in the fiscal year ended June 30, 2023. The City does not believe this pronouncement will have a material impact on its basic financial statements. GASB Statement No. 92, Omnibus 2020 - The objectives of this Statement are to enhance comparability in accounting and financial reporting and to improve the consistency of authoritative literature by addressing practice issues that have been identified during implementation and application of certain GASB Statements. This Statement addresses a variety of topics including leases, intra- entity transfers related to pensions and OPEB plans, asset retirement obligations and reporting of reinsurance amounts. This Statement will become effective for the City in the fiscal year ended June 30, 2022. • GASB Statement No. 93, Replacement of Interbank Offered Rates - The objective of this Statement is to address accounting and financial reporting implications that result from global reference rate reform leading to the dissolution of the London Interbank Offered Rate (LIBOR) at the end of 2021. This Statement will become effective for the City in the fiscal year ended June 30, 2022. GASB Statement No. 94, Public- Private and Public - Public Partnerships and Availability Payment Arrangements - The primary objective of this Statement is to improve financial reporting by addressing issues related to public - private and public - public partnerships arrangements (PPPs). A PPP is an arrangement in which a government contracts with an operator to provide public services by conveying control of the right to operate or use a nonfinancial asset, such as infrastructure or other capital asset, for a period of time in an exchange or exchange -like transaction. This Statement will become effective for the City in the fiscal year ended June 30, 2023. GASB Statement No. 96, Subscription -Based Information Technology Arrangements - The Statement provides guidance on the accounting and financial reporting for subscription -based information technology arrangements for government end users. This Statement will become effective for the City in the fiscal year ended June 30, 2023. FN Page 56 NOTES TO BASIC FINANCIAL STATEMENTS - Continued CITY OF OWASSO, OKLAHOMA YEAR ENDED JUNE 30, 2021 NOTE 5 -- FUTURE ACCOUNTING PRONOUNCEMENTS -- Continued • GASB Statement No. 97, Certain Component Unit Criteria, and Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans - The primary objectives of this Statement are to (1) increase consistency and comparability related to the reporting of fiduciary component units in circumstances in which a potential component unit does not have a governing board and the primary government performs the duties that a governing board typically would perform; (2) mitigate costs associated with the reporting of certain defined contribution pension plans, defined contribution other postemployment benefit (OPEB) plans, and employee benefit plans other than pension plans or OPEB plans as fiduciary component units in fiduciary fund financial statements; and (3) enhance the relevance, consistency, and comparability of the accounting and financial reporting for Internal Revenue Code (IRC) Section 457 deferred compensation plans that meet the definition of a pension plan and for benefits provided through those plans. This Statement will become effective for the City in the fiscal year ended June 30, 2022. NOTE 6 -- SUBSEQUENT EVENTS On March 11, 2021, the American Rescue Plan Act (ARPA) was enacted to, amongst other provisions, provide immediate relief to American workers affected by the pandemic. In October 2021, the City received $ 3,227,368 in ARPA funding. The City has evaluated subsequent events through the date of the independent auditors' report which is the date the financial statements are available to be issued. FN Page 57 REQUIRED SUPPLEMENTARY INFORMATION CITY OF OWASSO, OKLAHOMA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF CHANGES IN THE CITY'S TOTAL OPEB LIABILITY AND RELATED RATIOS Last 10 Fiscal Years Total OPEB liability: Service cost Interest cost Differences between expected and actual experience Changes of assumption or other inputs Benefit payments Net change in total OPEB liability Total OPEB liability - beginning Total OPEB liability - ending Covered - employee payroll Total OPEB liability as a percentage of covered - employee payroll 2018 2019 2020 2021 $ 118,303 $ 122,893 $ 140,710 $ 175,547 72,235 72,774 65,702 47,018 (279,153) (80,039) (154,841) 12,869 149,091 12,530 (48,875) (67,805) (69,258) (50,721) 141,663 (138,422) 206,206 29,533 1,767,864 1,909,527 1,771,105 1,977,311 $ 1,909,527 $ 1,771,105 $ 1,977,311 $ 2,006,844 $ 14,835,673 $ 15,652,240 $ 16,553,403 $ 17,921,347 12.87% 11.327o 11.95% 11.20% Notes to Schedule: Information for prior years is unavailable There are no assets accumulated in a trust that meet the criteria of GASB codification P22.101 or P52.101 to pay related benefits for the OPEB plan. See independent auditor's report as it relates to required supplementary information. RSI Page 1 CITY OF OWASSO, OKLAHOMA SCHEDULE OF CHANGES IN NET PENSION LIABILITY OKLAHOMA FIREFIGHTERS PENSION & RETIREMENT SYSTEM Last 10 Fiscal Years Total pension liability: Service cost Interest cost Changes in benefit terms Differences between expected and actual experience Change in assumptions Benefit payments, including refunds Change in proportion Other Net change in total pension liability Total pension liability- beginning Total pension liability - ending (a) Plan fiduciary net position: Contributions - employer Contributions- non - employer Contributions - employee Net investment income Benefit payments, including refunds of employee contributions Administrative expense Change in proportionate share of plan Other Net change in plan fiduciary net position Plan fiduciary net position - beginning Plan fiduciary net position - ending (b) Plan's net pension (asset) liability- ending (a) - (b) Notes to Schedule: Information for prior years is unavailable 2015 2016 2017 2018 2019 2020 2021 $ 732,538 $ 782,979 $ 809,432 $ 834,995 $ 837,281 $ 910,445 $ 938,128 2,854,335 3,066,398 3,301,439 3,502,356 3,603,282 3,906,369 4,158,683 - - - - (1,866,517) - - 362,191 15,675 261,921 2,315,764 1,622,827 (363,613) 1,559,544 - - - - - (459,234) - (2,160,153) (2,335,746) (2,609,519) (2,718,822) (3,182,021) (3,354,828) (3,603,345) - 1,075,941 1,715,001 944,717 (2,359,287) 3,039,528 2,821,630 1 1,788,911 2,605,248 3,478,274 4,879,010 (1,344,435) 3,678,667 5,874,640 38,405,347 40,194,258 42,799,506 46,277,780 51,156,790 49,812,355 53,491,022 $40,194,258 $42,799,506 $ 46,277,780 $ 51,156,790 $ 49,812,355 $ 53,491,022 $ 59,365,662 $ 465,751 $ 489,432 $ 521,148 $ 540,373 $ 539,357 $ 595,016 $ 650,206 991,261 1,167,377 1,228, 720 1,204,047 1,299, 645 1,397, 732 1,498,831 274,871 311,058 326,468 342,697 337,907 375,854 413,866 4,182,134 1,492,144 189,489 4,109,435 3,758,598 2,602,403 1,589,405 (2,160,153) (2,335,746) (2,609,519) (2,718,822) (3,182,021) (3,354,828) (3,603,345) (24,401) (25,963) (26,540) (32,425) (27,181) (30,165) (31,203) - 732,914 1,170,807 612,802 (1,571,610) 2,149,807 2,055,571 (15,837) 7,991 186 - (613) 1,174 (349) 3,713,626 1,839,207 800,759 4,058,107 1,154,082 3,736,993 2,572,982 23,665,778 27,379,404 29,218,611 30,019,370 34,077,477 35,231,559 38,968,552 $ 27,379,404 $ 29,218,611 $ 30,019,370 $ 34,077,477 $ 35,231,559 $ 38,968,552 $ 41,541,534 $ 12,814,854 $ 13,580,895 $ 16,258,410 $ 17,079,313 $ 14,580,796 $ 14,522,470 $ 17,824,128 See independent auditor's report as it relates to required supplementary information. RSI Page 2 CITY OF OWASSO, OKLAHOMA SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY OKLAHOMA FIREFIGHTERS PENSION 8 RETIREMENT SYSTEM Last 10 Fiscal Years City's proportion of the net pension liability City's proportionate share of the net pension liability City's covered payroll City's proportionate share of the net pension liability as a percentage of its covered payroll Plan fiduciary net position as a percentage of the total pension liability Notes to Schedule: The schedule is as of the measurement date, which is one year in arrears. Information forpdor years is unavailable. 2015 2016 2017 2018 2019 2020 2021 1.2461587. 1.279517% 1.330786% 1.357954% 1.2953277. 1.3743687. 1.446865% $ 12,814,854 $ 13,580,895 $16,258,410 $17,079,313 $14,580,796 $14,522,470 $17,824,128 $ 3,292,364 $ 3,365,832 $ 3,639,341 $ 3,764,707 $ 3,961,245 $ 4,443,878 $ 4,843,678 389% 403% 447% 454% 368% 327% 368% 68.12% 68.277. 64.87% 66.61% 70.737. 72.857. 69.98% See independent auditor's report as it relates to required supplementary information. RSI Page 3 CITY OF OWASSO, OKLAHOMA SCHEDULE OF CONTRIBUTIONS OKLAHOMA FIREFIGHTERS PENSION & RETIREMENT SYSTEM Last 10 Fiscal Years Statutorily required contribution Contributions in relation to the statutorily required contribution Contribution deficiency lexcess) City's covered payroll Contributions as a percentage of covered payroll Notes to Schedule: Information for prior years is unavailable. 2015 2016 2017 2018 2019 2020 2021 $ 471,216 $ 509,508 $ 526,923 $ 554,574 $ 622,143 $ 678,115 $ 705,058 471,216 509,508 526,923 554,574 622,143 678,115 705,058 $ 3,365,832 $ 3,639,341 $ 3,764,707 $ 3,961,245 $ 4,443,878 $ 4,843,678 $ 5,036,130 14.00% 14.00% 14.00% 14.00% 14.00% 14.00% 14.00% See independent auditor's report as it relates to required supplementary information. RSI Page 4 CITY OF OWASSO, OKLAHOMA NOTES TO REQUIRED SUPPLEMENTARY INFORMATION OKLAHOMA FIREFIGHTERS PENSION & RETIREMENT SYSTEM For the fiscal year ended June 30, 2021 The information presented in the required supplementary schedule was determined as part of the respective actuarial valuations. Actuarial valuation: Frequency Annual Cost Method Entry age normal Amortization The amortization method uses a level percentage of payroll over a 24 -year period. Assumptions: Long -term rate of return 7.5% per year Salary increases 2.75% to 10.50% Inflation rate 2.75% per year Retirement age Normal retirement age is 50, or the date at which the participant would achieve 22 years of service, if later Mortality Pub -2010 Public Safety Table with generational mortality improvement using MP -2018. See independent auditor's report as it relates to required supplementary information. RSI Page 5 CITY OF OWASSO, OKLAHOMA SCHEDULE OF CHANGES IN NEr PENSION LIABILITY OKLAHOMA POLICE PENSION & RETIREMENT SYSTEM Last 10 Fiscal Years Total pension liability- beginning Total pension liability- ending (a) Plan fiduciary net position: Contributions - employer Contributions - non - employer Contributions - employee Net investment income Benefit payments, including refunds of employee contributions Administrative expense Change in proportion Other Net change in plan fiduciary net position Plan fiduciary net position - beginning Plan fiduciary net position - ending (b) Plan's net pension (asset) liability- ending (a) - (b) Notes to Schedule: Information for prior years is unavailable. 19,126,136 19,797,788 24,029,060 24,752,237 26,954,912 28,402,480 29,532,864 $ 19,797,788 $ 24,029,060 $ 24,752,237 $ 26,954,912 $ 28,402,480 $ 29,532,864 $ 32,119,679 $ 326,569 $ 389,133 $ 402,984 $ 434,836 $ 453,108 $ 476,532 $ 511,106 281,316 375,832 377,514 384,547 440,610 447,197 473,022 198,723 242,157 250,033 268,262 279,384 295,874 320,592 2,648,002 789,513 (221,831) 2,719,133 2,319,321 1,185,645 655,129 (1,070,714) (1,500,502) (1,457,133) (1,616,259) (1,575,608) (1,757,701) (1,915,719) (16,720) (20,640) (19,246) (19,057) (19,429) (21,151) (23,384) - 3,604,818 (177,762) 1,553,326 174,241 38,377 1,137,677 (7,375) 5,455 2,050 1,354 - - 8,061 2,359,801 3,885,766 (843,391) 3,726,142 2,071,627 664,773 1,166,484 17,740,314 20,100,115 23,985,881 23,142,490 26,868,632 28,940,259 29,605,032 $20,100,115 $23,985,881 $23,142,490 $26,868,632 $ 28,940,259 $ 29,605,032 $ 30,771,516 $ (302,327) $ 43,179 $ 1,609,747 $ 86,280 $ (537,779) $ (72,168) $ 1,348,163 See independent auditor's report as it relates to required supplementary information. RSI Page 6 2015 2016 2017 2018 2019 2020 2021 Total pension liability: Service cost $ 476,284 $ 578,125 $ 616,955 $ 706,987 $ 710,070 $ 732,276 $ 801,056 Interest cost 1,430,030 1,738,220 1,735,169 1,921,514 1,976,717 2,068,294 2,229,537 Change in benefit terms 24,397 513,181 Differences between expected and actual experience (163,948) (135,169) 6,267 (470,940) (148,515) 49,853 (176,143) Assumption changes 285,706 Benefit payments, including refunds (1,070,714) (1,500,502) (1,457,133) (1,616,259) (1,575,608) (1,757,701) (1,915,719) Change in proportion 3,550,598 (178,081) 1,661,373 174,801 37,662 1,134,903 Net change in total pension liability 671,652 4,231,272 723,177 2,202,675 1,447,568 1,130,384 2,586,815 Total pension liability- beginning Total pension liability- ending (a) Plan fiduciary net position: Contributions - employer Contributions - non - employer Contributions - employee Net investment income Benefit payments, including refunds of employee contributions Administrative expense Change in proportion Other Net change in plan fiduciary net position Plan fiduciary net position - beginning Plan fiduciary net position - ending (b) Plan's net pension (asset) liability- ending (a) - (b) Notes to Schedule: Information for prior years is unavailable. 19,126,136 19,797,788 24,029,060 24,752,237 26,954,912 28,402,480 29,532,864 $ 19,797,788 $ 24,029,060 $ 24,752,237 $ 26,954,912 $ 28,402,480 $ 29,532,864 $ 32,119,679 $ 326,569 $ 389,133 $ 402,984 $ 434,836 $ 453,108 $ 476,532 $ 511,106 281,316 375,832 377,514 384,547 440,610 447,197 473,022 198,723 242,157 250,033 268,262 279,384 295,874 320,592 2,648,002 789,513 (221,831) 2,719,133 2,319,321 1,185,645 655,129 (1,070,714) (1,500,502) (1,457,133) (1,616,259) (1,575,608) (1,757,701) (1,915,719) (16,720) (20,640) (19,246) (19,057) (19,429) (21,151) (23,384) - 3,604,818 (177,762) 1,553,326 174,241 38,377 1,137,677 (7,375) 5,455 2,050 1,354 - - 8,061 2,359,801 3,885,766 (843,391) 3,726,142 2,071,627 664,773 1,166,484 17,740,314 20,100,115 23,985,881 23,142,490 26,868,632 28,940,259 29,605,032 $20,100,115 $23,985,881 $23,142,490 $26,868,632 $ 28,940,259 $ 29,605,032 $ 30,771,516 $ (302,327) $ 43,179 $ 1,609,747 $ 86,280 $ (537,779) $ (72,168) $ 1,348,163 See independent auditor's report as it relates to required supplementary information. RSI Page 6 CITY OF OWASSO, OKLAHOMA SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY (ASSET) OKLAHOMA POLICE PENSION & RETIREMENT SYSTEM Last 10 Fiscal Years City's proportion of the net pension liability (asset) City's proportionate share of the net pension liability (asset) City's covered payroll City's proportionate share of the net pension liability (asset) as a percentage of its covered payroll Plan fiduciary net position as a percentage of the total pension liability (asset) Notes to Schedule: The schedule is as of the measurement date, which is one year in arrears. Information for prior years is unavailable. 2015 2016 2017 2018 2019 2020 2021 89.7941% 1.059097 1.0511% 1.1217% 1.1290% 1.130597 1.1739% $ (302,327) $ 43,179 $ 1,609,747 $ 86,280 $ (537,779) $ (72,168) $ 1,348,163 $ 2,419,274 $ 2,694,629 $ 3,039,381 $ 3,420,202 $ 3,450,171 $ 3,676,122 $ 3,932,727 - 12.5097 1.60% 52.96% 2.52% - 15.59% -1.96% 34.28% 101.53% 99.82% 93.50% 99.68% 101.89% 100.24% 95.80% See independent auditor's report as it relates to required supplementary information. RSI Page 7 CITY OF OWASSO, OKLAHOMA SCHEDULE OF CONTRIBUTIONS OKLAHOMA POLICE PENSION & RETIREMENT SYSTEM Last 10 Fiscal Years Statutorily required contribution Contributions in relation to the statutorily required contribution Contribution deficiency lexcess) City's covered payroll Contributions as a percentage of covered payroll Notes to Schedule: Information for prior years is unavailable. 2015 2016 2017 2018 2019 2020 2021 $ 350,280 $ 395,119 $ 444,625 $ 448,521 $ 477,895 $ 511,254 $ 558,825 350,280 395,119 444,625 448,521 477,895 511,254 558,825 $ 2,694,629 $ 3,039,381 $ 3,420,202 $ 3,450,171 $ 3,676,122 $ 3,932,727 $ 4,298,661 13.00% 13.00% 13.00% 13.00% 13.00% 13.00% 13.00% See independent auditor's report as it relates to required supplementary information. RSI Page 8 CITY OF OWASSO, OKLAHOMA NOTES TO REQUIRED SUPPLEMENTARY INFORMATION OKLAHOMA POLICE PENSION & RETIREMENT SYSTEM For the fiscal year ended June 30, 2021 The information presented in the required supplementary schedule was determined as part of the respective actuarial valuations. Actuarial valuation: Frequency Annual Cost Method Entry age actuarial Amortization The unfunded actuarial accrued liability is amortized as a level dollar amount over a 5 -year open period. Surplus, if any, is amortized as a level dollar amount over a 30 -year open period. Assumptions: Long -term rate of return 7.5% per year Salary increases 3.5 to 10% per year Inflation rate 2.75% per year Retirement age Normal retirement age is 50, or the date at which the participant would achieve twenty years of service, if later Mortality RP -2000 Combined Blue Collar Healthy Employees with adjustments based on different membership groups See independent auditor's report as it relates to required supplementary information. RSI Page 9 CITY OF OWASSO, OKLAHOMA SCHEDULE OF CHANGES IN NET PENSION LIABILITY OKLAHOMA MUNICIPAL RETIREMENT FUND - DEFINED BENEFIT PLAN Last 10 Fiscal Years Plan fiduciary net position: 2015 2016 2017 2018 2019 2020 2021 Total pension liability: $ 403,770 $ 428,631 $ 450,846 $ 495,503 $ 543,455 $ 649,774 $ 687,855 Service cost $ 534,626 $ 605,712 $ 646,982 $ 689,531 $ 782,936 $ 809,757 $ 841,741 Interest cost 872,238 906,999 997,554 1,101,384 1,232,116 1,344,588 1,501,016 Differences between expected and actual experience 45,301 67,568 345,800 (45,777) 32,299 419,861 Benefit payments, including refunds (449,007) (397,469) (381,350) (363,033) (468,902) (470,431) (579,704) Other 2 613,852 441,257 1,516,519 1,208,934 Assumption changes 12,412,191 495,217 423,147 Net change in total pension liability 957,859 1,160,543 1,330,754 2,268,899 1,500,373 2,139,360 2,182,914 Total pension liability - beginning 10,940,377 11,898,236 13,058,779 14,389,533 16,658,432 18,158,805 20,298,165 Total pension liability- ending (a) $ 11,898,236 $ 13,058,779 $ 14,389,533 $ 16,658,432 $ 18,158,805 $ 20,298,165 $ 22,481,079 Plan fiduciary net position: Contributions - employer $ 403,770 $ 428,631 $ 450,846 $ 495,503 $ 543,455 $ 649,774 $ 687,855 Contributions - employee 235,624 255,463 270,890 296,884 316,274 322,615 345,957 Net investment income 1,741,201 353,284 126,963 1,695,510 1,158,441 1,213,430 794,207 Benefit payments, including refunds of employee contributions (449,007) (397,469) (381,350) (363,033) (468,902) (470,431) (579,704) Administrative expense (25,772) (26,057) (26,092) (29,536) (32,749) (35,763) (39,381) Net change in plan fiduciary net position 1,905,816 613,852 441,257 2,095,328 1,516,519 1,679,625 1,208,934 Plan fiduciary net position - beginning 10,506,375 12,412,191 13,026,043 13,467,300 15,562,628 17,079,147 18,758,772 Plan fiduciary net position - ending (b) $ 12,412,191 $ 13,026,043 $ 13,467,300 $ 15,562,628 $ 17,079,147 $ 18,758,772 $ 19,967,706 Plan's net pension (asset) liability- ending (a) - (b) $ (513,955) $ 32,736 $ 922,233 $ 1,095,804 $ 1,079,658 $ 1,539,393 $ 2,513,373 Notes to Schedule: The schedule is as of the measurement date, which is one year in arrears. Information for prior years is unavailable. See independent auditor's report as it relates to required supplementary information. RSI Page 10 CITY OF OWASSO, OKLAHOMA SCHEDULE OF NET PENSION LIABILITY (ASSET) AND RELATED RATIOS OKLAHOMA MUNICIPAL RETIREMENT FUND Last 10 Fiscal Years Notes to Schedule: The schedule is as of the measurement date, which is one yearin arrears. Information for prior years is unavailable. See independent auditor's report as it relates to required supplementary information. RSI Page 11 2015 2016 2017 2018 2019 2020 2021 City's net pension liability (asset) $ (513,955) $ 32,736 $ 922,233 $ 1,095,804 $ 1,079,658 $ 1,539,393 $ 2,513,373 City's covered payroll $ 5,653,136 $ 5,955,951 $ 6,329,343 $ 7,002,962 $ 7,316,302 $ 7,573,133 $ 8,121,058 City's net pension liability (asset) as a percentage of its covered payroll (9.09 %) 0.55% 14.57% 15.65% 14.76% 20.33% 30.95% Plan fiduciary net position as a percentage of the total pension liability (asset) 104.32% 99.75% 93.59% 93.42% 94.05% 92.42% 88.82% Notes to Schedule: The schedule is as of the measurement date, which is one yearin arrears. Information for prior years is unavailable. See independent auditor's report as it relates to required supplementary information. RSI Page 11 CITY OF OWASSO, OKLAHOMA SCHEDULE OF CONTRIBUTIONS OKLAHOMA MUNICIPAL RETIREMENT FUND Last 10 Fiscal Years Actuarily determined contribution Employer contributions Employee contributions Contribution deficiency (excess) City's covered payroll 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 $ 672,800 $ 659,426 $ 639,394 $ 684,094 $ 721,736 $ 792,387 $ 859,729 $ 972,389 $ 1,033,812 $ 1,122,877 449,348 440,076 403,770 428,631 450,846 495,503 543,455 649,774 687,855 759,669 223,452 219,350 235,624 255,463 270,890 296,884 316,274 322,615 345,957 363,208 $5,033,749 $5,325,723 $5,653,136 $5,955,951 $6,329,343 $7,002,962 $7,316,302 $7,573,133 $8,121,058 $8,526,026 Contributions as a percentage of covered payroll 13.377. 12.38% 11.31% 11.49% 11.40% 11.32% 11.757. 12.847. 12.73% 13.177. See independent auditor's report as it relates to required supplementary information. RSI Page 12 CITY OF OWASSO, OKLAHOMA NOTES TO REQUIRED SUPPLEMENTARY INFORMATION OKLAHOMA MUNICIPAL RETIREMENT FUND For the fiscal year ended June 30, 2021 The information presented in the required supplementary schedule was determined as part of the respective actuarial valuations. Actuarial valuation: Frequency Annual Cost Method Entry age normal Amortization The amortization method uses a level percentage of payroll over a closed 30 -year period. Assumptions: Long -term rate of return 7.5% per year Salary increases Range of 4.5% to 7.5% per year Inflation rate 2.75% per year Retirement age Normal retirement age is 65 with 5 or more years of vesting service or age 62 with 30 or more years of vesting service. Mortality PubG -2010 with project mortality improvement based on employee's year of birth See independent auditor's report as it relates to required supplementary information. RSI Page 13 NOTES TO REQUIRED SUPPLEMENTARY INFORMATION BUDGET COMPARISON SCHEUDLE CITY OF OWASSO JUNE 30, 2021 Budgetary Accounting: The annual operating budgets are prepared and presented on a budgetary basis of accounting, which differs from the modified accrual basis. Under the budgetary basis, certain revenues are recognized when received rather than when measurable and available. Per City Ordinance, the City utilizes encumbrance accounting during the year on a limited basis for certain purchase orders and other commitments for the expenditure of funds which are recorded in order to reserve a portion of the applicable appropriation. Encumbrances lapse at year -end; therefore, encumbrances outstanding at year -end are not considered expenditures for budgetary purposes, as the City will provide for supplemental appropriations in the following budget year. Budget Law: The City prepares its annual operating budget under the provisions of the 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. b. Public hearings are conducted to obtain citizen comments. At least one public hearing must be held no later than 15 days prior to July 1. c. Subsequent to the public hearings but no later than seven days prior to July 1, the budget is adopted by resolution of the City Council. d. The adopted budget is filed with the Office of State Auditor and Inspector within 30 days of the start of the year. All funds of the City with revenues and expenditures are required to have annual budgets. The legal level of control at which expenditures may not legally exceed appropriations is the department level within a fund. All supplemental appropriations require City Council approval. The City Manager may transfer appropriations between departments without City Council approval. Supplemental appropriations must also be filed with the Office of State Auditor and Inspector. In accordance with Title 60 of the Oklahoma State Statutes, the OPWA, the OPGA, and the OEDA are required to prepare an annual budget and submit a copy to the City as beneficiary. However, there are no further requirements such as form of budget, approval of the budget, or definition of a legal level of control. See independent auditor's report as it relates to required supplementary information. RSI Page 14 BUDGETARY COMPARISON SCHEDULE -- GENERAL FUND CITY OF OWASSO, OKLAHOMA For the fiscal year ended June 30, 2021 Budgetary Variance with Basis Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) Beginning Budgetary Fund Balance $ 5,595,706 $ 7,505,443 $ 7,505,443 $ Resources (Inflows): TAXES Sales Tax 25,947,808 29,147,808 29,130,686 (17,122) Use Tax 2,920,913 2,920,913 4,184,835 1,263,922 Franchise Tax 1,196,328 1,196,328 1,107,320 (89,008) TOTAL TAXES 30,065,049 33,265,049 34,422,841 1,157,792 INTERGOVERNMENTAL Alcoholic beverage tax 83,285 83,285 95,989 12,704 Motor vehicle license 260,327 260,327 265,597 5,270 Gas excise tax 63,753 63,753 62,929 (824) Cigarette /tobacco tax 329,619 329,619 364,207 34,588 Grant and other intergovernmental revenue 746,211 3,671,078 3,952,237 281,159 TOTAL INTERGOVERNMENTAL 1,483,195 4,408,062 4,740,959 332,897 CHARGES FOR SERVICES 736,575 748,615 763,711 15,096 FINES AND FORFEITURES 302,684 302,684 233,663 (69,021) BUILDINGS AND OTHER LICENSES AND PERMITS 241,714 241,714 345,456 103,742 INVESTMENT INCOME 41,874 41,874 39,569 (2,305) MISCELLANEOUS 145,423 176,688 150,395 (26,293) OTHER FINANCING SOURCES Transfers from other funds 17,198,539 17,198,539 19,311,295 2,112,756 TOTAL OTHER FINANCING SOURCES 17,198,539 17,198,539 19,311,295 2,112,756 Total Resources (Inflows) 50,215,053 56,383,225 60,007,889 3,624,664 Amount available for appropriation $ 55,810,759 $ 63,888,668 $ 67,513,332 $ 3,624,664 (Continued) See independent auditor's report as it relates to required supplementary information. RSI Page 15 BUDGETARY COMPARISON SCHEDULE -- GENERAL FUND -- Continued CITY OF OWASSO, OKLAHOMA For the fiscal year ended June 30, 2021 Budgeted Amounts Original Final Charges to Appropriations (Outflows): GENERAL GOVERNMENT Budgetary Variance with Basis Final Budget Actual Positive Amounts (Negative) CITY MANAGER $ 861,284 $ 868,047 $ 846,521 $ 21,526 FINANCE 891,471 910,160 890,829 19,331 MUNICIPAL COURT 334,654 333,749 307,915 25,834 INFORMATION TECHNOLOGY 906,333 1,228,894 1,033,603 195,291 GENERAL GOVERNMENT 495,700 495,849 321,771 174,078 SUPPORT SERVICES 461,756 863,359 583,193 280,166 HUMAN RESOURCES 460,647 494,526 464,994 29,532 TOTAL GENERAL GOVERNMENT $ 4,411,845 $ 5,194,584 $ 4,448,826 $ 745,758 (Continued) See independent auditor's report as it relates to required supplementary information. RSI Page 16 BUDGETARY COMPARISON SCHEDULE -- GENERAL FUND -- Continued CITY OF OWASSO, OKLAHOMA For the fiscal year ended June 30, 2021 Charges to Appropriations (Outflows): PUBLIC SAFETY POLICE SERVICES POLICE COMMUNICATIONS ANIMAL CONTROL FIRE /AMBULANCE SERVICES EMERGENCY MANAGEMENT OPERATIONS Budgetary Variance with Basis Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) $ 6,377,986 $ 7,358,594 $ 7,125,859 $ 232,735 1,242,011 1,355,386 1,019,204 336,182 217,568 218,068 205,458 5,771,211 5,781,031 5,781,030 12,610 141 ,759 141 ,759 11 9,008 22,751 TOTAL PUBLIC SAFETY $ 13,750,535 $ 14,854,838 $ 14,250,559 $ 604,279 (Continued) See independent auditor's report as it relates to required supplementary information. RSI Page 17 BUDGETARY COMPARISON SCHEDULE -- GENERAL FUND -- Continued CITY OF OWASSO, OKLAHOMA For the fiscal year ended June 30, 2021 Charges to Appropriations (Outflows): PUBLIC WORKS STREETS Budgeted Amounts Original Final $ 929,515 $ 1,049 $ Budgetary Variance with Basis Final Budget Actual Positive Amounts (Negative) 1,048 $ 1 ENGINEERING 857,081 906,357 832,561 73,796 CEMETERY 111,085 128,410 74,422 53,988 STORMWATER 557,141 579,929 451,615 128,314 TOTAL PUBLIC WORKS $ 2,454,822 $ 1,615,745 $ 1,359,646 $ 256,099 (Continued) See independent auditor's report as it relates to required supplementary information. RSI Page 18 BUDGETARY COMPARISON SCHEDULE -- GENERAL FUND -- Continued CITY OF OWASSO, OKLAHOMA For the fiscal year ended June 30, 2021 See independent auditor's report as it relates to required supplementary information. RSI Page 19 Budgetary Variance with Basis Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) Charges to Appropriations (Outflows): CULTURE AND RECREATION CULTURE AND RECREATION $ 504,481 $ 588,122 $ 507,204 $ 80,918 COMMUNITY CENTER 403,971 445,166 385,808 59,358 PARK MAINTENANCE 614,744 667,677 497,407 170,270 HISTORICAL MUSEUM 32,679 34,579 31,225 3,354 TOTAL CULTURE AND RECREATION $ 1,555,875 $ 1,735,544 $ 1,421,644 $ 313,900 ECONOMIC DEVELOPMENT $ 205,158 $ 208,071 $ 193,056 $ 15,015 COMMUNITY DEVELOPMENT $ 852,550 $ 878,713 $ 836,860 $ 41,853 OTHER FINANCING USES Transfers to other funds 27,806,995 33,411,846 32,828,578 583,268 TOTAL OTHER FINANCING USES $ 27,806,995 $ 33,411,846 $ 32,828,578 $ 583,268 Total Charges to Appropriations $ 50,317,243 $ 57,899,341 $ 55,339,169 $ 2,560,172 Ending Budgetary Fund Balance $ 4,431,914 $ 5,989,327 $ 12,174,163 $ 6,184,836 (Continued) See independent auditor's report as it relates to required supplementary information. RSI Page 19 BUDGETARY COMPARISON SCHEDULE -- GENERAL FUND -- Continued CITY OF OWASSO, OKLAHOMA For the fiscal year ended June 30, 2021 Reconciliation of the General Fund Balance Sheet to the Budgetary Comparison Schedule - General Fund Fund balance - general fund $ 15,491,278 Receivables not recognized for budgetary basis Sales Tax Receivable (3,844,877) Use Tax Receivable (528,730) Other Tax Receivable (68,828) Franchise Tax Receivable (143,670) Court Fines Receivable net of uncollectible (20,885) False Alarm Fines Receivable net of uncollectible (3,850) Prepaid Fees (51,205) Plus receipts not recognized as revenue for GAAP 47,561 Plus GAAP expenditure accruals not recognized for budgetary basis 1,297,369 Fund balance - budgetary basis $ 12,174,163 (Concluded) See independent auditor's report as it relates to required supplementary information. RSI Page 20 Major Special Revenue Fund Half -Penny Sales Tax Fund: Accounts for half -penny sales tax revenue. Funds are restricted to operational or capital expenditures for Police, Fire, and Streets functions. See independent auditor's report as it relates to required supplementary information. RSI Page 21 BUDGETARY COMPARISON SCHEDULE -- HALF -PENNY SALES TAX FUND CITY OF OWASSO, OKLAHOMA For the fiscal year ended June 30, 2021 HALF -PENNY SALES TAX FUND Charges to Appropriations (Outflows): Public Safety Fire $ 1,724,751 $ 1,724,751 $ 1,446,319 $ 278,432 Police 1,780,015 2,272,184 2,090,999 181,185 Public Works Streets 1,478,386 2,935,297 2,612,860 322,437 Total charges to appropriation $ 4,983,152 $ 6,932,232 $ 6,150,178 $ 782,054 Total Charges to Appropriations $ 4,983,152 $ 6,932,232 $ 6,150,178 $ 782,054 Ending Budgetary Fund Balance $ 4,982,132 $ 4,557,489 $ 5,883,235 $ 1,325,746 (Continued) See independent auditor's report as it relates to required supplementary information. RSI Page 22 Budgetary Variance with Basis Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) Beginning Budgetary Fund Balance $ 4,341,374 $ 6,177,394 $ 6,177,394 $ - Resources (Inflows): SALES TAX 4,342,820 4,342,820 4,878,804 535,984 MISCELLANEOUS - - 13,300 13,300 INVESTMENT INCOME 39,992 39,992 34,400 (5,592) OTHER FINANCING SOURCES Transfers from other funds 1,241,098 929,515 929,515 - Total Resources (Inflows) 5,623,910 5,312,327 5,856,019 543,692 Amount available for appropriation $ 9,965,284 $ 1 1,489,721 L12,033,413 $ 543,692 Charges to Appropriations (Outflows): Public Safety Fire $ 1,724,751 $ 1,724,751 $ 1,446,319 $ 278,432 Police 1,780,015 2,272,184 2,090,999 181,185 Public Works Streets 1,478,386 2,935,297 2,612,860 322,437 Total charges to appropriation $ 4,983,152 $ 6,932,232 $ 6,150,178 $ 782,054 Total Charges to Appropriations $ 4,983,152 $ 6,932,232 $ 6,150,178 $ 782,054 Ending Budgetary Fund Balance $ 4,982,132 $ 4,557,489 $ 5,883,235 $ 1,325,746 (Continued) See independent auditor's report as it relates to required supplementary information. RSI Page 22 BUDGETARY COMPARISON SCHEDULE -- HALF -PENNY SALES TAX FUND -- Continued CITY OF OWASSO, OKLAHOMA For the fiscal year ended June 30, 2021 Reconciliation of the General Fund Balance Sheet to the Budgetary Comparison Schedule - General Fund Fund balance - half -penny fund $ 6,527,551 Receivables not recognized for budgetary basis Sales Tax Receivable (644,316) Fund balance - budgetary basis $ 5,883,235 (Concluded) See independent auditor's report as it relates to required supplementary information. RSI Page 23 OTHER SUPPLEMENTARY INFORMATION Nonmajor Governmental Funds Special Revenue Funds: Special Revenue Funds are used to account for the proceeds of specific revenue sources that are legally or administratively restricted or committed to expenditure for certain purposes. The reporting entity includes the following special revenue funds: • Ambulance Service Fund - Accounts for the revenue received from ambulance subscriptions and billings. Allocated revenue is 857o of receipts for ambulance billings and subscriptions. • Emergency 911 Fund - Accounts for the revenue received from the emergency service fee on telephone bills. Funds are used to pay monthly service charges for the 911 system. Remaining funds may be used for any other emergency communications need. • Cemetery Care Fund - Accounts for 12.57o of revenue from cemetery service fees (lot sales and interments). These funds may only be used for capital improvements to the cemetery. • Emergency Siren Fund - Accounts for the per acre fees received when new subdivisions are platted as required by subdivision regulations. Funds are used for the acquisition and /or purchase of emergency sirens. • Juvenile Court Fund - Accounts for fines generated as a result of prosecution of juveniles under the "Agreement for Municipal Court Jurisdiction Concerning Juveniles." Funds are used for local programs that address problems of juvenile crime. • Hotel Tax Fund - Accounts for a 37o hotel tax to be used in economic development and promotion of tourism and a 27o hotel tax designated to fund the Owasso Strong Neighborhoods Initiative. • Stormwater Management Fund - Established by ordinance to account for revenues derived from the stormwater system service charge. Funds are used for expenses attributable to stormwater management services. Capital Proiect Funds: Capital Project Funds are used to account for resources restricted, committed, or assigned for the acquisition or construction of specific capital projects or items. The reporting entity includes the following capital project funds: • Ambulance Capital Fund - Accounts for the fifteen percent (157o) of revenue from ambulance billings and subscriptions. Expenditures are for ambulance capital outlay for ambulance service. • Tax Incremental Financing Fund - Accounts for two cent sales tax revenue from businesses opened on or after December 20, 2016, located within the Redbud District (TIF) as well as property tax generated from increased valuation within the TIF. • Park Development Fund - Accounts for revenue received from building permit charges required by ordinance as in- lieu -of payments in subdivisions that do not donate park property. Funds are used for improvements to and development of the park system. • Capital Project Grant Fund - Accounts for grant revenue from state and federal grants. Funds are used for capital improvements as specified in grant contracts. Debt Service Fund: The debt service fund accounts for ad- valorem taxes levied by the City for use in retiring judgments and their related interest expense. Issuance of General Obligation debt requires voter approval. The City neither has any outstanding General Obligation debt nor voter approval to issue General Obligation debt. OSI Page 1 COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS CITY OF OWASSO, OKLAHOMA June 30, 2021 OSI Page 2 SPECIAL REVENUE FUNDS Ambulance Emergency Cemetery Emergency Juvenile Hotel Stormwater Service 911 Care Siren Court Tax Management Fund Fund Fund Fund Fund Fund Fund ASSETS Cash and cash equivalents $ 506,532 $ 413,549 $ 7,618 $ 45,900 $ 18,116 $ 1,512,948 $ 2,379,854 Investments 48,352 39,476 727 4,381 1,729 144,421 227,172 Due from other governments 26,385 Accounts receivable, net 780,788 58,992 201,932 TOTAL ASSETS $ 1,335,672 $ 479,410 $ 8,345 $ 50,281 $ 19,845 $ 1,716,361 $ 2,808,958 LIABILITIES Accounts payable $ 70,669 $ 9,165 $ 11,528 $ 240,646 Accrued payroll liabilities 495 20,181 4,631 4,093 Due to other funds 258 Unearned revenue 384 Retainage 258,508 TOTAL LIABILITIES 71,806 29,346 16,159 503,247 DEFERRED INFLOWS OF RESOURCES Unavailable revenue- charges For services 494,150 FUND EQUITY Fund Balances: Restricted 450,064 8,345 19,845 1,700,202 Committed 769,716 50,281 2,305,711 TOTAL FUND BALANCE 769,716 450,064 8,345 50,281 19,845 1,700,202 2,305,711 TOTAL LIABILITES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES $ 1,335,672 $ 479,410 $ 8,345 $ 50,281 $ 19,845 $ 1,716,361 $ 2,808,958 (Continued) OSI Page 2 COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS CITY OF OWASSO, OKLAHOMA June 30, 2021 ASSETS Cash and cash equivalents Investments Due from other governments Accounts receivable, net LIABILITIES Accounts payable Accrued payroll liabilities Due to other funds Unearned revenue Retainage DEFERRED INFLOWS OF RESOURCES Unavailable revenue - charges for services FUND EQUITY Fund Balances: Restricted - - - - 1,109 2,179,565 Committed 440,543 114,741 3,680,992 TOTAL FUND BALANCE 440,543 114,741 11109 5,860,557 TOTAL LIABILITES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES $ 440,543 $ 60,666 $ 115,971 $ 53,500 $ 1,109 $ 7,090,661 (Concluded) OSI Page 3 CAPITAL PROJECTS FUNDS Nonmajor Ambulance Tax Incremental Park Capital Debt Governmental Capital Financing Development Project Grant Service Fund Fund Fund Fund Fund Fund Totals $ 388,154 $ 30,710 $ 1 05,865 $ 909 $ 5,410,155 37,052 2,931 10,106 87 516,434 27,025 53,500 113 107,023 15,337 1,057,049 TOTAL ASSETS $ 440,543 $ 60,666 $ 115,971 $ 53,500 $ 1,109 $ 7,090,661 $ 1,230 $ 53,500 $ 386,738 29,400 60,666 60,924 384 258,508 TOTAL LIABILITIES 60,666 1,230 53,500 735,954 494,150 Restricted 1,109 2,179,565 Committed 440,543 114,741 3,680,992 TOTAL FUND BALANCE 440,543 114,741 11109 5,860,557 TOTAL LIABILITES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES $ 440,543 $ 60,666 $ 115,971 $ 53,500 $ 1,109 $ 7,090,661 (Concluded) OSI Page 3 COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE NONMAJOR GOVERNMENTAL FUNDS CITY OF OWASSO, OKLAHOMA For the fiscal year ended June 30, 2021 REVENUES Intergovernmental Taxes Charges for services Fines and forfeitures Licenses and permits Investment income Miscellaneous EXPENDITURES C urrent: Public safety Economic development Public works Capital outlay Ambulance Emergency Cemetery Emergency Juvenile Hotel Stormwater Service 911 Care Siren Court Tax Management Fund Fund Fund Fund Fund Fund Fund $ 244,194 $ 313,600 467,216 1,903,250 2,263 1,630,442 840 15,078 1,303 1,751 30 178 81 6,558 13,387 673 107 TOTAL REVENUES 2,149,420 315,458 2,293 15,256 921 473,774 1,643,829 TOTAL EXPENDITURES Revenues over (under) expenditures Other Financing Uses: Transfers out Revenues and other sources over (under) expenditures and other uses FUND BALANCE- BEGINNING OF YEAR FUND BALANCE - END OF YEAR 1,715,678 264,032 24,964 1,740,642 264,032 408,778 51,426 2,293 15,256 921 275,263 507,001 1,991,078 275,263 2,498,079 198,511 (854,250) 408,778 51,426 2,293 15,256 921 198,511 (854,250) 360,938 398,638 6,052 35,025 18,924 1,501,691 3,159,961 $ 769,716 $ 450,064 $ 8,345 $ 50,281 $ 19,845 $ 1,700,202 $ 2,305,711 (Continued) OSI Page 4 COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE NONMAJOR GOVERNMENTAL FUNDS CITY OF OWASSO, OKLAHOMA For the fiscal year ended June 30, 2021 REVENUES: Intergovernmental Taxes Charges for services Fines and forfeitures Licenses and permits Investment income Miscellaneous EXPENDITURES: Current: Public safety Economic development Public works Capital outlay TOTAL REVENUES TOTAL EXPENDITURES Revenues over (under) expenditures Other Financing Uses: Transfers out Revenues and other sources over (under) expenditures and other uses FUND BALANCE - BEGINNING OF YEAR FUND BALANCE - END OF YEAR 9,336 40,092 2,029, 138 275,263 507,001 252,035 14,730 53,500 2,336,307 261,371 - 14,730 53,500 40,092 5,147,709 103,520 394,755 73,119 275,850 921 671,100 (394, 755) (275,850) (670, 605) 103,520 - 73,119 - 921 495 337,023 41,622 188 5,860,062 $ 440,543 $ $ 114,741 $ - $ 1,109 $ 5,860,557 (Concluded) OSI Page 5 CAPITAL PROJECTS FUNDS Nonmajor Ambulance Tax Incremental Park Capital Debt Governmental Capital Financing Development Project Grant Service Fund Totals $ 329,350 $ 887,144 394,660 40,943 902,819 335,247 3,871,202 840 87,500 102,578 1,426 95 349 70 25,228 28,218 28,998 364,891 394,755 87,849 329,350 41,013 5,818,809 9,336 40,092 2,029, 138 275,263 507,001 252,035 14,730 53,500 2,336,307 261,371 - 14,730 53,500 40,092 5,147,709 103,520 394,755 73,119 275,850 921 671,100 (394, 755) (275,850) (670, 605) 103,520 - 73,119 - 921 495 337,023 41,622 188 5,860,062 $ 440,543 $ $ 114,741 $ - $ 1,109 $ 5,860,557 (Concluded) OSI Page 5 BUDGETARY COMPARISON SCHEDULE -- OTHER GOVERNMENTAL FUNDS CITY OF OWASSO, OKLAHOMA For the fiscal year ended June 30, 2021 AMBULANCE SERVICE FUND Budgetary Variance with Basis Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) Beginning Budgetary Fund Balance $ 48,370 $ 93,166 $ 93,166 $ Resources (Inflows): CHARGES FOR SERVICES 1,753,779 1,753,779 1,884,767 130,988 INTERGOVERNMENTAL 244,194 244,194 MISCELLANEOUS 673 673 INVESTMENT INCOME 375 375 1,303 928 Tofal Resources (inflows) 1,754,154 1,754,154 2,130,937 376,783 Amounf available for appropriafion $ 1,802,524 $ 1,847,320 $ 2,224,103 $ 376,783 Charges fo Appropriations (Outflows): Public Safety 1,740,642 1,740,642 1,740,642 Tofal Chargesfo Appropriations $ 1,740,642 $ 1,740,642 $ 1,740,642 $ - Ending Budgetary Fund Balance $ 61,882 $ 106,678 $ 483,461 $ 376,783 (Continued) OSI Page 6 BUDGETARY COMPARISON SCHEDULE -- OTHER GOVERNMENTAL FUNDS CITY OF OWASSO, OKLAHOMA For the fiscal year ended June 30, 2021 EMERGENCY -911 FUND Budgetary Variance with Basis Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) Beginning Budgetary Fund Balance $ 313,889 $ 371,682 $ 371,682 Resources (Inflows): CHARGES FOR SERVICES 313,796 313,796 314,171 375 MISCELLANEOUS 107 107 INVESTMENT INCOME 2,144 2,144 1,751 (393) Total Resources (Inflows) 315,940 315,940 316,029 89 Amount available for appropriation $ 629,829 $ 687,622 $ 687,711 $ 89 Charges to Appropriations (Outflows): Public Safety 303,850 307,368 264,032 43,336 Total Charges to Appropriations $ 303,850 $ 307,368 $ 264,032 $ 43,336 Ending Budgetary Fund Balance $ 325,979 $ 380,254 $ 423,679 $ 43,425 (Continued) OSI Page 7 BUDGETARY COMPARISON SCHEDULE -- OTHER GOVERNMENTAL FUNDS CITY OF OWASSO, OKLAHOMA For the fiscal year ended June 30, 2021 CEMETERY CARE FUND Budgetary Variance with Basis Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) Beginning Budgetary Fund Balance $ 3,756 $ 6,052 $ 6,052 $ Resources (Inflows): CHARGES FOR SERVICES 800 800 2,263 1,463 INVESTMENT INCOME 29 29 30 1 Total Resources (Inflows) 829 829 2,293 1,464 Amount available for appropriation $ 4,585 $ 6,881 $ 8,345 $ 1,464 Charges to Appropriations (Outflows): Public Works 1,850 1,850 1,850 Total Charges to Appropriations $ 1,850 $ 1,850 $ - $ 1,850 Ending Budgetary Fund Balance $ 2,735 $ 5,031 $ 8,345 $ 3,314 (Continued) OSI Page 8 BUDGETARY COMPARISON SCHEDULE -- OTHER GOVERNMENTAL FUNDS CITY OF OWASSO, OKLAHOMA For the fiscal year ended June 30, 2021 EMERGENCY SIREN FUND Beginning Budgetary Fund Balance Resources (Inflows): CHARGES FOR SERVICES INVESTMENT INCOME Total Resources (Inflows) Amount available for appropriation Charges to Appropriations (Outflows): Public Safety Total Charges to Appropriations Ending Budgetary Fund Balance Budgeted Amounts Original Final $ 24,954 $ 35,025 $ Budgetary Variance with Basis Final Budget Actual Positive Amounts (Negative) 35,025 $ 1,557 1,557 15,078 13,521 210 210 178 (32) 1,767 1,767 15,256 13,489 $ 26,721 $ 36,792 $ 50,281 $ 13,489 10,000 10,000 10,000 $ 10,000 $ 10,000 $ - $ 10,000 $ 16,721 $ 26,792 $ 50,281 $ 23,489 (Continued) OSI Page 9 BUDGETARY COMPARISON SCHEDULE -- OTHER GOVERNMENTAL FUNDS CITY OF OWASSO, OKLAHOMA For the fiscal year ended June 30, 2021 JUVENILE COURT FUND Beginning Budgetary Fund Balance Resources (Inflows): CHARGES FOR SERVICES INVESTMENT INCOME Total Resources (Inflows) Amount available for appropriation Charges to Appropriations (Outflows): General Government Total Charges to Appropriations Ending Budgetary Fund Balance Budgeted Amounts Original Final $ 13,288 $ 18,923 $ Budgetary Variance with Basis Final Budget Actual Positive Amounts (Negative) 18,923 $ 2,246 2,246 840 (1,406) 137 137 82 (55) 2,383 2,383 922 (1,461) $ 15,671 $ 21,306 $ 19,845 $ (1,461) 10,000 10,000 10,000 $ 10,000 $ 10,000 $ - $ 10,000 $ 5,671 $ 11,306 $ 19,845 $ 8,539 (Continued) OSI Page 10 BUDGETARY COMPARISON SCHEDULE --OTHER GOVERNMENTAL FUNDS CITY OF OWASSO, OKLAHOMA For the fiscal year ended June 30, 2021 HOTEL TAX FUND Beginning Budgetary Fund Balance Resources (Inflows): HOTEL TAX INVESTMENT INCOME Total Resources (Inflows) Amount available for appropriation Charges to Appropriations (Outflows): ECONOMIC DEVELOPMENT STRONG NEIGHBORHOOD INITIATIVE Total Charges to Appropriations Ending Budgetary Fund Balance Budgeted Amounts Original $ 1,287,208 $ Final 1,459, 728 $ Budgetary Variance with Basis Final Budget Actual Positive Amounts (Negative) $ 321,553 $ 473,368 $ 1,459,728 $ 306,577 306,577 450,185 143,608 8,613 8,613 6,559 (2,054) $ 321,553 $ 473,368 $ 275,264 $ 198,104 315,190 315,190 456,744 141,554 $ 1,602,398 $ 1,774,918 $ 1,916,472 $ 141,554 146,081 284,856 87,348 197,508 175,472 188,512 187,916 596 $ 321,553 $ 473,368 $ 275,264 $ 198,104 $ 1,280,845 $ 1,301,550 $ 1,641,208 $ 339,658 (Continued) OSI Page 11 BUDGETARY COMPARISON SCHEDULE -- OTHER GOVERNMENTAL FUNDS CITY OF OWASSO, OKLAHOMA For the fiscal year ended June 30, 2021 STORMWATER MANAGEMENT FUND Beginning Budgetary Fund Balance Resources (Inflows): CHARGES FOR SERVICES INVESTMENT INCOME Total Resources (Inflows) Amount available for appropriation Charges to Appropriations (Outflows): Public Works Total Charges to Appropriations Ending Budgetary Fund Balance Budgeted Amounts Original Final $ 410,465 $ 3,006,993 $ Budgetary Variance with Basis Final Budget Actual Positive Amounts (Negative) 3,006,993 $ 1,509,769 1,509,769 1,581,478 71,709 16,760 16,760 13,387 (3,373) 1,526,529 1,526,529 1,594,865 68,336 $ 1,936,994 $ 4,533,522 $ 4,601,858 $ 68,336 1,101,714 3,654,893 2,239,570 1,415,323 $ 1,101,714 $ 3,654,893 $ 2,239,570 $ 1,415,323 $ 835,280 $ 878,629 $ 2,362,288 $ 1,483,659 (Continued) OSI Page 12 BUDGETARY COMPARISON SCHEDULE -- OTHER GOVERNMENTAL FUNDS CITY OF OWASSO, OKLAHOMA For the fiscal year ended June 30, 2021 AMBULANCE CAPITAL FUND Budgetary Variance with Basis Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) Beginning Budgetary Fund Balance $ 332,703 $ 324,320 $ 324,320 Resources (Inflows): CHARGES FOR SERVICES 318,980 318,980 332,613 13,633 MISCELLANEOUS 28,218 28,218 INVESTMENT INCOME 2,039 2,039 1,426 (613) Total Resources (Inflows) 321,019 321,019 362,257 41,238 Amount available for appropriation $ 653,722 $ 645,339 $ 686,577 $ 41,238 Charges to Appropriations (Outflows): Public Safety 329,675 329,675 261,371 68,304 Total Charges to Appropriations $ 329,675 $ 329,675 $ 261,371 $ 68,304 Ending Budgetary Fund Balance $ 324,047 $ 315,664 $ 425,206 $ 109,542 (Continued) OSI Page 13 BUDGETARY COMPARISON SCHEDULE -- OTHER GOVERNMENTAL FUNDS CITY OF OWASSO, OKLAHOMA For the fiscal year ended June 30, 2021 TAX INCREMENTAL FINANCING FUND Beginning Budgetary Fund Balance Resources (Inflows): SALES TAX AD VALOREM TAX INVESTMENT INCOME Total Resources (Inflows) Amount available for appropriation Charges to Appropriations (Outflows): Other Uses Transfers Out Total Charges to Appropriations Ending Budgetary Fund Balance Budgetary Basis Budgeted Amounts Actual Original Final Amounts Variance with Final Budget Positive (Negative) 109,020 109,020 147,628 38,608 244,248 244,248 239,296 (4,952) 110 110 95 (15) 353,378 353,378 387,019 33,641 $ 353,378 $ 353,378 $ 387,019 $ 33,641 353,378 353,378 353,378 $ 353,378 $ 353,378 $ 353,378 $ - $ - $ - $ 33,641 $ 33,641 (Continued) OSI Page 14 BUDGETARY COMPARISON SCHEDULE -- OTHER GOVERNMENTAL FUNDS CITY OF OWASSO, OKLAHOMA For the fiscal year ended June 30, 2021 PARK DEVELOPMENT FUND Beginning Budgetary Fund Balance Resources (Inflows): LICENSES & PERMITS INVESTMENT INCOME Total Resources (Inflows) Amount available for appropriation Charges to Appropriations (Outflows): Capital Outlay Total Charges to Appropriations Ending Budgetary Fund Balance Budgeted Amounts Original Final $ 17,833 $ 41,622 $ Budgetary Variance with Basis Final Budget Actual Positive Amounts (Negative) 33,203 33,203 41,622 $ 32,100 32,100 87,500 55,400 1,103 1,103 349 (754) 33,203 33,203 87,849 54,646 $ 51,036 $ 74,825 $ 129,471 $ 54,646 51,000 62,500 14,730 47,770 $ 51,000 $ 62,500 $ 14,730 $ 47,770 $ 36 $ 12,325 $ 114,741 $ 102,416 (Continued) OSI Page 15 BUDGETARY COMPARISON SCHEDULE -- OTHER GOVERNMENTAL FUNDS CITY OF OWASSO, OKLAHOMA For the fiscal year ended June 30, 2021 CAPITAL PROJECTS GRANT FUND Beginning Budgetary Fund Balance Resources (Inflows): INTERGOVERNMENTAL Amount available for appropriation Charges to Appropriations (Outflows): Capital Outlay Total Charges to Appropriations Ending Budgetary Fund Balance Budgetary Basis Budgeted Amounts Actual Original Final Amounts Variance with Final Budget Positive (Negative) 134,000 1,413,523 329,350 (1,084,173) $ 134,000 $ 1,413,523 $ 329,350 $ 1,084,173 $ 134,000 $1,413,523 $ 329,350 $ (1,084,173) $ 134,000 $ 1,413,523 $ 329,350 $ 1,084,173 $ 134,000 $ 1,413,523 $ 329,350 $ 1,084,173 (Continued) OSI Page 16 BUDGETARY COMPARISON SCHEDULE -- OTHER GOVERNMENTAL FUNDS CITY OF OWASSO, OKLAHOMA For the fiscal year ended June 30, 2021 DEBT SERVICE FUND Beginning Budgetary Fund Balance Resources (Inflows): AD VALOREM TAXES INTEREST Total Resources (Inflows) Amount available for appropriation Charges to Appropriations (Outflows): Other Uses Transfers Out Total Charges to Appropriations Ending Budgetary Fund Balance Budgeted Amounts Original Final $ 108 $ - $ 50,000 50,000 Budgetary Variance with Basis Final Budget Actual Positive Amounts (Negative) 41,018 (8,982) 50,054 50,054 41,088 (8,966) $ 50,162 $ 50,054 $ 41,088 $ (8,966) 50,000 50,000 40,092 9,908 $ 50,000 $ 50,000 $ 40,092 $ 9,908 $ 162 $ 54 $ 996 $ 942 (Concluded) OSI Page 17 Major Capital Project Funds Vision Recapture Tax Fund: Accounts for 55 /100th's sales tax revenue. Funds are restricted to capital expenditures for street projects approved by the Citizens of Owasso in January 2016. Capital Improvement Fund: Accounts for the funds remaining from the one -cent capital improvements sales tax after payment of principal and interest on debt to fund capital projects. The expenditure items in this budget are based on priorities and recommendations established by the capital improvements committee and approved by the City Council. OSI Page 18 BUDGETARY COMPARISON SCHEDULE -- MAJOR CAPITAL PROJECT FUNDS CITY OF OWASSO, OKLAHOMA For the fiscal year ended June 30, 2021 VISION RECAPTURE TAX FUND Beginning Budgetary Fund Balance VISION RECAPTURE SALES TAX INVESTMENT INCOME Total Resources (Inflows) Amount available for appropriation Charges to Appropriations (Outflows): Capital Outlay Total Charges to Appropriations Ending Budgetary Fund Balance Budgeted Amounts Original Final $ 1,529,288 $ 9,255,694 $ Budgetary Variance with Basis Final Budget Actual Positive Amounts (Negative) 9,255,694 $ 4,777,102 4,777,102 5,366,869 589,767 57,846 57,846 43,040 (14,806) 4,834,948 4,834,948 5,409,909 574,961 $ 6,364,236 $ 14,090,642 $ 14,665,603 $ 574,961 4,600,000 12,253,882 4,557,390 7,696,492 $ 4,600,000 $ 12,253,882 $ 4,557,390 $ 7,696,492 $ 1,764,236 $ 1,836,760 $ 10,108,213 $ 8,271,453 (Continued) OSI Page 19 BUDGETARY COMPARISON SCHEDULE -- VISION RECAPTURE FUND -- Continued CITY OF OWASSO, OKLAHOMA For the fiscal year ended June 30, 2021 Reconciliation of the Vision Recapture Fund Balance Sheet to the Budgetary Comparison Schedule - Vision Recapture Fund Fund balance - vision recapture fund $ 10,816,962 Receivables not recognized for budgetary basis Taxes Receivable (708,749) Fund balance - budgetary basis $ 10,108,213 (Concluded) OSI Page 20 BUDGETARY COMPARISON SCHEDULE -- MAJOR CAPITAL PROJECT FUNDS CITY OF OWASSO, OKLAHOMA For the fiscal year ended June 30, 2021 CAPITAL IMPROVEMENT FUND Beginning Budgetary Fund Balance Resources (Inflows): CHARGES FOR SERVICES INVESTMENT INCOME MISCELLANEOUS OTHER FINANCING SOURCES Transfers from other funds Total Resources (Inflows) Amount available for appropriation Charges to Appropriations (Outflows): Capital Outlay Total Charges to Appropriations Ending Budgetary Fund Balance Budgetary Variance with Basis Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) $ $ 3,003,883 $ 3,003,883 $ - 35,393 35,393 - 12,169 12,169 1,518,671 1,518,671 98,130 (1,420,541) 8,519,769 13,346,268 8,356,317 (4,989,951) 10,038,440 14,864,939 8,502,009 (6,362,930) $ 10,038,440 $ 17,868,822 $ 11,505,892 $ (6,362,930) 10,038,440 17,868,822 6,465,463 11,403,359 $ 10,038,440 $ 17,868,822 $ 6,465,463 $ 11,403,359 $ - $ - $ 5,040,429 $ 5,040,429 (Continued) OSI Page 21 BUDGETARY COMPARISON SCHEDULE -- CAPITAL IMPROVEMENT FUND -- Continued CITY OF OWASSO, OKLAHOMA For the fiscal year ended June 30, 2021 Reconciliation of the Capital Improvement Fund Balance Sheet to the Budgetary Comparison Schedule - Capital Improvement Fund Fund balance - Capital Improvement Fund $ 6,01 1,679 Assets not recognized for budgetary basis Land held for resale (458,280) Receivables not recognized for budgetary basis Taxes receivable (650,898) Plus payables not recognized as expense for GAAP 137,928 Fund balance - budgetary basis $ 5,040,429 (Concluded) OSI Page 22 Internal Service Funds • City Garage Fund - Accounts for the financing of goods and services provided by one department to other departments of the City. The city garage bills for vehicle parts and services used by other departments. • Worker's Comp Self- Insurance - Accounts for the funds reserved for the payment of expenses and administration for workers' compensation benefits for all City employees. Expenditures from this fund are approved by the City Council but, by ordinance, are not subject to limitations on spending amounts as are other City purchases. • General Liability / and Property Self- Insurance - Accounts for the funds reserved for payments of expenses of property claims and for collision repairs to city vehicles. The City carries only liability insurance on City vehicles. • Healthcare Self- Insurance - Accounts for the funds reserved for the payment of expenses and administration for healthcare benefits for all City employees. Plan is administered by a third -party administrator. OSI Page 23 COMBINING BALANCE SHEET INTERNAL SERVICE FUNDS CITY OF OWASSO, OKLAHOMA June 30, 2021 NET POSITION Investment in capital assets 214,242 - - - 214,242 Unrestricted 99,333 618,033 307,482 2,501,552 3 526 400 TOTAL NET POSITION L_31 3,575 $ 618,033 L_307,482 $ 2,501,552 L3,740,642 OSI Page 24 INTFRNAI City SFRVICF Workers' FUNDS General Healthcare Internal Garage Comp Liability Services Service Funds Fund Fund Fund Fund Totals ASSETS CURRENT ASSETS Cash and cash equivalents $ 150,706 $ 1,054,262 $ 284,591 $ 2,624,142 $ 4,113,701 Investments 14,386 100,636 27,166 250,491 392,679 Other receivables 997 997 Due from other funds 18,864 18,864 Prepaid items 39,593 39,593 TOTAL CURRENT ASSETS 183,956 1,154,898 311,757 2,915,223 4,565,834 NONCURRENT ASSETS Other depreciable capital assets, net 214,242 214,242 TOTAL ASSETS 398,198 1,154,898 311,757 2,915,223 4,780,076 DEFERRED OUTFLOWS OF RESOURCES Deferred outflows - OPEB 1,454 1,454 Deferred outflows - pension 53,867 2,895 56,762 TOTAL DEFERRED OUTFLOWS OF RESOURCES 55,321 2,895 58,216 LIABILITIES AND NET POSITION CURRENT LIABILITIES Accounts payable 21,374 8,071 4,275 23,359 57,079 Accrued payroll liabilities 9,870 9,870 Unearned revenue 112 112 Incurred but not reported claims 258,230 191,198 449,428 Accrued compensated absences 6,826 6,826 TOTAL CURRENT LIABILITIES 38,070 266,301 4,275 214,669 523,315 NONCURRENT LIABILITIES Pension liability 64,840 4,679 69,519 Net OPEB liability 24,193 Incurred but not reported claims 268,770 199,002 467,772 Accrued compensated absence 7,698 7,698 TOTAL NONCURRENT LIABILITIES 96,731 273,449 199,002 569,182 TOTAL LIABILITIES 134,801 539,750 4,275 413,671 1,092,497 DEFERRED INFLOWS OF RESOURCES Deferred inflows - OPEB 4,598 4,598 Deferred inflows - pension 545 10 555 TOTAL DEFERRED INFLOWS OF RESOURCES 5,143 10 5,153 NET POSITION Investment in capital assets 214,242 214,242 Unrestricted 99,333 618,033 307,482 2,501,552 3 526 400 TOTAL NET POSITION L_31 3,575 $ 618,033 L_307,482 $ 2,501,552 L3,740,642 OSI Page 24 COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN NET POSITION INTERNAL SERVICE FUNDS CITY OF OWASSO, OKLAHOMA For the fiscal year ended June 30, 2021 OPERATING REVENUES Charges for services: Infernal service charges for services $ 638,110 $ Other 30 TOTAL OPERATING REVENUES 638,140 677,449 $ 300,000 $ 302 42,836 677,751 342,836 6,514,439 $ 8,129,998 43,168 6,514,439 8,173,166 OPERATING EXPENSES INTERNAL SERVICE FUNDS City Workers' General Healthcare Internal Garage Comp Liability Services Service Funds Fund Fund Fund Fund Totals OPERATING REVENUES Charges for services: Infernal service charges for services $ 638,110 $ Other 30 TOTAL OPERATING REVENUES 638,140 677,449 $ 300,000 $ 302 42,836 677,751 342,836 6,514,439 $ 8,129,998 43,168 6,514,439 8,173,166 OPERATING EXPENSES Administration 157,521 355,362 1,061,385 1,574,268 Claims expense 77,837 52,883 4,753,128 4,883,848 City garage 613,916 613,916 Depreciation 25,610 25,610 TOTAL OPERATING EXPENSES 639,526 235,358 408,245 5,814,513 7,097,642 OPERATING INCOME (LOSS) (1,386) 442,393 (65,409) 699,926 1,075,524 NONOPERATING REVENUES (EXPENSES) Investment income 647 4,517 3,794 10,851 19,809 Net income (loss) before contributions and transfers (739) 446,910 (61,615) 710,777 1,095,333 CHANGE IN NET POSITION (739) 446,910 (61,615) 710,777 1,095,333 NET POSITION - BEGINNING 314,314 171,123 369,097 1,790,775 2,645,309 NET POSITION - ENDING $ 313,575 $ 618,033 $ 307,482 $ 2,501,552 $ 3,740,642 OSI Page 25 COMBINING STATEMENT OF CASH FLOWS--INTERNAL SERVICE FUNDS CITY OF OWASSO, OKLAHOMA For the fiscal year ended June 30, 2021 OSI Page 26 INTERNAL SERVICE FUNDS City Workers' General Healthcare Infernal Garage Comp Liability Services Service Funds Fund Totals CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers $ 638,110 $ 677,449 $ 300,000 $ 6,514,439 $ 8,129,998 Payments to suppliers (243,690) (307,822) (379,595) (5,967,418) (6,898,525) Payments to employees (371,855) (74,723) (446,578) Other receipts (payments) 3,095 1,387 42,836 47,318 NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES 25,660 296,291 36,759 547,021 832,213 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Sale/ (purchases) of capital assets 11,246 CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from sale of investments 2,259 (5,881) 11,078 6,536 13,992 Investment income received 647 4,517 3,794 10,851 19,809 NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES 2,906 1,364 14,872 17,387 33,801 NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 17,320 294,927 (21,887) 564,408 854,768 BALANCES - BEGINNING OF YEAR 133,386 759,335 306,478 2,059,734 3,258,933 BALANCES - END OF YEAR $ 150,706 $ 1,054,262 $ 284,591 $ 2,624,142 $ 4,113,701 (Continued) OSI Page 26 COMBINING STATEMENT OF CASH FLOWS--INTERNAL SERVICE FUNDS • Continued CITY OF OWASSO, OKLAHOMA For the fiscal year ended June 30, 2021 (Concluded) OSI Page 27 INTERNAL SERVICE FUNDS City Workers' General Healthcare Infernal Garage Comp Liability Services Service Funds Fund Totals RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES Operating income (loss) $ (1,386) $ 442,393 $ (65,409) $ 699,926 $ 1,075,524 Adjustments to reconcile operating income (loss) to net cash provided by (used in) operating activities: Depreciation expense 25,610 25,610 Change in assets and liabilities: Other receivables 9,668 27,888 (997) 36,559 Due from other funds (8,592) (8,592) Net OPEB liability 1,872 1,872 Pension liability 10,194 1,085 11,279 Accounts payable (3,209) (3,186) 762 (151,620) (157,253) Accrued payroll liabilities 3,545 (1,669) 1,876 Unearned revenue 112 112 Estimated liability for claims (152,000) (400) (152,400) Accrued compensated absences 2,374 2,374 NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES $ 25,660 $ 296,291 $ (36,759) $ 547,021 $ 832,213 (Concluded) OSI Page 27 BUDGETARY COMPARISON SCHEDULE CITY OF OWASSO, OKLAHOMA For the fiscal year ended June 30, 2021 CITY GARAGE FUND Beginning Budgetary Fund Balance CHARGES FOR SERVICES INVESTMENT INCOME MISCELLANEOUS INCOME Total Resources (Inflows) Amount available for appropriation Charges to Appropriations (Outflows): Budgeted Amounts Original Final $ 98,490 $ 129,394 $ 625,935 625,935 596 596 Budgetary Variance with Basis Final Budget Actual Positive Amounts (Negative) 129,394 $ 638,110 12,175 647 51 30 30 626,531 626,531 638,787 12,256 $ 725,021 $ 755,925 $ 768,181 $ 12,256 City Garage 681,576 681,576 615,468 66,108 Total Charges to Appropriations $ 681,576 $ 681,576 $ 615,468 $ 66,108 Ending Budgetary Fund Balance $ 43,445 $ 74,349 $ 152,713 $ 78,364 (Continued) OSI Page 28 BUDGETARY COMPARISON SCHEDULE CITY OF OWASSO, OKLAHOMA For the fiscal year ended June 30, 2021 SELF INSURANCE FUNDS Beginning Budgetary Fund Balance CHARGES FOR SERVICES INVESTMENT INCOME MISCELLANEOUS INCOME OTHER FINANCING SOURCES Transfers from other funds Total Resources (Inflows) Amount available for appropriation Charges to Appropriations (Outflows): Self Insurance Total Charges to Appropriations Ending Budgetary Fund Balance Budgeted Amounts Original Final $ 3,343,683 $ 3,363,749 $ 7,465,423 7,594,923 18,080 18,080 50,000 50,000 Budgetary Variance with Basis Final Budget Actual Positive Amounts (Negative) 3,363,749 $ 7,492,000 (102,923) 19,162 11082 43,138 43,138 (50,000) 7,533,503 7,663,003 7,554,300 (108,703) $ 10,877,186 $ 11,026,752 $ 10,918,049 $ (108,703) 7,495,008 7,624,508 6,571,615 1,052,893 $ 7,495,008 $ 7,624,508 $ 6,571,615 $ 1,052,893 $ 3,382,178 $ 3,402,244 $ 4,346,434 $ 944,190 (Concluded) OSI Page 29 STATISTICAL SECTION - UNAUDITED CITY OF OWASSO, OKLAHOMA STATISTICAL SECTION This part of the City's 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. In contrast to the financial section, the statistical section information is not subject to independent audit. Financial Trends These schedules contain trend information to help the reader understand how the government's financial performance and well -being have changed overtime. Revenue Capacity These schedules contain information to help the reader assess all revenue sources and the government's most significant local revenue source, sales tax. Debt Capacity This schedule includes information to help the reader assess the affordability of the government's current levels of outstanding debt and the government'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 This schedule contains service and infrastructure data to help the reader understand how the information in the government's financial report relates to the services the government provides and the activities it performs. S- STATISTICAL SECTION DEFINITIONS Page 1 Primary government Net investment in capital assets $ 109,797 $ 117,037 $ 132,684 $ 135,720 $ 148,659 $ 158,716 $ 168,524 $ 174,610 $ CITY OF OWASSO, OKLAHOMA 195,794 Restricted 5,873 6,183 7,338 10,782 12,783 16,615 17,742 23,765 23,353 26,970 Unrestricted 6,905 5,261 5,877 (9,940) (7,525) (9,511) (5,866) NET POSITION BY COMPONENT 5,302 12,207 Net Position $ 122,575 $ 128,481 $ 145,899 $ 136,562 $ 153,917 $ 165,820 $ 180,400 $ 199,709 $ 216,141 $ 234,971 (LAST TEN YEARS) Unrestricted as a Percent of Revenues 16.4% 12.6% 9.9% -21.4% -12.4% -16.1% -9.3% 2.0% 7.3% 15.9% Source: Respective Fiscal Years' Financial Statements - Statement of Net Position (accrual basis of accounting) The level of total unrestricted net position is an indication of the amount of unexpended and available resources the City has at a p oint in time to fund emergencies, shodfads, or other unexpected needs. (amounts expressed in thousands) *Implementation of GASB 68, Accounting and Financial Reporting For Pensions, resultedin the recording of a $12.8 million net pension liability in the Governmental activities 2012 2013 2014 2015* 2016 2017 ** 2018 2019 2020 2021 Governmental activities by $0.5 million in the Governmental activities, and by$0.1 million in the Business -type activities. Years pdorto FYE 2017 not restated Net investment in capital assets $ 81,026 $ 83,643 $ 94,166 $ 93,777 $ 104,330 $ 111,988 $ 128,471 $ 148,938 $ 162,940 $ 169,642 Restricted 3,509 3,849 4,396 8,464 10,690 15,050 16,434 22,866 22,256 25,583 Unrestricted 5,215 5,115 5,994 (8,700) (5,533) (6,607) (4,829) 23 2,233 5,239 Net Position $ 89,750 $ 92,607 $ 104,556 $ 93,541 $ 109,487 $ 120,431 $ 140,076 $ 171,827 $ 187,429 $ 200,464 Unrestricted as a Percent of Revenues 22.6% 19.5% 15.3% -28.5% -12.7% -15.7% -9.2% 0.0% 4.2% 9.6% Business -type activities Net investment in capital assets $ 28,771 $ 33,394 $ 38,518 $ 41,943 $ 44,329 $ 46,728 $ 40,053 $ 25,672 $ 50,943 $ 52,758 Restricted 2,364 2,334 2,942 2,318 2,093 1,565 1,308 899 1,097 1,387 Unrestricted 1,690 146 (117) (1,240) (1,992) (2,904) (1,037) 1,311 (23,328) (19,638) Net Position $ 32,825 $ 35,874 $ 41,343 $ 43,021 $ 44,430 $ 45,389 $ 40,324 $ 27,882 $ 28,712 $ 34,507 Unrestricted as a Percent of Revenues 8.9% 0.9% -0.6% -7.8% -1118% -172% -9.6% 41.3% - 127.7% -87.6% Primary government Net investment in capital assets $ 109,797 $ 117,037 $ 132,684 $ 135,720 $ 148,659 $ 158,716 $ 168,524 $ 174,610 $ 187,486 $ 195,794 Restricted 5,873 6,183 7,338 10,782 12,783 16,615 17,742 23,765 23,353 26,970 Unrestricted 6,905 5,261 5,877 (9,940) (7,525) (9,511) (5,866) 1,334 5,302 12,207 Net Position $ 122,575 $ 128,481 $ 145,899 $ 136,562 $ 153,917 $ 165,820 $ 180,400 $ 199,709 $ 216,141 $ 234,971 Unrestricted as a Percent of Revenues 16.4% 12.6% 9.9% -21.4% -12.4% -16.1% -9.3% 2.0% 7.3% 15.9% Source: Respective Fiscal Years' Financial Statements - Statement of Net Position The level of total unrestricted net position is an indication of the amount of unexpended and available resources the City has at a p oint in time to fund emergencies, shodfads, or other unexpected needs. *Implementation of GASB 68, Accounting and Financial Reporting For Pensions, resultedin the recording of a $12.8 million net pension liability in the Governmental activities statements in FY 2015. Prior years have not been restated *'Implementation of GASB 75, Accounting and Financial Reporting For Postemployment Benefits, resulted in a 2017 priorpedod adjustment increasing the net OPEB liability by $0.5 million in the Governmental activities, and by$0.1 million in the Business -type activities. Years pdorto FYE 2017 not restated S - FINANCIAL TRENDS Page 2 CITY OF OWASSO, OKLAHOMA CHANGES IN NET POSITION (LAST TEN YEARS) (accrual basis of accounting) (amounts expressed in thousands) 2012 2013 2014 2015 2016 Expenses Governmental activities: General government Public safety Community development * ** Recreation and culture Economic development Public works Total governmental activities expenses Business -type activities: Water Wastewater Sanitation Recycle center Economic development Golf course Total business -type activities expenses Total primary government expenses Program Revenue Governmental activities: Charges for services General government Public safety Community development * ** Recreation and culture Economic development Public works ** Operating grants and contributions Capital grants and contributions Total governmental activities program revenues Business -type activities: Charges for services Water Wastewater Sanitation Recycle center Golf course Capital grants and contributions Total business -type activities program revenues Total primary government program revenues Net(Expense)Revenue: Governmental activities Business -type activities Total primary government net (expenses) revenue General Revenues and Other Changes in Net Position Governmental activities Taxes Sales tax Use tax Franchise and public service taxes Cigarette/ tobacco tax ** Hotel taxes Alcoholic beverage tax" E-911 taxes ** Intergovernmental ** Investment income Miscellaneous ** Transfers - internal activity Total governmental activities Business -type activities Investment income Transfers - internal activity Total business -type activities Total primary government Changes in Net Position Governmental activities Business -type activities Total primary government $ 4,286 $ 4,952 $ 5,019 $ 5,128 $ 4,192 13,078 13,503 14,690 13,901 15,492 918 949 1,185 1,129 1,250 247 324 835 328 324 3,593 3,672 5,521 5,681 6,292 22,122 23,400 27,250 26,167 27,550 6,217 5,616 6,760 6,382 7,470 3,240 3,319 4,809 4,954 5,088 1,375 1,333 1,613 1,541 1,588 354 361 220 167 115 1,163 1,051 1,229 1,143 1,283 12,349 11,680 14,631 14,187 15,544 $ 34,471 $ 35,080 $ 41,881 $ 40,354 $ 43,094 $ 435 $ 500 $ 970 $ 627 $ 655 2,573 2,496 2,962 2,667 2,885 19 99 104 111 106 112 8 8 9 10 11 755 796 811 795 870 1,794 2,060 1,754 1,753 3,446 1,695 1,786 12,850 1,042 6,889 7,359 7,750 19,467 7,000 14,887 5,316 5,340 5,384 5,222 5,763 3,166 3,468 3,720 3,750 4,002 1,713 1,752 1,789 1,823 1,910 55 33 35 29 23 656 690 744 726 697 2,543 710 3,787 526 1,101 13,449 11,993 15,459 12,076 13,496 $ 20,808 $ 19,743 $ 34,926 $ 19,076 $ 28,383 (14,763) (15,650) (7,783) (19,167) (12,663) 1,100 313 828 (2,111) (2,048) $ (13,663) $ (15,337) $ (6,955) $ (21,278) $ (14,711) $ 18,470 $ 19,321 $ 21,254 $ 23,841 $ 28,421 549 708 800 968 1,128 1,129 1,032 1,235 1,389 1,202 266 245 247 276 n/a 294 334 386 412 402 46 51 54 57 n/a 205 217 216 210 n/a n/a n/a n/a n/a 601 48 40 34 30 30 173 175 130 99 259 (5,513) (3,615) (4,624) (3,777) (3,434) 15,667 18,508 19,732 23,505 28,609 23 22 17 22 22 5,513 3,615 4,624 3,777 3,434 5,536 3,637 4,641 3,799 3,456 $ 21,203 $ 22,145 $ 24,373 $ 27,304 $ 32,065 904 2,858 11,949 4,338 15,946 6,636 3,950 5,469 1,688 1,408 $ 7,540 $ 6,808 $ 17,418 $ 6,026 $ 17,354 (Continued) Source: Respective Fiscal Years' Financial Statements - Statement of Activities Certain balances from the statements were combined for comparative purposes -*Prior to 2016 combined with General Government S - FINANCIAL TRENDS Page 3 CITY OF OWASSO, OKLAHOMA CHANGES IN NET POSITION - continued (LAST TEN YEARS) (accrual basis of accounting) (amounts expressed in thousands) 2017 2018 2019 2020 2021 Expenses Governmental activities: General government Public safety Community development * ** Recreation and culture Economic development Public works Total governmental activities expenses Business -type activities: W a ter Wastewater So nitation Recycle center Economic development Golf course Total business -type activities expenses Total primary government expenses Program Revenue Governmental activities: Charges for services General government Public safety Community development * ** Recreation and culture Economic development Public works ** Operating grants and contributions Capital grants and contributions Total governmental activities program revenues Business -type activities: Charges for services Water Wastewater Sanitation Recycle center Golf course Capital grants and contributions Total business -type activities program revenues Total primary government program revenues Net (Expense) Revenue: Governmental activities Business -type activities Total primary government net (expenses) revenue General Revenues and Other Changes in Net Position Governmental activities Taxes Sales tax Use tax Franchise and public service taxes Cigarette/ tobacco tax ** Hotel taxes Alcoholic beverage tax** E -911 taxes** Intergovernmental ** Investment income Miscellaneous ** Transfers - internal activity Total governmental activities Business -type activities Investment income Transfers - internal activity Total business -type activities Total primary government Changes in Net Position Governmental activities Business -type activities Total primary government $ 4,636 $ 4,726 $ 4,415 $ 4,785 $ 4,834 17,430 19,473 17,527 22,805 24,915 858 818 744 752 842 1,494 1,560 1,617 1,882 1,901 367 426 456 476 471 6,329 5,795 7,199 7,645 8,482 31,114 32,798 31,958 38,345 41,445 7,370 7,403 6,909 7,909 7,106 5,247 5,174 5,338 5,533 5,416 1,697 1,695 1,790 1,938 1,921 200 190 182 233 293 308 359 1,447 1,453 1,399 1,517 1,527 15,961 15,915 15,618 17,438 16,622 $ 47,075 $ 48,713 $ 47,576 $ 55,783 $ 58,067 $ 514 $ 946 $ 678 $ 603 $ 593 3,208 2,816 3,058 2,903 2,561 47 50 55 38 330 136 139 94 93 103 18 18 19 16 14 1,092 1,233 1,433 1,620 1,892 509 2,884 2,947 3,587 6,196 4,741 2,337 2,308 2,915 799 10,265 10,423 10,592 11,775 12,488 6,260 6,591 6,427 6,782 7,888 4,323 4,578 4,776 4,946 5,775 2,003 2,127 2,281 2,356 2,577 39 36 19 17 33 740 761 733 837 801 1,346 427 804 2,107 405 14,711 14,520 15,040 17,045 17,479 $ 24,976 $ 24,943 $ 25,632 $ 28,820 $ 29,967 (20,849) (22,375) (21,366) (26,570) (28,957) 11,250) 11,395) 1578) 1393) 857 $ 122,099) $ 123,770) $ 121,944) $ 126,963) $ 128,100) $ 30,249 $ 33,752 $ 34,973 $ 36,600 $ 39,587 1,246 1,650 2,423 3,175 4,239 1,176 1,193 1,198 1,179 1,110 n/a 382 409 472 430 467 n/a 669 722 666 723 772 35 161 540 468 174 200 269 662 467 547 12,164) 3,864 12,183 1870) 14,903) 31,793 42,020 53,117 42,172 41,993 45 194 319 353 34 2,164 13,864) 112,183) 870 4,903 2,209 13,670) 111,864) 1,223 4,937 $ 34,002 $ 38,350 $ 41,253 $ 43,395 $ 46,930 10,944 19,645 31,751 15,602 13,036 959 15,065) 112,442) 830 5,794 $ 11,903 $ 14,580 $ 19,309 $ 16,432 $ 18,830 (Concluded) Source: Respective Fiscal Years' Financial Statements - Statement of Activities "Certain balances from the statements were combined for comparative purposes Prior to 2016 combined with General Government S - FINANCIAL TRENDS Page 4 CITY OF OWASSO, OKLAHOMA CHANGES IN FUND BALANCE OF GOVERNMENTAL FUNDS (LAST TEN YEARS) (modified accrual basis of accounting) (amounts expressed in thousands) 2012 2013 2014 2015 2016 Revenues Taxes Intergovernmental Charges for services Fines and forfeitures Licenses and permits Investment income Miscellaneous Total Governmental Revenue Expenditures Current: General government Public safety Community development Recreation and culture Economic development Public works ** Capital outlay Debt service - principal Total Governmental Expenditures Excess (deficiency) of revenues over expenditures $ 20,148 $ 21,060 $ 23,157 $ 26,046 $ 31,154 3,356 3,201 2,959 1,886 2,023 2,858 2,919 3,127 3,140 3,126 734 615 637 717 773 250 319 287 323 474 41 35 30 20 21 173 175 137 105 259 $ 27,560 $ 28,324 $ 30,334 $ 32,237 $ 37,830 $ 4,212 $ 4,342 $ 4,603 $ 4,805 $ 3,933 12,286 12,545 13,422 12,546 13,978 701 629 638 701 764 839 245 323 858 328 325 1,055 1,054 1,265 1,698 1,904 3,948 5,224 3,961 4,267 9,803 23 21 $ 22,398 $ 24,147 $ 24,810 $ 24,408 $ 31,483 $ 5,162 $ 4,177 $ 5,524 $ 7,829 $ 6,347 Other Financing Sources (Uses) Transfers in 13,420 16,285 17,150 20,056 22,882 Transfers out (18,932) (19,900) (21,770) (23,833) (26,316) Total Other Financing Sources (Uses) (5,512) (3,615) (4,620) (3,777) (3,434) Net Change in Fund Balances Fund Balance - Beginning of Year Fund Balance - End of Year Debt Service as a percentage of noncapital expenditures (350) 562 904 4,052 2,913 10,298 10,013 10,575 11,479 15,531 $ 9,948 $ 10,575 $ 11,479 $ 15,531 $ 18,444 0.12% 0.11% 0.00% 0.00% 0.00% (Continued) Source: Respective Fiscal Years' Financial Statements - Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds * Prior to 2016 combined with General Government ** Certain balances from the statements were combined for comparative purposes S - FINANCIAL TRENDS Page 5 CITY OF OWASSO, OKLAHOMA CHANGES IN FUND BALANCE OF GOVERNMENTAL FUNDS - continued (LAST TEN YEARS) (modified accrual basis of accounting) (amounts expressed in thousands) 2017 2018 2019 2020 2021 Revenues Taxes Intergovernmental Charges for services Fines and forfeitures Licenses and permits Investment income Miscellaneous Total Governmental Revenue Expenditures Current: General government Public safety Community development Recreation and culture Economic development Public works ** Capital outlay Debt service - principal Total Governmental Expenditures Excess (deficiency) of revenues over expenditures $ 33,052 $ 37,005 $ 39,147 $ 41,724 $ 45,685 4,307 5,097 5,816 4,436 7,142 3,251 3,948 4,022 4,170 4,672 603 461 335 298 234 271 281 216 286 440 25 145 479 431 154 232 773 847 209 291 $ 41 ,741 $ 47,710 $ 50,862 $ 51 ,554 $ 58,618 $ 4,027 $ 4,150 $ 3,761 $ 4,121 $ 4,159 16,392 18,312 18,635 19,934 20,825 825 795 724 713 824 1,052 1,103 1,091 1,269 1,305 357 420 451 455 468 2,397 1 ,470 2,749 2,935 3,525 9,759 22,121 27,091 18,923 15,167 $ 34,809 $ 48,371 $ 54,502 $ 48,350 $ 46,273 $ 6,932 $ (661) $ (3,640) $ 3,204 $ 12,345 Other Financing Sources (Uses) Transfers in 25,177 30,792 40,132 28,633 28,637 Transfers out (27,340) (26,955) (27,949) (29,503) (33,540) Total Other Financing Sources (Uses) (2,163) 3,837 12,183 (870) (4,903) Net Change in Fund Balances Fund Balance - Beginning of Year Fund Balance - End of Year Debt Service as a percentage of noncapital expenditures 4,769 3,176 8,543 2,334 7,442 18,444 23,213 26,389 34,932 37,266 $ 23,213 $ 26,389 $ 34,932 $ 37,266 $ 44,708 0.00% 0.00% 0.00% 0.00% 0.00% (Concluded) Source: Respective Fiscal Years' Financial Statements - Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds * Prior to 2016 combined with General Government ** Certain balances from the statements were combined for comparative purposes S - FINANCIAL TRENDS Page 6 CITY OF OWASSO, OKLAHOMA Source: Respective Fiscal Years' Financial Statements - Balance Sheet Governmental Funds * Prior to FY 2017. this amount was reflected in "Other' S - FINANCIAL TRENDS Page 7 FUND BALANCE OF GOVERNMENTAL FUNDS (LAST TEN YEARS) (modified accrual basis of accounting) (amounts expressed in thousands) 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 General Fund Nonspendable - advance to other funds 1,542 $ 911 $ 1,074 $ 1,429 $ 1,124 $ 51 Restricted for: Public safety 9 10 71 34 Other 4 64 45 72 8 12 Assigned 129 411 412 641 322 295 322 1,006 1,396 1,371 Unassigned 3,583 3,552 4,178 4,390 3,857 4,406 5,351 6,344 8,098 14,023 Total General Fund Balance 3,712 3,963 4,590 5,044 5,731 5,676 6,792 8,851 10,697 15,491 Other Governmental Funds Nonspendable - advance to other funds $ 458 $ 458 Restricted for: Culture and recreation 641 761 408 609 814 Economic development * 983 1,131 1,334 1,502 1,700 Public safety 244 297 270 839 1,540 2,090 3,049 4,184 5,357 5,333 Public works 1,744 1,844 2,088 1,874 1,665 Capital projects 2,615 2,784 3,713 6,628 6,363 10,166 10,362 14,726 13,437 16,829 Other 8 6 6 254 1,731 4 3 4 6 9 Committed: Public safety 427 338 287 349 942 552 456 330 396 820 Culture and recreation 270 205 232 Stormwatermanagement 1,221 1,260 1,116 1,195 1,091 1,367 1,917 2,488 3,160 2,306 Capital projects 875 961 1,089 613 631 835 469 379 555 Total Fund Balance 6,301 6,612 6,889 10,487 12,713 17,537 19,597 26,081 26,569 29,217 Total Governmental Fund Balance $ 10,013 $ 10,575 $ 11,479 $ 15,531 $ 18,444 $ 23,213 $ 26,389 $ 34,932 $ 37,266 $ 44,708 Source: Respective Fiscal Years' Financial Statements - Balance Sheet Governmental Funds * Prior to FY 2017. this amount was reflected in "Other' S - FINANCIAL TRENDS Page 7 CITY OF OWASSO, OKLAHOMA DIRECT AND OVERLAPPING SALES TAX RATES - AVERAGE (LAST TEN YEARS) Sources: Oklahoma Tax Commission * The 1% processing /admin fee paid to the State of Oklahoma out of the Citys' revenue was reduced to 0.5% in July 2016 ** Tulsa County increase became effective July 2014 * ** Half -Penny increase approved by voters began April 01, 2015 * * ** 55/ 100's Vision Tax Recapture increase approved by voters began January 1, 2017 S - REVENUE CAPACITY Page 8 * City of Rogers State of Total - Tulsa Total - Rogers YEAR Owasso Tulsa County County Oklahoma County County 2021 4.050% 0.367% 1.833% 4.500% 8.917% 10.383% 2020 4.050% 0.367% 1.833% 4.500% 8.917% 10.383% 2019 4.050% 0.367% 1.833% 4.500% 8.917% 10.383% 2018 4.050% 0.367% 1.833% 4.500% 8.917% 10.383% 2017 * * ** 4.050% 0.367% 1.833% 4.500% 8.917% 10.383% 2016 3.500% 0.917% 1.833% 4.500% 8.917% 9.833% 2015 * ** 3.500% 0.917% 1.833% 4.500% 8.917% 9.833% 2014 ** 3.000% 0.917% 1.833% 4.500% 8.417% 9.333% 2013 3.000% 0.850% 1.750% 4.500% 8.350% 9.250% 2012 3.000% 0.850% 1.500% 4.500% 8.350% 9.000% Sources: Oklahoma Tax Commission * The 1% processing /admin fee paid to the State of Oklahoma out of the Citys' revenue was reduced to 0.5% in July 2016 ** Tulsa County increase became effective July 2014 * ** Half -Penny increase approved by voters began April 01, 2015 * * ** 55/ 100's Vision Tax Recapture increase approved by voters began January 1, 2017 S - REVENUE CAPACITY Page 8 CITY OF OWASSO, OKLAHOMA GOVERNMENTAL - ACTIVITIES TAX REVENUES BY SOURCE (LAST TEN YEARS (accrual basis of accounting) (amounts expressed in thousands) Source: Respective Fiscal Years' Financial Statements - Government -Wide Statement of Activities S - REVENUE CAPACITY Page 9 Franchise & Public Service Year Sales Tax Use Tax Tax Hotel Tax Total 2021 $ 39,586 $ 4,239 $ 1,110 $ 467 $ 45,402 2020 36,599 3,175 1,179 430 41,383 2019 34,973 2,423 1,198 472 39,066 2018 33,752 1,650 1,193 410 37,005 2017 30,249 1,245 1,176 382 33,052 2016 28,421 1,129 1,202 402 31,154 2015 23,841 968 1,237 412 26,458 2014 21,254 800 1,235 386 23,675 2013 19,321 708 1,032 334 21,395 2012 18,470 549 1,129 294 20,442 Source: Respective Fiscal Years' Financial Statements - Government -Wide Statement of Activities S - REVENUE CAPACITY Page 9 NAICS CODE Sales Tax Remitter 44 -45 Retail Trade 72 Accommodation /Food Services 22 Utilities 42 Wholesale Trade 51 Information 71% All Other CITY OF OWASSO, OKLAHOMA PRINCIPAL SALES TAX REMITTERS CURRENT YEAR AND NINE YEARS AGO June 30, 2021 * 2021 $ 36,215,530 $ 406,140,288 Sources: Oklahoma Tax Commission * Gross Amount Reported Prior to Pmt of 0.5% Retention to OTC ** Gross Amount Reported Prior to Pmt of 1 % Retention to OTC ** 2012 Percentage of Total Revenue Amount Remitted Revenue Base Base $ 25,874,793 $ 290,1 73,743 71% 5,668,462 63,569,157 16% 1,242,044 13,928,945 3% 1,210,544 13,575,685 3% 580,619 6,511,375 2% 1,639,068 18,381,384 5% $ 36,215,530 $ 406,140,288 Sources: Oklahoma Tax Commission * Gross Amount Reported Prior to Pmt of 0.5% Retention to OTC ** Gross Amount Reported Prior to Pmt of 1 % Retention to OTC ** 2012 100.00% $ 20,153,991 $ 236,549,190 100.00% S — REVENUE CAPACITY Page 10 Percentage of Total Revenue Amount Remitted Revenue Base Base $ 14,349,105 $ 168,416,725 71% 2,927,898 34,365,000 15% 810,465 9,512,500 4% 548,568 6,438,592 3% 659,338 7,738,709 3% 858,617 10,077,664 4% 100.00% $ 20,153,991 $ 236,549,190 100.00% S — REVENUE CAPACITY Page 10 CITY OF OWASSO, OKLAHOMA PROGRAM REVENUE BY FUNCTION /PROGRAM (LAST TEN YEARS) (accrual basis of accounting) (amounts expressed in thousands) Program Revenue * Governmental activities: Charges for services General government Public safety Community development Recreation and culture Economic development Public works ** Operating grants and contributions Capital grants and contributions Total governmental activities program revenues Business -type activities: Charges for services Water Wastewater Sanitation Recycle center Golf course Capital grants and contributions Total business -type activities program revenues Total primary government program revenues 2012 2013 2014 2015 2016 $ 435 $ 500 $ 970 $ 627 $ 655 2,573 2,496 2,962 2,667 2,885 19 99 104 111 106 112 8 8 9 10 11 755 796 811 795 870 1,794 2,060 1,754 1,753 3,446 1,695 1,786 12,850 1,042 6,889 $ 7,359 $ 7,750 $ 19,467 $ 7,000 $ 14,887 $ 5,316 $ 5,340 $ 5,384 $ 5,222 $ 5,763 3,166 3,468 3,720 3,750 4,002 1,713 1,752 1,789 1,823 1,910 55 33 35 29 23 656 690 744 726 697 2,543 710 3,787 526 1,101 $ 13,449 $ 11,993 $ 15,459 $ 12,076 $ 13,496 $ 20,808 $ 19,743 $ 34,926 $ 19,076 $ 28,383 (Continued) Source: Respective Fiscal Years' Financial Statements - Statement of Activities * Prior to 2016 combined with General Government Certain balances from the statements were combined for comparative purposes S - REVENUE CAPACITY Page 11 CITY OF OWASSO, OKLAHOMA PROGRAM REVENUE BY FUNCTION /PROGRAM - continued (LAST TEN YEARS) (accrual basis of accounting) (amounts expressed in thousands) Program Revenue * Governmental activities: Charges for services General government Public safety Community development Recreation and culture Economic development Public works ** Operating grants and contributions Capital grants and contributions Total governmental activities program revenues Business -type activities: Charges for services Water Wastewater Sanitation Recycle center Golf course Capital grants and contributions Total business -type activities program revenues Total primary government program revenues 2017 2018 2019 2020 2021 $ 514 $ 946 $ 678 $ 603 $ 593 3,208 2,816 3,058 2,904 2,561 47 50 55 38 330 136 139 94 93 103 18 18 19 16 14 1,092 1,233 1,433 1,620 1,892 509 2,884 2,947 3,587 6,196 4,741 2,337 2,308 2,914 799 $ 10,265 $ 10,423 $ 10,592 $ 11,775 $ 12,488 $ 6,260 $ 6,591 $ 6,427 $ 6,782 $ 7,888 4,323 4,578 4,776 4,946 5,775 2,003 2,127 2,281 2,356 2,577 39 36 19 17 33 740 761 733 837 801 1,346 427 804 2,107 405 $ 14,711 $ 14,520 $ 15,040 $ 17,045 $ 17,479 $ 24,976 $ 24,943 $ 25,632 $ 28,820 $ 29,967 (Concluded) Source: Respective Fiscal Years' Financial Statements - Statement of Activities * Prior to 2016 combined with General Government Certain balances from the statements were combined for comparative purposes S - REVENUE CAPACITY Page 12 CITY OF OWASSO, OKLAHOMA RATIO OF OUTSTANDING DEBT TO REVENUE LAST TEN YEARS June 30, 2021 Business -Type Activities Debt 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 $ 35,499,422 $ 2,789,023 $ 33,280,000 $ 218,529 $ 71,786,971 $ 32,469,142 $ Outstanding $ 76,896,775 Total 21.696 Total Net Outstanding Debt as a 2,887,746 Outstanding Total Net 77,399,971 Outstanding 39,198,956 72,215,360 YEAR Notes Payable Premium on Revenue Capital Bond, Note & Less Bond Outstanding Government & Debt as Debt as Outstanding Percentage of Total Govemme 28,880,000 Notes Payable Notes, Net Leases, Net Capital Lease Reserves Debt Trust Authority Percentage Percentage of Debt per Capita Median & Trust Assets 16.396 Debt 0.1996 Revenue of Revenue Assets Household 83,930 47,193,932 21,982,431 25,211,501 63,292,246 39.896 Income 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 $ 35,499,422 $ 2,789,023 $ 33,280,000 $ 218,529 $ 71,786,971 $ 32,469,142 $ 39,317,829 $ 76,896,775 51.196 21.696 1,028 0.189 $ 332,451,921 36,685,343 2,887,746 37,555,000 271,882 77,399,971 38,231,015 39,198,956 72,215,360 54.396 24.396 1,053 0.1996 317,999,205 14,036,785 1,557 28,880,000 25,087 42,943,429 4,500,228 38,443,231 66,885,838 57.596 16.396 1,042 0.1996 263,731,329 15,355,331 4,671 31,750,000 83,930 47,193,932 21,982,431 25,211,501 63,292,246 39.896 18.796 689 0.2896 251,911,280 17,315,725 7,784 24,964,153 140,894 42,428,556 22,353,445 23,045,111 58,979,233 34.096 18.496 552 0.3496 230,509,522 19,669,794 378 6,257,519 196,039 26,123,730 2,850,473 23,273,257 60,449,413 38.596 13.096 645 0.2896 231,060,034 21,591,979 19,818 8,252,519 249,422 30,113,738 3,114,459 26,999,279 46,380,086 58.296 15.996 777 0.2496 189,145,344 22,553,577 43,480 10,857,519 - 33,454,576 3,748,143 29,662,953 59,799,381 49.696 17.896 873 0.2296 187,773,741 24,653,054 67,141 11,127,519 35,847,714 3,175,866 32,604,707 41,887,866 77.896 20.996 999 0.2396 170,909,526 25,303,889 90,803 14,887,519 40,282,211 3,212,409 36,978,999 42,011,370 88.096 23.896 1,171 0.1696 168,991,561 Source: City of Owasso audited annual financial statements Note: No general obligation debt was outstanding during this ten yearperiod. S - DEBT CAPACITY Page 13 Net Assessed Valuation (1) Debt Limit (2) Total net debt subject to limit (3) Total debt margin Total net debt applicable to the limit as a percentage of debt limit CITY OF OWASSO, OKLAHOMA COMPUTATION OF LEGAL DEBT MARGIN DEBT TO REVENUE June 30, 2021 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 $ 221,914 $ 226,513 $ 230,085 $ 236,009 $ 247,875 $ 261,285 $ 274,662 $ 284,351 $ 296,993 $ 305,223 22,191 22,651 23,009 23,601 24,788 26,129 27,466 28,435 29,699 30,522 $ 22,191 $ 22,651 $ 23,009 $ 23,601 $ 24,788 $ 26,129 $ 27,466 $ 28,435 $ 29,699 $ 30,522 Source: (1) Tulsa County Assessor & Rogers County Assessor - Net Assessed Valuation (2) Article 10, Section 26, Oklahoma Constitution - 10% of Net Assessed Valuation (3) Article 10, Section 27, Oklahoma Constitution 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% S — DEBT CAPACITY Page 14 CITY OF OWASSO, OKLAHOMA COMPUTATION OF DIRECT AND OVERLAPPING DEBT June 30, 2021 Nef Debf Governmenfal Unif Oufsfanding (1) Debf repaid wifh property faxes Counfies: Tulsa County $ 105,671,230 Rogers County - Independenf School Disfricf: Owasso (V -18) 60,825,000 City Direcf Debf Tofal Direcf and overlapping debf Source: Tulsa County & Rogers County Assessor's Offices Current year information not yet available (1) Net general bonded debt. (2) Percentage based on net assessed value of property. Esfimafed Percentage Applicable fo Esfimafed Share Cify of Owasso Applicable fo City (2) of Owasso 4.4% $ 4,648,580 2.9% - 4,648,580 100% 60,825,000 60, 825, 000 100% y 00,4/3,00U S — DEBT CAPACITY Page 15 SCHEDULE OF DEBT SERVICE COVERAGE REQUIREMENTS CITY OF OWASSO, OKLAHOMA For the fiscal year ended June 30, 2021 Gross Revenue Available for Debt Service: Charges for services: Water charges Wastewater charges Sanitation Penalties Recycle Other Golf course Sales tax pledged and transferred Total Gross Revenues Available Operating Expenses: Utility billing Administration Water Wastewater treatment plant and collection Refuse Golf course operations Total Operating Expenses Net Revenues Available for Debt Service Total Debt Service Requirements Computed Coverage Coverage Requirement $ 26,026,766 $ (625,812) $ 25,400,954 $ 8,004,858 317% 125% Note 1: The above gross revenue and operating expenses only include the activities of the Authorities related to water, wastewater, refuse services, and golf course operations (golf excluded on OWRB note issue coverage - see Note 3 below), excluding depreciation and bad debt expense. Note 2: The coverage requirements on the OWRB notes are calculated using maximum annual debt service on these notes and any subordinate debt. Note 3: Golf course revenues of the Owasso Public Golf Authority have been included as ''Gross Revenue Available'' for Debt Service in the 2002A, 200913, 2009C, 2011, 2013 SRF OWRB and 2019 Loan issues S - DEBT CAPACITY Page 16 2002A, 2009 B, 2009 C, 2011 2013 SRF OWRB and 2019C OPWA Golf course Loan Issues $ 7,632,976 $ - $ 7,632,976 5,775,417 5,775,417 2,576,673 2,576,673 209,299 209,299 32,749 32,749 45,618 45,618 801,395 801,395 19,397,702 19,397,702 35,670,434 801,395 36,471,829 472,149 472,149 1,207,472 1,207,472 4,278,318 4,278,318 2,204,167 2,204,167 1,481,562 1,481,562 1,427,207 1,427,207 9,643,668 1,427,207 11,070,875 $ 26,026,766 $ (625,812) $ 25,400,954 $ 8,004,858 317% 125% Note 1: The above gross revenue and operating expenses only include the activities of the Authorities related to water, wastewater, refuse services, and golf course operations (golf excluded on OWRB note issue coverage - see Note 3 below), excluding depreciation and bad debt expense. Note 2: The coverage requirements on the OWRB notes are calculated using maximum annual debt service on these notes and any subordinate debt. Note 3: Golf course revenues of the Owasso Public Golf Authority have been included as ''Gross Revenue Available'' for Debt Service in the 2002A, 200913, 2009C, 2011, 2013 SRF OWRB and 2019 Loan issues S - DEBT CAPACITY Page 16 CITY OF OWASSO, OKLAHOMA PLEDGED REVENUE BOND COVERAGE Last Ten Years Net OPWA Revenues Debt Service Requirements Gross Direct Available for Total Debt YEAR Revenue Expenses Debt Service Service Coverage 2021 $ 36,471,829 $ 11,070,875 $ 25,400,954 $ 8,004,858 317.32% 2020 32,427,535 11,261,421 21,166,114 7,997,358 264.66% 2019 31,315,966 10,245,678 21,070,288 1,525,658 1381.06% 2018 30,612,151 10,315,965 20,296,186 2,310,011 878.62% 2017 29,388,217 9,743,869 19,644,348 2,967,131 662.07% 2016 28,550,722 9,789,946 18,760,776 3,948,560 475.13% 2015 26,839,010 8,216,984 18,622,026 3,778,906 492.79% 2014 25,773,170 8,132,642 17,640,528 5,757,634 306.39% 2013 24,098,802 7,993,489 16,105,313 4,738,783 339.86% 2012 23,022,640 8,104,550 14,918,090 4,606,148 323.87% Source: Respective Years' Financial Statements Note: No General Fund debt was outstanding during the past 10 years. S - DEBT CAPACITY Page 17 CITY OF OWASSO, OKLAHOMA DEMOGRAPHIC AND ECONOMIC INFORMATION CHANGE IN POPULATION LAST TEN YEARS JUNE 30, 2021 * Source: US Census Bureau ** Amount adjusted from prior year due to new data * ** Source: City of Owasso Economic Development Department S - DEMOGRAPHIC AND ECONOMIC INFORMATION Page 18 Median Fiscal Year Population * Yearly Change Median Age * ** Household Income * ** 2021 38,240 2.68% Not Available Not Available 2020 37,241 0.93% 33.50 $ 72,443 2019 36,897 ** 0.78% 32.90 72,930 2018 36,610 ** 0.90% 35.90 69,886 2017 36,283 ** 0.57% 33.50 67,340 2016 36,079 ** 3.83% 34.50 65,550 2015 34,747 ** 2.31% 35.10 65,881 ** 2014 33,962 ** 4.10% 34.30 65,550 2013 32,624 ** 3.29% 34.40 64,711 2012 31,585 ** 1.44% 33.02 59,542 * Source: US Census Bureau ** Amount adjusted from prior year due to new data * ** Source: City of Owasso Economic Development Department S - DEMOGRAPHIC AND ECONOMIC INFORMATION Page 18 CITY OF OWASSO, OKLAHOMA PRINCIPAL EMPLOYERS JUNE 30, 2021 S — DEMOGRAPHIC AND ECONOMIC INFORMATION Page 19 2021 2012 Percentage of Total Employer Type of Business Employees Rank Employment Employees Rank Employment Saint Francis Health System Health Care 10,528 1 1.06% 5,500 4 0.55% Ascension St. John Health Care 6,650 2 0.67% 6,000 3 0.60% Hillcrest Healthcare System Health Care 6,310 3 0.63% 2,500 8 0.25% Tulsa Public Schools Public Schools 5,931 4 0.60% 6,500 2 0.65% American Airlines Aircraft Maintenance 5,400 5 0.54% 7,000 1 0.70% City of Tulsa City Government 3,628 6 0.36% 4,000 5 0.40% Macy's Fulfillment Center Consumer Fulfillment Center 3,200 7 0.32% Alliance Holdings Group, LP Coal Mining 2,438 8 0.24% Broken Arrow Public Schools Public Schools 2,379 9 0.24% 2,500 11 0.25% Bank of Oklahoma Banking 2,288 10 0.23% 2,500 10 0.25% Tulsa Community College Community College 2,230 11 0.22% 2,500 14 0.25% Cherokee Nation Businesses Business Services 1,906 12 0.19% Union Public School District Public Schools 1,900 13 0.19% 2,500 16 0.25% Spirit Aerosysfems Inc 3,000 6 0.30% Caprock Pipeline Company N/A 3,000 7 0.30% Baker Hughes Oilfield Operations 2,500 9 0.25% 54,788 5.50% 50,000 5.02% Source: Tulsa Regional Chamber Economic Profile S — DEMOGRAPHIC AND ECONOMIC INFORMATION Page 19 CITY OF OWASSO, OKLAHOMA Bank Deposits LAST TEN YEARS Owasso Bank Year Deposits Growth 2020 1,044,800,000 25.23% 2019 834,300,000 3.05% 2018 809,600,000 12.41 2017 720,200,000 6.97% 2016 673,300,000 1.520 2015 663,200,000 7.30% 2014 618,100,000 2.18% 2013 604,900,000 4.01 2012 581,600,000 12.840 2011 515,400,000 0.25% Source: RegionTrack 2021 Owasso Economic Outlook Information based on a calendar year -2021 not yet available S - DEMOGRAPHIC AND ECONOMIC INFORMATION Page 20 CITY OF OWASSO, OKLAHOMA BUILDING PERMIT HISTORY LAST TEN YEARS JUNE 30, 2021 Year Commercial Commercial Residential Residential Multi - Family Multi - Family Permits Value Permits Value Permits* Value* 2021 12 $ 24,545,580 203 $ 27,132,933 80 $ 6,039,000 2020 8 29,196,000 110 19,696,734 - 2019 12 24,435,600 74 8,772,766 73 6,283,600 2018 11 57,518,741 141 19,196,270 18 1,289,590 2017 15 20,660,955 182 25,942,995 23 1,007,673 2016 9 6,458,000 243 49,324,936 - 2015 18 44,663,400 238 30,724,439 2014 11 10,287,590 245 33,435,260 2013 9 11,945,140 222 30,306,105 2012 9 9,301,000 206 16,158,096 * New category in 2017, prior years are included in Residential totals Source: City of Owasso Community Development Information is based on a fiscal year. S - DEMOGRAPHIC AND ECONOMIC INFORMATION Page 21 CITY OF OWASSO, OKLAHOMA PUBLIC SCHOOL INFORMATION LAST TEN YEARS JUNE 30, 2021 Source: Annual Statistical Reports submitted by the Owasso Public School district to the Oklahoma State Department of Education * 1st year A -F Adoption **Oklahoma State Department of Education implemented a new grading system in 2018 *2019 -20 and 2020 -21 School Report Cards not released due to a program suspension through the US Department of Education because of the COVID -19 Pandemic S - DEMOGRAPHIC AND ECONOMIC INFORMATION Page 22 Est. Enrollment Age Number of Est. Percent of High Year School Report Card 4 -17 Elementary Schools School Graduates 2021 9,035 10 Not Available Not Available"* 2020 9,782 9 94.0% Not Available"* 2019 9,629 9 92.0% B 2018 9,730 8 98.5% B" 2017 9,737 8 99.0% B+ 2016 9,678 8 96.0% B+ 2015 9,651 8 98.0% B 2014 9,578 8 98.0% B 2013 9,445 8 95.0% A 2012 9,324 8 93.0% B* Source: Annual Statistical Reports submitted by the Owasso Public School district to the Oklahoma State Department of Education * 1st year A -F Adoption **Oklahoma State Department of Education implemented a new grading system in 2018 *2019 -20 and 2020 -21 School Report Cards not released due to a program suspension through the US Department of Education because of the COVID -19 Pandemic S - DEMOGRAPHIC AND ECONOMIC INFORMATION Page 22 CITY OF OWASSO, OKLAHOMA UNEMPLOYMENT RATE LAST TEN YEARS JUNE 30, 2021 Unemployment Unemployment Unemployment Year Rate - Owasso Rate - Oklahoma Rate - United States 2021 3.50% 4.30% 5.80% 2020 5.60% 6.10% 6.90% 2019 2.90% 3.20% 3.60% 2018 2.70% 3.50% 3.70% 2017 3.90% 4.50% 4.20% 2016 3.90% 5.10% 4.90% 2015 3.20% 4.30% 5.10% 2014 3.30% 4.30% 6.20% 2013 4.00% 5.20% 7.30% 2012 4.20% 5.20% 8.10% Source: Bureau of Labor Statistics and Owasso Economic Outlook S — DEMOGRAPHIC AND ECONOMIC INFORMATION Page 23 CITY OF OWASSO, OKLAHOMA SELECTED OPERATING INDICATORS BY FUNCTION /PROGRAM LAST EIGHT YEARS function /Program 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Public Safely 8 Proleclion 3 4 Police 54 55 67 1. Number of Police Officers 48 48 49 55 56 57 59 60 2. Number of Police Officers per 1000 residents 154 152 1.50 1.62 1.61 155 1.57 1.60 1.61 1.57 3. Percentlncrease (decrease) In number of reactive calls New Mecsure 3.115 1215 8.265 -0.035 4.555 0305 3.455 -13D85 Not Available' 4. Percent lncrease (decrease) In number of proactive calls' New Mecsure -9.415 75.715 27.615 63.185 26505 39.665 26315 - 10345 Not Available' 5. Percent lncrease (decrease) In number of personal crimes' New Mecsure -1.495 - 12.125 -29315 60.985 19.705 5D65 0.005 -12505 Not Available' 6. Percent lncrease (decrease) In number of total crimes' New Mecsure 3.405 - 30.485 -28525 - 95.265 6.645 14355 0.025 -13265 Not Available' Reactive Call • when a citizen calls the Police Depadmenl and requests an Officer's assistance Proactive Call • when an Officer inliales an aclivily on (heir own. for example, Traffic slops and security checks in neighborhoods or businesses Information gathered based on a calendar year function /Program fire 1. Number of fire Statons 2. Number of firefighters 3. Percent increase (decrease) in number of ambulance calls' 4. Percent increase (decrease) in number of fire calls' Information gathered based on a calendar year 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 9.245 3.115 -2.715 5.945 5.655 0.865 2345 8.765 -0.195 Not Available' -18205 -6.745 - 18.595 3.595 9325 9.955 6285 7.435 5.165 Not Available' S- OPERATING INFORMATION Page 24 function /Program Owasso Historical Museum* 1. Regular Attendance 2. Gathering on Main Attendance 3. Annual Memorial Day flower Sala Attendance Owasso Community Center 1. Community Partners 2. Senior Attendance Owasso Strong Neighborhood Initiative 1. Neighborhood Grant Investment Number of Grants Grant Amount Neighborhood funding Total Investment in Owasso Neighborhoods 2. Volunteer Program Volume/ # of People City Volunteer Program Owasso Cares Program Keep Owasso Clean Program Total Volunteer Program Volume 3. Volunteer Program Hours City Volunteer Program Owasso Cares Program Keep Owasso Clean Program Total Volunteer Program Hours 4. Volunteer Program Value City Volunteer Program Owasso Cares Program Keep Owasso Clean Program Total Volunteer Program Value CITY OF OWASSO, OKLAHOMA SELECTED OPERATING INDICATORS BY FUNCTION /PROGRAM LAST EIGHT YEARS 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 794 1,394 1,693 1361 875 344 391 435 Not Available New Measure 598 940 863 566 312 440 569 234 216 259 109 11 11 13 15 16 23 New Measure 1,986 16,470 18582 18,990 20,283 22331 25,398 16,531 Not Available 7 5 9 7 10 9 9 15 10 13 $ 3,459.95 $ 3,950.00 $ 5,31936 $ 5,707.54 $ 8,218.50 $ 7,840.00 $ 7,150.00 $ 16,013.00 $ 15,44751 $ 26,076.61 6345.26 6,028.37 13,302.93 15356.46 24,586.65 20,463.00 26333.69 34,926.02 49,424.62 86539.44 $ 9,805.21 $ 9,978.37 $ 18,622.79 $ 21,064.00 $ 32,805.15 $ 28,303.00 $ 33,483.69 $ 50,939.02 $ 64,872.13 $ 112,616.05 466 227 373 285 331 196 137 167 55 65 207 382 449 509 385 223 261 336 0 112 218 301 287 281 143 50 184 673 609 822 1,012 1,017 706 679 646 105 361 1547.00 836.75 2,01650 511.10 839.30 362.00 279.00 424.70 89.00 146.00 621.00 1,140.00 1,348.00 1,620.00 1,348.00 719.00 850.00 1,101.50 382.00 New Measure 445.50 562.00 514.00 488.00 286.00 93.00 315.00 2,168.00 1,976.75 3,36450 2576.60 2,749.30 1,595.00 1,611.00 181220 182.00 843.00 $ 26376.35 $ 15,295.79 $ 36,861.62 $ 10,671.11 $ 18,002.99 $ 7,992.96 $ 6,169.15 $ 9,74631 $ 2,04255 $ 3,466.04 10588.05 20,839.20 26,641.44 33,825.60 28,914.60 15,875.52 18,768.00 25,279.43 9,068.68 8,654.16 12,054.90 11,338.08 10,764.00 6563.70 2,13435 7,478.10 $ 36,964.40 $ 36,134.99 $ 63,503.06 $ 53,152.13 $ 58,972.49 $ 35,206.56 $ 35,701.15 $ 41590.00 $ 4,176.90 $ 20,01232 S- OPERATING INFORMATION Page 25 CITY OF OWASSO, OKLAHOMA SELECTED OPERATING INDICATORS BY FUNCTION /PROGRAM LAST EIGHT YEARS Function /Program 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Police Volunteers & Reserves 1. Volonteer Program Volome/ # of People Police Volonfeer Program 252 288 158 98 54 57 27 65 9 Police R.-- Program 368 279 307 134 129 144 118 62 83 88 Total Volonfeer Program Volome 620 567 465 232 183 201 145 127 92 88 2. Volonteer Program Hoorn Pollee Volonteer Program 86750 1,01650 620.25 384.60 352.70 18830 100.90 372.40 28.30 Police R.-- Program 1,811.00 1,357.00 1,450]5 73320 738 b0 83120 579.90 185]0 378.70 356.98 Total Volonteer Program Hoorn 2,67850 2,37350 2,071.00 1,117b0 1,09150 1,01950 680.80 558.10 407.00 356.98 3. Volonteer Program Val Pollee Volonteer Program $ 14,790b8 $ 18581.62 $ 11,338.17 $ 8,030.45 $ 7565.42 $ 4,157.66 $ 2,227.87 $ 854658 $ 649.49 $ - Police R.-- Program 30,87755 24,805.96 26,519]1 15 ,309 22 15,84726 18,35290 12,804.19 4,261 b2 8,691.17 8,473.99 Total Volonteer Program Valoe $ 45,668.43 $ 43,38758 $ 37,857.88 $ 23,339.67 $ 23,412.68 $ 2251056 $15,03206 $ 12,808.40 $ 9,340.66 $ 8,473.99 Community Center 1. Volonteer Program Volome/ # of People Seniors 431 370 459 430 369 384 363 284 183 116 Office Volonteers 12 12 16 13 1 Total Volonteer Program Volome 443 382 475 443 370 384 363 284 183 116 2. Volonteer Program Hoorn Seniors 5,909 6,607 6,944 6,771 5,308 6,672 5]07 5,060 2,669 2,281 Office Volonteers 1548 1563 979 356 49 Total Volonteer Program Hoorn 7,456 8,170 7,923 7,127 5,357 6,672 5]07 5,060 2,669 2,281 3. Volonteer Program Val'. Seniors 100,740 120,362 126,941 141,374 113,863 147,297 126,011 116,127 61,254 54,151 Office Volonteers 28.293 28563 17b87 7.433 1.051 Total Volonteer Program Valoe 129,033 148,924 144,828 148,807 114,914 147,297 126,011 116,127 61,254 54,151 Other Volunteer Programs 1. Volonteer Program Hoorn Emergency Operations Volonteers 87 5 A-d Shelter Volonteers 12 Total Volonteer Program Hoorn 99 5 2. Volonteer Program Valoe * ** Emergency Operations Volonteers 1,996.65 114.75 A-d Shelter Volonteers 275.40 Total Volonteer Program Valoe 2,272.05 114.75 Total Value of all Volunteer Programs 1. Volonteer Program Vol-/ # of People 1,736 1558 1 f76 1,687 1570 1,291 1,187 1,057 380 565 2. Volonteer Program Hoorn 12,303 12520 13,358 10,821 9,198 9,287 8,005 7529 3,263 3,481 3. Volonteer Program Valoe*** $ 211,665.63 $ 228,447.00 $ 246,188.81 $ 225,298.97 $ 197,298b3 $ 205,014.12 1 76f74 1 72f79 74,886 82,638 Information gathered based on a calendar year Value calculated based on Independent Sedor Website (or Oklahoma: hHps: / /www.independentsedor.wg/ resource /the - valued(- volunteer -time/ S- OPERATING INFORMATION Page 26 DEPARTMENT Municipal Court Managerial Finance Human Resources General Government Information Technology Support Services CITY OF OWASSO, OKLAHOMA CITY EMPLOYEES BY FUNCTION LAST TEN YEARS 2012 2013 2014 2015 2016 3 7 8 61/2 42/3 41/6 41/2 41/3 41/3 51/3 41/2 41/2 41/2 41/2 2017 2018 2019 2020 2021 61/4 61/4 41/2 4 1/2 41/2 41/2 41/2 Total General Government 30 30 311/2 31 311/2 301/2 323/4 Total Community Development Total City Garage 2 1/2 21/2 21/2 21/2 31/2 31/2 31/2 31/2 31/2 31/2 Engineering 61/2 71/2 Cemetery 1 1/2 Streets 51/3 51/3 61/3 61/3 71/3 91/3 101/3 11 1/3 121/3 12 1/3 Stormwater" 91/3 81/3 91/3 91/3 81/3 91/3 9 1/3 101/3 11 1/3 11 1/3 Total Public Works 202/3 192/3 221/6 221/6 241/6 271/6 281/6 301/6 322/3 322/3 Police Services 50 52 51 52 61 61 1/2 64 661/2 661/2 Police Communications Animal Control 2 21/2 Fire Services 54 55 67 671/2 ambulance Services 1/2 Emergency Preparedness Total Public Safety 1211/2 1231/2 123 134 1341/2 149 153 Total Recreation and Culture 101/2 111/2 12 13 15 161/2 17 Total Economic Development 21/2 31/4 Total Water 161/3 155/6 161/3 161/3 181/3 185/6 Total Wastewater 122/3 151/6 Total Sanitation 81/3 91/3 Total Recycle Center 11/2 21/2 Total Golf Course 15 151/2 161/2 17 171/2 TOTAL EMPLOYEES 247 249 254 256 274 279 1/2 2831/2 301 1/2 312 1/2 3131/2 *This includes both the General Fund & St-ater Fund Employees Source: Prior years budget books Fractions indicate split funding or pad -lime employees S- OPERATING INFORMATION Page 27 CITY OF OWASSO UTILITY AUTHORITY WATER AND SEWER RATES (Last Ten Years) (Residential - Inside City Limits) Source: City Ordinance S- OPERATING INFORMATION Page 28 Water Sewer monthly Base Kate per 1,000 Monthly Base Kate per 1,000 Fiscal Year Rate Gallons Rate Gallons 2021 $ 12.82 $ 7.66 $ 9.53 $ 4.15 2020 12.60 7.22 9.08 3.95 2019 12.38 6.78 8.65 3.76 2018 12.16 6.34 8.24 3.58 2017 11.94 5.90 7.84 3.41 2016 11.94 5.46 7.47 3.25 2015 11.50 5.02 6.97 2.95 2014 11.29 4.81 6.97 2.95 2013 11.01 4.44 6.97 2.95 2012 10.84 4.27 6.97 2.55 Source: City Ordinance S- OPERATING INFORMATION Page 28 CITY OF OWASSO UTILITY AUTHORITY WATER REVENUE BY CUSTOMER TYPE (Last Ten Years) 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Residential $ 3,524,593 $ 3,521,324 $ 3,534,658 $ 3,377,415 $ 3,706,866 $ 3,727,114 $ 3,710,379 $ 3,597,217 $ 3,922,391 $ 4,550,780 Commercial 1,117,426 1,193,618 1,270,976 1,323,475 1,472,681 1,938,004 2,092,634 2,020,572 2,141,421 2,498,273 Other 285,396 347,516 284,487 247,846 336,234 314,529 445,520 488,504 384,308 583,923 Total $ 4,927,414 $ 5,062,458 $ 5,090,121 $ 4,948,736 $ 5,515,781 $ 5,979,647 $ 6,248,534 $ 6,106,293 $ 6,448,120 $ 7,632,976 Source: City of Owasso Utility Billing Department S- OPERATING INFORMATION Page 29 CITY OF OWASSO, OKLAHOMA CAPITAL ASSET CONDITION (LAST TEN YEARS) Ratio of Accumulated Depreciation to Total Ratio of Accumulated Depreciation to Capital Assets Depreciable lliiilll ��illll 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2012 2013 2014 2015 2016 2017 2018 2019 2020 20 1 S -OPERATING INFORMATION Page 30 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Total Capital Asset Cost $218,739,916 $227,627,680 $250,183,492 $257,543,293 $274,467,491 $288,836,198 $312,998,531 $340,831,713 $365,430,180 $385,372,360 Non - depreciable Land & CIP 26,762,000 18,108,223 23,170,857 21,452,471 31,418,724 27,339,598 41,107,740 59,330,743 48,502,464 61,962,655 Total Depreciable Capital Assets $191,977,916 $209,519,457 $227,012,635 $236,090,822 $243,048,767 $261,496,600 $271,890,791 $281,500,970 $316,927,716 $323,409,705 Accumulated Depreciation $ 69,743,475 $ 74,877,280 $ 84,132,412 $ 91,998,891 $ 99,731,554 $ 108,013,523 $ 117,329,739 $ 126,024,353 $ 136,400,388 $ 147,888,499 Ratio of Accumulated Depreciation to Total Capital Assets 32% 33% 34% 36% 36% 37% 37% 37% 37% 38% Ratio of Accumulated Depreciation to Depreciable Capital Assets 36% 36% 37% 39% 41% 41% 43% 45% 43% 46% Ratio of Accumulated Depreciation to Total Ratio of Accumulated Depreciation to Capital Assets Depreciable lliiilll ��illll 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2012 2013 2014 2015 2016 2017 2018 2019 2020 20 1 S -OPERATING INFORMATION Page 30 CITY OF OWASSO, OKLAHOMA APPENDIX OF ABBREVIATIONS (Occasionally used throughout this report) City ... City of Owasso, Oklahoma ALN ... Assistance Listing Number CDBG ... Community Development Block Grant CWSRF ... Clean Water State Revolving Fund EMSA ... Emergency Medical Services Authority FPRS ...Oklahoma Firefighter's Pension and Retirement System GAAP ... Generally Accepted Accounting Principles GASB ... Governmental Accounting Standards Board GFOA ... The Government Finance Officers Association of the U.S. and Canada GO ... General Obligation (bonds) ICMA -RC ...457 Deferred Compensation Plan IRC ... Internal Revenue Code MSA ... Metropolitan Statistical Area (of Tulsa) OEDA ...Owasso Economic Development Authority OKMRF ...Oklahoma Municipal Retirement Fund OPEB ...Other Post Employment Benefits OPGA ... Owasso Public Golf Authority OPPRS ••• Oklahoma Police Pension and Retirement System OPWA ••• Owasso Public Works Authority OSNI ••• Owasso Strong Neighborhood Initiative OW RB ... Oklahoma Water Resources Board RAN ... Revenue Anticipation Note SRF ... State Revolving Fund UAAL ... Unfunded Actuarial Accrued Liability S —OPERATING INFORMATION Page 31 Page intentionally left blank Annual Comprehensive Financial Report City of Owasso, Oklahoma Year Ended June 30, 2021 CITY OF OWASSO, OKLAHOMA SINGLE AUDIT REPORTS AND SUPPLEMENTARY SCHEDULES YEAR ENDED JUNE 30, 2021 CITY OF OWASSO, OKLAHOMA SINGLE AUDIT REPORTS AND SUPPLEMENTARY SCHEDULES Year Ended June 30, 2021 TABLE OF CONTENTS The City of Owasso, Oklahoma financial statements and related notes for the year ended June 30, 2021 were audited by BT &Co., P.A. and issued under a separate cover. Independent Auditors' 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 -2 Independent Auditors' Report on Compliance for the Major Federal Program; Report on Internal Control Over Compliance; and Report on the Schedule of Expenditures of Federal Awards Required by the Uniform Guidance 3 - 5 Schedule of Expenditures of Federal Awards 6 Notes to Schedule of Expenditures of Federal Awards Schedule of Findings and Questioned Costs 8 - 9 INDEPENDENT AUDITORS' 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 The Honorable Mayor and Members of the City Council City of Owasso, 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 discretely presented component unit, each major fund, and the aggregate remaining fund information of the City of Owasso, Oklahoma (the City), as of and for the year ended June 30, 2021, and the related notes to the financial statements, which collectively comprise the City's basic financial statements, and have issued our report thereon dated December 22, 2021. 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) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, we do not express an opinion on the effectiveness of the City's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. Compliance and Other Matters As part of obtaining reasonable assurance about whether the City's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. December 22, 2021 Topeka, Kansas -2- INDEPENDENT AUDITORS' REPORT ON COMPLIANCE FOR THE MAJOR FEDERAL PROGRAM; REPORT ON INTERNAL CONTROL OVER COMPLIANCE; AND REPORT ON SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS REQUIRED BY THE UNIFORM GUIDANCE The Honorable Mayor and Members of the City Council City of Owasso, Oklahoma: Report on Compliance for the Major Federal Program We have audited the City of Owasso, Oklahoma's (the City's) compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on the City's major federal program for the year ended June 30, 2021. The City's major federal program is identified in the summary of auditors' 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. Auditors' Responsibility Our responsibility is to express an opinion on compliance for the City's major federal program 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 the major federal program. However, our audit does not provide a legal determination of the City's compliance. Opinion on the 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 its major federal program for the year ended June 30, 2021. 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 and material effect on the major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for the 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. -4- 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 discretely presented component unit, each major fund, and the aggregate remaining fund information of the City as of and for the year ended June 30, 2021, and the related notes to the financial statements, which collectively comprise the City's basic financial statements. We issued our report thereon dated December 22, 2021, 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 expenditure of federal awards is fairly stated in all material respects in relation to the basic financial statements as a whole. December 22, 2021 Topeka, Kansas CITY OF OWASSO, OKLAHOMA SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS Year Ended June 30, 2021 Federal Grantor /Pass- Through Grantor /Program Title U.S. Department of Housing and Urban Development: CDBG - Entitlement Grants Cluster: Passed through Oklahoma Department of Commerce: Community Development Block Grant - FYI 7 Community Development Block Grant - FYI Community Development Block Grant - FYI 9 Total CDBG - Entitlement Grants Cluster Total U.S. Department of Housing and Urban Development U.S. Department of Justice: COVID -19 - Coronavirus Emergency Supplemental Funding Bulletproof Vest Partnership Grant FY2019 Bulletproof Vest Partnership Grant FY2020 Public Safety Partnership and Community Policing Grants Total U.S. Department of Justice U.S. Department of Transportation: Passed through the Oklahoma Highway Safety Office: Highway Safety Cluster: State and Community Highway Safety- FY20 (OT) State and Community Highway Safety- FY21 (OT) Total Highway Safety Cluster Total U.S. Department of Transportation U.S. Department of the Treasury: Passed through the State of Oklahoma: Treasury Asset Forfeiture Program COVID -19 - Coronavirus Relief Fund Passed through Tulsa County, Oklahoma: COVID -19 - Coronavirus Relief Fund Total U.S. Department of the Treasury U.S. Department of Homeland Security: Fire Department - SAFER Grant Total U.S. Department of Homeland Security Total expenditures of federal awards Assistance Grant Listing Number Number CDBG 13- 17 -UC -40 -0001 14.218 CDBG 13- 18 -UC -40 -0001 14.218 CDBG 13- 19 -UC -40 -0001 14.218 Expenditures $ 4,356 138,377 133,117 275,850 275,850 DOJ 2020- VX -BX -00 16.034 50,161 FY2019 BPV 16.607 1,495 FY2020 BPV 16.607 3,982 2020UMWX0161 16.710 213,930 269,568 AL- 20- 03 -07 -15 20.600 25,687 PT- 21- 03 -22 -16 20.600 49,424 75,111 75,111 None 21.016 50,799 None 21.019 2,779,088 None 21.019 36,892 2,866,779 EMW- 2017 -FH -00156 97.083 542,789 See accompanying notes to schedule of expenditures of federal awards. 542,789 $ 4,030,097 CITY OF OWASSO, OKLAHOMA NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS June 30, 2021 1 - Basis of Presentation The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the City of Owasso, Oklahoma (the City) under programs of the federal government for the year ended June 30, 2021. The City's reporting entity is defined in Note 1 to the City's basic financial statements. The information in the Schedule 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 Schedule presents only a selected portion of the operations of the City, it is not intended to and does not present the net position, changes in net position, or, where applicable, cash flows of the City. 2 - Summary of Significant Accounting Policies Expenditures reported on the Schedule are reported on the modified accrual basis of accounting, which is described in Note 1 to the City's basic financial statements. The expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The City has not elected to use the 10- percent de minimis indirect cost rate as allowed under the Uniform Guidance. -7- CITY OF OWASSO, OKLAHOMA SCHEDULE OF FINDINGS AND QUESTIONED COSTS Year Ended June 30, 2021 Section I - Summary of Independent Auditors' Results Financial Statements Type of auditors' report issued Unmodified Internal control over financial reporting: Material weaknesses identified None Significant deficiencies identified that are not considered to be material weaknesses None reported Noncompliance material to financial statements noted None Federal Awards Type of auditors' report issued on compliance for major programs Unmodified Internal control over major programs: Material weaknesses identified None Significant deficiencies identified that are not considered to be material weaknesses None reported Any audit findings disclosed that are required to be reported in accordance with Section 2 CFR 200.516(a) None Identification of major programs: Assistance Listing_ Number 21.019 Dollar threshold used to distinguish between type A and type B programs Auditee qualified as a low -risk auditee B2 Name of Federal Program COVID -19 - Coronavirus Relief Fund $ 750,000 No CITY OF OWASSO, OKLAHOMA SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) Section II - Financial Statement Findings None. Section III - Federal Award Findings and Questioned Costs None. Page intentionally left blank