HomeMy WebLinkAbout2023.01.17_City Council AgendaPUBLIC NOTICE OF THE MEETING OF THE
OWASSO CITY COUNCIL
Council Chambers Old Central Building 109 North Birch, Owasso, OK
Tuesday, January 17, 2023 - 6:30 PM
NOTE: APPROPRIATE ACTION may include, but is not limited to: acknowledging, affirming, amending, approving, authorizing,
awarding, denying, postponing, or tabling.
AGENDA RECEIVED
1. Call to Order - Chair Kelly Lewis JAN 12 2023
2. Invocation - Senior Pastor Dr. Chris Wall of First Baptist Church of Owasso City Clerk's Office
3. Flag Salute
4. Roll Call
5. Presentation of the Employee of the Quarter - Warren Lehr
6. Consideration and appropriate action relating to 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 3, 2023, and January 10, 2023, Regular Meeting
B. Approve claims
C. Re- approve the Real Property Lease between 815 W Kenosha LLC, and the City of Owasso,
dated November 15, 2022, and authorize execution of all necessary documents
7. Consideration and appropriate action relating to items removed from the Consent Agenda
8. Consideration and appropriate action relating to the nomination of Brian Cook to serve on the Owasso
Planning Commission to begin May 2, 2023, until such term expires on June 30, 2025
Mayor Kelly Lewis
9. Consideration and appropriate action relating to Ordinance 1203, approving rezoning from Residential
Single - Family (RS -3) to Public Facility (PF) of approximately 63.667 acres, located south of East 116th
Street North and east of North 97th East Avenue, as referenced in application OZ 22 -10
Alexa Beemer
Staff recommends adoption of Ordinance 1203.
10. Consideration and appropriate action relating to a Specific Use Permit (SUP) for approximately 0.8136
acres located south of East 96th Street North and east of North 129th East Avenue for an automotive repair
and maintenance facility (Take 5 Oil Change) in a Commercial Shopping (CS) district, as referenced in
application SUP 22 -03
Alexa Beemer
Staff recommends approval of Specific Use Permit 22 -03.
11. Consideration and appropriate action relating to Resolution 2023 -01, accepting the notice of retirement
from Warren Lehr, City Manager, to be effective on or about March 2, 2024, and resolving to extend an
offer on or before December 5, 2023, to Chris Garrett, Assistant City Manager, to fill the position of City
Manager
Julie Lombardi
12. Report from City Manager
13. Report from City Attorney
14. Report from City Councilors
Owasso City Council
January 17, 2023
Page 2
15. Official Notices (documents for acknowledgment of receipt or information only, no discussion or action
will be taken)
• Payroll Payment Report - Pay Period Ending Date December 31, 2022
• Health Care Self- Insurance Claims - dated as of January 12, 2023
• Monthly Budget Status Report - December 2022
• Letter dated January 10, 2023 from the Owasso Audit Committee; the FY 2021 -2022 Annual
Comprehensive Financial Report; and, the City's annual financial audit for fiscal year ending
June 30, 2022
16. New Business (New Business is any item of business which could not have been foreseen at the time of
posting of the agenda)
17. Adjournment
Notice of Public Meeting filed in the office of the City Clerk on Friday, December 9, 2022, and the Agenda
posted at City Hall, 200 South Main Street, at 5:00 prp aN Thursday, Janpary 12, 2023.
The City of Owasso encourages citizen participation. To request
least 48 hours prior to the scheduled meeting by phone 918 - 376 -I:
M. Stevens,'Gfity Clerk
:commoaafion clue to a disability, contact the City Clerk at
by email to istevens@citvofowasso.com
OWASSO CITY COUNCIL
MINUTES OF REGULAR MEETING
TUESDAY, JANUARY 3, 2023
The Owasso City Council met in regular session on Tuesday, January 3, 2023, in the Council Chambers at
Old Central, 109 North Birch, Owasso, Oklahoma per the Notice of Public Meeting filed Friday, December
9, 2022; and the Agenda filed in the office of the City Clerk and posted at City Hall, 200 South Main Street,
at 3:00 pm on Thursday, December 29, 2022.
1. Call to Order - Vice Mayor Alvin Fruga called the meeting to order at 6:30pm.
2. Invocation - The Invocation was offered by Allen Richard, Associate Pastor of Freedom Church.
3. Flag Salute - Councilor Bill Bush led the flag salute.
4. Roll Call - A quorum was declared present.
Present Absent
Vice Mayor- Alvin Fruga Mayor- Kelly Lewis
Councilor- Doug Bonebrake
Councilor- Bill Bush
Councilor- Lyndell Dunn
Staff: City Manager - Warren Lehr / City Attorney - Julie Lombardi
5. Presentation of Character Trait of Discipline
Juliann M. Stevens, City Clerk, presented the character trait for the month of January.
6. Consideration and appropriate action relating to 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 - December 20, 2022, Regular Meeting
B. Approve claims
C. Approve early retirement benefits for Howard Burton
D. Accept a donation in the amount of $2,250.00 from Classic Chevrolet and approve a
budget amendment in the Half -Penny Sales Tax Fund, increasing the estimate of revenues
and the appropriation for expenditures in Police Services by $2,250.00
E. Accept the Funtastic Island Renovation and Splash Pad Project and authorize final payment
to Magnum Construction Inc., of Broken Arrow, Oklahoma, in the amount of $55,277.00
Mr. Bush moved, seconded by Mr. Dunn to approve the Consent Agenda as presented, with claims
totaling $349,857.61.
YEA: Bonebrake, Bush, Dunn, Fruga
NAY: None
Motion carried: 4 -0
7. Consideration and appropriate action relating to items removed from the Consent Agenda - None
8. Report from City Manager
Warren Lehr introduced Roger Stevens to provide the monthly Public Works project status report and
discussion was held. Mr. Lehr reported on the Live Greenery pick up schedule.
9. Report from City Attorney - None
10. Report from City Councilors - None
11. Official Notices - The Vice Mayor acknowledged receipt of the following:
• Payroll Payment Report - Pay Period Ending Date December 17, 2022
• Health Care Self- Insurance Claims -dated as of December 29, 2022
• Oklahoma Department of Environmental Quality Permit No. SL000072220881 to construct
sanitary sewer to serve Vision Source, Facility No. 2 -21310
12. New Business - None
13. Adjournment
Mr. Bonebrake moved, seconded by Mr. Bush to adjourn the meeting.
YEA: Bonebrake, Bush, Dunn, Fruga
NAY: None
Motion carried: 4 -0 and the meeting adjourned at 6:56 pm.
Alvin Fruga, Vice Mayor
Juliann M. Stevens, City Clerk
Owasso City Council
January 3, 2023
Page 2
OWASSO CITY COUNCIL, PUBLIC WORKS AUTHORITY, AND
PUBLIC GOLF AUTHORITY
MINUTES OF JOINT REGULAR MEETING
TUESDAY, January 10, 2023
The Owasso City Council, Owasso Public Works Authority (OPWA), and Owasso Public Golf Authority
(OPGA) met in a joint regular meeting on Tuesday, January 10, 2023, in the Council Chambers at Old
Central, 109 North Birch Street, Owasso, Oklahoma, per the Notice of Public Meeting filed Friday, December
9, 2022; and the Agenda filed in the office of the City Clerk and posted at City Hall, 200 South Main Street,
at 1:00 pm on Friday, January 6, 2023.
1. Call to Order - Mayor /Chair Kelly Lewis called the meeting to order at 6:00 pm. A quorum was declared
present.
Present
Mayor /Chair - Kelly Lewis Vice Mayor /Vice Chair - Alvin Fruga
Councilor /Trustee - Doug Bonebrake Councilor /Trustee - Bill Bush
Councilor /Trustee - Lyndell Dunn
Absent - None
Staff: City /Authority Manager- Warren Lehr; Assistant City /Authority Manager- Chris Garrett;
City /Authority Attorney - Julie Lombardi
2. Presentation and discussion relating to the Fiscal Year 2021 -2022 Audit and Annual Comprehensive
Financial Report
Carly Novozinsky, Stacy Hammond, C.P.A. and Emily Sheldon, C.P.A. of BT &Co., P.A., and Robert
Curfman, Audit Committee Chair, presented the item and discussion was held.
3. Discussion relating to Community Development Items
A. Request for rezoning - approximately 63.677 acres located south of East 116th Street North and
east of North 97th East Avenue from Residential Single - Family (RS -3) to Public Facilities (PF), as
referenced in application OZ 22 -10
B. Request for a Specific Use Permit (SUP) - approximately 0.8136 acres located south of East 96th
Street North and east of North 129th East Avenue for an automotive repair and maintenance
facility in a Commercial Shopping (CS) district, as referenced in application SUP 22 -03
Alexa Beemer presented both items and discussion was held. It was further explained item A and B
would be placed on the January 17, 2023, City Council agenda for consideration and action.
4. Discussion relating to City /Authority Manager items
A. Citizen appointment to the Owasso Planning Commission
B. Monthly sales tax report and revenue outlook
C. City Manager report
Warren Lehr and Mayor Lewis presented item A. Carly Novozinsky presented item B and discussion was
held. Mr. Lehr reported on the annual live greenery collection program.
5. City Councilor /Trustee comments and inquiries - None
6. Consideration and appropriate action relating to an executive session for the purpose of discussing
personnel matters of the City Manager, as provided for in Title 25, O.S. § 307(B)(1)
Julie Lombardi recommended to enter into executive session. Mr. Bonebrake moved, seconded by Mr.
Dunn to enter into executive session.
YEA: Bonebrake, Bush, Dunn Fruga, Kelly
NAY: None
Motion carried: 5 -0 and at 6:20 pm, the City Council along with Warren Lehr, and Julie Lombardi,
entered into executive session. At 7:01 pm, Mayor Lewis exited the executive session and returned at
7:04 pm. At 7:16 pm, the City Council returned to open session.
7. Adjournment - The meeting adjourned at 7:17 pm.
Kelly Lewis, Mayor /Chair
Juliann M. Stevens, City Clerk
Claims List - 01117/2023
Fund Vendor Name
Payable Description
Payment
Amount
01 GENERAL BLUE ENERGY FUELS LLC
CNG FUEL CHARGES DEC
$93.12
COX COMMUNICATIONS
PHONE USAGE
$10.62
ENTERPRISE FM TRUST
FLEET LEASE
$2,243.70
JPMORGAN CHASE BANK
AMAZON- EQUIPMENT
$1,752.07
JPMORGAN CHASE BANK
AMAZON -PARTS
$96.05
JPMORGAN CHASE BANK
AMAZON- REFUND
($11.48)
JPMORGAN CHASE BANK
AMAZON- SUPPLIES
$523.81
JPMORGAN CHASE BANK
AMAZON- UNIFORM
$775.67
JPMORGAN CHASE BANK
AMZ- EQUIPMENT
$155.70
JPMORGAN CHASE BANK
ATWOOD- SUPPLIES
$118.96
JPMORGAN CHASE BANK
DANA SAFETY- EQUIPMENT
$3,002.45
JPMORGAN CHASE BANK
EBAY - UNIFORM
$40.38
JPMORGAN CHASE BANK
F150LEDS- EQUIPMENT
$885.00
JPMORGAN CHASE BANK
FENIEX - EQUIPMENT
$4,257.55
JPMORGAN CHASE BANK
HARBOR FREIGHT -EQUIP
$532.48
JPMORGAN CHASE BANK
HOME DEPOT- SUPPLIES
$134.30
JPMORGAN CHASE BANK
LOWES- SUPPLIES
$155.00
JPMORGAN CHASE BANK
PAYPAL- SERVICE
$75.00
JPMORGAN CHASE BANK
SEW IT-SERVICE
$37.26
JPMORGAN CHASE BANK
SOUTHERN AG- SUPPLIES
$11.99
JPMORGAN CHASE BANK
STROBES- EQUIPMENT
$388.05
JPMORGAN CHASE BANK
TOMMYS EXP- SERVICE
$34.99
JPMORGAN CHASE BANK
WALMART- SUPPLIES
$72.51
JPMORGAN CHASE BANK
WATERSTONE- UNIFORM
$56.70
VERIZON WIRELESS
WIRELESS CONNECTION
$80.02
GEN ANIMAL CONTROL -Total
$15,521.90
JPMORGAN CHASE BANK
BROWN FARMS -SOD
$96.00
JPMORGAN CHASE BANK
LOWES- SUPPLIES
$4.48
JPMORGAN CHASE BANK
TRACTOR SUP - UNIFORM
$135.99
UNIFIRST HOLDINGS LP
UNIFORM SERVICES
$19.48
GEN CEMETERY -Total
$255.95
JPMORGAN CHASE BANK
PARKS COFFEE -MAINT
$123.94
JPMORGAN CHASE BANK
PARKS COFFEE - SUPPLIES
$262.36
JPMORGAN CHASE BANK
WALMART -DECOR
$32.64
GEN COMM CTR DONATIONS - Total
$418.94
COX COMMUNICATIONS
PHONE USAGE
$17.70
JPMORGAN CHASE BANK
AMAZON- SUPPLIES
$25.38
JPMORGAN CHASE BANK
CINTAS- SUPPLIES
$785.93
JPMORGAN CHASE BANK
COX - SERVICE
$360.00
JPMORGAN CHASE BANK
JOHNSTONE- SUPPLIES
$93.60
JPMORGAN CHASE BANK
LOWES- REFUND
($5.44)
1
Claims List - 01/17/2023
Fund Vendor Name
Payable Description
Payment
Amount
01 GENERAL JPMORGAN CHASE BANK
LOWES- SUPPLIES
$195.92
JPMORGAN CHASE BANK
QUIT BUGGIN -PEST
$95.00
JPMORGAN CHASE BANK
SAMS- SUPPLIES
$126.78
JPMORGAN CHASE BANK
XAVUS- SYSTEM
$900.00
ONEOK INC OKLAHOMA NATURAL GAS
NATURAL GAS USAGE
$1,262.78
SUMNERONE INC
COPIERSERVICES
$228.80
GEN COMMUNITY CENTER -Total
$4,086.45
BLUE ENERGY FUELS LLC
CNG FUEL CHARGES DEC
$48.10
COX COMMUNICATIONS
PHONE USAGE
$28.33
FLEETCOR TECHNOLOGIES
FUEL EXP DEC 22
$329.94
JPMORGAN CHASE BANK
GRAPHIC RES- SUPPLIES
$115.64
JPMORGAN CHASE BANK
ODP- SUPPLIES
$26.38
JPMORGAN CHASE BANK
PAYPAL- REFUND
($249.71)
JPMORGAN CHASE BANK
PIKEPASS -FEES
$12.40
TREASURER PETTY CASH
CONST IND BOARD APPL
$35.00
TULSA COUNTY CLERK
TULSA COUNTY FILINGS
$36.00
VERIZON WIRELESS
WIRELESS CONNECTION
$204.37
GEN COMMUNITY DEVELOPMENT -Total
STORM SIREN #9
$586.45
COX COMMUNICATIONS
PHONE USAGE
$14.16
FLEETCOR TECHNOLOGIES
FUEL EXP DEC 22
$80.66
JPMORGAN CHASE BANK
ODP- SUPPLIES
$139.76
GEN CULTURE & RECREATION - Total
$234.78
COX COMMUNICATIONS
PHONE USAGE
$7.08
OWASSO CHAMBER OF COMMERCE
ECON DEVELOP CONTRACT
$11,001.67
GEN ECONOMIC DEV -Total
FUEL EXP DEC 22
$11,008.75
AT &T
PHONE SERVICE
$3.13
COX COMMUNICATIONS
PHONE USAGE
$3.54
ENTERPRISE FM TRUST
FLEET LEASE
$1,121.85
FLEETCOR TECHNOLOGIES
FUEL EXP DEC 22
$20.91
LEE BHM CORP
PUBLICATION
$64.28
VERDIGRIS VALLEY ELECTRIC COOP
STORM SIREN #14
$31.31
VERDIGRIS VALLEY ELECTRIC COOP
STORM SIREN 915
$31.80
VERDIGRIS VALLEY ELECTRIC COOP
STORM SIREN #9
$31.48
VERIZON WIRELESS
WIRELESS CONNECTION
$40.01
GEN EMERG PREPAREDNESS -Total
$1,348.31
COX COMMUNICATIONS
PHONE USAGE
$28.33
ENTERPRISE FM TRUST
FLEET LEASE
$3,420.18
FLEETCOR TECHNOLOGIES
FUEL EXP DEC 22
$199.71
JPMORGAN CHASE BANK
KUM &GO -FUEL
$40.81
JPMORGAN CHASE BANK
ODP- SUPPLIES
$32.87
2
Claims List - 01/17/2023
Fund Vendor Name
Payable Description
Payment
Amount
01 GENERAL JPMORGAN CHASE BANK
STAPLES- SUPPLIES
$88.60
UNIFIRST HOLDINGS LP
UNIFORM SERVICES
$35.02
VERIZON WIRELESS
WIRELESS CONNECTION
$80.02
GEN ENGINEERING -Total
PHONE USAGE
$3,925.54
AMAX SIGN COMPANY, INC
NAME PLATE
$30.00
BT &CO
ANNUAL AUDIT SERVICES
$15,000.00
COX COMMUNICATIONS
PHONE USAGE
$28.37
JPMORGAN CHASE BANK
GOVT FIN -FEES
$530.00
JPMORGAN CHASE BANK
ODP- SUPPLIES
$20.38
TREASURER PETTY CASH
OFFICE DECOR -ROSS
$62.10
GEN FINANCE -Total
$15,670.85
AT &T
PHONE SERVICE
$9.41
ELIZABETH ANNE CHILDS
LEGAL SERVICES
$315.00
ENTERPRISE FM TRUST
FLEET LEASE
$1,166.58
FLEETCOR TECHNOLOGIES
FUEL EXP DEC 22
$28.62
GRAND GATEWAY ECO. DEV. ASSC.
PELIVAN TRANSIT
$12,095.00
INCOG
CTAG
$1,533.50
JPMORGAN CHASE BANK
AMER WASTE- DISPOSAL
$113.85
JPMORGAN CHASE BANK
ASCAP -FEES
$420.00
JPMORGAN CHASE BANK
QUADIENT -LEASE
$1,110.66
JPMORGAN CHASE BANK
SESAC -FEES
$1,104.00
JPMORGAN CHASE BANK
STAPLES - SUPPLIES
$310.10
LEE BHM CORP
PUBLICATION
$261.26
ONEOK INC OKLAHOMA NATURAL GAS
NATURAL GAS USAGE
$2,945.70
PROSTAR SERVICES INC
COFFEE SUPPLIES
$239.62
SUMNERONE INC
COPIERSERVICES
$175.97
TULSA COUNTY CLERK
TULSA COUNTY FILINGS
$44.00
VERIZON WIRELESS
WIRELESS CONNECTION
$42.17
GEN GENERAL GOVERNMENT -Total
$21,915.44
COX COMMUNICATIONS
PHONE USAGE
$3.54
ONEOK INC OKLAHOMA NATURAL GAS
NATURAL GAS USAGE
$362.77
GEN HISTORICAL MUSEUM -Total
$366.31
JPMORGAN CHASE BANK
SAVON- BANNERS
$1,340.00
GEN HR -CHAR INITIATIVE -Total
$1,340.00
AMERICANCHECKED INC ATTN: BILLING
BACKGROUND CHECKS
$151.90
COX COMMUNICATIONS
PHONE USAGE
$14.16
JPMORGAN CHASE BANK
AMAZON- SUPPLIES
$30.09
JPMORGAN CHASE BANK
FASTSIGNS- DECALS
$101.00
JPMORGAN CHASE BANK
GIANT TV -EMPY DEVELOP
$599.00
JPMORGAN CHASE BANK
INDEED - ADVERTISE
$8176
3
Claims List - 01/17/2023
Fund Vendor Name
Payable Description
Payment
Amount
01 GENERAL JPMORGAN CHASE BANK
INTER PUBLIC -FEES
$156.00
JPMORGAN CHASE BANK
ODP- CABINETS
$2,529.96
JPMORGAN CHASE BANK
ODP- SUPPLIES
$73.99
JPMORGAN CHASE BANK
PELRA -FEES
$116.67
JPMORGAN CHASE BANK
SOCIETY -FEES
$229.00
JPMORGAN CHASE BANK
STRATA - MAGAZINES
$1,096.71
GEN HUMAN RESOURCES -Total
WAVE - SERVICE
$5,182.24
COX COMMUNICATIONS
PHONE USAGE
$21.25
FLEETCOR TECHNOLOGIES
FUEL EXP DEC 22
$46.99
JPMORGAN CHASE BANK
COX - SERVICE
$1,646.67
JPMORGAN CHASE BANK
GODADDY- RENEWAL
$936.32
JPMORGAN CHASE BANK
HOME DEPOT - SUPPLIES
$23.76
VERIZON WIRELESS
WIRELESS CONNECTION
$252.06
GEN INFORMATION TECH - Total
$2,927.05
COX COMMUNICATIONS
PHONE USAGE
$21.25
ENTERPRISE FM TRUST
FLEET LEASE
$369.19
FLEETCOR TECHNOLOGIES
FUEL EXP DEC 22
$63.43
JPMORGAN CHASE BANK
CHAMBER -FEES
$40.00
JPMORGAN CHASE BANK
HOME DEPOT- SUPPLIES
$23.96
JPMORGAN CHASE BANK
ODP- SUPPLIES
$29.46
JPMORGAN CHASE BANK
SAMS- REFUND
($10.98)
GEN MANAGERIAL -Total
$536.31
COX COMMUNICATIONS
PHONE USAGE
$14.16
JPMORGAN CHASE BANK
SAMS - SUPPLIES
$17.98
JPMORGAN CHASE BANK
TYLER USER -FEES
$1,099.00
YOUTH SERVICES OF TULSA
FY23 CONTRACT
$4,125.00
GEN MUNICIPAL COURT -Total
$5,256.14
BLUE ENERGY FUELS LLC
CNG FUEL CHARGES DEC
$76.48
CITY OF OWASSO
WATER SERVICE
$283.50
COX COMMUNICATIONS
PHONE USAGE
$3.54
ENTERPRISE FM TRUST
FLEET LEASE
$4,505.61
FLEETCOR TECHNOLOGIES
FUEL EXP DEC 22
$130.87
JPMORGAN CHASE BANK
CORNERSTONE - SUPPLIES
$46.54
JPMORGAN CHASE BANK
WAVE - SERVICE
$700.00
ONEOK INC OKLAHOMA NATURAL GAS
NATURAL GAS USAGE
$124.97
TREASURER PETTY CASH
OTC TAGS -PARKS
$144.00
UNIFIRST HOLDINGS LP
PARKS STAFF UNIFORMS
$57.06
VERDIGRIS VALLEY ELECTRIC COOP
PARKS ELECTRIC
$5911
VERIZON WIRELESS
WIRELESS CONNECTION
$40.01
GEN PARKS -Total $6,172.29
n
Claims List - 01/17/2023
Fund Vendor Name Payable Description Payment
Amount
01 GENERAL JPMORGAN CHASE BANK AMAZON- SUPPLIES $100.00
JPMORGAN CHASE BANK WALMART- PRISON BOARD $55.90
GEN POLICE COMMUNICATIONS -Total
$155.90
BLUE ENERGY FUELS LLC
CNG FUEL CHARGES DEC
$415.28
ENTERPRISE FM TRUST
FLEET LEASE
$1,140.06
FLEETCOR TECHNOLOGIES
FUEL EXP DEC 22
$2,157.36
JPMORGAN CHASE BANK
BUMPER - TREATMENT
$171.43
JPMORGAN CHASE BANK
LOWES -WOOD
$9.78
JPMORGAN CHASE BANK
OREILLY- TREATMENT
$65.97
JPMORGAN CHASE BANK
TRACTOR SUP - UNIFORM
$135.99
SPIRIT LANDSCAPE MANAGEMENT LLC
LAWN MAINTENANCE
$683.80
TREASURER PETTY CASH
OTC TAGS - STORMWATER
$48.00
UNIFIRST HOLDINGS LP
SAFETY GREEN T- SHIRTS
$116.37
UNIFIRST HOLDINGS LP
UNIFORM SERVICES
$183.84
VERIZON WIRELESS
WIRELESS CONNECTION
$80.02
GEN STORMWATER -Total
MEDLINE- SUPPLIES
$5,207.90
BLUE ENERGY FUELS LLC
CNG FUEL CHARGES DEC
$48.60
COX COMMUNICATIONS
PHONE USAGE
$10.62
ENTERPRISE FM TRUST
FLEET LEASE
$962.36
JPMORGAN CHASE BANK
ODP- SUPPLIES
$22.43
JPMORGAN CHASE BANK
SAMS- SUPPLIES
$480.70
JPMORGAN CHASE BANK
TERMINIX -PEST
$709.00
UNIFIRST HOLDINGS LP
UNIFORMS
$45.00
VERIZON WIRELESS
WIRELESS CONNECTION
$40.01
GEN SUPPORT SERVICES -Total
$2,318.72
AEP /PSO
STREET LIGHTS
$10.92
TREASURER PETTY CASH
CC DEP REF -ENDEX INC
$50.00
TREASURER PETTY CASH
CC DEP REF - GARRISON
$50.00
TREASURER PETTY CASH
CC DEP REF -LEE
$100.00
TREASURER PETTY CASH
CC DEP REF - POPLIN
$50.00
GENERAL -Total
$260.92
GENERAL -Total
$104,697.14
20 AMBULANCE SERVICE FLEETCOR TECHNOLOGIES
FUEL EXP DEC 22
$4,129.85
JPMORGAN CHASE BANK
BEST CHOICE - REPAIR
$330.00
JPMORGAN CHASE BANK
BOUND TREE - SUPPLIES
$3,151.67
JPMORGAN CHASE BANK
CAP WASTE- DISPOSAL
$339.20
JPMORGAN CHASE BANK
LIFE ASSIST- SUPPLIES
$3,057.80
JPMORGAN CHASE BANK
MEDLINE- SUPPLIES
$243.93
JPMORGAN CHASE BANK
SUMNER- SERVICE
$25.34
JPMORGAN CHASE BANK
TELEFLEX- SUPPLIES
$1,345.50
b1
Claims List - 01/17/2023
Fund Vendor Name
Payable Description
Payment
Amount
20 AMBULANCE SERVICE JPMORGAN CHASE BANK
ZOLL- SUPPLIES
$1,397.22
OK STATE DEPT OF HEALTH EMERGENCY
AMBULANCE RENEWAL
$330.00
STRYKER MEDICAL
COT MAINT CONTRACT
$2,364.70
STRYKER MEDICAL
NEW COT & PWR LOADER
$308.28
VERIZON WIRELESS
WIRELESS CONNECTION
$40.01
AMBULANCE -Total $17,063.50
AETNA HEALTH INSURANCE AMBULANCE REFUND $115.67
EDEN KEYS AMBULANCE REFUND $117.82
MILLENNIUM HOSPICE, INC AMBULANCE REFUND $290.51
AMBULANCE SERVICE -Total $524.00
AMBULANCE SERVICE -Total
$17,587.50
21 E -911
COX COMMUNICATIONS
T1 CIRCUITS
$229.00
BUSINESS CARDS
JPMORGAN CHASE BANK
TARGETSOLUT - SOFTWARE
$927.00
$16.00
MOTOROLA SOLUTIONS INC
ASTRO SYST PLUS PKG
$2,651.35
JPMORGAN CHASE BANK
VERIZON WIRELESS
WIRELESS CONNECTION
$40.01
PLTPAYWEB -FEES
E911 COMMUNICATIONS -Total
JPMORGAN CHASE BANK
$3,847.36
E-911 -Total
MESHEK &ASSOCIATES, P.L.C.
ENGINEERING SERVICES
$3,847.36
25 HOTEL TAX
OWASSO CHAMBER OF COMMERCE
ECON DEVELOP CONTRACT
$8,165.00
WIRELESS CONNECTION
HOTEL TAX ECON DEV -Total
STORMWATER - STORMWATER -Total
$8,165.00
$1,551.21
COX COMMUNICATIONS
PHONE USAGE
$7.08
STRONG NEIGHBORHOODS -Total
$7.08
HOTELTAX -Total
$8,172.08
27 STORMWATER MANAGEMENT
MESHEK & ASSOCIATES, P.L.C.
GARNETT IMPROVEMENTS
$8,704.15
GARNETT CULVERT IMPROV -Total
$8,704.15
MESHEK & ASSOCIATES, P.L.C.
ENGINEERING SERVICES -
$17,232.65
NO
NOTTINGHAM DRAINAGE IMPRO -Total
$17,232.65
COX COMMUNICATIONS
PHONE USAGE
$7.08
FELKINS ENTERPRISES LLC
BUSINESS CARDS
$40.00
JPMORGAN CHASE BANK
BROWN FARMS -SOD
$16.00
JPMORGAN CHASE BANK
NEW PIG - SUPPLIES
$238.58
JPMORGAN CHASE BANK
ODP- SUPPLIES
$283.23
JPMORGAN CHASE BANK
PLTPAYWEB -FEES
$3.40
JPMORGAN CHASE BANK
STANDARD SUP - SUPPLIES
$28.95
MESHEK &ASSOCIATES, P.L.C.
ENGINEERING SERVICES
$882.50
UNIFIRST HOLDINGS LP
UNIFORM SERVICES
$11.46
VERIZON WIRELESS
WIRELESS CONNECTION
$40.01
STORMWATER - STORMWATER -Total
$1,551.21
STORMWATER MANAGEMENT -Total $27,488.01
31 AMBULANCE CAPITAL JPMORGAN CHASE BANK AMAZON - ALERTING SYST $52.95
9
Claims List - 01/17/2023
Fund Vendor Name
Payable Description
Payment
Amount
31 AMBULANCE CAPITAL JPMORGAN CHASE BANK
AMAZON -PARTS
$419.80
JPMORGAN CHASE BANK
GRAYBAR- ALERTING SYST
$1,399.34
JPMORGAN CHASE BANK
XYBIX- ALERTING SYST
$1,727.97
STRYKER MEDICAL
NEW COT & PWR LOADER
$45,732.42
AMBULANCE CAPITAL FD -Total
VSN 2025 SPORTS PARK RDS - Total
$49,332.48
AMBULANCE CAPITAL
-Total
$49,332.48
34 VISION TAX
GUY ENGINEERING SERVICES INC 116 - GARNETT TO 129
$6,411.34
CITY OF OWASSO
116TH - GARNETT RD TO 129TH - Total
$6,411.34
VISION TAX -Total
PHONE USAGE
$6,411.34
36 CAPITAL IMPROV GRANTS
R &L CONSTRUCTION LLC SPORTS PARK IMRPROVE
$145,164.60
FLEETCOR TECHNOLOGIES
VSN 2025 SPORTS PARK RDS - Total
$145,164.60
CAPITAL IMPROV GRANTS -Total
$145,164.60
37 SALES TAX FIRE AT &T
PHONE SERVICE
$3.13
CITY OF OWASSO
WATER SERVICE
$73.50
COX COMMUNICATIONS
PHONE USAGE
$116.85
ENTERPRISE FM TRUST
FLEET LEASE
$1,154.21
FLEETCOR TECHNOLOGIES
FUEL EXP DEC 22
$2,363.61
JPMORGAN CHASE BANK
ADVANCE AUTO - SUPPLIES
$36.93
JPMORGAN CHASE BANK
AMAZON- SUPPLIES
$77.24
JPMORGAN CHASE BANK
AMAZON - TRAINING
$155.21
JPMORGAN CHASE BANK
AMAZON- VEHICLE
$179.00
JPMORGAN CHASE BANK
CHEWY- SUPPLIES
$62.68
JPMORGAN CHASE BANK
COMM POW -MAINT
$2,199.61
JPMORGAN CHASE BANK
CROWN- REPAIR
$12.12
JPMORGAN CHASE BANK
DECK STORAGE - VEHICLE
$1,421.37
JPMORGAN CHASE BANK
EMTEC -PEST
$395.00
JPMORGAN CHASE BANK
FASTENAL- REPAIR
$145.45
JPMORGAN CHASE BANK
FEDEX- SHIPPING
$11.04
JPMORGAN CHASE BANK
FIERO -FEES
$300.00
JPMORGAN CHASE BANK
FLEET -FUEL
$927.04
JPMORGAN CHASE BANK
FLEETPRIDE- REPAIR
$93.96
JPMORGAN CHASE BANK
HOME DEPOT - SUPPLIES
$59.88
JPMORGAN CHASE BANK
HOME DEPOT -TOOLS
$7.98
JPMORGAN CHASE BANK
INTER ASSOC -FEES
$220.00
JPMORGAN CHASE BANK
INTER ASSOC- RENEWAL
$128.00
JPMORGAN CHASE BANK
INTER SOCI -FEES
$685.00
JPMORGAN CHASE BANK
JOTFORM- RENEWAL
$348.00
JPMORGAN CHASE BANK
JUSTKIDSPEDS- MEDICAL
$1,950.00
JPMORGAN CHASE BANK
LODGING EXP 01/18 -20
$675.82
JPMORGAN CHASE BANK
MEETING EXP 12115
$47.98
7
Claims List - 01/17/2023
Fund
Vendor Name
Payable Description
Payment
Amount
37 SALES TAX FIRE
JPMORGAN CHASE BANK
MOTOROLA - EQUIPMENT
$5,599.07
JPMORGAN CHASE BANK
MOTOROLA -TOOLS
$59.13
JPMORGAN CHASE BANK
NATION EMERG -FEES
$337.64
JPMORGAN CHASE BANK
OK POLICE SUP - UNIFORM
$8.50
JPMORGAN CHASE BANK
OREILLY -PARTS
$55.08
JPMORGAN CHASE BANK
OREILLY- SUPPLIES
$48.95
JPMORGAN CHASE BANK
PET PLUS - SUPPLIES
$73.66
JPMORGAN CHASE BANK
PIKEPASS -FEES
$19.50
JPMORGAN CHASE BANK
PSN -WATER
$101.81
JPMORGAN CHASE BANK
SAMS- SUPPLIES
$493.74
JPMORGAN CHASE BANK
SAVON- BUSINESS CARDS
$120.00
JPMORGAN CHASE BANK
SIGN IT- VEHICLE
$286.40
JPMORGAN CHASE BANK
SUMNER - SERVICE
$307.10
JPMORGAN CHASE BANK
TARGETSOLUT - SOFTWARE
$5,247.50
JPMORGAN CHASE BANK
TIME TO SHINE -MAINT
$137.64
JPMORGAN CHASE BANK
TRAVEL EXP 01118 -20
$902.85
JPMORGAN CHASE BANK
TULSA TRUCK - VEHICLE
$2,555.00
JPMORGAN CHASE BANK
UPS - SHIPPING
$11.68
JPMORGAN CHASE BANK
USPS - SHIPPING
$6.20
JPMORGAN CHASE BANK
WALMART -FUEL
$59.49
JPMORGAN CHASE BANK
WEATHERTECH- VEHICLE
$354.80
JPMORGAN CHASE BANK
YALE CLEANERS- UNIFORM
$16.90
MARTIN Z HANNA
GLASS TINTING
$200.00
ONEOK INC OKLAHOMA NATURAL GAS
NATURAL GAS USAGE
$4,149.53
VERIZON WIRELESS
WIRELESS CONNECTION
$1,047.58
SALES TAX FUND -FIRE -Total
$36,052.36
SALES TAX FIRE
- Total
$36,052.36
38 SALES TAX POLICE
AT &T
PHONE SERVICE
$9.40
CITY OF OWASSO
WATER SERVICE
$38.50
COX COMMUNICATIONS
PHONE USAGE
$201.83
ENTERPRISE FM TRUST
FLEET LEASE
$2,793.52
FLEETCOR TECHNOLOGIES
FUEL EXP DEC 22
$10,824.56
JPMORGAN CHASE BANK
AARDVARK- EQUIPMENT
$93.00
JPMORGAN CHASE BANK
AMAZON- SUPPLIES
$613.05
JPMORGAN CHASE BANK
AMER WASTE- DISPOSAL
$135.10
JPMORGAN CHASE BANK
ARROWHEAD- SUPPLIES
$804.04
JPMORGAN CHASE BANK
AUTO SPA - SERVICE
$144.00
JPMORGAN CHASE BANK
AUTOZONE -PARTS
$15.29
JPMORGAN CHASE BANK
CORNERSTONE - SUPPLIES
$167.88
JPMORGAN CHASE BANK
EBAY -EMPY RECOG
$17.42
JPMORGAN CHASE BANK
KUM &GO- SUPPLIES
$25.99
Claims List - 01/17/2023
Fund Vendor Name
Payable Description
Payment
Amount
38 SALES TAX POLICE JPMORGAN CHASE BANK
NATION TACT - REFUND
($1,530.00)
JPMORGAN CHASE BANK
NJ CRIMINAL- TRAINING
$1,198.00
JPMORGAN CHASE BANK
ODP- SUPPLIES
$167.66
JPMORGAN CHASE BANK
OFFICE DEPOT - SUPPLIES
$150.64
JPMORGAN CHASE BANK
OREILLY -PARTS
$50.60
JPMORGAN CHASE BANK
PETSMART- SUPPLIES
$40.98
JPMORGAN CHASE BANK
RC KENNELS - SERVICE
$90.00
JPMORGAN CHASE BANK
REIMBURSEMENT
$28.94
JPMORGAN CHASE BANK
SUMNER- RENTAL
$110.42
JPMORGAN CHASE BANK
THOMSON WEST- ACCESS
$454.27
JPMORGAN CHASE BANK
TRAVEL EXP 12111 -17
$659.82
JPMORGAN CHASE BANK
WALMART- SUPPLIES
$107.98
JPMORGAN CHASE BANK
WALMART- UNIFORM
$41.82
JPMORGAN CHASE BANK
WATERSTONE- UNIFORM
$1,032.41
LEE BHM CORP
PUBLICATION
$66.74
ONEOK INC OKLAHOMA NATURAL GAS
NATURAL GAS USAGE
$2,013.97
OWASSO FOP LODGE #149 POLICE DEPT
LEGAL DEFENSE
$213.50
TREASURER PETTY CASH
OTC TAGS -PD
$140.00
TREASURER PETTY CASH
PARKING REIMB - WOLERY
$18.00
VERIZON WIRELESS
WIRELESS CONNECTION
$2,907.68
SALES TAX FUND- POLICE -Total
$23,847.01
SALES TAX POLICE -Total
$23,847.01
39 SALES TAX STREETS AEP /PSO
STREET LIGHTS
$18,018.02
BLUE ENERGY FUELS LLC
CNG FUEL CHARGES DEC
$229.19
COX COMMUNICATIONS
PHONE USAGE
$7.08
FLEETCOR TECHNOLOGIES
FUEL EXP DEC 22
$2,083.56
JPMORGAN CHASE BANK
AMERIFLEX- SUPPLIES
$39.00
JPMORGAN CHASE BANK
ATWOOD- SUPPLIES
$34.99
JPMORGAN CHASE BANK
DUNHAMS- ASPHALT
$920.00
JPMORGAN CHASE BANK
FASTENAL -PARTS
$30.88
JPMORGAN CHASE BANK
GRAINGER- SUPPLIES
$47.16
JPMORGAN CHASE BANK
LOCKE -PARTS
$46.23
JPMORGAN CHASE BANK
LOWES- SUPPLIES
$356.84
JPMORGAN CHASE BANK
TULSA - ASPHALT
$756.42
SIGNALTEK INC
12/2022 TRAFFIC MAINT
$1,465.00
TULSA COUNTY HIGHWAY CONSTRUCTION
SIGNS & STIPING
$160.80
UNIFIRST HOLDINGS LP
SAFETY GREEN T- SHIRTS
$116.37
UNIFIRST HOLDINGS LP
UNIFORM SERVICES
$211.54
VERDIGRIS VALLEY ELECTRIC COOP
1161129 TRAFFIC SIGN
$80.64
VERDIGRIS VALLEY ELECTRIC COOP
CHAMPION STREET LIGHT
$78.00
VERDIGRIS VALLEY ELECTRIC COOP
SECURITY LIGHT
$6.40
p
Claims List - 01117/2023
Fund
Vendor Name
Payable Description
Payment
Amount
39 SALES TAX STREETS
VERIZON WIRELESS
WIRELESS CONNECTION
$120.03
SALES TAX FUND - STREETS -Total
$24,808.17
BECCO CONTRACTORS INC
FY21 STREET REHAB
$191,643.25
STREET REHAB FY20.21 - Total
$191,643.25
SALES TAX STREETS - Total
$216,451.42
40 CAPITAL IMPROVEMENTS
CROSSLAND HEAVY CONTRACTORS
116 ST N - GARNETT TO 129
$339,178.00
116TH - GARNETT RD TO 129TH - Total
$339,178.00
K +D ARCHITECTS LLC
FS1 & FS2 REMODEL
$12,250.00
FIRE STAT #1 RENOVATION -Total
$12,250.00
K +D ARCHITECTS LLC
FS1 & FS2 REMODEL
$12,250.00
FIRE STAT #2 RENOVATION -Total
$12,250.00
STRONGHAND LLC
STREET REHAB FY21 -22
$72,151.91
STREET REHAB FY21 -22 -Total
$72,151.91
CAPITAL IMPROVEMENTS
-Total
$435,829.91
70 CITY GARAGE
COX COMMUNICATIONS
PHONE USAGE
$14.16
JPMORGAN CHASE BANK
AMAZON -TOOLS
$27.40
JPMORGAN CHASE BANK
AMERIFLEX -PARTS
$40.10
JPMORGAN CHASE BANK
AMERIFLEX- SUPPLIES
$87.00
JPMORGAN CHASE BANK
BEST CHOICE - REPAIR
$100.00
JPMORGAN CHASE BANK
DITCH WITCH -PARTS
$81.38
JPMORGAN CHASE BANK
FASTENAL- SUPPLIES
$497.11
JPMORGAN CHASE BANK
FIND IT -PARTS
$151.34
JPMORGAN CHASE BANK
GOODYEAR -TIRES
$949.84
JPMORGAN CHASE BANK
HESSELBEIN -TIRES
$2,687.29
JPMORGAN CHASE BANK
JIM GLOVER -PARTS
$210.00
JPMORGAN CHASE BANK
LENOX- TOWING
$280.00
JPMORGAN CHASE BANK
LIQUIDSPRING -PARTS
$254.58
JPMORGAN CHASE BANK
PAYPAL -PARTS
$350.00
JPMORGAN CHASE BANK
PRECISION -PARTS
$202.64
JPMORGAN CHASE BANK
PTG -PARTS
$421.30
JPMORGAN CHASE BANK
SAVON- DECALS
$495.00
JPMORGAN CHASE BANK
UNITED FORD -PARTS
$693.71
JPMORGAN CHASE BANK
YELLOW HOUSE -PARTS
$2,618.43
ONEOK INC OKLAHOMA NATURAL GAS
NATURAL GAS USAGE
$1,127.02
UNIFIRST HOLDINGS LP
UNIFORMS
$170.68
CITY GARAGE -Total
$11,458.98
CITY GARAGE • Total
$11,458.98
76 WORKERS' COMP SELF -INS
OK TAX COMMISSION SPECIAL TAX UNIT
MITF ASSESSMENTS
$1,107.99
UNITED SAFETY & CLAIMS INC
UNITED SAFETY CLAIMS
$1,658.33
10
Claims List - 01/17/2023
Fund Vendor Name Payable Description Payment
Amount
76 WORKERS' COMP SELF -INS WORKERS' COMP SELF -INS -Total $2,766.32
WORKERS' COMP SELF -INS -Total $2,766.32
77 GENERAL LIABILITY - PROPERT HALL, ESTILL, HARDWICK, GABLE, LEGAL SERVICE FEES $4,677.44
GEN LIAB -PROP SELF INS -Total $4,677.44
GENERAL LIABILITY - PROPERT - Total $4,677.44
City Grand Total $1,093,783.95
11
TO: The Honorable Mayor and City Council
FROM: Brian Dempster, Director of Community Development
SUBJECT: Re- Approval of Real Property Lease - Garnett Right -of -Way
DATE: January 12, 2023
BACKGROUND:
City Council approved at the November 15, 2022, meeting, a Lease Agreement between 815 W
Kenosha LLC, and the City of Owasso for excess right -of -way (ROW) located immediately to the
east of 507 East 19th Street North, to be used for additional parking.
The Lessee has requested amendments to the original lease as follows:
• Article II, 2.01 change the commencement date to January 15, 2023, and the end date
to January 14, 2073
• Article XIII, 13.02 change the Lessee signature name from Michael Brown to Damon
Bedell
• Article XIII, 13.04 is to be removed entirely.
• Article XIII, correct all remaining items to fall in numeric order
RECOMMENDATION:
Staff recommends re- approval of the Lease Agreement between the 815 W Kenosha, LLC, and the
City of Owasso, and authorization to execute all necessary documents.
ATTACHMENT:
Original Lease Agreement with redline changes
STATE OF OKLAHOMA
KNOW ALL PERSONS BY THESE PRESENTS:
COUNTY OF TULSA
THIS LEASE AGREEMENT (the "Lease ") is made and entered into by and between
CITY OF OWASSO, an Oklahoma municipal corporation (the "Lessor "), and 815 W
KENOSHA LLC, an Oklahoma limited liability company (the "Lessee ").
WITNESSETH:
WHEREAS, Lessor is the owner of a parcel of land located in the City of Owasso,
County of Tulsa, State of Oklahoma being more particularly described on Exhibit "A' attached
hereto and made a part hereof for all purposes (the "Lessor's Property "); and
WHEREAS, Lessee is desirous of leasing the Lessor's Property from Lessor, and Lessor
is agreeable to same, subject to the terms and conditions herein.
NOW, THEREFORE, for and in consideration of the foregoing Lessor's Property and the
mutual and respective covenants and undertakings of Lessor and Lessee hereunder, such parties
hereby agree as follows:
ARTICLE I
DEMISE AND DESCRIPTION OF LESSOR'S PROPERTY
1.01. In consideration of the mutual promises herein made, and subject to all of the
terms and conditions hereof, Lessor leases to Lessee, and Lessee accepts from
Lessor, the Lessor's Property free and clear of all liens, restrictions and other
encumbrances other than those matters of public record (the "Permitted
Exceptions "). Notwithstanding anything to the contrary contained herein, Lessor
and Lessee acknowledge and agree that the Lessor's Property may be improved,
in Lessee's sole discretion, with signage, landscaping, parking and related
improvements (the "Improvements "). Improvements shall be at Lessee's sole
expense, and Lessee shall be responsible for construction and maintenance of
Improvements.
ARTICLE II
TERM AND RENEWAL OPTION
2.01. The stated term of this Lease shall be for a period of Fifty (50) years,
commencing on December 1, 2022, (the "Commencement Date ") and, unless sooner terminated,
ending on 30 207 January 14, 2073. The stated term of this Lease, as same may be
and is properly renewed and extended in accordance with Section 2.02 below or any
amendments properly entered into by and between Lessor and Lessee, shall be referred to as the
"Term" of the Lease.
2.02. Provided that Lessee shall not then be in default, then Lessee shall have and is
hereby granted four (4) separate and distinct options to renew and extend the Term of this Lease,
each for an additional ten (10) years upon the same terms and conditions as herein provided.
Lessee shall exercise such renewal and extension option by giving Lessor written notice of an
intent to renew not less than thirty (30) days prior to the originally scheduled expiration of the
Term of the Lease. Failure by the Lessee to timely and properly exercise the renewal and
extension option shall constitute a waiver of the option to extend the Term of this Lease.
2.03. During the Term of this Lease, and any extensions, the Improvements shall be
owned by Lessee.
ARTICLE III
RENT
3.01. As base rental (the "Base Rent ") for the Term of this Lease, Lessee agrees to pay
Lessor Eight Hundred Sixty Dollars ($860.00) upon execution of this Lease and Eight Hundred
Sixty Dollars ($860.00) per year thereafter on the 15th day of each December, commencing
December 15, 2023.
ARTICLE IV
TAXES
4.01. Lessor represents and warrants that the Lessor's property is exempt from ad
valorem taxes and, therefore, Lessee shall not be obligated to pay any property taxes.
ARTICLE V
USE OF LESSOR'S PROPERTY AND COMPLIANCE WITH LAWS
5.01. The Lessor's Property shall be used by Lessee for signage, landscaping, and
ancillary purposes to the commercial business purposes.
5.02. Lessee, at its sole cost and expense, shall promptly execute and fulfill any and all
applicable orders, directives and requirements and otherwise comply with any and all applicable
codes, rules, regulations, ordinances, statutes and laws, (collectively, the "Applicable Laws ") of
the municipal, county, state and federal governments, and all agencies, commissions, boards or
departments thereof and all other official, public, governmental or quasi - governmental
institutions, authorities, subdivisions or instrumentalities having jurisdiction over the Lessor's
Property.
ARTICLE VI
MAINTENANCE REPAIRS AND PAVED AND LANDSCAPED AREAS
6.01. Lessee, at its sole cost and expense, shall maintain, repair, and replace all portions
of the Improvements on the Lessor's Property. Lessee, at its sole cost and expense shall at all
times keep all portions of the Lessor's Property in good order, condition, and repair and in a
clean, sanitary, and safe condition and in accordance with any and all Applicable Laws. Lessee
shall not cause waste, damage, or not cause injury to the Lessor's Property. Lessee will
surrender and deliver up the Lessor's Property upon the expiration of the Term of this Lease, or
its earlier termination, in the same condition which existed after the completion of the
Improvements. In the event the Lessor needs to terminate this Lease as to all or a portion of the
Lessor's Property during the Term of this Lease for purposes of widening the existing right -of-
way or utility relocation on the Lessor's Property, Lessor may do so upon sixty (60) days prior
written notice and without penalty or cost except for reimbursement to the Lessee by Lessor for
improvements made to the property by Lessee. This amount of reimbursement shall decrease
annually as follows: The Lessor shall reimburse the Lessee for the cost of the Improvements (a)
100 % in Year 1; (b) 80% in Year 2; (c) 60% in Year 3; (d) 40% in Year 4; and 20% in Year 5.
Notwithstanding anything herein to the contrary, except as provided above, the Lessor shall not
be responsible for making any repairs to the property in the event utility construction,
maintenance or relocation is required on the Lessor's Property.
ARTICLE VII
SIGNS
7.01. Lessee, at its sole cost and expense, shall have the exclusive right to erect or
attach to the Lessor's Property such signs as it may deem proper and necessary, provided that
each such sign complies with all applicable laws.
ARTICLE VIII
CASUALTY
8.01. In the event the Lessor's Property, or any part thereof excluding Improvements,
shall sustain damage for which insurance proceeds are recovered, Lessee shall give prompt
written notice thereof to Lessor, and Lessee shall receive all proceeds from any Casualty
Insurance to which it may be entitled.
ARTICLE IX
LESSOR'S LIABILITY
9.01 Except in the event of a wrongful eviction of Lessee by Lessor, Lessor's liability
for breach of any covenant hereof shall be expressly limited to the recovery against the Lessor's
interest in the Property. If Lessor sells or transfers all or part of the Property, such transfer shall
be subject to all the terms and conditions of this Lease including (without limitation) Lessee's
Right of First Refusal. Lessor shall not be liable for any injuries or damages occurring on the
Property during the term of this lease, and Lessee hereby agrees to indemnify Lessor for any
such damages which Lessor may be required to pay arising out of accidents, injuries or
occurrences on the Property during the lease term.
ARTICLE X
FORCE MAJEURE
10.01. Whenever a period of time is herein prescribed for the taking of any action by
3
either party, such parry shall not be liable or responsible for, and there shall be excluded from the
computation of such period, any delays due to strikes, riots, acts of God, shortages of labor or
materials, war, governmental law, regulations or restrictions or any other cause whatsoever
beyond the control of the obligated party, not to exceed thirty (3 0) days.
ARTICLE XI
RECORDATION
11.01. Lessee may record this lease if so desired at its own expense.
ARTICLE XII
QUIET ENJOYMENT
12.01. So long as Lessee shall timely and properly pay the Base Rent, and otherwise
perform and satisfy all other obligations, duties and responsibilities required, Lessee shall freely,
peacefully and quietly enjoy and occupy the Lessor's Property for the Term of the Lease, subject
only to the Permitted Exceptions and the terms and conditions of this lease.
ARTICLE XIII
MISCELLANEOUS
13.01. No amendment, modification, or alteration of the terms of this Lease shall be
binding unless it is in writing, dated contemporaneous with or subsequent to the date of this
Lease, and duly executed by the parties to this Lease.
13.02. Any notice, demand, request or other communication required, given or made
under or in connection with this Lease shall be deemed delivered, upon receipt, if hand delivered,
or whether actually received or not, when deposited in a regularly receptacle for the mail, sent by
certified mail, return receipt requested, postage prepaid, addressed as follows:
If to Lessor:
City of Owasso
Attn: City Manager
PO Box 180
Owasso, OK 74055
If to Lessee:
815 W KENOSHA LLC
Attn:lv�Damon Bedell
3510 S 79th E. Ave.
Tulsa, OK 74145
13.03. This Lease shall be construed under and in accordance with the laws of the State
of Oklahoma and is performable in Tulsa County, Oklahoma.
13.0504. In case any one or more of the provisions contained in this Lease shall for
any reason be held to be invalid, illegal, or unenforceable in any respect, such invalidity,
illegality, or unenforceability shall not affect any other provisions, and this Lease shall be
construed as if such invalid, illegal, or unenforceable provision had never been contained herein.
13.0605. If any action at law or in equity is brought by the Lessee, Lessor shall not
be responsible for the payment of Lessee's attorney's fees.
13.0706. The parties hereby declare that it is impossible to measure in money the
damages which will accrue to a party hereto. Therefore, specific performance may be sought
and obtained for any breach of this Lease.
13.0907. This Lease and all other copies of this Lease, insofar as they relate to the
rights, duties, and remedies of the parties, shall be deemed to be one Lease. This Lease may be
executed concurrently in one or more counterparts, each of which shall be deemed an original,
but all of which together shall constitute one and the same instrument.
13.0$08. This Lease contains the entire agreement between the parties with respect
to the subject matter, and Lessor and Lessee acknowledge that they are not relying on any
representation or promise of the other, or of any agency or cooperating agent, except as may be
expressly set forth in this Lease.
13.4809. Whenever herein the singular number is used, the same shall include the
plural, and vice versa, and words of any gender shall include each other gender.
13.10. Lessor hereby grants to Lessee a right of first refusal and option to
purchase the Lessor's Property. This right is fully subject to all statutory requirements requiring
Lessor to obtain bids prior to sale of the property. Provided that Lessee is not then in default
hereunder, upon receipt by Lessor of an acceptable, bona fide written offer from a third party to
purchase the Lessor's Property, as evidenced by a written contract, Lessor shall provide written
notice of the contract to Lessee. Within thirty (30) business days following Lessee's receipt of
the Notice, Lessee may elect to exercise its right of first refusal and option to purchase the
Lessor's Property upon the same terms and conditions set forth in the third party contract by
delivering written notice thereof to Lessor, accompanied by a written contract containing the
identical terms and conditions as the third party contract.
5
EXECUTED by Lessor on this 10th Navembe 17thJanuary, 2023
LESSOR:
CITY OF OWASSO
an Oklahoma Municipal Corporation
by:
Kelly Lewis, Mayor
Juliann Stevens, City Clerk
APPROVED AS TO FORM AND CONTENT:
Julie Trout Lombardi, City Attorney
EXECUTED by Lessee on this! day ofi,�Januarv, 20232.
LESSEE:
815 W KENOSHA LLC
by:
Damon BedellMishael Prown
EXHIBIT "A"
LEGAL DESCRIPTION
BEGINNING at the Southeast corner of Lot 1, Block 1, Ator Heights Third Addition (Plat
#3309), an Addition to Tulsa County in Section 19, Township 21 North, Range 14 East,
THENCE N88°45'57 "E for forty three (43) feet to a point. THENCE N01°15'19 "W parallel to
the East line of said Lot 1, Block 1, Ator Heights Third Addition, for one hundred and
thirty three and thirty hundredths (133.30) feet to a point. THENCE S88°55'24 "W for
forty three (43) feet to a point, being the Northeast corner of said Lot 1, Block 1, Ator
Heights Third Addition. THENCE S01°15'19 "E along the East lot line of said Lot 1, Block
1, Ator Heights Third Addition for one hundred and thirty three and thirty seven
hundredths (133.37) feet to the POINT OF BEGINNING.
TO: The Owasso City Council
FROM: Kelly Lewis, Mayor
SUBJECT: Planning Commission Vacancy- Citizen Appointment
DATE: January 12, 2023
BACKGROUND:
Pursuant to authority contained in Article 2, Section 2 -4, subsection (e) of the Charter of the City
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 will occur on the Planning Commission following the swearing -in of Dr. Paul Loving to
serve as the Word 3 City Councilor. The swearing -in will take place May 2, 2023.
It is, therefore, the purpose of this memorandum to recommend City Council confirmation of the
appointment of Brian Cook to serve on the Owasso Planning Commission beginning May 2, 2023,
until such term expires on June 30, 2025.
TO: The Honorable Mayor and City Council
FROM: Alexa Beemer, Planning Manager
SUBJECT: Ordinance 1203, Rezoning OZ 22 -10, New Public Works Facility
DATE: January 12, 2023
BACKGROUND:
The Community Development Department is submitting a rezoning request for City Council
consideration for property located near the southeastern corner of North 97th East Avenue and
East 116th Street North. The subject property is approximately 63.677 acres in size, and is zoned
Residential Single - Family (RS -3). The property is currently unplatted. The City is requesting a
rezoning to Public Facilities (PF) for the entirety of the property.
SUBJECT PROPERTY /PROJECTDATA:
Properly Size
63.677 acres +/-
Current Zoning
Residential Single-Family RS -3
Proposed Zoning
Public Facility PF
Present Use
Vacant
Land Use Master Plan
Public /Institutional
Within PUD?
No
Within Overlay District?
No
Water Provider
City of Owasso
Sewer Provider
City of Owasso
ANALYSIS:
• The City desires to rezone the subject property to PF, in order to accommodate the
construction of a new Public Works and Maintenance facility.
• The GrOwasso 2035 Land Use Master Plan identifies the subject property for future
Public /Institutional uses.
• Per the Owasso Zoning Code, there are no lot width or lot area minimum requirements
for property zoned PF.
• The City of Owasso will provide police, fire, ambulance, water and sanitary sewer
services to the subject property.
• Any development that occurs on the subject property must adhere to all subdivision,
zoning, and engineering requirements of the City of Owasso.
OZ 22 -10
Page 2
SURROUNDING LAND USE:
Direction
Zoning
Use
Land Use Plan
Jurisdiction
North
Residential Duplex
(RD) / Agricultural
Vacant /
Commercial
City of Owasso /
Residential (AG -R)
Residential
Tulsa County
South
Residential Single-
Family (RS -3)
Residential
Residential
City of Owasso
East
Public Facilities (PF)
Sports Park
Parks & Recreation
City of Owasso
Residential Single-
City of Owasso /
West
Family (RS -3) /
Residential
Residential
Tulsa County
Agriculture (AG)
PLANNING COMMISSION:
The Owasso Planning Commission voted 5 -0 to recommend approval of rezoning request OZ 22-
10 at their regular meeting on January 9, 2023.
RECOMMENDATION:
Staff recommends adoption of Ordinance 1203.
ATTACHMENTS:
Ordinance 1203
Zoning Map
GrOwasso 2035 Land Use Master Plan Map
Rezoning Exhibit
CITY OF OWASSO, OKLAHOMA
ORDINANCE 1203
AN ORDINANCE APPROVING ZONING APPLICATION NUMBER OZ 22 -10 AND
REPEALING ALL ORDINANCES OR PARTS OF ORDINANCES IN CONFLICT
WHEREAS, public hearings have been held regarding the request for rezoning of the
property generally located near the southeastern corner of North 97th East Avenue and East
1 16th Street North, and;
WHEREAS, the Owasso City Council has considered the recommendation of the Owasso
Planning Commission and all statements for or against the rezoning of the property referenced in
Application OZ 22 -10.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF OWASSO, OKLAHOMA,
THAT TO WIT:
SECTION 1.
A tract of land described as generally located near the southeastern corner of North 97th East
Avenue and East 116th Street North, Owasso OK; said tract more particularly described as follows:
A tract of land located in the Northwest Quarter (NW /4) of Section Seven (7) of Township
Twenty -one (21) North and Range Fourteen (14) 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 the NW/4 of Sec. 7, T -21 -N, R -14 -E, I.B. &M.; Thence N 88°53'32" E along the north line of
said NW/4 a distance of 667.82 feet; Thence S 01°34'35" E a distance of 60.00 feet to the
Point of Beginning being on the present right-of-way of East 116th Street North; Thence N
88°53'32" E along the present right -of -way of East 116th Street North a distance of 949.29
feet to the present westerly railroad right -of -way; Thence S 14°15'55" W along the present
westerly railroad right -of -way a distance of 2689.20 feet to the south line of said NW /4;
Thence S 88°44'31" W a distance of 882.96 feet to the SW corner of said NW/4; Thence N
01°34'36" W along the west line of said NW /4 a distance of 1893.47 feet; Thence N
88°50'52"E a distance of 667.82 feet; Thence N 01°34'35" W a distance of 701.40 feet to the
Point of Beginning, and containing 63.677 acres, more or less.
The some is hereby rezoned from Residential Single - Family (RS -3) to Public Facilities (PF).
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.
Ordinance 1203
Page 1 of 3
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 17th day of January, 2023.
Kelly Lewis, Mayor
ATTEST:
Juliann M. Stevens, City Clerk
(SEAL)
APPROVED AS TO FORM:
Julie Lombardi, City Attorney
Ordinance 1203
Page 2 of 3
Note: Graphic overlays may 0 100 200 400
not precisely align with physical Subject
features on the ground. Tract
Aerial Photo Date: 202012021 LXZIA Feet
Surrounding Zoning
oz 22-10
Land Use Master Plan
OZ 22 -10
TO: The Honorable Mayor and City Council
FROM: Alexa Beemer, Planning Manager
SUBJECT: Specific Use Permit (SUP 22 -03) -Take 5 Oil Change
DATE: January 12, 2023
BACKGROUND:
The Community Development Department received an application for review and approval of a
Specific Use Permit (SUP) for an automotive repair and maintenance facility located near the
southeastern comer of East 96th Street North and North 129th East Avenue intersection. The property is
approximately 0.8136 acres in size and zoned Commercial Shopping (CS). The property is platted as a
portion of Lot 3, Block 1, 13000 Center.
SUBJECT PROPERTY /PROJECT DATA:
Property Size
0.8136 acres +/-
Current Zoning
Commercial Shopping (CS)
Proposed Use
Automotive repair & maintenance facility
Land Use Master Plan
Commercial
Within PUD?
No
Within Overlay
District?
No
Water Provider
City of Owasso
Sanitary Sewer
Provider
City of Owasso
Applicable Paybacks
assessed at Platfih
n/a
ANALYSIS:
• An SUP is required in certain zoning districts for uses or structures that may be considered more
intense than what is allowed by right, through the City of Owasso's Zoning Code.
• An oil change facility falls under the "automotive repair and maintenance" use outlined in Table
6.1 of the Owasso Zoning Code. In the CS zoning district, any "automotive repair and
maintenance" facility is allowed with an SUP.
o Thus, an SUP is needed for an oil change facility on this property, as it is zoned CS.
• The subject property is identified for future commercial land uses on the GrOwasso 2035 Land
Use Master Plan.
• The applicant has worked with staff to design the site and new structure in an appropriate
manner that conforms to the design requirements of the Zoning Code and minimizes the
impacts on the neighborhood to the east of the site.
• According to the conceptual site plan, the applicant is requesting to construct a drive-
thru oil change facility that will be approximately one thousand four hundred and
twenty -one (1,421) square feet in size. The facade will be constructed mainly of EFIS
material, thus meeting the design standards outlined in Chapter 11 of the Zoning Code.
• The subject property is buffered from the single - family neighborhood to the east by an
additional vacant commercial loft, approximately 0.80 acres in size. There are existing
SUP 22 -03
Page 2
privacy fences along the western property lines of the adjacent single - family homes in
this neighborhood, as well.
• Further, the proposed structure is to be set back approximately one hundred and
seventy (170) feet from the eastern property line. This means that the structure will be
approximately three hundred and fifty (350) feet from the back fenceline of the
adjacent single - family neighborhood. This separation offers a generous boundary
between the proposed maintenance facility and existing homes to the east.
• The applicant proposes a dense landscaped edge, which includes a number of
screening bushes and trees, along the eastern edge of the property. This landscaping will
further buffer the residential neighborhood to the east.
• The applicant is also proposing additional plantings along 129th East Avenue, to shield the
roadway from any potential light pollution from headlights.
The main purpose of the SUP requirement is to ensure the development does not impose any
negative direct impacts to the neighboring residential area and works in harmony within the
context of the area.
• Considering this, the applicant has indicated via their conceptual site plan that they
intend to install adequate buffering between their site and the neighboring single - family
homes. The design of the site will serve to reduce and minimize any negative impacts on
the single - family neighborhood to the east.
• The subject property is located within one of the busier commercial corridors in the City.
Therefore, a use such as an oil change facility would be in harmony with the existing
commercial uses surrounding the property.
• Any future development that occurs on the subject property must adhere to all Owasso
subdivision, zoning, and engineering requirements.
SURROUNDING ZONING AND LAND USE:
Direction
Zoning
Use
Land Use Master Plan
Jurisdiction
North
Commercial Shopping
Commercial
Commercial
City of Owasso
South
Office (0)
Religious
Institution
Transitional
City of Owasso
East
Commercial Shopping
Vacant
Commercial
City of Owasso
West
Commercial Shopping
Commercial
Commercial
City of Owasso
PLANNING COMMISSION:
The Owasso Planning Commission voted 5 -0 to recommend approval of the Specific Use Permit (SUP 22 -03)
for Take 5 Oil Change at their regular meeting on January 9, 2023.
RECOMMENDATION:
Staff recommends approval of the Specific Use Permit (SUP 22 -03) for the Take 5 Oil Change.
ATTACHMENTS:
Aerial Map
Zoning Map
GrOwasso 2035 Land Use Master Plan Map
SUP Site Plan Package
Note: Grephli overlays may o 100 200 400
not featues on the with Physical Subject SUP 22-03
Ieatures on the ground. SUP 2121 -14
Aerial Photo Date: 2020/2027 Feet IXT
Surrounding Zoning
SUP 22 -03
Land Use Master Plan
SUP 22-03
OWASSO CITY COUNCIL
RESOLUTION No. 2023 -01
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF OWASSO, OKLAHOMA, ACCEPTING
NOTICE OF RETIREMENT FROM THE CITY MANAGER AND HIRING THE ASSISTANT CITY
MANAGER TO FILL THE POSITION OF CITY MANAGER
WHEREAS, the City Manager of the City of Owasso, Warren Lehr, was named Interim
City Manager on May 23, 2013, and became the permanent City Manager on January
13, 2014;
WHEREAS, Warren Lehr has expressed an intention to retire from the City of Owasso on
or about March 2, 2024;
WHEREAS, the Assistant City Manager, Christopher Garrett, has expressed a willingness
to assume the position of City Manager upon Mr. Lehr's retirement.
NOW, THEREFORE BE IT RESOLVED by the City Council of the City of Owasso, Oklahoma,
as follows:
The Owasso City Council hereby accepts the resignation of Warren Lehr, to become
effective on or about March 2, 2024. The City Council further extends an offer for the
position of City Manager to Christopher Garrett to be effective on or about March 2,
2024, with an employment contract to be drafted and approved in the 2023 -2024 fiscal
year no later than December 5, 2023.
Dated this 17th day of January, 2023.
CITY OF OWASSO, OKLAHOMA
Kelly Lewis, Mayor
ATTEST:
Juliann Stevens, City Clerk
Approved as to Form:
Julie Lombardi, City Attorney
CITY OF OWASSO
GENERALFUND
PAYROLL PAYMENT REPORT
PAY PERIOD ENDING 12131122
Department Payroll Expenses Total Expenses
105 Municipal Court
5,981.45
9,544.22
110 Managerial
26,640.44
36,857.12
120 Finance
19,412.18
30,138.95
130 Human Resources
11,489.46
16,751.26
160 Community Development
18,566.34
28,680.00
170 Engineering
22,386.20
34,151.23
175 Information Systems
19,368.80
27,486.50
181 Support Services
11,270.58
16,702.74
190 Cemetery
1,365.35
2,901.20
201 Police Grant Overtime
2,013.65
2,039.72
215 Central Dispatch
2,774.56
4,112.47
221 Animal Control
5,282.22
7,592.74
280 Emergency Preparedness
2,627.02
3,654.05
370 Stormwater /ROW Maint.
8,545.89
14,171.94
515 Park Maintenance
9,221.36
14,553.62
520 Culture /Recreation
8,426.60
13,930.45
550 Community - Senior Center
7,645.33
10,143.74
580 Historical Museum
832.40
929.37
720 Strong Neighborhood
420.00
517.98
General Fund Total
184,269.83
274,859.30
185 Garage Fund Total 10,764.96 17 870.32
255 Ambulance Fund Total 553.85 618.38
215 E911 Communication 25,223.60 38,991.55
250 Fire Fund 37 Total 206,170.23 317 974.46
201 Police Fund 38 Total 215,276.40 324,206.45
300 Streets Fund 39 Total 23,143.25 38,968.81
370 Stormwater Fund 27 Total 6,916.59 11,386.97
150 Worker's Compensation Total
720 Strong Neighborhoods Total 4,484.25 6,419.88
CITY OF OWASSO
HEALTHCARE SELF INSURANCE FUND
CLAIMS PAID PER AUTHORIZATION OF ORDINANCE #789 AS OF 1112
VENDOR DESCRIPTION
AETNA 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
VSP VISION MEDICAL SERVICES
VISION DEPT TOTAL
HEALTHCARE SELF INSURANCE FUND TOTAL
AMOUNT
490.11
41,151.24
120,810.96
162,452.31
2,107.00
6,197.30
3,107.04
11,411.34
2,272.80
2,272.80
176,136.45
CITY OF OWASSO
GENERAL FUND & HALF -PENNY SALES TAX
FISCAL YEAR 2022 -2023
Budgetary Basis
Statement of Revenues & Expenditures
As of December 31. 2022
Q:\Finance (120)1Accounting \Reports \Current FY\GF Financials
MONTH
YEAR
PERCENT
TO -DATE
TO -DATE
BUDGET
OF BUDGET
REVENUES:
Taxes
$ 3,832,114
$ 22,774,128
$ 43,633,932
52.19%
Licenses & permits
8,045
133,752
324,752
41.19%
Intergovernmental
100,125
660,851
1,462,737
45.18%
Charges for services
62,637
405,219
781,157
51.87%
Fines & forfeits
21,819
186,925
181,100
103.22%
Other
7,158
175,088
171,073
102.35%
Interest
26,518
104,289
77,446
134.66%
TOTAL REVENUES
$ 4,058,416
$ 24,440,252
$ 46,632,197
52.41%
EXPENDITURES:
Personal services
$ (2,017,941)
$ (11,836,836)
$ (25,386,558)
46.63%
Materials & supplies
(111,091)
(856,157)
(2,010,068)
42.59%
Other services
(146,959)
(1,466,597)
(3,979,669)
36.85%
Capital outlay
(191,159)
(1,036,031)
(6,596,494)
15.71%
Deferred Budget - COVIDGrant
0.00%
TOTAL EXPENDITURES
$ (2,467,151)
$ (15,195,621)
$ (37,972,789)
40.02%
REVENUES OVER EXPENDITURES
$ 1,591,265
$ 9,244,631
$ 8,659,408
TRANSFERS IN (OUT):
Transfers in
$ 1,971,921
$ 11,725,009
$ 22,52,339
52.06%
Transfers out
(3,122,211)
(18,552,627)
(37,771,944)
49.12%
TOTAL TRANSFERS
$ (1,150,289)
$ (6,827,618)
$ (15,249,605)
44.77%
NET INCOME (LOSS)
$ 440,976
$ 2,417,013
$ (6,590,197)
ENCUMBRANCES OUTSTANDING
$ (2,087,988)
FUND BALANCE (Budgetary Basis)
Beginning Balance
20,365,421
20,365,421
Ending Balance
$ 20,694,447
$ 13,775,224
Q:\Finance (120)1Accounting \Reports \Current FY\GF Financials
TO: The Honorable Mayor and City Council
City of Owasso
FROM: Robert Curfman, Audit Committee Chair
SUBJECT: Fiscal Year 2021 -22 Audit Report
DATE: January 10,2023
BACKGROUND:
The Annual Comprehensive Financial Report (ACFR) is prepared in accordance with generally
accepted accounting principles as part of the state- required audit by an independent,
certified and municipally licensed auditor. The ACFR includes financial reports for the City, as
well as, the Owasso Public Works, Owasso Public Golf, and the Owasso Economic Development
authorities.
In Owasso, the auditor reports to the Audit Committee established by the Council. The City of
Owasso's Audit Committee and members of City staff met with Stacey Hammond, C.P.A.,
Director with the City's auditor, BT&Co., P.A. on January 10, 2023. Members of the Audit
Committee are Robert Curfman, Chair; Jack Murray, Vice Chair; Andrea O'Dell; Secretary; Nick
Sokolosky, member; and Kelly Lewis, Council representative.
The Audit Committee received and reviewed the Annual Comprehensive Financial Report
(ACFR) for which the auditor issued an unmodified opinion. Also presented and reviewed by
the Audit Committee was the Single Audit Reports and Supplementary Schedules and the
auditor's management letter.
The audit also attests to the City's compliance with Oklahoma State Law and federal reporting
requirements. The Audit Committee acknowledges the City is responsible for completeness and
accuracy of the annual report.
BT &Co., P.A. provided an unmodified opinion and found no deficiencies in internal control that
were considered to be significant or material related to the audit for fiscal year 2021 -2022.
Financial and activity highlights can be found in the ACFR under Management's Discussion and
Analysis.
Additionally, the committee met with Stacey Hammond, C.P.A., independent of staff, to discuss
any further questions or concerns regarding any audit findings. The Audit Committee was
satisfied with the reports and related information.
200 S Main St 1 (918) 376 -1500
PO Box 180 City of Owasso FAX (9181376-1599
Owasso, OK 74055 A City Of Character www.cityofowasso.com
January 10, 2023
Page 2
RECOMMENDATION:
Since council action is not required for the acceptance or rejection of the financial statement
audit, the audit committee recommends the following item be placed on the January 17, 2023,
council agenda to give formal notice that the fiscal year 2022 audit has been completed:
"Notification of the receipt and filing of the City's annual financial audit for the fiscal year ended
June 30,2022."
RobeifCurfman, Chair
City of Owasso Audit Cc
Annual Comprehensive
Financial Report
City of Owasso, Oklahoma
Year Ended June 30, 2022
City Manager
Warren Lehr
Assistant City Manager
Chris Garrett
PREPARED BY:
Director of Finance
Carly Novozinsky
Assistant Director of Finance
Teresa Kimball
CITY OF OWASSO, OKLAHOMA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
Year ended June 30, 2022
TABLE OF CONTENTS
INTRODUCTORY SECTION Page
Letter of Transmittal 1- vii
GFOA Certificate of Achievement viii
List of Principal Officials ix
Organizational Chart x
FINANCIAL SECTION
Independent Auditors' Report A - C
Management's Discussion and Analysis MDA -1 - MDA -11
Basic Financial Statements
Government -wide Financial Statements:
Statement of Net Position
Statement of Activities
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 56
Required Supplementary Information
Schedule of Changes in the City's Total OPEB Liability and 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, 2022
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 Changes in Net 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 Proportionate Share of the Net Pension Liability (Asset)
Oklahoma Municipal Retirement Fund
RSI - 11
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
Nonmajor 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, 2022
TABLE OF CONTENTS
FINANCIAL SECTION (continued) Page
Other Supplementary Information - Supplemental Combining and
Individual Fund Financial Statements and Schedules (continued)
Juvenile Court Fund
051-10
Hotel Tax Fund
OSI-11
Stormwater Management Fund
OSI-12
Federal Grants Fund
OSI-13
Ambulance Capital Fund
OSI-14
Tax Incremental Financing Fund
OSI-15
Park Development Fund
OSI-16
Capital Projects Grant Fund
OSI-17
Debt Service Fund
OSI-18
Major Capital Project Fund Budgetary Comparison Schedules
Major Capital Project Fund Definitions
OSI-19
Vision Recapture Tax Fund Budgetary Comparison Schedule
S-2-S-7
Schedule of Revenues, Expenditures and Changes in Fund Balance
OSI-20
Reconciliation of the Vision Recapture Tax Fund Balance
Sheet to the Budgetary Vision Recapture Tax Fund
OSI-21
Capital Improvement Fund Budgetary Comparison Schedule
Schedule of Revenues, Expenditures and Changes in Fund Balance
OSI-22
Reconciliation of the Capital Improvement Fund Balance
Sheet to the Budgetary Capital Improvement Fund
OSI-23
Internal Service Funds
Internal Service Funds Definitions
OSI-24
Combining Balance Sheet
OSI-25
Combining Statement of Revenues, Expenditures
and Changes in Net Position
OSI-26
Combining Statement of Cash Flows
OSI - 27 - OSI - 28
Budgetary Comparison Schedule
City Garage Fund
OSI-29
Budgetary Comparison Schedule
Self- Insurance Funds
051-30
STATISTICAL SECTION - UNAUDITED
Statistical Section Definitions S
S- 1
Financial Trends S
S-2-S-7
INTRODUCTORY
SECTION
December20, 2022
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 Annual Comprehensive Financial Report (the Report) of
the City of Owasso, Oklahoma (the City) for the year ended June 30, 2022. 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, 2022. 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 auditor's
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 Grant 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.citvofowasso.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 38,732 people in
2021 -22, representing a 1.3% increase over 2021. Owasso's municipal boundaries contain
portions of Tulsa and Rogers Counties, with approximately 90% 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 1 :r 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 Fund
Emergency Siren Fund
Juvenile Court Fund
Hotel Tax Fund
Stormwater Management Fund
Federal Grants Fund
Capital Project Funds:
Vision Recapture Tax Fund
Capital Improvements 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 2021 -22 increased by $4.3 million or 9.8% totaling $48.1 million
compared to $43.8 million in FY 2020 -21. The FY 2021 -22 increase is primarily attributable to a
growing community, retailers who attracted shoppers from surrounding communities, and
increased collections related to online sales.
Page iii
Owasso's economic outlook is positive based on the following:
• 6.2% projected gain in sales tax base
• 15.1 % projected gain in use tax base
1 %projected population growth
2.5% 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 2022 -23.
Water rates were increased according to the five -year plan approved by Council in 2021.
Consistent, planned increases were needed to fund increased labor and material costs and
planned debt service for upgrades to the wastewater treatment plant, Coffee Creek Lift Station,
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 continue to grow in 2022 -23. Currently, Owasso is
ranked twentieth in Oklahoma's largest retail markets.
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.
There are currently nine hotels located in the City of Owasso. FY 2021 -22 Hotel tax revenues
increased 36% over FY 2020 -2021. 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.
During fiscal year 2021 -22, there were 252 residential building permits and 619 multi - family building
permits issued. The combined construction value of these permits is $111.4 million. With residential
building permits at a ten -year high, the outlook for local construction is positive.
There were 28 commercial permits issued in fiscal year 2021 -22 with a total construction value of
$45.1 million. The outlook for commercial development within the City is also positive.
Economic forecasting estimates a 2.9% increase in jobs located In Owasso.
Page 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 citizen4nvolved 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; I 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
httr)://citvofowasso.com/DocumentCenter/View/l 045
Current list of projects eligible for Capital Improvement funds
bffr)://weblink.citvofowasso.com/WebL'ink8/0/doc/I 89147/Paae l .asox
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 10% and 15% of their combined revenues. For 2021 -22, Council set the budgeted
combined ending reserves at 30% 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 a 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 sometime a 0.6% Vision 2025
Tulsa County sales tax expired.
Page vi
The City has for many years utilized sales tax rebates to incentivize major retailers to locate in
Owasso. As a 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 been 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 2%
sales tax on businesses locating within the TIF District subsequent to the December 20, 2016,
creation date.
The City also collects a 2% Franchise tax on utilities, a 5% 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, 2021. This was the 6th
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 sincere 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.
Carly Novozinsky,
Director of Finance
Teresa Kimball,
Assistant Director of Finance
Page vii
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City Of Owasso
Oklahoma
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30. 2021
Executive Director CEO
Page viii
CITY OF OWASSO, OKLAHOMA
LIST OF PRINCIPAL OFFICIALS
June 30, 2022
CITY COUNCIL MEMBERS
Kelly Lewis, Mayor
Alvin Fruga, Vice Mayor
Bill Bush
Lyndell Dunn
Doug Bonebrake
CITY MANAGER
Warren Lehr
ASSISTANT CITY MANAGER
Chris Garrett
DIRECTOR OF FINANCE
Carly Novozinsky
ASSISTANT DIRECTOR OF FINANCE
Teresa Kimball
Page ix
ORGANIZATION CHART
Citizens of Owasso
City of Owasso City
Council
City Attorney /
General Counsel
City Manager
Assistant City
Manager
Administrative
City Clerk Court
Community
Economic
Finance
Fire /EMS Services
Human Resources
Information
Police Service
Public Works
Recreation 8
Culture:
Community
Center, Golf,
Museum, Parks
Support Services
Strong
Neighborhoods
Page x
FINANCIAL
SECTION
INDEPENDENT AUDITORS' REPORT
The Honorable Mayor and Members of the
City Council
City of Owasso, Oklahoma
Report on the Audit of the Financial Statements
Opinions
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 of Owasso, Oklahoma (the City), as of and for the year ended June 30, 2022, and the related
notes to the financial statements, which collectively comprise the City's basic financial statements as
listed in the table of contents.
In our opinion, the accompanying 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, 2022, 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.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States
of America (GAAS) and the standards applicable to financial audits contained in Government Auditing
Standards issued by the Comptroller General of the United States (Government Auditing Standards). Our
responsibilities under those standards are further described in the Auditors' Responsibilities for the Audit of
the Financial Statements section of our report. We are required to be independent of the City, and to
meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to
our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide
a basis for our audit opinions.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in
accordance with accounting principles generally accepted in the United States of America, and for the Q
design, implementation, and maintenance of internal control relevant to the preparation and fair o
presentation of financial statements that are free from material misstatement, whether due to fraud or
error.
In preparing the financial statements, management is required to evaluate whether there are conditions
or events, considered in the aggregate, that raise substantial doubt about the City's ability to continue as
a going concern within one year after the date that the financial statements are issued or available to
be issued.
Page A
An Independently Owned Member, RSM US Alliance
RSM US Alliance member firms are separate and independent businesses and legal entities that are responsible for their own acts and omissions, and each a. separate and
independent from RSM US I.I.P. RSM US LLP is the U.S. member firm of RSM International. a global network of Independent audit, tax, and consulting firms. Members of RSM US
Alliance have access to RSM International resources through RSM US LLP but are not member firms of RSM International.
Auditors' Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditors' report that
includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance
and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government
Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a
material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve
collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Misstatements are considered material if there is a substantial likelihood that, individually or in the
aggregate, they would influence the judgment made by a reasonable user based on the financial
statements.
In performing an audit in accordance with GAAS and Government Auditing Standards, we
• exercise professional judgment and maintain professional skepticism throughout the audit.
• identify and assess the risks of material misstatement of the financial statements, whether due
to fraud or error, and design and perform audit procedures responsive to those risks. Such
procedures include examining, on a test basis, evidence regarding the amounts and
disclosures in the financial statements.
• obtain an understanding of internal control relevant to the audit 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 City's internal control. Accordingly, no such opinion is
expressed.
• evaluate the appropriateness of accounting policies used and the reasonableness of
significant accounting estimates made by management, as well as evaluate the overall
presentation of the financial statements.
• conclude whether, in our judgment, there are conditions or events, considered in the
aggregate, that raise substantial doubt about the City's ability to continue as a going
concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters,
the planned scope and timing of the audit, significant audit findings, and certain internal control - related
matters that we identified during the audit.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that 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 is the responsibility of
management and, 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 GAAS, 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.
Page B
Supplementary 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 and individual nonmajor fund
financial statements and schedules are presented for purposes of additional analysis and are 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 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 GAAS. In our opinion, the accompanying supplementary
information is fairly stated, in all material respects, in relation to the basic financial statements as a whole.
Other Information
Management is responsible for the other information included in the annual report. The other information
comprises the introductory and statistical sections but does not include the basic financial statements
and our auditors' report thereon. Our opinions on the basic financial statements do not cover the other
information, and we do not express an opinion or any form of assurance thereon.
In connection with our audit of the basic financial statements, our responsibility is to read the other
information and consider whether a material inconsistency exists between the other information and the
basic financial statements, or the other information otherwise appears to be materially misstated. If,
based on the work performed, we conclude that an uncorrected material misstatement of the other
information exists, we are required to describe it in our report.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated
December 20, 2022 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
City's internal control over financial reporting and compliance.
December 20, 2022
Topeka, Kansas
BT e, f P. A
Page C
Management's Discussion and Analysis
City of Owasso, Oklahoma
June 30, 2022
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, 2022. 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, 2022, the City's total net position increased by $27.7 million
or 11.8% 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 $42.2 million and
were funded by program revenues of $15.3 million and further funded with taxes and other
general revenues (net of transfers) that totaled $48 million.
• Total program revenues in the City's business -type activities exceeded expenses by
approximately $1.7 million. This increase in net position was due primarily to increased
usage rates and pandemic related capital project delays. The trust authority recognized
the need to increase revenues to eliminate the operating loss and adopted a rate structure
with 5% to 6% 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, 2022, the General Fund reported a total fund balance of $15.7 million, an
increase of $0.2 million from the prior year due to conservative budgeting of sales and use
tax revenues.
• For budgetary reporting purposes, the General Fund reported total resources equal to
106.4% of budget, and expenditures which were 87.8% 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 govemment -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, 2022
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.
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.
MDA Page 2
Management's Discussion and Analysis
City of Owasso, Oklahoma
June 30, 2022
REPORTING THE CITY'S MOST SIGNIFICANT FUNDS -- Continued
Fund Financial Statements -- Continued
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 some way that all activities are reported
in the Statement of Net Position and the Statement of Revenues, Expenses and Changes in Fund
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 2020 -21 or FY 2021 -22.
A FINANCIAL ANALYSIS OF THE CITY AS A WHOLE
NET POSITION
The City's combined net position increased from $235.0 million to $262.7 million between fiscal
years 2020 -21 and 2021 -22. Looking at the net position of governmental and business -type
activities separately, governmental activities increased $21.1 million primarily due to growing
sales and use taxes, public safety grants, and delays in capital spending due to COVID -19.
The net position for Business -type activities increased by $6.6 million primarily due to City transfers
to the Trust Authority and growing sales fax collections. For FY 2021 -22, 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, 2022
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 net investment in capital assets is largely due to street improvements and other
capital projects.
CHANGES IN NET POSITION
For the year ended June 30, 2022, 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.
MDA Page 4
Total
Governmental
Business -Type
Percentage
Activities
Activities
Total
Change
2021
2022
2021
2022
2021
2022
2021 -2022
Current and other assets
$ 51,593
$ 78,105
$ 43,376
$ 29,534
$ 94,969
$ 107,639
13.3%
Capital assets, net
169,642
170;206
67,841
84,963
237,483
255,169
7.4%
Total assets
221,235
248,311
111,217
114,497
$332,452
$362,808
9.1%
Deferred outflows of
resources
9,193
7,821
666
476
9,859
8,297
-15.8%
Long -term debt outstanding
$ 25,698
$ 14,883
$ 74,029
$ 67,967
$ 99,727
$ 82,850
-16.9%
Other liabilities
2,685
3,924
3,074
4,775
5,759
8,699
51.1%
Total liabilities
28,383
1.8,807
77,103
72,742
105,486
91.549
-13.2%
Deferred inflows of
resources
1,581
15,719
273
1,165
1,854
16,884
810.7%
Net position
Net investment in
capital assets
$ 169,642
$ 169,811
$ 52,758
$ 53,640
$ 195,794
$ 198,556
1.4%
Restricted
25,583
39,907
1,387
1,715
26,183
41,622
59.0%
Unrestricted
5,239
11,888
19638
14,289
12.994
22,494
73.1%
Total net position
$200,464
221,606
34,507
41,066
234,971
262,672
11.8%
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 net investment in capital assets is largely due to street improvements and other
capital projects.
CHANGES IN NET POSITION
For the year ended June 30, 2022, 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.
MDA Page 4
Management's Discussion and Analysis
City of Owasso, Oklahoma
June 30, 2022
CHANGES IN NET POSITION -- Continued
The increase in Governmental expenses is primarily due to changes in capital assets. The increase
in Business -Type Activities expense is primarily due to cost increases.
MDA Page 5
Total
Governmental
Business
-Type
Percentage
Activities
Activities
Total
Change
2021
2022
2021
2022
2021
2022
2021 -2022
EXPENSES
General government
$ 4,834
$ 9,006
$ 4.834
$ 9,006
863%
Public safety
24,915
21,839
24,915
21,839
-12.3%
Community development
842
842
842
842
0.0%
Recreation and culture
1,901
1,965
1,901
11965
3.4%
Economic development
471
449
471
449
-4.7%
Public works
8,482
8,105
BA82
8,105
-4.4%
Water
7,106
7,082
7,106
7.082
-0.3%
Wastewater
5;416
5.646
5,416
5,646
42%
Sanitation
1,921
1,889
1,921
11889
-1.7%
Recycle center
293
256
293
256
-12.6%
Economic development
359
473
359
473
31.87
Golf
1.526
1,684
1,526
1,684
10.4%
TOTAL EXPENSES
41,445
42,206
16.621
17,030
58,066
59,236
2.0%
PROGRAM REVENUES
Charges forservices
5.493
5.676
17,074
17,467
22,567
23,143
2.6%
Operating grants and
contributions
6,196
6,700
6,196
6,700
8.1%
Capital grants and
contributions
799
2.965
405
1,231
1,204
4,196
2485%
Total program revenues
12.488
15341
17,479
18,698
29,967
34,039
13..6%
NET REVENUES (EXPENSES)
(28,957)
(26,865)
858
1,668
(28.099)
(25,197)
-10.3%
General revenues
Sales taxes
39,586
43,553
39,586
43,553
10.0%
Use taxes
4,239
4,581
4,239
4,581
8.1%
Franchise and public service taxes
11110
1,285
11110
1.285
15.8%
Hotel foxes
467
636
467
636
36.2%
Intergovernmental
772
870
772
870
12.7%
Inv estment income
174
35
34
44
208
79
-62.0%
Miscellaneous
547
547
1.894
2463%
TOTAL GENERAL REVENUES
46,895
52,854
34
44
46,929
52,898
12.7%
Changes before transfers
17,938
25.989
892
1,712
18,830
27,701
47.1%
Transfers
(4,903)
(4,847)
4.903
4,847
0.0%
CHANGE IN NET POSITION
13.035
21,142
5,795
6,559
18,830
27,701
47.1%
NET POSITION, BEGINNING
187,429
200,464
28,712
34,507
216.141
234,971
8.7%
NET POSITION, ENDING
$ 200,464
$ 221,606
$ 34,507
$ 41.066
$ 234,971
$ 262,672
11.8%
MDA Page 5
Management's Discussion and Analysis
City of Owasso, Oklahoma
June 30, 2022
Governmental Fund Balances
General Fund - The fund balance increase is primarily due to tax collections exceeding budget
projections due to conservative budgeting of revenues.
Vision Recapture Tax Fund - Sales tax revenues of 0.55% 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 3% sales
tax to 3.50% effective April 1, 2015. The additional half penny is restricted by Ordinance to
spending on police, fire, and streets, and is recorded as revenue within the Half -Penny Sales Tax
Fund. The fund balance increase is due to sales tax collections exceeding budget projections.
Capital Improvements Fund - Funding for the Capital Improvements Fund comes from a 1% sales
tax restricted for capital expenditures. The increase in fund balance is primarily due to delays in
capital projects due to the pandemic, as well as sales tax collections exceeding budget
projections.
Other Governmental Funds - The fund balance increase is largely due to project delays, as well
as hotel tax collections exceeding budget projections.
Governmental Fund Balances (Reported in Thousands)
As of June 30 Year End
Major Fund Budgetary Statement Highlights
General Fund - The original FY 2021 -22 budget included a 1.5% decrease in tax revenues.
Actual fax revenues came in above the original budget by 14.5 %. The sales tax revenue and
transfer budgets were revised mid -year to reflect the additional sales fax revenue.
Grant and other governmental revenue budgets were also revised as new grants were awarded.
Approximately $0.5 million in public safety grants (partially awarded after the budget was
adopted) are reflected in the Final budget. Court fines and costs were under budget largely
due to suspension of court due to the COVID -19 pandemic at the beginning of the fiscal year.
Court fines were also down due to a Supreme Court decision transferring Native American
prosecution to the respective tribe.
MDA Page 6
Change in
Fund
Governmental Funds
2021
2022
Balance
General
$ 15,491
$ 15,682
$ 191
Vision Recapture Tax
10,817
16,150
5,333
Half -Penny Sales Tax
6,528
91109
2,581
Capital improvements
6,012
12,047
6;035
Other Governmental
5,860
9,213
3,353
Total Governmental Fund
Balances
$ 44,708
$ 62,201
$ 17,493
Major Fund Budgetary Statement Highlights
General Fund - The original FY 2021 -22 budget included a 1.5% decrease in tax revenues.
Actual fax revenues came in above the original budget by 14.5 %. The sales tax revenue and
transfer budgets were revised mid -year to reflect the additional sales fax revenue.
Grant and other governmental revenue budgets were also revised as new grants were awarded.
Approximately $0.5 million in public safety grants (partially awarded after the budget was
adopted) are reflected in the Final budget. Court fines and costs were under budget largely
due to suspension of court due to the COVID -19 pandemic at the beginning of the fiscal year.
Court fines were also down due to a Supreme Court decision transferring Native American
prosecution to the respective tribe.
MDA Page 6
Management's Discussion and Analysis
City of Owasso, Oklahoma
June 30, 2022
Major Fund Budgetary Statement Highlights -- Continued
The June 30, 2022, General Fund year -end fund balance was 40% 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.
For the year ended June 30, 2022, the City's governmental activities revenues were funded as
follows:
Governmental Activities Sources
m Other Taxes ❑ Intergovernmental
Other Revenues
MDA Page 7
Management's Discussion and Analysis
City of Owasso, Oklahoma
June 30, 2022
GOVERNMENTAL ACTIVITIES -- Continued
Uses of governmental activities in 2021 -22 were as follows:
1.1%
4.7%
2.0%
Governmental Activities Uses
51.7%
• General Government
%
• Public Safety
■ Community Development
■ Recreation & Culture
■ Economic Development
■ Public Works
For the year ended June 30, 2022, expenses for governmental activities totaled $42.2 million, an
increase from prior year of $0.8 million. Governmental transfers to business -type activities totaled
$4.8 million primarily due to a General fund transfer to subsidize the Golf Course 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 $48.0 million. Grants and other contributions that directly benefited programs
funded $9.7 million, and charges for services totaled $5.7 million.
GOVERNMENTAL ACTIVITIES SOURCES AND USES
MDA Page 8
Charges for Services,
Net Revenue
Capital and
Total Expense
(Expense)
Operating Grants
of Services
of Services
General government
$ 2,910,278
$ 9,005,514
$ (6,095,236)
Public safety
5,660,207
21,839,963
(16,179,756)
Community development
451 ,202
841,744
(390,542)
Recreation and culture
246,001
1,965,209
(1,719,208)
Economic development
12,396
449,102
(436,706)
Publicworks
6,061,090
8,104,919
(2,043,829)
TOTAL
$ 15,341,174
$ 42,206,451
$ (26,865,277)
MDA Page 8
Management's Discussion and Analysis
City of Owasso, Oklahoma
June 30, 2022
BUSINESS -TYPE ACTIVITIES
Net Revenue (Expense) of Business -Type Activities for the year ended June 30, 2022 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 $2.9 million for the year ended June 30, 2022 compared to a $1.9 million net gain in FY
2020 -21. It is important to note that Council adopted a five -year rate increase plan in 2021
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
$ 8,167,128
$ 7,081,813
$ 1,085,315
Wastewater
6,936,501
5,645,719
1,290,782
Sanitation
2,557,530
1,889,401
668,129
Recycle center
68,845
256,040
(187,195)
Economic development
473,406
(473,406)
Golf
967,854
1,684,014
(716,160)
TOTAL
$ 18,697,858
$ 17,030,393
$ 1,667,465
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 $2.9 million for the year ended June 30, 2022 compared to a $1.9 million net gain in FY
2020 -21. It is important to note that Council adopted a five -year rate increase plan in 2021
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, 2022
CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets
At June 30, 2022, the City had $255 million invested in capital assets, net of depreciation (See
table below). This represents a net increase of $17.7 million or 7.5 % over last year. Significant
capital assets added this year include construction in progress on the Wastewater Treatment
Plant of $13.1 million, improvements to the Coffee Creek Lift Station of $4.2 million, and
construction in progress on various street projects of $5.4 million, as well as contributed capital of
$4 -2 million.
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 $82.8 million in long -term liabilities which represents a $16.9 million, or
16.9 %, decrease from the prior year. The largest decrease was attributed to the $11.6 million
decrease in net pension liability. Because no new debt was issued during the fiscal year, normal
debt service payments resulted in a $5.7 million decrease in notes payable, net.
MDA Page 10
City of Owasso Capital Assets
(Net of accumulated depreciolion /amortization)
Governmental
Business -Type
Activities
Activities
Total
2021 2022
2021 2022
2021
2022
Land
$ 18,749,066 $ 14,748,272
$ 322.519 $ 322.619
$ 19,071,585
$ 15.070,891
Buildings
21423,472 20,260,318
804A90 759,696
22,227,962
21.020.014
Improvements
19,046,808 18.333,203
1,399.254 1,360,289
20,406,062
19,693,492
58,169,716 57,161,268
58,189,716
57,161,268
Machinery &Equipment
6,728,042 6.179.830
3,033.787 3,152,272
9.761,829
9.332,102
Inlmstructure
64,695,637 65,225,397
64.895,637
65,225,397
Construction In Progess
38,799.522 45,314.734
4,091,548 22,216,715
42,891.070
67,521,49
RIQI,Mo-Us Leased Machinery 8 Equipment
144,637
144,637
Totals
$169.642,547 $170.216,391
$67,841,314 $84,962,&59
$237.483.861
$255,169,250
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 $82.8 million in long -term liabilities which represents a $16.9 million, or
16.9 %, decrease from the prior year. The largest decrease was attributed to the $11.6 million
decrease in net pension liability. Because no new debt was issued during the fiscal year, normal
debt service payments resulted in a $5.7 million decrease in notes payable, net.
MDA Page 10
Management's Discussion and Analysis
City of Owasso, Oklahoma
June 30, 2022
Lona -Term Debt -- Continued
The City's long-term debt by type of debt is as follows:
TOTALS $ 25,697.613 $ 14.883,285 $ 74,029,085 $ 67,966,639 $ 99.726.698 $ 82,649,924 -16.9%
See Note 3.F. 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 2022 -2023 was adopted by the City of Owasso City Council on June 21,
2022 and went into effect on July], 2022. The adopted budget conservatively included a2.1%
increase in sales tax collections. Year -to -date FY 2022 -23 combined sales and use tax collections
are 8.3% higher than FY 2021 -22. The FY 2022 -23 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.cityofowasso.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
Total
Governmental
Business -Type
Percentage
ActivBies
Activities
Total
Change
2021
2022
2021
2022
2021
2022
2021 -2022
Leases
$ 174,924
$ 174,924
100.0%
Accrued absences
2.365,186
2,458,883
178,157
191,359
2,543.343
2,650,242
4.2%
Total OPEB lability
1,646,541
1,500,443
36OX3
328,020
2,006,844
1,828,463
-8.9%
Claims liability
761,459
679,053
155.741
177,147
917.200
856,200
-6.7%
Net pension lability
20,924,427
10,069,982
761,237
21.685,664
10,069,982
-53.6%
Financed purchases
218.529
514,107
218,529
514,107
135.3%
Deposits subject to refund
786,676
839,026
786.676
839.026
6.7%
Notes payable, net
38,288,442
37,025,980
38,288,442
37,025.980
-3.3%
Revenue notes payable
33,280,000
28891,000
33,280,000
28.891.000
-13.2%
TOTALS $ 25,697.613 $ 14.883,285 $ 74,029,085 $ 67,966,639 $ 99.726.698 $ 82,649,924 -16.9%
See Note 3.F. 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 2022 -2023 was adopted by the City of Owasso City Council on June 21,
2022 and went into effect on July], 2022. The adopted budget conservatively included a2.1%
increase in sales tax collections. Year -to -date FY 2022 -23 combined sales and use tax collections
are 8.3% higher than FY 2021 -22. The FY 2022 -23 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.cityofowasso.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
BASIC
FINANCIAL
STATEMENTS
STATEMENT OF NET POSITION
CITY OF OWASSO. OKLAHOMA
June 30, 2022
LIABIMES
Component
1.791.792
rnvwrnmwnf
Accrued payroll labillles
Unit
136,656
852,649
Accrued Interest payable
Economic
434,789 -
Governmental
Business -Type
1,041.508
Development
Unearned revenues
Aclivllies
Activilles
Total
Authority
ASSETS
193.676
263,800 -
Long -fern liabilities, Including net pension lability:
Cash and cash equivalents
$ 46,414,444 $
9,558,605 3
55,973,049 $
9,477
ResNCled cash
13.900,717
13,900,717
Investments
16,347,237
3,366,555
19,713.792
Accounisreceivable, nel of allowance
1,307.039
1,897,099
3,204,138
Coud One receivable, net of allowance
12,643
12,643
Otherrecelvables
175,4)7
37.146
212,563
Internal balances
1242.1321
242,132
Due it= other govemmenls
6.717,739
6,717.739
Prepaid llems
47,992
9,062
57.054
Invenlary
49,SU0
49,500
Net pension asset
7,049,737
472.445
7.522,182
Land held far resale
275,000
275,000
Capital assets:
2,756.777
Capital projects
27,922204
Land and construction In progress
60,063,006
22,529.334
82592,340
Othercopllalassets. net of depreciation
110.143.385
62.433.525
172.576,910
TOTALNUPO5MON $
TOTAL ASSETS
248.311.507
114.496,120
362,807627
9.477
DEFERRED OUTFLOWS OF RESOURCES
Defamed outflows - OPEB
96.294
20,138
116,432
Deferred oulflews- pension
7.724.305
455.959
8.180,264
TOTAL DEFERRED OUTFLOWS OF RE SOURCES
7.820.599
476.097
8.296.696
LIABIMES
Accounts payable
1.791.792
2,895,764
4,687,556 -
Accrued payroll labillles
713,993
136,656
852,649 -
Accrued Interest payable
434,789
434,789 -
Contracts and refainage, payable
220 ,900
1,041.508
1,262,408
Unearned revenues
1.126.661
70,371
1,197,032
Otherriabi6lies
70,124
193.676
263,800
Long -fern liabilities, Including net pension lability:
Due wifNn one year
1,531,295
6.642.880
8,174,175
Due in more fhan one year
13351,990
61.323.759
74.675,749
TOTALLIABIIJTIES
18.806.755
7Z741A03
91.548,158
DEFERRED INFLOWS OF RESOURCES
Deferred gain on debt refunding
179.300
179.300
Deferred inflom -OPEB
525,172
115,906
641,078
Deferredinilaws - pension
15.194.072
869.970
16.064,042
TOTAL DEFERRED INFLOWS OF RESOURCES
15.719,244
1,165,176
16.884.420
NETPOSITION
Net Investment in capital assets
169.810567
53,640.030
198,555,717
Resldcted far.
Debt service
I.715.?A3
1,715,243
Economic development
2062.682
2,062.682 9,477
Pubic safety
7,082,440
7,082,440 -
Public works
2,756,777
2,756.777
Capital projects
27,922204
27,922,204
Other purposes
82.960
82,960
Unresldcfed
11.888.477
114.289.6351
22A93,722
TOTALNUPO5MON $
221,606.107 $
41. 065.638 8
262671.745 $ 9.477
See accompanying notes to the basic financial statements.
Page 1
BALANCE SHEET -- GOVERNMENTAL FUNDS
CRY OF OWASSO, OKLAHOMA
June 30, 2022
Yeon HaK -Penny Capital Other Tolal
General Recapture Tax soles Tax Improvement Governmental Govemmental
Fund Fund Fund Fund Funds Funds
ASSETS
Cash and cash equivalents
$ 9,141,577 $ 11,842,714 $ 6,688,815 $ 8,307,033 $ 7,284,048 $ 43,264,187
Invesimenfs
3.219,678
4,171,021
2355,811
2:925,749
2.565,453
15,237,712
Prepaid items
7,231
10,623
17,854
Receivables:
109,256
111,644
220,90
Accounts receivable, net of allowance
29,640
18,260
1,229.560
1,277,460
Due Ramother funds
37,084
1.153.445
1,190,529
Due from other governments
5,055,733
788,096
727,396
146,514
6.717,739
Coud fines receivable, net of allowance
12,643
12,643
Other receivables
172341
172,341
Land held forresale
275.00
275,000
TOTAL ASSETS $ 17.668.696 $ 16.801,831 $ 9.797.513 $ 12661,227 $ 11.236.198 $ 68,165,465
LIABILITIES, DEFERRED INFLOWS, AND FUND BALANCES
LIABIUMES
Accounts payable $ 204,139
$ 542,276
$ 230,690 $ 502,678 $ 218,547 $ 1,698,330
Accrued payrdl liabilities
211,629
453,441
38,862
703,932
Due to other funds
1,443,03
4,809
79,721
1,527,533
Relainage payable
109,256
111,644
220,90
Unearnedrevenue
31,729
1,094,778
1,126.507
Other Eabiities
70,124
70,124
TOTAL LIABILITIES
1.960,624
651,532
688340
614,322
1:431,908
5.347,326
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue- charges for services
25,635
591,678
617,313
FUND BALANCES
Nonspendable:
Prepaidilems
7,231
10,623
17.854
Land held for resale
275,000
275,000
Restricted for:
Economc development
50
2062;632
2D62,682
Pubic safety
53,364
6,344,565
684,511
7,082,440
PubicwaM1s
2,756,777
2756,777
Capital projects
16,150,299
11,771,905
27,922204
Other
70,756
12204
82,960
Commltled:
Pubicsafety
2.178,384
2,178,384
Starmwater management
3;668,798
3.668,798
Capital projects
595,460
595,460
Assigned:
General government
266,546
266,546
Pubicsafety
2728
2728
Recreation and culture
28,210
28,210
Pubicwoft
7,364
7,364
Capital projects
496,901
496,901
Unsigned
14,756.518
14.756,518
TOTAL FUND BALANCES
15.682,437
16,150:299
9.108.573
12046,905
9,212612
62,20,826
TOTAL UABIUMES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES 17,668,696
$ 16,01,831 $ 9.797.513 $ 12661,227 $ 11,236.198 $ 6B.165,465
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
June 30, 2022
Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position
Total fund balances - governmental funds $ 62,200,826
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 and amortization
of $99,120,811, and net of capital assets of Internal Service Funds of $188,397 170,017,994
Certain assets are not available to pay for current fund liabilities and, therefore, are
either deferred or not reported in the funds:
Accounts receivable 617,313
Net pension asset 7,009,260
Internal service funds are used by management to charge the costs of certain activities,
such as insurance, to individual funds. The assets and liabirifles of the internal service
fund are included in governmental activities in the Statement of Net Position.
Net position of the Internal Service Fund 4,619,991
Infernal service fund intertund balance resulting from net revenues
reported in business -type activities (833,238)
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:
Leases payable
(174,924)
Accrued compensated absences, net of Internal Service Funds of $17,318
(2,441,565)
Total OPEB liability, and related deferred inflows of resources and deferred outflows of resources,
net of Internal Service Funds of $22,727
(1,906,595)
Net pension liability
(10,069,982)
Deferred inflows of resources related to pensions, net of Internal Service Funds of $67,206
(15,126,866)
Deferred outflows of resources related to pensions, net of Internal Service Funds of $30,412
7,693,893
Net position of governmental activities $ 221,606,107
See accompanying notes to the basic financial statements.
Page 4
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
CITY OF OWASSO, OKLAHOMA
For the fiscal year ended June 30, 2022
Excess (deficiency) of revenues
overexpenditures 17,444,370 5.333.337 1.457,715 14299,4131 2,245,258 22,181,267
OTHER FINANCING SOURCES (USES)
Leases las lessee) 119,697 - 3B,792 - 158,489
Transfers in 21,255,003 - 1,084,515 10,334;639 2,058,427 34,732,184
Transfers out (38,627,9111 1951.8301 (39;579,7411
TOTAL OTHER FINANCING SOURCES (USES) (17,2532111 1,123,337 10,334639 1,106,797 (4,688.4681
NET CHANGE IN FUND BALANCES
FUND BALANCES- BEGINNING OF YEAR
FUND BALANCES - END OF YEAR
191,159 5,333,337 2,581,422 6,035226 3.352.055 17,492,799
15,491,278 10,816,962 6,527Ml 6,011,679 5 ,860,557 44,708.027
$ 15,682,437 $ 16,150,299 $ 9,108,573 $ 12,046,905 9,212,612 $ 62,200,826
See accompanying notes to the basic financial statements.
Page 5
Viison
HalWenny
Capital
Other
Total
General
Recapture Tax
Sales Tax
Improvement Governmental
Governmental
Fund
Fund
Fund
Fund
Funds
Funds
REVENUES
Taxes
$ 38,004,992
$ 5,910,907 $ 5,373,737
$ - $
1,137,650
$ 50,427,286
Intergovernmental
3,763,384
14,355
102,450
3,296,481
7,176,670
Charges far services
850,574
4,356,229
5,206,803
Hnes and forfeitures
199,788
1 ,439
200,827
Licenses and permits
422,863
105,982
528,845
Investmenl income
53,700
50,779
32,262
(147,9021
26,434
15,273
Miscellaneous
290,512
117,721
25,582
1,195,887
40.057
1.669.759
TOTAL REVENUES
41585.813
6.079,407
5,445,936
1,150,435
8,963,872
65,225,463
EXPENDITURES
Current:
General government
4,616,789
57,273
4,674.062
Public safety
16,737,038
2,316,196
3,087,904
22,141,138
Community development
879,380
879,380
Culture and recreation
1,493A04
1,493,404
Economic development
203.372
280,388
483.760
Publicmrks
1,432,531
IA43,012
433,617
3,309,160
Capital outlay
778,929
746,070
229,013
5,449,848
2.859432
10,063,292
TOTAL EXPENDITURES
26,141,443
746,070
3,988,221
5,449,848
6,718.614
43.044,196
Excess (deficiency) of revenues
overexpenditures 17,444,370 5.333.337 1.457,715 14299,4131 2,245,258 22,181,267
OTHER FINANCING SOURCES (USES)
Leases las lessee) 119,697 - 3B,792 - 158,489
Transfers in 21,255,003 - 1,084,515 10,334;639 2,058,427 34,732,184
Transfers out (38,627,9111 1951.8301 (39;579,7411
TOTAL OTHER FINANCING SOURCES (USES) (17,2532111 1,123,337 10,334639 1,106,797 (4,688.4681
NET CHANGE IN FUND BALANCES
FUND BALANCES- BEGINNING OF YEAR
FUND BALANCES - END OF YEAR
191,159 5,333,337 2,581,422 6,035226 3.352.055 17,492,799
15,491,278 10,816,962 6,527Ml 6,011,679 5 ,860,557 44,708.027
$ 15,682,437 $ 16,150,299 $ 9,108,573 $ 12,046,905 9,212,612 $ 62,200,826
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, 2022
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 $ 17,492,799
Amounts reported for governmental activities in the Statement of Activities
are different because:
Governmental funds report capital outlays as expenditures,
(158,489)
while governmental activities report depreciation and amortization expense
to allocate those expenditures over the life of the assets:
Capital asset purchases capitalized
10,062,645
Depredation and amortization expense
(8,469,331)
Loss on disposal of capital assets
14.000,7951
Total other post - employment benefit liability, net of Internal service Funds $(2,512)
12,407,481)
Revenues in the Statement of Activities that do not provide current
financial resources are not reported as revenues in the funds:
Contributed assets 2,965,456
Change in deferred inflow related to court bonds 5,690
Change in deferred inflow related to ambulance billings 97,528
3.068,674
Debt proceeds provide current financial resources to governmental funds, but issuing debt
Increases long -term liabilities in the Statement of Net Position.
Leases issued
(158,489)
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:
Leases
15,280
Accrued compensated absences, net of Internal Service Funds $(2,794)
(90,903)
Total other post - employment benefit liability, net of Internal service Funds $(2,512)
(75,194)
Pension (revenues) expenses
2.599,616
2.448,799
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 infernal service fund Is included in governmental activities
In the Statement of Net Position.
Total change in net position of the infernal service fund 879,349
Net revenues of internal service funds reported in business -type activities 1181,9911
697,358
Change in net position of governmental activities $ 21,141,660
See accompanying notes to the basic financial statements.
Page 6
STATEMENT OF NET POSITION -- PROPRIETARY FUNDS
CITY OF OWASSO, OKLAHOMA
Sane 3p 2022
Enlerplse Funds
O.Te, Oe'asso Internal
Public Works Public.. S.M..
AUIForNy / Joday Total FunW
ASSETS
CURRENT ASSETS
Cash and Cash
8.258.109 3
4]8.6]2 $
0.736.781
$ 3.?MWI
Inwslmenh
2190.,516
168.599
3.077.107
1.398.973
Ras6lcted DUST and caul, eaWValenh
13,246277
13,246.277
Accounts recelwble, net of ollowvnee
1.699.382
1.81
37. "5
36}14
36.344
Due from Other ends
IAO2o65
1,41I2..05
9,623
Repold items
I,2D0
11200
39.00]
Inventor,
III1W21519 S
49.500
49.303
DEFERRED OUTFLOWS OF RESOURCES
TOTAL CURRENT ASSETS
27.7856171
734.305
20.519.476
5.459.050
NONCURREMASSETS
72019.367 S
869.657 $ 13.616.224 3 1,825.924
OEFERRED INFLOWS OF RESOURCES
ResMCled rise%
Nelpemlenaval
3.0,060
B1,OIB
461.886
51.036
Land and construction In ryopress
2210601815
160519
22529.334
59.003225
2350.300
62433525
188.391
TOTAL NONCURRENT ASSETS
1].211].348
2.,81.037
86.079.IB5
239.4]]
TOTAL MSE6 $
III1W21519 S
3.526.142 $
114.598.661 $ 5.699.213
DEFERRED OUTFLOWS OF RESOURCES
NONCURRENT LIABILITIES
$ 41.065.606
DBIBRed outtloon -OFIR S
16.141 $ ].753 ;
12894 $ 1.181
Defamed wRbvs -penLm
371.616
)6,809
441.025
38.346
TOTAL DEFERRED OUIFLON50F RESOURCES S
387.757
80.162 3
467.919 S
39.527
JANLIIIES AND NO EMRICH
Revenuenolepayable
34.489.003
24.409.000
CURRENT UABIIITI5
Tdal CITIES labllly
261.91
59.538
323.534
Aaounits p.,M. 3
2 745.928 $ 125,451 3
2,811.379 3
99869
36,162
136.031
12686
Interest payable
434,]89
6D724.B27
504.101
61.12.921
ConlraelS and,.Id.,. payable
1.041.508
Uneamedrevenue
70,331
1.155,904
167.441
26,235
193.676
72019.367 S
869.657 $ 13.616.224 3 1,825.924
OEFERRED INFLOWS OF RESOURCES
STATEMENT OF REVENUES. EXPENSES, AND CHANGES IN NET POSITION -- PROPRIETARY FUNDS
CITY OF OWASSO, OKLAHOMA
For the Fiscal year ended June 30, 2022
OPERATING REVENUES
Charges far services:
Water
Wastewater
Refuse
Recycle
Penaltles /late charges
Golf
Internal service charges for services
Other
OPERATING EXPENSES
Utility billing
Adminlstration
Water
Wastewater treatment plant
Wastewater collection
Refuse colleclions
Recycle center
TIF /economic development
Golf
Claims expense
City garage
Depreciation
Other
TOTAL OPERATING REVENUES
TOTAL OPERATING EXPENSES
OPERATING INCOME )LOSS)
NONOPERATING REVENUES (EXPENSES)
Enterprise Funds
Owosso Owasso Intemal
Public Works Public Golf Sei
Authority Authority Total Funds
$ 7,757,544 $
7.757.544 $
5,810,301
5,810.301
2,557,530
2,557,530
68,845
68,845
209,429
967.304
8,595.219
95.080
550
95.630
39,073
16.498.729
967:854
17.466.583
8.634,292
478,251
1,150,163
1,592.029
4,377.606
4,377.606
1.464.877
1,464,877
935,107
935,107
1245,524
188.646
473,406
1,516.120
5,484.336
672,152
3,197,889
198.108
3.395,997
25,846
39A92.
39.492
13550.961
1.714,228
15265.189
7,774,363
2,947.768
(746.3741
2.201.394
859.929
Investment Income
44,045
246
44,291
19,420
Interest expense
(1,947,1951
TOTAL NONOPERATING REVENUES )EXPENSES)
(1.903.1501
246
11.902.9041
19.420
Net income (loss) before contributions and transfers
1.044,618
)746,128)
298,490
879,349
Capital contribsrlicns
1,231,275
Transfersin- required
32,580,350
Transfers in -other
450,103
1,040,000
1,490.103
transfers out
129,223,4961
(29.223.4961
CHANGE IN NEr POSITION
6.082.850
293.872
6.376.722
879,349
NET POSITION - BEGINNING
NET POSITION - ENDING
31.579.943 2.275.735 33855.678 3.740.642
$ 37,662,793 $ 2.569.607 $. 40.232.400 $ 4,619,991
Change In net position per above 6.376,722
Same amounts reported for business -type activities in the Statement of Activities are different
because the net revenue of certain intemal service funds is reported with business -type activities 181,991
Change in Business -Type Activities Net Position per Government- Wide Financial Statements $ 6,558.713
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, 2022
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers
Payments to suppliers
Payments to employees
Receipts of customer meter deposits
Customer meter deposits refunded or appied
Other receipts (payments)
NET CASH FROM
OPERATING ACTIVITIES
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Transfers from other funds
Transfers to other funds
NET CASH FROM
NONCAPHAL FINANCING ACTIVITIES
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES
Payments on financed purchases
Acquisition and construction of capital assets
Principal pad on capital debt
Interest paid on capital debt
NET CASH FROM CAPITAL AND
RELATED FINANCING ACTIVITIES
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of investments
Investment income received
NET CASH FROM
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 Pubic Golf Service
Authority Authority Total Funds
$ 16,194,572 $ 1,010,735 $ 17,205,307 $ 8,555,043
(5,777,242)
(803,039)
(6,580,281)
(7;297,575;
(3,656,485)
(995,519)
(4,652,004)
(460,528;
215,197
(162,847)
142,394
550
142,944
48,314
6,955,589 (787,2731 6,168,316 845,254
33,030,453 1,040,000 34,070,453
(29,223,4961 (29,223,4961
3,806,957 1,040.000 4,846,957
- (57,942) (57,942) -
(17,992,476) (77,620) (18,070,096) -
(5552,735) - (5,552,735) -
(2,038,8701 (2.038,8701
(25,584,0811 (135,5621 (25,719,643)
(2,128,713) (122,419) (2,251,132) (1,006,294)
44,045 246 44291 19,420
(2,084,6681 f122,1731 (2,206,8411 1986.8741
(16,906,203) (5,008) (16,911,211) (141,620)
39.065,029 483,680 39,548,709 4,113,701
$ 22,158,826 $ 478,672 $ 22,637,498 $ 3,972,081
(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, 2022
RECONCILIATION OF OPERATING INCOME
(LOSS) TO NET CASH FROM
OPERATING ACTIVITIES
Operating income (toss)
Adjustments to reconcile operating Income (loss)
to net cash from operating activities:
Depreciation expense
Change in assets and ItabiGties:
Accounts receivables, net
Other receivables
Inventory
Prepaid
Due from other funds
OPEII
Pension
Accounts payable
Accrued payroll loot tees
Estimated liability for claims
Customer meter deposits payable
Due to other funds
Unearned revenue
Olherliabilities
Accrued compensated absences
NET CASH FROM
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
$ 2,947,768 $
Enterprise Funds
Owasso
Owosso Internal
Public Works
Public Golf Service
Authority
Authority Total Funds
$ 2,947,768 $ (746,374) $ 2,201,394 $ 859,929
3,197,889
198,108
3;395,997
25,846
(140,232)
(37,295)
(26,900)
(2,881)
20,843
1,593
(124,850)
9,241
14,181
2,967
17,148
1,320
(149,129)
(31,297)
(180,426)
(17,957)
889,554
(264,142)
625,412
60,766
12,423
10,029
22,452
2,816
(61,000)
52,350
142,811
70,331
82
104,380
(25,596)
78,784
8,444
4,758
13,202
2,794
$ 6,955,589 787,273 $ 6,168,316 $ 845,254
$ 1,231,275 $- $ 1,231,275 $ -
$ 8,258,109 $ 478,672 $ 8,736,781 $ 3,972,081
13,246,277 - 13,246,277 -
654,440 654,440
$ 22,158,826 478,672 $ 22,637,498 $ 3,972,081
(Concluded)
See accompanying notes to the basic financial statements.
Page 10
NOTES
TO BASIC
FINAN
STATEMENTS
NOTES TO BASIC FINANCIAL STATEMENTS
CITY OF OWASSO, OKLAHOMA
YEAR ENDED JUNE 30, 2022
TABLE OF CONTENTS
Note 7 - 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. Leases
F. Long -Term Debt
G. 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, 2022
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, 2022
T. 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, 2022
I.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:
Malor Fund Brief Descripfion
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 35% of the
revenue and Streets receives 30% of the revenue.
FN Page 4
NOTES TO BASIC FINANCIAL STATEMENTS — Continued
CITY OF OWASSO, OKLAHOMA
YEAR ENDED JUNE 30, 2022
1.111- -Basis of Presentation -- Continued
Nonmaior Funds Brief Description
Ambulance Service Fund Accounts for the revenue received from ambulance
subscriptions and billings. Allocated revenue is 85% 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 12.5% 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 3% 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.
Federal Grants Fund Accounts for large Federal grants received by the City.
Currently, the fund includes revenue and expenses related to
the Coronavirus State and Local Fiscal Recovery Funds
program, a part of the American Rescue Plan Act.
FN Page 5
NOTES TO BASIC FINANCIAL STATEMENTS - Continued
CITY OF OWASSO, OKLAHOMA
YEAR ENDED JUNE 30, 2022
1.B- 4asis of Presentation -- Continued
Capital Project 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:
Major 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.
Nonmajor Funds
Brief Description
Ambulance Capital Fund Accounts for the fifteen percent (15 %) 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 2% 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.
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.
FN Page 6
NOTES TO BASIC FINANCIAL STATEMENTS - Continued
CITY OF OWASSO, OKLAHOMA
YEAR ENDED JUNE 30, 2022
I.B- -Basis of Presentation -- Continued
Proorietary 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:
Enterorise Funds
Funds
Owasso Public Works
Authority
Owasso Public Golf Authority
Internal Service Funds:
Brief Descriotion
Accounts for activities of the public trust in providing water,
wastewater and refuse disposal services to the public.
Accounts for activities of the public trust in providing
recreational golf activities to the public.
Funds Brief Descriotion
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.
Workers' Comp Accounts for the funds reserved for the payment of expenses
Self - Insurance Fund 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 Accounts for the funds reserved for payments of expenses of
Self - Insurance Fund property claims and for collision repairs to City vehicles. The
City carries only liability insurance on City vehicles.
Healthcare Services Accounts for the funds reserved for the payment of expenses
Self- Insurance Fund and administration for healthcare benefits for all City
employees. The Plan is administered by a third -party
administrator.
FN Page 7
NOTES TO BASIC FINANCIAL STATEMENTS— Continued
CITY OF OWASSO, OKLAHOMA
YEAR ENDED JUNE 30, 2022
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.
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 financed purchases are
reported as other financing sources.
FN Page 8
NOTES TO BASIC FINANCIAL STATEMENTS - Continued
CITY OF OWASSO, OKLAHOMA
YEAR ENDED JUNE 30, 2022
1.0 -- Measurement Focus and Basis of Accounting -- Continued
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.
I.D-- Assels, Liabilities, Deferred Outflows /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, use 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 $339,555 for allowance for doubtful accounts.
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 $275,000. 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.
FN Page 9
NOTES TO BASIC FINANCIAL STATEMENTS — Continued
CITY OF OWASSO, OKLAHOMA
YEAR ENDED JUNE 30, 2022
I.D -- Assets, Liabilities, Deferred Outflows /Inflows of Resources, and Net Position /Fund
Balance -- Continued
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. 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, and right -to -use lease assets, the
measurement of which is discussed in note 3.E. 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 and amortization of all exhaustible capital assets are recorded as operating
expenses in the proprietary fund financial statements and allocated expenses in the
government -wide statement of activities, with accumulated depreciation and amortization
reflected in the statement of net position. Depreciation and amortization are provided over the
assets' estimated useful lives using the straight -line method of depreciation. The range of
estimated useful lives by type of asset is as follows:
Buildings 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 and
amortization are 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.
Leases: The City is a lessee for leases of machinery and equipment. The City recognizes a lease
liability and an intangible right -to -use lease asset (lease asset) in the government -wide financial
statements. The City recognizes lease liabilities with an initial, individual value of $5,000 or more.
At the commencement of a lease, the City initially measures the lease liability at the present
value of payments expected to be made during the lease term. Subsequently, the lease liability is
reduced by the principal portion of lease payments made. The lease asset is initially measured as
the initial amount of the lease liability, adjusted for lease payments made at or before the lease
commencement date, plus certain initial direct costs. Subsequently, the lease asset is amortized
on a straight -line basis over its useful Iffe.
FN Page 10
NOTES TO BASIC FINANCIAL STATEMENTS - Continued
CITY OF OWASSO, OKLAHOMA
YEAR ENDED JUNE 30, 2022
1.D -- Assets, Liabilities, Deferred Outflows /Inflows of Resources, and Net Position /Fund
Balance -- Continued
Key estimates and judgments related to leases include how the City determines (1) the discount
rate it uses to discount the expected lease payments to present value, (2) lease term, and (3)
lease payments. The City uses the interest rate charged by the lessor as the discount rate. When
the interest rate charged by the lessor is not provided, the City generally uses its estimated
incremental borrowing rate as the discount rate for leases. The lease term includes the
nonconcellable period of the lease. Lease payments included in the measurement of the lease
liability are composed of fixed payments and purchase option price that the City is reasonably
certain to exercise.
The City monitors changes in circumstances that would require a remeasurement of its lease and
will remeasure the lease asset and liability if certain changes occur that are expected to
significantly affect the amount of the lease liability.
Lease assets are reported with other capital assets and lease liabilities are reported with
long -term debt on the statement of net position.
Long -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, financed purchases 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 some 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
FN Page 11
NOTES TO BASIC FINANCIAL STATEMENTS - Continued
CITY OF OWASSO, OKLAHOMA
YEAR ENDED JUNE 30, 2022
I.D--Assets, Liabilities, Deferred Outflows /Inflows of Resources, and Net Position /Fund
Balance -- Continued
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.
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 111 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
15% 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 assets that
applies to future periods and, cis 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 assets that applies to 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
FN Page 12
NOTES TO BASIC FINANCIAL STATEMENTS - Continued
CITY OF OWASSO, OKLAHOMA
YEAR ENDED JUNE 30, 2022
1.D--Assets, Liabilities, Deferred Oufflows /Inflows of Resources, and Net Position /Fund
Balance -- Continued
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.
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.
FN Page 13
NOTES TO BASIC FINANCIAL STATEMENTS — Continued
CITY OF OWASSO, OKLAHOMA
YEAR ENDED JUNE 30, 2022
1.D -- Assets, Liabilities, Deferred Outflows /Inflows of Resources, and Net Position /Fund
Balance -- Continued
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.
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.
1.E -- Internal 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.
FN Page 14
NOTES TO BASIC FINANCIAL STATEMENTS — Continued
CITY OF OWASSO, OKLAHOMA
YEAR ENDED JUNE 30, 2022
I.E -- Internal and Inferfund Balances and Activities -- Continued
Fund Financial Statements: Interfund activity, if any, within and among the govemmental,
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.
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 To x: 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,
citizens of Owasso voted to increase the 3.50% sales fax to 4.05% effective January 1, 2017 for 7
years. The additional 0.55% 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
4.05% 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 3% 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 3% 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.
FN Page 15
NOTES TO BASIC FINANCIAL STATEMENTS — Continued
CITY OF OWASSO, OKLAHOMA
YEAR ENDED JUNE 30, 2022
1. F-- Revenues, Expenditures, and Expenses -- Continued
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 2022, 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
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.
FN Page 16
NOTES TO BASIC FINANCIAL STATEMENTS - Continued
CITY OF OWASSO, OKLAHOMA
YEAR ENDED JUNE 30, 2022
I.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 some 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 is related to the health benefits for retired employees.
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, 2022.
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.
FN Page 17
NOTES TO BASIC FINANCIAL STATEMENTS - Continued
CITY OF OWASSO, OKLAHOMA
YEAR ENDED JUNE 30, 2022
2.A -- Deposits and Investments Laws and Regulations -- Continued
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.
2.B - -Debt Restrictions and Covenants
General Lona -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, 2022, 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, 2022.
a. Revenue Bond Coverage:
Net operating revenue for
OPWA and OPGA plus
pledged sales tax must
generate an amount
annually equal to 125% of
annual principal and
interest requirements on
the 2002A, 2009B, 2009C,
2011, 2013 SRF OWRB
Note, and 2019 OWRB
Note.
Net revenues available, including sales tax transferred,
amounted to $38,791,372. The annual principal and
interest on the bonds and any subordinate debt
amounted to $7,997,349. Actual coverage was 343 %.
FN Page 18
NOTES TO BASIC FINANCIAL STATEMENTS — Continued
CITY OF OWASSO, OKLAHOMA
YEAR ENDED JUNE 30, 2022
2.0 - -Fund Equity /Net Position Restrictions
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, 2022, the City had no deficit fund balances.
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, 2022:
Deposits
Demand deposits
Petty cash and change funds
Investments
US. Treasury obligations
Certificates of deposit
Money market mutual funds
Investment Maturities
Carrying Credit (in Years)
Value Rating Less than 1 1 - 5
$ 56,799,972
n/a
$ n/a $ n/a
12,103
n/a
n/a n/a
14,966,538
AA+
14,966,538 -
4,747,254
n/a
4,747,254 -
13,061,691
AAAm
13,061,691 -
Total Cash and Cash Equivalents and Investments _j q9,587,558 $ 32,775,483 $
Reconciliation to Statement of Net Position
Cash and cash equivalents $ 55,973,049
Restricted cash 13,900,717
Investments 19,713,792
89,587,558
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 money market mutual fund 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. The U.S. Treasury
obligations are measured at 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
FN Page 19
NOTES TO BASIC FINANCIAL STATEMENTS — Continued
CITY OF OWASSO, OKLAHOMA
YEAR ENDED JUNE 30, 2022
3.A-- Deposit and Investment Risks -- Confinued
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, 2022, the City's investments were registered in
the City's name and held by a counter -party.
As noted in the schedule of deposits and investments on the previous page, at June 30, 2022, the
City's investment in U.S. Treasury obligations was rated AA+ by Standard and Poor's, and the
City's investment in money market mutual funds 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 5% are disclosed). Investments issued or explicitly guaranteed by the U.S.
government and investments in mutual funds, external investment pools, and other pooled
investments are excluded from this consideration. At June 30, 2022, 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, 2022, 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 l)
(level 2)
(Level 3) Fair Value
U.S. Treasury Obligations $ - $ 14,966,538 $ - $ 14,966,538
Certificates of Deposit - 4,747,254 - 4,747,254
$ $ 19,713,792 $ $ 19713,792
FN Page 20
NOTES TO BASIC FINANCIAL STATEMENTS— Continued
CITY OF OWASSO, OKLAHOMA
YEAR ENDED JUNE 30, 2022
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 100% of the amount that is not
federally insured. As of June 30, 2022, 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 100% 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 $62,039,093 at June 30, 2022. The difference
between the carrying amount of deposits and the bank balance is due to outstanding checks
and deposits. As of June 30, 2022, 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 $9,477 of the discretely presented component
unit were insured with Federal Deposit Insurance Corporation Insurance. Total carrying value of
the deposits was $9,477.
FN Page 21
NOTES TO BASIC FINANCIAL STATEMENTS — Continued
CITY OF OWASSO, OKLAHOMA
YEAR ENDED JUNE 30, 2022
3.8 -- Accounts Receivable
Accounts receivable outstanding at June 30, 2022 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 receivable, net
3.C-- Restricted Assets
Governmental Activities
214,624 1 18,260 1 1,229,560 32,654 1,495.098
Business -Tvoe Activities
Owasso
Half -Penny
Other
Internal
Public Works
General
Sales Tax
Government
Service
Authority
Fund
Fund
Funds
Funds
Total
$ 62,821
147,880
352,198
24,450
203,100
1,363,695
11
18,260
32,654
50,925
(361,7301
(400,0561
(761,7861
214,624 1 18,260 1 1,229,560 32,654 1,495.098
Business -Tvoe Activities
Owasso
Owasso
Internal
Public Works
Public Golf
Service
Authority
Authority
Funds
Total
$ 2,626,048
36,344
8,519
44,863
(736,666)
1,889,382
$ 36,344
8,519
1,934,245
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, 2022
3.C-- Restricted Assets-- Continued
The restricted assets as of June 30, 2022 were as follows
Restricted Cash and Cash Equivalents Amount
20098 Revenue Note 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
$ 367,499
Debt Service Account
126,873
Debt Service Account
97,210
Debt Service Account
105,369
Debt Service Account
234,086
Debt Service Account
103,616
Construction Service Account
7,350,332
Debt Service Account
584,779
Construction Service Account
3,996,117
Debt Service Account
95,810
839,026
TOTAL RESTRICTED ASSETS $ 13,900,717
FN Page 23
NOTES TO BASIC FINANCIAL STATEMENTS - Continued
CITY OF OWASSO, OKLAHOMA
YEAR ENDED JUNE 30, 2022
3.0-- Capital Assets
Capital asset activity for the fiscal year ended June 30, 2022 was as follows:
Amortized:
Right -to-use leased machinery and equipment 190.204 190.204
Less: accumulated amortization:
Right -to-use leased machinery and equipment 145,5671 145.5671
Net amortized assets
Additions/
Reductions/
144,637
Governmental acWfies capital assets, net
June 30, 2021
Transfers
Transfers
June 30, 2022
Governmental activitles:
Bustness-type activities:
Non - depreciable:
Non - depreciable:
Land
$ 18.749.066
$ (4,000,794)
$ 14,748.272
Construction in progress
38,799.522
9.098.342
f2.5B3.1301
45314,734
Total non - depreciable assets at hstorical cast
57,548,588
9,098,342
16.583.9241
60.063.006
Depreciable:
f5393091
22.529334
Depreciable:
Buildings
28,144,090
13.554
28,157,644
Improvements
28.567.258
681,505
29,248.763
Machinery and equipment
19.311546
863.157
(1,041,093)
19,133,610
Infrastructure
128,055,289
4.796,182
Infrastructure
132,851,471
Total depreciable assets at hlstatical cost
204 .078.183
6.354.398
11,04L0931
2209391,488
Lesr, accumulated depreciation:
(225,9011
121,520,563
Less: accumulated depreciation:
Buildings
(6,720,6181
11.176.708)
(7.897.326)
Improvements
(9520.450)
(1395,110)
(10;915,560)
Machinery and equipment
(12:583,504)
(1,4113691
1,041,093
172.953.780)
Infrastructure
(63,159,652)
14.466;4221
(67,626,0741
Total accumulated depreciation
191,984.2241
18,449.6091
1.041.093
199.392,7401
Net depreciable assets
112,093,959
(2095.2111
Net depreciable assets
109,998.748
Amortized:
Right -to-use leased machinery and equipment 190.204 190.204
Less: accumulated amortization:
Right -to-use leased machinery and equipment 145,5671 145.5671
Net amortized assets
144,637
144,637
Governmental acWfies capital assets, net
$ 169,642547
$ 7.147.768
$ f6.5B3.9241
$ 170.206391
Bustness-type activities:
Non - depreciable:
Land
$ 322.519
$ 100
$ 322619
Construction in progress
4.091548
18,654.476
(539.3091
22,206,715
Total non - depreclable assets of historical cost
4,414.067
18.654,576
f5393091
22.529334
Depreciable:
Buildings
2,811,746
Improvements
3.897.921
76,177
3,974,098
Machinery and equipment
6.646,261
586,576
(225,9011
7,006,936
Infrastructure
105.975,592
1.752.197
107,727.783
Total depreciable assets at historical cost
119,331,52)
2,414,944
(225,9011
121,520,563
Less: accumulated depreciation:
Buildings
(2,007,256)
(44,794)
(2,052,050)
Improvements
(2,498.667)
1115.)421
(2,613,809)
Machinery and equipment
(3,612.474)
1455,4221
213.232
(3,854.664)
Infrastructure
(47.785.8761
12,780,6391
150.566,5151
Total accumulated deprecation
(55,9042731
(3.395.9971
213.232
(59,087,0381
Net depreciable assets
63,427247
(981,0531
112.6691
62.433.525
Business -type activities capital assets, net
$ 67,841314
$ 17,673.523
$ f551.9781
$ 84,962,959
FN Page 24
NOTES TO BASIC FINANCIAL STATEMENTS — Continued
CITY OF OWASSO, OKLAHOMA
YEAR ENDED JUNE 30, 2022
3.D-- Capital Assets -- Continued
Depreciation expense was charged to functions in the statement of activities as follows:
Depreciation expense charaed to governmental activities
General government
$ 539,811
Public safety
2,407,430
Community development
11,805
Culture and recreation
527,993
Public works
4,936,724
Sub -total
8,423,763
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
25,846
Total Governmental Activities Depreciation Expense
$8,449,609
Amortization expense charged to governmental activities:
General government
$ 45,567
Depreciation expense charged to business -type activities:
Water
$ 1,069,028
Refuse
203,806
Wastewater
1,916,437
Recycle center
8,618
Golf course
198,108
Total Business -Type Activities Depreciation Expense 3,395,997
Financed Purchases
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 financed
purchase with the addition of machinery in the amount of $284,915, an interest rate of 3.69% 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 $193,335 as of June 30, 2022.
FN Page 25
NOTES TO BASIC FINANCIAL STATEMENTS - Continued
CITY OF OWASSO, OKLAHOMA
YEAR ENDED JUNE 30, 2022
3.0 -- Capital Assets -- Continued
The minimum lease payments due under the lease are as follows:
On June 1, 2022, OPGA entered into a lease- purchase agreement with Yamaha Motor Finance
Corporation for equipment to be used at the Bailey Ranch Golf Course. The lease was recorded
as a financed purchase with the addition of machinery in the amount of $353,520, an interest rate
of 4.20% and a term of 48 months. Payments for principal and interest are due monthly. The net
book value of the assets acquired under this agreement is $346,155 as of June 30, 2022.
The minimum lease payments due under the lease are as follows:
Principal
Interest
Total
2023
$ 57,432
$ 5,056
$ 62,488
2024
59,588
2,901
62,489
2025
46,154
713
46,867
Total
$ 163,174
$ 8,670
$ 171,844
On June 1, 2022, OPGA entered into a lease- purchase agreement with Yamaha Motor Finance
Corporation for equipment to be used at the Bailey Ranch Golf Course. The lease was recorded
as a financed purchase with the addition of machinery in the amount of $353,520, an interest rate
of 4.20% and a term of 48 months. Payments for principal and interest are due monthly. The net
book value of the assets acquired under this agreement is $346,155 as of June 30, 2022.
The minimum lease payments due under the lease are as follows:
FN Page 26
Principal
Interest
Total
2023
$ 31,739
$ 13,751
$ 45,490
2024
33,061
12,429
45,490
2025
34,437
11,053
45,490
2026
251,696
8,873
260,569
Total
$ 350,933
$ 46,106
$ 397,039
FN Page 26
NOTES TO BASIC FINANCIAL STATEMENTS - Continued
CITY OF OWASSO, OKLAHOMA
YEAR ENDED JUNE 30, 2022
3.- Leases
The City, as a lessee, has entered into lease agreements involving machinery and equipment as
summarized below:
Lease Obliaations Pavable 2022
In fiscal year 2020, the City entered into one 60 -month and one 48 -month lease as
a lessee for the use of copiers. Initial lease liabilities were recorded in the amount
of $9,934. The City is required to make monthly fixed payments of $160 and $106.
The leases have interest rates of 3.69% and 4.20 %. The value of the right -to -use
assets as of June 30, 2022 is $7,005 with accumulated amortization of $8,783. $ 7,063
In fiscal year 2021, the City entered into a 60 -month lease as a lessee for the use
of a copier. An initial lease liability was recorded in the amount of $21,781. The
City is required to make monthly fixed payments of $424. The lease has an interest
rate of 3.69 %. The value of the right -to -use asset as of June 30, 2022 is $17,142 with
accumulated amortization of $4,640. 17,424
In fiscal year 2022, the City entered into seven 48 -month leases as a lessee for the
use of vehicles. Initial lease liabilities were recorded in the amount of $130,065.
The City is required to make monthly fixed payments ranging from $327 - $525. The
leases have interest rates ranging from 4.44 % - 6.23 %. The value of the right -to -use
assets as of June 30, 2022 is $97,549 with accumulated amortization of $32,516. 125,661
In fiscal year 2022, the City entered into a 63 -month lease as a lessee for the use
of a postage machine. An initial lease liability was recorded in the amount of
$21,174. The City is required to make monthly fixed payments of $370. The lease
has an interest rate of 3.69 %. The value of the right -to -use asset as of June 30, 2022
is $17,141 with accumulated amortization of $4,033. 18,081
In fiscal year 2022, the City entered into a 60 -month lease as a lessee for the use
of a copier. An initial lease liability was recorded in the amount of $7,250. The City
is required to make monthly fixed payments of $133. The lease has an interest rate
of 3.69 %. The value of the right -to -use asset as of June 30, 2022 is $5,800 With
accumulated amortization of $1,450. 6,695
TOTAL LEASE OBLIGATIONS PAYABLE $ 174,924
FN Page 27
NOTES TO BASIC FINANCIAL STATEMENTS - Continued
CITY OF OWASSO, OKLAHOMA
YEAR ENDED JUNE 30, 2022
3. Leases -- Conlin ued
Fiscal Year
2024
2025
2026
Principal and Interest Requirements to Maturity
Governmental Activities
42,884 $
7,685 $
50,569
44,292
5,532
49,824
45,824
3,307
49,131
39,174
1,035
40,209
2027 2,750 28 2,778
Total $ 174,924 $ 17,587 $ 192,511
31- -Long Term Debt
Business -Type Activities Lona -Term Debt: As of June 30, 2022, the long -term debt payable from
enterprise fund resources consisted of the following:
Notes Payable:
2002A OWRB Note Payable, dated December 30, 2002, original amount of $886A18 With an administration
fee of 0.5 %, semiannual Installments of principal and adrdnistrafion fee, final maturity August 15, 2022
$ 22,161
20098 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 adminsfrafion fee: final maturity September 15.2031
5561,814
2009C OWRB Note Payable, dated December 8, 2009, original amount
of $4,510,000 Wlth an Interest rate of 1.75% plus administration fee of 0.5 %. semiannual
Installments of principal, Interest and admdratration tee: final maturity March 15, 2031
2,217.470
2011 Interim Series OWRB Note Payable, dated November 17. 2011, original amount
of $3.115.000 With an Interest rate of 2.11% plus administration fee of 0.5 %; semiannual
Installments of principal, Interest and adrrimtmtion fee; final maturity September 15,2032
1,572223
2013 Series CWSRF Promissory Nate, 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
1,157,020
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
27,605,000
Total Notes Payable
$ 34.335.688
Current portion
$ 1.611,656
Norl- cunent portion
32.724,032
Net notes payable
$ 34,335;688
FN Page 28
NOTES TO BASIC FINANCIAL STATEMENTS - Continued
CITY OF OWASSO, OKLAHOMA
YEAR ENDED JUNE 30, 2022
3.F- -Long Term Debt -- Continued
Revenue Notes Payable:
Series 2016 Sales Tax Revenue Note. Payable dated November 15, 2016, Issued by Owasso Public
Balance
Works Authority, secured by pledge of sales tax revenues only, original amount of
June 30, 2021
$21,265,000 with an annual interest rate of 1.94 %, semiannual principal payments varying from
Deductions
$275,000 to $1,395,000 due each June 1 and December 7 with final maturity December 1, 2026
$ 12,050,000
Series 2078 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 I with final maturity June 1, 2028
6,630,000
Series 2020 Sales Tax Revenue Note Payable dated April 30, 2020, Issued by Owasso Public Works Authority,
$ 42,884
secured by pledge of sales tax revenues only, original amount of $12.000.000 with an annual interest
201,372
rate of 2.15 %, semiannual principal varying from $425,000 to $560,000 due each June 1 and
1,500,443
December 1 with a final maturity date of June 1, 2032
10,211,000
Total Revenue Notes Payable
$ 28,891.000
Current portion
$ 4,482.000
Noncurrent portion
24,409.000
Net revenue notes payable
$ 28.891.000
Changes in Lono -Term Debt: The following is a summary of changes in long -term debt for the
year ended June 30, 2022:
Governmental Activities:
Leases - direct obligation
Total OPEB liability
Net pension liability
Risk management claims liability
Accrued compensated absences
Total Governmental Activities
Business -Type Activities:
Financed purchases - direct
obligation
Deposits subject to refund
Notes payable
Plus premium on notes payable
Revenue notes payable
Total OPEB liability
Net pension liability
Risk management claims liabllity
Accrued compensated absences
Total Business -Type Activities
Balance
Balance
Due Within
June 30, 2021
Additions
Deductions
June 30, 2022
one year
$ 190,204
$ (15,280)
$ 174,924
$ 42,884
1,646,541
201,372
(347,470)
1,500,443
20,924,427
14,816,363
(25,670,808)
10,069,982
761,459
4,319,320
(4,401,726)
679,053
332,736
2,365,186
1,847,763
(1,754,0661
2,458,883
1,155,675
$ 25,697,613
$ 21,375,022
$ (32,189,3501
$ 14,883,285
$1,531,295
$ 218,529
$ 353,520
$ (57,942)
$ 514,107
$ 89,171
786,676
215,197
(162,847)
839,026
184,586
35,499,422
(1,163,734)
34,335,688
1,611,656
2,789,020
(98,728)
2,690,292
98,726
33,280,000
(4,389,000)
28,891,000
4,482,000
360,303
44,497
(76,780)
328,020
761,237
801,698
(1,562,935)
155,741
1,160,830
(1,139,424)
177,147
86,802
178,157
176,954
(163,7521
191,359
89,939
$ 74,029,085 1 2,752,696 $ (8,815,1421 $ 67,966,639 6,642,880
FN Page 29
NOTES TO BASIC FINANCIAL STATEMENTS - Continued
CITY OF OWASSO, OKLAHOMA
YEAR ENDED JUNE 30, 2022
31- -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. Leases are generally
liquidated by the general fund and the half penny sales tax fund.
Debt Service Requirements to Maturity - Primary Government: The annual debt service
requirements to maturity for long -term debt as of June 30, 2022 are as follows:
Pledged Revenues: The City has pledged proceeds from a 2% sales tax, along with revenues
from water, wastewater, sanitation, and golf, to repay the 2002A, 2009B, 20090, 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 $52,214,269. Pledged revenue received in the current year totaled $38,791,372. Debt
service payments of $2,525,774, for the current year were 7% of pledged revenue.
The City has also pledged proceeds from a I% 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
$31,321,461. Pledged revenue received in the current year totaled $10,662,395. Debt service
payments of $5,091,474 for the current year were 48% of pledged revenue.
FN Page 30
Business -Type
Activities
Revenue Note Payable
Notes Payable
Year Ending June 30,
Principal
Interest
Principal
Interest
2023
$ 4,482,000
$ 614,774
$ 1,611,656
$ 1,288,919
2024
4,581,000
516,948
1,634,732
1,239,832
2025
4,681,000
416,984
1,687,105
1,185,555
2026
4,784,000
314,812
1,744,693
1,127,616
2027
3,479,000
210,357
1,496,891
1,069,241
2028 -2032
6,884,000
356,586
7,730,491
4,476,601
2033 -2037
3,920,120
3,364,099
2038 -2042
4,710,000
2,468,678
2043 -2047
5,760,000
1,409,743
2048 -2050
4,040,000
248,297
$ 28,891,000
$ 2,430,461
$ 34,335,688
Pledged Revenues: The City has pledged proceeds from a 2% sales tax, along with revenues
from water, wastewater, sanitation, and golf, to repay the 2002A, 2009B, 20090, 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 $52,214,269. Pledged revenue received in the current year totaled $38,791,372. Debt
service payments of $2,525,774, for the current year were 7% of pledged revenue.
The City has also pledged proceeds from a I% 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
$31,321,461. Pledged revenue received in the current year totaled $10,662,395. Debt service
payments of $5,091,474 for the current year were 48% of pledged revenue.
FN Page 30
NOTES TO BASIC FINANCIAL STATEMENTS - Continued
CITY OF OWASSO, OKLAHOMA
YEAR ENDED JUNE 30, 2022
3.G-- Interfund Balances and Activities
Due to /from balances at June 30, 2022 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. Inferfund receivables and payables at June 30, 2022 consist of the following:
Enterprise Funds:
Major funds
OPWA 1,482,885 1,441,502 - 41,383
Total Enterprise Funds 1,482,885 1,441,502 - 41,383
Internal Service Funds
Due From
City Garage
9,623 1,501
4,809
Half -Penny
NonmajorGovt'l.
9,623 1,501
Due To
Total
General Fund Sales Tax Fund
Funds
OPWA
Governmental Funds:
Major funds
General Fund
$ 37,084
Capital improvement fund
1,153,445
Total Governmental Funds
1,190,529
77 -
37,084
1,153,445
Enterprise Funds:
Major funds
OPWA 1,482,885 1,441,502 - 41,383
Total Enterprise Funds 1,482,885 1,441,502 - 41,383
Internal Service Funds
City Garage
9,623 1,501
4,809
1,254 2,059
Total Internal Service Funds
9,623 1,501
4,809
1,254 2,059
Total Primary Government
$ 2,683,037 $ 1,443,003 $ 4,809 $ 79,721 $ 1,155,504
FN Page 31
NOTES TO BASIC FINANCIAL STATEMENTS — Continued
CITY OF OWASSO, OKLAHOMA
YEAR ENDED JUNE 30, 2022
3.G-- 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 improvement 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, 2022 consist of the following:
Transfer To
Total
Transfer From
Nonmajor Govt'I
General Fund Funds
OPWA
Governmental Funds:
Employee Retirement System — Defined
Benefit Plan
Major Funds
Cost- Sharing Multiple Employers' Public
System
Employee Retirement System — Defined
General Fund
$ 21,255,003
21,255,003
Half -Penny Sales Tax Fund
1,084,515
1,084,515
Capital Improvement Fund
10,334,639
2,366,146 -
7,968,493
Nonmajor Govt'I Funds
2,058,627
Total Government Funds
34,732,784
5,509,288 -
29,223,496
Enterprise Funds:
Major Funds
OPWA 33,030,453 32,078,623 951,830
OPGA 1,040,000 1,040,000
Total Enterprise Funds 34,070,453 33,118,623 951,830
Total Primary Government $ 68,803,237 $ 38,627,911 $ 951,830 $ 29,223,496
NOTE 4-- OTHER NOTES
4.A -- Employee Pension Plans
The City participates in four employee pension systems as follows:
Name of Plan/System
Type of Plan
Oklahoma Firefighters Pension and Retirement
Cost - Sharing Multiple Employers' Public
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 32
NOTES TO BASIC FINANCIAL STATEMENTS — Continued
CITY OF OWASSO, OKLAHOMA
YEAR ENDED JUNE 30, 2022
4.A-- Employee Pension Plans -- Continued
Net Pension
Deferred OulBows
Oeteed lnfbws
Asset(IlaWlityl
Pension Expense
Firefighters Pension System $
5,910,544
$ 18594,7061
$ (10.069.982)
$ 1,419,731
Police Pension System
761,686
(4,602,4571
5.961.488
(SB6,733)
Odahoma Municipal Retirement Fund Plan
1,508,034
(2,866,8791
1.560,694
251.700
Totals $
8,187.54
$ (16.064,0421
$ 12.547,0001
$ 1.084.698
Reconciliation to govemment -wide tinaneiol statements:
Govemmenial $ 7,724,305
$ (15,194)072)
$ (3.020,245)
$ 1,008,597
Business -type
455.959
1869,970)
472.445
76.101
Total defend autliaws of resources $ 8.180,264
$ 116.064.0421
$ 12 .547,8001
$ 1,084,698
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 50% 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 55% 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 11 years or more of service.
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 50% 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 2.5% of final
average monthly compensation, based on the most recent 30 months, per year of service, Wth 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 50% 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.
FN Page 33
NOTES TO BASIC FINANCIAL STATEMENTS - Continued
CITY OF OWASSO, OKLAHOMA
YEAR ENDED JUNE 30, 2022
4.A-- Employee Pension Plans -- Continued
Oklahoma Firefighters Pension & Retirement System ( OFPRS) -- Continued
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 9% of their annual pay. Participating cities are required to contribute 14%
of the employees' annual pay. FY 2022 contributions to the pension plan from the City were
$720,892 and are reflected as deferred outflows of resources. The State of Oklahoma also made
on- behalf contributions to OFPRS in the amount of $1,607,788, 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, 2022, the City reported a liability of $10,069,982 for its proportionate share of
the OFPRS net pension liability. The net pension liability was measured as of June 30, 2021, and the
total pension liability used to calculate the net pension liability was determined by an actuarial
valuation as of July 1, 2021. 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, 2021. Based upon this information, the
City's proportion was 1.529076% (up from 1.446865% in FY 2021).
For the year ended June 30, 2022, the City recognized a pension expense of $1,419,731. At
June 30, 2022, 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 dole
Total
Deferred Outflows Deferred Inflows
of Resources of Resources
3,652.155 $ (176,8461
(8,00.5,205)
1,537,497 (189,303)
(223,352)
720,892
$ 5,910,544
FN Page 34
NOTES TO BASIC FINANCIAL STATEMENTS - Continued
CITY OF OWASSO, OKLAHOMA
YEAR ENDED JUNE 30, 2022
4.A-- Employee Pension Plans -- Continued
Oklahoma Firefighters Pension & Retirement System (OFPRS) -- Continued
The $720,892 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, 2023. 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:
2023
Amortization
Expense
$ (294,995)
2024
(487,455)
2025
(811,558)
2026
(1,811,046)
Total
Actuarial Assumptions - The total pension liability was determined by an actuarial valuation as of
July 1, 2021, using the following actuarial assumptions, applied to all prior periods included in the
measurement:
Inflation: 2.75%
Salary increases: 2.75% to 10.5%
Investment rate of return: 7.5% 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 Scale
MP -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, 2021 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, 2021,
are summarized in the following table:
FN Page 35
NOTES TO BASIC FINANCIAL STATEMENTS — Continued
CITY OF OWASSO, OKLAHOMA
YEAR ENDED JUNE 30, 2022
Oklahoma Firefighters Pension & Retirement System ( OFPRS) -- Continued
Discount Rate - The discount rate used to measure the total pension liability was 7.5 %. The
projection of cash flows used to determine the discount rate assumed that contributions from
plan members will be made at the current contribution rate and that contributions from
employers will be made at contractually required rates, determined by State 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 36% of
the statewide insurance premium tax. The State of Oklahoma recently passed legislation that
changed the allocation to 25.2% as of September 1, 2020; 36.0% as of July 1, 2021; 37.8% as of July
1, 2022; and 36.057. as of July 1, 2027. In addition, OFPRS is scheduled to receive $40,625 each year
from July 1, 2020 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 7.5 %, as well as what the
Plan's net pension liability would be if it were calculated using Cl discount rate that is
1- percentage point lower (6.5 %) or 1- percentage -point higher (8.5 %) than the current rate:
I% Decrease current Discount I% Increase
(6.5 %) Rate (7.5 %) (8.5 %)
Employer's net pension liability $ (15,736,433) $ (10,069,982) $ (5,326,004)
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
atwww.ok.gov/fr)rs.
FN Page 36
Target
Long -Term Expected
Asset Class
Allocation
Real Rate of Return
Fixed income
20%
3.53%
Domestic equity
42%
5.73%
International equity
15%
8.50%
Real estate
10%
7.97%
Other assets
13%
5.67%
Discount Rate - The discount rate used to measure the total pension liability was 7.5 %. The
projection of cash flows used to determine the discount rate assumed that contributions from
plan members will be made at the current contribution rate and that contributions from
employers will be made at contractually required rates, determined by State 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 36% of
the statewide insurance premium tax. The State of Oklahoma recently passed legislation that
changed the allocation to 25.2% as of September 1, 2020; 36.0% as of July 1, 2021; 37.8% as of July
1, 2022; and 36.057. as of July 1, 2027. In addition, OFPRS is scheduled to receive $40,625 each year
from July 1, 2020 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 7.5 %, as well as what the
Plan's net pension liability would be if it were calculated using Cl discount rate that is
1- percentage point lower (6.5 %) or 1- percentage -point higher (8.5 %) than the current rate:
I% Decrease current Discount I% Increase
(6.5 %) Rate (7.5 %) (8.5 %)
Employer's net pension liability $ (15,736,433) $ (10,069,982) $ (5,326,004)
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
atwww.ok.gov/fr)rs.
FN Page 36
NOTES TO BASIC FINANCIAL STATEMENTS - Continued
CITY OF OWASSO, OKLAHOMA
YEAR ENDED JUNE 30, 2022
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 opprs.ok.aov.
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 2.5% 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 2.5%
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 2.5% 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 37
NOTES TO BASIC FINANCIAL STATEMENTS - Continued
CITY OF OWASSO, OKLAHOMA
YEAR ENDED JUNE 30, 2022
4.A-- Employee Pension Plans -- Continued
Okahoma 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 8% of their annual pay. Municipalities are required to contribute 13% of
the employees' annual pay. FY 2022 contributions to the pension plan from the City were
$583,421 and are reflected as deferred outflows of resources. The State of Oklahoma also made
on- behalf contributions to OPPRS in the amount of $497,686 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 Assets, Pension Expense, and Deferred Inflows and Outflows of Resources Related to
Pensions - At June 30, 2022, the City reported an asset of $5,961,488 for its proportionate share of
the OPPRS net pension asset. The net pension asset was measured as of June 30, 2021, and the
total pension liability used to calculate the net pension asset was determined by an actuarial
valuation as of July 1, 2021. The City's proportion of the net pension asset 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, 2021. Based upon this information, the City's
proportion was 1.2427% (up from 1.1739% in FY 2021).
For the year ended June 30, 2022, the City recognized a pension expense of $(586,733). At
June 30, 2022, 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 Deferred Inflows
of Resources
of Resources
$ 85,593
$ (235,302)
(4,348,699)
2,017
118,456)
90,655
583,421
$ 761,686
$ (4,602,457)
FN Page 38
NOTES TO BASIC FINANCIAL STATEMENTS —Continued
CITY OF OWASSO, OKLAHOMA
YEAR ENDED JUNE 30, 2022
4.A-- Employee Pension Plans -- Continued
Oklahoma Police Pension and Retirement System (OPPRS) -- Continued
The $583,421 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 asset in the year ended June 30, 2023. 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:
2023
2024
2025
2026
2027
Total
Amortization
Expense
$ (997,357)
(876,323)
(1,106,992)
(1,453,130)
9,610
$ (4,424,192)
Actuarial Assumptions - The total pension liability was determined by an actuarial valuation as of
July 1, 2021, using the following actuarial assumptions, applied to all prior periods included in the
measurement:
Inflation: 2.75%
Salary increases: 3.5% to 12.0%
Investment rate of return: 7.5% net of pension plan investment expense
Mortality Rates: Active employees (pre - retirement): RP -2000 Combined
Blue Collor 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, 2021 valuation were based on the results of an
actuarial experience study for the period July 1, 2012 to June 30, 2017.
FN Page 39
NOTES TO BASIC FINANCIAL STATEMENTS — Continued
CITY OF OWASSO, OKLAHOMA
YEAR ENDED JUNE 30, 2022
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, 2021,
are summarized in the following table:
Discount Rate - The discount rate used to measure the total pension liability was 7.5 %. The
projection of cash flows used to determine the discount rate assumed that contributions from
plan members will be made at the current contribution rate and that contributions from
employers will be made at contractually required rates, determined by State statutes. Projected
cash flows also assume the State of Oklahoma will continue contributing 14% 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 40
Target
Long -Term Expected
Asset Class
Allocation
Real Rate of Return
Fixed income
20%
3.22%
Domestic equity
35%
4.55%
International equity
15%
8.507o
Real estate
15%
7.97%
Private equity
15%
9.36%
Discount Rate - The discount rate used to measure the total pension liability was 7.5 %. The
projection of cash flows used to determine the discount rate assumed that contributions from
plan members will be made at the current contribution rate and that contributions from
employers will be made at contractually required rates, determined by State statutes. Projected
cash flows also assume the State of Oklahoma will continue contributing 14% 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 40
NOTES TO BASIC FINANCIAL STATEMENTS — Continued
CITY OF OWASSO, OKLAHOMA
YEAR ENDED JUNE 30, 2022
4.A-- Employee Pension Plans -- Continued
Oklahoma Police Pension and Retirement System (OP PRS) -- Continued
Sensitivity of the Net Pension Asset to Changes in the Discount Rate - The following presents the
net pension asset of the City calculated using the discount rate of 7.5 %, as well as what the Plan's
net pension asset would be if it were calculated using a discount rate that is 1- percentage point
lower (6.5 %) or 1- percentage -point higher (8.5 %) than the current rate:
1 % Decrease Current Discount 1 % Increase
(6.5 %) Rate (7.5 %) (8.5 %)
Employer's net pension asset $ 2,235,738 $ 5,961,488 $ 9,111,888
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 or)ors.ok.00v.
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 Plan 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, 1001 NW 63rd Street, Suite 260, Oklahoma City, Oklahoma 73116.
Summary of Significant Accounting Policies - For purposes of measuring the net pension asset,
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 plan's fiduciary net position is available in the separately
issued OkMRF financial report.
FN Page 41
NOTES TO BASIC FINANCIAL STATEMENTS — Continued
CITY OF OWASSO, OKLAHOMA
YEAR ENDED JUNE 30, 2022
4.A -- Employee Pension Plans -- Continued
Oklahoma Municipal Retirement Fund Defined Benefit Plan -- Continued
Eligibility 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 5years 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 42
NOTES TO BASIC FINANCIAL STATEMENTS — Continued
CITY OF OWASSO, OKLAHOMA
YEAR ENDED JUNE 30, 2022
4.A-- Employee Pension Plans -- Continued
Oklahoma Municipal Retirement Fund Defined Benefit Plan -- Continued
Emplovees Covered by Benefit Terms -
Active Participants
157
Retired Participants in Payment Status
37
Survivors in Payment Stafus
6
Disabled Participants
3
Deferred Vested Former Employees
26
Total
229
Contribution Requirements - The Cify 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 9.47% of covered payroll.
Employees are required to contribute 4.26% of their annual pay. FY 2022 contributions to the
pension plan from the City were $858,532.
FN Page 43
NOTES TO BASIC FINANCIAL STATEMENTS - Continued
CITY OF OWASSO, OKLAHOMA
YEAR ENDED JUNE 30, 2022
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
d. Post Retirement Cost -of -Living Increase
e. Inflation Rate
f. Mortality Table
g. Percent of Married Employees
h. Spouse Age Difference
2021
Entry age normal cost method
7.50%
Ranges between 4.57 and 7.57
N/A
2.75%
Inflation is 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:
Yearl:225
Year2:140
Year 3: 100
Year 4: 70
Year 5: 40
j. Date of Last Experience Study September 2017 for fiscal years 2012 through 2016
Discount Rate - The discount rate used to value benefits was the long -term expected rate of
return on plan investments, 7.5% 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.
FN Page 44
NOTES TO BASIC FINANCIAL STATEMENTS — Continued
CITY OF OWASSO, OKLAHOMA
YEAR ENDED JUNE 30, 2022
4.A-- Employee Pension Plans -- Continued
Oklahoma Municipal Retirement Fund Defined Benefit Plan -- 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 (2.75 %). 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, 2021,
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 45
NOTES TO BASIC FINANCIAL STATEMENTS - Continued
CITY OF OWASSO, OKLAHOMA
YEAR ENDED JUNE 30, 2022
4.A-- Employee Pension Plans -- Continued
Oklahoma Municipal Retirement Fund Defined Benefit Plan -- Continued
Changes in Net Pension (Asset) Liability - The total pension liability was determined based on an
actuarial valuation performed as of July 1, 2021, 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 fallowing table reports the components of changes in net pension (asset)
liability:
Balance at June 30, 2021
Changes forthe year:
service cost
Interest cost
Differences between expected and actual experience
Contributions - employer
Contributions - employee
Net investment income
Benefit payments, including refunds
Administrative expense
Netchanges
Balance at June 30, 2022
Total Pension Plan Fiduciary Net Net Pension
Liability Position (Asset) Liability
(a) (b) (a) - (b)
$ 22,481,079 $ 19,967,706 $ 2,513;373
903,089 - 903,089
1,662,055 - 1,662,055
40,430 - 40,430
759,669
(759,669)
363,208
(363,208)
5,598,152
(5,598,152)
(652,474) (652,474)
- (41,388)
41,388
1,953,100 6,027,167
(4,074,067)
$ 24,434,179 $ 25,994,873 $ (1,560,694)
Sensitivity of the Net Pension Asset to Changes in the Discount Rate - The following presents the
net pension asset of the City calculated using the discount rate of 7.5 %, as well as what the Plan's
net pension (asset) liability would be if it were calculated using a discount rate that is
1- percentage point lower (6.5 %) or 1- percentage -point higher (8.5 %) than the current rate:
Employer's net pension (asset) liability
I% Decrease Current Discount I% Increase
(6.5 %) Rate (7.5 %) (8.5 %)
$ 1,989,495 $ (1,560,694) $ (4,461,588)
FN Page 46
NOTES TO BASIC FINANCIAL STATEMENTS— Continued
CITY OF OWASSO, OKLAHOMA
YEAR ENDED JUNE 30, 2022
4.A-- Employee Pension Plans -- Continued
Oklahoma Municipal Retirement Fund Defined Benefit Plan -- Continued
Pension Assets, Pension Expense, and Deferred Inflows and Outflows of Resources Related to
Pensions - At June 30, 2022, the City reported a net pension asset of $1,560,694 for the OkMRF
pension. The net pension asset was measured as of July 1, 2021, and the total pension liability
used to calculate the net pension asset was determined by an actuarial valuation as of July 1,
2021. For the year ended June 30, 2022, the City recognized pension expense of $251,700. At
June 30, 2022, 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
375,316 $ (14,097)
274,186
(2,852,782)
858,532
$ 1,508,034 $ (2,866,879)
The $858,532 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 asset in the year ended June 30, 2023. Other amounts reported deferred inflows of
resources related to pensions will be recognized in pension expense as follows:
Amortization
Year ended June 30:
Expense
2023
$ (364,812)
2024
(512,598)
2025
(564,760)
2026
(778,409)
2027
3,202
Total
$ (2,217,377)
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.
FN Page 47
NOTES TO BASIC FINANCIAL STATEMENTS — Continued
CITY OF OWASSO, OKLAHOMA
YEAR ENDED JUNE 30, 2022
4.A-- Employee Pension Plans -- Continued
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 eamings. Employees are exigible to
participate upon hire and may make contributions to the plan.
OMRF Contributions - Based upon employee contributions, the City's contributions vary from
0%-1% of covered payroll. The City's contributions for each employee (and interest allocated to
the employee's account) are vested at a rate of 40% after two years and then 20% 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.
For the year ended June 30, 2022, the following amounts related to the defined contribution plan:
Employee contributions $239,507
City contributions $119,753
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 100% 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 through 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.
FN Page 48
NOTES TO BASIC FINANCIAL STATEMENTS — Continued
CITY OF OWASSO, OKLAHOMA
YEAR ENDED JUNE 30, 2022
4.B- -Other Post- Employment Benerits-- Continued
Employees covered by benefit terms: At June 30, 2022, the following employees were covered by
the benefit terms:
Inactive employees currently receiving benefits
4
Active employees not yet receiving benefits
272
Total
276
Total OPEB Liability - The City of Owasso total OPEB liability of $1,828,463 was measured as of
June 30, 2022 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.
Actuarial Methods and Assumotions - The total OPEB liability in the June 30, 2022 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 -
3.54%
Based on Bond Buyer GO Bond 20 Index
d. Healthcare Cost Trend Rate
4.50%
e. Retirees' Share of Benefit - Related Costs
48.85%
f. Mortality Rates - RPH -2014 Total Table
with Projection MP -2021
The actuarial assumptions used in the June 30, 2022 valuation were based on the results of an
actuarial experience study for the twelve -month period ending June 30, 2022.
FN Page 49
NOTES TO BASIC FINANCIAL STATEMENTS - Continued
CITY OF OWASSO, OKLAHOMA
YEAR ENDED JUNE 30, 2022
4.B- -Other Post - Employment Benefits -- Continued
Changes in the Total OPEB Liability -
Total OPEB
Liability
Balance as of July 1, 2021
$ 2,006,844
Changes for the year:
Service Cost
199,061
Interest
46,808
Differences between expected and
actual experience
(79,296)
Changes in assumptions or other inputs
(267,193)
Benefit payments
(77,761)
Net changes
(178,381)
Balance as of June 30, 2022
$ 1,828,463
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 (2.54 %) or
1- percentage -point higher (4.54 %) than the current discount rate:
1 % Decrease Discount Rate 1 % Increase
2.54% 3.54% 4.54%
Total OPEB Liability $ 2,017,933 $ 1,828,463 $ 1,658,672
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 (3.5 %) or 1- percentage -point higher (5.5 %) than the current trend rate:
Total OPEB Liability
1 % Decrease
3.50%
$ 1,600,145
Health Care
Cost Trend
Rate
4.50%
$ 1,828,463
1 % Increase
5.50%
$ 2,101,339
FN Page 50
NOTES TO BASIC FINANCIAL STATEMENTS — Continued
CITY OF OWASSO, OKLAHOMA
YEAR ENDED JUNE 30, 2022
4.B- -Other Post - Employment Benefits -- Confinued
OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to
OPEB - For the year ended June 30, 2022 the City of Owasso recognized OPEB expense of
$170,791. At June 30, 2022, the City of Owasso had the following deferred outflows and deferred
inflows of resources related to OPEB.
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,
2023
2024
2025
2026
2027
Thereafter
Total
Amortization
Expense
$ (75,078)
(75,078)
(75,078)
(75,078)
(75,078)
(149,256)
$ (524,646)
FN Page 51
Deferred
Deferred
Outflows of
Inflows of
Resources
Resources
Differences between
expected and actual
experience
$ (403,215)
Changes in
assumptions /inputs
116,432
(237,863)
Total
$ 116;432
$ (641,078)
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,
2023
2024
2025
2026
2027
Thereafter
Total
Amortization
Expense
$ (75,078)
(75,078)
(75,078)
(75,078)
(75,078)
(149,256)
$ (524,646)
FN Page 51
NOTES TO BASIC FINANCIAL STATEMENTS — Continued
CITY OF OWASSO, OKLAHOMA
YEAR ENDED JUNE 30, 2022
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
General Liability:
- Torts
- Errors and omissions
- Police liability
- Vehicle
Physical Properly:
-Theft
- Damage to assets
- Natural disasters
Workers' Compensation:
- Employee injuries
Health:
- Medical
- Dental
- Vision
Method Managed Risk of Loss Retained
Self- insured effective Entire risk of loss retained in
November 2003. self - insurance fund.
Property Is fully insured by
commercial carrier.
Self- insured within limits of
Oklahoma workers'
compensation laws.
Self-insured effective July 2004
$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
AEfNA.
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, 2022
4.0 - -R1sk Management -- Continued
For the risk management internal service self- insurance funds, changes in the claims liability for
the City from July 1, 2020 to June 30, 2022 are as follows:
Claims liability and related payables, July 1. 2020
Claims incurred and changes in estimates
Claims paid
Claims Ilablrly and related payables, June 30, 2021
Claims incurred and changes in estimates
Claims paid
Claims liability and related payables, June 30.2022
Workers'
Compensations
$ 679,000
23.954
(175,9541
$ 527,000
27.644
(101,644)
$ 453,000
Healthcare
$ 390,600
4,766,300
(4,766,7001
$ 390,200
5,337,086
(5,324,0861
$ 403,200
General
Liability /
Property
70,724
(70.7241
81,393
(81.3931
Total
Internal Service
$ 1,069,600
4,860,978
(5,013.3781
$ 917,200
5,446,123
(5.507.1231
$ 856,200
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 not 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 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, 2022, the contract amount related to OPWA payback
agreements totaled $1.2 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 fax collections by
vendor.
FN Page 53
NOTES TO BASIC FINANCIAL STATEMENTS - Continued
CITY OF OWASSO, OKLAHOMA
YEAR ENDED JUNE 30, 2022
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, 2022, the City had some significant outstanding
commitments on contracts in excess of $1,000,000. The total contract amounts were
approximately $45.0 million, and the remaining balance on those contracts totaled
approximately $25.6 million, as of June 30, 2022. A breakdown of the outstanding encumbrances
follows:
Fund
General
Half -Penny Sales Tax
Vision Recapture Tax
Capital Improvement
Nonmajor Governmental
OPWA
Internal Service Funds
Total Encumbrances
Continaencies:
Encumbrances
$ 808,744
987,887
10,861,597
2,726,433
486,306
9,757,235
15,557
$ 25,643,759
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, 2022
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 2% 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, 2022, the City had not drawn down any of the funds.
NOTE S -- 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. 91, Conduit Debt Obligations - This statement 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. 94, Public- Private and Public - Public Partnerships and Availability
Payment Arrangements - This statement improves 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 - This
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.
GASB Statement No. 99, Omnibus 2022 - This statement enhances comparability in
accounting and financial reporting and improves the consistency of authoritative
literature by addressing (1) practice issues that have been identified during
implementation and application of certain GASB Statements and (2) accounting and
financial reporting for financial guarantees. This Statement will become effective for the
City in the fiscal year ended June 30, 2023.
FN Page 55
NOTES TO BASIC FINANCIAL STATEMENTS - Continued
CITY OF OWASSO, OKLAHOMA
YEAR ENDED JUNE 30, 2022
NOTE 5 -- FUTURE ACCOUNTING PRONOUNCEMENTS — Continued
• GASB Statement No. 100, Accounting Changes and Error Corrections—on amendment of
GASB Statement No. 62 - This statement enhances accounting and financial reporting
requirements for accounting changes and error corrections to provide more
understandable, reliable, relevant, consistent, and comparable information for making
decisions or assessing accountability. This Statement will become effective for the City in
the fiscal year ended June 30, 2024.
• GASB Statement No. 101, Compensated Absences - This statement better meets the
information needs of financial statement users by updating the recognition and
measurement guidance for compensated absences. That objective is achieved by
aligning the recognition and measurement guidance under a unified model and by
amending certain previously required disclosures. This Statement will become effective for
the City in the fiscal year ended June 30, 2025.
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
2022, the City received an additional $ 3,242,570 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 56
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 IlabBity.
Service cost
Interest cost
Differences between expected and actual experience
Changes of assumption a olherinputs
Benefit payments
Net change in total pension liability
Total OPEB liability- beginning
Total pension liability- ending
Covered payroll
Total OPEB liabirity as a percentage
of covered payroll
2018
2019
2020
2021
2022
$ 118,303
$ 122,893
$ 140,710
$ 175,547
$ 199,061
72,235
72,774
65,702
47,018
46,808
(279,153)
(80,039(
(154,841( 179,296)
12,869
149,091
12,530
1267,1931
(48,8751
67,805)
(69,258)
(50,721
(77,761)
141,663
(138,422)
206,206
29.533
(178,381)
1,767,864
1,909,527
1,771,105
1,977,311
2006.844
$ 1,909,527
$ 1,771,105
$ 1,977,311
$ 2,006,844
$ 1.820.463
$ 14,835,673
$15,652,240
$ 16,553A03
$ 17,921,347
$ 18,541,430
12.87%
11.32%
11.95%
11.20%
9.86%
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 informotion.
R51 Page 1
CITY OF OWASSO, O"HOMA
SCHEDULE OF CHANGES IN NET PENSION NARILOY
OKLAHOMA FIREFIGHTERS PENSION L REIMFMENT SYSTEM
lad le FBcal Yson
Ndes la Schedule;
fnlamoBen FOrlef rye. Ti usava9064e
See independent auditor's report as it relates to required supplementary information.
R51 Page 2
TOTS
2016
2017
20111
2019
020
1021
4022
7ola1pwWanliabli
Sii cost
E 132.538
$ 182.979
$ 809.432
$ 04,995
3 637,281
$ 910.445
S 9311328
$ 1,00,562
Inleredcost
2,854,335
3.066,398
3;301,439
3,502,356
3,603282
3,906,369
4,158,683
4,511,156
(1.866,5111
362191
15,675
261.921
2,315,164
1,522821
(363,6131
1..559544
2663599
(2160.153)
12533746)
(2.609,519)
(2.7181822)
(3.182,021)
13354.8281
(31603,345)
(6.262.042)
(73,261)
Change In apportionment
1,075.941
1,115.001
944,717
12359.2871
3,039529
2621,633
3373,172
Other
Net change in total pension
1,108.911
2605.2/8
3,478,04
4.079.010
(1.374,4351
3,678,660
5,874,640
4,540.186
Totdpeneon8obfity- beginning
38.405.341
40.194.258
42799,506
4677.180
51,156,790
49,812355
53,491.023
593651663
TatdpensionraUlty-nMin, (o)
$40.194.258
342199506
$ 462",)80
i 51,156.190
j 49,812355
3 53.491623
j 593Mhiill
$ 0.905,849
Plan fiduciary net position:
ConMbutiom- employer
b 465,151
$ 489.432
$ 521.148
3 540373
E 539,351
3 595.016
$ 650.206
$ 695.47[
Contribution, - nonemployer
991,261
1,167,3"
1,238)20
1,204,00
1,299645
1.391.132
1,498.831
1.115,062
ConMbutiom- employee
274,811
31 Loss
326.460
342697
337.907
375.854
413.866
07,842
Netinvestmentincome
4,182,134
1,4921"
189,489
4,109,435
3,158.598
2602.403
11509ADS
13,983,924
Benefit payments, inMding refurde of employee conlnbutam
12,160.153)
12335,1461
(2A89,519)
(2718622)
(3,11120211
(3354,828)
(3,603,345)
(6,262012)
Admin66dive expense
(24,401)
(1519631
126,5401
(32,25)
(27.181)
(30,165)
13L031
f33S53)
Change in proporlionate store of plan
132914
1.110607
612802
(1,511.610)
2149,601
2,055,511
2360.409
Olha
(15,831)
11991
186
16131
L115
1319)
121321
Net change in plan fiduciary net posilan
3.113.626
1,09,M7
800159
IRM101
1,154,502
3,736,994
25 7Z982
12.294.332
Plan Fiduciary net poAeon - beginning
23,565.718
27,319,404
0.210,611
30019.370
3017,01
35.231.559
38.96&553
41541.535
Plan fiduciay net psifion - ending (61
$21]19,404
30.218,611
3 30.019670
$ 34.071.477
$ 35731.559
$ 38.968,553
41541535
$ 53.835.1161
Plansnetpensbn(wet) 8ablity- ending (a) -(b)
312,1114654
$13,5801895
$ 167511,410
$ 17619.313
$ 14,580,196
$ 14,522470
$ 11,824,128
$ 10.069,982
Ndes la Schedule;
fnlamoBen FOrlef rye. Ti usava9064e
See independent auditor's report as it relates to required supplementary information.
R51 Page 2
CITY OF OWASSO, OKLAHOMA
SCHEDULE OF PROPORTIONATE SHARE OF THE NEE PENSION LIABILITY
OKWIOMANREFIGHTERS PENSION 6 RETIREMENT SYSTEM
Lot 10 Fiscal Yew
LOtys proportion of the net pereion foblity
Glys proportionate share of the net pension labfty,
City's covered payroll
CRys piopodiamle share of the net pension EobBityas a percentage of Ib covered
Payroll
Plan fduciayNet positron as a percentage of the total pension liability
Nola to Sehedule..
The schedule b as ofthe mearorcmenf dale, Which Is one yeorM aaears.
fnfoanoNon fa prior years Is unavailable
2015 2016 2017 2018 1019 1020 2021 2072
1246158% 1279517% 1.337786% 1357954% 1295327% 1.374368% 1.446865% 1.529076%
$ 12.814.854 E 13580.895 $16,258A10 $ 17.079,313 $ 14,580,796 $ 14,522.470 $ 17.824,128 $ IOM9.982
$ 3292364 $ 5365832 $ 3,639,341 $ 3,764,707 $ 3,961,245 $ 4,443,878 $ 4.843;678 $ 5 .036.128
389% 403% 447% 454% 368% 377% 368% 2DD%
60.12% 6827% 6437% 66.61% 70.737. 7295% 69,98% 84.14%
See independent auditor's report as it relates to required supplementary information.
RSI Page 3
CITY OF OWASSO, OKLAHOMA
SCHEDULE OF CONSRIBOHONS
OKLAHOMA FIREFIGHTERS PENSION K RETIREMENT SYSTEM
Last 10 fiscal Years
Statutorily required contribution
Contributions in relol'ion to the stafufon7yrequired contribution
Contribution deRdency, (mcea)
Ciys covered payroll
Contributions as a percentage of covered payroll
Notes to Schedule:
Infarmallon forpdoryeaa Is unavailable
3 471,216 $ 509,508 $ 526,923 $ 554,574 $ 622,143 1 678,115 $ 705,058 $ 719,217
471.216 509,500
526.923 554,574
622143 678,115 705,058
719.217
$3,365,832 $3.639,341
$3.764,707 $3,961,245
$4,443,078 $4,843,678 $5,036,120
$5,119,128
14.00% 14.00%
14.00% 14.00%
14.00% 14.00% 14.00%
14.05%
See Independent auditor's report as it relates to required supplementary information.
R51 Page 4
CITY OF OWASSO, OKLAHOMA
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
OKLAHOMA FIREFIGHTERS PENSION ✓E RETIREMENT SYSTEM
For the fiscal year ended June 30, 2022
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 dollar of payroll
Assumptions
Long -term rate of return 7.5% per year
Salary increases 2.75% to 10.507.
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, ORLIHOMA
SCHEDULE Of CHANGES IN NET PENSION LIABIM
ORLAHOMAPOUCE PENSION B RUIREM9R SYSTEM
Lm1101scal Yems
Total Pet lebRity:
Serrice east
Inlerest cost
Change In benefit team
Differences between egsected and acleal erzperence
Assumption changes
Benefit poy rmnb, ncludIng relends
avenge in apposionment
Net change in late] pension liability
Total pemlon fob8ly - beginning
Test pension iobily- ending lot
M. Bdaclary net pes8laa
Contnbutions- employer
Connbufions- men-employer
ContbuBOm- employee
Net investment acorns,
Benefit payment. IncNding retmtls of employee canMlwllons
Admineta8ve expense
Charlie in popalionote share of plan
Other
Net drone in plan fiai net pension
Plan fiduciary net position- beginning
Plan fiduciary net post ion -ending (b)
Plans net pension(msetl fab3ty- endng(a) -(b)
Netes le Sahedale:
Wanness. Mr Prioryeoa t...liable
2015
2016
2017
2018
M19
2010
2021
2022
$ 47084
$ 578025
$ 616,955
$ 706.957
$ 710,070
$ 732.276
$ 801,056
S 879332
1.430,030
1.738,2217
1.735.169
1.921,514
1,976717
2068.294
2229.537
2.458,569
24297
513,181
t16394)
(13511691
6.267
(470.940)
(19515)
492153
1176.143)
71,170
119.2461
M.706
(1870,714)
11.500.502)
(1.457.133)
11.616.2591
11.575.6081
11,757,7011
11.915,7191
(2,488,11131
(7,375)
3.550,5911
(178dwil
1.461273
174,1101
37,662
1,131,9(13
112863
671.652
1.231,272
723.177
2702675
1,447.568
1,130.3&
2586815
2803.551
191126136
19.797.788
24.029.060
24752237
2.954,912
20.41MMI)
29532864
32,119.679
E 19,797.788
24,3 029Ad0
24§ 152231
26.954,912
S 28A024B0
$ 29.532864
$ 32119.679
$ 34.923,230
5 326,567
$ 389.133
$ 402984
$ 434,836
E 453,108
E 476,532 E
511.106
$ 559.053
281.316
315832
377,514
384547
40,610
447.197
473032
352533
198.723
242151
=033
268,262
279,384
295.874
320.592
347.388
2648802
789,513
1221,8311
2,719,133
2319,321
1,185.645
655139
9,570511
11870.1141
11500502)
(1.49.133)
(1,616.259)
11575,6081
11,79.7011
11.915,7191
f2,488,187)
(16;7211)
12DW)
119.2461
(19.0511
119.429)
(21.1511
(23,3841
(24,606)
-
3.604818
1177,762)
1.553326
174.241
38,377
1,137,677
1,&13031
(7,375)
SA55
2050
1,354
8861
17.2271
2.359881
3885766
(843.391)
3,726,142
2871,627
664773
LIMAM
10,113,212
17,740 ,314
21,10(10115
23985881
23.142.490
26868632
28,940,959
29,605832
30.771,516
$20.100,115
520,985,881
$0..142AM
526.868632
E 28.940759
$ 29.605832 E 30.771,516
$ 48884.718
S (3023271
5 43,179
$ 1,609747
$ 86,280
E 531,119
112,168) 5
1.38163
$ 0.961,488)
See independent auditor's report as It reloles to required supplementary information.
R51 Page 6
CDY OF OWASSO, OKLAHOMA
SCHEDULE OF
NET PENSION LIABILITY (ASSET)
OKLAHOMA POLICE PENSION IS RETIREMENT SYSTEM
Lost 10 Fiscal Yews
City's proportion of The net pension IabBHy (asset)
Clys proportionate share of the net pension Robliy (asset)
City; covered payroll
City's proportionate shore of the net pension liability lassel) as a
percentage of its covered payral
Plan fiduciary net position as a percentage of The total pension Robi ly
(ml)
2015
2016
2017
2018
2019
2020
2021
2022
89.7941%
1.0590%
1.0511%
1,1217%
1.1290%
1.1305%
1.1739%
1.2427%
$ 1302321
$ 43,179
$ 1,609,747
$ 86,280
$(537,779)
$ 172,16B)
$1,34&163
$(5,961480)
$ 2419,274
$ 2694,629
$ 3,039,381
$3,420,202
$3,450,171
$3,676,122
$3.932,727
$ 4.298.661
(1250%)
1.60%
5296%
252%
(15.59% )
11.96 %)
34.26%
(138.68 %)
101.53%
99.82%
93.50%
99.68%
101,89%
100.24%
95.80%
11707%
Notes to Schedule:
The schedule Is as of The measurement date, which is one year In man,
Information forpdoryears is unavailable
See independent auditor's report as it relates to required supplementary information.
RSI Page 7
CRY OF OWASSO, OKLAHOMA
SCHEDULE OF CONTRIBUTIONS
Iad10FIrmlYears
Notes to Schedule.
Information for prior years u u rovallubl e
See independent auditor's report as it relates to required supplementary information.
R51 Page 8
2015
2016
1017
2018
1019
2020
2021
2022
350183
$ 444.625
j 448,521
f 477.895
$ 511.254 f
558.825
S 581.877
Cmkbvfions In relafion to the stalubrily required conh6utlan
350 ,280
395,119
444.625
448.521
477.895
511154
558.825
581.877
2.694,629
$ 3.039381
f 3:420.202
$ 3,450.171
$ 3,676.122
$ 3332,727 $
4.298.661
$ 4.475.964
Conhlbullons as o percentage of covered payrol
13.001
13.00%
13.00%
13.005
130OA
13.00%
13.00%
13.00%
Notes to Schedule.
Information for prior years u u rovallubl e
See independent auditor's report as it relates to required supplementary information.
R51 Page 8
CITY OF OWASSO, OKLAHOMA
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
OKLAHOMA POLICE PENSION & RETIREMENT SYSTEM
For the fiscal year ended June 30, 2022
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 12.0%
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, with age set back
four years as well as other adjustments based on different
membership groups
See independent auditor's report as it relates to required supplementary information.
RSI Page 9
CRY OF OWASSO, OKLAHOMA
SCHEDULE Of CHANGES IN HIS PENSION NABIUTY
OKLAHOMA MUNICIPAL RETIREMENT FUND - DEFINED 6ENEFIT PUN
Last lO nscd Yeas,
Plats net pension land) Babllly- ending (at -(b) 3 1513,9551 3 32236 j 922733 _L I095804 L]07969 3 1.539.393 2513.723 (ISd0594
Nolan to Schedde:
Me xchedde h m of measurement dale, wWch6 one Yeorin omen.
Infomallon for qbT years Fs uneva8a0e
See independent auditor's report as it relates to required Supplementary information.
RSI Page 10
MIS
2016
2017
MIR
2019
020
2021
Mn
Toldpanslanllabillly:
Service cost
b 534,626
$ 605,212
E 646:982
E 689531
$ 262936
3 879,252 3
841,741 b
903,089
Inlered cost
822218
906.99
992,554
1,101,384
I,=2116
1,344508
1,501,016
1,662055
Differences befecen expected and actual expmience
45,301
67,568
315,800
115,2221
32,299
419,861
60.430
Benefit Payments. lod:ding reunds
1449,0021
(392,469)
[381.3501
1363,0331
1468,9021
(420,431)
(529.204)
(652,04)
Other
Anumplioncheges
495.212
423.142
Net change in told pension fiabilly
957059
7160.543
7330.54
2,268.899
1,5M,3
2,139,360
2182914
U53,100
Totalpendon llabSly- beginning
10,94D.322
11598.26
13,058,229
14.389.533
16,658.432
10.158505
20,298,165
22481,029
fatal Penton 9ab8ty- ending lal
311,690.2]6
13,050.119
14 .389,533
I§ 6,h5B,133
1111159 ,805
20.290,165 22,5 181.019 2/
Plan Fiduc on, net,.111on:
Coninbulies- emplomr
$ 403.210
b 428.631
$ 450.846
b 49SM
$ 51.1,45S
S 649,224 S
682,855 b
259,669
Contnbulions- employee
235.624
255,463
270,690
296.684
316;214
322,615
345,951
363,200
Net lme rwwsliacome
1,241,201
353,284
126,963
1 ,695.510
111581441
1.213.3(1
294,M2
5598.152
Bereft payments, including refunds of employee contributions
1449,0021
1392.691
(681,350)
paO331
1468,902)
100,431)
1519,11X)
(6524241
Administrative eu,eme
125,2221
126.0511
126.0921
129.5361
1321491
135.2631
(39.3811
141.3881
Net change In plan 8ducary net Podllan
11905516
613852
441,251
2095,20
1.516.519
1,619.625
7=81934
6,22.161
Plan fiduciary net pasition - begloning
10506]]5
12.413.191
13.026,43
13,49,300
15562628
12.029,10
18,250.222
19,90,206
Plan Fiduciary net pos8(an- ending lbl
12.12191
(13.0553
AS 461500
315.562618
311219.10
318,158,222 19.90.06 375.994,613
Plats net pension land) Babllly- ending (at -(b) 3 1513,9551 3 32236 j 922733 _L I095804 L]07969 3 1.539.393 2513.723 (ISd0594
Nolan to Schedde:
Me xchedde h m of measurement dale, wWch6 one Yeorin omen.
Infomallon for qbT years Fs uneva8a0e
See independent auditor's report as it relates to required Supplementary information.
RSI Page 10
CITY OF OWASSO, OKLAHOMA
SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY (ASSET)
OKLAHOMA MUNICIPAL RETIREMENT FUND
Last 10 Fiscal Years
2015 2016 2017 2018 2019 202D 2021 2D22
Cih/sproporhonate share of the net pension liability (asset) $ (513,955) $ 32736 $ 922,233 $ 6095,804 j U79,658 $ 1,539,393 $ 2,513373 $ )1,560,694)
Cilys covered payroll $ 5,653,136 $ 5,955,951 $ 6,329,343 $ 702,962 $ 7,316,302 $ 7,573,133 $ 8,121,0511 $ 8,526,026
Cdy's propadlanale share of the net pension Robiity (asset) as
a percentage of its covered payro0 (9.09 %) 055% 1457% 15.65% 14.76% 20.31% 30.95% (18.31 %)
Plan fiduciary net position as percentage of the told pension
labilty(asset) 10452% 9915% 9359% 93.42% 94.05% 92.42% 88.82% 10639%
Notes to Schedde:
The schedule Is as of the measurement dale, which is one year In aneors.
Information for prior years Is unavailable
See independent auditor's report as it relates tg requited supplementary Information.
RSI Page 11
CITY OF OWASSO, OKLAHOMA
SCHEDULE OF CONTRIBUTIONS
Last 10 Fiscal Years
Acfuarly determined cadnbution
Employer conlrbuliom
Employee conMb0ions
Contribution deficiency jeroess)
Ciys covered payroll
Contrbulbers as a percentage of covered payroll
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
1 659,426 $ 639,394 $ 684.094 $ 721,736 5 792387 $ 859,729 $ 972,389 $1,033,812 51,122817 $1,238,565
440,076 403.770 428,631 450.846 495,503 543,455 649,774 687,855 759,669 854,277
219,350 235,624 255,463 270,890 296.884 316,274 322615 345,957 363208 384,288
$5,325,723 $5,653,136 $5,955,951 $6,329,343 $7,W2962 $7,316,371 $1,573133 $11J21,058 $8,526,026 $9,020,865
1238% 11.31% 11.49% 11.40% 1112% 11.75% 1284% 12,73% 13.17% 13M
See Independent auditor's report as it relates to required supplementary information.
R51 Page 12
CITY OF OWASSO, OKLAHOMA
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
OKLAHOMA MUNICIPAL RETIREMENT FUND
For the fiscal year ended June 30, 2022
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, 2022
Budgetary Accountinq: 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 monagersubmits 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
CITY OF OWASSO, OKLAHOMA
GENERAL FUND
For the fiscal year ended June 30, 2022
Beginning Budgetary Fund Balance
Resources (Inflows):
TAXES
Sales Tax
Use Tax
Franchise Tax
Occupation Tax
Budgetary Variance with
Basis Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
E 9,886,757 $ 12,174,163 $ 12,174,163 E -
$ 27,633,637 $
31,699,637 E
31,647,008 $
152.629)
4,000,000
4,000,000
4,526,850
526,850
1,156,064
1,156,064
1,280228
124,164
32,760
32,760
65,017
32,257
TOTALTAXES 32,822461
36.688,461
37,519,103
630,642
INTERGOVERNMENTAL
764,001
831,792
67,791
219,100
Alcoholic beverage fm
94.042
94,042
113,372
19,330
Motor vehicle license
255,221
255,221
299,982
44,761
Gas excise tax
58,364
58,364
68,163
9,799
Cigarefte /tobacco tax
362,585
362,585
343,419
(19,166)
Grant and other intergovernmental revenue
3,611.138
758,729
769.936
10,207
TOTAL INTERGOVERNMENTAL
4,381,350
1.528,941
1,593,872
64,931
CHARGES FOR SERVICES
FINES AND FORFEITURES
BUILDINGS AND OTHER
LICENSES AND PERMITS
INVESTMENT INCOME
MISCELLANEOUS
OTHER FINANCING SOURCES
Transfers from other funds
TOTAL OTHER FINANCING SOURCES
Total Resources (Inflows)
Amount available for appropriation
743,162
764,001
831,792
67,791
219,100
219,100
206,711
112,389)
223,879
223,879
422,863
198,984
37,848
37,848
53,701
15,853
107,236
199,265
290,517
91,252
18.322.425
18,322425
20,967,521
2:645,096
1 B.322,425
18,322,425
20,967,521
2,645,096
56,857.461
58,183,920
61,886,080
3,702,160
E 66,744,218
$ 70,358,083
E 74.060,243
$ 3,702,160
(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, 2022
Budgetary Variance with
Basis Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
Charges to Appropriations (OuRiows):
GENERAL GOVERNMENT
CITY MANAGER
$ 924,500 $ 934,500 $ 907,142 $ 27,358
FINANCE
959,305
919,805
898,213
21,592
MUNICIPALCOURT
339,667
420,718
302,706
118,012
INFORMATION TECHNOLOGY
1,767,537
1,939,367
978,057
961,310
GENERAL GOVERNMENT
461,600
676,600
573,999
102,601
SUPPORTSERVICES 669,350 922.354 472,948 449,406
HUMAN RESOURCES 488.508 621.947 472.358 149,589
TOTAL GENERAL GOVERNMENT $ 5.610,467 $ 6,435.291 $ 4.605.423 $ 1,829.868
(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, 2022
Charges to Appropriations (Outflows):
PUBLIC SAFETY
POLICE SERVICES
EMERGENCY COMMUNICATIONS
ANIMAL CONTROL
FIRE/AMBULANCE SERVICES
EMERGENCY MANAGEMENT OPERATIONS
TOTAL PUBLIC SAFETY $ 16,610,382 L_.15,696,155 $ 15,066,837 $ 629,318
(Continued)
See independent auditor's report as it relates to required supplementary information.
RSI Page 17
Budgetary
Variance with
Basis
Final Budget
Budgeted Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
$ 8,179,691 $ 9,055,570
$ 8.533,551
$ 522,019
2,078,048
258,852
248,756
10;096
292,167
298,167
241,599
56,568
5,928,328
5,950,164
5,913,802
36,362
132.148
133.402
129,129
4,273
TOTAL PUBLIC SAFETY $ 16,610,382 L_.15,696,155 $ 15,066,837 $ 629,318
(Continued)
See independent auditor's report as it relates to required supplementary information.
RSI Page 17
BUDGETARY COMPARISON SCHEDULE -- GENERAL FUND -- Continued
CRY OF OWASSO, OKLAHOMA
For the fiscal year ended June 30, 2022
Budgetary
Variance With
Basis
Final Budget
Budgeted Amounts Actual
Positive
Original Final Amounts
(Negative)
Charges to Appropriations (Oudlows):
PUBLIC WORKS
STREETS $ 1,084,515
ENGINEERING 916,638 930,270 865,772 64,498
CEMETERY 146,259 157,517 120,762 36,755
STORMWATER 592,326 618,055 496,863 121,192
TOTAL PUBLIC WORKS $ 2,739,738 $ 1,705,842 $ 1,483,397 $ 222,445
(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, 2022
Budgetary
Variance with
Basis
Final Budget
Budgeted Amounts Actual
Positive
Original Final Amounts
1Negative)
Charges to Appropriations (OuUlows):
CULTURE AND RECREATION
CULTURE AND RECREATION
$ 673,197
$ 782,645
$ 601,898
$ 180,747
COMMUNITYCENTER
400,107
494,268
406,841
87,427
PARKMAINTENANCE
723,346
783,293
584,013
199,280
HISTORICAL MUSEUM
35,444
35.444
26;570
8,874
TOTAL CULTURE AND RECREATION
$ 1,832,094
$ 2,095,650
$ 1,619.322
$ 476,328
ECONOMIC DEVELOPMENT
$ 221,357
$ 218,657
$ 190,130
$ 28,527
STRONG NEIGHBORHOODS
$ 18,202
$ 18,202
$ 13,242
COMMUNITY DEVELOPMENT
$ 934,638
$ 923,638
$ 886,717
$ 36,921
OTHER FINANCING USES
Transfers to other funds
33,573,637
43,573,821
38,196296
5,377,525
TOTAL OTHER FINANCING USES
$ 33.573,637
$ 43,573,821
$ 38,196,296
$ 5,377,525
Total Charges to Appropriations
$ 61,540,515
$ 70.667.256
$ 62,061,364
$ 8,605,892
Ending Budgetary Fund Balance
$ 5,203,703
$ 1309,1731
$ 11.998,879
$ 12.308.052
(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, 2022
Reconciliation of the General Fund Balance Sheet to the Budgetary
Comparison Schedule - General Fund
Fund balance - general fund $ 15,682,437
Receivables not recognized for budgetary basis
Sales Tax Receivable
(4,276,492)
Use Tax Receivable
(582,907)
Other Tax Receivable
(132,866)
Franchise Tax Receivable
(147,880)
Court Fines Receivable net of uncollectible
(12,643)
False Alarm Fines Receivable net of uncollectible
(29,640)
Plus receipts not recognized as revenue for GAAP 57,368
Plus GAAP expenditure accruals not recognized for budgetary basis 1,441,502
Fund balance - budgetary basis $ 11,998.879
(Concluded)
See independent auditor's report as it relates to required supplementary information.
RSI Page 20
MAJOR
SPECIAL
REVENUE
FUND
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, 2022
HALF -PENNY SALES TAX FUND
Budgetary
Variance vith
Basis
Final Budget
Budgeted Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
Beginning Budgetary Fund Balance
$ 3,554,169
$ 5,883,235
$ 5,883,235
Resources (Inflows):
SALES TAX
4,628.395
4.628,395
5,301,511
673.116
MISCELLANEOUS
28,180
39,942
11,762
INVESTMENT INCOME
59,913
59,913
32,262
(27,651)
OTHER FINANCING SOURCES
Transfers from other funds
1,084,515
1,084,515.
1,084.515
Total Resources (Inflows)
5,772.823
5,801.,003
6,458,230
657,227
Amount Available for Appropriation
$ 9,326.992
$ 11,684.238
$ 12.341,465
$ 657,227
Charges to Appropriations (Outflows):
Public Safety
Fire
$ 2,021,420
$ 2,089,818
$ 1,480,419
$ 609,399
Police
1,299,851
1,490,036
871,716
618,320 -
Public Works
Streets
1.550,598
2.802,550
1,622788
1,179,762
Total Charges to Appropriations (Outflows)
8 4,871.869
E 6,382,404
$ 3,974,923
$ 2.407,481
Ending Budgetary Fund Balance
$ 4,455.123
$ 5.301,836
$ 8,366,542
$ 3.064,706
(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, 2022
Reconciliation of the Half -Penny Sales Tax Fund Balance Sheet to the Budgetary
Comparison Schedule - Half -Penny Sales Tax Fund
Fund balance - halfpenny sales tax fund
Receivables not recognized for budgetary basis
Sales Tax Receivable
Miscellaneous Receivable
Prepaid Fees
Fund balance - budgetary basis
9,108,573
(716,540)
(18,260)
(7,231)
$ 8,366,542
(Concluded)
See independent auditor's report as it relates to required supplementary information.
RSI Page 23
OTHER
SUPPLEMENTARY
INFORMATION
NONMAJOR
GOVERNMENT
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 85% 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 12.5% 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 3% hotel tax to be used in economic development and
promotion of tourism and a 2% hotel tax designated to fund the Owasso Strong
Neighborhoods Initiative.
• Stormwater Management Fund - Accounts for revenues derived from the stormwater
system service charge. Funds are used for expenses attributable to stormwater
management services.
• Federal Grants Fund - Accounts for large Federal grants received by the City. Currently, the
fund includes revenue and expenses related to the Coronovirus State and Local Fiscal
Recovery Funds program, a part of the American Rescue Plan Act.
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 (15 %) 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 30.2022
ASSETS
Cash and caTh equivalents
In.f.nh
Prepaid Items
Accounts receivable, net
Due from other gov .nt,
UABIUTIES
Accounts payable
Accrued poyroll BablHles
Due to other fur d:
Unearned revenue
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue -ch rges for ser fce�
FUND BALANCES
Nanspendable - prepaid Items
Restricted
Committed
TOTAL ASSETS $ 384,063 $ 41.363 3 211.397 $ SEATS $ 1.909 $ 11.236.198
$ - $ - $ - $ 51.331 $ - 3 218.547
38.862
41,383 - 37.084 - 79,nl
094.778
TOTAL UABIUTIES 41.383 88,415 1.431.908
TOTAL FUND BALANCES
TOTAL UABILIIES, DEFERRED INFLOWS OF
RESOURCES. AND FUND BALANCES
591.678
- 10,623
1.909 2759,347
384.063 211.397 6.442.642
384.063 211.397 1.909 9.212.612
$ 384.063 $ 41.383 $ 211.397 $ 88.415 $ 1,909 $ 11.236.198
ICancluded)
OSI Page 3
CAPITAL PROJECTS FUNDS
Nonmalor
Ambuianca
Tax Incremental
Park
Cap11a1
Debt Govermnanfal
Caalfal
Financing
Development
Project Grant
SeMCa Fund
Fund
Fond
Fund
Fund
Fund Total,
$ 272.584
$ 7.636
$ 156.335
$ 1.353 $ 7.284.04B
96.004
2.690
55.062
477 2565.453
15,475
1.229.560
31.057
88.415
79 14&514
TOTAL ASSETS $ 384,063 $ 41.363 3 211.397 $ SEATS $ 1.909 $ 11.236.198
$ - $ - $ - $ 51.331 $ - 3 218.547
38.862
41,383 - 37.084 - 79,nl
094.778
TOTAL UABIUTIES 41.383 88,415 1.431.908
TOTAL FUND BALANCES
TOTAL UABILIIES, DEFERRED INFLOWS OF
RESOURCES. AND FUND BALANCES
591.678
- 10,623
1.909 2759,347
384.063 211.397 6.442.642
384.063 211.397 1.909 9.212.612
$ 384.063 $ 41.383 $ 211.397 $ 88.415 $ 1,909 $ 11.236.198
ICancluded)
OSI Page 3
COMIINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND 9AIANCE
NONMAJOR GOVERNMENTAL FUNDS
CITY OF OWASSO, OKLAHOMA
Fa IHe flied Yem ended June W. 2032
OSI Page 4
Anbulanae
Emwgenry
Cemelery
Fnergenry
JuyeNe
Hdel
Slwmwaler
Federal
SeN1ee
911
Siren
Grants
Fund
fund
Fund
FuM
Fund
Fund
Fun)
Fund
REVENUES
Teens
NSeryoyemmental
301.867
309.981
2133.131
Charges teneMms
1,178.913
1.913
20331191
FineraadfOdellums
31232
In.shranlincene
2440
3,041
31
85
1.292
111456
M sdcneous
51
TOTAL REVENUES
23119.342
312920
1.950
3.46
1.191
642.010
2.049.641
2133131
EXPENDDURES
OLnenf
Generalgovenlrent
51313
Public safety
1,923,268
1,158.013
EcanOnie devetiPnent
280,388
Public.las
4 ,611
252943
2.025.853
TOTAL EXPENDIIURES
1.923368
1.168.023:
Hill
68656D
2133.131
Revenues over (under) eWendilures
39524
(815,145)
11950
8146
1.120
362,40
1,363.081
OTHER NNANCING SOURCES LUSESI
Trandns in
1,053622
Innate. cut
TOTAL OTHER FINANCING SOURCES(USESI
1.0536Y
1.000.000
NET CHANGE IN FUND RAIANCES
35314
213.42
1.950
1.003.436
1420
36240
1.363 .081
FUND BALANCES- BEGINNING OF YEAR
761,716
450,064
8.345
50.281
19,845
1.101
2305)11
FUND BALANCES-END OF YEAR
j 1.135390
j 663,546
3 101245
j T.053.112
j 20,965
j 2.062,632
$ 3.668.2911
OSI Page 4
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
NONMAJOR GOVERNMENTAL FUNDS
CITY OF OWASSO, OKLAHOMA
Fee Me ascot year ended June 30, 2032
051 Page 5
CAPITAL PROJECTS FUNDS
Noarno[or
Ambulance
T. Incremental
Park
Capital
Debt
G..nn.ntal
CapBOI
Flnancing
Development
Project Gront
Service
Fund
Totals
REVENUES:
Taxes
$ 501,330
794
$ 1,137,650
Intergovernmental
545.602
3.296.481
Charges forservlces
337.147
4.356.229
102750
Investment Income
798
397
676
MlsceNaneous
40.000
40.057
TOTAL REVENUES
377.945
5[)1.727
103.426
545,602
8.963.872
EXPENDITURES:
Cummt:
Geneml govemment
57,273
6.063
3.087,904
Economic Development
280388
Pubic works
433.617
Capltoloutlay
428.362
6.770
95,499
2659.432
TOTAL EXPENDITURES
434425
6.770
95.499
6.710.614
Revenues over lunderf expenditures
156.4001
501,727
96.656
450.103
800
2.245,258
OTHER FINANCING SOURCES NSESI
Transfer in
2,058.627
Transfer out
1501 ,7271
1450.1M)
1951.8301
TOTAL OTHER FINANCING SOURCES (USES)
1501.M7)
1450.1031
1,106]97
NET CHANGE IN FUND BALANCES
156.4801
96,656
800
3.352,055
FUND BA NCES - BEGINNING OF YEAR
440.543
114.741
1.109
5860.59
FUND BALANCES-END OF YEAR
$ 384.053 $ 211.997
$ - $ 1.909
$ 9.212.612
(Concluded)
051 Page 5
BUDGETARY COMPARISON SCHEDULE •- OTHER GOVERNMENTAL FUNDS
CITY OF OWASSO, OKLAHOMA
Forthe fiscal year ended June 30, 2022
AMBULANCE SERVICE FUND
Budgetary Variance with
Basis Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts INegativel
Beginning Budgetary Fund Balance
$ 351464
$ 483461
$ 483.461
Resources (Inflows):
CHARGES FOR SERVICES
1,827,501
1.827,501
1,909,287
81,786
INTERGOVERNMENTAL
307,867
307,867
MISCELLANEOUS
179.313
179,313
57
(179,256)
INVESTMENT INCOME
2238
2.238
2.440
202
Total Resources (Inflows)
2,009,052
2,009,052
2219,651
210,599
Amount Available for Appropriation
$ 2,360,116.
$ 2,492513
$ 2703.112
$ 210,599
Charges to Appropriations (OuHlows):
Public Safety
$ 2.114.480
$ 2.114.476
$ 1,934,389
$ 1801089
Total Charges to Appropriations (Outflows)
$ 2,114.480
$ 2,114,478
$ 1,934,389
$ 180,089
Ending Budgetary Fund Balance
$ 245,636
$ 378.035
$ 768,723
$ 390,688
(Continued)
OSI Page 6
BUDGETARY COMPARISON SCHEDULE -- OTHER GOVERNMENTAL FUNDS
CITY OF OWASSO, OKLAHOMA
Far the fiscal year ended June 30, 2022
EMERGENCY 911 FUND
Beginning Budgetary Fund Balance
Resources (Inflows):
CHARGES FOR SERVICES
MISCELLANEOUS
INVESTMENT INCOME
OTHER FINANCING SOURCES
Transfers from other funds
Total Resources (Inflows)
Amount Available for Appropriation
Charges to Appropriations ( Outflows):
Pubric Safety
Total Charges to Appropriations (Outflows)
Ending Budgetary Fund Balance
Budgetary Variance with
Basis Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts INegalivel
$ 362,830 $ 423,679 $ 423,679 $
323,163 323,163 307,,303 (13,8601
1,820 1,820 3,047 1,227
$ 302AW $ 2,282,148 $ 1,158.073 $ 1.124.075
$ 302,800 $ 2,282148 $ 1,158.073 $ 1,124,075
$ 405,013 $ 436,141 $ 636,583 $ 200,442
(Continued)
OSI Page 7
1,969,627
1,058,627
1911.0001
324,983
2,294,610
1,370,977
1923,6331
$ 707,813
$ 2,718,2119
$ 1,794,656
$ 1923,6331
$ 302AW $ 2,282,148 $ 1,158.073 $ 1.124.075
$ 302,800 $ 2,282148 $ 1,158.073 $ 1,124,075
$ 405,013 $ 436,141 $ 636,583 $ 200,442
(Continued)
OSI Page 7
BUDGETARY
•- OTHER GOVERNMENTAL FUNDS
CRY OF OWASSO, OKLAHOMA
For the fiscal year ended June 30, 2022
CEMETERY CARE FUND
Beginning Budgetary Fund Balance
Resources (Inflows):
CHARGES FOR SERVICES
INVESTMENT INCOME
Total Resources (Inflows)
Amount Available for Appropriation
Charges to Appropriations (Oufilows):
Public Works
Total Charges to Appropriations (Oufllows)
Ending Budgetary Fund Balance
Budgetary Variancewith
Basis Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts fNe(lafive)
$ 5,846 $ 8,345 $ 8.345 $
800 800 1,913 1,113
30 30 37 7
830 830 1,950 1,120
$ 6.676 $ 9,175 $ 10,295 $ 1,120
$ 1.850 $ 1,850 $ - $ 1,850
$ 1.850 $ 1,850 $ $ 1.850
$ 4,826 $ 7,325 $ 10,295 $ 2,970
(Confinued)
OSI Page 8
BUDGETARY COMPARISON SCHEDULE — OTHER
CITY OF OWASSO, OKLAHOMA
For the fiscal year ended June 30, 2022
EMERGENCY SIREN FUND
Budgetary
Valiance with
Basis
Final Budget
Budgeted Amounts
Actual
Positive
Original
Final
Amounts
(Negatiyel
Beginning Budgetary Fund Balance
$ 33.522
$ 50.281
$ 50.281
Resources (Inflows):
CHARGES FOR SERVICES
1.557
1,557
3,232
1.675
INVESTMENT INCOME
174
174
204
30
OTHER FINANCING SOURCES
Transfers from other funds
1.000.000
1.000.000
Total Resources ( Infows)
1,731
1,731
1,003.436
1,001,705
Amount Available for Appropriallon
$ 35.253
$ 52,012
$ 1,053,717
$ 1.001.705
Charges to Appropriations (OuRlows):
Public Safety
$ 10,000
$ 10.000
$ 10.000
Total Charges to Appropria8ans(Oufilows)
$ 10.000
$ 10.000
$ 10.000
Ending Budgetary Fund Balance
$ 25.253
$ 42.012
$ 1.053,717
$ 1,011.705
(Continued)
OSI Page 9
BUDGETARY COMPARISON SCHEDULE -- OTHER GOVERNMENTAL FUNDS
CITY OF OWASSO, OKLAHOMA
For the fiscal year ended June 30, 2022
JUVENILE COURT FUND
Budgetary
Variance with
Basis
Final Budget
Budgeted Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
Beginning Budgetary Fund Balance
$ 10.009
$ 19,845
$ 19,845
Resources (Inflows):
CHARGES FOR SERVICES
2,246
2,246
11039
(1,207)
INVESTMENT INCOME
86
86
81
151
Total Resources (inflows)
2,332
2,332
1,120
11,212)
Amount Available for Appropriation
E 12,341
$ 22,177
E 20,965
E (1,2121
Charges to Appropriations (Outflows):
General Government
$ 10,000
$ 10,000
E 10,000
Total Charges to Appropriations (Outflows)
$ 10,000
$ 10,000
$ 10.000
Ending Budgetary Fund Balance
$ 2341
E 12,177
$ 20,965 $ 8,788
(Continued)
OSI Page 10
BUDGETARY COMPARISON SCHEDULE -- OTHER GOVERNMENTAL FUNDS
CRY OF OWASSO, OKLAHOMA
For the fiscal year ended June 30, 2022
HOTEL TAX FUND
Budgetary
Variance with
Basis
Final Budget
Budgeted Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
Beginning Budgetary Fund Balance
$ 1,514,735
$ 1,641,208
$ 1,641,208
Resources (Inflows):
HOTEL TAX
381,575
381.575
631,697
250,122
MISCELLANEOUS
4,000
(4,000)
INVESTMENT INCOME
6,800
2,800
7,292
4.492
Total Resources (inflows)
388,375
388,375
638.989
250,614
Amount Available for Appropriation
$ 1,903.110
$ 2,029,583
$ 2,280.197
$ 250,614
Charges to Appropriations ( OuRlows):
ECONOMIC DEVELOPMENT
$ 153,402
$ 303,402
$ 85,676
$ 217,726
STRONG NEIGHBORHOOD INITIATIVE
190,217
203,483
194,712
8,771
Total Charges to Appropriations (Outflows)
$ 343,619
$ 506.885
$ 280,388
$ 226,497
Ending Budgetary Fund Balance
$ 1,559,491
$ 1,522,698
$ 1,999"
$ 477,111
(Continued)
OSI Page 11
BUDGETARY COMPARISON SCHEDULE.. OTHER GOVERNMENTAL FUNDS
CRY OF OWASSO, OKLAHOMA
For the fiscal year ended June 30, 2022
STORMWATER MANAGEMENT FUND
Budgetary
Variance with
Basis
Final Budget
Budgeted Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
Beginning Budgetary Fund Balance
$ 949.977
$ 2.362,288
$ 2,362,288
Resources (Inflows):
CHARGES FOR SERVICES
1580,954
1,580,954
2,037,023
456,069
INVESTMENT INCOME
14,830
14,830
11.456
(3,3741
Total Resources(Inflaws)
1,595,784
1.595.784
2,048.479
452.695
Amount Available for Appropriation
$ 2.545,761
$ 3,958,072
$ 4,410,767
$ 452,695
Charges to Appropriations (OuHbws):
Public Works
E 1,719.934
$ 3,135,256
$ 945.069
$ 2.190,187
Total Charges to Appropriations(Ouillows)
$ 1,719,934
$ 3,135,256
$ 945,069
$ 2190,187
Ending Budgetary Fund Balance
$ 825,827
$ 822,816
$ 3,465,698
$ 2,642,882
(Continued)
051 Page 12
BUDGETARY COMPARISON SCHEDULE -- OTHER GOVERNMENTAL FUNDS
CITY OF OWASSO, OKLAHOMA
For the fiscal year ended June 30, 2022
FEDERAL GRANTS FUND
Budgetary
Variance with
Basis
Final Budget
Budgeted Amounts
Actual
Positive
Original Final
Amounts
(Negative)
Beginning Budgetary Fund Balance
Resources (Inflows):
INTERGOVERNMENTAL
3.227,368
3.227.368
Amount Available for Appropriation
$ - $ 3.227,368
$ 3,227,368
Charges to Appropriations (Outflows):
Public Works
$ - $ 3.227.368
$ 2.133.131
$ 1,094,237
Total Charges to Appropriations (Outflows)
$ $ 3,227,368
$ 2.133.131
$ 1,094.237
Ending Budgetary Fund Balance
$ 1,094,237
$ 1,094.237
(Continued)
OSI Page 13
BUDGETARY COMPARISON SCHEDULE -- OTHER GOVERNMENTAL FUNDS
CITY OF OWASSO, OKLAHOMA
For the Fiscal year ended June 30. 2022
AMBULANCE CAPITAL FUND
333.513
333.513
377,807
44.294
Amount Available for Appropriation
Budgetary
Variance with
$ 803,013 $ 44.294
Basis
Final Budget
Budgeted Amounts
Actual
Positive
$ 534.360
Original Final
Amounts
(Negative)
Beginning Budgetary Fund Balance
$ 324,753 8 425,206 $
425,206
Resources (Inflows):
Ending Budgetary Fund Balance
$ 123,906
$ 224.359
CHARGES FOR SERVICES
332,053 332,053
337,009
4,956
MISCELLANEOUS
40,000
40,000
INVESTMENT INCOME
1,460 1,460
798
16621
Total Resources (Inflows)
333.513
333.513
377,807
44.294
Amount Available for Appropriation
$ 658,266
$ 758,719
$ 803,013 $ 44.294
Charges to Appropriations (Outflows):
Public Safety
$ 534.360
$ 534.360
$ 434,425 $ 99.935
Total Charges to Appropriations (Outflows)
$ 534,360
$ 534.360
$ 434,425 $ 99,935
Ending Budgetary Fund Balance
$ 123,906
$ 224.359
$ 368,588 $ 144,229
(Continued
OSI Page 14
BUDGETARY COMPARISON SCHEDULE — OTHER GOVERNMENTAL FUNDS
CITY OF OWASSO, OKLAHOMA
For the fiscal year ended June 30, 2022
TAX INCREMENTAL FINANCING FUND
Budgetary
Variance wilh
Basis
Final Budget
Budgeted Amounts
Actual
Positive
Original
Final
Amounts
INegativel
Beginning Budgetary Fund Balance
$ 33,641
33.641
Resources (Inflows):
SALES TAX
136,733
202,733
188,782
(13,9511
AD VALOREM TAX
244,248
318.248
308,517
I9,731I
INVESTMENT INCOME
30
30
397
367
Total Resources (Inflows)
381.011
521,011
497.696
123.3151
Amount Available for Appropriation
$ 381.011
E 554,652
$ 531.337 $ 123.3151
Charges to Appropriations (Outflows):
Other Uses
Transfers Out
$ 381.011.00
$ 521,011
$ 521.011
Total Charges to Appropriations (Outflows)
$ 381.011
$ 521,011
$ 521.011 Ending Budgetary Fund Balance
$ 33.641
$ 10,326 $
123,3151
(Continued)
OSI Page 15
BUDGETARY COMPARISON SCHEDULE -- OTHER GOVERNMENTAL FUNDS
CITY OF OWASSO, OKLAHOMA
Forlhe fiscal year ended June 30, 2022
PARK DEVELOPMENT FUND
Budgetary
Variance with
Basis
Final Budget
Budgeted Amounts
Actual
Positive
Original
Find
Amounts
INenative)
Beginning Budgetary Fund Balance
$ 38,850
$ 114,741
Resources (Inflows):
LICENSES 8 PERMITS
35,000
35,000
102,750
67,750
INVESTMENT INCOME
328
328
676
348
Total Resources (Inflows)
35,328
35.328
103,426
68,098
Amount Available for Appropriation
$ 74,178
$ 150.069
$ 218,167
$ 68,098
Charges to Approprlallons (OuRlows):
Capital Outlay
$ 55,000
$ 61.770
$ 6,770
$ 55.000
Total Charges to Appropriations (Outflows)
$ 55,000
$ 61,770
$ 6.770
$ 55,000
Ending Budgetary Fund Balance
$ 19,178
$ 88,299
$ 211,397
$ 123,098
(Continued)
OSI Page 16
BUDGETARY COMPARISON SCHEDULE -- OTHER GOVERNMENTAL FUNDS
CITY OF OWASSO, OKLAHOMA
For the fiscal year ended June 30. 2022
CAPITAL PROJECT GRANT FUND
Budgetary
Variance Wth
Basis
Final Budget
Budgeted Amounts
Actual
Positive
Original
final
Amounts
INegativel
Beginning Budgetary Fund Balance
Resources (Inflows):
INTERGOVERNMENTAL
150.000
1,392,223
545,602
1846.6211
Amount Available for Appropriation
$ 150.000 $ 1.392,223
$ 545.602
$ 1846,6211
Charges to Appropriations (Oufflows):
Capital Outlay
E 150.000 $ 1,392.223
E 545,602
E 846,621
Total Charges to Appropriations (Oufilows)
$ 150,000 $ 1,392,223
$ 545,602
$ 846.621
Ending Budgetary Fund Balance
(Continued)
OSI Page 17
BUDGETARY COMPARISON SCHEDULE -- OTHER GOVERNMENTAL FUNDS
CITY OF OWASSO, OKLAHOMA
Forthe fiscal year ended June 30, 2022
DEBT SERVICE FUND
Budgetary
Variance with
Basis
Final Budget
Budgeted Amounts
Actual
Positive
Original
Final
Amounts
INegaflvel
Beginning Budgetary Fund Balance
$ 996
Resources (Inflows):
AD VALOREM TAXES
50,000
50,000
828
149,1721
INTEREST
Total Resources (Inflows)
504000
50.000
834
149,1661
Amount Available for Appropriation
$ 50,000
$ 50.996
$ 1,830
$ 149,1661
Charges to Appropriations (OuOlaws):
Other Uses
Transfers Out
$ Sum
$ 50,000
Total Charges to Appropriations (OuHlows)
$ 50,000
Ending Budgetary Fund Balance
$ 996
$ 1,830
$ 834
(Concluded)
OSI Page 18
From
CAPIT
PROJECT
FUNDS
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 19
BUDGETARY COMPARISON SCHEDULE -- MAJOR CAPITAL PROJECT FUNDS
CITY OF OWASSO, OKLAHOMA
For the fiscal year ended June 30, 2022
VISION RECAPTURE TAX FUND
Beginning Budgetary Fund Balance
VISION RECAPTURE SALES TAX
INVESTMENT INCOME
MISCELLANEOUS
OTHER FINANCING SOURCES
Transfers from other funds
Total Resources (Inflows)
Amount available for appropriation
Charges to Appropriations (Outflows):
Capital Outlay
Other Uses
Transfers Out
Total Other Uses
Total Charges to Appropriations
Ending Budgetary Fund Balance
Budgetary Variance with
Basis Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts INeaativel
E - 2216.083 $ 10,108.213 $ 10,108,213 $ -
5,091,235 5,091,235 5,831,560 740.325
44,000 44,000 50,779 6,779
- - 117,722 117,722
2.100,000 2,100,000
7235,235 7,235,235 6,000,061 11.235:1741
$ 9,451,318 $ 17,343,408 $ 16,108,274 $ 11,235,1741
E 9,409,318 $ 17,147,810 $ 636,815 $ 16,510,995
42,000
42,000 - - -
E 9,451,318 E 17.147,810 $ 636,815 $ 16,510,995
E E 195.638 $ 15.471.459 15275,821
(Continued)
OSI Page 20
BUDGETARY COMPARISON SCHEDULE -- VISION RECAPTURE FUND -- Continued
CITY OF OWASSO, OKLAHOMA
For the fiscal year ended June 30, 2022
Reconciliation of the Vision Recapture Fund Balance Sheet to the Budgetary
Comparison Schedule - Vision Recapture Fund
Fund balance - vision recapture fund
Receivables not recognized for budgetary basis
Taxes Receivable
16,150,299
(788,096)
Plus payables not recognized as expense for GAAP 109,256
Fund balance - budgetary basis $ 15,471,459
(Concluded)
051 Page 21
BUDGETARY COMPARISON SCHEDULE --MAJOR CAPITAL PROJECT FUNDS
CITY OF OWASSO, OKLAHOMA
For the weal year ended June 30, 2022
CAPITAL IMPROVEMENTS FUND
Budgetary Variance with
Basis Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
Beginning Budgetary Fund Balance
$ 2.379
$ 5,040,429
$ 5,040,429
INVESTMENT INCOME
11 A02
11.402
35,378
23,976
MISCELLANEOUS
1.175,500
1,175,500
1,298.338
122,838
OTHER FINANCING SOURCES
Transfers from other funds
5,886,647
12560,967
10.187.672
12,373,2951
Total Resources (inflows)
7.073,549
13.747.869
11521,388
(2226:4811
Amount available for appropriation
$ 7,075,928
$ 18,788.298
$ 16,561,817
$ 12,226,4811
Charges to Appropriations (Outllows):
Capital Outlay
$ 7,075,928
$ 18;479,286
$ 5.476.132
$ 13,003,154
Total Charges to Appropriations
$ 7,075,928
$ 18:479286
$ 5.476.132
$ 13,003,154
Ending Budgetary Fund Balance
$ 309.012
$ 11.085.6B5
$ 10,776,673
(Confined)
OSI Page 22
BUDGETARY COMPARISON SCHEDULE -- CAPITAL IMPROVEMENTS FUND -- Continued
CITY OF OWASSO, OKLAHOMA
For the fiscal year ended June 30, 2022
Reconciliation of the Capital Improvements Fund Balance Sheet to the Budgetary
Comparison Schedule - Capital Improvements Fund
Fund balance - capital improvements fund
Assets not recognized for budgetary basis
Land held for resale
Receivables not recognized for budgetary basis
Taxes receivable
Plus payables not recognized as expense for GAAP
Fund balance - budgetary basis
$ 12,046,905
(275,000)
(797,864)
111,644
$ 11,085,685
(Concluded)
OSI Page 23
INTERNAL
SERVICE
FUNDS
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.
• Workers' 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 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 Services 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 24
COMBINING BALANCE SHEET
INTERNAL SERVICE FUNDS
CITY OF OWASSO, OIOAHOMA
June30. 2022
LIABILITIES AND NET POSITION
CURRENT LIABILITIES
Accounts payable
11.865
INTERNAL SERVICE FUNDS
78.861
74.749
117.845
city
Workers'
General
H.Uhcare
Internal
12.686
Garage
Comp
Uability
Services
Service Funds
194
Fund
Fund
Fund
Fund
Totah
ASSETS
Incurred but not reported claims
221,970
197,568
CURRENTASSETS
Accrued compensated absences
8.139
Cash and cash equivalents
$ 86.553
$ 1,078,077 $ 322.241
$ 2.485.210
$ 3.972.081
Investments
30,484
379.700
113.494
875,295
1.398,973
Accounts re ..Noble, net of allowance
37.295
Otherreceivables
3.878
Due from other funds
9,623
Prepaid items
9,179
38100
38.000
TOTAL CURRENT ASSETS
163,955
1.457.777
435.735
3,402303
5.459.850
TOTAL LIABILITIES
NONCURRENT ASSETS
465,370
18.861
478.143
1.025,924
Net pension asset
55.715
(4,679)
51,036
Other depreciable capitol assets, net
188,397
8,157
188.397
TOTAL NONCURRENT ASSETS
244.112
14.6791
84.728
10
239,433
TOTAL ASSETS
408.067
1.453.098
435.735
3.402.383
5.699,283
92.895
DEFERRED OUTFLOWS OF RESOURCES
NET POSITION
Deferred outflows - OPEB
1.181
Deferred outflows - pension
35.451
2.895
Unrestricted
99.867
38.346
TOTAL DEFERRED OUTFLOWS OF RESOURCES
36,632
2.895
39.527
LIABILITIES AND NET POSITION
CURRENT LIABILITIES
Accounts payable
11.865
12,370
78.861
74.749
117.845
Accrued poyroll 11a67tltles
12,686
Unearned revenue
194
Current portion of noncurrent BabliBes:
Incurred but not reported claims
221,970
197,568
419,538
Accrued compensated absences
8.139
TOTAL CURRENT LIABILITIES
32.690
234.340
18.861
272.511
558.402
NONCURRENT LIABILITIES
Total OPEB liability
21.681
Incurred but not reported claims
231,030
205.632
436,662
Accrued compensated absence
9.179
TOTAL NONCURRENT LIABILITIES
30.860
231.030
205.632
467,522
TOTAL LIABILITIES
63.550
465,370
18.861
478.143
1.025,924
DEFERRED INFLOWS OF RESOURCES
Deferred infbws -OPEB
8,157
Deferred inflows- pension
84.728
10
84.738
TOTAL DEFERRED INFLOWS OF RESOURCES
92.885
10
92.895
NET POSITION
Net investment in capital assets
188.397
Unrestricted
99.867
990.613
476.874
2.924.240
4.431.594
TOTAL NET POSITION
$ 288,264
$ 990,613
$ 416.874
$ 2.924240
$ 4.619.991
OSI Page 25
COMBINING STATEMENT OF REVENUES, EXPENDITURES. AND CHANGES IN NET POSITION
CITY OF OWASSO, OKLAHOMA
For the fiscal year ended June 30, 2022
OPERATING REVENUES
INTERNAL SERVICE FUNDS
City
Workers General
Healthcare Internal
Garage
Comp Uabirty
Services Service Funds
Fund
Fund Fund
Fund Totals
OPERATING REVENUES
Charges for services:
Internal service charges for services
$ 672.055
$ 562.516
$ 400.000.
$ 6,960,648
$ 8,595,219
Other
132
4,575
31,866
2,500
39.073
TOTAL OPERATING REVENUES
672.187
567.091
431,866
6,963,148
8,634.292
OPERATING EXPENSES
Administration
149.797
242,378
1.199.854
1,592,029
Claims expense
49.667
81 A31
5.353,038
5,484.336
City garage
672,152
672.152
Depreciation
25,846
TOTAL OPERATING EXPENSES
697,998
199,464
324,009
6,552.892
7.774,363
OPERATING INCOME (LOSS)
(25,811)
367,627
107.857
410,256
859,929
NONOPERATING REVENUES
Investmentlncome
500
4,953
1,535
12432
19.420
TOTAL NONOPERATING REVENUES
500
4,953
1.535
12.432
19.420
CHANGE IN NET POSITION
125,3111
372580
109.392
422.688
879,349
NET POSITION - BEGINNING
313.575
618,033
3071482
2,501,552
3,740,642
NET POSITION - ENDING
$ 288.264
$ 990.613
$ 416.874
$ 2,924.240
$ 4,619.991
O51 Page 26
COMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS
CITY OF OWASSO, OKLAHOMA
For the Fiscal year ended June 3U, 2042
CASH FLOWS FROM OPERATING ACTIVUIES
Receipts from customers
Payments to supplers
Payments to employees
Other recelpts (payments)
NET CASH FROM
OPERATING ACTIVITIES
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of investments
Investment Income received
NET CASH FROM
INVESTING ACTIVITIES
NET INCREASE IDECREASE1
IN CASH AND CASH EQUIVALENTS
BALANCES- BEGINNING OF YEAR
BALANCES - END OF YEAR
148,5551
INTERNAL SERVICE FUNDS
122.443
473.440
City
Workers'
General
Heolthcons
Internal
Garage
Comp
UaCllily
Services
Service Funds
Fund
Fund
Fund
.Fund
Totals
$ 634,760
$ 562,516
4 400,ODO
$ 6,957,767
$ 8.555,043
(254,183)
(247.142)
1309,4231
16,486,8271
(7.297,575)
(438,505)
(460528)
9,373
4,575
31,866
2500
48.314
148,5551
297,926
122.443
473.440
845.254
116,0981
1279,0641
(86,328)
(624.8041
(1.006.294)
500
4,953
1.535
12,432
19.420
115.5981
1274.1111
(84;7931
1612.3721
f986.8741
(64,153)
23,815
37AM
(138.932)
(141,620)
150.706
1.054.262
284.591
2.624.142
4,113.701
$ 86.553
1,078,077
$ 322,241
$ 2485;210
$ 3,972;081
(Conflnued)
OSI Page 27
COMBINING STATEMENT OF CASH FLOWS —INTERNAL SERVICE FUNDS -- Continued
CITY OF OWASSO, OKLAHOMA
For the fiscal year ended June 30, 2022
RECONCILIATION OF OPERATING INCOME
(LOSS) TO NET CASH FROM
OPERATING ACTIVITIES
Operating Income (loss)
Adjustments to reconcile operating Income (loss)
to net cash from operating activities:
Depredation expense
Change in assets and Fabilifies:
Accounts receivables, net
Otherreceivables
Prepaid
Due from other funds
OPEB
Pension
Accounts payable
Accrued payroll IlabiTfies
Uneamedrevenue
Esfimated fiabillly for claims
Accrued compensated absences
NET CASH FROM
OPERATING ACTIVITIES
$ (25,8111 $ 367,627 $ 107,857 $ 410,256 $ 859,929
25446 25,846
(37.295)
INTERNAL SERVICE FUNDS
(37.295)
Workers` General
Healthcare
Intemal
Garage
Camp Liability
Services
Service Funds
Fund
Furl Fund
Fund
Totals
$ (25,8111 $ 367,627 $ 107,857 $ 410,256 $ 859,929
(37.295)
(2,881)
1,593
9.241
1.320
(17.957)
(9,509) 4,299 14.586
51,390
60,766
2,816
82
(74,000)
13,000
(61,000)
2.794
$ (48.5551 $ 297,926 $ 122443 $ 473.440 $ 845.254
(Concluded)
OSI Page 28
BUDGETARY COMPARISON SCHEDULE -- INTERNAL SERVICE FUNDS
CITY OF OWASSO. OKLAHOMA
For the fiscal year ended June 30,2022
CITY GARAGE FUND
Budgetary
Variance wilh
Basis
Final Budget
Budgeted Amounts
Actual
Positive
Original
Final
Amounts
INeaativel
Beginning Budgetary Fund Balance
$ 74.431
$ 152,713
$ 152,713
Resources (Inflows):
CHARGES FOR SERVICES
625,935
625,935
634,760
8,825
INVESTMENT INCOME
678
678
129
15491
MISCELLANEOUS INCOME
500
Total Resources (Inflows)
626,613
626.613
635.389
8,776
Amount available for appropriation
$ 701,044
$ 779.326
E 788,102
$ 8,776
Charges to Appropriations (Oufllows)
City Garage $ 662,161 $ 706,861 $ 685,996 $ 20.865
Total Charges to Appropriations $ 662,161 $ 706,861 $ 665,996 $ 20,865
Ending Budgetary Fund Balance $ 38,883 $ 72.465 $ 102.106 $ 29,641
1Conlinued)
OSI Page 29
BUDGETARY COMPARISON SCHEDULE -- INTERNAL SERVICE FUNDS
CITY OF OWASSO, OKLAHOMA
For the fiscal year ended June 30, 2022
SELF INSURANCE FUNDS
Budgetary
Variance with
BMIS
Final Budget
Budgeted Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
Beginning Budgetary Fund Balance
$ 3,242,037
$ 4,346,434
$ 4,346,434
Resources (Inflows):
CHARGES FOR SERVICES
8.080,455
8,080;455
7,923.265
(157,190)
INVESTMENT INCOME
18,788
18,768
18,920
132
MISCELLANEOUS INCOME
31,100
31,100
38,942
7.842
OTHER FINANCING SOURCES
Transfers from other funds
150,000
153,879
f153.879
Total Resources (Inflows)
8,280,343
8284,222
7,981.127
(303,0951
Amount available far appropriation
$ 11.522,380
$ 12,630,656
$ 12,327,561
$ 1303,0951
Charges to Appropriations (Outflows):
Self Insurance
$ 7,995.230
$ 8,112.054
$ 7,140,320
$ 971.734
Total Charges to Appropriations
$ 7,995230
$ 8,112,054
$ 71140,320
$ 971.734
Ending Budgetary Fund Balance
$ 3.527,150
$ 4,518,602
$ 5,187.241
$ 668,639
(Concluded)
OSI Page 30
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 over time.
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
Pdmory pdvemm.of
Net Investment in capital assah $ 117.037 $ 132.684 $ 135,M $ 148.659 $ 158.716 $ 168,524 $ 174,610 $
CITY OF OWASSO, OKLAHOMA
Reshl 6.183 7.338 10.782 12,M 16.615 17.742 D.765
23,353 26,951 41.622
NET POSITION BY COMPONENT
5.302 12.207 22494
Net position 3 128.481 S 145.899 136,562 153.917 S 165.820 $ 180.409 199.709 $ 216.141 $ 234.971 3 262.6n
(LAST TEN YEARS)
7.3% 15.9% 29.9%
CITY OF OWASSO, OKLAHOMA
CHANGES IN NET POSITION
(LAST TEN YEARS)
(accrual basis of accounting)
(amounts expressed in thousands)
Expenses
Govemmental
Geneelgovemment
Public safety
Community development...
Recreation and culture
Economic development
Publicworks
Total governmental a.tivitles expenses
Budness,lype octivifies:
Water
Wastewater
Sanitation
Recycle center
economic development
Gall course
Tolal business- type ..Will. expenses
Total primary government expenses
Program Revenue
Govemmental adivi8es:
Charges Irn services
Geneel9overnment
Public safety
Community development...
Recreation and culture
Economic development
Public works"
Operating gents and contribution
Capdal grenls: and conhibulions
Told governmental activities pogram revenues
Business -type activities:
Charges lorservices
Water
Wastewater
Sanitation
Recycle center
Galt course
Capital grants and conMbullons
Total business -type aclivlRes program revenues
Total primary government program revenues
Net(experes) revenue:
Governmental c"Ass
Business -type activities
Total primary government net (expenses) revenue
Gneral Revenues and Other Changes In Net Position
Govemmental activllies
Tares
saes tax
Use tax
Franchise and public service tines
CigC.H./ tobacco tax
Hotel taxes
Alcoholic beverage tax
&911 tares
Intergovernmental
Investment Income
Mscellaneous
Tm.kns4ntem.l activity
Total governmental activllles
Business -type aclMller
Investment Income
Trond.rsAnlemal acIlAty
Tolal business -type ac$vilies
Total primary government
Changes In Net Portion
Govemmental ocV,IIfes
BuslnesctypeatliAlies
Tolal primary government
2813
3411
1,11!
21112
$ 4,952 $ 5.019
$ 5,128 $ 4,636
13.503
14,690
13.901
15.492
17.430
104
111
106
112
am
949
1,185
1,129
1,250
1.494
324
835
328
324
367
.672
51521
5.681
6292
6.329
MAW 27.250
26,167
27.550
31.114
5.616
6,760
6,382
7,470
7.370
3,319
4;809
054
5.098
5.247
1.333
1.613
1.541
11588
1,697
361
220
167
115
200
1,051
1,229
1.143
6283
1.447
11.01)
14,01
14.187
155544
15.961
35080 3 41ABI
40,3s4
43.094 3
47.075
970 $ 627 $ 65 $ 514
2.496
2,962
2,667
2885
3.208
1.752
1.7119
19
47
104
111
106
112
136
796
811
795
670
1.092
21060
1,754
1,753
3,446
509
6,899
4.741
7,7m
19.467
7.000
14,837
10.265
5.340
5,384
5.222
5.763
6267
3.668
3,720
3.750
4,323
1.752
1.7119
1,823
1.910
2003
33
35
29
23
39
690
744
726
697
740
710
3.787
526
1.101
1,346
1 993
15,459
12,076
T3,496
14.711
3 19,M
$ 34.96 $19,076
$ 29.383 $ 24.976
(15,650)
(7.783)
(19,167)
112,6631
120.8491
121111
12.0481
11.2501
$ 115.3371
$ 16,9551 $ 121,2781
114.711 $ 122.0991
19.321
$ 21,254 $ 23,841
$ 28,421 $ 30,249
708
800
968
1.128
1,246
1,032
1.255
1.389
1.202
1,176
CITY OF OWASSO, OKLAHOMA
CHANGES IN NET
POSITION - continued
(LAST TEN YEARS)
(accrual basis of accounting)
(amounts expressed in thousands)
Bala 2019
zM
2031.
2M
Expemes
Govemmenlal Aclivilies:
General government
$ 4,726 $ 4.415 $ 4,785
$ 4,834 $ 9.006
PubBmafety
19,473 17,527
22,80.5
24,915
21.840
Community development
818 744
752
842
942
Recreation and culture
11560 1.617
1.882
1.901
1,965
Economlcdevelopment
426 456
476
471
449
Publcworlu
5.795 7.199 7.645
8,182
81105
Total governmental activities expenses
32.798 31.958
381345
41A45
42.207
Business -type .1wities:
Water
7,403 6.909
7,909
7.106
7,092
Wastewater
S,174 5.338
5,533
5.416
5.646
Sanifation
1,695 1,790
11938
1,921
1,889
Recycle center
190 182
233
293
256
Economic development
308
359
473
Galt course
1.453 11399
1.517
1.527
1.684
Total business -type activities es enses
151915 15.618
17.438
16.622
17.030
Total primary government expenses
$ 48,713 E 47:576 $ 55.789
$ 55,067 $ 59.237
Program Revenge
Govemmenlal acllvitles:
Charges forservices
Generalgovemment
$ 946 $ 678 $
603
$ 593 $
596
Public safety
2,816 3,058
2,903
2,561
2,655
Community development
0 55
38
330
451
Recreation and culture
139 94
93
103
127
Economic development
18 19
16
14
12
Publicworks
1.233 1,433
1,620
1,892
1.835
OperWing grants and contributions
2,834 2,947
3,587
6.196
6.700
Capital grants and contributions
2.337 2.308
2.915
799
2.965
Total governmental activism program revenues
10.423 10.592
11.775
12488
15341
Business -type activities:
Charges for services
Water
6,591 6,427
6,782
7.888
8.062
Wastewater
4,576 4.776
4.946
5,775
5,810
Sanitation
2,127 2,2111
2356
2577
2,558
Recycle center
36 19
17
33
69
Golfcoune
761 733
837
801
968
Capital grants and contributions
427 804
2.107
405
1,231
Total business-type activities program revenues
14.520 15.040
17.045
17.479
18.698
Total primary government program revenues
$ 2,1.943 $ 25.632 $
28.829
S 29.967 $ 34.039
Not (expense) revenge
Govemmenlal activities
)22375) 121,3661
126,570)
128.957)
(26865)
Business -type activities
11,3951 15781
13931
857
1.667
Total primary government net lexpemes )revenue
$ 123.P $ 121.9441 $ IVS&I
3 f28,1001 It 125.1981
General Revenues and other Changes in Net Posrton
Governmental activities
Tares
Sales tax
$ 33.752 $ 34.973 $ 36,600
$ 39,587 $ 43.553
Use tax
1.650 2423
3,175
4,239
4.581
franchise and public service loxes
1,193 1.198
1,179
1.110
1.285
cigarette/ tobacco tax
n/. n/o
n/o
al.
n/0.
Hotel traces
409 472
430
467
636
Alcohols: beverage lax
Intergovernmental
722 666
723
772
870
Investment Income
161 540
463
174
35
Mlscellanoous
269 662
467
547
1894
Transfers- Internal activity
3,864 12183 18701
14,KZ
148471
Total governmental activities
42020 53.117
42172
41.993
46.1307
Businesslype activities
Investment income
194 319
353
34
44
Transfers- intemalacBvlty
13.8641 (12.1831
BN
4.903
4.847
Total bulneo -type activities
13.6701 1118641
1.2M
4.937
4.891
Total primary government
$ 38.350 3 41,253 S 43.395
It 46.930 $
52898
Changes In Net Pesillen
Governmental acliviffes
191645 31.751
151602
13,036
21,142
Business -type ac8vilies
15,0651 112.4421
830
5.794
6.558
Total primary government
$ 14.580 19,309 $ I6,432
18830 $ 27.700
(Concluded)
CITY OF OWASSO, OKLAHOMA
CHANGES IN FUND BALANCE OF GOVERNMENTAL FUNDS
(LAST TEN YEARS)
(modified accrual basis of accounting)
(amounts expressed in thousands)
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
2013 2014 2015 2016 2017
$ 21,060 $ 23,157 $ 26,046 $ 31,154 $ 33,052
3.201 2,959 1,886 2,023 4,307
2,919 3,127 3,140 3,126 3,251
615 637 717 773 603
319 287 323 474 271
35 30 20 21 25
175 137 105 259 232
$ 28,324 $ 30,334 $ 32,237 $ 37,830 $ 41,741
$ 4,342 $ 4,603 $ 4,805 $ 3,933 $ 4,027
12545
13,422
12,546
13,978
16,392
701
825
638
701
764
839
1,052
323
858
328
325
357
1,054
1,265
11698
1,904
2,397
5,224
3.961
4,267
9:803
9,759
21
$ 24,147 $ 24.810 $ 24,408 $ 31,483 $ 34,809
$ 4,177 5,524 7,829 $ 6,347 $ 6,932
Other Financing Sources (Uses)
Leases (as lessee)
Transfers in 16,285 17,150 20,056 22,882 25,177
Transfers out (19,900) 121,770) (23,8331 (26,3161 (27,3401
Total Other Financing Sources (Uses) (3,6151 (4,6201 (3,7771 (3,4341 (2.163)
Net Change in Fund Balances
Fund Balance - Beginning of Year
Fund Balance - End of Year
Debt Service as a percentage of
noncopital expenditures
562
904
4,052
2,913
4,769
10,013
10,575
11,479
15,531
18,444
10,575
11,479
15,531
18,444
23,213
011% 0.00% 0.00% 0,00%s 0.00%
(Continued)
Source: Respective Fiscal Years' Flnanclal Statements -
Statement of Revenues, Expenditures, and Changes In Fund Balances -
Govemmental Funds
Prior to 2616 combined with General Government
Certain balances from the statements were combined for comparative purposes
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)
2018 2019 2020 2021 2022
Revenues
Taxes
$ 37,005
$ 39,147
$ 41,724
$ 45,685
$ 50,427
Intergovernmental
5,097
5,816
4,436
7,142
7,176
Charges for services
3,948
4,022
4,170
4,672
5,207
Fines and forfeitures
461
335
298
234
201
Licenses and permits
281
216
286
440
529
Investment income
145
479
431
154
15
Miscellaneous
773
847
209
291
1,670
Total Governmental Revenue
$ 47,710
$ 50,862
$ 51554
$ 58,618
$ 65,225
Expenditures
Current:
General government
$ 4,150
$ 3,761
$ 4,121
$ 4,159
$ 4,674
Public safety
18,312
18,635
19,934
20,825
22,142
Community development `
795
724
713
824
879
Recreation and culture
11103
11091
1,269
1,305
1,493
Economic development
420
451
455
468
484
Public works "
1,470
2,749
2,935
3,525
3,309
Capital outlay
22,121
27,091
18,923
T5,167
10,063
Debt service - principal
Total Governmental Expenditures
$ 48.371
$ 54,502
$ 48,350
$ 46,273
$ 43,044
Excess (deficiency) of revenues
over expenditures
$ (6611
$ (3.6401
$ 3.204
$ 12,345
$ 22.181
Other Financing Sources (Uses)
Leases (as lessee)
159
Transfers in
30,792
40,132
28,633
28,637
34,733
Transfers out
(26,955)
(27.9491
(29,5031
(33,5401
(39,5801
Total Other Financing Sources (Uses)
3,837
12,183
(8701
(4.9031
(4.6881
Net Change In Fund Balances
3,176
8,543
2,334
7,442
17,493
Fund Balance - Beginning of Year
23,213
26,389
34,932
37,266
44,708
Fund Balance - End of Year
26,389
$ 34,932
$ 37,266
44.708
62,201
Debt Service as a percentage of
noncopital expenditures 0.00% 000% 0.00% 0.00% 000 "
(Concluded)
Source: Respective Fiscal Years' Flnanclal Statements -
Statement of Revenues, Expenditures, and Changes In Fund Balances -
Govemmental Funds
Prior to 2016 combined with General Government
"Certain balances from the statements were combined for comparative purposes
S - FINANCIAL TRENDS Page 6
Source: Respective Fiscal Years' Financial Statements - Botance Sheaf Gavemmenfal Funds
• Pd., to FY 2017. this amaunf was reflected In "Other'
S - FINANCIAL TRENDS Page 7
CITY OF OWASSO, OKLAHOMA
FUND
BALANCE OF GOVERNMENTAL FUNDS
(LAST TEN YEARS)
(modl8ed accrual basis of accoun8ng)
(amounts expressed in thousands)
2013
2014 2015 2016 2017
2018
2019
2020
2021
2022
General Fund
Norependable
911
$ 1,074
$ 1,429
$ 1,124
Redrictadfor.
Public safety
9 10
71
34
53
Other
64
45
]2
8
12
71
Assigned
411
412 641 322
295
322
1.006
1,396
1,371
901
unasdgned
3.552
AIM 4.390 3.8.57
4.406
5.351
6:344
8.098
14.074
14,757
Tafal General Fund Balance
3.963
4.590 5.044 5,731
5.676
6,792
8.851
10.697
15.491
15.602
Other Governmental Funds
Nonspendable
$ 659
$ 458
$ 293
Economic development
963
1.131
1,334
11502
11700
2.063
Public safety
297
2]0 839 1,540
2090
3,049
4,184
5,357
5.333
7.029
Public works
1.744
1,844
2088
1,874
1.665
2.757
Capital projects
2.784
3.713 6,628 6.363
10.166
10,362
14.726
13.437
16,029
27,922
Other
6.
6 254 1.731
4
3
4
6
9
12
Committed:
Public safety
338
287 349 942
552
456
330
396
820
2178
Culture and recreation
205
Siam... man agement
1,260
11116 1.195 1.091
1,367
1,917
2.488
3.160
2306
3,669
Capital projech
961
1IM9 413 -
631
035
469
379
555
596
Total Fond Balance
6.612
6:889 10.487 12:713
17.537
19,597
26.081
26.569
29.217
46519
Total Govemmenlal Fund Balance
10.5]5
11.479 $ 15.531 $ 18,444 $ 23.213
$ 26.389
34.932
$ 37.266
44.]08
$ 62,201
Source: Respective Fiscal Years' Financial Statements - Botance Sheaf Gavemmenfal Funds
to FY 2017. this amaunf 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 City 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
551100's Vision Tax Recapture increase approved by voters began January 1, 2017
5 - REVENUE CAPACITY Page 8
City of Rogers
State of
Total - Tulsa
Total - Rogers
YEAR
Owasso
Tulsa County
County
Oklahoma
County
County
2022
4.050%
0.367%
1.833%
4.500%
8.917%
10.383%
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%
0367%
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%
1750%
4.500%
8.350%
9.250%
Sources: Oklahoma Tax Commission
The 1 %processing /admin fee paid to the State of Oklahoma out of the City 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
551100's Vision Tax Recapture increase approved by voters began January 1, 2017
5 - 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 Yeari F)rmnclal Statements - Government N7de Statement ofAcBviNas
5 -REVENUE CAPACITY Page 9
Fronchlse 6
Public Service
Year
Sales Tax
U,. Tax
Tax
Hotel Tax
Total
2022
$ 43.553
$ 4,581
$ 1,265
$ 636
$ 50,055
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
Source: Respective Fiscal Yeari F)rmnclal Statements - Government N7de Statement ofAcBviNas
5 -REVENUE CAPACITY Page 9
CITY OF OWASSO, OKLAHOMA
PRINCIPAL SALES TAX REMITTERS
CURRENT YEAR AND NINE YEARS AGO
June 30, 2022
S — REVENUE CAPACITY Page 10
' 2022
"2013
Percentage
Percentage
of Total
of Total
NAILS
Revenue
Revenue
CODE Sales Tax Remliter Amount
Remitted
Revenue Base
Base
Amount Remitted
Revenue Base
Base
4445 Retail Trade $
27,516,423 $
308.583,862
69%
$ 15,095,363
$ 177,175,622
729
72 Accommodation /Food Services
6,493,446
72,820,971
16%
3.064,321
35,966,197
15%
22 Utilities
1,594,694
17,863,750
4%
757,476
8,890,563
4%
42 Wholesale Trade
1,719,704
19.285.679
4%
614.371
7,210,927
37.
51 Information
624,774
7,006.549
2%
531,098
6,233.545
3%
All Other
1,759,920
19.736,683
43.
998,881
11,723,955
5%
$ 39,708.961 $ 445.317,494
100.00%
$ 21,061.509
$ 247.200,809
100.00%
Sources: Oklahoma Tax Comm /ufon
Gross Amount Reported Prior to Pmt of 0.5 %Retention to OTC
Gross Amount Reported Prior to Pmt of 1% Retention to OTC
S — REVENUE CAPACITY Page 10
CITY OF OWASSO, OKLAHOMA
PROGRAM REVENUE BY FUNCTION /PROGRAM
(LAST TEN YEARS)
(eternal basis of accoun8ng)
(amounh expressed in thousands)
Program Revenue
Govemmental activities:
Charges for services
General government
Public safety
Community development -
Recreation and culture
Economic development
Public works °
Operating grants and contributions
Capital grants and contribuilom
Total governmental activities program revenues
Business -type activities:
Charges forservices
Water
Wastewater
Sanitation
Recycle center
Golf course
Capital grants and contributions
Total business -type actvities program revenues
Total primary government program revenues
2g3 IZW 2015 2016 2017
$ 500 $ 970 $ 627 $ 655 $ 514
2,496 2.962 2.667 2885 3,208
2,060 1,754 1,753 3.446 509
1.786 12850 1.042 6.889 4.741
$ 7.750 $ 19.467 $ 7.MD 14.887 10.265
$ 5,340 $ 5.384 $ 5,222 $ 5,763 $ 6.260
3,468
3,720
3.750
4,002
4,323
1.752
1,789
1,823
11910
2.003
33
35
29
23
39
690
744
726
697
740
710
3.787
526
1.101
1.346
$ 11,993 15,459 12,076 $ 13.496 $ 14,711
19,743 34,926 19,076 28,333 24.976
Source: Respective Fiscal Years' 9nanclal Statements - Statement of AcRritles
Prior to 1016 combined with General Government
Certain balances from the statements were comh /ned for comparative purposes
5— REVENUE CAPACITY Page 11
CITY OF OWASSO, OKLAHOMA
PROGRAM REVENUE BY FUNCTION /PROGRAM - continued
(LAST TEN YEARS)
(accrual basis of accoun8ng)
(amounts expressed In thousands)
Program Revenue'
Govemmentol activities:
Charges for services
General government
Pudic safety
Community development'
Recreation and culture
Economic development
Public waft
Operating grants and contributions
Capital grants and contributions
Total governmental activities program revenues
Business -type activities:
Charges for services
Water
Wastewater
Sanitailon
Recycle center
Golf course
Capital grams and coninbutons
Total business -type activities program revenues
Total primary government program revenues
2018 2019 i43C 2021 2022
$ 946
$ 678
$ 603
$ 593
$ 596
2,816
3,050
2,904
2.561
2655
50
55
38
330
451
139
94
93
103
127
18
19
16
14
12
1,233
1433
1,620
11892
1.835
2,884
2,947
3,587
6,196
6.700
2,337
2308
2,914
799
2965
$ 10.423
$ 10,592
$ 11,775
12488
15,341 $ 6.591 $ 6,427 $ 6.782 $ 7,888
$ 8,062
4,578
4,776
4,946
5,775
51810
2,127
2,281
2,356
2,577
2,558
36
19
17
33
69
761
733
837
801
968
427
804
2107
405
1,231
14,520 $ 15,040 17,045 $ 17.479 $ 18,698
24,943 25,632 28,820 S 29,967 34,039
Source: Respective Fiscal Years' Financial Statements - Statement of Activities
May to 2016 comblus di with General Government
Certain balances from the statements were combined for comparative purpmes
S- REVENUE CAPACITY Page 12
2022
2021
2020
2019
2010
417
2016
2015
414
413
3 30.335,688
CITY OF OWASSO, OKLAHOMA
514,107 $ 66.131.057 E 13.900.717 $ 525308]0
S 06.937.217
60.4%
18.3%
359
0.14%
RATIO OF OUTSTANDING
3S.4".422
2.739,20
33,230.000
218529
71.78071
32,469,142
DEBT TO REVENUE
76896,775
51.1%
21.6%
6028
0.13%
332.451.921
LAST TEN YEARS
2.887.746
37,555,00
211882
M, 399, 971
33,201.015
39.1981956
June 30, 2022
54.3%
24.3%
1,53
0.19%
317.999,205
14,036.785
eudne -Type AcRv111es Debt
28.800,00
2S.087
42,901,429
4.500.228
33.413.41
66.885,838
57.5%
Told
1,42
0.19%
263731829
15.355.331
0.10muing
31.750.000
83.930
Prambm an
Oublandin9
Tolal NO
Telal
Net
09Mondng
Outstanding
Ouldandng
Deblasa
Told
YEAR
Holes Payable Nalea
Revenue Nuanced Iand, lan 8entl
OdsMntling
GovemmenfA
De as
Debt as
OeM pas
Pervenlage of
GavxnmenfA
34.0%
CITY OF OWASSO, OKLAHOMA
COMPUTATION OF LEGAL DEBT MARGIN
DEBT TO REVENUE
June30,2022
1013 3014 2015 2016 2017 3013 2019 20]0 2021 2023
Not ..d Vabalbo 111 3 226513 3 MOMS $ 236.009 $ 247.875 $ 261.285 3 274.662 $ 284.351 $ 296.993 $ 305.223 $ 320.761
Debt Ul l(2) 221651 2TA09 Mot 24.788 26.129 V466 28:435 29,699 30.522 31077
Total net debt subject to Will (3)
Total debtmv0ln $ 22.651 $ 23.009 3 23.601 $ 24.783 $ 26.129 $ 27,466 $ 20.435 $ 29.699 3 30522 3 32.077
Total net debt appllaade to Me
Source:
(1) Tuba Caunly yarmor6 MoOOa County Am..,- NOA .meal Vafualbn
f2) Mlcle 10. S.M.. 26.ONohema CamPoUMan - 1o%afNO Nseaed Valuaflon
(3) AMcle 10. Section 27, ONahoma Con.Mlaffan
S - DEBT CAPACITY Page 14
CITY OF OWASSO, OKLAHOMA
COMPUTATION OF DIRECT AND OVERLAPPING DEBT
June 30, 2022
Governmental Unit
Debt repaid with property taxes
Counties:
Tulsa County
Rogers County
Independent School District:
Owasso (V -18)
City Direct Debt
Total Direct and Overlapping Debt
Estimated
Percentage
Source: Tulsa County 6 Rogers County Assessoes Offices
Current year Information not yet available
(1) Net general bonded debt.
(2) Percentage based on net assessed value of property.
100%
$ 53,307,618
S DEBT CAPACITY Page 15
Applicableto
Estimated Share
Net Debt
City of Owasso
Applicable to City
Outstanding (1)
(2)
or Owasso
$ 97,045.128
4.5%
$ 4,327,618
2.9%
4,327,618
48,980,000
100%
48,980.000
48,980,000
Source: Tulsa County 6 Rogers County Assessoes Offices
Current year Information not yet available
(1) Net general bonded debt.
(2) Percentage based on net assessed value of property.
100% -
$ 53,307,618
S DEBT CAPACITY Page 15
SCHEDULE OF DEBT SERVICE COVERAGE REQUIREMENTS
CITY OF OWASSO, OKLAHOMA
For the fiscal year ended June 30, 2022
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
2002A,2009B,
2009C,2011
2013 SRF OWRB and 2019C
OPWA OPGA Loan Issues
$ 7,757,544 $ - $ 7,757,544
5,810,301
5,810,301
2,557,530
2,557,530
209,429
209,429
68,845
68,845
95,080
95,080
-967,854
967,854
21,324,789
21,324,789
37,823,518 967.854 38,791.372
478,251 -
478,251
1,150,163
1,150,163
4,377,606
4,377,606
2.399.984
2,399,984
1,434,170
1,434,170
1,516J21
1,516,121
9,840,174 1,516,121 11,356,295
$ 27.983.344 $ (548,2671 $ 27.435,077
$ 7,997.349
343%
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 an 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 Pubic Golf Authority have been included as "Gross Revenue Available' for
Debt Service in the 2002A, 20098, 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 Requlrements
G as Direct Available tar Wai Debt
YEAR Revenue Expenses Debt Service Service c.vesaae
2022
$ 38,791,372
$ 11,356,295
$ 27.435.077 $ 7,997.349
343.05%
2021
36.385.422
11,070,875
25.314,547
8.004458
316.24%
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;368,217
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
18,622026
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%
Source: Respective Yeaa' Financial Sfafemenis
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, 2022
Fiscal Year
Population
Yearly Change
Median Age
Median
Household
Income
2022
38,732
1.29%
Not Available
Not Available
2021
38,240
2.68%
34.00 $ 71,055
2020
37,241
0,937.
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
0.577.
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
• Source: 05 Census Baseau
•• Amount adjusted from prior year due to new daft
••• Source: Clly olOworro Economic pevelopmeMpnpafinen)
S- DEMOGRAPHIC AND ECONOMIC INFORMATION Page 18
CITY OF OWASSO, OKLAHOMA
PRINCIPAL EMPLOYERS
JUNE 30. 2022
S— DEMOGRAPHIC AND ECONOMIC INFORMATION Page 19
2021
2012
Percentage of
Percentage of
Total
Total
Employer
Type of Business
Employees
Rank
Employment
Employees
Rank
Employment
Saint Francis Health System
Health Care
10,528
1
1.06%
51500
4
0.55%
Ascension St. John
Health Care
6,650
2
0.67%
6,000
3
0.60%
Hillcrest Healthcare System
Health Care
61310
3
0.63%
2,500
8
0.25%
Tulsa Pubic Schools
Public Schoch
5,931
4
0.60%
6.500
2
0.65%
American Airflnes
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%
N/A
N/A
N/A
Alliance Holdings Group, LP
Coal Mining
2,438
8
0.24%
N/A
N/A
N/A
Broken Arrow Pubic Schools
Public.Schools
2.379
9
0.24%
2,500
8
025%
Bank of Oklahoma
Banking
2,288
10
0.2311.
2,500
8
0.25%
Tulsa Community College
Community College
2,230
I1
0.227
2,500
8
0.25%
Cherokee Nation Businesses
Business Services
11906
12
0.19%
N/A
N/A
N/A
Union Pubic School District
Public Schools
11900
13
0.19%
2,500
8
0.25%
Spirit Aerosysiems Inc
N/A
3.000
6
0.30%
Caprock Pipeline Company
31000
6
0.30%
Baker Hughes Oilfield Operotioms
2,500
8
0.25%
54,788
5.50%
50,000
5.02%
Source: Tulsa Regional ChamberEconomlc Proflfe
Note: InformoNon Is based on the cafendaryear.
DEMOGRAPHIC AND ECONOMIC INFORMATION Page 19
Source: Regionirack 2022 Owasso Economic Outlook
Information based on a calendar year 2022 not yet available
S - DEMOGRAPHIC AND ECONOMIC INFORMATION Page 20
CITY OF OWASSO, OKLAHOMA
Bank Deposits
LAST TEN YEARS
Owasso Bank
Year
Deposits
Growth
2021
$ 1,133,600,000
8.50%
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
1.52%
2015
663,200,000
7.30%
2014
618,100,000
2.18%
2013
604,900,000
4.01%
Source: Regionirack 2022 Owasso Economic Outlook
Information based on a calendar year 2022 not yet available
S - DEMOGRAPHIC AND ECONOMIC INFORMATION Page 20
CITY OF OWASSO, OKLAHOMA
BUILDING PERMIT HISTORY
LAST TEN YEARS
JUNE 30, 2022
Year
Commercial
Permits
Commercial
Value
Residential
Permits
Residential
Value
Multi- Family
Permits*
Multi - Family
Values
2022
28
$ 45,106,322
252
$ 31,905,795
619
$ 79,494,792
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
Nawcabgoryln 2017, pdwyeon ass Includedln Res12en0a1 lolals
Soame: City at Owaua Cammunly Development
Intwma ion D based as a 0scal yeas.
S DEMOGRAPHIC AND ECONOMIC INFORMATION Page 21
CITY OF OWASSO, OKLAHOMA
PUBLIC SCHOOL INFORMATION
LAST TEN YEARS
JUNE 30, 2022
Year Est. Enrollment Age Number of Est. Percent of Nigh
4 -17 Elementary Schools Schaal Graduates
2022
9,656
10
Not Available
2021
9,035
10
Not Available
2020
9,782
94.0%
2019
9.629
9
92.0%
2018
9,730
8
98.5%
2017
9.737
8
99.09,
2016
9,678
8
96.0%
2015
9,651
8
98.0%
2014
9,578
8
98.0%
2013
9.445
8
95.0%
Source. Annual Reports submitted by the Owasso Public School district to the
OWahoma State Department of Education
S- DEMOGRAPHIC AND ECONOMIC INFORMATION Page 22
CITY OF OWASSO, OKLAHOMA
UNEMPLOYMENT RATE
LAST TEN YEARS
JUNE 30, 2022
Unemployment Unemployment Unemployment
Year Rafe - Owasso Rate - Oklahoma Rafe - United
States
2022
2.50%
130%
3.70%
2021
3.50%
4.30%
5.80%
2020
5.60%
6.107.
6.90%
2019
230%
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%
5.107
2014
3.30%
4.30%
6.20%
2013
4.00%
5.20%
7.30%
Save: Bvreav of Labor SlalbMCa and Owaue Economic O.H..k
S -DEMOGRAPHIC AND ECONOMIC INFORMATION Page 23
CITY OF OWASSO, OKLAHOMA
SELECTED OPERATING INDICATORS BY FUNCTION /PROGRAM
LAST NINE YEARS
Source: City Ordinance
S- OPERATING INFORMATION Page 28
CITY OF OWASSO
UTILITY AUTHORITY
WATER AND SEWER RATES
(Last Ten Years)
(Residential - Inside City Limits)
Water
Sewer
monfrily
muse none per I,uuu monthly
Base
KcTe per I,UW
Fiscal Year
Rate Gallons
Rate
Gallons
2022 $
13.08 $ 7.81 $ 10.51
$ 4.58
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
Source: City Ordinance
S- OPERATING INFORMATION Page 28
CITY OF OWASSO
UTILITY AUTHORITY
WATER REVENUE BY CUSTOMER TYPE
(Last Tm Years)
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Residential
$ 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
$ 4,510,236
Commercial
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
2,757,031
Other
347,516
284,487
247,846
336,234
314,529
445,520
488,504
384,308
583,923
490.277
Total
$ 5,062,458
$ 5,090.121
$ 4,948,736
$ 5,515,781
$ 5,979,647
$ 6,248,534
$ 6,106,293
$ 6,448,120
$ 7,632976
$ 7,757,544
Source:City of owaxro 1Jh1ih78lwnCD pa4menf
5 - OPERATING INFORMATION Page 29
Accumulated Depreciation /NnwthaHOn
Ratio at Accusulated DepreciaBOn /Amatiiaflan to
Total Capital Assets
Ratio of Accumulated DepreciationAmodlio8on to
Degeclable /Amorfa0b1e Capital Assets
$ 74.877.280 5 84,132,412 $ 91.990,991 $ 99,731,554 1 108,013,523 5 117,3P,739 5 126.04.30 $ MAMIE $ 10,880,499 $ 150,529,445
33%
34%
36%
CITY OF OWASSO, OKLAHOMA
37%
37%
39%
am
37%
39%
41%
417.
CAPITAL ASSET CONDITION
45%
(LAST TEN YEARS)
2013
2014
1015 2DI6 2017
2018
2019
2030
2021
1032
Talal Capital Aael COS1
$227.627b80
$250.183,492
4257,543293 $274,467.491 $788.836,198
$312, 998,531
$ 340.831,713
4365,430.180
4385.372.360
$411694595
NonDepmdable /Amorthable Capital AUeh
18118723
23,170.857
21,452,471 31,418,724 27,339598
41.107.740
0330]43
A M.464
61,962,655
82592,340
Mat Dw.re (able /Amoft ble Capitol Asseh
$709,519,457
5227412.05
$236,090A22 $243,048,767 $261,49SAM
$27L8MNI
$281.500.970
$316.927.716
$323.409,705
$336102255
Accumulated Depreciation /NnwthaHOn
Ratio at Accusulated DepreciaBOn /Amatiiaflan to
Total Capital Assets
Ratio of Accumulated DepreciationAmodlio8on to
Degeclable /Amorfa0b1e Capital Assets
$ 74.877.280 5 84,132,412 $ 91.990,991 $ 99,731,554 1 108,013,523 5 117,3P,739 5 126.04.30 $ MAMIE $ 10,880,499 $ 150,529,445
33%
34%
36%
36%
37%
37%
39%
am
37%
39%
41%
417.
43%
45%
Ratio of Accumulated
Depreciation /Amortization to Total
Capital Assets
98% 38%
38% 36%- 37% 37% )1% 1
37% 36%
36% am - am
3S%
34% I
]01] 2014 3015 216 A17 A13 Alf ]070 =1 2072
Ratio of Accumulated
Depreciation /Amortization to
Depreciable /Amortizable Capital Assets
60%
607. 992 41% 41% 43% 492 Am 46% 0%
40% 36% 372
0% I I I
0%
2013 9114 2015 2016 ]011 2018 2019 2020 2031 ]033
37% 38%
43% 46%
38%
48%
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 Muncipal 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
OWRB
._.Oklahoma Water Resources Board
RAN
...Revenue Anticipation Note
SRF
...State Revolving Fund
UAAL
._.Unfunded Actuarial Accrued Liability
S - OPERATING INFORMATION Page 31
Page intentionally leff blank
.Ma Is'"MUMNW-PA
Annual Comprehensive
Financial Report
City of Owasso, Oklahoma
Year Ended June 30, 2022
BT&CON RA.
Certified Public Accountants
CITY OF OWASSO, OKLAHOMA
SINGLE AUDIT REPORTS AND
SUPPLEMENTARY SCHEDULES
YEAR ENDED JUNE 30, 2022
CITY OF OWASSO, OKLAHOMA
SINGLE AUDIT REPORTS AND SUPPLEMENTARY SCHEDULES
Year Ended June 30, 2022
TABLE OF CONTENTS
The City of Owasso, Oklahoma financial statements and related notes for the
year ended June 30, 2022 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 7
Schedule of Findings and Questioned Costs 8-9
(9E Co:
Certified Public Accaunranrs
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, 2022, 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 20, 2022.
Report on 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 infernal 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 or significant deficiencies may exist that were not identified.
An Independently Owned Member, RSM US Alliance
RSM US Alliance member firms are separate and Independent businesses and legal entitles that are responsible for their own acts and omissions, and each are separate and
independent from RSM US LLP. RSM US LLP is the U,S, member firm of RSM International. a global network of Independent audit, tax. and consulting firms. Members of RSM US
Alliance have access to RSM International resources through RSM US LLP but are not member firms of RSM International.
W
O_
N
z
3
0
0
0
m
v
z
m
0
0
a
V
w
d
w
A
N
ti
0
m
m
0
0
in
W
0
in
N
V
m
N
w
m
m
a
0
V
N
n
O
Report on 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 20, 2022
Topeka, Kansas
-2-
BT &,I I A-
(9E Co
Certified Public Acrami rants
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
Opinion on the Major Program
We have audited the City of Owasso, Oklahoma's (the City) compliance with the types of compliance
requirements identified as subject to audit 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, 2022. The City's
major federal program is identified in the summary of auditors' results section of the accompanying
schedule of findings and questioned costs.
In our opinion, the City complied, in all material respects, with the compliance requirements referred to
above that could have a direct and material effect on its major federal program for the year ended
June 30, 2022.
Basis for Opinion on the Major Federal Program
We conducted our audit of compliance in accordance with auditing standards generally accepted in
the United States of America (GRAS); the standards applicable to financial audits contained in
Government Auditing Standards issued by the Comptroller General of the United States (Government
Auditing Standards); 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). Our responsibilities under those standards and the Uniform Guidance are further described in
the Auditors' Responsibilities for the Audit of Compliance section of our report.
We are required to be independent of the City and to meet our other ethical responsibilities, in
accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence
we have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for the
major federal program. Our audit does not provide a legal determination of the City's compliance with
the compliance requirements referred to above.
Responsibilities of Management for Compliance
Management is responsible for compliance with the requirements referred to above and for the design,
implementation, and maintenance of effective internal control over compliance with the requirements
of laws, statutes, regulations, rules and provisions of contracts or grant agreements applicable to the City's
federal programs.
An Independently Owned Member, RSM US Alliance
RSM US Alliance member firms are separate and independent businesses and legal entities that are responsible For their own acts and omissions, and each are separate and
independent from RSM US LLP. RSM US LLP is the U.S. member firm of RSM International, a global network of Independent audit tax, and consulting firms. Members of RSM US
Alliance have access to RSM International resources through RSM US LLP but am not member firms of RSM International.
a
w
_O
to
x
r=
0
0
0
0
F
a
x
N
m
m
m
0
a
V
W
N
a
w
V
0
m
0
0
N
w
O
m
m
w
w
V
m
m
c
a
0
n
II
w
n
0
Auditors' Responsibilities for the Audit of Compliance
Our objectives are to obtain reasonable assurance about whether material noncompliance with the
compliance requirements referred to above occurred, whether due to fraud or error, and express an
opinion on the City's compliance based on our audit. Reasonable assurance is a high level of assurance
but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance
with GAAS, Government Auditing Standards, and the Uniform Guidance will always detect material
noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is
higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control. Noncompliance with the compliance requirements
referred to above is considered material, if there is a substantial likelihood that, individually or in the
aggregate, it would influence the judgment made by a reasonable user of the report on compliance
about the City's compliance with the requirements of the major federal program as a whole. In
performing an audit in accordance with GAAS, Government Auditing Standards, and the Uniform
Guidance, we
• exercise professional judgment and maintain professional skepticism throughout the audit.
• identify and assess the risks of material noncompliance, whether due to fraud or error, and design
and perform audit procedures responsive to those risks. Such procedures include examining, on a
test basis, evidence regarding the City's compliance with the compliance requirements referred
to above and performing such other procedures as we considered necessary in the
circumstances.
• obtain an understanding of the City's internal control over compliance relevant to the audit in
order to design audit procedures that are appropriate in the circumstances 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 the City's internal control over
compliance. Accordingly, no such opinion is expressed.
We are required to communicate with those charged with governance regarding, among other matters,
the planned scope and timing of the audit and any significant deficiencies and material weaknesses in
internal control over compliance that we identified during the audit.
Report on 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
Auditors' Responsibilities for the Audit of Compliance section above and was not designed to identify all
deficiencies in internal control over compliance that might be material weaknesses or significant
deficiencies in internal control over compliance. Given these limitations, during our audit, we did not
identify any deficiencies in internal control over compliance that we consider to be material weaknesses,
-4-
as defined above. However, material weaknesses or significant deficiencies in internal control over
compliance may exist that were not identified. Our audit was not designed for the purpose of expressing
an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is
expressed.
The purpose of this report on internal control over compliance is solely to describe the scope of our testing
of internal control over compliance and the results of that testing based on the requirements of the
Uniform Guidance. Accordingly, this report is not suitable for any other purpose.
Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance
We have audited the financial statements of the City as of and for the year ended June 30, 2022, and
have issued our report thereon dated December 20, 2022, which contained an unmodified opinion on
those financial statements. Our audit was performed for the purpose of forming an opinion on the
financial statements as a whole.
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 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 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
account and other records used to prepare the financial statements or to the financial statements
themselves, and other additional procedures in accordance with auditing standards generally accepted
in the United States of America. In our opinion, the schedule of expenditures of federal awards is fairly
stated in all material respects in relation to the financial statements as a whole.
December20, 2022
Topeka, Kansas
-5-
BT 6, 1 P. 14-
CITY OF OWASSO, OKLAHOMA
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Year Ended June 30, 2022
See accompanying notes to schedule of
expenditures of federal awards.
9.11
Assistance
Federal Grantor /Pass - Through
Grant
Listing
Grantor /Program Title
Number
Number
Expenditures
U.S. Department of Housing and Urban Development:
CDBG - Entitlement Grants Cluster:
Passed through Oklahoma Department of Commerce:
Community Development Block Grant - FY20
CDBG B- 20 -UC -40 -0001
14.218
$ 177,800
Community Development Block Grant - FY21
CDBG B- 21- UC- 40-0001
14.218
272,303
Total CDBG - Entitlement Grants Cluster
450,103
Total U.S. Department of Housing and Urban
Development
450.103
U.S. Department of Justice:
Oklahoma Internet Crimes Against Children Task Force
None
16.543
3,355
Bulletproof Vest Partnership Grant FY2020
FY2020 BPV
16.607
231
Bulletproof Vest Partnership Grant FY2021
FY2021 BPV
16.607
5,478
Public Safety Partnership and Community Policing Grants
2020UMWX0161
16.710
205,325
Justice Assistance Grant
JAG -LLE- 2021 - Owasso CI -00021
16.738
7,500
Total U.S. Department of Justice
221,889
U.S. Department of Transportation:
Passed through the Oklahoma Highway Safety Office:
Highway Safety Cluster:
State and Community Highway Safety -FY21 (OT(
PT- 21 -03 -22 -16
20.600
10,469
State and Community Highway Safety - FY22 (OT)
PT- 21 -03 -22 -17
20.600
65,443
Total Highway Safety Cluster
75,912
Total U.S. Department of Transportation
75,912
U.S. Department of the Treasury:
Passed through State of Oklahoma:
COVID -19 - Coronavirus State and Local Fiscal
Recovery Funds
None
21.027
2.133,131
U.S. Department of Homeland Security:
Winter Storm'21 - Emergency Water Extrication
FEMA -DR -4587
97.036
76,891
COVID -19 - Assistance to Firefighters Grants -
COVID 19 Supplemental
DHS- 20- GPD -044 -00 -99
97.044
12,684
Fire Department - SAFER Grant
EMW- 2017 -FH -00156
97.083
129,344
Total U.S. Department of Homeland Security
218,919
Total expenditures of federal awards
$ 3,099,954
See accompanying notes to schedule of
expenditures of federal awards.
9.11
CITY OF OWASSO, OKLAHOMA
NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
June 30, 2022
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, 2022. 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, 2022
Section I - Summary of Independent Auditors' Results
Financial Statements
Type of auditors' report issued
Internal control over financial reporting:
Material weaknesses identified
Significant deficiencies identified that are not
considered to be material weaknesses
Noncompliance material to financial statements noted
Federal Awards
Type of auditors' report issued on compliance for major programs
Internal control over major programs:
Material weaknesses identified
Significant deficiencies identified that are not
considered to be material weaknesses
Any audit findings disclosed that are required to be reported in
accordance with Section 2 CFR 200.516(a)
Identification of major programs:
Assistance Listing Number
21.027
Unmodified
None
None reported
None
Unmodified
None
None reported
None
Name of Federal Program
Coronavirus State and Local Fiscal Recovery Funds
Dollar threshold used to distinguish between type A and
type B programs
Auditee qualified as a low -risk auditee
1-3
$ 750,000
Yes
CITY OF OWASSO, OKLAHOMA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
(Continued)
Section H - Financial Statement Findings
None.
Section III - Federal Award Findings and Questioned Costs
None.
12
Page intentionally Jeff blank