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Home My WebLink About2024.01.16_City Council AgendaPUBLIC NOTICE OF THE MEETING OF THE OWASSO CITY COUNCIL Council Chambers Old Central Building 109 North Birch, Owasso, OK Tuesday, January 16, 2024 - 6:30 PM NOTE: APPROPRIATE ACTION may include, but is not limited to: acknowledging, affirming, amending, approving, authorizing, awarding, denying, postponing, or tabling. AGENDA 1. Call to Order- Mayor Kelly Lewis RECEIVED 2. Invocation - Reverend Dr. Andrew Rankin of Freedom Church JAN 12 2024 3. Flag Salute City Clerk's Office 4. Roll Call 5. Presentation of the Character Trait of Positivity -Michele Dempster, Human Resources Director 6. Presentation of the Employee of the Quarter- Warren Lehr 7. 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 9, 2024, Regular Meeting B. Approve claims C. Approve normal retirement benefits for Deborah Grace 8. Consideration and appropriate action relating to items removed from the Consent Agenda 9. Consideration and appropriate action relating to a request for a final plat for Lot 4, Block 1 of Morrow Commercial, containing approximately 0.918 acres located at 13133 East 116th Street North Wendy Kramer Staff recommends approval of the final plat for Lot 4, Block 1 of Morrow Commercial. 10. Consideration and appropriate action relating to a utility relocation agreement for the East 96th Street North from North 119th East Avenue to North 1291h East Avenue Roadway Improvements Dwayne Henderson Staff recommends approval of the Utility Relocation Agreement with Washington County Rural Water District #3 and authorization to execute all necessary documents. 11. Consideration and appropriate action relating to an amendment to the engineering agreement for the East 96th Street North from North 119th East Avenue to North 129th East Avenue Roadway Improvements Dwayne Henderson Staff recommends approval of Amendment No. 4 to the Agreement for Engineering Services with BKL, Inc., of Tulsa, Oklahoma, in the amount of $21,500.00, and authorization to execute all necessary documents. 12. Consideration and appropriate action relating to a funding agreement for the East 86th Street North from North Main Street to Garnett Road Widening Project Dwayne Henderson Staff recommends approval of the Project Maintenance, Financing and Right -of -Way Agreement between the City of Owasso and Oklahoma Department of Transportation (ODOT) in the amount of $7,107,045.00 (ODOT's share being $3,000,000.00) and authorization to execute all necessary documents. Owasso City Council January 16, 2024 Page 2 13. Consideration and appropriate action relating to the acquisition of right -of -way for the East 96th Street North and North 145th East Avenue Intersection Improvement Project Roger Stevens Staff recommends authorization for payment in the amount of $122,355.00 to Calvary Missionary Baptist Church, Inc., for the acquisition of right -of -way and compensation for damages located at 9609 North 145th East Avenue. 14. Consideration and appropriate action relating to an agreement for the purpose of managing the City's youth baseball activities utilizing City -owned facilities Larry Langford Staff recommends authorization for the City Manager to execute an agreement with Union Kids Baseball, D.B.A. Owasso Youth Baseball. 15. Report from City Manager 16. Report from City Attorney 17. Report from City Councilors 18. Official Notices (documents for acknowledgment of receipt or information only, no discussion or action will be taken) • Health Care Self- Insurance Claims - dated as of January 10, 2024 • Monthly Budget Status Report - December 2023 • Change Order No. 13 executed by the City Manager or designee for the Fire Station No. 1 and Fire Station No. 2 Renovation Projects • Letter dated January 9, 2024 from the Owasso Audit Committee and the City's Annual Comprehensive Financial Report and Audit for fiscal year ending June 30, 2023 19. New Business (New Business is any item of business which could not have been foreseen at the time of posting of the agenda) 20. Adjournment Notice of Public Meeting filed in the office of the City Clerk on Friday, December 8, 2023, and the Agenda posted at City Hall, 200 South Main Street, at 5 00 pm on Friday, Janu ory,12, 2024. M. Stevens, City Clerk The City of Owasso encourages citizen participation. To request d'n accommodation due to a disability, contact the City Clerk prior to the scheduled meeting by phone 918- 376 -1502 or by email to istevens@citvofowasso.com OWASSO CITY COUNCIL, PUBLIC WORKS AUTHORITY, AND PUBLIC GOLF AUTHORITY MINUTES OF JOINT REGULAR MEETING TUESDAY, JANUARY 9, 2024 The Owasso City Council, Owasso Public Works Authority (OPWA), and Owasso Public Golf Authority (OPGA) met in a joint regular meeting on Tuesday, January 9, 2024, in the Council Chambers at Old Central, 109 North Birch Street, Owasso, Oklahoma, per the Notice of Public Meeting filed Friday, December 8, 2023; 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 Friday, January 5, 2024. 1. Call to Order - Mayor /Chair Kelly Lewis called the meeting to order at 6:00 pm. 2. Roll Call - A quorum was declared present. Present Absent Mayor /Chair- Kelly Lewis None Vice Mayor /Vice Chair - Alvin Fruga Councilor /Trustee - Doug Bonebrake Councilor /Trustee - Lyndell Dunn Councilor /Trustee - Paul Loving Staff: City /Authority Manager- Warren Lehr; Assistant City /Authority Manager - Chris Garrett; City /Authority Attorney - Julie Lombardi 3. Presentation and discussion relating to the Fiscal Year 2022 -2023 Audit and Annual Comprehensive Financial Report (City Council) Carly Novozinsky read a letter from Jack Murray, Vice Chair of the Audit Committee, into the record. Councilor /Trustee Bonebrake reported on the Audit Committee meeting and discussion was held. 4. Presentation and discussion relating to a request for a final plat for Morrow Commercial, approximately 0.918 acres located at 13133 East 1161h Street North (City Council) Wendy Kramer presented the item and discussion was held. It was further explained this item will be placed on the January 16, 2024, City Council agenda for consideration and action. 5. Consideration and appropriate action relating to the Consent Agenda. (All matters listed under "Consent" are considered by the City Council /Trustees to be routine and will be enacted by one motion. Any Councilor /Trustee may, however, remove an item from the Consent Agenda by request. A motion to adopt the Consent Agenda is non - debatable.) A. Approve City Council minutes - December 19, 2023, Regular Meeting B. Approve OPWA minutes - December 19, 2023, Regular Meeting C. Approve OPGA minutes - December 19, 2023, Regular Meeting D. Approve claims - City Council, OPWA, OPGA E. Accept the Hale Acres Waterline Replacement Project and authorize final payment to Stronghand LLC, of Tulsa, Oklahoma, in the amount of $16,335.79 - City Council, OPWA Mr. Bonebrake moved, seconded by Mr. Dunn, to approve the Consent Agenda as presented, with City Council claims totaling $933,419.11, OPWA claims totaling $933,419.11, and OPGA claims totaling $41,464.41. YEA: Bonebrake, Dunn, Loving, Fruga, Lewis NAY: None Motion carried: 5 -0 6. Consideration and appropriate action relating to Resolution 2024 -01, amending Section III(A)(1) Development Project Assistance and Section III(B)(2) Small Business Enhancement of the Policy Guide for implementation of the Owasso Redbud District Project Plan, Tax Increment Financing District No. 1 (City Council) Chris Garrett presented the item recommending approval of Resolution 2024 -01. Mr. Loving moved, seconded by Mr. Bonebrake, to approve Resolution 2024 -01, as recommended. YEA: Bonebrake, Dunn, Loving, Fruga, Lewis NAY: None Motion carried: 5 -0 Owasso City Council, OPWA & OPGA January 9, 2024 Page 2 Consideration and appropriate action relating to bids received for the East 96th Street North from North 119th East Avenue to North 129th East Avenue Roadway Improvements (City Council) Dwayne Henderson presented the item, recommending rejection of all bids received for the project. After discussion, Mr. Bonebrake moved, seconded by Mr. Dunn, to reject all bids, as recommended. YEA: Bonebrake, Dunn, Loving, Fruga, Lewis NAY: None Motion carried: 5 -0 B. Consideration and appropriate action relating to bids received for the Ranch Creek Interceptor Improvement Project from East 96th Street North to East 116th Street North (OPWA) Dwayne Henderson presented the item, recommending to award the construction contract to Timber Wolf Excavating, LLC, of Broken Arrow, Oklahoma, in the amount of $6,297,560.00 and authorization to execute all necessary documents. After discussion, Mr. Dunn moved, seconded by Mr. Bonebrake, to award the contract and authorize execution of all necessary documents, as recommended. YEA: Bonebrake, Dunn, Loving, Fruga, Lewis NAY: None Motion carried: 5 -0 9. Consideration and appropriate action relating to bids received for the Elm Creek Sanitary Sewer Interceptor Rehabilitation Project (OPWA) Dwayne Henderson presented the item, recommending to award the construction contract to Insituform Technologies, LLC, of Chesterfield, Missouri, in the amount of $1,182,640.00 and authorization to execute all necessary documents. After discussion, Mr. Bonebrake moved, seconded by Mr. Dunn, to award the contract and authorize execution of all necessary documents, as recommended. YEA: Bonebrake, Dunn, Loving, Frugo, Lewis NAY: None Motion carried: 5 -0 10. Consideration and appropriate action relating to a Small Business Enhancement Agreement for Development Project Assistance in the Owasso Redbud District Project Plan, Tax Increment Financing District No. 1 (OPWA) Carly Novozinsky presented the item, recommending approval and execution of the agreement with Urban Owasso and authorization for payment in the amount of $4,580.84 for the addition of business signage, decorative roofing, awning, and fascia improvements located at 129 South Main Street. After discussion, Mr. Bonebrake moved, seconded by Ms. Lewis, to approve the agreement and authorize payment, as recommended. YEA: Bonebrake, Dunn, Loving, Fruga, Lewis NAY: None Motion carried: 5 -0 11. Discussion relating to City /Authority Manager items A. Monthly sales tax report and revenue outlook B. Monthly Public Works project status report Warren Lehr introduced Carly Novozinsky to present item A and Roger Stevens to present item B. 12. City Councilor /Trustee comments and inquiries Councilor /Trustee Bonebrake commented on his tour of the Wastewater Treatment Plant. 13. Official Notices - The Mayor /Chair acknowledged receipt of the following: • General Fund Payroll Payment Report - Pay Period Ending Date December 16, 2023, and December 30, 2023 • Owasso Public Works Authority Payroll Payment Report- Pay Period Ending Date December 16, 2023, and December 30, 2023 • Owasso Public Golf Authority Payroll Payment Report - Pay Period Ending Date December 16, 2023, and December 30, 2023 • Health Care Self - Insurance Claims - dated as of December 29, 2023 • Oklahoma Department of Environmental Quality Permit No. SL000072230964 Sanitary Sewer Line for Phase 2 (Larkin Bailey Foundation) Facility No. S -21310 Owasso City Council, OPWA & OPGA January 9, 2024 Page 3 14. New Business - None 15. Adjournment Mr. Loving moved, seconded by Mr. Bonebrake, to adjourn the meeting. YEA: Bonebrake, Dunn, Loving, Fruga, Lewis NAY: None Motion carried: 5 -0 The meeting adjourned at 6:45 pm. Kelly Lewis, Mayor /Chair Juliann M. Stevens, City Clerk Fund 01 GENERAL Claims List - 01/16/2024 Vendor Name Payable Description Payment Amount BLUE ENERGY FUELS LLC CNG FUEL CHARGES DEC $32.07 FLEETCOR TECHNOLOGIES FUEL CHARGES DEC 23 $60.70 JPMORGAN CHASE BANK HOME DEPOT -DOOR KNOB $47.97 JPMORGAN CHASE BANK LOWES -ELECT REPAIR $36.01 JPMORGAN CHASE BANK LOWES- TOILET REPAIR $23.46 JPMORGAN CHASE BANK OOP- SUPPLIES $11.35 UNIFIRST HOLDINGS LP BUILD MAINT UNIFORM $28.72 BUILDING MAINTENANCE -Total $240.28 FLEETCOR TECHNOLOGIES FUEL CHARGES DEC 23 $119.42 JPMORGAN CHASE BANK AMAZON- REFUND ($58.21) JPMORGAN CHASE BANK AMAZON- SUPPLIES $132.54 JPMORGAN CHASE BANK MAGNUM ELECT - SUPPLIES $308.61 JPMORGAN CHASE BANK TOMMYS -CAR WASH $29.99 JPMORGAN CHASE BANK WATERSTONE- UNIFORM $28.25 JPMORGAN CHASE BANK WILL ROGERS -K9 MEDICA $287.15 JPMORGAN CHASE BANK ZOETIS- SUPPLIES $119.00 GEN ANIMAL CONTROL -Total $966.75 UNIFIRST HOLDINGS LP UNIFORM SERVICES $9.74 GEN CEMETERY -Total $9.74 JPMORGAN CHASE BANK HOME DEPOT - ADHESIVE $26.00 JPMORGAN CHASE BANK HOME DEPOT - REFUND ($760.32) JPMORGAN CHASE BANK LOWES -DOOR THRESHOLD $17.27 JPMORGAN CHASE BANK LOWES - FLOORING FILLER $33.41 SUMNERONE INC COPIER $228.80 GEN COMMUNITY CENTER -Total ($454.84) FLEETCOR TECHNOLOGIES FUEL CHARGES DEC 23 $221.75 TULSA COUNTY CLERK TULSA COUNTY FILINGS $18.00 GEN COMMUNITY DEVELOPMENT -Total $239.75 FLEETCOR TECHNOLOGIES FUEL CHARGES DEC 23 $17.48 LEE BHM CORP PUBLICATIONS $37.92 GEN CULTURE & RECREATION -Total $55.40 AT &T PHONE SERVICE $3.35 FLEETCOR TECHNOLOGIES FUEL CHARGES DEC 23 $25.47 VERDIGRIS VALLEY ELECTRIC COOP STORM SIRENS $125.83 GEN EMERG PREPAREDNESS -Total $154.65 FLEETCOR TECHNOLOGIES FUEL CHARGES DEC 23 $201.84 UNIFIRST HOLDINGS LP UNIFORM SERVICES $21.99 GEN ENGINEERING -Total $223.83 JPMORGAN CHASE BANK ODP -PINK COPY PAPER $23.10 GEN FINANCE -Total $23.10 1 Fund 01 GENERAL Claims List - 01/16/2024 Vendor Name AT&T ELIZABETH ANNE CHILDS FLEETCOR TECHNOLOGIES KEN RAY UNDERWOOD LIMESTONE CONSTRUCTION LLC PROSTAR SERVICES INC SUMNERONE INC SUMNERONE INC TULSA COUNTY CLERK Payable Description Payment Amount PHONE SERVICE $10.06 LEGAL SERVICES $1,080.00 FUEL CHARGES DEC 23 $31.52 LEGAL SERVICE FEES $1,500.00 PAINT CHAMBER OF COMM $6,990.00 COFFEE - CITY HALL $156.89 DOWNSTAIRS COPIER $171.68 UPSTAIRS COPIER $401.07 TULSA COUNTY FILINGS $22.00 GEN GENERAL GOVERNMENT -Total $10,363.22 JPMORGAN CHASE BANK SUNDANCE -PAPER $235.80 GEN HR -CHAR INITIATIVE -Total $235.80 AMERICANCHECKED INC ATTN: BILLING PE BACKGROUND CHECKS $64.10 JPMORGAN CHASE BANK FACEBOOK- ADVERTISE $37.19 JPMORGAN CHASE BANK INDEED- ADVERTISE $481.35 JPMORGAN CHASE BANK INDEED - SUBSCRIPTION $120.00 JPMORGAN CHASE BANK JIT- TRAINING $157.50 JPMORGAN CHASE BANK ODP- SUPPLIES $42,99 JPMORGAN CHASE BANK STRATA - MAGAZINE $1,096.71 GEN HUMAN RESOURCES -Total $1,999.84 JPMORGAN CHASE BANK AMAZON - NETWORK CARDS $108.92 JPMORGAN CHASE BANK BEST BUY -MODEM $159.99 JPMORGAN CHASE BANK COX - INTERNET $1,663.02 JPMORGAN CHASE BANK SAMS -WORK BENCH $259.94 RAMUNDSEN SUPERIOR HOLDINGS ANNUAL LICENSE RENEW $5,447.17 GEN INFORMATION TECH -Total $7,639.04 FLEETCOR TECHNOLOGIES FUEL CHARGES DEC 23 $26.15 JPMORGAN CHASE BANK MEETING EXP 01/03 $16.15 GEN MANAGERIAL -Total $42.30 JPMORGAN CHASE BANK AMAZON- SUPPLIES $37.00 JPMORGAN CHASE BANK TYLER USER- CONFERENCE $1,090.00 OKLAHOMA STATE UNIVERSITY OMCCA PROGRAM $20.00 TYLER TECHNOLOGIES, INC. TRAINING $520.00 YOUTH SERVICES OF TULSA FY24 YOUTH COURT $4,125.00 GEN MUNICIPAL COURT -Total $5,792.00 BLUE ENERGY FUELS LLC CNG FUEL CHARGES DEC $19.38 CITY OF OWASSO WATER SERVICE $311.50 FLEETCOR TECHNOLOGIES FUEL CHARGES DEC 23 $388.82 VERDIGRIS VALLEY ELECTRIC COOP PARKS ELECTRIC $65.44 GEN PARKS -Total $785.14 I'i Claims List - 01/16/2024 Fund Vendor Name Payable Description Payment Amount 01 GENERAL JPMORGAN CHASE BANK GRAINGER -VALVE REPAIR $276.35 JPMORGAN CHASE BANK LOWES -VALVE REPAIR $7.78 JPMORGAN CHASE BANK WALMART- PRISON BOARD $169.93 GEN POLICE COMMUNICATIONS -Total $454.06 BLUE ENERGY FUELS LLC CNG FUEL CHARGES DEC $71.53 FLEETCOR TECHNOLOGIES FUEL CHARGES DEC 23 $1,722.97 JPMORGAN CHASE BANK INTERSTATE- BATTERIES $23.60 UNIFIRST HOLDINGS LP UNIFORM SERVICES $71.92 GEN STORMWATER -Total $1,890.02 AEP IPSO STREET LIGHTS $10.92 TREASURER PETTY CASH CC DEP REF - BERBEE $100.00 TREASURER PETTY CASH CC DEP REF - LANIER $100.00 TREASURER PETTY CASH CC USER FEE- LANIER $135.00 GENERAL -Total $345.92 GENERAL -Total $31,006.00 20 AMBULANCE SERVICE FLEETCOR TECHNOLOGIES FUEL CHARGES DEC 23 $3,814.17 PROFESSIONAL AMBULANCE SALES & CORNER LIGHTS M1 $280.08 AMBULANCE -Total $4,094.25 TREASURER PETTY CASH SR AMS REF - PORTMAN $20.40 AMBULANCE SERVICE -Total $20.40 AMY CARROLL ST2 MURAL $700.00 FIRE STAT #2 RENOVATION -Total $700.00 AMBULANCE SERVICE -Total $4,814.65 21 E -911 COX COMMUNICATIONS T1 CIRCUITS $229.00 INCOG E911 CHARGES $6,720.05 JPMORGAN CHASE BANK TYLER USER - CONFERENCE $4,360.00 LANGUAGE LINE SERVICES TRANSLATION SVCS $159.13 MOTOROLA SOLUTIONS INC ASTRO PKG E911 $2,863.46 E911 COMMUNICATIONS -Total $16,331.64 E -911 -Total $16,331.64 23 EMERGENCY SIREN ASSOCIATION OF PUBLIC - SAFETY FREQ LIC -STM SIRENS $3,990.00 SAFETYCOM INC WARNING SIREN SYS $708,733.60 STORM SIREN REPLACEMENT -Total $712,723.60 EMERGENCY SIREN -Total $712,723.60 27 STORMWATER MANAGEMENT MESHEK & ASSOCIATES, P.L.C. NOTTINGHAM DRNG IMPRV $13,499.95 NOTTINGHAM DRAINAGE IMPRO -Total $13,499.95 JPMORGAN CHASE BANK ATWOOD -TRASH BAGS $61.98 JPMORGAN CHASE BANK LOT 109 - PARKING $8.00 UNIFIRST HOLDINGS LP UNIFORM SERVICES $5.91 Claims List - 01/16/2024 Fund Vendor Name Payable Description Payment Amount 27 STORMWATER MANAGEMENT STORMWATER- STORMWATER -Total $75.89 STORMWATER MANAGEMENT -Total $13,575.84 31 AMBULANCE CAPITAL TREASURER PETTY CASH SR AMB REF - PORTMAN $3.60 AMBULANCE CAPITAL -Total $3.60 AMBULANCE CAPITAL -Total $3.60 34 VISION TAX CROSSLAND HEAVY CONTRACTORS 116 -MINGO TO GARNETT $1,048,683.22 116TH -MINGO TO GARNETT RD -Total $1,048,683.22 VISION TAX - Total $1,048,683.22 37 SALES TAX FIRE AT &T PHONE SERVICE $3.35 CITY OF OWASSO WATER SERVICE $101.50 CONRAD FIRE EQUIPMENT INC. PUMP TESTING $2,248.97 CONRAD FIRE EQUIPMENT INC. REPAIRS TO APPARATUS $8,670.33 AND FLEETCOR TECHNOLOGIES FUEL CHARGES DEC 23 $2,202.47 JPMORGAN CHASE BANK AMAZON- CONTROL PROBE $16.48 JPMORGAN CHASE BANK TYLER USER - CONFERENCE $3,270.00 NORTH AMERICA FIRE EQUIPMENT CO. PPE UNIFORMS $48,888.00 SALES TAX FUND -FIRE - Total $65,401.10 SALES TAX FIRE -Total $65,401.10 38 SALES TAX POLICE AT &T PHONE SERVICE $10.06 BOARD OF TESTS FOR ALCOHOL & DRUG RENEWALS $168.00 CITY OF OWASSO WATER SERVICE $35.00 FLEETCOR TECHNOLOGIES FUEL CHARGES DEC 23 $10,708.59 JPMORGAN CHASE BANK ACADEMY -TOOLS $179.99 JPMORGAN CHASE BANK AMAZON- SUPPLIES $2,157.36 JPMORGAN CHASE BANK DOLLAR GENERAL- SUPPLI $5.19 JPMORGAN CHASE BANK EMBLEM - UNIFORM $850.25 JPMORGAN CHASE BANK LOWES- SUPPLIES $192.85 JPMORGAN CHASE BANK MTM RECOG- UNIFORM $89.38 JPMORGAN CHASE BANK QT -CAR WASH $12.00 JPMORGAN CHASE BANK RC KENNELS -K9 GROOM $82.80 JPMORGAN CHASE BANK SAFARILAND- EQUIPMENT $4,299.60 JPMORGAN CHASE BANK SHEEPDOG - TRAINING $225.00 JPMORGAN CHASE BANK SPECIAL OPS- UNIFORM $1,821.75 JPMORGAN CHASE BANK TRAVEL EXP 4/8.12 $594.90 JPMORGAN CHASE BANK TULSA TECH- TRAINING $447.00 JPMORGAN CHASE BANK TYLER USER - CONFERENCE $3,270.00 JPMORGAN CHASE BANK USPCA- RENEWAL $50.00 JPMORGAN CHASE BANK WATERSTONE- UNIFORM $930.28 PRECISION DELTA CORPORATION FIREARMS SUPPLIES $15,471.00 4 Claims List - 01/16/2024 Fund Vendor Name Payable Description Payment Amount 38 SALES TAX POLICE SALES TAX FUND - POLICE -Total $41,601.00 SALES TAX POLICE - Total $41,601.00 39 SALES TAX STREETS AEP /PSO STREET LIGHTS $9,341.61 BLUE ENERGY FUELS LLC CNG FUEL CHARGES DEC $127.15 FLEETCOR TECHNOLOGIES FUEL CHARGES DEC 23 $1,700.72 JPMORGAN CHASE BANK BROWN FARMS -SOD $85.00 JPMORGAN CHASE BANK FLEET -FUEL $481.00 JPMORGAN CHASE BANK LOWES -FORM BOARDS $73.60 JPMORGAN CHASE BANK LOWES - LUMBER $253.52 JPMORGAN CHASE BANK LOWES - STRAPS $63.96 JPMORGAN CHASE BANK OREILLY -PB BLASTER $37.45 JPMORGAN CHASE BANK OREILLY- SUPPLIES $302.48 JPMORGAN CHASE BANK WELSCO- RENTAL $51.50 UNIFIRST HOLDINGS LP UNIFORM SERVICES $105.38 VERDIGRIS VALLEY ELECTRIC COOP 116/129 TRAFFIC SIGN $91.56 VERDIGRIS VALLEY ELECTRIC COOP CHAMPION STREET LIGHT $86.62 VERDIGRIS VALLEY ELECTRIC COOP SECURITY LIGHT $7,23 SALES TAX FUND-STREETS -Total $12,808.78 SALES TAX STREETS -Total $12,808.78 40 CAPITAL IMPROVEMENTS DOERNER, SAUNDERS, DANIEL & LEGAL SERVICE FEES $630.43 MICHAEL W CHRISTENBERRY ROW ACQUISITION $23,500.00 CIP 1061129 INTERSECT IMP -Total $24,130.43 TREASURER PETTY CASH ROGERS CO -PW DEED $52.00 CIP 961145TH INTERSECT -Total $52.00 JPMORGAN CHASE BANK HITCH IT -VEH EQUIP $800.02 CIP POLICE VEHICLES -Total $800.02 K +D ARCHITECTS LLC FS 1 AND 2 REMODELS $803.12 FIRE STAT #1 RENOVATION -Total $803.12 K +D ARCHITECTS LLC FS 1 AND 2 REMODELS $803.13 FIRE STAT #2 RENOVATION -Total $803.13 CAPITAL IMPROVEMENTS -Total $26,588.70 70 CITY GARAGE BUMPER TO BUMPER AUTO PARTS PARTS FOR RESALE CITY $66.00 GAR CROW BURLINGAME COMPANY PARTS FOR RESALE CITY $1,894.09 GAR FLEETCOR TECHNOLOGIES FUEL CHARGES DEC 23 $14164 JPMORGAN CHASE BANK AMAZON- ELEMENT $47.98 JPMORGAN CHASE BANK CAS -FORD DIAG PROG $1,295.00 JPMORGAN CHASE BANK FEDEX- POSTAGE $30.54 JPMORGAN CHASE BANK HESSELBEIN -TIRES $308.38 67 Fund 70 76 77 78 Claims List - 01/16/2024 Vendor Name Payable Description CITY GARAGE JPMORGAN CHASE BANK JIM GLOVER -PARTS JPMORGAN CHASE BANK JPMORGAN CHASE BANK JIM GLOVER- REFUND JIM NORTON -PARTS Payment Amount $1,817.56 ($52.94) $1,425.38 WELLNESS -Total ($299,64) HEALTHCARE SELF INS FUND -Total ($299.64)_ City Grand Total $2,010,591.90 JPMORGAN CHASE BANK ODP- SUPPLIES $9.68 JPMORGAN CHASE BANK ROCK AUTO -PARTS $54.55 JPMORGAN CHASE BANK SOUTHERN -TIRES $1,825.74 JPMORGAN CHASE BANK WHITE STAR -PARTS $345.52 UNIFIRST HOLDINGS LP VEHICLE MAINT UNIFORM $84.50 VEHICLE MAINTENANCE -Total $9,295.62 CITY GARAGE -Total $9,295.62 WORKERS' COMP SELF -INS CITY OF OWASSO IMPREST ACCOUNT WORKERS COMP CLAIMS $3,421.53 OK TAX COMMISSION SPECIAL TAX UNIT MITF ASSESSMENTS $3,531.80 UNITED SAFETY & CLAIMS INC WORKERS COMP SVC FEE $1,658.33 WORKERS' COMP SELF -INS -Total $8,611.66 WORKERS' COMP SELF -INS -Total $8,611.66 GENERAL LIABILITY - PROPERT MICHAEL C WACKENHUTH K.MCBRIDE TR #2023 -11271 $285.00 MILL AVE INC GOLF CLUB RESTORATION $1,891.13 OKLAHOMA MUNICIPAL ASSURANCE PROPERTY PREMIUMS $17,270.00 GROUP GEN LIAB -PROP SELF INS -Total $19,446.13 GENERAL LIABILITY - PROPERT -Total $19,446.13 HEALTHCARE SELF INS FUND JPMORGAN CHASE BANK MEETING EXP 12/13 $157.39 JPMORGAN CHASE BANK ROGUE - REFUND ($457.03) WELLNESS -Total ($299,64) HEALTHCARE SELF INS FUND -Total ($299.64)_ City Grand Total $2,010,591.90 sd TO: The Honorable Mayor and City Council FROM: Michele Dempster, Human Resources Director SUBJECT: OkMRF Retirement Request DATE: January 11, 2024 BACKGROUND: Oklahoma Municipal Retirement Fund (OkMRF), the retirement plan for employees who do not participate in the State Police or State Fire pension plans, requires the City Council acting as the OkMRF Retirement Committee to approve applications for retirement. To be eligible for retirement benefits through OkMRF an employee must have a minimum of five years of employment. Once an employee has five years of service the employee is considered vested and upon leaving employment with the City has three options depending upon age. 1. Normal Retirement is available to a vested employee age 65 or older, or age 62 with thirty years of service. 2. Early Retirement is available to a vested employee between ages 55 and 65. 3. Deferred Retirement is available to a vested employee under the age of 65. Deferred Retirement allows an employee to "defer" retirement benefits until a future date, at which time the employee would begin receiving monthly retirement benefits. February 9, 2024, will be the last day of employment for Deborah Grace, Managerial Department. Ms. Grace has been employed with the City since February 2000, and has been a participant in the OkMRF retirement plan since June 2014, Ms. Grace is vested and has applied for, and meets the prerequisites for Normal Retirement. RECOMMENDATION: Staff recommends approval of Normal Retirement benefits for Deborah Grace. TO: FROM: SUBJECT: DATE: The Honorable Mayor and City Council Wendy Kramer, City Planner Final Plat - Lot 4, Block 1 Morrow Commercial January 11, 2024 BACKGROUND: The Community Development Department received an application for review and approval of a Final Plat for Lot 4, Block 1 Morrow Commercial, a proposed commercial subdivision. The subject property is located east of the northeastern corner of the intersection of East 116th Street North and North 129th East Avenue, also described as 13133 East l 16th Street North, Collinsville, OK 74021. SUBJECT PROPERTY /PROJECT DATA: Property Size 0.918 acres +/- Current Zoning Commercial Shopping (CS) Present Use Vacant Proposed Use Commercial Lots /Blocks 1 Lot /1 Block Land Use Master Plan Commercial Within a Planned Unit Yes; OPUD 05 -02A Development PUD ? Within an Overlay Yes; US -169 Overlay District District? Water Provider Washington County Rural Water District #3 Applicable Paybacks Storm Siren Fee ($50.00 per acre) (Assessed at Platting) Ranch Creek Sewer Assessment Area ($610.33 per acre) Garrett- Morrow Sanitary Sewer Assessment Area 3,146 per acre ANALYSIS: • The subject property was annexed into Owasso City Limits with Ordinance 832 in 2005. • The Preliminary Plat for this property was approved by the Owasso Planning Commission in November of 2022. • The proposed Final Plat for Lot 4, Block 1 Morrow Commercial consists of one (1) Lot on one (1) Block on approximately 0.918 acres. o The proposed lot as depicted on this Plat meets the bulk and area requirements stipulated in the Owasso Zoning Code for CS -zoned property and the OPUD 05 -02A document. • Access for the site will be provided through two (2) mutual access easements that are present, or will be constructed, on the adjacent lots on either side of the subject property. • Detention is provided for offsite, to the northeast of the subject property. As such, there are no reserve areas depicted on the Final Plat. • Perimeter and interior utility easements are shown on the Plat allowing utility companies adequate access to service the subdivision. • The City of Owasso will provide police, fire, ambulance, and sanitary sewer services to the property. Washington Rural Water District #3 will provide water services to the property. Final Plat- Lot 4, Block 1 Morrow Commercial Page 2 • Any development that occurs on the subject property must adhere to all subdivision, zoning, and engineering requirements. SURROUNDING ZONING AND LAND USE: Direction Zoning Use Land Use Plan Jurisdiction North Commercial Shopping Vacant Commercial City of Owasso Residential Single - Family Residential Residential/ South (RS -3) /Commercial Subdivision/ Commercial City of Owasso Shopping CS Grocery Store East Shopping ( S) Vacant Commercial City of Owasso mercial West Commercial Shopping Drive -Thru Coffee Commercial City of Owasso (CS) Establishment PLANNING COMMISSION: The Owasso Planning Commission voted 5 -0 to recommend approval of this item at their regular meeting on January 8, 2024 RECOMMENDATION: In developing a recommendation, staff evaluated the final plat on the criteria outlined in Section 2.4 of the Owasso Subdivision Regulations. Following this evaluation, staff concluded that the subject plat meets all legal requirements for approval. As such, staff recommends approval of the final plat for Lot 4, Block 1 Morrow Commercial. 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IT.a�� %B�,E� @:.a�ps�.� TO: The Honorable Mayor and City Council FROM: H. Dwayne Henderson, P.E., City Engineer SUBJECT: Recommendation for Utility Relocation Agreement - East 96th Street North from North 119th East Ave to North 129th East Avenue Roadway Improvements DATE: January 11, 2024 BACKGROUND: In 2018, City Council approved Engineering Services with BKL, Inc., for the widening of East 96th Street North from North 119th East Avenue to North 1291h East Avenue. Designers determined that Washington County Rural Water District (RWD) #3 water lines were in conflict with future roadway and traffic signal placement. Included in the design contract was the design of necessary relocations of the District's water lines. The relocations will need to occur at the time of the construction of the roadway and new traffic signals to ensure that the future water line is at the appropriate grades and elevations. Due to the rights of the District, the relocation of the water line is the City's responsibility to fund. In order to avoid additional costs, delays and burdensome coordination between separate contractors and multiple contracts, staff proposes the relocations occur as a part of the roadway construction. Construction bids were opened on December 12, 2023, for the roadway improvements and water line relocation, however, no successful bid was awarded. The project will be re -bid in the fall of 2024. The water line relocation will occur at that time. In order to formalize responsibilities for this relocation, an Agreement has been drafted with Washington County RWD #3 (see Attachment) and has been approved by Washington County RWD #3 to include the following: Because there is no "betterment" associated with the project, the City of Owasso will pay for the costs to relocate the existing water lines. Washington County RWD #3 water line shall be relocated upon right of way or easement land obtained by the City of Owasso for that purpose; The City of Owasso will assure compliance with all local, state, and federal laws, rules, regulations, ordinances, orders, and required approvals applicable to it or the project. FUNDING: Funds are available in the Vision Recapture Fund. RECOMMENDATION: Staff recommends approval of the Utility Relocation Agreement with Washington County Rural Water District #3 pertaining to the Widening of East 96th Street North from North 119th East Ave to North 129th East Avenue and authorization for the Mayor to execute the Agreement. ATTACHMENTS: Location Map Utility Relocation Agreement UTILITY RELOCATION AGREEMENT PROJECT: E. 96th ST N. N. 119th E. Ave to N 129th E Au Improvement Project Job #: COUNTY: Tulsa County THIS AGREEMENT made and entered into by and between the City of Owasso, Oklahoma (Owasso Public Utilities Authority), hereinafter referred to as the "City" and Rural Water District No. 3, Washington County, Oklahoma, hereinafter called the "District ". RECITALS WHEREAS, the City proposed to construct certain roadway, traffic signal and drainage system improvements in the vicinity of the E. 96th STN N. 119th E Ave to N 129th E Ave Improvement Project and such improvements will necessitate the rearrangement and /or relocation of certain water lines and related appurtenances (i.e., facilities) currently owned, operated and maintained by said District within the project corridor, and; WHEREAS, it is understood that the scope of the relocation work is different than the facilities that exist within the project corridor today, and [check one]: X such differences do not constitute "betterments" for the District; OR such differences constitute "betterments" for the District, and the District shall therefore pay the fixed sum of $ of the project costs, with City paying all remaining costs. WHEREAS, if District's waterlines and facilities are currently situated in private easement(s), and District will be giving up certain rights and benefits it enjoys in entering into this Agreement, and to the extent possible, City will either purchase and pay for utility easement(s) or rights -of -ways for the benefit of private or public utilities,; and WHEREAS, for any portions not placed in private easement in the name of the District, City shall designate a portion or portions of public utility easements and /or rights -of -way for use by the District. In all circumstances the facilities shall be legally and rightfully relocated upon lands obtained by City for the benefit of the District, all for the purpose of giving the District the same rights it enjoys in currently held easements and /or rights of way. In all circumstances the District shall be afforded sufficient space, same meaning an area approximately 20 feet in width above ground, to install, construct, maintain, operate and /or replace its waterlines, appurtenances and facilities; provider further, that all waterlines, appurtenances and facilities shall be spaced pursuant to ODEQ rules and regulations, whether above or below ground; and Page 1 of 8 Utility Relocation Agreement E. 96th ST N. N. 119th E Ave to N 129th E Ave Improvement Project WHEREAS, the City will provide the legal documents to the District that show and describe the easements and /or rights -of -way upon which the District's facilities will be relocated, and City herein guarantees title to such easements and /or rights -of -way and agrees to indemnify, defend and hold District harmless from any suits involving the validity, existence or the District's rights in and to use said easements and /or rights -of -way, and; WHEREAS, the City will be responsible for all tasks to complete the required relocation work including but not necessarily limited to field surveys, design and plan preparation, reviews, permitting, bidding and construction, all being subject to the review and written approval of the District. The design and construction work will be performed in complete conformance with the current Standards for Materials and Construction of the District (see attachment) and; WHEREAS, the City will be responsible for all associated costs including the District's legal expenses pertaining to the project, and expenses to have the District's own engineer review and comment on the plans for the required relocation work, attend meetings and prepare related correspondence, and technical guidance, and; if there is a "betterment requested by the District ", the District will cover the prorated portion of the additional cost for engineering and plan review by the District's Engineer. WHEREAS, it is understood that if said project is to be financed in part from funds appropriated by the United States by either party, and expended under its regulations, that acceptance of work and procedure in general are subject to Federal Laws, Rules, Regulations, Orders, and Approvals applying to it as a Federal Project; provided, however, if the District uses federal money to pay for a "betterment" and the "betterment" necessitates an environmental study other than what is necessary for the underlying project, then the District shall bear the costs of the environmental study. Otherwise, City shall pay for all other environmental study. WHEREAS, the City will be responsible for assuring compliance with all local, state and federal laws, rules, regulations, ordinances, orders, and required approvals applicable to it or the Project, whether by reason of being a Federal Project or otherwise, and; WHEREAS, the City and /or District both separately or together reserve the right to cancel this Agreement at any time prior to the beginning of the adjustment or relocation of the facilities of the District, and; NOW, THEREFORE, in consideration of the mutual covenants herein contained, the parties hereto agree as follows: 1. City will pay all costs associated with or related to the relocation of the District's waterlines, appurtenances and facilities, including costs of easements and /or rights -of -way. 2. City will prepare, or have prepared, engineered drawings showing the present, temporary and proposed location of the District's facilities in both plan and profile views, with reference to the centerline of survey and /or the new and existing easement and /or right -of -way lines using control stationing and state plain coordinates, if applicable. The plans shall delineate the details Page 2 of 8 Utility Relocation Agreement E. 96th STN N. 119th E Ave to N 129th E Ave Improvement Project of the work including, but not necessarily limited to, alignment geometry, pipe materials and pressure class, fitting types and end conditions, restraints, depth of cover and regulatory mandated separation distances from other utilities. 3. City shall provide District two (2) sets of drawings (11x17) for every review required for the project, whether required by the City or the District. 4. The City will comply with all applicable laws, rules, statutes, ordinances and regulations (collectively hereinafter referred to as "laws ") pertaining in any way to the project, including, without limitation, those necessary to meet the Oklahoma Department of Environmental Quality (ODEQ) requirements for pollution prevention, including discharges from storm water runoff on this project, spacing between utilities, and required depth of facilities. Further, City agrees to secure a Storm Water Permit from ODEQ, when required. City represents and agrees that the project plans and specifications, required schedules for accomplishing the temporary and permanent erosion control work, and the storm water pollution prevention plans contained in the plans constitute the Storm Water Management Plan for the project. City agrees to have daily operational control of those activities, at the site, either through its third party representative or in cooperation with ODOT's project manager, necessary to ensure compliance with plan requirements and permit conditions. City agrees to make sure that the contractor files any Notice of Intent (NOI), when required, for a general construction Oklahoma Pollutant Discharge Elimination System Permit with ODEQ, which authorizes the discharge of storm water associated with construction activity from the project site identified in this document. Such drawings will be attached to and become a part of this agreement. 5. City and the District agree to comply fully with all funding agency requirements, if any, and as applicable. 6. Upon completion of the plan review process, and written notice by District to City of the District's approval of the plans, City agrees to provide the District with two (2) sets of the final plans (11x17) for use during bidding and construction. 7. City agrees to provide the District with two (2) sets of all shop drawing submittals for the District's water line(s) and related appurtenances and facilities, and shall not allow the installation of any materials without prior written approval from the District. The District shall review and comment on each submittal and respond to the City of Owasso within 10 business days of receiving the submittal for review. 8. City agrees to include the District in all coordination and construction progress meetings for the water line relocation portion of the project and to provide two (2) copies of all related project correspondence. 9. District will have at least one representative who will review and inspect the Work and progression on the Project, said representatives to be paid for at District's sole expense. City Page 3 of 8 Utility Relocation Agreement E. 96th ST N N 119th E. Ave to N 129th E Ave Improvement Project agrees to effectively communicate with the District's representative (s) regarding construction issues and related concerns. Effective communication shall include, but not necessarily be limited to, written documentation describing any proposed changes to the District's existing and /or new facilities. 10. City agrees to provide for a qualified inspector, or inspectors, as the case may dictate, that will be on site during the relocation work. If applicable, ODOT's inspector shall serve as ODOT's and City's representative and will work with the District and its representative(s) as a liaison. The City's inspector will be responsible for documenting all day -to -day communications with the District during the construction work. It is agreed that the District's representative shall not direct any field changes with the Construction Contractor that haven't been previously approved in writing by the City and /or City's inspector. 11. City agrees to consider and act upon reasonable changes requested by the District that varies from the approved plans and bid documents. It is anticipated that certain changes may be required as the result of unforeseen obstacles and /or other utility or roadway changes. The cost for changes of this nature will be paid entirely by the City. Changes that are not the result of unforeseen obstacles and result in betterments beyond the scope depicted in the final approved plans and bid documents shall be paid by the District and will be agreed upon in writing before any work is performed; provided, however, if such agreement cannot be reached between City and the District then this Agreement shall be considered null, void and terminated. 12. The District's representatives shall have any and all reasonable access to the project site during the installation of the District's water line(s), appurtenances and facilities during the project roadway and /or bridge construction to protect their new and existing water lines. The District's project representative shall have final approval of all trenching, bedding, haunching, backfilling and final grading over the District's water line, installation of all valves, hydrants, restraints, pipes, meters and other appurtenances and facilities. Trenches shall remain open until the end of the work day, so the District's representative can approve them for backfilling. Any conflicts with the installation of the District's waterlines, appurtenances or facilities in relation to the overall project construction shall be presented to the District and /or District's Engineer for resolution. Safety vest and hard hat must be worn by the District representative while present of the job site. 13. City agrees to allow the District to be present when pressure testing and disinfection of its water lines, appurtenances and facilities, and City will provide approval to the Contractor only after receiving written final approval from the District. 14. Due to the proximity of the proposed relocated waiver line for RWD #3 to traffic signals at North 12'Ist Fast Ave and the Wal- Mart /US Hwy 169 Off -ramp intersections with E. 96th Str. N, the City of Owasso holds RWD #3 harmless for damages to signal equipment that are caused by routine water leaks and repairs if mie or both of the following occurs: Page 4 of 8 Utility Relocation Agreement E. 96th STN N. 119th E. Ave to N 129th E Ave Improvement Project a. the City of Owasso does not locate their existing lines within the allotted time specified by the OKIE ONE: CALL System and; b. the City of Owasso does not locate their lines to within 2 the feet of accuracy requirement to their actual location set by the OKiE ONE -CALL system" 15. The proximity of the Districts relocated water lines to the City of Owasso traffic light poles is a concern. When water Tine repairs are required, the City of Owasso agrees to assist the District by providing all labor, tools, equipment (e.g., pole truck) and materials to adequatelysecure the traffic light Pole structures) as deemed necessary to protect the public safety. 16. City agrees to provide the District with two (2) complete sets of Record Drawings for the Project. The Record Drawings shall be provided in both hard copy and electronic format. The electronic format shall be on compact disk that includes design files that are directly compatible with AutoCAD Lt 2007, or any other program approved by the District. If City fails to provide two (2) complete sets of Record Drawings, District shall have the right to survey, pothole, review existing records and anything necessary to draft Record Drawings, and all the expenses associated with same shall be paid by City, subject to the terms and conditions of Paragraph 1. 17. The District shall pay no costs or expenses other than the amount set forth above, if any. Any cost or expense which is not specifically allocated to the District, in writing, shall be paid by City. 18. Should any future relocation be required with respect to the District's waterlines, appurtenances or facilities, the City shall pay all the costs thereof, unless otherwise agreed to, in writing. After relocation and upon final approval of the District, the District will assume all operational ownership and maintenance responsibilities of the District's waterlines, appurtenances and facilities. 19. City states that no building, structure, fence, wall or other above ground structure or obstruction will be placed, erected, installed or permitted upon the area set aside as an easement or right -of -way for the District (defined above as being an area approximately 20 feet in width, above ground, and subject further to ODEQ spacing rules and regulations); provided, however, that the installation of landscaping and /or paving may occur in said easement or right -of -way area under the condition that the District shall not be responsible in any manner to repair any damage to such pavement (including, without limitation, roadways, driveways and sidewalks, whether asphalt, concrete, rock or any other material) or landscaping in relation to the District's installation, repair, replacement, operation, maintenance or any other District activity associated with or relating to its waterlines, appurtenances and facilities (including, without limitation, damage caused by excavation and damage occasioned by a water leak or waterline "blow out "). District shall bear no obligation whatsoever for any damages or expenses associated with any such landscaping, pavement, or any other structure on, at or near Page 5 of 8 Utility Relocation Agreement E. 96th ST N. N. 119th E. Ave to N 129th E. Ave Improvement Project the area given the District to install, maintain, operate, repair or replace its waterlines, appurtenances and facilities. 20. If the District's waterlines, appurtenances or facilities are damaged through no fault of the District, the party damaging such waterlines, appurtenances and facilities shall be responsible for all repair costs, and for the cost of water lost at the then existing rates of the District. 21. The Recitals stated above are considered material terms of this Contract, and the parties agree to be bound by all statements and representations made in the Recital section above, and said Recital section shall be considered a part and parcel of the parties' bargained for exchange. 22. It is understood that this Agreement does not change the rights or obligations of the District or the City as they exist in accordance with present State Law. 23. Benefit; Binding Effect. This Agreement shall inure to the benefit of both of the parties herein, and to each of the parties' respective successors and assigns. Likewise, this Agreement shall be binding on the parties hereto and their respective successors and assigns. 24. Partial Invalidity. If any part of any provision of this Agreement shall be invalid or unenforceable under applicable law, such part shall be ineffective to the extent of such invalidity only, without in any way affecting the remaining parts of such provision or the remaining provisions, terms, covenants or conditions of this Agreement. 25. Laws of the State of Oklahoma Govern Venue. This Agreement shall be governed by the laws of the State of Oklahoma. Any action taken to enforce the provisions herein shall be filed and maintained in Washington County, State of Oklahoma, which shall be the venue of any such action. 26. Attorney's Fees, Costs and Expenses. In the event any action is brought to enforce, or for the breach of, any provision of this Agreement, the prevailing party shall be entitled to recover its costs and expenses, including attorney's fees, associated with such action. 27. Entire Agreement. This Agreement represents the entire, integrated agreement between the ity and District, and supersedes all prior negotiations, proposals, representations, commitments, understandings, contracts or agreements made or entered into by the parties, either written or oral, with respect to the matters and terms covered by this Agreement. Additionally, this Agreement may not be modified or amended except by a written instrument executed by both parties. 28. Duplicate Originals. This Agreement may be executed in duplicate originals, each such duplicate original shall be deemed to be an original, and all such duplicate originals taken collectively shall constitute one instrument for all purposes. Page 6 of 8 Utility Relocation Agreement E. 96th ST N. N. 119th E. Ave to N 129th E. Ave Improvement Project 29. Notwithstanding any other provision herein stated, it is expressly understood that this Agreement is strictly by and between City and the District, and provided further no other entity is deemed to be a beneficiary of this Agreement, whether an intended beneficiary, or otherwise, and whether reference be made to another entity or class of entity, or not. IN WITNESS WHEREOF, the parties hereto have caused this Utility Relocation Agreement to be executed by their duly authorized officers on the day and year last below written. WASHINGTON COUNTY RURAL WATER DISTRICT NO. 3: By: C' NA 1 r y�, a t-' (Title) IZ —C/— Z J (Date) Page 7 of 8 Utility Relocation Agreement E, 96th ST N. N 119th E. Ave to N 129th F Ave Improvement Project THE CITY OF OWASSO, OKLAHOMA A MUNICIPAL CORPORATION: Kelly Lewis, Mayor Date: ATTEST: Juliann M. Stevens, City Clerk APPROVED AS TO FORM: Julie Lombardi, City Attorney (SEAL) Page 8 of 8 Utility Relocation Agreement E. 96th ST N. N. 119th E. Ave to N. 129th E Ave Improvement Pro'ect TO: The Honorable Mayor and City Council FROM: H. Dwayne Henderson, P.E., City Engineer SUBJECT: Amendment No. 4 - East 96th Street North from North 119th East Avenue to North 129th East Avenue Roadway Improvements - Engineering Design Services DATE: January 11, 2024 BACKGROUND: In August 2018, the City Council approved an agreement with BKL, Inc., in the amount of $450,000.00, . to provide design plans and specifications for the above referenced project, which included: • Utility relocation design of the public utilities; • Road widening of East 96th Street North from North 119th East Avenue to the Wal- Mart Entrance; • Road widening of East 96th Street North from just east of the bridge to North 129th East Avenue; • Widening of North 121st Street East Avenue from East 96th Street North to the first curve south; • Modifying entrances along East 96th Street North and other ancillary work; • Widening and extending on and off ramps on the existing interchange; • Parking lot and access drive modifications along the commercial area • Prepare right -of -way documents • Coordinate private utility relocations • Preparing bid documents • Assist with bidding and construction Engineering Amendment No. I was approved on June 10, 2019, adding $14,800.00 to the cost for engineering services, for modification to legal descriptions during right -of -way acquisition and for the redesign of the southeast corner of East 961h Street North /North 121st East Avenue to accommodate the cabinets /controllers for AT &T and COX Communications. Engineering Amendment No. 2 was approved on July 5, 2022, adding $32,300.00 to the cost for engineering services. The amendment added the engineering design of the Washington County RWD #3 water line relocation; adding a median to the project, which added landscaping and irrigation; modify the south entrance into the shopping center east of North 121 It East Avenue; and preparation of updated cost estimates. Engineering Amendment No. 3 was approved on October 3, 2023, adding $23,500.00 to the cost for engineering services. The amendment modified the romp improvements on US Hwy 169 for both northbound and southbound on and off ramps. All concrete ramps were changed to asphalt so future removal can be achieved with minimal effort; modifications were made to the pavement and parapet walls and the associated sidewalk on the existing bridge; modifications were made to the handicap ramps and aprons to accommodate the future construction by ODOT and the cross- sections sheets, summary sheets and cost estimates to reflect the changes above were made. PROPOSED ENGINEERING AMENDMENT NO. 4: With the recent high bids, which were above the available funds in the Vision Recapture Budget, the City Council rejected all construction bids. East 961h Street North Improvements, North I I 91 East Avenue to North 1291h East Avenue Page 2 Staff subsequently recommends the project be split into two parts: the east side and west side of the bridge. Staff is requesting an engineering amendment be approved to separate the work on the east side of the bridge from the overall plans to allow staff to bid that section of roadway. This action will also allow the east side of the bridge to be improved within the existing available funds and allow staff to evaluate the west side of the bridge later this spring and make recommendations for a scaled back project and fall 2024 bidding. Amendment No. 4, which includes the east side portion of the project is being proposed for the following changes: • Revise plans to separate east end of project as its own project. • Revise cross - sections to show east end but omit the west end. • Revise signal plans and quantities for east end intersections. • Ordering and purchasing the west side signal poles, mast arms, & pedestrian poles will be included with the bidding of the east side project to minimize material delays when the west side project is bid in fall 2024. • Revise Summaries and Cost Estimate. • Provide modified plan submittal and construction schedule. FUNDING: Funding is available in the Vision Recapture Fund Budget. RECOMMENDATION: Staff recommends approval of Amendment No. 4 to the Agreement for Engineering Services for the design of the East 96th North Street Roadway Improvements from North I I 91 East Avenue to North 129th East Avenue with BKL, Inc., of Tulsa, Oklahoma, in the amount of $21,500.00, and authorization to execute all necessary documents. ATTACHMENTS: Location Map Amendment No. 4 II J ry Q � �1Ji a J I11 L w F �. �SE r��a ni ❑ x u c \9L to 0 LL C u C�w a V 0 a E $ �/N y0 x� y V > u E a jc a o d o ti O C z to W N 0 y p W Q r N (a y O .3 w a V O U E W p CD r r o N w U a 0 ai O N 0) 3 0 Q ° CL L z o a CO w x LD 0 w - o Z z C u Q_ a) NQ �Qy> N N W 7 J ] W u Q z z\ (n Y F m F w fB W z ❑ y2 s �'z m QH1 2 I 1 Q � W W Il ZI a C �3d.b3 I �77 �d z N r 1 � Y W 1 .' n ILL cu J 0 I t I m P C U fp/] z ` p 30 1 1 cwi 70, F ;�., 4 I w co m E o W0 J a t0, KKa p O' Z I x O \ - (o I p m w y /b o f W ]17IIIy' I N C z L J r JSZL /1/ w y c eo w (U U 3 m :n m rn O c O j 6 In _ -- - = rQ No uj NN p O LLg II NE 1 > N x14 z N Q m n H - c u ra L0� U ni AMENDMENT NO.4 TO THE AGREEMENT FOR ENGINEERING SERVICES FOR THE CITY OF OWASSO, OK 96th STREET NORTH US 169 PHASE I IMPROVEMENTS THIS AMENDMENT, made and entered into this 16th day of January, 2024 between the City of Owasso, Oklahoma, a Municipal Corporation, of Oklahoma, hereinafter referred to as CITY, and BLK, Inc. hereinafter referred to as ENGINEER; WITNESSETH: WHEREAS, CITY and ENGINEER entered into an AGREEMENT, dated under which the ENGINEER was to provide professional services for `96h STREET NORTH. US 169 PHASE I IMPROVEMENTS hereinafter referred to as the PROJECT, and WHEREAS, CITY requires certain professional services in connection with the PROJECT, hereinafter referred to as the SERVICES; and, WHEREAS, ENGINEER, is prepared to provide such SERVICES; WHEREAS, funding is available for the PROJECT; NOW THEREFORE, in consideration of the promises contained herein, the parties hereto agree as follows: 1. SERVICES TO BE PERFORMED BY ENGINEER ENGINEER shall perform the SERVICES described in Attachment B, SCOPE OF SERVICES, which is attached hereto and incorporated by reference as part of this AMENDMENT. 2. COMPENSATION. CITY shall pay ENGINEER in accordance with Attachment D, COMPENSATION, which are attached hereto and incorporated by reference as part of this AMENDMENT. 3. All other terms and conditions of the AGREEMENT of shall remain in full force and effect. IN WITNESS WHEREOF, the parties have executed this AGREEMENT in multiple copies on the respective dates herein below reflected to be effective on the date executed by the Mayor of the City of Owasso. ENGINEER By: _ Date: APPROVED: Juliann M. Stevens, City Clerk APPROVED AS TO FORM: Julie, Lombardi, City Attorney CITY OF OWASSO, OKLAHOMA Warren Lehr, City Manager Date: AGREEMENT FOR ENGINEERING SERVICES FOR THE CITY OF OWASSO, OK 961h STREET NORTH US 169 PHASE I IMPROVEMENTS Scope of Services Attachment B B. Basic Services of ENGINEER. The basic services of the ENGINEER shall be amended to include the following tasks: 1. Revise plans to separate east end of project as its own project 2. Revise x- sections to show east end only. 3. Revise signal plans and quantities for east end intersections. 4. Include west side signal poles, master arms, & ped poles in east end project to bid. S. Revise Summaries and Cost Estimate. 6. Provide modified plan submittal and construction schedule. 3 AGREEMENT FOR ENGINEERING SERVICES FOR THE CITY OF OWASSO, OK 96th STREET NORTH. US 169 PHASE I IMPROVEMENT Compensation Attachment D DA Total Compensation For the work under this AMENDMENT the total maximum billing including direct costs and subconsultant services shall be Twenty -one Thousand five hundred and No /100 dollars. ($21,500.00), which amount shall not be exceeded without further written authorization by CITY. The ENGINEER acknowledges the following summary of modifications to the Fee Schedule as stated in the original Contract and modified by this AMENDMENT. Original Contract Amount $450,000 Amendment No. 1 $14,800 Amendment No. 2 $32,300 Amendment No. 3 $23,500 Amendment No. 4 $21,500 Total Amended Contract Amount $542,100 TO: The Honorable Mayor and City Council FROM: H. Dwayne Henderson. P.E., City Engineer SUBJECT: Oklahoma Department of Transportation (ODOT) Project Maintenance, Financing and Right -of -Way Agreement - East 86th Street North, North Main Street to North Garnett Road Widening Project DATE: January 11, 2024 BACKGROUND: City Council approved Resolution 2023 -09, authorizing staff to apply for funding through the Federal Highway Administration Surface Transportation Program for a needed widening project. The project was selected in June 2023 for funding. The project scope is to widen East 86th Street North from a four (4) lane street with asphalt surfacing to a five (5) lane wide concrete surface street. After 20 years of service, this section of roadway has reached capacity. PROPOSED AGREEMENT: The ODOT Project Maintenance, Financing and Right -of -Way Agreement is based on the engineering construction estimate provided by staff. If approved by the City Council, ODOT will be responsible for 80% of the road construction and construction administration, up to $3,000,000. The City will be responsible for funding the engineering, surveying, and geotechnical costs, and remaining construction. The following table depicts the cost distribution of the original application: Project Segment Estimate ODOT Portion City of Owasso Construction $5,395,871 $3,000,000 $2,395,871 Administration $647.505 $124,800 $647.505 Utility Relocation $500,000 N/A $500,000 Right -of -way $132,000 N/A $132,000 Engineering $431,670 N/A $431,670 Total Project Cost $7,107,045 $3,000,000 $4,107,045 FUNDING: Funding is available in the Capital Improvements Fund. RECOMMENDATION: Staff recommends approval of the Project Maintenance, Financing and Right -of -Way Agreement between the City of Owasso and Oklahoma Department of Transportation in the amount of $7,107,045 (ODOT's share being $3,000,000) and authorization to execute the agreement. ATTACHMENTS: Site Map ODOT -City of Owasso Project Maintenance, Financing and Right -of -Way Agreement Q) �0 L.L Q� L V L O Z O ^W` W L VJ .c� C L O z yc L O z V! W 00 co W N D = U N - N T N d U T d V U m W 0 E d N N N {Q C a .0 a C M u N a O N N w 5 m T ry� CN N N O C �G O N `u L N a Q 'o m C o O c ca o f0 U E E Jc u t a 0 O N 9Ot N. � C _ O N'r N aE m° ac .22N J b 21. GNJ N m O N� w N N T q E 'm an mh Eo mn N H � URBAN PROJECT AGREEMENT —(NOT TO EXCEED) (11/2312020) STATE OF OKLAHOMA DEPARTMENT OF TRANSPORTATION PROJECT MAINTENANCE, FINANCING, AND RIGHT -OF -WAY AGREEMENT WIDEN & RESURFACE Proj No: J3- 6591(004)IG State Job No.:36591(04) This Agreement, made the day and year last written below, by and between CITY OF OWASSO, hereinafter referred to as the Sponsor, and the Department of Transportation of the State of Oklahoma, hereinafter referred to as the Department, for the following intents and purposes and subject to the following terms and conditions, to wit: WITNESSETH WHEREAS, The Sponsor requested that certain street improvements be approved by the Oklahoma Transportation Commission, as were previously programmed by the Sponsor and described as follows: Project Type Div. 1 County JPNo Work Type Description I II No. WIDEN & RESURFACE 01 Tulsa 36591(04) J3- 6591(004)IG WIDEN& OWASSO: IMPROVEMENTS TO 86TH RESURFACE STREET NORTH WIDENING, UPDATED TRAFFIC SIGNALS SIGNAL COORDINATIONS, SIDEWALKS, RAMPS AND CYCLIST STRIPING WHEREAS, the Department is charged under the laws of the State of Oklahoma with construction and maintenance of State Highways; and, WHEREAS, the Department is, by terms of agreements with the Federal Highway Administration, responsible for the management and construction of certain federally funded projects within the corporate limits of cities within the State of Oklahoma; and, WHEREAS, the Sponsor has been identified as the beneficiary and sub - recipient of such federally funded project; and, WHEREAS, receipt of the benefits of this project will require that the Sponsor assume certain financial responsibilities; and, WHEREAS, the Sponsor is a municipal corporation created and existing under the constitution and laws of the State of Oklahoma; and URBAN PROJECT AGREEMENT -(NOT TO EXCEED) (11/2312020) WHEREAS, the laws and constitution of the State of Oklahoma impose financial restrictions on the Sponsor and its ability to ensure financial obligations; and, WHEREAS, the Parties hereto recognize those financial limitations and agree that the financial obligations assumed by the Sponsor, by the terms of this Agreement, are enforceable only to the extent as may be allowed by law or as may be determined by a court of competent jurisdiction; and, WHEREAS, it is understood that, by virtue of the Article 10, Section 26 of the Oklahoma Constitution, the payment of Sponsor funds in the future will be limited to appropriations and available funds in the then current Sponsor fiscal year. NOW, THEREFORE: the Department and the Sponsor, in consideration of the mutual covenants and stipulations as set forth herein, do mutually promise and agree as follows: SECTION 1: PROJECT AGREEMENT 1.1 If applicable, the Department will recommend approval of the project by the Federal Highway Administration. 1.2 The Sponsor agrees to comply with Title VI of the Civil Rights Act of 1964, 78 Stat. § 252, 42 U.S.C. § 2000d et seq., and all requirements imposed by or pursuant to Title 49, Code of Federal Regulations, Part 21 - "Nondiscrimination in federally assisted programs of the Department of Transportation effectuation of Title VI of the Civil Rights Act 1964 ". 1.3 The DEPARTMENT and SPONSOR mutually recognize that each party is a governmental entity subject to the provisions of the Governmental Tort Claims Act (51 O.S. § 151 et seq.). The DEPARTMENT and SPONSOR hereby mutually agree that each is and may be held severally liable for any and all claims, demands, and suits in law or equity, of any nature whatsoever, paying for damages or otherwise, arising from any negligent act or omission of any of their respective employees, agents or contractors which may occur during the prosecution or performance of this Agreement to the extent provided in the Governmental Tort Claims Act. Each party agrees to severally bear all costs of investigation and defense of claims arising under the Governmental Tort Claims Act and any judgments which may be rendered in such cause to the limits provided by law. Nothing in this section shall be interpreted or construed to waive any legal defense which may be available to a party or any exemption, limitation or exception which may be provided by the Governmental Tort Claims Act. 2 URBAN PROJECT AGREEMENT - (NOT TO EXCEED) (1123/2020) 1.4 The Sponsor understands that should it fail to fulfill its responsibilities under this Agreement, such a failure will disqualify the Sponsor from future Federal -aid funding participation on any proposed project: Federal -aid funds are to be withheld until such a time as an engineering staff, satisfactory to the Department has been properly established and functioning, the deficiencies in regulations have been corrected or the improvements to be constructed under this Agreement are brought to a satisfactory condition of maintenance. SECTION 2: ENGINEERING RESPONSIBILITIES 2.1 The Sponsor shall provide professional engineering services for the development of the Plans, Specifications and Estimates (PS &E) for this project. Design engineering for this project will be performed under the supervision of the Sponsor. Sponsor warrants to the Department that they will review the plans and will certify that the plans are acceptable to the Sponsor and are in full compliance with current standards and specifications. 2.2 Progress payments will be made to the consultant by the DEPARTMENT upon receipt of a properly executed claim form, approved by the SPONSOR, accompanied by suitable evidence of the completion of the work claimed, as detailed in the engineering contract. 2.3 The Department and Sponsor mutually recognize that each party is a governmental entity subject to the provisions of the Governmental Tort Claims Act (51 O.S. § 151 et seq.). The Department and Sponsor hereby mutually agree that each is and may be held severally liable for any and all claims, demands, and suits in law or equity, of any nature whatsoever, paying for damages or otherwise, arising from any negligent act or omission of any of their respective employees,, agents or officers which may occur during the prosecution or performance of this Agreement to the extent provided in the Governmental Tort Claims Act. Each party agrees to severally bear all costs of investigation and defense of claims arising under the Governmental Tort Claims Act and any judgments which may be rendered in such cause to the limits provided by law. Nothing in this section shall be interpreted or construed to waive any legal defense which may be available to a party or any exemption, limitation or exception which may be provided by the Governmental Tort Claims Act. 2.4 The Sponsor agrees to the location of the subject project and agrees to adopt the final plans for said project as the official plans of the Sponsor for the streets, boulevards, arterial highways and /or other improvements contained therein; and further, the Sponsor affirmatively states that it has or shall fully and completely examine the U URBAN PROJECT AGREEMENT - (NOT TO EXCEED) (11/23/2020) plans and shall hereby warrant to the Department, the Sponsor's complete satisfaction with these plans and the fitness of the plans to construct aforesaid project. 2.5 The Sponsor certifies that the project design plans shall comply, and the project when completed will comply, with the requirements of the Americans with Disabilities Act (ADA) of 1990 (42 U.S.C. §§ 12101 — 12213), 49 CFR Parts 27, 37 and 38 and 28 CFR parts 35 and 36. The Sponsor shall be exclusively responsible for integrated ADA compliance planning for all Sponsor streets, sidewalks and other facilities provided for public administration, use and accommodation, which is required of recipients and sub - recipients by 49 CFR § 27.11. State highways continued through corporate limits of the Sponsor shall be included in the Sponsor's comprehensive compliance plans. 2.6 To the extent permitted by law, all data prepared under this Agreement shall be made available to the Department without restriction or limitation on their further use, with exception of any documents or information that would be considered attorney /client privileged by the Sponsor. 2.7 The Department will conduct the environmental studies and prepare the National Environmental Protection Act documents as required for federally funded projects. 2.8 The Department will forward the e applicable. SECTION 3: LAND to FHWA for approval if UTILITY RELOCATION 3.1 The Sponsor warrants to the Department that, they have or will acquire all land, property, or rights -of -way needed for complete implementation of said project, free and clear of all obstructions and encumbrances and in full accordance with the Department's guidelines for Right -of -Way Acquisition on Federal -Aid Projects, the Uniform Relocation Act, the National Environmental Protection Act and all other applicable local, state and federal regulations. 3.2 The Sponsor shall be responsible for ensuring all proper tax documentation is filed and issued to recipients of funds paid on behalf of the Sponsor for Right -of -Way acquisition for this project. 3.3 The Sponsor warrants to the Department that it is knowledgeable of and will comply with the provisions of 42 U.S.C.A., Section 4601 -4655 and 23 U.S.C.A., Section 323 (as amended) and 49 C.F.R. Part 24 in the acquisition of all right -of -way and the relocation of any displacees. 9 URBAN PROJECT AGREEMENT - (NOT TO EXCEED) (11/23/2020) 3.4 The Sponsor shall remove, at its own expense, or cause the removal of, all encroachments on existing streets as shown on said plans, including all buildings, porches, fences, gasoline pumps, islands, and tanks, and any other such private installations and shall further remove or remediate any existing environmental contamination of soil and water from any source, known or unknown. 3.5 If the acquisition of right -of -way for this project causes the displacement of any person, business or non - profit organization, the Sponsor warrants it will provide and be responsible for the Relocation Assistance Program and all costs associated with the Relocation Assistance Program. The Department, upon request, will provide a list of service providers who have been prequalified to administer the Relocation Assistance Program. The Sponsor agrees to employ a service provider from the prequalified list provided by the Department. Prior to any relocation assistance payments to the Sponsor, all files with parcels requiring relocation assistance shall be submitted to the Department for audit and compliance review. The Sponsor shall notify the Department within seven (7) days of the date of an offer to acquire being provided to a property owner(s) on any parcel which will require relocation assistance. Written notifications regarding service providers, in -house personnel, appeals, offers to acquire or other related correspondence shall be properly addressed and remitted as follows:, Oklahoma Department of Transportatio Local Government Division 200 N.E. 218t Street Oklahoma City, Oklahoma 73105 -3204 3.6 The Sponsor warrants 1 or professional and person Sponsor in compliance with (Brooks Act) and the Regul Service Contracts at 23 CE applicable to the Sponsor." y,procurement, using federal funds, of property, goods (ices required for this project will be acquired by the deral procurement Regulations at 40 USC 1101- 1104 for Administration of Engineering and Design Related rt 172, as well as provisions of State purchasing laws 3.7 The Sponsor will certify to the Department prior to establishing a letting date that all existing utility facilities (if any) have been properly adjusted in full accordance with the Department's Right -of -Way and Utilities Division policies and procedures to accommodate the construction of said project; and will be solely responsible for payment of any and all contractor expenses, claims, suits and /or judgments directly resultant from any actual utility relocation delays. G URBAN PROJECT AGREEMENT -(NOT TO EXCEED) (11/23/2020) 3.8 The Sponsor shall have the authority pursuant to 69 O.S. § 1001 and 69 O.S. § 1004 to sell any lands, or interest therein, which were acquired for highway purposes as long as such sale is conducted in accordance with the above cited statutes. 3.9 The Sponsor agrees that if any property acquired utilizing Federal funding is disposed of or is no longer used in the public interest the Sponsor shall reimburse the Department at the current fair market value. 3.10 The Sponsor agrees to; Transmit copies of the instruments, including all deeds and easements, to the Department prior to the advertisement of bids for construction. Comply with the provisions of 42 U.S.C.A. § 460 (as amended) and, further comply with 49 C.F.R necessary right -of -way and relocation of all displ - Convey title to the State of Oklahoma on the Sponsor if the project is located on ft and 23 U.S.C.A. § 323 3 in the acquisition of all of land acquired in the name of Iighway System. SECTION 4: FUNDING SUMMARY 4.1 The Department and the Sponsor agree that the project will be financed at a not- to- exceed, TAP total estimated cost of $7,107,045.00, as described below: 4.2 Furthermore, the Department and the Sponsor agree that actual TAP costs incurred by project phases (JP 36591(04)) may exceed initial estimates. Costs between these project phases will be administratively adjusted based on actual cost of each phase, within the total cost of this Agreement, without formal supplemental Agreement, in so far as the total project agreement is not exceeded. FUNDING SOURCE => INCOG -STBG Sponsor STATE I TOTAL JOB PIECE DESCRIPTION ESTIMATED � SHARE I AMOUNT SHARE (%) AMOUNT NO. COST m i 36591(04) Construction - $7,107,045 ; 80 up to I $3,000,000 j (- Remainder $4,107,045 (with 6% Inspection) , „ '' a limit of i 1 Total 1 $7,107,045 Total => 1 $3,000,000 Total => i $4,107,045 4.2 Furthermore, the Department and the Sponsor agree that actual TAP costs incurred by project phases (JP 36591(04)) may exceed initial estimates. Costs between these project phases will be administratively adjusted based on actual cost of each phase, within the total cost of this Agreement, without formal supplemental Agreement, in so far as the total project agreement is not exceeded. URBAN PROJECT AGREEMENT -(NOT TO EXCEED) (11/23/2020) 4.3 It is understood by the Sponsor and the Department that the funding participation stipulated herein may be altered due to bid prices, actual construction supervision costs and non - participating costs incurred during construction. The Sponsor will be responsible for payment of any estimated local funding prior to advertising the project for bid. Upon final acceptance of this project, the total project cost will be determined, and the final amount of local funds (if any) will be determined by the Department's Comptroller per the terms of this Agreement. A refund will then be made by the Department to the Sponsor or additional funding will be requested. The Sponsor agrees to make arrangements for payment of any Department invoice within 45 days of receipt. SECTION 5: CONSTRUCTION RESPONSIBILITIES 5.1 The Sponsor agrees to comply with all applicable laws and regulations necessary to meet the Oklahoma Department of Environmental Quality (ODEQ) requirements for pollution prevention including discharges from storm water runoff during the planning and design of this project. Further, the Sponsor agrees and stipulates as stated in the ODEQ's General Permit 0KR10, dated September 13, 2017 or latest revision, to secure a storm water permit with the ODEQ for utility relocations, when required. It is also agreed that the storm water management plan for the project previously described in the document includes project plans and specifications, required schedules for accomplishing the temporary and permanent erosion control work, the site specific storm water pollution prevention plan and the appropriate location map contained in the utility relocation plans. 5.2 The Sponsor's responsibility for environmental cleanup will be a continuing responsibility to remediate any and all known and unknown environmental damage throughout the duration of this agreement with the Department in compliance with State and federal regulations. 5.3 The roadway improvements and all devices specified herein shall not be altered, removed, or cease to be operative without mutual written consent of the Department and the Sponsor. 5.4 Upon approval of this agreement and the plans, specifications, and estimates by the Sponsor, the Department, and the Federal Highway Administration (if applicable), the Department will advertise and let the construction contract for this project in the usual and customary legal manner. It is agreed that the projects herein contemplated are proposed to be financed as previously described, and that this Agreement, all plans, specifications, estimate of costs, acceptance of work, payments, and procedure in general hereunder are subject in all things at all times to all local, state and federal laws, regulations, orders, approvals as may be applicable hereto. 7 URBAN PROJECT AGREEMENT -(NOT TO EXCEED) (11/232020) 5.5 The Department shall provide a copy of the executed construction contract to the Sponsor, upon receipt of a written request. 5.6 The Department will notify the Sponsor of pre -bid dates, bid opening dates, and Transportation Commission award dates in writing upon receipt of a written request. 5.7 The Sponsor agrees that prior to the Department's advertising of the project for bids (as to that part of the project lying within the present corporate limits) it will: - Grant to the Department and its contractors, the right -of -entry to all existing streets, alleys, and Sponsor owned property when required, and other rights -of- way shown on said plans. - Remove at its own expense, or cause the removal of, all encroachments on existing streets as shown on said plans, including all signs, buildings, porches, awnings, porticos, fences, gasoline pumps and islands, and any other such private installations. - Prohibit parking on that portion of the project within the corporate limits of the Sponsor, except as may be indicated in the plans or hereafter approved by agreement with the Department. The Sponsor further agrees not to install, or permit to be installed, any signs, signals or markings not in conformance with the standards approved by the Federal Highway Administration and Manual on Uniform Traffic Control Devices (MUTCD). - Comply with the Department's standards for construction of driveway entrances from private property to the highway, in accordance with the Department's manual entitled "Policy on Driveway Regulation for Oklahoma Highways ", Rev. 5/96, 69 O.S. (2001) § 1210. - Maintain all right -of -way acquired for the construction of this project, as shown on said plans, in a manner consistent with applicable statutes, codes, ordinances and regulations of the Department and the State of Oklahoma. - Have the authority pursuant to 69 O.S. 2001 § 1001 and 69 O.S. 2001 § 1004 to sell any lands, or interest therein, which were acquired for highway purposes as long as such sale is conducted in accordance with the above cited statutes. Prior written approval by the Chief, Right -of -Way Division for the Department shall be required before any sale is made. 9 URBAN PROJECT AGREEMENT -(NOT TO EXCEED) (11/23/2020) 5.8 The Sponsor further agrees and warrants to the Department that, subsequent to the construction of said project, the Sponsor will: 1) Erect, maintain and operate traffic control devices, including signals, signs and pavement markings only in accordance with 47 O.S. 2011 §§ 15- 104 -15 -106, and subject to agreement of the Department: a) In the event that any traffic signal installed hereunder is no longer needed for the purposes designated herein, then the traffic signal installed hereunder shall not be moved by the Sponsor to any other point other than that which is approved by the Department prior to such removal. b) In the event there is no mutually agreed location for the reinstallation, the Sponsor will assume complete ownership of the equipment following removal, if the installation is ten (10) years old or older. If the installation is less than ten (10) years old and: 1) In the event the Sponsor desires total ownership of the equipment, the Sponsor shall reimburse the Department the original federal funding percentage share for the original equipment cost only, amortized for a ten(10) year service life, interest ignored, and assuming straight line depreciation. 2) In the event the Sponsor 'does not desire total ownership of the equipment, the Sponsor shall sell the equipment at public auction to the highest bidder. The Sponsor shall reimburse the Department the original federal funding percentage share of the proceeds of such sale. 2) Subject to agreement with the Department, regulate and control traffic on said project, including but not limited to, the speed of vehicles, parking, stopping and turns only in accordance with 47 O.S. 2011 §§ 15 -104- 15 -106, and to make no changes in the provisions thereof without the approval of the Department. It shall be the responsibility of the Sponsor to notify the Department of any changes necessary to ensure safety to the traveling public. 3) Maintain all drainage systems and facilities constructed, installed, modified or repaired in conjunction with this project or as may be otherwise necessary to ensure proper drainage for road surfaces constructed under the terms of this agreement. 0 URBAN PROJECT AGREEMENT -(NOT TO EXCEED) (11/23/2020) 4) Maintain all curbs and driveways abutting road surfaces constructed under the terms of this Agreement and all sidewalks adjacent thereto. 5) Maintain all right -of -way areas adjacent to road surfaces, including erosion control and periodic mowing of vegetation, in a manner consistent with applicable codes, ordinances and regulations. 6) For any portion of the project encompassed under this Agreement that is part of the State Highway System, the Sponsor shall maintain all that part of said project within the corporate limits of the Sponsor between the gutter lines and the right - of -way lines, and if no gutter exists, between the shoulder lines and the right -of- way lines, including storm sewers, all underground facilities, curbs and mowing, all in accordance with 69 O.S. Supp. 1994 §901 and all other applicable law. 7) On limited access highways where county roads or city streets extend over or under the highway or public roads are constructed on state rights -of -way but there is no immediate ingress and egress from the highway, responsibility shall be as follows: a. The public roads as defined in OAC 730:35 -1 -2 shall be maintained by the city or county and shall be included in their roadway mileage inventory. b. Where county roads or city streets extend over the highway, the roadway, approaches and bridge surfaces, including the deck, shall be maintained by the city or county. The approach guardrail, bridge structure, and highest clearance posting on the structure shall be maintained by the Department. c. Where county roads or city streets extend under the highway, the roadway approaches and advance signing shall be maintained by the city or county. The Department shall maintain the approach guardrail, bridge structure and surface, and the height clearance posting on the structure. 5.9 The Sponsor further agrees and warrants to the Department concerning any sign and highway facility lighting included as part of this project: 1) The Sponsor will, upon notice from the Department Engineer, provide at its own expense all required electrical energy necessary for all preliminary and operational tests of the highway lighting facilities. 10 URBAN PROJECT AGREEMENT - (NOT TO EXCEED) (11/23/2020) 2) Upon completion of the construction of said project, the Sponsor will be responsible for the maintenance and cost of operation of these highway lighting facilities, including all appurtenances thereto and including the sign lighting facilities. 3) It is specifically understood and agreed that the highway lighting and sign lighting facilities specified hereunder shall be continuously operated during the hours of darkness, between sunset and sunrise, and shall not be altered, removed or be allowed to cease operation without the mutual written consent of the Department and the Sponsor. 4) The Sponsor agrees to provide, on a periodic schedule, an inspection, cleaning and re- lamping maintenance program to assure the maximum efficiency of the highway lighting facilities. 5) In the event that the highway lighting facilities installed hereunder are no longer needed for the purposes designated herein, then the highway lighting facilities installed hereunder shall not be moved by the Sponsor to any point other than which is approved by the Department prior to such removal. 6) In the event there is no mutually agreed location for reinstallation, the Sponsor will assume complete ownership of the equipment following removal if the installation is twenty (20) years old or older. If the installation is less than twenty years old and: a) In the event the Sponsor desires total ownership of the equipment, the Sponsor shall reimburse the Department the original federal funding percentage share of the original equipment costs only, amortized for a twenty (20) year service life, interest ignored, and assuming straight line depreciation. b) In the event the Sponsor does not desire total ownership of the equipment, the Sponsor shall sell the equipment at public auction to the highest bidder. The Sponsor shall reimburse the Department the original federal funding percentage share of the proceeds of such sale. 5.10 The Department will appoint competent supervision and inspection of the construction work performed by the construction contractor and will provide such engineering, inspection and testing services as may be required to ensure that the construction of the project is accomplished in accordance with the approved Plans, 11 URBAN PROJECT AGREEMENT -(NOT TO EXCEED) (11/23/2020) Specifications and Estimates. The Department reserves the right to make such changes in said plans as may be necessary for the proper construction of said project. 1) The Sponsor agrees to provide such competent supervision as the Sponsor deems necessary during times that the work is in progress to ensure the completion of the project to the Sponsor's satisfaction and the Sponsor's representatives and the Department's representatives will cooperate fully to the end of obtaining work strictly in accordance with the plans and specifications. 2) The Sponsor will make ample provisions annually for the proper maintenance of said project, including the provision of competent personnel and adequate equipment, specifically, to provide all required maintenance of the project during the critical period immediately following construction and to keep the facility in good and safe condition for the benefit of the traveling public. 3) The Sponsor warrants to the Department that it will periodically review the adequacy of the aforesaid project to ensure the safety of the traveling public and should the Sponsor determine that further modifications or improvements be required, the Sponsor shall take such actions as are necessary to make such modifications or improvement. When operation modifications are required which in the opinion of the Department exceed the capability of the Sponsor's staff, the Sponsor agrees to retain, at the sole expense of the Sponsor, competent personnel for the purpose of bringing the improvement up to the proper standard of operation. 4) The Sponsor warrants and agrees that upon completion of the aforesaid project, the Sponsor assumes any and all financial obligations for the operation, use, and maintenance of the aforesaid project. SECTION 6: NON - DISCRIMINATION CLAUSE 1. During the performance of this agreement, the Sponsor, for itself, its assignees and successors in interest, agrees as follows: 1) Compliance with Regulations: The Sponsor shall comply with the regulations relative to nondiscrimination in federally- assisted programs of the Department of Transportation, Title 49, Code of Federal Regulations, Part 21, as they may be amended from time to time (hereinafter referred to as the Regulations), which are herein incorporated by reference and made a part of this agreement. 12 URBAN PROJECT AGREEMENT - (NOT TO EXCEED) (11/23/2020) 2) Nondiscrimination: The Sponsor, with regard to the work performed by it during the agreement, shall not discriminate on the grounds of race, color, sex, age, national origin, disability /handicap, or income status, in the selection and retention of contractors or subcontractors, including procurements of materials and leases of equipment. The Sponsor shall not participate either directly or indirectly, in the discrimination prohibited by Section 21.5 of the Regulations, including employment practices when the contract covers a program set forth in appendix B of the Regulations. 3) Solicitations for Subcontracts. Including Procurement of Materials and Equipment: In all solicitations, either by competitive bidding or negotiation, made by the Sponsor for work to be performed under a contract or subcontract, including procurements of materials or leases of equipment, each potential contractor or subcontractor or supplier shall be notified by the Sponsor of the Sponsor's obligations under this agreement and the Regulations relative to nondiscrimination on the grounds of race, color, sex, age, national origin, disability /handicap, or income status. 4) Information and Reports: The Sponsor shall provide all or directives issued pursuant accounts, other sources of in the State Department of Trar be pertinent to ascertain corn any information required of a who fails or refuses to'furnis[ State Department of Transp( appropriate, and shall set fort 5) nformation and reports required by the Regulations, lereto, and shall permit access to its books, records, rrmation and its facilities as may be determined by ;portation or the Federal Highway Administration to liance with such Regulations or directives. Where Sponsor is in the exclusive possession of another this information, the Sponsor shall so certify to the lation, or the Federal Highway Administration, as what efforts it has made to obtain the information. In the event of the Sponsor's noncompliance with the nondiscrimination provisions of this agreement, the State Department of Transportation shall impose such contract sanctions as it or the Federal Highway Administration may determine to be appropriate, including but not limited to: a. Withholding of payments to the Sponsor under the agreement until the Sponsor complies and /or b. Cancellation, termination, or suspension of the agreement in whole or in part. 13 URBAN PROJECT AGREEMENT - (NOT TO EXCEED) (11/23/2020) 6) Incorporation of Provisions: The Sponsor shall include the provisions of sub paragraphs 1) through 5) in every contract or subcontract, including procurements of materials and leases of equipment, unless exempt by the Regulations or directives issued pursuant thereto. The Sponsor shall take such action with respect to any contract or subcontract or procurement as the State Department of Transportation or the Federal Highway Administration may direct as a means of enforcing such provisions, including sanctions for noncompliance provided, however, that in the event a Sponsor becomes involved in, or is threatened with, litigation by a subcontractor or supplier as a result of such direction, the Sponsor may request the State Department of Transportation to enter into such litigation to protect the interests of the State; and, in addition, the Sponsor may request the United States to enter into such litigation to protect the interests of the United States. SECTION 7: TERMINATION 7.1 This Agreement may be terminated by any of the following conditions: a) By mutual agreement and consent, in writing of both parties. b) By the Department by written notice to the Sponsor as a consequence of failure by the Sponsor to perform the services set forth herein in a satisfactory manner. c) By either party, upon the failure of the other party to fulfill its obligations as set forth herein. d) By the Department for reasons of its own and not subject to the mutual consent of the Sponsor upon five (5) days written notice to the Sponsor. e) By satisfactory completion of all services and obligations described herein. 7.2The termination of this Agreement shall extinguish all rights, duties, obligations and liabilities of the Department and the Sponsor under this agreement. If the potential termination of this Agreement is due to the failure of either the Department or the Sponsor to fulfill their obligation as set forth herein, the non - breaching party will notify the party alleged to be in breach that possible breach of agreement has occurred. The party alleged to be in breach should make a good faith effort to remedy that breach as outlined by non - breaching party within a period mutually agreed by each party in writing. 14 URBAN PROJECT AGREEMENT- (NOT TO EXCEED) (11/23/2020) SECTION 8: GOVERNING LAW AND VENUE 8.1 Any claims, disputes or litigation relating to the solicitation, execution, interpretation, performance, or enforcement of this Agreement shall be governed by the laws of the State of Oklahoma and the applicable rules, regulations, policies and procedures of the Oklahoma Transportation Commission. Venue for any action, claim, dispute or litigation, mediation or arbitration shall be in Oklahoma County, Oklahoma. SECTION 9: DISPUTE RESOLUTION 9.1 The parties hereto have entered into this agreement in the State of Oklahoma and the laws of the State of Oklahoma shall apply. The parties agree to bargain in good faith in direct negotiation to achieve resolutions of any dispute and, if such efforts are unsuccessful, to retain a neutral mediation service to mediate the dispute prior to the filing of any court action. Mediation shall be conducted in the Oklahoma City area and the costs of such mediation shall be borne equally by the parties. If mediation is not successful, venue for any action brought to enforce the terms of this agreement shall be in Oklahoma County, State of Oklahoma. Each party shall bear any cost and attorney fees incurred by the party in such litigation. SECTION 10: PRIOR UNDERSTANDINGS 10.1 This agreement incorporates and reduces to writing all prior understandings, promises, agreements, commitments, covenants or conditions and constitutes the full and complete understanding and contractual relationship of the parties. SECTION 11: AMENDMENTS OR MODIFICATIONS OF AGREEMENT 11.1 No changes, revisions, amendments or alterations in the manner, scope of type of work or compensation to be paid by the DEPARTMENT shall be effective unless reduced to writing and executed by the parties with the same formalities as are observed in the execution of this Agreement. 15 URBAN PROJECT AGREEMENT - (NOT TO EXCEED) (11/23/2020) SECTION 12: RECORDS 12.1 The Sponsor is to maintain all books, documents, papers, accounting records and other evidence pertaining to costs incurred and to make such materials available at its respective offices at all reasonable times, during the agreement period and for three (3) years from the date of final payment under the agreement for inspection by the DEPARTMENT and the State Auditor and Inspector, and copies thereof shall be furnished to the DEPARTMENT, if requested. SECTION 13: HEADINGS 13.1 Article headings used in this Agreement are inserted for convenience of reference only and shall not be deemed a part of this agreement for any purpose. SECTION 14: BINDING EFFECTS 14.1 This Agreement shall be binding upon and inure to the benefit of the ODOT and the Sponsor and shall be binding upon their successors and assigns subject to the limitations of Oklahoma law. SECTION 15: SEVERABILITY 15.1 If any provision, clause or paragraph of this Agreement or any document incorporated by reference shall be determined invalid by a court of competent jurisdiction, such determination shall not affect the other provisions, clauses or paragraphs of this Agreement which are not affected by the determination. The provisions, clauses or paragraphs of this Agreement and any documents incorporated by reference are declared severable. SECTION 16: EFFECTIVE DATE 16.1 This Agreement shall become effective on the date of execution by the Department's Director or his designee. 16 URBAN PROJECT AGREEMENT - (NOT TO EXCEED) (11/2312020) IN WITNESS WHEREOF, the Director of the Department of Transportation, pursuant to authority vested in him by the State Transportation Commission, has hereunto subscribed his name as Director of the Department of Transportation and the Sponsor has executed same pursuant to authority prescribed by law for the Sponsor. The Sponsor, City of Owasso on this 16th of January 2024 and the Department on the day of 20_ CITY OF OWASSO APPROVED AS TO FORM AND LEGALITY LM M LIZ Julie, Lombardi, City Attorney Kelly Lewis, Mayor Attest: Juliann M. Stevens, City Clerk (SEAL): Approved — CITY OF OWASSO STATE OF OKLAHOMA DEPARTMENT OF TRANSPORTATION Recommended for Approval Local Government Division Engineer Date APPROVED AS TO FORM AND LEGALITY General Counsel Director of Project Delivery . "C• / l Date Deputy Director 17 Date Date TO: The Honorable Mayor and City Council FROM: Roger Stevens, Public Works Director SUBJECT: Right -of -Way Acquisition - East 96th Street North and North 1451h East Avenue Intersection Improvement Project DATE: January 11, 2024 BACKGROUND: City staff is currently involved in the acquisition of right -of -way and easements for the East 96th Street North and North 145th East Avenue intersection improvements. As part of those acquisitions, negotiations for the purchase of land from Calvary Missionary Church, Inc. for 24,963 square feet of right -of -way have been successfully completed and staff is seeking City Council authorization to purchase the land. DESCRIPTION /PURCHASE PRICE: Calvary Missionary Baptist Church. Inc. (Parcel 4.1) - The settlement offer for the right -of -way is approximately $3.44 per square foot, for a purchase price of $85,987.50. Compensation for damages in the amount of $36,367.50 is in addition to the right -of -way cost, for a total offer of $122,355.00. FUNDING: Funding for this purchase is included in the project budget from the Capital Improvements Fund. RECOMMENDATION: Staff recommends authorization for payment in the amount of $122,355.00 to Calvary Missionary Baptist Church, Inc., for the acquisition of right -of -way and compensation for damages, located at 9609 North 145th East Avenue. ATTACHMENTS: Location Map Claim Form O L CQ C C O C) U N L N _C Q w r Z co Z V/ LU c O ;^ Z) 0- U Q 1 O 1 V/ ZA e n� V ` o u N N n T m y V N n E n N N a 0 r M a N o O u N � 4+ - N —u c N u r o n, v c N m m u c c u N n, L O O r m 0 c i N a E w C U L !Z P O N . NC of �Ow n5 yN ti m q 9 N ti N d Lb 4t r O II v E r 'q. Ew an N E cc 0 mn N /JF /His3longry FORM 324a FYIL AOEHCY OHO6X N0. CTAw lla Calvary AVlissietrBaptist cw \I O:: Church Inc. Rot. W4023 THE COY OF OWASSO 910 Anamsc lOgAOfNCYOSEIMILY C.V Et lip ROU'laee Clxm F. FFIw CCOIIIR ➢V6AC11'ALY O! CFM p1AOW1I FOR $122,355.00 MOMIRIT CIWOFOWASSO CNr NO AIO I Ine,egn,Onwcaa!mb NO o mLMeNaN, CM of O.meo le4vuo W,nlh WYmOUO[W a[tlHna JJqq Ogc VJ n.bnme Er.O1M pMIOI WYmunl e,fnapeymeM mmbeltlaalm l[k bad�a� pee veAmton umemeaerdar. .Yw PN o. FIeH I! TA Renlplo1.Oad[ Or OaMna Oalc WTE FURCINSE ITEM OF OE OROER ER ------ MIT PRICE gMOURT DATE Payment for the purchase of 0.57 acres (24,9638F) of permanent right of way. (P4.1) Improvements to be purchased include: Rock landscaping $122,355.00 $122,355.00 Damages Include: Relocate Brick Monument Sign w! Electric & Security Light, Relocate Light Pole and Includes any and all damages within the acquisition area. Per settlement agreement, the City of Owasso will relocate 17' drive and add a 12' drive. Project: 96 -145 County: Rogers Parcel: 4.1 CLAIM 1 \10�r1, TM ma.M ➢mamm�aerm ewyewnnM.a apmt ellmRd,Pabaq m,ledymwn mam�a.ya NatuMdauP. ^Q, y �..'oTA R':(`,•. Iatrva COICOP ANant Milan Na M Mxa [SW[n or maNnC,.,[MA WMIa WSn X MIM&A COMO a avpi q Anow , . 1. . Martin Wl(iRM M Ne d,M.wAenradeeenlaflho mnlndor lot lM ponut, d moUtIM@eLde FM 2101 OMnp ellMnga elrebelepwdnmenlpenx nx NeKV kpro[xe Nacen4expab'alnp.pnol lgAa MfuX�y�a, �: AUBITO' xN,N[Nene[MUmn.nMa.m,mnexvtta m.an ➢aw.mnu.xaM nuM.npenmuyeM Co. In Pa to- adiyalndND N Na pCoRmenlol Na wnba[I and are LPry WNb da'm; ana.mNa NewnV, Co. r�C`Or µ`t, Fran a n*,L to Lle eenlneleb dyeNOA e, mnwl Ma b arn,la ON'an N den elb o,, rnd a, p[ % ➢A'I n, eM CO. 011 pp` b-omnlorCROWIM of all of WSnelme Cigle q mmq at attar Indoor Otranto, adMal,aelrymlMVadry, "" Derek Fisher Lr— !' $122355.00 Lo Vernon tp �I 122355.00 $122355.00 N pwemlW IM1SCen4aaomq,lanp PaMnL S,MMxrM C �J lwamelem. /'t / l APpenl $122355.00 One amnl:ry WnU,M, Oeer AOPIarx clm of Oklahoma QM at kocirrs wmmu UOU901 --� $122,355.00 /—T" Ty M,C— NaNncn' +a, c-W-ZS 64,—. r.f AMPMMI $122,355.00 vaM pxNFNMr ud.,yTNelaw,lu JW➢,7 Tn.c xoin..aA ®uNn Onl,nwea MPgWAL 1 taeq ePPmre Nb tl ebn fa, PeymeM am mmq X e611 e. Ran, Pa. . rvmbe to wmpllea wM Ne vaNUaNg Mn Or wa aMle. 1,I.gIA RMpomnr W,dm DOW Tao, BACKGROUND: In December 2010, the City Council approved user agreements for the operation of youth sports utilizing City -owned facilities. Thereafter, all existing and new organizations partnering with the City of Owasso, to administer youth sports, have entered into a standard user agreement. Bringing all sports facility user groups under a contractual agreement has allowed the City to: 1. Enter into more structured agreements with youth sports user group organizations; 2. Enhance financial transparency of City's youth sports operations; and, 3. Improve fiduciary responsibility to the City's constituent taxpayers. In Fall 2023, Champions Baseball notified staff they would not be available to renew their user agreement for the 2024 seasons. REQUEST FOR QUALIFICATIONS: City of Owasso staff developed a Request for Qualifications (RFQ) seeking qualified individuals or organizations interested in administering youth baseball activities at the Owasso Sports Park and maintaining all baseball facilities. The Request for Qualification asked those interested to demonstrate their experience in organ¢ing leagues and tournaments and their ability to provide for the upkeep and maintenance of the baseball fields located within the Owasso Sports Park. The request for qualifications was published and made available to anyone interested in managing the youth baseball program and facilities. Staff received one (1) Qualification from Union Kids Baseball (UKB), an organization that operated youth baseball at Tulsa's Hilti Park. Staff reviewed and evaluated the RFQ to gauge organization's ability to effectively administer the youth baseball program. The following are the expected components and criteria: - Organizational experience related in sports administration - Organizational experience related in facility maintenance - Verifiable references of sports management - Availability of organization to cooperate and comply with agreed responsibilities - Familiarity with City of Owasso standards, values and principles of management philosophy After evaluation, staff identified no concerns and reasoned Union Kids Baseball (LIKE) possessed the ability to manage youth sports baseball. �TVpEp`pwjbPELL [Paracin.PFpL TO: The Honorable Mayor and City Council FROM: Larry Langford, Director of Recreation and Culture SUBJECT: Youth Sports User Agreement - Baseball DATE: January 11, 2024 BACKGROUND: In December 2010, the City Council approved user agreements for the operation of youth sports utilizing City -owned facilities. Thereafter, all existing and new organizations partnering with the City of Owasso, to administer youth sports, have entered into a standard user agreement. Bringing all sports facility user groups under a contractual agreement has allowed the City to: 1. Enter into more structured agreements with youth sports user group organizations; 2. Enhance financial transparency of City's youth sports operations; and, 3. Improve fiduciary responsibility to the City's constituent taxpayers. In Fall 2023, Champions Baseball notified staff they would not be available to renew their user agreement for the 2024 seasons. REQUEST FOR QUALIFICATIONS: City of Owasso staff developed a Request for Qualifications (RFQ) seeking qualified individuals or organizations interested in administering youth baseball activities at the Owasso Sports Park and maintaining all baseball facilities. The Request for Qualification asked those interested to demonstrate their experience in organ¢ing leagues and tournaments and their ability to provide for the upkeep and maintenance of the baseball fields located within the Owasso Sports Park. The request for qualifications was published and made available to anyone interested in managing the youth baseball program and facilities. Staff received one (1) Qualification from Union Kids Baseball (UKB), an organization that operated youth baseball at Tulsa's Hilti Park. Staff reviewed and evaluated the RFQ to gauge organization's ability to effectively administer the youth baseball program. The following are the expected components and criteria: - Organizational experience related in sports administration - Organizational experience related in facility maintenance - Verifiable references of sports management - Availability of organization to cooperate and comply with agreed responsibilities - Familiarity with City of Owasso standards, values and principles of management philosophy After evaluation, staff identified no concerns and reasoned Union Kids Baseball (LIKE) possessed the ability to manage youth sports baseball. User Agreement Baseball Page 2 PROPOSED USER AGREEMENT: The proposed user agreement between the City of Owasso and Union Kids Baseball, D.B.A. Owasso Youth Baseball includes specific requirements intended to define a clear understanding of the responsibilities of the user group, reassuring taxpayers that their investment in baseball fields will be utilized appropriately through the user group and the City's commitment to accountability. The user agreement outlines maintenance standards for the Owasso Sports Park baseball facilities and utilizes inspections by City staff to ensure taxpayer assets are maintained to the required standards. RECOMMENDATION: Staff recommends authorization for the City Manager to execute an agreement with Union Kids Baseball, D.B.A. Owasso Youth Baseball, for the purpose of managing the City of Owasso's youth baseball activities. ATTACHMENT: Proposed Youth Baseball User Agreement CITY OF OWASSO USER AGREEMENT Organization: Union Kids Baseball, D.B.A. Owasso Youth Baseball Program / Activity: Baseball The City of Owasso is dedicated to promoting and maintaining the highest quality and enjoyable youth sports experience for players, parents, and coaches. Our mission is to teach the fundamentals of the game in a positive and safe environment with a strong focus on moral conduct, sportsmanship, and teamwork. The league strives to build self - esteem in young athletes to improve their abilities as players and conscientious citizens. The parties to this Agreement shall be the City of Owasso, Oklahoma, a municipal corporation, ( "the City'), and Owasso Youth Baseball ( "O.Y.B "). 1. USER LICENSE: The City hereby grants a User License to O.Y.B. for the administration and management of Baseball activities and for the use and maintenance of the fields at the Owasso Sports Park located at 10320 E. 116th Street North, Owasso, Oklahoma / 8200 N 91 E Ave, Owasso, Oklahoma. In consideration for such User License, O.Y.B. hereby agrees to the provisions of this Agreement. This Agreement may be terminated at any time by the City if O.Y.B. materially breaches the terms of this Agreement. 2. BOARD OF DIRECTORS: O.Y.B. will be governed by a volunteer Board of Directors focused on the oversight of the association. A. Board members shall not let their personal interests interfere with the decisions they make as directors. All officers and directors will sign an agreement that provides an "arm's length" relationship with any vendor doing business with the organization. No officer or director shall be a vendor of products or services to the organization. B. Officers of the board must be nominated and elected for a specified term. C. The beginning of the term of office for all elected officers should be an annual designated date following the annual meeting at which they are elected. D. The elected officers of this Club may serve consecutive terms or until their successors are elected. E. A`designated period must be publicized to all participants for nominations, allowing; any interested party to be considered for a leadership role. F. Election of the officers will take place annually. 3. PERSONNEL: O.Y.B. shall provide its own officials and all other necessary personnel. 4. WEBSITE: O.Y.B. shall create and maintain a website providing current information to the public. The website shall be updated as necessary throughout the year to contain accurate and timely information. 1IPa,, e A. Included will be O.Y.B. Baseball and tournament information. B. O.Y.B. will showcase "Buy Owasso" on their website and all appropriate marketing materials, as well as list things to do in Owasso. C. O.Y.B. agrees further to encourage its teams, tournament teams, and their families to utilize Owasso businesses by including a page with headings that list: 1. Hotels 2. Restaurants 3. Local Businesses D. Website will include a list of vendors identifying business addresses. 5. USER LEASE FEE: O.Y.B. shall make agreed -upon improvements and invest resources in the Baseball facilities in lieu of lease fees. Proposed improvements will be submitted on FORM #2 of Verification Documents, which identifies annual improvements and future plans. The investment plan will include items, a budget, and a completion target. Form #2 will be reviewed, approved /disallowed during the annual contract review. Only approved improvements will count toward the investment requirement. 6. INVESTMENT DOCUMENTATION: All improvements completed will be maintained on FORM #3 of Verification Documents. Inspections of improvements will be conducted by City staff for approval. FORM #3 will describe improvement, improvement cost, and all receipts and/or invoices. Failure to timely remit documentation shall be a material breach of this Agreement and may result in termination of the Agreement by the City. 7, CONCESSION: O.Y.B. may provide concessions and retail sales (t- shirts, hats, lanyards, equipment etc.) during Baseball league season and at all tournaments at the Baseball field at Owasso Sports Park. It is the responsibility of O.Y.B. to provide the City of Owasso with the sales tax permit number and for O.Y.B. to comply with all state and federal tax regulations. O.Y.B. must, prominently, display a sales tax permit when providing concessions and /or retail sales. Should O.Y.B. have an exemption permit issued by the Oklahoma Tax Commission, O.Y.B. shall remit a copy to the City of Owasso before engaging in fundraising sales. This is in addition to the Sales lax Permit. 8. SCHOLARSHIPS: Scholarships shall be provided by O.Y.B. to players who meet that organization's criteria for financial hardship and need. 9. PARTICIPATION REPORT: O.Y.B. will provide the City with a seasonal status report at the beginning of each season on FORM #5 of Verification Documents. Form #5 will include all applicable information to verify the number of players and teams along with enrollment change from the previous season. 2 IPa.e 10. ANNUAL FINANCIAL REPORTS: O.Y.B. will be a registered Oklahoma not -for- profit organization and comply with all IRS reports and forms applicable to their organization. O.Y.B. agrees to provide financial documents if /when requested by the City's Finance Department staff. All financial documents, records, and detailed accounts of financial operations shall be open to the City's Finance Department for review and /or audit with reasonable notice, given that such review or audit will occur. Failure by O.Y.B. to provide reports in compliance with the provisions within this section shall constitute a material breach of the contract and may result in termination of the Agreement. 11. TERM: The initial Agreement between the City and O.Y.B. shall be for a period of one year and become effective on the_ day of January 2024, ending the 31 day of, October 2024. In subsequent years, an annual review will be conducted with the organization's leadership. The defined Agreement may be automatically renewed annually with City consent and absent any non - compliance issues. 12. GENERAL MAINTENANCE: O.Y.B. shall be responsible for all routine maintenance and repairs of lighting, fences, "Baseball fields, bleachers, concession areas, restroom(s), and any other facilities utilized during the Baseball season at the designated Baseball fields at Owasso Sports Park with no charge to the City. O.Y.B. shall also be responsible for the general clean -up and collection of trash and debris in and around all Baseball fields at the end of the last game each day. 13. MAINTENANCE STANDARDS: O.Y.B. agrees to maintain the high quality of playing surfaces on the Baseball fields at Owasso Sports Park in good working order sufficient to ensure the safety of the players, spectators, coaches, managers, and all other officials and personnel at all times. A. The Baseball field, as often as needed, will have dirt added, will be sprayed for weeds, will be aerated and fertilized, will have dirt lips and buildups removed, and will be mowed and swept. B. The following conditions must be maintained within the duration of this contract in the following areas: 1. Complete turf coverage within the playing field fences except for areas that are intended to remain dirt. 2. Playing surfaces will be kept uniform and level to allow for proper drainage and player safety. All soil areas will be maintained with quality soil. Regular field maintenance will be performed in such a way as to avoid lip or ridge formation resulting from loose dirt being dragged or pushed into grass areas. 3 1 P a - e 3. Mowing of grass area inside of the field's fence line. Mowing heights will be maintained between % inches and 2'/ inches depending on the season and variety of grass. 4. Edging should be performed on a regular basis as needed to provide consistent edges and lines. 5. Outfield fences will be kept free of any thatch that might impede drainage. 15. INSPECTION: All Baseball facilities will be in working order on the date this contract becomes effective and will be inspected by both the City and O.Y.B. before this Agreement shall be executed. The City retains the right to enter upon the Baseball field and facilities at any time for inspection, maintenance, repairs, or any other purpose related to this Agreement. The City will inspect the Baseball field and facilities bi- annually for the duration of this contract year, to determine whether or not the Baseball field and facilities are being maintained by O.Y.B. in compliance with the specified maintenance standards. FORM # 1 of Verification Forms will be used to detail the results of each inspection and shall be provided to O.Y.B. upon request. In the event the Baseball field or facilities are not in compliance with the maintenance standards specified by this Agreement, the City shall provide a written Notice of Noncompliance to O.Y.B. within five (5) business days from the date of the inspection. The Notice of Noncompliance will state the specific nature and extent of each area of noncompliance and shall require O.Y.B. to remedy the violation and become compliant in each area within a stated period of time to be negotiated with O.Y.B. but ultimately decided by the City. Failure to do so shall be a material breach of this Agreement and may result in termination of the Agreement by the City. 16. IMPROVEMENTS OR EMERGENCY REPAIRS: The Baseball field and facilities at Owasso Sports Park shall always remain the property of the City, and no improvements or structures may be built upon the fields or facilities without written permission from the City. The City shall be responsible for all major repairs necessary at Owasso Sports Park, including restrooms, plumbing, parking lots, and general electrical issues. 17. RESTROOMS: The City will provide restroom facilities at the Owasso Sports Park North to be utilized by Owasso Youth Baseball. O.Y.B. will provide ample restroom supplies for each restroom facility utilized by participants. O.Y.B. will open, stock, and clean the restroom(s) facilities prior to each scheduled game and practice, including both league and tournament play. O.Y.B. will lock restroom(s) after each scheduled game and practice, including both league and tournament play. The City will provide restroom maintenance and supplies at the Owasso Sports Park South to be utilized by O.Y.B. /Heart Healthy 5 K patrons. O.Y.B. shall pay $307.00 monthly for restroom maintenance on a regularly recurring schedule no later than the due date defined in the service agreement. 4 1Page The City will lock the restroom daily at dusk when the Sports Park field lights are off. O.Y.B. will be responsible for locking the restroom at/after dusk when the Sports Park field lights are on, and O.Y.B. is having scheduled games and practices, including both league and tournament play. 18. UTILITIES: O.Y.B. shall be responsible for the cost of usage for, but not limited to, water, electric, gas, ethernet, cable, and any other service(s) required for: concession stand(s) (permanent or temporary), office(s), equipment storage facility /facilities, and officiant's building(s). 19.INSURANCE: O.Y.B. shall maintain general liability insurance covering the premises and activities of the Baseball facilities and program at Owasso Sports Park in an amount not less than Two Million Dollars ($2,000,000) and shall name the City as a co- insured. A copy of the policy shall be provided to the City Manager of the City of Owasso at the time this Agreement is executed. O.Y.B. shall maintain the required insurance with an insurer carrying a Best's "A" or equivalent rating that is licensed and admitted to write and issue insurance policies in the State of Oklahoma. 20. INDEMNIFICATION: As partial consideration for this Agreement, O.Y.B. agrees to indemnify, defend (at the City's option), and hold harmless the City, its employees, officials, agents, representatives, and volunteers from and against any and all liabilities, damages, injuries (including death); property damage (including loss of use), claims, liens, judgments, costs, expenses, suits,; actions, or proceedings, reasonable attorney's fees, and actual damages of any kind or nature, arising out of or in connection with any aspect of the acts, omissions, negligence or misconduct of O.Y.B.., its competitors, invitees, licensees, members, volunteers, representatives, employees, agents, officers, contractors or subcontractors, including but not limited to permitted uses of the fields and facilities, any injury or damage that occurs on or about the fields or facilities relating to Baseball activities, or O.Y.B..'S performance or failure to perform the terms and conditions of this Agreement. O.Y.B.. shall promptly notify the City of any serious injuries occurring on the fields or facilities and of any claim asserted by any individual. 21. LAWS: This Agreement shall be governed by the laws of the State of Oklahoma. Exclusive jurisdiction and venue for any action relating to this Agreement shall be solely in the District Court of Tulsa County, Oklahoma. 22. ENTIRE AGREEMENT: This Agreement constitutes the entire agreement and understanding between the parties, and supersedes all proposals, oral or written, or other communications between the parties with respect to the subject matter of this Agreement. If any provision of this Agreement shall be held invalid, such invalidity shall not affect the other provisions herein, and the provisions of this Agreement are intended to be and shall be deemed severable. IN WITNESS HEREOF, the parties have caused this Agreement to be executed on the date set forth below. __ 5 1Paae Executed the 16th day of January 2024. CITY OF OWASSO: Warren Lehr City Manager Attest: Juliann M. Stevens City Clerk Approved as to Form: Julie Lombardi City Attorney and General Counsel O.Y.B. Representative: O.Y.B. Representative Signature: 6 1Page CITY OF OWASSO HEALTHCARE SELF INSURANCE FUND CLAIMS PAID PER AUTHORIZATION OF ORDINANCE #789 AS OF 01110 VENDOR DESCRIPTION AETNA HEALTHCARE MEDICAL SERVICE HEALTHCARE MEDICAL SERVICE HEALTHCARE MEDICAL SERVICE HEALTHCARE DEPT TOTAL DELTA DENTAL DENTAL MEDICAL SERVICE ADMIN FEES DENTAL DEPT TOTAL VSP VISION MEDICAL SERVICES VISION DEPT TOTAL HEALTHCARE SELF INSURANCE FUND TOTAL AMOUNT 5,655.37 29,882.66 83,957.21 119,495.24 5,487.59 3,374.82 8,862.41 3,033.61 3,033.61 131,391.26 CITY OF OWASSO GENERAL FUND & HALF -PENNY SALES TAX FISCAL YEAR 2023 -2024 Budgetary Basis Statement of Revenues & Expenditures As of December 31, 2023 FUND BALANCE (Budgetary Basis) Beginning Balance Ending Balance Q:\Finance (120)\Accounting \Reports \Current FY\GF Financials 25,724,503 18,136,196 $ 20,506,749 $ 7,574,068 MONTH YEAR PERCENT TO -DATE TO -DATE BUDGET OF BUDGET REVENUES: Taxes $ 3,834,445 $ 22,876,868 $ 45,536,655 50.24% Licenses & permits 29,763 182,602 288,788 63.23% Intergovernmental 96,509 560,254 1,279,988 43.77% Charges for services 57,031 394,160 773,427 50.96% Fines & forfeits 36,172 179,993 274,896 65.48% Other 20,561 326,405 146,627 222.61% Interest 38,433 244,222 207,963 117.44% TOTAL REVENUES $ 4,112,913 $ 24,764,505 $ 48,508,343 51.05% EXPENDITURES: Personal services $ (2,304,108) $ (13,204,585) $ (28,021,803) 47.12% Materials & supplies (82,905) (722,145) (2,091,670) 34.52% Olherservices (267,330) (2,064,200) (4,563,945) 45.23% Capital outlay (143,856) (1,767,158) (10,972,778) 16.10% TOTAL EXPENDITURES $ (2,798,199) $ (17,758,088) $ (45,650,196) 38.90% REVENUES OVER EXPENDITURES $ 1,314,715 $ 7,006,417 $ 2,858,148 TRANSFERS IN (OUT): Transfers in $ 1,946,514 $ 11,628,226 $ 23,251,366 50.01% Transfers out (3,054,200) (18,290,850) (36,671,642) 49.88% TOTAL TRANSFERS $ (1,107,686) $ (6,662,624) $ (13,420,276) 49.65% NET INCOME (LOSS) $ 207,029 $ 343,793 $ (10,562,128) ENCUMBRANCES OUTSTANDING $ (5,561,547) FUND BALANCE (Budgetary Basis) Beginning Balance Ending Balance Q:\Finance (120)\Accounting \Reports \Current FY\GF Financials 25,724,503 18,136,196 $ 20,506,749 $ 7,574,068 Limestone Construction U.C. P.O. Box 1522, Owasso, OK 74055 Phone: (918) 510-2021 Fax: (888) 671-4959 Contract Change Order Project Name: Owasso Fire Stations Job Number: 23 -002 Owner /Contractor: Owasso Fire Department Change Order No: 13 Address: 2015 Cedar Street Date: 12/20/23 Owasso, OK Phone: 74055 ITEM NO. Description /Unit Breakdown /Unit Costs Cost (indicate +or -) 1 Ductwork run outs for existing basement system, F /A, fire damper, divider, and deduct for 6 mini - VRFs $5,317.63 3. Current Contract Amount (1 +2) $2,474,925.00 4. This Change Order Total Amount 2 Credit back for electrical descope for 6 mini -VRFs ($1,817.63) 6. Total Cost Of All Change Orders To Date (2 +4) $95,709.60 7. Contingency to date (Original Amount $177,643.00) 2 Credit back for roofing descope for 6 mini -VRFs ($3,500.00) SUBTOTAL FROM ATTACHED SHEETS (IF ANY) SUBTOTAL (Labor & Materials) = $ TOTAL COST (This Change OrderOnly) = $ Change In Contract Duration /Time By This Change Order ( 1 )(Increase)(Decrease) BY 0 WORKING DAYS NEW CONTRACT COMPLETION DATE: CONTRACT STATUS 1. Original Contract Amount $2,474,925.00 2. Net Change By Previous Change Order(s) $95,709.60 3. Current Contract Amount (1 +2) $2,474,925.00 4. This Change Order Total Amount $0.00 5. New Contract Amount (3 +4) $2,474,925.00 6. Total Cost Of All Change Orders To Date (2 +4) $95,709.60 7. Contingency to date (Original Amount $177,643.00) $81,933.40 Name sd OXFALPa..1. • REAL Char M,- 0ommaNry ...removing obstacles standing in the way of people celebrating their lives. 200 S Main St PO Box 180 Owasso, OK 74055 TO: The Honorable Mayor and City Council City of Owasso FROM: Robert Curfman, Audit Committee Chair SUBJECT: Fiscal Year 2022 -23 Audit Report DATE: January 9, 2024 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 9, 2024. Members of the Audit Committee are Robert Curfman, Chair; Jack Murray, Vice Chair; Andrea O'Dell, Secretary; Nick Sokolosky, member; and Doug Bonebrake, 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 2022 -2023. 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. (918) 376 -1500 City of Owasso FAX (918) 376 -1599 A City Of Character www.cityofowasso.com January 9, 2024 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 16, 2024, council agenda to give formal notice that the fiscal year 2023 audit has been completed: "Notification of the receipt and filing of the City's annual financial audit for the fiscal year ended June 30, 2023:" �a��- WL6�rre�RobertEvr#rrmn,Ctrair J'ie� C' '�� City of Owasso Audit Committee E-41 Annual Compoe ensive Financial Report City of Owasso, Oklahoma Year Ended June 30, 2023 Annual Comprehensive Financial Report City of Owasso, Oklahoma Year Ended June 30, 2023 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, 2023 TABLE OF CONTENTS INTRODUCTORY SECTION Page Letter of Transmittal i - viii GFOA Certificate of Achievement ix List of Principal Officials x Organizational Chart xi FINANCIAL SECTION Independent Auditors' Report A - C Management's Discussion and Analysis MDA -1 - MDA -10 Basic Financial Statements Government -wide Financial Statements: Statement of Net Position Statement of Activities Fund Financial Statements: Governmental Funds: Balance Sheet Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position Statement of Revenues, Expenditures and Changes in Fund Balances Reconciliation of Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities 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 58 Required Supplementary Information Schedule of Changes in the City's Total OPEB Liability and Related Ratios RSI - 1 Schedule of Changes in Net 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, 2023 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 (Asset) 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 - 1 1 Schedule of Contributions Oklahoma Municipal Retirement Fund RSI - 12 Notes to Required Supplementary Information Oklahoma Municipal Retirement Fund RSI - 13 Notes to Required Supplementary Information - Budget Comparison RSI - 14 Schedule General Fund Budgetary Comparison Schedule Schedule of Revenues, Expenditures and Changes in Fund Balance RSI - 15 - RSI - 19 Reconciliation of the General Fund Balance Sheet to the Budgetary General Fund RSI - 20 Major Special Revenue Fund Budgetary Comparison Schedule: Major Special Revenue Fund Definitions RSI -21 Half -Penny Sales Tax Fund Budgetary Comparison Schedule Schedule of Revenues, Expenditures and Changes in Fund Balance RSI - 22 Reconciliation of the Half -Penny Sales Tax Fund Balance Sheet to the Budgetary Half Penny Sales Tax Fund RSI - 23 Other Supplementary Information - Supplemental Combining and Individual Fund Financial Statements and Schedules 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, 2023 TABLE OF CONTENTS FINANCIAL SECTION (continued) Page Other Supplementary Information - Supplemental Combining and Individual Fund Financial Statements and Schedules (continued) Juvenile Court Fund OSI-10 Hotel Tax Fund OSI-11 Stormwater Management Fund OSI-12 Federal Grants Fund OSI-13 Opioid Settlement Fund OSI-14 Ambulance Capital Fund 051-15 Tax Incremental Financing Fund OSI-16 Park Development Fund OSI-17 Capital Projects Grant Fund OSI-18 Debt Service Fund OSI-19 Major Capital Project Fund Budgetary Comparison Schedules Major Capital Project Fund Definitions OSI-20 Vision Recapture Tax Fund Budgetary Comparison Schedule S-2-S-7 Schedule of Revenues, Expenditures and Changes in Fund Balance OSI -21 Reconciliation of the Vision Recapture Tax Fund Balance S-13-S-17 Sheet to the Budgetary Vision Recapture Tax Fund OSI-22 Capital Improvement Fund Budgetary Comparison Schedule S-24-S-30 Schedule of Revenues, Expenditures and Changes in Fund Balance OSI-23 Reconciliation of the Capital Improvement Fund Balance Sheet to the Budgetary Capital Improvement Fund OSI-24 Internal Service Funds Internal Service Funds Definitions OSI -25 Combining Balance Sheet OSI-26 Combining Statement of Revenues, Expenditures and Changes in Net Position OSI-27 Combining Statement of Cash Flows OSI - 28 - OSI - 29 Budgetary Comparison Schedule Vehicle Maintenance Fund OSI -30 Budgetary Comparison Schedule Self- Insurance Funds OSI-31 STATISTICAL SECTION - UNAUDITED Statistical Section Definitions S-1 Financial Trends S-2-S-7 Revenue Capacity S-8-S-12 Debt Capacity S-13-S-17 Demographic and Economic Information S- 18-S-23 Operating Information S-24-S-30 Appendix of Abbreviations S -31 INTRODUCTORY SECTION Sa 0.. ople REAL Chen. •REAL Community December 19. 2023 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, 2023. 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 taw, municipalities are required to publish a complete set of audited financial statements. This report fulfills that requirement for the year ended June 30, 2023. To the best of our knowledge and belief, the enclosed report is accurate in all material respects and is organized in a manner designed to fairly present the financial position and results of operations of the City as measured by the financial activity of its various funds. The accompanying disclosures are necessary to enable the reader to gain the maximum understanding of the City's financial affairs. INDEPENDENT AUDITORS' REPORT The basic financial statements and related notes have been audited by the independent firm of Certified Public Accountants, BT &Co., P.A. After examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation, the independent firm concluded that there was a reasonable basis to render an unmodified opinion on the financial statements of each opinion unit that collectively comprise the City's basic financial statements, concluding that the basic financial statements are fairly presented in conformity with the accounting principles generally accepted in the United States of America (U.S. GAAP). The independent auditors' report can be found on the pages prior to the MD &A in the Financial Section of this report. Page i 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 httos: / /www.citvofowasso.com /304 /Finance. 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 39,899 people in 2022 -23, representing a 3.01% increase over 2022. 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, Page ii 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. SERVICES The City provides a full range of basic municipal services, including police and fire protection, ambulance service, street construction, parks, neighborhood revital¢ation, 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 si to the City Council. The Council reviews, refines, changes, and adopts it according to the policies and priorities it wishes to see implemented. Governmental funds with legal annually appropriated budgets are as follows: General Fund Special Revenue Funds: Half -Penny Sales Tax Fund Ambulance Service Fund E -911 Fund Cemetery Care Fund Emergency Siren Fund Juvenile Court Fund Hotel Tax Fund Stormwater Management Fund Federal Grants Fund Opioid Settlement 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, Page iii 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 2022 -23 increased by $3 million or 6.2% totaling $51.1 million compared to $48.1 million in FY 2021 -22. The FY 2022 -23 increase is primarily attributable to a growing community, retailers who attracted shoppers from surrounding communities, and increased collections related to online sales. Owasso's economic outlook is positive based on the following: • 3.7% projected gain in sales tax base • 12.1% projected gain in use tax base • 1% projected population growth • Increases in multifamily building permits The City is expected to consistently rise and outpace both the state and Tulsa region on most economic measures throughout 2023 -24. 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 2023 -24. Currently, Owasso is ranked the third largest retail market in Tulsa County. 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 multifamily developments in the city limits and new developments in the county continue to contribute to growth in sales tax collections for Owasso. Page iv There are currently nine hotels located in the City of Owasso. FY 2022 -23 hotel tax revenues increased 5.0% over FY 2021 -22. 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 2022 -23, there were 105 residential building permits and 53 multi - family building permits issued. The combined construction value of these permits is $24.5 million. Over the past three fiscal years, over 750 multifamily building permits have been issued. There were 17 commercial permits issued in fiscal year 2022 -23 with a total construction value of $29.2 million. The outlook for commercial development within the City is positive. Job growth is projected to remain strong in Owasso. DEBT The City of Owasso has no outstanding General Obligation debt and, therefore, has not been bond rated in recent years. All current financing has been provided via the Owasso Public Works Authority. LONG -TERM FINANCIAL PLANNING The City utilizes a five -year Capital Improvement Program (CIP) and utilizes a citizen- involved CIP committee who makes recommendations to Council on funding priorities. CAPITAL IMPROVEMENTS PLAN (CIP) The Capital Improvement Committee was established in 1988 under Ordinance No. 395. The purpose of the committee is to develop, prioritize, and recommend the capital improvement needs of the City, creating a more planned process than had existed before it was established. Since that time, the City has developed and adopted several infrastructure master plans that help provide insight into the present and future needs of the City. The committee is comprised of 2 City Council members; 1 Owasso Economic Development Authority representative; 1 Planning Commissioner; 6 citizens at large; the City Manager; the Assistant City Manager; and the Finance Director. The Committee meets quarterly to discuss and plan for the City's capital needs primarily in Streets, Water, Sewer, Stormwater, Facilities, and Parks. However, capital needs extend beyond infrastructure and may include large equipment purchases that exceed the City's ability to provide through General and Half -Penny Funds revenues. Page v 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 httpi//cityofowasso.com/DocumentCenter/View/l 045 Current list of projects eligible for Capital Improvement funds http://weblink.citvofowasso.com/WebUink8/0/doc/i 89147/Page 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 2022 -23, Council set the budgeted combined ending reserves at 25% of the General Fund and Half -Penny Sales Tax appropriated revenues net of sales tax transfers to the Owasso Public Works Authority. In recent years, reserves were intentionally budgeted above the normal target to allow for unexpected revenue losses related to the pandemic. By City Ordinance, utTty 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. Page vi • 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 same time a 0.6% Vision 2025 Tulsa County sales tax expired. In August 2023, voters approved a renewal of the 0.55% sales tax, making the tax permanent. 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% Page vii 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, 2022. This was the 7th 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. cmemrwapp Cady Novozinsky, Director of Finance Teresa Kimball, Assistant Director of Finance Page viii n 0 Ik io 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, 2022 Executive Director /CEO Page ix CITY OF OWASSO, OKLAHOMA LIST OF PRINCIPAL OFFICIALS June 30, 2023 CITY COUNCIL MEMBERS Kelly Lewis, Mayor Alvin Fruga, Vice Mayor Dr. Paul Loving 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 x s� Rople • cter • REAL Community ORGANIZATION CHART Citizens of Owasso City of Owasso City Council City Attorney / General Counsel City Manager Assistant City Manager City Clerk & Administrative Support Community Finance Fire /EMS Services Human Resources Police Services Public Works Recreation & Culture Strong Court Building & Vehicle Maintenance Page xi FINANCIAL SECTION (9ED [edified Public Arromtlants 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, 2023, 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, 2023, 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 design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. 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 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 Internatimal, 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 Intemationat A W O T 0 0 m 0 0 a a On m m m 0 A m N N W A a N V 0 `n 0 0 0 in w 0 N W N Gt V m IQ w w m Co F Cr 0 Z3 e n 0 h a 0 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 GARS, 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 19, 2023 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 19, 2023 Topeka, Kansas Page C Management's Discussion and Analysis City of Owasso, Oklahoma June 30, 2023 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 30,2023. 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, 2023, the City's total net position increased by $26.8 million or 10.2% from the prior year. This was due primarily to the increase in sales and use tax revenues resulting from a growing community and new retailers, as well as an increase in investment income. • During the year, the City's expenses for governmental activities totaled $44.8 million and were funded by program revenues of $13.1 million and further funded with taxes and other general revenues (net of transfers) that totaled $53 million. • Total program revenues in the City's business -type activities exceeded expenses by approximately $1.5 million. This increase in net position was due primarily to increased usage rates and 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, 2023, the General Fund reported a total fund balance of $20.7 million, an increase of $5.0 million from the prior year due to conservative budgeting of sales and use tax revenues as well as an increase in grant funding. • For budgetary reporting purposes, the General Fund reported total resources equal to 103.4% of budget, and expenditures which were 91.0% of budget. OVERVIEW OF THE FINANCIAL STATEMENTS The financial statements presented herein include all of the activities of the City of Owasso (the "City ") and its component units using the integrated approach as prescribed by GASB Statement No. 34. Included in this report are government -wide statements for three categories of activities — governmental, business type, and discretely presented component units. The government -wide financial statements present the complete financial picture of the City from the economic resources management focus using the accrual basis of accounting. They present governmental activities and business type activities separately and combined. These statements include all assets of the City (including infrastructure capital assets) as well as all liabilities (including all long -term debt.) REPORTING THE CITY AS A WHOLE The Statement of Net Position and the Statement of Activities One of the most frequently asked questions about the City's finances is, "Has the City's overall financial condition improved, declined or remained steady over the past year ?" The Statement of Net Position and the Statement of Activities report information about the City as a whole and about its activities in a way that helps answer this question. These statements include all assets and liabilities using the accrual basis of accounting. All of the current year's revenues and expenses are taken into account regardless of when cash is received or paid. MDA Page 1 Management's Discussion and Analysis City of Owasso, Oklahoma June 30, 2023 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. 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 MDA Page 2 Management's Discussion and Analysis City of Owasso, Oklahoma June 30, 2023 Government -Wide financial statements are explained in a reconciliation following each Governmental Fund financial statement. Proprietary funds - When the City charges customers for the services it provides - whether to outside customers or to other units of the City - these services are generally reported in proprietary funds. Proprietary funds are reported in the same way that all activities are reported in the Statement of Net Position and the Statement of Revenues, Expenses and Changes in 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 2021 -22 or FY 2022 -23. A FINANCIAL ANALYSIS OF THE CITY AS A WHOLE NET POSITION The City's combined net position increased from $262.7 million to $289.4 million between fiscal years 2021 -22 and 2022 -23. Looking at the net position of governmental and business -type activities separately, governmental activities increased $21.4 million primarily due to growing sales and use taxes, public safety grants, and delays in capital spending. The net position for Business -type activities increased by $5.4 million primarily due to City transfers to the Trust Authority and growing sales tax collections. For FY 2022 -23, 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 8 Management's Discussion and Analysis City of Owasso, Oklahoma June 30, 2023 A comparative, condensed presentation of net position follows (reported in thousands). Current and other assets Capital assets, net Total assets Deferred outflows of resources Long -tens debt outstanding Other liabilities Total liabilities Deferred inflows of resources Net position Net investment In capital assets Restricted Unrestricted Total net position 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, 2023, 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 grant funding, conservative budgeting of sales and use taxes, and an increase in investment income. MDA Page 4 Total Governmental Business-Type Percentage Activities Activities Total Change 2022 7023 2022 2023 2022 2023 2022 -2023 $ 78.105 $ 86,721 $ 29,534 $ 20,770 $ 107,639 $ 107,491 -0.1% 170,206 182,004 84,963 91,894 255,169 273,898 7.3% 248,311 268,725 114,497 112,664 362.808 381,389 5.1% 7,821 11,328 476 1,020 8,297 12.348 48.8% 14,883 28,266 67,967 63,002 82,850 91,268 10.2% 3,924 7,382 4,775 3,778 8,699 11,160 28.3% 18.807 35,648 72,742 66,780 91,549 102,428 11.9% 15,719 1,405 1,165 462 16,884 1.867 -88.9% 169,811 180,140 53,640 54,524 198,556 210,255 5.9% 39,907 45,168 1,715 1,791 41,622 46,959 12.8% 11,888 17,692 14,289 9,873 22,494 32,228 43.3% 221,606 243,000 41.066 46.442 $262,672 $ 289,442 10.2% 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, 2023, 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 grant funding, conservative budgeting of sales and use taxes, and an increase in investment income. MDA Page 4 Management's Discussion and Analysis City of Owasso, Oklahoma June 30, 2023 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. Governmental Fund Balances General Fund -The fund balance increase is primarily due to tax collections and Municipal Court fines 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, a large project to be funded by the Vision Recapture sales tax is in the design phase, resulting in an accumulation of fund balance until the project is 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. MDA Page 5 Total Gavammental Badness -Type Pereenloge AcRvlOes A.11M.s Total Change 2]22 2023 2022 2023 2022 2023 2022 -2023 EXPENSES General gnv rvnent $ 9,006 $ 6,446 $ - $ - $ 9.006 $ 6.446 -28.4% Public safety 21,839 26,011 - - 21,839 26,011 19.1% Community development 842 903. - - 842 903 72% Recrealian and cul 1.965 2,198 - - 1,965 2,198 11.9% Economlc development 449 461 - - 449 461 2.7% Pubticworb 8.105 8.738 - - 8,105 8.738 79% Water - - 7,082 7,370 7,082 7,370 4.1% Wastewater - - 5,646 5.889 5,646 51889 4.3% Sanitation - - 1,889 2.126 1,889 2,126 125% Recycle center - - 256 358 256 350 3967 Economic development - - 473 403 473 403 -146% Golf - 1.684 2.109 1.664 2.109 25.2% TOTAL EXPENSES 42,206 44.757 17.030 18.255 59.236 63.012 6.4% PROGRAM REVENUES Charges fws ces 5,676 5.891 17.467 18,622 23,143 24,513 5.9% Opwating grants and contributions 6,700 6,696 - - 6,700 6,696 -0.1% Capital grants and contrbutians 2.965 528 1.231 1.094 4.196 1.622 -613% Total program revenues 15,341 13.115 18.698 19.716 34.039 32931 J.5% NET REVENUES (EXPENSES) 1269651 131.6421 1.668 1.461 125.1971 130.1811 199% General revenues Sales tales 43,553 45.781 - - 43,553 45,781 5.1% Use fa "s 4.581 5.280 - - 4,581 5280 15.3% Fronchlse and public seMce taxes 1295 1,506 - - 1,285 1,506 172% Hotel taxes 636 667 - 636 667 4.9% Intwgovernmentol 870 752 - - 870 752 -136% Investment Income 35 1,799 44 502 79 2,301 2812.7% Miscellaneous 1294 664 1994 664 -60% TOTAL GENERAL REVENUES 52554 56A49 44 502 52,898 56.951 7.7% Changes before transfers 25,989 24.807 1.712 1.963 27.701 26.770 .3A% Ranters 14,8471 13.4131 4.847 3.413 0,07 CHANGE IN NET POSITION 21,142 21394 6.559 5,376 27,701 26,770 .3.4% NET POSITION, BEGINNING 2(10,464 221.606 34.507 41.066 234971 262.672 11.8% NET POSITION, ENDING $ 221,606 $ 243400 $ 41,066 $ 46.442 $ 262,672 $ 289.442 102% Governmental Fund Balances General Fund -The fund balance increase is primarily due to tax collections and Municipal Court fines 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, a large project to be funded by the Vision Recapture sales tax is in the design phase, resulting in an accumulation of fund balance until the project is 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. MDA Page 5 Management's Discussion and Analysis City of Owasso, Oklahoma June 30, 2023 Capital Improvements Fund —Funding for the Capital Improvements Fund comes from a 1% sales tax restricted for capital expenditures. The decrease in fund balance is primarily due to spending on capital projects. 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 Governmental Funds 2022 General $ 15,682 Vision Recapture Tax 16,150 Half -Penny Sales Tax 9,109 Capital Improvements 12,047 Other Governmental 9,213 Total Governmental Fund (869) Balances 62,201 Major Fund Budgetary Statement Hiahliahts 72,940 10,739 General Fund — The original FY 2022 -23 budget included a 2.1 % increase in tax revenues. Actual tax revenues came in above the original budget by 4.5 %. The sales tax revenue and transfer budgets were revised mid -year to reflect the additional sales tax revenue. Grant and other governmental revenue budgets were also revised as new grants were awarded. Approximately $300,000 in public safety grants (partially awarded after the budget was adopted) are reflected in the Final budget. Court fines and costs were over budget due to an increase in the number of traffic tickets written in the year. The June 30, 2023, General Fund year -end fund balance was 52% of annual revenues, net of transfers to the Owasso Public Works Authority (OPWA). GOVERNMENTAL ACTIVITIES To aid in the understanding of the Statement of Activities on page 2 of the Basic Financial Statements, some additional explanation is given. Of particular interest is the format that is significantly different from a typical Statement of Revenues, Expenditures, and Changes In Fund Balance. You will notice that expenses are listed in the first column with revenues from that particular program reported to the right. The result is a Net (Expense) /Revenue. The reason for this kind of format is to highlight the relative financial burden of each of the functions on the City's taxpayers. It also identifies how much each function draws from the general revenues or if it is self- financing through fees and grants or contributions. All other governmental revenues are reported as general. It is important to note that all taxes are classified as general revenue even if restricted for a specific purpose. MDA Page 6 Change in Fund 2023 Balance $ 20,660 $ 4,978 19,658 3,508 9,630 521 11,178 (869) 11,814 2,601 72,940 10,739 General Fund — The original FY 2022 -23 budget included a 2.1 % increase in tax revenues. Actual tax revenues came in above the original budget by 4.5 %. The sales tax revenue and transfer budgets were revised mid -year to reflect the additional sales tax revenue. Grant and other governmental revenue budgets were also revised as new grants were awarded. Approximately $300,000 in public safety grants (partially awarded after the budget was adopted) are reflected in the Final budget. Court fines and costs were over budget due to an increase in the number of traffic tickets written in the year. The June 30, 2023, General Fund year -end fund balance was 52% of annual revenues, net of transfers to the Owasso Public Works Authority (OPWA). GOVERNMENTAL ACTIVITIES To aid in the understanding of the Statement of Activities on page 2 of the Basic Financial Statements, some additional explanation is given. Of particular interest is the format that is significantly different from a typical Statement of Revenues, Expenditures, and Changes In Fund Balance. You will notice that expenses are listed in the first column with revenues from that particular program reported to the right. The result is a Net (Expense) /Revenue. The reason for this kind of format is to highlight the relative financial burden of each of the functions on the City's taxpayers. It also identifies how much each function draws from the general revenues or if it is self- financing through fees and grants or contributions. All other governmental revenues are reported as general. It is important to note that all taxes are classified as general revenue even if restricted for a specific purpose. MDA Page 6 Management's Discussion and Analysis City of Owasso, Oklahoma June 30, 2023 For the year ended June 30, 2023, the City's governmental activities revenues were funded as follows: Governmental Activities Sources 70.7% ■ Charges for Services 4.3% ❑ Capital Grants ■ Other Taxes Other Revenues Uses of governmental activities in 2022 -23 were as follows: 1.0% 4.7% 2.0% Governmental Activities Uses 91 3% 51.8% GOVERNMENTAL ACTIVITIES -- Continued ■ Operating Grants e Sales and Use Taxes c Intergovernmental ■ General Government ■ Public Safety t I Community Development ■ Recreation & Culture o Economic Development El Public Works For the year ended June 30, 2023, expenses for governmental activities totaled $44.8 million, an increase from prior year of $2.6 million. Governmental transfers to business -type activities totaled $3.4 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 $53.0 million. Grants and other contributions that directly benefited programs funded $7.2 million, and charges for services totaled $5.9 million. MDA Page 7 Management's Discussion and Analysis City of Owasso, Oklahoma June 30, 2023 GOVERNMENTAL ACTIVITIES SOURCES AND USES Charges for Services, Operating and Total Expense Capital Grants of Services Net Revenue (Expense) of Services Water $ 2,895 $ 6,446 $ (3,551) Wastewater 6,051 26,011 (19,960) Sanitation 301 903 (602) Recycle center 990 2,198 (1,208) Economic development 12 461 (449) Golf 2,866 8,738 (5,872) Recycle center TOTAL $ 13,115 $ 44,757 $ (31,642) BUSINESS -TYPE ACTIVITIES Net Revenue (Expense) of Business -Type Activities for the year ended June 30, 2023 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, 2023 compared to a $2.9 million net gain in FY 2021 -22. 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 8 Charges for Services, Net Revenue Capital and Total Expense (Expense) Operating Grants of Services of Services Water $ 9,317 $ 7,370 $ 1,947 Wastewater 6,431 5,889 542 Sanitation 2,688 2,126 562 Recycle center 33 358 (325) Economic development - 403 (403) Golf 1,247 2,109 (862) TOTAL $ 19,716 $ 18,255 $ 1,461 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, 2023 compared to a $2.9 million net gain in FY 2021 -22. 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 8 Management's Discussion and Analysis City of Owasso, Oklahoma June 30, 2023 CAPITAL ASSETS AND DEBT ADMINISTRATION Capital Assefs At June 30, 2023, the City had $274 million invested in capital assets, net of depreciation (See table below). This represents a net increase of $18.7 million or 7.3% over last year. Significant capital assets added this year include construction in progress on the Wastewater Treatment Plant of $7.0 million, improvements to the Sports Park Detention Facility of $4.7 million, and various street projects of $5.4 million, as well as contributed capital of $7.9 million. See Note 3.D to the financial statements for more detail on the City's capital assets and changes therein. Lona -Term Debt At year -end, the City had $91.3 million in long -term liabilities which represents a $8.4 million, or 10.2% increase from the prior year. The largest increase was attributed to the $12.8 million increase in net pension liability. Because no new debt was issued during the fiscal year, normal debt service payments resulted in a $6.2 million decrease in notes payable, net. MDA Page 9 City of Owasso Capital Assets (Net of accumulated depreclaflon /amorlizallon) Governmental Business -Type Activities Activlites Total 2022 2023 M22 2023 mn 2023 Land § 14,748,272 $ 16.640.217 $ 322.619 $ 546.850 $ 15.070,891 § 17.191,067 Buildings 20,260,318 19.183,335 759,696 769,477 21,020.014 19.952,812 Improvements 18.3331203 21p14,529 1.360.289 1.249,056 19,693,492 22263,585 Utilities - - 57,161,268 61,586.203 57.161,268 61,586.203 Machlneq &Equipment 6.179,830 5.942902 3.152,272 2,879.618 9,332,102 8,822720 Inftms ctum 65,225.397 73.785,527 - - 65,225,397 73,785.527 consWCllen in ftO sss 45,314.734 44.247.582 22,206.715 24.571.913 67521.449 4819,495 Right -io-Use Leased Machlnery &Equipment 144.637 647.707 - 230,105 144.637 877,812 Right -fo se Subsc6ption Asset 538.117 601385 598.502 Totals $ 170.206.391 $ 182003.916 1 841962859 $ 91,893.807 $ 255.169.250 $ 273.897,723 See Note 3.D to the financial statements for more detail on the City's capital assets and changes therein. Lona -Term Debt At year -end, the City had $91.3 million in long -term liabilities which represents a $8.4 million, or 10.2% increase from the prior year. The largest increase was attributed to the $12.8 million increase in net pension liability. Because no new debt was issued during the fiscal year, normal debt service payments resulted in a $6.2 million decrease in notes payable, net. MDA Page 9 Management's Discussion and Analysis City of Owasso, Oklahoma June 30, 2023 The City's long -term debt by type of debt is as follows: Leases Subscription liability Accrued absences Total OPEB liability Claims liability Net pension liability Financed purchases Deposits subject to refund Notes payable, net Revenue notes payable Total Governmental Business -Type Percentage Activities Activities Total Change 2022 2023 2022 2023 2022 2023 2022 -2023 $ 174,924 $ 805,509 $ - $ 288,874 - 557,855 - 64,839 2.458,883 2,668.486 191.359 198,925 1.50D,443 7,533,781 328,020 336,825 679,053 668,506 177,147 236,894 10,069,982 22.031,916 - 795,517 - - 514,107 479,661 - - 839,026 875,786 - - 37,025,980 35.315,598 - - 28991.000 24.409.000 TOTALS 14,883285 $ 28,266.053 $ 67,966,639 $ 63,001,919 $ 174,924 $ 1.094,383 525.6% - 622,694 100.0% 2,650,242 2,867.471 8.2% 1,828,463 1,870,606 23% 856,200 905,400 5.7% 10.069,982 22,827,433 126.7% 514,107 479.661 -6.7% 839.026 875.786 4.4% 37.025380 35,315,598 -4.6% 28.891,000 24,409,000 -15.5% $ 82.849,924 $ 91,267,972 10.2% See Note 3.G, 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 2023 -2024 was adopted by the City of Owasso City Council on June 20, 2023 and went into effect on July 1, 2023. The adopted budget conservatively included flat sales and use tax projections. Year -to -date FY 2023 -24 combined sales and use tax collections are 0.3% higher than FY 2022 -23. The FY 2023 -24 budget also included step increases and negotiated increases for all union employees, as well as, cost of living increases and potential merit increases for civilian staff. The budget further includes a $900,000 transfer to the Owasso Public Golf Authority from the General Fund for the purpose of subsidizing operations. While General fund budgetary information is included in this report, persons interested in more in -depth budgetary information can find the full budget document at www.citvofowasso.com /304 /finance. CONTACTING THE CITY'S FINANCIAL MANAGEMENT This financial report is designed to provide our citizens, taxpayers, customers and creditors a general overview of the City's finances and show the City's accountability for the money it receives. If you have questions about this report or need additional financial information, contact the Finance Director's office at 200 S. Main, P. O. Box 180, Owasso, Oklahoma 74055 -0180 or phone (918).376 -1500. MDA Page 10 BASIC FINANCIAL STATEMENTS STATEMENT OF NET POSITION CRY OF OWASSO, OKLAHOMA June 30.200 DEFERRED INFLOWS OF RESOURCES Component - 160.709 Primav Government Deferredlnibws -OPEB Unit 117,c05 644,690 - Deferred Inflows- pension 877.017 EccnoMc 1.061.492 Govemmenfal Business-Type 462,169 Devebpment NEr POSITION Ac Mies Ac11vi8es Total Authority ASSETS 54,523.954 214255,580 - Reshicted tor: Cash and cash equlvolenls $ 44,982796 $ 9,038,249 $ 54,021.045 $ 9.720 Reniricledcash - 2666171 2,666,771 - Inveslmenis 32,585,341 6,547,267 39,132608 - Accouni s receivable net of allowance 1.486.801 2.006.354 3,493,155 - Court tine receivable, net of a0owance 88,250 - 88.250 - Olherreceivables 217,027 41,587 258,614 - Intemalbalances 1379.571) 379,571 - - Due from other gowmments 6,707,225 - 6707,225 - PrepaidHene 32.057 11,142 43,199 - Inventory - 79.535 79,535 - Nelpenslonasset 1.001,578 - 1.001,578 Capital ..is: Land and construction in progress 60 ,891,799 25,118.763 86.010,562 - Othercapitalassets, net of depreciation and amortaotion 121,112117 66.775044 187,887.161 TOTAL ASSETS 268,725.421 112664,283 381.389.703 9.720 DEFERRED OUTFLOWS OF RESOURCES Deterred outlbws -OPEB 94.947 19.920 114,867 - Deferred outflows- pension 11.232.618 1=129 12232746 TOTAL DEFERRED OUTFLOWS OF RESOURCES 11.327.565 1,020,048 12.347.613 LIABILITIES Accounispayable 3.490,429 1.837.062 5,327.491 - Accrued payroiEobiiBes 830.507 174.333 I.W4,840 - Accrued intereslpayable _ 412231 412,231 - Contracts and relainagepayable 499.926 1,150.012 1,649,938 - Unearned revenues 2,361,170 77.798 2439.568 - OtherliablBtles 199,129 126,951 326.080 - Long-term iablifies, including net pension iablBty: Due within one year 2,2D9,375 6,974.534 9.183.909 - Due ln inane than one ,ear 26.056,678 56.027.385 82,084,063 TOTAL LIABILITIES 35.60.814 66.784306 102.428.120 DEFERRED INFLOWS OF RESOURCES Deferred gain on debt refunding - 160.709 160,709 - Deferredlnibws -OPEB 527,685 117,c05 644,690 - Deferred Inflows- pension 877.017 184.475 1.061.492 TOTAL DEFERRED INFLOWS OF RESOURCES 1.404,702 462,169 1.866.891 NEr POSITION Net Investment In capitol assets 180.140.626 54,523.954 214255,580 - Reshicted tor: Pension I,DD1,578 - 1401,578 - Debt service 2,2)6 1.790.985 1.793.191 - General government 164.880 - 164.880 - Pubicsofety 7,613.213 - 7,613.203 - Recreation and culture 58,264 - 58.264 - Econamicdeveloprrent 2,482.339 - 2482,339 9.72] Pubic works 3,009,175 - 3.009.175 Capital projects 30,836.358 - 30.636,358 - Unrestricted 17,691,840 19.873.1031 32,227,737 TOTAL NET POSITION E 243,OOD.469 $ 46.441.836 $ 289.442.305 $ 9.721 See accompanying notes to the basic financial statements. Page 1 rnorewuu, ovlxau p Ip 4e tl Y•n Xrid lun m, i W i CargwM Nel6pewel Pewna ene LlemmrTXel PeJllm YM eOperelFp qiM @v-emk cbwrb GmXW GPMred •wn[nmld mM oewbpmeN CeN�bWlmr CaNAdbn Tulh PMryOpwmn•nl: manld¢IMlkr: m.mwwmmml f 4us1m f 5e)2ev S xlaxNl 3 - c¢m¢.M ual: f[e¢nJC Awbpm.a 3 - s - 3 3 nm gewm�.r. ina.r Ime. m.Ipim FmeMS erd pmle iml.e Imn gelNlwr Flw3vwrrvmnitl Fwr3ronl Feane AWeWwpw -Flema PeYyl/ rpm emma mpmr:.r ae brrrmr cnmw FmlpMl¢ Xe1 peNFMepMinpelpv N•Iwr116Mne elpe Nnum - Aveu9 - SASA95 - 11x5. %I - 1165.551 - )SIp13 $ Q]56Aeel S - 3 n]mmel S - FAlprdeN x4olo.9U ylx]U ;]%N9 - IIS15v1N1 IIV95v.CN1 - Camrnmil/Nwl[pmeM W2161 m]1xB - I011m1 1501.9N1 - geveelbnapMUS 21R,Ux 94N B9ipT - X]OlAxel - I0.4 ' wrmYC bwbpmenl MIAIS 12➢10 - IN9A01 - I[N.4x1 - PpSpwphr IS]10]tll ISHrT3W IOIMGOYFXXM@!!N /CIM16 NPMrri�r:e xYnJbr: wdn x1ro1m wxxw - num - slam 91em - wml.vel•r Ub.xex - laln - sl1.9�9 551.9m - imJl[lisi 1121. 0.a[YVbeenlp W7.9M 61D 11 - TSM11 iA5H911 - RvlgNpywbPmeN - OpY vu, MIHUI rorue6Xxlsm5xmm6s Amr.ma umHm laawm•rvw•erry..,115 m9iml f z3m].we f 195xs s m.ewlm c¢m¢.M ual: f[e¢nJC Awbpm.a 3 - s - 3 3 nm gewm�.r. ina.r Ime. m.Ipim FmeMS erd pmle iml.e Imn gelNlwr Flw3vwrrvmnitl Fwr3ronl Feane AWeWwpw -Flema PeYyl/ rpm emma mpmr:.r ae brrrmr cnmw FmlpMl¢ Xe1 peNFMepMinpelpv N•Iwr116Mne elpe Nnum - Aveu9 - SASA95 - 11x5. %I - 1165.551 - )SIp13 1.190.5A SO!]]1 ]}m]I] xU W[.IU 6N.IU - M11 e961N x.5x1.xi5 3 xutto.rn 3 N.NI]a 3 Hnyx { 9.x9 See accompanying notes to the basic financial statements. Page BALANCE SHEET -- GOVERNMENTAL FUNDS C" OF OWASSO, OKLAHOMA 6une30.2023 See accompanying notes to the basic financial statements. ses Page 3 V6on Hdf-Perv1y Capital Other Total General Recapture T. Sder T. Improvement Govemmenlul Govemmanld FurW Fund Fund Fund fYl%h fuMF ASSETS Cosh and =h equivotenls $ 10,093293 S 123)5,36) $ 5,698,099 S 6.322.068 $ 7,921.481 E 62,411.108 Investment, 7,311538 &966.661 6.128258 4.519.678 5,738.286 3&722420 Prepaid Items 4.000 _ _ - 4000 R.c,.W.dei: Accounh mcehobER, net d aBawance $.605 - - - 1.462196 1,486,801 Duefromolherfuntls - - - 007,204 - 807.284 Due from other govemmenh 5.146,920 181.681 723.330 - 55.288 6,707.225 Court fines recehmb, net of a• awonce 80.250 - _ _ _ 88,250 Olherrecelvables 216.246 2164266 TOTAL ASSETS 22886.859 ff,111.716 10.550,487 11.109.430 15.177250 02.643.332 LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES LIABILITIES Ac counts payable 3382262 2.021.054 398,310 474.250 137,893 3.389,769 Accrued assroE 11ab111tiel 248.276 - 522.521 - 44295 815.097 Due tO Other funds 1.430.176 - - - 86,973 1.517.149 Retdnaae payable - 460,127 - 56.199 - 499,926 Unemedrevenue 32,927 - - - 2324;634 2357,561 OlhesllabSilles 74.129 743" TOTAL LIABILITIES 2143.769 2.44H.181 9M.83) 531.019 2.593.795 8.653.631 DEFERRED INFLOWS OF RESOURCES Unava0eble revenue- chnpes for rervlceF 80.165 76,258 891023 FUNDBALANCES Nmspenssoble: Repaid Beno 4.0430 6.000 ResMeted W. Gereral govemmenl - - - 164.880 164.1180 Pubk safety 42,697 - 6532375 - 937.631 7.613.203 Recreation anDI W. 58264 - - - 58,264 Ecorwmk: development SO - - - 2.402289 2.462.339 PUNC works - - 2,996,775 - 12400 3809.115 Capltd gajecb - 19:651.536 - 11,177,981 843 30336358 Debt service - - - - 2.206 2206 CommBted: Pub safety - - - - 2@46,633 2846,633 St.firsrman.,sment - - - - 4.611.675 4,611.675 Capital Projects - - - - 755,640 755.640 Anlgned: Gererol DOVemment 152930 - - - - 152.930 PubFC sdeN 193.308 - - - - 193,308 Recreation and culture 59."6 - - - - 59.646 Capital Projects 2,000,000 - - - - 2000800 UnanOned 18.149:621 16.149.621 TOTAL FUND BALANCES 20.660.316 19.657.534 9.629.607 11.177.981 11.814.197 8939.678 TOTAL UABIUTIES, DEFERRED INFLOWS OF RESOURCES. AND FUND BALANCES $ 22884.850 $ 22.121.715 S 10.550,181 S 11.709830 S 15.171260 S 82.443.332 See accompanying notes to the basic financial statements. ses Page 3 RECONCILIATION OF GOVERNMENTAL FUNDS BALANCES HEET TO THE STATEMENT OF NET POSITION CITY OF OWASSO, OKLAHOMA June 30, 2023 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position Total fund balances - governmental funds 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 $107.793,255 and net of capital assets of Internal Service Funds of $186,353 Certain assets are not available to pay for current fund liabilities and, therefore, are deferred in the funds: Accounts receivable Net pension asset Internal service funds are used by management to charge the costs of certain activities, such as insurance, to individual funds. The assets and liabilities of the internal service fund are Included in governmental activities in the Statement of Net Position. Net position of the Internal Service Fund Internal service fund interfund balance resulting from net revenues reported in business-type activities 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 SBITA payable, net of Internal Service Funds of $7,832 Other liability Accrued compensated absences, net of Internal Service Funds of $13,331 Total OPEB liability and related deferred inflows of resources and deferred outflows of resources, net of Internal Service Funds of $21,518 Net pension liability and related deferred inflows of resources and deferred outflows of resources, net of Internal Service Funds of $792 Net position of governmental activities $ 72,939,678 181,817,563 850,023 1,001,578 5,111,178 (961,755) (805,509) (550,023) (125,000) (2,655,155) (1,945,001) (11,677,108) $ 243,000,469 See accompanying notes to the basic financial statements. Page 4 STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES -- GOVERNMENTAL FUNDS CITY OF OWASSO, OKWHOMA For 81e Rscal year ended June 30, 2023 FUND BALANCE- END OF YEAR $ 20.660316 $ 19,657.534 $ 9,629.650 $ 11677981 $ 11.814.197 $ 72,939.678 See accompanying notes to the basic financial statements. Page 5 VW,n Half -Penny Capital Olher Total Geneml Recapture Tax Sales TOx Improvement Govemmenfol Governmental Fund Fund Fund Fund Funds Funds REVENUES Taxes $ 40;493,694 $ 6.224.571 $ 5,658,661 $ - $ 1.201.924 $ 53.578,850 Intergovernmental 3,528,719 - 89.113 - 3.917.266 7.535,098 Charges fcx,wmces 784,533 - - 5,770 4,157,431 4.947.734 Ft. and fosfeitums 417,975 _ - _ 227 418,195 Ucenses and perrrits 331.822 - - - 68,373 4DO,195 Investmenlincome 370,083 452,935 245.671 334,258 255.211 1.658,158 Mlscellaneous 152.496 49.722 (8,792) 164.196 357:622 TOTAL REVENUES 46.079.322 6.677.506 6.043.167 331.236 9.764.621 68.895,852 EXPENDITURES Cuaent: General govemment 4,844.958 - - 5.875 4,950.833 Public safety 16.552,939 - 3,844,686 - 3,268,030 23,665,655 Community development 908,776 - - - - 908.776 Recreation and cullum 1,556.627 _ - - - 1.556.627 Economic development 157.728 - - - 303,542 461.270 Public works 1,552.893 - 1,551.654 - 532,763 3,637.310 Capitol outlay 1.556.182 3.170.271 1.428,812 10749104 1775.603 20.680.072 TOTALEXPENDITURE$ 27.130.103 3.170.271 6.825.152 10.749204 7.885913 55.760.543 Revenues mmw(under) expendifures 18.949.219 3.507,235 (781.985) (10.417.9681 1.878.806 13.135.309 OTHER FINANCING SOURCES (USES) Lwow (as lessee) 562.968 - 168,547 - - 731,515 SODA 285.389 - - - 285.399 Transfers in 22367,645 - 1,134.515 9.549.0" 1,259,084 34.310,288 Transfers out (37187.3421 (536.3071 (37.723.6491 TOTAL OTHER FINANCING SOURCES (USES) 113.971,3401 1.303.062 9.549.044 722.777 f2396.4571 NET CHANGE IN FUND BALANCES 4.977979 1507.235 521,077 (868.924) 2,601,585 10.738952 FUND BALANCE- BEGINNING OF YEAR 15.682.437 16.150.299 9.108.573 12.046.905 9.212,612 62.200926 FUND BALANCE- END OF YEAR $ 20.660316 $ 19,657.534 $ 9,629.650 $ 11677981 $ 11.814.197 $ 72,939.678 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, 2023 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 $ 10,738,852 Amounts reported for govemmental activities in the Statement of Activities are different because: Governmental funds report capital outlays as expenditures, while governmental activities report deprecialion and amortization expense to allocate those expenditures over the life of the assets: Capital asset purchases capitalized 20,715,078 Depreciation and amortization expense (8,772467) Loss on disposal of capital assets 1586,5631 11;356,048 Revenues in the Statement of Activities that do not provide current financial resources are not reported as revenues In the funds: Contributed assets 528,186 Change in deferred inflow related to court bonds 55,130 Change in deferred inflow related to ambulance billings 177.580 76896 Debt proceeds provide current financial resources to governmental funds, but issuing debt increases long -tern liabilities in the Statement of Nei Position. Leases issued (731,515) SBITAs Issued (285 389) 1,016,9D4 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 and SBITAs (248,367) Otherliability (125,000) Accrued compensated absences, net of Internal Service Funds of $3,987 (213,590) Total other post- employment benefit lability, net of Internal Service Funds of $433 (38,406) Pension (revenues) expenses (181,837) (007,2001 Internal service funds are used by management to charge the costs of certain activities, such as insurance, to individual funds. The assets and liabilities of the internal service fund is included in governmental activities in the Statement of Net Position. Total change in net position of the internal service fund 491,187 Net revenues of internal service funds reported In business -type activities - 1128.5171 362,670 Change in net position of governmental activities $ 21,394,362 See accompanying notes to the basic financial statements. Page 6 STATEMENT OF NO POSIIION -- PROPRIETARY FUNDS CITY OF OWASSO. OKLAHOMA June 30, 2023 Enfiopme Funds Owouo Owavo Inbrnal Public Wmb Public Gall SerAce AYM,,W AulhodN Total funds ASSETS CURREM ASSETS Cmh and in aaulvalenh S 7361,287 S 362618 S 8.126.935 $ 3.63.002 Invesimenh 5.179,536 10759 S,119.115 2523,073 Resti cmh and cash eaWVabnls 1,91669 - Accounhmcehgmle, net ofallowance 206.351 - 2,006.391 - OMermcelvables 2861 38.116 41.310 11060 Due fmm M. mndx 1,517,149 1,517.149 Prepaid Items - 1,20 1.20 36.00 Invenbry 9.535 71.MS TOTAL CURRENT ASSETS 15.69.810 1,0119,400 19, 3,256 6.045.135 NONCURRENTASSETS Restricted m-I, Cash and cash eauwalanh 603,113 683113 - Landand conshuctioninproorav 24.99244 169.519 25,115,763 Ober capital aveh, net of depseciafion 64AWAS3 2.391.491 66.775.044 INN" TOTAL NONCURRENT ASSETS 90.019.910 2.59.010 92576.90 1116.353 TOTAL ASSETS 103.573.758 3.646.418 112.220.176 6.231.185 DEFERRED OUTFLOWS OF RESOURCES Deferred ..lbws -OPEB 15.916 3399 19,615 1.165 Uelerrea aunbws - mm,n 565.668 171.294 976.962 8ILSPS TOTAL DEFERRED OUTFLOWS 821.504 174.993 996.97 119.761 LKSIUIES AND NET POSITION CURRENT WOIMIFS Accounh payable 1025539 126.053 1.801.392 136,330 Accrued per,od 11a61Iifin 124377 4&195 168,872 M071 Inlesest payable 412231 - 412.231 - ContrachwdreMnogepayable 1,150.012 - I,ISD012 - Uneamedm,mnua - 76,306 76,316 5.701 Due to offer Funds 807,281 - 07.281 - Oberllab8lHes 93.551 33.40 126.951 - Current porfea of noncurrent IlabBiliev Financed purchases - 102.991 102991 - Deposibsublecltorefund 192.673 - 192,03 - Holespoyabla 1]33,451 - 1,733,458 - m.nue note payobIe 433T.000 - 4,581,000 SBDAoblpaflon 21.933 SAW 25.393 6b10 Leaseab110atbn 71,536 - 71336 - Incuned but ml reported claMS 651.356 Accrued corapern.mal absences 71.994 21.501 93,495 6366 TOTALCURREMLIANMIES 10.930388 413.005 11313594 01.142 NONCURRENT LIABILITIES Peened purchases - 376,670 376.90 DepesMsubjrrct to refund 61310 - 633113 Notes mr able. net 33,582110 - 33,552140 - Revenuenatepayable 19.82500 19,828,00 - EFTAabII0a6an 30.529 6.141 36.90 3.99D Lease o1,110ofion 217.335 - 217,330 - PemlonllabRity 636.666 141.418 776.04 66.629 Total OPH lability 270.0% 0.981 331.09 M114 hcumm but ..Imported claims 247,044 Accrued campemoted absences 111.185 21.245 T05.130 7A65 TOTAL NONCURRENT UABILRIFS 55.329.029 609.455 55.9311.184 346.842 TOTAL LIABIMIES 66359.617 1.022A61 67.282070 IAW.901 DEFERRED INFLOWS OF RESOURCES Deferredyaln an debUekirrtlln8 10 ,709 - 160.709 - Deferred Inflow -OPEB 91,518 0.313 111.861 0.194 Deterred lnflaw- pendon 152.176 26.1118 19.024 20.885 TOTAL DEFERRED INFLOWS 402133 47A61 69.594 29.09 NO POSITION Net investment In co,11.1 assets $2,158,982 2067 ,7111 56526,730 115.)45 RmMcbdm,: Deb6seMca 1,790.985 1,790,989 Unnuff.ted IdeficHl 111,521.951 101.041 110.07.6311 6935133 TOTAL NET POSITION 3 4298,292 3 2 ,751.789 S 4S4W.01 i 5.111.175 Some mnounh reported forbushen -type aclMHedn Me Slammentof Nat Position are dRfemnlbeaame certain Internal xen ice tend balances we Included wile buslneefte cafes and reported on Mankind balances 961,755 total business-type activilka net paifian per Gooanrnmr -Wlde financial stalemenls See accompanying notes to the basic financial statements. Page 7 STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION -- PROPRIETARY FUNDS CITY OF OWASSO, OKLAHOMA Far the weal year ended June 30, 2023 OPERATING REVENUES Charges far services: Water Wastewater Refuse Recycle PenaPoes/late charges Golf Internal service charges for services Other OPERATING EXPENSES Ull billing Administration Water Wastsswatertreatment plant Wastewater collection Refusecollectlons Recycle center TIF/ economic development Golf Claims expense CRY garage Depreciation and amortization Other TOTAL OPERATING REVENUES Owasso Owasso Intemal Pubic Works Pubic Golf Service Authority Authority Total Funds $ 8,125,830 $ - $ 8,125,830 $ - 6,288,762 - 6,288.762 - 2.666882 - 2,666,882 - 62A11 - 62.011 - 231.874 - 231.874 - - 1,246,750 1,246.750 - - - - 8803,283 258 17.375.359 1.246,750 18,622,109 8.803,541 530,432 - 530,432 - 1.004,105 - 1,004,105 1,701,346 4,749,976 - 4,749,976 - 1,649.979 - 1,649,979 - 983.473 - 983.473 - 1.467.568 - 1,467568 - 265,858 - 265,858 - 403305 - 403,305 - - 1.828,668 1,828.668 - - - - 5,953,230 - - - 763,966 3,377,501 295,554 3,673,055 33647 61.377 61,377 TOTAL OPERATING EXPENSES 14,193,574 2,124.222 16.617.796 8.452.189 OPERATING INCOME tLOSS) (EXPENSES) Investmemlhcome Interestexpeme TOTAL NONOPERATING REVENUES (EXPENSES) Net Income (loss( before contributions and transfers Capital contributions Transfers In - required Transfers in -other Transfers out NET POSITION- BEGINNING NET POSITION- ENDING CHANGE IN NET POSITION 2.881.785 1877,4721 2,004,313 351.352 482,281 19.956 502,237 140,426 11.766,1791 (3021 (1,766.4811 15911 (1.283.8981 19.654 11.264.2441 139.835 1,597,887 (657,818) 740,069 491,187 1,094,251 - 1,094.251 - 34,290AW - 34,290,050 - - 1,040,000 1,040,000 - 131:916.6891 131,916,6691 5,065,499 182.182 5.247,681 491,187 37.662793 2.569.607 40.232.400 4,619,991 $ 42,728.292 $ 2,751,789 $ 45,480,081 $ 5,111,178 Change in net position perabove 5,247,681 Some amounts reported for business-type activities in the Statement of Activilles are different because the net revenue of certain internal service funds Is reported with business -type activities 128,517 Change in Business-Type Activities Net Position per Govemment -Wide Financial Statements $ 5,376,190 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, 2023 CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers Payments to suppliers Payments to employees Receipts of customer meter deposits Customer meter deposits refunded or applied Other receipts (payments) NET CASH FROM OPERATING ACTIVITIES CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Transfers from other funds Transfers to other funds NET CASH FROM NONCAPITAL FINANCING ACTIVITIES CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition and construction of capital assets Payments on financed purchases Payments on 5BITA obligation Payments on lease obligation Payments on capital debt NET CASH FROM 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 Fntemrise Funds Owasso Owasso Internal Public Works Public Goff Service Authority Authority Total Funds b 17,193,512 $ 1,250,623 $ 18,444,135 $ 8,843,396 (8,211,228) (652,645) (8,863,8731 17,862,4131 (3,931,709) (1,168,076) (5.099,785) (474,6831 208,589 - 208.589 - (171.829) - (171,829) - f381.8491 1381,8491 9,881 4,705,486 1570,0981 4,135.388 516.181 34,290,050 1,040,000 35,330.050 - f31,916,6891 131.916,6891 2,373.361 1,040,000 3,413,361 (8,987,600) (69,1001 (9,056,700) 114,649 - (94,188) (94,188) - (21,1391 (3,302) (24,4411 16,937, (17,933) - (17.9331 - f6,125,027) (6,125,0271 115.151.6991 1166,5901 115,318.2891 121,5861 (4,337,197) (238,990) 14,576.1871 (1,124,100) 482,281 19,654 501.935 140,426 13,854.9161 1219,3361 14.074,2521 (983,6741 (11,927.768) 83,976 (11,843,792) (489,0791 22.158.826 478,672 22,637,498 3.972.081 E 10,231,058 E 562,648 E 10,793,706 $ 3,483.002 (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, 2023 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: Depreciation and amortization eusense Change in assets, deferred outflows of resources, liabilities, and deferred inflows of resources: Accounts receivable, net Other receivables Inventory Due from other funds Accounts payable Accrued payroll liabilities Unearned revenue Due to other funds Other liabilities Deposits subject to refund Pension OPEB Incurred but not reported claims Accrued compensated absences NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES NONCASH ACTIVITIES Contributed capital assets RECONCILIATION OF CASH AND CASH EQUIVALENTS TO THE STATEMENT OF NET POSITION Cash and cash equivalents- current Cash and cash equivalents - restricted current Cash and cash equivalents- restricted noncurrent TOTAL CASH AND CASH EQUIVALENTS Enterprise Funds (877,472) $ Owasso Owasso Internal Public Works Public Golf Service Authority Authority Total Funds $ 2.881.785 $ (877,472) $ 2,004,313 $ 351,352 3,377,501 295,554 3,673,055 33,647 (116.971) - (116,971) 37,295 (2,864) (2,102) (4,966) 2.818 - (30,035) (30,035) - (34,264) - (34,264) 9.623 (1,071,389) 1,402 (1,069,987) 18,485 20,508 12,333 32,841 8.1 B5 - 5,975 5,975 5,507 (348,220) - 1348,2201 - 173,890) 7,165 (66,725) - 36,760 - 36,760 - 30,871 6,748 37,619 3,570 6,806 1,621 8,427 486 - - - 49,200 11,1471 8,713 7.566 13,9871 $ 4,705,486 $ (570,0981 $ 4,135,388 $ 516,181 $ 1.094.251 $ $ 1,094,251 E $ 7,564,287 $ 562,648 $ 8,126,935 $ 3,483,002 1,983,658 - 1,983,658 - 683,113 683,113 $ 10.231.058 $ 562.648 $ 10,793,706 E 3,483.002 (Concluded) See accompanying notes to the basic financial statements. IN Page 10 NOTES TO BASIC FINAN STATEM NOTES TO BASIC FINANCIAL STATEMENTS CITY OF OWASSO, OKLAHOMA YEAR ENDED JUNE 30, 2023 TABLE OF CONTENTS Nate 1 - Summary of Significant Accounting Policies A. Financial Reporting Entity B. Basis of Presentation C. Measurement Focus and Basis of Accounting D. Assets, Liabilities, Deferred Outflows /Inflows of Resources, and Net Position /Fund Balance E. Internal and Interfund Balances and Activities F. Revenues, Expenditures, and Expenses G. Use of Estimates H. Pensions and Other Post - Employment Benefits Note 2 - Stewardship, Compliance, and Accountability A. Deposits and Investments Laws and Regulations B. Debt Restrictions and Covenants C. Fund Equity / Net Position Restrictions Note 3 - Detail Notes - Transaction Classes / Accounts A. Deposit and Investment Risks B. Accounts Receivable C. Restricted Assets D. Capital Assets E. Leases F. Subscription -Based IT Arrangements G. Long -Term Debt H. 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, 2023 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, 2023 The component units that are blended into the primary governments' fund categories are presented below: Component Unit Brief Description /Inclusion Criteria Owasso Public Created January 10, 1973, to finance, develop, and Works Authority operate the water, wastewater, and refuse disposal facilities. The current City Council serves as entire governing body (Trustees) of the OPWA, and 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, Golf Authority maintain, equip, operate, and conduct a golf course and incidental facilities. The current City Council serves as entire governing body (Trustees) of OPGA, and management of the City has operational responsibility for the OPGA. Any issuances of debt would require a three - quarters approval of the City Council. Included Funds OPWA Enterprise Fund OPGA Enterprise Fund 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 Development the City. The OEDA governing body is comprised of Authority seven members: one council member of the (OEDA) Beneficiary, one 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, 2023 1.B--Basis of Presentation Government -Wide Financial Statements: The statement of net position and statement of activities display information about the City as a whole. They include all funds of the reporting entity except for fiduciary funds. The statements distinguish between governmental and business -type activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other non - exchange revenues. Business -type activities are financed in whole or in part by fees charged to external parties for goods or services. Fund Financial Statements: Fund financial statements of the reporting entity are organized into funds, each of which is considered to be a separate accounting entity. Each fund is accounted for by providing a separate set of self- balancing accounts which constitute its assets, liabilities, deferred inflows and outflows of resources, fund equity, revenues, and expenditures /expenses. Funds are organized into two major categories: governmental and proprietary. The City presently has no fiduciary funds. An emphasis is placed on major funds within the governmental and proprietary categories. A fund is considered major if it is the primary operating fund of the City or meets the following criteria: a) Total assets, liabilities, revenues, or expenditures /expenses of that individual governmental or enterprise fund are at least 10 percent of the corresponding total for all funds of that category or type, and b) Total assets, liabilities, revenues, or expenditures /expenses of that individual governmental or enterprise fund are at least 5 percent of the corresponding total for all governmental and enterprise funds combined. c) A fund that does not meet the criteria of (a) and (b) but which management has determined is of such significance to be reported as a major fund. The funds of the financial reporting entity are described below: GOVERNMENTAL FUNDS: General Fund: The General Fund is the primary operating fund of the City and is always classified as a major fund. It is used to account for all activities except those legally or administratively required to be accounted for in other funds. Special Revenue Funds: Special Revenue Funds are used to account for the proceeds of specific revenue sources that are legally or administratively restricted or committed to expenditure for certain purposes. The reporting entity includes the following special revenue funds: Maior Fund Brief Description Half -Penny Sales Tax Fund Accounts for half -penny sales tax revenue. Funds are restricted to operational or capital expenditures for Police, Fire, and Streets functions. Fire and Police each receive 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, 2023 Nonmajor 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 2% hotel tax designated to fund the Owasso Strong Neighborhoods Initiative. Stormwater Management Accounts for revenues derived from the storm water system Fund 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. Opioid Settlement Fund Accounts for funds received from a settlement for pharmaceutical opioids which have harmed the City of Owasso and its citizens. FN Page 5 NOTES TO BASIC FINANCIAL STATEMENTS — Continued CITY OF OWASSO, OKLAHOMA YEAR ENDED JUNE 30, 2023 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 aft er 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. Nonmaior 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 27o sales tax on businesses locating within the TIF district after December 20, 2016, and property taxes related to increases in the property tax base within the TIF District subsequent to the December 20, 2016, creation date. Funds are restricted to capital expenditures within the Redbud District. Park Development Fund Accounts for revenue received from building permit charges required by ordinance as in- lieu -of payments in subdivisions that do not donate park property. Funds are used for improvements to and development of the park system. Capital Project Grant Fund Accounts for grant revenue from state and federal grants. Funds are used for capital improvements as specified in grant contracts. 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, 2023 Proprietary Funds: Proprietary funds include both enterprise funds and internal service funds. Enterprise funds are used to account for business -like activities provided to the general public. Internal service funds are used primarily to account for governmental activities provided and charged to other funds or entities within the reporting entity. Proprietary fund operating revenues and expenses, such as charges for services and costs, and depreciation on capital assets, result from exchange transactions associated with the principal activity of the fund. Non - operating revenues and expenses of the proprietary funds include such items as investment earnings, interest expense and subsidies. The reporting entity includes the following enterprise funds and internal service funds: Enterprise Funds: Funds Owasso Public Works Authority Owasso Public Golf Authority Internal Service Funds: Brief Description 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 Description Vehicle Maintenance Fund Accounts for the financing of goods and services provided by one department to other departments of the City. The vehicle maintenance department 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 ail 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, 2023 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: 1. 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, 2023 All proprietary funds utilize the accrual basis of accounting. Under the accrual basis of accounting, revenues are recognized when earned, and expenses are recorded when the liability is incurred or economic asset is used. 1.D-- Assets, Liabilities, Deferred Oufflows /Inflows of Resources, and Net Position /Fund Balance Cash and Cash Equivalents: Cash and cash equivalents include all demand, savings accounts, and certificates of deposit or short -term investments with an original maturity of three months or less at the date of purchase. Restricted Cash: Includes revenue bond, customer deposits and promissory note trust account investments in open -ended mutual fund shares reported at the funds' amortized cost. Investments: Investments include certificates of deposit or short-term investments with an original maturity of three months to one year at the date of purchase. Investment income reflected in the proprietary statements is considered non - operating income. Receivables: Material receivables in governmental funds include revenue accruals such as sales tax, 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 $813,521 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. 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. FN Page 9 NOTES TO BASIC FINANCIAL STATEMENTS - Continued CITY OF OWASSO, OKLAHOMA YEAR ENDED JUNE 30, 2023 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 and subscription assets, the measurement of which is discussed below. 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 statement of net position. 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 lease 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 life. 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 FN Page 10 NOTES TO BASIC FINANCIAL STATEMENTS - Continued CITY OF OWASSO, OKLAHOMA YEAR ENDED JUNE 30, 2023 incremental borrowing rate as the discount rate for leases. The lease term includes the noncancellable 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 leases and Will remeasure the lease assets and liabilities if certain changes occur that are expected to significantly affect the amount of the lease liabilities. Lease assets are reported with other capital assets and lease liabilities are reported with long -term debt on the statement of net position. Subscription -Based Information Technology Arrangements (SBITAs): The City has entered into various SBITAs. The City recognizes a subscription liability and an intangible right -to -use subscription asset (subscription) in the statement of net position. The City recognizes subscription liabilities with an initial, individual value of $5,000 or more. At the commencement of a subscription, the City initially measures the subscription liability at the present value of subscription payments expected to be made during the subscription term. Subsequently, the subscription liability is reduced by the principal portion of subscription payments made. The subscription asset is initially measured as the initial amount of the subscription liability, adjusted for subscription payments made before the subscription commencement date, plus capitalizable implementation costs, less any incentives received from the SBITA vendor at or before the commencement of the subscription term. Subsequently, the subscription asset is amortized on a straight -line basis over the subscription term. Key estimates and judgments related to SBITAs include how the City determines (1) the discount rate it uses to discount the expected subscription payments to present value, (2) subscription term, and (3) subscription payments. The City uses the interest rate charged by the vendor as the discount rate. When the interest rate charged by the vendor is not provided, the City generally uses its estimated Incremental borrowing rate as the discount rate for SBITAs. The subscription term includes the noncancellable period of the subscription. Subscription payments included in the measurement of the subscription liability are composed of fixed payments and certain variable and other payments that are reasonably certain of being required. The City monitors changes in circumstances that would require a remeasurement of its SBITAs and Will remeasure the subscription assets and liabilities if certain changes occur that are expected to significantly affect the amount of the subscription liabilities. Subscription assets are reported with other capital assets, and subscription liabilities are reported with long -term debt on the statement of net position. FN Page 11 NOTES TO BASIC FINANCIAL STATEMENTS — Continued CITY OF OWASSO, OKLAHOMA YEAR ENDED JUNE 30, 2023 Long -Term Debt: Accounting treatment of long -term liabilities varies depending upon the source of repayment, the measurement focus appried 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 same in the fund statements as it is in the government -wide statements. Compensated Absences: After a six -month probationary period, all regular full -time and qualified part-time employees are granted vacation benefits in amounts from 60 hours to 190 hours per year depending upon employment classification and tenure with the City, with a maximum accumulation of 290 hours. After a twelve -month probationary period, police officers are granted vacation benefits in amounts from 96 hours to 216 hours per year depending upon tenure with the City, With a maximum accumulation of 500 hours. Firefighters accrue 144 vacation hours a year during the first year of employment; after a twelve -month probationary period, firefighters are granted vacation benefits in amounts from 264 hours to 408 hours per year depending upon tenure with the City, with a maximum accumulation of 528 hours. All vacation benefits accumulate pro rata on a bi- weekly basis. Accumulated vacation leave vests, and the City is obligated to make payment even if the employee terminates. 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 FN Page 12 NOTES TO BASIC FINANCIAL STATEMENTS — Continued CITY OF OWASSO, OKLAHOMA YEAR ENDED JUNE 30, 2023 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, as such, will not be recognized as an outflow of resources (expense /expenditure) until then. Both the entity -wide and proprietary fund statements of net position include the following items that are reported as deferred outflows of resources: deferred charges on the pension liability and deferred charges on OPEB liability. In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net 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 its reacquisition price. This amount is deferred and amortized over the shorter of the rife of the refunded or refunding debt. Deferred oufflow /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 FN Page 13 NOTES TO BASIC FINANCIAL STATEMENTS — Continued CITY OF OWASSO, OKLAHOMA YEAR ENDED JUNE 30, 2023 and deferred inflows of resources that are attributable to the acquisition, construction, or improvement of those assets or related debt are also included in this component of net position. The classification of a borrowing as capital - related is made separately for each column reported on the government -wide statement of net position, so debt might be classified as capital - related for one column but not for another. A portion of the City's enterprise fund debt is being used for the acquisition of capital assets in governmental activities. As a result, the capital assets and the related borrowings are reported in different activity columns, but within the same primary government total column. b) Restricted net position -Consists of resources with constraints placed on their use either by 1) external groups such as creditors, grantors, contributors, or laws or regulations of other governments or 2) law through constitutional provisions or enabling legislation. c) Unrestricted net position - All other resources that do not meet the definition of "restricted" or "net investment in capital assets." It is the City's policy first to use restricted resources prior to the use of unrestricted resources when an expense is incurred for purposes for which both restricted and unrestricted resources are available. Additionally, the City first uses committed, then assigned, and lastly, unassigned amounts of unrestricted fund balance when expenditures are made. These categories are discussed further below. Governmental Fund Financial Statements., Governmental fund equity is classified as fund balance. Fund balances of the government funds are classified as follows: a) Restricted - Includes fund balance amounts that are constrained for specific purposes which are externally imposed by providers, such as creditors or amounts constrained due to constitutional provisions or enabling legislation. b) Committed - Includes fund balance amounts that are constrained for specific purposes that are internally imposed by the City through formal action of the highest level of decision- making authority (ordinance). Only Council action can remove the commitment. c) Assianed - 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. FN Page 14 NOTES TO BASIC FINANCIAL STATEMENTS - Continued CITY OF OWASSO, OKLAHOMA YEAR ENDED JUNE 30, 2023 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: interf und activity and balances, if any, are eliminated or reclassified in the government -wide financial statements as follows: 1. Internal balances - amounts reported in the fund financial statements as interfund receivables and payables are eliminated in the governmental and business -type activities columns of the statement of net position, except for the net residual amounts due between governmental and business -type activities, which are reported as internal balances. 2. Internal activities - amounts reported as interfund transfers in the fund financial statements are eliminated in the government -wide statement of activities except for the net amount of transfers between governmental and business -type activities, which are reported as transfers - internal activities. The effect of interfund services between funds is not eliminated in the statement of activities. 3. Primary government and component unit activity and balances - resource flows between the primary government (the City, OPWA, and OPGA) and the discretely - presented component unit (the Owasso Economic Development Authority) are reported as if they were external transactions. Fund Financial Statements: Interfund activity, if any, within and among the governmental, proprietary, and fiduciary categories is reported as follows in the fund financial statements: 1. Interfund loans - amounts provided with a requirement for repayment are reported as interfund receivables and payables. Interfund loans with repayment periods longer than one year are considered long term advances while the current portion of interfund payables are repayable within one year. 2. Interfund services - sales or purchases of goods and services between funds are reported as revenues and expenditures /expenses. 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. FN Page 15 NOTES TO BASIC FINANCIAL STATEMENTS - Continued CITY OF OWASSO, OKLAHOMA YEAR ENDED JUNE 30, 2023 1. F-- Revenues, Expenditures, and Expenses Sales Tax: 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 tax 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. 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 did not levy property taxes. 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 2023, this is not a significant source of revenue for the City. Program Revenues: In the statement of activities, revenues that are derived directly from each activity or from parties outside the City's taxpayers are reported as program revenues. The City has the following program revenues in each activity: General government Cemetery lot sales and internments, zoning fees, other fees, licenses, and permits FN Page 16 NOTES TO BASIC FINANCIAL STATEMENTS - Continued CITY OF OWASSO, OKLAHOMA YEAR ENDED JUNE 30, 2023 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 /Exoenses: 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. I.G- -Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts and disclosures; accordingly, actual results could differ from those estimates. 1.H -- Pensions and Other Post - Employment Benefits For purposes of measuring the net pension asset, net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the Oklahoma Firefighters Pension & Retirement System ( OFPRS), Oklahoma Police Pension & Retirement System ( OPPRS), and Oklahoma Municipal Retirement Fund (OkMRF), and additions to /deductions from OFPRS, OPPRS and OkMRF's fiduciary net position have been determined on the same basis as they are reported by OFPRS, OPPRS and OkMRF. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments held by these funds are reported at fair value. FN Page 17 NOTES TO BASIC FINANCIAL STATEMENTS - Continued CITY OF OWASSO, OKLAHOMA YEAR ENDED JUNE 30; 2023 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, 2023. Investments of the City are limited by state law to the following: a) Direct obligations of the U.S. Government, its agencies, and instrumentalities to which the full faith and credit of the U.S. Government is pledged, or obligations to the payment of which the full faith and credit of the State of Oklahoma is pledged. Agency securities are not explicitly guaranteed by the U.S. Government, however, there is an implicit guarantee on these securities. b) Certificates of deposit or savings accounts that are either insured or secured with acceptable collateral with in -state financial institutions, and fully insured certificates of deposit or savings accounts in out -of -state financial institutions. c) With certain limitations, negotiable certificates of deposit, prime bankers' acceptances, prime commercial paper, and repurchase agreements with certain limitations. d) County, municipal, or school district tax supported debt obligations, bond or revenue anticipation notes, money judgments, or bond or revenue anticipation notes of public trusts whose beneficiary is a county, municipality, or school district. FN Page 18 NOTES TO BASIC FINANCIAL STATEMENTS — Continued CITY OF OWASSO, OKLAHOMA YEAR ENDED JUNE 30, 2023 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. 2.8- -Debt Restrictions and Covenants General Long -Term Debt: As required by the Oklahoma State Constitution, the City, (excluding Public Trusts) may not incur any indebtedness that would require payment from resources beyond the current fiscal year revenue, without first obtaining voter approval. For the year ended June 30, 2023, 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, 2023. a. Revenue Bond Coverage: 1. 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 2009B, 2009C, 2011, 2013 SRF OWRB Note, and 2019 OWRB Note. Net revenues available, including sales tax transferred, amounted to $41,071,822. The annual principal and interest on the bonds and any subordinate debt amounted to $7,972,512. Actual coverage was 359 %. FN Page 19 NOTES TO BASIC FINANCIAL STATEMENTS — Continued CITY OF OWASSO, OKLAHOMA YEAR ENDED JUNE 30, 2023 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, 2023, 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, 2023: Deposits Demand deposits Petty cash and change funds Investments U.S. Treasury obligations Certificates of deposit Money market mutual funds Investment Maturities Carrying Credit (in Years) Value Rating Less than 1 1 -5 $ 54,880,437 16,394 37,098,466 2,034,142 1,790,985 Total Cash and Cash Equivalents and investments $ 95,820.424 Reconciliation to Statement of Net Position Cash and cash equivalents $ 54,021,045 Restricted cash 2,666,771 Investments 39,132,608 95,820,424 n/a n/a n/a n/a n/a n/a AA+ $ 37,098,466 $ n/a 2,034,142 AAAm 1,790,985 $ 40,923,593 $ 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 20 NOTES TO BASIC FINANCIAL STATEMENTS - Continued CITY OF OWASSO, OKLAHOMA YEAR ENDED JUNE 30, 2023 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, 2023, 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, 2023, 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 Rafe 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, 2023, 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 I 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, 2023, all of the City's investments are valued using Level 2 inputs. The value is determined using quoted prices for similar assets or liabilities in active markets. Quoted Prices Significant Significant In Active Markets Other Observable Unobservable for Identical Assets Inputs Inputs Total (Level 1) (Level 2) (Level 3) Fair Value U.S. Treasury Obligations $ $ 37,098,466 $ $ 37,098,466 Certificates of Deposit 2,034,142 2,034,142 $ $ 39,132,608 $ $ 39,132,608 FN Page 21 NOTES TO BASIC FINANCIAL STATEMENTS - Continued CITY OF OWASSO, OKLAHOMA YEAR ENDED JUNE 30, 2023 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, 2023, 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 $56,866,743 at June 30, 2023. The difference between the carrying amount of deposits and the bank balance is due to outstanding checks and deposits. As of June 30, 2023, 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 $9,720 of the discretely presented component unit were insured with Federal Deposit Insurance Corporation Insurance, Total carrying value of the deposits was $9,720. FN Page 22 NOTES TO BASIC FINANCIAL STATEMENTS — Continued CITY OF OWASSO, OKLAHOMA YEAR ENDED JUNE 30, 2023 3.B -- Accounts Receivable Accounts receivable outstanding at June 30, 2023 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 3.0 -- Restricted Assets Governmental Activities Business -Tyne Activities Owasso Other Internal General Government Service Fund Funds Funds Total $ - $ 74,784 $ - $ 74,784 199,009 - - 199,009 901,771 - - 901,771 55,590 - - 55,590 17,158 - - 17,158 - 222747 - 222,747 - 1,745,347 - 1,745,347 2,452 - 783 3;235 (846,881) (580,6821 - (1,427,5631 $ 329,099 $ 1,462,196 $ 783 $ 1,792,078 Business -Tyne Activities Owasso Owasso Internal Public Works Public Golf Service Authority Authority Funds Total $ 2,751,856 $ - $ - $ 2,751,856 2,864 38,446 277 41,587 (745,502) (745,5021 $ 2,009,218 $ 38,446 $ 277 $ 2,047,941 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 23 and deposits held for refund. FN Page 23 NOTES TO BASIC FINANCIAL STATEMENTS - Continued CITY OF OWASSO, OKLAHOMA YEAR ENDED JUNE 30, 2023 The restricted assets as of June 30, 2023 were as follows: Restricted Cash and Cash Equivalents Amount 2009B Revenue Note Account: Debt Service Account $ 377,790 2009C Revenue Note Account: Debt Service Account 130,374 2011 Promissory Note Account: Debt Service Account 99,938 2013 RC Promissory Note Account: Debt Service Account 108,200 2016 Revenue Note Trustee Account: Debt Service Account 259,440 2018 Revenue Note Trustee Account: Debt Service Account 107,554 2019 Promissory Note Trustee Accounts: Debt Service Account 600,026 2020 Revenue Note Trustee Accounts: Debt Service Account 107,663 Deposits held for refund 875,786 TOTAL RESTRICTED ASSETS 2,666,771 FN Page 24 NOTES TO BASIC FINANCIAL STATEMENTS - Continued CITY OF OWASSO, OKLAHOMA YEAR ENDED JUNE 30, 2023 1D-- Capital Assets Capital asset activity for the fiscal year ended June 30, 2023 was as follows: FN Page 25 June 30. 2022 Additions Transfers Reductions June W. M23 GavemmeMal aC6vB(as: Non-deprecbble: Land ; 14,748.272 $ 2445900 ; - $ (549,8551 $ 16,646217 Construction N progress 45.314.734 18.931.10 119199813 %1 M.24].582 Total noadepreebble assets at hhtarical met 60963906 216]6.981 1235481901 60,091,799 0epmciabk: Buildings 28.157.644 108071 - - 28250.515 Improvements 29.248763 4.201.316 - - 334580.7 Machlnery and equipment 19.133.610 1,082455 (679B) 1422152) 19,787.115 hlartructute 132.851.471 13.194.345 146045.816 Total depreclable asseb al hidedcal cost 209.391.488 16.578987 1617981 (dY21521 22],541.525 Lev: accumulated daRedaBon: BOIldngs (7.897.326) (1.1]].854) - - (9.0]5,1110) Improvements (10315.560) 11.519,9901 - - (12435.5501 Machinery and equipment 112953.780) 11.31].680) 6,798 428449 113.844.2131 Inhashucture f67.6260741 14.634.2151 (71.260.2891 Total accumulated degaciotbn 199.392.7401 18.649.1391 6798 420.449 1101.615.2321 Nei depreciable amts 109.998.748 9.929.248 - ILJSiI 119.926293 Am.nit ed: RighHause leased machinery and equipment 190.204 761.515 - - 921.719 Rght -taus. mbscnplien amts 788:841 ]68.841 Total amodbed 190.204 1.520.354 1.710 560 Lass: accumulated amorlholbn: Right -fame leased machlnery and equipment (45.567) 12211.4451 - 1274,0121 Right -touse subscription assets 1250.]241 - 12507241 Total accumulated amortization 145.5671 14 ".1691 1524.7361 Net amodbed assets 144.637 I.M.187 1.1115.824 Governmental aclivitle, captial asseb. net f 178206.391 S 32.30,418 $ S (21549.893) S 182003.916 stet..- typeacwWor Non-depreciable: Land $ 322619 $ 224,211 $ - $ - $ 546.050 Con t%,cXan In progress 22216,715 8.957.298 16.592.1001 24.571.913 Total nondep7 labk assets at Ist.r lcost 22529 .334 9.181.529 - 16.592.1001 25.118.763 I)eWeclabie: Bulbings 2,811.746 55.500 - - 2867.246 Improvements 3,974,098 81" - - 3,982.698 Machinery and equipment 7.006936 299,032 6.]98 - ].312]66 InBasf .t. 10.727.783 7.07.998 1684201 114.957.361 Total depreciable osseh al hbtoncal cost 121.52(1.S0 7.661.1W 6.98 IMAM 129.120.071 Less: accumulated depreciation: Bulfdings 12B52o561 (45.]19) - - 12.09].769) Improvements 12613.8(N) 1119.8331 _ rL]3360) Machtuclute equipment 13.854.664) (571,486) 16.,79111 - (4.432.9181 Inhashuchue 150.566.515) 12833.1951 26,552 fA 3711581 Total accumulated dep=lallon 159.087.0361 13510= 167981 28,552 162.05.5171 Netdepraciableavets 62433.525 4,090.897 1399681 66.484.554 Amortired: Right -to-use leased machinery and equipment - X6,13(1] - - 306907 Rlgh4b . subscdptbn asseb - 86.505 86.505 Toted amodhed 393312 - 393.312 Less: accumulated amedlealion: Bight -touse kneed machinery and equipment - (76.=) - - 176.702) Rghf-tousasubmenip8onmseh 126,12ID 12MI201 Total accumulated amofihaf.n 1102,8221 11028221 Net .m axed assets 2g84g8 290490 Buslnev- type..Wlies capital asseb, net S 84.962 ,859 f 13.562916 ; $ 16,631.9681 ; 91.893.807 FN Page 25 NOTES TO BASIC FINANCIAL STATEMENTS - Continued CITY OF OWASSO, OKLAHOMA YEAR ENDED JUNE 30, 2023 Depreciation expense was charged to functions in the statement of activities as follows: Depreciation expense charged to governmental activities: $ 1,074,700 General government $ 556,695 Public safety 2,375,335 Community development 11,090 Culture and recreation 642,496 Public works 5,036,359 Sub -total 8,621,975 In addition, depreciation on capital assets held by the $ 46,915 City's internal service funds is charged to the various 13,674 functions based on their usage of the assets 27,764 Total Governmental Activities Depreciation Expense $8,649,739 Amortization expense charged to governmental activities: 4,303 General government $ 479,169 Depreciation expense charged to business -tvpe activities Water $ 1,074,700 Refuse 203,806 Wastewater 1,991,858 Recycle center 8,618 Golf course 291,251 Total Business -Type Activities Depreciation Expense $3,570,233 Amortization expense charged to business -type activities: Water $ 46,915 Refuse 13,674 Wastewater 27,030 Recycle center 10,900 Golf course 4,303 Total Business -Type Activities Amortization Expense 1 102,822 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 $152,633 as of June 30, 2023. FN Page 26 NOTES TO BASIC FINANCIAL STATEMENTS - Continued CITY OF OWASSO, OKLAHOMA YEAR ENDED JUNE 30, 2023 The minimum lease payments due under the lease are as follows: Principal Interest Total 2024 $ 59,588 $ 2,901 $ 62,489 2025 46,154 713 46,867 Total $ 105,742 $ 3,614 $ 109,356 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 $257,775 as of June 30, 2023. The minimum lease payments due under the lease are as follows: In January 2023, OPGA entered into two additional lease- purchase agreements with Yamaha Motor Finance Corporation for equipment to be used at the Bailey Ranch Golf Course. The leases were recorded as financed purchases with the addition of machinery in the amount of $59,742, interest rates of 4.20% and terms of 48 months. Payments for principal and interest are due monthly. The net book value of the assets acquired under this agreement is $53,519 as of June 30, 2023. The minimum lease payments due under the leases are as follows: Principal Interest Total 2024 $ 33,061 $ 12,429 $ 45,490 2025 34,437 11,053 45,490 2026 251,696 8,873 260,569 Total $ 319,194 $ 32,355 $ 351,549 In January 2023, OPGA entered into two additional lease- purchase agreements with Yamaha Motor Finance Corporation for equipment to be used at the Bailey Ranch Golf Course. The leases were recorded as financed purchases with the addition of machinery in the amount of $59,742, interest rates of 4.20% and terms of 48 months. Payments for principal and interest are due monthly. The net book value of the assets acquired under this agreement is $53,519 as of June 30, 2023. The minimum lease payments due under the leases are as follows: FN Page 27 Principal Interest Total 2024 $ 10,342 $ 2,030 $ 12,372 2025 10,770 1,603 12,373 2026 11,215 1,157 12,372 2027 22,398 406 22,804 Total $ 54,725 $ 5,196 $ 59,921 FN Page 27 NOTES TO BASIC FINANCIAL STATEMENTS - Continued CITY OF OWASSO, OKLAHOMA YEAR ENDED JUNE 30, 2023 3.E -- Leases The City, as a lessee, . has entered into lease agreements involving machinery and equipment as summarized below: Governmental Activities - Lease Obligations Payable 2023 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, 2023 is $9,935 with accumulated amortization of $5,856. $ 4,081 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 3.697.. The value of the right -to -use asset as of June 30, 2023 is $21,781 with accumulated amortization of $9,279. 12,903 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, 2023 is $130,066 with accumulated amortization of $65,033. 95,487 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, 2023 is $21,174 with accumulated amortization of $8,066. 14,241 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, 2023 is $7,250 with accumulated amortization of $2,900. 5,329 In fiscal year 2023, the City entered into twenty -four 48 -month leases as a lessee for the use of vehicles. Initial lease liabilities were recorded in the amount of $731,515. The City is required to make monthly fixed payments ranging from $377 - $1,042. The leases have interest rates ranging from 3.22% - 6.68 %. The value of the right -to -use assets as of June 30, 2023 is $731,513 with accumulated amortization of $182,878. 673,468 TOTAL LEASE OBLIGATIONS PAYABLE $ 805,509 Business -Tyae Activities - Lease Obligations Payable 2023 In fiscal year 2023, the City entered into nine 48 -month leases as a lessee for the use of vehicles. Initial lease liabilities were recorded in the amount of $306,807. The City is required to make monthly fixed payments ranging from $602 - $974. The leases have interest rates ranging from 3.22% - 6.68 %. The value of the right -to -use assets as of June 30, 20231s $306,807 with accumulated amortization of $76,702. $ 268,874 FN Page 28 NOTES TO BASIC FINANCIAL STATEMENTS - Continued CITY OF OWASSO, OKLAHOMA YEAR ENDED JUNE 30, 2023 Principal and Interest Requirements to Maturity gal Year Governmental Activities Principal Payments Interest Payments Total Payments 2024 $ 216,205 $ 36,186 $ 252,391 2025 226,648 25,051 251,699 2026 229,414 13,362 242,776 2027 133,242 3,132 136,374 Total $ 805,509 $ 77,731 $ 883,240 Business -Type Activities Fiscal Year Principal Payments Interest Payments Total Payments 2024 $ 71,536 $ 13,824 $ 85,360 2025 75,430 9,930 85,360 2026 79,549 5,811 85,360 2027 62,359 1,554 63,913 Total $ 288,874 $ 31,119 $ 319,993 3.F -- Subscription -Based Information Technology Arrangements (SBITAs) The City has entered into SBITAs as summarized below: Governmental Activities - SBITA Obligations Payable On October 1, 2022, the City entered into a 36 month subscription for the use of iWorQ Work Order Management Software. An initial subscription liability was recorded in the amount of $70,352. As of June 30, 2023, the value of the subscription liability is $53,585. The City is required to make annual fixed payments of $25,000. The subscription has an interest rate of 4.2 %. The value of the right to use asset as of June 30, 2023 is $70,352 with accumulated amortization of $23,451. On September 1, 2022, the City entered into a 36 month subscription for the use of Motorola Advance Plus Services Software. An initial subscription liability was recorded In the amount of $80,874. As of June 30, 2023, the value of the subscription liability is $59,419. The City is required to make annual fixed payments of $28,739. The subscription has an interest rate of 4.2 %. The value of the right to use asset as of June 30, 2023 is $80,874 with accumulated amortization of $26,958. 2023 53,585 59,419 FIN Page 29 NOTES TO BASIC FINANCIAL STATEMENTS - Continued CITY OF OWASSO, OKLAHOMA YEAR ENDED JUNE 30, 2023 On October 20, 2020, the City entered into a 60 month subscription for the use of Axon Body Camera Software. An initial subscription liability was recorded in the amount of $248,867. As of June 30, 2023, the value of the subscription liability is $175,442. The City is required to make annual fixed payments of $81,375. The subscription has an interest rate of 3.69 %. The value of the right to use asset as of June 30, 2023 is $248,867 with accumulated amortization of $74,206. $ 175,442 On September 1, 2022, the City entered into a 36 month subscription for the use of Tyler Technology Incode Software. An initial subscription liability was recorded in the amount of $131,800. As of June 30, 2023, the value of the subscription liability is $96,836. The City is required to make annual fixed payments of $46,836. The subscription has an interest rate of 4.2 %. The value of the right to use asset as of June 30, 2023 is $131,800 with accumulated amortization of $43,933. 96,836 On June 1, 2013, the City entered into a 144 month subscription for the use of AV Capture All Software. An initial subscription liability was recorded in the amount of $8,458. As of June 30, 2023, the value of the subscription liability is $5,621. The City is required to make annual fixed payments of $3,000. The subscription has an interest rate of 2.28 %. The value of the right to use asset as of June 30, 2023 is $8,458 with accumulated amortization of $2,622. 5,621 On October 1, 2018, the City entered into a 84 month subscription for the use of AutoCAD Software. An initial subscription liability was recorded in the amount of $20,851. As of June 30, 2023, the value of the subscription liability is $14,735. The City is required to make annual fixed payments of $6,875. The subscription has an interest rate of 4.2 %. The value of the right to use asset as of June 30, 2023 is $20,851 with accumulated amortization of $5,947. 14,735 On December 1, 2019, the City entered into a 72 month subscription for the use of Enablepoint Software. An initial subscription liability was recorded in the amount of $17,309. As of June 30, 2023, the value of the subscription liability is $12,467. The City is required to make annual fixed payments of $5,400. The subscription has an interest rate of 3.69 %. The value of the right to use asset as of June 30, 2023 is $17,309 with accumulated amortization of $4,837. 12,467 On June 1, 2022, the City entered into a 36 month subscription for the use of CivicRec Software. An initial subscription liability was recorded in the amount of $24,460. As of June 30, 2023, the value of the subscription liability is $16,408. The City is required to make annual fixed payments of $8,925. The subscription has an interest rate of 4.2 %. The value of the right to use asset as of June 30, 2023 is $24,460 with accumulated amortization of $8,372. 16,408 FN Page 30 NOTES TO BASIC FINANCIAL STATEMENTS — Continued CITY OF OWASSO, OKLAHOMA YEAR ENDED JUNE 30, 2023 On October 1, 2019, the City entered into a 72 month subscription for the use of CivicHR Software. An initial subscription liability was recorded in the amount of $11,516. As of June 30, 2023, the value of the subscription liability is $8,023. The City is required to make annual fixed payments of $3,859. The subscription has an interest rate of 3.69 %. The value of the right to use asset as of June 30, 2023 is $11,516 with accumulated amortization of $3,457. $ 8,023 On May 1, 2021, the City entered into a 48 month subscription for the use of ESO Reporting Software. An initial subscription liability was recorded in the amount of $60,851. As of June 30, 2023, the value of the subscription liability is $40,096. The City is required to make annual fixed payments of $22,652. The subscription has an interest rate of 3.69 %. The value of the right to use asset as of June 30, 2023 is $60,852 with accumulated amortization of $21,030. 40,096 On July 1, 2022, the City entered into a 36 month subscription for the use of Trello Project Management Software. An initial subscription liability was recorded in the amount of $2,364. As of June 30, 2023, the value of the subscription liability is $1,609. The City is required to make annual fixed payments of $840. The subscription has an interest rate of 42 %. The value of the right to use asset as of June 30, 2023 is $2,364 with accumulated amortization of $788. 1,609 On September 1, 2021, the City entered into a 48 month subscription for the use of Motorola Astro Software. An initial subscription liability was recorded in the amount of $94,185. As of June 30, 2023, the value of the subscription liability is $65,782. The City is required to make annual fixed payments of $31,816. The subscription has an interest rate of 4.2 %. The value of the right to use asset as of June 30, 2023 is $94,184 with accumulated amortization of $29,240. 65,782 On February 1, 2017, the City entered into a 108 month subscription for the use of ManagerPlus Solutions Software. An initial subscription liability was recorded in the amount of $16,954. As of June 30, 2023, the value of the subscription liability is $10,608. The City is required to make annual fixed payments of $6,937. The subscription has an interest rate of 4.2 %. The value of the right to use asset as of June 30, 2023 is $16,954 with accumulated amortization of $5,883. This subscription is in an internal service fund. The subscription asset is recorded in governmental activities, and the subscription liability is allocated between government -wide and business -type activities. 7.832 $ 557,855 FN Page 31 NOTES TO BASIC FINANCIAL STATEMENTS — Continued CITY OF OWASSO, OKLAHOMA YEAR ENDED JUNE 30, 2023 O]"91 rerel gel . .. On November 1, 2021, the City entered into a 60 month subscription for the use of Neptune 360 Data Software. An initial subscription liability was recorded in the amount of $73,601. As of June 30, 2023, the value of the subscription liability is $52,462. The City is required to make annual fixed payments of $23,500. The subscription has an interest rate of 3.69 %. The value of the right to use asset as of June 30, 2023 is $73,602 with accumulated amortization of $21,817. $ 52,462 On December 1, 2022, the City entered into a 48 month subscription for the use of Cybergolf Software. An initial subscription liability was recorded in the amount of $9,484. As of June 30, 2023, the value of the subscription liability is $8,198. The City is required to make annual fixed payments of $2,580. The subscription has an interest rate of 4.2 %. The value of the right to use asset as of June 30, 2023 is $9,484 with accumulated amortization of $2,371. 8,198 On January 1, 2020, the City entered into a 48 month subscription for the use of SmartShop Software. An initial subscription liability was recorded In the amount of $2,623. As of June 30, 2023, the value of the subscription liability is $890. The City is required to make annual fixed payments of $1,800. The subscription has an interest rate of 3.69 %. The value of the right to use asset as of June 30, 2023 is $2,623 with accumulated amortization of $1,671. 890 On July 1, 2021, the City entered into a 144 month subscription for the use of SPARKS Web Software. An initial subscription liability was recorded in the amount of $796. As of June 30, 2023, the value of the subscription liability is $513. The City is required to make annual fixed payments of $299. The subscription has an interest rate of 2.28 %. The value of the right to use asset as of June 30, 2023 is $796 with accumulated amortization of $261. 513 On February 1, 2017, the City entered into a 108 month subscription for the use of ManagerPlus Solutions Software. An initial subscription liability was recorded in the amount of $16,954. As of June 30, 2023, the value of the subscription liability is $10,608. The City is required to make annual fixed payments of $6,937. The subscription has an interest rate of 4.2 %. The value of the right to use asset as of June 30, 2023 is $11,071 with accumulated amortization of $5,883. This subscription is in an internal service fund. The subscription asset is recorded in governmental activities, and the subscription liability is allocated between government -wide and business -type activities. 2,776 $ 64,839 FN Page 32 NOTES TO BASIC FINANCIAL STATEMENTS - Continued CITY OF OWASSO, OKLAHOMA YEAR ENDED JUNE 30, 2023 Principal and Interest Requirements to Maturity 3.G -- Long -Term Debt Business -Type Activities Long -Term Debt: As of June 30, 2023, the long -term debt payable from enterprise fund resources consisted of the following: Nolen Payable: 2009B OWRB Note Payable, dated December 8, 2009, original amount Governmental Activities Fiscal Year Principal Payments Interest Payments Total Payments 2024 $ 252,881 $ 17,506 $ 270,387 2025 of $3,115,030 with an Interest rate of 2.11% plus administration fee of 0.59k semiannual 256,166 7,370 263,536 2026 48,808 297 49,105 Total $ 557,855 $ 25,173 $ 583,028 Current portion $ 1,634,732 Business -Type Activities 31.089300 Fiscal Year Principal Payments Interest Payments Total Payments 2024 $ 27,125 $ 1,969 $ 29,094 2025 26,399 965 27,364 2026 10,252 161 10,413 2027 1,063 11 1,074 Total $ 64,839 $ 3,106 $ 67,945 3.G -- Long -Term Debt Business -Type Activities Long -Term Debt: As of June 30, 2023, the long -term debt payable from enterprise fund resources consisted of the following: Nolen Payable: 2009B OWRB Note Payable, dated December 8, 2009, original amount of $10,795,000 with an Interest rate of 1.78% plus adMnistratlon fee of 0.5%: semiannual Installments of principal. Interest and adminshatlon fee; final maturity September 15, 2031 $ 5,043,467 2009C OWRB Note Payable, dated December 8, 2009, original amount of $4.510,000 With an Interest rate of 1.75% plus administration fee of 0.5 %; semiannual Installments of principal, Interest and administration fee; final maturity March 15,2D31 1,997454 2011 Interim Series OWRB Note Payable, dated November 17, 2011, original amount of $3,115,030 with an Interest rate of 2.11% plus administration fee of 0.59k semiannual Installments of principal Interest and adminstration fee; final maturity September T5,2032 1,440,463 2013 Series CWSRF Promissory Note, dated December 2013. arigirwl amount not to exceed $3,425,000, fixed Interest rate of 1.78% plus admin. fee of 0.5% semiannual Instalments of principal and Interest, final maturity March 15,'2026 677,648 2019C O WR8 Note Payable, dated July 30,2D1 9, original amount of $23,805,000 with a variable interest rate and semiannual installments of principal and Interest: Owl maturity October 1, 2049 23.365.000 Total Notes Payable $ 32,724,032 Current portion $ 1,634,732 Non - current portion 31.089300 Net notes payable $ 32.724,032 FN Page 33 NOTES TO BASIC FINANCIAL STATEMENTS - Continued CITY OF OWASSO, OKLAHOMA YEAR ENDED JUNE 30, 2023 Revenue Notes Payable: Series 2016 Sales Tax Revenue Note Payable dated November 15.2016. Issued by Owasso Pubic Works Authority, secured by pledge of sales tax revenues only, original amount of $21,265,000 with an annual Interest rate of 134 %, semiannual principal payments varying from $275,000 to $1,395,000 due each June 1 and December 1 with final maturity December 1, 2026 $ 9,465,000 Series 2018 Sales Tax Revenue Note Payable dated May 24, 2018, Issued by Owasso Public Works Authority, secured by pledge of sales lax revenues any, original amount of $9,800,000 With an annual interest rate of 2.80 %, semiannual principal payments varying from $425,000 to $975,000 due each June 1 and December 1 with final maturity June 1, 2028 5,665,000 Series 2020 Sales Tax Revenue Note Payable dated April 30, 2020, Issued by Owasso Public Works Authority, secured by pledge of sales tax revenues only, original amount of $12,000,000 with an annual interest role of 2,15 %, semiannual principal varying from $425.000 to $560,000 due each June I and December I with a final maturity date of June 1, 2032 9,279.000 Total Revenue Notes Payable $ 24,409,000 Current portion $ 4,581,000 Noncurrent portion 19,828,000 Net revenue notes payable $ 24,409.000 Changes in Lona -Term Debt: The following is a summary of changes in long -term debt for the year ended June 30, 2023: Balance Balance Due Within June 30, 2022 Additions Deductions June 30, 2023 one year Governmental Activities: $ 557,855 $ 252,881 SBITAs - direct obligation $ - $ 784,405 Leases - direct obligation 174,924 731,515 Total OPEB liability 1,500,443 190,001 Net pension liability 10,069,982 23,662,359 Risk management claims liability 679,053 4,392,513 Accrued compensated absences 2,458,883 2,090,399 Total Governmental Activities $ 14,883,285 $ 31,851,192 Business -Type Activities: $ 557,855 $ 252,881 Financed purchases - direct 805,509 216,205 obligation $ 514,107 $ 59,742 Deposits subject to refund 839,026 208,589 Notes payable 34,335,688 - Plus premium on notes payable 2,690,292 - Revenue notes payable 28,891,000 - SBITAs - direct obligation - 90,941 Leases - direct obligation - 306,807 Total OPEB liability 328,020 50,182 Net pension liability - 1,893,348 Risk management claims liability 177,147 1,603,422 Accrued compensated absences 191,359 209,763 Total Business -Type Activities $ 67,966,639 $ 4,422,794 $ (226,550) $ 557,855 $ 252,881 (100,930) 805,509 216,205 (156,663) 1,533,781 - (11,700,425) 22,031,916 - (4,403,060) 668,506 486,100 (1,880,7961 2,668,486 1,254,189 $ (18,468,4241 $ 28,266,053 $ 2,209,375 $ (94,188) $ 479,661 $ 102,991 (171,829) 875,786. 192,673 (1,611,656) 32,724,032 1,634,732 (98,726) 2,591,566 98,726 (4,482,000) 24,409,000 4,581,000 (26,102) 64,839 27,125 (17,933) 288,874 71,536 (41,377) 336,825 - (1,097,831) 795,517 - (1,543,675) 236,894 172,256 (202,1971 198,925 93,495 $ (9,387,5141 $ 63,001,919 $ 6,974,534 FN Page 34 NOTES TO BASIC FINANCIAL STATEMENTS - Continued CITY OF OWASSO, OKLAHOMA YEAR ENDED JUNE 30, 2023 For the governmental activities, SBITAs, 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, 2023 are as follows: $ 24,409,000 $ 1,815,688 1 32,724,032 1 16,589,663 Pledged Revenues: The City has pledged proceeds from a 2% sales tax, along with revenues from water, wastewater, sanitation, and golf, to repay the 2009B, 2009C, 2011, 2013, and 2019C SRF OWRB notes payable. The notes are payable through 2050 and were used to finance various OPWA projects. The total principal and interest payable for the remainder of the term of the notes is $49,313,695. Pledged revenue received in the current year totaled $41,071,822. Debt service payments of $2,886,119 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 $26,224,688. Pledged revenue received in the current year totaled $11,224,857. Debt service payments of $5,088,673 for the current year were 45% of pledged revenue. FN Page 35 Business -Type Activities Revenue Note Payable Notes Payable Year Ending June 30, Principal Interest Principal Interest 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 2,554,000 144,715 1,553,822 1,014,229 2029 -2033 4,330,000 211,872 6,966,789 4,199,184 2034 -2038 - - 3,995,000 3,198,533 2039 -2043 - - 4,910,000 2,268,208 2044 -2048 - - 5,990,000 1,175,702 2049 -2050 - - 2,745,000 111,563 $ 24,409,000 $ 1,815,688 1 32,724,032 1 16,589,663 Pledged Revenues: The City has pledged proceeds from a 2% sales tax, along with revenues from water, wastewater, sanitation, and golf, to repay the 2009B, 2009C, 2011, 2013, and 2019C SRF OWRB notes payable. The notes are payable through 2050 and were used to finance various OPWA projects. The total principal and interest payable for the remainder of the term of the notes is $49,313,695. Pledged revenue received in the current year totaled $41,071,822. Debt service payments of $2,886,119 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 $26,224,688. Pledged revenue received in the current year totaled $11,224,857. Debt service payments of $5,088,673 for the current year were 45% of pledged revenue. FN Page 35 NOTES TO BASIC FINANCIAL STATEMENTS - Continued CITY OF OWASSO, OKLAHOMA YEAR ENDED JUNE 30, 2023 3.11-- interfund Balances and Activities Due to /from balances at June 30, 2023 consist of sales tax per debt indentures, capital improvements, TIF revenues to OPWA, and for debt service. Interfund receivables and payables at June 30, 2023 consist of the following: Due To Governmental Funds: Major Funds Capital Improvement Fund Enterprise Funds: Major Funds OPWA Total Primary Government Total General Fund From Nonmajor Govt'I. Funds OPWA $ 807,284 $ - $ - $ 807,284 1,517,149 1,430,176 86,973 - $ 2,324,433 $ 1,430,176 $ 86,973 $ 807,284 Intertund 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. Intertund transfers for the year ended June 30, 2023 consist of the following: Transfer From Nonmajor Govt'I Transfer To Total General Fund Funds OPWA Governmental Funds: Major Funds General Fund Half -Penny Sales Tax Fund Capital Improvement Fund Nonmajor Govt'I Funds Total Government Funds Enterprise Funds: Major Funds OPWA OPGA Total Enterprise Funds Total Primary Government $ 22,367,645 $ - $ - $ 22,367,645 1,134,515 1,134,515 - - 9,549,044 - - 9,549,044 1,259,084 1,259,084 34,310,288 2,393,599 - 31,916,689 34,290,050 33,753,743 536,307 - 1,040,000 1,040,000 - - 35.330,050 34,793,743 536,307 - $ 69,640,338 $ 37,187,342 $ 536,307 $ 31,916,689 FN Page 36 NOTES TO BASIC FINANCIAL STATEMENTS - Continued CITY OF OWASSO, OKLAHOMA YEAR ENDED JUNE 30, 2023 NOTE 4- -OTHER NOTES AA -- 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 Pension Benefit Plan Oklahoma Municipal Retirement Fund Agent Multiple Employer Defined Benefit Plan (OkMRF) $ 1292,292) Oklahoma Municipal Retirement System Agent Multiple Employer Defined Contribution Master Defined Contribution Plan (OMRF) Plan 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 /fors. 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. FN Page 37 Net Pension Deterred Outlaws Deferred Inflows Asset(Ilabllity) Pension Expense Frefighters Pension System $ 6,837.463 $ 1292,292) $ (20,287.616) $ 3,324,491 Police Pension System 2,138,084 (129,260) 1,001,578 242,598 Oklahoma Municipal Retirement Fund Plan 3.257.199 (639,940) 12539.8171 1,004265 Totals 12232746 E 11,061,4921 _$ 121925.8551 $ 4,571.354 Reconclflal Ion to government -wide financial statements: Governmental $ 11,232,618 $ (877.017) $ (21.030,3381 $ 4 ,267,670 Business -type 1,000.128 1184,475) 17955171 303.684 Total deferred outflow, of resources $ 12.232746 $ (1.061,4921 $ 121,825.855) $ 4571.354 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 /fors. 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. FN Page 37 NOTES TO BASIC FINANCIAL STATEMENTS - Continued CITY OF OWASSO, OKLAHOMA YEAR ENDED JUNE 30, 2023 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, with a maximum of 30 years of service. For disabilities not -in- the - line -of -duty, the benefit is limited to only those with less than 20 years of service and is 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. 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 2023 contributions to the pension plan from the City were $746,950 and are reflected as deferred outflows of resources. The State of Oklahoma also made on- behalf contributions to OFPRS in the amount of $1,589,241, 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, 2023, the City reported a liability of $20,287,616 for Its proportionate share of the OFPRS net pension liability. The net pension liability was measured as of June 30, 2022, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of July 1, 2022, 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, 2022. Based upon this information, the City's proportion was 1.5513563% (up from 1.529076% in FY 2022). FN Page 38 NOTES TO BASIC FINANCIAL STATEMENTS - Continued CITY OF OWASSO, OKLAHOMA YEAR ENDED JUNE 30, 2023 For the year ended June 30, 2023, the City recognized a pension expense of $3,324,491. At June 30, 2023, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Differences between expected and actual experience Net difference between projected and actual earnings on pension plan investments Changes in proportion Change in assumptions City contributions subsequent to the measurement date Total Deferred Outflows Deferred Inflows of Resources of Resources 2,604,384 $ (102,417) 2,357,639 1,128,490 (60,525) - (129,350) 746,950 $ 6,837,463 1 (292,292) The $746,950 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, 2024. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: Amortization Year ended June 30: Expense 2024 $ 1,763,184 2025 1,435,765 2026 425,697 2027 2,173,575 Total $ 5,798,221 Actuarial Assumptions - The total pension liability was determined by an actuarial valuation as of July 1, 2022, using the following actuarial assumptions, applied to all prior periods included in the measurement: Inflation: 2.75% Salary increases: 2.75% to 10.50% Investment rate of return: 7.5% net of pension plan investment expenses FN Page 39 NOTES TO BASIC FINANCIAL STATEMENTS — Continued CITY OF OWASSO, OKLAHOMA YEAR ENDED JUNE 30, 2023 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, 2022 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, 2022, 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 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 36.0% 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. FN Page 40 Target Long -Term Expected Asset Class Allocation Real Rate of Return Fixed income 2076 3.6217. Domestic equity 4297. 5.66% International equity 15% 8.34% Real estate 10% 7.64% Other assets 13% 5.08% 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 36.0% 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. FN Page 40 NOTES TO BASIC FINANCIAL STATEMENTS— Continued CITY OF OWASSO, OKLAHOMA YEAR ENDED JUNE 30, 2023 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 a discount rate that is one percentage point lower or one percentage point higher than the current rate: 1% Decrease Current Discount 1% Increase (6.5 %) Rate (7.5 %) (8.5 %) City's net pension liability $ 26,142,164 $ 20,287,616 $ 15,390,581 Pension Plan Fiduciary Net Position - Detailed information about the pension plan's fiduciary net position Is available in the separately issued financial report of the OFPRS which can be located at www.ok.gov /fors. 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 1l 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 000rs.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. FN Page 41 NOTES TO BASIC FINANCIAL STATEMENTS — Continued CITY OF OWASSO, OKLAHOMA YEAR ENDED JUNE 30, 2023 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 refired participant. The beneficiary of any active participant killed in the line of duty is entitled to a pension benefit. 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 2023 contributions to the pension plan from the City were $634,591 and are reflected as deferred outflows of resources. The State of Oklahoma also made on- behalf contributions to OPPRS in the amount of $497,692 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, 2023, the City reported an asset of $1,001,578 for its proportionate share of the OPPRS net pension asset. The net pension asset was measured as of June 30, 2022, and the total pension liability used to calculate the net pension asset was determined by an actuarial valuation as of July 1, 2022. 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, 2022. Based upon this information, the City's proportion was 1.248975% (up from 1.2427% in FY 2022). For the year ended June 30, 2023, the City recognized a pension expense of $242,598. At June 30, 2023, 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 $ 491,287 $ (109,098) 977,336 (20,162) 34,870 634,591 $ 2,136,084 $ (129,2601 FN Page 42 NOTES TO BASIC FINANCIAL STATEMENTS - Continued CITY OF OWASSO, OKLAHOMA YEAR ENDED JUNE 30, 2023 The $634,591 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, 2024. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: Actuarial Assumptions - The total pension liability was determined by an actuarial valuation as of July 1, 2022, 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 Collar Healthy Employees (generational using Scale AA) with age set back four years Active employees (post - retirement) and nondisabled pensioners: RP -2000 Combined Blue Collar Healthy Employees (generational using Scale AA) Disabled pensioners: RP -2000 Combined Blue Collar Healthy Employees with age set forward four years (no generational Improvement) The actuarial assumptions used in the July 1, 2022 valuation were based on the results of an actuarial experience study for the period July 1, 2012 to June 30, 2017. FN Page 43 Amortization Year ended June 30: Expense 2024 $ 308,387 2025 76,549 2026 (271,339) 2027 1,198,766 2028 61,870 Total $ 1,374,233 Actuarial Assumptions - The total pension liability was determined by an actuarial valuation as of July 1, 2022, 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 Collar Healthy Employees (generational using Scale AA) with age set back four years Active employees (post - retirement) and nondisabled pensioners: RP -2000 Combined Blue Collar Healthy Employees (generational using Scale AA) Disabled pensioners: RP -2000 Combined Blue Collar Healthy Employees with age set forward four years (no generational Improvement) The actuarial assumptions used in the July 1, 2022 valuation were based on the results of an actuarial experience study for the period July 1, 2012 to June 30, 2017. FN Page 43 NOTES TO BASIC FINANCIAL STATEMENTS - Continued CITY OF OWASSO, OKLAHOMA YEAR ENDED JUNE 30, 2023 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, 2022, 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. 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 7.570, as well as what the Plan's net pension asset would be if it were calculated using a discount rate that is one percentage point lower or one percentage point higher than the current rate: 1% Decrease Current Discount I% Increase (6.5 %) Rate (7.5 %) (8.5 %) City's net pension asset $ 2,901,868 $ 1,001,578 $ 4,300,945 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 opors.ok.00v. FN Page 44 Target Long -Term Expected Asset Class Allocation Real Rate of Return Fixed income 20% 3.347. Domestic equity 30% 4.69% International equity 20% 8.34% Real estate 15% 7.64% Private equity 15% 9.66% 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. 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 7.570, as well as what the Plan's net pension asset would be if it were calculated using a discount rate that is one percentage point lower or one percentage point higher than the current rate: 1% Decrease Current Discount I% Increase (6.5 %) Rate (7.5 %) (8.5 %) City's net pension asset $ 2,901,868 $ 1,001,578 $ 4,300,945 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 opors.ok.00v. FN Page 44 NOTES TO BASIC FINANCIAL STATEMENTS - Continued CITY OF OWASSO, OKLAHOMA YEAR ENDED JUNE 30, 2023 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 liability, deferred outflows and inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the City's plan and additions to /deductions from the City's fiduciary net position have been determined on the same basis as they are reported by OkMRF. For this purpose, benefit payments are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value based on published market prices. Detailed information about the OkMRF plan's fiduciary net position is available in the separately issued OkMRF financial report. FN Page 45 NOTES TO BASIC FINANCIAL STATEMENTS— Continued CITY OF OWASSO, OKLAHOMA YEAR ENDED JUNE 30, 2023 Eligibility Factors and Benefit Provisions - Provisions OkMRF Plan a. Eligible to Participate All regular, full -time employees except police, firefighters, Survivors in Payment Status 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 62 with 30 years Total of service or age 65 with 5 years of service - Early retirement at age 55 with 5 years of service - Disability retirement upon disability with 5 years of service - Death benefit with 5 years of service d. Benefit Determination Base Final average salary-the average of the five highest consecutive annual salaries out of the last 10 calendar years of service e. Benefit Determination Methods: - Normal Retirement 2.625% of final average salary multiplied by credited years of service - Early Retirement The accrued benefit payable starting at a normal retirement age, or the accrued benefit reduced by 5% per year for commencement prior to retirement age - Disability Retirement Some as normal retirement - Death Benefit 5D% 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 Employees Covered by Benefit Terms - Active Participants 157 Retired Participants in Payment Status 42 Survivors in Payment Status 6 Disabled Participants 3 Deferred Vested Former Employees 27 Total 235 FN Page 46 NOTES TO BASIC FINANCIAL STATEMENTS - Continued CITY OF OWASSO, OKLAHOMA YEAR ENDED JUNE 30, 2023 Contribution Requirements - The City Council has the authority to set and amend contribution rates by ordinance for the OkMRF defined benefit plan in accordance with O.S. Tile 11, Section 48 -102. The contribution rates for the current fiscal year have been made in accordance with an actuarially determined rate. The actuarially determined rate is 8.86% of covered payroll. Employees are required to contribute 4.26% of their annual pay. FY 2023 contributions to the pension plan from the City were $879,857. Actuarial Assumptions - Date of Last Actuarial Valuation July 1, 2022 a. Actuarial Cost Method Entry age normal 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 7.50% Ranges between 4.5% and 7.5% N/A 2.75% Inflation is Included in projected salary increase. PubG -2010 with projected mortality improvement m 3 years (female spouses younger) 1. Turnover Select and ultimate rates Ultimate rates are age - related as shown Additional rates per thousand are added during the first 5years: Yearl:225 Year2: 140 Year3:100 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 47 NOTES TO BASIC FINANCIAL STATEMENTS - Continued CITY OF OWASSO, OKLAHOMA YEAR ENDED JUNE 30, 2023 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, 2022 are summarized in the following table: Large cap stocks Small /mid cap stocks Long /short equity International stocks Fixed income bonds Target Allocation 25% 10% 10% 20% 30% Real estate 5% 100% Real Return Weighted Return 5.80% 1.45% 6.40% 0.64% 5.005o 0.50% 6.20% 1.24% 2.30% 0.69% 4.607o 0.23% Average Real Return 4.75% Inflation 2.75% Long -term expected return 7.50% FN Page 48 NOTES TO BASIC FINANCIAL STATEMENTS — Continued CITY OF OWASSO, OKLAHOMA YEAR ENDED JUNE 30, 2023 Changes in Net Pension (Asset) Liability - The total pension liability was determined based on an actuarial valuation performed as of July 1, 2022, which is also the measurement date. There were no changes in assumptions or changes in benefit terms that affected measurement of the total pension liability. The following table reports the components of changes in net pension (asset) liability: Balance at June 30, 2022 Changes for the year: Service cost Interest cost Differences between expected and actual experience Assumption changes Contributions - employer Contributions - employee Net investment income Benefit payments, including refunds Administrative expense Netchanges Balance at June 30, 2023 Total Pension Plan Fiduciary Net Net Pension Liability Position (Asset) Liability (a) (b) (a) - (b) $ 24,434,179 $ 25,994,873 $ (1,560,694) 959,447 - 959,447 1,805,980 - 1,805,980 (625,160) - (625,160) (159,140) - (159,140) - 854,254 (854,254) - 384,288 (384,288) - (3,312,696) 3,312,696 (721,942) (721,942) - (45,230) 45,230 1,259,185 (2,841,326) 4,100,511 $ 25,693,364 $ 23,153,547 $ 2,539,817 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 (asset) liability would be If it were calculated using a discount rate that is one percentage point lower or one percentage point higher than the current rate: City's net pension (asset) liability 1% Decrease Current Discount 1 %Increase (6.5 %) Rate (7.5 %) (8.5 %) $ 6,171,836 $ 2,539,817 $ (449,038) FN Page 49 NOTES TO BASIC FINANCIAL STATEMENTS - Continued CITY OF OWASSO, OKLAHOMA YEAR ENDED JUNE 30, 2023 Pension Liabilities, Pension Exaense, and Deferred Inflows and Outflows of Resources Related to Pensions - At June 30, 2023, the City reported a net pension liability of $2,539,817 for the OkMRF pension. The net pension liability was measured as of July 1, 2022, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of July 1, 2022. For the year ended June 30, 2023, the City recognized pension expense of $1,004,265. At June 30, 2023, 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 220,948 $ (511,345) 115,403 (128,5951 2,040,991 879,857 $ 3,257,199 $ (639,940) The $879,857 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, 2024. Other amounts reported deferred inflows of resources related to pensions will be recognized in pension expense as follows: Year ended June 30: 2024 Amortization Expense $ 392,798 2025 340,638 2026 126,988 2027 908,599 2028 (31,621) Total $7- 1,737,402 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 50 NOTES TO BASIC FINANCIAL STATEMENTS - Continued CITY OF OWASSO, OKLAHOMA YEAR ENDED JUNE 30, 2023 Oklahoma Municipal Retirement System Master Defined Contribution Plan (OMRF) Plan Description - The City has also provided a defined contribution plan and trust known as the City of Owasso Plan and Trust in the form of the Oklahoma Municipal Retirement System Master Defined Contribution Plan (OMRF). OMRF operations are supervised by a nine- member Board of Trustees elected by the participating municipalities. The plan is administered by JP Morgan Chase Bank, N.A. The defined contribution plan is available to all full -time employees. Benefits depend solely on amounts contributed to the plan plus investment earnings. Employees are eligible to participate upon hire and may make contributions to the plan. OMRF Contributions - Based upon employee contributions, the City's contributions vary from 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 409 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, 2023, the following amounts related to the defined contribution plan: Employee contributions $255,111 City contributions $127,555 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 51 NOTES TO BASIC FINANCIAL STATEMENTS — Continued CITY OF OWASSO, OKLAHOMA YEAR ENDED JUNE 30, 2023 Employees covered by benefit terms: At June 30, 2023, the following employees were covered by the benefit terms: Inactive employees currently receiving benefits 6 Active employees not yet receiving benefits 274 Total 280 Total OPEB Liab7ty - The City of Owasso total OPEB liability of $1,870,606 was measured as of June 30, 2023 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 Assumptions - The total OPEB liability in the June 30, 2023 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 - 4.13% Based on S &P Municipal Bond 20 Year High Grade Rate Index d. Healthcare Cost Trend Rate 4.50% e. Retirees' Share of Benefit - Related Costs 51.59% f. Mortality Rates - RPH -2014 Total Table with Projection MP -2021 The actuarial assumptions used in the June 30, 2023 valuation were based on the results of an actuarial experience study for the twelve -month period ending June 30, 2023. FN Page 52 NOTES TO BASIC FINANCIAL STATEMENTS — Continued CITY OF OWASSO, OKLAHOMA YEAR ENDED JUNE 30, 2023 Changes in the Total OPEB Liability - 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 one percentage point lower or one percentage point higher than the current discount rate: I% Decrease Discount Rate 1 %Increase 3.13% 4.13% 5.137a Total OPEB Liability $ 2,062,554 $ 1,870,606 $ 1,698,675 Sensitivity of the Total OPEB Liability to Changes 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 one percentage point lower or one percentage point higher than the current trend rate: Total OPEB Liability I% Decrease 3.50% $ 1,642,982 Health Care Cost Trend Rate 4.50% $ 1,870,606 1% Increase 5.50% $ 2,141,623 FN Page 53 Total OPEB Liability Balance as of July 1, 2022 $ 1,828,463 Changes for the year: Service cost 151,646 Interest 68,550 Differences between expected and actual experience 19,987 Changes in assumptions or other inputs (110,716) Benefit payments (87,324) Net changes 42,143 Balance as of June 30, 2023 $ 1,870,606 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 one percentage point lower or one percentage point higher than the current discount rate: I% Decrease Discount Rate 1 %Increase 3.13% 4.13% 5.137a Total OPEB Liability $ 2,062,554 $ 1,870,606 $ 1,698,675 Sensitivity of the Total OPEB Liability to Changes 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 one percentage point lower or one percentage point higher than the current trend rate: Total OPEB Liability I% Decrease 3.50% $ 1,642,982 Health Care Cost Trend Rate 4.50% $ 1,870,606 1% Increase 5.50% $ 2,141,623 FN Page 53 NOTES TO BASIC FINANCIAL STATEMENTS — Continued CITY OF OWASSO, OKLAHOMA YEAR ENDED JUNE 30, 2023 OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB - For the year ended June 30, 2023 the City of Owasso recognized OPEB expense of $135,206. At June 30, 2023, the City of Owasso had the following deferred outflows and deferred Inflows of resources related to OPEB. Deferred Outflows of Resources Differences between expected and actual experience $ 17,788 Changes in assumptions /inputs 97,079 Total $ 114,867 Deferred Inflows of Resources $ (337,621) (307,069) $ (644,690) Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows: FN Page 54 Amortization Year Ending June 30, Expense 2024 $ (84,990) 2025 (84,990) 2026 (84,990) 2027 (84,990) 2028 (63,099) Thereafter (126,764) Total $ (529,823) FN Page 54 NOTES TO BASIC FINANCIAL STATEMENTS - Continued CITY OF OWASSO, OKLAHOMA YEAR ENDED JUNE 30, 2023 4.0 - -Risk Management The City is exposed to various risks of loss related to torts, theft of, damage to, or destruction of assets; errors and omissions; injuries to employees; employees' health and life; and natural disasters. The City manages these various risks of loss as follows: Type of Loss Method Managed Risk of Loss Retained General Liability: Self- insured effective Entire risk of loss retained in - Torts November 2003. self- insurance fund. - Errors and omissions - Police liability - Vehicle (vehicles with purchase price > $ 125,000 are fully insured) Physical Property: -Theft - Damage to assets - Natural disasters Workers' Compensation: - Employee injuries Health: - Medical - Dental - Vision 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 AETNA. Claims Liability Analysis: The claims liabilities related to the above noted risks of loss that are retained are determined in accordance with the requirements of Government Accounting Standards Board (GASB) Statement 10, which requires state and local governmental entities, other than public entity risk pools, to report an estimated loss from a claim as an expenditure/ expense and as a liability if both of these conditions are met: a. Information available before the financial statements are issued indicates that it is probable that an asset had been impaired or a liability had been incurred at the date of the financial statements. It is implicit in this condition that it must be probable that one or more future events will also occur, confirming the fact of the loss, b.. The amount of the loss can be reasonably estimated. FN Page 55 NOTES TO BASIC FINANCIAL STATEMENTS — Continued CITY OF OWASSO, OKLAHOMA YEAR ENDED JUNE 30, 2023 For the risk management internal service self- insurance funds, changes in the claims liability for the City from July 1, 2021 to June 30, 2023 are as follows: Claims liability and related payables, July 1, 2021 Claims incurred and changes in estimates Claims paid Claims liability and related payables, June 30, 2022 Claims Incurred and changes in estimates Claims paid Claims liability and related payables, June 30, 2023 Workers' Compensations $ 527,000 27,644 (101,6441 453,000 20,566 (52,5661 $ 421,000 Healthcare $ 390,200 5,337,086 15,324,0861 403,200 5,874,233 (5,793,0331 $ 484,400 General Liability / Property 81,393 181,3931 54,262 (54,2621 Total Internal Service $ 917,200 5,446,123 f5,507,1231 856,200 5,949,061 (5,899,8611 $ 905,400 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, 2023, the contract amount related to OPWA payback agreements totaled $882,505. Some of the agreements expire after a period of time, whether or not the business has reached the maximum rebate amount specified in the agreement or has been reimbursed for any of the cost of infrastructure. All obligations of the City for infrastructure improvements in relation to the agreements have been met. A breakdown of tax abatements by recipient is prohibited by State statute due to required confidentiality of sales tax collections by vendor. FN Page 56 NOTES TO BASIC FINANCIAL STATEMENTS - Continued CITY OF OWASSO, OKLAHOMA YEAR ENDED JUNE 30, 2023 The City has various construction contracts at year -end. A substantial amount of these commitments are for infrastructure. At June 30, 2023, the City had some significant outstanding commitments on contracts in excess of $1,000,000. The total contract amounts were approximately $39.6 million, and the remaining balance on those contracts totaled approximately $26.4 million, as of June 30, 2023. A breakdown of the outstanding encumbrances follows: Fund General Half -Penny Sales Tax Vision Recapture Tax Capital Improvement Nonmajor Governmental OPWA OPGA Total Encumbrances Continaencies: Encumbrances $ 2,405,684 775,908 17,605,957 1,088,940 1,394,953 3,079,861 6,000 $ 26,357,303 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 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. 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, 2023, the City had not drawn down any of the funds. FN Page 57 NOTES TO BASIC FINANCIAL STATEMENTS - Continued CITY OF OWASSO, OKLAHOMA YEAR ENDED JUNE 30, 2023 NOTE S -- FUTURE ACCOUNTING PRONOUNCEMENTS The GASB has issued 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. 100, Accounting Changes and Error Corrections —an 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 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 58 REQUIRED SUPPLEMENTARY INFORMATION CITY OF OWASSO, OKLAHOMA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF CHANGES IN THE CITY'S TOTAL OPES UABIUIY AND RELATED RATIOS last 10 Fiscal Years Notes to Schedule: Irdormafion /or a0 prior yeao Is unavaffable There are no assets accumulated In a trust that meet the criteria of GA $8 cod' ?carton P22. 101 or P52. 101 to pay related heneMs lot the OPEB plan See independent auditors report as it relates to required supplementary information. RSI Page 1 2018 7019 2020 2021 2022 2023 Total OPE88ab8tly. SerAce cost $ 118,303 $ 122,893 $ 140.710 $ 175.547 $ 199,061 $ 151,646 Interest cost 72,235 72774 65,702 47,018 46,808 68,550 Differences between expected and actual experience - 1279,1531 180,039) 1154,8411 179.2961 19,987 Changes of assumption or other inputs - 12869 149.091 12530 1267,193) 1110,716) Benefit payments 148.8751 167.805) 169,2581 1SD.7211 177.761) 187,324) Net change in total OPEB Babifly, 141,663 1138.422) 2061206 29,533 1178,381) 42143 Total OPEB labiity- beginning 1.767,864 1,909,527 1.771,105 1,977,311 2006,844 1,828.463 Total OPEB labllly - enNng § 1,909,527 § 1.771,105 b 1377,311 § 2006 ,844 $ 1,82BA63 $ 1,870,606 Covered -employee payroll $ 14,835,673 $15,652240 $ 16,553.403 $ 17,921,347 $ 18,541.430 $ 20,728,820 Total OPEB labiliy, as a percentage of covered - employee payroll 12.87% 11.32% 11.95% 11.20,% 9.86% 9.02% Notes to Schedule: Irdormafion /or a0 prior yeao Is unavaffable There are no assets accumulated In a trust that meet the criteria of GA $8 cod' ?carton P22. 101 or P52. 101 to pay related heneMs lot the OPEB plan See independent auditors report as it relates to required supplementary information. RSI Page 1 crtr AI AwA6so,dnAxoMA SCNIOYSBO) CNRx4]S IN x5]IBW@N MINTY OSIANONA SIRIROMM ]MSION 41FIRIMINS Inn M WI 14 MCa lean nmmpevknOdNllpmdng M. 01 3 11A4151 S ISF0,095 $ 1629.610 S IIAA ;O 5_1l=.76 S 1149,IN $ 17BM.I29 S IOA9.M3 S IDMIAI, Nnwl9SCx.Me: Wdmdbnb.elq y.m0xwnl•04 See independent auditors' report as it relates to required supplementary information. RSI Page 2 T@5 WId MI] NIS M? $ @Y T @] N]f TB]] IeMpml•nl•OOIP. feMCe cml S )]3335 S 1IUM j ®I.. $ 03[.995 $ 411181 S 910.H5 j j IA9361 j IA3]F54 W e�aN [ml 10563]5 ]p66390 ],]01.1]9 ]F@.556 1W] ;01 2506,169 N., 6.ISB.YI •311.156 4.7W99 Clmee6N Eene011e�m9 118653111 fYRerercel CeMroenayecledmdxlW 9Rrellerce 362191 ISb)5 Y61,911 2]15166 1,6]1B1) 1]61614 13595N 206L% dA.@I AWnyllm [I,vg•� IY91M1 3•li•IIIPm'InenLLnwalgnnxlrx 121Y.15]1 121]SIYI 13,6@3191 L1140W 21@PP1) PSS4,n01 P.6@.1651 16.24M 1!.105,45]1 sl•ww5pneu cdcM1W - 4W) GagehggdHmnuN - 1.1)5.911 I.IISAJI 946,)1) 12]59,1011 3p393H 3911.4W =1611 33)J.113 931,175 Ol nl N•I CM1rtgi nlddpendonl@iNy I.IP8.911 1.605.168 JAIB ;]6 6"19"10 11]MF]51 ].6]46Y SRI<.660 6$tl.lY 251B.IR Told pengm Io Ny- Ceyn9ng b.Y5167 6p.19.M 62D)SOd 66911, 51,156.]90 69AI2]55 9 491. @3 N.MSdd] Y.9@pW Told p" -l�y d101ol 3 60.196256 3 62)993@ S 669)1, $ 51.156.10 5 19AI2y5 3 51.691. @3 3 "365.60 5 0,91A&9 $ 66A&b31 IWnMUCprynrlp.tltlm CW10Mbs�•md•yer S 664)51 S 101,6]1 { .1.14N j 5,31 3 53935] f 595ALL f Y0.1@ $ 615"4 $ 10391 CeNAbNbn- nmenWYx 1.161,311 M I3ID.]ID 19Mp0 LMUM I,37SM4 1.190"11 1.I15,M1 1.S ldu-emgoyeB MAII 111"11 112050 ]11.691 3329@ 95851 IIJb56 Y]Al2 M 1.4.)" N.,I- O.n 1,1021]1 1.19,M 1".. 6.1 @,115 1]50398 1309"05 16335.9011 e•oem p•NnenitNCAidng�ehnd •lempw••cm1rEN1w B.-M p, 12164191 12051/61 A,q 26Us.) 11110391) 11.103.131) =, 13356"30) 146@]45) N4NU1 16..A11) 11.IBSM) .5mn10 n14. vyn• 11u011 (.,v 1M.7 r59p951 193111 1]0.1 YI 1]11,) 9F91 Ixoal Clrng•FpapMlmMetlare •Iqm 11 )]1,911 1.110.11 612,3 113]1Nu) 21191@ 3.055$)1 13/A.O9 ])631) an.r n5ID71 zm IY 4u) 1315 MR2 Dam 179 N•IN Wl nel Jll]FT6 24N3@ ,]159 6.p541W 1,IH051 3$]29@ "1,91 1).6YA61) Cp Nm PduClvyllel P•+111•n'IRpOWnp pMW -Wjl 3165110 '"114611 3]A193M ]lY 5MIM1 ]991359 .W,vY55] 41. 11311,515 Y.835dd) nmlkAKhynelpgXM�enin3 (•) I]]Y9.101. .9Mll1 _5 D ;18,11 IA3_ 1 SA19;Y0 ]1"]].111 ]Sy1359 7 30.960351 �Bi6 6ri]i� $ M"..7 3 16.19)"]5 nmmpevknOdNllpmdng M. 01 3 11A4151 S ISF0,095 $ 1629.610 S IIAA ;O 5_1l=.76 S 1149,IN $ 17BM.I29 S IOA9.M3 S IDMIAI, Nnwl9SCx.Me: Wdmdbnb.elq y.m0xwnl•04 See independent auditors' report as it relates to required supplementary information. RSI Page 2 Cm OF OWASSO. ORIAHOMA SCNEOYIE OF PROPORTIONATE SNARE OF THE NO PENSION LIABILITY OKLAHOMA FIREFIGHTERS PENSION A RETIREMENT SYSTEM Larl 10 Fiscal Yeas Nota,fi,Uhedd. i6e uXadub 4 ac al Memeauromenl dale, whlc3 h one Yeatln artevn InlwmalMn ]wall pdw Yean h unavo8eble See independent auditors' report as it relates to required supplementary information. RSI Page 3 MIS 3016 M17 2018 2019 APO =1 1022 2029 Ch's propo`tlon of the net pamlan 8obl11ty 1246150% 1.419512% 113b286% 1.39954% 1.39539% 1.374360% 1.446065% I52M26% 1.551356% Gtys pfaperfi.te sham o1 the net pension Ilab81ty $12914854 $13ABA895 !116,250,410 $17.a79.313 $14,580)96 S I19Ad20 $17.021120 $10.069,982 $ 4,287,616 GNs wavered papd $ 3$92.364 $ 3.365.832 $ 3,639,341 $ 3.)64.20) $ 3.961.245 $ 4,44.878 $ 4.813.678 $ 5896.123 $ 5.119.128 a /s preporlbnate share of the not pension flabttyas a percentage OIX[cevafad payidl 399% d0.9% 4424 454% 366% 322% 368% ME 396% Plan OtludvrynatpaNlon asapercenta0e of lM1e total pension bb8fy 68.12% 694196 64.9% 66.61% 20.23% 7285% 69.98% 84.24% 69.49% Nota,fi,Uhedd. i6e uXadub 4 ac al Memeauromenl dale, whlc3 h one Yeatln artevn InlwmalMn ]wall pdw Yean h unavo8eble See independent auditors' report as it relates to required supplementary information. RSI Page 3 CITY OF OWASSO. OlUllo A O"HOM FIREFIGHTERS PENSION t REl1RFMENT SY TM L" 10 H d Yean Slolutordyre uired cwlrbuton CwMbuflons in relafon to the dalula0y required wnl Wiw ConhMfu ncl.W nap lexcesd arys wvered payra Cwlnbutl. as a pesaenta0e of wvered pay .P Nales%khadde, I0ro kn kea8pda yeas Is y bfv 2015 1016 1017 2018 1019 2010 1031 1021 1023 j 01,216 $ 509.508 $ 526,923 $ 556574 $ 622.163 S 678,115 $ 705.358 j 719.217 $ 743.132 471,216 309508 526,923 554.574 622163 678,115 705.058 719A11 76&132 $ - -L— 5 5 S S - $3,365,832 53,699.341 $3164.701 $3,961,245 $4,443.878 34513,678 55.336128 $5,119,128 5530&089 11.00% 141107. 14= 1480% 1460% 14w% 14M 1445% 14.007. See independent auditors' report as it relates to required supplementary information. RSI Page 4 CITY OF OWASSO, OKLAHOMA NOTES TO REQUIRED SUPPLEMENTARY INFORMATION OKLAHOMA FIREFIGHTERS PENSION L RETIREMENT SYSTEM For the fiscal year ended June 30, 2023 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 10.50% Inflation rate 2.75% per year Retirement age Normal retirement age is 50, or the date at which the participant would achieve 22 years of service, If later Mortality Pub -2010 Public Safety Table with generational mortality improvement using MP -2018 See independent auditors' report as it relates to required supplementary information. RSI Page 5 CNYOEOWASS0,aEW1oMA SCHmp1E OF CHANGES IN NET PENSION WBXITY (205358 ONIAH09M PONCE PENSION t RETIREMENT SYSTEM .110 NSVd Yvan me. Ism 1.1s 9: ldannaflvnbeRpMyumbvnaw3v61e See independent auditors' report as it relates to required supplementary information. R51 Page 6 Mtn 2016 3017 MIS 2019 500 bR1 20M 2p3 Tmd09mlen RRbW. Service cent j g6.'ffiI S 574129 j 616,955 $ 706.987 $ MON $ 7MV6 $ MOSS $ 8]9.132 $ M..59 Merest -1 120,1.00 11739,SM 1)31169 1,931514 1.970.717 208.294 2219337 24$ 569 25!11699 Cnarpe Nbee.Mle.s - N,E97 51Ylel pHaences bviween pmecled aM cclucl eWgiencv 1161948) H3(169) 6.367 14]0.940) 111&5151 191M93 1174120$ 71.170 518203 Aaunplbn Wnpes 3B9,74µ SeneN pa,mwIs, 9¢IMrq mfu (LOA,]II) (1.5)0.501 (11,197,1331 (1.616.299) 11675,491 (11720,201) 11.915)1 91 84x1831 (z164.e03) a Wo ]5X,1590 lM177 Ib5L373 1]1,911 Y.662 1,13680 1]6x01 Neie JoiIdpetsst NelcMnpe Nlelalpwkn WbilN 6]1.653 4eJ1, 7211)] 252615 1204],568 I.lb.bd 2505.815 28MM 2&ll.i91 116962016 tpldpombnBpbAlY- OePminO 19.1261136 19.777.788 2¢(W.050 320]5297 x954.912 384021X7 0.532864 8119.679 36921.210 Loltl penfbn RabilY -e rg lot 319,77,7W 32Q0i,M 520.75297 x950.912 39.0. 49s) $293841 38.119.6)9 E3 L M.M !I 379.656 NannaudwY nemplev en: conMbulkns -A-pl E 376.569 j 82139 E Q2984 S ,1X,335 $ 451106 S 47692 y 511.14 j 5592051 $ 59766 Conlnbulkxu- epee,. er WSEV 3]2511 %1611 11),610 44],197 473032 yzSU 19],693 Imm 199,]9 2215] 2aiv 250.x1 320.262 379,,16 275371 320391 517' 3 Nei htWbns-emerse Nel.rid 264808 789313 1151. ®II 2]19,13] 2319.81 I.7VIM5 655129 9.510511 .e 215191% menh. - reluMs alempbyescmlrmWpn 11A16XO) 11.fMW) 11,157.133) 11,616.59) 11,(19.6081 8.19,1011 (1.915]19) 84x141 8166.96 Ae irhinymenb,.nse AdnnbOalive eapene I16.]'A1 111) 119,2461 89.097) 1742011 2,1158 133.39Q (3665"1 136.970] in pmpMlm0le nM1Va olpbn 1918 3604018 (IP.]62i 1351.86 II4,'bl 38377 1,1]0.677 1,®1.8311 ZtlA4 01"r 0ewr nd01 6195 z00 1.351 841 m1 ISMS) Nei cMrgain pbn MUCbrynel paulkn 23528]1 1Wb11 10x113 20]1.69 661.7)3 1.166.66 l 10113 -b3 74) Pkln M1yicbrynel paillkm- bvONNr10 1])q]311 imli6 ]0.118115 xM.02 x860.6'13 9 20,1205.012 OM.771) 40.B9U18 PWnflWCbrynvl podlbn -endlq lD) ]x105115 5x%5.891 $91/2/50 2114MM $x48.632 3x910259 $39.6152012 M.605 7b,771,516 12.W716 310.0%019 $]].591,214 PhnS net perWan(Ones) WbEly- eMin01a1 -le 3 182321 $ 43120 $ 1.66.]4] y 4.93 $ 157.2091 S 1721601 31.36161 bIS961.4%1 E LWi.9B me. Ism 1.1s 9: ldannaflvnbeRpMyumbvnaw3v61e See independent auditors' report as it relates to required supplementary information. R51 Page 6 CU OF 0WASSO, ORIAHOMA SCHEDULE OF PROPORTIONATE SHARE OF IHE NET PENSION UABIIr1Y (M5E0 OKLAHOMA POLICE PENSION R REOREMFNT SYSTEM led 10 Fbcd Years Neisale ScA.M.: i •ahedels bas allhs meas..1dafe, wwh h ens yewln anean Insmmallan lwapdw'. h enweaRahk See independent auditors' report as it relates to required supplementary Information. RSI Page 7 2(115 "IS 9(113 2018 9019 SINS) 2(111 2M ]023 City's Fmpwi of Me net pension 3abilty Jewell 39)941% 1.05908 I.O911% 1.1211% 1.129096 1.1305% 1.1339% 12um 1.&90% City's popaHmwle Awe of the net Minton lbbllly(eww) 3(M9JD) $ 13.139 31.609.743 3 36.230 31537,7391 $ 1121631 $1,34,163 3(5,961,10.81 3(1.001.533) City%comed papal 3241994 32694.629 $3.039.381 38.43.,28 $3.1.50.171 33,67CIM 33.932717 $ 4.398,661 34A75.964 City, WwFWlonale shoe al Me net pe.bn lability (.sell w a percentage&itsm ed papa 11250 %l IA(YS 5296% 25296 1155996) 11.96 %) 34.33% 11381391) (22.33%) Plon Adocl.y net wniHOn as a peittnla0e of the total pensbn 8ebdty (asset] 101531 "M 9350% 9916896 10199% im0 9590% HUM 10234% Neisale ScA.M.: i •ahedels bas allhs meas..1dafe, wwh h ens yewln anean Insmmallan lwapdw'. h enweaRahk See independent auditors' report as it relates to required supplementary Information. RSI Page 7 CITY OF OWASSO, OKLAHOMA SCHEDULE OF CONTRIBUTIONS OKLAHOMA POLICE PENSION 6 RETIREMENT SYSTEM Last 10 Nscal Yvan SfatutolllyrequRed contslbulion Contributions In relation to Me statutorRy required contribution ConlsibWion deScmn (excess) OilVs covered payroll Contnbuliuns as a pmentage of covered payroll Nola. to Sbhedula: Intsmnatim for all pdor"m Is movallable 2015 2016 2017 20111 2019 2020 2021 2022 2023 § 350,280 E 395,119 $ 444,625 $ 448,521 $ 477,895 $ 511,254 $ 558,825 $ 581,877 $ 631,116 350,280 395.119 4".625 448.521 477.895 511254 558.1125 MIA77 631,116 3 $ $ 3 - E 3 - $ - $ $2,694.629 $3,039281 ;3,121,'212 $3,4511171 $3,676.122 $3.932727 34,298,661 $4.475,964 $4 ,854,735 13.00% 13.00% 13DD% 13.00% 13.00% 13.00% 13.00% 13m% 13.00% See independent auditors' report as R relates to required supplementary Information. RSI Page 8 CITY OF OWASSO, OKLAHOMA NOTES TO REQUIRED SUPPLEMENTARY INFORMATION OKLAHOMA POLICE PENSION & RETIREMENT SYSTEM For the fiscal year ended June 30, 2023 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 auditors' report as it relates to required supplementary information. RSI Page 9 cmo9owMS0,0[W O" ImI30rbcal Yeen SeMSotd .On iee011- a . cm I Inlmml cml pn.fil <exhelh.ln. Pecled and acb;olenpanencB Benefl PaSmenb.IncAMnOlelunES ollaa Not cf llm cn 1.1.1 Not alwnpaln lolalpeMm tabiily Told "Mon Pabilly- beanninp Total pardon iaGily- endp(a) Plm adaclay nnlpetlXan: CanNWllom- empbyer NanlnLAlmr -lr c..a WinvMmenl 19, hcN Acne61 paymen,NcWdnp nlundxoi ampbpe coNMOlbni Ntllninbllalha ewmm Nel cXayeln pMnfdueimy net paYlion Plc � 840.2091 not pMtI.n- begforl, Pen Sducl.WMl pmlltam end, Ib) PFOWs net P mdan laaa111a1911y- endln0(a) -lot N.N. to XMd.k: M.,c4adalehmAlhememu4mW dAe. MdA�4 meYeerN uremx. YdannAim Nr W pbr Yem 4 mew8eele Spas "TI m11 Mu 2019. Sato =1 An 10L $ 531b26 5 605112 S 666.982 $ 699.531 $ ]02936 $ 80.]5] $ 011,]11 $ 961,009 $ 959,H7 692330 90,1,999 H74151 1,101.301 V32116 1379.540 1,501.016 1.662055 lw.Iw 65,301 67366 :P'S X1 1651]]1 ,1299 419,861 40.433 (625.160) 1,169,0]]1 (59)A69) (91,50) (363.611) f166Ap21 (4MOI) (5]9.X11) 16524]11 (721,944 2 195217 123.117 1159.110) 95].&59 Lt...513 1 =754 ZM. M 1.50D,375 21A.36t1 2102916 1.953,1" 1,259,185 101910.3,9 11.36896 13.050179 14369,533 16.650.432 18 159,405 -.4.298165 YAIAA 21.131.1)9 $ 11,"8136 $13RS8799 S14,35?= $16.650.432 518150.405 9E 98165 S =QIAM 5 21AS jn S 9,03X4 $ 103171 $ 628631 $ 150.646 $ 195,503 $ 513.455 $ 669.796 $ 609 %55 $ 759.669 $ 056256 235331 MAW MAID 296481 316.2)1 39615 345.959 361 ..A0 1.241..41 353.Ml 126,90 1,695.510 1.15401 1211439 991.ID7 5.06152 03IZ6961 14wm]) 1397.691 ml ) P,%O33) 11689(12) (6raup fsn,mll (652a],1I 021.9 @I OYM 0607) WW2) 09 ) nywl W.263I 139.3911 u12001 145,2301 6905.016 11=2 0129 20953ID 1316519 1,679,625 1.219,931 6,21,167 asal,s]61 10.$79395 12412191 11026/793 13A6),301 15362.610 19.4]9,149 lif 19.969.X 9."4.093 5:.412191 IS 3.426,00 S 1146].39 S 15.5626 S 19.47) ,14] 516]36.772 5 19.969106 $ 9.994.873 5 915150 S 151;9551 S 323616 S "2233 L$ 05,B3d $ 1.499.650 15.4393 _L.&51393 S 0.5606961 $ 25]93q See independent auditors' report as it relates to required supplementary information. RS] Page 10 CHY OF OWASSO, OKLAHOMA SCHEDULE OF PROPORFIONAIE SHARE OF ME MET PENSION HARILOY (A95Ei) OKLAHOMA MUNICIPAL RETIREMENT FUND lad 10 Mscd Yews See independent auditors' report as if relates tg Tequiled supplementary information. RSI Page 11 3015 3016 1011 3018 2019 3030 2031 3031 1030 alt's propoNbnafe shore of the net pemlon podlity (auefl $ 1513,9591 $ 33436 $ 931333 $1,095A01 $1.019,658 51,539393 $2413.313 511.560.6911 $3339911 ayscoveredp Wol 35.653.136 55.955.951 $6,32P363 $1.003.962 $1316302 31513333 $5.131.050 $ 8.526,036 $9,020.065 City, F.poMOnafaehare dlhe net pensb Oabilly lauell as a Pemenfa, of 5s wvered F." 19.09 %I 0554 1151% 15.65% 1116% 2033% 30.95% (1031 %) 35.15% Plan Kd..kq net pomllon m o pcoenlv0e of Hie fafol Pemlw Eab01y 1.x11 106.321L 9915% 9359% 93AM 91.05% 92AM Si 10639% 90.11% xae, la w,mde: M..,a dda b vs afh..uomenldvle, wW.bh wsyevrM vnwn. Inlannv50n fa v0 pdw Ywn Ir unavvlMble See independent auditors' report as if relates tg Tequiled supplementary information. RSI Page 11 C" OF OWAiSO, ORUHOMq SCHEDULE OF CONLIIIBUTONS Lad 10 Fbeal Yvan AcNcrBy deterMned cmbbu0on E Mp erconhlbutbnr EmployeeconMbulbra CmMWibn aeflden, lemenl My'S cc9 d pa9ro0 COMMD.110n6 aL ap.c.t.,e of covered FwW [ 2014 2016 5016 2017 2018 2019 2030 2021 1022 9128 3 639,394 4 686.094 S MI.736 S 792,307 $ 059.129 $ 972389 $1.033.812 51,122877 $1,238.565 31.292947 403,110 M,631 4501846 495.503 543,455 649,114 681.1355 159,669 850.211 813.134 235.624 255,463 DO890 296884 316.94 322.615 30.5.957 363.209 384.288 419.813 $ $ $ $ E $ i S S S $5653,136 $5.955.951 $6.329,343 57.002962 57.316.302 $7,573,133 30,121.0.58 $8526.026 $9.0201865 $9,854,786 1131% IIA9% 11.40% 11.32% 11.7 % 12,94% 1273% 1337% 13.73% 13.12% See independent auditors' 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, 2023 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 5.07 to 8.0% 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 auditors' report as it relates to required supplementary information. RSI Page 13 NOTES TO REQUIRED SUPPLEMENTARY INFORMATION BUDGET COMPARISON SCHEDULE CITY OF OWASSO JUNE 30, 2023 Budgetary Accounting: The annual operating budgets are prepared and presented on a budgetary basis of accounting, which differs from the modified accrual basis. Under the budgetary basis, certain revenues are recognized when received rather than when measurable and available. Per City Ordinance, the City utilizes encumbrance accounting during the year on a limited basis for certain purchase orders and other commitments for the expenditure of funds which are recorded in order to reserve a portion of the applicable appropriation. Encumbrances lapse at year -end; therefore, encumbrances outstanding at year -end are not considered expenditures for budgetary purposes, as the City will provide for supplemental appropriations in the following budget year.. Budget Law: The City prepares its annual operating budget under the provisions of the Municipal Budget Act of 1979 (the "Budget Act "). In accordance with those provisions, the following process is used to adopt the annual budget: a. Prior to June 1, the City manager submits to the City Council a proposed operating budget for the fiscal year commencing the following July 1. b. Public hearings are conducted to obtain citizen comments. At least one public hearing must be held no later than 15 days prior to July 1. c. Subsequent to the public hearings but no later than seven days prior to July 1, the budget is adopted by resolution of the City Council. d. The adopted budget is filed with the Office of State Auditor and Inspector within 30 days of the start of the year. All funds of the City with revenues and expenditures are required to have annual budgets. The legal level of control at which expenditures may not legally exceed appropriations is the department level within a fund. All supplemental appropriations require City Council approval. The City Manager may transfer appropriations between departments without City Council approval. Supplemental appropriations must also be filed with the Office of State Auditor and Inspector. In accordance with Title 60 of the Oklahoma State Statutes, the OPWA, the OPGA, and the OEDA are required to prepare an annual budget and submit a copy to the City as beneficiary. However, there are no further requirements such as form of budget, approval of the budget, or definition of a legal level of control. See independent auditors' report as it relates to required supplementary information. RSI Page 14 BUDGETARY COMPARISON SCHEDULE -- GENERAL FUND CITY OF OWASSO, OKLAHOMA For the fiscal year ended June 30, 2023 Beginning Budgetary Fund Balance Resources (Inflows): TAXES Sales Tax Use Tax Franchise Tax Occupation Tax Budgetary Variance v41h Basis Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative] $ 8.598.175 $ 11,998,879 E 11,998,879 $ 32,338,345 33,838,345 33,788,829 (49,516) 4,600,000 4,600.000 5,168,503 568,503 1,237,696 1,237,696 1,407,883 170,187 36,500 36.500 31,067 (5.4331 TOTALTAXES 38.212541 39,712,541 40,396,282 683,741 INTERGOVERNMENTAL 771,157 792,903 21,746 1811100 Alcohoric beverage tax 112,000 112,000 120,795 8,795 Motor vehicle license 310,000 310,000 278,628 (31,372( Gas excise tax 70.000 70,000 68,602 (1;398) Cigarette/tobacco tax 353,933 353,933 312,622 (41.311) Grant and other intergovernmental revenue 483.071 546,673 573.778 27,105 TOTAL INTERGOVERNMENTAL 1,329,004 1,392.606 1.354,425 f38.1811 CHARGES FOR SERVICES FINES AND FORFEITURES BUILDINGS AND OTHER LICENSE$ AND PERMITS INVESTMENT INCOME MISCELLANEOUS OTHER FINANCING SOURCES Transfers from other funds TOTAL OTHER FINANCING SOURCES Total Resources (Inflows) Amount available for appropriation 778,257 771,157 792,903 21,746 1811100 181,100 397,040 215,940 324,752 324,752 301,897 (22,855) 48,947 48,947 370,083 321,136 85,717 177,573 150,120 (27.453) 21,387,824 21.387.824 21,387,824 21,387,824 22,391,405. 22,391,405 1,003,581 1,003.581 62,348,142 63,996,500 66.154,155 2,157,655 E 70,946.317 $ 75,995,379 $ 78.153,034 $ 2,157,655 (Continued) See independent auditors' 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, 2023 See independent auditors' report as it relates to required supplementary information. RSI Page 16 Budgetary Variance with Basis final Budget Budgeted Amounts Actual Posilive Original Final Amounts (Neaativel Charges to Appropriations (OuHlows): GENERAL GOVERNMENT CITY MANAGER $ 1,025,491 $ 1,028,523 $ 1,013,715 $ 14,808 FINANCE 1,013,178 955,448 876,887 78,561 MUNICIPAL COURT 395,345 507,582 418,431 89,151 INFORMATION TECHNOLOGY 1,974,237 2,933,984 1,254,916 1,679.068 GENERAL GOVERNMENT 517,851 617,851 492,198 125,653 BUILDING MAINTENANCE 594,725 1,033,540 671,145 362,395 HUMAN RESOURCES 550.285 561,341 552,608 8,733 TOTAL GENERAL GOVERNMENT $ 6.071,112 $ 7.638.269 $ 5.279,900 $ 2,358,369 (Continued) See independent auditors' 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, 2023 Charges to Appropriations (OuHlows): PUBLIC SAFETY POLICE SERVICES EMERGENCY COMMUNICATIONS ANIMAL CONTROL FIRE/AMBULANC E SERVICES EMERGENCY MANAGEMENT OPERATIONS TOTAL PUBLIC SAFETY $ 14,460,412 $ 15,013,880 $ 14,559,169 $ 454,711. (Continued) See independent auditors' report as it relates to required supplementary information. RSI Page 17 Budgetary Variance with Basis Final Budget Budgeted Amounts Actual Posifive Original Final Amounts (Neaafive) $ 7,939.691 $ 8,420,422 $ 8,179,474 $ 240,948 272,647 318,205 163,067 155,138 320,642 337,577 317,432 20,145 5,780,000 5,787,652 5,784,152 3,500 147,432 150,024, 115,044 34.980 TOTAL PUBLIC SAFETY $ 14,460,412 $ 15,013,880 $ 14,559,169 $ 454,711. (Continued) See independent auditors' 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. 2023 Budgetary Variance with Basis Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Neaativel Charges to Appropriations (OuUlows): PUBLIC WORKS STREETS $ - $ 2,000,000 $ - $ 2,000,000 ENGINEERING 965,334 995,573 936,423 59,150 CEMETERY 270,587 278,330 68,577 209,753 STORMWATER 626,996 637.870 551,309 86,561 TOTAL PUBLIC WORKS $ 1,862,917 $ 3,911,773 $ 1,556,309 $ 2,355,464 (Continued( See independent auditors' 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, 2023 Budgetary Variance with Basis Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) Charges to Appropriations (Outflows): CULTURE AND RECREATION RECREATION AND CULTURE $ 498,246 $ 612,179 $ 467,030 $ 145,149 COMMUNITY CENTER 565,087 596;553 444,709 151,844 PARK MAINTENANCE 1,008,430 1,084,564 702,764 381,800 HISTORICAL MUSEUM 37.232 38,622 31,440 7,182 TOTAL CULTURE AND RECREATION 2 .1081995 2,331,918 1.645,943 685,975 ECONOMIC DEVELOPMENT 164,500 164,500 145,063 19,437 STRONG NEIGHBORHOODS 15,018 15,018 12,666 2,352 COMMUNITY DEVELOPMENT 1.016507 1,034,403 913,373 121,030 OTHER FINANCING USES Transfers to other funds 36,637,429 37,271,944 37,222,428 49.516 Total Charges to Appropriations 62,336,890 67,381,705 61,334,851 6,046,854 Ending Budgetary Fund Balance $ 8,609,427 $ 8,613,674 $ 16,818,183 $ 8,204,509 (Continued) See independent auditors' 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, 2023 Reconciliation of the General Fund Balance Sheet to the Budgetary Comparison Schedule - General Fund Fund balance - general fund $ 20,660,316 Receivables not recognized for budgetary basis Sales tax receivable (4,241,406) Use tax receivable (694.898) Other tax receivable (133,833) Franchise tax receivable (199,009) Court fines receivable, net of uncollectible (88,250) False alarm fines receivable, net of uncollectible (22,230) Miscellaneous receivable (2,375) Prepaid items (4,000) Plus receipts not recognized as revenue for GAAP 113,692 Plus GAAP expenditure accruals not recognized for budgetary basis 1,430,176 Fund balance - budgetary basis $ 16,818,183 (Concluded) See independent auditors' 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 auditors' 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 30,2023 HALF -PENNY SALES TAX FUND Beginning Budgetary Fund Balance Resources (inflows): SALES TAX MISCELLANEOUS INVESTMENT INCOME OTHER FINANCING SOURCES Transfers from other funds Total Resources (inflows) Amount available for appropriation Charges to Appropriations (Outflows): Public Safety Fire Pafce Total Pubic Safety Public Works Streets Total Charges to Appropriations (Outflows) Ending Budgetary Fund Balance Budgetary Variance with Basis Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) $ 5,117,071 $ 8,366;542 $ 8,366,542 $ 5,421,391 5,421,391 5,664,577 243,186 - 95,931 138,833 42,902 28,499 28,499 245,671 217,172 1,134,515 1,134,515 1.134,515 6,584,405 6,680.336 7,183,596 503,260 11,701,476 15,046,878 15,550,138 503,260 2,390,832 2,453,900 1,959,691 494,209 2.296,548 2,761.639 2,023,486 738,153 4,687,380 5,215,539 3,983,177 1,232362 2.692,329 4,669,790 2,660,641 2009,149 7,379,709 9,885,329 6,643,818 3,241,511 $ 4,321,767 $ 5,161,551 $ 8,906,320 $ 3;744,769 (Continued) See independent auditors' 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, 2023 Reconciliation of the Half -Penny Sales Tax Fund Balance Sheet to the Budgetary Comparison Schedule - Half -Penny Sales Tax Fund Fund balance - Half -Penny Sales Tax Fund Receivables not recognized for budgetary basis Sales Tax Receivable Miscellaneous Receivable Fund balance - budgetary basis 9,629,650 (710,626) (12,704) $ 8,906,320 (Concluded) See independent auditors' report as it relates to required supplementary information. RSI Page 23 OTHER SUPPLEMENTARY INFORMATION NONMAJOR GOVERNMENTAL FUND 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 37o 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 Coronavirus State and Local Fiscal Recovery Funds program, a part of the American Rescue Plan Act. • Opfoid Settlement Fund - Accounts for funds received from a settlement for pharmaceutical opioids which have harmed the City of Owasso and its citizens. 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: • 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 COM61NINO BALANCE SHEEI CP OF OWASSO. OKLAHOMA Jene SB, 1011 TOTAL ASSETS $ 2596,416 S 977.812 y M. S 1,491331 5 15MI $ 2488336 S 0MID 2 $ 2]31.,41 $ IM8811 LLABIMES OEFI RREOINFLOWS U RESOURCES AND FUND EIALW CES LWBGIIIFS Accamis payable Nnb.l . [megercy 0.mNery ft.,m M.N. Ralel Sftmm r hMM Opbld Serybe 911 Care Slnn C9ad Iu hl—...m BMIIII SNB.meM 6361 58687 2333.76 FUw Ned Md IuM Fund WM Suq End Wnd ASSETS Resinded - 9211100 1216 -U - ISMI 2,482259 Cm 11,d 1.165L 6 CaFaM msF a9uivalfnb y 630.216 y 56B.9M $ 7.191 y 627.198 y 9.181 $ IM91A9 y 299.231 8 1,311361 $ 95,116 Nwslmenh 01,9A J,76 54M)9 45133? 6.6.50 LAM", LEM311, 916,IM 69,266 FccaunI,.o abb,W oldlorvancn 1.149,301 - - - - 711, 2M747 - - Ow ft.. .1h. Bmr—N 31.215 TOTAL ASSETS $ 2596,416 S 977.812 y M. S 1,491331 5 15MI $ 2488336 S 0MID 2 $ 2]31.,41 $ IM8811 LLABIMES OEFI RREOINFLOWS U RESOURCES AND FUND EIALW CES LWBGIIIFS Accamis payable y M.604 S 26401 y - 3 - S - i 133 $ 52156 IS - y - Aoc.dpa I.UIMi 618 31.605 - - - 5341 6531 - - Weloolherhnd Umametlrawlwe 9W 3.3?S771 TOTAL LIABILITIES 621E 36.012 6361 58687 2333.76 OEEERREO INFLOWS OF RESOURC95 LYi bde rewnUe -cMBes 6areMrot 769.259 SAND B4IANCES Resinded - 9211100 1216 -U - ISMI 2,482259 Cm 11,d 1.165L 6 LOIR Y 4,611.675 TOTALEUNO BALANCES 1.7MM6 921.103 12,110 IM1.537 15.811 1,831 9 4611.675 ISAB10 . L W BINE9, OFFER RM I NFLOWS OF RESOURCES AND FUND BALANCES $ 2596,476 $ 977.812 3 12407 $ I'M1,517 S 15,631 y 26P1556 $ 4.610.362 $ 2MZM $ 16(881 ICorfnwdl O51 page 2 COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS CRY OF OWASSO. OKLAHOMA June 30. 2023 051 Page 3 CAPITAL PROJECTS FUNDS NanmaJar Ambulance Tax lncnmeMal Park Capital Debt G.vemmenfat Capital Rnancing Development Pm)sel Grant SeMee Fund Fund Fund Fund Fund Fund Talals ASSETS Cash and cash ecuivalenls S 281,039 $ 37.003 $ 148,257 $ - $ 1,242 $ 7,921,481 Investments 203,584 26,804 107.396 - 900 5.738.255 Accounts recelvable, not of allowance 15,364 - - - - IA62.196 Due Tom other governments 24009 64 55,288 TOTAL ASSETS $ 499,9B7 $ 87,816 $ 255,653 $ 2,206 S 15,177,250 LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES LIABILITIES Accounts payable $ - $ - $ - $ - $ - j 137,893 Acvued payroll liabilities - - - - - 44,295 Due to other funds - 86,973 - - - 86.973 Uneomedrevenua 2324.634 TOTAL LIABILITIES 86.973 2593,795 DEFERRED INFLOWS OF RESOURCES Unavailable revenue - charges For services - 769,25B FUND BALANCES Residcted - 843 - - 2206 3,600.249 Cammitfed 499.987 255,653 8.213,948 TOTAL FUND BALANCES 499.987 843 255,653 2,206 11.814.197 TOTAL UABILRES. DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES $ 499,987 S 87,816 $ 255,653 $ $ 2206 S ISIU,250 (Concluded) 051 Page 3 EXPENDITURES, AND CMNG4510 FUND IAIANCE CITY OF OWASSO. OXIAMHOMA, FwSM Mmal Seer ended Imo W. On 051 Page 4 Amb UcrU. Emeryene9 Oeme4ry Fnwpmc9 J..m. NNd 9banealw F9dwe1 OPIUM S.Mea TI C.. .Seen CUM tea MwmO..m OmMS 59MamM Nnd Fund Fund eynd Fund fund Fund Find NM REeENLRS Toad, j - $ - j - y - j - Si 666.511 3 - 3 - S - M1e10OVemme led 6M.122 3gA5$ _ - MMA6B - Chorpwtwae lcer 2417.058 - IRIS - - - 1,751,01 - - FNmantllMalluen - - - - 24 - - - - i1c., and 0emih - - - M23 - - - - I— l nnllacame '4478 21.ID1 286 25]9] 521 MAE 99899 - 1.190 Mhwimdaul 634 - 111 163.1. TOTAL RMNM 3155.48 395.159 z_I05 27AM 711 mj" 1.851333 S.M. 114" EXPENDITURES Cu.t: Ganwdadreminnt - - - - SR]5 Pubta -lely 1.919355 1296406 EcanaMe devebpmeat - - - - - 3MM2 - - - PUbli..h _ - 533.70 Capital oullay 156.00 89983 - 375093 2020.168 TOTAL EXPENDITURES 2.125.402 I.3135,10 5.875 343.512 908.656 2020AM Row aarover Nnder)d alblM1nm 629.006 11.034.0301 2,105 27AM 15.1311 11910.4 912.8]] 161Y0 OMER FINANCING SOURCES FUSES) 0ansfen In - 1351481 Tamfersout - TOTAL OTHER FINANCING SOURCES DJU 1 1359481 NET CHANGE IN FUND BMANCES 6AM16 259251 2105 VAM 15.INI 119.57 91287! - I6.1 FUND BALANCES - BEGINNING Of YFM 11155290 663316 ID295 1053117 4.965 20636)3 3.668.7911 FUNDBAIANCFS- ENDOFYEAR 3 1.70.5896 3 9212034 S 12 AM S 100550 S 15MI S 2182.49 S 1.611.698 S S IMAM (Con18Wdd) 051 Page 4 COMBINING SSANMENS OF REVENUU, EXPENDITURES. AND CHANGES W FUND RAiANCE NONMASOR GOVERNMENTAL FUNDS CITY OF OWASSO, OgAHOMA Im HU wceT r.., n4.d I— M, 2013 REVENM: Taro; Inlmaoa t. Mr,lal Chas an foservkes Mines andnd apes InvadeaondpS. FveslmanllncoFre Mbceon.., EVENDINRES: Cumnl: General,...nnenl Pub6csoleI, Eeomrie tlevebpmenl ub& la CaPltaleulgy TOTAL REVENUES TOTAL ESPENDBURES Revenues ova luntlarl e.p ndlMm OMER FINANCING SOURCES MESI %itleoM Tlom(ps wl TOTAE OTHER FINANCING SOURCES JUSES1 5475 2669 3260.030 MM2 .02)63 251.160 2701 866.621 1775Ld 25]429 2W1 366821 7&L5.313 115,126 537150 66.256 - 291 7.878.0'30 1359.41 - 15363P11 - Ts3643n Isa63Dn mm 115.926 863 66356 - 297 2601535 woo - 211.599 - 1.909 7.212612 3 659.982 5 Ila 5 256.653 j 5 2M6 ; 11.816.197 lCaneluaedl O51 Page 5 CAPITAL PROJECTS FUNDS Nona for AmbWIS.c. TIS.incHar.Nul Falk C.P8.1 VFW Gv.mm.Mel OePRaI No.diq D.v.l.Pm.nl Pml.al Gard S.M.. Tend Fund PuM Nna Fina "d S.IeD ; - i 535.137 3 - 3 - ; 266 3 1.201.924 846,621 - 3.917366 356.920 61157,631 220 _ aim - - 0X3 12a33 2.013 SAQ, - 51 255.211 66.196 ]69)59 5)].150 71:682 &30821 297 V"A21 5475 2669 3260.030 MM2 .02)63 251.160 2701 866.621 1775Ld 25]429 2W1 366821 7&L5.313 115,126 537150 66.256 - 291 7.878.0'30 1359.41 - 15363P11 - Ts3643n Isa63Dn mm 115.926 863 66356 - 297 2601535 woo - 211.599 - 1.909 7.212612 3 659.982 5 Ila 5 256.653 j 5 2M6 ; 11.816.197 lCaneluaedl O51 Page 5 BUDGETARY COMPARISON SCHEDULE -- OTHER GOVERNMENTAL FUNDS CITY OF OWASSO, OKLAHOMA For the fiscal year ended June 30, 2023 AMBULANCE SERVICE FUND Budgetary Variance with Basis Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) Beginning Budgetary Fund Balance $ 535.395 $ 768,723 $ 768,723 $ Resources (InBows); CHARGES FOR SERVICES 1,940,178 1,946,178 2,023,804 77,626 INTERGOVERNMENTAL 222,374 222,374 678,122 455,748 MISCELLANEOUS _ _ 650 65D INVESTMENT INCOME 2,219 2,219 29.378 27,159 Total Resources (inflows) 2,164,771 2,170,771 2.731,954 561.183 Amount available for approprlaflon 2,700,166 2,939,494 3.500,677 561.183 Charges to Appropriations (OuUlows): Pubic Safety 1,933,993 2.720,080 2,114;781 5,299 Ending Budgetary Fund Balance $ 766,173 $ 819.414 $ 1,385,896 $ 566A82 (Continued) OSI Page 6 BUDGETARY COMPARISON SCHEDULE -- OTHER GOVERNMENTAL FUNDS CRY OF OWASSO, OKLAHOMA For the fiscal year ended June 30, 2023 EMERGENCY 911 FUND Beginning Budgetary Fund Balance Resources (Inflows): CHARGES FOR SERVICES INTERGOVERNMENTAL INVESTMENT INCOME OTHER FINANCING SOURCES Transfers from other funds Total Resources (Inflows) Amount available for appropriation Charges to Appropriations (Outflows): Public Safety Ending Budgetary Fund Balance Budgetary Variance with Basis Final Budget Budgeted Amounts Actual Positive Oftnal Final Amounts (Negative) $ 420,522 $ 636.583 $ 636,583 $ 313,400 313,400 - (313,400) - 42,951 359,804 316,853 31180 3,180 21,104 17,924 1,259,084 1.259.084 1,259.084 1.575,664 1,618,615 1.639,992 21,377 1,996,186 2,255,196 2,276,575 21.377 7.582628 1,702.842 1,385,989 316.853 $ 413.558 $ 552356 $ 890,586 $ 338,230 (Continued( OSI Page 7 BUDGETARY COMPARISON SCHEDULE -- OTHER GOVERNMENTAL FUNDS CITY OF OWASSO, OKLAHOMA For the fiscal year ended June 30, 2023 CEMETERY CARE FUND Budgetary Variance Mth Basis Final Budget Budgeted Amounts Actual Positive Orlainal Final Amounts (Negative) Beginning Budgetary Fund Balance $ 7,579 $ 10,295 $ 10,295 8 Resources (Inflows): CHARGES FOR SERVICES 1.050 11050 1,819 769 INVESTMENT INCOME 33 33 296 253 Total Resources (Inflows) 1,083 1,083 2,105 1,022 Amount available for appropriation 8,662 11,378 12,400 1.022 Charges to Appropriations (Outilows): Public Works 11850 1,850 1,850 Ending Budgetary Fund Balance $ 6.812 $ 9.528 $ 12,400 $ 2.872 (Continued( OSI Page 8 BUDGETARY COMPARISON SCHEDULE -- OTHER GOVERNMENTAL FUNDS CITY OF OWASSO, OKLAHOMA For the Fiscal year ended June 30, 2023 EMERGENCY SIREN FUND Budgetary Vadancevrith Basis Final Budget Budgeted Amounts Actual Positive Original Final Amounts INeaalivel Beginning Budgetary Fund Balance $ 1,042,418 $ 1,053.717 $ 1,053.717 $ Resources (Inflows): CHARGES FOR SERVICES 1,950 1.950 2,523 573 INVESTMENT INCOME 187 187 25,297 25,110 Total Resources (inflows) 2,137 2,137 27.820 25,683 Amount available for appropriation 1.044,555 1.055,854 1,081,537 25.683 Charges to Appropriations (Outflows): Public Safety 11010.000 1.020A00 - 1,020.000 Ending Budgetary Fund Balance 8 34,555 $ 35.854 $ 1.081,537 $ 1.045.683 (Continued) OSI Page 9 BUDGETARY COMPARISON SCHEDULE -- OTHER GOVERNMENTAL FUNDS CITY OF OWASSO, OKLAHOMA For the fiscal year ended June 30, 2023 JUVENILE COURT FUND Budgetary Variance with Basis Final Budget Budgeted Amounts Actual Positive Odginal Final Amounts 1Neaativel Beginning Budgetary Fund Balance $ 10,488 $ 20.965 $ 20,965' Resources (Inflows): CHARGES FOR SERVICES 600 600 220 1380( INVESTMENT INCOME 73 73 521 448 Total Resources (Inflows) 673 673 747 68 Amount available for appropriation 11,161 21,638 21.706 68 Charges to Appropriations (Outflows): General Government 10,000 10,000 5,875 4,125 Ending Budgetary Fund Balance $ 1,161 $ 11,638 $ 15,831 $ 4,193 (Conflnued( OSI Page 10 BUDGETARY COMPARISON SCHEDULE -- OTHER GOVERNMENTAL FUNDS CRY OF OWASSO, OKLAHOMA For the fiscal year ended June 30, 2023 HOTEL TAX FUND Budgetary Variance with Basis Final Budget Budgeted Amounts Actual Posilive Original Final Amounts (Nepolivel Beginning Budgetary Fund Balance $ 1,936,995 $ 1.999.809 $ 1.999.809 $ Resources (Inflows): HOTEL TAX 595260 595,260 654.581 59,321 MISCELLANEOUS 2,000 - 146 146 INVESTMENT INCOME 4,589 6.589 56.512 49,923 Total Resources Qnflows) 601.849 601 A49 711.239 109,390 Amount avallable for appropriation 2538.844 2.601,658 2,711.048 109.390 Charges to Appropriations (Outflows): ECONOMIC DEVELOPMENT 98,000 98.000 97.980 20 STRONG NEIGHBORHOOD INITIATIVE 216,528 220,427 205.562 14.865 Total Charges to Appropriations 316,528 318,427 303.542 14.885 Ending Budgetary Fund Balance $ 2.222.316 $ 2,283,231 $ 2,407.806 $ 124275 (Continued) OSI Page 11 BUDGETARY COMPARISON SCHEDULE -- OTHER GOVERNMENTAL FUNDS CRY OF OWASSO, OKLAHOMA For the fiscal year ended June 30. 2023 STORMWATER MANAGEMENT FUND Budgetary Variance with Basis Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) Beglnning Budgetary Fund Balance E 1,267,730 $ 3,165,698 $ 3,465,698 $ Resources pnflows): CHARGES FOR SERVICES 1,6861860 1,686.860 1.739,953 53,093 INVESTMENT INCOME 9,697 9,697 99,899 90.202 Total Resources (Inflows) 1,696,557 1.696,557 1.839,852 143295 Amount ovallabi. for approprlatlon 2,964.287 5.162.255 5.305.550 143,295 Charges to Appropriations (Outflows): Public Works 1,608,997 3.799,185 908,656 2;890,529 Ending Budgetary Fund Balance $ 1,355,290 $ 1,363,070 $ 4,396,894 $ 3.033,824 (Continued) OSI Page 12 BUDGETARY COMPARISON SCHEDULE -- OTHER GOVERNMENTAL FUNDS CRY OF OWASSO, OKLAHOMA For the fiscal year ended June 30,2023 FEDERAL GRANTS FUND Budgetary Variance vrith Basis Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) Beginning Budgetary Fund Balance $ 3,173.096 $ 1,094237 6 1,094,237 $ Resources (Inflows): INTERGOVERNMENTAL 3,107.369 3,107,369 3,257,965 150.596 Amount available for appropriation 6.280,465 4,201,606 4352.202 150,596 Charges to Appropriations (Outilows): Public Works 6.28OA65 6.279,965 2,028,468 4251.497 Ending Budgetary Fund Balance $ - $ 12,078,3591 $ 2.323,734 $ 4,402,093 (Continued) OSI Page 13 BUDGETARY COMPARISON SCHEDULE -- OTHER GOVERNMENTAL FUNDS CITY OF OWASSO, OKLAHOMA For the fiscal year ended June 30, 2023 OPIOID SETTLEMENT FUND Budgetary Variancewi}h Basis Final Budget Budgeted Amounts Actual Positive Original Final Amounts fNegafivel Beginning Budgetary Fund Balance 8 E 8 $ Resources (Inflows); MISCELLANEOUS 164,880 164,880 Amount available for appropriatian 164.880 164MO Charges to Appropriations (OWBows): General Government Ending Budgetary Fund Balance 8 8 $ 164,880 $ 164ABO (Confined) OSI Page 14 BUDGETARY COMPARISON SCHEDULE -- OTHER GOVERNMENTAL FUNDS CRY OF OWASSO, OKLAHOMA For the fiscal year ended June 30, 2023 AMBULANCE CAPITAL FUND Budgetary Variance with Basis Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) Beginning Budgetary Fund Balance $ 378,136 $ 368,568 $ 368.588 $ Resources (Inflows): CHARGES FOR SERVICES 347,679 347,679 357,115 9,436 MISCELLANEOUS _ - - INVESTMENT INCOME 500 500 12,833 12,333 Total Resources (inflows) 348,179 348,179 369,948 21,769 Amount available for appropriation 726,315 716,767 738,536 21,769 Charges to Appropriations (OuHlows): Public Safety 514,883 514,883 253,829 261.054 Ending Budgetary Fund Balance $ 211.432 $ 201,884 $ 484,707 $ 282,823 (Continued) 051 Page 15 BUDGETARY COMPARISON SCHEDULE - -OTHER GOVERNMENTAL FUNDS CITY Of OWASSO, OKLAHOMA For the fiscal year ended June 30, 2023 TAX INCREMENTAL FINANCING FUND Budgetary Variance with Bads Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Neaafive) Beginning Budgetary fund Balance $ 140,121 $ 10.326 $ 10,326 $ Resources (Inflows): SALES TAX 190,000 1901000 191,299 1,299 AD VALOREM TAX 305.000 305,000 350,885 45,885 INVESTMENT INCOME 274 273 2.013 1,740 Total Resources (inflows) 495,274 495,273 544.197 48,924 Amount available for appropdatlon 635 ,395 505,599 554,523 48,924 Charges to Appropriations (Ouelows): Other Uses Transfers Out 635,171 635,171 490.716 144.455 Ending Budgetary Fund Balance $ 224 $ (129.572) $ 63.807 $ 193.379 (Continued( 051 Page 16 BUDGETARY COMPARISON SCHEDULE -- OTHER GOVERNMENTAL FUNDS CITY OF OWASSO, OKLAHOMA For the fiscal year ended June 30, 2023 PARK DEVELOPMENT FUND Budgetary Variance with Basis Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) Beginning Budgetary Fund Balance $ 148,010 $ 211,397 $ 211,397 $ Resources (Inflows} LICENSES 8 PERMITS 80,000 80,000 65,850 (14,150) INVESTMENT INCOME 572 572 5,837 5,265 Total Resources (Inflows) 80,572 80,572 71,687 (8.8851 Amount available for appropriation 228,582 291,969 283084 (8.8851 Charges to Appropriations (Outflows): Copilot Oullay 88,000 88,000 27,431 60,569 Ending Budgetary Fund Balance $ 140,582 $ 203.969 $ 255,653 $ 51,684 (Confinued( OSI Page 17 BUDGETARY COMPARISON SCHEDULE •• OTHER CITY OF OWASSO, OKLAHOMA For the fiscal year ended June 30, 2023 CAPITAL PROJECT GRANT FUND Beginning Budgetary Fund Balance Resources (Inflows): INTERGOVERNMENTAL Amount available for appropriation Charges to Appropriations (OuHlows): Capital Outlay Ending Budgetary Fund Balance Budgetary Variance with Basis Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) 150.000 1,006.516 846,621 1159,8951 150,00D 1.006.516 846.621 (159,8951 150.000 1.006,516 846.621 159.895 S $ $ S (Continued) OSI Page 18 BUDGETARY CITY OF OWASSO, OKLAHOMA -- OTHER GOVERNMENTAL FUNDS For the fiscal year ended June 30, 2023 DEBT SERVICE FUND Beginning Budgetary Fund Balance Resources (Inflows): AD VALOREM TAXES INTEREST Total Resources anflows) Amount available for appropriation Charges to Appropflaflons (Outflows): Other Uses Transfers Out Ending Budgetary Fund Balance Budgetary Variance with Basis Hnal Budget Budgeted Amounts Actual Positive Original final Amounts (Neactive) $ 978 $ 1IB30 $ 1.830 $ 200 200 261 61 51 51 200 2D0 312 112 1.178 2,030 2,142 112 20D 200 20D $ 978 $ 1,830 $ 2142 $ 312 (Concluded( OSI Page 19 MAJOR 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 20 BUDGETARY COMPARISON SCHEDULE -- MAJOR CAPITAL PROJECT FUNDS CITY OF OWASSO, OKLAHOMA For the fiscal year ended June 30, 2023 VISION RECAPTURE TAX FUND Budgetary Variance with Basis Final Budget Budgeted Amounts Actual Positive Orialnal Final Amounts (Negative) Beginning Budgetary Fund Balance $ 17.662 $ 15,471,459 $ 15. 471,459 $ Resources (inflows): VISION RECAPTURE SALES TAX 5,963,530 5.963.530 6.230,980 267,450 INVESTMENT INCOME 45,149 45.149 452,935 407,786 OTHER FINANCING SOURCES Transfers from other funds 3,000.000 3,000.000 (31000.0001 Total Resources (inflows) 9,OD8,679 9.008,679 6.683.915 (2.324,7641 Amount available for appropriation 9.026.341 24.480.138 22,155.374 12324,7641 Charges to Appropriations (Outflows): Capital Outlay 8.900.000 24,371.458 2.836.4D0 21,535,058 Ending Budgetary Fund Balance $ 126,341 $ 1D8.680 $ 19.318.974 $ 19210.294 (Continued) OSI Page 21 BUDGETARY COMPARISON SCHEDULE -- VISION RECAPTURE FUND -- Continued CITY OF OWASSO, OKLAHOMA For the fiscal year ended June 30, 2023 Reconciliation of the Vision Recapture Fund Balance Sheet to the Budgetary Comparison Schedule - Vision Recapture Fund Fund balance - vision recapture fund $ 19,657,534 Receivables not recognized for budgetary basis Taxes Receivable (781,687) Plus payables not recognized as expense for budgetary basis 443,127 Fund balance - budgetary basis $ 19,318,974 (Concluded) OSI Page 22 BUDGETARY COMPARISON SCHEDULE -- MAJOR CAPITAL PROJECT FUNDS CITY OF OWASSO, OKLAHOMA For the fiscal year ended June 30, 2023 CAPITAL IMPROVEMENT FUND Budgetary Vatlance with Basis Final Budget Budgeted Amounts Actual Podtive Original Final Amounts (Negative) Beginning Budgetary Fund Balance $ 2,066,336 $ 11.085.685 $ 11.085,685 $ Resources (Inflows); CHARGES FOR SERVICES - - 5,770 5,770 INVESTMENT INCOME 29,721 29,727 334,258 304,537 MISCELLANEOUS - - (8,792) (8,792) OTHER FINANCING SOURCES - Transfers from other funds 7,678,021 11.674,138 9.539,624 12134.5141 Total Resources (inflows) 7,707,742 11,703,859 9.870.860 (1,832,9991 Amount available for appropriation 9.774.078 22,789,544 20.956,545 (1,832,9991 Charges to Appropriations (Outflows): Capital Outlay 9,760,816 22,766,269 10.804.049 11.962,220 Ending Budgetary Fund Balance $ 13262 $ 23,275 $ 10,152.496 $ 10.129,221 (Continued) OSI Page 23 BUDGETARY COMPARISON SCHEDULE -- CAPITAL IMPROVEMENT FUND -- Confined CITY OF OWASSO, OKLAHOMA For the fiscal year ended June 30, 2023 Reconciliation of the Capital Improvement Fund Balance Sheet to the Budgetary Comparison Schedule - Capital Improvement Fund Fund balance -capital improvement fund $ 11,177,981 Receivables not recognized for budgetary basis Taxes receivable (807,284) Plus payables not recognized as expense for budgetary basis 56,799 Less receipts not recognized as revenue for budgetary basis (275,000) Fund balance - budgetary basis $ 10,152,496 (Concluded) OSI Page 24 INTERNAL SERVICE FUN Internal Service Funds • Vehicle Maintenance Fund - Accounts for the financing of goods and services provided by one department to other departments of the City. The vehicle maintenance department 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. 051 Page 25 COMBINING BALANCE SHEET INTERNAL SERVICE FUNDS CITY OF OWASSO, OKLAHOMA June 30, 2023 ASSETS CURRENTASSEIS Cash and cash equivalents Investments Otherrecelvables Repaid Items TOTAL CURRENT ASSETS NONCURRENT ASSETS Olher depreciable capital assets, net TOTALASSETS $ 136.543 $ INTERNAL SERVICE FUNDS 340.813 $ 1,943,236 Vehicle Workers General Healthcare Internal Maintenance Comp Lldbliy Services Service Funds Fund Fund Fund Fund Totals $ 136.543 $ 1.062,410 $ 340.813 $ 1,943,236 $ 3,483.002 98,912 769,606 246,884 lA07,671 2,523,073 - - - 11060 1,060 6.618 - 421,000 38,000 38,000 235A55 1,832,016 587,697 3,389,967 6.D45.135 186353 - 186,353 421,808 1J132.016 587.697 3,389,967 6.231.488 DEFERRED OUTFLOWS OF RESOURCES Deferred outflows -OPEB 1,165 - - 1.165 Deferred outflows- pension 85,391 3,147 - - 88,538 TOTAL DEFERRED OUTFLOWS OF RE SOURCES 86,556 3,147 89.703 LIABILITIES AND NET POSITION CURRENT LIABILITIES Accounts payable Accrued payroll liabilities Unearned revenue Current portion of noncurrent IlabiliHes: SBRA obligation Incurred but not reported claims Accrued compensated absences TOTAL CURRENT UABILITIES NONCURRENT UABILITIES Net pension liability Total OPEB Bobli ty SBITA obligation Incurred but not reported claims Accrued compensated absences TOTAL NONCURRENT LIABIUTIES TOTAL LIABIUTIES 45,185 10,682 16,414 64,049 136.330 12,692 81179 - - 20,871 - - - 5.701 5,701 6.618 - - 6.618 - 421,000 - 237,356 658,356 6266 TOTAL NET POSITION $ 313.735 $ 1,390,343 $ 571,283 $ 2,B35,817 6,266 70.761 439.861 16.414 307,106 834,142 61.359 5,270 - - 66;629 22,114 - - - 22.114 31990 - - - 3.990 - - - 247,044 247,044 7,065 7,065 94.528 5,270 247.044 346,842 165.289 445,131 16,414 554,150 1,180,984 DEFERRED INFLOWS OF RESOURCES Deferred Inflows -OPE8 8,194 - - - 8,194 Deferred Inflows - pension 21,146. 13111 - 20.835 TOTAL DEFERRED INFLOWS OF RESOURCES 29,340 (3111 29,029 NEI POSITION Net Investment in capital assets 175,745 - - - 175.745 Unrestricted 137,990 1,390,343 571,283 2,835.817 4.935,433 TOTAL NET POSITION $ 313.735 $ 1,390,343 $ 571,283 $ 2,B35,817 $ 5,111,178 OSI Page 26 COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN NET POSITION INTERNAL SERVICE FUNDS CRY OF OWASSO, OKLAHOMA For the III year ended June 30, 2023 O51 Page 27 INTERNAL SERVICE FUNDS Vehicle Workers' General Healthcare Internal Maintenance Comp Liability Services Service Funds Fund Fund Fund Fund Totals OPERATING REVENUES Charges for services: Internal service charges for services $ 819,769 $ 601 AM $ 416,871 $ 6,965,043 $ 8,803,283 Other 246 12 258 TOTAL OPERATING REVENUES 820,015 601.600 416.871 6. 965.055 8.603.541 OPERATING EXPENSES Administration - 222A26 221,815 1,257,105 1,701,346 Claims expense - 20,566 54,262 5;878,402 5,953,230 Vehicle maintenance 763,966 - - - 763.966 Depredation and amortization 33,647 - - 33.647 TOTAL OPERATING EXPENSES 797.613 242,992 276.077 7,135,507 8.452.109 OPERATING INCOME (LOSS) 22A02 358:608 140.794 1170.4521 351.352 NONOPERATING REVENUES (EXPENSES) Investment Income 31660 41,122 13.615 82,029 140,426 Interest egsense (5911 - 15911 TOTAL NONOPERATING REVENUES (EXPENSES) 3.069 41.122 13.615 82.029 139.835 CHANGE IN NET POSITION 25.471 399.730 154.409 188.4231 491,187 NET POSITION - BEGINNING 288,264 990,613 416.874 2,924.240 4,619.991 NET POSITION - ENDING $ 313,735 $ T,390,343 $ 571,263 $ 2.835417 $ 5,111.178 O51 Page 27 COMBINING STATEMENT OF CASH FLOWS -- INTERNAL SERVICE FUNDS CITY OF OWASSO, OKLAHOMA Fes the B4ea1 yeas ended Jul. 30, 2023 O51 Page 28 IMERNAL SERVICE FUNDS Vehicle Workers' Geneml Healthcare Internal Maintenance Comp Liability Services Sam. Funds Fund Fund Fund Fund Toth CASH FLOWS FROM OPERATING ACTIVITIES Receipts ft.. customers $ 857A64 $ 601,600 $ 416,871 $ 6,967.861 $ 8,843,396 Payments to suppkers 1274,485) (249,904) (278.5241 (7.059.500) (7,862413) Payments to employees (456,104) (18.579) - - (474,6831 Olherieceiph 9,869 12 91881 NET CASH FROM OPERATING ACTIVITIES 136.344 333.117 138.347 191.6271 516,181 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition and construction of capital assets (14,649) - - - (14,649) Payments on SBITA obk0allon 169371 16.9371 NET CASH FROM CAPITAL AND RELATE] FINANCING ACTIMBES (21.5861 121,5861 CASH FLOWS FROM INVESTING ACTIVITIES Purchase of investments (68,423) (389,906) (133.390) (5323761 (1,124,100) Investment income received 3.660 41.)22 13.615 82029 140.426 NET CASH FROM INVESTING ACTIVITIES (64.7681 1348.7841 1119,7751 1450.3471 (9836741 NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 49.990 (15.667) 18,572 (541.974) (489.079) BALANCES- BEGINNING OF YEAR 86.553 1.078,077 322.241 2.485.210 3.972081 BALANCES -END OF YEAR $ 136,5,0 $ 1.062.410 $ 340.813 $ 1.943,236 $ 1483,002 (Cantinuedl O51 Page 28 STATEMENT OF CASH FLOWS -- INTERNAL SERVICE FUNDS - Continued CITY OF OWASSO, OKLAHOMA Perlhe Ncal year ended June 30, 2023 OSI Page 29 INTERNAL SERVICE FUNDS Vehicle Workere General Heath. Internal Maintenance Comp Uabifty Services Service Funds Fund Fund Fund Fund Totok RECONCIUATION OF OPERATING INCOME 11ASS) TO NET CASH FROM OPERATING ACTIVIDES Operating Income (foul $ 22402 E 358.608 $ 140,794 $ (I 70A52) j 351,352 Adjustments to reconcile operating Income (low) to net cash from operaling actiNtiec Depreciation and amortization expense 33,667 - - - 33,647 Change in assets, deferred outfiovo of resources, labial., and deferred info of resources: Accounts receivable, at 37.295 - - - 37,295 Other receivables - - - 2,818 2,818 Due from other funds 9.623 - - - 9.623 Account, payable 33,320 11.6681 (2447) 110,]00) I8AM Accued payroll fabilitfes 6 8,179 - - 8,185 Unearned revenue - - - 5.507 5,507 Pension 3,552 18 - - 3,570 OPEB 486 - - - 486 Incurred but not reported claims - (32000) - 81,200 49,2DD Accrued compensated absences 13.98]7 13.9811 ME CASH FROM OPERATING ACTIVITIES 5 136.344 $ 333.117 E 138.347 $ 191.627 1 $ 516.161 (Concluded) OSI Page 29 BUDGETARY CITY OF OWASSO, OKLAHOMA -- OTHER GOVERNMENTAL FUNDS For the fiscal year ended June 30, 2023 VEHICLE MAINTENANCE FUND Beginning Budgetary Fund Balance Resources (Inflows): CHARGES FOR SERVICES INVESTMENT INCOME MISCELLANEOUS INCOME Total Resources (Inflows) Amount available for appropriation Charges to Appropriations (OUtBows): Vehicle Maintenance Ending Budgetary Fund Balance Budgetary Variance with Basis Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) $ 112431 $ 102,106 $ 102,106 $ 743,246 743,246 854.525 111.279 5DO 5DU 3,660 3,160 2,785 2,785 743,746 743,746 860,970 117.224 856,177 845,852 963.076 117,224 769,942 785.499 804,497 (18.9981 $ 86,235 $ 60,353 $ 158,579 $ 98,226 1Conflnued) OSI Page 30 BUDGETARY COMPARISON SCHEDULE -- OTHER CRY OF OWASSO, OKLAHOMA For the fiscal year ended June 30, 2023 SELF INSURANCE FUNDS Beginning Budgetary Fund Balance Resources (Inflows): CHARGES FOR SERVICES INVESTMENT INCOME MISCELLANEOUS INCOME OTHER FINANCING SOURCES Transfers from other funds Total Resources (inflows) Amount available for appropriation Budgetary Variance with Basis Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negafive) $ 4,162,098 $ 5.187,241 $ 5,187,241 $ - 8,133,870 8,133,870 7,966.820 (167.050) 17,720 17,720 136,766 119,046 30,000 30.000 17.735 112265) 2D0 200 (2001 8,181,790 8,181,790 8,121.321 160.4691 12.343.888 13.369,031 13308,562 (60,4691 Charges to Appropriations (Outflows): Self Insurance 8,054,320 8.054.320 7,605359 448,961 Ending Budgetary Fund Balance $ 4,289,568 $ 5,314,711 $ 5,703,203 $ 38BA92 (Concluded) 051 Page 37 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 S - FINANCIAL TRENDS Page 2 CITY OF OWASSO, OKLAHOMA NET POSITION BY COMPONENT (LAST TEN YEARS) (accrual basis of accounting) (amounts expressed In thousands) 2014 2015- 2016 2U17.. 2019 2019 2020 2021 20]1 2023 Governmental acXWHas Net investment in capital assets $ 94.166 $ 93,777 $ )04.330 $ 111.988 $ 128,471 $ 148.939 $ 162,940 $ 169.642 $ 169,811 $ 180,141 Restricted 4,396 8,464 10,690 15,050 16,434 22.866 22,256 25,583 39.907 45,169 Unrestricted 5994 18.7001 15,533 1 16.6071 149291 m 2.233 5.239 11.888 17.692 Net pasftion 104.556 3 93541 109,487 $ 120.431 $ 140.076 $ 171.827 $ 187,429 $ =464 $ 221.606 $ 243.001 Unrestricted as a Percent of Revenues 15.3% -28.5% -12.7% -15.7% -9.2% 0.0% 4.2% 9.6% 198% 26.7% 9uslnmatype actielu., Net investment in capital assels $ 38.518 $ 41,943 $ 44,329 $ 46.728 $ 40.053 $ 25.672 $ 50943 $ 52,758 $ 53.640 $ 54.524 Restricted 2.942 2,318 2,093 1,565 1.309 899 1,097 1,387 1.715 1,791 UnresNCted 11171 11.2401 11.9921 12.9041 (1.0371 1.311 123.3241 119.6381 114.2901 19.8731 Net position $ 41.343 $ 43.021 $ 44.430 $ 45.389 $ 40.324 $ 27.882 $ 28.712 $ 34,507 $ 41.065 $ 46.442 Unrestricted as a Percent of Revenues -0.6% -7.8% -11.87 -17.27. -9.6% 413% - 127.7% -67.6% -60.6% -41.8% Pdmary geywren.nl Net investment in capital assets $ 132,684 $ 135,720 $ 148,659 $ 158,7)6 $ 168,524 $ 174,610 $ 187.486 $ 195,794 $ 198,556 $ 210.256 Restricted 7,336 10,782 12,783 16.615 17.742 23.765 23.353 26,970 41,622 46,958 Unrestricted 5.877 19.9401 17.5251 19.5111 15.8661 1.334 5302 12.207 22.494 32.229 Net position Ib 45.899 $ 136.562 $ 153.917 $ 165,820 $ 180400 $ 199,709 $ 216,141 234.971 $ 262.672 $ 289,442 Unrestricted as a Percent of Revenues 9.9% -21.4% -12.4% -16.1% -9.3% 2.0% 7.3% 15.9% 25.9% 35.9% Source: Respective Mool years' Financial Sialemenls - Slaleareof al Net Pe fflon The lave) offokl unrestricted nefpeeften 0 an hMkation ofthe am ml dunexpmded and available resources the Cllyhos ofa polnf In Nme to fund memendes.ahodla0s, orolherunexpecled needs. Ympinmenletie r of GASP 6e, Acceunlingand nnanehol Reporting For Pendens, resulledhe the recording eta $12.9 m011an net pension IkblNlyle the Govema entalac"es statements In N 2015. Pdosyear have net been antlered. "sauesereniafon of GASP 75. Accounting and financial RepwXnif Far POSlemploymeat Bereft, ..tied In a 2017 pdw peered adfuslmerf Increasing the net OPM Ilabgiry by SOS Mitten In Me Gavemmenfal ocNWNes, and by $0.1 mNllon M Ihn 9udnea -typn xNVINes. year pd. to WE 2017 retreaded S - FINANCIAL TRENDS Page 2 CITY OF OWASSO, OKLAHOMA CHANGES IN NET POSITION (LAST TEN YEARS) (accrual basis of accounting) (amounts expressed in thousands) S - FINANCIAL TRENDS Page 3 5414 2414 1414 2412 24]4 Fil»nms Governmental Acllvilles: General government j 5,019 j 5.129 j 4,192 j 4.636 j 4.726 PubBcsafety 14.690 13,901 TSA92 17,430 19,473 Community development •" - - - 858 818 Recreation and cu8um 1.185 11129 1,250 1.494 1.560 Economic development E35 328 324 367 426 PubBCwork S.Fl 5101 6.292 6.329 5.795 Total governmental activities expenses 2 7.250 26.167 27.550 31.114 32,798 Business-type adWilles: Water 6.760 6.382 7,470 7.370 7;403 Wastewater 4,509 4.954 5.088 5,247 5,174 Sanitation 1,613 1 541 1.588 1.697 11695 Reryclecenter 220 167 115 200 190 Economlodevelopmeni - - - - - Golf course 1.229 1.143 1.283 1.447 1.453 Total business-type activities expenses 14,631 14,187 15.541 15.961 15915 Total primary government expenses $ 41.881 $ 40.354 j 43.094 ; 47,075 S 48,713 Roymm revenue Governmental activities: Charges forservices General government $ 970 j 627 j 655 j 514 $ 946 Pubic safety 2.962 2.667 2.885 3.208 2816 Community development •'• - - 19 47 50 Recreallon and cu8ure 111 106 112 136 139 Economic development 9 10 it 18 18 Publicwor9s•• 811 795 870 1.092 1,233 operating grants and contributions 1,754 1,753 31416 509 2884 Capital grants and contributions 12890 1 d04 6,889 4.741 2.337 Total govemmental activities program revenues 19.467 7.000 14,887 10,265 10.423 Business -type actiAlles: Chages Iarsevices Water 5.384 San 5.763 6.260 6.591 Waslewafer 3,720 3.750 4,402 4323 4,578 Sanitaton 1,789 1.823 11910 2,003 2,127 Recycle center 35 29 23 39 36 Golf course 744 726 697 740 761 Capital grants and contnbutons 3,787 526 1.101 1.346 427 Total business type activities program revenues 15.459 12.076 13,496 14.711 14.520 Total primary government program revenues $ 34.926 $ 19.076 j 28.383 $ 24.976 j 24.943 Net(expenm) mvenue: Govemmenfal activities j 17.7831 $ (19,167) j (12.663) $ (20.8491 $ (22375) Buslness-type adlvlll. E28 12.1111 12.0481 0.25r) 11.3951 Total pdmary government net (expenses) revertue j 16,9551 S 121 .2781 $ 114,7111 $ 122.0991 j 12317701 General Revenues and OBSer Changes In Net Position Govemmental activities Taxes Sales tares $ 21.254 j 23,841 $ 28,421 j 30,249 j 33.752 Use taxes 800 968 1,128 1,246 1.650 TmncNse and public service tares 11235 1,389 1,202 1,176 1.193 Cigarette / tobacco tax•' 247 276 n/a n/a n/a Hotel taxes 386 412 402 3152 409 Alcoholic beverage tax •• 54 57 n/o n/a n/a &9111ams•• 216 210 rid n/o n/a InlesTovemmental" Na n/a 601 669 722 Investment Income 34 w M 35 161 Mhcelloneous•• 130 99 259 200 -269 Transfesanlemalactivity f4.624 1 (3.7771 MCPS Mimi 3.854 Total govemmental activities 19.732 23.505 20.609 31.793 42070 Buslness�type activltes Inveslmeniincome 17 22 22 45 194 Tmmfen,intemal ociNlty, 462,4 3,777 3,434 2164 f3.8641 Total business -type activities 4.611 3.799 3,456 2219 13.6701 Total ptimary govemment S 24.373 j 27,304 3 321065 $ 34.002 3 38.350 Changes In Net Position Govemmenfol activities j 11.949 $ 4,338 j 15.946 j 10.944 ti 19,645 Business-type activities 5.469 1.688 I." 959 15.0651 Total pdmarygovemment $ 17,418 $ 6.026 $ 17.35, E 11.903 $ 14,580 ICanlinued) Sourew Respective Fiscal Years' Plnandaf Statements - Statement ofAcNvfNm Cedain balances ham Me statements ware combined for aompam8ve purposes •"Pdar to 2016 combined With Generat Govemmenf S - FINANCIAL TRENDS Page 3 CITY OF OWASSO, OKLAHOMA CHANGES IN NET POSITION - continued (LAST TEN YEARS) (accrual basis of accounting) (amounts expressed in thousands) S - FINANCIAL TRENDS Page 4 24LY 2424 5431 5432 2974 8 games Govemmen lal AcNWtles: General government $ 4.415 $ 4,785 $ 4,834 $ 91006 $ 6,146 Public safety 17.527 22805 24,915 21,840 26,011 Community development ••' 7" 752 842 842 903 Recreation and culture 1,617 1,882 1,901 1,965 2.198 Eaonomlcdevebpment 456 476 471 449 461 Public works 7,199 7.645 8,482 8.105 8.738 Total governmental activities expenses 31.958 38.345 41.145 4Z=r 44.79 Business -type activities: Water 6.909 7A9 7,106 7M 7x70 Wastewater 5,338 5,533 5.416 5,646 5.8B9 Sonita4on 1,790 11938 1,921 1.889 2127 Recycle center IN 233 293 256 358 Econombdevebpmsnt - 308 359 473 403 Gall course 1.399 11517 1.527 1.684 2.109 Total business -type oclivitles expenses 15.618 17,138 14622 17.030 18,256 Total p4mary government expenses S 47.96 $ 55.753 $ 9,067 S 59.237 $ 63.013 P.O.. Revenue GovernmentalacRARes: Charges for services General government $ 618 $ 603 $ 593 $ 596 $ 758 Pubticsalety 3,058 2,903 2561 2655 2,712 Community development "` 55 38 330 451 301 Recreation and culture 94 93 103 127 97 Economic devebpment 19 16 14 12 12 Public works" 1.433 1,620 1,892 1.835 1,982 Operating grants and conbbutions 2947 3,587 6.196 6.700 6,696 Capital grants and conldbutlons 2308 2915 799 2,965 528 Total governmental activities pragmm revenues 10.592 11,7)5 12455 15,341 13.116 Business -type activities: Charges IorseMces Water 6,427 6.782 7.888 8,062 81358 Wastewater 4.776 4,946 5,775 51810 6289 Sanitation 2,01 2,356 2.577 2558 2,667 Recycle caner 19 17 33 69 62 Golf course 733 637 801 968 1,247 Capital grants and contributions 504 2,107 405 1.231 1.094 Total business-type activities program revenues 1 5040 17.045 17.479 111698 19.717 Total primary government program revenues 3 25.632 $ 28.82(1 $ 29,967 $ 34.039 $ 32,933 Net (expeme) revenue: Governmental activities $ (21.366) $ 126,570) $ 128,957) $ 126,865) $ (31,641) Budnesx-type activities 15781 13931 857 1.667 1.461 Total primary government net (expenses) revenue $ (21.9 "1 $ 126,90 $ 128.10) 1 $ 125.1981 3 130.1801 Genard Revenues and other Changes W Net Position Governmental activltles Taxes Sales tortes $ 34,973 $ 36,600 $ 39,587 It 43,553 $ 45,781 Use taxes 2423 3,175 4.239 4,581 5,280 rrcnchim and public service lams 1,198 1,179 1,110 1,285 1,506 Cigarette/ tobacco tax" run n/a n/a n/a N. Hotel taxes 472 430 467 636 667 Alcoholic beverage tax" n/a n/a NO n/a n/a 1-911 taxes" n/a n/a N. n/a n/a Intergovernmental•' 6" 721 772 870 752 Investment Income 510 46B 174 35 1,799 h4sce5aneous•- 662 467 547 1,894 664 Tramfers-InlernalactlNty, 12183 f8701 14,9031 14,8471 13.4131 Total governmental activities 53.117 42,172 41.993 48.007 906 Business-type activities Investment Income 319 353 34 44 502 Tmmfers4ntemaloctivity, (121831 870 41903 4,847 3,413 Total business -type activities 1118641 1.223 4.937 4.891 3.915 Total primary gavemmenl E 41.29 $ 43395 E 46.930 It 52.898 $ 56.951 Changes In Net Padtion Governmental activities $ 31.751 $ 15.602 $ 13036 $ 21.142 $ 21.394 Business4ype adiAlis (12."21 830 5,794 6.558 5.376 Total primary government S 19.309 $ 16.432 $ 18.830 $ 27.M $ 26.770 (concluded) source: Respective Fiscal Yeari Finandal statemenh- Rdament of AcIfOlfes "Certain balances Sam the sldemenh were combined far comparative purpasv ••'Prior to 2016 combined with Genets Govemment S - FINANCIAL TRENDS Page 4 CITY OF OWASSO, OKLAHOMA CHANGES IN FUND BALANCE OF GOVERNMENTAL FUNDS (LAST TEN YEARS) (modified accrual basis of accounting) (amounts expressed In thousands) Other Financing Sources (Uses) Leases (as lessee( - - - - - SBITA - - - - - Transfers in 17,150 20,056 22,882 25,177 30,792 Transfers out (21,770) (23,8331 (26,3161 127,3401 126,9551 Total Other Financing Sources (Uses) (4,620) 13,7771 (3,4341 (2,1631 3.837 Net Change In Fund Balances 2014 2015 2016 2077 2018 Revenues 10,575 11,479 15,531 18,444 23,213 Taxes $ 23,157 $ 26,046 $ 31,154 $ 33,052 $ 37,005 Intergovernmental 2,959 1,886 2,023 4,307 5,097 Charges for services 3,127 3,140 3,126 3,251 3,948 Fines and forfeitures 637 717 773 603 461 Licenses and permits 287 323 474 271 281 Investment income 30 20 21 25 145 Miscellaneous 137 105 259 232 773 Total Governmental Revenue 30,334 32,237 37,830 41,741 47,710 Expenditures Current: General government 4;603 4,805 3,933 4,027 4,150 Public safety 13;422 12,546 13,978 16,392 18,312 Community development - - 701 825 795 Recreation and culture 701 764 839 1,052 1,103 Economic development 858 328 325 357 420 Public works" 1,265 1,698 1,904 2,397 1,470 Capital outlay 3,961 4,267 9,803 9,759 22,121 Total Governmental Expenditures 24,810 24,408 31,483 34,809 48,371 Excess (deficiency( of revenues over expenditures 5,524 7,829 6,347 6,932 (6611 Other Financing Sources (Uses) Leases (as lessee( - - - - - SBITA - - - - - Transfers in 17,150 20,056 22,882 25,177 30,792 Transfers out (21,770) (23,8331 (26,3161 127,3401 126,9551 Total Other Financing Sources (Uses) (4,620) 13,7771 (3,4341 (2,1631 3.837 Net Change In Fund Balances 904 4,052 2,913 4,769 3,176 Fund Balance - Beginning of Year 10,575 11,479 15,531 18,444 23,213 Fund Balance - End of Year 11,479 15,537 18,444 23,213 26,389 Debt Service as a percentage of noncapitalexpenditures 0.00% 000 0.00% 0.00% "0% (Continued( Source: Respective Fiscal Years' Financial Statements - Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds • Prior to 2016 combined with General Government •• Certain balances from the statements were combined for comparative purposes S - FINANCIAL TRENDS Page 5 CITY OF OWASSO, OKLAHOMA CHANGES IN FUND BALANCE OF GOVERNMENTAL FUNDS - continued (LAST TEN YEARS) (modified accrual basis of accounting) (amounts expressed In thousands) 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 Total Governmental Expenditures Excess (deficiency) of revenues over expenditures Other Financing Sources (Uses) Leases (as lessee) SBITA Transfers in Transfers out Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balance - Beginning of Year Fund Balance - End of Year Debt Service as a percentage of 2019 2020 2021 2022 2023 $ 39,147 $ 41,724 $ 45,685 $ 50,427 $ 53,579 5,816 4,436 7,142 7,176 7,535 4,022 4,170 4,672 5,207 4,948 335 298 234 201 418 216 286 440 529 400 479 431 154 15 1,658 847 209 291 1,670 358 50,862 51,554 58,618 65,225 68,896 3,761 4,121 4,159 4,674 4,851 18,635 19,934 20,825 22,142 23,666 724 713 824 879 909 1,091 1,269 1,305 1,493 1,557 451 455 468 484 461 2,749 2,935 3,525 3,309 3,637 27,091 18,923 15.167 10,063 20,680 54,502 48,350 46,273 43,044 55,761 13,6401 3,204 12,345 22,181 13,135 158 732 - - - - 285 40,132 28,633 28,637 34,733 34,310 (27,949) (29,5031 (33,540) (39,5801 (37,7241 12,183 (8701 14,9031 14,6891 (2,3971 8,543 2,334 7,442 17,492 10,738 26,389 34,932 37,266 44,708 62,200 $ 34,932 $ 37,266 44,708 62,200 72,938 noncapital expenditures am QQQ$ 2M QQQ9 0.00% (Concluded) Source: Respective Fiscal Years' Financial Statements - Statemenf of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds • Prior to 2016 combined with General Government •• Certain balances from the statements were combined for comparative purposes S -FINANCIAL TRENDS Page 6 Source: RespecXVe Iboal Years' Financial SFalemenb - Xalance Sheet G.vemmenMl funds •Prior to IY2617. Hds.mound sms seflecfed In •OMee °Pit" 172023, Mb amooN was reflected In •OMer 5 - FINANCIAL TRENDS Page 7 CITY OF OWASSO, OKLAHOMA FUND BALANCE OF GOVERNMENTAL FUNDS (LAST TEN YEARS) (modified accrual basis of accounting) (amounts expressed In thousands) 2014 2015 2016 2017 2018 2019 2020 2021 2021 2043 General Fund Nampendable $ - $ - $ 1.542 $ 911 $ 1,074 $ 1.429 $ 1,124 $ - $ - $ 4 Reshicfed to.. Publlcsafely - 9 10 - - - 71 34 53 43 Recreation and culture •' - - - - - - - - - Se Olher - 4 - 64 45 72 a 12 71 - Assigned 412 641 322 295 322 1.006 1.396 1071 Sol 2406 Unassigned 4378 4.390 3957 4.406 5.351 6,34 8,098 14.074 14.757 18.150 Total General Fund 4.590 5.041 5,731 5676 6,792 8951 10,697 15,491 15.682 20.661 Other GovemmeMal Funds Nonspendable - - - - - 458 455 - 293 - Reshicted for. General govemmanl - - - _ _ _ _ _ 165 Publicsalef9 270 839 1.540 2070 3.049 4.164 5,357 51333 7,029 7.91 Recreation and culture me 609 814 - - - - - - EcononvctlevabPmanl• - - - 983 1.131 1,334 1.502 1,700 2063 2482 Publc works - - - 1,744 1,844 2088 1,874 1,665 2757 3.W CaPilal projects 3,713 61628 6.363 10,166 10,362 10.726 13,437 16,829 27.922 30.836 Deblservlce - - - - - - - - - 2 Other 6 254 1.731 4 3 4 6 9 12 Committed: PubllceafetY 287 349 942 552 456 330 396 820 2178 2847 Recreation and culture - - 232 - - - - - - - Stoimwaterrn..gement 1,116 11195 1.091 1.367 1.917 2A38 3.160 2306 3.669 4,612 Capilal project; 1.089 613 631 835 d69 379 555 596 756 Total Other GoVemmentol Funds 6.889 MAU 12713 17.537 19.597 26981 26.569 29.217 46.519 52.280 Tab] Govemmndd Fund eolonca $ 11.4" $ 15.531 $ 18,444 S 23.213 $ 26389 5 34.932 $ 37866 $ 44.708 $ 62.201 $ 72.941 Source: RespecXVe Iboal Years' Financial SFalemenb - Xalance Sheet G.vemmenMl funds •Prior to IY2617. Hds.mound sms seflecfed In •OMee °Pit" 172023, Mb amooN was reflected In •OMer 5 - 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 •• "• 5511004 Vision Tax Recapture Increase approved by voters began January 1. 2017 S -REVENUE CAPACITY Page 8 "City of Rogers State of Total - Tulsa Total - Rogers YEAR Owasso Tulsa County County Oklahoma County County 2023 4.050% 0.367% 1.833% 4.500% 8.917% 10.383% 2022 4.050% 0.367% 1.833% 4.500% 8.917% 10383% 2021 4.050% 0.367% 1.833% 4.500% 8.917% 10.383% 2020 4.050% 0.367% 1.833% 4.500% 8.917% 10.383% 2019 4.050% 0.367% 1.833% 4.500% 8.917% 10.383% 2018 4.050% 0.367% ?.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" 3.5007. 0.917% 1.833% 4.500% 8.917% 9.833% 2014 " 3.000% 0.917% 1833% 4.500% 8.417% 9.333% 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 •• "• 5511004 Vision Tax Recapture Increase approved by voters began January 1. 2017 S -REVENUE CAPACITY Page 8 CITY OF OWASSO, OKLAHOMA GOVERNMENTAL - ACTIVITIES TAX REVENUES BY SOURCE (LAST TEN YEARS (accrual basis of accounting) (amounts expressed In thousands) Source: Respective Fiscal Years' Financial Statements - Government -Solder Statement of Activities S - REVENUE CAPACITY Page 9 Franchise L Public Sendce Year Sales Tax Use Tax Tax Hotel Tax Total 2023 $ 45.781 $ 5,280 $ 1,506 $ 667 $ 53,234 2022 43,553 4,581 1,285 636 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 7.198 472 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 2075 23.841 968 1,237 412 26,458 2014 21,254 800 1,235 386 23,675 Source: Respective Fiscal Years' Financial Statements - Government -Solder Statement of Activities S - REVENUE CAPACITY Page 9 CITY OF OWASSO, OKLAHOMA PRINCIPAL SALES TAX REMITTERS CURRENT YEAR AND NINE YEARS AGO June 30, 2023 Sources: Oklahoma Tax Commission • Gross Amount Reported Prior to Pmt of 0.5% Retention to OTC "Gross Amount Reported Pdor to Pmt of I % Retention to OTC S — REVENUE CAPACITY Page 10 2023 "2014 Percentage Percentage Of Total of Total NAICS Revenue Revenue CODE Sales Tax Remitter Amount Remitted Revenue Base Base Amount Remitted Revenue Base Base 44-45 Retail Trade $ 28,353.828 $ 317,974,969 67% $ 15,417,897 $ 180,961,232 72% 72 Accommodation /Food Services 6,827,165 76,563,474 16% 3,079,473 36,144,049 14% 22 Utilities 1,891,216 21,209,106 4% 802,520 9,419,249 4% 42 Wholesale Trade 2,072,959 23,247,269 5% 645,930 7,581,338 3% 51 Information 637,351 7,147,594 2% 408,831 4,798,486 2% All Other 2,409,789 27,024,661 6% 1,010,397 11,859,120 5% $ 42,192,308 $ 473.167,074 100.00% $ 21,365,048 $ 250,763,474 100.00% Sources: Oklahoma Tax Commission • Gross Amount Reported Prior to Pmt of 0.5% Retention to OTC "Gross Amount Reported Pdor to Pmt of I % Retention to OTC S — REVENUE CAPACITY Page 10 CITY OF OWASSO, OKLAHOMA PROGRAM REVENUE BY FUNCTION /PROGRAM (LAST TEN YEARS) (accrual basis of accounting) (amounts expressed In thousands) Program Revenue Governmental acfiNlies: Charges for services General gov smment Public safety Community development' Reaeation and culture Economic development Public works ° Operating grants and contributions Capital grants and contrbutions Total governmental activllles program revenues BuslnesAype activities: Charges for services Water Wastewater Sanitation Recycle center Golf course Operating grants and contributlons Capital giants and contributions Total businestype activities program revenues Total primary government program revenues 2014 2015 2016 2017 ME $ 970 $ 627 $ 655 $ 514 $ 946 2,962 2,667 2.885 3208 2.816 1,789 - 19 47 5D 111 106 112 136 139 9 10 11 IB 18 811 795 870 1,092 1,233 1,754 1,753 3.446 509 2,884 12;850 1,042 6,889 4,741 2,337 S 19:467 $ TOOD $ 14.887 $ 10.265 $ 10.423 $ 5,384 $ 5,222 $ 5.763 $ 6.260 $ 6.591 3.720 3,75D 4,002 4,323 4,578 1,789 1,823 1,910 2,003 2,127 35 29 23 39 36 744 726 697 740 761 3,787 526 1,101 1,346 427 $ 15.459 $ 12,076 $ 13.496 $ 14,711 $ 14,520 $ 34,926 $ 19,076 $ 28.383 $ 24,976 $ 24,943 (Conlinued) Source: Respective Fiscal Yeah' Financial Statements - Slefemerda /ACitY81es • Pdar to 2016 combined with General Government ° Certain balances from the statements were combined for comparative purposes 5 - REVENUE CAPACITY Page I 1 CITY OF OWASSO. OKLAHOMA PROGRAM REVENUE BY FUNCTION /PROGRAM - continued (LAST TEN YEARS) (accmoi locals of acccuning) (amounb expressed In thousands) Program Revenue Governmental activities: Chargestorservices General government Public safely Community development Recreation and culture Economic development Public worts° Operating grants and contributions Capitol grants and contributions Total governmental acllvitles program revenues Business -type activities: Charges for services Waler Wastewater Sanitation Recycle center Golf course Operating grants and contributions Capital grants and contributions Total business -type activitles program revenues Total primary government program revenues 2412 2020 2021 2022 2023 $ 678 $- 6o $ 593 $ 596 $ 788 3A58 2,904 2.561 2.655 2712 55 38 330 451 301 94 93 103 127 97 19 16 14 12 12 1,433 11620 1,892 1,835 11982 2,947 3;587 61196 6,700 6,696 2.308 2.914 799 2.965 528 $ 10,592 $ 11,775 $ 12.488 $ 15.341 $ 13.116 $ 6,427 $ 6,782 $ 7,888 $ 8,062 $ 8.358 4,776 4,946 5,775 5.810 6,289 2281 2.356 2,577 2155B 2,667 19 17 33 69 62 733 837 801 968 1,247 804 2.107 405 1.231 1.094 $ 15.040. $ 17,045 $ 17,479 $ 18.698 $ 19,717 $ 25.632 $ 28,820 $ 29.967 $ 34,039 $ 32AM j0srudedl Source: Respective Fbcal Years' Flnanclal Statements - Sfatementof Aclivtiles • Prior to 2016 combined wHh General Government Certain balances from the statements were combined for comparative purposes S- REVENUE CAPACRY Page 12 CITY OF OWASSO, OKLAHOMA RATIO OF OUTSTANDING DEBT TO REVENUE LAST TEN YEARS June 30, 2023 m °i .a Nelmsw Gly ✓Oreuo puM'l.tl mnrtlllnen.bltlebnnnM1 Mep.nwleNlpMen eMlre. eNMMlnpexlnp MO bn y.arp.rlpe � - case er - m.p. r„pbm..be m rvzmz z . ow ve . serte, M,pbm..ba b rvaeaz S -DEBT CAPACITY Page 13 CITY OF OWASSO, OKLAHOMA COMPUTATION OF LEGAL DEBT MARGIN DEBT TO REVENUE June 30. 2023 2016 2015 2816 2811 2018 2019 2020 2821 2822 2023 Net N+eved VoLolian Ill $ 230.085 $ 236,09 $ 20.875 $ 261.285 $ 06662 $ 286351 $ 296.993 $ 3M5.= $ 320,)6] $ 327,149 Debt llmlt(2) 23,009 231601 24,188 261129 21,466 MA35 291699 30.522 32,077 32775 Tatd net debt eubjeatto Lm8(3) Told debt mordn $ 23,09 $ 23601 $ 26155 $ 26.129 $ 0,466 $ 28A35 $ 29.699 $ 30.522 $ 32.017 $ 32.,5 Total netdebt applaable to the MA pen:enlage of debt 6mlt 09. 09. 0% 0% 0% 0% 0% 0% 09. 09. Source: QJ Tuha CeunH N +e++ar L 2epen County Neva - Nef A++ew d VdueBen (2/ ArBde 10.5«Xen 26, OkbM1emaCendtlu0an - IDR dNelA+seved VoWOXen (3) Adde 10. SeoBen 27. Oklahoma Co.0 luXOn 5 - DEBT CAPACI(Y Page 14 CITY OF OWASSO, OKLAHOMA COMPUTATION OF DIRECT AND OVERLAPPING DEBT June 30, 2023 Source: Tulsa County a Rogers County Assessor's Offices Current year information not yet available (1) Net general bonded debt. (2) Percentage based on net assessed value of property. S —DEBT CAPACITY Page 15 Estimated Percentage Applicable to Estimated Share Net Debt City of Owasso Applicable to City Governmental Unit Outstanding (1) (2) of Owasso Debt repaid with property taxes Counties: Tulsa County $ 97,045,128 4.3% $ 4,209,609 Rogers County - 3.4% - 4.209,609 Independent School District Owasso (V -18( 48,980,000 100% 48,980,000 48.980,000 City Direct Debt - 100% - Total Direct and Overlapping Debt $ 53,189,609 Source: Tulsa County a Rogers County Assessor's Offices Current year information not yet available (1) Net general bonded debt. (2) Percentage based on net assessed value of property. S —DEBT CAPACITY Page 15 CITY OF OWASSO, OKLAHOMA SCHEDULE OF DEBT SERVICE COVERAGE REQUIREMENTS June 30, 2023 Gross Revenue Available for Debt Service: Charges for services: Water Wastewater Refuse Recycle Penalties /late charges Golf course Sales tax pledged and transferred Total Gross Revenues Available Operating Expenses: Utility billing Administration Water Wastewater treatment plant and collection Refuse collections and recycle center Golf Total Operating Expenses Net Revenues Available for Debt Service Total Debt Service Requirements Computed Coverage Coverage Requirement 20098,2009C, 2011, 2013 SRF OWRB OPWA OPGA and 2019C Loan Issues $ 8,125,830 $ - $ 8,125,830 6,288,762 - 6,288,762 2,666,882 - 2,666,882 62.011 - 62,011 231,874 - 231,874 - 1,246,750 1,246,750 22,449,713 22,449,713 39,825,072 1,246,750 41,071,822 530,432 - 534432 1,004,105 - 1,OD4,105 4,749,976 - 4,749,976 2633,452 - 2633,452 1,733,426 - 1,733,426 1,828,668 1,828,668 10, 651,391 1,828,668 12,480,059 $ 29,173,681 $ (581,9181 $ 28:591,763 $ 7,972512 359% 125% Note 1: The above gross revenue and operating expenses only include the activities of the Authorities related to water, wastewater, refuse services, and golf course operations (golf excluded on OWRB note issue coverage - see Note 3 below), excluding depreciation and bad debt expense. Note 2: The coverage requirements on the OWRB notes are calculated using maximum annual debt service on these notes and any subordinate debt. Note 3: Golf course revenues of the Owasso Public Golf Authority have been included as "Gross Revenue Available" for Debt Service to the 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 Source: Respective Years Flnanclal Statements Note: No Genemi Fund debt was outstanding during the past 10 years S - DEBT CAPACITY Page 17 Net OPWA Revenues Debt Service Requirements Grass Direct Avaliabie tar Total Debt YEAR Revenue Expenses Debt Service Service Coverage 2023 $ 41,071.822 $ 12,480.059 $ 28,591,763 $ 7.972,512 358.63% 2022 38,791,372 11,356,295 27.435.077 7,997,349 343.057 2021 36.385.422 11.070.875 25,314,547 8,004,858 316.24% 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 29,388,217 9,743,869 19.644,348 2.967,131 662.07% 2016 28.550,722 9,789,946 18,760,776 3,948,560 475.13% 2015 26,839,010 8.216.984 18,622.026 3,778,906 492.79% 2014 25,773,170 8.132.642 17.640,528 5.757,634 306,39% Source: Respective Years Flnanclal Statements Note: No Genemi 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, 2023 • Sovrce: US Cemoa B... •• Soorce: City of 0.as . Economic Oevelopmenl Depadmeef •..ObfeMn d Bom Owar,o Public Scboob S - DEMOGRAPHIC AND ECONOMIC INFORMATION Page I8 Median Fiscal Year Population ` Yearly Change Median Age " Household Income •" 2023 39,899 1.99% 34,00 Not Available 2022 39,119 1.00% 33.30 $ 71,621 2021 38.732 4.00% 34.00 71,055 2020 37,241 0.93% 33.50 72,443 2019 36.897 0.78% 32.90 72,930 2018 36,610 0.90% 35.90 69,886 2017 36,283 0.57% 33.50 67,340 2016 36,079 3.83% 34.50 65,550 2015 34,747 2.31% 35.10 65.881 2014 33,962 4.10% 34.30 65,550 • Sovrce: US Cemoa B... •• Soorce: City of 0.as . Economic Oevelopmenl Depadmeef •..ObfeMn d Bom Owar,o Public Scboob S - DEMOGRAPHIC AND ECONOMIC INFORMATION Page I8 CITY OF OWASSO, OKLAHOMA PRINCIPAL EMPLOYERS JUNE 30.2023 Employer Type of Business Employees Rank Percentage of Total Employment Employees Rank Percentage of Total Employment Saint Franca Health System Health Care 9,500 1 2.167. 8,000 1 1.87% Hincrest Healthcare System Health Care 6,000 2 1.37% 6,000 6 1.40% Tuba Public Schools Public Schools 6,000 3 1.37% 7,500 3 1.75% Ascension St. John Health Care 51000 4 1.14% 7,500 5 1.75% American Airlines Maintenance Base Aircraft Maintenance 5,000 5 1.14% 7,500 4 1.75% City of Tuba City Government 3.500 6 0.80% 4,500 7 1.05% QuikTrip Convenience Store 3,500 7 0.80% - - 0.00% Macy's Fulfillment Center Consumer Fu1011ment Center 3.000 8 0.68% - - 0.00% Amazon Fulfillment Center Consumer Fulfillment Center 3,000 9 0.68% - - 0100% Broken Arrow Public Schools Public Schools 2,500 10 0.57% - - 0.00% Wal-Mart /Sam's Club _ _ - 7,500 2 1.75% Reasafs - - - 3,000 B 0.70% Spirit AeroSystems - - - 3,000 9 0.70% Tuba Community College - 2,500 10 0.58% 47.000 10.71% 57,000 13.30% Source: [ffy afiuha S- DEMOGRAPHIC AND ECONOMIC INFORMATION Page 19 CITY OF OWASSO, OKLAHOMA Bank Deposits LAST TEN YEARS Owasso Bank Year Deposits Growth 2022 $ 1,203,800,000 6.19% 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: RegionTrock 2023 Owasso Economic Outlook Information based on a calendar year -2023 not yet available S - DEMOGRAPHIC AND ECONOMIC INFORMATION Page 20 CITY OF OWASSO, OKLAHOMA BUILDING PERMIT HISTORY LAST TEN YEARS JUNE 30, 2023 Year Commercial Permits Commercial Value Residential Permits Residential Value Multi - Family Permits* Mulli - Family Value* 2023 17 $ 29,183,000 105 $ 19,439,670 53 $ 5,110,000 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 - - •New caleoory In 1017, pdorrean arc Included in ResWanRallolals Scarce: City arOw o CommanRy Development I.Wmalbn b band en a maalya .. S— DEMOGRAPHIC AND ECONOMIC INFORMATION Page 21 CITY OF OWASSO, OKLAHOMA PUBLIC SCHOOL INFORMATION LAST TEN YEARS JUNE 30, 2023 Year Est. Eru n.enl Age Number of Est. Percent of High 4.17 Elementary Schools School Graduates 2023 9,900 10 86.07. 2022 9,656 10 Not Available 2021 9,035 10 Not Available 2020 9,782 9 94.09 2019 9,629 9 9209 2018 9,730 8 98.59 2017 9.737 8 99.09 2016 9,678 8 96.09 2015 9.651 8 98.09 2014 9,578 8 98.09 Source: Annual Reports submitted by the Owasso Public School District to the Oklahoma State Department of Education S- DEMOGRAPHIC AND ECONOMIC INFORMATION Page 22 CITY OF OWASSO, OKLAHOMA UNEMPLOYMENT RATE LAST TEN YEARS JUNE 30, 2023 Year Unemployment Unemployment Rate • UnRed Rate - Owasso Rote - Oldahoma Slates 2023 5.60% 2.80% 3.80% 2022 2.50% 3.30% 3,70% 2021 3.50% 4.30% 5.80% 2020 5.60% 6.10% 6.90% 2019 2.90% 3.20% 3.60% 2018 2.70% 3.50% 3.70% 2017 3.90% 4.50% 4.20% 2016 3.90% 5.10% 4.90% 2015 3.20% 4.30% 5.10% 2014 3.30% 4.307. 6.20% Source: B... ofLcbe,SIUIISO. ando.. Erommlc OuBCnk 5- DEMOGRAPHIC AND ECONOMIC INFORMATION Page 23 CITY OF OWASSO, OKLAHOMA SELECTED OPERATING INDICATORS BY FUNCTION /PROGRAM LAST TEN YEARS 2pid Ms "im 201y nil Mr Z" m:i a.5a.h}na..wr v r.e.. orr..,. L51 z xr„a..mra.. p.nmr.ra.mr Lm Ly .r. In.mm.I F Mro.r d r.�e ».m Iss Lu .. I. nenlFV .m.lar<rear.IFr...enclomc5 »cJ• ISM llalZ a. la.rnutl F rvnbn cr pvnwtl <m. r 2.fF 6rncmlln na.IAn.m.IFrviN.rcl leldcMwr• .10.H} ID.54 .arin.rac. wp.rFrwmrar.mna..pa.r,.r . a... a ySOA N. u} n.w .n....en..xvw.. «.amr • rrina..rr. w..mrt.lm}.+.p..r....ran.ml..wne . e..a..wrF..r.. I»awn.ormrr v L51 Iss Lm L.I Iss Lu la 2.fF -IfR ,OIS Y.l e} ySOA N. u} y .loci IJR ISM} 19. N 11 m. la.cnm.I Fn.rprelm.erMCe cdr' .21IZ .2,1} I.Si q}yF e.N2 u.0.5y OOA n,15F . 12M 0.91F II] I»awn.ormrr I. xurLSr.INr.Slelwu 2 NUri.r.l Frefprl.n H y 55 SS y n U p m N 11 m. la.cnm.I Fn.rprelm.erMCe cdr' .21IZ Sys e. xcm FCnar. la.cr.m.l nrrarindf.. ear' Imn S.Sn 9]E 9.95} aax ).yi a.lfx Il.ii u.M 214 am. p.xr.naem.e.rr..d.wmv.m vamn.n..nrwwe.rw . r.r.. e.m S -OPERATING INFORMATION Page 24 CITY OF OWASSO, OKLAHOMA SELECTED OPERATING INDICATORS BY FUNCTION /PROGRAM LAST TEN YEARS p.amm W. 0.siM ws.W.�bv. la, 1]{I w W.l MAWa3L M•M1gmAfi • sW 5{] { { >.. 3 i 1 14uxd1 .wypY 5 NW I.wLIL i NVUtlr.Ynnitl Ce/PoVritl•r MY•Nx• wy.—, Nm AWV• MrvAYmv w 31{ ]A IW A-1wa Nol,.wxJl• xol nwipY 95 Xa1NdaW 0.eo•cmmnFpnl•f 1.4mmAN.eM•n Xw { amain g X.{.mbN• zs•NruMrvYrc• I¢no Inb: Insro b]g }1v1 3siPo Itul nns npN al nwYW {5•�OMhhNma Fp•M•• I. x.HaaMa cml l..nur•nl xmlMrenl f 3 { { >.. 3 i 1 14uxd1 3 31Na{IS $ 3 95bW .lye.awearunfrx 1i516'f 3a" xiu5.. 34.1aM x.1aw.,a.a.o..a . ex.µsalww { amain y °I.,. z Wnl.er Mpenvn5m/{ulvwq. anvaa..}Apm� I +{ v u nx m uar�epmr �mavwn..Wepe..va.r. x OI/VWtlw Pgien Oi6b 511.10 }i}m n lrpvn I.mw 'B9.m W'mre6mRepvn MVdN•m Mpen Xem ASb wpepmrVan' _ OhVYX.vpnpsn { MMIR i I6N1.1x 1 3 { 6v.4f { 9 }µp { }py5 i SAY.G 5 392N i tuiq 111. 113x53} 1".. ESaRtl Mmie Cbmlpen tetivavrlverPepenVM 1 .1 - • WmmeMpMixMhW avea..as5w �YaSnaa•aFtlh•nam FYp•eANfxbW]N• W OXYSnahy4/•'. �i�a •vsftl•sM.eNnrw•• /WaWnaMM•�in./ S- OPERATING INFORMATION Page 25 I. vY..Il..r rrI4Imevwn /5.rr..* nk. w....rn.w.. penw5mi. vwkx.m5mmm.wmr m.ma� ma..k,l..rn.pe,rwl.. u VgW.nkeO��.'dm- PNave4n4nnepw Rrk.Rmmnepen re tlVeLXUrL.pemv4�. Cmm./r<.Mr I.vMnX.xnemenYAm.l1 elP.rp'. S.rim �eiavw.0 .mvwmvmmm �wwumr 1Waw5ml..m.pamxwr r.�tiv.5mk. n.o-e. veL. `IIIII arrnp.m. I. v,w.mn.mm. x.m xvdn..mv�vpw wm wlavv.5.x... �e.x.wmLm. rmavww.mn.p.mvw. CITY OF OWASSO, OKLAHOMA SELECTED OPERATING INDICATORS BY FUNCTION /PROGRAM LAST TEN YEARS nt 2120 mp w ma w ULM mp 5 f Luau s s 1 3f9eI s LSU9 5 s 5 wr/MmL f f rA wr wm. am sv w vao Lml wr.wm. wv, rpm rmelr uln Suo rsa r.xx..ru - xn..amL IYra mi..amL .rvm w.am Swv.k.parkw.nm�..r Lwml..:rvryi.nv.Yn . ry . rr..{L xvsrl..rn.mmr�eLm. _ aVNx..vmpvnveL.— 5 mSm� •xe...a,v..mmevw....r�.r5.. vw .yLwep.r.smSwpM.wnwwew nrm�, me: M.•/ M.' M. r •.S.A..awM.re.M�. +ewai.ww.rrm.l S - OPERATING INFORMATION Page 26 CITY OF OWASSO, OKLAHOMA CITY EMPLOYEES BY FUNCTION LAST TEN YEARS .wwe.nn. o..,.vw•sa:..a.rupap . m. s....: m.:w.,•ww1••.n n.u. sw.a..ev n.a.e.r.eu....se... 5- OPERATING INFORMATION Page 27 mr n macro em urz an .vz v w.�vn.�n.m.11w un un .m +113 .m n/. In stn I ein eamzsl =1a...,.. 4vz +na s in + mm vm vm 11113 vin 1a ....anm.am• m a.uv.ne.nwl.r.. . + zm nn • • •p. •113 am nr• srn an +v+ .14 s'. •113 •/n .m o-on..o-n nn zrn zrn rs .m.xn em nn rs i in n i i n rs n Z. 911 m 1nn um zm unnm aznrin n r.• an vin +m 9m •m ..In 11 m .1 In urn mm mar.rtw.n psn .1. mrn aw aw msn mw mva myz li in nva enrs mv: nin nuz rzm Po m. x•.ac 1. ,na am am ..m mn zIn rv. s.nk.1 w Nn �n in s1. IT 1. ain mm v: 1m 1. in 1rs in 1. z•.n•mn.cv.a.li arm 1 1 r laarwkue 113 mm vm u9 . 9 .1113 nrn n cw.. u1 -1101 .vz m e arm sirs I'm mm.+n c.x1 bxkan..� sirs am stn sin sm e �m m in 113 11313 IT. a..m. o..amn,.a yin 1 rsn smmrv.ryrmn•.13 1 nrs urz iin nn nn 311. v. Iu. aa9�i. o..a...a 1113 +ru in 1113 x113 In am mm . •19 111 s aw•ryxlewu : ueaw, e in rue osn I in e m em m nu RM w.Fir u4wx. um ue.uz . npz an "In u w . 1zm I.I. nn zm zm nn zm zin zin in zin w.x..wnw.• zm zm .m ewe me n!+ nn a iW wuxweY uW mLi uvs 1l1 /. PV. san mn nLf rsLa aW a.n..cm.m• evs nn .m •1n nn 9113 •m vm rwma.e.. nn •an .m .113 9m + In 11. sin nn v.wa. c... urz tin un 2in 21. zan mm vn ma urz r.a e.wa. c.w1 1m n. zm Tin in nn +m am c.n :in :in ao.•n=. � x.aee....m. +• w�aan.wl nr: mn nn 6 na w: in .1. nm mm ill. mm inn nm 1.In lauwzarm w m a. mrn .+1. —1. a1. .1. za +.1n .wwe.nn. o..,.vw•sa:..a.rupap . m. s....: m.:w.,•ww1••.n n.u. sw.a..ev n.a.e.r.eu....se... 5- OPERATING INFORMATION Page 27 CITY OF OWASSO UTILITY AUTHORITY WATER AND SEWER RATES (Last Ten Years) (Residential - Inside City Umlh) Source: City Ordinance S- OPERATING INFORMATION Page 28 Water Sewer Monthly Base Kaye per 1,Uw moninty nose Kure per 1,000 Fiscal Year Rate Gallons Rate Gallons 2023 $ 13.34 $ 7.97 $ 11.04 $ 4.81 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 1134 5.46 7.47 3.25 2015 11.50 5.02 6.97 2.95 2014 11.29 4.81 6.97 2.95 Source: City Ordinance S- OPERATING INFORMATION Page 28 CRY OF OWASSO UTILITY AUTHORITY WATER REVENUE BY CUSTOMER TYPE (Last Ten Years) 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Residential $ 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 $ 4,743,047 Commerclal 1,270.976 1,323,475 1,472681 1,938,004 2,092634 2,020,572 2,141,421 2,498,273 2757,031 2,868.418 Other 284,487 247,846 336,234 314,529 445 ,520 488,504 384,308 583,923 490,277 514,365 Total $ 5,090,121 $ 4,948.736 $ 5,515,781 $ 5,979,647 $ 6,248,533 $ 6,106,293 $ 6,448,120 $ 7,632,976 $ 7,757,544 $ 8,125,830 Source: City of Owasso grlliry Billing Oeperft.d 5— OPERATING INFORMATION Page 29 CITY OF OWASSO, OKLAHOMA CAPITAL ASSET CONDITION (LAST TEN YEARS) 2014 2015 2016 2017 2010 2019 21120 2021 2022 W23 TOlal Capital Aael Cost §250.183,492 3257.51303 $274.467,191 .1288,836,198 $312.998.531 $310.031,713 $365,430.180 }385,372360 1413.694.595 31"776.030 Nondepedade Land B CIP 23.170.857 21.15201 31.418.724 22339598 41,107.740 59.330]43 48.502,464 61,962656 82592340 86010.562 Total Oepealade /AmodidaWe Capital Aaeh $227.012635 $236,W0.822 $243.048.767 $261d96.6W $271.890,791 1201500.970 $316.927.716 }323,409,704 1331.102255 $350)65.468 Accum laled Depleciafwn /Amodbalion $ 86132412 $ 91.998.891 $ 99.731.554 $ 100.013523 3 117d227W $ 126.024.353 $ 136.100.300 5 147,88&497 $ 150,525345 $ 1711878.307 Rat* of Acaunvhted Depredatbn /Amgthalion to Tot0l Capffdl eh 34% 36% 36% 37% 37% 37% 37% 38% 38% 30% Ratio at AC CUmuhted Degeciolion /Pmglhollon to Degedable /Anort¢ able Capital AVeh 377. 39% 41% 41% 43% 45% 43% 46% 4% 48% Ratio of Accumulated Depreciation /Amortization to Total Capital Assets 39% 387. 387. 387- 387. - 377. 37% 37% 36% 36% 36% 347' 357. 34% 33% 32% 317. 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Ratio of Accumulated Depreciation /Amortization to Depreciable /Amortizable Capital Assets 60% 50% _ 46 %--- 48 % - -48% % 37% 39% 41% 41 %_ 43% 46'% 43 % 40 30% 20% 10% 0% 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 5 - 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 Firefighters Pension and Retirement System GAAP ...Generally Accepted Accounting Principles GASB ...Governmental Accounting Standards Board GFOA ... The Government Finance Officers Association of the U.S. and Canada GO ...General Obligation (bonds) ICMA -RC ...457 Deferred Compensation Plan IRC ,..Internal Revenue Code MSA ...Metropolitan Statistical Area (of Tulsa) OEDA ...Owasso Economic Development Authority OKMRF ...Oklahoma Municipal Retirement Fund OPEB ...Other Post Employment Benefits OPGA ...Owasso Public Golf Authority OPPRS ...Oklahoma Police Pension and Retirement System OPWA ...Owasso Public Works Authority OSNI ...Owasso Strong Neighborhood Initiative OWRB ...Oklahoma Water Resources Board RAN ... Revenue Anticipation Note SRF ...State Revolving Fund UAAL ... Unfunded Actuarial Accrued Liability S — OPERATING INFORMATION Page 31 A WPA ]Wlm Annual Comprehensive Financial Report City of Owasso, Oklahoma Year Ended June 30, 2023