THE CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL STATEMENTS AND INDEPENDENT AUDITOR’S REPORTS AS OF AND FOR THE FISCAL YEAR ENDED JUNE 30, 2019  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2019 THIS PAGE INTENTIONALLY LEFT BLANK 2  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2019 TABLE OF CONTENTS Page Independent Auditor’s Report on Financial Statements…………………………………… 5-6 Management’s Discussion and Analysis……………………………………………………… 7-17 The Basic Financial Statements: Government-Wide Financial Statements: Statement of Net Position …………………………………………………………………… 19 Statement of Activities ……………………………………………………………………… 20 Governmental Funds Financial Statements: Balance Sheet ………………………………………………………………………………… 22 Statement of Changes in Fund Balances……………………………………………………… 23 Reconciliation of Governmental Fund and Government-Wide Financial Statements……… 24-25 Proprietary Funds Financial Statements: Statement of Net Position……………………………………………………………………… 27 Statement of Changes in Net Position………………………………………………………… 28 Statement of Cash Flows……………………………………………………………………… 29 Discretely Presented Component Units Combining Financial Statements: Statement of Net Position……………………………………………………………………… 31 Statement of Changes in Net Position………………………………………………………… 32 Footnotes to the Basic Financial Statements ………………………………………………… 33-71 Required Supplementary Information: Budgetary Comparison Information Budgetary Comparison Schedule (Budgetary Basis) – General Fund………………………… 73 Footnotes to Budgetary Comparison Schedule………………………………………………… 74 Pension and OPEB Plan Information Schedules of Pension Information…………………………………………………………… 75-78 Schedule OPEB Information ………………………………………………………………… 79 3  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2019 Supplementary Information: Combining Balance Sheet – General Fund Accounts…………………………………………… 81 Combining Schedule of Revenues, Expenditures and Changes in Fund Balance – General Fund Accounts ………………………………………………………………………………………… 82 Combining Balance Sheet - Non-Major Governmental Funds………………………………… 83-84 Combining Statement of Revenues, Expenditures and Changes in Fund Balance - Non-Major Governmental Funds…………………………………………………………………………… 85-86 Combining Schedule of Net Position – Miami Special Utilities Authority - Enterprise Fund Accounts……………………………………………………………………………………………87 Combining Schedule of Revenues, Expenses and Changes in Net Position– Miami Special Utilities Authority – Enterprise Fund Accounts ………………………………………………………… 88 Combining Schedule of Cash Flows – Miami Special Utilities Authority – Enterprise Fund Accounts………………………………………………………………………………………… 89 Combining Statement of Net Position – Internal Service Funds……………………………….… 90 Combining Statement of Revenues, Expenses and Changes in Net Position– Internal Service Funds…………………………………………………………………………………………….. 91 Combining Statement of Cash Flows – Internal Service Funds………………………………… 92 Combining Statement of Cash Flows – Discretely Presented Component Units ……………… 93 Schedule of Expenditures of Federal Awards………………………………………………… 94 Internal Control and Compliance Information Independent Auditor’s Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards…………………………………………………………… 97-98 Schedule of Findings………………………………………………………………………… 99 4  INDEPENDENT AUDITOR’S REPORT To the Honorable Mayor and Members of the City Council of the City of Miami, Oklahoma Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the City of Miami, Oklahoma, (the “City”) as of and for the year ended June 30, 2019, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We did not audit the financial statements of the Miami Industrial Development Authority (“MIDA”), which represents 10 percent, 7 percent, and 10 percent, respectively, of the assets, net position, and operating revenues of the aggregate discretely presented component units. Those statements were audited by other auditors, whose report has been furnished to us, and our opinions, insofar as it relates to the amounts included for MIDA, are based solely on the report of the other auditors. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinions In our opinion, based on our audit and the report of the other auditors, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the 5 309 N. Bryant Ave. • Edmond, OK 73034 • 405.348.0615 • Fax 405.348.0931 • www.jmacpas.com Member of AICPA and OSCPA business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the City, as of June 30, 2019, and the respective changes in financial position, and, where applicable, cash flows thereof, for the year then ended in accordance with accounting principles generally accepted in the United States of America. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, budgetary comparison information, and the pension plan and other post-employment benefits funding schedules, as listed in the table of contents, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The other supplemental information, as listed in the table of contents, is presented for purposes of additional analysis and is not a required part of the basic financial statements. The other supplementary information is the responsibility of management and was derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the other supplemental information is fairly stated, in all material respects, in relation to the basic financial statements as a whole. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated February 11, 2020, 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 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 internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance. February 11, 2020 6  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2019 MANAGEMENT DISCUSSION AND ANALYSIS 7  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2019 Our discussion and analysis of the City of Miami’s financial performance provides an overview of the City’s financial activities for the fiscal year ended June 30, 2019. Please read it in conjunction with the City’s financial statements, which follow this section. FINANCIAL HIGHLIGHTS  For the fiscal year ended June 30, 2019, the City’s total net position increased by $1,421,575 or 5.1% from the prior year.  During the year, the City’s expenses for governmental activities were $13.3 million and were funded by program revenues of $2.3 million and further funded with taxes and other general revenues that totaled $11.7 million.  In the City’s business-type activities, such as utilities, program revenues exceeded expenses by $4.5 million.  At June 30, 2018, the General Fund reported an unassigned fund balance of $352,315.  For budgetary reporting purposes, the General Fund reported revenues above estimates of $271,033 or 3.6%, while expenditures were under the final appropriations by $959,457 or 9.7%. OVERVIEW OF THE FINANCIAL STATEMENTS The financial statements presented herein include all of the activities of the City of Miami (the “City”) and its component units using the integrated approach as prescribed by GASB Statements No. 14, 34, 39, and 61. Included in this report are governmental-wide statements for each of 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 measurement 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), and deferred outflows of resources, as well as all liabilities (including all long-term debt) and deferred inflows of resources. About the City The City of Miami is an incorporated municipality with a population of approximately 13,570 located in northeastern Oklahoma. The City operates under a council-manager form of government with a charter that provides for three branches of government.  Legislative – the governing body includes an elected five-member City Council and Mayor  Executive – the City Manager is the Chief Executive Officer and is appointed by the City Council  Judicial – the Municipal Judge is a practicing attorney appointed by the City Council The City’s Financial Reporting Entity This annual report includes all activities for which the City Council of the City of Miami is fiscally responsible. These activities are operated within several separate legal entities that are reported together to make up the City’s financial reporting entity. The City’s financial reporting entity includes the City of Miami, two blended component units, and four active discretely presented component units. 8  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2019 Primary Government: The City of Miami – incorporated municipality that operates the public safety, health and welfare, streets and highways, parks and recreation, and administrative activities as a home rule charter city Blended Component Units: Miami Special Utility Authority (MSUA) – public trust that operates the electric, water, wastewater, and solid waste/sanitation services of the City. Miami Development Authority (MDA) – public trust created to promote economic development in Miami. Discretely Presented Component Units (separate legal entities for which the City Council is fiscally responsible, but appoints a separate governing body): Miami Education Facilities Authority (MEFA) – public trust that promotes the development of educational facilities within the city. The trust is currently inactive. Miami Downtown Redevelopment Authority (MDRA) – public trust created to promote the redevelopment of the downtown area. The Authority does not issue separate financial statements. Miami Industrial and Public Facilities Authority (MIPFA) – public trust that promotes the use of facilities in the City of Miami area. The Authority does not issue separate financial statements. Miami Community Facilities Authority (MCFA) – public trust that promotes the development of commerce, housing, recreation, education and public facilities within the city. The Authority does not issue separate financial statements. Miami Industrial Development Authority (MIDA) – public trust that promotes industry in and around the City of Miami. The Authority issues separate financial statements, and can be obtained by contacting in the MIDA offices. Using This Annual Report This annual report is presented in a format that substantially meets the presentation requirements of the Governmental Accounting Standards Board (GASB) in accordance with generally accepted accounting principles. The presentation includes financial statements that communicate the City’s financial position and changes therein at two distinct levels:  The City as a Whole (a government-wide presentation)  The City’s Funds (a presentation of the City’s major and aggregate non-major funds) 9  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2019 The City’s various government-wide and fund financial statements are presented throughout this annual report and are accompanied by:  Management’s Discussion and Analysis – that provides useful analysis that facilitates a better understanding of the City’s financial condition and changes therein.  Footnotes - that elaborate on the City’s accounting principles used in the preparation of the financial statements and further explain financial statement elements.  Supplemental Information – that provide additional information about specified elements of the financial statements, such as budgetary comparison information, and capital assets and long- term debt information. 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, deferred outflows, liabilities and deferred inflows 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. These two government-wide statements report the City’s net position and changes in them from the prior year. You can think of the City’s net position – the difference between assets, deferred outflows, liabilities, and deferred inflows – 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, electric, airport, and sanitation activities are reported here.  Discretely-presented component units -- Accounts for various activities related to economic development, facility management, facility construction, and downtown development. 10  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2019 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, the City Council 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, which focus on how money flows into and out of those funds and the balances left at year-end that are available for spending. These funds are reported using an accounting method called modified accrual accounting, which measures cash and all other financial assets that can readily be converted to cash. The governmental fund statements provide a detailed short-term view of the City’s general government operations and the basic service it provides. Governmental fund information helps determine whether there are more or fewer financial resources that can be spent in the near future to finance the City’s programs. The differences of results in the Governmental Fund financial statements to those in the Government-Wide financial statements are explained in a reconciliation following each Governmental und 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, the Statement of Revenues, Expenses and Changes in Fund Net Position and Statement of Cash Flows. 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. A FINANCIAL ANALYSIS OF THE CITY AS A WHOLE Net Position As noted earlier, net position may serve over time as a useful indicator of a government’s financial position. In the case of the City, assets and deferred outflows exceeded liabilities and deferred inflows by $29,440,795 at the close of the most recent fiscal year. 11  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2019 TABLE 1 NET POSITION (In Thousands) Gove rnmental % Inc. Business-Type % Inc. % Inc. Activities (Dec.) Activities (Dec.) Total (Dec.) Restated, Restated, Restated, 2019 2018 2019 2018 2019 2018 Current assets $ 12,936 $ 12,621 2% $ 20,506 $ 12,657 62% $ 33,442 $ 25,278 32% Capital assets, net 25,043 26,004 -4% 19,910 20,171 -1% 44,953 46,175 -3% Total assets 37,979 38,625 -2% 40,416 32,828 23% 78,395 71,453 10% Deferred outflows 2,876 2,386 21% 636 721 -12% 3,512 3,107 13% Current liabilities 3,855 4,027 -4% 4,169 3,663 14% 8,024 7,690 4% Non-current liabilities 27,409 28,738 -5% 14,598 8,728 67% 42,007 37,466 12% Total liabilities 31,264 32,765 -5% 18,767 12,391 51% 50,031 45,156 11% Deferred inflows 1,478 931 59% 957 454 111% 2,435 1,385 76% Net position Net investment capital assets 15,786 16,409 -4% 7,232 14,500 -50% 23,018 30,909 -26% Restricted 1,677 1,730 -3% 817 801 2% 2,494 2,531 -1% Unrestricted (deficit) (9,350) (10,824) 14% 13,279 5,403 146% 3,929 (5,421) -172% Total net position $ 8,113 $ 7,315 11% $ 21,328 $ 20,704 3% $ 29,441 $ 28,019 5% The largest portion of the City’s net position reflects its net investment capital assets (e.g., land, buildings, machinery, and equipment); less any related debt used to acquire those assets that are still outstanding. For 2019, the net investment in capital assets amounted to $23,017,341. The City uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City’s investment in capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. A major portion of the City’s net position, $2,493,876 also represents resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted net position is amounting to $3,929,578. Explanations of significant changes displayed in Table 1 are as follows: Governmental Activities: Deferred inflows – Increase of $.5 million (59%) due to changes in pension and OPEB elements. Business-Type Activities: Deferred inflows – Increases of $0.5 million (111%) due to changes in pension and OPEB elements. Changes in Net Position For the year ended June 30, 2019, net position of the primary government changed as follows: 12  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2019 TABLE 2 CHANGES IN NET POSITION (In Thousands) Governmental % Inc. Business-Type % Inc. % Inc. Activities (Dec.) Activities (Dec.) Total (Dec.) 2019 2018 2019 2018 2019 2018 Revenues Charges for service $ 1,070 $ 1,073 0% $ 25,628 $ 25,545 0% $ 26,698 $ 26,618 0% Operating grants and contributions 1,260 874 44% - 12 100% 1,260 886 42% Capital grants and contributions 27 - 100% 550 629 -13% 577 629 -8% Taxes 7,520 7,405 2% - - - 7,520 7,405 2% Investment income 23 17 35% 149 36 314% 172 53 225% M iscellaneous 198 80 148% - - 0% 198 80 148% Total revenues 10,098 9,449 7% 26,327 26,222 0% 36,425 35,671 2% Expenses General government 1,837 2,170 -15% - - - 1,837 2,170 -15% Public safety 4,930 5,414 -9% - - - 4,930 5,414 -9% Streets 3,618 2,916 24% - - - 3,618 2,916 24% Culture and recreation 1,452 1,574 -8% - - - 1,452 1,574 -8% Economic development 610 705 -13% - - - 610 705 -13% Interest on debt 845 781 8% - - - 845 781 8% Water - - - 2,407 1,843 31% 2,407 1,843 31% Wastewater - - - 1,439 1,484 -3% 1,439 1,484 -3% Sanitation - - - 1,723 1,776 -3% 1,723 1,776 -3% Electric - - - 15,768 15,354 3% 15,768 15,354 3% Airport - - - 374 440 -15% 374 440 -15% Total expenses 13,292 13,560 -2% 21,711 20,897 4% 35,003 34,457 2% Excess (deficiency) before transfers (3,194) (4,111) 22% 4,616 5,325 -13% 1,422 1,214 17% Transfers 3,992 5,824 -31% (3,992) (5,824) -31% - - - Change in net position $ 798 $ 1,713 -53% $ 624 $ (499) -225% $ 1,422 $ 1,214 17% Explanations of significant changes in Table 2 are as follows: Governmental Activities: Streets – Increase of $.7 million (24%) due to an increase in purchase of equipment. Transfers – Decrease of $1.8 million (31%) due to decreased operational funding from other funds. Business-Type Activities: Capital grants and contributions – decrease of $79,266 (13%) due to a decrease in airport grants. Transfers – Decrease of $1.8 million (31%) due to decreased operational funding to other funds. 13  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2019 Governmental Activities To aid in the understanding of the Statement of Activities some additional explanation is given. Of particular interest is the format that is significantly different than a typical Statement of Revenues, Expenses, 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 all taxes are classified as general revenue even if restricted for a specific purpose. TABLE 3 Net Revenue (Expense) of Governmental Activities (In Thousands) Net Revenue Total Expense % Inc. (Expense) % Inc. of S ervices (Dec.) of S ervices (Dec.) 2019 2018 2019 2018 General government $ 1,837 $ 2,170 -15% $ (1,555) $ (1,882) -17% Public safety 4,931 5,414 -9% (3,932) (4,534) -13% Streets 3,618 2,916 24% (3,401) (2,690) 26% Culture, parks and recreation 1,452 1,574 -8% (883) (1,329) -34% Economic development 610 705 -13% (318) (396) -20% Interest on long-term debt 845 781 -8% (845) (781) 8% Total $ 13,293 $ 13,560 -2% ($10,934) $ (11,612) -6% For the year ended June 30, 2019 total expenses for governmental activities amounted to approximately $13.3 million which was a decrease from the prior year of 2%. See Table 2 above for explanations of changes. Business-type Activities TABLE 4 Net Revenue (Expense) of Business-Type Activities (In Thousands) Net Revenue Total Expense % Inc. (Expense) % Inc. of S ervices Dec. of S ervices Dec. 2019 2018 2019 2018 Water $ 2,407 $ 1,843 31% $ 297 $ 677 -56% Wastewater 1,439 1,484 -3% 521 336 55% Sanitation 1,723 1,776 -3% 892 824 8% Electric 15,768 15,354 3% 2,454 3,135 -22% Airport 374 440 -15% 303 317 -4% Total $ 21,711 $ 20,897 4% $ 4,467 $ 5,289 -16% 14  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2019 The City’s business-type activities include utility services for water, electric, wastewater, sanitation and airport. In reviewing the business-type activities net (expense)/revenue, the following highlights should be noted:  Total business-type activities reported net revenues of $4,466,953 for the year ended June 30, 2019. A FINANCIAL ANALYSIS OF THE CITY’S FUNDS As the City completed its 2019 fiscal year, the governmental funds reported a combined fund balance of $8.4 million or a 4.6% increase of approximately $369,000. The enterprise funds reported combined net position of $20.5 million or a 12.9% increase from 2018. Fund Balance/Net Position Governmental Funds Proprietary Funds Restricted $ 1,722,676 Net investment in capital assets $ 7,231,645 Committed 2,044,759 Restricted for debt service and other 817,112 Assigned 4,544,556 Unrestricted 12,443,768 Unassigned 53,227 Total Fund Balance $ 8,365,218 Total Net Position $ 20,492,525 General Fund Budgetary Highlights For budgetary reporting purposes, the General Fund reported revenues above estimates of $271,033 or 3.6%, while expenditures were under the final appropriations by $959,457 or 9.7%. CAPITAL ASSET AND DEBT ADMINISTRATION Capital Assets At the end of June 30, 2019, the City had $45.0 million invested in capital assets, net of depreciation, including police and fire equipment, buildings, park facilities, electrical infrastructure, water lines and sewer lines. (See table below). This represents a net decrease of $1.2 million or 2.6% from the prior year. 15  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2019 TABLE 5 Capital Assets (In Thousands) (Net of accumulated depreciation) Governmental Business-Type Activities Activities Total Restated Restated Restated 2019 2018 2019 2018 2019 2018 Land $ 4,601 $ 4,601 $ 755 $ 751 5,356 $ 5,352 Buildings 6,557 6,914 8,739 9,232 15,296 16,146 M achinery, furniture and equipment 2,169 2,252 4,313 4,111 6,482 6,363 Infrastructure 11,241 12,062 4,367 4,534 15,608 16,596 Construction in progress 475 176 1,736 1,543 2,211 1,719 Totals $ 25,043 $ 26,005 $ 19,910 $ 20,171 $ 44,953 $ 46,176 This year’s more significant capital asset additions placed into service included: 150 Power Transformers $512,647 HWY 125 Water line replacement $269,794 Honors Plaza and Robertson field $250,810 180 Transmitters $241,938 2019 Mack Truck $197,131 See Note 6 to the financial statements for more detail information on the City’s capital assets and changes therein. Long- Term Debt At year-end, the City had $32.4 million in long-term debt outstanding which represents a $6.3 million increase, or 24%, from the prior year. The City’s changes in long-term debt by type of debt are as follows: TABLE 6 Long-Term Debt (In Thousands) Governmental Business-Type Activities Activities Total 2019 2018 2019 2018 2019 2018 Accrued absences $ 525 $ 519 $ 126 $ 144 $ 651 $ 663 Revenue Bonds 18,375 18,815 8,615 810 26,990 19,625 Bond Premium (Discount) 206 226 (3) (4) 203 222 Notes Payable- Direct borrowing - - 3,483 4,114 3,483 4,114 Capital Leases 506 697 583 753 1,089 1,450 Totals $ 19,612 $ 20,257 $ 12,804 $ 5,817 $ 32,416 $ 26,074 See Note 8 to the financial statements for more detail information on the City’s long-term debt and changes therein. 16  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2019 The Upcoming Year The City will spend the upcoming year completing projects with an emphasis on expanding utility services; implementing the approved comprehensive plan; street and additional utility improvements; and installing a splash pad. The FY 2019-2020 budget will remain level with the exception of the continued electric, water, and wastewater utility rate increases that will fund much needed electric, water, and wastewater system improvements to include substation upgrades, line replacement, and utility expansion for an economic development project. The City expects to continue to be impacted by a struggling economy but continues building financial capacity by expanding utility services thereby improving budget stabilization for the future. The City will also continue revenue bond and loan projects on various utility improvements such as substation and water/wastewater line replacement. Utility funds will continue to repay the debts. The primary sources of revenue for the City of Miami are sales tax and utility (water/wastewater and electric) revenue. Sales tax requires a vote of the people and cannot be adjusted without the people’s consent. The addition of online sales tax collections has positively impacted our budget capacity to some degree. In addition, the City continues to look for ways to enhance our revenue base that will assist in the completion of major infrastructure and development projects. Contacting the City’s Financial Management This report is designed to provide our citizens, taxpayers, customers and creditors with an understanding of the City’s finances and to demonstrate the City’s accountability for the resources it receives. If you have questions about this report or need additional financial information, contact: City of Miami PO Box 1288 Miami, OK 74355-1288 17  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2019 BASIC FINANCIAL STATEMENTS – GOVERNMENT-WIDE 18  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2019 Statement of Net Position– June 30, 2019 Discretely Presented Primary Government Component Units Governmental Business-type Activities Activities Total ASSETS Cash and equivalents $ 10,648,485 $ 13,776,644 $ 24,425,129 $ 482,028 Investments 153,265 1,612,896 1,766,161 - Interest receivable - 809 809 - Accounts receivable, net 261,342 3,445,023 3,706,365 - Due from other governments 1,204,477 - 1,204,477 - Other receivables 949,520 31,718 981,238 74,733 Internal balances (475,543) 475,543 - - Inventory - 1,036,369 1,036,369 - Net pension asset 194,728 - 194,728 - Capital Assets Land and construction in progress 5,076,091 2,490,655 7,566,746 351,738 Other capital assets, net of depreciation 19,967,039 17,419,017 37,386,056 9,078,569 Total assets 37,979,404 40,288,674 78,268,078 9,987,068 DEFERRED OUTFLOWS: Deferred amounts related to pensions 2,084,887 594,849 2,679,736 - Deferred amounts related to OPEB 332,652 40,935 373,587 - Deferred amount on refunding 458,624 - 458,624 - Deferred amount related to GRDA settlement - 127,012 127,012 - Total deferred outflows of resources 2,876,163 762,796 3,511,947 - LIABILITIES Accounts payable and accrued liabilities 1,799,493 2,447,398 4,246,891 45,387 Claims liability 1,310,623 - 1,310,623 - Accrued interest payable 45,912 139,761 185,673 - Long-term liabilities Due within one year 699,533 1,581,251 2,280,784 391,950 Due in more than one year 27,408,646 14,598,174 42,006,820 - Total liabilities 31,264,207 18,766,584 50,030,791 437,337 DEFERRED INFLOWS: Deferred amounts related to pensions 1,103,059 507,356 1,610,415 - Deferred amounts related to OPEB 375,411 449,625 825,036 - Total deferred inflows of resources 1,478,470 956,981 2,435,451 - NET POSITION: Net investment in capital assets 15,785,696 7,231,645 23,017,341 9,040,820 Restricted 1,676,764 817,112 2,493,876 - Unrestricted (9,349,570) 13,279,148 3,929,578 508,911 Total net position $ 8,112,890 $ 21,327,905 $ 29,440,795 $ 9,549,731 See accompanying notes to the basic financial statements. 19  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2019 Statement of Activities –Year Ended June 30, 2019 Net (Expense) Revenue and Changes in Net Position Program Revenue Primary Government Discretely Operating Capital Grants Presented Charges for Grants and and Governmental Business-type Component Functions/Programs Expenses Services Contributions Contributions Activities Activities Total Units Primary government Governmental Activities General Government $ 1,837,358 $ 123,524 $ 158,439 $ - $ (1,555,395) $ - $ (1,555,395) $ - Public Safety 4,929,798 387,217 583,667 27,374 (3,931,540) - (3,931,540) - Public Works and Streets 3,617,850 99,461 117,348 - (3,401,041) - (3,401,041) - Culture and Recreation 1,452,361 188,498 380,412 - (883,451) - (883,451) - Economic Development 610,059 271,566 20,000 - (318,493) - (318,493) - Interest on long-term Debt 844,505 - - - (844,505) - (844,505) - Total governmental activities 13,291,931 1,070,266 1,259,866 27,374 (10,934,425) - (10,934,425) - Business-type activities Water 2,406,885 2,704,185 - - - 297,300 297,300 - Wastewater 1,439,146 1,960,335 - - - 521,189 521,189 - Sanitation 1,722,549 2,614,242 - - - 891,693 891,693 - Electric 15,767,752 18,221,599 - - - 2,453,847 2,453,847 - Airport 374,621 127,591 - 549,954 - 302,924 302,924 - Total business-type activities 21,710,953 25,627,952 - 549,954 - 4,466,953 4,466,953 - Total primary government $ 35,002,884 $ 26,698,218 $ 1,259,866 $ 577,328 (10,934,425) 4,466,953 (6,467,472) - Component Units Culture and Recreation $ 719,843 $ 507,369 $ 326,350 $ - 113,876 Economic Development 81,066 107,515 - - 26,449 Total component units $ 800,909 $ 614,884 $ 326,350 $ - 140,325 General revenues: Taxes: Sales and use taxes 7,003,720 - 7,003,720 - Property tax 16,032 - 16,032 - Franchise and public service taxes 313,512 - 313,512 - Hotel/motel taxes 186,483 - 186,483 - Investment income 22,767 148,948 171,715 122 Miscellaneous 197,684 (99) 197,585 - Transfers - internal activity 3,992,132 (3,992,132) - - Total general revenues and transfers 11,732,330 (3,843,283) 7,889,047 122 Change in net position 797,905 623,670 1,421,575 140,447 Net position - beginning restated 7,314,985 20,704,235 28,019,220 9,409,284 Net position - ending $ 8,112,890 $ 21,327,905 $ 29,440,795 $ 9,549,731 See accompanying notes to the basic financial statements. 20  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2019 BASIC FINANCIAL STATEMENTS - GOVERNMENTAL FUNDS 21  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2019 Governmental Funds Balance Sheet - June 30, 2019 Street and Other Total Stadium Project Governmental Governmental General Fund Fund Funds Funds ASSETS Cash and cash equivalents $ 980,274 $ 763,739 $ 7,033,292 $ 8,777,305 Investments 25,435 - - 25,435 Receivables: Accounts receivable 198,470 - 62,872 261,342 Due from other funds 705,085 - 45,061 750,146 Due from other governments and entities 726,768 139,057 338,652 1,204,477 Other receivables 12,500 - - 12,500 Total assets $ 2,648,532 $ 902,796 $ 7,479,877 $ 11,031,205 LIABILITIES, DEFERRED INFLOWS AND FUND BALANCES Liabilities: Accounts payable and accrued liabilities $ 163,754 $ 4,450 $ 1,337,756 $ 1,505,960 Wages payable 281,765 - 11,768 293,533 Due to other funds 261,198 - 129,111 390,309 Total liabilities 706,717 4,450 1,478,635 2,189,802 DEFERRED INFLOWS OF RESOURCES Deferred revenue 146,835 - 329,350 476,185 Fund balances: Restricted 23,213 898,346 801,117 1,722,676 Commited - - 2,044,759 2,044,759 Assigned 1,419,452 - 3,125,104 4,544,556 Unassigned (deficit) 352,315 - (299,088) 53,227 Total fund balances 1,794,980 898,346 5,671,892 8,365,218 Total liabilities, deferred inflows and fund balances $ 2,648,532 $ 902,796 $ 7,479,877 $ 11,031,205 See accompanying notes to the basic financial statements. 22  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2019 Governmental Funds Statement of Changes in Fund Balances – Year Ended June 30, 2019 Street and Other Total Stadium Governmental Governmental General Fund Project Fund Funds Funds REVENUES Taxes $ 5,648,999 $ 1,148,266 $ 571,796 $ 7,369,061 Intergovernmental 789,373 - 212,542 1,001,915 Charges for services 246,815 - 214,207 461,022 Fines and forfeitures 324,637 - - 324,637 Licenses and permits 74,655 - - 74,655 Investment income 17,126 5,104 537 22,767 Miscellaneous 417,100 - 145,335 562,435 Total revenues 7,518,705 1,153,370 1,144,417 9,816,492 EXPENDITURES Current: General government 1,569,465 - 96,693 1,666,158 Public Safety 5,299,386 - 124,133 5,423,519 Public works and streets 1,356,458 199,312 185,872 1,741,642 Culture and recreation 1,150,106 - 564,695 1,714,801 Economic development 635,033 - - 635,033 Capital Outlay - - 1,621,159 1,621,159 Debt Service: Principal 181,383 440,000 8,969 630,352 Interest and other charges 24,669 559,838 1,889 586,396 Total expenditures 10,216,500 1,199,150 2,603,410 14,019,060 Excess (deficiency) of revenues over expenditures (2,697,795) (45,780) (1,458,993) (4,202,568) OTHER FINANCING SOURCES (USES) Transfers in 8,754,852 1,162,925 1,337,149 11,254,926 Transfers out (5,424,943) (1,157,120) (142,779) (6,724,842) Total other financing sources and uses 3,329,909 5,805 1,194,370 4,530,084 Net change in fund balances 632,114 (39,975) (264,623) 327,516 Fund balances - beginning, restated 1,162,866 938,321 5,936,515 8,037,702 Fund balances - ending $ 1,794,980 $ 898,346 $ 5,671,892 $ 8,365,218 See accompanying notes to the basic financial statements. 23  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2019 Reconciliation of Governmental Funds and Government-Wide Financial Statements: Total fund balance, governmental funds $ 8,365,218 Amounts reported for governmental activities in the Statement of Net Position are different because: Capital assets used in governmental activities are not current financial resources and therefore are not reported in this fund financial statement, but are reported in the governmental activities of the Statement of Net Position. 25,043,130 Certain long-term assets are not available to pay for current fund liabilities and, therefore, are deferred in the funds. 476,185 Certain other assets and long-term elements are not available to pay current period expenditures and are classified as deferred outflows and are not reported in this fund financial statement, but are reported in the governmental activities of the Statement of Net Position. Net pension asset 194,728 Pension related deferred outflows 2,084,887 OPEB related deferred outflows 332,652 Deferred amounts on refunding 458,624 Some liabilities are not due and payable in the current period and they, along with deferred inflows, are not included in the fund financial statement, but are included in the governmental activities of the Statement of Net Position: Capital lease obligations (506,167) Interest payable (45,912) Net pension liability (6,416,401) Pension related deferred inflows (1,103,059) Total OPEB liability (2,079,123) OPEB related deferred inflows (375,411) Accrued compensated absences (525,347) Unamortized debt premium (206,141) Revenue bond payable (18,375,000) Internal service funds are used by management to charge costs of certain activities that benefit multiple funds, such as self-insurance, to individual funds. The net position of the internal service funds are reported in governmental activities: Internal service fund net position 790,027 Net Position of Governmental Activities in the Statement of Net Position $ 8,112,890 See accompanying notes to the basic financial statements. 24  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2019 Changes in Fund Balances – Changes in Net Position Reconciliation: Net change in fund balances - total governmental funds: $ 327,516 Amounts reported for Governmental Activities in the Statement of Activities are different because: Governmental funds report capital outlays as expenditures while governmental activities report depreciation expense to allocate those expenditures over the life of the assets: Capital asset purchases capitalized 733,924 Depreciation expense (1,695,538) In the Statement of Activities, the net cost of pension benefits earned is calculated and reported as pension expense. The fund financial statements report pension contributions as expenditures. This amount represents the difference between pension contributions and calculated pension expense. 1,029,593 Revenues in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds: Change in deferred revenue 289,141 Bond proceeds provide current financial resources to governmental funds, but issuing debt increases long-term liabilities in the Statement of Net Position. Repayment of debt principal is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the Statement of Net Position: Capital lease principal payments 190,352 Revenue bond principal payments 440,000 Some expenses reported in the statement of activities do not require the use of current financial resources and these are not reported as expenditures in governmental funds: Change in accrued interest payable 733 Change in accrued compensated absences (6,600) Change in total OPEB liability (134,550) Change in amortization of bond premium 20,276 Change in amortization of unamortized gain/loss (88,766) Internal service fund activity is reported as a proprietary fund in fund financial statements, but certain net revenues are reported in governmental activities on the Statement of Activities: Total change in net position for internal service funds (308,176) Change in net position of governmental activities $ 797,905 See accompanying notes to the basic financial statements. 25  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2019 BASIC FINANCIAL STATEMENTS - PROPRIETARY FUNDS 26  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2019 Proprietary Funds Statement of Net Position - June 30, 2019 Enterprise Funds Miami Special Utility Internal Authority Airport Fund Total Service Funds ASSETS Current assets: Cash and cash equivalents $ 5,087,225 $ 35 $ 5,087,260 $ 1,871,180 Cash and cash equivalents, restricted 8,253,862 - 8,253,862 - Investments 1,420,451 - 1,420,451 127,830 Accounts receivable, net 3,409,262 35,761 3,445,023 - Other receivable 436 31,282 31,718 937,020 Accrued interest receivable 809 - 809 - Inventory 1,004,129 32,240 1,036,369 - Due from other funds 28,286 30,128 58,414 - Total current assets 19,204,460 129,446 19,333,906 2,936,030 Non-current assets: Cash and cash equivalents, restricted 435,522 - 435,522 - Investments, restricted 192,445 - 192,445 - Capital assets: Land, construction in progress, and water rights 1,181,978 1,308,677 2,490,655 - Other capital assets, net of accumulated depreciation 14,410,136 3,008,881 17,419,017 - Total non-current assets 16,220,081 4,317,558 20,537,639 - Total assets 35,424,541 4,447,004 39,871,545 2,936,030 DEFERRED OUTFLOW OF RESOURCES Deferred amounts related to pensions 587,990 6,859 594,849 - Deferred amounts related to OPEB 40,935 - 40,935 - Deferred amounts related to GRDA settlement 127,012 - 127,012 - Total deferred outflow of resources 755,937 6,859 762,796 - LIABILITIES Current liabilities: Accounts payable and accrued liabilities 2,320,506 5,741 2,326,247 - Claims liability - - - 1,310,623 Wages payable 119,276 1,875 121,151 - Due to other funds 356,459 61,792 418,251 - Accrued interest payable 139,761 - 139,761 - Accrued compensated absences 12,544 91 12,635 - Refundable deposits 41,697 - 41,697 - Capital lease payable 270,326 - 270,326 - Revenue bond payable 615,000 - 615,000 - Notes payable 641,593 - 641,593 - Total current liabilities 4,517,162 69,499 4,586,661 1,310,623 Non-current liabilities: Accrued compensated absences 112,899 816 113,715 - Net pension liability 1,919,621 - 1,919,621 - Total OPEB liability 1,039,561 - 1,039,561 - Refundable deposits 374,115 - 374,115 - Capital lease payable 312,957 - 312,957 - Revenue bond payable 7,996,433 - 7,996,433 - Notes payable, net 2,841,772 - 2,841,772 - Total non-current liabilities 14,597,358 816 14,598,174 - Total liabilities 19,114,520 70,315 19,184,835 1,310,623 DEFERRED INFLOW OF RESOURCES Deferred amounts related to pensions 483,582 23,774 507,356 - Deferred amounts related to OPEB 449,625 - 449,625 - Total deferred inflow of resources 933,207 23,774 956,981 - NET POSITION Net investment in capital assets 2,914,087 4,317,558 7,231,645 - Restricted for debt service 817,112 - 817,112 - Unrestricted (deficit) 12,401,552 42,216 12,443,768 1,625,407 Total net position $ 16,132,751 $ 4,359,774 20,492,525 $ 1,625,407 Some amounts reported for business-type activities in the Statement of Net Position are different because certain internal service fund balances are included with business-type activities and $ 835,380 reported as interfund balances Total net position per Government-Wide financial statements $ 21,327,905 See accompanying notes to the basic financial statements. 27  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2019 Proprietary Funds Statement of Changes in Net Position - Year Ended June 30, 2019 Enterprise Funds Miami Special Utility Internal Service Authority Airport Fund Total Fund REVENUES Charges for services $ 24,693,752 $ 127,454 $ 24,821,206 $ 1,920,585 Fees, licenses and permits 134,539 - 134,539 - Miscellaneous 649,041 - 649,041 (73,102) Total operating revenues 25,477,332 127,454 25,604,786 1,847,483 OPERATING EXPENSES Personal services 3,675,119 38,333 3,713,452 - Materials and supplies 11,743,957 61,647 11,805,604 - Other services and charges 4,135,885 38,613 4,174,498 399,060 Insurance claims and expense - - - 1,135,741 Depreciation expense 1,523,984 226,028 1,750,012 - Total operating expenses 21,078,945 364,621 21,443,566 1,534,801 Operating income (loss) 4,398,387 (237,167) 4,161,220 312,682 NON-OPERATING REVENUES (EXPENSES) Investment income 148,948 - 148,948 9,812 Miscellaneous 34,625 137 34,762 - Loss on sale of capital assets - (10,000) (10,000) - Interest expense and fiscal charges (391,752) - (391,752) - Total non-operating revenue (expenses) (208,179) (9,863) (218,042) 9,812 Income (loss) before contrbutions and transfers 4,190,208 (247,030) 3,943,178 322,494 Contributed capital revenue 29,952 549,954 579,906 - Transfers in 6,578,421 79,986 6,658,407 - Transfers out (10,680,491) - (10,680,491) (508,000) Change in net position 118,090 382,910 501,000 (185,506) Total net position - beginning restated 16,014,661 3,976,864 19,991,525 1,810,913 Total net position - ending $ 16,132,751 $ 4,359,774 $ 20,492,525 $ 1,625,407 Change in net position above 501,000 Some amounts reported for business-type activities in the Statement of Activities are difference because the net revenue of certain internal service funds is reported with business-type activities 122,670 Change in Business-Type Activities in Net Position per Government-Wide Financial Statements $ 623,670 See accompanying notes to the basic financial statements. 28  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2019 Proprietary Funds Statement of Cash Flows - Year Ended June 30, 2019 Enterprise Funds Miami Special Utility Internal Service Authority Airport Fund Total Fund CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers $ 25,756,431 $ 163,678 $ 25,920,109 $ 2,634,043 Payments to suppliers (15,548,812) (395,770) (15,944,582) (399,130) Payments to employees (3,891,753) (38,655) (3,930,408) - Receipts from other funds 17,725 (165,693) (147,968) - Payments to other funds 481,584 - 481,584 - Receipts of customer meter deposits 219,365 - 219,365 - Refunds of customer meter deposits (200,845) - (200,845) - Claims and judgments paid - - - (2,203,101) Net cash provided by (used in) operating activities 6,833,695 (436,440) 6,397,255 31,812 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Transfers from other funds 6,578,421 79,986 6,658,407 - Transfers to other funds (10,680,491) - (10,680,491) (508,000) Net cash provided by (used in) noncapital financing activities (4,102,070) 79,986 (4,022,084) (508,000) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Capital assets purchased (1,079,289) (193,500) (1,272,789) - Principal paid on debt (1,192,465) - (1,192,465) - Proceeds of capital grants - 549,954 549,954 - Proceeds from debt 8,000,000 - 8,000,000 - Note issuance cost paid - - - - Interest and fiscal agent fees paid on debt (280,673) - (280,673) - Net cash provided by capital and related financing activities 5,447,573 356,454 5,804,027 - CASH FLOWS FROM INVESTING ACTIVITIES Sale (Purchase) of investments (22,031) - (22,031) 498,188 Interest and dividends 148,947 - 148,947 9,812 Net cash provided by investing activities 126,916 - 126,916 508,000 Net increase in cash and cash equivalents 8,306,114 - 8,306,114 31,812 Balances - beginning of year 5,470,495 35 5,470,530 1,839,368 Balances - end of year $ 13,776,609 $ 35 $ 13,776,644 $ 1,871,180 Reconciliation to Statement of Net Position: Cash and cash equivalents $ 5,087,225 $ 35 $ 5,087,260 $ 1,871,180 Restricted cash and cash equivalents - current 8,253,862 - 8,253,862 - Restricted cash and cash equivalents - noncurrent 435,522 - 435,522 - Total cash and cash equivalents, end of year $ 13,776,609 $ 35 $ 13,776,644 $ 1,871,180 Reconciliation of operating income (loss) to net cash provided by (used in) operating activities: Operating income $ 4,398,387 $ (237,167) $ 4,161,220 $ 312,682 Adjustments to reconcile operating income (loss) to net cash provided by (used in) operating activities: Depreciation expense 1,523,984 226,028 1,750,012 - Other nonoperating revenue 34,625 137 34,762 - Change in assets and liabilities: Receivables, net 236,845 (728) 236,117 786,560 Other receivable 7,629 36,815 44,444 - Due from other funds 481,584 - 481,584 - Inventory (6,243) (4,505) (10,748) - Deferred outflows related to pension 75,461 7,367 82,828 - Deferred outflows related to OPEB 2,436 - 2,436 Accounts payable 337,270 (291,005) 46,265 (70) Claims liability - - - (1,067,360) Due to other funds 17,725 (165,693) (147,968) - Due to employees (12,375) 1,056 (11,319) - Refundable deposits 18,520 - 18,520 - Total OPEB liability (340,530) - (340,530) - Net pension liability (435,365) - (435,365) - Accrued compensated absences (18,397) 907 (17,490) - Deferred inflows related to pension 164,905 (9,652) 155,253 Deferred inflows related to OPEB 347,231 - 347,231 Deferred inflows related to GRDA Settlement 3 - 3 Net cash provided by (used in) operating activities $ 6,833,695 $ (436,440) $ 6,397,255 $ 31,812 Noncash activities: Asset acquired by capital lease $ 197,131 $ - $ 197,131 $ - Asset contributed by others 29,952 - 29,952 - $ 227,083 $ - $ 227,083 $ - See accompanying notes to the basic financial statements. 29  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2019 BASIC FINANCIAL STATEMENTS – DISCRETELY PRESENTED COMPONENT UNITS 30  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2019 Discretely Presented Component Units Combining Statement of Net Position - June 30, 2019 MCFA MDRA MIDA MIPFA Total ASSETS Current assets: Cash and cash equivalents $ 167,394 $ 28,579 $ 174,697 $ 111,358 $ 482,028 Other receivable 74,733 - - - 74,733 Total current assets 242,127 28,579 174,697 111,358 556,761 Non-current assets: Capital assets: Land, construction in progress, and water rights - - 103,517 248,221 351,738 Other capital assets, net of accumulated depreciation 7,988,764 7,574 746,360 335,871 9,078,569 Total non-current assets 7,988,764 7,574 849,877 584,092 9,430,307 Total assets 8,230,891 36,153 1,024,574 695,450 9,987,068 LIABILITIES Current liabilities: Accounts payable and accrued liabilities 28,823 14,784 - 1,780 45,387 Accrued compensated absences - 156 - - 156 Accrued interest on notes payable - - 2,307 - 2,307 Notes payable - - 389,487 - 389,487 Total liabilities 28,823 14,940 391,794 1,780 437,337 NET POSITION Net investment in capital assets 7,988,764 7,574 460,390 584,092 9,040,820 Unrestricted 213,304 13,639 172,390 109,578 508,911 Total net position $ 8,202,068 $ 21,213 $ 632,780 $ 693,670 $ 9,549,731 See accompanying notes to the basic financial statements. 31  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2019 Discretely Presented Component Units Combining Statement of Changes in Net Position - Year Ended June 30, 2019 MCFA MDRA MIDA MIPFA Total REVENUES Charges for services $ 244,421 $ 262,948 $ 59,811 $ 45,536 $ 612,716 Miscellaneous - - 2,168 - 2,168 Total operating revenues 244,421 262,948 61,979 45,536 614,884 OPERATING EXPENSES Personal services 541 106,459 - - 107,000 Materials and supplies 5,009 35,356 250 - 40,615 Other services and charges 81,367 249,428 6,600 13,284 350,679 Depreciation expense 239,157 2,526 20,727 25,600 288,010 Total operating expenses 326,074 393,769 27,577 38,884 786,304 Operating income (loss) (81,653) (130,821) 34,402 6,652 (171,420) NON-OPERATING REVENUES (EXPENSES) Investment income - - 1 121 122 Miscellaneous income 180,634 145,716 - - 326,350 Interest expense and fiscal charges - - (14,605) - (14,605) Total non-operating revenue (expenses) 180,634 145,716 (14,604) 121 311,867 Total net position - beginning 8,103,087 6,318 612,982 686,897 9,409,284 Total net position - ending $ 8,202,068 $ 21,213 $ 632,780 $ 693,670 $ 9,549,731 See accompanying notes to the basic financial statements. 32  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2019 FOOTNOTES TO BASIC FINANCIAL STATEMENTS 33  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2019 Footnotes to the Basic Financial Statements: 1. Financial Reporting Entity In determining the financial reporting entity, the City uses the integrated approach as prescribed by Governmental Accounting Standards Board Statements No. 14 “The Financial Reporting Entity”, and Statement No. 61, “The Financial Reporting Entity: Omnibus”, and includes all component units for which the City is financially accountable/fiscally responsible. The City’s financial reporting entity primary government presentation includes the City of Miami and the certain component units as follows: The City of Miami – that operates the public safety, health and welfare, streets and highways, culture and recreation, and administrative activities. The City of Miami is an incorporated municipality with a population of approximately 13,570 located in northeastern Oklahoma. The City operates under a council-manager form of government with a charter that provides for three branches of government:  Legislative – the governing body includes an elected five-member City Council and Mayor  Executive – the City Manager is the Chief Executive Officer and is appointed by the City Council  Judicial – the Municipal Judge is a practicing attorney appointed by the City Council Blended Component Units (separate legal entities for which the City Council is fiscally responsible, and for which the City Council members serve as the trustees/governing body of the entity): Miami Special Utility Authority (MSUA) – public trust that operates the electric, water, wastewater, and solid waste/sanitation services of the City. Miami Development Authority (MDA) – public trust created to promote the development of housing in Miami. Discretely Presented Component Units (separate legal entities for which the City Council is fiscally responsible, but appoints a separate governing body): Miami Education Facilities Authority (MEFA) – public trust that promotes the development of educational facilities within the city. The trust is currently inactive. Miami Downtown Redevelopment Authority (MDRA) – public trust created to promote the redevelopment of the downtown area. The Authority does not issue separate financial statements. Miami Industrial and Public Facilities Authority (MIPFA) – public trust that promotes the use of facilities in the City of Miami area. The Authority does not issue separate financial statements. Miami Community Facilities Authority (MCFA) – public trust that promotes the development of commerce, housing, recreation, education and public facilities within the city. The Authority does not issue separate financial statements. Miami Industrial Development Authority (MIDA) – public trust that promotes industry in and around the City of Miami. Complete financial statements can be obtained from the office of the City Clerk. MIDA’s fiscal year end is July 31. 34  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2019 Each of these component units listed above are Public Trusts 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 to enable the City Council to delegate certain functions to the governing body (Trustees) of the Authority. In accordance with state law, the City Council must approve, by two-thirds vote, all debt obligations of these public trusts prior to incurring the obligation. 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 for 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. 2. Basis of Presentation and Accounting This annual report is presented in a format that substantially meets the presentation requirements of the Governmental Accounting Standards Board (GASB) in accordance with generally accepted accounting principles. The presentation includes financial statements that communicate the City’s financial condition and changes therein at two distinct levels:  The City as a Whole (a government-wide presentation)  The City’s Funds (a presentation of the City’s major and aggregate non-major funds) Government-Wide Financial Statements: 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, parks and recreation. Sales taxes, franchise fees, fines, and state and federal grants finance most of these activities. Business-type activities – Services where the City charges a fee to customers to help it cover all or most of the cost of these services it provides. The City’s airport, water, sewer, electric and sanitation systems activities are reported here. Discretely presented component units -- Accounts for various activities related to economic development, facility management, facility construction, and downtown development. The Statements of Net Position and Activities are reported on the accrual basis of accounting and economic resources measurement focus. Under the accrual basis of accounting, revenues are recognized when earned and expenses (including depreciation and amortization) are recorded when the liability is incurred or economic asset used. Fund Financial Statements: Governmental Funds: Most of the City’s basic services are reported in governmental funds, which focus on how money flows into and out of those funds and the balances left at year-end that are available for spending. Governmental 35  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2019 funds report their activities on the modified accrual basis of accounting and current financial resources measurement focus that is different from other funds. For example, these funds report the acquisition of capital assets and payments for debt principal as expenditures and not as changes to asset and debt balances. The governmental fund statements provide a detailed short-term view of the City’s general government operations and the basic services it provides. Governmental fund information helps you determine (through a review of changes to fund balance) whether there are more or fewer financial resources that can be spent in the near future to finance the City’s programs. The City’s governmental funds include: Major Funds:  General Fund – accounts for all activities not accounted for in other special-purpose funds. For reporting purposes the General Fund includes the activities of the Municipal Court Account, Drug & Safety Account, Travel Center Account, MCVB & Tourism Account, and Demolition Account. The General Fund’s major funding source is a three cent sales tax, franchise fees, hotel/motel tax, and miscellaneous charges for services.  Street and Stadium Project Fund – is a capital project fund that accounts for a .65 cent sales tax restricted for streets and other capital projects. Aggregated Non-Major Funds (reported as Other Governmental Funds): Special Revenue Funds include the Fishing License Fund, Street and Alley, Drug Forfeiture Fund, Summer Recreation Program, Grant Fund, RFC 07-09 Grant, MDA Housing Construction, and Police Grant. Debt Service Funds – accounts for ad-valorem taxes levied by the City for use in retiring court-assessed judgments, general obligation bonds, and their related interest expenses. Capital Project Funds:  Pool Improvements Fund accounts for recreation fees used to rehabilitate the municipal pool.  Parks Department Projects accounts for general obligation bond proceeds used to acquire, construct, and equip city park and recreation facilities.  Main Street Project accounts for projects related to the revitalization of Main Street.  Capital Improvement Fund accounts for use tax used for city capital projects for various departments.  Cemetery Perpetual Care Fund accounts for cemetery fees that are restricted for capital improvements. The governmental funds are reported on the modified accrual basis of accounting. On the modified accrual basis of accounting, revenues are recorded when earned and measurable and available to pay current financial obligations, while expenditures are recorded when incurred and normally due and payable from current financial resources. The City defines revenue availability as collected within 60 days of period end. The reconciliation of the governmental funds financial statements to the governmental activities presentation in the government-wide financial statements is the result of the use of the accrual basis of accounting and economic resources measurement focus at the government-wide level. 36  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2019 Proprietary Funds: When the City charges customers for the services it provides, these services are generally reported in proprietary funds. Proprietary funds include 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 to account for business-like activities provided to other funds or departments of the City. Proprietary funds are reported on the accrual basis of accounting and economic resources measurement focus. For example, proprietary fund capital assets are capitalized and depreciated and principal payments on long- term debt are recorded as a reduction to the liability. The City’s proprietary funds include the following: Enterprise Funds Major Funds:  Miami Special Utility Authority (MUSA) that accounts for the activities of the public trust in providing water, sewer, electric, and sanitation/solid waste services to the public.  Airport Fund accounts for activities of the municipal airport. Internal Service Funds (combined for reporting purposes)  Group Insurance Fund that accounts for the cost of providing various group health and life insurance services to other funds and departments of the City.  Workers Compensation Fund that accounts for the cost of providing workers compensation insurance to the other funds and departments of the City.  Unemployment Compensation Reimbursement that accounts for the cost of providing unemployment benefits. New Accounting Pronouncements Adopted in Fiscal Year 2019: The City adopted the following new accounting pronouncement during the year ended June 30, 2019: GASB Statement No. 83, Certain Asset Retirement Obligations – GASB No. 83 was issued in December 2016, under this statement a government that has legal obligations to perform future asset retirement activities related to its tangible capital assets is required to recognize a liability and a corresponding deferred outflow of resources. The Statement identifies the circumstances that trigger the recognition of these transactions. The Statement also requires the measurement of an asset retirement obligation to be based on the best estimate of the current value of outlays expected to be incurred while the deferred outflow of resources associated with the asset retirement obligation will be measured at the amount of the corresponding liability upon initial measurement and generally recognized as an expense during the reporting periods that the asset provides service. The Statement requires disclosures including a general description of the asset retirement obligation and associated tangible capital assets; the source of the obligation to retire the assets; the methods and assumptions used to measure the liability; and other relevant information. See Note 15. Commitments and Contingencies for additional information. GASB Statement 88, Certain Disclosures Related to Debt – GASB No. 88 was issued April 2018, the primary objective of this Statement is to improve the information that is disclosed in the notes to government financial statements related to debt, including direct borrowings and direct placements. It also clarifies which liabilities governments should include when disclosing information related to debt. It 37  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2019 defines debt for purposes of disclosure in the notes to financial statements as a liability that arises from a contractual obligation to pay cash (or other assets that may be used in lieu of cash) in one or more payments to settle an amount that is fixed at the date of the contractual obligation is established. This Statement requires that additional essential information related to debt be disclosed in notes to financial statements, including unused lines of credit; assets pledged as collateral for the debt; and terms specified in debt agreements related to significant events of default with finance-related consequences, significant termination events with finance-related consequences, and significant subjective acceleration clauses. This Statement also requires that existing and additional information be provided for direct borrowings and direct placements of debt separately from other debt. 3. Cash and Cash Equivalents, Deposits and Investments Cash and cash equivalents includes all demand and savings accounts, certificates of deposit or short-term investments with an original maturity of three months or less, and money market investments. Trust account investments in open-ended mutual fund shares are also considered cash equivalents. Investments consist of long-term certificates of deposits and government money market funds. Certificates of deposit are reported at cost. Deposits and Investments Risks The City of Miami primary government and component units are governed by the deposit and investment limitations of state law and trust indentures. The deposits and investments held at June 30, 2019 by these entities are as follows: Maturities in Years Fair Credit On Less T ype Value Rating Demand T han One Demand deposits $ 15,470,638 N/A $ 15,470,638 $ - Cash on hand 3,345 N/A 3,345 - T ime deposits 1,766,161 N/A - 1,766,161 Money Market Funds 8,951,146 Not rated - 8,951,146 Sub-T otal $ 26,191,290 $ 15,473,983 $ 10,717,307 Re conciliation to Financial State me nts: Cash and cash equivalents $ 24,425,129 Investments 1,766,161 $ 26,191,290 GASB Statement No. 72, Fair Value Measurement and Application, established a hierarchy based on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs. The City has the following recurring fair value measurements as of June 30, 2019: • Money Market Mutual Funds of $8,951,146 were valued using quoted market prices (Level 1 inputs). 38  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2019 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. The City’s policy as it relates to custodial credit risk is to secure its uninsured deposits with collateral, valued at no more than market value, at least at a level of 102% of the uninsured deposits and accrued interest thereon. The City’s policy limits acceptable collateral to U.S. Treasury securities, federally insured obligations, or direct debt obligations of municipalities, counties, and school districts in Oklahoma. Also, 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. At June 30, 2019, the City was not exposed to custodial credit risk. Component Unit: The bank deposits of the MDRA component unit of $28,579 at June 30, 2019 were fully insured by the F.D.I.C. The bank deposits of the MCFA component unit of $167,394 at June 30, 2019 were fully insured by the F.D.I.C. The bank deposits of the MIPFA component unit of $111,358 at June 30, 2019 were fully insured by the F.D.I.C. The bank deposits of the MIDA component unit of $174,697 at June 30, 2019 were fully insured by the F.D.I.C. Investment Credit Risk – The City’s investment policy limits investments, excluding retirement trust fund investments, to the following: a. Obligations of the U. S. Government, its agencies and instrumentalities; b. Collateralized or insured non-negotiable certificates of deposit or other evidences of deposit that are either insured or secured with acceptable collateral with an in-state financial institution, and fully insured deposits in out-of-state institutions; c. Insured or fully collateralized negotiable certificates of deposit; d. Repurchase agreements that have underlying collateral consisting of those items specified in paragraph a above; and e. Money market funds regulated by the SEC and in which investments consist of the investments mentioned in the previous paragraph a. Investment credit risk is the risk that an issuer or other counterpart to an investment will not fulfill its obligations. The City has no formal policy limiting investments based on credit rating, but discloses any such credit risk associated with their investments by reporting the credit quality ratings of investments in debt securities as determined by nationally recognized statistical rating organizations—rating agencies—as of the year end. Unless there is information to the contrary, obligations of the U.S. government or obligations explicitly guaranteed by the U.S. government are not considered to have credit risk and do not require disclosure of credit quality. 39  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2019 Investment Interest Rate Risk – Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an investment. The City discloses its exposure to interest rate risk by disclosing the maturity dates of its various investments by date range. As noted in the schedule of deposits and investments above, at June 30, 2019, the investments held by the City mature between 2019 through 2020. 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). No concentration of credit risk existed as of June 30, 2019. Restricted Cash and Investments The amounts reported as restricted assets of the Enterprise Funds on the Statement of Net Position are comprised of amounts held by the MSUA Enterprise Fund in accounts for the Oklahoma Water Resources Board promissory notes, 2001 Utility Revenue Bond and other accounts with restricted uses. The restricted assets as of June 30, 2019 are as follows: Cash and cash equivalents: Cash Restircted for Refundable deposits $ 49,524 Money Markets Restricted for Debt Service 8,204,338 $ 8,253,862 Cash and cash equivalents, noncurrent: Money Markets Restricted for Debt Service $ 434,327 Cash Restircted for Refundable deposits 1,195 $ 435,522 Investments: Refundable deposits $ 192,445 $ 192,445 4. Receivables Material receivables in the governmental fund types and the governmental activities include revenue accruals such as court fines and economic development loans. These are reported as Due From Other Governments. Non-exchange transactions collectible but not available are deferred in the fund financial statements. Allowances for uncollectible accounts receivable are based upon historical trends and the periodic aging of accounts receivable. Business-type activities and the proprietary type fund consist of revenues earned at year-end and not yet received. Billed and unbilled utility accounts receivable comprise the majority of these receivables. Allowances for uncollectible accounts receivable are based upon historical trends and the periodic aging of accounts receivable. 40  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2019 Less: Allowance Net Accounts for Uncollectible Accounts Receivable Accounts Receivable Governmental Activities: T axes 993,409 $ - $ 993,409 Due from other governments 273,940 - 273,940 Court fines 527,563 (350,112) 177,451 Other 970,539 - 970,539 T otal Governmental Activities $ 2,765,451 $ (350,112) $ 2,415,339 Reconciliation to Statement of Net Position: Accounts receivable, net $ 261,342 Due from other governmental agencies 1,204,477 Other receivable 949,520 T otal $ 2,415,339 Business-T ype Activities: Utilities $ 5,346,857 $ (1,901,834) $ 3,445,023 5. Inventories Inventories are valued at average cost. Inventories in the proprietary funds relate to fuel at the airport and material and supplies for the water, wastewater and electric systems. The cost of proprietary funds inventories are recorded as expenses when consumed rather than when purchased. 6. Capital Assets and Depreciation Capital Assets: For the primary government and component units, capital assets are reported at actual or estimated historical cost, net of accumulated depreciation where applicable. Donated capital assets are reported at their fair value at date of donation. Estimated historical cost was used to value the majority of the capital assets acquired prior to June 30, 1992. The capitalization threshold is capital assets with a cost of $5,000 or more. For the year ended June 30, 2019, capital assets balances changed as follows: 41  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2019 Restated Balance at Transfers/ Balance at July 1, 2018 Additions Deductions June 30, 2019 PRIMARY GOVERNMENT: Governmental activities: Capital assets not being depreciated: Land $ 4,601,374 $ - $ - $ 4,601,374 Construction in progress 175,847 335,480 36,610 474,717 Total capital assets not being depreciated 4,777,221 335,480 36,610 5,076,091 Other capital assets: Buildings 22,627,083 39,916 - 22,666,999 Infrastructure 43,399,955 - - 43,399,955 M achinery, furniture and equipment 11,098,459 395,138 145,894 11,347,703 Total other capital assets at historical cost 77,125,497 435,054 145,894 77,414,657 Less accumulated depreciation for: Buildings 15,713,488 396,475 - 16,109,963 Infrastructure 31,337,598 821,246 - 32,158,844 M achinery, furniture and equipment 8,846,888 477,817 145,894 9,178,811 Total accumulated depreciation 55,897,974 1,695,538 145,894 57,447,618 Other capital assets, net 21,227,523 (1,260,484) - 19,967,039 Governmental activities capital assets, net $ 26,004,744 $ (925,004) $ 36,610 $ 25,043,130 Restated Balance at Transfers/ Balance at July 1, 2018 Additions Deductions June 30, 2019 Business-type activities: Capital assets not being depreciated: Land $ 750,531 $ 4,519 $ - $ 755,050 Construction in progress 1,542,512 462,887 269,794 1,735,605 Total capital assets not being depreciated 2,293,043 467,406 269,794 2,490,655 Other capital assets: Buildings and utility infrastructure 21,098,912 - - 21,098,912 M achinery, furniture and equipment 16,783,135 1,017,858 128,348 17,672,645 Infrastructure 20,173,933 284,403 - 20,458,336 Total other capital assets at historical cost 58,055,980 1,302,261 128,348 59,229,893 Less accumulated depreciation for: Buildings and utility infrastructure 11,866,590 493,312 - 12,359,902 M achinery, furniture and equipment 12,672,311 805,712 (118,348) 13,359,675 Infrastructure 15,640,311 450,988 - 16,091,299 Total accumulated depreciation 40,179,212 1,750,012 (118,348) 41,810,876 Other capital assets, net 17,876,768 (447,751) 246,696 17,419,017 Business-type activities capital assets, net $ 20,169,811 $ 19,655 $ (23,098) $ 19,909,672 Depreciation: Depreciable capital assets are depreciated on a straight-line basis over their useful lives. The range of estimated lives by type of assets is as follows:  Buildings 25-50 years  Improvements other than buildings 20-50 years  Utility property and improvements 15-50 years  Infrastructure 15-50 years  Machinery, furniture, and equipment 3–10 years 42  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2019 Depreciation of capital assets is included in total expenses and is charged or allocated to the activities primarily benefiting from the use of the specific asset. Depreciation expense has been allocated as follows: Governmental Activities: General Government $ 258,282 Public Safety 168,248 Streets 891,460 Culture and Recreation 376,948 Economic Development 600 Total $ 1,695,538 Business-Type Activities: Airport $ 226,028 Electric 466,453 Water 378,185 Wastewater 442,989 Sanitation 236,357 Total $ 1,750,012 Capital assets of the component units were: M IDA Balance at Balance at August 1, 2018 Additions Deductions July 31, 2019 MIDA - Discreetly Presented Component unit Capital assets not being depreciated: Land $ 103,517 $ - $ - $ 103,517 Total capital assets not being depreciated 103,517 - - 103,517 Other capital assets: Buildings and utility infrastructure 1,036,353 - - 1,036,353 Less accumulated depreciation for: Buildings and utility infrastructure 269,266 20,727 - 289,993 Other capital assets, net 767,087 (20,727) - 746,360 M IDA capital assets, net $ 870,604 $ (20,727) $ - $ 849,877 M DRA Balance at Balance at July 1, 2018 Additions Deductions June 30, 2019 MDRA - Discreetly Presented Component unit Other capital assets: Buildings 6,500 - - 6,500 M achinery, furniture and equipment 18,756 - - 18,756 Total other capital assets at historical cost 25,256 - - 25,256 Less accumulated depreciation for: Buildings 3,900 650 - 4,550 M achinery, furniture and equipment 11,256 1,876 13,132 Total accumulated depreciation 15,156 2,526 - 17,682 Other capital assets, net 10,100 (2,526) - 7,574 M DRA capital assets, net $ 10,100 $ (2,526) $ - $ 7,574 43  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2019 M IPFA Restated Balance at Balance at July 1, 2018 Additions Deductions June 30, 2019 MIPFA - Discreetly Presented Component unit Capital assets not being depreciated: Land $ 248,221 $ - $ - $ 248,221 Total capital assets not being depreciated 248,221 - - 248,221 Other capital assets: Buildings 570,924 - - 570,924 M achinery, furniture and equipment 162,236 23,350 - 185,586 Total other capital assets at historical cost 733,160 23,350 - 756,510 Less accumulated depreciation for: Buildings 314,587 19,681 - 334,268 M achinery, furniture and equipment 80,452 5,919 - 86,371 Total accumulated depreciation 395,039 25,600 - 420,639 Other capital assets, net 338,121 (2,250) - 335,871 M IPFA capital assets, net $ 586,342 $ (2,250) $ - $ 584,092 M CFA Balance at Balance at July 1, 2018 Additions Deductions June 30, 2019 MCFA - Discreetly Presented Component unit Other capital assets: Buildings 8,600,400 250,809 - 8,851,209 Less accumulated depreciation for: Buildings 623,288 239,157 - 862,445 Other capital assets, net 7,977,112 11,652 - 7,988,764 M CFA capital assets, net $ 7,977,112 $ 11,652 $ - $ 7,988,764 7. Internal and Interfund Balances and Transfers Internal and Interfund Balances: The City’s policy is to eliminate interfund receivable and payables between funds in the Statement of Net Position to avoid the grossing up of balances. Only the residual balances due between governmental and business-type activities are reported as internal balances and then offset in the total column. 44  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2019 Re ceivable Fund Payable Fund Amount Nature of Inte rfund Balance General Fund * Grant Fund $ 90,707 T o cover negative balance in pooled cash General Fund * T ravel center 134,962 T o cover negative balance in pooled cash General Fund * MCVB & T ourism 61,700 T o cover negative balance in pooled cash General Fund * Utility Improvement Fund 269,964 T o cover negative balance in pooled cash General Fund * Airport Fund * 59,944 T o cover negative balance in pooled cash General Fund * Airport Fund * 1,313 Payroll reimbursement General Fund * MSUA * 86,495 Payroll reimbursement Street and Alley Capital Improvement Fund 38,404 Expense reimbursement Capital Improvement Fund General Fund * 6,657 Reclassification Street and Alley T ravel center 27,751 Expense reimbursement MSUA * Airport Fund * 535 Expense reimbursement Airport Fund * General Fund * 30,128 Posting correction T otal $ 808,560 * Denotes major fund. Due From Due T o Net Internal Reconciliation to Fund Financial Statements: Other Funds Other Funds Balances Governmental Funds $ 750,146 $ (390,309) $ 359,837 Proprietary Funds 58,414 (418,251) (359,837) T otal $ 808,560 $ (808,560) $ - Reconciliation to Statement of Net Position: Net Internal Balances $ (359,837) Internal Service Fund Activity reported in Business-type Activities 835,380 Net Internal Balance $ 475,543 Internal and Interfund Transfers: The City’s policy is to eliminate interfund transfers between funds in the Statement of Activities to avoid the grossing up of balances. Only the residual balances transferred between governmental and business- type activities are reported as internal transfers and then offset in the total column. Internal activities between funds and activities for the year ended June 30, 2019 were as follows: 45  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2019 Transfer In Transfe r O ut Amount Nature of Inte rfund Transfer * General Fund * MSUA $ 8,246,852 Operating subsidy/pledged sales tax * General Fund * Street Project 1,157,120 Pledged sales tax * Street Project * MSUA 1,162,925 Pledged sales tax Street and alley * MSUA 500,000 A Operating subsidy Capital Improvement Fund * MSUA 147,951 A Capital project Capital Improvement Fund * MSUA 623,409 A Capital project Grant Fund Street and Alley 63,093 A,B Operating subsidy Airport * General Fund 300 Budgeted Summer recreation program * General Fund 500 Budgeted Grant Fund * General Fund 2,196 Budgeted Airport * Police Grants 79,686 B Reimbursement of revenue MSUA * General Fund 5,421,301 Operating subsidy/pledged sales tax * General Fund * Workers Compensation Fund 508,000 Overfunding $ 17,913,333 * Denotes Major Fund Subtotal non-major Govermental Funds transfers in $ 1,337,149 A Subtotal non-major Govermental Funds transfers out $ 142,779 B T ransfers to T ransfers from Net Reconciliation to fund financial statements: Other Funds Other Funds T ransfers Governmental Funds $ (6,724,842) $ 11,254,926 $ 4,530,084 Enterprise Funds (10,680,491) 6,658,407 (4,022,084) Internal Service Funds (508,000) - (508,000) T otals $ (17,913,333) $ 17,913,333 $ - Reconciliation to Stateme nt of Activities: Net T ransfers $ (4,022,084) T ransfer of assets from Governmental Activities to Business T ype Activities 29,952 T ransfers - Internal Activity $ (3,992,132) 8. Long-Term Debt The City’s long term debt consists of revenue bonds and notes, capital lease obligations, accrued compensated absences and long-term deposits subject to refund. For the year ended June 30, 2019, the City’s long-term debt balances changed as follows: Primary Government: Balance Balance Due Within Type of Debt July 1, 2018 Additions Deductions June 30, 2019 One Year Governmental Activities: Revenue Bond Premium $ 226,417 $ - $ 20,274 $ 206,143 $ - Revenue Bonds 18,815,000 - 440,000 18,375,000 450,000 Capital Lease Obligations 696,519 - 190,352 506,167 196,999 Accrued Compensated Absences 518,745 6,600 525,345 52,534 Total Governmental Activities $ 20,256,681 $ 6,600 $ 650,626 19,612,655 699,533 Plus: Total OPEB liability 2,079,123 - Net pension liability 6,416,401 - $ 28,108,179 $ 699,533 Reconcilation to Statement of Net Position: Due within one year $ 699,533 Due in more than one year 27,408,646 $ 28,108,179 46  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2019 Balance Balance Due Within Type of Debt July 1, 2018 Additions Deductions June 30, 2019 One Year Business-Type Activities: Notes Payable - Direct borrowings $ 4,113,620 $ - $ 630,255 $ 3,483,365 $ 641,593 Unamortized Bond Discount (5,045) - (1,478) (3,567) - Revenue Bonds 810,000 8,000,000 195,000 8,615,000 615,000 Capital Lease Obligations 753,362 197,131 367,210 583,283 270,326 Accrued Compensated Absences 143,840 - 17,490 126,350 12,635 Total Business-Type Activities $ 5,815,777 $ 8,197,131 $ 1,208,477 12,804,431 1,539,554 Plus: Total OPEB liability 1,039,561 - Net pension obligation 1,919,621 - Refundable deposits 415,812 41,697 $ 16,179,425 $ 1,581,251 Reconcilation to Statement of Net Position: Due within one year $ 1,581,251 Due in more than one year 14,598,174 $ 16,179,425 Governmental activities long-term debt payable from property tax levies or other governmental revenues includes the following: Revenue Bond Payable – 2016 Sales Tax Revenue Bond for $19,375,000 with interest from .45% to 2.375% Debt service payments are due semi-annually through December 2046. Bonds are secured with net revenues of the Special Utility Authority and a pledged sales tax. $18,375,000 Current portion $450,000 Non-current portion 17,925,000 $18,375,000 Capital Lease Obligations: $90,154 capital lease obligation for the purchase of a crowler/dozer, matures September 2021 with a stated interest rate of 3.81%. $23,303 $993,730 capital lease obligation for the purchase of fire trucks, matures July 2020 with a stated interest rate of 5.00% 330,913 $102,111 capital lease obligation for the purchase of police cars, matures September 2020 with a stated interest rate of 2.66%. 43,537 $149,481 capital lease obligation for the purchase of fire rescue truck, matures March 21,2022 with a stated interest rate of 3.01%. 84,848 $113,194 capital lease obligation for the purchase of two Torro mowers, matures July 2020 with a stated interest rate of 2.15% 23,566 Total capital lease obligations $506,167 Current portion $196,999 Non-current portion 309,168 $506,167 47  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2019 Business-type activities long-term debt payable from net revenues generated by and taxes pledged to the City’s business-type activities include the following: Capital Lease Obligation: $44,900 capital lease obligation for the purchase of a mini excavator, matures July 2021 with a stated interest rate of 1.95% $11,790 $209,365 capital lease obligation for the purchase of a bucket truck, matures October 2019 with a stated interest rate of 2.300% 10,836 $503,720 capital lease obligation for the purchase of a trash truck, matures July 2019 with a stated interest rate of 1.97% 15,567 $82,210 capital lease obligation for the purchase of a work truck, matures July 2019 with a stated interest rate of 2.13% 1,505 $69,950 capital lease obligation for the purchase of a mini excavator, matures July 2021 with a stated interest rate of 1.95%. 18,368 $95,994 capital lease obligation for the purchase of a truck for water, matures August 2022 with a stated interest rate of 2.99%. 62,450 $362,837 capital lease obligation for the purchase of a refuse truck, matures June 2021 with a stated interest rate of 3.62%. 245,974 $86,408 capital lease obligation for the purchase of a tractor, matures July 2021 with a stated interest rate of 1.95%. 40,842 $197,131 capital lease obligation for the purchase of a roll-off truck, matures February 2022 with a stated interest rate of 3.98%. 175,951 Total Capital Leases $583,283 Current portion $270,326 Non-current portion 312,957 $583,283 Revenue Bond Payable – 2011 SUA Revenue Bond for $1,915,000 with interest from 1.45% to 2.90% Debt service payments are due semi-annually through December 2021. Bonds are secured with net revenues of the Special Utility Authority. $615,000 2018 Utility System Revenue Bond for $8,000,000 with interest from 3.5% to 4.0% Debt service payments are due semi-annually through August 2033. Bonds are secured with net revenues of the Special Utility Authority and a pledged sales tax. $8,000,000 Total Capital Leases $8,615,000 Current portion $615,000 Non-current portion 8,000,000 $8,615,000 48  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2019 Notes Payable – Oklahoma Water Resources Board – Direct Borrowings: 2003A Note payable to Oklahoma Water Resources Board, dated December 31, 2003, original amount $1,760,000 with an annual administration fee of 0.5% due in semi-annual installments, with final payment due December 31, 2023 secured by and payable from utility revenues for sanitation, water, and sewer. Proceeds used for capital improvements related to waste water. In the event of default on the OWRB loans, the lender may: 1) file suit for specific performance of covenants contained in the agreement; 2) accelerate maturity; 3) gain control of operations through temporary trustees; or 4) file suit to enforce or enjoin action in action of parties under provisions of the indenture, security agreement or lease agreement. $396,000 2003B Note payable to Oklahoma Water Resources Board, dated December 11, 2003, original amount $3,020,000 with interest rate of 1.78% and 0.5% annual administrative fee due in semi-annual installments, secured by and payable from utility revenues for water, sewer, and garbage collection and disposal system, with final payment due December 11, 2023. Proceeds used for capital improvements related to waste water. In the event of default on the OWRB loans, the lender may: 1) file suit for specific performance of covenants contained in the agreement; 2) accelerate maturity; 3) gain control of operations through temporary trustees; or 4) file suit to enforce or enjoin action in action of parties under provisions of the indenture, security agreement or lease agreement. 987,860 2004A Note payable to Oklahoma Water Resources Board, dated June 25, 2004, original amount $1,595,538 with an annual administration fee of 0.5% due in semi-annual installments, with final payment due June 25, 2024 secured by and payable from utility revenues for water, sewer, and garbage collection and disposal system. Proceeds used for capital improvements related to waste water. In the event of default on the OWRB loans, the lender may: 1) file suit for specific performance of covenants contained in the agreement; 2) accelerate maturity; 3) gain control of operations through temporary trustees; or 4) file suit to enforce or enjoin action in action of parties under provisions of the indenture, security agreement or lease agreement. 398,884 2004B Note payable to Oklahoma Water Resources Board, dated June 25, 2005, original amount $2,740,000 with interest rate of 1.78% and 0.5% annual administrative fee due in semi-annual installments, with final payment due June 25, 2025 secured by and payable from utility revenues for water, sewer, and garbage collection and disposal system. Proceeds used for capital improvements related to waste water. In the event of default on the OWRB loans, the lender may: 1) file suit for specific performance of covenants contained in the agreement; 2) accelerate maturity; 3) gain control of operations through temporary trustees; or 4) file suit to enforce or enjoin action in action of parties under provisions of the indenture, security agreement or lease agreement. 907,140 2004C Note payable to Oklahoma Water Resources Board, dated October 26, 2004, original amount $1,620,,000 with interest rate of 3.0% and 0.5% annual administrative fee due in semi-annual installments, with final payment due October 26, 2024 secured by and payable from utility revenues for water, sewer, and garbage collection and disposal system. Proceeds used for capital improvement related to water. In the event of default on the OWRB loans, the lender may: 1) file suit for specific performance of covenants contained in the agreement; 2) accelerate maturity; 3) gain control of operations through temporary trustees; or 4) file suit to enforce or enjoin action in action of parties under provisions of the indenture, security agreement or lease agreement. 590,840 49  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2019 2005 Note payable to Oklahoma Water Resources Board, dated September 15, 2005, original amount $563,000 with an annual administration fee of 0.5% due in semi-annual installments, with final payment due September 15, 2025 secured by and payable from utility revenues for water, sewer, and garbage collection and disposal system. Proceeds used for capital improvements related to waste water. In the event of default on the OWRB loans, the lender may: 1) file suit for specific performance of covenants contained in the agreement; 2) accelerate maturity; 3) gain control of operations through temporary trustees; or 4) file suit to enforce or enjoin action in action of parties under provisions of the indenture, security agreement or lease agreement. 202,641 Total Notes Payable – Oklahoma Water Resources Board $3,483,365 Current portion $641,593 Non-current portion 2,841,772 $3,483,365 Long-term debt service requirements to maturity are as follows: Governmental-Type Activities Revenue Bonds Payable Capital Leases Year Ending June 30, Principal Interest Principal Interest 2020 $ 450,000 $ 546,438 $ 196,999 $ 17,617 2021 455,000 537,388 282,806 2,524 2022 465,000 528,188 26,362 469 2023 475,000 518,788 - - 2024 485,000 509,188 - - 2025-2029 2,575,000 2,393,088 - - 2030-2034 550,000 2,194,781 - - 2035-2039 4,435,000 1,744,750 - - 2040-2044 3,925,000 1,006,875 - - 2045-2047 4,560,000 356,250 - - Total $ 18,375,000 $ 10,335,734 $ 506,167 $ 20,610 Business-Type Activities Notes Payable-Direct Borrowings Revenue Bonds Payable Capital Leases Payable Year Ending June 30, Principal Interest Principal Interest Principal Interest 2020 $ 641,593 $ 82,226 $ 615,000 $ 287,150 $ 270,326 $ 15,833 2021 658,024 66,114 635,000 265,383 236,019 7,229 2022 669,477 48,626 660,000 242,370 71,055 1,081 2023 691,702 29,264 465,000 221,325 5,883 13 2024 663,647 9,932 485,000 202,725 - 2025-2029 158,922 57 2,650,000 786,375 - - 2030-2034 - - 3,105,000 333,375 - - Total $ 3,483,365 $ 236,219 $ 8,615,000 $ 2,338,703 $ 583,283 $ 24,156 MDRA Debt: Balance Balance Due Within Type of Debt July 1, 2018 Additions Deductions June 30, 2019 One Year Component Unit: Accrued Compensated Absences 2,808 - 2,652 156 156 Total MDRA $ 2,808 $ - $ 2,652 $ 156 $ 156 50  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2019 MIDA Debt (direct borrowings): The MIDA issued the 2005 note payable to the Miami Area Economic Development Services, Inc, payable in monthly Installments of $3,300 with interest at 5.00% maturity date of February 1, 2020 $210,963 The MIDA issued the 2005 note payable to the Miami Area Economic Development Services, Inc, payable in monthly Installments of $1,918, with interest of 1.25%, maturity date of February 1, 2020 138,346 The MIDA issued the 2005 note payable to the Miami Area Economic Development Services, Inc. payable in monthly Installments of $607, with interest of 4.00%, maturity date of February 1, 2020 40,179 Total debt outstanding – MIDA $389,487 Balance Balance Due Within Type of Debt August 1, 2018 Additions Deductions July 31, 2019 One Year Component Unit: MIDA Note payable (direct borrowings) $ 435,431 $ - $ 45,944 $ 389,487 $ 389,487 Component Unit - MIDA Notes Payable Year Ending June 30, Principal Interest 2020 389,487 8,936 Total $ 389,487 $ 8,936 Pledge of Future Revenues Utility Net Revenues Pledge - The City and Special Utility Authority have pledged net utility revenues of the water, electric and wastewater systems to repay the OWRB Series 2003 B, 2003 A, 2004 A, 2004 B, 2004C, and 2005 promissory notes payable. Proceeds from the notes provided financing for capital assets. The notes are payable from net utility revenues and are payable through 2025. The total principal and interest payable for the remainder of the life of these notes is $3,719,584. Net utility revenues received in the current year were $4,936,402. Debt service payments of $732,438 for the current fiscal year were 14.8% of pledged net utility revenues. Pledged Sales Tax – The City has pledged 3.65 cents (or 100%) of future sales tax revenues to repay $1,915,000 of the Series 2011 Revenue Bonds, $19,375,000 of the Series 2016 Sales Tax Revenue Refunding Bonds, and 8,000,000 of the Series 2018 Revenue Bonds. Three cents of the sales tax was voted by the citizens for general operations and .65 cent is legally restricted by a vote of the citizens for street purposes. The 2011 Revenue bonds are for water improvements. The 2016 bonds refinanced the 2010 bonds that were originally for street purposes and the 2013 bond anticipation note for the stadium construction. The .65 sales tax is used to pay the debt service on the 2016 bonds and the three cents is sent back to the general fund if not needed for debt service. The bonds are payable from pledged sales tax and net utility revenues and are payable through 2021, 2046 and 2033, respectively. The total principal and interest payable for the remainder of the life of these bonds is $39,664,434. Pledged sales taxes received in the current year were $5,421,301. Net revenues and sales tax pledged during the year was $10,357,703. Debt service payments of $1,354,792 for the current fiscal year were 13.1% of the pledged revenue. 51  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2019 9. Net Position and Fund Balances Government-wide net position is 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 the outstanding balances of any bonds, mortgages, notes, or other borrowings that are attributable to the acquisition, construction, or improvements of those assets. b. Restricted net position - Consists of net position with constraints placed on the use either by 1) external groups such as creditors, grantors, contributors, or laws and regulations of other governments, or 2) law through constitutional provisions or enabling legislation. c. Unrestricted net position - All other net position that does not meet the definition of “restricted” or “net investment in capital assets.” It is the City’s policy to first use restricted net position prior to the use of unrestricted net position when an expense is incurred for purposes for which both restricted and unrestricted net position are available. At June 30, 2019 net position restricted by enabling legislation totaled $237,291. Fund Balance: Governmental fund equity is classified as fund balance. Fund balance is further classified as nonspendable, restricted, committed, assigned and unassigned. These classifications are defined as: a. Nonspendable – includes amounts that cannot be spent because they are either (a) not in spendable form or (b) legally or contractually required to be maintained intact. b. Restricted – consists of fund balance with constraints placed on the use of resources either by (1) external groups such as creditors, grantors, contributors, or laws or regulations of other governments, or (2) laws through constitutional provisions or enabling legislation. c. Committed – included amounts that can only be used for specific purposes pursuant to constraints imposed by formal action of the city’s highest level of decision-making authority. The City’s highest level of decision-making authority is made by ordinance. d. Assigned – includes amounts that are constrained by the city’s intent to be used for specific purposes but are neither restricted nor committed. Assignments of fund balance may be made by city council action or management decision (city manager) when the city council has delegated that authority. Assignments for revenues in other governmental funds are made through budgetary process. e. Unassigned – represents fund balance that has not been assigned to other funds and has not been restricted, committed, or assigned to specific purposes within the General Fund. The City’s policy for the use of fund balance amounts require that committed amounts would be reduced first followed by assigned amounts and then unassigned amounts when expenditures are incurred for purposes for which amounts in any of those unrestricted fund balance classifications could be used. The following table shows the fund balance classifications as shown on the Governmental Funds Balance Sheet: 52  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2019 Major Capital Project Fund Other General Street and Stadium Governmental Fund Project Fund Fund Total Fund Balance: Restricted For: Police operations - grants $ - $ - $ 15,548 $ 15,548 General obligation debt service - 312,454 142,334 454,788 Capital improvements - - 243,886 243,886 Street improvements - 585,892 - 585,892 Culture and rec programs 23,213 - 304,083 327,296 Economic development - - 92,811 92,811 Police - drug programs - - 2,455 2,455 Sub-total restricted 23,213 898,346 801,117 1,722,676 Committed for: Street operations - - 2,044,759 2,044,759 Assigned for: Capital improvements - - 3,125,104 3,125,104 Demolition 170,415 - - 170,415 Culture and rec programs 13,772 - - 13,772 Supplement next year's budget 1,235,265 - - 1,235,265 Sub-total assigned 1,419,452 - 3,125,104 4,544,556 Unassigned (deficit): 352,315 - (299,088) 53,227 TOTAL FUND BALANCE $ 1,794,980 $ 898,346 $ 5,671,892 $ 8,365,218 Beginning net positions was restated due to a capital asset inventory clean up project and an error related to accounts receivable. Restatements were as follows: Governmental Activities: Non-Major Business-type Activities: Government-wide Governmental Funds Fund Level Government-wide Statement of Activities: Beginning net position as previously reported $8,601,030 $5,895,004 $18,138,726 $18,851,436 Account receivable 41,511 41,511 127,015 127,015 Adjustment for asset inventory clean up project (1,327,556) 1,725,784 1,725,784 Beginning net position, restated $7,314,985 $5,936,515 $19,991,525 $20,704,235 11. Revenues Program Revenues: Program revenues within the statement of activities that are derived directly from each activity or from parties outside of the City’s taxpayers are reported as program revenues. The City has the following program revenues in each activity:  Public Safety – Fire, Police, Emergency Management, Court, Civil Defense, fire run charges, officer’s training charges for services, police sentinel charges for services, restricted operating grants, 911 revenue, court and restricted capital grants  Streets – Commercial vehicle and gasoline excise tax shared by the State  Culture and recreation –pool fees, library fees, fishing permits, softball fees, recreation fees operating and capital grants  General Government – license and permits, fines and forfeitures, cemetery revenue, impact fees, and operating grants  Economic Development – rents, operating grants All other governmental revenues are reported as general. All taxes are classified as general revenue even if restricted for a specific purpose. 53  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2019 Sales Tax Revenue: Sales tax revenue represents a 3.65 cents tax on each dollar of taxable sales of which is collected by the Oklahoma Tax Commission and remitted to the City. The sales tax is deposited 3 cents in the general fund and .65 cents in the Street and Stadium Bond Project Fund. The entire sales tax initially reported in the General Fund is then transferred to the MSUA per the bond indenture pledge then transferred back to the appropriate funds. The .65 cents is legally restricted for street and stadium purposes by a vote of the citizens. Property Tax Revenue: In accordance with state law, a municipality may only levy a property tax to retire general obligation debt approved by the voters and to pay judgments rendered against the City. The City’s property taxes are billed and collected by the County and remitted to the City. Property taxes levied by the City are billed and collected by the County Treasurer's Office and remitted to the City in the month following collection. Property taxes are levied normally in October and are due in equal installments on December 31 and March 31. Property taxes unpaid for the fiscal year are attached by an enforceable lien on property in the following October. For the year ended June 30, 2019, the City did not assess a property tax. 12. 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; employee health and life; and natural disasters. The City manages these various risks of loss as follows:  General Liability – Covered through purchased insurance  Physical Property – Covered through purchased insurance with a $35,000 deductible.  Workers’ Compensation – Workers’ compensation is covered through self-insurance using a third party processor to process claims. The City also has a stop-loss policy which covers individual claims in excess $400,000 for electric, police and firefighters and $350,000 for all other classes of employees per occurrence.  Employee’s Group Medical –Covered through self-insurance using a third party processor to process medical claims. The City uses the third party processor’s estimates to record group insurance claims payable. The City also has a stop-loss policy which covers individual claims in excess of $70,000.  Unemployment – the City is self-insured. Management believes the insurance coverage listed above is sufficient to preclude any significant uninsured losses to the City. Settled claims have not exceeded this insurance coverage in any of the past two fiscal years. Worker's Health Unemployment Compensation Care Fund Total Claim liability, June 30, 2017 $ 2,362,057 $ 86,595 $ - $ 2,448,652 Claims and changes in estimates 431,497 1,641,563 5,604 2,078,664 Claims payments (707,835) (1,435,894) (5,604) (2,149,333) Claim liability, June 30, 2018 2,085,719 292,264 - 2,377,983 Claims and changes in estimates 729,866 1,263,145 12,680 2,005,691 Claims payments (1,598,529) (1,461,842) (12,680) (3,073,051) Claim liability, June 30, 2019 $ 1,217,056 $ 93,567 $ - $ 1,310,623 54  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2019 13. Retirement Plan Participation The following is a summary of the deferred outflows, deferred inflows and net pension liability by plan as of June 30, 2019: Governmental Business Type Total Deferred Outflows: Police Pension $ 367,601 $ - $ 367,601 Fire Pension 1,245,114 - 1,245,114 OkMRF 472,172 594,849 1,067,021 Total $ 2,084,887 $ 594,849 $ 2,679,736 Deferred Inflows: Police Pension $ 218,940 $ - $ 218,940 Fire Pension 428,231 - 428,231 OkMRF 455,888 507,356 963,244 Total $ 1,103,059 $ 507,356 $ 1,610,415 Net Pension Liability: Fire Pension 4,741,794 - 4,741,794 OkMRF 1,674,607 1,919,621 3,594,228 Total $ 6,416,401 $ 1,919,621 $ 8,336,022 Net Pension Asset: Police Pension $ 194,728 $ - $ 194,728 Total $ 194,728 $ - $ 194,728 Oklahoma Municipal Retirement Plan (OkMRF) – Defined Benefit Plan A. Plan Description The City contributes to the OkMRF for all eligible employees except for those covered by the Police and Firefighter Pension Systems. The plan is an agent multiple employer - defined benefit plan administered by OkMRF. The OkMRF plan issues a separate financial report and can be obtained from OkMRF or from their website: www.okmrf.org/reports.html. Benefits are established or amended by the City Council in accordance with O.S. Title 11, Section 48-101-102. B. Summary of Significant Accounting Policies For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the City’s plan and additions to/deductions from the City’s fiduciary net position have been determined on the same basis as they are reported by OkMRF. For this purpose, benefit payments are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value based on published market prices. Detailed information about the OkMRF plans’ fiduciary net position is available in the separately issued OkMRF financial report. 55  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2019 C. Eligibility Factors and Benefit Provisions As of 07/01/18 Provision OkMRF Plan a. Eligible to participate Full-time employees except police, firefighters and other employees who are covered under an approved system. b. Period Required to Vest 7 years of credited service beginning September 1, 2018 c. Eligibility for Distribution -Normal retirement at age 65 with 10 years of service -Early retirement at age 55 with 10 years of service -Disability retirement upon disability with 10 years of service -Death benefit with 10 years of service for married employees 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 -1.875% of final average salary multiplied by credited years of service Early Retirement -Actuarially reduced benefit based upon age, final average salary, and years of service at termination Disability Retirement -Same as normal retirement Death Benefit -50% of employees accrued benefit, but terminates upon spouse re-marriage Prior to 10 Years Service -No benefits 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 60 months certain and life thereafter basis. Employee may elect, with City consent, option form based on actuarial equivalent. D. Employees Covered by Benefit Terms Active Employees 123 Deferred Vested Former Employees 9 Retirees or Retiree Beneficiaries 80 Total 212 56  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2019 E. 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. Title 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 10.50% of covered payroll as of July 1, 2018. For the year ended June 30, 2019, the City recognized $647,362 of employer contributions to the plan which is in excess of the actuarially determined amount by $134,745 based on covered payroll of $4,882,062. Employees contribute 3.75% to the plan in accordance with the plan provisions adopted by the City Council. Employee contributions for fiscal 2019 were $183,079. Actuarial Assumptions Date of Last Actuarial Valuation July 1, 2018 a. Actuarial cost method Entry age normal b. Rate of Return on Investments and Discount Rate 7.50% c. Projected Salary Increase Varies between 7.42% and 4% based on age d. Post Retirement cost-of-Living Increase None e. Inflation Rate 3% f. Mortality Table UP 1994, with projected mortality improvement g. Percent of married employees 100% h. Spouse age difference 3 years (female spouses younger) i. Turnover Select and ultimate rates Ultimate rates are age-related as shown Additional rates per thousand are added during the first 5 years: Year 1: 225 Year 2: 140 Year 3: 100 Year 4: 70 Year 5: 40 j. Date of last experience study September 2012 for fiscal years 2007 thru 2011 57  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2019 F. Discount Rate – The discount rate used to value benefits was the long-term expected rate of return on plan investments of 7.50% since the plan’s net fiduciary position is projected to be sufficient to make projected benefit payments. The City has adopted a funding method that is designed to fund all benefits payable to participants over the course of their working careers. Any differences between actual and expected experience are funded over a fixed period to ensure all funds necessary to pay benefits have been contributed to the trust before those benefits are payable. Thus, the sufficiency of pension plan assets was made without a separate projection of cash flows. The long-term expected rate of return on pension plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation (2.75%). Best estimates of arithmetic real rates of return for each major asset class included in the pension plan’s target asset allocation as of July 1, 2018 are summarized in the following table: Target Real Weighted Allocation Return Return Large cap stocks 25% 5.80% 1.45% S&P 500 Small/mid cap stocks 10% 6.40% 0.64% Russell 2500 Long/short equity 10% 5.00% 0.50% MSCI ACWI International stocks 20% 6.20% 1.24% MSCI EAFE Fixed income bonds 30% 2.30% 0.69% Barclay's Capital Aggregate Real estate 5% 4.60% 0.23% NCREIF Cash equivalents 0% 0.00% 0.00% 3 month Treasury TOTAL 100% Average Real Return 4.75% Inflation 2.75% Long-term expected return 7.50% 58  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2019 G. Changes in Net Pension Liability – The total pension liability was determined based on an actuarial valuation performed as of July 1, 2018 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. There were also no changes between the measurement date of July 1, 2018 and the City’s report ending date of June 30, 2019, that would have had a significant impact on the net pension liability. The following table reports the components of changes in net pension liability: Increase (Decrease) Total Pension Plan Net Net Pension Liability Position Liability (a) (b) (a) - (b) Balances Beginning of Year $ 14,682,635 $ 10,342,425 $ 4,340,210 Changes for the Year: Service cost 283,926 - 283,926 Interest expense 1,061,577 - 1,061,577 Experience losses (gains) - (541,596) - (541,596) (amortized over avg remain svc period of actives & inactive) Changes of assumptions - - - Contributions--City - 635,453 (635,453) Contributions--members - 179,680 (179,680) Net investment income - 755,918 (755,918) Benefits paid (1,076,009) (1,076,009) - Plan administrative expenses - (21,162) 21,162 Net Changes (272,102) 473,880 (745,982) Balances End of Year $ 14,410,533 $ 10,816,305 $ 3,594,228 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 7.50 percent, as well as what the City’s net pension liability would be if it were calculated using a discount rate that is 1-percentage-point lower (6.50 percent) or 1-percentage-point higher (8.50 percent) than the current rate: 1% Current 1% Decrease Discount Increase (6.50%) Rate (7.50%) (8.50%) Net Pension Liability $ 5,348,049 $ 3,594,228 $ 2,158,819 The City reported $198,635 in pension expense for the year ended June 30, 2019. At June 30, 2019, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Outflows Deferred Inflows of Resources of Resources Differences between expected and actual experience $ 26,358 $ 818,521 Net difference between projected and actual earnings 80,054 - Changes in assumptions 182,644 - Changes in proportion and differences between City contributions and proportionate share of contributions 117,877 117,878 City contributions during measurement date 12,726 26,845 City contributions subsequent to the measurement date 647,362 - Total $ 1,067,021 $ 963,244 59  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2019 The $647,362 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, 2020. Any other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: Year ended June 30: 2020 $ (66,895) 2021 (156,168) 2022 (244,710) 2023 (75,812) 2024 - $ (543,585) Oklahoma Firefighter’s Pension – Statewide Cost Sharing Plan Plan description - The City of Miami, as the employer, participates in the Firefighters Pension & retirement—a cost-sharing multiple-employer defined benefit pension plan administered by the Oklahoma Firefighters Pension & Retirement System (FPRS). Title 11 of the Oklahoma State Statutes grants the authority to establish and amend the benefit terms to the FPRS. FPRS issues a publicly available financial report that can be obtained at www.ok.gov/fprs Benefits provided - FPRS provides defined retirement benefits based on members’ final average compensation, age, and term of service. In addition, the retirement program provides for benefits upon disability and to survivors upon death of eligible members. The Plan’s benefits are established and amended by Oklahoma statute. Retirement provisions are as follows: Normal Retirement:  Hired Prior to November 1, 2013 Normal retirement is attained upon completing 20 years of service. The normal retirement benefit is equal to 50% of the member’s final average compensation. Final average compensation is defined as the monthly average of the highest 30 consecutive months of the last 60 months of participating service. For volunteer firefighters, the monthly pension benefit for normal retirement is $150.60 per month.  Hired After November 1, 2013 Normal retirement is attained upon completing 22 years of service. The normal retirement benefit is equal to 55% of the member’s final average compensation. Final average compensation is defined as the monthly average of the highest 30 consecutive months of the last 60 months of participating service. Also participants must be age 50 to begin receiving benefits. For volunteer firefighters, the monthly pension benefit for normal retirement is $165.66 per month. 60  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2019 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-the-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-the-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-. 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% percent of their annual pay. Participating cities are required to contribute 14% of the employees’ annual pay. Contributions to the pension plan from the City were $170,934. The State of Oklahoma also made on- behalf contributions to FPRS in the amount of $428,412 during the calendar year and this is reported as both expense and revenue in the General Fund Statement of Revenues, Expenditures, and Changes in Fund Balance. In the government-wide Statement of Activities, revenue is recognized for the state’s on-behalf contributions on an accrual basis of $422,654. These on-behalf payments did not meet the criteria of a special funding situation. Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions - At June 30, 2019, the City reported a liability of $4,741,794 for its proportionate share of the net pension liability. The net pension liability was measured as of June 30, 2018, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of July 1, 2018. 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, 2018. Based upon this information, the City’s proportion was .4213%. For the year ended June 30, 2019, the City recognized pension expense of $19,174. At June 30, 2019, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Outflows of Deferred Inflows of Resources Resources Differences between expected and actual experience $ 990,427 $ - Net difference between projected and actual earnings on pension plan investments - 394,005 Changes in proportion 83,753 26,832 Contributions during the measurement date - 7,394 Contributions subsequent to the measurement date 170,934 - Total $ 1,245,114 $ 428,231 61  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2019 In the year ending June 30, 2019, $170,934 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 subsequent year. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: Year ended June 30: 2020 $ 227,292 2021 175,557 2022 29,872 2023 136,717 2023 76,511 Total $ 645,949 Actuarial Assumptions- The total pension liability was determined by an actuarial valuation as of July 1, 2018, using the following actuarial assumptions, applied to all prior periods included in the measurement: Inflation: 3% Salary increases: 3.5% to 9.0% average, including inflation Investment rate of return: 7 .5% net of pension plan investment expense Mortality rates were based on the RP2000 combined healthy with blue collar adjustment as appropriate, with adjustments for generational mortality improvement using scale AA for healthy lives and no mortality improvement for disabled lives. The actuarial assumptions used in the July 1, 2018, valuation were based on the results of an actuarial experience study for the period July 1, 2007, to June 30, 2012. 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, 2018, are summarized in the following table: Target Long-Term Expected Asset Class Allocation Real Rate of Return Fixed income 20% 4.37% Domestic equity 47% 7.01% International equity 15% 8.83% Real estate 10% 6.58% Other assets 8% 5.70% 62  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2019 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 36% 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 Liability to Changes in the Discount Rate-The following presents the net pension liability of the employers 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 1-percentage point lower (6.5%) or 1-percentage-point higher (8.5%) than the current rate: 1% Decrease Current Discount 1% Increase (6.5%) Rate (7.5%) (8.5%) Employers' net pension liability $ 6,210,805 $ 4,741,794 $ 3,508,044 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 FPRS; which can be located at www.ok.gov/fprs. Oklahoma Police Pension – Statewide Cost Sharing Plan Plan description - The City of Miami, 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). Title 11 of the Oklahoma State Statutes, through the Oklahoma Legislature, grants the authority to establish and amend the benefit terms to the OPPRS. OPPRS issues a publicly available financial report that can be obtained at www.ok.gov/OPPRS Benefits provided - OPPRS provides retirement, disability, and death benefits to members of the plan. The normal retirement date under the Plan is the date upon which the participant completes 20 years of credited service, regardless of age. Participants become vested upon completing 10 years of credited service as a contributing participant of the Plan. No vesting occurs prior to completing 10 years of credited service. Participants’ contributions are refundable, without interest, upon termination prior to normal retirement. Participants who have completed 10 years of credited service may elect a vested benefit in lieu of having their accumulated contributions refunded. If the vested benefit is elected, the participant is entitled to a monthly retirement benefit commencing on the date the participant reaches 50 years of age or the date the participant would have had 20 years of credited service had employment continued uninterrupted, whichever is later. Monthly retirement benefits are calculated at 2.5% 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. 63  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2019 Monthly benefits for participants due to permanent disability incurred in the line of duty are 2.5% of the participants’ final average salary multiplied by 20 years. This disability benefit is reduced by stated percentages for partial disability based on the percentage of impairment. After 10 years of credited service, participants who retire due to disability incurred from any cause are eligible for a monthly benefit based on 2.5% of their final average salary multiplied by the years of service. This disability benefit is also reduced by stated percentages for partial disability based on the percentage of impairment. Effective July 1, 1998, once a disability benefit is granted to a participant, that participant is no longer allowed to apply for an increase in the dollar amount of the benefit at a subsequent date. Survivor’s benefits are payable in full to the participant’s beneficiary upon the death of a retired participant. The beneficiary of any active participant killed in the line of duty is entitled to a pension benefit. Contributions - The contributions requirements of the Plan are at an established rate determine by Oklahoma Statute and are not based on actuarial calculations. Employees are required to contribute 8% percent of their annual pay. Participating cities are required to contribute 13% of the employees’ annual pay. Contributions to the pension plan from the City were $166,813. The State of Oklahoma also made on- behalf contributions to OPPRS in the amount of $161,714 during the calendar year and this is reported as both expense and revenue in the General Fund Statement of Revenues, Expenditures, and Changes in Fund Balance. In the government-wide Statement of Activities, revenue is recognized for the state’s on-behalf contributions on an accrual basis of $159,543. These on-behalf payments did not meet the criteria of a special funding situation. Pension Liabilities (Asset), Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions - At June 30, 2019, the City reported an asset of $194,728 for its proportionate share of the net pension asset. The net pension asset was measured as of June 30, 2018, and the total pension liability used to calculate the net pension asset was determined by an actuarial valuation as of July 1, 2018. 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, 2018. Based upon this information, the City’s proportion was .4088%. For the year ended June 30, 2019, the City recognized pension expense of $127,911. At June 30, 2019, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Outflows of Deferred Inflows of Resources Resources Differences between expected and actual experience $ 1,150 $ 182,461 Changes of assumptions 85,045 - Net difference between projected and actual earnings on pension plan investments 101,402 - Changes in proportion 11,977 24,629 Contributions during measurement date 1,214 11,850 Contributions subsequent to the measurement date 166,813 - Total $ 367,601 $ 218,940 64  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2019 In the year ending June 30, 2019, $166,813 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 or an addition to the net pension liability (asset) in the subsequent year. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: Year ended June 30: 2020 $ 92,128 2021 31,997 2022 (110,159) 2023 (37,292) 2024 5,174 Total $ (18,152) Actuarial Assumptions-The total pension liability was determined by an actuarial valuation as of July 1, 2018, using the following actuarial assumptions, applied to all prior periods included in the measurement: Inflation: 2.75% Salary increases: 3.5% to 10% average, including inflation Investment rate of return: 7 5% net of pension plan investment expense Cost-of-living adjustments: Police officers eligible to receive increased benefits according to repealed Section 50-120 of Title 11 of the Oklahoma Statutes pursuant to a court order receive an adjustment of 1/3 to 1/2 of the increase or decrease of any adjustment to the base salary of a regular police officer, based on an increase in base salary of 3.5% (wage inflation). Mortality rates: Active employees (pre-retirement) RP-2000 Blue Collar Healthy Combined table with age set back 4 years with fully generational improvement using Scale AA. Active employees (post-retirement) and nondisabled pensioners: RP- 2000 Blue Collar Healthy Combined table with fully generational improvement using scale AA. Disabled pensioners: RP-2000 Blue Collar Healthy Combined table with age set forward 4 years. The actuarial assumptions used in the July 1, 2018, valuation were based on the results of an actuarial experience study for the period July 1, 2012, to June 30, 2017. 65  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2019 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, 2018, are summarized in the following table: Long-Term Expected Asset Class Real Rate of Return Fixed income 4.53% Domestic equity 5.86% International equity 8.83% Real estate 6.58% Private Equity 9.21% Commodities 5.06% The current allocation policy is that approximately 60% of assets in equity instruments, including public equity, long-short hedge, venture capital, and private equity strategies; approximately 25% of assets in fixed income to include investment grade bonds, high yield and non-dollar denominated bonds, convertible bonds, and low volatility hedge fund strategies; and 15% of assets in real assets to include real estate, commodities, and other strategies. 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 Liability(Asset) to Changes in the Discount Rate- The following presents the net pension liability (asset) of the employers calculated using the discount rate of 7.5%, as well as what the Plan's net pension liability (asset) would be if it were calculated using a discount rate that is 1-percentage point lower (6.5%) or 1-percentage-point higher (8.5%) than the current rate: 1% Decrease Current Discount 1% Increase (-6.5%) Rate (7.5%) (-8.5%) Employers' net pension liability (asset) $ 903,284 $ (194,728) $ (1,122,973) Pension plan fiduciary net position - Detailed information about the pension plan’s fiduciary net position is available in the separately issued financial report of the OPPRS; which can be located at www.ok.gov/OPPRS . 66  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2019 City of Miami 457 Deferred Compensation Plan (DC Plan) Plan Description – The City of Miami makes available to all full-time employees two Section 457 deferred compensation plans. The DC Plan was created in accordance with Section 457 of the Internal Revenue Code, and permits the employees to defer a portion of their salary until future years. The deferred compensation is not available to the employee until retirement, termination, death, or unforeseeable emergency. Employees may choose investments offered by International City/County Management Association (ICMA) or the DC Plan. Separate audited financial statements are not available. Funding Policy – DC Plan participants may contribute up to $15,000 of eligible compensation per year. During the year ended June 30, 2019, employees contributed $125,657 and the employer contributed $0 to the DC Plan. ICMA Retirement Deferred Compensation Plan In addition to the above plans, the City of Miami offers a retirement plan through ICMA which is funded 18% by the employer and zero percent by employee contributions. There were no contributions to the plan for the fiscal year ended June 30, 2019. Separate audited financial statements are not available. 14. Postemployment Healthcare Plan Plan Description. The City sponsors Medical, Rx, and Dental insurance to qualifying retirees and their dependents. Coverage is provided through fully-insured arrangements that collectively operate as a substantive single-employer defined benefit plan. A substantive plan is one in which the plan terms are understood by the employer and the plan members. This understanding is based on communication between the employer and the plan member and historical pattern of practice with regard to the sharing of benefit costs. Qualifying retirees are those employees who are eligible for immediate disability or retirement benefits under the Oklahoma Police Pension and Retirement System, Oklahoma Firefighter’s Pension and Retirement System, or the City of Miami Retirement Plan. Retirees may continue coverage with the City by paying the carrier premium rate. Coverage is available for each of the lifetimes of retirees and their spouses. Authority to establish and amend benefit provisions rest with the City Council. Retirees may continue coverage with the City by paying the premium rate. Benefits are paid from general operating assets of the City. Benefits provided - The Plan covers all current retirees of the City who elected postretirement medical coverage through the City Health Plan and future retired employees of the City fully self-insured health plan. In accordance with administrative policy, the benefit levels are the same as those afforded to active employees; this creates an implicit rate subsidy. The benefits offered by the City to retirees include health and prescription drug benefits. The retiree retains coverage with the City, by making an election within 30 days of termination of service and have 10+ years of creditable service in with the City and are at least 55 years old at the time of termination. The amount of benefit payments during fiscal year June 30, 2019 were $103,265. Employees Covered by Benefit Terms Active Employees 180 Inactive or beneficiaries receiving benefits 9 Total 189 67  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2019 Total OPEB Liability – The total OPEB liability was determined based on an alternative measurement method valuation performed as of June 30, 2018 which is also the measurement date. Actuarial Assumptions- The total OPEB liability in the June 30, 2018 valuation, was determined using the following actuarial assumptions:  Actuarial Cost Method - Entry Age  Discount Rate – 3.87% based on the 20 year municipal bond yield  Retirement Age – Civilians - 55 with 10 years of service, Police and Fire 20 years of service  Medical Trend Rates: 2019 6.02% 2020 5.99% 2025 5.86% 2030 5.99% 2035 5.87% 2040 5.33% 2045 5.15% 2050 5.03% 2060 4.87% Changes in Total OPEB Liability - Total OPEB Liability Balances at Beginning of Ye ar $ 3,285,906 Changes for the Year: Service cost 206,592 Interest expense 125,031 Change in assumptions (378,465) Difference between expected and actual experience (17,115) Benefits paid (103,265) Net Changes (167,222) Balances End of Year $ 3,118,684 OPEB Liabilities, OPEB Expense, and Deferred Outflows or Resources and Deferred Inflows of Resources Related to OPEB - For the year ended June 30, 2019, the City recognized OPEB expense of $243,173. At June 30, 2019, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: 68  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2019 Deferred Outflows Deferred Inflows of Resources of Resources Differences between expected and actual experience $ - $ 14,901 Changes of assumptions - 536,528 Net difference between projected and actual earnings on OPEB plan investments - - Changes in proportion 266,334 265,815 City Contributions during measurement date 7,776 7,792 Benefits paid subsequent to the measurement date 99,477 - Total $ 373,587 $ 825,036 In the year ending June 30, 2019, $99,477 reported as deferred outflows of resources related to pensions resulting from City benefits paid subsequent to the measurement date will be recognized as a reduction of or an addition to the total OPEB liability in the subsequent year. Amounts reported as deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows: Year Ended June 30: 2020 $ (88,450) 2021 $ (88,450) 2022 $ (88,450) 2023 $ (88,450) 2024 $ (88,450) Thereafter (108,676) $ (550,926) Sensitivity of the City’s total OPEB liability to changes in the discount rate- The following presents the City’s total OPEB liability, as well as what the City’s proportionate share of the total OPEB liability would be if it were calculated using a discount rate that is 1-percentage-point lower (2.87 percent) or 1- percentage- point higher (4.87 percent) than the current discount rate: Current Discount Rate 1% Decrease ( 2.87%) (3.87%) 1% Increae ( 4.87%) Employers' total OPEB liability $ 3,774,875 $ 3,118,684 $ 2,603,252 Sensitivity of the City’s total OPEB liability to changes in the healthcare cost trend rates - The following presents the City’s total OPEB liability, as well as what the City’s total OPEB liability would be if it were calculated using healthcare cost trend rates that are 1-percentage-point lower (5.09 percent decreasing to 3.87 percent) or 1- percentage point higher (7.09 percent decreasing to 5.87 percent) than the current healthcare cost trend rates: Current Discount Rate 1% Decrease (5.90% (6.90% decreasing to 1% Increae (7.09% decreasing to 3.87%) 4.87%) decreasing to 5.87%) Employers' total OPEB liability $ 2,618,871 $ 3,118,684 $ 3,738,331 15. Commitments and Contingencies 69  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2019 Litigation The City is a party to various legal proceedings which normally occur in the course of governmental operations. The financial statements do not include accruals or provisions 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. 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. Grant Programs The City of Miami participates in various federal or state grant/loan programs from year to year. In 2018, the City’s involvement in federal and state award programs is relatively material. 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. The City has not been notified of any noncompliance with federal or state award requirements. Any liability for 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. Pensacola Dam Licensing The City has experienced flooding at various degrees for many years which the City asserts has been aggravated by operational changes at a nearby lake. The City contends that the instances of flooding have increased because the quasi-governmental agency that operates the Pensacola Dam that forms Grand Lake (and it’s hydroelectric operations), the Grand River Dam Authority (GRDA), has been granted permission to raise lake levels by the Federal Energy Regulatory Commission (FERC), which licenses GRDA to operate the dam. FERC has notified the City that the appropriate time to address these problems is at the time the operational license for the dam is renewed in 2022. That process started in 2018 and could potentially take over five years to complete. The City has engaged legal counsel to represent its interest during the relicensing process and to require GRDA to modify its lake operations to reduce instances of flooding and to purchase flood easements. During fiscal 2019, the City incurred approximately $890,700 of costs related to this matter in the form of legal, technical, and other supporting activities. The ultimate disposition of this matter is not known, but management does not expect these costs to materially impact the City’s operations or financial condition. No provisions or reserves have been established in the accompanying financial statements regarding this matter. Asset Retirement Obligation The City has incurred certain asset retirement obligations related to the operation of its wastewater utility system. The estimated liability of the legally required closure costs for the wastewater utility system cannot be reasonably estimated as of June 30, 2019, since the specific legally required costs of retirement have not yet been identified. The City anticipates identifying those specific legally required costs and obtaining an estimate of those costs in the subsequent fiscal year. 70  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2019 16. Future Accounting Pronouncements GASB Statement 84, Fiduciary Activities, issued January 2017, will be effective for the City beginning with its fiscal year ending June 30, 2020. This Statement establishes criteria for identifying fiduciary activities of all state and local governments. The focus of the criteria generally is on (1) whether a government is controlling the assets of the fiduciary activity and (2) the beneficiaries with whom a fiduciary relationship exists. Separate criteria are included to identify fiduciary component units and postemployment benefit arrangements that are fiduciary activities. The City has not yet determined the impact that implementation of GASB 84 will have on its net position. GASB Statement 87, Leases, issued June 2017, will be effective for the City beginning with its fiscal year ending June 30, 2021. The primary objective of this Statement is to increases the usefulness of governments’ financial statements by requiring recognition of certain lease assets and liabilities for leases that previously were classified as operating leases and recognized as inflows of resources or outflows of resources based on the payment provisions of the contract. It establishes a single model for lease accounting based on the foundational principle that leases are financings the right to use an underlying asset. Under this Statement, a lessee is required to recognize a lease liability and an intangible right-to-use lease asset, and a lessor is required to recognize a lease receivable and a deferred inflow of resources, thereby enhancing the relevance and consistency of information about governments’ leasing activities. The City has not yet determined the impact that implementation of GASB 87 will have on its net position. GASB Statement 90, Majority Equity Interests (An amendment of GASB Statement 14 and 61) –issued August 2018, will be effective for the City beginning with its fiscal year ending June 30, 2020. The primary objectives of this Statement are to improve the consistency and comparability of reporting a government’s majority equity interest in a legally separate organization and to improve the relevance of financial statement information for certain component units. It defines a majority equity interest and specifies that a majority equity interest in a legally separate organization should be reported as an investment if a government’s holding of the equity interest meets the definition of an investment. A majority equity interest that meets the definition of an investment should be measured using the equity method, unless it is held by a special-purpose government engaged only in fiduciary activities, a fiduciary fund, or an endowment (including permanent and term endowments) or permanent fund. Those governments and funds should measure the majority equity interest at fair value. The City has not yet determined the impact that implementation of GASB 90 will have on its net position. GASB Statement 91, Conduit Debt Obligations – issue May 2019, will be effective for the City beginning with its fiscal year ending June 2021. The primary objectives of this Statement are to provide a single method of reporting conduit debt obligations by issuers and eliminate diversity in practice associated with (1) commitments extended by issuers, (2) arrangements associated with conduit debt obligations, and (3) related note disclosures. This Statement achieves those objectives by clarifying the existing definition of a conduit debt obligation; establishing that a conduit debt obligation is not a liability of the issuer; establishing standards for accounting and financial reporting of additional commitments and voluntary commitments extended by issuers and arrangements associated with conduit debt obligations; and improving required note disclosures. The City has not yet determined the impact that implementation of GASB 91 will have on its net position. 71  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2019 REQUIRED SUPPLEMENTARY INFORMATION 72  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2019 Budgetary Comparison Schedules (Budgetary Basis) – Year Ended June 30, 2019 GENERAL FUND Actual Variance with Budgeted Amounts Amounts Final Budget Original Final (Budget basis) Positive (Negative) Beginning Budgetary Fund Balance: $ 335,762 $ 335,762 $ 894,063 $ 558,301 Resources (Inflows): Taxes and assessments 6,636,000 6,636,000 6,823,940 187,940 Fees, licenses and permits 47,150 47,150 55,059 7,909 Charges for services 177,650 185,905 167,129 (18,776) Fines and forfeitures 213,000 213,000 268,870 55,870 Interest earned 12,500 12,500 15,174 2,674 M iscellaneous - 163,262 208,374 45,112 Intergovernmental 92,699 190,635 180,939 (9,696) Total Resources (Inflows) 7,178,999 7,448,452 7,719,485 271,033 Amounts available for appropriation 7,514,761 7,784,214 8,613,548 829,334 Charges to Appropriations (Outflows): General Government M uncipal Court 179,514 180,014 174,300 5,714 General Government 1,333,873 1,291,499 1,002,023 289,476 Human Resources 369,301 285,731 239,461 46,270 Legal 129,070 129,070 96,998 32,072 Public Safety Police 2,229,203 2,264,356 2,225,244 39,112 Fire 2,023,737 2,022,975 1,995,342 27,633 Emergency M anagement 48,482 120,345 99,824 20,521 Police Communications 396,022 396,022 351,254 44,768 Code Enforecement 113,025 116,929 116,025 904 Risk M anagement 89,370 80,316 9,054 Public Works and Streets Streets 708,147 703,147 655,537 47,610 Cemetery 347,980 364,160 315,632 48,528 Facilities 302,919 302,919 226,240 76,679 Animal Control 123,560 174,425 155,843 18,582 Culture and Recreation Parks 615,033 616,007 507,938 108,069 Swimming Pool 191,273 191,273 134,883 56,390 Library 537,674 626,387 538,312 88,075 Total Charges to Appropriations 9,648,813 9,874,629 8,915,172 959,457 Other financing sources (uses) Transfers from other funds 8,536,438 8,552,438 8,704,852 152,414 Transfers to other funds (6,404,650) (6,497,946) (6,691,367) (193,421) Total other financing sources (uses) 2,131,788 2,054,492 2,013,485 (41,007) Ending Budgetary Fund Balance $ (2,264) $ (35,923) $ 1,711,861 $ 1,747,784 See accompanying notes to this schedule. 73  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2019 Schedule Footnotes to Budgetary Comparison: 1. The budgetary comparison schedules and budgetary fund balance amounts are reported on a non- GAAP basis that report revenues on a cash basis, and expenditures in the period the invoice is received, except for payroll expenditures that are recorded when paid. In addition, obligations that are required to be funded from ending budgetary fund balances are subtracted from total ending budgetary fund balances to arrive at the unassigned budgetary fund balance. This presentation of unassigned fund balances on a budgetary basis is used to demonstrate compliance with Article 10, § 26 of the Oklahoma State Constitution. 2. The legal level of appropriation control is the department level within a fund. Transfers of appropriation within a fund require the approval of the City Manager. All supplemental appropriations require the approval of the City Council. Supplemental appropriations must be filed with the Office of the State Auditor and Inspector. 3. The budgetary basis differs from the modified accrual (GAAP) basis as shown in the schedule below: Fund Balance Net Change in Fund Balance June 30, 2018 Fund Balance June 30, 2019 Budget to GAAP Reconciliation: Fund Balance - GAAP Basis $1,162,866 $632,114 $1,794,980 Increases (Decreases): Revenues: Receivable from other governments and entities (803,696) 102,939 (700,757) Accounts receivable (185,647) (11,823) (197,470) State on behalf pension payments (539,043) (51,083) (590,126) Combining accounts (42,620) 69,358 26,738 Expenditures: Accrued payroll 295,110 (20,595) 274,515 Other expenditures 468,050 45,805 513,855 State on behalf pension payments 539,043 51,083 590,126 Fund Balance - Budgetary Basis $894,063 $817,798 $1,711,861 74  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2019 Pension Information Schedules of Required Supplementary Information SCHEDULE OF THE CITY OF MIAMI'S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY OKLAHOMA FIREFIGHTERS PENSION & RETIREMENT SYSTEM Last 10 Fiscal Years* 2015 2016 2017 2018 2019 City's proportion of the net pension liability 0.413176% 0.418954% 0.4143524% 0.4169184% 0.421250% City's proportionate share of the net pension liability $ 4,887,039 $ 4,446,809 $ 5,062,191 $ 5,243,677 $4,741,794 City's covered-employee payroll $ 1,089,326 $ 1,144,680 $ 1,159,023 $ 1,185,003 $ 1,208,603 City's proprotionate share of the net pension liability as a percentage of its covered-employee payroll 449% 388% 437% 443% 392% Plan fiduciary net position as a percentage of the total pension liability 68.12% 68.27% 64.87% 66.61% 70.73% *The amounts present for each fiscal year were determined as of 6/30 Notes to Schedule: Only the previous five fiscal years are presented because 10-year data is not yet available. SCHEDULE OF CITY CONTRIBUTIONS OKLAHOMA FIREFIGHTERS PENSION & RETIREMENT SYSTEM Last 10 Fiscal Years 2015 2016 2017 2018 2019 Statutorially required contribution $ 160,255 $ 162,264 $ 165,905 $ 169,204 $ 170,934 Contributions in relation to the statutorially required contribution 160,255 162,264 165,905 169,204 170,934 Contribution deficiency (excess) $ - $ - $ - $ - City's covered-employee payroll $ 1,144,680 $ 1,159,023 $ 1,185,033 $ 1,208,603 $ 1,220,957 Contributions as a percentage of covered-employee payroll 14.00% 14.00% 14.00% 14.00% 14.00% Notes to Schedule: Only the previous five fiscal years are presented because 10-year data is not yet available. 75  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2019 Schedules of Required Supplementary Information SCHEDULE OF THE CITY OF MIAMI PORTIONATE SHARE OF THE NET PENSION LIABILITY (ASSET) OKLAHOMA POLICE PENSION & RETIREMENT SYSTEM Last 10 Fiscal Years* 2015 2016 2017 2018 2019 City's proportion of the net pension liability (asset) 0.4416% 0.3977% 0.4577% 0.3683% 0.4088% City's proportionate share of the net pension liability (asset) $ (148,685) $ 16,217 $ 700,954 $ 29,715 $ (194,728) City's covered-employee payroll $ 1,184,882 $ 1,131,472 $ 1,201,369 $ 1,169,953 $ 1,283,171 City's proprotionate share of the net pension liability (asset) as a percentage of its covered-employee payroll 12.55% 1.43% 58.35% 2.54% 15.18% Plan fiduciary net position as a percentage of the total pension liability 101.53% 99.82% 93.50% 99.68% 101.89% *The amounts present for each fiscal year were determined as of 6/30 Notes to Schedule: Only the previous five fiscal years are presented because 10-year data is not yet available. SCHEDULE OF CITY CONTRIBUTIONS OKLAHOMA POLICE PENSION & RETIREMENT SYSTEM Last 10 Fiscal Years 2015 2016 2017 2018 2019 Statutorially required contribution $ 145,903 $ 156,178 $ 152,094 $ 162,102 $ 166,813 Contributions in relation to the statutorially required contribution 145,903 156,178 152,094 162,102 166,813 Contribution deficiency (excess) $ - $ - $ - $ - $ - City's covered-employee payroll $ 1,131,472 $ 1,201,369 $ 1,169,953 $ 1,246,941 $ 1,283,171 Contributions as a percentage of covered-employee payroll 12.89% 13.00% 13.00% 13.00% 13.00% Notes to Schedule: Only the previous five fiscal years are presented because 10-year data is not yet available. 76  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2019 Required Supplementary Information Oklahoma Municipal Retirement Fund Schedule of Changes in Net Pension Liability and Related Ratios 2015 2016 2017 2018 2019 Total pension liability Service cost $ 276,403 $ 308,701 $ 344,545 $ 330,866 $ 283,926 Interest 1,034,763 1,037,326 1,073,154 1,087,717 1,061,577 Changes of benefit terms - - - - Differences between expected and actual experience - 102,207 (202,315) (535,480) (541,596) Changes of assumptions - - - 321,010 - Benefit payments, including refunds of member contributions (997,138) (1,006,438) (964,663) (1,092,673) (1,076,009) Net change in total pension liability 314,028 441,796 250,721 111,440 (272,102) Total pension liability - beginning 13,564,650 13,878,678 14,320,474 14,571,195 14,682,635 Total pension liability - ending (a) $ 13,878,678 $ 14,320,474 $ 14,571,195 $ 14,682,635 $ 14,410,533 Plan fiduciary net position Contributions - employer $ 569,542 $ 618,748 $ 640,172 $ 650,799 $ 635,453 Contributions - member 166,578 175,420 181,046 183,989 179,680 Net investment income 1,363,071 261,920 83,267 1,149,965 755,918 Benefit payments, including refunds of member contributions (997,138) (1,006,438) (964,663) (1,092,673) (1,076,009) Administrative expense (20,151) (19,533) (18,698) (20,154) (21,162) Other - - - - Net change in plan fiduciary net position 1,081,902 30,117 (78,876) 871,926 473,880 Plan fiduciary net position - beginning 8,437,357 9,519,259 9,549,376 9,470,500 10,342,425 Plan fiduciary net position - ending (b) $ 9,519,259 $ 9,549,376 $ 9,470,500 $ 10,342,426 $ 10,816,305 Net pension liability - ending (a) - (b) $ 4,359,419 $ 4,771,098 $ 5,100,695 $ 4,340,209 $ 3,594,228 Plan fiduciary net position as a percentage of the total pension liability 68.59% 66.68% 64.99% 70.44% 75.06% Covered employee payroll $ 4,356,987 $ 4,742,831 $ 4,657,554 $ 4,735,571 $ 4,920,014 Net pension liability as a percentage of covered- 100.06% 100.60% 109.51% 91.65% 73.05% employee payroll *The amounts present for each fiscal year were determined as of 6/30 Notes to Schedule: Only the previous five fiscal years are presented because 10-year data is not yet available. 77  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2019 Required Supplementary Information Oklahoma Municipal Retirement Fund Schedule of Employer Contributions 2015 2016 2017 2018 2019 Actuarially determined contribution $ 616,160 $ 643,059 $ 592,589 $ 590,967 $ 512,617 Contributions in relation to the actuarially 616,160 643,059 623,633 635,553 647,362 determined contribution Contribution deficiency (excess) $ - $ - $ (31,044) $ (44,586) $ (134,745) Covered employee payroll $ 4,661,027 $ 4,849,681 $ 4,703,091 $ 4,792,921 $ 4,882,062 Contributions as a percentage of covered-employee payroll 13.22% 13.26% 13.26% 13.26% 13.26% Notes to Schedule: 1. Only the previous five fiscal years are presented because 10-year data is not yet available. 2. Latest Valuation Date: July 1, 2018 3. Actuarially determined contribution rate is calculated as of July 1, 2018 July 2018 through June 2019 contributions were at a rate of 10.50%. 4. Methods and assumptions used to determine contribution rates: Actuarial cost method - Entry age normal Amortization method - Level percent of payroll, closed Remaining amortization period - 29 years Asset valuation method - Actuarial: Smoothing period - 4 years Recognition method - Non-asymptotic Corridor - 70% - 130% Salary increases - 4.00% to 7.42% (varies by attained age) Investment rate of return - 7.50% 78  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2019 Required Supplementary Information – OPEB Schedule of Changes in Total OPEB Liability and Related Ratios Postemployment Health Insurance Implcit Rate Subsidy Plan 2018 2019 Total OPEB Liability Service cost $ 233,167 $ 206,592 Interest 91,262 125,031 Changes in assumptions (280,566) (378,465) Differences between expected and actual experience (17,115) Benefit payments (78,120) (103,265) Net change in total OPEB liability (34,257) (167,222) Balances at Beginning of Year 3,320,163 3,285,906 Balances End of Year $ 3,285,906 $ 3,118,684 Covered employee payroll $ 7,310,000 Total OPEB liability as a percentage of covered- employee payroll 42.66% Notes to Schedule: Only two fiscal years are presented because 10-year data is not yet available 79  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2019 OTHER SUPPLEMENTARY INFORMATION 80  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2019 Combining Balance Sheet – General Fund Accounts - June 30, 2019 Municipal Court Travel Information MCVB &Tourism General Fund Account Center Account Account Demolition Account Total General Fund ASSETS Cash and cash equivalents $ 790,996 $ 26,822 $ - $ - $ 162,456 $ 980,274 Investments 25,435 - - - - 25,435 Receivables: Accounts receivable 197,470 - - 1,000 - 198,470 Due from other funds 705,085 - - - - 705,085 Due from other accounts 10,005 - - - - 10,005 Receivable from other governments 700,757 - - 18,052 7,959 726,768 Other receivables - - 12,500 - - 12,500 Total assets $ 2,429,748 $ 26,822 $ 12,500 $ 19,052 $ 170,415 $ 2,658,537 LIABILITIES, DEFERRED INFLOWS AND FUND BALANCES Liabilities: Accounts payable and accrued liabilities $ 122,144 $ 16,622 $ 9,411 $ 15,577 $ - $ 163,754 Wages payable 274,515 - - 7,250 - 281,765 Due to other funds 64,536 - 134,962 61,700 - 261,198 Due to other accounts - 10,005 - - - 10,005 Total liabilities 461,195 26,627 144,373 84,527 - 716,722 DEFERRED INFLOWS OF RESOURCES Deferred revenue 146,835 - - - - 146,835 Fund balances: Restricted 23,213 - - - - 23,213 Assigned 1,249,037 - - - 170,415 1,419,452 Unassigned (deficit) 549,468 195 (131,873) (65,475) - 352,315 Total fund balances 1,821,718 195 (131,873) (65,475) 170,415 1,794,980 Total liabilities, deferred inflows and fund balances $ 2,429,748 $ 26,822 $ 12,500 $ 19,052 $ 170,415 $ 2,658,537 81  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2019 Combining Schedule of Revenues, Expenditures, and Changes in Fund Balance – General Fund Accounts – Year Ended June 30, 2019 Travel MCVB & Municipal Information Tourism Demolition Total General General Fund Court Account Center Account Account Account Fund REVENUES Taxes $ 5,462,516 $ - $ - $ 186,483 $ - $ 5,648,999 Intergovernmental 789,373 - - - - 789,373 Charges for services 183,790 - - 63,025 - 246,815 Fines and forfeitures 279,348 - - - 45,289 324,637 Licenses and permits 74,655 - - - - 74,655 Investment income 17,126 - - - - 17,126 Miscellaneous 259,687 - 157,413 - - 417,100 Total revenues 7,066,495 - 157,413 249,508 45,289 7,518,705 EXPENDITURES Current: General government 1,524,726 - - - 44,739 1,569,465 Public safety 5,299,386 - - - - 5,299,386 Public works and streets 1,356,458 - - - - 1,356,458 Culture and recreation 1,150,106 - - - - 1,150,106 Economic development - - 209,998 425,035 - 635,033 Debt Service: Principal 181,383 - - - - 181,383 Interest and fiscal charges 24,669 - - - - 24,669 Total expenditures 9,536,728 - 209,998 425,035 44,739 10,216,500 Excess (deficiency) of revenues over expenditures (2,470,233) - (52,585) (175,527) 550 (2,697,795) OTHER FINANCING SOURCES (USES) Transfers in - interaccount - - 1,100 107,750 - 108,850 Transfers out - interaccount (108,850) - - - - (108,850) Transfers in 8,704,852 - - - 50,000 8,754,852 Transfers out (5,424,297) - - (646) - (5,424,943) Total other financing sources and uses 3,171,705 - 1,100 107,104 50,000 3,329,909 Net change in fund balances 701,472 - (51,485) (68,423) 50,550 632,114 Fund balances - beginning 1,120,246 195 (80,388) 2,948 119,865 1,162,866 Fund balances - ending $ 1,821,718 $ 195 $ (131,873) $ (65,475) $ 170,415 $ 1,794,980 82  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2019 Combining Balance Sheet - Non-Major Governmental Funds - June 30, 2019 SPECIAL REVENUE FUNDS FISHING STREET AND DRUG FORFEITURE SUMMER RECREATION RFC 07-09 MDA-HOUSING POLICE LICENSE FUND ALLEY FUND PROGRAM GRANT FUND GRANT FUND CONSTRUCTION FUND GRANTS ASSETS Cash and cash equivalents $ 66,792 $ 2,814,603 $ 2,455 $ 265,098 $ 30,569 $ 1,902 $ 91,716 $ 15,903 Accounts receivable - - - - - - - - Due from other governments - 9,302 - - 273,940 - - - Due from other funds - 38,404 - - - - - - Total assets $ 66,792 $ 2,862,309 $ 2,455 $ 265,098 $ 304,509 $ 1,902 $ 91,716 $ 15,903 LIABILITIES, DEFERRED INFLOWS AND FUND BALANCES Liabilities: Accounts payable and accrued liabilities $ - $ 817,550 $ - $ 16,039 $ 238,950 $ 807 $ - $ 355 Wages payable - - - 11,768 - - - - Due to other funds - - - - 90,707 - - - Total liabilities - 817,550 - 27,807 329,657 807 - 355 Deferred Inflows: Deferred revenue - - - - 273,940 - - - Fund balances: Restricted 66,792 - 2,455 237,291 - 1,095 91,716 15,548 Commited - 2,044,759 - - - - - - Assigned - - - - - - - - Unassigned (deficit) - - - - (299,088) - - - Total fund balances 66,792 2,044,759 2,455 237,291 (299,088) 1,095 91,716 15,548 Total liabilities, deferred inflows and fund balances $ 66,792 $ 2,862,309 $ 2,455 $ 265,098 $ 304,509 $ 1,902 $ 91,716 $ 15,903 (continued) 83  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2019 Combining Balance Sheet - Non-Major Governmental Funds - June 30, 2019, Continued DEBT SERVICE FUND CAPITAL PROJECT FUNDS CEMETERY PARK G.O. BOND PERPETUAL MAIN STREET CAPITAL POOL DEPARTMENT SINKING FUND CARE PROJECT IMPROVEMENT FUND IMPROVEMENT FUND PROJECTS TOTALS ASSETS Cash and cash equivalents $ 142,334 $ 106,924 $ 67,776 $ 3,332,134 $ 53,045 $ 42,041 $ 7,033,292 Accounts receivable - - - 62,872 - - 62,872 Due from other governments 55,410 - - - - - 338,652 Due from other funds - - - 6,657 - - 45,061 Total assets $ 197,744 $ 106,924 $ 67,776 $ 3,401,663 $ 53,045 $ 42,041 $ 7,479,877 LIABILITIES, DEFERRED INFLOWS AND FUND BALANCES Liabilities: Accounts payable and accrued liabilities $ - $ - $ - $ 238,155 $ 25,900 $ - $ 1,337,756 Wages payable - - - - - - 11,768 Due to other funds - - - 38,404 - - 129,111 Total liabilities - - - 276,559 25,900 - 1,478,635 Deferred Inflows: Deferred revenue 55,410 - - - - - 329,350 Fund balances: Restricted 142,334 106,924 67,776 - 27,145 42,041 801,117 Commited - - - - - - 2,044,759 Assigned - - - 3,125,104 - - 3,125,104 Unassigned (deficit) - - - - - - (299,088) Total fund balances 142,334 106,924 67,776 3,125,104 27,145 42,041 5,671,892 Total liabilities, deferred inflows and fund balances $ 197,744 $ 106,924 $ 67,776 $ 3,401,663 $ 53,045 $ 42,041 $ 7,479,877 84  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2019 Combining Statement of Revenues, Expenditures, and Changes in Fund Balance – Nonmajor Governmental Funds – Year Ended June 30, 2019 SPECIAL REVENUE FUNDS SUMMER MDA-HOUSING FISHING STREET AND DRUG FORFEITURE RECREATION RFC 07-09 CONSTRUCTION POLICE LICENSE FUND ALLEY FUND PROGRAM GRANT FUND GRANT FUND FUND GRANTS REVENUES Taxes $ - $ - $ - $ - $ - $ - $ - $ - Intergovernmental 5,000 117,348 - - 90,194 - - - Charges for services - - - 204,794 - - - - Investment income - - - - - - - - Miscellaneous - 750 1,524 - 34,297 - - 103,864 Total revenues 5,000 118,098 1,524 204,794 124,491 - - 103,864 EXPENDITURES Current: General government - - - - 96,693 - - - Public safety - - - - 92,201 4,368 - 27,564 Public works - 185,872 - - - - - - Culture and recreation - - - 170,677 338,168 - - - Capital Outlay - 929,614 - - - - - - Debt Service Principal retirement - 8,969 - - - - - - Interest and fiscal charges - 1,889 - - - - - - Total Expenditures - 1,126,344 - 170,677 527,062 4,368 - 27,564 Revenues over (under) expenditures 5,000 (1,008,246) 1,524 34,117 (402,571) (4,368) - 76,300 OTHER FINANCING SOURCES (USES) Transfers in - 500,000 - 500 65,289 - - - Transfers out - (63,093) - - - - - (79,686) Total other financing sources (uses) - 436,907 - 500 65,289 - - (79,686) Net change in fund balances 5,000 (571,339) 1,524 34,617 (337,282) (4,368) - (3,386) Fund balances - beginning, restated 61,792 2,616,098 931 202,674 38,194 5,463 91,716 18,934 Fund balances - ending $ 66,792 $ 2,044,759 $ 2,455 $ 237,291 $ (299,088) $ 1,095 $ 91,716 $ 15,548 (continued) 85  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2019 Combining Statement of Revenues, Expenditures, and Changes in Fund Balance – Nonmajor Governmental Funds – Year Ended June 30, 2019, Continued DEBT SERVICE FUND CAPITAL PROJECT FUNDS CEMETERY CAPITAL POOL PARK G.O. BOND PERPETUAL MAIN STREET IMPROVEMENT IMPROVEMENT DEPARTMENT SINKING FUND CARE PROJECT FUND FUND PROJECTS TOTALS REVENUES Taxes $ 16,032 $ - $ - $ 555,764 $ - $ - $ 571,796 Intergovernmental - - - - - - 212,542 Charges for services - 9,413 - - - - 214,207 Investment earnings - - - 537 - - 537 Miscellaneous - - - 4,900 - - 145,335 Total revenues 16,032 9,413 - 561,201 - - 1,144,417 EXPENDITURES Current: General government - - - - - - 96,693 Public safety - - - - - - 124,133 Public works - - - - - - 185,872 Culture and recreation - - - - 55,850 - 564,695 Capital Outlay - 28,387 - 663,158 - - 1,621,159 Debt Service Principal retirement - - - - - - 8,969 Interest and fiscal charges - - - - - - 1,889 Total Expenditures - 28,387 - 663,158 55,850 - 2,603,410 Excess (deficiency) of revenues over expenditures 16,032 (18,974) - (101,957) (55,850) - (1,458,993) OTHER FINANCING SOURCES (USES) Transfers in - - - 771,360 - - 1,337,149 Transfers out - - - - - - (142,779) Total other financing sources and uses - - - 771,360 - - 1,194,370 Net change in fund balances 16,032 (18,974) - 669,403 (55,850) - (264,623) Fund balances - beginning restated 126,302 125,898 67,776 2,455,701 82,995 42,041 5,936,515 Fund balances - ending $ 142,334 $ 106,924 $ 67,776 $ 3,125,104 $ 27,145 $ 42,041 $ 5,671,892 86  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2019 Combining Schedule of Net Position – Special Utility Authority Accounts – June 30, 2019 Miami Special Utility Authority Accounts Utility Improvement Stormwater Rainy Day Public Utilities Account Account Account Total ASSETS Current assets: Cash and cash equivalents $ 1,936,344 $ - $ 330,653 $ 2,820,228 $ 5,087,225 Cash and cash equivalents, restricted 339,147 7,914,715 - - 8,253,862 Investments - - - 1,420,451 1,420,451 Accounts receivable, net 3,409,262 - - - 3,409,262 Other receivable 436 - - - 436 Accrued interest receivable 809 - - - 809 Inventory 1,004,129 - - - 1,004,129 Due from other accounts 141,248 - - - 141,248 Due from other funds 28,286 - - - 28,286 Total current assets 6,859,661 7,914,715 330,653 4,240,679 19,345,708 Non-current assets: Cash and cash equivalents, restricted 435,522 - - - 435,522 Investments, restricted 192,445 - - - 192,445 Capital assets: Land, construction in progress, and water rights 1,181,978 - - - 1,181,978 Other capital assets, net of accumulated depreciation 14,410,136 - - - 14,410,136 Total non-current assets 16,220,081 - - - 16,220,081 Total assets 23,079,742 7,914,715 330,653 4,240,679 35,565,789 DEFERRED OUTFLOW OF RESOURCES Deferred amounts related to pension 587,990 - - - 587,990 Deferred amounts related to OPEB 40,935 - - - 40,935 Deferred amounts related to GRDA settlement 127,012 - - - 127,012 Total deferred outflow of resources 755,937 - - - 755,937 LIABILITIES Current liabilities: Accounts payable and accrued liabilities 2,319,506 1,000 - - 2,320,506 Wages payable 119,276 - - - 119,276 Due to other accounts - - 141,248 - 141,248 Due to other funds 86,495 269,964 - - 356,459 Accrued interest payable 25,959 113,802 - - 139,761 Accrued compensated absences 12,544 - - - 12,544 Refundable deposits 41,697 - - - 41,697 Capital lease payable 270,326 - - - 270,326 Revenue bond payable - 615,000 - - 615,000 Notes payable 641,593 - - - 641,593 Total current liabilities 3,517,396 999,766 141,248 - 4,658,410 Non-current liabilities: Accrued compensated absences 112,899 - - - 112,899 Net pension liability 1,919,621 - - - 1,919,621 Total OPEB liability 1,039,561 - - - 1,039,561 Refundable deposits 374,115 - - - 374,115 Capital lease payable 312,957 - - - 312,957 Revenue bond payable - 7,996,433 - - 7,996,433 Notes payable, net 2,841,772 - - - 2,841,772 Total non-current liabilities 6,600,925 7,996,433 - - 14,597,358 Total liabilities 10,118,321 8,996,199 141,248 - 19,255,768 DEFERRED INFLOW OF RESOURCES Deferred amounts related to pensions 483,582 - - - 483,582 Deferred amounts related to OPEB 449,625 - - - 449,625 Total deferred inflow of resources 933,207 - - - 933,207 NET POSITION Net investment in capital assets 11,525,520 (8,611,433) - - 2,914,087 Restricted for debt service 697,991 119,121 - - 817,112 Unrestricted 560,640 7,410,828 189,405 4,240,679 12,401,552 Total net position $ 12,784,151 $ (1,081,484) $ 189,405 $ 4,240,679 $ 16,132,751 87  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2019 Combining Schedule of Revenues, Expenses and Changes in Net Position – Special Utility Authority Accounts - Year Ended June 30, 2019 Miami Special Utility Authority Accounts Utility Improvement Stormwater Rainy Day Public Utilities Account Account Account Total REVENUES Charges for services $ 24,693,752 $ - $ - $ - $ 24,693,752 Fees, licenses and permits - - 134,539 - 134,539 Miscellaneous 649,041 - - - 649,041 Total operating revenues 25,342,793 - 134,539 - 25,477,332 OPERATING EXPENSES Personal services 3,604,070 - 71,049 - 3,675,119 Materials and supplies 11,733,724 443 9,790 - 11,743,957 Other services and charges 3,828,550 299,398 7,937 - 4,135,885 Depreciation expense 1,523,984 - - - 1,523,984 Total operating expenses 20,690,328 299,841 88,776 - 21,078,945 Operating income (loss) 4,652,465 (299,841) 45,763 - 4,398,387 NON-OPERATING REVENUES (EXPENSES) Investment income 9,348 120,198 - 19,402 148,948 Miscellaneous 22,930 - - 11,695 34,625 Interest expense and fiscal charges (117,767) (273,985) - - (391,752) Total non-operating revenue (expenses) (85,489) (153,787) - 31,097 (208,179) Income (loss) before contrbutions and transfers 4,566,976 (453,628) 45,763 31,097 4,190,208 Transfers in, interaccount 1,348,585 844,608 1,400 372,232 2,566,825 Transfers out, interaccount (1,218,240) (754,585) - (594,000) (2,566,825) Captial contributions from governmental activities 29,952 - - - 29,952 Transfers in 6,578,421 - - - 6,578,421 Transfers out (10,532,540) - - (147,951) (10,680,491) Change in net position 773,154 (363,605) 47,163 (338,622) 118,090 Total net position - beginning, restated 12,010,997 (717,879) 142,242 4,579,301 16,014,661 Total net position - ending $ 12,784,151 $ (1,081,484) $ 189,405 $ 4,240,679 $ 16,132,751 88  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2019 Combining Schedule of Cash Flows – Special Utility Authority Accounts - Year Ended June 30, 2019 Miami Special Utility Authority Accounts Utility Improvement Stormwater Rainy Day Public Utilities Account Account Account Total CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers $ 25,610,197 $ - $ 134,539 $ 11,695 $ 25,756,431 Payments to suppliers (15,219,414) (311,671) (17,727) - (15,548,812) Payments to employees (3,820,704) - (71,049) - (3,891,753) Receipts from other funds - - 17,725 - 17,725 Payments to other funds 211,620 269,964 - - 481,584 Receipts of customer meter deposits 219,365 - - - 219,365 Refunds of customer meter deposits (200,845) - - - (200,845) Net cash provided by (used in) operating activities 6,800,219 (41,707) 63,488 11,695 6,833,695 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Transfers from other funds 6,578,421 - - - 6,578,421 Transfers to other funds (10,532,540) - - (147,951) (10,680,491) Interaccount transfer in 594,000 844,608 1,400 372,232 1,812,240 Interaccount transfer out (1,218,240) - - (594,000) (1,812,240) Net cash provided by (used in) noncapital financing activities (4,578,359) 844,608 1,400 (369,719) (4,102,070) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Capital assets purchased (324,704) (754,585) - - (1,079,289) Principal paid on debt (997,465) (195,000) - - (1,192,465) Proceeds from issuance of debt - 8,000,000 - - 8,000,000 Interest and fiscal agent fees paid on debt (121,967) (158,706) - - (280,673) Net cash provided by (used in) capital and related financing activities (1,444,136) 6,891,709 - - 5,447,573 CASH FLOWS FROM INVESTING ACTIVITIES Sale (Purchase) of investments (2,629) - - (19,402) (22,031) Interest and dividends 9,347 120,198 - 19,402 148,947 Net cash provided by investing activities 6,718 120,198 - - 126,916 Net increase (decrease) in cash and cash equivalents 784,442 7,814,808 64,888 (358,024) 8,306,114 Balances - beginning of year 1,926,571 99,907 265,765 3,178,252 5,470,495 Balances - end of year $ 2,711,013 $ 7,914,715 $ 330,653 $ 2,820,228 $ 13,776,609 Reconciliation to Statement of Net Position: Cash and cash equivalents $ 1,936,344 $ - $ 330,653 $ 2,820,228 $ 5,087,225 Restricted cash and cash equivalents - current 339,147 7,914,715 - - 8,253,862 Restricted cash and cash equivalents - noncurrent 435,522 - - - 435,522 Total cash and cash equivalents, end of year $ 2,711,013 $ 7,914,715 $ 330,653 $ 2,820,228 $ 13,776,609 Reconciliation of operating income to net cash provided by (used in) operating activities: Operating income (loss) $ 4,652,465 $ (299,841) $ 45,763 $ - $ 4,398,387 Adjustments to reconcile operating income (loss) to net cash provided by (used in) operating activities: Depreciation expense 1,523,984 - - - 1,523,984 Other nonoperating revenue 22,930 - - 11,695 34,625 Change in assets and liabilities: Receivables, net 236,845 - - - 236,845 Other receivable 7,629 - - - 7,629 Due from other funds 211,620 269,964 - - 481,584 Inventory (6,243) - - - (6,243) Deferred outflows related to pension 75,461 - - - 75,461 Deferred outflows related to OPEB 2,436 - - - 2,436 Accounts payable 349,100 (11,830) - - 337,270 Due to other funds - - 17,725 - 17,725 Due to employees (12,375) - - - (12,375) Refundable deposits 18,520 - - - 18,520 Total OPEB liability (340,530) - - - (340,530) Net pension obligation (435,365) - - - (435,365) Accrued compensated absences (18,397) - - - (18,397) Deferred inflows related to OPEB 347,231 - - - 347,231 Deferred inflows related to pension 164,905 - - - 164,905 Deferred inflows related to GRDA Settlement 3 - - - 3 Net cash provided by (used in) operating activities $ 6,800,219 $ (41,707) $ 63,488 $ 11,695 $ 6,833,695 Noncash activities: Asset acquired by capital lease $ 197,131 $ - $ - $ - $ 197,131 Asset contributed by others 29,952 - - - 29,952 $ 227,083 $ - $ - $ - $ 227,083 89  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2019 Combining Statement of Net Position – Internal Service Funds – June 30, 2019 Internal Service Funds Worker's Health Compensation Unemployment Insurance Fund Fund Fund Total ASSETS Current assets: Cash and cash equivalents $ 1,608,281 $ 180,197 $ 82,702 $ 1,871,180 Investments 127,830 - - 127,830 Other receivable 898,523 - 38,497 937,020 Total current assets 2,634,634 180,197 121,199 2,936,030 Total assets 2,634,634 180,197 121,199 2,936,030 LIABILITIES Current liabilities: Claims liability 1,217,056 - 93,567 1,310,623 Total liabilities 1,217,056 - 93,567 1,310,623 NET POSITION Unrestricted 1,417,578 180,197 27,632 1,625,407 Total net position $ 1,417,578 $ 180,197 $ 27,632 $ 1,625,407 90  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2019 Combining Statement of Revenues, Expenses and Changes in Net Position – Internal Service Funds - Year Ended June 30, 2019 Internal Service Funds Worker's Compensation Unemployment Health Insurance Fund Fund Fund Total REVENUES Charges for services $ 335,429 $ 24,871 $ 1,560,285 $ 1,920,585 Miscellaneous 308 - (73,410) (73,102) Total operating revenues 335,737 24,871 1,486,875 1,847,483 OPERATING EXPENSES Other services and charges 26,265 - 372,795 399,060 Insurance claims and expense (140,084) 12,680 1,263,145 1,135,741 Total operating expenses (113,819) 12,680 1,635,940 1,534,801 Operating income (loss) 449,556 12,191 (149,065) 312,682 NON-OPERATING REVENUES Investment income 9,812 - - 9,812 Total non-operating revenue 9,812 - - 9,812 Income (loss) before transfers 459,368 12,191 (149,065) 322,494 Transfers out (508,000) - - (508,000) Change in net position (48,632) 12,191 (149,065) (185,506) Total net position - beginning 1,466,210 168,006 176,697 1,810,913 Total net position - ending $ 1,417,578 $ 180,197 $ 27,632 $ 1,625,407 91  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2019 Combining Statement of Cash Flows – Internal Service Funds - Year Ended June 30, 2019 WORKER'S HEALTH COMPENSATION UNEMPLOYMENT INSURANCE FUND FUND FUND TOTALS CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers $ 990,429 $ 24,871 $ 1,618,743 $ 2,634,043 Payments to suppliers (26,265) - (372,865) (399,130) Claims and benefits paid (728,579) (12,680) (1,461,842) (2,203,101) Net Cash Provided by (used in) Operating Activities 235,585 12,191 (215,964) 31,812 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Transfers to other funds (508,000) - - (508,000) Net Cash Provided by (Used in) Non-Capital Financing Activities (508,000) - - (508,000) CASH FLOWS FROM INVESTING ACTIVITIES Interest and dividends 9,812 - - 9,812 Sale of investments 498,188 - - 498,188 Net Cash Provided by Investing Activities 508,000 - - 508,000 Net Increase (decrease) in Cash and Cash Equivalents 235,585 12,191 (215,964) 31,812 Balances - beginning of the year 1,372,696 168,006 298,666 1,839,368 Balances - end of the year $ 1,608,281 $ 180,197 $ 82,702 $ 1,871,180 Reconciliation to Statement of Net Position: Cash and cash equivalents $ 1,608,281 $ 180,197 $ 82,702 $ 1,871,180 Total cash and cash equivalents $ 1,608,281 $ 180,197 $ 82,702 $ 1,871,180 Reconciliation of operating income (loss) to net cash provided by (used in) operating activities: Operating income (loss) $ 449,556 $ 12,191 $ (149,065) $ 312,682 Change in assets and liabilities: Receivables, net 654,692 - 131,868 786,560 Accounts payable - - (70) (70) Claims liability (868,663) - (198,697) (1,067,360) Net Cash Provided by (used in) Operating Activities $ 235,585 $ 12,191 $ (215,964) $ 31,812 92  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2019 Combining Schedule of Cash Flows – Discretely Presented Component Units - Year Ended June 30, 2019 MCFA MDRA MIPFA Total CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers $ 350,322 $ 408,664 $ 45,536 $ 804,522 Payments to suppliers (57,553) (288,809) (13,004) (359,366) Payments to employees (541) (109,111) - (109,652) Net Cash Provided by Operating Activities 292,228 10,744 32,532 335,504 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Capital assets purchased (250,810) - (23,350) (274,160) Net Cash Provided by (Used in) Capital and Related Financing Activities (250,810) - (23,350) (274,160) CASH FLOWS FROM INVESTING ACTIVITIES Interest and dividends - - 121 121 Net Cash Provided by Investing Activities - - 121 121 Net Increase in Cash and Cash Equivalents 41,418 10,744 9,303 61,465 Balances - beginning of the year 125,976 17,835 102,055 245,866 Balances - end of the year $ 167,394 $ 28,579 $ 111,358 $ 307,331 Reconciliation to Statement of Net Position: Cash and cash equivalents $ 167,394 $ 28,579 $ 111,358 307,331 Total cash and cash equivalents $ 167,394 $ 28,579 $ 111,358 $ 307,331 Reconciliation of operating income (loss) to net cash provided by operating activities: Operating income (loss) (81,653) (130,821) 6,652 ($205,822) Adjustments to reconcile operating income (loss) to net cash provided by operating activities: Depreciation expense 239,157 2,526 25,600 267,283 Other nonoperating revenue 180,634 145,716 - 326,350 Change in assets and liabilities: Other receivable (74,733) - - (74,733) Accounts payables 28,823 (4,025) 280 25,078 Accrued compensated absences - (2,652) - (2,652) Net Cash Provided by Operating Activities $ 292,228 $ 10,744 $ 32,532 $ 335,504 93  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2019 Schedule of Federal Awards Federal Grantor/ Pass-through Federal C.F.D.A. Grantor/Program Title Number Grant I.D. Number Award Amount Expenditures Institute of Museum and Library Services Pass through Oklahoma Department of Libraries Literacy Grant 45.310 F-19-058 $ 300 $ 300 English Language Instruction 45.310 F-19-122 5,000 1,049 Health literacy 45.310 F-19-037 9,000 3,916 Subtotal Grants to States 45.310 14,300 5,265 Pass through Oklahoma Humanities Council Promotion of the Humanities 45.168 Y-19.005 1,000 659 Promotion of the Humanities 45.168 Y-18.057 1,000 1,000 Total Institute of Museum and Library Sciences 2,000 1,659 Total Institute of Museum and Library Services 16,300 6,924 Department of the Interior Pass through Oklahoma Department of Interior Outdoor Recreation Acquistion, Development and Planning 15.916 40-01231 291,825 269,319 Department of Homeland Security . Assistance to Firefighters grant 97.044 EMW-2017-FO-03596 8,200 7,808 Pass through Oklahoma Emergency Management Saferoom 97.039 FEMA 4256 192,000 13,835 Hazaard Mitigation Grant 97.039 FEMA DR 4315 23,123 23,123 Total Department of Homeland Security 223,323 44,766 Department of Agriculture Community Facilities Loans and grants 10.766 USDA 33,600 33,600 Department of Justice JAG 16.738 JAG-LLE-2018-MI AMI CI -00023 10,000 10,000 US Department of Transportation Airport Improvement Program 20.106 3-40-0059-019-0217 426,120 270,515 Total Federal Awards $ 1,001,168 $ 635,124 Notes to Schedule of Expenditures of Federal Awards Note A - Significant Accounting Policies - The accompanying schedule of expenditures of federal awards is prepared on the basis of accounting consistent with the definition of federal awards expended in the Uniform Guidance. 94  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2019 INTERNAL CONTROL AND COMPLIANCE INFORMATION 95  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2019 THIS PAGE INTENTIONALLY LEFT BLANK 96 INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS The Honorable Mayor and Members of the City Council City of Miami, Oklahoma We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business- type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the City of Miami, Oklahoma (the “City”), as of and for the year ended June 30, 2019, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements, and have issued our report thereon dated February 11, 2020. Other auditors audited the financial statements of the Miami Industrial Authority (“MIDA”), as described in our report on the City’s financial statements. This report does not include the results of the other auditor’s testing of internal controls over financial reporting or compliance and other matters that are reported separately by those auditors. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the City’s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or, significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. 97 309 N. Bryant Ave. • Edmond, OK 73034 • 405.348.0615 • Fax 405.348.0931 • www.jmacpas.com Member of AICPA and OSCPA Compliance and Other Matters As part of obtaining reasonable assurance about whether the City’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed an instance of noncompliance or other matters that are required to be reported under Government Auditing Standards and which are described in the accompanying schedule of findings and questioned costs as item 2019-001. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. February 11, 2020 98 CITY OF MIAMI, OKLAHOMA SCHEDULE OF FINDINGS AND RESPONSES Year Ended June 30, 2019 Finding 2019-001 Negative Fund Balances Criteria: State law does not permit the City to incur deficit fund balances. Condition: At June 30, 2019, the Grant Fund reported a deficit fund balance of $299,088. Cause: Allowable expenditures incurred by the City had not been reimbursed by the granting agency which resulted in a deficit fund balance at year-end. Effect: Delays in requesting or receiving grant reimbursements can cause negative fund balances until those funds are received by the City from the granting agency. Recommendation: We recommend that the City ensure policies are in place to monitor its fund balance when large unreimbursed grant funds exist. City’s Response: The Route 66 splash pad project is a reimbursable grant. The project period was from September 2017 through December 2019. The work for the splash pad was performed throughout FY 18- 19 and both completion and reimbursement were expected that fiscal year. However, due to various construction errors/issues the project continued. Reimbursement is expected in the 3rd quarter of FY 19- 20. The grant fund is a participant in pooled cash, which allows use of pooled cash reserves until reimbursement occurs. In the future we will be more cautious in reconciling regarding transfers of matching funds. 99