ANNUAL FINANCIAL STATEMENTS AND INDEPENDENT AUDITOR’S REPORTS AS OF AND FOR THE FISCAL YEAR ENDED JUNE 30, 2021 THE CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL STATEMENTS AND INDEPENDENT AUDITOR’S REPORTS AS OF AND FOR THE FISCAL YEAR ENDED JUNE 30, 2021  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2021 THIS PAGE INTENTIONALLY LEFT BLANK 2  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2021 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 ………………………………………………… 33-70 Required Supplementary Information: Budgetary Comparison Information Budgetary Comparison Schedule (Budgetary Basis) – General Fund………………………… 72 Footnotes to Budgetary Comparison Schedule………………………………………………… 73 Pension and OPEB Plan Information Schedules of Pension Information…………………………………………………………… 74-77 Schedule OPEB Information ………………………………………………………………… 78 3  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2021 Supplementary Information: Combining Balance Sheet – General Fund Accounts…………………………………………… 80 Combining Schedule of Revenues, Expenditures and Changes in Fund Balance – General Fund Accounts ………………………………………………………………………………………… 81 Combining Balance Sheet - Non-Major Governmental Funds………………………………… 82-83 Combining Statement of Revenues, Expenditures and Changes in Fund Balance - Non-Major Governmental Funds…………………………………………………………………………… 84-85 Combining Schedule of Net Position – Miami Special Utilities Authority - Enterprise Fund Accounts……………………………………………………………………………………………86 Combining Schedule of Revenues, Expenses and Changes in Net Position– Miami Special Utilities Authority – Enterprise Fund Accounts ………………………………………………………… 87 Combining Schedule of Cash Flows – Miami Special Utilities Authority – Enterprise Fund Accounts………………………………………………………………………………………… 88 Combining Statement of Net Position – Internal Service Funds……………………………….… 89 Combining Statement of Revenues, Expenses and Changes in Net Position– Internal Service Funds…………………………………………………………………………………………….. 90 Combining Statement of Cash Flows – Internal Service Funds………………………………… 91 Combining Statement of Cash Flows – Discretely Presented Component Units ……………… 92 Schedule of Expenditures of Federal Awards………………………………………………… 93 Schedule of Expenditures of State Awards………………………………………………… 94 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, 2021, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. 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 11 percent, 8 percent, and 18 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, 2021, and the respective changes in financial position, and, where applicable, cash flows thereof, for the year then ended in accordance with accounting principles generally accepted in the United States of America. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, 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 December 6, 2021, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is 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. December 6, 2021 6  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2021 MANAGEMENT DISCUSSION AND ANALYSIS 7  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2021 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, 2021. Please read it in conjunction with the City’s financial statements, which follow this section. FINANCIAL HIGHLIGHTS  For the fiscal year ended June 30, 2021, the City’s total net position increased by $7,518,960 or 21.8% from the prior year.  During the year, the City’s expenses for governmental activities were $13.9 million and were funded by program revenues of $3.5 million and further funded with taxes and other general revenues that totaled $11.8 million.  In the City’s business-type activities, such as utilities, program revenues exceeded expenses by $8.6 million.  At June 30, 2021, the General Fund reported an unassigned fund balance of $1,433,561.  For budgetary reporting purposes, the General Fund reported revenues above estimates of $1,226,771 or 14.6%, while expenditures were under the final appropriations by $869,506 or 8.5%. 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. 8  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2021 The City’s financial reporting entity includes the City of Miami, two blended component units, and four active discretely presented component units. 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 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. Miami Education Facilities Authority (MEFA) – public trust that promotes the development of educational facilities within the city. The trust is currently inactive. 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) 9  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2021  The City’s Funds (a presentation of the City’s major and aggregate non-major funds) 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, 2021 Reporting the City’s Most Significant Funds Fund Financial Statements The fund financial statements provide detailed information about the most significant funds – not the City as a whole. Some funds are required to be established by State law and by bond covenants. However, 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 $41,970,249 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, 2021 TABLE 1 NET POSITION (In Thousands) Gove rnme ntal % Inc. Busine ss-Type % Inc. % Inc. Activitie s (De c.) Activitie s (De c.) Total (De c.) 2021 2020 2021 2020 2021 2020 Current assets $ 11,474 $ 10,922 5% $ 20,299 $ 18,766 8% $ 31,773 $ 29,688 7% Capital assets, net 27,498 26,064 6% 29,068 24,603 18% 56,566 50,667 12% Total asse ts 38,972 36,986 5% 49,367 43,369 14% 88,339 80,355 10% De fe rre d outflows 2,738 2,617 5% 998 888 12% 3,736 3,505 7% Current liabilities 2,847 2,701 5% 4,803 4,507 7% 7,650 7,208 6% Non-current liabilities 26,493 25,667 3% 13,061 13,387 -2% 39,554 39,054 1% Total liabilitie s 29,340 28,368 3% 17,864 17,894 0% 47,204 46,262 2% De fe rre d inflows 1,849 2,050 -10% 1,051 1,097 -4% 2,900 3,147 -8% Net position Net investment capital assets 18,279 17,156 7% 17,616 12,900 37% 35,895 30,056 19% Restricted 2,943 1,789 65% 321 304 6% 3,264 2,093 56% Unrestricted (deficit) (10,701) (9,760) -10% 13,513 12,062 12% 2,812 2,302 22% Total ne t position $ 10,521 $ 9,185 15% $ 31,450 $ 25,266 24% $ 41,971 $ 34,451 22% 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 2021, the net investment in capital assets amounted to $35,895,284. 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, $3,263,996 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 $2,810,969. Explanations of significant changes displayed in Table 1 are as follows: Governmental Activities: Current liabilities – Increased $.6 million (22%) due to new capital leases issued in the current year. Business-Type Activities: Capital asset net – Increased $4.5 million (18%) due to an increase in purchase of capital assets and increases in construction in progress. Changes in Net Position For the year ended June 30, 2021, 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, 2021 TABLE 2 CHANGES IN NET POSITION (In Thousands) Governmental % Inc. Business-Type % Inc. % Inc. Activities (Dec.) Activities (Dec.) Total (Dec.) 2021 2020 2021 2020 2021 2020 Revenues Charges for service $ 920 $ 884 4% $ 28,057 $ 26,455 6% $ 28,977 $ 27,339 6% Operating grants and contributions 1,962 914 115% 422 - 100% 2,384 914 161% Capital grants and contributions 604 58 940% 552 64 763% 1,156 122 847% Taxes 9,147 7,885 16% - - - 9,147 7,885 16% Investment income 12 20 -40% 12 138 -91% 24 158 -85% M iscellaneous 194 284 -32% 3 1 100% 197 285 -31% Total revenues 12,839 10,045 28% 29,046 26,658 9% 41,885 36,703 14% Expenses General government 1,223 1,846 -34% - - - 1,223 1,846 -34% Public safety 6,539 5,421 21% - - - 6,539 5,421 21% Streets 3,556 2,820 26% - - - 3,556 2,820 26% Culture and recreation 1,284 1,456 -12% - - - 1,284 1,456 -12% Economic development 394 544 -28% - - - 394 544 -28% Interest on debt 941 831 13% - - - 941 831 13% Water - - - 2,877 1,946 48% 2,877 1,946 48% Wastewater - - - 1,680 1,544 9% 1,680 1,544 9% Sanitation - - - 2,195 1,638 34% 2,195 1,638 34% Electric - - - 13,185 13,986 -6% 13,185 13,986 -6% Airport - - - 492 419 17% 492 419 17% Total expenses 13,937 12,918 8% 20,429 19,533 5% 34,366 32,451 6% Excess (deficiency) before transfers (1,098) (2,873) 62% 8,617 7,125 21% 7,519 4,252 77% Transfers 2,434 3,187 -24% (2,434) (3,187) -24% - - - Change in net position $ 1,336 $ 314 326% $ 6,183 $ 3,938 57% $ 7,519 $ 4,252 77% Explanations of significant changes in Table 2 are as follows: Governmental Activities: Public safety- increase $1.1 million (21%) due to an increase in operational expenses. Streets – increase of $0.7 million (26%) due to an increase in street repairs and main street improvements in the current year. General government- decrease $0.6 million (33%) due to a decrease in operational expenses. Operating grants and contributions – Increase of $1.6 million (115%) due to an increase in general government and public safety grants. Capital grants and contributions – Increase of $0.5 million (941%) due to an increase in culture and recreation and public safety grants and a grant for street improvements. Business-Type Activities: Capital grants and contributions – increase of $.5 million (88%) due to an increase in water grants. 13  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2021 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.) 2021 2020 2021 2020 General government $ 1,223 $ 1,846 -34% $ (224) $ (1,718) -87% Public safety 6,539 5,421 21% (5,299) (4,517) 17% Streets 3,556 2,820 26% (3,294) (2,613) 26% Culture, parks and recreation 1,284 1,456 -12% (518) (1,101) -53% Economic development 394 544 -28% (175) (282) -38% Interest on long-term debt 941 831 -13% (941) (831) 13% Total $ 13,937 $ 12,918 8% ($10,451) $ (11,062) -6% For the year ended June 30, 2021 total expenses for governmental activities amounted to approximately $13.9 million which was an increase from the prior year of 8%. 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. 2021 2020 2021 2020 Water $ 2,877 $ 1,946 48% $ 1,181 $ 1,089 8% Wastewater 1,680 1,544 9% 874 645 36% Sanitation 2,195 1,638 34% 525 997 -47% Electric 13,185 13,986 -6% 5,909 4,488 32% Airport 492 419 17% 113 (234) -148% Total $ 20,429 $ 19,533 5% $ 8,602 $ 6,985 23% The City’s business-type activities include utility services for water, electric, wastewater, sanitation and airport. 14  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2021 In reviewing the business-type activities net (expense)/revenue, the following highlights should be noted:  Total business-type activities reported net revenues of $8,605,929 for the year ended June 30, 2021. A FINANCIAL ANALYSIS OF THE CITY’S FUNDS As the City completed its 2021 fiscal year, the governmental funds reported a combined fund balance of $7.8 million or a 2.5% decrease of $200,310. The enterprise funds reported combined net position of $30.2 million or a 24.3% increase from 2020. Fund Balance/Net Position Governmental Funds Proprietary Funds Restricted $ 2,986,925 Net investment in capital assets $ 17,615,786 Committed 324,465 Restricted for debt service and other 321,474 Assigned 3,040,122 Unrestricted 12,231,921 Unassigned 1,433,561 Total Fund Balance $ 7,785,073 Total Net Position $ 30,169,181 General Fund Budgetary Highlights For budgetary reporting purposes, the General Fund reported revenues above estimates of $1,226,771or 14.6%, while expenditures were under the final appropriations by $869,506 or 8.5%. CAPITAL ASSET AND DEBT ADMINISTRATION Capital Assets At the end of June 30, 2021, the City had $56.6 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 increase of $5.9 million or 11.6% from the prior year. TABLE 5 Capital Assets (In Thousands) (Net of accumulated depreciation) Governmental Business-Type Activities Activities Total 2021 2020 2021 2020 2021 2020 Land $ 4,601 $ 4,601 $ 780 $ 765 5,381 $ 5,366 Buildings 6,384 6,725 7,773 8,250 14,157 14,975 M achinery, furniture and equipment 2,895 1,956 4,890 4,580 7,785 6,536 Infrastructure 13,504 11,873 12,579 7,647 26,083 19,520 Construction in progress 114 909 3,046 3,361 3,160 4,270 Totals $ 27,498 $ 26,064 $ 29,068 $ 24,603 $ 56,566 $ 50,667 15  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2021 This year’s more significant capital asset additions placed into service included: Main street project phase III $1,531,793 Central Ave streets $565,918 Peterbilt 20/Heil Odyssey refuse truck $369,500 Fire pumper truck $311,328 Fire tanker truck $304,491 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 $30.7 million in long-term debt outstanding which represents a $0.2 million decrease, or 0.6%, 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 2021 2020 2021 2020 2021 2020 Accrued absences $ 655 $ 540 $ 184 $ 165 $ 839 $ 705 Revenue Bonds 17,470 17,925 7,365 8,000 24,835 25,925 Bond Premium (Discount) 166 186 67 97 233 283 Notes Payable- Direct borrowing - - 3,587 3,138 3,587 3,138 Capital Leases 774 309 434 518 1,208 827 Totals $ 19,065 $ 18,960 $ 11,637 $ 11,918 $ 30,702 $ 30,878 See Note 8 to the financial statements for more detail information on the City’s long-term debt and changes therein. The Upcoming Year The City’s FY 2021-2022 budget is expected to remain level with a few exceptions. The first half of the $2.2M in American Rescue Plan Act (ARPA), associated with the Coronavirus Local Fiscal Recover Funds, monies received will be budgeted per the eligible categories. The continued electric, water, and wastewater utility rate increases will fund the needed electric, water, and wastewater system improvements to include substation upgrades and line replacement. 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. Utility funds will continue to repay the utility bonds and loans for these projects. The primary sources of revenue for the City of Miami are sales tax and utility (electric, water, and wastewater) revenues. Sales tax requires a vote of the people and cannot be adjusted without the people’s consent. The online sales tax collections, located within our use tax, continues to have a positive impact 16  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2021 on our budget capacity. The City continually looks for ways to enhance our revenue base that will assist in the completion of major infrastructure and development projects. The Covid-19 pandemic that hit our community in March of 2020 continues to affect decision making. Spending remains optimistically cautious as our use and sales tax revenues remain positively affected. Sales tax for FY 20/21 ended up 16.74% and use tax up 38.79% over the previous year. We do not expect this trend to continue, but with the current inflation it may. 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 its 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. New leadership as of 7/1/2020, City manager and mayor, has not changed our direction on this important matter to date. 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, 2021 BASIC FINANCIAL STATEMENTS – GOVERNMENT-WIDE 18  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2021 Statement of Net Position– June 30, 2021 Discretely Presented Primary Government Component Units Governmental Business-type Activities Activities Total ASSETS Cash and equivalents $ 9,847,932 $ 11,654,653 $ 21,502,585 $ 767,905 Investments 167,919 1,660,153 1,828,072 - Accounts receivable, net 330,945 3,929,042 4,259,987 - Due from other governments 1,287,299 479,640 1,766,939 - Other receivables 1,094,510 436 1,094,946 19,627 Internal balances (1,254,377) 1,254,377 - - Inventory - 1,320,259 1,320,259 - Capital Assets Land and construction in progress 4,714,893 3,826,643 8,541,536 350,792 Other capital assets, net of depreciation 22,783,108 25,241,582 48,024,690 8,471,245 Total assets 38,972,229 49,366,785 88,339,014 9,609,569 DEFERRED OUTFLOWS: Deferred amounts related to pensions 2,210,165 679,120 2,889,285 - Deferred amounts related to OPEB 246,482 219,282 465,764 - Deferred amount on refunding 281,092 - 281,092 - Deferred amount related to GRDA settlement - 99,788 99,788 - Total deferred outflows of resources 2,737,739 998,190 3,735,929 - LIABILITIES Accounts payable and accrued liabilities 1,296,521 2,957,043 4,253,564 8,286 Claims liability 818,976 - 818,976 - Accrued interest payable 44,403 117,356 161,759 - Long-term liabilities Due within one year 687,564 1,728,584 2,416,148 284,065 Due in more than one year 26,492,856 13,061,110 39,553,966 - Total liabilities 29,340,320 17,864,093 47,204,413 292,351 DEFERRED INFLOWS: Deferred amounts related to pensions 942,615 383,448 1,326,063 - Deferred amounts related to OPEB 906,259 667,959 1,574,218 - Total deferred inflows of resources 1,848,874 1,051,407 2,900,281 - NET POSITION: Net investment in capital assets 18,279,498 17,615,786 35,895,284 8,543,375 Restricted 2,942,522 321,474 3,263,996 - Unrestricted (deficit) (10,701,246) 13,512,215 2,810,969 773,843 Total net position $ 10,520,774 $ 31,449,475 $ 41,970,249 $ 9,317,218 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, 2020 Statement of Activities –Year Ended June 30, 2021 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 $ 1,223,303 $ 166,872 $ 816,281 $ 16,000 $ (224,150) $ - $ (224,150) $ - Public Safety 6,539,110 279,891 854,653 106,043 (5,298,523) - (5,298,523) - Public Works and Streets 3,556,210 108,219 130,102 24,000 (3,293,889) - (3,293,889) - Culture and Recreation 1,284,295 171,844 135,907 458,224 (518,320) - (518,320) - Economic Development 394,085 193,377 25,315 - (175,393) - (175,393) - Interest on long-term Debt 940,526 - - - (940,526) - (940,526) - Total governmental activities 13,937,529 920,203 1,962,258 604,267 (10,450,801) - (10,450,801) - Business-type activities Water 2,877,297 3,579,791 378,866 100,000 - 1,181,360 1,181,360 - Wastewater 1,679,387 2,553,334 - - - 873,947 873,947 - Sanitation 2,195,006 2,719,632 - - - 524,626 524,626 - Electric 13,184,948 19,093,934 - - - 5,908,986 5,908,986 - Airport 491,878 110,076 43,000 451,740 - 112,938 112,938 - Total business-type activities 20,428,516 28,056,767 421,866 551,740 - 8,601,857 8,601,857 - Total primary government $ 34,366,045 $ 28,976,970 $ 2,384,124 $ 1,156,007 (10,450,801) 8,601,857 (1,848,944) - Component Units Culture and Recreation $ 554,041 $ 316,755 $ 105,012 $ - (132,274) Economic Development 77,012 103,579 - - 26,567 Total component units $ 631,053 $ 420,334 $ 105,012 $ - (105,707) General revenues: Taxes: Sales and use taxes 8,611,226 - 8,611,226 - Property tax 16,889 - 16,889 - Franchise and public service taxes 327,900 - 327,900 - Hotel/motel taxes 191,316 - 191,316 - Investment income 11,619 11,827 23,446 184 Miscellaneous 193,449 3,678 197,127 - Transfers - internal activity 2,434,330 (2,434,330) - - Total general revenues and transfers 11,786,729 (2,418,825) 9,367,904 184 Change in net position 1,335,928 6,183,032 7,518,960 (105,523) Net position - beginning 9,184,846 25,266,443 34,451,289 9,422,741 Net position - ending $ 10,520,774 $ 31,449,475 $ 41,970,249 $ 9,317,218 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, 2021 BASIC FINANCIAL STATEMENTS - GOVERNMENTAL FUNDS 21  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2021 Governmental Funds Balance Sheet - June 30, 2021 Capital Other Total Improvement Governmental Governmental General Fund Fund Funds Funds ASSETS Cash and cash equivalents $ 3,345,131 $ 587,590 $ 3,611,218 $ 7,543,939 Investments 2,008 - 34,437 36,445 Receivables: Accounts receivable 232,040 98,905 - 330,945 Due from other funds 87,621 6,657 38,404 132,682 Due from other accounts 9,736 - - 9,736 Due from other governments and entities 957,095 - 330,204 1,287,299 Other receivables 11,279 - - 11,279 Total assets $ 4,644,910 $ 693,152 $ 4,014,263 $ 9,352,325 LIABILITIES, DEFERRED INFLOWS AND FUND BALANCES Liabilities: Accounts payable and accrued liabilities $ 160,351 $ 139,117 $ 661,183 $ 960,651 Wages payable 326,377 - 9,493 335,870 Due to other funds 68,361 38,404 - 106,765 Due to other accounts 9,736 - 9,736 Total liabilities 564,825 177,521 670,676 1,413,022 DEFERRED INFLOWS OF RESOURCES Deferred revenue 98,820 - 55,410 154,230 Fund balances: Restricted 23,213 - 2,963,712 2,986,925 Commited - - 324,465 324,465 Assigned 2,524,491 515,631 - 3,040,122 Unassigned 1,433,561 - - 1,433,561 Total fund balances 3,981,265 515,631 3,288,177 7,785,073 Total liabilities, deferred inflows and fund balances $ 4,644,910 $ 693,152 $ 4,014,263 $ 9,352,325 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, 2021 Governmental Funds Statement of Changes in Fund Balances – Year Ended June 30, 2021 Capital Other Total Improvement Governmental Governmental General Fund Fund Funds Funds REVENUES Taxes $ 6,816,565 $ 746,313 $ 1,390,439 $ 8,953,317 Intergovernmental 1,427,469 24,000 763,994 2,215,463 Charges for services 185,547 - 211,416 396,963 Fines and forfeitures 263,098 - - 263,098 Licenses and permits 101,275 - - 101,275 Investment income 10,930 666 23 11,619 Miscellaneous 338,842 147 409,324 748,313 Total revenues 9,143,726 771,126 2,775,196 12,690,048 EXPENDITURES Current: General government 1,014,366 - 3,415 1,017,781 Public Safety 5,791,950 - 161,462 5,953,412 Public works and streets 1,508,733 - 2,314,259 3,822,992 Culture and recreation 1,186,012 - 393,672 1,579,684 Economic development 427,473 - - 427,473 Capital Outlay 871,457 2,156,900 97,405 3,125,762 Debt Service: Principal 257,176 52,835 465,539 775,550 Interest and other charges 12,288 - 539,956 552,244 Total expenditures 11,069,455 2,209,735 3,975,708 17,254,898 Excess (deficiency) of revenues over expenditures (1,925,729) (1,438,609) (1,200,512) (4,564,850) OTHER FINANCING SOURCES (USES) Debt proceeds 871,457 - - 871,457 Transfers in 10,872,588 497,358 2,921,339 14,291,285 Transfers out (7,675,923) (1,230,525) (1,891,754) (10,798,202) Total other financing sources and uses 4,068,122 (733,167) 1,029,585 4,364,540 Net change in fund balances 2,142,393 (2,171,776) (170,927) (200,310) Fund balances - beginning 1,838,872 2,687,407 3,459,104 7,985,383 Fund balances - ending $ 3,981,265 $ 515,631 $ 3,288,177 $ 7,785,073 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, 2021 Reconciliation of Governmental Funds and Government-Wide Financial Statements: Total fund balance, governmental funds $ 7,785,073 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. 27,498,001 Certain long-term assets are not available to pay for current fund liabilities and, therefore, are deferred in the funds. 154,230 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. Pension related deferred outflows 2,210,165 OPEB related deferred outflows 246,482 Deferred amounts on refunding 281,092 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 (773,706) Interest payable (44,403) Net pension liability (6,620,920) Pension related deferred inflows (942,615) Total OPEB liability (1,494,748) OPEB related deferred inflows (906,259) Accrued compensated absences (655,457) Unamortized debt premium (165,589) Revenue bond payable (17,470,000) 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 1,419,428 Net Position of Governmental Activities in the Statement of Net Position $ 10,520,774 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, 2021 Changes in Fund Balances – Changes in Net Position Reconciliation: Net change in fund balances - total governmental funds: $ (200,310) 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 3,512,174 Depreciation expense (1,857,828) Disposed capital assets (134,274) 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. (240,105) 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 6,324 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 proceeds (871,457) Capital lease principal payments, net of forgiven leases of $86,369 320,550 Revenue bond principal payments 455,000 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 758 Change in accrued compensated absences (115,723) Change in total OPEB liability 8,892 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 520,417 Change in net position of governmental activities $ 1,335,928 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, 2021 BASIC FINANCIAL STATEMENTS - PROPRIETARY FUNDS 26  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2021 Proprietary Funds Statement of Net Position - June 30, 2021 Enterprise Funds Miami Special Utility Internal Authority Airport Fund Total Service Funds ASSETS Current assets: Cash and cash equivalents $ 3,880,575 $ 52,329 $ 3,932,904 $ 2,303,993 Cash and cash equivalents, restricted 7,720,554 - 7,720,554 - Investments 1,462,069 - 1,462,069 131,474 Accounts receivable, net 3,890,987 38,055 3,929,042 - Other receivable 436 394,215 394,651 1,083,231 Accrued interest receivable - - - - Inventory 1,296,120 24,139 1,320,259 - Due from other governments 85,425 - 85,425 - Due from other funds 32,111 30,128 62,239 208,585 Total current assets 18,368,277 538,866 18,907,143 3,727,283 Non-current assets: Cash and cash equivalents, restricted 1,195 - 1,195 - Investments, restricted 198,084 - 198,084 - Capital assets: Land, construction in progress, and water rights 3,216,807 609,836 3,826,643 - Other capital assets, net of accumulated depreciation 21,516,126 3,725,456 25,241,582 - Total non-current assets 24,932,212 4,335,292 29,267,504 - Total assets 43,300,489 4,874,158 48,174,647 3,727,283 DEFERRED OUTFLOW OF RESOURCES Deferred amounts related to pensions 678,543 577 679,120 - Deferred amounts related to OPEB 219,282 - 219,282 - Deferred amounts related to GRDA settlement 99,788 - 99,788 - Total deferred outflow of resources 997,613 577 998,190 - LIABILITIES Current liabilities: Accounts payable and accrued liabilities 2,216,072 568,918 2,784,990 - Claims liability - - - 818,976 Wages payable 169,972 2,081 172,053 - Due to other funds 86,308 1,848 88,156 208,585 Accrued interest payable 117,356 - 117,356 - Accrued compensated absences 17,691 135 17,826 - Refundable deposits 37,147 - 37,147 - Capital lease payable 289,135 - 289,135 - Revenue bond payable 660,000 - 660,000 - Notes payable 724,476 - 724,476 - Total current liabilities 4,318,157 572,982 4,891,139 1,027,561 Non-current liabilities: Accrued compensated absences 164,720 1,212 165,932 - Net pension liability 1,795,494 - 1,795,494 - Total OPEB liability 987,357 - 987,357 - Refundable deposits 333,165 - 333,165 - Capital lease payable 144,620 - 144,620 - Revenue bond payable 6,704,385 - 6,704,385 - Notes payable, net 2,930,157 - 2,930,157 - Total non-current liabilities 13,059,898 1,212 13,061,110 - Total liabilities 17,378,055 574,194 17,952,249 1,027,561 DEFERRED INFLOW OF RESOURCES Deferred amounts related to pensions 378,978 4,470 383,448 - Deferred amounts related to OPEB 667,959 - 667,959 - Total deferred inflow of resources 1,046,937 4,470 1,051,407 - NET POSITION Net investment in capital assets 13,280,494 4,335,292 17,615,786 - Restricted for debt service 321,474 - 321,474 - Unrestricted (deficit) 12,271,142 (39,221) 12,231,921 2,699,722 Total net position $ 25,873,110 $ 4,296,071 30,169,181 $ 2,699,722 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 $ 1,280,294 reported as interfund balances Total net position per Government-Wide financial statements $ 31,449,475 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, 2021 Proprietary Funds Statement of Changes in Net Position - Year Ended June 30, 2021 Enterprise Funds Miami Special Utility Internal Service Authority Airport Fund Total Fund REVENUES Charges for services $ 27,063,398 $ 113,750 $ 27,177,148 $ 1,946,095 Fees, licenses and permits 133,611 - 133,611 - Miscellaneous 1,065,559 - 1,065,559 651,953 Total operating revenues 28,262,568 113,750 28,376,318 2,598,048 OPERATING EXPENSES Personal services 3,849,791 41,587 3,891,378 - Materials and supplies 11,214,602 117,749 11,332,351 - Other services and charges 2,996,722 44,120 3,040,842 440,015 Insurance claims and expense - - - 1,258,625 Depreciation expense 1,858,978 288,422 2,147,400 - Total operating expenses 19,920,093 491,878 20,411,971 1,698,640 Operating income (loss) 8,342,475 (378,128) 7,964,347 899,408 NON-OPERATING REVENUES (EXPENSES) Investment income 11,825 2 11,827 772 Miscellaneous 67,586 5 67,591 - Capital grant 100,000 494,740 594,740 - Interest expense and fiscal charges (311,990) - (311,990) - Total non-operating revenue (expenses) (132,579) 494,747 362,168 772 Income (loss) before contrbutions and transfers 8,209,896 116,619 8,326,515 900,180 Contributed assets- governmental activities 969,837 - 969,837 - Transfers in 8,885,986 455 8,886,441 - Transfers out (12,290,608) - (12,290,608) (88,916) Change in net position 5,775,111 117,074 5,892,185 811,264 Total net position - beginning 20,097,999 4,178,997 24,276,996 1,888,458 Total net position - ending $ 25,873,110 $ 4,296,071 $ 30,169,181 $ 2,699,722 Change in net position above 5,892,185 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 290,847 Change in Business-Type Activities in Net Position per Government-Wide Financial Statements $ 6,183,032 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, 2021 Proprietary Funds Statement of Cash Flows - Year Ended June 30, 2021 Enterprise Funds Miami Special Utility Internal Service Authority Airport Fund Total Fund CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers $ 28,196,800 $ 115,095 $ 28,311,895 $ 1,910,166 Payments to suppliers (14,437,008) (17,849) (14,454,857) (440,575) Payments to employees (4,056,724) (54,129) (4,110,853) - Receipts from other funds 54,122 - 54,122 - Payments to other funds (142,090) - (142,090) - Receipts of customer meter deposits 163,930 - 163,930 - Refunds of customer meter deposits (174,410) - (174,410) - Claims and judgments paid - - - (1,064,475) Net cash provided by operating activities 9,604,620 43,117 9,647,737 405,116 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Transfers from other funds 8,885,986 455 8,886,441 - Transfers to other funds (12,290,608) - (12,290,608) (88,916) Net cash provided by (used in) noncapital financing activities (3,404,622) 455 (3,404,167) (88,916) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Capital assets purchased (4,675,973) (175,399) (4,851,372) - Principal paid on debt (1,938,223) - (1,938,223) - Proceeds of capital grants - 131,807 131,807 - Proceeds from debt 1,298,278 - 1,298,278 - Interest and fiscal agent fees paid on debt (354,526) - (354,526) - Net cash provided by (used in) capital and related financing activities (5,670,444) (43,592) (5,714,036) - CASH FLOWS FROM INVESTING ACTIVITIES Sale (Purchase) of investments (12,049) - (12,049) (772) Interest and dividends 12,634 2 12,636 772 Net cash provided by (used in) investing activities 585 2 587 - Net increase (decrease) in cash and cash equivalents 530,139 (18) 530,121 316,200 Balances - beginning of year 11,072,185 52,347 11,124,532 1,987,793 Balances - end of year $ 11,602,324 $ 52,329 $ 11,654,653 $ 2,303,993 Reconciliation to Statement of Net Position: Cash and cash equivalents $ 3,880,575 $ 52,329 $ 3,932,904 $ 2,303,993 Restricted cash and cash equivalents - current 7,720,554 - 7,720,554 - Restricted cash and cash equivalents - noncurrent 1,195 - 1,195 - Total cash and cash equivalents, end of year $ 11,602,324 $ 52,329 $ 11,654,653 $ 2,303,993 - Reconciliation of operating income (loss) to net cash provided by (used in) operating activities: Operating income (loss) $ 8,342,475 $ (378,128) $ 7,964,347 $ 899,408 Adjustments to reconcile operating income (loss) to net cash provided by operating activities: Depreciation expense 1,858,978 288,422 2,147,400 - Other nonoperating revenue 167,586 7 167,593 - Change in assets and liabilities: Receivables, net (233,354) 1,340 (232,014) (687,882) Due from other funds (142,090) - (142,090) - Inventory (18,880) 1,155 (17,725) - Deferred outflows related to pension (137,089) (3,370) (140,459) - Deferred outflows related to OPEB 19,181 - 19,181 - Deferred outflows related to GRDA Settlement 11,331 11,331 - Accounts payable (218,135) 142,863 (75,272) (560) Claims liability - - - 194,150 Due to other funds 54,122 - 54,122 - Due to employees 2,219 (32) 2,187 - Refundable deposits (10,480) - (10,480) - Total OPEB liability (105,211) - (105,211) - Net pension liability 32,004 - 32,004 - Accrued compensated absences 17,916 512 18,428 - Deferred inflows related to pension (100,635) (9,652) (110,287) - Deferred inflows related to OPEB 64,682 - 64,682 - Net cash provided by operating activities $ 9,604,620 $ 43,117 $ 9,647,737 $ 405,116 Noncash activities: Assets contributed by governmental activities $ 969,837 $ - $ 969,837 $ - Asset acquired by capital lease 369,500 - 369,500 - Asset acquired via accounts payable $ 422,010 - 422,010 - $ 1,761,347 $ - $ 1,761,347 $ - 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, 2021 BASIC FINANCIAL STATEMENTS – DISCRETELY PRESENTED COMPONENT UNITS 30  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2021 Discretely Presented Component Units Combining Statement of Net Position - June 30, 2021 MCFA MDRA MIDA MIPFA Total ASSETS Current assets: Cash and cash equivalents $ 248,179 $ 73,436 $ 246,360 $ 199,930 $ 767,905 Other receivable 7,665 - 11,962 - 19,627 Total current assets 255,844 73,436 258,322 199,930 787,532 Non-current assets: Capital assets: Land, construction in progress, and water rights - - 102,571 248,221 350,792 Other capital assets, net of accumulated depreciation 7,485,370 2,524 704,906 278,445 8,471,245 Total non-current assets 7,485,370 2,524 807,477 526,666 8,822,037 Total assets 7,741,214 75,960 1,065,799 726,596 9,609,569 LIABILITIES Current liabilities: Accounts payable and accrued liabilities 269 6,009 - 2,008 8,286 Accrued compensated absences - 2,927 - - 2,927 Accrued interest on notes payable - - 2,477 - 2,477 Notes payable - - 278,661 - 278,661 Total liabilities 269 8,936 281,138 2,008 292,351 NET POSITION Net investment in capital assets 7,485,370 2,524 528,815 526,666 8,543,375 Unrestricted 255,575 64,500 255,846 197,922 773,843 Total net position $ 7,740,945 $ 67,024 $ 784,661 $ 724,588 $ 9,317,218 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, 2021 Discretely Presented Component Units Combining Statement of Changes in Net Position - Year Ended June 30, 2021 MCFA MDRA MIDA MIPFA Total REVENUES Charges for services $ 118,095 $ 178,660 $ 77,755 $ 25,824 $ 400,334 Miscellaneous - 20,000 - - 20,000 Total operating revenues 118,095 198,660 77,755 25,824 420,334 OPERATING EXPENSES Personal services - 105,219 - - 105,219 Materials and supplies 306 16,352 - - 16,658 Other services and charges 42,709 135,233 13,745 3,213 194,900 Depreciation expense 251,697 2,525 20,727 28,713 303,662 Total operating expenses 294,712 259,329 34,472 31,926 620,439 Operating income (loss) (176,617) (60,669) 43,283 (6,102) (200,105) NON-OPERATING REVENUES (EXPENSES) Investment income - - 1 183 184 Miscellaneous income 20 104,992 - 4,797 109,809 Interest expense and fiscal charges - - (10,614) - (10,614) Total non-operating revenue (expenses) 20 104,992 (10,613) 4,980 99,379 Change in net position (176,597) 44,323 32,670 (1,122) (100,726) Total net position - beginning 7,917,542 22,701 751,991 725,710 9,417,944 Total net position - ending $ 7,740,945 $ 67,024 $ 784,661 $ 724,588 $ 9,317,218 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, 2021 FOOTNOTES TO BASIC FINANCIAL STATEMENTS 33  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2021 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 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. Miami Education Facilities Authority (MEFA) – public trust that promotes the development of educational facilities within the city. The trust is currently inactive. 34  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2021 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, 2021 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, 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.  Capital Improvement Fund accounts for use tax used for city capital projects for various departments. Aggregated Non-Major Funds (reported as Other Governmental Funds): Special Revenue Funds include the Fishing License Fund, Street and Alley, Drug Forfeiture Fund, Parks and Recreation Program, Grant and Donation Fund, 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 funds 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.  Street and Stadium Project Fund – is a capital project fund that accounts for a .65 cent sales tax restricted for streets and stadium projects.  Cemetery 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, 2021 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)  Health 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. 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, 2021 by these entities are as follows: 37  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2021 Maturities in Years Fair Credit On Less T ype Value Rating Demand T han One Demand deposits $ 13,512,369 N/A $ 13,512,369 $ - Cash on hand 3,395 N/A 3,395 - T ime deposits 1,828,072 N/A - 1,828,072 Money Market Funds 7,986,821 Not rated - 7,986,821 Sub-T otal $ 23,330,657 $ 13,515,764 $ 9,814,893 Reconciliation to Financial Statements: Cash and cash equivalents $ 21,502,585 Investments 1,828,072 $ 23,330,657 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, 2021: • Money Market Mutual Funds of $7,986,821 were valued using quoted market prices (Level 1 inputs). 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, 2021, the City was not exposed to custodial credit risk. Component Unit: The bank deposits of the MDRA component unit of $73,436 at June 30, 2021 were fully insured by the F.D.I.C. The bank deposits of the MCFA component unit of $248,179 at June 30, 2021 were fully insured by the F.D.I.C. The bank deposits of the MIPFA component unit of $199,930 at June 30, 2021 were fully insured by the F.D.I.C. The bank deposits of the MIDA component unit of $246,360 at June 30, 2021 were fully insured by the F.D.I.C. 38  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2021 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. 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, 2021, the investments held by the City mature between 2021 through 2022. 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, 2021. 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, 2021 are as follows: Cash and cash equivalents: Cash Restricted for Refundable deposits $ 49,524 Money Markets Restricted for Debt Service 7,671,030 $ 7,720,554 Cash and cash equivalents, noncurrent: Cash Restricted for Refundable deposits 1,195 $ 1,195 Investments: Refundable deposits $ 198,084 $ 198,084 39  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2021 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. Less: Allowance Net Accounts for Uncollectible Accounts Receivable Accounts Receivable Governmental Activities: T axes 1,291,692 $ - $ 1,291,692 Due from other governments 84,122 - 84,122 Court fines 614,803 (493,434) 121,369 Grants receivable 10,390 - 10,390 Other 1,205,181 - 1,205,181 T otal Governmental Activities $ 3,206,188 $ (493,434) $ 2,712,754 Reconciliation to Statement of Net Position: Accounts receivable, net $ 330,945 Due from other governmental agencies 1,287,299 Other receivable 1,094,510 T otal $ 2,712,754 Business-T ype Activities: Utilities $ 6,075,347 $ (2,146,305) $ 3,929,042 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. 40  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2021 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 $10,000 or more. For the year ended June 30, 2021, capital assets balances changed as follows: Balance at Transfers/ Balance at July 1, 2020 Additions Deductions June 30, 2021 PRIMARY GOVERNMENT: Governmental activities: Capital assets not being depreciated: Land $ 4,601,374 $ - $ - $ 4,601,374 Construction in progress 909,170 59,430 855,081 113,519 Total capital assets not being depreciated 5,510,544 59,430 855,081 4,714,893 Other capital assets: Buildings 23,180,501 - - 23,180,501 Infrastructure 44,861,631 2,687,938 - 47,549,569 M achinery, furniture and equipment 11,566,786 1,619,887 371,869 12,814,804 Total other capital assets at historical cost 79,608,918 4,307,825 371,869 83,544,874 Less accumulated depreciation for: Buildings 16,455,853 340,330 - 16,796,183 Infrastructure 32,988,407 1,057,217 - 34,045,624 M achinery, furniture and equipment 9,610,905 460,281 151,227 9,919,959 Total accumulated depreciation 59,055,165 1,857,828 151,227 60,761,766 Other capital assets, net 20,553,753 2,449,997 220,642 22,783,108 Governmental activities capital assets, net $ 26,064,297 $ 2,509,427 $ 1,075,723 $ 27,498,001 Restated Balance at Transfers/ Balance at July 1, 2020 Additions Deductions June 30, 2021 Business-type activities: Capital assets not being depreciated: Land $ 765,050 $ 15,250 $ - $ 780,300 Construction in progress 3,361,223 3,573,331 3,888,211 3,046,343 Total capital assets not being depreciated 4,126,273 3,588,581 3,888,211 3,826,643 Other capital assets: Buildings and utility infrastructure 21,098,912 - - 21,098,912 M achinery, furniture and equipment 18,786,385 1,182,672 19,969,057 Infrastructure 24,290,394 5,729,677 - 30,020,071 Total other capital assets at historical cost 64,175,691 6,912,349 - 71,088,040 Less accumulated depreciation for: Buildings and utility infrastructure 12,849,168 476,870 - 13,326,038 M achinery, furniture and equipment 14,206,402 872,581 15,078,983 Infrastructure 16,643,488 797,949 - 17,441,437 Total accumulated depreciation 43,699,058 2,147,400 - 45,846,458 Other capital assets, net 20,476,633 4,764,949 - 25,241,582 Business-type activities capital assets, net $ 24,602,906 $ 8,353,530 $ 3,888,211 $ 29,068,225 41  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2021 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 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 $ 263,189 Public Safety 204,929 Streets 1,111,549 Culture and Recreation 278,161 Total $ 1,857,828 Business-Type Activities: Airport $ 288,422 Electric 744,127 Water 443,347 Wastewater 426,797 Sanitation 244,707 Total $ 2,147,400 Capital assets of the component units were: M IDA Balance at Balance at August 1, 2020 Additions Deductions July 31, 2021 MIDA - Discreetly Presented Component unit Capital assets not being depreciated: Land $ 102,571 $ - $ - $ 102,571 Total capital assets not being depreciated 102,571 - - 102,571 Other capital assets: Buildings and utility infrastructure 1,036,353 - - 1,036,353 Less accumulated depreciation for: Buildings and utility infrastructure 310,720 20,727 - 331,447 Other capital assets, net 725,633 (20,727) - 704,906 M IDA capital assets, net $ 828,204 $ (20,727) $ - $ 807,477 42  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2021 M DRA Balance at Balance at July 1, 2020 Additions Deductions June 30, 2021 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 4,550 - - 4,550 M achinery, furniture and equipment 15,657 2,525 18,182 Total accumulated depreciation 20,207 2,525 - 22,732 Other capital assets, net 5,049 (2,525) - 2,524 M DRA capital assets, net $ 5,049 $ (2,525) $ - $ 2,524 M IPFA Balance at Balance at July 1, 2020 Additions Deductions June 30, 2021 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 185,585 - - 185,585 Total other capital assets at historical cost 756,509 - - 756,509 Less accumulated depreciation for: Buildings 353,948 19,681 - 373,629 M achinery, furniture and equipment 95,403 9,032 - 104,435 Total accumulated depreciation 449,351 28,713 - 478,064 Other capital assets, net 307,158 (28,713) - 278,445 M IPFA capital assets, net $ 555,379 $ (28,713) $ - $ 526,666 M CFA Balance at Balance at July 1, 2020 Additions Deductions June 30, 2021 MCFA - Discreetly Presented Component unit Other capital assets: Buildings $ 8,851,209 $ - $ - $ 8,851,209 Less accumulated depreciation for: Buildings 1,114,142 251,697 - 1,365,839 Other capital assets, net 7,737,067 (251,697) - 7,485,370 M CFA capital assets, net $ 7,737,067 $ (251,697) $ - $ 7,485,370 43  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2021 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. Re ce ivable Fund Payable Fund Amount Nature of Inte rfund Balance General Fund * Airport Fund * $ 1,313 Payroll reimbursement General Fund * MSUA * 86,308 Payroll reimbursement Street and Alley Capital Improvement Fund 38,404 Expense reimbursement Capital Improvement Fund General Fund * 6,657 Reclassification MSUA * Airport Fund * 535 Expense reimbursement MSUA * General Fund * 31,576 Posting correction Airport Fund * General Fund * 30,128 Posting correction Workers Compensation Fund Health Insurance Fund 208,585 deposit to the wrong fund T otal $ 403,506 * Denotes major fund. Due From Due T o Net Internal Reconciliation to Fund Financial Statements: Other Funds Other Funds Balances Governmental Funds $ 132,682 $ (106,765) $ 25,917 Proprietary Funds 62,239 (88,156) (25,917) Internal Service Funds 208,585 (208,585) - T otal $ 403,506 $ (403,506) $ - Reconciliation to Statement of Net Position: Net Internal Balances $ (25,917) Internal Service Fund Activity reported in Business-type Activities 1,280,294 Net Internal Balance $ 1,254,377 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, 2021 were as follows: 44  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2021 Transfe r In Transfe r O ut Amount Nature of Inte rfund Transfer General Fund * MSUA $ 9,329,279 Operating subsidy/pledged sales tax General Fund Workers Compensation Fund 88,916 Overfunding Demolition account * MSUA 50,000 Operating subsidy General Fund * Street Project 1,363,301 B Pledged sales tax Street Project * MSUA 1,370,143 A Pledged sales tax Street and alley * MSUA 456,000 A Operating subsidy Capital Improvement Fund * General Fund 20,000 Operating subsidy Capital Improvement Fund * Street and Alley 445,000 B Capital project Capital Improvement Fund Police grant 32,358 B Operating subsidy Grant Fund Police grant 10,000 A,B Operating subsidy General Fund Street and Alley 31,552 B Operating subsidy General Fund Grant Fund 9,540 B Grant matching General Fund Summer Recreation Program 10 A Budgeted Grant Fund * MSUA 1,085,186 A Budgeted Airport * General Fund 455 Budgeted Rainy Day Capital Improvement Fund 100,000 B Budgeted MSUA Capital Improvement Fund 1,130,525 Budgeted MSUA Grant Fund 3 B Refund solid waste MSUA * General Fund 7,655,458 Operating subsidy/pledged sales tax $ 23,177,726 Denotes Major Fund Subtotal non-major Govermental Funds transfers in $ 2,921,339 A Subtotal non-major Govermental Funds transfers out $ 1,891,754 B T ransfers to T ransfers from Net Reconciliation to fund financial statements: Other Funds Other Funds T ransfers Governmental Funds $ (10,798,202) $ 14,291,285 $ 3,493,083 Enterprise Funds (12,290,608) 8,886,441 (3,404,167) Internal Service Funds (88,916) - (88,916) T otals $ (23,177,726) $ 23,177,726 $ - Reconciliation to State me nt of Activities: Net T ransfers $ (3,404,167) T ransfer of assets from Governmental Activities to Business T ype Activities 969,837 T ransfers - Internal Activity $ (2,434,330) 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, 2021, the City’s long-term debt balances changed as follows: 45  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2021 Primary Government: Balance Balance Due Within Type of Debt July 1, 2020 Additions Deductions June 30, 2021 One Year Governmental Activities: Revenue Bond Premium $ 185,865 $ - $ 20,276 $ 165,589 $ - Revenue Bonds 17,925,000 - 455,000 17,470,000 465,000 Capital Lease Obligations 309,168 871,457 406,919 773,706 157,019 Accrued Compensated Absences 539,734 115,723 - 655,457 65,545 Total Governmental Activities $ 18,959,767 $ 987,180 $ 882,195 19,064,752 687,564 Plus: Total OPEB liability 1,494,748 - Net pension liability 6,620,920 - $ 27,180,420 $ 687,564 Reconcilation to Statement of Net Position: Due within one year $ 687,564 Due in more than one year 26,492,856 $ 27,180,420 Balance Balance Due Within Type of Debt July 1, 2020 Additions Deductions June 30, 2021 One Year Business-Type Activities: Notes Payable - Direct borrowings $ 3,138,121 $ 1,298,278 $ 849,023 $ 3,587,376 $ 805,478 Unamortized Bond Premium (Discount) 96,207 29,565 66,642 - Revenue Bonds 8,000,000 - 635,000 7,365,000 660,000 Capital Lease Obligations 518,455 369,500 454,200 433,755 289,135 Accrued Compensated Absences 165,330 18,428 - 183,758 17,826 Total Business-Type Activities $ 11,918,113 $ 1,686,206 $ 1,967,788 11,636,531 1,772,439 Plus: Total OPEB liability 987,357 - Net pension liability 1,795,494 - Refundable deposits 370,312 37,147 $ 14,789,694 $ 1,809,586 Reconcilation to Statement of Net Position: Due within one year $ 1,728,584 Due in more than one year 13,061,110 $ 14,789,694 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. $17,470,000 Current portion $465,000 Non-current portion 17,005,000 $17,470,000 Capital Lease Obligations: $90,154 capital lease obligation for the purchase of a crawler/dozer, matures September 2021 with a stated interest rate of 3.81%. $2,623 $304,491 capital lease obligation for the purchase of fire tanker trucks, matures August 2027 with a stated interest rate of 2.14% 270,586 46  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2021 $311,328 capital lease obligation for the purchase of police cars, matures August 2027 with a stated interest rate of 2.14%. 276,662 $255,638 capital lease obligation for the purchase of excavator, matures February 2025 with a stated interest rate of 1.67%. 202,803 $149,481 capital lease obligation for the purchase of fire rescue truck, matures March 21,2022 with a stated interest rate of 3.01%. 21,032 Total capital lease obligations $773,706 Current portion $157,019 Non-current portion 616,687 $773,706 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: $369,500 capital lease obligation for the purchase of a refuse truck, matures February 2023 with a stated interest rate of 1.50% $244,495 $285,663 capital lease obligation for the purchase of a digger derrick truck, matures July 2021 with a stated interest rate of 1.95% 114,152 $95,994 capital lease obligation for the purchase of a truck for water, matures August 2022 with a stated interest rate of 2.99%. 25,172 $86,408 capital lease obligation for the purchase of a tractor, matures July 2021 with a stated interest rate of 1.95%. 4,465 $197,131 capital lease obligation for the purchase of a roll-off truck, matures February 2022 with a stated interest rate of 3.98%. 45,471 Total Capital Leases $433,755 Current portion $289,135 Non-current portion 144,620 $433,755 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. $210,000 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. $7,155,000 Total Revenue Bonds Payable $7,365,000 Current portion $660,000 Non-current portion 6,705,000 $7,365,000 47  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2021 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. $220,000 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. 239,331 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. 410,869 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. 133,548 2019 Note payable to Oklahoma Water Resources Board, dated July 15, 2019, original amount $1,830,000 with interest rate of 4.2% due in semi-annual installments, secured by and payable from utility revenues for water, sewer, and electric system, with final payment due September 15, 2023. This note is a current refunding of the outstanding portion of the Series 2003B note and the Series 2004B note, proceeds used for capital improvements related to water and sewer systems. 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. 1,345,000 48  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2021 CWSRF Note payable to Oklahoma Water Resources Board, dated September 1, 2019, original amount $4,450,000 with interest rate of 1.24% 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 March 15, 2041. Proceeds used for capital improvements related to improvements to the wastewater system. The MUSA has drawn $49,000 of the note as of June 30. 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. 8,000 DWSRF Note payable to Oklahoma Water Resources Board, dated May 1, 2020, original amount $2,785,000 with interest rate of 1.51% and 0.5% 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 March 15, 2042. Proceeds used for improvements for the drinking water treatment system drinking water project. The MUSA has drawn $1,330,628 of the note as of June 30. 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. 1,230,629 Total Notes Payable – Oklahoma Water Resources Board $3,587,376 Current portion $724,476 Non-current portion 2,862,900 $3,587,376 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 2022 465,000 528,187 157,019 17,451 2023 475,000 518,788 137,303 10,339 2024 485,000 509,188 140,023 7,618 2025 495,000 499,387 142,798 4,843 2026 505,000 489,388 92,794 2,012 2027-2031 2,125,000 2,286,143 103,769 1,465 2032-2036 - 2,188,250 - - 2037-2041 4,435,000 1,389,950 - - 2042-2046 3,925,000 771,375 - - 2047 4,560,000 71,250 - - Total $ 17,470,000 $ 9,251,906 $ 773,706 $ 43,728 49  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2021 Business-Type Activities Notes Payable-Direct Borrowings Revenue Bonds Payable Capital Leases Payable Year Ending June 30, Principal Interest Principal Interest Principal Interest 2022 $ 805,478 $ 171,673 $ 660,000 $ 242,370 $ 289,135 $ 6,839 2023 964,952 148,582 465,000 221,325 144,620 1,922 2024 1,229,897 124,340 485,000 202,725 - - 2025 1,021,086 102,480 500,000 188,175 - - 2026 345,336 89,012 515,000 173,175 - - 2027-2031 1,549,250 371,146 2,815,000 622,075 - - 2032-2036 1,646,250 239,279 1,925,000 136,325 - - 2037-2041 1,746,250 98,495 - - - - 2042 234,250 4,034 - - - - Amount to be drawn (5,955,374) - - - - - Total $ 3,587,375 $ 1,349,041 $ 7,365,000 $ 1,786,170 $ 433,755 $ 8,761 MDRA Debt: Balance Balance Due Within Type of Debt July 1, 2020 Additions Deductions June 30, 2021 One Year Component Unit: Accrued Compensated Absences - 2,927 2,927 293 Total MDRA $ - $ 2,927 $ - $ 2,927 $ 293 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 $152,677 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 97,067 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 28,917 Total debt outstanding – MIDA $278,661 Balance Balance Due Within Type of Debt August 1, 2020 Additions Deductions July 31, 2021 One Year Component Unit: MIDA Note payable (direct borrowings) $ 332,615 $ - $ 53,954 $ 278,661 $ 278,661 Component Unit - MIDA Notes Payable - direct borrowing Year Ending June 30, Principal Interest 2022 278,661 - Total $ 278,661 $ - 50  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2021 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 2003A, 2004A, 2004C, 2005, and 2019 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 $2,442,155. The 2019 note refinanced the 2003B and 2004 B notes. Net utility revenues received in the current year were $9,378,569. Debt service payments of $929,493 for the current fiscal year were 9.9% 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 and stadium 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 $35,873,076. Pledged sales taxes received in the current year were $7,655,458. Net revenues and sales tax pledged during the year was $17,034,027. Debt service payments of $1,889,170 for the current fiscal year were 11.1% of the pledged revenue. 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, 2021 net position restricted by enabling legislation totaled $297,247. 51  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2021 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: Major Capital Project Fund Other General Capital Governmental Fund Improvement Fund Fund Total Fund Balance: Restricted For: Police operations - grants $ - $ - $ 112,315 $ 112,315 General obligation debt service - - 491,503 491,503 Capital improvements - - 135,093 135,093 Street improvements - - 609,988 609,988 Culture and rec programs 23,213 - 374,039 397,252 Economic development - - 91,716 91,716 Grant fund 1,136,444 1,136,444 Police - drug programs - - 12,614 12,614 Sub-total restricted 23,213 - 2,963,712 2,986,925 Committed for: Street operations - - 324,465 324,465 Assigned for: Capital improvements - 515,631 - 515,631 Demolition 263,166 - - 263,166 Culture and rec programs 13,772 - - 13,772 Supplement next year's budget 2,247,553 - - 2,247,553 Sub-total assigned 2,524,491 515,631 - 3,040,122 Unassigned: 1,433,561 - - 1,433,561 TOTAL FUND BALANCE $ 3,981,265 $ 515,631 $ 3,288,177 $ 7,785,073 52  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2021 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, Court, Civil Defense, fire run charges, 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, recreation fees, operating and capital grants  General Government – license and permits, fines, cemetery revenue, 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. 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, 2021, 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 53  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2021 which covers individual claims in excess $550,000 for all 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 $75,000.  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, 2019 $ 1,217,056 $ 93,567 $ - $ 1,310,623 Claims and changes in estimates (33,382) 1,071,708 20,676 1,059,002 Claims payments (680,431) (1,057,578) (6,790) (1,744,799) Claim liability, June 30, 2020 503,243 107,697 13,886 624,826 Claims and changes in estimates 471,680 750,341 6,075 1,228,096 Claims payments (642,143) (374,054) (17,749) (1,033,946) Claim liability, June 30, 2021 $ 332,780 $ 483,984 $ 2,212 $ 818,976 13. Retirement Plan Participation The following is a summary of the deferred outflows, deferred inflows and net pension liability by the various plans as of June 30, 2021: Governmental Business Type Total Deferred Outflows: Police Pension $ 761,826 $ - $ 761,826 Fire Pension 866,670 - 866,670 OkMRF 581,669 679,120 1,260,789 Total $ 2,210,165 $ 679,120 $ 2,889,285 Deferred Inflows: Police Pension $ 130,484 $ - $ 130,484 Fire Pension 467,938 - 467,938 OkMRF 344,193 383,448 727,641 Total $ 942,615 $ 383,448 $ 1,326,063 Net Pension Liability: Police Pension $ 440,848 $ - $ 440,848 Fire Pension 4,629,102 - 4,629,102 OkMRF 1,550,970 1,795,494 3,346,464 Total $ 6,620,920 $ 1,795,494 $ 8,416,414 54  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2021 Summary of Significant Accounting Policies For purposes of measuring the net pension asset, net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the Oklahoma Firefighters Pension & Retirement System (OFPRS), Oklahoma Police Pension & Retirement System (OPPRS) and Oklahoma Municipal Retirement Fund (OkMRF) and additions to/deductions from OFPRS, OPPRS and OkMRF’s fiduciary net position have been determined on the same basis as they are reported by OFPRS, OPPRS and OkMRF. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments held by these funds are reported at fair value. For purposes of measuring the total OPEB liability, deferred outflows of resources, and deferred inflows and OPEB expense for the single employer other postemployment benefit plan the measurement has been prepared in accordance with GASB Statement No. 75. 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. Eligibility Factors and Benefit Provisions As of 07/01/20 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, 2019 c. Eligibility for Distribution -Normal retirement at age 65 with 7 years of service -Early retirement at age 55 with 7 years of service -Disability retirement upon disability with 7 years of vesting (20 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 55  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2021 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 interest benefit, payable to spouse until death or spouse re- marriage. If not married, benefit is payable for 10 year certain Prior to 7 Years Service -Return of employee contribution and interest f. Benefit Authorization -Benefits are established and amended by City Council adoption of an ordinance in accordance with O.S. Title, 11, Section 48-101-102 g. Form of Benefit Payments Normal form is a 10 year or 120 months certain and life thereafter basis. Employee may elect, with City consent, option form based on actuarial equivalent. C. Employees Covered by Benefit Terms Active Employees 124 Deferred Vested Former Employees 12 Retirees or Retiree Beneficiaries 86 Total 222 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 9.45% of covered payroll as of July 1, 2020. For the year ended June 30, 2021, the City recognized $697,304 of employer contributions to the plan which is in excess of the actuarially determined amount by $145,666 based on covered payroll of $5,258,704. Employees contribute 3.75% to the plan in accordance with the plan provisions adopted by the City Council. Employee contributions for fiscal 2021 were $197,343. Actuarial Assumptions Date of Last Actuarial Valuation July 1, 2020 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 56  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2021 e. Inflation Rate 2.75% 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 D. 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, 2020 are summarized in the following table: 57  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2021 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% E. Changes in Net Pension Liability – The total pension liability was determined based on an actuarial valuation performed as of July 1, 2020 which is also the measurement date. There were no changes in assumptions or changes in benefit terms that affected measurement of the total pension liability. There were also no changes between the measurement date of July 1, 2020 and the City’s report ending date of June 30, 2021, 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 $ 14,780,230 $ 11,366,659 $ 3,413,571 Changes for the Year: Service cost 345,024 - 345,024 Interest expense 1,070,892 - 1,070,892 Experience losses (gains) - (198,240) - (198,240) (amortized over avg remain svc period of actives & inactive) Changes of assumptions - - - Contributions--City - 657,276 (657,276) Contributions--members - 185,855 (185,855) Net investment income - 465,013 (465,013) Benefits paid (1,021,818) (1,021,818) - Plan administrative expenses - (23,361) 23,361 Benefit changes due to plan amendments - - - Change in deferred contributions made subsequent to the measurement date - - - Net Changes 195,858 262,965 (67,107) Balances End of Year $ 14,976,088 $ 11,629,624 $ 3,346,464 58  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2021 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 $ 5,146,853 $ 3,346,464 $ 1,863,438 The City reported $287,594 in pension expense for the year ended June 30, 2021. At June 30, 2021, 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 $ - $ 580,873 Net difference between projected and actual earnings 263,601 - Changes in assumptions 157,813 - Changes in proportion and differences between City contributions and proportionate share of contributions 123,076 123,073 City contributions during measurement date 18,995 23,695 City contributions subsequent to the measurement date 697,304 - Total $ 1,260,789 $ 727,641 The $697,304 reported as deferred outflows of resources related to pensions resulting from City contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2022. 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: 2022 $ (214,892) 2023 (45,994) 2024 38,518 2025 58,212 2026 - $ (164,156) 59  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2021 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. 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 $173,054. The State of Oklahoma also made on- 60  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2021 behalf contributions to FPRS in the amount of $292,719 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 $389,261. 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, 2021, the City reported a liability of $4,629,102 for its proportionate share of the net pension liability. The net pension liability was measured as of June 30, 2021, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of July 1, 2020. The City’s proportion of the net pension liability was based on the City’s contributions received by the pension plan relative to the total contributions received by pension plan for all participating employers as of June 30, 2020. Based upon this information, the City’s proportion was .3758%. For the year ended June 30, 2021, the City recognized pension expense of $818,109. At June 30, 2021, 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 $ 589,981 $ 62,111 Changes of assumptions - 78,445 Net difference between projected and actual earnings on pension plan investments 68,042 - Changes in proportion 35,523 323,530 Contributions during the measurement date 70 3,852 Contributions subsequent to the measurement date 173,054 - Total $ 866,670 $ 467,938 In the year ending June 30, 2022, $173,054 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: 2022 $ 15,630 2023 111,255 2024 56,983 2025 41,810 2026 - Total $ 225,678 61  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2021 Actuarial Assumptions- The total pension liability was determined by an actuarial valuation as of July 1, 2020, using the following actuarial assumptions, applied to all prior periods included in the measurement: Inflation: 2.75% Salary increases: 2.75% to 10.5% average, including inflation Investment rate of return: 7 .5% net of pension plan investment expense Mortality rates were based on the Pub-2010 Public Safety Table, with adjustments for generational mortality improvement using scale MP-2018 for healthy lives and no mortality improvement for disabled lives. The actuarial assumptions used in the July 1, 2020, valuation were based on the results of an actuarial experience study for the period July 1, 2013, to June 30, 2018. The long-term expected rate of return on pension plan investments was determined using a building block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense, and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. Best estimates of arithmetic real rates of return for each major asset class included in the pension plan's target asset allocation as of June 30, 2020, are summarized in the following table: Target Long-Term Expected Asset Class Allocation Real Rate of Return Fixed income 20% 4.38% Domestic equity 47% 7.41% International equity 15% 9.82% Real estate 10% 7.70% Other assets 8% 5.67% Discount Rate- The discount rate used to measure the total pension liability was 7.5%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current contribution rate and that contributions from employers will be made at contractually required rates, determined by State statutes. Projected cash flows also assume the State of Oklahoma will continue contributing 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 $ 6,011,742 $ 4,629,102 $ 3,472,304 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. 62  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2021 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. 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 $171,661. The State of Oklahoma also made on- behalf contributions to OPPRS in the amount of $108,465 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 $154,678. 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, 2021, the City reported a liability of $440,848 for its proportionate share of the net pension liability. The net pension liability was measured as of June 30, 2020, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of July 1, 2020. The City’s proportion of the net pension liability was based on the City’s contributions received by the pension plan relative to the total contributions received by pension plan for 63  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2021 all participating employers as of June 30, 2020. Based upon this information, the City’s proportion was .3839%. For the year ended June 30, 2021, the City recognized pension expense of $511,800. At June 30, 2021, 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 $ 11,405 $ 119,724 Changes of assumptions 45,289 - Net difference between projected and actual earnings on pension plan investments 520,132 - Changes in proportion 12,467 5,242 Contributions during measurement date 872 5,518 Contributions subsequent to the measurement date 171,661 - Total $ 761,826 $ 130,484 In the year ending June 30, 2022, $171,661 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: 2022 $ 63,327 2023 131,756 2024 171,755 2025 100,585 2026 (7,742) Total $ 459,681 Actuarial Assumptions-The total pension liability was determined by an actuarial valuation as of July 1, 2020, using the following actuarial assumptions, applied to all prior periods included in the measurement: Inflation: 2.75% Salary increases: 3.5% to 12% 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). 64  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2021 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, 2020, valuation were based on the results of an actuarial experience study for the period July 1, 2012, to June 30, 2017. The long-term expected rate of return on pension plan investments was determined using a building block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense, and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. Best estimates of arithmetic real rates of return for each major asset class included in the pension plan's target asset allocation as of June 30, 2020, are summarized in the following table: Long-Term Expected Asset Class Real Rate of Return Fixed income 5.11% Domestic equity 6.80% International equity 11.45% Real estate 8.60% Private Equity 11.58% Commodities 0.00% 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. 65  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2021 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) $ 1,557,339 $ 440,848 $ (503,468) 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 . 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, 2021, employees contributed $106,091 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, 2021. 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 retirees and their spouses until they reach age 65 or qualify for medicare. 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. 66  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2021 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 20+ years of creditable service in with the City. The amount of benefit payments during fiscal year June 30, 2021 were $91,824. Employees Covered by Benefit Terms Active Employees 182 Inactive or beneficiaries receiving benefits 7 Total 189 Total OPEB Liability – The total OPEB liability was determined based on an alternative measurement method valuation performed as of June 30, 2020 which is also the measurement date. Actuarial Assumptions- The total OPEB liability in the June 30, 2020 valuation, was determined using the following actuarial assumptions:  Actuarial Cost Method - Entry Age  Discount Rate – 2.21% 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: 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 Year $ 2,769,891 Changes for the Year: Service cost 182,138 Interest expense 96,946 Change in assumptions (237,748) Difference between expected and actual experience (237,298) Benefits paid (91,824) Net Changes (287,786) Balances End of Year $ 2,482,105 67  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2021 OPEB Liabilities, OPEB Expense, and Deferred Outflows or Resources and Deferred Inflows of Resources Related to OPEB - For the year ended June 30, 2021, the City recognized OPEB expense of $511,800. At June 30, 2021, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: Deferred Outflows Deferred Inflows of Resources of Resources Differences between expected and actual experience $ - $ 506,958 Changes of assumptions - 693,508 Changes in proportion 365,038 363,481 City Contributions during measurement date 10,224 10,271 Benefits paid subsequent to the measurement date 90,502 - Total $ 465,764 $ 1,574,218 In the year ending June 30, 2022, $90,502 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 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: 2022 $ (218,822) 2023 $ (218,822) 2024 $ (218,822) 2025 $ (205,220) 2026 $ (164,200) Thereafter (173,070) $ (1,198,956) 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 (1.21 percent) or 1- percentage- point higher (3.21 percent) than the current discount rate: Current Discount Rate 1% Decrease ( 1.21%) (2.21%) 1% Increase (3.21%) Employers' total OPEB liability $ 2,775,131 $ 2,482,105 $ 2,222,478 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 (4.99 percent decreasing to 3.87 percent) or 1- percentage point higher (6.99 percent decreasing to 5.87 percent) than the current healthcare cost trend rates: Current Discount Rate 1% Decrease (4.99% (5.99% decreasing to 1% Increase (6.99% decreasing to 3.87%) 4.87%) decreasing to 5.87%) Employers' total OPEB liability $ 2,170,169 $ 2,482,105 $ 2,854,647 68  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2021 15. Commitments and Contingencies 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 2020, the City’s involvement in federal and state award programs was relatively immaterial. 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 its 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. New leadership as of 7/1/2020, City manager and mayor, has not changed our direction on this important matter to date. 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, 2021, 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 a subsequent fiscal year. 69  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2021 GRDA Winter Storm In February 2021, the State of Oklahoma experienced a major winter storm, Uri, that caused electric wholesale prices to increase significantly. The City received information from GRDA, their wholesale electric provider, in August 2021, that Miami’s portion of the electrical cost for the winter storm would be $2,698,459. The City has opted to pay the amount within 12 months, or by October . The city has opted to allow their sixteen (16) industrial customer to repay their actual usage during this time totaling $1,025,878.70 and has approved a Temporary Rate Adjustment ("TRA") shown as PCAx, to be added to the monthly bills of Rate Class Customers E.1, E.2, E.3 and E.5 to recover 100% of the Grand River Dam Authority’s Temporary Production Cost Bill over an approximately 36 month term. 70  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2021 REQUIRED SUPPLEMENTARY INFORMATION 71  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2021 Budgetary Comparison Schedules (Budgetary Basis) – Year Ended June 30, 2021 GENERAL FUND Actual Variance with Budgeted Amounts Amounts Final Budget Original Final (Budget basis) Positive (Negative) Beginning Budgetary Fund Balance: $ 1,010,998 $ 1,010,998 $ 1,558,310 $ 547,312 Resources (Inflows): Taxes and assessments 6,845,400 6,845,400 8,141,366 1,295,966 Fees, licenses and permits 34,500 34,500 87,521 53,021 Charges for services 156,186 155,695 148,169 (7,526) Fines and forfeitures 234,300 234,300 202,356 (31,944) Interest earned 13,500 13,500 10,918 (2,582) M iscellaneous 2,700 1,069,721 262,672 (807,049) Intergovernmental 63,000 63,000 789,885 726,885 Total Resources (Inflows) 7,349,586 8,416,116 9,642,887 1,226,771 Amounts available for appropriation 8,360,584 9,427,114 11,201,197 1,774,083 Charges to Appropriations (Outflows): General Government M uncipal Court 139,381 150,261 145,658 4,603 General Government 735,948 713,888 502,647 211,241 Human Resources 299,342 299,362 249,809 49,553 Legal 124,454 114,454 78,978 35,476 Public Safety Police 2,326,181 2,315,027 2,236,388 78,639 Fire 2,217,692 2,234,162 2,232,728 1,434 Emergency M anagement 38,420 48,052 41,600 6,452 Police Communications 433,201 444,301 406,378 37,923 Code Compliance 119,191 120,891 115,041 5,850 Risk M anagement 617,252 688,070 615,811 72,259 Public Works and Streets Streets 802,909 828,105 762,998 65,107 Cemetery 328,419 331,169 315,694 15,475 Facilities 273,674 284,011 254,867 29,144 Animal Control 215,226 223,726 182,120 41,606 Culture and Recreation Parks 650,315 652,523 562,572 89,951 Swimming Pool 198,970 198,970 103,518 95,452 Library 537,658 567,096 537,755 29,341 Total Charges to Appropriations 10,058,233 10,214,068 9,344,562 869,506 Other financing sources (uses) Transfers from other funds 8,353,552 8,403,284 9,459,287 1,056,003 Transfers to other funds (6,564,650) (6,590,995) (7,785,953) (1,194,958) Total other financing sources (uses) 1,788,902 1,812,289 1,673,334 (138,955) Ending Budgetary Fund Balance $ 91,253 $ 1,025,335 $ 3,529,969 $ 2,504,634 See accompanying notes to this schedule. 72  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2021 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, 2020 Fund Balance June 30, 2021 Budget to GAAP Reconciliation: Fund Balance - GAAP Basis $1,838,872 $2,142,393 $3,981,265 Increases (Decreases): Revenues: Receivable from other governments and entities (848,429) (61,287) (909,716) Accounts receivable (129,157) (101,308) (230,465) State on behalf pension payments (569,506) 168,322 (401,184) Combining accounts (210,564) (92,264) (302,828) Expenditures: Accrued payroll 333,782 (16,363) 317,419 Other expenditures 573,806 100,488 674,294 State on behalf pension payments 569,506 (168,322) 401,184 Fund Balance - Budgetary Basis $1,558,310 $1,971,659 $3,529,969 73  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2021 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 2020 2021 City's proportion of the net pension liability 0.413176% 0.418954% 0.4143524% 0.4169184% 0.421250% 0.394823% 0.375765% City's proportionate share of the net pension liability $ 4,887,039 $ 4,446,809 $ 5,062,191 $ 5,243,677 $ 4,741,794 $ 4,171,963 $ 4,629,102 City's covered-employee payroll $ 1,089,326 $ 1,144,680 $ 1,159,023 $ 1,185,003 $ 1,208,603 $ 1,220,957 $ 1,206,179 City's proprotionate share of the net pension liability as a percentage of its covered-employee payroll 449% 388% 437% 443% 392% 342% 384% Plan fiduciary net position as a percentage of the total pension liability 68.12% 68.27% 64.87% 66.61% 70.73% 72.85% 69.98% *The amounts present for each fiscal year were determined as of 6/30 Notes to Schedule: Only the previous seven 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 2020 2021 Statutorially required contribution $ 160,255 $ 162,264 $ 165,905 $ 169,204 $ 170,934 $ 168,865 $ 173,054 Contributions in relation to the statutorially required contribution 160,255 162,264 165,905 169,204 170,934 168,865 173,054 Contribution deficiency (excess) $ - $ - $ - $ - $ - $ - $ - City's covered-employee payroll $ 1,144,680 $ 1,159,023 $ 1,185,033 $ 1,208,603 $ 1,220,957 $ 1,206,179 $ 1,236,103 Contributions as a percentage of covered-employee payroll 14.00% 14.00% 14.00% 14.00% 14.00% 14.00% 14.00% Notes to Schedule: Only the previous seven fiscal years are presented because 10-year data is not yet available. 74  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2021 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 2020 2021 City's proportion of the net pension liability (asset) 0.4416% 0.3977% 0.4577% 0.3683% 0.4088% 0.3946% 0.3839% City's proportionate share of the net pension liability (asset) $ (148,685) $ 16,217 $ 700,954 $ 29,715 $ (194,728) $ (25,191) $ 440,848 City's covered-employee payroll $ 1,184,882 $ 1,131,472 $ 1,201,369 $ 1,169,953 $ 1,246,941 $ 1,283,171 $ 1,285,623 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% 15.62% 1.96% -34.29% Plan fiduciary net position as a percentage of the total pension liability 101.53% 99.82% 93.50% 99.68% 101.89% 100.24% 95.8% *The amounts present for each fiscal year were determined as of 6/30 Notes to Schedule: Only the previous seven 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 2020 2021 Statutorially required contribution $ 145,903 $ 156,178 $ 152,094 $ 162,102 $ 166,813 $ 167,131 $ 171,661 Contributions in relation to the statutorially required contribution 145,903 156,178 152,094 162,102 166,813 167,131 171,661 Contribution deficiency (excess) $ - $ - $ - $ - $ - $ - $ - City's covered-employee payroll $ 1,131,472 $ 1,201,369 $ 1,169,953 $ 1,246,941 $ 1,283,171 $ 1,285,623 $ 1,320,463 Contributions as a percentage of covered-employee payroll 12.89% 13.00% 13.00% 13.00% 13.00% 13.00% 13.00% Notes to Schedule: Only the previous seven 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, 2021 Required Supplementary Information Oklahoma Municipal Retirement Fund Schedule of Changes in Net Pension Liability and Related Ratios 2015 2016 2017 2018 2019 2020 2021 Total pension liability Service cost $ 276,403 $ 308,701 $ 344,545 $ 330,866 $ 283,926 $ 346,075 $ 345,024 Interest 1,034,763 1,037,326 1,073,154 1,087,717 1,061,577 1,044,256 1,070,892 Changes of benefit terms - - - - Differences between expected and actual experience - 102,207 (202,315) (535,480) (541,596) (272,005) (198,240) Changes of assumptions - - - 321,010 - 208,546 - Benefit payments, including refunds of member contributions (997,138) (1,006,438) (964,663) (1,092,673) (1,076,009) (992,188) (1,021,818) Benefit changes due to plan amendments 35,013 Net change in total pension liability 314,028 441,796 250,721 111,440 (272,102) 369,697 195,858 Total pension liability - beginning 13,564,650 13,878,678 14,320,474 14,571,195 14,682,635 14,410,533 14,780,230 Total pension liability - ending (a) $ 13,878,678 $ 14,320,474 $ 14,571,195 $ 14,682,635 $ 14,410,533 $ 14,780,230 $ 14,976,088 Plan fiduciary net position Contributions - employer $ 569,542 $ 618,748 $ 640,172 $ 650,799 $ 635,453 $ 646,533 $ 657,276 Contributions - member 166,578 175,420 181,046 183,989 179,680 182,834 185,855 Net investment income 1,363,071 261,920 83,267 1,149,965 755,918 735,845 465,013 Benefit payments, including refunds of member contributions (997,138) (1,006,438) (964,663) (1,092,673) (1,076,009) (992,188) (1,021,818) Administrative expense (20,151) (19,533) (18,698) (20,154) (21,162) (22,670) (23,361) Other - - - - Net change in plan fiduciary net position 1,081,902 30,117 (78,876) 871,926 473,880 550,354 262,965 Plan fiduciary net position - beginning 8,437,357 9,519,259 9,549,376 9,470,500 10,342,425 10,816,305 11,366,659 Plan fiduciary net position - ending (b) $ 9,519,259 $ 9,549,376 $ 9,470,500 $ 10,342,426 $ 10,816,305 $ 11,366,659 $ 11,629,624 Net pension liability - ending (a) - (b) $ 4,359,419 $ 4,771,098 $ 5,100,695 $ 4,340,209 $ 3,594,228 $ 3,413,571 $ 3,346,464 Plan fiduciary net position as a percentage of the total pension liability 68.59% 66.68% 64.99% 70.44% 75.06% 76.90% 77.65% Covered employee payroll $ 4,356,987 $ 4,742,831 $ 4,657,554 $ 4,735,571 $ 4,920,014 $ 4,576,812 $ 5,258,704 Net pension liability as a percentage of covered- 100.06% 100.60% 109.51% 91.65% 73.05% 74.58% 63.64% employee payroll *The amounts present for each fiscal year were determined as of 6/30 Notes to Schedule: Only the previous seven 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, 2021 Required Supplementary Information Oklahoma Municipal Retirement Fund Schedule of Employer Contributions 2015 2016 2017 2018 2019 2020 2021 Actuarially determined contribution $ 616,160 $ 643,059 $ 592,589 $ 590,967 $ 512,617 $ 518,316 $ 551,638 Contributions in relation to the actuarially 616,160 643,059 623,633 635,553 647,362 655,182 697,304 determined contribution Contribution deficiency (excess) $ - $ - $ (31,044) $ (44,586) $ (134,745) $ (136,866) $ (145,666) Covered employee payroll $ 4,661,027 $ 4,849,681 $ 4,703,091 $ 4,792,921 $ 4,882,062 $ 4,941,046 $ 5,258,704 Contributions as a percentage of covered-employee payroll 13.22% 13.26% 13.26% 13.26% 13.26% 13.26% 13.26% Notes to Schedule: 1. Only the previous seven fiscal years are presented because 10-year data is not yet available. 2. Latest Valuation Date: July 1, 2020 3. Actuarially determined contribution rate is calculated as of July 1, 2020 July 2020 through June 2021 contributions were at a rate of 9.45%. 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% 77  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2021 Required Supplementary Information – OPEB Schedule of Changes in Total OPEB Liability and Related Ratios Postemployment Health Insurance Implcit Rate Subsidy Plan 2018 2019 2020 2021 Total OPEB Liability Service cost $ 233,167 $ 206,592 $ 180,562 $ 182,138 Interest 91,262 125,031 120,692 96,946 Changes in assumptions (280,566) (378,465) (162,177) (237,748) Differences between expected and actual experience (17,115) (388,393) (237,298) Benefit payments (78,120) (103,265) (99,477) (91,824) Net change in total OPEB liability (34,257) (167,222) (348,793) (287,786) Balances at Beginning of Year 3,320,163 3,285,906 3,118,684 2,769,891 Balances End of Year $ 3,285,906 $ 3,118,684 $ 2,769,891 $ 2,482,105 Covered employee payroll $ 7,400,000 $ 7,310,000 $ 7,011,000 $ 7,564,000 Total OPEB liability as a percentage of covered- employee payroll 44.40% 42.66% 39.51% 32.81% Notes to Schedule: Only Four fiscal years are presented because 10-year data is not yet available 78  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2021 OTHER SUPPLEMENTARY INFORMATION 79  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2021 Combining Balance Sheet – General Fund Accounts - June 30, 2021 Municipal Court Travel Information MCVB &Tourism Demolition Total General General Fund Account Center Account Account Account Fund ASSETS Cash and cash equivalents $ 3,049,347 $ 20,660 $ (19,089) $ 53,631 $ 240,582 $ 3,345,131 Investments 2,008 - - - - 2,008 Receivables: Accounts receivable 230,465 - - 1,575 - 232,040 Due from other funds 87,621 - - - - 87,621 Due from other accounts 9,736 - - - - 9,736 Receivable from other governments 909,716 - - 24,795 22,584 957,095 Other receivables - - 11,279 - - 11,279 Total assets $ 4,288,893 $ 20,660 $ (7,810) $ 80,001 $ 263,166 $ 4,644,910 LIABILITIES, DEFERRED INFLOWS AND FUND BALANCES Liabilities: Accounts payable and accrued liabilities $ 125,856 $ 10,729 $ 4,381 $ 19,385 $ - $ 160,351 Wages payable 317,419 - - 8,958 - 326,377 Due to other funds 68,361 - - - - 68,361 Due to other accounts - 9,736 - - - 9,736 Total liabilities 511,636 20,465 4,381 28,343 - 564,825 DEFERRED INFLOWS OF RESOURCES Deferred revenue 98,820 - - - - 98,820 Fund balances: Restricted 23,213 - - - - 23,213 Assigned 2,261,325 - - - 263,166 2,524,491 Unassigned (deficit) 1,393,899 195 (12,191) 51,658 - 1,433,561 Total fund balances 3,678,437 195 (12,191) 51,658 263,166 3,981,265 Total liabilities, deferred inflows and fund balances $ 4,288,893 $ 20,660 $ (7,810) $ 80,001 $ 263,166 $ 4,644,910 80  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2021 Combining Schedule of Revenues, Expenditures, and Changes in Fund Balance – General Fund Accounts – Year Ended June 30, 2021 Travel MCVB & Municipal Information Tourism Demolition Total General General Fund Court Account Center Account Account Account Fund REVENUES Taxes $ 6,625,249 $ - $ - $ 191,316 $ - $ 6,816,565 Intergovernmental 1,427,469 - - - - 1,427,469 Charges for services 161,758 - - 23,789 - 185,547 Fines and forfeitures 204,251 - - - 58,847 263,098 Licenses and permits 101,275 - - - - 101,275 Investment income 10,930 - - - - 10,930 Miscellaneous 213,966 - 124,355 505 16 338,842 Total revenues 8,744,898 - 124,355 215,610 58,863 9,143,726 EXPENDITURES Current: General government 976,025 - - - 38,341 1,014,366 Public safety 5,791,950 - - - - 5,791,950 Public works and streets 1,508,733 - - - - 1,508,733 Culture and recreation 1,186,012 - - - - 1,186,012 Capital Outlay 871,457 - - - - 871,457 Debt Service: Principal 257,176 - - - - 257,176 Interest and fiscal charges 12,288 - - - - 12,288 Total expenditures 10,603,641 - 137,039 290,434 38,341 11,069,455 Excess (deficiency) of revenues over expenditures (1,858,743) - (12,684) (74,824) 20,522 (1,925,729) OTHER FINANCING SOURCES (USES) Proceeds from long-term debt 871,457 - - - - 871,457 Transfers in - interaccount - - 850 108,400 - 109,250 Transfers out - interaccount (109,250) - - - - (109,250) Transfers in 10,822,588 - - - 50,000 10,872,588 Transfers out (7,675,923) - - - - (7,675,923) Total other financing sources and uses 3,908,872 - 850 108,400 50,000 4,068,122 Net change in fund balances 2,050,129 - (11,834) 33,576 70,522 2,142,393 Fund balances - beginning 1,628,308 195 (357) 18,082 192,644 1,838,872 Fund balances - ending $ 3,678,437 $ 195 $ (12,191) $ 51,658 $ 263,166 $ 3,981,265 81  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2021 Combining Balance Sheet - Non-Major Governmental Funds - June 30, 2021 SPECIAL REVENUE FUNDS PARKS AND FISHING STREET AND DRUG FORFEITURE RECREATION GRANT AND MDA-HOUSING POLICE LICENSE FUND ALLEY FUND PROGRAM DONATION FUND CONSTRUCTION FUND GRANTS ASSETS Cash and cash equivalents $ 76,792 $ 368,036 $ 6,747 $ 322,879 $ 1,333,124 $ 91,716 $ 113,602 Investments - - - - 34,437 - - Accounts receivable - - - - - - - Due from other governments - 10,819 5,867 - 50,080 - 28,175 Due from other funds - 38,404 - - - - - Inventory - - - - - - - Prepaid expenses - - - - - - - Total assets $ 76,792 $ 417,259 $ 12,614 $ 322,879 $ 1,417,641 $ 91,716 $ 141,777 LIABILITIES, DEFERRED INFLOWS AND FUND BALANCES Liabilities: Accounts payable and accrued liabilities $ - $ 92,794 $ - $ 16,139 $ 281,197 $ - $ 29,462 Wages payable - - - 9,493 - - - Due to other funds - - - - - - - Total liabilities - 92,794 - 25,632 281,197 - 29,462 Deferred Inflows: Deferred revenue - - - - - - - Fund balances: Restricted 76,792 - 12,614 297,247 1,136,444 91,716 112,315 Commited - 324,465 - - - - - Assigned - - - - - - - Unassigned - - - - - - - Total fund balances 76,792 324,465 12,614 297,247 1,136,444 91,716 112,315 Total liabilities, deferred inflows and fund balances $ 76,792 $ 417,259 $ 12,614 $ 322,879 $ 1,417,641 $ 91,716 $ 141,777 (continued) 82  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2021 Combining Balance Sheet - Non-Major Governmental Funds - June 30, 2021, Continued DEBT SERVICE FUND CAPITAL PROJECT FUNDS STREET AND PARK G.O. BOND CEMETERY MAIN STREET STADIUM PROJECT POOL DEPARTMENT SINKING FUND CARE PROJECT FUND IMPROVEMENT FUND PROJECTS TOTALS ASSETS Cash and cash equivalents $ 175,713 $ 84,729 $ - $ 987,516 $ 8,323 $ 42,041 $ 3,611,218 Investments - - - - - - 34,437 Accounts receivable - - - - - - - Due from other governments 55,409 - - 179,854 - - 330,204 Due from other funds - - - - - - 38,404 Inventory - - - - - - - Prepaid expenses - - - - - - Total assets $ 231,122 $ 84,729 $ - $ 1,167,370 $ 8,323 $ 42,041 $ 4,014,263 LIABILITIES, DEFERRED INFLOWS AND FUND BALANCES Liabilities: Accounts payable and accrued liabilities $ - $ - $ - $ 241,591 $ - $ - $ 661,183 Wages payable - - - - - - 9,493 Due to other funds - - - - - - - Total liabilities - - - 241,591 - - 670,676 Deferred Inflows: Deferred revenue 55,410 - - - - - 55,410 Fund balances: Restricted 175,712 84,729 - 925,779 8,323 42,041 2,963,712 Commited - - - - - - 324,465 Assigned - - - - - - - Unassigned - - - - - - - Total fund balances 175,712 84,729 - 925,779 8,323 42,041 3,288,177 Total liabilities, deferred inflows and fund balances $ 231,122 $ 84,729 $ - $ 1,167,370 $ 8,323 $ 42,041 $ 4,014,263 83  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2021 Combining Statement of Revenues, Expenditures, and Changes in Fund Balance – Nonmajor Governmental Funds – Year Ended June 30, 2021 SPECIAL REVENUE FUNDS PARKS AND GRANT AND MDA-HOUSING FISHING STREET AND DRUG FORFEITURE RECREATION DONATION CONSTRUCTION POLICE LICENSE FUND ALLEY FUND PROGRAM FUND FUND GRANTS REVENUES Taxes $ - $ - $ - $ - $ - $ - $ - Intergovernmental 5,000 118,664 826 - 611,330 - 28,174 Charges for services - - - 200,103 - - - Investment income - - - - - - - Miscellaneous - 31,984 9 266 231,943 - 144,797 Total revenues 5,000 150,648 835 200,369 843,273 - 172,971 EXPENDITURES Current: General government - - - - 3,415 - - Public safety - - 1,894 - 113,247 - 46,321 Public works - 794,057 - - 1,275,100 - - Culture and recreation - - - 171,517 39,855 - - Capital Outlay - - - - 9,950 - - Debt Service Principal retirement - 10,539 - - - - - Interest and fiscal charges - 319 - - - - - Total Expenditures - 804,915 1,894 171,517 1,441,567 - 46,321 Revenues over (under) expenditures 5,000 (654,267) (1,059) 28,852 (598,294) - 126,650 OTHER FINANCING SOURCES (USES) Transfers in - 456,000 - 10 1,095,186 - - Transfers out - (476,552) - - (9,543) - (42,358) Total other financing sources (uses) - (20,552) - 10 1,085,643 - (42,358) Net change in fund balances 5,000 (674,819) (1,059) 28,862 487,349 - 84,292 Fund balances - beginning 71,792 999,284 13,673 268,385 649,095 91,716 28,023 Fund balances - ending $ 76,792 $ 324,465 $ 12,614 $ 297,247 $ 1,136,444 $ 91,716 $ 112,315 (continued) 84  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2021 Combining Statement of Revenues, Expenditures, and Changes in Fund Balance – Nonmajor Governmental Funds – Year Ended June 30, 2021, Continued DEBT SERVICE FUND CAPITAL PROJECT FUNDS STREET AND POOL PARK G.O. BOND CEMETERY MAIN STREET STADIUM PROJECT IMPROVEMENT DEPARTMENT SINKING FUND CARE PROJECT FUND FUND PROJECTS TOTALS REVENUES Taxes $ 16,889 $ - $ - $ 1,373,550 $ - $ - $ 1,390,439 Intergovernmental - - - - - - 763,994 Charges for services - 11,313 - - - - 211,416 Investment earnings - - - 23 - - 23 Miscellaneous - 7 - 318 - - 409,324 Total revenues 16,889 11,320 - 1,373,891 - - 2,775,196 EXPENDITURES Current: General government - - - - - - 3,415 Public safety - - - - - - 161,462 Public works - - - 245,102 - - 2,314,259 Culture and recreation - - - - 182,300 - 393,672 Capital Outlay - 19,679 67,776 - - - 97,405 Debt Service Principal retirement - - - 455,000 - - 465,539 Interest and fiscal charges - - - 539,637 - - 539,956 Total Expenditures - 19,679 67,776 1,239,739 182,300 - 3,975,708 Excess (deficiency) of revenues over expenditures 16,889 (8,359) (67,776) 134,152 (182,300) - (1,200,512) OTHER FINANCING SOURCES (USES) Transfers in - - - 1,370,143 - - 2,921,339 Transfers out - - - (1,363,301) - - (1,891,754) Total other financing sources and uses - - - 6,842 - - 1,029,585 Net change in fund balances 16,889 (8,359) (67,776) 140,994 (182,300) - (170,927) Fund balances - beginning 158,823 93,088 67,776 784,785 190,623 42,041 3,459,104 Fund balances - ending $ 175,712 $ 84,729 $ - $ 925,779 $ 8,323 $ 42,041 $ 3,288,177 85  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2021 Combining Schedule of Net Position – Special Utility Authority Accounts – June 30, 2021 Miami Special Utility Authority Accounts Utility Improvement Stormwater Rainy Day Public Utilities Account Account Account Total ASSETS Current assets: Cash and cash equivalents $ 4,747,443 $ (4,489,193) $ 453,596 $ 3,168,729 $ 3,880,575 Cash and cash equivalents, restricted 632,076 7,088,478 - - 7,720,554 Investments - - - 1,462,069 1,462,069 Accounts receivable, net 3,890,987 - - - 3,890,987 Other receivable 436 - - - 436 Inventory 1,296,120 - - - 1,296,120 Due from other accounts 250,796 - - - 250,796 Due from other government 85,425 - - - 85,425 Due from other funds 32,111 - - - 32,111 Total current assets 10,935,394 2,599,285 453,596 4,630,798 18,619,073 Non-current assets: Cash and cash equivalents, restricted 1,195 - - - 1,195 Investments, restricted 198,084 - - - 198,084 Capital assets: Land, construction in progress, and water rights 3,216,807 - - - 3,216,807 Other capital assets, net of accumulated depreciation 21,516,126 - - - 21,516,126 Total non-current assets 24,932,212 - - - 24,932,212 Total assets 35,867,606 2,599,285 453,596 4,630,798 43,551,285 DEFERRED OUTFLOW OF RESOURCES Deferred amounts related to pension 678,543 - - - 678,543 Deferred amounts related to OPEB 219,282 - - - 219,282 Deferred amounts related to GRDA settlement 99,788 - - - 99,788 Total deferred outflow of resources 997,613 - - - 997,613 LIABILITIES Current liabilities: Accounts payable and accrued liabilities 2,133,152 82,920 - - 2,216,072 Wages payable 169,972 - - - 169,972 Due to other accounts - - 250,796 - 250,796 Due to other funds 86,308 - - - 86,308 Accrued interest payable 17,638 99,718 - - 117,356 Accrued compensated absences 17,691 - - - 17,691 Refundable deposits 37,147 - - - 37,147 Capital lease payable 289,135 - - - 289,135 Revenue bond payable - 660,000 - - 660,000 Notes payable 724,476 - - - 724,476 Total current liabilities 3,475,519 842,638 250,796 - 4,568,953 Non-current liabilities: Accrued compensated absences 160,274 - 4,446 - 164,720 Net pension liability 1,795,494 - - - 1,795,494 Total OPEB liability 987,357 - - - 987,357 Refundable deposits 333,165 - - - 333,165 Capital lease payable 144,620 - - - 144,620 Revenue bond payable - 6,704,385 - - 6,704,385 Notes payable, net 2,930,157 - - - 2,930,157 Total non-current liabilities 6,351,067 6,704,385 4,446 - 13,059,898 Total liabilities 9,826,586 7,547,023 255,242 - 17,628,851 DEFERRED INFLOW OF RESOURCES Deferred amounts related to pensions 378,978 - - - 378,978 Deferred amounts related to OPEB 667,959 - - - 667,959 Total deferred inflow of resources 1,046,937 - - - 1,046,937 NET POSITION Net investment in capital assets 20,644,879 (7,364,385) - - 13,280,494 Restricted for debt service 198,435 123,039 - - 321,474 Unrestricted 5,148,382 2,293,608 198,354 4,630,798 12,271,142 Total net position $ 25,991,696 $ (4,947,738) $ 198,354 $ 4,630,798 $ 25,873,110 86  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2021 Combining Schedule of Revenues, Expenses and Changes in Net Position – Special Utility Authority Accounts - Year Ended June 30, 2021 Miami Special Utility Authority Accounts Utility Improvement Stormwater Rainy Day Public Utilities Account Account Account Total REVENUES Charges for services $ 27,063,398 $ - $ - $ - $ 27,063,398 Fees, licenses and permits - - 133,611 - 133,611 Miscellaneous 1,065,559 - - - 1,065,559 Total operating revenues 28,128,957 - 133,611 - 28,262,568 OPERATING EXPENSES Personal services 3,776,163 - 73,628 - 3,849,791 Materials and supplies 11,179,275 - 35,327 - 11,214,602 Other services and charges 3,535,228 (556,251) 17,745 - 2,996,722 Depreciation expense 1,858,978 - - - 1,858,978 Total operating expenses 20,349,644 (556,251) 126,700 - 19,920,093 Operating income (loss) 7,779,313 556,251 6,911 - 8,342,475 NON-OPERATING REVENUES (EXPENSES) Investment income 46 1,168 - 10,611 11,825 Miscellaneous 62,988 - - 4,598 67,586 Capital grants 100,000 - - - 100,000 Interest expense and fiscal charges (58,147) (253,843) - - (311,990) Total non-operating revenue (expenses) 104,887 (252,675) - 15,209 (132,579) Income (loss) before contrbutions and transfers 7,884,200 303,576 6,911 15,209 8,209,896 Contributed assets- governmental activities 969,837 - - - 969,837 Transfers in, interaccount 1,742,218 908,200 - 372,232 3,022,650 Transfers out, interaccount (1,280,432) (1,742,218) - - (3,022,650) Transfers in 8,785,986 - - 100,000 8,885,986 Transfers out (12,290,608) - - - (12,290,608) Change in net position 5,811,201 (530,442) 6,911 487,441 5,775,111 Total net position - beginning 20,180,495 (4,417,296) 191,443 4,143,357 20,097,999 Total net position - ending $ 25,991,696 $ (4,947,738) $ 198,354 $ 4,630,798 $ 25,873,110 87  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2021 Combining Schedule of Cash Flows – Special Utility Authority Accounts - Year Ended June 30, 2021 Miami Special Utility Authority Accounts Utility Improvement Stormwater Rainy Day Public Utilities Account Account Account Total CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers $ 28,058,591 $ - $ 133,611 $ 4,598 $ 28,196,800 Payments to suppliers (14,462,821) 78,885 (53,072) - (14,437,008) Payments to employees (3,983,688) - (73,036) - (4,056,724) Receipts from other funds - - 54,122 - 54,122 Payments to other funds (142,090) - - - (142,090) Receipts of customer meter deposits 163,930 - - - 163,930 Refunds of customer meter deposits (174,410) - - - (174,410) Net cash provided by operating activities 9,459,512 78,885 61,625 4,598 9,604,620 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Transfers from other funds 8,785,986 - - 100,000 8,885,986 Transfers to other funds (12,290,608) - - - (12,290,608) Interaccount transfer in - 908,200 - 372,232 1,280,432 Interaccount transfer out (1,280,432) - - - (1,280,432) Net cash provided by (used in) noncapital financing activities (4,785,054) 908,200 - 472,232 (3,404,622) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Capital assets purchased (2,933,755) (1,742,218) - - (4,675,973) Principal paid on debt (1,303,223) (635,000) - - (1,938,223) Premium on debt issued - - - - - Note proceeds 1,298,278 - - - 1,298,278 Interest and fiscal agent fees paid on debt (94,993) (259,533) - - (354,526) Net cash provided by (used in) capital and related financing activities (3,033,693) (2,636,751) - - (5,670,444) CASH FLOWS FROM INVESTING ACTIVITIES Sale (Purchase) of investments (1,438) - - (10,611) (12,049) Interest and dividends 855 1,168 - 10,611 12,634 Net cash provided by investing activities (583) 1,168 - - 585 Net increase (decrease) in cash and cash equivalents 1,640,182 (1,648,498) 61,625 476,830 530,139 Balances - beginning of year 3,740,532 4,247,783 391,971 2,691,899 11,072,185 Balances - end of year $ 5,380,714 $ 2,599,285 $ 453,596 $ 3,168,729 $ 11,602,324 Reconciliation to Statement of Net Position: Cash and cash equivalents $ 4,747,443 $ (4,489,193) $ 453,596 $ 3,168,729 $ 3,880,575 Restricted cash and cash equivalents - current 632,076 7,088,478 - - 7,720,554 Restricted cash and cash equivalents - noncurrent 1,195 - - - 1,195 Total cash and cash equivalents, end of year $ 5,380,714 $ 2,599,285 $ 453,596 $ 3,168,729 $ 11,602,324 Reconciliation of operating income (loss) to net cash provided by (used in) operating activities: Operating income $ 7,779,313 $ 556,251 $ 6,911 $ - $ 8,342,475 Adjustments to reconcile operating income to net cash provided by operating activities: Depreciation expense 1,858,978 - - - 1,858,978 Other nonoperating revenue 162,988 - - 4,598 167,586 Change in assets and liabilities: Receivables, net (233,354) - - - (233,354) Due from other funds (142,090) - - - (142,090) Inventory (18,880) - - - (18,880) Deferred outflows related to pension (137,089) - - - (137,089) Deferred outflows related to OPEB 19,181 - - - 19,181 Deferred outflows related to GRDA Settlement 11,331 11,331 Accounts payable 259,231 (477,366) - - (218,135) Due to other funds - - 54,122 - 54,122 Due to employees 2,219 - - - 2,219 Refundable deposits (10,480) - - - (10,480) Total OPEB liability (105,211) - - - (105,211) Net pension obligation 32,004 - - - 32,004 Accrued compensated absences 17,324 - 592 - 17,916 Deferred inflows related to OPEB 64,682 - - - 64,682 Deferred inflows related to pension (100,635) - - - (100,635) Net cash provided by operating activities $ 9,459,512 $ 78,885 $ 61,625 $ 4,598 $ 9,604,620 Noncash activities: Assets contributed by governmental activities $ 969,837 $ - $ - $ - $ 969,837 Asset acquired by capital lease 369,500 - - - 369,500 Asset acquired via accounts payable 422,010 - - - 422,010 $ 1,761,347 $ - $ - $ - $ 1,761,347 88  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2021 Combining Statement of Net Position – Internal Service Funds – June 30, 2021 Internal Service Funds Worker's Health Compensation Unemployment Insurance Fund Fund Fund Total ASSETS Current assets: Cash and cash equivalents $ 1,519,245 $ 202,604 $ 582,144 $ 2,303,993 Investments 131,474 - - 131,474 Other receivable 331,609 - 751,622 1,083,231 Due from other funds 208,585 - - 208,585 Total current assets 2,190,913 202,604 1,333,766 3,727,283 Total assets 2,190,913 202,604 1,333,766 3,727,283 LIABILITIES Current liabilities: Accounts payable and accrued liabilities - - - - Claims liability 332,780 2,212 483,984 818,976 Due to other funds - - 208,585 208,585 Total current liabilities 332,780 2,212 692,569 1,027,561 Total liabilities 332,780 2,212 692,569 1,027,561 NET POSITION Unrestricted 1,858,133 200,392 641,197 2,699,722 Total net position $ 1,858,133 $ 200,392 $ 641,197 $ 2,699,722 89  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2021 Combining Statement of Revenues, Expenses and Changes in Net Position – Internal Service Funds - Year Ended June 30, 2021 Internal Service Funds Worker's Compensation Unemployment Health Insurance Fund Fund Fund Total REVENUES Charges for services $ 310,488 $ 23,205 $ 1,612,402 $ 1,946,095 Miscellaneous 584,704 417 66,832 651,953 Total operating revenues 895,192 23,622 1,679,234 2,598,048 OPERATING EXPENSES Other services and charges 20,086 - 419,929 440,015 Insurance claims and expense 502,209 6,075 750,341 1,258,625 Total operating expenses 522,295 6,075 1,170,270 1,698,640 Operating income 372,897 17,547 508,964 899,408 NON-OPERATING REVENUES Investment income 772 - - 772 Total non-operating revenue 772 - - 772 Income before transfers 373,669 17,547 508,964 900,180 Transfers out (88,916) - - (88,916) Change in net position 284,753 17,547 508,964 811,264 Total net position - beginning 1,573,380 182,845 132,233 1,888,458 Total net position - ending $ 1,858,133 $ 200,392 $ 641,197 $ 2,699,722 90  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2021 Combining Statement of Cash Flows – Internal Service Funds - Year Ended June 30, 2021 WORKER'S HEALTH COMPENSATION UNEMPLOYMENT INSURANCE FUND FUND FUND TOTALS CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers $ 958,932 $ 23,622 $ 927,612 $ 1,910,166 Payments to suppliers (20,086) - (420,489) (440,575) Claims and benefits paid (672,672) (17,749) (374,054) (1,064,475) Net Cash Provided by Operating Activities 266,174 5,873 133,069 405,116 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Transfers to other funds (88,916) - - (88,916) Net Cash Provided by (Used in) Non-Capital Financing Activities (88,916) - - (88,916) CASH FLOWS FROM INVESTING ACTIVITIES Interest and dividends 772 - - 772 Sale (purchase) of investments (772) - - (772) Net Cash Provided by Investing Activities - - - - Net Increase in Cash and Cash Equivalents 177,258 5,873 133,069 316,200 Balances - beginning of the year 1,341,987 196,731 449,075 1,987,793 Balances - end of the year $ 1,519,245 $ 202,604 $ 582,144 $ 2,303,993 Reconciliation to Statement of Net Position: Cash and cash equivalents $ 1,519,245 $ 202,604 $ 582,144 $ 2,303,993 Total cash and cash equivalents $ 1,519,245 $ 202,604 $ 582,144 $ 2,303,993 Reconciliation of operating income to net cash provided by operating activities: Operating income $ 372,897 $ 17,547 $ 508,964 $ 899,408 Change in assets and liabilities: Receivables, net 63,740 - (751,622) (687,882) Accounts payable - (560) (560) Claims liability (170,463) (11,674) 376,287 194,150 Net Cash Provided by Operating Activities $ 266,174 $ 5,873 $ 133,069 $ 405,116 91  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2021 Combining Schedule of Cash Flows – Discretely Presented Component Units - Year Ended June 30, 2021 MCFA MDRA MIPFA Total CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers $ 118,715 $ 303,652 $ 30,621 $ 452,988 Payments to suppliers (46,789) (147,277) (2,997) (197,063) Payments to employees - (102,292) - (102,292) Net Cash Provided by Operating Activities 71,926 54,083 27,624 153,633 CASH FLOWS FROM INVESTING ACTIVITIES Interest and dividends - - 183 183 Net Cash Provided by Investing Activities - - 183 183 Net Increase in Cash and Cash Equivalents 71,926 54,083 27,807 153,816 Balances - beginning of the year 176,253 19,353 172,123 367,729 Balances - end of the year $ 248,179 $ 73,436 $ 199,930 $ 521,545 Reconciliation to Statement of Net Position: Cash and cash equivalents $ 248,179 $ 73,436 $ 199,930 $ 521,545 Total cash and cash equivalents $ 248,179 $ 73,436 $ 199,930 $ 521,545 $ - Reconciliation of operating income (loss) to net cash provided by (used in) operating activities: Operating income (loss) $ (176,617) $ (60,669) $ (6,102) $ (243,388) Adjustments to reconcile operating income (loss) to net cash provided by operating activities: Depreciation expense 251,697 2,525 28,713 282,935 Other nonoperating revenue 20 104,992 4,797 109,809 Change in assets and liabilities: Other receivable 600 - - 600 Accounts payables (3,774) 4,308 216 750 Accrued compensated absences - 2,927 - 2,927 Net Cash Provided by Operating Activities $ 71,926 $ 54,083 $ 27,624 $ 153,633 92  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2021 Schedule of Federal Awards and State Awards –Year Ended June 30, 2021 City of Miami, Oklahoma SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS Year Ended June 30, 2021 Federal Grantor/ Pass-through Federal AL Grantor/Program Title Number Grant I.D. Number Award Amount Expenditures Institute of Museum and Library Services Pass through Oklahoma Department of Libraries: CARES Digital Inclusion 45.310 F-21-031 $ 4,400 $ 4,400 CARES Digital Inclusion 45.310 F-21-030 15,000 15,000 CARES PPE 45.310 F-20-136 1,000 1,000 Health literacy 45.310 F-21.085 9,000 9,000 Subtotal Oklahoma Department of Libraries 45.310 29,400 29,400 Pass through Oklahoma Humanities Council: Promotion of the Humanities 45.129 Y20.333 10,000 10,000 Promotion of the Humanities 45.129 Y-21.003 1,000 1,000 Subtotal Oklahoma Humanities Council 45.129 11,000 11,000 Total Institute of Museum and Library Services 40,400 40,400 Department of Homeland Security . Assistance to Firefighters grant 97.044 EMW-2019-FG-04719 48,571 48,080 Pass through Oklahoma Emergency Management: Public Assisstance 97.042 FEMA 4453 PW 114 31,096 31,096 Public Assisstance 97.042 FEMA 4453 PW 92 10,031 10,031 Public Assisstance 97.042 FEMA 4438 PW 873 34,009 34,009 Public Assisstance 97.042 FEMA 4438 PW 5,475 5,475 Public Assisstance 97.042 DR 4453 PW 126 76,218 76,217 Public Assisstance - CARES 97.042 CARES PPE 13,888 12,965 Subtotal Oklahoma Emergency Management 97.042 170,717 169,793 Saferoom 97.039 FEMA 4256 192,000 8,000 Subtotal Oklahoma Emergency Management 362,717 177,793 Total Department of Homeland Security 411,288 225,873 Department of Justice State and Local HIDTA Task Force Grant 16.809 HIDTA Treas 303 23,233 20,241 Coronavirus Emergency Supplemental funding Program 16.034 20E0914 - 2020-VD-BX-00 16,000 16,000 Coronavirus Emergency Supplemental funding Program 16.034 20E128 2020VD-BX-0058 88,635 28,175 Subtotal Grants to States 16.034 104,635 44,175 Total Department of Justice 127,868 64,416 US Department of the Treasury Coronavirus Relief Fund 21.019 N/A 1,008,826 1,000,717 US Department of Transportation Airport Improvement Program 20.106 3-40-009-020-2020 451,730 451,730 Airport Improvement Program and COVID -19 Airports Programs 20.106 3-40-0059-022-2021 13,000 13,000 Airport Improvement Program and COVID -19 Airports Programs 20.106 3-40-0059-021-2021 30,000 30,000 Subtotal Grants to States 21.106 494,730 494,730 Pass through Oklahoma Department of Transportation: Transportation Enhancement Project Agreement 20.205 STP-158E(196)EH 458,224 458,224 Total US Department of Transportation 1,447,684 1,447,684 Environmental Protection Agency Capitalization Grants for Drinking Water State Revolving Funds 66.468 ORF-19-0029-DW 100,000 100,000 Passed through Oklahoma Employment Security Commission: Coronavirus Relief Fund 17.225 N/A 8,566 8,566 Total Federal Awards $ 3,144,632 $ 2,887,656 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. 93  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2021 City of Miami, Oklahoma SCHEDULE OF EXPENDITURES OF STATE AWARDS Year Ended June 30, 2021 State Grantor/ Pass-through Grantor/Program Title Grant I.D. Number Award Amount Expenditures STATE AWARDS: Oklahoma Department of Libraries: State aid 17 State Aid $ 11,943 $ 10,811 Comm literacy F-20-008 10,090 10,090 Total Oklahoma Department of Libraries $ 22,033 $ 20,901 Oklahoma Tobacco Settlement Endowment Trust: Healthy Incentive Program Grant for Communities FY 2021 $ 24,000 $ 24,000 Total State Awards $ 46,033 $ 44,901 94