THE CITY OF MIAMI, OKLAHOMA SINGLE AUDIT REPORTS AND SUPPLEMENTARY SCHEDULES June 30, 2023 THE CITY OF MIAMI, OKLAHOMA TABLE OF CONTENTS PAGE SINGLE AUDIT REPORTS AND SUPPLEMENTARY SCHEDULES: Reports related to financial statements of the reporting entity Required by GAO Government Auditing Standards: Independent Auditor's Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 1 Reports related to Federal Assistance Programs Required by the Uniform Guidance: Independent Auditor's Report on Compliance for Each Major Federal Program and on Internal Control over Compliance Required By the Uniform Guidance; and Report on the Schedule of Expenditures of Federal Awards Required by the Uniform Guidance 3 Schedule of Expenditures of Federal Awards 6 Notes to the Schedule of Expenditures of Federal Awards 7 Schedule of Findings and Questioned Costs 8 Summary Schedule of Prior Audit Findings and Questioned Costs 12  INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS To the Honorable Mayor and Members of the City Council of the City of Miami, Oklahoma We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of City of Miami, Oklahoma (the “City”), as of and for the year ended June 30, 2023, and the related notes to the financial statements, which collectively comprise City’s basic financial statements and have issued our report thereon dated March 13, 2024. Our report includes a reference to other auditors who have audited the financial statements of the Miami Industrial Authority (“MIDA”), as described in our report on the City’s financial statements. This report does not include the result of other auditor’s testing of internal control over the financial reporting or compliance and other matters that are reported on separately by those auditors. Report on Internal Control over Financial Reporting In planning and performing our audit of the financial statements, we considered the City’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of City’s internal control. Accordingly, we do not express an opinion on the effectiveness of The City’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. We identified a certain deficiency in internal control, described in the accompanying schedule of findings and questioned costs as finding 2023-001 that we consider to be a significant deficiency. Report on Compliance and Other Matters As part of obtaining reasonable assurance about whether The City’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. www.arledge.cpa City of Miami’s Response to Findings Government Auditing Standards requires the auditor to perform limited procedures on the City’s response to the finding identified in our audit and described in the accompanying schedule of findings and questioned costs. The City’s response was not subjected to the other auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on the response. Purpose of This Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Edmond, Oklahoma March 13, 2024  INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE To Honorable Mayor and Members of the City Council City of Miami, Oklahoma Report on Compliance for Each Major Federal Program We have audited City’s compliance with the types of compliance requirements identified as subject to audit in the OMB Compliance Supplement that could have a direct and material effect on each of City’s major federal programs for the year ended June 30, 2023. The City’s major federal programs are identified in the summary of auditor’s results section of the accompanying schedule of findings and questioned costs. In our opinion, the City complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2023. Basis for Opinion on Each Major Federal Program We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Our responsibilities under those standards and the Uniform Guidance are further described in the Auditor’s Responsibilities for the Audit of Compliance section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for each major federal program. Our audit does not provide a legal determination of the City’s compliance with the compliance requirements referred to above. Responsibilities of Management for Compliance Management is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules, and provisions of contracts or grant agreements applicable to the City’s federal programs. Auditor’s Responsibilities for the Audit of Compliance Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on the City’s compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards, Government Auditing Standards, and the Uniform Guidance will always detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Noncompliance with the compliance requirements referred to above is considered material if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about the City’s compliance with the requirements of each major federal program as a whole. www.arledge.cpa In performing an audit in accordance with generally accepted auditing standards, Government Auditing Standards, and the Uniform Guidance, we: • Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material noncompliance, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding City’s compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances. • Obtain an understanding of the City’s internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control over compliance. Accordingly, no such opinion is expressed. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we identified during the audit. Other Matters The results of our auditing procedures disclosed instances of noncompliance which is required to be reported in accordance with the Uniform Guidance and which is described in the accompanying schedule of findings and questioned costs as items 2023-002 and 2023-003. Our opinion on each major federal program is not modified with respect to these matters. Government Auditing Standards requires the auditor to perform limited procedures on the City’s response to the noncompliance findings identified in our audit described in the accompanying schedule of findings and questioned costs. The City’s response was not subjected to the other auditing procedures applied in the audit of compliance and, accordingly, we express no opinion on the response. The City is responsible for preparing a corrective action plan to address each audit finding included in our auditor’s report. The City’s corrective action plan was not subjected to the auditing procedures applied in the audit of compliance and, accordingly, we express no opinion on it. Report on Internal Control over Compliance A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. Our consideration of internal control over compliance was for the limited purpose described in the Auditor’s Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance. We did identify certain deficiencies in internal control over compliance, as described in the accompanying schedule of findings and questioned costs at item 2023-002 and 2023-003, that we consider to be significant deficiencies. Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose. Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance We have audited the financial statements of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the City, as of and for the year ended June 30, 2023, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements. We issued our report thereon dated March 13, 2024 which contained unmodified opinions on those financial statements. The accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as required by the Uniform Guidance and is not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the schedule of expenditures of federal awards is fairly stated in all material respects in relation to the basic financial statements as a whole. Edmond, Oklahoma March 13, 2024  CITY OF MIAMI, OKLAHOMA Schedule of Expenditures of Federal Awards By Grant For the Year Ended June 30, 2023 Award Information AL# Pass-Through Entity Name Pass-Through Entity # Name of Grant - Grant ID Federal Expenditures ($) No. WIOA Cluster-Cluster Department of Labor WIOA Adult Program OK Dept of Commerce & Adult Online High School WIOA Adult Program 17.258 OK Dept of Libraries Grant F-23-183 $ 16,799 Total WIOA Adult Program 16,799 Total Department of Labor 16,799 Total WIOA Cluster-Cluster 16,799 Other Programs (Treated individually for major program determination) United States Department of Justice Coronavirus Emergency Supplemental Funding Program Coronavirus Emergency Supplemental Funding Program 16.034 District Attorneys Council 20E128 202VD-BX-0058 15,400 Total Coronavirus Emergency Supplemental Funding Program 15,400 Recovery Act - State and Local Law Enforcement Assistance Program: Combating Criminal Narcotics Activity Stemming from the Southern Border of the United States Competitive Grant Program Recovery Act - State and Local Law Enforcement Assistance Program: Combating Criminal Narcotics State and Local HIDTA Activity Stemming from the Southern Border of the Task Force Grant--HIDTA United States Competitive Grant Program 16.809 Treas 303 18,223 Total Recovery Act - State and Local Law Enforcement Assistance Program: Combating Criminal Narcotics Activity Stemming from the Southern Border of the United States Competitive Grant Program 18,223 Total United States Department of Justice 33,623 Department of the Treasury CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS CORONAVIRUS STATE AND LOCAL FISCAL American Rescue Plan SA- RECOVERY FUNDS 21.027 0131 1,510,627 CORONAVIRUS STATE AND LOCAL FISCAL American Rescue Plan 03- RECOVERY FUNDS 21.027 Ottawa County 03 18,000 Total CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS 1,528,627 Total Department of the Treasury 1,528,627 National Endowment for the Humanities Grants to States Grants to States 45.310 Health Literacy F-23-079 9,000 Total Grants to States 9,000 Total National Endowment for the Humanities 9,000 National Archives and Records Administration National Historical Publications and Records Grants Oklahoma Department of Preservation Assessment National Historical Publications and Records Grants 89.003 Libraries Grant F-23-171 250 Total National Historical Publications and Records Grants 250 Total National Archives and Records Administration 250 Department of Homeland Security Hazard Mitigation Grant Oklahoma Emergency Hazard Mitigation Grant 97.039 Management FEMA 4438 199,428 Total Hazard Mitigation Grant 199,428 Total Department of Homeland Security 199,428 Total Other Programs (Treated individually for major program determination) 1,770,928 Total Expenditures of Federal Awards $ 1,787,727 The accompanying notes are an integral part of this schedule 6 CITY OF MIAMI, OKLAHOMA NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS For the Year Ended June 30, 2023 NOTE A--BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of the City of Miami, Oklahoma (the “City”) under programs of the federal government for the year ended June 30, 2023. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the City, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the City. NOTE B--SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. NOTE C—INDIRECT COST RATE The City has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. NOTE D—SUBRECIPIENTS During the year ended June 30, 2023, the City did not provide federal awards to subrecipients. NOTE E— SUBSEQUENT EVENTS Management has evaluated subsequent events through the date on which the report on schedule of expenditures of federal awards required by the uniform guidance were available to be issued. No items of significance were determined. 7 CITY OF MIAMI, OKLAHOMA SCHEDULE OF FINDINGS AND QUESTIONED COSTS For the Year Ended June 30, 2023 Section I--Summary of Auditor’s Results Financial statements Type of auditor’s report issued on whether the financial statements were in accordance with GAAP: Unmodified Internal control over financial reporting: • Material weakness(es) identified? yes X no • Significant deficiency(ies) identified? X yes none reported Noncompliance material to financial statements noted? yes X no Federal Awards Internal control over major federal programs: • Material weakness(es) identified? yes X no • Significant deficiency(ies) identified? X yes none reported Type of auditor’s report issued on compliance for major federal programs: Unmodified Any audit findings disclosed that are required to be reported in accordance with 2 CFR 200.516(a)? X yes no Identification of major federal programs: Program Assistance Listing Number Coronavirus State and Local Fiscal Recovery Funds 21.027 Dollar threshold used to distinguish between type A and type B programs: $750,000 Auditee qualified as low-risk auditee? yes X no 8 CITY OF MIAMI, OKLAHOMA SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Cont’d) For the Year Ended June 30, 2023 SECTION II – FINANCIAL STATEMENT FINDINGS Internal Control Findings Finding 2023-001 – Cash Monitoring Criteria: Internal controls over cash reconciliation should timely prevent, or detect and correct errors relating to timing differences of general ledger activity versus bank activity. Cash should be timely reconciled and long outstanding reconciling items should be investigated to determine the validity of the reconciling item. Condition: The City’s internal controls over cash monitoring were lacking, as the City was not investigating reconciling items upon completion of the bank reconciliations. Cause and Effect: Although the City in most cases did reconcile its various cash accounts within trivial differences and reviews occurred, there were instances identified where follow up efforts in determining the cause of long outstanding reconciling items that had not yet cleared the bank. As a result, the following errors were identified during audit fieldwork: • A duplicate journal entry of a $78,000 cash transfer between accounts remained as a reconciling item from May of 2023 through November of 2023 and was not timely investigated. • A reconciling error identified in a previous audit was corrected in the general ledger, however, the item remained on the bank reconciliation as outstanding throughout the current fiscal year. A roughly $128,000 variance existed between the recorded cash in the general ledger versus the adjusted balance of the bank reconciliation. Recommendation: We recommend the city reviews its outstanding reconciling items timely and investigate differences that remain outstanding month to month. Management Response: Our finance department has experienced high turnover throughout the past couple fiscal years, although we are now fully staffed. We are making sure all bank reconciliations are completed monthly to catch and correct errors. Now being fully staffed, we are committed to reconciling and clearing all outstanding items on the bank reconciliations. Although identifying the cause of all items will take time as many items were made prior to the personnel now within the department. Compliance Findings There are no findings requiring reporting under this section. 9 CITY OF MIAMI, OKLAHOMA SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Cont’d) For the Year Ended June 30, 2023 SECTION III – FEDERAL AWARDS FINDINGS AND QUESTIONED COSTS Internal Control Findings Finding 2023-002 – Reporting Requirements Criteria: Per the Compliance and Reporting Guidance for Coronavirus State and Local Fiscal Recovery Funds (CSLFRF), all recipients are required to submit Project and Expenditure Reports. Annual reports are required for cities below 250,000 residents that are allocated less than $10 million in CSLFRF funding and must be submitted to the Department of Treasury by April 30. In addition, according to the City’s internal control polices, the City has established channels of communication and systems for tracking the sources of grant funding, both state and federal. Additionally, the City received a reimbursement based grant award in 2023 which management did not thoroughly determine the funding source for appropriate inclusion or exclusion from the schedule of expenditures of federal awards (SEFA). Upon the conclusion of audit test work, it was determined the grant awarded came from state sources, and thus would not be included in the SEFA. Condition: The City’s internal controls over required reporting requirements were not timely monitored and tracked. Questioned Costs: $0 Cause and Effect: Due to the City not having a centralized reporting requirement schedule, the required annual report for CSLFRF funding was not submitted by April 30, 2023, and therefore was not in compliance with the compliance reporting requirements. As of the end of audit fieldwork, this report was still pending submission to the Department of Treasury. As a result of the City’s lack of oversight for the funding source of a grant, potential non-compliance could exist as requirements for federal versus state awards may differ. This also could be overlooked for appropriate inclusion in the SEFA, resulting in improper reporting. Recommendation: We recommend the City centrally tracks its required grant reporting and related deadlines with specific individuals identified by grant for each individual’s responsibility in meeting the reporting deadlines. Management Response: With the turnover in staff and management in the department, the new Finance Director submitted for login credentials to [email protected] in order to complete required reporting. The email for login credentials was sent on April 28, 2023. Once login credentials were received, the final report was submitted on November 6, 2023. To date, no penalties have been reported by the Treasury. Additionally, we are working to centrally track grants and loans moving forward and communicating this with department heads and the interim city manager. 10 CITY OF MIAMI, OKLAHOMA SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Cont’d) For the Year Ended June 30, 2023 SECTION III – FEDERAL AWARDS FINDINGS AND QUESTIONED COSTS [Continued] Finding 2023-003 – Inadequate Records Retention (Procurement) Criteria: Per Federal regulations for general procurement standards (2 CFR § 200.318 (i)), non-Federal entity must maintain records sufficient to detail the history of the procurement process. These records will include but are not limited to, the following: Rationale for the method of procurement, selection or rejection, and the basis for the contract price. Condition: In our procurement testing for CSLFRF funding, the City was unable to provide evidence that demonstrates public notice was published according to (2 CFR § 200.320(b)) for 1 of the 5 projects selected. Questioned Costs: $0 Cause and Effect: Due to the City not having a centralized repository for procurement records, sufficient evidence was unable to verify that procurements provide full and open competition to potential bidders, as there was a lack of documentation related to the public notice for open bidding to occur. Recommendation: We recommend the City updates their procurement policies and procedures by centrally tracking procurement documents for up to five years. Centrally tracking documentation will help the City mitigate potential contractual and administrative issues related to procurement. Management Response: The Finance Director is initiating conversations with department heads regarding updating procurement policies and procedures. We are taking steps to ensure all procurement documents are stored centrally in order for these items to be readily available moving forward. Compliance Findings See finding 2023-002 above. See finding 2023-003 above. 11 CITY OF MIAMI, OKLAHOMA SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS AND QUESTIONED COSTS For the Year Ended June 30, 2023 SECTION II – FINANCIAL STATEMENT FINDINGS Compliance Findings None noted in prior year audit. Internal Control Findings None noted in prior year audit. SECTION III – FEDERAL AWARDS FINDINGS AND QUESTIONED COSTS Compliance Findings None noted in prior year audit. Internal Control Findings None noted in prior year audit. 12 City of ANNUAL FINANCIAL STATEMENTS AND INDEPENDENT AUDITOR’S REPORTS AS OF AND FOR THE FISCAL YEAR ENDED JUNE 30, 2023 THE CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL STATEMENTS AND INDEPENDENT AUDITOR’S REPORTS AS OF AND FOR THE FISCAL YEAR ENDED JUNE 30, 2023  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2023 THIS PAGE INTENTIONALLY LEFT BLANK 2  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2023 TABLE OF CONTENTS Page Independent Auditor’s Report on Financial Statements…………………………………… 5-7 Management’s Discussion and Analysis……………………………………………………… 9-20 The Basic Financial Statements: Government-Wide Financial Statements: Statement of Net Position …………………………………………………………………… 22 Statement of Activities ……………………………………………………………………… 23 Governmental Funds Financial Statements: Balance Sheet …………………………………………………………………………… 25 Statement of Changes in Fund Balances……………………………………………………… 26 Reconciliation of Governmental Fund and Government-Wide Financial Statements……… 27-28 Proprietary Funds Financial Statements: Statement of Net Position……………………………………………………………………… 30 Statement of Changes in Net Position………………………………………………………… 31 Statement of Cash Flows……………………………………………………………………… 32 Discretely Presented Component Units Combining Financial Statements: Statement of Net Position……………………………………………………………………… 34 Statement of Changes in Net Position………………………………………………………… 35 Footnotes to the Basic Financial Statements ………………………………………………… 36-72 Required Supplementary Information: Budgetary Comparison Information Budgetary Comparison Schedule (Budgetary Basis) – General Fund………………………… 74 Footnotes to Budgetary Comparison Schedule………………………………………………… 75 Pension and OPEB Plan Information Schedules of Pension Information…………………………………………………………… 76-78 Schedule OPEB Information ………………………………………………………………… 79 3  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2023 Supplementary Information: Combining Balance Sheet – General Fund Accounts…………………………………………… 81 Combining Schedule of Revenues, Expenditures and Changes in Fund Balance – General Fund Accounts ………………………………………………………………………………………… 82 Combining Balance Sheet - Non-Major Governmental Funds………………………………… 83-84 Combining Statement of Revenues, Expenditures and Changes in Fund Balance - Non-Major Governmental Funds…………………………………………………………………………… 85-86 Combining Schedule of Net Position – Miami Special Utilities Authority - Enterprise Fund Accounts……………………………………………………………………………………………87 Combining Schedule of Revenues, Expenses and Changes in Net Position– Miami Special Utilities Authority – Enterprise Fund Accounts ………………………………………………………… 88 Combining Schedule of Cash Flows – Miami Special Utilities Authority – Enterprise Fund Accounts………………………………………………………………………………………… 89 Combining Statement of Net Position – Internal Service Funds……………………………….… 90 Combining Statement of Revenues, Expenses and Changes in Net Position– Internal Service Funds…………………………………………………………………………………………….. 91 Combining Statement of Cash Flows – Internal Service Funds………………………………… 92 Combining Statement of Cash Flows – Discretely Presented Component Units ……………… 93 4  INDEPENDENT AUDITOR’S REPORT To the Honorable Mayor and Members of the City Council City of Miami, Oklahoma Opinions 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 Miami, Oklahoma, (the “City”) as of and for the year ended June 30, 2023, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents. In our opinion, 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 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, 2023, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. We did not audit the financial statements of the Miami Industrial Development Authority (“MIDA”), which represent 10 percent, 9 percent, and 14 percent, respectively, of the assets, net position, and 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. Basis for Opinions 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. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are 5 www.arledge.cpa considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards, we: • Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed. • Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. • Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit. Required Supplementary Information Accounting principles generally accepted in the United States of America require that 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 is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We and other auditors have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Supplementary 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 supplementary information as listed in the table of contents are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America by us and other auditors. In our opinion, based on our audit and the report of the other auditors, the combining and individual nonmajor fund financial statements are fairly stated, in all material respects, in relation to the basic financial statements as a whole. 6 Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated March 13, 2024, 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. Edmond, Oklahoma March 13, 2024 7  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2023 THIS PAGE INTENTIONALLY LEFT BLANK 8  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2023 MANAGEMENT DISCUSSION AND ANALYSIS 9  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2023 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, 2023. Please read it in conjunction with the City’s financial statements, which follow this section. FINANCIAL HIGHLIGHTS  For the fiscal year ended June 30, 2023, the City’s total net position increased by $5,110,462 or 10.5% from the prior year.  During the year, the City’s expenses for governmental activities were $14.6 million and were funded by program revenues of $3.7 million and further funded with taxes and other general revenues that totaled $12.2 million.  In the City’s business-type activities, such as utilities, program revenues exceeded expenses by $3.8 million.  At June 30, 2023, the General Fund reported an unassigned fund balance of $1,047,849.  For budgetary reporting purposes, the General Fund reported revenues under estimates of $1,590,168 or 18.25%, while expenditures were under the final appropriations by $1,290,016 or 11.0%.  The City implemented GASB Statement 94, Public-Private and Public-Public Partnerships and Availability Payment Arrangements, and GASB Statement 96, Subscription-Based Information Technology Arrangements, during the fiscal year. Implementation had no impact on the financial statments 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 10  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2023 The City’s Financial Reporting Entity This annual report includes all activities for which the City Council of the City of Miami is fiscally responsible. These activities are operated within several separate legal entities that are reported together to make up the City’s financial reporting entity. The City’s financial reporting entity includes the City of Miami, two blended component units, and four active discretely presented component units. 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 the MIDA offices. Miami Education Facilities Authority (MEFA) – public trust that promotes the development of educational facilities within the city. Trust is currently inactive. 11  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2023 Using This Annual Report This annual report is presented in a format that substantially meets the presentation requirements of the Governmental Accounting Standards Board (GASB) in accordance with generally accepted accounting principles. The presentation includes financial statements that communicate the City’s financial position and changes therein at two distinct levels:  The City as a Whole (a government-wide presentation)  The City’s Funds (a presentation of the City’s major and aggregate non-major funds) 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 provides 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. 12  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2023  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. 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 $53,938,866 at the close of the most recent fiscal year. 13  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2023 TABLE 1 NET POSITION (In Thousands) Governmental % Inc. Business-Type % Inc. % Inc. Activitie s (Dec.) Activities (Dec.) Total (Dec.) 2023 2022 2023 2022 2023 2022 Current assets $ 14,156 $ 14,777 -4% $ 23,343 $ 25,318 -8% $ 37,499 $ 40,095 -6% Capital assets, net 26,677 26,054 2% 33,954 30,367 12% 60,631 56,421 7% Total assets 40,833 40,831 0% 57,297 55,685 3% 98,130 96,516 2% Deferre d outflows 3,330 2,320 44% 1,311 753 74% 4,641 3,073 51% Current liabilities 2,866 3,107 -8% 5,866 6,883 -15% 8,732 9,990 -13% Non-current liabilities 24,311 21,783 12% 12,407 10,836 14% 36,718 32,619 13% Total liabilities 27,177 24,890 9% 18,273 17,719 3% 45,450 42,609 7% Deferre d inflows 1,900 5,877 -68% 1,483 2,276 -35% 3,383 8,153 -59% Net position Net investment capital assets 17,689 17,144 3% 27,993 19,375 44% 45,682 36,519 25% Restricted 4,388 3,404 29% 805 207 289% 5,193 3,611 44% Unrestricted (deficit) (6,991) (8,164) -14% 10,054 16,861 -40% 3,063 8,697 -65% Total net position $ 15,086 $ 12,384 22% $ 38,852 $ 36,443 7% $ 53,938 $ 48,827 10% 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 2023, the net investment in capital assets amounted to $45,683,118. 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, $5,193,317 also represents resources that are subject to external restrictions on how they may be used. The remaining balance of net position is unrestricted amounting to $3,062,431. Explanations of significant changes displayed in Table 1 are as follows: Governmental Activities: Deferred outflows – increased $1.0 million (44%) mainly due to an increase in deferred outflows related to pension. Non-current liabilities – increased $2.5 million (12%) due to an increase in net pension liability. Deferred inflows – decreased $4.0 million (68%) due to a decrease in deferred amounts related to pensions. Business-Type Activities: Deferred outflows – increased $0.5 million (74%) mainly due to an increase in deferred outflows related to pensions. Current liabilities – decreased $1.0 million (15%) mainly due to decrease in accounts payable. 14  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2023 Deferred inflows – decreased $8.8 million (35%) mainly due to a decrease in deferred amounts related to pensions. Changes in Net Position For the year ended June 30, 2023, net position of the primary government changed as follows: TABLE 2 CHANGES IN NET POSITION (In Thousands) Governmental % Inc. Business-Type % Inc. % Inc. Activities (Dec.) Activities (Dec.) Total (Dec.) 2023 2022 2023 2022 2023 2022 Revenues Charges for service $ 1,251 $ 1,019 23% $ 32,418 $ 32,053 1% $ 33,669 $ 33,072 2% Operating grants and contributions 1,107 1,007 10% 315 57 453% 1,422 1,064 34% Capital grants and contributions 1,325 104 1176% - 209 -100% 1,325 313 324% Taxes 10,351 9,926 4% - - - 10,351 9,926 4% Intergovernmental revenue 1,511 - 100% - - - 1,511 - 100% Investment income 27 11 145% 79 9 778% 106 20 430% M iscellaneous 304 107 184% 6 8 -25% 310 115 170% Total revenues 15,876 12,174 30% 32,818 32,336 1% 48,694 44,510 9% Expenses General government 1,629 1,694 -4% - - - 1,629 1,694 -4% Public safety 6,672 5,413 23% - - - 6,672 5,413 23% Streets 3,369 3,055 10% - - - 3,369 3,055 10% Culture and recreation 1,805 1,593 13% - - - 1,805 1,593 13% Economic development 537 392 37% - - - 537 392 37% Interest on debt 608 617 -1% - - - 608 617 -1% Water - - - 2,806 2,453 14% 2,806 2,453 14% Wastewater - - - 1,351 1,406 -4% 1,351 1,406 -4% Sanitation - - - 2,638 1,697 55% 2,638 1,697 55% Electric - - - 21,717 18,939 15% 21,717 18,939 15% Airport - - - 452 393 15% 452 393 15% Total expenses 14,620 12,764 15% 28,964 24,888 16% 43,584 37,652 16% Excess (deficiency) before transfers 1,256 (590) 313% 3,854 7,448 -48% 5,110 6,858 -25% Transfers 1,447 2,453 -41% (1,447) (2,453) -41% - - - Change in net position $ 2,703 $ 1,863 45% $ 2,407 $ 4,995 -52% $ 5,110 $ 6,858 -25% Explanations of significant changes in Table 2 are as follows: Governmental Activities: Public safety- increase $1.3 million (23%) due to an increase in operational expenses. Capital grants and contributions – increase of $1.2 million (1176%) due to an increase in funding from Oklahoma Department of Transportation. 15  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2023 Business-Type Activities: Electric expenses – increase of $2.8 million (15%) due to an increase in purchase energy expenses. 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.) 2023 2022 2023 2022 General government $ 1,629 $ 1,693 -4% $ (1,224) $ (1,209) 1% Public safety 6,672 5,414 23% (5,454) (4,485) 22% Streets 3,369 3,055 10% (1,849) (2,858) -35% Culture, parks and recreation 1,805 1,593 13% (1,450) (1,219) 19% Economic development 537 392 37% (351) (247) 42% Interest on long-term debt 608 617 -1% (608) (617) -1% Total $ 14,620 $ 12,764 15% ($10,937) $ (10,635) 3% For the year ended June 30, 2023, total expenses for governmental activities amounted to approximately $14.6 million which was an increase from the prior year of 15%. See Table 2 above for explanations of changes. 16  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2023 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. 2023 2022 2023 2022 Water $ 2,806 $ 2,453 14% $ 1,296 $ 1,335 -3% Wastewater 1,351 1,406 -4% 1,242 1,164 7% Sanitation 2,638 1,697 55% 233 1,150 -80% Electric 21,717 18,939 15% 1,283 3,782 -66% Airport 452 393 15% (284) - 100% Total $ 28,964 $ 24,888 16% $ 3,770 $ 7,431 -49% The City’s business-type activities include utility services for water, electricity, wastewater, sanitation, and airport. In reviewing the business-type activities net (expense)/revenue, the following highlights should be noted:  Total business-type activities reported net revenues of $3,770,038 for the year ended June 30, 2023. A FINANCIAL ANALYSIS OF THE CITY’S FUNDS As the City completed its 2023 fiscal year, the governmental funds reported a combined fund balance of $10.3 million or an 12.5% increase of $1,143,780. The enterprise funds reported combined net position of $37.6 million or a 6.7% increase from 2022. Fund Balance/Net Position Governmental Funds Proprietary Funds Restricted $ 4,431,459 Net investment in capital assets $ 27,993,544 Committed 217,492 Restricted for debt service and other 804,694 Assigned 4,642,810 Unrestricted 8,833,812 Unassigned 1,047,849 Total Fund Balance $ 10,339,610 Total Net Position $ 37,632,050 General Fund Budgetary Highlights For budgetary reporting purposes, the General Fund reported revenues under estimates of $1,590,168 or 18.25%, while expenditures were under the final appropriations by $1,290,016 or 17  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2023 CAPITAL ASSET AND DEBT ADMINISTRATION Capital Assets At the end of June 30, 2023, the City had $60.6 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 $4.2 million or 7.5% from the prior year. TABLE 5 Capital Assets (In Thousands) (Net of accumulated depreciation) Governmental Business-Type Activities Activities Total 2023 2022 2023 2022 2023 2022 Land $ 4,601 $ 4,601 $ 1,133 $ 791 5,734 $ 5,392 Buildings 5,705 6,044 6,820 7,296 12,525 13,340 M achinery, furniture and equipment 3,360 2,829 6,586 5,094 9,946 7,923 Infrastructure 12,555 12,336 18,240 14,689 30,795 27,025 Construction in progress 456 243 1,176 2,497 1,632 2,740 Totals $ 26,677 $ 26,053 $ 33,955 $ 30,367 $ 60,632 $ 56,420 This year’s more significant capital asset additions placed into service included: Sewer improvements $1,100,000 Street improvements $846,000 Water improvements $771,000 See Note 6 to the financial statements for more detailed information on the City’s capital assets and changes therein. Long- Term Debt At year-end, the City had $30.8 million in long-term debt outstanding which represents a $1.2 million increase, or 4%, from the prior year. The City’s changes in long-term debt by type of debt are as follows: 18  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2023 TABLE 6 Long-Term Debt (In Thousands) Governmental Business-Type Activities Activities Total 2023 2022 2023 2022 2023 2022 Accrued absences $ 711 $ 627 $ 212 $ 180 $ 923 $ 807 Revenue Bonds 16,530 17,005 6,240 6,705 22,770 23,710 Bond Premium (Discount) 125 145 5 36 130 181 Notes Payable- Direct borrowing 867 617 6,114 4,251 6,981 4,868 Totals $ 18,233 $ 18,394 $ 12,571 $ 11,172 $ 30,804 $ 29,566 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 2023-2024 budget is expected to remain level with a few exceptions. Any remaining funds from the $2.2M in American Rescue Plan Act (ARPA), associated with the Coronavirus Local Fiscal Recover Funds, received were budgeted per the eligible categories. The continued electric, water, and wastewater utility rates will fund the needed electric, water, and wastewater system improvements. With the high inflation rate, 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, continue to have a positive impact on our budget capacity. The City continually looks for ways to enhance our revenue base that will assist in completing major infrastructure and development projects. The Covid-19 pandemic, supply chain issues, and inflation that began affecting our community in March of 2020 continue to affect decision making as we transition to more normal operations. Spending remains optimistically cautious as our use and sales tax revenues remain positively affected. Sales tax for FY 22/23 ended up at 4.24% and use tax up at 4.01% over the previous year which more closely mirrors our normal growth pattern. 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 when the dam's operational license is renewed. That process started in 2018 and could potentially take several more years to complete. The City has engaged legal counsel to represent its interest during the relicensing process 19  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2023 and to require GRDA to modify its lake operations to reduce instances of flooding and to purchase flood easements. GRDA Winter Storm Uri In February 2021, the State of Oklahoma experienced a major winter storm, Uri, which 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 paid the amount in October 2022. The City opted to allow their sixteen (16) industrial customers to repay their actual usage during this time totaling $1,025,878.70. All industrial customers completed their payments as of October 2023. The City also 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. As of November 2023, approximately 16 months remain to recover the full amount. The City tracks the repayments and will eliminate the PCAX rate once the amount the City paid GRDA has been recovered. 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 20  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2023 BASIC FINANCIAL STATEMENTS – GOVERNMENT-WIDE 21  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2023 Statement of Net Position– June 30, 2023 Discretely Presented Primary Government Component Units Governmental Business-type Activities Activities Total ASSETS Cash and equivalents $ 12,518,922 $ 14,375,606 $ 26,894,528 $ 912,195 Investments 133,520 1,671,851 1,805,371 101,836 Accounts receivable, net 472,392 4,023,250 4,495,642 - Due from other governments 1,477,026 - 1,477,026 - Other receivables 451,564 436 452,000 500 Internal balances (1,207,272) 1,207,272 - - Leases receivable - 230,493 230,493 271,523 Inventory - 1,833,765 1,833,765 - Net pension asset 309,568 - 309,568 - Capital Assets Land and construction in progress 5,057,129 2,308,606 7,365,735 350,791 Other capital assets, net of depreciation 21,620,177 31,645,773 53,265,950 7,885,236 Total assets 40,833,026 57,297,052 98,130,078 9,522,081 DEFERRED OUTFLOWS: Deferred amounts related to pensions 3,012,490 1,022,853 4,035,343 - Deferred amounts related to OPEB 214,255 188,519 402,774 - Deferred amount on refunding 103,559 - 103,559 - Deferred amount related to GRDA settlement - 99,788 99,788 - Total deferred outflows of resources 3,330,304 1,311,160 4,641,464 - LIABILITIES Accounts payable and accrued liabilities 634,262 2,195,913 2,830,175 17,085 Claims liability 562,560 - 562,560 - Accrued interest payable 42,836 104,163 146,999 - Unearned revenue 786,097 1,328,050 2,114,147 - Long-term liabilities Due within one year 839,924 2,238,326 3,078,250 147,889 Due in more than one year 24,310,986 12,407,007 36,717,993 - Total liabilities 27,176,665 18,273,459 45,450,124 164,974 DEFERRED INFLOWS: Deferred amounts related to leases - 230,511 230,511 265,971 Deferred amounts related to pensions 757,881 457,569 1,215,450 - Deferred amounts related to OPEB 1,142,057 794,534 1,936,591 - Total deferred inflows of resources 1,899,938 1,482,614 3,382,552 265,971 NET POSITION: Net investment in capital assets 17,689,574 27,993,544 45,683,118 8,092,020 Restricted 4,388,623 804,694 5,193,317 - Unrestricted (deficit) (6,991,470) 10,053,901 3,062,431 999,116 Total net position $ 15,086,727 $ 38,852,139 $ 53,938,866 $ 9,091,136 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, 2023 Statement of Activities –Year Ended June 30, 2023 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 $ 1,629,005 $ 174,233 $ 230,628 $ - $ (1,224,144) $ - $ (1,224,144) $ - Public Safety 6,671,547 576,234 607,086 33,958 (5,454,269) - (5,454,269) - Public Works and Streets 3,368,866 74,335 180,202 1,264,904 (1,849,425) - (1,849,425) - Culture and Recreation 1,805,359 239,686 89,401 26,353 (1,449,919) - (1,449,919) - Economic Development 537,066 186,126 - - (350,940) - (350,940) - Interest on long-term Debt 608,544 - - - (608,544) - (608,544) - Total governmental activities 14,620,387 1,250,614 1,107,317 1,325,215 (10,937,241) - (10,937,241) - Business-type activities Water 2,806,116 3,786,622 315,268 - - 1,295,774 1,295,774 - Wastewater 1,350,625 2,592,628 - - - 1,242,003 1,242,003 - Sanitation 2,637,525 2,870,525 - - - 233,000 233,000 - Electric 21,716,902 22,999,977 - - - 1,283,075 1,283,075 - Airport 452,356 168,542 - - - (283,814) (283,814) - Total business-type activities 28,963,524 32,418,294 315,268 - - 3,770,038 3,770,038 - Total primary government $ 43,583,911 $ 33,668,908 $ 1,422,585 $ 1,325,215 (10,937,241) 3,770,038 (7,167,203) - Component Units Culture and Recreation $ 586,723 $ 263,111 $ 132,231 $ - (191,381) Economic Development 71,496 94,500 - - 23,004 Total component units $ 658,219 $ 357,611 $ 132,231 $ - (168,377) General revenues: Taxes: Sales and use taxes 9,755,772 - 9,755,772 - Property tax 9,314 - 9,314 - Franchise and public service taxes 367,354 - 367,354 - Hotel/motel taxes 218,827 - 218,827 - Grants and contributions not restricted to specific programs 1,510,627 - 1,510,627 - Investment income 27,434 78,831 106,265 6,613 Miscellaneous 303,765 5,741 309,506 - Transfers - internal activity 1,446,841 (1,446,841) - - Total general revenues and transfers 13,639,934 (1,362,269) 12,277,665 6,613 Change in net position 2,702,693 2,407,769 5,110,462 (161,764) Net position - beginning 12,384,034 36,444,370 48,828,404 9,252,900 Net position - ending $ 15,086,727 $ 38,852,139 $ 53,938,866 $ 9,091,136 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, 2023 BASIC FINANCIAL STATEMENTS - GOVERNMENTAL FUNDS 24  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2023 Governmental Funds Balance Sheet - June 30, 2023 Other Total Governmental Governmental General Fund Funds Funds ASSETS Cash and cash equivalents $ 3,720,404 $ 6,262,634 $ 9,983,038 Receivables: Accounts receivable 359,410 116,607 476,017 Due from other funds 87,654 45,061 132,715 Due from other governments and entities 1,212,104 264,922 1,477,026 Other receivables 7,500 - 7,500 Total assets $ 5,387,072 $ 6,689,224 $ 12,076,296 LIABILITIES, DEFERRED INFLOWS AND FUND BALANCES Liabilities: Accounts payable and accrued liabilities $ 190,375 $ 308,428 $ 498,803 Wages payable 124,951 1,351 126,302 Due to other funds 81,494 38,404 119,898 Total liabilities 396,820 348,183 745,003 DEFERRED INFLOWS OF RESOURCES Unavailable revenue 150,176 841,507 991,683 Fund balances: Restricted - 4,431,459 4,431,459 Commited - 217,492 217,492 Assigned 3,792,227 850,583 4,642,810 Unassigned 1,047,849 - 1,047,849 Total fund balances 4,840,076 5,499,534 10,339,610 Total liabilities, deferred inflows and fund balances $ 5,387,072 $ 6,689,224 $ 12,076,296 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, 2023 Governmental Funds Statement of Changes in Fund Balances – Year Ended June 30, 2023 Other Total Governmental Governmental General Fund Funds Funds REVENUES Taxes $ 7,745,900 $ 2,417,529 $ 10,163,429 Intergovernmental 826,384 3,089,865 3,916,249 Charges for services 427,351 124,955 552,306 Fines and forfeitures 326,916 - 326,916 Licenses and permits 137,350 - 137,350 Investment income 17,807 9,627 27,434 Miscellaneous 546,282 187,355 733,637 Total revenues 10,027,990 5,829,331 15,857,321 EXPENDITURES Current: General government 1,420,216 15,613 1,435,829 Public Safety 6,820,018 102,915 6,922,933 Public works and streets 1,565,931 999,328 2,565,259 Culture and recreation 1,432,962 101,539 1,534,501 Economic development 555,594 - 555,594 Capital Outlay - 3,106,299 3,106,299 Debt Service: Principal 86,979 601,707 688,686 Interest and other charges 7,827 534,658 542,485 Total expenditures 11,889,527 5,462,059 17,351,586 Excess (deficiency) of revenues over expenditures (1,861,537) 367,272 (1,494,265) OTHER FINANCING SOURCES (USES) Transfers in 10,785,215 577,012 11,362,227 Transfers out (8,747,592) (440,142) (9,187,734) Total other financing sources and uses 2,037,623 600,422 2,638,045 Net change in fund balances 176,086 967,694 1,143,780 Fund balances - beginning 4,663,990 4,531,840 9,195,830 Fund balances - ending $ 4,840,076 $ 5,499,534 $ 10,339,610 See accompanying notes to the basic financial statements. 26  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2023 Reconciliation of Governmental Funds and Government-Wide Financial Statements: Total fund balance, governmental funds $ 10,339,610 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. 26,677,306 Certain long-term assets are not available to pay for current fund liabilities and, therefore, are deferred in the funds. 205,586 Certain other assets and long-term elements are not available to pay current period expenditures and are classified as deferred outflows and are not reported in this fund financial statement, but are reported in the governmental activities of the Statement of Net Position. Net pension asset 309,568 Pension related deferred outflows 3,012,490 OPEB related deferred outflows 214,255 Deferred amounts on refunding 103,559 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: Note payable obligations (866,555) Interest payable (42,836) Net pension liability (5,744,219) Pension related deferred inflows (757,881) Total OPEB liability (1,174,184) OPEB related deferred inflows (1,142,057) Accrued compensated absences (710,916) Unamortized debt premium (125,036) Revenue bond payable (16,530,000) 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 1,318,037 Net Position of Governmental Activities in the Statement of Net Position $ 15,086,727 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, 2023 Changes in Fund Balances – Changes in Net Position Reconciliation: Net change in fund balances - total governmental funds: $ 1,143,780 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 2,740,192 Capital assets donated 26,353 Depreciation expense (2,143,158) 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. 623,845 Revenues in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds: Change in unavailable revenue 50,478 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: Note payable proceeds (463,552) Note payable principal payments 213,684 Revenue bond principal payments 475,000 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 792 Change in accrued compensated absences (83,474) Change in total OPEB liability 76,154 Change in amortization of bond premium 20,276 Change in amortization of unamortized gain/loss (88,767) 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 111,090 Change in net position of governmental activities $ 2,702,693 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, 2023 BASIC FINANCIAL STATEMENTS - PROPRIETARY FUNDS 29  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2023 Proprietary Funds Statement of Net Position - June 30, 2023 Enterprise Funds Miami Special Utility Internal Authority Airport Fund Total Service Funds ASSETS Current assets: Cash and cash equivalents $ 11,465,672 $ 70,950 $ 11,536,622 $ 2,535,884 Cash and cash equivalents, restricted 3,037,257 - 3,037,257 - Investments 1,472,383 - 1,472,383 133,520 Accounts receivable, net 3,988,487 34,763 4,023,250 - Leases receivables 18,582 - 18,582 - Other receivable 436 - 436 440,439 Inventory 1,810,085 23,680 1,833,765 - Due from other funds 45,244 30,128 75,372 499,540 Total current assets 21,838,146 159,521 21,997,667 3,609,383 Non-current assets: Cash and cash equivalents, restricted 1,195 - 1,195 - Leases receivables 211,911 - 211,911 - Capital assets: Land, construction in progress, and water rights 2,295,745 12,861 2,308,606 - Other capital assets, net of accumulated depreciation 27,821,023 3,824,750 31,645,773 - Total non-current assets 30,329,874 3,837,611 34,167,485 - Total assets 52,168,020 3,997,132 56,165,152 3,609,383 DEFERRED OUTFLOW OF RESOURCES Deferred amounts related to pensions 1,022,853 - 1,022,853 - Deferred amounts related to OPEB 188,519 - 188,519 - Deferred amounts related to GRDA settlement 99,788 - 99,788 - Total deferred outflow of resources 1,311,160 - 1,311,160 - LIABILITIES Current liabilities: Accounts payable and accrued liabilities 2,133,193 5,575 2,138,768 9,157 Claims liability - - - 562,560 Wages payable 56,416 729 57,145 - Due to other funds 86,341 1,848 88,189 499,540 Accrued interest payable 104,163 - 104,163 - Accrued compensated absences 21,100 147 21,247 - Unearned revenue 1,328,050 - 1,328,050 - Refundable deposits 30,787 - 30,787 - Revenue bond payable 485,000 - 485,000 - Notes payable 1,701,292 - 1,701,292 - Total current liabilities 5,946,342 8,299 5,954,641 1,071,257 Non-current liabilities: Accrued compensated absences 189,894 1,319 191,213 - Net pension liability 1,029,637 - 1,029,637 - Total OPEB liability 736,353 - 736,353 - Refundable deposits 277,085 - 277,085 - Revenue bond payable 5,755,000 - 5,755,000 - Notes payable, net 4,417,719 - 4,417,719 - Total non-current liabilities 12,405,688 1,319 12,407,007 - Total liabilities 18,352,030 9,618 18,361,648 1,071,257 DEFERRED INFLOW OF RESOURCES Deferred amounts related to leases 230,511 - 230,511 - Deferred amounts related to pensions 457,569 - 457,569 - Deferred amounts related to OPEB 794,534 - 794,534 - Total deferred inflow of resources 1,482,614 - 1,482,614 - NET POSITION Net investment in capital assets 24,155,933 3,837,611 27,993,544 - Restricted for debt service 804,694 - 804,694 - Unrestricted 8,683,909 149,903 8,833,812 2,538,126 Total net position $ 33,644,536 $ 3,987,514 $ 37,632,050 $ 2,538,126 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 reported as interfund balances 1,220,089 Total net position per Government-Wide financial statements $ 38,852,139 See accompanying notes to the basic financial statements. 30  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2023 Proprietary Funds Statement of Changes in Net Position - Year Ended June 30, 2023 Enterprise Funds Miami Special Utility Internal Service Authority Airport Fund Total Fund REVENUES Charges for services $ 31,232,838 $ 174,273 $ 31,407,111 $ 1,913,512 Fees, licenses and permits 132,968 - 132,968 - Miscellaneous 923,410 - 923,410 194,905 Total operating revenues 32,289,216 174,273 32,463,489 2,108,417 OPERATING EXPENSES Personal services 3,929,797 47,644 3,977,441 - Materials and supplies 17,457,190 85,903 17,543,093 - Other services and charges 4,671,424 18,676 4,690,100 466,903 Insurance claims and expense - - - 1,488,313 Depreciation expense 2,218,829 300,133 2,518,962 - Total operating expenses 28,277,240 452,356 28,729,596 1,955,216 Operating income (loss) 4,011,976 (278,083) 3,733,893 153,201 NON-OPERATING REVENUES (EXPENSES) Investment income 78,831 - 78,831 1,551 Miscellaneous 287,510 - 287,510 - Interest expense and fiscal charges (289,286) - (289,286) - Total non-operating revenue (expenses) 77,055 - 77,055 1,551 Income (loss) before contrbutions and transfers 4,089,031 (278,083) 3,810,948 154,752 Contributed assets- governmental activities 727,652 - 727,652 - Transfers in 9,043,128 1,480 9,044,608 - Transfers out (11,219,101) - (11,219,101) - Change in net position 2,640,710 (276,603) 2,364,107 154,752 Total net position - beginning 31,003,826 4,264,117 35,267,943 2,383,374 Total net position - ending $ 33,644,536 $ 3,987,514 $ 37,632,050 $ 2,538,126 Change in net position above 2,364,107 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 43,662 Change in Business-Type Activities in Net Position per Government-Wide Financial Statements $ 2,407,769 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, 2023 Proprietary Funds Statement of Cash Flows - Year Ended June 30, 2023 Enterprise Funds Miami Special Utility Internal Service Authority Airport Fund Total Fund CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers $ 33,339,967 182,633 $ 33,522,600 $ 2,228,072 Payments to suppliers (23,754,820) (126,498) (23,881,318) (477,539) Payments to employees (4,445,060) (47,698) (4,492,758) - Receipts from other funds 42,205 - 42,205 41,092 Payments to other funds (45,856) - (45,856) (41,092) Receipts of customer meter deposits 128,511 - 128,511 - Refunds of customer meter deposits (171,654) - (171,654) - Claims and judgments paid - - - (1,601,109) Net cash provided by operating activities 5,093,293 8,437 5,101,730 149,424 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Transfers from other funds 9,043,128 1,480 9,044,608 - Transfers to other funds (11,219,101) - (11,219,101) - Net cash provided by (used in) noncapital financing activities (2,175,973) 1,480 (2,174,493) - CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Capital assets purchased (5,378,577) - (5,378,577) - Principal paid on debt (1,716,618) - (1,716,618) - Proceeds from debt 3,114,358 - 3,114,358 - Interest and fiscal agent fees paid on debt (329,428) - (329,428) - Net cash provided by (used in) capital and related financing activities (4,310,265) - (4,310,265) - CASH FLOWS FROM INVESTING ACTIVITIES Sale (Purchase) of investments - - - (1,552) Interest and dividends 72,713 - 72,713 1,551 Net cash provided by (used in) investing activities 72,713 - 72,713 (1) Net increase (decrease) in cash and cash equivalents (1,320,232) 9,917 (1,310,315) 149,423 Balances - beginning of year 15,824,356 61,033 15,885,389 2,386,461 Balances - end of year $ 14,504,124 $ 70,950 $ 14,575,074 $ 2,535,884 Reconciliation to Statement of Net Position: Cash and cash equivalents $ 11,465,672 $ 70,950 $ 11,536,622 $ 2,535,884 Restricted cash and cash equivalents - current 3,037,257 - 3,037,257 - Restricted cash and cash equivalents - noncurrent 1,195 - 1,195 - Total cash and cash equivalents, end of year $ 14,504,124 $ 70,950 $ 14,575,074 $ 2,535,884 - Reconciliation of operating income (loss) to net cash provided by (used in) operating activities: Operating income (loss) $ 4,011,976 $ (278,083) $ 3,733,893 $ 153,201 Adjustments to reconcile operating income (loss) to net cash provided by operating activities: Depreciation expense 2,218,829 300,133 2,518,962 - Other nonoperating revenue 287,510 - 287,510 - Change in assets, liabilities and deferrals: Receivables, net 1,060,038 8,360 1,068,398 119,655 Leases receivable 18,471 - 18,471 Due from other funds (561,223) - (561,223) (41,092) Inventory (377,295) 9,344 (367,951) - Deferred outflows related to pension (552,828) - (552,828) - Deferred outflows related to OPEB (4,908) - (4,908) - Accounts payable (1,248,911) (31,263) (1,280,174) (10,636) Claims liability - - - (112,796) Due to other funds 557,572 - 557,572 41,092 Due to employees (22,788) (68) (22,856) - Unearned revenue (315,268) Refundable deposits (43,143) - (43,143) - Total OPEB liability (148,337) - (148,337) - Net pension liability 974,950 - 974,950 - Accrued compensated absences 31,984 14 31,998 - Deferred inflows related to pension (854,762) - (854,762) - Deferred inflows related to leases (19,209) - (19,209) Deferred inflows related to OPEB 80,635 - 80,635 - Net cash provided by operating activities $ 5,093,293 $ 8,437 $ 5,101,730 $ 149,424 Noncash activities: Assets contributed by governmental activities $ 727,652 $ - $ 727,652 $ - $ 727,652 $ - $ 727,652 $ - 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, 2023 BASIC FINANCIAL STATEMENTS – DISCRETELY PRESENTED COMPONENT UNITS 33  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2023 Discretely Presented Component Units Combining Statement of Net Position - June 30, 2023 MCFA MDRA MIDA MIPFA Total ASSETS Current assets: Cash and cash equivalents $ 282,407 $ 161,800 $ 226,788 $ 241,200 $ 912,195 Investments 101,836 - - - 101,836 Receivables: Leases receivable - - - 7,631 7,631 Other receivable - - - 500 500 Total current assets 384,243 161,800 226,788 249,331 1,022,162 Non-current assets: Leases receivable - - - 263,892 263,892 Capital assets: Land, construction in progress, and water rights - - 102,570 248,221 350,791 Other capital assets, net of accumulated depreciation 7,000,766 - 663,452 221,018 7,885,236 Total non-current assets 7,000,766 - 766,022 733,131 8,499,919 Total assets 7,385,009 161,800 992,810 982,462 9,522,081 LIABILITIES Current liabilities: Accounts payable and accrued liabilities 1,893 13,692 - 1,500 17,085 Accrued compensated absences - 3,440 - - 3,440 Accrued interest on notes payable - - 442 - 442 Notes payable - - 144,007 - 144,007 Total liabilities 1,893 17,132 144,449 1,500 164,974 DEFERRED INFLOW OF RESOURCES Deferred amounts related to leases - - - 265,971 265,971 NET POSITION Net investment in capital assets 7,000,766 - 622,015 469,239 8,092,020 Unrestricted 382,350 144,668 226,346 245,752 999,116 Total net position $ 7,383,116 $ 144,668 $ 848,361 $ 714,991 $ 9,091,136 See accompanying notes to the basic financial statements. 34  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2023 Discretely Presented Component Units Combining Statement of Changes in Net Position - Year Ended June 30, 2023 MCFA MDRA MIDA MIPFA Total REVENUES Charges for services $ 102,870 $ 160,241 $ 71,773 $ 22,727 $ 357,611 Miscellaneous - - - - - Total operating revenues 102,870 160,241 71,773 22,727 357,611 OPERATING EXPENSES Personal services - 117,321 - - 117,321 Materials and supplies 4,614 20,888 - 255 25,757 Other services and charges 60,032 145,435 11,750 3,638 220,855 Depreciation expense 238,433 - 20,727 28,713 287,873 Total operating expenses 303,079 283,644 32,477 32,606 651,806 Operating income (loss) (200,209) (123,403) 39,296 (9,879) (294,195) NON-OPERATING REVENUES (EXPENSES) Investment income 1,687 202 1 4,723 6,613 Miscellaneous income - 132,231 - - 132,231 Interest expense and fiscal charges - - (6,413) - (6,413) Total non-operating revenue (expenses) 1,687 132,433 (6,412) 4,723 132,431 Change in net position (198,522) 9,030 32,884 (5,156) (161,764) Total net position - beginning 7,581,638 135,638 815,476 720,147 9,252,899 Total net position - ending $ 7,383,116 $ 144,668 $ 848,361 $ 714,991 $ 9,091,136 See accompanying notes to the basic financial statements. 35  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2023 FOOTNOTES TO BASIC FINANCIAL STATEMENTS 36  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2023 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 ends July 31. Miami Education Facilities Authority (MEFA) – public trust that promotes the development of educational facilities within the city. Trust is currently inactive. 37  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2023 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, and 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 funds report their activities on the modified accrual basis of accounting and current financial resources 38  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2023 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. 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, S&L Fiscal Recovery Fund, 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.  Capital Improvement Fund accounts for use tax used for city capital projects for various departments. 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. 39  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2023 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.  Worker’s 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 include 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, 2023, by these entities are as follows: 40  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2023 Maturities in Years Fair Credit On Less T ype Value Rating Demand T han One Demand deposits $ 23,833,050 N/A $ 23,833,050 $ - T ime deposits 1,805,371 N/A - 1,805,371 Money Market Funds 3,061,478 Not rated - 3,061,478 Sub-T otal $ 28,699,899 $ 23,833,050 $ 4,866,849 Reconciliation to Financial Statements: Cash and cash equivalents $ 26,894,528 Investments 1,805,371 $ 28,699,899 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, 2023: • Money Market Mutual Funds of $3,061,478 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, 2023, the City was not exposed to custodial credit risk. Component Unit: The bank deposits of the MDRA component unit of $161,800 at June 30, 2023 were fully insured by the F.D.I.C. The bank deposits of the MCFA component unit of $384,243 at June 30, 2023 were fully insured. The bank deposits of the MIPFA component unit of $241,200 at June 30, 2023 were fully insured by the F.D.I.C. The bank deposits of the MIDA component unit of $226,788 at June 30, 2023 were fully insured by the F.D.I.C. Investment Credit Risk – The City’s investment policy limits investments, excluding retirement trust fund investments, to the following: 41  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2023 a. Obligations of the U. S. Government, its agencies and instrumentalities; b. Collateralized or insured non-negotiable certificates of deposit or other evidence 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, 2023, the investments held by the City mature between 2023 through 2024. 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, 2023. 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, 2023, are as follows: Cash and cash equivalents: Cash Restricted for Refundable deposits $ 307,872 Money Markets Restricted for Debt Service 2,729,385 $ 3,037,257 Cash and cash equivalents, noncurrent: Cash Restricted for Refundable deposits 1,195 $ 1,195 42  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2023 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 1,386,649 $ - $ 1,386,649 Court fines 732,145 (581,969) 150,176 Grants receivable 203,359 - 203,359 Other 660,798 - 660,798 T otal Governmental Activities $ 2,982,951 $ (581,969) $ 2,400,982 Reconciliation to Statement of Net Position: Accounts receivable, net $ 472,392 Due from other governmental agencies 1,477,026 Other receivable 451,564 T otal $ 2,400,982 Business-T ype Activities: Utilities $ 6,438,401 $ (2,415,151) $ 4,023,250 5. Leases Receivables The City is a party as lessor for two noncancellable long-term leases of buildings, and infrastructure. The corresponding lease receivable are recorded in an amount equal to the present value of the expected future minimum lease payments received or received, respectively, discounted by an applicable interest rate. Lease-related amounts are recognized at the inception of leases in which the city is the lessor and are recorded in an amount equal to the corresponding lease receivable plus certain additional amounts received from the lessee at or before the commencement of the lease term that relate to future periods, less any lease incentives paid to, or on behalf of, the lessee at or before the commencement of the lease term. The inflow of resources is recognized in a systematic and rational manner over the term of the lease. 43  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2023 Business-type Activities The City as a lessor, has entered into lease agreements involving an infrastructure. The total amount of inflows of resources, including lease revenue and interest revenue recognized during the fiscal year was $19,209. Component Unit The MIPFA as a lessor, has entered into lease agreements involving a building. The total amount of inflows of resources, including lease revenue and interest revenue recognized during the fiscal year was $9,499. 6. 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. 7. 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 the acquisition 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, 2023, capital assets balances changed as follows: Balance at Transfers/ Balance at July 1, 2022 Additions Deductions June 30, 2023 PRIMARY GOVERNMENT: Governmental activities: Capital assets not being depreciated: Land $ 4,601,374 $ - $ - $ 4,601,374 Construction in progress 242,790 240,725 27,760 455,755 Total capital assets not being depreciated 4,844,164 240,725 27,760 5,057,129 Other capital assets: Buildings 23,180,501 - - 23,180,501 Infrastructure 47,549,569 817,892 - 48,367,461 M achinery, furniture and equipment 12,986,479 1,735,688 - 14,722,167 Total other capital assets at historical cost 83,716,549 2,553,580 - 86,270,129 Less accumulated depreciation for: Buildings 17,136,077 339,520 - 17,475,597 Infrastructure 35,213,445 598,787 - 35,812,232 M achinery, furniture and equipment 10,157,272 1,204,851 - 11,362,123 Total accumulated depreciation 62,506,794 2,143,158 - 64,649,952 Other capital assets, net 21,209,755 410,422 - 21,620,177 Governmental activities capital assets, net $ 26,053,919 $ 651,147 $ 27,760 $ 26,677,306 44  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2023 Balance at Transfers/ Balance at July 1, 2022 Additions Deductions June 30, 2023 Business-type activities: Capital assets not being depreciated: Land $ 790,800 $ 342,251 $ - $ 1,133,051 Construction in progress 2,497,276 2,099,360 3,421,081 1,175,555 Total capital assets not being depreciated 3,288,076 2,441,611 3,421,081 2,308,606 Other capital assets: Buildings and improvement 21,098,912 - - 21,098,912 M achinery, furniture and equipment 20,742,096 2,345,845 - 23,087,941 Infrastructure 33,199,909 4,739,853 - 37,939,762 Total other capital assets at historical cost 75,040,917 7,085,698 - 82,126,615 Less accumulated depreciation for: Buildings and improvement 13,802,908 476,208 - 14,279,116 M achinery, furniture and equipment 15,648,333 853,445 - 16,501,778 Infrastructure 18,510,639 1,189,309 - 19,699,948 Total accumulated depreciation 47,961,880 2,518,962 - 50,480,842 Other capital assets, net 27,079,037 4,566,736 - 31,645,773 Business-type activities capital assets, net $ 30,367,113 $ 7,008,347 $ 3,421,081 $ 33,954,379 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 $ 273,062 Public Safety 220,787 Streets 1,311,148 Culture and Recreation 338,161 Total $ 2,143,158 Business-Type Activities: Airport $ 300,133 Electric 963,135 Water 565,166 Wastewater 419,768 Sanitation 270,760 Total $ 2,518,962 45  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2023 Capital assets of the component units were: Balance at Balance at August 1, 2022 Additions Deductions July 31, 2023 MIDA - Discreetly Presented Component unit Capital assets not being depreciated: Land $ 102,570 $ - $ - $ 102,570 Total capital assets not being depreciated 102,571 - - 102,570 Other capital assets: Buildings and utility infrastructure 1,036,352 - - 1,036,352 Less accumulated depreciation for: Buildings and utility infrastructure 352,173 20,727 - 372,900 Other capital assets, net 704,906 (20,727) - 663,452 M IDA capital assets, net $ 807,477 $ (20,727) $ - $ 766,022 M IPFA Balance at Balance at July 1, 2022 Additions Deductions June 30, 2023 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 393,310 19,681 - 412,991 M achinery, furniture and equipment 113,467 9,033 - 122,500 Total accumulated depreciation 506,777 28,714 - 535,491 Other capital assets, net 249,732 (28,714) - 221,018 M IPFA capital assets, net $ 497,953 $ (28,714) $ - $ 469,239 M CFA Balance at Balance at July 1, 2022 Additions Deductions June 30, 2023 MCFA - Discreetly Presented Component unit Other capital assets: Buildings $ 8,851,208 $ - $ - $ 8,851,208 Less accumulated depreciation for: Buildings 1,612,009 238,433 - 1,850,442 Other capital assets, net 7,239,199 (238,433) - 7,000,766 M CFA capital assets, net $ 7,239,199 $ (238,433) $ - $ 7,000,766 46  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2023 8. 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 * 86,341 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 * 44,709 Posting correction Airport Fund * General Fund * 30,128 Posting correction Workers Compensation Fund Health Insurance Fund 499,540 deposit to the wrong fund T otal $ 707,627 * Denotes major fund. Due From Due T o Net Internal Reconciliation to Fund Financial Statements: Other Funds Other Funds Balances Governmental Funds $ 132,715 $ (119,898) $ 12,817 Proprietary Funds 75,372 (88,189) (12,817) Internal Service Funds 499,540 (499,540) - T otal $ 707,627 $ (707,627) $ - Reconciliation to Statement of Net Position: Net Internal Balances $ (12,817) Internal Service Fund Activity reported in Business-type Activities 1,220,089 Net Internal Balance $ 1,207,272 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, 2023, were as follows: 47  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2023 Transfe r In Transfe r O ut Amount Nature of Inte rfund Transfe r General Fund * MSUA $ 10,669,101 Operating subsidy/pledged sales tax General Fund Capital Improvement Fund 66,114 B Operating subsidy General Fund * MSUA 50,000 Operating subsidy Street and alley * MSUA 500,000 A Operating subsidy Capital Improvement Fund * General Fund 73,312 A Operating subsidy Capital Improvement Fund General Fund 3,700 A Capital project MSUA Capital Improvement Fund 374,028 B Budgeted MSUA * General Fund 8,670,580 Operating subsidy/pledged sales tax $ 20,406,835 Denotes Major Fund Subtotal non-major Govermental Funds transfers in $ 577,012 A Subtotal non-major Govermental Funds transfers out $ 440,142 B T ransfers to T ransfers from Net Reconciliation to fund financial stateme nts: Other Funds Other Funds T ransfers Governmental Funds $ (9,187,734) $ 11,362,227 $ 2,174,493 Enterprise Funds (11,219,101) 9,044,608 (2,174,493) T otals $ (20,406,835) $ 20,406,835 $ - Reconciliation to Stateme nt of Activitie s: Net T ransfers $ (2,174,493) T ransfer of assets from Governmental Activities to Business T ype Activities 727,652 T ransfers - Internal Activity $ (1,446,841) 9. Long-Term Obligations The City’s long-term obligations consist of revenue bonds and notes, capital lease obligations, accrued compensated absences and long-term deposits subject to refund. For the year ended June 30, 2023, the City’s long-term obligation balances changed as follows: Primary Government: Balance Balance Due Within Type of Debt July 1, 2022 Additions Deductions June 30, 2023 One Year Governmental Activities: Revenue Bond Premium $ 145,312 $ - $ 20,276 $ 125,036 $ - Revenue Bonds 17,005,000 - 475,000 16,530,000 485,000 Notes Payable - direct borrowings 616,687 463,552 213,684 866,555 283,832 Accrued Compensated Absences 627,442 83,474 - 710,916 71,092 Total Governmental Activities $ 18,394,441 $ 547,026 $ 708,960 18,232,507 839,924 Plus: Total OPEB liability 1,174,184 - Net pension liability 5,744,219 - $ 25,150,910 $ 839,924 Reconcilation to Statement of Net Position: Due within one year $ 839,924 Due in more than one year 24,310,986 $ 25,150,910 48  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2023 Balance Balance Due Within Type of Debt July 1, 2022 Additions Deductions June 30, 2023 One Year Business-Type Activities: Notes Payable - Direct borrowings $ 4,251,098 $ 3,114,358 $ 1,251,618 $ 6,113,838 $ 1,701,292 Unamortized Bond Premium (Discount) 36,215 - 31,042 5,173 - Revenue Bonds 6,705,000 - 465,000 6,240,000 485,000 Accrued Compensated Absences 180,462 31,998 - 212,460 21,247 Total Business-Type Activities $ 11,172,775 $ 3,146,356 $ 1,747,660 12,571,471 2,207,539 Plus: Total OPEB liability 736,353 - Net pension liability 1,029,637 - Refundable deposits 307,872 30,787 $ 14,645,333 $ 2,238,326 Reconcilation to Statement of Net Position: Due within one year $ 2,238,326 Due in more than one year 12,407,007 $ 14,645,333 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. $16,530,000 Current portion $485,000 Non-current portion 16,045,000 $16,530,000 Notes Payable – Direct Borrowings: $304,491 note payable for the purchase of fire tanker trucks, matures August 2027 with a stated interest rate of 2.14%. If the City defaults, the collateralized equipment will be returned to the lender. $186,756 $311,328 note payable for the purchase of fire pumper truck, matures August 2027 with a stated interest rate of 2.14%. If the City defaults, the collateralized equipment will be returned to the lender. 189,598 $255,638 note payable for the purchase of excavator, matures February 2025 with a stated interest rate of 1.67%. If the City defaults, the collateralized equipment will be returned to the lender. 103,081 $65,495 note payable for the purchase of excavator, matures October 2027 with a stated interest rate of 3.91%. If the City defaults, the collateralized equipment will be returned to the lender. 58,403 $31,776 note payable for the purchase of Ford Explorer, matures December 2025 with a stated interest rate of 3.81%. If the City defaults, the collateralized equipment will be returned to the lender. 25,873 $55,427 note payable for the purchase of a Ford Interceptor, matures December 2025 with a stated interest rate of 4.30%. If the City defaults, the collateralized equipment will be returned to the lender. 46,668 49  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2023 $55,427 note payable for the purchase of a Ford Interceptor, matures December 2025 with a stated interest rate of 4.30%. If the City defaults, the collateralized equipment will be returned to the lender. 46,668 $55,427 note payable for the purchase of a Ford Interceptor, matures December 2025 with a stated interest rate of 4.30%. If the City defaults, the collateralized equipment will be returned to the lender. 46,668 $200,000 note payable for the purchase of a wheel loader, matures November 2025 with a stated interest rate of 3.8%. If the City defaults, the collateralized equipment will be returned to the lender. 162,840 Total notes payable $866,555 Current portion $283,832 Non-current portion 582,723 $866,555 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: Revenue Bond Payable – 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. $6,240,000 Total Revenue Bonds Payable $6,240,000 Current portion $485,000 Non-current portion 5,755,000 $6,240,000 Notes Payable – 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. $44,000 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. 79,777 50  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2023 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. 229,320 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. 59,472 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. 465,000 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 $1,144,862 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. 2,346,844 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 $1,559,345 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 enforce action in action of parties under provisions of the indenture, security agreement or lease agreement. 1,325,095 $286,418 note payable for the purchase of a digger derrick, matures April 2026, with a stated interest rate of 4.84%. If the Authority defaults, the collateralized equipment will be returned to the lender. 264,094 51  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2023 $174,200 note payable for the purchase of a telescopic ariel device, matures April 2026 with a stated interest rate of 4.84%. If the Authority defaults, the collateralized equipment will be returned to the lender. 160,622 $346,196 note payable for the purchase of a freightliner with digger, matures April 2026 with a stated interest rate of 4.84%. If the Authority defaults, the collateralized equipment will be returned to the lender. 319,213 $424,300 note payable for the purchase of a vacuum truck, matures April 2026 with a stated interest rate of 4.84%. If the Authority defaults, the collateralized equipment will be returned to the lender. 391,229 $314,092 note payable for the purchase of a cat wheel loader, matures December 2029 with a stated interest rate of 4.01%. If the Authority defaults, the collateralized equipment will be returned to the lender. 287,757 $129,393 note payable for the purchase of a backhoe, matures November 2027 with a stated interest rate of 3.91%. If the Authority defaults, the collateralized equipment will be returned to the lender. 115,542 $31,776 note payable for the purchase of a Ford explorer, matures December 2025 with a stated interest rate of 3.81%. If the Authority defaults, the collateralized equipment will be returned to the lender. 25,873 Total Notes Payable – Direct Borrowings $6,113,838 Current portion $1,701,292 Non-current portion 4,412,544 $6,113,838 Long-term debt service requirements to maturity are as follows: Governmental-Type Activities Revenue Bonds Payable Notes Payable - Direct Borrowings Year Ending June 30, Principal Interest Principal Interest 2024 $ 485,000 $ 509,188 $ 283,832 $ 63,952 2025 495,000 499,388 291,410 56,103 2026 505,000 489,388 168,932 48,904 2027 515,000 479,188 107,368 48,073 2028 525,000 468,394 15,013 79 2029-2033 1,085,000 2,213,863 - - 2034-2038 4,435,000 1,992,150 - - 2039-2043 3,925,000 1,242,375 - - 2044-2047 4,560,000 641,250 - - Total $ 16,530,000 $ 8,535,184 $ 866,555 $ 217,111 52  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2023 Business-Type Activities Notes Payable-Direct Borrowings Revenue Bonds Payable Year Ending June 30, Principal Interest Principal Interest 2024 $ 1,701,292 $ 186,262 $ 485,000 $ 202,725 2025 1,515,099 141,774 500,000 188,175 2026 744,992 105,071 515,000 173,175 2027 376,841 90,979 530,000 157,725 2028 365,806 83,282 545,000 141,825 2029-2033 1,652,403 321,251 3,000,000 435,575 20234-2038 1,686,250 183,984 665,000 23,275 2039-2042 1,294,000 45,765 - - Amount to be drawn (3,222,845) - - - Total $ 6,113,838 $ 1,158,368 $ 6,240,000 $ 1,322,475 MDRA Debt: Balance Balance Due Within Type of Debt July 1, 2022 Additions Deductions June 30, 2023 One Year Component Unit: Accrued Compensated Absences $ 3,208 $ 232 $ - $ 3,440 $ 344 Total MDRA $ 3,208 $ 232 $ - $ 3,440 $ 344 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% due on demand $79,706 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%, due on demand 49,199 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%, due on demand 15,102 Total debt outstanding – MIDA $144,007 Balance Balance Due Within Type of Debt July 1, 2022 Additions Deductions June 30, 2023 One Year Component Unit: MIDA Note payable (direct borrowings) $ 207,447 $ - $ 63,441 $ 144,006 $ - 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 53  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2023 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 $8,801,104. The 2019 note refinanced the 2003B and 2004 B notes. Net utility revenues received in the current year were $6,092,530. Debt service payments of $1,037,107 for the current fiscal year were 17% of pledged net utility revenues. Pledged Sales Tax – The City has pledged 3.65 cents (or 100%) of future sales tax revenues to repay $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 2016 bonds refinanced the 2010 bonds that were originally for street purposes and the 2013 bond anticipation note for the stadium construction. The 2018 bonds were for capital improvements. 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 2046 and 2033, respectively. The total principal and interest payable for the remainder of the life of these bonds is $32,297,406. Pledged sales taxes received in the current year were $8,669,101. Net revenues and sales tax pledged during the year was $14,761,631. Debt service payments of $1,680,113 for the current fiscal year were 11.3% of the pledged revenue. 10. 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, 2023 net position restricted by enabling legislation totaled $224,822. 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. 54  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2023 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: Other General Governmental Fund Fund Total Fund Balance: Restricted For: Police operations - grants $ - $ 137,182 $ 137,182 General obligation debt service - 198,369 198,369 Capital improvements - 196,998 196,998 Street improvements - 1,623,275 1,623,275 Culture and rec programs - 310,214 310,214 Economic development - 91,716 91,716 Grant fund 1,797,939 1,797,939 Police - drug programs - 75,766 75,766 Sub-total restricted - 4,431,459 4,431,459 Committed for: Street operations - 217,492 217,492 Assigned for: Capital improvements - 850,583 850,583 Demolition 241,448 - 241,448 Culture and rec programs - - - Supplement next year's budget 3,550,779 - 3,550,779 Sub-total assigned 3,792,227 850,583 4,642,810 Unassigned: 1,047,849 - 1,047,849 TOTAL FUND BALANCE $ 4,840,076 $ 5,499,534 $ 10,339,610 55  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2023 12. 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, 2023, the City did not assess a property tax. 13. Risk Management The City is exposed to various risks of loss related to torts; theft of, damage to, or destruction of assets; errors and omissions; injuries to employees; employee health and life; and natural disasters. The City manages these various risks of loss as follows:  General Liability – Covered through purchased insurance  Physical Property – Covered through purchased insurance with a $35,000 deductible.  Workers’ Compensation – Workers’ compensation is covered through self-insurance using a third-party processor to process claims. The City also has a stop-loss policy which covers individual claims in excess $550,000 for all classes of employees per 56  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2023 occurrence with the exceptions of classifications of electric, fire, and police who have a $750,000 specific retention  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 specific deductible stop-loss policy which covers individual claims in excess of $75,000. Aggregate excess loss insurance 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, 2021 $ 332,780 $ 483,984 $ 2,212 $ 818,976 Claims and changes in estimates 1,109,891 2,163,138 6,295 3,279,324 Claims payments (908,090) (2,506,367) (8,507) (3,422,964) Claim liability, June 30, 2022 $ 534,581 $ 140,755 $ - $ 675,336 Claims and changes in estimates 25,779 1,453,373 9,181 1,488,333 Claims payments (73,252) (1,519,252) (8,605) (1,601,109) Claim liability, June 30, 2023 $ 487,108 $ 74,876 $ 576 $ 562,560 14. 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, 2023: Governmental Business Type Total Deferred Outflows: Police Pension $ 654,004 $ - $ 654,004 Fire Pension 1,386,361 - 1,386,361 OkMRF 972,125 1,022,853 1,994,978 Total $ 3,012,490 $ 1,022,853 $ 4,035,343 Deferred Inflows: Police Pension $ 39,894 $ - $ 39,894 Fire Pension 303,978 - 303,978 OkMRF 414,009 457,569 871,578 Total $ 757,881 $ 457,569 $ 1,215,450 Net Pension Liability: Fire Pension $ 4,777,127 $ - $ 4,777,127 OkMRF 967,092 1,029,637 1,996,729 Total $ 5,744,219 $ 1,029,637 $ 6,773,856 Net Pension Asset: Police Pension $ 309,568 $ - $ 309,568 Total $ 309,568 $ - $ 309,568 57  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2023 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 07/01/22 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 58  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2023 d. Benefit Determination Base Final average salary - the average of the five highest consecutive annual salaries out of the last 10 calendar years of service e. Benefit Determination Methods: Normal Retirement -1.875% of final average salary multiplied by credited years of service Early Retirement -Actuarially reduced benefit based upon age, final average salary, and years of service at termination Disability Retirement -Same as normal retirement Death Benefit -50% of employees accrued 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 119 Deferred Vested Former Employees 18 Retirees or Retiree Beneficiaries 85 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, 2022. For the year ended June 30, 2023, the City recognized $797,256 of employer contributions to the plan which is in excess of the actuarially determined amount by $166,506 based on covered payroll of $6,012,867. Employees contribute 3.75% to the plan in accordance with the plan provisions adopted by the City Council. Employee contributions for fiscal 2023 were $248,250. Actuarial Assumptions Date of Last Actuarial Valuation July 1, 2022 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 59  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2023 d. Post Retirement cost-of-Living Increase None 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, 2022 are summarized in the following table: 60  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2023 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, 2022 which is also the measurement date. There were no changes in assumptions or changes in benefit terms that affected measurement of the total pension liability. There were also no changes between the measurement date of July 1, 2022 and the City’s report ending date of June 30, 2023, 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 $ 14,793,665 $ 14,689,248 $ 104,417 Changes for the Year: Service cost 389,967 - 389,967 Interest expense 1,071,795 - 1,071,795 Experience losses (gains) - (165,221) - (165,221) (amortized over avg remain svc period of actives & inactive) Changes of assumptions (350,120) - (350,120) Contributions--City - 703,506 (703,506) Contributions--members - 198,934 (198,934) Net investment income - (1,823,111) 1,823,111 Benefits paid (1,024,666) (1,024,666) - Plan administrative expenses - (25,220) 25,220 Benefit changes due to plan amendments - - - Change in deferred contributions made subsequent to the measurement date - - - Net Changes (78,245) (1,970,557) 1,892,312 Balances End of Year $ 14,715,420 $ 12,718,691 $ 1,996,729 61  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2023 Sensitivity of the net pension liability to changes in the discount rate. The following presents the net pension liability of the City, calculated using the discount rate of 7.50 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 $ 3,741,327 $ 1,996,729 $ 551,345 The City reported $1,996,729 in pension expense for the year ended June 30, 2023. At June 30, 2023, 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 $ - $ 545,482 Net difference between projected and actual earnings - 247,023 Changes in assumptions 1,099,412 - Changes in proportion and differences between City contributions and proportionate share of contributions 68,855 68,866 City contributions during measurement date 29,455 10,207 City contributions subsequent to the measurement date 797,256 - Total $ 1,994,978 $ 871,578 The $797,256 reported as deferred outflows of resources related to pensions resulting from City contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2024. 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: 2024 $ (118,061) 2025 (98,363) 2026 (24,732) 2027 567,300 2028 - $ 326,144 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 62  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2023 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 $177,580. The State of Oklahoma also made on- behalf contributions to FPRS in the amount of $417,506 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 $374,220. 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, 2023, the City reported a liability of $4,777,127 for its proportionate share of the net pension liability. The net pension liability was measured as of June 30, 2022, 63  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2023 and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of July 1, 2022. The City’s proportion of the net pension liability was based on the City’s contributions received by the pension plan relative to the total contributions received by pension plan for all participating employers as of June 30, 2022. Based upon this information, the City’s proportion was .3653%. For the year ended June 30, 2023, the City recognized pension expense of $565,164. At June 30, 2023, 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 $ 613,254 $ 24,116 Changes of assumptions - 30,458 Net difference between projected and actual earnings on pension plan investments 555,153 - Changes in proportion 34,059 248,724 Contributions during the measurement date 6,315 680 Contributions subsequent to the measurement date 177,580 - Total $ 1,386,361 $ 303,978 In the year ending June 30, 2023, $177,580 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: 2024 $ 192,576 2025 178,959 2026 42,949 2027 490,319 2028 - Total $ 904,803 Actuarial Assumptions- The total pension liability was determined by an actuarial valuation as of July 1, 2022, using the following actuarial assumptions, applied to all prior periods included in the measurement: Inflation: 2.75% Salary increases: 2.75% to 10.5% 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. 64  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2023 The actuarial assumptions used in the July 1, 2022, valuation were based on the results of an actuarial experience study for the period July 1, 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, 2022, are summarized in the following table: Target Long-Term Expected Asset Class Allocation Real Rate of Return Fixed income 20% 3.62% Domestic equity 47% 5.66% International equity 15% 8.34% Real estate 10% 7.64% Other assets 8% 5.08% Discount Rate- The discount rate used to measure the total pension liability was 7.5%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current contribution rate and that contributions from employers will be made at contractually required rates, determined by State statutes. Projected cash flows also assume the State of Oklahoma will continue contributing 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 $ 6,155,713 $ 4,777,127 $ 3,624,031 Pension plan fiduciary net position - Detailed information about the pension plan’s fiduciary net position is available in the separately issued financial report of the FPRS; which can be located at www.ok.gov/fprs. Oklahoma Police Pension – Statewide Cost Sharing Plan Plan description - The City of Miami, as the employer, participates in the Oklahoma Police Pension and Retirement Plan—a cost-sharing multiple-employer defined benefit pension plan administered by the Oklahoma Police Pension and Retirement System (OPPRS). Title 11 of the Oklahoma State Statutes, through the Oklahoma Legislature, grants the authority to establish and amend the benefit terms to the OPPRS. OPPRS issues a publicly available financial report that can be obtained at www.ok.gov/OPPRS 65  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2023 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 $180,888. The State of Oklahoma also made on- behalf contributions to OPPRS in the amount of $171,616 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 $153,826. 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, 2023, the City reported an asset of $309,568 for its proportionate share of the net pension asset. The net pension asset was measured as of June 30, 2022, and the total pension liability used to calculate the net pension asset was determined by an actuarial valuation as of July 1, 2022. The City’s proportion of the net pension asset was based on the City’s contributions received by the pension plan relative to the total contributions received by pension plan for all participating employers as of June 30, 2022. Based upon this information, the City’s proportion was .3860%. For the year ended June 30, 2023, the City recognized pension expense of $72,910. At June 30, 2023, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: 66  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2023 Deferred Outflows of Deferred Inflows of Resources Resources Differences between expected and actual experience $ 151,847 $ 33,720 Changes of assumptions 12,301 - Net difference between projected and actual earnings on pension plan investments 302,075 - Changes in proportion 5,099 4,677 Contributions during measurement date 1,794 1,497 Contributions subsequent to the measurement date 180,888 - Total $ 654,004 $ 39,894 In the year ending June 30, 2023, $180,888 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: 2024 $ 98,126 2025 26,553 2026 (82,379) 2027 370,454 2028 20,468 Total $ 433,222 Actuarial Assumptions-The total pension asset was determined by an actuarial valuation as of July 1, 2022, using the following actuarial assumptions, applied to all prior periods included in the measurement: Inflation: 2.75% Salary increases: 3.5% to 12% average, including inflation Investment rate of return: 7.5% net of pension plan investment expense Cost-of-living adjustments: Police officers eligible to receive increased benefits according to repealed Section 50-120 of Title 11 of the Oklahoma Statutes pursuant to a court order receive an adjustment of 1/3 to 1/2 of the increase or decrease of any adjustment to the base salary of a regular police officer, based on an increase in base salary of 3.5% (wage inflation). Mortality rates: Active employees (pre-retirement) RP-2000 Blue Collar Healthy Combined table with age set back 4 years with fully generational improvement using Scale AA. 67  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2023 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, 2022, 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, 2022, are summarized in the following table: Long-Term Expected Asset Class Real Rate of Return Fixed income 3.34% Domestic equity 4.69% International equity 8.34% Real estate 7.64% Private Equity 9.66% 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. 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: 68  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2023 1% Decrease Current Discount 1% Increase (6.5%) Rate (7.5%) (8.5%) Employers' net pension liability (asset) $ 896,909 $ (309,568) $ (1,329,336) 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, 2023, employees contributed $109,287 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, 2023. Separate audited financial statements are not available. 15. 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. 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 69  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2023 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, 2023, were $79,782. Employees Covered by Benefit Terms Active Employees 173 Inactive or beneficiaries receiving benefits 5 Total 178 Total OPEB Liability – The total OPEB liability was determined based on an alternative measurement method valuation performed as of June 30, 2022, which is also the measurement date. Actuarial Assumptions- The total OPEB liability in the June 30, 2022, valuation, was determined using the following actuarial assumptions:  Actuarial Cost Method - Entry Age  Discount Rate – 4.09% 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 5.01% 2035 4.97% 2040 4.81% 2045 4.70% 2050 4.64% 2060 4.54% Changes in Total OPEB Liability - Total OPEB Liability Balances at Beginning of Year $ 2,392,401 Changes for the Year: Service cost 177,611 Interest expense 51,676 Change of benefit terms - Change in assumptions (182,051) Difference between expected and actual experience (449,318) Benefits paid (79,782) Net Changes (481,864) Balances End of Year $ 1,910,537 70  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2023 OPEB Liabilities, OPEB Expense, and Deferred Outflows or Resources and Deferred Inflows of Resources Related to OPEB - For the year ended June 30, 2023, the City recognized OPEB expense of $82,341. At June 30, 2023, 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 $ - $ 729,130 Changes of assumptions - 847,592 Changes in proportion 353,145 350,550 City Contributions during measurement date 9,242 9,319 Benefits paid subsequent to the measurement date 40,387 - Total $ 402,774 $ 1,936,591 In the year ending June 30, 2023, $40,387 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: 2023 $ (337,663) 2024 (324,061) 2025 (283,041) 2026 (237,263) 2027 (173,489) Thereafter (218,687) $ (1,574,204) 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 ( 3.09%) (4.09%) 1% Increase (5.09%) Employers' total OPEB liability $ 2,126,293 $ 1,910,537 $ 1,719,862 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 (4.94% (5.94% decreasing to 1% Increase (6.94% decreasing to 2.94%) 3.94%) decreasing to 4.94%) Employers' total OPEB liability $ 1,697,017 $ 1,910,537 $ 2,162,612 71  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2023 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 2023, 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 2023. 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. 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, 2023, 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. 72  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2023 REQUIRED SUPPLEMENTARY INFORMATION 73  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2023 Budgetary Comparison Schedules (Budgetary Basis) – Year Ended June 30, 2023 GENERAL FUND Actual Variance with Budgeted Amounts Amounts Final Budget Original Final (Budget basis) Positive (Negative) Beginning Budgetary Fund Balance: $ 3,422,700 $ 3,448,492 $ 4,250,699 $ 802,207 Resources (Inflows): Taxes 7,837,400 7,837,400 9,240,746 1,403,346 Intergovernmental 220,000 222,727 229,485 6,758 Licenses and permits 43,700 43,700 137,212 93,512 Charges for services 219,255 222,355 198,694 (23,661) Fines and forfeitures 248,500 248,500 298,614 50,114 Investment income 8,700 8,700 17,808 9,108 M iscellaneous 18,500 131,487 182,478 50,991 Total Resources (Inflows) 8,596,055 8,714,869 10,305,037 1,590,168 Amounts available for appropriation 12,018,755 12,163,361 14,555,736 2,392,375 Charges to Appropriations (Outflows): General Government M uncipal Court 161,785 183,229 179,085 4,144 General Government 820,297 817,078 530,313 286,765 Human Resources 338,625 380,904 318,525 62,379 Legal 121,196 101,722 81,336 20,386 Public Safety Police 2,590,339 2,647,974 2,541,484 106,490 Fire 2,293,418 2,349,980 2,083,040 266,940 Emergency M anagement 51,537 92,776 76,755 16,021 Police Communications 704,718 660,045 602,075 57,970 Code Compliance 245,703 205,778 159,518 46,260 Risk M anagement 897,500 889,625 867,624 22,001 Public Works and Streets Streets 822,117 829,117 805,170 23,947 Cemetery 312,356 321,456 290,291 31,165 Facilities 315,140 331,553 302,950 28,603 Animal Control 239,817 243,817 171,132 72,685 Culture and Recreation Sports 275,025 259,558 220,814 38,744 Parks 588,910 579,403 502,945 76,458 Swimming Pool 215,705 239,505 180,026 59,479 Library 575,839 600,839 531,260 69,579 Total Charges to Appropriations 11,570,027 11,734,359 10,444,343 1,290,016 Other financing sources (uses) Transfers from other funds 8,082,192 8,148,306 9,183,656 1,035,350 Transfers to other funds (8,494,295) (8,572,487) (8,958,683) (386,196) Total other financing sources (uses) (412,103) (424,181) 224,973 649,154 Ending Budgetary Fund Balance $ 36,625 $ 4,821 $ 4,336,366 $ 4,331,545 74  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2023 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, 2022 Fund Balance June 30, 2023 Budget to GAAP Reconciliation: Fund Balance - GAAP Basis $4,663,990 $176,086 $4,840,076 Increases (Decreases): Revenues: Receivable from other governments and entities (940,806) (40,369) (981,175) Accounts receivable (184,664) (72,064) (256,728) State on behalf pension payments (529,958) (59,164) (589,122) Combining accounts (413,291) (53,534) (466,825) Expenditures: Accrued payroll 128,799 (6,590) 122,209 Other expenditures 649,941 428,868 1,078,809 State on behalf pension payments 529,958 59,164 589,122 Fund Balance - Budgetary Basis $3,529,969 $432,397 $4,336,366 75  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2023 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 2022 2023 City's proportion of the net pension liability 0.413176% 0.418954% 0.4143524% 0.4169184% 0.421250% 0.394823% 0.375765% 0.380507% 0.365300% 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 $ 2,505,890 $ 4,777,127 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 $ 1,236,103 $ 1,255,355 City's proprotionate share of the net pension liability as a percentage of its covered-employee payroll 449% 388% 437% 443% 392% 342% 384% 203% 381% 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% 68.12% 69.40% *The amounts present for each fiscal year were determined as of 6/30 Notes to Schedule: Only the previous nine 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 2022 2023 Statutorially required contribution $ 160,255 $ 162,264 $ 165,905 $ 169,204 $ 170,934 $ 168,865 $ 173,054 $ 175,750 $ 177,580 Contributions in relation to the statutorially required contribution 160,255 162,264 165,905 169,204 170,934 168,865 173,054 175,750 177,580 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 $ 1,255,355 $ 1,303,779 Contributions as a percentage of covered-employee payroll 14.00% 14.00% 14.00% 14.00% 14.00% 14.00% 14.00% 14.00% 14.00% Notes to Schedule: Only the previous nine 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, 2023 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 2022 2023 City's proportion of the net pension liability (asset) 0.4416% 0.3977% 0.4577% 0.3683% 0.4088% 0.3946% 0.3839% 0.3816% 0.3860% City's proportionate share of the net pension liability (asset) $ (148,685) $ 16,217 $ 700,954 $ 29,715 $ (194,728) $ (25,191) $ 440,848 $(1,830,509) $ (309,568) 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 $ 1,320,463 $ 1,378,435 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% 138.63% 22.46% 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% 117.07% 102.74% *The amounts present for each fiscal year were determined as of 6/30 Notes to Schedule: Only the previous nine 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 2022 2023 Statutorially required contribution $ 145,903 $ 156,178 $ 152,094 $ 162,102 $ 166,813 $ 167,131 $ 171,661 $ 179,197 $ 180,888 Contributions in relation to the statutorially required contribution 145,903 156,178 152,094 162,102 166,813 167,131 171,661 179,746 180,888 Contribution deficiency (excess) $ - $ - $ - $ - $ - $ - $ - $ (549) $ - 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 $ 1,378,435 $ 1,339,404 Contributions as a percentage of covered-employee payroll 12.89% 13.00% 13.00% 13.00% 13.00% 13.00% 13.00% 13.00% 13.00% Notes to Schedule: Only the previous nine fiscal years are presented because 10-year data is not yet available. 77  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2023 Oklahoma Municipal Retirement Fund Schedule of Changes in Net Pension Liability and Related Ratios 2015 2016 2017 2018 2019 2020 2021 2022 2023 Total pension liability Service cost $ 276,403 $ 308,701 $ 344,545 $ 330,866 $ 283,926 $ 346,075 $ 345,024 $ 390,061 $ 389,967 Interest 1,034,763 1,037,326 1,073,154 1,087,717 1,061,577 1,044,256 1,070,892 1,085,829 1,071,795 Changes of benefit terms - - - - - - - - - Differences between expected and actual experience - 102,207 (202,315) (535,480) (541,596) (272,005) (198,240) (643,221) (165,221) Changes of assumptions - - - 321,010 - 208,546 - - (350,120) 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) (1,015,092) (1,024,666) Net change in total pension liability 314,028 441,796 250,721 111,440 (272,102) 369,697 195,858 (182,423) (78,245) 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 14,976,088 14,793,665 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 $ 14,793,665 $ 14,715,420 Plan fiduciary net position Contributions - employer $ 569,542 $ 618,748 $ 640,172 $ 650,799 $ 635,453 $ 646,533 $ 657,276 $ 697,806 $ 703,506 Contributions - member 166,578 175,420 181,046 183,989 179,680 182,834 185,855 197,343 198,934 Net investment income 1,363,071 261,920 83,267 1,149,965 755,918 735,845 465,013 3,203,292 (1,823,111) 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) (1,015,092) (1,024,666) Administrative expense (20,151) (19,533) (18,698) (20,154) (21,162) (22,670) (23,361) (23,726) (25,220) Other - - - - - - - - - Net change in plan fiduciary net position 1,081,902 30,117 (78,876) 871,926 473,880 550,354 262,965 3,059,623 (1,970,557) 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 11,629,624 14,689,248 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 $ 14,689,247 $ 12,718,691 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 $ 104,418 $ 1,996,729 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% 99.29% 86.43% Covered employee payroll $ 4,356,987 $ 4,742,831 $ 4,657,554 $ 4,735,571 $ 4,920,014 $ 4,576,812 $ 5,258,704 $ 5,505,289 $ 5,284,267 Net pension liability as a percentage of covered- 100.06% 100.60% 109.51% 91.65% 73.05% 74.58% 63.64% 1.90% 37.79% employee payroll *The amounts present for each fiscal year were determined as of 6/30 Notes to Schedule: Only the previous nine fiscal years are presented because 10-year data is not yet available. Required Supplementary Information Oklahoma Municipal Retirement Fund Schedule of Employer Contributions 2015 2016 2017 2018 2019 2020 2021 2022 2023 Actuarially determined contribution $ 616,160 $ 643,059 $ 592,589 $ 590,967 $ 512,617 $ 518,316 $ 551,638 $ 577,505 $ 630,750 Contributions in relation to the actuarially 616,160 643,059 623,633 635,553 647,362 655,182 697,304 730,002 797,256 determined contribution Contribution deficiency (excess) $ - $ - $ (31,044) $ (44,586) $ (134,745) $ (136,866) $ (145,666) $ (152,497) $ (166,506) Covered employee payroll $ 4,661,027 $ 4,849,681 $ 4,703,091 $ 4,792,921 $ 4,882,062 $ 4,941,046 $ 5,258,704 $ 5,505,289 $ 6,012,867 Contributions as a percentage of covered-employee payroll 13.22% 13.26% 13.26% 13.26% 13.26% 13.26% 13.26% 13.26% 13.26% Notes to Schedule: 1. Only the previous nine fiscal years are presented because 10-year data is not yet available. 2. Latest Valuation Date: July 1, 2022 3. Actuarially determined contribution rate is calculated as of July 1, 2022 July 2022 through June 2032 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% 78  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2023 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 2022 2023 Total OPEB Liability Service cost $ 233,167 $ 206,592 $ 180,562 $ 182,138 $ 182,230 $ 177,611 Interest 91,262 125,031 120,692 96,946 54,855 51,676 Change of benefit terms - - - - 107,385 - Changes in assumptions (280,566) (378,465) (162,177) (237,748) (42,145) (182,051) Differences between expected and actual experience (17,115) (388,393) (237,298) (301,527) (449,318) Benefit payments (78,120) (103,265) (99,477) (91,824) (90,502) (79,782) Net change in total OPEB liability (34,257) (167,222) (348,793) (287,786) (89,704) (481,864) Balances at Beginning of Year 3,320,163 3,285,906 3,118,684 2,769,891 2,482,105 2,392,401 Balances End of Year $ 3,285,906 $ 3,118,684 $ 2,769,891 $ 2,482,105 $ 2,392,401 $ 1,910,537 Covered employee payroll $ 7,400,000 $ 7,310,000 $ 7,011,000 $ 7,564,000 $ 7,458,000 $ 7,735,000 Total OPEB liability as a percentage of covered- employee payroll 44.40% 42.66% 39.51% 32.81% 32.08% 24.70% Notes to Schedule: Only six fiscal years are presented because 10-year data is not yet available 79  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2023 OTHER SUPPLEMENTARY INFORMATION 80  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2023 Combining Balance Sheet – General Fund Accounts - June 30, 2023 Municipal Court Travel Information MCVB &Tourism Demolition Total General General Fund Account Center Account Account Account Fund ASSETS Cash and cash equivalents $ 3,550,476 $ 24,179 $ - $ 149,323 $ (3,574) $ 3,720,404 Investments - - - - - - Receivables: Accounts receivable 256,728 - - 66,725 35,957 359,410 Due from other funds 87,654 - - - - 87,654 Due from other accounts 15,599 - - - - 15,599 Receivable from other governments 981,175 - - 21,864 209,065 1,212,104 Other receivables - - 7,500 - - 7,500 Total assets $ 4,891,632 $ 24,179 $ 7,500 $ 237,912 $ 241,448 $ 5,402,671 LIABILITIES, DEFERRED INFLOWS AND FUND BALANCES Liabilities: Accounts payable and accrued liabilities $ 164,502 $ 8,385 $ (410) $ 17,898 $ - $ 190,375 Wages payable 122,209 - - 2,742 - 124,951 Due to other funds 81,494 - - - - 81,494 Due to other accounts - 15,599 - - - 15,599 Total liabilities 368,205 23,984 (410) 20,640 - 412,419 DEFERRED INFLOWS OF RESOURCES Unavailable revenue 150,176 - - - - 150,176 Fund balances: Assigned 3,550,779 - - - 241,448 3,792,227 Unassigned (deficit) 822,472 195 7,910 217,272 - 1,047,849 Total fund balances 4,373,251 195 7,910 217,272 241,448 4,840,076 Total liabilities, deferred inflows and fund balances $ 4,891,632 $ 24,179 $ 7,500 $ 237,912 $ 241,448 $ 5,402,671 81  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2023 Combining Schedule of Revenues, Expenditures, and Changes in Fund Balance – General Fund Accounts – Year Ended June 30, 2023 Travel MCVB & Municipal Information Tourism Demolition Total General General Fund Court Account Center Account Account Account Fund REVENUES Taxes $ 7,527,073 $ - $ - $ 218,827 $ - $ 7,745,900 Intergovernmental 801,384 - - 25,000 - 826,384 Charges for services 209,903 - - 18,020 199,428 427,351 Fines and forfeitures 293,547 - - - 33,369 326,916 Licenses and permits 153,383 - - - (16,033) 137,350 Investment income 17,807 - - - - 17,807 Miscellaneous 374,804 - - 171,478 - 546,282 Total revenues 9,377,901 - - 433,325 216,764 10,027,990 EXPENDITURES Current: General government 1,109,018 - - - 311,198 1,420,216 Public safety 6,820,018 - - - - 6,820,018 Public works and streets 1,565,931 - - - - 1,565,931 Culture and recreation 1,432,962 - - - - 1,432,962 Economic development 9,146 - - 546,448 - 555,594 Capital Outlay - - - - - - Debt Service: Principal 86,979 - - - - 86,979 Interest and fiscal charges 7,827 - - - - 7,827 Total expenditures 11,031,881 - - 546,448 311,198 11,889,527 Excess (deficiency) of revenues over expenditures (1,653,980) - - (113,123) (94,434) (1,861,537) OTHER FINANCING SOURCES (USES) Transfers in - interaccount - - - 214,791 - 214,791 Transfers out - interaccount (214,791) - - - - (214,791) Transfers in 10,735,215 - - - 50,000 10,785,215 Transfers out (8,743,892) - - (3,700) - (8,747,592) Total other financing sources and uses 1,776,532 - - 211,091 50,000 2,037,623 Net change in fund balances 122,552 - - 97,968 (44,434) 176,086 Fund balances - beginning 4,250,699 195 7,910 119,304 285,882 4,663,990 Fund balances - ending $ 4,373,251 $ 195 $ 7,910 $ 217,272 $ 241,448 $ 4,840,076 82  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2023 Combining Balance Sheet - Non-Major Governmental Funds - June 30, 2023 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 $ 85,392 $ 360,174 $ 75,766 $ 235,023 $ 1,802,403 $ 91,716 $ 137,182 Accounts receivable - - - - 3,625 - - Due from other governments - 11,867 - - - - - Due from other funds - 38,404 - - - - - Total assets $ 85,392 $ 410,445 $ 75,766 $ 235,023 $ 1,806,028 $ 91,716 $ 137,182 LIABILITIES, DEFERRED INFLOWS AND FUND BALANCES Liabilities: Accounts payable and accrued liabilities $ - $ 192,953 $ - $ 8,850 $ 8,089 $ - $ - Wages payable - - - 1,351 - - - Due to other funds - - - - - - - Total liabilities - 192,953 - 10,201 8,089 - - Deferred Inflows: Unavailable revenue - - - - - - - Fund balances: Restricted 85,392 - 75,766 224,822 1,797,939 91,716 137,182 Commited - 217,492 - - - - - Assigned - - - - - - - Total fund balances 85,392 217,492 75,766 224,822 1,797,939 91,716 137,182 Total liabilities, deferred inflows and fund balances $ 85,392 $ 410,445 $ 75,766 $ 235,023 $ 1,806,028 $ 91,716 $ 137,182 (continued) 83  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2023 Combining Balance Sheet - Non-Major Governmental Funds - June 30, 2023, Continued SPECIAL REVENUE DEBT SERVICE FUNDS FUND CAPITAL PROJECT FUNDS CAPITAL STREET AND PARK S&L RECOVERY G.O. BOND CEMETERY IMPROVEMENT STADIUM PROJECT POOL DEPARTMENT FUND SINKING FUND CARE FUND FUND IMPROVEMENT FUND PROJECTS TOTALS ASSETS Cash and cash equivalents $ 786,097 $ 198,370 $ 83,756 $ 861,009 $ 1,432,504 $ 71,201 $ 42,041 $ 6,262,634 Accounts receivable - - - 112,982 - - - 116,607 Due from other governments - 55,409 - - 197,646 - - 264,922 Due from other funds - - - 6,657 - - - 45,061 Total assets $ 786,097 $ 253,779 $ 83,756 $ 980,648 $ 1,630,150 $ 71,201 $ 42,041 $ 6,689,224 LIABILITIES, DEFERRED INFLOWS AND FUND BALANCES Liabilities: Accounts payable and accrued liabilities $ - $ - $ - $ 91,661 $ 6,875 $ - $ - $ 308,428 Wages payable - - - - - - - 1,351 Due to other funds - - - 38,404 - - - 38,404 Total liabilities - - - 130,065 6,875 - - 348,183 Deferred Inflows: Unavailable revenue 786,097 55,410 - - - - - 841,507 Fund balances: Restricted - 198,369 83,756 - 1,623,275 71,201 42,041 4,431,459 Commited - - - - - - - 217,492 Assigned - - - 850,583 - - - 850,583 Total fund balances - 198,369 83,756 850,583 1,623,275 71,201 42,041 5,499,534 Total liabilities, deferred inflows and fund balances $ 786,097 $ 253,779 $ 83,756 $ 980,648 $ 1,630,150 $ 71,201 $ 42,041 $ 6,689,224 84  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2023 Combining Statement of Revenues, Expenditures, and Changes in Fund Balance – Nonmajor Governmental Funds – Year Ended June 30, 2022 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 5,000 127,050 44,711 - 1,400,634 - 1,843 Charges for services - - - 54,296 - - - Investment income - - - - - - - Miscellaneous - - 5,575 - 17,065 - 5,000 Total revenues 5,000 127,050 50,286 54,296 1,417,699 - 6,843 EXPENDITURES Current: General government - - - - 15,613 - - Public safety - - - - 97,158 - 5,757 Public works - 626,317 - - 1,116 - - Culture and recreation 1,400 - - 49,749 50,390 - - Capital Outlay - - - 65,800 545,033 - - Debt Service Principal retirement - 50,274 - - - - - Interest and fiscal charges - 4,203 - - - - - Total Expenditures 1,400 680,794 - 115,549 709,310 - 5,757 Revenues over (under) expenditures 3,600 (553,744) 50,286 (61,253) 708,389 - 1,086 OTHER FINANCING SOURCES (USES) Debt proceeds - - - - - - - Transfers in - 500,000 - - - - - Transfers out - - - - - - - Total other financing sources (uses) - 500,000 - - - - - Net change in fund balances 3,600 (53,744) 50,286 (61,253) 708,389 - 1,086 Fund balances - beginning 81,792 271,236 25,480 286,075 1,089,550 91,716 136,096 Fund balances - ending $ 85,392 $ 217,492 $ 75,766 $ 224,822 $ 1,797,939 $ 91,716 $ 137,182 (continued) 85  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2023 Combining Statement of Revenues, Expenditures, and Changes in Fund Balance – Nonmajor Governmental Funds – Year Ended June 30, 2023, Continued SPECIAL DEBT SERVICE REVENUE FUNDS FUND CAPITAL PROJECT FUNDS CAPITAL STREET AND POOL PARK S&L RECOVERY G.O. BOND CEMETERY IMPROVEMENT STADIUM PROJECT IMPROVEMENT DEPARTMENT FUND SINKING FUND CARE FUND FUND FUND PROJECTS TOTALS REVENUES Taxes $ - $ 9,314 $ - $ 847,164 $ 1,561,051 $ - $ - $ 2,417,529 Intergovernmental 1,510,627 - - - - - - 3,089,865 Charges for services - - 9,431 - - 61,228 - 124,955 Investment earnings - - - 836 8,791 - - 9,627 Miscellaneous - - - 159,715 - - - 187,355 Total revenues 1,510,627 9,314 9,431 1,007,715 1,569,842 61,228 - 5,829,331 EXPENDITURES Current: General government - - - - - - - 15,613 Public safety - - - - - - - 102,915 Public works - - - - 371,895 - - 999,328 Culture and recreation - - - - - - - 101,539 Capital Outlay 1,510,627 - - 984,839 - - - 3,106,299 Debt Service Principal retirement - - - 76,433 475,000 - - 601,707 Interest and fiscal charges - - - 9,417 521,038 - - 534,658 Total Expenditures 1,510,627 - - 1,070,689 1,367,933 - - 5,462,059 Excess (deficiency) of revenues over expenditures - 9,314 9,431 (62,974) 201,909 61,228 - 367,272 OTHER FINANCING SOURCES (USES) Debt proceeds - - - 463,552 - - - 463,552 Transfers in - - - 77,012 - - - 577,012 Transfers out - - - (440,142) - - - (440,142) Total other financing sources and uses - - - 100,422 - - - 600,422 Net change in fund balances - 9,314 9,431 37,448 201,909 61,228 - 967,694 Fund balances - beginning - 189,055 74,325 813,135 1,421,366 9,973 42,041 4,531,840 Fund balances - ending $ - $ 198,369 $ 83,756 $ 850,583 $ 1,623,275 $ 71,201 $ 42,041 $ 5,499,534 86  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2023 Combining Schedule of Net Position – Special Utility Authority Accounts – June 30, 2023 Miami Special Utility Authority Accounts Utility Improvement Stormwater Rainy Day Public Utilities Account Account Account Total ASSETS Current assets: Cash and cash equivalents $ 6,416,175 $ 419,047 $ 593,599 $ 4,036,851 $ 11,465,672 Cash and cash equivalents, restricted 918,619 2,118,638 - - 3,037,257 Investments - - - 1,472,383 1,472,383 Accounts receivable, net 3,988,487 - - - 3,988,487 Leases receivables 18,582 - - - 18,582 Other receivable 436 - - - 436 Inventory 1,810,085 - - - 1,810,085 Due from other accounts 826,697 - - - 826,697 Due from other funds 45,244 - - - 45,244 Total current assets 14,024,325 2,537,685 593,599 5,509,234 22,664,843 Non-current assets: Cash and cash equivalents, restricted 1,195 - - - 1,195 Leases receivables 211,911 - - - 211,911 Capital assets: Land, construction in progress, and water rights 2,295,745 - - - 2,295,745 Other capital assets, net of accumulated depreciation 27,821,023 - - - 27,821,023 Total non-current assets 30,329,874 - - - 30,329,874 Total assets 44,354,199 2,537,685 593,599 5,509,234 52,994,717 DEFERRED OUTFLOW OF RESOURCES Deferred amounts related to pension 1,022,853 - - - 1,022,853 Deferred amounts related to OPEB 188,519 - - - 188,519 Deferred amounts related to GRDA settlement 99,788 - - - 99,788 Total deferred outflow of resources 1,311,160 - - - 1,311,160 LIABILITIES Current liabilities: Accounts payable and accrued liabilities 2,133,193 - - - 2,133,193 Wages payable 56,416 - - - 56,416 Due to other accounts - 515,367 311,330 - 826,697 Due to other funds 86,341 - - - 86,341 Accrued interest payable 19,695 84,468 - - 104,163 Accrued compensated absences 21,072 - 28 - 21,100 Unearned revenue 1,328,050 - - - 1,328,050 Refundable deposits 30,787 - - - 30,787 Revenue bond payable - 485,000 - - 485,000 Notes payable 1,701,292 - - - 1,701,292 Total current liabilities 5,376,846 1,084,835 311,358 - 6,773,039 Non-current liabilities: Accrued compensated absences 189,646 - 248 - 189,894 Net pension liability 1,029,637 - - - 1,029,637 Total OPEB liability 736,353 - - - 736,353 Refundable deposits 277,085 - - - 277,085 Revenue bond payable - 5,755,000 - - 5,755,000 Notes payable, net 4,417,719 - - - 4,417,719 Total non-current liabilities 6,650,440 5,755,000 248 - 12,405,688 Total liabilities 12,027,286 6,839,835 311,606 - 19,178,727 DEFERRED INFLOW OF RESOURCES Deferred amounts related to leases 230,511 - - - 230,511 Deferred amounts related to pensions 457,569 - - - 457,569 Deferred amounts related to OPEB 794,534 - - - 794,534 Total deferred inflow of resources 1,482,614 - - - 1,482,614 NET POSITION Net investment in capital assets 28,807,062 (4,651,129) - - 24,155,933 Restricted for debt service 352,074 452,620 - - 804,694 Unrestricted (deficit) 2,996,323 (103,641) 281,993 5,509,234 8,683,909 Total net position $ 32,155,459 $ (4,302,150) $ 281,993 $ 5,509,234 $ 33,644,536 87  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2023 Combining Schedule of Revenues, Expenses and Changes in Net Position – Special Utility Authority Accounts - Year Ended June 30, 2023 Miami Special Utility Authority Accounts Utility Improvement Stormwater Rainy Day Public Utilities Account Account Account Total REVENUES Charges for services $ 31,232,838 $ - $ - $ - $ 31,232,838 Fees, licenses and permits - - 132,968 - 132,968 Miscellaneous 923,410 - - - 923,410 Total operating revenues 32,156,248 - 132,968 - 32,289,216 OPERATING EXPENSES Personal services 3,885,994 - 43,803 - 3,929,797 Materials and supplies 17,430,824 - 26,366 - 17,457,190 Other services and charges 4,608,833 57,835 4,756 - 4,671,424 Depreciation expense 2,218,829 - - - 2,218,829 Total operating expenses 28,144,480 57,835 74,925 - 28,277,240 Operating income (loss) 4,011,768 (57,835) 58,043 - 4,011,976 NON-OPERATING REVENUES (EXPENSES) Investment income 12,748 59,698 - 6,385 78,831 Miscellaneous 275,814 - - 11,696 287,510 Interest expense and fiscal charges (83,261) (206,025) - - (289,286) Total non-operating revenue (expenses) 205,301 (146,327) - 18,081 77,055 Income (loss) before contrbutions and transfers 4,217,069 (204,162) 58,043 18,081 4,089,031 Contributed assets- governmental activities 727,652 - - - 727,652 Transfers in, interaccount - 691,609 - 372,232 1,063,841 Transfers out, interaccount (1,063,841) - - - (1,063,841) Transfers in 9,043,128 - - - 9,043,128 Transfers out (11,219,101) - - - (11,219,101) Change in net position 1,704,907 487,447 58,043 390,313 2,640,710 Total net position - beginning 30,450,552 (4,789,597) 223,950 5,118,921 31,003,826 Total net position - ending $ 32,155,459 $ (4,302,150) $ 281,993 $ 5,509,234 $ 33,644,536 88  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2023 Combining Schedule of Cash Flows – Special Utility Authority Accounts - Year Ended June 30, 2023 Miami Special Utility Authority Accounts Utility Improvement Stormwater Rainy Day Public Utilities Account Account Account Total CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers $ 33,195,303 $ - $ 132,968 $ 11,696 $ 33,339,967 Payments to suppliers (23,652,794) (70,904) (31,122) - (23,754,820) Payments to employees (4,394,926) - (50,134) - (4,445,060) Receipts from other funds - - 42,205 - 42,205 Payments to other funds (561,223) 515,367 - - (45,856) Receipts of customer meter deposits 128,511 - - - 128,511 Refunds of customer meter deposits (171,654) - - - (171,654) Net cash provided by operating activities 4,543,217 444,463 93,917 11,696 5,093,293 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Transfers from other funds 9,043,128 - - - 9,043,128 Transfers to other funds (11,219,101) - - - (11,219,101) Interaccount transfer in - 691,609 - 372,232 1,063,841 Interaccount transfer out (1,063,841) - - - (1,063,841) Net cash provided by (used in) noncapital financing activities (3,239,814) 691,609 - 372,232 (2,175,973) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Capital assets purchased (5,378,577) - - - (5,378,577) Principal paid on debt (1,251,618) (465,000) - - (1,716,618) Note proceeds 3,114,358 - - - 3,114,358 Interest and fiscal agent fees paid on debt (115,653) (213,775) - - (329,428) Net cash provided by (used in) capital and related financing activities (3,631,490) (678,775) - - (4,310,265) CASH FLOWS FROM INVESTING ACTIVITIES Interest and dividends 12,748 59,698 - 267 72,713 Net cash provided by investing activities 12,748 59,698 - 267 72,713 Net increase (decrease) in cash and cash equivalents (2,315,339) 516,995 93,917 384,195 (1,320,232) Balances - beginning of year 9,651,328 2,020,690 499,682 3,652,656 15,824,356 Balances - end of year $ 7,335,989 $ 2,537,685 $ 593,599 $ 4,036,851 $ 14,504,124 Reconciliation to Statement of Net Position: Cash and cash equivalents $ 6,416,175 $ 419,047 $ 593,599 $ 4,036,851 $ 11,465,672 Restricted cash and cash equivalents - current 918,619 2,118,638 - - 3,037,257 Restricted cash and cash equivalents - noncurrent 1,195 - - - 1,195 Total cash and cash equivalents, end of year $ 7,335,989 $ 2,537,685 $ 593,599 $ 4,036,851 $ 14,504,124 Reconciliation of operating income (loss) to net cash provided by (used in) operating activities: Operating income (loss) $ 4,011,768 $ (57,835) $ 58,043 $ - $ 4,011,976 Adjustments to reconcile operating income (loss) to net cash provided by operating activities: Depreciation expense 2,218,829 - - - 2,218,829 Other nonoperating revenue 275,814 - - 11,696 287,510 Change in assets, liabilities and deferrals: Receivables, net 1,060,038 - - - 1,060,038 Leases receivable 18,471 18,471 Due from other funds (561,223) - - - (561,223) Inventory (377,295) - - - (377,295) Deferred outflows related to pension (552,828) - - - (552,828) Deferred outflows related to OPEB (4,908) - - - (4,908) Accounts payable (1,235,842) (13,069) - - (1,248,911) Due to other funds - 515,367 42,205 - 557,572 Due to employees (22,788) - - - (22,788) Unarned revenue (315,268) - - - (315,268) Refundable deposits (43,143) - - - (43,143) Total OPEB liability (148,337) - - - (148,337) Net pension obligation 974,950 - - - 974,950 Accrued compensated absences 38,315 - (6,331) - 31,984 Deferred inflows related to OPEB 80,635 - - - 80,635 Deferred inflows related to leases (19,209) - - - (19,209) Deferred inflows related to pension (854,762) - - - (854,762) Net cash provided by operating activities $ 4,543,217 $ 444,463 $ 93,917 $ 11,696 $ 5,093,293 Noncash activities: Assets contributed by governmental activities $ 727,652 $ - $ - $ - $ 727,652 $ 727,652 $ - $ - $ - $ 727,652 89  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2023 Combining Statement of Net Position – Internal Service Funds – June 30, 2023 Internal Service Funds Worker's Health Compensation Unemployment Insurance Fund Fund Fund Total ASSETS Current assets: Cash and cash equivalents $ 1,738,200 $ 229,998 $ 567,686 $ 2,535,884 Investments 133,520 - - 133,520 Other receivable 440,179 - 260 440,439 Due from other funds 499,540 - - 499,540 Total current assets 2,811,439 229,998 567,946 3,609,383 Total assets 2,811,439 229,998 567,946 3,609,383 LIABILITIES Current liabilities: Accounts payable and accrued liabilities 3,440 - 5,717 9,157 Claims liability 487,108 576 74,876 562,560 Due to other funds - - 499,540 499,540 Total current liabilities 490,548 576 580,133 1,071,257 Total liabilities 490,548 576 580,133 1,071,257 NET POSITION Unrestricted (deficit) 2,320,891 229,422 (12,187) 2,538,126 Total net position $ 2,320,891 $ 229,422 $ (12,187) $ 2,538,126 90  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2023 Combining Statement of Revenues, Expenses and Changes in Net Position – Internal Service Funds - Year Ended June 30, 2023 Internal Service Funds Worker's Compensation Unemployment Health Insurance Fund Fund Fund Total REVENUES Charges for services $ 300,289 $ 22,967 $ 1,590,256 $ 1,913,512 Miscellaneous 16,754 - 178,151 194,905 Total operating revenues 317,043 22,967 1,768,407 2,108,417 OPERATING EXPENSES Other services and charges 21,639 - 445,264 466,903 Insurance claims and expense 25,779 9,181 1,453,353 1,488,313 Total operating expenses 47,418 9,181 1,898,617 1,955,216 Operating income (loss) 269,625 13,786 (130,210) 153,201 NON-OPERATING REVENUES Investment income 1,551 - - 1,551 Total non-operating revenue 1,551 - - 1,551 Income (loss) before transfers 271,176 13,786 (130,210) 154,752 Transfers out - - - - Change in net position 271,176 13,786 (130,210) 154,752 Total net position - beginning 2,049,715 215,636 118,023 2,383,374 Total net position - ending $ 2,320,891 $ 229,422 $ (12,187) $ 2,538,126 91  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2023 Combining Statement of Cash Flows – Internal Service Funds - Year Ended June 30, 2023 WORKER'S HEALTH COMPENSATION UNEMPLOYMENT INSURANCE FUND FUND FUND TOTALS CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers $ 363,336 $ 22,967 $ 1,841,769 $ 2,228,072 Payments to suppliers (30,072) - (447,467) (477,539) Payments to other funds - - 41,092 41,092 Payments from other funds (41,092) - - (41,092) Claims and benefits paid (73,252) (8,605) (1,519,252) (1,601,109) Net Cash Provided by (Used in) Operating Activities 218,920 14,362 (83,858) 149,424 CASH FLOWS FROM INVESTING ACTIVITIES Interest and dividends 1,551 - - 1,551 Sale (purchase) of investments (1,552) - - (1,552) Net Cash Provided by (Used in) Investing Activities (1) - - (1) Net Increase (Decrease) in Cash and Cash Equivalents 218,919 14,362 (83,858) 149,423 Balances - beginning of the year 1,519,281 215,636 651,544 2,386,461 Balances - end of the year $ 1,738,200 $ 229,998 $ 567,686 $ 2,535,884 Reconciliation to Statement of Net Position: Cash and cash equivalents $ 1,738,200 $ 229,998 $ 567,686 $ 2,535,884 Total cash and cash equivalents $ 1,738,200 $ 229,998 $ 567,686 $ 2,535,884 Reconciliation of operating income (loss) to net cash provided by (used in) operating activities: Operating income (loss) $ 269,625 $ 13,786 $ (130,210) $ 153,201 Change in assets and liabilities: Receivables, net 46,293 - 73,362 119,655 Due from other fund (41,092) (41,092) Accounts payable (8,433) - (2,203) (10,636) Due to other funds - - 41,092 41,092 Claims liability (47,473) 576 (65,899) (112,796) Net Cash Provided by (Used in) Operating Activities $ 218,920 $ 14,362 $ (83,858) $ 149,424 92  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2023 Combining Schedule of Cash Flows – Discretely Presented Component Units - Year Ended June 30, 2023 MCFA MDRA MIPFA Total CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers $ 102,870 $ 292,472 $ 29,835 $ 425,177 Payments to suppliers (62,753) (162,455) (13,599) (238,807) Payments to employees - (117,089) - (117,089) Net Cash Provided by Operating Activities 40,117 12,928 16,236 69,281 CASH FLOWS FROM INVESTING ACTIVITIES Purchase of investments (101,836) - - (101,836) Interest and dividends 1,687 202 4,723 6,612 Net Cash Provided by (Used in) Investing Activities (100,149) 202 4,723 (95,224) Net Increase (Decrease) in Cash and Cash Equivalents (60,032) 13,130 20,959 (25,943) Balances - beginning of the year 342,439 148,670 220,241 711,350 Balances - end of the year $ 282,407 $ 161,800 $ 241,200 $ 685,407 Reconciliation to Statement of Net Position: Cash and cash equivalents $ 282,407 $ 161,800 $ 241,200 $ 685,407 Total cash and cash equivalents $ 282,407 $ 161,800 $ 241,200 $ 685,407 Reconciliation of operating income (loss) to net cash provided by (used in) operating activities: Operating income (loss) $ (200,209) $ (123,403) $ (9,879) $ (333,491) Adjustments to reconcile operating income (loss) to net cash provided by operating activities: Depreciation expense 238,433 - 28,713 267,146 Other nonoperating revenue - 132,231 - 132,231 Change in assets, liabilities and deferrals: Other receivable - - (400) (400) Leases receivabe - - 7,508 7,508 Accounts payables 1,893 3,868 (207) 5,554 Deferred inflows related to leases - - (9,499) (9,499) Accrued compensated absences - 232 - 232 Net Cash Provided by Operating Activities $ 40,117 $ 12,928 $ 16,236 $ 69,281 93  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2023 THIS PAGE INTENTIONALLY LEFT BLANK 94