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					                 OklahOma city

      Department of
     Transit Services
                  Oklahoma City, Oklahoma
Annual Financial Report For The Fiscal Year Ended June 30, 2007




                                                                   Photo used by permission
                                                                  from Metropolitan Library
             THE OKLAHOMA CITY
               DEPARTMENT OF
              TRANSIT SERVICES
                Central Oklahoma Transportation
                     and Parking Authority

                       A Component Unit of
                     Oklahoma City, Oklahoma

                           Board of Trustees
                         Chris Kauffman, Chairman
                       Richard E. Lee, Vice Chairman
                               Kay Bickham
                          Bernard L. Semtner, III
                              Veran C. Randle
                               Mick Cornett
                              James D. Couch
                             Laura A. Johnson

                           Richard Cain, Director

                       Mayor and City Council
                            Mick Cornett, Mayor

                                  Gary Marrs
                                Sam Bowman
                                Larry McAtee
                                  Pete White
                               J. Brian Walters
                                 Ann Simank
                               Patrick J. Ryan

                       James D. Couch, City Manager

Annual Financial Report for the Fiscal Year Ended June 30, 2007
 Prepared by The Oklahoma City Finance Department, Accounting Services Division
                           Glen D. Earley, Controller
                              OKLAHOMA CITY DEPARTMENT OF TRANSIT SERVICES

                                              TABLE OF CONTENTS
                                           For the Year Ended June 30, 2007



                                                                                      PAGE

Table of Contents                                                                       i

Transmittal Letter                                                                     ii

Report of Independent Certified Public Accountants                                      1

Management’s Discussion and Analysis                                                    2

Basic Financial Statements:

    Department-wide Financial Statements:
    Statements of Net Assets                                                            8
    Statements of Revenues, Expenses, and Changes in Net Assets                         9
    Statements of Cash Flows                                                           10

    Fund Financial Statements:
    Combining Transportation and Parking Divisions
       Combining Statements of Net Assets                                              11
       Combining Statements of Revenues, Expenses, and Changes in Net Assets           13
       Combining Statements of Cash Flows                                              15

    COTPA Retirement Trust
       Statement of Plan Net Assets                                                    17
       Statement of Changes in Plan Net Assets                                         18

    Notes to Financial Statements                                                      19

Required Supplementary Information:
   Central Oklahoma Transportation and Parking Authority Employee Retirement Trust:
        Schedule of Funding Progress                                                   33
        Schedule of Employer Contributions                                             33
        Notes to Required Supplementary Information                                    33

Report of Independent Certified Public Accountants on Internal Control Over            34
   Financial Reporting and on Compliance and Other Matters Based on an
   Audit of Financial Statements Performed in Accordance with Government
   Auditing Standards




                                                           i
MANAGEMENT'S DISCUSSION AND ANALYSIS                                                            OKLAHOMA CITY
June 30, 2007                                                                    DEPARTMENT OF TRANSIT SERVICES

                              MANAGEMENT’S DISCUSSION AND ANALYSIS
Within this section of the Oklahoma City Department of Transit Services (Department) annual financial report, the
Department’s management provides narrative discussion and analysis of the financial activities of the Department for the
fiscal year ended June 30, 2007. The Department's financial performance is discussed and analyzed within the context of the
accompanying financial statements and disclosure following this section. Additional information is available in the transmittal
letter which precedes Management’s Discussion and Analysis (MD&A). The Oklahoma City Department of Transit Services
consists of the Central Oklahoma Transportation and Parking Authority (Authority) and the Transportation and Parking
Enterprise Funds of the City of Oklahoma City (City). The Authority is a component unit of the City.

Financial Summary

•   Department assets exceeded liabilities by $34,789,959 (net assets) for the fiscal year reported. This compares to the
    previous year when assets exceeded liabilities by $32,980,618.

•   Total liabilities for the Department decreased by $3,042,187 to $59,812,814 during the fiscal year. See the later
    discussion of Long-term debt.

•   Total net assets are comprised of the following:
    (1) Capital assets, net of related debt, in the amount of $33,662,516 include property and equipment, net of accumulated
        depreciation, and reduced for outstanding debt related to the purchase or construction of capital assets.
    (2) Unrestricted net assets are $1,127,443.

Overview of the Financial Statements

Management’s Discussion and Analysis introduces the Department's basic financial statements. The basic financial statements
include: (1) department-wide financial statements, (2) fund financial statements combined by division, (3) fiduciary financial
statements for the Central Oklahoma Transportation and Parking Authority Employee Retirement Trust (COTPA Retirement),
and (4) notes to the financial statements. The Department also includes in this report additional information to supplement the
basic financial statements.

Department-wide Financial Statements

The first of these statements is the Statement of Net Assets. This is the statement of position presenting information that
includes all of the Department's assets and liabilities, with the difference reported as net assets. Increases or decreases in net
assets may serve as a useful indicator of whether the financial position of the Department as a whole is improving or
deteriorating.
The second statement is the Statement of Revenues, Expenses, and Changes in Net Assets which reports how the Department's
net assets changed during the current fiscal year. All current year revenues and expenses are included regardless of when cash
is received or paid.
The Statement of Cash Flows reports the inflows and outflows of Department cash and cash equivalents.

Fund Financial Statements

A fund is an accountability unit used to maintain control over resources segregated for specific activities or objectives. The
Department uses funds to ensure and demonstrate compliance with finance-related laws and regulations primarily pertaining to
ground and river transportation and parking services.
The fund financial statements report services for which the Department charges customers a fee. Services are provided to
customers external to the Department including public transportation and parking.
Fund statements provide both long-term and short-term financial information consistent with the focus provided by the
department-wide financial statements, but with more detail.
The Central Oklahoma Transportation and Parking Employee Retirement Trust (COTPA Retirement) is a fiduciary component
unit of the Department. COTPA Retirement reports pension resources that are not available to fund Department programs.
COTPA Retirement reporting includes both short and long-term assets and liabilities and all current year revenues and
expenses regardless of when cash is received or paid.
                                                                2
MANAGEMENT'S DISCUSSION AND ANALYSIS                                                                            OKLAHOMA CITY
June 30, 2007                                                                                    DEPARTMENT OF TRANSIT SERVICES

Financial Analysis

The Department's net assets at fiscal year-end are $34,789,959. This is an increase of $1,809,341 over last year’s net assets of
$32,980,618. In fiscal year 2007, a new division of the Authority, Oklahoma River Cruises (River Cruises) was established to
operate watercraft (cruisers) along the Oklahoma River and is separately identified in the financial statements. See Note I. B. 3.
for further discussion of the River Cruises Division. Overall the Department's financial position improved during fiscal years
2007 and 2006. The following table provides a summary of net assets:

                                                               Summary of Net Assets

                                        Transportation                                 River Cruises                                    Parking
                                          Activities                                    Activities                                     Activities
                                 2007                2006                    2007                      2006                 2007                     2006

Current and other assets       $4,307,145        $3,475,714              $687,601                        $-          $16,181,662                $16,745,251
Capital assets                 23,748,917        26,100,872              1,091,210                        -           48,586,238                 49,513,782
  Total assets                 28,056,062        29,576,586              1,778,811                        -           64,767,900                 66,259,033

Long-term liabilities             395,864           292,343                900,000                        -             50,967,461                53,479,098
Other liabilities               1,412,046         1,716,140                170,960                        -              5,966,483                 7,367,420
  Total liabilities             1,807,910         2,008,483              1,070,960                        -             56,933,944                60,846,518

Net assets:
Invested in capital assets,
 net of related debt           23,748,917        26,100,872                  191,210                      -             9,722,389                 10,133,741
Restricted                              -                 -                        -                      -                     -                       9,356
Unrestricted                    2,499,235         1,467,231                  516,641                      -           (1,888,433)                 (4,730,582)

  Total net assets            $26,248,152       $27,568,103               $707,851                       $-             $7,833,956                $5,412,515

                                                            Totals                                                             Totals
                                                                           2007-2006                                                     2006-2005
                                                                            Change                                                        Change
                                 2007               2006               Amount      Percent                       2005                Amount      Percent

Current and other assets      $21,176,408       $20,220,965            $955,443            4.7%               $27,025,157          ($6,804,192)       (25.2%)
Capital assets                 73,426,365        75,614,654          (2,188,289)          (2.9)                68,992,396            6,622,258          9.6
  Total assets                 94,602,773        95,835,619          (1,232,846)          (1.3)                96,017,553             (181,934)        (0.2)

Long-term liabilities          52,263,325        53,771,441          (1,508,116)         (2.8)                 57,077,252           (3,305,811)       (5.8)
Other liabilities               7,549,489         9,083,560          (1,534,071)        (16.9)                  7,489,943            1,593,617        21.3
  Total liabilities            59,812,814        62,855,001          (3,042,187)         (4.8)                 64,567,195           (1,712,194)       (2.7)

Net assets:
Invested in capital assets,
 net of related debt           33,662,516        36,234,613          (2,572,097)         (7.1)                 36,379,422            (144,809)        (0.4)
Restricted                              -             9,356              (9,356)       (100.0)                           -              9,356        100.0
Unrestricted                    1,127,443        (3,263,351)          4,390,794         134.5                   (4,929,064)         1,665,713         33.8

  Total net assets            $34,789,959       $32,980,618          1,809,341            5.5                 $31,450,358          $1,530,260          4.9

During fiscal year 2007, total liabilities decreased by $3,042,187 and total assets decreased by $1,232,846 resulting in an increase
in net assets of $1,809,341. The decrease in liabilities was due to a decrease in accounts payable of $1,019,406, primarily
resulting from a decrease in construction retainages payable due to completion of a new parking garage in July 2006, a decrease
in revenue bonds payable of $2,725,000, from normal debt service payments, and a decrease in other liabilities of $197,781 which
was offset by an increase in borrowings of $900,000 by the River Cruises Division from the Oklahoma City Municipal Facilities
Authority Services fund. The decrease in total assets was primarily due to a reduction in net capital assets of $2,188,289 resulting
from depreciation exceeding additions in fiscal year 2007. The decrease in capital assets was offset by moderate increases in
current assets.




                                                                         3
MANAGEMENT'S DISCUSSION AND ANALYSIS                                                                          OKLAHOMA CITY
June 30, 2007                                                                                  DEPARTMENT OF TRANSIT SERVICES

The following table provides a summary of the Department's changes in net assets:

                                                       Summary of Changes in Net Assets

                                         Transportation                             River Cruises                                   Parking
                                           Activities                                Activities                                    Activities
                                2007                  2006                   2007                   2006                 2007                   2006

Operating revenues:
Program revenues:
  Charges for services     $2,169,493          $2,112,915                      $-                    $-          $8,310,750              $7,832,294
Non-operating revenues:
  Payments from
    the City of
    Oklahoma City           8,630,365           8,184,405                52,400                       -             103,940                       -
  Grants income             9,701,418          10,923,055               655,160                       -                   -                       -
  Investment income           121,826              67,674                   415                       -             602,124                 713,698
Total revenues             20,623,102          21,288,049               707,975                       -          $9,016,814               8,545,992

Expenses:
  Transportation           21,943,053          21,598,780                       -                     -                   -                       -
  River Cruises                     -                   -                     124                     -                   -                       -
  Parking                           -                   -                       -                     -           6,595,373               6,705,001
Total expenses             21,943,053          21,598,780                     124                     -           6,595,373               6,705,001

Change in net assets       (1,319,951)          (310,731)               707,851                       -           2,421,441               1,840,991
Beginning net assets       27,568,103          27,878,834                     -                       -           5,412,515               3,571,524
Ending net assets         $26,248,152         $27,568,103              $707,851                      $-          $7,833,956              $5,412,515

                                                             Totals                                                         Totals
                                                                           2007-2006                                                 2006-2005
                                                                            Change                                                    Change
                                2007                 2006              Amount      Percent                    2005               Amount      Percent
Operating revenues:
Program revenues:
  Charges for services      $10,480,243           $9,945,209           $535,034        5.4%                 $9,133,102           $812,107          8.9%
Non-operating revenues:
  Payments from
    the City of
    Oklahoma City             8,786,705            8,184,405             602,300        7.4                  7,035,260           1,149,145         16.3
  Grants income              10,356,578           10,923,055            (566,477)      (5.2)                 8,276,221           2,646,834         32.0
  Investment income             724,365              781,372             (57,007)      (7.3)                   603,634             177,738         29.4
Total revenues               30,347,891           29,834,041             513,850        1.7                 25,048,217           4,785,824         19.1

Expenses:
  Transportation            $21,943,053           21,598,780             344,273       1.6                  19,064,850           2,533,930         13.3
  River Cruises                     124                    -                 124     100.0                           -                   -            -
  Parking                     6,595,373            6,705,001            (109,628)     (1.6)                  5,831,910             873,091         15.0
Total expenses               28,538,550           28,303,781             234,769       0.8                  24,896,760           3,407,021         13.7

Change in net assets          1,809,341            1,530,260             279,081      18.2                     151,457           1,378,803        910.4
Beginning net assets         32,980,618           31,450,358           1,530,260       4.9                  31,298,901             151,457           .5
Ending net assets           $34,789,959          $32,980,618          $1,809,341       5.5                 $31,450,358          $1,530,260          4.9

The Department receives substantial Federal Transportation Administration (FTA) grants and is dependent on continuing grant
availability to provide consistent, reliable ground transportation services to the public with its fleet of buses, trolleys, and other
public transportation vehicles. In fiscal year 2006, the Department received increased operating grants, grant support for an
800 mhz trunked radio communication system, and fare box grants resulting in improved grant income when compared to
fiscal year 2005. With the improving economy in 2006, investment income also increased. Historically, the City provides
significant resources to the Department through City subsidies. In fiscal year 2006, City subsidies were $8,184,405, an
increase of $1,149,145, over fiscal year 2005. The operating subsidy increased by $774,413 primarily due to the City funding
higher fuel costs, and the capital subsidy increased by $374,732 largely due to capital projects relating to new bus fare boxes
and refurbishing the trolleys. Higher fuel costs and bus repair costs, increased employee health care premiums, costs of living
increases and participating in the City-wide 800 mhz radio system contributed to increased expenses in fiscal year 2006.




                                                                         4
MANAGEMENT'S DISCUSSION AND ANALYSIS                                                                      OKLAHOMA CITY
June 30, 2007                                                                              DEPARTMENT OF TRANSIT SERVICES

The change in net assets increased by $279,081 in fiscal year 2007 over 2006. This was primarily due to an increase in
parking program revenue of $487,456, largely the result of the opening of a new parking facility in July 2006, and increased
subsidies from the City of $602,300 to $8,786,705 in fiscal year 2007. Grant revenue decreased by $1,221,637 in the
Transportation Division from the prior year, due to the completion in fiscal year 2006, of the 800 mhz radio system and the
new bus fare box project. This decrease in grant revenue was offset by new grant revenues of $655,160 to fund the new River
Cruises Division construction of watercraft. Increased revenues were offset by expenses of $234,769 in fiscal year 2007,
primarily due to increased employee health care premiums, fuel and bus maintenance costs.

Capital Assets and Debt Administration

Capital Assets

The Department’s investment in capital assets, net of accumulated depreciation, as of June 30, 2007, was $73,426,365. This
was a decrease of 2.9% in this investment compared to an increase of 9.6% in 2006.

The following table provides a summary of capital assets:

                                                           Capital Assets
                                                 Net of Accumulated Depreciation
                                     Transportation                                River Cruises                                    Parking
                                        Activities                                  Activities                                     Activities
                                2007               2006                 2007                       2006              2007                       2006

Non-Depreciable Assets:
Land                        $2,270,827        $2,270,827                    $-                       $-         $1,630,620               $1,630,620
Construction in progress        17,591                 -             1,091,210                        -                  -               10,642,249

Depreciable Assets:
  Buildings                 8,863,747          9,036,352                       -                      -                     -                          -
  Improvements other than
   buildings                1,026,966          1,099,738                       -                      -             939,386               1,014,556
  Buses and automobiles     9,678,201         11,703,251                       -                      -              11,108                  14,474
  Parking garages and
   surface lots                     -                  -                     -                        -        45,948,564                36,133,674
  Other assets              1,891,585          1,990,704                _    -                        -            56,560                    78,209
Total                     $23,748,917        $26,100,872            $1,091,210                       $-       $48,586,238               $49,513,782


                                                           Totals                                                           Totals
                                                                          2007-2006                                                  2006-2005
                                                                           Change                                                     Change
                                 2007              2006               Amount        Percent                  2005                Amount      Percent
Non-Depreciable Assets:
Land                          $3,901,447         $3,901,447                  $-            -%              $3,901,447                   $-              -%
Construction in progress       1,108,801         10,642,249          (9,533,448)       (89.6)               1,895,728            8,746,521         461.4

Depreciable Assets:
  Buildings                    8,863,747          9,036,352           (172,605)         (1.9)               9,242,128             (205,776)            (2.2)
  Improvements other than
   buildings                   1,966,352          2,114,294            (147,942)        (7.0)               2,224,520             (110,226)         (5.0)
  Buses and automobiles        9,689,309         11,717,725          (2,028,416)       (17.3)              13,865,395           (2,147,670)        (15.5)
  Parking garages and
   surface lots               45,948,564        36,133,674            9,814,890         27.2               37,140,222           (1,006,548)         (2.7)
  Other assets                 1,948,145         2,068,913             (120,768)        (5.8)                 722,956            1,345,957         186.2
Total                        $73,426,365       $75,614,654          ($2,188,289)        (2.9)             $68,992,396           $6,622,258           9.6

The reduction of capital assets in 2007 was due to depreciation exceeding capital additions. Substantial capital investment
during 2006 and 2005 included construction of a parking garage completed in July 2006.




                                                                        5
MANAGEMENT'S DISCUSSION AND ANALYSIS                                                            OKLAHOMA CITY
June 30, 2007                                                                    DEPARTMENT OF TRANSIT SERVICES

In April 2005, Phase I of the new $23.3 million City Center (formerly called Galleria) parking garage was completed and
opened to the public. Phase II, a separate garage joined by two bridges to the Phase I garage, opened in July, 2006. The two
new parking garages contain approximately 1,900 parking spaces for an overall increase of approximately 1,000 parking
spaces to the City Center parking complex.

On March 9, 2007, the COTPA Board of Trustees approved a contract with Scarano Boatbuilding, Inc. for the construction of
two watercraft with an option for a third watercraft for the Oklahoma River Mobility System. The construction cost of each
watercraft is $969,475 with delivery of the first watercraft in October, 2007.

On June 8, 2007, the COTPA Board of Trustees approved a resolution ratifying the COTPA’s administrator’s earlier action
authorizing the purchase of a third watercraft for the Oklahoma River Transport Mobility System from Scarano Boatbuilding,
Inc. at a cost of $969,475. The original contract provided for an option of a third watercraft which could be constructed at the
same price as the first two watercraft if an order was received by Scarano Boatbuilding, Inc, by June 1, 2007.

See Note II. A. 3. for a summary of the changes in capital assets.

Long-term debt

At the end of the 2007 fiscal year, the Department had total bonded debt outstanding of $50,810,000. This debt is primarily
supported by pledged revenues generated by the parking activities of the Department (revenue bonds). Outstanding bonds
were reduced by the regular debt service payment in both 2007 and 2006. In fiscal year 2006, the Authority refunded Parking
System Revenue and Refunding Bonds, Series 1996. See Note II. B. 3. for additional information regarding revenue bonds.

Bond Ratings

The Department’s bonds are issued through the Central Oklahoma Transportation and Parking Authority. Authority bonds are
insured and rated Aaa with an underlying rating of A2 and A3 with Moody’s rating agency. These ratings are disclosed on the
face of the final official statement for the bonds. Bond ratings have not changed since issuance.

                                                          Outstanding Bonds

                                                        2007-2006     2007-2006                     2006-2005      2006-2005
                                                         Amount          %                           Amount            %
                          2007             2006          Change        Change         2005           Change          Change

Revenue bonds
  Parking            $50,810,000      $53,535,000      ($2,725,000)     (5.1%)    $57,515,000       ($3,980,000)     (6.9)%

See Note II. B. 3. and II. B. 4. for additional information about the Department’s revenue bonds.

Economic Environment and Next Year's Rates

Oklahoma City Economy

Oklahoma City serves as an important source of economic stimulus for the surrounding region as well as benefiting from the
area. Last year, Forbes Magazine ranked Oklahoma City as the 13th best metropolitan area for business and career starts in the
country based on low cost of doing business, job growth, and educational attainment of the population.

Within Oklahoma County the number of jobs was expected to increase by 8,300, or 2 percent for calendar year 2006. The
unemployment rate was expected to be 4.1% for 2006 compared to 4.6% in 2005 and personal income growth increased by
approximately 4.6% in calendar year 2005 and was expected to show an increase of approximately 8.5% in calendar year
2006. A review of these and related local economic indicators reflect that per capita income was continuing a steady, although
moderate, rise and the unemployment rate was showing improvement while the population and number of jobs were gradually
increasing. Highlighting the favorable economic strength of Oklahoma County was its posting of the 8th fastest income
growth among the 326 largest U.S. Counties from the first calendar quarter of 2005 to the first calendar quarter of 2006.


                                                               6
MANAGEMENT'S DISCUSSION AND ANALYSIS                                                            OKLAHOMA CITY
June 30, 2007                                                                    DEPARTMENT OF TRANSIT SERVICES

The economic activity in the City and surrounding region is fueled primarily from the oil and gas industry, the success of
Bricktown and the downtown redevelopment, significant investments in the bioscience industry, and job growth in the
professional, scientific, and technical services sector as well as the local accommodations and fast food service sector.

The oil and gas industry accounts for 15% of the total labor income for the county and gains made in this sector have been
perhaps the largest influence on the economy since 2002. This sector has added 2,000 wage and salary workers since 2005
and has essentially doubled in size in the past five years.

The Oklahoma County construction sector job growth has outperformed the State and the Nation much of which is attributed
to the continuing success of Bricktown and the downtown redevelopment. Oklahoma City’s Metropolitan Area Projects
(MAPS) program approved by voters in 1993 provided significant funding for this growth.

The health care sector expanded by nearly 2,000 jobs in 2006 as the bioscience industry in Oklahoma City continues to
develop. The Wall Street Journal recognized Oklahoma City as one of 20 “Up & Comers” on its list of the most inventive
towns in America, citing the work of the Oklahoma Medical Research Foundation.

Job growth in the professional, scientific, and technical services sector, as well as the local accommodations and fast food
service sector, expanded in 2006 and more recent reports indicate further expansion in these sectors. Dell Computers located a
new facility in Oklahoma City in 2005 and is expected to employ 3,000 people when fully staffed. In 2007, the Skirvin Hilton
Hotel opened adding 225 hotel rooms downtown.

Strong income and job gains have resulted in increasing retail sales activity, a strong factor in economic vitality of the county.
Oklahoma County generates nearly 30% of the total taxable retail sales in the State. The State, Oklahoma County, and the
City each are on pace to produce the highest annual growth in retail sales since the oil bust.

Other factors significantly affecting Oklahoma City’s economic strength is its central location at the intersection of Interstate
highways I-35 and I-40, a regional transportation hub at Will Rogers World Airport, ample water supplies, and numerous
performing arts, entertainment, and recreational facilities.

The source for economic data is the Oklahoma State University Center for Applied Economic Research.

Parking Rate Increases

On June 3, 2005, the Authority's Board of Trustees (Board) approved price increases for the parking system. Effective July 1,
2005, rates increased from 1% for the Century Center garage to 7% and 8% for the rest of the garages in the parking system.
These rate increases affected only the monthly contract parkers. Parking rates have not been adjusted since July 1, 2005.

Contacting the Department's Financial Management

This financial report is designed to provide a general overview of the Department's finances, comply with finance-related laws
and regulations, and demonstrate commitment to public accountability. If you have questions about this report or would like
to request additional information, contact the City’s Finance Department, Accounting Services Division, at 100 North Walker,
Suite 300, Oklahoma City, Oklahoma 73102.




                                                                7
 STATEMENTS OF NET ASSETS                                                                                                                            OKLAHOMA CITY
 June 30,                                                                                                                             DEPARTMENT OF TRANSIT SERVICES
                                                                                                                                            2007               2006
 ASSETS
 Current assets:
   Pooled cash and cash equivalents------------------------------------------------------------------------------------------                      $153,652       $155,366
   Non-pooled cash--------------------------------------------------------------------------------------------------------------                   3,250,893      1,912,188
   Investments, current----------------------------------------------------------------------------------------------------------                  9,177,161      8,327,241
   Accounts receivable, net-----------------------------------------------------------------------------------------------------                     642,091        301,928
   Interest receivable------------------------------------------------------------------------------------------------------------                    53,906         55,252
   Intergovernmental receivables----------------------------------------------------------------------------------------------                     1,258,829      1,447,398
   Receivables from the City of Oklahoma City:
     General Fund---------------------------------------------------------------------------------------------------------------                      740                 -
     Fleet Services Fund--------------------------------------------------------------------------------------------------------                    1,927             1,898
     Grants Management Fund------------------------------------------------------------------------------------------------                        20,707                 -
     Water Utilities Fund-------------------------------------------------------------------------------------------------------                      577                 -
     Other Funds-----------------------------------------------------------------------------------------------------------------                     143             2,129
   Receivable from the Oklahoma City Municipal Facilities Authority--------------------------------------------------                                 476                 -
   Inventories---------------------------------------------------------------------------------------------------------------------               641,863           418,237
   Prepaid pension benefit------------------------------------------------------------------------------------------------------                   37,488                 -
     Total current assets----------------------------------------------------------------------------------------------------------            15,240,453        12,621,637
 Non-current assets:
   Investments, non-current------------------------------------------------------------------------------------------------------                  5,302,055      6,876,655
   Deferred debt expense, net------------------------------------------------------------------------------------------------------                  633,900        722,673
   Capital assets:
     Land and construction in progress---------------------------------------------------------------------------------------                      5,010,248     14,543,696
     Other capital assets, net of
       accumulated depreciation-----------------------------------------------------------------------------------------------                 68,416,117        61,070,958
     Total capital assets, net of
       accumulated depreciation-----------------------------------------------------------------------------------------------                 73,426,365        75,614,654
     Total non-current assets---------------------------------------------------------------------------------------------------               79,362,320        83,213,982
        Total assets--------------------------------------------------------------------------------------------------------------             94,602,773        95,835,619
 LIABILITIES
 Current liabilities:
   Accounts payable-------------------------------------------------------------------------------------------------------------                   3,407,846      4,427,252
   Wages and benefits payable--------------------------------------------------------------------------------------------------                      284,470        267,329
   Net pension obligation-------------------------------------------------------------------------------------------------------                           -         11,603
   Payables to the City of Oklahoma City:
     General Fund---------------------------------------------------------------------------------------------------------------                      18,477          4,155
     Fleet Services Fund-------------------------------------------------------------------------------------------------------                        4,801              -
     Print Shop Fund------------------------------------------------------------------------------------------------------------                       1,122          1,308
   Payable to the Oklahoma City Municipal Facilities Authority---------------------------------------------------------                                2,217        213,052
   Payable to the Oklahoma City Water Utilities Trust---------------------------------------------------------------------                           124,161        124,588
   Intergovernmental payable, current----------------------------------------------------------------------------------------                              -        109,590
   Compensated absences, current---------------------------------------------------------------------------------------------                        222,182        228,486
   Deferred revenue--------------------------------------------------------------------------------------------------------------                     24,028         36,222
   Bond interest payable--------------------------------------------------------------------------------------------------------                   1,200,185        934,975
   Bonds payable, current-------------------------------------------------------------------------------------------------------                   2,260,000      2,725,000
     Total current liabilities----------------------------------------------------------------------------------------------------                 7,549,489      9,083,560
 Non-current liabilities:
   Compensated absences, non-current---------------------------------------------------------------------------------------                       428,357           337,888
   Payable to the Oklahoma City Municipal Facilities Authority---------------------------------------------------------                           900,000                 -
   Payable to the Oklahoma City Water Utilities Trust---------------------------------------------------------------------                      1,576,250         1,697,500
   Intergovernmental payable, non-current-----------------------------------------------------------------------------------                       27,331                 -
   Bonds payable, non-current-------------------------------------------------------------------------------------------------                 48,550,000        50,810,000
     Unamortized bond premium---------------------------------------------------------------------------------------------                      1,488,520         1,776,452
     Deferred amount on refunding-------------------------------------------------------------------------------------------                     (707,133)         (850,399)
    Bonds payable, gross of unamortized premium and
     net of deferred amount on refunding------------------------------------------------------------------------------------                   49,331,387        51,736,053
     Total non-current liabilities----------------------------------------------------------------------------------------------               52,263,325        53,771,441
        Total liabilities---------------------------------------------------------------------------------------------------------             59,812,814        62,855,001
 NET ASSETS
  Invested in capital assets, net of related debt-----------------------------------------------------------------------------                 33,662,516        36,234,613
  Restricted-----------------------------------------------------------------------------------------------------------------------                      -            9,356
  Unrestricted-------------------------------------------------------------------------------------------------------------------------         1,127,443        (3,263,351)
      Total net assets---------------------------------------------------------------------------------------------------------               $34,789,959       $32,980,618


See accompanying notes to financial statements.                                                         8
STATEMENTS OF REVENUES, EXPENSES,                                                                                               OKLAHOMA CITY
AND CHANGES IN NET ASSETS                                                                                        DEPARTMENT OF TRANSIT SERVICES
For the Years Ended June 30,



                                                                                                                        2007              2006
OPERATING REVENUES
Charges for services:
  Parking----------------------------------------------------------------------------------------------------------      $8,030,967        $7,543,369
  Transportation-------------------------------------------------------------------------------------------------         2,012,356         1,932,567
    Total charges for services---------------------------------------------------------------------------------          10,043,323         9,475,936
  Lease and rental income--------------------------------------------------------------------------------------                341,295           345,024
  Other------------------------------------------------------------------------------------------------------------             95,625           124,249
    Total operating revenues----------------------------------------------------------------------------------           10,480,243         9,945,209


OPERATING EXPENSES
  Personal services----------------------------------------------------------------------------------------------        11,165,745        10,582,782
  Maintenance, operations, and contractual services-------------------------------------------------------                7,781,929         7,788,941
  Materials and supplies----------------------------------------------------------------------------------------          3,202,573         2,842,430
  Depreciation---------------------------------------------------------------------------------------------------         4,006,741         3,821,642
  Payments to the City of Oklahoma City General Fund--------------------------------------------------                               -            76,609
  Payments to the Oklahoma City Municipal Facilities Authority---------------------------------------                                -           592,710
    Total operating expenses----------------------------------------------------------------------------------           26,156,988        25,705,114
       Operating loss-------------------------------------------------------------------------------------------         (15,676,745)     (15,759,905)


NON-OPERATING REVENUE (EXPENSES)
  Grants income-------------------------------------------------------------------------------------------------         10,356,578        10,923,055
  Investment income--------------------------------------------------------------------------------------------                724,365           781,372
  Interest on bonds----------------------------------------------------------------------------------------------         (2,228,480)      (2,388,864)
  Arbitrage-------------------------------------------------------------------------------------------------------             (27,331)          (13,723)
  Amortization---------------------------------------------------------------------------------------------------              (88,773)          (60,240)
  Payments from the City of Oklahoma City:
    General Fund------------------------------------------------------------------------------------------------          8,786,705         7,732,215
    Capital Improvement Fund-------------------------------------------------------------------------------                          -           362,190
    MAPS Operations Fund-----------------------------------------------------------------------------------                          -            90,000
  Other revenue (expense)-------------------------------------------------------------------------------------                 (36,978)      (135,840)
       Total non-operating revenue-------------------------------------------------------------------------              17,486,086        17,290,165
       Changes in net assets----------------------------------------------------------------------------------            1,809,341         1,530,260


  Total net assets, beginning---------------------------------------------------------------------------------           32,980,618        31,450,358
  Total net assets, ending-------------------------------------------------------------------------------------         $34,789,959       $32,980,618




See accompanying notes to financial statements.                                           9
   STATEMENTS OF CASH FLOWS                                                                                                                   OKLAHOMA CITY
   INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS                                                                            DEPARTMENT OF TRANSIT SERVICES
   For the Years Ended June 30,

                                                                                                                                 2007                   2006
   Cash flows from operating activities:
     Cash received from customers--------------------------------------------------------------------------------------                  $9,938,427            $9,621,281
     Cash payments to suppliers for goods and services--------------------------------------------------------------                     (11,348,928)           (9,936,809)
     Cash payments to employees and professional
       contractors for services--------------------------------------------------------------------------------------------              (11,119,094)          (10,705,049)
     Payments to the City of Oklahoma City General Fund----------------------------------------------------------                             (4,460)              (79,307)
     Payments to the Oklahoma City Municipal Facilities Authority-----------------------------------------------                            (213,052)            (379,658)
     Other operating revenues--------------------------------------------------------------------------------------------                   169,277               193,143
       Net cash used by operating activities-------------------------------------------------------------------------                    (12,577,830)          (11,286,399)

   Cash flows from non-capital financing activities:
     Operating grants received-------------------------------------------------------------------------------------------                  9,615,293            8,812,266
     Payments from the City of Oklahoma City General Fund------------------------------------------------------                            8,734,305            7,732,215
     Other revenues--------------------------------------------------------------------------------------------------------                    2,510               40,746
       Net cash provided by non-capital financing activities----------------------------------------------------                         18,352,108            16,585,227

   Cash flows from capital and related financing activities:
     Proceeds from issuance of revenue bonds-------------------------------------------------------------------------                              -           26,562,204
     Bond issuance costs--------------------------------------------------------------------------------------------------                         -             (384,301)
     Acquisition and construction of capital assets--------------------------------------------------------------------                   (2,678,935)           (9,871,255)
     Principal paid on bonds----------------------------------------------------------------------------------------------                (2,725,000)          (28,815,000)
     Interest paid on bonds------------------------------------------------------------------------------------------------               (2,135,160)           (3,204,917)
     Arbitrage payment----------------------------------------------------------------------------------------------------                  (109,589)                    -
     Payments to Oklahoma City Water Utilities Trust---------------------------------------------------------------                         (121,250)            (121,250)
     Payments from the City of Oklahoma City:
       General Fund-------------------------------------------------------------------------------------------------------                    52,400              362,190
       MAPS Operations Fund-------------------------------------------------------------------------------------------                             -               90,000
     Borrowings from Oklahoma City Municipal Authority---------------------------------------------------------                             900,000                      -
     Proceeds from sale of assets-----------------------------------------------------------------------------------------                         -               37,799
     Capital grants received-----------------------------------------------------------------------------------------------                 929,854             1,105,773
       Net cash used by capital and related
        financing activities----------------------------------------------------------------------------------------------                (5,887,680)          (14,238,757)

   Cash flows from investing activities:
     Purchase of investments---------------------------------------------------------------------------------------------                (14,459,559)          (19,777,538)
     Sale of investments---------------------------------------------------------------------------------------------------              15,184,240            28,256,250
     Investment income----------------------------------------------------------------------------------------------------                  725,712               775,308
       Net cash provided by investing activities--------------------------------------------------------------------                       1,450,393            9,254,020

       Net increase in cash and cash equivalents----------------------------------------------------------------------                     1,336,991              314,091
       Cash and cash equivalents, beginning--------------------------------------------------------------------------                      2,067,554            1,753,463
       Cash and cash equivalents, ending----------------------------------------------------------------------------                     $3,404,545            $2,067,554

   Reconciliation of operating loss to net cash
   used by operating activities:
     Operating loss---------------------------------------------------------------------------------------------------------            ($15,676,745)      ($15,759,905)
     Adjustments to reconcile operating loss to net
          cash used by operating activities:
       Depreciation--------------------------------------------------------------------------------------------------------                4,006,741            3,821,642
       Changes in assets and liabilities:
         (Increase) decrease in accounts receivable--------------------------------------------------------------------                     (340,163)            (106,196)
         (Increase) decrease in receivable from the City of Oklahoma City---------------------------------------                             (20,067)               (1,187)
         (Increase) decrease in receivable from the Oklahoma City Municipal Facilities Authority-----------                                     (476)                    -
         (Increase) decrease in inventories------------------------------------------------------------------------------                   (223,626)              (57,748)
         (Increase) decrease in prepaids---------------------------------------------------------------------------------                    (37,488)              12,625
         Increase (decrease) in accounts payable-----------------------------------------------------------------------                     (171,349)             761,546
         Increase (decrease) in wages and benefits payable----------------------------------------------------------                          17,141             (173,274)
         Increase (decrease) in net pension obligation----------------------------------------------------------------                       (11,603)              (32,595)
         Increase (decrease) in payable to the City of Oklahoma City----------------------------------------------                            20,727                 1,643
         Increase (decrease) in payable to Oklahoma City Municipal Facilities Authority----------------------                               (213,052)             213,052
         Increase (decrease) in compensated absences----------------------------------------------------------------                          84,165               54,541
         Increase (decrease) in deferred revenue-----------------------------------------------------------------------                      (12,035)              (20,543)
          Total adjustments-----------------------------------------------------------------------------------------------                 3,098,915            4,473,506
          Net cash used by operating activities----------------------------------------------------------------------                   ($12,577,830)      ($11,286,399)
   Non-cash investing, capital, and financing activities:
     Net increase in fair value of investments                                                                                                $1,596                 $680



See accompanying notes to financial statements.                                                              10
COMBINING STATEMENTS OF NET ASSETS                                                                                                                 OKLAHOMA CITY
June 30,                                                                                                                            DEPARTMENT OF TRANSIT SERVICES

                                                                                                                                      2007
                                                                                            Transportation Division                  River Cruises                 Parking Division
                                                                                  Authority      Enterprise            Total           Authority     Authority       Enterprise        Total
ASSETS
Current assets:
  Pooled cash and cash equivalents---------------------------------------                   $-       $57,868              $57,868              $-            $-         $95,784          $95,784
  Non-pooled cash-----------------------------------------------------------        2,404,309              -            2,404,309         287,601       558,983               -          558,983
  Investments, current-------------------------------------------------------                -             -                    -                -    9,177,161               -        9,177,161
  Accounts receivable, net--------------------------------------------------          285,307              -              285,307                -      356,784               -          356,784
  Interest receivable---------------------------------------------------------               -           800                  800                -       51,781           1,325           53,106
  Intergovernmental receivables-------------------------------------------            858,829              -              858,829         400,000              -              -                -
  Receivables from the City of Oklahoma City:
    General Fund------------------------------------------------------------              740              -                 740                 -            -               -                -
    Fleet Services Fund-----------------------------------------------------                -              -                   -                 -        1,927               -            1,927
    Grants Management Fund---------------------------------------------                19,661              -              19,661                          1,046               -            1,046
    Water Utilities Fund----------------------------------------------------              280              -                 280                 -          297               -              297
    Other Funds--------------------------------------------------------------               -              -                   -                 -          143               -              143
  Receivable from the Oklahoma City Municipal Facilities
    Authority-----------------------------------------------------------------              -              -                    -                           476               -              476
  Inventories------------------------------------------------------------------       641,863              -              641,863               -             -               -                -
  Prepaid pension benefit---------------------------------------------------           37,488              -               37,488               -             -               -                -
    Total current assets-----------------------------------------------------       4,248,477         58,668            4,307,145         687,601    10,148,598          97,109       10,245,707
Non-current assets:
  Investments, non-current-------------------------------------------------                  -             -                    -                -    5,302,055               -        5,302,055
  Deferred debt expense, net-----------------------------------------------                  -             -                    -                -      633,900               -          633,900
  Capital assets:
    Land and construction in progress------------------------------------           2,288,418              -            2,288,418        1,091,210    1,630,620               -        1,630,620
    Other capital assets, net of
      accumulated depreciation--------------------------------------------         21,460,499              -           21,460,499                -   46,908,276          47,342       46,955,618
    Total capital assets, net of
      accumulated depreciation--------------------------------------------         23,748,917              -           23,748,917        1,091,210   48,538,896          47,342       48,586,238
    Total non-current assets------------------------------------------------       23,748,917              -           23,748,917        1,091,210   54,474,851          47,342       54,522,193
       Total assets-----------------------------------------------------------     27,997,394         58,668           28,056,062        1,778,811   64,623,449         144,451       64,767,900
LIABILITIES
Current liabilities:
  Accounts payable----------------------------------------------------------          910,898              -             910,898          170,960     2,325,972              16        2,325,988
  Wages and benefits payable----------------------------------------------            225,425         51,708             277,133                -             -           7,337            7,337
  Net pension obligation----------------------------------------------------                -              -                   -                -             -               -                -
  Payables to the City of Oklahoma City:
    General Fund------------------------------------------------------------                -              -                    -               -        18,477               -           18,477
    Fleet Services Fund-----------------------------------------------------            3,261              -                3,261               -             -           1,540            1,540
    Print Shop Fund---------------------------------------------------------                -          1,106                1,106               -             -              16               16
  Payable to the Oklahoma City Municipal Facilities Authority------                     2,191              -                2,191               -             -              26               26
  Payable to the Oklahoma City Water Utilities Trust------------------                  2,911              -                2,911               -       121,250               -          121,250
  Intergovernmental payable, current-------------------------------------                   -              -                    -               -             -               -                -
  Compensated absences, current------------------------------------------             143,320         70,414              213,734               -             -           8,448            8,448
  Deferred revenue-----------------------------------------------------------             812              -                  812               -        23,216               -           23,216
  Bond interest payable-----------------------------------------------------                -              -                    -               -     1,200,185               -        1,200,185
  Bonds payable, current----------------------------------------------------                -              -                    -               -     2,260,000               -        2,260,000
    Total current liabilities-------------------------------------------------      1,288,818        123,228            1,412,046         170,960     5,949,100          17,383        5,966,483
Non-current liabilities:
  Compensated absences, non-current------------------------------------               201,874        193,990             395,864                -             -          32,493           32,493
  Payable to the Oklahoma City Municipal Facilities Authority------                         -              -                   -          900,000             -               -                -
  Payable to the Oklahoma City Water Utilities Trust------------------                      -              -                   -                -     1,576,250               -        1,576,250
  Intergovernmental payable, non-current--------------------------------                    -              -                   -                -        27,331               -           27,331
  Bonds payable, non-current----------------------------------------------                  -              -                   -                -    48,550,000               -       48,550,000
    Unamortized bond premium-------------------------------------------                     -              -                   -                -     1,488,520               -        1,488,520
    Deferred amount on refunding----------------------------------------                    -              -                   -                -      (707,133)              -         (707,133)
   Bonds payable, gross of unamortized premium and
    net of deferred amount on refunding----------------------------------                   -              -                    -                -   49,331,387               -       49,331,387
    Total non-current liabilities--------------------------------------------         201,874        193,990              395,864          900,000   50,934,968          32,493       50,967,461
       Total liabilities-------------------------------------------------------     1,490,692        317,218            1,807,910        1,070,960   56,884,068          49,876       56,933,944
NET ASSETS
  Invested in capital assets, net of related debt--------------------------        23,748,917              -           23,748,917         191,210     9,675,047          47,342        9,722,389
  Restricted-------------------------------------------------------------------             -              -                    -               -             -               -                -
  Unrestricted-----------------------------------------------------------------     2,757,785       (258,550)           2,499,235         516,641    (1,935,666)         47,233       (1,888,433)
       Total net assets------------------------------------------------------     $26,506,702      ($258,550)         $26,248,152        $707,851    $7,739,381         $94,575       $7,833,956




                                                                                                   11                                                                     (continued)
COMBINING STATEMENTS OF NET ASSETS                                                                                                                OKLAHOMA CITY
June 30,                                                                                                                           DEPARTMENT OF TRANSIT SERVICES

                                                                                                              2007                                                 2006
                                                                                  Transportation   River Cruises     Parking       Combined       Transportation   Parking       Combined
                                                                                     Division        Division        Division        Total           Division      Division        Total
ASSETS
Current assets:
  Pooled cash and cash equivalents---------------------------------------               $57,868               $-        $95,784       $153,652          $61,825       $93,541       $155,366
  Non-pooled cash-----------------------------------------------------------          2,404,309         287,601         558,983      3,250,893        1,362,677       549,511      1,912,188
  Investments, current-------------------------------------------------------                 -                -      9,177,161      9,177,161                -     8,327,241      8,327,241
  Accounts receivable, net--------------------------------------------------            285,307                -        356,784        642,091          184,932       116,996        301,928
  Interest receivable---------------------------------------------------------              800                -         53,106         53,906              645        54,607         55,252
  Intergovernmental receivables-------------------------------------------              858,829         400,000               -      1,258,829        1,447,398             -      1,447,398
  Receivables from the City of Oklahoma City:
    General Fund------------------------------------------------------------                740                -              -           740                 -             -              -
    Fleet Services Fund-----------------------------------------------------                  -                -          1,927         1,927                 -         1,898          1,898
    Grants Management Fund---------------------------------------------                  19,661                -          1,046        20,707                 -             -              -
    Water Utilities Fund----------------------------------------------------                280                -            297           577                 -             -              -
    Other Funds--------------------------------------------------------------                 -                -            143           143                 -         2,129          2,129
  Receivable from the Oklahoma City Municipal Facilities
    Authority-----------------------------------------------------------------                -               -             476            476                -             -              -
  Inventories------------------------------------------------------------------         641,863               -               -        641,863          418,237             -        418,237
  Prepaid pension benefit---------------------------------------------------             37,488               -               -         37,488                -             -              -
    Total current assets-----------------------------------------------------         4,307,145         687,601      10,245,707     15,240,453        3,475,714     9,145,923     12,621,637
Non-current assets:
  Investments, non-current-------------------------------------------------                   -                -      5,302,055      5,302,055                -     6,876,655      6,876,655
  Deferred debt expense, net-----------------------------------------------                   -                -        633,900        633,900                -       722,673        722,673
  Capital assets:
    Land and construction in progress------------------------------------             2,288,418       1,091,210       1,630,620      5,010,248        2,270,827    12,272,869     14,543,696
    Other capital assets, net of
      accumulated depreciation--------------------------------------------           21,460,499                -     46,955,618     68,416,117       23,830,045    37,240,913     61,070,958
    Total capital assets, net of
      accumulated depreciation--------------------------------------------           23,748,917       1,091,210      48,586,238     73,426,365       26,100,872    49,513,782     75,614,654
    Total non-current assets------------------------------------------------         23,748,917       1,091,210      54,522,193     79,362,320       26,100,872    57,113,110     83,213,982
       Total assets-----------------------------------------------------------       28,056,062       1,778,811      64,767,900     94,602,773       29,576,586    66,259,033     95,835,619
LIABILITIES
Current liabilities:
  Accounts payable----------------------------------------------------------            910,898         170,960       2,325,988      3,407,846        1,012,782     3,414,470      4,427,252
  Wages and benefits payable----------------------------------------------              277,133               -           7,337        284,470          259,035         8,294        267,329
  Net pension obligation----------------------------------------------------                  -               -               -              -           11,603             -         11,603
  Payables to the City of Oklahoma City:
    General Fund------------------------------------------------------------                  -               -          18,477         18,477                -         4,155          4,155
    Fleet Services Fund-----------------------------------------------------              3,261               -           1,540          4,801                -             -              -
    Print Shop Fund---------------------------------------------------------              1,106               -              16          1,122            1,259            49          1,308
  Payable to the Oklahoma City Municipal Facilities Authority------                       2,191               -              26          2,217          213,052             -        213,052
  Payable to the Oklahoma City Water Utilities Trust------------------                    2,911               -         121,250        124,161            3,338       121,250        124,588
  Intergovernmental payable, current-------------------------------------                     -               -               -              -                -       109,590        109,590
  Compensated absences, current------------------------------------------               213,734               -           8,448        222,182          214,100        14,386        228,486
  Deferred revenue-----------------------------------------------------------               812               -          23,216         24,028              971        35,251         36,222
  Bond interest payable-----------------------------------------------------                  -               -       1,200,185      1,200,185                -       934,975        934,975
  Bonds payable, current----------------------------------------------------                  -               -       2,260,000      2,260,000                -     2,725,000      2,725,000
    Total current liabilities-------------------------------------------------        1,412,046         170,960       5,966,483      7,549,489        1,716,140     7,367,420      9,083,560
Non-current liabilities:
  Compensated absences, non-current------------------------------------                 395,864               -          32,493        428,357          292,343        45,545        337,888
  Payable to the Oklahoma City Municipal Facilities Authority------                           -         900,000               -        900,000                -             -              -
  Payable to the Oklahoma City Water Utilities Trust------------------                        -               -       1,576,250      1,576,250                -     1,697,500      1,697,500
  Intergovernmental payable, non-current--------------------------------                      -               -          27,331         27,331                -             -              -
  Bonds payable, non-current----------------------------------------------                    -               -      48,550,000     48,550,000                -    50,810,000     50,810,000
    Unamortized bond premium-------------------------------------------                       -               -       1,488,520      1,488,520                -     1,776,452      1,776,452
    Deferred amount on refunding----------------------------------------                      -               -        (707,133)      (707,133)               -      (850,399)      (850,399)
   Bonds payable, gross of unamortized premium and
    net of deferred amount on refunding----------------------------------                     -               -      49,331,387     49,331,387                -    51,736,053     51,736,053
    Total non-current liabilities--------------------------------------------           395,864         900,000      50,967,461     52,263,325          292,343    53,479,098     53,771,441
       Total liabilities-------------------------------------------------------       1,807,910       1,070,960      56,933,944     59,812,814        2,008,483    60,846,518     62,855,001
NET ASSETS
  Invested in capital assets, net of related debt--------------------------          23,748,917         191,210       9,722,389     33,662,516       26,100,872    10,133,741     36,234,613
  Restricted-------------------------------------------------------------------               -               -               -              -                -         9,356          9,356
  Unrestricted-----------------------------------------------------------------       2,499,235         516,641      (1,888,433)     1,127,443        1,467,231    (4,730,582)    (3,263,351)
       Total net assets------------------------------------------------------       $26,248,152        $707,851      $7,833,956    $34,789,959      $27,568,103    $5,412,515    $32,980,618




See accompanying notes to financial statements.                                                      12
COMBINING STATEMENTS OF REVENUES, EXPENSES,                                                                                                             OKLAHOMA CITY
AND CHANGES IN NET ASSETS                                                                                                                DEPARTMENT OF TRANSIT SERVICES
For the Years Ended June 30,

                                                                                                                                       2007
                                                                                              Transportation Division                  River Cruises                  Parking Division
                                                                                    Authority       Enterprise           Total           Authority      Authority        Enterprise        Total
OPERATING REVENUES
Charges for services:
  Parking-----------------------------------------------------------------------             $-             $-                   $-               $-    $8,030,967              $-       $8,030,967
  Transportation---------------------------------------------------------------       2,012,356               -           2,012,356                -             -                -               -
    Total charges for services-----------------------------------------------         2,012,356               -           2,012,356                -     8,030,967                -       8,030,967
  Lease and rental income---------------------------------------------------             73,652               -              73,652                -       267,643                -         267,643
  Other--------------------------------------------------------------------------        83,485               -              83,485                -        12,140                -          12,140
    Total operating revenues------------------------------------------------          2,169,493               -           2,169,493                -     8,310,750                -       8,310,750

OPERATING EXPENSES
 Personal services------------------------------------------------------------        9,636,049       1,286,352          10,922,401                -         1,751         241,593          243,344
 Maintenance, operations, and contractual services---------------------               4,874,864         305,673           5,180,537              124     2,541,117          60,151        2,601,268
 Materials and supplies------------------------------------------------------         3,188,333               -           3,188,333                -         9,205           5,035           14,240
 Depreciation-----------------------------------------------------------------        2,614,804               -           2,614,804                -     1,385,741           6,196        1,391,937
 Payments to the City of Oklahoma City General Fund----------------                           -               -                   -                -             -               -                -
 Payments to the Oklahoma City Municipal Facilities Authority-----                            -               -                   -                -             -               -                -
   Total operating expenses------------------------------------------------          20,314,050       1,592,025          21,906,075              124     3,937,814         312,975        4,250,789
     Operating income (loss)---------------------------------------------           (18,144,557)     (1,592,025)        (19,736,582)            (124)    4,372,936        (312,975)       4,059,961

NON-OPERATING REVENUE (EXPENSES)
 Grants income---------------------------------------------------------------         9,701,418               -           9,701,418         655,160              -               -                -
 Investment income----------------------------------------------------------            114,673           7,153             121,826             415        595,226           6,898          602,124
 Interest on bonds------------------------------------------------------------                -               -                   -               -     (2,228,480)              -       (2,228,480)
 Arbitrage---------------------------------------------------------------------               -               -                   -               -        (27,331)              -          (27,331)
 Amortization-----------------------------------------------------------------                -               -                   -               -        (88,773)              -          (88,773)
 Payments from the City of Oklahoma City:
   General Fund-------------------------------------------------------------          8,630,365               -           8,630,365          52,400              -         103,940          103,940
   Capital Improvement Fund---------------------------------------------                      -               -                   -               -              -               -                -
   MAPS Operations Fund-------------------------------------------------                      -               -                   -               -              -               -                -
 Other revenue (expense)---------------------------------------------------             (36,978)              -             (36,978)              -              -               -                -
      Total non-operating revenue (expenses)------------------------                 18,409,478           7,153          18,416,631         707,975     (1,749,358)        110,838       (1,638,520)
      Income (loss) before transfers-------------------------------------               264,921      (1,584,872)         (1,319,951)        707,851      2,623,578        (202,137)       2,421,441
 Transfers between Department funds------------------------------------              (1,535,550)      1,535,550                   -               -       (216,995)        216,995                -
      Changes in net assets------------------------------------------------          (1,270,629)        (49,322)         (1,319,951)        707,851      2,406,583          14,858        2,421,441

  Total net assets, beginning-----------------------------------------------         27,777,331       (209,228)          27,568,103               -      5,332,798          79,717        5,412,515
  Total net assets, ending---------------------------------------------------       $26,506,702      ($258,550)         $26,248,152        $707,851     $7,739,381         $94,575       $7,833,956




                                                                                                     13                                                                      (continued)
COMBINING STATEMENTS OF REVENUES, EXPENSES,                                                                                                        OKLAHOMA CITY
AND CHANGES IN NET ASSETS                                                                                                           DEPARTMENT OF TRANSIT SERVICES
For the Years Ended June 30,

                                                                                                               2007                                                  2006
                                                                                   Transportation   River Cruises     Parking       Combined       Transportation   Parking       Combined
                                                                                      Division        Division        Division        Total           Division      Division        Total
OPERATING REVENUES
Charges for services:
  Parking-----------------------------------------------------------------------              $-             $-       $8,030,967     $8,030,967               $-    $7,543,369     $7,543,369
  Transportation--------------------------------------------------------------         2,012,356               -               -      2,012,356        1,932,567             -      1,932,567
    Total charges for services----------------------------------------------           2,012,356               -       8,030,967     10,043,323        1,932,567     7,543,369      9,475,936
  Lease and rental income---------------------------------------------------              73,652               -         267,643        341,295           68,894       276,130        345,024
  Other-------------------------------------------------------------------------          83,485               -          12,140         95,625          111,454        12,795        124,249
    Total operating revenues-----------------------------------------------            2,169,493               -       8,310,750     10,480,243        2,112,915     7,832,294      9,945,209

OPERATING EXPENSES
 Personal services-----------------------------------------------------------         10,922,401              -          243,344     11,165,745       10,345,609       237,173     10,582,782
 Maintenance, operations, and contractual services--------------------                 5,180,537            124        2,601,268      7,781,929        5,047,328     2,741,613      7,788,941
 Materials and supplies-----------------------------------------------------           3,188,333              -           14,240      3,202,573        2,828,740        13,690      2,842,430
 Depreciation-----------------------------------------------------------------         2,614,804              -        1,391,937      4,006,741        2,648,553     1,173,089      3,821,642
 Payments to the City of Oklahoma City General Fund---------------                             -              -                -              -                -        76,609         76,609
 Payments to the Oklahoma City Municipal Facilities Authority----                              -              -                -              -          592,710             -        592,710
   Total operating expenses-----------------------------------------------            21,906,075            124        4,250,789     26,156,988       21,462,940     4,242,174     25,705,114
     Operating income (loss)--------------------------------------------             (19,736,582)          (124)       4,059,961    (15,676,745)     (19,350,025)    3,590,120    (15,759,905)

NON-OPERATING REVENUE (EXPENSES)
 Grants income--------------------------------------------------------------           9,701,418        655,160                -     10,356,578       10,923,055             -     10,923,055
 Investment income---------------------------------------------------------              121,826            415          602,124        724,365           67,674       713,698        781,372
 Interest on bonds-----------------------------------------------------------                  -              -       (2,228,480)    (2,228,480)               -    (2,388,864)    (2,388,864)
 Arbitrage---------------------------------------------------------------------                -              -          (27,331)       (27,331)               -       (13,723)       (13,723)
 Amortization----------------------------------------------------------------                  -              -          (88,773)       (88,773)               -       (60,240)       (60,240)
 Payments from the City of Oklahoma City:
   General Fund-------------------------------------------------------------           8,630,365         52,400          103,940      8,786,705        7,732,215             -      7,732,215
   Capital Improvement Fund---------------------------------------------                       -              -                -              -          362,190             -        362,190
   MAPS Operations Fund------------------------------------------------                        -              -                -              -           90,000             -         90,000
 Other revenue (expense)--------------------------------------------------               (36,978)             -                -        (36,978)        (135,840)            -       (135,840)
      Total non-operating revenue (expenses)------------------------                  18,416,631        707,975       (1,638,520)    17,486,086       19,039,294    (1,749,129)    17,290,165
   Income (loss) before transfers---------------------------------------              (1,319,951)       707,851        2,421,441      1,809,341         (310,731)    1,840,991      1,530,260
 Transfers between Department funds------------------------------------                        -              -                -              -                -             -              -
      Changes in net assets-----------------------------------------------            (1,319,951)       707,851        2,421,441      1,809,341         (310,731)    1,840,991      1,530,260

  Total net assets, beginning----------------------------------------------           27,568,103              -        5,412,515     32,980,618       27,878,834     3,571,524     31,450,358
  Total net assets, ending--------------------------------------------------         $26,248,152       $707,851       $7,833,956    $34,789,959      $27,568,103    $5,412,515    $32,980,618




See accompanying notes to financial statements.                                                       14
COMBINING STATEMENTS OF CASH FLOWS                                                                                                                        OKLAHOMA CITY
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS                                                                                           DEPARTMENT OF TRANSIT SERVICES
For the Years Ended June 30,

                                                                                                                                              2007
                                                                                                  Transportation Division                  River Cruises                   Parking Division
                                                                                        Authority       Enterprise            Total         Authority      Authority          Enterprise        Total
Cash flows from operating activities:
 Cash received from customers--------------------------------------------------         $1,891,300              $-          $1,891,300               $-    $8,047,127                $-        $8,047,127
 Cash payments to suppliers for goods and services--------------------------            (8,379,872)       (305,826)         (8,685,698)            (124)   (2,599,405)          (63,701)       (2,663,106)
 Cash payments to employees and professional
   contractors for services--------------------------------------------------------      (9,615,123)     (1,240,679)        (10,855,802)              -        (1,751)         (261,541)         (263,292)
 Payments to the City of Oklahoma City General Fund----------------------                          -              -                    -              -        (4,460)                -            (4,460)
 Payments to the Oklahoma City Municipal Facilities Authority-----------                   (213,052)              -            (213,052)              -             -                 -                 -
 Other operating revenues--------------------------------------------------------           157,137               -             157,137               -        12,140                 -            12,140
   Net cash provided (used) by operating activities-----------------------              (16,159,610)     (1,546,505)        (17,706,115)           (124)    5,453,651          (325,242)        5,128,409

Cash flows from non-capital financing activities:
 Operating grants received--------------------------------------------------------       9,615,293               -           9,615,293                 -            -                 -                -
 Payments from the City of Oklahoma City General Fund------------------                  8,630,365               -           8,630,365                 -            -           103,940          103,940
 Transfers (to) from other funds of the Department---------------------------           (1,535,550)      1,535,550                    -                -     (216,995)          216,995                -
 Other revenues--------------------------------------------------------------------          2,510               -               2,510                 -            -                 -                -
   Net cash provided (used) by non-capital financing activities--------                 16,712,618       1,535,550          18,248,168                 -     (216,995)          320,935          103,940

Cash flows from capital and related financing activities:
 Proceeds from issuance of revenue bonds-------------------------------------                     -               -                  -                -              -                 -                -
 Bond issuance costs---------------------------------------------------------------               -               -                  -                -              -                 -                -
 Acquisition and construction of capital assets--------------------------------            (300,743)              -           (300,743)        (920,250)    (1,457,942)                -       (1,457,942)
 Principal paid on bonds and notes----------------------------------------------                  -               -                  -                -     (2,725,000)                -       (2,725,000)
 Interest paid on bonds------------------------------------------------------------               -               -                  -                -     (2,135,160)                -       (2,135,160)
 Arbitrage payment----------------------------------------------------------------                -               -                  -                -       (109,589)                -         (109,589)
 Payments to the Oklahoma City Water Utilities Trust-----------------------                       -               -                  -                -       (121,250)                -         (121,250)
 Payments from the City of Oklahoma City:
   General Fund-------------------------------------------------------------------                -               -                   -          52,400                -               -                -
   MAPS Operations Fund-------------------------------------------------------
 Borrowings from the Oklahoma City Municipal Authority-----------------                          -                -                  -          900,000                -               -                -
 Proceeds from sale of assets-----------------------------------------------------               -                -                  -                -                -               -                -
 Capital grants received-----------------------------------------------------------        674,694                -            674,694          255,160                -               -                -
   Net cash provided (used) by capital and related
     financing activities----------------------------------------------------------        373,951                -            373,951          287,310     (6,548,941)                -       (6,548,941)

Cash flows from investing activities:
 Purchase of investments----------------------------------------------------------               -                -                  -                -    (14,459,559)               -       (14,459,559)
 Sale of investments---------------------------------------------------------------              -                -                  -                -     15,184,240                -        15,184,240
 Investment income----------------------------------------------------------------         114,673            6,998            121,671              415        597,076            6,550           603,626
   Net cash provided by investing activities--------------------------------               114,673            6,998            121,671              415      1,321,757            6,550         1,328,307

     Net increase (decrease) in cash and cash equivalents---------------------           1,041,632          (3,957)          1,037,675          287,601         9,472             2,243           11,715
     Cash and cash equivalents, beginning---------------------------------------         1,362,677          61,825           1,424,502                -       549,511            93,541          643,052
     Cash and cash equivalents, ending----------------------------------------          $2,404,309         $57,868          $2,462,177         $287,601      $558,983           $95,784         $654,767

Reconciliation of operating income (loss) to net cash
provided (used) by operating activities:
  Operating income (loss)----------------------------------------------------------     (18,144,557)    ($1,592,025)    ($19,736,582)             ($124)    4,372,936         ($312,975)       $4,059,961
  Adjustments to reconcile operating income (loss) to net
      cash provided (used) by operating activities:
    Depreciation--------------------------------------------------------------------      2,614,804               -          2,614,804                 -    1,385,741             6,196         1,391,937
    Changes in assets and liabilities:
     (Increase) decrease in accounts receivable--------------------------------            (100,375)              -           (100,375)                -     (239,788)                 -         (239,788)
     (Increase) decrease in receivable from the City of Oklahoma City----                   (20,681)              -            (20,681)                -          614                  -              614
     (Increase) decrease in receivable from the Oklahoma City
        Municipal Finance Authority---------------------------------------------                  -               -                  -                 -          (476)               -              (476)
     (Increase) decrease in inventories------------------------------------------          (223,626)              -           (223,626)                -             -                -                 -
     (Increase) decrease in other assets------------------------------------------          (37,488)              -            (37,488)                -             -                -                 -
     Increase (decrease) in accounts payable-----------------------------------            (103,638)              -           (103,638)                -       (67,663)             (48)          (67,711)
     Increase (decrease) in wages and benefits payable-----------------------                15,383           2,716             18,099                 -             -             (958)             (958)
     Increase (decrease) in net pension obligation-----------------------------             (11,603)              -            (11,603)                -             -                -                 -
     Increase (decrease) in payable to the City of Oklahoma City----------                    5,025            (153)             4,872                 -        14,322            1,533            15,855
     Increase (decrease) in payable to Oklahoma City Municipal
        Facilities Authority--------------------------------------------------------       (213,052)               -        (213,052)                 -              -                -                  -
     Increase (decrease) in compensated absences----------------------------                 60,198          42,957          103,155                  -              -          (18,990)          (18,990)
     Increase (decrease) in deferred revenue-----------------------------------                    -               -                -                 -       (12,035)                -           (12,035)
      Total adjustments------------------------------------------------------------       1,984,947          45,520        2,030,467                  -     1,080,715           (12,267)        1,068,448
      Net cash provided (used) by operating activities--------------------             ($16,159,610)    ($1,546,505)    ($17,706,115)             ($124)   $5,453,651         ($325,242)       $5,128,409

Non-cash investing, capital, and financing activities:
 Net increase in fair value of investments                                                       $-           $640                $640                $-            $-             $956             $956




                                                                                                         15                                                                                (continued)
COMBINING STATEMENTS OF CASH FLOWS                                                                                                                         OKLAHOMA CITY
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS                                                                                            DEPARTMENT OF TRANSIT SERVICES
For the Years Ended June 30,

                                                                                                                    2007                                                      2006
                                                                                       Transportation    River Cruises      Parking         Combined       Transportation    Parking         Combined
                                                                                          Division         Division         Division          Total           Division       Division          Total
Cash flows from operating activities:
 Cash received from customers--------------------------------------------------           $1,891,300                $-     $8,047,127        $9,938,427       $1,885,493    $7,735,788       $9,621,281
 Cash payments to suppliers for goods and services--------------------------              (8,685,698)            (124)     (2,663,106)      (11,348,928)      (7,594,452)   (2,342,357)      (9,936,809)
 Cash payments to employees and professional
   contractors for services--------------------------------------------------------       (10,855,802)              -        (263,292)      (11,119,094)     (10,460,875)     (244,174)      (10,705,049)
 Payments to the City of Oklahoma City General Fund----------------------                            -              -          (4,460)           (4,460)                -      (79,307)          (79,307)
 Payments to the Oklahoma City Municipal Facilities Authority-----------                     (213,052)              -               -          (213,052)        (379,658)            -          (379,658)
 Other operating revenues--------------------------------------------------------             157,137               -          12,140           169,277          180,348        12,795           193,143
   Net cash provided (used) by operating activities-----------------------                (17,706,115)           (124)      5,128,409       (12,577,830)     (16,369,144)    5,082,745       (11,286,399)

Cash flows from non-capital financing activities:
 Operating grants received--------------------------------------------------------         9,615,293                -               -        9,615,293         8,812,266                -     8,812,266
 Payments from the City of Oklahoma City General Fund------------------                    8,630,365                -         103,940        8,734,305         7,732,215                -     7,732,215
 Transfers (to) from other funds of the Department--------------------------                        -               -               -                 -                 -               -              -
 Other revenues--------------------------------------------------------------------            2,510                -               -            2,510            40,746                -        40,746
   Net cash provided by non-capital financing activities-----------------                 18,248,168                -         103,940       18,352,108        16,585,227                -    16,585,227

Cash flows from capital and related financing activities:
 Proceeds from issuance of revenue bonds-------------------------------------                       -               -                -                -                -     26,562,204       26,562,204
 Bond issuance costs---------------------------------------------------------------                 -               -                -                -                -       (384,301)        (384,301)
 Acquisition and construction of capital assets--------------------------------              (300,743)       (920,250)      (1,457,942)      (2,678,935)      (1,764,320)    (8,106,935)      (9,871,255)
 Principal paid on bonds and notes----------------------------------------------                    -               -       (2,725,000)      (2,725,000)               -    (28,815,000)     (28,815,000)
 Interest paid on bonds------------------------------------------------------------                 -               -       (2,135,160)      (2,135,160)               -     (3,204,917)      (3,204,917)
 Arbitrage payment----------------------------------------------------------------                  -               -         (109,589)        (109,589)               -               -                -
 Payments to Oklahoma City Water Utilities Trust---------------------------                         -               -         (121,250)        (121,250)               -       (121,250)        (121,250)
 Payments from the City of Oklahoma City:
   General Fund-------------------------------------------------------------------                 -           52,400                  -        52,400           362,190                -        362,190
   MAPS Operations Fund-------------------------------------------------------                     -                -                  -             -            90,000                -         90,000
 Borrowings from Oklahoma City Municipal Authority---------------------                            -          900,000                  -       900,000                 -                -              -
 Proceeds from sale of assets-----------------------------------------------------                 -                -                  -             -            37,799                -         37,799
 Capital grants received-----------------------------------------------------------          674,694          255,160                  -       929,854         1,105,773                -      1,105,773
   Net cash provided (used) by capital and related
     financing activities----------------------------------------------------------          373,951          287,310       (6,548,941)      (5,887,680)        (168,558)   (14,070,199)     (14,238,757)

Cash flows from investing activities:
 Purchase of investments----------------------------------------------------------                 -               -       (14,459,559)     (14,459,559)               -    (19,777,538)     (19,777,538)
 Sale of investments---------------------------------------------------------------                -               -        15,184,240       15,184,240                -     28,256,250       28,256,250
 Investment income----------------------------------------------------------------           121,671             415           603,626          725,712           67,780        707,528          775,308
   Net cash provided by investing activities--------------------------------                 121,671             415         1,328,307        1,450,393           67,780      9,186,240        9,254,020

     Net increase (decrease) in cash and cash equivalents---------------------             1,037,675          287,601          11,715        1,336,991           115,305       198,786          314,091
     Cash and cash equivalents, beginning---------------------------------------           1,424,502                -         643,052        2,067,554         1,309,197       444,266        1,753,463
     Cash and cash equivalents, ending----------------------------------------            $2,462,177         $287,601        $654,767       $3,404,545        $1,424,502      $643,052       $2,067,554

Reconciliation of operating income (loss) to net cash
provided (used) by operating activities:
  Operating income (loss)----------------------------------------------------------      ($19,736,582)          ($124)     $4,059,961      ($15,676,745)    ($19,350,025)   $3,590,120       (15,759,905)
  Adjustments to reconcile operating income (loss) to net
      cash provided (used) by operating activities:
    Depreciation--------------------------------------------------------------------        2,614,804               -       1,391,937         4,006,741        2,648,553     1,173,089         3,821,642
    Changes in assets and liabilities:
     (Increase) decrease in accounts receivable--------------------------------              (100,375)              -        (239,788)         (340,163)         (47,584)       (58,612)        (106,196)
     (Increase) decrease in receivable from the City of Oklahoma City----                     (20,681)              -             614           (20,067)             510         (1,697)          (1,187)
     (Increase) decrease in receivable from the Oklahoma City
        Municipal Finance Authority---------------------------------------------                    -               -             (476)            (476)               -             -                 -
     (Increase) decrease in inventories------------------------------------------            (223,626)              -                -         (223,626)         (57,748)            -           (57,748)
     (Increase) decrease in other assets------------------------------------------            (37,488)              -                -          (37,488)          12,625             -            12,625
     Increase (decrease) in accounts payable-----------------------------------              (103,638)              -          (67,711)        (171,349)         351,204       410,342           761,546
     Increase (decrease) in wages and benefits payable-----------------------                  18,099               -             (958)          17,141         (172,236)       (1,038)         (173,274)
     Increase (decrease) in net pension obligation-----------------------------               (11,603)              -                -          (11,603)         (32,595)            -           (32,595)
     Increase (decrease) in payable to the City of Oklahoma City----------                      4,872               -           15,855           20,727            4,597        (2,954)            1,643
     Increase (decrease) in payable to Oklahoma City Municipal
        Facilities Authority--------------------------------------------------------         (213,052)              -                -         (213,052)         213,052              -          213,052
     Increase (decrease) in compensated absences----------------------------                  103,155               -         (18,990)           84,165           60,503        (5,962)           54,541
     Increase (decrease) in deferred revenue-----------------------------------                      -              -         (12,035)          (12,035)                -      (20,543)          (20,543)
      Total adjustments------------------------------------------------------------         2,030,467               -       1,068,448         3,098,915        2,980,881     1,492,625         4,473,506
      Net cash provided (used) by operating activities--------------------               ($17,706,115)          ($124)     $5,128,409      ($12,577,830)    ($16,369,144)   $5,082,745      ($11,286,399)

Non-cash investing, capital, and financing activities:
 Net increase in fair value of investments                                                      $640               $-            $956            $1,596             $548          $132             $680




See accompanying notes to financial statements.                                                           16
COTPA RETIREMENT TRUST                                                                                                           OKLAHOMA CITY
STATEMENT OF PLAN NET ASSETS                                                                                      DEPARTMENT OF TRANSIT SERVICES
June 30, 2007




ASSETS
Receivables:
  Interest and dividends-----------------------------------------------------------------------------------------------------------------------------------        $8,778
  Employer-------------------------------------------------------------------------------------------------------------------------------------------------        18,972
  Plan members--------------------------------------------------------------------------------------------------------------------------------------------         17,920
       Total receivables-----------------------------------------------------------------------------------------------------------------------------------        45,670


Investments, at fair value
  Domestic common stock-------------------------------------------------------------------------------------------------------------------------------           1,591,086
  Passive domestic stock fund---------------------------------------------------------------------------------------------------------------------------         2,410,700
  Government securities/fixed income------------------------------------------------------------------------------------------------------------------            703,381
  Passive bond funds--------------------------------------------------------------------------------------------------------------------------------------       1,056,633
  International stock---------------------------------------------------------------------------------------------------------------------------------------      715,870
  Treasury money market fund--------------------------------------------------------------------------------------------------------------------------             81,457
       Total investments----------------------------------------------------------------------------------------------------------------------------------       6,559,127
     Total assets-------------------------------------------------------------------------------------------------------------------------------------------     6,604,797


LIABILITIES
Accounts payable and accrued expenses----------------------------------------------------------------------------------------------------------------              21,045
     Total liabilities---------------------------------------------------------------------------------------------------------------------------------------      21,045

Net assets held in trust for pension benefits (1)-----------------------------------------------------------------------------------------------------          $6,583,752




(1) A schedule of funding progress is presented in the Required Supplementary Information section of
    this report.




See accompanying notes to financial statements.                                          17
 COTPA RETIREMENT TRUST                                                                                                         OKLAHOMA CITY
 STATEMENT OF CHANGES IN PLAN NET ASSETS                                                                         DEPARTMENT OF TRANSIT SERVICES
 For the Year Ended June 30, 2007




 ADDITIONS
 Contributions:
   Employer------------------------------------------------------------------------------------------------------------------------------------       $342,184
   Plan members-------------------------------------------------------------------------------------------------------------------------------         332,526
      Total contributions----------------------------------------------------------------------------------------------------------------------        674,710


 Investment income:
   Net appreciation in fair value of investments------------------------------------------------------------------------------------------             777,312
   Interest---------------------------------------------------------------------------------------------------------------------------------------      80,791
   Dividends-----------------------------------------------------------------------------------------------------------------------------------         77,773
                                                                                                                                                       935,876
   Less: investment expense----------------------------------------------------------------------------------------------------------------             (28,932)
      Net investment income-----------------------------------------------------------------------------------------------------------------           906,944
 Other--------------------------------------------------------------------------------------------------------------------------------------------         275
         Total additions----------------------------------------------------------------------------------------------------------------------        1,581,929


 DEDUCTIONS
   Benefits paid--------------------------------------------------------------------------------------------------------------------------------       360,971
   Refunds of contributions------------------------------------------------------------------------------------------------------------------          107,389
   Administrative expenses------------------------------------------------------------------------------------------------------------------            16,514
         Total deductions--------------------------------------------------------------------------------------------------------------------          484,874
 Change in net assets------------------------------------------------------------------------------------------------------------------------         1,097,055
 Net assets held in trust for pension benefits:
   Beginning of year-------------------------------------------------------------------------------------------------------------------------         5,486,697
   End of year--------------------------------------------------------------------------------------------------------------------------------       $6,583,752




See accompanying notes to financial statements.                                           18
NOTES TO FINANCIAL STATEMENTS                                                                     OKLAHOMA CITY
June 30, 2007 and 2006                                                             DEPARTMENT OF TRANSIT SERVICES

I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

I. A. INTRODUCTION

The accounting and reporting framework and the more significant accounting principles and practices are discussed in subsequent
sections of this Note. The remainder of the Notes are organized to provide explanations, including required disclosures, of the
Oklahoma City Department of Transit Services (Department) financial activities for the fiscal year ended June 30, 2007 and 2006.
Certain reclassifications have been made to the 2006 financial statements to conform to the 2007 presentation.

I. B. BASIS OF PRESENTATION

I. B. 1. RELATIONSHIP TO THE CITY OF OKLAHOMA CITY, OKLAHOMA

The Department consists of the combined financial transactions of the Central Oklahoma Transportation and Parking Authority
(Authority) and the Transportation and Parking Enterprise (Enterprise) funds of the City of Oklahoma City (City). The Central
Oklahoma Transportation and Parking Authority Employee Retirement Trust (COTPA Retirement) is reported with the fund
financial statements as a fiduciary component unit of the Department. COTPA Retirement resources are not available to fund
Department programs.

The Authority was created in 1966 as a public trust pursuant to Title 60 of the Oklahoma Statutes, Section 176, et. seq. The
purpose of the Authority is to provide a means of financing municipal public transportation services and public parking facilities.
The trust indenture provides that the Authority will acquire and operate the transportation service and parking facilities and
equipment, receive all revenue generated from these services, pay the debt service requirements on the revenue bonds issued by
the Authority, pay all operating expenses, and finance future improvements.

The City is the beneficiary of the public trust operated by the Authority. Upon termination of the trust, the residual of the trust
estate will revert to the City. The City has no legal obligation for debt issued by the Authority. The Trustees of the Authority are
the Mayor, City Manager, City Finance Director, and five citizens appointed by the City Council upon nomination by the Mayor.
The City also provides substantial funding to the Authority for operations and asset acquisitions.

The City hires the Transit Services Director who is responsible for hiring all other employees of the Authority. The City Council
approves subsidies from the City to the Authority. The Authority is included in the City’s financial reporting entity. Accordingly,
the financial activities of the Authority are reported as a discretely presented component unit in the City’s Comprehensive Annual
Financial Report.

The Enterprise funds of the City are the legal funds through which the Department’s City employees are compensated. Employee
salaries, employee benefits, certain maintenance and contractual items, certain supplies, administrative chargebacks from the City,
and certain capital assets are reported in these funds.

The Authority funds are the legal funds through which the Authority’s employees are compensated. Authority employees are
generally bus operators, mechanics, and certain administrative staff. Employee salaries and benefits, certain maintenance and
contractual items, certain supplies, and certain capital asset acquisitions are paid by the Authority’s funds. Authority funds also
account for long-term leasing, financing, and other necessary business activities not budgeted within the City Enterprise funds.

COTPA Retirement is a single employer public employee retirement system established in 1970. It is a defined benefit pension
plan for Authority employees. More detailed information about the plan is included in Note IV. B.

I. B. 2. BASIC FINANCIAL STATEMENTS

Department-wide Financial Statements

The basic financial statements include the statement of net assets; the statement of revenues, expenses, and changes in net assets;
and the statement of cash flows. These statements report financial information for the Department as a whole.




                                                                19
NOTES TO FINANCIAL STATEMENTS                                                                       OKLAHOMA CITY
June 30, 2007 and 2006                                                               DEPARTMENT OF TRANSIT SERVICES

Fund Financial Statements

Fund financial statements are combined by Division for Department funds, and all funds are considered major. COTPA
Retirement is reported separately from Department funds. Descriptions of the Department’s funds and COTPA Retirement are
included in Note I. B. 1.

I. B. 3. MEASUREMENT FOCUS, BASIS OF ACCOUNTING, AND FINANCIAL STATEMENT PRESENTATION

The financial statements of the Department are prepared in accordance with accounting principles generally accepted in the
United States of America (US GAAP). The Department applies all relevant Governmental Accounting Standards Board (GASB)
pronouncements as well as Financial Accounting Standards Board (FASB) pronouncements and Accounting Principles Board
(APB) opinions issued on or before November 30, 1989, unless those pronouncements conflict with or contradict GASB
pronouncements, in which case, GASB prevails. The Department does not apply FASB pronouncements or APB opinions issued
after November 30, 1989.

The Department reports using the economic resources measurement focus and the accrual basis of accounting. Revenues are
recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows.
COTPA Retirement financial statements also report using this same focus and basis of accounting. Employer and participant
contributions are recognized in the period in which contributions are due and the Department has made a formal commitment to
provide the contributions. Benefits and refunds are recognized when due and payable in accordance with the terms of the plan.

Department Funds

All assets and liabilities (whether current or noncurrent) are included in the statement of net assets.

Operating income reported in the fund financial statements includes revenues and expenses related to the primary, continuing
operations of the fund. Principal operating revenues are charges to customers for sales or services. Principal operating expenses
are the costs of providing goods or services and include administrative expenses and depreciation of capital assets. Other revenues
and expenses are classified as non-operating in the financial statements.

When both restricted and unrestricted resources are available for use, it is the Department's policy to use restricted resources first,
then unrestricted resources as needed.

Oklahoma River Cruises

The Oklahoma City Riverfront Redevelopment Authority (OCRRA), another City public trust, approved the Oklahoma River
Water Transport Mobility Plan (Plan). The Plan was received by the City Council on December 20, 2005. It establishes a
financing and implementation strategy for development of an intermodal, water-based transportation system on the Oklahoma
River. On January 13, 2006, the Central Oklahoma Transportation and Parking Authority trustees approved a resolution accepting
an administrative role in developing and operating the water transport system. On February 28, 2006, the Authority, OCRRA, and
the City jointly requested that $2.2 million received from the Federal Ferry Boat Discretionary Fund for the river transport (taxi)
system be transferred to the Federal Transit Administration in support of this project. On June 20, 2006, the City Council
approved a joint resolution with the Authority and OCRRA regarding the assignment and acceptance of responsibilities. Per the
resolution, the Authority will be primarily responsible for operations and finance issues, while OCRRA will provide support in
areas of planning, development, and marketing. Activity relating to the Oklahoma River Water Transport Mobility System is
included in the department-wide financial statements and reported separately in the fund financial statements under the caption
“River Cruises” as a separate division within the department. Fiscal year ended June 30, 2007, is the first year of reporting for the
Oklahoma River Cruises.

COTPA Retirement Fund

All assets and liabilities (whether current or noncurrent) are included in the statement of plan net assets. Changes in plan net
assets reported in the fund financial statements include additions and deductions related to retirement benefits provided to
Authority employees. Additions are contributions from the Authority and plan members, and investment income. Deductions
include the cost of benefits and administrative expenses.


                                                                 20
NOTES TO FINANCIAL STATEMENTS                                                                     OKLAHOMA CITY
June 30, 2007 and 2006                                                             DEPARTMENT OF TRANSIT SERVICES

I. C. ASSETS, LIABILITIES, AND NET ASSETS

I. C. 1. CASH, CASH EQUIVALENTS, AND INVESTMENTS

The Department’s City funds are subject to the City’s deposit and investment policy formally adopted by the City Council. The
Authority’s governing board formally adopted the City’s deposit and investment policy for unrestricted accounts in addition to
policies specified in the COTPA bond indenture applicable to the Department’s Authority funds as restricted by the indenture.
COTPA Retirement has deposit and investment policies separately approved by the retirement system’s oversight board. See Note
II. A. 1. for additional information on deposits and investments.

Investments are reported at fair value which is determined using selected bases. Securities traded on a national or international
exchange are valued at the last reported sales price at current exchange rates. Managed funds related to the retirement system not
listed on an established market are reported at estimated fair value as determined by the respective fund managers based on quoted
sales prices of the underlying securities. Cash deposits are reported at carrying amount which reasonably estimates fair value.

I. C. 2. INVENTORIES AND PREPAIDS

Inventories are recorded at the lower of cost or market on a first-in, first-out basis. Prepaids are recorded when purchased and
expensed when used.

I. C. 3. INTERGOVERNMENTAL RECEIVABLES

Intergovernmental receivables represent the receivables from financial assistance grants.

I. C. 4. CAPITAL ASSETS AND DEPRECIATION

Property and equipment are stated at cost and depreciated on a straight-line basis over the estimated economic useful lives of the
respective assets as follows: 50 years for parking garages and buildings; 20 years for other improvements; 5 to 12 years for buses,
trolleys, and automobiles; and 3 to 10 years for furniture and fixtures. Leasehold improvements are amortized on a straight-line
basis over the lesser of the terms of the related leases or the useful lives of the improvements. The Department generally
capitalizes assets with cost of $7,500 or more as purchases and construction outlays occur. Assets purchased or constructed with
grants are the exception. These assets are capitalized at cost of $5,000 or more. Maintenance and repairs are charged to
operations, while renewals and betterments are capitalized. When property is retired or otherwise disposed, the cost and
applicable accumulated depreciation are removed from the respective accounts and the resulting difference is recorded as non-
operating revenues/expenses.

I. C. 5. DEFERRED DEBT EXPENSE AND BOND PREMIUM

Bond issuance costs, bond premiums, and the difference between the reacquisition price and the net carrying value of refunded
debt are capitalized and amortized over the terms of the respective bonds using a method that approximates the effective interest
method.

I. C. 6. CAPITALIZED INTEREST

Interest costs are capitalized when incurred by the Authority on debt where proceeds were used to finance the construction of
assets. Interest earned on proceeds of tax-exempt borrowing arrangements restricted to the acquisition of qualifying assets is offset
against interest costs in determining the amount to be capitalized. The Authority incurred total interest costs of $2,255,704 and
$2,743,156 with $1,408 and $93,193 in interest revenue offsetting interest costs, and capitalized interest of $27,224 and $354,292
for fiscal years 2007 and 2006, respectively.

I. C. 7. COMPENSATED ABSENCES

Compensated absences represent the accrued vested vacation and sick leave benefits attributable to full-time employees based on
the personnel policies or union bargaining agreements of the City and/or the Authority.



                                                                21
NOTES TO FINANCIAL STATEMENTS                                                                       OKLAHOMA CITY
June 30, 2007 and 2006                                                               DEPARTMENT OF TRANSIT SERVICES

I. C. 8. INCOME TAXES

The Authority is exempt from Federal and state income taxes under section 115 of the Internal Revenue Code for any trade or
business related to the Authority’s tax-exempt purpose or function.

I. C. 9. USE OF ESTIMATES

The preparation of financial statements in conformity with accounting principles generally accepted in the United State of America
requires management to make estimates and assumptions that affect certain reported amounts and disclosures; accordingly, actual
results could differ from those estimates.

II. DETAIL NOTES ON ASSETS AND LIABILITIES

II. A. ASSETS

II. A. 1. DEPOSITS AND INVESTMENTS

Custodial credit risk for deposits is the risk that in the event of bank failure, the Department’s deposits may not be returned or the
Department will not be able to recover collateral securities in the possession of an outside party. The City/Authority policy
requires deposits to be 110 percent secured by collateral valued at market or par, whichever is lower, less the amount of the Federal
Deposit Insurance Corporation insurance (FDIC). Deposited funds may be invested in certificates of deposit in institutions with an
established record of fiscal health and service, as determined by a rating of C minus or above by independent rating agencies.
Collateral agreements must be approved prior to deposit of funds as provided by law. The City Council approves and designates a
list of authorized depository institutions based on evaluation of solicited responses and certifications provided by financial
institutions and recommendations of an evaluation committee and/or the City Treasurer.

At June 30, 2007 and 2006, bank balances of Authority accounts were insured or collateralized with securities held by the
Authority or the City or its agent in the Authority’s or City’s name, or collateralized with securities held by the trustee bank’s trust
department in the Authority’s name. The Department’s enterprise funds participate in the City’s internal investment pool managed
under the oversight of the City Treasurer.

The general bond indenture for the Central Oklahoma Transportation and Parking Authority, Parking System Revenue Bonds
(Bond Indenture) requires the use of trust accounts. The bond accounts are used to segregate resources accumulated for debt
service payments over the next twelve months. The operating revenue account is used to receive gross revenues from the Parking
Division. The operating and maintenance account is used for resources set aside to make up deficiencies in operating and
maintenance activities. The construction accounts are used for proceeds of revenue bond issuances that are restricted for use in
construction. The bond reserve account is used for proceeds of revenue bond issuances set aside to make up potential future
deficiencies in the bond accounts, or to make the last bond principal and interest payments. The adoption of deposit and
investment policy and other additional information are discussed in Note I. C. 1.

As of June 30, 2007, the Department had the following investments:
                                                                                                         Weighted Average
                                                       Fair Value/                                          Months to
Types of Investments                                Carrying Amount     Cost                 Ratings (1)   Maturity (2)
Money market funds                                   $14,479,216    $14,479,216              AAAm/Aaa           1.13

As of June 30, 2006, the Department had the following investments:

Money market funds                                    $15,203,896        $15,203,896         AAAm/Aaa                1.40




                                                                  22
NOTES TO FINANCIAL STATEMENTS                                                                       OKLAHOMA CITY
June 30, 2007 and 2006                                                               DEPARTMENT OF TRANSIT SERVICES

The composition of COTPA Retirement investments for 2007, at fair value, is shown on the following table:

                                                                                                Weighed Average
                                                          COTPA               Effective            Months to
                                                         Retirement          Duration (2)        Maturity (2)
Mutual funds (1)
  Equity                                               $4,717,656                  N/A
  Bond                                                  1,760,014               6.3 yrs
Treasury money market fund                                 81,457                                      .10
Total investments                                      $6,559,127

    (1)      Foreign Currency Risk is the risk that changes in exchange rates will adversely affect the fair value of an
             investment. COTPA Retirement has $715,870 invested in international mutual funds.
    (2)      Interest Rate Risk is estimated using effective duration and weighted average months to maturity as noted.

Credit Risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. Investing is performed
in accordance with investment policies adopted by the City Council complying with State Statutes and the City Charter.
City/Authority funds may be invested in: (1) direct obligations of the U. S. government, its agencies or instrumentalities to the
payment of which the full faith and credit of the U. S. government is pledged, or obligations to the payment of which the full faith
and credit of the State of Oklahoma is pledged; (2) obligations of the Government National Mortgage Association, Federal
National Mortgage Association, or Federal Home Loan Mortgage Corporation, or any Federal farm credit bank, Federal land bank,
or Federal home loan bank notes or bonds; (3) collateralized or insured certificates of deposit and other evidences of deposits at
banks, savings and loan associations, and credit unions located in the City when secured by appropriate collateral; (4) repurchase
agreements that have underlying collateral of direct obligations or obligations of the U. S. government, its agencies, and
instrumentalities; (5) money market funds regulated by the Securities and Exchange Commission which consist of authorized
domestic securities with restrictions as specified in state law; (6) State and Local Government Series (SLGS); and (7) City direct
debt obligations for which an ad valorem tax may be levied or bonds issued by a public trust of which the City is a beneficiary and
judgments rendered against the City by a court of record, provided it is a prudent investment.

Under the policy, the City/Authority may not invest in reverse repurchase agreements, derivative instruments created from, whose
value depends on, or is derived from, the value of one or more underlying assets or indices of asset values and/or has no call
options prior to the desired maturity or is a variable rate instrument. Collateralization is further restricted to permitted investments
shown previously as items (1) and (2).

Interest Rate Risk is the risk that changes in interest rates will adversely affect the fair value of an investment. Investments held
for longer periods are subject to increased risk of adverse interest rate changes. The policy provides that to the extent practicable,
investments are matched with anticipated cash flows. Investments are diversified to minimize the risk of loss resulting from over-
concentration of assets in a specific maturity period, a single issuer, or an individual class of securities. Unless matched to a
specific cash flow, investments are not made in securities maturing more than five years from the date of purchase. Certificates of
deposit may not be purchased with maturities greater than 365 days from date of purchase. Concentration of Credit Risk is the
risk of loss attributed to the magnitude of the investment in a single issuer. Cumulatively, portfolios may not be invested in any
given financial institution in excess of 5% of such institution’s total assets. Additionally, no more than 5% of the total portfolio
may be placed with any single financial institution with the exception of repurchase agreements. U.S. government securities,
SLGS, and City judgments are excluded from these restrictions.

Except in instances of specifically matched cash flows, the portfolio is structured as follows (see footnotes on following page):

                    Maturity Limitations                                      Investment Type Limitations
            Percentage of Total Invested Principal                       Percentage of Total Invested Principal
                             Maximum % (1)                                                           Maximum % (3)
              0-1 year             100%                          Repurchase agreements                     100%
              1-3 years             90                           U.S. Treasury securities (2)              100
              3-5 years             90                           Certificates of deposit                     50
                                                                 Money market funds                        100
                                                                 Savings accounts                          100
                                                                 U.S. noncallable agencies securities      100
                                                                 Judgments                                    5

                                                                  23
NOTES TO FINANCIAL STATEMENTS                                                                       OKLAHOMA CITY
June 30, 2007 and 2006                                                               DEPARTMENT OF TRANSIT SERVICES

    (1) For maturities limited to 0-1 year, the minimum percentages allowed under the policy are 5-25%.
    (2) Includes SLGS.
    (3) For investments listed, there is no minimum percentage specified under the policy.

City/Authority policy also allows surplus cash, certificates of deposit, and repurchase agreements to be collateralized with
securities with longer maturities if such maturity does not exceed ten years.
For investments, custodial credit risk is the risk that, in the event of the failure of the counterparty, the Authority will not be able
to recover the value of its investments or collateral securities in the possession of an outside party. City/Authority policy provides
that investment collateral is held by a third party custodian with whom the City has a current custodial agreement in the City’s
name or be held in the name of both parties by the Federal Reserve Bank servicing Oklahoma.

City policy is more restrictive than the requirements of Oklahoma law found in Title 62 of Oklahoma Statutes as follows: Statutes
allow investment in any agencies or instrumentalities of the U. S. government; negotiable certificates of deposit are permitted
investments without collateralization restrictions (limited to 10% of investable funds and not more than half of the 10% may be
invested in any one financial institution); prime banker’s acceptances are acceptable investment instruments (limited to 270 days
maturity or less and may comprise no more than 10% of investable funds with no more than half of the 10% in any one
commercial bank); prime commercial paper is also permitted (restricted to 180 days maturity or less and may not comprise more
than 10% of the outstanding paper of an issuing corporation with no more than 7.5% of investable funds permitted to be in
commercial paper); purchase of municipal direct debt is not limited to Oklahoma City direct debt and may include Oklahoma
counties and school districts.

The COTPA bond indenture prescribes authorized investments for accounts restricted under the indenture as follows:

    (1)       Direct obligations unconditionally guaranteed by the U. S.
    (2)       Bonds or debentures payable in cash issued by the following Federal agencies:
                     Export Import Bank of the United States
                     Federal Financing Bank
                     Farmer’s Home Administration
                     Federal Housing Administration
                     Maritime Administration
                     Public Housing Authorities
                     Government National Mortgage Association
    (3)       Investments fully insured by FDIC including:
                     Certificates of deposit
                     Savings accounts
                     Deposit accounts
                     Depository receipts
    (4)       Certificates of deposit in excess of FDIC insurance properly secured by collateral security consisting of obligations
              described in (1) and (2) above
    (5)       Commercial paper
    (6)       Money market funds
    (7)       Investment agreements

The bond indenture provides that investments mature in no more than six to sixty months, depending on the purpose of the funds
and the requirements of the account in which funds are deposited (bond, operating and maintenance, construction, etc.)

Authority investment policy is more restrictive than the requirements of Oklahoma law found in Title 60 of the Oklahoma Statutes
and the standards of the Oklahoma Uniform Prudent Investor Act. These statutes restrict public trust investing to the Prudent
Investor Rule defined by Title 60 Oklahoma Statutes to consider the purposes, terms, distribution requirements, and other
circumstances of the trust and to exercise reasonable care, skill, and caution. Investment decisions must be evaluated not in
isolation, but in the context of the trust portfolio as a whole and as a part of the overall investment strategy having risk and return
objectives reasonably suited to the trust.

COTPA Retirement has investment policies separately approved by the oversight board. Investment activity follows the Prudent
Person Rule providing for the preservation of capital, with the goal to achieve the highest possible rate of return consistent with the
tolerance for risk determined by the board. Investment policies provide for investment manager(s) who have full discretion of

                                                                  24
NOTES TO FINANCIAL STATEMENTS                                                                   OKLAHOMA CITY
June 30, 2007 and 2006                                                           DEPARTMENT OF TRANSIT SERVICES

assets allocated to them subject to the overall investment guidelines set out in the policy. Manager performance is reviewed by a
consultant who provides reports to the governing board. Any changes in the investment management firm must be reported as they
occur. Overall investment guidelines provide for diversification and allow investment in domestic and international common
stocks, fixed income securities, cash equivalents, index funds, collective trust funds, and mutual funds. The policy provides for
the engagement of a custodian who accepts possession of securities for safekeeping; collects and disburses income; collects
principal of sold, matured, or called items, and provides periodic accounting to the board. COTPA Retirement policy prohibits
investment of more than 5% of its assets in the securities of any one issuer with the exception of the U.S. government. Policy
further prohibits investment of more than 20% in any one market sector. Fixed income securities must be rated at least A.
Commercial paper must be rated A1, P1. Repurchase agreements must be collateralized by U.S. government/agency assets.

Asset allocation guidelines for COTPA Retirement are as follows:

                                                Minimum              Target          Maximum
                    Domestic Equities              30%                 60%            65%
                    International                   5                  10             15
                    Fixed income                   30                  30             65

Cash may not exceed 5% of the equities portfolio. The fixed income portfolio may be invested 100% in securities maturing in 30
years or less.

COTPA Retirement holds $4,717,656 in common stock or stock funds. These are held by the investment counterparty, not in the
name of COTPA Retirement or the Authority.

Parking Division investments were restricted for the following purposes at June 30, 2007 and 2006.

                                                                        2007                                 2006
Refunding Series’ 2006 and 1996 and Revenue Series 2003 bond issues:
    Bond accounts                                                    $3,460,185                          $3,669,331
    Construction accounts                                               915,591                           2,490,191
    Bond reserve account                                              4,386,464                           4,386,464
        Total                                                        $8,762,240                         $10,545,986

II. A. 2. ACCOUNTS RECEIVABLE

Receivables include monthly parking agreements, public transportation incentive agreements with various downtown vendors, and
charter services. These receivables are due within one year. The allowance amount is estimated using accounts receivable past
due more than 60 days. Related amounts are shown in the following table:

                                                         2007                                              2006

                                                  Transportation          Parking          Transportation           Parking

Accounts receivable                                  $285,307            $396,198              $184,932             $127,719
Less: Allowance for uncollectible accounts                  -             (39,414)                    -              (10,723)
Net accounts receivable                              $285,307            $356,784              $184,932             $116,996

Uncollectible amounts netted with revenues                   $-           $28,692                     $-            ($7,243)

II. A. 3. CAPITAL ASSETS

Changes in Capital Assets

The table on the following page provides a summary of changes in capital assets for fiscal year 2007:




                                                                25
NOTES TO FINANCIAL STATEMENTS                                                                             OKLAHOMA CITY
June 30, 2007 and 2006                                                                     DEPARTMENT OF TRANSIT SERVICES

                              CAPITAL ASSETS
                             NOT DEPRECIATED                                 CAPITAL ASSETS, DEPRECIATED
                                                                                                                      Other
                                                                                                                    Furniture,
                                                                      Improvements                    Parking      Machinery,
                                        Construction                   Other Than     Buses and      Garages and       and
Capital Assets                Land       In Progress     Buildings      Buildings    Automobiles    Surface Lots   Equipment      Totals
  Balance, June 30, 2006   $3,901,447   $10,642,249    $11,655,984     $5,489,361    $24,599,444    $57,750,936    $5,204,398 $119,243,819
   Increases                        -     1,448,898         36,187            625         25,799     11,106,642       222,294   12,840,445
   Decreases                        -   (10,982,346)              -              -             -               -     (778,160) (11,760,506)
  Balance, June 30, 2007    3,901,447     1,108,801     11,692,171      5,489,986     24,625,243     68,857,578     4,648,532 120,323,758

Accumulated depreciation
  Balance, June 30, 2006            -             -      2,619,632      3,375,067     12,881,719     21,617,262     3,135,485     43,629,165
   Increases                        -             -        208,792        148,567      2,054,215      1,291,752       303,415      4,006,741
   Decreases                        -             -              -              -              -              -      (738,513)      (738,513)
  Balance, June 30, 2007            -             -      2,828,424      3,523,634     14,935,934     22,909,014     2,700,387     46,897,393

Total Department
  Capital assets, Net      $3,901,447    $1,108,801     $8,863,747     $1,966,352     $9,689,309    $45,948,564    $1,948,145    $73,426,365

The following table provides a summary of changes in capital assets for fiscal year 2006:
                              CAPITAL ASSETS
                             NOT DEPRECIATED                                 CAPITAL ASSETS, DEPRECIATED
                                                                                                                      Other
                                                                                                                    Furniture,
                                                                      Improvements                    Parking      Machinery,
                                        Construction                   Other Than     Buses and      Garages and       and
Capital Assets                Land      In Progress      Buildings      Buildings    Automobiles    Surface Lots   Equipment      Totals
  Balance, June 30, 2005   $3,901,447    $1,895,728    $11,655,984     $5,451,670    $24,692,820    $57,684,645    $3,565,345 $108,847,639
   Increases                        -     8,812,812               -        37,691        170,743         66,291     1,639,053   10,726,590
   Decreases                        -       (66,291)              -              -      (264,119)              -              -   (330,410)
  Balance, June 30, 2006    3,901,447   10,642,249      11,655,984      5,489,361     24,599,444     57,750,936     5,204,398 119,243,819

Accumulated depreciation
  Balance, June 30, 2005            -             -      2,413,856      3,227,150     10,827,425     20,544,423     2,842,389     39,855,243
   Increases                        -             -        205,776        147,917      2,102,014      1,072,839       293,096      3,821,642
   Decreases                        -             -              -              -        (47,720)             -             -        (47,720)
  Balance, June 30, 2006            -             -      2,619,632      3,375,067     12,881,719     21,617,262     3,135,485     43,629,165

Total Department
  Capital assets, Net      $3,901,447 $10,642,249       $9,036,352     $2,114,294    $11,717,725    $36,133,674    $2,068,913    $75,614,654

Depreciation Expense

Depreciation expense was charged to the Department's functions as follows:

                                                                 2007                            2006
                                Transportation                $2,614,804                     $2,648,553
                                Parking                        1,391,937                      1,173,089

Construction Commitments

Active construction in progress is composed of the following at June 30, 2007:

                                                                 Spent to                      Remaining
                                                              June 30, 2007                   Commitment
                                Transportation                    $17,591                        $64,834
                                River Cruises                   1,091,210                      2,469,477
                                                               $1,108,801                     $2,534.311

Construction projects are substantially funded with operating revenues, City subsidies, bond proceeds, and Federal grants.


                                                                        26
NOTES TO FINANCIAL STATEMENTS                                                                       OKLAHOMA CITY
June 30, 2007 and 2006                                                               DEPARTMENT OF TRANSIT SERVICES

II. B. LIABILITIES

II. B. 1. PAYABLE TO THE CITY OF OKLAHOMA CITY, OKLAHOMA

The Department operates the parking facility in the Cox Business Services Convention Center (formerly the Myriad Convention
Center) under a lease agreement with the City. Prior to September 1, 1996, the amount of rental expense was the excess of
revenues over operating and administrative expenses required to operate the parking facility. The Authority was permitted to
retain the excess, if necessary, until such time as revenues from the operation of the Department’s parking garages were sufficient
to meet certain debt service requirements. Unpaid rental expense accrued for periods prior to the amendment of the lease
agreement. Effective September 1, 1996, the Authority and the City amended the lease agreement. The amended agreement
allows the Authority to retain all net proceeds from the operation of the Cox Business Services Convention Center garage, with no
excess due to the City, if the Authority had no surplus revenues for the year. Surplus revenues are defined as all revenues less
expenses of operating and maintaining the parking facilities, annual principal, interest, and reserve requirements and any
reimbursement to the Oklahoma City Water Utilities Trust (OCWUT). See Note II. B. 2. for more information. The amount
payable, reported as accounts payable, at the amendment date remains outstanding and is reported in the financial statements with
a balance of $1,784,142 at June 30, for both 2007 and 2006.

II. B. 2. PAYABLE TO THE OKLAHOMA CITY WATER UTILITIES TRUST

Concurrent with the issuance of the 1986 bonds, the Authority and the OCWUT, formerly known as the Oklahoma City Municipal
Improvement Authority (OCMIA), entered into an Agreement of Support (Agreement). The Agreement provides for financial
support of the Department’s parking system from the monthly net revenues of the water and wastewater systems of the City of
Oklahoma City. OCWUT is required to replenish the Authority’s bond reserve account if the balance in such account remains
below the minimum required amount for a period of eleven months. OCWUT is further required to maintain or revise its schedule
of rates and charges for services at or to a level sufficient to provide adequate net revenues to ensure that such support is available.
The Agreement was assigned to the Series 1996 bonds and could not be terminated by OCWUT while those bonds remained
outstanding. A similar agreement was entered into with OCWUT when the Series 2003 and 2006 refunding bonds were issued.

On June 29, 1988, OCWUT loaned $2,425,000 (including issuance costs) pursuant to the Agreement. Subsequent to fiscal year
2001, OCWUT and the Authority negotiated a repayment agreement. This agreement requires the Authority to repay the loan,
without interest, over a period of 20 years beginning in fiscal year 2002. The amount payable to OCWUT at June 30, 2007 and
2006 was $1,697,500 and $1,818,750, respectively.

II. B. 3. REVENUE BONDS

The Authority issued bonds for financing the construction or acquisition of parking facilities and for refinancing outstanding bond
issues. The bonds are collateralized principally by the net revenues of certain parking facilities owned or operated by the
Department, parking subscription agreements, and revenues pledged by the OCWUT under Agreements of Support. See Note II.
B. 2. for more information.

On October 23, 1996, the Authority issued $43,435,000 in parking system revenue and refunding bonds maturing in 1997 through
2016 (Series 1996 Bonds). Total proceeds of $42,813,254 were net of discount and accrued interest totaling $621,746.
Underwriting and other issuance costs totaled $622,732. Of the proceeds, $28,213,300 was used to refund a portion of the
outstanding Authority bonds, Refunding Series 1986 (1986 Bonds). Remaining proceeds were designated to provide certain
repairs and remodeling of facilities comprising the parking system, construct a new surface parking lot and skywalk linking
specified City facilities, and pay the issuance costs of the bonds.

The Series 1996 Bonds were subject to early redemption in part or in whole at the option of the Authority at par value plus accrued
interest to date of redemption. Principal retirements were made on July 1. Interest payments were made on January 1 and July 1
each year. The Series 1996 Bonds maturing July 1, 2007, through 2016 were defeased on April 5, 2006 and retired on July 3, 2006
with the proceeds of the Series 2006 Refunding Bonds and excess bond reserve funds. See discussion of Forward Delivery
Refunding Bonds.

On November 12, 2003, the Authority issued $26,715,000 in parking system revenue bonds (Series 2003). Total proceeds of
$26,865,418 include a premium of $150,418. Underwriting and other issuance costs totaled $437,185. Bonds will mature on
July 1 of each year beginning with July 1, 2006. Interest payments are payable on January 1 and July 1 beginning July 1, 2004.

                                                                  27
NOTES TO FINANCIAL STATEMENTS                                                                     OKLAHOMA CITY
June 30, 2007 and 2006                                                             DEPARTMENT OF TRANSIT SERVICES

The proceeds of the bonds were used to (1) provide funds to finance the design and construction of the City Center (formerly
Galleria) Parking Garage Expansion Project (the “Project”) which is owned and operated by the Authority, (2) provide funds to
reimburse the Authority for monies previously expended to finance the Project, (3) fund the Series 2003 Bond Reserve Fund, and
(4) pay the issuance costs of the 2003 Bonds.

The Series 2003 Bonds with stated maturities on and after July 1, 2014, are subject to early redemption on July 1, 2013, in whole
or in part at the option of the Authority at par value plus accrued interest to date of redemption. Series 2003 Bonds outstanding at
June 30, 2007, are $25,975,000.

Forward Delivery Refunding Bonds

On August 18, 2005, the Authority sold Revenue Refunding Bonds, Series 2006 for $24,835,000 of forward delivery refunding
bonds with an average interest rate (coupon) of 5.1%. Total proceeds include $1,727,204 in premium. Underwriting fees,
insurance premiums, and other issuance costs were $384,301. The bonds were delivered on April 5, 2006 to refund the Parking
System Revenue and Refunding Bonds, Series 1996 with an average interest rate of 5.3%. Certain series of the 1996 bonds,
ineligible for advance refunding, were not eligible for call until July 1, 2006, when they were refunded by the proceeds of the 2006
refunding bonds. Net proceeds of $27,401,722 and $1,495,412 excess bond reserve funds were used to purchase U.S. government
securities deposited in an irrevocable trust with an escrow agent. Remaining proceeds of $271,643 were deposited in a
construction fund. Total remaining debt service on the refunded bonds was paid on July 3, 2006, from the irrevocable trust.
COTPA refunded the 1996 bonds with this forward transaction to capture benefits from recent declines in interest rates. COTPA
realized approximate economic gain of $1,300,000 and debt service cash flow benefit between the new and old bonds of
$3,900,000.

The $24,835,000 Series 2006 Revenue Refunding Bonds, issued April 5, 2006, mature on July 1, 2007 through 2016. Interest
payments are payable on January 1 and July 1 beginning January 1, 2007.

The Series 2006 Bonds are not subject to optional redemption. Series 2006 Bonds outstanding at June 30, 2007, are $24,835,000.

Annual debt service requirements to maturity for revenue bonds are as follows:

                Fiscal Year                  Principal                   Interest                       Total
                2008                        $2,260,000                  $2,349,570                   $4,609,570
                2009                         2,390,000                   2,249,160                    4,639,160
                2010                         3,220,000                   2,127,250                    5,347,250
                2011                         3,365,000                   1,979,075                    5,344,075
                2012                         3,525,000                   1,822,343                    5,347,343
                2013 - 2017                 18,870,000                   6,435,855                   25,305,855
                2018 - 2022                  5,965,000                   3,442,215                    9,407,215
                2023– 2027                   7,620,000                   1,791,663                    9,411,663
                2028 – 2029                  3,595,000                     172,781                    3,767,781
                                           $50,810,000                 $22,369,912                  $73,179,912

The following is a description of revenue bonds payable at June 30, 2007:

                                                                              Amount         Interest       Issue      Principal
            Description                                                       Issued         Rate %         Date     Maturity Date

COTPA Parking System Revenue Bonds, Series 2003                            $26,715,000      2.00-5.00% 11/12/03         7/1/2028
COTPA Parking System Revenue Refunding Bonds, Series 2006                   24,835,000      5.00-5.25  04/05/06         7/1/2016




                                                                28
NOTES TO FINANCIAL STATEMENTS                                                                                 OKLAHOMA CITY
June 30, 2007 and 2006                                                                         DEPARTMENT OF TRANSIT SERVICES

II. B. 4. CHANGES IN LONG-TERM LIABILITIES

The following is a summary of changes in long-term liabilities for the year ended June 30, 2007:

                                                                   Balance                                          Balance       Due
                                                                   July 1,                                          June 30,     Within
Description and purpose                                             2006             Issued         Retired           2007      One Year
      Revenue bonds:
          Parking                                                $53,535,000              $-       $2,725,000     $50,810,000   $2,260,000
      Compensated absences:
          Transportation                                            506,443         666,034          562,879         609,598      213,734
          Parking                                                    59,931               -           18,990          40,941        8,448
      Payable to Oklahoma City Municipal Facilities Authority:
          River Cruises                                                      -      900,000                   -      900,000             -
      Payable to Oklahoma City Water Utilities Trust:
          Parking                                                  1,818,750               -          121,250       1,697,500      121,250
Total Department                                                 $55,920,124      $1,566,034       $3,428,119     $54,058,039   $2,603,432

The following is a summary of changes in long-term liabilities for the year ended June 30, 2006:

                                                                   Balance                                          Balance       Due
                                                                   July 1,                                          June 30,     Within
Description and purpose                                             2005             Issued         Retired           2006      One Year
     Revenue bonds:
          Parking                                                $57,515,000     $24,835,000      $28,815,000     $53,535,000   $2,725,000
     Compensated absences:
          Transportation                                            445,940         557,296          496,793         506,443      214,100
          Parking                                                    65,893           8,424           14,386          59,931       14,386

      Payable to Oklahoma City Water Utilities Trust:
         Parking                                                   1,940,000               -          121,250       1,818,750      121,250
Total Department                                                 $59,966,833     $25,400,720      $29,447,429     $55,920,124   $3,074,736

II. B. 5. ARBITRAGE COMPLIANCE

Proceeds from tax-exempt bonds issued after September 1, 1986, are subject to the 1986 Tax Reform Act. The Department
invests, records, and reports these proceeds in the manner set forth by the U.S. Treasury and Internal Revenue Service to maintain
the tax-exempt status of the bonds. The arbitrage filing requirements for the bond issue is 60 days from July 1, 2010. Therefore,
the contingent rebatable arbitrage amount of $27,331 is recorded as a non-current liability.

II. B. 6. CONTRACT COMMITMENTS

The Authority entered into a contract with Republic Parking Systems, Inc., to provide management of parking facilities through
June 30, 2009, with options for two one-year extensions. The amount of the contract is $60,000 annually plus operating expenses
and management incentive fees not to exceed $45,000 annually.

II. B. 7. OTHER POST-EMPLOYMENT BENEFITS

In addition to the pension benefits described in Note IV., the City/Department provides post-employment benefit options for health
care, life insurance, dental insurance, and disability income to eligible retirees and terminated employees, as well as their
dependents. The benefits are provided in accordance with City ordinances, collective bargaining agreements, and the Consolidated
Omnibus Budget Reconciliation Act of 1985 (COBRA). The criteria to determine eligibility include: years of service, employee
age, disability in the line of duty, and whether the employee has vested in the respective retirement plan. The City funds the
benefits on a pay-as-you-go basis. Eligible employees are required to pay set premiums for a portion of the cost with the City
subsidizing the remaining costs. During the year, expenses (net of participant contributions) of $17.2 million were recognized for
post-employment benefits for the City as a whole. There are 3,441 participants eligible at June 30, 2007. Expenses for post-
retirement health care benefits are recognized as eligible employee claims are paid. Expenses incurred by retired Department
employees are not independently available. The Governmental Accounting Standards Board issued two new standards relating to
OPEB which the City/Department has not implemented. Management contracted with an actuarial firm to assist in evaluating the
impact of these new standards on the City/Department and planning for implementation.

                                                                          29
NOTES TO FINANCIAL STATEMENTS                                                                    OKLAHOMA CITY
June 30, 2007 and 2006                                                            DEPARTMENT OF TRANSIT SERVICES

III. CONTINGENCIES

In the normal course of operations, the Department receives grant funds from various Federal agencies. The grant programs are
subject to audit by agents of the granting authority, the purpose of which is to ensure compliance with conditions precedent to the
granting of funds. Any liability for reimbursement which may arise as the result of these audits is not believed to be material.
Certain claims, suits, and complaints arising in the ordinary course of business have been filed or are pending against the
Department. In the opinion of management and legal counsel, none of these matters will have a material adverse effect on the
financial position or operations of the Department. The Department is self-insured for property loss of buses. In the event of loss
due to casualty or fire, the Authority is responsible for refunding the Federal government 83% of the net book value of certain
buses. The Department is self-insured for liability related to accidents involving their transportation equipment up to $50,000.
The Department recorded liabilities to cover such losses in the amount of $150,059 for 2007 and $142,445 for 2006, reported with
accounts payable.

IV. DEFINED BENEFIT PENSION PLANS

Employees of the Department participate in one of two single-employer, public employee retirement systems.

IV. A. OKLAHOMA CITY EMPLOYEE RETIREMENT SYSTEM

Certain full-time employees of the Department’s Enterprise funds (City) are eligible to participate in the City of Oklahoma City
Employee Retirement System (OCERS). Approximately 20 Department employees currently participate in the OCERS. The
OCERS issues a publicly available Comprehensive Annual Financial Report (CAFR) which may be obtained from the City’s
Accounting Services Division at 100 N. Walker, Oklahoma City, Oklahoma 73102. The CAFR includes the financial statements
and required supplementary information of the OCERS.

IV. B. CENTRAL OKLAHOMA TRANSPORTATION AND PARKING AUTHORITY EMPLOYEE RETIREMENT
       TRUST

The COTPA Employee Retirement Trust administers the Central Oklahoma Transportation and Parking Authority Pension Plan
(Plan), which was established in 1970. The Plan is a defined benefit plan and provides retirement benefits for certain Authority
employees. As of July 1, 2007, the date of the most recent actuarial valuation, participants included 104 nonvested active
participants, 54 fully vested active participants, 52 retired participants and beneficiaries currently receiving benefits, and 4
terminated Plan members entitled to but not yet receiving benefits. Assets of the Plan are held separately and may be used only for
the payment of benefits to the members. Following is a summary of funding policies, contribution methods, and benefit
provisions:

Governing authority                                                   COTPA Trustee’s resolution

Determination of contribution requirements                            Contracted pursuant to union negotiations

     Employer                                                         $39.69 per week
     Plan members                                                     $39.69 per week

Funding of administrative costs                                       Investment earnings

Period required to vest                                               10 years

Post-retirement benefit increases                                     Increases must be approved by the COTPA Board of
                                                                      Trustees

Eligibility for distribution                                          25 years credited service regardless of age, or age 65 with
                                                                      10 years, or age 62 with 10 years on a reduced basis
Provisions for:
    Disability benefits                                               Yes
    Death benefits                                                    Yes


                                                               30
NOTES TO FINANCIAL STATEMENTS                                                                    OKLAHOMA CITY
June 30, 2007 and 2006                                                            DEPARTMENT OF TRANSIT SERVICES

IV. B. 1. ANNUAL REQUIRED CONTRIBUTIONS

Actuarial assumptions and other information used to determine the annual required contributions (ARC) are located in the
following schedule:

Valuation date                                                        07/01/07
Actuarial cost method                                                 Individual entry age normal
Amortization method                                                   Level dollar
Amortization period                                                   30 years open
Actuarial asset valuation method                                      Fair market value
Actuarial assumptions:
    Investment rate of return                                         7.0%
    Projected salary increases                                        None
    Post retirement benefit increases                                 None
    Inflation                                                         None
    Other                                                             1983 group annuity mortality tables,
                                                                          Scale 355 withdrawal rates

IV. B. 2. ANNUAL PENSION COST, NET PENSION OBLIGATION, AND RESERVES

There are no assets legally reserved for purposes other than the payment of plan member benefits. The Plan held no individual
investments (other than U.S. government and U.S. government guaranteed obligations) whose market value exceeds five percent
or more of net assets available for benefits. There were no long-term contracts for contributions.

Trend Information
                                               Annual                                                      Net
                      Fiscal                   Pension                       Percentage                  Pension
                      Year                      Cost                         Contributed            Obligation (NPO)
                      2007                    $291,925                          117%                    ($37,488)
                      2006                     298,259                          111                       11,603
                      2005                     324,109                         109                        44,198

On September 22, 1989, the Board of Trustees of the Plan voted to fully vest all plan participants who were leaving the Authority’s
employment in accordance with the Interlocal Cooperation Agreement (See Note VI.) The affected plan participants have the
option of withdrawing their vested account balances or remaining in the Plan and drawing reduced benefits at retirement.

Net Pension Obligation
                                                                               COTPA Retirement
                                                                   2007            2006           2005
         Annual required contribution                            $291,987        $298,494       $324,500
         Interest on net pension obligation                           812           3,094          5,150
         Adjustment to annual required contribution                  (874)         (3,329)        (5,541)
         Annual pension cost                                      291,925         298,259        324,109
         Contributions made                                      (341,016)       (330,854)      (353,479)
         Increase (decrease) in net pension obligation            (49,091)        (32,595)       (29,370)
         Net pension obligation, beginning of year                 11,603          44,198         73,568
         Net pension obligation, end of year                     ($37,488)        $11,603        $44,198

V. DEFINED CONTRIBUTION PLAN

On July 1, 2001, the Authority established a defined contribution plan for eligible administrative employees not represented by a
union. It is in addition to COTPA Retirement and provides that the employee may voluntarily contribute to the COTPA ICMA plan
and the Authority will match employee contributions up to $1,000 annually. The COTPA ICMA plan includes 21 participants. For
fiscal year 2007, participants contributed $28,574 and the Authority contributed $12,384 to the plan.



                                                               31
NOTES TO FINANCIAL STATEMENTS                                                                     OKLAHOMA CITY
June 30, 2007 and 2006                                                             DEPARTMENT OF TRANSIT SERVICES

VI. DEPENDENCY ON THE CITY OF OKLAHOMA CITY AND RELATED ENTITIES

During fiscal year 2007 and 2006 revenues from the Transportation Division were not sufficient to meet operating expenses or
capital requirements. In addition, during 2007 the River Cruises Division required revenue for initial capital outlay until other
funding was in place. As a result, the Department received funding from the City of $8,786,705 and $8,184,405 for 2007 and
2006, respectively. The Department will be dependent upon subsidies from the City to meet operating and capital requirements
during fiscal year 2008.

On June 23, 1989, the Board of Trustees of the Authority approved the “Interlocal Cooperation Agreement” between the Authority
and the City for administrative management of the parking and transit systems. This agreement provides that the management of
both the transit and parking systems would be assumed by the City, and the non-administrative employees will remain Authority
employees.

VII. SUBSEQUENT EVENTS

On August 3, 2007, the COTPA Board of Trustees approved a naming rights agreement by and between the Oklahoma City
Riverfront Redevelopment Authority (OCRRA), the Authority, and Devon Energy Corporation (Devon). The agreement provides
for a display of Devon’s name on three watercraft for the fifteen year term of the agreement. The negotiated fee for the naming
rights is $2 million and will be used by the Authority, along with a federal grant, to fund the construction of the first three
watercraft (cruisers) placed into service by the Authority. Consequently, OCRRA will transfer the proceeds for the naming rights
to the Authority. Devon is granted the right of first refusal for naming rights to any additional cruisers placed into service at an
agreed rate of $55,000 per cruiser per year. The agreement establishes the option of a single renewal term of five years.

The $2 million fee was paid to OCRRA by Devon in August 2007, in a lump sum, and was received by the OCRRA to be
transferred to the Authority. In September 2007, OCRRA transferred $1 million of the naming rights proceeds to the Authority.

On September 7, 2007, the Trustees approved a contract with Hornblower Marine Services – Oklahoma, Inc., for the operation,
maintenance, and management of the Oklahoma River Cruises. The Contract is for three years with two one-year extension
options. Costs include a one-time start up mobilization fee of $40,000 and a $15,000 monthly management fee, plus
reimbursement of operating costs not paid directly to suppliers by the Authority.




                                                                32
CENTRAL OKLAHOMA TRANSPORTATION AND
PARKING AUTHORITY EMPLOYEE RETIREMENT TRUST
Required Supplementary Information                                                          OKLAHOMA CITY
June 30, 2007                                                                DEPARTMENT OF TRANSIT SERVICES

   SCHEDULE OF FUNDING PROGRESS (dollars are in thousands)

                                                                                                              UAAL as a
                    Actuarial             Actuarial Accrued     Unfunded                                      Percentage
    Actuarial       Value of               Liability (AAL)        AAL        Funded          Covered          of Covered
    Valuation        Assets                  --entry age        (UAAL)        Ratio          Payroll            Payroll
      Date             (a)                        (b)             (b-a)       (a/b)            (c)             ((b-a)/c)

    07/01/07        $6,567                    $9,566                $2,999    69%            $7,900               38%
    07/01/06         5,464                     9,077                 3,613    60              5,400               67
    07/01/05         4,908                     8,577                 3,669    57              5,500               67
    07/01/04         4,203                     7,797                 3,594    54              5,472               66
    07/01/03         3,347                     7,453                 4,106    45              5,109               80
    07/01/02         3,038                     7,120                 4,082    43              4,996               82
    07/01/01         3,125                     5,485                 2,360    57              4,295               55



   SCHEDULE OF EMPLOYER CONTRIBUTIONS

                           Annual
        Fiscal            Required               Percentage
        Year         Contribution (ARC)          Contributed

         2007            $291,987                   117%
         2006             298,494                   109
         2005             324,500                   109
         2004             309,705                   117
         2003             356,554                    74
         2002             244,275                    86

   NOTES TO REQUIRED SUPPLEMENTARY INFORMATION

   Actuarial assumptions and other information used to determine the annual required contributions (ARC) are located in
   Note IV. B. 1.




                                                               33

				
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