Consultant gives Claremore a 7.1 financial score, warns COVID relief and tornado costs may depress near-term results

An outsourced city treasurer gave Claremore an overall financial 'performator' score of about 7.1 and told the Claremore City Council that the figure reflects healthy finances for a city this size while warning recent one-time federal aid and tornado recovery spending have distorted year-to-year results.

The presentation, delivered by a consultant identified in the meeting transcript as Frank, used a composite of roughly 17 financial ratios grouped into three categories—position (health), performance (12-month results) and capability (sustainability). Frank said the model is designed to simplify lengthy audited financial statements into a 0-to-10 score that elected officials and the public can readily understand.

"There's nothing wrong with a 7.1. It's actually really good," Frank told council members, while cautioning that recent years are artificially high because of CARES and ARPA funding and that a May 2024 tornado required spending from reserves. He advised the council that reimbursements typically arrive in pieces and that Claremore was still awaiting substantial FEMA payments tied to tornado recovery.

Frank highlighted several specific metrics: the city's unassigned general fund balance was roughly 2.1% of annual revenue (about $441,000), below his preferred target of about 10%; assigned fund balances of approximately $4.5 million reflected management's planned uses; quick ratios showed strong short-term liquidity largely driven by one-time federal funds; and capital-asset condition indicated roughly half-life remaining on major assets such as roads and buildings.

Frank said sales-tax growth that spiked during the COVID era (two years of near double-digit increases) had largely normalized, with a 1.1% increase in fiscal 2024, and he warned councils not to budget on pandemic-era revenue levels. He also noted that police pension appeared fully funded through fiscal 2024 while the city's share of the fire pension obligation remained an unfunded liability that lowers the position score.

In Q&A, council members probed the driver of changes in the debt-to-asset ratio and whether bond proceeds were being spent on capital projects or operations. Frank and staff said the city issued bonds for water projects and that unspent bond proceeds can temporarily alter ratios until the capital is placed in service. On FEMA reimbursements, staff confirmed several million dollars remained outstanding; Frank noted reimbursements sometimes arrive over multiple disbursements and can be delayed.

The presentation concluded without council action; several council members thanked Frank and staff for the clarity of the report and said they would use the performator results as a recurring annual tracking tool.