12.31.2017 Comprehensive Annual Financial Report
CITY OF NORTH AUGUSTA
SOUTH CAROLINA
COMPREHENSIVE ANNUAL
FINANCIAL REPORT
YEAR ENDED
DECEMBER 31, 2017
Prepared by
Department of Finance
Cammie T. Hayes
Director of Finance
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
TABLE OF CONTENTS
Page
INTRODUCTORY SECTION (UNAUDITED)
Letter of Transmittal 1
GFOA Certificate of Achievement 7
City Organizational Chart 8
Principal Officials 9
FINANCIAL SECTION
Report of Independent Auditor
Report of Independent Auditor on Internal Control Over Financial
Reporting and on Compliance and Other Matters Based on an Audit of Financial
Statements Performed in Accordance with Government Auditing Standards
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Management’s Discussion and Analysis 14
Basic Financial Statements
Government-wide Financial Statements
Statement of Net Position 23
Statement of Activities 24
Fund Financial Statements
Balance Sheet – Governmental Funds 25
Reconciliation of the Balance Sheet of Governmental Funds to the
Statement of Net Position 26
Statement of Revenues, Expenditures and Changes in Fund Balances -
Governmental Funds 27
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund
Balances of Governmental Funds to the Statement of Activities 28
General Fund - Statement of Revenues, Expenditures and Changes in Fund
Balance – Budget and Actual 29
Proprietary Funds – Statement of Net Position 30
Proprietary Funds – Statement of Revenues, Expenses and Changes in Net Position 31
Proprietary Funds – Statement of Cash Flows 32
Notes to Financial Statements 33
Required Supplementary Information
Schedule of proportionate share of the net pension liability 59
Schedule of contributions to pensions 60
Other Supplementary Information
General Fund – Schedule of Revenues and Expenditures Compared with Budget 61
Combining and Individual Nonmajor Fund Financial Statements
Nonmajor Governmental Funds – Combining Balance Sheet 71
Nonmajor Capital Projects Funds – Combining Balance Sheet 72
Nonmajor Special Revenue Funds – Combining Balance Sheet 73
Nonmajor Governmental Funds – Combining Statements of Revenues, Expenditures
and Changes in Fund Balance 74
Nonmajor Capital Projects Funds – Combining Statements of Revenues, Expenditures
and Changes in Fund Balance 75
Nonmajor Special Revenue Funds – Combining Statements of Revenues,
Expenditures and Changes in Fund Balance
76
Enterprise Fund – Water and Wastewater System:
Schedule of Revenues and Expenses – Budgeted and Actual 77
Schedule of Operating Expenses – Budgeted and Actual 78
Enterprise Fund – Sanitation Services:
Schedule of Revenues and Expenses – Budgeted and Actual 81
Schedule of Operating Expenses – Budgeted and Actual 82
Enterprise Fund – Stormwater Utility Fund:
Schedule of Revenues and Expenses – Budgeted and Actual 84
Schedule of Operating Expenses – Budgeted and Actual 85
Schedule required by State Law
Schedule of Fines, Assessments, and Surcharges
86
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
TABLE OF CONTENTS
Table Page
STATISTICAL SECTION (UNAUDITED)
Net position by component 1 87
Changes in net position 2 88
Fund balances, governmental funds 3 90
Changes in fund balances, governmental funds 4 91
Assessed value and estimated actual value of taxable property 5 92
Direct and overlapping property tax rates 6 93
Principal property tax payers 7 94
Property tax levies and collections 8 95
Business licenses/franchise fees 9 96
Number of utility customers 10 97
Ten largest water and wastewater customers 11 98
Ratio of outstanding debt by type 12 99
Ratios of general bonded debt outstanding 13 100
Direct and overlapping governmental activities debt 14 101
Legal debt margin information 15 102
Pledged-revenue bond coverage 16 103
Economic statistics 17 104
Principal employers 18 105
Full-time budget equivalent employees by fund/function/department 19 106
Operating indicators by function/program 20 107
Capital asset statistics by function/program 21 108
Enterprise funds rates and charges 22 109
Enterprise funds history of rates and charges 23 110
INTRODUCTORY
SECTION
North
Augusta
Sot Hi Carolina's Rivet-front
May 31, 2018
Honorable Mayor,
Members of City Council, and
Citizens of North Augusta North Augusta, South Carolina 29841
Ladies and Gentlemen:
State law requires that all general purpose local governments publish a complete set of financial statements presented in conformity with generally accepted accounting principles (GAAP) and audited in accordance with generally accepted auditing standards (GAAS) by a firm of licensed certified public accountants. Pursuant to
that requirement, we hereby issue the comprehensive annual financial report of the City of North Augusta (the
“City”) for the fiscal year ended December 31, 2017.
Management assumes full responsibility for the completeness and reliability of the information contained in this report based upon a comprehensive framework of internal controls that it has established for this purpose.
Because the cost of internal controls should not exceed anticipated benefits, the objective is to provide
reasonable, rather than absolute, assurance that the financial statements are free of any material misstatements.
The City’s financial statements have been audited by Cherry Bekaert LLP, a firm of licensed certified public accountants. The goal of the independent audit is to provide reasonable assurances the financial statements of
the City, for the fiscal year ended December 31, 2017, are free of material misstatement. The independent
audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial
statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. The independent auditor has rendered an unmodified opinion that the City of North Augusta’s financial statements, for the fiscal year ended December 31, 2017, are
fairly presented in accordance with GAAP. The independent auditor’s report is presented as the first
component of the financial section of this report.
GAAP requires that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management’s Discussion and Analysis (MD&A). This Letter of
Transmittal is designed to complement the MD&A and should be read in conjunction with it. The City of
North Augusta’s MD&A can be found immediately following the report of the independent auditors.
Profile of the Government
The City of North Augusta, South Carolina was officially incorporated on April 11, 1906. The City is
strategically centered in the Augusta-Aiken metropolitan area and conveniently located along the South
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South Carolina 's Riverfront
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CITY OF NORTH AUGUSTA ORGANIZATION CHART – 2017
CITY COUNCILMAYOR
CITY ADMINISTRATOR
PLANNING & DEVELOPMENT
PLANNING
ZONING
PARKS, RECREATION & TOURISM
PARKS
RECREATION
TOURISM
FINANCE
ACCOUNTING
PURCHASING
TAXES
BUSINESS LICENSES
UTILITY BILLING
PUBLIC SAFETY
POLICE SERVICES
FIRE SUPPRESSION
CRIMINAL INVESTIGATIONS
COURT SERVICES
ANIMAL CONTROL
ENGINEERING & PUBLIC WORKS
ENGINEERING
BUILDING STANDARDS
STREETS & DRAINS
STORMWATER MANAGEMENT
PUBLIC SERVICES
UTILITY
OPERATIONS
SANITATION SERVICES
PROPERTY MAINTENANCE
WATER PRODUCTION
ECONOMIC DEVELOPMENT
HUMAN RESOURCES
PERSONNEL
RISK MANAGEMENT
Title VI
INFORMATION TECHNOLOGY
NETWORK SERVICES
GIS
CITIZENS OF NORTH AUGUSTA
CITY ATTORNEY MUNICIPAL JUDGES CITY CLERK
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CITY OF NORTH AUGUSTA, SOUTH CAROLINA
PRINCIPAL OFFICIALS
CITY COUNCIL
Robert A. Pettit, Mayor
(5-17 to 5-21)
Pat C. Carpenter, Councilwoman Kenneth J. McDowell, Councilman
(05-93 to 05-21) (11-98 to 05-21)
James M. Adams, Jr., Councilman Fletcher L. Dickert, Councilman
(11-02 to 05-19) (05-13 to 05-21)
David W. McGhee, Councilman J. Robert Brooks, Councilman
(05-13 to 05-21) (05-15 to 05-19)
CITY ADMINISTRATOR
B. Todd Glover
CITY CLERK
Donna B. Young
DEPARTMENT DIRECTORS
Cammie T. Hayes, Director of Finance
Richard L. Meyer, Director of Parks, Recreation & Tourism
James E. Sutton, Director of Public Services
John C. Thomas, Director of Public Safety
Thomas C. Zeaser, Director of Engineering & Public
Vacant, Director of Planning & Development
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North
Augusta vy
South Carolina 's Riverfront
FINANCIAL
SECTION
North `
Au g usta \
ticn tl Carolina'sliners FiiucrjrO u
North
Augusta vy
South Carolina 's Riverfront
Report of Independent Auditor
Honorable Mayor and Members of City Council
City of North Augusta, South Carolina
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, the business-type
activities, each major fund, and the aggregate remaining fund information of the City of North Augusta, South
Carolina (the “City”) as of and for the year ended December 31, 2017, and the related notes to the financial
statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance
with accounting principles generally accepted in the United States of America; this includes the design,
implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial
statements that are free from material misstatement, whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted our
audit in accordance with auditing standards generally accepted in the United States of America and the
standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller
General of the United States. Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of
the financial statements in order to design audit procedures that are appropriate in the circumstances, but not
for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we
express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and
the reasonableness of significant accounting estimates made by management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit
opinions.
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective
financial position of the governmental activities, the business-type activities, each major fund, and the aggregate
remaining fund information of the City, as of December 31, 2017, and the respective changes in financial
position, and, where applicable, cash flows thereof and the respective budgetary comparison for the General
Fund for the year then ended in accordance with accounting principles generally accepted in the United States
of America.
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Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s
discussion and analysis, the schedule of proportionate share of the net pension liability, and the schedule of
contributions to pensions, as listed in the table of contents, be presented to supplement the basic financial
statements. Such information, although not a part of the basic financial statements, is required by the
Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for
placing the basic financial statements in an appropriate operational, economic, or historical context. We have
applied certain limited procedures to the required supplementary information in accordance with auditing
standards generally accepted in the United States of America, which consisted of inquiries of management
about the methods of preparing the information and comparing the information for consistency with
management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained
during our audit of the basic financial statements. We do not express an opinion or provide any assurance on
the information because the limited procedures do not provide us with sufficient evidence to express an opinion
or provide any assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the City’s basic financial statements. The introductory section, combining and individual nonmajor fund
financial statements, budgetary comparison schedules, statistical section, and schedule of fines, assessments,
and surcharges are presented for purposes of additional analysis and are not a required part of the basic
financial statements.
The combining and individual nonmajor fund financial statements, budgetary comparison schedules, and schedule
of fines, assessments, and surcharges are the responsibility of management and were derived from and relate
directly to the underlying accounting and other records used to prepare the basic financial statements. Such
information has been subjected to the auditing procedures applied in the audit of the basic financial statements
and certain additional procedures, including comparing and reconciling such information directly to the underlying
accounting and other records used to prepare the basic financial statements or to the basic financial statements
themselves, and other additional procedures in accordance with auditing standards generally accepted in the
United States of America. In our opinion, the information is fairly stated in all material respects in relation to the
basic financial statements as a whole.
The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit
of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on
them.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated May 31, 2018, on our
consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain
provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is
to describe the scope of our testing of internal control over financial reporting and compliance and the results of
that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That
report is an integral part of an audit performed in accordance with Government Auditing Standards in
considering the City’s internal control over financial reporting and compliance.
Augusta, Georgia
May 31, 2018
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Report of Independent Auditor on Internal Control over Financial Reporting and on
Compliance and Other Matters Based on an Audit of Financial Statements
Performed in Accordance with Government Auditing Standards
Honorable Mayor and Members of City Council
City of North Augusta, South Carolina
We have audited, in accordance with the auditing standards generally accepted in the United States of America
and the standards applicable to financial audits contained in Government Auditing Standards issued by the
Comptroller General of the United States, the financial statements of the governmental activities, the business-
type activities, each major fund, and the aggregate remaining fund information of the City of North Augusta,
South Carolina (the “City”) as of and for the year ended December 31, 2017, and the related notes to the
financial statements, which collectively comprise the City’s basic financial statements, and have issued our
report thereon dated May 31, 2018.
Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City’s internal control over
financial reporting (“internal control”) to determine the audit procedures that are appropriate in the
circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of
expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an
opinion on the effectiveness of the City’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management or
employees, in the normal course of performing their assigned functions, to prevent, or detect and correct,
misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in
internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial
statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a
deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet
important enough to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this section
and was not designed to identify all deficiencies in internal control that might be material weaknesses or,
significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal
control that we consider to be material weaknesses. However, material weaknesses may exist that have not
been identified.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City’s financial statements are free from material
misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and
grant agreements, noncompliance with which could have a direct and material effect on the determination of
financial statement amounts. However, providing an opinion on compliance with those provisions was not an
objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no
instances of noncompliance or other matters that are required to be reported under Government Auditing
Standards.
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Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and
the result of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on
compliance. This report is an integral part of an audit performed in accordance with Government Auditing
Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not
suitable for any other purpose.
Augusta, Georgia
May 31, 2018
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North
Augusta vy
South Carolina 's Riverfront
MANAGEMENT’S DISCUSSION AND ANALYSIS
As management of the City of North Augusta (the “City”), we offer readers of the City’s financial statements this narrative overview and analysis of the financial activities of the City for the fiscal year
ended December 31, 2017. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal and financial
statements.
Financial Highlights
The following information highlights the most significant changes to the City’s financial position over the last year. Though not intended to be all-inclusive, this information provides a snapshot of the most
important changes in the City’s financial position over the last year:
• The assets and deferred outflows of resources of the City exceeded its liabilities and deferred inflows of resources at the close of the most recent fiscal year by $130,256,100 (net position). Of this amount, ($5,149,817), represents unrestricted net position, which may be used to meet the
government’s ongoing obligations to citizens and creditors. This number is negative following the implementation of Governmental Accounting Standards Board (“GASB”) Statement No. 68, which
required the City to recognize as a long term liability, its proportionate share of the net pension liability of the South Carolina Retirement System and the Police Officer Retirement System.
• The City’s total net position increased by $3,894,015
• At the close of the current fiscal year, the City’s governmental funds reported combined fund balances of $31,589,436, an increase of $16,634,396 in comparison with the prior year.
Approximately 8.31 percent of this amount, $2,625,000, is available for spending at the government’s discretion (unassigned fund balance).
• At the end of the current fiscal year, the unrestricted fund balance (the total of the committed,
assigned, and unassigned components of fund balance) for the general fund was $3,746,426 or 21.93 percent of total general fund expenditures.
• The City’s total outstanding long-term debt increased by $56,473,871. During May of 2017, the North Augusta Public Facilities Corporation, a blended component unit of the City established by
the City in December 2014 for the purpose of debt issuance related to construction and maintenance of buildings that are to be leased by the City, entered into an installment purchase
transaction in the principal amount of not exceeding $69,450,000 to construct and equip two parking decks, a stadium, conference facilities, a riverfront park, and certain roads, water, sewer
and related infrastructure (“Series 2017B”). Proceeds from this transaction were also used to refinance the municipal center capital lease and the Series 2017A revenue bonds. The City
continued to make draws on Series 2014A and 2015A South Carolina Waterworks and Sewer System Improvement Revenue Bond during the current year as well as made scheduled principal
and interest payments.
Overview of the Financial Statements
The discussion and analysis provided here are intended to serve as an introduction to the City’s basic financial statements. The City’s basic financial statements consist of three components: 1) government-
wide financial statements, 2) fund financial statements and 3) the notes to the financial statements. This report also contains other supplementary information.
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Government-Wide Financial Statements
The government-wide financial statements are designed to provide readers with a broad overview of the City’s finances in a manner similar to a private-sector business.
The statement of net position presents information on all of the City’s assets, liabilities, and deferred
inflows/outflows of resources with the difference reported as net position. Over time, increases and decreases in net position may serve as a useful indicator of whether the financial position of the City is
improving or deteriorating.
The statement of activities presents information showing how the City’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving
rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported for some items that will only result in cash flows in future fiscal periods (e.g., uncollected
taxes and earned but unused vacation leave).
Both of the government-wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that
are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the City include general government, public safety, public
works, and parks, recreation, and tourism. The business-type activities of the City include water and wastewater utility, sanitation services, and stormwater enterprise.
The government-wide financial statements include not only the City itself (known as the primary
government), but also a legally separate public facilities corporation for which the City is financially accountable. The corporation, although a legally separate entity, functions for all practical purposes as a
fund of the City and therefore has been included as an integral part of the primary government.
The government-wide financial statements can be found immediately following this discussion and analysis.
Fund Financial Statements
A fund is a grouping of related accounts that is used to maintain control over resources that have been
segregated for specific activities or objectives. The City, like other local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the
funds of the City can be divided into two categories: governmental funds and proprietary funds. The City does not have a fiduciary fund.
Governmental funds. Governmental funds are used to account for essentially the same functions
reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows
and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government’s near-term financing
requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar
information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government’s near-term financing
decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between
governmental funds and governmental activities.
The City maintains fourteen individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and
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changes in fund balance for the General Fund which is considered a major fund. Information is also presented separately for the Capital Projects Fund, Sales Tax III Fund, and North Augusta Public
Facilities Corporation which the City elects to present as major funds. Information from the other ten governmental funds are combined into a single aggregated presentation. Individual fund data for each of
these nonmajor governmental funds is provided in the form of combining statements in this report.
The City adopts an annual appropriated budget for its General Fund. A budgetary comparison statement has been provided for the General Fund to demonstrate compliance with the budget.
The basic governmental fund financial statements can be found immediately following the government-
wide financial statements.
Proprietary funds. The City maintains one type of proprietary fund. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements.
The City uses enterprise funds to account for its water, wastewater, sanitation, and stormwater operations as well as the Savannah Bluff Lock and Dam that was created for the purpose of maintaining the Augusta
pool on the Savannah River.
Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for the water,
wastewater, sanitation and stormwater operations, all of which are considered to be major funds of the City. Savannah Bluff Lock and Dam is a nonmajor fund. The proprietary fund financial statements can
be found immediately following the governmental fund financial statements.
Notes to the Financial Statements. The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to
the financial statements can be found immediately following the proprietary fund financial statements.
Other Financial Information. In addition to the basic financial statements, the accompanying notes, and the required supplementary information, this report presents certain financial data of individual fund
statements and schedules.
Government-Wide Financial Analysis
As noted earlier, net position over time may serve as a useful indicator of a government’s financial position. In the case of the City, assets and deferred outflows of resources exceeded liabilities and
deferred inflows of resources by $130,256,100 at the close of the most recent fiscal year.
City of North Augusta's Net Position
2017 2016 2017 2016 2017 2016
Current and other assets 37,714,745$ 16,146,651$ 20,381,858$ 21,814,564$ 58,096,603$ 37,961,215$
Capital assets 116,897,141 75,326,254 77,687,822 74,288,776 194,584,963 149,615,030
Total Assets 154,611,886 91,472,905 98,069,680 96,103,340 252,681,566 187,576,245
Deferred outflows of resources 2,648,598 2,275,120 1,210,235 1,051,292 3,858,833 3,326,412
Long-term liabilities outstanding 71,477,591 15,720,883 22,083,908 21,366,745 93,561,499 37,087,628
Other liabilities outstanding 21,550,368 15,832,578 11,142,522 11,572,939 32,692,890 27,405,517
Total Liabilities 93,027,959 31,553,461 33,226,430 32,939,684 126,254,389 64,493,145
Deferred inflow of resources 14,357 22,765 15,553 24,662 29,910 47,427
Net position:
Net investment in capital assets 46,115,747 60,261,553 55,927,179 53,203,765 102,042,926 113,465,318
Restricted 23,744,254 7,616,189 9,618,737 11,374,284 33,362,991 18,990,473
Unrestricted (5,641,833) (5,705,943) 492,016 (387,763) (5,149,817) (6,093,706)
Total Net Position 64,218,168$ 62,171,799$ 66,037,932$ 64,190,286$ 130,256,100$ 126,362,085$
Governmental Activities Business-type Activities Total
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By far, the largest portion of the City’s net position (78.34 percent) reflects its investment in capital assets (e.g., land, land improvements, rights-of-way and easements, buildings, machinery and equipment,
furniture and fixtures, vehicles, infrastructure, system improvements, PSA capital, and construction in progress), less any related outstanding debt to acquire those assets. The City uses these capital assets
to provide a variety of services to its citizens. Accordingly, these assets are not available for future spending. Although the City’s investment in capital assets is reported net of related debt, it should be
noted that the resources needed to repay this debt must be provided from other sources since the capital assets themselves cannot be used to liquidate these liabilities.
An additional portion of the City’s net position (25.61 percent) represents resources that are subject to
external restrictions on how they may be used. The remaining balance of ($5,641,833) may be used to meet the government’s ongoing obligations to citizens and creditors but is currently negative.
At the end of the current fiscal year, the City is able to report positive balances in two categories of net
position, both for the government as a whole, as well as for its separate governmental and business-type activities. The same categories were also positive in the prior year. Unrestricted net position is negative in
the current year primarily because of GASB Statements 68 and 71 requiring the City to accrue net pension liabilities for governmental and business type activities.
Governmental Activities
During 2017, governmental activities increased the City’s net position by $2,046,369, thereby accounting
for 52.55 percent of the total growth in net position. Governmental activities revenues increased $5,343,514 from 2016 to 2017. Charges for services include: business license revenues, franchise fees,
construction permits and public safety fines. These revenues represent 32.99 percent of total revenues for governmental activities and are predominantly elastic in nature and vary with economic trends.
Property taxes represent 31.34 percent of total revenues for governmental activities and increased by $984,030 from the prior year.
Also during 2017, governmental activities expenses increased by $5,368,469. General government
expenses increased by $2,955,829, or 65.41 percent primarily due to increases in capital purchases to include the construction projects at Riverside Village. Expenses for the other functions had minimal
changes from the prior year.
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City of North Augusta's Changes in Net Position
2017201620172016 2017 2016
Revenues:
Program revenues:
Charges for services 8,576,954$ 8,261,176$ 14,701,470$ 14,161,988$ 23,278,424$ 22,423,164$
Operating grants and contributions 1,083,944 813,941 10,161 - 1,094,105 813,941
Capital grants and contributions 207,768 - 103,591 124,408 311,359 124,408
General revenues:-
Property taxes 8,146,680 7,162,650 - - 8,146,680 7,162,650
Other taxes 3,900,461 3,655,347 - - 3,900,461 3,655,347
Other 4,082,697 761,876 796,585 665,514 4,879,282 1,427,390
Total Revenues 25,998,504 20,654,990 15,611,807 14,951,910 41,610,311 35,606,900
Expenses:
General government 7,474,923 4,519,094 - - 7,474,923 4,519,094
Public safety 8,736,202 8,473,548 - - 8,736,202 8,473,548
Public works 2,695,126 580,327 - - 2,695,126 580,327
Recreation and parks 4,913,582 5,061,480 - - 4,913,582 5,061,480
Interest and fiscal charges on debt service 338,132 155,047 - - 338,132 155,047
Water and wastewater - - 8,359,555 7,745,232 8,359,555 7,745,232
Sanitation - - 4,536,142 4,594,016 4,536,142 4,594,016
Stormwater - - 638,634 541,495 638,634 541,495
Savannah Bluff Lock and Dam - - 24,000 24,000 24,000 24,000
Total Expenses 24,157,965 18,789,496 13,558,331 12,904,743 37,716,296 31,694,239
Increase in net position before transfers 1,840,539 1,865,494 2,053,476 2,047,167 3,894,015 3,912,661
Transfers 205,830 540,943 (205,830) (540,943) - -
Increase in net position 2,046,369 2,406,437 1,847,646 1,506,224 3,894,015 3,912,661
Net position-beginning of year 62,171,799 59,765,362 64,190,286 62,684,062 126,362,085 122,449,424
Prior period adjustment - - - - - -
Net position-end of year 64,218,168$ 62,171,799$ 66,037,932$ 64,190,286$ 130,256,100$ 126,362,085$
Governmental Activities Business-type Activities Total
Business-type Activities
Business-type activities increased the City’s net position by $1,847,646 accounting for 47.45 percent of
the total growth in net position. Water and stormwater rates remained unchanged while Council approved a 0.16/1,000 gallons rate increase to the wastewater rate structure and a 0.19/cubic yard (inside City) and
0.29/cubic yard (outside City) increase to commercial dumpsters. Council also approved implementation of a $25 electronic disposal fee per item. Water sales decreased slightly for the current year and were
under budget by approximately $35,000 and sewer sales increased over $300,000. Fees for sanitation services and recycling increased $108,508 from the prior year due to additional customers and special
charges. Stormwater fees increased $11,004 due to additional customers. Expenses for the Water and Wastewater System increased by $614,323 from the prior year primarily due
to increased due to increased personnel costs, infrastructure upgrades, and increased utility costs. In
18
2017, the expenses for the Sanitation Services Fund showed minimal change from the prior year. The expenses in the Stormwater Utility Fund increased by $97,139 primarily due to increased personnel
costs. A total of $24,000 was expended from the Savannah Bluff Lock and Dam Fund. This expense for consulting services was intended to gain the necessary Congressional approvals to expedite the funding
for the improvements to the lock and dam. Financial Analysis of the Government’s Funds
As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements.
Governmental Funds. The focus of the City’s governmental funds is to provide information on
near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City’s financing requirements. In particular, unassigned fund balance may serve as
a useful measure of a government’s net resources available for spending at the end of the fiscal year.
At December 31, 2017, the City’s governmental funds reported combined fund balances of
$31,589,436 an increase of $16,634,396 from the prior year. Approximately 8.31 percent of this amount constitutes unassigned fund balance, which is available for spending at the City’s
discretion. Unassigned fund balance increased by $150,000 for the year primarily due to the City’s practice to increase the unassigned fund balance in the General Fund as the budget
increases for the General Fund each year.
The General Fund is the chief operating fund of the City. At the end of the current fiscal year the unassigned fund balance of the General Fund was $2,625,000, while total fund balance was $3,853,869.
As a measure of the General Fund’s liquidity, it may be useful to compare unassigned and total fund
balance to total fund expenditures. Unassigned fund balance represents 15.36 percent of total General Fund expenditures, while total fund balance represents 22.56 percent of those same expenditures.
19
Fund balance for the City’s other governmental funds totaled $27,735,567 for 2017, an increase
of $16,843,365 related to sales taxes received during the year that are to be used for upcoming capital projects as well as bond proceeds from Series 2017B which is further discussed in Note 6
of this report.
Proprietary funds. The City’s proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail. Factors concerning the finances of
these funds have been addressed in the discussion of the City’s business-type activities. General Fund Budgetary Highlights
There were no differences between the original budget and the final amended budget for the fiscal year ending December 31, 2017.
Property tax revenues exceeded budget by approximately $135,000. Additionally, revenues for licenses
and building permits exceeded budgeted revenues by more than $358,000, reflective of increased local business revenues and an increase in construction within the City to include Riverside Village. Charges
for services reflected a positive variance with budgeted revenues primarily related to additional sponsorships for the annual Jack-O-Lantern Jubilee festival and an increase in collections for City
tournaments.
General government expenditures were under budget primarily due to operating costs less than expected. The over-expenditures for public safety were due to increased personnel costs and the
purchase of vehicles and equipment with capital lease proceeds. Parks, Recreation, and Tourism costs for tournaments and festivals were more than expected but were offset by over budgeted revenues
mentioned above.
Capital Asset and Debt Administration Capital Assets. The City’s investment in capital assets for its governmental and business-type activities
as of December 31, 2017 amounts to $194,584,963 (net of accumulated depreciation). This investment in capital assets includes land, land improvements, rights-of-way and easements, buildings, machinery
and equipment, furniture and fixtures, infrastructure, system improvements, PSA capital, and construction in progress. The total increase in capital assets for the current fiscal year was approximately 30.06
percent. Additional information on the City’s capital assets can be found in Note 4 of this report.
20
City of North Augusta's Capital Assets
(net of depreciation)201720162017201620172016
Land 10,051,486$ 9,154,817$ 824,058$ 824,058$ 10,875,544$ 9,978,875$
Land improvements 6,688,718 6,654,320 - - 6,688,718 6,654,320
Right-of-way and easements 3,226,901 3,226,901 62,760 62,760 3,289,661 3,289,661
Buildings 35,614,317 36,361,279 3,113,498 3,349,131 38,727,815 39,710,410
Machinery and equipment 351,318 512,476 542,045 681,863 893,363 1,194,339
Furniture and fixtures 372,428 455,418 - - 372,428 455,418
Vehicles 3,403,958 3,579,557 1,107,954 1,264,241 4,511,912 4,843,798
Infrastructure 11,489,206 12,256,776 - - 11,489,206 12,256,776
System improvements - - 52,681,807 40,250,881 52,681,807 40,250,881
PSA capital - - 1,965,062 2,081,747 1,965,062 2,081,747
Construction in progress 45,698,809 3,124,710 17,390,638 25,774,095 63,089,447 28,898,805
Total Capital Assets 116,897,141$ 75,326,254$ 77,687,822$ 74,288,776$ 194,584,963$ 149,615,030$
Governmental Activities TotalBusiness-type Activities
Major capital asset events during the current fiscal year included the following:
• Purchase of various machinery and equipment for all departments
• Various projects related to streets, sidewalks, and storm drainage
• Completion of a raw water storage facility and continued construction on a water plant expansion
• Continued design, schematics, engineering services, and architectural services related to
Riverside Village as well as construction related to a stadium, parking facilities, conference center and infrastructure for the project area.
The City has committed over $13,000,000 to the continued construction of the water treatment plant,
stadium, and gyms at Riverview Park during 2017. Long-Term Debt. At the end of the current fiscal year, the City had total bonded debt outstanding of
$90,457,862. The City’s debt represents bonds secured solely by specified revenue sources.
City of North Augusta's Outstanding Debt
20172016 2017201620172016
Revenue bonds 69,475,000$ 10,166,337$ 20,982,862$ 20,299,376$ 90,457,862$ 30,465,713$
Capital leases 1,306,394 4,898,364 777,781 785,635 2,084,175 5,683,999
Total Outstanding Debt 70,781,394$ 15,064,701$ 21,760,643$ 21,085,011$ 92,542,037$ 36,149,712$
Governmental Activities Buisness-type Activities Total
The City’s total debt outstanding, less compensated absences, increased by $56,392,325 during the current fiscal year. This increase was attributed to continued drawdowns of two South Carolina
Waterworks and Sewer System Improvement Revenue Bonds, Series 2014A and 2015A for construction of a raw water storage facility and upgrade and expansion to the water treatment plant. This increase is
also attributed to an installment purchase revenue bond to construct and equip parking, stadium, conference, and park facilities as well as related infrastructure.
The City maintains an “A2” rating from Moody’s Investors Service for the taxable Series 2017B revenue
bond reported in governmental activities.
The City’s revenue bonds for business type activities were private issues and therefore not rated. The City’s debt coverage requirement increased to 1.92 in 2017. The City’s bond covenants require coverage
of 1.25 to issue additional bonds. Please refer to the pledged-revenue bond coverage table at the back of this report for additional information regarding the City’s revenue bond coverage.
Other long-term debt at the end of the current fiscal year included $2,084,175 in capital leases for
equipment and vehicles and long-term debt related to compensated absences amounting to $1,019,462 (not presented in the table above).
21
Additional information regarding the City’s capitalized lease obligations and long-term debt can be found in Notes 5 and 6 of this report.
Economic Factors and Next Year’s Budgets and Rates
The following economic factors currently affect the City and were considered in developing the
2018 fiscal year budget:
• The unemployment rate for Aiken County has been decreasing since 2011 and is
estimated at 4 percent for 2017 reflecting pre-recession unemployment rates.
• The 2017 budget reflects a year of reassessment in the millage rate of 70.50. The value of a mill has increased over 8 percent reflective of a recovering economy.
• Increases are expected in health insurance premiums, as well as pension and other employee benefit costs.
Additional information related to the local economy can be found in the transmittal letter of this report.
Request for Information
The financial report is designed to provide a general overview of the City’s finances for all those with an
interest in its finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Director of Finance, City of North Augusta,
P.O. Box 6400, North Augusta, SC 29861-6400.
22
BASIC FINANCIAL STATEMENTS
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
STATEMENT OF NET POSITION
DECEMBER 31, 2017
GovernmentalBusiness‐type
ActivitiesActivitiesTotal
ASSETS
Equity in pooled cash 3,605,943$ 5,153,330$ 8,759,273$
Investments 26,613,3672,501,45229,114,819
Receivables:
Taxes, net 118,155 - 118,155
Customers, net - 1,787,9581,787,958
Other 1,044,677 - 1,044,677
Notes - 25,000 25,000
Inventory - 225,578225,578
Restricted cash and investments 6,332,60310,662,55316,995,156
Capital assets, net:
Nondepreciable capital assets 58,977,196 18,277,45677,254,652
Depreciable capital assets, net 57,919,945 59,410,366117,330,311
Service rights, net - 25,987 25,987
Total Assets 154,611,886 98,069,680 252,681,566
DEFERRED OUTFLOWS OF RESOURCES
Pension experience differences 105,505 39,944145,449
Pension investment return 505,155 250,127755,282
Contributions to pension plan 573,396 281,903855,299
Change in proportionate share 249,871 113,734363,605
Assumption changes 1,214,671 524,5271,739,198
Total Deferred Outflows of Resources 2,648,598 1,210,235 3,858,833
LIABILITIES
Accounts payable 4,720,799 597,355 5,318,154
Accrued expenses 456,987 61,349518,336
Municipal court liability 31,093 - 31,093
Accrued interest payable 283,749 - 283,749
Payable from restricted resources:
Accounts payable 325 97,463 97,788
Retainage payable - 386,722386,722
Accrued bond interest - 27,559 27,559
Customer deposits - 532,072532,072
Unearned revenue 89,657479,733569,390
Noncurrent liabilities:
Due within one year 1,012,101 1,789,5522,801,653
Due in more than one year 70,465,490 20,294,35690,759,846
Net pension liability 15,967,758 8,960,26924,928,027
Total Liabilities 93,027,959 33,226,430 126,254,389
DEFERRED INFLOWS OF RESOURCES
Change in proportionate share 9,773 10,587 20,360
Pension experience differences 4,584 4,966 9,550
Total Deferred Inflows of Resources 14,357 15,553 29,910
NET POSITION
Net investment in capital assets 46,115,747 55,927,179 102,042,926
Restricted for:
Bond indentures - 8,747,074 8,747,074
Operations - Savannah Bluff Lock and Dam - 871,663 871,663
Victims assistance 107,443 - 107,443
Public safety - fire division 123,410 - 123,410
Capital projects 3,909,041 - 3,909,041
Special projects 19,604,360 - 19,604,360
Unrestricted (5,641,833) 492,016 (5,149,817)
Total Net Position 64,218,168$ 66,037,932$ 130,256,100$
The notes to the financial statements are an integral part of this statement.
23
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
STATEMENT OF ACTIVITIES
YEAR ENDED DECEMBER 31, 2017
OperatingCapital
Charges forGrants and Grants andGovernmental Business‐type
Functions/ProgramsExpensesServicesContributionsContributionsActivitiesActivitiesTotal
Governmental Activities:
General government 7,474,923$ 6,229,497$ 612,305$ 207,768$ (425,353)$ -$ (425,353)$
Public safety 8,736,2021,041,20267,807 - (7,627,193) - (7,627,193)
Public works 2,695,126158,147380,526 - (2,156,453) - (2,156,453)
Recreation and parks 4,913,5821,148,10823,306 - (3,742,168) - (3,742,168)
Interest and fiscal charges on debt service338,132 - - - (338,132) - (338,132)
Total Governmental Activities 24,157,965 8,576,954 1,083,944 207,768 (14,289,299) - (14,289,299)
Business-type Activities:
Water and wastewater 8,359,5559,459,054 - 103,591 - 1,203,090 1,203,090
Sanitation 4,536,1424,472,28110,161 - - (53,700) (53,700)
Stormwater utility 638,634770,135 - - - 131,501 131,501
Savannah Bluff Lock and Dam 24,000 - - - - (24,000) (24,000)
Total Business-type Activities 13,558,331 14,701,470 10,161 103,591 - 1,256,891 1,256,891
Total 37,716,296$ 23,278,424$ 1,094,105$ 311,359$ (14,289,299) 1,256,891 (13,032,408)
General Revenues:
Ad valorem property taxes 8,146,680 - 8,146,680
Local hospitality and accommodation taxes 790,749 - 790,749
Capital projects sales taxes 3,109,712 - 3,109,712
Interest on investments 423,369145,025 568,394
Gain on disposal of capital assets - 78,747 78,747
Miscellaneous 3,659,328572,813 4,232,141
Transfers 205,830 (205,830) -
Total General Revenues and Transfers 16,335,668 590,755 16,926,423
Change in net position 2,046,369 1,847,646 3,894,015
Net position, beginning of year 62,171,799 64,190,286126,362,085
Net position, end of year 64,218,168$ 66,037,932$ 130,256,100$
Net (Expense) Revenue and
Changes in Net PositionProgram Revenues
The notes to the financial statements are an integral part of this statement.
24
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
BALANCE SHEET
GOVERNMENTAL FUNDS
DECEMBER 31, 2017
SalesCapital North Augusta NonmajorTotal
GeneralTax IIIProjectsPublic FacilitiesGovernmentalGovernmental
FundFundFundCorporationFundsFunds
ASSETS
Equity in pooled cash 1,200,499$ -$ 426,714 489,060$ 1,489,670$ 3,605,943$
Investments 3,246,983 - 1,048,050 21,065,000 1,253,334 26,613,367
Receivables:
Taxes, net of allowance for doubtful accounts 118,155 - - - - 118,155
Grants 4,791 - - - - 4,791
Other 317,144 722,742 - - - 1,039,886
Restricted cash and investments 107,443 1,667,332 - 1,825,821 2,732,007 6,332,603
Total Assets 4,995,015$ 2,390,074$ 1,474,764$ 23,379,881$ 5,475,011$ 37,714,745$
LIABILITIES
Accounts payable 544,023$ 365,996$ 32,320$ 3,775,521$ 3,264$ 4,721,124$
Accrued salaries, wages, and employee benefits 456,439 - - - 548 456,987
Municipal court liability 31,093 - - - - 31,093
Unearned revenue - assessment fees - - - - 83,772 83,772
Total Liabilities 1,031,555 365,996 32,320 3,775,521 87,584 5,292,976
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - property taxes 103,706 722,742 - - - 826,448
Unavailable revenue - other 5,885 - - - - 5,885
Total Deferred Inflows of Resources 109,591 722,742 - - - 832,333
FUND BALANCES
Restricted for:
Capital projects - 1,301,336 - - 2,607,705 3,909,041
Victim's assistance107,443 - - - - 107,443
Public Safety - fire division- - - - 123,410 123,410
Special projects- - - 19,604,360 - 19,604,360
Committed for:
Capital projects 995,516 - 1,442,444 - 947,879 3,385,839
Parks, recreation and tourism- - - - 18,380 18,380
Special projects- - - - 1,323,010 1,323,010
Housing and development125,910 - - - - 125,910
Assigned for:
Capital projects- - - - 367,043 367,043
Unassigned2,625,000 - - - - 2,625,000
Total Fund Balances 3,853,869 1,301,336 1,442,444 19,604,360 5,387,427 31,589,436
Total Liabilities, Deferred Inflows
of Resources, and Fund Balances 4,995,015$ 2,390,074$ 1,474,764$ 23,379,881$ 5,475,011$ 37,714,745$
The notes to the financial statements are an integral part of this statement.
25
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
RECONCILIATION OF THE BALANCE SHEET TO THE STATEMENT OF NET POSITION
DECEMBER 31, 2017
Ending fund balance - governmental funds 31,589,436$
Amounts reported for governmental activities in the statement of net position are different because:
Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the funds.
Historical costs of capital assets 156,042,446
Accumulated depreciation (39,145,305)
Deferred outflows and inflows of resources related to pension are applicable to future
periods and, therefore, are not reported in the funds.
Deferred outflows of resources related to pensions 2,648,598
Deferred inflows of resources related to pensions (14,357)
Capital leases (1,306,394)
Bonds payable (69,475,000)
Accrued vacation (696,197)
Accrued interest (283,749)
Net pension liability (15,967,758)
Amounts to be collected are not available to pay for the current period's expenditures
and therefore are deferred in the funds 826,448
Net Position of Governmental Activities 64,218,168$
Long-term liabilities and related accruals are not due and payable in the current period and, therefore, are not reported in
the funds.
The notes to the financial statements are an integral part of this statement.
26
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
YEAR ENDED DECEMBER 31, 2017
SalesCapitalNorth Augusta NonmajorTotal
General Tax IIIProjectsPublic FacilitiesGovernmentalGovernmental
Fund Fund FundCorporationFundsFunds
Revenues:
Ad valorem property tax6,784,360$ -$ 47,822$ -$ 613,831$ 7,446,013$
Sales taxes- 3,109,712 - - - 3,109,712
Local hospitality and accommodation taxes- - - - 790,749 790,749
Licenses and permits6,229,497 - - - - 6,229,497
Fines and forfeitures978,626 - - - - 978,626
Charges for services1,291,321 - - - - 1,291,321
Intergovernmental719,347 - - 3,018,138 442,107 4,179,592
Interest earnings44,9138,935 12,137 311,202 46,182 423,369
Miscellaneous571,492 - - - 5,415 576,907
Total Revenues16,619,556 3,118,647 59,959 3,329,340 1,898,284 25,025,786
Expenditures:
Current:
General government3,091,327- 29,375 247,131 38,612 3,406,445
Public safety7,865,896- - - 55,913 7,921,809
Public works1,500,871- - - 14,452 1,515,323
Parks, recreation and tourism4,083,409 - 1,100 - 1,080 4,085,589
Capital outlay- 3,322,06984,620 41,940,712 414,951 45,762,352
Debt service:
Capital lease payments 524,152 - - - 3,466,970 3,991,122
Principal retirements - - - 12,573,657 - 12,573,657
Interest and fiscal charges 20,788 - - 1,641,196 50,686 1,712,670
Bond issuance costs - - - 1,495,554 - 1,495,554
Total Expenditures 17,086,443 3,322,069 115,095 57,898,250 4,042,664 82,464,521
Excess (deficiency) of revenues over expenditures (466,887) (203,422) (55,136) (54,568,910) (2,144,380) (57,438,735)
Other Financing Sources (Uses):
Inception of capital lease obligation 473,983 - - - - 473,983
Issuance of bonds - - - 71,882,320 - 71,882,320
Insurance proceeds - - 178,260 - - 178,260
Transfers in 578,643 - 794,708 5,808,606 3,517,656 10,699,613
Transfers out (794,708) (3,000,000) - (3,517,656) (1,848,681) (9,161,045)
Total Other Financing Sources (Uses)257,918 (3,000,000) 972,968 74,173,270 1,668,975 74,073,131
Net change in fund balance (208,969) (3,203,422) 917,832 19,604,360 (475,405) 16,634,396
Fund balance, beginning of year 4,062,838 4,504,758 524,612 - 5,862,832 14,955,040
Fund balance, end of year 3,853,869$ 1,301,336$ 1,442,444$ 19,604,360$ 5,387,427$ 31,589,436$
The notes to the financial statements are an integral part of this statement.
27
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES
YEAR ENDED DECEMBER 31, 2017
Net change in fund balances - total governmental funds 16,634,396$
Amounts reported for governmental activities in the statement of activities are different because:
Governmental fund reports capital outlays as expenditures. However, in the statements of
activities the cost of these assets is allocated over their estimated useful lives and
reported as depreciation expense.
Capital outlay 46,334,221
Transfer of capital asset to enterprise funds (1,332,738)
Depreciation on general government assets (3,420,049)
Net effect on disposal of capital assets (10,547)
41,570,887
The issuance of long-term debt (e.g., bonds, leases) provides current financial resources
to governmental funds, while the repayment of the principal of long-term debt consumes
the current financial resources of governmental funds. Neither transaction, however,
has any effect on net assets. Also, governmental funds report the effect of issuance costs,
premiums, and similar items when debt is first issued, whereas these amounts are deferred
and amortized in the statement of activities. This amount is the net effect of these
differences in the treatment of long-term debt and related accounts.
Issuance of long-term debt (71,882,320)
Current year principal repayments 12,573,657
Compensated absences (40,014)
Principal payments on capital leases 4,065,952
Proceeds from capital lease (473,983)
(55,756,708)
In the fund financial statements, interest expense on long-term debt is reported in the period
that the current financial resources are used. In the statement of activities, interest
expense on long-term debt is recorded as the expense is incurred. This amount is the
difference between recording interest as accrued rather than as paid.(266,659)
Because some revenues will not be collected for several months after the City's
fiscal year end they are not considered "available" revenues in the governmental funds.700,667
In the fund financials, contributions to pension plans are expensed when paid. In the
statement of activities, pension expense is recognized for the change in the City's
proportionate share of the collective net pension liability and related deferred inflows and
outflows (836,214)
Change in net position of governmental activities 2,046,369$
The notes to the financial statements are an integral part of this statement.
28
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE ‐
BUDGET AND ACTUAL ‐ GENERAL FUND
YEAR ENDED DECEMBER 31, 2017
2017
OriginalOver
and Final (Under)
BudgetActualBudget
Revenues:
Ad valorem property taxes6,649,523$ 6,784,360$ 134,837$
Licenses and permits5,871,000 6,229,497 358,497
Fines and forfeitures1,097,153 978,626 (118,527)
Charges for services1,265,660 1,291,321 25,661
Intergovernmental754,529 719,347 (35,182)
Interest earnings40,000 44,913 4,913
Miscellaneous559,996 571,492 11,496
Total Revenues16,237,861 16,619,556 381,695
Expenditures:
Current:
General government3,217,030 3,091,327 (125,703)
Public safety7,522,432 7,865,896 343,464
Public works1,469,742 1,500,871 31,129
Parks, recreation and tourism3,975,471 4,083,409 107,938
Capital lease payments631,829 524,152 (107,677)
Interest and fiscal charges- 20,788 20,788
Total Expenditures16,816,504 17,086,443 269,939
Excess (deficiency) of revenues over expenditures(578,643) (466,887) 111,756
Other Financing Sources:
Proceeds from capital lease obligations- 473,983 473,983
Transfers in578,643 578,643 -
Transfers out- (794,708) (794,708)
Total Other Financing Sources578,643 257,918 (320,725)
Net change in fund balance-$ (208,969) (208,969)$
Fund balance, beginning of year 4,062,838
Fund balance, end of year 3,853,869$
The notes to the financial statements are an integral part of this statement.
29
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
DECEMBER 31, 2017
Nonmajor Fund
Water and
Wastewater SanitationStormwaterSavannah BluffTotal
System ServicesUtilityLock and Dam Enterprise Funds
ASSETS
Current Assets:
Equity in pooled cash3,110,348$ 1,679,595$ 363,387$ -$ 5,153,330$
Restricted cash and investments2,345,331- - 871,6633,216,994
Investments278,5041,468,296754,652- 2,501,452
Customer accounts receivable1,648,450139,508- - 1,787,958
Note receivable25,000- - - 25,000
Inventory225,578 - - - 225,578
Total Current Assets7,633,211 3,287,399 1,118,039 871,663 12,910,312
Non-current Assets:
Restricted cash and investments 7,445,559 - - - 7,445,559
Capital Assets
Non-depreciable 17,044,46091,235 1,141,761 - 18,277,456
Depreciable, net 54,779,3542,779,5291,851,483 - 59,410,366
Service Rights, net 25,987 - - - 25,987
Total Non-current Assets 79,295,360 2,870,764 2,993,244 - 85,159,368
Total Assets 86,928,571 6,158,163 4,111,283 871,663 98,069,680
DEFERRED OUTFLOWS OF RESOURCES
Pension experience differences 20,74016,132 3,072 - 39,944
Pension investment return129,874101,01319,240 - 250,127
Contributions to pension plan146,373113,84521,685 - 281,903
Change in proportionate share59,05545,9318,748 - 113,734
Assumption changes272,351211,82840,348 - 524,527
Total Deferred Outflows of Resources 628,393488,74993,093- 1,210,235
LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND NET POSITION
Current Liabilities:
Accounts payable 346,006 108,009 143,340 - 597,355
Accrued expenses187,863172,44224,309- 384,614
Current portion of capital leases payable117,880243,084- - 360,964
Unearned revenue23,515 - - - 23,515
Payable from restricted assets:
Accounts payable97,463- - - 97,463
Retainage payable386,722- - - 386,722
Accrued bond interest27,559- - - 27,559
Current portion of revenue bonds payable1,105,323 - - - 1,105,323
Customer deposits532,072- - - 532,072
Total Current Liabilities2,824,403 523,535 167,649 - 3,515,587
Non-current Liabilities:
Capital leases payable104,839311,978- - 416,817
Revenue bonds payable19,877,539- - - 19,877,539
Net pension liability4,652,4473,618,570689,252- 8,960,269
Unearned revenue456,218- - - 456,218
Total Non-current Liabilities25,091,043 3,930,548 689,252 - 29,710,843
Total Liabilities 27,915,446 4,454,083 856,901 - 33,226,430
DEFERRED INFLOWS OF RESOURCES
Change in proportionate share 5,498 4,275 814- 10,587
Pension experience differences2,579 2,005 382 - 4,966
Total Deferred Inflows of Resources 8,077 6,280 1,196 - 15,553
Net Position:
Net investment in capital assets50,618,233 2,315,702 2,993,244 - 55,927,179
Restricted for debt service8,747,074 - - - 8,747,074
Restricted for operations- - - 871,663 871,663
Unrestricted268,134 (129,153) 353,035 - 492,016
Total Net Position 59,633,441$ 2,186,549$ 3,346,279$ 871,663$ 66,037,932$
Major Funds
Business‐type Activities
The notes to the financial statements are an integral part of this statement.
30
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
PROPRIETARY FUNDS
YEAR ENDED DECEMBER 31, 2017
Business‐type Activities
Nonmajor Fund
Water andTotal
Wastewater SanitationStormwaterSavannah BluffEnterprise
System ServicesUtility FundLock and Dam Funds
Operating Revenues:
Charges for services and fees9,459,054$ 4,045,845$ 770,135$ -$ 14,275,034$
Sale of recyclables- 426,436 - - 426,436
Other507,335 53,305 12,173 - 572,813
Total Operating Revenues9,966,389 4,525,586 782,308 - 15,274,283
Operating Expenses:
Finance520,188 - - - 520,188
Administration926,102 - - - 926,102
Operations and Maintenance4,281,487 2,355,869 555,331 24,0007,216,687
Production and Treatment1,445,335 - - - 1,445,335
Material Recovery Facility- 1,465,494 - - 1,465,494
Depreciation and amortization1,050,929 682,703 83,303 - 1,816,935
Total Operating Expenses8,224,041 4,504,066 638,634 24,000 13,390,741
Operating income (loss)1,742,348 21,520 143,674 (24,000) 1,883,542
Nonoperating Revenues (Expenses)
Intergovernmental - 10,161 - - 10,161
Interest income 108,509 18,602 8,407 9,507 145,025
Interest expense and fiscal charges (135,514) (32,076) - - (167,590)
Gain (loss) on disposal of capital assets 26,869 51,878 - - 78,747
Total Nonoperating Revenues (136) 48,565 8,407 9,507 66,343
Income (loss) before contributions and transfers 1,742,212 70,085 152,081 (14,493) 1,949,885
Capital contributions 479,544 - 956,785 - 1,436,329
Transfers out (1,383,395) (155,173) - - (1,538,568)
Change in net position 838,361 (85,088) 1,108,866 (14,493) 1,847,646
Net position, beginning of year 58,795,080 2,271,637 2,237,413 886,156 64,190,286
Net position, end of year 59,633,441$ 2,186,549$ 3,346,279$ 871,663$ 66,037,932$
Major Funds
The notes to the financial statements are an integral part of this statement.
31
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
YEAR ENDED DECEMBER 31, 2017
Business‐type Activities
Nonmajor Fund
Water andTotal
Wastewater SanitationStormwaterSavannah BluffEnterprise
System ServicesUtility FundLock and Dam Funds
Cash flows from operating activities:
Cash received from customers 9,867,034$ 4,518,934$ 782,308$ -$ 15,168,276$
Cash paid for or on behalf of employees (2,708,312) (2,041,618) (293,322) - (5,043,252)
Cash paid for goods and services (5,397,561) (1,597,982) (82,669) (24,000) (7,102,212)
Net cash from operating activities 1,761,161 879,334 406,317 (24,000) 3,022,812
Cash flows from noncapital financing activities:
Transfers out to other funds (1,690,222) (155,173) - - (1,845,395)
Transfers in from other funds 306,827 - - - 306,827
Net cash from noncapital financing activities (1,383,395) (155,173) - - (1,538,568)
Cash flows from capital and related financing activities:
Purchase and construction of capital assets (3,303,248) (289,534) (185,139) - (3,777,921)
Proceeds received from sales of capital assets 27,638 51,878 - - 79,516
Proceeds received from issuance of revenue bonds 2,059,767 - - - 2,059,767
Principal paid on revenue bonds (1,376,281) - - - (1,376,281)
Proceeds received from capitalized leases - 289,534 - - 289,534
Principal paid on capitalized leases (27,639) (269,749) - - (297,388)
Proceeds received from intergovernmental activities - 10,161 - - 10,161
Interest expense (135,514) (32,076) - - (167,590)
Net cash from capital and related financing activities (2,755,277) (239,786) (185,139) - (3,180,202)
Cash flows from investing activities:
Interest on investments 108,509 18,602 8,407 9,507 145,025
Net cash from investing activities 108,509 18,602 8,407 9,507 145,025
Net change in cash and cash equivalents (2,269,002) 502,977 229,585 (14,493) (1,550,933)
Cash and cash equivalents, beginning of year 15,448,744 2,644,914 888,454 886,156 19,868,268
Cash and cash equivalents, end of year 13,179,742$ 3,147,891$ 1,118,039$ 871,663$ 18,317,335$
Reconciliation of operating income (loss) to net
cash from operating activities:
Operating income (loss)1,742,348$ 21,520$ 143,674$ (24,000)$ 1,883,542$
Adjustments to reconcile operating income (loss) to net cash
from operating activities:
Depreciation and amortization1,050,929 682,703 83,303 - 1,816,935
Bad debt expense30,787 - - - 30,787
Change in assets and liabilities:
Increase in accounts receivable(126,932) (6,652) - - (133,584)
Decrease in notes receivable25,000 - - - 25,000
Increase in inventory(42,930) - - - (42,930)
Increase (decrease) in accounts payable(996,204) (13,728) 139,242 - (870,690)
Decrease in retainage payable(154,024) - - - (154,024)
Increase in customer deposits25,816 - - - 25,816
Increase in accrued salaries, wages, and
employee benefits32,112 17,936 6,278 - 56,326
Decrease in unearned revenue(54,026) - - - (54,026)
Pension deferred inflows / outflows and liability228,285 177,555 33,820 - 439,660
Total Adjustments18,813 857,814 262,643 - 1,139,270
Net cash from operating activities1,761,161$ 879,334$ 406,317$ (24,000)$ 3,022,812$
Noncash investing, capital and financing activities:
Contributed capital assets 479,544$ -$ 956,785$ -$ 1,436,329$
Total noncash investing, capital and financing 479,544$ -$ 956,785$ -$ 1,436,329$
Reconciliation of cash and cash equivalents:
Equity in pooled cash 3,110,348$ 1,679,595$ 363,387$ -$ 5,153,330$
Investments 278,504 1,468,296 754,652 - 2,501,452
Current restricted assets 2,345,331 - - 871,663 3,216,994
Non-current restricted assets 7,445,559 - - - 7,445,559
Cash and cash equivalents 13,179,742$ 3,147,891$ 1,118,039$ 871,663$ 18,317,335$
Major Funds
The notes to the financial statements are an integral part of this statement.
32
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2017
Note 1—Summary of significant accounting policies
A. Description of government-wide financial statements
The government-wide financial statements (i.e. the Statement of Net Position and the Statement of Activities)
report information on all of the nonfiduciary activities of the primary government and its component units.
Governmental activities, which normally are supported by taxes, intergovernmental revenues, and other
nonexchange transactions, are reported separately from business-type activities, which rely to a significant
extent, on fees and charges to external customers for support. Likewise, the primary government is reported
separately from certain legally separate component units for which the primary government is financially
accountable.
B. Financial reporting entity
The City of North Augusta, South Carolina (the “City”) (the primary government) was officially incorporated on
April 11, 1906. The City has a Mayor-Council form of government. City Council is composed of seven members
elected at large on a partisan basis. City Council is the legally constituted law-making and policy-making body
for the City.
The reporting entity of the City, for financial purposes, includes all the funds relevant to the operations of the
City of North Augusta, South Carolina. The City is also required to include in its financial statements those
separately-administered organizations (component units) with which the City has significant operation or
financial relationships. The criteria for including organizations as component units within the City’s reporting
entity include whether the organization is legally separate and whether the City holds the corporate powers,
whether the City appoints a majority of the organization’s board and is able to impose its will, and the ability of
the organization to impose a financial benefit or burden on the City (“financial accountability”).
Blended Component Unit – The North Augusta Public Facilities Corporation (the “Corporation”) was established
by the City on December 2, 2014 primarily to issue debt related to construction and maintenance of buildings
that are to be leased by the City. The Corporation is a legally separate nonprofit organization. The Corporation
is governed by a five member board of directors comprised of the City’s Mayor and four City citizens. The City’s
Clerk and Finance Director serve as the respective Secretary and Treasurer of the Corporation. The City has
determined it is financially accountable for the Corporation, and the Corporation’s outstanding debt is expected
to be repaid entirely with resources of the City. Based on these factors, management has determined the
Corporation is appropriately presented as a blended component unit in the City’s financial statements. The
Corporation is reported as a debt service fund and does not issue separate financial statements.
C. Measurement focus, basis of accounting, and financial statement presentation
Government-wide and Fund Financial Statements – The City government-wide financial statements include a
Statement of Net Position and a Statement of Activities. These statements present summaries of governmental
and business-type activities for the City accompanied by a total column. Governmental activities, which normally
are supported by taxes and intergovernmental revenues, are reported separately from business-type activities,
which rely to a significant extent, on fees and charges for support.
The Statement of Activities demonstrates the degree to which the direct expenses of a given function or
segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific
function or segment. Program revenues include 1) charges to customers or applicants who purchase, use or
directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and
contributions that are restricted to meeting the operational or capital requirements of a particular function or
segment. Taxes and other items not properly included among program revenues are reported instead as
general revenues. Separate financial statements are provided for governmental funds and proprietary funds.
Major individual funds are reported as separate columns in the fund financial statements.
33
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2017
Note 1—Summary of significant accounting policies (continued)
The government-wide financial statements are presented on an economic resources measurement focus and
the accrual basis of accounting. Accordingly, all of the City’s assets and liabilities, including capital assets, as
well as infrastructure assets and long-term liabilities, are included in the accompanying Statement of Net
Position. The Statement of Activities presents changes in net position. Under the accrual basis of accounting,
revenues are recognized in the period in which they are earned while expenses are recognized in the period in
which the liability is incurred.
Governmental fund financial statements are reported using the current financial resources measurement focus
and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable
and available. Revenues are considered to be available when they are collectible within the current period or
soon enough thereafter to pay liabilities of the current period. For this purpose, the City considers revenues to
be available if they are collected within sixty days of the end of the current fiscal period. Expenditures generally
are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as
well as expenditures related to compensated absences and claims and judgments, are recorded only when
payment is due.
The primary revenue sources, which have been treated as susceptible to accrual by the City, are property tax,
sales tax, intergovernmental revenues and other taxes. Only the portion of special assessments receivable due
within the current fiscal period is considered to be susceptible to accrual as revenue of the current period. All
other revenue items are considered to be measurable and available only when cash is received by the City.
The City reports the following major governmental funds:
General Fund – This is the City’s general operating fund. It accounts for all financial resources, except
those required to be accounted for in another fund.
Sales Tax III Fund – This fund is used to account for the receipt and disbursement of money from the
county-wide capital project sales tax.
Capital Projects Fund – This fund is used to account for the acquisition and construction of major capital
items other than those financed by proprietary funds and trust funds.
North Augusta Public Facilities Fund – This fund represents the activities of the North Augusta Public
Facilities Corporation, a blended component unit, as previously discussed at the beginning of Note 1.
Proprietary funds are accounted for using the economic resources measurement focus and the accrual basis of
accounting. Accordingly, all assets and liabilities (whether current or non-current) are included on the Statement
of Net Position. The Statement of Revenues, Expenses, and Changes in Fund Net Position present increases
(revenues) and decreases (expenses) in total net position. Under the accrual basis of accounting, revenues are
recognized in the period in which they are earned while expenses are recognized in the period in which the
liability is incurred.
Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues
and expenses generally result from providing services and producing and delivering goods in connection with a
proprietary fund’s principal ongoing operations. Operating expenses for the proprietary funds include the cost of
sales and services, administrative expenses and depreciation on capital assets. All revenues and expenses not
meeting this definition are reported as nonoperating revenues and expenses.
34
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2017
Note 1—Summary of significant accounting policies (continued)
For the City’s proprietary funds, the intent of the governing body is that the costs (expenses including
depreciation) of providing goods or services to the general public on a continuing basis be financed or
recovered primarily through user charges. The City reports the following major proprietary funds:
Water and Wastewater Fund – This fund is used to account for waterworks and wastewater system
operations that are financed and operated in a manner similar to private business enterprises.
Sanitation Services Fund – This fund is used to account for sanitation and recycling operations that are
financed and operated in a manner similar to private business enterprises.
The Stormwater Utility Fund – This fund is used to account for improvements to stormwater runoff
infrastructure that are financed and operated in a manner similar to private business enterprises.
Interfund Transactions – Interfund transactions consisting of identified services performed for other funds or
costs billed to other funds are treated as expenditures in the fund receiving the services and as a
reimbursement reducing expenditures in the fund performing the service. Outstanding balances resulting from
transactions between funds are reported as “due to/due from other funds.” Any residual balances between the
governmental and the business-type activities are reported on the government-wide financial statements as
“internal balances.”
Estimates – The preparation of financial statements in conformity with generally accepted accounting principles
requires management to make estimates and assumptions that affect certain reported amounts and disclosures.
D. Budgets and budgetary accounting
The City follows these procedures in establishing the budgetary data reflected in the financial statements.
Prior to October 1, the City Administrator submits to the City Council a proposed operating budget for
the fiscal year commencing the following January 1. The operating budget includes proposed
expenditures and expenses and the means of financing them.
Public hearings are conducted to obtain taxpayer comments.
Prior to January 1, the budget is legally enacted through passage of an ordinance.
Transfer of budgeted amounts between functional areas must be approved by the City Council.
However, the City Administrator can amend the budget at the line item or department level, within a
functional area, not to exceed $5,000. Management can also over-expend appropriations, with the City
Administrator’s approval, at the line item and department level, as long as the total expenditures or
expenses do not exceed appropriations of the functional area.
Formal budgetary integration is employed as a management control device. A budget is legally adopted
annually for the General Fund on a basis consistent with generally accepted accounting principles.
Annual budgets are not adopted for the Special Revenue Funds or the Capital Projects Fund. These
funds budget on a project or activity basis instead of an annual operating cycle basis. Budgets for the
enterprise funds are legally adopted annually on a basis consistent with generally accepted accounting
principles except that depreciation is not a budgeted item.
35
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2017
Note 1—Summary of significant accounting policies (continued)
Budgeted amounts are as originally adopted or as amended by the City Council or the City
Administrator. There were no individual amendments to the original appropriations, which were adopted
and consisted of transferring amounts within departmental accounts. No supplemental appropriations
were necessary during the year.
The City employs the use of encumbrance accounting during the year. All encumbrances lapse at the
end of the year.
Unexpended appropriations lapse at the end of the year except that a whole or part of appropriations
provided in the budget for capital or betterment outlays of any department or activity remaining
unexpended at the close of the fiscal year is held available for the following year.
Excess of Expenditures over Appropriations – For the year ended December 31, 2017, expenditures exceeded
budget in the General Fund for the following functions:
BudgetActual
Over (Under)
Budget
Public safety 7,522,432$ 7,865,896$ 343,464$
Capital lease payments - public safety 475,967 375,652 (100,315)
7,998,399$ 8,241,548$ 243,149$
Public works 1,469,742$ 1,500,871$ 31,129$
Capital lease payments - public works 69,815 65,930 (3,885)
1,539,557$ 1,566,801$ 27,244$
Parks, recreation and tourism 3,975,471$ 4,100,073$ 124,602$
Capital lease payments - parks, recreation, and tourism68,823 66,206 (2,617)
4,044,294$ 4,166,279$ 121,985$
The over-expenditures in the Public Safety and Public Works functions were due to purchases of vehicles and
equipment with capital lease proceeds. The over-expenditures in Parks, Recreation, and Tourism were due to
higher than expected costs for tournaments and festivals; however, these costs were off-set by higher than
expected revenue in the General Fund. Parks, Recreation, and Tourism also was awarded a non-budgeted
state grant for mosquito control which is offset by grant revenue in the General Fund.
36
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2017
Note 1—Summary of significant accounting policies (continued)
E. Assets, liabilities, deferred outflow/inflows of resources, and net position and fund balance
Cash/Cash Equivalents and Investments – For purposes of the Statement of Cash Flows, the enterprise funds
consider all highly-liquid investments (including restricted assets) with a maturity of three months or less when
purchased, to be cash equivalents.
Investments are stated at fair value. A detailed description of investments is included in Note 2.
Receivables – Receivables are shown net of allowances for uncollectible amounts. Uncollectible amounts are
estimated based upon past collection experience.
Inventory – Inventory in the Water and Wastewater System Fund is valued at the lower of cost (first-in, first-out)
or market and consists of supplies used in repairing and maintaining the water and wastewater systems.
Restricted Assets – Certain resources set aside for the City’s debt repayment (revenue bonds) are classified as
restricted assets on the Statement of Net Position because their use is limited by debt agreements.
Capital Assets – All purchased capital assets are valued at cost where historical records are available and at an
estimated historical cost where no historical records exist. Donated capital assets are valued at their estimated
acquisition value on the date received. General infrastructure assets consisting of roadways, storm drainage,
sidewalks, etc., constructed, or acquired prior to January 1, 2003 are reported at estimated historical cost using
deflated replacement cost. General infrastructure assets constructed or acquired after January 1, 2003 are
reported at cost. The City’s policy is to capitalize purchases over $5,000.
The costs of normal maintenance and repairs that do not add to the value of assets or materially extend asset
lives are not capitalized. Improvements are capitalized and depreciated over the remaining useful lives of the
related capital assets, as applicable.
Interest incurred during the construction phase of capital assets of enterprise funds is included as part of the
capitalized value of the assets constructed. The amount of interest capitalized depends on the specific
circumstances. During the year ended December 31, 2017, revenue bonds in the enterprise funds were used to
finance specific water plant improvements. Accordingly, interest expense in the amount of $417,900 was
capitalized during 2017 and is included in construction in progress.
Land and construction in progress are not depreciated. Depreciable assets are depreciated using the straight-
line method over the following estimated useful lives:
Buildings 10 - 40 years
Water and wastewater system, structures, and facilities 20 - 75 years
Machinery and equipment 3 - 12 years
Furniture and fixtures 5 - 12 years
Vehicles 5 - 10 years
Other assets 20 years
PSA capital share - Aiken 40 years
Roadways 25 years
37
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2017
Note 1—Summary of significant accounting policies (continued)
Compensated Absences – It is the City’s policy to permit employees to accumulate earned but unused vacation
and sick pay benefits. There is no liability for unpaid accumulated sick leave since the City does not have a
policy to pay any amounts when employees separate from service with the City. All vacation pay is attributable
to past service and the employees will be compensated; therefore the vacation pay is accrued in the
government-wide and proprietary fund financial statements. For governmental activities, compensated
absences are generally liquidated by the General Fund and are only reported when they are payable to the
employee upon resignation or retirement.
Long-Term Obligations – In the government-wide and proprietary funds' financial statements, long-term debt,
and other long-term obligations are reported as liabilities. Bond premiums and discounts are deferred and
amortized over the life of the bonds using the effective interest method. Bonds payable are reported net of the
applicable premium or discount. Bond issuance costs are expensed as they are incurred.
In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as
bond issuance costs, during the current period. The face amount of debt issued is reported as another financing
source. Premiums received are reported as other financing sources, while discounts are reported as other
financing uses. Issuance costs, whether or not withheld from debt proceeds received, are reported as debt
service expenditures.
Deferred Outflows/Inflows of Resources – In addition to assets, the statement of financial position will
sometimes report a separate section for deferred outflows of resources. This separate financial statement
element, deferred outflows of resources, represents a consumption of net position that applies to a future
period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The City’s
deferred outflows consist of pension related items, as further discussed in Note 8.
In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred
inflows of resources. This separate financial statement element, deferred inflows of resources, represents an
acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of
resources (revenue) until that time.
Deferred inflows of resources consist of unavailable revenue and pension related items. Unavailable revenue,
under the modified accrual basis of accounting, is reported in the governmental funds balance sheet as a
deferred inflow. These amounts are deferred and recognized as an inflow of resources in the period that the
amounts become available. Certain pension related items, as further discussed in Note 8, are also classified as
deferred inflows.
Fund Balance/Net Position – Fund equity in government-wide and proprietary fund financials is classified as net
position. Net position is classified as follows:
Net Investment in Capital Assets – This classification represents capital assets, net of accumulated
depreciation, decreased by the remaining balances of any bonds, notes or other borrowings that are
attributable to the acquisition, construction, or improvement of those assets.
Restricted – Restricted net assets represent constraints on resources that are either externally imposed by
creditors, grantors, contributors, or laws or regulations of other governments or imposed by law through
state statute.
Unrestricted – Unrestricted net assets represent net assets that do not meet the definitions of the other
classifications.
38
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2017
Note 1—Summary of significant accounting policies (continued)
Fund balance is divided into five classifications based primarily on the extent to which the City is bound to
observe constraints imposed upon the use of the resources in the governmental funds. The classifications are
as follows:
Nonspendable – Fund balances are reported as nonspendable when amounts cannot be expended
because they are either (1) not in spendable form or (2) legally or contractually required to be maintained
intact.
Restricted – Fund balances are reported as restricted when there are restrictions imposed on their use
either through enabling legislation adopted by the City or through external restrictions imposed by creditors,
grantors, contributors, or laws or regulations of other governments or imposed by law through state statute.
Committed – Fund balances are reported as committed when they can be used only for a specific purpose
pursuant to constraints imposed at the highest level of decision-making authority. The City Council is the
highest level of decision-making authority. The City Council can establish, modify, or rescind a fund
balance commitment through adoption of a resolution.
Assigned – Fund balances are reported as assigned when amounts are constrained by the City Council’s
intent to be used for specific purposes but are neither restricted nor committed. The City Administrator, who
is appointed by and serves at the pleasure of the City Council, has the authority to assign fund balance
amounts and does not require formal action to impose, modify, or remove any fund balance assignment.
Unassigned –- Fund balances are reported as unassigned as the remaining amount when the balances do
not meet any of the other classifications. The City reports positive fund balance in the general fund only, if
applicable. Negative unassigned balances may be reported in all governmental funds.
Flow Assumptions – When both restricted and unrestricted amounts of fund balances are available for use for
expenditures incurred, the City’s policy is to use restricted amounts first and then unrestricted amounts as they
are needed. For unrestricted amounts of fund balance, the City’s policy is to use fund balances in the following
order; committed, assigned, unassigned.
Minimum Fund Balance – City Council has adopted an ordinance under which a minimum unassigned fund
balance policy has been established at each fiscal year-end for certain funds, as follows:
General Fund: 15 percent of the then current general fund budget to the nearest twenty-five thousand
dollars.
Stormwater Utility Fund: 20 percent of the then current stormwater utility fund budget to the nearest
twenty-five thousand dollars.
Sanitation Services Fund: 20 percent of the then current sanitation services fund budget to the nearest
twenty-five thousand dollars.
Street Improvements Fund: $100,000.
Water and Sewer Fund: 20 percent of the then current water and sewer fund budget to the nearest
twenty-five thousand dollars.
39
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2017
Note 2—Equity in pooled cash and investments, deposits, and investments
As of December 31, 2017, the City’s cash and investments consisted of the following:
MaturitiesFair Value
State Treasurer's Investment Pool Daily 40,262,328$
Demand deposit accounts Daily 12,584,481
Treasury reserves 2,022,439
Total cash and investments 54,869,248$
Credit Risk – The City has an investment policy that all investments made by the City will be selected and
properly secured in accordance with State law. Section 6-5-10 of the State of South Carolina Code of Laws
authorizes local governments to make the following types of investments:
Obligations of the United States and agencies thereof;
General obligations of the State of South Carolina or any of its political units;
Savings and Loan Associations to the extent that the same are insured by an agency of the federal
government;
Repurchase agreements when collateralized by securities as set forth in this section;
Certificates of deposit where the certificates are collaterally secured by securities of the type described
in 1 and 2 above held by a third party as escrow agent or custodian, of a market value not less than the
amount of the certificates of deposit so secured, including interest; provided; however, such collateral
shall not be required to the extent the same are insured by an agency of the federal government; and,
No load open-end or closed-end management-type investment companies or investment trusts
registered under the Investment Company Act of 1940, as amended, where the investment is made by
a bank or trust company or savings and loan association or other financial institution when acting as
trustee or agent for a bond or other debt issue of that local government unit, political subdivision, or City
treasurer if the particular portfolio of the investment company or investment trust in which the
investment made is (i) limited to obligations described in items 1, 2, and 5 of this subsection, and (ii) has
among its objectives the attempt to maintain a constant net asset value of one dollar a share and to that
end, value its assets by the amortized cost method.
Section 6-6-20 of the State of South Carolina Code of Laws authorizes the State Treasurer’s Office to invest
and reinvest the monies of the State Treasurer’s Investment Pool in the investments identified in Section 6-5-10
shown above and identified in Section 11-9-660 as follows:
Obligations of the United States, its agencies and instrumentalities;
Obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and
Development, the African Development Bank, and the Asian Development Bank;
Obligations of a corporation, state, or political subdivision denominated in United States dollars, if the
obligations bear an investment-grade rating of at least two nationally-recognized rating services;
40
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2017
Note 2—Equity in pooled cash and investments, deposits, and investments (continued)
Certificates of deposit, if the certificates are secured collaterally by securities of the types described in
items 1 and 3 of this section and held by a third party as escrow agent or custodian and are of a market
value not less than the amount of the certificates of deposit so secured, including interest; except that
this collateral is not required to the extent the certificates of deposit are insured by an agency of the
federal government;
Repurchase agreements, if collateralized by securities of the types described in items 1 and 3 of this
section and held by a third party as escrow agent or custodian and of a market value not less than the
amount of the repurchase agreement so collateralized, including interest; and
Guaranteed investment contracts issued by a domestic or foreign insurance company or other financial
institution, whose long-term unsecured debt rating bears the two highest ratings of at least two
nationally-recognized rating services.
The State Treasurer’s Local Government Investment Pool (“LGIP”) is an external investment pool that is not
registered as an investment company with the Securities and Exchange Commission. However, the pool has a
policy established to operate the pool consistent with the Securities and Exchange Commission Rule 2a-7 of the
Investment Company Act of 1940. The LGIP is an investment trust fund, in which public monies in excess of
current needs, which are under the custody of any county treasurer or any governing body of a political
subdivision of the State, may be deposited. Funds may be deposited by LGIP participants at any time and may
be withdrawn upon 24 hours’ notice. Financial statements for the LGIP may be obtained by writing the Office of
State Treasurer, Local Government Investment Pool, Post Office Box 11778, Columbia, South Carolina 29211-
1950.
At December 31, 2017, the underlying security ratings of the City’s investment in the Local Government
Investment Pool are not separately rated, however, additional information related to these deposits may be
obtained from the Local Government Investment Pool’s complete financial statements. These financial
statements may be obtained by writing to the following address:
Office of the State Treasurer
Local Government Investment Pool
Post Office Box 11778
Columbia, South Carolina 29211
Interest Rate Risk – The City’s formal investment policy does not limit investment maturities as a means of
managing its exposure to fair value losses arising from increasing interest rates. The City does not consider
itself to be at risk due to interest rates as all investments currently mature daily.
Concentration Credit Risk – The City’s formal investment policy does not place a limit on the amount the City
may invest in any one issuer. The City’s investments held in the State Treasurer’s Investment Pool comprise 73
percent of total deposits and investments. The additional concentration is not viewed to be an additional risk by
the City as these accounts are fully collateralized.
Custodial Credit Risk – Deposits – Custodial credit risk for deposits is the risk that, in the event of a bank failure,
the City’s deposits may not be returned to it. The City does not have a deposit policy for custodial credit risk. At
December 31, 2017, the carrying amount of the City’s deposits was $12,580,381 and the bank balance was
$13,172,443. The entire bank balance was covered by federal depository insurance or by collateral held by the
City’s agent in the City’s name.
41
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2017
Note 2—Equity in pooled cash and investments, deposits, and investments (continued)
Custodial Credit Risk – Investments – Custodial credit risk for investments is the risk that, in the event of the
failure of the counterparty, the government will not be able to recover the value of its investments or collateral
securities that are in the possession of an outside party. At December 31, 2017, all of the City’s investments
held by the State Treasurer’s Office, except those in securities lending transactions, are fully insured or
collateralized; the investments held in Money Market Accounts are fully insured or collateralized. Fixed income
mutual funds held by the City are rate AAAm by S&P and invest at least 99.5 percent of total assets in cash,
U.S. Treasury bills, note and other obligations issued or guaranteed as to principal and interest by the U.S
Treasury, and repurchase agreements secured by such obligation or cash.
Note 3—Fair value measurements
During the year ended December 31, 2016, the City adopted SGAS No. 72, Fair Value Measurement and
Application, which requires fair value measurement be classified and disclosed in one of the following three Fair
Value Hierarchy categories:
Level 1
Quoted prices are available in active markets for identical investments as of the reporting date. The types of
investments which would generally be included in Level 1 include listed equity securities, mutual funds, and
money market funds.
Level 2
Pricing inputs are observable for the investments, either directly or indirectly, as of the reporting date, but are
not the same as those used in Level 1; inputs include comparable market transactions, pricing of similar
instruments, values reported by the administrator, and pricing expectations based on internal modeling. Fair
value is determined through the use of models or other valuation methodologies. The types of investments
which would generally be included in this category include publicly traded securities with restrictions on
disposition, corporate obligations, and U.S. Government and Agency Treasury Inflation Indices.
Level 3
Pricing inputs are unobservable for the investment and include situations where there is little, if any, market
activity for the investments. The types of investments which would generally be included in this category include
debt and equity securities issued by private entities and partnerships. The inputs into the determination of fair
value require significant judgment or estimation. Inputs include recent transactions, earnings forecasts, market
multiples, and future cash flows.
The City’s recurring fair value measurements as of December 31, 2017 for its $40,262,328 investment in the
Local Government Investment Pool are valued at the net asset value (“NAV”). Fair value of the LGIP’s
investments is determined on a recurring basis based upon quoted market prices. The fair value of the pool is
allocated to its local governments with invested funds on an equal basis for each share owned, which are
purchased at a cost of $1.00.
42
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2017
Note 4—Capital assets
Capital asset activity for the year ended December 31, 2017 was as follows:
Governmental Activities
Balance Balance
1/1/2017AdditionsDisposals12/31/2017
Capital assets, not being
depreciated:
Land9,154,817$ 896,669$ -$ 10,051,486$
Construction in progress3,124,710 42,832,028 (257,929) 45,698,809
Right-of-away3,226,901 - - 3,226,901
Total capital assets, not
being depreciated15,506,428 43,728,697 (257,929) 58,977,196
Capital assets, being
depreciated:
Land improvements14,867,669 637,495 - 15,505,164
Buildings46,230,250 313,086 - 46,543,336
Machinery and equipment2,082,674 85,872 (78,074) 2,090,472
Furniture and fixtures1,547,977 20,280 (13,718) 1,554,539
Vehicles7,174,821 473,982 (180,879) 7,467,924
Infrastructure23,903,815 - - 23,903,815
Total capital assets,
being depreciated95,807,206 1,530,715 (272,671) 97,065,250
Less accumulated
depreciation for:
Land improvements(8,213,349) (603,097) - (8,816,446)
Buildings(9,868,971) (1,060,048) - (10,929,019)
Machinery and equipment(1,570,198) (240,952) 71,996 (1,739,154)
Furniture and fixtures(1,092,559) (108,399) 18,847 (1,182,111)
Vehicles(3,595,264) (639,983) 171,281 (4,063,966)
Infrastructure(11,647,039) (767,570) - (12,414,609)
Total accumulated
depreciation(35,987,380) (3,420,049) 262,124 (39,145,305)
Total capital assets
being depreciated, net59,819,826 (1,889,334) (10,547) 57,919,945
Governmental activities
capital assets, net 75,326,254$ 41,839,363$ (268,476)$ 116,897,141$
43
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2017
Note 4—Capital assets (continued)
Governmental activity depreciation expense was charged to functions as follows:
General government:745,671$
Public safety 778,640
Public works:1,150,838
Recreation and parks:744,900
3,420,049$
Business-Type Activities
Balance Balance
1/1/2017AdditionsDisposals12/31/2017
Capital assets, not being
depreciated:
Land824,058$ -$ -$ 824,058$
Construction in progress25,774,095 4,581,946 (12,965,403) 17,390,638
Easements62,760 - - 62,760
Total capital assets, not
being depreciated26,660,913 4,581,946 (12,965,403) 18,277,456
Capital assets, being
depreciated:
Buildings6,193,949 - - 6,193,949
Machinery and equipment2,807,171 33,361 (156,857) 2,683,675
Vehicles4,388,004 324,171 (260,900) 4,451,275
System improvements56,178,225 13,240,175 - 69,418,400
PSA capital4,667,405 - - 4,667,405
Total capital assets,
being depreciated74,234,754 13,597,707 (417,757) 87,414,704
Less accumulated
depreciation for:
Buildings(2,844,818) (235,633) - (3,080,451)
Machinery and equipment(2,125,308) (172,410) 156,088 (2,141,630)
Vehicles(3,123,763) (480,458) 260,900 (3,343,321)
System improvements(15,927,344) (809,249) - (16,736,593)
PSA capital(2,585,658) (116,685) - (2,702,343)
Total accumulated
depreciation (26,606,891) (1,814,435) 416,988 (28,004,338)
Total capital assets
being depreciated, net47,627,863 11,783,272 (769) 59,410,366
Business-type activities
capital assets, net 74,288,776$ 16,365,218$ (12,966,172)$ 77,687,822$
44
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2017
Note 5—Capital lease obligations
The City has entered into several long-term lease agreements for machinery and equipment, furniture and
fixtures, and vehicles. Although the leases contain clauses which provide that the leases are cancelable if
funds are not appropriated for the periodic payments for any future fiscal periods, the leases meet the criteria of
a capital lease as defined by the National Council on Governmental Accounting Statement No. 5, Accounting
and Financial Reporting Principles for Lease Agreements of State and Local Governments. The following is an
analysis of the capital assets leased under capital leases as of December 31, 2017:
GovernmentalWater and
FundsWastewaterSanitationTotal
Machinery and equipment 388,528$ 193,584$ 349,923$ 932,035$
Vehicles 2,475,446 362,930 1,064,418 3,902,794
Buildings 6,350,000 - - 6,350,000
9,213,974 556,514 1,414,341 11,184,829
Accumulated depreciation (2,136,898) (261,438) (628,454) (3,026,790)
Carry value 7,077,076$ 295,076$ 785,887$ 8,158,039$
The following is a schedule of the future minimum lease payments under capital leases and the present value of
the net minimum lease payments as of December 31, 2017:
GovernmentalWater and
Year Ending December 31,FundsWastewaterSanitationTotal
560,332$ 94,997$ 238,087$ 893,416$
451,377 76,525 191,792 719,694
226,510 38,402 96,245 361,157
110,642 18,758 47,012 176,412
Total minimum lease payments1,348,861 228,682 573,136 2,150,679
Amount representing interest(42,467) (5,963) (18,075) (66,505)
Present value of minimum
lease payments1,306,394$ 222,719$ 555,061$ 2,084,174$
Business‐Type Funds
2018
2019
2020
2021
45
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2017
Note 6—Long‐term debt
Changes in Long-Term Debt
Long-term liability activity for the year ended December 31, 2017 was as follows:
Balance BalanceDue Within
1/1/2017AdditionsReductions12/31/2017One Year
Governmental Activities:
Revenue bonds:
North Augusta Public Facility
Corporation revenue bond10,141,337$ 71,882,320$ (12,573,657)$ 69,450,000$ -$
Tax increment revenue bond25,000 - - 25,000 -
Total revenue bonds10,166,337 71,882,320 (12,573,657) 69,475,000 -
Capital leases:
Municipal Center lease3,466,970 - (3,466,970) - -
Capitalized leases1,431,394 473,983 (598,983) 1,306,394 499,906
Total capital leases4,898,364 473,983 (4,065,953) 1,306,394 499,906
Other liabilities:
Compensated absences656,182 481,749 (441,734) 696,197 512,195
Total15,720,883$ 72,838,052$ (17,081,344)$ 71,477,591$ 1,012,101$
Revenue Bond Payable – Revenue bond payable (recorded as a liability for governmental activities) at
December 31, 2017 is comprised of the following:
In January 2015, the North Augusta Public Facilities Corporation entered into an installment purchase
transaction in the principal amount of not exceeding ten million dollars to construct and equip a parking garage.
In January of 2016, this agreement was amended and restated as an installment purchase transaction in the
principal amount, not exceeding thirteen million dollars, to refinance the costs relating to the construction and
equipping of a parking garage and finance the costs relating to the construction and equipping of certain roads,
water, sewer and related infrastructure. In January 2017, this agreement was amended and restated again in
the principal amount not exceeding sixteen million dollars (“Series 2017A”). In January 2017, the City also
entered into an amended and restated agreement to lease the parking deck from the Corporation. In May 2017,
the North Augusta Public Facilities Corporation entered into an installment purchase transaction in the principal
amount of not exceeding $69,450,000 to construct and equip two parking decks, a stadium, conference
facilities, a riverfront park, and certain roads, water, sewer and related infrastructure (“Series 2017B”). Proceeds
from this transaction were also used to refinance the municipal center capital lease and the Series 2017A
revenue bond discussed above.
Total draws for the Series 2017B revenue bond as of December 31, 2017 are $35,739,216. The bond matures
in November 2048. Principal payments are due annually in November beginning in 2020. Interest payments are
made bi-annually based on the all-in true interest cost of the revenue bond transaction.
46
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2017
Note 6—Long‐term debt (continued)
2017B Revenue Bond Issue
PrincipalInterestTotal
-$ 3,217,755$ 3,217,755$
- 3,217,755 3,217,755
650,000 3,217,755 3,867,755
715,000 3,202,506 3,917,506
710,000 3,182,407 3,892,407
2023-204867,375,000 57,650,595 125,025,595
69,450,000$ 73,688,773$ 143,138,773$
2022
2018
2019
2020
2021
Long-term liability activity for the year ended December 31, 2017 was as follows:
Balance BalanceDue Within
1/1/2017AdditionsReductions12/31/2017One Year
Business-type Activities:
Revenue bonds payable:
Revenue bonds 20,299,376$ 2,059,767$ (1,376,281)$ 20,982,862$ 1,105,323$
Capital leases:
Capitalized leases 785,635 324,171 (332,025) 777,781 360,964
Other liabilities:
Compensated absences 281,734 236,985 (195,454) 323,265 323,265
Total 21,366,745$ 2,620,923$ (1,903,760)$ 22,083,908$ 1,789,552$
Revenue Bonds Payable – Revenue bonds payable (recorded as a liability in the Water and Wastewater
System Fund) at December 31, 2017 are comprised of the following individual issues:
11,422,409$
9,560,453
20,982,862$
$13,000,000WaterandWastewater(Series2015A)serialbonds,originally
datedFebruary17,2015(SCDrinkingWaterRevolvingLoanFundNumberX3-
065-14-0210003-02)duein80quarterlyinstallmentsof$197,561beginning
March1,2017;interestat2.0%.TotaldrawsasofDecember31,2017are
$10,094,688. Total draws remaining are $2,905,312.
$13,000,000WaterandWastewater(Series2014A)serialbonds,originally
datedMarch20,2014(SCDrinkingWaterRevolvingLoanFundNumber3-060-
14-0210003-01)duein80quarterlyinstallmentsof$196,146beginningMay1,
2015throughFebruary1,2035;interestat2.0%.Totaldrawsasof
December31,2017are$12,906,882.Therearenoremainingdraws.The
project budget was amended on April 6, 2017 to $12,906,882.
47
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2017
Note 6—Long‐term debt (continued)
2014A Revenue Bond Issue
PrincipalInterestTotal
560,322$ 224,263$ 784,585$
571,613 212,972 784,585
583,131 201,454 784,585
594,881 189,704 784,585
606,868 177,717 784,585
2023-20358,505,594 1,105,579 9,611,173
11,422,409$ 2,111,689$ 13,534,098$
2015A Revenue Bond Issue
PrincipalInterestTotal
545,001$ 245,245$ 790,246$
555,983 234,263 790,246
567,186 223,060 790,246
578,616 211,630 790,246
590,275 199,971 790,246
6,723,392 1,201,572 7,924,964
9,560,453$ 2,315,741$ 11,876,194$
2022
2018
2022
2023-2036
2019
2020
2021
2019
2020
2021
2018
The revenue bond ordinances require, among other things, that certain funds be maintained as follows:
Funds
Purposes
Gross Revenue Fund To receive all receipts, income, and revenues that the City
shall derive directly or indirectly from the operation of the
system and to disburse them to the following funds.
Operation and Maintenance Fund To provide for the payment of all fund expenses incurred in
connection with the administration and operation of the
system.
Bond and Interest Redemption Fund To provide for the payment of the principal and interest on
the bonds.
Debt Service Reserve Fund To insure the timely payment of the principal and interest on
the bonds, and to provide for the redemption of bonds prior
to their stated maturity.
48
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2017
Note 6—Long‐term debt (continued)
Depreciation or Replacement Fund
Intended to build up a reasonable reserve for depreciation of
the system for the purpose of restoring depreciated or
obsolete items of the system.
Contingent Fund Intended to build up a reasonable reserve for improvements,
betterments and extensions to the system.
Construction Fund Intended to provide for the payment of temporary loans
made in anticipation of the issuance of bonds and the cost
of the construction of the improvements.
Monies shall be transferred to all the funds from the Gross Revenue Fund monthly as required to meet the
stated purpose of the individual funds. The system is specifically required to deposit one-sixth of the aggregate
amount of interest to become due on the next semiannual interest payment date and one-twelfth of the
aggregate annual amount of principal to become due in the Bond and Interest Redemption Fund monthly.
The revenue bonds are collateralized by a pledge of revenues derived from the system for so long a time as any
sum remains due and payable by way of principal or interest on the bonds. Annual principal and interest
payments on the revenue bonds are expected to be less than 25 percent of annual net system charges for
services. Principal and interest paid in 2017 totaled $1,869,321. Total net charges for services for the year were
$9,459,054.
Note 7—Property taxes
Taxes on real property and merchants’ inventory are levied on January 1 of each year and are based on
ownership of such property and inventory as of January 1 of the preceding year. These taxes are billed and
payable between January 1 and May 1 of the year in which they are levied. As of May 1, property taxes attach
as an enforceable lien on property. The City bills and collects its own real and merchants’ ad valorem taxes.
Taxes on personal property are levied and billed in the month prior to the renewal of the annual vehicle
registration through the State Highway Department and are payable prior to the registration and tag purchase.
Ad valorem taxes on personal property (vehicles) are billed and collected by the County Treasurer and remitted
to the City on a monthly basis. City property tax revenues are recognized in the year for which taxes have been
levied and are collectible either during that year or within 60 days following year-end.
Note 8—Pension plans
The South Carolina Public Employee Benefit Authority (“PEBA””), which was created July 1, 2012, administers
the various retirement systems and retirement programs managed by its Retirement Division. PEBA has an 11-
member Board of Directors, appointed by the Governor and General Assembly leadership, which serves as co-
trustee and co-fiduciary of the systems and the trust funds. By law, the State Fiscal Accountability Authority
(SFAA), which consists of five elected officials, also reviews certain PEBA Board decisions regarding the
funding of the South Carolina Retirement Systems (“Systems”) and serves as a co-trustee of the Systems in
conducting that review. Effective July 1, 2017 the Retirement Systems Funding and Administration Act of 2017
assigned the PEBA Board of Directors as the Custodian of the Retirement Trust Funds and assigned PEBA and
the Retirement Systems Investment Commission (RSIC) as co-trustees of the Retirement Trust Funds.
49
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2017
Note 8—Pension plans (continued)
For purposes of measuring the net pension liability, deferred outflows and inflows of resources related to
pensions, and pension expense, information about the fiduciary net positions of the Systems and additions
to/deductions from the Systems fiduciary net position have been determined on the accrual basis of accounting
as they are reported by the Systems in accordance with generally accepted accounting principles (GAAP). For
this purpose, revenues are recognized when earned and expenses are recognized when incurred. Benefit and
refund expenses are recognized when due and payable in accordance with the terms of the plan. Investments
are reported at fair value.
PEBA issues a Comprehensive Annual Financial Report (“CAFR”) containing financial statements and required
supplementary information for the Systems’ Pension Trust Funds. The CAFR is publicly available on the
Retirement Benefits’ link on PEBA’s website at www.peba.sc.gov, or a copy may be obtained by submitting a
request to PEBA, 202 Arbor Lake Drive, Columbia SC 29223. PEBA is considered a division of the primary
government of the state of South Carolina and therefore, retirement trust fund financial information is also
included in the CAFR of the state. City of North Augusta is a member of the South Carolina Retirement System
(“SCRS”) and the South Carolina Police Officers Retirement System (“PORS”).
Plan Description – The South Carolina Retirement System (“SCRS”), a cost-sharing multiple-employer defined
benefit pension plan, was established effective July 1, 1945, pursuant to the provisions of Section 9-1-20 of the
South Carolina Code of Laws for the purpose of providing retirement allowances and other benefits for
employees of the state, its public school districts, and political subdivisions.
The South Carolina Police Officers Retirement System (“PORS”), a cost-sharing multiple-employer defined
benefit pension plan, was established effective July 1, 1962, pursuant to the provisions of Section 9-11-20 of the
South Carolina Code of Laws for the purpose of providing retirement allowances and other benefits for police
officers and firemen of the state and its political subdivisions.
Membership – Membership requirements are prescribed in Title 9 of the South Carolina Code of Laws. A brief
summary of the requirements under each system is presented below.
SCRS – Generally, all employees of covered employers are required to participate in and contribute to the
system as a condition of employment. This plan covers general employees and teachers and individuals newly
elected to the South Carolina General Assembly beginning with the November 2012 general election. An
employee member of the system with an effective date of membership prior to July 1, 2012, is a Class Two
member. An employee member of the system with an effective date of membership on or after July 1, 2012, is a
Class Three member.
PORS – To be eligible for PORS membership, an employee must be required by the terms of his employment,
by election or appointment, to preserve public order, protect life and property, and detect crimes in the state; to
prevent and control property destruction by fire; or to serve as a peace officer employed by the Department of
Corrections, the Department of Juvenile Justice, or the Department of Mental Health. Probate judges and
coroners may elect membership in PORS. Magistrates are required to participate in PORS for service as a
magistrate. PORS members, other than magistrates and probate judges, must also earn at least $2,000 per
year and devote at least 1,600 hours per year to this work, unless exempted by statute. An employee member
of the system with an effective date of membership prior to July 1, 2012, is a Class Two member. An employee
member of the system with an effective date of membership on or after July 1, 2012, is a Class Three member.
50
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2017
Note 8—Pension plans (continued)
Benefits - Benefit terms are prescribed in Title 9 of the South Carolina Code of Laws. PEBA does not have the
authority to establish or amend benefit terms without a legislative change in the code of laws. Key elements of
the benefit calculation include the benefit multiplier, years of service, and average final compensation. A brief
summary of benefit terms for each system is presented below.
SCRS – A Class Two member who has separated from service with at least five or more years of earned
service is eligible for a monthly pension at age 65 or with 28 years credited service regardless of age. A
member may elect early retirement with reduced pension benefits payable at age 55 with 25 years of service
credit. A Class Three member who has separated from service with at least eight or more years of earned
service is eligible for a monthly pension upon satisfying the Rule of 90 requirement that the total of the
member’s age and the member’s creditable service equals at least 90 years. Both Class Two and Class Three
members are eligible to receive a reduced deferred annuity at age 60 if they satisfy the five- or eight-year
earned service requirement, respectively. An incidental death benefit is also available to beneficiaries of active
and retired members of employers who participate in the death benefit program.
The annual retirement allowance of eligible retirees or their surviving annuitants is increased by the lesser of
one percent or five hundred dollars every July 1. Only those annuitants in receipt of a benefit on July 1 of the
preceding year are eligible to receive the increase. Members who retire under the early retirement provisions at
age 55 with 25 years of service are not eligible for the benefit adjustment until the second July 1 after reaching
age 60 or the second July 1 after the date they would have had 28 years of service credit had they not retired.
PORS – A Class Two member who has separated from service with at least five or more years of earned
service is eligible for a monthly pension at age 55 or with 25 years of service regardless of age. A Class Three
member who has separated from service with at least eight or more years of earned service is eligible for a
monthly pension at age 55 or with 27 years of service regardless of age. Both Class Two and Class Three
members are eligible to receive a deferred annuity at age 55 with five or eight years of earned service,
respectively. An incidental death benefit is also available to beneficiaries of active and retired members of
employers who participate in the death benefit program. Accidental death benefits are also provided upon the
death of an active member working for a covered employer whose death was a natural and proximate result of
an injury incurred while in the performance of duty.
The retirement allowance of eligible retirees or their surviving annuitants is increased by the lesser of one
percent or five hundred dollars every July 1. Only those annuitants in receipt of a benefit on July 1 of the
preceding year are eligible to receive the increase.
Contributions - Contributions are prescribed in Title 9 of the South Carolina Code of Laws. The PEBA Board
may increase the SCRS and PORS employer and employee contribution rates on the basis of the actuarial
valuations, but any such increase may not result in a differential between the employee and employer
contribution rate that exceeds 2.9 percent of earnable compensation for SCRS and 5 percent for PORS. An
increase in the contribution rates adopted by the board may not provide for an increase of more than one-half of
one percent in any one year. If the scheduled employee and employer contributions provided in statute or the
rates last adopted by the board are insufficient to maintain a thirty year amortization schedule of the unfunded
liabilities of the plans, the board shall increase the contribution rates in equal percentage amounts for the
employer and employee as necessary to maintain the 30-year amortization period; and, this increase is not
limited to one-half of one percent per year.
51
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2017
Note 8—Pension plans (continued)
If the most recent annual actuarial valuation of the Systems for funding purposes shows a ratio of the actuarial
value of system assets to the actuarial accrued liability of the system (the funded ratio) that is equal to or greater
than ninety percent, then the board, effective of the following July first, may decrease the then current
contribution rates upon making a finding that the decrease will not result in a funded ratio of less than 90
percent. Any decrease in contribution rates must maintain the 2.9 and 5 percent differentials between the
SCRS and PORS employer and employee contribution rates respectively. If contribution rates are decreased
pursuant to this provision, and the most recent annual actuarial valuation of the system shows a funded ratio of
less than 90 percent, then effective on the following July first, and annually thereafter as necessary, the board
shall increase the then current contribution rates until a subsequent annual actuarial valuation of the system
shows a funded ratio that is equal to or greater than 90 percent.
The Retirement System Funding and Administration Act increases employer contribution rates to 13.56 percent
for SCRS and 16.24 percent for PORS, effective July 1, 2017. It also removes the 2.9 percent and 5 percent
differential and increases and establishes a ceiling on employee contribution rates at 9 percent and 9.75
percent for SCRS and PORS respectively. The employer contribution rates will continue to increase annually by
1 percent through July 1, 2022. The legislations’ ultimate scheduled employer rate is 18.56 percent for SCRS
and 21.24 percent for PORS. The amortization period is scheduled to be reduced one year for each of the next
10 years to a 20-year amortization schedule. The recent pension reform legislation also changes the long-term
funded ratio requirement from 90 to 85.
SCRS –The City’s contributions to SCRS for the fiscal year ending December 31, 2017 were approximately
$964,000, equal to the required contributions for each year.
PORS –The City’s contributions to PORS for the fiscal year ending December 31, 2017 were approximately
$560,000, equal to the required contributions for each year.
Net Pension Liability - The most recent annual actuarial valuation reports adopted by the PEBA Board and
Budget and Control Board are as of July 1, 2016. The net pension liability of each defined benefit pension plan
was therefore determined based on the July 1, 2016 actuarial valuations, using membership data as of July 1,
2016, projected forward to the end of the fiscal year, and financial information of the pension trust funds as of
June 30, 2017, using generally accepted actuarial procedures. Information included in the following schedules is
based on the certification provided by the consulting actuary, Gabriel, Roeder, Smith and Company.
At December 31, 2017, the City reported $17,231,285 and $7,696,742 for its proportionate share of the
collective net pension liability (NPL) for SCRS and PORS, respectively. The City’s proportionate share of the
SCRS and PORS net pension liability was calculated on the basis of historical employer contributions to the
plan. At December 31, 2017, the City’s proportionate share was 0.076544 percent for SCRS and 0.280950
percent for PORS.
52
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2017
Note 8—Pension plans (continued)
Deferred Outflows/(Inflows) of Resources – For the year ended December 31, 2017, the City recognized
pension expense of $1,820,792 and $1,005,683 for SCRS and PORS, respectively. At December 31, 2017, the
City reported deferred outflows and deferred inflows of resources for each of the respective plans:
Deferred Deferred Deferred Deferred
Outflows of Inflows of Outflows of Inflows of
ResourcesResourcesResourcesResources
Netdifferencebetweenprojectedand
actualearningsonpensionplan
investments481,016$ -$ 274,276$ -$
Netdifferencebetweenexpectedand
actual pension plan experience76,817 9,550 68,632 -
Changesinproportionanddifferences
betweenEmployercontributionsand
proportionate share of contributions218,716 20,360 144,884 -
Assumption changes1,008,706 - 730,497 -
Employer contributions subsequent to
the measurement date542,121 - 313,168 -
Total2,327,376$ 29,910$ 1,531,457$ -$
SCRS PORS
The deferred outflows of resources of $542,121 and $313,168 for SCRS and PORS, related to pensions
resulting from the City’s contributions subsequent to the measurement date, will be recognized as a reduction of
the net pension liability in the year ended December 31, 2017. The following schedule reflects the amortization
of the net balance of remaining deferred outflows/(inflows) of resources at December 31, 2017. Average
remaining service lives of all employees provided with pensions through the pension plans for the June 30,
2017 measurement period was 4.073 years for SCRS and 4.553 years for PORS.
Measurement period ending June 30, 2017
SCRSPORS
2018 545,465$ 370,315$
2019 786,087 489,229
2020 552,291 328,249
2021 (128,498) 30,496
Net balance deferred outflows/(inflow) of resources 1,755,345$ 1,218,289$
Amortization of remaining deferred outflows/(inflows)
53
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2017
Note 8—Pension plans (continued)
Pension Plan Fiduciary Net Position – Detailed information regarding the fiduciary net position of the plans
administered by PEBA is available in the separately issued CAFR containing financial statements and required
supplementary information for SCRS and PORS. The CAFR of the Pension Trust Funds is publicly available on
PEBA’s Retirement Benefits’ website at www.retirement.sc.gov, or a copy may be obtained by submitting a
request to PEBA, PO Box 11960, Columbia, SC 29211-1960.
Actuarial Assumptions and Methods – Actuarial valuations of the ongoing plan involve estimates of the reported
amounts and assumptions about the probability of occurrence of events far into the future. Examples include
assumptions about future employment, mortality, and future salary increases. Amounts determined during the
valuation process are subject to continual revision as actual results are compared with past expectations and
new estimates are made about the future. South Carolina state statute requires that an actuarial experience
study be completed at least once in each five-year period. An experience report on the Systems was most
recently issued as of July 1, 2015.
The June 30, 2017, total pension liability (TPL), net pension liability (NPL), and sensitivity information shown in
PEBA’s report were determined by their consulting actuary, Gabriel, Roeder, Smith and Company (“GRS”) and
are based on an actuarial valuation performed as of July 1, 2016. The total pension liability was rolled-forward
from the valuation date to the plans’ fiscal year end, June 30, 2017, using generally accepted actuarial
principles. The Retirement System Funding and Administration Act of 2017 was signed into law April 25, 2017,
and included a provision to reduce the assumed rate of return from 7.5 percent to 7.25 percent effective July 1,
2017. As a result of this legislation, GRS made an adjustment to the calculation of the roll forward total pension
liability for this assumption change as of the measurement date of June 30, 2017.
The following table provides a summary of the actuarial assumptions and methods used as of June 30, 2017.
SCRS PORS
Actuarial cost method Entry age normal Entry age normal
Actuarial assumptions:
Investment rate of return 7.25%7.25%
Projected salary increases3.0% to 12.5% (varies by service)3.5% - 9.5% (varies by service)
Includes inflation at 2.25%2.25%
Benefit adjustments lessor of 1% or $500 annuallylessor of 1% or $500 annually
54
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2017
Note 8—Pension plans (continued)
The post-retiree mortality assumption is dependent upon the member’s job category and gender. The base
mortality assumption, the 2016 Public Retirees of South Carolina Mortality table (2016PRSC), was developed
using the Systems’ mortality experience. These base rates are adjusted for future improvement in mortality
using published Scale AA projected from the year 2016.
Post-Retiree Mortality Assumptions
Former Job Class
Educators
General Emplloyees and Members
of the General Assembly
Public Safety and Firefighters
2016 PRSC Females multiplied by
98%
2016 PRSC Males multiplied by
100%
2016 PRSC Males multiplied by
92%
Males Females
2016 PRSC Males multiplied by
125%
2016 PRSC Females multiplied by
111%
2016 PRSC Females multiplied by
111%
Long-Term Expected Rate of Return – The long-term expected rate of return on pension plan investments is
based upon 30-year capital market assumptions. Long-term expected rates of return represent assumptions
developed using an arithmetic building block approach primarily based on consensus expectations and market
based inputs. Expected returns are net of investment fees.
The expected returns, along with the expected inflation rate, form the basis for the target asset allocation
adopted at the beginning of the 2017 fiscal year. The long-term expected rate of return is produced by weighting
the expected future real rates of return by the target allocation percentage and then adding the expected
inflation which is summarized in the table below. For actuarial purposes, the 7.25 percent assumed annual
investment rate of return used in the calculation of the total pension liability includes a 5.00 percent real rate of
return and a 2.25 percent inflation component.
Long‐Term
TargetExpected Real
AllocationRate of Return
Global Equity 45%3.24%
Real Assets 8%0.41%
Opportunistic 17%0.69%
Diversified Credit 18%0.80%
Conservative Fixed Income 12%0.18%
Total expected real return 100%5.32%
Inflation for actuarial purposes 2.25%
Total expected nominal return 7.57%
Asset Class
55
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2017
Note 8—Pension plans (continued)
Discount Rate – The discount rate used to measure the total pension liability was 7.25 percent. The projection
of cash flows used to determine the discount rate assumed that contributions from participating employers in
SCRS and PORS will be made based on the actuarially determined rates based on provisions in the South
Carolina State Code of Laws. Based on those assumptions, each System’s fiduciary net position was projected
to be available to make all projected future benefit payments of current plan members. Therefore, the long-term
expected rate of return on pension plan investments was applied to all periods of projected benefit payments to
determine the total pension liability.
Sensitivity Analysis - The following table represents the City’s proportionate share of the net pension liability
calculated using the discount rate of 7.25 percent, as well as what the City’s proportionate share of the net
pension liability would be if it were calculated using a discount rate that is 1 percent lower (6.25 percent) or 1
percent higher (8.25 percent) than the current rate:
1%Current 1%
DecreaseDiscount RateIncrease
(6.25%)(7.25%)(8.25%)
SCRS 22,208,760$ 17,231,285$ 14,211,128$
PORS 10,392,139 7,696,742 5,573,710
Note 9—Interfund receivables, payables, and transfers
There were no interfund receivable and payable balances at December 31, 2017.
The following interfund transfers are reflected in the fund financial statements at December 31, 2017:
Transfer in Amount
General fund Water and Wastewater fund 383,395$
General fund Sanitation
General fund Nonmajor governmental fund
Capital Projects Fund General fund
North Augusta Public Facilities Corp.Water and Wastewater fund
North Augusta Public Facilities Corp.Sales Tax III fund
North Augusta Public Facilities Corp.Nonmajor governmental fund
Nonmajor governmental fund North Augusta Public Facilities Corp.3,517,656
10,699,613$
794,708
1,000,000
3,000,000
Transfer Out
155,173
40,075
1,808,606
Interfund transfers include transfers of unrestricted revenues collected in certain enterprise funds to finance
various programs accounted for in the General Fund, in accordance with budgetary authorizations; and,
transfers of revenues from the fund that is required to collect them and the fund that is required or allowed to
expend them.
56
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2017
Note 10—Risk management
The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors
and omissions; injuries to employees; and natural disasters. The City has joined together with other
municipalities in the state to form the South Carolina Municipal Insurance and Risk Financing Fund (“SCMIRF”),
which is a public entity risk pool currently operating as common risk management and insurance programs. The
City pays a bi-annual premium to SCMIRF for its general insurance. The SCMIRF is self-sustaining through
member premiums and will reinsure through commercial companies.
The City also has joined together with other municipalities in the state to form the South Carolina Municipal
Insurance Trust (“SCMIT”), a public entity risk pool operating as a common risk management and insurance
program for worker’s compensation. The City pays a quarterly premium to SCMIT. The SCMIT is self-sustaining
through member premiums and uses reinsurance agreements to reduce its exposure to large workers’
compensation losses.
There were no significant reductions in insurance coverage during the year. Settlements have not exceeded
insurance coverage for each of the past three years.
The City pays monthly premiums to the Public Employee Benefit Authority for its health and dental insurance
benefits.
Note 11—Commitments
Significant commitments at December 31, 2017 are composed of the following:
Expended Through
Project December 31,
Authorization2017Commitment
Rivierside Village Stadium 31,487,738$ 21,006,681$ 10,481,057$
Water Plant Upgrade 14,813,081 13,200,611 1,612,470
Riverview Park Gyms 4,730,650 3,004,574 1,726,076
51,031,469$ 37,211,866$ 13,819,603$
The City has entered into an agreement for the future operations and maintenance of the Savannah Bluff Lock
and Dam for the purpose of maintaining the Augusta Pool. The agreement is between: the City of North
Augusta; Aiken City, South Carolina; Augusta, Georgia; and four industrial stakeholders. The agreement is
contingent based on future upgrades of the Savannah Bluff Lock and Dam by the Corps of Engineers. The
agreement calls for the establishment of an escrow account in the amount of $1,000,000 to be established over
a three-year period and funded by the participating entities. The City established a separate enterprise fund,
The Savannah Bluff Lock and Dam Fund. The fund established by the City will receive all revenues associated
with the project and all direct costs incurred by the contractor or the local sponsors will be paid by the fund. The
escrow account balance of $1,000,000 was fully funded as of December 31, 2009. The Savannah Bluff Lock
and Dam will be operated within the guidelines established by the Corps of Engineers. The City will not be
directly involved in the daily operations of the facility.
57
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2017
Note 12—Contingencies
The City is a defendant in various lawsuits. In the opinion of the City’s management and the City Attorney, the
ultimate effect of these matters will not have a material adverse effect on the financial condition of the City.
Note 13—New accounting pronouncements
During the year ended December 31, 2017, the City implemented SGAS. No. 77, Tax Abatement Disclosures.
This statement requires disclosure regarding tax abatements resulting from both (a) agreements that are
entered into by the reporting government and (b) agreements that are entered into by other governments and
that reduce the reporting government’s tax revenues.
As of December 31, 2017 the City provides tax abatements under an intergovernmental agreement with Aiken
County, South Carolina (the “County”). This agreement is a form of a Fee-in-Lieu of Tax Program instigated by
the County for the purpose of creating multi-county industrial and business parks (“MCIP”), pursuant to which
certain economic incentives are available to companies locating, improving, or expanding projects within such
parks, through which the economic development of the county and the state will be promoted and trade
developed by inducing manufacturing and certain other business enterprises to locate in and remain in the State
of South Carolina. The Fee in Lieu of Tax (“FILOT”) is authorized under South Carolina Code of Laws Title 12,
Chapter 44, Title 4, Chapter 29, and/or Title 4, Chapter 12. The FILOT is used to encourage investment and
provides a reduction of property tax when a business invests a minimum of $2,500,000 within a 5-6 year
investment period (beginning with the date property is initially placed in service). Property subject to a FILOT
agreement is exempt from ad valorem property tax and is instead subject to a FILOT equal to the product of the
value of the property, an assessment ratio that is generally no lower than 6% (but may be as low as 4% for
extraordinary projects that satisfy the statutory definition of an “enhanced investment”), and a millage rage that
is either fixed for the life of the agreement or is adjusted every five years based on the trailing five-year average.
The reduction in property taxes is accomplished by a reduction of assessed value, reduction in millage rate and
elimination of (or reduction in) number of times millage rates are changed. In addition, an agreement may allow
the possible use of net present value method over term of FILOT to equalize payments. Repayment of
incentive is required by state law if taxpayer fails to meet statutory minimum investment requirement. Other
recapture provisions may be negotiated (such as a pro rata clawback for failure to meet and/or maintain
jobs/investment).
During the year ended December 31, 2017, there were no abatements under the above agreement which
resulted in the reduction of tax revenues for the City.
Note 14—Subsequent events
The City has evaluated subsequent events through May 31, 2018, the date which the financial statements were
available to be issued. As of this date, there were no material subsequent events requiring adjustment to or
disclosure in the financial statements for the year ended December 31, 2017.
58
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
REQUIRED SUPPLEMENTARY INFORMATION
DECEMBER 31, 2017
Schedule of the City’s Proportionate Share of the Net Pension Liability*
SCRS:
City's
Proportion
of the
Net Pension
Liability
City's
Proportionate
Share of the
Net Pension
Liability
City's
Covered
Employee
Payroll
City's
Proportionate
Share of the Net
Pension Liability
as a Percentage
of its Covered
Plan Fiduciary
Net Position as a
Percentage of the
Total Pension
Liability
6/30/2015 0.08%14,301,301$ 7,070,316$ 202.27%57.00%
6/30/2016 0.08%16,062,609 7,282,122 220.58%52.90%
6/30/2017 0.08%17,231,285 7,723,042 223.12%53.30%
PORS:
City's
Proportion
of the
Net Pension
Liability
City's
Proportionate
Share of the
Net Pension
Liability
City's
Covered
Employee
Payroll
City's
Proportionate
Share of the Net
Pension Liability
as a Percentage
of its Covered
Plan Fiduciary
Net Position as a
Percentage of the
Total Pension
Liability
6/30/2015 0.27%5,956,041$ 3,385,504$ 175.93%64.60%
6/30/2016 0.28%7,039,605 3,538,195 198.96%60.40%
6/30/2017 0.28%7,696,742 3,783,451 203.43%60.90%
*Scheduleisintendedtoshowinformationfor10years.Additionalyearswillbedisplayedastheybecome
available.
59
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
REQUIRED SUPPLEMENTARY INFORMATION
DECEMBER 31, 2017
Schedule of the City’s Contributions to the South Carolina Retirement System – Last 10 Fiscal Years
SCRS:
Contractually
Required
Contribution
Contributions in
Relation to the
Contractually
Required
Contribution
Contribution
Deficiency
(Excess)
City's
Covered‐
Employee
Payroll
Contributions as a
Percentage of
Covered‐
Employee
Payroll
12/31/2008 597,924$ (597,924)$ -$ 6,428,231$ 9.30%
12/31/2009 613,756 (613,756) - 6,539,272 9.39%
12/31/2010 619,447 (619,447) - 6,596,875 9.39%
12/31/2011 616,283 (616,283) - 6,608,240 9.33%
12/31/2012 656,333 (656,333) - 6,518,085 10.07%
12/31/2013 700,473 (700,473) - 6,608,240 10.60%
12/31/2014 752,690 (752,690) - 7,001,673 10.75%
12/31/2015 818,535 (818,535) - 7,452,451 10.98%
12/31/2016 824,105 (824,105) - 7,371,464 11.18%
12/31/2017 963,691 (963,691) - 7,745,243 12.44%
PORS:
Contractually
Required
Contribution
Contributions in
Relation to the
Contractually
Required
Contribution
Contribution
Deficiency
(Excess)
City's
Covered‐
Employee
Payroll
Contributions as a
Percentage of
Covered‐
Employee
Payroll
12/31/2008 308,425$ (308,425)$ -$ 2,835,719$ 10.88%
12/31/2009 324,295 (324,295) - 2,872,514 11.29%
12/31/2010 339,895 (339,895) - 3,010,428 11.29%
12/31/2011 354,152 (354,152) - 3,040,661 11.65%
12/31/2012 374,823 (374,823) - 3,116,056 12.03%
12/31/2013 374,823 (374,823) - 3,136,039 11.95%
12/31/2014 432,698 (432,698) - 3,297,144 13.12%
12/31/2015 492,613 (492,613) - 3,627,182 13.58%
12/31/2016 489,908 (489,908) - 3,599,658 13.61%
12/31/2017 560,223 (560,223) - 3,769,186 14.86%
60
OTHER SUPPLEMENTARY INFORMATION
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
SCHEDULE OF REVENUES AND EXPENDITURES COMPARED WITH BUDGET
GENERAL FUND
YEAR ENDED DECEMBER 31, 2017
2017
OriginalOver
and Final (Under)
BudgetActualBudget
Revenues:
Taxes:
Current6,584,523$ 6,711,915$ 127,392$
Delinquent10,00012,5512,551
Penalties55,00059,8944,894
Total Taxes 6,649,523 6,784,360 134,837
Licenses and Permits:
Business licenses 5,550,0005,727,383177,383
Building permits 280,000447,792167,792
Electrical permits 16,000 20,593 4,593
Mechanical permits 14,000 21,559 7,559
Plumbing permits 11,000 12,170 1,170
Total Licenses and Permits 5,871,000 6,229,497 358,497
Fines and Forfeitures:
Public safety fines 1,077,153957,206(119,947)
Drug related fines 20,000 21,420 1,420
Total Fines and Forfeitures 1,097,153 978,626 (118,527)
Charges for Services:
Fire protection fees 58,104 62,576 4,472
Customer street light fees 78,191 80,637 2,446
Municipal Center rentals 100,100 88,487(11,613)
Recreation fees
Special programs 43,500 37,590 (5,910)
Volleyball 6,480 6,855 375
Soccer 62,020 62,593 573
Miscellaneous 105,000152,316 47,316
Basketball 44,500 54,424 9,924
Softball 30,260 30,430 170
Football 35,630 41,361 5,731
Baseball 67,950 55,633(12,317)
Concession stand 140,000138,575 (1,425)
Community Center fees 61,445 66,226 4,781
Activities Center fees 187,480157,277(30,203)
Recreation facilities rentals 23,500 24,640 1,140
Activities Center tournaments 221,500231,701 10,201
Total Charges for Services 1,265,660 1,291,321 25,661
Intergovernmental:
State of South Carolina:
State shared revenue 547,529 495,667 (51,862)
Accommodations tax 36,000 42,328 6,328
Merchants' inventory tax 54,700 54,790 90
Local option sales tax 20,000 19,520 (480)
SCDOT traffic signals 81,300 77,510 (3,790)
Law enforcement net grant 10,000 2,558 (7,442)
Department of Justice grant 5,000 3,668 (1,332)
SCDHEC mosquito control grant - 23,306 23,306
Total Intergovernmental 754,529 719,347 (35,182)
(continued)
61
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
SCHEDULE OF REVENUES AND EXPENDITURES COMPARED WITH BUDGET
GENERAL FUND
YEAR ENDED DECEMBER 31, 2017
2017
OriginalOver
and Final (Under)
BudgetActualBudget
Miscellaneous:
Other 369,054 438,108 69,054
Communication tower rental190,942 133,384 (57,558)
Interest earnings40,000 44,913 4,913
Total Miscellaneous 599,996 616,405 16,409
Total Revenues 16,237,861$ 16,619,556$ 381,695$
Expenditures:
General Government:
City Council -
Personal services:
Salaries and wages 106,591$ 107,589$ 998$
FICA 8,154 7,207 (947)
Employee retirement 10,322 10,439 117
Employee insurance 30,000 28,230 (1,770)
Workers' compensation 3,406 2,329 (1,077)
Operating expenditures:
General supplies/postage 4,025 5,315 1,290
Dues/training/travel 8,510 4,854 (3,656)
Contracts/repairs 1,700 1,816 116
Advertising 300 - (300)
Professional Services 3,550 1,969 (1,581)
Special department supplies 850 578 (272)
Insurance 866 842 (24)
Contingencies 2,000 719 (1,281)
Total 180,274 171,887 (8,387)
City Administration -
Personal services:
Salaries and wages 129,446134,979 5,533
FICA 9,903 9,874 (29)
Employee retirement 15,288 15,847 559
Employee insurance 7,500 7,450 (50)
Workers' compensation 6,900 4,718 (2,182)
Unemployment insurance 25 - (25)
Operating expenditures:
General supplies/postage 1,850 1,848 (2)
Dues/training/travel 9,000 12,823 3,823
Contracts/repairs 5,150 6,903 1,753
Professional services 65,000 84,579 19,579
Insurance 2,202 2,140 (62)
Contingencies 19,368 17,027 (2,341)
Total 271,632 298,188 26,556
(continued)
62
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
SCHEDULE OF REVENUES AND EXPENDITURES COMPARED WITH BUDGET
GENERAL FUND
YEAR ENDED DECEMBER 31, 2017
2017
OriginalOver
and Final (Under)
BudgetActualBudget
General Government (continued):
Justice and Law -
Personal services:
Salaries and wages120,405 124,883 4,478
FICA9,2119,123(88)
Employee retirement14,22012,547(1,673)
Employee insurance7,5007,993493
Workers' compensation3,5642,437(1,127)
Operating expenditures:
State fees/fines582,759500,756(82,003)
Dues/training/travel5,3752,712(2,663)
Contracts and repairs10,8001,210(9,590)
Jury services2,0001,280(720)
Professional services21,93714,555(7,382)
Juvenile detention3,0003,225225
Insurance23,11622,466(650)
Total 803,887 703,187 (100,700)
Community Promotion -
Operating expenditures:
Contributions67,350 66,874 (476)
Dues/training/travel5,9315,931 -
Special department supplies14,65016,0351,385
Insurance4,2654,145(120)
Total92,196 92,985 789
Finance -
Personal services:
Salaries and wages258,288 263,945 5,657
FICA19,75919,312(447)
Employee retirement30,50430,961457
Employee insurance30,00029,113(887)
Workers' compensation7,94713,0965,149
Operating expenditures:
General supplies/postage8,20010,0481,848
Dues/training/travel2,2252,213(12)
Data processing9,00012,8693,869
Contracts/repairs22,18016,139(6,041)
Advertising1,0001,108 108
Professional services20,00022,4102,410
Insurance3,2323,141(91)
Total 412,335 424,355 12,020
(continued)
63
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
SCHEDULE OF REVENUES AND EXPENDITURES COMPARED WITH BUDGET
GENERAL FUND
YEAR ENDED DECEMBER 31, 2017
2017
OriginalOver
and Final (Under)
BudgetActualBudget
General Government (continued):
Building Standards -
Personal services:
Salaries and wages243,188 245,129 1,941
FICA 18,604 18,701 97
Employee retirement28,721 29,014 293
Employee insurance33,750 32,654 (1,096)
Workers' compensation7,526 5,227 (2,299)
Unemployment insurance 25 - (25)
Operating expenditures:
General supplies/postage3,000 3,665 665
Dues/training/travel3,737 2,242 (1,495)
Auto operating6,200 4,874 (1,326)
Data processing6,000 6,749 749
Contracts/repairs2,900 4,229 1,329
Uniforms/clothing1,350 1,125 (225)
Special department supplies2,600 4,332 1,732
Insurance1,136 1,104 (32)
Capital lease payments9,130 8,764 (366)
Capital outlay:
Vehicles- 19,91419,914
Total 367,867 387,723 19,856
Planning and Development -
Personal services:
Salaries and wages178,874 148,028 (30,846)
FICA13,68411,214(2,470)
Employee retirement21,12516,443(4,682)
Employee insurance18,75017,935(815)
Workers' compensation4,9513,386(1,565)
Unemployment insurance 253,5863,561
Operating expenditures:
General supplies/postage3,900867(3,033)
Dues/training/travel8,000476(7,524)
Auto operating- 150 150
Data processing6,8756,749(126)
Contracts/repairs4,8002,250(2,550)
Advertising1,000720(280)
Professional services8,0002,524(5,476)
Special department supplies3,500470(3,030)
Insurance2,2622,198(64)
Capital lease payments2,2002,066(134)
Total 277,946 219,062 (58,884)
City Buildings -
Operating expenditures:
General supplies/postage 24,900 15,392 (9,508)
Utility services 199,000 198,975 (25)
Contracts/repairs 76,348 70,172 (6,176)
Professional services 6,700 8,489 1,789
Special department supplies - 16 16
Insurance 23,833 23,163 (670)
Total 330,781 316,207 (14,574)
(continued)
64
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
SCHEDULE OF REVENUES AND EXPENDITURES COMPARED WITH BUDGET
GENERAL FUND
YEAR ENDED DECEMBER 31, 2017
2017
OriginalOver
and Final (Under)
BudgetActualBudget
General Government (continued):
Human Resources -
Personal services:
Salaries and wages108,932 116,696 7,764
FICA8,333 8,878 545
Employee retirement12,865 13,744 879
Employee insurance16,332 17,169 837
Workers' compensation3,576 2,445 (1,131)
Unemployment insurance25 - (25)
Operating expenditures:
General supplies/postage1,740 1,758 18
Dues/training/travel1,555 780 (775)
Contracts/repairs1,850 1,571 (279)
Advertising11,172 7,479 (3,693)
Professional services16,520 21,822 5,302
Special department supplies37,382 25,254 (12,128)
Total220,282 217,596 (2,686)
Information Technology -
Personal services:
Salaries and wages70,408 72,994 2,586
FICA5,386 5,466 80
Employee retirement8,315 8,504 189
Employee insurance11,250 11,042 (208)
Workers' compensation2,156 1,474 (682)
Operating expenditures:
General supplies/postage1,000 126 (874)
Auto operating1,825 599 (1,226)
Utility services96,700 92,011 (4,689)
Data processing31,220 29,361 (1,859)
Contracts/repairs42,900 32,726 (10,174)
Capital lease payments5,894 5,534 (360)
Total277,054 259,837 (17,217)
Total General Government 3,234,254$ 3,091,027$ (143,227)$
(continued)
65
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
SCHEDULE OF REVENUES AND EXPENDITURES COMPARED WITH BUDGET
GENERAL FUND
YEAR ENDED DECEMBER 31, 2017
2017
OriginalOver
and Final (Under)
BudgetActualBudget
Public Safety -
Personal services:
Salaries and wages4,489,316$ 4,555,037$ 65,721$
Overtime pay144,300 157,800 13,500
FICA 354,472 345,426 (9,046)
Employee retirement650,608 593,387 (57,221)
Employee insurance675,000 654,867 (20,133)
Workers' compensation140,896 119,654 (21,242)
Unemployment insurance2,000 - (2,000)
Operating expenditures:
General supplies/postage22,000 19,489 (2,511)
Dues/training/travel50,000 50,151 151
Auto operating226,750 222,615 (4,135)
Data processing107,280 101,255 (6,025)
Contracts/repairs261,100 268,557 7,457
Uniforms/clothing110,950 112,120 1,170
CVA expenditures15,000 23,627 8,627
LEN grant10,000 3,771 (6,229)
Community policing23,200 23,191 (9)
NAPS drug related account20,000 21,820 1,820
Professional services44,610 26,854 (17,756)
Special department supplies100,000 95,577 (4,423)
Insurance64,950 76,068 11,118
Capital lease payments475,967 375,652 (100,315)
Capital outlay:
Automotive equipment- 388,331 388,331
Machines and equipment10,000 6,299 (3,701)
Total Public Safety7,998,399$ 8,241,548$ 243,149$
Public Works:
Engineering -
Personal services:
Salaries and wages118,526$ 118,196$ (330)$
FICA9,067 8,868 (199)
Employee retirement13,998 14,034 36
Employee insurance 18,750 17,734 (1,016)
Workers' compensation 2,428 1,660 (768)
Unemployment insurance 25 - (25)
Operating expenditures:
General supplies/postage 500 588 88
Dues/training/travel 4,340 4,780 440
Auto operating 2,125 1,433 (692)
Data processing 2,500 1,765 (735)
Contracts/repairs 2,580 1,550 (1,030)
Uniforms/clothing 750 409 (341)
Professional services - - -
Advertising 100 39 (61)
Special department supplies 1,500 975 (525)
Insurance 18,387 17,870 (517)
Total 195,576 189,901 (5,675)
(continued)
66
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
SCHEDULE OF REVENUES AND EXPENDITURES COMPARED WITH BUDGET
GENERAL FUND
YEAR ENDED DECEMBER 31, 2017
2017
OriginalOver
and Final (Under)
BudgetActualBudget
Public Works (continued):
Street Lighting and Traffic Signals -
Operating expenditures:
Dues/training/travel2,450361(2,089)
Utility services425,000 438,04913,049
Contracts/repairs15,500 15,083(417)
Professional services6,000 - (6,000)
Special department supplies18,50031,83113,331
Total467,450 485,324 17,874
Streets and Drains -
Personal services:
Salaries and wages441,611448,2056,594
Overtime pay7,5004,909(2,591)
FICA 34,357 33,685 (672)
Employee retirement 53,040 52,861 (179)
Employee insurance 75,000 72,625 (2,375)
Workers' compensation 14,124 15,607 1,483
Unemployment insurance 500 - (500)
Operating expenditures:
General supplies/postage 500 406 (94)
Dues/training/travel 2,500 601 (1,899)
Auto operating 35,600 31,110 (4,490)
Contracts/repairs 33,640 32,724 (916)
Building materials/supplies 70,000 70,181 181
Uniforms/clothing 5,400 5,424 24
Professional services 270 112 (158)
Special department supplies 14,500 18,976 4,476
Judgments/settlements 250 235 (15)
Insurance 10,424 10,131 (293)
Capital lease payments 69,815 65,930 (3,885)
Capital outlay:
Machines and equipment 7,500 - (7,500)
Vehicles - 27,854 27,854
Total 876,531 891,576 15,045
Total Public Works 1,539,557$ 1,566,801$ 27,244$
(continued)
67
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
SCHEDULE OF REVENUES AND EXPENDITURES COMPARED WITH BUDGET
GENERAL FUND
YEAR ENDED DECEMBER 31, 2017
2017
OriginalOver
and Final (Under)
BudgetActualBudget
Parks, Recreation, and Tourism:
Recreation -
Personal services:
Salaries and wages313,865$ 330,621$ 16,756$
Overtime pay8,000 6,356 (1,644)
FICA 24,623 25,059 436
Employee retirement37,296 39,444 2,148
Employee insurance37,500 36,226 (1,274)
Workers' compensation10,944 7,155 (3,789)
Unemployment insurance25- (25)
Operating expenditures:
General supplies/postage2,400 2,400 -
Dues/training/travel9,515 9,428 (87)
Auto operating2,600 930 (1,670)
Contract/repairs7,750 6,764 (986)
Uniforms/clothing900 - (900)
Advertising1,500 1,488 (12)
Rent800 - (800)
Professional services42,600 40,419 (2,181)
Special department supplies111,450 175,775 64,325 Basketball program41,200 43,726 2,526
Softball program28,000 31,876 3,876 Football program32,500 39,872 7,372
Baseball program67,000 52,899 (14,101) Soccer program55,500 52,225 (3,275)
Volleyball program4,700 5,315 615
Concession stand supplies115,000 114,068 (932)
Insurance16,701 16,231 (470)
Capital outlay:
Furniture/fixtures1,500 - (1,500)
Machines/equipment12,500 12,034 (466)
Total986,369 1,050,311 63,942
Parks -
Personal services:
Salaries and wages 201,687 204,386 2,699
Overtime pay12,000 15,013 3,013
FICA 16,347 16,482 135
Employee retirement25,236 25,837 601
Employee insurance37,500 36,470 (1,030)
Workers' compensation6,676 5,304 (1,372)
Unemployment insurance250 - (250)
Operating expenditures:
General supplies/postage1,500 1,500 -
Dues/training/travel1,150 1,018 (132)
Auto operating11,750 10,917 (833)
Utility services61,425 66,891 5,466
Contracts/repairs108,580 108,769 189 Building materials/supplies27,100 27,103 3
Uniforms/clothing2,100 1,870 (230) Professional services4,000 4,021 21
Special department supplies18,500 18,818 318 Insurance 7,271 7,067 (204)
Capital lease payments 12,100 12,041 (59)
Capital outlay:
Machines/equipment 6,700 5,075 (1,625)
Park improvements 31,040 - (31,040)
Total 592,912 568,582 (24,330)
(continued)
68
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
SCHEDULE OF REVENUES AND EXPENDITURES COMPARED WITH BUDGET
GENERAL FUND
YEAR ENDED DECEMBER 31, 2017
2017
OriginalOver
and Final (Under)
BudgetActualBudget
Parks, Recreation, and Tourism (continued):
Property Maintenance -
Personal services:
Salaries and wages541,124 542,129 1,005
Overtime pay13,128 13,814 686
FICA42,40040,587(1,813)
Employee retirement65,45765,168(289)
Employee insurance105,000101,685(3,315)
Workers' compensation16,64827,40810,760
Unemployment insurance250- (250)
Operating expenditures:
General supplies/postage8488546
Dues/training/travel2,4002,41010
Auto operating40,000 51,400 11,400
Utility services16,824 20,799 3,975
Contracts/repairs30,000 37,995 7,995
Building materials/supplies5,000 3,807 (1,193)
Uniforms/clothing7,970 6,424 (1,546)
Professional services123,661 110,027 (13,634)
Special department supplies131,780 137,997 6,217
SCDHEC mosquito control grant- 8,138 8,138
Insurance18,535 18,426 (109)
Capital lease payments56,723 54,165 (2,558)
Capital outlay:
Automotive equipment- 31,585 31,585
Machines/equipment19,132 25,603 6,471
Total1,236,880 1,300,421 63,541
Community Center -
Personal services:
Salaries and wages75,237 77,620 2,383
Overtime pay2,000 1,786 (214)
FICA 5,909 6,050 141
Employee retirement9,122 9,330 208
Employee insurance15,000 14,516 (484)
Workers' compensation2,458 1,681 (777)
Unemployment insurance50 - (50)
Operating expenditures:
General supplies/postage2,800 226 (2,574)
Auto operating300 122 (178)
Utility services22,000 22,939 939
Contracts/repairs15,200 27,516 12,316
Uniforms/clothing650 637 (13)
Advertising3,000 2,958 (42)
Professional services2,000 - (2,000)
Special department supplies7,000 6,998 (2)
Insurance3,239 3,148 (91)
Total165,965 175,527 9,562
(continued)
69
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
SCHEDULE OF REVENUES AND EXPENDITURES COMPARED WITH BUDGET
GENERAL FUND
YEAR ENDED DECEMBER 31, 2017
2017
OriginalOver
and Final (Under)
BudgetActualBudget
Parks, Recreation, and Tourism (continued):
RVP Activities Center -
Personal services:
Salaries and wages322,064 323,325 1,261
Overtime pay12,000 5,390 (6,610)
FICA 25,556 23,996 (1,560)
Employee retirement39,453 38,534 (919)
Employee insurance52,500 50,508 (1,992)
Workers' compensation9,455 6,038 (3,417)
Unemployment insurance1,500 - (1,500)
Operating expenditures:
General supplies/postage10,500 12,489 1,989
Dues/training/travel1,400 875 (525)
Auto operating1,650 507 (1,143)
Utility services127,044 129,459 2,415
Data processing- 2,671 2,671
Contracts/repairs70,095 62,877 (7,218)
Uniforms/clothing1,400 513 (887)
Advertising2,300 1,200 (1,100)
Tournaments/special events105,000 132,216 27,216
Special department supplies29,500 24,720 (4,780)
Insurance15,223 14,795 (428)
Capital outlay:
Furniture/fixtures16,000 25,665 9,665
Total842,640 855,778 13,138
Tourism -
Personal services:
Salaries and wages122,098 126,440 4,342
Overtime pay5,000 2,865 (2,135)
FICA 9,723 9,581 (142)
Employee retirement15,010 15,133 123
Employee insurance22,500 21,859 (641)
Workers' compensation4,037 2,761 (1,276)
Operating expenditures:
General supplies/postage6,000 8,532 2,532
Data processing2,160 - (2,160)
Uniforms/clothing1,000 439 (561)
Advertising8,000 6,746 (1,254)
Professional services4,000 1,789 (2,211)
Special department supplies20,000 19,515 (485)
Total219,528 215,660 (3,868)
Total Parks, Recreation, and Tourism4,044,294$ 4,166,279$ 121,985$
Interest and fiscal charges- 20,788 20,788
Total Expenditures16,816,504$ 17,086,443$ 269,939$
70
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
DECEMBER 31, 2017
Total
Capital Special Nonmajor
ProjectsRevenue Governmental
Funds Funds Funds
ASSETS
Equity in pooled cash 812,894$ 676,776$ 1,489,670$
Investments 587,596 665,738 1,253,334
Restricted cash and investments 2,607,705 124,302 2,732,007
Total Assets 4,008,195$ 1,466,816$ 5,475,011$
LIABILITIES
Accounts payable 1,796$ 1,468$ 3,264$
Accrued salary and wages - 548 548
Unearned revenue - assessment fees 83,772 - 83,772
Total Liabilities 85,568 2,016 87,584
FUND BALANCES
Fund balances:
Restricted for:
Capital projects 2,607,705 - 2,607,705
Public safety (Fire Division)- 123,410 123,410
Committed for:
Capital projects 947,879 - 947,879
Parks, recreation and tourism - 18,380 18,380
Special projects - 1,323,010 1,323,010
Assigned for:
Capital projects 367,043 - 367,043
Total Fund Balances 3,922,627 1,464,800 5,387,427
Total Liabilities and Fund Balances 4,008,195$ 1,466,816$ 5,475,011$
71
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
COMBINING BALANCE SHEET
NONMAJOR CAPITAL PROJECTS FUNDS
DECEMBER 31, 2017
Sales Sales Street TaxTransportationProject Jackson
Tax Tax IIImprovementsIncrementImprovementConstruction
Fund Fund Fund Fund Fund Fund Total
ASSETS
Equity in pooled cash -$ -$ 455,969$ 267,103$ 89,822$ -$ 812,894$
Investments - - 157,133 303,117 127,346 - 587,596
Restricted cash and investments 106,077 1,745,265 100,000 - 656,363 - 2,607,705
Total Assets 106,077$ 1,745,265$ 713,102$ 570,220$ 873,531$ -$ 4,008,195$
LIABILITIES
Accounts payable -$ -$ 1,796$ -$ -$ -$ 1,796$
Unearned revenue - assessment fees - - - - 83,772 - 83,772
Total Liabilities - - 1,796 - 83,772 - 85,568
FUND BALANCES
Fund balances:
Restricted for:
Capital projects 106,077 1,745,265 100,000 - 656,363 - 2,607,705
Committed for:
Capital projects - - 262,420 570,220 115,239 - 947,879
Assigned for:
Capital projects- - 348,886 - 18,157 - 367,043
Total Fund Balances 106,077 1,745,265 711,306 570,220 789,759 - 3,922,627
Total Liabilities and Fund Balances 106,077$ 1,745,265$ 713,102$ 570,220$ 873,531$ -$ 4,008,195$
72
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
COMBINING BALANCE SHEET
NONMAJOR SPECIAL REVENUE FUNDS
DECEMBER 31, 2017
Riverfront/
Central Core
RecreationFireman's Redevelopment
FundFundFundTotals
ASSETS
Equity in pooled cash 18,956$ -$ 657,820$ 676,776$
Investments - - 665,738 665,738
Restricted cash and investments - 124,302 - 124,302
Total Assets 18,956$ 124,302$ 1,323,558$ 1,466,816$
LIABILITIES
Accounts payable 576$ 892$ -$ 1,468$
Accrued salary and wages - - 548 548
Total Liabilities 576 892 548 2,016
FUND BALANCES
Fund balances:
Restricted for:
Public safety (Fire Division)- 123,410 - 123,410
Committed for:
Parks, recreation and tourism18,380 - - 18,380
Special projects- - 1,323,010 1,323,010
Total Fund Balances 18,380 123,410 1,323,010 1,464,800
Total Liabilities and Fund Balances 18,956$ 124,302$ 1,323,558$ 1,466,816$
73
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
COMBINING STATEMENTS OF REVENUES, EXPENDITURES, AND CHANGES IN
FUND BALANCES ‐ NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED DECEMBER 31, 2017
Total
Capital SpecialNonmajor
ProjectsRevenueGovernmental
FundsFundsFunds
Revenues:
Ad valorem property taxes 613,831$ -$ 613,831$
Local hospitality and accommodations taxes - 790,749 790,749
Intergovernmental 380,526 61,581 442,107
Interest earnings 33,865 12,317 46,182
Miscellaneous - 5,415 5,415
Total Revenues 1,028,222 870,062 1,898,284
Expenditures:
Current:
General government38,612 - 38,612
Public safety- 55,913 55,913
Public works14,452 - 14,452
Recreation and parks- 1,080 1,080
Capital outlay414,951 - 414,951
Debt Service:
Capital lease payments- 3,466,970 3,466,970
Interest and fiscal charges- 50,686 50,686
Total Expenditures468,015 3,574,649 4,042,664
Other Financing Sources (Uses):
Transfers in - 3,517,656 3,517,656
Transfers out(421,665) (1,427,016) (1,848,681)
Total Other Financing Sources (Uses)(421,665) 2,090,640 1,668,975
Net change in fund balance138,542 (613,947) (475,405)
Fund balance, beginning of year3,784,085 2,078,747 5,862,832
Fund balance, end of year3,922,627$ 1,464,800$ 5,387,427$
74
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
COMBINING STATEMENTS OF REVENUES, EXPENDITURES, AND CHANGES IN
FUND BALANCES ‐ NONMAJOR CAPITAL PROJECTS FUNDS
YEAR ENDED DECEMBER 31, 2017
Sales Sales Street TaxTransportationProject Jackson
Tax Tax IIImprovementsIncrementImprovementConstruction
Fund Fund Fund Fund Fund Fund Totals
Revenues:
Ad valorem property taxes -$ -$ -$ 613,831$ -$ -$ 613,831$
Intergovernmental- - 380,526 - - - 380,526
Interest earnings1,881 15,999 3,780 3,349 8,856 - 33,865
Total Revenues1,881 15,999 384,306 617,180 8,856 - 1,028,222
Expenditures:
Current:
General government- - - 38,612 - - 38,612
Public works- - 14,452- - - 14,452
Capital outlay- 847 380,526 33,578 - - 414,951
Total Expenditures- 847 394,978 72,190 - - 468,015
Other Financing Sources (Uses):
Transfers out (299,654) - - (113,031) - (8,980) (421,665)
Total Other Financing Sources (Uses)(299,654) - - (113,031) - (8,980) (421,665)
Net change in fund balance(297,773) 15,152 (10,672) 431,959 8,856 (8,980) 138,542
Fund balance, beginning of year403,850 1,730,113 721,978 138,261 780,903 8,980 3,784,085
Fund balance, end of year106,077$ 1,745,265$ 711,306$ 570,220$ 789,759$ -$ 3,922,627$
75
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
COMBINING STATEMENTS OF REVENUES, EXPENDITURES, AND CHANGES IN
FUND BALANCES ‐ NONMAJOR SPECIAL REVENUE FUNDS
YEAR ENDED DECEMBER 31, 2017
Riverfront/
Central Core
RecreationFireman'sRedevelopment
FundFundFundTotals
Revenues:
Local hospitality and accommodations taxes -$ -$ 790,749$ 790,749$
Intergovernmental - 61,581 - 61,581
Interest earnings 45 281 11,991 12,317
Miscellaneous 5,415 - - 5,415
Total Revenues 5,460 61,862 802,740 870,062
Expenditures:
Current:
Public safety- 55,913 - 55,913
Recreation and parks- - 1,080 1,080
Debt Service:
Capital lease payments- - 3,466,970 3,466,970
Interest and fiscal charges- - 50,686 50,686
Total Expenditures- 55,913 3,518,736 3,574,649
Other Financing Uses:
Transfers in - - 3,517,656 3,517,656
Transfers out - - (1,427,016) (1,427,016)
Total Other Financing Uses - - 2,090,640 2,090,640
Net change in fund balance 5,460 5,949 (625,356) (613,947)
Fund balance, beginning of year 12,920 117,461 1,948,366 2,078,747
Fund balance, end of year 18,380$ 123,410$ 1,323,010$ 1,464,800$
76
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
SCHEDULE OF REVENUES AND EXPENSES ‐ BUDGETED AND ACTUAL
ENTERPRISE FUND ‐ WATER AND WASTEWATER SYSTEM
YEAR ENDED DECEMBER 31, 2017
2017
OriginalOver
and Final(Under)
BudgetActualBudget
Operating Revenues:
Water sales3,290,034$ 3,255,072$ (34,962)$
Sewer sales5,599,871 5,757,850 157,979
Water tap fees56,000 154,708 98,708
Sewer tap fees87,000 279,454 192,454
Fire protection fees11,741 11,970 229
Other442,190 507,335 65,145
Total Operating Revenues9,486,836 9,966,389 479,553
Operating Expenses:
Utilities Finance506,402 520,188 13,786
Utilities Administration967,278 926,102 (41,176)
Water Operations and Maintenance840,302 799,847 (40,455)
Water Production and Treatment1,393,579 1,445,335 51,756
Wastewater Operations and Maintenance3,588,346 3,481,640 (106,706)
Depreciation and amortization- 1,050,929 1,050,929
Total Operating Expenses7,295,907 8,224,041 928,134
Nonoperating Revenues (Expenses):
Interest income25,000 108,509 83,509
Interest expense and fiscal charges- (135,514) (135,514)
Gain on sale of capital assets - 26,869 26,869
Total Nonoperating Revenues (Expenses):25,000 (136) (25,136)
Income before contributions and operating transfers2,215,929 1,742,212 (473,717)
Capital contributions- 479,544 479,544
Transfers in- - -
Transfers out(1,573,395) (1,383,395) 190,000
Change in net position642,534$ 838,361$ 195,827$
77
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
SCHEDULE OF OPERATING EXPENSES ‐ BUDGETED AND ACTUAL
ENTERPRISE FUND ‐ WATER AND WASTEWATER SYSTEM
YEAR ENDED DECEMBER 31, 2017
2017
OriginalOver
and Final(Under)
BudgetActualBudget
Utilities Finance:
Personal services:
Salaries and wages194,951$ 188,399$ (6,552)$
FICA14,914 14,082 (832)
Employee retirement23,024 42,807 19,783
Employee insurance30,000 29,338 (662)
Workers' compensation3,929 2,687 (1,242)
Operating expenses:
General supplies/postage79,000 87,922 8,922
Dues/training/travel3,805 2,110 (1,695)
Data processing72,000 74,155 2,155
Contracts and repairs26,300 24,340 (1,960)
Professional services22,175 18,614 (3,561)
Special department supplies500 278 (222)
Insurance4,804 4,669 (135)
Bad debts31,000 30,787 (213)
Total Utilities Finance506,402 520,188 13,786
Utilities Administration:
Personal services:
Salaries and wages507,158526,46519,307
Overtime pay 5,882 12,020 6,138
FICA 39,353 38,214 (1,139)
Employee retirement 62,791121,058 58,267
Employee insurance 72,090 69,739 (2,351)
Workers' compensation 15,736 10,761 (4,975)
Unemployment insurance 325 - (325)
Operating expenses:
General supplies/postage 4,685 3,924 (761)
Dues/training/travel 5,405 6,178 773
Auto operating 11,525 10,694 (831)
Utility services 14,513 10,530 (3,983)
Contracts and repairs 86,518 78,359 (8,159)
Building material 500 425 (75)
Uniforms and clothing 3,220 1,699 (1,521)
Professional services 37,707 4,512 (33,195)
Data processing 34,600 23,222(11,378)
Special department supplies 41,236 6,358(34,878)
Lease purchase 22,034 - (22,034)
Insurance 2,000 1,944 (56)
Total Utilities Administration 967,278 926,102 (41,176)
(continued)
78
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
SCHEDULE OF OPERATING EXPENSES ‐ BUDGETED AND ACTUAL
ENTERPRISE FUND ‐ WATER AND WASTEWATER SYSTEM
YEAR ENDED DECEMBER 31, 2017
2017
OriginalOver
and Final(Under)
BudgetActualBudget
Water Operations and Maintenance:
Personal services:
Salaries and wages345,020 350,464 5,444
Overtime pay15,426 18,578 3,152
FICA27,574 26,470 (1,104)
Employee retirement42,569 83,752 41,183
Employee insurance60,000 57,385 (2,615)
Workers' compensation11,179 7,976 (3,203)
Unemployment insurance100- (100)
Operating expenses:
Dues/training2,000 1,500 (500)
Auto operating29,460 39,185 9,725
Contracts and repairs19,184 14,753 (4,431)
Building material10,320 11,907 1,587
Uniforms and clothing5,999 3,118 (2,881)
Advertising2,100387 (1,713)
Professional services- 112 112
Special department supplies116,034 114,361 (1,673)
Judgments/settlements250 2,837 2,587
Insurance3,869 3,760 (109)
Line upgrades83,00763,302(19,705)
Leases56,211 - (56,211)
Small equipment10,000 - (10,000)
Total Water Operations and Maintenance840,302 799,847 (40,455)
Water Production and Treatment:
Personal services:
Salaries and wages437,734 438,554 820
Overtime pay31,780 29,636 (2,144)
FICA35,918 32,966 (2,952)
Employee retirement55,450 111,521 56,071
Employee insurance 60,000 57,385 (2,615)
Workers' compensation 15,369 10,510 (4,859)
Unemployment insurance 250 - (250)
Operating expenses:
General supplies 3,500 2,539 (961)
Dues/training 7,350 4,877 (2,473)
Auto operating 5,387 5,036 (351)
Utility services 403,560 462,226 58,666
Contracts and repairs 108,348 102,328 (6,020)
Building material 2,500 2,238 (262)
(continued)
79
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
SCHEDULE OF OPERATING EXPENSES ‐ BUDGETED AND ACTUAL
ENTERPRISE FUND ‐ WATER AND WASTEWATER SYSTEM
YEAR ENDED DECEMBER 31, 2017
2017
OriginalOver
and Final(Under)
BudgetActualBudget
Water Production and Treatment (continued):
Operating expenses (continued):
Uniforms and clothing3,500 2,366 (1,134)
Professional services55,480 51,971 (3,509)
ACPSA treatment charges4,500 4,919 419
Special department supplies146,310 114,150 (32,160)
Insurance12,463 12,113 (350)
Leases4,180 - (4,180)
Total Water Production and Treatment1,393,579 1,445,335 51,756
Wastewater Operations and Maintenance:
Personal services:
Salaries and wages433,848 442,106 8,258
Overtime pay 13,753 23,727 9,974
FICA 34,241 32,658 (1,583)
Employee retirement 52,862 106,242 53,380
Employee insurance75,000 71,731 (3,269)
Workers' compensation14,287 11,478 (2,809)
Unemployment insurance 250 - (250)
Operating expenses:
Dues/training1,100 500 (600)
Auto operating 23,868 41,943 18,075
Utility services 70,547 65,184 (5,363)
Contracts and repairs 66,706 91,979 25,273
Building material 12,750 14,932 2,182
Uniforms and clothing 6,180 4,127 (2,053)
Professional services - 2,717 2,717
ACPSA treatment charges 2,672,925 2,525,783 (147,142)
Special department supplies 16,890 3,462 (13,428)
Judgments/settlements 250 - (250)
Insurance 41,472 43,071 1,599
Leases 43,417 - (43,417)
Small equipment 8,000 - (8,000)
Total Wastewater Operations and Maintenance3,588,346 3,481,640 (106,706)
Depreciation and amortization- 1,050,929 1,050,929
Total Operating Expenses7,295,907$ 8,224,041$ 928,134$
80
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
SCHEDULE OF REVENUES AND EXPENSES ‐ BUDGETED AND ACTUAL
ENTERPRISE FUND ‐ SANITATION SERVICES
YEAR ENDED DECEMBER 31, 2017
2017
OriginalOver
and Final(Under)
BudgetActualBudget
Operating Revenues:
Sanitation service fees3,180,432$ 3,253,760$ 73,328$
Recycling fees670,000 792,085 122,085
Sale of recyclables250,000 426,436 176,436
Other40,254 53,305 13,051
Total Operating Revenues4,140,686 4,525,586 384,900
Operating Expenses:
Sanitation operations2,512,092 2,355,869 (156,223)
Material recovery facility1,485,421 1,465,494 (19,927)
Depreciation- 682,703 682,703
Total Operating Expenses3,997,513 4,504,066 506,553
Nonoperating Revenues (Expenses):
Intergovernmental - 10,161 10,161
Interest revenue 12,000 18,602 6,602
Interest expense- (32,076) (32,076)
Gain on disposal of assets- 51,878 51,878
Total Nonoperating Revenues12,000 48,565 36,565
Income before transfers 155,173 70,085 (85,088)
Transfers out(155,173) (155,173) -
Change in net position-$ (85,088)$ (85,088)$
81
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
SCHEDULE OF OPERATING EXPENSES ‐ BUDGETED AND ACTUAL
ENTERPRISE FUND ‐ SANITATION SERVICES
YEAR ENDED DECEMBER 31, 2017
2017
OriginalOver
and Final(Under)
BudgetActualBudget
Sanitation Operations:
Personal services:
Salaries and wages1,110,346$ 1,078,466$ (31,880)$
Overtime pay 13,300 26,008 12,708
FICA 86,059 81,354 (4,705)
Employee retirement 134,098262,331128,233
Employee insurance195,804188,631(7,173)
Workers' compensation33,57324,242(9,331)
Unemployment insurance2,000- (2,000)
Operating expenses:
General supplies1,4281,015(413)
Dues/training3,4823,135(347)
Auto operating 349,457323,913(25,544)
Utility services 21,049 26,153 5,104
Data processing 8,900 11,067 2,167
Contracts and repairs 29,608 32,618 3,010
Uniforms and clothing 10,830 6,466 (4,364)
Advertising 2,100 1,678 (422)
Professional services 11,364 7,895 (3,469)
Special department supplies 245,020244,923 (97)
Judgments/settlements 250 6,000 5,750
Leases 223,853 - (223,853)
Insurance 29,571 29,974 403
Total Sanitation Operations 2,512,092 2,355,869 (156,223)
(continued)
82
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
SCHEDULE OF OPERATING EXPENSES ‐ BUDGETED AND ACTUAL
ENTERPRISE FUND ‐ SANITATION SERVICES
YEAR ENDED DECEMBER 31, 2017
2017
OriginalOver
and Final(Under)
BudgetActualBudget
Material Recovery Facility:
Personal services:
Salaries and wages388,992 355,140 (33,852)
Overtime pay19,230 19,033 (197)
FICA31,229 27,441 (3,788)
Employee retirement48,211 89,463 41,252
Employee insurance63,750 61,214 (2,536)
Workers' compensation12,427 23,786 11,359
Unemployment insurance500 - (500)
Operating expenses:
General supplies900 261 (639)
Dues/training605 625 20
Auto operating83,413 98,801 15,388
Utility services17,409 18,721 1,312
Contracts and repairs82,182 132,054 49,872
Building material2,360 522 (1,838)
Recycling expenses46,155 21,231 (24,924)
Uniforms and clothing4,170 4,301 131
Professional services220,618 168,350 (52,268)
Special department supplies349,564 423,725 74,161
Leases 92,277 - (92,277)
Insurance21,429 20,826 (603)
Total Material Recovery Facility 1,485,421 1,465,494 (19,927)
Depreciation- 682,703 682,703
Total Operating Expenses3,997,513$ 4,504,066$ 506,553$
83
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
SCHEDULE OF REVENUES AND EXPENSES ‐ BUDGETED AND ACTUAL
ENTERPRISE FUND ‐ STORMWATER UTILITY FUND
YEAR ENDED DECEMBER 31, 2017
2017
OriginalOver
and Final(Under)
BudgetActualBudget
Operating Revenues:
Stormwater utility fees758,000$ 770,135$ 12,135$
Other6,871 12,173 5,302
Total Operating Revenues764,871 782,308 17,437
Operating Expenses:
Stormwater operations768,871 555,331 (213,540)
Depreciation- 83,303 83,303
Total Operating Expenses768,871 638,634 (130,237)
Nonoperating Revenues (Expenses):
Interest revenue4,000 8,407 4,407
Total Nonoperating Revenues 4,000 8,407 4,407
Income before contributions - 152,081 152,081
Contributions - 956,785 956,785
Change in net position -$ 1,108,866$ 1,108,866$
84
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
SCHEDULE OF OPERATING EXPENSES ‐ BUDGETED AND ACTUAL
ENTERPRISE FUND ‐ STORMWATER UTILITY FUND
YEAR ENDED DECEMBER 31, 2017
2017
OriginalOver
and Final(Under)
BudgetActualBudget
Stormwater Operations:
Personal services:
Salaries and wages312,496$ 328,31415,818$
Overtime pay 1,800 1,439 (361)
FICA 23,922 23,386 (536)
Employee retirement 36,906 71,212 34,306
Employee insurance37,74036,220(1,520)
Workers' compensation8,500 5,813 (2,687)
Unemployment insurance200 - (200)
Operating expenses:
General supplies1,4001,378 (22)
Dues/training4,4254,355(70)
Auto operating 7,900 5,179 (2,721)
Data processing36,60035,594(1,006)
Contracts and repairs6,3405,250 (1,090)
Uniforms and clothing2,000 1,993 (7)
Advertising 3,000 2,694 (306)
Professional services 20,339 20,355 16
Special department supplies 6,060 5,540 (520)
Insurance 6,800 6,609 (191)
Drainage projects 252,443 - (252,443)
Total Stormwater Operations 768,871 555,331 (213,540)
Depreciation - 83,303 83,303
Total Operating Expenses 768,871$ 638,634$ (130,237)$
85
SCHEDULE REQUIRED BY STATE LAW
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
SCHEDULE OF FINES, ASSESSMENTS, AND SURCHARGES
GENERAL FUND
YEAR ENDED DECEMBER 31, 2017
Court Fines:
Court fines collected 379,658$
Court fines retained by City 379,658
Court fines remitted to State Treasurer -$
Court Assessments:
Court assessments collected368,050$
Court assessments retained by City40,940
Court assessments remitted to State Treasurer 327,110$
Court Surcharges:
Court surcharges collected 208,991$
Court surcharges retained by City 35,230
Court surcharges remitted to State Treasurer 173,761$
Victim Services:
Court assessments allocated to Victim Services 40,940$
Court surcharges allocated to Victim Services 10,687
Funds allocated to Victim Services 51,627
Victim Services Expenditures 47,828
Funds Allocated to Victim Services in Excess of Victim Services Expenditures 3,799
Funds available for carryforward - beginning of year 103,644
Funds available for carryforward - end of year 107,443$
86
North
Augusta vy
South Carolina 's Riverfront
STATISTICAL SECTION
This part of the City of North Augusta’s Comprehensive Financial Report presents detailed information as a
context for understanding what the information in the financial statements, note disclosures, and required
supplementary information says about the City’s overall financial health.
CONTENTS PAGE
FINANCIAL TRENDS 87 – 91
These schedules contain trend information to help the reader understand how the
City’s financial performance and well-being have changed over time.
REVENUE CAPACITY 92 – 98
These schedules contain information to help the reader assess the factors affecting the
government’s ability to generate its property taxes and other major sources of revenue.
DEBT CAPACITY 99 – 103
These schedules contain information to help the reader assess the affordability of the
City’s current levels of outstanding debt and the City’s ability to issue additional debt in
the future.
DEMOGRAPHIC AND ECONOMIC INFORMATION 104 – 105
These schedules offer demographic and economic indicators to help the reader
understand the environment within which the City’s financial activities take place and to
help make comparisons over time with other governments.
OPERATING INFORMATION 106 – 110
These schedules contain information about the City’s operations and resources to help
the reader understand how the City’s financial information relates to the services the
City provides and the activities the City performs. A history of rates and charges is also
presented.
SOURCES: Unless otherwise noted, the information in these schedules is derived from the City of North
Augusta’s Comprehensive Annual Financial Reports for the relevant year.
North
Augusta vy
South Carolina 's Riverfront
2008 2009 2010 2011 2012
Governmental activities
Net investment in capital assets 37,222,478$ 43,873,602$ 44,780,462$ 48,387,572$ 51,180,628$
Restricted 47,801 9,771 5,461 9,158,402 7,210,998
Unrestricted 14,824,747 12,594,803 15,028,645 6,382,049 7,342,802
Total governmental activities net position 52,095,026$ 56,478,176$ 59,814,568$ 63,928,023$ 65,734,428$
Business-type activities
Net investment in capital assets 39,260,545$ 40,738,413$ 41,186,486$ 44,889,398$ 46,022,914$
Restricted 8,669,853 9,329,287 10,537,438 9,422,871 10,116,845
Unrestricted 9,366,037 9,289,594 9,417,349 8,342,254 8,233,390
Total business-type activities net position 57,296,435$ 59,357,294$ 61,141,273$ 62,654,523$ 64,373,149$
Primary Government
Net investment in capital assets 76,483,023$ 84,612,015$ 85,966,948$ 93,276,970$ 97,203,542$
Restricted 8,717,654 9,339,058 10,542,899 18,581,273 17,327,843
Unrestricted 24,190,784 21,884,397 24,445,994 14,724,303 15,576,192
Total primary government net position 109,391,461$ 115,835,470$ 120,955,841$ 126,582,546$ 130,107,577$
2013 2014 2015 2016 2017
Governmental activities
Net investment in capital assets 53,791,597$ 57,779,457$ 59,649,524$ 60,261,553$ 46,115,747$
Restricted 7,810,702 7,536,710 6,964,338 7,616,189 23,744,254
Unrestricted 5,466,773 4,267,933 (6,848,500) (5,705,943) (5,641,833)
Total governmental activities net position 67,069,072$ 69,584,100$ 59,765,362$ 62,171,799$ 64,218,168$
Business-type activities
Net investment in capital assets 47,734,609$ 51,802,542$ 53,610,839$ 53,203,765$ 55,927,179$
Restricted 10,104,431 9,883,717 10,248,230 11,374,284 9,618,737
Unrestricted 7,777,449 6,767,765 (1,175,007) (387,763) 492,016
Total business-type activities net position 65,616,489$ 68,454,024$ 62,684,062$ 64,190,286$ 66,037,932$
Primary Government
Net investment in capital assets 101,526,206$ 109,581,999$ 113,260,363$ 113,465,318$ 102,042,926$
Restricted 17,915,133 17,420,427 17,212,568 18,990,473 33,362,991
Unrestricted 13,244,222 11,035,698 (8,023,507) (6,093,706) (5,149,817)
Total primary government net position 132,685,561$ 138,038,124$ 122,449,424$ 126,362,085$ 130,256,100$
Note: A prior period adjustment for ad valorem property tax revenues and related allowance of $28,681 required a restatement of beginning net position for Fiscal Year 2014
Note: GASB 68, Accounting and Financial Reporting for Pensions and GASB 71 Pension Transition for Contributions Made Subsequent to the
Measurement Date, were adopted by the City for Fiscal Year 2015. A restatement of beginning net position of $18,624,474 was required to reflect implementation.
City of North Augusta, South CarolinaNet Position by ComponentLast Ten Fiscal Years
(accrual basis of accounting)
Year Ending December 31
Year Ending December 31
87
2008 2009 2010 2011 2012Expenses
Governmental activities: General government 2,890,989$ 3,646,500$ 3,798,574$ 3,416,002$ 3,574,637$
Public safety 5,265,573 5,414,709 5,898,849 6,546,364 6,975,047 Public works 2,692,210 1,883,507 1,796,722 2,796,708 2,980,032
Recreation and parks 3,763,461 3,623,796 3,994,496 3,792,045 4,053,013
Debt service - interest and fees 433,418 476,037 380,060 358,055 340,610 Loss on debt defeasance - - - - -
Total governmental activities expenses 15,045,651$ 15,044,549$ 15,868,701$ 16,909,174$ 17,923,339$
Business-type activities:
Water and wastewater 6,694,797$ 6,782,763$ 6,994,927$ 7,220,770$ 6,958,202$ Sanitation 3,239,034 3,012,364 3,054,296 3,168,553 3,160,647
Stormwater utility 373,803 529,291 519,481 542,919 568,984 Savannah Bluff Lock and Dam - 6,062 23,275 22,000 24,000
Total business-type activities expenses 10,307,634$ 10,330,480$ 10,591,979$ 10,954,242$ 10,711,833$
Total primary government expenses 25,353,285$ 25,375,029$ 26,460,680$ 27,863,416$ 28,635,172$
Program Revenues
Governmental activities: Charges for services:
General government 4,481,413$ 4,344,903$ 4,386,190$ 4,605,180$ 4,711,699$ Public safety 897,428 945,905 1,082,900 1,177,117 1,092,699
Public Works 39,605 41,692 42,894 40,512 46,970
Recreation and parks 931,614 921,644 1,110,505 1,060,317 1,019,548 Operating grants and contributions 817,172 748,276 850,731 1,334,520 801,328
Capital grants and contributions 1,768,611 1,813,172 489,270 1,569,830 1,619,796 Total governmental activities program revenues 8,935,843$ 8,815,592$ 7,962,490$ 9,787,476$ 9,292,040$
Business-type activities: Charges for services:
Water and wastewater 7,537,277$ 7,714,553$ 8,148,497$ 8,450,349$ 8,388,987$ Sanitation 3,308,538 3,182,076 3,384,930 3,400,975 3,388,623
Stormwater utility 547,766 554,394 563,305 572,288 573,660
Capital grants and contributions 3,091,789 955,928 511,472 245,500 206,463 Total business-type activities program revenues 14,485,370$ 12,406,951$ 12,608,204$ 12,669,112$ 12,557,733$
Total primary government program revenues 23,421,213$ 21,222,543$ 20,570,694$ 22,456,588$ 21,849,773$
Net (expense) / revenue
Governmental activities (6,109,808)$ (6,228,957)$ (7,906,211)$ (7,121,698)$ (8,631,299)$ Business-type activities 4,177,736 2,076,471 2,016,225 1,714,870 1,845,900
Total primary government net expense (1,932,072)$ (4,152,486)$ (5,889,986)$ (5,406,828)$ (6,785,399)$
General Revenues and Other Changes in Net PositionGovernmental activities:
Ad valorem property taxes 5,498,319$ 5,994,545$ 6,142,064$ 6,294,172$ 6,780,783$ Capital projects sales taxes 3,415,808 3,331,626 3,354,214 3,474,959 1,861,677
Local hospitality and accommodations taxes 550,501 548,490 555,230 559,853 584,227
Interest on investments 533,146 92,616 54,755 33,350 77,894 Miscellaneous 198,679 106,871 577,187 336,245 590,882
Transfers 396,667 537,959 559,153 536,574 542,241 Total governmental activities 10,593,120$ 10,612,107$ 11,242,603$ 11,235,153$ 10,437,704$
Business-type activities: Interest on investments 400,115$ 95,157$ 63,562$ 42,216$ 56,203$
Miscellaneous 483,157 427,190 263,345 292,738 358,764 Transfers (396,667) (537,959) (559,153) (536,574) (542,241)
Total business-type activities 486,605$ (15,612)$ (232,246)$ (201,620)$ (127,274)$
Total primary government 11,079,725$ 10,596,495$ 11,010,357$ 11,033,533$ 10,310,430$
Change in Net Position
Governmental activities 4,483,312$ 4,383,150$ 3,336,392$ 4,113,455$ 1,806,405$ Business-type activities 4,664,341 2,060,859 1,783,979 1,513,250 1,718,626
Total primary government 9,147,653$ 6,444,009$ 5,120,371$ 5,626,705$ 3,525,031$
(continued)
(accrual basis of accounting)
Year Ending December 31
City of North Augusta, South CarolinaChanges in Net PositionLast Ten Fiscal Years
88
2013 2014 2015 2016 2017Expenses
Governmental activities:
General government 3,893,288$ 4,181,576$ 4,573,665$ 4,519,094$ 7,474,923$ Public safety 6,615,699 7,232,466 7,517,589 8,473,548 8,736,202
Public works 2,609,477 2,348,897 2,051,542 580,327 2,695,126 Recreation and parks 4,212,673 4,501,259 4,723,035 5,061,480 4,913,582
Debt service - interest and fees 313,866 163,147 168,583 155,047 338,132
Loss on debt defeasance 277,682 - - - - Total governmental activities expenses 17,922,685$ 18,427,345$ 19,034,414$ 18,789,496$ 24,157,965$
Business-type activities:
Water and sewer 7,491,321$ 7,420,051$ 8,081,456$ 7,745,232$ 8,359,555$
Sanitation 3,376,614 3,958,515 4,316,548 4,594,016 4,536,142 Stormwater utility 826,121 507,555 494,179 541,495 638,634
Savannah Bluff Lock and Dam utility 24,000 24,000 24,000 24,000 24,000 Total business-type activities expenses 11,718,056$ 11,910,121$ 12,916,183$ 12,904,743$ 13,558,331$
Total primary government expenses 29,640,741$ 30,337,466$ 31,950,597$ 31,694,239$ 37,716,296$
Program Revenues
Governmental activities:
Charges for services: General government 4,892,172$ 5,272,149$ 5,621,613$ 5,885,657$ 6,229,497$
Public safety 1,055,155 1,109,022 1,195,544 1,060,102 1,041,202 Public Works 60,381 62,664 65,907 78,018 158,147
Recreation and parks 1,058,841 1,090,469 1,162,485 1,260,024 1,148,108
Operating grants and contributions 811,914 1,433,764 872,652 791,316 1,083,944 Capital grants and contributions 1,357,083 468,934 - - 207,768
Total governmental activities program revenues 9,235,546$ 9,437,002$ 8,918,201$ 9,075,117$ 9,868,666$
Business-type activities:
Charges for services: Water and sewer 8,564,524$ 8,800,125$ 8,664,457$ 9,155,898$ 9,459,054$
Sanitation 3,647,518 4,163,934 4,168,309 4,246,959 4,472,281 Stormwater utility 575,233 584,566 746,814 759,131 770,135
Operating grants and contributions - 264,747 2,449 - 10,161
Capital grants and contributions 220,936 618,036 396,837 124,408 103,591 Total business-type activities program revenues 13,008,211$ 14,431,408$ 13,978,866$ 14,286,396$ 14,815,222$
Total primary government program revenues 22,243,757$ 23,868,410$ 22,897,067$ 23,361,513$ 24,683,888$
Net (expense) / revenue
Governmental activities (8,687,139)$ (8,990,343)$ (10,116,213)$ (9,714,379)$ (14,289,299)$ Business-type activities 1,290,155 2,521,287 1,062,683 1,381,653 1,256,891
Total primary government net expense (7,396,984)$ (6,469,056)$ (9,053,530)$ (8,332,726)$ (13,032,408)$
General Revenues and Other Changes in Net PositionGovernmental activities:
Ad valorem property taxes 6,858,860$ 6,993,684$ 6,874,139$ 7,162,650$ 8,146,680$ Capital projects sales taxes 1,180,511 2,733,613 2,828,301 2,891,291 3,109,712
Local hospitality and accommodations taxes 622,971 661,531 713,903 764,056 790,749
Interest on investments 70,768 69,440 89,791 192,906 423,369 Gain(loss) on disposal of capital assets - - (3,311) - -
Miscellaneous 631,662 696,936 886,062 568,970 3,659,328 Transfers 657,011 378,848 514,893 540,943 205,830
Total governmental activities 10,021,783$ 11,534,052$ 11,903,778$ 12,120,816$ 16,335,668$
Business-type activities:
Interest on investments 48,450$ 50,735$ 69,410$ 120,990$ 145,025$ Gain(loss) on disposal of capital assets - - 46,107 (12,606) 78,747
Miscellaneous 561,746 644,361 584,902 557,130 572,813
Transfers (657,011) (378,848) (514,893) (540,943) (205,830) Total business-type activities (46,815)$ 316,248$ 185,526$ 124,571$ 590,755$
Total primary government 9,974,968$ 11,850,300$ 12,089,304$ 12,245,387$ 16,926,423$
Change in Net Position
Governmental activities 1,334,644$ 2,543,709$ 1,787,565$ 2,406,437$ 2,046,369$ Business-type activities 1,243,340 2,837,535 1,248,209 1,506,224 1,847,646 Total primary government 2,577,984$ 5,381,244$ 3,035,774$ 3,912,661$ 3,894,015$
(accrual basis of accounting)
Year Ending December 31
City of North Augusta, South CarolinaChanges in Net PositionLast Ten Fiscal Years
89
2008 2009 2010 2011 2012
General Fund
Reserved 49,883$ 10,947$ 6,780$ -$ -$
Unreserved 257,821 595,511 522,008 - -
Nonspendable * - - - 1,723 1,220
Restricted *- - - 2,600 3,140
Committed *- - - 695,829 1,143,666
Total General Fund 307,704$ 606,458$ 528,788$ 700,152$ 1,148,026$
All Other Governmental Funds
Reserved 7,187$ 7,187$ -$ -$ -$
Unreserved 14,964,062 12,509,474 15,060,268 - -
Restricted *- - - 8,599,562 6,725,864
Committed *- - - 2,053,852 1,197,249
Assigned *- - - 4,728,272 6,031,460
Total all other governmental funds 14,971,249$ 12,516,661$ 15,060,268$ 15,381,686$ 13,954,573$
2013 2014 2015 2016 2017
General Fund
Nonspendable * 1,630$ 1,774$ -$ -$ -$
Restricted *32,841 60,140 88,746 103,644 107,443
Committed *966,050 1,073,650 796,106 1,484,194 1,121,426
Unassigned *- - 2,375,000 2,475,000 2,625,000
Total General Fund 1,000,521$ 1,135,564$ 3,259,852$ 4,062,838$ 3,853,869$
All Other Governmental Funds
Restricted *7,065,591 6,746,666 5,790,157 7,512,545 23,636,811
Committed *1,534,983 2,114,554 2,184,346 2,950,803 3,731,713
Assigned *4,234,929 2,489,051 1,261,269 428,854 367,043
Unassigned *- (188,988) (69,258) - -
Total all other governmental funds 12,835,503$ 11,161,283$ 9,166,514$ 10,892,202$ 27,735,567$
Year Ending December 31
Year Ending December 31
City of North Augusta, South Carolina
Fund Balances, Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
*GASB 54, Fund Balance Reporting and Governmental Fund Type Definitions, was adopted by the City for Fiscal Year 2011.
90
2008 2009 2010 2011 2012Revenues
Ad valorem taxes 5,498,319$ 5,994,545$ 6,142,064$ 6,294,172$ 6,780,783$
Sales taxes 3,415,808 3,331,626 3,354,214 3,474,959 1,861,677 Local hospitality and accommodations taxes 550,501 548,490 555,230 559,853 584,227 Licenses and permits 4,481,413 4,344,903 4,386,190 4,605,181 4,711,699 Fines and forfeitures 830,404 880,343 1,017,029 1,113,435 1,029,126 Charges for services 998,638 1,083,661 1,176,376 1,123,999 1,083,121 Intergovernmental 2,263,544 2,181,554 1,105,430 2,050,355 1,198,831 Miscellaneous/interest earnings 907,236 453,852 513,604 369,594 675,603 Contributions 57,000 - - 62,497 310,352 304,844 421,586 - 17,563 4,352 Total Revenues 19,307,707$ 19,240,560$ 18,250,137$ 19,671,608$ 18,239,771$
Expenditures
General government 2,881,302$ 2,921,774$ 3,296,614$ 2,964,818$ 2,984,191$ Public safety 4,992,356 5,091,162 5,547,594 6,092,949 6,502,974 Public works 1,116,121 1,078,396 1,182,030 1,117,385 1,176,290 Parks, recreation and tourism 2,922,300 2,818,409 2,947,681 2,966,513 3,154,330 Capital outlay 12,209,020 8,928,503 2,596,756 5,903,648 5,089,261 Debt service: Capital lease payments 906,150 945,126 883,675 974,915 1,024,075 Interest and fiscal charges 433,418 412,307 386,664 361,398 345,547 Intergovernmental 800,000 - - - - Total Expenditures 26,260,667$ 22,195,677$ 16,841,014$ 20,381,626$ 20,276,668$
Excess (deficiency) of revenues over (under) expenditures (6,952,960)$ (2,955,117)$ 1,409,123$ (710,018)$ (2,036,897)$
Other financing sources (uses)Proceeds on sale of capital assets -$ -$ 293,749$ -$ -$ Inception of capital lease obligation 408,499 285,909 217,368 666,226 515,417 Lease issuance cost - - - - - Issuance of bonds - - - - - Transfers in 1,439,423 771,195 1,141,208 913,575 1,135,143 Transfers out (1,078,440) (257,821) (595,511) (377,001) (592,902) Total other financing sources (uses)769,482$ 799,283$ 1,056,814$ 1,202,800$ 1,057,658$
Net change in fund balance (6,183,478)$ (2,155,834)$ 2,465,937$ 492,782$ (979,239)$
Debt service as a percentage of noncapital expenditures 9.53%9.77%8.90%8.72%8.42%
2013 2014 2015 2016 2017RevenuesAd valorem taxes 6,858,860$ 6,993,526$ 6,871,821$ 7,163,429$ 7,446,013$ Sales taxes 1,180,511 2,733,613 2,828,301 2,891,291 3,109,712 Local hospitality and accommodations taxes 622,971 661,531 713,903 764,056 790,749 Licenses and permits 4,892,172 5,272,149 5,621,613 5,885,657 6,229,497 Fines and forfeitures 991,039 1,044,648 1,138,891 996,799 978,626 Charges for services 1,122,957 1,154,843 1,285,045 1,401,345 1,291,321
Intergovernmental 1,141,759 1,187,485 872,652 791,316 4,179,592
Miscellaneous/interest earnings 697,191 747,304 977,123 781,035 1,000,276
Contributions 1,000 368,500 - - -
- - - - - Total Revenues 17,508,460$ 20,163,599$ 20,309,349$ 20,674,928$ 25,025,786$
ExpendituresGeneral government 3,302,811$ 3,704,832$ 4,028,393$ 3,712,733$ 3,406,445$ Public safety 6,058,506 6,630,196 7,833,279 7,990,705 7,921,809 Public works 1,157,668 1,344,015 1,487,619 1,394,286 1,515,323 Parks, recreation and tourism 3,141,942 3,391,470 3,647,665 4,022,934 4,085,589 Capital outlay 1,353,010 6,269,988 13,260,678 1,790,360 45,762,352 Debt service:
Capital lease payments 4,117,682 747,764 897,952 929,907 3,991,122
Interest and fiscal charges 599,101 179,035 164,947 155,047 1,712,670
Principal Retirements - - - - 12,573,657 Bond Issuance Costs - - - - 1,495,554 Total Expenditures 19,730,720$ 22,267,300$ 31,320,533$ 19,995,972$ 82,464,521$
Excess (deficiency) of revenues over (under) expenditures (2,222,260)$ (2,103,701)$ (11,011,184)$ 678,956$ (57,438,735)$
Other financing sources (uses)Proceeds on sale of capital assets -$ 26,191$ -$ -$ -$ Inception of capital lease obligation 309,494 312,249 887,594 880,655 473,983
Issuance of bonds - - 9,738,217 428,120 71,882,320
Insurnace proceeds - - - - 178,260
Transfers in 1,691,350 3,253,841 23,350,453 1,397,258 10,699,613
Transfers out (1,045,159) (2,874,993) (22,835,560) (856,315) (9,161,045) Total other financing sources (uses)955,685$ 717,288$ 11,140,704$ 1,849,718$ 74,073,131$
Net change in fund balance (1,266,575)$ (1,386,413)$ 129,520$ 2,528,674$ 16,634,396$
Debt service as a percentage of noncapital expenditures 24.83%5.77%6.42%7.03%24.36%
(a) 2017 installment purchase revenue bond to construct and equip two parking decks, a stadium, conference facilities, a riverfront park, and certain roads,
water, sewer, and related infrastructure (Series 2017B.) Also included is a $25,000 tax increment revenue bond.
Grant revenue
Year Ending December 31
(modified accrual basis of accounting)
Grant revenue
Year Ending December 31
City of North Augusta, South Carolina
Changes in Fund Balances, Governmental FundsLast Ten Fiscal Years
91
Year Ended
December 31
(a) Tax
Year
Assessed
Value
Estimated Actual
Value
Assessed
Value
Estimated Actual
Value
Assessed
Value
Estimated Actual
Value Tax Rate
2008 (b) 2007 50,581,231$ 1,029,704,480$ 17,825,479$ 136,161,590$ 68,406,710$ 1,165,866,070$ 77.20
2009 2008 55,751,062 1,134,948,515 17,554,767 134,093,840 73,305,829 1,269,042,355 77.20
2010 2009 56,974,481 1,159,853,825 17,939,988 137,036,395 74,914,469 1,296,890,220 77.20
2011 2010 58,409,698 1,188,082,347 18,327,983 140,371,587 76,737,681 1,328,453,934 77.20
2012 (b) 2011 67,451,510 1,371,997,494 18,490,991 141,620,052 85,942,501 1,513,617,546 74.21
2013 2012 68,404,348 1,395,850,974 19,032,345 144,082,251 87,436,693 1,539,933,225 74.21
2014 2013 69,161,813 1,411,307,715 19,735,545 149,405,748 88,897,358 1,560,713,463 74.21
2015 2014 70,710,810 1,442,916,363 20,984,447 158,860,422 91,695,257 1,601,776,785 74.21
2016 2015 73,065,987 1,490,975,824 21,623,421 163,697,707 94,689,408 1,654,673,531 74.21
2017 2016 79,819,959 1,628,796,572 26,336,665 199,378,794 106,156,624 1,828,175,366 70.50
City of North Augusta, South CarolinaAssessed Value and Estimated Actual Value of Taxable PropertyLast Ten Fiscal Years
Source: City of North Augusta tax records
TOTALREAL PROPERTY PERSONAL PROPERTY
(a)The City of North Augusta uses different tax years for real and personal property taxes because on April 30,1980, the S.C. General Assembly passed a lawthat provided for the billing and collection of personal property taxes on motor vehicles on a staggered basis according to expiration of the license tag.
(b)Reassessment year, see Table VI
92
Fiscal Year
Ended
December
31
(a) Tax
Year
Operating
Millage
Debt
Service
Millage (b)
Total City
Millage
Operating
Millage
Debt
Service
Millage
Total
County
Millage
Operating
Millage
Debt
Service
Millage
Total
School
Millage
Total Direct &
Overlapping
Rates
2008 2007 68.69 8.51 77.20 65.00 9.70 74.70 125.80 29.10 154.90 306.80
2009 2008 68.69 8.51 77.20 65.80 8.90 74.70 131.00 29.20 160.20 312.10
2010 2009 68.69 8.51 77.20 67.60 7.10 74.70 137.50 23.50 161.00 312.90
2011 2010 68.69 8.51 77.20 67.90 6.80 74.70 137.50 23.50 161.00 312.90
2012 2011 66.40 7.81 74.21 65.60 4.30 69.90 131.60 31.50 163.10 307.21
2013 2012 66.40 7.81 74.21 66.00 3.90 69.90 135.80 31.50 167.30 311.41
2014 2013 74.21 -74.21 66.00 3.90 69.90 141.60 29.00 170.60 314.71
2015 2014 74.21 -74.21 66.00 3.90 69.90 141.60 29.00 170.60 314.71
2016 2015 74.21 -74.21 66.00 3.90 69.90 141.60 29.00 170.60 314.71
2017 2016 70.50 -70.50 64.60 3.90 68.50 137.30 28.70 166.00 305.00
Source: Aiken County Auditor
(b) The City had no GOB debt prior to 2006. During 2013, the City defeased all of its outstanding GOB debt
City Tax Data: Mill:Represents .1% per $1,000 of assessed valuation
Tax Rate Limits:None Taxes Due: Personal: In the month preceding tag renewal by the S.C. State Highway Department
Real and Merchants: April 30thPersonal: N/A--Taxes on personal property paid in advance
Taxes Delinquent:Real and Merchants: May 1st
Discount Allowed: None Penalties: Real and Merchants: 15%
Reassessment Years:Tax Years 2007, 2011, 2016
Uncollected taxes are turned over to the City Delinquent Tax Collector on June 1st, with authority to enforce collection by tax sale.
City of North Augusta, South CarolinaDirect and Overlapping Property Tax Rates
Last Ten Fiscal Years
City of North Augusta
Overlapping Property Tax Rates
County of Aiken Aiken County School District
(a) Because of the change mandated by State law noted in the footnote of Table V, the City of North Augusta uses different tax years for real andpersonal property taxes.
93
2017 2008
Taxpayer Type of Business
Assessed
Valuation Rank
Percentage of Total Assessed
Valuation
Assessed
Valuation Rank
Percentage of Total Assessed
Valuation
S. C. Electric & Gas Co.Utility 3,232,640$ 1 3.05%1,927,950$ 2 2.82%
Allnex Industries, Inc. (a)Manufacturing 2,879,320 2 2.71%2,246,820 1 3.28%
Wal-Mart, Inc.Retail Shopping 2,156,900 3 2.03%911,490 4 1.33%
SRP Federal Credit Union Banking/Credit Union 1,265,570 4 1.19%
SUSO 3 Augusta, LP Real Estate 1,111,260 5 1.05%
Halocarbon Chemicals, Inc. Manufacturing 1,072,580 6 1.01%845,340 5 1.24%
CVS SC Distribution, Inc.Warehousing/Distribution 755,930 7 0.71%730,730 6 1.07%
The Kroger Company Grocery Store 650,890 8 0.61%
Lowes Home Centers, Inc.Retail Building Supplies 574,350 9 0.54%492,430 8 0.72%
Trailer Train-Hamburg Industries Manufacturing 557,480 10 0.53%
Bell South Telecommunications Communication 1,053,150 3 1.54%
North Augusta Plaza SC, LLC Real Estate 619,120 7 0.91%
North Augusta Business Technology Real Estate 349,260 9 0.51%
Martintown Plaza Real Estate 334,030 10 0.48%
TOTAL Taxable Assessed
Value-10 Largest Taxpayers 14,256,920$ 13.43%9,510,320$ 13.90%
(a) Allnex formerly Cytec formerly Surface Specialties
City of North Augusta, South CarolinaPrincipal Property Taxpayers
Current Year and Nine Years Ago
Source: City of North Augusta tax records
This table lists the ten largest taxpayers, type of business, assessed valuation, and tax levy for the fiscal year 2017 (tax year 2016) as indicated by the
City of North Augusta tax digest. This includes furniture, fixtures, and equipment assessed at 10.5% and commercial real estate at 6%.
94
Year Ended
December 31
(b) Tax
Year
(a) Taxes Levied
for the Fiscal Year Amount
Percentage of
Levy
Collections in
Subsequent
Years Amount
Percentage of
Levy
2008 (c) 2007 5,280,998$ 5,245,248$ 99.32%21,018$ 5,266,266$ 99.72%
2009 2008 5,659,210 5,630,867 99.50%21,263 5,652,130 99.87%
2010 2009 5,783,397 5,741,980 99.28%32,948 5,774,928 99.85%
2011 2010 5,924,149 5,883,727 99.32% 23,471 5,907,198 99.71%
2012 (c) 2011 6,377,793 6,344,561 99.48% 11,465 6,356,026 99.66%
2013 2012 6,488,677 6,446,489 99.35%19,637 6,466,126 99.65%
2014 2013 6,597,073 6,565,216 99.52%10,338 6,575,554 99.67%
2015 2014 6,804,705 6,762,260 99.38%16,911 6,779,171 99.62%
2016 2015 7,026,901 6,992,988 99.52%5,216 6,998,204 99.59%
2017 (c) 2016 7,484,042 7,446,013 99.49%7,446,013 99.49%
(a) Includes real, merchants inventory, merchants furniture and fixtures, and personal property taxes levied and collected.
(b) Because of the change by State law noted in the footnote of Table V, the City of North Augusta uses different tax years for
real and personal property taxes.
(c) Reassessment year, see Table VI
City of North Augusta, South Carolina
Property Tax Levies and CollectionsLast Ten Fiscal Years
Total Collections to Date
Collected within the
Current Year of Tax Levy
Source: City of North Augusta tax records
95
Year Ended
December 31 Total Revenues Gross Sales
Total Number of
Licenses Issued
2008 4,317,231$ 970,346,276$ 1,822
2009 4,233,899 869,487,157 1,746
2010 4,244,590 808,670,711 1,803
2011 4,464,424 846,714,451 1,756
2012 4,582,285 873,882,462 1,750
2013 4,738,535 963,027,255 1,760
2014 5,032,737 1,047,778,440 1,861
2015 5,302,353 1,098,056,589 1,849
2016 5,514,782 1,143,626,048 1,877
2017 5,727,383 1,253,829,811 2,017
Source: City of North Augusta business license records
City of North Augusta, South Carolina
Business Licenses / Franchise Fees
Last Ten Fiscal Years
96
Year Ended
December 31
Residential
Inside Water
Non-Residential
Inside Water
Total Inside
Water Accounts
Residential
Outside Water
Non-Residential
Outside Water
Total Outside
Water Accounts
Total Water
Accounts
2008 7,569 669 8,238 3,039 146 3,185 11,423
2009 7,670 582 8,252 3,023 151 3,174 11,426
2010 7,821 581 8,402 3,024 145 3,169 11,571
2011 7,881 577 8,458 2,982 148 3,130 11,588
2012 7,897 582 8,479 2,974 150 3,124 11,603
2013 7,906 590 8,496 2,973 147 3,120 11,616
2014 7,971 608 8,579 2,965 148 3,113 11,692
2015 8,074 636 8,710 2,941 153 3,094 11,804
2016 8,152 658 8,810 2,931 158 3,089 11,899
2017 8,310 785 9,095 2,959 158 3,117 12,212
Year Ended
December 31
Residential
Inside Sewer
Non-Residential
Inside Sewer
Total Inside
Sewer Accounts
Residential
Outside Sewer
Non-Residential
Outside Sewer
Total Outside
Sewer Accounts
Total Sewer
Accounts
2008 8,804 622 9,426 918 29 947 10,373
2009 9,003 541 9,544 919 28 947 10,491
2010 9,215 541 9,756 914 26 940 10,696
2011 9,324 536 9,860 902 27 929 10,789
2012 9,355 529 9,884 964 27 991 10,875
2013 9,414 535 9,949 975 29 1,004 10,953
2014 9,521 549 10,070 963 31 994 11,064
2015 9,725 562 10,287 967 31 998 11,285
2016 9,900 576 10,476 967 31 998 11,474
2017 10,114 646 10,760 979 32 1,011 11,771
Source: City of North Augusta utility billing records
City of North Augusta, South Carolina
Number of Utility CustomersLast Ten Fiscal Years
97
Water Customers
Customer Name Type of Business Rank Water Usage Rank Water Usage
Halocarbon Chemicals, Inc.Manufacturing 1 56,537,200 3 45,669,800
City of North Augusta Municipal Government 2 53,654,600 2 56,163,000
Allnex Industries, Inc.Manufacturing 3 36,799,000 4 27,079,700 (a)
Aiken County Schools School District 4 12,210,600 6 9,282,800
JARS at Breckenridge/Plaza Terrace Apartments 5 9,503,900 5 14,159,800 (b)
Gentry's Mobile Home Park Mobile Home Park 6 7,995,400 9 6,664,300
The Housing Authority Apartments 7 7,279,900
Pinecrest Apartments Apartments 8 5,214,200
Mitchell Manor Mobile Home Park Apartments 9 4,817,300
Plaza Place Apartments, LLC Apartments 10 4,451,800 8 6,765,000
Breezy Hill Water & Sewer Authority Water District Provider 1 256,711,600
UniHealth Post Acute Care Nursing Home Facility 7 6,777,200 (c)
The Groves Apartments, LLC Apartments 10 6,246,400
Wastewater Customers
Customer Name Type of Business Rank Water Usage Rank Water Usage
Edgefield County Water & Sewer Authority Sewer District Provider 1 684,700,000 1 507,176,000
Halocarbon Chemicals, Inc.Manufacturing 2 56,537,200 2 45,669,800
Allnex Industries, Inc.Manufacturing 3 36,706,447 3 15,107,700 (a)
City of North Augusta Municipal Government 4 31,791,988 4 10,755,300
Aiken County Schools School District 5 10,813,991 7 7,380,300
The Housing Authority Apartments 6 8,383,894
Willow Wick Apartments Apartments 7 8,028,803
National Healthcare Nursing Home Facility 8 7,783,200 10 5,204,000
Gentry's Mobile Home Park Mobile Home Park 9 7,562,100
Pinecrest Apartments Apartments 10 6,325,806
JARS at Breckenridge/Plaza Terrace Apartments 5 10,268,900 (b)
Plaza Place Apartments, LLC Apartments 9 6,287,000
UniHealth Post Acute Care Nursing Home Facility 6 8,922,000 (c)
The Groves Apartments, LLC Apartments 8 6,652,200
Note: Consumption is measured in gallons
(a) Allnex formerly Cytec formerly Surface Specialties
(b) Breckenridge Apartments and Plaza Terrace Apartments merged under JARS at Breckenridge/Plaza Terrace
(c) UniHealth Post Acute Care formerly Anna-Maria Medical Care
City of North Augusta, South CarolinaTen Largest Water and Wastewater Customers
Current Year and Nine Years Ago
Source: City of North Augusta utility billing records
2017 Annual Consumption 2008 Annual Consumption
2017 Annual Consumption 2008 Annual Consumption
98
Year Ended
December 31
General
Obligation
Bonds Revenue Bonds
Municipal
Center Lease
Capital
Leases
Revenue
Bonds
Capital
Leases
PSA Capacity
Payable
Total Primary
Government
Population
(Estimate) Per Capita
2008 4,491,068$ -$ 6,073,647$ 796,742$ 5,174,433$ 506,460$ -$ 17,042,350$ 19,866 857.87$
2009 4,239,853 - 5,787,235 673,937 4,738,669 693,750 - 16,133,444 20,025 805.67
2010 3,964,448 - 5,490,399 579,468 4,278,251 783,249 - 15,095,815 21,348 (a)707.13
2011 3,684,043 - 5,182,756 858,422 1,609,835 1,178,361 - 12,513,417 21,419 584.22
2012 3,393,638 - 4,863,913 958,605 1,371,083 1,298,976 1,106,033 12,992,248 21,703 598.64
2013 - - 4,553,466 870,864 1,121,081 1,042,038 - 7,587,449 21,885 346.70
2014 - - 4,189,823 778,992 6,301,457 1,025,696 - 12,295,968 22,048 557.69
2015 - 9,738,317 3,834,882 1,123,575 16,118,138 1,245,633 - 32,060,545 22,568 1,420.62 (b)
2016 - 10,166,337 3,466,970 1,431,394 20,299,376 785,635 - 36,149,712 22,932 1,576.39
2017 - 69,475,000 - 1,306,394 20,982,862 777,781 - 92,542,037 23,275 3,976.03 (c)
(b) 2015 installment purchase revenue bond to construct and equip a parking garage, 2014A and 2015A SC Drinking Water Revolving Loan Fund serial bonds to construct a raw water storage facility and new water treatment plant.
NOTE: The ratio of outstanding debt by type is expressed in per capita dollar amounts. Personal income figures are not available at the City level.
(a) Actual Census population from United States Census Bureau
Source: Population estimates provided by the City of North Augusta Planning and Development Department
(c) 2017 installment purchase revenue bond to construct and equip two parking decks, a stadium, conference facilities, a riverfront park, and certain roads, water, sewer, and related infrastructure (Series 2017B.) Also included is a $25,000 tax increment revenue bond.
City of North Augusta, South Carolina
Ratio of Outstanding Debt by TypeLast Ten Fiscal Years
Governmental Activities Business-Type Activities
99
Year Ended
December 31
General Obligation
Bonds (GOB)
Estimated Actual
Taxable Value (1)
of Property
% of Estimated
Actual Taxable
Value of Property Population (2)Per Capita
2008 4,491,068$ 1,165,866,070$ 0.39%19,866 226.07
2009 4,239,853 1,269,042,355 0.33%20,025 211.73
2010 3,964,448 1,296,890,220 0.31%21,348 185.71
2011 3,684,043 1,328,453,934 0.28%21,419 172.00
2012 3,393,638 1,513,617,546 0.22%21,703 156.37
2013 - 1,539,933,225 0.00%21,885 0.00
2014 - 1,560,713,463 0.00%22,048 0.00
2015 - 1,601,776,785 0.00%22,568 0.00
2016 - 1,654,673,531 0.00%22,932 0.00
2017 - 1,828,175,366 0.00%23,275 0.00
(1) City of North Augusta tax records
(2) The population for year 2010 is provided by the US Census Bureau. Population estimates for all other years are
Last Ten Fiscal Years
City of North Augusta, South Carolina
Ratios of General Bonded Debt Outstanding
provided by the City of North Augusta Planning and Development Department. New data not availabe for 2017 at this time.
Note: The City had no General Obligation Bond (GOB) debt prior to 2006. During 2006 the City issued its first GOB debt.
The 2006 General Obligation Bonds were defeased in December of 2013 removing the City's financial obligation.
100
Jurisdiction
Debt Outstanding @
December 31, 2017
Percent Applicable to City of
North Augusta
Amount Applicable to City of
North AugustaDirect Debt
City of North Augusta *70,781,394$ 100.00%70,781,394$
Overlapping Debt
County of Aiken 44,075,847$ 14.95%6,589,339$
Aiken County School District 117,555,000 14.95%17,574,473
Sub-total - Overlapping Debt 161,630,847$ 14.95%24,163,812$
Total 232,412,241$ 94,945,206$
City of North Augusta, South Carolina
Direct and Overlapping Governmental Activities Debt
As of December 31, 2017
assessed value to Aiken County's total taxable assessed value.
Source: Aiken County and Aiken County School District
* Includes Revenue Bonds and Capital Leases
Note: The percentage of the overlapping debt applicable to the City of North Augusta is estimated using taxable assessed
property values. Applicable percentages were estimated by determining the percentage of the City's total taxable
101
2008 2009 2010 2011 2012
Debt Limit 5,472,536$ 5,864,466$ 5,993,158$ 6,139,015$ 6,875,400$
Total net debt applicable to limit 4,491,068 *4,239,853 *3,964,448 3,684,043 *3,393,638 *
Legal debt margin 981,468$ 1,624,613$ 2,028,710$ 2,454,972$ 3,481,762$
Total net debt applicable to the limit
as a percentage of debt limit 82.07%72.30%66.15%60.01%49.36%
2013 2014 2015 2016 2017
Debt Limit 6,994,935$ 7,111,789$ 7,335,620$ 7,575,153$ 8,492,530$
Total net debt applicable to limit - - - - -
Legal debt margin 6,994,935$ 7,111,789$ 7,335,620$ 7,575,153$ 8,492,530$
Total net debt applicable to the limit
as a percentage of debt limit 0.00%0.00%0.00%0.00%0.00%
Note: The 2006 General Obligation Bonds were defeased in December of 2013 removing the City's financial obligation.
Last Ten Fiscal Years
Legal Debt Margin Information
City of North Augusta, South Carolina
Fiscal Year
Fiscal Year
* General Obligation Bonds issued in 2006
102
Year Ended
December 31
Total
Operating
Revenue
Total Operating
Expenses
Net Revenue
Available for Debt
Service
Revenue Bond
Principal
Revenue Bond
Interest
Total Debt
Service
Coverage
Ratio
2008 7,940,478$ 5,403,826$ 2,536,652$ 517,443$ 127,524$ 644,967$ 3.93
2009 7,983,471 5,623,673 2,359,798 526,519 115,282 641,801 3.68
2010 8,401,138 5,801,623 2,599,515 534,781 102,697 637,478 4.08
2011 8,736,969 5,742,471 2,994,498 268,305 38,028 306,333 9.78
2012 8,695,259 5,977,123 2,718,136 274,217 32,117 306,334 8.87
2013 9,018,317 6,434,884 2,583,433 280,270 26,064 306,334 8.43
2014 9,236,276 6,371,096 2,865,180 966,747 73,229 1,039,976 2.76
2015 9,120,970 6,800,179 2,320,791 1,100,524 197,891 1,298,415 1.79
2016 9,624,938 6,698,524 2,926,414 1,386,619 250,838 1,637,457 1.79
2017 9,966,389 7,173,112 2,793,277 1,203,043 252,869 1,455,912 1.92
NOTE:Revenue bondcoverage requirements are defined in the City's Revenue Bond Ordinance bythe City's Bond Counsel,PopeFlynn LLC,Attorneys
andCounselors at Law,locatedinColumbia,South Carolina.Coverage iscalculated by dividing the annualnetrevenue available fordebt service bythe
average annualrequirements for principal andinterest on all debtoutstanding and payable from revenues of the system.Annualnetrevenue available
fordebt service is defined as thetotaloperating revenues(non-operatingrevenue or interestrevenue is not included)less totaloperating expenses
(depreciation or amortization is not included).
Average Annual Remaining Debt Service
City of North Augusta, South Carolina
Pledged-Revenue Bond Coverage
Last Ten Fiscal Years
103
Year Population
Personal Income
(thousands of dollars)
Per Capita Personal
Income Unemployment Rate
2007 152,333 4,760,916 31,253 9.9%
2008 154,601 5,079,467 32,855 7.9%
2009 156,017 5,329,058 34,157 8.6%
2010 160,099 5,504,829 34,325 8.3%
2011 160,682 5,646,463 35,141 8.5%
2012 162,812 5,696,104 34,986 7.7%
2013 164,176 5,944,862 36,210 6.7%
2014 164,753 6,139,496 37,265 6.0%
2015 165,829 6,200,209 37,389 5.9%
2016 168,179 6,535,813 39,030 4.8%
Source: South Carolina Employment Security Commission
Development Department.
Year
1940 2,629 49,916
1950 3,659 53,137
1960 10,348 81,038
1970 12,883 91,023
1980 13,593 105,625
1990 15,684 120,940200017,574 142,780201021,348 160,099201121,419 160,682
2012 21,703 162,812
2013 21,885 164,176
2014 22,048 164,753
2015 22,568 165,829
2016 22,932 168,179
Note 1 - All figures are for the County of Aiken, City of North Augusta statistics are not available
Note 2 - Personal Income and Per Capita Personal Income figures are not available for 2017.
The United States Census Bureau has recorded the population of the City of North Augusta and County of Aiken in the decennial
City of North Augusta County of Aiken
County of Aiken, South Carolina (Note 1)
Economic Statistics
Last Ten Calendar Years (Note 2)
years 1940 through 2010 as follows. Population estimates for years 2011-2016 are provided by the City's Planning and
104
% of Total % of Total
County County
Employer Location Service or Product Employees Rank Employment Employees Rank Employment
Savannah River Site - see detail below (1)Out Materials for Nuclear Defense 11,091 1 15.62%10,477 1 14.86%
Aiken County Public Schools In / Out School District 3,180 2 4.48%3,303 2 4.68%
Bridgestone Americas Tire Operations LLC Out Passenger and Light Truck Tires 1,884 3 2.65%964 5 1.37%
Kimberly-Clark Corp.Out Consumer Paper Products 1,200 4 1.69%1,300 3 1.84%
Aiken Regional Medical Center Out Hospital 1,070 5 1.51%976 4 1.38%
Aiken County Government Out County Government 975 6 1.37%910 6 1.29%
Centerra (a)Out Engineering Consulting Firm 665 7 0.94%
Advanced Glassfiber Yarn Out Fiberglass Insulation and Circuit Boards 660 8 0.93%747 7 1.06%
University of South Carolina-Aiken Out Higher Education 606 9 0.85%
Shaw Industries Out Fibers Manufacturing 600 10 0.84%536 10 0.76%
UPS Customhouse Brokerage Out International Customhouse Brokerage 590 11 0.83%579 9 0.82%Walmart-North Augusta In Retail 585 12 0.82%
City of Aiken Out Municipal Government 404 13 0.57%413 13 0.59%
ASCO Valve, Inc.Out Solenoid Valve Technology 400 14 0.56%481 11 0.68%
Bridgestone Americas Off Road Radial Tires Out Large and Ultra Large Tires 385 15 0.54%
Tri Development Center of Aiken Out Non-Profit Service Agency 370 16 0.52%
CVS Distribution Center Out
Supply Chain Management/Distribution
Center for CVS Pharmacy locations 350 17 0.49%
Hubbell Power Systems Out High Voltage Insulators and Arrestors 328 18 0.46%415 12 0.59%
Medac In
Services and Products to Anesthesia Related
Healthcare Providers 325 19 0.46%
TTX/Hamburg Industries, Inc.In Re-built Railway Cars 252 20 0.35%333 15 0.47%
City of North Augusta In Municipal Government 243 0.34%210 20 0.30%
The Calstar Group (b)Out Speciality Tires and Wheels 230 0.32%277 18 0.39%
Glaxo Smith Kline Out Proprietary Drugs 200 0.28%400 14 0.57%
Newman Technology SC, Inc Out Automotive/ATV Exhaust and Suspension 110 0.15%320 16 0.45%
BAE Systems Out Machine Parts - Track Vehicles 104 0.15%285 17 0.40%
R.E. Phelon, Inc.Out Aluminum Die Casting 235 19 0.33%Westinghouse Safety Management Solutions Out Engineering Consulting Firm 580 8 0.82%
Location: In city limits, Out of city limits
* not in business at this time
** information not available
(1) SRNS/SRR, including subcontractors 7,771
and temporary construction workers
Shaw Areva Mox Services 2,166
Parsons 506
Department of Energy 345
US Forestry Service 112
Savannah River Ecology Lab 71
Other Subcontractors 120
11,091
with less than 6% scattered in other areas.
County
# of
workers %
Aiken County, South Carolina 4,472 57.5%
Columbia County, Georgia 1,308 16.8%
Richmond County, Georgia 822 10.6%
Barnwell County, South Carolina 452 5.8%
Edgefield County, South Carolina 213 2.7%
Orangeburg County, South Carolina 93 1.2%
Bamberg County, South Carolina 88 1.1%
Lexington County, South Carolina 111 1.4%
Allendale County, South Carolina 38 0.5%
Other 174 2.2%
7,771 100.00%
(a) Formerly Wackenhut(b) Formerly Carlisle Tire and Wheel Company
City of North Augusta, South CarolinaPrincipal EmployersCurrent Year and Nine Years Ago
Savannah River Nuclear Solutions/Savannah River Remediation Company employees live in 7 counties in South Carolina and 2 in Georgia
Source: Economic Development Partnership, Various Employers, and South Carolina Employment Commission
2017 2008
105
Fund / Function / Department 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
General Fund
General Government
City Council 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0
City Administration 2.0 2.0 2.0 2.0 3.0 3.0 3.0 3.0 1.0 1.0
Information Technology 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 1.5 (a)1.5
Justice and Law 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0
Finance 5.0 5.0 5.0 4.5 4.5 4.5 5.5 5.5 4.0 4.0
Human Resources 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 2.0 (b)2.0
Building Standards 4.0 5.0 4.0 3.0 3.5 3.5 3.5 4.5 4.5 4.5
Planning and Development 6.0 5.0 4.0 3.0 2.0 2.0 2.0 2.0 2.0 2.5
Property Maintenance 13.0 13.0 13.0 13.0 13.0 12.0 12.0 13.0 14.0 14.0
Public Safety 69.0 72.0 72.0 76.5 76.5 77.0 79.0 84.0 88.0 90.0
Public Works
Engineering 3.0 2.5 2.5 1.5 1.5 1.5 1.5 1.5 2.5 2.5
Streets & Drains 9.0 9.0 9.0 9.0 9.0 9.0 9.5 10.0 10.0 10.0
Parks, Recreation & Tourism
Recreation 6.0 6.0 5.0 5.0 5.0 5.0 4.0 5.0 5.0 4.0
Parks 4.0 4.0 4.0 4.0 4.0 5.0 5.0 5.0 5.0 5.0
Community Center 3.0 3.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0
Tourism 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 3.0 3.0
RVP Activities 6.0 6.0 6.0 6.0 6.0 6.0 6.0 6.0 6.0 7.0
Sub-total 132.0 134.5 130.5 131.5 132.0 132.5 135.0 143.5 152.5 155.0
Stormwater Fund
Stormwater 5.0 6.0 6.0 6.0 5.5 5.5 5.0 4.5 5.5 5.0
Sub-total 5.0 6.0 6.0 6.0 5.5 5.5 5.0 4.5 5.5 5.0
Riverfront Central Core Dev. Fund
Tourism 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 1.0 (d)
Sub-total 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 1.0
Sanitation Fund
Public Works
Information Technology 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.5 (c)0.5
Sanitation 26.5 26.5 26.0 26.0 25.5 26.0 26.0 26.0 25.5 26.5
Material Recovery Center 7.5 7.5 7.5 7.5 7.5 7.5 8.5 8.5 8.5 8.5
Sub-total 34.0 34.0 33.5 33.5 33.0 33.5 34.5 34.5 34.5 35.5
Water & Wastewater Fund
Public Utilities
Information Technology 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 2.0 (a)2.0
Utilities Finance 4.0 4.0 4.0 4.0 5.0 5.0 5.0 5.0 4.0 5.0
Utilities Administration 8.0 7.5 8.0 7.5 7.5 7.5 7.5 7.5 7.5 7.5
Water Operations 9.0 9.0 9.0 8.0 8.0 8.0 8.0 8.0 8.0 8.0
Water Production 8.0 8.0 8.0 8.0 8.0 8.0 8.0 8.0 8.0 8.0
Wastewater Operations 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0
Sub-total 39.0 38.5 39.0 37.5 38.5 38.5 38.5 38.5 39.5 40.5
TOTAL 210.0 213.0 209.0 208.5 209.0 210.0 213.0 221.0 232.0 237.0
(a) previously included under Finance
(b) previously included under Administration
(c) previously included under Sanitation
(d) previously under Parks, Recreation, and Tourism
Source: City of North Augusta Annual Budgets
Fiscal Year
City of North Augusta, South CarolinaFull-time Budget Equivalent Employees by Fund / Function / Department
Last Ten Fiscal Years
106
Function / Program 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
General Government
Size of City (square miles)20.670 20.676 20.723 20.769 20.778 20.989 21.019 21.150 21.172 21.177
Annexations approved by City Council 5 3 4 4 7 5 5 - 2 1
Building permits issued 799 684 815 627 604 622 660 648 668 689
Plumbing permits issued 496 283 349 341 291 340 310 373 381 296
Mechanical permits issued 432 333 467 323 345 391 433 417 520 455
Electrical permits issued 622 335 443 411 349 422 431 434 482 813
Business licenses issued 1,822 1,746 1,803 1,756 1,750 1,760 1,861 1,849 1,877 2,017
Police
Total calls for service 47,189 46,956 50,349 50,356 42,632 41,058 38,973 40,567 37,929 37,322
Criminal arrests 1,833 2,405 2,024 1,800 1,841 1,377 1,360 1,766 1,572 1,338
Incident reports (police action required)3,238 3,051 3,277 3,228 3,557 3,377 3,399 3,627 3,888 3,966
Accident reports (collisions)1,069 1,105 1,068 1,041 1,007 960 1,012 1,190 1,187 1,267
Traffic offenses (resulting in fine)5,858 5,224 6,590 8,652 8,698 8,780 8,785 8,809 7,933 8,261
Drug offenses 202 145 260 231 136 203 157 177 210 372
Burglaries reported 298 385 408 333 218 117 108 97 132 93
Fire
Actual fire calls - Inside City 133 276 192 150 105 130 145 114 105 83
Actual fire calls - Outside City 34 25 13 23 21 17 12 7 31 32
Solid Waste
Garbage Refuse Collected (tons) - Residential 9,544 10,606 10,618 10,402 9,011 9,079 9,143 10,227 9,334 9,554
Garbage Refuse Collected (tons) - Commercial 6,740 6,494 6,049 6,625 6,874 4,992 5,037 4,723 5,502 6,082
Recyclables Collected (tons)2,119 2,804 3,055 5,617 4,839 5,326 5,313 6,656 5,047 5,437
Property Maintenance
Tree trimming hours 227 185 198 260 287 254 275 1,378 3,516 1,338
Mowing hours 13,198 12,200 12,800 13,250 12,970 12,960 12,976 10,944 12,892 14,036
Planting hours 5,412 5,400 5,500 5,600 5,760 5,565 4,628 1,726 1,388 1,145
Streets and Drains
Pothole patching / asphalt tons 280 236 191 254 388 476 409 341 464 142
Curb, gutter & sidewalk repair / CY 192 152 199 324 290 285 378 472 292 400
Storm drain inlets cleaned 275 221 224 307 330 325 282 419 619 848
Street sweeping / miles 2,827 2,139 2,168 2,670 2,393 2,727 977 1,339 822 574
Parks and Recreation
Baseball / Number of Players 782 747 786 784 788 735 789 779 687 592
Youth Softball / Number of Players 289 292 261 270 262 248 259 238 234 240
Spring Soccer / Number of Players 436 566 513 527 540 528 511 484 532 585
Fall Soccer / Number of Players 494 522 504 511 534 474 473 552 552 493
Youth Basketball / Number of Players 576 554 581 595 600 549 680 640 615 652
Youth Football / Number of Players 328 358 346 313 309 310 281 280 239 219
Youth Cheerleading / Number of Participants 128 128 153 165 115 118 96 113 117 182
Youth Volleyball / Number of Participants 76 86 89 91 61 105 83 94 73 86
Water
New water services 57 52 103 101 43 33 77 77 184 130
Water lines installed / L.F.7,626 13,221 3,766 4,662 2,857 5,609 2,068 2,599 913 780
Water line leaks repaired 14 15 17 12 24 29 34 23 27 16
Average daily water pumped 4,226,000 3,771,000 4,246,000 4,330,000 4,365,000 3,853,000 3,569,000 3,576,000 3,750,000 3,380,000
Daily peak demand (gallons per day)7,830,000 7,722,000 7,593,000 7,888,000 9,312,000 7,571,000 7,446,000 7,000,000 6,365,000 5,479,000
Peak day 6/9/2008 7/3/2009 7/9/2010 8/5/2011 7/8/2012 5/27/2013 8/22/2014 6/22/2015 7/29/2016 7/23/2017
Wastewater
New sewer taps 94 83 140 122 97 117 135 158 212 154
Wastewater lines installed / L.F.1,922 2,901 0 1,425 160 1,379 508 1,970 1,259 6,208
Wastewater lines repaired / L.F.37 38 54 64 65 33 62 680 556 252
Wastewater lines cleaned / L.F.77,402 39,468 67,029 57,810 87,648 73,232 93,859 70,610 57,320 34,516
Source: City of North Augusta's Year-end Departmental Reports
Fiscal Year
City of North Augusta, South Carolina
Operating Indicators by Function / ProgramLast Ten Fiscal Years
107
Function / Program 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Public Safety
Number of Stations 2 2 2 2 2 2 2 3 3 3
Number of Public Safety Officers 52 52 55 55 55 55 58 61 62 64
Number of Volunteer Firemen 20 20 20 20 20 20 20 20 20 25
Insurance Rating (ISO)Class 3 Class 3 Class 3 Class 3 Class 3 Class 3 Class 3 Class 2 Class 2 Class 2
Signalized Intersections 24 26 26 30 30 30 30 31 31 32
Number of Fire Hydrants
Inside City 778 781 792 795 802 805 809 812 814 816
Outside City 149 149 149 149 149 149 149 149 149 149
Public Works
Miles of Streets 135.88 137.05 137.77 138.81 140.09 140.85 141.37 141.91 143.77 144.2
Street Lights 1,718 1,740 1,750 1,763 1,789 1,789 1,800 1,817 1,841 1,859
Parks, Recreation & Tourism
Number of Parks 22 22 22 22 22 22 22 22 22 22
Park Acreage 550 550 550 550 550 550 550 550 550 550
Miles of Paved Greeneway 12.5 12.5 14.0 14.0 14.0 14.0 14.0 14.0 14.0 14.0
Number of Picnic Shelters 8 8 8 8 8 8 9 9 9 9
Baseball / Softball Diamonds 9 9 9 10 10 10 10 10 10 10
Football / Lions Field 1 2 2 2 2 2 2 2 2 2
Soccer Fields 6 6 6 6 6 6 6 6 6 6
Tennis Courts 9 9 9 11 11 11 11 11 11 11
Multi-purpose Fields 3 3 3 3 3 3 3 3 3 3
Community Center 1 1 1 1 1 1 1 1 1 1
Activities Center 1 1 1 1 1 1 1 1 1 1
Water
Miles of Water Mains 189.85 194.00 194.78 195.15 195.27 196.01 196.08 228.68 229.07 229.84
Maximum Pumping Capacity 14,000,000 14,000,000 14,000,000 14,000,000 14,000,000 14,000,000 12,000,000 (a)12,000,000 12,000,000 12,000,000
(gallons per day)
Sewer
Miles of Wastewater Lines 226.09 226.63 227.46 227.72 228.03 228.54 228.57 229.20 229.57 230.74
Stormwater
Miles of Storm Sewer 56.80 57.28 57.77 58.22 59.29 59.79 60.37 60.73 68.01 68.47
(a) In 2014, SCDHEC reduced the City's maximum pumping capacity to 12,000,000 GPD
Source: City of North Augusta's Year-end Departmental Reports
City of North Augusta, South CarolinaCapital Asset Statistics by Function / ProgramLast Ten Fiscal Years
Fiscal Year
108
Meter Size Minimum Usage Debt Service O & M Total Debt Service O & M Total5/8 and 3/4 Inch 3,000 gallons $3.90 $8.48 $12.38 $5.85 $18.91 $24.761 Inch 6,000 gallons 3.90 13.44 17.34 5.85 28.83 34.68
1 1/2 Inch 9,000 gallons 3.90 18.08 21.98 5.85 38.11 43.96
2 Inch 15,000 gallons 3.90 27.47 31.37 5.85 56.89 62.74
3 Inch 24,000 gallons 3.90 41.69 45.59 5.85 85.33 91.18
4 Inch 30,000 gallons 3.90 51.17 55.07 5.85 104.29 110.14
6 Inch 90,000 gallons 3.90 146.03 149.93 5.85 294.01 299.86
Volume of Consumption Debt Service O & M Total Debt Service O & M Total
Next 10,000 gallons $0.15 $1.10 $1.25 $0.30 $2.20 $2.50
Next 27,000 gallons 0.15 1.05 1.20 0.30 2.10 2.40
Next 160,000 gallons 0.15 1.00 1.15 0.30 2.00 2.30
All Additional Usage 0.15 0.90 1.05 0.30 1.80 2.10
Debt Service O & M Total Debt Service O & M Total
$2.53 $8.19 $10.72 $5.06 $9.19 $14.25
Volume of Consumption Debt Service O & M Total Debt Service O & M Total
$0.62 $2.28 $2.90 $1.24 $2.32 $3.56
All Additional Usage 0.59 1.81 2.40 0.59 1.81 2.40
Inside City Outside City
$19.50 $27.45
Base Fee
Commercial (monthly)In and Out City Inside City Outside City
2 cubic yard container $51.64 $2.35 $3.53
3 cubic yard container 54.05 2.35 3.53
4 cubic yard container 56.44 2.35 3.53
6 cubic yard container 61.73 2.35 3.53
8 cubic yard container 67.54 2.35 3.53
Residential Charge (Inside City only)$5.00 per monthMulti-family Charge (Inside City only)$3.75 per month per unitNon-residential (Inside City only)Each non-residential developed property is classified and charged according to its primary developed use
Sanitation Service Charges in effect December 31, 2017
Residential (monthly)
Volume Charge (per cubic yard)
Stormwater Management Service Charges in effect December 31, 2017
City of North Augusta, South Carolina
Enterprise Funds Rates and Charges
Rates / Charges in effect December 31, 2017
Base Rates
Base Rates / Outside City Limits
Volume Rates / Inside City Limits Volume Rates / Outside City Limits
Base Rates / Outside City Limits
Sewer Rate in effect December 31, 2017
Rates for first 15,000,000 gallons/month
Volume Rates / Inside City Limits
Base Rates / Inside City Limits
Base Rates / Inside City Limits
Water Rate in effect December 31, 2017
Volume Rates / Outside City Limits
109
1/1/2013
1/1/2009
1/1/2007
1/1/2004
1/1/2017
7/1/2010
7/1/2009
1/1/2009
7/1/2008
7/1/2006
7/1/2005
1/1/2017 Recycling Service Charge of $3.60 included in Residental and Commercial Service Charges
Commercial Volume Charge increased $0.19 inside city limits and $0.29 outside city limits
1/1/2012
1/1/2009
1/1/2007
1/1/2006
1/1/2015
O & M Volume Rate increased by $.02 per 1,000 gallons inside city limits and $.04 per 1,000 gallons outside city limits
O & M Volume Rate increased by $.05 per 1,000 gallons inside and outside city limits (PSA)
Commercial Rates increased by 3.5%
Recycling Service Charge increased by $.60 inside and outside city limits
History of Sewer Rate Changes (past 10 years)
O & M Volume Rate increased by $.10 per 1,000 gallons inside and outside city limits (PSA)
Recycling Service Charge increased by $.75 inside and outside city limits
Residential Service Charge increased by $1.70 inside city limits and $2.55 outside city limits
O & M Minimum Base Rate increased by $1.00 per month outside city limits
O & M Minimum Base Rate increased by $38 per month inside city limits and $.76 per month outside city limits
O & M Volume Rate increased by $.06 per 1,000 gallons inside and $.10 per 1,000 gallons outside city limits
O & M Volume Rate increased by $.10 per 1,000 gallons inside and outside city limits (PSA)
O & M Minimum Base Rate increased by $.75 per month inside city limits and $1.50 per month outside city limits
O & M Minimum Base Rate increased by $1.30 per month inside city limits and $2.60 per month outside city limits
O & M Minimum Base Rate increased by $.50 per month inside and outside city limits
O & M Volume Rate increased by $.10 per 1,000 gallons inside and outside city limits
O & M Volume Rate increased by $.16 per 1,000 gallons inside and outside city limits (PSA)
Residential Service Charge increased by $.60 inside city limits and $.90 outside city limits
City of North Augusta, South Carolina
Enterprise Funds History of Rates and Charges Last Ten Fiscal Years Through December 31, 2017
O & M Volume Rate increased by $.05 per 1,000 gallons inside city limits and $.10 per 1,000 gallons outside city limits
O & M Minimum Base Rate increased by $1.75 per month inside city limits and $3.50 per month outside city limits
O & M Volume Rate increased by $.10 per 1,000 gallons inside city limits and $.20 per 1,000 gallons outside city limits
History of Water Rate Changes (past 10 years)
Stormwater Management Service Charge Changes (past 10 years)
Residential Charge (Inside City only)increased by $1.00 per month per unit
O & M Volume Rate increased by $.16 per 1,000 gallons inside and outside city limits (PSA)
Commercial Rates increased by 2%
Commercial Rates increased by 12%
History of Sanitation and Recycling Charge Changes (past 10 years)
Multi-family Charge (Inside City only)increased by $.75 per month per unit
Residential Service Charge increased by $.30 inside city limits and $.45 outside city limits
110