12.31.2018 Comprehensive Annual Financial Report
CITY OF NORTH AUGUSTA
SOUTH CAROLINA
COMPREHENSIVE ANNUAL
FINANCIAL REPORT
YEAR ENDED
DECEMBER 31, 2018
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 10
Management’s Discussion and Analysis 12
Basic Financial Statements
Government-wide Financial Statements
Statement of Net Position 21
Statement of Activities 22
Fund Financial Statements
Balance Sheet – Governmental Funds 23
Reconciliation of the Balance Sheet of Governmental Funds to the
Statement of Net Position 24
Statement of Revenues, Expenditures and Changes in Fund Balances -
Governmental Funds 25
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund
Balances of Governmental Funds to the Statement of Activities 26
General Fund - Statement of Revenues, Expenditures and Changes in Fund
Balance – Budget and Actual 27
Proprietary Funds – Statement of Net Position 28
Proprietary Funds – Statement of Revenues, Expenses and Changes in Net Position 29
Proprietary Funds – Statement of Cash Flows 30
Notes to Financial Statements 31
Required Supplementary Information
Schedule of proportionate share of the net pension liability 57
Schedule of contributions to pensions 58
Other Supplementary Information
General Fund – Schedule of Revenues and Expenditures Compared with Budget 59
Combining and Individual Nonmajor Fund Financial Statements
Nonmajor Governmental Funds – Combining Balance Sheet 69
Nonmajor Capital Projects Funds – Combining Balance Sheet 70
Nonmajor Special Revenue Funds – Combining Balance Sheet 71
Nonmajor Governmental Funds – Combining Statements of Revenues, Expenditures
and Changes in Fund Balance 72
Nonmajor Capital Projects Funds – Combining Statements of Revenues, Expenditures
and Changes in Fund Balance 73
Nonmajor Special Revenue Funds – Combining Statements of Revenues,
Expenditures and Changes in Fund Balance
74
Enterprise Fund – Water and Wastewater System:
Schedule of Revenues and Expenses – Budgeted and Actual 75
Schedule of Operating Expenses – Budgeted and Actual 76
Enterprise Fund – Sanitation Services:
Schedule of Revenues and Expenses – Budgeted and Actual 79
Schedule of Operating Expenses – Budgeted and Actual 80
Enterprise Fund – Stormwater Utility Fund:
Schedule of Revenues and Expenses – Budgeted and Actual 82
Schedule of Operating Expenses – Budgeted and Actual 83
Schedule required by State Law
Schedule of Fines, Assessments, and Surcharges
84
COMPLIANCE SECTION
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
85
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 taxpayers 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
Ratios of general bonded debt outstanding 12 99
Ratio of outstanding debt by type 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
June 14, 2019 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, 2018.
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, 2018, 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, 2018, 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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Carolina bank of the Savannah River. The City is approximately 70 miles west of the South Carolina
capital, Columbia, and 150 miles east of the Georgia capital, Atlanta. The City’s nearest neighbor is
Augusta, Georgia, located just across the Savannah River. North Augusta offers the best of both worlds
- an idyllic, small-town lifestyle amid all the benefits of big city living. The City encompasses approximately 21 square miles. The 2010 population of the City is estimated to be 21,348 with a total of
approximately 160,099 in Aiken County.
The City of North Augusta has a Mayor-Council form of government. City Council is composed of seven
members elected at large on a partisan basis. The Mayor is elected to a four year term. Six Council members are elected every two years to serve four year staggered terms. City Council is the legally
constituted law-making and policy-making body for the City. The Mayor, with Council approval, appoints
the City Administrator for an indefinite term. The City Administrator is the chief executive of the City.
Department Directors are appointed by the Mayor upon recommendation of the City Administrator.
The City provides a full range of municipal services which include: Finance and Information Services
(budgetary and general accounting, information technology, treasury services, human resources and
payroll, cash collections, purchasing, utility billing, tax billing and business license billing); Parks,
Recreation and Tourism (recreation programs, park maintenance, beautification and property
maintenance, concessions, special events planning, athletics, and cultural arts); Public Safety (administrative and support services, police services, fire suppression services, investigations and special
operations, school resource, safety management, and animal control); Planning and Development
(comprehensive planning services, development regulations, development review, zoning administration,
codes enforcement, subdivision services, and business development); Public Works (engineering services,
sanitation and recycling services, equipment maintenance, stormwater management, building standards, facilities management); and Public Utilities (utilities administration, water production, utility operations,
utility construction, wastewater collection and meter reading). The City also is financially accountable
for a legally separate public facilities corporation which has been reported within the City’s financial
statements. Additional information on this legally separate entity can be found in the notes to the financial
statements.
The City is well-known for its outstanding recreational facilities. The Greeneway is an award-winning,
paved, multi-purpose trail created out of an abandoned railroad right of way. The trail meanders for
approximately ten miles through natural terrain, neighborhoods and, more recently, along the Savannah
riverfront. Once completed, North Augusta’s Greeneway will extend almost sixteen miles. Riverview Park, located on the south side of the City, is a 149-acre recreational wonderland with athletic fields, tennis
courts, a disc-golf course, playgrounds, and trails. The park is anchored by a 120,000 square foot, state-
of-the-art indoor facility known as Riverview Park Activities Center. Riverview Park Activities Center
houses six gymnasiums, two racquetball courts, a suspended indoor track, fitness rooms and
administrative offices for the Department of Parks, Recreation and Tourism.
Public Service Enterprises: The City furnishes water, wastewater, stormwater management and
garbage collection to residents of the City. The City also provides water, wastewater, garbage collection
and fire protection to some customers located outside the City limits but within the City’s service area.
The City has also entered into agreements with the Valley Public Service Authority and the Edgefield County Water and Sewer Authority to provide water and/or wastewater service to certain customers within their service areas.
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Water Supply and Distribution: Because of the varying terrain in and around North Augusta, the
distribution system is divided into three service levels to control pressure. Our current maximum pumping
capacity is 12 MGD (million gallons per day). Construction of a new water treatment module with two treatment trains on the present site of the existing newer plant site was majorly completed late 2018. This project includes a new chemical building, feed systems for the treatment process, a maintenance building
and improvements to the existing SCADA system.
Wastewater System: The City of North Augusta provides for the collection of wastewater to all areas within the City limits and some areas outside the City limits. Wastewater treatment for the City is
provided by the Horse Creek Wastewater Treatment Facility (HCWTF) owned by Aiken County. The
City is a major customer. The HCWTF is a 20 MGD regional wastewater treatment facility. The City’s
present allocation of capacity is 8.672 MGD. The HCWTF maintains adequate reserve and expansion
capacity. The City of North Augusta pays for the use, maintenance and depreciation of the regional facility based on the total cost of the facility’s operational and debt retirement divided among all users on the basis
of total gallons contributed. The table below indicates the City has ample reserve capacity at the present
time.
Aiken County Public Service Authority 20.0 MGD Facility Capacities by User
As of June 30, 2018
Present Allocation (MGD) Present Use (MGD)
City of North Augusta 8.672 4.34873 City of Aiken 7.134 4.41057 Aiken County 1.260 0.00000
Cytec Industries, Inc. .900 0.05926
Bath .070 0.03218
Breezy Hill 1.177 0.51733 Beech Island Water & Sewer .060 0.00793 Clearwater .050 0.04392
Langley .060 0.03856
VPSA .417 0.43858
PACTIV .050 0.00637 Kimberly Clark .150 0.04440 Uncommitted .000 0.00000
Total 20.000 9.94783
Aiken County, to include the Aiken County Public Service Authority, the Valley Public Service Authority,
and the Edgefield County Water and Sewer Authority, are independent entities and are not included in
this report. Financial statements can be obtained from the respective entities.
The annual budget serves as the foundation for the City of North Augusta’s financial planning and control. All Department Directors of the City are required to submit requests for appropriation to the City
Administrator the first week of September each year. The City Administrator uses these requests as the
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starting point for developing a proposed budget. The City Administrator then presents this proposed,
balanced budget to City Council for review the first week of October. Following review of the proposed
budget, City Council holds a public hearing and as soon thereafter as possible, adopts the budget and
passes a budget ordinance, a tax levy ordinance and other such ordinances as may be required to make the budget effective. The appropriated budget is adopted by total expenditures or expenses. Detail is provided
for accounting and budgetary control. 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 GAAP.
Budgets for Special Revenue Funds and Capital Projects Funds are adopted on a project or activity basis
instead of an annual operating cycle basis. Budgets for the Enterprise Funds are adopted annually on a basis consistent with GAAP except that depreciation is not a budgeted item. The transfer of budgeted
amounts between functional areas must be approved by 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 City Administrator approval, at the line item and
department level, as long as the total expenditures or expenses do not exceed appropriations of the functional area.
Local Economy
The City of North Augusta currently enjoys a fairly stable economic environment. In spite of the national recession beginning in 2008, the overall economy of the greater North Augusta area is strong and getting
stronger. The City is fortunate that the economic downturn has affected the Central Savannah River Area
and North Augusta to a lesser degree than most major metropolitan areas in the country. The 2010
Decennial Census showed that North Augusta had grown to a population of 21,348 from 17,574 in 2000,
an increase of more than 21.5 percent and an average annual increase of approximately 2 percent. The City’s Planning and Development Department estimates the City population to be 23,444 for 2018.
During the past ten years, Aiken County’s unemployment rate has fluctuated from 9.9 percent in 2007,
decreasing to 7.7 percent during 2012, and further decreasing to 3.3 percent for 2018. The current rate is
less than South Carolina’s 2018 unemployment rate of 3.4 percent and the 2018 national rate of 3.9 percent. The decreases in unemployment rates during the current year reflect that our local economy
continues to reflect pre-recession unemployment rates.
Median household incomes within the City of North Augusta are slightly higher than for the state as a
whole. According to the United States Census Bureau (USCB), the City’s median family income is $51,863, Aiken County’s is $47,713, and the state’s is $48,781. Housing prices in the City continue to
remain strong. Per the USCB, the median price of a single family home in the City is $150,600.
Over the past ten plus years, the City has experienced a period of significant economic growth and
investment. Residential building activity in North Augusta continues with subdivision infrastructure and single-family construction in The Village at Bergen Place, Bergen West, Wando Woodlands, Woodstone,
Gregory Landing and Hammond’s Ferry.
The City made substantial progress in 2018 in its efforts to redevelop vacant property on the Savannah
River. A public/private partnership is being jointly developed on approximately 30 acres within Phase B of the Hammond’s Ferry Development known as Riverside Village. The Augusta Greenjackets completed
their first season in the 4,500 seat SRP Park and the hotel/conference center accepted their first guests. In
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addition, 280 apartments have been completed as Riverside Village begins to take shape. To date, the
City has constructed the stadium, two parking decks, the public infrastructure and contributed funds
toward the conference center. A riverfront park is all that remains of the public investment. Cost of the
public improvements is approximately $75,000,000. The funding mechanism for the public projects includes tax increment financing, local hospitality and accommodations taxes, parking revenues, corporate
naming rights and stadium rental payments.
Long-term financial planning and major initiatives
Historically in the spring, City Council and Staff have met in planning sessions known as North Augusta
Forward. This planning session has since been renamed to Envision. The major focus of these sessions is
to identify the best possible future for North Augusta and to chart a course to make that future a reality.
The success of these planning sessions can be easily measured by the many changes that have taken place
in the City over the past few years. Future projects requiring significant financial planning and resources have been identified as follows: public safety headquarters and apparatus, transportation improvements to
include improvements to intersections and reconstruction/resurfacing of roads, restoration of our parks
and facilities, expansion of our greeneway, utility infrastructure improvements, gateways and wayfinding
enhancements, improvements to information technology as well as safety and security improvements.
These projects, estimated to cost in excess of $30,000,000, are excellent candidates for future phases of sales tax funding.
The Local Hospitality and Accommodations taxes levied by the City during 1998 have continued as a
positive revenue stream in 2018. During November 2010, Aiken County voters approved the third phase
of a county-wide One-Cent Capital Projects Sales Tax. Current estimates reflect that the third phase sales tax will generate approximately $16,800,000 for the City over seven years which began in 2013. These
funds have been earmarked for a variety of projects that include: street reconstruction and repaving,
sidewalk construction, drainage improvements, public safety additions, park improvements and additions.
Relevant Financial Policies The City’s financial policies allow the General Fund unassigned fund balance, in excess of the required
General Fund reserve of 15 percent of the current budget, to be transferred to the Capital Projects Fund at
the end of each fiscal year. These funds are used for one-time capital expenditures, reducing the need to
incur additional debt for capital related purchases and facilities. The amount to be transferred from the General Fund to the Capital Projects Fund as of 12/31/2018 is $825,129.
Awards and Acknowledgements The Government Finance Officers Association of the United States and Canada (GFOA) awarded a
Certificate of Achievement for Excellence in Financial Reporting to the City of North Augusta for its
comprehensive annual financial report (CAFR) for the fiscal year ended December 31, 2017. This was
the thirty-sixth consecutive year that the government has achieved this prestigious award. In order to be awarded a Certificate of Achievement, the government had to publish an easily readable and efficiently
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organized CAFR that satisfied both generally accepted accounting principles and applicable program
requirements.
A Certificate of Achievement for Excellence in Financial Reporting is valid for a period of one year only. However, we believe that our current CAFR continues to meet the Certificate of Achievement for
Excellence in Financial Reporting Program’s requirements, and we are submitting it to the GFOA to
determine its eligibility for another certificate.
The preparation of this report would not have been possible without the skill, effort, and dedication of the entire staff of the Finance and Administration Departments. We wish to thank all City employees who
assisted and contributed the data necessary to prepare this report. Credit is also due to the Mayor and
Council for their unfailing support in maintaining the highest standards of professionalism in the
management of the City of North Augusta’s finances.
Respectfully submitted, Respectfully submitted,
B.Todd Glover Cammie T. Hayes City Administrator Director of Finance
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North
Augusta vy
South Carolina 's Riverfront
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CITY OF NORTH AUGUSTA ORGANIZATION CHART – 2018
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
Lillian E. Hodges, Director of Planning & Development
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FINANCIAL
SECTION
North `
Au g usta \
ticn tl Carolina'sliners FiiucrjrO u
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, 2018, 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, 2018, 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 June 14, 2019, 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
June 14, 2019
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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, 2018. 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 $132,632,993 (net position). Of this amount, ($6,138,639), 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 $2,376,893.
• At the close of the current fiscal year, the City’s governmental funds reported combined fund balances of $17,418,755, a decrease of $14,170,681 in comparison with the prior year. The
decrease represents construction and completion of City projects in Riverside Village. Approximately 16.22 percent of the governmental funds combined fund balance, $2,825,000, 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 $3,762,499 or 21.13 percent of total general fund expenditures.
• The City’s total outstanding long-term debt decreased by $1,182,772 due to making scheduled
debt 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.
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.
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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 twelve individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and
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 eight 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.
13
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 $132,632,993 at the close of the most recent fiscal year.
City of North Augusta's Net Position
2018 2017 2018 2017 2018 2017
Current and other assets 21,200,221$ 37,714,745$ 19,963,415$ 20,381,858$ 41,163,636$ 58,096,603$
Capital assets 132,221,073 116,897,141 79,319,989 77,687,822 211,541,062 194,584,963
Total Assets 153,421,294 154,611,886 99,283,404 98,069,680 252,704,698 252,681,566
Deferred outflows of resources 2,230,078 2,648,598 934,528 1,210,235 3,164,606 3,858,833
Long-term liabilities outstanding 87,589,157 87,445,349 29,721,492 31,044,177 117,310,649 118,489,526
Other liabilities outstanding 3,147,800 5,582,610 2,665,484 2,182,253 5,813,284 7,764,863
Total Liabilities 90,736,957 93,027,959 32,386,976 33,226,430 123,123,933 126,254,389
Deferred inflow of resources 53,942 14,357 58,436 15,553 112,378 29,910
Net position:
Net investment in capital assets 65,640,358 46,115,747 58,580,045 55,927,179 124,220,403 102,042,926
Restricted 6,574,221 23,744,254 7,977,008 9,618,737 14,551,229 33,362,991
Unrestricted (7,354,106) (5,641,833) 1,215,467 492,016 (6,138,639) (5,149,817)
Total Net Position 64,860,473$ 64,218,168$ 67,772,520$ 66,037,932$ 132,632,993$ 130,256,100$
Governmental Activities Business-type Activities Total
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By far, the largest portion of the City’s net position (93.66 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 (10.97 percent) represents resources that are subject to
external restrictions on how they may be used. The remaining balance of ($6,138,639) 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 2018, governmental activities increased the City’s net position by $642,305, thereby accounting
for 27.02 percent of the total growth in net position. Governmental activities revenues decreased $893,901 from 2017 to 2018 primarily related to a one-time contribution from Aiken County that was
received for parking in 2017. Charges for services include: business license revenues, franchise fees, construction permits and public safety fines. These revenues represent 36.85 percent of total revenues
for governmental activities and are predominantly elastic in nature and vary with economic trends. Property taxes represent 32.44 percent of total revenues for governmental activities and remained
constant with the prior year.
Also during 2018, governmental activities expenses increased by $473,587. General government expenses increased by $1,380,130, or 18.46 percent primarily due to increases in capital purchases to
include the construction projects at Riverside Village. Expenses for the other functions had minimal changes from the prior year.
15
City of North Augusta's Changes in Net Position
201820172018 2017 2018 2017
Revenues:
Program revenues:
Charges for services 9,251,841$ 8,576,954$ 14,885,573$ 14,701,470$ 24,137,414$ 23,278,424$
Operating grants and contributions 1,377,317 1,083,944 80,636 10,161 1,457,953 1,094,105
Capital grants and contributions - 207,768 23,514 103,591 23,514 311,359
General revenues:
Property taxes 8,143,925 8,146,680 - - 8,143,925 8,146,680
Other taxes 4,897,658 3,900,461 - - 4,897,658 3,900,461
Other 1,433,862 4,082,697 1,121,576 796,585 2,555,438 4,879,282
Total Revenues 25,104,603 25,998,504 16,111,299 15,611,807 41,215,902 41,610,311
Expenses:
General government 8,855,053 7,474,923 - - 8,855,053 7,474,923
Public safety 9,253,259 8,736,202 - - 9,253,259 8,736,202
Public works 2,736,631 2,695,126 - - 2,736,631 2,695,126
Parks, recreation, and tourism 3,785,041 4,913,582 - - 3,785,041 4,913,582
Interest and fiscal charges on debt service 1,568 338,132 - - 1,568 338,132
Water and wastewater - - 8,896,535 8,359,555 8,896,535 8,359,555
Sanitation - - 4,624,936 4,536,142 4,624,936 4,536,142
Stormwater - - 661,987 638,634 661,987 638,634
Savannah Bluff Lock and Dam - - 23,999 24,000 23,999 24,000
Total Expenses 24,631,552 24,157,965 14,207,457 13,558,331 38,839,009 37,716,296
Increase in net position before transfers 473,051 1,840,539 1,903,842 2,053,476 2,376,893 3,894,015
Transfers 169,254 205,830 (169,254) (205,830) - -
Increase in net position 642,305 2,046,369 1,734,588 1,847,646 2,376,893 3,894,015
Net position-beginning of year 64,218,168 62,171,799 66,037,932 64,190,286 130,256,100 126,362,085
Net position-end of year 64,860,473$ 64,218,168$ 67,772,520$ 66,037,932$ 132,632,993$ 130,256,100$
Governmental Activities Business-type Activities Total
Business-type Activities
Business-type activities increased the City’s net position by $1,734,588 accounting for 72.98 percent of the total growth in net position. Water, sanitation and stormwater rates remained unchanged while
Council approved a 0.25/1,000 gallons rate increase to the wastewater rate structure to offset a new debt service payment passed to the City from the Aiken County Public Service Authority. Water sales
decreased slightly for the current year and were under budget by approximately $35,000. Sewer sales increased over $485,000. Fees for sanitation services and recycling increased $108,680 from the prior
year due to additional customers and special charges. Stormwater fees increased slightly due to additional customers.
Expenses for the Water and Wastewater System increased by $536,980 from the prior year primarily due
to increased expenses for interest and fiscal charges. In 2018, the expenses for the Sanitation Services Fund showed an increase from the prior year of $88,794 due to increase personnel costs and auto
16
operating expenses. Increased expenses in the Stormwater Utility Fund were minimal. A total of $23,999 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, 2018, the City’s governmental funds reported combined fund balances of $17,418,755 a
decrease of $14,170,681 from the prior year. Approximately 16.22 percent of this amount constitutes unassigned fund balance, which is available for spending at the City’s discretion. Unassigned fund
balance increased by $200,000 for the year 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 $2,825,000, while total fund balance was $3,873,548.
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 15.87 percent of total General Fund expenditures, while total fund balance represents 21.76 percent of those same expenditures.
17
Fund balance for the City’s other governmental funds totaled $13,545,207 for 2018, a decrease of $14,190,360 primarily related to reduced capital outlay expenditures for Riverside Village as compared to
the prior year. 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, 2018. Property tax revenues exceeded budget by approximately $200,000. Additionally, revenues for licenses
and building permits exceeded budgeted revenues by more than $484,000, reflective of increased local business revenues and an increase in construction within the City to include Riverside Village.
Intergovernmental revenues reflected a positive variance with budgeted revenues primarily related to unbudgeted grant revenue and a fee in lieu payment from Aiken County.
General Government and Public Works expenditures were in line with budgeted expenditures for 2018.
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 expenditures were
under budget due to a delay in projects expected to be completed during 2018.
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, 2018 amounts to $211,541,062 (net of accumulated depreciation). This investment in capital assets includes land, land improvements, rights-of-way and easements, buildings, machinery and equipment, furniture and fixtures, infrastructure, system improvements, PSA capital, and construction
in progress. The total increase in capital assets for the current fiscal year was approximately 8.71
percent. Additional information on the City’s capital assets can be found in Note 4 of this report.
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City of North Augusta's Capital Assets
(net of depreciation)201820172018201720182017
Land 10,051,486$ 10,051,486$ 824,058$ 824,058$ 10,875,544$ 10,875,544$
Land improvements 7,391,079 6,688,718 - - 7,391,079 6,688,718
Right-of-way and easements 3,226,901 3,226,901 62,760 62,760 3,289,661 3,289,661
Buildings 95,340,866 35,614,317 20,860,986 3,113,498 116,201,852 38,727,815
Machinery and equipment 258,910 351,318 905,840 542,045 1,164,750 893,363
Furniture and fixtures 263,860 372,428 - - 263,860 372,428
Vehicles 3,302,013 3,403,958 952,189 1,107,954 4,254,202 4,511,912
Infrastructure 12,117,190 11,489,206 - - 12,117,190 11,489,206
System improvements - - 53,863,704 52,681,807 53,863,704 52,681,807
PSA capital - - 1,848,377 1,965,062 1,848,377 1,965,062
Construction in progress 268,768 45,698,809 2,075 17,390,638 270,843 63,089,447
Total Capital Assets 132,221,073$ 116,897,141$ 79,319,989$ 77,687,822$ 211,541,062$ 194,584,963$
Governmental Activities Business-type Activities Total
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 water plant expansion
• Greeneway tunnel and extension
• Additional gyms at Riverview Park
• Continued design, schematics, engineering services, and architectural services related to Riverside Village as well as construction related to a stadium, and infrastructure for the project
area.
The City has committed over $2,000,000 to construction completion of the stadium and wrap up of the
water treatment project in 2019.
Long-Term Debt. At the end of the current fiscal year, the City had total bonded debt outstanding of $89,352,539. The City’s debt represents bonds secured solely by specified revenue sources.
City of North Augusta's Outstanding Debt
20182017 2018201720182017
Revenue bonds 69,475,000$ 69,475,000$ 19,877,539$ 20,982,862$ 89,352,539$ 90,457,862$
Capital leases 1,174,089 1,306,394 862,406 777,781 2,036,495 2,084,175
Total Outstanding Debt 70,649,089$ 70,781,394$ 20,739,945$ 21,760,643$ 91,389,034$ 92,542,037$
Governmental Activities Buisness-type Activities Total
The City’s total debt outstanding, less compensated absences, decreased by $1,153,003 during the
current fiscal year. This decrease was attributed to making scheduled debt service payments during 2018.
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 decreased to 1.33 in 2018. 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 $2,036,495 in capital leases for
equipment and vehicles and long-term debt related to compensated absences amounting to $989,693 (not presented in the table above).
Additional information regarding the City’s capitalized lease obligations and long-term debt can be found
in Notes 5 and 6 of this report.
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Economic Factors and Next Year’s Budgets and Rates
The following economic factors currently affect the City and were considered in developing the 2019 fiscal year budget:
• The unemployment rate for Aiken County has been decreasing since 2011 and is estimated at 3.3
percent for 2018 reflecting pre-recession unemployment rates.
• The 2018 budget reflects an increase in the millage rate to 73.50. The value of a mill has increased over 48 percent during the past ten years reflective of a recovering economy.
• Increases are expected in health insurance premiums, as well as pension and other employee benefit costs.
Additional information related to the local economy can be found in the transmittal letter of this report.
Request for Information
The financial report is designed to provide a general overview of the City’s finances for all those with an
interest in its finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Director of Finance, City of North Augusta,
P.O. Box 6400, North Augusta, SC 29861-6400.
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BASIC FINANCIAL STATEMENTS
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
STATEMENT OF NET POSITION
DECEMBER 31, 2018
GovernmentalBusiness‐type
ActivitiesActivitiesTotal
ASSETS
Equity in pooled cash 1,693,633$ 3,050,403$ 4,744,036$
Investments 12,335,9395,463,47217,799,411
Receivables:
Taxes, net 130,895 - 130,895
Customers, net - 1,847,1591,847,159
Other 1,795,961 - 1,795,961
Notes - - -
Inventory - 261,137261,137
Restricted cash and investments 5,243,7939,317,75614,561,549
Capital assets, net:
Nondepreciable capital assets 13,547,155 888,89314,436,048
Depreciable capital assets, net 118,673,918 78,431,096197,105,014
Service rights, net - 23,488 23,488
Total Assets 153,421,294 99,283,404 252,704,698
DEFERRED OUTFLOWS OF RESOURCES
Pension experience differences 260,763 16,212276,975
Pension investment return 291,226 142,670433,896
Contributions to pension plan 618,413 305,807924,220
Change in proportionate share 204,758 113,502318,260
Assumption changes 854,918 356,3371,211,255
Total Deferred Outflows of Resources 2,230,078 934,528 3,164,606
LIABILITIES
Accounts payable 2,336,392 481,5992,817,991
Accrued expenses 389,949 69,204459,153
Municipal court liability 52,045 - 52,045
Accrued interest payable 285,317 - 285,317
Payable from restricted resources:
Accounts payable 325 883 1,208
Retainage payable - 769,156769,156
Accrued bond interest - 27,559 27,559
Customer deposits - 543,150543,150
Unearned revenue 83,772456,218539,990
Noncurrent liabilities:
Due within one year 1,020,271 1,807,5092,827,780
Due in more than one year 70,300,796 19,250,15089,550,946
Net pension liability 16,268,090 8,981,54825,249,638
Total Liabilities 90,736,957 32,386,976 123,123,933
DEFERRED INFLOWS OF RESOURCES
Change in proportionate share 5,154 5,583 10,737
Pension experience differences 48,788 52,853 101,641
Total Deferred Inflows of Resources 53,942 58,436 112,378
NET POSITION
Net investment in capital assets 65,640,358 58,580,045 124,220,403
Restricted for:
Bond indentures - 7,111,974 7,111,974
Operations - Savannah Bluff Lock and Dam - 865,034 865,034
Victims assistance 111,049 - 111,049
Public safety - fire division 131,540 - 131,540
Capital projects 5,429,466 - 5,429,466
Special projects 902,166 - 902,166
Unrestricted (7,354,106) 1,215,467 (6,138,639)
Total Net Position 64,860,473$ 67,772,520$ 132,632,993$
The notes to the financial statements are an integral part of this statement.
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CITY OF NORTH AUGUSTA, SOUTH CAROLINA
STATEMENT OF ACTIVITIES
YEAR ENDED DECEMBER 31, 2018
OperatingCapital
Charges forGrants and Grants andGovernmental Business‐type
Functions/ProgramsExpensesServicesContributionsContributionsActivitiesActivitiesTotal
Governmental Activities:
General government 8,855,053$ 6,361,953$ 1,036,081$ -$ (1,457,019)$ -$ (1,457,019)$
Public safety 9,253,259892,13875,017 - (8,286,104) - (8,286,104)
Public works 2,736,631167,961266,219 - (2,302,451) - (2,302,451)
Parks, recreation and tourism 3,785,0411,829,789 - - (1,955,252) - (1,955,252)
Interest and fiscal charges on debt service 1,568 - - - (1,568) - (1,568)
Total Governmental Activities 24,631,552 9,251,841 1,377,317 - (14,002,394) - (14,002,394)
Business-type Activities:
Water and wastewater 8,896,5359,746,927 - 23,514 - 873,906 873,906
Sanitation 4,624,9364,355,68880,636 - - (188,612) (188,612)
Stormwater utility 661,987782,958 - - - 120,971 120,971
Savannah Bluff Lock and Dam 23,999 - - - - (23,999) (23,999)
Total Business-type Activities 14,207,457 14,885,573 80,636 23,514 - 782,266 782,266
Total 38,839,009$ 24,137,414$ 1,457,953$ 23,514$ (14,002,394) 782,266 (13,220,128)
General Revenues:
Ad valorem property taxes 8,143,925 - 8,143,925
Local hospitality and accommodation taxes 1,718,195 - 1,718,195
Capital projects sales taxes 3,179,463 - 3,179,463
Interest on investments 400,007281,451 681,458
Gain on disposal of capital assets 9,441 55,180 64,621
Miscellaneous 1,024,414784,945 1,809,359
Transfers 169,254 (169,254) -
Total General Revenues and Transfers 14,644,699 952,322 15,597,021
Change in net position 642,305 1,734,588 2,376,893
Net position, beginning of year 64,218,168 66,037,932130,256,100
Net position, end of year 64,860,473$ 67,772,520$ 132,632,993$
Net (Expense) Revenue and
Changes in Net PositionProgram Revenues
The notes to the financial statements are an integral part of this statement.
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CITY OF NORTH AUGUSTA, SOUTH CAROLINA
BALANCE SHEET
GOVERNMENTAL FUNDS
DECEMBER 31, 2018
SalesCapital North Augusta NonmajorTotal
GeneralTax IIIProjectsPublic FacilitiesGovernmentalGovernmental
FundFundFundCorporationFundsFunds
ASSETS
Equity in pooled cash 779,359$ -$ 222,409$ -$ 691,865$ 1,693,633$
Investments 3,314,667 1,013,541 1,069,897 5,996,909 940,925 12,335,939
Receivables:
Taxes, net of allowance for doubtful accounts 130,895 - - - - 130,895
Grants 13,239 - 91,015 - 266,219 370,473
Other 294,521 792,280 - 17,279 321,408 1,425,488
Due from other funds 543,208 - - - - 543,208
Restricted cash and investments 111,049 2,216,647 - 884,887 2,031,210 5,243,793
Total Assets 5,186,938$ 4,022,468$ 1,383,321$ 6,899,075$ 4,251,627$ 21,743,429$
LIABILITIES
Accounts payable 744,900$ 14,004$ 50,174$ 1,508,150$ 19,489$ 2,336,717$
Accrued salaries, wages, and employee benefits 389,742 - - - 207 389,949
Municipal court liability 52,045 - - - - 52,045
Due to other funds - - - 420,385122,823 543,208
Unearned revenue - assessment fees - - - - 83,772 83,772
Total Liabilities 1,186,687 14,004 50,174 1,928,535 226,291 3,405,691
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - property taxes 126,703 792,280 - - - 918,983
Total Deferred Inflows of Resources 126,703 792,280 - - - 918,983
FUND BALANCES
Restricted for:
Capital projects - 3,216,184 - - 2,213,282 5,429,466
Victim's assistance111,049 - - - - 111,049
Public Safety - fire division- - - - 131,540 131,540
Special projects- - - 4,970,540 - 4,970,540
Committed for:
Capital projects 825,129 - 1,333,147 - 455,446 2,613,722
Parks, recreation and tourism- - - - 9,697 9,697
Special projects- - - - 870,968 870,968
Housing and development112,370 - - - - 112,370
Assigned for:
Capital projects- - - - 344,403 344,403
Unassigned2,825,000 - - - - 2,825,000
Total Fund Balances 3,873,548 3,216,184 1,333,147 4,970,540 4,025,336 17,418,755
Total Liabilities, Deferred Inflows
of Resources, and Fund Balances 5,186,938$ 4,022,468$ 1,383,321$ 6,899,075$ 4,251,627$ 21,743,429$
The notes to the financial statements are an integral part of this statement.
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CITY OF NORTH AUGUSTA, SOUTH CAROLINA
RECONCILIATION OF THE BALANCE SHEET TO THE STATEMENT OF NET POSITION
DECEMBER 31, 2018
Ending fund balance - governmental funds 17,418,755$
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 174,576,323
Accumulated depreciation (42,355,250)
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 2,230,078
Deferred inflows of resources related to pensions (53,942)
Capital leases (1,174,089)
Bonds payable (69,475,000)
Accrued vacation (671,978)
Accrued interest (285,317)
Net pension liability (16,268,090)
Amounts to be collected are not available to pay for the current period's expenditures
and therefore are deferred in the funds 918,983
Net Position of Governmental Activities 64,860,473$
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.
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CITY OF NORTH AUGUSTA, SOUTH CAROLINA
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
YEAR ENDED DECEMBER 31, 2018
SalesCapitalNorth Augusta NonmajorTotal
General Tax IIIProjectsPublic FacilitiesGovernmentalGovernmental
Fund Fund FundCorporationFundsFunds
Revenues:
Ad valorem property tax7,215,859$ -$ 51,311$ -$ 751,052$ 8,018,222$
Sales taxes- 3,179,463 - - - 3,179,463
Local hospitality and accommodation taxes- - - - 1,718,195 1,718,195
Licenses and permits6,361,953 - - - - 6,361,953
Fines and forfeitures834,200 - - - - 834,200
Charges for services1,375,541 - - 598,475 - 1,974,016
Intergovernmental843,596 - - 406,923 648,561 1,899,080
Interest earnings79,67717,855 22,890 209,768 69,817 400,007
Miscellaneous517,922 - 139,306 - 11,569 668,797
Total Revenues17,228,748 3,197,318 213,507 1,215,166 3,199,194 25,053,933
Expenditures:
Current:
General government4,596,777- 55,174 106,520 889 4,759,360
Public safety8,321,057- 5,401 - 53,186 8,379,644
Public works1,591,856- - - 2,415 1,594,271
Parks, recreation and tourism2,672,956 - - - 370,166 3,043,122
Capital outlay- 1,264,815834,422 15,383,153 1,253,767 18,736,157
Debt service:
Capital lease payments 619,864 - - - - 619,864
Interest and fiscal charges - - - 3,217,755 - 3,217,755
Total Expenditures 17,802,510 1,264,815 894,997 18,707,428 1,680,423 40,350,173
Excess (deficiency) of revenues over expenditures (573,762) 1,932,503 (681,490) (17,492,262) 1,518,771 (15,296,240)
Other Financing Sources (Uses):
Inception of capital lease obligation 432,308 - - - - 432,308
Transfers in 911,586 - 750,453 2,858,442 17,655 4,538,136
Transfers out (750,453) (17,655) (178,260) - (2,898,517) (3,844,885)
Total Other Financing Sources (Uses)593,441 (17,655) 572,193 2,858,442 (2,880,862) 1,125,559
Net change in fund balance 19,679 1,914,848 (109,297) (14,633,820) (1,362,091) (14,170,681)
Fund balance, beginning of year 3,853,8691,301,336 1,442,444 19,604,360 5,387,427 31,589,436
Fund balance, end of year 3,873,548$ 3,216,184$ 1,333,147$ 4,970,540$ 4,025,336$ 17,418,755$
The notes to the financial statements are an integral part of this statement.
25
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, 2018
Net change in fund balances - total governmental funds (14,170,681)$
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 19,241,905
Transfer of capital asset to enterprise funds (523,997)
Depreciation on general government assets (3,386,398)
Proceeds from sale of capital assets (17,019)
Gain on disposal of capital assets 9,441
15,323,932
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.
Compensated absences 24,219
Principal payments on capital leases 564,613
Proceeds from capital lease (432,308)
156,524
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.(1,568)
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.92,535
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 (758,437)
Change in net position of governmental activities 642,305$
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 BALANCE ‐
BUDGET AND ACTUAL ‐ GENERAL FUND
YEAR ENDED DECEMBER 31, 2018
2018
OriginalOver
and Final (Under)
BudgetActualBudget
Revenues:
Ad valorem property taxes7,005,951$ 7,215,859$ 209,908$
Licenses and permits5,877,000 6,361,953 484,953
Fines and forfeitures997,946 834,200 (163,746)
Charges for services1,338,122 1,375,541 37,419
Intergovernmental743,230 843,596 100,366
Interest earnings40,000 79,677 39,677
Miscellaneous610,307 517,922 (92,385)
Total Revenues16,612,556 17,228,748 616,192
Expenditures:
Current:
General government4,538,135 4,596,777 58,642
Public safety7,891,062 8,321,057 429,995
Public works1,524,842 1,591,856 67,014
Parks, recreation and tourism2,767,154 2,672,956 (94,198)
Capital lease payments624,690 619,864 (4,826)
Total Expenditures17,345,883 17,802,510 456,627
Excess (deficiency) of revenues over expenditures(733,327) (573,762) 159,565
Other Financing Sources (Uses):
Proceeds from capital lease obligations- 432,308 432,308
Transfers in733,327 911,586 178,259
Transfers out- (750,453) (750,453)
Total Other Financing Sources (Uses)733,327 593,441 (139,886)
Net change in fund balance-$ 19,679 19,679$
Fund balance, beginning of year 3,853,869
Fund balance, end of year 3,873,548$
The notes to the financial statements are an integral part of this statement.
27
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
DECEMBER 31, 2018
Nonmajor Fund
Water and
Wastewater SanitationStormwaterSavannah BluffTotal
System ServicesUtilityLock and Dam Enterprise Funds
ASSETS
Current Assets:
Equity in pooled cash1,548,264$ 1,269,338$ 232,801$ -$ 3,050,403$
Restricted cash and investments2,390,109- - 865,0343,255,143
Investments2,582,0072,111,082770,383- 5,463,472
Customer accounts receivable1,717,498129,061600- 1,847,159
Inventory261,137 - - - 261,137
Total Current Assets8,499,015 3,509,481 1,003,784 865,034 13,877,314
Non-current Assets:
Restricted cash and investments 6,062,613 - - - 6,062,613
Capital Assets
Non-depreciable 610,607 91,235 187,051 - 888,893
Depreciable, net 72,371,6922,689,5213,369,883 - 78,431,096
Service Rights, net 23,488 - - - 23,488
Total Non-current Assets 79,068,400 2,780,756 3,556,934 - 85,406,090
Total Assets 87,567,415 6,290,237 4,560,718 865,034 99,283,404
DEFERRED OUTFLOWS OF RESOURCES
Pension experience differences 7,961 7,004 1,247 - 16,212
Pension investment return 72,013 59,683 10,974 - 142,670
Contributions to pension plan159,244123,03923,524 - 305,807
Change in proportionate share58,93045,8428,730 - 113,502
Assumption changes181,787147,14027,410 - 356,337
Total Deferred Outflows of Resources 479,935382,70871,885- 934,528
LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND NET POSITION
Current Liabilities:
Accounts payable 341,594 135,019 4,986 - 481,599
Accrued expenses191,873169,19825,848- 386,919
Current portion of capital leases payable95,497257,9368,765- 362,198
Unearned revenue23,515 - - - 23,515
Payable from restricted assets:
Accounts payable883- - - 883
Retainage payable769,156- - - 769,156
Accrued bond interest27,559- - - 27,559
Current portion of revenue bonds payable1,127,596 - - - 1,127,596
Customer deposits543,150- - - 543,150
Total Current Liabilities3,120,823 562,153 39,599 - 3,722,575
Non-current Liabilities:
Capital leases payable 130,888341,653 27,666 - 500,207
Revenue bonds payable 18,749,943 - - - 18,749,943
Net pension liability 4,663,9053,626,754690,889 - 8,981,548
Unearned revenue 432,703 - - - 432,703
Total Non-current Liabilities 23,977,439 3,968,407 718,555 - 28,664,401
Total Liabilities 27,098,262 4,530,560 758,154 - 32,386,976
DEFERRED INFLOWS OF RESOURCES
Change in proportionate share 2,804 2,350 429 - 5,583
Pension experience differences 28,364 20,423 4,066 - 52,853
Total Deferred Inflows of Resources 31,168 22,773 4,495 - 58,436
Net Position:
Net investment in capital assets 52,878,375 2,181,167 3,520,503 - 58,580,045
Restricted for debt service 7,111,974 - - - 7,111,974
Restricted for operations - - - 865,034 865,034
Unrestricted 927,571 (61,555) 349,451 - 1,215,467
Total Net Position 60,917,920$ 2,119,612$ 3,869,954$ 865,034$ 67,772,520$
Major Funds
Business‐type Activities
The notes to the financial statements are an integral part of this statement.
28
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
PROPRIETARY FUNDS
YEAR ENDED DECEMBER 31, 2018
Business‐type Activities
Nonmajor Fund
Water andTotal
Wastewater SanitationStormwaterSavannah BluffEnterprise
System ServicesUtility FundLock and Dam Funds
Operating Revenues:
Charges for services and fees9,746,927$ 4,154,525$ 782,958$ -$ 14,684,410$
Sale of recyclables- 201,163 - - 201,163
Other505,843 261,677 17,425 - 784,945
Total Operating Revenues10,252,770 4,617,365 800,383 - 15,670,518
Operating Expenses:
Finance544,637 - - - 544,637
Administration880,907 - - - 880,907
Operations and Maintenance4,310,424 2,504,066 569,813 23,9997,408,302
Production and Treatment1,478,577 - - - 1,478,577
Material Recovery Facility- 1,483,340 - - 1,483,340
Depreciation and amortization1,234,447 623,319 91,457 - 1,949,223
Total Operating Expenses8,448,992 4,610,725 661,270 23,999 13,744,986
Operating income (loss)1,803,778 6,640 139,113 (23,999) 1,925,532
Nonoperating Revenues (Expenses)
Intergovernmental 13,480 67,156 - - 80,636
Interest earnings204,588 43,012 16,481 17,370 281,451
Interest expense and fiscal charges(447,543) (14,211) (717) - (462,471)
Gain (loss) on disposal of capital assets 10,230 44,950 - - 55,180
Total Nonoperating Revenues (Expenses)(219,245) 140,907 15,764 17,370 (45,204)
Income (loss) before contributions and transfers 1,584,533 147,547 154,877 (6,629) 1,880,328
Capital contributions 178,713 - 368,798 - 547,511
Transfers out (478,767) (214,484) - - (693,251)
Change in net position 1,284,479 (66,937) 523,675 (6,629) 1,734,588
Net position, beginning of year 59,633,441 2,186,549 3,346,279 871,663 66,037,932
Net position, end of year 60,917,920$ 2,119,612$ 3,869,954$ 865,034$ 67,772,520$
Major Funds
The notes to the financial statements are an integral part of this statement.
29
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
YEAR ENDED DECEMBER 31, 2018
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 10,165,285$ 4,627,812$ 799,783$ -$ 15,592,880$
Cash paid for or on behalf of employees (2,773,974) (2,144,021) (603,383) - (5,521,378)
Cash paid for goods and services (3,976,671) (1,688,901) (77,101) (23,999) (5,766,672)
Net cash from operating activities 3,414,640 794,890 119,299 (23,999) 4,304,830
Cash flows from noncapital financing activities:
Transfers out to other funds (478,767) (214,484) - - (693,251)
Net cash from noncapital financing activities (478,767) (214,484) - - (693,251)
Cash flows from capital and related financing activities:
Purchase and construction of capital assets (2,211,720) (536,696) (286,349) - (3,034,765)
Proceeds received from sales of capital assets10,230 48,335 - - 58,565
Principal paid on revenue bonds(1,105,323) - - - (1,105,323)
Proceeds received from capitalized leases 177,454 358,972 45,412 - 581,838
Principal paid on capitalized leases (173,788) (314,445) (8,981) - (497,214)
Proceeds received from intergovernmental activities 13,480 67,156 - - 80,636
Interest expense (447,543) (14,211) (717) - (462,471)
Net cash from capital and related financing activities (3,737,210) (390,889) (250,635) - (4,378,734)
Cash flows from investing activities:
Interest on investments 204,588 43,012 16,481 17,370 281,451
Net cash from investing activities 204,588 43,012 16,481 17,370 281,451
Net change in cash and cash equivalents (596,749) 232,529 (114,855) (6,629) (485,704)
Cash and cash equivalents, beginning of year 13,179,742 3,147,891 1,118,039 871,663 18,317,335
Cash and cash equivalents, end of year 12,582,993$ 3,380,420$ 1,003,184$ 865,034$ 17,831,631$
Reconciliation of operating income (loss) to net
cash from operating activities:
Operating income (loss)1,803,778$ 6,640$ 139,113$ (23,999)$ 1,925,532$
Adjustments to reconcile operating income (loss) to net cash
from operating activities:
Depreciation and amortization 1,234,447 623,319 91,457 - 1,949,223
Bad debt expense 31,000 - - - 31,000
Change in assets and liabilities:
(Increase) decrease in accounts receivable (100,048) 10,447 (600) - (90,201)
Decrease in notes receivable 25,000 - - - 25,000
Increase in inventory (35,559) - - - (35,559)
Increase (decrease) in accounts payable (100,992) 27,010 (138,354) - (212,336)
Increase in retainage payable 382,434 - - - 382,434
Increase in customer deposits 11,078 - - - 11,078
Increase (decrease) in accrued salaries, wages, and
employee benefits 4,010 (3,244) 1,539 - 2,305
Decrease in unearned revenue (23,515) - - - (23,515)
Pension deferred inflows / outflows and liability 183,007 130,718 26,144 - 339,869
Total Adjustments 1,610,862 788,250 (19,814) - 2,379,298
Net cash from operating activities 3,414,640$ 794,890$ 119,299$ (23,999)$ 4,304,830$
Noncash investing, capital and financing activities:- -
Contributed capital assets 178,713$ -$ 368,798$ -$ 547,511$
Total noncash investing, capital and financing 178,713$ -$ 368,798$ -$ 547,511$
Reconciliation of cash and cash equivalents:
Equity in pooled cash 1,548,264$ 1,269,338$ 232,801$ -$ 3,050,403$
Investments 2,582,007 2,111,082 770,383 - 5,463,472
Current restricted assets 2,390,109 - - 865,034 3,255,143
Non-current restricted assets 6,062,613 - - - 6,062,613
Cash and cash equivalents 12,582,993$ 3,380,420$ 1,003,184$ 865,034$ 17,831,631$
Major Funds
The notes to the financial statements are an integral part of this statement.
30
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2018
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.
31
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2018
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.
32
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2018
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.
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 $5,000. Management can also over-expend appropriations, with the City
Administrator’s approval, at the line item and department level, as long as the total expenditures or
expenses do not exceed appropriations of the functional area.
Formal budgetary integration is employed as a management control device. A budget is legally adopted
annually for the General Fund on a basis consistent with generally accepted accounting principles.
Annual budgets are not adopted for the Special Revenue Funds or the Capital Projects Funds.
These funds budget on a project or activity basis instead of an annual operating cycle basis. Budgets
for the enterprise funds are legally adopted annually on a basis consistent with generally accepted
accounting principles except that depreciation is not a budgeted item.
33
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2018
Note 1—Summary of significant accounting policies (continued)
Budgeted amounts are as originally adopted or as amended by the City Council or the City
Administrator. There were no individual amendments to the original appropriations, which were adopted
and consisted of transferring amounts within departmental accounts. No supplemental appropriations
were necessary during the year.
The City employs the use of encumbrance accounting during the year. All encumbrances lapse at the
end of the year.
Unexpended appropriations lapse at the end of the year except that a whole or part of appropriations
provided in the budget for capital or betterment outlays of any department or activity remaining
unexpended at the close of the fiscal year is held available for the following year.
Excess of Expenditures over Appropriations – For the year ended December 31, 2018, expenditures exceeded
budget in the General Fund for the following functions:
BudgetActual
Over (Under)
Budget
General government 4,538,135$ 4,596,777$ 58,642$
Capital lease payments - general government 81,804 78,604 (3,200)
4,619,939$ 4,675,381$ 55,442$
Public safety 7,891,062$ 8,321,057$ 429,995$
Capital lease payments - public safety 468,954 467,981 (973)
8,360,016$ 8,789,038$ 429,022$
Public works 1,524,842$ 1,591,856$ 67,014$
Capital lease payments - public works 61,891 61,238 (653)
1,586,733$ 1,653,094$ 66,361$
The over-expenditures for General Government and Public Works were materially in line with budgeted
expenditures for the year. The over-expenditures for Public Safety were due to increased personnel costs and
the purchase of vehicles and equipment with capital lease proceeds.
34
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2018
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 net realizable value 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.
During the year ended December 31, 2018, the City implemented GASB Statement No. 89, Accounting for
Interest Costs Incurred before the End of a Construction Period, and, therefore, did not record capitalized
interest in the proprietary funds for the year ended December 31, 2018.
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
35
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2018
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.
36
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2018
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: $100,000.
Water and Sewer Fund: 20 percent of the then current water and sewer fund budget to the nearest
twenty-five thousand dollars.
37
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2018
Note 2—Equity in pooled cash and investments, deposits, and investments
As of December 31, 2018, the City’s cash and investments consisted of the following:
MaturitiesFair Value
State Treasurer's Investment Pool Daily 27,463,672$
Demand deposit accounts Daily 8,559,819
Treasury reserves 1,081,505
Total cash and investments 37,104,996$
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;
38
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2018
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, 2018, 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 74
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, 2018, the carrying amount of the City’s deposits was $8,555,819 and the bank balance was
$10,862,904. The entire bank balance was covered by federal depository insurance or by collateral held by the
City’s agent in the City’s name.
39
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2018
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, 2018, 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, 2018 for its $27,463,672 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 $1.00.
40
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2018
Note 4—Capital assets
Capital asset activity for the year ended December 31, 2018 was as follows:
Governmental Activities
Balance Balance
1/1/2018AdditionsDisposals12/31/2018
Capital assets, not being
depreciated:
Land10,051,486$ -$ -$ 10,051,486$
Construction in progress45,698,809 134,908 (45,564,949) 268,768
Right-of-away3,226,901 - - 3,226,901
Total capital assets, not
being depreciated58,977,196 134,908 (45,564,949) 13,547,155
Capital assets, being
depreciated:
Land improvements15,505,164 1,592,011 - 17,097,175
Buildings46,543,336 60,479,089 - 107,022,425
Machinery and equipment2,090,472 71,571 - 2,162,043
Furniture and fixtures1,554,539 - - 1,554,539
Vehicles7,467,924 534,177 (184,031) 7,818,070
Infrastructure23,903,815 1,471,101 - 25,374,916
Total capital assets,
being depreciated97,065,250 64,147,949 (184,031) 161,029,168
Less accumulated
depreciation for:
Land improvements(8,816,446) (889,650) - (9,706,096)
Buildings(10,929,019) (752,540) - (11,681,559)
Machinery and equipment(1,739,154) (163,979) - (1,903,133)
Furniture and fixtures(1,182,111) (108,568) - (1,290,679)
Vehicles(4,063,966) (628,544) 176,453 (4,516,057)
Infrastructure(12,414,609) (843,117) - (13,257,726)
Total accumulated
depreciation(39,145,305) (3,386,398) 176,453 (42,355,250)
Total capital assets
being depreciated, net57,919,945 60,761,551 (7,578) 118,673,918
Governmental activities
capital assets, net 116,897,141$ 60,896,459$ (45,572,527)$ 132,221,073$
41
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2018
Note 4—Capital assets (continued)
Governmental activity depreciation expense was charged to functions as follows:
General government 812,843$
Public safety 794,749
Public works 1,143,849
Recreation and parks 634,957
3,386,398$
Business-Type Activities
Balance Balance
1/1/2018AdditionsDisposals12/31/2018
Capital assets, not being
depreciated:
Land824,058$ -$ -$ 824,058$
Construction in progress17,390,638 2,075 (17,390,638) 2,075
Easements62,760 - - 62,760
Total capital assets, not
being depreciated18,277,456 2,075 (17,390,638) 888,893
Capital assets, being
depreciated:
Buildings6,193,949 17,984,357 - 24,178,306
Machinery and equipment2,683,675 552,873 (176,889) 3,059,659
Vehicles4,451,275 265,800 (165,576) 4,551,499
System improvements69,418,400 2,165,317 - 71,583,717
PSA capital4,667,405 - - 4,667,405
Total capital assets,
being depreciated87,414,704 20,968,347 (342,465) 108,040,586
Less accumulated
depreciation for:
Buildings(3,080,451) (236,869) - (3,317,320)
Machinery and equipment(2,141,630) (185,693) 173,504 (2,153,819)
Vehicles(3,343,321) (421,565) 165,576 (3,599,310)
System improvements(16,736,593) (983,420) - (17,720,013)
PSA capital(2,702,343) (116,685) - (2,819,028)
Total accumulated
depreciation(28,004,338) (1,944,232) 339,080 (29,609,490)
Total capital assets
being depreciated, net59,410,366 19,024,115 (3,385) 78,431,096
Business-type activities
capital assets, net77,687,822$ 19,026,190$ (17,394,023)$ 79,319,989$
42
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2018
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, 2018:
GovernmentalWater and
FundsWastewaterSanitationStormwater
Machinery and equipment 437,624$ 371,038$ 372,195$ 45,412$
Vehicles 2,549,165 320,030 1,143,791 -
2,986,789 691,068 1,515,986 45,412
Accumulated depreciation (1,234,438) (317,030) (666,242) (1,804)
Carry value 1,752,351$ 374,038$ 849,744$ 43,608$
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, 2018:
GovernmentalWater and
Year Ending December 31,FundsWastewaterSanitationStormwater
537,755$ 104,753$ 276,555$ 17,105$
331,803 64,634 170,638 10,554
225,682 43,962 116,063 7,178
124,347 24,222 63,949 3,955
Total minimum lease payments1,219,587 237,571 627,205 38,792
Amount representing interest(45,497) (11,188) (27,615) (2,361)
Present value of minimum
lease payments1,174,090$ 226,383$ 599,590$ 36,431$
2019
2020
2021
2022
Business‐Type Funds
43
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2018
Note 6—Long‐term debt
Changes in Long-Term Debt
Long-term liability activity for the year ended December 31, 2018 was as follows:
Balance BalanceDue Within
1/1/2018AdditionsReductions12/31/2018One Year
Governmental Activities:
Revenue bonds:
North Augusta Public Facility
Corporation revenue bond69,450,000$ -$ -$ 69,450,000$ -$
Tax increment revenue bond25,000 - - 25,000 -
Total revenue bonds69,475,000 - - 69,475,000 -
Capital leases:
Capitalized leases1,306,394 432,308 (564,613) 1,174,089 532,296
Other liabilities:
Compensated absences696,197 483,141 (507,360) 671,978 487,975
Total71,477,591$ 915,449$ (1,071,973)$ 71,321,067$ 1,020,271$
Revenue Bond Payable – Revenue bond payable (recorded as a liability for governmental activities) at
December 31, 2018 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 during 2017.
Total draws for the Series 2017B revenue bond as of December 31, 2018 are $51,359.684. The bond matures
in November 2048. Principal payments are due annually in November beginning in 2020. Interest payments are
made bi-annually based on the all-in true interest cost of the revenue bond transaction. The bond is
collateralized by the constructed assets described above.
44
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2018
Note 6—Long‐term debt (continued)
2017B Revenue Bond Issue
PrincipalInterestTotal
-$ 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
780,000 3,161,029 3,941,029
2024-204866,595,000 53,074,764 119,669,764
69,450,000$ 69,056,216$ 138,506,216$
2023
2019
2020
2021
2022
Long-term liability activity for the year ended December 31, 2018 was as follows:
Balance BalanceDue Within
1/1/2018AdditionsReductions12/31/2018One Year
Business-type Activities:
Revenue bonds payable:
Revenue bonds 20,982,862$ -$ (1,105,323)$ 19,877,539$ 1,127,596$
Capital leases:
Capitalized leases 777,781 581,838 (497,214) 862,405 389,864
Other liabilities:
Compensated absences 323,265 225,797 (231,347) 317,715 317,715
Total 22,083,908$ 807,635$ (1,833,884)$ 21,057,659$ 1,835,175$
Revenue Bonds Payable – Revenue bonds payable (recorded as a liability in the Water and Wastewater
System Fund) at December 31, 2018 are comprised of the following individual issues:
10,862,087$
9,015,452
19,877,539$
$13,000,000WaterandWastewater(Series2015A)serialbonds,originally
datedFebruary17,2015(SCDrinkingWaterRevolvingLoanFundNumberX3-
065-14-0210003-02)duein80quarterlyinstallmentsof$197,561beginning
March1,2017;interestat2.0%.TotaldrawsasofDecember31,2018are
$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
December31,2018are$12,906,882.Therearenoremainingdraws.The
project budget was amended on April 6, 2017 to $12,906,882.
45
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2018
Note 6—Long‐term debt (continued)
2014A Revenue Bond Issue
PrincipalInterestTotal
571,613$ 212,972$ 784,585$
583,131 201,454 784,585
594,881 189,704 784,585
606,868 177,717 784,585
619,097 165,488 784,585
2024-20357,886,497 939,115 8,825,612
10,862,087$ 1,886,450$ 12,748,537$
2015A Revenue Bond Issue
PrincipalInterestTotal
555,983$ 234,263$ 790,246$
567,186 223,060 790,246
578,616 211,630 790,246
590,275 199,971 790,246
602,169 188,077 790,246
2024-20366,121,223 888,198 7,009,421
9,015,452$ 1,945,199$ 10,960,651$
2020
2021
2022
2020
2021
2022
2019
2023
2019
2023
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.
46
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2018
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 2018 totaled $1,574,831. Total net charges for services for the year were
$9,746,927.
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.
47
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2018
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 and other benefits for teachers and
employees of the state and its political subdivisions. SCRS covers employees of state agencies, public school
districts, higher education institutions, other participating local subdivision of government and individual newly
elected to the South Carolina General Assembly at or after the 2012 general election.
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 and other benefits to police officers and
firefighters. PORS also covers peace officers, coroners, probate judges and magistrates.
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.
48
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2018
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/current
annual salary. 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. If the scheduled
employee and employer contributions provided in statute, or the rates last adopted by the board, are insufficient
to maintain the amortization period set in statute, the board shall increase employer contribution rates as
necessary.
After June 30, 2027, 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 eighty-five percent, then the board, effective on 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 eighty-five percent. 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 eighty-five 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 eighty-five percent.
49
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2018
Note 8—Pension plans (continued)
The Retirement System Funding and Administration Act 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 legislation’s 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 twenty year amortization period.
SCRS –The City’s contributions to SCRS for the fiscal year ending December 31, 2018 were approximately
$1,130,000, equal to the required contributions for each year.
PORS –The City’s contributions to PORS for the fiscal year ending December 31, 2018 were approximately
$656,000, 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, 2017. The net pension liability of each defined benefit pension plan
was therefore determined based on the July 1, 2017 actuarial valuations, using membership data as of July 1,
2017, projected forward to the end of the fiscal year, and financial information of the pension trust funds as of
June 30, 2018, 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, 2018, the City reported $17,272,206 and $7,977,432 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, 2018, the City’s proportionate share was 0.077085 percent for SCRS and 0.281536
percent for PORS.
50
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2018
Note 8—Pension plans (continued)
Deferred Outflows/(Inflows) of Resources – For the year ended December 31, 2018, the City recognized
pension expense of $1,782,190 and $1,100,517 for SCRS and PORS, respectively. At December 31, 2018, the
City reported deferred outflows and deferred inflows of resources for each of the respective plans:
Deferred Deferred Deferred Deferred
Outflows of Inflows of Outflows of Inflows of
ResourcesResourcesResourcesResources
Netdifferencebetweenprojectedand
actualearningsonpensionplan
investments274,368$ -$ 159,528$ -$
Netdifferencebetweenexpectedand
actual pension plan experience31,178 101,641 245,797 -
Changesinproportionanddifferences
betweenEmployercontributionsand
proportionate share of contributions218,269 10,737 99,991 -
Assumption changes685,265 - 525,990 -
Employer contributions subsequent to
the measurement date588,091 - 336,129 -
Total1,797,171$ 112,378$ 1,367,435$ -$
SCRS PORS
The deferred outflows of resources of $588,091 and $336,129 for SCRS and PORS, related to pensions
resulting from the City’s contributions subsequent to the measurement date, will be recognized as a reduction of
the net pension liability in the year ended December 31, 2018. The following schedule reflects the amortization
of the net balance of remaining deferred outflows/(inflows) of resources at December 31, 2018. Average
remaining service lives of all employees provided with pensions through the pension plans for the June 30,
2018 measurement period was 4.080 years for SCRS and 4.348 years for PORS.
Measurement period ending June 30, 2018
SCRSPORS
2019 758,936$ 502,966$
2020 566,378 395,296
2021 (203,364) 107,170
2022 (25,248) 25,874
Net balance deferred outflows/(inflow) of resources 1,096,702$ 1,031,306$
Amortization of remaining deferred outflows/(inflows)
51
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2018
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 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 regarding
the net pension liability 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 for the period ending June 30, 2015.
The June 30, 2018, total pension liability (“TPL”), net pension liability (“NPL”), and sensitivity information shown
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, 2017. The total pension liability was rolled-forward
from the valuation date to the plans’ fiscal year end, June 30, 2018, using generally accepted actuarial
principles.
The following table provides a summary of the actuarial assumptions and methods used as of June 30, 2018.
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
The post-retiree mortality assumption is dependent upon the member’s job category and gender. The base
mortality assumptions, 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.
52
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2018
Note 8—Pension plans (continued)
Post-Retiree Mortality Assumptions
Former Job Class Males Females
2016 PRSC Males multiplied by
125%
2016 PRSC Females multiplied by
111%
2016 PRSC Females multiplied by
111%
Educators
General Employees 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%
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 2018 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 adding expected inflation and 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 TPL 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 47%3.38%
Real Assets 10%0.42%
Opportunistic 13%0.48%
Diversified Credit 18%0.65%
Conservative Fixed Income 12%0.10%
Total expected real return 100%5.03%
Inflation for actuarial purposes 2.25%
Total expected nominal return 7.28%
Asset Class
Discount Rate – The discount rate used to measure the TPL 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 Code
of Laws. Based on those assumptions, the System’s fiduciary net position was projected to be available to make
all the 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
TPL.
53
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2018
Note 8—Pension plans (continued)
Sensitivity Analysis - The following table presents the collective NPL of the participating employers calculated
using the discount rate of 7.25 percent, as well as what the employers’ NPL would be if it were calculated using
a discount rate that is 1.00 percent lower (6.25 percent) or 1.00 percent higher (8.25 percent) than the current
rate:
1%Current 1%
DecreaseDiscount RateIncrease
(6.25%)(7.25%)(8.25%)
SCRS 22,070,782$ 17,272,206$ 13,841,832$
PORS 10,754,589 7,977,432 5,702,726
Note 9—Interfund receivables, payables, and transfers
Interfund receivable and payable balances at December 31, 2018 were as follows:
Receivable Fund Amount
General Fund North Augusta Public Facility Corp.420,385$
General Fund Nonmajor governmental fund
543,208$
Payable Fund
122,823
Outstanding balances between the funds is a result of a time lag between the dates that the transfers were
recorded and the payments between funds were made.
The following interfund transfers are reflected in the fund financial statements at December 31, 2018:
Transfer in Amount
General Fund Water and Waterwaste Fund 478,767$
General Fund Sanitation
General Fund Capital Projects Fund
General Fund Nonmajor governmental funds
Capital Projects Fund General Fund
Nonmajor governmental funds Sales Tax III Fund
North Augusta Public Facility Corp.Nonmajor governmental funds
4,538,136$
40,075
750,453
17,655
Transfer Out
214,484
178,260
2,858,442
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.
54
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2018
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, 2018 are composed of the following:
Expended Through
Project December 31,
Authorization2018Commitment
Rivierside Village Stadium 31,487,738$ 29,889,709$ 1,598,029$
Water Plant Upgrade 14,813,081 14,043,925 769,156
46,300,819$ 43,933,634$ 2,367,185$
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.
55
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2018
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—Tax abatements
As of December 31, 2018 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, 2018, the City received $33,168 for tax years 2016 and 2017 as part of
the intergovernmental agreement with Aiken County mentioned above.
Note 14—Subsequent events
The City has evaluated subsequent events through June 14, 2019, the date which the financial statements were
available to be issued. As of this date, there were no material subsequent events requiring adjustment to or
disclosure in the financial statements for the year ended December 31, 2018.
56
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
REQUIRED SUPPLEMENTARY INFORMATION
DECEMBER 31, 2018
Schedule of the City’s Proportionate Share of the Net Pension Liability*
SCRS:
City's
Proportion
of the
Net Pension
Liability
City's
Proportionate
Share of the
Net Pension
Liability
City's
Covered
Payroll
City's Proportionate
Share of the Net
Pension Liability as
a Percentage of its
Covered Payroll
Plan Fiduciary Net
Position as a
Percentage of the
Total Pension
Liability
6/30/2015 0.08%14,301,301$ 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%
6/30/2018 0.08%17,272,206 7,983,849 216.34%54.10%
PORS:
City's
Proportion
of the
Net Pension
Liability
City's
Proportionate
Share of the
Net Pension
Liability
City's
Covered
Payroll
City's Proportionate
Share of the Net
Pension Liability as
a Percentage of its
Covered Payroll
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%
6/30/2018 0.28%7,977,432 3,896,877 204.71%61.70%
*Schedule is intended to show information for 10 years. Additional years will be displayed as they become available.
57
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
REQUIRED SUPPLEMENTARY INFORMATION
DECEMBER 31, 2018
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
Payroll
Contributions as a
Percentage of
Covered
Payroll
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 835,163 (835,163) - 7,371,464 11.33%
12/31/2017 975,309 (975,309) - 7,745,243 12.59%
12/31/20181,128,580 (1,128,580) - 8,024,995 14.06%
Contractually
Required
Contribution
Contributions in
Relation to the
Contractually
Required
Contribution
Contribution
Deficiency
(Excess)
City's
Covered
Payroll
Contributions as a
Percentage of
Covered
Payroll
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) - 3,116,056 12.03%
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 504,306 (504,306) - 3,599,658 14.01%
12/31/2017 575,300 (575,300) - 3,769,186 15.26%
12/31/2018 655,814 (655,814) - 3,918,206 16.74%
58
OTHER SUPPLEMENTARY INFORMATION
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
SCHEDULE OF REVENUES AND EXPENDITURES COMPARED WITH BUDGET
GENERAL FUND
YEAR ENDED DECEMBER 31, 2018
2018
OriginalOver
and Final (Under)
BudgetActualBudget
Revenues:
Taxes:
Current6,940,951$ 7,125,303$ 184,352$
Delinquent10,00015,0395,039
Penalties55,00075,51720,517
Total Taxes7,005,951 7,215,859 209,908
Licenses and Permits:
Business licenses5,550,0006,007,529457,529
Building permits280,000299,44819,448
Electrical permits18,00023,0475,047
Mechanical permits18,00019,7401,740
Plumbing permits11,00012,1891,189
Total Licenses and Permits5,877,000 6,361,953 484,953
Fines and Forfeitures:
Public safety fines977,946808,531(169,415)
Drug related fines20,00025,6695,669
Total Fines and Forfeitures997,946 834,200 (163,746)
Charges for Services:
Fire protection fees62,71262,182(530)
Customer street light fees81,47582,045570
Municipal Center rentals94,100103,0838,983
Recreation fees
Special programs37,50024,209(13,291)
Volleyball5,1706,4371,267
Soccer69,03069,503473
Miscellaneous142,000129,984(12,016)
Basketball48,53045,064(3,466)
Softball31,51028,024(3,486)
Football32,44045,16212,722
Baseball57,67062,9095,239
Concession stand140,000173,27333,273
Community Center fees59,16063,3464,186
Activities Center fees227,325178,249(49,076)
Recreation facilities rentals24,00032,1158,115
Activities Center tournaments225,500269,95644,456
Total Charges for Services1,338,122 1,375,541 37,419
Intergovernmental:
State of South Carolina:
State shared revenue546,230 501,426 (44,804)
Accommodations tax26,000 64,778 38,778
Merchants' inventory tax54,700 54,790 90
Local option sales tax20,000 21,146 1,146
SCDOT traffic signals81,300 85,916 4,616
Law enforcement net grant10,000 5,120 (4,880)
Department of Justice grant5,000 4,719 (281)
Highway safety grant - 12,239 12,239
FEMA grant- 60,294 60,294
Aiken County FILOT- 33,168 33,168
Total Intergovernmental743,230 843,596 100,366
(continued)
59
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
SCHEDULE OF REVENUES AND EXPENDITURES COMPARED WITH BUDGET
GENERAL FUND
YEAR ENDED DECEMBER 31, 2018
2018
OriginalOver
and Final (Under)
BudgetActualBudget
Miscellaneous:
Other 420,307 353,860 (66,447)
Communication tower rental190,000 164,062 (25,938)
Interest earnings40,000 79,677 39,677
Total Miscellaneous650,307 597,599 (52,708)
Total Revenues16,612,556$ 17,228,748$ 616,192$
Expenditures:
General Government:
City Council -
Personal services:
Salaries and wages107,681$ 111,234$ 3,553$
FICA 8,238 7,491 (747)
Employee retirement 12,442 12,622 180
Employee insurance 22,500 22,607 107
Workers' compensation 3,450 2,190 (1,260)
Operating expenditures:
General supplies/postage 4,625 3,068 (1,557)
Dues/training/travel 13,510 10,947 (2,563)
Contracts/repairs 1,000 697 (303)
Advertising 300 205 (95)
Professional Services 50 673 623
Special department supplies 2,850 4,371 1,521
Insurance 900 1,116 216
Contingencies 2,000 (170) (2,170)
Total 179,546 177,051 (2,495)
City Administration -
Personal services:
Salaries and wages 136,228139,120 2,892
FICA 10,421 10,616 195
Employee retirement 19,154 19,506 352
Employee insurance 7,500 8,198 698
Workers' compensation 6,950 4,411 (2,539)
Operating expenditures:
Contributions 15,000 15,000 -
General supplies/postage 1,850 1,880 30
Dues/training/travel 13,800 12,395 (1,405)
Contracts/repairs 6,650 4,171 (2,479)
Professional services 65,000102,291 37,291
Insurance 2,250 7,407 5,157
Contingencies 100,000 37,434(62,566)
Total 384,803 362,429 (22,374)
(continued)
60
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
SCHEDULE OF REVENUES AND EXPENDITURES COMPARED WITH BUDGET
GENERAL FUND
YEAR ENDED DECEMBER 31, 2018
2018
OriginalOver
and Final (Under)
BudgetActualBudget
General Government (continued):
Justice and Law -
Personal services:
Salaries and wages122,526 127,790 5,264
FICA9,3739,338(35)
Employee retirement15,17915,179-
Employee insurance7,5007,53636
Workers' compensation3,6002,285(1,315)
Operating expenditures:
General supplies/postage500 - (500)
State fees/fines491,047421,572(69,475)
Dues/training/travel5,4882,813(2,675)
Contracts and repairs10,8009,744(1,056)
Jury services2,0001,800(200)
Professional services22,52520,440(2,085)
Juvenile detention3,5004,305805
Insurance23,20028,7725,572
Total 717,238 651,574 (65,664)
Community Promotion -
Personal services:
FICA- 88
Operating expenditures:
Contributions48,200 48,200 -
Dues/training/travel5,9315,931 -
Special department supplies16,40012,580(3,820)
Insurance4,3005,3331,033
Total74,831 72,052 (2,779)
Finance -
Personal services:
Salaries and wages270,388 276,861 6,473
FICA20,68520,494(191)
Employee retirement38,01638,158142
Employee insurance30,00030,143143
Workers' compensation8,0006,437(1,563)
Operating expenditures:
General supplies/postage9,2009,834634
Dues/training/travel2,2252,27247
Data processing11,00012,7341,734
Contracts/repairs20,25015,010(5,240)
Advertising1,000723 (277)
Professional services20,85020,600(250)
Insurance3,2754,062787
Total 434,889 437,328 2,439
City Buildings -
Operating expenditures:
General supplies/postage20,000 18,566 (1,434)
Utility services199,000 308,067 109,067
Contracts/repairs77,197 72,250 (4,947)
Professional services6,70019,113 12,413
Insurance 23,900 29,640 5,740
Total 326,797 447,636 120,839
(continued)
61
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
SCHEDULE OF REVENUES AND EXPENDITURES COMPARED WITH BUDGET
GENERAL FUND
YEAR ENDED DECEMBER 31, 2018
2018
OriginalOver
and Final (Under)
BudgetActualBudget
General Government (continued):
Building Standards -
Personal services:
Salaries and wages252,256 262,739 10,483
Overtime pay- 314 314
FICA 19,298 19,721 423
Employee retirement35,467 36,777 1,310
Employee insurance33,750 33,906 156
Workers' compensation7,600 16,313 8,713
Operating expenditures:
General supplies/postage3,000 3,490 490
Dues/training/travel3,737 3,483 (254)
Auto operating6,200 5,129 (1,071)
Data processing10,000 9,986 (14)
Contracts/repairs3,070 3,940 870
Uniforms/clothing1,350 1,352 2
Professional services- 26,556 26,556
Special department supplies2,600 4,332 1,732
Insurance1,136 1,409 273
Capital lease payments9,005 8,764 (241)
Total 388,469 438,211 49,742
Planning and Development -
Personal services:
Salaries and wages176,160 89,670 (86,490)
FICA13,4766,278(7,198)
Employee retirement24,76811,371(13,397)
Employee insurance18,75018,80656
Workers' compensation5,0003,174(1,826)
Unemployment insurance - 2,9342,934
Operating expenditures:
General supplies/postage3,9002,065(1,835)
Dues/training/travel8,0002,127(5,873)
Data processing7,3757,016(359)
Contracts/repairs4,8002,322(2,478)
Advertising1,0001,793793
Professional services8,00022,36514,365
Special department supplies3,5003,347(153)
Insurance2,3002,852552
Capital lease payments2,0662,066-
Total 279,095 178,186 (100,909)
(continued)
62
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
SCHEDULE OF REVENUES AND EXPENDITURES COMPARED WITH BUDGET
GENERAL FUND
YEAR ENDED DECEMBER 31, 2018
2018
OriginalOver
and Final (Under)
BudgetActualBudget
General Government (continued):
Property Maintenance -
Personal services:
Salaries and wages569,026 580,285 11,259
Overtime pay15,440 20,923 5,483
FICA44,71244,045(667)
Employee retirement82,17682,732556
Employee insurance105,000105,168168
Workers' compensation16,70014,161(2,539)
Operating expenditures:
General supplies/postage7631,397634
Dues/training/travel2,1502,261111
Auto operating48,009 47,604 (405)
Utility services17,254 19,207 1,953
Contracts/repairs31,329 35,909 4,580
Building materials/supplies1,800 1,449 (351)
Uniforms/clothing7,694 7,755 61
Professional services129,720 125,275 (4,445)
Special department supplies126,200 122,768 (3,432)
Insurance18,575 23,036 4,461
Capital lease payments64,839 62,240 (2,599)
Capital outlay:
Machines/equipment24,800 70,962 46,162
Total1,306,187 1,367,177 60,990
Human Resources -
Personal services:
Salaries and wages113,992 147,129 33,137
FICA8,720 11,393 2,673
Employee retirement16,027 21,088 5,061
Employee insurance18,750 20,214 1,464
Workers' compensation3,600 2,285 (1,315)
Operating expenditures:
General supplies/postage2,200 2,297 97
Dues/training/travel1,555 2,466 911
Contracts/repairs1,850 783 (1,067)
Advertising11,172 4,120 (7,052)
Professional services 20,581 36,514 15,933
Special department supplies 39,233 29,507 (9,726)
Total 237,680 277,796 40,116
Information Technology -
Personal services:
Salaries and wages 71,904 77,007 5,103
FICA 5,501 5,556 55
Employee retirement 10,110 10,105 (5)
Employee insurance 11,250 12,296 1,046
Workers' compensation 2,200 1,396 (804)
Operating expenditures:
General supplies/postage 1,000 1,327 327
Auto operating 1,725 8,367 6,642
Utility services 96,700 96,260 (440)
Data processing 31,220 25,010 (6,210)
Contracts/repairs 52,900 23,083 (29,817)
Capital lease payments 5,894 5,534 (360)
Total 290,404 265,941 (24,463)
Total General Government 4,619,939$ 4,675,381$ 55,442$
(continued)
63
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
SCHEDULE OF REVENUES AND EXPENDITURES COMPARED WITH BUDGET
GENERAL FUND
YEAR ENDED DECEMBER 31, 2018
2018
OriginalOver
and Final (Under)
BudgetActualBudget
Public Safety -
Personal services:
Salaries and wages4,703,944$ 4,780,805$ 76,861$
Overtime pay144,300 175,277 30,977
FICA 370,891 365,092 (5,799)
Employee retirement787,947 762,508 (25,439)
Employee insurance675,000 677,548 2,548
Workers' compensation140,925 103,558 (37,367)
Operating expenditures:
General supplies/postage22,000 19,867 (2,133)
Dues/training/travel50,000 49,579 (421)
Auto operating226,750 264,742 37,992
Data processing112,635 126,385 13,750
Contracts/repairs265,000 264,651 (349)
Uniforms/clothing80,950 82,751 1,801
CVA expenditures36,320 13,839 (22,481)
LEN grant10,000 4,342 (5,658)
Community policing34,400 28,660 (5,740)
NAPS drug related account20,000 25,534 5,534
Professional services40,000 31,363 (8,637)
Special department supplies100,000 98,109 (1,891)
Insurance65,000 80,611 15,611
Capital lease payments468,954 467,981 (973)
Capital outlay:
Automotive equipment- 340,731 340,731
Machines and equipment5,000 25,105 20,105
Total Public Safety8,360,016$ 8,789,038$ 429,022$
Public Works:
Engineering -
Personal services:
Salaries and wages126,204$ 123,588$ (2,616)$
FICA9,655 9,291 (364)
Employee retirement17,744 16,844 (900)
Employee insurance18,750 18,475 (275)
Workers' compensation 2,475 1,571 (904)
Operating expenditures:
General supplies/postage 500 374 (126)
Dues/training/travel 2,005 1,606 (399)
Auto operating 2,375 1,675 (700)
Data processing 2,500 2,500 -
Contracts/repairs 2,280 6,865 4,585
Uniforms/clothing 1,000 464 (536)
Advertising 100 - (100)
Special department supplies 1,500 1,212 (288)
Insurance 18,400 22,819 4,419
Total 205,488 207,284 1,796
(continued)
64
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
SCHEDULE OF REVENUES AND EXPENDITURES COMPARED WITH BUDGET
GENERAL FUND
YEAR ENDED DECEMBER 31, 2018
2018
OriginalOver
and Final (Under)
BudgetActualBudget
Public Works (continued):
Street Lighting and Traffic Signals -
Operating expenditures:
Dues/training/travel2,450940(1,510)
Utility services433,220 454,70621,486
Contracts/repairs15,500 18,4922,992
Professional services6,000 6,101 101
Special department supplies28,50011,650(16,850)
Total485,670 491,889 6,219
Streets and Drains -
Personal services:
Salaries and wages458,517471,10812,591
Overtime pay7,5009,0561,556
FICA 35,650 35,770 120
Employee retirement 65,522 66,036 514
Employee insurance 75,000 75,357 357
Workers' compensation 14,200 14,625 425
Operating expenditures:
General supplies/postage 500 686 186
Dues/training/travel 2,500 2,059 (441)
Auto operating 35,600 35,377 (223)
Contracts/repairs 19,160 28,371 9,211
Building materials/supplies 70,000 62,919 (7,081)
Uniforms/clothing 5,940 6,106 166
Professional services 15,270 12,419 (2,851)
Special department supplies 17,850 17,338 (512)
Insurance 10,475 10,044 (431)
Capital lease payments 61,891 61,238 (653)
Capital outlay:
Machines and equipment - 45,412 45,412
Total 895,575 953,921 58,346
Total Public Works 1,586,733$ 1,653,094$ 66,361$
(continued)
65
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
SCHEDULE OF REVENUES AND EXPENDITURES COMPARED WITH BUDGET
GENERAL FUND
YEAR ENDED DECEMBER 31, 2018
2018
OriginalOver
and Final (Under)
BudgetActualBudget
Parks, Recreation, and Tourism:
Recreation -
Personal services:
Salaries and wages387,424$ 407,003$ 19,579$
Overtime pay6,000 10,672 4,672
FICA 30,097 31,521 1,424
Employee retirement44,974 45,387 413
Employee insurance30,000 30,143 143
Workers' compensation11,000 6,982 (4,018)
Operating expenditures:
General supplies/postage2,400 702 (1,698)
Dues/training/travel9,940 9,506 (434)
Auto operating2,600 3,241 641
Contract/repairs7,750 6,953 (797)
Uniforms/clothing900 - (900)
Advertising1,300 860 (440)
Professional services23,000 8,157 (14,843)
Special department supplies6,000 5,875 (125)
Basketball program37,000 40,776 3,776
Softball program27,400 17,259 (10,141) Football program28,000 33,348 5,348
Baseball program52,000 58,364 6,364 Soccer program57,000 48,602 (8,398)
Volleyball program4,200 4,677 477 Concession stand supplies83,000 100,820 17,820
Insurance16,750 20,773 4,023
Capital outlay:
Furniture/fixtures1,500 - (1,500)
Machines/equipment15,000 13,832 (1,168)
Total885,235 905,453 20,218
Parks -
Personal services:
Salaries and wages210,232 210,943 711
Overtime pay12,000 15,298 3,298
FICA 17,001 17,197 196
Employee retirement31,246 30,271 (975)
Employee insurance37,500 37,678 178
Workers' compensation6,700 4,956 (1,744)
Operating expenditures:
General supplies/postage1,500 226 (1,274)
Dues/training/travel1,150 649 (501)
Auto operating11,750 12,603 853
Utility services19,700 30,506 10,806
Contracts/repairs16,600 51,006 34,406
Building materials/supplies13,500 6,693 (6,807)
Uniforms/clothing2,100 1,595 (505)
Professional services4,000 - (4,000) Special department supplies18,500 6,912 (11,588)
Insurance7,300 9,053 1,753 Capital lease payments12,041 12,041 -
Capital outlay:Machines/equipment8,500 7,837 (663)
Park improvements100,000 - (100,000)
Total531,320 455,464 (75,856)
(continued)
66
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
SCHEDULE OF REVENUES AND EXPENDITURES COMPARED WITH BUDGET
GENERAL FUND
YEAR ENDED DECEMBER 31, 2018
2018
OriginalOver
and Final (Under)
BudgetActualBudget
Parks, Recreation, and Tourism (continued):
Community Center -
Personal services:
Salaries and wages 78,717 80,445 1,728
Overtime pay 2,000 241 (1,759)
FICA 6,175 6,152 (23)
Employee retirement11,349 11,086 (263)
Employee insurance15,000 15,071 71
Workers' compensation2,500 1,759 (741)
Operating expenditures:
General supplies/postage2,800 - (2,800)
Auto operating300 222 (78)
Utility services23,000 4,277 (18,723)
Contracts/repairs15,200 31,540 16,340
Uniforms/clothing700 602 (98)
Advertising3,000 2,858 (142)
Special department supplies11,000 4,826 (6,174)
Insurance3,275 4,062 787
Total175,016 163,141 (11,875)
RVP Activities Center -
Personal services:
Salaries and wages337,008 341,437 4,429
Overtime pay12,000 9,684 (2,316)
FICA 26,699 25,546 (1,153)
Employee retirement49,071 48,359 (712)
Employee insurance52,500 52,750 250
Workers' compensation9,500 6,030 (3,470)
Operating expenditures:
General supplies/postage15,500 15,411 (89)
Dues/training/travel1,400 1,112 (288)
Auto operating1,650 1,163 (487)
Utility services- (7,408) (7,408)
Contracts/repairs73,300 50,740 (22,560)
Uniforms/clothing1,400 124 (1,276)
Advertising2,300 476 (1,824)
Tournaments/special events165,000 162,786 (2,214)
Special department supplies29,500 33,595 4,095
Insurance15,275 18,942 3,667
Capital outlay:
Furniture/fixtures1,500 - (1,500)
Total793,603 760,747 (32,856)
(continued)
67
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
SCHEDULE OF REVENUES AND EXPENDITURES COMPARED WITH BUDGET
GENERAL FUND
YEAR ENDED DECEMBER 31, 2018
2018
OriginalOver
and Final (Under)
BudgetActualBudget
Parks, Recreation, and Tourism (continued):
Tourism -
Personal services:
Salaries and wages 128,675 123,183 (5,492)
Overtime pay 5,000 3,842 (1,158)
FICA 10,226 9,621 (605)
Employee retirement18,795 17,412 (1,383)
Employee insurance30,000 23,836 (6,164)
Workers' compensation4,075 2,586 (1,489)
Operating expenditures:
Contributions12,150 12,150 -
General supplies/postage7,000 7,344 344
Data processing2,100 - (2,100)
Uniforms/clothing1,000 685 (315)
Advertising- 1,916 1,916
Professional services- 30 30
Event and festival supplies155,000 176,876 21,876
Special department supplies20,000 20,711 711
Total394,021 400,192 6,171
Total Parks, Recreation, and Tourism2,779,195$ 2,684,997$ (94,198)$
Total Expenditures17,345,883$ 17,802,510$ 456,627$
68
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
DECEMBER 31, 2018
Total
Capital Special Nonmajor
ProjectsRevenue Governmental
Funds Funds Funds
ASSETS
Equity in pooled cash 126,498$ 565,367$ 691,865$
Investments 613,727 327,198 940,925
Accounts receivable 321,408 - 321,408
Grants receivable 266,219 - 266,219
Restricted cash and investments 1,891,874 139,336 2,031,210
Total Assets 3,219,726$ 1,031,901$ 4,251,627$
LIABILITIES
Accounts payable -$ 19,489$ 19,489$
Accrued salary and wages- 207 207
Due to other funds122,823 - 122,823
Unearned revenue - assessment fees83,772 - 83,772
Total Liabilities 206,595 19,696 226,291
FUND BALANCES
Fund balances:
Restricted for:
Capital projects 2,213,282 - 2,213,282
Public safety (Fire Division)- 131,540 131,540
Committed for:
Capital projects 455,446 - 455,446
Parks, recreation and tourism - 9,697 9,697
Special projects - 870,968 870,968
Assigned for:
Capital projects 344,403 - 344,403
Total Fund Balances 3,013,131 1,012,205 4,025,336
Total Liabilities and Fund Balances 3,219,726$ 1,031,901$ 4,251,627$
69
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
COMBINING BALANCE SHEET
NONMAJOR CAPITAL PROJECTS FUNDS
DECEMBER 31, 2018
Sales Sales Street TaxTransportation
Tax Tax IIImprovementsIncrementImprovement
Fund Fund Fund Fund Fund Total
ASSETS
Equity in pooled cash -$ -$ -$ 36,362$ 90,136$ 126,498$
Investments- - 468,583 1,462 143,682613,727
Accounts receivable- 321,408 - - - 321,408
Grants receivable- - 266,219- - 266,219
Restricted cash and investments108,227 1,027,284 100,000 - 656,363 1,891,874
Total Assets 108,227$ 1,348,692$ 834,802$ 37,824$ 890,181$ 3,219,726$
LIABILITIES
Due to other funds -$ -$ 122,823$ -$ -$ 122,823$
Unearned revenue - assessment fees - - - - 83,772 83,772
Total Liabilities - - 122,823 - 83,772 206,595
FUND BALANCES
Fund balances:
Restricted for:
Capital projects 108,227 1,348,692 100,000 - 656,363 2,213,282
Committed for:
Capital projects - - 303,383 37,824 114,239 455,446
Assigned for:
Capital projects - - 308,596 - 35,807 344,403
Total Fund Balances 108,227 1,348,692 711,979 37,824 806,409 3,013,131
Total Liabilities and Fund Balances 108,227$ 1,348,692$ 834,802$ 37,824$ 890,181$ 3,219,726$
70
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
COMBINING BALANCE SHEET
NONMAJOR SPECIAL REVENUE FUNDS
DECEMBER 31, 2018
Riverfront/
Central Core
RecreationFireman's Redevelopment
FundFundFundTotals
ASSETS
Equity in pooled cash 10,273$ -$ 555,094$ 565,367$
Investments - - 327,198 327,198
Restricted cash and investments - 139,336 - 139,336
Total Assets 10,273$ 139,336$ 882,292$ 1,031,901$
LIABILITIES
Accounts payable 576$ 7,796$ 11,117$ 19,489$
Accrued salary and wages - - 207 207
Total Liabilities 576 7,796 11,324 19,696
FUND BALANCES
Fund balances:
Restricted for:
Public safety (Fire Division)- 131,540 - 131,540
Committed for:
Parks, recreation and tourism9,697 - - 9,697
Special projects- - 870,968 870,968
Total Fund Balances 9,697 131,540 870,968 1,012,205
Total Liabilities and Fund Balances 10,273$ 139,336$ 882,292$ 1,031,901$
71
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
COMBINING STATEMENTS OF REVENUES, EXPENDITURES, AND CHANGES IN
FUND BALANCES ‐ NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED DECEMBER 31, 2018
Total
Capital SpecialNonmajor
ProjectsRevenueGovernmental
FundsFundsFunds
Revenues:
Ad valorem property taxes 751,052$ -$ 751,052$
Local hospitality and accommodations taxes - 1,718,195 1,718,195
Intergovernmental 587,627 60,934 648,561
Interest earnings 57,714 12,103 69,817
Miscellaneous 8,289 3,280 11,569
Total Revenues 1,404,682 1,794,512 3,199,194
Expenditures:
Current:
General government889 - 889
Public safety- 53,186 53,186
Public works2,415 - 2,415
Recreation and parks- 370,166 370,166
Capital outlay1,042,242 211,525 1,253,767
Total Expenditures1,045,546 634,877 1,680,423
Other Financing Sources (Uses):
Transfers in 17,655 - 17,655
Transfers out (1,286,287) (1,612,230) (2,898,517)
Total Other Financing Sources (Uses)(1,268,632) (1,612,230) (2,880,862)
Net change in fund balance (909,496) (452,595) (1,362,091)
Fund balance, beginning of year 3,922,627 1,464,800 5,387,427
Fund balance, end of year 3,013,131$ 1,012,205$ 4,025,336$
72
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
COMBINING STATEMENTS OF REVENUES, EXPENDITURES, AND CHANGES IN
FUND BALANCES ‐ NONMAJOR CAPITAL PROJECTS FUNDS
YEAR ENDED DECEMBER 31, 2018
Sales Sales Street TaxTransportation
Tax Tax IIImprovementsIncrementImprovement
Fund Fund Fund Fund Fund Totals
Revenues:
Ad valorem property taxes -$ -$ -$ 751,052$ -$ 751,052$
Intergovernmental - 321,408 266,219 - - 587,627
Interest earnings 2,150 24,946 10,240 3,728 16,650 57,714
Miscellaneous - - 8,289 - - 8,289
Total Revenues 2,150 346,354 284,748 754,780 16,650 1,404,682
Expenditures:
Current:
General government- - - 889 - 889
Public works- - 2,415- - 2,415
Capital outlay- 760,582 281,660 - - 1,042,242
Total Expenditures - 760,582 284,075 889 - 1,045,546
Other Financing Sources (Uses):
Transfers in - 17,655 - - - 17,655
Transfers out- - - (1,286,287) - (1,286,287)
Total Other Financing Sources (Uses)- 17,655 - (1,286,287) - (1,268,632)
Net change in fund balance2,150 (396,573) 673 (532,396) 16,650 (909,496)
Fund balance, beginning of year 106,077 1,745,265 711,306 570,220 789,759 3,922,627
Fund balance, end of year 108,227$ 1,348,692$ 711,979$ 37,824$ 806,409$ 3,013,131$
73
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
COMBINING STATEMENTS OF REVENUES, EXPENDITURES, AND CHANGES IN
FUND BALANCES ‐ NONMAJOR SPECIAL REVENUE FUNDS
YEAR ENDED DECEMBER 31, 2018
Riverfront/
Central Core
RecreationFireman'sRedevelopment
FundFundFundTotals
Revenues:
Local hospitality and accommodations taxes -$ -$ 1,718,195$ 1,718,195$
Intergovernmental - 60,934 - 60,934
Interest earnings 37 382 11,684 12,103
Miscellaneous 3,280 - - 3,280
Total Revenues 3,317 61,316 1,729,879 1,794,512
Expenditures:
Current:
Public safety- 53,186 - 53,186
Recreation and parks- - 370,166 370,166
Capital outlay12,000 - 199,525 211,525
Total Expenditures12,000 53,186 569,691 634,877
Other Financing Uses:
Transfers out - - (1,612,230) (1,612,230)
Total Other Financing Uses - - (1,612,230) (1,612,230)
Net change in fund balance (8,683) 8,130 (452,042) (452,595)
Fund balance, beginning of year 18,380 123,410 1,323,010 1,464,800
Fund balance, end of year 9,697$ 131,540$ 870,968$ 1,012,205$
74
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
SCHEDULE OF REVENUES AND EXPENSES ‐ BUDGETED AND ACTUAL
ENTERPRISE FUND ‐ WATER AND WASTEWATER SYSTEM
YEAR ENDED DECEMBER 31, 2018
2018
OriginalOver
and Final(Under)
BudgetActualBudget
Operating Revenues:
Water sales3,266,751$ 3,231,940$ (34,811)$
Sewer sales6,037,593 6,243,287 205,694
Water tap fees95,671 92,334 (3,337)
Sewer tap fees108,721 165,448 56,727
Fire protection fees11,741 13,918 2,177
Other440,004505,84365,839
Total Operating Revenues9,960,481 10,252,770 292,289
Operating Expenses:
Utilities Finance544,145 544,637 492
Utilities Administration997,993 880,907 (117,086)
Water Operations and Maintenance1,025,152 814,431 (210,721)
Water Production and Treatment1,539,554 1,478,577 (60,977)
Wastewater Operations and Maintenance3,853,413 3,495,993 (357,420)
Depreciation and amortization- 1,234,447 1,234,447
Total Operating Expenses7,960,257 8,448,992 488,735
Nonoperating Revenues (Expenses):
Intergovernmental- 13,480 13,480
Interest earnings17,000 204,588 187,588
Interest expense and fiscal charges- (447,543) (447,543)
Gain on sale of capital assets - 10,230 10,230
Total Nonoperating Revenues (Expenses):17,000 (219,245) (236,245)
Income before contributions and operating transfers2,017,224 1,584,533 (432,691)
Capital contributions- 178,713 178,713
Transfers out(1,913,767) (478,767)1,435,000
Change in net position103,457$ 1,284,479$ 1,181,022$
75
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
SCHEDULE OF OPERATING EXPENSES ‐ BUDGETED AND ACTUAL
ENTERPRISE FUND ‐ WATER AND WASTEWATER SYSTEM
YEAR ENDED DECEMBER 31, 2018
2018
OriginalOver
and Final(Under)
BudgetActualBudget
Utilities Finance:
Personal services:
Salaries and wages213,347$ 193,284$ (20,063)$
FICA16,321 14,118 (2,203)
Employee retirement29,997 44,826 14,829
Employee insurance37,500 37,678 178
Workers' compensation4,000 2,539 (1,461)
Operating expenses:
General supplies/postage84,000 76,165 (7,835)
Dues/training/travel3,805 2,054 (1,751)
Data processing70,300 93,400 23,100
Contracts and repairs26,300 27,071 771
Professional services22,225 17,320 (4,905)
Special department supplies500 372 (128)
Insurance4,850 4,810 (40)
Bad debts31,000 31,000 -
Total Utilities Finance544,145 544,637 492
Utilities Administration:
Personal services:
Salaries and wages528,345513,222(15,123)
Overtime pay 7,280 9,736 2,456
FICA 41,080 37,765 (3,315)
Employee retirement 77,616121,632 44,016
Employee insurance 72,090 71,310 (780)
Workers' compensation 16,200 10,282 (5,918)
Operating expenses:
General supplies/postage 4,975 1,772 (3,203)
Dues/training/travel 6,305 6,451 146
Auto operating 11,688 14,190 2,502
Utility services 13,498 12,430 (1,068)
Contracts and repairs 82,588 40,333(42,255)
Building material 400 303 (97)
Uniforms and clothing 2,303 2,191 (112)
Professional services 37,895 5,252 (32,643)
Data processing 34,600 27,678 (6,922)
Special department supplies 41,290 4,327(36,963)
Lease purchase 17,790 - (17,790)
Insurance 2,050 2,033 (17)
Total Utilities Administration 997,993 880,907 (117,086)
(continued)
76
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
SCHEDULE OF OPERATING EXPENSES ‐ BUDGETED AND ACTUAL
ENTERPRISE FUND ‐ WATER AND WASTEWATER SYSTEM
YEAR ENDED DECEMBER 31, 2018
2018
OriginalOver
and Final(Under)
BudgetActualBudget
Water Operations and Maintenance:
Personal services:
Salaries and wages352,316 349,573 (2,743)
Overtime pay13,519 16,416 2,897
FICA27,986 26,405 (1,581)
Employee retirement51,436 82,841 31,405
Employee insurance60,000 60,947 947
Workers' compensation11,250 7,269 (3,981)
Operating expenses:
Dues/training1,960 2,291 331
Auto operating32,930 28,111 (4,819)
Contracts and repairs19,994 13,415 (6,579)
Building material11,650 6,258 (5,392)
Uniforms and clothing4,115 3,783 (332)
Advertising2,100421 (1,679)
Special department supplies103,795 86,173 (17,622)
Insurance3,900 3,868 (32)
Line upgrades225,440126,660(98,780)
Leases75,561 - (75,561)
Small equipment27,200 - (27,200)
Total Water Operations and Maintenance1,025,152 814,431 (210,721)
Water Production and Treatment:
Personal services:
Salaries and wages445,848 453,374 7,526
Overtime pay28,492 29,952 1,460
FICA36,287 34,392 (1,895)
Employee retirement66,692 112,705 46,013
Employee insurance60,000 60,285 285
Workers' compensation15,450 9,806 (5,644)
Operating expenses:
General supplies3,500 1,569 (1,931)
Dues/training 5,425 5,649 224
Auto operating 5,983 2,963 (3,020)
Utility services 437,521 402,717 (34,804)
Contracts and repairs 126,461 80,526 (45,935)
Building material1,850 1,726 (124)
(continued)
77
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
SCHEDULE OF OPERATING EXPENSES ‐ BUDGETED AND ACTUAL
ENTERPRISE FUND ‐ WATER AND WASTEWATER SYSTEM
YEAR ENDED DECEMBER 31, 2018
2018
OriginalOver
and Final(Under)
BudgetActualBudget
Water Production and Treatment (continued):
Operating expenses (continued):
Uniforms and clothing3,320 3,053 (267)
Professional services105,086 98,013 (7,073)
ACPSA treatment charges4,500 1,930 (2,570)
Special department supplies166,854 167,519 665
Insurance12,500 12,398 (102)
Leases3,585 - (3,585)
Small equipment10,200 - (10,200)
Total Water Production and Treatment1,539,554 1,478,577 (60,977)
Wastewater Operations and Maintenance:
Personal services:
Salaries and wages454,136 427,537 (26,599)
Overtime pay 18,443 13,306 (5,137)
FICA 36,152 31,365 (4,787)
Employee retirement 66,445 99,454 33,009
Employee insurance75,000 76,019 1,019
Workers' compensation14,325 12,953 (1,372)
Operating expenses:
Dues/training900 1,000 100
Auto operating 28,580 36,840 8,260
Utility services 68,102 65,282 (2,820)
Contracts and repairs 70,718 63,518 (7,200)
Building material13,230 12,381 (849)
Uniforms and clothing4,470 4,495 25
Professional services- 229 229
ACPSA treatment charges 2,874,402 2,587,018 (287,384)
Special department supplies 17,372 21,012 3,640
Insurance 41,525 43,584 2,059
Leases 52,350 - (52,350)
Small equipment 17,263 - (17,263)
Total Wastewater Operations and Maintenance3,853,413 3,495,993 (357,420)
Depreciation and amortization- 1,234,447 1,234,447
Total Operating Expenses7,960,257$ 8,448,992$ 488,735$
78
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
SCHEDULE OF REVENUES AND EXPENSES ‐ BUDGETED AND ACTUAL
ENTERPRISE FUND ‐ SANITATION SERVICES
YEAR ENDED DECEMBER 31, 2018
2018
OriginalOver
and Final(Under)
BudgetActualBudget
Operating Revenues:
Sanitation service fees3,279,300$ 3,331,802$ 52,502$
Recycling fees770,600 822,723 52,123
Sale of recyclables348,000 201,163 (146,837)
Other69,258 261,677 192,419
Total Operating Revenues4,467,158 4,617,365 150,207
Operating Expenses:
Sanitation operations2,632,437 2,504,066 (128,371)
Material recovery facility1,681,237 1,483,340 (197,897)
Depreciation- 623,319 623,319
Total Operating Expenses4,313,674 4,610,725 297,051
Nonoperating Revenues (Expenses):
Intergovernmental 49,000 67,156 18,156
Interest income 12,000 43,012 31,012
Interest earnings- (14,211) (14,211)
Gain on disposal of assets- 44,950 44,950
Total Nonoperating Revenues61,000 140,907 79,907
Income before transfers 214,484 147,547 (66,937)
Transfers out(214,484) (214,484) -
Change in net position-$ (66,937)$ (66,937)$
79
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
SCHEDULE OF OPERATING EXPENSES ‐ BUDGETED AND ACTUAL
ENTERPRISE FUND ‐ SANITATION SERVICES
YEAR ENDED DECEMBER 31, 2018
2018
OriginalOver
and Final(Under)
BudgetActualBudget
Sanitation Operations:
Personal services:
Salaries and wages1,180,479$ 1,102,697$ (77,782)$
Overtime pay 13,621 20,232 6,611
FICA 91,449 81,979 (9,470)
Employee retirement 169,347254,322 84,975
Employee insurance 203,304204,052 748
Workers' compensation 33,700 48,855 15,155
Operating expenses:
General supplies 2,038 1,488 (550)
Dues/training 3,342 3,026 (316)
Auto operating 334,171381,775 47,604
Utility services 21,680 32,530 10,850
Data processing 10,600 14,314 3,714
Contracts and repairs 27,325 42,450 15,125
Uniforms and clothing 10,460 8,754 (1,706)
Advertising 2,100 284 (1,816)
Professional services 12,350 10,723 (1,627)
Special department supplies 242,664265,677 23,013
Judgments/settlements - 1,500 1,500
Leases 244,157 - (244,157)
Insurance 29,650 29,408 (242)
Total Sanitation Operations 2,632,437 2,504,066 (128,371)
(continued)
80
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
SCHEDULE OF OPERATING EXPENSES ‐ BUDGETED AND ACTUAL
ENTERPRISE FUND ‐ SANITATION SERVICES
YEAR ENDED DECEMBER 31, 2018
2018
OriginalOver
and Final(Under)
BudgetActualBudget
Material Recovery Facility:
Personal services:
Salaries and wages383,080 358,450 (24,630)
Overtime pay17,193 14,267 (2,926)
FICA30,621 28,839 (1,782)
Employee retirement56,278 84,930 28,652
Employee insurance63,750 64,053 303
Workers' compensation12,500 8,819 (3,681)
Operating expenses:
General supplies1,515 1,519 4
Dues/training980 409 (571)
Auto operating87,897 107,161 19,264
Utility services17,147 18,825 1,678
Contracts and repairs74,979 149,854 74,875
Building material1,450 561 (889)
Recycling expenses45,493 19,968 (25,525)
Uniforms and clothing4,067 4,067 -
Professional services175,694 180,698 5,004
Special department supplies401,787 419,595 17,808
Leases 101,006 - (101,006)
Small equipment184,300 - (184,300)
Insurance21,500 21,325 (175)
Total Material Recovery Facility 1,681,237 1,483,340 (197,897)
Depreciation- 623,319 623,319
Total Operating Expenses4,313,674$ 4,610,725$ 297,051$
81
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
SCHEDULE OF REVENUES AND EXPENSES ‐ BUDGETED AND ACTUAL
ENTERPRISE FUND ‐ STORMWATER UTILITY FUND
YEAR ENDED DECEMBER 31, 2018
2018
OriginalOver
and Final(Under)
BudgetActualBudget
Operating Revenues:
Stormwater utility fees770,000$ 782,958$ 12,958$
Other6,831 17,425 10,594
Total Operating Revenues776,831 800,383 23,552
Operating Expenses:
Stormwater operations780,796 569,813 (210,983)
Depreciation- 91,457 91,457
Total Operating Expenses780,796 661,270 (119,526)
Nonoperating Revenues (Expenses):
Interest earnings3,965 16,481 12,516
Interest expense and fiscal charges- (717) (717)
Total Nonoperating Revenues 3,965 15,764 11,799
Income before contributions - 154,877 154,877
Contributions - 368,798 368,798
Change in net position -$ 523,675$ 523,675$
82
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
SCHEDULE OF OPERATING EXPENSES ‐ BUDGETED AND ACTUAL
ENTERPRISE FUND ‐ STORMWATER UTILITY FUND
YEAR ENDED DECEMBER 31, 2018
2018
OriginalOver
and Final(Under)
BudgetActualBudget
Stormwater Operations:
Personal services:
Salaries and wages341,939$ 346,617$ 4,678$
Overtime pay 1,800 2,095 295
FICA 26,312 25,390 (922)
Employee retirement 48,330 73,155 24,825
Employee insurance37,74038,489749
Workers' compensation8,550 5,427 (3,123)
Operating expenses:
General supplies1,400860 (540)
Dues/training4,4251,820(2,605)
Auto operating 7,900 4,963 (2,937)
Data processing29,30031,7412,441
Contracts and repairs7,3402,618 (4,722)
Uniforms and clothing2,000 1,774 (226)
Advertising 3,000 2,812 (188)
Professional services 23,426 20,868 (2,558)
Special department supplies 7,191 4,365 (2,826)
Insurance 6,875 6,819 (56)
Leases 10,010 - (10,010)
Drainage projects 213,258 - (213,258)
Total Stormwater Operations 780,796 569,813 (210,983)
Depreciation - 91,457 91,457
Total Operating Expenses 780,796$ 661,270$ (119,526)$
83
SCHEDULE REQUIRED BY STATE LAW
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
SCHEDULE OF FINES, ASSESSMENTS, AND SURCHARGES
GENERAL FUND
YEAR ENDED DECEMBER 31, 2018
Court Fines & Assessments:
Court fines collected 808,339$
Court fines retained by City 385,504
Court fines remitted to State Treasurer 422,835$
Court Surcharges and Assessments:
Court surcharges collected and retained6,085$
Assessments retained by City35,013
Court surcharges and assessments retained for Victim Services 41,098$
Victim Services:
Court assessments allocated to Victim Services 35,013$
Court surcharges allocated to Victim Services 6,085
Funds allocated to Victim Services 41,098
Victim Services Expenditures 37,492
Funds Allocated to Victim Services in Excess of Victim Services Expenditures 3,606
Funds available for carryforward - beginning of year 107,443
Funds available for carryforward - end of year 111,049$
84
COMPLIANCE SECTION
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, 2018, and the related notes to the
financial statements, which collectively comprise the City’s basic financial statements, and have issued our
report thereon dated June 14, 2019.
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.
85
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
June 14, 2019
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
2009 2010 2011 2012 2013
Governmental activities
Net investment in capital assets 43,873,602$ 44,780,462$ 48,387,572$ 51,180,628$ 53,791,597$
Restricted 9,771 5,461 9,158,402 7,210,998 7,810,702
Unrestricted 12,594,803 15,028,645 6,382,049 7,342,802 5,466,773
Total governmental activities net position 56,478,176$ 59,814,568$ 63,928,023$ 65,734,428$ 67,069,072$
Business-type activities
Net investment in capital assets 40,738,413$ 41,186,486$ 44,889,398$ 46,022,914$ 47,734,609$
Restricted 9,329,287 10,537,438 9,422,871 10,116,845 10,104,431
Unrestricted 9,289,594 9,417,349 8,342,254 8,233,390 7,777,449
Total business-type activities net position 59,357,294$ 61,141,273$ 62,654,523$ 64,373,149$ 65,616,489$
Primary Government
Net investment in capital assets 84,612,015$ 85,966,948$ 93,276,970$ 97,203,542$ 101,526,206$
Restricted 9,339,058 10,542,899 18,581,273 17,327,843 17,915,133
Unrestricted 21,884,397 24,445,994 14,724,303 15,576,192 13,244,222
Total primary government net position 115,835,470$ 120,955,841$ 126,582,546$ 130,107,577$ 132,685,561$
2014 2015 2016 2017 2018
Governmental activities
Net investment in capital assets 57,779,457$ 59,649,524$ 60,261,553$ 46,115,747$ 65,640,358$
Restricted 7,536,710 6,964,338 7,616,189 23,744,254 6,574,221
Unrestricted 4,267,933 (6,848,500) (5,705,943) (5,641,833) (7,354,106)
Total governmental activities net position 69,584,100$ 59,765,362$ 62,171,799$ 64,218,168$ 64,860,473$
Business-type activities
Net investment in capital assets 51,802,542$ 53,610,839$ 53,203,765$ 55,927,179$ 58,580,045$
Restricted 9,883,717 10,248,230 11,374,284 9,618,737 7,977,008
Unrestricted 6,767,765 (1,175,007) (387,763) 492,016 1,215,467
Total business-type activities net position 68,454,024$ 62,684,062$ 64,190,286$ 66,037,932$ 67,772,520$
Primary Government
Net investment in capital assets 109,581,999$ 113,260,363$ 113,465,318$ 102,042,926$ 124,220,403$
Restricted 17,420,427 17,212,568 18,990,473 33,362,991 14,551,229
Unrestricted 11,035,698 (8,023,507) (6,093,706) (5,149,817) (6,138,639)
Total primary government net position 138,038,124$ 122,449,424$ 126,362,085$ 130,256,100$ 132,632,993$
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 $18,624,474 was required to reflect implementation.
City of North Augusta, South CarolinaNet Position by ComponentLast Ten Fiscal Years
(accrual basis of accounting)
Year Ending December 31
Year Ending December 31
87
2009 2010 2011 2012 2013Expenses
Governmental activities:
General government 3,646,500$ 3,798,574$ 3,416,002$ 3,574,637$ 3,893,288$ Public safety 5,414,709 5,898,849 6,546,364 6,975,047 6,615,699
Public works 1,883,507 1,796,722 2,796,708 2,980,032 2,609,477
Recreation and parks 3,623,796 3,994,496 3,792,045 4,053,013 4,212,673 Debt service - interest and fees 476,037 380,060 358,055 340,610 313,866 Loss on debt defeasance - - - - 277,682
Total governmental activities expenses 15,044,549$ 15,868,701$ 16,909,174$ 17,923,339$ 17,922,685$
Business-type activities: Water and wastewater 6,782,763$ 6,994,927$ 7,220,770$ 6,958,202$ 7,491,321$
Sanitation 3,012,364 3,054,296 3,168,553 3,160,647 3,376,614 Stormwater utility 529,291 519,481 542,919 568,984 826,121 Savannah Bluff Lock and Dam 6,062 23,275 22,000 24,000 24,000
Total business-type activities expenses 10,330,480$ 10,591,979$ 10,954,242$ 10,711,833$ 11,718,056$
Total primary government expenses 25,375,029$ 26,460,680$ 27,863,416$ 28,635,172$ 29,640,741$
Program RevenuesGovernmental activities:
Charges for services: General government 4,344,903$ 4,386,190$ 4,605,180$ 4,711,699$ 4,892,172$ Public safety 945,905 1,082,900 1,177,117 1,092,699 1,055,155
Public Works 41,692 42,894 40,512 46,970 60,381
Recreation and parks 921,644 1,110,505 1,060,317 1,019,548 1,058,841 Operating grants and contributions 748,276 850,731 1,334,520 801,328 811,914 Capital grants and contributions 1,813,172 489,270 1,569,830 1,619,796 1,357,083
Total governmental activities program revenues 8,815,592$ 7,962,490$ 9,787,476$ 9,292,040$ 9,235,546$
Business-type activities:
Charges for services:
Water and wastewater 7,714,553$ 8,148,497$ 8,450,349$ 8,388,987$ 8,564,524$ Sanitation 3,182,076 3,384,930 3,400,975 3,388,623 3,647,518 Stormwater utility 554,394 563,305 572,288 573,660 575,233
Capital grants and contributions 955,928 511,472 245,500 206,463 220,936
Total business-type activities program revenues 12,406,951$ 12,608,204$ 12,669,112$ 12,557,733$ 13,008,211$
Total primary government program revenues 21,222,543$ 20,570,694$ 22,456,588$ 21,849,773$ 22,243,757$
Net (expense) / revenue
Governmental activities (6,228,957)$ (7,906,211)$ (7,121,698)$ (8,631,299)$ (8,687,139)$ Business-type activities 2,076,471 2,016,225 1,714,870 1,845,900 1,290,155 Total primary government net expense (4,152,486)$ (5,889,986)$ (5,406,828)$ (6,785,399)$ (7,396,984)$
General Revenues and Other Changes in Net Position
Governmental activities:
Ad valorem property taxes 5,994,545$ 6,142,064$ 6,294,172$ 6,780,783$ 6,858,860$ Capital projects sales taxes 3,331,626 3,354,214 3,474,959 1,861,677 1,180,511 Local hospitality and accommodations taxes 548,490 555,230 559,853 584,227 622,971
Interest on investments 92,616 54,755 33,350 77,894 70,768 Miscellaneous 106,871 577,187 336,245 590,882 631,662 Transfers 537,959 559,153 536,574 542,241 657,011
Total governmental activities 10,612,107$ 11,242,603$ 11,235,153$ 10,437,704$ 10,021,783$
Business-type activities: Interest on investments 95,157$ 63,562$ 42,216$ 56,203$ 48,450$
Miscellaneous 427,190 263,345 292,738 358,764 561,746
Transfers (537,959) (559,153) (536,574) (542,241) (657,011) Total business-type activities (15,612)$ (232,246)$ (201,620)$ (127,274)$ (46,815)$
Total primary government 10,596,495$ 11,010,357$ 11,033,533$ 10,310,430$ 9,974,968$
Change in Net PositionGovernmental activities 4,383,150$ 3,336,392$ 4,113,455$ 1,806,405$ 1,334,644$ Business-type activities 2,060,859 1,783,979 1,513,250 1,718,626 1,243,340
Total primary government 6,444,009$ 5,120,371$ 5,626,705$ 3,525,031$ 2,577,984$
(continued)
(accrual basis of accounting)
Year Ending December 31
City of North Augusta, South CarolinaChanges in Net PositionLast Ten Fiscal Years
88
2014 2015 2016 2017 2018ExpensesGovernmental activities:
General government 4,181,576$ 4,573,665$ 4,519,094$ 7,474,923$ 8,855,053$
Public safety 7,232,466 7,517,589 8,473,548 8,736,202 9,253,259 Public works 2,348,897 2,051,542 580,327 2,695,126 2,736,631
Recreation and parks 4,501,259 4,723,035 5,061,480 4,913,582 3,785,041
Debt service - interest and fees 163,147 168,583 155,047 338,132 1,568 Loss on debt defeasance - - - - - Total governmental activities expenses 18,427,345$ 19,034,414$ 18,789,496$ 24,157,965$ 24,631,552$
Business-type activities: Water and sewer 7,420,051$ 8,081,456$ 7,745,232$ 8,359,555$ 8,896,535$ Sanitation 3,958,515 4,316,548 4,594,016 4,536,142 4,624,936
Stormwater utility 507,555 494,179 541,495 638,634 661,987 Savannah Bluff Lock and Dam utility 24,000 24,000 24,000 24,000 23,999 Total business-type activities expenses 11,910,121$ 12,916,183$ 12,904,743$ 13,558,331$ 14,207,457$
Total primary government expenses 30,337,466$ 31,950,597$ 31,694,239$ 37,716,296$ 38,839,009$
Program RevenuesGovernmental activities: Charges for services:
General government 5,272,149$ 5,621,613$ 5,885,657$ 6,229,497$ 6,361,953$ Public safety 1,109,022 1,195,544 1,060,102 1,041,202 892,138 Public Works 62,664 65,907 78,018 158,147 167,961
Recreation and parks 1,090,469 1,162,485 1,260,024 1,148,108 1,829,789
Operating grants and contributions 1,433,764 872,652 791,316 1,083,944 1,377,317 Capital grants and contributions 468,934 - - 207,768 - Total governmental activities program revenues 9,437,002$ 8,918,201$ 9,075,117$ 9,868,666$ 10,629,158$
Business-type activities: Charges for services:
Water and sewer 8,800,125$ 8,664,457$ 9,155,898$ 9,459,054$ 9,746,927$
Sanitation 4,163,934 4,168,309 4,246,959 4,472,281 4,355,688 Stormwater utility 584,566 746,814 759,131 770,135 782,958 Operating grants and contributions 264,747 2,449 - 10,161 80,636
Capital grants and contributions 618,036 396,837 124,408 103,591 23,514
Total business-type activities program revenues 14,431,408$ 13,978,866$ 14,286,396$ 14,815,222$ 14,989,723$
Total primary government program revenues 23,868,410$ 22,897,067$ 23,361,513$ 24,683,888$ 25,618,881$
Net (expense) / revenue
Governmental activities (8,990,343)$ (10,116,213)$ (9,714,379)$ (14,289,299)$ (14,002,394)$ Business-type activities 2,521,287 1,062,683 1,381,653 1,256,891 782,266 Total primary government net expense (6,469,056)$ (9,053,530)$ (8,332,726)$ (13,032,408)$ (13,220,128)$
General Revenues and Other Changes in Net Position
Governmental activities:
Ad valorem property taxes 6,993,684$ 6,874,139$ 7,162,650$ 8,146,680$ 8,143,925$ Capital projects sales taxes 2,733,613 2,828,301 2,891,291 3,109,712 3,179,463 Local hospitality and accommodations taxes 661,531 713,903 764,056 790,749 1,718,195
Interest on investments 69,440 89,791 192,906 423,369 400,007 Gain(loss) on disposal of capital assets - (3,311) - - 9,441 Miscellaneous 696,936 886,062 568,970 3,659,328 1,024,414
Transfers 378,848 514,893 540,943 205,830 169,254
Total governmental activities 11,534,052$ 11,903,778$ 12,120,816$ 16,335,668$ 14,644,699$
Business-type activities:
Interest on investments 50,735$ 69,410$ 120,990$ 145,025$ 281,451$
Gain(loss) on disposal of capital assets - 46,107 (12,606) 78,747 55,180 Miscellaneous 644,361 584,902 557,130 572,813 784,945
Transfers (378,848) (514,893) (540,943) (205,830) (169,254)
Total business-type activities 316,248$ 185,526$ 124,571$ 590,755$ 952,322$
Total primary government 11,850,300$ 12,089,304$ 12,245,387$ 16,926,423$ 15,597,021$
Change in Net Position
Governmental activities 2,543,709$ 1,787,565$ 2,406,437$ 2,046,369$ 642,305$
Business-type activities 2,837,535 1,248,209 1,506,224 1,847,646 1,734,588 Total primary government 5,381,244$ 3,035,774$ 3,912,661$ 3,894,015$ 2,376,893$
(accrual basis of accounting)
Year Ending December 31
City of North Augusta, South Carolina
Changes in Net Position
Last Ten Fiscal Years
89
2009 2010 2011 2012 2013
General Fund
Reserved 10,947$ 6,780$ -$ -$ -$
Unreserved 595,511 522,008 - - -
Nonspendable * - - 1,723 1,220 1,630
Restricted *- - 2,600 3,140 32,841
Committed *- - 695,829 1,143,666 966,050
Total General Fund 606,458$ 528,788$ 700,152$ 1,148,026$ 1,000,521$
All Other Governmental Funds
Reserved 7,187$ -$ -$ -$ -$
Unreserved 12,509,474 15,060,268 - - -
Restricted *- - 8,599,562 6,725,864 7,065,591
Committed *- - 2,053,852 1,197,249 1,534,983
Assigned *- - 4,728,272 6,031,460 4,234,929
Total all other governmental funds 12,516,661$ 15,060,268$ 15,381,686$ 13,954,573$ 12,835,503$
2014 2015 2016 2017 2018
General Fund
Nonspendable * 1,774$ -$ -$ -$ -$
Restricted *60,140 88,746 103,644 107,443 111,049
Committed *1,073,650 796,106 1,484,194 1,121,426 937,499
Unassigned *- 2,375,000 2,475,000 2,625,000 2,825,000
Total General Fund 1,135,564$ 3,259,852$ 4,062,838$ 3,853,869$ 3,873,548$
All Other Governmental Funds
Restricted *6,746,666 5,790,157 7,512,545 23,636,811 10,531,546
Committed *2,114,554 2,184,346 2,950,803 3,731,713 2,669,258
Assigned *2,489,051 1,261,269 428,854 367,043 344,403
Unassigned *(188,988) (69,258) - - -
Total all other governmental funds 11,161,283$ 9,166,514$ 10,892,202$ 27,735,567$ 13,545,207$
*GASB 54, Fund Balance Reporting and Governmental Fund Type Definitions, was adopted by the City for Fiscal Year 2011.
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)
90
2009 2010 2011 2012 2013Revenues
Ad valorem taxes 5,994,545$ 6,142,064$ 6,294,172$ 6,780,783$ 6,858,860$
Sales taxes 3,331,626 3,354,214 3,474,959 1,861,677 1,180,511 Local hospitality and accommodations taxes 548,490 555,230 559,853 584,227 622,971 Licenses and permits 4,344,903 4,386,190 4,605,181 4,711,699 4,892,172 Fines and forfeitures 880,343 1,017,029 1,113,435 1,029,126 991,039 Charges for services 1,083,661 1,176,376 1,123,999 1,083,121 1,122,957 Intergovernmental 2,181,554 1,105,430 2,050,355 1,198,831 1,141,759 Miscellaneous/interest earnings 453,852 513,604 369,594 675,603 697,191 Contributions - - 62,497 310,352 1,000 421,586 - 17,563 4,352 - Total Revenues 19,240,560$ 18,250,137$ 19,671,608$ 18,239,771$ 17,508,460$
Expenditures
General government 2,921,774$ 3,296,614$ 2,964,818$ 2,984,191$ 3,302,811$ Public safety 5,091,162 5,547,594 6,092,949 6,502,974 6,058,506 Public works 1,078,396 1,182,030 1,117,385 1,176,290 1,157,668 Parks, recreation and tourism 2,818,409 2,947,681 2,966,513 3,154,330 3,141,942 Capital outlay 8,928,503 2,596,756 5,903,648 5,089,261 1,353,010 Debt service: Capital lease payments 945,126 883,675 974,915 1,024,075 4,117,682 Interest and fiscal charges 412,307 386,664 361,398 345,547 599,101 Intergovernmental - - - - - Total Expenditures 22,195,677$ 16,841,014$ 20,381,626$ 20,276,668$ 19,730,720$
Excess (deficiency) of revenues over (under) expenditures (2,955,117)$ 1,409,123$ (710,018)$ (2,036,897)$ (2,222,260)$
Other financing sources (uses)Proceeds on sale of capital assets -$ 293,749$ -$ -$ -$ Inception of capital lease obligation 285,909 217,368 666,226 515,417 309,494 Lease issuance cost - - - - - Issuance of bonds - - - - - Transfers in 771,195 1,141,208 913,575 1,135,143 1,691,350 Transfers out (257,821) (595,511) (377,001) (592,902) (1,045,159) Total other financing sources (uses)799,283$ 1,056,814$ 1,202,800$ 1,057,658$ 955,685$
Net change in fund balance (2,155,834)$ 2,465,937$ 492,782$ (979,239)$ (1,266,575)$
Debt service as a percentage of noncapital expenditures 9.77%8.90%8.72%8.42%24.83%
2014 2015 2016 2017 2018RevenuesAd valorem taxes 6,993,526$ 6,871,821$ 7,163,429$ 7,446,013$ 8,018,222$ Sales taxes 2,733,613 2,828,301 2,891,291 3,109,712 3,179,463 Local hospitality and accommodations taxes 661,531 713,903 764,056 790,749 1,718,195 Licenses and permits 5,272,149 5,621,613 5,885,657 6,229,497 6,361,953 Fines and forfeitures 1,044,648 1,138,891 996,799 978,626 834,200 Charges for services 1,154,843 1,285,045 1,401,345 1,291,321 1,974,016
Intergovernmental 1,187,485 872,652 791,316 4,179,592 1,899,080
Miscellaneous/interest earnings 747,304 977,123 781,035 1,000,276 1,068,804
Contributions 368,500 - - - -
- - - - - Total Revenues 20,163,599$ 20,309,349$ 20,674,928$ 25,025,786$ 25,053,933$
ExpendituresGeneral government 3,704,832$ 4,028,393$ 3,712,733$ 3,406,445$ 4,759,360$ Public safety 6,630,196 7,833,279 7,990,705 7,921,809 8,379,644 Public works 1,344,015 1,487,619 1,394,286 1,515,323 1,594,271 Parks, recreation and tourism 3,391,470 3,647,665 4,022,934 4,085,589 3,043,122 Capital outlay 6,269,988 13,260,678 1,790,360 45,762,352 18,736,157 Debt service:
Capital lease payments 747,764 897,952 929,907 3,991,122 619,864
Interest and fiscal charges 179,035 164,947 155,047 1,712,670 3,217,755
Principal Retirements - - - 12,573,657 - Bond Issuance Costs - - - 1,495,554 - Total Expenditures 22,267,300$ 31,320,533$ 19,995,972$ 82,464,521$ 40,350,173$
Excess (deficiency) of revenues over (under) expenditures (2,103,701)$ (11,011,184)$ 678,956$ (57,438,735)$ (15,296,240)$
Other financing sources (uses)Proceeds on sale of capital assets 26,191$ -$ -$ -$ -$ Inception of capital lease obligation 312,249 887,594 880,655 473,983 432,308
Issuance of bonds - 9,738,217 428,120 71,882,320 (a)-
Insurnace proceeds - - - 178,260 -
Transfers in 3,253,841 23,350,453 1,397,258 10,699,613 4,538,136
Transfers out (2,874,993) (22,835,560) (856,315) (9,161,045) (3,844,885) Total other financing sources (uses)717,288$ 11,140,704$ 1,849,718$ 74,073,131$ 1,125,559$
Net change in fund balance (1,386,413)$ 129,520$ 2,528,674$ 16,634,396$ (14,170,681)$
Debt service as a percentage of noncapital expenditures 5.77%6.42%7.03%24.36%9.80%
(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
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 (b) 2016 79,819,959 1,628,796,572 26,336,665 199,378,794 106,156,624 1,828,175,366 70.50
2018 2017 82,341,248 1,680,245,695 27,375,296 207,241,635 109,716,544 1,887,487,330 73.50
(b) Reassessment year, see Table VI
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 law that
provided for the billing and collection of personal property taxes on motor vehicles on a staggered basis according to expiration of the license tag.
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
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
2018 2017 73.50 -73.50 64.60 3.90 68.50 137.30 28.70 166.00 308.00
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 $1,000 of assessed valuation
Tax Rate Limits:None Taxes Due: Personal: In the month preceding tag renewal by the S.C. State Highway Department
Real and Merchants: April 30thPersonal: N/A--Taxes on personal property paid in advance
Taxes Delinquent:Real and Merchants: May 1st
Discount Allowed: None Penalties: Real and Merchants: 15%
Reassessment Years:Tax Years 2011, 2016
Uncollected taxes are turned over to the City Delinquent Tax Collector on June 1st, with authority to enforce collection by tax sale.
(a) Because of the change mandated by State law noted in the footnote of Table V, the City of North Augusta uses different tax years for real and personal property taxes.
City of North Augusta, South CarolinaDirect and Overlapping Property Tax Rates
Last Ten Fiscal Years
City of North Augusta
Overlapping Property Tax Rates
County of Aiken Aiken County School District
93
2018 2009
Taxpayer Type of Business
Assessed
Valuation Rank
Percentage of Total Assessed
Valuation
Assessed
Valuation Rank
Percentage of Total Assessed
Valuation
S. C. Electric & Gas Co.Utility 3,467,500$ 1 3.16%1,952,460$ 1 2.66%
Allnex Industries, Inc. (a)Manufacturing 2,702,970 2 2.46%1,907,140 2 2.60%
Wal-Mart, Inc.Retail Shopping 2,421,283 3 2.21%754,490 6 1.03%
SRP Federal Credit Union Banking/Credit Union 1,181,710 4 1.08%
SUSO 3 Augusta, LP Real Estate 1,111,260 5 1.01%
Halocarbon Chemicals, Inc. Manufacturing 1,003,940 6 0.92%913,840 5 1.25%
CVS SC Distribution, Inc.Warehousing/Distribution 733,160 7 0.67%724,480 7 0.99%
The Kroger Company Grocery Store 644,160 8 0.59%
Lowes Home Centers, Inc.Retail Building Supplies 594,072 9 0.54%447,520 10 0.61%
Trailer Train-Hamburg Industries Manufacturing 555,950 10 0.51%
Bell South Telecommunications Communication 1,033,590 4 1.41%
North Augusta Plaza SC, LLC Real Estate 1,036,660 3 1.41%
Cutwater Inc & Nomad Investments Real Estate 468,430 9 0.64%
Breckenridge Villas Apartments 528,190 8 0.72%
TOTAL Taxable Assessed 14,416,005$ 13.15%9,766,800$ 13.32%
(a) Allnex formerly Cytec formerly Surface Specialties
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 2018 (tax year 2017) 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%.
City of North Augusta, South CarolinaPrincipal Property Taxpayers
Current Year and Nine Years Ago
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
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%33,018 5,774,998 99.85%
2011 2010 5,924,149 5,883,727 99.32% 29,224 5,912,951 99.81%
2012 (c) 2011 6,377,793 6,344,561 99.48% 11,953 6,356,514 99.67%
2013 2012 6,488,677 6,446,489 99.35%21,397 6,467,886 99.68%
2014 2013 6,597,073 6,565,216 99.52%12,362 6,577,578 99.70%
2015 2014 6,804,705 6,762,260 99.38%18,741 6,781,001 99.65%
2016 2015 7,026,901 6,992,988 99.52%7,676 7,000,664 99.63%
2017 (c) 2016 7,484,042 7,446,013 99.49%5,716 7,451,729 99.57%
2018 2017 8,064,166 8,018,222 99.43%8,018,222 99.43%
(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 CarolinaProperty Tax Levies and Collections
Last 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
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
2018 6,007,529 1,355,936,169 2,420
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
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
2018 8,775 777 9,552 2,950 158 3,108 12,660
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
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
2018 10,397 638 11,035 980 31 1,011 12,046
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
City of North Augusta Municipal Government 1 68,677,900 2 46,253,000
Halocarbon Chemicals, Inc.Manufacturing 2 51,237,700 3 45,802,700
Allnex Industries, Inc.Manufacturing 3 40,467,800 4 23,931,600 (a)
Aiken County Schools School District 4 14,062,100 6 10,184,900
JARS at Breckenridge/Plaza Terrace Apartments 5 12,815,100 5 12,176,100
Gentry's Mobile Home Park Mobile Home Park 6 7,559,100 7 7,482,800
Pinecrest Apartments Apartments 7 6,686,000
The Housing Authority Apartments 8 6,187,300 8 7,444,100
CIG Plaza Place LLC Apartments 9 5,368,800 10 5,885,000 (b)
Lulu's Car Wash Automated Car Wash 10 5,080,000
Breezy Hill Water & Sewer Authority Water District Provider 1 233,913,600
UniHealth Post Acute Care Nursing Home Facility 9 6,365,300
Wastewater Customers
Customer Name Type of Business Rank Water Usage Rank Water Usage
Edgefield County Water & Sewer Authority Sewer District Provider 1 733,957,000 1 503,191,000
City of North Augusta Municipal Government 2 55,318,971 9 6,243,000
Halocarbon Chemicals, Inc.Manufacturing 3 51,237,700 2 45,802,700
Allnex Industries, Inc.Manufacturing 4 40,337,447 3 12,657,300 (a)
JARS at Breckenridge/Plaza Terrace Apartments 5 13,247,867 4 10,229,100
Aiken County Schools School District 6 10,840,350 5 8,566,000
Gentry's Mobile Home Park Mobile Home Park 7 8,623,597
National Healthcare Nursing Home Facility 8 7,372,403
The Housing Authority Apartments 9 7,052,000 8 6,397,500
CIG Plaza Place LLC Apartments 10 6,617,550 7 6,759,900 (b)
UniHealth Post Acute Care Nursing Home Facility 6 8,546,700
The Groves Apartments, LLC Apartments 10 5,568,200
Note: Consumption is measured in gallons
(a) Allnex formerly Cytec formerly Surface Specialties
(b) CIG Plaza Place LLC formerlly Plaza Place Apartments, LLC
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
2018 Annual Consumption 2009 Annual Consumption
2018 Annual Consumption 2009 Annual Consumption
98
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
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
2018 - 1,887,487,330 0.00%23,444 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 2018 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.
99
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
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)
2018 - 69,475,000 - 1,174,089 19,877,539 862,405 - 91,389,033 23,444 3,898.18
(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 $25,000 tax increment revenue bond.
City of North Augusta, South Carolina
Ratio of Outstanding Debt by TypeLast Ten Fiscal Years
Governmental Activities Business-Type Activities
100
Jurisdiction
Debt Outstanding @
December 31, 2018
Percent Applicable to City of
North Augusta
Amount Applicable to City of
North AugustaDirect Debt
City of North Augusta *70,649,089$ 100.00%70,649,089$
Overlapping Debt
County of Aiken 41,871,941$ 14.98%6,272,417$
Aiken County School District 162,115,000 14.98%24,284,827
Sub-total - Overlapping Debt 203,986,941$ 14.98%30,557,244$
Total 274,636,030$ 101,206,333$
* 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
City of North Augusta, South Carolina
Direct and Overlapping Governmental Activities Debt
As of December 31, 2018
assessed value to Aiken County's total taxable assessed value.
Source: Aiken County and Aiken County School District
101
2009 2010 2011 2012 2013
Debt Limit 5,864,466$ 5,993,158$ 6,139,015$ 6,875,400$ 6,994,935$
Total net debt applicable to limit 4,239,853 *3,964,448 3,684,043 *3,393,638 *-
Legal debt margin 1,624,613$ 2,028,710$ 2,454,972$ 3,481,762$ 6,994,935$
Total net debt applicable to the limit
as a percentage of debt limit 72.30%66.15%60.01%49.36%0.00%
2014 2015 2016 2017 2018
Debt Limit 7,111,789$ 7,335,620$ 7,575,153$ 8,492,530$ 8,777,324$
Total net debt applicable to limit - - - - -
Legal debt margin 7,111,789$ 7,335,620$ 7,575,153$ 8,492,530$ 8,777,324$
Total net debt applicable to the limit
as a percentage of debt limit 0.00%0.00%0.00%0.00%0.00%
Last Ten Fiscal Years
* General Obligation Bonds issued in 2006
Note: The 2006 General Obligation Bonds were defeased in December of 2013 removing the City's financial obligation.
Legal Debt Margin Information
City of North Augusta, South Carolina
Fiscal Year
Fiscal Year
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
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
2018 10,252,770 8,448,992 1,803,778 1,139,805 219,034 1,358,839 1.33
NOTE:Revenuebond coveragerequirements are defined in the City's RevenueBondOrdinance by the City's BondCounsel,Pope Flynn LLC,Attorneys and
Counselors atLaw,locatedin Columbia,SouthCarolina.Coverage iscalculated by dividing theannualnetrevenueavailable for debt service by theaverage
annual requirements for principal and intereston all debt outstandingandpayable from revenuesof the system.Annualnetrevenueavailable for debt serviceis
defined asthe total operating revenues (non-operatingrevenue orinterest revenue is not included)less total operating 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
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 167,458 6,535,813 39,030 4.8%
2017 168,179 6,837,409 40,656 4.1%
Source: South Carolina Employment Security Commission
Development Department.
Year
1940 2,629 49,91619503,659 53,137
1960 10,348 81,038
1970 12,883 91,023
1980 13,593 105,625
1990 15,684 120,940
2000 17,574 142,780
2010 21,348 160,099
2011 21,419 160,682
2012 21,703 162,812
2013 21,885 164,176
2014 22,048 164,753201522,568 165,829201622,932 167,458201723,275 168,179
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 2018.
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 2011-2018 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 11,626 1 16.27%11,439 1 16.22%
Aiken County Public Schools In / Out School District 3,350 2 4.69%3,390 2 4.81%
Bridgestone Americas (2)Out Passenger/Light Truck Tires and Large/Ultra Large Tires 2,269 3 3.17%930 5 1.32%
Kimberly-Clark Corp.Out Consumer Paper Products 1,200 4 1.68%1,475 3 2.09%
Aiken Regional Medical Center Out Hospital 1,070 5 1.50%991 4 1.41%
Aiken County Government Out County Government 975 6 1.36%899 6 1.27%
Advanced Glassfiber Yarn Out Fiberglass Insulation and Circuit Boards 660 7 0.92%775 7 1.10%
UPS Customhouse Brokerage Out International Customhouse Brokerage 610 8 0.85%514 9 0.73%
University of South Carolina-Aiken Out Higher Education 606 9 0.85%
Shaw Industries Out Fibers Manufacturing 600 10 0.84%527 8 0.75%
Walmart-North Augusta In Retail 585 11 0.82%Crane Merchandising Systems Out Vending Machines 480 12 0.67%
City of Aiken Out Municipal Government 404 13 0.57%431 11 0.61%
ASCO Valve, Inc.Out Solenoid Valve Technology 400 14 0.56%285 13 0.40%
Tri Development Center of Aiken Out Non-Profit Service Agency 370 15 0.52%
CVS Distribution Center Out Supply Chain Management/Distribution Center for CVS Pharmacy locations 350 16 0.49%Hubbell Power Systems Out High Voltage Insulators and Arrestors 328 17 0.46%340 12 0.48%
Autoneum North America, Inc.Out Thermal & Acoustical Management 300 18 0.42%
MTU America Inc.Out Off Road Diesel Engines and Components 275 19 0.38%
City of North Augusta In Municipal Government 243 20 0.34%217 17 0.31%
Westinghouse Safety Management Solutions Out Engineering Consulting Firm 500 10 0.71%
The Calstar Group (b)Out Speciality Tires and Wheels 280 14 0.40%
BAE Systems Out Machine Parts - Track Vehicles 277 15 0.39%
Glaxo Smith Kline Out Proprietary Drugs 252 16 0.36%
PACTIV Corp.Out Plastic Food Service Plates 208 18 0.29%
Newman Technology SC, Inc Out Automotive/ATV Exhaust and Suspension 169 19 0.24%R.E. Phelon, Inc.Out Aluminum Die Casting 141 20 0.20%
Location: In city limits, Out of city limits
* not in business at this time
** information not available
(1) SRNS/SRR, including subcontractors 7,798 (2) Bridgestone America's Tire Operations, LLC 1,884
and temporary construction workers Bridgestone America's Off Road Radial Tires 385
Shaw Areva Mox Services 2,026 2,269
Centerra 681
Parsons 482
Department of Energy 345
US Forestry Service 109
Savannah River Ecology Lab 68
Other Subcontractors 117
11,626
with less than 6% scattered in other areas.
County # of workers %
Aiken County, South Carolina 4,492 57.60%
Columbia County, Georgia 1,245 15.97%
Richmond County, Georgia 878 11.26%
Barnwell County, South Carolina 460 5.90%
Edgefield County, South Carolina 226 2.90%
Orangeburg County, South Carolina 138 1.77%
Bamberg County, South Carolina 88 1.13%
Lexington County, South Carolina 83 1.06%
Allendale County, South Carolina 36 0.46%
Other 152 1.95%
7,798 100.00%
(a) Formerly Wackenhut(b) Formerly Carlisle Tire and Wheel Company
City of North Augusta, South Carolina
Principal 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
2018 2009
105
Fund / Function / Department 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
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 3.0 3.0 3.0 3.0 1.0 1.0 1.0
Information Technology 0.0 0.0 0.0 0.0 0.0 0.0 0.0 1.5 (a)1.5 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 4.5 4.5 4.5 5.5 5.5 4.0 4.0 4.0
Human Resources 0.0 0.0 0.0 0.0 0.0 0.0 0.0 2.0 (b)2.0 2.0
Building Standards 5.0 4.0 3.0 3.5 3.5 3.5 4.5 4.5 4.5 4.5
Planning and Development 5.0 4.0 3.0 2.0 2.0 2.0 2.0 2.0 2.5 2.5
Property Maintenance 13.0 13.0 13.0 13.0 12.0 12.0 13.0 14.0 14.0 14.0
Public Safety 72.0 72.0 76.5 76.5 77.0 79.0 84.0 88.0 90.0 90.0
Public Works
Engineering 2.5 2.5 1.5 1.5 1.5 1.5 1.5 2.5 2.5 2.5
Streets & Drains 9.0 9.0 9.0 9.0 9.0 9.5 10.0 10.0 10.0 10.0
Parks, Recreation & Tourism
Recreation 6.0 5.0 5.0 5.0 5.0 4.0 5.0 5.0 4.0 4.0
Parks 4.0 4.0 4.0 4.0 5.0 5.0 5.0 5.0 5.0 5.0
Community Center 3.0 2.0 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 3.0 3.0 3.0
RVP Activities 6.0 6.0 6.0 6.0 6.0 6.0 6.0 6.0 7.0 7.0
Sub-total 134.5 130.5 131.5 132.0 132.5 135.0 143.5 152.5 155.0 155.0
Stormwater Fund
Stormwater 6.0 6.0 6.0 5.5 5.5 5.0 4.5 5.5 5.0 5.0
Sub-total 6.0 6.0 6.0 5.5 5.5 5.0 4.5 5.5 5.0 5.0
Riverfront Central Core Dev. Fund
Tourism 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 1.0 (d)1.0
Sub-total 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 1.0 1.0
Sanitation Fund
Public Works
Information Technology 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.5 (c)0.5 0.5
Sanitation 26.5 26.0 26.0 25.5 26.0 26.0 26.0 25.5 26.5 26.5
Material Recovery Center 7.5 7.5 7.5 7.5 7.5 8.5 8.5 8.5 8.5 8.5
Sub-total 34.0 33.5 33.5 33.0 33.5 34.5 34.5 34.5 35.5 35.5
Water & Wastewater Fund
Public Utilities
Information Technology 0.0 0.0 0.0 0.0 0.0 0.0 0.0 2.0 (a)2.0 2.0
Utilities Finance 4.0 4.0 4.0 5.0 5.0 5.0 5.0 4.0 5.0 5.0
Utilities Administration 7.5 8.0 7.5 7.5 7.5 7.5 7.5 7.5 7.5 7.5
Water Operations 9.0 9.0 8.0 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 38.5 39.0 37.5 38.5 38.5 38.5 38.5 39.5 40.5 40.5
TOTAL 213.0 209.0 208.5 209.0 210.0 213.0 221.0 232.0 237.0 237.0
(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 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
General Government
Size of City (square miles)20.676 20.723 20.769 20.778 20.989 21.019 21.150 21.172 21.177 21.180
Annexations approved by City Council 3 4 4 7 5 5 - 2 1 1
Building permits issued 684 815 627 604 622 660 648 668 689 703
Plumbing permits issued 283 349 341 291 340 310 373 381 296 358
Mechanical permits issued 333 467 323 345 391 433 417 520 455 494
Electrical permits issued 335 443 411 349 422 431 434 482 813 618
Business licenses issued 1,746 1,803 1,756 1,750 1,760 1,861 1,849 1,877 2,017 2,420
Police
Total calls for service 46,956 50,349 50,356 42,632 41,058 38,973 40,567 37,929 37,322 38,112
Criminal arrests 2,405 2,024 1,800 1,841 1,377 1,360 1,766 1,572 1,338 885
Incident reports (police action required)3,051 3,277 3,228 3,557 3,377 3,399 3,627 3,888 3,966 3,797
Accident reports (collisions)1,105 1,068 1,041 1,007 960 1,012 1,190 1,187 1,267 1,390
Traffic offenses (resulting in fine)5,224 6,590 8,652 8,698 8,780 8,785 8,809 7,933 8,261 8,490
Drug offenses 145 260 231 136 203 157 177 210 372 214
Burglaries reported 385 408 333 218 117 108 97 132 93 94
Fire
Actual fire calls - Inside City 276 192 150 105 130 145 114 105 83 377
Actual fire calls - Outside City 25 13 23 21 17 12 7 31 32 56
Solid Waste
Garbage Refuse Collected (tons) - Residential 10,606 10,618 10,402 9,011 9,079 9,143 10,227 9,334 9,554 9,473
Garbage Refuse Collected (tons) - Commercial 6,494 6,049 6,625 6,874 4,992 5,037 4,723 5,502 6,082 5,647
Recyclables Collected (tons)2,804 3,055 5,617 4,839 5,326 5,313 6,656 5,047 5,437 5,507
Property Maintenance
Tree trimming hours 185 198 260 287 254 275 1,378 3,516 1,338 2,050
Mowing hours 12,200 12,800 13,250 12,970 12,960 12,976 10,944 12,892 14,036 10,368
Planting hours 5,400 5,500 5,600 5,760 5,565 4,628 1,726 1,388 1,145 1,504
Streets and Drains
Pothole patching / asphalt tons 236 191 254 388 476 409 341 464 142 132
Curb, gutter & sidewalk repair / CY 152 199 324 290 285 378 472 292 400 294
Storm drain inlets cleaned 221 224 307 330 325 282 419 619 848 664
Street sweeping / miles 2,139 2,168 2,670 2,393 2,727 977 1,339 822 574 563
Parks and Recreation
Baseball / Number of Players 747 786 784 788 735 789 779 687 592 576
Youth Softball / Number of Players 292 261 270 262 248 259 238 234 240 221
Spring Soccer / Number of Players 566 513 527 540 528 511 484 532 585 580
Fall Soccer / Number of Players 522 504 511 534 474 473 552 552 493 540
Youth Basketball / Number of Players 554 581 595 600 549 680 640 615 652 577
Youth Football / Number of Players 358 346 313 309 310 281 280 239 219 267
Youth Cheerleading / Number of Participants 128 153 165 115 118 96 113 117 182 164
Youth Volleyball / Number of Participants 86 89 91 61 105 83 94 73 86 82
Water
New water services 52 103 101 43 33 77 77 184 130 128
Water lines installed / L.F.13,221 3,766 4,662 2,857 5,609 2,068 2,599 913 780 1,094
Water line leaks repaired 15 17 12 24 29 34 23 27 16 19
Average daily water pumped 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 3,462,000
Daily peak demand (gallons per day)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 5,977,000
Peak day 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 9/7/2018
Wastewater
New sewer taps 83 140 122 97 117 135 158 212 154 197
Wastewater lines installed / L.F.2,901 0 1,425 160 1,379 508 1,970 1,259 6,208 8,423
Wastewater lines repaired / L.F.38 54 64 65 33 62 680 556 252 16
Wastewater lines cleaned / L.F.39,468 67,029 57,810 87,648 73,232 93,859 70,610 57,320 34,516 49,432
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 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Public Safety
Number of Stations 2 2 2 2 2 2 3 3 3 3
Number of Public Safety Officers 52 55 55 55 55 58 61 62 64 65
Number of Volunteer Firemen 20 20 20 20 20 20 20 20 25 20
Insurance Rating (ISO)Class 3 Class 3 Class 3 Class 3 Class 3 Class 3 Class 2 Class 2 Class 2 Class 2
Signalized Intersections 26 26 30 30 30 30 31 31 32 32
Number of Fire Hydrants
Inside City 781 792 795 802 805 809 812 814 816 848
Outside City 149 149 149 149 149 149 149 149 149 149
Public Works
Miles of Streets 137.05 137.77 138.81 140.09 140.85 141.37 141.91 143.77 144.2 144.9
Street Lights 1,740 1,750 1,763 1,789 1,789 1,800 1,817 1,841 1,859 1,980
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 14.0 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 9 9 9 9 9
Baseball / Softball Diamonds 9 9 10 10 10 10 10 10 10 10
Football / Lions Field 2 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 11 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 194.00 194.78 195.15 195.27 196.01 196.08 228.68 229.07 229.84 231.09
Maximum Pumping Capacity 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 12,000,000
(gallons per day)
Sewer
Miles of Wastewater Lines 226.63 227.46 227.72 228.03 228.54 228.57 229.20 229.57 230.74 232
Stormwater
Miles of Storm Sewer 57.28 57.77 58.22 59.29 59.79 60.37 60.73 68.01 68.47 69.21
(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 Carolina
Capital Asset Statistics by Function / Program
Last 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
$0.87 $2.28 $3.15 $1.49 $2.32 $3.81
All Additional Usage 0.70 1.81 2.51 0.70 1.81 2.51
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 month
Multi-family Charge (Inside City only)$3.75 per month per unit
Non-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, 2018
Residential (monthly)
Volume Charge (per cubic yard)
Stormwater Management Service Charges in effect December 31, 2018
City of North Augusta, South Carolina
Enterprise Funds Rates and Charges
Rates / Charges in effect December 31, 2018
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, 2018
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, 2018
Volume Rates / Outside City Limits
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1/1/2013
1/1/2009
1/1/2018
1/1/2017
7/1/2010
7/1/2009
1/1/2009
7/1/2008
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
1/1/2015
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 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 $.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)
O & M Volume Rate increased by $.25 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, 2018
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%
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
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