Loading...
051820 Virtual Study Session Mins Adopted North Au gustox/ x South Carolina'S Rivafront MINUTES OF MAY 18.2020 Robert A. Pettit, Mayor J Robert Brooks, Councilmember Pat C. Carpenter, Councilmember Fletcher L. Dickert, Councilmember David W. McGhee, Councilmember Eric K Presnel( Councilmember Kevin W Toole, Councilmember ORDER OF BUSINESS CVIRTUAL STUDY SESSION The virtual study session for the City Council meeting of the City of North Augusta of May 18, 2020, having been duly publicized, was called to order by Mayor Pettit at 6:00 p.m. using GoToMeeting online conferencing software and streamed online for public viewing at the City Facebook page: "City of North Augusta—Public Information" and City YouTube page: "City of North Augusta Public Information" and adjourned at 6:59 p.m. Per Section 304-80(e) notice of the meetings was sent out by email to the current maintained "Agenda Mailout" list consisting of news media outlets and individuals or companies requesting notification. Notice of the meetings was also posted on the outside doors of the Municipal Center, the main bulletin board of the Municipal Center located on the first floor, and the City of North Augusta website. _ Members present were Mayor Pettit, Councilmembers Brooks, Carpenter, Dickert, McGhee, Presnell, and Toole. Also in attendance were Rachelle Moody, Interim City Administrator; Kelly F. Zier, City Attorney;Cammie T.Hayes,Director of Finance and General Services; Lillian E.(Libby)Hodges, Director of Planning and Development; J.D. McCauley, Manager of Human Resources; Ricky Jones, Manager of Information Technology and Sharon Lamar, City Clerk. The members of the public and the media were provided access to the meeting via live-streaming video. ITEM 1 CITY COUNCIL AGENDA: Items on the May 18, 2020 Council Agenda-Council Discussion Minutes of Study Session of May 18,2020 C Interim City Administrator, Rachelle Moody, led Council's discussion of the May 18, 2020 meeting agenda. ITEM 2 ECONOMIC DEVELOPMENT: Riverside Village at Hammond's Ferry - Council Update Cammie Hayes,Director of Finance and General Services, shared a quarterly update with Council on the financial status of the Riverside Village at Hammond's Ferry project. This voluntary financial quarterly update is also posted on the EMMA portal and will be updated after the June 1 Audit review. The COV ID-19 outbreak has created many unknown and unplanned circumstances. She explained the City is conducting regular discussions with bond counselors,the developer,etc. The City's bond payment obligation of May 15, 2020 was paid with accumulated revenues from sources designated in the budget for bond payments. Please see ATTACHMENT #2 for information that Ms. Hayes discussed. ITEM 3 ADMINISTRATION: Small Business Program Proposal — Presentation to Council Rachelle Moody,Interim City Administrator,presented to Council a proposal for a Small Business Program. She suggested Council re-allocate currently budgeted Fagade Improvement funds to a Small Business Program micro grant. Please see ATTACHMENT #3 for a draft of the proposal. There was general support of Council to focus these funds to locally owned, "Mom and Pop" businesses. Ms. Moody will prepare the proposal for Council's review and approval at the June C 1,2020 meeting. ITEM4. FINANCE• Utility Payments during COVID-19—Council Update Cammie Hayes, Director of Finance and General Services, updated Council on utility payments during the COVID-19 pandemic. She reported the South Carolina Office of Regulatory Staff announced on May 13, 2020 Governor McMaster has requested that cities term to normal business operations and no longer practice the suspension of disconnections. The City of North Augusta will resume utility cutoffs for non-payment on Tuesday, July 7, 2020. Automated calls will be used to remind customers to start making payments now. There is a payment plan option in place for qualifying residents and there are local organizations available to aid those in need of assistance. APPROVED THIS & DAY OF Respectfully submitted, 2020. Sharon Lamar Robert A. Pettit,Nfayor City Clerk O ATTACHMENT#2 Continuing Disclosure Requirements North Augusta Public Facilities Corporation/City of North Augusta Series 20178 CVoluntary Filing for the Fiscal Quarter Ended March 31, 2020 Assessed Value of Taxable Property The assessed value of all taxable real and personal property in the City for each of the last five years available is set forth in the following table(record will be updated with the 2019 audit): Assessed Value of Taxable Property Fiscal Year Ended Tax Personal December3l Year Real Property Property(t) Total 2018 2017 $ 82,341,248 $ 27,375,296 $ 109,716,544 2017 2016 79,819,959 26,336,665 106,156,624 2016 2015 73,065,987 21,623,421 94,689,408 2015 2014 70,710,810 20,984,447 91,695,257 2014 2013 69,161,813 19,735,545 88,897,358 I'I Due to a law passed in 1980 by the S.C.General Assembly 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,the City uses different tax years for real and personal property taxes. CTax Rates The millage imposed in the City in each of the last five tax years is set forth below: Tax Rates Fiscal Year Ended Tax Operating Debt Service Total City December3l Yearul Millage Millage Millage 2020 2019 73.50 - 73.50 2019 . 2018 73.50 - 73.50 2018 2017 73.50 - 73.50 2017 2016 70.50 - - 70.50 2016 2015 74.21 - 74.21 I'I Due to a law passed in 1980bythe S.C.General Assemblythat provided forthe billing and collection of personal propertytaxes on motorvehicles on a staggered basis according to expiration of the license tag,the City uses different tax years for real and personal property taxes. C (continued) City General Fund Budget The General Fund Budget for the fiscal year ending December 31,2020 was adopted on December 2,2019 by City CCouncil and is shown in the following table: Annual General Fund Budget for Fiscal Year Ending 17/31/20 Revenues Ad valorem property taxes $ 7,498,967 Licenses and Permits 6,351,000 Fines and forfeitures 1,120,000 Charges for se wices 1,371,963 Intergovernmental 750,648 Miscellaneous 713,323 Transfers 1,308,967 Total Revenues $ 19,114,868 Expenditures General Gove rnment $ 5,711,790 Public Safety 8,843,667 Public Works 1,650,089 Parks, Recreation and Tourism 2,909,322 Total Expenditures $ 19,114,868 CTen Largest Taxpayers in the City The ten largest taxpayers in the City,the assessed value for the fiscal year ended December 31,2018 of the taxable property of each located within the City,and the amount of 2018 taxes paid to the City are as follows(record will be updated with the 2019 audit): Ten Largest Taxpayers in the City 12/31/2018 Taxpayer Assessed Value Taxes Paid S.C. Electric&Gas Co. $ 3,467,500 $ 254,861 Allnex Industries,Inc. 2,702,970 198,668 Wal-Mart, Inc. 2,421,283 177,964 SRP Federal Credit Union 1,181,710 86,856 SUS03 Augusta,LP 1,111,260 81,678 Halocarbon Chemicals, Inc. 1,003,940 73,790 CVS SC Distribution, Inc. 733,160 53,887 The Kroger Company 644,160 47,346 Lowes Home Centers,Inc. 594,072 43,664 Trailer Train-Hamburg Industries 555,950 40,862 (continued) Tax Collection Record of the City The following table shows the amount of taxes levied for City purposes, including additions and abatements,taxes collected as of December 31 of the year following the year in which the levy was made,and the amount of delinquent taxes collected in the City for the fiscal years shown(record will be updated with the 2019 audit): Tax Collection Record of the City Collected within the Fiscal Year of the Levy Total Collections to Date Fiscal Year Ended Taxes Levied Percentage Collections in Percentage December 31 TaxYear"' for Fiscal Year Amount of Levy Subsequent Years Amount of Lev 2018 2017 $ 8,064,166 $ 8,018,222 99.43% $ - $ 8,018,222 99.43% 2017 2016 7,484,042 7,446,013 99.49% 5,716 7,451,729 99.579A 2016 2015 7,026,901 6,992,988 99.52% 7,676 7,000,664 99.63% 2015 2014 6,804,705 6,762,260 99.38% 18,741 6,781,001 99.65% 2014 2013 6,597,073 6,565,216 99.52% 12,362 6,577,578 99.70% Due to a law passed in 1980 by the S.C.General Assembly that provided forthe billing and collection of personal property taxes on motor vehicles on a staggered basis according to expiration of the license tag,the City uses different tax years for real and personal property taxes. Outstanding Indebtedness Outstanding Indebtedness 12/31/2018 C General Obligation Debt $ - Tax Increment Debt 43,437,000 Includes Series 2017A Bonds-see note below Outstanding Installment Purchase Revenue Bonds 69,450,000 Series 20178 Bonds-see note below Outstanding Lease Purchase Obligations 2019 936,168 2020 577,629 2021 392,885 2022 216,473 Subtotal 2,123,155 Interest (86,661) Present Value of minimum lease payments 2,036,494 Revenue Debt Waterand Wastewater Bonds,Series 2014A 10,862,087 Matures February 1, 2035 Water and Wastewater Bonds,Series 2015A 9,015,452 Matures December 1, 2036 -The North Augusta Public Facilities Corporation purchased the City's 2017A TIF Obligation($43,412,000 outstanding as of 12/31/2018)pursuant to which the City makes semi-annual payments to the Corporation from TIF Revenues.These payments are assigned to the Trustee for the Series 20178 Bonds and provide a credit against installment payments due in each year. The City's legal debt margin as of 12/31/2018 equaled$8,777,324.This record will be updated with the 2019 audit. (continued) Identified Sources of Installment Payments General obligation Bonds The City is authorized by the State Constitution to incur general obligation indebtedness without voter approval in an amount not exceeding eight percent of the assessed value of all taxable property in the City for any corporate purpose of the municipality.As of 3/31/20 the City's entire eight percent capacity is available. On November 6, 2018,a favorable bond referendum was held in the City of North Augusta authorizing the City to issue not exceeding$10,250,000 of general obligation bonds as part of a favorable Capital Projects Sales Tax referendum. These bonds were issued in 2020 to construct and equip a public safety headquarters and bond payments will be made from revenues collected from the capital projects sales tax. General Obligation Bonds Fiscal Year Amount 2020111 $10,250,000 2019M 2018 2017 2016 111 UNAUDITED Local Hospitality Taxes City Council, pursuant to the Local Hospitality Tax Act and the Hospitality Tax Ordinance, established a uniform hospitality tax,which imposed,effective December 1, 1998,a one percent(1%)tax on the sales of prepared meals and beverages,including alcoholic beverages,beer and wine,at businesses within the City. Effective December 1,2017,the hospitality tax rate was raised to the maximum of two percent(2%)with collections beginning in January 2018. Local Hospitality Taxes Increase in City Collections Hospitality over Prior Fiscal Year Taxes Fiscal Year 20201st Qtr $ 427,535 N/A 2019u) 1,788,174 11.13% 2018 1,609,103 118.67 2017 735,845 3.18 2016 713,152 7.27 2015 664,804 9.68 2014 606,121 5.86 1�1 UNAUDITED (continued) Local Accommodations Taxes City Council, pursuant to the Local Accommodations Tax Act and the Accommodations Tax Ordinance established a local accommodations tax,which imposed,effective December 1, 1998,a three percent(3%)tax on furnishing of accommodations to transients within the City. Local Accommodations Taxes Increase (Decrease)in City Collections Accommodations over Prior Fiscal Year Taxes Fiscal Year 20201st Otral $ 30,721 N/A 20191i1 229,047 109.96% 2018 109,092 98.70 2017 54,904 7.86 2016 50,904 3.68 2015 49,099 (11.39) 2014 55,410 9.88 lil UNAUDITED Tax Increment Revenues The TIF Act authorizes municipalities to incur indebtedness for the purpose of redevelopment in areas which are or which are threatened to become blighted and to fund the debt service of such indebtedness from the additional tax revenues which result from such redevelopment. Under the TIF Act,all property taxes of all taxing jurisdictions imposed and collected within the Redevelopment Project Area in excess of the amount attributable to the"total initial equalized assessed value"of all taxable real property in the Redevelopment Project Area shall be paid to the municipality which shall deposit the taxes into a special tax allocation fund for the purpose of paying redevelopment project costs and discharging the obligations incurred in the payment of such costs. Certain portions of the taxes deposited to or otherwise subject to deposit to the special tax allocation fund are disbursed to overlapping taxing entities in accordance with agreements between the City and political subdivisions pursuant to which they agreed to participate in the TIF on a modified basis.As of 3/31/20,no funds had been disbursed to overlapping taxing entities. Tax Increment Revenues Fiscal Year City TIF Revenues %Growth 20201st Qtr nl $ 1,328,868 N/A 20191'1 804,991 75/ 2018 751,052 22 2017 613,831 19 2016 516,829 14 2015 453,883 9 2014 417,373 N/A 1i1 UNAUDITED C (continued) MID Assessments The municipal improvement district(MID District)consists of certain parcels owned by the private developers within the TIF District where private improvements will be constructed. The City has imposed a special assessment on the parcels in the MID District owned by the private developers. The special assessment has been set on an annual basis at an amount equal to an estimate of the TIF revenues that will result from the private improvement specified in the Master Development Agreement. 2020 is the first year the special assessments were billed and payable. These assessments are due to the City no later than May 1 in the year the special assessments are billed to avoid penalty. As of May 1, 2020,MID special assessment receipts were as shown in the table below. Penalties have been assessed on all outstanding MID special assessments. MID Assessments Fiscal Year Ended MID MID December3l Tax Year Assessments Receipts 20201st qtr t 2019 $ 1,183,327 $ 364,548 nl UNAUDITED Parking Revenues Parking revenues are received from certain parking facilities owned or operated by the City including the Medac Deck, Hotel Deck and various lots owned by the City. Revenues received are netted against expenditures incurred for operations and maintenance of the parking facilities. Parking Revenues Net % Fiscal Year Amount Growth 20201st qtr ltl $ 8,218 N/A C 2019(1) 128,499 18% 2018 108,885 N/A Itl UNAUDITED Stadium Revenues Stadium revenues are received from Greenlackets Baseball for performance license fees, retail space rent, corporate naming rights,and stadium rent. As of the date of this disclosure,Greenlackets Baseball is currently under suspension of play.Admissions tax payments are received from the South Carolina Department of Revenue(SCDOR). Stadium Revenues Performance Corporate Admissions License Fees Retail Space Naming Fiscal Year Tax(5) (2) Rent(3) Rights l41 Rent 131 Total 20201st Qtr l'I $ 11,377 $ 74,894 $ - $ - $ - $ 86,271 20191' 71,244 64,884 300,000 100,000 250,000 586,128 2018 18,336 - 100,000 100,000 250,000 468,336 Itl UNAUDITED IA Revenue stream due 1/31/xx of each year for the prior calendar year 13)Revenue stream due 4/1/xx of each year 141 Revenue stream due 12/31/xx of each year Isl Payments received throughout the year from SCDOR Please refer to the City of North Augusta's Comprehensive Annual Financial Report and Official Statement with respect to the Series 20176 Bonds for additional information about the City. Please also refer to the City's additional voluntary disclosure related to the Coronavirus lCOVID-191 Outbreak. CNorth Augusta Public Facilities Corporation/City of North Augusta Series 2017B Bonds Voluntary Filing Regarding COVID-19 Outbreak May 18,2020 The current outbreak of the 2019 Novel Coronavirus Disease("COVID-19"),a respiratory disease characterized by the World Health Organization as a pandemic, is negatively impacting most,if not all,areas ofthe world,including the United States.Within the United States,the federal government and various state and local level governments as well as private entities and institutions have implemented a variety of efforts aimed at preventing the spread of COVID-19 including, but not limited to, travel restrictions, voluntary and mandatory quarantines, event postponement and cancellations, voluntary and mandatory work from home arrangements and facility closures. Specifically, within South Carolina, Governor Henry McMaster has taken certain actions intended to limit the spread of COVID-19. On March 13, 2020, Governor McMaster issued Executive Order No. 2020-08 declaring a State of Emergency exists in the State of South Carolina (the "State"). Since issuing Order No. 2020-08, Governor McMaster has issued successive Executive Orders pursuant to the established State of Emergency including, but not limited to: Executive Order No.2020-09 closing all public schools in South Carolina(but allowing modified operations to continue to effectuate distance learning), including state-supported colleges and C universities including the City; Executive Order No. 2020-13 restricting gatherings of people in groups of three or more outside of private homes; Executive Order No. 2020-17 directing that certain "non-essential" businesses, venues, facilities, services, and activities be closed to the public, including recreational and athletic facilities and activities; and Executive Order No. 2020- 21 directing citizens to not leave their residences unless they are engaging in essential activities or essential businesses. Recently, Governor McMaster issued Executive Order No. 2020-35 on May 12, 2020 declaring a new, separate, and distinct State of Emergency related to COVID-19. In addition to proactively preparing for and properly responding to the continued spread of COVID-19, Executive Order No. 2020-35 was also intended to confront the significant economic impacts of COVID-19, in order to stabilize and reinvigorate the State's economy. This Executive Order, in addition to others,extended and modified prior Executive Orders to allow for the limited reopening of restaurants, recreation facilities, and other non-essential services, all with certain restrictions. By recent Executive Orders Governor McMaster is incrementally reopening businesses in order to facilitate economic recovery and revitalization. However,measures taken by world, national, and state governments in response to CO VID-19 are still impacting the movement of people and global economic activity,and such impacts are expected to continue for an indeterminate period of time. Many such measures are currently impacting and are expected to continue to impact the operations of the City for an indeterminate period of time. C COver the coming months, should then prevailing data and guidance, or then in-effect governmental orders or directives, prevent or substantially limit public gatherings, the City anticipates that such result may negatively impact the realization of certain revenues associated with tourism and recreation, including but not limited to hospitality taxes, accommodations taxes, and parking and stadium revenues. Furthermore, the City is party to certain contracts, including but not limited to the Stadium License Agreement, that contain force majeure provisions which have been invoked in cases where payments of certain amounts have been delayed. The degree of impacts to the City and its operations and finances are extremely difficult to predict due to the dynamic nature of the COVID-19 outbreak, including uncertainties relating to its (i) duration, (ii) severity, (iii) ultimate geographic spread, as well as actions by other governmental authorities including(iv)limitations on public assemblies and gatherings. This notice speaks only as of its date. This notice is not made in connection with a purchase or sale of securities and accordingly in not intended to contain all information material to a decision to purchase or sell obligations of the City. In providing this notice the City makes no representation with respect to the materiality of the information herein to any investor. C C 2 ATTACHMENT #3 i Grant Information: • Total amount allocated: $25,000 • Grant award: up to $1,000 • Minimum number of grant awards: 25 • Grants awarded based on proof of purchase and payment o Purchases made between March 13, 2020—July 31, 2020 0 100% reimbursement grant for purchases up to $1,000 Grant Program Timeline: • Competitive application period: June 2, 2020—June 16, 2020 • Application evaluation period: June 17, 2020—July 2, 2020 • City Council grant approval: July 6, 2020 council meeting Requirements: • Grant requests must be related to COVID-19 related expense OR to cover City utility bills in arrears since March 13. • Business must be open to customers to receive grant. At minimum, by June 1, 2020. If not yet re-opened, business must provide date for scheduled re-opening and be open by July 31. Reimbursement grant will be issued once business is confirmed to be re-opened. `- Eligibility: • Must have a brick and mortar store in the North Augusta City limits • Must be current on City business license and property taxes(if building is owned) • Business must have been open for six months prior to March 13, 2020 • Current number of employees: Minimum—2; maximum—25 • The following types of businesses are eligible, with the following preference rank criteria: 1. Restaurants (must be local to the CSRA or State of South Carolina, no national restaurant chains; must be stand-alone, separate from another entity) 2. Close-contact service providers as follows: (a) Barber shops (b) Hair salons (c)Waxing salons (d)Threading salons (e) Nail salons and spas (f) Body-art facilities and tattoo services (g) Tanning salons (h) Massage-therapy establishments 3. Recreational and athletic facilities as follows: (a) Fitness and exercise centers and commercial gyms (b) Spas (c) Group exercise facilities, to include yoga, barre, and spin studios or facilities 4. Retail stores and entertainment as follows: (a) Furniture and home-furnishings stores (b) Clothing, shoe, and clothing-accessory stores (c) Jewelry, luggage, and leather goods stores (d) Department stores, with the exception of hardware and home- improvement stores (e) Sporting goods stores (f) Book, craft, and music stores (g) Florists and flower stores (h) bowling alley • Ineligible businesses: 1. All "essential services" businesses as defined by the governor that were allowed to i remain open for duration of state of emergency, with exception of restaurants l,_, 2. All other types of businesses not listed as eligible above.