12.31.2019 Comprehensive Annual Financial ReportNorth
Auusta \
South Carolina's Riverfront
CITY OF NORTH AUGUSTA
COMPREHENSIVE ANNUAL
FINANCIAL REPORT
Year Ended December 31, 2019
CITY OF NORTH AUGUSTA
SOUTH CAROLINA
COMPREHENSIVE ANNUAL
FINANCIAL REPORT
YEAR ENDED
DECEMBER 31, 2019
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 58
Schedule of contributions to pensions 59
Other Supplementary Information
General Fund – Schedule of Revenues and Expenditures Compared with Budget 60
Combining and Individual Nonmajor Fund Financial Statements
Nonmajor Governmental Funds – Combining Balance Sheet 73
Nonmajor Capital Projects Funds – Combining Balance Sheet 74
Nonmajor Special Revenue Funds – Combining Balance Sheet 75
Nonmajor Governmental Funds – Combining Statements of Revenues, Expenditures
and Changes in Fund Balance 76
Nonmajor Capital Projects Funds – Combining Statements of Revenues, Expenditures
and Changes in Fund Balance 77
Nonmajor Special Revenue Funds – Combining Statements of Revenues,
Expenditures and Changes in Fund Balance
78
Enterprise Fund – Water and Wastewater System:
Schedule of Revenues and Expenses – Budgeted and Actual 79
Schedule of Operating Expenses – Budgeted and Actual 80
Enterprise Fund – Sanitation Services:
Schedule of Revenues and Expenses – Budgeted and Actual 83
Schedule of Operating Expenses – Budgeted and Actual 84
Enterprise Fund – Stormwater Utility Fund:
Schedule of Revenues and Expenses – Budgeted and Actual 86
Schedule of Operating Expenses – Budgeted and Actual 87
Schedule required by State Law
Schedule of Fines, Assessments, and Surcharges
88
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
TABLE OF CONTENTS
Table Page
STATISTICAL SECTION (UNAUDITED)
Net position by component 1 89
Changes in net position 2 90
Fund balances, governmental funds 3 92
Changes in fund balances, governmental funds 4 93
Assessed value and estimated actual value of taxable property 5 94
Direct and overlapping property tax rates 6 95
Principal property taxpayers 7 96
Property tax levies and collections 8 97
Business licenses/franchise fees 9 98
Number of utility customers 10 99
Ten largest water and wastewater customers 11 100
Ratio of outstanding debt by type 12 101
Ratios of general bonded debt outstanding 13 102
Direct and overlapping governmental activities debt 14 103
Legal debt margin information 15 104
Pledged-revenue bond coverage 16 105
Economic statistics 17 106
Principal employers 18 107
Full-time budget equivalent employees by fund/function/department 19 108
Operating indicators by function/program 20 109
Capital asset statistics by function/program 21 110
Enterprise funds rates and charges 22 111
Enterprise funds history of rates and charges 23 112
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
113
INTRODUCTORY
SECTION
North
Augusta
Sot Hi Carolina's Rivet-front
June 30, 2020
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, 2019.
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, 2019, 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, 2019, 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 encompassesapproximately 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. The City added a splash pad at Riverview Park during 2019 with the use of funds from the capital projects sales tax.
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
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County Water and Sewer Authority to provide water and/or wastewater service to certain customers within
their service areas.
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, 2019
Present Allocation (MGD) Present Use (MGD)
City of North Augusta 8.672 4.76317
City of Aiken 7.134 5.16076
Aiken County 1.185 0.00000
Cytec Industries, Inc. .900 0.05746 Bath .070 0.03218
Breezy Hill 1.252 0.51733
Beech Island Water & Sewer .060 0.00795
Clearwater .050 0.04392
Langley .060 0.03856 VPSA .417 0.43858
PACTIV .050 0.01017
Kimberly Clark .150 0.04361
Uncommitted .000 0.00000
Total 20.000 11.11369
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.
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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
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 26,721 for 2019.
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 2.9 percent for 2019. The 2019 rate is
slightly higher than South Carolina’s 2019 unemployment rate of 2.86 percent and less than the 2019
national rate of 3.7 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
$56,811, Aiken County’s is $50,036, and the state’s is $51,015. Housing prices in the City continue to
remain strong. Per the USCB, the median price of a single family home in the City is $157,800.
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. We continue to see development plans and growth at both interstate access points leading into our city.
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The City continues to make substantial progress in 2019 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 second season in the 4,500 seat SRP Park. In addition, 314 apartments, a hotel and conference center, as well as several restaurants have been completed at Riverside Village. In 2019,
construction began on a parking deck that will be utilized by the stadium and upcoming office building.
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 that is
scheduled to be complete in 2020. 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 included with Capital Projects Sales Tax IV.
The Local Hospitality and Accommodations taxes levied by the City during 1998 have continued as a
positive revenue stream in 2019. During November 2018, Aiken County voters approved the fourth phase
of a county-wide One-Cent Capital Projects Sales Tax. Current estimates reflect that the fourth phase sales tax will generate approximately $30,700,000 for the City over seven years which will begin in 2020.
These funds have been earmarked for a variety of projects as mentioned above.
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 12/31/2019 is $330,905.
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, 2018. This was
the thirty-seventh consecutive year that the government has achieved this prestigious award. In order to
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be awarded a Certificate of Achievement,the government hadto publish an easily readable and efficiently
organized CAFR that satisfiedboth generally accepted accounting principles and applicable program
requirements.
A Certificate of Achievement for Excellence in Financial Reporting is validfor a period ofone year only.
However, we believe that our current CAFR continues to meet the Certificate of Achievement for
Excellence in FinancialReporting Program's requirements, and we are submitting it tothe 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 tothankall City employees who
assisted and contributed the datanecessary toprepare this report. Credit is also due to the Mayor and
Council for their unfailing support in maintaining thehighest standards of professionalism in the
management of the City of North Augusta's finances.
Respectfully submitted, Respectfully submitted,
0 1 NA41.1
chelle M. Mood Cammie T. Hayes
Interim City Administrator Director of Finance
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North
Augusta vy
South Carolina 's Riverfront
7
CITY OF NORTH AUGUSTA ORGANIZATION CHART – 2019
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
ASST. CITY
ADMINISTRATOR
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CITY OF NORTH AUGUSTA, SOUTH CAROLINA
PRINCIPAL OFFICIALS
CITY COUNCIL
Robert A. Pettit, Mayor
(05-17 to 05-21)
Pat C. Carpenter, Councilwoman David W. McGhee, Councilman
(05-93 to 05-21) (05-13 to 05-21)
Fletcher L. Dickert, Councilman J. Robert Brooks, Councilman
(05-13 to 05-21) (05-15 to 05-23)
Eric H. Presnell, Councilman Kevin W. Toole, Councilman
(05-19 to 05-23) (05-19 to 05-23)
CITY ADMINISTRATOR
B. Todd Glover
(01-01-19 to 11-01-19)
INTERIM CITY ADMINISTRATOR
Rachelle M. Moody
(11-01-19 to 12-31-19)
CITY CLERK
Sharon Lamar
DEPARTMENT DIRECTORS
Cammie T. Hayes, Director of Finance
Lillian E. Hodges, Director of Planning & Development
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
9
FINANCIAL
SECTION
North `
Au g usta \
ticn tl Carolina'sliners FiiucrjrO u
Report of Independent Auditor
To the 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, 2019, 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 City’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 City’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, 2019, 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.
Emphasis of a Matter
Restatement of Prior Net Position
As discussed in Note 14 to the financial statements, in 2019, the City determined that restatements of beginning
net position were required to reflect infrastructure assets deeded to the City in prior years but not reflected in the
City’s capital asset schedule. Our opinions are not modified with respect to this matter.
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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 30, 2020, 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 30, 2020
11
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, 2019. 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 $133,853,208 (net position). Of this amount, ($8,553,342), 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 decreased by $1,878,135. Net position for the beginning of the year
was restated due to the effect of a prior period adjustment to capital assets. Beginning of the year net position increased $3,098,350.
• At the close of the current fiscal year, the City’s governmental funds reported combined fund balances of $15,619,071, a decrease of $1,799,684 in comparison with the prior year. The
majority of the decrease represents construction and completion of City projects in Riverside Village and related debt payments as well as other City capital projects. Approximately 18.41
percent of the governmental funds combined fund balance, $2,875,000, 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 $3,308,393 or 16.86 percent of total general fund expenditures.
• The City’s outstanding long-term debt, not including compensated absences, decreased by $867,602 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
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decreases in net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating.
The statement of activities presents information showing how the City’s net position changed during the
most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses
are reported for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave).
Both of the government-wide financial statements distinguish functions of the City that are principally
supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-
type activities). The governmental activities of the City include general government, public safety, public works, and parks, recreation, and tourism. The business-type activities of the City include water and
wastewater utility, sanitation services, and stormwater enterprise.
The government-wide financial statements include not only the City itself (known as the primary government), but also a legally separate public facilities corporation for which the City is financially
accountable. The corporation, although a legally separate entity, functions for all practical purposes as a fund of the City and therefore has been included as an integral part of the primary government.
The government-wide financial statements can be found immediately following this discussion and
analysis.
Fund Financial Statements
A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other local governments, uses fund
accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the City can be divided into two categories: governmental funds and proprietary funds. The City
does not have a fiduciary fund.
Governmental funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the
government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end
of the fiscal year. Such information may be useful in evaluating a government’s near-term financing requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial
statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing
so, readers may better understand the long-term impact of the government’s near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues,
expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.
The City maintains thirteen 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 nine
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.
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The City adopts an annual appropriated budget for its General Fund. A budgetary comparison statement has been provided for the General Fund to demonstrate compliance with the budget.
The basic governmental fund financial statements can be found immediately following the government-
wide financial statements.
Proprietary funds. The City maintains one type of proprietary fund. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements.
The City uses enterprise funds to account for its water, wastewater, sanitation, and stormwater operations as well as the Savannah Bluff Lock and Dam that was created for the purpose of maintaining the Augusta
pool on the Savannah River.
Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for the water,
wastewater, sanitation and stormwater operations, all of which are considered to be major funds of the City. Savannah Bluff Lock and Dam is a nonmajor fund. The proprietary fund financial statements can
be found immediately following the governmental fund financial statements.
Notes to the Financial Statements. The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to
the financial statements can be found immediately following the proprietary fund financial statements.
Other Financial Information. In addition to the basic financial statements, the accompanying notes, and the required supplementary information, this report presents certain financial data of individual fund
statements and schedules.
Government-Wide Financial Analysis
As noted earlier, net position over time may serve as a useful indicator of a government’s financial position. In the case of the City, assets and deferred outflows of resources exceeded liabilities and
deferred inflows of resources by $133,853,208 at the close of the most recent fiscal year.
City of North Augusta's Net Position
2019 2018 2019 2018 2019 2018
Current and other assets 17,407,786$ 21,200,221$ 20,373,825$ 19,963,415$ 37,781,611$ 41,163,636$
Capital assets 134,510,335 132,221,073 80,445,788 79,319,989 214,956,123 211,541,062
Total Assets 151,918,121 153,421,294 100,819,613 99,283,404 252,737,734 252,704,698
Deferred outflows of resources 2,006,549 2,230,078 890,351 934,528 2,896,900 3,164,606
Long-term liabilities outstanding 87,671,752 87,589,157 29,172,552 29,721,492 116,844,304 117,310,649
Other liabilities outstanding 2,209,988 3,147,800 1,711,075 2,665,484 3,921,063 5,813,284
Total Liabilities 89,881,740 90,736,957 30,883,627 32,386,976 120,765,367 123,123,933
Deferred inflow of resources 757,721 53,942 258,338 58,436 1,016,059 112,378
Net position:
Net investment in capital assets 64,540,113 65,640,358 60,703,383 58,580,045 125,243,496 124,220,403
Restricted 8,729,598 6,574,221 8,433,456 7,977,008 17,163,054 14,551,229
Unrestricted (9,984,502) (7,354,106) 1,431,160 1,215,467 (8,553,342) (6,138,639)
Total Net Position 63,285,209$ 64,860,473$ 70,567,999$ 67,772,520$ 133,853,208$ 132,632,993$
Governmental Activities Business-type Activities Total
By far, the largest portion of the City’s net position (93.57 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
14
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 (12.82 percent) represents resources that are subject to
external restrictions on how they may be used. The remaining balance of ($8,553,342) 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 2019, governmental activities decreased the City’s net position by $2,549,562, thereby accounting for the decline in net position. Governmental activities revenues decreased $289,294 from 2018 to 2019
primarily due to a decrease in available revenues from other taxes related to the end of Sales Tax III. Property taxes represent 34.08 percent of total revenues for governmental activities. Charges for services
include: business license revenues, franchise fees, construction permits and public safety fines. These revenues represent 38.30 percent of total revenues for governmental activities and are predominantly
elastic in nature and vary with economic trends.
Also during 2019, governmental activities expenses increased by $3,481,666. General government expenses increased by $2,752,744, or 31.09 percent due to increases in personnel costs to include new
positions, retirement and insurance expenses as well as capital purchases for its functional areas. Public Works expenses increased by 7.31 percent due to construction related to transportation improvement
projects. Expenses related to parks, recreation and tourism increased with the addition of a splash pad at Riverview Park as well as other sales tax project improvements. Public Safety expenses were relatively
consistent with the prior year.
15
City of North Augusta's Changes in Net Position
2019201820192018 2019 2018
Revenues:
Program revenues:
Charges for services 9,505,367$ 9,251,841$ 15,443,563$ 14,885,573$ 24,948,930$ 24,137,414$
Operating grants and contributions 1,265,522 1,377,317 23,516 80,636 1,289,038 1,457,953
Capital grants and contributions 759,852 - 616,830 23,514 1,376,682 23,514
General revenues:
Property taxes 8,456,230 8,143,925 - - 8,456,230 8,143,925
Other taxes 3,460,522 4,897,658 - - 3,460,522 4,897,658
Other 1,367,816 1,433,862 959,613 1,121,576 2,327,429 2,555,438
Total Revenues 24,815,309 25,104,603 17,043,522 16,111,299 41,858,831 41,215,902
Expenses:
General government 11,607,797 8,855,053 - - 11,607,797 8,855,053
Public safety 9,079,791 9,253,259 - - 9,079,791 9,253,259
Public works 2,936,592 2,736,631 - - 2,936,592 2,736,631
Parks, recreation, and tourism 4,212,339 3,785,041 - - 4,212,339 3,785,041
Interest and fiscal charges on debt service 276,699 1,568 - - 276,699 1,568
Water and wastewater - - 10,077,290 8,896,535 10,077,290 8,896,535
Sanitation - - 4,733,146 4,624,936 4,733,146 4,624,936
Stormwater - - 789,312 661,987 789,312 661,987
Savannah Bluff Lock and Dam - - 24,000 23,999 24,000 23,999
Total Expenses 28,113,218 24,631,552 15,623,748 14,207,457 43,736,966 38,839,009
Increase (decrease) in net position before transfers (3,297,909) 473,051 1,419,774 1,903,842 (1,878,135) 2,376,893
Transfers 748,347 169,254 (748,347) (169,254) - -
Increase in net position (2,549,562) 642,305 671,427 1,734,588 (1,878,135) 2,376,893
Net position-beginning of year 64,860,473 64,218,168 67,772,520 66,037,932 132,632,993 130,256,100
Effect of prior period adjustment to capital assets 974,298 - 2,124,052 - 3,098,350 -
Net position-beginning of year, as restated 65,834,771 64,218,168 69,896,572 66,037,932 135,731,343 130,256,100
Net position-end of year 63,285,209$ 64,860,473$ 70,567,999$ 67,772,520$ 133,853,208$ 132,632,993$
Governmental Activities Business-type Activities Total
Business-type Activities
Business-type activities increased the City’s net position by $671,427. Water, sanitation and stormwater
rates remained unchanged. Water sales increased 10.25 percent over the prior year and were over budget by approximately $294,000 related to an increase in usage and customer base. Sewer sales
increased approximately $144,000, 2.31 percent, over the prior year also related to an increase in customer base. Fees for sanitation services and recycling increased $190,257 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 $1,180,755 from the prior year primarily
due to increased expenses from Aiken County Public Service Authority for wastewater treatment. In
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2019, the expenses for the Sanitation Services Fund showed an increase from the prior year of $108,210 due to increased repair costs at the Material Recovery Facility related to a fire at the facility during fourth
quarter 2018. Increased expenses in the Stormwater Utility Fund were $127,325 due to increased personnel costs and depreciation of capital assets. A total of $24,000 was expended from the Savannah
Bluff Lock and Dam Fund. This expense for consulting services was intended to assist the City and other members of the consortium in the execution of a solution to improve the lock and dam that is in the best
interests of the parties directly affected by its operation.
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, 2019, the City’s governmental funds reported combined fund balances of $15,619,071 a decrease of $1,799,684 from the prior year. Approximately 18.41 percent of this amount constitutes
unassigned fund balance, which is available for spending at the City’s discretion. Unassigned fund balance increased by $50,000 for the year due to the City’s reserve requirement to adjust the unassigned
fund balance in the General Fund as the budget fluctuates 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 $2,875,000, while total fund balance was $3,423,618. 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 14.65 percent of total General Fund expenditures, while total fund balance represents 17.44 percent of those same expenditures.
The final payment for the Sales Tax III Fund was received in 2019. Total fund balance for this fund
increased 43.17 percent due to project completion dates being pushed into 2020. The Capital Projects Fund had a fund balance of $2,103,849, an increase of 57.81 percent, due to the allocation of an
additional 0.5 mills to the fund as well as reduced expenditures in order to prepare for the future implementation of a revised capital improvement program. Fund balance for the North Augusta Public
Facilities Corporation Fund decreased 48.21 percent from the prior year due to continued payments for
debt service and timing of transfers made into the fund.
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Fund balance for the City’s nonmajor governmental funds totaled $2,912,384 for 2019, a decrease of
$1,112,952 primarily related to increased capital outlay expenditures for transportation improvements and other capital projects 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, 2019.
Current property tax revenues exceeded budget by approximately $237,000. Additionally, revenues for licenses and building permits did not meet budgeted revenues by approximately $200,000. This is
reflective of estimated construction licenses for projects in Riverside Village that will occur in a future year. Charges for services reflected a positive variance with budgeted revenues primarily due to
tournaments at the Activities Center. Miscellaneous revenues exceeded budget by approximately $270,000 reflective of conservative interest estimates as well as receipt of unbudgeted grants funds for a
greeneway resurfacing project. Intergovernmental revenues were in line with expectations.
General Government expenditures were in line with budgeted expectations for 2019 with salary savings resulting from vacant positions. The over-expenditures for public safety were due to increased personnel
costs and the purchase of vehicles and equipment with capital lease proceeds. Public Works and Parks, Recreation, and Tourism expenditures were over budget due to the purchase of vehicles and equipment
with capital lease proceeds. 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, 2019 amounts to $214,956,123 (net of accumulated depreciation). This investment in capital assets includes land, land improvements, rights-of-way and easements, buildings, machinery
and equipment, furniture and fixtures, infrastructure, system improvements, PSA capital, and construction in progress. The total increase in capital assets for the current fiscal year was 1.61 percent. Additional
information on the City’s capital assets can be found in Note 4 of this report.
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City of North Augusta's Capital Assets
(net of depreciation)201920182019201820192018
Land 10,330,391$ 10,051,486$ 824,058$ 824,058$ 11,154,449$ 10,875,544$
Land improvements 9,281,274 7,391,079 - - 9,281,274 7,391,079
Right-of-way and easements 3,490,419 3,226,901 62,760 62,760 3,553,179 3,289,661
Buildings 91,665,215 95,340,866 20,175,751 20,860,986 111,840,966 116,201,852
Machinery and equipment 933,567 258,910 948,411 905,840 1,881,978 1,164,750
Furniture and fixtures 156,154 263,860 - - 156,154 263,860
Vehicles 3,623,273 3,302,013 813,928 952,189 4,437,201 4,254,202
Infrastructure 13,810,646 12,117,190 - - 13,810,646 12,117,190
System improvements - - 55,885,934 53,863,704 55,885,934 53,863,704
PSA capital - - 1,732,871 1,848,377 1,732,871 1,848,377
Construction in progress 1,219,396 268,768 2,075 2,075 1,221,471 270,843
Total Capital Assets 134,510,335$ 132,221,073$ 80,445,788$ 79,319,989$ 214,956,123$ 211,541,062$
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
• New telemetry system
• Greeneway improvements
• Splash pad at Riverview Park
• New air packs and firetruck for public safety
• Purchase of land for public safety fire station
• Various improvements to water and wastewater systems
• 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 to include parking meters.
The City has committed over $1,200,000 to construction completion of the amphitheater in Riverside
Village.
Long-Term Debt. At the end of the current fiscal year, the City had total bonded debt outstanding of $88,364,980. The City’s debt represents bonds secured solely by specified revenue sources.
City of North Augusta's Outstanding Debt
20192018 2019201820192018
Revenue bonds 69,475,000$ 69,475,000$ 18,889,980$ 19,877,539$ 88,364,980$ 89,352,539$
Capital leases 1,304,026 1,174,089 852,425 862,405 2,156,451 2,036,494
Total Outstanding Debt 70,779,026$ 70,649,089$ 19,742,405$ 20,739,944$ 90,521,431$ 91,389,033$
Governmental Activities Buisness-type Activities Total
The City’s total debt outstanding, less compensated absences, decreased by $867,602 during the current
fiscal year. This decrease was attributed to making scheduled debt service payments during 2019.
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 1.89 in 2019. 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 $2,156,451 in capital leases for equipment and vehicles and long-term debt related to compensated absences amounting to $939,694
(not presented in the table above).
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Additional information regarding the City’s capitalized lease obligations and long-term debt can be found in Notes 5 and 6 of this report.
Economic Factors and Next Year’s Budgets and Rates
The following economic factors currently affect the City and were considered in developing the 2020 fiscal
year budget:
• The unemployment rate for Aiken County has been decreasing since 2011 and is estimated at 2.9
percent for 2019 reflecting pre-recession unemployment rates.
• The value of a mill has increased over 48 percent during the past ten years reflective of a recovering economy. The millage rate is currently 73.50.
• Increases are expected in health insurance premiums, as well as pension and other employee benefit costs.
• Decrease expected in business license revenue due to one-time licenses related to construction
projects.
• Permit fees were increased after an internal rate review was performed with comparable municipalities and surrounding communities.
• The City plans to re-establish its merit based compensation plan by beginning with a mid-year 2 percent increase.
• For business-type activities, rates remain the same.
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 Finance Department, 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, 2019
The notes to the financial statements are an integral part of this statement.
Governmental Business-type
Activities Activities Total
ASSETS
Equity in pooled cash 4,436,885$ 3,738,037$ 8,174,922$
Investments 11,139,680 5,592,967 16,732,647
Receivables:Taxes, net 142,624 - 142,624 Customers, net - 1,731,704 1,731,704 Other 500,934 - 500,934
Inventory - 265,842 265,842
Restricted cash and investments 1,187,663 9,024,287 10,211,950
Capital assets, net:Nondepreciable capital assets 15,040,206 888,893 15,929,099 Depreciable capital assets, net 119,470,129 79,556,895 199,027,024 Service rights, net - 20,988 20,988
Total Assets 151,918,121 100,819,613 252,737,734
DEFERRED OUTFLOWS OF RESOURCES
Pension investment return 591,445 277,748 869,193
Pension experience differences 164,406 6,970 171,376
Contributions to pension plan 669,725 329,272 998,997
Change in proportionate share 114,782 79,991 194,773 Assumption changes 466,191 196,370 662,561 Total Deferred Outflows of Resources 2,006,549 890,351 2,896,900
LIABILITIES
Accounts payable 1,007,227 612,731 1,619,958 Accrued expenses 412,810 74,811 487,621 Municipal court liability 48,184 - 48,184
Accrued interest payable 657,670 - 657,670
Payable from restricted resources:
Accounts payable 325 - 325 Accrued bond interest - 27,559 27,559 Customer deposits - 563,272 563,272 Unearned revenue 83,772 432,702 516,474
Noncurrent liabilities:
Due within one year 1,002,944 1,346,772 2,349,716
Due in more than one year 70,444,725 18,666,684 89,111,409 Net pension liability 16,224,083 9,159,096 25,383,179
Total Liabilities 89,881,740 30,883,627 120,765,367
DEFERRED INFLOWS OF RESOURCES
Pension investment return 422,425 192,410 614,835
Pension experience differences 118,939 64,979 183,918 Change in proportionate share 216,357 949 217,306 Total Deferred Inflows of Resources 757,721 258,338 1,016,059
NET POSITION
Net investment in capital assets 64,540,113 60,703,383 125,243,496 Restricted for:
Bond indentures - 7,572,726 7,572,726
Operations - Savannah Bluff Lock and Dam - 860,730 860,730
Victims assistance 115,225 - 115,225 Public safety - fire division 137,464 - 137,464 Capital projects 5,450,809 - 5,450,809 Special projects 3,026,100 - 3,026,100
Unrestricted (9,984,502) 1,431,160 (8,553,342) Total Net Position 63,285,209$ 70,567,999$ 133,853,208$
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CITY OF NORTH AUGUSTA, SOUTH CAROLINA
STATEMENT OF ACTIVITIES
YEAR ENDED DECEMBER 31, 2019
The notes to the financial statements are an integral part of this statement.
Operating Capital
Charges for Grants and Grants and Governmental Business-type
Functions/Programs Expenses Services Contributions Contributions Activities Activities Total
Governmental Activities:
General government 11,607,797$ 6,256,452$ 910,459$ 759,852$ (3,681,034)$ -$ (3,681,034)$
Public safety 9,079,791 1,044,181 72,274 - (7,963,336) - (7,963,336)
Public works 2,936,592 108,726 282,789 - (2,545,077) - (2,545,077)
Parks, recreation and tourism 4,212,339 2,096,008 - - (2,116,331) - (2,116,331)
Interest and fiscal charges on debt service 276,699 - - - (276,699) - (276,699)
Total Governmental Activities 28,113,218 9,505,367 1,265,522 759,852 (16,582,477) - (16,582,477)
Business-type Activities:
Water and wastewater 10,077,290 10,151,786 23,516 213,290 - 311,302 311,302
Sanitation 4,733,146 4,487,564 - - - (245,582) (245,582)
Stormwater utility 789,312 804,213 - 403,540 - 418,441 418,441
Savannah Bluff Lock and Dam 24,000 - - - - (24,000) (24,000)
Total Business-type Activities 15,623,748 15,443,563 23,516 616,830 - 460,161 460,161
Total 43,736,966$ 24,948,930$ 1,289,038$ 1,376,682$ (16,582,477) 460,161 (16,122,316)
General Revenues:
Ad valorem property taxes 8,456,230 - 8,456,230
Local hospitality and accommodation taxes 2,017,221 - 2,017,221
Capital projects sales taxes 1,443,301 - 1,443,301
Interest on investments 330,669 327,680 658,349
Gain on disposal of capital assets 31,203 465 31,668
Miscellaneous 1,005,944 631,468 1,637,412
Transfers 748,347 (748,347) -
Total General Revenues and Transfers 14,032,915 211,266 14,244,181
Change in net position (2,549,562) 671,427 (1,878,135)
Net position, beginning of year 64,860,473 67,772,520 132,632,993
Effect of prior period adjustment to capital assets 974,298 2,124,052 3,098,350
Net position, beginning of year, as restated 65,834,771 69,896,572 135,731,343
Net position, end of year 63,285,209$ 70,567,999$ 133,853,208$
Net (Expense) Revenue and
Changes in Net PositionProgram Revenues
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CITY OF NORTH AUGUSTA, SOUTH CAROLINA
BALANCE SHEET
GOVERNMENTAL FUNDS
DECEMBER 31, 2019
SalesCapital North Augusta NonmajorTotal
GeneralTax IIIProjectsPublic FacilitiesGovernmentalGovernmental
Fund Fund FundCorporationFundsFunds
ASSETS
Equity in pooled cash 1,436,955$ -$ 507,499$ 1,638,780$ 853,651$ 4,436,885$
Investments 2,777,533 4,554,111 1,596,350 1,023,846 1,187,840 11,139,680
Receivables:
Taxes, net of allowance for doubtful accounts 142,624 - - - - 142,624
Grants - - - - 31,461 31,461
Other 283,368 - - 123,972 62,133 469,473
Restricted cash and investments 115,225 147,050 - 2,900 922,488 1,187,663
Total Assets 4,755,705$ 4,701,161$ 2,103,849$ 2,789,498$ 3,057,573$ 17,407,786$
LIABILITIES
Accounts payable 635,541$ 96,397$ -$ 215,042$ 60,572$ 1,007,552$
Accrued salaries, wages, and employee benefits411,965 - - - 845 412,810
Accrued interest95,654 - - - - 95,654
Municipal court liability48,184 - - - - 48,184
Unearned revenue - assessment fees- - - - 83,772 83,772
Total Liabilities 1,191,344 96,397 - 215,042 145,189 1,647,972
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - property taxes 140,743 - - - - 140,743
Total Deferred Inflows of Resources 140,743 - - - - 140,743
FUND BALANCES
Restricted for:
Capital projects - 4,604,764 - - 846,045 5,450,809
Victim's assistance 115,225 - - - - 115,225
Public Safety - fire division - - - - 137,464 137,464
Special projects - - - 2,574,456 1,260,773 3,835,229
Committed for:
Capital projects 330,905 - 2,103,849 - 621,597 3,056,351
Parks, recreation and tourism - - - - 12,367 12,367
Housing and development 102,488 - - - - 102,488
Assigned for:
Capital projects - - - - 34,138 34,138
Unassigned 2,875,000 - - - - 2,875,000
Total Fund Balances 3,423,618 4,604,764 2,103,849 2,574,456 2,912,384 15,619,071
Total Liabilities, Deferred Inflows
of Resources, and Fund Balances 4,755,705$ 4,701,161$ 2,103,849$ 2,789,498$ 3,057,573$ 17,407,786$
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, 2019
Ending fund balance - governmental funds 15,619,071$
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 181,460,514
Accumulated depreciation (46,950,179)
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 2,006,549
Deferred inflows of resources related to pensions (757,721)
Capital leases (1,304,026)
Bonds payable (69,475,000)
Accrued vacation (668,643)
Accrued interest (562,016)
Net pension liability (16,224,083)
Amounts to be collected are not available to pay for the current period's expenditures
and therefore are deferred in the funds 140,743
Net Position of Governmental Activities 63,285,209$
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.
24
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
YEAR ENDED DECEMBER 31, 2019
SalesCapitalNorth Augusta NonmajorTotal
General Tax IIIProjectsPublic FacilitiesGovernmentalGovernmental
Fund Fund FundCorporationFundsFunds
Revenues:
Ad valorem property tax7,494,447$ -$ 104,892$ -$ 804,992$ 8,404,331$
Sales taxes- 2,235,581 - - - 2,235,581
Local hospitality and accommodation taxes- - - - 2,017,221 2,017,221
Licenses and permits6,256,452 - - - - 6,256,452
Fines and forfeitures1,006,060 - - - - 1,006,060
Charges for services1,453,009 - - 773,210 - 2,226,219
Intergovernmental863,130 - - 249,648 456,887 1,569,665
Interest earnings101,76646,604 27,739 80,536 74,024 330,669
Miscellaneous778,327 - 10 - 2,630 780,967
Total Revenues17,953,191 2,282,185 132,641 1,103,394 3,355,754 24,827,165
Expenditures:
Current:
General government5,444,738- 36,211 269,785 896 5,751,630
Public safety8,874,479- - - 57,844 8,932,323
Public works1,708,320- - - 20,198 1,728,518
Parks, recreation and tourism2,901,779 - - - 376,511 3,278,290
Capital outlay- 893,6056,973 1,753,396 2,255,453 4,909,427
Debt service:
Capital lease payments 698,728 - 33,227 - - 731,955
Interest and fiscal charges - - - 3,217,751 - 3,217,751
Total Expenditures 19,628,044 893,605 76,411 5,240,932 2,710,902 28,549,894
Excess (deficiency) of revenues over expenditures (1,674,853) 1,388,580 56,230 (4,137,538) 644,852 (3,722,729)
Other Financing Sources (Uses):
Inception of capital lease obligation 838,111 - - - - 838,111
Transfers in 1,235,666 - 825,129 1,741,454 23,725 3,825,974
Transfers out (848,854) - (110,657) - (1,781,529) (2,741,040)
Total Other Financing Sources (Uses)1,224,923 - 714,472 1,741,454 (1,757,804) 1,923,045
Net change in fund balance (449,930) 1,388,580 770,702 (2,396,084) (1,112,952) (1,799,684)
Fund balance, beginning of year 3,873,5483,216,184 1,333,147 4,970,540 4,025,336 17,418,755
Fund balance, end of year 3,423,618$ 4,604,764$ 2,103,849$ 2,574,456$ 2,912,384$ 15,619,071$
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, 2019
Net change in fund balances - total governmental funds (1,799,684)$
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 6,713,533
Transfer of capital asset to enterprise funds (336,587)
Depreciation on general government assets(5,069,306)
Proceeds from sale of capital assets(23,879)
Gain on disposal of capital assets31,203
1,314,964
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 3,335
Principal payments on capital leases708,174
Proceeds from capital lease(838,111)
(126,602)
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.(276,699)
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.(778,240)
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 (883,301)
Change in net position of governmental activities (2,549,562)$
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, 2019
2019
OriginalOver
and Final (Under)
BudgetActualBudget
Revenues:
Ad valorem property taxes7,250,560$ 7,494,447$ 243,887$
Licenses and permits6,455,770 6,256,452 (199,318)
Fines and forfeitures1,090,000 1,006,060 (83,940)
Charges for services1,316,954 1,453,009 136,055
Intergovernmental825,001 863,130 38,129
Interest earnings44,000 101,766 57,766
Miscellaneous566,417 778,327 211,910
Total Revenues17,548,702 17,953,191 404,489
Expenditures:
Current:
General government5,664,231 5,444,738 (219,493)
Public safety8,062,283 8,874,479 812,196
Public works1,574,650 1,708,320 133,670
Parks, recreation and tourism2,767,373 2,901,779 134,406
Capital lease payments715,831 698,728 (17,103)
Total Expenditures18,784,368 19,628,044 843,676
Excess (deficiency) of revenues over expenditures(1,235,666) (1,674,853) (439,187)
Other Financing Sources (Uses):
Proceeds from capital lease obligations- 838,111 838,111
Transfers in1,235,666 1,235,666 -
Transfers out- (848,854) (848,854)
Total Other Financing Sources (Uses)1,235,666 1,224,923 (10,743)
Net change in fund balance-$ (449,930) (449,930)$
Fund balance, beginning of year 3,873,548
Fund balance, end of year 3,423,618$
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, 2019
Nonmajor Fund
Water and
Wastewater SanitationStormwaterSavannah BluffTotal
System ServicesUtilityLock and Dam Enterprise Funds
ASSETS
Current Assets:
Equity in pooled cash 2,209,186$ 1,074,751$ 454,100$ -$ 3,738,037$
Restricted cash and investments 2,449,820 - - 860,7303,310,550
Investments 2,643,2062,161,119788,642 - 5,592,967
Customer accounts receivable 1,538,457193,247 - - 1,731,704
Inventory 265,842 - - - 265,842
Total Current Assets 9,106,511 3,429,117 1,242,742 860,730 14,639,100
Non-current Assets:
Restricted cash and investments 5,713,737 - - - 5,713,737
Capital Assets
Non-depreciable 610,607 91,235 187,051 - 888,893
Depreciable, net 72,558,5872,295,4664,702,842 - 79,556,895
Service Rights, net 20,988 - - - 20,988
Total Non-current Assets 78,903,919 2,386,701 4,889,893 - 86,180,513
Total Assets 88,010,430 5,815,818 6,132,635 860,730 100,819,613
DEFERRED OUTFLOWS OF RESOURCES
Pension investment return 140,527112,879 24,342 - 277,748
Pension experience differences 3,274 3,365 331 - 6,970
Contributions to pension plan 171,146132,279 25,847 - 329,272
Change in proportionate share 41,931 32,644 5,416 - 79,991
Assumption changes 100,649 84,143 11,578 - 196,370
Total Deferred Outflows of Resources 457,527365,31067,514- 890,351
LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND NET POSITION
Current Liabilities:
Accounts payable 482,798 125,390 4,543 - 612,731
Accrued expenses 169,322143,756 32,784 - 345,862
Current portion of capital leases payable 93,985165,115 18,472 - 277,572
Unearned revenue 23,515 - - - 23,515
Payable from restricted assets:
Accrued bond interest 27,559 - - - 27,559
Current portion of revenue bonds payable 798,149 - - - 798,149
Customer deposits 563,272 - - - 563,272
Total Current Liabilities 2,158,600 434,261 55,799 - 2,648,660
Non-current Liabilities:
Capital leases payable 224,577301,620 48,656 - 574,853
Revenue bonds payable 18,091,831 - - - 18,091,831
Net pension liability 4,753,9603,696,675708,461 - 9,159,096
Unearned revenue 409,187 - - - 409,187
Total Non-current Liabilities 23,479,555 3,998,295 757,117 - 28,234,967
Total Liabilities 25,638,155 4,432,556 812,916 - 30,883,627
DEFERRED INFLOWS OF RESOURCES
Pension investment return 97,594 75,774 19,042 - 192,410
Pension experience differences 34,531 25,211 5,237 - 64,979
Change in proportionate share 437 512 - - 949
Total Deferred Inflows of Resources 132,562 101,497 24,279 - 258,338
Net Position:
Net investment in capital assets 53,960,652 1,919,966 4,822,765 - 60,703,383
Restricted for debt service 7,572,726 - - - 7,572,726
Restricted for operations - - - 860,730 860,730
Unrestricted 1,163,862 (272,891) 540,189 - 1,431,160
Total Net Position 62,697,240$ 1,647,075$ 5,362,954$ 860,730$ 70,567,999$
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, 2019
Business‐type Activities
Nonmajor Fund
Water and Total
Wastewater SanitationStormwaterSavannah BluffEnterprise
System ServicesUtility FundLock and Dam Funds
Operating Revenues:
Charges for services and fees10,151,786$ 4,344,782$ 804,213$ -$ 15,300,781$
Sale of recyclables- 142,782 - - 142,782
Other519,965 69,119 42,384 - 631,468
Total Operating Revenues10,671,751 4,556,683 846,597 - 16,075,031
Operating Expenses:
Finance 615,040 - - - 615,040
Administration 503,994 - - - 503,994
Operations and Maintenance 5,298,583 2,477,033 598,696 24,0008,398,312
Production and Treatment 1,548,867 - - - 1,548,867
Material Recovery Facility - 1,690,829 - - 1,690,829
Depreciation and amortization 1,715,817 552,325 189,626 - 2,457,768
Total Operating Expenses 9,682,301 4,720,187 788,322 24,000 15,214,810
Operating income (loss)989,450 (163,504) 58,275 (24,000) 860,221
Nonoperating Revenues (Expenses)
Intergovernmental 23,516 - - - 23,516
Interest earnings 235,489 53,098 19,397 19,696 327,680
Interest expense and fiscal charges (394,989) (12,959) (990) - (408,938)
Gain (loss) on disposal of capital assets (3,855) - 4,320 - 465
Total Nonoperating Revenues (Expenses)(139,839) 40,139 22,727 19,696 (57,277)
Income (loss) before contributions and transfers 849,611 (123,365) 81,002 (4,304) 802,944
Capital contributions 243,629 - 709,788 - 953,417
Transfers in 28,820 13,278 3,320 - 45,418
Transfers out (740,173) (362,450) (27,729) - (1,130,352)
Change in net position 381,887 (472,537) 766,381 (4,304) 671,427
Net position, beginning of year, as previously reported60,917,920 2,119,612 3,869,954 865,034 67,772,520
Effect of prior period adjustment to capital assets 1,397,433 - 726,619 - 2,124,052
Net position, beginning of year, as restated 62,315,353 2,119,612 4,596,573 865,034 69,896,572
Net position, end of year 62,697,240$ 1,647,075$ 5,362,954$ 860,730$ 70,567,999$
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, 2019
Business‐type Activities
Nonmajor Fund
Water and Total
Wastewater SanitationStormwaterSavannah Bluff Enterprise
System ServicesUtility FundLock and Dam Funds
Cash flows from operating activities:
Cash received from customers 10,814,357$ 4,492,497$ 847,197$ -$ 16,154,051$
Cash paid for or on behalf of employees (2,595,882) (2,065,455) (492,995) - (5,154,332)
Cash paid for goods and services (5,779,795) (1,971,435) (57,481) (24,000) (7,832,711)
Net cash from operating activities 2,438,680 455,607 296,721 (24,000) 3,167,008
Cash flows from noncapital financing activities:
Transfers out to other funds (740,173) (362,450) (27,729) - (1,130,352)
Transfers in from other funds 28,820 13,278 3,320 - 45,418
Net cash from noncapital financing activities (711,353) (349,172) (24,409) - (1,084,934)
Cash flows from capital and related financing activities:
Purchase and construction of capital assets (263,005) (158,270) (86,178) - (507,453)
Proceeds received from sales of capital assets - - 4,320 - 4,320
Principal paid on revenue bonds (987,559) - - - (987,559)
Proceeds received from capitalized leases 237,448 158,270 49,932 - 445,650
Principal paid on capitalized leases (145,271) (291,124) (19,235) - (455,630)
Proceeds received from intergovernmental activities 23,516 - - - 23,516
Interest expense (394,989) (12,959) (990) - (408,938)
Net cash from capital and related financing activities (1,529,860) (304,083) (52,151) - (1,886,094)
Cash flows from investing activities:
Interest on investments 235,489 53,098 19,397 19,696 327,680
Net cash from investing activities 235,489 53,098 19,397 19,696 327,680
Net change in cash and cash equivalents 432,956 (144,550) 239,558 (4,304) 523,660
Cash and cash equivalents, beginning of year 12,582,993 3,380,420 1,003,184 865,034 17,831,631
Cash and cash equivalents, end of year 13,015,949$ 3,235,870$ 1,242,742$ 860,730$ 18,355,291$
Reconciliation of operating income (loss) to net
cash from operating activities:
Operating income (loss)989,450$ (163,504)$ 58,275$ (24,000)$ 860,221$
Adjustments to reconcile operating income (loss) to net cash
from operating activities:
Depreciation and amortization 1,715,817 552,325 189,626 - 2,457,768
Bad debt expense 33,041 - - - 33,041
Change in assets and liabilities:
(Increase) decrease in accounts receivable 146,000 (64,186) 600 - 82,414
Increase in inventory (4,705) - - - (4,705)
Increase (decrease) in accounts payable 140,321 (9,629) (443) - 130,249
Decrease in retainage payable (769,156) - - - (769,156)
Increase in customer deposits 20,122 - - - 20,122
Increase (decrease) in accrued salaries, wages, and
employee benefits (22,551) (25,442) 6,936 - (41,057)
Decrease in unearned revenue (23,516) - - - (23,516)
Pension deferred inflows / outflows and liability 213,857 166,043 41,727 - 421,627
Total Adjustments 1,449,230 619,111 238,446 - 2,306,787
Net cash from operating activities 2,438,680$ 455,607$ 296,721$ (24,000)$ 3,167,008$
Noncash investing, capital and financing activities:
Contributed capital assets 243,629$ -$ 709,788$ -$ 953,417$
Capital assets contributed in prior year 1,397,433 - 726,619 - 2,124,052
Loss on disposal of assets 3,855 - - - 3,855
Total noncash investing, capital and financing 1,644,917$ -$ 1,436,407$ -$ 3,081,324$
Reconciliation of cash and cash equivalents:
Equity in pooled cash 2,209,186$ 1,074,751$ 454,100$ -$ 3,738,037$
Investments2,643,206 2,161,119 788,642 - 5,592,967
Current restricted assets2,449,820 - - 860,730 3,310,550
Non-current restricted assets5,713,737 - - - 5,713,737
Cash and cash equivalents 13,015,949$ 3,235,870$ 1,242,742$ 860,730$ 18,355,291$
Major Funds
The notes to the financial statements are an integral part of this statement.
30
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2019
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 THE FINANCIAL STATEMENTS
DECEMBER 31, 2019
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 60 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 THE FINANCIAL STATEMENTS
DECEMBER 31, 2019
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 accounting principles generally accepted
in the United States of America (“U.S. GAAP”) 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 $5,000. Management can also over-expend appropriations, with the City
Administrator’s approval, at the line item and department level, as long as the total expenditures or
expenses do not exceed appropriations of the functional area.
Formal budgetary integration is employed as a management control device. A budget is legally adopted
annually for the General Fund on a basis consistent with U.S. GAAP.
Annual budgets are not adopted for the Special Revenue Funds or the Capital Projects Funds.
These funds budget on a project or activity basis instead of an annual operating cycle basis. Budgets
for the enterprise funds are legally adopted annually on a basis consistent with U.S. GAAP except that
depreciation is not a budgeted item.
33
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2019
Note 1—Summary of significant accounting policies (continued)
Budgeted amounts are as originally adopted or as amended by the City Council or the City
Administrator. There were no individual amendments to the original appropriations, which were adopted
and consisted of transferring amounts within departmental accounts. No supplemental appropriations
were necessary during the year.
The City employs the use of encumbrance accounting during the year. All encumbrances lapse at the
end of the year.
Unexpended appropriations lapse at the end of the year except that a whole or part of appropriations
provided in the budget for capital or betterment outlays of any department or activity remaining
unexpended at the close of the fiscal year is held available for the following year.
Excess of Expenditures over Appropriations – For the year ended December 31, 2019, expenditures exceeded
budget in the General Fund for the following functions:
BudgetActual
Over (Under)
Budget
Public safety 8,062,283$ 8,874,479$ 812,196$
Capital lease payments - public safety 533,791 523,150 (10,641)
8,596,074$ 9,397,629$ 801,555$
Public works 1,574,650$ 1,708,320$ 133,670$
Capital lease payments - public works 89,721 87,437 (2,284)
1,664,371$ 1,795,757$ 131,386$
Parks, recreation and tourism 2,767,373$ 2,901,779$ 134,406$
Capital lease payments - parks, recreation, and tourism20,841 20,471 (370)
2,788,214$ 2,922,250$ 134,036$
The over-expenditures for Public Works and Parks, Recreation and Tourism were materially in line with
budgeted expenditures for the year and were due to the purchase of vehicles and equipment with capital lease
proceeds as well as increased expenditures for athletic and special programs offset by increased revenues for
these programs. 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 THE FINANCIAL STATEMENTS
DECEMBER 31, 2019
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.
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
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.
35
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2019
Note 1—Summary of significant accounting policies (continued)
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.
During the year ended December 31, 2019, the City implemented GASB Statement No. 88, Certain Disclosures
Related to Debt, including Direct Borrowings and Direct Placements and, therefore, includes both long-term
debt (such as bonds, notes, and loans) and other long-term liabilities (such as compensated absences, leases
payable, and claims and judgements) in their debt disclosures. Refer to Note 6 for disclosures.
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 THE FINANCIAL STATEMENTS
DECEMBER 31, 2019
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% of the then current general fund budget to the nearest $25,000.
Stormwater Utility Fund: 20% of the then current stormwater utility fund budget to the nearest $25,000.
Sanitation Services Fund: 20% of the then current sanitation services fund budget to the nearest
$25,000.
Street Improvements Fund: $100,000.
Water and Sewer Fund: 20% of the then current water and sewer fund budget to the nearest $25,000.
37
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2019
Note 2—Equity in pooled cash and investments, deposits, and investments
As of December 31, 2019, the City’s cash and investments consisted of the following:
Maturities Fair Value
Daily 25,222,290$
Daily 9,697,239
199,990
35,119,519$
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
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 THE FINANCIAL STATEMENTS
DECEMBER 31, 2019
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, 2019, 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 LGIP’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% 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, 2019, the carrying amount of the City’s deposits was $9,697,239 and the bank balance was
$10,850,774. 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 THE FINANCIAL STATEMENTS
DECEMBER 31, 2019
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, 2019, 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 Standard & Poor and invest at least 99.5% 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
The City follows the Fair Value Measurements topic of GASB, 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, 2019 for its $25,222,290 investment in the
LGIP are valued at the net asset value. 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 $1.00.
40
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2019
Note 4—Capital assets
Capital asset activity for the year ended December 31, 2019 was as follows:
Governmental Activities
Balance Prior Period Balance
1/1/2019 ReclassAdjustment AdditionsDisposals12/31/2019
Capital assets, not being
depreciated:
Land10,051,486$ -$ -$ 278,905$ -$ 10,330,391$
Construction in progress 268,768 - - 950,628 - 1,219,396
Right-of-away 3,226,901 - 148,886 114,632 - 3,490,419
Total capital assets, not
being depreciated 13,547,155 - 148,886 1,344,165 - 15,040,206
Capital assets, being
depreciated:
Land improvements 17,097,175 203,770 - 2,040,014 - 19,340,959
Buildings 107,022,425 (1,125,092) - 292,901 - 106,190,234
Machinery and equipment2,162,043 83,342 - 628,004 (111,879) 2,761,510
Furniture and fixtures 1,554,539 3,106 - - - 1,557,645
Vehicles 7,818,070 (86,448) - 1,082,249 (367,785) 8,446,086
Infrastructure 25,374,916 921,322 838,023 989,613 - 28,123,874
Total capital assets,
being depreciated 161,029,168 - 838,023 5,032,781 (479,664) 166,420,308
Less accumulated
depreciation for:
Land improvements (9,706,096) 307,571 - (661,160) - (10,059,685)
Buildings (11,681,559) (314,891) - (2,535,893) 7,324 (14,525,019)
Machinery and equipment(1,903,133) 110,640 - (147,329) 111,879 (1,827,943)
Furniture and fixtures (1,290,679) (2,430) - (108,382) - (1,401,491)
Vehicles (4,516,057) (3,083) - (671,458) 367,785 (4,822,813)
Infrastructure (13,257,726) (97,807) (12,611) (945,084) - (14,313,228)
Total accumulated
depreciation (42,355,250) - (12,611) (5,069,306) 486,988 (46,950,179)
Total capital assets
being depreciated, net118,673,918 - 825,412 (36,525) 7,324 119,470,129
Governmental activities
capital assets, net 132,221,073$ -$ 974,298$ 1,307,640$ 7,324$ 134,510,335$
41
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2019
Note 4—Capital assets (continued)
Governmental activity depreciation expense was charged to functions as follows:
General government 2,174,379$
Public safety 805,165
Public works 1,282,282
Recreation and parks 807,480
5,069,306$
Business-Type Activities
BalancePrior PeriodBalance
1/1/2019AdjustmentAdditionsDisposals12/31/2019
Capital assets, not being
depreciated:
Land824,058$ -$ -$ -$ 824,058$
Construction in progress2,075 - - - 2,075
Easements62,760 - - - 62,760
Total capital assets, not
being depreciated888,893 - - - 888,893
Capital assets, being
depreciated:
Buildings24,178,306 - - - 24,178,306
Machinery and equipment3,059,659 - 261,192 (46,823) 3,274,028
Vehicles4,551,499 - 208,202 (51,306) 4,708,395
System improvements71,583,717 2,166,110 999,590 - 74,749,417
PSA capital4,667,405 - - - 4,667,405
Total capital assets,
being depreciated108,040,586 2,166,110 1,468,984 (98,129) 111,577,551
Less accumulated
depreciation for:
Buildings(3,317,320) - (685,235) - (4,002,555)
Machinery and equipment(2,153,819) - (206,651) 34,853 (2,325,617)
Vehicles(3,599,310) - (346,464) 51,307 (3,894,467)
System improvements(17,720,013) (42,058) (1,101,412) - (18,863,483)
PSA capital(2,819,028) - (115,506) - (2,934,534)
Total accumulated
depreciation(29,609,490) (42,058) (2,455,268) 86,160 (32,020,656)
Total capital assets
being depreciated, net78,431,096 2,124,052 (986,284) (11,969) 79,556,895
Business-type activities
capital assets, net 79,319,989$ 2,124,052$ (986,284)$ (11,969)$ 80,445,788$
42
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2019
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 GASB 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, 2019:
GovernmentalWater and
FundsWastewaterSanitationStormwaterTotal
Machinery and equipment 560,660$ 414,902$ 93,172$ 45,412$ 1,114,146$
Vehicles 2,064,397 34,637 713,604 49,932 2,862,570
2,625,057 449,539 806,776 95,344 3,976,716
Accumulated depreciation (767,225) (48,021) (246,499) (9,065) (1,070,810)
Carry value 1,857,832$ 401,518$ 560,277$ 86,279$ 2,905,906$ 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, 2019:
GovernmentalWater and
Year Ending December 31,FundsWastewaterSanitationStormwaterTotal
512,425$ 126,088$ 183,137$ 26,614$ 848,264$
400,823 98,628 143,252 20,817 663,520
294,256 72,405 105,165 15,283 487,109
163,486 40,228 58,429 8,491 270,634
Total minimum lease payments 1,370,990 337,349 489,983 71,205 2,269,527
Amount representing interest (66,964) (18,787) (23,248) (4,077) (113,076)
Present value of minimum
lease payments 1,304,026$ 318,562$ 466,735$ 67,128$ 2,156,451$
Business‐Type Funds
2020
2021
2022
2023
43
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2019
Note 6—Long‐term debt and other long‐term liabilities
Changes in Long-Term Debt and Other Long-Term Liabilities
Long-term liability activity for the year ended December 31, 2019 was as follows:
Balance BalanceDue Within
1/1/2019AdditionsReductions12/31/2019One 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 leases 1,174,089 838,111 (708,174) 1,304,026 518,303
Other liabilities:
Compensated absences 671,978 471,296 (474,631) 668,643 484,641
71,321,067$ 1,309,407$ (1,182,805)$ 71,447,669$ 1,002,944$
Revenue Bond Payable – Revenue bond payable (recorded as a liability for governmental activities) at
December 31, 2019 is comprised of the following:
In January 2015, the 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 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, 2019 are $56,398,679. The bond matures
in November 2048. Principal payments are due annually in November beginning in 2020. Interest payments are
made bi-annually based on the all-in true interest cost of the revenue bond transaction. The bond is
collateralized by the constructed assets described above.
44
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2019
Note 6—Long‐term debt and other long‐term liabilities (continued)
2017B Revenue Bond Issue
PrincipalInterestTotal
650,000$ 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
855,000 3,136,077 3,991,077
2025-204865,740,000 49,878,685 115,618,685
69,450,000$ 65,778,459$ 135,228,459$
2024
2020
2021
2022
2023
Long-term liability activity for the year ended December 31, 2019 was as follows:
Balance BalanceDue Within
1/1/2019AdditionsReductions12/31/2019One Year
Business-type Activities:
Revenue bonds payable:
Revenue bonds19,877,539$ -$ (987,559)$ 18,889,980$ 798,149$
Capital leases:
Capitalized leases862,405 445,650 (455,630) 852,425 277,572
Other liabilities:
Compensated absences317,715 200,608 (247,272) 271,051 271,051
21,057,659$ 646,258$ (1,690,461)$ 20,013,456$ 1,346,772$
Revenue Bonds Payable – Revenue bonds payable (recorded as a liability in the Water and Wastewater
System Fund) at December 31, 2019 are comprised of the following individual issues:
10,290,474$
8,599,506
18,889,980$
$13,000,000WaterandWastewater(Series2015A)serialbonds,originallydated
February17,2015(SCDrinkingWaterRevolvingLoanFundNumber
X3-065-14-0210003-02)duein80quarterlyinstallmentsof$197,561beginning
March1,2017;interestat2.0%.TotaldrawsasofDecember31,2019are
$10,094,688. Total draws remaining are $2,905,312.
$13,000,000WaterandWastewater(Series2014A)serialbonds,originallydated
March20,2014(SCDrinkingWaterRevolvingLoanFundNumber3-060-14-0210003-
01)duein80quarterlyinstallmentsof$196,146beginningMay1,2015through
February1,2035;interestat2.0%.TotaldrawsasofDecember31,2019are
$12,906,882.Therearenoremainingdraws.Theprojectbudgetwasamendedon
April 6, 2017 to $12,906,882.
45
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2019
Note 6—Long‐term debt and other long‐term liabilities (continued)
2014A Revenue Bond Issue
PrincipalInterestTotal
583,131$ 201,454$ 784,585$
594,881 189,704 784,585
606,868 177,717 784,585
619,097 165,488 784,585
631,573 153,013 784,586
2025-20357,254,924 787,078 8,042,002
10,290,474$ 1,674,454$ 11,964,928$
2015A Revenue Bond Issue
PrincipalInterestTotal
215,018$ 66,355$ 281,373$
449,303 164,334 613,637
458,357 155,280 613,637
467,593 146,044 613,637
477,015 136,622 613,637
2025-20366,532,220 831,430 7,363,650
8,599,506$ 1,500,065$ 10,099,571$
2024
2020
2024
2020
2021
2022
2023
2021
2022
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 THE FINANCIAL STATEMENTS
DECEMBER 31, 2019
Note 6—Long‐term debt and other long‐term liabilities (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% of annual net system charges for services.
Principal and interest paid in 2019 totaled $1,377,270. Total net charges for services for the year were
$10,151,786.
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 THE FINANCIAL STATEMENTS
DECEMBER 31, 2019
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 U.S. 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 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 subdivisions of government, and individuals newly elected to the South Carolina
General Assembly at or after the 2012 general election.
The 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 THE FINANCIAL STATEMENTS
DECEMBER 31, 2019
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 1%
or $500 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 1% or
$500 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 85%, 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
85%. 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 85%, 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 85%.
49
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2019
Note 8—Pension plans (continued)
The Retirement System Funding and Administration Act establishes a ceiling on employee contribution rates at
9% and 9.75% for SCRS and PORS, respectively. The employer contribution rates will continue to increase
annually by 1% through July 1, 2022. The legislation’s ultimate scheduled employer rate is 18.56% for SCRS
and 21.24% for PORS. The amortization period is scheduled to be reduced one year for each of the next 10
years to a 20-year amortization period.
SCRS – The City’s contributions to SCRS for the fiscal year ending December 31, 2019 were $1,235,059, equal
to the required contributions for each year.
PORS – The City’s contributions to PORS for the fiscal year ending December 31, 2019 were $702,156, 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, 2018. The net pension liability of each defined benefit pension plan
was therefore determined based on the July 1, 2018 actuarial valuations, using membership data as of July 1,
2018, projected forward to the end of the fiscal year, and financial information of the pension trust funds as of
June 30, 2019, 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, 2019, the City reported $17,638,284 and $7,744,895 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, 2019, the City’s proportionate share was 0.077245% for SCRS and 0.270239% for
PORS.
50
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2019
Note 8—Pension plans (continued)
Deferred Outflows/(Inflows) of Resources – For the year ended December 31, 2019, the City recognized
pension expense of $1,261,138 and $1,137,752 for SCRS and PORS, respectively. At December 31, 2019, the
City reported deferred outflows and deferred inflows of resources for each of the respective plans:
Deferred Deferred Deferred Deferred
Outflows of Inflows of Outflows of Inflows of
ResourcesResourcesResourcesResources
Netdifferencebetweenprojectedand
actualearningsonpensionplan
investments 552,880$ 396,722$ 316,313$ 218,113$
Netdifferencebetweenexpectedand
actual pension plan experience 12,125 126,678 159,251 57,240
Changesinproportionanddifferences
betweenEmployercontributionsand
proportionate share of contributions 149,173 1,148 45,600 216,158
Assumption changes 355,437 - 307,124 -
Employer contributions subsequent to
the measurement date 636,470 - 362,527 -
1,706,085$ 524,548$ 1,190,815$ 491,511$
SCRS PORS
The deferred outflows of resources of $636,470 and $362,527 for SCRS and PORS, respectively, related to
pensions resulting from the City’s contributions subsequent to the measurement date, will be recognized as a
reduction of the net pension liability in the year ended December 31, 2020. The following schedule reflects the
amortization of the net balance of remaining deferred outflows/(inflows) of resources at December 31, 2019.
Average remaining service lives of all employees provided with pensions through the pension plans for the June
30, 2019 measurement period was 4.026 years for SCRS and 4.217 years for PORS.
Measurement period ended June 30, 2019
SCRSPORS
2020 501,555$ 141,085$
2021 (95,698) 97,454
2022 80,395 53,437
2023 58,815 44,801
Net balance deferred outflows/(inflows) of resources545,067$ 336,777$
Amortization of remaining deferred outflows/(inflows)
51
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2019
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 ended June 30, 2015.
The June 30, 2019, total pension liability (“TPL”), NPL, and sensitivity information shown PEBA’s report were
determined by their consulting actuary Gabriel, Roeder, Smith and Company and are based on an actuarial
valuation performed as of July 1, 2018. The total pension liability was rolled-forward from the valuation date to
the plans’ fiscal year-end, June 30, 2019, using generally accepted actuarial principles.
The following table provides a summary of the actuarial assumptions and methods used as of June 30, 2019.
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
* Includes inflation of 2.25%
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 THE FINANCIAL STATEMENTS
DECEMBER 31, 2019
Note 8—Pension plans (continued)
Post-Retiree Mortality Assumptions
Former Job Class
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%
Males Females
2016 PRSC Males multiplied by 125%2016 PRSC Females multiplied by 111%
2016 PRSC Females multiplied by 111%
Long-Term Expected Rate of Return – The long-term expected rate of return on pension plan investments is
based upon 30-year capital market assumptions. Long-term expected rates of return represent assumptions
developed using an arithmetic building block approach primarily based on consensus expectations and market
based inputs. Expected returns are net of investment fees.
The expected returns, along with the expected inflation rate, form the basis for the target asset allocation
adopted at the beginning of the 2019 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% inflation
component.
Long‐Term
TargetExpected Real
AllocationRate of Return
Global Equity 51%3.61%
Real Assets 12%0.69%
Opportunistic 8%0.26%
Credit 15%0.64%
Rate Sensitive 14%0.21%
Total expected real return 100%5.41%
Inflation for actuarial purposes 2.25%
Total expected nominal return 7.66%
Asset Class
Discount Rate – The discount rate used to measure the TPL was 7.25%. 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 THE FINANCIAL STATEMENTS
DECEMBER 31, 2019
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%, as well as what the employers’ NPL would be if it were calculated using a
discount rate that is 1.00% lower (6.25%) or 1.00% higher (8.25%) than the current rate:
1%Current 1%
DecreaseDiscount RateIncrease
(6.25%)(7.25%)(8.25%)
SCRS 22,220,485$ 17,638,284$ 13,814,081$
PORS 10,496,164 7,744,895 5,490,904
Note 9—Interfund receivables, payables, and transfers
The following interfund transfers are reflected in the fund financial statements at December 31, 2019:
Transfer inAmount
General Fund Water and Wastewater Fund 740,173$
General Fund Sanitation Fund
General Fund Stormwater Fund
General Fund Capital Projects Fund
General Fund Nonmajor governmental funds
Capital Projects Fund General Fund
Nonmajor governmental funds General Fund
North Augusta Public Facility Corp.Nonmajor governmental funds
Water and Wastewater Fund Stormwater Fund
Water and Wastewater Fund Sanitation Fund 10,063
Water and Wastewater Fund Capital Projects Fund 17,705
Sanitation Fund Capital Projects Fund
Stormwater Fund Capital Projects Fund 3,320
3,871,392$
40,075
825,129
1,052
Transfer Out
352,387
76,354
13,278
26,677
23,725
1,741,454
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.
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.
54
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2019
Note 10—Risk management (continued)
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, 2019 are composed of the following:
Expended Through
Project December 31,
Authorization2019Commitment
Riverside Village Amphitheater 2,045,227$ 775,700$ 1,269,527$
2,045,227$ 775,700$ 1,269,527$ 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.
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.
55
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2019
Note 13—Tax abatements
As of December 31, 2019, 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, 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 five to six-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, 2019, the City received $37,859 for tax year 2018 as part of the
intergovernmental agreement with the County mentioned above.
Note 14—Restatement of net position
Correction of an error
The City has determined that restatements of beginning net position are required to reflect infrastructure assets
deeded to the City in prior years but not reflected on the City’s capital asset schedule. The effect of the prior
period restatement is summarized below and reflected in the government-wide financial statements.
GovernmentalBusiness‐type
ActivitiesActivities
Ending net position December 31, 2018 64,860,473$ 67,772,520$
Capital assets, not being depreciated 148,886 -
Capital assets, being depreciated 838,023 2,166,110
Accumulated depreciation (12,611) (42,058)
Beginning net position December 31, 2019 65,834,771$ 69,896,572$
56
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2019
Note 15—Subsequent events
In December 2019, an outbreak of a novel strain of coronavirus (COVID-19) emerged globally. There have
been mandates from federal, state, and local authorities requiring forced closures of non-essential businesses,
limiting person-to-person contact and public gatherings. The City has evaluated the impact of this outbreak on
their daily operations, noting reductions in revenue from parks, recreation, and tourism due to the current
limitations on public gatherings. The City will continue to monitor the situation and revisit the current budget for
any identified reductions. As of the date of this report, there is an estimated 4% reduction to parks, recreation,
and tourism revenues and expenditures for the year ended December 31, 2020.
On November 6, 2018, a favorable bond referendum was held in the City of North Augusta authorizing the City
to issue general obligation bonds not exceeding $10,250,000 as part of a favorable Capital Projects Sales Tax
referendum. These bonds were issued on March 19, 2020 to construct and equip a public safety headquarters.
Bond payments will be made from revenues collected from the capital projects sales tax.
The City has evaluated subsequent events through June 30, 2020, the date which the financial statements were
available to be issued. As of this date, other than the above mentioned, there were no material subsequent
events requiring adjustment to or disclosure in the financial statements for the year ended December 31, 2019.
57
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
REQUIRED SUPPLEMENTARY INFORMATION
DECEMBER 31, 2019
Schedule of the City’s Proportionate Share of the Net Pension Liability*
SCRS:
City's
Proportion
of the
Net Pension
Liability
City's
Proportionate
Share of the
Net Pension
Liability
City's
Covered
Payroll
City's Proportionate
Share of the Net
Pension Liability as a
Percentage of its
Covered Payroll
Plan Fiduciary Net
Position as a
Percentage of the
Total Pension
Liability
6/30/2015 0.08%14,301,301$ 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%
6/30/2019 0.08%17,638,284 8,150,277 216.41%54.40%
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%
6/30/2019 0.27%7,744,895 3,919,711 197.59%62.70%
*Schedule is intended to show information for 10 years. Additional years will be displayed as they become available.
58
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
REQUIRED SUPPLEMENTARY INFORMATION
DECEMBER 31, 2019
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
12/31/2010619,447$ (619,447)$ -$ 6,596,875$ 9.39%
12/31/2011616,283 (616,283) - 6,608,240 9.33%
12/31/2012656,333 (656,333) - 6,518,085 10.07%
12/31/2013700,473 (700,473) - 6,608,240 10.60%
12/31/2014752,690 (752,690) - 7,001,673 10.75%
12/31/2015818,535 (818,535) - 7,452,451 10.98%
12/31/2016835,163 (835,163) - 7,371,464 11.33%
12/31/2017975,309 (975,309) - 7,745,243 12.59%
12/31/20181,128,580 (1,128,580) - 8,024,995 14.06%
12/31/20191,235,059 (1,235,059) - 8,201,611 15.06%
PORS:
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
12/31/2010339,895$ (339,895)$ -$ 3,010,428$ 11.29%
12/31/2011354,152 (354,152) - 3,040,661 11.65%
12/31/2012374,823 (374,823) - 3,116,056 12.03%
12/31/2013374,823 (374,823) - 3,116,056 12.03%
12/31/2014432,698 (432,698) - 3,297,144 13.12%
12/31/2015492,613 (492,613) - 3,627,182 13.58%
12/31/2016504,306 (504,306) - 3,599,658 14.01%
12/31/2017575,300 (575,300) - 3,769,186 15.26%
12/31/2018655,814 (655,814) - 3,918,206 16.74%
12/31/2019702,156 (702,156) - 3,957,543 17.74%
59
OTHER SUPPLEMENTARY INFORMATION
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
SCHEDULE OF REVENUES AND EXPENDITURES COMPARED WITH BUDGET
GENERAL FUND
YEAR ENDED DECEMBER 31, 2019
2019
OriginalOver
and Final (Under)
BudgetActualBudget
Revenues:
Taxes:
Current7,185,560$ 7,423,020$ 237,460$
Delinquent 10,000 4,762 (5,238)
Penalties 55,000 66,665 11,665
Total Taxes 7,250,560 7,494,447 243,887
Licenses and Permits:
Business licenses 6,105,7705,886,386(219,384)
Building permits 300,000316,041 16,041
Electrical permits 20,000 20,735 735
Mechanical permits 18,000 21,758 3,758
Plumbing permits 12,000 11,532 (468)
Total Licenses and Permits 6,455,770 6,256,452 (199,318)
Fines and Forfeitures:
Public safety fines 1,070,000974,881(95,119)
Drug related fines 20,000 31,179 11,179
Total Fines and Forfeitures 1,090,000 1,006,060 (83,940)
Charges for Services:
Fire protection fees 63,000 42,815(20,185)
Customer street light fees 87,244 87,396 152
Municipal Center rentals 103,800 79,334(24,466)
Recreation fees
Special programs 29,600 31,660 2,060
Volleyball 5,880 5,270 (610)
Soccer 65,990 64,403 (1,587)
Miscellaneous 145,000122,096(22,904)
Basketball 51,300 43,368 (7,932)
Softball 29,820 29,898 78
Football 36,065 39,255 3,190
Baseball 55,420 71,458 16,038
Concession stand 150,000194,013 44,013
Community Center fees 64,800 71,530 6,730
Activities Center fees 164,035188,678 24,643
Recreation facilities rentals 24,000 42,638 18,638
Activities Center tournaments 241,000339,197 98,197
Total Charges for Services 1,316,954 1,453,009 136,055
(continued)
60
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
SCHEDULE OF REVENUES AND EXPENDITURES COMPARED WITH BUDGET
GENERAL FUND
YEAR ENDED DECEMBER 31, 2019
2019
OriginalOver
and Final (Under)
BudgetActualBudget
Intergovernmental:
State of South Carolina:
State shared revenue502,230 526,959 24,729
Accommodations tax44,000 45,655 1,655
Merchants' inventory tax 54,700 54,790 90
Local option sales tax 20,000 21,801 1,801
SCDOT traffic signals14,550 21,330 6,780
Law enforcement net grant10,000 2,788 (7,212)
Department of Justice grant146,521 2,002 (144,519)
Highway safety grant - 149,946 149,946
Aiken County FILOT33,000 37,859 4,859
Total Intergovernmental825,001 863,130 38,129
Miscellaneous:
Other376,417 555,731 179,314
Communication tower rental190,000 222,596 32,596
Interest earnings44,000 101,766 57,766
Total Miscellaneous610,417 880,093 269,676
Total Revenues17,548,702$ 17,953,191$ 404,489$
Expenditures:
General Government:
City Council -
Personal services:
Salaries and wages107,881$ 101,897$ (5,984)$
FICA 8,253 6,743 (1,510)
Employee retirement 13,357 13,504 147
Employee insurance 23,700 24,488 788
Workers' compensation3,1022,609(493)
Operating expenditures:
General supplies/postage4,0253,523(502)
Dues/training/travel13,5108,008(5,502)
Contracts/repairs1,000209(791)
Advertising300474 174
Professional Services4,0501,105(2,945)
Special department supplies2,8501,718(1,132)
Insurance1,2331,157(76)
Contingencies2,000500 (1,500)
Total 185,261 165,935 (19,326)
(continued)
61
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
SCHEDULE OF REVENUES AND EXPENDITURES COMPARED WITH BUDGET
GENERAL FUND
YEAR ENDED DECEMBER 31, 2019
2019
OriginalOver
and Final (Under)
BudgetActualBudget
General Government (continued):
City Administration -
Personal services:
Salaries and wages256,823192,250(64,573)
FICA 19,647 14,644 (5,003)
Employee retirement 38,678 28,857 (9,821)
Employee insurance 15,800 15,895 95
Workers' compensation 3,924 3,301 (623)
Operating expenditures:
Contributions 15,000 15,000 -
General supplies/postage 2,250 2,262 12
Dues/training/travel15,30017,5022,202
Data processing2,5001,605(895)
Contracts/repairs8,5004,919(3,581)
Professional services65,00023,296(41,704)
Insurance9,99311,6581,665
Contingencies93,92295,8301,908
Total 547,337 427,019 (120,318)
Justice and Law -
Personal services:
Salaries and wages122,526 127,550 5,024
FICA9,3739,326(47)
Employee retirement16,25816,258-
Employee insurance7,9007,94747
Workers' compensation3,5302,970(560)
Operating expenditures:
General supplies/postage500 16 (484)
State fees/fines565,986516,187(49,799)
Dues/training/travel4,9881,772(3,216)
Contracts and repairs10,80010,511(289)
Jury services2,0002,250250
Professional services22,72520,824(1,901)
Juvenile detention3,5001,000(2,500)
Insurance27,31325,630(1,683)
Total 797,399 742,241 (55,158)
(continued)
62
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
SCHEDULE OF REVENUES AND EXPENDITURES COMPARED WITH BUDGET
GENERAL FUND
YEAR ENDED DECEMBER 31, 2019
2019
OriginalOver
and Final (Under)
BudgetActualBudget
General Government (continued):
Community Promotion -
Operating expenditures:
Contributions48,200 47,200 (1,000)
Dues/training/travel5,9315,931 -
Special department supplies16,40019,1512,751
Insurance3,6563,431(225)
Total74,187 75,713 1,526
Finance -
Personal services:
Salaries and wages270,688 239,045 (31,643)
FICA20,70817,477(3,231)
Employee retirement40,76635,017(5,749)
Employee insurance31,60031,790190
Workers' compensation7,7899,6371,848
Unemployment insurance- 6,5206,520
Operating expenditures:
General supplies/postage10,00012,2222,222
Dues/training/travel2,2252,225-
Data processing11,00016,8535,853
Contracts/repairs17,70015,964(1,736)
Advertising1,000400 (600)
Professional services22,25020,528(1,722)
Insurance3,3123,108(204)
Total 439,038 410,786 (28,252)
City Buildings -
Operating expenditures:
General supplies/postage15,000 20,846 5,846
Auto operating- 3,147 3,147
Utility services260,000 320,464 60,464
Contracts/repairs80,000 77,857 (2,143)
Professional services6,70015,893 9,193
Insurance15,966 14,951 (1,015)
Total377,666 453,158 75,492
(continued)
63
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
SCHEDULE OF REVENUES AND EXPENDITURES COMPARED WITH BUDGET
GENERAL FUND
YEAR ENDED DECEMBER 31, 2019
2019
OriginalOver
and Final (Under)
BudgetActualBudget
General Government (continued):
Building Standards -
Personal services:
Salaries and wages259,141 246,249 (12,892)
FICA 19,824 17,896 (1,928)
Employee retirement 39,027 36,514 (2,513)
Employee insurance35,500 35,717 217
Workers' compensation7,267 6,113 (1,154)
Operating expenditures:
General supplies/postage3,000 3,072 72
Dues/training/travel3,925 3,782 (143)
Auto operating6,400 5,322 (1,078)
Data processing10,000 12,084 2,084
Contracts/repairs3,790 5,084 1,294
Uniforms/clothing1,550 1,456 (94)
Professional services24,000 2,016 (21,984)
Special department supplies2,600 3,244 644
Insurance1,959 1,838 (121)
Capital lease payments13,845 13,402 (443)
Capital outlay:
Vehicles- 22,00022,000
Total 431,828 415,789 (16,039)
Human Resources -
Personal services:
Salaries and wages125,918 129,782 3,864
FICA9,633 9,255 (378)
Employee retirement18,963 19,865 902
Employee insurance19,010 19,129 119
Workers' compensation3,284 2,763 (521)
Operating expenditures:
General supplies/postage2,200 1,966 (234)
Dues/training/travel2,900 3,456 556
Contracts/repairs1,850 1,552 (298)
Advertising9,600 8,970 (630)
Professional services38,999 33,777 (5,222)
Special department supplies 54,042 17,933 (36,109)
Insurance 5,452 5,116 (336)
Capital outlay:
Machines/equipment 9,000 5,813 (3,187)
Total 300,851 259,377 (41,474)
(continued)
64
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
SCHEDULE OF REVENUES AND EXPENDITURES COMPARED WITH BUDGET
GENERAL FUND
YEAR ENDED DECEMBER 31, 2019
2019
OriginalOver
and Final (Under)
BudgetActualBudget
General Government (continued):
Planning and Development -
Personal services:
Salaries and wages236,887 229,868 (7,019)
FICA18,12216,440(1,682)
Employee retirement 37,132 33,723 (3,409)
Employee insurance 27,650 27,816 166
Workers' compensation 5,075 4,269 (806)
Operating expenditures:
General supplies/postage 4,400 4,396 (4)
Dues/training/travel 8,000 1,728 (6,272)
Auto operating 5,492 762 (4,730)
Data processing 7,775 7,440 (335)
Contracts/repairs 4,800 2,641 (2,159)
Advertising 1,000 1,270 270
Professional services 38,000 - (38,000)
Special department supplies 6,600 2,930 (3,670)
Insurance 2,000 1,877 (123)
Capital lease payments 2,066 2,066 -
Capital outlay:
Office machines 8,000 5,813 (2,187)
Total 412,999 343,039 (69,960)
Property Maintenance -
Personal services:
Salaries and wages 606,348 622,807 16,459
Overtime pay 17,297 20,979 3,682
FICA 47,709 47,338 (371)
Employee retirement 93,921 94,721 800
Employee insurance 106,650110,195 3,545
Workers' compensation 16,837 16,999 162
Operating expenditures:
General supplies/postage 2,652 2,954 302
Dues/training/travel 1,935 2,753 818
Auto operating 39,927 39,058 (869)
Utility services 17,770 17,061 (709)
Contracts/repairs 30,900 49,599 18,699
Building materials/supplies 2,070 986 (1,084)
Uniforms/clothing 7,834 10,463 2,629
(continued)
65
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
SCHEDULE OF REVENUES AND EXPENDITURES COMPARED WITH BUDGET
GENERAL FUND
YEAR ENDED DECEMBER 31, 2019
2019
OriginalOver
and Final (Under)
BudgetActualBudget
General Government (continued):
Property Maintenance (continued)-
Professional services129,200 101,575 (27,625)
Special department supplies130,710 136,553 5,843
Insurance21,903 20,553 (1,350)
Capital lease payments49,673 46,668 (3,005)
Capital outlay:
Automotive equipment- 26,657 26,657
Machines/equipment65,750 65,057 (693)
Total1,389,086 1,432,976 43,890
Information Technology -
Personal services:
Salaries and wages251,837 259,097 7,260
FICA19,266 18,714 (552)
Employee retirement40,248 40,065 (183)
Employee insurance23,700 23,842 142
Workers' compensation7,257 6,105 (1,152)
Operating expenditures:
General supplies/postage4,900 2,429 (2,471)
Dues/training/travel3,350 1,890 (1,460)
Auto operating1,790 1,264 (526)
Utility services96,700 116,040 19,340
Data processing97,270 90,040 (7,230)
Contracts/repairs142,100 138,904 (3,196)
Insurance17,145 16,088 (1,057)
Capital lease payments5,894 5,534 (360)
Capital outlay:
Office machines68,600 66,363 (2,237)
Total780,057 786,375 6,318
Total General Government5,735,709$ 5,512,408$ (223,301)$
66
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
SCHEDULE OF REVENUES AND EXPENDITURES COMPARED WITH BUDGET
GENERAL FUND
YEAR ENDED DECEMBER 31, 2019
2019
OriginalOver
and Final (Under)
BudgetActualBudget
Public Safety -
Personal services:
Salaries and wages4,717,637$ 4,869,995$ 152,358$
Overtime pay 154,300 195,632 41,332
FICA 372,703 373,060 357
Employee retirement 840,318 828,213 (12,105)
Employee insurance703,100 708,936 5,836
Workers' compensation139,664 147,604 7,940
Operating expenditures:
General supplies/postage22,000 22,315 315
Dues/training/travel50,000 50,964 964
Auto operating234,270 248,426 14,156
Data processing115,000 123,446 8,446
Contracts/repairs265,000 283,315 18,315
Uniforms/clothing118,100 90,054 (28,046)
CVA expenditures36,320 22,228 (14,092)
LEN grant 10,000 5,378 (4,622)
Community policing34,400 29,566 (4,834)
NAPS drug related account 20,000 31,740 11,740
Professional services40,000 26,292 (13,708)
Special department supplies100,000 89,385 (10,615)
Insurance74,846 70,233 (4,613)
Capital lease payments533,791 523,150 (10,641)
Capital outlay:
Automotive equipment- 500,084 500,084
Machines and equipment 14,625 157,613 142,988
Total Public Safety8,596,074$ 9,397,629$ 801,555$
Public Works:
Engineering -
Personal services:
Salaries and wages160,671$ 155,299$ (5,372)$
FICA12,291 11,759 (532)
Employee retirement 24,197 22,741 (1,456)
Employee insurance23,700 23,842 142
Workers' compensation3,636 3,059 (577)
Operating expenditures:
General supplies/postage500 391 (109)
Dues/training/travel2,535 2,500 (35)
Auto operating2,455 2,851 396
Data processing3,600 3,254 (346)
(continued)
67
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
SCHEDULE OF REVENUES AND EXPENDITURES COMPARED WITH BUDGET
GENERAL FUND
YEAR ENDED DECEMBER 31, 2019
2019
OriginalOver
and Final (Under)
BudgetActualBudget
Public Works (continued):
Engineering (continued)-
Contracts/repairs2,280 2,304 24
Uniforms/clothing1,000 980 (20)
Advertising10049 (51)
Professional services- 360 360
Special department supplies1,500 1,696 196
Insurance1,498 1,406 (92)
Capital lease payments5,544 5,264 (280)
Capital outlay:
Automotive equipment- 24,970 24,970
Total245,507 262,725 17,218
Street Lighting and Traffic Signals -
Operating expenditures:
Dues/training/travel2,450 1,958 (492)
Utility services 435,500 456,77121,271
Contracts/repairs10,275 15,3265,051
Special department supplies16,00015,921(79)
Insurance23,72722,265(1,462)
Total487,952 512,241 24,289
Streets and Drains -
Personal services:
Salaries and wages460,094451,600(8,494)
Overtime pay 7,500 5,871 (1,629)
FICA 35,771 33,870 (1,901)
Employee retirement 70,420 67,099 (3,321)
Employee insurance 79,000 79,474 474
Workers' compensation 13,425 20,348 6,923
Operating expenditures:
General supplies/postage 500 652 152
Dues/training/travel 2,500 2,533 33
Auto operating 36,620 36,537 (83)
Contracts/repairs 19,160 19,513 353
Building materials/supplies 70,000 64,761 (5,239)
Uniforms/clothing 5,940 5,423 (517)
Professional services 16,270 22,681 6,411
Special department supplies 17,850 17,985 135
Insurance 11,685 10,965 (720)
(continued)
68
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
SCHEDULE OF REVENUES AND EXPENDITURES COMPARED WITH BUDGET
GENERAL FUND
YEAR ENDED DECEMBER 31, 2019
2019
OriginalOver
and Final (Under)
BudgetActualBudget
Public Works (continued):
Streets and Drains (continued)-
Capital lease payments84,177 82,173 (2,004)
Capital outlay:
Machines and equipment- 99,306 99,306
Total930,912 1,020,791 89,879
Total Public Works1,664,371$ 1,795,757$ 131,386$
Parks, Recreation, and Tourism:
Recreation -
Personal services:
Salaries and wages391,805$ 334,492$ (57,313)$
Overtime pay 6,000 5,839 (161)
FICA 30,432 25,235 (5,197)
Employee retirement 47,026 47,297 271
Employee insurance31,600 31,790 190
Workers' compensation11,333 9,690 (1,643)
Operating expenditures:
General supplies/postage2,400 1,117 (1,283)
Dues/training/travel9,940 11,247 1,307
Auto operating2,740 2,305 (435)
Contract/repairs7,750 13,067 5,317
Uniforms/clothing900 - (900)
Advertising1,300 1,444 144
Professional services73,000 147,462 74,462
Special department supplies6,000 6,061 61
Basketball program37,500 29,413 (8,087)
Softball program27,400 27,136 (264)
Football program30,000 36,035 6,035
Baseball program50,000 65,755 15,755
Soccer program55,000 48,526 (6,474)
Volleyball program4,200 3,767 (433)
Concession stand supplies91,000 119,854 28,854
Insurance17,551 16,469 (1,082)
Capital lease payments8,800 8,430 (370)
Capital outlay:
Furniture/fixtures1,500 - (1,500)
Machines/equipment13,000 56,990 43,990
Total958,177 1,049,421 91,244
(continued)
69
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
SCHEDULE OF REVENUES AND EXPENDITURES COMPARED WITH BUDGET
GENERAL FUND
YEAR ENDED DECEMBER 31, 2019
2019
OriginalOver
and Final (Under)
BudgetActualBudget
Parks, Recreation, and Tourism (continued):
Parks -
Personal services:
Salaries and wages205,577 191,207 (14,370)
Overtime pay 14,000 12,954 (1,046)
FICA 16,798 15,511 (1,287)
Employee retirement 33,068 30,100 (2,968)
Employee insurance 39,500 39,737 237
Workers' compensation 6,402 5,920 (482)
Operating expenditures:
General supplies/postage 1,500 201 (1,299)
Dues/training/travel 1,450 1,450 -
Auto operating 11,890 10,695 (1,195)
Utility services 20,500 13,297 (7,203)
Contracts/repairs32,600 37,194 4,594
Building materials/supplies13,500 7,990 (5,510)
Uniforms/clothing2,100 2,101 1
Professional services- 11,224 11,224
Special department supplies18,500 13,418 (5,082)
Insurance5,283 4,957 (326)
Capital lease payments12,041 12,041 -
Capital outlay:
Park improvements30,000 - (30,000)
Total464,709 409,997 (54,712)
Community Center -
Personal services:
Salaries and wages78,717 80,652 1,935
Overtime pay 2,000 454 (1,546)
FICA 6,175 6,184 9
Employee retirement 12,156 11,943 (213)
Employee insurance 15,800 15,895 95
Workers' compensation 2,325 16,783 14,458
Operating expenditures:
General supplies/postage 2,800 235 (2,565)
Auto operating 310 240 (70)
Utility services 23,000 22,253 (747)
Contracts/repairs 16,200 17,073 873
Uniforms/clothing 700 227 (473)
Advertising 3,000 2,904 (96)
Special department supplies 10,000 5,793 (4,207)
Insurance 2,896 2,718 (178)
Total 176,079 183,354 7,275
(continued)
70
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
SCHEDULE OF REVENUES AND EXPENDITURES COMPARED WITH BUDGET
GENERAL FUND
YEAR ENDED DECEMBER 31, 2019
2019
OriginalOver
and Final (Under)
BudgetActualBudget
Parks, Recreation, and Tourism (continued):
RVP Activities Center -
Personal services:
Salaries and wages344,533 346,806 2,273
Overtime pay 10,000 10,010 10
FICA 27,122 26,463 (659)
Employee retirement 53,393 53,174 (219)
Employee insurance55,300 55,632 332
Workers' compensation10,054 8,458 (1,596)
Operating expenditures:
General supplies/postage15,500 14,253 (1,247)
Dues/training/travel1,400 1,396 (4)
Auto operating1,700 492 (1,208)
Contracts/repairs73,300 124,197 50,897
Uniforms/clothing1,400 134 (1,266)
Advertising2,300 525 (1,775)
Tournaments/special events150,000 225,445 75,445
Special department supplies29,500 14,931 (14,569)
Insurance14,917 13,998 (919)
Capital outlay:
Furniture/fixtures1,500 - (1,500)
Total791,919 895,914 103,995
(continued)
71
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
SCHEDULE OF REVENUES AND EXPENDITURES COMPARED WITH BUDGET
GENERAL FUND
YEAR ENDED DECEMBER 31, 2019
2019
OriginalOver
and Final (Under)
BudgetActualBudget
Parks, Recreation, and Tourism (continued):
Tourism -
Personal services:
Salaries and wages126,116 127,796 1,680
Overtime pay 5,000 4,970 (30)
FICA 10,030 10,084 54
Employee retirement 19,746 19,560 (186)
Employee insurance 23,700 23,842 142
Workers' compensation 3,851 3,240 (611)
Operating expenditures:
Contributions 12,150 12,150 -
General supplies/postage 8,000 4,849 (3,151)
Data processing 1,100 1,090 (10)
Uniforms/clothing 1,000 160 (840)
Advertising - 47 47
Event and festival supplies 155,000 150,347 (4,653)
Special department supplies 22,000 16,386 (5,614)
Insurance 9,637 9,043 (594)
Total 397,330 383,564 (13,766)
Total Parks, Recreation, and Tourism 2,788,214$ 2,922,250$ 134,036$
Total Expenditures 18,784,368$ 19,628,044$ 843,676$
72
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
DECEMBER 31, 2019
Total
Capital Special Nonmajor
ProjectsRevenue Governmental
Funds Funds Funds
ASSETS
Equity in pooled cash 418,126$ 435,525$ 853,651$
Investments315,970 871,870 1,187,840
Accounts receivable- 62,133 62,133
Grants receivable31,461 - 31,461
Restricted cash and investments846,088 76,400 922,488
Total Assets 1,611,645$ 1,445,928$ 3,057,573$
LIABILITIES
Accounts payable 26,093$ 34,479$ 60,572$
Accrued salary and wages - 845 845
Unearned revenue - assessment fees 83,772 - 83,772
Total Liabilities 109,865 35,324 145,189
FUND BALANCES
Fund balances:
Restricted for:
Capital projects 846,045 - 846,045
Public safety (Fire Division)- 137,464 137,464
Special projects - 1,260,773 1,260,773
Committed for:
Capital projects 621,597 - 621,597
Parks, recreation and tourism- 12,367 12,367
Assigned for:
Capital projects 34,138 - 34,138
Total Fund Balances 1,501,780 1,410,604 2,912,384
Total Liabilities and Fund Balances 1,611,645$ 1,445,928$ 3,057,573$
73
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
COMBINING BALANCE SHEET
NONMAJOR CAPITAL PROJECTS FUNDS
DECEMBER 31, 2019
Sales Sales Street TaxTransportation
Tax Tax IIImprovementsIncrementImprovement
Fund Fund Fund Fund Fund Total
ASSETS
Equity in pooled cash -$ -$ 310,071$ 37,911$ 70,144$ 418,126$
Investments - - 205,643 1,497 108,830 315,970
Grants receivable - - 31,461 - - 31,461
Restricted cash and investments 110,719 635,369 100,000 - - 846,088
Total Assets 110,719$ 635,369$ 647,175$ 39,408$ 178,974$ 1,611,645$
LIABILITIES
Accounts payable -$ 43$ 26,050$ -$ -$ 26,093$
Unearned revenue - assessment fees - - - - 83,772 83,772
Total Liabilities - 43 26,050 - 83,772 109,865
FUND BALANCES
Fund balances:
Restricted for:
Capital projects 110,719 635,326 100,000 - - 846,045
Committed for:
Capital projects - - 491,846 39,408 90,343 621,597
Assigned for:
Capital projects- - 29,279 - 4,859 34,138
Total Fund Balances 110,719 635,326 621,125 39,408 95,202 1,501,780
Total Liabilities and Fund Balances 110,719$ 635,369$ 647,175$ 39,408$ 178,974$ 1,611,645$
74
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
COMBINING BALANCE SHEET
NONMAJOR SPECIAL REVENUE FUNDS
DECEMBER 31, 2019
Riverfront/
Central Core
Accommodations RecreationFireman's Redevelopment
Fund Fund Fund Fund Total
ASSETS
Equity in pooled cash 148$ 12,943$ -$ 422,434$ 435,525$
Investments 136,042 - - 735,828 871,870
Accounts receivable - - 62,133 - 62,133
Restricted cash and investments - - 76,400 - 76,400
Total Assets 136,190$ 12,943$ 138,533$ 1,158,262$ 1,445,928$
LIABILITIES
Accounts payable -$ 576$ 1,069$ 32,834$ 34,479$
Accrued salary and wages - - - 845 845
Total Liabilities - 576 1,069 33,679 35,324
FUND BALANCES
Fund balances:
Restricted for:
Public safety (Fire Division)- - 137,464 - 137,464
Special projects 136,190 - - 1,124,583 1,260,773
Committed for:
Parks, recreation and tourism - 12,367 - - 12,367
Total Fund Balances 136,190 12,367 137,464 1,124,583 1,410,604
Total Liabilities and Fund Balances 136,190$ 12,943$ 138,533$ 1,158,262$ 1,445,928$
75
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
COMBINING STATEMENTS OF REVENUES, EXPENDITURES, AND CHANGES IN
FUND BALANCES ‐ NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED DECEMBER 31, 2019
Total
Capital SpecialNonmajor
ProjectsRevenueGovernmental
FundsFundsFunds
Revenues:
Ad valorem property taxes 804,992$ -$ 804,992$
Local hospitality and accommodations taxes - 2,017,221 2,017,221
Intergovernmental 282,789 174,098 456,887
Interest earnings 55,402 18,622 74,024
Miscellaneous - 2,630 2,630
Total Revenues 1,143,183 2,212,571 3,355,754
Expenditures:
Current:
General government 896 - 896
Public safety - 57,844 57,844
Public works 20,198 - 20,198
Recreation and parks - 376,511 376,511
Capital outlay 1,828,449 427,004 2,255,453
Total Expenditures 1,849,543 861,359 2,710,902
Other Financing Sources (Uses):
Transfers in - 23,725 23,725
Transfers out (804,991) (976,538) (1,781,529)
Total Other Financing Sources (Uses)(804,991) (952,813) (1,757,804)
Net change in fund balance (1,511,351) 398,399 (1,112,952)
Fund balance, beginning of year 3,013,131 1,012,205 4,025,336
Fund balance, end of year 1,501,780$ 1,410,604$ 2,912,384$
76
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
COMBINING STATEMENTS OF REVENUES, EXPENDITURES, AND CHANGES IN
FUND BALANCES ‐ NONMAJOR CAPITAL PROJECTS FUNDS
YEAR ENDED DECEMBER 31, 2019
Sales Sales Street TaxTransportation
Tax Tax IIImprovementsIncrementImprovement
Fund Fund Fund Fund Fund Total
Revenues:
Ad valorem property taxes -$ -$ -$ 804,992$ -$ 804,992$
Intergovernmental - - 282,789 - - 282,789
Interest earnings 2,492 18,750 12,629 2,479 19,052 55,402
Total Revenues 2,492 18,750 295,418 807,471 19,052 1,143,183
Expenditures:
Current:
General government- - - 896 - 896
Public works- - 20,198- - 20,198
Capital outlay- 732,116 366,074 - 730,259 1,828,449
Total Expenditures- 732,116 386,272 896 730,259 1,849,543
Other Financing Sources (Uses):
Transfers out - - - (804,991) - (804,991)
Total Other Financing Sources (Uses)- - - (804,991) - (804,991)
Net change in fund balance2,492 (713,366) (90,854) 1,584 (711,207) (1,511,351)
Fund balance, beginning of year108,227 1,348,692 711,979 37,824 806,409 3,013,131
Fund balance, end of year110,719$ 635,326$ 621,125$ 39,408$ 95,202$ 1,501,780$
77
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
COMBINING STATEMENTS OF REVENUES, EXPENDITURES, AND CHANGES IN
FUND BALANCES ‐ NONMAJOR SPECIAL REVENUE FUNDS
YEAR ENDED DECEMBER 31, 2019
Riverfront/
Central Core
Accommodations RecreationFireman'sRedevelopment
Fund Fund Fund Fund Total
Revenues:
Local hospitality and accommodations taxes -$ -$ -$ 2,017,221$ 2,017,221$
Intergovernmental 111,308 - 62,790 - 174,098
Interest earnings 1,157 40 978 16,447 18,622
Miscellaneous - 2,630 - - 2,630
Total Revenues 112,465 2,670 63,768 2,033,668 2,212,571
Expenditures:
Current:
Public safety- - 57,844 - 57,844
Recreation and parks- - - 376,511 376,511
Capital outlay- - - 427,004 427,004
Total Expenditures- - 57,844 803,515 861,359
Other Financing Sources (Uses):
Transfers in 23,725 - - - 23,725
Transfers out- - - (976,538) (976,538)
Total Other Financing Sources (Uses)23,725 - - (976,538) (952,813)
Net change in fund balance136,190 2,670 5,924 253,615 398,399
Fund balance, beginning of year- 9,697 131,540 870,968 1,012,205
Fund balance, end of year136,190$ 12,367$ 137,464$ 1,124,583$ 1,410,604$
78
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
SCHEDULE OF REVENUES AND EXPENSES ‐ BUDGETED AND ACTUAL
ENTERPRISE FUND ‐ WATER AND WASTEWATER SYSTEM
YEAR ENDED DECEMBER 31, 2019
2019
OriginalOver
and Final (Under)
BudgetActualBudget
Operating Revenues:
Water sales3,269,029$ 3,563,223$ 294,194$
Sewer sales6,296,027 6,387,334 91,307
Water tap fees108,824 58,375 (50,449)
Sewer tap fees166,176 128,148 (38,028)
Fire protection fees11,841 14,706 2,865
Other436,875519,96583,090
Total Operating Revenues10,288,772 10,671,751 382,979
Operating Expenses:
Utilities Finance557,923 615,040 57,117
Utilities Administration521,060 503,994 (17,066)
Water Operations and Maintenance903,663 817,673 (85,990)
Water Production and Treatment1,609,557 1,548,867 (60,690)
Wastewater Operations and Maintenance4,277,817 4,480,910 203,093
Depreciation and amortization- 1,715,817 1,715,817
Total Operating Expenses7,870,020 9,682,301 1,812,281
Nonoperating Revenues (Expenses):
Intergovernmental- 23,516 23,516
Interest earnings20,000 235,489 215,489
Interest expense and fiscal charges- (394,989) (394,989)
Loss on sale of capital assets - (3,855) (3,855)
Total Nonoperating Revenues (Expenses):20,000 (139,839) (159,839)
Income before contributions and operating transfers2,438,752 849,611 (1,589,141)
Capital contributions- 243,629 243,629
Transfers in28,820 28,820 -
Transfers out(2,175,173) (740,173)1,435,000
Change in net position292,399$ 381,887$ 89,488$
79
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
SCHEDULE OF OPERATING EXPENSES ‐ BUDGETED AND ACTUAL
ENTERPRISE FUND ‐ WATER AND WASTEWATER SYSTEM
YEAR ENDED DECEMBER 31, 2019
2019
OriginalOver
and Final (Under)
BudgetActualBudget
Utilities Finance:
Personal services:
Salaries and wages202,739$ 211,605$ 8,866$
FICA15,510 14,931 (579)
Employee retirement30,533 55,514 24,981
Employee insurance39,500 39,737 237
Workers' compensation6,146 5,170 (976)
Operating expenses:
General supplies/postage84,000 95,737 11,737
Dues/training/travel3,800 2,420 (1,380)
Data processing85,114 105,350 20,236
Contracts and repairs26,500 24,668 (1,832)
Professional services22,225 16,652 (5,573)
Special department supplies500 497 (3)
Insurance10,356 9,718 (638)
Bad debts31,000 33,041 2,041
Total Utilities Finance557,923 615,040 57,117
Utilities Administration:
Personal services:
Salaries and wages312,123284,841(27,282)
Overtime pay 9,900 4,592 (5,308)
FICA 24,566 22,264 (2,302)
Employee retirement 48,361 80,691 32,330
Employee insurance 51,350 51,094 (256)
Workers' compensation 11,056 9,301 (1,755)
Operating expenses:
General supplies/postage 3,464 4,260 796
Dues/training/travel 6,057 6,239 182
Auto operating 11,788 11,699 (89)
Utility services11,642 10,725 (917)
Contracts and repairs10,93610,295(641)
Building material400 403 3
Uniforms and clothing2,506 2,268 (238)
Professional services2,779546 (2,233)
Special department supplies200415215
Lease purchase9,285- (9,285)
Insurance4,647 4,361 (286)
Total Utilities Administration521,060 503,994 (17,066)
(continued)
80
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
SCHEDULE OF OPERATING EXPENSES ‐ BUDGETED AND ACTUAL
ENTERPRISE FUND ‐ WATER AND WASTEWATER SYSTEM
YEAR ENDED DECEMBER 31, 2019
2019
OriginalOver
and Final (Under)
BudgetActualBudget
Water Operations and Maintenance:
Personal services:
Salaries and wages384,629 359,534 (25,095)
Overtime pay13,924 13,483 (441)
FICA30,489 27,471 (3,018)
Employee retirement60,022 96,102 36,080
Employee insurance71,100 71,527 427
Workers' compensation10,539 8,866 (1,673)
Operating expenses:
Dues/training2,105 2,484 379
Auto operating31,236 32,875 1,639
Contracts and repairs19,295 11,950 (7,345)
Building material10,910 9,066 (1,844)
Uniforms and clothing4,680 5,493 813
Special department supplies98,780 92,315 (6,465)
Judgments/settlements- 1,129 1,129
Insurance12,405 11,640 (765)
Line upgrades82,30073,738(8,562)
Leases53,171 - (53,171)
Small equipment18,078 - (18,078)
Total Water Operations and Maintenance903,663 817,673 (85,990)
Water Production and Treatment:
Personal services:
Salaries and wages451,117 437,038 (14,079)
Overtime pay28,500 32,062 3,562
FICA36,691 34,042 (2,649)
Employee retirement72,230 125,379 53,149
Employee insurance63,200 63,580 380
Workers' compensation13,664 11,494 (2,170)
Operating expenses:
General supplies3,375 632 (2,743)
Dues/training 5,425 5,957 532
Auto operating 5,194 2,872 (2,322)
Utility services 433,431 430,763 (2,668)
Contracts and repairs136,990 163,196 26,206
Building material1,850 1,471 (379)
(continued)
81
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
SCHEDULE OF OPERATING EXPENSES ‐ BUDGETED AND ACTUAL
ENTERPRISE FUND ‐ WATER AND WASTEWATER SYSTEM
YEAR ENDED DECEMBER 31, 2019
2019
OriginalOver
and Final (Under)
BudgetActualBudget
Water Production and Treatment (continued):
Operating expenses (continued):
Uniforms and clothing3,420 3,685 265
Professional services74,550 48,481 (26,069)
ACPSA treatment charges4,500 2,856 (1,644)
Special department supplies193,250 145,174 (48,076)
Insurance42,825 40,185 (2,640)
Leases26,545 - (26,545)
Small equipment12,800 - (12,800)
Total Water Production and Treatment1,609,557 1,548,867 (60,690)
Wastewater Operations and Maintenance:
Personal services:
Salaries and wages474,808 452,470 (22,338)
Overtime pay 17,142 15,141 (2,001)
FICA 37,634 33,556 (4,078)
Employee retirement 74,088 126,595 52,507
Employee insurance86,900 87,422 522
Workers' compensation13,614 11,686 (1,928)
Operating expenses:
Dues/training700 419 (281)
Auto operating 30,257 31,252 995
Utility services67,037 62,040 (4,997)
Contracts and repairs79,980 54,047 (25,933)
Building material12,580 12,869 289
Uniforms and clothing5,150 5,583 433
ACPSA treatment charges 3,276,622 3,552,408 275,786
Special department supplies 18,200 17,924 (276)
Insurance 14,522 17,498 2,976
Leases 60,583 - (60,583)
Small equipment 8,000 - (8,000)
Total Wastewater Operations and Maintenance4,277,817 4,480,910 203,093
Depreciation and amortization- 1,715,817 1,715,817
Total Operating Expenses7,870,020$ 9,682,301$ 1,812,281$
82
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
SCHEDULE OF REVENUES AND EXPENSES ‐ BUDGETED AND ACTUAL
ENTERPRISE FUND ‐ SANITATION SERVICES
YEAR ENDED DECEMBER 31, 2019
2019
OriginalOver
and Final (Under)
BudgetActualBudget
Operating Revenues:
Sanitation service fees3,381,732$ 3,427,570$ 45,838$
Recycling fees760,130 917,212 157,082
Sale of recyclables214,660 142,782 (71,878)
Other86,544 69,119 (17,425)
Total Operating Revenues4,443,066 4,556,683 113,617
Operating Expenses:
Sanitation operations2,538,077 2,477,033 (61,044)
Material recovery facility1,573,817 1,690,829 117,012
Depreciation- 552,325 552,325
Total Operating Expenses4,111,894 4,720,187 608,293
Nonoperating Revenues (Expenses):
Interest earnings18,000 53,098 35,098
Interest expense and fiscal charges- (12,959) (12,959)
Total Nonoperating Revenues 18,000 40,139 22,139
Income before transfers 349,172 (123,365) (472,537)
Transfers:
Transfers in 13,278 13,278 -
Transfers out (362,450) (362,450) -
Change in net position -$ (472,537)$ (472,537)$
83
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
SCHEDULE OF OPERATING EXPENSES ‐ BUDGETED AND ACTUAL
ENTERPRISE FUND ‐ SANITATION SERVICES
YEAR ENDED DECEMBER 31, 2019
2019
OriginalOver
and Final (Under)
BudgetActualBudget
Sanitation Operations:
Personal services:
Salaries and wages1,099,059$ 1,059,689$ (39,370)$
Overtime pay 14,710 16,753 2,043
FICA 85,203 79,798 (5,405)
Employee retirement 167,734282,678114,944
Employee insurance201,450203,3051,855
Workers' compensation33,58529,231(4,354)
Operating expenses:
General supplies3,7273,445(282)
Dues/training3,9072,711(1,196)
Auto operating 335,819357,329 21,510
Utility services 24,932 30,175 5,243
Data processing 10,000 15,094 5,094
Contracts and repairs 12,150 14,224 2,074
Uniforms and clothing 9,770 11,378 1,608
Professional services 5,941 49,162 43,221
Special department supplies 259,380280,749 21,369
Leases 226,685 - (226,685)
Insurance 44,025 41,312 (2,713)
Total Sanitation Operations 2,538,077 2,477,033 (61,044)
(continued)
84
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
SCHEDULE OF OPERATING EXPENSES ‐ BUDGETED AND ACTUAL
ENTERPRISE FUND ‐ SANITATION SERVICES
YEAR ENDED DECEMBER 31, 2019
2019
OriginalOver
and Final (Under)
BudgetActualBudget
Material Recovery Facility:
Personal services:
Salaries and wages379,947 330,359 (49,588)
Overtime pay17,220 5,534 (11,686)
FICA30,383 26,397 (3,986)
Employee retirement59,813 94,639 34,826
Employee insurance67,150 67,553 403
Workers' compensation11,531 10,120 (1,411)
Operating expenses:
General supplies700 737 37
Dues/training940 18 (922)
Auto operating94,838 95,995 1,157
Utility services16,790 15,964 (826)
Contracts and repairs97,660 316,096 218,436
Building material900 305 (595)
Recycling expenses46,784 20,860 (25,924)
Uniforms and clothing4,620 4,802 182
Professional services190,700 197,933 7,233
Special department supplies414,344 460,721 46,377
Leases 93,890 - (93,890)
Insurance45,607 42,796 (2,811)
Total Material Recovery Facility 1,573,817 1,690,829 117,012
Depreciation- 552,325 552,325
Total Operating Expenses4,111,894$ 4,720,187$ 608,293$
85
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
SCHEDULE OF REVENUES AND EXPENSES ‐ BUDGETED AND ACTUAL
ENTERPRISE FUND ‐ STORMWATER UTILITY FUND
YEAR ENDED DECEMBER 31, 2019
2019
OriginalOver
and Final (Under)
BudgetActualBudget
Operating Revenues:
Stormwater utility fees783,000$ 804,213$ 21,213$
Other9,663 42,384 32,721
Total Operating Revenues792,663 846,597 53,934
Operating Expenses:
Stormwater operations774,254 598,696 (175,558)
Depreciation- 189,626 189,626
Total Operating Expenses774,254 788,322 14,068
Nonoperating Revenues (Expenses):
Interest earnings6,000 19,397 13,397
Interest expense and fiscal charges- (990) (990)
Gain (loss) on disposal of capital assets- 4,320 4,320
Total Nonoperating Revenues6,000 22,727 16,727
Income before contributions and transfers24,409 81,002 56,593
Capital contributions- 709,788 709,788
Transfers in3,320 3,320 -
Transfers out(27,729) (27,729) -
Change in net position-$ 766,381$ 766,381$
86
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
SCHEDULE OF OPERATING EXPENSES ‐ BUDGETED AND ACTUAL
ENTERPRISE FUND ‐ STORMWATER UTILITY FUND
YEAR ENDED DECEMBER 31, 2019
2019
OriginalOver
and Final (Under)
BudgetActualBudget
Stormwater Operations:
Personal services:
Salaries and wages351,369$ 358,208$ 6,839$
Overtime pay 1,800 884 (916)
FICA 27,017 25,868 (1,149)
Employee retirement 53,187 93,752 40,565
Employee insurance43,45044,034584
Workers' compensation9,902 11,533 1,631
Operating expenses:
General supplies700720 20
Dues/training4,4004,053(347)
Auto operating 8,100 4,465 (3,635)
Data processing 9,000 10,449 1,449
Contracts and repairs 8,240 6,235 (2,005)
Uniforms and clothing 2,200 1,596 (604)
Advertising 3,800 3,032 (768)
Professional services22,20017,297(4,903)
Special department supplies8,9008,153(747)
Insurance3,641 8,417 4,776
Leases21,010 - (21,010)
Drainage projects 188,838 - (188,838)
Machines and equipment 6,500 - (6,500)
Total Stormwater Operations 774,254 598,696 (175,558)
Depreciation- 189,626 189,626
Total Operating Expenses774,254$ 788,322$ 14,068$
87
SCHEDULE REQUIRED BY STATE LAW
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
SCHEDULE OF FINES, ASSESSMENTS, AND SURCHARGES
GENERAL FUND
YEAR ENDED DECEMBER 31, 2019
Court Fines:
Court fines collected 393,842$
Court fines retained by City 393,842
Court fines remitted to State Treasurer -$
Court Assessments:
Court assessments collected380,777$
Court assessments retained by City42,407
Court assessments remitted to State Treasurer 338,370$
Court Surcharges:
Court surcharges collected 197,791$
Court surcharges retained by City18,390
Court surcharges and assessments retained for Victim Services179,401$
Victim Services:
Court assessments allocated to Victim Services 42,407$
Court surcharges allocated to Victim Services6,923
Funds allocated to Victim Services49,330
Victim Services Expenditures 45,154
Funds Allocated to Victim Services in Excess of Victim Services Expenditures4,176
Funds available for carryforward - beginning of year111,049
Funds available for carryforward - end of year115,225$
88
STATISTICAL
SECTION
North CpAugusta
South Carolina's Riuerfront
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 89 – 93
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 94 – 100
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 101 – 105
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 106 – 107
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 108 – 112
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.
2010 2011 2012 2013 2014
Governmental activities
Net investment in capital assets 44,780,462$ 48,387,572$ 51,180,628$ 53,791,597$ 57,779,457$
Restricted 5,461 9,158,402 7,210,998 7,810,702 7,536,710
Unrestricted 15,028,645 6,382,049 7,342,802 5,466,773 4,267,933
Total governmental activities net position 59,814,568$ 63,928,023$ 65,734,428$ 67,069,072$ 69,584,100$
Business-type activities
Net investment in capital assets 41,186,486$ 44,889,398$ 46,022,914$ 47,734,609$ 51,802,542$
Restricted 10,537,438 9,422,871 10,116,845 10,104,431 9,883,717
Unrestricted 9,417,349 8,342,254 8,233,390 7,777,449 6,767,765
Total business-type activities net position 61,141,273$ 62,654,523$ 64,373,149$ 65,616,489$ 68,454,024$
Primary Government
Net investment in capital assets 85,966,948$ 93,276,970$ 97,203,542$ 101,526,206$ 109,581,999$
Restricted 10,542,899 18,581,273 17,327,843 17,915,133 17,420,427
Unrestricted 24,445,994 14,724,303 15,576,192 13,244,222 11,035,698
Total primary government net position 120,955,841$ 126,582,546$ 130,107,577$ 132,685,561$ 138,038,124$
2015 2016 2017 2018 2019
Governmental activities
Net investment in capital assets 59,649,524$ 60,261,553$ 46,115,747$ 65,640,358$ 64,540,113$
Restricted 6,964,338 7,616,189 23,744,254 6,574,221 8,729,598
Unrestricted (6,848,500) (5,705,943) (5,641,833) (7,354,106) (9,984,502)
Total governmental activities net position 59,765,362$ 62,171,799$ 64,218,168$ 64,860,473$ 63,285,209$
Business-type activities
Net investment in capital assets 53,610,839$ 53,203,765$ 55,927,179$ 58,580,045$ 60,703,383$
Restricted 10,248,230 11,374,284 9,618,737 7,977,008 8,433,456
Unrestricted (1,175,007) (387,763) 492,016 1,215,467 1,431,160
Total business-type activities net position 62,684,062$ 64,190,286$ 66,037,932$ 67,772,520$ 70,567,999$
Primary Government
Net investment in capital assets 113,260,363$ 113,465,318$ 102,042,926$ 124,220,403$ 125,243,496$
Restricted 17,212,568 18,990,473 33,362,991 14,551,229 17,163,054
Unrestricted (8,023,507) (6,093,706) (5,149,817) (6,138,639) (8,553,342)
Total primary government net position 122,449,424$ 126,362,085$ 130,256,100$ 132,632,993$ 133,853,208$
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. A prior period adjustment to capital assets of $3,098,350 required a restatement of beginning net position for Fiscal Year 2019.
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 $18,624,474 was required to reflect implementation.
City of North Augusta, South CarolinaNet Position by ComponentLast Ten Fiscal Years
(accrual basis of accounting)
Year Ending December 31
Year Ending December 31
89
2010 2011 2012 2013 2014ExpensesGovernmental activities: General government 3,798,574$ 3,416,002$ 3,574,637$ 3,893,288$ 4,181,576$
Public safety 5,898,849 6,546,364 6,975,047 6,615,699 7,232,466 Public works 1,796,722 2,796,708 2,980,032 2,609,477 2,348,897
Parks, recreation, and tourism 3,994,496 3,792,045 4,053,013 4,212,673 4,501,259
Debt service - interest and fees 380,060 358,055 340,610 313,866 163,147 Loss on debt defeasance - - - 277,682 -
Total governmental activities expenses 15,868,701$ 16,909,174$ 17,923,339$ 17,645,003$ 18,427,345$
Business-type activities:
Water and wastewater 6,994,927$ 7,220,770$ 6,958,202$ 7,491,321$ 7,420,051$ Sanitation 3,054,296 3,168,553 3,160,647 3,376,614 3,958,515 Stormwater utility 519,481 542,919 568,984 826,121 507,555
Savannah Bluff Lock and Dam 23,275 22,000 24,000 24,000 24,000 Total business-type activities expenses 10,591,979$ 10,954,242$ 10,711,833$ 11,718,056$ 11,910,121$
Total primary government expenses 26,460,680$ 27,863,416$ 28,635,172$ 29,363,059$ 30,337,466$
Program Revenues
Governmental activities:
Charges for services: General government 4,386,190$ 4,605,180$ 4,711,699$ 4,892,172$ 5,272,149$
Public safety 1,082,900 1,177,117 1,092,699 1,055,155 1,109,022
Public Works 42,894 40,512 46,970 60,381 62,664 Parks, recreation, and tourism 1,110,505 1,060,317 1,019,548 1,058,841 1,090,469
Operating grants and contributions 850,731 1,334,520 801,328 811,914 1,433,764 Capital grants and contributions 489,270 1,569,830 1,619,796 1,357,083 468,934 Total governmental activities program revenues 7,962,490$ 9,787,476$ 9,292,040$ 9,235,546$ 9,437,002$
Business-type activities: Charges for services:
Water and wastewater 8,148,497$ 8,450,349$ 8,388,987$ 8,564,524$ 8,800,125$ Sanitation 3,384,930 3,400,975 3,388,623 3,647,518 4,163,934
Stormwater utility 563,305 572,288 573,660 575,233 584,566
Operating grants and contributions - - - - 264,747 Capital grants and contributions 511,472 245,500 206,463 220,936 618,036
Total business-type activities program revenues 12,608,204$ 12,669,112$ 12,557,733$ 13,008,211$ 14,431,408$
Total primary government program revenues 20,570,694$ 22,456,588$ 21,849,773$ 22,243,757$ 23,868,410$
Net (expense) / revenueGovernmental activities (7,906,211)$ (7,121,698)$ (8,631,299)$ (8,409,457)$ (8,990,343)$ Business-type activities 2,016,225 1,714,870 1,845,900 1,290,155 2,521,287
Total primary government net expense (5,889,986)$ (5,406,828)$ (6,785,399)$ (7,119,302)$ (6,469,056)$
General Revenues and Other Changes in Net PositionGovernmental activities:
Ad valorem property taxes 6,142,064$ 6,294,172$ 6,780,783$ 6,858,860$ 6,993,684$ Capital projects sales taxes 3,354,214 3,474,959 1,861,677 1,180,511 2,733,613 Local hospitality and accommodations taxes 555,230 559,853 584,227 622,971 661,531
Interest on investments 54,755 33,350 77,894 70,768 69,440 Gain(loss) on disposal of capital assets - - - - -
Miscellaneous 577,187 336,245 590,882 631,662 696,936
Transfers 559,153 536,574 542,241 657,011 378,848 Total governmental activities 11,242,603$ 11,235,153$ 10,437,704$ 10,021,783$ 11,534,052$
Business-type activities: Interest on investments 63,562$ 42,216$ 56,203$ 48,450$ 50,735$
Gain(loss) on disposal of capital assets -$ -$ -$ -$ - Miscellaneous 263,345 292,738 358,764 561,746 644,361 Transfers (559,153) (536,574) (542,241) (657,011) (378,848)
Total business-type activities (232,246)$ (201,620)$ (127,274)$ (46,815)$ 316,248$
Total primary government 11,010,357$ 11,033,533$ 10,310,430$ 9,974,968$ 11,850,300$
Change in Net PositionGovernmental activities 3,336,392$ 4,113,455$ 1,806,405$ 1,612,326$ 2,543,709$ Business-type activities 1,783,979 1,513,250 1,718,626 1,243,340 2,837,535
Total primary government 5,120,371$ 5,626,705$ 3,525,031$ 2,855,666$ 5,381,244$
(continued)
(accrual basis of accounting)
Year Ending December 31
City of North Augusta, South CarolinaChanges in Net Position
Last Ten Fiscal Years
90
2015 2016 2017 2018 2019
Expenses
Governmental activities: General government 4,573,665$ 4,519,094$ 7,474,923$ 8,855,053$ 11,607,797$ Public safety 7,517,589 8,473,548 8,736,202 9,253,259 9,079,791 Public works 2,051,542 580,327 2,695,126 2,736,631 2,936,592 Parks, recreation, and tourism 4,723,035 5,061,480 4,913,582 3,785,041 4,212,339
Debt service - interest and fees 168,583 155,047 338,132 1,568 276,699
Loss on debt defeasance - - - - -
Total governmental activities expenses 19,034,414$ 18,789,496$ 24,157,965$ 24,631,552$ 28,113,218$
Business-type activities: Water and sewer 8,081,456$ 7,745,232$ 8,359,555$ 8,896,535$ 10,077,290$ Sanitation 4,316,548 4,594,016 4,536,142 4,624,936 4,733,146 Stormwater utility 494,179 541,495 638,634 661,987 789,312
Savannah Bluff Lock and Dam utility 24,000 24,000 24,000 23,999 24,000
Total business-type activities expenses 12,916,183$ 12,904,743$ 13,558,331$ 14,207,457$ 15,623,748$
Total primary government expenses 31,950,597$ 31,694,239$ 37,716,296$ 38,839,009$ 43,736,966$
Program Revenues
Governmental activities: Charges for services: General government 5,621,613$ 5,885,657$ 6,229,497$ 6,361,953$ 6,256,452$ Public safety 1,195,544 1,060,102 1,041,202 892,138 1,044,181 Public Works 65,907 78,018 158,147 167,961 108,726
Parks, recreation, and tourism 1,162,485 1,260,024 1,148,108 1,829,789 2,096,008
Operating grants and contributions 872,652 791,316 1,083,944 1,377,317 1,265,522
Capital grants and contributions - - 207,768 - 759,852
Total governmental activities program revenues 8,918,201$ 9,075,117$ 9,868,666$ 10,629,158$ 11,530,741$
Business-type activities: Charges for services: Water and sewer 8,664,457$ 9,155,898$ 9,459,054$ 9,746,927$ 10,151,786$
Sanitation 4,168,309 4,246,959 4,472,281 4,355,688 4,487,564
Stormwater utility 746,814 759,131 770,135 782,958 804,213
Operating grants and contributions 2,449 - 10,161 80,636 23,516
Capital grants and contributions 396,837 124,408 103,591 23,514 616,830
Total business-type activities program revenues 13,978,866$ 14,286,396$ 14,815,222$ 14,989,723$ 16,083,909$
Total primary government program revenues 22,897,067$ 23,361,513$ 24,683,888$ 25,618,881$ 27,614,650$
Net (expense) / revenueGovernmental activities (10,116,213)$ (9,714,379)$ (14,289,299)$ (14,002,394)$ (16,582,477)$ Business-type activities 1,062,683 1,381,653 1,256,891 782,266 460,161
Total primary government net expense (9,053,530)$ (8,332,726)$ (13,032,408)$ (13,220,128)$ (16,122,316)$
General Revenues and Other Changes in Net Position
Governmental activities:
Ad valorem property taxes 6,874,139$ 7,162,650$ 8,146,680$ 8,143,925$ 8,456,230$
Capital projects sales taxes 2,828,301 2,891,291 3,109,712 3,179,463 1,443,301
Local hospitality and accommodations taxes 713,903 764,056 790,749 1,718,195 2,017,221
Interest on investments 89,791 192,906 423,369 400,007 330,669 Gain(loss) on disposal of capital assets (3,311) - - 9,441 31,203 Miscellaneous 886,062 568,970 3,659,328 1,024,414 1,005,944 Transfers 514,893 540,943 205,830 169,254 748,347
Total governmental activities 11,903,778$ 12,120,816$ 16,335,668$ 14,644,699$ 14,032,915$
Business-type activities:
Interest on investments 69,410$ 120,990$ 145,025$ 281,451$ 327,680$
Gain(loss) on disposal of capital assets 46,107 (12,606) 78,747 55,180 465 Miscellaneous 584,902 557,130 572,813 784,945 631,468 Transfers (514,893) (540,943) (205,830) (169,254) (748,347) Total business-type activities 185,526$ 124,571$ 590,755$ 952,322$ 211,266$
Total primary government 12,089,304$ 12,245,387$ 16,926,423$ 15,597,021$ 14,244,181$
Change in Net Position
Governmental activities 1,787,565$ 2,406,437$ 2,046,369$ 642,305$ (2,549,562)$
Business-type activities 1,248,209 1,506,224 1,847,646 1,734,588 671,427
Total primary government 3,035,774$ 3,912,661$ 3,894,015$ 2,376,893$ (1,878,135)$
(accrual basis of accounting)
Year Ending December 31
Changes in Net PositionLast Ten Fiscal Years
91
2010 2011 2012 2013 2014
General Fund
Reserved 6,780$ -$ -$ -$ -$
Unreserved 522,008 - - - -
Nonspendable * - 1,723 1,220 1,630 1,774
Restricted *- 2,600 3,140 32,841 60,140
Committed *- 695,829 1,143,666 966,050 1,073,650
Unassigned*- -- - -
Total General Fund 528,788$ 700,152$ 1,148,026$ 1,000,521$ 1,135,564$
All Other Governmental Funds
Reserved -$ -$ -$ -$ 6,746,666$
Unreserved 15,060,268 - - - -
Restricted *- 8,599,562 6,725,864 7,065,591 2,114,554
Committed *- 2,053,852 1,197,249 1,534,983 2,489,051
Assigned *- 4,728,272 6,031,460 4,234,929 (188,988)
Total all other governmental funds 15,060,268$ 15,381,686$ 13,954,573$ 12,835,503$ 11,161,283$
2015 2016 2017 2018 2019
General Fund
Nonspendable*-$ -$ -$ -$ -$
Restricted *88,746 103,644 107,443 111,049 115,225
Committed *796,106 1,484,194 1,121,426 937,499 433,393
Unassigned *2,375,000 2,475,000 2,625,000 2,825,000 2,875,000
Total General Fund 3,259,852$ 4,062,838$ 3,853,869$ 3,873,548$ 3,423,618$
All Other Governmental Funds
Restricted *5,790,157$ 7,512,545$ 23,636,811$ 10,531,546$ 9,423,502$
Committed *2,184,346 2,950,803 3,731,713 2,669,258 2,737,813
Assigned *1,261,269 428,854 367,043 344,403 34,138
Unassigned *(69,258) - - - -
Total all other governmental funds 9,166,514$ 10,892,202$ 27,735,567$ 13,545,207$ 12,195,453$
*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)
92
2010 2011 2012 2013 2014RevenuesAd valorem taxes 6,142,064$ 6,294,172$ 6,780,783$ 6,858,860$ 6,993,526$ Sales taxes 3,354,214 3,474,959 1,861,677 1,180,511 2,733,613 Local hospitality and accommodations taxes 555,230 559,853 584,227 622,971 661,531
Licenses and permits 4,386,190 4,605,181 4,711,699 4,892,172 5,272,149
Fines and forfeitures 1,017,029 1,113,435 1,029,126 991,039 1,044,648 Charges for services 1,176,376 1,123,999 1,083,121 1,122,957 1,154,843 Intergovernmental 1,105,430 2,050,355 1,198,831 1,141,759 1,187,485 Miscellaneous/interest earnings 513,604 369,594 675,603 697,191 747,304 Contributions - 62,497 310,352 1,000 368,500
- 17,563 4,352 - -
Total Revenues 18,250,137$ 19,671,608$ 18,239,771$ 17,508,460$ 20,163,599$
ExpendituresGeneral government 3,296,614$ 2,964,818$ 2,984,191$ 3,302,811$ 3,704,832$ Public safety 5,547,594 6,092,949 6,502,974 6,058,506 6,630,196
Public works 1,182,030 1,117,385 1,176,290 1,157,668 1,344,015
Parks, recreation and tourism 2,947,681 2,966,513 3,154,330 3,141,942 3,391,470 Capital outlay 2,596,756 5,903,648 5,089,261 1,353,010 6,269,988 Debt service: Capital lease payments 883,675 974,915 1,024,075 4,117,682 747,764 Interest and fiscal charges 386,664 361,398 345,547 599,101 179,035 Principal Retirements - - - - -
Bond Issuance Costs - - - - - Total Expenditures 16,841,014$ 20,381,626$ 20,276,668$ 19,730,720$ 22,267,300$
Excess (deficiency) of revenues over (under) expenditures 1,409,123$ (710,018)$ (2,036,897)$ (2,222,260)$ (2,103,701)$
Other financing sources (uses)
Proceeds on sale of capital assets 293,749$ -$ -$ -$ 26,191$ Inception of capital lease obligation 217,368 666,226 515,417 309,494 312,249 Lease issuance cost - - - - - Issuance of bonds - - - - - Transfers in 1,141,208 913,575 1,135,143 1,691,350 3,253,841
Transfers out (595,511) (377,001) (592,902) (1,045,159) (2,874,993)
Total other financing sources (uses)1,056,814$ 1,202,800$ 1,057,658$ 955,685$ 717,288$
Net change in fund balance 2,465,937$ 492,782$ (979,239)$ (1,266,575)$ (1,386,413)$
Debt service as a percentage of noncapital expenditures 8.90%8.72%8.42%24.83%5.77%
2015 2016 2017 2018 2019
Revenues
Ad valorem taxes 6,871,821$ 7,163,429$ 7,446,013$ 8,018,222$ 8,404,331$ Sales taxes 2,828,301 2,891,291 3,109,712 3,179,463 2,235,581 Local hospitality and accommodations taxes 713,903 764,056 790,749 1,718,195 2,017,221 Licenses and permits 5,621,613 5,885,657 6,229,497 6,361,953 6,256,452 Fines and forfeitures 1,138,891 996,799 978,626 834,200 1,006,060
Charges for services 1,285,045 1,401,345 1,291,321 1,974,016 2,226,219
Intergovernmental 872,652 791,316 4,179,592 1,899,080 1,569,665 Miscellaneous/interest earnings 977,123 781,035 1,000,276 1,068,804 1,111,636 Contributions - - - - - - - - - - Total Revenues 20,309,349$ 20,674,928$ 25,025,786$ 25,053,933$ 24,827,165$
ExpendituresGeneral government 4,028,393$ 3,712,733$ 3,406,445$ 4,759,360$ 5,751,630$ Public safety 7,833,279 7,990,705 7,921,809 8,379,644 8,932,323 Public works 1,487,619 1,394,286 1,515,323 1,594,271 1,728,518 Parks, recreation and tourism 3,647,665 4,022,934 4,085,589 3,043,122 3,278,290 Capital outlay 13,260,678 1,790,360 45,762,352 18,736,157 4,909,427
Debt service:
Capital lease payments 897,952 929,907 3,991,122 619,864 731,955 Interest and fiscal charges 164,947 155,047 1,712,670 3,217,755 3,217,751 Principal Retirements - - 12,573,657 (b)- - Bond Issuance Costs - - 1,495,554 - - Total Expenditures 31,320,533$ 19,995,972$ 82,464,521$ 40,350,173$ 28,549,894$
Excess (deficiency) of revenues over (under) expenditures (11,011,184)$ 678,956$ (57,438,735)$ (15,296,240)$ (3,722,729)$
Other financing sources (uses)Proceeds on sale of capital assets -$ -$ -$ -$ -$
Inception of capital lease obligation 887,594 880,655 473,983 432,308 838,111
Issuance of bonds 9,738,217 428,120 71,882,320 (a)- - Insurnace proceeds - - 178,260 - - Transfers in 23,350,453 1,397,258 10,699,613 4,538,136 3,825,974 Transfers out (22,835,560) (856,315) (9,161,045) (3,844,885) (2,741,040) Total other financing sources (uses)11,140,704$ 1,849,718$ 74,073,131$ 1,125,559$ 1,923,045$
Net change in fund balance 129,520$ 2,528,674$ 16,634,396$ (14,170,681)$ (1,799,684)$
Debt service as a percentage of noncapital expenditures 6.42%7.03%54.73%(b)18.18%18.09%
(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 $25,000 tax increment revenue bond.
(b) In May 2017, the North Augusta Public Facilities Corporation entered into an installment purchase transaction. Proceeds from this transaction were also
used to refinance the municipal center lease.
Grant revenue
Year Ending December 31
(modified accrual basis of accounting)
Grant revenue
Year Ending December 31
City of North Augusta, South CarolinaChanges in Fund Balances, Governmental FundsLast Ten Fiscal Years
93
Year Ended
December 31
(a) Tax
Year
Assessed
Value
Estimated Actual
Value
Assessed
Value
Estimated Actual
Value
Assessed
Value
Estimated Actual
Value Tax Rate
2010 2009 56,974,481$ 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
2019 2018 83,448,499 1,702,840,127 31,654,277 239,635,180 115,102,776 1,942,475,307 73.50
(b) Reassessment year, see Table VI
(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.
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
94
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
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
2019 2018 73.50 -73.50 65.20 3.30 68.50 137.30 33.70 171.00 313.00
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 $1,000 of assessed valuation
Tax Rate Limits:None Taxes Due: Personal: In the month preceding tag renewal by the S.C. State Highway Department
Real and Merchants: April 30thPersonal: N/A--Taxes on personal property paid in advance
Taxes Delinquent:Real and Merchants: May 1st
Discount Allowed: None Penalties: Real and Merchants: 15%
Reassessment Years:Tax Years 2011, 2016
Uncollected taxes are turned over to the City Delinquent Tax Collector on June 1st, with authority to enforce collection by tax sale.
(a) Because of the change mandated by State law noted in the footnote of Table V, the City of North Augusta uses different tax years for real and personal property taxes.
City of North Augusta, South CarolinaDirect and Overlapping Property Tax Rates
Last Ten Fiscal Years
City of North Augusta
Overlapping Property Tax Rates
County of Aiken Aiken County School District
95
2019 2010
Taxpayer Type of Business
Assessed
Valuation Rank
Percentage of Total Assessed
Valuation
Assessed
Valuation Rank
Percentage of Total Assessed
Valuation
S. C. Electric & Gas Co.Utility 3,449,210$ 1 3.00%2,064,310$ 1 2.76%
Allnex Industries, Inc. (a)Manufacturing 2,602,230 2 2.26%1,408,170 2 1.88%
Wal-Mart, Inc.Retail Shopping 2,512,010 3 2.18%947,120 6 1.26%
SUSO 3 Augusta, LP Real Estate 1,224,300 4 1.06%
SRP Federal Credit Union Banking/Credit Union 1,111,850 5 0.97%
Halocarbon Chemicals, Inc. Manufacturing 1,076,300 6 0.94%1,096,450 3 1.46%
CVS SC Distribution, Inc.Warehousing/Distribution 724,870 7 0.63%903,200 7 1.21%
NHC Healthcare Healthcare Facility 712,590 8 0.62%
Lowes Home Centers, Inc.Retail Building Supplies 580,550 9 0.50%414,680 9 0.55%
The Kroger Company Grocery Store 562,320 10 0.49%495,110 8 0.66%
Bell South Telecommunications Communication 965,160 5 1.29%
North Augusta Plaza SC, LLC Real Estate 1,036,660 4 1.38%
Cutwater Inc & Nomad Investments Real Estate 374,740 10 0.50%
TOTAL Taxable Assessed 14,556,230$ 12.65%9,705,600$ 12.95%
(a) Allnex formerly Cytec Surface Specialties
City of North Augusta, South CarolinaPrincipal Property Taxpayers
Current Year and Nine Years Ago
Source: City of North Augusta tax records
This table lists the ten largest taxpayers, type of business, assessed valuation, and tax levy for the fiscal year 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%.
96
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
2010 2009 5,783,397$ 5,741,980$ 99.28%33,267$ 5,775,247$ 99.86%
2011 2010 5,924,149 5,883,727 99.32% 29,458 5,913,185 99.81%
2012 (c) 2011 6,377,793 6,344,561 99.48% 12,683 6,357,244 99.68%
2013 2012 6,488,677 6,446,489 99.35%21,955 6,468,444 99.69%
2014 2013 6,597,073 6,565,216 99.52%14,030 6,579,246 99.73%
2015 2014 6,804,705 6,762,260 99.38%21,510 6,783,770 99.69%
2016 2015 7,026,901 6,992,988 99.52%9,980 7,002,968 99.66%
2017 (c) 2016 7,484,042 7,446,013 99.49%8,288 7,454,301 99.60%
2018 2017 8,064,166 8,018,222 99.43%14,731 8,032,953 99.61%
2019 2018 $8,460,054 8,404,331 99.34%8,404,331 99.34%
(a) Includes real, merchants inventory, merchants furniture and fixtures, and personal property taxes levied and collected.
(b) Because of the change by State law noted in the footnote of Table V, the City of North Augusta uses different tax years for
real and personal property taxes.
(c) Reassessment year, see Table VI
City of North Augusta, South CarolinaProperty Tax Levies and Collections
Last Ten Fiscal Years
Total Collections to Date
Collected within the
Current Year of Tax Levy
Source: City of North Augusta tax records
97
Year Ended
December 31 Total Revenues Gross Sales
Total Number of
Licenses Issued
2010 4,244,590$ 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 (a)1,253,829,811 2,017
2018 6,007,529 (a)1,355,936,169 2,420
2019 5,886,386 1,256,734,425 2,254
(a)Increase due to numerous one-time licenses for construction related to projects in Riverside Village.
Source: City of North Augusta business license records
City of North Augusta, South Carolina
Business Licenses / Franchise Fees
Last Ten Fiscal Years
98
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
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
2019 9,119 765 9,884 2,927 158 3,085 12,969
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
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
2019 10,775 640 11,415 972 30 1,002 12,417
Source: City of North Augusta utility billing records
City of North Augusta, South Carolina
Number of Utility CustomersLast Ten Fiscal Years
99
Water Customers
Customer Name Type of Business Rank Water Usage Rank Water Usage
City of North Augusta Municipal Government 1 87,082,500 2 52,674,900
Halocarbon Chemicals, Inc.Manufacturing 2 54,847,400 3 43,300,500
Allnex Industries, Inc.Manufacturing 3 36,130,600 4 30,661,500 (a)
Crowne Plaza Hotel 4 16,861,600
Aiken County Schools School District 5 13,061,200 6 10,555,700
JARS at Breckenridge/Plaza Terrace Apartments 6 10,383,700 5 10,671,900
Gentry's Mobile Home Park Mobile Home Park 7 8,120,800 8 7,126,500
Ridgeview Manor Apartments 8 7,011,900 7 8,227,900 (c)
Ambiopharm Pharmacutical Manufacturer 9 6,228,200
Lulu's Car Wash Automated Car Wash 10 6,011,100
Breezy Hill Water & Sewer Authority Water District Provider 1 254,950,000
CIG Plaza Place LLC Apartments 9 5,877,000 (b)
UniHealth Post Acute Care Nursing Home Facility 10 5,263,700
Wastewater Customers
Customer Name Type of Business Rank Water Usage Rank Water Usage
Edgefield County Water & Sewer Authority Sewer District Provider 1 789,008,667 1 557,574,000
Halocarbon Chemicals, Inc.Manufacturing 2 54,847,400 2 43,300,500
Allnex Industries, Inc.Manufacturing 3 35,762,306 3 17,589,100 (a)
City of North Augusta Municipal Government 4 34,238,583 5 8,221,000
Crowne Plaza Hotel 5 16,490,900
JARS at Breckenridge/Plaza Terrace Apartments 6 10,407,300 4 10,046,700
Aiken County Schools School District 7 9,166,997 6 8,166,100
Ridgeview Manor Apartments 8 8,348,100 7 8,106,400 (c)
Gentry's Mobile Home Park Mobile Home Park 9 8,009,097
National Healthcare Nursing Home Facility 10 7,016,400
Willow Wick Apartments Apartments 8 5,312,800
UniHealth Post Acute Care Nursing Home Facility 9 5,263,700
CIG Plaza Place LLC Apartments 10 5,105,000 (b)
Note: Consumption is measured in gallons
(a) Allnex formerly Cytec Surface Specialties(b) CIG Plaza Place LLC formerlly Plaza Place Apartments, LLC
(c) Ridgeview Manor formerlly The Housing Authority
City of North Augusta, South Carolina
Ten Largest Water and Wastewater Customers
Current Year and Nine Years Ago
Source: City of North Augusta utility billing records
2019 Annual Consumption 2010 Annual Consumption
2019 Annual Consumption 2010 Annual Consumption
100
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
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
2019 - 69,475,000 - 1,304,026 18,889,980 852,425 - 90,521,431 26,721 3,387.65
City of North Augusta, South Carolina
Ratio of Outstanding Debt by TypeLast Ten Fiscal Years
Governmental Activities Business-Type Activities
(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 $25,000 tax increment revenue bond.
101
Year Ended
December 31
General Obligation
Bonds (GOB)
Estimated Actual
Taxable Value (1)
of Property
% of Estimated
Actual Taxable
Value of Property Population (2)Per Capita
2010 3,964,448$ 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
2019 - 1,942,475,307 0.00%26,721 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 2019 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.
102
Jurisdiction
Debt Outstanding @
December 31, 2019
Percent Applicable to City of
North Augusta
Amount Applicable to City of
North AugustaDirect Debt
City of North Augusta *70,779,026$ 100.00%70,779,026$
Overlapping Debt
County of Aiken 40,104,196$ 16.43%6,589,119$
Aiken County School District 233,180,000 16.43%38,311,474
Sub-total - Overlapping Debt 273,284,196$ 16.43%44,900,593$
Total 344,063,222$ 115,679,619$
City of North Augusta, South Carolina
Direct and Overlapping Governmental Activities Debt
As of December 31, 2019
assessed value to Aiken County's total taxable assessed value.
Source: Aiken County and Aiken County School District
* Includes Revenue Bonds and Capital Leases
Note: The percentage of the overlapping debt applicable to the City of North Augusta is estimated using taxable assessed
property values. Applicable percentages were estimated by determining the percentage of the City's total taxable
103
2010 2011 2012 2013 2014
Debt Limit 5,993,158$ 6,139,015$ 6,875,400$ 6,994,935$ 7,111,789$
Total net debt applicable to limit 3,964,448 *3,684,043 *3,393,638 *- -
Legal debt margin 2,028,710$ 2,454,972$ 3,481,762$ 6,994,935$ 7,111,789$
Total net debt applicable to the limit
as a percentage of debt limit 66.15%60.01%49.36%0.00%0.00%
2015 2016 2017 2018 2019
Debt Limit 7,335,620$ 7,575,153$ 8,492,530$ 8,777,324$ 9,208,222$
Total net debt applicable to limit - - - - -
Legal debt margin 7,335,620$ 7,575,153$ 8,492,530$ 8,777,324$ 9,208,222$
Total net debt applicable to the limit
as a percentage of debt limit 0.00%0.00%0.00%0.00%0.00%
Note: The 2006 General Obligation Bonds were defeased in December of 2013 removing the City's financial obligation.
Legal Debt Margin Information
City of North Augusta, South Carolina
Fiscal Year
Fiscal Year
Last Ten Fiscal Years
* General Obligation Bonds issued in 2006
104
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
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 7,214,545 3,038,225 1,139,804 219,035 1,358,839 2.24
2019 10,671,751 7,966,484 2,705,267 1,223,501 205,384 1,428,885 1.89
NOTE:Revenuebond coverage requirements are defined in the City's RevenueBond Ordinance by the City's BondCounsel,Pope Flynn LLC,Attorneys and
Counselors at Law,located inColumbia,South Carolina.Coverage iscalculated by dividing theannual netrevenue available for debt service by the average annual
requirementsfor principal and intereston all debt outstanding andpayable from revenuesof the system.Annual netrevenue available for debt service is defined as
the total operating revenues (non-operating revenue or interest 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
105
Year Population
Personal Income
(thousands of dollars)
Per Capita Personal
Income Unemployment Rate
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%
2018 169,401 7,201,441 42,511 3.4%
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
2018 23,444 169,401
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 2019.
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
106
% of Total % of Total
County County
Employer Location Service or Product Employees Rank Employment (c)Employees Rank Employment
Savannah River Site - see detail below (1)Out Materials for Nuclear Defense 11,093 1 15.45%12,367 1 18.84%
Aiken County Public Schools In / Out School District 3,400 2 4.73%3,272 2 4.98%
Bridgestone Americas (2)Out Passenger/Light Truck Tires and Large/Ultra Large Tires 2,269 3 3.16%930 5 1.42%
Kimberly-Clark Corp.Out Consumer Paper Products 1,200 4 1.67%1,475 3 2.25%
Aiken Regional Medical Center Out Hospital 1,167 5 1.63%1,002 4 1.53%
Aiken County Government Out County Government 975 6 1.36%888 6 1.35%
Advanced Glassfiber Yarn Out Fiberglass Insulation and Circuit Boards 766 7 1.07%770 7 1.17%
UPS Customhouse Brokerage Out International Customhouse Brokerage 610 8 0.85%514 9 0.78%
University of South Carolina-Aiken Out Higher Education 606 9 0.84%
Shaw Industries Out Fibers Manufacturing 600 10 0.84%600 8 0.91%
Walmart-North Augusta In Retail 585 11 0.81%Crane Merchandising Systems Out Vending Machines 480 12 0.67%
City of Aiken Out Municipal Government 404 13 0.56%442 10 0.67%
ASCO Valve, Inc.Out Solenoid Valve Technology 427 14 0.59%285 14 0.43%
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 13 0.52%
Autoneum North America, Inc.Out Thermal & Acoustical Management 300 18 0.42%
MTU America Inc.Out Off Road Diesel Engines and Components 360 19 0.50%
City of North Augusta In Municipal Government 248 20 0.35%213 17 0.32%
Westinghouse Safety Management Solutions Out Engineering Consulting Firm 438 11 0.67%
The Calstar Group (b)Out Speciality Tires and Wheels 400 12 0.61%
Glaxo Smith Kline Out Proprietary Drugs 245 15 0.37%
R.E. Phelon, Inc.Out Aluminum Die Casting 225 16 0.34%
PACTIV Corp.Out Plastic Food Service Plates 208 18 0.32%
Newman Technology SC, Inc Out Automotive/ATV Exhaust and Suspension 167 19 0.25%BAE Systems Out Machine Parts - Track Vehicles 150 20 0.23%
Location: In city limits, Out of city limits
* not in business at this time** information not available
(1) SRNS/SRR, including subcontractors 9,182 (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 0 2,269
Centerra 674
Parsons 598
Department of Energy 327
US Forestry Service 81
Savannah River Ecology Lab 117
Other Subcontractors 114
11,093
with less than 6% scattered in other areas.
County
# of
workers %
Aiken County, South Carolina 5,142 56.00%
Columbia County, Georgia 1,400 15.20%
Richmond County, Georgia 1,110 12.10%
Barnwell County, South Carolina 617 6.70%
Edgefield County, South Carolina 301 3.30%
Orangeburg County, South Carolina 108 1.20%
Bamberg County, South Carolina 96 1.00%
Lexington County, South Carolina 176 1.90%
Other 232 2.60%
9,182 100.00%
(a) Formerly Wackenhut(b) Formerly Carlisle Tire and Wheel Company(c) 2019 employment not available. 2018 employment used to calculate percentage.
City of North Augusta, South CarolinaPrincipal EmployersCurrent Year and Nine Years Ago
Savannah River Nuclear Solutions/Savannah River Remediation Company employees live in 7 counties in South Carolina and 2 in Georgia
Source: Economic Development Partnership, Various Employers, and South Carolina Employment Commission
2019 2010
107
Fund / Function / Department 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
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 3.0 3.0 3.0 3.0 1.0 1.0 1.0 2.0
Information Technology 0.0 0.0 0.0 0.0 0.0 0.0 1.5 (a)1.5 1.5 4.0 (e)
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 4.5 4.5 4.5 5.5 5.5 4.0 4.0 4.0 4.0
Human Resources 0.0 0.0 0.0 0.0 0.0 0.0 2.0 (b)2.0 2.0 2.0
Building Standards 4.0 3.0 3.5 3.5 3.5 4.5 4.5 4.5 4.5 4.5
Planning and Development 4.0 3.0 2.0 2.0 2.0 2.0 2.0 2.5 2.5 3.5
City Buildings 3.0 3.0 3.0 3.0 3.0 3.0 0.0 0.0 0.0 0.0
Property Maintenance 13.0 13.0 13.0 12.0 12.0 13.0 14.0 14.0 14.0 15.0
Public Safety 72.0 76.5 76.5 77.0 79.0 84.0 88.0 90.0 90.0 91.0
Public Works
Engineering 2.5 1.5 1.5 1.5 1.5 1.5 2.5 2.5 2.5 3.0
Streets & Drains 9.0 9.0 9.0 9.0 9.5 10.0 10.0 10.0 10.0 10.0
Parks, Recreation & Tourism
Recreation 5.0 5.0 5.0 5.0 4.0 5.0 5.0 4.0 4.0 4.0
Parks 4.0 4.0 4.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0
Community Center 2.0 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 3.0 (f)3.0 3.0 3.0
RVP Activities 6.0 6.0 6.0 6.0 6.0 6.0 6.0 7.0 7.0 7.0
Sub-total 133.5 134.5 135.0 135.5 138.0 146.5 152.5 155.0 155.0 162.0
Stormwater Fund
Stormwater 6.0 6.0 5.5 5.5 5.0 4.5 5.5 5.0 5.0 5.5
Sub-total 6.0 6.0 5.5 5.5 5.0 4.5 5.5 5.0 5.0 5.5
Riverfront Central Core Dev. Fund
Tourism 0.0 0.0 0.0 0.0 0.0 0.0 0.0 1.0 (d)1.0 1.0
Sub-total 0.0 0.0 0.0 0.0 0.0 0.0 0.0 1.0 1.0 1.0
Sanitation Fund
Public Works
Information Technology 0.0 0.0 0.0 0.0 0.0 0.0 0.5 (c)0.5 0.5 0.0 (e)
Sanitation 26.0 26.0 25.5 26.0 26.0 26.0 25.5 26.5 26.5 25.5
Material Recovery Center 7.5 7.5 7.5 7.5 8.5 8.5 8.5 8.5 8.5 8.5
Sub-total 33.5 33.5 33.0 33.5 34.5 34.5 34.5 35.5 35.5 34.0
Water & Wastewater Fund
Public Utilities
Information Technology 0.0 0.0 0.0 0.0 0.0 0.0 2.0 (a)2.0 2.0 0.0 (e)
Utilities Finance 4.0 4.0 5.0 5.0 5.0 5.0 4.0 5.0 5.0 5.0
Utilities Administration 8.0 7.5 7.5 7.5 7.5 7.5 7.5 7.5 7.5 6.5
Water Operations 9.0 8.0 8.0 8.0 8.0 8.0 8.0 8.0 8.0 9.0
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 11.0
Sub-total 39.0 37.5 38.5 38.5 38.5 38.5 39.5 40.5 40.5 39.5
TOTAL 212.0 211.5 212.0 213.0 216.0 224.0 232.0 237.0 237.0 242.0
(a) previously included under Finance
(b) previously included under Administration
(c) previously included under Sanitation
(d) previously under Parks, Recreation, and Tourism
(e) previously split among the General, Sanitation, & Water and Wastewater Funds
(f) previously included under City Buildings
Source: City of North Augusta Annual Budgets
Fiscal Year
City of North Augusta, South CarolinaFull-time Budget Equivalent Employees by Fund / Function / DepartmentLast Ten Fiscal Years
108
Function / Program 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
General Government
Size of City (square miles)20.723 20.769 20.778 20.989 21.019 21.150 21.172 21.177 21.180 21.970
Annexations approved by City Council 4 4 7 5 5 - 2 1 1 3
Building permits issued 815 627 604 622 660 648 668 689 703 779
Plumbing permits issued 349 341 291 340 310 373 381 296 358 389
Mechanical permits issued 467 323 345 391 433 417 520 455 494 561
Electrical permits issued 443 411 349 422 431 434 482 813 618 523
Business licenses issued 1,803 1,756 1,750 1,760 1,861 1,849 1,877 2,017 2,420 2,254
Police
Total calls for service 50,349 50,356 42,632 41,058 38,973 40,567 37,929 37,322 38,112 40,952
Criminal arrests 2,024 1,800 1,841 1,377 1,360 1,766 1,572 1,338 885 1,127
Incident reports (police action required)3,277 3,228 3,557 3,377 3,399 3,627 3,888 3,966 3,797 3,356
Accident reports (collisions)1,068 1,041 1,007 960 1,012 1,190 1,187 1,267 1,390 1,191
Traffic offenses (resulting in fine)6,590 8,652 8,698 8,780 8,785 8,809 7,933 8,261 8,490 9,057
Drug offenses 260 231 136 203 157 177 210 372 214 154
Burglaries reported 408 333 218 117 108 97 132 93 94 76
Fire
Actual fire calls - Inside City 192 150 105 130 145 114 105 83 377 384
Actual fire calls - Outside City 13 23 21 17 12 7 31 32 56 26
Solid Waste
Garbage Refuse Collected (tons) - Residential 10,618 10,402 9,011 9,079 9,143 10,227 9,334 9,554 9,473 8,613
Garbage Refuse Collected (tons) - Commercial 6,049 6,625 6,874 4,992 5,037 4,723 5,502 6,082 5,647 6,108
Recyclables Collected (tons)3,055 5,617 4,839 5,326 5,313 6,656 5,047 5,437 5,507 4,312
Property Maintenance
Tree trimming hours 198 260 287 254 275 1,378 3,516 1,338 2,050 1,202
Mowing hours 12,800 13,250 12,970 12,960 12,976 10,944 12,892 14,036 10,368 11,025
Planting hours 5,500 5,600 5,760 5,565 4,628 1,726 1,388 1,145 1,504 754
Streets and Drains
Pothole patching / asphalt tons 191 254 388 476 409 341 464 142 132 169
Curb, gutter & sidewalk repair / CY 199 324 290 285 378 472 292 400 294 402
Storm drain inlets cleaned 224 307 330 325 282 419 619 848 664 612
Street sweeping / miles 2,168 2,670 2,393 2,727 977 1,339 822 574 563 588
Parks and Recreation
Baseball / Number of Players 786 784 788 735 789 779 687 592 576 617
Youth Softball / Number of Players 261 270 262 248 259 238 234 240 221 211
Spring Soccer / Number of Players 513 527 540 528 511 484 532 585 580 567
Fall Soccer / Number of Players 504 511 534 474 473 552 552 493 540 540
Youth Basketball / Number of Players 581 595 600 549 680 640 615 652 577 647
Youth Football / Number of Players 346 313 309 310 281 280 239 219 267 269
Youth Cheerleading / Number of Participants 153 165 115 118 96 113 117 182 164 170
Youth Volleyball / Number of Participants 89 91 61 105 83 94 73 86 82 95
Water
New water taps 103 101 43 33 77 77 184 130 128 103
Water lines installed / L.F.3,766 4,662 2,857 5,609 2,068 2,599 913 4,115 6,638 6,432
Water line leaks repaired 17 12 24 29 34 23 27 16 19 18
Average daily water pumped 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 4,083,000
Daily peak demand (gallons per day)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 7,380,000
Peak day 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 7/12/2019
Wastewater
New sewer taps 140 122 97 117 135 158 212 154 197 187
Wastewater lines installed / L.F.0 1,425 160 1,379 508 1,970 1,259 6,208 8,423 5,077
Wastewater lines repaired / L.F.54 64 65 33 62 680 556 252 16 47
Wastewater lines cleaned / L.F.67,029 57,810 87,648 73,232 93,859 70,610 57,320 34,516 49,432 67,416
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
109
Function / Program 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Public Safety
Number of Stations 2 2 2 2 2 3 3 3 3 3
Number of Public Safety Officers 55 55 55 55 58 61 62 64 65 65
Number of Volunteer Firemen 20 20 20 20 20 20 20 25 20 20
Insurance Rating (ISO)Class 3 Class 3 Class 3 Class 3 Class 3 Class 2 Class 2 Class 2 Class 2 Class 2
Signalized Intersections 26 30 30 30 30 31 31 32 32 32
Number of Fire Hydrants
Inside City 792 795 802 805 809 812 814 816 848 848
Outside City 149 149 149 149 149 149 149 149 149 149
Public Works
Miles of Streets 137.77 138.81 140.09 140.85 141.37 141.91 143.77 144.2 144.9 145.75
Street Lights 1,750 1,763 1,789 1,789 1,800 1,817 1,841 1,859 1,980 2,000
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 14.0 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 9 9 9 9 9 9
Baseball / Softball Diamonds 9 10 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 11 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 Lines 194.78 195.15 195.27 196.01 196.08 228.68 229.07 229.84 231.09 232.3
Maximum Pumping Capacity 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 12,000,000
(gallons per day)
Sewer
Miles of Wastewater Lines 227.46 227.72 228.03 228.54 228.57 229.20 229.57 230.74 232 232.96
Stormwater
Miles of Storm Sewer 57.77 58.22 59.29 59.79 60.37 60.73 68.01 68.47 69.21 70.04
(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
Fiscal Year
City of North Augusta, South Carolina
Capital Asset Statistics by Function / Program
Last Ten Fiscal Years
110
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 $24.76
1 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 $2.50Next 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 unitNon-residential (Inside City only)Each non-residential developed property is classified and charged according to its primary developed use
Volume Rates / Outside City Limits
Base Rates / Outside City Limits
Sewer Rate in effect December 31, 2019
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, 2019
Volume Rates / Outside City Limits
Sanitation Service Charges in effect December 31, 2019
Residential (monthly)
Volume Charge (per cubic yard)
Stormwater Management Service Charges in effect December 31, 2019
City of North Augusta, South Carolina Enterprise Funds Rates and Charges
Rates / Charges in effect December 31, 2019
Base Rates
Base Rates / Outside City Limits
Volume Rates / Inside City Limits
111
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
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
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%
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, 2019
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)
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)
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
112
North
Augusta vy
South Carolina 's Riverfront
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
To the 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, 2019, 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 30, 2020.
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 City’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.
113
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 City’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 City’s internal control and compliance. Accordingly, this communication is not
suitable for any other purpose.
Augusta, Georgia
June 30, 2020
114