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072020 Virtual Study Session Mns Adopted North Au usta\� g South Carolina's Riuerfront MINUTES OF JULY 20. 2020 Robert A. Pettit, Mayor J Robert Brooks, Councilmember Pat C. Carpenter, Councilmember Fletcher L. Dickert, Councilmember David W. McGhee, Councilmember Eric K Presnell, Councilmember Kevin W Toole, Councilmember ORDER OF BUSINESS CVIRTUAL STUDY SESSION The virtual study session for the City Council meeting of the City of North Augusta of July 20, 2020, having been duly publicized, was called to order by Mayor Pettit at 6:00 p.m. using GoToMeeting online conferencing software and streamed online for public viewing at the City Facebook page: "City of North Augusta—Public Information' and City YouTube page: "City of North Augusta Public Information"and recessed at 7:03 p.m. Per Section 30-4-80(e) notice of the meetings was sent out by email to the current maintained "Agenda Mailout" list consisting of news media outlets and individuals or companies requesting notification. Notice of the meetings was also posted on the outside doors of the Municipal Center, the main bulletin board of the Municipal Center located on the first floor, and the City of North Augusta website. Members present were Mayor Pettit, Councilmembers Brooks, Carpenter, Dickert, McGhee, Presnell, and Toole. Also in attendance were Rachelle Moody, Interim City Administrator; Kelly F. Ziey Cammie T. Hayes,Director of Finance and General Services; Richard L.Meyer,Director of Parks,Recreation and Tourism; Libby Hodges, Director of Planning and Development; Ricky Jones, Manager of CInformation Technology and Sharon Lamar,City Clerk. The members of the public and the media were provided access to the meeting via live-streaming video. Minutes of Study Session of July 20,2020 ITEM 1. CITY COUNCIL AGENDA: Items on the July 20,2020 Council CAzenda- Council Discussion Interim City Administrator, Rachelle Moody, led Council's discussion of the July 20, 2020 meeting agenda. ITEM 2. FINANCE: Riverside Villaee at Hammond's Ferry—Quarterly Update Cammie Hayes,Director of Finance and General Services, updated Council on the financial status of thte Riverside Village at Hammond's Ferry project. Please see ATTACHMENT #2 for a copy of the "Continuing Disclosure Requirements: North Augusta Public Facilities Corporation/City of North Augusta Series 2017B Voluntary Filing for the Fiscal Quarter Ended June 30,2020." 1 ROV D THIS DAY OF Respectfully-- � submitted, r s 020 ' . ' A � �"KAA-) Sharon Lamar ORobert A.Pettit, Mayor City Clerk O ATTACHMENT #2 Continuing Disclosure Requirements North Augusta Public Facilities Corporation/City of North Augusta Series 20178 Voluntary Filing for the Fiscal Quarter Ended lune 30, 2020 Assessed Value of Taxable Property The assessed value of all taxable real and personal property in the City for each of the last five years available is set forth in the following table: Assessed Value of Taxable Property Fiscal Year Ended Tax Personal December3l Year Real Property Property u) Total 2019 2018 $ 83,448,499 $ 31,654,277 $ 115,102,776 2018 2017 82,341,248 27,375,296 109,716,544 2017 2016 79,819,959 26,336,665 r 106,156,624 2016 2015 73,065,987 21,623,421 94,689,408 2015 2014 70,710,810 20,984,447 r 91,695,257 I'I Due to a law passed in 1980 by the S.C.General Assembly that provided for the billingand collection of personal property taxes on motorvehicles on a staggered basis according to expiration of the license tag,the City uses different tax years for real and personal property taxes. CTax Rates The millage imposed in the City in each of the last five tax years is set forth below: Tax Rates Fiscal Year Ended Tax Operating Debt Service Total City December 31 Year(l) Millage Millage Millage 2020 2019 73.50 - 73.50 2019 2018 73.50 - 73.50 2018 2017 73.50 - 73.50 2017 2016 70.50 - 70.50 2016 2015 74.21 - 74.21 I'I Due to a law passed in 1980 by the S.C.General Assembly that provided forthe billing and collection of personal property taxes on motorvehicles Iona staggered basis according to expiration of the license tag,the City uses different tax years for real and personal property taxes. C (continued) City General Fund Budget The General Fund Budget for the fiscal year ending December 31,2020 was adopted on December 2,2019 by City Council and is shown in the following table: Annual General Fund Budget for Fiscal Year Ending 12/31/20 Revenues Ad valorem property taxes $ 7,498,967 Licenses and Permits 6,351,000 Fines and forfeitures 1,120,000 Charges for services 1,371,963 Intergovernmental 750,648 Miscellaneous 713,323 Transfers 1,308,967 Total Revenues $ 19,114,868 Expenditures General Government $ 5,711,790 Public Safety 8,843,667 Public Works 1,650,089 Parks, Recreation and Tourism 2,909,322 Total Expenditures $ 19,114,868 A budget adjustment has been proposed for City Council's consideration to adopt on July 20,2020 in response to Cthe current outbreak of the 2019 Novel Coronavirus Disease("COVID-19"). The proposal reduces General Fund Revenues for Charges for services to$646,828 and Miscellaneous to$698,323. It also reduces General Fund Expenditures for General Government to$5,557,825,for Public Safety to$8,716,761,for Public Works to$1,647,218 and Parks, Recreation and Tourism to$2,452,929. The proposed adjustment totals$740,135 and takes into consideration the cancellations and modifications of athletic and other programs as well as cancellations to rental of City facilities. Ten largest Taxpayers in the City The ten largest taxpayers in the City,the assessed value for the fiscal year ended December 31, 2019 of the taxable property of each located within the City,and the amount of 2018 taxes paid to the City are as follows: Ten LargestTaxpayers in the City 12/31/2019 Taxpayer Assessed Value Taxes Paid S.C.Electric&Gas Co. $ 3,449,210 $ 253,517 Allnex Industries,Inc 2,602,230 191,264 Wal-Mart,Inc. 2,512,010 184,633 SUSO 3 Augusta,LP 1,224,300 89,986 SRP Federal Credit Union 1,111,850 81,721 Halocarbon Chemicals,Inc. 1,076,300 79,108 CVS SC Distribution,Inc. 724,870 53,278 NHC Healthcare 712,590 52,375 Lowes Home Centers,Inc. 580,550 42,670 C The Kro er Com any 562,320 41,331 (continued) Tax Collection Record of the City The following table shows the amount of taxes levied for City purposes,including additions and abatements,taxes collected as of December 31 of the year following the year in which the levy was made,and the amount of delinquent taxes collected in the City for the fiscal years shown: Tax Collection Record of the City Collected within the Fiscal Year of the Levy Total Collections to Date Fiscal Year Ended Taxes Levied Percentage Collections in Percentage December 31 Tax Year l'I for Fiscal Year Amount of Levy Subsequent Years Amount of Levy 2019 2018 $ 8,460,054 $ 8,404,331 99.34% $ - $ 8,404,331 99.34% 2018 2017 8,064,166 8,018,222 99.43% 14,731 8,032,953 99.61% 2017 2016 7,484,042 7,446,013 99.49% 8,288 7,454,301 99.60% 2016 2015 7,026,901 6,992,988 99.52% 9,980 7,002,968 99.66% 2015 2014 6,804,705 6,762,260 99.38% 21,510 6,783,770 99.69% I'I Due to a law passed in 1980 by the S.C.General Assembly that provided for the billing and collection of personal property taxes on motor vehicles on a staggered basis according to expiration of the license tag,the City uses different tax years for real and personal property taxes. Outstanding Indebtedness Outstanding Indebtedness 12/31/2019 General Obligation Debt $ - C Tax Increment Debt 43,437,000 Includes Series 2017A Bonds*see note below Outstanding Installment Purchase Revenue Bonds 69,450,000 Series 20178 Bonds*see note below Outstanding Lease Purchase Obligations 2020 848,264 2021 663,520 2022 487,109 2023 270,634 Subtotal 2,269,527 Interest (113,076) Present Value of minimum lease payments 2,156,451 Revenue Debt Waterand Wastewater Bonds,Series 2014A 10,290,474 Matures February 1,2035 Water and Wastewater Bonds,Series 2015A 8,599,506 Matures December 1,2036 *The North Augusta Public Facilities Corporation purchased the City's 2017A TIF Obligation ($43,412,000 outstanding as of 12/31/2019)pursuant to which the City makes semi-annual payments to the Corporation from TIF Revenues.These payments are assigned to the Trustee for the Series 20178 Bonds and provide a credit against installment payments due in each year. The City's legal debt margin as of 12/31/2019 equaled$9,208,222. C (continued) Identified Sources of Installment Payments General Obligation Bonds The City is authorized by the State Constitution to incur general obligation indebtedness without voter approval in an amount not exceeding eight percent of the assessed value of all taxable property in the City for any corporate purpose of the municipality.As of 6/30/20 the City's entire eight percent capacity is available. On November 6,2018,a favorable bond referendum was held in the City of North Augusta authorizing the City to issue not exceeding$10,250,000 of general obligation bonds as part of a favorable Capital Projects Sales Tax referendum. These bonds were issued in 2020 to construct and equip a public safety headquarters and bond payments will be made from revenues collected from the capital projects sales tax. General Obligation Bond!. Fiscal Year Amount 2020"1 $10,250,000 2019 2018 2017 2016 I"UNAUDITED Local Hospitality Taxes City Council,pursuant to the Local Hospitality Tax Act and the Hospitality Tax Ordinance, established a uniform hospitality tax,which imposed,effective December 1, 1998,a one percent(1%)tax on the sales of prepared meals and beverages, including alcoholic beverages, beer and wine,at businesses within the City. Effective December 1, 2017,the hospitality tax rate was raised to the maximum of two percent(2%)with collections beginning in January 2018. CLocal Hospitality Taxes Increase in City Collections Hospitality over Prior Fiscal Year Taxes Fiscal Year 20201st&2nd Qtr I" $ 814,135 N/A 2019 1,788,174 11.13% 2018 1,609,103 118.67 2017 735,845 3.18 2016 713,152 7.27 2015 664,804 9.68 2014 606,121 5.86 0.,UNAUDITED O (continued) Local Accommodations Taxes City Council, pursuant to the Local Accommodations Tax Act and the Accommodations Tax Ordinance established a local accommodations tax,which imposed,effective December 1, 1998,a three percent(3%)tax on furnishing of accommodations to transients within the City. Local Accommodations Taxes Increase (Decrease)in City Collections Accommodations over Prior Fiscal Year Taxes Fiscal Year 20201st&2nd Qtr I'I $ 53,473 N/A 2019 229,047 109.96% 2018 109,092 98.70 2017 54,904 7.86 2016 50,904 3.68 2015 49,099 (11.39) 2014 55,410 9.88 Itl UNAUDITED Tax Increment Revenues The TIF Act authorizes municipalities to incur indebtedness for the purpose of redevelopment in areas which are or which are threatened to become blighted and to fund the debt service of such indebtedness from the additional tax revenues which result from such redevelopment. Under the TIF Act, all property taxes of all taxing jurisdictions imposed and collected within the Redevelopment Project Area in excess of the amount attributable to the"total initial equalized assessed value'of all taxable real property in the Redevelopment Project Area shall be paid to the municipality which shall deposit the taxes into a special tax allocation fund for the purpose of paying redevelopment project costs and discharging the obligations incurred in the payment of such costs. Certain portions of the taxes deposited to or otherwise subject to deposit to the special tax allocation fund are disbursed to overlapping taxing entities in accordance with agreements between the City and political subdivisions pursuant to which they agreed to participate in the TIF on a modified basis.As of 6/30/20,no funds had been disbursed to overlapping taxing entities. Tax Increment Revenues Fiscal Year City TIF Revenues %Growth 20201st&2nd Qtr Itl $ 1,464,507 N/A 2019 804,992 7% 2018 751,052 22 2017 -613,831 19 2016 516,829 14 2015 453,883 9 2014 417,373 N/A 01 UNAUDITED C (continued) MID Assessments The municipal improvement district(MID District)consists of certain parcels owned by the private developers within the TIF District where private improvements will be constructed. The City has imposed a special assessment on the parcels in the MID District owned by the private developers. The special assessment has been set on an annual basis at an amount equal to an estimate of the TIF revenues that will result from the private improvement specified in the Master Development Agreement. 2020 is the first year the special assessments were billed and payable. These assessments are due to the City no later than May 1 in the year the special assessments are billed to avoid penalty. Penalties have been assessed on all outstanding MID special assessments. MIDAssessments Fiscal Year Ended MID MID December3l Tax Year Assessments Receipts 20201st&2nd 2019 $ 1,183,327 $ 364,548 (t)UNAUDITED Parking Revenues Parking revenues are received from certain parking facilities owned or operated by the City including the Medac Deck, Hotel Deck and various lots owned by the City. Revenues received are netted against expenditures incurred for operations and maintenance of the parking facilities. Parking Revenues Net % Fiscal Year Amount Growth 20201st&2nd Qtrltl $ 9,639 N/A 2019 128,499 18% 2018 108,885 N/A Cnl UNAUDITED Stadium Revenues Stadium revenues are received from GreenJackets Baseball for performance license fees,retail space rent,corporate naming rights,and stadium rent. The GreenJackets Baseball 2020 season was canceled on lune 30, 2020 along with all Minor League Baseball teams. Admissions tax payments are received from the South Carolina Department of Revenue(SCDOR). Stadium Revenues Performance Corporate Admissions License Fees Retail Space Naming Fiscal Year Tax(5) (2) Re nt lal Rights(4) Rent lal Total 20201st&2nd Qtr ul $ 12,294 $ 74,894 $ - $ - $ 100,000 $187,188 2019 71,244 64,884 100,000 100,000 250,000 586,128 2018 18,336 - 100,000 100,000 250,000 468,336 I'I UNAUDITED In Revenue stream due 1/31/xx of each year for the prior calendar year Ial Revenue stream due 4/1/xx of each year (0)Revenue stream due 12/31/xx of each year ls1 Payments received throughout the yearfrom SCDOR CPlease refer to the City of North Augusta's Comprehensive Annual Financial Report and Official Statement with respect to the Series 20178 Bonds for additional information about the City. Please also refer to the City's additional voluntary disclosure related to the Coronavirus(COVID-19)Outbreak.