12.31.2021 Annual Comprehensive Financial ReportCITY OF NORTH AUGUSTA
SOUTH CAROLINA
ANNUAL COMPREHENSIVE
FINANCIAL REPORT
YEAR ENDED
DECEMBER 31, 2021
Prepared by Department of Finance
Cammie T. Hayes, Chief Financial Officer
North Augusta
South Carolina's Riverfront
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE YEAR ENDED DECEMBER 31, 2021
TABLE OF CONTENTS
Page Number
INTRODUCTORY SECTION
Letter of Transmittal ........................................................................................................................................ i - vi
GFOA Certificate of Achievement ..................................................................................................................... vii
City Organizational Chart ................................................................................................................................. viii
Principal Officials ................................................................................................................................................ ix
FINANCIAL SECTION
Independent Auditor’s Report ........................................................................................................................ 1 - 4
Management’s Discussion and Analysis .................................................................................................... 5 - 14
Basic Financial Statements:
Government-wide Financial Statements
Statement of Net Position ........................................................................................................................ 15
Statement of Activities .............................................................................................................................. 16
Fund Financial Statements
Balance Sheet – Governmental Funds .................................................................................................... 17
Reconciliation of the Governmental Funds Balance Sheet to the
Statement of Net Position .................................................................................................................... 18
Statement of Revenues, Expenditures and Changes in Fund
Balances – Governmental Funds ........................................................................................................ 19
Reconciliation of the Statement of Revenues, Expenditures and Changes in
Fund Balances of Governmental Funds to the Statement of Activities .......................................... 20
General Fund – Statement of Revenues, Expenditures and Changes in
Fund Balance – Budget and Actual ..................................................................................................... 21
Statement of Net Position – Proprietary Funds ..................................................................................... 22
Statement of Revenues, Expenses and Changes in Net Position –
Proprietary Funds ................................................................................................................................. 23
Statement of Cash Flows – Proprietary Funds .......................................................................... 24 and 25
Notes to Financial Statements .............................................................................................................. 26 - 60
Required Supplementary Information:
Schedule of Proportionate Share of the Net Pension Liability –
South Carolina Retirement System ..................................................................................................... 61
Schedule of Proportionate Share of the Net Pension Liability –
Police Officers Retirement System ..................................................................................................... 61
Schedule of Contributions –
South Carolina Retirement System ......................................................................................... 62 and 63
Schedule of Contributions –
Police Officers Retirement System ......................................................................................... 62 and 63
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE YEAR ENDED DECEMBER 31, 2021
TABLE OF CONTENTS (CONTINUED)
Page Number
Other Supplementary Information:
Combining and Individual Nonmajor Fund Financial Statements:
General Fund – Schedule of Revenues and Expenditures Compared
with Budget ..................................................................................................................................... 64 - 72
Combining Balance Sheet – Nonmajor Governmental Funds .............................................................. 73
Combining Statement of Revenues, Expenditures and Changes in Fund
Balances – Nonmajor Governmental Funds ...................................................................................... 74
Combining Balance Sheet – Nonmajor Special Revenue Funds ......................................................... 75
Combining Balance Sheet – Nonmajor Capital Projects Funds ........................................................... 76
Combining Statement of Revenues, Expenditures and Changes in Fund
Balances – Nonmajor Special Revenue Funds .................................................................................. 77
Combining Statement of Revenues, Expenditures and Changes in Fund
Balances – Nonmajor Capital Projects Funds ................................................................................... 78
Enterprise Fund – Water and Wastewater System Fund:
Schedule of Revenues and Expenses – Budget and Actual – GAAP Basis ................................... 79
Schedule of Operating Expenses – Budget and Actual – GAAP Basis ............................... 80 and 81
Enterprise Fund – Stormwater Utility Fund:
Schedule of Revenues and Expenses – Budget and Actual – GAAP Basis ................................... 82
Schedule of Operating Expenses – Budget and Actual – GAPP Basis ........................................... 83
Enterprise Fund – Sanitation Services Fund:
Schedule of Revenues and Expenses – Budget and Actual – GAAP Basis ................................... 84
Schedule of Operating Expenses – Budget and Actual – GAAP Basis ........................................... 85
Supplementary Information Required by the State of South Carolina:
Uniform Schedule of Court Fines, Assessments and Surcharges (per ACT 96) .................... 86 and 87
STATISTICAL SECTION
Financial Trends Information:
Net Position by Component ..................................................................................................................... 88
Changes in Net Position ............................................................................................................... 89 and 90
Fund Balances, Governmental Funds ..................................................................................................... 91
Changes in Fund Balances, Governmental Funds ................................................................................ 92
Revenue Capacity Information:
Assessed Value and Estimated Actual Value of Taxable Property ...................................................... 93
Direct and Overlapping Property Tax Rates ........................................................................................... 94
Principal Property Taxpayers .................................................................................................................. 95
Property Tax Levies and Collections ...................................................................................................... 96
Business Licenses/Franchise Fees ......................................................................................................... 97
Number of Utility Customers ................................................................................................................... 98
Ten Largest Water and Wastewater Customers .................................................................................... 99
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE YEAR ENDED DECEMBER 31, 2021
TABLE OF CONTENTS (CONTINUED)
Page Number
STATISTICAL SECTION (CONTINUED)
Debt Capacity Information:
Ratio of Outstanding Debt by Type ........................................................................................................... 100
Ratios of General Bonded Debt Outstanding ........................................................................................... 101
Direct and Overlapping Governmental Activities Debt ........................................................................... 102
Legal Debt Margin Information .................................................................................................................. 103
Pledged Revenue Bond Coverage ............................................................................................................. 104
Demographic and Economic Indicators:
Economic Statistics .................................................................................................................................... 105
Principal Employers .................................................................................................................................... 106
Full-time Budget Equivalent Employees by Fund/Function/Department .............................................. 107
Operating Information:
Operating Indicators by Function/Program .............................................................................................. 108
Capital Asset Statistics by Function/Program ......................................................................................... 109
Enterprise Fund Rates and Charges ......................................................................................................... 110
Enterprise Funds History of Rates and Charges ..................................................................................... 111
COMPLIANCE SECTION
Independent Auditor’s Report 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 ....................... 112 and 113
Schedule of Findings and Responses ........................................................................................................... 114
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INTRODUCTORY
SECTION
North · Augusta
South Carolina's Riverfront
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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 Carolina bank of the Savannah River. The City is approximately 70 miles west
of the South Carolina capital, Columbia, and 150 miles east of the Georgia capital, Atlanta. The
City’s nearest neighbor is Augusta, Georgia, located just across the Savannah River. North
Augusta offers the best of both worlds - an idyllic, small-town lifestyle amid all the benefits of big
city living. The City encompasses approximately 22 square miles. The 2020 population of the
City is estimated to be 24,379 with a total of approximately 168,808 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,
presides at all meetings of City Council, and is the recognized head of the City. 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 and City Council appoint
the City Administrator for an authorized term. The City Administrator is responsible to the Mayor
for the proper administration of all affairs placed in their charge. 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 General 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.
Public Service Enterprises: The City furnishes water, wastewater, stormwater management
and garbage collection to residents of the City. The City also provides water, wastewater, garbage
collection and fire protection to some customers located outside the City limits but within the
City’s service area. The City has also entered into agreements with the Valley Public Service
Authority and the Edgefield County Water and Sewer Authority to provide water and/or
wastewater service to certain customers within their service areas. Because of the varying terrain
in and around North Augusta, the distribution system for the City’s water supply is divided into
three service levels to control pressure. Our current maximum pumping capacity is 12 MGD
(million gallons per day).
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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 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 service 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.
The system is so designed that it can be enlarged into a 40 MGD facility. It has undergone
improvements, of which the City of North Augusta is paying a proportional amount.
Aiken County Public Service Authority 20.0 MGD Facility
Capacities by User
As of June 30, 2021
Present Allocation (MGD) Present Use (MGD)
City of North Augusta 8.672 5.22112
City of Aiken 7.134 5.65525
Aiken County 1.030 0.00000
Allnex,Inc .900 0.06002
Bath .070 0.02915
Breezy Hill 1.407 0.52502
Beech Island Water & Sewer .060 0.00715
Clearwater .050 0.04048
Langley .060 0.03145
Valley Public Service Authority .417 0.40381
PACTIV Advanced Packaging Solutions .050 0.01436
Kimberly Clark .150 0.04352
Uncommitted .000 0.00000
Total 20.000 12.03133
Aiken County, to include the Aiken County Public Service Authority, the Valley Public Service
Authority, and the Edgefield County Water and Sewer Authority, are independent entities and are
not included in this report. Financial statements can be obtained from the respective entities.
The annual budget serves as the foundation for the City of North Augusta’s financial planning and
control. All Leadership Team members of the City are required to submit requests for
appropriation to the City Administrator by 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 during 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
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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 and is fortunate
to have moved forward despite the impacts of the COVID-19 pandemic. 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 2020 Decennial Census showed that North Augusta
had grown to a population of 24,379 from 21,348 in 2010, an increase of more than 14 percent and
an average annual increase of approximately 1.5 percent. The City estimates the City population
to be 24,745 for 2021.
During the past ten years, Aiken County’s unemployment rate has fluctuated from 9.1 percent in
2011, decreasing to 2.8 percent during 2019, and then increasing to 3.4 percent for 2021. The
2021 rate is slightly lower than South Carolina’s 2021 unemployment rate of 4.0 percent and less
than the 2021 national rate of 5.3 percent. The increases in unemployment rates since 2019 reflect
the impacts of the COVID-19 pandemic.
Median household incomes within the City of North Augusta continue to be higher than for the
state as a whole. According to the United States Census Bureau (USCB), the City’s median family
income is $63,795, Aiken County’s is $53,385, and the State’s is $54,864. Housing prices in the
City continue to remain strong. Per the USCB, the median price of a single family home in the
City is $170,000.
The City continues to experience significant economic growth and investment. Residential
building activity in North Augusta continues with subdivision infrastructure and single-family
construction in Bergen West, Wando Woodlands, Gregory Landing, Rushing Waters, Walnut
Village, River North, Austin Heights, and Hammond’s Ferry. We continue to see development
plans and growth at interstate access points and surrounding areas leading into our city including
commercial construction for food service establishments and professional services.
The City has continued 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 third season in the 4,500 seat SRP Park during 2021 and became the new Low-A
affiliate for the Atlanta Braves to begin a new era of GreenJackets baseball. In addition, 314
apartments, a hotel and conference center, as well as several restaurants and the stadium parking
deck have been completed at Riverside Village. To date, the City has constructed the stadium, two
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parking decks, the public infrastructure and contribution of funds toward the conference center,
and completion of a riverfront park known as the Sharon Jones Amphitheater. 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
During the year, City Council and Staff have met in planning sessions. 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 2021 reflecting recovery from the impacts of COVID-19. 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 began in 2020. These funds have
been earmarked for a variety of projects as mentioned above.
During the year, the City received its first tranche of funding in Coronavirus State and Local Fiscal
Recovery Funds in excess of $5,000,000 with the second tranche expected in the fall of 2022. The
City has since elected to use the standard allowance of $10,000,000 for revenue loss and obligate
to fund general government services as well as an additional $1,800,000 obligated towards
investment in water and sewer infrastructure.
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 12/31/2021
is $2,834,351.
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
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North
Augusta
South Carolina's Riverfront
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of North Augusta
South Carolina
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
December 31, 2020
Executive Director/CEO
vii
viii
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
LIST OF ELECTED AND APPOINTED OFFICIALS
December 31, 2021
ELECTED OFFICIALS
Briton S. Williams, Mayor
J. Robert Brooks, Councilman, Mayor Pro Tempore Pat C. Carpenter, Councilwoman
Jenafer F. McCauley, Councilwoman
David W. McGhee, Councilman
Eric H. Presnell, Councilman
Kevin W. Toole, Councilman
APPOINTED OFFICIALS
James S. Clifford, City Administrator Rachelle M. Moody, Assistant City Administrator
Kelly F. Zier, City Attorney
Sharon Lamar, City Clerk
Cammie T. Hayes, Chief Financial Officer
Richard L. Meyer, Director of Parks, Recreation & Tourism Thomas L. Paradise, Interim Director of Planning & Development James E. Sutton, Director of Public Services
John C. Thomas, Director of Public Safety
Thomas C. Zeaser, Director of Engineering & Public Works
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FINANCIAL
SECTION
North August
South Carolina's Riuerjront
508 HAMPTON STREET, 1ST FLOOR • COLUMBIA, SC 29201 • 803-799-5810 • FAX 803-799-5554 • www.mjcpa.com
MEMBERS OF THE AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS
INDEPENDENT AUDITOR’S REPORT
Honorable Mayor and Members
of the City Council
City of North Augusta, South Carolina
Report on the Audit of the Financial Statements
Opinions
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, 2021, and the related notes to the financial statements, which
collectively comprise the City’s basic financial statements as listed in the table of contents.
In our opinion, the accompanying 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 of North Augusta, South Carolina, as of December 31, 2021, and
the respective changes in financial position, and, where applicable, cash flows thereof, and the budgetary
comparisons for the General Fund for the year then ended in accordance with accounting principles generally
accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America
(GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States. Our responsibilities under those standards are further described in the
Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be
independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical
requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate
to provide a basis for our audit opinions.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in accordance with
accounting principles generally accepted in the United States of America, and for 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.
.
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In preparing the financial statements, management is required to evaluate whether there are conditions or events,
considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for
twelve months beyond the financial statement date, including any currently known information that may raise
substantial doubt shortly thereafter.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions.
Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee
that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material
misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for
one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the
override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually
or in the aggregate, they would influence the judgment made by a reasonable user based on the financial
statements.
In performing an audit in accordance with GAAS and Government Auditing Standards, we:
Exercise professional judgment and maintain professional skepticism throughout the audit.
Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or
error, and design and perform audit procedures responsive to those risks. Such procedures include
examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
Obtain an understanding of internal control relevant to the audit 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, no such opinion is expressed.
Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting
estimates made by management, as well as evaluate the overall presentation of the financial statements.
Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise
substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned
scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified
during the audit.
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Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management’s Discussion
and Analysis (on pages 5 through 14), the Schedule of Proportionate Share of the Net Pension Liability – South
Carolina Retirement System (page 61), the Schedule of Proportionate Share of the Net Pension Liability – Police
Officers Retirement System (page 61), the Schedule of Contributions – South Carolina Retirement System (pages
62 and 63) and the Schedule of Contributions – Police Officers Retirement System (pages 62 and 63) be presented
to supplement the basic financial statements. Such information is the responsibility of management and, 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.
Supplementary 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 combining and individual nonmajor fund financial statements are
presented for purposes of additional analysis and are not a required part of the basic financial statements. The
Uniform Schedule of Court Fines, Assessments and Surcharges (per ACT 96) is presented for purposes of
additional analysis as required by the State of South Carolina and is not a required part of the basic financial
statements. Such information is the responsibility of management and was derived from and relates directly to the
underlying accounting and other records used to prepare the basic financial statements. The 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 combining and individual nonmajor fund financial statements, the General Fund budget and actual
schedule, the enterprise fund budget and actual schedules, and the Uniform Schedule of Court Fines, Assessments
and Surcharges (per ACT 96) are fairly stated, in all material respects, in relation to the basic financial statements as
a whole.
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Other Information
Management is responsible for the other information included in the annual report. The other information comprises
the introductory and statistical sections but does not include the basic financial statements and our auditor’s report
thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express
an opinion or any form of assurance thereon.
In connection with our audit of the basic financial statements, our responsibility is to read the other information and
consider whether a material inconsistency exists between the other information and the basic financial statements,
or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude
that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated May 17, 2022, 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
solely 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 the effectiveness of the City’s 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.
Columbia, South Carolina
May 17, 2022
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North
Augusta
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, 2021. 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 $141,089,614 (net position). Of
this amount, ($3,886,721), represents unrestricted net position, which may be used to meet the
government’s ongoing obligations to citizens and creditors. This number is negative following the
implementation of Governmental Accounting Standards Board (“GASB”) Statement No. 68, which
required the City to recognize as a long-term liability, its proportionate share of the net pension
liability of the South Carolina Retirement System and the Police Officer Retirement System.
The City’s total net position increased by $6,164,921.
At the close of the current fiscal year, the City’s governmental funds reported combined fund
balances of $29,150,879 an increase of $4,622,137 in comparison with the prior year. The
majority of the increase is reflective of the release of COVID-19 related restrictions from the prior
year. The City experienced the return of large athletic tournaments, recreation sports programs,
and rentals of City facilities for other events during 2021. Both residential and commercial
construction activity continues to rise in the City, resulting in increases to both business license
and permit revenue streams. Approximately 10.72 percent of the governmental funds combined
fund balance, $3,125,000, 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 $5,959,351 or
31.24 percent of total general fund expenditures.
The City’s outstanding debt decreased by ($650,079) 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 in addition to the basic financial statements
themselves.
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.
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The statement of net position presents information on all of the City’s assets, liabilities, and deferred
inflows/outflows of resources with the difference reported as net position. Over time, increases and
decreases in net position may serve as a useful indicator of whether the financial position of the City is
improving or deteriorating.
The statement of activities presents information showing how the City’s net position changed during the
most recent fiscal year. All changes in net position are reported as soon as the underlying event giving
rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses
are reported for some items that will only result in cash flows in future fiscal periods (e.g., uncollected
taxes and earned but unused vacation leave).
Both of the government-wide financial statements distinguish functions of the City that are principally
supported by taxes and intergovernmental revenues (governmental activities) from other functions that
are intended to recover all or a significant portion of their costs through user fees and charges (business-
type activities). The governmental activities of the City include general government, public safety, public
works, and parks, recreation, and tourism. The business-type activities of the City include water and
wastewater utility, sanitation services, and stormwater enterprise.
The government-wide financial statements include not only the City itself (known as the primary
government), but also a legally separate public facilities corporation for which the City is financially
accountable. The corporation, although a legally separate entity, functions for all practical purposes as a
fund of the City and therefore has been included as an integral part of the primary government.
The government-wide financial statements can be found immediately following this discussion and
analysis.
Fund Financial Statements
A fund is a grouping of related accounts that is used to maintain control over resources that have been
segregated for specific activities or objectives. The City, like other local governments, uses fund
accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the
funds of the City can be divided into two categories: governmental funds and proprietary funds. The City
does not have a fiduciary fund.
Governmental funds. Governmental funds are used to account for essentially the same functions
reported as governmental activities in the government-wide financial statements. However, unlike the
government-wide financial statements, governmental fund financial statements focus on near-term inflows
and outflows of spendable resources, as well as on balances of spendable resources available at the end
of the fiscal year. Such information may be useful in evaluating a government’s near-term financing
requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial
statements, it is useful to compare the information presented for governmental funds with similar
information presented for governmental activities in the government-wide financial statements. By doing
so, readers may better understand the long-term impact of the government’s near-term financing
decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues,
expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between
governmental funds and governmental activities.
The City maintains fourteen individual governmental funds. Information is presented separately in the
governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and
changes in fund balance for the General Fund which is considered a major fund. Information is also
presented separately for the Capital Projects Sales Tax IV Fund, Capital Projects Fund, Tax Increment
Fund, North Augusta Public Facilities Corporation Fund, and American Rescue Plan Act Fund (ARPA)
which the City elects to present as major funds. Information from the other eight governmental funds are
6
combined into a single aggregated presentation. Individual fund data for each of these nonmajor
governmental funds is provided in the form of combining statements in this report.
The City adopts an annual appropriated budget for its General Fund. A budgetary comparison statement
has been provided for the General Fund to demonstrate compliance with the budget.
The basic governmental fund financial statements can be found immediately following the government-
wide financial statements.
Proprietary funds. The City maintains one type of proprietary fund. Enterprise funds are used to report
the same functions presented as business-type activities in the government-wide financial statements.
The City uses enterprise funds to account for its water, wastewater, sanitation, and stormwater operations
as well as the Savannah Bluff Lock and Dam that was created for the purpose of maintaining the Augusta
pool on the Savannah River.
Proprietary funds provide the same type of information as the government-wide financial statements, only
in more detail. The proprietary fund financial statements provide separate information for the water,
wastewater, sanitation and stormwater operations, all of which are considered to be major funds of the
City. Savannah Bluff Lock and Dam is a nonmajor fund. The proprietary fund financial statements can
be found immediately following the governmental fund financial statements.
Notes to the Financial Statements. The notes provide additional information that is essential to a full
understanding of the data provided in the government-wide and fund financial statements. The notes to
the financial statements can be found immediately following the proprietary fund financial statements.
Other Financial Information. In addition to the basic financial statements, the accompanying notes, and
the required supplementary information, this report presents certain financial data of individual fund
statements and schedules.
Government-wide Financial Analysis
As noted earlier, net position over time may serve as a useful indicator of a government’s financial
position. In the case of the City, assets and deferred outflows of resources exceeded liabilities and
deferred inflows of resources by $141,089,614 at the close of the most recent fiscal year.
City of North Augusta's Net Position
2021 2020 2021 2020 2021 2020
Current and other assets 37,635,953$ 27,287,517$ 22,587,891$ 21,181,824$ 60,223,844$ 48,469,341$
Capital assets 134,843,278 134,760,030 81,240,116 81,310,306 216,083,394 216,070,336
Total Assets 172,479,231 162,047,547 103,828,007 102,492,130 276,307,238 264,539,677
Deferred outflows of resources 2,205,652 2,666,507 1,182,727 1,180,716 3,388,379 3,847,223
Long-term liabilities outstanding 95,413,586 98,835,358 27,717,045 29,348,843 123,130,631 128,184,201
Other liabilities outstanding 8,908,079 2,299,780 1,791,518 1,823,994 10,699,597 4,123,774
Total Liabilities 104,321,665 101,135,138 29,508,563 31,172,837 133,830,228 132,307,975
Deferred inflow of resources 3,489,930 799,007 1,285,845 355,225 4,775,775 1,154,232
Net position:
Net investment in capital assets 54,204,071 64,277,060 62,504,303 61,930,753 116,708,374 126,207,813
Restricted 19,786,412 7,848,687 8,481,549 8,358,324 28,267,961 16,207,011
Unrestricted (7,117,195) (9,345,838) 3,230,474 1,855,707 (3,886,721) (7,490,131)
Total Net Position 66,873,288$ 62,779,909$ 74,216,326$ 72,144,784$ 141,089,614$ 134,924,693$
Governmental Activities Business-type Activities Total
By far, the largest portion of the City’s net position, 82.72 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
7
spending. Although the City’s investment in capital assets is reported net of related debt, it should be
noted that the resources needed to repay this debt must be provided from other sources since the capital
assets themselves cannot be used to liquidate these liabilities.
An additional portion of the City’s net position, 20.04 percent, represents resources that are subject to
external restrictions on how they may be used. The remaining balance of ($3,886,721) 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 2021, governmental activities increased the City’s net position by $4,093,379. Governmental
activities revenues increased $4,616,520 from 2020 to 2021 primarily due to an increase in charges for
services as well as an increase in other taxes. Property taxes represent 37.81 percent of total revenues
for governmental activities and increased $749,764 from 2020 due to increased development in the City.
Charges for services include: business license revenues, franchise fees, construction permits,
recreational programs, rentals and tournaments, and public safety fines. These revenues represent 33.27
percent of total revenues for governmental activities and are predominantly elastic in nature and vary with
economic trends. Charges for services increased $1,506,076 related to continued increases in
construction activity along with the return of large athletic tournaments and other recreational programs.
The release of COVID-19 restrictions also increased rentals of City facilities. Other tax revenue increased
107.00 percent compared to the prior year as a result of the release of COVID-19 restrictions related to
overnight travelers and restaurant dining. Aiken County also implemented new revenue distribution
procedures for the fourth round of capital projects sales tax.
Also, during 2021, governmental activities expenses increased by $78,424. General government
expenses increased slightly by $150,142. Parks, Recreation, and Tourism expenses increased $826,175,
or 24.51 percent, due to the return of large athletic tournaments and other recreational programs and the
related expenses. Public Works expenses were consistent with the prior year. Public Safety expenses
reflected a decrease of (8.66) percent over the prior year due to a reduction in expenses related to large
construction projects.
8
City of North Augusta's Changes in Net Position
2021 2020 2021 2020 2021 2020
Revenues:
Program revenues:
Charges for services 10,016,051$ 8,509,975$ 16,788,234$ 16,349,563$ 26,804,285$ 24,859,538$
Operating grants and contributions 960,878 1,287,442 - - 960,878 1,287,442
Capital grants and contributions 2,199,191 1,788,037 1,332,381 1,325,388 3,531,572 3,113,425
General revenues:
Property taxes 11,382,532 10,632,768 - - 11,382,532 10,632,768
Other taxes 4,155,328 2,007,435 - - 4,155,328 2,007,435
Other 1,392,279 1,264,082 830,698 1,129,857 2,222,977 2,393,939
Total Revenues 30,106,259 25,489,739 18,951,313 18,804,808 49,057,572 44,294,547
Expenses:
General government 8,020,594 7,870,452 - - 8,020,594 7,870,452
Public safety 8,713,621 9,539,596 - - 8,713,621 9,539,596
Public works 2,952,922 2,924,751 - - 2,952,922 2,924,751
Parks, recreation, and tourism 4,197,184 3,371,009 - - 4,197,184 3,371,009
Interest and fiscal charges on debt service 3,347,376 3,447,465 - - 3,347,376 3,447,465
Water and wastewater - - 10,164,461 10,410,462 10,164,461 10,410,462
Sanitation - - 4,479,166 4,626,296 4,479,166 4,626,296
Stormwater - - 883,357 840,358 883,357 840,358
Savannah Bluff Lock and Dam - - 133,970 192,673 133,970 192,673
Total Expenses 27,231,697 27,153,273 15,660,954 16,069,789 42,892,651 43,223,062
Increase (decrease) in net position before transfers 2,874,562 (1,663,534) 3,290,359 2,735,019 6,164,921 1,071,485
Transfers 1,218,817 1,158,234 (1,218,817) (1,158,234) - -
Increase in net position 4,093,379 (505,300) 2,071,542 1,576,785 6,164,921 1,071,485
Net position-beginning of year 62,779,909 63,285,209 72,144,784 70,567,999 134,924,693 133,853,208
Net position-end of year 66,873,288$ 62,779,909$ 74,216,326$ 72,144,784$ 141,089,614$ 134,924,693$
Governmental Activities Business-type Activities Total
Business-type Activities
Business-type activities increased the City’s net position by $2,071,542. Water, wastewater, sanitation
and stormwater rates remained unchanged. Water sales increased 3.6 percent over the prior year and
were over budget by approximately $422,000 related to an increase in usage and customer base as well
as a sale of 29,542,000 gallons to a service district customer. Sewer sales increased approximately
$323,000, 4.73 percent, over the prior year also related to an increase in customer base. Fees for
sanitation services and recycling decreased approximately ($83,000) from the prior year due to a
decrease in commercial tipping tons coming in under budget by approximately ($153,000). The amount of
waste material being processed by the City’s Materials Recovery Facility (MRF) was less than anticipated
during the year due vehicle and equipment failures as well as a fire at the facility. Stormwater fees
increased 2 percent as anticipated due to additional customers.
9
Expenses for the Water and Wastewater System decreased by ($364,520) from the prior year primarily
due to decreased expenses from Aiken County Public Service Authority for wastewater treatment as well
as fewer capital project expenses in the water and wastewater divisions. In 2021, the expenses for the
Sanitation Services Fund showed a decrease from the prior year of ($164,309) due to decreased
personnel costs related to vacant positions in the sanitation division. Increased expenses in the
Stormwater Utility Fund were $43,434 due to increased depreciation of capital assets. A total of
$133,970 was expended from the Savannah Bluff Lock and Dam Fund. This expense for professional
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 discretionary use as they represent the portion of fund balance
that has not been limited for use by any of: an external party, the City itself, or a group or individual that
has been delegated authority to assign resources for use for particular purposes by the City Council.
At December 31, 2021, the City’s governmental funds reported combined fund balances of $29,150,879
an increase of $4,622,137 from the prior year. The majority of this increase is attributable to the collection
of all outstanding taxes, special assessments, penalties, and interest for several parcels in Riverside
Village along with the release of COVID-19 related restrictions prompting the return of large athletic
tournaments, recreation programs, and facility rentals. Also, as mentioned previously, both residential
and commercial construction continued to increase throughout 2021. Approximately 10.72 percent of this
amount constitutes unassigned fund balance, which is available for spending at the City’s discretion as
described above. Unassigned fund balance increased by $125,000 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 remainder of fund balance is restricted, committed, or assigned to indicate
that it is not available for new spending because of its use for state victim’s assistance, fire division of
public safety, capital projects to include those funded by capital projects sales taxes, and special projects
to include Riverside Village.
10
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 $3,125,000, while total fund balance was $6,082,682.
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 16.38 percent of total General
Fund expenditures, while total fund balance represents 31.88 percent of those same expenditures.
The total fund balance of the City’s general fund increased by $2,273,917 during the current fiscal year.
The most significant factor in this net increase is related to the return of programming, events and facility
rentals in response to released COVID-19 restrictions.
The ARPA Fund was added as a major fund in 2021 due to receipt of the first tranche of funding as
awarded to the City as part of the Act. These funds are to be used to respond to COVID-19 related
impacts to include replacement of lost revenue. The Capital Projects Sales Tax IV Fund had an increase
of $1,322,499 related to receipt of sales tax funds to be used for debt service payments in 2022. The
Capital Projects Fund had a fund balance of $2,854,806, an increase of 18.57 percent, due to the
issuance of a capital lease to fund new radios for the Public Safety Department. The Tax Increment Fund
had an increase in fund balance of $317,709 due to increased collection of ad valorem property taxes
resulting from growth in the tax increment district. These revenues are dedicated towards debt service
and are transferred to the North Augusta Public Facilities Corporation Fund. Fund balance for the North
Augusta Public Facilities Corporation Fund increased 114.54 percent from the prior year due to the
collection of all outstanding taxes, special assessments, penalties, and interest for several parcels in
Riverside Village.
Fund balance for the City’s nonmajor governmental funds totaled $5,751,874 for 2021, a decrease of
($1,048,328) primarily related to increased capital outlay expenditures for public safety construction
projects as well as tourism capital projects as compared to the prior year. Also, the nonmajor
governmental revenues that are dedicated towards debt service were transferred to the North Augusta
Public Facilities Corporation Fund.
Proprietary funds. The City’s proprietary funds provide the same type of information found in the
government-wide financial statements, but in more detail. Unrestricted net position of the water and
wastewater system, sanitation services, and stormwater utility at the end of the fiscal year totaled
$3,230,474. Total growth in net position was $2,204,742. Other factors concerning the finances of these
funds have already 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 budget for the fiscal year ending
December 31, 2021.
11
Current property tax revenues exceeded budget by approximately $357,000 due to a higher tax base than
originally estimated by Aiken and Edgefield Counties. Additionally, revenues for licenses and building
permits exceeded budgeted revenues by approximately $657,000. This is reflective of a continued
increase in residential and commercial construction activity across the City. Charges for services reflected
a positive variance with budgeted revenues primarily due to release of COVID-19 restrictions not
projected during preparation of the budget. Miscellaneous revenues exceeded budget by approximately
$194,000 reflective of receipt of unbudgeted other income items to include sales of City assets.
Intergovernmental revenues were in line with expectations. Fines and forfeitures did not meet budgeted
expectations, however, were offset by under expenditure of remittances to the state for fees and fines.
The over-expenditures for Public Works and Parks, Recreation, and Tourism were primarily due to the
purchase of vehicles and equipment with capital lease proceeds as well as the return of large athletic
tournaments. General Government and Public Safety expenditures were under budget due to savings
resulting from vacant positions and postponement of non-critical projects.
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, 2021, amounts to $216,083,394 (net of accumulated depreciation). This investment
in capital assets includes land, land improvements, rights-of-way and easements, buildings, machinery
and equipment, furniture and fixtures, infrastructure, system improvements, PSA capital, and construction
in progress. The total increase in capital assets for the current fiscal year was approximately $13,000.
Additional information on the City’s capital assets can be found in Note 5 of this report.
City of North Augusta's Capital Assets
(net of depreciation)2021 2020 2021 2020 2021 2020
Land 10,330,391$ 10,330,391$ 824,058$ 824,058$ 11,154,449$ 11,154,449$
Land improvements 11,133,771 11,556,192 85,085 88,631 11,218,856 11,644,823
Right‐of‐way and easements 4,055,316 3,734,521 62,760 62,760 4,118,076 3,797,281
Buildings 86,707,183 89,222,891 18,803,391 19,488,632 105,510,574 108,711,523
Machinery and equipment 1,358,609 1,231,042 1,161,698 1,130,870 2,520,307 2,361,912
Furniture and fixtures 29,469 57,639 ‐ ‐ 29,469 57,639
Vehicles 3,070,044 3,390,922 1,412,801 1,045,635 4,482,845 4,436,557
Infrastructure 15,335,129 14,517,866 ‐ ‐ 15,335,129 14,517,866
System improvements ‐ ‐ 57,281,584 56,999,000 57,281,584 56,999,000
PSA capital ‐ ‐ 1,608,739 1,670,720 1,608,739 1,670,720
Construction in progress 2,823,366 718,566 ‐ ‐ 2,823,366 718,566
Total Capital Assets 134,843,278$ 134,760,030$ 81,240,116$ 81,310,306$ 216,083,394$ 216,070,336$
Governmental Activities Business‐type Activities Total
Major capital asset events during the current fiscal year included the following:
Various projects related to streets, sidewalks, and storm drainage totaling $2,807,424.
Over $530,000 of water and sewer capital assets were added by developers and contributed to
the City.
Completed design and commenced construction on Public Safety Station I and continued design
of Public Safety Headquarters totaling $1,850,381.
Purchase of various vehicles, machinery, and equipment for all departments totaling $1,698,719
with a portion financed from capital lease proceeds.
Water and sewer related infrastructure improvements totaling $95,388.
Long-term Debt. At the end of the current fiscal year, the City had total bonded debt outstanding of
$95,453,000. The City’s debt represents bonds secured solely by specified revenue sources.
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City of North Augusta's Outstanding Debt
2021 2020 2021 2020 2021 2020
Revenue bonds 68,085,000$ 68,825,000$ 17,118,000$ 18,091,831$ 85,203,000$ 86,916,831$
General obligation bonds 10,250,000 10,250,000 ‐ ‐ 10,250,000 10,250,000
Capital leases 2,145,743 1,412,082 1,617,813 1,287,722 3,763,556 2,699,804
Total Outstanding Debt 80,480,743$ 80,487,082$ 18,735,813$ 19,379,553$ 99,216,556$ 99,866,635$
Governmental Activities Buisness‐type Activities Total
The City’s total debt outstanding decreased by ($650,079) during the current fiscal year. This net
decrease was attributed to due to scheduled debt service payments during 2021.
The City maintains an “A1” 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 ratio increased to 2.80 in 2021. The City issued a refunding bond in April 2021 for
the Water and Wastewater Systems. These proceeds were used to refund two SC Drinking Water
Revolving Loans. 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 $3,763,556 in capital leases for
equipment and vehicles and other long-term liabilities related to compensated absences as well as net
pension liability totaled $23,914,075 (not presented in the table above).
Additional information regarding the City’s capitalized lease obligations and long-term debt and other
long-term liabilities can be found in Notes 6 and 7 of this report.
State statutes limit the amount of general obligation debt a governmental entity may issue, without a
referendum, to 8 percent of its total assessed valuation. The current debt limitation for the City is
$12,373,671. Additional information is available on the City’s legal debt margin in the statistical section of
this report.
Economic Factors and Next Year’s Budgets and Rates
2021 has been a year of recovery both nationwide and for North Augusta. The outbreak of COVID-19
that previously impacted City revenue streams, specifically in the areas of parks, recreation, and tourism,
has begun to rebound as mandates and restrictions were removed and people have become comfortable
returning to normal activities.
The following economic factors currently affect the City and were considered in developing the 2022 fiscal
year budget:
During the past ten years, Aiken County’s unemployment rate has fluctuated from 9.1 percent in
2011, decreasing to 2.8 percent during 2019, and then increasing to 3.4 percent for 2021.
The value of a mill has increased over 60 percent during the past ten years reflective of the growth
in the City’s tax digest. The millage rate for the 2021 budget was 73.50 with 1.50 mills dedicated
for the Capital Projects Fund. The millage rate included for preparing the 2022 budget is 73.50
with 3.30 mills dedicated for the Capital Projects Fund as part of a bond rating improvement
initiative.
Implementation of 4 percent cost of living increases as well as fund all positions on-grade
adjustments.
Increases are expected in health insurance premiums, as well as pension and other employee
benefit costs.
Income producing activities to include recreational sports, facility rentals, and tournaments to be
included with minimal budget impact.
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Rates to increase for commercial sanitation services to pass through cost increases from Aiken
County. Rates remain stable for other business type activities.
All of these factors were considered in preparing the City’s general fund budget for the 2022 fiscal year.
Amounts available for appropriation are $20.73 million, an increase of 7.59 percent, over the final fiscal
year budget of $19.26 million.
The City’s budgetary balance is expected to remain relatively stable during 2022 with opportunities to bring
non-critical projects online.
As for the City’s business type activities, we expect future results to remain stable in 2022. Good business
practices require these services to charge fees that sufficiently recover costs associated with providing the
service. The City continues to maintain a competitive rate structure.
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 the government’s 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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Primary Government
Governmental Business-type
Activities Activities Total
ASSETS
Cash and cash equivalents $ 34,600,823 $ 12,250,017 $ 46,850,840
Taxes receivable 177,001 - 177,001
Accounts receivable, net of allowances 1,009,898 1,529,283 2,539,181
Due from other governments 15,944 - 15,944
Inventories - 253,163 253,163
Restricted cash and cash equivalents 1,832,287 8,539,447 10,371,734
Capacity rights, net of accumulated amortization - 15,981 15,981
Capital assets:
Non-depreciable 17,209,073 886,818 18,095,891
Depreciable, net of accumulated depreciation 117,634,205 80,353,298 197,987,503
Total assets 172,479,231 103,828,007 276,307,238
DEFERRED OUTFLOWS OF RESOURCES
Pension 2,205,652 1,182,727 3,388,379
Total deferred outflows of resources 2,205,652 1,182,727 3,388,379
LIABILITIES
Accounts payable 1,614,206 638,555 2,252,761
Retainage payable 158,464 - 158,464
Accrued liabilities 516,584 96,880 613,464
Unearned revenues 5,957,216 385,672 6,342,888
Accrued interest payable 591,392 - 591,392
Other liabilities 70,217 - 70,217
Payable from restricted resources:
Accrued interest payable - 70,721 70,721
Customer deposits - 599,690 599,690
Long-term liabilities:
Due within one year 3,651,856 1,979,316 5,631,172
Due in more than one year 77,610,996 17,071,922 94,682,918
Other long-term liabilities due in more than one year:
Net pension liability 14,150,734 8,665,807 22,816,541
Total liabilities 104,321,665 29,508,563 133,830,228
DEFERRED INFLOWS OF RESOURCES
Pension 3,489,930 1,285,845 4,775,775
Total deferred inflows of resources 3,489,930 1,285,845 4,775,775
NET POSITION
Net investment in capital assets 54,204,071 62,504,303 116,708,374
Restricted for:
Victims assistance 123,331 - 123,331
Public safety - fire division 137,432 - 137,432
Operations - Savannah Bluff Lock and Dam - 541,792 541,792
Capital projects 14,157,523 - 14,157,523
Special projects 5,368,126 - 5,368,126
Debt service - 7,939,757 7,939,757
Unrestricted (7,117,195) 3,230,474 (3,886,721)
Total net position $ 66,873,288 $ 74,216,326 $ 141,089,614
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
STATEMENT OF NET POSITION
DECEMBER 31, 2021
The accompanying notes are an integral part of these financial statements.
15
Program RevenuesOperating CapitalCharges for Grants and Grants and Governmental Business-typeFunctions/ProgramsExpensesServicesContributions Contributions ActivitiesActivitiesTotalPrimary government: Governmental activities: General government $ 8,020,594 $ 6,868,596 $ 885,032 $ - $ (266,966) $ - $ (266,966) Public safety 8,713,621 895,682 75,846 - (7,742,093) - (7,742,093) Public works 2,952,922 93,392 - 2,199,191 (660,339) - (660,339) Parks, recreation and tourism 4,197,184 2,158,381 - - (2,038,803) - (2,038,803) Interest and fiscal charges on long-term debt 3,347,376 - - - (3,347,376) - (3,347,376) Total governmental activities 27,231,697 10,016,051 960,878 2,199,191 (14,055,577) - (14,055,577) Business-type activities: Water and wastewater10,164,461 11,159,227 - 537,983 - 1,532,749 1,532,749 Sanitation 4,479,166 4,791,306 - 668 - 312,808 312,808 Stormwater utility883,357 837,701 - 793,730 - 748,074 748,074 Savannah Bluff Lock and Dam 133,970 - - - - (133,970) (133,970) Total business-type activities 15,660,954 16,788,234 - 1,332,381 - 2,459,661 2,459,661 Total primary government $ 42,892,651 $ 26,804,285 $ 960,878 $ 3,531,572 (14,055,577) 2,459,661 (11,595,916) General revenues:Ad valorem property taxes11,382,532 - 11,382,532 Capital projects sales tax 1,770,110 - 1,770,110 Local hospitality and accommodation tax 2,385,218 - 2,385,218 Interest earned62,950 35,498 98,448 Gain on sale of capital assets- 95,281 95,281 Miscellaneous1,329,329 699,919 2,029,248 Transfers1,218,817 (1,218,817) - Total general revenues and transfers 18,148,956 (388,119) 17,760,837 Change in net position4,093,379 2,071,542 6,164,921 Net position, beginning of year62,779,909 72,144,784 134,924,693 Net position, end of year $ 66,873,288 $ 74,216,326 $ 141,089,614 Net (Expenses) Revenues and Changes in Net PositionPrimary GovernmentCITY OF NORTH AUGUSTA, SOUTH CAROLINASTATEMENT OF ACTIVITIES FOR THE YEAR ENDED DECEMBER 31, 2021The accompanying notes are an integral part of these financial statements. 16
Total
Governmental Governmental
Funds Funds
ASSETS
Cash and cash equivalents $ 7,648,463 $ 9,819,379 $ 2,228,061 $ 359,431 $ 2,457,527 $ 5,937,190 $ 6,150,772 $ 34,600,823
Taxes receivable, net of allowances 177,001 - - - - - - 177,001 Accounts receivable 343,700 - 642,000 - 24,198 - - 1,009,898
Intergovernmental receivables 11,191 - - - - - 4,753 15,944
Restricted cash and cash equivalents - 1,832,287 - - - - - 1,832,287
Total assets $ 8,180,355 $ 11,651,666 $ 2,870,061 $ 359,431 $ 2,481,725 $ 5,937,190 $ 6,155,525 $ 37,635,953
LIABILITIES Accounts payable $ 1,320,814 $ 493 $ 15,255 $ - $ 32,457 $ - $ 245,187 $ 1,614,206
Retainage payable - - - - - - 158,464 158,464
Accrued liabilities 516,584 - - - - - - 516,584
Unearned revenues 21,671 - - - - 5,935,545 - 5,957,216
Other accrued liabilities 70,217 - - - - - - 70,217
Total liabilities 1,929,286 493 15,255 - 32,457 5,935,545 403,651 8,316,687
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - property taxes 168,387 - - - - - - 168,387
Total deferred inflows of resources 168,387 - - - - - - 168,387
FUND BALANCES
Restricted: Capital projects - 11,651,173 - - - - 2,506,350 14,157,523
Victim's assistance 123,331 - - - - - - 123,331
Public safety - fire division - - - - - - 137,432 137,432
Special projects - - - 359,431 2,449,268 1,645 2,557,782 5,368,126
Committed:
Capital projects 2,834,351 - 2,746,392 - - - 544,155 6,124,898
Parks, recreation and tourism - - 12,994 - - - - 12,994
Housing and development - - 95,420 - - - - 95,420
Assigned: Capital projects - - - - - - 6,155 6,155
Unassigned 3,125,000 - - - - - - 3,125,000
Total fund balances 6,082,682 11,651,173 2,854,806 359,431 2,449,268 1,645 5,751,874 29,150,879
Total liabilities, deferred inflows
of resources, and fund balances $ 8,180,355 $ 11,651,666 $ 2,870,061 $ 359,431 $ 2,481,725 $ 5,937,190 $ 6,155,525 $ 37,635,953
ARPA
Fund
Capital Projects
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
BALANCE SHEET
GOVERNMENTAL FUNDS
DECEMBER 31, 2021
NonmajorNorth AugustaTax
Public Facilities
Corporation Fund
Capital Projects
Fund
General Sales Tax IV
FundFund
Increment
Fund
The accompanying notes are an integral part of these financial statements. 17
Fund balances, end of year $ 29,150,879
134,843,278
168,387
2,205,652
Compensated absences $ (782,109)
Installment purchase revenue bonds (78,335,000)
Capital leases (2,145,743)
Net pension liability (14,150,734)
Total long-term liabilities (95,413,586)
(591,392)
Net position of governmental activities, end of year $ 66,873,288
RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET
TO THE STATEMENT OF NET POSITION
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
Amounts reported for governmental activities in the Statement of Net Position are different because:
Interest on long-term debt is not accrued in governmental funds, but rather is recognized as an
expenditure when due.
DECEMBER 31, 2021
Capital assets used in governmental activities are not financial resources and, therefore, are not
reported in the funds.
Other long term assets are not available to pay for current period expenditures and, therefore, are
reported as unavailable revenue in the funds. These amounts are:
Long-term liabilities are not due and payable in the current period and, therefore, are not reported in the
funds.
Deferred outflows of resources related to the recording of the net pension liability are recognized as
expense over time and, therefore, are not reported in the funds.
Deferred inflows of resources related to the recording of the net pension liability are not due and
payable in the current period and, therefore, are not reported in the funds. (3,489,930)
The accompanying notes are an integral part of these financial statements.
18
Nonmajor Total
General Governmental Governmental
Fund Funds Funds
Revenues:
Ad valorem property taxes $ 8,153,505 $- $ 187,939 $3,878,726 $- $ - $ - $ 12,220,170
Sales taxes - 1,770,110 - - - - - 1,770,110
Local hospitality and accommodations taxes - - - - - - 2,385,218 2,385,218
Licenses and permits 6,868,596 - - - - - - 6,868,596
Intergovernmental 796,928 - - - 154,334 - 216,946 1,168,208
Charges for services 1,660,961 - - - 632,060 - - 2,293,021
Fines and forfeitures 854,434 - - - - - - 854,434
Interest earnings 22,350 12,608 4,498 5,221 3,254 1,645 13,374 62,950
Miscellaneous 1,005,451 - 44,759 - - - 124,785 1,174,995
Total revenues 19,362,225 1,782,718 237,196 3,883,947 789,648 1,645 2,740,323 28,797,702
Expenditures:
Current:
General government 5,423,652 - 170,601 - 254,892 - - 5,849,145
Public safety 7,937,565 - 1,221 - - - 47,392 7,986,178
Public works 1,551,787 - - - - - 1,690 1,553,477
Parks, recreation and tourism 2,962,103 - - - - - 391,150 3,353,253
Capital outlay 600,448 338,244 211,546 - - - 2,137,409 3,287,647
Debt service:
Capital lease payments 602,220 - 99,918 - - - - 702,138
Principal retirement - - - - 739,968 - - 739,968
Interest and fiscal charges - 121,975 - - 3,203,394 - - 3,325,369
Total expenditures 19,077,775 460,219 483,286 - 4,198,254 - 2,577,641 26,797,175
Excess (deficiency) of revenues over
(under) expenditures 284,450 1,322,499 (246,090) 3,883,947 (3,408,606) 1,645 162,682 2,000,527
Other financing sources (uses):
Issuance of capital lease 601,860 - 803,266 - - - - 1,405,126
Transfers in 1,387,607 - - - 4,716,238 - - 6,103,845
Transfers out - - (110,113) (3,566,238) - - (1,211,010) (4,887,361)
Total other financing sources (uses) 1,989,467 - 693,153 (3,566,238) 4,716,238 - (1,211,010) 2,621,610
Net change in fund balances 2,273,917 1,322,499 447,063 317,709 1,307,632 1,645 (1,048,328) 4,622,137
Fund balances,
beginning of year 3,808,765 10,328,674 2,407,743 41,722 1,141,636 - 6,800,202 24,528,742
Fund balances, end of year $ 6,082,682 $ 11,651,173 $ 2,854,806 $ 359,431 $ 2,449,268 $ 1,645 $ 5,751,874 $ 29,150,879
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2021
ARPA
FundFund
Sales Tax IV
Capital Projects
Capital Projects
Fund
North Augusta
Public Facilities
Corporation Fund
Increment
Fund
Tax
The accompanying notes are an integral part of these financial statements.19
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
FOR THE YEAR ENDED DECEMBER 31, 2021
Net change in fund balances - total governmental funds $ 4,622,137
Governmental funds report capital outlays as expenditures. However, in the Statement of Activities the
cost of those assets is allocated over their estimated useful lives and reported as depreciation expense.
This is the amount by which depreciation exceeded capital outlays in the current period.
Capital outlays $ 3,287,647
Depreciation expense (5,405,923)
(2,118,276)
The net effect of various miscellaneous transactions involving capital assets (i.e. sales, trade-ins, transfers,
and donations) is to increase net position.2,201,524
Revenues in the Statement of Activities that do not provide current financial resources are not reported as
revenues in the funds.(890,634)
Issuance of capital lease $ (1,405,126)
Repayment of the principal of long-term debt 1,411,465
6,339
Some expenses reported in the Statement of Activities do not require the use of current financial resources
and, therefore, are not reported as expenditures in governmental funds.
Compensated absences $ (65,194)
Accrued interest on long-term debt 8,634
Net pension liability 328,849
272,289
Change in net position of governmental activities $ 4,093,379
Amounts reported for governmental activities in the statement of activities are different because:
The issuance of long-term debt 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 position. Also, governmental funds report the effect of premiums, discounts, 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 items.
The accompanying notes are an integral part of these financial statements.
20
Revenues:
Ad valorem property taxes $ 7,796,050 $ 7,796,050 $ 8,153,505 $ 357,455
Licenses and permits 6,211,481 6,211,481 6,868,596 657,115
Fines and forfeitures 1,120,000 1,120,000 854,434 (265,566)
Charges for services 1,105,915 1,105,915 1,660,961 555,046
Intergovernmental 799,758 799,758 796,928 (2,830)
Interest earnings 51,962 51,962 22,350 (29,612)
Miscellaneous 811,260 811,260 1,005,451 194,191
Total revenues 17,896,426 17,896,426 19,362,225 1,465,799
Expenditures:
Current:
General government 5,848,778 5,848,778 5,423,652 425,126
Public safety 8,365,246 8,365,246 7,937,565 427,681
Public works 1,591,721 1,591,721 1,551,787 39,934
Parks, recreation and tourism 2,744,580 2,744,580 2,962,103 (217,523)
Capital outlay 66,450 66,450 600,448 (533,998)
Capital lease payments 646,323 646,323 602,220 44,103
Total expenditures 19,263,098 19,263,098 19,077,775 185,323
Excess (deficiency) of revenues
over (under) expenditures (1,366,672) (1,366,672) 284,450 1,651,122
Other financing sources:
Issuance of capital lease - - 601,860 601,860
Transfers in 1,366,672 1,366,672 1,387,607 20,935
Total other financing sources 1,366,672 1,366,672 1,989,467 622,795
Net change in fund balances - - 2,273,917 2,273,917
Fund balances, beginning of year 3,808,765 3,808,765 3,808,765 -
Fund balances, end of year $ 3,808,765 $ 3,808,765 $ 6,082,682 $ 2,273,917
Budget Variance with
Final BudgetOriginalFinalActual
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
GENERAL FUND
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
FOR THE YEAR ENDED DECEMBER 31, 2021
The accompanying notes are an integral part of these financial statements.
21
Wastewater Sanitation Savannah Bluff
System Services Fund Lock and Dam
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 6,531,413 $ 4,117,994 $ 1,056,818 $ 543,792 $ 12,250,017
Accounts receivable, net of allowances 1,517,500 11,783 - - 1,529,283
Inventory 253,163 - - - 253,163
Restricted cash and cash equivalents 8,539,447 - - - 8,539,447
Total current assets 16,841,523 4,129,777 1,056,818 543,792 22,571,910
NONCURRENT ASSETS
Service rights, net of accumulated
amortization 15,981 - - - 15,981
Capital assets:
Non-depreciable 610,607 91,235 184,976 - 886,818
Depreciable, net of accumulated
depreciation 71,282,615 2,392,677 6,678,006 - 80,353,298
Total noncurrent assets 71,909,203 2,483,912 6,862,982 - 81,256,097
Total assets 88,750,726 6,613,689 7,919,800 543,792 103,828,007
DEFERRED OUTFLOWS OF RESOURCES
Pensions 590,156 495,193 97,378 - 1,182,727
Total deferred outflows of resources 590,156 495,193 97,378 - 1,182,727
LIABILITIES
CURRENT LIABILITIES
Accounts payable 528,251 103,304 5,000 2,000 638,555
Accrued liabilities 48,576 37,884 10,420 - 96,880
Customer deposits 599,690 - - - 599,690
Accrued vacation 157,979 120,745 36,701 - 315,425
Accrued interest payable 59,030 10,876 815 - 70,721
Current portion of revenue bonds payable 1,085,000 - - - 1,085,000
Current portion of capital leases payable 210,672 342,547 25,672 - 578,891
Total current liabilities 2,689,198 615,356 78,608 2,000 3,385,162
NONCURRENT LIABILITIES
Revenue bonds payable, net of current portion 16,033,000 - - - 16,033,000
Capital leases payable, net of current portion 350,589 659,101 29,232 - 1,038,922
Net pension liability 4,494,313 3,523,395 648,099 - 8,665,807
Unearned revenue 385,672 - - - 385,672
Total noncurrent liabilities 21,263,574 4,182,496 677,331 - 26,123,401
Total liabilities 23,952,772 4,797,852 755,939 2,000 29,508,563
DEFERRED INFLOWS OF RESOURCES
Pensions 637,633 510,166 138,046 - 1,285,845
Total deferred inflows of resources 637,633 510,166 138,046 - 1,285,845
NET POSITION
Net investment in capital assets 54,213,961 1,482,264 6,808,078 - 62,504,303
Restricted for debt service 7,939,757 - - - 7,939,757
Restricted for operations - - - 541,792 541,792
Unrestricted 2,596,759 318,600 315,115 - 3,230,474
Total net position $ 64,750,477 $ 1,800,864 $ 7,123,193 $ 541,792 $ 74,216,326
Stormwater
Utility Fund
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
DECEMBER 31, 2021
Enterprise Fund
Nonmajor
Enterprise Funds
Total
Water and
The accompanying notes are an integral part of these financial statements.
22
Wastewater Sanitation Savannah Bluff
System Services Fund Lock and Dam
OPERATING REVENUES
Charges for services and fees $11,135,712 $4,654,908 $ 837,701 $- $16,628,321
Sale of recyclables - 136,398 - - 136,398
Miscellaneous 589,789 89,212 20,918 - 699,919
Total operating revenues 11,725,501 4,880,518 858,619 - 17,464,638
OPERATING EXPENSES
Finance 655,961 - - - 655,961
Administration 466,167 - - - 466,167
Operations and maintenance 5,446,576 2,340,874 594,041 133,970 8,515,461
Production and treatment 1,541,516 - - - 1,541,516
Material recovery facility - 1,530,433 - - 1,530,433
Depreciation and amortization 1,622,712 564,405 286,988 - 2,474,105
Total operating expenses 9,732,932 4,435,712 881,029 133,970 15,183,643
Operating income (loss) 1,992,569 444,806 (22,410) (133,970) 2,280,995
NONOPERATING REVENUES (EXPENSES)
Interest income 25,822 6,978 1,928 770 35,498
Gain (loss) on sale of property (420) 95,701 - - 95,281
Interest expense and fiscal charges (349,250) (43,454) (2,328) - (395,032)
Bond Issuance (84,612) (84,612)
Intergovernmental 23,515 - - - 23,515
Total nonoperating revenues (expenses), net (384,945) 59,225 (400) 770 (325,350)
Income (loss) before capital
contributions and transfers 1,607,624 504,031 (22,810) (133,200) 1,955,645
CAPITAL CONTRIBUTIONS 537,983 668 793,730 - 1,332,381
TRANSFERS
Transfers in 22,805 8,095 1,993 - 32,893
Transfers out (835,547) (386,506) (27,324) - (1,249,377)
Total transfers (812,742) (378,411) (25,331) - (1,216,484)
Change in net position 1,332,865 126,288 745,589 (133,200) 2,071,542
Total net position, beginning of year 63,417,612 1,674,576 6,377,604 674,992 72,144,784
Total net position, end of year $64,750,477 $1,800,864 $ 7,123,193 $541,792 $74,216,326
Utility Fund
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
FOR THE YEAR ENDED DECEMBER 31, 2021
STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN NET POSITION
PROPRIETARY FUNDS
Stormwater
Nonmajor
Enterprise Fund
Total
Enterprise Funds
Water and
The accompanying notes are an integral part of these financial statements.
23
Wastewater Sanitation Savannah Bluff
System Services Fund Lock and Dam
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers and users $ 11,671,209 $ 5,254,509 $ 858,619 $- $ 17,784,337
Payments to suppliers (5,541,360) (1,826,538) (214,036) (131,970) (7,713,904)
Payments to employees (2,550,322) (2,093,046) (460,346) - (5,103,714)
Net cash provided by
(used in) operating activities 3,579,527 1,334,925 184,237 (131,970) 4,966,719
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Transfers in 22,805 8,095 1,993 - 32,893
Transfers out (835,547) (386,506) (27,324) - (1,249,377)
Net cash used in noncapital
financing activities (812,742) (378,411) (25,331) - (1,216,484)
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Purchases of capital assets (310,123) (692,275) (75,657) - (1,078,055)
Proceeds from the sale of capital assets 8,601 95,701 - - 104,302
Proceeds from the issuance of revenue bonds 17,689,000 - - - 17,689,000
Proceeds from the issuance of capital leases 216,865 716,953 31,275 - 965,093
Principal paid on revenue bonds (18,662,831) - - - (18,662,831)
Principal paid on capital leases (215,789) (394,186) (25,027) - (635,002)
Bond issuance costs (84,612) - - - (84,612)
Capital grants received 23,515 - - - 23,515
Interest and agent fees paid (346,185) (43,454) (2,573) - (392,212)
Net cash used in capital
and related financing activities (1,681,559) (317,261) (71,982) - (2,070,802)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received 25,822 6,978 1,928 770 35,498
Net cash provided by investing activities 25,822 6,978 1,928 770 35,498
Net change in cash and cash equivalents 1,111,048 646,231 88,852 (131,200) 1,714,931
Cash and cash equivalents, beginning of year 13,959,812 3,471,763 967,966 674,992 19,074,533
Cash and cash equivalents, end of year $ 15,070,860 $ 4,117,994 $ 1,056,818 $ 543,792 $ 20,789,464
Classified as:
Cash and cash equivalents $ 6,531,413 $ 4,117,994 1,056,818 $ 543,792 $ 12,250,017
Restricted assets, cash 8,539,447 - - - 8,539,447
$ 15,070,860 $ 4,117,994 $ 1,056,818 $ 543,792 $ 20,789,464
(Continued)
Utility Fund Enterprise Funds
Water and
Stormwater
Enterprise Fund
Total
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2021
Nonmajor
24
Wastewater Sanitation Savannah Bluff
System Services Fund Lock and Dam
RECONCILIATION OF OPERATING INCOME (LOSS)
TO NET CASH PROVIDED BY (USED IN)
OPERATING ACTIVITIES
Operating income (loss)$ 1,992,569 $ 444,806 $ (22,410) $ (133,970) $ 2,280,995
Adjustments to reconcile operating income (loss) to
net cash provided by (used in) operating activities:
Depreciation and amortization 1,622,712 564,405 286,988 - 2,474,105
Changes in assets and liabilities:
(Increase) decrease in accounts receivable (30,777) 373,991 - - 343,214
Increase in inventory (36,850) - - - (36,850)
Increase in deferred outflow of resources (1,006) (781) (224) - (2,011)
Increase (decrease) in accounts payable 67,696 (17,248) (77,681) 2,000 (25,233)
Increase in accrued liabilities 19,627 244 6,301 - 26,172
Increase in customer deposits 8,299 - - - 8,299
Decrease in unearned revenue (23,515) - - - (23,515)
Decrease in net pension liability (504,538) (392,165) (112,374) - (1,009,077)
Increase in deferred inflows or resources 465,310 361,673 103,637 - 930,620
Net cash provided by
(used in) operating activities $ 3,579,527 $ 1,334,925 $ 184,237 $ (131,970) $ 4,966,719
SCHEDULE OF NON-CASH CAPITAL AND
RELATED FINANCING ACTIVITIES
Contributions of capital assets $ 537,983 $668 $ 793,730 $- $ 1,332,381
Contributions of capital assets to other funds (3,001) - - - (3,001)
$ 534,982 $668 $ 793,730 $- $ 1,329,380
Utility Fund Enterprise Funds
Water and
PROPRIETARY FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2021
Stormwater
Nonmajor
Enterprise Fund
Total
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
STATEMENT OF CASH FLOWS
25
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2021
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 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.
26
NOTES TO FINANCIAL STATEMENTS
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
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.
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.
27
NOTES TO FINANCIAL STATEMENTS
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
C. Measurement Focus, Basis of Accounting, and Financial Statement
Presentation (Continued)
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.
Capital Projects Sales Tax IV 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.
TIF Fund – This fund is used to account for the receipt of property taxes assessed and levied in
the tax increment financing district.
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.
ARPA Fund – This fund is used to account for the receipt of the Coronavirus State and Local
Fiscal Recovery Fund (SLFRF) allocation from the State of South Carolina as appropriated by
the American Rescue Plan Act of 2021 as well as to account for the disbursement of funds for
general government services and infrastructure projects as allowed under the U.S. Department
of Treasury's Final Rule.
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 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.
28
NOTES TO FINANCIAL STATEMENTS
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
C. Measurement Focus, Basis of Accounting, and Financial Statement
Presentation (Continued)
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.
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.
29
NOTES TO FINANCIAL STATEMENTS
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
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 $5,000. Management can also over-expend
appropriations, with the City Administrator’s approval, at the line item and department level, as
long as the total expenditures or expenses do not exceed appropriations of the functional
area.
Formal budgetary integration is employed as a management control device. A budget is
legally adopted annually for the General Fund on a basis consistent with U.S. GAAP.
Annual budgets are not adopted for the Special Revenue Funds or the Capital Projects
Funds. These funds budget on a project or activity basis instead of an annual operating cycle
basis. Budgets for the enterprise funds are legally adopted annually on a basis consistent with
U.S. GAAP except that depreciation is not a budgeted item.
Budgeted amounts are as originally adopted or as amended by the City Council or the City
Administrator. There were no individual amendments to the original appropriations, which
were adopted and consisted of transferring amounts within departmental accounts. No
supplemental appropriations were necessary during the year.
The City employs the use of encumbrance accounting during the year. All encumbrances
lapse at the end of the year.
Unexpended appropriations lapse at the end of the year except that a whole or part of
appropriations provided in the budget for capital or betterment outlays of any department or
activity remaining unexpended at the close of the fiscal year is held available for the following
year.
30
NOTES TO FINANCIAL STATEMENTS
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
D. Budgets and Budgetary Accounting (Continued)
Excess of Expenditures over Appropriations – For the year ended December 31, 2021,
expenditures exceeded budget in the General Fund for the following functions:
(Over) Under
Function Final Budget Actual Budget
Current - Public Works 1,591,721$ 1,551,787$ 39,934$
Capital Lease Payments - Public Works 54,085 50,705 3,380
Capital Outlay - Public Works - 45,679 (45,679)
Total Public Works 1,645,806 1,648,171 (2,365)
Current - Parks, Recreation and Tourism 2,744,580$ 2,962,103$ (217,523)$
Capital Lease Payments - Parks, Recreation and Tourism 12,100 10,463 1,637
Capital Outlay - Parks, Recreation and Tourism 3,000 11,169 (8,169)
Total Parks, Recreation and Tourism 2,759,680 2,983,735 (224,055)
The over-expenditures for Public Works were due to the purchase of vehicles and equipment with
capital lease proceeds. The over-expenditures for Parks, Recreation & Tourism were due to the
return of large athletic tournaments as well as the purchase of vehicles and equipment with capital
lease proceeds.
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 cost (first-in, first-
out) using the consumption method 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.
31
NOTES TO FINANCIAL STATEMENTS
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
E. Assets, Liabilities, Deferred Outflow/Inflows of Resources, and Net Position
and Fund Balance (Continued)
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.
32
NOTES TO FINANCIAL STATEMENTS
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
E. Assets, Liabilities, Deferred Outflow/Inflows of Resources, and Net Position
and Fund Balance (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.
The City implemented Governmental Accounting Standards Board (GASB) Statement No. 88,
Certain Disclosures Related to Debt, including Direct Borrowings and Direct Placements in a prior
year 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 7 for disclosures.
Deferred Outflows/Inflows of Resources – In addition to assets, the Statement of Net Position
reports 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 9.
In addition to liabilities, the Statement of Net Position and the Governmental Funds Balance Sheet
reports a separate section for deferred inflows of resources. This separate financial statement
element, deferred inflows of resources, represents an acquisition of net position or fund balance 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.
The item Unavailable revenue is reported under the modified accrual basis of accounting, is
reported in the Governmental Funds Balance Sheet as a deferred inflow of resources. 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 9, are also classified
as deferred inflows of resources and are reported on the Statement of Net Position.
33
NOTES TO FINANCIAL STATEMENTS
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
E. Assets, Liabilities, Deferred Outflow/Inflows of Resources, and Net Position
and Fund Balance (Continued)
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 positions represents 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 position represents net position that does not meet the
definitions of the other classifications.
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.
34
NOTES TO FINANCIAL STATEMENTS
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
E. Assets, Liabilities, Deferred Outflow/Inflows of Resources, and Net Position
and Fund Balance (Continued)
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.
35
NOTES TO FINANCIAL STATEMENTS
NOTE 2. CASH AND CASH EQUIVALENTS AND DEPOSITS
As of December 31, 2021, the City’s cash and cash equivalents consisted of the following:
Statement of Net Position:
Cash $ 46,850,840
Restricted cash 10,371,734
$ 57,222,574
Cash deposited with financial institutions $ 18,334,255
South Carolina Local Governmental Investment Pool 38,888,319
$ 57,222,574
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.
36
NOTES TO FINANCIAL STATEMENTS
NOTE 2. CASH AND CASH EQUIVALENTS AND DEPOSITS (CONTINUED)
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;
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 South Carolina 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, 2020, the underlying security ratings of the City’s
investment in the LGIP 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
37
NOTES TO FINANCIAL STATEMENTS
NOTE 2. CASH AND CASH EQUIVALENTS AND DEPOSITS (CONTINUED)
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 68% 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, 2021, the carrying amount of the City’s deposits
was $18,334,255 and the bank balance was $19,027,499. The entire bank balance was covered
by federal depository insurance or by collateral held by the City’s agent in the City’s name.
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.
38
NOTES TO FINANCIAL STATEMENTS
NOTE 3. FAIR VALUE MEASUREMENTS (CONTINUED)
The City’s recurring fair value measurements as of December 31, 2021, for its $38,888,319
investment in the LGIP are valued at the net asset value and is thus not reported in the fair value
hierarchy. 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.
NOTE 4. RECEIVABLES
Receivables as of December 31, 2021, including the applicable allowances for uncollectible
accounts, are as follows:
Fund
Receivables:
Taxes $ 350,341 $ - $- $- $- $-
Accounts 343,700 642,000 24,198 - 1,548,500 11,783
Intergovernmental 11,191 - - 4,753 - -
-
Gross recievables 705,232 642,000 24,198 4,753 1,548,500 11,783
Less allowance
for uncollectibles:
Taxes (173,340) - - - - -
Accounts - - - - (31,000) -
Total allowance (173,340) - - - (31,000) -
Net receivables $ 531,892 $ 642,000 $ 24,198 $ 4,753 $ 1,517,500 $ 11,783
Enterprise Funds
Nonmajor
General Wastewater
System
Public Facilities
Water and
Services
SanitationProjects
Fund
North Augusta
Corporation
Governmental
Funds
Governmental Funds
Capital
39
NOTES TO FINANCIAL STATEMENTS
NOTE 5. CAPITAL ASSETS
Capital asset activity for the governmental activities for the year ended December 31, 2021, is as
follows:
Beginning Ending
Balance Increases Decreases Transfers Balance
Governmental activities:
Capital assets, not being depreciated:
Land $ 10,330,391 $- $- $- $ 10,330,391
Construction in progress 718,566 2,104,800 - - 2,823,366
Right-of-way 3,734,521 320,795 - - 4,055,316
Total 14,783,478 2,425,595 - - 17,209,073
Capital assets, being depreciated:
Land improvements 22,372,005 427,398 - - 22,799,403
Buildings 106,293,056 31,619 - - 106,324,675
Machinery and equipment 3,235,048 347,223 (143,241) 4,808 3,443,838
Furniture and fixtures 1,545,725 - - - 1,545,725
Vehicles 8,591,260 414,491 (75,617) (18,479) 8,911,655
Infrastructure 29,803,825 1,840,512 - - 31,644,337
Total 171,840,919 3,061,243 (218,858) (13,671) 174,669,633
Less accumulated depreciation for:
Land improvements (10,815,813) (849,819) - - (11,665,632)
Buildings (17,070,165) (2,547,327) - - (19,617,492)
Machinery and equipment (2,004,006) (221,989) 143,241 (2,475) (2,085,229)
Furniture and fixtures (1,488,086) (28,170) - - (1,516,256)
Vehicles (5,200,338) (735,369) 75,617 18,479 (5,841,611)
Infrastructure (15,285,959) (1,023,249) - - (16,309,208)
Total (51,864,367) (5,405,923) 218,858 16,004 (57,035,428)
Total capital assets, being
depreciated, net 119,976,552 (2,344,680) - 2,333 117,634,205
Governmental activities capital
assets, net $ 134,760,030 $ 80,915 $- $ 2,333 $ 134,843,278
40
NOTES TO FINANCIAL STATEMENTS
NOTE 5. CAPITAL ASSETS (CONTINUED)
Capital asset activity for the business-type activities for the year ended December 31, 2021, is as
follows:
Beginning Ending
Balance Increases Decreases Transfers Balance
Business-type activities
Capital assets, not being depreciated:
Land $ 824,058 $- $- $- $ 824,058
Easements 62,760 - - - 62,760
Total 886,818 - - - 886,818
Capital assets, being depreciated:
Land improvements 88,650 - - - 88,650
Buildings 24,178,306 - - - 24,178,306
Machinery and equipment 3,573,675 203,475 (294,395) (4,808) 3,477,947
Vehicles 5,026,069 733,530 (819,078) - 4,940,521
System improvements 77,000,306 1,472,763 - 18,479 78,491,548
PSA Capital 4,667,405 - - - 4,667,405
Total 114,534,411 2,409,768 (1,113,473) 13,671 115,844,377
Less accumulated depreciation for:
Land improvements (19) (3,546) - - (3,565)
Buildings (4,689,674) (685,241) - - (5,374,915)
Machinery and equipment (2,442,805) (164,294) 288,375 2,475 (2,316,249)
Vehicles (3,980,434) (347,885) 819,078 (18,479) (3,527,720)
System improvements (20,001,306) (1,208,658) - - (21,209,964)
PSA Capital (2,996,685) (61,981) - - (3,058,666)
Total (34,110,923) (2,471,605) 1,107,453 (16,004) (35,491,079)
Total capital assets, being
depreciated, net 80,423,488 (61,837) (6,020) (2,333) 80,353,298
Business-type activities capital
assets, net $ 81,310,306 $ (61,837) $ (6,020) $ (2,333) $ 81,240,116
Included in current year additions are contributed systems in the amount of $537,983 for the water
and wastewater system and $793,730 for the stormwater utility.
41
NOTES TO FINANCIAL STATEMENTS
NOTE 5. CAPITAL ASSETS (CONTINUED)
Depreciation expense was charged to functions/programs of the primary government as follows:
General government $ 2,240,541
Public safety 836,309
Public works 1,419,831
Parks, recreation and tourism 909,242
Total depreciation expense - governmental activities $ 5,405,923
Governmental activities
Water and Wastewater System $ 1,620,212
Sanitation Services 564,405
Stormwater Utility 286,988
Total depreciation expense - business-type activities $ 2,471,605
Business-type activities
NOTE 6. 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, 2021:
Machinery and equipment $ 1,004,477 $ 913,370 $ 144,407 $ 45,412 $ 2,107,666
Vehicles 1,752,935 122,846 1,525,219 79,927 3,480,927
2,757,412 1,036,216 1,669,626 125,339 5,588,593
Accumulated depreciation (690,228) (165,708) (427,980) (27,285) (1,311,201)
Net book value $ 2,067,184 $ 870,508 $ 1,241,646 $ 98,054 $ 4,277,392
Water and
Activities Wastewater
Governmental Sanitation
Services
Stormwater
Utility Total
42
NOTES TO FINANCIAL STATEMENTS
NOTE 6. CAPITAL LEASE OBLIGATIONS (CONTINUED)
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, 2021:
Year ending December 31,
2022 $ 706,860 $ 213,909 $ 380,064 $ 20,885 $ 1,321,718
2023 602,478 174,912 310,779 17,077 1,105,246
2024 471,978 126,160 224,157 12,317 834,612
2025 303,577 63,248 112,379 6,175 485,379
2026 134,275 - - - 134,275
Total minimum lease payments 2,219,168 578,229 1,027,379 56,454 3,881,230
Amount representing interest (73,425) (16,968) (25,731) (1,550) (117,674)
Present value of minimum
lease future payments $ 2,145,743 $ 561,261 $ 1,001,648 $ 54,904 $ 3,763,556
Total
Governmental Water and Sanitation Stormwater
Business-type Activities
Activities Wastewater Services Utility
NOTE 7. 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, 2021, was as follows:
Beginning Ending Due within
Balance Additions Reductions Balance One Year
Governmental activities
Revenue bonds:
North Augusta Public
Facility Corporation bonds $ 68,800,000 $- $ (715,000) $ 68,085,000 $ 710,000
Direct placement -
Tax increment bonds 25,000 - (25,000) - -
Total revenue bonds 68,825,000 - (740,000) 68,085,000 710,000
General obligation bonds 10,250,000 - - 10,250,000 1,658,000
Capital leases payable 1,412,082 1,405,126 (671,465) 2,145,743 685,749
Compensated absences 716,915 534,735 (469,541) 782,109 598,107
Net pension liability 17,631,361 - (3,480,627) 14,150,734 -
Total long-term liabilities $ 98,835,358 $ 1,939,861 $ (5,361,633) $ 95,413,586 $ 3,651,856
For governmental activities, compensated absences and the net pension liability are generally
liquidated by the General Fund and special revenue funds, while capital leases are liquidated by the
General Fund and the Capital Projects Fund.
43
NOTES TO FINANCIAL STATEMENTS
NOTE 7. LONG-TERM DEBT AND OTHER LONG-TERM LIABILITIES (CONTINUED)
Revenue Bonds Payable – Revenue bonds payable (recorded as a liability for governmental
activities) at December 31, 2021 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.
The 2017B bonds mature 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.
Year ending December 31, Principal Interest Total
2022 $ 710,000 $ 3,182,407 $ 3,892,407
2023 780,000 3,161,029 3,941,029
2024 855,000 3,136,077 3,991,077
2025 980,000 3,107,443 4,087,443
2026 1,070,000 3,073,701 4,143,701
2027 - 2031 8,080,000 14,595,606 22,675,606
2032 - 2036 10,955,000 12,539,883 23,494,883
2037 - 2041 13,450,000 9,862,269 23,312,269
2042 - 2046 20,425,000 5,884,660 26,309,660
2047 - 2048 10,780,000 815,125 11,595,125
Total $ 68,085,000 $ 59,358,200 $ 127,443,200
2017B Revenue Bonds
44
NOTES TO FINANCIAL STATEMENTS
NOTE 7. LONG-TERM DEBT AND OTHER LONG-TERM LIABILITIES (CONTINUED)
Revenue Bonds Payable (Continued)
In December 2016, the City issued a Tax Increment Revenue Bond, Series 2016A, in the amount of
$25,000. The bond is secured by the special tax allocation created by the Amended Redevelopment
Plan Ordinance adopted by City Council. The proceeds were used to defray a portion of the costs
incurred by the City in carrying out the projects described in the Amended Redevelopment Plan
Ordinance. The bond was paid off on December 2, 2021.
General Obligation Bonds – General Obligation bonds payable (recorded as a liability for
governmental activities) at December 31, 2021, is comprised of the following:
In March 2020, the City issued General Obligation Bonds, Series 2020, in the amount of
$10,250,000. The bonds were issued pursuant to an ordinance adopted by City Council subject to
an affirmative voter referendum for the purposes of (1) defraying the costs incurred in connection
with all or a portion of the designing, developing, and construction of a new Department of Public
Safety headquarters and related fire apparatus; and (2) issuance costs thereof. Section 14 of Article
X of the Constitution of the State of South Carolina provides that municipalities of the State may
issue bonded indebtedness in an amount not exceeding 8% of the assessed value of all taxable
property therein, unless approved at referendum. Bonded indebtedness approved at referendum
may be incurred without regard to the City’s Debt Limit and as a result of the aforementioned
affirmative referendum, the principal amount of the bonds do not count against the debt limit. The
full faith, credit, and taxing power of the City are irrevocably pledged as security for the bonds. The
bonds are payable in semiannual installments beginning on September 1, 2020 through March
1, 2027. Interest is payable on March 1 and September 1 each year through maturity. Principal is
payable on March 1 annually through maturity. The bonds bear interest at 1.19%.
Year ending December 31, Principal Interest Total
2022 $ 1,658,000 $ 112,110 $ 1,770,110
2023 1,678,000 92,261 1,770,261
2024 1,698,000 72,174 1,770,174
2025 1,718,000 51,848 1,769,848
2026 1,739,000 31,279 1,770,279
2027 1,759,000 10,466 1,769,466
Total $ 10,250,000 $ 370,138 $ 10,620,138
2020 General Obligation Bonds
45
NOTES TO FINANCIAL STATEMENTS
NOTE 7. LONG-TERM DEBT AND OTHER LONG-TERM LIABILITIES (CONTINUED)
Long-term liability activity for the year ended December 31, 2021, was as follows:
Beginning Ending Due within
Balance Additions Reductions Balance One Year
Business-type activities
Revenue bonds payable $ 18,091,831 $ 17,689,000 $ (18,662,831) $ 17,118,000 $ 1,085,000
Capital leases payable 1,287,722 965,093 (635,002) 1,617,813 578,891
Compensated absences 294,406 221,684 (200,665) 315,425 315,425
Net pension liability 9,674,884 - (1,009,077) 8,665,807 -
Total long-term liabilities $ 29,348,843 $ 18,875,777 $ (20,507,575) $ 27,717,045 $ 1,979,316
For business-type activities, compensated absences, capital leases, and the net pension liability are
liquidated by the related Proprietary Fund.
Revenue Bonds Payable – Revenue bonds payable (recorded as a liability in the Water and
Wastewater System Fund) at December 31, 2021, are comprised of the following:
The Waterworks and Sewer System Refunding Revenue Bond, “the Series 2021 Bond” was issued
in April 2021. The proceeds of this bond was used to refund the Series 2014 A and 2015 A SC
Drinking Water Revolving Loans and to pay certain costs and expenses relating to the issuance of
the Series 2021 Bond. Interest of 1.8% is payable semiannually on May 1 and November 1 of each
year with a single principal payment on November 1, 2021. The remaining principal is paid annually
beginning May 1, 2022 and ranging from $600,000 to $1,346,000. The current refunding resulted in
cash flow savings of $235,185 and an economic gain of $167,037.
Year ending December 31, Principal Interest Total
2022 $ 1,085,000 $ 298,359 $ 1,383,359
2023 1,104,000 278,658 1,382,658
2024 1,125,000 258,597 1,383,597
2025 1,144,000 238,176 1,382,176
2026 1,165,000 217,395 1,382,395
2027 - 2031 6,153,000 761,715 6,914,715
2032 - 2036 5,342,000 205,434 5,547,434
Total $ 17,118,000 $ 2,258,334 $ 19,376,334
2021 Refunding
46
NOTES TO FINANCIAL STATEMENTS
NOTE 7. LONG-TERM DEBT AND OTHER LONG-TERM LIABILITIES (CONTINUED)
Revenue Bonds Payable (Continued)
The revenue bond ordinances require, among other things, that certain funds be maintained as
follows:
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 ensure the timely payment of the principal and interest on the
bonds, and to provide for the redemption of bonds prior to their stated maturity.
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 2021 totaled $2,137,268. Total net
charges for services for the year were $11,135,712
47
NOTES TO FINANCIAL STATEMENTS
NOTE 8. 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 9. DEFINED BENEFIT PENSION PLAN
Overview:
The South Carolina Public Employee Benefit Authority (PEBA), created July 1, 2012, is the state
agency responsible for the administration and management of the various Retirement Systems and
retirement programs of the state of South Carolina, including the State Optional Retirement
Program and the S.C. Deferred Compensation Program, as well as the state’s employee insurance
programs. As such, PEBA is responsible for administering the South Carolina Retirement Systems’
five defined benefit pension plans. PEBA has an 11-member Board of Directors, appointed by the
Governor and General Assembly leadership, which serves as custodian, co-trustee and co-fiduciary
of the Systems and the assets of the retirement trust funds. The Retirement System Investment
Commission (Commission as the governing body, RSIC as the agency), created by the General
Assembly in 2005, has exclusive authority to invest and manage the retirement trust funds’ assets.
The Commission, an eight-member board, serves as co-trustee and co-fiduciary for the assets of
the retirement trust funds. By law, the State Fiscal Accountability Authority (SFAA), which consists
of five elected officials, also reviews certain PEBA Board decisions regarding the actuary of the
Systems.
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 position of the
Systems and additions to/deductions from the Systems fiduciary net position have been determined
on the accrual basis of accounting as they are reported by the Systems in accordance with
generally accepted accounting principles (GAAP). For this purpose, revenues are recognized when
earned and expenses are recognized when incurred. Benefit and refund expenses are recognized
when due and payable in accordance with the terms of the plan. Investments are reported at fair
value.
48
NOTES TO FINANCIAL STATEMENTS
NOTE 9. DEFINED BENEFIT PENSION PLAN (CONTINUED)
Overview (Continued):
PEBA issues an Annual Comprehensive Financial Report (ACFR) containing financial statements
and required supplementary information for the Systems’ Pension Trust Funds. The ACFR is
publicly available through 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 ACFR of the state.
Plan Description:
The City contributes to the South Carolina Retirement System (SCRS), a cost–sharing multiple-
employer defined benefit pension plan that was established 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.
In addition to the SCRS pension plan, the City has also contributed to the South Carolina Police
Officers Retirement System (PORS), a cost–sharing multiple-employer defined benefit pension plan
that was established 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 described as follows.
SCRS - Generally, all employees of covered employers are required to participate in and contribute
to the SCRS as a condition of employment. This plan covers general employees, 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.
49
NOTES TO FINANCIAL STATEMENTS
NOTE 9. DEFINED BENEFIT PENSION PLAN (CONTINUED)
Membership (Continued):
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.
Benefits:
Benefit terms are prescribed in Title 9 of the South Carolina Code of Laws. PEBA does not have the
authority to establish or amend benefit terms without a legislative change in the code of laws. Key
elements of the benefit calculation include the benefit multiplier, years of service, and average final
compensation. A brief summary of the 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 or retired
members of employees 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.
50
NOTES TO FINANCIAL STATEMENTS
NOTE 9. DEFINED BENEFIT PENSION PLAN (CONTINUED)
Benefits (Continued):
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:
Actuarial valuations are performed annually by an external consulting actuary to ensure applicable
contribution rates satisfy the funding parameters specified in Title 9 of the South Carolina Code of
Laws. Under these provisions, SCRS and PORS contribution requirements must be sufficient to
maintain an amortization period for the financing of the unfunded actuarial accrued liability (UAAL)
over a period that does not exceed the number of years scheduled in state statute. Legislation in
2017 increased, but also established a ceiling for SCRS and PORS employee contribution rates.
Effective July 1, 2017, employee rates were increased to a capped rate of 9.00 percent for SCRS
and 9.75 percent for PORS. The legislation also increased employer contribution rates beginning
July 1, 2017, for both SCRS and PORS by two percentage points and further scheduled employer
contribution rates to increase by a minimum of one percentage point each year in accordance with
state statute. However, the General Assembly postponed the one percent increase in the SCRS
and PORS employer contribution rates that was scheduled to go into effect beginning July 1, 2020.
If the scheduled contributions are not sufficient to meet the funding periods set in state statute, the
Board shall increase the employer contribution rates as necessary to meet the funding periods set
for the applicable year. The maximum funding period of SCRS and PORS is scheduled to be
reduced over a ten-year schedule from 30 years beginning fiscal year 2018 to 20 years by fiscal
year 2028.
51
NOTES TO FINANCIAL STATEMENTS
NOTE 9. DEFINED BENEFIT PENSION PLAN (CONTINUED)
Contributions (Continued):
Additionally, the Board is prohibited from decreasing the SCRS and PORS contribution rates until
the funded ratio is at least 85 percent. 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 percent, then the Board,
effective on the following July 1, 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 percent. If contribution rates
are decreased pursuant to this provision, and the most recent annual actuarial valuation of the
system shows a funded ratio of less than 85 percent, then effective on the following July 1, 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 percent. For the year ended December 31, 2021, the City contributed $1,356,172 and
$724,678, to the SCRS and PORS plans, respectively.
Required employee contribution rates for the year ended December 31, 2021, are as follows:
South Carolina Retirement System
9.00% of earnable compensation
South Carolina Police Officers Retirement System
9.75% of earnable compensation
Required employer contribution rates for the year ended December 31, 2021, are as follows:
South Carolina Retirement System
15.41% of earnable compensation from January 1st through June 30th
16.41% of earnable compensation from July 1st through December 31st
Employer incidental death benefit: 0.15% of earnable compensation
South Carolina Police Officers Retirement System
17.84% of earnable compensation from January 1st through June 30th
18.84% of earnable compensation from July 1st through December 31st
Employer incidental death benefit: 0.20% of earnable compensation
Net Pension Liability:
The June 30, 2021, (the measurement date) total pension liability, net pension liability, and
sensitivity information were determined by the consulting actuary, Gabriel, Roeder, Smith and
Company (GRS), and are based on the July 1, 2021 actuarial valuation. The total pension liability
was rolled-forward from the valuation date to the plan’s fiscal year ended June 30, 2021, using
generally accepted actuarial principles. Information included in the following schedules is based on
the certification provided by GRS.
52
NOTES TO FINANCIAL STATEMENTS
NOTE 9. DEFINED BENEFIT PENSION PLAN (CONTINUED)
Net Pension Liability (Continued):
The net pension liability is calculated separately for each system and represents that particular
system’s total pension liability determined in accordance with GASB No. 67, less that system’s
fiduciary net position. As of December 31, 2021, (measurement date of June 30, 2021), the net
pension liability amounts for the City’s proportionate share of the collective net pension liabilities
associated with the SCRS and PORS plans are as follows:
Plan Fiduciary
Total Plan Employer's Net Position as City's Proportionate
Pension Fiduciary Net Net Pension a Percentage of the Share of the Collective
System Liability Position Liability Total Pension Liability Net Pension Liability
SCRS 41,852,036$ 25,423,524$ 16,428,512$ 60.7% 0.075913%
PORS 21,562,091$ 15,174,062$ 6,388,029$ 70.4% 0.248280%
Actuarial Assumptions and Methods:
Actuarial valuations of the ongoing plan involve estimates of the reported amounts and assumptions
about the probability of occurrence of events far into the future. Examples include assumptions
about future employment, mortality and future salary increases. Amounts determined regarding the
net pension liability are subject to continual revision as actual results are compared with past
expectations and new estimates are made about the future. South Carolina state statute requires
that an actuarial experience study be completed at least once in each five-year period. An
experience report on the Systems was most recently issued for the period ending June 30, 2019.
The June 30, 2021, total pension liability (TPL), net pension liability (NPL), and sensitivity
information shown in this report were determined by our consulting actuary, Gabriel Roeder Smith &
Company (GRS) and are based on an actuarial valuation performed as of July 1, 2020. The total
pension liability was rolled-forward from the valuation date to the plans’ fiscal year end, June 30,
2021, using generally accepted actuarial principles. There was no legislation enacted during the
2021 legislative session that had a material change in the benefit provisions for any of the systems.
In fiscal year 2021, the Board adopted updated demographic assumptions. Also, the General
Assembly permitted the investment return assumption at July 1, 2021, to decrease from 7.25% to
7.00%, as provided by Section 9-16-335 in South Carolina State Code.
53
NOTES TO FINANCIAL STATEMENTS
NOTE 9. DEFINED BENEFIT PENSION PLAN (CONTINUED)
Actuarial Assumptions and Methods (Continued):
The following table provides a summary of the actuarial assumptions and methods used in
the July 1, 2020, valuations for SCRS and PORS.
SCRS PORS
Actuarial cost method Entry Age Normal Entry Age Normal
Investment rate of return 7.00%7.00%
Projected salary increases 3.5% to 11%3.5% to 10.5%
(varies by service) (varies by service)
Benefit adjustments lesser of 1% or $500 lesser of 1% or $500
The post-retiree mortality assumption is dependent upon the member’s job category and gender.
The base mortality assumptions, the 2020 Public Retirees of South Carolina Mortality table (2020
PRSC), was developed using the Systems’ mortality experience. These base rates are adjusted for
future improvement in mortality using 80% of Scale UMP projected from the year 2020.
Males Females
General Employees and Members
of the General Assembly 2020 PRSC Males multiplied by 97% 2020 PRSC Females multiplied by 107%
Public Safety and Firefighters 2020 PRSC Males multiplied by 127% 2020 PRSC Females multiplied by 107%
Former Job Class
Long-term Expected Rate of Return:
The long-term expected rate of return on pension plan investments is based upon 20-year capital
market assumptions. The 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 2021 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 on the following page.
54
NOTES TO FINANCIAL STATEMENTS
NOTE 9. DEFINED BENEFIT PENSION PLAN (CONTINUED)
Long-term Expected Rate of Return (Continued)
For actuarial purposes, the 7 percent assumed annual investment rate of return used in the
calculation of the TPL includes a 4.75 percent real rate of return and a 2.25 percent inflation
component, which is summarized below.
Expected Long-term
Arithmetic Real Expected Portfolio
Allocation / Exposure Policy Target Rate of Return Real Rate of Return
Public Equity 46.0%6.87%3.16%
Bonds 26.0%0.27%0.07%
Private Equity 9.0%9.68%0.87%
Private Debt 7.0%5.47%0.39%
Real Assets 12.0%
Real Estate 9.0%6.01%0.54%
Infrastructure 3.00%5.08%0.15%
Total expected real return 100%
Inflation for actuarial purposes 5.18%
2.25%
7.43%
Discount Rate:
The discount rate used to measure the TPL was 7 percent. The projection of cash flows used to
determine the discount rate assumed that contributions from participating employers in SCRS and
PORS will be made based on the actuarially determined rates based on provisions in the South
Carolina Code of Laws. Based on those assumptions, the System’s fiduciary net position was
projected to be available to make all the projected future benefit payments of current plan members.
Therefore, the long-term expected rate of return on pension plan investments was applied to all
periods of projected benefit payments to determine the TPL.
55
NOTES TO FINANCIAL STATEMENTS
NOTE 9. DEFINED BENEFIT PENSION PLAN (CONTINUED)
Sensitivity Analysis:
The following table presents the collective NPL of the participating employers calculated using the
discount rate of 7 percent, as well as what the employers’ NPL would be if it were calculated using a
discount rate that is 1 percent lower (6 percent) or 1 percent higher (8 percent) than the current rate.
Sensitivity of the Net Position Liability to Changes in the Discount Rate
Current
Discount Rate
(7%)
SCRS $ 21,519,303 $ 16,428,512 $ 12,197,009
PORS $ 9,268,212 $ 6,388,029 $ 4,028,717
1% Increase
(8%)
1% Decrease
(6%)
Deferred Outflows and Inflows of Resources Related to Pensions:
At December 31, 2021, the City reported deferred outflows of resources and deferred inflows of
resources related to the SCRS and PORS pension plans, respectively, from the following sources:
SCRS
Differences between expected and actual
experience $ 279,841 $ 22,172
Changes of assumptions 899,243 -
Net difference between projected and actual
earnings on pension plan investments - 2,386,458
Changes in proportionate share and differences
between employer contributions and proportionate
share of total plan employer contributions 469,852 442,010
Employer contributions subsequent to the
measurement date 679,229 -
Total $ 2,328,165 $ 2,850,640
Deferred Deferred
Outflows of Inflows of
Resources Resources
56
NOTES TO FINANCIAL STATEMENTS
NOTE 9. DEFINED BENEFIT PENSION PLAN (CONTINUED)
Deferred Outflows and Inflows of Resources Related to Pensions (Continued):
PORS
Differences between expected and actual
experience $ 217,315 $ 19,895
Changes of assumptions 455,624 -
Net difference between projected and actual
earnings on pension plan investments - 1,432,168
Changes in proportionate share and differences
between employer contributions and proportionate
share of total plan employer contributions 1,080 473,072
Employer contributions subsequent to the
measurement date 386,195 -
Total $ 1,060,214 $ 1,925,135
Deferred Deferred
Outflows of Inflows of
Resources Resources
City contributions subsequent to the measurement date of $679,229 and $386,195 for the SCRS
plan and the PORS plan, respectively, are deferred outflows of resources and will be recognized as
a reduction of the net pension liability in the year ended December 31, 2022. Other amounts
reported as deferred outflows of resources and deferred inflows of resources related to pensions will
be recognized in pension expense as follows:
Year ended December 31: SCRS PORS
2022 $ (142,402) $ (288,749)
2023 (103,395) (233,474)
2024 (62,928) (212,586)
2025 (892,979) (516,307)
57
NOTES TO FINANCIAL STATEMENTS
NOTE 9. DEFINED BENEFIT PENSION PLAN (CONTINUED)
Pension Expense:
For the year ended December 31, 2021 (measurement period ended June 30, 2021), the City
recognized its proportionate share of collective pension expense of $1,199,631 and recognition of
deferred amounts from changes in proportionate share and differences between employer
contributions and the proportionate share of total plan employer contributions of ($25,056) for a total
of $1,174,575 for the SCRS plan. Additionally, for the year ended December 31, 2021
(measurement period ended June 30, 2021), the City recognized its proportionate share of
collective pension expense of $698,852 and recognition of deferred amounts from changes in
proportionate share and differences between employer contributions and the proportionate share of
total plan employer contributions of ($202,275) for a total of $496,577 for the PORS plan. Total
pension expense for both the SCRS plan and the PORS plan amounted to $1,671,152 for the year
ended December 31, 2021 (measurement period ended June 30, 2021).
NOTE 10. INTERFUND TRANSFERS
The following interfund transfers are reflected in the fund financial statements at December 31,
2021:
Governmental Funds
General Fund $ 1,387,607 $-
Capital Projects - 110,113
Tax Increment Financing - 3,566,238
North Augusta Public Facilities Corporation 4,716,238 -
Nonmajor - 1,211,010
Total Governmental Funds 6,103,845 4,887,361
Enterprise Funds
Water and Wastewater System 22,805 835,547
Sanitation Services 8,095 386,506
Stormwater Utility 1,993 27,324
Total Enterprise Funds 32,893 1,249,377
Total Transfers $ 6,136,738 $ 6,136,738
Transfers In Transfers Out
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.
58
NOTES TO FINANCIAL STATEMENTS
NOTE 11. RISK MANAGEMENT
The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of
assets; errors and omissions; injuries to employees; and natural disasters. The City has joined
together with other municipalities in the state to form the South Carolina Municipal Insurance and
Risk Financing Fund (SCMIRF), which is a public entity risk pool currently operating as common
risk management and insurance programs. The City pays a bi-annual premium to SCMIRF for its
general insurance. The SCMIRF is self-sustaining through member premiums and will reinsure
through commercial companies.
The City also has joined together with other municipalities in the state to form the South Carolina
Municipal Insurance Trust (SCMIT), a public entity risk pool operating as a common risk
management and insurance program for worker’s compensation. The City pays a quarterly
premium to SCMIT. The SCMIT is self-sustaining through member premiums and uses
reinsurance agreements to reduce its exposure to large workers’ compensation losses.
There were no significant reductions in insurance coverage during the year. Settlements have not
exceeded insurance coverage for each of the past three years.
The City pays monthly premiums to the Public Employee Benefit Authority for its health and dental
insurance benefits.
NOTE 12. COMMITMENTS
Significant commitments at December 31, 2021, are composed of the following:
Public Safety Station I $ 3,800,000 $ 1,836,425 $ 1,963,575
Project
Authorization
Expended through
December 31, 2021 Commitment
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 County, 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.
59
NOTES TO FINANCIAL STATEMENTS
NOTE 13. CONTINGENCIES
The City is a defendant in various lawsuits. In the opinion of the City’s management and the City
Attorney, the ultimate effect of these matters will not have a material adverse effect on the financial
condition of the City.
NOTE 14. TAX ABATEMENTS
As of December 31, 2021, 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, 2021, the City’s taxes were reduced as a part of the FILOT
agreement previously disclosed in the amount of $6,341.
60
REQUIRED SUPPLEMENTARY INFORMATION
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY
FOR THE YEAR ENDED DECEMBER 31,
SOUTH CAROLINA RETIREMENT SYSTEM
Plan Year
Ended
June 30
City's
proportion of
the net
pension liability
City's
proportionate
share of the net
pension liability
City's covered
payroll
City's share of the
net pension liability
as a percentage of
its covered payroll
Plan fiduciary net
position as a
percentage of the
total pension
liability
2021 0.08%16,428,512$ 8,573,011$ 191.6%60.75%
2020 0.07%18,721,872 8,173,809 229.0%50.71%
2019 0.08%17,638,284 8,150,277 216.4%54.40%
2018 0.08%17,272,206 7,983,849 216.3%54.10%
2017 0.08%17,231,285 7,723,042 223.1%53.30%
2016 0.08%16,062,609 7,282,122 220.6%52.90%
2015 0.08%14,301,301 7,070,316 202.3%57.00%
POLICE OFFICERS RETIREMENT SYSTEM
Plan Year
Ended
June 30
City's
proportion of
the net
pension liability
City's
proportionate
share of the net
pension liability
City's covered
payroll
City's 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
2021 0.25% 6,388,029$ 3,742,475$ 170.7% 70.37%
2020 0.26% 8,584,373 3,910,474 219.5% 58.79%
2019 0.27% 7,744,895 3,919,711 197.6% 62.70%
2018 0.28% 7,977,432 3,896,877 204.7% 61.70%
2017 0.28% 7,696,742 3,783,451 203.4% 60.90%
2016 0.28% 7,039,605 3,538,195 199.0% 60.40%
2015 0.27% 5,956,041 3,385,504 175.9% 64.60%
Note: Each year the City will add an additional year of data until a total of ten years is presented.
61
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CONTRIBUTIONS
FOR THE YEAR ENDED DECEMBER 31,
SOUTH CAROLINA RETIREMENT SYSTEM
Year Ended
December
31
Statutorily
required
contribution
Contributions
relative to
statutorily
required
contribution
Contribution
deficiency
(excess)
City's covered
payroll
Contributions as a
percentage of
covered payroll
2021 $ 1,356,172 $ 1,356,172 $ - $ 8,452,161 16.05%
2020 1,292,391 1,292,391 - 8,305,853 15.56%
2019 1,235,059 1,235,059 - 8,201,611 15.06%
2018 1,128,580 1,128,580 - 8,024,995 14.06%
2017 975,309 975,309 - 7,745,243 12.59%
2016 835,163 835,163 - 7,371,464 11.33%
2015 818,535 818,535 - 7,452,451 10.98%
2014 752,690 752,690 - 7,001,673 10.75%
2013 700,473 700,473 - 6,608,240 10.60%
2012 656,333 656,333 - 6,518,085 10.07%
POLICE OFFICERS RETIREMENT SYSTEM
Year Ended
December
31
Statutorily
required
contribution
Contributions
relative to
statutorily
required
contribution
Contribution
deficiency
(excess)
City's covered
payroll
Contributions as a
percentage of
covered payroll
2021 $ 724,678 $ 724,678 $ - $ 3,862,966 18.76%
2020 694,889 694,889 - 3,809,697 18.24%
2019 702,156 702,156 - 3,957,543 17.74%
2018 655,814 655,814 - 3,918,206 16.74%
2017 575,300 575,300 - 3,769,186 15.26%
2016 504,306 504,306 - 3,599,658 14.01%
2015 492,613 492,613 - 3,627,182 13.58%
2014 432,698 432,698 - 3,297,144 13.12%
2013 394,235 394,235 - 3,136,039 12.57%
2012 374,823 374,823 - 3,116,056 12.03%
62
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CONTRIBUTIONS
FOR THE YEAR ENDED DECEMBER 31,
Note: The actuarial assumptions used to determine the required contributions to the plans as noted on the previous
page are as follows:
System SCRS PORS
Calculation date July 1, 2019 July 1, 2019
Actuarial cost
method Entry Age Normal Entry Age Normal
Asset
valuation
method 5-year Smoothed 5-year Smoothed
Amortization
method Level % of pay Level % of pay
Amortization
period 28 years maximum,28 years maximum,
closed period closed period
Investment
return 7.25%7.25%
Inflation 2.25%2.25%
Salary
increases 3.00% plus step-rate increases for members with less than 3.50% plus step-rate increases for members
21 years of service with less than 15 years of service
Mortality 2016 Public Retirees of South Carolina Mortality 2016 Public Retirees of South Carolina Mortality
Tables for Males and Females, both projected Tables for Males and Females, both projected
at Scale AA from the year 2016. Male rates are at Scale AA from the year 2016. Male rates are
multiplied by 100% for non-educators and 92%multiplied by 125% and females rates are
for educators. Female rates multiplied by 111%multiplied by 111%.
for non-educators and 98% for educators.
63
THIS PAGE INTENTIONALLY LEFT BLANK
OTHER SUPPLEMENTARY INFORMATION
Revenues:
Taxes
Current $ 7,721,050 $ 7,721,050 $ 8,038,426 $ 317,376
Delinquent 10,000 10,000 9,145 (855)
Penalties 65,000 65,000 105,934 40,934
Total taxes 7,796,050 7,796,050 8,153,505 357,455
Licenses and permits
Business licenses 5,790,481 5,790,481 6,216,232 425,751
Building permits 350,000 350,000 535,235 185,235
Electrical permits 22,000 22,000 41,214 19,214
Mechanical permits 20,000 20,000 35,948 15,948
Plumbing permits 14,000 14,000 23,364 9,364
Grading permits 15,000 15,000 16,603 1,603
Total licenses and permits 6,211,481 6,211,481 6,868,596 657,115
Intergovernmental
State of South Carolina:
State shared revenue 551,457 551,457 572,628 21,171
Accommodations tax 31,000 31,000 1,718 (29,282)
Merchants' inventory tax 54,700 54,700 54,790 90
Local option sales tax 20,000 20,000 51,654 31,654
Law enforcement net grant 10,000 10,000 1,426 (8,574)
Department of Justice grant 5,000 5,000 - (5,000)
Highway safety grant 69,601 69,601 61,716 (7,885)
Aiken County FILOT 58,000 58,000 52,996 (5,004)
Total intergovernmental 799,758 799,758 796,928 (2,830)
Charges for services
Fire protection fees 42,480 42,480 41,248 (1,232)
Customer street light fees 88,020 88,020 93,392 5,372
Municipal Center rentals 40,400 40,400 74,470 34,070
Recreation fees:
Special programs 32,100 32,100 25,633 (6,467)
Volleyball 5,700 5,700 8,985 3,285
Soccer 58,470 58,470 66,735 8,265
Miscellaneous 125,000 125,000 33,450 (91,550)
Basketball 42,830 42,830 54,579 11,749
Softball 25,480 25,480 26,301 821
Football 35,455 35,455 49,497 14,042
Baseball 53,370 53,370 68,837 15,467
Concession stand 150,000 150,000 203,087 53,087
Community Center fees 34,100 34,100 77,916 43,816
Activities Center fees 139,010 139,010 165,393 26,383
Recreation facilities rentals 54,000 54,000 58,772 4,772
Activities Center tournaments 179,500 179,500 612,666 433,166
Total charges for services 1,105,915 1,105,915 1,660,961 555,046
Fines and forfeitures
Public safety fines 1,100,000 1,100,000 847,406 (252,594)
Drug related fines 15,000 15,000 7,028 (7,972)
Court costs 5,000 5,000 - (5,000)
Total fines and forfeitures 1,120,000 1,120,000 854,434 (265,566)
Miscellaneous
Other 549,205 549,205 753,396 204,191
Communication tower rental 262,055 262,055 252,055 (10,000)
Interest earnings 51,962 51,962 22,350 (29,612)
Total miscellaneous 863,222 863,222 1,027,801 164,579
Total revenues $ 17,896,426 $ 17,896,426 $ 19,362,225 $ 1,465,799
(Continued)
Original Final Actual Final Budget
Budget Variance with
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
GENERAL FUND
SCHEDULE OF REVENUES AND EXPENDITURES
COMPARED WITH BUDGET
FOR THE YEAR ENDED DECEMBER 31, 2021
64
Expenditures:
General Government
City Council:
Personal services:
Salaries and wages $ 107,086 $ 107,086 $ 106,783 $ 303
FICA 8,192 8,192 7,600 592
Employee retirement 13,916 13,916 13,989 (73)
Employee insurance 32,920 32,920 29,435 3,485
Workers' compensation 3,300 3,300 2,345 955
Operating expenditures:
General supplies/postage 9,900 9,900 5,400 4,500
Dues/training/travel 9,985 9,985 3,031 6,954
Advertising 1,400 1,400 1,702 (302)
Professional services 6,600 6,600 6,266 334
Special department supplies 2,850 2,850 2,435 415
Insurance 1,076 1,076 1,103 (27)
Contingencies 2,000 2,000 500 1,500
Total city council 199,225 199,225 180,589 18,636
City Administration
Personal services:
Salaries and wages 305,693 305,693 306,397 (704)
FICA 23,386 23,386 22,090 1,296
Employee retirement 49,094 49,094 49,019 75
Employee insurance 16,460 16,460 13,843 2,617
Workers' compensation 9,865 9,865 7,009 2,856
Unemployment insurance
Operating expenditures:
General supplies/postage 1,850 1,850 1,214 636
Dues/training/travel 15,000 15,000 15,432 (432)
Contracts/repairs 4,800 4,800 2,912 1,888
Professional services 30,000 30,000 18,086 11,914
Insurance 4,773 4,773 25,056 (20,283)
Contingencies 50,000 50,000 2,000 48,000
Capital outlay:
Office machines 9,700 9,700 9,353 347
Total city administration 520,621 520,621 472,411 48,210
Justice and Law
Personal services:
Salaries and wages 127,460 127,460 133,655 (6,195)
FICA 9,751 9,751 9,804 (53)
Employee retirement 18,102 18,102 17,672 430
Employee insurance 8,230 8,230 7,527 703
Workers' compensation 3,990 3,990 2,835 1,155
Operating expenditures:
General supplies/postage 3,400 3,400 704 2,696
State fees/fines 570,615 570,615 454,714 115,901
Dues/training/travel 5,550 5,550 2,061 3,489
Contracts/repairs 15,000 15,000 10,698 4,302
Jury services 3,000 3,000 - 3,000
Professional services 25,000 25,000 24,614 386
Juvenile detention 3,000 3,000 2,200 800
Insurance 32,111 32,111 32,921 (810)
Total justice and law 825,209 825,209 699,405 125,804
(Continued)
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
GENERAL FUND
SCHEDULE OF REVENUES AND EXPENDITURES
COMPARED WITH BUDGET
FOR THE YEAR ENDED DECEMBER 31, 2021
Budget Variance with
Actual Final BudgetOriginalFinal
65
Expenditures (Continued):
General Government (Continued)
Community Promotion
Operating expenditures:
Contributions $ 30,550 $ 30,550 $ 17,162 $ 13,388
Dues/training/travel 5,931 5,931 5,931 -
Special department supplies 18,300 18,300 17,628 672
Insurance 3,275 3,275 3,358 (83)
Total community promotion 58,056 58,056 44,079 13,977
Finance
Personal services:
Salaries and wages 292,380 292,380 296,165 (3,785)
FICA 22,367 22,367 21,575 792
Employee retirement 46,956 46,956 46,724 232
Employee insurance 32,920 32,920 30,107 2,813
Workers' compensation 8,817 8,817 6,264 2,553
Operating expenditures:
General supplies/postage 10,000 10,000 11,815 (1,815)
Dues/training/travel 2,525 2,525 1,935 590
Data processing 23,200 23,200 25,944 (2,744)
Contracts/repairs 18,190 18,190 19,850 (1,660)
Advertising 850 850 - 850
Professional services 18,428 18,428 18,428 -
Insurance 3,412 3,412 3,498 (86)
Total finance 480,045 480,045 482,305 (2,260)
City Buildings
Operating expenditures:
General supplies/postage 19,000 19,000 21,246 (2,246)
Auto operating 2,500 2,500 732 1,768
Utility services 187,000 187,000 310,160 (123,160)
Contracts/repairs 90,500 90,500 91,255 (755)
Professional services 6,700 6,700 6,108 592
Special department supplies - - 289 (289)
Insurance 15,361 15,361 38,065 (22,704)
Total city buildings 321,061 321,061 467,855 (146,794)
Building Standards
Personal services:
Salaries and wages 277,784 277,784 259,227 18,557
FICA 21,250 21,250 18,717 2,533
Employee retirement 44,612 44,612 39,765 4,847
Employee insurance 37,035 37,035 33,870 3,165
Workers' compensation 9,026 9,026 6,413 2,613
Operating expenditures:
General supplies/postage 3,000 3,000 2,779 221
Dues/training/travel 3,925 3,925 3,321 604
Auto operating 6,150 6,150 5,067 1,083
Data processing 18,100 18,100 20,455 (2,355)
Contracts/repairs 3,550 3,550 3,924 (374)
Uniforms/clothing 1,550 1,550 1,134 416
Professional services - - 8,107 (8,107)
Special department supplies 2,600 2,600 6,008 (3,408)
Insurance 2,405 2,405 2,466 (61)
Capital lease payments 14,499 14,499 13,730 769
Capital outlay:
Automotive equipment
Machines/equipment 6,500 6,500 - 6,500
Vehicles - - 24,572 (24,572)
Total building standards 451,986 451,986 449,555 2,431
(Continued)
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
GENERAL FUND
SCHEDULE OF REVENUES AND EXPENDITURES
COMPARED WITH BUDGET
FOR THE YEAR ENDED DECEMBER 31, 2021
Budget Variance with
Original Final Actual Final Budget
66
Expenditures (Continued):
General Government (Continued)
Human Resources
Personal services:
Salaries and wages $ 134,834 $ 134,834 $ 135,102 $ (268)
FICA 10,315 10,315 9,919 396
Employee retirement 21,654 21,654 21,554 100
Employee insurance 16,460 16,460 15,053 1,407
Workers' compensation 4,084 4,084 2,902 1,182
Operating expenditures:
General supplies/postage 4,930 4,930 3,933 997
Dues/training/travel 5,000 5,000 5,861 (861)
Contracts/repairs 650 650 1,062 (412)
Advertising 5,000 5,000 6,090 (1,090)
Professional services 55,988 55,988 41,936 14,052
Special department supplies 12,810 12,810 10,893 1,917
Insurance 3,759 3,759 4,731 (972)
Total human resources 275,484 275,484 259,036 16,448
Planning and Development
Personal services:
Salaries and wages 272,472 272,472 257,630 14,842
FICA 20,844 20,844 18,894 1,950
Employee retirement 43,759 43,759 32,453 11,306
Employee insurance 32,920 32,920 31,115 1,805
Workers' compensation 7,616 7,616 5,411 2,205
Operating expenditures:
General supplies/postage 3,000 3,000 3,238 (238)
Dues/training/travel 8,000 8,000 2,453 5,547
Auto operating 5,500 5,500 2,473 3,027
Data processing 8,575 8,575 8,815 (240)
Contracts/repairs 2,500 2,500 2,554 (54)
Advertising 2,000 2,000 2,237 (237)
Professional services 215,000 215,000 5,442 209,558
Special department supplies 6,300 6,300 2,820 3,480
Insurance 6,269 6,269 6,427 (158)
Capital lease payments 12,672 12,672 12,378 294
Capital outlay:
Office machines - - 38,299 (38,299)
Total planning and development 647,427 647,427 432,639 214,788
Property Maintenance
Personal services:
Salaries and wages 745,136 745,136 659,155 85,981
Overtime pay 19,253 19,253 18,442 811
FICA 58,476 58,476 49,655 8,821
Employee retirement 122,761 122,761 107,824 14,937
Employee insurance 148,140 148,140 135,359 12,781
Workers' compensation 23,881 23,881 37,072 (13,191)
Operating expenditures:
General supplies/postage 2,040 2,040 777 1,263
Dues/training/travel 1,880 1,880 1,821 59
Auto operating 29,157 29,157 46,517 (17,360)
Utility services 16,465 16,465 15,900 565
Contracts/repairs 34,110 34,110 55,848 (21,738)
Building materials/supplies 2,210 2,210 2,334 (124)
Uniforms/clothing 16,190 16,190 12,481 3,709
Professional services 46,822 46,822 49,246 (2,424)
Special department supplies 177,880 177,880 178,440 (560)
Insurance 18,260 18,260 25,942 (7,682)
Capital lease payments 52,714 52,714 47,130 5,584
Capital outlay:
Automotive equipment - - 28,499 (28,499)
Machines/equipment 11,250 11,250 53,417 (42,167)
Total property maintenance 1,526,625 1,526,625 1,525,859 766
(Continued)
Original Final Actual Final Budget
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
GENERAL FUND
SCHEDULE OF REVENUES AND EXPENDITURES
COMPARED WITH BUDGET
FOR THE YEAR ENDED DECEMBER 31, 2021
Budget Variance with
67
Expenditures (Continued):
General Government (Continued)
Information Technology
Personal services:
Salaries and wages $ 236,271 $ 236,271 $ 225,652 $ 10,619
FICA 18,075 18,075 16,714 1,361
Employee retirement 37,945 37,945 35,965 1,980
Employee insurance 24,690 24,690 23,252 1,438
Workers' compensation 8,093 8,093 5,750 2,343
Operating expenditures:
General supplies/postage 4,900 4,900 3,728 1,172
Dues/training/travel 12,350 12,350 5,978 6,372
Auto operating 2,213 2,213 376 1,837
Utility services 113,650 113,650 134,108 (20,458)
Data processing 63,120 63,120 65,808 (2,688)
Contracts/repairs 109,700 109,700 100,111 9,589
Insurance 19,367 19,367 19,855 (488)
Capital lease payments 21,450 21,450 21,233 217
Capital outlay:
Office machines 36,000 36,000 28,009 7,991
Total information technology 707,824 707,824 686,539 21,285
Total current general government 5,848,778 5,848,778 5,423,652 431,973
Total capital lease payments general government 101,335 101,335 94,471 6,864
Total capital outlay general government 63,450 63,450 182,149 (125,546)
Total general government 6,013,563 6,013,563 5,700,272 313,291
Public Safety
Personal services:
Salaries and wages 4,845,333 4,845,333 4,669,314 176,019
Overtime pay 172,686 172,686 206,104 (33,418)
FICA 383,878 383,878 358,815 25,063
Employee retirement 920,064 920,064 863,444 56,620
Employee insurance 757,160 757,160 693,092 64,068
Workers' compensation 160,068 160,068 116,575 43,493
Operating expenditures:
General supplies/postage 26,800 26,800 25,660 1,140
Dues/training/travel 50,000 50,000 37,236 12,764
Auto operating 207,325 207,325 261,450 (54,125)
Data processing 125,830 125,830 112,795 13,035
Contracts/repairs 265,000 265,000 221,950 43,050
Uniforms/clothing 106,100 106,100 88,221 17,879
CVA expenditures 36,320 36,320 28,618 7,702
LEN grant 10,000 10,000 1,426 8,574
Community policing 34,400 34,400 17,938 16,462
NAPS drug related 20,000 20,000 7,028 12,972
Professional services 26,700 26,700 24,868 1,832
Animal control services 36,800 36,800 5,063 31,737
Special department supplies 100,000 100,000 92,829 7,171
Insurance 80,782 80,782 105,139 (24,357)
Capital lease payments 478,803 478,803 446,581 32,222
Capital outlay:
Vehicles - - 361,451 (361,451)
Total current public safety 8,365,246 8,365,246 7,937,565 427,681
Total capital lease payments public safety 478,803 478,803 446,581 32,222
Total capital outlay public safety - - 361,451 (361,451)
Total public safety 8,844,049 8,844,049 8,745,597 98,452
(Continued)
Budget Variance with
Original Final Actual Final Budget
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
GENERAL FUND
SCHEDULE OF REVENUES AND EXPENDITURES
COMPARED WITH BUDGET
FOR THE YEAR ENDED DECEMBER 31, 2021
68
Expenditures (Continued):
Public Works
Engineering
Personal services:
Salaries and wages $ 165,636 $ 165,636 $ 148,255 $ 17,381
FICA 12,671 12,671 11,017 1,654
Employee retirement 26,601 26,601 23,354 3,247
Employee insurance 24,690 24,690 22,412 2,278
Workers' compensation 5,130 5,130 3,645 1,485
Operating expenditures:
General supplies/postage 500 500 414 86
Dues/training/travel 2,835 2,835 1,749 1,086
Auto operating 3,075 3,075 2,871 204
Data processing 6,775 6,775 6,157 618
Contracts/repairs 2,480 2,480 2,230 250
Uniforms/clothing 1,000 1,000 472 528
Advertising 100 100 - 100
Professional services 1,000 1,000 - 1,000
Special department supplies 1,500 1,500 1,136 364
Insurance 1,211 1,211 1,242 (31)
Capital lease payments 5,544 5,544 5,218 326
Total engineering 260,748 260,748 230,172 30,576
Street Lighting and Traffic Signals
Operating expenditures:
Dues/training/travel 1,350 1,350 - 1,350
Utility services 432,000 432,000 443,161 (11,161)
Contracts/repairs 3,000 3,000 2,445 555
Special department supplies 16,000 16,000 14,187 1,813
Insurance 23,524 23,524 24,117 (593)
Total street lighting and traffic signals 475,874 475,874 483,910 (8,036)
Streets and Drains
Personal services:
Salaries and wages 460,266 460,266 454,424 5,842
Overtime pay 7,650 7,650 5,030 2,620
FICA 35,796 35,796 33,812 1,984
Employee retirement 75,147 75,147 73,085 2,062
Employee insurance 82,300 82,300 75,939 6,361
Workers' compensation 15,064 15,064 14,039 1,025
Operating expenditures:
General supplies/postage 800 800 711 89
Dues/training/travel 2,900 2,900 894 2,006
Auto operating 30,625 30,625 33,647 (3,022)
Contracts/repairs 19,860 19,860 21,510 (1,650)
Building materials/supplies 70,000 70,000 73,874 (3,874)
Uniforms/clothing 7,645 7,645 8,098 (453)
Professional services 19,270 19,270 13,043 6,227
Special department supplies 21,200 21,200 21,569 (369)
Insurance 12,120 12,120 13,248 (1,128)
Capital lease payments 48,541 48,541 45,487 3,054
Capital outlay:
Machines/equipment - - 45,679 (45,679)
Total streets and drains 909,184 909,184 934,089 (24,905)
Total current public works 1,591,721 1,591,721 1,551,787 39,934
Total capital lease payments public works 54,085 54,085 50,705 3,380
Total capital outlay public works - - 45,679 (45,679)
Total public works 1,645,806 1,645,806 1,648,171 (2,365)
(Continued)
Final Actual Final Budget
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
GENERAL FUND
SCHEDULE OF REVENUES AND EXPENDITURES
COMPARED WITH BUDGET
FOR THE YEAR ENDED DECEMBER 31, 2021
Budget Variance with
Original
69
Expenditures (Continued):
Parks, Recreation, and Tourism
Recreation
Personal services:
Salaries and wages $ 438,110 $ 438,110 $ 429,297 $ 8,813
Overtime pay 10,200 10,200 14,063 (3,863)
FICA 34,296 34,296 32,786 1,510
Employee retirement 71,999 71,999 70,068 1,931
Employee insurance 57,610 57,610 53,359 4,251
Workers' compensation 10,589 10,589 7,523 3,066
Operating expenditures:
General supplies/postage 2,400 2,400 5,432 (3,032)
Dues/training/travel 6,395 6,395 7,020 (625)
Auto operating 2,425 2,425 1,310 1,115
Contracts/repairs 9,500 9,500 4,939 4,561
Uniforms/clothing 900 900 524 376
Advertising 1,300 1,300 785 515
Professional services 150,900 150,900 180,249 (29,349)
Special department supplies 6,000 6,000 3,344 2,656
Basketball program 21,500 21,500 25,346 (3,846)
Softball program 11,400 11,400 14,123 (2,723)
Football program 21,500 21,500 40,179 (18,679)
Baseball program 32,000 32,000 48,276 (16,276)
Soccer program 36,000 36,000 39,929 (3,929)
Volleyball program 3,000 3,000 3,289 (289)
Concession stand supplies 76,000 76,000 134,013 (58,013)
Insurance 21,790 21,790 22,339 (549)
Capital lease payments 8,800 8,800 8,359 441
Capital outlay:
Furniture/fixtures 1,500 1,500 - 1,500
Total recreation 1,036,114 1,036,114 1,146,552 (110,438)
Parks
Personal services:
Salaries and wages 235,647 235,647 241,470 (5,823)
Overtime pay 14,280 14,280 11,441 2,839
FICA 19,119 19,119 18,174 945
Employee retirement 40,138 40,138 40,166 (28)
Employee insurance 45,265 45,265 42,405 2,860
Workers' compensation 7,214 7,214 5,125 2,089
Operating expenditures:
General supplies/postage 1,500 1,500 336 1,164
Dues/training/travel 1,450 1,450 - 1,450
Auto operating 10,150 10,150 9,295 855
Utility services 20,500 20,500 27,316 (6,816)
Contracts/repairs 35,000 35,000 42,502 (7,502)
Building materials/supplies 13,500 13,500 8,486 5,014
Uniforms/clothing 3,250 3,250 1,553 1,697
Professional services 6,000 6,000 8,298 (2,298)
Special department supplies 15,000 15,000 6,576 8,424
Insurance 5,886 5,886 6,034 (148)
Capital lease payments 3,300 3,300 2,104 1,196
Capital outlay:
Machines/equipment - - 11,169 (11,169)
Total parks 477,199 477,199 482,450 (5,251)
(Continued)
Original Final Actual Final Budget
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
GENERAL FUND
SCHEDULE OF REVENUES AND EXPENDITURES
COMPARED WITH BUDGET
FOR THE YEAR ENDED DECEMBER 31, 2021
Budget Variance with
70
Expenditures (Continued):
Parks, Recreation, and Tourism (Continued)
Community Center
Personal services:
Salaries and wages $ 41,645 $ 41,645 $ 41,361 $ 284
Overtime pay 2,040 2,040 3,132 (1,092)
FICA 3,342 3,342 3,479 (137)
Employee retirement 7,016 7,016 7,271 (255)
Employee insurance 8,230 8,230 7,527 703
Workers' compensation 2,592 2,592 1,842 750
Operating expenditures:
General supplies/postage 2,800 2,800 3,440 (640)
Auto operating 275 275 - 275
Utility services 23,000 23,000 20,450 2,550
Contracts/repairs 35,000 35,000 39,089 (4,089)
Uniforms/clothing 500 500 - 500
Advertising 1,000 1,000 1,000 -
Professional services - - 1,836 (1,836)
Special department supplies 5,000 5,000 1,225 3,775
Insurance 2,487 2,487 2,550 (63)
Total community center 134,927 134,927 134,202 725
RVP Activities Center
Personal services:
Salaries and wages 291,011 291,011 277,330 13,681
Overtime pay 6,120 6,120 4,966 1,154
FICA 22,730 22,730 20,960 1,770
Employee retirement 47,719 47,719 44,722 2,997
Employee insurance 41,150 41,150 37,633 3,517
Workers' compensation 11,635 11,635 8,266 3,369
Operating expenditures:
General supplies/postage 15,500 15,500 17,521 (2,021)
Dues/training/travel 1,400 1,400 884 516
Auto operating 1,525 1,525 307 1,218
Contracts/repairs 90,620 90,620 56,088 34,532
Uniforms/clothing 1,400 1,400 108 1,292
Advertising 2,300 2,300 1,080 1,220
Tournaments/special events 170,000 170,000 495,069 (325,069)
Special department supplies 19,500 19,500 20,493 (993)
Insurance 15,766 15,766 16,163 (397)
Capital outlay:
Furniture/fixtures 1,500 1,500 - 1,500
Total RVP activities center 739,876 739,876 1,001,590 (261,714)
(Continued)
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
GENERAL FUND
SCHEDULE OF REVENUES AND EXPENDITURES
COMPARED WITH BUDGET
FOR THE YEAR ENDED DECEMBER 31, 2021
Budget Variance with
Original Final Actual Final Budget
71
Expenditures (Continued):
Parks, Recreation, and Tourism (Continued)
Tourism
Personal services:
Salaries and wages $ 127,588 $ 127,588 $ 103,260 $ 24,328
Overtime pay 5,100 5,100 3,157 1,943
FICA 10,151 10,151 7,908 2,243
Employee retirement 21,310 21,310 16,552 4,758
Employee insurance 24,690 24,690 22,580 2,110
Workers' compensation 4,220 4,220 2,998 1,222
Operating expenditures:
General supplies/postage 8,000 8,000 11,306 (3,306)
Auto operating 700 700 4,237 (3,537)
Data processing 1,100 1,100 - 1,100
Uniforms/clothing 1,000 1,000 476 524
Professional services 2,000 2,000 10,968 (8,968)
Tourism events/festivals/supplies 130,000 130,000 1,499 128,501
Special department supplies 25,000 25,000 23,025 1,975
Insurance 10,705 10,705 10,975 (270)
Total tourism 371,564 371,564 218,941 152,623
Total current parks, recreation, and tourism 2,744,580 2,744,580 2,962,103 (217,523)
Total capital lease payments parks, recreation, and tourism 12,100 12,100 10,463 1,637
Total capital outlay parks, recreation, and tourism 3,000 3,000 11,169 (8,169)
Total parks, recreation, and tourism 2,759,680 2,759,680 2,983,735 (224,055)
Total expenditures $ 19,263,098 $ 19,263,098 $ 19,077,775 $ 185,323
Original Final Actual Final Budget
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
GENERAL FUND
SCHEDULE OF REVENUES AND EXPENDITURES
COMPARED WITH BUDGET
FOR THE YEAR ENDED DECEMBER 31, 2021
Budget Variance with
72
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
DECEMBER 31, 2021
Total
Special Capital Nonmajor
Revenue Projects Governmental
ASSETS Funds Funds Funds
Cash and cash equivalents $ 2,734,097 $ 3,416,675 $ 6,150,772
Intergovernmental receivables 4,753 - 4,753
Total assets $ 2,738,850 $ 3,416,675 $ 6,155,525
LIABILITIES AND FUND BALANCES
LIABILITIES
Accounts payable $ 43,636 $ 201,551 $ 245,187
Retainage payable - 158,464 158,464
Total liabilities 43,636 360,015 403,651
FUND BALANCES
Restricted:
Public safety - fire division 137,432 - 137,432
Special projects 2,557,782 - 2,557,782
Capital projects - 2,506,350 2,506,350
Committed:
Capital projects - 544,155 544,155
Assigned:
Capital projects - 6,155 6,155
Total fund balances 2,695,214 3,056,660 5,751,874
Total liabilities, deferred inflows of
resources and fund balances $ 2,738,850 $ 3,416,675 $ 6,155,525
73
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2021
Total
Special Capital Nonmajor
Revenue Projects Governmental
Funds Funds Funds
Revenues:
Intergovernmental $ 216,946 $ - $ 216,946
Local hospitality and accommodations taxes 2,385,218 - 2,385,218
Interest earnings 6,549 6,825 13,374
Miscellaneous 100,000 24,785 124,785
Total revenues 2,708,713 31,610 2,740,323
Expenditures:
Current:
Public safety 47,392 - 47,392
Public works - 1,690 1,690
Parks, recreation & tourism 391,150 - 391,150
Capital outlay 257,100 1,880,309 2,137,409
Total expenditures 695,642 1,881,999 2,577,641
Excess (deficiency)
of revenues over
(under) expenditures 2,013,071 (1,850,389) 162,682
Other financing uses:
Transfers out (1,211,010) - (1,211,010)
Total other financing uses (1,211,010) - (1,211,010)
Net change in
fund balances 802,061 (1,850,389) (1,048,328)
Fund balances, beginning of year 1,893,153 4,907,049 6,800,202
Fund balances, end of year $ 2,695,214 $ 3,056,660 $ 5,751,874
74
Riverfront/Fireman'sFundASSETSCash and cash equivalents $ 312,962 $ 146,256 $ 2,274,879 $ 2,734,097 Intergovernmental receivable 4,753 - - 4,753 Total assets $ 317,715 $ 146,256 $ 2,274,879 $ 2,738,850 LIABILITIES AND FUND BALANCESLIABILITIESAccounts payable $ 12,800 $ 8,824 $ 22,012 $ 43,636 Total liabilities12,800 8,824 22,012 43,636 FUND BALANCES Restricted: Public safety - fire division- 137,432 - 137,432 Special projects304,915 - 2,252,867 2,557,782 Total fund balances 304,915 137,432 2,252,867 2,695,214 Total liabilities and fund balances $ 317,715 $ 146,256 $ 2,274,879 $ 2,738,850 CITY OF NORTH AUGUSTA, SOUTH CAROLINACOMBINING BALANCE SHEET NONMAJOR SPECIAL REVENUE FUNDS DECEMBER 31, 2021TotalTaxFundSpecial RevenueRedevelopmentFundsFundAccommodations Central Core Nonmajor75
NonmajorCapital ProjectsFundsASSETSCash and cash equivalents $ 108,089 $ 442,021 $ 2,216,255 $ 553,813 $ 96,497 $ 3,416,675 Total assets $ 108,089 $ 442,021 $ 2,216,255 $ 553,813 $ 96,497 $ 3,416,675 LIABILITIES AND FUND BALANCESLIABILITIESAccounts payable $ - $ - $ 201,551 $ - $ - $ 201,551 Retainage payable - - 158,464 - - 158,464 Total liabilities - - 360,015 - - 360,015 FUND BALANCES Restricted: Capital projects 108,089 442,021 1,856,240 100,000 - 2,506,350 Committed: Capital projects - - - 453,813 90,342 544,155 Assigned: Capital projects - - - - 6,155 6,155 Total fund balances 108,089 442,021 1,856,240 553,813 96,497 3,056,660 Total liabilities and fund balances $ 108,089 $ 442,021 $ 2,216,255 $ 553,813 $ 96,497 $ 3,416,675 FundCITY OF NORTH AUGUSTA, SOUTH CAROLINACOMBINING BALANCE SHEET NONMAJOR CAPITAL PROJECTS FUNDS DECEMBER 31, 2021FundFundImprovementsFundSales TaxStreet TotalTransportation ImprovementSales Tax IIIFundSales Tax II76
Fireman'sFundRevenues:Local hospitality and accommodations taxes$- $- $ 2,385,218 $ 2,385,218 Intergovernmental142,526 74,420- 216,946 Interest earnings5063575,6866,549 Miscellaneous- - 100,000100,000 Total revenues143,032 74,777 2,490,904 2,708,713 Expenditures:Current:Public safety- 47,392- 47,392 Parks, recreation and tourism47,450- 343,700391,150 Capital outlay- - 257,100257,100 Total expenditures47,450 47,392 600,800 695,642 Excess of revenues over expenditures95,582 27,385 1,890,104 2,013,071 Other financing uses Transfers out(20,935) - (1,190,075) (1,211,010) Total other financing uses(20,935) - (1,190,075) (1,211,010) Net change in fund balances74,647 27,385 700,029 802,061 Fund balances, beginning of year230,268 110,0471,552,838 1,893,153 Fund balances, end of year$ 304,915 $ 137,432 $ 2,252,867 $ 2,695,214 CITY OF NORTH AUGUSTA, SOUTH CAROLINACOMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCESFOR THE YEAR ENDED DECEMBER 31, 2021NONMAJOR SPECIAL REVENUE FUNDS TotalTaxFundAccommodationsSpecial RevenueNonmajorRiverfront/RedevelopmentFundCentral CoreFunds77
NonmajorCapital ProjectsFundsRevenues:Interest earnings $ 177 $ 741 $3,896$ 1,693 $318 $ 6,825 Miscellaneous- - - 24,785- 24,785 Total revenues177 741 3,896 26,478 318 31,610 Expenditures:Current:Public works- - - 1,690- 1,690 Capital outlay- 127,5191,699,46553,325- 1,880,309 Total expenditures- 127,519 1,699,465 55,015 - 1,881,999 Net change in fund balances177 (126,778) (1,695,569) (28,537) 318 (1,850,389) Fund balances, beginning of year107,912568,7993,551,809582,35096,1794,907,049 Fund balances, end of year$ 108,089 $ 442,021 $ 1,856,240 $ 553,813 $ 96,497 $ 3,056,660 TotalCITY OF NORTH AUGUSTA, SOUTH CAROLINACOMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCESNONMAJOR CAPITAL PROJECTS FUNDS FOR THE YEAR ENDED DECEMBER 31, 2021Transportation Sales Tax Sales Tax II Improvements ImprovementStreet Sales Tax IIIFund Fund Fund FundFund78
THIS PAGE INTENTIONALLY LEFT BLANK
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
Budget Actual
OPERATING REVENUES
Water sales $ 3,284,616 $ 3,706,445 $ 421,829
Sewer sales 6,759,357 7,140,208 380,851
Water tap fees 70,000 83,548 13,548
Sewer tap fees 147,120 191,640 44,520
Fire protection fees 13,664 13,871 207
Other 497,074 589,789 92,715
Total operating revenues 10,771,831 11,725,501 953,670
OPERATING EXPENSES
Utilities finance 625,361 655,961 (30,600)
Utilities administration 520,354 466,167 54,187
Water operations and maintenance 874,965 705,876 169,089
Water production and treatment 1,606,696 1,541,516 65,180
Wastewater operations and maintenance 4,892,567 4,740,700 151,867
Depreciation and amortization - 1,622,712 (1,622,712)
Total operating expenses 8,519,943 9,732,932 (1,212,989)
Operating income 2,251,888 1,992,569 (259,319)
NONOPERATING REVENUE (EXPENSE)
Interest income 25,000 25,822 822
Loss on sale of capital assets - (420) (420)
Interest expense - (349,250) (349,250)
Bond Issuance - (84,612) (84,612)
Intergovernmental - 23,515 23,515
Total nonoperating revenues (expenses), net 25,000 (384,945) (409,945)
Income before capital contributions and transfers 2,276,888 1,607,624 (669,264)
CAPITAL CONTRIBUTIONS - 537,983 537,983
TRANSFERS
Transfers in 22,805 22,805 -
Transfers out (2,225,547) (835,547) 1,390,000
Total transfers (2,202,742) (812,742) 1,390,000
Change in net position 74,146 1,332,865 1,258,719
Total net position, beginning of year 63,417,612 63,417,612 -
Total net position, end of year $ 63,491,758 $ 64,750,477 $ 1,258,719
WATER AND WASTEWATER SYSTEM FUND
SCHEDULE OF REVENUES AND EXPENSES
BUDGET AND ACTUAL - GAAP BASIS
FOR THE YEAR ENDED DECEMBER 31, 2021
Variance with
Budget
79
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
Budget Actual
OPERATING EXPENSES
Utilities Finance
Personal services:
Salaries and wages $ 225,781 $ 217,276 $ 8,505
FICA 17,272 15,860 1,412
Employee retirement 36,260 29,102 7,158
Employee insurance 41,150 37,633 3,517
Workers' compensation 6,956 4,942 2,014
Other operating expenses:
General supplies/postage 95,000 105,311 (10,311)
Dues/training/travel 3,200 3,656 (456)
Data processing 109,400 160,089 (50,689)
Contracts and repairs 26,500 25,435 1,065
Professional services 19,759 12,716 7,043
Special departmental supplies 500 41 459
Insurance 12,583 12,900 (317)
Bad debts 31,000 31,000 -
Total utilities finance 625,361 655,961 (30,600)
Utilities Administration:
Personal services:
Salaries and wages 305,909 279,110 26,799
Overtime pay 7,644 7,495 149
FICA 23,987 20,991 2,996
Employee retirement 50,357 39,342 11,015
Employee insurance 53,495 48,924 4,571
Workers' compensation 10,570 7,581 2,989
Other operating expenses:
General supplies 3,840 1,062 2,778
Dues/training 3,050 2,621 429
Auto operating 9,476 13,774 (4,298)
Utility services 10,977 12,530 (1,553)
Contracts and repairs 20,200 25,133 (4,933)
Building materials 350 - 350
Uniforms and clothing 4,150 2,122 2,028
Professional services 5,962 1,650 4,312
Special departmental supplies 150 103 47
Insurance 3,637 3,729 (92)
Lease purchase 6,600 - 6,600
Total utilities administration 520,354 466,167 54,187
Water Operations and Maintenance:
Personal services:
Salaries and wages 385,301 344,862 40,439
Overtime pay 13,742 12,036 1,706
FICA 30,527 25,781 4,746
Employee retirement 64,086 47,498 16,588
Employee insurance 74,070 67,740 6,330
Workers' compensation 12,952 11,148 1,804
Other operating expenses:
Dues/training 2,180 2,154 26
Auto operating 25,975 29,120 (3,145)
Contracts and repairs 18,685 19,164 (479)
Building materials 10,685 9,589 1,096
Uniforms and clothing 7,470 3,811 3,659
Special departmental supplies 162,345 123,743 38,602
Insurance 9,003 9,230 (227)
Lease purchase 39,444 - 39,444
Buildings/fixed equipment 10,000 - 10,000
Clay pump station improvements 8,500 - 8,500
Total water operations and maintenance 874,965 705,876 169,089
(Continued)
BUDGET AND ACTUAL - GAAP BASIS
FOR THE YEAR ENDED DECEMBER 31, 2021
SCHEDULE OF OPERATING EXPENSES
Variance with
Budget
WATER AND WASTEWATER SYSTEM FUND
80
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
Budget Actual
OPERATING EXPENSES (Continued)
Water Production and Treatment:
Personal services:
Salaries and wages $ 445,359 $ 456,951 $ (11,592)
Overtime pay 29,296 28,347 949
FICA 36,311 34,040 2,271
Employee retirement 76,230 64,957 11,273
Employee insurance 65,840 60,214 5,626
Workers' compensation 15,314 10,880 4,434
Other operating expenses:
General supplies 3,440 969 2,471
Dues/training/travel 4,250 4,484 (234)
Auto operating 3,153 5,725 (2,572)
Utility services 356,385 407,721 (51,336)
Contracts and repairs 151,309 151,159 150
Building materials 950 1,026 (76)
Uniforms and clothing 6,640 3,200 3,440
Professional services 89,741 86,390 3,351
Special departmental supplies 207,386 175,974 31,412
ACPSA treatment charges 2,975 2,523 452
Insurance 45,801 46,956 (1,155)
Lease purchase 58,116 - 58,116
Machines/equipment 8,200 - 8,200
Total water production and treatment 1,606,696 1,541,516 65,180
Wastewater Operations and Maintenance:
Personal services:
Salaries and wages 489,453 441,962 47,491
Overtime pay 18,205 20,393 (2,188)
FICA 38,836 32,827 6,009
Employee retirement 81,530 63,989 17,541
Employee insurance 90,530 82,794 7,736
Workers' compensation 15,646 15,040 606
Other operating expenses:
Dues/training/travel 700 666 34
Auto operating 23,493 28,661 (5,168)
Utility services 65,539 76,804 (11,265)
Contracts and repairs 80,250 68,538 11,712
Building materials 12,300 8,463 3,837
Uniforms and clothing 8,600 4,677 3,923
Special departmental supplies 21,400 (3,894) 25,294
ACPSA treatment charges 3,785,110 3,876,963 (91,853)
Lease purchase 137,094 - 137,094
Buildings/fixed equipment 8,000 - 8,000
Insurance 15,881 22,817 (6,936)
Total wastewater operations and maintenance 4,892,567 4,740,700 151,867
Depreciation and amortization - 1,622,712 (1,622,712)
Total operating expenses $ 8,519,943 $ 9,732,932 $ (1,212,989)
Variance with
Budget
BUDGET AND ACTUAL - GAAP BASIS
FOR THE YEAR ENDED DECEMBER 31, 2021
WATER AND WASTEWATER SYSTEM FUND
SCHEDULE OF OPERATING EXPENSES
81
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
Budget Actual
OPERATING REVENUES
Stormwater utility fees $ 822,500 $ 837,701 $ 15,201
Other 8,212 20,918 12,706
Total operating revenues 830,712 858,619 27,907
OPERATING EXPENSES
Stormwater operations 811,381 594,041 217,340
Depreciation - 286,988 (286,988)
Total operating expenses 811,381 881,029 (69,648)
Operating income (loss)19,331 (22,410) (41,741)
NONOPERATING REVENUE (EXPENSES)
Interest income 6,000 1,928 (4,072)
Interest expense and fiscal charges - (2,328) (2,328)
Total nonoperating revenues, net 6,000 (400) (6,400)
Income (loss) before capital contributions and transfers 25,331 (22,810) (48,141)
CAPITAL CONTRIBUTIONS - 793,730 793,730
TRANSFERS
Transfers in 1,993 1,993 -
Transfers out (27,324) (27,324) -
Total transfers (25,331) (25,331) -
Change in net position - 745,589 745,589
Total net position, beginning of year 6,377,604 6,377,604 -
Total net position, end of year $ 6,377,604 $ 7,123,193 $ 745,589
Variance with
Budget
STORMWATER UTILITY FUND
SCHEDULE OF REVENUES AND EXPENSES
BUDGET AND ACTUAL - GAAP BASIS
FOR THE YEAR ENDED DECEMBER 31, 2021
82
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
Budget Actual
OPERATING EXPENSES
Personal services:
Salaries and wages $ 398,720 $ 377,653 $ 21,067
Overtime pay 2,886 1,560 1,326
FICA 30,723 27,654 3,069
Employee retirement 64,498 50,819 13,679
Employee insurance 53,495 48,756 4,739
Workers' compensation 12,039 8,553 3,486
Other operating expenses:
General supplies 3,300 423 2,877
Dues/training 4,475 3,191 1,284
Auto operating 8,750 6,708 2,042
Data processing 12,000 16,919 (4,919)
Contracts and repairs 8,240 4,108 4,132
Uniforms and clothing 3,150 2,742 408
Advertising 3,800 3,544 256
Professional services 22,233 25,741 (3,508)
Special departmental supplies 10,300 11,036 (736)
Insurance 4,520 4,634 (114)
Leases 27,610 - 27,610
Drainage projects 140,642 - 140,642
Total stormwater operations 811,381 594,041 217,340
Depreciation - 286,988 (286,988)
Total operating expenses $ 811,381 $ 881,029 $ (69,648)
Budget
Variance with
STORMWATER UTILITY FUND
SCHEDULE OF OPERATING EXPENSES
BUDGET AND ACTUAL - GAAP BASIS
FOR THE YEAR ENDED DECEMBER 31, 2021
83
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
Budget Actual
OPERATING REVENUES
Sanitation service fees $ 3,506,892 $ 3,577,468 $ 70,576
Recycling fees 1,229,954 1,077,440 (152,514)
Sale of recyclables 102,064 136,398 34,334
Other 53,784 89,212 35,428
Total operating revenues 4,892,694 4,880,518 (12,176)
OPERATING EXPENSES
Sanitation operations 2,782,107 2,340,874 441,233
Material recovery facility 1,654,413 1,530,433 123,980
Depreciation 95,763 564,405 (468,642)
Total operating expenses 4,532,283 4,435,712 96,571
Operating income 360,411 444,806 84,395
NONOPERATING REVENUE (EXPENSES)
Interest income 18,000 6,978 (11,022)
Gain on sale of property - 95,701 95,701
Interest expense - (43,454) (43,454)
Total nonoperating revenues, net 18,000 59,225 41,225
Income before capital contributions and transfers 378,411 504,031 125,620
CAPITAL CONTRIBUTIONS - 668 668
TRANSFERS
Transfers in 8,095 8,095 -
Transfers out (386,506) (386,506) -
Total transfers (378,411) (378,411) -
Change in net position - 126,288 126,288
Total net position, beginning of year 1,674,576 1,674,576 -
Total net position, end of year $ 1,674,576 $ 1,800,864 $ 126,288
Variance with
Budget
SCHEDULE OF OPERATING REVENUES AND EXPENSES
SANITATION SERVICES FUND
BUDGET AND ACTUAL - GAAP BASIS
FOR THE YEAR ENDED DECEMBER 31, 2021
84
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
Budget Actual
OPERATING EXPENSES
Sanitation Operations
Personal services:
Salaries and wages $ 1,167,372 $ 1,033,708 $ 133,664
Overtime pay 15,032 18,773 (3,741)
FICA 90,454 77,421 13,033
Employee retirement 189,894 145,467 44,427
Employee insurance 218,095 199,458 18,637
Workers' compensation 37,305 26,504 10,801
Other operating expenses:
General supplies 1,520 1,519 1
Dues/training 900 840 60
Auto operating 311,765 377,329 (65,564)
Utility services 22,800 28,688 (5,888)
Data processing 17,000 24,439 (7,439)
Contracts and repairs 11,615 13,133 (1,518)
Uniforms and clothing 21,562 8,965 12,597
Professional services 7,807 8,301 (494)
Special departmental supplies 248,224 287,219 (38,995)
Insurance 47,469 89,110 (41,641)
Leases 373,293 - 373,293
Total sanitation operations 2,782,107 2,340,874 441,233
Material Recovery Facility
Personal services:
Salaries and wages 395,850 381,792 14,058
Overtime pay 12,395 10,173 2,222
FICA 31,231 28,895 2,336
Employee retirement 65,564 53,423 12,141
Employee insurance 69,955 64,190 5,765
Workers' compensation 12,560 22,213 (9,653)
Other operating expenses:
General supplies 400 428 (28)
Dues/training 655 649 6
Auto operating 82,298 93,527 (11,229)
Utility services 14,380 15,599 (1,219)
Contracts and repairs 162,000 176,300 (14,300)
Building material 500 - 500
Recycling expenses 500 - 500
Uniforms and clothing 6,840 3,440 3,400
Professional services 185,544 145,323 40,221
Special departmental supplies 492,294 478,909 13,385
Insurance 51,767 55,572 (3,805)
Leases 69,680 - 69,680
Total material recovery facility 1,654,413 1,530,433 123,980
Depreciation 95,763 564,405 (468,642)
Total operating expenses $ 4,532,283 $ 4,435,712 $ 96,571
Budget
Variance with
FOR THE YEAR ENDED DECEMBER 31, 2021
SCHEDULE OF OPERATING EXPENSES
BUDGET AND ACTUAL - GAAP BASIS
SANITATION SERVICES FUND
85
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
UNIFORM SCHEDULE OF COURT FINES, ASSESSMENTS AND SURCHARGES (per ACT 96)
For The Year Ended December 31, 2021
FOR THE STATE TREASURER'S OFFICE:
COUNTY / MUNICIPAL FUNDS COLLECTED
BY CLERK OF COURT
General
Sessions
Magistrate
Court
Municipal
Court Total
Court Fines and Assessments:
Court fines and assessments collected N/A N/A $ 846,666 $ 846,666
Court fines and assessments remitted to State
Treasurer N/A N/A 457,174 457,174
Total Court Fines and Assessments retained N/A N/A $ 389,492 $ 389,492
Surcharges and Assessments retained for victim
services:
Surcharges collected and retained N/A N/A $ 4,465 $ 4,465
Assessments retained N/A N/A 38,752 38,752
Total Surcharges and Assessments retained for victim
services N/A N/A $ 43,217 $ 43,217
FOR THE DEPARTMENT OF CRIME VICTIM COMPENSATION (DCVC)
Municipal County Total
$ 119,094 N/A $ 119,094
- N/A -
38,752 N/A 38,752
4,465 N/A 4,465
- N/A -
- N/A -
- N/A -
- N/A -
- N/A -
- N/A -
$ 162,311 N/A $ 162,311
(1) Town of
VICTIM SERVICE FUNDS COLLECTED
Carryforward from Previous Year – Beginning Balance
Victim Service Revenue:
Victim Service Fines Retained by City/County Treasurer
Victim Service Assessments Retained by City/County Treasurer
Victim Service Surcharges Retained by City/County Treasurer
Interest Earned
Grant Funds Received
Grant from:
General Funds Transferred to Victim Service Fund
Contribution Received from Victim Service Contracts:
(2) Town of
(3) City of
Total Funds Allocated to Victim Service Fund + Beginning Balance (A)
Developed by the Office of the Attorney General, Department of Crime Victim Compensation
86
CITY OF NORTH AUGUSTA, SOUTH CAROLINA
UNIFORM SCHEDULE OF COURT FINES, ASSESSMENTS AND SURCHARGES (per ACT 96)
For The Year Ended December 31, 2021
Municipal County Total
$ 10,362 N/A $ 10,362
4,618 N/A 4,618
- N/A -
- N/A -
12,000 N/A 12,000
- N/A -
12,000 N/A 12,000
- N/A -
38,980 N/A 38,980
123,331 N/A 123,331
- N/A -
$ 123,331 N/A $ 123,331
(2) Rape Crisis Center:
Expenditures for Victim Service Program:
Salaries and Benefits
Operating Expenditures
Victim Service Contract(s):
(1) Entity's Name
(2) Entity's Name
Victim Service Donation(s):
(1) Domestic Violence Shelter: Cumbie Center
(3) Other local direct crime victims service agency: Child Advocacy
Center of Aiken County
Transferred to General Fund
Total Expenditures from Victim Service Fund/Program (B)
Less: Prior Year Fund Deficit Repayment
Carryforward Funds – End of Year
Total Victim Service Funds Retained by Municipal/County Treasurer (A-B)
Developed by the Office of the Attorney General, Department of Crime Victim Compensation
87
THIS PAGE INTENTIONALLY LEFT BLANK
STATISTICAL
SECTION
North )1 1
Augusta
South Carolina's Riverfront
STATISTICAL SECTION
This part of the City’s annual comprehensive financial report presents detailed information as a context for
understanding what the information in the financial statements, note disclosures, required supplementary
information, and supplementary information says about the City’s overall financial health.
Contents
Page
Financial Trends .......................................................................................................................................... 88 - 92
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 ........................................................................................................................................ 93 - 99
These schedules contain information to help the reader assess the City’s most significant local
revenue source, the property tax.
Debt Capacity ........................................................................................................................................... 100 - 104
These schedules present 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 ............................................................................................. 105 - 107
These schedules offer demographic and economic indicators to help the reader understand the
environment within which the City’s financial activities take place.
Operating Information ............................................................................................................................. 108 - 111
These schedules contain service and infrastructure data to help the reader understand how the
information in the City’s financial report relates to the services the City provides and the activities it
performs.
Sources: Unless otherwise noted, the information in these schedules is derived from the City’s financial reports for
the relevant year.
2012 2013 2014 2015 2016
Governmental activities
Net investment in capital assets 51,180,628$ 53,791,597$ 57,779,457$ 59,649,524$ 60,261,553$
Restricted 7,210,998 7,810,702 7,536,710 6,964,338 7,616,189
Unrestricted 7,342,802 5,466,773 4,267,933 (6,848,500) (5,705,943)
Total governmental activities net position 65,734,428$ 67,069,072$ 69,584,100$ 59,765,362$ 62,171,799$
Business-type activities
Net investment in capital assets 46,022,914$ 47,734,609$ 51,802,542$ 53,610,839$ 53,203,765$
Restricted 10,116,845 10,104,431 9,883,717 10,248,230 11,374,284
Unrestricted 8,233,390 7,777,449 6,767,765 (1,175,007) (387,763)
Total business-type activities net position 64,373,149$ 65,616,489$ 68,454,024$ 62,684,062$ 64,190,286$
Primary Government
Net investment in capital assets 97,203,542$ 101,526,206$ 109,581,999$ 113,260,363$ 113,465,318$
Restricted 17,327,843 17,915,133 17,420,427 17,212,568 18,990,473
Unrestricted 15,576,192 13,244,222 11,035,698 (8,023,507) (6,093,706)
Total primary government net position 130,107,577$ 132,685,561$ 138,038,124$ 122,449,424$ 126,362,085$
2017 2018 2019 2020 2021
Governmental activities
Net investment in capital assets 46,115,747$ 65,640,358$ 64,540,113$ 64,277,060$ 54,204,071$
Restricted 23,744,254 6,574,221 8,729,598 7,848,687 19,786,412
Unrestricted (5,641,833) (7,354,106) (9,984,502) (9,345,838) (7,117,195)
Total governmental activities net position 64,218,168$ 64,860,473$ 63,285,209$ 62,779,909$ 66,873,288$
Business-type activities
Net investment in capital assets 55,927,179$ 58,580,045$ 60,703,383$ 61,930,753$ 62,504,303$
Restricted 9,618,737 7,977,008 8,433,456 8,358,324 8,481,549
Unrestricted 492,016 1,215,467 1,431,160 1,855,707 3,230,474
Total business-type activities net position 66,037,932$ 67,772,520$ 70,567,999$ 72,144,784$ 74,216,326$
Primary Government
Net investment in capital assets 102,042,926$ 124,220,403$ 125,243,496$ 126,207,813$ 116,708,374$
Restricted 33,362,991 14,551,229 17,163,054 16,207,011 28,267,961
Unrestricted (5,149,817) (6,138,639) (8,553,342) (7,490,131) (3,886,721)
Total primary government net position 130,256,100$ 132,632,993$ 133,853,208$ 134,924,693$ 141,089,614$
Note: A prior period adjustment for ad valorem property tax revenues and related allowance of $28,681 required a restatement of beginning net
position for Fiscal Year 2014
Note: GASB 68, Accounting and Financial Reporting for Pensions and GASB 71 Pension Transition for Contributions Made Subsequent to the
Measurement Date, were adopted by the City for Fiscal Year 2015. A restatement of beginning net position of $18,624,474 was required to
reflect implementation.
City of North Augusta, South Carolina
Net Position by Component
Last Ten Fiscal Years
(accrual basis of accounting)
Year Ending December 31
Year Ending December 31
88
2012 2013 2014 2015 2016
Expenses
Governmental activities: General government 3,574,637$ 3,893,288$ 4,181,576$ 4,573,665$ 4,519,094$
Public safety 6,975,047 6,615,699 7,232,466 7,517,589 8,473,548
Public works 2,980,032 2,609,477 2,348,897 2,051,542 580,327 Parks, recreation, and tourism 4,053,013 4,212,673 4,501,259 4,723,035 5,061,480 Debt service - interest and fees 340,610 313,866 163,147 168,583 155,047
Loss on debt defeasance - 277,682 - - -
Total governmental activities expenses 17,923,339$ 17,645,003$ 18,427,345$ 19,034,414$ 18,789,496$
Business-type activities:
Water and wastewater 6,958,202$ 7,491,321$ 7,420,051$ 8,081,456$ 7,745,232$
Sanitation 3,160,647 3,376,614 3,958,515 4,316,548 4,594,016 Stormwater utility 568,984 826,121 507,555 494,179 541,495
Savannah Bluff Lock and Dam 24,000 24,000 24,000 24,000 24,000
Total business-type activities expenses 10,711,833$ 11,718,056$ 11,910,121$ 12,916,183$ 12,904,743$
Total primary government expenses 28,635,172$ 29,363,059$ 30,337,466$ 31,950,597$ 31,694,239$
Program Revenues
Governmental activities:
Charges for services:
General government 4,711,699$ 4,892,172$ 5,272,149$ 5,621,613$ 5,885,657$ Public safety 1,092,699 1,055,155 1,109,022 1,195,544 1,060,102
Public Works 46,970 60,381 62,664 65,907 78,018
Parks, recreation, and tourism 1,019,548 1,058,841 1,090,469 1,162,485 1,260,024 Operating grants and contributions 801,328 811,914 1,433,764 872,652 791,316
Capital grants and contributions 1,619,796 1,357,083 468,934 - -
Total governmental activities program revenues 9,292,040$ 9,235,546$ 9,437,002$ 8,918,201$ 9,075,117$
Business-type activities:
Charges for services:
Water and wastewater 8,388,987$ 8,564,524$ 8,800,125$ 8,664,457$ 9,155,898$ Sanitation 3,388,623 3,647,518 4,163,934 4,168,309 4,246,959 Stormwater utility 573,660 575,233 584,566 746,814 759,131
Operating grants and contributions - - 264,747 2,449 -
Capital grants and contributions 206,463 220,936 618,036 396,837 124,408 Total business-type activities program revenues 12,557,733$ 13,008,211$ 14,431,408$ 13,978,866$ 14,286,396$
Total primary government program revenues 21,849,773$ 22,243,757$ 23,868,410$ 22,897,067$ 23,361,513$
Net (expense) / revenue
Governmental activities (8,631,299)$ (8,409,457)$ (8,990,343)$ (10,116,213)$ (9,714,379)$ Business-type activities 1,845,900 1,290,155 2,521,287 1,062,683 1,381,653 Total primary government net expense (6,785,399)$ (7,119,302)$ (6,469,056)$ (9,053,530)$ (8,332,726)$
General Revenues and Other Changes in Net Position
Governmental activities:
Ad valorem property taxes 6,780,783$ 6,858,860$ 6,993,684$ 6,874,139$ 7,162,650$
Capital projects sales taxes 1,861,677 1,180,511 2,733,613 2,828,301 2,891,291 Local hospitality and accommodations taxes 584,227 622,971 661,531 713,903 764,056
Interest on investments 77,894 70,768 69,440 89,791 192,906
Gain(loss) on disposal of capital assets - - - (3,311) - Miscellaneous 590,882 631,662 696,936 886,062 568,970 Transfers 542,241 657,011 378,848 514,893 540,943
Total governmental activities 10,437,704$ 10,021,783$ 11,534,052$ 11,903,778$ 12,120,816$
Business-type activities:
Interest on investments 56,203$ 48,450$ 50,735$ 69,410$ 120,990$
Gain(loss) on disposal of capital assets -$ -$ - 46,107 (12,606)
Miscellaneous 358,764 561,746 644,361 584,902 557,130 Transfers (542,241) (657,011) (378,848) (514,893) (540,943)
Total business-type activities (127,274)$ (46,815)$ 316,248$ 185,526$ 124,571$
Total primary government 10,310,430$ 9,974,968$ 11,850,300$ 12,089,304$ 12,245,387$
Change in Net PositionGovernmental activities 1,806,405$ 1,612,326$ 2,543,709$ 1,787,565$ 2,406,437$
Business-type activities 1,718,626 1,243,340 2,837,535 1,248,209 1,506,224
Total primary government 3,525,031$ 2,855,666$ 5,381,244$ 3,035,774$ 3,912,661$
(continued)
(accrual basis of accounting)
Year Ending December 31
City of North Augusta, South Carolina
Changes in Net Position
Last Ten Fiscal Years
89
2017 2018 2019 2020 2021
ExpensesGovernmental activities:
General government 7,474,923$ 8,855,053$ 11,607,797$ 7,870,452$ 8,020,594$
Public safety 8,736,202 9,253,259 9,079,791 9,539,596 8,713,621 Public works 2,695,126 2,736,631 2,936,592 2,924,751 2,952,922
Parks, recreation, and tourism 4,913,582 3,785,041 4,212,339 3,371,009 4,197,184
Debt service - interest and fees 338,132 1,568 276,699 3,447,465 3,347,376
Loss on debt defeasance - - - - - Total governmental activities expenses 24,157,965$ 24,631,552$ 28,113,218$ 27,153,273$ 27,231,697$
Business-type activities: Water and wastewater 8,359,555$ 8,896,535$ 10,077,290$ 10,410,462$ 10,164,461$ Sanitation 4,536,142 4,624,936 4,733,146 4,626,296 4,479,166
Stormwater utility 638,634 661,987 789,312 840,358 883,357
Savannah Bluff Lock and Dam utility 24,000 23,999 24,000 192,673 133,970 Total business-type activities expenses 13,558,331$ 14,207,457$ 15,623,748$ 16,069,789$ 15,660,954$
Total primary government expenses 37,716,296$ 38,839,009$ 43,736,966$ 43,223,062$ 42,892,651$
Program Revenues
Governmental activities: Charges for services: General government 6,229,497$ 6,361,953$ 6,256,452$ 6,420,926$ 6,868,596$
Public safety 1,041,202 892,138 1,044,181 911,851 895,682
Public Works 158,147 167,961 108,726 85,435 93,392 Parks, recreation, and tourism 1,148,108 1,829,789 2,096,008 1,091,763 2,158,381
Operating grants and contributions 1,083,944 1,377,317 1,265,522 1,287,442 960,878
Capital grants and contributions 207,768 - 759,852 1,788,037 2,199,191
Total governmental activities program revenues 9,868,666$ 10,629,158$ 11,530,741$ 11,585,454$ 13,176,120$
Business-type activities:
Charges for services: Water and wastewater 9,459,054$ 9,746,927$ 10,151,786$ 10,666,159$ 11,159,227$
Sanitation 4,472,281 4,355,688 4,487,564 4,862,277 4,791,306
Stormwater utility 770,135 782,958 804,213 821,127 837,701
Operating grants and contributions 10,161 80,636 23,516 - - Capital grants and contributions 103,591 23,514 616,830 1,325,388 1,332,381
Total business-type activities program revenues 14,815,222$ 14,989,723$ 16,083,909$ 17,674,951$ 18,120,615$
Total primary government program revenues 24,683,888$ 25,618,881$ 27,614,650$ 29,260,405$ 31,296,735$
Net (expense) / revenueGovernmental activities (14,289,299)$ (14,002,394)$ (16,582,477)$ (15,567,819)$ (14,055,577)$
Business-type activities 1,256,891 782,266 460,161 1,605,162 2,459,661
Total primary government net expense (13,032,408)$ (13,220,128)$ (16,122,316)$ (13,962,657)$ (11,595,916)$
General Revenues and Other Changes in Net Position
Governmental activities:
Ad valorem property taxes 8,146,680$ 8,143,925$ 8,456,230$ 10,632,768$ 11,382,532$ Capital projects sales taxes 3,109,712 3,179,463 1,443,301 176,864 1,770,110
Local hospitality and accommodations taxes 790,749 1,718,195 2,017,221 1,830,571 2,385,218
Interest on investments 423,369 400,007 330,669 168,087 62,950 Gain(loss) on disposal of capital assets - 9,441 31,203 - -
Miscellaneous 3,659,328 1,024,414 1,005,944 1,095,995 1,329,329
Transfers 205,830 169,254 748,347 1,158,234 1,218,817
Total governmental activities 16,335,668$ 14,644,699$ 14,032,915$ 15,062,519$ 18,148,956$
Business-type activities:
Interest on investments 145,025$ 281,451$ 327,680$ 127,876$ 35,498$ Gain(loss) on disposal of capital assets 78,747 55,180 465 56,065 95,281
Miscellaneous 572,813 784,945 631,468 945,916 699,919
Transfers (205,830) (169,254) (748,347) (1,158,234) (1,218,817)
Total business-type activities 590,755$ 952,322$ 211,266$ (28,377)$ (388,119)$
Total primary government 16,926,423$ 15,597,021$ 14,244,181$ 15,034,142$ 17,760,837$
Change in Net Position
Governmental activities 2,046,369$ 642,305$ (2,549,562)$ (505,300)$ 4,093,379$
Business-type activities 1,847,646 1,734,588 671,427 1,576,785 2,071,542 Total primary government 3,894,015$ 2,376,893$ (1,878,135)$ 1,071,485$ 6,164,921$
(accrual basis of accounting)
Year Ending December 31
Changes in Net Position
Last Ten Fiscal Years
90
2012 2013 2014 2015 2016
General Fund
Reserved -$ -$ -$ -$ -$
Nonspendable 1,220 1,630 1,774 - -
Restricted 3,140 32,841 60,140 88,746 103,644
Committed 1,143,666 966,050 1,073,650 796,106 1,484,194
Unassigned - - - 2,375,000 2,475,000
Total General Fund 1,148,026$ 1,000,521$ 1,135,564$ 3,259,852$ 4,062,838$
All Other Governmental Funds
Reserved -$ -$ 6,746,666$ -$ -$
Restricted 6,725,864 7,065,591 2,114,554 5,790,157 7,512,545
Committed 1,197,249 1,534,983 2,489,051 2,184,346 2,950,803
Assigned 6,031,460 4,234,929 (188,988) 1,261,269 428,854
Unassigned - - - (69,258) -
Total all other governmental funds 13,954,573$ 12,835,503$ 11,161,283$ 9,166,514$ 10,892,202$
2017 2018 2019 2020 2021
General Fund
Nonspendable -$ -$ -$ -$ -$
Restricted 107,443 111,049 115,225 119,094 123,331
Committed 1,121,426 937,499 433,393 689,671 2,834,351
Unassigned 2,625,000 2,825,000 2,875,000 3,000,000 3,125,000
Total General Fund 3,853,869$ 3,873,548$ 3,423,618$ 3,808,765$ 6,082,682$
All Other Governmental Funds
Reserved -$ -$ -$ -$ -$
Restricted 23,636,811 10,531,546 9,423,502 17,733,705 19,663,081
Committed 3,731,713 2,669,258 2,737,813 2,980,435 3,398,961
Assigned 367,043 344,403 34,138 5,837 6,155
Unassigned - - - - -
Total all other governmental funds 27,735,567$ 13,545,207$ 12,195,453$ 20,719,977$ 23,068,197$
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)
91
2012 2013 2014 2015 2016
RevenuesAd valorem taxes 6,780,783$ 6,858,860$ 6,993,526$ 6,871,821$ 7,163,429$ Sales taxes 1,861,677 1,180,511 2,733,613 2,828,301 2,891,291
Local hospitality and accommodations taxes 584,227 622,971 661,531 713,903 764,056
Licenses and permits 4,711,699 4,892,172 5,272,149 5,621,613 5,885,657 Fines and forfeitures 1,029,126 991,039 1,044,648 1,138,891 996,799
Charges for services 1,083,121 1,122,957 1,154,843 1,285,045 1,401,345
Intergovernmental 1,198,831 1,141,759 1,187,485 872,652 791,316 Miscellaneous/interest earnings 675,603 697,191 747,304 977,123 781,035 Contributions 310,352 1,000 368,500 - -
4,352 - - - -
Total Revenues 18,239,771$ 17,508,460$ 20,163,599$ 20,309,349$ 20,674,928$
Expenditures
General government 2,984,191$ 3,302,811$ 3,704,832$ 4,028,393$ 3,712,733$ Public safety 6,502,974 6,058,506 6,630,196 7,833,279 7,990,705 Public works 1,176,290 1,157,668 1,344,015 1,487,619 1,394,286
Parks, recreation and tourism 3,154,330 3,141,942 3,391,470 3,647,665 4,022,934
Capital outlay 5,089,261 1,353,010 6,269,988 13,260,678 1,790,360 Debt service: Capital lease payments 1,024,075 4,117,682 747,764 897,952 929,907
Interest and fiscal charges 345,547 599,101 179,035 164,947 155,047
Principal Retirements - - - - - Bond Issuance Costs - - - - -
Total Expenditures 20,276,668$ 19,730,720$ 22,267,300$ 31,320,533$ 19,995,972$
Excess (deficiency) of revenues over (under) expenditures (2,036,897)$ (2,222,260)$ (2,103,701)$ (11,011,184)$ 678,956$
Other financing sources (uses)Proceeds on sale of capital assets -$ -$ 26,191$ -$ -$
Issuance of capital lease 515,417 309,494 312,249 887,594 880,655
Lease issuance cost - - - 9,738,217 428,120 Issuance of bonds - - - - - Transfers in 1,135,143 1,691,350 3,253,841 23,350,453 1,397,258
Transfers out (592,902) (1,045,159) (2,874,993) (22,835,560) (856,315)
Total other financing sources (uses) 1,057,658$ 955,685$ 717,288$ 11,140,704$ 1,849,718$
Net change in fund balance (979,239)$ (1,266,575)$ (1,386,413)$ 129,520$ 2,528,674$
Debt service as a percentage of noncapital expenditures 8.42% 24.83% 5.77% 6.42% 7.03%
2017 2018 2019 2020 2021Revenues
Ad valorem taxes 7,446,013$ 8,018,222$ 8,404,331$ 9,655,624$ 12,220,170$
Sales taxes 3,109,712 3,179,463 2,235,581 176,864 1,770,110 Local hospitality and accommodations taxes 790,749 1,718,195 2,017,221 1,830,571 2,385,218 Licenses and permits 6,229,497 6,361,953 6,256,452 6,420,926 6,868,596
Fines and forfeitures 978,626 834,200 1,006,060 872,727 854,434
Charges for services 1,291,321 1,974,016 2,226,219 1,216,322 2,293,021 Intergovernmental 4,179,592 1,899,080 1,569,665 1,452,465 1,168,208
Miscellaneous/interest earnings 1,000,276 1,068,804 1,111,636 1,157,925 1,237,945
Contributions - - - - - - - - - - Total Revenues 25,025,786$ 25,053,933$ 24,827,165$ 22,783,424$ 28,797,702$
ExpendituresGeneral government 3,406,445$ 4,759,360$ 5,751,630$ 5,503,855$ 5,849,145$
Public safety 7,921,809 8,379,644 8,932,323 8,058,484 7,986,178
Public works 1,515,323 1,594,271 1,728,518 1,520,495 1,553,477 Parks, recreation and tourism 4,085,589 3,043,122 3,278,290 2,500,187 3,353,253 Capital outlay 45,762,352 18,736,157 4,909,427 3,747,567 3,287,647
Debt service:
Capital lease payments 3,991,122 619,864 731,955 711,865 702,138 Interest and fiscal charges 1,712,670 3,217,755 3,217,751 3,273,533 3,325,369
Principal Retirements 12,573,657 (b)- - 650,000 739,968
Bond Issuance Costs 1,495,554 - - 88,947 - Total Expenditures 82,464,521$ 40,350,173$ 28,549,894$ 26,054,933$ 26,797,175$
Excess (deficiency) of revenues
over (under) expenditures (57,438,735)$ (15,296,240)$ (3,722,729)$ (3,271,509)$ 2,000,527$
Other financing sources (uses)
Proceeds on sale of capital assets -$ -$ -$ -$ -$
Issuance of capital lease 473,983 432,308 838,111 772,946 1,405,126 Issuance of bonds 71,882,320 (a)- - 10,250,000 (c)-
Insurance proceeds 178,260 - - - -
Transfers in 10,699,613 4,538,136 3,825,974 4,380,329 6,103,845 Transfers out (9,161,045) (3,844,885) (2,741,040) (3,222,095) (4,887,361) Total other financing sources (uses) 74,073,131$ 1,125,559$ 1,923,045$ 12,181,180$ 2,621,610$
Net change in fund balance 16,634,396$ (14,170,681)$ (1,799,684)$ 8,909,671$ 4,622,137$
Debt service as a percentage of
noncapital expenditures 54.73%(b)18.18%18.09%20.78%20.28%
(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.
(c) In March 2020, the City issued Series 2020 General Obligation Bonds in the amount of $10,250,000 for the purposes of defraying the costs incurred in connection
with all or a portion of designing, developing, and construction of a new Public Safety Headquarters and related fire apparatus.
Grant revenue
Year Ending December 31
(modified accrual basis of accounting)
Grant revenue
Year Ending December 31
City of North Augusta, South Carolina
Changes in Fund Balances, Governmental Funds
Last Ten Fiscal Years
92
Year Ended
December 31
(a) Tax
Year
Assessed
Value
Estimated Actual
Value
Assessed
Value
Estimated Actual
Value
Assessed
Value
Estimated Actual
Value Tax Rate
2012 (b) 2011 67,451,510$ 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
2020 2019 111,102,458 (c)2,267,143,519 33,204,209 251,368,769 144,306,667 2,518,512,288 73.50
2021 2020 114,076,665 (c)2,327,834,832 40,594,219 307,314,023 154,670,884 2,635,148,856 73.50
(b) Reassessment year, see Table VI
(c) Includes real, merchants inventory, merchants furniture and fixtures, personal property taxes, and special assessments for parcels in the City's
Municipal Improvement District (MID). Assessed value of real property less the special assessmesnts in the MID totals $100,762,532.
City of North Augusta, South Carolina
Assessed Value and Estimated Actual Value of Taxable Property
Last Ten Fiscal Years
Source: City of North Augusta tax records
TOTALREAL PROPERTY PERSONAL PROPERTY
(a) The City of North Augusta uses different tax years for real and personal property taxes because on April 30, 1980, the S.C. General Assembly passed a law that provided for
the billing and collection of personal property taxes on motor vehicles on a staggered basis according to expiration of the license tag.
93
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
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
2020 2019 73.50 -73.50 65.20 3.30 68.50 137.30 33.70 171.00 313.00
2021 2020 73.50 -73.50 64.30 3.00 67.30 134.20 33.70 167.90 308.70
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 $1,000 of assessed valuation
Tax Rate Limits: None
Taxes Due: Personal: In the month preceding tag renewal by the S.C. State Highway Department
Real and Merchants: April 30th
Personal: N/A--Taxes on personal property paid in advance
Taxes Delinquent: Real and Merchants: May 1st Discount Allowed: None
Penalties: Real and Merchants: 15%
Reassessment Years: Tax Years 2011, 2016, 2021
Uncollected taxes are turned over to the City Delinquent Tax Collector on June 1st, with authority to enforce collection by tax sale.
(a) Because of the change mandated by State law noted in the footnote of Table V, the City of North Augusta uses different tax years for real and personal property taxes.
City of North Augusta, South Carolina
Direct and Overlapping Property Tax Rates
Last Ten Fiscal Years
City of North Augusta
Overlapping Property Tax Rates
County of Aiken Aiken County School District
94
2021 2012
Taxpayer
Assessed
Valuation (b) Rank
Percentage of
Total Assessed
Valuation
Assessed
Valuation Rank
Percentage of
Total Assessed
Valuation
S. C. Electric & Gas Co. 3,291,010$ 1 2.13% 2,444,140$ 1 2.84%
Graybul Ironwood LLC 2,356,900 2 1.52%
Wal-Mart, Inc. 2,331,510 3 1.51% 1,219,960 4 1.42%
Allnex Industries, Inc. (a)2,132,490 4 1.38% 1,499,750 2 1.75%
Ackerman Greenstone North Augusta 1,995,647 5 1.29%
SUSO 3 Augusta, LP 1,126,870 6 0.73%
Halocarbon Chemicals, Inc. 1,119,760 7 0.72% 1,082,650 6 1.26%
SRP Federal Credit Union 1,086,060 8 0.70% 1,333,890 3 1.55%
CVS SC Distribution, Inc. 858,340 9 0.55% 628,490 9 0.73%
NHC Healthcare 712,260 10 0.46% 492,810 10 0.57%
North Augusta Plaza SC, LLC 1,087,920 5 1.27%
The Kroger Company 835,260 7 0.97%
Bell South Telecommunications 683,120 8 0.79%
TOTAL Taxable Assessed 17,010,847$ 11.00% 11,307,990$ 13.15%
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 2020 (tax year 2019) 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%.
(a) Allnex formerly Cytec Surface Specialties
(b) Does not include special assessments for parcels in the City's Municipal Improvement District (MID) that do not have a building
assessed valuation.
City of North Augusta, South Carolina
Principal Property Taxpayers
Current Year and Nine Years Ago
95
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
2012 (c) 2011 6,377,793$ 6,344,561$ 99.48% 13,531$ 6,358,092$ 99.69%
2013 2012 6,488,677 6,446,489 99.35%23,659 6,470,148 99.71%
2014 2013 6,597,073 6,565,216 99.52%15,519 6,580,735 99.75%
2015 2014 6,804,705 6,762,260 99.38%23,062 6,785,322 99.72%
2016 2015 7,026,901 6,992,988 99.52%12,644 7,005,632 99.70%
2017 (c) 2016 7,484,042 7,446,013 99.49%9,530 7,455,543 99.62%
2018 2017 8,064,166 8,018,222 99.43%16,598 8,034,820 99.64%
2019 2018 8,460,054 8,404,331 99.34%4,543 8,408,874 99.40%
2020 2019 10,606,540 9,655,624 91.03%889,764 10,545,388 99.42%
2021 2020 11,368,310 11,326,981 99.64%- 11,326,981 99.64%
(a) Includes real, merchants inventory, merchants furniture and fixtures, personal property taxes, and special assessments for parcels in the City's
Municipal Improvement District (MID).
(b) Because of the change by State law noted in the footnote of Table V, the City of North Augusta uses different tax years for
real and personal property taxes.
(c) Reassessment year, see Table VI
City of North Augusta, South Carolina
Property Tax Levies and Collections
Last Ten Fiscal Years
Total Collections to Date
Collected within the
Current Year of Tax Levy
Source: City of North Augusta tax records
96
Year Ended
December 31 Total Revenues Gross Sales
Total Number of
Licenses Issued
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 1,849
2015 5,302,353 1,098,056,589 1,877
2016 5,514,782 1,143,626,048 2,017
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
2020 5,905,981 1,294,322,660 2,302
2021 6,216,232 1,263,252,418 2,192
(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
97
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
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
2020 9,254 775 10,029 2,963 163 3,126 13,155
2021 9,324 786 10,110 2,942 166 3,108 13,218
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
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
2020 10,934 655 11,589 975 31 1,006 12,595
2021 11,228 666 11,894 988 33 1,021 12,915
Source: City of North Augusta utility billing records
City of North Augusta, South Carolina
Number of Utility Customers
Last Ten Fiscal Years
98
Water Customers
Customer Name Type of Business Rank Water Usage Rank Water Usage
Ambiopharm Pharmacutical Manufacturer 1 126,689,600
City of North Augusta Municipal Government 2 83,051,100 2 60,844,400
Halocarbon Chemicals, Inc.Manufacturing 3 61,625,800 3 56,466,100
Allnex Industries, Inc.Manufacturing 4 34,567,100 4 33,567,800 (a)
Breezy Hill Water & Sewer Authority Water District Provider 5 29,542,000 1 293,949,500
Crowne Plaza Hotel 6 22,180,200
Graybul Ironwood, LLC Apartments 7 11,010,100
Aiken County Schools School District 8 10,687,300 6 9,534,300
JARS at Breckenridge/Plaza Terrace Apartments 9 10,405,000 5 10,176,500
Lulu's Car Wash Automated Car Wash 10 7,833,800
Whispering Woods Apartments Apartments 7 6,038,500 (c)
Gentry's Mobile Home Park Mobile Home Park 8 5,855,500
CIG Plaza Place LLC Apartments 9 5,752,800 (b)
Pinecrest Apartments Apartments 10 4,406,100
Wastewater Customers
Customer Name Type of Business Rank Water Usage Rank Water Usage
Edgefield County Water & Sewer Authority Sewer District Provider 1 782,559,000 1 534,654,000
Ambiopharm Pharmacutical Manufacturer 2 97,832,303
Halocarbon Chemicals, Inc.Manufacturing 3 61,625,800 2 56,466,100
City of North Augusta Municipal Government 4 36,705,105
Allnex Industries, Inc.Manufacturing 5 33,890,412 3 18,248,551 (a)
Crowne Plaza Hotel 6 17,854,800
JARS at Breckenridge/Plaza Terrace Apartments 7 9,765,009 5 8,524,385
Graybul Ironwood, LLC Apartments 8 6,691,500
Lulu's Car Wash Automated Car Wash 9 6,334,800
CIG Plaza Place LLC Apartments 10 5,947,700 10 5,176,000 (b)
Aiken County Schools School District 4 8,868,302
National Healthcare Nursing Home Facility 6 6,960,000
Gentry's Mobile Home Park Mobile Home Park 7 5,855,500
Whispering Woods Apartments Apartments 8 5,507,994 (c)
Willow Wick Apartments Apartments 9 5,370,000
Note: Consumption is measured in gallons
(a) Allnex formerly Cytec Industries, Inc
(b) CIG Plaza Place LLC formerly Plaza Place Apartments, LLC (c) Whispering Woods Apartments formerly 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
2021 Annual Consumption 2012 Annual Consumption
2021 Annual Consumption 2012 Annual Consumption
99
Year Ended December 31
General
Obligation Bonds Revenue Bonds Municipal Center Lease Capital Leases Revenue Bonds Capital Leases PSA Capacity Payable
Total Primary
Government
Population
(Estimate) Per Capita
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 (a)
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 (b)
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 23,584 3,838.26
2020 10,250,000 68,825,000 - 1,412,082 18,091,831 1,287,722 - 99,866,635 23,845 4,188.16 (c)
2021 10,250,000 68,085,000 - 2,145,743 17,118,000 1,617,813 - 99,216,556 24,745 4,009.56 (d)
(c) 2020 General Obligation Bonds in the amount of $10,250,000 for the purposes of defraying the costs incurred in connection with all or a portion of designing, developing, and
and construction of a new Public Safety Headquarters and related fire apparatus. (d) 2021 refunding bond to refund 2014 A and 2015 A SC Drinking Water Revolving Loan Fund serial bonds for the City's raw water storage facility and new water treatment plant.
(a) 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.
Source: Population estimates provided by the City of North Augusta Planning and Development Department
(b) 2017 installment purchase revenue bond to construct and equip two parking decks, a stadium, conference facilities, a riverfront park, and certain roads, water, sewer, and related infrastructure (Series 2017B.) Also included is a $25,000 tax increment revenue bond.
City of North Augusta, South Carolina
Ratio of Outstanding Debt by Type
Last Ten Fiscal Years
Governmental Activities Business-Type Activities
100
Year Ended
December 31
General Obligation
Bonds (GOB)
Estimated Actual
Taxable Value (1)
of Property
% of Estimated
Actual Taxable
Value of Property Population (2)Per Capita
2012 3,393,638$ 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% 23,584 0.00
2020 10,250,000 (3)2,518,512,288 0.41% 23,845 429.86
2021 10,250,000 2,635,148,856 0.39% 24,745 414.23
Last Ten Fiscal Years
City of North Augusta, South Carolina
Ratios of General Bonded Debt Outstanding
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.
(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 provided by th
City of North Augusta Planning and Development Department.
(3) On November 6, 2018, a favorable bond referendum was held in the City of North Augusta authorixing to the City to issue
not exceeding $10,250,000 of general obligation bonds as part of a favorable Capital Projects Sales Tax referendum. These
bonds were issued in 2020 to construct and equip a public safety headquarters and bond payments will be made from
revenues collected from the capital projects sales tax.
101
Jurisdiction
Debt Outstanding @
December 31, 2021
Percent Applicable to City of
North Augusta
Amount Applicable to City of
North Augusta
Direct Debt
City of North Augusta * 80,480,743$ 100.00% 80,480,743$
Overlapping Debt
County of Aiken 39,986,910$ 20.49% 8,193,318$
Aiken County School District 210,025,000 20.49% 43,034,123
Sub-total - Overlapping Debt 250,011,910$ 20.49% 51,227,441$
Total 330,492,653$ 131,708,184$
Source: Aiken County and Aiken County School District
City of North Augusta, South Carolina
Direct and Overlapping Governmental Activities Debt
As of December 31, 2021
assessed value to Aiken County's total taxable assessed value.
* 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
102
2012 2013 2014 2015 2016
Debt Limit 6,875,400$ 6,994,935$ 7,111,789$ 7,335,620$ 7,575,153$
Total net debt applicable to limit 3,393,638 (a)- - - -
Legal debt margin 3,481,762$ 6,994,935$ 7,111,789$ 7,335,620$ 7,575,153$
Total net debt applicable to the limit
as a percentage of debt limit 49.36% 0.00% 0.00% 0.00% 0.00%
2017 2018 2019 2020 2021
Debt Limit 8,492,530$ 8,777,324$ 9,208,222$ 11,544,533$ 12,373,671$
Total net debt applicable to limit - - - - (b)-
Legal debt margin 8,492,530$ 8,777,324$ 9,208,222$ 11,544,533$ 12,373,671$
Total net debt applicable to the limit
as a percentage of debt limit 0.00% 0.00% 0.00% 0.00% 0.00%
(a) General Obligation Bonds issued in 2006. The 2006 General Obligation Bonds were defeased in December of 2013 removing the City's
financial obligation.
Legal Debt Margin Information
(b) On November 6, 2018, a favorable bond referendum was held in the City of North Augusta authorizing the City to issue not exceeding
$10,250,000 of general obligation bonds as part of a favorable Capital Projects Sales Tax referendum. These bonds were issued in 2020 to
construct and equip a public safety headquarters and bond payments will be made from revenues collected from the capital projects sales tax.
City of North Augusta, South Carolina
Fiscal Year
Fiscal Year
Last Ten Fiscal Years
103
Year Ended
December 31
Total Operating
Revenue
Total Operating
Expenses
Net Revenue
Available for Debt
Service
Revenue Bond
Principal
Revenue Bond
Interest
Total Debt
Service
Coverage
Ratio
2012 8,695,259$ 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
2020 11,212,356 8,454,040 2,758,316 1,252,348 200,928 1,453,276 1.90
2021 11,725,501 8,110,220 3,615,281 1,141,200 150,556 1,291,756 2.80
NOTE: Revenue bond coverage requirements are defined in the City's Revenue Bond Ordinance by the City's Bond Counsel, Pope Flynn LLC, Attorneys and
Counselors at Law, located in Columbia, South Carolina. Coverage is calculated by dividing the annual net revenue available for debt service by the average annual
requirements for principal and interest on all debt outstanding and payable from revenues of the system. Annual net revenue 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
104
Year Population
Personal Income
(thousands of dollars)
Per Capita Personal
Income Unemployment Rate
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%
2019 170,872 7,577,925 44,349 2.9%
2020 172,895 8,146,543 47,118 4.9%
Source: South Carolina Employment Security Commission
Year
1940 2,629 49,916
1950 3,659 53,137
1960 10,348 81,038
1970 12,883 91,023
1980 13,593 105,625
1990 15,684 120,940
2000 17,574 142,780
2010 21,348 160,099
2020 23,845 172,895
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 2021.
The United States Census Bureau has recorded the population of the City of North Augusta and County of Aiken in the decennia
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 2020 as follows.
105
% of Total % of Total
County County
Employer Location Employees Rank Employment Employees Rank Employment
Savannah River Site - see detail below (1)Out 11,651 1 16.28%12,836 1 19.18%
Aiken County Public Schools In / Out 3,297 2 4.61%3,379 2 5.05%
Bridgestone Americas (2)Out 1,964 3 2.74%930 5 1.39%
Kimberly-Clark Corp.Out 1,250 4 1.75%1,250 3 1.87%
Aiken Regional Medical Center Out 1,167 5 1.63%1,200 4 1.79%
Aiken County Government Out 1012 6 1.41%890 6 1.33%
Advanced Glassfiber Yarn Out 662 7 0.92%770 7 1.15%
Shaw Industries Out 630 8 0.88%600 9 0.90%
UPS Customhouse Brokerage Out 600 9 0.84%450 10 0.67%
City of Aiken Out 452 10 0.63%445 11 0.66%
Hubbell Power Systems Out 450 11 0.63%370 13 0.55%
ASCO Valve, Inc.Out 382 12 0.53%395 12 0.59%
The Calstar Group (a)Out 376 13 0.53%230 16 0.34%
Autoneum North America, Inc.Out 362 14 0.51%
Washington Safety Management Solutions Out 350 15 0.49%668 8 1.00%
PACTIV Corp.Out 331 16 0.46%213 18 0.32%
CVS Distribution Center In 285 17 0.40%
MTU America Inc.Out 264 18 0.37%259 14 0.39%
City of North Augusta In 249 19 0.35%211 19 0.32%
AmbioPharm, Inc In 243 20 0.34%
TTX/Hamburg Industries, Inc.In 250 15 0.37%
Glaxo Smith Kline Out 215 17 0.32%
Newman Technology SC, Inc Out 205 20 0.31%
Source: Economic Development Partnership, Various Employers, and South Carolina Employment Commission
Location: In city limits, Out of city limits
(1) SRNS/SRR, including subcontractors 9,787 (2) Bridgestone Americas Tire Operation 1,525
and temporary construction workers Bridgestone Offroad 439
Centerra 689 1,964
Parsons 435
Department of Energy 371
US Forestry Service 77
Savannah River Ecology Lab 125
Other Subcontractors 167
11,651
with less than 6% scattered in other areas.
County
# of
workers
Aiken County, South Carolina 5,511
Columbia County, Georgia 1,502
Richmond County, Georgia 1,140
Barnwell County, South Carolina 590
Edgefield County, South Carolina 357
Orangeburg County, South Carolina 102
Bamberg County, South Carolina 105
Lexington County, South Carolina 198
Other 282
9,787
(a) Formerly Carlisle Tire and Wheel Company
City of North Augusta, South Carolina
Principal Employers
Current Year and Nine Years Ago
Savannah River Nuclear Solutions/Savannah River Remediation Company employees live in 7 counties in South Carolina and 2 in Geor
2021 2012
106
Fund / Function / Department 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
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 3.0 3.0 3.0 3.0 1.0 1.0 1.0 2.0 2.0 2.0
Information Technology 0.0 0.0 0.0 0.0 1.5 (a) 1.5 1.5 4.0 (e) 4.0 4.0
Justice and Law 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0
Finance 4.5 4.5 5.5 5.5 4.0 4.0 4.0 4.0 4.0 4.0
Human Resources 0.0 0.0 0.0 0.0 2.0 (b) 2.0 2.0 2.0 2.0 2.0
Building Standards 3.5 3.5 3.5 4.5 4.5 4.5 4.5 4.5 4.5 4.5
Planning and Development 2.0 2.0 2.0 2.0 2.0 2.5 2.5 3.5 3.5 4.5
City Buildings 3.0 3.0 3.0 3.0 0.0 0.0 0.0 0.0 0.0 0.0
Property Maintenance 13.0 12.0 12.0 13.0 14.0 14.0 14.0 15.0 18.0 18.0
Public Safety 76.5 77.0 79.0 84.0 88.0 90.0 90.0 91.0 92.0 92.0
Public Works
Engineering 1.5 1.5 1.5 1.5 2.5 2.5 2.5 3.0 3.0 3.0
Streets & Drains 9.0 9.0 9.5 10.0 10.0 10.0 10.0 10.0 10.0 10.0
Parks, Recreation & Tourism
Recreation 5.0 5.0 4.0 5.0 5.0 4.0 4.0 4.0 4.0 7.0
Parks 4.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0 6.0
Community Center 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 1.0
Tourism 0.0 0.0 0.0 0.0 3.0 (f) 3.0 3.0 3.0 3.0 3.0
RVP Activities 6.0 6.0 6.0 6.0 6.0 7.0 7.0 7.0 7.0 5.0
Sub-total 135.0 135.5 138.0 146.5 152.5 155.0 155.0 162.0 166.0 168.0
Stormwater Fund
Stormwater 5.5 5.5 5.0 4.5 5.5 5.0 5.0 5.5 6.0 6.5
Sub-total 5.5 5.5 5.0 4.5 5.5 5.0 5.0 5.5 6.0 6.5
Riverfront Central Core Dev. Fund
Tourism 0.0 0.0 0.0 0.0 0.0 1.0 (d) 1.0 1.0 1.0 1.0
Sub-total 0.0 0.0 0.0 0.0 0.0 1.0 1.0 1.0 1.0 1.0
Sanitation Fund
Public Services
Information Technology 0.0 0.0 0.0 0.0 0.5 (c) 0.5 0.5 0.0 (e) 0.0 0.0
Sanitation 25.5 26.0 26.0 26.0 25.5 26.5 26.5 25.5 26.5 26.5
Material Recovery Center 7.5 7.5 8.5 8.5 8.5 8.5 8.5 8.5 8.5 8.5
Sub-total 33.0 33.5 34.5 34.5 34.5 35.5 35.5 34.0 35.0 35.0
Water & Wastewater Fund
Public Utilities
Information Technology 0.0 0.0 0.0 0.0 2.0 (a) 2.0 2.0 0.0 (e) 0.0 0.0
Utilities Finance 5.0 5.0 5.0 5.0 4.0 5.0 5.0 5.0 5.0 5.0
Utilities Administration 7.5 7.5 7.5 7.5 7.5 7.5 7.5 6.5 6.5 6.5
Water Operations 8.0 8.0 8.0 8.0 8.0 8.0 8.0 9.0 9.0 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 11.0 11.0 11.0
Sub-total 38.5 38.5 38.5 38.5 39.5 40.5 40.5 39.5 39.5 39.5
TOTAL 212.0 213.0 216.0 224.0 232.0 237.0 237.0 242.0 247.5 250.0
(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
City of North Augusta, South Carolina
Full-time Budget Equivalent Employees by Fund / Function / Department
Last Ten Fiscal Years
Fiscal Year
107
Function / Program 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
General Government
Size of City (square miles) 20.778 20.989 21.019 21.150 21.172 21.177 21.180 21.970 22.210 22.240
Annexations approved by City Council 7 5 5 - 211311 7
Building permits issued 604 622 660 648 668 689 703 779 755 846
Plumbing permits issued 291 340 310 373 381 296 358 389 420 496
Mechanical permits issued 345 391 433 417 520 455 494 561 551 612
Electrical & Solar permits issued 349 422 431 434 482 813 618 523 582 725
Business licenses issued 1,750 1,760 1,861 1,849 1,877 2,017 2,420 2,254 2,302 2,192
Police
Total calls for service 42,632 41,058 38,973 40,567 37,929 37,322 38,112 40,952 32,520 32,847
Criminal arrests 1,841 1,377 1,360 1,766 1,572 1,338 885 1,127 975 1,031
Incident reports (police action required) 3,557 3,377 3,399 3,627 3,888 3,966 3,797 3,356 3,035 3,105
Accident reports (collisions) 1,007 960 1,012 1,190 1,187 1,267 1,390 1,191 1,038 1,182
Traffic offenses (resulting in fine) 8,698 8,780 8,785 8,809 7,933 8,261 8,490 9,057 7,677 7,811
Drug offenses 136 203 157 177 210 372 214 154 147 153
Burglaries reported 218 117 108 97 132 93 94 76 59 67
Fire
Actual fire calls - Inside City 105 130 145 114 105 83 377 384 86 399
Actual fire calls - Outside City 21 17 12 7 31 32 56 26 36 21
Solid Waste
Garbage Refuse Collected (tons) - Residential 9,011 9,079 9,143 10,227 9,334 9,554 9,473 8,613 10,471 11,676
Garbage Refuse Collected (tons) - Commercial 6,874 4,992 5,037 4,723 5,502 6,082 5,647 6,108 6,412 6,362
Recyclables Collected (tons) 4,839 5,326 5,313 6,656 5,047 5,437 5,507 4,312 5,104 4,510
Property Maintenance
Tree trimming hours 287 254 275 1,378 3,516 1,338 2,050 1,202 2,073 1,963
Mowing hours 12,970 12,960 12,976 10,944 12,892 14,036 10,368 11,025 12,651 12,032
Planting hours 5,760 5,565 4,628 1,726 1,388 1,145 1,504 754 1,542 913
Streets and Drains
Pothole patching / asphalt tons 388 476 409 341 464 142 132 169 227 225
Curb, gutter & sidewalk repair / CY 290 285 378 472 292 400 294 402 441 414
Storm drain inlets cleaned 330 325 282 419 619 848 664 612 616 537
Street sweeping / miles 2,393 2,727 977 1,339 822 574 563 588 785 697
Parks and Recreation
Baseball / Number of Players 788 735 789 779 687 592 576 617 466 578
Youth Softball / Number of Players 262 248 259 238 234 240 221 211 133 207
Spring Soccer / Number of Players 540 528 511 484 532 585 580 567 262 578
Fall Soccer / Number of Players 534 474 473 552 552 493 540 540 470 578
Youth Basketball / Number of Players 600 549 680 640 615 652 577 647 492 701
Youth Football / Number of Players 309 310 281 280 239 219 267 269 202 313
Youth Cheerleading / Number of Participants 115 118 96 113 117 182 164 170 142 196
Youth Volleyball / Number of Participants 61 105 83 94 73 86 82 95 105 132
Water
New water taps 43 33 77 77 184 130 128 103 119 89
Water lines installed / L.F. 2,857 5,609 2,068 2,599 913 4,115 6,638 6,432 3,230 765
Water line leaks repaired 24 29 34 23 27 16 19 18 9 10
Average daily water pumped 4,365,000 3,853,000 3,569,000 3,576,000 3,750,000 3,380,000 3,462,000 4,083,000 3,629,000 3,879,000
Daily peak demand (gallons per day) 9,312,000 7,571,000 7,446,000 7,000,000 6,365,000 5,479,000 5,977,000 7,380,000 6,041,000 7,738,000
Peak day 7/8/2012 5/27/2013 8/22/2014 6/22/2015 7/29/2016 7/23/2017 9/7/2018 7/12/2019 7/22/2020 6/18/2021
Wastewater
New sewer taps 97 117 135 158 212 154 197 187 208 284
Wastewater lines installed / L.F. 160 1,379 508 1,970 1,259 6,208 8,423 5,077 2,360 765
Wastewater lines repaired / L.F. 65 33 62 680 556 252 16 47 32 34
Wastewater lines cleaned / L.F. 87,648 73,232 93,859 70,610 57,320 34,516 49,432 67,416 41,057 30,273
City of North Augusta, South Carolina
Operating Indicators by Function / Program
Last Ten Fiscal Years
Fiscal Year
Source: City of North Augusta's Year-end Departmental Reports
108
Function / Program 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Public Safety
Number of Stations 2 2 23333333
Number of Public Safety Officers 55 55 58 61 62 64 65 65 65 66
Number of Volunteer Firemen 20 20 20 20 20 25 20 20 20 20
Insurance Rating (ISO)Class 3 Class 3 Class 3 Class 2 Class 2 Class 2 Class 2 Class 2 Class 2 Class 2
Signalized Intersections 30 30 30 31 31 32 32 32 32 34
Number of Fire Hydrants
Inside City 802 805 809 812 814 816 848 848 852 853
Outside City 149 149 149 149 149 149 149 149 150 150
Public Works
Miles of Streets 140.09 140.85 141.37 141.91 143.77 144.2 144.9 145.75 147.75 149.86
Street Lights 1,789 1,789 1,800 1,817 1,841 1,859 1,980 2,000 2,040 2,075
Parks, Recreation & Tourism
Number of Parks 22 22 22 22 22 22 22 22 23 23
Park Acreage 550 550 550 550 550 550 550 550 527 527
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 99999999
Baseball / Softball Diamonds 10 10 10 10 10 10 10 10 10 10
Football / Lions Field 2 2 22222222
Soccer Fields 6 6 66666666
Tennis Courts 11 11 11 11 11 11 11 11 15 15
Multi-purpose Fields 3 3 33333333
Community Center 1 1 11111111
Activities Center 1 1 11111111
Water
Miles of Water Lines 195.27 196.01 196.08 228.68 229.07 229.84 231.09 232.3 232.74 232.88
Maximum Pumping Capacity 14,000,000 14,000,000 12,000,000 12,000,000 12,000,000 12,000,000 12,000,000 12,000,000 12,000,000 12,000,000
(gallons per day)
Sewer
Miles of Wastewater Lines 228.03 228.54 228.57 229.20 229.57 230.74 232 232.96 233.4 235.71
Stormwater
Miles of Storm Sewer 59.29 59.79 60.37 60.73 68.01 68.47 69.21 70.04 71.66 73.43
(a) In 2014, SCDHEC reduced the City's maximum pumping capacity to 12,000,000 GPD
Source: City of North Augusta's Year-end Departme
City of North Augusta, South Carolina
Capital Asset Statistics by Function / Program
Last Ten Fiscal Years
Fiscal Year
109
Meter Size Minimum Usage Debt Service O & M Total Debt Service O & M Total
5/8 and 3/4 Inch 3,000 gallons $3.90 $8.48 $12.38 $5.85 $18.91 $24.761 Inch 6,000 gallons 3.90 13.44 17.34 5.85 28.83 34.68
1 1/2 Inch 9,000 gallons 3.90 18.08 21.98 5.85 38.11 43.96
2 Inch 15,000 gallons 3.90 27.47 31.37 5.85 56.89 62.74
3 Inch 24,000 gallons 3.90 41.69 45.59 5.85 85.33 91.18 4 Inch 30,000 gallons 3.90 51.17 55.07 5.85 104.29 110.14
6 Inch 90,000 gallons 3.90 146.03 149.93 5.85 294.01 299.86
Volume of Consumption Debt Service O & M Total Debt Service O & M Total
Next 10,000 gallons $0.15 $1.10 $1.25 $0.30 $2.20 $2.50
Next 27,000 gallons 0.15 1.05 1.20 0.30 2.10 2.40
Next 160,000 gallons 0.15 1.00 1.15 0.30 2.00 2.30
All Additional Usage 0.15 0.90 1.05 0.30 1.80 2.10
Debt Service O & M Total Debt Service O & M Total
$2.53 $8.19 $10.72 $5.06 $9.19 $14.25
Volume of Consumption Debt Service O & M Total Debt Service O & M Total
$0.90 $2.40 $3.30 $1.52 $2.44 $3.96
All Additional Usage 0.73 1.93 2.66 0.73 1.93 2.66
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
Stormwater Management Service Charges in effect December 31, 2021
Residential Charge (Inside City only)$5.00 per month
Multi-family Charge (Inside City only) $3.75 per month per unit
Non-residential (Inside City only) Each non-residential developed property is classified and charged according to its primary developed use
Sanitation Service Charges in effect December 31, 2021
Residential (monthly)
Volume Charge (per cubic yard)
City of North Augusta, South Carolina
Enterprise Funds Rates and Charges
Rates / Charges in effect December 31, 2021
Base Rates
Base Rates / Outside City Limits
Volume Rates / Inside City Limits Volume Rates / Outside City Limits
Base Rates / Outside City Limits
Sewer Rate in effect December 31, 2021
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, 2021
Volume Rates / Outside City Limits
110
1/1/2013
1/1/2020
1/1/2018
1/1/2017
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
1/1/2015 Stormwater Management Service charge increased $1.00 per equivalent residential unit (ERU) per month.
Recycling Service Charge increased by $.60 inside and outside city limits
History of Sewer Rate Changes (past 10 years)
City of North Augusta, South Carolina
Enterprise Funds History of Rates and Charges
Last Ten Fiscal Years Through December 31, 2021
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)
O & M Volume Rate and Debt Service Rate increased in total by $0.15 per 1,000 gallons inside and outside city limits (PSA)
History of Sanitation and Recycling Charge Changes (past 10 years)
Commercial Rates increased by 3.5%
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 $.75 per month inside city limits and $1.50 per month outside city limits
Residential Service Charge increased by $.60 inside city limits and $.90 outside city limits
Stormwater Management Service Charge Changes (past 10 years)
111
COMPLIANCE SECTION
508 HAMPTON STREET, 1ST FLOOR • COLUMBIA, SC 29201 • 803-799-5810 • FAX 803-799-5554 • www.mjcpa.com
MEMBERS OF THE AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS
INDEPENDENT AUDITOR’S REPORT 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
The Honorable Mayor and Members
of the City Council
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, 2021, and the related notes to the financial statements, and the
budgetary comparison for the General Fund, which collectively comprise the City’s basic financial statements and
have issued our report thereon dated May 17, 2022.
Report on 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) as a basis for designing audit procedures that are appropriate in the
circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of
expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion
on the effectiveness of the City’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management or
employees, in the normal course of performing their assigned functions, to prevent, or detect and correct,
misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal
control such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will
not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a
combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to
merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and
was not designed to identify all deficiencies in internal control that might be material weaknesses or significant
deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we
consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that have
not been identified.
112
Report on 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 financial statements.
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.
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
results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on
compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards
in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any
other purpose.
Columbia, South Carolina
May 17, 2022
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CITY OF NORTH AUGUSTA, SOUTH CAROLINA
SCHEDULE OF FINDINGS AND RESPONSES
FOR THE YEAR ENDED DECEMBER 31, 2021
SECTION I
SUMMARY OF AUDIT RESULTS
Financial Statements
Type of report the auditor issued on whether the financial
statements audited were prepared in accordance with GAAP: Unmodified
Internal control over financial reporting:
Material weaknesses identified? Yes X No
Significant deficiencies identified? Yes X No
Noncompliance material to financial statements noted? Yes X No
Federal Awards
There was not an audit of major federal award programs as of December 31, 2021, due to the total amount
expended being less than $750,000.
SECTION II
FINANCIAL STATEMENT FINDINGS AND RESPONSES
None reported.
SECTION III
FEDERAL AWARD FINDINGS AND QUESTIONED COSTS
Not applicable.
SECTION IV
PRIOR YEAR FINDINGS AND RESPONSES
None reported.
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