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12.31.2022 Annual Comprehensive Financial ReportCITY OF NORTH AUGUSTA SOUTH CAROLINA ANNUAL COMPREHENSIVE FINANCIAL REPORT YEAR ENDED DECEMBER 31, 2022 Prepared by Department of Finance Lynda R Williamson, Director of Finance CITY OF NORTH AUGUSTA, SOUTH CAROLINA ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2022 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 - 61 Required Supplementary Information: Schedule of Proportionate Share of the Net Pension Liability – South Carolina Retirement System ..................................................................................................... 62 Schedule of Proportionate Share of the Net Pension Liability – Police Officers Retirement System ..................................................................................................... 62 Schedule of Contributions – South Carolina Retirement System ......................................................................................... 63 and 64 Schedule of Contributions – Police Officers Retirement System ......................................................................................... 63 and 64 CITY OF NORTH AUGUSTA, SOUTH CAROLINA ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2022 TABLE OF CONTENTS (CONTINUED) Page Number FINANCIAL SECTION (CONTINUED) Other Supplementary Information: Combining and Individual Nonmajor Fund Financial Statements: General Fund – Schedule of Revenues and Expenditures Compared with Budget ..................................................................................................................................... 65 - 73 Combining Balance Sheet – Nonmajor Governmental Funds .............................................................. 74 Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Nonmajor Governmental Funds ...................................................................................... 75 Combining Balance Sheet – Nonmajor Special Revenue Funds ......................................................... 76 Combining Balance Sheet – Nonmajor Capital Projects Funds ........................................................... 77 Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Nonmajor Special Revenue Funds .................................................................................. 78 Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Nonmajor Capital Projects Funds ................................................................................... 79 Enterprise Fund – Water and Wastewater System Fund: Schedule of Revenues and Expenses – Budget and Actual – GAAP Basis ................................... 80 Schedule of Operating Expenses – Budget and Actual – GAAP Basis ............................... 81 and 82 Enterprise Fund – Stormwater Utility Fund: Schedule of Revenues and Expenses – Budget and Actual – GAAP Basis ................................... 83 Schedule of Operating Expenses – Budget and Actual – GAAP Basis ........................................... 84 Enterprise Fund – Sanitation Services Fund: Schedule of Operating Revenues and Expenses – Budget and Actual – GAAP Basis ................. 85 Schedule of Operating Expenses – Budget and Actual – GAAP Basis ........................................... 86 Supplementary Information Required by the State of South Carolina: Uniform Schedule of Court Fines, Assessments and Surcharges (per ACT 96) .................... 87 and 88 STATISTICAL SECTION Financial Trends Information: Net Position by Component ..................................................................................................................... 89 Changes in Net Position ............................................................................................................... 90 and 91 Fund Balances, Governmental Funds ..................................................................................................... 92 Changes in Fund Balances, Governmental Funds ................................................................................ 93 Revenue Capacity Information: Assessed Value and Estimated Actual Value of Taxable Property ...................................................... 94 Direct and Overlapping Property Tax Rates ........................................................................................... 95 Principal Property Taxpayers .................................................................................................................. 96 Property Tax Levies and Collections ...................................................................................................... 97 Business Licenses/Franchise Fees ......................................................................................................... 98 Number of Utility Customers ................................................................................................................... 99 Ten Largest Water and Wastewater Customers .................................................................................. 100 CITY OF NORTH AUGUSTA, SOUTH CAROLINA ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2022 TABLE OF CONTENTS (CONTINUED) Page Number STATISTICAL SECTION (CONTINUED) Debt Capacity Information: Ratio of Outstanding Debt by Type ........................................................................................................... 101 Ratios of General Bonded Debt Outstanding ........................................................................................... 102 Direct and Overlapping Governmental Activities Debt ........................................................................... 103 Legal Debt Margin Information .................................................................................................................. 104 Pledged Revenue Bond Coverage ............................................................................................................. 105 Demographic and Economic Indicators: Economic Statistics .................................................................................................................................... 106 Principal Employers .................................................................................................................................... 107 Full-time Budget Equivalent Employees by Fund/Function/Department .............................................. 108 Operating Information: Operating Indicators by Function/Program .............................................................................................. 109 Capital Asset Statistics by Function/Program ......................................................................................... 110 Enterprise Fund Rates and Charges ......................................................................................................... 111 Enterprise Funds History of Rates and Charges ..................................................................................... 112 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 ....................... 113 and 114 Independent Auditor’s Report on Compliance for Each Major Program and on Internal Control over Compliance Required by the Uniform Guidance ........................... 115 - 117 Schedule of Expenses of Federal Awards ..................................................................................................... 118 Notes to the Schedule of Expenses of Federal Awards ............................................................................... 119 Schedule of Findings and Questioned Costs .................................................................................. 120 and 121 INTRODUCTORY SECTION North Augusta Sot Hi Carolina's Rivet-front i 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). ii 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, 2022 Present Allocation (MGD) Present Use (MGD) City of North Augusta 8.672 5.34616 City of Aiken 7.134 5.03951 Aiken County .380 0.00000 Allnex,Inc .900 0.05688 Bath .070 0.02564 Breezy Hill 1.882 0.60134 Beech Island Water & Sewer .060 0.00685 Clearwater .050 0.04048 Langley .060 0.02723 Valley Public Service Authority .592 0.42884 PACTIV Advanced Packaging Solutions .050 0.01472 Kimberly Clark .150 0.04967 Uncommitted .000 0.00000 Total 20.000 11.63732 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 iii 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. 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 25,258 for 2022. During the past ten years, Aiken County’s unemployment rate has fluctuated from 8.4 percent in 2012, decreasing to 4.9 percent during 2020, and then decreasing to 3.2 percent for 2022. The 2022 rate is the same as South Carolina’s 2022 unemployment rate of 3.2 percent and less than the 2022 national rate of 3.6 percent. The increases in unemployment rates since 2019 (2.8 percent) 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 $72,202, Aiken County’s is $57,572, and the State’s is $58,234. Housing prices in the City continue to remain strong. Per the USCB, the median price of a single-family home in the City is $180,000. 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 fourth season in the 4,500 seat SRP Park during 2022 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 parking decks, the public infrastructure and contribution of funds toward the conference center, iv 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 and identified for American Rescue Plan projects. The Local Hospitality and Accommodations taxes levied by the City during 1998 have continued as a positive revenue stream in 2022 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 second tranche of funding in Coronavirus State and Local Fiscal Recovery Funds in excess of $5,000,000. 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 12/31/2022 is $2,174,623. Awards and Acknowledgements The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of North Augusta for its annual comprehensive financial report (ACFR) for the fiscal year ended December 31, 2021. This was the fortieth consecutive year that the government has achieved this prestigious award. In v vi North Augusta vy 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, 2021 Executive Director/CEO vii Organizational Chart - 2022 Citizens of North Augusta Mayor City Administrator City Council City Clerk City Attorney Finance Assistant City Administrator Public SafetyInformation Technology Human Resources Planning & Development PRT Engineering & Public Works Public Services Personnel Risk Management Network Services GIS Police Services Fire Suppression Accounting Purchasing Taxes Business Licenses Utility Billing Criminal Investigation Court Services Animal Control Title VI Planning Zoning Code Enforcement Parks Recreation Tourism Engineering Building Standards Streets & Drains Stormwater Management Utility Operators Sanitation Services Property Maintenance Water Production Municipal Judges Economic Development Advisory Boards, Commissions, & Committees viii CITY OF NORTH AUGUSTA, SOUTH CAROLINA LIST OF ELECTED AND APPOINTED OFFICIALS December 31, 2022 ELECTED OFFICIALS Briton S. Williams, Mayor J. Robert Brooks, Councilman, Mayor Pro TemporePat 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 Jamie Paul, City Clerk Richard L. Meyer, Director of Parks, Recreation & Tourism Thomas L. Paradise, Director of Planning & Development James E. Sutton, Director of Public Services John C. Thomas, Director of Public Safety Lynda R. Williamson, Director of Finance Thomas C. Zeaser, Director of Engineering & Public Works ix FINANCIAL SECTION North ` Au g usta \ ticn tl Carolina'sliners FiiucrjrO u 508 HAMPTON STREET, 1ST FLOOR • COLUMBIA, SOUTH CAROLINA 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, 2022, 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, 2022, and the respective changes in financial position, and, where applicable, cash flows thereof, and the budgetary comparison 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. Change in Accounting Principle As discussed in Notes 1 and 4 to the financial statements, the City adopted new accounting guidance, GASB Statement No. 87, Leases, as of January 1, 2022. Our opinions are not modified with respect to this matter. 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. 1 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. 2 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 GAAS, 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, the General Fund budget and actual schedule, the enterprise fund budget and actual schedules, and the schedule of expenditures of federal awards, as required by Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), 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, the schedule of expenditures of federal awards, 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. 3 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 24, 2023, 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 24, 2023 4 North Augusta vy South Carolina 's Riverfront MANAGEMENT’S DISCUSSION AND ANALYSIS As management of the City of North Augusta (the “City”), we offer readers of the City’s financial statements this narrative overview and analysis of the financial activities of the City for the fiscal year ended December 31, 2022. 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 $148,584,430 (net position). Of this amount, ($32,611), 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 $7,494,816.  At the close of the current fiscal year, the City’s governmental funds reported combined fund balances of $30,462,854 an increase of $1,311,975 in comparison with the prior year. The residential growth in the City has led to higher property tax revenue. The City experienced an increase of large athletic tournaments, participation in recreation sports programs, and rentals of City facilities for other events during 2022. Both residential and commercial construction activity continues to rise in the City, resulting in increases to both business license and permit revenue streams. Approximately 11 percent of the governmental funds combined fund balance, $3,350,000, 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 $5,524,623 or 26.10 percent of total general fund expenditures.  The City’s outstanding debt decreased by ($3,645,850) 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. 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. 5 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 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. 6 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 $148,584,430 at the close of the most recent fiscal year. City of North Augusta's Net Position 2022 2021 2022 2021 2022 2021 Current and other assets 44,777,280$ 37,635,953$ 24,531,416$ 22,587,891$ 69,308,696$ 60,223,844$ Capital assets 134,995,396 134,843,278 81,289,731 81,240,116 216,285,127 216,083,394 Total Assets 179,772,676 172,479,231 105,821,147 103,828,007 285,593,823 276,307,238 Deferred outflows of resources 2,277,508 2,205,652 942,907 1,182,727 3,220,415 3,388,379 Long-term liabilities outstanding 95,136,422 95,413,586 26,767,131 27,717,045 121,903,553 123,130,631 Other liabilities outstanding 13,811,696 8,908,079 1,903,462 1,791,518 15,715,158 10,699,597 Total Liabilities 108,948,118 104,321,665 28,670,593 29,508,563 137,618,711 133,830,228 Deferred inflow of resources 2,019,106 3,489,930 591,991 1,285,845 2,611,097 4,775,775 Net position: Net investment in capital assets 56,753,022 54,204,071 63,792,267 62,504,303 120,545,289 116,708,374 Restricted 19,633,892 19,786,412 8,437,860 8,481,549 28,071,752 28,267,961 Unrestricted (5,303,954) (7,117,195) 5,271,343 3,230,474 (32,611) (3,886,721) Total Net Position 71,082,960$ 66,873,288$ 77,501,470$ 74,216,326$ 148,584,430$ 141,089,614$ Governmental Activities Business-type Activities Total By far, the largest portion of the City’s net position, 81.13 percent, reflects its investment in capital assets (e.g., land, land improvements, rights-of-way and easements, buildings, machinery and equipment, furniture and fixtures, vehicles, infrastructure, system improvements, PSA capital, and construction in progress), less any related outstanding debt to acquire those assets. The City uses these capital assets to provide a variety of services to its citizens. Accordingly, these assets are not available for future spending. Although the City’s investment in capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources since the capital assets themselves cannot be used to liquidate these liabilities. An additional portion of the City’s net position, 18.89 percent, represents resources that are subject to external restrictions on how they may be used. The remaining balance of ($32,611) may be used to meet the government’s ongoing obligations to citizens and creditors but is currently negative. 7 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 2022, governmental activities increased the City’s net position by $4,209,672. Governmental activities revenues increased $2,638,104 from 2021 to 2022 primarily due to an increase in operating grants as well as an increase in property taxes. Property taxes represent 40.08 percent of total revenues for governmental activities and increased $1,740,155 from 2021 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 31.30 percent of total revenues for governmental activities and are predominantly elastic in nature and vary with economic trends. Charges for services increased $234,338 related to continued increases in construction activity along with an increase in recreational programs participation and rentals. Other tax revenue increased 6.74 percent compared to the prior year as a result of an increase related to overnight travelers and restaurant dining in the post-COVID economy. Also, during 2022, governmental activities expenses increased by $2,333,398. General government expenses increased by $957,648, or 11.94 percent due to increase in capital outlay, fuel costs, and employee retention programs. Parks, Recreation, and Tourism expenses increased $257,703, or 6.14 percent, due to the increase of participation in other recreational programs and the related expenses. Public Works expenses increased slightly by $172,348. Public Safety expenses reflected an increase of 10.96 percent over the prior year due to an increased capital outlay costs and fuel costs. 8 City of North Augusta's Changes in Net Position 2022 2021 2022 2021 2022 2021 Revenues: Program revenues: Charges for services 10,250,389$ 10,016,051$ 15,782,207$ 16,788,234$ 26,032,596$ 26,804,285$ Operating grants and contributions 2,316,342 960,878 - - 2,316,342 960,878 Capital grants and contributions 639,030 2,199,191 1,093,373 1,332,381 1,732,403 3,531,572 General revenues: Property taxes 13,122,687 11,382,532 - - 13,122,687 11,382,532 Other taxes 4,435,258 4,155,328 - - 4,435,258 4,155,328 Other 1,980,657 1,392,279 2,671,650 830,698 4,652,307 2,222,977 Total Revenues 32,744,363 30,106,259 19,547,230 18,951,313 52,291,593 49,057,572 Expenses: General government 8,978,242 8,020,594 - - 8,978,242 8,020,594 Public safety 9,668,579 8,713,621 - - 9,668,579 8,713,621 Public works 3,125,270 2,952,922 - - 3,125,270 2,952,922 Parks, recreation, and tourism 4,454,887 4,197,184 - - 4,454,887 4,197,184 Interest and fiscal charges on debt service 3,338,117 3,347,376 - - 3,338,117 3,347,376 Water and wastewater - - 10,195,996 10,164,461 10,195,996 10,164,461 Sanitation - - 4,054,330 4,479,166 4,054,330 4,479,166 Stormwater - - 955,356 883,357 955,356 883,357 Savannah Bluff Lock and Dam - - 26,000 133,970 26,000 133,970 Total Expenses 29,565,095 27,231,697 15,231,682 15,660,954 44,796,777 42,892,651 Increase (decrease) in net position before transfers 3,179,268 2,874,562 4,315,548 3,290,359 7,494,816 6,164,921 Transfers 1,030,404 1,218,817 (1,030,404) (1,218,817) - - Increase in net position 4,209,672 4,093,379 3,285,144 2,071,542 7,494,816 6,164,921 Net position-beginning of year 66,873,288 62,779,909 74,216,326 72,144,784 141,089,614 134,924,693 Net position-end of year 71,082,960$ 66,873,288$ 77,501,470$ 74,216,326$ 148,584,430$ 141,089,614$ Governmental Activities Business-type Activities Total Business-type Activities Business-type activities increased the City’s net position by $3,285,144. Water, wastewater, and stormwater rates remained unchanged. Water sales decreased (6.9) percent over the prior year due to the sale of 29,542,000 gallons to a service district customer in 2021. Water sales were over budget in 2022 by approximately $100,802 related to an increase in usage and customer base. Sewer sales decreased approximately ($294,385), (4.12) percent, over the prior year related to a malfunction in the water meter reading system corrected in 2022. Sanitation rates had a monthly increase in 2022 of 17 cents for residential inside customers and 26 cents for residential customers outside City limits. Commercial customers also had a rate increase 36 cents in per cubic yard rates. Fees for sanitation services increased approximately $210,000 related to growth in the City. Recycling fees decreased approximately ($998,000) from the prior year. Commercial tipping tons came in under budget by approximately ($1,180,000) due to the amount of waste material being processed by the City’s Materials Recovery Facility (MRF) was less than anticipated during the year due to the rebuilding of the facility from a fire at the end of 2021. Stormwater fees increased 2.7 percent as anticipated due to additional customers. 9 Expenses for the Water and Wastewater System increased by $160,275 from the prior year primarily due to increased fuel costs and equipment replacements for the existing water system. In 2022, the expenses for the Sanitation Services Fund showed a decrease from the prior year of ($390,871) due to decreased costs related to the commercial landfill use with the reduction of commercial tipping tons. Increased expenses in the Stormwater Utility Fund were $70,834 due to increased depreciation of capital assets. A total of $26,000 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, 2022, the City’s governmental funds reported combined fund balances of $30,462,854 an increase of $1,311,975 from the prior year. The majority of this increase is attributable to the growth in the City as both residential and commercial construction continued to increase throughout 2022. Approximately 11 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 $225,000 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. 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 $3,350,000, while total fund balance was $5,651,595. As a measure of the General Fund’s liquidity, it may be useful to compare unassigned and total fund balance to total fund expenditures. Unassigned fund balance represents 15.83 percent of total General Fund expenditures, while total fund balance represents 26.70 percent of those same expenditures. 10 The total fund balance of the City’s general fund increased by $431,387 during the current fiscal year. The most significant factor in this net increase is related to the increased property tax collected from the continued residential and commercial construction also have a positive impact on license and permit fees. 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. The second tranche was received in 2022 and the City has begun to allocate 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 a decrease of ($316,114) related to scheduled payment of debt service in 2022. The Capital Projects Fund had a fund balance of $4,826,438, an increase of 69.06 percent, due to the City’s operating budget policy that the audited unreserved fund balance of the general fund at year end shall be transferred to the capital projects fund. The Tax Increment Fund had an increase in fund balance of $75,303 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 44.80 percent from the prior year due to the increase in hospitality tax receipts and performance fees as a part of the COVID-19 economic recovery. Fund balance for the City’s nonmajor governmental funds totaled $4,551,981 for 2022, a decrease of ($1,199,893) 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 $5,271,343. Total growth in net position was $3,301,772. 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, 2022. Current property tax revenues exceeded budget by approximately $484,000 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 $826,000. 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 increased participation in recreational programs and large sports tournaments not projected during preparation of the budget. Miscellaneous revenues exceeded budget by approximately $290,000 reflective of receipt of unbudgeted other income items to include sales of 11 City assets. Intergovernmental revenues exceeded budget by approximately $254,000 due to an increase in the FILOT payments from Aiken County. 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 Safety and Parks, Recreation, and Tourism were primarily due to the purchase of vehicles and equipment with capital lease proceeds as well as the increase of large athletic tournaments. General Government and Public Works 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, 2022 amounts to $216,271,646 (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 $188,000. Additional information on the City’s capital assets can be found in Note 5 of this report. City of North Augusta's Capital Assets (net of depreciation)2022 2021 2022 2021 2022 2021 Land 10,330,391$ 10,330,391$ 824,058$ 824,058$ 11,154,449$ 11,154,449$ Land improvements 10,517,425 11,133,771 81,538 85,085 10,598,963 11,218,856 Right‐of‐way and easements 4,215,528 4,055,316 62,760 62,760 4,278,288 4,118,076 Buildings 84,158,097 86,707,183 18,118,298 18,803,391 102,276,395 105,510,574 Machinery and equipment 2,070,769 1,358,609 998,202 1,161,698 3,068,971 2,520,307 Furniture and fixtures 35,963 29,469 ‐ ‐ 35,963 29,469 Vehicles 3,215,996 3,070,044 1,440,130 1,412,801 4,656,126 4,482,845 Infrastructure 15,169,035 15,335,129 ‐ ‐ 15,169,035 15,335,129 System improvements ‐ ‐ 57,563,960 57,281,584 57,563,960 57,281,584 PSA capital ‐ ‐ 1,546,758 1,608,739 1,546,758 1,608,739 Construction in progress 5,282,192 2,823,366 640,546 ‐ 5,922,738 2,823,366 Total Capital Assets 134,995,396$ 134,843,278$ 81,276,250$ 81,240,116$ 216,271,646$ 216,083,394$ 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 $1,519,497.  Over $630,000 of water and sewer capital assets were added by developers and contributed to the City.  Continued construction on Public Safety Station I and continued design of Public Safety Headquarters totaling $2,467,523.  Purchase of various vehicles, machinery, and equipment for all departments totaling $2,237,766 with a portion financed from capital lease proceeds.  Water and sewer related infrastructure improvements totaling $108,621. Long-Term Debt. At the end of the current fiscal year, the City had total bonded debt outstanding of $92,000,000. The City’s debt represents bonds secured solely by specified revenue sources. City of North Augusta's Outstanding Debt 2022 2021 2022 2021 2022 2021 Revenue bonds 67,375,000$ 68,085,000$ 16,033,000$ 17,118,000$ 83,408,000$ 85,203,000$ General obligation bonds 8,592,000 10,250,000 ‐ ‐ 8,592,000 10,250,000 Capital leases 2,106,242 2,145,743 1,464,464 1,617,813 3,570,706 3,763,556 Total Outstanding Debt 78,073,242$ 80,480,743$ 17,497,464$ 18,735,813$ 95,570,706$ 99,216,556$ Governmental Activities Buisness‐type Activities Total The City’s total debt outstanding decreased by ($3,645,850) during the current fiscal year. This net decrease was attributed to due to scheduled debt service payments during 2022. 12 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 2.60 in 2022. 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 $3,570,706 in capital leases for equipment and vehicles and other long-term liabilities related to compensated absences as well as net pension liability totaled $26,332,847 (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 $14,118,749. 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 2022 has been a year of growth in the City. Several residential and commercial construction projects have started in the City and are attracting new citizens to North Augusta. The participation in recreational activities has increased along with an uptick in tourism. The following economic factors currently affect the City and were considered in developing the 2023 fiscal year budget:  During the past ten years, Aiken County’s unemployment rate has fluctuated from 8.4 percent in 2012, decreasing to 4.9 percent during 2020, and then decreasing to 3.2 percent for 2022.  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 2022 budget was 73.50 with 3.30 mills dedicated for the Capital Projects Fund. The millage rate included for preparing the 2023 budget is 75.50 with 3.80 mills dedicated for the Capital Projects Fund as part of an effort to advance its capital improvement program across all City departments.  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.  Rates to increase for both residential and commercial sanitation customers as costs to provide sanitation services continues to rise. Rates remain stable for other business type activities. All of these factors were considered in preparing the City’s general fund budget for the 2023 fiscal year. Amounts available for appropriation are $22.21 million, an increase of 7.15 percent, over the final prior fiscal year budget of $20.73 million. The City’s budgetary balance is expected to remain relatively stable during 2023 with opportunities to bring non-critical projects online. As for the City’s business type activities, we expect future results to remain stable in 2023. 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. 13 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. 14 Primary Government Governmental Business-type Activities Activities Total ASSETS Cash and cash equivalents $ 42,810,660 $ 13,928,676 $ 56,739,336 Taxes receivable 184,450 - 184,450 Accounts receivable, net of allowances 723,579 1,816,994 2,540,573 Due from other governments 96,500 - 96,500 Lease receivable 958,795 260,902 1,219,697 Restricted cash and cash equivalents 3,296 8,524,844 8,528,140 Capital assets: Non-depreciable 19,828,111 1,527,364 21,355,475 Depreciable, net of accumulated depreciation and amortization 115,167,285 79,762,367 194,929,652 Total assets 179,772,676 105,821,147 285,593,823 DEFERRED OUTFLOWS OF RESOURCES Pension 2,277,508 942,907 3,220,415 Total deferred outflows of resources 2,277,508 942,907 3,220,415 LIABILITIES Accounts payable 1,694,936 752,528 2,447,464 Retainage payable 169,132 - 169,132 Accrued liabilities 304,225 111,730 415,955 Unearned revenues 10,869,883 362,157 11,232,040 Accrued interest payable 580,669 - 580,669 Other liabilities 192,851 - 192,851 Payable from restricted resources: Accrued interest payable - 64,899 64,899 Customer deposits - 612,148 612,148 Long-term liabilities: Due within one year 3,860,726 2,018,480 5,879,206 Due in more than one year 75,042,789 15,827,459 90,870,248 Other long-term liabilities due in more than one year: Net pension liability 16,232,907 8,921,192 25,154,099 Total liabilities 108,948,118 28,670,593 137,618,711 DEFERRED INFLOWS OF RESOURCES Pension 1,104,937 591,991 1,696,928 Deferred lease receipts 914,169 - 914,169 Total deferred inflows of resources 2,019,106 591,991 2,611,097 NET POSITION Net investment in capital assets 56,753,022 63,792,267 120,545,289 Restricted for: Victims assistance 126,972 - 126,972 Public safety - fire division 143,855 - 143,855 Operations - Savannah Bluff Lock and Dam - 525,164 525,164 Capital projects 11,789,800 - 11,789,800 Special projects 7,573,265 - 7,573,265 Debt service - 7,912,696 7,912,696 Unrestricted (5,303,954) 5,271,343 (32,611) Total net position $ 71,082,960 $ 77,501,470 $ 148,584,430 CITY OF NORTH AUGUSTA, SOUTH CAROLINA STATEMENT OF NET POSITION DECEMBER 31, 2022 The accompanying notes are an integral part of these financial statements. 15 Program RevenuesOperating CapitalCharges forGrants andGrants and Governmental Business-typeFunctions/ProgramsExpensesServicesContributions Contributions ActivitiesActivitiesTotalPrimary government: Governmental activities: General government $ 8,978,242 $ 7,154,304 $ 2,227,010 $- $ 403,072 $- $ 403,072 Public safety 9,668,579 869,174 89,332 56,600 (8,653,473) - (8,653,473) Public works3,125,270 99,378 - 582,430 (2,443,462) - (2,443,462) Parks, recreation and tourism4,454,887 2,127,533 - - (2,327,354) - (2,327,354) Interest and fiscal charges on long-term debt3,338,117 - - - (3,338,117) - (3,338,117) Total governmental activities 29,565,095 10,250,389 2,316,342 639,030 (16,359,334) - (16,359,334) Business-type activities: Water and wastewater 10,195,996 10,844,304 - 635,703 - 1,284,011 1,284,011 Sanitation 4,063,126 4,003,815 - - - (59,311) (59,311) Stormwater utility955,356 860,588 - 531,170 - 436,402 436,402 Savannah Bluff Lock and Dam 26,000 - - - - (26,000) (26,000) Total business-type activities 15,240,478 15,708,707 - 1,166,873 - 1,635,102 1,635,102 Total primary government $ 44,805,573 $ 25,959,096 $ 2,316,342 $ 1,805,903 (16,359,334) 1,635,102 (14,724,232) General revenues:Ad valorem property taxes13,122,687 - 13,122,687 Capital projects sales tax 1,770,261 - 1,770,261 Local hospitality and accommodation tax2,664,997 - 2,664,997 Interest earned508,037 297,154 805,191 Gain on sale of capital assets- 7,860 7,860 Miscellaneous1,472,620 2,375,432 3,848,052 Transfers1,030,404 (1,030,404) - Total general revenues and transfers20,569,006 1,650,042 22,219,048 Change in net position4,209,672 3,285,144 7,494,816 Net position, beginning of year66,873,288 74,216,326 141,089,614 Net position, end of year $ 71,082,960 $ 77,501,470 $ 148,584,430 Net (Expenses) Revenues and Changes in Net PositionPrimary GovernmentCITY OF NORTH AUGUSTA, SOUTH CAROLINASTATEMENT OF ACTIVITIES FOR THE YEAR ENDED DECEMBER 31, 2022The accompanying notes are an integral part of these financial statements. 16 Capital Projects CapitalTax North AugustaNonmajorTotalGeneral Sales Tax IV Projects Increment Public Facilities ARPAGovernmental GovernmentalFund Fund Fund Fund Corporation Fund Fund Funds FundsASSETSCash and cash equivalents 6,972,303$ 11,346,182$ 4,829,849$ 434,734$ 3,434,572$ 10,967,841$ 4,825,179$ 42,810,660$ Taxes receivable, net of allowances 184,450 - - - - - - 184,450 Accounts receivable611,552 - - - 112,027 - - 723,579 Intergovernmental receivables 47,984 - - - - - 48,516 96,500 Lease receivable958,795 - - - - - - 958,795 Restricted cash and cash equivalents- 3,296 - - - - - 3,296 Total assets 8,775,084 11,349,478 4,829,849 434,734 3,546,599 10,967,841 4,873,695 44,777,280 LIABILITIES Accounts payable 1,510,097 14,419 3,411 - 16,024 - 150,985 1,694,936 Retainage payable - - - - - - 169,132 169,132 Accrued liabilities 302,628 - - - - - 1,597 304,225 Unearned revenues 34,514 - - - - 10,835,369 - 10,869,883 Other accrued liabilities 192,851 - - - - - - 192,851 Total liabilities 2,040,090 14,419 3,411 - 16,024 10,835,369 321,714 13,231,027 DEFERRED INFLOWS OF RESOURCES Unavailable revenue - property taxes 169,230 - - - - - - 169,230 Deferred lease receipts914,169 - - - - - - 914,169 Total deferred inflows of resources 1,083,399 - - - - - - 1,083,399 FUND BALANCESRestricted: Capital projects - 11,335,059 - - - - 454,741 11,789,800 Victim's assistance 126,972 - - - - - - 126,972 Public safety - fire division - - - - - - 143,855 143,855 Special projects - - - 434,734 3,530,575 132,472 3,475,484 7,573,265 Committed: Capital projects 2,174,623 - 4,723,697 - - - 538,536 7,436,856 Parks, recreation and tourism - - 12,994 - - - - 12,994 Housing and development - - 89,747 - - - - 89,747 Assigned: Capital projects - - - - - - 6,606 6,606 Unassigned 3,350,000 - - - - - (67,241) 3,282,759 Total fund balances5,651,595 11,335,059 4,826,438 434,734 3,530,575 132,472 4,551,981 30,462,854 Total liabilities, deferred inflows of resources, and fund balances 8,775,084$ 11,349,478$ 4,829,849$ 434,734$ 3,546,599$ 10,967,841$ 4,873,695$ 44,777,280$ CITY OF NORTH AUGUSTA, SOUTH CAROLINA BALANCE SHEET GOVERNMENTAL FUNDSDECEMBER 31, 2022The accompanying notes are an integral part of these financial statements. 17 Fund balances, end of year $ 30,462,854 134,995,396 169,230 2,277,508 (1,104,937) Compensated absences $ (830,273) Installment purchase revenue bonds (75,967,000) Financed purchases payable (2,106,242) Net pension liability (16,232,907) Total long-term liabilities (95,136,422) (580,669) Net position of governmental activities, end of year $ 71,082,960 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, 2022 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. 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. The accompanying notes are an integral part of these financial statements. 18 Capital Projects CapitalTax North AugustaNonmajorTotalGeneral Sales Tax IVProjectsIncrement Public FacilitiesARPAGovernmental GovernmentalFund Fund FundFund Corporation FundFundFundsFundsRevenues:Ad valorem property taxes9,158,393$ -$ 455,630$ 3,318,251$ -$ -$ -$ 12,932,274$ Sales taxes - 1,770,261 - - - - - 1,770,261 Local hospitality and accommodations taxes - - - - - - 2,664,997 2,664,997 Licenses and permits 7,154,304 - - - - - - 7,154,304 Intergovernmental 1,190,730 - 56,600 - 166,836 1,035,721 279,461 2,729,348 Charges for services 1,675,497 - - - 592,241 - - 2,267,738 Fines and forfeitures 828,347 - - - - - - 828,347 Interest earnings 100,626 172,642 38,614 4,345 12,286 130,827 48,697 508,037 Miscellaneous 1,295,155 - 9,156 - - - 1,473 1,305,784 Total revenues 21,403,052 1,942,903 560,000 3,322,596 771,363 1,166,548 2,994,628 32,161,090 Expenditures:Current: General government 6,012,839 - 536,387 - 314,942 - - 6,864,168 Public safety 8,697,191 - - - - - 234,756 8,931,947 Public works1,691,012 - - - - - 5,571 1,696,583 Parks, recreation and tourism 3,086,328 - 20,643 - - - 534,645 3,641,616 Capital outlay 1,036,586 488,907 1,353,897 - - - 2,109,474 4,988,864 Debt service:Principal retirement 595,144 1,658,000 220,935 - 710,000 - - 3,184,079 Interest and fiscal charges 44,359 112,110 9,964 - 3,182,407 - - 3,348,840 Total expenditures 21,163,459 2,259,017 2,141,826 - 4,207,349 - 2,884,446 32,656,097 Excess (deficiency) of revenues over (under) expenditures 239,593 (316,114) (1,581,826) 3,322,596 (3,435,986) 1,166,548 110,182 (495,007) Other financing sources (uses): Issuance of debt 776,578 - - - - - - 776,578 Transfers in 1,387,093 - 3,663,848 - 4,517,293 - - 9,568,234 Transfers out (2,834,351) - (110,390) (3,247,293) - (1,035,721) (1,310,075) (8,537,830) Total other financing sources (uses), net (670,680) - 3,553,458 (3,247,293) 4,517,293 (1,035,721) (1,310,075) 1,806,982 Net change in fund balances (431,087) (316,114) 1,971,632 75,303 1,081,307 130,827 (1,199,893) 1,311,975 Fund balances, beginning of year6,082,682 11,651,173 2,854,806 359,431 2,449,268 1,645 5,751,874 29,150,879 Fund balances, end of year5,651,595$ 11,335,059$ 4,826,438$ 434,734$ 3,530,575$ 132,472$ 4,551,981$ 30,462,854$ CITY OF NORTH AUGUSTA, SOUTH CAROLINASTATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS FOR THE YEAR ENDED DECEMBER 31, 2022The 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, 2022 Net change in fund balances - total governmental funds $ 1,311,975 Capital outlays $ 4,988,864 Depreciation expense (5,376,596) (387,732) 582,430 843 Issuance of debt $ (776,578) Repayment of the principal of long-term debt 3,184,079 2,407,501 Compensated absences $ (48,164) Accrued interest on long-term debt 10,723 Net pension liability 374,676 337,235 Change in net position of governmental activities $ 4,252,252 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. Amounts reported for governmental activities in the statement of activities are different 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. The net effect of various miscellaneous transactions involving capital assets (i.e. sales, trade-ins, transfers, and donations) is to increase net position. Revenues in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds. 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 $ 8,674,193 $ 8,674,193 $ 9,158,393 $ 484,200 Licenses and permits 6,328,000 6,328,000 7,154,304 826,304 Fines and forfeitures 1,120,000 1,120,000 828,347 (291,653) Charges for services 1,174,922 1,174,922 1,675,497 500,575 Intergovernmental 936,001 936,001 1,190,730 254,729 Interest earnings 37,100 37,100 100,626 63,526 Miscellaneous 1,068,513 1,068,513 1,295,155 226,642 Total revenues 19,338,729 19,338,729 21,403,052 2,064,323 Expenditures: Current: General government 6,478,868 6,478,868 6,012,839 466,029 Public safety 8,729,910 8,729,910 8,697,191 32,719 Public works 1,758,444 1,758,444 1,691,012 67,432 Parks, recreation and tourism 2,913,537 2,913,537 3,086,328 (172,791) Capital outlay 136,630 136,630 1,036,586 (899,956) Debt service: Principal retirement 664,074 664,074 595,144 68,930 Interest and fiscal charges 44,359 44,359 44,359 - Total expenditures 20,725,822 20,725,822 21,163,459 (437,637) Excess (deficiency) of revenues over (under) expenditures (1,387,093) (1,387,093) 239,593 1,626,686 Other financing sources (uses): Issuance of debt - - 776,578 776,578 Transfers in 1,387,093 1,387,093 1,387,093 - Transfers out - - (2,834,351) (2,834,351) Total other financing sources (uses), net 1,387,093 1,387,093 (670,680) (2,057,773) Net change in fund balances - - (431,087) (431,087) Fund balances, beginning of year 6,082,682 6,082,682 6,082,682 - Fund balances, end of year $ 6,082,682 $ 6,082,682 $ 5,651,595 $ (431,087) 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, 2022 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 $ 7,173,905 $ 5,251,619 $ 975,988 $ 527,164 $ 13,928,676 Accounts receivable, net of allowances 1,598,689 138,305 80,000 - 1,816,994 Inventory 260,902 - - - 260,902 Restricted cash and cash equivalents 8,524,844 - - - 8,524,844 Total current assets 17,558,340 5,389,924 1,055,988 527,164 24,531,416 NONCURRENT ASSETS Capital assets: Non-depreciable 797,254 545,134 184,976 - 1,527,364 Depreciable, net of accumulated depreciation and amortization 70,487,810 2,103,383 7,171,174 - 79,762,367 Total noncurrent assets 71,285,064 2,648,517 7,356,150 - 81,289,731 Total assets 88,843,404 8,038,441 8,412,138 527,164 105,821,147 DEFERRED OUTFLOWS OF RESOURCES Pensions 467,799 404,377 70,731 - 942,907 Total deferred outflows of resources 467,799 404,377 70,731 - 942,907 LIABILITIES CURRENT LIABILITIES Accounts payable 446,397 295,615 8,516 2,000 752,528 Accrued liabilities 56,486 43,188 12,056 - 111,730 Customer deposits 612,148 - - - 612,148 Accrued vacation 177,706 131,067 39,702 - 348,475 Accrued interest payable 54,261 9,115 1,523 - 64,899 Current portion of revenue bonds payable 1,104,000 - - - 1,104,000 Current portion of financed purchases payable 208,716 318,905 38,384 - 566,005 Total current liabilities 2,659,714 797,890 100,181 2,000 3,559,785 NONCURRENT LIABILITIES Revenue bonds payable, net of current portion 14,929,000 - - - 14,929,000 Financed purchases payable, net of current portion 275,224 542,893 80,342 - 898,459 Net pension liability 4,624,611 3,620,105 676,476 - 8,921,192 Unearned revenue 362,157 - - - 362,157 Total noncurrent liabilities 20,190,992 4,162,998 756,818 - 25,110,808 Total liabilities 22,850,706 4,960,888 856,999 2,000 28,670,593 DEFERRED INFLOWS OF RESOURCES Pensions 283,626 247,414 60,951 - 591,991 Total deferred inflows of resources 283,626 247,414 60,951 - 591,991 NET POSITION Net investment in capital assets 54,768,124 1,786,719 7,237,424 - 63,792,267 Restricted for debt service 7,912,696 - - - 7,912,696 Restricted for operations - - - 525,164 525,164 Unrestricted 3,496,051 1,447,797 327,495 - 5,271,343 Total net position $ 66,176,871 $ 3,234,516 $ 7,564,919 $ 525,164 $ 77,501,470 Stormwater Utility Fund CITY OF NORTH AUGUSTA, SOUTH CAROLINA STATEMENT OF NET POSITION PROPRIETARY FUNDS DECEMBER 31, 2022 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 $ 10,820,789 $ 3,896,225 $ 860,588 $- $ 15,577,602 Sale of recyclables - 107,590 - - 107,590 Miscellaneous 545,341 1,809,135 20,956 - 2,375,432 Total operating revenues 11,366,130 5,812,950 881,544 - 18,060,624 OPERATING EXPENSES Finance 684,729 - - - 684,729 Administration 517,547 - - - 517,547 Operations and maintenance 5,479,003 2,714,056 622,155 26,000 8,841,214 Production and treatment 1,570,535 - - - 1,570,535 Material recovery facility - 804,601 - - 804,601 Depreciation and amortization 1,641,393 526,184 329,708 - 2,497,285 Total operating expenses 9,893,207 4,044,841 951,863 26,000 14,915,911 Operating income (loss)1,472,923 1,768,109 (70,319) (26,000) 3,144,713 NONOPERATING REVENUES (EXPENSES) Interest income 199,451 76,371 11,960 9,372 297,154 Gain (loss) on sale of property 7,860 (8,796) - - (936) Interest expense and fiscal charges (302,789) (9,489) (3,493) - (315,771) Intergovernmental 23,515 - 73,500 - 97,015 Total nonoperating revenues (expenses), net (71,963) 58,086 81,967 9,372 77,462 Income (loss) before capital contributions and transfers 1,400,960 1,826,195 11,648 (16,628) 3,222,175 CAPITAL CONTRIBUTIONS 635,703 - 457,670 - 1,093,373 TRANSFERS Transfers in 229,971 8,505 2,043 - 240,519 Transfers out (840,240) (401,048) (29,635) - (1,270,923) Total transfers (610,269) (392,543) (27,592) - (1,030,404) Change in net position 1,426,394 1,433,652 441,726 (16,628) 3,285,144 Total net position, beginning of year 64,750,477 1,800,864 7,123,193 541,792 74,216,326 Total net position, end of year $ 66,176,871 $ 3,234,516 $ 7,564,919 $ 525,164 $ 77,501,470 Utility Fund CITY OF NORTH AUGUSTA, SOUTH CAROLINA FOR THE YEAR ENDED DECEMBER 31, 2022 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 $ 11,261,426 $ 5,686,428 $ 801,544 $- $ 17,749,398 Payments to suppliers (5,776,439) (1,318,293) (155,543) (26,000) (7,276,275) Payments to employees (2,626,225) (2,069,414) (480,530) - (5,176,169) Net cash provided by (used in) operating activities 2,858,762 2,298,721 165,471 (26,000) 5,296,954 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Transfers in 229,971 8,505 2,043 - 240,519 Transfers out (840,240) (401,048) (29,635) - (1,270,923) Net cash used in noncapital financing activities (610,269) (392,543) (27,592) - (1,030,404) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Purchases of capital assets (381,551) (731,048) (365,206) - (1,477,805) Proceeds from the sale of capital assets 7,860 31,463 - - 39,323 Proceeds from the issuance of financed purchases 176,759 284,246 112,753 - 573,758 Principal paid on revenue bonds (1,085,000) - - - (1,085,000) Principal paid on financed purchases (254,080) (424,096) (48,931) - (727,107) Capital grants received 23,515 - 73,500 - 97,015 Interest and agent fees paid (307,558) (9,489) (2,785) - (319,832) Net cash used in capital and related financing activities (1,820,055) (848,924) (230,669) - (2,899,648) CASH FLOWS FROM INVESTING ACTIVITIES Interest received 199,451 76,371 11,960 9,372 297,154 Net cash provided by investing activities 199,451 76,371 11,960 9,372 297,154 Net change in cash and cash equivalents 627,889 1,133,625 (80,830) (16,628) 1,664,056 Cash and cash equivalents, beginning of year 15,070,860 4,117,994 1,056,818 543,792 20,789,464 Cash and cash equivalents, end of year $ 15,698,749 $ 5,251,619 $ 975,988 $ 527,164 $ 22,453,520 Classified as: Cash and cash equivalents $ 7,173,905 $ 5,251,619 $ 975,988 $ 527,164 $ 13,928,676 Restricted assets, cash 8,524,844 - - - 8,524,844 $ 15,698,749 $ 5,251,619 $ 975,988 $ 527,164 $ 22,453,520 (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, 2022 Nonmajor The accompanying notes are an integral part of these financial statements. 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)$ 1,472,923 $ 1,768,109 $ (70,319) $ (26,000) $ 3,144,713 Adjustments to reconcile operating income (loss) to net cash provided by (used in) operating activities: Depreciation and amortization 1,641,393 526,184 329,708 - 2,497,285 Changes in assets and liabilities: Increase in accounts receivable (81,189) (126,522) (80,000) - (287,711) Increase in inventory (7,739) - - - (7,739) Decrease in deferred outflow of resources 122,357 90,816 26,647 - 239,820 Increase (decrease) in accounts payable (81,854) 192,311 3,516 - 113,973 Increase in accrued liabilities 27,637 13,865 4,637 - 46,139 Increase in customer deposits 12,458 - - - 12,458 Decrease in unearned revenue (23,515) - - - (23,515) Increase in net pension liability 130,298 96,710 28,377 - 255,385 Decrease in deferred inflows or resources (354,007) (262,752) (77,095) - (693,854) Net cash provided by (used in) operating activities $ 2,858,762 $ 2,298,721 $ 165,471 $ (26,000) $ 5,296,954 SCHEDULE OF NON-CASH CAPITAL AND RELATED FINANCING ACTIVITIES Contributions of capital assets $ 635,703 $ - $ 457,670 $ - $ 1,093,373 $ 635,703 $ - $ 457,670 $ - $ 1,093,373 Utility Fund Enterprise Funds Water and PROPRIETARY FUNDS FOR THE YEAR ENDED DECEMBER 31, 2022 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, 2022 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. Tax Increment 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 $5,000. Management can also over-expend appropriations, with the City Administrator’s approval, at the line item and department level, as long as the total expenditures or expenses do not exceed appropriations of the functional area.  Formal budgetary integration is employed as a management control device. A budget is legally adopted annually for the General Fund on a basis consistent with U.S. GAAP.  Annual budgets are not adopted for the Special Revenue Funds or the Capital Projects Funds. These funds budget on a project or activity basis instead of an annual operating cycle basis. Budgets for the enterprise funds are legally adopted annually on a basis consistent with U.S. GAAP except that depreciation is not a budgeted item.  Budgeted amounts are as originally adopted or as amended by the City Council or the City Administrator. There were no individual amendments to the original appropriations, which were adopted and consisted of transferring amounts within departmental accounts. No supplemental appropriations were necessary during the year.  The City employs the use of encumbrance accounting during the year. All encumbrances lapse at the end of the year.  Unexpended appropriations lapse at the end of the year except that a whole or part of appropriations provided in the budget for capital or betterment outlays of any department or activity remaining unexpended at the close of the fiscal year is held available for the following year. 30 NOTES TO FINANCIAL STATEMENTS NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) D. Budgets and Budgetary Accounting (Continued) Excess of Expenditures over Appropriations – For the year ended December 31, 2022, expenditures exceeded budget in the General Fund for the following functions: (Over) Under Function Final Budget Actual Budget Current - Public Safety 8,729,910$ 8,697,191$ 32,719$ Capital Outlay - Public Safety 75,000 828,199 (753,199) Total Public Safety 8,804,910$ 9,525,390$ (720,480)$ Current - Parks, Recreation and Tourism 2,913,537$ 3,086,328$ (172,791)$ Capital Outlay - Parks, Recreation and Tourism 12,500 46,635 (34,135) Total Parks, Recreation and Tourism 2,926,037$ 3,132,963$ (206,926)$ The over-expenditures for Public Safety were due to the purchase of vehicles and equipment with the capital lease proceeds. The over-expenditures for Parks, Recreation & Tourism were due to the increase 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. Leases (Lessor) - The City is the lessor for certain noncancellable leases of real property within the City. The City recognizes a lease receivable and a deferred inflow of resources for deferred lease receipts in accordance with these transactions. 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) Leases (Lessor) (Continued) At the commencement of a lease, the City initially measures the lease receivable at the present value of payments expected to be received during the lease term. Subsequently, the lease receivable is reduced by the principal portion of lease payments made. The deferred inflow of resources is initially measured as the initial amount of the lease receivable, adjusted for lease payments made at or before the lease commencement date, less certain other amounts to be paid by the City (if any). Subsequently, the deferred inflow of resources is amortized into lease revenue on a straight-line basis over the lease term. Key estimates and judgments related to leases include how the City determines (1) the discount rate it uses to discount the expected lease payments to present value, (2) lease term, and (3) lease payments:  The lease agreements entered into by the City as lessor do not include stated interest rates. Therefore, the City generally uses its estimated incremental borrowing rate as the discount rate for leases.  The lease term includes the noncancellable period of the lease. Lease payments included in the measurement of the lease receivable are composed of fixed payments that the City will receive over the term of the lease agreement. The City monitors changes in circumstances that would require a remeasurement of its lease and will remeasure the lease receivable and deferred inflow of resources if certain changes occur that are expected to significantly affect the amount of the lease. 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. 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) 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 6 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 assets that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The City’s deferred outflows consist of pension related items, as further discussed in Note 8. In addition to liabilities, the Statement of 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 assets 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, deferred lease receipts 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. The item Deferred lease receipts, as previously discussed, are reported on the Statement of Net Position and the Governmental Funds Balance Sheet as a deferred inflow of resources. Certain pension related items, as further discussed in Note 8, are also classified as deferred inflows of resources and are reported on the Statement of Net Position. 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. 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) Fund balance is divided into five classifications based primarily on the extent to which the City is bound to observe constraints imposed upon the use of the resources in the governmental funds. The classifications are as follows: Nonspendable – Fund balances are reported as nonspendable when amounts cannot be expended because they are either (1) not in spendable form or (2) legally or contractually required to be maintained intact. Restricted – Fund balances are reported as restricted when there are restrictions imposed on their use either through enabling legislation adopted by the City or through external restrictions imposed by creditors, grantors, contributors, or laws or regulations of other governments or imposed by law through state statute. Committed – Fund balances are reported as committed when they can be used only for a specific purpose pursuant to constraints imposed at the highest level of decision-making authority. The City Council is the highest level of decision-making authority. The City Council can establish, modify, or rescind a fund balance commitment through adoption of a resolution. Assigned – Fund balances are reported as assigned when amounts are constrained by the City Council’s intent to be used for specific purposes but are neither restricted nor committed. The City Administrator, who is appointed by and serves at the pleasure of the City Council, has the authority to assign fund balance amounts and does not require formal action to impose, modify, or remove any fund balance assignment. Unassigned –- Fund balances are reported as unassigned as the remaining amount when the balances do not meet any of the other classifications. The City reports positive fund balance in the general fund only, if applicable. Negative unassigned balances may be reported in all governmental funds. Flow Assumptions – When both restricted and unrestricted amounts of fund balances are available for use for expenditures incurred, the City’s policy is to use restricted amounts first and then unrestricted amounts as they are needed. For unrestricted amounts of fund balance, the City’s policy is to use fund balances in the following order: committed, assigned, unassigned. 35 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) 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. NOTE 2. CASH AND CASH EQUIVALENTS AND DEPOSITS As of December 31, 2022, the City’s cash and cash equivalents consisted of the following: Statement of Net Position: Cash $ 56,739,336 Restricted cash 8,528,140 $ 65,267,476 Cash deposited with financial institutions $ 22,479,065 South Carolina Local Governmental Investment Pool 42,788,411 $ 65,267,476 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; 36 NOTES TO FINANCIAL STATEMENTS NOTE 2. CASH AND CASH EQUIVALENTS AND DEPOSITS (CONTINUED) Credit Risk (Continued)  Certificates of deposit where the certificates are collaterally secured by securities of the type described above held by a third party as escrow agent or custodian, of a market value not less than the amount of the certificates of deposit so secured, including interest; provided; however, such collateral shall not be required to the extent the same are insured by an agency of the federal government; and,  No load open-end or closed-end management-type investment companies or investment trusts registered under the Investment Company Act of 1940, as amended, where the investment is made by a bank or trust company or savings and loan association or other financial institution when acting as trustee or agent for a bond or other debt issue of that local government unit, political subdivision, or City treasurer if the particular portfolio of the investment company or investment trust in which the investment made is (i) limited to obligations described in items 1, 2, and 5 of this subsection, and (ii) has among its objectives the attempt to maintain a constant net asset value of one dollar a share and to that end, value its assets by the amortized cost method. Section 6-6-20 of the State of South Carolina Code of Laws authorizes the State Treasurer’s Office to invest and reinvest the monies of the State Treasurer’s Investment Pool in the investments identified in Section 6-5-10 shown above and identified in Section 11-9-660 as follows:  Obligations of the United States, its agencies, and instrumentalities;  Obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development, the African Development Bank, and the Asian Development Bank;  Obligations of a corporation, state, or political subdivision denominated in United States dollars, if the obligations bear an investment-grade rating of at least two nationally recognized rating services;  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. 37 NOTES TO FINANCIAL STATEMENTS NOTE 2. CASH AND CASH EQUIVALENTS AND DEPOSITS (CONTINUED) Credit Risk (Continued) 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, 2022, 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 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, 2022, the carrying amount of the City’s deposits was $22,479,065 and the bank balance was $23,117,925. The entire bank balance was covered by federal depository insurance or by collateral held by the City’s agent in the City’s name. 38 NOTES TO FINANCIAL STATEMENTS NOTE 3. FAIR VALUE MEASUREMENTS The City follows the Fair Value Measurements topic of GASB, which requires fair value measurement be classified and disclosed in one of the following three Fair Value Hierarchy categories: Level 1 Quoted prices are available in active markets for identical investments as of the reporting date. The types of investments which would generally be included in Level 1 include listed equity securities, mutual funds, and money market funds. Level 2 Pricing inputs are observable for the investments, either directly or indirectly, as of the reporting date, but are not the same as those used in Level 1; inputs include comparable market transactions, pricing of similar instruments, values reported by the administrator, and pricing expectations based on internal modeling. Fair value is determined through the use of models or other valuation methodologies. The types of investments which would generally be included in this category include publicly traded securities with restrictions on disposition, corporate obligations, and U.S. Government and Agency Treasury Inflation Indices. Level 3 Pricing inputs are unobservable for the investment and include situations where there is little, if any, market activity for the investments. The types of investments which would generally be included in this category include debt and equity securities issued by private entities and partnerships. The inputs into the determination of fair value require significant judgment or estimation. Inputs include recent transactions, earnings forecasts, market multiples, and future cash flows. The City’s recurring fair value measurements as of December 31, 2022, for its $42,788,411 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. 39 NOTES TO FINANCIAL STATEMENTS NOTE 4. RECEIVABLES Receivables as of December 31, 2022, including the applicable allowances for uncollectible accounts, are as follows: Fund Receivables: Taxes $ 386,934 $ - $ - $ - $- $- Accounts 611,552 112,027 - 1,629,689 138,305 80,000 Intergovernmental 47,984 - 48,516 - - - Leases 958,795 - - - - - - Gross recievables 2,005,265 112,027 48,516 1,629,689 138,305 80,000 Less allowance for uncollectibles: Taxes (202,484) - - - - - Accounts - - - (31,000) - - Total allowance (202,484) - - (31,000) - - Net receivables $ 1,802,781 $ 112,027 $ 48,516 $ 1,598,689 $138,305 $ 80,000 Stormwater Utility Enterprise Funds Nonmajor Water and Services SanitationGeneralWastewater System Public Facilities North Augusta Corporation Governmental Funds Governmental Funds 40 NOTES TO FINANCIAL STATEMENTS NOTE 5. CAPITAL ASSETS Capital asset activity for the governmental activities for the year ended December 31, 2022, 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 2,823,366 2,458,826 - - 5,282,192 Right-of-way 4,055,316 160,212 - - 4,215,528 Total 17,209,073 2,619,038 - - 19,828,111 Capital assets, being depreciated: Land improvements 22,799,403 202,099 - - 23,001,502 Buildings 106,324,675 - - - 106,324,675 Machinery and equipment 3,443,838 980,750 (36,935) - 4,387,653 Furniture and fixtures 1,545,725 14,118 - - 1,559,843 Vehicles 8,911,655 849,525 (104,505) - 9,656,675 Infrastructure 31,644,337 905,764 - - 32,550,101 Total 174,669,633 2,952,256 (141,440) - 177,480,449 Less accumulated depreciation for: Land improvements (11,665,632) (818,445) - - (12,484,077) Buildings (19,617,492) (2,549,086) - - (22,166,578) Machinery and equipment (2,085,229) (268,590) 36,935 - (2,316,884) Furniture and fixtures (1,516,256) (7,624) - - (1,523,880) Vehicles (5,841,611) (660,993) 61,925 - (6,440,679) Infrastructure (16,309,208) (1,071,858) - - (17,381,066) Total (57,035,428) (5,376,596) 98,860 - (62,313,164) Total capital assets, being depreciated, net 117,634,205 (2,424,340) (42,580) - 115,167,285 Governmental activities capital assets, net $ 134,843,278 $ 194,698 $ (42,580) $- $ 134,995,396 41 NOTES TO FINANCIAL STATEMENTS NOTE 5. CAPITAL ASSETS (CONTINUED) Capital asset activity for the business-type activities for the year ended December 31, 2022, is as follows: Beginning Ending Balance Increases Decreases Transfers Balance Business-type activities Capital assets, not being depreciated: Land $ 824,058 $- $- $- $ 824,058 Construction in progress - 640,546 - - 640,546 Easements 62,760 - - - 62,760 Total 886,818 640,546 - - 1,527,364 Capital assets, being depreciated: Land improvements 88,650 - - - 88,650 Buildings 24,178,306 - - - 24,178,306 Machinery and equipment 3,477,947 28,230 (93,172) - 3,413,005 Vehicles 4,940,521 365,143 (151,374) - 5,154,290 System improvements 78,491,548 1,537,259 - - 80,028,807 PSA Capital 4,667,405 - - - 4,667,405 Service rights 100,000 - - - 100,000 Total 115,944,377 1,930,632 (244,546) - 117,630,463 Less accumulated depreciation for: Land improvements (3,565) (3,547) - - (7,112) Buildings (5,374,915) (685,093) - - (6,060,008) Machinery and equipment (2,316,249) (151,467) 52,913 - (2,414,803) Vehicles (3,527,720) (337,814) 151,374 - (3,714,160) System improvements (21,209,964) (1,254,883) - - (22,464,847) PSA Capital (3,058,666) (61,981) - - (3,120,647) Service rights (84,019) (2,500) - - (86,519) Total (35,575,098) (2,497,285) 204,287 - (37,868,096) Total capital assets, being depreciated, net 80,369,279 (566,653) (40,259) - 79,762,367 Business-type activities capital assets, net $ 81,256,097 $ 73,893 $ (40,259) $- $ 81,289,731 Included in current year additions are contributed systems in the amount of $635,703 for the water and wastewater system and $457,670 for the stormwater utility. 42 NOTES TO FINANCIAL STATEMENTS NOTE 5. CAPITAL ASSETS (CONTINUED) Depreciation expense was charged to functions/programs of the primary government as follows: General government $ 2,221,199 Public safety 822,522 Public works 1,461,869 Parks, recreation and tourism 871,006 Total depreciation expense - governmental activities $ 5,376,596 Governmental activities Water and Wastewater System $ 1,641,393 Sanitation Services 526,184 Stormwater Utility 329,708 Total depreciation and amortization expense - business-type activities $ 2,497,285 Business-type activities NOTE 6. LONG-TERM DEBT AND OTHER LONG-TERM LIABILITIES Changes in Long-term Debt and Other Long-term Liabilities Long-term liability activity for the year ended December 31, 2022, was as follows: Beginning Ending Due within Balance Additions Reductions Balance One Year Governmental activities Revenue bonds: North Augusta Public Facility Corporation bonds $ 68,085,000 $- $ (710,000) $ 67,375,000 $ 780,000 General obligation bonds 10,250,000 - (1,658,000) 8,592,000 1,678,000 Financed purchases payable 2,145,743 776,578 (816,079) 2,106,242 756,455 Compensated absences 782,109 523,847 (475,683) 830,273 646,271 Net pension liability 14,150,734 2,082,173 - 16,232,907 - Total long-term liabilities $ 95,413,586 $ 3,382,598 $ (3,659,762) $ 95,136,422 $ 3,860,726 For governmental activities, compensated absences and the net pension liability are generally liquidated by the General Fund and special revenue funds, while financed purchases payable are liquidated by the General Fund and the Capital Projects Fund. 43 NOTES TO FINANCIAL STATEMENTS NOTE 6. 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, 2022, 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 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 1,395,000 3,035,256 4,430,256 2028 - 2032 8,910,000 14,275,932 23,185,932 2033 - 2037 11,030,000 12,036,301 23,066,301 2038 - 2042 14,685,000 9,206,463 23,891,463 2043 - 2047 22,105,000 4,866,065 26,971,065 2048 5,565,000 277,527 5,842,527 Total $ 67,375,000 $ 56,175,794 $ 123,550,794 2017B Revenue Bonds 44 NOTES TO FINANCIAL STATEMENTS NOTE 6. LONG-TERM DEBT AND OTHER LONG-TERM LIABILITIES (CONTINUED) General Obligation Bonds – General Obligation bonds payable (recorded as a liability for governmental activities) at December 31, 2022, 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 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 $ 8,592,000 $ 258,028 $ 8,850,028 2020 General Obligation Bonds Financed Purchases Payable – The City has entered into several financed purchase payable agreements for various equipment. Principal and interest payments are due annually. Interest rates range from 1.51% to 2.56%. The annual debt service requirements are as follows: Year ending December 31, Principal Interest Total 2023 $ 756,455 $ 31,070 $ 787,525 2024 592,497 18,352 610,849 2025 467,297 10,079 477,376 2026 289,993 4,474 294,467 Total $ 2,106,242 $ 63,975 $ 2,170,217 Governmental Activities 45 NOTES TO FINANCIAL STATEMENTS NOTE 6. LONG-TERM DEBT AND OTHER LONG-TERM LIABILITIES (CONTINUED) Long-term liability activity for the year ended December 31, 2022, was as follows: Beginning Ending Due within Balance Additions Reductions Balance One Year Business-type activities Revenue bonds payable $ 17,118,000 $- $ (1,085,000) $ 16,033,000 $ 1,104,000 Financed purchases payable 1,617,813 573,758 (727,107) 1,464,464 566,005 Compensated absences 315,425 270,546 (237,496) 348,475 348,475 Net pension liability 8,665,807 255,385 - 8,921,192 - Total long-term liabilities $ 27,717,045 $ 1,099,689 $ (2,049,603) $ 26,767,131 $ 2,018,480 For business-type activities, compensated absences, financed purchases, 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, 2022, 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 were 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 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 1,186,000 196,236 1,382,236 2028 - 2032 6,265,000 649,953 6,914,953 2033 - 2036 4,044,000 120,960 4,164,960 Total $ 16,033,000 $ 1,959,975 $ 17,992,975 2021 Refunding 46 NOTES TO FINANCIAL STATEMENTS NOTE 6. 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 2022 totaled $1,392,558. Total net charges for services for the year were $11,366,130. 47 NOTES TO FINANCIAL STATEMENTS NOTE 6. LONG-TERM DEBT AND OTHER LONG-TERM LIABILITIES (CONTINUED) Financed Purchases Payable – The City has entered into several financed purchase payable agreements for various equipment. Principal and interest payments are due annually. Interest rates range from 1.51% to 2.56%. The annual debt service requirements are as follows: Year ending December 31, Principal Interest Total 2023 $ 208,716 $ 7,449 $ 216,165 2024 166,863 3,829 170,692 2025 79,410 1,467 80,877 2026 28,951 564 29,515 Total $ 483,940 $ 13,309 $ 497,249 Water and Wastewater Year ending December 31, Principal Interest Total 2023 $ 318,905 $ 11,118 $ 330,023 2024 297,602 6,629 304,231 2025 210,478 2,953 213,431 2026 34,813 906 35,719 Total $ 861,798 $ 21,606 $ 883,404 Sanitation Services Year ending December 31, Principal Interest Total 2023 $ 38,384 $ 1,828 $ 40,212 2024 28,522 1,162 29,684 2025 28,577 764 29,341 2026 23,243 360 23,603 Total $ 118,726 $ 4,114 $ 122,840 Stormwater Utility NOTE 7. PROPERTY TAXES Taxes on real property and merchants’ inventory are levied on January 1 of each year and are based on ownership of such property and inventory as of January 1 of the preceding year. These taxes are billed and payable between January 1 and May 1 of the year in which they are levied. As of May 1, property taxes attach as an enforceable lien on property. The City bills and collects its own real and merchants’ ad valorem taxes. Taxes on personal property are levied and billed in the month prior to the renewal of the annual vehicle registration through the State Highway Department and are payable prior to the registration and tag purchase. Ad valorem taxes on personal property (vehicles) are billed and collected by the County Treasurer and remitted to the City on a monthly basis. City property tax revenues are recognized in the year for which taxes have been levied and are collectible either during that year or within 60 days following year-end. 48 NOTES TO FINANCIAL STATEMENTS NOTE 8. 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. 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. 49 NOTES TO FINANCIAL STATEMENTS NOTE 8. DEFINED BENEFIT PENSION PLAN (CONTINUED) Plan Description (Continued): 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. 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. 50 NOTES TO FINANCIAL STATEMENTS NOTE 8. DEFINED BENEFIT PENSION PLAN (CONTINUED) Benefits (Continued): 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. 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. 51 NOTES TO FINANCIAL STATEMENTS NOTE 8. DEFINED BENEFIT PENSION PLAN (CONTINUED) 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. In accordance with the legislative funding schedule, employer contribution rates will continue to increase by 1 percentage point each year until reaching 18.56 percent for SCRS and 21.24 percent for PORS but may be increased further, if the scheduled contributions are not sufficient to meet the funding periods set for the applicable year. The Board shall increase the employer contribution rates as necessary to meet the amortization period set in statue. Pension reform legislation modified statue such that the employer contribution rates for SCRS and PORS to be further increased, not to exceed one-half of one percent in any one year, if necessary, in order to improve the funding of the plans. The statute set rates intended to reduce the unfunded liability of SCRS and PORS to the maximum amortization period of 20 years from 30 over a ten- year schedule, as determined by the annual actuarial valuations of the plan. Finally, under the revised statue, the contribution rates for SCRS and PORS may not be decreased until the plans are at least 85 percent funded. For the year ended December 31, 2022, the City contributed $1,482,315 and $860,663, to the SCRS and PORS plans, respectively. Required employee contribution rates for the year ended December 31, 2022, are as follows: South Carolina Retirement System 9.00% of earnable compensation South Carolina Police Officers Retirement System 9.75% of earnable compensation 52 NOTES TO FINANCIAL STATEMENTS NOTE 8. DEFINED BENEFIT PENSION PLAN (CONTINUED) Contributions (Continued): Required employer contribution rates for the year ended December 31, 2022, are as follows: South Carolina Retirement System 16.41% of earnable compensation from January 1st through June 30th 17.41% of earnable compensation from July 1st through December 31st Employer incidental death benefit: 0.15% of earnable compensation South Carolina Police Officers Retirement System 18.84% of earnable compensation from January 1st through June 30th 19.84% of earnable compensation from July 1st through December 31st Employer incidental death benefit: 0.20% of earnable compensation Net Pension Liability: The June 30, 2022, (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, 2022, using generally accepted actuarial principles. Information included in the following schedules is based on the certification provided by GRS. 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, 2022, (measurement date of June 30, 2022), 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 39,606,980$ 22,599,368$ 17,007,612$ 57.1%0.070157% PORS 24,278,512$ 16,132,025$ 8,146,487$ 66.4%0.271642% 53 NOTES TO FINANCIAL STATEMENTS NOTE 8. DEFINED BENEFIT PENSION PLAN (CONTINUED) Actuarial Assumptions and Methods (Continued): 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, 2022, 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, 2021. The total pension liability was rolled-forward from the valuation date to the plans’ fiscal year end, June 30, 2022, using generally accepted actuarial principles. There was no legislation enacted during the 2022 legislative session that had a material change in the benefit provisions for any of the systems. The following table provides a summary of the actuarial assumptions and methods used in the July 1, 2021, 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 54 NOTES TO FINANCIAL STATEMENTS NOTE 8. DEFINED BENEFIT PENSION PLAN (CONTINUED) 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 2022 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. 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%6.79%3.12% Bonds 26.0%-0.35%-0.09% Private Equity 9.0%8.75%0.79% Private Debt 7.0%6.00%0.42% Real Assets 12.0% Real Estate 9.0%4.12%0.37% Infrastructure 3.0%5.88%0.18% 100.0% Total expected real return 4.79% Inflation for actuarial purposes 2.25% Total expected nominal return 7.04% 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 8. 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 $ 21,805,800 $ 17,007,612 $ 13,018,460 PORS $ 11,359,786 $ 8,146,487 $ 5,516,100 (8%)(6%) 1% Decrease 1% Increase Deferred Outflows and Inflows of Resources Related to Pensions: At December 31, 2022, 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 $ 147,764 $ 74,119 Changes of assumptions 545,474 - Net difference between projected and actual earnings on pension plan investments 26,230 - Changes in proportionate share and differences between employer contributions and proportionate share of total plan employer contributions 301,668 1,203,159 Employer contributions subsequent to the measurement date 763,220 - Total $ 1,784,356 $ 1,277,278 Deferred Deferred Outflows of Inflows of Resources Resources 56 NOTES TO FINANCIAL STATEMENTS NOTE 8. DEFINED BENEFIT PENSION PLAN (CONTINUED) Deferred Outflows and Inflows of Resources Related to Pensions (Continued): PORS Differences between expected and actual experience $ 136,682 $ 161,042 Changes of assumptions 339,233 - Net difference between projected and actual earnings on pension plan investments 24,600 - Changes in proportionate share and differences between employer contributions and proportionate share of total plan employer contributions 498,359 258,608 Employer contributions subsequent to the measurement date 437,185 - Total $ 1,436,059 $ 419,650 Deferred Deferred Outflows of Inflows of Resources Resources City contributions subsequent to the measurement date of $763,220 and $437,185 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, 2023. 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 2023 $ (38,864) $ 196,326 2024 14,064 212,145 2025 (674,890) (145,902) 2026 443,548 316,655 57 NOTES TO FINANCIAL STATEMENTS NOTE 8. DEFINED BENEFIT PENSION PLAN (CONTINUED) Pension Expense: For the year ended December 31, 2022 (measurement period ended June 30, 2022), the City recognized its proportionate share of collective pension expense of $1,427,173 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 ($410,201) for a total of $1,016,972 for the SCRS plan. Additionally, for the year ended December 31, 2022 (measurement period ended June 30, 2022), the City recognized its proportionate share of collective pension expense of $793,520 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 ($38,274) for a total of $755,246 for the PORS plan. Total pension expense for both the SCRS plan and the PORS plan amounted to $1,772,218. NOTE 9. INTERFUND TRANSFERS The following interfund transfers are reflected in the fund financial statements at December 31, 2022: Governmental Funds General Fund $ 1,387,093 $ 2,834,351 Capital Projects 3,663,848 110,390 Tax Increment Financing - 3,247,293 North Augusta Public Facilities Corporation 4,517,293 - ARPA - 1,035,721 Nonmajor - 1,310,075 Total Governmental Funds 9,568,234 8,537,830 Enterprise Funds Water and Wastewater System 229,971 840,240 Sanitation Services 8,505 401,048 Stormwater Utility 2,043 29,635 Total Enterprise Funds 240,519 1,270,923 Total Transfers $ 9,808,753 $ 9,808,753 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 10. RISK MANAGEMENT The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. The City has joined together with other municipalities in the state to form the South Carolina Municipal Insurance and Risk Financing Fund (SCMIRF), which is a public entity risk pool currently operating as common risk management and insurance programs. The City pays a bi-annual premium to SCMIRF for its general insurance. The SCMIRF is self-sustaining through member premiums and will reinsure through commercial companies. The City also has joined together with other municipalities in the state to form the South Carolina Municipal Insurance Trust (SCMIT), a public entity risk pool operating as a common risk management and insurance program for worker’s compensation. The City pays a quarterly premium to SCMIT. The SCMIT is self-sustaining through member premiums and uses reinsurance agreements to reduce its exposure to large workers’ compensation losses. There were no significant reductions in insurance coverage during the year. Settlements have not exceeded insurance coverage for each of the past three years. The City pays monthly premiums to the Public Employee Benefit Authority for its health and dental insurance benefits. NOTE 11. COMMITMENTS Significant commitments at December 31, 2022, are composed of the following: Public Safety Station I $ 3,800,000 $ 3,674,368 $ 125,632 Public Safety Headquarters 27,700,000 439,841 27,260,159 MRF Reconstruction 1,736,553 452,750 1,283,803 Southwest Interceptor Pipeline Rehab 3,935,004 186,647 3,748,357 Clay Street Booster Pump Station Upgrade 3,123,632 25,570 3,098,062 Pole Brach Remediation 2,934,750 168,667 2,766,083 Project Authorization Expended through December 31, 2022 Commitment 59 NOTES TO FINANCIAL STATEMENTS NOTE 11. COMMITMENTS (CONTINUED) 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. NOTE 12. CONTINGENCIES The City is a defendant in various lawsuits. In the opinion of the City’s management and the City Attorney, the ultimate effect of these matters will not have a material adverse effect on the financial condition of the City. NOTE 13. TAX ABATEMENTS As of December 31, 2022, 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. 60 NOTES TO FINANCIAL STATEMENTS NOTE 13. TAX ABATEMENTS (CONTINUED) 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, 2022, the City’s taxes were reduced as a part of the FILOT agreement previously disclosed in the amount of $22,685. 61 REQUIRED SUPPLEMENTARY INFORMATION CITY OF NORTH AUGUSTA, SOUTH CAROLINA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY FOR THE YEAR ENDED DECEMBER 31, SOUTH CAROLINA RETIREMENT SYSTEM Plan Year Ended June 30 City's proportion of the net pension liability City's proportionate share of the net pension liability City's covered payroll City's share of the net pension liability as a percentage of its covered payroll Plan fiduciary net position as a percentage of the total pension liability 2022 0.07%17,007,612$ 8,443,681$ 201.4%57.06% 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 2022 0.27% 8,146,487$ 4,208,282$ 193.6% 66.45% 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. 62 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 2022 $ 1,482,315 $ 1,482,315 $- $ 8,688,722 17.06% 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% 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 2022 $ 860,663 $ 860,663 $ - $ 4,361,033 19.74% 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% 63 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, 2020 July 1, 2020 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 27 years maximum,27 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 3.50% plus step-rate increases for members with less than 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. 64 OTHER SUPPLEMENTARY INFORMATION Revenues: Taxes Current $ 8,604,193 $ 8,604,193 $ 8,909,818 $ 305,625 Delinquent 5,000 5,000 13,913 8,913 Penalties 65,000 65,000 234,662 169,662 Total taxes 8,674,193 8,674,193 9,158,393 484,200 Licenses and permits Business licenses 5,812,000 5,812,000 6,447,841 635,841 Building permits 444,000 444,000 592,845 148,845 Electrical permits 22,000 22,000 37,116 15,116 Mechanical permits 20,000 20,000 35,763 15,763 Plumbing permits 15,000 15,000 23,952 8,952 Grading permits 15,000 15,000 16,787 1,787 Total licenses and permits 6,328,000 6,328,000 7,154,304 826,304 Intergovernmental State of South Carolina: State shared revenue 594,956 594,956 638,866 43,910 Accommodations tax 31,000 31,000 35,738 4,738 Merchants' inventory tax 54,700 54,700 68,487 13,787 Local option sales tax 25,000 25,000 63,897 38,897 Law enforcement net grant 10,000 10,000 5,842 (4,158) Department of Justice grant 5,000 5,000 7,538 2,538 Highway safety grant 162,345 162,345 180,792 18,447 Aiken County FILOT 53,000 53,000 189,570 136,570 Total intergovernmental 936,001 936,001 1,190,730 254,729 Charges for services Fire protection fees 42,048 42,048 40,827 (1,221) Customer street light fees 93,509 93,509 99,378 5,869 Municipal Center rentals 41,000 41,000 67,475 26,475 Recreation fees: Special programs 27,000 27,000 8,103 (18,897) Volleyball 7,190 7,190 13,595 6,405 Soccer 64,380 64,380 67,705 3,325 Miscellaneous 110,500 110,500 110,264 (236) Basketball 37,950 37,950 55,450 17,500 Softball 26,360 26,360 45,489 19,129 Football 32,905 32,905 59,123 26,218 Baseball 48,270 48,270 81,764 33,494 Concession stand 160,000 160,000 221,054 61,054 Community Center fees 42,800 42,800 71,373 28,573 Activities Center fees 139,010 139,010 187,421 48,411 Recreation facilities rentals 49,000 49,000 82,944 33,944 Activities Center tournaments 253,000 253,000 463,532 210,532 Total charges for services 1,174,922 1,174,922 1,675,497 500,575 Fines and forfeitures Public safety fines 1,100,000 1,100,000 822,304 (277,696) Drug related fines 15,000 15,000 6,043 (8,957) Court costs 5,000 5,000 - (5,000) Total fines and forfeitures 1,120,000 1,120,000 828,347 (291,653) Miscellaneous Other 808,513 808,513 988,650 180,137 Communication tower rental 260,000 260,000 306,505 46,505 Interest earnings 37,100 37,100 100,626 63,526 Total miscellaneous 1,105,613 1,105,613 1,395,781 290,168 Total revenues $ 19,338,729 $ 19,338,729 $ 21,403,052 $ 2,064,323 (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, 2022 65 Expenditures: General Government City Council Personal services: Salaries and wages $ 111,351 $ 111,351 $ 113,095 $ (1,744) FICA 8,518 8,518 8,219 299 Employee retirement 15,570 15,570 15,937 (367) Employee insurance 24,900 24,900 22,778 2,122 Workers' compensation 3,381 3,381 2,661 720 Operating expenditures: General supplies/postage 7,000 7,000 4,383 2,617 Dues/training/travel 11,900 11,900 5,840 6,060 Advertising 700 700 740 (40) Professional services 50 50 - 50 Special department supplies 2,850 2,850 124 2,726 Insurance 1,759 1,759 1,863 (104) Contingencies 2,000 2,000 500 1,500 Total city council 189,979 189,979 176,140 13,839 City Administration Personal services: Salaries and wages 324,991 324,991 325,972 (981) FICA 24,862 24,862 22,905 1,957 Employee retirement 55,444 55,444 55,303 141 Employee insurance 16,600 16,600 1,519 15,081 Workers' compensation 9,652 9,652 7,598 2,054 Operating expenditures: General supplies/postage 1,850 1,850 922 928 Dues/training/travel 15,000 15,000 16,852 (1,852) Contracts/repairs 4,500 4,500 3,088 1,412 Professional services 47,500 47,500 28,108 19,392 Insurance 5,536 5,536 82,157 (76,621) Contingencies 50,000 50,000 27,452 22,548 Total city administration 555,935 555,935 571,876 (15,941) Justice and Law Personal services: Salaries and wages 129,549 129,549 138,991 (9,442) FICA 9,911 9,911 10,159 (248) Employee retirement 19,537 19,537 19,510 27 Employee insurance 8,300 8,300 7,593 707 Workers' compensation 4,024 4,024 3,168 856 Operating expenditures: General supplies/postage 1,000 1,000 884 116 State fees/fines 570,615 570,615 447,780 122,835 Dues/training/travel 6,250 6,250 4,164 2,086 Data processing 180 180 24,651 (24,471) Contracts/repairs 12,400 12,400 561 11,839 Jury services 3,000 3,000 160 2,840 Professional services 22,550 22,550 21,492 1,058 Juvenile detention 3,000 3,000 500 2,500 Insurance 34,210 34,210 36,238 (2,028) Total justice and law 824,526 824,526 715,851 108,675 (Continued) CITY OF NORTH AUGUSTA, SOUTH CAROLINA GENERAL FUND SCHEDULE OF REVENUES AND EXPENDITURES COMPARED WITH BUDGET FOR THE YEAR ENDED DECEMBER 31, 2022 Budget Variance with Actual Final BudgetOriginal Final 66 Expenditures (Continued): General Government (Continued) Community Promotion Operating expenditures: Contributions $ 30,600 $ 30,600 $ 25,338 $ 5,262 Dues/training/travel 5,931 5,931 6,113 (182) Special department supplies 13,750 13,750 10,695 3,055 Insurance 3,020 3,020 3,199 (179) Total community promotion 53,301 53,301 45,345 7,956 Finance Personal services: Salaries and wages 316,729 316,729 283,053 33,676 FICA 24,230 24,230 20,880 3,350 Employee retirement 54,034 54,034 46,849 7,185 Employee insurance 33,200 33,200 30,371 2,829 Workers' compensation 9,231 9,231 7,267 1,964 Operating expenditures: General supplies/postage 11,500 11,500 12,120 (620) Dues/training/travel 2,525 2,525 2,863 (338) Data processing 23,200 23,200 35,124 (11,924) Contracts/repairs 21,300 21,300 21,134 166 Advertising 2,400 2,400 1,590 810 Professional services 18,850 18,850 18,844 6 Insurance 3,985 3,985 4,221 (236) Total finance 521,184 521,184 484,316 36,868 City Buildings Personal services: Salaries and wages 69,933 69,933 69,325 608 Overtime pay 2,000 2,000 40 1,960 FICA 5,503 5,503 5,128 375 Employee retirement 12,272 12,272 11,421 851 Employee insurance 16,600 16,600 15,186 1,414 Workers' compensation 1,000 1,000 787 213 Operating expenditures: General supplies/postage 30,000 30,000 19,545 10,455 Auto operating 2,500 2,500 792 1,708 Utility services 164,000 164,000 324,265 (160,265) Contracts/repairs 95,020 95,020 117,810 (22,790) Professional services 6,700 6,700 5,643 1,057 Special department supplies 20,000 20,000 5,652 14,348 Insurance 16,701 16,701 17,691 (990) Uniforms 1,000 1,000 491 509 Capital outlay Buildings/fixed equipment - - 22,575 (22,575) Total city buildings 443,229 443,229 616,351 (173,122) Building Standards Personal services: Salaries and wages 290,112 290,112 259,671 30,441 FICA 22,194 22,194 18,582 3,612 Employee retirement 49,493 49,493 44,057 5,436 Employee insurance 37,350 37,350 34,168 3,182 Workers' compensation 8,770 8,770 6,904 1,866 Operating expenditures: General supplies/postage 3,000 3,000 2,585 415 Dues/training/travel 4,000 4,000 4,442 (442) Auto operating 7,800 7,800 8,156 (356) Data processing 17,100 17,100 18,702 (1,602) Contracts/repairs 3,550 3,550 3,766 (216) Uniforms/clothing 1,550 1,550 608 942 Professional services 10,000 10,000 20,234 (10,234) Special department supplies 2,600 2,600 7,597 (4,997) Insurance 2,901 2,901 3,073 (172) Capital outlay: Machines/equipment 6,000 6,000 - 6,000 Total building standards 466,420 466,420 432,545 33,875 (Continued) CITY OF NORTH AUGUSTA, SOUTH CAROLINA GENERAL FUND SCHEDULE OF REVENUES AND EXPENDITURES COMPARED WITH BUDGET FOR THE YEAR ENDED DECEMBER 31, 2022 Budget Variance with Original Final Actual Final Budget 67 Expenditures (Continued): General Government (Continued) Human Resources Personal services: Salaries and wages $ 151,138 $ 151,138 $ 152,875 $ (1,737) FICA 11,562 11,562 11,241 321 Employee retirement 25,784 25,784 25,860 (76) Employee insurance 16,600 16,600 15,186 1,414 Workers' compensation 4,257 4,257 3,351 906 Operating expenditures: General supplies/postage 3,930 3,930 3,878 52 Dues/training/travel 5,000 5,000 5,391 (391) Contracts/repairs 800 800 1,009 (209) Advertising 7,000 7,000 1,078 5,922 Professional services 54,402 54,402 48,197 6,205 Special department supplies 20,560 20,560 35,459 (14,899) Insurance 4,585 4,585 4,857 (272) Total human resources 305,618 305,618 308,382 (2,764) Planning and Development Personal services: Salaries and wages 361,523 361,523 340,842 20,681 FICA 27,656 27,656 25,391 2,265 Employee retirement 61,676 61,676 39,390 22,286 Employee insurance 45,650 45,650 41,760 3,890 Workers' compensation 8,603 8,603 6,772 1,831 Operating expenditures: General supplies/postage 5,000 5,000 2,127 2,873 Dues/training/travel 8,000 8,000 6,292 1,708 Auto operating 4,120 4,120 1,449 2,671 Data processing 8,575 8,575 9,225 (650) Contracts/repairs 2,500 2,500 2,780 (280) Advertising 2,000 2,000 975 1,025 Professional services 312,000 312,000 9,550 302,450 Special department supplies 5,000 5,000 2,449 2,551 Insurance 14,035 14,035 14,867 (832) Total planning and development 866,338 866,338 503,869 362,469 Property Maintenance Personal services: Salaries and wages 770,805 770,805 717,429 53,376 Overtime pay 21,200 21,200 25,191 (3,991) FICA 60,588 60,588 55,135 5,453 Employee retirement 135,116 135,116 125,689 9,427 Employee insurance 149,400 149,400 136,670 12,730 Workers' compensation 24,134 24,134 19,323 4,811 Operating expenditures: General supplies/postage 1,795 1,795 1,978 (183) Dues/training/travel 1,880 1,880 3,283 (1,403) Auto operating 37,613 37,613 51,486 (13,873) Utility services 15,347 15,347 15,775 (428) Contracts/repairs 38,904 38,904 48,662 (9,758) Building materials/supplies 2,055 2,055 1,499 556 Uniforms/clothing 14,850 14,850 13,218 1,632 Professional services 47,322 47,322 52,948 (5,626) Special department supplies 182,950 182,950 194,493 (11,543) Insurance 20,689 20,689 26,009 (5,320) Capital outlay: Automotive equipment - - 58,737 (58,737) Machines/equipment 7,130 7,130 23,829 (16,699) Total property maintenance 1,531,778 1,531,778 1,571,354 (39,576) (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, 2022 Budget Variance with 68 Expenditures (Continued): General Government (Continued) Information Technology Personal services: Salaries and wages $ 264,271 $ 264,271 $ 265,172 $ (901) FICA 20,217 20,217 19,782 435 Employee retirement 45,085 45,085 43,428 1,657 Employee insurance 33,200 33,200 30,371 2,829 Workers' compensation 7,460 7,460 5,872 1,588 Operating expenditures: General supplies/postage 5,900 5,900 2,914 2,986 Dues/training/travel 12,350 12,350 3,442 8,908 Auto operating 2,700 2,700 608 2,092 Utility services 123,650 123,650 128,938 (5,288) Data processing 72,320 72,320 71,282 1,038 Contracts/repairs 109,500 109,500 82,282 27,218 Professional services 19,000 19,000 18,754 246 Insurance 18,037 18,037 19,106 (1,069) Capital outlay: Office machines 36,000 36,000 34,400 1,600 Total information technology 769,690 769,690 726,351 43,339 Total current general government 6,478,868 6,478,868 6,012,839 466,029 Total capital outlay general government 49,130 49,130 139,541 (90,411) Total general government 6,527,998 6,527,998 6,152,380 375,618 Public Safety Personal services: Salaries and wages 5,042,683 5,042,683 5,024,691 17,992 Overtime pay 176,072 176,072 261,086 (85,014) FICA 399,235 399,235 387,966 11,269 Employee retirement 956,875 956,875 984,522 (27,647) Employee insurance 771,870 771,870 706,101 65,769 Workers' compensation 158,435 158,435 137,406 21,029 Unemployment insurance - - 1,799 (1,799) Operating expenditures: General supplies/postage 26,800 26,800 20,809 5,991 Dues/training/travel 51,900 51,900 53,218 (1,318) Auto operating 284,200 284,200 339,762 (55,562) Data processing 256,960 256,960 191,573 65,387 Contracts/repairs 135,000 135,000 227,516 (92,516) Uniforms/clothing 122,100 122,100 71,783 50,317 CVA expenditures 36,400 36,400 29,284 7,116 LEN grant 10,000 10,000 5,440 4,560 Community policing 34,400 34,400 27,921 6,479 NAPS drug related 20,000 20,000 5,829 14,171 Professional services 26,700 26,700 22,998 3,702 Animal control services 36,800 36,800 7,565 29,235 Special department supplies 100,000 100,000 71,316 28,684 Insurance 83,480 83,480 118,606 (35,126) Capital outlay: Vehicles 70,000 70,000 806,789 (736,789) Machines/equipment 5,000 5,000 21,410 (16,410) Total current public safety 8,729,910 8,729,910 8,697,191 32,719 Total capital outlay public safety 75,000 75,000 828,199 (753,199) Total public safety 8,804,910 8,804,910 9,525,390 (720,480) (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, 2022 69 Expenditures (Continued): Public Works Engineering Personal services: Salaries and wages $ 189,661 $ 189,661 $ 189,105 $ 556 FICA 14,509 14,509 14,020 489 Employee retirement 32,356 32,356 31,993 363 Employee insurance 22,825 22,825 20,880 1,945 Workers' compensation 5,230 5,230 4,117 1,113 Operating expenditures: General supplies/postage 500 500 27 473 Dues/training/travel 3,035 3,035 2,756 279 Auto operating 3,975 3,975 3,563 412 Data processing 7,400 7,400 3,769 3,631 Contracts/repairs 3,500 3,500 3,239 261 Uniforms/clothing 1,000 1,000 992 8 Advertising 100 100 - 100 Professional services 1,000 1,000 - 1,000 Special department supplies 1,500 1,500 378 1,122 Insurance 1,353 1,353 1,433 (80) Total engineering 287,944 287,944 276,272 11,672 Street Lighting and Traffic Signals Operating expenditures: Dues/training/travel 1,350 1,350 - 1,350 Utility services 432,000 432,000 411,057 20,943 Contracts/repairs 3,000 3,000 - 3,000 Special department supplies 40,500 40,500 44,077 (3,577) Insurance 24,753 24,753 26,220 (1,467) Total street lighting and traffic signals 501,603 501,603 481,354 20,249 Streets and Drains Personal services: Salaries and wages 513,256 513,256 482,676 30,580 Overtime pay 8,115 8,115 4,594 3,521 FICA 39,885 39,885 35,766 4,119 Employee retirement 88,946 88,946 82,186 6,760 Employee insurance 91,300 91,300 83,521 7,779 Workers' compensation 14,773 14,773 39,096 (24,323) Operating expenditures: General supplies/postage 1,000 1,000 1,051 (51) Dues/training/travel 2,900 2,900 2,943 (43) Auto operating 44,700 44,700 50,342 (5,642) Contracts/repairs 25,460 25,460 35,282 (9,822) Building materials/supplies 75,000 75,000 58,618 16,382 Uniforms/clothing 9,174 9,174 6,950 2,224 Professional services 19,270 19,270 17,112 2,158 Special department supplies 23,000 23,000 20,413 2,587 Insurance 12,118 12,118 12,836 (718) Capital outlay: Machines/equipment - - 22,211 (22,211) Total streets and drains 968,897 968,897 955,597 13,300 Total current public works 1,758,444 1,758,444 1,691,012 67,432 Total capital outlay public works - - 22,211 (22,211) Total public works 1,758,444 1,758,444 1,713,223 45,221 (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, 2022 Budget Variance with Original 70 Expenditures (Continued): Parks, Recreation, and Tourism Recreation Personal services: Salaries and wages $ 481,775 $ 481,775 $ 461,581 $ 20,194 Overtime pay 10,608 10,608 14,574 (3,966) FICA 37,667 37,667 35,738 1,929 Employee retirement 84,001 84,001 80,443 3,558 Employee insurance 66,400 66,400 60,742 5,658 Workers' compensation 14,154 14,154 11,142 3,012 Operating expenditures: General supplies/postage 2,400 2,400 2,178 222 Dues/training/travel 6,395 6,395 6,779 (384) Auto operating 3,100 3,100 4,729 (1,629) Contracts/repairs 5,500 5,500 4,744 756 Uniforms/clothing 900 900 43 857 Advertising 1,300 1,300 510 790 Professional services 156,000 156,000 189,641 (33,641) Special department supplies 6,000 6,000 13,814 (7,814) Basketball program 17,000 17,000 18,502 (1,502) Softball program 12,500 12,500 27,975 (15,475) Football program 21,000 21,000 58,956 (37,956) Baseball program 28,000 28,000 56,013 (28,013) Soccer program 35,000 35,000 48,007 (13,007) Volleyball program 3,250 3,250 8,308 (5,058) Concession stand supplies 86,000 86,000 141,230 (55,230) Insurance 21,421 21,421 22,704 (1,283) Capital outlay: Furniture/fixtures 2,500 2,500 625 1,875 Total recreation 1,102,871 1,102,871 1,268,978 (166,107) Parks Personal services: Salaries and wages 292,851 292,851 265,630 27,221 Overtime pay 14,851 14,851 20,139 (5,288) FICA 23,539 23,539 20,626 2,913 Employee retirement 52,494 52,494 48,049 4,445 Employee insurance 58,100 58,100 53,149 4,951 Workers' compensation 7,891 7,891 6,352 1,539 Operating expenditures: General supplies/postage 1,500 1,500 - 1,500 Dues/training/travel 1,450 1,450 595 855 Auto operating 13,450 13,450 13,968 (518) Utility services 20,500 20,500 26,445 (5,945) Contracts/repairs 54,880 54,880 56,982 (2,102) Building materials/supplies 13,500 13,500 4,370 9,130 Uniforms/clothing 3,250 3,250 1,689 1,561 Professional services 6,000 6,000 3,563 2,437 Special department supplies 16,000 16,000 15,566 434 Insurance 6,010 6,010 6,366 (356) Capital outlay: Automotive equipment - - 31,445 (31,445) Machines/equipment 7,500 7,500 12,690 (5,190) Total parks 593,766 593,766 587,624 6,142 (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, 2022 Budget Variance with 71 Expenditures (Continued): Parks, Recreation, and Tourism (Continued) Community Center Personal services: Salaries and wages $ 37,524 $ 37,524 $ 36,462 $ 1,062 Overtime pay 3,640 3,640 3,773 (133) FICA 3,149 3,149 3,052 97 Employee retirement 7,023 7,023 6,796 227 Employee insurance 8,300 8,300 7,593 707 Workers' compensation 1,379 1,379 1,086 293 Operating expenditures: General supplies/postage 2,800 2,800 3,287 (487) Dues/training/travel 1,000 1,000 328 672 Auto operating 650 650 103 547 Utility services 23,000 23,000 25,210 (2,210) Contracts/repairs 16,200 16,200 19,473 (3,273) Uniforms/clothing 750 750 - 750 Advertising 2,000 2,000 - 2,000 Professional services 1,000 1,000 104 896 Special department supplies 6,000 6,000 872 5,128 Insurance 3,644 3,644 3,860 (216) Total community center 118,059 118,059 111,999 6,060 RVP Activities Center Personal services: Salaries and wages 301,310 301,310 284,530 16,780 Overtime pay 6,365 6,365 4,554 1,811 FICA 23,537 23,537 21,834 1,703 Employee retirement 52,489 52,489 49,492 2,997 Employee insurance 41,500 41,500 37,964 3,536 Workers' compensation 9,381 9,381 7,385 1,996 Operating expenditures: General supplies/postage 15,500 15,500 16,656 (1,156) Dues/training/travel 1,400 1,400 346 1,054 Auto operating 1,900 1,900 - 1,900 Contracts/repairs 89,900 89,900 105,994 (16,094) Uniforms/clothing 1,400 1,400 985 415 Advertising 2,300 2,300 - 2,300 Tournaments/special events 220,000 220,000 373,467 (153,467) Special department supplies 19,500 19,500 9,379 10,121 Insurance 16,542 16,542 17,522 (980) Capital outlay: Furniture/fixtures 2,500 2,500 1,875 625 Total RVP activities center 805,524 805,524 931,983 (126,459) (Continued) CITY OF NORTH AUGUSTA, SOUTH CAROLINA GENERAL FUND SCHEDULE OF REVENUES AND EXPENDITURES COMPARED WITH BUDGET FOR THE YEAR ENDED DECEMBER 31, 2022 Budget Variance with Original Final Actual Final Budget 72 Expenditures (Continued): Parks, Recreation, and Tourism (Continued) Tourism Personal services: Salaries and wages $ 50,872 $ 50,872 $ 51,071 $ (199) FICA 3,892 3,892 3,937 (45) Employee retirement 8,679 8,679 9,168 (489) Employee insurance 8,300 8,300 7,593 707 Workers' compensation 4,189 4,189 3,298 891 Operating expenditures: General supplies/postage 8,000 8,000 12,725 (4,725) Dues/training/travel 1,000 1,000 1,416 (416) Auto operating 3,500 3,500 10,808 (7,308) Data processing 1,100 1,100 - 1,100 Professional services 2,000 2,000 3,429 (1,429) Tourism events/festivals/supplies 205,000 205,000 118,579 86,421 Special department supplies - - 520 (520) Insurance 9,285 9,285 9,835 (550) Total tourism 305,817 305,817 232,379 73,438 Total current parks, recreation, and tourism 2,913,537 2,913,537 3,086,328 (172,791) Total capital outlay parks, recreation, and tourism 12,500 12,500 46,635 (34,135) Total parks, recreation, and tourism 2,926,037 2,926,037 3,132,963 (206,926) Debt Service: Principal retirement 664,074 664,074 595,144 68,930 Interest and fiscal charges 44,359 44,359 44,359 - Total debt service 708,433 708,433 639,503 68,930 Total expenditures $ 20,725,822 $ 20,725,822 $ 21,163,459 $ (437,637) 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, 2022 Budget Variance with 73 CITY OF NORTH AUGUSTA, SOUTH CAROLINA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS DECEMBER 31, 2022 Total Special Capital Nonmajor Revenue Projects Governmental ASSETS Funds Funds Funds Cash and cash equivalents $ 3,681,573 $ 1,143,606 $ 4,825,179 Intergovernmental receivables 48,516 - 48,516 Total assets $ 3,730,089 $ 1,143,606 $ 4,873,695 LIABILITIES AND FUND BALANCES LIABILITIES Accounts payable $ 109,153 $ 41,832 $ 150,985 Retainage payable - 169,132 169,132 Accrued liabilities 1,597 - 1,597 Total liabilities 110,750 210,964 321,714 FUND BALANCES Restricted: Public safety - fire division 143,855 - 143,855 Special projects 3,475,484 - 3,475,484 Capital projects - 454,741 454,741 Committed: Capital projects - 538,536 538,536 Assigned: Capital projects - 6,606 6,606 Unassigned - (67,241) (67,241) Total fund balances 3,619,339 932,642 4,551,981 Total liabilities, deferred inflows of resources and fund balances $ 3,730,089 $ 1,143,606 $ 4,873,695 74 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, 2022 Total Special Capital Nonmajor Revenue Projects Governmental Funds Funds Funds Revenues: Intergovernmental $ 279,461 $ - $ 279,461 Local hospitality and accommodations taxes 2,664,997 - 2,664,997 Interest earnings 24,101 24,596 48,697 Miscellaneous 297 1,176 1,473 Total revenues 2,968,856 25,772 2,994,628 Expenditures: Current: Public safety 70,045 164,711 234,756 Public works - 5,571 5,571 Parks, recreation & tourism 534,645 - 534,645 Capital outlay 129,966 1,979,508 2,109,474 Total expenditures 734,656 2,149,790 2,884,446 Excess (deficiency) of revenues over (under) expenditures 2,234,200 (2,124,018) 110,182 Other financing uses: Transfers out (1,310,075) - (1,310,075) Total other financing uses (1,310,075) - (1,310,075) Net change in fund balances 924,125 (2,124,018) (1,199,893) Fund balances, beginning of year 2,695,214 3,056,660 5,751,874 Fund balances, end of year $ 3,619,339 $ 932,642 $ 4,551,981 75 Riverfront/Fireman'sFundASSETSCash and cash equivalents $ 332,615 $ 229,137 $ 3,119,821 $ 3,681,573 Intergovernmental receivable 48,516 - - 48,516 Total assets$ 381,131 $ 229,137 $ 3,119,821 $ 3,730,089 LIABILITIES AND FUND BALANCESLIABILITIESAccounts payable $ 8,876 $ 85,282 $ 14,995 $ 109,153 Accrued liabilities- - 1,597 1,597 Total liabilities8,876 85,282 16,592 110,750 FUND BALANCES Restricted: Public safety - fire division- 143,855 - 143,855 Special projects372,255 - 3,103,229 3,475,484 Total fund balances 372,255 143,855 3,103,229 3,619,339 Total liabilities and fund balances $ 381,131 $ 229,137 $ 3,119,821 $ 3,730,089 CITY OF NORTH AUGUSTA, SOUTH CAROLINACOMBINING BALANCE SHEET NONMAJOR SPECIAL REVENUE FUNDS DECEMBER 31, 2022TotalTaxFundSpecial RevenueRedevelopmentFundsFundAccommodations Central Core Nonmajor76 NonmajorCapital ProjectsFundsASSETSCash and cash equivalents $ 77,912 $ 284,411 $ 136,141 $ 548,194 $ 96,948 $ 1,143,606 Total assets $ 77,912 $ 284,411 $ 136,141 $ 548,194 $ 96,948 $ 1,143,606 LIABILITIES AND FUND BALANCESLIABILITIESAccounts payable $ 7,582 $ - $ 34,250 $ - $ - $ 41,832 Retainage payable - - 169,132 - - 169,132 Total liabilities 7,582 - 203,382 - - 210,964 FUND BALANCES Restricted: Capital projects 70,330 284,411 - 100,000 - 454,741 Committed: Capital projects - - - 448,194 90,342 538,536 Assigned: Capital projects - - - - 6,606 6,606 Unassigned - - (67,241) - - (67,241) Total fund balances 70,330 284,411 (67,241) 548,194 96,948 932,642 Total liabilities and fund balances $ 77,912 $ 284,411 $ 136,141 $ 548,194 $ 96,948 $ 1,143,606 FundCITY OF NORTH AUGUSTA, SOUTH CAROLINACOMBINING BALANCE SHEET NONMAJOR CAPITAL PROJECTS FUNDS DECEMBER 31, 2022FundFundImprovementsFundSales TaxStreet TotalTransportation ImprovementSales Tax IIIFundSales Tax II77 Fireman'sFundRevenues:Local hospitality and accommodations taxes$- $- $ 2,664,997 $ 2,664,997 Intergovernmental203,509 75,952- 279,461 Interest earnings3,03951620,54624,101 Miscellaneous- - 297297 Total revenues206,548 76,468 2,685,840 2,968,856 Expenditures:Current:Public safety- 70,045- 70,045 Parks, recreation and tourism139,208- 395,437534,645 Capital outlay- - 129,966129,966 Total expenditures139,208 70,045 525,403 734,656 Excess of revenues over expenditures67,340 6,423 2,160,437 2,234,200 Other financing uses Transfers out- - (1,310,075) (1,310,075) Total other financing uses- - (1,310,075) (1,310,075) Net change in fund balances67,340 6,423 850,362 924,125 Fund balances, beginning of year304,915 137,4322,252,867 2,695,214 Fund balances, end of year$ 372,255 $ 143,855 $ 3,103,229 $ 3,619,339 CITY OF NORTH AUGUSTA, SOUTH CAROLINACOMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCESFOR THE YEAR ENDED DECEMBER 31, 2022NONMAJOR SPECIAL REVENUE FUNDS TotalTaxFundAccommodationsSpecial RevenueNonmajorRiverfront/RedevelopmentFundCentral CoreFunds78 NonmajorCapital ProjectsFundsRevenues:Interest earnings $ 1,621 $ 7,101 $11,302$ 4,121 $451 $ 24,596 Miscellaneous- - 801375- 1,176 Total revenues1,621 7,101 12,103 4,496 451 25,772 Expenditures:Current:Public safety- 164,711- - - 164,711 Public works- - - 5,571- 5,571 Capital outlay39,380- 1,935,5844,544- 1,979,508 Total expenditures39,380 164,711 1,935,584 10,115 - 2,149,790 Net change in fund balances(37,759) (157,610) (1,923,481) (5,619) 451 (2,124,018) Fund balances, beginning of year108,089442,0211,856,240553,81396,4973,056,660 Fund balances, end of year$70,330 $ 284,411 $ (67,241) $ 548,194 $ 96,948 $ 932,642 TotalCITY OF NORTH AUGUSTA, SOUTH CAROLINACOMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCESNONMAJOR CAPITAL PROJECTS FUNDS FOR THE YEAR ENDED DECEMBER 31, 2022Transportation Sales Tax Sales Tax II Improvements ImprovementStreet Sales Tax IIIFund Fund Fund FundFund79 CITY OF NORTH AUGUSTA, SOUTH CAROLINA Budget Actual OPERATING REVENUES Water sales $ 3,350,615 $ 3,451,417 $ 100,802 Sewer sales 6,716,123 6,845,823 129,700 Water tap fees 87,850 222,468 134,618 Sewer tap fees 172,420 286,494 114,074 Fire protection fees 14,014 14,587 573 Other 536,997 545,341 8,344 Total operating revenues 10,878,019 11,366,130 488,111 OPERATING EXPENSES Utilities finance 677,540 684,729 (7,189) Utilities administration 552,864 517,547 35,317 Water operations and maintenance 920,476 747,703 172,773 Water production and treatment 1,616,561 1,570,535 46,026 Wastewater operations and maintenance 5,009,009 4,731,300 277,709 Depreciation and amortization - 1,641,393 (1,641,393) Total operating expenses 8,776,450 9,893,207 (1,116,757) Operating income 2,101,569 1,472,923 (628,646) NONOPERATING REVENUE (EXPENSE) Interest income 20,000 199,451 179,451 Gain on sale of capital assets - 7,860 7,860 Interest expense - (302,789) (302,789) Intergovernmental - 23,515 23,515 Total nonoperating revenues (expenses), net 20,000 (71,963) (91,963) Income before capital contributions and transfers 2,121,569 1,400,960 (720,609) CAPITAL CONTRIBUTIONS - 635,703 635,703 TRANSFERS Transfers in 23,747 229,971 206,224 Transfers out (2,223,599) (840,240) 1,383,359 Total transfers (2,199,852) (610,269) 1,589,583 Change in net position (78,283) 1,426,394 1,504,677 Total net position, beginning of year 64,750,477 64,750,477 - Total net position, end of year $ 64,672,194 $ 66,176,871 $ 1,504,677 WATER AND WASTEWATER SYSTEM FUND SCHEDULE OF REVENUES AND EXPENSES BUDGET AND ACTUAL - GAAP BASIS FOR THE YEAR ENDED DECEMBER 31, 2022 Variance with Budget 80 CITY OF NORTH AUGUSTA, SOUTH CAROLINA Budget Actual OPERATING EXPENSES Utilities Finance Personal services: Salaries and wages $ 230,135 $ 222,098 $ 8,037 FICA 17,605 16,456 1,149 Employee retirement 39,261 27,154 12,107 Employee insurance 41,500 37,964 3,536 Workers' compensation 7,129 5,612 1,517 Other operating expenses: General supplies/postage 101,000 112,302 (11,302) Dues/training/travel 3,200 2,112 1,088 Data processing 148,000 178,067 (30,067) Contracts and repairs 29,000 23,979 5,021 Professional services 15,325 13,166 2,159 Special departmental supplies 500 112 388 Insurance 13,885 14,708 (823) Bad debts 31,000 30,999 1 Total utilities finance 677,540 684,729 (7,189) Utilities Administration: Personal services: Salaries and wages 320,480 321,620 (1,140) Overtime pay 7,734 11,513 (3,779) FICA 25,108 23,499 1,609 Employee retirement 55,993 34,348 21,645 Employee insurance 53,950 49,353 4,597 Workers' compensation 9,900 10,000 (100) Other operating expenses: General supplies 3,341 509 2,832 Dues/training 3,050 2,826 224 Auto operating 14,455 21,977 (7,522) Utility services 10,440 9,937 503 Contracts and repairs 19,760 24,182 (4,422) Building materials 350 - 350 Uniforms and clothing 4,075 1,683 2,392 Professional services 3,422 2,181 1,241 Special departmental supplies 150 150 - Insurance 3,558 3,769 (211) Lease purchase 17,098 - 17,098 Total utilities administration 552,864 517,547 35,317 Water Operations and Maintenance: Personal services: Salaries and wages 406,305 330,566 75,739 Overtime pay 10,096 22,917 (12,821) FICA 31,855 25,687 6,168 Employee retirement 71,038 41,579 29,459 Employee insurance 74,700 68,335 6,365 Workers' compensation 12,599 10,012 2,587 Other operating expenses: Dues/training 2,140 1,356 784 Auto operating 37,836 39,860 (2,024) Contracts and repairs 18,310 19,657 (1,347) Building materials 10,300 14,908 (4,608) Uniforms and clothing 7,335 4,675 2,660 Special departmental supplies 150,250 152,926 (2,676) Insurance 9,653 15,225 (5,572) Lease purchase 44,559 - 44,559 Buildings/fixed equipment 10,000 - 10,000 Clay pump station improvements 23,500 - 23,500 Total water operations and maintenance 920,476 747,703 172,773 (Continued) BUDGET AND ACTUAL - GAAP BASIS FOR THE YEAR ENDED DECEMBER 31, 2022 SCHEDULE OF OPERATING EXPENSES Variance with Budget WATER AND WASTEWATER SYSTEM FUND 81 CITY OF NORTH AUGUSTA, SOUTH CAROLINA Budget Actual OPERATING EXPENSES (CONTINUED) Water Production and Treatment: Personal services: Salaries and wages $ 470,190 $ 475,580 $ (5,390) Overtime pay 26,222 33,024 (6,802) FICA 37,976 36,136 1,840 Employee retirement 84,688 56,771 27,917 Employee insurance 66,400 60,742 5,658 Workers' compensation 14,986 11,797 3,189 Other operating expenses: General supplies 2,430 1,476 954 Dues/training/travel 3,750 6,273 (2,523) Auto operating 5,650 4,537 1,113 Utility services 343,285 418,372 (75,087) Contracts and repairs 165,375 138,551 26,824 Building materials 950 899 51 Uniforms and clothing 6,400 2,227 4,173 Professional services 40,741 40,499 242 Special departmental supplies 198,825 229,777 (30,952) ACPSA treatment charges 3,000 2,623 377 Insurance 48,383 51,251 (2,868) Lease purchase 57,010 - 57,010 Machines/equipment 40,300 - 40,300 Total water production and treatment 1,616,561 1,570,535 46,026 Wastewater Operations and Maintenance: Personal services: Salaries and wages 491,433 421,014 70,419 Overtime pay 18,080 21,189 (3,109) FICA 38,978 32,245 6,733 Employee retirement 86,923 49,089 37,834 Employee insurance 91,300 83,518 7,782 Workers' compensation 16,028 12,692 3,336 Other operating expenses: Dues/training/travel 700 753 (53) Auto operating 32,555 41,383 (8,828) Utility services 64,884 76,302 (11,418) Contracts and repairs 72,900 82,431 (9,531) Building materials 10,950 14,510 (3,560) Uniforms and clothing 8,150 4,222 3,928 Professional services - 7,603 (7,603) Special departmental supplies 18,220 17,966 254 ACPSA treatment charges 3,892,591 3,844,147 48,444 Lease purchase 146,317 - 146,317 Insurance 19,000 22,236 (3,236) Total wastewater operations and maintenance 5,009,009 4,731,300 277,709 Depreciation and amortization - 1,641,393 (1,641,393) Total operating expenses $ 8,776,450 $ 9,893,207 $ (1,116,757) Variance with Budget BUDGET AND ACTUAL - GAAP BASIS FOR THE YEAR ENDED DECEMBER 31, 2022 WATER AND WASTEWATER SYSTEM FUND SCHEDULE OF OPERATING EXPENSES 82 CITY OF NORTH AUGUSTA, SOUTH CAROLINA Budget Actual OPERATING REVENUES Stormwater utility fees $ 838,500 $ 860,588 $ 22,088 Other 12,354 20,956 8,602 Total operating revenues 850,854 881,544 30,690 OPERATING EXPENSES Stormwater operations 825,262 622,155 203,107 Depreciation - 329,708 (329,708) Total operating expenses 825,262 951,863 (126,601) Operating income (loss)25,592 (70,319) (95,911) NONOPERATING REVENUE (EXPENSES) Interest income 2,000 11,960 9,960 Interest expense - (3,493) (3,493) Intergovernmental - 73,500 73,500 Total nonoperating revenues, net 2,000 81,967 79,967 Income before capital contributions and transfers 27,592 11,648 (15,944) CAPITAL CONTRIBUTIONS - 457,670 457,670 TRANSFERS Transfers in 2,043 2,043 - Transfers out (29,635) (29,635) - Total transfers (27,592) (27,592) - Change in net position - 441,726 441,726 Total net position, beginning of year 7,123,193 7,123,193 - Total net position, end of year $ 7,123,193 $ 7,564,919 $ 441,726 Variance with Budget STORMWATER UTILITY FUND SCHEDULE OF REVENUES AND EXPENSES BUDGET AND ACTUAL - GAAP BASIS FOR THE YEAR ENDED DECEMBER 31, 2022 83 CITY OF NORTH AUGUSTA, SOUTH CAROLINA Budget Actual OPERATING EXPENSES Personal services: Salaries and wages $ 389,644 $ 387,708 $ 1,936 Overtime pay 1,948 2,774 (826) FICA 29,957 29,103 854 Employee retirement 66,806 43,511 23,295 Employee insurance 51,875 47,455 4,420 Workers' compensation 12,680 9,982 2,698 Other operating expenses: General supplies 800 452 348 Dues/training 5,760 6,086 (326) Auto operating 11,300 15,911 (4,611) Data processing 15,500 18,973 (3,473) Contracts and repairs 8,240 6,157 2,083 Uniforms and clothing 3,150 3,039 111 Advertising 4,300 2,355 1,945 Professional services 31,233 36,586 (5,353) Special departmental supplies 5,400 6,092 (692) Insurance 5,637 5,971 (334) Leases 54,010 - 54,010 Drainage projects 127,022 - 127,022 Total stormwater operations 825,262 622,155 203,107 Depreciation - 329,708 (329,708) Total operating expenses $ 825,262 $ 951,863 $ (126,601) Budget Variance with STORMWATER UTILITY FUND SCHEDULE OF OPERATING EXPENSES BUDGET AND ACTUAL - GAAP BASIS FOR THE YEAR ENDED DECEMBER 31, 2022 84 CITY OF NORTH AUGUSTA, SOUTH CAROLINA Budget Actual OPERATING REVENUES Sanitation service fees $ 3,679,440 $ 3,788,106 $ 108,666 Recycling fees 1,304,330 108,119 (1,196,211) Sale of recyclables 157,180 107,590 (49,590) Other 51,236 1,809,135 1,757,899 Total operating revenues 5,192,186 5,812,950 620,764 OPERATING EXPENSES Sanitation operations 2,967,435 2,714,056 253,379 Material recovery facility 1,744,757 804,601 940,156 Depreciation 94,451 526,184 (431,733) Total operating expenses 4,806,643 4,044,841 761,802 Operating income 385,543 1,768,109 1,382,566 NONOPERATING REVENUE (EXPENSES) Interest income 7,000 76,371 69,371 Loss on sale of property - (8,796) (8,796) Interest expense - (9,489) (9,489) Total nonoperating revenues, net 7,000 58,086 51,086 Income before transfers 392,543 1,826,195 1,433,652 TRANSFERS Transfers in 8,505 8,505 - Transfers out (401,048) (401,048) - Total transfers (392,543) (392,543) - Change in net position - 1,433,652 1,433,652 Total net position, beginning of year 1,800,864 1,800,864 - Total net position, end of year $ 1,800,864 $ 3,234,516 $ 1,433,652 Variance with Budget SCHEDULE OF OPERATING REVENUES AND EXPENSES SANITATION SERVICES FUND BUDGET AND ACTUAL - GAAP BASIS FOR THE YEAR ENDED DECEMBER 31, 2022 85 CITY OF NORTH AUGUSTA, SOUTH CAROLINA Budget Actual OPERATING EXPENSES Sanitation Operations Personal services: Salaries and wages $ 1,208,982 $ 1,086,819 $ 122,163 Overtime pay 15,326 31,050 (15,724) FICA 93,660 81,923 11,737 Employee retirement 208,867 129,020 79,847 Employee insurance 219,950 201,209 18,741 Workers' compensation 37,332 37,955 (623) Other operating expenses: General supplies 1,520 1,476 44 Dues/training 900 300 600 Auto operating 389,930 636,999 (247,069) Utility services 23,000 28,807 (5,807) Data processing 22,400 27,406 (5,006) Contracts and repairs 11,615 7,663 3,952 Uniforms and clothing 21,355 11,074 10,281 Professional services 8,134 7,206 928 Special departmental supplies 285,004 366,394 (81,390) Insurance 55,344 58,755 (3,411) Leases 364,116 - 364,116 Total sanitation operations 2,967,435 2,714,056 253,379 Material Recovery Facility Personal services: Salaries and wages 420,819 299,379 121,440 Overtime pay 12,638 2,883 9,755 FICA 33,159 21,829 11,330 Employee retirement 73,948 33,886 40,062 Employee insurance 70,550 64,539 6,011 Workers' compensation 12,889 17,561 (4,672) Other operating expenses: General supplies 400 339 61 Dues/training 655 - 655 Auto operating 108,528 80,237 28,291 Utility services 13,230 7,967 5,263 Contracts and repairs 86,180 100,371 (14,191) Building material 500 - 500 Recycling expenses 1,000 - 1,000 Uniforms and clothing 6,350 3,441 2,909 Professional services 177,120 91,314 85,806 Special departmental supplies 496,788 16,459 480,329 Insurance 60,476 64,396 (3,920) Leases 154,527 - 154,527 Automotive equipment 15,000 - 15,000 Total material recovery facility 1,744,757 804,601 940,156 Depreciation 94,451 526,184 (431,733) Total operating expenses $ 4,806,643 $ 4,044,841 $ 761,802 Budget Variance with FOR THE YEAR ENDED DECEMBER 31, 2022 SCHEDULE OF OPERATING EXPENSES BUDGET AND ACTUAL - GAAP BASIS SANITATION SERVICES FUND 86 CITY OF NORTH AUGUSTA, SOUTH CAROLINA UNIFORM SCHEDULE OF COURT FINES, ASSESSMENTS AND SURCHARGES (per ACT 96) FOR THE YEAR ENDED DECEMBER 31, 2022 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 $ 818,468 $ 818,468 Court fines and assessments remitted to State Treasurer N/A N/A 447,781 447,781 Total Court Fines and Assessments retained N/A N/A $ 370,687 $ 370,687 Surcharges and Assessments retained for victim services: Surcharges collected and retained N/A N/A $ 4,315 $ 4,315 Assessments retained N/A N/A 38,004 38,004 Total Surcharges and Assessments retained for victim services N/A N/A $ 42,319 $ 42,319 FOR THE DEPARTMENT OF CRIME VICTIM COMPENSATION (DCVC) Municipal County Total $ 123,331 N/A $ 123,331 - N/A - 38,004 N/A 38,004 4,315 N/A 4,315 - N/A - - N/A - - N/A - - N/A - - N/A - - N/A - $ 165,650 N/A $ 165,650 (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 87 CITY OF NORTH AUGUSTA, SOUTH CAROLINA UNIFORM SCHEDULE OF COURT FINES, ASSESSMENTS AND SURCHARGES (per ACT 96) FOR THE YEAR ENDED DECEMBER 31, 2022 Municipal County Total $ 9,394 N/A $ 9,394 7,284 N/A 7,284 - N/A - - N/A - 11,000 N/A 11,000 - N/A - 11,000 N/A 11,000 - N/A - 38,678 N/A 38,678 126,972 N/A 126,972 - N/A - $ 126,972 N/A $ 126,972 (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 88 STATISTICAL SECTION North CpAugusta South Carolina's Riuerfront 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 .......................................................................................................................................... 89 - 93 These schedules contain trend information to help the reader understand how the City’s financial performance and well-being have changed over time. Revenue Capacity ...................................................................................................................................... 94 - 100 These schedules contain information to help the reader assess the City’s most significant local revenue source, the property tax. Debt Capacity ........................................................................................................................................... 101 - 105 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 ............................................................................................. 106 - 108 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 ............................................................................................................................. 109 - 112 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. 2013 2014 2015 2016 2017 Governmental activities Net investment in capital assets 53,791,597$ 57,779,457$ 59,649,524$ 60,261,553$ 46,115,747$ Restricted 7,810,702 7,536,710 6,964,338 7,616,189 23,744,254 Unrestricted 5,466,773 4,267,933 (6,848,500) (5,705,943) (5,641,833) Total governmental activities net position 67,069,072$ 69,584,100$ 59,765,362$ 62,171,799$ 64,218,168$ Business-type activities Net investment in capital assets 47,734,609$ 51,802,542$ 53,610,839$ 53,203,765$ 55,927,179$ Restricted 10,104,431 9,883,717 10,248,230 11,374,284 9,618,737 Unrestricted 7,777,449 6,767,765 (1,175,007) (387,763) 492,016 Total business-type activities net position 65,616,489$ 68,454,024$ 62,684,062$ 64,190,286$ 66,037,932$ Primary Government Net investment in capital assets 101,526,206$ 109,581,999$ 113,260,363$ 113,465,318$ 102,042,926$ Restricted 17,915,133 17,420,427 17,212,568 18,990,473 33,362,991 Unrestricted 13,244,222 11,035,698 (8,023,507) (6,093,706) (5,149,817) Total primary government net position 132,685,561$ 138,038,124$ 122,449,424$ 126,362,085$ 130,256,100$ 2018 2019 2020 2021 2022 Governmental activities Net investment in capital assets 65,640,358$ 64,540,113$ 64,277,060$ 54,204,071$ 56,753,022$ Restricted 6,574,221 8,729,598 7,848,687 19,786,412 19,633,892 Unrestricted (7,354,106) (9,984,502) (9,345,838) (7,117,195) (5,303,954) Total governmental activities net position 64,860,473$ 63,285,209$ 62,779,909$ 66,873,288$ 71,082,960$ Business-type activities Net investment in capital assets 58,580,045$ 60,703,383$ 61,930,753$ 62,504,303$ 63,792,267$ Restricted 7,977,008 8,433,456 8,358,324 8,481,549 8,437,860 Unrestricted 1,215,467 1,431,160 1,855,707 3,230,474 5,271,343 Total business-type activities net position 67,772,520$ 70,567,999$ 72,144,784$ 74,216,326$ 77,501,470$ Primary Government Net investment in capital assets 124,220,403$ 125,243,496$ 126,207,813$ 116,708,374$ 120,545,289$ Restricted 14,551,229 17,163,054 16,207,011 28,267,961 28,071,752 Unrestricted (6,138,639) (8,553,342) (7,490,131) (3,886,721) (32,611) Total primary government net position 132,632,993$ 133,853,208$ 134,924,693$ 141,089,614$ 148,584,430$ 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 $18,624,474 was required to reflect implementation. City of North Augusta, South Carolina Net Position by Component Last Ten Fiscal Years (accrual basis of accounting) Year Ending December 31 Year Ending December 31 89 2013 2014 2015 2016 2017 Expenses Governmental activities: General government 3,893,288$ 4,181,576$ 4,573,665$ 4,519,094$ 7,474,923$ Public safety 6,615,699 7,232,466 7,517,589 8,473,548 8,736,202 Public works 2,609,477 2,348,897 2,051,542 580,327 2,695,126 Parks, recreation, and tourism 4,212,673 4,501,259 4,723,035 5,061,480 4,913,582 Debt service - interest and fees 313,866 163,147 168,583 155,047 338,132 Loss on debt defeasance 277,682 - - - Total governmental activities expenses 17,645,003$ 18,427,345$ 19,034,414$ 18,789,496$ 24,157,965$ Business-type activities: Water and wastewater 7,491,321$ 7,420,051$ 8,081,456$ 7,745,232$ 8,359,555$ Sanitation 3,376,614 3,958,515 4,316,548 4,594,016 4,536,142 Stormwater utility 826,121 507,555 494,179 541,495 638,634 Savannah Bluff Lock and Dam 24,000 24,000 24,000 24,000 24,000 Total business-type activities expenses 11,718,056$ 11,910,121$ 12,916,183$ 12,904,743$ 13,558,331$ Total primary government expenses 29,363,059$ 30,337,466$ 31,950,597$ 31,694,239$ 37,716,296$ Program Revenues Governmental activities: Charges for services: General government 4,892,172$ 5,272,149$ 5,621,613$ 5,885,657$ 6,229,497$ Public safety 1,055,155 1,109,022 1,195,544 1,060,102 1,041,202 Public Works 60,381 62,664 65,907 78,018 158,147 Parks, recreation, and tourism 1,058,841 1,090,469 1,162,485 1,260,024 1,148,108 Operating grants and contributions 811,914 1,433,764 872,652 791,316 1,083,944 Capital grants and contributions 1,357,083 468,934 - - 207,768 Total governmental activities program revenues 9,235,546$ 9,437,002$ 8,918,201$ 9,075,117$ 9,868,666$ Business-type activities: Charges for services: Water and wastewater 8,564,524$ 8,800,125$ 8,664,457$ 9,155,898$ 9,459,054$ Sanitation 3,647,518 4,163,934 4,168,309 4,246,959 4,472,281 Stormwater utility 575,233 584,566 746,814 759,131 770,135 Operating grants and contributions - 264,747 2,449 - 10,161 Capital grants and contributions 220,936 618,036 396,837 124,408 103,591 Total business-type activities program revenues 13,008,211$ 14,431,408$ 13,978,866$ 14,286,396$ 14,815,222$ Total primary government program revenues 22,243,757$ 23,868,410$ 22,897,067$ 23,361,513$ 24,683,888$ Net (expense) / revenue Governmental activities (8,409,457)$ (8,990,343)$ (10,116,213)$ (9,714,379)$ (14,289,299)$ Business-type activities 1,290,155 2,521,287 1,062,683 1,381,653 1,256,891 Total primary government net expense (7,119,302)$ (6,469,056)$ (9,053,530)$ (8,332,726)$ (13,032,408)$ General Revenues and Other Changes in Net Position Governmental activities: Ad valorem property taxes 6,858,860$ 6,993,684$ 6,874,139$ 7,162,650$ 8,146,680$ Capital projects sales taxes 1,180,511 2,733,613 2,828,301 2,891,291 3,109,712 Local hospitality and accommodations taxes 622,971 661,531 713,903 764,056 790,749 Interest on investments 70,768 69,440 89,791 192,906 423,369 Gain(loss) on disposal of capital assets - - (3,311) - - Miscellaneous 631,662 696,936 886,062 568,970 3,659,328 Transfers 657,011 378,848 514,893 540,943 205,830 Total governmental activities 10,021,783$ 11,534,052$ 11,903,778$ 12,120,816$ 16,335,668$ Business-type activities: Interest on investments 48,450$ 50,735$ 69,410$ 120,990$ 145,025$ Gain(loss) on disposal of capital assets - - 46,107 (12,606) 78,747 Miscellaneous 561,746 644,361 584,902 557,130 572,813 Transfers (657,011) (378,848) (514,893) (540,943) (205,830) Total business-type activities (46,815)$ 316,248$ 185,526$ 124,571$ 590,755$ Total primary government 9,974,968$ 11,850,300$ 12,089,304$ 12,245,387$ 16,926,423$ Change in Net Position Governmental activities 1,612,326$ 2,543,709$ 1,787,565$ 2,406,437$ 2,046,369$ Business-type activities 1,243,340 2,837,535 1,248,209 1,506,224 1,847,646 Total primary government 2,855,666$ 5,381,244$ 3,035,774$ 3,912,661$ 3,894,015$ (continued) (accrual basis of accounting) Year Ending December 31 City of North Augusta, South Carolina Changes in Net Position Last Ten Fiscal Years 90 2018 2019 2020 2021 2022 Expenses Governmental activities: General government 8,855,053$ 11,607,797$ 7,870,452$ 8,020,594$ 8,978,242$ Public safety 9,253,259 9,079,791 9,539,596 8,713,621 9,625,999 Public works 2,736,631 2,936,592 2,924,751 2,952,922 3,167,850 Parks, recreation, and tourism 3,785,041 4,212,339 3,371,009 4,197,184 4,454,887 Debt service - interest and fees 1,568 276,699 3,447,465 3,347,376 3,338,117 Total governmental activities expenses 24,631,552$ 28,113,218$ 27,153,273$ 27,231,697$ 29,565,095$ Business-type activities: Water and wastewater 8,896,535$ 10,077,290$ 10,410,462$ 10,164,461$ 10,195,996$ Sanitation 4,624,936 4,733,146 4,626,296 4,479,166 4,063,126 Stormwater utility 661,987 789,312 840,358 883,357 955,356 Savannah Bluff Lock and Dam utility 23,999 24,000 192,673 133,970 26,000 Total business-type activities expenses 14,207,457$ 15,623,748$ 16,069,789$ 15,660,954$ 15,240,478$ Total primary government expenses 38,839,009$ 43,736,966$ 43,223,062$ 42,892,651$ 44,805,573$ Program Revenues Governmental activities: Charges for services: General government 6,361,953$ 6,256,452$ 6,420,926$ 6,868,596$ 7,154,304$ Public safety 892,138 1,044,181 911,851 895,682 869,174 Public Works 167,961 108,726 85,435 93,392 99,378 Parks, recreation, and tourism 1,829,789 2,096,008 1,091,763 2,158,381 2,127,533 Operating grants and contributions 1,377,317 1,265,522 1,287,442 960,878 2,316,342 Capital grants and contributions - 759,852 1,788,037 2,199,191 639,030 Total governmental activities program revenues 10,629,158$ 11,530,741$ 11,585,454$ 13,176,120$ 13,205,761$ Business-type activities: Charges for services: Water and wastewater 9,746,927$ 10,151,786$ 10,666,159$ 11,159,227$ 10,844,304$ Sanitation 4,355,688 4,487,564 4,862,277 4,791,306 4,003,815 Stormwater utility 782,958 804,213 821,127 837,701 860,588 Operating grants and contributions 80,636 23,516 - - - Capital grants and contributions 23,514 616,830 1,325,388 1,332,381 1,166,873 Total business-type activities program revenues 14,989,723$ 16,083,909$ 17,674,951$ 18,120,615$ 16,875,580$ Total primary government program revenues 25,618,881$ 27,614,650$ 29,260,405$ 31,296,735$ 30,081,341$ Net (expense) / revenue Governmental activities (14,002,394)$ (16,582,477)$ (15,567,819)$ (14,055,577)$ (16,359,334)$ Business-type activities 782,266 460,161 1,605,162 2,459,661 1,635,102 Total primary government net expense (13,220,128)$ (16,122,316)$ (13,962,657)$ (11,595,916)$ (14,724,232)$ General Revenues and Other Changes in Net Position Governmental activities: Ad valorem property taxes 8,143,925$ 8,456,230$ 10,632,768$ 11,382,532$ 13,122,687$ Capital projects sales taxes 3,179,463 1,443,301 176,864 1,770,110 1,770,261 Local hospitality and accommodations taxes 1,718,195 2,017,221 1,830,571 2,385,218 2,664,997 Interest on investments 400,007 330,669 168,087 62,950 508,037 Gain(loss) on disposal of capital assets 9,441 31,203 - - - Miscellaneous 1,024,414 1,005,944 1,095,995 1,329,329 1,472,620 Transfers 169,254 748,347 1,158,234 1,218,817 1,030,404 Total governmental activities 14,644,699$ 14,032,915$ 15,062,519$ 18,148,956$ 20,569,006$ Business-type activities: Interest on investments 281,451$ 327,680$ 127,876$ 35,498$ 297,154$ Gain(loss) on disposal of capital assets 55,180 465 56,065 95,281 7,860 Miscellaneous 784,945 631,468 945,916 699,919 2,375,432 Transfers (169,254) (748,347) (1,158,234) (1,218,817) (1,030,404) Total business-type activities 952,322$ 211,266$ (28,377)$ (388,119)$ 1,650,042$ Total primary government 15,597,021$ 14,244,181$ 15,034,142$ 17,760,837$ 22,219,048$ Change in Net Position Governmental activities 642,305$ (2,549,562)$ (505,300)$ 4,093,379$ 4,209,672$ Business-type activities 1,734,588 671,427 1,576,785 2,071,542 3,285,144 Total primary government 2,376,893$ (1,878,135)$ 1,071,485$ 6,164,921$ 7,494,816$ City of North Augusta, South Carolina Changes in Net Position Last Ten Fiscal Years (accrual basis of accounting) Year Ending December 31 91 2013 2014 2015 2016 2017 General Fund Nonspendable 1,630$ 1,774$ -$ -$ -$ Restricted 32,841 60,140 88,746 103,644 107,443 Committed 966,050 1,073,650 796,106 1,484,194 1,121,426 Unassigned - - 2,375,000 2,475,000 2,625,000 Total General Fund 1,000,521$ 1,135,564$ 3,259,852$ 4,062,838$ 3,853,869$ All Other Governmental Funds Reserved -$ 6,746,666$ -$ -$ -$ Restricted 7,065,591 2,114,554 5,790,157 7,512,545 23,636,811 Committed 1,534,983 2,489,051 2,184,346 2,950,803 3,731,713 Assigned 4,234,929 (188,988) 1,261,269 428,854 367,043 Unassigned - - (69,258) - - Total all other governmental funds 12,835,503$ 11,161,283$ 9,166,514$ 10,892,202$ 27,735,567$ 2018 2019 2020 2021 2022 General Fund Restricted 111,049$ 115,225$ 119,094$ 123,331$ 126,972$ Committed 937,499 433,393 689,671 2,834,351 2,174,623 Unassigned 2,825,000 2,875,000 3,000,000 3,125,000 3,350,000 Total General Fund 3,873,548$ 3,423,618$ 3,808,765$ 6,082,682$ 5,651,595$ All Other Governmental Funds Restricted 10,531,546$ 9,423,502$ 17,733,705$ 19,663,081$ 19,506,920$ Committed 2,669,258 2,737,813 2,980,435 3,398,961 5,364,974 Assigned 344,403 34,138 5,837 6,155 6,606 Unassigned - - - - (67,241) Total all other governmental funds 13,545,207$ 12,195,453$ 20,719,977$ 23,068,197$ 24,811,259$ Year Ending December 31 Year Ending December 31 City of North Augusta, South Carolina Fund Balances, Governmental Funds Last Ten Fiscal Years (modified accrual basis of accounting) 92 2013 2014 2015 2016 2017 Revenues Ad valorem taxes 6,858,860$ 6,993,526$ 6,871,821$ 7,163,429$ 7,446,013$ Sales taxes 1,180,511 2,733,613 2,828,301 2,891,291 3,109,712 Local hospitality and accommodations taxes 622,971 661,531 713,903 764,056 790,749 Licenses and permits 4,892,172 5,272,149 5,621,613 5,885,657 6,229,497 Fines and forfeitures 991,039 1,044,648 1,138,891 996,799 978,626 Charges for services 1,122,957 1,154,843 1,285,045 1,401,345 1,291,321 Intergovernmental 1,141,759 1,187,485 872,652 791,316 4,179,592 Miscellaneous/interest earnings 697,191 747,304 977,123 781,035 1,000,276 Contributions 1,000 368,500 - - - Total Revenues 17,508,460$ 20,163,599$ 20,309,349$ 20,674,928$ 25,025,786$ ExpendituresGeneral government 3,302,811$ 3,704,832$ 4,028,393$ 3,712,733$ 3,406,445$ Public safety 6,058,506 6,630,196 7,833,279 7,990,705 7,921,809 Public works 1,157,668 1,344,015 1,487,619 1,394,286 1,515,323 Parks, recreation and tourism 3,141,942 3,391,470 3,647,665 4,022,934 4,085,589 Capital outlay 1,353,010 6,269,988 13,260,678 1,790,360 45,762,352 Debt service: Capital lease payments 4,117,682 747,764 897,952 929,907 3,991,122 Interest and fiscal charges 599,101 179,035 164,947 155,047 1,712,670 Principal Retirements - - - - 12,573,657 (b) Bond Issuance Costs - - - - 1,495,554 Total Expenditures 19,730,720$ 22,267,300$ 31,320,533$ 19,995,972$ 82,464,521$ Excess (deficiency) of revenues over (under) expenditures (2,222,260)$ (2,103,701)$ (11,011,184)$ 678,956$ (57,438,735)$ Other financing sources (uses)Proceeds on sale of capital assets -$ 26,191$ -$ -$ -$ Issuance of capital lease 309,494 312,249 887,594 880,655 473,983 Lease issuance cost - - 9,738,217 428,120 71,882,320 Issuance of bonds - - - - 178,260 (a)Transfers in 1,691,350 3,253,841 23,350,453 1,397,258 10,699,613 Transfers out (1,045,159) (2,874,993) (22,835,560) (856,315) (9,161,045) Total other financing sources (uses)955,685$ 717,288$ 11,140,704$ 1,849,718$ 74,073,131$ Net change in fund balance (1,266,575)$ (1,386,413)$ 129,520$ 2,528,674$ 16,634,396$ Debt service as a percentage of noncapital expenditures 24.83% 5.77% 6.42% 7.03% 54.73%(b) 2018 2019 2020 2021 2022 RevenuesAd valorem taxes 8,018,222$ 8,404,331$ 9,655,624$ 12,220,170$ 12,932,274$ Sales taxes 3,179,463 2,235,581 176,864 1,770,110 1,770,261 Local hospitality and accommodations taxes 1,718,195 2,017,221 1,830,571 2,385,218 2,664,997 Licenses and permits 6,361,953 6,256,452 6,420,926 6,868,596 7,154,304 Fines and forfeitures 834,200 1,006,060 872,727 854,434 828,347 Charges for services 1,974,016 2,226,219 1,216,322 2,293,021 2,267,738 Intergovernmental 1,899,080 1,569,665 1,452,465 1,168,208 2,729,348 Miscellaneous/interest earnings 1,068,804 1,111,636 1,157,925 1,237,945 1,813,821 Total Revenues 25,053,933$ 24,827,165$ 22,783,424$ 28,797,702$ 32,161,090$ ExpendituresGeneral government 4,759,360$ 5,751,630$ 5,503,855$ 5,849,145$ 6,864,168$ Public safety 8,379,644 8,932,323 8,058,484 7,986,178 8,931,947 Public works 1,594,271 1,728,518 1,520,495 1,553,477 1,696,583 Parks, recreation and tourism 3,043,122 3,278,290 2,500,187 3,353,253 3,641,616 Capital outlay 18,736,157 4,909,427 3,747,567 3,287,647 4,988,864 Debt service: Capital lease payments 619,864 731,955 711,865 702,138 Interest and fiscal charges 3,217,755 3,217,751 3,273,533 3,325,369 3,348,840 Principal Retirements - - 650,000 739,968 3,184,079 Bond Issuance Costs - - 88,947 - - Total Expenditures 40,350,173$ 28,549,894$ 26,054,933$ 26,797,175$ 32,656,097$ Excess (deficiency) of revenues over (under) expenditures (15,296,240)$ (3,722,729)$ (3,271,509)$ 2,000,527$ (495,007)$ Other financing sources (uses) Issuance of capital lease 432,308 838,111 772,946 1,405,126 776,578 Issuance of bonds - - 10,250,000 (c)- - Transfers in 4,538,136 3,825,974 4,380,329 6,103,845 9,568,234 Transfers out (3,844,885) (2,741,040) (3,222,095) (4,887,361) (8,537,830) Total other financing sources (uses)1,125,559$ 1,923,045$ 12,181,180$ 2,621,610$ 1,806,982$ Net change in fund balance (14,170,681)$ (1,799,684)$ 8,909,671$ 4,622,137$ 1,311,975$ Debt service as a percentage of noncapital expenditures 18.18% 18.09% 20.78% 20.28% 23.61% (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 $10,250,000 for the purposes of defraying the costs incurred in connection with all or a portion of designing, developing, and construction of a new Public Safety Headquarters and related fire apparatus. Year Ending December 31 (modified accrual basis of accounting) Year Ending December 31 City of North Augusta, South Carolina Changes in Fund Balances, Governmental FundsLast Ten Fiscal Years 93 Year Ended December 31 (a) Tax Year Assessed Value Estimated Actual Value Assessed Value Estimated Actual Value Assessed Value Estimated Actual Value Tax Rate 2013 2012 68,404,348$ 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 1,601,776,784 74.21 2016 2015 73,065,987 1,490,975,824 21,623,421 163,697,703 94,689,408 1,654,673,527 74.21 2017 (b) 2016 79,819,959 1,628,796,572 26,336,665 199,378,793 106,156,624 1,828,175,365 70.50 2018 2017 82,341,248 1,680,245,695 27,375,296 207,241,635 109,716,544 1,887,487,329 73.50 2019 2018 83,448,499 1,702,840,127 31,654,277 239,635,179 115,102,776 1,942,475,306 73.50 2020 2019 111,102,458 (c)2,267,143,519 33,204,209 251,368,768 144,306,667 2,518,512,288 73.50 2021 2020 114,076,665 (c)2,327,834,832 40,594,219 307,314,022 154,670,884 2,635,148,855 73.50 2022 2021 128,916,969 (c)2,630,664,307 47,567,398 360,103,698 176,484,367 2,990,768,006 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 assessments in the MID totals $118,416,855. (a) The City of North Augusta uses different tax years for real and personal property taxes because on April 30, 1980, the S.C. General Assembly passed a law that provided for the billing and collection of personal property taxes on motor vehicles on a staggered basis according to expiration of the license tag. City of North Augusta, South 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 94 Fiscal Year Ended December 31 (a) Tax Year Operating Millage Debt Service Millage (b) Total City Millage Operating Millage Debt Service Millage Total County Millage Operating Millage Debt Service Millage Total School Millage Total Direct & Overlapping Rates 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 2022 2022 73.50 -73.50 65.10 2.20 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 $1,000 of assessed valuation Tax Rate Limits: None Taxes Due: Personal: In the month preceding tag renewal by the S.C. State Highway Department Real and Merchants: April 30th Personal: N/A--Taxes on personal property paid in advance Taxes Delinquent: Real and Merchants: May 1st Discount Allowed: None Penalties: Real and Merchants: 15% Reassessment Years: Tax Years 2016, 2021 Uncollected taxes are turned over to the City Delinquent Tax Collector on June 1st, with authority to enforce collection by tax sale. (a) Because of the change mandated by State law noted in the footnote of Table V, the City of North Augusta uses different tax years for real and personal property taxes. City of North Augusta, South Carolina Direct and Overlapping Property Tax Rates Last Ten Fiscal Years City of North Augusta Overlapping Property Tax Rates County of Aiken Aiken County School District 95 2022 2013 Taxpayer Assessed Valuation (b) Rank Percentage of Total Assessed Valuation Assessed Valuation Rank Percentage of Total Assessed Valuation S. C. Electric & Gas Co. 3,422,270$ 1 1.94% 2,550,700$ 1 2.92% Graybul Ironwood LLC 2,700,450 2 1.53% Wal-Mart, Inc. 2,651,680 3 1.50% 1,209,990 4 1.38% Allnex Industries, Inc. (a)2,366,530 4 1.34% 1,412,350 2 1.62% Ackerman Greenstone North Augusta 2,212,620 5 1.25% Halocarbon Chemicals, Inc. 1,455,610 7 0.82% 1,075,670 6 1.23% SUSO 3 Augusta, LP 1,181,730 6 0.67% SRP Federal Credit Union 980,390 8 0.56% 1,249,020 3 1.43% CVS SC Distribution, Inc. 978,570 9 0.55% 626,630 8 0.72% Next Chapter Sweetwater LLC 837,530 10 0.47% North Augusta Plaza SC, LLC 1,087,920 5 1.24% The Kroger Company 798,270 7 0.91% Bell South Telecommunications 600,160 9 0.69% Lowes Home Centers, Inc.482,140 10 0.55% TOTAL Taxable Assessed 18,787,380$ 10.65% 11,092,850$ 12.69% 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 96 Year Ended December 31 (b) Tax Year (a) Taxes Levied for the Fiscal Year Amount Percentage of Levy Collections in Subsequent Years Amount Percentage of Levy 2013 2012 6,488,677$ 6,446,489$ 99.35% 24,153$ 6,470,642$ 99.72% 2014 2013 6,597,073 6,565,216 99.52% 16,183 6,581,399 99.76% 2015 2014 6,804,705 6,762,260 99.38% 23,764 6,786,024 99.73% 2016 2015 $7,026,901 $6,992,988 99.52% 14,094 7,007,082 99.72% 2017 (c) 2016 7,484,042 7,446,013 99.49%11,514 7,457,527 99.65% 2018 2017 8,064,166 8,018,222 99.43%18,865 8,037,087 99.66% 2019 2018 $8,460,054 8,404,331 99.34%19,870 8,424,201 99.58% 2020 2019 10,606,540 9,655,624 91.03%904,305 10,559,929 99.56% 2021 2020 11,368,310 11,326,981 99.64%12,761 11,339,742 99.75% 2022 (c) 2021 12,971,601 12,883,770 99.32%- 12,883,770 99.32% (a) Includes real, merchants inventory, merchants furniture and fixtures, personal property taxes, and special assessments for parcels in the City's Municipal Improvement District (MID). (b) Because of the change by State law noted in the footnote of Table V, the City of North Augusta uses different tax years for real and personal property taxes. (c) Reassessment year, see Table VI Total Collections to Date Collected within the Current Year of Tax Levy Source: City of North Augusta tax records City of North Augusta, South Carolina Property Tax Levies and Collections Last Ten Fiscal Years 97 Year Ended December 31 Total Revenues Gross Sales Total Number of Licenses Issued 2013 4,738,535$ 963,027,255$ 1,760 2014 5,032,737 1,047,778,440 1,877 2015 5,302,353 1,098,056,589 2,017 2016 5,514,782 1,143,626,048 2,420 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 2022 6,500,762 1,541,689,563 2,208 (a) Increase due to numerous one-time licenses for construction related to projects in Riverside Village. Source: City of North Augusta business license records City of North Augusta, South Carolina Business Licenses/Franchise Fees Last Ten Fiscal Years 98 Year Ended December 31 Residential Inside Water Non-Residential Inside Water Total Inside Water Accounts Residential Outside Water Non-Residential Outside Water Total Outside Water Accounts Total Water Accounts 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 2022 9,605 793 10,398 2,956 163 3,119 13,517 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 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 2022 11,510 672 12,182 986 35 1,021 13,203 Source: City of North Augusta utility billing records City of North Augusta, South Carolina Number of Utility Customers Last Ten Fiscal Years 99 Water Customers Customer Name Type of Business Rank Water Usage Rank Water Usage Ambiopharm Pharmaceutical Manufacturer 1 112,328,700 City of North Augusta Municipal Government 2 87,673,500 3 41,616,800 Halocarbon Chemicals, Inc.Manufacturing 3 64,111,600 2 43,658,800 Allnex Industries, Inc.Manufacturing 4 34,208,400 4 34,754,500 (a) Crowne Plaza Hotel 5 26,244,800 Aiken County Schools School District 7 22,406,600 5 9,796,900 JARS at Breckenridge/Plaza Terrace Apartments 8 12,867,533 6 9,205,300 Graybul Ironwood, LLC Apartments 6 9,097,300 Lulu's Car Wash Automated Car Wash 9 7,202,800 Plaza Place 2020, LLC Apartments 10 6,135,600 Breezy Hill Water & Sewer Authority Water District Provider 1 251,319,000 Gentry's Mobile Home Park Mobile Home Park 7 7,842,300 Pinecrest Apartments Apartments 8 6,746,300 CIG Plaza Place LLC Apartments 9 5,945,000 (b) Whispering Woods Apartments Apartments 10 5,314,100 (c) Wastewater Customers Customer Name Type of Business Rank Water Usage Rank Water Usage Edgefield County Water & Sewer Authority Sewer District Provider 1 812,317,000 1 605,523,000 Ambiopharm Pharmaceutical Manufacturer 2 76,274,462 Halocarbon Chemicals, Inc.Manufacturing 3 64,111,600 2 43,658,800 City of North Augusta Municipal Government 4 43,664,006 Allnex Industries, Inc.Manufacturing 5 33,313,385 3 22,532,900 (a) Crowne Plaza Hotel 6 20,144,600 JARS at Breckenridge/Plaza Terrace Apartments 7 12,247,588 6 7,375,000 Graybul Ironwood, LLC Apartments 8 9,017,003 Aiken County Schools School District 9 7,235,682 5 9,215,694 Lulu's Car Wash Automated Car Wash 10 6,434,003 Gentry's Mobile Home Park Mobile Home Park 4 9,664,700 National Healthcare Nursing Home Facility 7 6,956,000 Pinecrest Apartments Apartments 8 5,654,400 Willow Wick Apartments Apartments 9 5,415,997 Whispering Woods Apartments Apartments 10 5,371,700 (b) 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 2022 Annual Consumption 2013 Annual Consumption 2022 Annual Consumption 2013 Annual Consumption 100 Year Ended December 31 General Obligation Bonds Revenue Bonds Municipal Center Lease Capital Leases Revenue Bonds Capital Leases PSA Capacity Payable Total Primary Government Population (Estimate) Per Capita 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 4,035.50 (b) 2018 - 69,475,000 - 1,174,089 19,877,539 862,405 - 91,389,033 23,444 3,926.49 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) 2022 8,592,000 67,375,000 - 2,106,243 16,033,000 1,464,463 - 95,570,706 24,995 3,823.59 (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. City of North Augusta, South Carolina Ratio of Outstanding Debt by Type Last Ten Fiscal Years Governmental Activities Business-type Activities (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 $25,000 tax increment revenue bond. 101 Year Ended December 31 General Obligation Bonds (GOB) Estimated Actual Taxable Value (1) of Property % of Estimated Actual Taxable Value of Property Population (2)Per Capita 2013 -$ 1,539,933,225$ 0.00% 21,885 -$ 2014 - 1,560,713,463 0.00% 22,048 0.00 2015 - 1,601,776,784 0.00% 22,568 0.00 2016 - 1,654,673,527 0.00% 22,932 0.00 2017 - 1,828,175,365 0.00% 23,275 0.00 2018 - 1,887,487,329 0.00% 23,444 0.00 2019 - 1,942,475,306 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 2,635,148,855 0.39% 24,745 414.23 2022 8,592,000 2,990,768,006 0.29% 24,995 343.75 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 the 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 authorizing to the City to issue not exceeding $10,250,000 of general obligation bonds as part of a favorable Capital Projects Sales Tax referendum. These bonds were issued in 2020 to construct and equip a public safety headquarters and bond payments will be made from revenues collected from the capital projects sales tax. 102 Jurisdiction Debt Outstanding @ December 31, 2022 Percent Applicable to City of North Augusta Amount Applicable to City of North Augusta Direct Debt City of North Augusta * 78,073,243$ 100.00% 78,073,243$ Overlapping Debt County of Aiken 38,675,279$ 20.49% 7,924,565$ Aiken County School District 195,385,000 20.49% 40,034,387 Sub-total - Overlapping Debt 234,060,279$ 20.49% 47,958,952$ Total 312,133,522$ 126,032,195$ City of North Augusta, South Carolina Direct and Overlapping Governmental Activities Debt As of December 31, 2022 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 Source: Aiken County and Aiken County School District 103 2013 2014 2015 2016 2017 Debt Limit 6,994,935$ 7,111,789$ 7,335,620$ 7,575,153$ 8,492,530$ Total net debt applicable to limit (a)- - - - - Legal debt margin 6,994,935$ 7,111,789$ 7,335,620$ 7,335,620$ 7,575,153$ Total net debt applicable to the limit as a percentage of debt limit 0.00% 0.00% 0.00% 0.00% 0.00% 2018 2019 2020 2021 2022 Debt Limit 8,777,324$ 9,208,222$ 11,544,533$ 12,373,671$ 14,118,749$ Total net debt applicable to limit - - - (b)- (b)- Legal debt margin 8,492,530$ 8,777,324$ 11,544,533$ 12,373,671$ 14,118,749$ Total net debt applicable to the limit as a percentage of debt limit 0.00% 0.00% 0.00% 0.00% 0.00% City of North Augusta, South Carolina Fiscal Year Fiscal Year Last Ten Fiscal Years (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 $10,250,000 of general obligation bonds as part of a favorable Capital Projects Sales Tax referendum. These bonds were issued in 2020 to construct and equip a public safety headquarters and bond payments will be made from revenues collected from the capital projects sales tax. 104 Year Ended December 31 Total Operating Revenue Total Operating Expenses Net Revenue Available for Debt Service Revenue Bond Principal Revenue Bond Interest Total Debt Service Coverage Ratio 2013 9,018,317$ 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 2022 11,366,130 8,251,814 3,114,316 1,068,867 130,665 1,199,532 2.60 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 105 Year Population Personal Income (thousands of dollars) Per Capita Personal Income Unemployment Rate 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% 2021 170,776 8,719,369 51,057 3.4% Source: South Carolina Employment Security Commission Note 1 - All figures are for the County of Aiken, City of North Augusta statistics are not available 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 2 - Personal Income and Per Capita Personal Income figures are not available for 2022. The United States Census Bureau has recorded the population of the City of North Augusta and County of Aiken in the decennial years 1940 through 2020 as follows. Population estimates for year 2021 are provided by the City's Planning and Development Department. City of North Augusta County of Aiken County of Aiken, South Carolina (Note 1) Economic Statistics Last Ten Calendar Years (Note 2) 106 % of Total % of Total County County Employer Location Employees Rank Employment Employees Rank Employment Savannah River Site - see detail below (1)Out 11,497 1 16.26% 10,547 1 15.62% Aiken County Public Schools In / Out 3,346 2 4.73% 3,301 2 4.89% Bridgestone Americas (2)Out 2,031 3 2.87% 1,200 5 1.78% Kimberly-Clark Corp. Out 1,250 4 1.77% 1,250 4 1.85% Aiken Regional Medical Center Out 1,117 5 1.58% 1,276 3 1.89% Aiken County Government Out 1032 6 1.46% 877 6 1.30% Advanced Glassfiber Yarn Out 800 7 1.13% 770 7 1.14% Shaw Industries Out 630 8 0.89% 600 9 0.89% UPS Customhouse Brokerage Out 600 9 0.85% 450 10 0.67% City of Aiken Out 439 10 0.62% 430 11 0.64% Hubbell Power Systems Out 418 11 0.59% 370 13 0.55% ASCO Valve, Inc. Out 382 12 0.54% 395 12 0.58% Autoneum North America, Inc. Out 362 13 0.51% 229 17 0.34% The Calstar Group (a)Out 350 14 0.49%230 16 0.34% Washington Safety Management Solutions Out 350 15 0.49% PACTIV Corp.Out 331 16 0.47%213 19 0.32% CVS Distribution Center In 250 17 0.35% MTU America Inc.Out 264 18 0.37%293 15 0.43% City of North Augusta In 255 19 0.36%211 20 0.31% AmbioPharm, Inc In 243 20 0.34% TTX/Hamburg Industries, Inc.In 345 14 0.51% Glaxo Smith Kline Out 215 18 0.32% Newman Technology SC, Inc Out WSI-SRS Team Out 667 8 0.99% 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 506 Centerra 689 2,031 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 5,518 Columbia County, Georgia 1,477 Richmond County, Georgia 1,190 Barnwell County, South Carolina 565 Edgefield County, South Carolina 376 Orangeburg County, South Carolina 104 Bamberg County, South Carolina 96 Lexington County, South Carolina 217 Other 718 10,261 (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 Georg 2022 2013 107 Fund / Function / Department 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 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 1.0 1.0 1.0 2.0 2.0 2.0 2.0 Information Technology 0.0 0.0 0.0 1.5 (a) 1.5 1.5 4.0 (e) 4.0 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 5.5 5.5 4.0 4.0 4.0 4.0 4.0 4.0 4.0 Human Resources 0.0 0.0 0.0 2.0 (b) 2.0 2.0 2.0 2.0 2.0 2.0 Building Standards 3.5 3.5 4.5 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 2.5 2.5 3.5 3.5 4.5 6.0 City Buildings 3.0 3.0 3.0 0.0 0.0 0.0 0.0 0.0 0.0 2.0 Property Maintenance 12.0 12.0 13.0 14.0 14.0 14.0 15.0 18.0 18.0 18.0 Public Safety 77.0 79.0 84.0 88.0 90.0 90.0 91.0 92.0 92.0 93.0 Public Works Engineering 1.5 1.5 1.5 2.5 2.5 2.5 3.0 3.0 3.0 2.75 Streets & Drains 9.0 9.5 10.0 10.0 10.0 10.0 10.0 10.0 10.0 11.0 Parks, Recreation & Tourism Recreation 5.0 4.0 5.0 5.0 4.0 4.0 4.0 4.0 7.0 8.0 Parks 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0 6.0 7.0 Community Center 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 1.0 1.0 Tourism 0.0 0.0 0.0 3.0 (f) 3.0 3.0 3.0 3.0 3.0 1.0 RVP Activities 6.0 6.0 6.0 6.0 7.0 7.0 7.0 7.0 5.0 5.0 Sub-total 135.5 138.0 146.5 152.5 155.0 155.0 162.0 166.0 168.0 173.3 Stormwater Fund Stormwater 5.5 5.0 4.5 5.5 5.0 5.0 5.5 6.0 6.5 6.25 Sub-total 5.5 5.0 4.5 5.5 5.0 5.0 5.5 6.0 6.5 6.25 Riverfront Central Core Dev. Fund Tourism 0.0 0.0 0.0 0.0 1.0 (d) 1.0 1.0 1.0 1.0 1.0 Sub-total 0.0 0.0 0.0 0.0 1.0 1.0 1.0 1.0 1.0 1.0 Sanitation Fund Public Services Information Technology 0.0 0.0 0.0 0.5 (c) 0.5 0.5 0.0 (e) 0.0 0.0 0.0 Sanitation 26.0 26.0 26.0 25.5 26.5 26.5 25.5 26.5 26.5 26.5 Material Recovery Center 7.5 8.5 8.5 8.5 8.5 8.5 8.5 8.5 8.5 8.5 Sub-total 33.5 34.5 34.5 34.5 35.5 35.5 34.0 35.0 35.0 35.0 Water & Wastewater Fund Public Utilities Information Technology 0.0 0.0 0.0 2.0 (a) 2.0 2.0 0.0 (e) 0.0 0.0 0.0 Utilities Finance 5.0 5.0 5.0 4.0 5.0 5.0 5.0 5.0 5.0 5.0 Utilities Administration 7.5 7.5 7.5 7.5 7.5 7.5 6.5 6.5 6.5 6.5 Water Operations 8.0 8.0 8.0 8.0 8.0 8.0 9.0 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 11.0 11.0 11.0 11.0 Sub-total 38.5 38.5 38.5 39.5 40.5 40.5 39.5 39.5 39.5 39.5 TOTAL 213.0 216.0 224.0 232.0 237.0 237.0 242.0 247.5 250.0 255.0 (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 108 Function / Program 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 General Government Size of City (square miles) 20.989 21.019 21.150 21.172 21.177 21.180 21.970 22.210 22.240 22.310 Annexations approved by City Council 5 5 - 211311 7 3 Building permits issued 622 660 648 668 689 703 779 755 846 1,022 Plumbing permits issued 340 310 373 381 296 358 389 420 496 542 Mechanical permits issued 391 433 417 520 455 494 561 551 612 619 Electrical & Solar permits issued 422 431 434 482 813 618 523 582 725 642 Business licenses issued 1,760 1,861 1,849 1,877 2,017 2,420 2,254 2,302 2,192 2,208 Police Total calls for service 41,058 38,973 40,567 37,929 37,322 38,112 40,952 32,520 32,847 35,578 Criminal arrests 1,377 1,360 1,766 1,572 1,338 885 1,127 975 1,031 778 Incident reports (police action required) 3,377 3,399 3,627 3,888 3,966 3,797 3,356 3,035 3,105 3,497 Accident reports (collisions) 960 1,012 1,190 1,187 1,267 1,390 1,191 1,038 1,182 1,162 Traffic offenses (resulting in fine) 8,780 8,785 8,809 7,933 8,261 8,490 9,057 7,677 7,811 7,484 Drug offenses 203 157 177 210 372 214 154 147 153 134 Burglaries reported 117 108 97 132 93 94 76 59 67 62 Fire Actual fire calls - Inside City 130 145 114 105 83 377 384 86 399 370 Actual fire calls - Outside City 17 12 7 31 32 56 26 36 21 31 Solid Waste Garbage Refuse Collected (tons) - Residential 9,079 9,143 10,227 9,334 9,554 9,473 8,613 10,471 11,676 10,793 Garbage Refuse Collected (tons) - Commercial 4,992 5,037 4,723 5,502 6,082 5,647 6,108 6,412 6,362 5,780 Recyclables Collected (tons) 5,326 5,313 6,656 5,047 5,437 5,507 4,312 5,104 4,510 2,181 Property Maintenance Tree trimming hours 254 275 1,378 3,516 1,338 2,050 1,202 2,073 1,963 2,677 Mowing hours 12,960 12,976 10,944 12,892 14,036 10,368 11,025 12,651 12,032 11,215 Planting hours 5,565 4,628 1,726 1,388 1,145 1,504 754 1,542 913 1,454 Streets and Drains Pothole patching / asphalt tons 476 409 341 464 142 132 169 227 225 232 Curb, gutter & sidewalk repair / CY 285 378 472 292 400 294 402 441 414 357 Storm drain inlets cleaned 325 282 419 619 848 664 612 616 537 687 Street sweeping / miles 2,727 977 1,339 822 574 563 588 785 697 1,424 Parks and Recreation Baseball / Number of Players 735 789 779 687 592 576 617 466 578 634 Youth Softball / Number of Players 248 259 238 234 240 221 211 133 207 276 Spring Soccer / Number of Players 528 511 484 532 585 580 567 262 578 667 Fall Soccer / Number of Players 474 473 552 552 493 540 540 470 578 514 Youth Basketball / Number of Players 549 680 640 615 652 577 647 492 701 792 Youth Football / Number of Players 310 281 280 239 219 267 269 202 313 337 Youth Cheerleading / Number of Participants 118 96 113 117 182 164 170 142 196 240 Youth Volleyball / Number of Participants 105 83 94 73 86 82 95 105 132 162 Water New water taps 33 77 77 184 130 128 103 119 89 210 Water lines installed / L.F. 5,609 2,068 2,599 913 4,115 6,638 6,432 3,230 765 7,230 Water line leaks repaired 29 34 23 27 16 19 18 9 10 26 Average daily water pumped 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 3,842,000 Daily peak demand (gallons per day) 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 7,507,000 Peak day 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 6/13/2022 Wastewater New sewer taps 117 135 158 212 154 197 187 208 284 252 Wastewater lines installed / L.F. 1,379 508 1,970 1,259 6,208 8,423 5,077 2,360 765 5,847 Wastewater lines repaired / L.F. 33 62 680 556 252 16 47 32 34 64 Wastewater lines cleaned / L.F. 73,232 93,859 70,610 57,320 34,516 49,432 67,416 41,057 30,273 27,310 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 109 Function / Program 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Public Safety Number of Stations 2 2 33333333 Number of Public Safety Officers 55 58 61 62 64 65 65 65 66 67 Number of Volunteer Firemen 20 20 20 20 25 20 20 20 20 20 Insurance Rating (ISO)Class 3 Class 3 Class 2 Class 2 Class 2 Class 2 Class 2 Class 2 Class 2 Class 2 Signalized Intersections 30 30 31 31 32 32 32 32 34 35 Number of Fire Hydrants Inside City 805 809 812 814 816 848 848 852 853 860 Outside City 149 149 149 149 149 149 149 150 150 163 Public Works Miles of Streets 140.85 141.37 141.91 143.77 144.2 144.9 145.75 147.75 149.86 150.85 Street Lights 1,789 1,800 1,817 1,841 1,859 1,980 2,000 2,040 2,075 2,097 Parks, Recreation & Tourism Number of Parks 22 22 22 22 22 22 22 23 23 23 Park Acreage 550 550 550 550 550 550 550 527 527 527 Miles of Paved Greenway 14.0 14.0 14.0 14.0 14.0 14.0 14.0 14.0 14.0 14.1 Number of Picnic Shelters 8 9 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 15 15 15 Multi-purpose Fields 3 3 33333333 Community Center 1 1 11111111 Activities Center 1 1 11111111 Water Miles of Water Lines 196.01 196.08 228.68 229.07 229.84 231.09 232.3 232.74 232.88 234.25 Maximum Pumping Capacity 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 12,000,000 (gallons per day) Sewer Miles of Wastewater Lines 228.54 228.57 229.20 229.57 230.74 232 232.96 233.4 235.71 236.17 Stormwater Miles of Storm Sewer 59.79 60.37 60.73 68.01 68.47 69.21 70.04 71.66 73.43 74.38 (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 110 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 $19.67 $27.71 Base Fee Commercial (monthly) In and Out City Inside City Outside City 2 cubic yard container $51.64 $2.71 $3.89 3 cubic yard container 54.05 2.71 3.89 4 cubic yard container 56.44 2.71 3.89 6 cubic yard container 61.73 2.71 3.89 8 cubic yard container 67.54 2.71 3.89 Stormwater Management Service Charges in effect December 31, 2022 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 Base Rates / Outside City Limits Sewer Rate in effect December 31, 2022 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, 2022 Volume Rates / Outside City Limits Sanitation Service Charges in effect December 31, 2022 Residential (monthly) Volume Charge (per cubic yard) City of North Augusta, South Carolina Enterprise Funds Rates and Charges Rates / Charges in effect December 31, 2022 Base Rates Base Rates / Outside City Limits Volume Rates / Inside City Limits Volume Rates / Outside City Limits 111 1/1/2013 1/1/2020 1/1/2018 1/1/2017 1/1/2022 Sanitation Rollcart Charge increased $0.17 inside city limits and $0.26 outside city limits Commercial Volume Charge increased $0.36 inside city limits and $0.36 outside city limits 1/1/2017 Recycling Service Charge of $3.60 included in Residential and Commercial Service Charges Commercial Volume Charge increased $0.19 inside city limits and $0.29 outside city limits 1/1/2015 Stormwater Management Service charge increased $1.00 per equivalent residential unit (ERU) per month. Stormwater Management Service Charge Changes (past 10 years) 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 History of Sanitation and Recycling Charge Changes (past 10 years) History of Sewer Rate Changes (past 10 years) 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) City of North Augusta, South Carolina Enterprise Funds History of Rates and Charges Last Ten Fiscal Years Through December 31, 2022 O & M Volume Rate and Debt Service Rate increased in total by $0.15 per 1,000 gallons inside and outside city limits (PSA) 112 COMPLIANCE SECTION 508 HAMPTON STREET, 1ST FLOOR • COLUMBIA, SOUTH CAROLINA 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, 2022, 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 24, 2023. Our report includes a reference to a change in accounting principle resulting from the implementation of GASB Statement No. 87, Leases. 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 were not identified. 113 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 24, 2023 114 508 HAMPTON STREET, 1ST FLOOR • COLUMBIA, SOUTH CAROLINA 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 COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM; REPORT ON INTERNAL CONTROL OVER COMPLIANCE AND REQUIRED BY THE UNIFORM GUIDANCE Honorable Mayor and Members of City Council City of North Augusta, South Carolina Report on Compliance for the Major Federal Program Opinion on Each Major Federal Program We have audited the City of North Augusta, South Carolina’s (the “City") compliance with the types of compliance requirements identified as subject to audit in the OMB Compliance Supplement that could have a direct and material effect on the City’s major federal program for the year ended December 31, 2022. The City’s major federal program is identified in the summary of auditor's results section of the accompanying schedule of findings and questioned costs. In our opinion, the City of North Augusta, South Carolina complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on its major federal program for the year ended December 31, 2022. Basis for Opinion on the Major Federal Program We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America (GAAS); the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States and the audit requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Our responsibilities under those standards and the Uniform Guidance are further described in the Auditor’s Responsibilities for the Audit of Compliance section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with 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 opinion on compliance for each major federal program. Our audit does not provide a legal determination of the City’s compliance with the compliance requirements referred to above. Responsibilities of Management for Compliance Management is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules, and provisions of contracts or grant agreements applicable to the City’s federal programs. 115 Auditor’s Responsibility for the Audit of Compliance Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on the City’s compliance based on our audit. 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, Government Auditing Standards, and the Uniform Guidance will always detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Noncompliance with the compliance requirements referred to above is considered material if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about the City’s compliance with the requirements of each major federal program as a whole. In performing an audit in accordance with GAAS, Government Auditing Standards, and the Uniform Guidance, we:  Exercise professional judgment and maintain professional skepticism throughout the audit.  Identify and assess the risks of material noncompliance, 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 City’s compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances.  Obtain an understanding of the City’s internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control over compliance. Accordingly, no such opinion is expressed. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we identified during the audit. 116 Report on Internal Control over Compliance A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. Our consideration of internal control over compliance was for the limited purpose described in the Auditor’s Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance. Given these limitations, during our audit we did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. However, material weaknesses or significant deficiencies may exist that have not been identified. Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose. Columbia, South Carolina May 24, 2023 117 CITY OF NORTH AUGUSTA, SOUTH CAROLINA SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS Assistance Grant Federal Grantor/Pass-through Listing Identification Grantor/Program Title Number Number Expenditures Subrecipients U.S. Department of Treasury Direct: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds 21.027 N/A $ 1,035,721 $ - Total U.S. Department of Treasury 1,035,721 - U.S. Department of Transportation Passed through from the S.C. Department of Public Safety: Highway Safety Cluster Police Traffic Services Grant 20.600 N/A 5,440 - Police Traffic Services Grant 20.600 N/A 149,743 - Police Traffic Services Grant 20.600 N/A 37,292 - Total Highway Safety Cluster 192,475 - . Total U.S. Department of Transportation 192,475 - U.S. Department of Agriculture Direct: Emergency Watershed Protection Program 10.923 N/A 164,667 - Total Expenditures of Federal Awards $ 1,392,863 $- FOR THE YEAR ENDED DECEMBER 31, 2022 Passed Through to 118 CITY OF NORTH AUGUSTA, SOUTH CAROLINA NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS NOTE 1. SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The Schedule of Expenditures of Federal Awards includes the federal grant activity of the City of North Augusta, South Carolina (the “City”) and is prepared on the accrual basis of accounting. Program Type Determination Type A programs are defined as federal programs with federal expenditures exceeding $750,000. The threshold of $750,000 was used in distinguishing between Type A and Type B programs. Method of Major Program Selection The risk-based approach was used in the selection of federal programs to be tested as major programs. The City did not qualify as a low-risk auditee for the fiscal year ended December 31, 2022. NOTE 2. DE MINIMIS INDIRECT COST RATE The City chose not to use the ten percent de Minimis indirect cost rate for the year ended December 31, 2022. 119 CITY OF NORTH AUGUSTA, SOUTH CAROLINA SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR THE FISCAL YEAR ENDED DECEMBER 31, 2022 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 None Reported Noncompliance material to financial statements noted? Yes X No Federal Awards Internal control over major programs: Material weaknesses identified? Yes X No Significant deficiencies identified? Yes X No Type of auditor’s report issued on compliance for major programs: Unmodified Any audit findings disclosed that are required to be reported in accordance with 2 CFR 200.516(a)? Yes X No Identification of major programs: Assistance Listing Number Name of Federal Program or Cluster U.S. Department of the Treasury – 21.027 COVID-19 Coronavirus State and Local Fiscal Recovery Funds Dollar threshold used to distinguish between Type A and Type B programs: $750,000 Auditee qualified as low-risk auditee? Yes X No 120 CITY OF NORTH AUGUSTA, SOUTH CAROLINA SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR THE FISCAL YEAR ENDED DECEMBER 31, 2022 SECTION II FINANCIAL STATEMENT FINDINGS AND RESPONSES None reported. SECTION III FEDERAL AWARD FINDINGS AND QUESTIONED COSTS None reported. SECTION IV PRIOR YEAR FINDINGS AND RESPONSES None reported. 121