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12.31.2023 Annual Comprehensive Financial ReportNorth ^ Augusta South Carolina's Riuetfront CITY OF NORTH AUGUSTA Annual Comprehensive Financial Report Year Ended December 31, 2023 CITY OF NORTH AUGUSTA SOUTH CAROLINA ANNUAL COMPREHENSIVE FINANCIAL REPORT YEAR ENDED DECEMBER 31, 2023 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, 2023 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, 2023 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, 2023 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, and tax 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, and 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, 2023 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 (includes 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 25,646 for 2023. During the past ten years, Aiken County’s unemployment rate has fluctuated from 6.7 percent in 2013, decreasing to 3.4 percent during 2021, and then increasing to 3.6 percent for 2023. The 2023 rate is the slightly more than South Carolina’s 2023 unemployment rate of 3.0 percent and the same as the 2023 national rate of 3.6 percent. The increases in unemployment rates since 2019 reflect the impacts of the COVID-19 pandemic. Median household incomes within the City of North Augusta continue to be higher than for the state as a whole. According to the United States Census Bureau (USCB), the City’s median family income is $85,093, Aiken County’s is $63,212, and the State’s is $63,623. Housing prices in the City continue to remain strong. Per the USCB, the median price of a single-family home in the City is $210,000. 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 Forest Bluff, 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 fifth season in the 4,500 seat SRP Park during 2023 and are the Low-A affiliate for the Atlanta Braves. 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. Construction is slated to begin on additional mixed-use developments on the remaining parcels to include 315 apartments and 8,100 square feet of retail space. Additions to the Sharon Jones iv Amphitheater to include bathrooms and additional seating will add to the amenities in Riverside Village, as well, as a boat dock alongside the amphitheater. To date, the City has constructed the stadium, two parking decks, the public infrastructure and contribution of funds toward the conference center, and completion of a riverfront park known as the Sharon Jones Amphitheater. Cost of the public improvements is approximately $75,000,000. The funding mechanism for the public projects includes tax increment financing, local hospitality and accommodations taxes, parking revenues, corporate naming rights, and stadium rental payments. Long-Term Financial Planning and Major Initiatives During the year, City Council and Staff have met in planning sessions. The major focus of these sessions is to identify the best possible future for North Augusta and to chart a course to make that future a reality. The success of these planning sessions can be easily measured by the many changes that have taken place in the City over the past few years. Future projects requiring significant financial planning and resources have been identified as follows: new public safety fire station and training center, 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, downtown development, and library improvements. These projects are estimated to cost in excess of $48,000,000 and are expected to be included with Capital Projects Sales Tax V. The Local Hospitality and Accommodations taxes levied by the City during 1998 have continued as a positive revenue stream in 2023 reflecting continued residential and commercial growth in the City. 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 to include the new public safety headquarters, Bluff Avenue road reconstruction, as well as improvements to the downtown area and city parks. The City has received all funding allocated in Coronavirus State and Local Fiscal Recovery Funds in excess of $11,000,000. The City 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. The City has initiated work and/or completed most projects obligated with these funds. 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 December 31, 2023 is $1,906,876. v vi 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, 2022 Executive Director/CEO vii Organizational Chart - 2023 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, 2023 ELECTED OFFICIALS Briton S. Williams, Mayor Jenafer F. McCauley, Mayor Pro TemporeDavid B. Buck, Councilman Pat C. Carpenter, 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 A. 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 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, 2023, 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, 2023, 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. 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 62), the Schedule of Proportionate Share of the Net Pension Liability – Police Officers Retirement System (page 62), the Schedule of Contributions – South Carolina Retirement System (pages 63 and 64) and the Schedule of Contributions – Police Officers Retirement System (pages 63 and 64) 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 June 18, 2024, 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 June 18, 2024 4 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, 2023. 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 $161,050,462 (net position). Of this amount, $1,706,540 represents unrestricted net position, which may be used to meet the government’s ongoing obligations to citizens and creditors. This number in the Governmental Activities 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 $12,466,032.  At the close of the current fiscal year, the City’s governmental funds reported combined fund balances of $23,771,882 a decrease of ($6,690,972) 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 2023. Both residential and commercial construction activity continues to rise in the City, resulting in increases to both business license and permit revenue streams. The City began two major capital outlay construction projects, the Public Safety Headquarters and Bluff Avenue Road Reconstruction, in the Capital Projects Sales Tax IV Fund. Both projects are expected to be completed in 2024. Approximately 16 percent of the governmental funds combined fund balance, $3,700,000, 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 $5,606,876 or 24.26 percent of total general fund expenditures.  The City’s outstanding debt decreased by ($3,736,795) 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. 5 The statement of net position presents information on all of the City’s assets, liabilities, and deferred inflows/outflows of resources with the difference reported as net position. Over time, increases and decreases in net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating. The statement of activities presents information showing how the City’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave). Both of the government-wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business- type activities). The governmental activities of the City include general government, public safety, public works, and parks, recreation, and tourism. The business-type activities of the City include water and wastewater utility, sanitation services, and stormwater enterprise. The government-wide financial statements include not only the City itself (known as the primary government), but also a legally separate public facilities corporation for which the City is financially accountable. The corporation, although a legally separate entity, functions for all practical purposes as a fund of the City and therefore has been included as an integral part of the primary government. The government-wide financial statements can be found immediately following this discussion and analysis. Fund Financial Statements A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the City can be divided into two categories: governmental funds and proprietary funds. The City does not have a fiduciary fund. Governmental funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government’s near-term financing requirements. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government’s near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The City maintains fifteen 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 nine governmental funds are 6 combined into a single aggregated presentation. Individual fund data for each of these nonmajor governmental funds is provided in the form of combining statements in this report. The City adopts an annual appropriated budget for its General Fund. A budgetary comparison statement has been provided for the General Fund to demonstrate compliance with the budget. The basic governmental fund financial statements can be found immediately following the government- wide financial statements. Proprietary funds. The City maintains one type of proprietary fund. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The City uses enterprise funds to account for its water, wastewater, sanitation, and stormwater operations as well as the Savannah Bluff Lock and Dam that was created for the purpose of maintaining the Augusta pool on the Savannah River. Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for the water, wastewater, sanitation and stormwater operations, all of which are considered to be major funds of the City. Savannah Bluff Lock and Dam is a nonmajor fund. The proprietary fund financial statements can be found immediately following the governmental fund financial statements. Notes to the Financial Statements. The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements can be found immediately following the proprietary fund financial statements. Other Financial Information. In addition to the basic financial statements, the accompanying notes, and the required supplementary information, this report presents certain financial data of individual fund statements and schedules. Government-Wide Financial Analysis As noted earlier, net position over time may serve as a useful indicator of a government’s financial position. In the case of the City, assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $161,050,462 at the close of the most recent fiscal year. City of North Augusta's Net Position 2023 2022 2023 2022 2023 2022 Current and other assets 38,219,543$ 44,777,280$ 24,226,981$ 24,531,416$ 62,446,524$ 69,308,696$ Capital assets 146,232,705 134,995,396 85,273,756 81,289,731 231,506,461 216,285,127 Total Assets 184,452,248 179,772,676 109,500,737 105,821,147 293,952,985 285,593,823 Deferred outflows of resources 2,109,138 2,277,508 866,283 942,907 2,975,421 3,220,415 Long-term liabilities outstanding 92,297,766 95,136,422 25,608,931 26,767,131 117,906,697 121,903,553 Other liabilities outstanding 14,099,447 13,811,696 1,770,519 1,903,462 15,869,966 15,715,158 Total Liabilities 106,397,213 108,948,118 27,379,450 28,670,593 133,776,663 137,618,711 Deferred inflow of resources 1,770,234 2,019,106 331,047 591,991 2,101,281 2,611,097 Net position: Net investment in capital assets 69,956,542 56,753,022 68,970,736 63,792,267 138,927,278 120,545,289 Restricted 11,272,709 19,633,892 9,143,935 8,437,860 20,416,644 28,071,752 Unrestricted (2,835,312) (5,303,954) 4,541,852 5,271,343 1,706,540 (32,611) Total Net Position 78,393,939$ 71,082,960$ 82,656,523$ 77,501,470$ 161,050,462$ 148,584,430$ Governmental Activities Business-type Activities Total By far, the largest portion of the City’s net position, 86.26 percent, reflects its investment in capital assets (e.g., land, land improvements, rights-of-way and easements, buildings, machinery and equipment, furniture and fixtures, vehicles, infrastructure, system improvements, PSA capital, and construction in progress), less any related outstanding debt to acquire those assets. The City uses these capital assets to provide a variety of services to its citizens. Accordingly, these assets are not available for future 7 spending. Although the City’s investment in capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources since the capital assets themselves cannot be used to liquidate these liabilities. An additional portion of the City’s net position, 12.68 percent, represents resources that are subject to external restrictions on how they may be used. The remaining balance of $1,706,540 may be used to meet the government’s ongoing obligations to citizens and creditors. At the end of the current fiscal year, the City is able to report positive balances in all categories of net position for the government as a whole. The governmental activities is able to report positive balances in two of the categories of net position, while the business-type activities is able to report positive balances in all categories. The same categories were also positive in the prior year. Unrestricted net position is negative in the current year for governmental activities 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 2023, governmental activities increased the City’s net position by $7,310,979. Governmental activities revenues increased $7,272,720 from 2022 to 2023 primarily due to an increase in operating grants as well as an increase in interest income and other taxes. Property taxes represent 34.46 percent of total revenues for governmental activities and increased $666,800 from 2022 due to increased millage rate of 2 mills in the 2023 budget as well as growth in the City for both residential and construction properties. Charges for services include: business license revenues, franchise fees, construction permits, recreational programs, rentals and tournaments, and public safety fines. These revenues represent 27.22 percent of total revenues for governmental activities and are predominantly elastic in nature and vary with economic trends. Charges for services increased $641,197 related to continued increases in construction activity along with an increase in recreational programs participation and rentals. Other tax revenue increased 43.33 percent compared to the prior year as a result of an increase in the construction of Capital Sales Tax IV projects and receipt of the funds from Aiken County. Also, during 2023, governmental activities expenses increased by $2,817,715. General government expenses increased by $829,641, or 9.24 percent due to increase in capital outlay, fuel costs, general inflation, and employee retention programs. Parks, Recreation, and Tourism expenses increased $571,973, or 12.84 percent, due to the increase of tourism and special events and the related expenses, general inflation, and employee retention. Public Works expenses increased $449,270, or 14.38 percent due to increase capital outlay and employee retention programs. Public Safety expenses reflected an increase of 11.40 percent over the prior year due to an increased capital outlay costs and fuel costs. 8 City of North Augusta's Changes in Net Position 2023 2022 2023 2022 2023 2022 Revenues: Program revenues: Charges for services 10,891,586$ 10,250,389$ 16,555,166$ 15,782,207$ 27,446,752$ 26,032,596$ Operating grants and contributions 5,033,679 2,316,342 1,301,017 - 6,334,696 2,316,342 Capital grants and contributions - 639,030 1,631,416 1,093,373 1,631,416 1,732,403 General revenues: Property taxes 13,789,487 13,122,687 - - 13,789,487 13,122,687 Other taxes 6,356,851 4,435,258 - - 6,356,851 4,435,258 Other 3,945,480 1,980,657 1,808,683 2,671,650 5,754,163 4,652,307 Total Revenues 40,017,083 32,744,363 21,296,282 19,547,230 61,313,365 52,291,593 Expenses: General government 9,807,883 8,978,242 - - 9,807,883 8,978,242 Public safety 10,692,057 9,668,579 - - 10,692,057 9,668,579 Public works 3,574,540 3,125,270 - - 3,574,540 3,125,270 Parks, recreation, and tourism 5,026,860 4,454,887 - - 5,026,860 4,454,887 Interest and fiscal charges on debt service 3,281,470 3,338,117 - - 3,281,470 3,338,117 Water and wastewater - - 10,956,787 10,195,996 10,956,787 10,195,996 Sanitation - - 4,493,114 4,054,330 4,493,114 4,054,330 Stormwater - - 992,622 955,356 992,622 955,356 Savannah Bluff Lock and Dam - - 22,000 26,000 22,000 26,000 Total Expenses 32,382,810 29,565,095 16,464,523 15,231,682 48,847,333 44,796,777 Increase (decrease) in net position before transfers 7,634,273 3,179,268 4,831,759 4,315,548 12,466,032 7,494,816 Transfers (323,294) 1,030,404 323,294 (1,030,404) - - Increase in net position 7,310,979 4,209,672 5,155,053 3,285,144 12,466,032 7,494,816 Net position-beginning of year 71,082,960 66,873,288 77,501,470 74,216,326 148,584,430 141,089,614 Net position-end of year 78,393,939$ 71,082,960$ 82,656,523$ 77,501,470$ 161,050,462$ 148,584,430$ Governmental Activities Business-type Activities Total Business-type Activities Business-type activities increased the City’s net position by $5,155,053. Water, wastewater, and stormwater rates remained unchanged. Water sales increased 4.4 percent over the prior year due to the residential and business growth within the City. Water sales were over budget in 2023 by approximately $156,364 related to an increase in usage and customer base. Sewer sales increased approximately $349,444, 4.86 percent, over the prior year complementing the increase in water sales. Sanitation rates had a monthly increase in 2023 of $1.77 for residential inside customers and $2.47 for residential customers outside City limits. Commercial customers also had a rate increase 15 cents in per cubic yard rates. Fees for sanitation services increased approximately $441,656 related to growth in the City. Recycling fees increased $32,911 from the prior year. Commercial tipping tons came in over budget by approximately $54,000 due to the amount of waste material being processed by the City’s Materials Recovery Facility (MRF) was more than anticipated during the year due to the completion of rebuilding of the facility from a fire at the end of 2021. Stormwater fees increased 2.6 percent as anticipated due to additional customers. 9 Expenses for the Water and Wastewater System increased by $775,415 from the prior year primarily due to increased fuel costs, employee retention programs, and equipment replacements for the existing water system. In 2023, the expenses for the Sanitation Services Fund showed an increase from the prior year of $432,701 due to increased fuel costs, equipment repair, and personnel. Increased expenses in the Stormwater Utility Fund were $39,712 due to increased depreciation of capital assets. A total of $22,000 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 the following: 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, 2023, the City’s governmental funds reported combined fund balances of $23,771,882, a decrease of ($6,690,972) from the prior year. The majority of this decrease is attributable to the capital outlay expense in the Capital Sales Tax IV Fund. The City began construction on two major projects listed on the referendum in 2023. Approximately 16 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 $350,000 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 $3,700,000, while total fund balance was $5,736,657. As a measure of the General Fund’s liquidity, it may be useful to compare unassigned and total fund balance to total fund expenditures. Unassigned fund balance represents 16.01 percent of total General Fund expenditures, while total fund balance represents 24.82 percent of those same expenditures. The total fund balance of the City’s general fund increased by $85,062 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 which also have a positive impact on license and permit fees. 10 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 continued to allocate these funds 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 ($11,594,636) related to scheduled payment of debt service in 2023 as well as construction beginning on the Public Safety Headquarters and the Bluff Avenue Road Reconstruction projects listed in the referendum passed in 2018. The Capital Projects Fund had a fund balance of $6,841,620, an increase of 41.75 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 $43,853 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 38.24 percent from the prior year due to the decrease in general government expenses incurred in 2023. Fund balance for the City’s nonmajor governmental funds totaled $5,453,512 for 2023, an increase of $901,531 primarily related to increased hospitality and accommodations taxes received in 2023 and the addition of the Savannah River Settlement Fund. The Savannah River Settlement Fund was created in 2023 to receive funds appropriated from the settlement of the lawsuit between the State of South Carolina and the United States Department of Energy concerning the termination of the Mixed Dioxide Fuel Fabrication Facility at the Savannah River. 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 $4,541,852. Total decline in unrestricted net position was ($29,491). 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, 2023. Current property tax revenues exceeded budget by approximately $212,000 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 $738,000. 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 $17,000 reflective of receipt of unbudgeted other income items to include sales of City assets. Intergovernmental revenues exceeded budget by approximately $602,000 due to an increase in the state shared revenue and state public safety grants from the state awarded mid-year. Fines and forfeitures did not meet budgeted expectations, however, were offset by under expenditure of remittances to the state for fees and fines. 11 The over-expenditures for Public Safety and Parks, Recreation, and Tourism were primarily due to the purchase of vehicles and equipment with 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, 2023, amounts to $231,425,280 (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 $15 million, 7.01 percent. Additional information on the City’s capital assets can be found in Note 5 of this report. City of North Augusta's Capital Assets (net of depreciation)2023 2022 2023 2022 2023 2022 Land 10,330,391$    10,330,391$    824,058$       824,058$       11,154,449$    11,154,449$     Land improvements 10,544,511      10,517,425      77,992            81,538            10,622,503      10,598,963       Right‐of‐way and easements 4,484,537         4,215,528         62,760            62,760            4,547,297         4,278,288          Buildings 85,791,713      84,158,097      19,064,022    18,118,298    104,855,735    102,276,395     Machinery and equipment 1,976,459         2,070,769         1,214,358      998,202          3,190,817         3,068,971          Furniture and fixtures 243,737            35,963               ‐                   ‐                   243,737            35,963                Vehicles 3,485,518         3,215,996         2,029,509      1,440,130      5,515,027         4,656,126          Infrastructure 15,667,002      15,169,035      ‐                   ‐                   15,667,002      15,169,035       System improvements ‐                     ‐                     60,209,162    57,563,960    60,209,162      57,563,960       PSA capital ‐                     ‐                     1,484,776      1,546,758      1,484,776         1,546,758          Construction in progress 13,708,837      5,282,192         296,138          640,546          14,004,975      5,922,738               Total Capital Assets 146,232,705$  134,995,396$  85,262,775$ 81,276,250$ 231,495,480$  216,271,646$   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 $5,070,204.  Nearly $800,000 of water and sewer capital assets were added by developers and contributed to the City.  Continued construction on Public Safety Station I and Public Safety Headquarters totaling $10,193,375.  Purchase of various vehicles, machinery, and equipment for all departments totaling $2,750,626 with a portion financed from lease proceeds.  Water and sewer related infrastructure improvements totaling $524,127. Long-term Debt. At the end of the current fiscal year, the City had total bonded debt outstanding of $88,438,000. The City’s debt represents bonds secured solely by specified revenue sources. City of North Augusta's Outstanding Debt 2023 2022 2023 2022 2023 2022 Revenue bonds 66,595,000$  67,375,000$        14,929,000$     16,033,000$        81,524,000$  83,408,000$         General obligation bonds 6,914,000      8,592,000             ‐                       ‐                         6,914,000       8,592,000             Capital leases 2,021,891      2,106,242            1,374,020          1,464,464            3,395,911       3,570,706                  Total Outstanding Debt 75,530,891$  78,073,242$        16,303,020$     17,497,464$        91,833,911$  95,570,706$         Governmental Activities Buisness‐type Activities Total The City’s total debt outstanding decreased by ($3,736,795) during the current fiscal year. This net decrease was attributed to scheduled debt service payments during 2023. The City was upgraded to an “Aa3” rating from Moody’s Investors Service for the taxable Series 2017B revenue bond reported in governmental activities. This upgrade was awarded in part to the City’s healthy cash and fund balance reserves. 12 The City’s revenue bonds for business type activities were private issues and therefore not rated. The City’s debt coverage ratio decreased to 2.17 in 2023. 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 $3,395,911 in financed purchases payable for equipment and vehicles and other long-term liabilities related to compensated absences as well as net pension liability totaled $24,801,999 (not presented in the table above). Additional information regarding the City’s 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 $15,272,546. 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 2023 has continued to be 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 2024 fiscal year budget:  During the past ten years, Aiken County’s unemployment rate has fluctuated from 6.7 percent in 2013, decreasing to 3.4 percent during 2021, and then increasing to 3.6 percent for 2023.  The value of a mill has increased over 61 percent during the past ten years reflective of the growth in the City’s tax digest. The millage rate for the 2023 budget was 75.50 with 3.80 mills dedicated for the Capital Projects Fund. The millage rate included for preparing the 2024 budget is 77.50 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 water/wastewater and stormwater customers as costs to provide these services continues to rise. Rates remain stable for other sanitation activities. All of these factors were considered in preparing the City’s general fund budget for the 2024 fiscal year. Amounts available for appropriation are $24.63 million, an increase of 10.90 percent, over the final prior fiscal year budget of $22.21 million. The City’s budgetary balance is expected to remain relatively stable during 2024 with opportunities to bring non-critical projects online. As for the City’s business type activities, we expect future results to remain stable in 2024. 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 $ 34,318,114 $ 13,073,524 $ 47,391,638 Taxes receivable 80,983 - 80,983 Accounts receivable, net of allowances 1,097,744 1,664,731 2,762,475 Due from other governments 59,198 - 59,198 Lease receivable 886,676 - 886,676 Inventory - 246,355 246,355 Restricted cash and cash equivalents 1,776,828 9,242,371 11,019,199 Capital assets: Non-depreciable 28,523,765 1,182,956 29,706,721 Depreciable, net of accumulated depreciation and amortization 117,708,940 84,090,800 201,799,740 Total assets 184,452,248 109,500,737 293,952,985 DEFERRED OUTFLOWS OF RESOURCES Pension 2,109,138 866,283 2,975,421 Total deferred outflows of resources 2,109,138 866,283 2,975,421 LIABILITIES Accounts payable 3,920,125 604,582 4,524,707 Retainage payable 745,272 - 745,272 Accrued liabilities 364,122 131,815 495,937 Unearned revenues 8,298,041 338,642 8,636,683 Accrued interest payable 574,673 - 574,673 Other liabilities 197,214 - 197,214 Payable from restricted resources: Accrued interest payable - 66,503 66,503 Customer deposits - 628,977 628,977 Long-term liabilities: Due within one year 4,038,922 2,129,156 6,168,078 Due in more than one year 72,392,801 14,543,819 86,936,620 Other long-term liabilities due in more than one year: Net pension liability 15,866,043 8,935,956 24,801,999 Total liabilities 106,397,213 27,379,450 133,776,663 DEFERRED INFLOWS OF RESOURCES Pension 926,472 331,047 1,257,519 Deferred lease receipts 843,762 - 843,762 Total deferred inflows of resources 1,770,234 331,047 2,101,281 NET POSITION Net investment in capital assets 69,956,542 68,970,736 138,927,278 Restricted for: Victims assistance 129,781 - 129,781 Public safety - fire division 129,913 - 129,913 Operations - Savannah Bluff Lock and Dam - 530,541 530,541 Capital projects 127,779 - 127,779 Special projects 10,885,236 - 10,885,236 Debt service - 8,613,394 8,613,394 Unrestricted (2,835,312) 4,541,852 1,706,540 Total net position $ 78,393,939 $ 82,656,523 $ 161,050,462 CITY OF NORTH AUGUSTA, SOUTH CAROLINA STATEMENT OF NET POSITION DECEMBER 31, 2023 The accompanying notes are an integral part of these financial statements. 15 Program RevenuesOperating CapitalCharges forGrants andGrants and Governmental Business-typeFunctions/ProgramsExpensesServicesContributionsContributionsActivitiesActivitiesTotalPrimary government: Governmental activities: General government $ 9,815,418 $ 7,682,907 $ 4,291,639 $- $ 2,159,128 $- $ 2,159,128 Public safety 10,684,522 942,166 101,495 - (9,640,861) - (9,640,861) Public works 3,574,540 107,202 640,545 - (2,826,793) - (2,826,793) Parks, recreation and tourism 5,026,860 2,159,311 - - (2,867,549) - (2,867,549) Interest and fiscal charges on long-term debt3,281,470 - - - (3,281,470) - (3,281,470) Total governmental activities 32,382,810 10,891,586 5,033,679 - (16,457,545) - (16,457,545) Business-type activities: Water and wastewater10,956,787 11,202,511 23,515 799,614 - 1,068,853 1,068,853 Sanitation 4,493,114 4,469,657 - - - (23,457) (23,457) Stormwater utility992,622 882,998 1,277,502 831,802 - 1,999,680 1,999,680 Savannah Bluff Lock and Dam22,000 - - - - (22,000) (22,000) Total business-type activities 16,464,523 16,555,166 1,301,017 1,631,416 - 3,023,076 3,023,076 Total primary government $ 48,847,333 $ 27,446,752 $ 6,334,696 $ 1,631,416 (16,457,545) 3,023,076 (13,434,469) General revenues:Ad valorem property taxes13,789,487 - 13,789,487 Capital projects sales tax 3,423,388 - 3,423,388 Local hospitality and accommodation tax2,933,463 - 2,933,463 Interest earned1,708,263 779,787 2,488,050 Gain on sale of capital assets- 53,677 53,677 Miscellaneous2,237,217 975,219 3,212,436 Transfers(323,294) 323,294 - Total general revenues and transfers23,768,524 2,131,977 25,900,501 Change in net position7,310,979 5,155,053 12,466,032 Net position, beginning of year71,082,960 77,501,470 148,584,430 Net position, end of year $ 78,393,939 $ 82,656,523 $ 161,050,462 Net (Expenses) Revenues and Changes in Net PositionPrimary GovernmentCITY OF NORTH AUGUSTA, SOUTH CAROLINASTATEMENT OF ACTIVITIES FOR THE YEAR ENDED DECEMBER 31, 2023The accompanying notes are an integral part of these financial statements. 16 Capital Projects CapitalTax North AugustaNonmajorTotalGeneral Sales Tax IVProjects IncrementPublic Facilities ARPAGovernmental GovernmentalFund Fund Fund Fund Corporation Fund Fund Funds FundsASSETSCash and cash equivalents 7,798,994$ 55,491$ 6,858,896$ 478,587$ 4,791,694$ 8,898,190$ 5,436,262$ 34,318,114$ Taxes receivable, net of allowances 80,983 - - - - - - 80,983 Accounts receivable 480,066 501,046 925 - 115,707 - - 1,097,744 Intergovernmental receivables - - - - - - 59,198 59,198 Lease receivable886,676 - - - - - - 886,676 Restricted cash and cash equivalents- 1,776,828 - - - - - 1,776,828 Total assets 9,246,719 2,333,365 6,859,821 478,587 4,907,401 8,898,190 5,495,460 38,219,543 LIABILITIES Accounts payable 1,987,329 1,847,670 18,201 - 26,609 - 40,316 3,920,125 Retainage payable - 745,272 - - - - - 745,272 Accrued liabilities 362,490 - - - - - 1,632 364,122 Unearned revenues 40,142 - - - - 8,257,899 - 8,298,041 Other accrued liabilities197,214 - - - - - - 197,214 Total liabilities 2,587,175 2,592,942 18,201 - 26,609 8,257,899 41,948 13,524,774 DEFERRED INFLOWS OF RESOURCES Unavailable revenue - property taxes 79,125 - - - - - - 79,125 Deferred lease receipts843,762 - - - - - - 843,762 Total deferred inflows of resources 922,887 - - - - - - 922,887 FUND BALANCESRestricted: Capital projects - - - - - - 127,779 127,779 Victim's assistance 129,781 - - - - - - 129,781 Public safety - fire division - - - - - - 129,913 129,913 Special projects - - - 478,587 4,880,792 640,291 4,885,566 10,885,236 Committed: Capital projects 1,906,876 - 6,738,879 - - - 302,321 8,948,076 Parks, recreation and tourism - - 12,994 - - - - 12,994 Housing and development- - 89,747 - - - - 89,747 Assigned: Capital projects - - - - - - 7,933 7,933 Unassigned 3,700,000 (259,577) - - - - - 3,440,423 Total fund balances 5,736,657 (259,577) 6,841,620 478,587 4,880,792 640,291 5,453,512 23,771,882 Total liabilities, deferred inflows of resources, and fund balances 9,246,719$ 2,333,365$ 6,859,821$ 478,587$ 4,907,401$ 8,898,190$ 5,495,460$ 38,219,543$ CITY OF NORTH AUGUSTA, SOUTH CAROLINA BALANCE SHEET GOVERNMENTAL FUNDSDECEMBER 31, 2023The accompanying notes are an integral part of these financial statements. 17 Fund balances, end of year $ 23,771,882 146,232,705 79,125 2,109,138 (926,472) Compensated absences $ (900,832) Installment purchase revenue bonds (73,509,000) Financed purchases payable (2,021,891) Net pension liability (15,866,043) Total long-term liabilities (92,297,766) (574,673) Net position of governmental activities, end of year $ 78,393,939 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, 2023 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 CapitalTaxNorth AugustaNonmajorTotalGeneral Sales Tax IV ProjectsIncrement Public FacilitiesARPA Governmental GovernmentalFund Fund FundFund Corporation FundFundFundsFundsRevenues:Ad valorem property taxes9,714,091$ -$ 539,559$ 3,428,984$ -$ -$ -$ 13,682,634$ Sales taxes - 3,423,388 - - - - - 3,423,388 Local hospitality and accommodations taxes - - - - - - 2,933,463 2,933,463 Licenses and permits 7,682,907 - - - - - - 7,682,907 Intergovernmental 1,664,728 - - - 216,118 2,577,470 988,439 5,446,755 Charges for services 1,716,786 - - - 590,795 - - 2,307,581 Fines and forfeitures 901,098 - - - - - - 901,098 Interest earnings 354,157 355,443 238,240 14,869 92,617 507,819 145,118 1,708,263 Miscellaneous 993,242 - 30,072 - - - 997,785 2,021,099 Total revenues 23,027,009 3,778,831 807,871 3,443,853 899,530 3,085,289 5,064,805 40,107,188 Expenditures:Current: General government 6,582,377 - 121,981 - 757,033 9,720 - 7,471,111 Public safety 9,442,892 - 5,950 - - - 399,656 9,848,498 Public works1,677,373 - - - - - 440,833 2,118,206 Parks, recreation and tourism 3,448,160 - 92,945 - - - 667,779 4,208,884 Capital outlay 1,164,342 13,603,206 1,279,218 - 102,690 - 884,958 17,034,414 Debt service:Principal retirement 764,175 1,678,000 235,857 - 780,000 - - 3,458,032 Interest and fiscal charges 34,177 92,261 - - 3,161,028 - - 3,287,466 Total expenditures 23,113,496 15,373,467 1,735,951 - 4,800,751 9,720 2,393,226 47,426,611 Excess (deficiency) of revenues over (under) expenditures(86,487) (11,594,636) (928,080) 3,443,853 (3,901,221) 3,075,569 2,671,579 (7,319,423) Other financing sources (uses): Issuance of debt915,681 - - - - - - 915,681 Transfers in1,432,491 - 3,192,874 - 5,251,438 - 141,132 10,017,935 Transfers out(2,176,623) - (249,612) (3,400,000) - (2,567,750) (1,911,180) (10,305,165) Total other financing sources (uses), net171,549 - 2,943,262 (3,400,000) 5,251,438 (2,567,750) (1,770,048) 628,451 Net change in fund balances85,062 (11,594,636) 2,015,182 43,853 1,350,217 507,819 901,531 (6,690,972) Fund balances, beginning of year5,651,595 11,335,059 4,826,438 434,734 3,530,575 132,472 4,551,981 30,462,854 Fund balances, end of year5,736,657$ (259,577)$ 6,841,620$ 478,587$ 4,880,792$ 640,291$ 5,453,512$ 23,771,882$ CITY OF NORTH AUGUSTA, SOUTH CAROLINASTATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS FOR THE YEAR ENDED DECEMBER 31, 2023The 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, 2023 Net change in fund balances - total governmental funds $ (6,690,972) Capital outlays $ 16,792,579 Depreciation expense (5,511,671) 11,280,908 (43,599) (90,105) Issuance of debt $ (915,681) Repayment of the principal of long-term debt 3,458,032 2,542,351 Compensated absences $ (70,559) Accrued interest on long-term debt 5,996 Net pension liability 376,959 312,396 Change in net position of governmental activities $ 7,310,979 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 capital outlays exceeded depreciation 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 $ 9,501,646 $ 9,501,646 $ 9,714,091 $ 212,445 Licenses and permits 6,944,524 6,944,524 7,682,907 738,383 Fines and forfeitures 954,982 954,982 901,098 (53,884) Charges for services 1,280,996 1,280,996 1,716,786 435,790 Intergovernmental 1,062,800 1,062,800 1,664,728 601,928 Interest earnings 45,000 45,000 354,157 309,157 Miscellaneous 976,376 976,376 993,242 16,866 Total revenues 20,766,324 20,766,324 23,027,009 2,260,685 Expenditures: Current: General government 6,761,295 6,761,295 6,582,377 178,918 Public safety 9,340,468 9,340,468 9,442,892 (102,424) Public works 1,956,269 1,956,269 1,677,373 278,896 Parks, recreation and tourism 3,248,663 3,248,663 3,448,160 (199,497) Capital outlay 97,700 97,700 1,164,342 (1,066,642) Debt service: Principal retirement 770,013 770,013 764,175 5,838 Interest and fiscal charges 34,177 34,177 34,177 - Total expenditures 22,208,585 22,208,585 23,113,496 (904,911) Deficiency of revenues under expenditures (1,442,261) (1,442,261) (86,487) 1,355,774 Other financing sources (uses): Issuance of debt - - 915,681 915,681 Transfers in 1,442,261 1,442,261 1,432,491 (9,770) Transfers out - - (2,176,623) (2,176,623) Total other financing sources, net 1,442,261 1,442,261 171,549 (1,270,712) Net change in fund balances - - 85,062 85,062 Fund balances, beginning of year 5,651,595 5,651,595 5,651,595 - Fund balances, end of year $ 5,651,595 $ 5,651,595 $ 5,736,657 $ 85,062 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, 2023 Budget Variance with Final BudgetOriginalFinalActual 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 $ 7,138,556 $ 4,114,278 $ 1,290,149 $ 530,541 $ 13,073,524 Accounts receivable, net of allowances 1,634,930 29,801 - - 1,664,731 Inventory 246,355 - - - 246,355 Restricted cash and cash equivalents 9,242,371 - - - 9,242,371 Total current assets 18,262,212 4,144,079 1,290,149 530,541 24,226,981 NONCURRENT ASSETS Capital assets: Non-depreciable 797,254 200,726 184,976 - 1,182,956 Depreciable, net of accumulated depreciation and amortization 69,981,324 4,181,403 9,928,073 - 84,090,800 Total noncurrent assets 70,778,578 4,382,129 10,113,049 - 85,273,756 Total assets 89,040,790 8,526,208 11,403,198 530,541 109,500,737 DEFERRED OUTFLOWS OF RESOURCES Pensions 427,537 376,336 62,410 - 866,283 Total deferred outflows of resources 427,537 376,336 62,410 - 866,283 LIABILITIES CURRENT LIABILITIES Accounts payable 494,582 98,288 11,712 - 604,582 Accrued liabilities 70,345 49,427 12,043 - 131,815 Customer deposits 628,977 - - - 628,977 Accrued vacation 184,497 133,185 52,273 - 369,955 Unearned revenue 338,642 - - - 338,642 Accrued interest payable 50,152 16,157 194 - 66,503 Current portion of revenue bonds payable 1,125,000 - - - 1,125,000 Current portion of financed purchases payable 193,236 411,589 29,376 - 634,201 Total current liabilities 3,085,431 708,646 105,598 - 3,899,675 NONCURRENT LIABILITIES Revenue bonds payable, net of current portion 13,804,000 - - - 13,804,000 Financed purchases payable, net of current portion 125,010 563,845 50,964 - 739,819 Net pension liability 4,632,369 3,625,508 678,079 - 8,935,956 Total noncurrent liabilities 18,561,379 4,189,353 729,043 - 23,479,775 Total liabilities 21,646,810 4,897,999 834,641 - 27,379,450 DEFERRED INFLOWS OF RESOURCES Pensions 146,513 151,922 32,612 - 331,047 Total deferred inflows of resources 146,513 151,922 32,612 - 331,047 NET POSITION Net investment in capital assets 55,531,332 3,406,695 10,032,709 - 68,970,736 Restricted for debt service 8,613,394 - - - 8,613,394 Restricted for operations - - - 530,541 530,541 Unrestricted 3,530,278 445,928 565,646 - 4,541,852 Total net position $ 67,675,004 $ 3,852,623 $ 10,598,355 $ 530,541 $ 82,656,523 CITY OF NORTH AUGUSTA, SOUTH CAROLINA STATEMENT OF NET POSITION PROPRIETARY FUNDS DECEMBER 31, 2023 Enterprise Fund Nonmajor Enterprise Funds Total Water and Stormwater Utility Fund The accompanying notes are an integral part of these financial statements. 22 Wastewater Sanitation Savannah Bluff System Services Fund Lock and Dam OPERATING REVENUES Charges for services and fees $ 11,202,511 $ 4,370,792 $ 882,998 $ - $ 16,456,301 Sale of recyclables - 98,865 - - 98,865 Miscellaneous 568,723 378,127 28,369 - 975,219 Total operating revenues 11,771,234 4,847,784 911,367 - 17,530,385 OPERATING EXPENSES Finance 731,756 - - - 731,756 Administration 529,645 - - - 529,645 Operations and maintenance 5,920,214 3,036,176 610,037 22,000 9,588,427 Production and treatment 1,816,689 - - - 1,816,689 Material recovery facility - 925,804 - - 925,804 Depreciation and amortization 1,670,318 515,562 381,538 - 2,567,418 Total operating expenses 10,668,622 4,477,542 991,575 22,000 16,159,739 Operating income (loss) 1,102,612 370,242 (80,208) (22,000) 1,370,646 NONOPERATING REVENUES (EXPENSES) Interest income 586,728 136,087 29,595 27,377 779,787 Gain on sale of property 11,900 41,777 - - 53,677 Interest expense and fiscal charges (288,165) (15,572) (1,047) - (304,784) Intergovernmental 23,515 - 1,277,502 - 1,301,017 Total nonoperating revenues (expenses), net 333,978 162,292 1,306,050 27,377 1,829,697 Income before capital contributions and transfers 1,436,590 532,534 1,225,842 5,377 3,200,343 CAPITAL CONTRIBUTIONS 799,614 36,064 831,802 - 1,667,480 TRANSFERS Transfers in 121,088 478,823 1,002,132 - 1,602,043 Transfers out (859,159) (429,314) (26,340) - (1,314,813) Total transfers (738,071) 49,509 975,792 - 287,230 Change in net position 1,498,133 618,107 3,033,436 5,377 5,155,053 Total net position, beginning of year 66,176,871 3,234,516 7,564,919 525,164 77,501,470 Total net position, end of year $ 67,675,004 $ 3,852,623 $ 10,598,355 $ 530,541 $ 82,656,523 Utility Fund CITY OF NORTH AUGUSTA, SOUTH CAROLINA FOR THE YEAR ENDED DECEMBER 31, 2023 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 $ 11,372,836 $ 4,956,288 $ 991,367 $- $ 17,320,491 Payments to suppliers (5,759,221) (2,114,537) (152,771) (24,000) (8,050,529) Payments to employees (2,889,323) (2,091,419) (459,927) - (5,440,669) Net cash provided by (used in) operating activities 2,724,292 750,332 378,669 (24,000) 3,829,293 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Transfers in 121,088 478,823 1,002,132 - 1,602,043 Transfers out (859,159) (429,314) (26,340) - (1,314,813) Net cash provided by (used in) noncapital financing activities (738,071) 49,509 975,792 - 287,230 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Purchases of capital assets (364,214) (2,365,413) (2,306,635) - (5,036,262) Proceeds from the sale of capital assets 11,896 194,080 - - 205,976 Proceeds from the issuance of financed purchases 146,573 599,871 - - 746,444 Principal paid on revenue bonds (1,104,000) - - - (1,104,000) Principal paid on financed purchases (312,267) (486,235) (38,386) - (836,888) Grants received 23,515 - 1,277,502 - 1,301,017 Interest and agent fees paid (292,274) (15,572) (2,376) - (310,222) Net cash used in capital and related financing activities (1,890,771) (2,073,269) (1,069,895) - (5,033,935) CASH FLOWS FROM INVESTING ACTIVITIES Interest received 586,728 136,087 29,595 27,377 779,787 Net cash provided by investing activities 586,728 136,087 29,595 27,377 779,787 Net change in cash and cash equivalents 682,178 (1,137,341) 314,161 3,377 (137,625) Cash and cash equivalents, beginning of year 15,698,749 5,251,619 975,988 527,164 22,453,520 Cash and cash equivalents, end of year $ 16,380,927 $ 4,114,278 $ 1,290,149 $ 530,541 $ 22,315,895 Classified as: Cash and cash equivalents $ 7,138,556 $ 4,114,278 $ 1,290,149 $ 530,541 $ 13,073,524 Restricted assets, cash 9,242,371 - - - 9,242,371 $ 16,380,927 $ 4,114,278 $ 1,290,149 $ 530,541 $ 22,315,895 (Continued) CITY OF NORTH AUGUSTA, SOUTH CAROLINA STATEMENT OF CASH FLOWS PROPRIETARY FUNDS FOR THE YEAR ENDED DECEMBER 31, 2023 Nonmajor Utility Fund Enterprise Funds Water and Stormwater Enterprise Fund Total 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)$ 1,102,612 $ 370,242 $ (80,208) $ (22,000) $ 1,370,646 Adjustments to reconcile operating income (loss) to net cash provided by (used in) operating activities: Depreciation and amortization 1,670,318 515,562 381,538 - 2,567,418 Changes in assets and liabilities: Decrease (increase) in accounts receivable (36,241) 108,504 80,000 - 152,263 Decrease in inventory 14,547 - - - 14,547 Decrease in deferred outflows of resources 40,262 28,041 8,321 - 76,624 Increase (decrease) in accounts payable 48,185 (197,327) 3,196 (2,000) (147,946) Increase in accrued liabilities 20,650 15,399 12,558 - 48,607 Increase in customer deposits 16,829 - - - 16,829 Decrease in unearned revenue (362,157) - - - (362,157) Increase in net pension liability 7,758 5,403 1,603 - 14,764 Decrease in deferred inflows or resources (137,113) (95,492) (28,339) - (260,944) Net cash provided by (used in) operating activities $ 2,724,292 $ 750,332 $ 378,669 $ (24,000) $ 3,829,293 SCHEDULE OF NON-CASH CAPITAL AND RELATED FINANCING ACTIVITIES Contributions of capital assets $ 799,614 $ 36,064 $ 831,802 $- $ 1,667,480 $ 799,614 $ 36,064 $ 831,802 $- $ 1,667,480 CITY OF NORTH AUGUSTA, SOUTH CAROLINA STATEMENT OF CASH FLOWS Utility Fund Enterprise Funds Water and PROPRIETARY FUNDS FOR THE YEAR ENDED DECEMBER 31, 2023 Stormwater Nonmajor Enterprise Fund Total 25 CITY OF NORTH AUGUSTA, SOUTH CAROLINA NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2023 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 Corporation 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 System 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 $5,000. Management can also over-expend appropriations, with the City Administrator’s approval, at the line item and department level, as long as the total expenditures or expenses do not exceed appropriations of the functional area.  Formal budgetary integration is employed as a management control device. A budget is legally adopted annually for the General Fund on a basis consistent with U.S. GAAP.  Annual budgets are not adopted for the Special Revenue Funds or the Capital Projects Funds. These funds budget on a project or activity basis instead of an annual operating cycle basis. Budgets for the enterprise funds are legally adopted annually on a basis consistent with U.S. GAAP except that depreciation is not a budgeted item.  Budgeted amounts are as originally adopted or as amended by the City Council or the City Administrator. There were no individual amendments to the original appropriations, which were adopted and consisted of transferring amounts within departmental accounts. No supplemental appropriations were necessary during the year.  The City employs the use of encumbrance accounting during the year. All encumbrances lapse at the end of the year.  Unexpended appropriations lapse at the end of the year except that a whole or part of appropriations provided in the budget for capital or betterment outlays of any department or activity remaining unexpended at the close of the fiscal year is held available for the following year. 30 NOTES TO FINANCIAL STATEMENTS NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) D. Budgets and Budgetary Accounting (Continued) Excess of Expenditures over Appropriations – For the year ended December 31, 2023, expenditures exceeded budget in the General Fund for the following functions: (Over) Under Function Final Budget Actual Budget Current - Public Safety 9,340,468$ 9,442,892$ (102,424)$ Capital Outlay - Public Safety 15,000 946,870 (931,870) Total Public Safety 9,355,468$ 10,389,762$ (1,034,294)$ Current - Parks, Recreation and Tourism 3,248,663$ 3,448,160$ (199,497)$ Capital Outlay - Parks, Recreation and Tourism 13,500 18,943 (5,443) Total Parks, Recreation and Tourism 3,262,163$ 3,467,103$ (204,940)$ The over-expenditures for Public Safety were due to the purchase of vehicles and equipment with the financed purchases payable proceeds. The over-expenditures for Parks, Recreation & Tourism were due to the increase of large athletic tournaments, slightly offset by the purchase of vehicles and equipment with financed purchase 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 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 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 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. As of December 31, 2023, the Capital projects Sales Tax IV Fund reported a deficit fund balance of $259,577. He deficit will be eliminated through revenues in future periods or through transfers from other 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, 2023, the City’s cash and cash equivalents consisted of the following: Statement of Net Position: Cash $ 47,391,638 Restricted cash 11,019,199 $ 58,410,837 Cash deposited with financial institutions $ 14,295,889 South Carolina Local Governmental Investment Pool 44,114,948 $ 58,410,837 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 fair 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 fair 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 fair 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, 2023, 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 76% 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, 2023, the carrying amount of the City’s deposits was $14,295,889 and the bank balance was $15,662,846. 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, 2023, for its $44,114,948 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, 2023, including the applicable allowances for uncollectible accounts, are as follows: Fund Receivables: Taxes $ 313,176 $ - $ - $- $- $- $- Accounts 480,066 501,046 925 115,707 - 1,680,930 29,081 Intergovernmental - - - - 59,198 - - Leases 886,676 - - - - - - - Gross recievables 1,679,918 501,046 925 115,707 59,198 1,680,930 29,081 Less allowance for uncollectibles: Taxes (232,193) - - - - - - Accounts - - - - - (46,000) - Total allowance (232,193) - - - - (46,000) - Net receivables $ 1,447,725 $ 501,046 $ 925 $ 115,707 $ 59,198 $ 1,634,930 $ 29,081 North Augusta Corporation Governmental Funds Governmental Funds Capital Capital Projects Sales Tax IV Fund General Wastewater System Public FacilitiesProjects Fund Enterprise Funds Nonmajor Water and Services Sanitation The schedule of future lease receipts as of December 31, 2023, is as follows: Year ending December 31, Principal Interest Total 2024 $ 77,608 $ 11,103 $ 88,711 2025 83,487 10,511 93,998 2026 89,786 9,855 99,641 2027 97,510 8,155 105,665 2028 70,946 6,981 77,927 2029-33 467,339 19,245 486,584 Total $ 886,676 $ 65,850 $ 952,526 Governmental Activities 40 NOTES TO FINANCIAL STATEMENTS NOTE 5. CAPITAL ASSETS Capital asset activity for the governmental activities for the year ended December 31, 2023, 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 5,282,192 12,579,595 (7,535) (4,145,415) 13,708,837 Right-of-way 4,215,528 269,009 - - 4,484,537 Total 19,828,111 12,848,604 (7,535) (4,145,415) 28,523,765 Capital assets, being depreciated: Land improvements 23,001,502 842,905 (20,000) - 23,824,407 Buildings 106,324,675 58,392 - 4,145,415 110,528,482 Machinery and equipment 4,387,653 251,271 (76,616) - 4,562,308 Furniture and fixtures 1,559,843 232,592 - - 1,792,435 Vehicles 9,656,675 973,771 (588,785) (55,039) 9,986,622 Infrastructure 32,550,101 1,585,044 - - 34,135,145 Total 177,480,449 3,943,975 (685,401) 4,090,376 184,829,399 Less accumulated depreciation for: Land improvements (12,484,077) (815,819) 20,000 - (13,279,896) Buildings (22,166,578) (2,570,191) - - (24,736,769) Machinery and equipment (2,316,884) (345,581) 76,616 - (2,585,849) Furniture and fixtures (1,523,880) (24,818) - - (1,548,698) Vehicles (6,440,679) (668,185) 588,785 18,975 (6,501,104) Infrastructure (17,381,066) (1,087,077) - - (18,468,143) Total (62,313,164) (5,511,671) 685,401 18,975 (67,120,459) Total capital assets, being depreciated, net 115,167,285 (1,567,696) - 4,109,351 117,708,940 Governmental activities capital assets, net $ 134,995,396 $ 11,280,908 $ (7,535) $ (36,064) $ 146,232,705 41 NOTES TO FINANCIAL STATEMENTS NOTE 5. CAPITAL ASSETS (CONTINUED) Capital asset activity for the business-type activities for the year ended December 31, 2023, 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 1,421,360 - (1,765,768) 296,138 Easements 62,760 - - - 62,760 Total 1,527,364 1,421,360 - (1,765,768) 1,182,956 Capital assets, being depreciated: Land improvements 88,650 - - - 88,650 Buildings 24,178,306 - (1,449,978) 1,765,768 24,494,096 Machinery and equipment 3,413,005 367,425 (394,325) - 3,386,105 Vehicles 5,154,290 925,567 (508,364) 55,039 5,626,532 System improvements 80,028,807 3,953,326 - - 83,982,133 PSA Capital 4,667,405 - - - 4,667,405 Service rights 100,000 - - - 100,000 Total 117,630,463 5,246,318 (2,352,667) 1,820,807 122,344,921 Less accumulated depreciation for: Land improvements (7,112) (3,546) - - (10,658) Buildings (6,060,008) (667,745) 1,297,679 - (5,430,074) Machinery and equipment (2,414,803) (151,269) 394,325 - (2,171,747) Vehicles (3,714,160) (372,252) 508,364 (18,975) (3,597,023) System improvements (22,464,847) (1,308,124) - - (23,772,971) PSA Capital (3,120,647) (61,982) - - (3,182,629) Service rights (86,519) (2,500) - - (89,019) Total (37,868,096) (2,567,418) 2,200,368 (18,975) (38,254,121) Total capital assets, being depreciated, net 79,762,367 2,678,900 (152,299) 1,801,832 84,090,800 Business-type activities capital assets, net $ 81,289,731 $ 4,100,260 $ (152,299) $ 36,064 $ 85,273,756 Included in current year additions are contributed systems in the amount of $799,614 for the water and wastewater system and $831,802 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 $ 2,356,274 Public safety 822,522 Public works 1,461,869 Parks, recreation and tourism 871,006 Total depreciation expense - governmental activities $ 5,511,671 Governmental activities Water and Wastewater System $ 1,670,318 Sanitation Services 515,562 Stormwater Utility 381,538 Total depreciation and amortization expense - business-type activities $ 2,567,418 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, 2023, was as follows: Beginning Ending Due within Balance Additions Reductions Balance One Year Governmental activities Revenue bonds: North Augusta Public Facility Corporation bonds $ 67,375,000 $- $ (780,000) $ 66,595,000 $ 855,000 General obligation bonds 8,592,000 - (1,678,000) 6,914,000 1,698,000 Financed purchases payable 2,106,242 915,681 (1,000,032) 2,021,891 769,092 Compensated absences 830,273 612,830 (542,271) 900,832 716,830 Net pension liability 16,232,907 1,093,688 (1,460,552) 15,866,043 - Total long-term liabilities $ 95,136,422 $ 2,622,199 $ (5,460,855) $ 92,297,766 $ 4,038,922 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, 2023, 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 financed purchase payable 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 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 1,505,000 2,983,041 4,488,041 2029 - 2033 9,790,000 13,914,065 23,704,065 2034 - 2038 11,125,000 11,519,325 22,644,325 2039 - 2043 16,000,000 8,482,167 24,482,167 2044 - 2048 23,875,000 3,763,689 27,638,689 Total $ 66,595,000 $ 53,014,764 $ 119,609,764 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, 2023, 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 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 $ 6,914,000 $ 165,767 $ 7,079,767 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 2024 $ 769,092 $ 37,759 $ 806,851 2025 645,439 27,938 673,377 2026 418,013 16,099 434,112 2027 189,347 6,655 196,002 Total $ 2,021,891 $ 88,451 $ 2,110,342 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, 2023, was as follows: Beginning Ending Due within Balance Additions Reductions Balance One Year Business-type activities Revenue bonds payable $ 16,033,000 $- $ (1,104,000) $ 14,929,000 $ 1,125,000 Financed purchases payable 1,464,464 746,444 (836,888) 1,374,020 634,201 Compensated absences 348,475 263,777 (242,297) 369,955 369,955 Net pension liability 8,921,192 676,006 (661,242) 8,935,956 - Total long-term liabilities $ 26,767,131 $ 1,686,227 $ (2,844,427) $ 25,608,931 $ 2,129,156 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, 2023, 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 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 1,208,000 174,690 1,382,690 2029 - 2033 6,379,000 536,157 6,915,157 2034 - 2036 2,722,000 60,066 2,782,066 Total $ 14,929,000 $ 1,681,317 $ 16,610,317 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 2023 totaled $1,382,658. Total net charges for services for the year were $11,771,234. 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 2024 $ 193,236 $ 2,489 $ 195,725 2025 65,410 1,140 66,550 2026 29,285 232 29,517 2027 30,315 1,066 31,381 Total $ 318,246 $ 4,927 $ 323,173 Water and Wastewater Year ending December 31, Principal Interest Total 2024 $ 411,589 $ 25,095 $ 436,684 2025 296,246 18,156 314,402 2026 143,556 11,039 154,595 2027 124,043 4,360 128,403 Total $ 975,434 $ 58,650 $ 1,034,084 Sanitation Services Year ending December 31, Principal Interest Total 2024 $ 29,376 $307 $ 29,683 2025 50,964 703 51,667 Total $ 80,340 $ 1,010 $ 81,350 Stormwater Utility 48 NOTES TO FINANCIAL STATEMENTS NOTE 7. PROPERTY TAXES Taxes on real property and merchants’ inventory are levied on January 1 of each year and are based on ownership of such property and inventory as of January 1 of the preceding year. These taxes are billed and payable between January 1 and May 1 of the year in which they are levied. As of May 1, property taxes attach as an enforceable lien on property. The City bills and collects its own real and merchants’ ad valorem taxes. Taxes on personal property are levied and billed in the month prior to the renewal of the annual vehicle registration through the State Highway Department and are payable prior to the registration and tag purchase. Ad valorem taxes on personal property (vehicles) are billed and collected by the County Treasurer and remitted to the City on a monthly basis. City property tax revenues are recognized in the year for which taxes have been levied and are collectible either during that year or within 60 days following year-end. NOTE 8. 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. 49 NOTES TO FINANCIAL STATEMENTS NOTE 8. DEFINED BENEFIT PENSION PLAN (CONTINUED) Overview (Continued): PEBA issues an Annual Comprehensive Financial Report (ACFR) containing financial statements and required supplementary information for the Systems’ Pension Trust Funds. The ACFR is publicly available through PEBA’s website at www.peba.sc.gov, or a copy may be obtained by submitting a request to PEBA, 202 Arbor Lake Drive, Columbia, SC 29223. PEBA is considered a division of the primary government of the state of South Carolina and therefore, retirement trust fund financial information is also included in the ACFR of the state. Plan Description: The City contributes to the South Carolina Retirement System (SCRS), a cost–sharing multiple- employer defined benefit pension plan that was established July 1, 1945, pursuant to the provisions of Section 9-1-20 of the South Carolina Code of Laws for the purpose of providing retirement and other benefits for teachers and employees of the state and its political subdivisions. SCRS covers employees of state agencies, public school districts, higher education institutions, other participating local subdivisions of government and individuals newly elected to the South Carolina General Assembly at or after the 2012 general election. In addition to the SCRS pension plan, the City has also contributed to the South Carolina Police Officers Retirement System (PORS), a cost–sharing multiple-employer defined benefit pension plan that was established July 1, 1962, pursuant to the provisions of Section 9-11-20 of the South Carolina Code of Laws for the purpose of providing retirement and other benefits to police officers and firefighters. PORS also covers peace officers, coroners, probate judges and magistrates. Membership: Membership requirements are prescribed in Title 9 of the South Carolina Code of Laws. A brief summary of the requirements under each system is described as follows. SCRS - Generally, all employees of covered employers are required to participate in and contribute to the SCRS as a condition of employment. This plan covers general employees, teachers and individuals newly elected to the South Carolina General Assembly beginning with the November 2012 general election. An employee member of the system with an effective date of membership prior to July 1, 2012, is a Class Two member. An employee member of the system with an effective date of membership on or after July 1, 2012, is a Class Three member. 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. 50 NOTES TO FINANCIAL STATEMENTS NOTE 8. DEFINED BENEFIT PENSION PLAN (CONTINUED) Membership (Continued): Magistrates are required to participate in PORS for service as a magistrate. PORS members, other than magistrates and probate judges, must also earn at least $2,000 per year and devote at least 1,600 hours per year to this work, unless exempted by statute. An employee member of the system with an effective date of membership prior to July 1, 2012, is a Class Two member. An employee member of the system with an effective date of membership on or after July 1, 2012, is a Class Three member. Benefits: Benefit terms are prescribed in Title 9 of the South Carolina Code of Laws. PEBA does not have the authority to establish or amend benefit terms without a legislative change in the code of laws. Key elements of the benefit calculation include the benefit multiplier, years of service, and average final compensation. A brief summary of the benefit terms for each system is presented below. SCRS - A Class Two member who has separated from service with at least five or more years of earned service is eligible for a monthly pension at age 65 or with 28 years credited service regardless of age. A member may elect early retirement with reduced pension benefits payable at age 55 with 25 years of service credit. A Class Three member who has separated from service with at least eight or more years of earned service is eligible for a monthly pension upon satisfying the Rule of 90 requirement that the total of the member’s age and the member’s creditable service equals at least 90 years. Both Class Two and Class Three members are eligible to receive a reduced deferred annuity at age 60 if they satisfy the five- or eight-year earned service requirement, respectively. An incidental death benefit is also available to beneficiaries of active or retired members of employees who participate in the death benefit program. The annual retirement allowance of eligible retirees or their surviving annuitants is increased by the lesser of 1% or $500 every July 1. Only those annuitants in receipt of a benefit on July 1 of the preceding year are eligible to receive the increase. Members who retire under the early retirement provisions at age 55 with 25 years of service are not eligible for the benefit adjustment until the second July 1 after reaching age 60 or the second July 1 after the date they would have had 28 years of service credit had they not retired. 51 NOTES TO FINANCIAL STATEMENTS NOTE 8. DEFINED BENEFIT PENSION PLAN (CONTINUED) Benefits (Continued): PORS - A Class Two member who has separated from service with at least five or more years of earned service is eligible for a monthly pension at age 55 or with 25 years of service regardless of age. A Class Three member who has separated from service with at least eight or more years of earned service is eligible for a monthly pension at age 55 or with 27 years of service regardless of age. Both Class Two and Class Three members are eligible to receive a deferred annuity at age 55 with five or eight years of earned service, respectively. An incidental death benefit is also available to beneficiaries of active and retired members of employers who participate in the death benefit program. Accidental death benefits are also provided upon the death of an active member working for a covered employer whose death was a natural and proximate result of an injury incurred while in the performance of duty. The retirement allowance of eligible retirees or their surviving annuitants is increased by the lesser of 1% or $500 every July 1. Only those annuitants in receipt of a benefit on July 1 of the preceding year are eligible to receive the increase. Contributions: Actuarial valuations are performed annually by an external consulting actuary to ensure applicable contribution rates satisfy the funding parameters specified in Title 9 of the South Carolina Code of Laws. Under these provisions, SCRS and PORS contribution requirements must be sufficient to maintain an amortization period for the financing of the unfunded actuarial accrued liability (UAAL) over a period that does not exceed the number of years scheduled in state statute. Effective July 1, 2017, employee rates were increased and capped at 9 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 until reaching 18.56 percent for SCRS and 21.24 percent for PORS. The legislation included a further provision that if the scheduled contributions are not sufficient to meet the funding periods set in state statute, the PEBA board would increase the employer contribution rates as necessary to meet the funding periods set for the applicable year. 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, 2023, the City contributed $1,661,729 and $970,459, to the SCRS and PORS plans, respectively. 52 NOTES TO FINANCIAL STATEMENTS NOTE 8. DEFINED BENEFIT PENSION PLAN (CONTINUED) Contributions (Continued): Required employee contribution rates for the year ended December 31, 2023, are as follows: South Carolina Retirement System 9.00% of earnable compensation South Carolina Police Officers Retirement System 9.75% of earnable compensation Required employer contribution rates for the year ended December 31, 2023, are as follows: South Carolina Retirement System 17.41% of earnable compensation from January 1st through June 30th 18.41% of earnable compensation from July 1st through December 31st Employer incidental death benefit: 0.15% of earnable compensation South Carolina Police Officers Retirement System 19.84% of earnable compensation from January 1st through June 30th 20.84% of earnable compensation from July 1st through December 31st Employer incidental death benefit: 0.20% of earnable compensation Net Pension Liability: The June 30, 2023, (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, 2022 actuarial valuation. The total pension liability was rolled-forward from the valuation date to the plan’s fiscal year ended June 30, 2023, 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, 2023, (measurement date of June 30, 2023), the net pension liability amounts for the City’s proportionate share of the collective net pension liabilities associated with the SCRS and PORS plans are as follows: Plan Fiduciary Total Plan Employer's Net Position as City's Proportionate Pension Fiduciary Net Net Pension a Percentage of the Share of the Collective System Liability Position Liability Total Pension Liability Net Pension Liability SCRS 41,205,711$ 24,165,377$ 17,040,334$ 58.6%0.070480% PORS 24,095,098$ 16,333,433$ 7,761,665$ 67.8%0.254974% 53 NOTES TO FINANCIAL STATEMENTS NOTE 8. DEFINED BENEFIT PENSION PLAN (CONTINUED) Actuarial Assumptions and Methods: Actuarial valuations of the ongoing plan involve estimates of the reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality and future salary increases. Amounts determined regarding the net pension liability are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. South Carolina state statute requires that an actuarial experience study be completed at least once in each five-year period. An experience report on the Systems was most recently issued for the period ending June 30, 2019. The June 30, 2023, 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, 2022. The total pension liability was rolled-forward from the valuation date to the plans’ fiscal year end, June 30, 2023, using generally accepted actuarial principles. There was no legislation enacted during the 2023 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, 2022, 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% 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 2023 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%6.62%3.04% Bonds 26.0%0.31%0.08% Private Equity 9.0%10.91%0.98% Private Debt 7.0%6.16%0.43% Real Assets 12.0% Real Estate 9.0%6.41%0.58% Infrastructure 3.0%6.62%0.20% 100.0% Total expected real return 5.31% Inflation for actuarial purposes 2.25% Total expected nominal return 7.56% 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 $ 22,017,641 $ 17,040,334 $ 12,903,233 PORS $ 10,948,986 $ 7,761,665 $ 5,150,831 (8%)(6%) 1% Decrease 1% Increase Deferred Outflows and Inflows of Resources Related to Pensions: At December 31, 2023, 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 $ 295,850 $ 47,255 Changes of assumptions 261,083 - Net difference between projected and actual earnings on pension plan investments - 23,324 Changes in proportionate share and differences between employer contributions and proportionate share of total plan employer contributions 197,424 628,349 Employer contributions subsequent to the measurement date 860,172 - Total $ 1,614,529 $ 698,928 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 $ 365,271 $ 95,685 Changes of assumptions 168,926 - Net difference between projected and actual earnings on pension plan investments - 13,320 Changes in proportionate share and differences between employer contributions and proportionate share of total plan employer contributions 323,250 449,586 Employer contributions subsequent to the measurement date 503,445 - Total $ 1,360,892 $ 558,591 Deferred Deferred Outflows of Inflows of Resources Resources City contributions subsequent to the measurement date of $860,172 and $503,445 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, 2024. 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 2024 $ 121,412 $ 181,308 2025 (570,434) (151,673) 2026 514,448 277,340 2027 (9,997) (8,119) 57 NOTES TO FINANCIAL STATEMENTS NOTE 8. DEFINED BENEFIT PENSION PLAN (CONTINUED) Pension Expense: For the year ended December 31, 2023 (measurement period ended June 30, 2023), the City recognized its proportionate share of collective pension expense of $1,682,614 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 ($396,690) for a total of $1,285,924 for the SCRS plan. Additionally, for the year ended December 31, 2023 (measurement period ended June 30, 2023), the City recognized its proportionate share of collective pension expense of $913,445 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 ($113,703) for a total of $799,742 for the PORS plan. Total pension expense for both the SCRS plan and the PORS plan amounted to $2,085,666. NOTE 9. INTERFUND TRANSFERS The following interfund transfers are reflected in the fund financial statements at December 31, 2023: Governmental Funds General Fund $ 1,432,491 $ 2,176,623 Capital Projects Fund 3,192,874 249,612 Tax Increment Fund - 3,400,000 North Augusta Public Facilities Corporation 5,251,438 - ARPA Fund - 2,567,750 Nonmajor Funds 141,132 1,911,180 Total Governmental Funds 10,017,935 10,305,165 Enterprise Funds Water and Wastewater System Fund 121,088 859,159 Sanitation Services Fund 478,823 429,314 Stormwater Utility Fund 1,002,132 26,340 Total Enterprise Funds 1,602,043 1,314,813 Total Transfers $ 11,619,978 $ 11,619,978 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. In addition to the above interfund transfers, the governmental activities also transferred $36,064 in capital equipment to the business-type activities. 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, 2023, are composed of the following: Public Safety Headquarters $ 27,700,000 $ 11,151,996 $ 16,548,004 Southwest Interceptor Pipeline Rehab 3,935,004 207,450 3,727,554 Clay Street Booster Pump Station Upgrade 3,123,632 97,326 3,026,306 Boat Dock and Overlook 950,000 35,167 914,833 Amphitheather Rest Area and Expansion 828,782 - 828,782 Project Authorization Expended through December 31, 2023 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, 2023, 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, 2023, the City’s taxes were reduced as a part of the FILOT agreement previously disclosed in the amount of $23,569. 61 REQUIRED SUPPLEMENTARY INFORMATION CITY OF NORTH AUGUSTA, SOUTH CAROLINA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY FOR THE YEAR ENDED DECEMBER 31, SOUTH CAROLINA RETIREMENT SYSTEM Plan Year Ended June 30 City's proportion of the net pension liability City's proportionate share of the net pension liability City's covered payroll City's share of the net pension liability as a percentage of its covered payroll Plan fiduciary net position as a percentage of the total pension liability 2023 0.07%17,040,334$ 8,911,035$ 191.2%58.65% 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 2023 0.25%7,761,665$ 4,467,387$ 173.7%67.79% 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 2023 $ 1,661,729 $ 1,661,729 $- $ 9,199,222 18.06% 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% 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 2023 $ 970,459 $ 970,459 $- $ 4,677,652 20.75% 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% 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, 2021 July 1, 2021 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 26 years maximum,26 years maximum, closed period closed period Investment return 7.00%7.00% 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 21 years of service. Mortality 2020 Public Retirees of South Carolina Mortality 2020 Public Retirees of South Carolina Mortality Tables for Males and Females, both projected Tables for Males and Females, both projected at Scale UMP from the year 2020. Male rates are at Scale UMP from the year 2020. Male rates are multiplied by 97% for non-educators and 95% multiplied by 127% and females rates are for educators. Female rates multiplied by 107% multiplied by 107%. for non-educators and 94% for educators. 64 OTHER SUPPLEMENTARY INFORMATION Revenues: Taxes Current $ 9,414,646 $ 9,414,646 $ 9,516,882 $ 102,236 Delinquent 7,000 7,000 77,977 70,977 Penalties 80,000 80,000 119,232 39,232 Total taxes 9,501,646 9,501,646 9,714,091 212,445 Licenses and permits Business licenses 6,372,524 6,372,524 6,993,010 620,486 Building permits 500,000 500,000 539,322 39,322 Electrical permits 22,000 22,000 49,683 27,683 Mechanical permits 20,000 20,000 40,541 20,541 Plumbing permits 15,000 15,000 19,820 4,820 Grading permits 15,000 15,000 40,531 25,531 Total licenses and permits 6,944,524 6,944,524 7,682,907 738,383 Intergovernmental State of South Carolina: State shared revenue 641,347 641,347 779,959 138,612 Accommodations tax 31,000 31,000 37,796 6,796 Merchants' inventory tax 54,700 54,700 54,790 90 Local option sales tax 35,000 35,000 64,823 29,823 Law enforcement net grant 10,000 10,000 3,996 (6,004) Department of Justice grant 5,000 5,000 8,973 3,973 Highway safety grant 95,000 95,000 49,788 (45,212) Aiken County FILOT 100,000 100,000 196,958 96,958 State SRO grant 90,753 90,753 467,645 376,892 Total intergovernmental 1,062,800 1,062,800 1,664,728 601,928 Charges for services Fire protection fees 41,544 41,544 41,068 (476) Customer street light fees 101,292 101,292 107,202 5,910 Municipal Center rentals 39,500 39,500 83,084 43,584 Recreation fees: Special programs 13,000 13,000 10,892 (2,108) Volleyball 9,460 9,460 13,540 4,080 Soccer 76,500 76,500 74,648 (1,852) Miscellaneous 117,000 117,000 161,273 44,273 Basketball 56,845 56,845 59,686 2,841 Softball 38,530 38,530 44,026 5,496 Football 49,260 49,260 65,507 16,247 Baseball 65,910 65,910 84,853 18,943 Concession stand 160,000 160,000 112,131 (47,869) Community Center fees 67,975 67,975 82,894 14,919 Activities Center fees 149,680 149,680 203,241 53,561 Recreation facilities rentals 58,000 58,000 75,280 17,280 Activities Center tournaments 236,500 236,500 497,461 260,961 Total charges for services 1,280,996 1,280,996 1,716,786 435,790 Fines and forfeitures Public safety fines 934,982 934,982 879,374 (55,608) Drug related fines 15,000 15,000 21,724 6,724 Court costs 5,000 5,000 - (5,000) Total fines and forfeitures 954,982 954,982 901,098 (53,884) Miscellaneous Other 708,576 708,576 734,338 25,762 Communication tower rental 267,800 267,800 258,904 (8,896) Interest earnings 45,000 45,000 354,157 309,157 Total miscellaneous 1,021,376 1,021,376 1,347,399 326,023 Total revenues $ 20,766,324 $ 20,766,324 $ 23,027,009 $ 2,260,685 (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, 2023 65 Expenditures: General Government City Council Personal services: Salaries and wages $ 116,818 $ 116,818 $ 118,597 $ (1,779) FICA 8,937 8,937 8,523 414 Employee retirement 21,097 21,097 17,222 3,875 Employee insurance 18,600 18,600 16,326 2,274 Workers' compensation 3,423 3,423 2,999 424 Operating expenditures: General supplies/postage 7,300 7,300 4,895 2,405 Dues/training/travel 11,900 11,900 11,252 648 Advertising 1,625 1,625 951 674 Professional services 7,100 7,100 411 6,689 Special department supplies 3,250 3,250 90 3,160 Insurance 1,355 1,355 1,754 (399) Contingencies 2,000 2,000 2,458 (458) Total city council 203,405 203,405 185,478 17,927 City Administration Personal services: Salaries and wages 345,677 345,677 332,768 12,909 FICA 26,444 26,444 24,006 2,438 Employee retirement 62,430 62,430 59,184 3,246 Employee insurance 18,600 18,600 16,326 2,274 Workers' compensation 9,991 9,991 8,755 1,236 Operating expenditures: General supplies/postage 2,000 2,000 933 1,067 Dues/training/travel 17,000 17,000 12,115 4,885 Contracts/repairs 3,500 3,500 5,048 (1,548) Professional services 47,500 47,500 37,375 10,125 Insurance 6,416 6,416 92,858 (86,442) Contingencies 50,000 50,000 2,886 47,114 Total city administration 589,558 589,558 592,254 (2,696) Justice and Law Personal services: Salaries and wages 127,996 127,996 146,230 (18,234) FICA 9,792 9,792 10,738 (946) Employee retirement 23,116 23,116 21,479 1,637 Employee insurance 9,300 9,300 8,163 1,137 Workers' compensation 3,983 3,983 3,490 493 Operating expenditures: General supplies/postage 3,000 3,000 570 2,430 State fees/fines 469,645 469,645 516,745 (47,100) Dues/training/travel 5,750 5,750 3,256 2,494 Data processing 3,680 3,680 497 3,183 Contracts/repairs 2,400 2,400 488 1,912 Jury services 3,000 3,000 520 2,480 Professional services 25,000 25,000 25,113 (113) Juvenile detention 3,000 3,000 150 2,850 Insurance 33,695 33,695 43,619 (9,924) Total justice and law 723,357 723,357 781,058 (57,701) (Continued) CITY OF NORTH AUGUSTA, SOUTH CAROLINA GENERAL FUND SCHEDULE OF REVENUES AND EXPENDITURES COMPARED WITH BUDGET FOR THE YEAR ENDED DECEMBER 31, 2023 Budget Variance with Actual Final BudgetOriginalFinal 66 Expenditures (Continued): General Government (Continued) Community Promotion Operating expenditures: Contributions $ 30,600 $ 30,600 $ 30,593 $ 7 Dues/training/travel 5,931 5,931 6,113 (182) Special department supplies 15,250 15,250 11,072 4,178 Insurance 2,749 2,749 3,559 (810) Total community promotion 54,530 54,530 51,337 3,193 Finance Personal services: Salaries and wages 308,482 308,482 315,838 (7,356) FICA 23,599 23,599 23,156 443 Employee retirement 55,712 55,712 56,366 (654) Employee insurance 37,200 37,200 32,653 4,547 Workers' compensation 9,737 9,737 8,532 1,205 Operating expenditures: General supplies/postage 13,500 13,500 13,654 (154) Dues/training/travel 2,525 2,525 2,571 (46) Data processing 33,575 33,575 44,635 (11,060) Contracts/repairs 21,400 21,400 21,300 100 Advertising 1,600 1,600 1,437 163 Professional services 26,280 26,280 31,064 (4,784) Insurance 4,321 4,321 5,594 (1,273) Total finance 537,931 537,931 556,800 (18,869) City Buildings Personal services: Salaries and wages 82,349 82,349 68,448 13,901 FICA 6,300 6,300 5,072 1,228 Employee retirement 14,872 14,872 12,285 2,587 Employee insurance 18,600 18,600 16,326 2,274 Workers' compensation 2,150 2,150 1,884 266 Operating expenditures: General supplies/postage 27,000 27,000 22,304 4,696 Auto operating 2,500 2,500 1,724 776 Utility services 178,100 178,100 352,139 (174,039) Contracts/repairs 75,235 75,235 63,174 12,061 Professional services 6,700 6,700 5,824 876 Special department supplies 20,000 20,000 14,294 5,706 Insurance 17,328 17,328 22,432 (5,104) Uniforms 1,000 1,000 648 352 Total city buildings 452,134 452,134 586,554 (134,420) Building Standards Personal services: Salaries and wages 331,234 331,234 318,255 12,979 FICA 25,339 25,339 23,225 2,114 Employee retirement 59,821 59,821 56,065 3,756 Employee insurance 48,825 48,825 42,857 5,968 Workers' compensation 8,919 8,919 7,815 1,104 Operating expenditures: General supplies/postage 3,000 3,000 2,975 25 Dues/training/travel 4,000 4,000 2,841 1,159 Auto operating 8,350 8,350 7,833 517 Data processing 17,100 17,100 20,568 (3,468) Contracts/repairs 3,550 3,550 2,860 690 Uniforms/clothing 1,550 1,550 1,685 (135) Professional services 10,000 10,000 7,823 2,177 Special department supplies 2,600 2,600 3,432 (832) Insurance 3,230 3,230 4,181 (951) Total building standards 527,518 527,518 502,415 25,103 (Continued) CITY OF NORTH AUGUSTA, SOUTH CAROLINA GENERAL FUND SCHEDULE OF REVENUES AND EXPENDITURES COMPARED WITH BUDGET FOR THE YEAR ENDED DECEMBER 31, 2023 Budget Variance with Original Final Actual Final Budget 67 Expenditures (Continued): General Government (Continued) Human Resources Personal services: Salaries and wages $ 169,017 $ 169,017 $ 142,592 $ 26,425 FICA 12,930 12,930 10,411 2,519 Employee retirement 30,525 30,525 24,820 5,705 Employee insurance 18,600 18,600 16,327 2,273 Workers' compensation 4,646 4,646 4,071 575 Operating expenditures: General supplies/postage 4,430 4,430 3,411 1,019 Dues/training/travel 5,000 5,000 3,361 1,639 Contracts/repairs 900 900 1,023 (123) Advertising 7,000 7,000 119 6,881 Professional services 37,644 37,644 27,713 9,931 Special department supplies 40,800 40,800 30,950 9,850 Insurance 4,966 4,966 6,429 (1,463) Total human resources 336,458 336,458 271,227 65,231 Planning and Development Personal services: Salaries and wages 437,092 437,092 438,808 (1,716) FICA 33,438 33,438 32,779 659 Employee retirement 78,939 78,939 56,417 22,522 Employee insurance 60,450 60,450 53,061 7,389 Workers' compensation 11,114 11,114 9,739 1,375 Operating expenditures: General supplies/postage 5,000 5,000 2,506 2,494 Dues/training/travel 8,000 8,000 5,797 2,203 Auto operating 4,380 4,380 2,621 1,759 Data processing 8,575 8,575 9,474 (899) Contracts/repairs 2,500 2,500 4,377 (1,877) Advertising 2,000 2,000 1,618 382 Professional services 205,000 205,000 5,227 199,773 Special department supplies 5,000 5,000 2,978 2,022 Insurance 19,287 19,287 24,968 (5,681) Capital outlay: Downtown development 25,200 25,200 - 25,200 Total planning and development 905,975 905,975 650,370 255,605 Property Maintenance Personal services: Salaries and wages 818,675 818,675 777,778 40,897 Overtime pay 23,150 23,150 29,797 (6,647) FICA 64,400 64,400 59,133 5,267 Employee retirement 152,034 152,034 143,969 8,065 Employee insurance 167,400 167,400 146,938 20,462 Workers' compensation 23,696 23,696 21,498 2,198 Unemployment insurance - - 5,791 (5,791) Operating expenditures: General supplies/postage 1,485 1,485 2,379 (894) Dues/training/travel 3,650 3,650 3,017 633 Auto operating 41,021 41,021 43,609 (2,588) Utility services 14,884 14,884 19,840 (4,956) Contracts/repairs 39,640 39,640 62,810 (23,170) Building materials/supplies 800 800 801 (1) Uniforms/clothing 13,860 13,860 9,747 4,113 Professional services 48,900 48,900 51,914 (3,014) Special department supplies 221,260 221,260 239,709 (18,449) Insurance 21,985 21,985 34,032 (12,047) Capital outlay: Automotive equipment - - 89,635 (89,635) Machines/equipment 8,000 8,000 11,013 (3,013) Total property maintenance 1,664,840 1,664,840 1,753,410 (88,570) (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, 2023 Budget Variance with 68 Expenditures (Continued): General Government (Continued) Information Technology Personal services: Salaries and wages $ 279,992 $ 279,992 $ 274,571 $5,421 FICA 21,419 21,419 20,215 1,204 Employee retirement 50,566 50,566 49,062 1,504 Employee insurance 37,200 37,200 32,653 4,547 Workers' compensation 8,124 8,124 7,119 1,005 Operating expenditures: General supplies/postage 5,900 5,900 2,816 3,084 Dues/training/travel 12,350 12,350 9,549 2,801 Auto operating 2,862 2,862 675 2,187 Utility services 96,700 96,700 139,827 (43,127) Data processing 103,121 103,121 97,498 5,623 Contracts/repairs 160,700 160,700 92,434 68,266 Insurance 19,855 19,855 25,703 (5,848) Capital outlay: Office machines 36,000 36,000 32,587 3,413 Total information technology 834,789 834,789 784,709 50,080 Total current general government 6,761,295 6,761,295 6,582,377 178,918 Total capital outlay general government 69,200 69,200 133,235 (64,035) Total general government 6,830,495 6,830,495 6,715,612 114,883 Public Safety Personal services: Salaries and wages 5,330,467 5,330,467 5,397,916 (67,449) Overtime pay 184,876 184,876 348,020 (163,144) FICA 421,924 421,924 417,729 4,195 Employee retirement 1,121,810 1,121,810 1,118,695 3,115 Employee insurance 874,200 874,200 767,345 106,855 Workers' compensation 155,021 155,021 165,346 (10,325) Operating expenditures: General supplies/postage 31,000 31,000 22,908 8,092 Dues/training/travel 57,500 57,500 56,012 1,488 Auto operating 317,750 317,750 280,120 37,630 Data processing 200,265 200,265 188,489 11,776 Contracts/repairs 163,570 163,570 172,348 (8,778) Uniforms/clothing 114,250 114,250 116,690 (2,440) CVA expenditures 36,400 36,400 35,396 1,004 LEN grant 10,000 10,000 5,280 4,720 Community policing 34,400 34,400 31,012 3,388 NAPS drug related 20,000 20,000 21,886 (1,886) Professional services 26,700 26,700 28,039 (1,339) Animal control services 36,800 36,800 11,887 24,913 Special department supplies 113,200 113,200 99,760 13,440 Insurance 90,335 90,335 158,014 (67,679) Capital outlay: Vehicles - - 905,921 (905,921) Machines/equipment 15,000 15,000 40,949 (25,949) Total current public safety 9,340,468 9,340,468 9,442,892 (102,424) Total capital outlay public safety 15,000 15,000 946,870 (931,870) Total public safety 9,355,468 9,355,468 10,389,762 (1,034,294) (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, 2023 69 Expenditures (Continued): Public Works Engineering Personal services: Salaries and wages $ 228,883 $ 228,883 $ 224,849 $4,034 FICA 17,510 17,510 16,304 1,206 Employee retirement 41,336 41,336 39,873 1,463 Employee insurance 27,900 27,900 24,490 3,410 Workers' compensation 5,831 5,831 5,329 502 Operating expenditures: General supplies/postage 500 500 121 379 Dues/training/travel 3,057 3,057 2,790 267 Auto operating 4,275 4,275 2,174 2,101 Data processing 8,000 8,000 7,172 828 Contracts/repairs 3,500 3,500 2,717 783 Uniforms/clothing 1,000 1,000 1,307 (307) Advertising 100 100 - 100 Professional services 1,000 1,000 89 911 Special department supplies 1,500 1,500 608 892 Insurance 1,491 1,491 1,930 (439) Total engineering 345,883 345,883 329,753 16,130 Street Lighting and Traffic Signals Operating expenditures: Dues/training/travel 1,350 1,350 - 1,350 Utility services 432,000 432,000 425,979 6,021 Contracts/repairs 3,000 3,000 4,176 (1,176) Special department supplies 12,000 12,000 1,437 10,563 Insurance 25,875 25,875 33,496 (7,621) Total street lighting and traffic signals 474,225 474,225 465,088 9,137 Streets and Drains Personal services: Salaries and wages 541,000 541,000 404,696 136,304 Overtime pay 8,862 8,862 3,755 5,107 FICA 42,064 42,064 30,421 11,643 Employee retirement 99,305 99,305 73,611 25,694 Employee insurance 102,300 102,300 89,796 12,504 Workers' compensation 15,778 15,778 14,240 1,538 Operating expenditures: General supplies/postage 1,000 1,000 114 886 Dues/training/travel 2,900 2,900 398 2,502 Auto operating 47,488 47,488 37,334 10,154 Contracts/repairs 125,000 125,000 113,714 11,286 Building materials/supplies 82,500 82,500 58,040 24,460 Uniforms/clothing 9,800 9,800 7,725 2,075 Professional services 19,270 19,270 13,974 5,296 Special department supplies 25,500 25,500 17,375 8,125 Insurance 13,394 13,394 17,339 (3,945) Capital outlay: Machines/equipment - - 65,294 (65,294) Total streets and drains 1,136,161 1,136,161 947,826 188,335 Total current public works 1,956,269 1,956,269 1,677,373 278,896 Total public works 1,956,269 1,956,269 1,742,667 213,602 (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, 2023 Budget Variance with Original 70 Expenditures (Continued): Parks, Recreation, and Tourism Recreation Personal services: Salaries and wages $ 499,231 $ 499,231 $ 473,416 $ 25,815 Overtime pay 11,960 11,960 10,094 1,866 FICA 39,106 39,106 35,696 3,410 Employee retirement 92,321 92,321 86,569 5,752 Employee insurance 74,400 74,400 65,306 9,094 Workers' compensation 14,811 14,811 12,978 1,833 Operating expenditures: General supplies/postage 2,400 2,400 1,550 850 Dues/training/travel 6,395 6,395 3,575 2,820 Auto operating 3,325 3,325 3,620 (295) Contracts/repairs 5,500 5,500 9,083 (3,583) Uniforms/clothing 900 900 313 587 Advertising 1,300 1,300 392 908 Professional services 176,000 176,000 212,606 (36,606) Special department supplies 18,000 18,000 7,722 10,278 Basketball program 23,000 23,000 42,822 (19,822) Softball program 22,500 22,500 38,379 (15,879) Football program 38,000 38,000 54,550 (16,550) Baseball program 38,000 38,000 59,019 (21,019) Soccer program 46,000 46,000 43,891 2,109 Volleyball program 5,000 5,000 4,500 500 Concession stand supplies 134,920 134,920 68,480 66,440 Insurance 21,385 21,385 27,684 (6,299) Capital outlay: Furniture/fixtures 2,500 2,500 - 2,500 Total recreation 1,276,954 1,276,954 1,262,245 14,709 Parks Personal services: Salaries and wages 300,429 300,429 262,367 38,062 Overtime pay 15,445 15,445 16,200 (755) FICA 24,164 24,164 20,422 3,742 Employee retirement 57,046 57,046 49,996 7,050 Employee insurance 65,100 65,100 57,143 7,957 Workers' compensation 9,003 9,003 7,889 1,114 Operating expenditures: General supplies/postage 1,500 1,500 66 1,434 Dues/training/travel 1,450 1,450 506 944 Auto operating 14,425 14,425 18,941 (4,516) Utility services 20,500 20,500 29,567 (9,067) Contracts/repairs 74,800 74,800 71,572 3,228 Building materials/supplies 13,500 13,500 3,725 9,775 Uniforms/clothing 3,250 3,250 1,020 2,230 Professional services 10,000 10,000 11,140 (1,140) Special department supplies 10,000 10,000 3,738 6,262 Insurance 7,741 7,741 20,916 (13,175) Capital outlay: Machines/equipment 8,500 8,500 18,943 (10,443) Total parks 636,853 636,853 594,151 42,702 (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, 2023 Budget Variance with 71 Expenditures (Continued): Parks, Recreation, and Tourism (Continued) Community Center Personal services: Salaries and wages $60,700 $ 60,700 $ 46,169 $ 14,531 Overtime pay 3,786 3,786 4,326 (540) FICA 4,933 4,933 3,777 1,156 Employee retirement 11,646 11,646 9,002 2,644 Employee insurance 9,300 9,300 8,163 1,137 Workers' compensation 1,154 1,154 1,011 143 Operating expenditures: General supplies/postage 2,800 2,800 4,060 (1,260) Dues/training/travel 1,000 1,000 1,000 - Auto operating 700 700 575 125 Utility services 23,000 23,000 20,923 2,077 Contracts/repairs 26,200 26,200 26,968 (768) Uniforms/clothing 750 750 292 458 Advertising 2,000 2,000 - 2,000 Professional services 1,500 1,500 12,008 (10,508) Special department supplies 11,000 11,000 3,261 7,739 Insurance 2,943 2,943 3,810 (867) Total community center 163,412 163,412 145,345 18,067 RVP Activities Center Personal services: Salaries and wages 326,895 326,895 312,086 14,809 Overtime pay 6,620 6,620 4,072 2,548 FICA 25,514 25,514 23,372 2,142 Employee retirement 60,233 60,233 56,313 3,920 Employee insurance 46,500 46,500 40,816 5,684 Workers' compensation 9,263 9,263 8,117 1,146 Operating expenditures: General supplies/postage 15,500 15,500 18,663 (3,163) Dues/training/travel 1,400 1,400 100 1,300 Auto operating 2,025 2,025 172 1,853 Contracts/repairs 89,900 89,900 166,414 (76,514) Uniforms/clothing 1,400 1,400 627 773 Advertising 2,300 2,300 2,143 157 Tournaments/special events 227,000 227,000 447,699 (220,699) Special department supplies 29,500 29,500 23,144 6,356 Insurance 19,006 19,006 24,608 (5,602) Capital outlay: Furniture/fixtures 2,500 2,500 - 2,500 Total RVP activities center 865,556 865,556 1,128,346 (262,790) (Continued) CITY OF NORTH AUGUSTA, SOUTH CAROLINA GENERAL FUND SCHEDULE OF REVENUES AND EXPENDITURES COMPARED WITH BUDGET FOR THE YEAR ENDED DECEMBER 31, 2023 Budget Variance with Original Final Actual Final Budget 72 Expenditures (Continued): Parks, Recreation, and Tourism (Continued) Tourism Personal services: Salaries and wages $ 54,145 $ 54,145 $ 54,500 $ (355) FICA 4,142 4,142 3,943 199 Employee retirement 9,779 9,779 9,629 150 Employee insurance 9,300 9,300 8,163 1,137 Workers' compensation 1,564 1,564 1,370 194 Operating expenditures: General supplies/postage 8,000 8,000 13,315 (5,315) Dues/training/travel 1,000 1,000 141 859 Auto operating 13,500 13,500 13,604 (104) Data processing 1,100 1,100 - 1,100 Professional services - - 6,676 (6,676) Tourism events/festivals/supplies 205,000 205,000 205,447 (447) Insurance 11,858 11,858 20,228 (8,370) Total tourism 319,388 319,388 337,016 (17,628) Total current parks, recreation, and tourism 3,248,663 3,248,663 3,448,160 (199,497) Total capital outlay parks, recreation, and tourism 13,500 13,500 18,943 (5,443) Total parks, recreation, and tourism 3,262,163 3,262,163 3,467,103 (204,940) Debt Service: Principal retirement 770,013 770,013 764,175 5,838 Interest and fiscal charges 34,177 34,177 34,177 - Total debt service 804,190 804,190 798,352 5,838 Total expenditures $ 22,208,585 $ 22,208,585 $ 23,113,496 $ (904,911) 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, 2023 Budget Variance with 73 CITY OF NORTH AUGUSTA, SOUTH CAROLINA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS DECEMBER 31, 2023 Total Special Capital Nonmajor Revenue Projects Governmental ASSETS Funds Funds Funds Cash and cash equivalents $ 4,997,549 $ 438,713 $ 5,436,262 Intergovernmental receivables 59,198 - 59,198 Total assets $ 5,056,747 $ 438,713 $ 5,495,460 LIABILITIES AND FUND BALANCES LIABILITIES Accounts payable $ 39,636 $ 680 $ 40,316 Accrued liabilities 1,632 - 1,632 Total liabilities 41,268 680 41,948 FUND BALANCES Restricted: Public safety - fire division 129,913 - 129,913 Special projects 4,885,566 - 4,885,566 Capital projects - 127,779 127,779 Committed: Capital projects - 302,321 302,321 Assigned: Capital projects - 7,933 7,933 Total fund balances 5,015,479 438,033 5,453,512 Total liabilities and fund balances $ 5,056,747 $ 438,713 $ 5,495,460 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, 2023 Total Special Capital Nonmajor Revenue Projects Governmental Funds Funds Funds Revenues: Intergovernmental $ 347,894 $ 640,545 $ 988,439 Local hospitality and accommodations taxes 2,933,463 - 2,933,463 Interest earnings 117,619 27,499 145,118 Miscellaneous 997,635 150 997,785 Total revenues 4,396,611 668,194 5,064,805 Expenditures: Current: Public safety 103,644 296,012 399,656 Public works - 440,833 440,833 Parks, recreation & tourism 667,779 - 667,779 Capital outlay 319,868 565,090 884,958 Total expenditures 1,091,291 1,301,935 2,393,226 Excess (deficiency) of revenues over (under) expenditures 3,305,320 (633,741) 2,671,579 Other financing sources (uses): Transfers in 2,000 139,132 141,132 Transfers out (1,911,180) - (1,911,180) Total other financing sources (uses) (1,909,180) 139,132 (1,770,048) Net change in fund balances 1,396,140 (494,609) 901,531 Fund balances, beginning of year 3,619,339 932,642 4,551,981 Fund balances, end of year $ 5,015,479 $ 438,033 $ 5,453,512 75 ASSETSCash and cash equivalents$ 365,243 $ 134,836 $ 3,941,167 $ 556,3034,997,549 Intergovernmental receivable59,198- - - 59,198 Total assets$ 424,441 $ 134,836 $ 3,941,167 $ 556,303 5,056,747 LIABILITIES AND FUND BALANCESLIABILITIESAccounts payable$- $4,923 $ 19,813 $ 14,90039,636 Accrued liabilities- - 1,632 - 1,632 Total liabilities- 4,923 21,445 14,900 41,268 FUND BALANCES Restricted: Public safety - fire division- 129,913 - - 129,913 Special projects424,441 - 3,919,722 541,403 4,885,566 Total fund balances424,441 129,913 3,919,722 541,403 5,015,479 Total liabilities and fund balances$ 424,441 $ 134,836 $ 3,941,167 $ 556,303 5,056,747 CITY OF NORTH AUGUSTA, SOUTH CAROLINACOMBINING BALANCE SHEET NONMAJOR SPECIAL REVENUE FUNDS DECEMBER 31, 2023NonmajorSpecial Revenue Funds AccommodationsRiverfront/Central CoreTotalSpecial RevenueFundsTaxFundFireman'sFundRedevelopmentFundSavannah RiverSettlementFund76 NonmajorCapital ProjectsFundsASSETSCash and cash equivalents$- $- $ 27,779 $ 312,659 $ 98,275 $ 438,713 Total assets$- $- $ 27,779 $ 312,659 $ 98,275 $ 438,713 LIABILITIES AND FUND BALANCESLIABILITIESAccounts payable$- $- $- $680 $- $680 Total liabilities- - - 680 - 680 FUND BALANCES Restricted: Capital projects- - 27,779 100,000 - 127,779 Committed: Capital projects- - - 211,979 90,342 302,321 Assigned: Capital projects- - - - 7,933 7,933 Total fund balances- - 27,779 311,979 98,275 438,033 Total liabilities and fund balances$- $- $ 27,779 $ 312,659 $ 98,275 $ 438,713 TotalCITY OF NORTH AUGUSTA, SOUTH CAROLINACOMBINING BALANCE SHEET NONMAJOR CAPITAL PROJECTS FUNDS DECEMBER 31, 2023Capital Projects FundsFundImprovementsFundSales TaxStreet Transportation ImprovementSales Tax IIIFundSales Tax IIFundFund77 Fireman'sFundRevenues:Local hospitality and accommodations taxes $ - $ - $ 2,933,463 $- $ 2,933,463 Intergovernmental259,36888,526- - 347,894 Interest earnings9,9761,17691,09815,369117,619 Miscellaneous- - 2,985994,650997,635 Total revenues269,344 89,702 3,027,546 1,010,019 4,396,611 Expenditures:Current:Public safety- 103,644 - - 103,644 Parks, recreation and tourism 217,158 - 450,621 - 667,779 Capital outlay- - 319,868- 319,868 Total expenditures217,158 103,644 770,489 - 1,091,291 Excess (deficiency) of revenues over (under) expenditures52,186 (13,942) 2,257,057 1,010,019 3,305,320 Other financing sources (uses) Transfers in- - - 2,0002,000 Transfers out- - (1,440,564) (470,616) (1,911,180) Total other financing uses, net- - (1,440,564) (468,616) (1,909,180) Net change in fund balances52,186 (13,942) 816,493 541,403 1,396,140 Fund balances, beginning of year372,255143,8553,103,229- 3,619,339 Fund balances, end of year$ 424,441 $ 129,913 $ 3,919,722 $ 541,403 $ 5,015,479 CITY OF NORTH AUGUSTA, SOUTH CAROLINACOMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCESFOR THE YEAR ENDED DECEMBER 31, 2023Special Revenue Funds NONMAJOR SPECIAL REVENUE FUNDS TotalTaxFundAccommodationsSpecial RevenueNonmajorRiverfront/Savannah RiverSettlementFundRedevelopmentFundCentral CoreFunds78 NonmajorCapital ProjectsFundsRevenues:Intergovernmental$- $- $- $ 640,545 $- $ 640,545 Interest earnings83311,6013,02010,7181,32727,499 Miscellaneous- - - 150- 150 Total revenues833 11,601 3,020 651,413 1,327 668,194 Expenditures:Current:Public safety- 296,012- - - 296,012 Public works- - - 440,833- 440,833 Capital outlay71,163- 47,132 446,795- 565,090 Total expenditures71,163 296,012 47,132 887,628 - 1,301,935 Excess (deficiency) of revenues over (under) expenditures(70,330) (284,411) (44,112) (236,215) 1,327 (633,741) Other financing sources Transfers in- - 139,132 - - 139,132 Total other financing sources - - 139,132 - - 139,132 Net change in fund balances(70,330) (284,411) 95,020 (236,215) 1,327 (494,609) Fund balances (deficit), beginning of year70,330284,411(67,241) 548,19496,948932,642 Fund balances, end of year$- $- $ 27,779 $ 311,979 $ 98,275 $ 438,033 TotalCITY OF NORTH AUGUSTA, SOUTH CAROLINACOMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCESNONMAJOR CAPITAL PROJECTS FUNDS FOR THE YEAR ENDED DECEMBER 31, 2023Capital Projects FundsTransportation 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 $ 3,445,839 $ 3,602,203 $ 156,364 Sewer sales 7,119,647 7,195,267 75,620 Water tap fees 94,166 164,184 70,018 Sewer tap fees 189,421 225,582 36,161 Fire protection fees 14,584 15,275 691 Other 551,821 568,723 16,902 Total operating revenues 11,415,478 11,771,234 355,756 OPERATING EXPENSES Utilities finance 740,665 731,756 8,909 Utilities administration 579,254 529,645 49,609 Water operations and maintenance 1,074,969 906,706 168,263 Water production and treatment 1,833,135 1,816,689 16,446 Wastewater operations and maintenance 5,389,406 5,013,508 375,898 Depreciation and amortization - 1,670,318 (1,670,318) Total operating expenses 9,617,429 10,668,622 (1,051,193) Operating income 1,798,049 1,102,612 (695,437) NONOPERATING REVENUE (EXPENSE) Interest income 30,000 586,728 556,728 Gain on sale of capital assets - 11,900 11,900 Interest expense - (288,165) (288,165) Intergovernmental - 23,515 23,515 Total nonoperating revenues (expenses), net 30,000 333,978 303,978 Income before capital contributions and transfers 1,828,049 1,436,590 (391,459) CAPITAL CONTRIBUTIONS - 799,614 799,614 TRANSFERS Transfers in 22,537 121,088 98,551 Transfers out (2,223,752) (859,159) 1,364,593 Total transfers (2,201,215) (738,071) 1,463,144 Change in net position (373,166) 1,498,133 1,871,299 Total net position, beginning of year 66,176,871 66,176,871 - Total net position, end of year $ 65,803,705 $ 67,675,004 $ 1,871,299 WATER AND WASTEWATER SYSTEM FUND SCHEDULE OF REVENUES AND EXPENSES BUDGET AND ACTUAL - GAAP BASIS FOR THE YEAR ENDED DECEMBER 31, 2023 Variance with Budget 80 CITY OF NORTH AUGUSTA, SOUTH CAROLINA Budget Actual OPERATING EXPENSES Utilities Finance Personal services: Salaries and wages $ 247,520 $ 233,405 $ 14,115 FICA 18,935 17,047 1,888 Employee retirement 44,702 31,114 13,588 Employee insurance 46,500 40,816 5,684 Workers' compensation 6,245 5,714 531 Other operating expenses: General supplies/postage 115,000 119,010 (4,010) Dues/training/travel 3,200 4,124 (924) Data processing 171,000 187,970 (16,970) Contracts and repairs 25,700 25,402 298 Professional services 14,325 14,962 (637) Special departmental supplies 500 432 68 Insurance 16,038 20,762 (4,724) Bad debts 31,000 30,998 2 Total utilities finance 740,665 731,756 8,909 Utilities Administration: Personal services: Salaries and wages 334,184 307,606 26,578 Overtime pay 7,686 7,288 398 FICA 26,153 23,041 3,112 Employee retirement 61,742 44,308 17,434 Employee insurance 60,450 53,061 7,389 Workers' compensation 9,852 8,734 1,118 Other operating expenses: General supplies 2,005 2,088 (83) Dues/training 3,450 2,675 775 Auto operating 15,911 18,826 (2,915) Utility services 9,720 11,757 (2,037) Contracts and repairs 18,650 20,247 (1,597) Building materials 350 247 103 Uniforms and clothing 3,667 3,591 76 Professional services 4,000 10,183 (6,183) Special departmental supplies 225 284 (59) Insurance 4,111 15,709 (11,598) Lease purchase 17,098 - 17,098 Total utilities administration 579,254 529,645 49,609 Water Operations and Maintenance: Personal services: Salaries and wages 452,240 405,016 47,224 Overtime pay 12,074 19,082 (7,008) FICA 35,520 30,600 4,920 Employee retirement 83,855 55,590 28,265 Employee insurance 83,700 73,469 10,231 Workers' compensation 12,491 10,945 1,546 Other operating expenses: Dues/training 2,080 1,210 870 Auto operating 40,916 48,109 (7,193) Contracts and repairs 19,600 31,871 (12,271) Building materials 10,875 12,454 (1,579) Uniforms and clothing 6,785 5,073 1,712 Special departmental supplies 263,975 197,735 66,240 Insurance 6,733 14,706 (7,973) Lease purchase 23,803 - 23,803 Buildings/fixed equipment 10,000 - 10,000 Water line replacements - 846 (846) Machines/equipment 10,322 - 10,322 Total water operations and maintenance 1,074,969 906,706 168,263 (Continued) BUDGET AND ACTUAL - GAAP BASIS FOR THE YEAR ENDED DECEMBER 31, 2023 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 $ 482,235 $ 500,770 $ (18,535) Overtime pay 20,119 31,029 (10,910) FICA 38,430 38,066 364 Employee retirement 90,725 71,923 18,802 Employee insurance 74,400 65,306 9,094 Workers' compensation 14,454 12,666 1,788 Other operating expenses: General supplies 2,880 899 1,981 Dues/training/travel 7,450 5,877 1,573 Auto operating 6,291 7,124 (833) Utility services 336,420 476,472 (140,052) Contracts and repairs 174,515 230,951 (56,436) Building materials 700 687 13 Uniforms and clothing 5,600 3,770 1,830 Professional services 46,819 42,409 4,410 Special departmental supplies 244,222 269,078 (24,856) ACPSA treatment charges 3,000 1,179 1,821 Insurance 45,177 58,483 (13,306) Lease purchase 52,918 - 52,918 Machines/equipment 186,780 - 186,780 Total water production and treatment 1,833,135 1,816,689 16,446 Wastewater Operations and Maintenance: Personal services: Salaries and wages 536,904 504,856 32,048 Overtime pay 28,088 19,296 8,792 FICA 43,222 38,237 4,985 Employee retirement 102,038 68,826 33,212 Employee insurance 102,300 89,796 12,504 Workers' compensation 15,107 13,273 1,834 Other operating expenses: Dues/training/travel 700 648 52 Auto operating 34,654 39,441 (4,787) Utility services 67,295 94,643 (27,348) Contracts and repairs 139,479 137,045 2,434 Building materials 11,350 14,797 (3,447) Uniforms and clothing 7,240 6,353 887 Professional services - 3,346 (3,346) Special departmental supplies 17,400 13,664 3,736 ACPSA treatment charges 3,888,000 3,944,988 (56,988) Lease purchase 158,853 - 158,853 Insurance 19,276 24,299 (5,023) Clay pump station improvements 10,500 - 10,500 Motecello liftstation improvements 207,000 - 207,000 Total wastewater operations and maintenance 5,389,406 5,013,508 375,898 Depreciation and amortization - 1,670,318 (1,670,318) Total operating expenses $ 9,617,429 $ 10,668,622 $ (1,051,193) Variance with Budget BUDGET AND ACTUAL - GAAP BASIS FOR THE YEAR ENDED DECEMBER 31, 2023 WATER AND WASTEWATER SYSTEM FUND SCHEDULE OF OPERATING EXPENSES 82 CITY OF NORTH AUGUSTA, SOUTH CAROLINA Budget Actual OPERATING REVENUES Stormwater utility fees $ 861,500 $ 882,998 $ 21,498 Other 12,471 28,369 15,898 Total operating revenues 873,971 911,367 37,396 OPERATING EXPENSES Stormwater operations 852,763 610,037 242,726 Depreciation - 381,538 (381,538) Total operating expenses 852,763 991,575 (138,812) Operating income (loss)21,208 (80,208) (101,416) NONOPERATING REVENUE (EXPENSES) Interest income 3,000 29,595 26,595 Interest expense - (1,047) (1,047) Intergovernmental - 1,277,502 1,277,502 Total nonoperating revenues, net 3,000 1,306,050 1,303,050 Income before capital contributions and transfers 24,208 1,225,842 1,201,634 CAPITAL CONTRIBUTIONS - 831,802 831,802 TRANSFERS Transfers in 2,132 1,002,132 1,000,000 Transfers out (26,340) (26,340) - Total transfers (24,208) 975,792 1,000,000 Change in net position - 3,033,436 3,033,436 Total net position, beginning of year 7,564,919 7,564,919 - Total net position, end of year $ 7,564,919 $ 10,598,355 $ 3,033,436 Variance with Budget STORMWATER UTILITY FUND SCHEDULE OF REVENUES AND EXPENSES BUDGET AND ACTUAL - GAAP BASIS FOR THE YEAR ENDED DECEMBER 31, 2023 83 CITY OF NORTH AUGUSTA, SOUTH CAROLINA Budget Actual OPERATING EXPENSES Personal services: Salaries and wages $ 385,155 $ 378,377 $ 6,778 Overtime pay 2,127 952 1,175 FICA 29,627 27,512 2,115 Employee retirement 69,943 47,229 22,714 Employee insurance 58,125 51,020 7,105 Workers' compensation 11,978 12,797 (819) Other operating expenses: General supplies 800 391 409 Dues/training 6,425 5,932 493 Auto operating 13,625 10,019 3,606 Data processing 18,185 19,783 (1,598) Contracts and repairs 7,400 5,838 1,562 Uniforms and clothing 3,400 2,417 983 Advertising 5,300 2,888 2,412 Professional services 34,976 25,928 9,048 Special departmental supplies 8,700 9,249 (549) Insurance 7,497 9,705 (2,208) Leases 44,000 - 44,000 Drainage projects 138,300 - 138,300 Machines and equipment 7,200 - 7,200 Total stormwater operations 852,763 610,037 242,726 Depreciation - 381,538 (381,538) Total operating expenses $ 852,763 $ 991,575 $ (138,812) Budget Variance with STORMWATER UTILITY FUND SCHEDULE OF OPERATING EXPENSES BUDGET AND ACTUAL - GAAP BASIS FOR THE YEAR ENDED DECEMBER 31, 2023 84 CITY OF NORTH AUGUSTA, SOUTH CAROLINA Budget Actual OPERATING REVENUES Sanitation service fees $ 4,099,596 $ 4,183,826 $ 84,230 Recycling fees 118,458 186,966 68,508 Sale of recyclables 109,233 98,865 (10,368) Other 79,794 378,127 298,333 Total operating revenues 4,407,081 4,847,784 440,703 OPERATING EXPENSES Sanitation operations 3,110,755 3,036,176 74,579 Material recovery facility 886,220 925,804 (39,584) Depreciation - 515,562 (515,562) Total operating expenses 3,996,975 4,477,542 (480,567) Operating income 410,106 370,242 (39,864) NONOPERATING REVENUE (EXPENSES) Interest income 11,000 136,087 125,087 Gain on sale of property - 41,777 41,777 Interest expense - (15,572) (15,572) Total nonoperating revenues, net 11,000 162,292 151,292 Income before transfers 421,106 532,534 111,428 CAPITAL CONTRIBUTIONS - 36,064 36,064 TRANSFERS Transfers in 8,208 478,823 470,615 Transfers out (429,314) (429,314) - Total transfers (421,106) 49,509 470,615 Change in net position - 618,107 618,107 Total net position, beginning of year 3,234,516 3,234,516 - Total net position, end of year $ 3,234,516 $ 3,852,623 $ 618,107 Variance with Budget SCHEDULE OF OPERATING REVENUES AND EXPENSES SANITATION SERVICES FUND BUDGET AND ACTUAL - GAAP BASIS FOR THE YEAR ENDED DECEMBER 31, 2023 85 CITY OF NORTH AUGUSTA, SOUTH CAROLINA Budget Actual OPERATING EXPENSES Sanitation Operations Personal services: Salaries and wages $ 1,240,597 $ 1,114,276 $ 126,321 Overtime pay 17,054 35,030 (17,976) FICA 96,210 84,381 11,829 Employee retirement 227,132 155,198 71,934 Employee insurance 246,450 216,326 30,124 Workers' compensation 37,166 33,031 4,135 Other operating expenses: General supplies 1,300 2,497 (1,197) Dues/training 800 450 350 Auto operating 405,728 769,051 (363,323) Utility services 22,500 33,952 (11,452) Data processing 26,277 28,576 (2,299) Contracts and repairs 10,248 12,696 (2,448) Uniforms and clothing 17,450 12,094 5,356 Professional services 6,712 138,756 (132,044) Special departmental supplies 297,350 303,291 (5,941) Insurance 61,040 96,571 (35,531) Leases 396,741 - 396,741 Total sanitation operations 3,110,755 3,036,176 74,579 Material Recovery Facility Personal services: Salaries and wages 304,381 287,070 17,311 Overtime pay 4,212 2,460 1,752 FICA 23,607 20,880 2,727 Employee retirement 55,732 37,978 17,754 Employee insurance 51,150 44,898 6,252 Workers' compensation 12,937 13,242 (305) Other operating expenses: General supplies 375 372 3 Dues/training 555 - 555 Auto operating 86,871 85,690 1,181 Utility services 10,300 8,586 1,714 Contracts and repairs 29,300 102,718 (73,418) Building material 300 1,027 (727) Recycling expenses 1,000 - 1,000 Uniforms and clothing 5,300 2,812 2,488 Professional services 69,736 90,676 (20,940) Special departmental supplies 14,447 142,600 (128,153) Insurance 61,911 84,795 (22,884) Leases 154,106 - 154,106 Total material recovery facility 886,220 925,804 (39,584) Depreciation - 515,562 (515,562) Total operating expenses $ 3,996,975 $ 4,477,542 $ (480,567) Budget Variance with FOR THE YEAR ENDED DECEMBER 31, 2023 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, 2023 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 $ 902,740 $ 902,740 Court fines and assessments remitted to State Treasurer N/A N/A 516,745 516,745 Total Court Fines and Assessments retained N/A N/A $ 385,995 $ 385,995 Surcharges and Assessments retained for victim services: Surcharges collected and retained N/A N/A $ 2,902 $ 2,902 Assessments retained N/A N/A 43,333 43,333 Total Surcharges and Assessments retained for victim services N/A N/A $ 46,235 $ 46,235 FOR THE DEPARTMENT OF CRIME VICTIM COMPENSATION (DCVC) Municipal County Total $ 126,972 N/A $ 126,972 - N/A - 43,333 N/A 43,333 2,902 N/A 2,902 - N/A - - N/A - - N/A - - N/A - - N/A - - N/A - $ 173,207 N/A $ 173,207 (2) Town of (3) City of Total Funds Allocated to Victim Service Fund + Beginning Balance (A) (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: 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, 2023 Municipal County Total $ 8,031 N/A $ 8,031 4,395 N/A 4,395 - N/A - - N/A - 15,500 N/A 15,500 - N/A - 15,500 N/A 15,500 - N/A - 43,426 N/A 43,426 129,781 N/A 129,781 - N/A - $ 129,781 N/A $ 129,781 (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) (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 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. 2014 2015 2016 2017 2018 Governmental activities Net investment in capital assets 57,779,457$ 59,649,524$ 60,261,553$ 46,115,747$ 65,640,358$ Restricted 7,536,710 6,964,338 7,616,189 23,744,254 6,574,221 Unrestricted 4,267,933 (6,848,500) (5,705,943) (5,641,833) (7,354,106) Total governmental activities net position 69,584,100$ 59,765,362$ 62,171,799$ 64,218,168$ 64,860,473$ Business-type activities Net investment in capital assets 51,802,542$ 53,610,839$ 53,203,765$ 55,927,179$ 58,580,045$ Restricted 9,883,717 10,248,230 11,374,284 9,618,737 7,977,008 Unrestricted 6,767,765 (1,175,007) (387,763) 492,016 1,215,467 Total business-type activities net position 68,454,024$ 62,684,062$ 64,190,286$ 66,037,932$ 67,772,520$ Primary Government Net investment in capital assets 109,581,999$ 113,260,363$ 113,465,318$ 102,042,926$ 124,220,403$ Restricted 17,420,427 17,212,568 18,990,473 33,362,991 14,551,229 Unrestricted 11,035,698 (8,023,507) (6,093,706) (5,149,817) (6,138,639) Total primary government net position 138,038,124$ 122,449,424$ 126,362,085$ 130,256,100$ 132,632,993$ 2019 2020 2021 2022 2023 Governmental activities Net investment in capital assets 64,540,113$ 64,277,060$ 54,204,071$ 56,753,022$ 69,956,542$ Restricted 8,729,598 7,848,687 19,786,412 19,633,892 11,272,709 Unrestricted (9,984,502) (9,345,838) (7,117,195) (5,303,954) (2,835,312) Total governmental activities net position 63,285,209$ 62,779,909$ 66,873,288$ 71,082,960$ 78,393,939$ Business-type activities Net investment in capital assets 60,703,383$ 61,930,753$ 62,504,303$ 63,792,267$ 68,970,736$ Restricted 8,433,456 8,358,324 8,481,549 8,437,860 9,143,935 Unrestricted 1,431,160 1,855,707 3,230,474 5,271,343 4,541,852 Total business-type activities net position 70,567,999$ 72,144,784$ 74,216,326$ 77,501,470$ 82,656,523$ Primary Government Net investment in capital assets 125,243,496$ 126,207,813$ 116,708,374$ 120,545,289$ 138,927,278$ Restricted 17,163,054 16,207,011 28,267,961 28,071,752 20,416,644 Unrestricted (8,553,342) (7,490,131) (3,886,721) (32,611) 1,706,540 Total primary government net position 133,853,208$ 134,924,693$ 141,089,614$ 148,584,430$ 161,050,462$ 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 $18,624,474 was required to reflect implementation. City of North Augusta, South Carolina Net Position by Component Last Ten Fiscal Years (accrual basis of accounting) Year Ending December 31 Year Ending December 31 89 2014 2015 2016 2017 2018 Expenses Governmental activities: General government 4,181,576$ 4,573,665$ 4,519,094$ 7,474,923$ 8,855,053$ Public safety 7,232,466 7,517,589 8,473,548 8,736,202 9,253,259 Public works 2,348,897 2,051,542 580,327 2,695,126 2,736,631 Parks, recreation, and tourism 4,501,259 4,723,035 5,061,480 4,913,582 3,785,041 Debt service - interest and fees 163,147 168,583 155,047 338,132 1,568 Total governmental activities expenses 18,427,345$ 19,034,414$ 18,789,496$ 24,157,965$ 24,631,552$ Business-type activities: Water and wastewater 7,420,051$ 8,081,456$ 7,745,232$ 8,359,555$ 8,896,535$ Sanitation 3,958,515 4,316,548 4,594,016 4,536,142 4,624,936 Stormwater utility 507,555 494,179 541,495 638,634 661,987 Savannah Bluff Lock and Dam 24,000 24,000 24,000 24,000 23,999 Total business-type activities expenses 11,910,121$ 12,916,183$ 12,904,743$ 13,558,331$ 14,207,457$ Total primary government expenses 30,337,466$ 31,950,597$ 31,694,239$ 37,716,296$ 38,839,009$ Program Revenues Governmental activities: Charges for services: General government 5,272,149$ 5,621,613$ 5,885,657$ 6,229,497$ 6,361,953$ Public safety 1,109,022 1,195,544 1,060,102 1,041,202 892,138 Public Works 62,664 65,907 78,018 158,147 167,961 Parks, recreation, and tourism 1,090,469 1,162,485 1,260,024 1,148,108 1,829,789 Operating grants and contributions 1,433,764 872,652 791,316 1,083,944 1,377,317 Capital grants and contributions 468,934 - - 207,768 - Total governmental activities program revenues 9,437,002$ 8,918,201$ 9,075,117$ 9,868,666$ 10,629,158$ Business-type activities: Charges for services: Water and wastewater 8,800,125$ 8,664,457$ 9,155,898$ 9,459,054$ 9,746,927$ Sanitation 4,163,934 4,168,309 4,246,959 4,472,281 4,355,688 Stormwater utility 584,566 746,814 759,131 770,135 782,958 Operating grants and contributions 264,747 2,449 - 10,161 80,636 Capital grants and contributions 618,036 396,837 124,408 103,591 23,514 Total business-type activities program revenues 14,431,408$ 13,978,866$ 14,286,396$ 14,815,222$ 14,989,723$ Total primary government program revenues 23,868,410$ 22,897,067$ 23,361,513$ 24,683,888$ 25,618,881$ Net (expense) / revenue Governmental activities (8,990,343)$ (10,116,213)$ (9,714,379)$ (14,289,299)$ (14,002,394)$ Business-type activities 2,521,287 1,062,683 1,381,653 1,256,891 782,266 Total primary government net expense (6,469,056)$ (9,053,530)$ (8,332,726)$ (13,032,408)$ (13,220,128)$ General Revenues and Other Changes in Net Position Governmental activities: Ad valorem property taxes 6,993,684$ 6,874,139$ 7,162,650$ 8,146,680$ 8,143,925$ Capital projects sales taxes 2,733,613 2,828,301 2,891,291 3,109,712 3,179,463 Local hospitality and accommodations taxes 661,531 713,903 764,056 790,749 1,718,195 Interest on investments 69,440 89,791 192,906 423,369 400,007 Gain(loss) on disposal of capital assets - (3,311) - - 9,441 Miscellaneous 696,936 886,062 568,970 3,659,328 1,024,414 Transfers 378,848 514,893 540,943 205,830 169,254 Total governmental activities 11,534,052$ 11,903,778$ 12,120,816$ 16,335,668$ 14,644,699$ Business-type activities: Interest on investments 50,735$ 69,410$ 120,990$ 145,025$ 281,451$ Gain(loss) on disposal of capital assets - 46,107 (12,606) 78,747 55,180 Miscellaneous 644,361 584,902 557,130 572,813 784,945 Transfers (378,848) (514,893) (540,943) (205,830) (169,254) Total business-type activities 316,248$ 185,526$ 124,571$ 590,755$ 952,322$ Total primary government 11,850,300$ 12,089,304$ 12,245,387$ 16,926,423$ 15,597,021$ Change in Net Position Governmental activities 2,543,709$ 1,787,565$ 2,406,437$ 2,046,369$ 642,305$ Business-type activities 2,837,535 1,248,209 1,506,224 1,847,646 1,734,588 Total primary government 5,381,244$ 3,035,774$ 3,912,661$ 3,894,015$ 2,376,893$ (continued) (accrual basis of accounting) Year Ending December 31 City of North Augusta, South Carolina Changes in Net Position Last Ten Fiscal Years 90 2019 2020 2021 2022 2023 Expenses Governmental activities: General government 11,607,797$ 7,870,452$ 8,020,594$ 8,978,242$ 9,807,883$ Public safety 9,079,791 9,539,596 8,713,621 9,668,579 10,692,057 Public works 2,936,592 2,924,751 2,952,922 3,125,270 3,574,540 Parks, recreation, and tourism 4,212,339 3,371,009 4,197,184 4,454,887 5,026,860 Debt service - interest and fees 276,699 3,447,465 3,347,376 3,338,117 3,281,470 Loss on debt defeasance - - - - - Total governmental activities expenses 28,113,218$ 27,153,273$ 27,231,697$ 29,565,095$ 32,382,810$ Business-type activities: Water and wastewater 10,077,290$ 10,410,462$ 10,164,461$ 10,195,996$ 10,956,787$ Sanitation 4,733,146 4,626,296 4,479,166 4,063,126 4,493,114 Stormwater utility 789,312 840,358 883,357 955,356 992,622 Savannah Bluff Lock and Dam utility 24,000 192,673 133,970 26,000 22,000 Total business-type activities expenses 15,623,748$ 16,069,789$ 15,660,954$ 15,240,478$ 16,464,523$ Total primary government expenses 43,736,966$ 43,223,062$ 42,892,651$ 44,805,573$ 48,847,333$ Program Revenues Governmental activities: Charges for services: General government 6,256,452$ 6,420,926$ 6,868,596$ 7,154,304$ 7,682,907$ Public safety 1,044,181 911,851 895,682 869,174 942,166 Public Works 108,726 85,435 93,392 99,378 107,202 Parks, recreation, and tourism 2,096,008 1,091,763 2,158,381 2,127,533 2,159,311 Operating grants and contributions 1,265,522 1,287,442 960,878 2,316,342 5,033,679 Capital grants and contributions 759,852 1,788,037 2,199,191 639,030 - Total governmental activities program revenues 11,530,741$ 11,585,454$ 13,176,120$ 13,205,761$ 15,925,265$ Business-type activities: Charges for services: Water and wastewater 10,151,786$ 10,666,159$ 11,159,227$ 10,844,304$ 11,202,511$ Sanitation 4,487,564 4,862,277 4,791,306 4,003,815 4,469,657 Stormwater utility 804,213 821,127 837,701 860,588 882,998 Operating grants and contributions 23,516 - - - 1,301,017 Capital grants and contributions 616,830 1,325,388 1,332,381 1,166,873 1,631,416 Total business-type activities program revenues 16,083,909$ 17,674,951$ 18,120,615$ 16,875,580$ 19,487,599$ Total primary government program revenues 27,614,650$ 29,260,405$ 31,296,735$ 30,081,341$ 35,412,864$ Net (expense) / revenue Governmental activities (15,567,819)$ (14,055,577)$ (16,359,334)$ (16,359,334)$ (16,457,545)$ Business-type activities 1,605,162 2,459,661 1,635,102 1,635,102 6,023,076 Total primary government net expense (13,962,657)$ (11,595,916)$ (14,724,232)$ (14,724,232)$ (10,434,469)$ General Revenues and Other Changes in Net Position Governmental activities: Ad valorem property taxes 8,456,230$ 10,632,768$ 11,382,532$ 13,122,687$ 13,789,487$ Capital projects sales taxes 1,443,301 176,864 1,770,110 1,770,261 3,423,388 Local hospitality and accommodations taxes 2,017,221 1,830,571 2,385,218 2,664,997 2,933,463 Interest on investments 330,669 168,087 62,950 508,037 1,708,263 Gain(loss) on disposal of capital assets 31,203 - - - - Miscellaneous 1,005,944 1,095,995 1,329,329 1,472,620 2,237,217 Transfers 748,347 1,158,234 1,218,817 1,030,404 (323,294) Total governmental activities 14,032,915$ 15,062,519$ 18,148,956$ 20,569,006$ 23,768,524$ Business-type activities: Interest on investments 327,680$ 127,876$ 35,498$ 297,154$ 779,787$ Gain(loss) on disposal of capital assets 465 56,065 95,281 7,860 53,677 Miscellaneous 631,468 945,916 699,919 2,375,432 975,219 Transfers (748,347) (1,158,234) (1,218,817) (1,030,404) 323,294 Total business-type activities 211,266$ (28,377)$ (388,119)$ 1,650,042$ 2,131,977$ Total primary government 14,244,181$ 15,034,142$ 17,760,837$ 22,219,048$ 25,900,501$ Change in Net Position Governmental activities (2,549,562)$ (505,300)$ 4,093,379$ 4,209,672$ 7,310,979$ Business-type activities 671,427 1,576,785 2,071,542 3,285,144 5,155,053 Total primary government (1,878,135)$ 1,071,485$ 6,164,921$ 7,494,816$ 12,466,032$ (accrual basis of accounting) Year Ending December 31 City of North Augusta, South Carolina Changes in Net Position Last Ten Fiscal Years 91 2014 2015 2016 2017 2018 General Fund Nonspendable 1,774$ -$ -$ -$ -$ Restricted 60,140 88,746 103,644 107,443 111,049 Committed 1,073,650 796,106 1,484,194 1,121,426 937,499 Unassigned - 2,375,000 2,475,000 2,625,000 2,825,000 Total General Fund 1,135,564$ 3,259,852$ 4,062,838$ 3,853,869$ 3,873,548$ All Other Governmental Funds Reserved 6,746,666$ -$ -$ -$ Restricted 2,114,554 5,790,157 7,512,545 23,636,811 10,531,546 Committed 2,489,051 2,184,346 2,950,803 3,731,713 2,669,258 Assigned (188,988) 1,261,269 428,854 367,043 344,403 Unassigned - (69,258) - - - Total all other governmental funds 11,161,283$ 9,166,514$ 10,892,202$ 27,735,567$ 13,545,207$ 2019 2020 2021 2022 2023 General Fund Nonspendable -$ -$ -$ -$ -$ Restricted 115,225 119,094 123,331 126,972 129,781 Committed 433,393 689,671 2,834,351 2,174,623 1,906,876 Unassigned 2,875,000 3,000,000 3,125,000 3,350,000 3,700,000 Total General Fund 3,423,618$ 3,808,765$ 6,082,682$ 5,651,595$ 5,736,657$ All Other Governmental Funds Reserved -$ -$ -$ -$ -$ Restricted 9,423,502 17,733,705 19,663,081 19,506,920 11,142,928 Committed 2,737,813 2,980,435 3,398,961 5,364,974 7,143,941 Assigned 34,138 5,837 6,155 6,606 7,933 Unassigned - - - (67,241) (259,577) Total all other governmental funds 12,195,453$ 20,719,977$ 23,068,197$ 24,811,259$ 18,035,225$ 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 2014 2015 2016 2017 2018 Revenues Ad valorem taxes 6,993,526$ 6,871,821$ 7,163,429$ 7,446,013$ 8,018,222$ Sales taxes 2,733,613 2,828,301 2,891,291 3,109,712 3,179,463 Local hospitality and accommodations taxes 661,531 713,903 764,056 790,749 1,718,195 Licenses and permits 5,272,149 5,621,613 5,885,657 6,229,497 6,361,953 Fines and forfeitures 1,044,648 1,138,891 996,799 978,626 834,200 Charges for services 1,154,843 1,285,045 1,401,345 1,291,321 1,974,016 Intergovernmental 1,187,485 872,652 791,316 4,179,592 1,899,080 Miscellaneous/interest earnings 747,304 977,123 781,035 1,000,276 1,068,804 Contributions 368,500 - - - - Total Revenues 20,163,599$ 20,309,349$ 20,674,928$ 25,025,786$ 25,053,933$ Expenditures General government 3,704,832$ 4,028,393$ 3,712,733$ 3,406,445$ 4,759,360$ Public safety 6,630,196 7,833,279 7,990,705 7,921,809 8,379,644 Public works 1,344,015 1,487,619 1,394,286 1,515,323 1,594,271 Parks, recreation and tourism 3,391,470 3,647,665 4,022,934 4,085,589 3,043,122 Capital outlay 6,269,988 13,260,678 1,790,360 45,762,352 18,736,157 Debt service: Lease payments 747,764 897,952 929,907 3,991,122 619,864 Interest and fiscal charges 179,035 164,947 155,047 1,712,670 3,217,755 Principal Retirements - - - 12,573,657 (b)- Bond Issuance Costs - - - 1,495,554 - Total Expenditures 22,267,300$ 31,320,533$ 19,995,972$ 82,464,521$ 40,350,173$ Excess (deficiency) of revenues over (under) expenditures (2,103,701)$ (11,011,184)$ 678,956$ (57,438,735)$ (15,296,240)$ Other financing sources (uses)Sale of capital assets 26,191$ -$ -$ -$ Issuance of financed purchase obligations 312,249 887,594 880,655 473,983 432,308 Issuance of bonds - 9,738,217 428,120 71,882,320 (a)- Insurance proceeds - - - 178,260 - Transfers in 3,253,841 23,350,453 1,397,258 10,699,613 4,538,136 Transfers out (2,874,993) (22,835,560) (856,315) (9,161,045) (3,844,885) Total other financing sources (uses)717,288$ 11,140,704$ 1,849,718$ 74,073,131$ 1,125,559$ Net change in fund balance (1,386,413)$ 129,520$ 2,528,674$ 16,634,396$ (14,170,681)$ Debt service as a percentage of noncapital expenditures 5.77%6.42%7.03%54.73%(b)18.18% 2019 2020 2021 2022 2023 Revenues Ad valorem taxes 8,404,331$ 9,655,624$ 12,220,170$ 12,932,274$ 13,682,634$ Sales taxes 2,235,581 176,864 1,770,110 1,770,261 3,423,388 Local hospitality and accommodations taxes 2,017,221 1,830,571 2,385,218 2,664,997 2,933,463 Licenses and permits 6,256,452 6,420,926 6,868,596 7,154,304 7,682,907 Fines and forfeitures 1,006,060 872,727 854,434 828,347 901,098 Charges for services 2,226,219 1,216,322 2,293,021 2,267,738 2,307,581 Intergovernmental 1,569,665 1,452,465 1,168,208 2,729,348 5,446,755 Miscellaneous/interest earnings 1,111,636 1,157,925 1,237,945 1,813,821 3,729,362 Contributions - - - - - Total Revenues 24,827,165$ 22,783,424$ 28,797,702$ 32,161,090$ 40,107,188$ Expenditures General government 5,751,630$ 5,503,855$ 5,849,145$ 6,864,168$ 7,471,111$ Public safety 8,932,323 8,058,484 7,986,178 8,931,947 9,848,498 Public works 1,728,518 1,520,495 1,553,477 1,696,583 2,118,206 Parks, recreation and tourism 3,278,290 2,500,187 3,353,253 3,641,616 4,208,884 Capital outlay 4,909,427 3,747,567 3,287,647 4,988,864 17,034,414 Debt service: Lease payments 731,955 711,865 702,138 - - Interest and fiscal charges 3,217,751 3,273,533 3,325,369 3,348,840 3,287,466 Principal Retirements - 650,000 739,968 3,184,079 3,458,032 Bond Issuance Costs - 88,947 - - - Total Expenditures 28,549,894$ 26,054,933$ 26,797,175$ 32,656,097$ 47,426,611$ Excess (deficiency) of revenues over (under) expenditures (3,271,509)$ 2,000,527$ (495,007)$ (495,007)$ (7,319,423)$ Other financing sources (uses) Sale of capital assets -$ -$ -$ -$ -$ Issuance of financed purchase obligations 838,111 772,946 1,405,126 776,578 915,681 Issuance of bonds - 10,250,000 (c)- - - Insurance proceeds - - - - - Transfers in 3,825,974 4,380,329 6,103,845 9,568,234 10,017,935 Transfers out (2,741,040) (3,222,095) (4,887,361) (8,537,830) (10,305,165) Total other financing sources (uses)1,923,045$ 12,181,180$ 2,621,610$ 1,806,982$ 628,451$ Net change in fund balance (1,348,464)$ 14,181,707$ 2,126,603$ 1,311,975$ (6,690,972)$ Debt service as a percentage of noncapital expenditures 18.09%20.78%20.28%23.61%22.19% roads, water, sewer, and related infrastructure (Series 2017B.) Also included is a $25,000 tax increment revenue bond. also used to refinance the municipal center lease. in connection with all or a portion of designing, developing, and construction of a new Public Safety Headquarters and related fire apparatus. (c) In March 2020, the City issued Series 2020 General Obligation Bonds in the amount of $10,250,000 for the purposes of defraying the costs incurred (b) In May 2017, the North Augusta Public Facilities Corporation entered into an installment purchase transaction. Proceeds from this transaction were (a) 2017 installment purchase revenue bond to construct and equip two parking decks, a stadium, conference facilities, a riverfront park, and certain Year Ending December 31 (modified accrual basis of accounting) Year Ending December 31 City of North Augusta, South Carolina Changes in Fund Balances, Governmental Funds Last Ten Fiscal Years 93 Year Ended December 31 (a) Tax Year Assessed Value Estimated Actual Value Assessed Value Estimated Actual Value Assessed Value Estimated Actual Value Tax Rate 2014 2013 69,161,813$ 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 (b) 2021 128,916,969 (c)2,630,664,307 47,567,398 360,103,698 176,484,367 2,990,768,006 73.50 2023 2022 136,906,451 (c)2,793,696,725 54,000,383 408,803,896 190,906,834 3,202,500,621 75.50 (b) Reassessment year, see Table VI (c) Includes real, merchants inventory, merchants furniture and fixtures, personal property taxes, and special assessments for parcels in the City's Municipal Improvement District (MID). Assessed value of real property less the special assessmesnts in the MID totals $127,048,415. Source: City of North Augusta tax records TOTALREAL PROPERTY PERSONAL PROPERTY (a) The City of North Augusta uses different tax years for real and personal property taxes because on April 30, 1980, the S.C. General Assembly passed a law that provided for the billing and collection of personal property taxes on motor vehicles on a staggered basis according to expiration of the license tag. City of North Augusta, South Carolina Assessed Value and Estimated Actual Value of Taxable Property Last Ten Fiscal Years 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 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 2021 73.50 - 73.50 65.10 2.20 67.30 134.20 33.70 167.90 308.70 2023 2022 75.50 - 75.50 68.14 2.20 70.34 134.20 33.70 167.90 313.74 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 $1,000 of assessed valuation Tax Rate Limits: None Taxes Due: Personal: In the month preceding tag renewal by the S.C. State Highway Department Real and Merchants: April 30th Personal: N/A--Taxes on personal property paid in advance Taxes Delinquent: Real and Merchants: May 1st Discount Allowed: None Penalties: Real and Merchants: 15% Reassessment YearsTax Years 2016, 2021 Uncollected taxes are turned over to the City Delinquent Tax Collector on June 1st, with authority to enforce collection by tax sale. (a) Because of the change mandated by State law noted in the footnote of Table V, the City of North Augusta uses different tax years for real and personal property taxes. City of North Augusta, South Carolina Direct and Overlapping Property Tax Rates Last Ten Fiscal Years City of North Augusta Overlapping Property Tax Rates County of Aiken Aiken County School District 95 2023 2014 Taxpayer Assessed Valuation (d) Rank Percentage of Total Assessed Valuation Assessed Valuation Rank Percentage of Total Assessed Valuation Dominion Energy (a)4,720,270$ 1 2.47% 2,684,550$ 1 3.02% Graybul Ironwood LLC 2,695,430 2 1.41% Wal-Mart, Inc. 2,380,410 3 1.25% 1,161,910 4 1.31% Leo@Augusta, LLC (b)2,359,310 4 1.24% Ackerman Greenstone North Augusta 2,017,160 5 1.06% Allnex Industries, Inc. (c)1,396,880 6 0.73%1,335,980 2 1.50% SUSO 3 Augusta, LP 1,191,520 7 0.62% CVS SC Distribution, Inc.1,068,660 8 0.56%657,080 8 0.74% Halocarbon Life Sciences, LLC 988,130 9 0.52%1,081,740 6 1.22% SRP Federal Credit Union 980,390 10 0.51%1,200,890 3 1.35% North Augusta Plaza SC, LLC 1,087,920 5 1.22% The Kroger Company 756,470 7 0.85% Bell South Telecommunications 576,300 9 0.65% Lowes Home Centers, Inc.502,580 10 0.57% TOTAL Taxable Assessed 19,798,160$ 10.37%11,045,420$ 12.42% 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 2023 (tax year 2022) 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) Dominion Energy formerly S.C. Electric & Gas Co. (b) Leo@Augusta, LLC formerly Next Chapter Sweetwater LLC (c) Allnex formerly Cytec Surface Specialties (d) 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 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% 24,013 6,786,273 99.73% 2016 2015 7,026,901 6,992,988 99.52% 15,435 7,008,423 99.74% 2017 (c) 2016 7,484,042 7,446,013 99.49% 12,419 7,458,432 99.66% 2018 2017 8,064,166 8,018,222 99.43% 20,617 8,038,839 99.69% 2019 2018 8,460,054 8,404,331 99.34% 21,449 8,425,780 99.59% 2020 2019 10,606,540 9,655,624 91.03% 907,520 10,563,144 99.59% 2021 2020 11,368,310 11,326,981 99.64% 17,428 11,344,409 99.79% 2022 (c) 2021 12,971,601 12,883,770 99.32% 78,990 12,962,760 99.93% 2023 2022 $14,413,466 $14,394,526 99.87%- 14,394,526 99.87% (a) Includes real, merchants inventory, merchants furniture and fixtures, personal property taxes, and special assessments for parcels in the City's Municipal Improvement District (MID). (b) Because of the change by State law noted in the footnote of Table V, the City of North Augusta uses different tax years for real and personal property taxes. (c) Reassessment year, see Table VI Total Collections to Date Collected within the Current Year of Tax Levy Source: City of North Augusta tax records City of North Augusta, South Carolina Property Tax Levies and Collections Last Ten Fiscal Years 97 Year Ended December 31 Total Revenues Gross Sales Total Number of Licenses Issued 2014 5,032,737$ 1,047,778,440$ 1,861 2015 5,302,353 1,098,056,589 1,849 2016 5,514,782 1,143,626,048 1,877 2017 5,727,383 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 2023 6,993,010 1,691,571,882 2,319 (a) Source: City of North Augusta business license records City of North Augusta, South Carolina Business Licenses / Franchise Fees Last Ten Fiscal Years Increase due to numerous one-time licenses for construction related to projects in Riverside Village. 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 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 2023 9,706 810 10,516 2,930 159 3,089 13,605 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 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 2023 11,741 680 12,421 976 34 1,010 13,431 Source: City of North Augusta utility billing rec 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 City of North Augusta Municipal Government 1 73,206,900 1 53,600,800 Halocarbon Chemicals, Inc.Manufacturing 2 62,434,300 2 46,289,300 Crowne Plaza Hotel 3 36,063,100 Allnex Industries, Inc.Manufacturing 4 30,575,500 3 38,947,900 Ambiopharm Pharmaceutical Manufacturer 5 23,339,900 Aiken County Schools School District 6 16,425,000 5 10,717,000 Plaza Place 2020, LLC Apartments 7 15,502,700 JARS at Breckenridge/Plaza Terrace Apartments 8 11,536,500 6 9,969,800 Graybul Ironwood, LLC Apartments 9 10,149,200 Trubuild, LLC Mobile Home Park 10 6,911,300 7 7,481,300 (c) Breezy Hill Water & Sewer Authority Water District Provider 4 19,053,000 Pinecrest Apartments Apartments 8 6,800,200 Whispering Woods Apartments Apartments 9 5,609,300 (b) CIG Plaza Place LLC Apartments 10 5,082,000 (a) Wastewater Customers Customer Name Type of Business Rank Water Usage Rank Water Usage Edgefield County Water & Sewer Authority Sewer District Provider 1 758,177,000 1 637,643,000 Halocarbon Chemicals, Inc.Manufacturing 2 62,434,300 2 46,289,300 City of North Augusta Pharmaceutical Manufacturer 3 43,385,797 Allnex Industries, Inc Manufacturing 4 34,062,447 3 35,883,573 Crowne Plaza Municipal Government 5 31,555,500 Ambiopharm Pharmaceutical Manufacturer 6 23,339,900 Aiken County Schools School District 7 19,998,244 4 10,739,100 JARS at Breckenridge/Plaza Terrace Apartments 8 13,066,997 5 9,141,903 Graybul Ironwood, LLC Apartments 9 8,449,100 Trubuild, LLC Mobile Home Park 10 7,377,800 6 7,510,697 (c) National Healthcare Nursing Home Facility 9 7,171,603 Willow Wick Apartments Apartments 7 7,403,197 Whispering Woods Apartments Apartments 8 7,224,900 (b) Pinecrest Apartments Apartments 10 7,012,097 Note: Consumption is measured in gallons (a) CIG Plaza Place LLC formerly Plaza Place Apartments, LLC (b) Whispering Woods Apartments formerly The Housing Authority (d) Trubild, LLC formerly Gentry's Mobile Home Park 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 2023 Annual Consumption 2014 Annual Consumption 2023 Annual Consumption 2014 Annual Consumption 100 Year Ended December 31 General Obligation Bonds Revenue Bonds Municipal Center Lease Financed Purchases Payable Revenue Bonds Financed Purchases Payable PSA Capacity Payable Total Primary Government Population (Estimate) Per Capita 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 2023 6,914,000 66,595,000 - 2,021,891 14,929,000 1,374,020 - 91,833,911 26,117 3,516.25 (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 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, related infrastructure (Series 2017B.) Also included is a $25,000 tax increment revenue bond. (a) 2015 installment purchase revenue bond to construct and equip a parking garage, 2014A and 2015A SC Drinking Water Revolving Loan Fund serial bonds to construct a 101 Year Ended December 31 General Obligation Bonds (GOB) Estimated Actual Taxable Value (1)of Property % of Estimated Actual Taxable Value of Property Population (2)Per Capita 2014 -$ 1,560,713,463$ 0.00%22,048 -$ 2015 - 1,601,776,784 0.00%22,568 - 2016 - 1,654,673,527 0.00%22,932 - 2017 - 1,828,175,365 0.00%23,275 - 2018 - 1,887,487,329 0.00%23,444 - 2019 - 1,942,475,306 0.00%23,584 - 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 2023 6,914,000 3,202,500,621 0.22%26,117 264.73 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. (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 $10,250,000 of general obligation bonds as part of a favorable Capital Projects Sales Tax referendum. These bonds were issued in 2020 to construct and equip a public safety headquarters and bond payments will be made from revenues collected from the capital projects sales tax. (1)City of North Augusta tax records (2)The population for year 2010 is provided by the US Census Bureau. Population estimates for all other years are provided by the City of North Augusta Planning and Development Department. 102 Jurisdiction Debt Outstanding @ December 31, 2023 Percent Applicable to City of North Augusta Amount Applicable to City of North Augusta Direct Debt City of North Augusta *75,530,891$ 100.00%75,530,891$ Overlapping Debt County of Aiken 37,152,015$ 20.16%7,489,846$ Aiken County School District 180,460,000 20.16%36,380,736 Sub-total - Overlapping Debt 217,612,015$ 20.16%43,870,582$ Total 293,142,906$ 119,401,473$ City of North Augusta, South Carolina Direct and Overlapping Governmental Activities Debt As of December 31, 2023 * Includes Revenue Bonds and Financed Purchases Payable 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 assessed value to Aiken County's total taxable assessed value. Source: Aiken County and Aiken County School District 103 2014 2015 2016 2017 2018 Debt Limit 7,111,789$ 7,335,620$ 7,575,153$ 8,492,530$ 8,777,324$ Total net debt applicable to limit (a)- - - - - Legal debt margin 7,111,789$ 7,335,620$ 7,575,153$ 7,335,620$ 8,492,530$ Total net debt applicable to the limit as a percentage of debt limit 0.00%0.00%0.00%0.00%0.00% 2019 2020 2021 2022 2023 Debt Limit 9,208,222$ 11,544,533$ 12,373,671$ 14,118,749$ 15,272,547$ Total net debt applicable to limit - - (b)- - - Legal debt margin 8,777,324$ 11,544,533$ 12,373,671$ 14,118,749$ 15,272,547$ 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 $10,250,000 of general obligation bonds as part of a favorable Capital Projects Sales Tax referendum. These bonds were issued in 2020 to construct and equip a public safety headquarters and bond payments will be made from revenues collected from the capital projects sales tax. 104 Year Ended December 31 Total Operating Revenue Total Operating Expenses Net Revenue Available for Debt Service Revenue Bond Principal Revenue Bond Interest Total Debt Service Coverage Ratio 2014 9,236,276$ 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 1,145,214 139,998 1,285,212 2.42 2023 11,771,234 8,998,304 2,772,930 1,148,385 129,332 1,277,717 2.17 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 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% 2022 174,150 8,986,274 51,601 3.2% 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 City of North Augusta County of Aiken 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 2023. 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 2022 are provided by the City's Planning and Development Department. 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 12,720 1 17.98% 10,274 1 15.03% Aiken County Public Schools In / Out 3,394 2 4.80% 3,222 2 4.71% Bridgestone Americas (2)Out 2,167 3 3.06% 1,200 5 1.76% Kimberly-Clark Corp. Out 2,050 4 2.90% 1,250 3 1.83% Aiken Regional Medical Center Out 1,237 5 1.75% 1,237 4 1.81% Aiken County Government Out 1071 6 1.51% 906 6 1.33% Advanced Glassfiber Yarn Out 800 7 1.13% 600 8 0.88% Shaw Industries Out 730 8 1.03% 600 9 0.88% UPS Customhouse Brokerage Out 600 9 0.85% 450 10 0.66% City of Aiken Out 442 10 0.62% 430 11 0.63% Hubbell Power Systems Out 418 11 0.59% 357 12 0.52% Emerson Automation Solutions (b)Out 369 12 0.52% 323 14 0.47% Autoneum North America, Inc. Out 362 13 0.51% 228 17 0.33% The Calstar Group (a)Out 350 14 0.49% 230 16 0.34% MTU America, Inc Out 330 15 0.47% 293 15 0.43% PACTIV Corp. Out 330 16 0.47% 213 20 0.31% CVS Distribution Center In 285 17 0.40% Zeus Industrial Products Inc Out 260 18 0.37% City of North Augusta In 256 19 0.36% 216 18 0.32% BAE Systems, Inc. Out 253 20 0.36% TTX/Hamburg Industries, Inc. In 330 13 0.48% Glaxo Smith Kline Out 215 19 0.31% WSI-SRS Team Out 682 7 1.00% Location: In city limits, Out of city limits (1) SRNS/SRR, including subcontractors 11,266 (2) Bridgestone Americas Tire Operat 1,667 and temporary construction workers Bridgestone Offroad 500 Centerra 704 2,167 Department of Energy 357 National Nuclear Security Administration 158 Savannah River Ecology Lab 122 US Forestry Service 74 Other Subcontractors 39 12,720 Savannah River Nuclear Solutions/Savannah River Remediation Company employees live in 7 counties in South Carolina and 2 in Georgia with less than 6% scattered in other areas. County # of workers Aiken County, South Carolina 6,057 Columbia County, Georgia 1,598 Richmond County, Georgia 1,332 Barnwell County, South Carolina 598 Edgefield County, South Carolina 409 Orangeburg County, South Carolina 124 Bamberg County, South Carolina 90 Lexington County, South Carolina 237 Other 823 11,268 (a) Formerly Carlisle Tire and Wheel Company (b) Formerly ASCO Valve, Inc. Source: Economic Development Partnership, Various Employers, and South Carolina Employment Commission City of North Augusta, South Carolina Principal Employers Current Year and Nine Years Ago 2023 2014 107 Fund / Function / Department 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 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 1.0 1.0 1.0 2.0 2.0 2.0 2.0 2.0 Information Technology 0.0 0.0 1.5 (a) 1.5 1.5 4.0 (e) 4.0 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 0.0 Finance 5.5 5.5 4.0 4.0 4.0 4.0 4.0 4.0 4.0 4.0 Human Resources 0.0 0.0 2.0 (b) 2.0 2.0 2.0 2.0 2.0 2.0 2.0 Building Standards 3.5 4.5 4.5 4.5 4.5 4.5 4.5 4.5 4.5 5.25 Planning and Development 2.0 2.0 2.0 2.5 2.5 3.5 3.5 4.5 6.0 6.0 City Buildings 3.0 3.0 0.0 0.0 0.0 0.0 0.0 0.0 2.0 2.0 Property Maintenance 12.0 13.0 14.0 14.0 14.0 15.0 18.0 18.0 18.0 18.0 Public Safety 79.0 84.0 88.0 90.0 90.0 91.0 92.0 92.0 93.0 94.0 Public Works Engineering 1.5 1.5 2.5 2.5 2.5 3.0 3.0 3.0 2.75 3.00 Streets & Drains 9.5 10.0 10.0 10.0 10.0 10.0 10.0 10.0 11.0 11.0 Parks, Recreation & Tourism Recreation 4.0 5.0 5.0 4.0 4.0 4.0 4.0 7.0 8.0 8.0 Parks 5.0 5.0 5.0 5.0 5.0 5.0 5.0 6.0 7.0 7.0 Community Center 2.0 2.0 2.0 2.0 2.0 2.0 2.0 1.0 1.0 1.0 Tourism 0.0 0.0 3.0 (f) 3.0 3.0 3.0 3.0 3.0 1.0 1.0 RVP Activities 6.0 6.0 6.0 7.0 7.0 7.0 7.0 5.0 5.0 5.0 Sub-total 138.0 146.5 152.5 155.0 155.0 162.0 166.0 168.0 173.25 174.25 Stormwater Fund Stormwater 5.0 4.5 5.5 5.0 5.0 5.5 6.0 6.5 6.25 6.25 Sub-total 5.0 4.5 5.5 5.0 5.0 5.5 6.0 6.5 6.25 6.25 Riverfront Central Core Dev. Fund Tourism 0.0 0.0 0.0 1.0 (d) 1.0 1.0 1.0 1.0 1.0 1.0 Sub-total 0.0 0.0 0.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 Sanitation Fund Public Services Information Technology 0.0 0.0 0.5 (c) 0.5 0.5 0.0 (e) 0.0 0.0 0.0 0.0 Sanitation 26.0 26.0 25.5 26.5 26.5 25.5 26.5 26.5 26.5 26.5 Material Recovery Center 8.5 8.5 8.5 8.5 8.5 8.5 8.5 8.5 8.5 5.5 Sub-total 34.5 34.5 34.5 35.5 35.5 34.0 35.0 35.0 35.0 32.0 Water & Wastewater Fund Public Utilities Information Technology 0.0 0.0 2.0 (a) 2.0 2.0 0.0 (e) 0.0 0.0 0.0 0.0 Utilities Finance 5.0 5.0 4.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0 Utilities Administration 7.5 7.5 7.5 7.5 7.5 6.5 6.5 6.5 6.5 6.5 Water Operations 8.0 8.0 8.0 8.0 8.0 9.0 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 11.0 11.0 11.0 11.0 11.0 Sub-total 38.5 38.5 39.5 40.5 40.5 39.5 39.5 39.5 39.5 39.5 TOTAL 216.0 224.0 232.0 237.0 237.0 242.0 247.5 250.0 255.0 253.0 (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 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 General Government Size of City (square miles) 21.019 21.150 21.172 21.177 21.180 21.970 22.210 22.240 22.310 22.355 Annexations approved by City Council 5 - 2113117 3 6 Building permits issued 660 648 668 689 703 779 755 846 1,022 807 Plumbing permits issued 310 373 381 296 358 389 420 496 542 405 Mechanical permits issued 433 417 520 455 494 561 551 612 619 496 Electrical & Solar permits issued 431 434 482 813 618 523 582 725 642 711 Business licenses issued 1,861 1,849 1,877 2,017 2,420 2,254 2,302 2,192 2,208 2,319 Police Total calls for service 38,973 40,567 37,929 37,322 38,112 40,952 32,520 32,847 35,578 34,800 Criminal arrests 1,360 1,766 1,572 1,338 885 1,127 975 1,031 778 638 Incident reports (police action required) 3,399 3,627 3,888 3,966 3,797 3,356 3,035 3,105 3,497 2,811 Accident reports (collisions) 1,012 1,190 1,187 1,267 1,390 1,191 1,038 1,182 1,162 1,175 Traffic offenses (resulting in fine) 8,785 8,809 7,933 8,261 8,490 9,057 7,677 7,811 7,484 8,923 Drug offenses 157 177 210 372 214 154 147 153 134 104 Burglaries reported 108 97 132 93 94 76 59 67 62 64 Fire Actual fire calls - Inside City 145 114 105 83 377 384 86 399 370 78 Actual fire calls - Outside City 12 7 31 32 56 26 36 21 31 17 Solid Waste Garbage Refuse Collected (tons) - Residential 9,143 10,227 9,334 9,554 9,473 8,613 10,471 11,676 10,793 13,230 Garbage Refuse Collected (tons) - Commercial 5,037 4,723 5,502 6,082 5,647 6,108 6,412 6,362 5,780 3,219 Recyclables Collected (tons) 5,313 6,656 5,047 5,437 5,507 4,312 5,104 4,510 2,181 2,679 Property Maintenance Tree trimming hours 275 1,378 3,516 1,338 2,050 1,202 2,073 1,963 2,677 2,383 Mowing hours 12,976 10,944 12,892 14,036 10,368 11,025 12,651 12,032 11,215 13,526 Planting hours 4,628 1,726 1,388 1,145 1,504 754 1,542 913 1,454 1,637 Streets and Drains Pothole patching / asphalt tons 409 341 464 142 132 169 227 225 232 232 Curb, gutter & sidewalk repair / CY 378 472 292 400 294 402 441 414 357 183 Storm drain inlets cleaned 282 419 619 848 664 612 616 537 687 524 Street sweeping / miles 977 1,339 822 574 563 588 785 697 1,424 416 Parks and Recreation Baseball / Number of Players 789 779 687 592 576 617 466 578 634 606 Youth Softball / Number of Players 259 238 234 240 221 211 133 207 276 311 Spring Soccer / Number of Players 511 484 532 585 580 567 262 578 667 722 Fall Soccer / Number of Players 473 552 552 493 540 540 470 578 514 548 Youth Basketball / Number of Players 680 640 615 652 577 647 492 701 792 699 Youth Football / Number of Players 281 280 239 219 267 269 202 313 337 350 Youth Cheerleading / Number of Participants 96 113 117 182 164 170 142 196 240 252 Youth Volleyball / Number of Participants 83 94 73 86 82 95 105 132 162 179 Water New water taps 77 77 184 130 128 103 119 89 210 132 Water lines installed / L.F. 2,068 2,599 913 4,115 6,638 6,432 3,230 765 7,230 6,385 Water line leaks repaired 34 23 27 16 19 18 9 10 26 18 Average daily water pumped 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 3,399,000 Daily peak demand (gallons per day) 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 5,298,000 Peak day 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 8/25/2023 Wastewater New sewer taps 135 158 212 154 197 187 208 284 252 185 Wastewater lines installed / L.F. 508 1,970 1,259 6,208 8,423 5,077 2,360 765 5,847 11,745 Wastewater lines repaired / L.F. 62 680 556 252 16 47 32 34 64 26 Wastewater lines cleaned / L.F. 93,859 70,610 57,320 34,516 49,432 67,416 41,057 30,273 27,310 41,197 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 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Public Safety Number of Stations 2 3 33333333 Number of Public Safety Officers 58 61 62 64 65 65 65 66 67 71 Number of Volunteer Firemen 20 20 20 25 20 20 20 20 20 20 Insurance Rating (ISO)Class 3 Class 2 Class 2 Class 2 Class 2 Class 2 Class 2 Class 2 Class 2 Class 2 Signalized Intersections 30 31 31 32 32 32 32 34 35 35 Number of Fire Hydrants Inside City 809 812 814 816 848 848 852 853 860 864 Outside City 149 149 149 149 149 149 150 150 163 163 Public Works Miles of Streets 141.37 141.91 143.77 144.2 144.9 145.75 147.75 149.86 150.85 152.54 Street Lights 1,800 1,817 1,841 1,859 1,980 2,000 2,040 2,075 2,097 2,142 Parks, Recreation & Tourism Number of Parks 22 22 22 22 22 22 23 23 23 23 Park Acreage 550 550 550 550 550 550 527 527 527 527 Miles of Paved Greeneway 14.0 14.0 14.0 14.0 14.0 14.0 14.0 14.0 14.1 14.1 Number of Picnic Shelters 9 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 15 15 15 15 Multi-purpose Fields 3 3 33333333 Community Center 1 1 11111111 Activities Center 1 1 11111111 Water Miles of Water Lines 196.08 228.68 229.07 229.84 231.09 232.3 232.74 232.88 234.25 235.45 Maximum Pumping Capacity 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 12,000,000 (gallons per day) Sewer Miles of Wastewater Lines 228.57 229.20 229.57 230.74 232 232.96 233.4 235.71 236.17 238.39 Stormwater Miles of Storm Sewer 60.37 60.73 68.01 68.47 69.21 70.04 71.66 73.43 74.38 75.98 Source: City of North Augusta's Year-end Departmental Reports (a) In 2014, SCDHEC reduced the City's maximum pumping capacity to 12,000,000 GPD 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 $24.76 1 Inch 6,000 gallons 3.90 13.44 17.34 5.85 28.83 34.68 1 1/2 Inch 9,000 gallons 3.90 18.08 21.98 5.85 38.11 43.96 2 Inch 15,000 gallons 3.90 27.47 31.37 5.85 56.89 62.74 3 Inch 24,000 gallons 3.90 41.69 45.59 5.85 85.33 91.18 4 Inch 30,000 gallons 3.90 51.17 55.07 5.85 104.29 110.14 6 Inch 90,000 gallons 3.90 146.03 149.93 5.85 294.01 299.86 Volume of Consumption Debt Service O & M Total Debt Service O & M Total Next 10,000 gallons $0.15 $1.10 $1.25 $0.30 $2.20 $2.50 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 $21.44 $30.18 Base Fee Commercial (monthly) In and Out City Inside City Outside City 2 cubic yard container $51.64 $2.86 $4.04 3 cubic yard container 54.05 2.86 4.04 4 cubic yard container 56.44 2.86 4.04 6 cubic yard container 61.73 2.86 4.04 8 cubic yard container 67.54 2.86 4.04 Stormwater Management Service Charges in effect December 31, 2023 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, 2023 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, 2023 Volume Rates / Outside City Limits Sanitation Service Charges in effect December 31, 2023 Residential (monthly) Volume Charge (per cubic yard) City of North Augusta, South Carolina Enterprise Funds Rates and Charges Rates / Charges in effect December 31, 2023 Base Rates Base Rates / Outside City Limits Volume Rates / Inside City Limits Volume Rates / Outside City Limits 111 1/1/2020 1/1/2018 1/1/2017 1/1/2023 Sanitation Rollcart Charge increased $1.77 inside city limits and $2.47 outside city limits Commercial Volume Charge increased $0.15 inside city limits and $0.15 outside city limits 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) History of Water Rate Changes (past 10 years) 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, 2023 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, 2023, 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 June 18, 2024. 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 June 18, 2024 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 AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE Honorable Mayor and Members of City Council City of North Augusta, South Carolina Report on Compliance for Each 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 programs for the year ended December 31, 2023. The City’s major federal programs are 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 programs for the year ended December 31, 2023. 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 were not 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 June 18, 2024 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 1505-0271 $ 2,577,470 $ - Total U.S. Department of Treasury 2,577,470 - U.S. Department of Justice Passed through from the S.C. Governor's Office: Bulletproof Vest Partnership Program 16.607 N/A 21,536 - Total U.S. Department of Justice 21,536 - 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 5,280 - Police Traffic Services Grant 20.600 N/A 8,973 - Police Traffic Services Grant 20.600 N/A 69,119 - Total Highway Safety Cluster 83,372 - Total U.S. Department of Transportation 83,372 - U.S. Department of Agriculture Direct: Emergency Watershed Protection Program 10.923 NR224639XXXXC001 1,169,387 - Total U.S. Department of Agriculture 1,169,387 - Total Expenditures of Federal Awards $ 3,851,765 $- FOR THE YEAR ENDED DECEMBER 31, 2023 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, 2023. 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, 2023. 119 CITY OF NORTH AUGUSTA, SOUTH CAROLINA SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR THE FISCAL YEAR ENDED DECEMBER 31, 2023 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 U.S. Department of the Agriculture – 10.923 Emergency Watershed Protection Program 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, 2023 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