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12.31.2024 Annual Comprehensive Financial ReportNorth Augusta South Carolina's Riverfront CITY OF NORTH AUGUSTA Annual Comprehensive Financial Report Year Ended December 31,2024 CITY OF NORTH AUGUSTA, SOUTH CAROLINA ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2024 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 - 3 Management’s Discussion and Analysis .................................................................................................... 4 - 13 Basic Financial Statements: Government-wide Financial Statements Statement of Net Position ........................................................................................................................ 14 Statement of Activities .............................................................................................................................. 15 Fund Financial Statements Balance Sheet – Governmental Funds .................................................................................................... 16 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position .................................................................................................................... 17 Statement of Revenues, Expenditures and Changes in Fund Balances – Governmental Funds ........................................................................................................ 18 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities .......................................... 19 General Fund – Statement of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual ..................................................................................................... 20 Statement of Net Position – Proprietary Funds ..................................................................................... 21 Statement of Revenues, Expenses and Changes in Net Position – Proprietary Funds ................................................................................................................................. 22 Statement of Cash Flows – Proprietary Funds .......................................................................... 23 and 24 Notes to Financial Statements .............................................................................................................. 25 - 62 Required Supplementary Information: Schedule of Proportionate Share of the Net Pension Liability – South Carolina Retirement System ..................................................................................................... 63 Schedule of Proportionate Share of the Net Pension Liability – Police Officers Retirement System ..................................................................................................... 63 Schedule of Contributions – South Carolina Retirement System ......................................................................................... 64 and 65 Schedule of Contributions – Police Officers Retirement System ......................................................................................... 64 and 65 CITY OF NORTH AUGUSTA, SOUTH CAROLINA ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2024 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 ..................................................................................................................................... 66 - 74 Combining Balance Sheet – Nonmajor Governmental Funds .............................................................. 75 Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Nonmajor Governmental Funds ...................................................................................... 76 Combining Balance Sheet – Nonmajor Special Revenue Funds ......................................................... 77 Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Nonmajor Special Revenue Funds .................................................................................. 78 Combining Balance Sheet – Nonmajor Capital Projects Funds ........................................................... 79 Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Nonmajor Capital Projects Funds ................................................................................... 80 Enterprise Fund – Water and Wastewater System Fund: Schedule of Revenues and Expenses – Budget and Actual – GAAP Basis ................................... 81 Schedule of Operating Expenses – Budget and Actual – GAAP Basis ............................... 82 and 83 Enterprise Fund – Stormwater Utility Fund: Schedule of Revenues and Expenses – Budget and Actual – GAAP Basis ................................... 84 Schedule of Operating Expenses – Budget and Actual – GAAP Basis ........................................... 85 Enterprise Fund – Sanitation Services Fund: Schedule of Operating Revenues and Expenses – Budget and Actual – GAAP Basis ................. 86 Schedule of Operating Expenses – Budget and Actual – GAAP Basis ........................................... 87 Supplementary Information Required by the State of South Carolina: Uniform Schedule of Court Fines, Assessments and Surcharges (per ACT 96) .................... 88 and 89 STATISTICAL SECTION Financial Trends Information: Net Position by Component ..................................................................................................................... 90 Changes in Net Position ............................................................................................................... 91 and 92 Fund Balances, Governmental Funds ..................................................................................................... 93 Changes in Fund Balances, Governmental Funds ................................................................................ 94 Revenue Capacity Information: Assessed Value and Estimated Actual Value of Taxable Property ...................................................... 95 Direct and Overlapping Property Tax Rates ........................................................................................... 96 Principal Property Taxpayers .................................................................................................................. 97 Property Tax Levies and Collections ...................................................................................................... 98 Business Licenses/Franchise Fees ......................................................................................................... 99 Number of Utility Customers ................................................................................................................. 100 Ten Largest Water and Wastewater Customers .................................................................................. 101 CITY OF NORTH AUGUSTA, SOUTH CAROLINA ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2024 TABLE OF CONTENTS (CONTINUED) Page Number STATISTICAL SECTION (CONTINUED) Debt Capacity Information: Ratio of Outstanding Debt by Type ........................................................................................................... 102 Ratios of General Bonded Debt Outstanding ........................................................................................... 103 Direct and Overlapping Governmental Activities Debt ........................................................................... 104 Legal Debt Margin Information .................................................................................................................. 105 Pledged-Revenue Bond Coverage ............................................................................................................ 106 Demographic and Economic Indicators: Economic Statistics .................................................................................................................................... 107 Principal Employers .................................................................................................................................... 108 Full-time Budget Equivalent Employees by Fund/Function/Department .............................................. 109 Operating Information: Operating Indicators by Function/Program .............................................................................................. 110 Capital Asset Statistics by Function/Program ......................................................................................... 111 Enterprise Fund Rates and Charges ......................................................................................................... 112 Enterprise Funds History of Rates and Charges ..................................................................................... 113 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 ....................... 114 and 115 Independent Auditor’s Report on Compliance for Each Major Program and on Internal Control over Compliance Required by the Uniform Guidance ........................... 116 - 118 Schedule of Expenditures of Federal Awards ............................................................................................... 119 Notes to the Schedule of Expenditures of Federal Awards ......................................................................... 120 Schedule of Findings and Questioned Costs .................................................................................. 121 and 122 June 24, 2025 Honorable Mayor, Members of City Council, and Citizens of North Augusta North Augusta, South Carolina 29841 Ladies and Gentlemen: State law requires that all general purpose local governments publish a complete set of financial statements presented in conformity with generally accepted accounting principles (GAAP) and audited in accordance with generally accepted auditing standards (GAAS) by a firm of licensed certified public accountants. Pursuant to that requirement, we hereby issue the annual comprehensive financial report of the City of North Augusta (the “City”) for the fiscal year ended December 31, 2024. This report consists of management’s representation concerning the finances of the City. Management assumes full responsibility for the completeness and reliability of the information contained in this report based upon a comprehensive framework of internal controls that it has established for this purpose. Because the cost of internal controls should not exceed anticipated benefits, the objective is to provide reasonable, rather than absolute, assurance that the financial statements are free of any material misstatements. The City’s financial statements have been audited by Mauldin and Jenkins, a firm of licensed certified public accountants. The goal of the independent audit is to provide reasonable assurances the financial statements of the City, for the fiscal year ended December 31, 2024, are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. The independent auditor has rendered an unmodified opinion that the City of North Augusta’s financial statements, for the fiscal year ended December 31, 2024, are fairly presented in conformity with GAAP. The independent auditor’s report is presented as the first component of the financial section of this report. Management’s discussion and analysis (MD&A) immediately follows the independent auditor’s report and provides a narrative introduction, overview, and analysis of the basic financial statements. This Letter of Transmittal is designed to complement the MD&A and should be read in conjunction with it. 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, 2024 Present Allocation (MGD) Present Use (MGD) City of North Augusta 8.672 5.01448 City of Aiken 7.134 4.89056 Aiken County .000 0.00000 Allnex, Inc .900 0.07981 Bath .070 0.02868 Breezy Hill 2.057 0.70748 Beech Island Water & Sewer .090 0.01612 Clearwater .050 0.04356 Langley .060 0.02900 Valley Public Service Authority .767 0.54024 PACTIV Advanced Packaging Solutions .050 0.01376 Kimberly Clark .150 0.04965 Uncommitted .000 0.00000 Total 20.000 11.41334 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 iii management control device. A budget is legally adopted annually for the General Fund on a basis consistent with GAAP. Budgets for Special Revenue Funds and Capital Projects Funds are adopted on a project or activity basis instead of an annual operating cycle basis. Budgets for the Enterprise Funds are adopted annually on a basis consistent with GAAP except that depreciation is not a budgeted item. The transfer of budgeted amounts between functional areas must be approved by City Council; however, the City Administrator can amend the budget at the line item or department level, within a functional area, not to exceed $5,000. The level of budgetary control (that is, the level at which expenditures cannot legally exceed the appropriated amount) is established by department within an individual fund. Department heads have the ability to make budget changes within their departments. Budgetary data may be presented at lower levels within the department at the line item level. 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 26,395 for 2024. During the past ten years, Aiken County’s unemployment rate has fluctuated from 6.0 percent in 2014, decreasing to 3.2 percent during 2022, and then increasing to 4.2 percent for 2024. The 2024 rate is the slightly more than South Carolina’s 2024 unemployment rate of 4.1 percent and the 2024 national rate of 4.0 percent. The increases in unemployment rates recently stem from the significant population growth in both the state of South Carolina and the county of Aiken, including a large influx of new residents into the workforce. Aiken County granted an agreement to Ambiopharm for a Fee-In-Lieu-Of-Tax (FILOT). This tax incentive is designed to encourage businesses like Ambiopharm to invest and create jobs in Aiken County, which includes residents of the City of North Augusta. The incentive continues to help increase economic development of the county and city. 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 $90,132, Aiken County’s is $67,940, and the State’s is $66,818. Housing prices in the City continue to remain strong. Per the USCB, the median price of a single-family home in the City is $220,500. 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, Wando Woodlands, Gregory Landing, Rushing Waters, River North, Austin Heights, Butler’s Pond, Village Square Townhomes and Hammond’s Ferry. We continue to see development plans and growth at interstate access points and surrounding areas leading into iv our city including commercial construction for food service establishments and professional services. North Augusta is currently ranked 13th in the state of South Carolina in growth rate and is currently the 23rd largest municipality. 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 sixth season in the 4,500 seat SRP Park during 2024 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 began on additional mixed-use developments on the remaining parcels to include 315 apartments and 8,100 square feet of retail space. The additions to the Sharon Jones Amphitheater to include bathrooms and additional seating were completed and have added 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 2024 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 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, 2023 Executive Director/CEO vii Organizational Chart - 2024 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, 2024 ELECTED OFFICIALS Briton S. Williams, Mayor Jenafer F. McCauley, Mayor Pro TemporeDavid B. Buck, Councilman Pat C. Carpenter, Councilwoman David W. McGhee, Councilman Kevin W. Toole, Councilman APPOINTED OFFICIALS James S. Clifford, City Administrator Jacob D. McCauley, 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 Joe R. Johnson, Director of Public Safety Lynda R. Williamson, Director of Finance Thomas C. Zeaser, Director of Engineering & Public Works ix Financial Section North ^ Augusta South Carolina's Riverfront 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, 2024, 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, 2024, 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. 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. 1 mjcpa.com 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. Required Supplementary Information Accounting principles generally accepted in the United States of America require that the Management’s Discussion and Analysis (on pages 4 through 13), the Schedule of Proportionate Share of the Net Pension Liability – South Carolina Retirement System (page 63), the Schedule of Proportionate Share of the Net Pension Liability – Police Officers Retirement System (page 63), the Schedule of Contributions – South Carolina Retirement System (pages 64 and 65) and the Schedule of Contributions – Police Officers Retirement System (pages 64 and 65) 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. 2 mjcpa.com 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. 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 24, 2025, 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 24, 2025 3 MANAGEMENT’S DISCUSSION AND ANALYSIS As the 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, 2024. 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 $187,296,695 (net position). Of this amount, $1,857,640 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 and Statement No. 101, which required the City to recognize certain types of compensated absences that weren’t previously recognized under the old standard. • The City’s total net position increased by $28,472,002. • At the close of the current fiscal year, the City’s governmental funds reported combined fund balances of $30,742,135 an increase of $6,970,253 in comparison with the prior year. The residential growth in the City has led to higher property tax revenue as well as a 2 mil increase in the millage rate. 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 completed two major capital outlay construction projects, the Public Safety Headquarters and Bluff Avenue Road Reconstruction, in the Capital Projects Sales Tax IV Fund. Several of the projects obligated in the State and Local Fiscal Recovery Fund (SLFRF) were completed during the 2024 fiscal year as well. Approximately 13 percent of the governmental funds combined fund balance, $4,100,000, 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 $4,596,218 or 17.05 percent of total general fund expenditures. • The City’s outstanding debt decreased by ($5,081,293) 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. 4 Government-wide Financial Statements The government-wide financial statements are designed to provide readers with a broad overview of the City’s finances in a manner similar to a private-sector business. The statement of net position presents information on all of the City’s assets, liabilities, and deferred inflows/outflows of resources with the difference reported as net position. Over time, increases and decreases in net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating. 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 government-wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that aim 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 utilities, sanitation services, and stormwater enterprises. The government-wide financial statements include not only the City itself (known as the primary government), but also a legally separate public facilities corporation for which the City is financially accountable. The corporation, although a legally separate entity, functions for all practical purposes as a fund of the City and therefore has been included as an integral part of the primary government. The government-wide financial statements can be found immediately following this discussion and analysis. Fund Financial Statements A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the City can be divided into two categories: governmental funds and proprietary funds. The City does not have a fiduciary fund. Governmental funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government’s near-term financing requirements. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government’s near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The City maintains thirteen individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and 5 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 seven governmental funds is 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, but 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 for 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, accompanying notes, and 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 $187,296,695 at the close of the most recent fiscal year. City of North Augusta's Net Position 2024 2023 2024 2023 2024 2023 Current and other assets 35,901,729$ 38,219,543$ 25,671,975$ 24,226,981$ 61,573,704$ 62,446,524$ Capital assets 156,788,640 146,232,705 90,078,882 85,273,756 246,867,522 231,506,461 Total Assets 192,690,369 184,452,248 115,750,857 109,500,737 308,441,226 293,952,985 Deferred outflows of resources 2,867,861 2,109,138 958,553 866,283 3,826,414 2,975,421 Long-term liabilities outstanding 90,975,015 92,297,766 24,541,328 25,608,931 115,516,343 117,906,697 Other liabilities outstanding 4,921,701 14,099,447 2,012,971 1,770,519 6,934,672 15,869,966 Total Liabilities 95,896,716 106,397,213 26,554,299 27,379,450 122,451,015 133,776,663 Deferred inflow of resources 2,037,593 1,770,234 482,337 331,047 2,519,930 2,101,281 Net position: Net investment in capital assets 83,754,381 69,956,542 75,191,616 68,970,736 158,945,997 138,927,278 Restricted 16,928,855 11,272,709 9,564,203 9,143,935 26,493,058 20,416,644 Unrestricted (3,059,315) (2,835,312) 4,916,955 4,541,852 1,857,640 1,706,540 Total Net Position 97,623,921$ 78,393,939$ 89,672,774$ 82,656,523$ 187,296,695$ 161,050,462$ Governmental Activities Business-type Activities Total 6 By far, the largest portion of the City’s net position, 84.86 percent, reflects its investment in capital assets (e.g., land, land improvements, rights-of-way and easements, buildings, machinery and equipment, furniture and fixtures, vehicles, infrastructure, system improvements, PSA capital, and construction in progress), less any related outstanding debt to acquire those assets. The City uses these capital assets to provide a variety of services to its citizens. Accordingly, these assets are not available for future spending. Although the City’s investment in capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources since the capital assets themselves cannot be used to liquidate these liabilities. An additional portion of the City’s net position, 14.14 percent, represents resources that are subject to external restrictions on how they may be used. The remaining balance of $1,857,640 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. Both the governmental activities and business-type activities are able to report positive balances in all categories. The governmental unrestricted category was negative in the prior year. Unrestricted net position is negative in the prior years 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 2024, governmental activities increased the City’s net position by $20,726,067. Governmental activities revenues increased $19,866,718 from 2023 to 2024 primarily due to an increase in operating and capital grants and contributions as well as an increase in other tax revenue. Operating grants and contributions increased $4,454,648. Capital grants and contributions increased $255,787. Both increases were due to several projects allocated from the SLFRF funds that were initiated and completed during 2024. The City also received several grants from the state of South Carolina in connections with additional public safety officers as well as capital projects related to infrastructure and tourism. Other tax revenue increased 189.74 percent compared to the prior year as a result of the substantial amount of construction on the Bluff Ave project and Public Safety Headquarters, which initiated the receipt of revenue from the funds held by Aiken County Treasurer’s Office. Property taxes represent 25.36 percent of total revenues for governmental activities and increased $1,397,296 from 2023 due to an increased millage rate of 2 mills in the 2024 budget as well as growth in the City for both residential and construction properties. The taxable property values increased 3.65 percent over the prior year as the city continued to see growth. Charges for services include: business license revenues, franchise fees, construction permits, recreational programs, rentals and tournaments, and public safety fines. These revenues represent 19.45 percent of total revenues for governmental activities and are predominantly elastic in nature and vary with economic trends. Charges for services increased $1,170,948 related to continued increases in construction activity and new businesses opening during the year. The business license revenue collected in 2024 was 10 percent greater than the previous year. Permits issued in 2024 increased 24 percent over 2023. 7 Also, during 2024, governmental activities expenses increased by $3,257,842. General government expenses decreased by ($89,880) due to a decrease in capital outlay, offset by an increase in fuel costs, general inflation, and employee retention programs. The costs of cleanup activities from Hurricane Helene are included in General Government. Parks, Recreation, and Tourism expenses increased $302,386, or 6.02 percent, due to the increase in tourism and special events and the related expenses, increase to capital outlay, repairs and updates on park equipment and trails, as well as employee retention. Public Works expenses increased $87,478, or 2.45 percent due to employee retention programs. Public Safety expenses reflected an increase of 28.07 percent over the prior year due to increased capital outlay costs, vehicle repairs, and fuel costs. City of North Augusta's Changes in Net Position 2024 2023 2024 2023 2024 2023 Revenues: Program revenues: Charges for services 12,062,534$ 10,891,586$ 18,402,880$ 16,555,166$ 30,465,414$ 27,446,752$ Operating grants and contributions 9,488,327 5,033,679 23,515 1,301,017 9,511,842 6,334,696 Capital grants and contributions 255,787 - 1,157,324 1,631,416 1,413,111 1,631,416 General revenues: Property taxes 15,186,783 13,789,487 - - 15,186,783 13,789,487 Other taxes 18,418,203 6,356,851 - - 18,418,203 6,356,851 Other 4,472,167 3,945,480 1,822,888 1,808,683 6,295,055 5,754,163 Total Revenues 59,883,801 40,017,083 21,406,607 21,296,282 81,290,408 61,313,365 Expenses: General government 9,725,538 9,815,418 - - 9,725,538 9,815,418 Public safety 13,683,146 10,684,522 - - 13,683,146 10,684,522 Public works 3,662,018 3,574,540 - - 3,662,018 3,574,540 Parks, recreation, and tourism 5,329,246 5,026,860 - - 5,329,246 5,026,860 Interest and fiscal charges on debt service 3,240,704 3,281,470 - - 3,240,704 3,281,470 Water and wastewater - - 11,479,132 10,956,787 11,479,132 10,956,787 Sanitation - - 4,604,017 4,493,114 4,604,017 4,493,114 Stormwater - - 1,070,605 992,622 1,070,605 992,622 Savannah Bluff Lock and Dam - - 24,000 22,000 24,000 22,000 Total Expenses 35,640,652 32,382,810 17,177,754 16,464,523 52,818,406 48,847,333 Increase (decrease) in net position before transfers 24,243,149 7,634,273 4,228,853 4,831,759 28,472,002 12,466,032 Transfers (3,517,082) (323,294) 3,517,082 323,294 - - Increase in net position 20,726,067 7,310,979 7,745,935 5,155,053 28,472,002 12,466,032 Net position-beginning of year 76,897,854 71,082,960 81,926,839 77,501,470 158,824,693 148,584,430 Net position-end of year 97,623,921$ 78,393,939$ 89,672,774$ 82,656,523$ 187,296,695$ 161,050,462$ Governmental Activities Business-type Activities Total 8 Business-type Activities Business-type activities increased the City’s net position by $7,745,935. Sanitation rates remained unchanged in 2024. Stormwater had a $1 increase to all customers with the 2024 budget. The 2024 budget did not include an increase in rates for water and wastewater, however, there was an increase in the fourth quarter due to the Aiken County Public Service Authority increasing their Operation and Maintenance rates in June of 2024. Water sales increased 12.85 percent over the prior year due to residential and business growth within the City and the off-cycle rate increase. Water rates increased by $1 on the monthly base fee for customers inside city limits and $2 for customers outside of the city limits beginning October 1. Water sales were over budget in 2024 by approximately $265,921 related to an increase in usage and customer base, as well as the fee increase. The City’s gallons billed increased by 5.3 percent over the prior year. Sewer sales increased approximately $781,546, 10.86 percent, over the prior year complementing the increase in water sales. Sewer rates were also adjusted in October to include a $1 increase on the usage per 1,000 gallons. This was the same for both customers inside and outside of the city limits. Fees for sanitation services increased approximately $101,045 related to growth in the City. Recycling fees increased $10,573 from the prior year. Commercial tipping tons came in over budget by approximately $41,000 due to the amount of waste material being processed by the City’s Materials Recovery Facility (MRF) which was more than anticipated. The City was able to make use of the new facility (completed in 2023) for the entire 2024 fiscal year. Stormwater fees increased 19.72 percent as anticipated due to additional customers and the $1 fee increase for all customers. Expenses for the Water and Wastewater System increased by $553,147 from the prior year primarily due to increased fuel costs, employee retention programs, and equipment replacements for the existing water system. In 2024, the expenses for the Sanitation Services Fund showed an increase from the prior year of $112,645 due to increased depreciation of capital assets. Increased expenses in the Stormwater Utility Fund were $78,453 due to increased depreciation of capital assets. A total of $24,000 was expended from the Savannah Bluff Lock and Dam Fund. This expense for professional services was intended to assist the City and other members of the consortium in the execution of a solution to improve the lock and dam that is in the best interests of the parties directly affected by its operation. Financial Analysis of the Government’s Funds As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance- related legal requirements. Governmental Funds. The focus of the City’s governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City’s financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government’s net resources available for discretionary use as they represent the portion of fund balance that has not been limited for use by any of: an external party, the City itself, or a group or individual that has been delegated authority to assign resources for use for particular purposes by the City Council. At December 31, 2024, the City’s governmental funds reported combined fund balances of $30,742,135, an increase of $6,970,253 from the prior year. The majority of this increase is attributable to the sales tax revenue in the Capital Sales Tax IV Fund and the Intergovernmental revenue in the ARPA Fund. The City completed construction on two major projects listed on the referendum in 2024. In 2023, the majority of the expenses were paid by the GO Bond and in 2024, the sales tax revenue was remitted to the City for the completion of the project. Approximately 13 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 $400,000 for the year due to the City’s reserve requirement to adjust the unassigned fund balance in the General Fund as the budget fluctuates each year. The remainder of the 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 including Riverside Village, Tourism Grants issued by the City, and capital projects allocated through SLFRF funding. 9 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 $4,100,000, while total fund balance was $4,730,830. 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 13.34 percent of total General Fund expenditures, while total fund balance represents 14.94 percent of those same expenditures. The total fund balance of the City’s general fund decreased by ($1,005,827) during the current fiscal year. The most significant factor in this net decrease is related to the increase in capital outlay and unexpected expenses to clean up the devastation from Hurricane Helene. During the 2024 budget process, the City decided to purchase capital expenditures outright instead of financing them over five years due to the increase in interest rates. In September of 2024, the City was hit by a category 4 hurricane, which caused major damage city-wide, and these expenses will be reimbursed by FEMA. The ARPA Fund was added as a major fund in 2021 due to the receipt of the first tranche of funding 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 respond to COVID-19 related impacts to including replacement of lost revenue. In 2024, the City was able to complete about 90 percent of the projects these funds were allocated to and plans to finalize the completion of all projects in 2025. The Capital Projects Sales Tax IV Fund had an increase of $2,470,549 related to receiving sales tax revenue from Aiken County for the construction of 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 $8,862,596, an increase of 29.54 percent, due to the City’s operating budget policy that states 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 $98,587 due to the 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 38.82 percent from the prior year due to the decrease in general government expenses incurred in 2024 and the payment of parking revenue that was owed to the City over the past two years. 10 Fund balance for the City’s nonmajor governmental funds totaled $6,542,954 for 2024, an increase of $1,089,442, primarily related to increased hospitality and accommodations taxes received in 2024. 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 $4,916,955. Total increase in unrestricted net position was $375,103. 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, 2024. Current property tax revenues exceeded budget by approximately $207,000 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 $940,000. This reflects 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 large sports tournaments not projected during the preparation of the budget. Miscellaneous revenues exceeded budget by approximately $1,058,000 reflective of receipt of unbudgeted other income items to include sales of City assets. Intergovernmental revenues exceeded budget by approximately $114,000 due to an increase in the state shared revenue. Fines and forfeitures collections were $60,000 more than anticipated; however, this was offset by over expenditure of remittances to the state for fees and fines. The over-expenditures for the General Government and Public Safety were due to the unexpected expenses related to Hurricane Helene cleanup costs and overtime/additional payments to employees working relief efforts. Parks, Recreation, and Tourism over-expenditures were primarily due to the increase of large athletic tournaments. 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, 2024, amounts to $246,859,041 (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 $15.4 million, 6.64 percent. Additional information on the City’s capital assets can be found in Note 5 of this report. 11 City of North Augusta's Capital Assets (net of depreciation)2024 2023 2024 2023 2024 2023 Land 10,330,391$ 10,330,391$ 824,058$ 824,058$ 11,154,449$ 11,154,449$ Land improvements 11,448,361 10,544,511 74,436 77,992 11,522,797 10,622,503 Right-of-way and easements 4,651,327 4,484,537 62,760 62,760 4,714,087 4,547,297 Buildings 83,555,674 85,791,713 18,056,650 19,064,022 101,612,324 104,855,735 Machinery and equipment 1,870,664 1,976,459 1,426,002 1,214,358 3,296,666 3,190,817 Furniture and fixtures 221,133 243,737 - - 221,133 243,737 Vehicles 3,888,387 3,485,518 2,804,624 2,029,509 6,693,011 5,515,027 Infrastructure 15,501,757 15,667,002 - - 15,501,757 15,667,002 System improvements - - 63,939,305 60,209,162 63,939,305 60,209,162 PSA capital - - 1,422,625 1,484,776 1,422,625 1,484,776 Construction in progress 24,760,525 13,708,837 1,108,560 296,138 25,869,085 14,004,975 Right-to-use subscrtiptions 560,421 - 351,381 - 911,802 - Total Capital Assets 156,788,640$ 146,232,705$ 90,070,401$ 85,262,775$ 246,859,041$ 231,495,480$ Governmental Activities Business-type Activities Total Major capital asset events during the current fiscal year included the following: • Various projects related to streets, sidewalks, and storm drainage totaling $1,711,650. • Nearly $430,000 of water and sewer capital assets were added by developers and contributed to the City. • Completed construction on Public Safety Headquarters totaling $10,961,722. • Land Improvements including additions to the boat dock, amphitheater, and greenway totaling $1,752,908. • Purchase of various vehicles, machinery, and equipment for all departments totaling $2,781,997. • Water and sewer related infrastructure improvements totaling $4,095,723. Long-term Debt. At the end of the current fiscal year, the City had total bonded debt outstanding of $84,760,000. The City’s debt represents bonds secured solely by specified revenue sources. City of North Augusta's Outstanding Debt 2024 2023 2024 2023 2024 2023 Revenue bonds 65,740,000$ 66,595,000$ 13,804,000$ 14,929,000$ 79,544,000$ 81,524,000$ General obligation bonds 5,216,000 6,914,000 - - 5,216,000 6,914,000 Financed purchases payable 1,252,799 2,021,891 739,819 1,374,020 1,992,618 3,395,911 Total Outstanding Debt 72,208,799$ 75,530,891$ 14,543,819$ 16,303,020$ 86,752,618$ 91,833,911$ Governmental Activities Buisness-type Activities Total The City’s total debt outstanding decreased by ($5,081,293) during the current fiscal year. This net decrease was attributed to scheduled debt service payments during 2024. The City maintains “Aa3” rating from Moody’s Investors Service for the taxable Series 2017B revenue bond reported in governmental activities. The City’s revenue bonds for business type activities were private issues and therefore not rated. The City’s debt coverage ratio decreased to 3.12 in 2024. 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 $1,992,618 in financed purchases payable for equipment and vehicles, along with other long-term liabilities related to compensated absences, net pension liability, and subscription-based information technology arrangements totaled $28,763,725 (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. 12 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 $15,504,221. 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 2024 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 2025 fiscal year budget: • During the past ten years, Aiken County’s unemployment rate has fluctuated from 6.0 percent in 2014, decreasing to 3.2 percent during 2022, and then increasing to 4.2 percent for 2024. • The value of a mill has increased over 72 percent during the past ten years reflective of the growth in the City’s tax digest. The millage rate for the 2024 budget was 77.50 with 3.80 mills dedicated for the Capital Projects Fund. The millage rate included for preparing the 2025 budget remained at 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 3 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 may increase for both residential and commercial water/wastewater customers as costs to provide these services continues to rise. Rates will remain stable for stormwater and sanitation activities. All of these factors were considered in preparing the City’s general fund budget for the 2025 fiscal year. Amounts available for appropriation total $27.25 million, which is an increase of 10.62 percent, over the final prior fiscal year’s budget of $24.63 million. The City’s budgetary balance is expected to remain relatively stable during 2025, with opportunities to bring non-critical projects online. As for the City’s business type activities, we expect future results to remain stable in 2025. Good business practices require these services to charge fees that sufficiently recover costs associated with providing the service. The City continues to maintain a competitive rate structure. Additional information related to the local economy can be found in the transmittal letter of this report. Request for Information The financial report is designed to provide a general overview of the City’s finances for all those with an interest in the government’s finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Finance Department, City of North Augusta, P.O. Box 6400, North Augusta, SC 29861-6400. 13 Primary Government Governmental Business-type Activities Activities Total ASSETS Cash and cash equivalents $ 32,491,393 $ 13,730,839 $ 46,222,232 Taxes receivable 49,587 - 49,587 Accounts receivable, net of allowances 2,202,706 1,937,426 4,140,132 Due from other governments 348,976 - 348,976 Lease receivable 809,067 - 809,067 Inventory - 323,291 323,291 Restricted cash and cash equivalents - 9,680,419 9,680,419 Capital assets: Non-depreciable 39,742,243 1,995,378 41,737,621 Depreciable, net of accumulated depreciation and amortization 117,046,397 88,083,504 205,129,901 Total assets 192,690,369 115,750,857 308,441,226 DEFERRED OUTFLOWS OF RESOURCES Pension 2,867,861 958,553 3,826,414 Total deferred outflows of resources 2,867,861 958,553 3,826,414 LIABILITIES Accounts payable 2,477,156 990,565 3,467,721 Retainage payable 298,282 - 298,282 Accrued liabilities 360,119 11,503 371,622 Unearned revenues 1,007,856 315,127 1,322,983 Accrued interest payable 557,053 - 557,053 Other liabilities 221,235 - 221,235 Payable from restricted resources: Accrued interest payable - 45,142 45,142 Customer deposits - 650,634 650,634 Long-term liabilities: Due within one year 5,727,573 2,629,903 8,357,476 Due in more than one year 69,419,238 13,273,805 82,693,043 Other long-term liabilities due in more than one year: Net pension liability 15,828,204 8,637,620 24,465,824 Total liabilities 95,896,716 26,554,299 122,451,015 DEFERRED INFLOWS OF RESOURCES Pension 1,292,234 482,337 1,774,571 Deferred lease receipts 745,359 - 745,359 Total deferred inflows of resources 2,037,593 482,337 2,519,930 NET POSITION Net investment in capital assets 83,754,381 75,191,616 158,945,997 Restricted for: Victims assistance 134,612 - 134,612 Public safety - fire division 136,213 - 136,213 Operations - Savannah Bluff Lock and Dam - 534,418 534,418 Capital projects 2,319,950 - 2,319,950 Debt service - 9,029,785 9,029,785 Special projects:- - Riverside Village 12,551,988 - 12,551,988 Tourism grants 578,558 - 578,558 SLFRF 1,019,929 - 1,019,929 DOE Settlement 187,605 187,605 Unrestricted (3,059,315) 4,916,955 1,857,640 Total net position $ 97,623,921 $ 89,672,774 $ 187,296,695 CITY OF NORTH AUGUSTA, SOUTH CAROLINA STATEMENT OF NET POSITION DECEMBER 31, 2024 The accompanying notes are an integral part of these financial statements. 14 Program RevenuesOperating CapitalCharges forGrants andGrants and Governmental Business-typeFunctions/ProgramsExpensesServicesContributions Contributions ActivitiesActivitiesTotalPrimary government: Governmental activities: General government $ 9,725,538 $ 8,579,698 $ 9,283,012 $- $ 8,137,172 $- $ 8,137,172 Public safety 13,683,146 1,005,483 102,747 - (12,574,916) - (12,574,916) Public works3,662,018 112,142 102,568 - (3,447,308) - (3,447,308) Parks, recreation and tourism5,329,246 2,365,211 - 255,787 (2,708,248) - (2,708,248) Interest on long-term debt3,240,704 - - - (3,240,704) - (3,240,704) Total governmental activities 35,640,652 12,062,534 9,488,327 255,787 (13,834,004) - (13,834,004) Business-type activities: Water and wastewater11,479,132 12,673,327 23,515 427,378 - 1,645,088 1,645,088 Sanitation4,604,017 4,672,450 - - - 68,433 68,433 Stormwater utility1,070,605 1,057,103 - 729,946 - 716,444 716,444 Savannah Bluff Lock and Dam24,000 - - - - (24,000) (24,000) Total business-type activities 17,177,754 18,402,880 23,515 1,157,324 - 2,405,965 2,405,965 Total primary government $ 52,818,406 $ 30,465,414 $ 9,511,842 $ 1,413,111 (13,834,004) 2,405,965 (11,428,039) General revenues:Ad valorem property taxes15,186,783 - 15,186,783 Capital projects sales tax 15,190,311 - 15,190,311 Local hospitality and accommodation tax 3,227,892 - 3,227,892 Interest earned2,416,575 871,070 3,287,645 Gain on sale of capital assets- 116,625 116,625 Miscellaneous2,055,592 835,193 2,890,785 Transfers(3,517,082) 3,517,082 - Total general revenues and transfers 34,560,071 5,339,970 39,900,041 Change in net position20,726,067 7,745,935 28,472,002 Net position, beginning of year, as previously reported 78,393,939 82,656,523 161,050,462 Adjustment for change in accounting principle (Note 15)(1,496,085) (729,684) (2,225,769) Net position, beginning of year, as adjusted76,897,854 81,926,839 158,824,693 Net position, end of year$ 97,623,921 $ 89,672,774 $ 187,296,695 Net (Expenses) Revenues and Changes in Net PositionPrimary GovernmentCITY OF NORTH AUGUSTA, SOUTH CAROLINASTATEMENT OF ACTIVITIES FOR THE YEAR ENDED DECEMBER 31, 2024The accompanying notes are an integral part of these financial statements. 15 Capital Projects CapitalTax North AugustaNonmajorTotalGeneral Sales Tax IV Projects Increment Public Facilities ARPAGovernmental GovernmentalFund Fund Fund Fund Corporation Fund Fund Funds FundsASSETSCash and cash equivalents 6,644,022$ 632,043$ 8,819,993$ 577,174$ 6,679,661$ 2,186,893$ 6,951,607$ 32,491,393$ Taxes receivable, net of allowances 49,587 - - - - - - 49,587 Accounts receivable252,251 1,791,537 58,883 - 100,035 - - 2,202,706 Intergovernmental receivables 239,407 - 22,000 - - - 87,569 348,976 Lease receivable809,067 - - - - - - 809,067 Total assets 7,994,334 2,423,580 8,900,876 577,174 6,779,696 2,186,893 7,039,176 35,901,729 LIABILITIES Accounts payable 1,842,229 - 16,280 - 4,016 204,083 410,548 2,477,156 Retainage payable - 212,608 - - - - 85,674 298,282 Accrued liabilities 360,119 - - - - - - 360,119 Unearned revenues 44,975 - - - - 962,881 - 1,007,856 Other accrued liabilities 221,235 - - - - - - 221,235 Total liabilities 2,468,558 212,608 16,280 - 4,016 1,166,964 496,222 4,364,648 DEFERRED INFLOWS OF RESOURCES Unavailable revenue - property taxes 49,587 - - - - - - 49,587 Deferred lease receipts 745,359 - - - - - - 745,359 Total deferred inflows of resources 794,946 - - - - - - 794,946 FUND BALANCESRestricted: Capital projects - 2,210,972 - - - - 108,978 2,319,950 Victim's assistance 134,612 - - - - - - 134,612 Public safety - fire division - - - - - - 136,213 136,213 Special projects - - - 577,174 6,775,680 1,019,929 5,965,297 14,338,080 Committed: Capital projects 496,218 - 8,781,855 - - - 323,146 9,601,219 Parks, recreation and tourism - - 12,994 - - - - 12,994 Housing and development - - 89,747 - - - - 89,747 Assigned: Capital projects - - - - - - 9,320 9,320 Unassigned 4,100,000 - - - - - - 4,100,000 Total fund balances4,730,830 2,210,972 8,884,596 577,174 6,775,680 1,019,929 6,542,954 30,742,135 Total liabilities, deferred inflows of resources, and fund balances 7,994,334$ 2,423,580$ 8,900,876$ 577,174$ 6,779,696$ 2,186,893$ 7,039,176$ 35,901,729$ CITY OF NORTH AUGUSTA, SOUTH CAROLINA BALANCE SHEET GOVERNMENTAL FUNDSDECEMBER 31, 2024The accompanying notes are an integral part of these financial statements. 16 Fund balances, end of year 30,742,135$ 156,788,640 49,587 2,867,861 (1,292,234) Compensated absences $ (2,410,834) Installment purchase revenue bonds (70,956,000) Financed purchases payable (1,252,799) Subscription liability payable (527,178) Net pension liability (15,828,204) Total long-term liabilities (90,975,015) (557,053) Net position of governmental activities, end of year 97,623,921$ 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, 2024 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. 17 Capital Projects CapitalTaxNorth AugustaNonmajorTotalGeneral Sales Tax IV Projects Increment Public Facilities ARPAGovernmental GovernmentalFund Fund Fund Fund Corporation Fund Fund Funds FundsRevenues:Ad valorem property taxes 10,666,180$ -$ 546,197$ 3,801,864$ -$ -$ -$ 15,014,241$ Sales taxes - 15,190,311 - - - - - 15,190,311 Local hospitality and accommodations taxes- - - - - - 3,227,892 3,227,892 Licenses and permits 8,579,698 - - - - - - 8,579,698 Intergovernmental 1,860,324 - 255,787 - 192,851 7,295,018 535,065 10,139,045 Charges for services 1,746,187 - - - 786,744 - - 2,532,931 Fines and forfeitures 949,905 - - - - - - 949,905 Interest earnings 309,390 81,917 340,294 23,134 150,650 379,638 1,131,552 2,416,575 Miscellaneous 1,664,978 - 194,179 - - - 3,584 1,862,741 Total revenues 25,776,662 15,272,228 1,336,457 3,824,998 1,130,245 7,674,656 4,898,093 59,913,339 Expenditures:Current: General government 8,016,402 - 101,792 3,206 639,036 - 23,436 8,783,872 Public safety 11,058,293 - - - - 1,645,047 93,793 12,797,133 Public works 1,836,553 - - - - - 348,972 2,185,525 Parks, recreation and tourism 3,696,591 - 19,710 - - - 720,476 4,436,777 Capital outlay1,617,953 11,031,506 1,939,988 - - 552,800 27,212 15,169,459 Debt service:Principal retirement682,118 1,698,000 202,623 - 855,000 - - 3,437,741 Interest50,075 72,173 - - 3,136,076 - - 3,258,324 Total expenditures26,957,985 12,801,679 2,264,113 3,206 4,630,112 2,197,847 1,213,889 50,068,831 Excess (deficiency) of revenues over (under) expenditures(1,181,323) 2,470,549 (927,656) 3,821,792 (3,499,867) 5,476,809 3,684,204 9,844,508 Other financing sources (uses): Issuance of subscription liabilities642,827 - - - - - - 642,827 Transfers in1,439,545 - 3,081,288 - 5,394,755 - 356 9,915,944 Transfers out(1,906,876) - (110,656) (3,723,205) - (5,097,171) (2,595,118) (13,433,026) Total other financing sources (uses), net 175,496 - 2,970,632 (3,723,205) 5,394,755 (5,097,171) (2,594,762) (2,874,255) Net change in fund balances(1,005,827) 2,470,549 2,042,976 98,587 1,894,888 379,638 1,089,442 6,970,253 Fund balances (deficits), beginning of year5,736,657 (259,577) 6,841,620 478,587 4,880,792 640,291 5,453,512 23,771,882 Fund balances, end of year4,730,830$ 2,210,972$ 8,884,596$ 577,174$ 6,775,680$ 1,019,929$ 6,542,954$ 30,742,135$ CITY OF NORTH AUGUSTA, SOUTH CAROLINASTATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS FOR THE YEAR ENDED DECEMBER 31, 2024The accompanying notes are an integral part of these financial statements.18 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, 2024 Net change in fund balances - total governmental funds $ 6,970,253 Capital outlays $ 16,450,217 Depreciation expense (5,894,282) 10,555,935 (29,538) Issuance of subscription liabilities $ (642,827) Repayment of the principal of long-term debt 3,437,741 2,794,914 Compensated absences $ (13,917) Accrued interest on long-term debt 17,620 Net pension liability 430,800 434,503 Change in net position of governmental activities $ 20,726,067 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. 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. 19 Revenues: Ad valorem property taxes $ 10,458,548 $ 10,458,548 $ 10,666,180 $ 207,632 Licenses and permits 7,639,000 7,639,000 8,579,698 940,698 Fines and forfeitures 889,761 889,761 949,905 60,144 Charges for services 1,447,140 1,447,140 1,746,187 299,047 Intergovernmental 1,745,849 1,745,849 1,860,324 114,475 Interest earnings 250,000 250,000 309,390 59,390 Miscellaneous 774,929 774,929 1,664,978 890,049 Total revenues 23,205,227 23,205,227 25,776,662 2,571,435 Expenditures: Current: General government 7,119,407 7,119,407 8,016,402 (896,995) Public safety 10,743,229 10,743,229 11,058,293 (315,064) Public works 1,970,154 1,970,154 1,836,553 133,601 Parks, recreation and tourism 3,367,629 3,367,629 3,696,591 (328,962) Capital outlay 782,345 782,345 1,617,953 (835,608) Debt service: Principal retirement 636,291 636,291 682,118 (45,827) Interest 12,315 12,315 50,075 (37,760) Total expenditures 24,631,370 24,631,370 26,957,985 (2,326,615) Deficiency of revenues under expenditures (1,426,143) (1,426,143) (1,181,323) 244,820 Other financing sources (uses): Issuance of subscription liabilities - - 642,827 642,827 Transfers in 1,426,143 1,426,143 1,439,545 13,402 Transfers out - - (1,906,876) (1,906,876) Total other financing sources, net 1,426,143 1,426,143 175,496 (1,250,647) Net change in fund balances - - (1,005,827) (1,005,827) Fund balances, beginning of year 5,736,657 5,736,657 5,736,657 - Fund balances, end of year $ 5,736,657 $ 5,736,657 $ 4,730,830 $ (1,005,827) Budget Variance with Final BudgetOriginal Final Actual 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, 2024 The accompanying notes are an integral part of these financial statements. 20 Wastewater Sanitation Savannah Bluff System Services Fund Lock and Dam ASSETS CURRENT ASSETS Cash and cash equivalents $ 7,960,272 $ 3,563,908 $ 1,672,241 $ 534,418 $ 13,730,839 Accounts receivable, net of allowances 1,911,557 25,869 - - 1,937,426 Inventory 323,291 - - - 323,291 Restricted cash and cash equivalents 9,680,419 - - - 9,680,419 Total current assets 19,875,539 3,589,777 1,672,241 534,418 25,671,975 NONCURRENT ASSETS Capital assets: Non-depreciable 797,254 1,013,148 184,976 - 1,995,378 Depreciable, net of accumulated depreciation and amortization 73,247,828 4,587,442 10,248,234 - 88,083,504 Total noncurrent assets 74,045,082 5,600,590 10,433,210 - 90,078,882 Total assets 93,920,621 9,190,367 12,105,451 534,418 115,750,857 DEFERRED OUTFLOWS OF RESOURCES Pensions 473,213 411,199 74,141 - 958,553 Total deferred outflows of resources 473,213 411,199 74,141 - 958,553 LIABILITIES CURRENT LIABILITIES Accounts payable 785,606 173,216 31,743 - 990,565 Accrued liabilities - 11,503 - - 11,503 Customer deposits 650,634 - - - 650,634 Compensated absences 502,173 389,594 124,675 - 1,016,442 Unearned revenue 315,127 - - - 315,127 Accrued interest payable 44,679 - 463 - 45,142 Current portion of revenue bonds payable 1,144,000 - - - 1,144,000 Current portion of financed purchases payable 65,410 296,245 29,128 - 390,783 Current portion of subscriptions payable 53,026 20,792 4,860 - 78,678 Total current liabilities 3,560,655 891,350 190,869 - 4,642,874 NONCURRENT LIABILITIES Revenue bonds payable, net of current portion 12,660,000 - - - 12,660,000 Financed purchases payable, net of current portion 59,601 267,599 21,836 - 349,036 Subscriptions payable net of current portion 178,929 69,597 16,243 - 264,769 Net pension liability 4,484,676 3,512,794 640,150 - 8,637,620 Total noncurrent liabilities 17,383,206 3,849,990 678,229 - 21,911,425 Total liabilities 20,943,861 4,741,340 869,098 - 26,554,299 DEFERRED INFLOWS OF RESOURCES Pensions 221,400 209,090 51,847 - 482,337 Total deferred inflows of resources 221,400 209,090 51,847 - 482,337 NET POSITION Net investment in capital assets 59,884,116 4,946,357 10,361,143 - 75,191,616 Restricted for debt service 9,029,785 - - - 9,029,785 Restricted for operations - - - 534,418 534,418 Unrestricted 4,314,672 (295,221) 897,504 - 4,916,955 Total net position $ 73,228,573 $ 4,651,136 $ 11,258,647 $ 534,418 $ 89,672,774 Stormwater Utility Fund CITY OF NORTH AUGUSTA, SOUTH CAROLINA STATEMENT OF NET POSITION PROPRIETARY FUNDS DECEMBER 31, 2024 Enterprise Fund Nonmajor Enterprise Funds Total Water and The accompanying notes are an integral part of these financial statements. 21 Wastewater Sanitation Savannah Bluff System Services Fund Lock and Dam OPERATING REVENUES Charges for services and fees $ 12,673,327 $ 4,482,410 $ 1,057,103 $- $ 18,212,840 Sale of recyclables - 190,040 - - 190,040 Miscellaneous 739,165 66,220 29,808 - 835,193 Total operating revenues 13,412,492 4,738,670 1,086,911 - 19,238,073 OPERATING EXPENSES Finance 730,497 - - - 730,497 Administration 640,689 - - - 640,689 Operations and maintenance 6,253,597 2,977,928 574,493 24,000 9,830,018 Production and treatment 1,801,659 - - - 1,801,659 Material recovery facility - 917,658 - - 917,658 Depreciation and amortization 1,795,327 694,601 495,535 - 2,985,463 Total operating expenses 11,221,769 4,590,187 1,070,028 24,000 16,905,984 Operating income (loss) 2,190,723 148,483 16,883 (24,000) 2,332,089 NONOPERATING REVENUES (EXPENSES) Interest income 660,815 139,486 42,892 27,877 871,070 Gain on sale of property 27,549 89,076 - - 116,625 Interest expense (257,363) (13,830) (577) - (271,770) Intergovernmental 23,515 - - - 23,515 Total nonoperating revenues, net 454,516 214,732 42,315 27,877 739,440 Income before capital contributions and transfers 2,645,239 363,215 59,198 3,877 3,071,529 CAPITAL CONTRIBUTIONS 427,378 - 729,946 - 1,157,324 TRANSFERS Transfers in 20,068,172 1,042,147 2,644 - 21,112,963 Transfers out (17,215,974) (341,004) (38,903) - (17,595,881) Total transfers 2,852,198 701,143 (36,259) - 3,517,082 Change in net position 5,924,815 1,064,358 752,885 3,877 7,745,935 Total net position, beginning of year, as previously reported 67,675,004 3,852,623 10,598,355 530,541 82,656,523 Adjustment for change in accounting principle (Note 15)(371,246) (265,845) (92,593) - (729,684) Total net position, beginning of year, as adjusted 67,303,758 3,586,778 10,505,762 530,541 81,926,839 Total net position, end of year $ 73,228,573 $ 4,651,136 $ 11,258,647 $ 534,418 $ 89,672,774 Utility Fund CITY OF NORTH AUGUSTA, SOUTH CAROLINA FOR THE YEAR ENDED DECEMBER 31, 2024 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. 22 Wastewater Sanitation Savannah Bluff System Services Fund Lock and Dam CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers and users $ 13,135,865 $ 4,742,602 $ 1,086,911 $- $ 18,965,378 Payments to suppliers (6,125,707) (1,593,410) (141,161) (24,000) (7,884,278) Payments to employees (3,330,902) (2,381,174) (475,960) - (6,188,036) Net cash provided by (used in) operating activities 3,679,256 768,018 469,790 (24,000) 4,893,064 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Transfers in 20,068,172 1,042,147 2,644 - 21,112,963 Transfers out (17,215,974) (341,004) (38,903) - (17,595,881) Intergovernmental receipts 23,515 - - - 23,515 Net cash provided by (used in) noncapital financing activities 2,875,713 701,143 (36,259) - 3,540,597 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Purchases of capital assets (4,352,443) (1,802,948) (60,032) - (6,215,423) Proceeds from the sale of capital assets 27,540 89,075 - - 116,615 Principal paid on revenue bonds (1,125,000) - - - (1,125,000) Principal paid on financed purchases (193,235) (411,590) (29,376) - (634,201) Principal paid on subscriptions (50,046) (19,724) (4,615) - (74,385) Interest paid (262,836) (13,830) (308) - (276,974) Net cash used in capital and related financing activities (5,956,020) (2,159,017) (94,331) - (8,209,368) CASH FLOWS FROM INVESTING ACTIVITIES Interest received 660,815 139,486 42,892 27,878 871,071 Net cash provided by investing activities 660,815 139,486 42,892 27,878 871,071 Net change in cash and cash equivalents 1,259,764 (550,370) 382,092 3,878 1,095,364 Cash and cash equivalents, beginning of year 16,380,927 4,114,278 1,290,149 530,540 22,315,894 Cash and cash equivalents, end of year $ 17,640,691 $ 3,563,908 $ 1,672,241 $ 534,418 $ 23,411,258 Classified as: Cash and cash equivalents $ 7,960,272 $ 3,563,908 $ 1,672,241 $ 534,418 $ 13,730,839 Restricted assets, cash 9,680,419 - - - 9,680,419 $ 17,640,691 $ 3,563,908 $ 1,672,241 $ 534,418 $ 23,411,258 (Continued) Utility Fund Enterprise Funds Water and Stormwater Enterprise Fund Total CITY OF NORTH AUGUSTA, SOUTH CAROLINA STATEMENT OF CASH FLOWS PROPRIETARY FUNDS FOR THE YEAR ENDED DECEMBER 31, 2024 Nonmajor The accompanying notes are an integral part of these financial statements. 23 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)$ 2,190,723 $ 148,483 $ 16,883 $ (24,000) $ 2,332,089 Adjustments to reconcile operating income (loss) to net cash provided by (used in) operating activities: Depreciation and amortization 1,795,327 694,601 495,535 - 2,985,463 Changes in assets and liabilities: Decrease (increase) in accounts receivable (276,627) 3,932 - - (272,695) Increase in inventory (76,936) - - - (76,936) Increase in deferred outflows of resources (45,676) (34,863) (11,731) - (92,270) Increase in accounts payable 291,024 74,928 20,031 - 385,983 Decrease in accrued liabilities (123,915) (63,517) (32,234) - (219,666) Increase in customer deposits 21,657 - - - 21,657 Decrease in advances from other funds (23,515) - - - (23,515) Decrease in net pension liability (147,693) (112,714) (37,929) - (298,336) Increase in deferred inflows or resources 74,887 57,168 19,235 - 151,290 Net cash provided by (used in) operating activities $ 3,679,256 $ 768,018 $ 469,790 $ (24,000) $ 4,893,064 SCHEDULE OF NON-CASH CAPITAL AND RELATED FINANCING ACTIVITIES Contributions of capital assets $ 427,378 $- $ 729,946 $- $ 1,157,324 Acquisition of subscription assets 282,001 110,113 25,718 - 417,832 Initiation of subscription liabilities (282,001) (110,113) (25,718) - (417,832) $ 427,378 $- $ 729,946 $- $ 1,157,324 Utility Fund Enterprise Funds Water and PROPRIETARY FUNDS FOR THE YEAR ENDED DECEMBER 31, 2024 Stormwater Nonmajor Enterprise Fund Total CITY OF NORTH AUGUSTA, SOUTH CAROLINA STATEMENT OF CASH FLOWS 24 CITY OF NORTH AUGUSTA, SOUTH CAROLINA NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2024 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. 25 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 and subscription 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. 26 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. 27 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. 28 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 $5,000. Management can also over-expend appropriations, with the City Administrator’s approval, at the line item and department level, as long as the total expenditures or expenses do not exceed appropriations of the functional area. • Formal budgetary integration is employed as a management control device. A budget is legally adopted annually for the General Fund on a basis consistent with U.S. GAAP. • Annual budgets are not adopted for the Special Revenue Funds or the Capital Projects Funds. These funds budget on a project or activity basis instead of an annual operating cycle basis. Budgets for the enterprise funds are legally adopted annually on a basis consistent with U.S. GAAP except that depreciation is not a budgeted item. • Budgeted amounts are as originally adopted or as amended by the City Council or the City Administrator. There were no individual amendments to the original appropriations, which were adopted and consisted of transferring amounts within departmental accounts. No supplemental appropriations were necessary during the year. • The City employs the use of encumbrance accounting during the year. All encumbrances lapse at the end of the year. • Unexpended appropriations lapse at the end of the year except that a whole or part of appropriations provided in the budget for capital or betterment outlays of any department or activity remaining unexpended at the close of the fiscal year is held available for the following year. 29 NOTES TO FINANCIAL STATEMENTS NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) D. Budgets and Budgetary Accounting (Continued) Excess of Expenditures over Appropriations – For the year ended December 31, 2024, expenditures exceeded budget in the General Fund for the following functions: (Over) Under Function Final Budget Actual Budget Current - General Government 7,119,407$ 8,016,402$ (896,995)$ Capital Outlay - General Government 240,845 947,191 (706,346) Total General Government 7,360,252$ 8,963,593$ (1,603,341)$ Current - Public Safety 10,743,229$ 11,058,293$ (315,064)$ Capital Outlay - Public Safety 500,500 640,762 (140,262) Total Public Safety 11,243,729$ 11,699,055$ (455,326)$ Current - Parks, Recreation and Tourism 3,367,629$ 3,696,591$ (328,962)$ Total Parks, Recreation and Tourism 3,367,629$ 3,696,591$ (328,962)$ Debt Service - Principal Retirement 636,291$ 682,118$ (45,827)$ Debt Service - Interest 12,315 50,075 (37,760) Total Debt Service 648,606$ 732,193$ (83,587)$ The over-expenditures for General Government were due to the purchase of Subscription-Based Information and Technology Arrangements (SBITAs) and expenditures on disaster relief efforts. The over- expenditures for Public Safety were due to the purchase of vehicles and expenditures for personnel costs. The over-expenditures for Parks. Recreation, and Tourism were due to the increase of large athletic tournaments. The over-expenditures for Debt Service were due to principal and interest paid on new SBITAs. 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. 30 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) Restricted Assets – Certain resources set aside for the City’s debt repayment (revenue bonds) are classified as restricted assets on the Statement of Net Position because their use is limited by debt agreements. Capital Assets – All purchased capital assets are valued at cost where historical records are available and at an estimated historical cost where no historical records exist. Donated capital assets are valued at their estimated acquisition value on the date received. General infrastructure assets consisting of roadways, storm drainage, sidewalks, etc., constructed, or acquired prior to January 1, 2003, are reported at estimated historical cost using deflated replacement cost. General infrastructure assets constructed or acquired after January 1, 2003, are reported at cost. The City’s policy is to capitalize purchases over $5,000. The costs of normal maintenance and repairs that do not add to the value of assets or materially extend asset lives are not capitalized. Improvements are capitalized and depreciated over the remaining useful lives of the related capital assets, as applicable. Land and construction in progress are not depreciated. Depreciable and right-to-use assets are depreciated and amortized 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 Right-to-use software 5 years Compensated Absences – It is the City’s policy to permit employees to accumulate earned but unused vacation and sick pay benefits. All vacation and sick pay are attributable to past service and the employees will be compensated; therefore, the vacation and sick pay are accrued in the government-wide and proprietary fund financial statements. For governmental activities, compensated absences are generally liquidated by the General Fund and vacation pay is only reported when it is 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. 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) 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. Subscription-Based Information Technology Arrangements (SBITAs) – The City is a party in certain noncancellable SBITAs. The City recognizes a subscription liability and subscription asset in the government-wide financial statements. The City recognizes subscription liabilities with an individual value of $5,000 or more. At the commencement of a SBITA, the City initially measures the subscription liability at the present value of payments expected to be made during the subscription term. Subsequently, the subscription liability is reduced by the principal portion of payments made. The subscription asset is initially measured as the initial amount of the subscription liability, adjusted for subscription payments made at or before the subscription commencement date, plus certain initial direct costs. Subsequently, the subscription asset is amortized on a straight-line basis over its useful life. Key estimates and judgments related to SBITAs include how the City determines (1) the discount rate it uses to discount the expected payments to present value, (2) agreement term, and (3) payments: 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) Subscription-Based Information Technology Arrangements (SBITAs) (Continued) – • The City uses the indirect interest rate charged by the vendor as the discount rate. When the interest rate of the vendor is not provided, the City generally uses its estimated incremental borrowing rate as the discount rate for subscriptions. • The subscription term includes the noncancellable period of the subscription. Subscription payments included in the measurement of the subscription liability are composed of fixed payments and purchase option prices that the City is reasonably certain to exercise. The City monitors changes in circumstances that would require a remeasurement of its subscription and will measure the subscription asset and liability if certain changes occur that are expected to significantly affect the amount of the subscription liability. Subscription assets are reported with other capital assets and subscription liabilities are reported with long-term liabilities on the Statement of Net Position. Long-term Obligations – In the government-wide and proprietary funds' financial statements, long- term debt, and other long-term obligations are reported as liabilities. Bond premiums and discounts are deferred and amortized over the life of the bonds using the effective interest method. Bonds payable are reported net of the applicable premium or discount. Bond issuance costs are expensed as they are incurred. In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as another financing source. Premiums received are reported as other financing sources, while discounts are reported as other financing uses. Issuance costs, whether or not withheld from debt proceeds received, are reported as debt service expenditures. The City implemented Governmental Accounting Standards Board (GASB) Statement No. 88, Certain Disclosures Related to Debt, including Direct Borrowings and Direct Placements in a prior year and, therefore, includes both long-term debt (such as bonds, notes, and loans) and other long-term liabilities (such as compensated absences, leases payable, and claims and judgements) in their debt disclosures. Refer to Note 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 9. 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) Deferred Outflows/Inflows of Resources (Continued) – 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 is 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 balance 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 position represents constraints on resources that are either externally imposed by creditors, grantors, contributors, or laws or regulations of other governments or imposed by law through state statute. Unrestricted – Unrestricted net position represents net position that does not meet the definitions of the other classifications. Fund balance is divided into five classifications based primarily on the extent to which the City is bound to observe constraints imposed upon the use of the resources in the governmental funds. The classifications are as follows: Nonspendable – Fund balances are reported as nonspendable when amounts cannot be expended because they are either (1) not in spendable form or (2) legally or contractually required to be maintained intact. Restricted – Fund balances are reported as restricted when there are restrictions imposed on their use either through enabling legislation adopted by the City or through external restrictions imposed by creditors, grantors, contributors, or laws or regulations of other governments or imposed by law through state statute. 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/Net Position (Continued) – Committed – Fund balances are reported as committed when they can be used only for a specific purpose pursuant to constraints imposed at the highest level of decision-making authority. The City Council is the highest level of decision-making authority. The City Council can establish, modify, or rescind a fund balance commitment through adoption of a resolution. Assigned – Fund balances are reported as assigned when amounts are constrained by the City Council’s intent to be used for specific purposes but are neither restricted nor committed. The City Administrator, who is appointed by and serves at the pleasure of the City Council, has the authority to assign fund balance amounts and does not require formal action to impose, modify, or remove any fund balance assignment. Unassigned –- Fund balances are reported as unassigned as the remaining amount when the balances do not meet any of the other classifications. The City reports positive fund balance in the general fund only, if applicable. Negative unassigned balances may be reported in all governmental funds. Flow Assumptions – When both restricted and unrestricted amounts of fund balances are available for use for expenditures incurred, the City’s policy is to use restricted amounts first and then unrestricted amounts as they are needed. For unrestricted amounts of fund balance, the City’s policy is to use fund balances in the following order: committed, assigned, unassigned. Minimum Fund Balance – City Council has adopted an ordinance under which a minimum unassigned fund balance policy has been established at each fiscal year-end for certain funds, as follows: General Fund: 15% of the then current general fund budget to the nearest $25,000. Stormwater Utility Fund: 20% of the then current stormwater utility fund budget to the nearest $25,000. Sanitation Services Fund: 20% of the then current sanitation services fund budget to the nearest $25,000. Street Improvements Fund: $100,000. Water and Sewer Fund: 20% of the then current water and sewer fund budget to the nearest $25,000. 35 NOTES TO FINANCIAL STATEMENTS NOTE 2. CASH AND CASH EQUIVALENTS AND DEPOSITS As of December 31, 2024, the City’s cash and cash equivalents consisted of the following: Statement of Net Position: Cash $ 46,222,232 Restricted cash 9,680,419 $ 55,902,651 Cash deposited with financial institutions $ 19,461,961 South Carolina Local Governmental Investment Pool 36,440,690 $ 55,902,651 Credit Risk – The City has an investment policy that all investments made by the City will be selected and properly secured in accordance with State law. Section 6-5-10 of the State of South Carolina Code of Laws authorizes local governments to make the following types of investments: • Obligations of the United States and agencies thereof; • General obligations of the state of South Carolina or any of its political units; • Savings and Loan Associations to the extent that the same are insured by an agency of the federal government; • Repurchase agreements when collateralized by securities as set forth in this section; • Certificates of deposit where the certificates are collaterally secured by securities of the type described above held by a third party as escrow agent or custodian, of a 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. 36 NOTES TO FINANCIAL STATEMENTS NOTE 2. CASH AND CASH EQUIVALENTS AND DEPOSITS (CONTINUED) Credit Risk (Continued) Section 6-6-20 of the State of South Carolina Code of Laws authorizes the State Treasurer’s Office to invest and reinvest the monies of the State Treasurer’s Investment Pool in the investments identified in Section 6-5-10 shown above and identified in Section 11-9-660 as follows: • Obligations of the United States, its agencies, and instrumentalities; • Obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development, the African Development Bank, and the Asian Development Bank; • Obligations of a corporation, state, or political subdivision denominated in United States dollars, if the obligations bear an investment-grade rating of at least two nationally recognized rating services; • Certificates of deposit, if the certificates are secured collaterally by securities of the types described in items 1 and 3 of this section and held by a third party as escrow agent or custodian and are of a 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. 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, 2024, the underlying security ratings of the City’s investment in the LGIP are not separately rated, however, additional information related to these deposits may be obtained from the LGIP’s complete financial statements. These financial statements may be obtained by writing to the following address: Office of the State Treasurer Local Government Investment Pool Post Office Box 11778 Columbia, South Carolina 29211 37 NOTES TO FINANCIAL STATEMENTS NOTE 2. CASH AND CASH EQUIVALENTS AND DEPOSITS (CONTINUED) Interest Rate Risk – The City’s formal investment policy does not limit investment maturities as a means of managing its exposure to fair value losses arising from increasing interest rates. The City does not consider itself to be at risk due to interest rates as all investments currently mature daily. Concentration Credit Risk – The City’s formal investment policy does not place a limit on the amount the City may invest in any one issuer. The City’s investments held in the State Treasurer’s Investment Pool comprise 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, 2024, the carrying amount of the City’s deposits was $19,461,961 and the bank balance was $21,237,426. The entire bank balance was covered by federal depository insurance or by collateral held by the City’s agent in the City’s name. NOTE 3. FAIR VALUE MEASUREMENTS The City follows the Fair Value Measurements topic of GASB, which requires fair value measurement be classified and disclosed in one of the following three Fair Value Hierarchy categories: Level 1 Quoted prices are available in active markets for identical investments as of the reporting date. The types of investments which would generally be included in Level 1 include listed equity securities, mutual funds, and money market funds. Level 2 Pricing inputs are observable for the investments, either directly or indirectly, as of the reporting date, but are not the same as those used in Level 1; inputs include comparable market transactions, pricing of similar instruments, values reported by the administrator, and pricing expectations based on internal modeling. Fair value is determined through the use of models or other valuation methodologies. The types of investments which would generally be included in this category include publicly traded securities with restrictions on disposition, corporate obligations, and U.S. Government and Agency Treasury Inflation Indices. Level 3 Pricing inputs are unobservable for the investment and include situations where there is little, if any, market activity for the investments. The types of investments which would generally be included in this category include debt and equity securities issued by private entities and partnerships. The inputs into the determination of fair value require significant judgment or estimation. Inputs include recent transactions, earnings forecasts, market multiples, and future cash flows. 38 NOTES TO FINANCIAL STATEMENTS NOTE 3. FAIR VALUE MEASUREMENTS (CONTINUED) The City’s recurring fair value measurements as of December 31, 2024, for its $36,440,690 investment in the LGIP are valued at the net asset value and is thus not reported in the fair value hierarchy. Fair value of the LGIP’s investments is determined on a recurring basis based upon quoted market prices. The fair value of the pool is allocated to its local governments with invested funds on an equal basis for each share owned, which are purchased at a cost of $1. NOTE 4. RECEIVABLES Receivables as of December 31, 2024, including the applicable allowances for uncollectible accounts, are as follows: Fund Receivables: Taxes $ 318,650 $ - $ - $- $- $- $- Accounts 252,251 1,791,537 58,883 100,035 - 1,957,557 25,869 Intergovernmental 239,407 - 22,000 - 87,569 - - Leases 809,067 - - - - - - - Gross recievables 1,619,375 1,791,537 80,883 100,035 87,569 1,957,557 25,869 Less allowance for uncollectibles: Taxes (269,063) - - - - - - Accounts - - - - - (46,000) - Total allowance (269,063) - - - - (46,000) - Net receivables $ 1,350,312 $ 1,791,537 $ 80,883 $ 100,035 $ 87,569 $ 1,911,557 $ 25,869 Enterprise Funds Nonmajor Water and Services SanitationGeneralWastewater System Public FacilitiesProjects Fund North Augusta Corporation Governmental Funds Governmental Funds Capital Capital Projects Sales Tax IV Fund The schedule of lease receipts as of December 31, 2024, is as follows: Year ending December 31, Principal Interest Total 2025 $ 83,488 $ 10,511 $ 93,999 2026 89,787 9,855 99,642 2027 97,510 8,155 105,665 2028 70,946 6,982 77,928 2029 77,711 6,061 83,772 2030-2033 389,625 13,183 402,808 Total $ 809,067 $ 54,747 $ 863,814 Governmental Activities 39 NOTES TO FINANCIAL STATEMENTS NOTE 5. CAPITAL ASSETS Capital asset activity for the governmental activities for the year ended December 31, 2024, 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 13,708,837 11,051,688 - - 24,760,525 Right-of-way 4,484,537 166,790 - - 4,651,327 Total 28,523,765 11,218,478 - - 39,742,243 Capital assets, being depreciated/amortized: Land improvements 23,824,407 1,752,908 - - 25,577,315 Buildings 110,528,482 435,836 - - 110,964,318 Machinery and equipment 4,562,308 267,777 (9,363) - 4,820,722 Furniture and fixtures 1,792,435 19,273 - - 1,811,708 Vehicles 9,986,622 1,116,630 (67,946) 22,613 11,057,919 Infrastructure 34,135,145 938,789 - - 35,073,934 Right-to-use subscriptions - 700,526 - - 700,526 Total 184,829,399 5,231,739 (77,309) 22,613 190,006,442 Less accumulated depreciation/amortization for: Land improvements (13,279,896) (849,058) - - (14,128,954) Buildings (24,736,769) (2,671,875) - - (27,408,644) Machinery and equipment (2,585,849) (373,572) 9,363 - (2,950,058) Furniture and fixtures (1,548,698) (41,877) - - (1,590,575) Vehicles (6,501,104) (713,761) 67,946 (22,613) (7,169,532) Infrastructure (18,468,143) (1,104,034) - - (19,572,177) Right-to-use subscriptions - (140,105) - - (140,105) Total (67,120,459) (5,894,282) 77,309 (22,613) (72,960,045) Total capital assets, being depreciated/amortized, net 117,708,940 (662,543) - - 117,046,397 Governmental activities capital assets, net $ 146,232,705 $ 10,555,935 $- $- $ 156,788,640 40 NOTES TO FINANCIAL STATEMENTS NOTE 5. CAPITAL ASSETS (CONTINUED) Capital asset activity for the business-type activities for the year ended December 31, 2024, 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 296,138 812,422 - - 1,108,560 Easements 62,760 - - - 62,760 Total 1,182,956 812,422 - - 1,995,378 Capital assets, being depreciated/amortized: Land improvements 88,650 - - - 88,650 Buildings 24,494,096 - - (339,757) 24,154,339 Machinery and equipment 3,386,105 73,007 (55,679) 339,757 3,743,190 Vehicles 5,626,532 1,305,310 (419,114) (22,613) 6,490,115 System improvements 83,982,133 5,160,624 - - 89,142,757 PSA Capital 4,667,405 - - - 4,667,405 Service rights 100,000 - - - 100,000 Right-to-use subscriptions - 439,226 - - 439,226 Total 122,344,921 6,978,167 (474,793) (22,613) 128,825,682 Less accumulated depreciation/amortization for: Land improvements (10,658) (3,556) - - (14,214) Buildings (5,430,074) (667,615) - - (6,097,689) Machinery and equipment (2,171,747) (201,120) 55,679 - (2,317,188) Vehicles (3,597,023) (530,195) 419,114 22,613 (3,685,491) System improvements (23,772,971) (1,430,481) - - (25,203,452) PSA Capital (3,182,629) (62,151) - - (3,244,780) Service rights (89,019) (2,500) - - (91,519) Right-to-use subscriptions - (87,845) - - (87,845) Total (38,254,121) (2,985,463) 474,793 22,613 (40,742,178) Total capital assets, being depreciated/amortized, net 84,090,800 3,992,704 - - 88,083,504 Business-type activities capital assets, net $ 85,273,756 $ 4,805,126 $- $- $ 90,078,882 Included in current year additions are contributed systems in the amount of $427,378 for the water and wastewater system and $729,946 for the stormwater utility. 41 NOTES TO FINANCIAL STATEMENTS NOTE 5. CAPITAL ASSETS (CONTINUED) Depreciation and amortization expense was charged to functions/programs of the primary government as follows: General government $ 2,393,914 Public safety 1,086,335 Public works 1,480,550 Parks, recreation and tourism 933,483 Total depreciation and amortization expense - governmental activities $ 5,894,282 Governmental activities Water and Wastewater System $ 1,795,327 Sanitation Services 694,601 Stormwater Utility 495,535 Total depreciation and amortization expense - business-type activities $ 2,985,463 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, 2024, was as follows: Beginning Ending Due within Balance Additions Reductions Balance One Year Governmental activities Revenue bonds: North Augusta Public Facility Corporation bonds $ 66,595,000 $- $ (855,000) $ 65,740,000 $ 980,000 General obligation bonds 6,914,000 - (1,698,000) 5,216,000 1,718,000 Financed purchases payable 2,021,891 - (769,092) 1,252,799 681,110 Compensated absences 2,396,917 810,526 (796,609) 2,410,834 2,226,842 Subscriptions payable - 642,827 (115,649) 527,178 121,621 Net pension liability 15,866,043 2,009,971 (2,047,810) 15,828,204 - Total long-term liabilities $ 93,793,851 $ 3,463,324 $ (6,282,160) $ 90,975,015 $ 5,727,573 (Restated) Beginning balances in the above table were restated as a result of the implementation of GASB Statement No. 101, Compensated Absences. 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. Subscriptions payable are liquidated by the General Fund. 42 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, 2024, 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 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 1,620,000 2,925,204 4,545,204 2030 - 2034 10,730,000 13,498,251 24,228,251 2035 - 2039 11,245,000 10,992,937 22,237,937 2040 - 2044 17,390,000 7,689,812 25,079,812 2045 - 2048 19,805,000 2,573,043 22,378,043 Total $ 65,740,000 $ 49,878,688 $ 115,618,688 2017B Revenue Bonds 43 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, 2024, 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 does 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 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 $ 5,216,000 $ 93,593 $ 5,309,593 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 2025 $ 681,110 $ 27,938 $ 709,048 2026 418,013 16,099 434,112 2027 153,676 6,655 160,331 Total $ 1,252,799 $ 50,692 $ 1,303,491 Governmental Activities 44 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, 2024, was as follows: Beginning Ending Due within Balance Additions Reductions Balance One Year Business-type activities Revenue bonds payable $ 14,929,000 $- $ (1,125,000) $ 13,804,000 $ 1,144,000 Financed purchases payable 1,374,020 - (634,201) 739,819 390,783 Compensated absences 1,099,639 361,117 (444,314) 1,016,442 1,016,442 Subscriptions payable - 417,832 (74,385) 343,447 78,678 Net pension liability 8,935,956 1,612,904 (1,911,240) 8,637,620 - Total long-term liabilities $ 26,338,615 $ 2,391,853 $ (4,189,140) $ 24,541,328 $ 2,629,903 (Restated) Beginning balances in the above table were restated as a result of the implementation of GASB Statement No. 101, Compensated Absences. 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, 2024, 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 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 1,230,000 152,748 1,382,748 2030 - 2034 6,495,000 420,291 6,915,291 2035 - 2036 1,376,000 23,184 1,399,184 Total $ 13,804,000 $ 1,422,720 $ 15,226,720 2021 Refunding 45 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 2024 totaled $1,383,597. Total net charges for services for the year were $13,412,492. 46 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 2025 $ 65,410 $ 1,140 $ 66,550 2026 29,285 232 29,517 2027 30,316 1,066 31,382 Total $ 125,011 $ 2,438 $ 127,449 Water and Wastewater Year ending December 31, Principal Interest Total 2025 $ 296,245 $ 18,156 $ 314,401 2026 143,556 11,039 154,595 2027 124,043 4,360 128,403 Total $ 563,844 $ 33,555 $ 597,399 Sanitation Services Year ending December 31, Principal Interest Total 2025 $ 29,128 $555 $ 29,683 2026 21,836 148 21,984 Total $ 50,964 $703 $ 51,667 Stormwater Utility 47 NOTES TO FINANCIAL STATEMENTS NOTE 7. SUBSCRIPTION-BASED INFORMATION TECHNOLOGY ARRANGEMENTS The City has entered into multiple noncancelable SBITAs as the lessee for various subscription assets. The incremental borrowing rate is 2%. As of December 31, 2024, the City has $527,178 and $343,447 outstanding in SBITAs payable related to governmental and business-type activities, respectively. The annual requirements to amortize all SBITAs payable as of December 31, 2024, including interest payments, for the City’s governmental activities are as follows: Year ending December 31, Principal Interest Total 2025 $ 121,621 $ 10,263 $ 131,884 2026 128,176 7,825 136,001 2027 135,068 5,255 140,323 2028 142,313 2,548 144,861 Total $ 527,178 $ 25,891 $ 553,069 The annual requirements to amortize all SBITAs payable as of December 31, 2024, including interest payments, for the City’s business-type activities are as follows: Year ending December 31, Principal Interest Total 2025 $ 78,678 $ 6,765 $ 85,443 2026 83,302 5,189 88,491 2027 88,170 3,521 91,691 2028 93,297 1,755 95,052 Total $ 343,447 $ 17,230 $ 360,677 Subscription asset activity for the City’s governmental activities for the year ended December 31, 2024, was as follows: Governmental activities: Subscription Assets $- $ 700,526 $- $ 700,526 Less accumulated amortization:- (140,105) - (140,105) Governmental activities total subscription assets, net $- $ 560,421 $- $ 560,421 Balance Ending DeductionsAdditions Beginning Balance 48 NOTES TO FINANCIAL STATEMENTS NOTE 7. SUBSCRIPTION-BASED INFORMATION TECHNOLOGY ARRANGEMENTS (CONTINUED) Subscription asset activity for the City’s business-type activities for the year ended December 31, 2024, was as follows: Business-type activities: Subscription Assets $- $ 439,226 $- $ 439,226 Less accumulated amortization:- (87,845) - (87,845) Governmental activities total subscription assets, net $- $ 351,381 $- $ 351,381 Beginning Balance Additions Deductions Ending Balance NOTE 8. PROPERTY TAXES Taxes on real property and merchants’ inventory are levied on January 1 of each year and are based on ownership of such property and inventory as of January 1 of the preceding year. These taxes are billed and payable between January 1 and May 1 of the year in which they are levied. As of May 1, property taxes attach as an enforceable lien on property. The City bills and collects its own real and merchants’ ad valorem taxes. Taxes on personal property are levied and billed in the month prior to the renewal of the annual vehicle registration through the State Highway Department and are payable prior to the registration and tag purchase. Ad valorem taxes on personal property (vehicles) are billed and collected by the County Treasurer and remitted to the City on a monthly basis. City property tax revenues are recognized in the year for which taxes have been levied and are collectible either during that year or within 60 days following year-end. 49 NOTES TO FINANCIAL STATEMENTS NOTE 9. DEFINED BENEFIT PENSION PLAN Overview: The South Carolina Public Employee Benefit Authority (PEBA), created July 1, 2012, is the state agency responsible for the administration and management of the various Retirement Systems and retirement programs of the state of South Carolina, including the State Optional Retirement Program and the S.C. Deferred Compensation Program, as well as the state’s employee insurance programs. As such, PEBA is responsible for administering the South Carolina Retirement Systems’ five defined benefit pension plans. PEBA has an 11‐member Board of Directors, appointed by the Governor and General Assembly leadership, which serves as custodian, co‐trustee and co‐fiduciary of the Systems and the assets of the retirement trust funds. The Retirement System Investment Commission (Commission as the governing body, RSIC as the agency), created by the General Assembly in 2005, has exclusive authority to invest and manage the retirement trust funds’ assets. The Commission, an eight‐member board, serves as co‐trustee and co‐fiduciary for the assets of the retirement trust funds. By law, the State Fiscal Accountability Authority (SFAA), which consists of five elected officials, also reviews certain PEBA Board decisions regarding the actuary of the Systems. For purposes of measuring the net pension liability, deferred outflows and inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the Systems and additions to/deductions from the Systems fiduciary net position have been determined on the accrual basis of accounting as they are reported by the Systems in accordance with generally accepted accounting principles (GAAP). For this purpose, revenues are recognized when earned and expenses are recognized when incurred. Benefit and refund expenses are recognized when due and payable in accordance with the terms of the plan. Investments are reported at fair value. 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. 50 NOTES TO FINANCIAL STATEMENTS NOTE 9. DEFINED BENEFIT PENSION PLAN (CONTINUED) Plan Description (Continued): In addition to the SCRS pension plan, the City has also contributed to the South Carolina Police Officers Retirement System (PORS), a cost–sharing multiple-employer defined benefit pension plan that was established July 1, 1962, pursuant to the provisions of Section 9-11-20 of the South Carolina Code of Laws for the purpose of providing retirement and other benefits to police officers and firefighters. PORS also covers peace officers, coroners, probate judges and magistrates. Membership: Membership requirements are prescribed in Title 9 of the South Carolina Code of Laws. A brief summary of the requirements under each system is described as follows. SCRS - Generally, all employees of covered employers are required to participate in and contribute to the SCRS as a condition of employment. This plan covers general employees, teachers and individuals newly elected to the South Carolina General Assembly beginning with the November 2012 general election. An employee member of the system with an effective date of membership prior to July 1, 2012, is a Class Two member. An employee member of the system with an effective date of membership on or after July 1, 2012, is a Class Three member. PORS - To be eligible for PORS membership, an employee must be required by the terms of his employment, by election or appointment, to preserve public order, protect life and property, and detect crimes in the state; to prevent and control property destruction by fire; or to serve as a peace officer employed by the Department of Corrections, the Department of Juvenile Justice, or the Department of Mental Health. Probate judges and coroners may elect membership in PORS. Magistrates are required to participate in PORS for service as a magistrate. PORS members, other than magistrates and probate judges, must also earn at least $2,000 per year and devote at least 1,600 hours per year to this work, unless exempted by statute. An employee member of the system with an effective date of membership prior to July 1, 2012, is a Class Two member. An employee member of the system with an effective date of membership on or after July 1, 2012, is a Class Three member. Benefits: Benefit terms are prescribed in Title 9 of the South Carolina Code of Laws. PEBA does not have the authority to establish or amend benefit terms without a legislative change in the code of laws. Key elements of the benefit calculation include the benefit multiplier, years of service, and average final compensation. A brief summary of the benefit terms for each system is presented below. 51 NOTES TO FINANCIAL STATEMENTS NOTE 9. DEFINED BENEFIT PENSION PLAN (CONTINUED) Benefits (Continued): SCRS - A Class Two member who has separated from service with at least five or more years of earned service is eligible for a monthly pension at age 65 or with 28 years credited service regardless of age. A member may elect early retirement with reduced pension benefits payable at age 55 with 25 years of service credit. A Class Three member who has separated from service with at least eight or more years of earned service is eligible for a monthly pension upon satisfying the Rule of 90 requirement that the total of the member’s age and the member’s creditable service equals at least 90 years. Both Class Two and Class Three members are eligible to receive a reduced deferred annuity at age 60 if they satisfy the five- or eight-year earned service requirement, respectively. An incidental death benefit is also available to beneficiaries of active or retired members of employees who participate in the death benefit program. The annual retirement allowance of eligible retirees or their surviving annuitants is increased by the lesser of 1% or $500 every July 1. Only those annuitants in receipt of a benefit on July 1 of the preceding year are eligible to receive the increase. Members who retire under the early retirement provisions at age 55 with 25 years of service are not eligible for the benefit adjustment until the second July 1 after reaching age 60 or the second July 1 after the date they would have had 28 years of service credit had they not retired. PORS - A Class Two member who has separated from service with at least five or more years of earned service is eligible for a monthly pension at age 55 or with 25 years of service regardless of age. A Class Three member who has separated from service with at least eight or more years of earned service is eligible for a monthly pension at age 55 or with 27 years of service regardless of age. Both Class Two and Class Three members are eligible to receive a deferred annuity at age 55 with five or eight years of earned service, respectively. An incidental death benefit is also available to beneficiaries of active and retired members of employers who participate in the death benefit program. Accidental death benefits are also provided upon the death of an active member working for a covered employer whose death was a natural and proximate result of an injury incurred while in the performance of duty. The retirement allowance of eligible retirees or their surviving annuitants is increased by the lesser of 1% or $500 every July 1. Only those annuitants in receipt of a benefit on July 1 of the preceding year are eligible to receive the increase. 52 NOTES TO FINANCIAL STATEMENTS NOTE 9. DEFINED BENEFIT PENSION PLAN (CONTINUED) Contributions: Actuarial valuations are performed annually by an external consulting actuary to ensure applicable contribution rates satisfy the funding parameters specified in Title 9 of the South Carolina Code of Laws. Under these provisions, SCRS and PORS contribution requirements must be sufficient to maintain an amortization period for the financing of the unfunded actuarial accrued liability (UAAL) over a period that does not exceed the number of years scheduled in state statute. 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, 2024, the City contributed $1,881,752 and $1,179,581, to the SCRS and PORS plans, respectively. Required employee contribution rates for the year ended December 31, 2024, 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, 2024, are as follows: South Carolina Retirement System 18.41% of earnable compensation from January 1st through December 31st Employer incidental death benefit: 0.15% of earnable compensation South Carolina Police Officers Retirement System 21.04% of earnable compensation from January 1st through December 31st Employer incidental death benefit: 0.20% of earnable compensation 53 NOTES TO FINANCIAL STATEMENTS NOTE 9. DEFINED BENEFIT PENSION PLAN (CONTINUED) Net Pension Liability: The June 30, 2024, (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, 2023 actuarial valuation. The total pension liability was rolled-forward from the valuation date to the plan’s fiscal year ended June 30, 2024, 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, 2024, (measurement date of June 30, 2024), 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 61,369,806,968$ 37,919,492,371$ 23,450,314,597$ 61.8% 0.069808% PORS 10,177,904,231$ 7,178,118,865$ 2,999,785,366$ 70.5% 0.269873% 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. The GASB Statement No. 67 valuation report prepared as of June 30, 2024, is based on the experience study report for the period ending June 30, 2019. A more recent experience report on the Systems was issued for the period ending June 30, 2023, and will be used for future valuations. The June 30, 2024, 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, 2023. The total pension liability was rolled‐forward from the valuation date to the plans’ fiscal year end, June 30, 2024, using generally accepted actuarial principles. There was no legislation enacted during the 2024 legislative session that had a material change in the benefit provisions for any of the systems. 54 NOTES TO FINANCIAL STATEMENTS NOTE 9. DEFINED BENEFIT PENSION PLAN (CONTINUED) Actuarial Assumptions and Methods (Continued): The following table provides a summary of the actuarial assumptions and methods used in the July 1, 2023, 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 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 2024 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. 55 NOTES TO FINANCIAL STATEMENTS NOTE 9. DEFINED BENEFIT PENSION PLAN (CONTINUED) Long-term Expected Rate of Return (Continued): For actuarial purposes, the 7 percent assumed annual investment rate of return used in the calculation of the TPL includes a 4.75 percent real rate of return and a 2.25 percent inflation component, which is summarized below. Expected Long-term Arithmetic Real Expected Portfolio Allocation/Exposure Policy Target Rate of Return Real Rate of Return Public Equity 46.0%6.23%2.86% Bonds 26.0%2.60%0.68% Private Equity 9.0%9.60%0.86% Private Debt 7.0%6.90%0.48% Real Assets 12.0% Real Estate 9.0%4.30%0.39% Infrastructure 3.0%7.30%0.22% 100.0% Total expected real return 5.49% Inflation for actuarial purposes 2.25% Total expected nominal return 7.74% 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. 56 NOTES TO FINANCIAL STATEMENTS NOTE 9. DEFINED BENEFIT PENSION PLAN (CONTINUED) Sensitivity Analysis: The following table presents the collective NPL of the participating employers calculated using the discount rate of 7 percent, as well as what the employers’ NPL would be if it were calculated using a discount rate that is 1 percent lower (6 percent) or 1 percent higher (8 percent) than the current rate. Sensitivity of the Net Position Liability to Changes in the Discount Rate Current Discount Rate (7%) SCRS $ 21,213,958 $ 16,370,222 $ 11,909,525 PORS $ 11,728,976 $ 8,095,602 $ 5,119,679 (8%)(6%) 1% Decrease 1% Increase Deferred Outflows and Inflows of Resources Related to Pensions: At December 31, 2024, 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 $ 537,983 $ 20,316 Changes of assumptions 288,604 - Net difference between projected and actual earnings on pension plan investments - 630,750 Changes in proportionate share and differences between employer contributions and proportionate share of total plan employer contributions 33,707 387,704 Employer contributions subsequent to the measurement date 961,493 - Total $ 1,821,787 $ 1,038,770 Deferred Deferred Outflows of Inflows of Resources Resources 57 NOTES TO FINANCIAL STATEMENTS NOTE 9. DEFINED BENEFIT PENSION PLAN (CONTINUED) Deferred Outflows and Inflows of Resources Related to Pensions (Continued): PORS Differences between expected and actual experience $ 760,282 $ 46,413 Changes of assumptions 176,255 - Net difference between projected and actual earnings on pension plan investments - 453,871 Changes in proportionate share and differences between employer contributions and proportionate share of total plan employer contributions 460,661 235,517 Employer contributions subsequent to the measurement date 607,429 - Total $ 2,004,627 $ 735,801 Deferred Deferred Outflows of Inflows of Resources Resources City contributions subsequent to the measurement date of $961,493 and $607,429 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, 2025. 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 2025 $ (522,142) $ 86,079 2026 554,933 546,612 2027 (45,625) 148,708 2028 (165,642) (120,002) 58 NOTES TO FINANCIAL STATEMENTS NOTE 9. DEFINED BENEFIT PENSION PLAN (CONTINUED) Pension Expense: For the year ended December 31, 2024 (measurement period ended June 30, 2024), the City recognized its proportionate share of collective pension expense of $1,580,058 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 ($235,829) for a total of $1,344,229 for the SCRS plan. Additionally, for the year ended December 31, 2024 (measurement period ended June 30, 2024), the City recognized its proportionate share of collective pension expense of $1,027,562 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 $74,477 for a total of $1,102,039 for the PORS plan. Total pension expense for both the SCRS plan and the PORS plan amounted to $2,446,268. NOTE 10. INTERFUND TRANSFERS The following interfund transfers are reflected in the fund financial statements at December 31, 2024: Governmental Funds General Fund $ 1,439,545 $ 1,906,876 Capital Projects Fund 3,081,288 110,656 Tax Increment Fund - 3,723,205 North Augusta Public Facilities Corporation 5,394,755 - ARPA Fund - 5,097,171 Nonmajor Funds 356 2,595,118 Total Governmental Funds 9,915,944 13,433,026 Enterprise Funds Water and Wastewater System Fund 20,068,172 17,215,974 Sanitation Services Fund 1,042,147 341,004 Stormwater Utility Fund 2,644 38,903 Total Enterprise Funds 21,112,963 17,595,881 Total Transfers $ 31,028,907 $ 31,028,907 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. Interfund transfers also include transfers of revenues collected in the Special Revenue funds to make debt service payments in the North Augusta Public Facility Corporation Fund. Interfund transfers out of the ARPA Fund includes transfers related to projects obligated for use and reimbursed with ARPA funds but paid out of other funds. 59 NOTES TO FINANCIAL STATEMENTS NOTE 11. RISK MANAGEMENT The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. The City has joined together with other municipalities in the state to form the South Carolina Municipal Insurance and Risk Financing Fund (SCMIRF), which is a public entity risk pool currently operating as common risk management and insurance programs. The City pays a bi-annual premium to SCMIRF for its general insurance. The SCMIRF is self-sustaining through member premiums and will reinsure through commercial companies. The City also has joined together with other municipalities in the state to form the South Carolina Municipal Insurance Trust (SCMIT), a public entity risk pool operating as a common risk management and insurance program for worker’s compensation. The City pays a quarterly premium to SCMIT. The SCMIT is self-sustaining through member premiums and uses reinsurance agreements to reduce its exposure to large workers’ compensation losses. There were no significant reductions in insurance coverage during the year. Settlements have not exceeded insurance coverage for each of the past three years. The City pays monthly premiums to the Public Employee Benefit Authority for its health and dental insurance benefits. NOTE 12. COMMITMENTS Significant commitments at December 31, 2024, are composed of the following: Public Safety Headquarters $ 27,700,000 $ 22,766,474 $ 4,933,526 Southwest Interceptor Pipeline Rehab 3,935,004 942,588 2,992,416 Clay Street Booster Pump Station Upgrade 3,123,632 2,392,659 730,973 Transfer Station 2,000,000 1,752,711 247,289 Project Authorization Expended through December 31, 2024 Commitment The City has entered into an agreement for the future operations and maintenance of the Savannah Bluff Lock and Dam for the purpose of maintaining the Augusta Pool. The agreement is between the City of North Augusta; Aiken County, South Carolina; Augusta, Georgia; and four industrial stakeholders. The agreement is contingent based on future upgrades of the Savannah Bluff Lock and Dam by the Corps of Engineers. The agreement calls for the establishment of an escrow account in the amount of $1,000,000 to be established over a three-year period and funded by the participating entities. The City established a separate enterprise fund, The Savannah Bluff Lock and Dam Fund. The fund established by the City will receive all revenues associated with the project and all direct costs incurred by the contractor or the local sponsors will be paid by the fund. The escrow account balance of $1,000,000 was fully funded as of December 31, 2009. The Savannah Bluff Lock and Dam will be operated within the guidelines established by the Corps of Engineers. The City will not be directly involved in the daily operations of the facility. 60 NOTES TO FINANCIAL STATEMENTS NOTE 12. COMMITMENTS (CONTINUED) The City has $5.3 million in outstanding contracts at December 31, 2024, including $1.6 million and $3.7 million in the Capital Project Sales Tax IV and Water and Wastewater funds, respectively. NOTE 13. CONTINGENCIES The City is a defendant in various lawsuits. In the opinion of the City’s management and the City Attorney, the ultimate effect of these matters will not have a material adverse effect on the financial condition of the City. NOTE 14. TAX ABATEMENTS As of December 31, 2024, the City provides tax abatements under an intergovernmental agreement with Aiken County, South Carolina (the “County”). This agreement is a form of a Fee in Lieu of Tax Program instigated by the County for the purpose of creating multi-county industrial and business parks, pursuant to which certain economic incentives are available to companies locating, improving, or expanding projects within such parks, through which the economic development of the County and the state will be promoted and trade developed by inducing manufacturing and certain other business enterprises to locate in and remain in the State of South Carolina. The Fee in Lieu of Tax (FILOT) is authorized under South Carolina Code of Laws Title 12, Chapter 44, Title 4, Chapter 29, and/or Title 4, Chapter 12. The FILOT is used to encourage investment and provides a reduction of property tax when a business invests a minimum of $2,500,000 within a five to six-year investment period (beginning with the date property is initially placed in service). Property subject to a FILOT agreement is exempt from ad valorem property tax and is instead subject to a FILOT equal to the product of the value of the property, an assessment ratio that is generally no lower than 6% (but may be as low as 4% for extraordinary projects that satisfy the statutory definition of an “enhanced investment”), and a millage rage that is either fixed for the life of the agreement or is adjusted every five years based on the trailing five-year average. The reduction in property taxes is accomplished by a reduction of assessed value, reduction in millage rate and elimination of (or reduction in) number of times millage rates are changed. In addition, an agreement may allow the possible use of net present value method over term of FILOT to equalize payments. Repayment of incentive is required by state law if taxpayer fails to meet statutory minimum investment requirement. Other recapture provisions may be negotiated (such as a pro rata clawback for failure to meet and/or maintain jobs/investment). During the year ended December 31, 2024, the City’s taxes were reduced as a part of the FILOT agreement previously disclosed in the amount of $24,182. 61 NOTES TO FINANCIAL STATEMENTS NOTE 15. CHANGE IN ACCOUNTING PRINCIPLE In conjunction with the implementation of Governmental Accounts Standards Board (GASB) Statement No. 101, Compensated Absences, the City is required to recognize liabilities for compensated absences for (1) leave that has not been used and (2) leave that has been used but not yet paid in cash or settled through noncash means. A liability should be recognized for leave that has not been used if (a) the leave is attributable to services already rendered, (b) the leave accumulates, and (c) the leave is more likely than not to be used for time off or otherwise paid in cash or settled through noncash means. Therefore, in conjunction with the implementation of GASB Statement No. 101, an adjustment to beginning net position in the amount of ($1,496,085) and ($729,684) related to governmental and business-type activities (including the Water and Wastewater System fund, the Sanitation Services fund, and the Stormwater Utility fund), respectively, was required to properly report compensated absences as of January 1, 2024. 62 REQUIRED SUPPLEMENTARY INFORMATION CITY OF NORTH AUGUSTA, SOUTH CAROLINA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY FOR THE YEAR ENDED DECEMBER 31, SOUTH CAROLINA RETIREMENT SYSTEM Plan year ended June 30 City's proportion of the net pension liability City's proportionate share of the net pension liability City's covered payroll City's share of the net pension liability as a percentage of its covered payroll Plan fiduciary net position as a percentage of the total pension liability 2024 0.07% 16,370,222$ 9,592,835$ 170.7% 61.79% 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 2024 0.27% 8,095,602$ 5,064,016$ 159.9% 70.53% 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% 63 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 2024 $ 1,881,752 $ 1,881,752 $ - $ 10,138,749 18.56% 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% 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 2024 $ 1,179,581 $ 1,179,581 $ - $ 5,553,582 21.24% 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% 64 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, 2022 July 1, 2022 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 25 years maximum,25 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. 65 OTHER SUPPLEMENTARY INFORMATION Revenues: Taxes Current $ 10,343,548 $ 10,343,548 $ 10,512,748 $ 169,200 Delinquent 15,000 15,000 9,373 (5,627) Penalties 100,000 100,000 144,059 44,059 Total taxes 10,458,548 10,458,548 10,666,180 207,632 Licenses and permits Business licenses 7,039,000 7,039,000 7,696,188 657,188 Building permits 500,000 500,000 730,488 230,488 Electrical permits 35,000 35,000 35,367 367 Mechanical permits 35,000 35,000 36,806 1,806 Plumbing permits 15,000 15,000 23,754 8,754 Grading permits 15,000 15,000 57,095 42,095 Total licenses and permits 7,639,000 7,639,000 8,579,698 940,698 Intergovernmental State of South Carolina: State shared revenue 689,914 689,914 810,476 120,562 Accommodations tax 36,000 36,000 42,561 6,561 Merchants' inventory tax 54,700 54,700 41,092 (13,608) Local option sales tax 55,000 55,000 57,563 2,563 Law enforcement net grant 10,000 10,000 3,907 (6,093) Department of Justice grant 5,000 5,000 - (5,000) Highway safety grant 95,000 95,000 104,558 9,558 Aiken County FILOT 225,000 225,000 202,080 (22,920) State SRO grant 575,235 575,235 598,087 22,852 Total intergovernmental 1,745,849 1,745,849 1,860,324 114,475 Charges for services Fire protection fees 57,700 57,700 55,578 (2,122) Customer street light fees 114,540 114,540 112,142 (2,398) Municipal Center rentals 47,000 47,000 35,005 (11,995) Recreation fees: Special programs 13,000 13,000 8,553 (4,447) Volleyball 12,160 12,160 17,780 5,620 Soccer 83,540 83,540 85,596 2,056 Miscellaneous 127,000 127,000 145,273 18,273 Basketball 60,920 60,920 72,995 12,075 Softball 42,410 42,410 37,535 (4,875) Football 61,010 61,010 81,126 20,116 Baseball 73,340 73,340 58,704 (14,636) Concession stand 50,000 50,000 104,835 54,835 Community Center fees 82,600 82,600 77,103 (5,497) Activities Center fees 188,420 188,420 199,598 11,178 Recreation facilities rentals 68,000 68,000 51,041 (16,959) Activities Center tournaments 365,500 365,500 603,323 237,823 Total charges for services 1,447,140 1,447,140 1,746,187 299,047 Fines and forfeitures Public safety fines 869,761 869,761 944,210 74,449 Drug related fines 20,000 20,000 5,695 (14,305) Total fines and forfeitures 889,761 889,761 949,905 60,144 Miscellaneous Other 538,829 538,829 1,415,638 876,809 Communication tower rental 236,100 236,100 249,340 13,240 Interest earnings 250,000 250,000 309,390 59,390 Total miscellaneous 1,024,929 1,024,929 1,974,368 949,439 Total revenues $ 23,205,227 $ 23,205,227 $ 25,776,662 $ 2,571,435 (Continued) CITY OF NORTH AUGUSTA, SOUTH CAROLINA GENERAL FUND SCHEDULE OF REVENUES AND EXPENDITURES COMPARED WITH BUDGET FOR THE YEAR ENDED DECEMBER 31, 2024 Original Final Actual Final Budget Budget Variance with 66 Expenditures: General Government City Council Personnel services: Salaries and wages $ 121,156 $ 121,156 $ 120,690 $ 466 Overtime pay FICA 9,269 9,269 8,910 359 Employee retirement 23,093 23,093 19,081 4,012 Employee insurance 28,500 28,500 24,587 3,913 Workers' compensation 3,328 3,328 3,046 282 Operating expenditures: General supplies/postage 7,300 7,300 5,968 1,332 Dues/training/travel 12,500 12,500 5,641 6,859 Advertising 425 425 835 (410) Professional services 100 100 2,258 (2,158) Special department supplies 3,250 3,250 1,694 1,556 Insurance 2,644 2,644 3,295 (651) Contingencies 2,000 2,000 1,931 69 Total city council 213,565 213,565 197,936 15,629 City Administration Personnel services: Salaries and wages 359,036 359,036 322,171 36,865 Overtime pay - - 6,994 (6,994) FICA 27,467 27,467 24,038 3,429 Employee retirement 68,433 68,433 62,242 6,191 Employee insurance 19,000 19,000 16,391 2,609 Workers' compensation 9,848 9,848 9,012 836 Unemployment insurance Operating expenditures: General supplies/postage 2,000 2,000 3,693 (1,693) Dues/training/travel 17,000 17,000 21,424 (4,424) Contracts/repairs 3,500 3,500 5,828 (2,328) Uniforms/clothing - - 32 (32) Professional services 47,500 47,500 38,929 8,571 Insurance 9,678 9,678 12,062 (2,384) Contingencies 50,000 50,000 38,323 11,677 Capital outlay: Disaster relief efforts - - 959,031 (959,031) Total city administration 613,462 613,462 1,520,170 (906,708) Justice and Law Personnel services: Salaries and wages 131,036 131,036 131,361 (325) FICA 10,025 10,025 11,201 (1,176) Employee retirement 24,976 24,976 23,840 1,136 Employee insurance 9,500 9,500 8,196 1,304 Workers' compensation 3,646 3,646 3,337 309 Operating expenditures: General supplies/postage 3,300 3,300 3,796 (496) State fees/fines 479,700 479,700 564,227 (84,527) Dues/training/travel 6,250 6,250 3,795 2,455 Data processing 3,680 3,680 503 3,177 Utility services - - 16,366 (16,366) Contracts/repairs 2,700 2,700 5,154 (2,454) Jury services 3,200 3,200 - 3,200 Professional services 25,520 25,520 22,398 3,122 Juvenile detention 3,000 3,000 75 2,925 Special department supplies - - 1,145 (1,145) Insurance 42,044 42,044 52,400 (10,356) Total justice and law 748,577 748,577 847,794 (99,217) (Continued) Budget Variance with Actual Final BudgetOriginalFinal CITY OF NORTH AUGUSTA, SOUTH CAROLINA GENERAL FUND SCHEDULE OF REVENUES AND EXPENDITURES COMPARED WITH BUDGET FOR THE YEAR ENDED DECEMBER 31, 2024 67 Budget Variance with Actual Final BudgetOriginalFinal CITY OF NORTH AUGUSTA, SOUTH CAROLINA GENERAL FUND SCHEDULE OF REVENUES AND EXPENDITURES COMPARED WITH BUDGET FOR THE YEAR ENDED DECEMBER 31, 2024 Expenditures (Continued): General Government (Continued) Community Promotion Operating expenditures: Contributions $ 30,800 $ 30,800 $ 18,000 $ 12,800 Dues/training/travel 6,113 6,113 6,113 - Professional services - - 700 (700) Special department supplies 20,250 20,250 39,515 (19,265) Insurance 4,175 4,175 5,203 (1,028) Total community promotion 61,338 61,338 69,531 (8,193) Finance Personnel services: Salaries and wages 331,425 331,425 334,129 (2,704) FICA 25,355 25,355 25,557 (202) Employee retirement 63,170 63,170 63,727 (557) Employee insurance 38,000 38,000 32,783 5,217 Workers' compensation 8,788 8,788 8,042 746 Operating expenditures: General supplies/postage 16,000 16,000 13,338 2,662 Dues/training/travel 2,525 2,525 3,422 (897) Data processing 46,500 46,500 53,651 (7,151) Contracts/repairs 22,900 22,900 5,483 17,417 Advertising 1,600 1,600 1,374 226 Professional services 27,478 27,478 41,760 (14,282) Special department supplies 600 600 294 306 Insurance 7,901 7,901 9,847 (1,946) Total finance 592,242 592,242 593,407 (1,165) City Buildings Personnel services: Salaries and wages 82,907 82,907 83,825 (918) FICA 6,343 6,343 6,326 17 Employee retirement 15,802 15,802 15,931 (129) Employee insurance 19,000 19,000 16,391 2,609 Workers' compensation 2,346 2,346 2,147 199 Operating expenditures: General supplies/postage 27,000 27,000 2,925 24,075 Auto operating 2,500 2,500 3,100 (600) Utility services 188,100 188,100 371,972 (183,872) Contracts/repairs 70,085 70,085 54,251 15,834 Professional services 6,700 6,700 6,940 (240) Special department supplies 10,000 10,000 10,685 (685) Insurance 25,101 25,101 31,283 (6,182) Uniforms 1,200 1,200 150 1,050 Total city buildings 457,084 457,084 605,926 (148,842) Building Standards Personnel services: Salaries and wages 361,447 361,447 357,623 3,824 FICA 27,651 27,651 27,046 605 Employee retirement 68,892 68,892 67,796 1,096 Employee insurance 54,625 54,625 47,125 7,500 Workers' compensation 9,436 9,436 8,635 801 (Continued) 68 Budget Variance with Actual Final BudgetOriginalFinal CITY OF NORTH AUGUSTA, SOUTH CAROLINA GENERAL FUND SCHEDULE OF REVENUES AND EXPENDITURES COMPARED WITH BUDGET FOR THE YEAR ENDED DECEMBER 31, 2024 Expenditures (Continued): General Government (Continued) Building Standards (Continued) Operating expenditures: General supplies/postage $ 3,000 $ 3,000 $ 2,756 $ 244 Dues/training/travel 5,700 5,700 4,909 791 Auto operating 8,650 8,650 8,878 (228) Data processing 18,100 18,100 15,385 2,715 Contracts/repairs 4,150 4,150 3,358 792 Uniforms/clothing 2,400 2,400 686 1,714 Professional services 10,000 10,000 - 10,000 Special department supplies 4,600 4,600 3,401 1,199 Insurance 4,862 4,862 6,060 (1,198) Capital outlay:- Vehicles 34,000 34,000 32,077 1,923 Total building standards 617,513 617,513 585,735 31,778 Human Resources Personnel services: Salaries and wages 161,116 161,116 153,550 7,566 Overtime pay - - 859 (859) FICA 12,323 12,323 11,557 766 Employee retirement 30,709 30,709 29,517 1,192 Employee insurance 19,000 19,000 16,391 2,609 Workers' compensation 4,815 4,815 4,406 409 Operating expenditures: General supplies/postage 5,435 5,435 2,603 2,832 Dues/training/travel 5,000 5,000 3,557 1,443 Contracts/repairs 900 900 1,238 (338) Advertising 3,500 3,500 - 3,500 Professional services 37,734 37,734 19,345 18,389 Special department supplies 51,200 51,200 15,729 35,471 Insurance 7,713 7,713 9,613 (1,900) Total human resources 339,445 339,445 268,365 71,080 Planning and Development Personnel services: Salaries and wages 466,056 466,056 493,241 (27,185) Overtime pay - - 174 (174) FICA 35,654 35,654 38,169 (2,515) Employee retirement 88,831 88,831 156,736 (67,905) Employee insurance 66,500 66,500 57,370 9,130 Workers' compensation 12,452 12,452 11,395 1,057 Operating expenditures: General supplies/postage 2,500 2,500 3,508 (1,008) Dues/training/travel 8,000 8,000 5,757 2,243 Auto operating 6,525 6,525 2,748 3,777 Data processing 10,100 10,100 2,392 7,708 Contracts/repairs 3,000 3,000 5,471 (2,471) Advertising 2,000 2,000 1,393 607 Professional services 125,000 125,000 1,889 123,111 Special department supplies 3,000 3,000 566 2,434 Insurance 20,856 20,856 25,993 (5,137) Capital outlay: Downtown development 25,000 25,000 25,000 - Furniture/fixtures 2,500 2,500 - 2,500 Total planning and development 877,974 877,974 831,802 46,172 (Continued) 69 Budget Variance with Actual Final BudgetOriginalFinal CITY OF NORTH AUGUSTA, SOUTH CAROLINA GENERAL FUND SCHEDULE OF REVENUES AND EXPENDITURES COMPARED WITH BUDGET FOR THE YEAR ENDED DECEMBER 31, 2024 Expenditures (Continued): General Government (Continued) Property Maintenance Personnel services: Salaries and wages $ 800,349 $ 800,349 $ 799,063 $ 1,286 Overtime pay 26,484 26,484 33,877 (7,393) FICA 68,419 68,419 63,454 4,965 Employee retirement 170,495 170,495 157,856 12,639 Employee insurance 171,000 171,000 147,522 23,478 Workers' compensation 23,982 23,982 22,635 1,347 Operating expenditures: General supplies/postage 1,485 1,485 554 931 Dues/training/travel 2,600 2,600 3,456 (856) Auto operating 47,513 47,513 46,630 883 Utility services 14,300 14,300 18,728 (4,428) Contracts/repairs 40,450 40,450 46,360 (5,910) Building materials/supplies 800 800 713 87 Uniforms/clothing 13,000 13,000 14,003 (1,003) Professional services 51,900 51,900 53,590 (1,690) Special department supplies 222,950 222,950 222,854 96 Insurance 36,440 36,440 47,001 (10,561) Capital outlay: Machines/equipment 143,345 143,345 155,776 (12,431) Total property maintenance 1,835,512 1,835,512 1,834,072 1,440 Information Technology Personnel services: Salaries and wages 295,715 295,715 298,215 (2,500) Overtime pay - - 6,216 (6,216) FICA 22,623 22,623 23,308 (685) Employee retirement 56,364 56,364 57,988 (1,624) Employee insurance 38,000 38,000 32,783 5,217 Workers' compensation 7,976 7,976 7,299 677 Operating expenditures: General supplies/postage 5,900 5,900 2,698 3,202 Dues/training/travel 12,350 12,350 1,994 10,356 Auto operating 2,862 2,862 313 2,549 Utility services 96,700 96,700 125,448 (28,748) Data processing 231,970 231,970 116,194 115,776 Contracts/repairs 164,700 164,700 161,706 2,994 Insurance 32,380 32,380 40,355 (7,975) Capital outlay: Office machines 36,000 36,000 33,812 2,188 Subscription assets - - 700,526 (700,526) Total information technology 1,003,540 1,003,540 1,608,855 (605,315) Total current general government 7,119,407 7,119,407 8,016,402 (896,995) Total capital outlay general government 240,845 240,845 947,191 (706,346) Total general government 7,360,252 7,360,252 8,963,593 (1,603,341) Public Safety Personnel services: Salaries and wages 5,937,568 5,937,568 6,252,599 (315,031) Overtime pay 285,896 285,896 498,542 (212,646) FICA 476,095 476,095 510,055 (33,960) Employee retirement 1,326,908 1,326,908 1,373,858 (46,950) Employee insurance 931,000 931,000 803,176 127,824 Workers' compensation 157,118 157,118 155,873 1,245 (Continued) 70 Budget Variance with Actual Final BudgetOriginalFinal CITY OF NORTH AUGUSTA, SOUTH CAROLINA GENERAL FUND SCHEDULE OF REVENUES AND EXPENDITURES COMPARED WITH BUDGET FOR THE YEAR ENDED DECEMBER 31, 2024 Expenditures (Continued): Public Safety (Continued) Operating expenditures: General supplies/postage $ 26,500 $ 26,500 $ 20,263 $ 6,237 Dues/training/travel 63,000 63,000 63,549 (549) Auto operating 383,250 383,250 424,346 (41,096) Data processing 286,090 286,090 166,817 119,273 Contracts/repairs 180,120 180,120 114,324 65,796 Uniforms/clothing 124,000 124,000 133,389 (9,389) Advertising - - 275 (275) CVA expenditures 36,400 36,400 34,983 1,417 LEN grant 10,000 10,000 7,623 2,377 SRO grant 110,000 110,000 65,642 44,358 Community policing 34,400 34,400 17,149 17,251 NAPS drug related 20,000 20,000 7,535 12,465 Professional services 27,700 27,700 22,154 5,546 Animal control services 15,000 15,000 12,839 2,161 Special department supplies 170,000 170,000 148,356 21,644 Insurance 142,184 142,184 224,946 (82,762) Capital outlay: Vehicles 460,000 460,000 600,297 (140,297) Machines/equipment 40,500 40,500 40,465 35 Total current public safety 10,743,229 10,743,229 11,058,293 (315,064) Total capital outlay public safety 500,500 500,500 640,762 (140,262) Total public safety 11,243,729 11,243,729 11,699,055 (455,326) Public Works Engineering Personnel services: Salaries and wages 233,304 233,304 276,572 (43,268) Overtime pay - - 1,887 (1,887) FICA 17,848 17,848 21,058 (3,210) Employee retirement 44,468 44,468 53,026 (8,558) Employee insurance 28,500 28,500 24,587 3,913 Workers' compensation 6,520 6,520 5,967 553 Operating expenditures: General supplies/postage 500 500 547 (47) Dues/training/travel 4,325 4,325 5,711 (1,386) Auto operating 4,300 4,300 2,232 2,068 Data processing 7,700 7,700 5,867 1,833 Contracts/repairs 3,500 3,500 3,179 321 Uniforms/clothing 1,100 1,100 1,237 (137) Advertising 100 100 - 100 Professional services 1,000 1,000 59 941 Special department supplies 1,500 1,500 1,263 237 Insurance 2,294 2,294 2,859 (565) Total engineering 356,959 356,959 406,051 (49,092) Street Lighting and Traffic Signals Operating expenditures: General supplies/postage - - 126 (126) Utility services 432,000 432,000 408,569 23,431 Contracts/repairs 13,000 13,000 15,039 (2,039) Special department supplies 14,000 14,000 2,232 11,768 Insurance 36,306 36,306 45,248 (8,942) Total street lighting and traffic signals 495,306 495,306 471,214 24,092 (Continued) 71 Budget Variance with Actual Final BudgetOriginalFinal CITY OF NORTH AUGUSTA, SOUTH CAROLINA GENERAL FUND SCHEDULE OF REVENUES AND EXPENDITURES COMPARED WITH BUDGET FOR THE YEAR ENDED DECEMBER 31, 2024 Expenditures (Continued): Public Works (Continued) Streets and Drains Personnel services: Salaries and wages $ 519,943 $ 519,943 $ 446,549 $ 73,394 Overtime pay 9,678 9,678 9,772 (94) FICA 40,516 40,516 34,481 6,035 Employee retirement 100,946 100,946 86,351 14,595 Employee insurance 95,000 95,000 81,957 13,043 Workers' compensation 15,664 15,664 14,335 1,329 Operating expenditures: General supplies/postage 1,000 1,000 90 910 Dues/training/travel 2,900 2,900 760 2,140 Auto operating 40,000 40,000 37,027 2,973 Contracts/repairs 126,000 126,000 143,223 (17,223) Building materials/supplies 82,500 82,500 45,141 37,359 Uniforms/clothing 9,800 9,800 6,270 3,530 Professional services 19,270 19,270 10,600 8,670 Special department supplies 25,500 25,500 6,375 19,125 Insurance 29,172 29,172 36,357 (7,185) Total streets and drains 1,117,889 1,117,889 959,288 158,601 Total current public works 1,970,154 1,970,154 1,836,553 133,601 Total public works 1,970,154 1,970,154 1,836,553 133,601 Parks, Recreation, and Tourism Recreation Personnel services: Salaries and wages 503,897 503,897 500,578 3,319 Overtime pay 12,439 12,439 23,040 (10,601) FICA 39,500 39,500 40,044 (544) Employee retirement 98,414 98,414 99,704 (1,290) Employee insurance 76,000 76,000 65,565 10,435 Workers' compensation 14,563 14,563 13,923 640 Operating expenditures: General supplies/postage 2,400 2,400 1,205 1,195 Dues/training/travel 6,495 6,495 9,033 (2,538) Auto operating 4,925 4,925 1,639 3,286 Contracts/repairs 5,500 5,500 6,751 (1,251) Uniforms/clothing 900 900 - 900 Advertising 650 650 275 375 Tournaments/special events - - 1,617 (1,617) Professional services 186,000 186,000 201,067 (15,067) Special department supplies 21,900 21,900 5,217 16,683 Basketball program 23,000 23,000 19,957 3,043 Softball program 26,000 26,000 30,647 (4,647) Football program 48,500 48,500 83,767 (35,267) Baseball program 46,500 46,500 71,941 (25,441) Soccer program 50,000 50,000 41,922 8,078 Volleyball program 6,500 6,500 4,568 1,932 Concession stand supplies 32,000 32,000 72,146 (40,146) Insurance 42,217 42,217 52,615 (10,398) Capital outlay: Furniture/fixtures 1,000 1,000 - 1,000 Machines/equipment 30,000 30,000 30,000 - Total recreation 1,279,300 1,279,300 1,377,221 (97,921) (Continued) 72 Budget Variance with Actual Final BudgetOriginalFinal CITY OF NORTH AUGUSTA, SOUTH CAROLINA GENERAL FUND SCHEDULE OF REVENUES AND EXPENDITURES COMPARED WITH BUDGET FOR THE YEAR ENDED DECEMBER 31, 2024 Expenditures (Continued): Parks, Recreation, and Tourism (Continued) Parks Personnel services: Salaries and wages $ 370,951 $ 370,951 $ 298,639 $ 72,312 Overtime pay 16,063 16,063 13,780 2,283 FICA 29,676 29,676 23,168 6,508 Employee retirement 73,937 73,937 59,120 14,817 Employee insurance 76,000 76,000 65,565 10,435 Workers' compensation 8,999 8,999 8,235 764 Operating expenditures: General supplies/postage 500 500 3,712 (3,212) Dues/training/travel 1,600 1,600 176 1,424 Auto operating 15,425 15,425 21,353 (5,928) Utility services 25,000 25,000 23,511 1,489 Contracts/repairs 80,000 80,000 114,169 (34,169) Building materials/supplies 10,000 10,000 3,943 6,057 Uniforms/clothing 1,800 1,800 810 990 Professional services 10,000 10,000 9,181 819 Special department supplies 10,000 10,000 3,186 6,814 Disaster relief efforts - - 485 (485) Insurance 13,405 13,405 16,707 (3,302) Total parks 743,356 743,356 665,740 77,616 Community Center Personnel services: Salaries and wages 43,822 43,822 49,769 (5,947) Overtime pay 3,938 3,938 2,848 1,090 FICA 3,654 3,654 4,057 (403) Employee retirement 9,103 9,103 10,008 (905) Employee insurance 9,500 9,500 8,196 1,304 Workers' compensation 1,837 1,837 1,681 156 Operating expenditures: General supplies/postage 2,800 2,800 1,577 1,223 Dues/training/travel 500 500 - 500 Auto operating 1,000 1,000 1,360 (360) Utility services 20,000 20,000 38,792 (18,792) Contracts/repairs 26,200 26,200 22,007 4,193 Building materials/supplies - - 66 (66) Uniforms/clothing 750 750 595 155 Professional services 7,500 7,500 18,103 (10,603) Special department supplies 11,000 11,000 8,066 2,934 Insurance 5,504 5,504 10,710 (5,206) Total community center 147,108 147,108 177,835 (30,727) RVP Activities Center Personnel services: Salaries and wages 272,584 272,584 291,671 (19,087) Overtime pay 6,885 6,885 15,115 (8,230) FICA 21,380 21,380 23,284 (1,904) Employee retirement 53,267 53,267 58,462 (5,195) Employee insurance 42,750 42,750 36,881 5,869 Workers' compensation 9,501 9,501 8,695 806 (Continued) 73 Budget Variance with Actual Final BudgetOriginalFinal CITY OF NORTH AUGUSTA, SOUTH CAROLINA GENERAL FUND SCHEDULE OF REVENUES AND EXPENDITURES COMPARED WITH BUDGET FOR THE YEAR ENDED DECEMBER 31, 2024 Expenditures (Continued): Parks, Recreation, and Tourism (Continued) RVP Activities Center (Continued) Operating expenditures: General supplies/postage $ 16,500 $ 16,500 $ 16,780 $ (280) Dues/training/travel 900 900 4,005 (3,105) Auto operating 2,025 2,025 121 1,904 Contracts/repairs 108,100 108,100 117,364 (9,264) Uniforms/clothing 1,400 1,400 130 1,270 Advertising 1,100 1,100 - 1,100 Tournaments/special events 295,000 295,000 478,563 (183,563) Special department supplies 24,500 24,500 13,876 10,624 Basketball program - - 474 (474) Volleyball program - - 209 (209) Concession stand supplies - - 1,285 (1,285) Insurance 29,707 29,707 37,024 (7,317) Capital outlay: Furniture/fixtures 10,000 10,000 - 10,000 Total RVP activities center 895,599 895,599 1,103,939 (208,340) Tourism Personnel services: Salaries and wages 82,325 82,325 84,309 (1,984) Overtime pay - - 5,706 (5,706) FICA 6,298 6,298 6,821 (523) Employee retirement 15,692 15,692 16,697 (1,005) Employee insurance 9,500 9,500 8,196 1,304 Workers' compensation 1,542 1,542 1,411 131 Operating expenditures: General supplies/postage 12,000 12,000 11,044 956 Dues/training/travel 500 500 265 235 Auto operating 17,500 17,500 6,983 10,517 Data processing - - 40 (40) Professional services 4,500 4,500 3,919 581 Tourism events/festivals/supplies 175,000 175,000 221,472 (46,472) Community policing - - 1,486 (1,486) Special department supplies - - 10,564 (10,564) Insurance 18,409 18,409 22,943 (4,534) Total tourism 343,266 343,266 401,856 (58,590) Total current parks, recreation, and tourism 3,367,629 3,367,629 3,696,591 (328,962) Total capital outlay parks, recreation, and tourism 41,000 41,000 30,000 11,000 Total parks, recreation, and tourism 3,408,629 3,408,629 3,726,591 (317,962) Debt Service: Principal retirement 636,291 636,291 682,118 (45,827) Interest 12,315 12,315 50,075 (37,760) Total debt service 648,606 648,606 732,193 (83,587) Total expenditures $ 24,631,370 $ 24,631,370 $ 26,957,985 $ (2,326,615) 74 CITY OF NORTH AUGUSTA, SOUTH CAROLINA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS DECEMBER 31, 2024 Total Special Capital Nonmajor Revenue Projects Governmental ASSETS Funds Funds Funds Cash and cash equivalents $ 6,434,297 $ 517,310 $ 6,951,607 Intergovernmental receivables 87,569 - 87,569 Total assets $ 6,521,866 $ 517,310 $ 7,039,176 LIABILITIES AND FUND BALANCES LIABILITIES Accounts payable $ 334,682 $ 75,866 $ 410,548 Retainage payable 85,674 - 85,674 Total liabilities 420,356 75,866 496,222 FUND BALANCES Restricted: Public safety - fire division 136,213 - 136,213 Special projects 5,965,297 - 5,965,297 Capital projects - 108,978 108,978 Committed: Capital projects - 323,146 323,146 Assigned: Capital projects - 9,320 9,320 Total fund balances 6,101,510 441,444 6,542,954 Total liabilities and fund balances $ 6,521,866 $ 517,310 $ 7,039,176 75 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, 2024 Total Special Capital Nonmajor Revenue Projects Governmental Funds Funds Funds Revenues: Intergovernmental $ 432,497 $ 102,568 $ 535,065 Local hospitality and accommodations taxes 3,227,892 - 3,227,892 Interest earnings 1,117,596 13,956 1,131,552 Miscellaneous 2,804 780 3,584 Total revenues 4,780,789 117,304 4,898,093 Expenditures: Current: General government 23,436 - 23,436 Public safety 93,793 - 93,793 Public works 255,259 93,713 348,972 Parks, recreation & tourism 720,476 - 720,476 Capital outlay 7,032 20,180 27,212 Total expenditures 1,099,996 113,893 1,213,889 Excess of revenues over expenditures 3,680,793 3,411 3,684,204 Other financing sources (uses): Transfers in 356 - 356 Transfers out (2,595,118) - (2,595,118) Total other financing uses, net (2,594,762) - (2,594,762) Net change in fund balances 1,086,031 3,411 1,089,442 Fund balances, beginning of year 5,015,479 438,033 5,453,512 Fund balances, end of year $ 6,101,510 $ 441,444 $ 6,542,954 76 CITY OF NORTH AUGUSTA, SOUTH CAROLINA SPECIAL REVENUE FUNDS Special Revenue Funds are used to account for specific revenue received which are restricted to expenditures for particular purposes (other than capital projects). The City currently has established the following Special Revenue Funds: Accommodations Tax Fund – This fund is used to account for the receipt and disbursement of money from the state accommodations tax for the purpose of assisting in the development of innovative and/or effective tourism promotion projects at the local level. Fireman’s Fund – This fund is used to account for the receipt and disbursement of money from the one percent tax through the South Carolina State Firefighters’ Association to be used to benefit firefighters that the department resources do not provide. Riverfront/Central Core Redevelopment Fund – This fund is used for the receipt and disbursement of City hospitality and accommodations tax funds for projects in the redevelopment of the downtown area and the development of the riverfront and Riverside Village. Savannah River Settlement Fund – The source of revenue appropriated in this section is the August 31, 2020 settlement of the lawsuit between the State of South Carolina and the United Stated Department of Energy (DOE) concerning the termination of the Mixed Dioxide Fuel Fabrication Facility at the Savannah River Site (SRS) and the DOE’s failure to remove the plutonium stored at the SRS which is located in Aiken, Barnwell, and Allendale Counties. The expenditure authorizations contained in this section are for the maximum amounts that may be disbursed or expended by the receiving government entity. All disbursals and expenditures must be made in compliance with the provisions contained in this act. The City of North Augusta was approved for the following projects: New Savannah Bluff Lock and Dam Redevelopment ($20,000,000), Cyber Initiative Infrastructure ($15,000,000), and Regional Solid Waste Transfer Station ($2,000,000). ASSETSCash and cash equivalents $ 527,762 $ 138,503 $ 5,235,007 $ 533,025 $ 6,434,297 Intergovernmental receivable 87,569 - - - 87,569 Total assets $ 615,331 $ 138,503 $ 5,235,007 $ 533,025 $ 6,521,866 LIABILITIES AND FUND BALANCESLIABILITIESAccounts payable$36,773 $2,290 $35,873 $ 259,746 $ 334,682 Retainage payable- - - 85,674 85,674 Total liabilities36,773 2,290 35,873 345,420 420,356 FUND BALANCES Restricted: Public safety - fire division- 136,213 - - 136,213 Special projects578,558 - 5,199,134 187,605 5,965,297 Total fund balances 578,558 136,213 5,199,134 187,605 6,101,510 Total liabilities and fund balances $ 615,331 $ 138,503 $ 5,235,007 $ 533,025 $ 6,521,866 RedevelopmentFundSavannah RiverSettlementFundTaxFundFireman'sFundSpecial RevenueFundsCITY OF NORTH AUGUSTA, SOUTH CAROLINACOMBINING BALANCE SHEET NONMAJOR SPECIAL REVENUE FUNDS DECEMBER 31, 2024NonmajorSpecial Revenue Funds AccommodationsRiverfront/Central CoreTotal77 Revenues:Local hospitality and accommodations taxes $ - $ - $ 3,227,892 $ - $ 3,227,892 Intergovernmental333,657 98,840 - - 432,497 Interest earnings9,022 1,253 173,316 934,005 1,117,596 Miscellaneous- - 2,804 - 2,804 Total revenues342,679 100,093 3,404,012 934,005 4,780,789 Expenditures:Current:General government- - 23,436 - 23,436 Public safety- 93,793 - - 93,793 Public works- - - 255,259 255,259 Parks, recreation and tourism 188,562 - 531,914 - 720,476 Capital outlay- - 7,032 - 7,032 Total expenditures188,562 93,793 562,382 255,259 1,099,996 Excess of revenues over expenditures 154,117 6,300 2,841,630 678,746 3,680,793 Other financing sources (uses) Transfers in- - 356 - 356 Transfers out- - (1,562,574) (1,032,544) (2,595,118) Total other financing uses, net - - (1,562,218) (1,032,544) (2,594,762) Net change in fund balances 154,117 6,300 1,279,412 (353,798) 1,086,031 Fund balances, beginning of year424,441 129,913 3,919,722 541,403 5,015,479 Fund balances, end of year$578,558 $ 136,213 $ 5,199,134 $ 187,605 $ 6,101,510 CITY OF NORTH AUGUSTA, SOUTH CAROLINACOMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCESFOR THE YEAR ENDED DECEMBER 31, 2024Special Revenue Funds NONMAJOR SPECIAL REVENUE FUNDS FundsTotalTaxFundAccommodationsSpecial RevenueNonmajorRiverfront/Savannah RiverSettlementFundFireman'sFundRedevelopmentFundCentral Core78 CITY OF NORTH AUGUSTA, SOUTH CAROLINA CAPITAL PROJECTS FUNDS Capital Projects Funds are used to account for financial resources used for the acquisition of/for construction of major capital facilities (other than those financed by the Proprietary Fund). The primary sources of money, in these funds, are the proceeds of general obligation bond issues and interest earnings. Sales Tax III Fund – This fund is used to account for the receipt and disbursement of money from county-wide capital project sales tax. Street Improvement Fund – This fund is used to account for the receipt and disbursement of money related to the maintenance, repair, and construction of streets and related infrastructure. Transportation Improvement Fund – This fund is used to account for the receipt and disbursement of money related to the maintenance, repair, and constriction of streets and related infrastructure. NonmajorCapital ProjectsFundsASSETSCash and cash equivalents$8,978 $ 408,670 $99,662 $ 517,310 Total assets$8,978 $ 408,670 $99,662 $ 517,310 LIABILITIES AND FUND BALANCESLIABILITIESAccounts payable$- $75,866 $- $75,866 Total liabilities- 75,866 - 75,866 FUND BALANCES Restricted: Capital projects8,978 100,000 - 108,978 Committed: Capital projects- 232,804 90,342 323,146 Assigned: Capital projects- - 9,320 9,320 Total fund balances8,978 332,804 99,662 441,444 Total liabilities and fund balances$8,978 $ 408,670 $99,662 $ 517,310 Transportation ImprovementSales Tax IIIFundFundImprovementsFundStreet TotalCITY OF NORTH AUGUSTA, SOUTH CAROLINACOMBINING BALANCE SHEET NONMAJOR CAPITAL PROJECTS FUNDS DECEMBER 31, 2024Capital Projects Funds79 NonmajorCapital ProjectsFundsRevenues:Intergovernmental$- $ 102,568 $- $ 102,568 Interest earnings1,37911,1901,38713,956 Miscellaneous- 780- 780 Total revenues1,379 114,538 1,387 117,304 Expenditures:Current:Public works- 93,713- 93,713 Capital outlay20,180 - - 20,180 Total expenditures20,180 93,713 - 113,893 Excess (deficiency) of revenues over (under) expenditures(18,801) 20,825 1,387 3,411 Net change in fund balances(18,801) 20,825 1,387 3,411 Fund balances, beginning of year27,779 311,97998,275438,033 Fund balances, end of year$8,978 $ 332,804 $99,662 $ 441,444 FundFundFundTransportation Improvements ImprovementStreet Sales Tax IIITotalCITY OF NORTH AUGUSTA, SOUTH CAROLINACOMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCESNONMAJOR CAPITAL PROJECTS FUNDS FOR THE YEAR ENDED DECEMBER 31, 2024Capital Projects Funds80 CITY OF NORTH AUGUSTA, SOUTH CAROLINA Budget Actual OPERATING REVENUES Water sales $ 3,799,097 $ 4,065,018 $ 265,921 Sewer sales 7,218,446 7,976,813 758,367 Water tap fees 191,370 277,599 86,229 Sewer tap fees 276,600 353,897 77,297 Fire protection fees 14,894 - (14,894) Other 690,945 739,165 48,220 Total operating revenues 12,191,352 13,412,492 1,221,140 OPERATING EXPENSES Utilities finance 804,412 730,497 73,915 Utilities administration 663,957 640,689 23,268 Water operations and maintenance 1,280,516 939,337 341,179 Water production and treatment 1,844,527 1,801,659 42,868 Wastewater operations and maintenance 5,506,334 5,314,260 192,074 Depreciation and amortization - 1,795,327 (1,795,327) Total operating expenses 10,099,746 11,221,769 (1,122,023) Operating income 2,091,606 2,190,723 99,117 NONOPERATING REVENUE (EXPENSE) Interest income 65,000 660,815 595,815 Gain on sale of capital assets - 27,549 27,549 Interest expense - (257,363) (257,363) Intergovernmental - 23,515 23,515 Total nonoperating revenues, net 65,000 454,516 389,516 Income before capital contributions and transfers 2,156,606 2,645,239 488,633 CAPITAL CONTRIBUTIONS - 427,378 427,378 TRANSFERS Transfers in 23,759 20,068,172 20,044,413 Transfers out (2,315,465) (17,215,974) (14,900,509) Total transfers (2,291,706) 2,852,198 5,143,904 Change in net position (135,100) 5,924,815 6,059,915 Total net position, beginning of year, as previously reported 67,675,004 67,675,004 - Adjustment for change in accounting principle (371,246) (371,246) - Total net position, beginning of year, as restated 67,303,758 67,303,758 - Total net position, end of year $ 67,168,658 $ 73,228,573 $ 6,059,915 WATER AND WASTEWATER SYSTEM FUND SCHEDULE OF REVENUES AND EXPENSES BUDGET AND ACTUAL - GAAP BASIS FOR THE YEAR ENDED DECEMBER 31, 2024 Variance with Budget 81 CITY OF NORTH AUGUSTA, SOUTH CAROLINA Budget Actual OPERATING EXPENSES Utilities Finance Personnel services: Salaries and wages $ 273,417 $ 255,215 $ 18,202 FICA 20,917 19,894 1,023 Employee retirement 48,225 34,919 13,306 Employee insurance 47,500 40,978 6,522 Workers' compensation 7,051 6,453 598 Other operating expenses: General supplies/postage 120,000 130,515 (10,515) Dues/training/travel 3,200 1,339 1,861 Data processing 185,000 153,448 31,552 Contracts and repairs 26,700 6,675 20,025 Professional services 14,431 16,591 (2,160) Special departmental supplies 500 478 22 Insurance 26,471 32,991 (6,520) Bad debts 31,000 31,001 (1) Total utilities finance 804,412 730,497 73,915 Utilities Administration: Personnel services: Salaries and wages 353,664 318,849 34,815 Overtime pay 8,838 19,942 (11,104) FICA 27,732 26,622 1,110 Employee retirement 69,093 46,412 22,681 Employee insurance 61,750 53,272 8,478 Workers' compensation 9,739 8,913 826 Other operating expenses: General supplies 1,900 896 1,004 Dues/training/travel 3,450 3,974 (524) Auto operating 61,008 17,359 43,649 Utility services 8,740 13,219 (4,479) Contracts and repairs 18,170 31,842 (13,672) Building materials 150 130 20 Uniforms and clothing 4,400 3,460 940 Professional services 4,000 2,376 1,624 Special departmental supplies 275 607 (332) Insurance 6,063 92,816 (86,753) Lease purchase 24,985 - 24,985 Total utilities administration 663,957 640,689 23,268 Water Operations and Maintenance: Personnel services: Salaries and wages 474,085 419,950 54,135 Overtime pay 17,607 41,260 (23,653) FICA 37,615 35,964 1,651 Employee retirement 93,717 67,309 26,408 Employee insurance 85,500 73,330 12,170 Workers' compensation 13,227 12,104 1,123 Other operating expenses: Dues/training/travel 1,750 1,779 (29) Auto operating 196,768 48,881 147,887 Contracts and repairs 21,400 35,713 (14,313) Building materials 10,236 12,150 (1,914) Uniforms and clothing 6,100 5,046 1,054 Special departmental supplies 266,545 144,245 122,300 Insurance 8,497 41,606 (33,109) Lease purchase 27,807 - 27,807 Buildings/fixed equipment 10,000 - 10,000 Machines/equipment 9,662 - 9,662 Total water operations and maintenance 1,280,516 939,337 341,179 (Continued) WATER AND WASTEWATER SYSTEM FUND BUDGET AND ACTUAL - GAAP BASIS FOR THE YEAR ENDED DECEMBER 31, 2024 SCHEDULE OF OPERATING EXPENSES Variance with Budget 82 CITY OF NORTH AUGUSTA, SOUTH CAROLINA Budget Actual OPERATING EXPENSES (CONTINUED) Water Production and Treatment: Personnel services: Salaries and wages $ 509,886 $ 532,173 $ (22,287) Overtime pay 26,780 31,015 (4,235) FICA 41,055 42,445 (1,390) Employee retirement 102,289 77,700 24,589 Employee insurance 76,000 65,565 10,435 Workers' compensation 14,311 13,097 1,214 Other operating expenses: General supplies 2,600 7,540 (4,940) Dues/training/travel 6,050 3,035 3,015 Auto operating 59,873 4,322 55,551 Utility services 384,911 434,165 (49,254) Contracts and repairs 177,525 125,279 52,246 Building materials 700 6,593 (5,893) Uniforms and clothing 5,240 2,669 2,571 Professional services 39,319 45,134 (5,815) Special departmental supplies 292,812 318,547 (25,735) ACPSA treatment charges 3,000 4,025 (1,025) Insurance 70,894 88,355 (17,461) Lease purchase 31,282 - 31,282 Total water production and treatment 1,844,527 1,801,659 42,868 Wastewater Operations and Maintenance: Personnel services: Salaries and wages 577,688 555,620 22,068 Overtime pay 23,032 49,268 (26,236) FICA 45,956 47,630 (1,674) Employee retirement 114,498 87,725 26,773 Employee insurance 104,500 90,152 14,348 Workers' compensation 16,095 14,729 1,366 Other operating expenses: Dues/training/travel 700 1,093 (393) Auto operating 199,596 38,676 160,920 Utility services 80,166 84,765 (4,599) Contracts and repairs 105,700 109,238 (3,538) Building materials 11,930 17,905 (5,975) Uniforms and clothing 7,700 7,256 444 Special departmental supplies 18,600 - 18,600 ACPSA treatment charges 3,995,000 4,165,840 (170,840) Lease purchase 130,131 - 130,131 Insurance 34,930 44,363 (9,433) Clay pump station improvements 17,000 - 17,000 Machines and equipment 23,112 - 23,112 Total wastewater operations and maintenance 5,506,334 5,314,260 192,074 Depreciation and amortization - 1,795,327 (1,795,327) Total operating expenses $ 10,099,746 $ 11,221,769 $ (1,122,023) Variance with Budget BUDGET AND ACTUAL - GAAP BASIS FOR THE YEAR ENDED DECEMBER 31, 2024 WATER AND WASTEWATER SYSTEM FUND SCHEDULE OF OPERATING EXPENSES 83 CITY OF NORTH AUGUSTA, SOUTH CAROLINA Budget Actual OPERATING REVENUES Stormwater utility fees $ 1,052,000 $ 1,057,103 $ 5,103 Other 13,332 29,808 16,476 Total operating revenues 1,065,332 1,086,911 21,579 OPERATING EXPENSES Stormwater operations 1,036,573 574,493 462,080 Depreciation - 495,535 (495,535) Total operating expenses 1,036,573 1,070,028 (33,455) Operating income 28,759 16,883 (11,876) NONOPERATING REVENUE (EXPENSES) Interest income 7,500 42,892 35,392 Interest expense - (577) (577) Total nonoperating revenues, net 7,500 42,315 34,815 Income before capital contributions and transfers 36,259 59,198 22,939 CAPITAL CONTRIBUTIONS - 729,946 729,946 TRANSFERS Transfers in 2,644 2,644 - Transfers out (38,903) (38,903) - Total transfers (36,259) (36,259) - Change in net position - 752,885 752,885 Total net position, beginning of year, as previously reported 10,598,355 10,598,355 - Adjustment for change in accounting principle (92,593) (92,593) - Total net position, beginning of year, as restated 10,505,762 10,505,762 - Total net position, end of year $ 10,505,762 $ 11,258,647 $ 752,885 Variance with Budget STORMWATER UTILITY FUND SCHEDULE OF REVENUES AND EXPENSES BUDGET AND ACTUAL - GAAP BASIS FOR THE YEAR ENDED DECEMBER 31, 2024 84 CITY OF NORTH AUGUSTA, SOUTH CAROLINA Budget Actual OPERATING EXPENSES Personnel services: Salaries and wages $ 407,428 $ 342,072 $ 65,356 Overtime pay 2,323 5,063 (2,740) FICA 31,346 28,476 2,870 Employee retirement 78,099 37,690 40,409 Employee insurance 59,375 51,223 8,152 Workers' compensation 11,033 11,034 (1) Other operating expenses: General supplies 800 687 113 Dues/training/travel 6,425 2,430 3,995 Auto operating 14,600 14,182 418 Data processing 18,913 15,217 3,696 Contracts and repairs 7,400 4,067 3,333 Building material - 155 (155) Uniforms and clothing 3,400 2,503 897 Advertising 5,300 1,757 3,543 Professional services 41,971 29,682 12,289 Special departmental supplies 8,700 9,325 (625) Insurance 11,507 18,930 (7,423) Leases 33,000 - 33,000 Drainage projects 275,953 - 275,953 Machines and equipment 19,000 - 19,000 Total stormwater operations 1,036,573 574,493 462,080 Depreciation - 495,535 (495,535) Total operating expenses $ 1,036,573 $ 1,070,028 $ (33,455) Variance with STORMWATER UTILITY FUND SCHEDULE OF OPERATING EXPENSES BUDGET AND ACTUAL - GAAP BASIS FOR THE YEAR ENDED DECEMBER 31, 2024 Budget 85 CITY OF NORTH AUGUSTA, SOUTH CAROLINA Budget Actual OPERATING REVENUES Sanitation service fees $ 4,193,904 $ 4,284,871 $ 90,967 Recycling fees 156,462 197,539 41,077 Sale of recyclables 114,745 190,040 75,295 Other 325,675 66,220 (259,455) Total operating revenues 4,790,786 4,738,670 (52,116) OPERATING EXPENSES Sanitation operations 3,490,251 2,977,928 512,323 Material recovery facility 1,079,135 917,658 161,477 Depreciation - 694,601 (694,601) Total operating expenses 4,569,386 4,590,187 (20,801) Operating income 221,400 148,483 (72,917) NONOPERATING REVENUE (EXPENSES) Interest income 110,000 139,486 29,486 Gain on sale of property - 89,076 89,076 Interest expense - (13,830) (13,830) Total nonoperating revenues, net 110,000 214,732 104,732 Income before transfers 331,400 363,215 31,815 TRANSFERS Transfers in 9,604 1,042,147 1,032,543 Transfers out (341,004) (341,004) - Total transfers (331,400) 701,143 1,032,543 Change in net position - 1,064,358 1,064,358 Total net position, beginning of year, as previously reported 3,852,623 3,852,623 - Adjustment for change in accounting principle (265,845) (265,845) - Total net position, beginning of year, as restated 3,586,778 3,586,778 - Total net position, end of year $ 3,586,778 $ 4,651,136 $ 1,064,358 SCHEDULE OF OPERATING REVENUES AND EXPENSES SANITATION SERVICES FUND BUDGET AND ACTUAL - GAAP BASIS FOR THE YEAR ENDED DECEMBER 31, 2024 Variance with Budget 86 CITY OF NORTH AUGUSTA, SOUTH CAROLINA Budget Actual OPERATING EXPENSES Sanitation Operations Personnel services: Salaries and wages $ 1,310,823 $ 1,193,587 $ 117,236 Overtime pay 22,173 57,091 (34,918) FICA 101,975 96,043 5,932 Employee retirement 254,069 167,719 86,350 Employee insurance 251,750 221,430 30,320 Workers' compensation 35,827 32,787 3,040 Other operating expenses: General supplies 3,167 1,176 1,991 Dues/training 800 375 425 Auto operating 629,548 564,298 65,250 Utility services 26,800 30,733 (3,933) Data processing 27,318 3,769 23,549 Contracts and repairs 9,130 29,788 (20,658) Building material - 70 (70) Uniforms and clothing 16,070 14,512 1,558 Professional services 46,256 179,876 (133,620) Special departmental supplies 295,620 252,547 43,073 Insurance 95,404 132,127 (36,723) Leases 363,521 - 363,521 Total sanitation operations 3,490,251 2,977,928 512,323 Material Recovery Facility Personnel services: Salaries and wages 356,981 297,568 59,413 Overtime pay 2,080 29,243 (27,163) FICA 27,469 24,478 2,991 Employee retirement 68,437 42,784 25,653 Employee insurance 61,750 49,027 12,723 Workers' compensation 8,791 15,491 (6,700) Other operating expenses: General supplies/postage 375 1,153 (778) Dues/training 555 - 555 Auto operating 72,391 133,284 (60,893) Utility services 14,000 8,789 5,211 Contracts and repairs 118,962 70,871 48,091 Building material 1,234 - 1,234 Recycling expenses 300 - 300 Uniforms and clothing 4,800 5,694 (894) Professional services 138,272 165,249 (26,977) Special departmental supplies 15,390 29,185 (13,795) Insurance 33,242 44,842 (11,600) Leases 154,106 - 154,106 Total material recovery facility 1,079,135 917,658 161,477 Depreciation - 694,601 (694,601) Total operating expenses $ 4,569,386 $ 4,590,187 $ (20,801) SCHEDULE OF OPERATING EXPENSES BUDGET AND ACTUAL - GAAP BASIS SANITATION SERVICES FUND Budget Variance with FOR THE YEAR ENDED DECEMBER 31, 2024 87 CITY OF NORTH AUGUSTA, SOUTH CAROLINA UNIFORM SCHEDULE OF COURT FINES, ASSESSMENTS AND SURCHARGES (per ACT 96) FOR THE YEAR ENDED DECEMBER 31, 2024 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 $ 1,026,726 $ 1,026,726 Court fines and assessments remitted to State Treasurer N/A N/A 564,227 564,227 Total Court Fines and Assessments retained N/A N/A $ 462,499 $ 462,499 Surcharges and Assessments retained for victim services: Surcharges collected and retained N/A N/A $ 3,293 $ 3,293 Assessments retained N/A N/A 48,067 48,067 Total Surcharges and Assessments retained for victim services N/A N/A $ 51,360 $ 51,360 FOR THE DEPARTMENT OF CRIME VICTIM COMPENSATION (DCVC) Municipal County Total $ 129,781 N/A $ 129,781 - N/A - 48,067 N/A 48,067 3,293 N/A 3,293 - N/A - - N/A - - N/A - - N/A - - N/A - - N/A - $ 181,141 N/A $ 181,141 (1) Town of VICTIM SERVICE FUNDS COLLECTED Carryforward from Previous Year – Beginning Balance Victim Service Revenue: Victim Service Fines Retained by City/County Treasurer Victim Service Assessments Retained by City/County Treasurer Victim Service Surcharges Retained by City/County Treasurer Interest Earned Grant Funds Received Grant from: General Funds Transferred to Victim Service Fund Contribution Received from Victim Service Contracts: (2) Town of (3) City of Total Funds Allocated to Victim Service Fund + Beginning Balance (A) Developed by the Office of the Attorney General, Department of Crime Victim Compensation 88 CITY OF NORTH AUGUSTA, SOUTH CAROLINA UNIFORM SCHEDULE OF COURT FINES, ASSESSMENTS AND SURCHARGES (per ACT 96) FOR THE YEAR ENDED DECEMBER 31, 2024 Municipal County Total $ 11,546 N/A $ 11,546 2,983 N/A 2,983 - N/A - - N/A - 16,000 N/A 16,000 - N/A - 16,000 N/A 16,000 - N/A - 46,529 N/A 46,529 134,612 N/A 134,612 - N/A - $ 134,612 N/A $ 134,612 (2) Rape Crisis Center: Expenditures for Victim Service Program: Salaries and Benefits Operating Expenditures Victim Service Contract(s): (1) Entity's Name (2) Entity's Name Victim Service Donation(s): (1) Domestic Violence Shelter: Cumbie Center (3) Other local direct crime victims service agency: Child Advocacy Center of Aiken County Transferred to General Fund Total Expenditures from Victim Service Fund/Program (B) Less: Prior Year Fund Deficit Repayment Carryforward Funds – End of Year Total Victim Service Funds Retained by Municipal/County Treasurer (A-B) Developed by the Office of the Attorney General, Department of Crime Victim Compensation 89 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 .......................................................................................................................................... 90 - 94 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 ...................................................................................................................................... 95 - 101 These schedules contain information to help the reader assess the City’s most significant local revenue source, the property tax. Debt Capacity ........................................................................................................................................... 102 - 106 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 ............................................................................................. 107 - 109 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 ............................................................................................................................. 110 - 113 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. 2015 2016 2017 2018 2019 Governmental activities Net investment in capital assets 59,649,524$ 60,261,553$ 46,115,747$ 65,640,358$ 64,540,113$ Restricted 6,964,338 7,616,189 23,744,254 6,574,221 8,729,598 Unrestricted (6,848,500) (5,705,943) (5,641,833) (7,354,106) (9,984,502) Total governmental activities net position 59,765,362$ 62,171,799$ 64,218,168$ 64,860,473$ 63,285,209$ Business-type activities Net investment in capital assets 53,610,839$ 53,203,765$ 55,927,179$ 58,580,045$ 60,703,383$ Restricted 10,248,230 11,374,284 9,618,737 7,977,008 8,433,456 Unrestricted (1,175,007) (387,763) 492,016 1,215,467 1,431,160 Total business-type activities net position 62,684,062$ 64,190,286$ 66,037,932$ 67,772,520$ 70,567,999$ Primary Government Net investment in capital assets 113,260,363$ 113,465,318$ 102,042,926$ 124,220,403$ 125,243,496$ Restricted 17,212,568 18,990,473 33,362,991 14,551,229 17,163,054 Unrestricted (8,023,507) (6,093,706) (5,149,817) (6,138,639) (8,553,342) Total primary government net position 122,449,424$ 126,362,085$ 130,256,100$ 132,632,993$ 133,853,208$ 2020 2021 2022 2023 2024 Governmental activities Net investment in capital assets 64,277,060$ 54,204,071$ 56,753,022$ 69,956,542$ 83,754,381$ Restricted 7,848,687 19,786,412 19,633,892 11,272,709 16,928,855 Unrestricted (9,345,838) (7,117,195) (5,303,954) (2,835,312) (3,059,315) Total governmental activities net position 62,779,909$ 66,873,288$ 71,082,960$ 78,393,939$ 97,623,921$ Business-type activities Net investment in capital assets 61,930,753$ 62,504,303$ 63,792,267$ 68,970,736$ 75,191,616$ Restricted 8,358,324 8,481,549 8,437,860 9,143,935 9,564,203 Unrestricted 1,855,707 3,230,474 5,271,343 4,541,852 4,916,955 Total business-type activities net position 72,144,784$ 74,216,326$ 77,501,470$ 82,656,523$ 89,672,774$ Primary Government Net investment in capital assets 126,207,813$ 116,708,374$ 120,545,289$ 138,927,278$ 158,945,997$ Restricted 16,207,011 28,267,961 28,071,752 20,416,644 26,493,058 Unrestricted (7,490,131) (3,886,721) (32,611) 1,706,540 1,857,640 Total primary government net position 134,924,693$ 141,089,614$ 148,584,430$ 161,050,462$ 187,296,695$ 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. Note: GASB 101, Compensated Absences was adopted by the City for Fiscal Year 2023. A restatement of beginning net position of ($2,225,769) was required to reflect implementation. City of North Augusta, South Carolina Net Position by Component Last Ten Fiscal Years (accrual basis of accounting) Year Ending December 31 Year Ending December 31 90 2015 2016 2017 2018 2019 Expenses Governmental activities: General government 4,573,665$ 4,519,094$ 7,474,923$ 8,855,053$ 11,607,797$ Public safety 7,517,589 8,473,548 8,736,202 9,253,259 9,079,791 Public works 2,051,542 580,327 2,695,126 2,736,631 2,936,592 Parks, recreation, and tourism 4,723,035 5,061,480 4,913,582 3,785,041 4,212,339 Debt service - interest and fees 168,583 155,047 338,132 1,568 276,699 Loss on debt defeasance - - - - - Total governmental activities expenses 19,034,414$ 18,789,496$ 24,157,965$ 24,631,552$ 28,113,218$ Business-type activities: Water and wastewater 8,081,456$ 7,745,232$ 8,359,555$ 8,896,535$ 10,077,290$ Sanitation 4,316,548 4,594,016 4,536,142 4,624,936 4,733,146 Stormwater utility 494,179 541,495 638,634 661,987 789,312 Savannah Bluff Lock and Dam 24,000 24,000 24,000 23,999 24,000 Total business-type activities expenses 12,916,183$ 12,904,743$ 13,558,331$ 14,207,457$ 15,623,748$ Total primary government expenses 31,950,597$ 31,694,239$ 37,716,296$ 38,839,009$ 43,736,966$ Program Revenues Governmental activities: Charges for services: General government 5,621,613$ 5,885,657$ 6,229,497$ 6,361,953$ 6,256,452$ Public safety 1,195,544 1,060,102 1,041,202 892,138 1,044,181 Public Works 65,907 78,018 158,147 167,961 108,726 Parks, recreation, and tourism 1,162,485 1,260,024 1,148,108 1,829,789 2,096,008 Operating grants and contributions 872,652 791,316 1,083,944 1,377,317 1,265,522 Capital grants and contributions - - 207,768 - 759,852 Total governmental activities program revenues 8,918,201$ 9,075,117$ 9,868,666$ 10,629,158$ 11,530,741$ Business-type activities: Charges for services: Water and wastewater 8,664,457$ 9,155,898$ 9,459,054$ 9,746,927$ 10,151,786$ Sanitation 4,168,309 4,246,959 4,472,281 4,355,688 4,487,564 Stormwater utility 746,814 759,131 770,135 782,958 804,213 Operating grants and contributions 2,449 - 10,161 80,636 23,516 Capital grants and contributions 396,837 124,408 103,591 23,514 616,830 Total business-type activities program revenues 13,978,866$ 14,286,396$ 14,815,222$ 14,989,723$ 16,083,909$ Total primary government program revenues 22,897,067$ 23,361,513$ 24,683,888$ 25,618,881$ 27,614,650$ Net (expense) / revenue Governmental activities (10,116,213)$ (9,714,379)$ (14,289,299)$ (14,002,394)$ (15,567,819)$ Business-type activities 1,062,683 1,381,653 1,256,891 782,266 1,605,162 Total primary government net expense (9,053,530)$ (8,332,726)$ (13,032,408)$ (13,220,128)$ (13,962,657)$ General Revenues and Other Changes in Net Position Governmental activities: Ad valorem property taxes 6,874,139$ 7,162,650$ 8,146,680$ 8,143,925$ 8,456,230$ Capital projects sales taxes 2,828,301 2,891,291 3,109,712 3,179,463 1,443,301 Local hospitality and accommodations taxes 713,903 764,056 790,749 1,718,195 2,017,221 Interest on investments 89,791 192,906 423,369 400,007 330,669 Gain(loss) on disposal of capital assets (3,311) - - 9,441 31,203 Miscellaneous 886,062 568,970 3,659,328 1,024,414 1,005,944 Transfers 514,893 540,943 205,830 169,254 748,347 Total governmental activities 11,903,778$ 12,120,816$ 16,335,668$ 14,644,699$ 14,032,915$ Business-type activities: Interest on investments 69,410$ 120,990$ 145,025$ 281,451$ 327,680$ Gain(loss) on disposal of capital assets 46,107 (12,606) 78,747 55,180 465 Miscellaneous 584,902 557,130 572,813 784,945 631,468 Transfers (514,893) (540,943) (205,830) (169,254) (748,347) Total business-type activities 185,526$ 124,571$ 590,755$ 952,322$ 211,266$ Total primary government 12,089,304$ 12,245,387$ 16,926,423$ 15,597,021$ 14,244,181$ Change in Net Position Governmental activities 1,787,565$ 2,406,437$ 2,046,369$ 642,305$ (2,549,562)$ Business-type activities 1,248,209 1,506,224 1,847,646 1,734,588 671,427 Total primary government 3,035,774$ 3,912,661$ 3,894,015$ 2,376,893$ (1,878,135)$ (continued) (accrual basis of accounting) Year Ending December 31 City of North Augusta, South Carolina Changes in Net Position Last Ten Fiscal Years 91 2020 2021 2022 2023 2024 Expenses Governmental activities: General government 7,870,452$ 8,020,594$ 8,978,242$ 9,807,883$ 9,725,538$ Public safety 9,539,596 8,713,621 9,668,579 10,692,057 13,683,146 Public works 2,924,751 2,952,922 3,125,270 3,574,540 3,662,018 Parks, recreation, and tourism 3,371,009 4,197,184 4,454,887 5,026,860 5,329,246 Debt service - interest and fees 3,447,465 3,347,376 3,338,117 3,281,470 3,240,704 Loss on debt defeasance - - - - - Total governmental activities expenses 27,153,273$ 27,231,697$ 29,565,095$ 32,382,810$ 35,640,652$ Business-type activities: Water and wastewater 10,410,462$ 10,164,461$ 10,195,996$ 10,956,787$ 11,479,132$ Sanitation 4,626,296 4,479,166 4,063,126 4,493,114 4,604,017 Stormwater utility 840,358 883,357 955,356 992,622 1,070,605 Savannah Bluff Lock and Dam utility 192,673 133,970 26,000 22,000 24,000 Total business-type activities expenses 16,069,789$ 15,660,954$ 15,240,478$ 16,464,523$ 17,177,754$ Total primary government expenses 43,223,062$ 42,892,651$ 44,805,573$ 48,847,333$ 52,818,406$ Program Revenues Governmental activities: Charges for services: General government 6,420,926$ 6,868,596$ 7,154,304$ 7,682,907$ 8,579,698$ Public safety 911,851 895,682 869,174 942,166 1,005,483 Public Works 85,435 93,392 99,378 107,202 112,142 Parks, recreation, and tourism 1,091,763 2,158,381 2,127,533 2,159,311 2,365,211 Operating grants and contributions 1,287,442 960,878 2,316,342 5,033,679 9,488,327 Capital grants and contributions 1,788,037 2,199,191 639,030 - 255,787 Total governmental activities program revenues 11,585,454$ 13,176,120$ 13,205,761$ 15,925,265$ 21,806,648$ Business-type activities: Charges for services: Water and wastewater 10,666,159$ 11,159,227$ 10,844,304$ 11,202,511$ 12,673,327$ Sanitation 4,862,277 4,791,306 4,003,815 4,469,657 4,672,450 Stormwater utility 821,127 837,701 860,588 882,998 1,057,103 Operating grants and contributions - - - 1,301,017 23,515 Capital grants and contributions 1,325,388 1,332,381 1,166,873 1,631,416 1,157,324 Total business-type activities program revenues 17,674,951$ 18,120,615$ 16,875,580$ 19,487,599$ 19,583,719$ Total primary government program revenues 29,260,405$ 31,296,735$ 30,081,341$ 35,412,864$ 41,390,367$ Net (expense) / revenue Governmental activities (14,055,577)$ (16,359,334)$ (16,359,334)$ (16,457,545)$ (13,834,004)$ Business-type activities 2,459,661 1,635,102 1,635,102 6,023,076 2,405,965 Total primary government net expense (11,595,916)$ (14,724,232)$ (14,724,232)$ (10,434,469)$ (11,428,039)$ General Revenues and Other Changes in Net Position Governmental activities: Ad valorem property taxes 10,632,768$ 11,382,532$ 13,122,687$ 13,789,487$ 15,186,783$ Capital projects sales taxes 176,864 1,770,110 1,770,261 3,423,388 15,190,311 Local hospitality and accommodations taxes 1,830,571 2,385,218 2,664,997 2,933,463 3,227,892 Interest on investments 168,087 62,950 508,037 1,708,263 2,416,575 Gain(loss) on disposal of capital assets - - - - - Miscellaneous 1,095,995 1,329,329 1,472,620 2,237,217 2,055,592 Transfers 1,158,234 1,218,817 1,030,404 (323,294) (3,517,082) Total governmental activities 15,062,519$ 18,148,956$ 20,569,006$ 23,768,524$ 34,560,071$ Business-type activities: Interest on investments 127,876$ 35,498$ 297,154$ 779,787$ 871,070$ Gain(loss) on disposal of capital assets 56,065 95,281 7,860 53,677 116,625 Miscellaneous 945,916 699,919 2,375,432 975,219 835,193 Transfers (1,158,234) (1,218,817) (1,030,404) 323,294 3,517,082 Total business-type activities (28,377)$ (388,119)$ 1,650,042$ 2,131,977$ 5,339,970$ Total primary government 15,034,142$ 17,760,837$ 22,219,048$ 25,900,501$ 39,900,041$ Change in Net Position Governmental activities (505,300)$ 4,093,379$ 4,209,672$ 7,310,979$ 20,726,067$ Business-type activities 1,576,785 2,071,542 3,285,144 5,155,053 7,745,935 Total primary government 1,071,485$ 6,164,921$ 7,494,816$ 12,466,032$ 28,472,002$ City of North Augusta, South Carolina Changes in Net Position Year Ending December 31 Last Ten Fiscal Years (accrual basis of accounting) 92 2015 2016 2017 2018 2019 General Fund Nonspendable -$ -$ -$ -$ -$ Restricted 88,746 103,644 107,443 111,049 115,225 Committed 796,106 1,484,194 1,121,426 937,499 433,393 Unassigned 2,375,000 2,475,000 2,625,000 2,825,000 2,875,000 Total General Fund 3,259,852$ 4,062,838$ 3,853,869$ 3,873,548$ 3,423,618$ All Other Governmental Funds Reserved -$ -$ -$ -$ -$ Restricted 5,790,157 7,512,545 23,636,811 10,531,546 9,423,502 Committed 2,184,346 2,950,803 3,731,713 2,669,258 2,737,813 Assigned 1,261,269 428,854 367,043 344,403 34,138 Unassigned (69,258) - - - - Total all other governmental funds 9,166,514$ 10,892,202$ 27,735,567$ 13,545,207$ 12,195,453$ 2020 2021 2022 2023 2024 General Fund Nonspendable -$ -$ -$ -$ -$ Restricted 119,094 123,331 126,972 129,781 134,612 Committed 689,671 2,834,351 2,174,623 1,906,876 496,218 Unassigned 3,000,000 3,125,000 3,350,000 3,700,000 4,100,000 Total General Fund 3,808,765$ 6,082,682$ 5,651,595$ 5,736,657$ 4,730,830$ All Other Governmental Funds Reserved -$ -$ -$ -$ -$ Restricted 17,733,705 19,663,081 19,506,920 11,142,928 16,794,243 Committed 2,980,435 3,398,961 5,364,974 7,143,941 9,207,742 Assigned 5,837 6,155 6,606 7,933 9,320 Unassigned - - (67,241) (259,577) - Total all other governmental funds 20,719,977$ 23,068,197$ 24,811,259$ 18,035,225$ 26,011,305$ 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) 93 2015 2016 2017 2018 2019 RevenuesAd valorem taxes 6,871,821$ 7,163,429$ 7,446,013$ 8,018,222$ 8,404,331$ Sales taxes 2,828,301 2,891,291 3,109,712 3,179,463 2,235,581 Local hospitality and accommodations taxes 713,903 764,056 790,749 1,718,195 2,017,221 Licenses and permits 5,621,613 5,885,657 6,229,497 6,361,953 6,256,452 Fines and forfeitures 1,138,891 996,799 978,626 834,200 1,006,060 Charges for services 1,285,045 1,401,345 1,291,321 1,974,016 2,226,219 Intergovernmental 872,652 791,316 4,179,592 1,899,080 1,569,665 Miscellaneous/interest earnings 977,123 781,035 1,000,276 1,068,804 1,111,636 Contributions - - - - - - - - - - Total Revenues 20,309,349$ 20,674,928$ 25,025,786$ 25,053,933$ 24,827,165$ Expenditures General government 4,028,393$ 3,712,733$ 3,406,445$ 4,759,360$ 5,751,630$ Public safety 7,833,279 7,990,705 7,921,809 8,379,644 8,932,323 Public works 1,487,619 1,394,286 1,515,323 1,594,271 1,728,518 Parks, recreation and tourism 3,647,665 4,022,934 4,085,589 3,043,122 3,278,290 Capital outlay 13,260,678 1,790,360 45,762,352 18,736,157 4,909,427 Debt service: Lease payments 897,952 929,907 3,991,122 619,864 731,955 Interest and fiscal charges 164,947 155,047 1,712,670 3,217,755 3,217,751 Principal Retirements - - 12,573,657 (b)- (b)- Bond Issuance Costs - - 1,495,554 - - Total Expenditures 31,320,533$ 19,995,972$ 82,464,521$ 40,350,173$ 28,549,894$ Excess (deficiency) of revenues over (under) expenditures (11,011,184)$ 678,956$ (57,438,735)$ (15,296,240)$ (3,271,509)$ Other financing sources (uses)Proceeds on sale of capital assets -$ -$ -$ -$ Issuance of capital lease 887,594 880,655 473,983 432,308 838,111 Lease issuance cost 9,738,217 428,120 71,882,320 - - Issuance of bonds - - 178,260 (a)- (a)- Transfers in 23,350,453 1,397,258 10,699,613 4,538,136 3,825,974 Transfers out (22,835,560) (856,315) (9,161,045) (3,844,885) (2,741,040) Total other financing sources (uses) 11,140,704$ 1,849,718$ 74,073,131$ 1,125,559$ 1,923,045$ Net change in fund balance 129,520$ 2,528,674$ 16,634,396$ (14,170,681)$ (1,348,464)$ Debt service as a percentage of noncapital expenditures 6.42% 7.03% 54.73%(b)18.18%(b)18.09% 2020 2021 2022 2023 2024Revenues Ad valorem taxes 9,655,624$ 12,220,170$ 12,932,274$ 13,682,634$ 15,014,241$ Sales taxes 176,864 1,770,110 1,770,261 3,423,388 15,190,311 Local hospitality and accommodations taxes 1,830,571 2,385,218 2,664,997 2,933,463 3,227,892 Licenses and permits 6,420,926 6,868,596 7,154,304 7,682,907 8,579,698 Fines and forfeitures 872,727 854,434 828,347 901,098 949,905 Charges for services 1,216,322 2,293,021 2,267,738 2,307,581 2,532,931 Intergovernmental 1,452,465 1,168,208 2,729,348 5,446,755 10,139,045 Miscellaneous/interest earnings 1,157,925 1,237,945 1,813,821 3,729,362 4,279,316 Contributions - - - - - - - - - - Total Revenues 22,783,424$ 28,797,702$ 32,161,090$ 40,107,188$ 59,913,339$ ExpendituresGeneral government 5,503,855$ 5,849,145$ 6,864,168$ 7,471,111$ 8,783,872$ Public safety 8,058,484 7,986,178 8,931,947 9,848,498 12,797,133 Public works 1,520,495 1,553,477 1,696,583 2,118,206 2,185,525 Parks, recreation and tourism 2,500,187 3,353,253 3,641,616 4,208,884 4,436,777 Capital outlay 3,747,567 3,287,647 4,988,864 17,034,414 15,169,459 Debt service: Lease payments 711,865 702,138 - - - Interest and fiscal charges 3,273,533 3,325,369 3,348,840 3,287,466 3,258,324 Principal Retirements 650,000 739,968 3,184,079 3,458,032 3,437,741 Bond Issuance Costs 88,947 - - - - Total Expenditures 26,054,933$ 26,797,175$ 32,656,097$ 47,426,611$ 50,068,831$ Excess (deficiency) of revenues over (under) expenditures 2,000,527$ (495,007)$ (495,007)$ (7,319,423)$ 9,844,508$ Other financing sources (uses) Proceeds on sale of capital assets -$ -$ -$ -$ -$ Issuance of capital lease 772,946 1,405,126 776,578 915,681 642,827 Issuance of bonds 10,250,000 (c)- - - - Insurance proceeds - - - - - Transfers in 4,380,329 6,103,845 9,568,234 10,017,935 9,915,944 Transfers out (3,222,095) (4,887,361) (8,537,830) (10,305,165) (13,433,026) Total other financing sources (uses) 12,181,180$ 2,621,610$ 1,806,982$ 628,451$ (2,874,255)$ Net change in fund balance 14,181,707$ 2,126,603$ 1,311,975$ (6,690,972)$ 6,970,253$ Debt service as a percentage of noncapital expenditures 21.18% 20.28% 23.61% 22.19% 19.19% (a) 2017 installment purchase revenue bond to construct and equip two parking decks, a stadium, conference facilities, a riverfront park, and certain roads, water, sewer, and related infrastructure (Series 2017B.) Also included is a $25,000 tax increment revenue bond. (b) In May 2017, the North Augusta Public Facilities Corporation entered into an installment purchase transaction. Proceeds from this transaction were also used to refinance the municipal center lease. (c) In March 2020, the City issued Series 2020 General Obligation Bonds in the amount of $10,250,000 for the purposes of defraying the costs incurred in connection with all or a portion of designing, developing, and construction of a new Public Safety Headquarters and related fire apparatus. Grant revenue Year Ending December 31 (modified accrual basis of accounting) Grant revenue Year Ending December 31 City of North Augusta, South Carolina Changes in Fund Balances, Governmental Funds Last Ten Fiscal Years 94 Year Ended December 31 (a) Tax Year Assessed Value Estimated Actual Value Assessed Value Estimated Actual Value Assessed Value Estimated Actual Value Tax Rate 2015 2014 70,710,810$ 1,442,916,363$ 20,984,447$ 158,860,422$ 91,695,257$ 1,601,776,785$ 74.21 2016 2015 73,065,987 1,490,975,824 21,623,421 163,697,704 94,689,408 1,654,673,528 74.21 2017 (b) 2016 79,819,959 1,628,796,572 26,336,665 199,378,794 106,156,624 1,828,175,366 70.50 2018 2017 82,341,248 1,680,245,695 27,375,296 207,241,635 109,716,544 1,887,487,330 73.50 2019 2018 83,448,499 1,702,840,127 31,654,277 239,635,180 115,102,776 1,942,475,307 73.50 2020 2019 111,102,458 (c)2,267,143,519 33,204,209 251,368,769 144,306,667 2,518,512,288 73.50 2021 2020 114,076,665 (c)2,327,834,832 40,594,219 307,314,023 154,670,884 2,635,148,855 73.50 2022 (b) 2021 128,916,969 (c)2,630,664,307 47,567,398 360,103,699 176,484,367 2,990,768,006 73.50 2023 2022 136,906,451 (c)2,793,696,725 54,000,383 408,803,897 190,906,834 3,202,500,622 75.50 2024 2023 144,307,500 (c)2,944,721,649 49,495,261 374,698,368 193,802,761 3,319,420,017 77.50 (b) Reassessment year, see Table VI (c) Includes real, merchants inventory, merchants furniture and fixtures, personal property taxes, and special assessments for parcels in the City's Municipal Improvement District (MID). Assessed value of real property less the special assessments in the MID totals $134,793,164. (a) The City of North Augusta uses different tax years for real and personal property taxes because on April 30, 1980, the S.C. General Assembly passed a law that provided for the billing and collection of personal property taxes on motor vehicles on a staggered basis according to expiration of the license tag. City of North Augusta, South Carolina Assessed Value and Estimated Actual Value of Taxable Property Last Ten Fiscal Years Source: City of North Augusta tax records TOTALREAL PROPERTY PERSONAL PROPERTY 95 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 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 2024 2023 77.50 -77.50 68.14 2.20 70.34 134.20 33.70 167.90 315.74 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 $1,000 of assessed valuation Tax Rate Limits: None Taxes Due: Personal: In the month preceding tag renewal by the S.C. State Highway Department Real and Merchants: April 30th Personal: N/A--Taxes on personal property paid in advance Taxes Delinquent: Real and Merchants: May 1st Discount Allowed: None Penalties: Real and Merchants: 15% Reassessment Years: Tax Years 2016, 2021 Uncollected taxes are turned over to the City Delinquent Tax Collector on June 1st, with authority to enforce collection by tax sale. (a) Because of the change mandated by State law noted in the footnote of Table V, the City of North Augusta uses different tax years for real and personal property taxes. City of North Augusta, South Carolina Direct and Overlapping Property Tax Rates Last Ten Fiscal Years City of North Augusta Overlapping Property Tax Rates County of Aiken Aiken County School District 96 2024 2015 Taxpayer Assessed Valuation (d) Rank Percentage of Total Assessed Valuation Assessed Valuation Rank Percentage of Total Assessed Valuation Dominion Energy (a)4,742,480$ 1 2.45% 3,031,790$ 1 3.31% Graybul Ironwood LLC 2,692,410 2 1.39% Wal-Mart, Inc. 2,254,200 3 1.16% 1,423,040 2 1.55% Leo@Augusta, LLC (b)2,118,250 4 1.09% Ackerman Greenstone North Augusta 1,439,090 5 0.74% Allnex Industries, Inc. (c)1,362,560 6 0.70% 1,035,610 6 1.13% SUSO 3 Augusta, LP 1,196,540 7 0.62% 1,087,920 5 1.19% Halocarbon Life Sciences, LLC 1,021,200 8 0.53% 1,185,670 3 1.29% SRP Federal Credit Union 980,390 9 0.51% 1,159,430 4 1.26% CVS SC Distribution, Inc. 887,840 10 0.46% 743,190 7 0.81% The Kroger Company 713,440 8 0.78% Bell South Telecommunications 521,520 9 0.57% Lowes Home Centers, Inc.492,490 10 0.54% TOTAL Taxable Assessed 18,694,960$ 9.65% 11,394,100$ 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 2024 (tax year 2023) 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 97 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 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%81,341 12,965,111 99.95% 2023 2022 14,413,466 14,394,526 99.87%9,403 14,403,929 99.93% 2024 2023 15,019,714 15,002,487 99.89%- 15,002,487 99.89% (a) Includes real, merchants inventory, merchants furniture and fixtures, personal property taxes, and special assessments for parcels in the City's Municipal Improvement District (MID). (b) Because of the change by State law noted in the footnote of Table V, the City of North Augusta uses different tax years for real and personal property taxes. (c) Reassessment year, see Table VI City of North Augusta, South Carolina Property Tax Levies and Collections Last Ten Fiscal Years Total Collections to Date Collected within the Current Year of Tax Levy Source: City of North Augusta tax records 98 Year Ended December 31 Total Revenues Gross Sales Total Number of Licenses Issued 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 2024 7,696,188 1,825,812,543 2,343 (a) Increase due to numerous one-time licenses for construction related to projects in Riverside Village. Source: City of North Augusta business license records City of North Augusta, South Carolina Business Licenses / Franchise Fees Last Ten Fiscal Years 99 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 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 2024 10,089 815 10,904 2,925 156 3,081 13,985 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 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 2024 12,078 675 12,753 978 31 1,009 13,762 Source: City of North Augusta utility billing records City of North Augusta, South Carolina Number of Utility Customers Last Ten Fiscal Years 100 Water Customers Customer Name Type of Business Rank Water Usage Rank Water Usage City of North Augusta Municipal Government 1 80,813,000 1 60,402,600 Halocarbon Chemicals, Inc.Manufacturing 2 59,469,000 2 52,360,400 Crowne Plaza Hotel 3 36,847,000 Allnex Industries, Inc.Manufacturing 4 29,479,200 3 44,228,200 Ambiopharm Pharmaceutical Manufacturer 5 23,586,300 Aiken County Schools School District 6 14,126,867 4 12,123,000 Plaza Place 2020, LLC Apartments 7 14,487,300 JARS at Breckenridge/Plaza Terrace Apartments 8 11,721,066 5 9,229,300 Graybul Ironwood, LLC Apartments 9 8,896,500 Trubild, LLC Mobile Home Park 10 7,095,600 6 7,325,000 (c) Pinecrest Apartments Apartments 8 5,252,400 Whispering Woods Apartments Apartments 7 5,872,200 (b) CIG Plaza Place LLC Apartments 9 5,024,300 (a) Silver Creek Valley Apartments 10 4,036,400 Wastewater Customers Customer Name Type of Business Rank Water Usage Rank Water Usage Edgefield County Water & Sewer Authority Sewer District Provider 1 751,902,000 1 606,014,000 Halocarbon Chemicals, Inc.Manufacturing 2 59,469,000 2 52,360,400 City of North Augusta Municipal Government 3 42,049,433 4 30,443,600 Allnex Industries, Inc Manufacturing 4 29,372,480 3 43,881,300 Crowne Plaza Municipal Government 5 29,273,930 JARS at Breckenridge/Plaza Terrace Apartments 6 11,947,400 6 9,141,903 Plaza Place 2020, LLC Apartments 7 11,272,400 Graybul Ironwood, LLC Apartments 8 8,842,150 National Healthcare Nursing Home Facility 9 7,460,003 9 5,896,700 Trubuild, LLC Mobile Home Park 10 7,404,730 7 7,068,700 (c) Aiken County Schools School District 5 10,188,600 Whispering Woods Apartments Apartments 8 7,224,900 (b) Pinecrest Apartments Apartments 10 5,786,200 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 2024 Annual Consumption 2015 Annual Consumption 2024 Annual Consumption 2015 Annual Consumption 101 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 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 - 1,992,029 14,929,000 1,403,910 - 91,833,939 26,117 3,516.25 2024 5,216,000 65,740,000 - 1,252,799 13,804,000 739,819 - 86,752,618 26,395 3,286.71 (c) 2020 General Obligation Bonds in the amount of $10,250,000 for the purposes of defraying the costs incurred in connection with all or a portion of designing, developing, and and construction of a new Public Safety Headquarters and related fire apparatus. (d) 2021 refunding bond to refund 2014 A and 2015 A SC Drinking Water Revolving Loan Fund serial bonds for the City's raw water storage facility and new water treatment plant. City of North Augusta, South Carolina Ratio of Outstanding Debt by Type Last Ten Fiscal Years Governmental Activities Business-type Activities (a) 2015 installment purchase revenue bond to construct and equip a parking garage, 2014A and 2015A SC Drinking Water Revolving Loan Fund serial bonds to construct a raw water storage facility and new water treatment plant. NOTE: The ratio of outstanding debt by type is expressed in per capita dollar amounts. Personal income figures are not available at the City level. Source: Population estimates provided by the City of North Augusta Planning and Development Department (b) 2017 installment purchase revenue bond to construct and equip two parking decks, a stadium, conference facilities, a riverfront park, and certain roads, water, sewer, and related infrastructure (Series 2017B.) Also included is a $25,000 tax increment revenue bond. 102 Year Ended December 31 General Obligation Bonds (GOB) Estimated Actual Taxable Value (1) of Property % of Estimated Actual Taxable Value of Property Population (2)Per Capita 2015 -$ 1,601,776,785$ 0.00% 22,568 -$ 2016 - 1,654,673,528 0.00% 22,932 - 2017 - 1,828,175,366 0.00% 23,275 - 2018 - 1,887,487,330 0.00% 23,444 - 2019 - 1,942,475,307 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 3,202,500,622 0.22% 26,117 264.73 2024 5,216,000 3,319,420,017 0.16% 26,395 197.61 Note: The City had no General Obligation Bond (GOB) debt prior to 2006. During 2006 the City issued its first GOB debt. The 2006 General Obligation Bonds were defeased in December of 2013 removing the City's financial obligation. (1) City of North Augusta tax records (2) The population for year 2010 is provided by the US Census Bureau. Population estimates for all other years are provided by the City of North Augusta Planning and Development Department. (3) On November 6, 2018, a favorable bond referendum was held in the City of North Augusta authorizing to the City to issue not exceeding $10,250,000 of general obligation bonds as part of a favorable Capital Projects Sales Tax referendum. These bonds were issued in 2020 to construct and equip a public safety headquarters and bond payments will be made from revenues collected from the capital projects sales tax. Last Ten Fiscal Years City of North Augusta, South Carolina Ratios of General Bonded Debt Outstanding 103 Jurisdiction Debt Outstanding @ December 31, 2024 Percent Applicable to City of North Augusta Amount Applicable to City of North Augusta Direct Debt City of North Augusta * 72,208,799$ 100.00% 72,208,799$ Overlapping Debt County of Aiken 35,588,751$ 20.83% 7,413,137$ Aiken County School District 161,595,000 20.83% 33,660,239 Sub-total - Overlapping Debt 197,183,751$ 20.83% 41,073,375$ Total 269,392,550$ 113,282,174$ property values. Applicable percentages were estimated by determining the percentage of the City's total taxable City of North Augusta, South Carolina Direct and Overlapping Governmental Activities Debt As of December 31, 2024 assessed value to Aiken County's total taxable assessed value. Source: Aiken County and Aiken County School District * 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 104 2015 2016 2017 2018 2019 Debt Limit 7,335,620$ 7,575,153$ 8,492,530$ 8,777,324$ 9,208,222$ Total net debt applicable to limit (a)- - - - - Legal debt margin 7,335,620$ 7,575,153$ 7,335,620$ 8,492,530$ 8,777,324$ Total net debt applicable to the limit as a percentage of debt limit 0.00%0.00%0.00%0.00%0.00% 2020 2021 2022 2023 2024 Debt Limit 11,544,533$ 12,373,671$ 14,118,749$ 15,272,547$ 15,504,221$ Total net debt applicable to limit - (b)- - - - Legal debt margin 11,544,533$ 12,373,671$ 14,118,749$ 15,272,547$ 15,504,221$ 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 $10,250,000 of general obligation bonds as part of a favorable Capital Projects Sales Tax referendum. These bonds were issued in 2020 to construct and equip a public safety headquarters and bond payments will be made from revenues collected from the capital projects sales tax. 105 Year Ended December 31 Total Operating Revenue Total Operating Expenses Net Revenue Available for Debt Service Revenue Bond Principal Revenue Bond Interest Total Debt Service Coverage Ratio 2015 9,120,970$ 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 2024 13,412,492 9,426,442 3,986,050 1,150,333 109,440 1,259,773 3.16 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 106 Year Population Personal Income (thousands of dollars) Per Capita Personal Income Unemployment Rate 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% 2023 177,130 9,544,303 53,883 3.0% Source: South Carolina Employment Security Commission Note 1 - All figures are for the County of Aiken, City of North Augusta statistics are not available Year 1940 2,629 49,916 1950 3,659 53,137 1960 10,348 81,038 1970 12,883 91,023 1980 13,593 105,625 1990 15,684 120,940 2000 17,574 142,780 2010 21,348 160,099 2020 23,845 172,895 Note 2 - Personal Income and Per Capita Personal Income figures are not available for 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. City of North Augusta County of Aiken County of Aiken, South Carolina (Note 1) Economic Statistics Last Ten Calendar Years (Note 2) 107 % of Total % of Total County County Employer Location Employees Rank Employment Employees Rank Employment Savannah River Site - see detail below (1)Out 13,130 1 17.94% 11,068 1 14.82% Aiken County Public Schools In / Out 3,361 2 4.59% 3,192 2 4.27% Bridgestone Americas (2)Out 2,167 3 2.96% 1,318 3 1.76% Kimberly-Clark Corp. Out 2,050 4 2.80% 1,250 4 1.67% Aiken Regional Medical Center Out 1,240 5 1.69% 1,200 5 1.61% Aiken County Government Out 1093 6 1.49% 896 6 1.20% Shaw Industries Out 972 7 1.33% 600 9 0.80% Advanced Glassfiber Yarn Out 800 8 1.09% 610 8 0.82% UPS Customhouse Brokerage Out 600 9 0.82% 490 11 0.66% City of Aiken Out 449 10 0.61% 443 12 0.59% Hubbell Power Systems Out 600 11 0.82% 380 13 0.51% Emerson Automation Solutions (b)Out 369 12 0.50%330 15 0.44% Autoneum North America, Inc.Out 362 13 0.49%226 19 0.30% The Calstar Group (a)Out 350 14 0.48%230 16 0.31% MTU America, Inc Out 330 15 0.45%305 17 0.41% PACTIV Corp.Out 330 16 0.45%213 20 0.29% CVS Distribution Center In 285 17 0.39% City of North Augusta In 261 18 0.36%243 18 0.33% Zeus Industrial Products Inc Out 260 19 0.36% BAE Systems, Inc. Out 253 20 0.35% Centerra Out 699 7 0.94% Medac In 500 10 0.67% TTX/Hamburg Industries, Inc.In 338 14 0.45% Source: Economic Development Partnership, Various Employers, and South Carolina Employment Commission Location: In city limits, Out of city limits (1) SRNS/SRR, including subcontractors 11,639 (2) Bridgestone Americas Tire Operation 1,667 and temporary construction workers Bridgestone Offroad 500 Centerra 713 2,167 Department of Energy 368 National Nuclear Security Administration 174 Savannah River Ecology Lab 123 US Forestry Service 83 Other Subcontractors 30 13,130 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 6,319 Columbia County, Georgia 1,713 Richmond County, Georgia 1,454 Barnwell County, South Carolina 613 Edgefield County, South Carolina 434 Orangeburg County, South Carolina 138 Bamberg County, South Carolina 82 Lexington County, South Carolina 255 Other 931 11,939 (a) Formerly Carlisle Tire and Wheel Company (b) Formerly ASCO Valve, Inc. City of North Augusta, South Carolina Principal Employers Current Year and Nine Years Ago 2024 2015 108 Fund / Function / Department 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 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 1.0 1.0 1.0 2.0 2.0 2.0 2.0 2.0 2.0 Information Technology 0.0 1.5 (a) 1.5 1.5 4.0 (e) 4.0 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 0.0 0.0 Finance 5.5 4.0 4.0 4.0 4.0 4.0 4.0 4.0 4.0 4.0 Human Resources 0.0 2.0 (b) 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 Building Standards 4.5 4.5 4.5 4.5 4.5 4.5 4.5 4.5 5.25 6.25 Planning and Development 2.0 2.0 2.5 2.5 3.5 3.5 4.5 6.0 6.0 7.0 City Buildings 3.0 0.0 0.0 0.0 0.0 0.0 0.0 2.0 2.0 2.0 Property Maintenance 13.0 14.0 14.0 14.0 15.0 18.0 18.0 18.0 18.0 18.0 Public Safety 84.0 88.0 90.0 90.0 91.0 92.0 92.0 93.0 94.0 98.0 Public Works Engineering 1.5 2.5 2.5 2.5 3.0 3.0 3.0 2.75 3.00 3.00 Streets & Drains 10.0 10.0 10.0 10.0 10.0 10.0 10.0 11.0 11.0 10.0 Parks, Recreation & Tourism Recreation 5.0 5.0 4.0 4.0 4.0 4.0 7.0 8.0 8.0 8.0 Parks 5.0 5.0 5.0 5.0 5.0 5.0 6.0 7.0 7.0 8.0 Community Center 2.0 2.0 2.0 2.0 2.0 2.0 1.0 1.0 1.0 1.0 Tourism 0.0 3.0 (f) 3.0 3.0 3.0 3.0 3.0 1.0 1.0 1.0 RVP Activities 6.0 6.0 7.0 7.0 7.0 7.0 5.0 5.0 5.0 4.5 Sub-total 146.5 152.5 155.0 155.0 162.0 166.0 168.0 173.25 174.25 179.75 Stormwater Fund Stormwater 4.5 5.5 5.0 5.0 5.5 6.0 6.5 6.25 6.25 6.25 Sub-total 4.5 5.5 5.0 5.0 5.5 6.0 6.5 6.25 6.25 6.25 Riverfront Central Core Dev. Fund Tourism 0.0 0.0 1.0 (d) 1.0 1.0 1.0 1.0 1.0 1.0 2.5 Sub-total 0.0 0.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 2.5 Sanitation Fund Public Services Information Technology 0.0 0.5 (c) 0.5 0.5 0.0 (e) 0.0 0.0 0.0 0.0 0.0 Sanitation 26.0 25.5 26.5 26.5 25.5 26.5 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 5.5 6.5 Sub-total 34.5 34.5 35.5 35.5 34.0 35.0 35.0 35.0 32.0 33.0 Water & Wastewater Fund Public Utilities Information Technology 0.0 2.0 (a) 2.0 2.0 0.0 (e) 0.0 0.0 0.0 0.0 0.0 Utilities Finance 5.0 4.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0 Utilities Administration 7.5 7.5 7.5 7.5 6.5 6.5 6.5 6.5 6.5 6.5 Water Operations 8.0 8.0 8.0 8.0 9.0 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 11.0 11.0 11.0 11.0 11.0 11.0 Sub-total 38.5 39.5 40.5 40.5 39.5 39.5 39.5 39.5 39.5 39.5 TOTAL 224.0 232.0 237.0 237.0 242.0 247.5 250.0 255.0 253.0 261.0 (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 109 Function / Program 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 General Government Size of City (square miles) 21.150 21.172 21.177 21.180 21.970 22.210 22.240 22.310 22.355 22.484 Annexations approved by City Council - 2113117365 Building permits issued 648 668 689 703 779 755 846 1,022 807 793 Plumbing permits issued 373 381 296 358 389 420 496 542 405 411 Mechanical permits issued 417 520 455 494 561 551 612 619 496 505 Electrical & Solar permits issued 434 482 813 618 523 582 725 642 711 713 Business licenses issued 1,849 1,877 2,017 2,420 2,254 2,302 2,192 2,208 2,319 2,343 Police Total calls for service 40,567 37,929 37,322 38,112 40,952 32,520 32,847 35,578 34,800 36,245 Criminal arrests 1,766 1,572 1,338 885 1,127 975 1,031 778 638 655 Incident reports (police action required)3,627 3,888 3,966 3,797 3,356 3,035 3,105 3,497 2,811 1,871 Accident reports (collisions)1,190 1,187 1,267 1,390 1,191 1,038 1,182 1,162 1,175 1,069 Traffic offenses (resulting in fine)8,809 7,933 8,261 8,490 9,057 7,677 7,811 7,484 8,923 9,564 Drug offenses 177 210 372 214 154 147 153 134 104 59 Burglaries reported 97 132 93 94 76 59 67 62 64 33 Fire Actual fire calls - Inside City 114 105 83 377 384 86 399 370 78 521 Actual fire calls - Outside City 7 31 32 56 26 36 21 31 17 52 Solid Waste Garbage Refuse Collected (tons) - Residential 10,227 9,334 9,554 9,473 8,613 10,471 11,676 10,793 13,230 13,334 Garbage Refuse Collected (tons) - Commercial 4,723 5,502 6,082 5,647 6,108 6,412 6,362 5,780 3,219 2,987 Recyclables Collected (tons)6,656 5,047 5,437 5,507 4,312 5,104 4,510 2,181 2,679 2,553 Property Maintenance Tree trimming hours 1,378 3,516 1,338 2,050 1,202 2,073 1,963 2,677 2,383 2,334 Mowing hours 10,944 12,892 14,036 10,368 11,025 12,651 12,032 11,215 13,526 10,468 Planting hours 1,726 1,388 1,145 1,504 754 1,542 913 1,454 1,637 1,711 Streets and Drains Pothole patching / asphalt tons 341 464 142 132 169 227 225 232 232 151 Curb, gutter & sidewalk repair / CY 472 292 400 294 402 441 414 357 183 62 Storm drain inlets cleaned 419 619 848 664 612 616 537 687 524 980 Street sweeping / miles 1,339 822 574 563 588 785 697 1,424 416 362 Parks and Recreation Baseball / Number of Players 779 687 592 576 617 466 578 634 606 526 Youth Softball / Number of Players 238 234 240 221 211 133 207 276 311 264 Spring Soccer / Number of Players 484 532 585 580 567 262 578 667 722 671 Fall Soccer / Number of Players 552 552 493 540 540 470 578 514 548 584 Youth Basketball / Number of Players 640 615 652 577 647 492 701 792 699 703 Youth Football / Number of Players 280 239 219 267 269 202 313 337 350 321 Youth Cheerleading / Number of Participants 113 117 182 164 170 142 196 240 252 261 Youth Volleyball / Number of Participants 94 73 86 82 95 105 132 162 179 211 Water New water taps 77 184 130 128 103 119 89 210 132 156 Water lines installed / L.F.2,599 913 4,115 6,638 6,432 3,230 765 7,230 6,385 3,012 Water line leaks repaired 23 27 16 19 18 9 10 26 18 31 Average daily water pumped 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 3,595,000 Daily peak demand (gallons per day)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 7,347,000 Peak day 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 7/3/2024 Wastewater New sewer taps 158 212 154 197 187 208 284 252 185 209 Wastewater lines installed / L.F.1,970 1,259 6,208 8,423 5,077 2,360 765 5,847 11,745 6,219 Wastewater lines repaired / L.F.680 556 252 16 47 32 34 64 26 15 Wastewater lines cleaned / L.F.70,610 57,320 34,516 49,432 67,416 41,057 30,273 27,310 41,197 52,431 City of North Augusta, South Carolina Operating Indicators by Function/Program Last Ten Fiscal Years Source: City of North Augusta's Year-end Departmental Reports Fiscal Year 110 Function / Program 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Public Safety Number of Stations 3 333333333 Number of Public Safety Officers 61 62 64 65 65 65 66 67 71 71 Number of Volunteer Firemen 20 20 25 20 20 20 20 20 20 20 Insurance Rating (ISO)Class 2 Class 2 Class 2 Class 2 Class 2 Class 2 Class 2 Class 2 Class 2 Class 2 Signalized Intersections 31 31 32 32 32 32 34 35 35 35 Number of Fire Hydrants Inside City 812 814 816 848 848 852 853 860 864 870 Outside City 149 149 149 149 149 150 150 163 163 163 Public Works Miles of Streets 141.91 143.77 144.2 144.9 145.75 147.75 149.86 150.85 152.54 153.53 Street Lights 1,817 1,841 1,859 1,980 2,000 2,040 2,075 2,097 2,142 2,154 Parks, Recreation & Tourism Number of Parks 22 22 22 22 22 23 23 23 23 23 Park Acreage 550 550 550 550 550 527 527 527 527 527 Miles of Paved Greenway 14.0 14.0 14.0 14.0 14.0 14.0 14.0 14.1 14.1 14.1 Number of Picnic Shelters 9 999999999 Baseball / Softball Diamonds 10 10 10 10 10 10 10 10 10 10 Football / Lions Field 2 222222222 Soccer Fields 6 666666666 Tennis Courts 11 11 11 11 11 15 15 15 15 15 Multi-purpose Fields 3 333333333 Community Center 1 111111111 Activities Center 1 111111111 Water Miles of Water Lines 228.68 229.07 229.84 231.09 232.3 232.74 232.88 234.25 235.45 236.02 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 229.20 229.57 230.74 232 232.96 233.4 235.71 236.17 238.39 239.56 Stormwater Miles of Storm Sewer 60.73 68.01 68.47 69.21 70.04 71.66 73.43 74.38 75.98 77.07 (a) In 2014, SCDHEC reduced the City's maximum pumping capacity to 12,000,000 GPD Source: City of North Augusta's Year- City of North Augusta, South Carolina Capital Asset Statistics by Function/Program Last Ten Fiscal Years Fiscal Year 111 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 $9.98 $13.88 $5.85 $21.91 $27.761 Inch 6,000 gallons 3.90 15.49 19.39 5.85 32.83 38.68 1 1/2 Inch 9,000 gallons 3.90 20.65 24.55 5.85 43.04 48.89 2 Inch 15,000 gallons 3.90 31.08 34.98 5.85 63.71 69.56 3 Inch 24,000 gallons 3.90 46.89 50.79 5.85 95.00 100.85 4 Inch 30,000 gallons 3.90 57.42 61.32 5.85 115.87 121.72 6 Inch 90,000 gallons 3.90 162.85 166.75 5.85 324.64 330.49 Volume of Consumption Debt Service O & M Total Debt Service O & M Total Next 10,000 gallons $0.15 $1.30 $1.45 $0.30 $2.60 $2.90 Next 27,000 gallons 0.15 1.25 1.40 0.30 2.50 2.80 Next 160,000 gallons 0.15 1.20 1.35 0.30 2.40 2.70 All Additional Usage 0.15 1.10 1.25 0.30 2.20 2.50 Debt Service O & M Total Debt Service O & M Total $2.53 $8.69 $11.22 $5.06 $9.69 $14.75 Volume of Consumption Debt Service O & M Total Debt Service O & M Total $0.90 $3.60 $4.50 $1.52 $3.64 $5.16 All Additional Usage 0.73 2.85 3.58 0.73 2.85 3.58 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, 2024 Residential Charge (Inside City only)$6.00 per month Multi-family Charge (Inside City only) $4.50 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, 2024 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, 2024 Volume Rates / Outside City Limits Sanitation Service Charges in effect December 31, 2024 Residential (monthly) Volume Charge (per cubic yard) City of North Augusta, South Carolina Enterprise Funds Rates and Charges Rates / Charges in effect December 31, 2024 Base Rates Base Rates / Outside City Limits Volume Rates / Inside City Limits Volume Rates / Outside City Limits 112 10/1/2024 1/1/2024 10/1/2024 1/1/2024 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 1/1/2024 Stormwater Management Service charge increased by $1.00 per equivalent residential unit (ERU) per month. 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) O & M Minimum Base Rate increased by $1.00 per month inside city limits and $2.00 per month outside city limits History of Sanitation and Recycling Charge Changes (past 10 years) O & M Minimum Base Rate increased by $.50 per month inside and outside city limits. O & M Volume Rate increased by $.25 per 1,000 gallons inside and outside city limits (PSA) 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 and Debt Service Rate increased in total by $0.15 per 1,000 gallons inside and outside city limits (PSA) O & M Volume Rate increased by $.20 per 1,000 gallons inside and outside city limits. O & M Volume Rate increased by $.20 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, 2024 O & M Volume Rate Increased by $1.00 per 1,000 gallons inside and outside city limits 113 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 Honorable Mayor and Members of the City Council City of North Augusta, South Carolina We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of North Augusta, South Carolina (the “City”) as of and for the year ended December 31, 2024, 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 24, 2025. 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. 114 mjcpa.com 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 24, 2025 115 508 HAMPTON STREET, 1ST FLOOR • COLUMBIA, SOUTH CAROLINA 29201 • 803-799-5810 • FAX 803-799-5554 • www.mjcpa.com MEMBERS OF THE AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS Independent Auditor’s Report on Compliance for Each Major Federal Program; Report on Internal Control over Compliance and Required by the Uniform Guidance Honorable Mayor and Members of the City Council City of North Augusta, South Carolina Report on Compliance for the Major Federal Program Opinion on the 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, 2024. 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 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, 2024. 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. 116 mjcpa.com 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. 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. 117 mjcpa.com 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 24, 2025 118 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 the Treasury Direct: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds 21.027 1505-0271 $ 7,295,018 $ - Total U.S. Department of the Treasury 7,295,018 - U.S. Department of Justice Passed through from the S.C. Governor's Office: Bulletproof Vest Partnership Program 16.607 N/A 5,859 - Total U.S. Department of Justice 5,859 - 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 7,623 - Police Traffic Services Grant 20.600 N/A 83,928 - Police Traffic Services Grant 20.600 N/A 27,812 - Police Traffic Services Grant 20.600 N/A 22,520 - Total Highway Safety Cluster 141,883 - . Total U.S. Department of Transportation 141,883 - Total Expenditures of Federal Awards $ 7,442,760 $ - FOR THE YEAR ENDED DECEMBER 31, 2024 Passed Through to 119 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. The information in the schedule is presented in accordance with the 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). 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 qualified as a low-risk auditee for the fiscal year ended December 31, 2024. 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, 2024. 120 CITY OF NORTH AUGUSTA, SOUTH CAROLINA SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR THE FISCAL YEAR ENDED DECEMBER 31, 2024 SECTION I SUMMARY OF AUDIT RESULTS Financial Statements Type of report the auditor issued on whether the financial statements audited were prepared in accordance with GAAP: Unmodified Internal control over financial reporting: Material weaknesses identified? Yes X No Significant deficiencies identified? Yes X None Reported Noncompliance material to financial statements noted? Yes X No Federal Awards Internal control over major programs: Material weaknesses identified? Yes X No Significant deficiencies identified? Yes X No Type of auditor’s report issued on compliance for major programs: Unmodified Any audit findings disclosed that are required to be reported in accordance with 2 CFR 200.516(a)? Yes X No Identification of major programs: Assistance Listing Number Name of Federal Program or Cluster U.S. Department of the Treasury – 21.027 COVID-19 Coronavirus State and Local Fiscal Recovery Funds Dollar threshold used to distinguish between Type A and Type B programs: $750,000 Auditee qualified as low-risk auditee? Yes X No 121 CITY OF NORTH AUGUSTA, SOUTH CAROLINA SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR THE FISCAL YEAR ENDED DECEMBER 31, 2024 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. 122