CAFR Fiscal Year 2013-2014

Transcription

City of Abbeville, South Carolina
Comprehensive Annual Financial Report
Year ended October 31, 2014
Issued by City of Abbeville
Financial Department
City of Abbeville
Contents
Page
Introductory Section
Letter of Transmittal
i-v
Listing of Principal Officials
vi
Organization Chart
vii
GFOA Certificate of Achievement
viii
Financial Section
Independent Auditor’s Report
1
Management’s Discussion and Analysis
4
Basic Financial Statements
Government-wide Financial Statements
Statement of Net Position
12
Statement of Activities
13
Fund Financial Statements
Balance Sheet - Governmental Funds
14
Reconciliation of Total Governmental Fund Balances to
Net Position of Governmental Activities
15
Statement of Revenues, Expenditures and Changes in
Fund Balances - Governmental Funds
16
Reconciliation of the Statement of Revenues, Expenditures
and Changes in Fund Balances of Governmental Funds to
the Statement of Activities
17
Statement of Net Position - Enterprise Fund
18
Statement of Revenues, Expenses and Changes in Fund
Net Position - Enterprise Fund
19
Statement of Cash Flows - Enterprise Fund
20
Statement of Fiduciary Assets and Liabilities
21
Notes to Financial Statements
22
City of Abbeville
Contents, Continued
Page
Required Supplementary Information
Budgetary Comparison Schedule
Schedule of Revenues, Expenditures and Changes in Fund Balance Budget and Actual - General Fund
46
Schedule of Funding Progress - Other Post Employment Benefits
47
Other Supplementary Information
General Fund
Schedule of Expenditures by Department - Budget and Actual
48
Other Nonmajor Special Revenue and Capital Project Funds
Combining Balance Sheet
50
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances
51
Enterprise Fund
Statement of Revenues, Expenses, and Changes in Fund Net Position
52
Agency Fund
Statement of Changes in Assets and Liabilities
Fireman’s Insurance and Inspection
53
Schedule of Fines, Assessments and Surcharges
Statistical Section (unaudited)
54
Schedule
Financial Trends:
Net Position by Component
1
55
Changes in Net Position
2
56
Fund Balances of Governmental Funds
3
58
Changes in Fund Balances, Governmental Funds
4
59
Governmental Activities Tax and Fee Revenues by Source
5
61
Assessed Value and Estimated Actual Value of Taxable Property
6
62
Property Tax Rates – Direct and Overlapping Governments
7
63
Principal Property Taxpayers
8
64
Property Tax Levies and Collections
9
65
Revenue Capacity:
City of Abbeville
Contents, Continued
Schedule
Page
Electric, Water and Sewer Rates
10
66
Number of Customers by Utility Type
11
67
Utilities Sold by Type of Customer
12
68
Electricity Produced/Purchased and Consumed
13
69
Water Produced and Consumed and Wastewater Treated
14
70
Principal Electric Users in Service Area
15
71
Principal Water Users in Service Area
16
72
Principal Sewer Users in Service Area
17
73
Ratios of Outstanding Debt by Type
18
74
Ratios of General Bonded Debt Outstanding
19
75
Direct and Overlapping Governmental Activities Debt
20
76
Legal Debt Margin Information
21
77
Revenue Bond Coverage - Combined Utility System Bonds
22
78
Demographic and Economic Statistics
23
79
Principal Employers
24
80
Full-time Equivalent City Government Employees by Function
25
81
Number of Employees by Identifiable Activity
26
82
Operating Indicators by Function
27
83
Capital Asset Statistics by Function
28
85
Statistical Section (unaudited), Continued
Utility Information:
Debt Capacity:
Demographic and Economic Information:
Operating Information:
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
86
Schedule of Findings and Responses
88
INTRODUCTORY SECTION
FRAN L. STRICKLAND
Finance Director/CFO
April 14, 2015
Honorable Mayor, Members of City Council, City Manager,
and Citizens of the City of Abbeville, South Carolina:
State law requires that all local governments publish within six months of the close of each fiscal year a complete set
of financial statements presented in conformity with generally accepted accounting principles (GAAP) and audited in
accordance with generally accepted auditing standards by a firm of licensed certified public accountants. This
comprehensive annual financial report of the City of Abbeville (City) is published to fulfill that requirement for the
fiscal year ended October 31, 2014.
This report consists of management’s representations concerning the finances of the City. Consequently, management
assumes full responsibility for the completeness and reliability of all of the information presented in this report. To
provide a reasonable basis for making these representations management of the City has established a
comprehensive internal control framework that is designed both to protect the government's assets from loss, theft,
or misuse and to compile sufficient reliable information for the preparation of the City's financial statements in
conformity with GAAP. Because the cost of internal controls should not outweigh their benefits, the City's
comprehensive framework of internal controls has been designed to provide reasonable rather than absolute
assurance that the financial statements will be free from material misstatement. As management, we assert that, to
the best of out knowledge and belief, this financial report is complete and reliable in all material respects.
The City's financial statements have been audited by Elliott Davis Decosimo, LLC, a firm of licensed certified public
accountants. The goal of the independent audit was to provide reasonable assurance that the financial statements of
the City for the fiscal year ended October 31, 2014, are free of material misstatement. The independent audit
involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statement
presentation; assessing the accounting principles used and significant estimates made by management; and evaluating
the overall financial statement presentation. The independent auditor concluded, based upon the audit, that there
was a reasonable basis for rendering an unmodified opinion that the City's financial statements for the fiscal year
ended October 31, 2014, 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.
GAAP requires that management provide a narrative introduction, overview, and analysis to accompany the basic
financial statements in the form of Management's Discussion and Analysis (MD&A). This letter of transmittal is
designed to complement MD&A and should be read in conjunction with it. The City of Abbeville MD&A can be found
immediately following the report of the independent auditors.
Profile of the Government
The City, chartered in 1756 and incorporated in 1832, is located in the southwestern region of South Carolina and is
the last major city along the S.C. Highway 72 corridor west to the Georgia state line and Lake Russell. The City of
Abbeville is the largest city in Abbeville County and serves as the county seat. The City currently occupies a land area
of 5.89 square miles and serves a population of approximately 5,200. The City of Abbeville is empowered to levy a
property tax on both real and personal properties located within its boundaries. It also is empowered by state statute
to extend its corporate limits by annexation, which occurs periodically when deemed appropriate by governing
council.
The City of Abbeville operates under the council-manager form of government. Policy-making and legislative
authority are vested in a governing council consisting of the mayor and eight other members. The governing council is
responsible, among other things, for passing ordinances, adopting the budget, appointing committees, and hiring the
government's manager, municipal judge and city attorney. The government's manager is responsible for carrying out
policies and ordinances of the governing council, for overseeing the day-to-day operations of the government, and for
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appointing the heads of various departments. The Council is elected through a non-partisan election process. Council
members serve four-year staggered terms, with four council members elected every two years. The mayor is elected
to serve a four-year term. The eight members of council are elected from single member districts and the mayor runs
at large. In March 2004, the council approved a change from the plurality method of election to the run-off method.
The City provides a full range of services, including: police and fire protection, sanitation services, the maintenance of
streets, sidewalks, and storm drainage, planning and zoning, community and economic development, and recreation
activities. In addition to general government activities, the City provides electrical generation and distribution, water
treatment and distribution, and wastewater collection and treatment. The City owns and operates the hydroelectric
plant at Lake Secession and utilizes its excess potable water production capacity by selling finished water to the town
of Calhoun Falls, a municipality of 2,300 population, located approximately 13 miles west of Abbeville. The 16-inch
transmission line has the capacity of 4 million gallons per day. The waterline follows the route of Highway 72 and can
provide service to all contingent sites between the two municipalities. In addition, a sixteen-inch waterline between
Abbeville and the town of Due West allows the City to provide wholesale water to the Donalds-Due West Water
Authority (DDWWA). The line connects to the City’s 750,000 gallon water tank at the Lakelands Commerce Park.
The annual budget serves as the foundation for the City's financial planning and control. All departments of the City
of Abbeville are required to submit requests for appropriations to the City Manager in the Summer of each year. The
City Manager uses these requests as the starting point for developing a proposed budget. The City Manager then
presents this proposed budget to the council for review. The council is required to hold a public hearing on the
proposed budget and to adopt a final budget by no later than October 31, the close of the City's fiscal year. The
appropriated budget is prepared by fund and department. Budgetary control (that is, the level at which expenditures
cannot legally exceed the appropriated amount) is maintained by the City Manager at the department level. The City
Manager is authorized to transfer appropriations within departments, but no such transfers shall be used to increase
the total appropriation within any fund. The City Manager may execute all documents related to the lease purchase
financing of equipment authorized in the 2015 Budget and shall have delegated authority to “assign” and “unassign”
fund balance which shall be intended for specific purposes. Budget-to-actual comparisons are provided in the report
for each individual governmental fund for which an appropriated annual budget has been adopted. For the general
fund, this comparison is presented as part of the basic financial statements for the governmental funds.
Factors Affecting Financial Conditions
The information presented in the financial statements is perhaps best understood when it is considered from the
broader perspective of the specific environment within which the City operates.
Local Economy
The City of Abbeville is located within a fifty-mile radius of three major interstates. Interstate Highway 85 is located
approximately 35 miles to the north, I-26 is approximately 35 miles to the east, and I-20 is approximately 50 miles to
the south of the City. Located within a 25 to 35 miles radius is Hickory Knob State Park, which attracts visitors who
contribute to trade in the area and Savannah Lakes Village, a planned resort community with some 4,000 sites. As
such, the City of Abbeville is able to reap significant economic benefits beyond those provided by its modest
population.
The City hosts the Abbeville Opera House, which, along with the Historic District, is a significant attraction in the
region. Approximately 34,000 tickets are sold to sell-out crowds annually in the elegant, turn-of-the-century setting.
Frequently, visitors will combine an afternoon and evening of dinner, shopping, a play and then dessert and coffee
afterwards. Tourists are also drawn to the historic aspects of the city as Abbeville claims to be the birthplace and
deathbed of the confederacy purporting that on May 2, 1865, Jefferson Davis held the last meeting of the Confederate
War Council at the Burt Stark Mansion which is now a national historic landmark. Other significant historical sites
include the Trinity Episcopal Church, built in 1860, the Cresell Log Cabin, and the Belmont Inn, a renovated hotel
originally constructed in 1902, as well as many other historically designed buildings and homes.
Abbeville is part of the South Carolina Heritage Corridor in which several communities pool their resources to
promote the area through stewardship of natural, cultural and historic resources. The Corridor runs from the
mountains through the state to the sea and in October, 1996, won designation as a “National Heritage Area” under
the Parks Bill making it one of only fourteen in the country.
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The town square portrays a quaint Charleston style façade as each of the stores have been renovated over the years
to resemble the original look at the turn of the century. A variety of businesses provide locals and tourists with a
myriad of gift shops, antique stores, and restaurants in the square area. The historic Belmont Inn is a focal point of the
square.
The county hospital is located in the City along with elementary, middle, and high school facilities as well. Piedmont
Tech, a two year college located in Greenwood, fifteen miles away, owns a satellite facility for higher and continuing
education within the City of Abbeville. Two four-year colleges, are located within a fifteen minute drive. Erskine
College and Seminary, located in Due West, is a private liberal arts institution and seminary. Lander University, located
in Greenwood, is a state supported college. Both host fine arts series, which complements the cultural atmosphere of
the area.
Abbeville is home to several industries including Sage Automotive Interiors (formerly Milliken) which has two plants in
the area, one of which is located inside the city limits. Along with many other national industries, two international
companies reside just outside the city limits one being Italian manufacturer, Prysmian Cable (formerly Pirelli Cable),
and Flexible Technologies, an English company who has its United States headquarters office located here.
Prysmian is a global leader in power and telecommunication cables and systems. In 2008 Prysmian invested $35
million to expand its manufacturing operations at the Abbeville location. The facility houses the Vertical Continuous
Vulcanization process in a 325 foot tower adjacent to its existing medium and low voltage power cable manufacturing
facility. This expansion allows the company to produce high and extra-high voltage power cables and further
reinforces its market position in North America.
Flexible makes hosing and rigid tubing to heat and move liquids in airplanes, medical devices and other industrial
machines.
Long-term Financial Planning
Electric System Upgrades – In 2011 Southeastern Engineers drafted a plan to upgrade the City’s entire electric system
over the next 8-10 years from a 4 kV system to a 12 kV system to better serve existing customers and to have the
ability to serve a growing electric load as the community grows. In 2012 the City issued $3.5 million in debt to fund the
initial phases of the project. A new 44kV breaker between the City and the Hydro Dam was installed in late 2012 and
commissioned in 2013. Construction was completed in 2012 on a new diesel generator at the hydro plant. The new
generator is prime rated at 1360kW and will be used primarily for peak shaving capacity. Two additional 44kV
breakers were installed and commissioned in 2014 to sectionalize transmission within the City and reduce the effect
of outages. Construction began in 2013 on the Vienna Street Substation, which will ultimately provide the main point
of distribution for all of the City’s electric circuits. The substation increases system voltage and will serve the City’s
entire electric load as circuits are converted over to Vienna Street. Construction continued throughout 2014 and by
the end of that year the substation was substantially complete and two circuits leading out of the station had been
converted for the higher voltage. Through circuit conversion, older electric substations will eventually be
decommissioned which will save on maintenance and capital repairs that are needed to maintain electric substations.
SCADA System – In 2014 a SCADA (Supervisory Control and Data Acquisition) system was installed as part of the
electrical distribution upgrade. The SCADA system will allow real time monitoring and substation and distribution data
points including metering data, alarms, historical data, and will provide for remote control of system components.
Fire Department Building – In 2010 a bond referendum was approved for the issuance of $1.5 million in debt for the
acquisition of land and to construct a new fire department complex. Acquisition of the site was completed in 2012.
Improvements to the site were made in 2014.
Zoning Ordinance and Comprehensive Plan Revision – The City contracted with the Upper Savannah Council of
Governments to assist with the revision of the Comprehensive Plan and the Zoning Ordinance. The revision of the
Comprehensive Plan is required by state law, and the Zoning Ordinance update is needed to provide a document that
encourages quality and organized growth that enhances Abbeville. The plan was completed and the ordinance
adopted in 2012.
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Relevant Financial Policies
The investment goal of the City is to maintain adequate cash to meet current obligations and to invest in those legal
securities that maximize earnings and protect principal. Monies that are not required on a short-term basis are
invested in compliance with the guidelines of the South Carolina Code of Laws 6-5-10. The City maintains interest
bearing checking accounts to maximize its interest earning capability on funds required to meet short-term
operational expenses. Periodic reviews of deposits are made with financial institutions used by the City to ensure that
deposits over $250,000 (insured limit of federal depository insurance) are collateralized. Cash available for investing
during the year was invested in obligations of the U.S. government and its agencies, and the State of South Carolina
Local Government Investment Pool.
Major Initiatives
Strategic Plan – In 2014 the City began the process of developing a formal strategic plan. The blueprint will provide a
management tool to create direction and focus for the City’s future. City leaders are working to prioritize initiatives
that will ensure the City meets the needs of its citizens in an ever changing environment and works to stimulate a
vibrant economy. The plan will provide a shared vision and clarity about its core purpose, core values, long-range
vision, and mission thus offering an environment of cohesiveness between management, employees, citizens and
external stakeholders.
Wilson Hill Park – The City is working to enhance Wilson Hill Park located off Washington Street (SC 203) in Abbeville.
The park use has been limited to a basketball court and green space. The capital plans for the park include grading for
an area for a new picnic shelter, a new parking lot, and an area for new basketball courts. The picnic shelter will be an
approximate 25’x40’ pre-engineered metal building built on a slab concrete foundation. The parking lot will include
an entrance from Washington Street into the interior of the park with approximately 25 spaces on an asphalt surface.
The new basketball courts will be built to replace the old deteriorated courts and to relocate the courts to a separate
area away from the picnic shelter and passive green space. The city plans for funding from the Hospitality Tax Fund
and from grant funding from the Parks and Recreation Development Fund administered by the South Carolina
Department of Parks, Recreation, and Tourism.
Hydro Electric Plant Bridge Replacement – In 2014 Goodwin, Mills and Cawood Engineering completed a Preliminary
Engineering Report to study the replacement of a portion of the bridge that crosses the dam structure at the Hydro
Electric Plant. This replacement is needed due to the poor condition of the existing bridge. Although the bridge does
not directly have effect on dam safety, the bridge is used for debris removal from the lake and dam safety inspections.
The report provided the City with possible alternatives, a cost estimate and construction schedule. The bridge
replacement will be included in a future budget year.
Streetscape Improvement Projects – The City was awarded grant funds for several streetscape improvement projects
over the last five years. Washington Street and Trinity Street, a brick paved street, were completed in 2009 and 2010
respectively. In addition to the streetscape project, the City also renovated the historic Livery Stable on Trinity Street
which serves as a multi-use facility that can host events such as private parties, farmer’s markets, and special events.
The Trinity Street Project was funded by the newly adopted 2% Hospitality Tax. The renovation of the Livery Stable
utilized funding from a National Heritage Corridor Grant awarded in 2008, with the remainder being generated from
general revenues and the Hospitality Tax. In 2011 the City completed a renovation of the Court Square at a cost of
$650,000 funded by a $500,000 community enrichment grant from the SC Department of Commerce, the Hospitality
Tax and Public Utilities Funds. The project included underground utilities, new curbing and sidewalks, updated
landscaping, brick repairs on the Square, period style lamp posts, and greatly improved handicapped access. In 2012
the City completed an additional streetscape enhancement project along South Main Street from the Square to
Magazine Street. Funding for the project was provided by an additional $500,000 community enrichment grant. A
streetscape project on South Main Street from Magazine Street to Highway 72 was begun in 2014.
Piedmont Technical College Project – In 2012 Piedmont Technical College announced its intention to construct a new
multi-million dollar satellite campus to be located within the city limits of Abbeville. The City completed construction
of the required utility infrastructure which included sewer, water, electric, and campus lighting to serve the campus in
the fall of 2013. The college opened for classes in January 2014. The expansion will also allow the City to provide
sewer service to additional development along Highway 72.
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Awards and Acknowledgements
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of
Achievement for Excellence in Financial Reporting to the City of Abbeville for its comprehensive annual financial
report for the fiscal year ended October 31, 2013. The Certificate of Achievement is a prestigious national award
recognizing conformance with the highest standards for preparation of state and local government financial reports.
To be awarded a Certificate of Achievement award, a governmental entity must publish an easily readable and
efficiently organized comprehensive annual financial report, with contents which conform to GFOA program
standards. Such reports must satisfy both generally accepted accounting principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year. The Certificate awarded for fiscal year ended 2013
marks the twenty third consecutive year the award has been received by the City of Abbeville. We believe that this
comprehensive annual financial report conforms to the Certificate of Achievement Program requirements and we are
submitting it to the GFOA to determine its eligibility for a certificate.
The preparation of the comprehensive annual financial report on a timely basis was made possible by the dedicated
service of the entire staff of the Administrative Services Department as well as the City's independent auditors, Elliott
Davis Decosimo, LLC. Their assistance provided in the preparation of this report is sincerely appreciated.
In closing, without the guidance, leadership, and support of the City Manager, Mayor, and City Council, preparation of
this report would not have been possible.
Respectfully submitted,
Fran L. Strickland
Finance Director/CFO
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City of Abbeville
Listing of Principal Officials
October 31, 2014
MAYOR
Sarah J. Sherwood
CITY COUNCIL MEMBERS
Annetta F. Thomas
H. Doyle Kidd
S. Delano Freeman
Bertha D. Crawford
Augustus E. Wilson
Franklin Cape
Joshua B. Baughman
Spencer G. Sorrow
CITY MANAGER
David E. McCuen, IV
ASSISTANT CITY MANAGER
Shawn M. Bell
FINANCE DIRECTOR
Fran L. Strickland
vi
City of Abbeville
Organization Chart
October 31, 2014
vii
City of Abbeville
GFOA Certificate of Achievement
October 31, 2014
viii
FINANCIAL SECTION
Independent Auditor’s Report
Honorable Mayor and Members of City Council
City of Abbeville
Abbeville, South Carolina
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, the business-type
activities, each major fund and the aggregate remaining fund information of the City of Abbeville, South Carolina
(the "City"), as of and for the year ended October 31, 2014, and the related notes to the financial statements,
which collectively comprise the City’s basic financial statements as listed in the table of contents.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes 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.
Auditor’s Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted our
audit in accordance with 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. Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether due to fraud or error. In making those
risks assessments, the auditor considers internal control relevant to the entity’s preparation and fair
presentation of the financial statements 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 entity’s internal
control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of
accounting principles used and the reasonableness of significant estimates made by management, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
audit opinions.
www.elliottdavis.com
Opinions
In our opinion, the 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 as of October 31, 2014, and the respective changes in financial position
and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles
generally accepted in the United States of America.
Emphasis of Matter
As discussed in Note 11 to the financial statements, the City adopted the provisions of Governmental
Accounting Standards Board Statement No. 65, Items Previously Reported as Assets and Liabilities, effective
November 1, 2013. Our audit opinion is not modified with respect to this matter.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s
discussion and analysis, general fund budgetary comparison schedule and schedule of funding progress – other
post employment benefits, at pages 4-11, 46 and 47, be presented to supplement the basic financial
statements. Such information, although not a part of the basic financial statements, is required by the
Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for
placing the basic financial statements in an appropriate operational, economic, or historical context. We have
applied certain limited procedures to the required supplementary information in accordance with auditing
standards generally accepted in the United States of America, which consisted of inquiries of management
about the methods of preparing the information and comparing the information for consistency with
management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained
during our audit of the basic financial statements. We do not express an opinion or provide any assurance on
the information because the limited procedures do not provide us with sufficient evidence to express an
opinion or provide any assurance.
Other 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 fund statements, individual fund schedules and
schedule of fines, assessments and surcharges are presented for purposes of additional analysis and are not a
required part of the basic financial statements.
The combining fund statements, individual fund schedules and schedule of fines, assessments and surcharges
are the responsibility of management and were derived from and relate directly to the underlying accounting
and other records used to prepare the basic financial statements. Such 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 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 fund statements, individual fund schedules and schedule of fines, assessments and
surcharges are fairly stated, in all material respects, in relation to the basic financial statements as a whole.
2
The introductory and statistical sections have not been subjected to the auditing procedures applied in the
audit of the basic financial statements and accordingly, we do not express an opinion or provide any assurance
on them.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated April 14, 2015 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 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 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.
Greenwood, South Carolina
April 14, 2015
3
City of Abbeville
October 31, 2014
MANAGEMENT’S DISCUSSION AND ANALYSIS
This section of City of Abbeville’s annual financial report presents our discussion and analysis of the City’s
financial performance during the fiscal year ended October 31, 2014. Please read it in conjunction with the
transmittal letter at the front of this report and the City’s financial statements, which follow this section.
FINANCIAL HIGHLIGHTS
•
•
•
•
•
•
•
The City’s assets exceeded its liabilities at October 31, 2014 by $17.0 million (net position). Of this
amount $3.2 million (unrestricted net position) may be used to meet the government’s ongoing
obligations.
The City repaid principal of $1.0 million on bonds, notes and capital leases payable during the year.
The City issued new capital leases totaling $240 thousand during the year.
The City’s total net position increased $1.7 million during the course of this year’s operations. Net
position of our business-type activities increased $808 thousand; net position of our governmental
activities increased $876 thousand.
During the year, the City’s general fund balance increased $300 thousand or 30.7 percent.
In the City’s business-type activities, net position increased by $808 thousand due to implementation of
a purchased power cost adjustment factor to offset increases in the cost of purchased power.
Actual general fund expenditures were $509 thousand less than budgeted. See General Fund Budgetary
Highlights section for contributing factors in the positive variance.
OVERVIEW OF THE FINANCIAL STATEMENTS
This annual report consists of four sections – Introductory Section, Financial Section (which includes
management’s discussion and analysis, the basic financial statements, required supplementary information and
other supplementary information), Statistical Section and Compliance Section. The basic financial statements
include two kinds of statements that present different views of the City:
•
•
The first two statements are government-wide financial statements that provide both long-term and
short-term information about the City’s overall financial status.
The remaining statements are fund financial statements that focus on individual parts of the City
government, reporting the City’s operations in more detail than the government-wide statements.
o The governmental funds statements tell how general government services like public safety
were financed in the short term as well as what remains for future spending.
o Proprietary fund statements offer short- and long-term financial information about the
activities the government operates like businesses.
o Fiduciary fund statements provide information about resources held for the benefit of parties
outside the government. Fiduciary funds are not reflected in the government-wide financial
statements because the resources of those funds are not available to support the City’s own
programs. The accounting used for fiduciary funds is much like that of the proprietary funds.
The financial statements also include notes that explain some of the information in the financial statements.
The statements are followed by a section of required supplementary information that further explains and
supports the information in the financial statements. In addition to these required elements, we have included
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City of Abbeville
October 31, 2014
a section with combining statements that provides details about our nonmajor governmental funds, each of
which are added together and presented in single columns in the basic financial statements.
Figure A-1 summarizes the major features of the City’s financial statements, including the portion of the City
government they cover and the types of information they contain. The remainder of this overview section of
the management’s discussion and analysis explains the structure and contents of each of the statements.
Figure A-1
Major Features of City of Abbeville’s Government-wide and Fund Financial Statements
Government-wide
Statements
Governmental Funds
Proprietary
Funds
Fiduciary
Funds
Scope
Entire City
government
(except Fiduciary
funds)
The activities of the
City that are not
proprietary or
fiduciary.
Activities the City
operates similar to
private businesses.
Instances in which the
City is the agent for
someone else’s
resources
Required financial
statements
●Statement of net
position
●Statement of
activities
●Balance Sheet
●Statement of
revenues,
expenditures, and
changes in fund
balances
●Statement of net
position
●Statement of revenues,
expenses, and changes
in net position
●Statement of cash
flows
●Statement of fiduciary
assets and liabilities
Accounting basis and
measurement focus
Accrual accounting
and economic
resources focus
Modified accrual
accounting and
current financial
resources
Accrual accounting and
economic resources
focus
Accrual accounting and
economic resources
focus
Type of asset/liability
information
All assets and
liabilities, both
financial and
capital, and shortterm and long-term
Only assets expected
to be used up and
liabilities that come
due during the year or
soon thereafter; no
capital assets
included
All assets and liabilities,
both financial and
capital, and short-term
and long-term
All agency assets and
liabilities, both shortterm and long-term
Type of inflow/outflow
Information
All revenues and
expenses during
year, regardless of
when cash is
received or paid
Revenues for which
cash is received
during or soon after
the end of the year
expenditures when
goods or services
have been received
and payment is due
during the year or
soon thereafter.
All revenues and
expenses during the
year, regardless of when
cash is received or paid
The government-wide statements report information about the City as a whole using accounting methods
similar to those used by private-sector companies. The statement of net position includes all of the
government’s assets and liabilities. All of the current year’s revenues and expenses are accounted for in the
statement of activities regardless of when cash is received or paid.
5
City of Abbeville
October 31, 2014
The two government-wide statements report the City’s net position and how it has changed. Net position – the
difference between the City’s assets and liabilities – is one way to measure the City’s financial health, or
position.
•
•
Over time, increases or decreases in the City’s net position are an indicator of whether its financial
health is improving or deteriorating, respectively.
To assess the overall health of the City one needs to consider additional non-financial factors such as
changes in the City’s property tax base and the condition of the City’s infrastructure.
The government-wide financial statements of the City are divided into two categories:
•
•
Governmental activities – Most of the City’s basic services are included here, such as the police, fire,
public works, parks departments, and general administration. Property taxes and state and federal
grants finance most of these activities.
Business-type activities – The City charges fees to customers to help it cover the costs of certain
services it provides.
FUND FINANCIAL STATEMENTS
The fund financial statements provide more detailed information about the City’s most significant funds – not
the City as a whole. Funds are accounting devices that the City uses to keep track of specific sources of funding
and spending for particular purposes.
•
•
Some funds are required by State law and by bond covenants.
The City Council establishes other funds to control and manage money for particular purposes or to
show that it is properly using certain taxes and grants.
The City has three kinds of funds:
•
Governmental funds – Most of the City’s basic services are included in governmental funds, which focus
on (1) how cash and other financial assets that can readily be converted to cash flow in and out and (2)
the balances left at year-end that are available for spending. Consequently, the governmental funds
statements provide a detailed short-term view that helps determine whether there are more or fewer
financial resources that can be spent in the near future to finance the City’s programs. Because this
information does not encompass the additional long-term focus of the government-wide statements,
additional information is provided at the bottom of the governmental funds statement, or on the
subsequent page, that explains the relationship (or differences) between them.
•
Proprietary funds – Services for which the City charges customers a fee are generally reported in
proprietary funds. Proprietary funds, like the government-wide statements, provide both long and
short-term financial information.
•
Fiduciary funds – The City acts as agent, or fiduciary, for other entities’ resources. The City is responsible
for ensuring that the assets reported in these funds are used for their intended purposes. All of the
City’s fiduciary activities are reported in a separate statement of fiduciary assets and liabilities. These
activities are excluded from the City’s government-wide financial statements because the City cannot
use these assets to finance its operations.
6
City of Abbeville
October 31, 2014
GOVERNMENT-WIDE FINANCIAL ANALYSIS
Net position
The City’s combined net position increased approximately $1.9 million or 12.2% between fiscal years 2013 and
2014 (see Table A-1). By far the largest portion of the City’s net position (77.7%) reflects its investment in capital
assets (e.g., land, buildings, machinery, and equipment), less any related debt used to acquire those assets that is
still outstanding. The City uses these capital assets to provide services to citizens; consequently, these assets are
not available for future spending. Although the City’s investment in its 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.
Table A-1
City of Abbeville’s Net Position
(in thousands of dollars)
Governmental activities
2014
2013
Assets
Current and other
Capital assets, net
Total assets
$
Total deferred outflows of
resources
1,877 $
6,048
7,925
Business-type activites
2014
2013 *
1,675
5,487
7,162
$
3,924 $
17,604
21,528
Total
2014
5,129
16,610
21,739
$
Total Percent Change
2013-2014
2013
5,801 $
23,652
29,453
6,804
22,097
28,901
-14.7%
7.0%
1.9%
-
-
52
56
52
56
-7.1%
Liabilities
Long-term liabilities
Other liabilities
Total liabilities
1,084
234
1,318
1,135
296
1,431
10,196
956
11,152
10,909
1,140
12,049
11,280
1,190
12,470
12,044
1,436
13,480
-6.3%
-17.1%
-7.5%
Net position
Net investment in capital assets
Restricted
Unrestricted
Total net position
5,081
282
1,244
6,607 $
4,525
374
832
5,731
8,077
397
1,954
10,428 $
13,158
679
3,198
17,035 $
12,725
758
1,994
15,477
3.4%
-10.4%
60.4%
10.1%
$
$
8,200
384
1,162
9,746
$
* As restated, see Note 11.
Net position of our business-type activities increased by 7.0 percent to $10.4 million. In addition, the net
position of our governmental activities increased $876 thousand or 15.3 percent.
Changes in net position. The City’s total revenues increased by 11.8 percent to $16.1 million (see Table A-2).
Approximately 7.0 percent of the City’s revenue comes from property taxes. Fees charged for services account
for about 83.8 percent of the City’s revenues.
The total cost of all programs and services increased during the year by 4.1 percent to $14.1 million. The City’s
expenses cover a range of services, with about 12.7 percent related to public safety and 71.1 percent related to
enterprise fund operations.
7
City of Abbeville
October 31, 2014
Table A-2 and the narrative that follows consider the operations of governmental and business-type activities
separately.
Table A-2
Changes in City of Abbeville’s Net Position
Revenues
Program revenues:
Charges for services
Operating grants and contributions
Capital grants and contributions
General revenues:
Property taxes
Other taxes
Intergovernmental
Other
Total revenues
2014
2013
$
Program expenses
General government
Public safety
Public Works
Recreation
Development
Interest and other charges
Enterprise
Total expenses
Change in net position before transfers
Transfers in (out)
Change in net position
$
2014
2013
2,137 $
17
762
1,127
464
128
52
4,687
2,281
14
50
1,102
396
97
59
3,999
789
1,786
733
344
728
28
4,408
546
1,747
747
360
408
39
3,847
279
597
876 $
152
607
759
$
Total
2013-2014
2013
13,517 $
17
762
12,633
14
50
7.0%
21.4%
1424.0%
76
10,428
1,127
464
128
108
16,123
1,102
396
97
135
14,427
2.3%
17.2%
32.0%
-20.0%
11.8%
9,706
9,706
789
1,786
733
344
728
28
10,031
14,439
546
1,747
747
360
408
39
9,706
13,553
44.5%
2.2%
-1.9%
-4.4%
78.4%
-28.2%
3.3%
6.5%
874
874
92.7%
11,380 $
-
10,352
-
56
11,436
10,031
10,031
1,405
(597)
808 $
$
2014
722
(607)
115
$
$
1,684
1,684 $
92.7%
Governmental Activities
•
•
Total revenues for the City’s governmental activities increased $688 thousand, or 17.2 percent, while
total expenses increased $561 thousand, or 14.6 percent.
Total grants and contributions increased by $715 thousand from the prior year due primarily to
increased capital grants received in the current year.
Business-Type Activities
•
•
•
Extremely cold temperatures in the January and February winter months coupled with warmer
temperatures in the summer season of 2014 compared to an unusually mild winter and summer in
2013 contributed to an increase in revenues of $1.0 million.
Despite a 5% volumetric rate increase, water revenues decreased by $29,000 because of conservation
measures put in place by the city’s largest wholesale customer. Sewer revenues, on the other hand,
increased by $41,000 as a result of the rate increase.
Purchased power expense increased from the prior year by $492,000. A 6.7 percent increase was
imposed by Piedmont Municipal Power Authority.
8
City of Abbeville
October 31, 2014
FINANCIAL ANALYSIS OF THE CITY’S FUNDS
Governmental Funds
As the City completed the year, its governmental funds reported a combined fund balance of $1.53 million or
18.3 percent above last year. The general fund is the chief operating fund of the City. At the end of the fiscal
year 2014, the unassigned fund balance of the general fund was $1.1 million or 85.5 percent of the total fund
balance of the general fund. The fund balance of the general fund increased by $300 thousand during fiscal year
2014 compared to an increase in the general fund of $244 thousand for the fiscal year ended October 31, 2013.
Key factors determining this result were:
•
•
•
Total general fund revenues experienced decreases of $96 thousand in insurance business licenses, $14
thousand in charges for services, and a $16 thousand decrease in fines and forfeitures. Taxes increased
by $109 thousand due partially to growth in commercial assessments. Intergovernmental revenues
increased by $28 thousand due to growth in the economy.
Total general fund expenditures increased less than one tenth of a percent, despite a 1 percent increase
in salaries, due to restructuring of personnel in some departments. Purchases for equipment and
machinery decreased by $110 thousand from 2013.
Other financing sources and uses decreased $239 thousand for the governmental funds because of a
reduction in capital outlay funding in 2014. Capital projects from 2013 are ongoing.
General Fund Budgetary Highlights
Actual general fund expenditures were $509 thousand less than budgeted amounts. This is due to several
factors. Roll carts valued at $101 thousand were budgeted in general fund expenditures but in accordance with
accounting principles were reclassified to assets as inventory, a garbage truck budgeted at $150 thousand was
purchased for $85 thousand after trade-in of used equipment, and $50 thousand was appropriated in the
general fund as the city’s portion of a new fire pumper purchased with a federal grant but was accounted for in
a special revenue fund per accounting principles. Self-contained breathing apparatus equipment was budgeted
at $28 thousand in fiscal year 2014 but was not expended until fiscal year 2015. Paving of $120 thousand
budgeted for 2014 was not begun and personnel expenditures came in under budget by $90 thousand due to
changes in personnel structure in some departments as well as a refund of worker’s compensation surplus due
to overall positive member experience ratings.
On the other hand, resources available for appropriation were $13 thousand below the budgeted amount. The
following budget variances were only partially offset by positive budget variances for taxes, licenses and
intergovernmental revenues. Fines and forfeitures were below budget by $34 thousand, rentals and fees by $10
thousand, and intergovernmental revenues by $100 thousand.
CAPITAL ASSET AND DEBT ADMINISTRATION
Capital Assets
At the end of 2014, the City had invested $24 million in a broad range of capital assets, net of depreciation (see
Table A-3). This amount represents a net increase (including additions and deductions) of $1.6 million or 7
percent, above last year.
9
City of Abbeville
October 31, 2014
Table A-3
City of Abbeville’s Capital Assets
Land
Construction in progress
Buildings and improvement
Infrastructure
Machinery and equipment
Works of Art
Accumulated depreciation
Totals
$
$
2014
2013
449 $
449 $
76
403
2,266
1,849
4,128
4,527
3,222
3,523
350
350
(4,914)
(5,143)
5,487 $
6,048 $
2014
2013
248 $
248 $
1,040
2,128
3,499
3,499
25,841
25,265
5,201
5,146
(19,313)
(18,588)
17,604 $
16,610 $
Total
2014
697 $
2,204
5,765
30,368
8,724
350
(24,456)
23,652 $
2013
697
1,443
5,348
29,393
8,368
350
(23,502)
22,097
0%
8%
3%
4%
0%
4%
7%
This year’s major capital assets additions included:
•
•
•
•
•
•
•
•
•
Completion of the municipal office building roof upgrade at a value of $404,000.
A 2014 Fire Pumper in the amount of $442,000.
A 2015 Peterbilt Garbage Truck at a cost of $141,000.
Upgrade of Church Street in the amount of $399,000.
Installation of a new sewer line to Piedmont Technical College at a cost of $442,000.
Upgrade of the Industrial Park lift station at a cost of $106,000.
Upgrade to radio read electric meters for the amount of $70,900.
Purchase of a new trailer mounted generator valued at $32,000.
Installation of a PAX mixer at the Standpipe Water Tank for $24,000.
More detailed information about the City’s capital assets is presented in Notes 1 and 5 to the financial
statements.
Long-term Debt
At year-end the City had $11.1 million in bonds, notes payable, and capital lease obligations outstanding as
shown in Table A-4. The City repaid principal of $1.0 million on bonds, notes and capital leases payable during
the year. The City issued new capital leases totaling $240 thousand.
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 available debt margin for the City is $603
thousand.
More detailed information about the City’s long-term debt is presented in Note 8 to the financial statements.
10
City of Abbeville
October 31, 2014
Table A-4
City of Abbeville’s Outstanding Debt
2014
2013
Long-term obligations
Revenue bonds
Notes payble
Capital lease obligations
Totals
$
$
267 $
248
471
986 $
Total
2014
2013
307
311
372
990
$
$
9,768 $
347
10,115 $
10,317
501
10,818
2014
$
$
10,035 $
248
818
11,101 $
2013
10,624
311
873
11,808
-6%
-20%
-6%
-6%
ECONOMIC FACTORS AND NEXT YEAR’S BUDGETS AND RATES
Unemployment in Abbeville County now stands at 6.8%. This compares only slightly unfavorably with the South
Carolina unemployment rate of 6.6% and the national rate of 5.5%. It is better than the 10.7% unemployment
figure three years ago. These indicators along with a number of other economic factors, which can be found in
the statistical section of this report, were considered in preparing the City’s budget for the 2015 fiscal year.
Amounts available for appropriation in the general fund budget are $4.5 million with a decrease of $146
thousand under the final 2015 budget. This decrease is attributable mainly to capital equipment and
improvements of $516,000 budgeted in 2014 as compared to the 2015 budget of $310,500.
As for the City’s business-type activities, the 2015 budget will include a 6% volumetric rate and base rate
increase in water and sewer utilities.
The budget includes a decrease of $178 thousand in expenditures over the 2014 budget. Key expenditures for
the year include: Administrative Services technology and financial software upgrade, police department patrol
vehicles, state C-fund road resurfacing projects, Trinity/Livery Stable Parking Lot resurfacing, Wilson Hill park
improvements, and for the enterprise fund the replacement of a water treatment plant alum feed pump, PAX
mixer installation for the Industrial Park water tank, sewer line replacement and upgrades, and continued
upgrades of voltage of the electric distribution system.
CONTACTING THE CITY’S FINANCIAL MANAGEMENT
This financial report is designed to provide our citizens, taxpayers, customers, and investors and creditors with a
general overview of the City’s finances and to demonstrate the City’s accountability for the money it receives. If
you have questions about this report or need additional information, contract Fran Strickland, Finance Director,
or visit the City website at http://abbevillecitysc.com.
11
BASIC FINANCIAL STATEMENTS
City of Abbeville
October 31, 2014
Primary Government
Governmental
Activities
ASSETS
Cash and cash equivalents
Restricted cash and cash equivalents
Investments
Restricted investments
Receivables, net
Taxes
Accounts
Due from other governments
Internal balances
Inventories and prepaid items
Capital assets
Land
Works of art
Buildings and other improvements
Infrastructure
Less accumulated depreciation
$
103,820
235,146
770,832
67,083
$
83,350
23,957
52,293
382,865
157,477
Total assets
DEFERRED OUTFLOWS OF RESOURCES
Deferred loss on bond refunding
LIABILITIES
Accounts payable
Accrued expenses
Accrued interest payable
Unearned revenue
Other liabilities
Long-term liabilities
Net post employment benefit obligation
Due within one year
Due in more than one year
Total liabilities
NET POSITION
Restricted for:
Debt service
Other
Unrestricted
Total net position
Business-type
Activities
$
See Notes to Financial Statements
12
382,606
246,201
806,497
933,316
Totals
$
1,407,732
(382,865)
531,217
486,426
481,347
1,577,329
1,000,399
83,350
1,431,689
52,293
688,694
448,768
75,896
350,000
2,266,383
4,527,582
3,523,234
(5,143,485)
248,443
2,127,604
3,499,230
25,840,734
5,201,428
(19,313,614)
697,211
2,203,500
350,000
5,765,613
30,368,316
8,724,662
(24,457,099)
7,925,201
21,528,529
29,453,730
-
51,612
51,612
59,839
81,559
11,128
73,383
7,632
572,771
69,739
59,444
254,325
632,610
151,298
70,572
73,383
261,957
1,415
270,297
812,458
4,793
836,184
9,354,662
6,208
1,106,481
10,167,120
1,317,711
11,151,918
12,469,629
5,081,213
8,077,361
13,158,574
93,539
188,162
1,244,576
396,524
1,954,338
490,063
188,162
3,198,914
6,607,490
$
10,428,223
$
17,035,713
City of Abbeville
Statement of Activities
For the year ended October 31, 2014
Charges
for Services
Expenses
FUNCTIONS/PROGRAMS
PRIMARY GOVERNMENT
General government
Public safety
Public works
Recreation
Development
Interest and other charges
$
Total governmental activities
Business-type activities
Electric
Water
Sewer
Total business-type activities
Total primary government
789,202
1,786,267
733,434
343,797
727,772
27,690
$
$
5,305
12,000
-
Capital
Grants and
Contributions
$
Governmental
Activities
761,855
-
$
587,487
(1,624,130)
(150,553)
(311,222)
34,083
(27,690)
Business type
Activities
$
Total
-
$
587,487
(1,624,130)
(150,553)
(311,222)
34,083
(27,690)
4,408,162
2,136,977
17,305
761,855
(1,492,025)
-
7,048,462
1,944,080
1,038,580
8,242,947
1,984,823
1,152,299
-
-
-
1,194,485
40,743
113,719
1,194,485
40,743
113,719
10,031,122
$
1,376,689
162,137
577,576
20,575
-
Program Revenues
Operating
Grants and
Contributions
Net (Expense) Revenue and
Changes in Net Position
Primary Government
14,439,284
11,380,069
$
13,517,046
$
17,305
$
-
-
1,348,947
1,348,947
761,855
(1,492,025)
1,348,947
(143,078)
1,127,468
226,325
41,115
196,068
-
1,127,468
226,325
41,115
196,068
127,586
1,166
50,847
597,485
3,705
53,079
(597,485)
127,586
4,871
103,926
-
2,368,060
(540,701)
1,827,359
General revenues
Taxes:
Property taxes
Sales taxes
Accommodations taxes
Hospitality taxes
Intergovernmental revenue, not restricted
for specific purposes
Investment earnings
Miscellaneous
Transfers
Total general revenues and transfers
Change in net position
Net position, beginning of year, as previously reported
Prior period adjustment (See Note 11)
13
808,246
1,684,281
9,746,381
15,477,836
(126,404)
$
876,035
5,731,455
-
Net position, beginning of year, as restated
Net position end of year
(1,492,025)
6,607,490
(126,404)
9,619,977
$
10,428,223
15,351,432
$
17,035,713
City of Abbeville
Balance Sheet - Governmental Funds
October 31, 2014
Nonmajor
Governmental
Funds
General
Total
Governmental
Funds
ASSETS
Cash and cash equivalents - restricted
Investments
Investments - restricted
Inventories
Receivables, net
Property taxes
Accounts
Prepaid items
Due from other governments
Due from enterprise fund
$
103,820
41,519
770,832
132,008
$
83,350
23,957
25,469
52,293
382,865
Total assets
193,627
67,083
-
$
-
103,820
235,146
770,832
67,083
132,008
83,350
23,957
25,469
52,293
382,865
$
1,616,113
$
260,710
$
1,876,823
$
58,230
73,383
81,559
7,632
$
1,609
-
$
59,839
73,383
81,559
7,632
LIABILITIES, DEFERRED INFLOW AND FUND BALANCE
LIABILITIES
Accounts payable
Unearned revenue - local option sales tax
Accrued expenditures
Other liabilities
Total liabilities
220,804
1,609
222,413
119,873
-
119,873
157,477
-
157,477
22,600
5,130
1,090,229
140,205
25,357
93,539
-
140,205
25,357
93,539
22,600
5,130
1,090,229
1,275,436
259,101
1,534,537
DEFERRED INFLOW OF RESOURCES
Unavailable revenue - property taxes
FUND BALANCES
Nonspendable
Restricted
Special revenue - development
Special revenue - public safety
Special revenue - debt service
General fund - victim's assistance
Assigned - public safety
Unassigned
Total fund balances
$
Total liabilities and fund balances
14
1,616,113
$
260,710
$
1,876,823
City of Abbeville
Reconciliation of Total Governmental Fund Balances
to Net Position of Governmental Activities
October 31, 2014
$
TOTAL FUND BALANCE- GOVERNMENTAL FUNDS
1,534,537
Amounts reported for governmental activities in the Statement
of Net Position are different because of the following:
Capital assets used in governmental activities are not financial
resources and therefore are not reported in the funds. These assets
consist of:
Land
Works of art
Buildings and improvements
Infrastructure
Accumulated depreciation
Total capital assets
$
448,768
75,896
350,000
2,266,383
4,527,582
3,523,234
(5,143,485)
6,048,378
Property taxes receivable will be collected after year-end, but are not available
soon enough for the current period's expenditures, and therefore have been
presented as a deferred inflow of resources in the fund financial statements.
119,873
Accrued interest on long-term obligations in governmental accounting
is not due or payable in the current period and therefore is not
reported as a liability in the funds.
(11,128)
Long-term liabilities, including bonds and notes, are not due
or payable in the current period and therefore are not reported
as liabilities in the funds. Long-term liabilities consisted of
the following:
Bonds payable
(267,000)
Capital leases payable
(470,843)
Notes payable
(248,242)
Compensated absences
(96,670)
(1,415)
Total long-term liabilities
(1,084,170)
$
TOTAL NET POSITION - GOVERNMENTAL ACTIVITIES
15
6,607,490
City of Abbeville
Statement of Revenues, Expenditures and Changes in Fund Balance
Governmental Funds
General
REVENUES
Taxes
Licenses and permits
Intergovernmental
Building rent and recreation fees
Fines and forfeitures
Interest and investment earnings
Miscellaneous revenue
$
Total revenues
EXPENDITURES
Current:
General government
Public safety
Public works
Recreation
Development
Nondepartmental
Debt service:
Principal
Interest
Total expenditures
1,369,350
1,376,689
231,495
577,576
20,575
75,533
676
50,796
Nonmajor
Governmental
Funds
Total
Governmental
Funds
$
$
196,068
761,855
490
49
1,565,418
1,376,689
993,350
577,576
20,575
75,533
1,166
50,845
3,702,690
958,462
4,661,152
809,007
1,662,701
1,050,066
360,859
57,288
452,305
609,214
-
809,007
2,115,006
1,050,066
360,859
609,214
57,288
179,874
17,389
40,000
11,144
219,874
28,533
4,137,184
1,112,663
5,249,847
Excess of revenues under expenditures
(434,494)
(154,201)
(588,695)
OTHER FINANCING SOURCES (USES)
Issuance of lease purchase note
Proceeds from sale of capital assets
Transfer in
Transfer out
216,000
12,837
597,485
(92,293)
112,293
(20,000)
216,000
12,837
709,778
(112,293)
734,029
92,293
826,322
Net change in fund balances
299,535
(61,908)
237,627
Fund balances, beginning of year
975,901
321,009
Total other financing sources
Fund balances, end of year
$
16
1,275,436
$
259,101
1,296,910
$
1,534,537
City of Abbeville
Reconciliation of the Statement of Revenues, Expenditures and Changes in
Fund Balance of Governmental Funds to the Statement of Activities
$
Net change in fund balances - Total government funds
237,627
Amounts reported for governmental activities in the Statement of Activities
are different because:
Capital outlays are reported as expenditures in the governmental funds. However,
in the Statement of Activities, the cost of capital assets is allocated over their
estimated useful lives as depreciation expense. In the current period, these
amounts are:
Capital outlay
Depreciation expense
Excess of capital outlay over depreciation expense
$ 1,072,331
(447,454)
624,877
The net effect of various miscellaneous transactions involving capital assets (sales,
trade-ins, etc.) is to decrease net position.
(63,299)
Because some revenue will not be collected for several months after the City's fiscal
year ends, it is not considered an available resource and is deferred in the
governmental funds. Unearned property tax revenues decreased by this amount.
Debt proceeds provide current financial resources to governmental funds, but issuing
debt increases long-term liabilities in the Statement of Net Position.
Capital lease issuance
25,558
(216,000)
(216,000)
Repayment of long-term debt is reported as an expenditure in governmental funds,
but the repayment reduces long-term liabilities in the Statement of Net Position.
In the current year, these amounts consisted of:
Principal payment on capital leases
Principal payment and refunding on bonds and notes payable
116,802
103,072
219,874
Interest on long term obligations in the Statement of Activities differs from the
amount reported in the governmental funds because interest is
recognized as an expenditure in the funds when it is due, and thus requires
the use of current financial resources. In the Statement of Activities,
however, interest expense is recognized as the interest accrues,
regardless of when it due for payment.
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
the governmental funds.
Accrued compensated absences
843
44,216
2,339
46,555
$
Total change in net position of governmental activities
17
876,035
City of Abbeville
Enterprise Fund
October 31, 2014
ASSETS
Current Assets
Investments
Accounts receivable, net
Prepaid items
Inventories
$
Total current assets
382,606
246,201
806,497
756,860
1,407,732
18,043
513,174
4,131,113
Noncurrent Assets
Capital assets
Land
Infrastructure
Less accumulated depreciation
176,456
248,443
2,127,604
3,499,230
25,840,734
5,201,428
(19,313,614)
Capital assets, net
17,603,825
Total noncurrent assets
17,780,281
TOTAL ASSETS
21,911,394
DEFERRED OUTFLOW OF RESOURCES
Deferred loss on bond refunding
51,612
LIABILITIES
Current Liabilities
Accounts payable
Accrued expenses
Customer deposits
Accrued interest payable
Capital lease payable
Bonds payable
Due to other funds
572,771
69,739
254,325
59,444
15,197
182,221
638,766
382,865
Total current liabilities
2,175,328
Noncurrent Liabilities
Capital lease payable
Bonds payable
4,793
60,786
164,457
9,129,419
Total noncurrent liabilities
9,359,455
TOTAL LIABILITIES
11,534,783
NET POSITION
Restricted for
Debt service
Unrestricted
8,077,361
396,524
1,954,338
$
TOTAL NET POSITION
18
10,428,223
City of Abbeville
Statement of Revenues, Expenses and Changes in Fund Net Position
Enterprise Fund
OPERATING REVENUES
Sales to customers
Reconnection and tapping fees
Pole attachment fees
Other user fees
$
TOTAL OPERATING REVENUES
11,079,959
127,826
81,036
91,248
11,380,069
OPERATING EXPENSES
Plant operations
Purchased power
Distribution
Public relations
Depreciation
General administration
1,102,202
5,333,305
1,165,230
30,897
801,346
1,328,063
TOTAL OPERATING EXPENSES
9,761,043
OPERATING INCOME
1,619,026
NONOPERATING REVENUES (EXPENSES)
Investment income
Interest expense
Other revenues
3,705
(270,079)
53,079
TOTAL NONOPERATING REVENUES (EXPENSES)
(213,295)
INCOME BEFORE TRANSFERS
1,405,731
TRANSFERS OUT
(597,485)
CHANGE IN NET POSITION
808,246
NET POSITION, BEGINNING OF YEAR, AS PREVIOUSLY REPORTED
PRIOR PERIOD ADJUSTMENT (SEE NOTE 11)
9,746,381
(126,404)
NET POSITION, BEGINNING OF YEAR, AS RESTATED
9,619,977
NET POSITION, END OF YEAR
$ 10,428,223
19
City of Abbeville
Statement of Cash Flows
Enterprise Fund
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers
Cash received from sales to public authorities
Cash receipts from fees
Cash payments for goods and services
Cash payments for employees
$
NET CASH PROVIDED BY OPERATING ACTIVITIES
10,903,925
429,035
300,110
(7,676,512)
(1,851,712)
2,104,846
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Subsidy from utility association and other receipts
Net transfers (to) / from other funds
53,079
(647,774)
NET CASH USED FOR NON-CAPITAL FINANCING ACTIVITIES
(594,695)
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES
Acquisition of capital assets
Proceeds from capital leases
Principal payments on debt
Interest payments
(1,794,811)
23,823
(782,396)
(265,067)
NET CASH USED FOR NON-CAPITAL FINANCING ACTIVITIES
(2,818,451)
CASH FLOWS FROM INVESTING ACTIVITIES
Income received from investments
Proceeds from sale of investments
3,705
1,526,441
NET CASH PROVIDED BY INVESTING ACTIVITIES
1,530,146
NET INCREASE IN RESTRICTED AND UNRESTRICTED CASH AND
CASH EQUIVALENTS
221,846
RESTRICTED AND UNRESTRICTED CASH AND CASH EQUIVALENTS,
BEGINNING OF YEAR
406,961
RESTRICTED AND UNRESTRICTED CASH AND CASH EQUIVALENTS,
END OF YEAR
$
628,807
$
1,619,026
Reconciliation of operating income to net cash provided by operating activities:
Operating income
Adjustments to reconcile operating income to net cash
provided by operating activities
Depreciation expense
Change in:
Accounts receivable
Prepaid expenses
Inventory
Accounts payable
Accrued expenses
Customer deposits
801,346
(176,034)
(1,118)
582
(136,137)
(10,074)
13,281
1,891
(7,917)
NET CASH PROVIDED BY OPERATING ACTIVITIES
$
20
2,104,846
City of Abbeville
Statement of Fiduciary Assets and Liabilities
Fiduciary Funds
October 31, 2014
Agency
Fund
ASSETS
TOTAL ASSETS
$
37,250
$
37,250
$
37,250
$
37,250
LIABILITIES
Due to designated recipients
TOTAL LIABILITIES
21
City of Abbeville
Notes to Basic Financial Statements
October 31, 2014
Note 1.
Summary of Significant Accounting Policies
The basic financial statements of City of Abbeville, South Carolina (the City), have been prepared in conformity with
accounting principles (GAAP) generally accepted in the United States of America as applied to governmental units. The
Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental
accounting and financial reporting principles. The more significant of the government’s accounting policies are
described below.
Reporting entity:
The City is an incorporated municipality located in Abbeville County, South Carolina that was established in 1832.
Section 47-26 of the 1962 Code of Laws, as amended (“Home Rule Act”), requires that municipalities adopt a specific
form of government. Accordingly, the City operates under a Council-manager form of government.
All activities for which the Council exercises oversight responsibility have been incorporated into the basic financial
statements to form the reporting entity. The City has no component units.
Basis of presentation:
The City's basic financial statements consist of government-wide statements, including a statement of net position and
a statement of activities, and fund financial statements which provide a more detailed level of financial information.
Government-wide financial statements
The statement of net position and the statement of activities display information about the City as a whole. These
statements include the financial activities of the primary government, except for fiduciary funds. For the most part,
the effect of interfund activity has been removed from the statements. The statements distinguish between those
activities of the City that are governmental and those that are considered business-type activities.
The statement of net position presents the financial condition of the governmental and business-type activities for
the City at year-end. The statement of activities presents a comparison between direct expenses and program
revenues for each program or function of the City's governmental activities and for the business-type activities of
the City. Direct expenses are those that are specifically associated with a service, program or department and
therefore clearly identifiable to a particular function. Program revenues include charges paid by the recipient for
the goods or services offered by the program, grants and contributions that are restricted to meeting the
operational or capital requirements of a particular program and interest earned on grants that is required to be
used to support a particular program. Revenues which are not classified as program revenues are presented as
general revenues of the City, with certain limited exceptions. The comparison of direct expenses with program
revenues identifies the extent to which each business segment or governmental function is self-financing or draws
from the general revenues of the City.
22
City of Abbeville
October 31, 2014
Note 1.
Summary of Significant Accounting Policies, Continued
Fund financial statements
During the year, the City segregates transactions related to certain City functions or activities in separate funds in
order to aid financial management and to demonstrate legal compliance. Fund financial statements are designed to
present financial information of the City at this more detailed level. The focus of governmental and enterprise fund
financial statements is on major funds. Each major fund is presented in a separate column.
Measurement focus, basis of accounting, and financial statement presentation:
Government-wide financial statements
The government-wide financial statements are reported using the economic resources management focus and the
accrual basis of accounting, as are the proprietary fund and fiduciary fund financial statements. Revenues are
recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related
cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar
items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met.
Fund financial statements
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 government 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.
Governmental funds are those through which all governmental functions of the City are financed. The City’s
expendable financial resources and related assets and liabilities are accounted for through governmental funds.
The following is the City’s major governmental fund.
The General Fund is the government’s primary operating fund. It accounts for all financial resources of the general
government, except those required to be accounted for in another fund. All general tax revenues and other
receipts that are not allocated by law or contractual agreement to other funds are accounted for in the General
Fund. General operating expenditures and the capital improvement costs that are not paid through other funds are
paid from the General Fund. This is a budgeted fund, and any fund balance is considered a resource available for
use.
The Other Governmental Funds, nonmajor funds, include special revenues and capital projects funds. The special
revenue funds are used to account for the proceeds of specific revenue sources (other than special assessments, or
major capital projects) that are legally restricted to expenditures for specified purposes, and include JAG Grant,
Hospitality Tax and Drug Forfeitures funds. Capital projects funds are used to account for financial resources to be
used for the acquisition or construction of major capital facilities, and include Capital Projects, CDBG Fire Truck
Project and CDBG Streetscape Project funds.
23
City of Abbeville
October 31, 2014
Note 1. Summary of Significant Accounting Policies, Continued
Proprietary Fund Types are accounted for based on the flow of economic resources measurement focus and use
the accrual basis of accounting. Under this method revenues are recorded when earned and expenses are recorded
at the time liabilities are incurred. 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. The principal operating
revenues of enterprise funds are primarily charges for services and fees. Operating expenses for enterprise funds
include the expense for providing goods and services, administrative expenses, maintenance, and depreciation of
capital assets. All revenues and expenses not meeting this definition are reported as non-operating revenues and
expenses. Major proprietary fund types include the following funds:
An enterprise fund is used to account for the City’s electric, water, and sewer services provided to the residents
of the City and some of the surrounding areas. Activities of the government’s electric distribution operations
are reported in the electric department. Activities of the government’s water distribution are reported in the
water department. Operations of the sewage treatment plant and sewage pumping stations and collection
systems are reported in the sewer department. Separate departments are maintained to report the results of
operations by type of service provided.
Fiduciary Fund Types are used to account for expendable assets held by the City in a trustee capacity or as an agent
for individuals, private organizations, other governmental units and/or other funds. Fiduciary Fund Types include:
Agency Fund, an unbudgeted fund, accounts for the assets of the City’s firemen’s fund. This fund has no equity
(assets are equal to liabilities) and does not include revenues and expenditures for general operation of the
City. This fund is custodial in nature and does not present results of operations.
As a general rule the effect of interfund activity has been eliminated from the government-wide financial
statements. Exceptions to this general rule are charges between the government’s enterprise function and various
other functions of the government. Elimination of these charges would distort the direct costs and program
revenues reported for the various functions concerned.
Amounts reported as program revenues include (1) charges to customers or applicants for goods, services, or
privileges provided, (2) operating grants and contributions, and (3) capital grants and contributions. Internally
dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues
include all taxes.
Revenues - exchange and non-exchange transactions
Revenue resulting from exchange transactions, in which each party gives and receives essentially equal value, is
recorded on the accrual basis when the exchange takes place. On a modified accrual basis, revenue is recorded in
the fiscal year in which the resources are measurable and become available. Available means that the resources
will be collected within the current fiscal year or are expected to be collected soon enough thereafter to be used to
pay liabilities of the current fiscal year. For the City, available means expected to be received within sixty days of
fiscal year end.
24
City of Abbeville
October 31, 2014
Note 1. Summary of Significant Accounting Policies, Continued
Non-exchange transactions, in which the City receives value without directly giving equal value in return, include
property taxes, grants, entitlements, and donations. On an accrual basis, revenue from property taxes is recognized
in the fiscal year for which the taxes are levied. Revenue from grants, entitlements, and donations is recognized in
the fiscal year in which all eligibility requirements have been satisfied. Eligibility requirements include timing
requirements, which specify the year when the resources are required to be used or the year when use is first
permitted; matching requirements, in which the City must provide local resources to be used for a specified
purpose; and expenditures requirements, in which the resources are provided to the City on a reimbursement basis.
On a modified accrual basis, revenue from non-exchange transactions must also be available before it can be
recognized.
Property taxes, franchise taxes, licenses, and interest associated with the current fiscal period are all considered to
be susceptible to accrual and so have been recognized as revenues of the current fiscal period. All other revenue
items are considered to be measurable and available only when cash is received by the government.
Unavailable / Unearned revenue
Unavailable revenue in the fund financial statements arises in connection with receivables for revenues that are not
considered to be available to liquidate liabilities of the current period. Property taxes for which there is an
enforceable legal claim as of October 31, 2014 have been recorded as unavailable revenue. Governmental funds
also defer revenue recognition in connection with resources that have been received but not yet earned.
Budgets and budgetary accounting:
Budgets are adopted on a basis consistent with accounting principles generally accepted in the United States of
America. Annual appropriated budgets are adopted for the general fund. All annual appropriations lapse at fiscal
yearend.
Cash and investments:
Cash and cash equivalents include amounts in demand deposits as well as short-term investments with a maturity date
within three months of the date acquired by the City. The City’s investment policy is designed to operate within
existing statutes (which are identical for all funds, fund types and component units within the State of South Carolina)
that authorize the City to invest in the following:
(1)
(2)
(3)
Obligations of the United States and agencies thereof;
General obligations of the State of South Carolina or any of its political units;
Financial institutions to the extent that the same are insured by an agency of the federal government;
25
City of Abbeville
October 31, 2014
Note 1.
(4)
(5)
(6)
Certificates of deposit where the certificates are collaterally secured by securities of the type described in (1)
and (2) above held by a third party as escrow agent or custodian, of a market value not less than the amount of
the certificates of deposit so secured, including interest, provided, however, such collateral shall not be required
to the extent the same are insured by an agency of the federal government;
Repurchase agreements when collateralized by securities as set forth in this section;
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
other financial institution when acting as trustee or agent for a bond or other debt issue of the City, if the
particular portfolio of the investment company or investment trust in which the investment is made (i) is 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.
Investments are stated at fair value; except that repurchase agreements and U.S. Government agencies that have a
maturity at the time of purchase of one year or less are shown at amortized cost.
The City has certain funds invested with the South Carolina State Treasurer’s Office, which established the South
Carolina Local Government Investment Pool (the “Pool”) pursuant to Section 6-6-10 of the South Carolina Code. The
Pool is an investment trust fund, in which public monies in excess of current needs, which are under the custody of any
city treasurer or any governing body of a political subdivision of the State, may be deposited. The Pool is a 2a 7-like
pool which is not registered with the Securities and Exchange Commission (“SEC”) as an investment company, but has a
policy that it will operate in a manner consistent with the SEC’s Rule 2a 7 of the Investment Company Act of 1940. In
accordance with GASB Statement No. 31, “Accounting and Financial Reporting for Certain Investments and for External
Investment Pools”, investments are carried at fair value determined annually based upon quoted market prices. The
total fair value of the Pool is apportioned to the entities with funds invested on an equal basis for each share owned,
which are acquired at a cost of $1.00. The City’s cash investment objectives are preservation of capital, liquidity and
yield.
Receivables and payables:
During the course of its operations, the City has numerous transactions occurring between funds. These transactions
are representative of reimbursement arrangements outstanding at the fiscal year. The accompanying financial
statements generally reflect such transactions as transfers in (out).
These amounts are eliminated in the governmental and business-type activities columns of the statement of net
position, except for the net residual amounts due between governmental and business-type activities, which are
presented as internal balances.
Property taxes are levied on the assessed value of real and personal property, excluding automobiles, as of
December 31 of the calendar year preceding the fiscal year. Liens attach to the property at the time taxes are levied.
Taxes are due without penalty, for real and personal property excluding automobiles, through January 15. After that
time, penalties are added depending on the date paid as follows.
January 16th through February 16th
February 16th through March 2nd
After March 2nd
–
–
–
5% of tax
10% of tax
15% of tax
26
City of Abbeville
October 31, 2014
Note 1.
Property tax revenues are recognized when due and collectible within the current period or soon enough thereafter
(defined as sixty days) to pay liabilities of the current period.
All trade and property taxes receivable are shown net of an allowance for uncollectible amounts. Trade receivables are
comprised of amounts due from entities and individuals for a variety of types of fees, charges, and services, including
natural gas and sewer fees and charges.
Inventories and prepaid items:
Inventories are carried at average cost and are used on a first-in, first-out basis, and are charged to expenses when
consumed rather than when purchased. Proprietary fund inventories include supplies and materials required for the
repair, maintenance, and extension of the utility plants, as well as small tools. Governmental fund inventories consist
of gasoline and public works supplies and materials.
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as inventory or
prepaid items using the consumption method. A current asset for the inventory or prepaid amount is recorded at the
time of the purchase and an expenditure/expense is reported in the year in which inventory or services are consumed.
Capital assets:
General capital assets are those assets not specifically related to activities reported in the proprietary funds. These
assets generally result from expenditures in the governmental funds. These assets are reported in the governmental
activities column of the government-wide statement of net position, but are not reported in the fund financial
statements. Works of art consist of paintings owned by the City, and are not depreciated. Capital assets utilized by the
proprietary funds are reported both in the business-type activities column of the government-wide statement of net
position and in the respective fund financial statements. All capital assets are capitalized at cost (or estimated
historical cost) and updated for additions and retirements during the year. Donated capital assets are recorded at their
fair market values as of the date received. The City maintains a capitalization threshold of $5,000 for its capital assets.
The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend an asset’s
life are not capitalized. Interest incurred in the proprietary fund during the construction of capital assets is capitalized.
27
City of Abbeville
October 31, 2014
Note 1.
All reported capital assets except land and construction in progress are depreciated. Construction projects begin being
depreciated once they are complete. Improvements are depreciated over the remaining useful lives of the related
capital assets. Depreciation is computed using the straight-line method over the following useful lives:
Description
Buildings
Improvements (Other than Buildings)
Infrastructure
Sidewalks, Roads and Street
Bridges
All other
Machinery and Equipment
Computers and Office Equipment
All Other
Description
Estimated Lives
40 years
10 - 20 years
20 years
25 years
20 - 25 years
10 years
10 years
Buildings
Improvements (Other than Buildings)
Infrastructure
Sewer System
Water System
Electric System
All other
Machinery and Equipment
Computers and Office Equipment
All Other
Estimated Lives
33 - 50 years
10 - 20 years
33 years
40 years
25 years
25 - 40 years
10 years
10 years
Restricted assets:
Certain cash, cash equivalents and investments are restricted on the basic financial statements as they have been set
aside for specific purposes. These assets have been restricted because their use is (a) limited to purchases of certain
capital assets as outlined in a capital lease agreement, (b) limited for debt service or (c) limited for other special
purposes due to externally imposed restrictions.
Customer deposits:
Customer deposits represent amounts held as security by the enterprise fund for water, sewer, and electrical services.
Compensated absences:
The City reports compensated absences in accordance with the provisions of GASB Statement No. 16, “Accounting for
Compensated Absences.” City employees are granted vacation and sick leave in varying amounts. An employee is
reimbursed any accumulated vacation days upon termination of employment. Unused sick leave is reimbursed upon
termination at a rate of one third of the employee’s sick leave balance. The entire compensated absence liability and
expense is reported in the government-wide financial statements.
28
City of Abbeville
October 31, 2014
Note 1.
A liability for compensated absences is reported in the governmental funds only if they have matured, for example, as
a result of employee resignations and retirements.
In the proprietary fund, compensated absences are recorded as an expense and liability.
Accrued liabilities and long-term obligations:
All payables, accrued liabilities and long-term obligations are reported in the government-wide financial statements,
and all payables, accrued liabilities and long-term obligations payable from proprietary funds are reported on the
proprietary fund financial statements. In general, payables and accrued liabilities that will be paid from governmental
funds are reported on the governmental fund financial statements regardless of whether they will be liquidated with
current resources. However, claims and judgments, the noncurrent portion of capital leases, compensated absences,
contractually required pension contributions and special termination benefits that will be paid from governmental
funds are reported as a liability in the fund financial statements only to the extent that they will be paid with current,
expendable, available financial resources. In general, payments made within sixty days after year end are considered
to have been made with current available financial resources. Bonds and other long-term obligations that will be paid
from governmental funds are not recognized as a liability in the fund financial statements until due.
Fund balances:
The City has adopted the provisions of GASB Statement No. 54, Fund Balance Reporting and Governmental Fund Type
Definitions. The equity section of the governmental fund balance sheet is comprised of these major fund balance
elements: nonspendable, restricted, committed, assigned and unassigned. Nonspendable fund balance cannot be
spent because of its form. Restricted fund balance has limitations imposed by creditors, grantors, or contributors or by
enabling legislation or constitutional provisions at the state level. Committed fund balance is self-imposed limitations
imposed at the highest level of decision-making authority. Assigned fund balances is a limitation imposed by a
designee of the City. Unassigned fund balance in the General Fund is the net resources in excess of what can be
properly classified in one of the above four categories.
The City Council is the City’s highest level of decision making. The City Council can establish, modify or rescind a fund
balance commitment through adoption of an ordinance. There is no formal policy used by City Council to authorize
assignment of fund balance other than authorization of the City Manager to assign fund balance amounts to a specific
purpose at his discretion. The City Manager is appointed by, and serves at the pleasure of, the City Council.
The City considers restricted amounts to have been spent when an expenditure is incurred for the purposes for which
both restricted and unrestricted amounts are available. When an expenditure is incurred for which committed,
assigned or unassigned amounts could be used the City considers the expenditures to be used in this respective order.
Net position:
Net position represents the difference between assets and liabilities. Net investment in capital assets consists of
capital assets, net of accumulated depreciation, reduced by the outstanding balances of any borrowings used for the
acquisition, construction or improvement of those assets. Outstanding debt which has not been spent is included in
the same net position components as are the unspent proceeds of such outstanding debt. Net position is reported as
restricted when there are limitations imposed on its use either through the enabling legislation or through external
restrictions imposed by creditors, grantors or laws or regulations of other governments.
29
City of Abbeville
October 31, 2014
Note 1.
New Accounting Pronouncements:
GASB Statement No. 65, Items Previously Reported as Assets and Liabilities, is effective for financial statements for
periods beginning after December 15, 2012. This statement improves financial reporting by clarifying the appropriate
use of the financial statement elements deferred outflows of resources and deferred inflows of resources to ensure
consistency in financial reporting. The City has implemented this statement in the year ended October 31, 2014. As a
result, prior year bond issuance costs of $126,404 have been removed from the prior year ending balance of net
position as explained in Note 11.
The net carrying amount of the deferred loss on refunding for business-type activities of $51,612, has been reported as
“deferred outflow of resources” and will be recognized in the statement of net position as a component of interest
expense over the remaining life of the new debt issued.
Unavailable revenue of $119,873 has been reported as “deferred inflow of resources” in the governmental funds
balance sheet and will be recognized as revenue when available.
Accounting estimates:
The preparation of financial statements in accordance with accounting principles generally accepted in the United
States of America requires the City’s management to make estimates and assumptions. These estimates and
assumptions affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at
the date of the financial statements and the reported amounts of revenue and expenses during the reporting period.
Actual results could differ from those estimates.
Note 2.
Budgetary Accounting and Reporting
Budgetary policies:
An annual appropriated budget is adopted for the General Fund and is presented as required supplementary
information. The budget is presented on a modified accrual basis of accounting, which is consistent with accounting
principles generally accepted in the United States of America. During the year, no supplementary appropriations were
necessary.
The following is the City’s procedure for establishing and adopting a budget:
1. At least forty days prior to November 1, the City Manager submits to the City Council a proposed operating
budget for the fiscal year beginning November 1.
2. Public hearings are conducted to obtain taxpayer comments.
3. Prior to November 1, the budget is legally enacted through passage of an ordinance.
4. The legal level of control for each budget is maintained at the departmental level.
5. The City Manager is authorized to transfer budgeted amounts within the departments, but not between
departments, up to $5,000 as necessary in case of emergency. The City Council must be informed of such
transactions at the next council meeting. City council must also be informed by the City Manager of any
expenditure over $500 from any miscellaneous non-line item account.
30
City of Abbeville
October 31, 2014
Note 3.
Deposits and Investments
The State of South Carolina General Statutes permits the City to invest in certain types of financial instruments. The
State also has a Local Government Investment Pool (where the fair value of the position in the pool is the same as the
value of the pool shares) which invests in the type of instruments allowed under laws.
Cash consists of demand deposits or savings accounts, certificates of deposits, repurchase agreements, or U.S.
Government Securities. There were no deposit or investment transactions during the year that were in violation of the
City’s investment policies.
Custodial credit risk – deposits and investments:
Custodial credit risk is the risk that in the event of a bank failure, the City’s deposits may not be returned to it. The City
has a policy that all deposits in excess of federal insurance amounts be collateralized with securities held by the
pledging financial institution’s trust department or agent in the City’s name.
For investments, this is the risk that, in the event of the failure of the counterparty, the City will not be able to recover
the value of its investments or collateral securities that are in the possession the counterparty. In accordance with its
investment policy, the City invests in the state investment pool which is not subject to custodial credit risk.
At October 31, 2014, the carrying amount of the City’s deposits was $1,003,273 and the bank balance was $1,135,699.
The City was covered by federal depository insurance or fully collateralized at year end. Petty cash funds of $1,750
were also reflected as cash.
Investments:
As of October 31, 2014, the City had the following investments:
Investment Type
U.S. Treasury Notes and Obligations
South Carolina local government
investment pool
Investment maturities (in years)
Less than
1
1-5
5 - 10
Fair
Value
$
220,068 $
220,068 $
-
$
-
$
2,357,660
2,577,728 $
2,357,660
2,577,728 $
-
$
-
Interest rate risk:
The City has a formal investment policy that limits investment maturities as a means of managing exposure to fair value
losses due to increasing interest rates. Short term investment maturities are as follows:
Time
Under 30 days
Under 90 days
Under 181 days
Under 1 year
Maturing Amount
10% minimum
25% minimum
50% minimum
100% minimum
31
City of Abbeville
October 31, 2014
Note 3.
Deposits and Investments, Continued
Maturities for long-term funds are capped at 3 years according to the policy.
Credit risk:
The City has no investment policy that would further limit its investment choices other than state law. As of
October 31, 2014, the underlying security ratings of the City’s investment in the South Carolina Local Government
Investment Pool may be obtained from the LGIP’s complete financial statements. These financial statements may be
obtained by writing to the following address:
The State Treasurer’s Office
Local Government Investment Pool
Post Office Box 11778
Columbia, South Carolina 29211
Concentration of credit risk:
The City has no limit on the amount the City may invest in any one issuer. As of October 31, 2014, the City has
$220,068 invested in United States Treasury Bills, which is approximately 8.5% of the City’s total investment balance as
of October 31, 2014.
Reconciliation to the financial statements:
The following reconciles deposits and investments to cash and cash equivalents and investments, as presented in the
statement of net position:
October 31, 2014
Disclosures regarding deposits and investments:
Cash on hand
$
1,750
Carrying value of deposits
1,003,273
Fair value of investments
2,577,728
$
Total
Statements of net position and fiduciary assets and liabilities:
Statement of net position:
Cash and cash equivalents:
Unrestricted
Restricted
Investments
Unrestricted
Restricted
Statement of fiduciary assets and liabilities:
October 31, 2014
$
32
486,426
481,347
1,577,329
1,000,399
37,250
$
Total
3,582,751
3,582,751
City of Abbeville
October 31, 2014
Note 4.
Receivables and Unearned Revenue
Receivables as of October 31, 2014 for the government’s individual major funds and nonmajor funds in the aggregate,
including the applicable allowance for uncollectible accounts, are as follows:
Property taxes
receivable
Accounts
Intergovernmental
General
$
Gross receivables
Less: allowance
Net receivables
Note 5.
$
Other
governmental
funds
84,893 $
23,957
52,293
-
161,143
(1,543)
-
159,600 $
-
Businesstype
activities
Governmental
activities
$
84,893
23,957
52,293
$
1,468,732
-
161,143
(1,543)
$
159,600
Total
$
1,468,732
(61,000)
$
1,407,732
84,893
1,492,689
52,293
1,629,875
(62,543)
$
1,567,332
Capital Assets
Capital asset activity for the City for the year ended October 31, 2014 was as follows:
Beginning balance
Governmental Activities:
Capital assets, non-depreciable:
Land
Works of art
$
Total capital assets, non-depreciable
448,768
402,655
350,000
Increases
$
475,964
-
Decreases
$
Ending
balance
Transfers
-
$
(802,723)
-
$
448,768
75,896
350,000
1,201,423
475,964
-
(802,723)
874,664
1,848,784
4,128,734
3,221,982
13,724
582,643
281,391
403,875
398,848
-
2,266,383
4,527,582
3,523,234
9,199,500
596,367
281,391
802,723
10,317,199
1,009,672
1,461,923
2,442,528
60,991
208,203
178,260
218,092
-
1,070,663
1,670,126
2,402,696
Total accumulated depreciation
4,914,123
447,454
218,092
-
5,143,485
Total capital assets, depreciable, net
4,285,377
148,913
63,299
802,723
5,173,714
Capital assets, depreciable
Infrastructure
Total capital assets, depreciable
Less accumulated depreciation for:
Infrastructure
Total governmental activites capital assets, net
$
5,486,800
$
33
624,877
$
63,299
$
-
$
6,048,378
City of Abbeville
October 31, 2014
Note 5.
Capital Assets, Continued
Beginning balance
Business-type activities:
Capital assets, non-depreciable:
Land
$
248,443
1,040,388
$
1,560,975
$
Ending
balance
Transfers
Decreases
Increases
-
$
(473,759)
$
248,443
2,127,604
1,288,831
1,560,975
-
(473,759)
2,376,047
3,499,230
25,264,877
5,145,543
177,951
55,885
75,853
-
473,759
-
3,499,230
25,840,734
5,201,428
Total capital assets, depreciable
33,909,650
233,836
75,853
473,759
34,541,392
Less accumulated depreciation for:
Infrastructure
Total accumulated depreciation
2,749,781
12,512,657
3,325,683
18,588,121
60,937
576,453
163,956
801,346
75,853
75,853
-
2,810,718
13,013,257
3,489,639
19,313,614
Total capital assets, depreciable, net
15,321,529
(567,510)
-
473,759
15,227,778
Total capital assets, non-depreciable
Capital assets, depreciable
Infrastructure
Total business-type activites capital assets, net
$
16,610,360
$
993,465
$
-
$
-
$
17,603,825
Depreciation expense was charged to functions/programs of the primary government as follows:
Governmental activities:
General government
Public Safety
Public Works
Recreation
Development
Total depreciation expense - Governmental activities
$
$
Enterprise Funds:
Electric System
Water System
Sewer System
Total depreciation expense - Business-type activities
Note 6.
$
$
24,150
126,211
147,867
30,668
118,558
447,454
201,767
391,439
208,140
801,346
Interfund Receivables and Payables
The balances of interfund receivables and payables at October 31, 2014 were as follows:
Receivable Fund
General fund
Payable Fund
Enterprise fund
34
Amount
$
382,865
City of Abbeville
October 31, 2014
Note 7.
Transfers In and (Out)
Transfer In Fund
Transfer Out Fund
General fund
Nonmajor governmental
Enterprise fund
General fund
Amount
$
$
597,485
92,293
20,000
709,778
Funds are transferred from the Enterprise Fund into the General Fund in lieu of property taxes and franchise fees. The
City Council approves the amount transferred annually during the budget process. In addition, the Enterprise Fund
reimburses the General Fund for its use of utility services. Funds were transferred from the Hospitality Tax Fund and
the Enterprise Fund into the Capital Projects Fund to supplement project costs, and from the Hospitality Tax Fund to
the General Fund as a reimbursement.
Note 8.
Long-term Liabilities
Detail for each outstanding long-term debt and capital lease issue as of October 31, 2014 was as follows:
Principal outstanding at year end
Revenue bonds - enterprise fund
Series 2010B Combined Public Utility System Revenue Bonds – issued August 2010 in the amount of $365,000. The
interest rate on the bonds is 2.78%. The bonds are payable in ten equal, semi-annual installments of $39,306 due on
February 1 and August 1 of each year, beginning February 1, 2011. The bonds will mature on August 15, 2015.
Series 2010 Combined Public Utility System Improvement Revenue Bonds (South Carolina Drinking Water Revolving
Loan Fund) – issued in November 2010 in the amount of $2,032,590. The interest rate on the bonds is 2.5%. The
bonds are payable in eighty quarterly installments of $32,364 beginning April 1, 2011. The bonds will mature on
January 1, 2031.
Series 2012 Combined Public Utility System Improvement Revenue Bond – issued in October 2012 in the amount of
$3,500,000. The interest rate on the bonds is 2.13%. The bonds are payable in fifteen annual installments ranging
from $140,000 to $285,000 beginning August 1, 2013. The bonds will mature on August 1, 2027.
Series 2013 Combined Public Utility System Improvement Revenue Bonds (South Carolina Drinking Water Revolving
Loan Fund) – issued in July, 2013 in the amount of $445,002. The interest rate on the bonds is 0.9%. The bonds are
payable in forty quarterly installments of $11,646 beginning January 1, 2014, and will mature on October 1, 2023.
Series 2013B Combined Public Utility System Improvement Revenue Bond – issued in July 2013 in the amount of
$4,620,000. The proceeds were used to currently refund the Series 2008 Combined Public Utility System Refunding
Bonds. The interest rate on the bonds is 2.59%. The bonds are payable in fourteen annual installments ranging from
$260,000 to $390,000 beginning August 1, 2013, and will mature on July 1, 2027. The refunding resulted in a loss on
refunding of approximately $56,700, presented on the Statement of Net Position as a deferred outflow of resources. It
will be amortized over fourteen years, which is the remaining term on the refunded bond and the term of the issued
bond. The refunding reduced the total debt service over 14 years by $536,296, and resulted in an economic gain on
refunding the bond of $78,632.
35
City of Abbeville
October 31, 2014
Note 8. Long-term Liabilities, Continued
Revenue bonds - governmental funds
Series 2013 Hospitality Fee Revenue Bond – issued in January 2013 in the amount of $307,000. The proceeds were
used to currently refund the Series 2009 General Obligation Bond. The interest rate on the bonds is 3.81%. The bonds
are payable in seven annual installments ranging from $40,000 to $48,000 beginning December 23, 2013, and will
mature on December 23, 2019. Debt issuance costs of $9,654 were expensed. The refunding will increase the total
debt service over seven years by $12,801 and resulted in an economic loss on refunding the bond of $22,028.
Notes payable - governmental fund:
Note payable executed in August 2007 in the amount of $315,000. The note is payable in 24 semi annual payments of
$16,742 at an interest rate of 4.04%, through July 29, 2019. Aerial truck and related equipment, and the taxing
authority of the City, are pledged as collateral.
Note payable executed in April 2009 in the amount of $50,000. The note is payable in 20 quarterly payments of $2,733
at an interest rate of 3.40%, through April, 2014. The taxing authority of the City is pledged as collateral.
Note payable executed in April 2012 in the amount of $160,000. The note is payable in 20 quarterly payments of
$8,516 at an interest rate of 2.41%, through April, 2014. The taxing authority of the City is pledged as collateral.
36
City of Abbeville
October 31, 2014
Note 8.
Long-term Liabilities, Continued
The following is a summary of changes in the City’s long-term obligations for the year ended October 31, 2014:
Beginning Balance
Governmental Activities:
Bonds payable:
Hospitality Fee Revenue Refunding
Bond Series 2013
$
307,000
Increases
-
$
Ending Balance
Decreases
$
40,000
$
267,000
Due Within One Year
$
41,000
Total bonds payable
307,000
-
40,000
267,000
41,000
Notes payable
2007 Fire Truck note
2009 Restoration note
2012 Fire Department Land note
176,486
5,322
129,506
-
26,521
5,322
31,229
149,965
98,277
27,618
32,174
Total notes payable
311,314
-
63,072
248,242
59,792
Capital leases:
2013 Capital lease
2014 Capital lease
371,645
-
216,000
85,498
31,304
286,147
184,696
86,684
42,330
Total capital leases
371,645
216,000
116,802
470,843
129,014
Compensated Absences
140,886
14,796
59,012
96,670
40,491
Total Governmental Activities
$
1,130,845
$
Beginning Balance
Business-Type Activities:
Bonds Payable:
2010B Series revenue bonds
2010 Series revenue bonds
2013B Series revenue bonds
Total bonds payable
$
Capital Leases:
2011 Capital lease
2012 Capital lease
2014 Capital lease
Total capital leases
Compensated Absences
Total Business-Type Activities
$
151,910
1,805,591
3,350,000
445,002
4,620,000
10,316,843
230,796
$
Increases
$
278,886
$
Ending Balance
Decreases
-
$
74,907
86,688
140,000
42,723
260,000
604,318
1,082,755
$
77,003
1,718,903
3,210,000
402,279
4,360,000
9,768,185
$
270,297
Due Within One Year
$
77,003
88,655
145,000
43,108
285,000
638,766
219,434
281,499
500,933
23,823
23,823
86,058
84,497
7,523
178,078
133,376
197,002
16,300
346,678
88,335
86,363
7,523
182,221
74,092
3,487
1,596
75,983
15,197
10,891,868
$
27,310
37
$
783,992
$
10,190,846
$
836,184
City of Abbeville
October 31, 2014
Note 8.
Presented below is a summary of the debt service requirements to maturity by year for the governmental and
business-type funds of the City:
Debt
Principal
Interest
Year ending October 31,
Capital Lease Obligations
Principal
Interest
Totals
2015
2016
2017
2018
2019
2020
$
100,792 $
103,310
106,493
77,190
79,457
48,000
18,121 $
14,650
11,051
7,667
4,623
1,829
129,014 $
130,903
132,819
66,889
11,218
-
6,220 $
4,332
2,417
706
45
-
254,147
253,195
252,780
152,452
95,343
49,829
Totals
$
515,242 $
57,941 $
470,843 $
13,720 $ 1,057,746
2015
2016
2017
2018
2019
2020 - 2024
2025 - 2029
2030 - 2031
$
638,766 $
654,164
666,614
689,113
701,665
3,701,738
2,560,528
155,597
224,312 $
209,832
194,949
179,804
164,088
573,413
147,968
2,636
182,221 $
140,833
23,624
-
6,240 $ 1,051,539
2,144
1,006,973
123
885,310
868,917
865,753
4,275,151
2,708,496
158,233
Totals
$
9,768,185 $ 1,697,002 $
346,678 $
8,507 $11,820,372
All General Obligation Bonds are direct obligations of the City, which pledged its full faith and credit upon issuance.
The Enterprise revenue bonds are to be repaid from the operations of those funds. The capital lease obligations are
special obligations of the City payable from the general revenues of the City.
There are numerous limitations, restrictions, and covenants contained in the bond indentures and ordinances. At
October 31, 2014, management believes the City is in compliance with all significant restrictions and covenants.
Interest paid on the debt issued by the City is exempt from federal income tax. The City sometimes temporarily
reinvests the proceeds of such tax-exempt debt in higher-yielding taxable securities, especially during construction
projects. The federal tax code refers to this practice as arbitrage. Excess earnings (the difference between the interest
on the debt and the investment earnings received) resulting from arbitrage must be refunded to the federal
government. Management believes the City had no arbitrage liability at October 31, 2014.
Article Eight, Section Seven of the South Carolina Constitution of 1895, as amended, provides that no City shall incur
any bonded debt which shall exceed 8% of the assessed value of the property therein and no such debt shall be
created without the electors of such City voting in favor of such further bonded debt. As of October 31, 2014, the City
had no general obligation bonded debt and $248,242 of other general obligation notes subject to the 8% limit of
approximately $851,783, resulting in an unused legal debt margin of approximately $603,541.
38
City of Abbeville
October 31, 2014
Note 8.
Capital leases:
The City has entered into lease agreements as lessee for financing the acquisition of equipment. These leases are
reported as capital leases and have been recorded at the present value of the future minimum lease payments as of
the date of their inception. The following is an analysis of equipment leased under capital leases as of October 31,
2014:
Equipment
Less: accumulated depreciation
Governmental Funds
Business-type Funds
$
$
$
488,494
(46,909)
441,585
$
942,303
(172,392)
769,911
The following is a schedule of future minimum lease payments under these capital leases, and the present value of the
net minimum lease payment at October 31, 2014.
Governmental
Funds
$
135,234
135,235
135,236
67,595
11,263
484,563
(13,720)
$
470,843
Fiscal Year Ending October 31,
2015
2016
2017
2018
2019
Total minimum lease payments
Less: amount representing interest
Present value of future minimum lease payments
Note 9.
Business-type
Funds
$
188,461
142,977
23,747
355,185
(8,507)
$
346,678
Other Information
Contingent liabilities:
The City participates in a number of federal and state assisted grant programs that are governed by various rules and
regulations of grantor agencies. These programs are subject to financial and compliance audits by the grantors or their
representatives. Such audits could lead to requests for reimbursement to the grantor agency for expenditures
disallowed under terms of the grant. The City believes it has substantially complied with the contract/grant provisions.
Based on prior experience, the City’s management believes such disallowances, if any, would not be significant;
therefore, no provision has been recorded in the accompanying government-wide and fund financial statements for
such contingencies.
39
City of Abbeville
October 31, 2014
Note 9.
Other Information, Continued
In addition, the City must apply for annual renewals of contracts and grants. Funding is subject to both increases and
reductions at the discretion of the contractors and grantors.
The City is routinely the subject of litigation by a variety of plaintiffs in the normal course of business. City management
believes that such amounts claimed by these plaintiffs, net of the applicable insurance coverage, are immaterial.
Commitments:
The City is a member of Piedmont Municipal Power Agency (PMPA). The PMPA has a 25% ownership interest in Duke
Energy Nuclear Station Unit 2. The City has a contract with PMPA to purchase the bulk of its electrical power
requirement above those provided by its hydro plant and those purchased from Southeastern Power Administration
(SEPA). PMPA sets rates and charges that are sufficient to pay all of its monthly Catawba Project Power costs and all
supplemental power costs. The City’s payment is based upon its output share of PMPA’s actual cost of owning and
operating the Catawba Project. The City is also responsible for its pro rata share of costs of distribution delivery
stations, and any costs incurred by PMPA associated therewith (but not limited to), payments to Duke Energy pursuant
to the Interconnections Agreement for the cost of protection stations owned by Duke Energy and used to protect the
safety and reliability of the Duke Energy System, the cost of distribution and transmission facilities leased from Duke
Energy, and the cost of early retirement of any Duke Energy owned equipment necessitated by changes in the capacity
of transmission facilities at delivery points. The most recent financial statements of PMPA may be obtained by
contacting PMPA at 121 Village Drive, Greer, SC 29651.
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, 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
a common risk management and insurance program. The City obtains its general risk insurance through SCMIRF. It
pays an annual premium for this coverage. For the year ended October 31, 2014, the City made premium payments
totaling approximately $167,403. There were no significant reductions in coverage in the past fiscal year and there
were no settlements exceeding insurance coverage in the past three fiscal years.
The City has also 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 workers’
compensation. The City pays an annual premium to SCMIT. For the year ended October 31, 2014, the City made
premium payments totaling approximately $190,305. The Trust uses reinsurance agreements to reduce its exposure to
large workers’ compensation losses. There were no significant reductions in coverage in the past fiscal year and there
were no settlements exceeding insurance coverage in the past three fiscal years.
40
City of Abbeville
October 31, 2014
Note 9.
Pension plan:
Plan Description. Substantially all City employees are members of the South Carolina Retirement System (“SCRS”) or
the Police Officers Retirement System (“PORS”) (collectively referred to as the “Plans”). The South Carolina Retirement
System and the Police Officers Retirement System are cost-sharing multi-employer defined benefit pension plans
administered by the Retirement Division of the South Carolina Public Employees Benefit Authority (“PEBA”), a
public employee retirement system. Both systems offer retirement and disability benefits, cost of living adjustments
on an ad-hoc basis, life insurance benefits and survivor benefits. The Plans’ provisions are established under Title 9 of
the SC Code of Laws. Only the South Carolina State Budget and Control Board has the authority to establish and
amend benefits.
Comprehensive Annual Financial Reports containing financial statements and required
supplementary information for the Systems are issued and publicly available by writing the South Carolina Retirement
System, P.O. Box 11960, Columbia, SC 29211-1960.
Employees eligible for service retirement may participate in the Teacher and Employee Retention Incentive Program
(TERI). TERI participants may retire and begin accumulating retirement benefits on a deferred basis without
termination employment for up to five years. Upon termination of employment or at the end of the TERI period,
whichever is earlier, participants will begin receiving monthly service retirement benefits which will include any cost of
living adjustments granted during the TERI period. Because participants are considered retired during the TERI period,
they do not make SCRS contributions, do not earn service credit, and are ineligible to receive group life insurance
benefits or disability retirement benefits. Effective July 1, 2006, TERI participants who entered the program after
July 1, 2005 are required to pay the same pre-tax contribution to SCRS during the TERI period, but do not earn service
credit. The TERI program is scheduled to close June 30, 2018.
Funding Policy. Both employees and employers are required to contribute to the Plan under authority of Title 9 of the
SC Code of Laws. The employee required contribution rate increased from 7.5% and 7.84% to 8% and 8.41% of gross
salary for SCRS and PORS participants, respectively, effective for the quarter beginning July 1, 2014. The City was
required to contribute 10.45% of gross earnings under SCRS and 12.44% of gross earnings under PORS Class II, with the
SCRS rate increasing to 10.75 and the PORS employer rate increasing to 13.01% effective for the quarter beginning
July 1, 2014. In addition to the above rates participating employers of the South Carolina Retirement System
contribute .15% and .2% of payroll to provide a group life insurance benefit for their SCRS and PORS participants,
respectively. All employers contribute at the actuarially required contribution rates. The City contributed
approximately $255,356, $250,554, and $223,882 to the SCRS for the fiscal years 2014, 2013, and 2012, respectively.
The City contributed approximately $117,102, $110,300 and $113,170 to the PORS for the fiscal years 2014, 2013, and
2012 respectively. All amounts were 100% of the required contributions for each year. Covered payrolls for the fiscal
years 2014, 2013 and 2012 were $3,289,417, $3,316,003 and $3,053,820, respectively.
Deferred compensation plans:
The City’s employees may participate in the 457 and/or 401(k) deferred compensation plans, which are available to
state and local governmental employees and administered by a state approved nongovernmental third party. The
plans, available to all City employees, permit them to defer a portion of their salary until future years. Participation in
the plans is optional. The deferred compensation plans are not available to employees until termination, retirement,
death or unforeseeable emergency.
The plan administrator for both the 457 and 401(k) plans is the South Carolina Deferred Compensation Program, c/o
Great West Retirement Services, 8515 East Orchard Road, Greenwood Village, CO 80111 (under state contract).
41
City of Abbeville
October 31, 2014
Note 9.
Other Post Employment Benefits (OPEB):
In addition to retirement benefits, the City provides post-retirement health care benefits to all employees who meet
the criteria for retirement under the South Carolina Retirement and Police Retirement Systems and who have worked
for at least 25 years. Expenditures for post-retirement health care benefits are recognized when premiums are paid.
During the year ended October 31, 2014, expenditures of $63,180 were recognized for post-retirement health care for
14 retirees.
Plan description, contribution information and funding policies
The City is a participant in the South Carolina Other Retirement Benefits Employer Trust (SC ORBET) for medical and
dental coverage, and eligible retirees and their spouses are allowed to continue coverage in accordance with the City’s
Other Postemployment Benefit Plan (OPEB).
A City employee hired prior to January 1, 2000 who retires with 25 years or more consecutive service with the City will
have the option of continuing their medical insurance coverage at the time of retirement. Employees hired after that
date are not eligible for this benefit. The City will pay up to $405 per month for only the retiree’s insurance coverage,
and the retiree, if he/she chooses to do so, may cover his/her dependents at his/her own expense. Any amount in
excess of $405 each month is the responsibility of the retiree. The retiree will also reimburse the City each month for
the required amount for dependent coverage. The SC ORBET Trust blends the experience of active employees and
retirees, including spouses and dependents, in determining premiums. As a result, the retirees receive an implicit rate
subsidy for spousal and dependent coverage purchased. As of October 31, 2014 there were approximately 22 retirees
receiving health benefits from the City’s plan. The City’s plan does not issue a stand-alone financial report.
Annual OPEB costs and Net OPEB Obligation
The City had an actuarial valuation performed for the plan as of July 1, 2013, for the City’s fiscal years ending in 2013
and 2014, to determine the funded status of the plan as of that date as well as the employer’s annual required
contribution (ARC) in accordance with GASB Statement 45. The ARC represents a level of funding that, if paid on an
ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities or funding
excess over a period not to exceed thirty years. The City’s annual OPEB costs and the net OPEB obligation at
October 31, 2014, was as follows:
Employer normal costs
Amortization of UAAL*
Annual required contribution (ARC)
Expenses
Annual OPEB costs
Adjustment to ARC
Interest on net OPEB obligation
Total ARC with expenses
Contributions made
Explicit benefits
Implicit benefits
Net decrease in OPEB obligation
$
Net OPEB obligation - beginning of year
37,311
62,413
99,724
3,570
103,294
(840)
823
103,277
41,753
63,180
8,600
(10,256)
16,464
Net OPEB obligation - end of year
$
* Unfunded Actuarial Accrued Liabilities (UAAL) were amortized over 30 years.
42
6,208
City of Abbeville
October 31, 2014
Note 9.
The net OPEB obligation by percentage of covered payroll is as follows:
Governmental activities (22.8%)
Business-type activities (77.2%)
The City’s annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB obligation
for 2014 was as follows:
Fiscal
Year
Ended
2014
2013
2012
2011
Annual
OPEB
Cost
$
Percentage
Contributed
103,294
125,216
121,556
90,000
Net OPEB
Obligation
110%
103%
90%
100%
$
6,208
16,464
16,189
-
Funded Status and Funding Progress
Actuarial valuations involve estimates of the value of reported amounts and assumptions about the probability of
occurrence of events far into the future. Examples include assumptions about future employment, mortality and the
healthcare cost trend. Amounts determined regarding the funded status of the plan and the annual required
contributions of the employer are subject to continual revision as actual results are compared with past expectation
and new estimates are made about the future. The schedule of funding progress presents multiyear trend information
about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued
liabilities for benefits as is presented below:
The funded status of the plans as of October 31, 2014, was as follows:
Actuarial accrued liability
Actuarial value of plan assets
$
1,685,658
163,168
Unfunded actuarial accrued liability
$
1,522,490
Funded Ratio
9.7%
Covered payroll
$
Unfunded actuarial accrued liability as a percentage of covered payroll
3,289,417
46.3%
Actuarial Methods and Assumptions
Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the
probability of occurrence of events well into the future. Examples would include assumptions about future
employment, rates of retirement, mortality, and health care cost trends. Actuarially determined amounts are subject
to continual revision as actual results are compared to past expectations and new estimates are made about the
future. Projections of benefits for financial reporting purposes are based on the substantive plan (the plan understood
by the employer and plan members) and include the types of benefits provided at the time of each valuation and the
historical pattern of sharing of benefit costs between the employer and plan members to that point.
43
City of Abbeville
October 31, 2014
Note 9.
In the actuarial valuation dated July 1, 2013 the projected unit credit cost method was used. The UAAL amortization
payment is the level of payroll required to fully amortize the UAAL over a 30 year period on an open basis. The
actuarial assumptions include a 5.0% investment rate of investment return, net of administrative and investment
expenses. Payroll growth for general participants is assumed to vary from 6.0% to 3.75% per year for the first fourteen
years of service, with a rate of 3.5% for years fifteen and beyond. Payroll growth for police participants is assumed to
vary from 10.0% to 4.25% during the first 11 years of service, with a rate of 4.0% for years twelve and beyond. The
valuation assumes a 8.5% health and dental care trend inflation rate for participants under age 65 for 2013 and
decreases 1.0% each year until 2015, then decreases 0.5% for 2016 and 2017, and thereafter 5.0% was assumed. For
participants age 65 and over, the valuation assumes a 6.5% health and dental care trend inflation rate for 2013 and
decreases 0.25% for 2014, then decreases 0.5% each year until 2017, and thereafter 5.0% was assumed. The retiree
benefit paid by the City does not increase with the assumed health and dental care inflation. General inflation is
assumed to be 2.75% per year.
Note 10. Net position / fund balance
Net position represents the difference between assets and liabilities. Net position at year end was as follows:
Governmental
Net investment in capital assets:
Net capital assets
Less: Bonds payable, net
Notes payable
Capital leases payable
Add: Unspent bond proceeds
$
Restricted for debt service
Restricted for capital outlay
Restricted for victims's assistance
Restricted for drug enforcement
Less: Unspent bond proceeds
Unrestricted
$
44
6,048,378
(267,000)
(248,242)
(470,843)
18,920
5,081,213
Business-type
$
17,603,825
(9,716,573)
(346,678)
536,787
8,077,361
93,539
159,125
22,600
25,357
(18,920)
281,701
396,524
536,787
(536,787)
396,524
1,244,576
1,954,338
6,607,490
$
10,428,223
City of Abbeville
October 31, 2014
Note 10. Net position / Fund Balance, Continued
Amounts for specific purposes by fund and fund balance classifications at October 31, 2014 were as follow:
General
Fund
Non-Major
Governmental
Funds
Total
Fund Balances:
Nonspendable
Inventories
Prepaid items
$
Restricted for:
Special revenue - Development
Special revenue - Drug enforcement
Special revenue - Debt service
General fund - Victim's assistance
Assigned to:
General fund - public safety
Unassigned (deficit)
$
Total fund balances
132,008
25,469
$
-
$
132,008
25,469
22,600
140,205
25,357
93,539
-
140,205
25,357
93,539
22,600
5,130
-
5,130
1,090,229
-
1,090,229
1,275,436
$
259,101
$
1,534,537
Note 11. Restatement
Net position as of October 31, 2013 has been restated by ($126,404) due to the implementation of GASB
Statement No. 65, Items Previously Reported as Assets and Liabilities. With the implementation of GASB
Statement No. 65, the City is required to write off previous bond issuance costs which were being amortized over
the life of the bonds and to expense these amounts in the year of issuance.
45
REQUIRED SUPPLEMENTARY INFORMATION
City of Abbeville
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
General Fund
ORIGINAL
BUDGET
REVISED
BUDGET
ACTUAL
VARIANCE
REVENUES
Taxes and penalties
Licenses, permits and fees
Intergovernmental
Charges for service
Building rent and recreation fees
Fines and forfeits
Interest earnings
Miscellaneous
$
Total revenues
1,295,960
1,316,500
329,200
586,000
31,000
109,150
800
44,000
$
1,295,960
1,316,500
331,550
586,000
31,000
109,150
800
45,000
$
1,369,350
1,376,689
231,495
577,576
20,575
75,533
676
50,796
$
73,390
60,189
(100,055)
(8,424)
(10,425)
(33,617)
(124)
5,796
3,712,610
3,715,960
3,702,690
(13,270)
810,399
1,797,245
1,348,808
347,143
116,530
810,399
1,798,595
1,348,808
349,143
116,530
809,007
1,662,701
1,050,066
360,859
57,288
1,392
135,894
298,742
(11,716)
59,242
223,020
-
223,020
-
179,874
17,389
43,146
(17,389)
4,643,145
4,646,495
4,137,184
EXPENDITURES
Current
General government
Public safety
Public works
Parks and recreation
Nondepartmental
Debt service
Principal retirement
Interest
Total expenditures
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
509,311
(930,535)
(930,535)
(434,494)
496,041
300,000
56,000
580,000
-
300,000
56,000
580,000
-
216,000
12,837
597,485
(92,293)
(84,000)
(43,163)
17,485
(92,293)
Total other financing sources
936,000
936,000
734,029
(201,971)
NET CHANGE IN FUND BALANCE
5,465
5,465
299,535
294,070
559,198
559,198
975,901
416,703
Issuance of lease purchase note
Transfers in
Transfers out
FUND BALANCE, beginning of year
FUND BALANCE, end of year
$
564,663
46
$
564,663
$
1,275,436
$
710,773
City of Abbeville
Required Supplemental Information
Schedule of Funding Progress - Other Postemployment Benefits
The City's annual required contribution (ARC), actual contributions and the percent funded are as follows:
Fiscal Year
Ended
2014
Annual
Required
Contribution
(ARC)
Actual
Contributions
$
$
99,724
Percent Funded
113,533
113.8%
2013
121,556
125,140
102.9%
2012
121,556
109,027
89.7%
2011
90,000
90,000
100.0%
2010
87,000
87,000
100.0%
The funded status and funding progress of the plan was as follows:
Actuarial
valuation
date
Actuarial
Actuarial value
accrued
Unfunded AAL
Fiscal year of plan assets liability (AAL)
(UAAL)
ended
(a)
(b)
( b-a )
7/1/2013
10/31/2014
7/1/2013
$
Funded ratio
( a/b )
163,168
$ 1,685,658 $
1,522,490
9.7%
10/31/2013
84,295
1,685,658
1,601,363
7/1/2011
10/31/2012
78,211
1,561,163
7/1/2011
10/31/2011
32,399
7/1/2010
10/31/2010
-
UAAL as a
Covered payroll percentage of
(c )
covered payroll
3,289,417
46.3%
5.0%
2,817,606
56.8%
1,482,952
5.0%
3,018,220
49.1%
1,186,000
1,153,601
2.7%
1,718,000
67.1%
1,186,000
1,186,000
0.0%
1,718,000
69.0%
47
$
OTHER SUPPLEMENTARY INFORMATION
City of Abbeville
General Fund
ORIGINAL
BUDGET
GENERAL GOVERNMENT
City Council
Personnel services
Operating expenditures
Total city council
$
75,946
58,900
134,846
FINAL
BUDGET
$
75,946
58,900
134,846
ACTUAL
$
70,900
52,883
123,783
VARIANCE
$
5,046
6,017
11,063
Administrative services
Personnel services
Total administrative services
358,447
139,450
497,897
358,447
139,450
497,897
345,521
182,797
528,318
12,926
(43,347)
(30,421)
Municipal court
Personnel services
Total municipal court
109,556
11,300
120,856
109,556
11,300
120,856
81,569
10,180
91,749
27,987
1,120
29,107
56,800
56,800
56,800
56,800
65,157
65,157
(8,357)
(8,357)
810,399
810,399
809,007
1,392
Police
Personnel services
Capital outlay
Total police
1,076,786
235,977
10,000
1,322,763
1,076,786
236,977
10,000
1,323,763
1,026,408
230,896
2,943
1,260,247
50,378
6,081
7,057
63,516
Fire and codes
Personnel services
Capital outlay
Total fire and codes
310,743
78,999
84,740
474,482
310,743
79,349
84,740
474,832
326,233
76,221
402,454
1,797,245
1,798,595
1,662,701
144,529
98,173
6,000
248,702
144,529
98,173
6,000
248,702
146,174
88,002
234,176
Community development
Total community development
Total general government
PUBLIC SAFETY
Total public safety
(15,490)
3,128
84,740
72,378
135,894
PUBLIC WORKS
Administration
Personnel services
Capital outlay
Total administration
(1,645)
10,171
6,000
14,526
(Continued)
48
City of Abbeville
General Fund
PUBLIC WORKS, Continued
ORIGINAL
BUDGET
FINAL
BUDGET
ACTUAL
VARIANCE
Street
Personnel services
Capital outlay
Total street
303,662
92,400
120,000
516,062
303,662
92,400
120,000
516,062
292,212
116,362
408,574
11,450
(23,962)
120,000
107,488
Sanitation
Personnel services
Capital outlay
Total sanitation
189,744
114,300
280,000
584,044
189,744
114,300
280,000
584,044
174,340
137,149
95,827
407,316
15,404
(22,849)
184,173
176,728
1,348,808
1,348,808
1,050,066
227,643
119,500
347,143
227,643
121,500
349,143
227,203
133,656
360,859
440
(12,156)
(11,716)
3,000
500
3,000
1,400
3,000
330
1,000
14,600
14,800
900
9,000
5,000
60,000
116,530
3,000
500
3,000
1,400
3,000
330
1,000
14,600
14,800
900
9,000
5,000
60,000
116,530
4,909
1,136
3,102
1,190
3,598
211
485
12,847
19,440
1,242
9,128
57,288
(1,909)
(636)
(102)
210
(598)
119
515
1,753
(4,640)
(342)
(128)
5,000
60,000
59,242
223,020
223,020
223,020
223,020
179,874
17,389
197,263
43,146
(17,389)
25,757
$ 4,643,145
$ 4,646,495
Total public works
298,742
PARKS AND RECREATION
Personnel services
Total parks and recreation
NONDEPARTMENTAL
Office machine operations
Printing and copying
Subscriptions and dues
Nondepartmental advertising
Sales & use tax
Miscellaneous operating expenditures
Insurance claims deductible
Post-retirement benefits
Hospitalization/dental retirees
Condolences
Unemployment compensation
Disaster Response
Contingencies
Total nondepartmental
DEBT SERVICE
Principal retirement
Interest
Total debt service
Total expenditures
49
$
4,137,184
$
509,311
City of Abbeville
Non-major Special Revenue and Capital Projects Funds
Combining Balance Sheet
October 31, 2014
Special Revenues
Hospitality
Tax
JAG Grant
ASSETS
$
Total assets
-
$
174,731
50,166
Drug
Forfeitures
$
3,561
16,917
Capital Projects
CDBG
Fire Truck
Capital
Projects
$
10,286
-
$
-
Total
Governmental
Funds
CDBG
Streetscape
$
5,049
-
$
193,627
67,083
-
224,897
20,478
10,286
-
5,049
260,710
-
1,439
170
-
-
-
1,609
-
1,439
170
-
-
-
1,609
-
129,919
93,539
20,308
-
10,286
-
-
5,049
-
140,205
25,357
93,539
-
223,458
20,308
10,286
-
5,049
259,101
LIABILITIES
Accounts payable
Total liabilities
FUND BALANCES
Restricted
Special revenue - development
Special revenue - public safety
Special revenue - debt service
Total fund balances
Total liabilities and fund balances
$
-
$
224,897
$
50
20,478
$
10,286
$
-
$
5,049
$
260,710
City of Abbeville
Non-major Special Revenue and Capital Projects Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Special Revenues
JAG Grant
REVENUES
Intergovernmental
Taxes
Miscellaneous revenue
Interest and investment earnings
$
Total revenues all sources
EXPENDITURES
Current:
Public safety
Development
Debt service
Principal
Interest
Bond issuance costs
Total expenditures
Excess of revenues over (under) expenditures
Transfer in
Transfer out
Total other financing sources (uses)
Net change in fund balances
Fund balances (deficit), beginning of year
Fund balances, end of year
$
Capital Projects
Hospitality
Tax
367
$
Drug
Forfeitures
196,068
89
$
Capital
Projects
31
$
Total
CDBG
Fire Truck
328,166
3
$
CDBG
Streetscape
394,090
-
$
Governmental
Funds
39,599
49
-
$
761,855
196,068
49
490
367
196,157
31
328,169
394,090
39,648
958,462
-
10,955
5,421
-
563,660
446,884
-
34,599
452,305
609,214
-
40,000
11,144
-
-
-
-
-
40,000
11,144
-
-
62,099
5,421
563,660
446,884
34,599
1,112,663
367
134,058
(5,390)
(235,491)
(52,794)
5,049
(154,201)
-
(20,000)
-
62,048
-
50,245
-
-
112,293
(20,000)
-
(20,000)
-
62,048
50,245
-
92,293
367
114,058
(5,390)
(173,443)
(2,549)
5,049
(61,908)
(367)
109,400
25,698
183,729
2,549
-
321,009
5,049
259,101
-
$
223,458
$
51
20,308
$
10,286
$
-
$
City of Abbeville
Enterprise Fund
Statement of Revenues, Expenses and Changes in Fund Net Position
OPERATING REVENUES
Sales to customers
Sales to public authorities
Reconnection and tapping fees
Pole attachment fees
Other user fees
DEPARTMENT
Water
Electric
$
TOTAL OPERATING REVENUES
7,987,071
424,745
120,091
81,036
54,749
$
1,956,091
4,290
5,920
22,812
Sewer
$
1,136,797
1,815
13,687
Eliminations
$
Total
(429,035)
-
$
11,079,959
127,826
81,036
91,248
8,667,692
1,989,113
1,152,299
(429,035)
11,380,069
272,036
5,333,305
656,035
18,538
201,767
796,838
878,610
290,900
7,724
391,439
332,016
380,591
218,295
4,635
208,140
199,209
(429,035)
-
1,102,202
5,333,305
1,165,230
30,897
801,346
1,328,063
7,278,519
1,900,689
1,010,870
(429,035)
9,761,043
OPERATING EXPENSES
Plant operations
Purchased power
Distribution
Public relations
Depreciation
General administration
TOTAL OPERATING EXPENSES
OPERATING INCOME
$
1,389,173
$
88,424
$
141,429
$
-
1,619,026
NONOPERATING REVENUES (EXPENSES)
Investment income
Interest expense
Other revenues
3,705
(270,079)
53,079
TOTAL NONOPERATING REVENUES (EXPENSES)
(213,295)
INCOME BEFORE TRANSFERS
1,405,731
TRANSFERS OUT
(597,485)
CHANGE IN NET POSITION
808,246
NET POSITION, BEGINNING OF YEAR, AS PREVIOUSLY REPORTED
9,746,381
PRIOR PERIOD ADJUSTMENT (SEE NOTE 11)
(126,404)
NET POSITION, BEGINNING OF YEAR, AS RESTATED
9,619,977
NET POSITION, END OF YEAR
$
52
10,428,223
City of Abbeville
Agency Fund - Fireman's Insurance and Inspection
Statement of Changes in Fiduciary Assets and Liabilities
Balance
October 31, 2013
Additions
Deletions
Balance
October 31, 2014
$
30,532
$
32,675
$
25,957
$
37,250
TOTAL ASSETS
$
30,532
$
32,675
$
25,957
$
37,250
Due to designated recipients
$
30,532
$
32,675
$
25,957
$
37,250
$
30,532
$
32,675
$
25,957
$
37,250
TOTAL LIABILITIES
53
City of Abbeville
Schedule of Fines, Assessments and Surcharges
Court fines and assessments
Court fines and assessments collected
Court fines and assessments retained by the City
Total court fines and assessments remitted to the State Treasurer
Court surcharges
Court surcharges collected
Court surcharges retained by the City
Total court surcharges remitted to the State Treasurer
$
65,833
38,758
$
27,075
$
23,612
8,386
$
15,226
$
25,245
Victims fund
Funds available for carry forward, beginning of year
Court assessments allocated to victim fund - November 1, 2013 through October 31, 2014
Victim fund expenditures
Funds available for carry forward, end of year
8,386
(11,031)
$
54
22,600
STATISTICAL SECTION (UNAUDITED)
City of Abbeville
Statistical Section (Unaudited)
This part of the City of Abbeville's comprehensive annual financial report presents detailed information as
context for understanding what the information in the financial statements, note disclosures, and required
supplementary information says about the government's overall financial health.
Contents
Pages
Financial Trends
55 - 60
These schedules contain trend information to help the reader understand how
the government's financial performance and well-being have changed over time.
Revenue Capacity
61 - 73
These schedules contain information to help the reader assess the government's most
significant local revenue source, utility system receipts. Additional data is presented on
property tax revenue, the most significant general fund revenue source and a
traditional revenue source of interest to readers of this report.
Debt Capacity
74 - 78
These schedules present information to help the reader assess the affordability of the
government's current levels of outstanding debt and the government's ability to issue
additional debt in the future.
Demographic and Economic Information
79 - 80
These schedules offer demographic and economic indicators to help the reader
understand the environment within which the government's financial activities take
place.
Operating Information
These schedules contain service and infrastructure data to help the reader understand
how the information in the government's financial report relates to the services the
government provides and the activities it performs.
Sources:
Unless otherwise noted, the information in these schedules is derived from the
comprehensive annual financial reports for the relevant year.
81 - 85
City of Abbeville
Schedule 1 - Net Position by Component
Last ten fiscal years (accrual basis of accounting)
Restricted
Unrestricted
Total governmental activities net position
Restricted
Unrestricted
Total business-type activities net position
Primary government
Restricted
Unrestricted
Total primary government net position
$
$
$
$
$
$
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
1,861,330 $
440,749
2,302,079 $
2,231,329 $
641,623
2,872,952 $
2,517,643 $
925,504
3,443,147 $
2,445,983 $
966,338
3,412,321 $
2,757,332 $
941,210
3,698,542 $
3,040,476 $
998,224
4,038,700 $
3,691,710 $
116,789
571,842
4,380,341 $
4,179,515 $
125,181
667,043
4,971,739 $
4,524,888 $
374,669
831,898
5,731,455 $
5,081,213
281,701
1,244,576
6,607,490
5,558,700 $
773,603
1,948,102
8,280,405 $
5,646,065 $
742,226
1,527,870
7,916,161 $
5,653,110 $
796,724
2,154,362
8,604,196 $
6,159,450 $
454,822
1,478,493
8,092,765 $
6,139,362 $
193,299
1,685,829
8,018,490 $
6,778,786 $
542,529
2,143,356
9,464,671 $
7,325,283 $
328,069
2,386,547
10,039,899 $
7,686,866 $
467,040
1,477,663
9,631,569 $
8,200,107 $
383,773
1,162,501
9,746,381 $
8,077,361
396,524
1,954,338
10,428,223
7,420,030 $
773,603
2,388,851
10,582,484 $
7,877,394 $
742,226
2,169,493
10,789,113 $
8,170,753 $
796,724
3,079,866
12,047,343 $
8,605,433 $
454,822
2,444,831
11,505,086 $
8,896,694 $
193,299
2,627,039
11,717,032 $
9,819,262 $
542,529
3,141,580
13,503,371 $
11,016,993 $
444,858
2,958,389
14,420,240 $
11,866,381 $
592,221
2,144,706
14,603,308 $
12,724,995 $
758,442
1,994,399
15,477,836 $
13,158,574
678,225
3,198,914
17,035,713
Source: Comprehensive Annual Financial Report for relevant year
55
City of Abbeville
Schedule 2 - Changes in Net Position
Expenses
General government
Public Safety
Public Works
Non-departmental
Culture and recreation
Community Development
Interest and fiscal charges
Total governmental activities expenses
Electric
Water
Sewer
Total business-type activities net expenses
Total primary government expenses
2005
$
$
$
$
646,890
1,460,571
853,104
112,258
294,441
187,996
16,331
3,571,591
4,861,355
1,750,157
800,509
7,412,021
2006
$
$
$
$
2007
684,265
1,686,925
842,985
329,208
287,774
19,958
3,851,115
$
5,593,011
1,531,662
830,709
7,955,382
$
$
$
2008
733,050
1,668,887
959,457
288,925
22,120
13,933
3,686,372
$
5,335,427
1,551,959
841,453
7,728,839
$
$
$
2009
957,446
1,851,540
1,007,278
364,849
189,097
27,267
4,397,477
$
5,880,037
1,618,858
988,372
8,487,267
$
$
$
2010
935,050
1,905,620
1,013,214
345,546
329,022
54,139
4,582,591
$
5,797,996
1,662,270
915,596
8,375,862
$
$
$
2011
1,016,772
1,840,893
1,021,972
343,213
62,090
52,662
4,337,602
$
5,888,206
1,791,891
930,874
8,610,971
$
$
$
2012
939,521
1,864,572
1,110,741
334,890
106,862
39,903
4,396,489
$
6,352,060
2,062,047
965,108
9,379,215
$
$
$
2013
953,528
1,882,218
1,078,527
335,074
120,399
25,688
4,395,434
$
6,620,478
2,023,546
1,045,041
9,689,065
$
$
$
2014
545,702
1,747,188
747,102
359,813
407,766
39,285
3,846,856
$
6,607,982
2,019,909
1,077,730
9,705,621
$
7,048,462
1,944,080
1,038,580
$ 10,031,122
$
789,202
1,786,267
733,434
343,797
727,772
27,690
4,408,162
$ 10,983,612
$ 11,806,497
$ 11,415,211
$ 12,884,744
$ 12,958,453
$ 12,948,573
$ 13,775,704
$ 14,084,499
$ 13,552,477
$ 14,439,284
$
$
1,216,416
12,574
409,632
371,148
289,572
2,299,342
$
1,373,930
23,494
505,872
73,933
246,397
2,223,626
$
1,421,661
13,527
574,892
58,942
200,618
2,269,640
$
1,347,649
15,135
637,860
36,499
472,873
2,510,016
$
1,322,700
19,780
673,038
35,012
298,197
2,348,727
$
1,323,550
21,745
732,529
13,698
718,069
2,809,591
$
1,358,114
31,030
794,657
12,932
495,776
2,692,509
$
1,472,536
34,450
774,512
13,620
49,600
2,344,718
$
5,893,297
1,258,789
652,092
90,000
7,894,178
$
6,084,356
1,406,879
752,154
52,389
8,295,778
$
6,051,728
1,430,399
817,532
34,014
8,333,673
$
6,328,546
1,498,632
861,127
8,688,305
$
7,157,470
1,745,391
1,007,238
576,556
$ 10,486,655
$
7,274,298
1,999,441
1,128,016
23,341
$ 10,425,096
$
6,792,271
1,956,880
1,099,266
9,848,417
$
7,227,019
2,013,794
1,111,171
$ 10,351,984
$
8,242,947
1,984,823
1,152,299
$ 11,380,069
$ 11,198,321
$ 12,835,382
$ 13,234,687
$ 12,540,926
$ 12,696,702
$ 14,296,206
Continued
Program Revenues
Charges for services:
General government
Other activities
Total governmental activities program revenues
Charges for services:
Electric
Water
Sewer
Total business-type activities program revenues
$
Total primary government program revenues
$
731,530
31,948
707,937
297,281
1,768,696
$
$
5,856,958
1,298,451
651,923
7,807,332
$
$
$
9,576,028
$ 10,193,520
$
$
$ 10,519,404
$
$
$ 10,603,313
56
$
$
$
$
$
$
$
$
1,376,689
20,575
739,713
17,305
761,855
2,916,137
City of Abbeville
Schedule 2 - Changes in Net Position
2005
Net (expense)/revenue
Total primary government net expense
General Revenues and Other Changes in
Net Position
Taxes
Property taxes
Sales taxes
Hospitality and Accomodations taxes not restricted
Intergovernmental not restricted
Gain (Loss) on disposal of capital assets
Investment Income
Miscellaneous
Transfers
Intergovernmental not restricted
Gain (Loss) on disposal of capital assets
Investment Income
Miscellaneous
Contributions and Donations
Loss on Disposal of Capital Assets
Transfers
Change in Net Position
Total primary government
2006
2007
2008
2009
2010
2011
2012
2013
2014
$ (1,802,895) $ (1,551,773) $
338,740
(61,204)
$ (1,464,155) $ (1,612,977) $
(1,462,746) $
566,939
(895,807) $
(2,127,837) $
(153,594)
(2,281,431) $
(2,072,575) $
312,443
(1,760,132) $
(1,988,875) $
1,875,687
(113,188) $
(1,586,898) $
1,045,881
(541,017) $
(1,702,925) $
159,352
(1,543,573) $
(1,502,138) $
646,363
(855,775) $
(1,492,025)
1,348,947
(143,078)
$ 1,230,499 $ 1,191,495 $
137,890
145,801
153,681
34,917
159,502
162,816
4,545
20,941
19,679
11,405
67,779
384,292
495,614
$ 2,098,210 $ 2,122,646 $
1,155,075 $
144,451
35,153
177,123
21,464
40,001
459,674
2,032,941 $
1,167,819 $
164,098
85,116
191,937
18,506
39,563
429,972
2,097,011 $
1,300,055 $
173,816
218,471
175,717
5,113
55,972
429,652
2,358,796 $
1,276,550 $
181,814
216,643
149,129
6,126
48,745
450,026
2,329,033 $
893,968 $
156,255
219,891
109,029
735
57,363
491,298
1,928,539 $
1,017,567 $
170,528
230,227
112,195
283
107,286
656,237
2,294,323 $
1,101,631 $
166,250
230,126
97,035
800
58,755
607,257
2,261,854 $
1,127,468
226,325
237,183
127,586
1,166
50,847
597,485
2,368,060
$
90,000 $
- $
72,740
43,540
56,433
228,810
63,401
(384,292)
(495,614)
$
(21,942) $ (303,040) $
$ 2,076,268 $ 1,819,606 $
- $
494,046
76,724
10,000
(459,674)
121,096 $
2,154,037 $
- $
4,985
50,275
16,875
(429,972)
(357,837) $
1,739,174 $
- $
1,755
5,054
16,875
19,250
(429,652)
(386,718) $
1,972,078 $
- $
3,595
16,925
(450,026)
(429,506) $
1,899,527 $
- $
3,770
16,875
(491,298)
(470,653) $
1,457,886 $
- $
3,821
84,734
(656,237)
(567,682) $
1,726,641 $
- $
7,994
67,712
(607,257)
(531,551) $
1,730,303 $
3,705
53,079
(597,485)
(540,701)
1,827,359
$
570,195 $
688,035
1,258,230 $
(30,826) $
(511,431)
(542,257) $
286,221 $
(74,275)
211,946 $
340,158 $
1,446,181
1,786,339 $
341,641 $
575,228
916,869 $
591,398 $
(408,330)
183,068 $
759,716 $
114,812
874,528 $
876,035
808,246
1,684,281
$
295,315 $
316,798
612,113 $
570,873 $
(364,244)
206,629 $
(1) Business-type activities do not reflect eliminations for service and operating expenses between departments (water, sewer, and electrical).
57
City of Abbeville
Schedule 3 - Fund Balances of Governmental Funds
Last ten fiscal years (modified accrual basis of accounting)
2005
General Fund
Reserved
Unreserved
Restricted
Nonspendable
Assigned
Unassigned
$
Total general fund
All other governmental funds
Unreserved, reported in:
Special revenue funds
Restricted
Unassigned
Total all other governmental funds
Total all governmental funds
$
385,875
-
2006
$
28,408
445,108
-
2007
$
40,191
682,203
-
2008
$
2009
46,398
765,069
-
$
45,068
601,828
-
2010
$
41,131
571,260
-
2011
$
52,096
2,375
504,727
2012
$
23,652
42,741
2,024
663,339
2013
$
53,293
49,379
971
872,258
385,875
473,516
722,394
811,467
646,896
612,391
559,198
731,756
975,901
52,296
52,296
53,206
53,206
64,684
64,684
112,918
112,918
188,235
188,235
189,085
189,085
116,789
116,789
101,529
(367)
101,162
321,376
(367)
321,009
438,171
$
526,722
$
787,078
$
924,385
$
835,131
Note: GASB 54, Fund Balance Reporting and Governmental Fund Type Definitions was implemented in fiscal year 2011.
58
$
801,476
$
675,987
$
832,918
$
1,296,910
2014
$
22,600
157,477
5,130
1,090,229
1,275,436
259,101
259,101
$
1,534,537
City of Abbeville
Schedule 4 - Changes in Fund Balances of Governmental Funds
Revenues
Taxes and Penalties
Licenses and permits
Intergovernmental
Grants
Building Rent and Recreation Fees
Fines
Interest Earned
Other
Total Revenues
Expenditures
General government
Public safety
Public Works
Recreation
Development
Nondepartmental
Debt Service:
Principal Retirement
Interest
Debt issuance costs
Total expenditures
Excess of revenues
over (under) expenditures
$
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
1,352,230 $
987,353
637,070
357,357
12,709
63,516
20,941
39,790
3,470,966
1,279,399 $
1,216,416
823,536
357,103
12,574
52,529
19,679
67,779
3,829,015
1,305,617 $
1,373,930
496,795
405,695
23,494
100,177
21,464
53,798
3,780,970
1,515,456 $
1,421,661
536,289
386,780
13,527
103,320
18,506
39,563
4,035,102
1,616,260 $
1,347,649
258,333
440,526
509,372
15,135
114,718
5,113
55,972
4,363,078
1,578,176 $
1,322,700
230,395
491,619
333,209
19,780
100,153
6,126
48,745
4,130,903
1,459,284 $
1,323,550
295,336
553,360
625,131
21,745
99,498
735
53,573
4,432,212
1,444,975 $
1,358,114
213,551
559,908
495,776
31,030
149,090
283
89,117
4,341,844
1,451,012 $
1,472,536
203,324
591,212
49,600
34,450
91,676
800
68,833
3,963,443
1,565,418
1,376,689
993,350
577,576
20,575
75,533
1,166
50,845
4,661,152
668,185
1,462,794
930,295
273,153
187,996
112,258
695,675
1,655,809
1,137,616
355,600
287,774
-
846,281
2,035,932
1,027,974
341,314
22,120
50,694
852,763
1,842,892
1,093,496
344,778
189,098
77,464
932,871
1,903,970
1,183,346
310,421
415,096
68,058
873,867
1,749,358
1,115,200
347,982
654,328
66,925
870,363
1,778,166
1,083,344
307,308
721,261
61,026
827,935
1,959,347
966,310
301,907
705,737
84,077
789,886
1,723,269
1,021,949
350,222
360,540
57,416
809,007
2,115,006
1,050,066
360,859
609,214
57,288
96,630
17,628
3,748,939
103,250
21,897
4,257,621
127,401
13,933
4,465,649
162,755
27,267
4,590,513
201,017
54,139
5,068,918
187,792
42,636
5,038,088
191,159
40,162
5,052,789
143,780
27,461
5,016,554
221,067
30,907
9,654
4,564,910
219,874
28,533
5,249,847
(277,973)
(428,606)
(684,679)
(555,411)
(705,840)
(907,185)
(620,577)
(674,710)
(601,467)
(588,695)
Continued
59
City of Abbeville
Schedule 4 - Changes in Fund Balances of Governmental Funds, continued
2005
Other Financing sources (uses)
Bond proceeds
Issuance of lease purchase notes
Payment of refunded bond
Transfers in
Transfers out
Total Other Financing Sources
Net Change in fund balances
2006
2007
2008
2009
2010
$
65,160
384,292
449,452
$
21,543
495,614
517,157
$
405,000
80,361
459,674
945,035
$
- $
262,746
441,353
(11,381)
692,718
50,000
136,934
429,652
616,586
$
171,479
$
88,551
$
260,356
$
137,307
(89,254) $
Debt service as a percentage
of noncapital expenditures*
3%
3%
4%
5%
$
6%
$
2011
400,000
21,989
1,515
450,026
873,530
60
2013
$
- $
3,790
591,930
(100,632)
495,088
160,000 $
15,404
679,341
(23,104)
831,641
(33,655) $
(125,489) $
156,931
6%
* Noncapital expenditures less capital outlay (to the extent capitalized for the government-wide statement of net position) and expenditures for capitalized assets
included with the function expenditure categories. This formula adds principal and interest and divides them by the total expenditures less capital outlay from the
reconciliation of the statement of revenues, expenditures and changes in fund balance of governmental funds to the statement of activities.
2012
6%
4%
$
2014
307,000 $
435,000
(295,808)
12,010
1,051,534
(444,277)
1,065,459
463,992
7%
$
216,000
12,837
709,778
(112,293)
826,322
237,627
6%
City of Abbeville
Schedule 5 - Governmental Activities Tax and Fee Revenues by Source
Fiscal
Year
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Property
Tax
$
1,101,716 $
1,098,681
1,045,523
1,167,819
1,300,055
1,276,550
1,459,284
1,444,975
1,451,012
1,565,418
Business
License Tax
and Permits
987,353
1,090,904
1,236,490
1,282,014
1,186,628
1,167,624
1,152,472
1,200,104
1,312,512
1,209,193
Sanitation
Fees
$
329,183
335,133
365,772
360,037
382,653
431,397
493,319
547,831
581,191
566,752
Fines
and
Forfeitures
Franchise
Fees
$
61
109,838
125,512
137,440
139,647
161,021
155,076
171,078
158,010
160,024
167,496
$
63,516
52,529
100,177
103,320
114,718
100,153
99,498
149,090
91,676
75,533
Other
$
879,360 $
1,126,256
895,568
982,265
1,218,003
1,000,103
1,056,561
841,834
367,028
1,076,760
Total
3,470,966
3,829,015
3,780,970
4,035,102
4,363,078
4,130,903
4,432,212
4,341,844
3,963,443
4,661,152
City of Abbeville
Schedule 6 - Assessed Value and Estimated Actual Value of Taxable Property
Last ten fiscal years
Real Property
Fiscal
Year
Tax
Levy Year
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Personal Property
Residential
Property
$
6,773,276
6,774,616
6,710,048
6,754,127
7,067,940
7,044,168
6,964,958
7,148,092
7,096,000
7,513,232
Motor
Vehicles
$
1,442,731 $
1,320,353
1,225,000
1,191,506
1,136,786
1,016,715
937,552
1,063,309
1,141,942
1,177,695
Other
Less:
Tax Exempt
Real Property*
3,057,089 $
2,744,677
2,273,398
4,371,264
4,132,062
4,009,862
2,079,686
1,755,367
1,954,829
1,953,390
941,770 $
932,660
921,174
895,630
919,090
918,208
949,580
924,301
916,040
949,708
Total Taxable
Assessed Value
10,331,326
9,906,986
9,287,272
11,421,267
11,417,698
11,152,537
9,032,616
9,042,467
9,276,731
9,694,609
Total
Direct
Tax Rate
99.0
99.0
99.0
99.0
99.0
101.0
101.0
101.0
101.0
99.1
Estimated
Actual Value
$
Source: Abbeville County Assessor.
Note: Commercial property unavailable until 2009. Total real property (residential and commercial) are accounted for under Residential Property for all ten tax years.
* Senior Citizen Homestead Exemptions received from state.
62
179,830,106
181,192,886
177,351,607
198,653,613
201,625,853
198,888,669
175,721,887
178,237,327
180,500,657
189,426,790
Assessed Value
as Percentage of
Actual Value
5.75%
5.47%
5.24%
5.75%
5.66%
5.61%
5.14%
5.07%
5.14%
5.12%
City of Abbeville
Schedule 7 - Property Tax Rates
Direct and Overlapping Governments
Overlapping Rates
Fiscal
Year
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
City of Abbeville
Debt
Operating
Service
Millage
Millage
99.0
99.0
99.0
99.0
99.0
99.0
99.0
99.0
99.0
97.1
N/A
N/A
N/A
N/A
N/A
2.0
2.0
2.0
2.0
2.0
Total
City
Millage
99.0
99.0
99.0
99.0
99.0
101.0
101.0
101.0
101.0
99.1
County
Debt
Operating
Service
Millage
Millage
79.0
79.5
81.9
99.7
102.7
109.4
104.0
107.5
107.5
109.4
Total
County
Millage
6.8
8.3
7.8
3.5
4.0
6.8
8.8
8.8
8.8
8.8
85.80
87.80
89.70
103.20
106.70
116.20
112.80
116.30
116.30
118.20
Operating
Millage
160.0
189.7
174.0
171.1
170.8
173.8
176.7
176.7
179.7
183.4
School District
Debt
Service
Millage
34.1
37.1
34.4
22.0
26.3
37.2
24.4
24.4
31.2
31.2
Total
School
Millage
194.10
226.80
208.40
193.10
197.10
211.00
201.10
201.10
210.90
214.60
Special
Districts
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
Overlapping rates are those of local and county governments that apply to property owners within the City of Abbeville.
Not all overlapping rates apply to all City of Abbeville property owners (e.g., the rates for special districts apply only to the proportion of the government's property
owners whose property is located within the geographic boundaries of the special district.)
Source: Abbeville County Assessor.
63
Total
Direct &
Overlapping
Rates
378.90
413.60
397.10
395.30
402.80
428.20
414.90
418.40
428.20
431.90
City of Abbeville
Schedule 8 - Principal Property Taxpayers
Current and nine years ago
2014
Total
Assessed
Value
Taxpayer
West Carolina Communications, LLC
Sage Automotive Interiors, Inc.
South Carolina Electric and Gas
Ingles Market
Little River Electric Cooperative, Inc.
Abbeville Arms
Frontier Communications of Carolinas
Abbeville Nursing Home
Hickory Heights Apartments
Abbeville TEI Diversified
Milliken & Company
Verizon South
Charter Communications
Hamrick, Fitzhugh etal
Morro Palms Shopping Center
$
713,220
330,910
205,760
169,960
169,320
117,390
105,260
96,720
91,380
91,290
Rank
2005
Percentage
of Total
Taxable
Assessed
Value
1
2
3
4
5
6
7
8
9
10
7.36%
3.41%
2.12%
1.75%
1.75%
1.21%
1.09%
1.00%
0.94%
0.94%
Source: Abbeville County
64
Rank
Percentage
of Total
Taxable
Assessed
Value
137,890
127,890
129,570
107,300
3
5
4
7
1.33%
1.24%
1.25%
1.04%
92,670
10
0.90%
2,413,829
223,140
101,080
102,000
99,910
1
2
6
8
9
23.36%
2.16%
0.98%
0.99%
0.97%
Taxable
Assessed
Value
City of Abbeville
Schedule 9 - Property Tax Levies and Collections
Collected within the
Fiscal Year of the Levy
Fiscal Year
Tax Year
Total Tax
Levy
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
$ 806,615
760,730
712,114
736,737
833,065
792,351
571,144
529,109
574,946
553,865
Amount
$ 775,331
731,307
688,175
720,257
815,008
774,009
555,199
514,288
554,419
530,417
Percentage
of
Levy
96.1%
96.1%
96.6%
97.8%
97.8%
97.7%
97.2%
97.2%
96.4%
95.8%
Source: City of Abbeville property tax system
65
Total Collections to Date
Collections in
Subsequent
Years
$ 27,351
21,806
19,243
15,196
18,067
18,697
11,361
3,273
7,414
16,412
Amount
$
802,682
753,113
707,418
735,453
833,075
792,706
566,560
517,561
561,833
546,829
Percentage
of
Levy
99.5%
99.0%
99.3%
99.8%
100.0%
100.0%
99.2%
97.8%
97.7%
98.7%
City of Abbeville
Schedule 10 - Electric, Water and Sewer Rates
2005
Electric Rates
Minimum Rates
Residential
Residential Total Electric
Commercial
$
Kilowatts Per Hour
(For KWH for the first 1000 per month)
Residential
Commercial (1)
(For KWH over 1000 per month)
Residential
Commercial (1)
Water Rates
Minimum Rates (Based on Meter Size) (2)
3/4"
1"
1 1/2"
2"
3"
4"
$
Per Thousand Gallons
Inside City Rate
Outside City Rate
Sewer Rates
Minimum Rates (Based on Meter Size) (2)
3/4"
1"
1 1/2"
2"
3"
4"
2006
10.68 $
10.68
12.04
Per Thousand Gallons
Inside City Rate
Outside City Rate
11.11 $
11.11
12.52
2008
11.30 $
11.30
12.74
2009
11.71 $
11.71
13.20
2010
12.19 $
12.19
13.74
2011
12.76 $
12.76
14.09
2012
13.42 $
13.42
15.14
2013
13.42 $
13.42
15.14
2014
13.42 $
13.42
15.14
13.42
13.42
15.14
0.0907
0.0907
0.1083
0.0907
0.0907
0.1083
0.0960
0.0960
0.1145
0.0995
0.0995
0.1186
0.1036
0.1036
0.1235
0.1085
0.1085
0.1293
0.1141
0.1141
0.1360
0.1141
0.1141
0.1360
0.1141
0.1141
0.1360
0.1141
0.1141
0.1360
0.0852
0.0739
0.1245
0.0852
0.0739
0.1245
0.0901
0.0783
0.1318
0.9330
0.0811
0.1365
0.0971
0.0844
0.1421
0.1017
0.0884
0.1488
0.1070
0.0930
0.1565
0.1070
0.0930
0.1565
0.1070
0.0930
0.1565
0.1070
0.0930
0.1565
7.25 $
8.34
10.17
12.38
18.24
24.82
1.81
3.26
$
2007
5.25 $
5.92
9.53
13.87
25.43
38.43
2.35
4.13
7.25 $
8.34
10.17
12.38
18.24
24.82
1.81
3.26
5.25 $
5.92
9.53
13.87
25.43
38.43
2.35
4.13
9.25 $
10.34
12.07
14.38
20.24
26.82
10.25 $
11.34
13.17
15.38
21.24
27.82
12.25 $
13.34
15.17
17.38
23.24
29.82
12.25 $
20.81
37.22
66.83
121.24
175.35
12.25 $
33.13
66.25
106.00
212.00
331.24
13.23 $
33.08
66.15
105.84
211.68
330.75
13.23 $
33.08
66.15
105.84
211.68
330.75
2.21
3.91
2.36
4.21
2.41
4.34
2.41
4.34
2.60
4.68
2.73
4.91
10.25 $
10.92
14.53
18.87
30.43
43.43
11.25 $
28.13
56.25
90.00
180.00
281.25
12.25 $
30.63
61.25
98.00
196.00
306.25
13.23 $
33.08
66.15
105.84
211.68
330.75
13.23 $
33.08
66.15
105.84
211.68
330.75
3.00
4.88
3.10
5.58
3.10
5.58
3.35
6.03
3.52
6.33
2.01
3.56
7.25 $
7.92
11.53
15.87
27.43
40.43
8.25 $
8.92
12.53
16.87
28.43
41.43
2.55
4.33
2.75
4.68
(1) Commercial rates are incremented for the first 500 KWH used per month and then the next 700 KWH used per month.
(2) Minimum rates for water and sewer are for inside rates only. Outside rates are slightly higher to compensate for costs of distribution.
Source: City of Abbeville Public Utilities system records
66
13.23
33.08
66.15
105.84
211.68
330.75
2.73
4.91
13.23
33.08
66.15
105.84
211.68
330.75
3.52
6.33
City of Abbeville
Schedule 11 - Number of Customers by Utility Type
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Electric
Residential
Industrial
Commercial
Public Authority
3,076
0
501
24
3,064
0
498
24
3,052
0
505
24
3,061
0
503
24
3,020
0
502
24
3,003
0
507
28
2,976
0
503
29
3,004
0
502
28
2,973
0
490
29
3,957
0
490
29
Water
Residential
Industrial
Commercial
Public Authority
2,389
0
377
51
2,374
0
383
51
2,357
0
391
51
2,354
0
391
51
2,326
0
399
51
2,323
0
406
51
2,314
0
399
51
2,322
0
388
51
2,310
0
385
51
2,293
0
389
51
Sewer
Residential
Industrial
Commercial
Public Authority
2,126
0
322
32
2,111
0
325
32
2,097
0
325
32
2,113
0
321
32
2,061
0
318
32
2,058
0
323
32
2,050
0
315
32
2,058
0
304
32
2,054
0
303
32
2,029
0
308
32
(1) The City of Abbeville Public Utilities includes its industrial customers in the commercial category.
67
City of Abbeville
Schedule 12 - Utilities Sold by Type of Customer
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
33,092,573
24,864,497
4,961,180
33,105,817
22,637,152
4,996,610
33,494,476
23,127,756
4,532,838
32,924,970
22,570,239
4,532,558
33,054,122
21,686,385
4,628,578
35,472,161
23,180,981
4,376,974
34,698,502
22,884,650
4,584,099
31,266,538
21,993,564
4,438,297
31,065,519
22,080,067
4,149,196
33,581,196
23,988,870
4,241,757
Water
(Millions of Gallons)
Residential
Commercial
Public Authority
130.5
655.0
1.3
141.2
627.4
2.4
136.2
586.5
3.8
144.4
492.8
3.7
120.1
466.2
2.8
118.3
455.3
3.5
120.5
499.5
2.4
111.9
491.7
2.6
103.7
483.2
1.4
109.0
438.4
1.8
Sewer
(Millions of Gallons Treated)
Residential
Commercial
Public Authority
114.4
88.9
1.0
120.8
87.5
1.4
111.1
84.6
2.1
120.9
86.5
1.7
102.2
78.0
1.3
98.4
81.4
1.0
97.9
89.2
0.8
94.9
80.8
0.7
92.9
60.1
0.4
92.3
64.5
0.6
Electric
(Kilowatt-Hours)
Residential
Commercial
Public Authority
(1) The City of Abbeville Public Utilities includes its industrial customers in the commercial category.
68
City of Abbeville
Schedule 13 - Electricity Produced/Purchased and Consumed
Fiscal
Year
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Millions of
KilowattHours
Produced
68,294
67,748
68,157
66,724
66,041
70,501
68,693
64,011
63,914
67,677
Millions of
KilowattHours
Billed
62,918
60,740
61,155
60,028
59,369
63,030
62,167
57,698
57,295
61,812
Millions of
KilowattHours
Unbilled
5,376
7,008
7,002
6,696
6,672
7,471
6,526
6,313
6,619
5,865
Average
Percent of
kWh
Unbilled
7.87% $
10.34%
10.27%
10.04%
10.10%
10.60%
9.50%
9.86%
10.36%
8.67%
69
Average
Cost per
kWh
0.0535
0.0591
0.0611
0.0650
0.0647
0.0648
0.0714
0.0793
0.0838
0.0829
Average
Charge per
kWh
$
0.0901
0.0949
0.0996
0.1026
0.1065
0.1074
0.1163
0.1199
0.1198
0.1323
City of Abbeville
Schedule 14 - Water Produced and Consumed and Wastewater Treated
Fiscal
Year
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Millions of
Gallons of
Water
Produced
1028
1018
943
814
748
778
829
739
682
647
Millions of
Gallons of
Water
Billed
938
953
727
641
589
577
622
606
588
549
Millions of
Gallons of
Water
Unbilled
90
65
216
173
159
201
207
133
94
98
Average
Percent of
Water
Unbilled
8.75%
6.39%
22.91%
21.25%
21.26%
25.84%
24.97%
18.00%
13.78%
15.15%
(1) Rate is shown for 3/4" meters.
(2) Per 1,000 gallons.
70
Total Direct Rate
Water
Base
Usage
Rate (1)
Rate (2)
Millions of
Gallons of
Wastewater
Treated
261
270
210
213
231
249
227
217
154
212
$
7.25 $
7.25
9.25
10.25
12.25
12.25
12.25
13.23
13.23
13.23
1.81 $
1.81
2.01
2.21
2.36
2.41
2.41
2.60
2.73
2.73
Sewer
Usage
Rate (2)
2.35
2.35
2.55
2.75
3.00
3.10
3.10
3.35
3.52
3.52
City of Abbeville
Schedule 15 - Principal Electric Users in Service Area
Current and Nine Years Ago
2014
Customer
Abbeville Area Medical Center
Abbeville County School District 60
Ingle's Markets
Bi-Lo Markets
Abbeville County
7 Eleven
Greenwood Petroleum, Inc.
CVS Pharmacy
Davita, Inc. #4397
Type of Business
Medical Services
Education
Grocery Store
Grocery Store
Government
Medical Services
Convenience Stores
Convenience Stores
Pharmacy
Medical Services
Rank
479,648
297,962
239,463
200,552
79,336
73,694
43,749
42,598
33,644
22,891
5.87%
3.64%
2.93%
2.45%
0.97%
0.90%
0.54%
0.52%
0.41%
0.28%
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
$ 1,513,537
18.51%
Billed
Revenues
Rank
1
2
3
4
5
6
7
8
9
10
2005
Percentage of
Total Billed
Revenues
$
(1) 2005 records unavailable
71
Billed
Revenues
$
-
Percentage of
Total Billed
Revenues
0.00%
City of Abbeville
Schedule 16 - Principal Water Users in Service Area
Current Year and Nine Years Ago
2014
Customer
Sage Automotive - Abbeville Plant
Town of Calhoun Falls
Prysmian Cable & Systems
Flexible Technologies
Abbeville Housing Authority
Hickory Heights Investors, LLC
Burnstein Von Seelen Precision Castings
Precision Metal Finishing
Type of Business
Manufacturing
Municipality
Manufacturing
Education
Manufacturing
Apartment Complex
Apartment Complex
Manufacturing
Medical Services
Manufacturing
Billed
Revenues
Rank
1
2
3
4
5
6
7
8
9
10
2005
Percentage of
Total Billed
Revenues
$
362,921
347,429
94,825
41,371
21,903
21,871
17,236
15,741
15,652
15,098
18.44%
17.66%
4.82%
2.10%
1.11%
1.11%
0.88%
0.80%
0.80%
0.77%
$
954,047
48.49%
72
Percentage of
Total Billed
Revenues
Billed
Revenues
Rank
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
$
-
0.00%
City of Abbeville
Schedule 17 - Principal Sewer Users in Service Area
2014
Customer
Prysmian Cable & Systems
Abbeville Housing Authority
Flexible Technologies
Hickory Heights Investors, LLC
Precision Metal Finishing
Abbeville County Law Enforcement Center
Burnstein Von Seelen Precision Castings
Professional Towel
Type of Business
Manufacturing
Education
Apartment Complex
Manufacturing
Apartment Complex
Manufacturing
Medical
Government
Manufacturing
Manufacturing
Billed
Revenues
Rank
1
2
3
4
5
6
7
8
9
10
2005
Percentage of
Total Billed
Revenues
$
95,825
33,756
26,241
24,244
20,898
18,311
14,882
13,870
11,377
8,454
8.37%
2.95%
2.29%
2.12%
1.82%
1.60%
1.30%
1.21%
0.99%
0.74%
$
267,858
23.39%
73
Percentage of
Total Billed
Revenues
Billed
Revenues
Rank
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
$
-
0.00%
City of Abbeville
Schedule 18 - Ratios of Outstanding Debt by Type
Fiscal
Year
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
General
Obligation
Bonds
$
-
400,000
366,389
331,497
-
Notes
Payable
$
-
400,986
363,548
369,935
319,724
267,370
377,866
311,314
248,242
Capital
Leases
$
364,958
261,708
218,682
356,511
335,640
220,049
114,855
55,471
371,645
470,843
Total
Primary
Government
Revenue
Bonds
$
-
307,000
267,000
Revenue
Bonds
Population
Per
Capita
Percentage
of Personal
Income (1)
Capital
Leases
$ 7,372,808
7,298,853
7,029,145
6,210,686
6,073,114
7,590,721
7,393,559
10,445,133
10,372,503
9,768,185
$
213,650
150,721
109,534
56,988
200,121
163,151
488,071
715,902
500,933
346,678
$
7,951,416
7,711,282
7,758,347
6,987,733
6,978,810
8,693,645
8,630,244
11,925,869
11,863,395
11,100,948
(1) Personal Income Data is not available for fiscal years 2012 - 2014.
Source: City of Abbeville Finance Department and South Carolina Budget and Control Board Research and Statistical Research Division
74
6,075
6,075
6,075
5,840
5,840
5,237
5,183
5,185
5,179
5,179
1,309
1,269
1,277
1,197
1,195
1,660
1,665
2,300
2,291
2,143
1.37%
1.29%
1.24%
1.10%
1.06%
1.32%
1.27%
N/A
N/A
N/A
City of Abbeville
Schedule 19 - Ratios of General Bonded Debt Outstanding
Fiscal
Year
Population
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
6,075
6,075
6,075
5,840
5,840
5,237
5,183
5,185
5,179
5,179
Assessed
Value
$
10,331,326 $
9,906,986
9,287,272
11,421,267
11,417,698
11,152,537
9,032,616
9,042,467
9,276,731
9,694,609
General
Obligation
Debt
400,000
366,389
331,497
-
Less: Amounts
Available in Debt
Service Fund
$
40,957
41,092
-
(1) Details regarding the City's outstanding debt can be found in the notes to the financial statements.
(2) See the Schedule of Assessed Value and Estimated Actual Value of Taxable Property for
property value data.
(3) Population data can be found in the Schedule of Demographic and Economic Statistics.
75
Net
GO
Debt
$
400,000
325,432
290,405
-
Percentage of
Net Bonded Debt
to Assessed
Value
0.00%
0.00%
0.00%
0.00%
0.00%
3.59%
4.06%
3.67%
0.00%
0.00%
Per
Capita
0.00%
0.00%
0.00%
0.00%
0.00%
1.31%
1.59%
1.79%
0.00%
0.00%
City of Abbeville
Schedule 20 - Direct and Overlapping Governmental Activities Debt
As of October 31, 2014
.
Governmental Unit
County:
Abbeville County
General obligation bonds
Other bonds or debt
School District:
Abbeville County School District
Debt
Outstanding
$
Estimated
Share of
Overlapping
Debt
Estimated
Percentage
Applicable
442,000
5,059,650
5,501,650
17.5%
5,925,000
5,925,000
17.5%
$
1,036,875
Subtotal, overlapping debt
City of Abbeville
General obligation bond
Hospitality fee bond
Notes payable
Capital leases
962,789
1,999,664
100.0%
100.0%
100.0%
100.0%
Total direct and overlapping debt
267,000
248,242
470,843
986,085
$
Sources: Assessed value data used to estimate applicable percentages provided by the County Board of Equalization
and Assessment. Debt outstanding provided by the county and school district.
Note: Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the city.
This schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the
residents and business of the City of Abbeville. This process recognizes that, when considering the government's
ability to issue and repay long-term debt, the entire debt burden borne by the residents and businesses should be
taken into account. However, this does not imply that every taxpayer is a resident, and therefore responsible for
repaying the debt, of each overlapping government.
The percentage of overlapping debt applicable is estimated using taxable assessed property values. Applicable
percentages were estimated by determining the portion of the city's taxable assessed value that is within the
government's boundaries and dividing it by the governmental unit's total taxable assessed value.
76
2,985,749
City of Abbeville
Schedule 21 - Legal Debt Margin Information
2005
Debt limit
$
Total net debt applicable to limit
Legal debt margin
2006
903,239 $
-
$
903,239 $
2007
867,172 $
867,172 $
2008
2009
2010
2011
816,676 $
907,192 $
986,943 $
965,660 $
798,576 $
400,986
363,548
369,935
719,724
633,759
415,690 $
543,644 $
617,008 $
245,936 $
164,817 $
Total net debt applicable to the limit
as a percentage of debt limit
Legal Debt Margin Calculation for Fiscal Year 2013
Assessed Value
Add back: exempt real property
Total assessed value
$ 9,694,609
949,708
$ 10,644,317
Debt limit (8% of total assessed value)
Debt applicable to limit:
Other notes payable
Less: Amount set aside for repayment of
general obligation debt
Total net debt applicable to limit
$
$
851,545
248,242
248,242
Legal debt margin
$
Source: Abbeville County Assessor and City of Abbeville Finance Department
77
603,303
2012
2013
796,060 $
796,060 $
2014
815,422 $
851,783
311,314
248,242
504,108 $
603,541
City of Abbeville
Schedule 22 - Revenue Bond Coverage - Combined Utility System Bonds
Fiscal
Year
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Gross
Revenue
$
7,807,332
7,804,178
8,243,389
8,299,659
8,688,305
9,910,099
10,401,755
9,848,417
10,351,984
11,380,069
(2)
Less:
Operating
Expenses
$ 6,773,970
6,961,067
6,727,798
7,480,955
7,447,976
7,646,657
8,344,119
8,612,165
8,500,910
8,959,697
Net Revenue
Available
for Debt Service
$
1,033,362
843,111
1,515,591
818,704
1,240,329
2,263,442
2,057,636
1,236,252
1,851,074
2,420,372
Principal
$ 253,700
351,585
374,708
481,692
502,572
485,072
592,073
448,426
(3)
547,632
604,318
Debt Service Requirements
Interest
Total
$ 380,386
372,020
349,448
340,920
251,231
245,224
272,796
259,094
304,777
235,485
(1) Details regarding the government's outstanding debt can be found in the notes to the financial statements.
(2) Total operating expenses exclusive of depreciation.
(3) Debt service principal for 2013 excludes refunding of the Series 2008 bond in the amount of $4,590,000
78
$ 634,086
723,605
724,156
822,612
753,803
730,296
864,869
707,520
852,409
839,803
Coverage
1.63
1.17
2.09
1.00
1.65
3.10
2.38
1.75
2.17
2.88
City of Abbeville
Schedule 23 - Demographic and Economic Statistics
(1)
(1)
(3)
(2)
Graduating
Seniors
Total
Personal Income
(in Thousands)
City of Abbeville
Fiscal
Year
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Population
6,075
6,075
6,075
5,840
5,840
5,237
5,183
5,185
5,179
5,179
Median
Age
38.0
38.0
38.0
38.0
38.0
40.0
41.6
41.6
40.4
41.6
119
120
146
111
118
102
102
104
123
113
$
578,341
599,959
625,507
633,576
659,544
659,544
677,681
718,987
738,534
747,768
(2)
(4)
Abbeville County
Per Capita
Personal Income
$
22,274
23,396
24,588
25,025
26,135
26,135
27,511
28,564
29,422
29,902
Unemployment
Rate
8.30%
9.20%
7.40%
8.80%
15.20%
13.50%
11.90%
10.70%
9.39%
6.80%
(1) Source: US Bureau of Census
(2) Source: South Carolina Budget and Control Board Research and Statistical Research Division
(3) Source: Abbeville County School District
(4) Source: SC Employment Security Commission - includes rates for Abbeville County.
Estimates for personal income are developed between census years by the South Carolina Budget and Control Board Research and Statistical Research Division.
* Median Age, Total Personal Income and Per Capita Personal Income Information is not currently available for 2012.
79
City of Abbeville
Schedule 24 - Principal Employers
2014
Employer
Employees
Abbeville County
Sage Automotive Interiors
City of Abbeville
Abbeville High School
Bi-Lo
Long Cane Elementary School
Wright Middle School
569
355
160
143
120
99
80
68
61
50
Flexible Technologies (1)
Prysmian Cable (1)
Burnstein Von Seelen Precision Castings (1)
Carolina Fabrication (1)
West Carolina Telephone (1)
Little River Electric Membership Cooperative (1)
298
333
216
30
56
29
Totals
2,667
2005 (2)
Percentage
Of Total
City
Employment
Rank
1
2
3
4
5
6
7
8
9
10
33.4%
20.8%
9.4%
8.4%
7.0%
5.8%
4.7%
4.0%
3.6%
2.9%
Employees
Rank
Percentage
of Total
City
Employment
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
100.0%
-
(1) These industries are located within one to two miles of the city limits of the City of Abbeville. Many city residents are
employed by these industries.
(2) Information for 2005 unavailable.
80
0%
City of Abbeville
Schedule 25 - Full-time Equivalent City Government Employees by Function
Function
General government
Municipal Court
Public safety
Police
Officers
Civilians
Fire
Firefighters and officers
Civilians
Public Works
Administration
Streets
Maintenance
Sanitation
Animal Control
Recreation
Utilities Admin.
Electric
Water
Sewer
Total
2005
2006
2007
2008
2009
2010
2011
2012
2013
21
21
19
21
21
17
19
2
20
2
22
2
19
2
21
3
21
3
21
2
20
1
19
1
18
1
18
2
4
1
4
1
4
1
4
1
4
1
4
1
4
1
4
1
4
1
4
1
3
9
2
6
2
7
2
5
2
9
2
5
2
9
2
5
2
9
2
5
2
9
2
5
5
8
9
6
5
5
8
9
7
4
4
10
9
7
4
4
11
8
8
4
4
9
9
8
4
4
8
9
8
4
2
9
2
5
1
5
9
11
8
4
2
8
2
5
1
5
8
11
8
5
2
7
1
5
1
7
7
8
8
5
2
7
1
5
1
4
8
10
7
5
101
99
97
103
102
96
103
Source: City of Abbeville Human Resource Department
81
17
3
2014
100
19
3
97
18
3
96
City of Abbeville
Schedule 26 - Numer of Employees by Identifiable Activty - Business-type Activities
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Electric
Hydro Plant Operations
Electric Distribution
3
6
3
6
2
7
3
5
3
6
3
6
3
8
3
8
3
8
3
7
Water
Water Plant Operations
Water Distribution
4
2
5
2
5
2
5
3
5
3
5
3
5
3
5
3
5
3
5
2
Sewer
Sewer Plant Operations
Sewer Distribution
2
3
2
2
2
2
2
2
2
2
2
2
2
2
2
3
2
3
2
3
Administration
Billing/Customer Service
Meter Reading
Custodian
Finance and Accounting *
Executive Assistant
Utilities Director
3
2
1
2
1
1
3
2
1
2
1
1
3
2
1
2
1
1
4
2
1
2
1
1
3
2
2
1
1
2
2
2
1
1
4
2
2
1
1
4
2
2
1
1
4
1
1
2
1
1
3
1
1
2
1
1
30
30
30
31
30
29
33
34
34
31
Total
Source: City of Abbeville Human Resource Department
* These employees are counted in general government on the Full-time Equivalent City Government Employees by Function as they
perform duties for both the general fund and the enterprise fund.
82
City of Abbeville
Schedule 27 - Operating Indicators by Function
2005
Function
Police
Criminal arrests
Incident Reports
Calls For Service
Traffic violations
Fire
Number of calls answered
Inspections
Sanitation
Refuse collected (tons/year)
Recreation
Civic Center Events
Civic Center Admissions
Sports Registrations
Electric
Service connections
Number of substations
Miles of distribution lines
Water
Service connections
Miles of distribution lines
Average daily consumption
(millions of gallons)
Max daily capacity of plant (mgd)
Water tanks maintained
2006
2007
2008
2009
2010
2011
2012
2013
2014
475
1,048
7,642
1,429
390
1,131
8,388
1,568
612
1,160
9,528
1,767
691
1,069
11,364
2,105
793
971
11,944
1,970
529
1,055
9,295
1,708
480
1,274
10,372
1,804
600
1,005
10,107
1,538
232
1,278
9,328
1,052
580
1,679
11,134
1,800
222
434
239
446
184
498
153
519
209
493
195
696
198
550
184
502
221
90
333
192
4,135
4,640
5,500
4,758
6,389
4,868
5,009
4,971
2,262
4,690
400
30,000
871
350
30,000
1,000
350
34,043
922
350
34,000
834
451
30,000
773
400
30,000
780
400
30,000
782
400
30,000
685
400
30,000
689
418
31,000
727
3,604
7
173
3,569
7
173
3,574
7
174
3,565
7
174
3,522
7
174
3,538
7
174
3,498
7
174
3,506
7
174
3,492
7
175
3,448
7
175
2,801
82
2,753
82
2,748
82
2,744
82
2,725
82
2,780
82
2,721
82
2,710
82
2,746
82
2,682
82
2
9
4
3
9
4
2
9
4
2
9
4
2
9
4
2
9
4
2
9
4
2
9
4
2,076
9
4
1,778
9
4
Continued
83
City of Abbeville
Schedule 27 - Operating Indicators by Function, continued
2005
Wastewater
Service connections
Miles of sanitary lines
Number of treatment plants
Daily average treatment (mgd)
2006
2007
2008
2009
2010
2011
2012
2013
2014
Max daily capacity of plant (mgd)
2,480
53
1
0.65
1.7
2,431
53
1
0.637
1.7
2,454
53
1
0.576
1.7
2,434
53
1
0.582
1.7
2,379
53
1
0.628
1.7
2,380
53
1
0.684
1.7
2,365
53
1
0.623
1.7
2,363
53
1
0.594
1.7
2,357
54
1
0.636
1.7
2,337
54
1
0.583
1.7
Average daily sewage treatment
(millions of gallons)
0.65
0.637
0.576
0.582
0.628
0.684
0.623
0.594
0.636
0.583
Sources: Various City departments.
Note: Indicators are not available for the general government function.
84
City of Abbeville
Schedule 28 - Capital Asset Statistics by Function
2005
Function
Public Safety
Police:
Stations
Patrol Units
Fire Stations
Sanitation
Collection trucks
Highways and streets
Number of Streets
Streetlights
Traffic signals
Parks
Swimming pools
Tennis courts
Community centers
Water
Water mains (miles)
Fire hydrants
Maximum daily capacity
(thousands of gallons)
Sewer
Sanitary sewers (miles)
Number of Storm Sewers
Maximum daily treatment capacity
(thousands of gallons)
Electric
Number of distribution stations
Miles of service lines
2006
2007
2008
2009
2010
2011
2012
2013
2014
2
13
1
2
11
1
2
12
1
2
22
1
2
22
1
2
22
1
1
19
1
1
18
1
1
22
1
1
24
1
3
3
3
3
3
4
4
4
3
3
82
955
82
955
82
968
82
983
82
908
82
924
113
945
113
989
114
989
114
989
2
4
1
1
1
4
1
1
1
4
1
1
1
4
1
1
1
4
0
1
1
4
0
1
1
4
0
1
1
5
0
1
1
5
0
1
1
5
0
1
1
82
350
9
82
350
9
82
359
9
82
357
9
82
356
9
82
354
9
82
354
9
82
354
9
82
355
9
82
372
9
53
41
1.7
53
41
1.7
54
41
1.7
54
41
1.7
54
41
1.7
54
41
1.7
54
42
1.7
54
42
1.7
55
42
1.7
55
42
1.7
7
173
7
173
7
174
7
174
7
174
7
174
7
174
7
174
7
175
7
175
Sources: Various City departments
Note: No capital asset indicators are available for the general government function.
85
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
Honorable Mayor and Members of City Council
City of Abbeville
Abbeville, 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 businesstype activities, each major fund, and the aggregate remaining fund information of the City of Abbeville, South
Carolina (the “City”), as of and for the year ended October 31, 2014, and the related notes to the financial
statements, which collectively comprise the City’s basic financial statements, and have issued our report
thereon dated April 14, 2015.
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) to determine the 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 may exist that have not
been identified.
86
www.elliottdavis.com
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 determination of
financial statement amounts. 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.
Greenwood, South Carolina
April 14, 2015
87
City of Abbeville
Schedule of Findings and Responses
None reported.
88

CAFR Fiscal Year 2013-2014

Transcription

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