2012_cafr - City of Charleston

Transcription

CITY OF CHARLESTON,
SOUTH CAROLINA
COMPREHENSIVE ANNUAL
FINANCIAL REPORT
FOR THE YEAR ENDED DECEMBER 31, 2012
WITH
REPORT OF INDEPENDENT AUDITORS
PREPARED BY:
DEPARTMENT OF BUDGET, FINANCE &
REVENUE COLLECTIONS
Stephen A. Bedard, Chief Financial Officer
CITY OF CHARLESTON, SOUTH CAROLINA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
TABLE OF CONTENTS
YEAR ENDED DECEMBER 31, 2012
INTRODUCTORY SECTION
Letter of Transmittal
Certificate of Achievement for Excellence in Financial Reporting
Principal Officials
Organizational Chart
FINANCIAL SECTION
Independent Auditors’ Report
Page(s)
iv - xi
xii
xiii
xiv
1-2
Management’s Discussion and Analysis (Required Supplementary
Information - Unaudited)
3 - 15
Basic Financial Statements
Exhibit
Government-wide Financial Statements
1. Statement of Net Position
2. Statement of Activities
16 - 17
18 - 19
Fund Financial Statements
3. Balance Sheet - Governmental Funds
4. Reconciliation of the Balance Sheet - Governmental Funds to the Government-wide
Statement of Net Position
5. Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds
6. Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund
Balances - Governmental Funds to the Government-wide Statement of Activities
7. Statement of Revenues, Expenditures and Changes in Fund Balance Budget and Actual - General Fund
8. Statement of Net Position - Proprietary Funds
9. Statement of Revenues, Expenses and Changes in Fund Net Position Proprietary Funds
10. Statement of Cash Flows - Proprietary Funds
11. Statement of Fiduciary Net Position - Fiduciary Fund
Notes to Financial Statements
Index
Notes
20 - 21
22
23
24 - 25
26 - 28
29 - 30
31
32 - 33
34
35
36 - 73
Required Supplementary Information
Schedule of Funding Progress and Employer Contributions Other Postemployment Benefits - Defined Benefit Health Care Plan
Other Supplementary Information
Combining and Individual Fund Financial Statements and Schedules
A. Schedule of Expenditures - Budget to Actual - General Fund
i
74
75 - 87
TABLE OF CONTENTS
FINANCIAL SECTION (CONTINUED)
Exhibit
Nonmajor Governmental Funds
B. Combining Balance Sheet - Nonmajor Governmental Funds
C. Combining Statement of Revenues, Expenditures and Changes in
Fund Balances - Nonmajor Governmental Funds
Budgetary Comparison Schedule
C-1. Schedule of Revenues, Expenditures and Changes in Fund
Balance - Budget and Actual - Municipal Accommodations Fee Fund
Nonmajor Proprietary Funds
D. Combining Statement of Net Position - Nonmajor Proprietary Funds
E. Combining Statement of Revenues, Expenses and Changes in
Net Position - Nonmajor Proprietary Funds
F. Combining Statement of Cash Flows - Nonmajor Proprietary Funds
Agency Fund
G. Statement of Changes in Assets and Liabilities - Agency Fund
Other Financial Information
H. Schedule of Court Fines, Assessments and Surcharges
STATISTICAL SECTION - UNAUDITED
Statistical Section
Table
Financial Trends
1. Net Position by Component
2. Changes in Net Position
3. Fund Balances of Governmental Funds
4. Changes in Fund Balances of Governmental Funds
88 - 89
90 - 91
92 - 93
94
95
96
97
98
99
100
101
102
103
104 - 105
106
107
5.
6.
7.
8.
9.
10.
Revenue Capacity
Governmental Activities Tax Revenues by Source
General Governmental Tax Revenues by Source
Assessed Value and Estimated Actual Value of Taxable Property
Property Tax Rates - Direct and Overlapping Governments
Principal Property Taxpayers
Property Tax Levies and Collections
108
109
110
111
112
113
11.
12.
13.
14.
15.
16.
Debt Capacity
Stormwater System Continuing Disclosure
Ratios of Outstanding Debt by Type
Ratios of General Bonded Debt Outstanding
Direct and Overlapping Governmental Activities Debt
Legal Debt Margin Information
Pledged Revenue Coverage
114
115
116
117
118
119
Demographic and Economic Information
17. Demographic and Economic Statistics
18. Principal Employers - Metro Area
120
121
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TABLE OF CONTENTS
STATISTICAL SECTION - UNAUDITED (CONTINUED)
Table
Operating Information
19. Full-Time Equivalent City Government Employees by Function
20. Operating Indicators by Function
21. Capital Asset Statistics by Function
122
123
124
Bond Information
Schedule of Bonds and Certificates of Participation (COP) Principal and Interest Requirements to
Maturity:
22. Business-type Activities
125
23. Governmental Activities
126
24. Government-wide
127
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INTRODUCTORY SECTION
JOSEPH P. RILEY, JR.
Mayor
City of Charleston
South Carolina
STEPHEN A. BEDARD
Chief Financial Officer
Department of Budget, Finance
and Revenue Collections
June 28, 2013
To the Honorable Mayor Joseph P. Riley, Jr.,
Members of City Council, and
Citizens of the City of Charleston:
We are pleased to submit this Comprehensive Annual Financial Report for the City of Charleston’s
fiscal year ended December 31, 2012. South Carolina law requires every municipality to issue an annual
report on its financial position and activities, and the report is to be audited by an independent firm of
certified public accountants. This report is published to fulfill that requirement.
Management assumes full responsibility for the completeness and reliability of the information
contained in this report, based on a comprehensive framework of internal control that has been
established for this purpose. Because the cost of internal control should not exceed anticipated
benefits, the objective is to provide reasonable, rather than absolute, assurance the financial statements
are free of any material misstatements.
Elliott Davis, LLC, Certified Public Accountants, has issued an unqualified (“clean”) opinion on the
City of Charleston’s financial statements for the year ended December 31, 2012. The independent
auditors’ report is located at the front of the financial section of this report.
Management’s Discussion and Analysis (MD&A) immediately follows the independent auditors’
report and provides a narrative introduction, overview, and analysis of the basic financial statements.
This letter of transmittal is designed to complement the MD&A and should be read in conjunction with
it.
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GOVERNMENT PROFILE
The City of Charleston is located on the southeastern coast of South Carolina and is the principal
seaport for the state. First established in 1670, the settlement was moved to the peninsula formed by
the convergence of the Ashley and Cooper Rivers in 1680. The City had a land area of only 6.12 square
miles and did not extend its corporate limits until 1960, when a large area west of the Ashley River was
annexed. In 1991, Daniel Island was annexed, adding 10 square miles. Currently, the City occupies over
100 square miles spread over Charleston and Berkeley Counties and has 8 square miles of vital, bustling
downtown, which is home to the City’s central business district. Charleston is the second largest city in
South Carolina. According to the 2010 Census, the population is 120,083 persons. As a result of both
growth within the City and annexations, there has been a 24.2% increase in the population of the City
since the 2000 Census.
The Mayor is the Chief Executive Officer of the City of Charleston, which operates under a strong
mayor form of government. The Mayor is also the presiding officer of City Council, which consists of
twelve council members who are elected for staggered four-year terms from single-member districts.
The Mayor has no veto power, but casts a vote similar to those cast by each member of the Council.
Regular meetings open to the public are held twice a month during the year, except for the months of
June, July and August in which only one meeting is held each month. The Chief Financial Officer (CFO)
supervises all financial matters for the City.
The City of Charleston is financially accountable for the City of Charleston Public Facilities Corporation,
which, although a legally separate entity, is included in the financial data of the City as a blended
component unit. Additional information on this and other related entities can be found in the notes to the
financial statements (see Notes I.A. and V.D.) The following entities are related to the City of Charleston,
but do not meet the requirements for inclusion in this report: Charleston Water Systems (legally named
Commissioners of Public Works), Charleston Housing Authority, Charleston Citywide Local Development
Corporation, Charleston Museum, Gibbes Museum of Art, and Charleston Area Regional Transportation
Authority (CARTA).
City Council must approve the budget by December 31 of the previous year. The Budget &
Management Division, with input from the various City departments, prepares the budget, which is then
presented to the Mayor and City Council for approval. Activities of the General Fund and enterprise
funds are included in the annual budget, but enterprise funds adopt formal budgets for management
control purposes only. A balanced budget is required. Budgetary controls are maintained to ensure
compliance with legal provisions. Current appropriations in all funds are limited to the sum of available,
unencumbered fund balances and revenues estimated to be received in the current budget year. The
City maintains an encumbrance accounting system, a technique of accomplishing budgetary control.
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The City of Charleston provides a broad range of services that include:
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
(10)
(11)
(12)
(13)
Public Safety – law enforcement, fire protection and emergency preparedness
Municipal Court
Traffic and Transportation
Street, Sidewalk and Drainage Maintenance
Waste Disposal
Planning, Zoning and Urban Development
Code Enforcement
Business Support and Development
Parks Development and Maintenance
Recreational Facilities and Program Initiatives
Children, Youth, Family, Senior and Disabled Citizens Programs
Tourism Management
Arts and Cultural Programs and Events
LOCAL ECONOMY
The City began to experience the national economic downturn in 2008. Unemployment in the
Charleston metropolitan area reached a high of 9.5% in 2009, but has since declined to 6.0% as of April
2013, lower than the state average of 8.0%. Charleston County’s April 2013 unemployment rate is lower
than all but 1 of South Carolina’s 46 counties. From 2002 to 2008, unemployment averaged 5.1%. The
region has the 8th largest U.S. seaport in dollar value of cargo handled, one of our nation’s most
impressive medical hubs, a multi-billion dollar tourism industry, an established base of national and
international manufacturers and a large military presence. In 2011, the Milken Institute listed the
Charleston-North Charleston area eleventh on the annual index of “Best-Performing Cities” in the U.S.
market for jobs and economic growth and educational attainment. Forbes magazine consistently ranks
the region as one of the “Best Places for Business and Careers.” In February of 2012, Charleston ranked
fifth in Forbes “Top Mid-Size Cities for Jobs.”
With minor adjustments and selective reductions in spending, the City weathered the economic
downturn successfully. Formulating the 2013 budget required careful consideration in order to operate
within projected revenues. Modest revenues increases are projected in 2013, mainly in the areas of
permits, licenses, and sales taxes. Construction starts have increased over the last year, leading to a
rebound in permit revenues. Business licenses revenues and sales tax revenues have benefitted from
increased consumer spending since 2010. The rising costs of fuel, healthcare and workers compensation
required that only priority items could be funded, and a hiring freeze continues. For 2013, budgeting to
spend $1,083,000 of unassigned fund balance was necessary to balance the budget and also provide for
other priorities: our employees, public safety and infrastructure. Despite the challenges of the
economy, in March 2011 Standard and Poor’s (S&P) confirmed the City’s AAA bond rating, the highest
available for a General Obligation Bond issue. S&P cited the City’s growing and diversified economic
base, moderate debt burden, strong per capita income levels and consistent financial performance as
reasons for the confirmation. In 2010, Moody’s Investors Services upgraded the City’s bond rating to
Aa1 citing the City’s regional importance as a tourist destination, port and medical center, and the City’s
strong financial position. The City of Charleston has received a total of five bond rating increases from
either S&P or Moody’s since 1997.
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In August of 2009, Boeing announced that it would construct a $750 million final assembly
operation for the 787 Dreamliner adjacent to the Charleston International Airport. Plant construction
began in early 2010, operations began in July of 2011, and the first plane was delivered in April 2012.
Boeing recently announced plans to invest another $1.1 billion in its local operations and hire 2,000
more employees over the next 8 years.
The Port of Charleston has seen a steady increase in container volume over the past year, and
South Carolina shipping firms are able to serve over 150 nations with top markets being North Europe
and Asia. The feasibility of deepening Charleston harbor to 50 feet is currently being evaluated. This is a
major first step toward deepening the harbor to accommodate the super-container ships of the 21st
century and further expand the economic impact of the State Ports Authority on the region. A recent
economic impact study estimated the Port’s impact to the Charleston region at more than $7 billion,
with an estimated 50,700 jobs tied directly or indirectly to port activity. The dollar value of goods
handled in the Charleston port district increased 8% from 2011 to 2012, and growth is continuing in
2013. Recently, the Port announced that 2013 fiscal year container volume was 10% ahead of the same
period last year and is the highest in 5 years. April 2013 volume increased over 17% compared to two
years ago. In addition to its cargo activities, the Port of Charleston is also home to a thriving cruise ship
industry, which contributes $37 million annually to the area’s economy, including more than 400 jobs
and a boost to both retail sales and tourism.
The Medical University of South Carolina (MUSC), headquartered in downtown Charleston,
continues to be the City’s key employer with 11,000 employees, including 1,500 faculty members, and
has a $1.7 billion annual impact on the regional economy. MUSC is the state’s primary teaching hospital
and has gained worldwide exposure for its centers of excellence in cardiovascular care, cancer/oncology,
the neurosciences, biotechnology, pediatrics, organ transplantation and psychiatry.
Tourism is a vital part of the economy in Charleston with approximately 4.8 million visitors in 2012.
Charleston has recently received regional, national and worldwide recognition as a top city to visit.
Condé Nast Traveler ranked Charleston the Top Destination in the World and the Top U.S. Travel
Destination in 2012. Visitors to our City contribute an estimated $3.5 billion annually to the area’s
economy resulting in an estimated 56,000 direct and indirect jobs. Admissions Tax collected in the tricounty area amounted to over $6 million in 2012 and lodging sales in the area exceeded $614 million in
2012. Kiawah Island hosted the 2012 PGA Championship in August 2012, bringing unprecedented
international media coverage to the area. Compared to the same period in 2011, hotel room nights sold
increased by 12.3% and the average daily rate increased by 30.9%. The area will host the 2013 Women’s
Amateur Golf Championship in 2013, bringing further recognition to the area as a premier golfing
destination. Various tourism-based revenues such as the Hospitality Fee and the State and Local
Accommodations Taxes provide funding to the City to support tourism-related services and facilities.
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LONG-TERM FINANCIAL PLANNING
The City has long-range financial plans in the areas of capital projects, equipment replacement, cash
management/investments and debt. The City’s rolling Five-Year Capital Improvement Plan (CIP) is
guided by the following policies: the CIP is updated annually and includes anticipated funding sources;
projects funded by debt will be financed over a period not to exceed the useful life of the asset; assets
will be preserved to protect capital investments and minimize future costs; funding of projects will be
appropriately distributed between bonded debt and cash financing; and operating costs resulting from
projects will be identified and included in future budgets.
Equipment replacement policies insure that there is adequate equipment and rolling stock for
employees to effectively, efficiently and safely perform their duties. Some equipment and rolling stock
purchases were deferred during the recession, but funding levels were increased for 2012 and 2013.
RELEVANT FINANCIAL POLICIES
The City’s Mission and Values provide the basic framework for the construction of the annual
budget each year. However, the overriding factor in the budget process has been the economy and its
impact on City revenues, and determining the appropriate and fiscally responsible actions required to
balance a budget in the current economic climate. At the same time, City staff was tasked with
continuing to meet the needs of its citizens and developing a balanced budget with the following
emphasis:




Strengthening our police and fire departments
Continuing priority funding of core municipal services
Maintaining strong funding for City sponsored infrastructure improvements
Continuing our efforts to be an employer of choice
The City’s policy is to maintain an unassigned fund balance in the General Fund at a target of 15%
of the General Fund budgeted expenditures for the following year. This target is considered necessary
given the possibilities of naturally occurring events in this region that could disrupt normal revenue
flows. As of December 31, 2012, the General Fund unassigned fund balance is $21,355,024 or 15% of
the 2013 budgeted General Fund expenditures (as amended).
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MAJOR INITIATIVES
CAPITAL FACILITIES: The City of Charleston continues to improve existing facilities and build new ones
designed to meet the service needs of its citizens. Maintenance projects ranging in cost from $30,000 to
$500,000 are in progress or planned for existing or new facilities located in all parts of the City.
Significant capital improvements include the following:
•
Construction of the $142 million Gaillard Center, which will include a world-class performance
hall, an expanded exhibition center, and new city office space, began in 2012 and is projected
to be completed by the first quarter of 2015. This civic space is funded through a 50/50 split
between private donations and a variety of City revenue sources, including a future bond issue,
hospitality and accommodations tax revenues, and tax incremental financing (TIF) funding.
•
In 1984, the City prepared a Master Drainage Plan which identified stormwater projects in
areas throughout the City. Projects are prioritized based on the cost of property damage
caused by stormwater and other factors. The plan is reviewed and updated continually.
Funding sources include the Stormwater Utility Fee and the Drainage Fund, federal grants,
bonds, and TIF funding. Four major drainage improvement projects have already been
completed: Ardmore, Calhoun East, Byrnes Downs and Church Creek. Projects which are
currently underway or will be underway in the near future include:
U.S. 17/Spring/Fishburne Drainage Improvement Project - $153,280,000
Market Street Drainage Improvement Project Phases 2 & 3 - $26,500,000
Forest Acres Drainage Improvement Project - $11,100,000
Calhoun West Drainage Improvement Project Planning & Preliminary Design $400,000
Wagener Terrace Storm Drain Replacement Project – TBD
Funding already secured for these projects includes a $10,000,000 American Recovery and
Reinvestment Act (ARRA) of 2009 Transportation Investment Generating Economic Recovery
(TIGER) Grant and $88,000,000 from the State Infrastructure Bank (SIB) for the U.S.
17/Spring/Fishburne project. Additionally, revenue bonds of $46,725,000 were issued in June
2012 for funding of drainage projects. Future stormwater utility fee revenues are pledged
towards payment of these bonds.
PUBLIC SAFETY: The City of Charleston continues to work to strengthen the police and fire departments.
In 2010, the Police Department converted to Charleston County’s radio system, which has wider
coverage than the City’s system. This conversion required a $1.5 million capital investment in the
County’s system, which was funded by the City. The City will also pay the County a usage fee based on
the number of radios utilizing the system. In early 2014, the Police Department will join Charleston
County’s consolidated dispatch center, which will result in more efficient and effective deployment of
resources in response to calls for service. The Charleston Fire Department converted to the
consolidated dispatch center in 2011.
ix
In 2013, the Police Department funding was increased to add additional officers to enhance school
security. These 19 additional officers will be assigned to “clusters” surrounding each school within the
City limits, providing rapid and dedicated response to schools in the event of emergencies. Additionally,
4 officers were added to provide additional police presence in the downtown “entertainment” district,
an area of highly concentrated tourism, including hotels and restaurants.
In prior years, the Fire and Police departments were awarded several grants for both personnel and
equipment that required matching funds, and eventually, full absorption of the continuing costs of these
programs. The City is fully aware of the financial responsibility assumed in acceptance of grants, and it
has a fully integrated budgetary plan associated with funding these programs upon expiration of the
grant funding.
AWARDS AND ACKNOWLEDGEMENTS
AWARDS
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 Charleston, SC, for its
comprehensive annual financial report (CAFR) for the fiscal year ended December 31, 2011. This was
the twenty-third consecutive year that the City has achieved this prestigious award. In order to be
awarded a Certificate of Achievement, a government must publish an easily readable and efficiently
organized CAFR that satisfies both generally accepted accounting principles and applicable program
requirements.
A Certificate of Achievement is valid for a period of one year only. However, we believe that our
current CAFR continues to meet the Certificate of Achievement for Excellence in Financial Reporting
Program’s requirements, and we are submitting it to the GFOA to determine its eligibility for another
certificate.
In addition, the City also received the GFOA’s Distinguished Budget Presentation Award for its
annual budget document for the fiscal year beginning January 1, 2012. In order to receive this award, a
governmental unit must publish a document that meets program criteria as a policy document, as an
operations guide, as a financial plan, and as a communications device. This award has been received by
the City for the last thirteen consecutive years. Charleston is in the top tier of municipalities nationwide,
holding both the Budget and Financial Reporting Awards in the same year.
x
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LIST OF PRINCIPAL OFFICIALS
DECEMBER 31, 2012
Elected Officials
Mayor
Councilmember
Councilmember
Councilmember
Councilmember
Councilmember
Councilmember
Councilmember
Councilmember
Councilmember
Councilmember
Councilmember
Councilmember
Joseph P. Riley, Jr.
Gary White, Jr.
Blake Hallman
James Lewis, Jr.
Robert Mitchell
Marvin Wagner
William D. Gregorie
Perry Waring
Mike Seekings
Aubry Alexander
Dean C. Riegel
William Moody, Jr.
Kathleen Wilson
(District 1)
(District 2)
(District 3)
(District 4)
(District 5)
(District 6)
(District 7)
(District 8)
(District 9)
(District 10)
(District 11)
(District 12)
Appointed Officials
Executive Assistant to the Mayor
Executive Assistant to the Mayor
Chief Financial Officer
Chief Information Officer
Clerk of Council/Tourism Director
Corporation Counsel
Deputy Chief Financial Officer
Finance Director
Fire Chief
Housing & Community Development Director
Human Resources and Organizational
Development Director
Internal Auditor
Municipal Court Chief Judge
Parks Director
Planning, Preservation and Sustainability Director
Police Chief
Public Service Director
Recreation Director
Traffic and Transportation Director
xiii
Mary Ann Sullivan
Lawrence Thompson
Stephen Bedard
Wes Ratterree
Vanessa Turner-Maybank
Charlton deSaussure
Robert R. Miracle
Donna Looms Emerson
Karen E. Brack
Geona Johnson
Kay Cross
Amy Wharton
Joseph S. Mendelsohn
Gerald F. Ebeling
Timothy J. Keane
Gregory Mullen
Laura Cabiness
Laurie Yarbrough
Hernan Peña
ORGANIZATIONAL CHART
DECEMBER 31, 2012
Citizens of Charleston
City Council
Council Committees Boards
and Commissions
Mayor
Senior Advisor
Senior Advisor
Corporation Counsel
Business Development
Mayor’s Office for
Children, Youth and
Families
Budget, Finance and
Revenue Collections
Clerk of Council
Fire Department
Housing and Community
Development
Human Resources
Information Technology
Parks
Planning, Preservation
and Sustainability
Police
Public Service
Recreation
Civic Design Center
Internal Audit
Cultural Affairs and
Promotions
Departments
Municipal Judges
Fleet Management
Public Information
xiv
FINANCIAL SECTION
INDEPENDENT AUDITOR’S REPORT
The Honorable Mayor and Members of City Council
City of Charleston
Charleston, 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 Charleston, South Carolina (the "City"),
as of and for the year ended December 31, 2012, 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 risk
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 policies used and the
reasonableness of significant accounting 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.
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 December 31, 2012, and the respective changes in financial position
and, where applicable, cash flows thereof and the respective budgetary comparison for the general fund for the
year then ended in accordance with accounting principles generally accepted in the United States of America.
Elliott Davis LLC | www.elliottdavis.com
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management’s
Discussion and Analysis, and Schedule of Funding Progress and Employer Contributions – Other Postemployment
Benefits – Defined Benefit Health Care Plan on pages 3 through 15 and page 74, respectively, 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 introductory section, combining and individual nonmajor fund
financial statements, budgetary comparison fund financial schedules, schedule of court fines, assessments, and
surcharges, and the statistical section are presented for purposes of additional analysis and are not a required part
of the basic financial statements.
The combining and individual nonmajor fund financial statements, budgetary comparison fund financial schedules,
and schedule of court 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
basic financial statements themselves, and other additional procedures in accordance with auditing standards
generally accepted in the United States of America. In our opinion, the combining and individual nonmajor fund
financial statements, budgetary comparison fund financial schedules, and schedule of court fines, assessments,
and surcharges are fairly stated, in all material respects, in relation to the basic financial statements taken as a
whole.
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 June 27, 2013 on our
consideration of the City’s internal control over financial reporting and our tests of its compliance with certain
provisions of laws, regulations, contracts, 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.
Charleston, South Carolina
June 27, 2013
2
MANAGEMENT'S DISCUSSION AND ANALYSIS
(Required Supplementary Information - Unaudited)
MANAGEMENT’S DISCUSSION AND ANALYSIS
(REQUIRED SUPPLEMENTARY INFORMATION – UNAUDITED)
As management of the City of Charleston, South Carolina (the City), we offer readers of the City’s financial
statements this narrative overview and analysis of the financial activities of the City for the fiscal year ended
December 31, 2012. We encourage readers to consider the information presented here in conjunction with
additional information that we have furnished in the City’s basic financial statements, which immediately follow
this section, and our letter of transmittal in the preceding Introductory Section.
FINANCIAL HIGHLIGHTS
♦ The assets of the City exceeded its liabilities at December 31, 2012, by $680,417,101 (net position). Of
this amount, $55,240,494 represents unrestricted net position, which may be used to meet the City’s
ongoing obligations to citizens and creditors.
♦ The City’s total net position increased by $52,121,583 during the fiscal year ended December 31, 2012,
with a $50,121,397 increase resulting from governmental activities and a $2,000,186 increase resulting
from business-type activities.
♦ As of the close of the current fiscal year, the City’s governmental funds reported combined ending fund
balances of $198,003,938, an increase of $58,185,504 from the prior year. Approximately 11 percent of
the total amount, $21,310,981, is available for spending at the City’s discretion (unassigned fund
balance).
♦ At the end of the current fiscal year, unrestricted fund balance (the total of the committed, assigned and
unassigned components of fund balance) for the General Fund was $29,701,292, or approximately 23.2
percent of total General Fund expenditures. Unassigned fund balance of the General Fund was
$21,355,024, or approximately 16.7 percent, of total General Fund expenditures.
OVERVIEW OF THE FINANCIAL STATEMENTS
The discussion and analysis provided here are intended to serve as an introduction to the City’s basic financial
statements. The basic financial statements are comprised of three sections: 1) government-wide financial
statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains
other supplementary information intended to furnish additional detail to support the basic financial statements
themselves.
Government-wide Financial Statements. The government-wide financial statements are designed to provide
readers with a broad overview of the City’s finances, in a manner similar to statements of a private-sector
business.
The Statement of Net Position presents financial information on all of the City’s non-fiduciary assets and
liabilities, with the difference between the two reported as net position. Over time, increases or decreases in
net position may serve as a useful indicator of whether the financial position of the City is improving or
deteriorating.
The Statement of Activities presents information showing how the City’s net position changed during the most
recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the
change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported for
some items that will result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused
vacation leave.)
3
Both of the government-wide financial statements distinguish functions of the City that are principally
supported by taxes and intergovernmental revenues (governmental activities) from other functions that are
intended to recover all or a significant portion of their costs through user fees and charges (business-type
activities). The governmental activities of the City include the broad functions of general government, public
safety, public service, urban and community development, culture and recreation, community promotions,
health and welfare, and business development and assistance. The business-type activities of the City include
Parking Facilities, the City Market and various other smaller enterprise funds including the Joseph P. Riley, Jr.
Baseball Park, the Municipal Auditorium and the Municipal Golf Course.
The government-wide financial statements can be found on pages 16-19 of this report.
Fund Financial Statements. A fund is a grouping of related accounts that is used to maintain control over
resources that have been segregated for specific activities or objectives. The City, like other state and local
governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal
requirements. All the funds of the City can be divided into three categories: governmental funds, proprietary
funds and fiduciary funds.
♦ Governmental Funds – Governmental funds are used to account for essentially the same functions reported
as governmental activities in the government-wide financial statements. However, unlike the governmentwide financial statements, governmental fund financial statements focus on near-term inflows and outflows
of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year.
Such information may be useful in evaluating a government’s near-term financing requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial
statements, it is useful to compare the information presented for governmental funds with similar
information presented for governmental activities in the government-wide financial statements. By doing
so, readers may better understand the long-term impact of the City’s near-term financing decisions. Both
the governmental funds balance sheet and the governmental funds statement of revenues, expenditures
and changes in fund balances provide a reconciliation to facilitate this comparison between governmental
funds and governmental activities.
The City maintains 22 individual governmental funds. Information is presented separately in the
governmental fund balance sheet and in the governmental fund statement of revenues, expenditures and
changes in fund balances for the General Fund, the Capital Improvements Fund, the King Street Gateway TIF
Fund, the Land Sales Fund and the Drainage Fund, which are considered to be major funds. Data from the
other 17 governmental funds are combined into a single aggregated presentation. Individual fund data for
each of these nonmajor governmental funds is provided in the form of combining statements in the
combining and individual fund statements and schedules section of this report.
The City adopts an annual appropriated budget for its General Fund. A budgetary comparison statement
has been provided for the General Fund to demonstrate compliance with this budget.
The basic governmental fund financial statements can be found on pages 20 – 28 of this report.
4
♦ Proprietary Funds – Proprietary (enterprise) funds are used to report the same functions presented as
business-type activities in the government-wide financial statements. Proprietary funds provide the
same type of information as the government-wide financial statements, only in more detail. The
proprietary fund financial statements provide separate information for the Parking Facilities Fund and
the City Market Fund, both of which are considered to be major funds of the City. Data from the
remaining 6 enterprise funds are combined into a single aggregated presentation. Individual fund data
for each of these nonmajor enterprise funds is provided in the form of combining statements in the
combining and individual fund statements and schedules section of this report.
The basic proprietary funds financial statements can be found on pages 29 - 33 of this report.
♦ Fiduciary Funds – Fiduciary funds are used to account for resources held for the benefit of parties
outside of the government. Fiduciary funds are not reported 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 used for proprietary funds.
The fiduciary fund financial statement provides information for the Firemen’s Insurance and Inspection
Fund, an agency fund for which the City acts as custodian. The City is responsible for ensuring that the
assets reported in this fund are used for their intended purpose. A brief description of this fund can be
found in Note I.B. of the financial statements. Individual fund data for this agency fund is provided in
the form of combining statements in the combining and individual fund statements and schedules
section of this report.
The fiduciary fund financial statement can be found on page 34 of this report.
♦ Notes to the Financial Statements – The notes provide additional information that is necessary to
acquire a full understanding of the data provided in the government-wide and fund financial statements.
The notes to the financial statements can be found on pages 35 - 73 of this report.
♦ Other Information – In addition to the basic financial statements and accompanying notes, this report
also presents required supplementary information concerning the City’s progress in funding its
obligation to provide other postemployment benefits (OPEB) to its employees. Required supplementary
information can be found on page 74 of this report.
The combining and individual statements and schedules referred to earlier in connection with major and
nonmajor funds are presented following the required supplementary information on OPEB, and can be
found on pages 75 to 101 of this report. In addition, General Fund and Municipal Accommodation Fee
Fund budgetary comparison schedules are presented. As required by the State, the City also presents a
Schedule of Court Fines, Assessments and Surcharges. Finally, the statistical section is presented.
5
GOVERNMENT-WIDE FINANCIAL ANALYSIS
As noted earlier, net position over time may serve as a useful indicator of a government’s financial position. In
the case of the City, assets exceeded liabilities by $680,417,101 at December 31, 2012.
By far the largest portion of the City’s net position (81 percent) reflects its net investment in capital assets (e.g.,
land, infrastructure, buildings, machinery and equipment), less any related outstanding debt that was used to
acquire those assets. The City uses these capital assets to provide a variety of services to its citizens.
Accordingly, these assets are not available for future spending. Although the City’s investment in capital assets
is reported net of related debt, it should be noted that the resources needed to repay this debt must be
provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities.
An additional portion of the City’s net position (11 percent) represents resources that are subject to external
restrictions on how they may be used. The remaining balance of $55,240,494 is unrestricted and may be used to
meet the government’s ongoing obligations to its citizens and creditors.
At the end of the current fiscal year, the City is able to report positive balances in all three categories of net
position, both for the City as a whole, as well as for its separate governmental and business-type activities. The
same situation held true for the prior fiscal year.
City of Charleston’s Net Position
Business-type
Activities
2012
2011
Governmental
Activities
2012
2011
Current, restricted and other
assets
Capital assets
Total assets
Total
Government
2012
2011
$ 247,588,124
515,321,430
762,909,554
$ 183,512,085
479,731,960
663,244,045
$ 14,313,502
103,180,312
117,493,814
$ 12,114,636
107,573,938
119,688,574
$ 261,901,626
618,501,742
880,403,368
$ 195,626,721
587,305,898
782,932,619
145,841,474
22,966,598
168,808,072
100,810,063
18,453,897
119,263,960
29,917,584
1,260,611
31,178,195
33,902,910
1,470,231
35,373,141
175,759,058
24,227,209
199,986,267
134,712,973
19,924,128
154,637,101
Net position:
Net investment in capital assets 479,834,464
Restricted
71,820,828
Unrestricted
42,446,190
Total net position
$ 594,101,482
440,437,669
68,741,470
34,800,946
$ 543,980,085
73,521,315
12,794,304
$ 86,315,619
73,914,922
10,400,511
$ 84,315,433
553,355,779
71,820,828
55,240,494
$ 680,417,101
514,352,591
68,741,470
45,201,457
$ 628,295,518
Long-term liabilities outstanding
Other liabilities
Total liabilities
The City’s overall net position improved and net position increased by $52,121,583 or 8 percent during 2012.
The reasons for this overall increase are discussed in the following sections for governmental activities and
business-type activities.
6
City of Charleston’s Changes in Net Position
Governmental
Activities
2012
2011
REVENUES:
Program revenues:
Charges for services
$ 40,262,801
Operating grants and
contributions
6,808,421
23,012,715
Capital grants and contributions
General revenues:
Property taxes, including tax
increment financing districts
74,375,035
Other taxes and fees
34,475,233
Grants and contributions not
restricted
18,566,766
(11,406)
Gain (loss) on disposal of assets
Other revenues
2,513,018
Total revenues
200,002,583
EXPENSES:
General government
Public safety
Public service
Urban and community
development
Culture and recreation
Community promotions
Health and welfare
Business development and
assistance
Interest and fiscal charges
Parking Facilities
Joseph P. Riley, Jr. Baseball Park
Angel Oak
Charleston Visitor Center
City Market
Municipal Auditorium
Municipal Golf Course
Slave Mart Museum
Total expenses
Business-type
Activities
2012
2011
Total
Government
2012
2011
$ 39,920,308
$ 24,392,732
$ 22,525,059
$ 64,655,533
$ 62,445,367
7,682,055
18,760,374
9,685
117,370
13,771
86,332
6,818,106
23,130,085
7,695,826
18,846,706
68,355,934
31,833,868
-
-
74,375,035
34,475,233
68,355,934
31,833,868
36,232
22,661,394
18,566,766
(3,379,004)
2,534,625
221,176,379
16,650,436
3,188,450
2,880,003
211,896,590
16,650,436
3,188,450
2,843,771
189,235,196
(3,367,598)
21,607
21,173,796
32,243,290
74,846,519
11,326,755
38,084,142
68,390,120
11,980,203
-
-
32,243,290
74,846,519
11,326,755
38,084,142
68,390,120
11,980,203
5,925,662
18,560,580
2,063,264
749,277
6,682,019
16,656,474
2,998,032
849,377
-
-
5,925,662
18,560,580
2,063,264
749,277
6,682,019
16,656,474
2,998,032
849,377
911,224
4,024,956
150,651,527
1,031,487
3,371,838
150,043,692
11,493,974
990,594
206,127
892,046
1,774,585
1,073,693
1,795,715
176,535
18,403,269
11,041,238
937,084
208,886
773,398
1,477,415
1,422,055
1,759,650
169,802
17,789,528
911,224
4,024,956
11,493,974
990,594
206,127
892,046
1,774,585
1,073,693
1,795,715
176,535
169,054,796
1,031,487
3,371,838
11,041,238
937,084
208,886
773,398
1,477,415
1,422,055
1,759,650
169,802
167,833,220
Excess before transfers
Transfers
49,351,056
770,341
39,191,504
(127,429)
2,770,527
(770,341)
4,871,866
127,429
52,121,583
-
44,063,370
-
Increase in net position
Net position, beginning
50,121,397
543,980,085
39,064,075
504,916,010
2,000,186
84,315,433
4,999,295
79,316,138
52,121,583
628,295,518
44,063,370
584,232,148
$ 594,101,482
$ 543,980,085
$ 86,315,619
$ 84,315,433
$ 680,417,101
$ 628,295,518
Net position, ending
7
Governmental Activities. During the current fiscal year, net position for governmental activities increased the
City’s net position by $50,121,397 from the prior year for an ending balance of $594,101,482. This compares to
a prior year increase of $39,064,075, a difference of $11,057,322. Key elements of this change are as follows:
♦ Property taxes including tax increment financing districts increased $6,019,101 or 9 percent to
$74,375,035 in 2012. This increase is attributable to improvement in the real estate market with more
home sales than in recent years.
♦ Capital grants and contributions increased by $4,252,341 or 23 percent to $23,012,715 during 2012.
This change was predominantly due to the fact that the City received $2,408,262 more in capital
contributions relating to the Gaillard Auditorium renovation and $2,278,153 more in federal funding
relating to public safety grants over the prior year.
Program Revenues and Expenses – Governmental Activities
8
Revenues by Source - Governmental Activities
Other
Grants & contributions not related to
specific programs
Hospitality, accommodations &
franchise
Property taxes, including tax
increment financing districts
2012
2011
Capital grants & contributions
Operating grants & contributions
-
10
20
30
40
50
Millions
60
70
80
Expenses by Function - Governmental Activities
Interest & fiscal charges
Business development &
assistance
Health & welfare
Culture & recreation
2012
2011
Urban & community development
Public service
Public safety
General government
-
10
20
30
40
50
60
70
80
Millions
Business-Type Activities. Business-type activities increased the City’s net position in 2012 by $2,000,186,
approximately 4 percent of the total growth in the net position of the City. This compares to a prior year
increase of $4,999,295. This change was largely due to the $3,370,701 loss on disposition of the Gaillard
Auditorium, as the building was essentially demolished as part of the current renovation.
9
(REQUIRED SUPPLEMENTARY INFORMATION UNAUDITED)
FINANCIAL ANALYSIS OF THE CITY’S FUNDS
As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance-related legal
requirements.
Governmental Funds
The focus of the City’s governmental funds is to provide information on near-term inflows, outflows and
balances of spendable resources. Such information is useful in assessing the City’s financing requirements. In
particular, unassigned fund balance may serve as a useful measure of a government’s net resources available for
discretionary use as they represent the portion of fund balance which has not yet been limited to use for a
particular purpose by either an external party, the City itself, or a group or individual that has been delegated
authority to assign resources for use for particular purposes by City Council.
At December 31, 2012, the City’s governmental funds reported combined fund balances of $198,003,938, an
increase of $58,185,504 in comparison with the prior year. Approximately 10.8 percent of this amount
($21,310,981) constitutes unassigned fund balance, which is available for spending at the government’s
discretion. The remainder of the fund balance is either nonspendable, restricted, committed or assigned to
indicate that it is 1) not in spendable form ($11,897,543), 2) restricted for particular purposes ($136,202,783), 3)
committed for particular purposes ($407,214), or 4) assigned for particular purposes ($28,185,417).
General Fund. The General Fund is the chief operating fund of the City. At the end of the current fiscal year,
unassigned fund balance of the General Fund was $21,355,024, while total fund balance increased to
$29,759,572. As a measure of the General Fund’s liquidity, it may be useful to compare both unassigned fund
balance and total fund balance to total General Fund expenditures. Unassigned fund balance represents
approximately 16.7 percent of total General Fund expenditures, while total fund balance also represents 23.2
percent of that same amount.
The fund balance of the City’s General Fund increased by 32 percent or $7,238,610 during 2012. Highlights in
the General Fund were as follows:
♦ Property taxes increased $6,697,539 or 12 percent during 2012. This increase is attributable to the
improved real estate market in 2012, with more home sales than in recent years, as well as timing
differences due to improved collections for the current year.
♦ Local option sales taxes also increased $1,227,021 or 10 percent during 2012. This was due to increased
consumer spending with the improved economy, a larger share of the allocation from the State due to a
full year of higher population numbers based on the 2010 Census, and an additional distribution
reallocating taxes from the dissolution of the Town of James Island.
Capital Improvements Fund. This major fund accounts for capital projects funded primarily by various general
obligation bonds and a portion of the Hospitality Fee, as well as assets purchased under the City’s lease
purchase program. Federal grants and contributions also funded acquisitions during the current year. Fund
balance decreased by 13 percent or $2,840,250.
Donations and settlements increased by $2,840,444 (68 percent) to a total of $6,992,069 in 2012, primarily due
to 2012 contributions in the amount of $6,462,710 ($4,054,448 in 2011) from a private donor towards the
renovation of the Gaillard Municipal Auditorium. Capital outlay of $27,772,671 in 2012 was 81 percent more
than that of 2011 ($15,303,725), as construction picked up on the Gaillard Center and Municipal Building with
costs of $15,537,295 in 2012 ($7,189,934 in 2011.) Property totaling $2,021,535 was acquired for the West
Ashley Circle project in 2012 and construction increased on Fire Station #9 with costs of $2,202,842 ($205,244 in
2011.) Other financing sources in 2012 increased $3,719,212 due to additional lease purchase financing of
public safety equipment, as well as rolling stock and capital equipment acquisitions.
10
King Street Gateway TIF. This major fund accounts for various capital projects that are primarily funded by
special redevelopment bonds, property taxes from this tax increment financing (TIF) district and special
assessments levied on property owners in the King Street TIF District. During 2012, fund balance increased by 5
percent or $2,012,982, as compared to a 4 percent increase for 2011 of $1,399,894. Property tax revenues for
the TIF district remained relatively constant at $8,344,847 and transfers out in 2012 decreased slightly to
$4,812,106. TIF revenues were used to fund the Municipal Building ($4,233,186) and other projects.
Land Sales. This major fund accounts for the purchase and sale of property and the subsequent transfer of the
proceeds from the sales to various capital projects funds. During 2012 fund balance decreased $2,108,045 or 13
percent from a prior year balance of $15,660,131. This compared to a 3 percent decrease in 2011 of $526,489.
During 2012 capital outlay totaled $1,077,161 (an increase of $704,987 over 2011) due to an acquisition of a
piece of property relating to the new Horizon Area Redevelopment project.
Drainage. This major fund accounts for stormwater management and other drainage infrastructure. Funding
sources are primarily from tax revenues from the two mills assessed on real and personal property, certain
business licenses, transfers from stormwater utility fees and, starting in 2011, federal grants. During 2012 the
City also issued $46,725,000 of stormwater revenue bonds. During 2010 the City was awarded a $10 million
Transportation Investment Generating Economic Recovery (TIGER) grant to implement the first phase of a multiphase project to alleviate drainage problems on the Crosstown and in the neighborhoods of the Spring Street
and Fishburne Street drainage basins. During 2012 $6,335,478 of this federal grant was received ($3,664,522
was received in 2011.) Capital outlay increased $2,134,375 in 2012 (from $7,290,732 in 2011) primarily as a
result of this project, also known as the US Highway 17 Septima Clark Parkway Transportation Infrastructure
Project, and Market Street drainage improvements. Other financing sources increased $51,863,601 in 2012 due
to the above mentioned stormwater revenue bonds.
Proprietary Funds
The City of Charleston’s proprietary funds provide the same type of information found in the government-wide
financial statements, but in more detail. The City’s enterprise operations include the following funds: Angel
Oak, Charleston Visitor Center, City Market, Joseph P. Riley, Jr. Baseball Park, Municipal Auditorium, Municipal
Golf Course, Parking Facilities and Slave Mart Museum. The major funds are the Parking Facilities Fund and the
City Market Fund. At the end of the current fiscal year, the City’s proprietary funds reported total ending net
position of $86,315,619, of which $12,794,304 is unrestricted. The balance of net position is classified as net
investment in capital assets.
Parking Facilities Fund. Net position increased in the Parking Facilities Fund by 8 percent or $4,767,337, as
compared to an increase of $4,737,772 in 2011. The largest dollar variance in this fund resulted from sales
increasing by $1,508,881 or 8 percent during 2012. This increase in revenue was mainly due to increased
transient parking during 2012 believed to be a result of the improving economy. Transfers out from the Parking
Facilities Fund increased by $1,663,362; this was largely due to increased transfers to the General Fund
($1,659,388) in order to adjust fund balances to targeted levels.
City Market Fund. Net position of this fund increased in 2012 by $178,637 or 13 percent to $1,573,184. The
largest dollar variance in this fund related to an increase in revenues from use of monies and properties of
$259,209 or 72 percent. This was due to the fact that the renovation the Market has been undergoing since
2009 was completed in June 2011.
11
GENERAL FUND BUDGETARY HIGHLIGHTS
The only differences between original and final budgeted amounts for the General Fund consisted of $562,893
of prior year outstanding encumbrances that were reappropriated, as well as transfers within or between
departments.
Actual 2012 General Fund revenues were more than the amount budgeted by 6.5 percent ($7,723,455), while
total expenditures were less than the amount budgeted by 1.2 percent ($1,586,947). Total net other financing
sources were also less than budgeted by 1.9 percent ($168,899).
The most significant budget to actual revenue variance involved property taxes, which were over budget by 9.4
percent or $5,307,818. Although the property tax base increased due to an improving real estate market, part
of the variance can be attributed to timing of collections from Charleston County and very conservative
budgeting due to the uncertainty in the economy. The second largest variance is in the area of local option sales
tax and is a result of increased consumer spending due to the improving economy. Again, 2012 revenues were
budgeted very conservatively due to economic uncertainty and actual results exceeded expectations.
Within current expenditures, the largest variance is in Public Safety, which was below budget by $1,151,777 or
1.7 percent. The Police Department is responsible for most of this variance ($928,849), with savings in
personnel and benefits of $367,971 and savings in operating and capital of $560,878. The personnel and fringe
savings is a result of vacancy savings from the City’s hiring freeze. Although most public safety positions are
exempt from the hiring freeze, some civilian positions are not. Savings also occur because the hiring process
must be timed to coordinate with available slots in the State Police Academy. A large portion of the savings
($163,747) in operating funds is due to the price of gasoline for 2012 averaging below the budgeted amount.
The savings in capital of $156,675 is due to a planned relocation of the forensics lab being deferred. The Fire
Department exceeded budget by $245,007 with most of the variance being in personnel and overtime costs.
Offsetting this overage, the Traffic and Transportation department was under budget by $336,943, mostly as a
result of traffic signalization projects that were not completed in 2012. The unspent funds for these projects are
included in the encumbrances that rolled into 2013.
Employee benefits, within the General Government function, were over budget by $1,236,438 due to higher
than anticipated workers’ compensation costs. The Public Service function was under budget by $734,916,
which can be attributed to vacancy savings due to the hiring freeze.
12
CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets. The City’s investment in capital assets for its governmental and business-type activities as of
December 31, 2012, amounts to $618,501,742 (net of accumulated depreciation). This investment in capital
assets includes land and improvements, buildings and improvements, machinery and equipment, works of art,
drainage systems, bridges and tunnels, as well as streets and sidewalks. (See Notes I.D.6. and III.G. to the
financial statements). The total increase in the City’s investment in capital assets from 2011 to 2012 was
approximately 5 percent.
Major capital asset events during the current fiscal year included the following:
♦ Approximately $15.5 million was spent towards renovation and construction of the Gaillard Center and
the new municipal building.
♦ Approximately $3.4 million of building cost (net of accumulated depreciation) was removed relating to
the demolition of the pre-existing Gaillard Auditorium.
♦ Developers contributed streets, sidewalks and land totaling $4.8 million.
♦ Approximately $7.0 million was spent towards the US Highway 17 Septima Clark Parkway (Crosstown)
Transportation Infrastructure Project.
♦ Approximately $2.3 million was spent towards the Market Street drainage project.
♦ Approximately $2.2 million was spent towards construction of Fire Station #9.
Other significant additions during 2012 included construction on the Charlotte Street Park project, acquisition of
property for the West Ashley Circle project, work towards various parks projects, as well as equipment in the
police, fire and public service departments.
City of Charleston’s Capital Assets (Net of Depreciation)
Land and improvements
Building and improvements
Machinery and equipment
Works of art
Construction in progress
Infrastructure
Total
Governmental Activities
2012
2011
$ 86,442,009
$ 82,696,243
165,732,657
163,313,848
16,866,677
14,379,536
334,250
334,250
50,318,242
38,559,534
195,627,595
180,448,549
$ 515,321,430
$ 479,731,960
Business-type Activities
2012
2011
$ 10,182,252
$
9,957,989
91,112,115
96,494,113
911,644
818,838
55,000
919,301
302,998
$ 103,180,312
$ 107,573,938
Total Government
2012
2011
$ 96,624,261
$ 92,654,232
256,844,772
259,807,961
17,778,321
15,198,374
389,250
334,250
51,237,543
38,862,532
195,627,595
180,448,549
$ 618,501,742
$ 587,305,898
Additional information on the City’s capital assets is provided in Note III.G. to the financial statements.
13
Long-Term Liabilities. At the end of the current fiscal year, the City had $175,759,058 of long-term liabilities
outstanding, up $41,046,085 (30 percent) from the previous year. Included in that amount as of December 31,
2012, the City had total bonded debt outstanding of $139,678,941. Of this amount, $53,800,685 is comprised of
debt backed by the full faith and credit of the government; $15,121,726 is comprised of special redevelopment
bonds secured by proceeds from the incremental increase in the tax base related to these properties, as well as
parking fees generated by garages located within the districts; $64,620,638 is comprised of revenue bond debt
secured by pledges of parking fees, operating revenues of the City Market, State and City accommodations
taxes, and the revenues of the Stormwater system; and $6,135,982 is comprised of certificates of participation
secured by the capital assets constructed with their proceeds. The remainder of the City’s long-term obligations
comprises notes payable, capital leases, an intergovernmental agreement, claims and judgments, and
compensated absences.
The City’s total debt increased by $41,046,085 (30.5 percent) during the current fiscal year. The primary reason
for the increase was a new issuance of $46,725,000 of stormwater revenue bonds with a premium of
$5,138,601. Decreases were due to regularly scheduled principal reductions on existing outstanding debt.
In addition to the one new debt issuance, the City also financed new capital leases totaling $5,806,899 during
the year. This was an increase of $3,760,439 in new equipment financing over the prior year.
Standard & Poors and Moody’s Investors Service have assigned ratings of “AAA” & “Aa1”, respectively, for the
City’s general obligation bonds. Standard & Poors and Moody’s Investors Service have assigned ratings of “AA+”
and “Aa2”, respectively, for the City’s Stormwater System Revenue Bonds.
Under State law, the City is authorized to issue general obligation bonds (not subject to voter approval) in a
principal amount not greater than 8 percent of total assessed value of all taxable property. As of December 31,
2012, Charleston’s 8 percent general obligation debt capacity (amount remaining available without a
referendum) was $35,934,471, up from $32,850,630 in 2011 reflecting both the increased limit due to higher
assessment values and lower principal amounts of outstanding debt.
City of Charleston’s Long-Term Liabilities
General obligation bonds
Special redevelopment bonds
Revenue bonds
Certificates of participation
Total bonded debt
Notes
Capital leases
Intergovernmental agreement
Claims and judgments
Compensated absences
Total long-term liabilities
Governmental
Activities
2012
2011
$ 37,108,543 $ 40,001,075
15,121,726
17,827,453
53,413,601
2,075,000
4,451,551
5,800,370
110,095,421
65,703,898
14,755,551
16,405,128
6,789,987
3,799,577
375,207
750,414
8,098,372
8,338,021
5,726,936
5,813,025
$ 145,841,474 $ 100,810,063
Business-type
Activities
2012
2011
$ 16,692,142 $ 18,840,438
11,207,037
12,520,917
1,684,341
2,187,472
29,583,520
33,548,827
110,113
110,189
223,951
243,894
$ 29,917,584 $ 33,902,910
Total
Government
2012
53,800,685
15,121,726
64,620,638
6,135,892
139,678,941
14,755,551
6,900,100
375,207
8,098,372
5,950,887
$ 175,759,058
$
More detailed information on long-term liabilities is provided in Note III.H. to the financial statements.
14
2011
58,841,513
17,827,453
14,595,917
7,987,842
99,252,725
16,405,128
3,909,766
750,414
8,338,021
6,056,919
$ 134,712,973
$
ECONOMIC FACTORS AND NEXT YEAR’S BUDGET AND RATES
The approved 2013 budget was passed in December of 2012 and totaled $134,920,624 in General Fund
revenues and $138,875,264 in General Fund expenditures, with the $3,954,640 difference funded by transfers in
from the enterprise funds that have budgeted surpluses. On February 26, 2013, the 2013 budget was amended
to increase revenues and expenditures by $3,477,878 each.
The following economic factors currently affect the City and were considered in developing the 2013 fiscal year
budget:
♦ Unemployment in the Charleston metropolitan area reached a high of 9.5 percent in 2009, but has since
declined to 6.0 percent in April of 2013, lower than the state average of 8.0 percent.
♦ A property tax increase of 3.5 mills was included in the 2013 budget amendment, for a total millage of
80.3 mills for general operations (and 2 mills for the Drainage Fund). Additionally, property tax revenue
also includes an increase of $2,205,586 for growth in the tax base.
♦ The amended General Fund 2013 budget is 7.25 percent higher than the 2012 budget for revenues and
7.40 percent higher for expenditures. Areas of increase in revenues include property taxes, as
mentioned above, business licenses, permits and fees, and local option sales tax. With the exception of
property taxes, all of these revenue increases result from natural growth and improvements in the
economy.
♦ The 2013 expenditure budget continues to focus on the following: strengthening the police and fire
departments, funding of core municipal services, maintaining strong funding of City-sponsored
infrastructure improvements and efforts to be an employer of choice. Significant expenditure increases
in 2013 include healthcare, workers’ compensation, and retirement costs for all departments.
Additionally, debt service costs increased due to increased borrowing in 2012 and 2013 for rolling stock
lease purchase agreements. The millage increase will fund public safety expenditures, with $1,766,802
for the Police Department (addition of 19 officers) and $1,711,076 for the Fire Department (addition of
a ladder truck and related personnel). Other public safety increases include salaries for retention of
personnel under grant agreements, matches for equipment purchases under grant agreements, and
coverage of prior year salary increases, plus the aforementioned benefit costs.
At December 31, 2012 unassigned fund balance in the General Fund was $21,355,024. Included in the assigned
fund balance for the General Fund is $1,083,000 which the City has appropriated for general operations in the
2013 budget. This was to meet unavoidable increases in operating costs, such as energy, health care and
workers’ compensation, as well as to meet the goal of providing a cost of living increase for employees.
REQUESTS FOR INFORMATION
This financial report is designed to provide our citizens, customers, investors and creditors with a general
overview of the City’s finances. If you have any questions about this report or need any additional financial
information, contact the Department of Budget, Finance and Revenue Collections by mail at P.O. Box 304,
Charleston, South Carolina 29402 or by phone at (843) 579-7529. You may also visit the City website at
www.charleston-sc.gov.
15
BASIC FINANCIAL STATEMENTS
Exhibit 1
STATEMENT OF NET POSITION
DECEMBER 31, 2012
Assets
Cash and cash equivalents
Investments
Receivables, net of allowances
Property taxes
Accounts
Other
Due from federal government
Due from state and local governments
Interest receivable
Internal balances
Inventories, at cost
Prepaid items
Property held for sale
Notes receivable
Due within one year
Due in more than one year
Deferred costs
Temporarily restricted assets
Mortgages receivable
Other postemployment benefits asset
Capital assets
Nondepreciable
Depreciable, net of
accumulated depreciation
Total assets
16
Governmental
Activities
Businesstype
Activities
Total
$ 43,543,889
152,048
$ 13,517,044
-
$ 57,060,933
152,048
39,978,694
4,544,402
14,263,888
2,133,170
25,389,239
238,475
794,534
22,194
189,716
3,517,406
795,312
421,539
(794,534)
66,304
190,954
-
39,978,694
5,339,714
14,685,427
2,133,170
25,389,239
238,475
88,498
380,670
3,517,406
452,867
11,836,082
603,456
116,883
452,867
11,836,082
720,339
98,265,283
1,625,702
37,079
-
98,265,283
1,625,702
37,079
195,558,830
11,156,553
206,715,383
319,762,600
92,023,759
411,786,359
762,909,554
117,493,814
880,403,368
(Continued)
Exhibit 1
DECEMBER 31, 2012
Businesstype
Activities
Governmental
Activities
Liabilities
Accounts payable
Accrued salaries, wages and benefits
Accrued interest payable
Other accrued liabilities
Deposits
Assets held for others
Due to state and local governments
Unearned revenue
Noncurrent liabilities
Due within one year
Due in more than one year
Total liabilities
$ 11,669,024
3,681,591
1,857,104
750,878
2,119,910
319,729
2,142,972
425,390
Net position
Net investment in capital assets
Restricted for
Debt service
Capital and infrastructure projects
Tourism activities
Small business assistance
Housing services/community development
Law enforcement
Cultural activities
Recreation and community programs
Unrestricted
Total net position
773,120
66,734
325,093
33,651
60,413
1,600
$ 12,442,144
3,748,325
2,182,197
784,529
2,180,323
319,729
2,142,972
426,990
31,915,610
113,925,864
168,808,072
2,809,669
27,107,915
31,178,195
34,725,279
141,033,779
199,986,267
479,834,464
73,521,315
553,355,779
6,864,857
57,591,985
5,497,212
703,209
580,709
542,060
27,875
12,921
42,446,190
12,794,304
6,864,857
57,591,985
5,497,212
703,209
580,709
542,060
27,875
12,921
55,240,494
$ 594,101,482
$ 86,315,619
$ 680,417,101
See Notes to Financial Statements
17
$
Total
Exhibit 2
STATEMENT OF ACTIVITIES
Governmental activities
General government
Public safety
Public service
Urban and community development
Health and welfare
Business development and assistance
Total governmental activities
18
Business-type activities
Parking facilities
J. P. Riley Jr. Baseball Park
Angel Oak
City Market
Slave Mart Museum
Total business-type activities
Total government
Expenses
Charges
for Services
$ 32,243,290
74,846,519
11,326,755
5,925,662
18,560,580
2,063,264
749,277
911,224
4,024,956
$ 32,472,943
3,610,485
254,340
407,566
2,848,843
668,624
-
150,651,527
Program Revenues
Operating
Capital
Grants and
Grants and
Contributions
Contributions
$
Net (Expense) Revenue and Changes in Net Position
Governmental
Activities
Business-type
Activities
$
Total
252,837
2,185,299
2,383
3,703,738
419,851
244,313
-
$ 17,967,517
2,413,155
1,951,166
680,877
-
$ 18,450,007
(66,637,580)
(11,070,032)
136,808
(14,611,009)
(1,394,640)
(504,964)
(911,224)
(4,024,956)
40,262,801
6,808,421
23,012,715
(80,567,590)
11,493,974
990,594
206,127
892,046
1,774,585
1,073,693
1,795,715
176,535
19,243,587
324,146
198,539
407,593
2,046,722
178,038
1,751,314
242,793
9,685
-
62,370
55,000
-
-
7,811,983
(666,448)
2,097
(484,453)
327,137
(895,655)
(44,401)
66,258
7,811,983
(666,448)
2,097
(484,453)
327,137
(895,655)
(44,401)
66,258
18,403,269
24,392,732
9,685
117,370
-
6,116,518
6,116,518
$ 169,054,796
$ 64,655,533
6,818,106
$ 23,130,085
6,116,518
(74,451,072)
$
(80,567,590)
-
$ 18,450,007
(66,637,580)
(11,070,032)
136,808
(14,611,009)
(1,394,640)
(504,964)
(911,224)
(4,024,956)
-
(80,567,590)
(Continued)
General revenues
Taxes
Property, net of tax increment financing districts
Tax increment financing districts
Hospitality
Accommodations
Franchise
Penalties
Grants and contributions not restricted to specific programs
Unrestricted revenue from use of monies and property
Loss on disposition of capital assets
Miscellaneous
Transfers
Total general revenues and transfers
19
Change in net position
Net position
Beginning of year
End of year
62,883,767
11,491,268
11,481,975
9,586,433
13,001,347
405,478
18,566,766
2,181,137
(11,406)
331,881
770,341
21,607
(3,367,598)
(770,341)
62,883,767
11,491,268
11,481,975
9,586,433
13,001,347
405,478
18,566,766
2,202,744
(3,379,004)
331,881
-
130,688,987
(4,116,332)
126,572,655
50,121,397
2,000,186
52,121,583
543,980,085
84,315,433
628,295,518
$ 594,101,482
$ 86,315,619
$ 680,417,101
BALANCE SHEET
GOVERNMENTAL FUNDS
DECEMBER 31, 2012
Capital
Improvements
General
Assets
Investments
Property taxes
Accounts
Other
Mortgages and other notes receivable
Property held for resale
Due from other funds
Inventories
Security deposits
Prepaid items
Temporarily restricted
Total assets
$
20
-
$
9,432,808
152,048
King Street
Gateway TIF
$
4,166,515
-
28,902,708
13,534,725
86,439
20,773,267
805,325
22,194
24,230
1,300
23,245
463,040
70,623
-
7,807,203
487,979
-
$ 64,148,888
13,511,640
23,654,704
28,545,859
$ 41,007,556
$
Exhibit 3
Land
Sales
$
7,470,075
-
Drainage
$
9,088,080
-
Other
Governmental
Funds
$
13,386,411
-
Total
Governmental
Funds
$
43,543,889
152,048
2,265,100
9,731
865,000
8,187,912
-
864,152
739,325
862,355
30,204
2,404,631
2,279,302
718,132
1,284,161
2,802,598
11,423,949
326,343
11,418
-
39,978,694
4,544,402
14,263,888
2,133,170
25,389,239
12,288,949
396,966
8,993,237
22,194
11,418
54,434
$ 18,797,818
54,371,202
$ 65,955,318
1,836,582
36,473,527
98,265,283
250,037,811
$
$
(Continued)
BALANCE SHEET
GOVERNMENTAL FUNDS
DECEMBER 31, 2012
Capital
Improvements
General
Liabilities and fund balances
Liabilities
Accounts payable
Accrued salaries, wages, and benefits
Claims and judgments payable
Compensated absences payable
Deposits
Due to other funds
Deferred revenues
Unearned revenue
Total liabilities
$
Fund balances
Nonspendable
Long-term receivables
Property homeownership
Other
Restricted
Law enforcement
Tourism activities
Cultural activities
Debt service
Committed
Debt service
Assigned
Community services
Employee benefits
Purchases on order
Subsequent year's budget: appropriation
of fund balance
Economic development
Unassigned
Total fund balances
Total liabilities and fund balances
3,392,535
179,763
3,613,024
1,898,885
1,139
205,996
19,910
2,126,835
7,384,243
15,461,476
105,510
34,389,316
4,765,823
1,356
1,052
37,572
4,805,803
$
12,763
1,295,811
1,308,574
46,424
70,623
-
-
11,856
-
12,718,986
1,483,767
38,215,215
-
-
-
5,406,322
600,000
1,196,946
6,059,292
-
-
1,083,000
60,000
21,355,024
29,759,572
18,848,901
39,698,982
23,654,704
$ 41,007,556
$ 64,148,888
21
$
King Street
Gateway TIF
$
Exhibit 3
Land
Sales
$
Other
Governmental
Funds
Drainage
5,901
2,100,000
3,139,831
5,245,732
$
2,451,793
4,361
11,001
41,126
2,508,281
$
1,040,209
139,966
62,850
543,830
5,136
814,460
1,087,381
82,335
3,776,167
Total
Governmental
Funds
$
11,669,024
319,729
3,681,591
1,898,885
1,139
750,878
2,119,910
2,142,972
8,198,703
21,063,197
187,845
52,033,873
-
30,204
11,423,949
326,343
-
11,423,949
396,966
76,628
-
4,406,675
59,010,158
703,209
542,060
5,497,212
27,875
580,709
1,065
2,612,218
10,391,778
703,209
542,060
5,497,212
27,875
580,709
12,921
8,502,660
120,336,137
-
-
407,214
407,214
13,552,086
-
-
64,490
163,281
-
64,490
163,281
25,017,700
600,000
1,196,946
13,552,086
63,447,037
(44,043)
32,697,360
1,083,000
60,000
21,310,981
198,003,938
$ 18,797,818
$ 65,955,318
$
36,473,527
$
250,037,811
RECONCILIATION OF THE BALANCE SHEET - GOVERNMENTAL FUNDS
TO THE GOVERNMENT-WIDE STATEMENT OF NET POSITION
DECEMBER 31, 2012
Exhibit 4
Amounts reported for governmental activities in the statement of net position are different
because of the following:
Total governmental fund balances
$ 198,003,938
Capital assets used in governmental activities are not financial resources and therefore are not
reported in the governmental funds (capital assets of $639,919,651; net of accumulated
depreciation of $124,598,221).
515,321,430
Other long-term assets are not available to pay for current period expenditures and therefore
are not reported or are deferred in the funds.
Property taxes
$
3,762,993
Franchise fees receivable
11,250,836
State aid to subdivisions
1,112,582
HUD mortgages receivable
1,625,702
Notes receivable
865,000
Grants
91,246
Court fines
1,250,605
Deferred interest receivable on note
9,731
Interest on notes receivable
133,063
Interest on HUD mortgages
105,412
Donated and grant related property held for
resale
3,120,440
Deferred revenue related to Charleston
County School District
2,265,100
Other receivables
455,104
OPEB asset
37,079
Unamortized bond issuance costs
603,456
Disbursements for maintenance agreements reflected in the funds cover periods extending
beyond year-end.
26,688,349
123,864
Long-term liabilities, including bonds payable and accrued interest, are not due and payable in
the current period and therefore are not reported in the funds.
Notes payable
$
(14,755,551)
(37,060,000)
Certificates of participation
(4,478,985)
Revenue bonds
(48,275,000)
Redevelopment bonds
(15,121,726)
Capital leases
(6,789,987)
(375,207)
Claims and judgments payable
(6,199,487)
(5,725,797)
Accrued interest
(1,857,104)
Unamortized deferred refunding costs and
(premiums) discounts on debt issuance
(5,159,710)
(145,798,554)
The funds reflect multi-year real estate rental agreements for which revenues are deferred and
amortized over the period of the agreement in the statement of net position.
Net position of governmental activities
(237,545)
$ 594,101,482
22
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
Capital
Improvements
General
King Street
Gateway TIF
Revenues
Taxes
Property, net of tax increment
financing districts
Other
Licenses, fees and permits
Fines and forfeitures
Intergovernmental-federal
Intergovernmental-state and local
Local option sales tax
Other
Revenues from use of money and property
Donations and settlements
Other
$
Total revenues
Expenditures
Current
General government
Public safety
Public service
Health and welfare
Capital outlay
Debt service
Principal retirement
Bond issuance costs
Total expenditures
Excess (deficiency) of revenues over
expenditures
61,577,811
40,035,823
1,497,456
260,302
$
905,128
123,245
$
8,344,847
-
13,824,345
4,178,042
2,778,893
1,422,446
332,639
729,228
126,636,985
36,759
6,992,069
9,625
8,066,826
82,009
8,426,856
28,534,181
64,685,949
10,514,216
2,614,805
14,071,579
661,671
499,948
863,564
-
605,223
14,922
230,493
27,772,671
4,146
45,801
4,576,710
1,119,623
128,142,246
28,623,309
1,432,726
119,095
1,601,768
(1,505,261)
(20,556,483)
6,825,088
12,521,308
(4,073,450)
250,340
45,673
8,743,871
12,739,399
(759,989)
5,736,823
17,716,233
(4,812,106)
(4,812,106)
7,238,610
22,520,962
(2,840,250)
21,689,151
2,012,982
37,686,000
Other financing sources (uses)
Transfers in
Transfers out
Insurance recoveries
Sale of capital assets
Bond premium received
Capital lease issuance
Issuance of revenue bonds
Total other financing sources (uses)
-
Net change in fund balances
Fund balance - at beginning of year
$
Fund balance - at end of year
29,759,572
23
$ 18,848,901
$ 39,698,982
Exhibit 5
Land
Sales
$
$
Other
Governmental
Funds
Drainage
-
$
1,818,608
471,733
12,967
6,335,478
$
2,578,458
16,082,553
7,691,267
136,052
8,182,505
Total
Governmental
Funds
$
63,396,419
10,923,305
16,082,553
49,103,951
1,646,475
14,901,530
19,463
19,463
14,400
433,188
9,086,374
4,338,261
242,703
793,497
293,787
1,051,737
41,390,820
13,824,345
8,516,303
3,021,596
2,368,574
8,051,683
1,790,590
193,627,324
30,000
1,077,161
258,363
9,425,107
2,774,352
2,992,076
30
3,715,163
3,097,768
1,395,218
162,558
3,092,837
32,206,265
67,692,947
10,514,246
6,329,968
17,399,840
2,056,889
662,506
863,564
41,413,577
5,901
1,113,062
758,684
15,250
416,319
10,873,723
5,102,606
1,832,429
24,165,037
11,870,726
3,092,298
416,319
194,519,145
(1,093,599)
(1,787,349)
17,225,783
(1,014,446)
(1,014,446)
3,820,495
5,138,601
46,725,000
55,684,096
5,627,047
(23,277,917)
410,547
(17,240,323)
34,708,249
(33,937,908)
250,340
456,220
5,138,601
5,736,823
46,725,000
59,077,325
(2,108,045)
15,660,131
53,896,747
9,550,290
(14,540)
32,711,900
58,185,504
139,818,434
13,552,086
$ 63,447,037
$
32,697,360
(891,821)
$ 198,003,938
Exhibit 6
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS TO
THE GOVERNMENT-WIDE STATEMENT OF ACTIVITIES
Amounts reported for governmental activities in the statement of activities are different because:
Net change in fund balances - total governmental funds
$
Governmental funds report capital outlays as expenditures. However, in the statement of activities, the cost of those
assets is allocated over their estimated useful lives as depreciation expense. This is the amount by which capital outlays
exceeded depreciation in the current period.
Capital outlay
$
41,541,677
Depreciation expense
(11,033,906)
In the statement of activities, the gain on disposal of capital assets is reported. Conversely, governmental funds
generally do not report any gain or loss on disposal of capital assets.
Net book value
58,185,504
30,507,771
(68,986)
In the statement of activities, revenue from infrastructure assets contributed to the City by real estate developers is
reported. Since such contributions result in neither the receipt nor the use of current financial resources, they are not
reflected in the fund statements.
4,784,189
In the statement of activities, revenue from capital assets contributed to the City by private citizens or other
governments is reported. Since such contributions result in neither the receipt nor the use of current financial
resources, they are not reflected in the fund statements.
409,219
Transfers of capital assets between business-type and governmental activities do not result in the use or receipt of
current financial resources. Governmental activities transferred out assets with a net book value of $42,723.
(42,723)
Because some property taxes will not be collected for several months after the City's fiscal year-end, they are not
considered "available" revenues in the governmental funds. Similarly, other revenues that do not provide current
financial resources are not reported as revenues in the fund statements.
Amounts not meeting prior year availability criteria,
recognized In governmental funds In current year:
Property taxes
Franchise taxes
Court fines
Grant revenues
Interest income
Property receivable
Other
Amounts not meeting current year availability criteria,
not recognized in governmental funds in current year:
Property taxes
Franchise taxes
Court fines
Grant revenues
Interest income
Property receivable
Other
$
(3,707,682)
(10,947,369)
(1,542,637)
(1,090,289)
(746,507)
(9,731)
(2,265,100)
(522,975)
3,762,993
11,250,836
1,250,605
1,112,582
91,246
9,731
2,265,100
455,104
Payments received on some outstanding mortgages receivable are revenues in the governmental funds, but the
repayment reduces mortgages and accrued interest receivable in the statement of net position and does not result in a
revenue in the statement of activities.
(634,093)
(84,168)
(Continued)
24
Exhibit 6
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS TO
THE GOVERNMENT-WIDE STATEMENT OF ACTIVITIES
Debt issued to qualified recipients under various grant programs is reported as an expenditure in the governmental
funds. However, such expenditures are reflected on the statement of net position as an increase in mortgages
receivable, net of an allowance for bad debts.
$
291,260
Payments received on multi-year real estate rental agreements were reported as revenues in the governmental funds
when collected, but revenues are deferred and amortized over the period of the agreement in the statement of net
position.
12,502
Disbursements for maintenance agreements that cover periods extending beyond year end are expenditures in the
governmental funds but are deferred and amortized over the maintenance period in the statement of net position.
12,302
The issuance of long-term debt (e.g., bonds, leases) provides current financial resources to governmental funds, while
the repayment of the principal of long-term debt consumes the current financial resources of governmental funds.
Neither transaction, however, has any effect on net position. Also governmental funds report the effect of issuance
costs, premiums, discounts and similar items when debt Is first issued, whereas these amounts are deferred and
amortized in the statement of activities. The net effect of these differences in the treatment of long-term debt and
related items is as follows:
Refunding bonds issued
Capital lease financing
Principal repayments
Amortization of bond issuance costs
Amortization of issuance premiums,
discounts and refunding costs
$
(46,725,000)
(5,736,823)
375,207
11,870,726
353,652
(5,141,242)
(45,003,480)
Certain properties purchased and sold by the City for resale in its affordable housing Initiative are reported as
expenditures or revenues, respectively, in the fund statements due to grant reporting constraints. The resulting assets
are reported as assets held for resale in the government-wide statements.This is the change in the cost of those assets,
including closing costs.
2,036,895
Accrued interest income on loans to other entities do not result in current financial resources and, therefore, are not
reported as revenues in the governmental funds.
(3,750)
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. The details of net changes in such accruals are
as follows:
$
84,694
OPEB asset decrease
(361,946)
863,575
Interest expense
(867,368)
(281,045)
Change in net position of governmental activities
$
25
50,121,397
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL - GENERAL FUND
Revenues
Property taxes
Intergovernmental - federal
Intergovernmental - state and local
Local option sales tax
Other
Charges for service
Revenue from use of monies
and property
Other
Total revenues
Expenditures
Current
General government
Budget, finance and revenue
collections
Procurement
Safety management
City Hall
116 Meeting Street
Gallery at Waterfront Park
R. M. Greenberg Municipal Building
50 Broad Street
City Council
Records management
Municipal court
Mayor's office
Internal audit
Corporation counsel
Prosecutors' office
Human resources
Information technology
Electrical
Facilities maintenance
GIS
Employee benefits
General insurance
Non-departmental
Total general government
Exhibit 7
Variance
with
Budget
Original
Budget
Final
Budget
Actual
$ 56,269,993
39,381,284
1,898,600
218,466
$ 56,269,993
39,381,284
1,898,600
218,466
$ 61,577,811
40,035,823
1,497,456
260,302
12,430,000
3,942,581
2,601,783
12,430,000
3,942,581
2,601,783
13,824,345
4,178,042
2,778,893
1,452,528
271,000
447,295
1,452,528
271,000
447,295
1,422,446
332,639
729,228
118,913,530
118,913,530
126,636,985
3,059,670
436,780
224,269
110,470
41,850
78,790
210,039
23,275
832,012
215,900
1,576,749
695,005
165,230
1,262,447
269,594
1,098,856
4,509,349
3,353,850
1,537,682
327,317
4,492,282
2,048,123
1,230,867
3,082,482
434,956
215,121
120,650
35,721
75,869
224,745
18,041
781,289
213,932
1,560,623
731,835
170,900
1,194,639
243,795
1,131,792
4,408,344
3,506,169
1,342,729
333,572
5,728,720
1,916,787
1,061,470
22,812
(1,824)
(9,148)
10,180
(6,129)
(2,921)
14,706
(5,234)
(50,723)
(1,968)
(16,126)
36,830
5,670
(67,808)
(25,799)
32,936
(101,005)
152,319
(194,953)
6,255
1,236,438
(131,336)
(169,397)
27,800,406
28,534,181
733,775
3,066,212
473,575
221,052
110,470
41,850
78,790
210,039
23,275
836,616
219,829
1,577,339
677,051
161,683
1,245,342
264,676
1,153,831
4,446,547
3,343,312
1,630,293
322,657
4,656,200
2,048,123
(683,519)
26,125,243
$
5,307,818
654,539
(401,144)
41,836
1,394,345
235,461
177,110
(30,082)
61,639
281,933
7,723,455
(Continued)
26
Expenditures (continued)
Current (continued)
Public safety
Police
Fire
Engineering
Inspections
Livability
Traffic and transportation
Total public safety
Public service
Public service administration
Streets and sidewalks
Sanitation
Fleet management
Total public service
Housing and community development
Planning and neighborhoods
Design, development and preservation
Civic design center
Total urban and community
development
Exhibit 7
Variance
with
Budget
Original
Budget
Final
Budget
Actual
$ 39,124,393
22,386,375
545,220
1,254,747
692,346
1,981,773
65,984,854
$ 39,807,458
21,973,629
365,857
1,120,173
629,586
1,941,023
65,837,726
$ 38,878,609
22,218,636
344,460
1,088,437
551,727
1,604,080
64,685,949
393,892
2,232,543
6,190,796
3,545,052
12,362,283
402,899
2,015,704
5,255,215
3,575,314
11,249,132
420,099
1,746,658
5,058,007
3,289,452
10,514,216
17,200
(269,046)
(197,208)
(285,862)
(734,916)
787,973
973,834
807,698
198,102
774,985
899,935
826,516
202,684
720,574
874,535
809,150
210,546
(54,411)
(25,400)
(17,366)
7,862
2,767,607
2,704,120
2,614,805
(89,315)
$
(928,849)
245,007
(21,397)
(31,736)
(77,859)
(336,943)
(1,151,777)
Cultural affairs
Recreation
Maritime Center
Dock Street Theatre
Parks
Construction
Parks and facilities capital
improvements
Total culture and recreation
579,531
6,058,570
603,744
301,407
6,638,391
717,559
588,476
6,001,597
614,146
265,313
6,076,582
671,700
551,244
5,992,721
649,473
263,841
5,926,027
648,675
(37,232)
(8,876)
35,327
(1,472)
(150,555)
(23,025)
64,585
14,963,787
64,585
14,282,399
39,598
14,071,579
(24,987)
(210,820)
Community promotion
Tourism
Programs
Total community promotion
483,435
143,215
626,650
490,193
143,215
633,408
510,712
150,959
661,671
20,519
7,744
28,263
Health and welfare
Public information
Children's services
Other assistance programs
Total health and welfare
140,451
161,579
234,200
536,230
143,792
163,906
230,200
537,898
143,537
126,211
230,200
499,948
(255)
(37,695)
(37,950)
(Continued)
27
Original
Budget
Expenditures (continued)
Current (continued)
Business development
Youth programs
Business services
Total business development
and assistance
$
590,636
109,681
267,588
Final
Budget
$
597,768
114,064
179,149
Variance
with
Budget
Actual
$
612,596
88,614
162,354
Exhibit 7
$
14,828
(25,450)
(16,795)
967,905
890,981
863,564
(27,417)
Debt service
Total debt service
4,652,428
1,140,695
5,793,123
4,652,428
1,140,695
5,793,123
4,576,710
1,119,623
5,696,333
(75,718)
(21,072)
(96,790)
Total expenditures
130,127,682
129,729,193
128,142,246
(1,586,947)
(11,214,152)
(10,815,663)
(1,505,261)
12,923,140
(3,048,988)
-
12,923,140
(4,010,370)
-
12,521,308
(4,073,450)
250,340
45,673
(401,832)
(63,080)
250,340
45,673
9,874,152
8,912,770
8,743,871
(168,899)
(1,340,000)
(1,902,893)
7,238,610
9,141,503
22,101,440
22,520,962
22,520,962
-
$ 20,761,440
$ 20,618,069
$ 29,759,572
Excess (deficiency) of revenues
over expenditures
Transfers in
Transfers out
Total other financing sources
(uses)
Fund balances
Beginning of year
End of year
28
9,310,402
$
9,141,503
Exhibit 8
PROPRIETARY FUNDS
DECEMBER 31, 2012
Assets
Current assets
Accounts receivable, net
Other receivables
Prepaid expenses and deposits
Enterprise Funds
Other
City
Enterprise
Market
Funds
Parking
Facilities
$
2,087,865
315,220
66,304
19,546
Total
$ 10,341,125
795,156
106,319
93,335
$ 1,088,054
156
78,073
$
13,517,044
795,312
421,539
66,304
190,954
Total current assets
11,335,935
1,166,283
2,488,935
14,991,153
Noncurrent assets
Capital assets
Land
Works of art
Buildings and improvements
Less accumulated depreciation
Net capital assets
Deferred costs
7,022,669
43,283
86,361,748
1,988,323
(17,067,491)
78,348,532
63,914
55,000
6,234,390
(606,385)
5,683,005
52,969
3,159,583
876,018
23,875,660
1,115,097
(9,877,583)
19,148,775
-
10,182,252
55,000
919,301
116,471,798
3,103,420
(27,551,459)
103,180,312
116,883
Total noncurrent assets
78,412,446
5,735,974
19,148,775
103,297,195
Total assets
89,748,381
6,902,257
21,637,710
118,288,348
Liabilities
Current liabilities
Accounts payable
Accrued salaries and related benefits
Accrued interest payable
General obligation bonds payable
Certificates of participation payable
Revenue bonds
Capital leases
Deposits
Unearned revenue
Due to other funds
336,187
28,364
235,535
2,598
700,000
549,845
1,117,283
58,363
8,285
-
192,090
89,558
237,267
47,503
-
244,843
38,370
31,053
56,574
90,337
4,625
1,600
794,534
773,120
66,734
325,093
33,651
700,000
549,845
1,354,550
56,574
148,700
60,413
1,600
794,534
Total current liabilities
3,036,460
566,418
1,261,936
4,864,814
(Continued)
29
Exhibit 8
PROPRIETARY FUNDS
DECEMBER 31, 2012
Liabilities (continued)
Long-term liabilities
General obligation bonds payable
Certificates of participation payable
Revenue bonds
Capital leases
Total liabilities
Net position
Unrestricted
Total net position
Enterprise Funds
Other
City
Enterprise
Market
Funds
Parking
Facilities
$ 15,992,142
1,134,496
5,089,833
21,782
22,238,253
25,274,713
$
4,762,655
4,762,655
5,329,073
$
53,538
53,469
107,007
1,368,943
53,764,933
10,708,735
683,083
890,101
19,073,299
1,195,468
$ 64,473,668
$ 1,573,184
$ 20,268,767
30
Total
$
15,992,142
1,134,496
9,852,488
53,538
75,251
27,107,915
31,972,729
73,521,315
12,794,304
$
86,315,619
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION
PROPRIETARY FUNDS
Parking
Facilities
Operating revenues
Sales and services
Revenues from use
of monies and property
Donations
Other
Total operating revenues
$
Operating expenses
Cost of sales and services
Personnel services
Utilities
Rent
Repairs and maintenance
Supplies
Other operating expenses
Depreciation and amortization
Total operating expenses
Operating income (loss)
Nonoperating revenues (expenses)
Investment income
Interest expense
Gain (loss) on disposition of assets
Total nonoperating revenues
(expenses)
Income (loss) before
contributions and transfers
Contributions and transfers
Capital contributions
Transfers in
Transfers out
Total contributions and transfers
Total net position
Beginning of year
End of year
Enterprise Funds
Other
City
Enterprise
Market
Funds
$
Total
19,241,713
$ 1,427,012
$ 2,313,327
$ 22,982,052
1,874
19,243,587
619,710
2,046,722
788,697
9,685
399
3,112,108
1,408,407
9,685
2,273
24,402,417
5,020,021
371,869
2,601,206
456,694
278,021
676,285
1,304,271
544,332
103,922
54,518
75,696
410,042
312,474
598,695
2,105,564
615,467
223,207
231,360
594,572
756,863
598,695
7,669,917
1,091,258
2,601,206
734,419
585,077
1,680,899
2,373,608
10,708,367
8,535,220
1,500,984
545,738
5,125,728
(2,013,620)
17,335,079
7,067,338
21,393
(785,607)
1,277
(273,601)
-
214
(8,982)
(3,368,875)
21,607
(1,068,190)
(3,367,598)
(762,937)
(273,601)
(3,377,643)
(4,414,181)
7,772,283
272,137
(5,391,263)
2,653,157
62,370
1,137,899
(4,205,215)
(3,004,946)
55,000
(148,500)
(93,500)
2,715,913
(270,438)
2,445,475
117,370
3,853,812
(4,624,153)
(652,971)
4,767,337
178,637
(2,945,788)
2,000,186
59,706,331
1,394,547
23,214,555
84,315,433
64,473,668
$ 1,573,184
$ 20,268,767
$ 86,315,619
31
Exhibit 9
Exhibit 10
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
Enterprise Funds
Other
City
Enterprise
Market
Funds
Parking
Facilities
Cash flows from operating activities
Cash received from customers and users
Cash paid to suppliers
Cash paid to employees
Net cash provided (used) by
operating activities
Cash flows from noncapital financing activities
Transfers to other funds
Transfers from other funds
noncapital financing activities
Cash flows from capital and
related financing activities
Proceeds from disposition of assets
Acquisition and construction of capital assets
Principal paid on debt
Interest paid
Net cash used by capital
and related financing activities
$ 18,752,486
(4,202,387)
(5,015,010)
$
2,047,823
(752,720)
(544,332)
$
3,048,357
(2,338,492)
(2,108,315)
Total
$ 23,848,666
(7,293,599)
(7,667,657)
9,535,089
750,771
(1,398,450)
8,887,410
(4,205,215)
1,137,899
(148,500)
-
(270,440)
2,715,913
(4,624,155)
3,853,812
(3,067,316)
(148,500)
2,445,473
1,277
(242,978)
(3,704,460)
(892,924)
(225,377)
(277,512)
4,763
(865,269)
(70,153)
(8,982)
6,040
(1,108,247)
(3,999,990)
(1,179,418)
(4,839,085)
(502,889)
(939,641)
(6,281,615)
Cash flows from investing activities
Interest on investments
Net cash provided by investing activities
(770,343)
21,393
21,393
-
214
214
21,607
21,607
Net increase in cash and cash equivalents
1,650,081
99,382
107,596
1,857,059
Beginning of year
8,691,044
988,672
1,980,269
11,659,985
2,087,865
$ 13,517,044
End of year
$ 10,341,125
$
1,088,054
$
(Continued)
32
Exhibit 10
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
Enterprise Funds
Other
City
Enterprise
Market
Funds
Parking
Facilities
Reconciliation of operating income (loss) to
net cash provided (used) by operating activities
$
Adjustments to reconcile operating income (loss)
to net cash provided (used) by operating activities
(Increase) decrease in current assets:
Accounts receivable
Other receivables
Prepaid expenses
Inventories
Increase (decrease) in current liabilities:
Accounts payable and accrued liabilities
Accrued compensated absences
Unearned revenue
Customer deposits
Total adjustments
Schedule of noncash investing, capital and
financing activities
Acquisition of capital assets
through contributions
Amortization of bond issue costs
Decrease in outstanding debt obligations due
to amortization or original issue discounts,
premiums and deferred refunding costs
Acquisition of capital assets
through capital leases
Transfer of capital assets from
governmental activities
8,535,220
$
1,304,271
545,738
Total
$ (2,013,620)
$
7,067,338
312,474
756,863
(388,327)
(102,774)
277,302
-
1,101
(78,073)
-
(63,544)
(4,704)
(4,284)
(387,226)
(166,318)
194,525
(4,284)
(98,587)
7,984
999,869
(30,469)
205,033
67,997
(27,927)
(207)
(109,024)
615,170
(61,059)
(19,943)
(207)
(109,024)
1,820,072
$
9,535,089
$
750,771
$
62,370
54,454
$
55,000
3,504
$ (1,398,450)
$
8,887,410
$
$
117,370
57,958
-
18,582
-
-
18,582
-
-
70,076
70,076
105,093
-
-
105,093
33
2,373,608
Exhibit 11
STATEMENT OF FIDUCIARY NET POSITION
FIDUCIARY FUND
DECEMBER 31, 2012
Agency
Fund
Assets
$
677,177
Liabilities
Accounts payable
$
677,177
34
NOTES TO FINANCIAL STATEMENTS
INDEX
Note
I.
A.
B.
C.
D.
E.
F.
G.
II.
A.
B.
C.
III.
A.
B.
C.
D.
E.
F.
G.
H.
I.
IV.
A.
B.
V.
Page
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Reporting Entity
Government-wide and Fund Financial Statements
Measurement Focus and Basis of Accounting
Assets, Liabilities and Net Position
Use of Estimates
Reclassifications
New Accounting Pronouncement
36
36-38
39-40
40-45
45
45
45
STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY
Budgets and Budgetary Accounting
Encumbrances
Deficit Fund Equity
45-46
46
46
DETAILED NOTES ON ALL FUNDS
Deposits and Investments
Receivables
Interfund Receivables and Payables
Notes and Mortgages Receivable
Deferred and Unearned Revenues
Interfund Transfers
Capital Assets
Long-Term Debt
Operating Leases
47-48
49
49
50
51
52
52-55
56-66
66
RETIREMENT AND DEFERRED COMPENSATION PLANS
Employees' Defined Benefit Plans
Deferred Compensation Plans
67
67
OTHER INFORMATION
A.
B.
C.
D.
E.
F.
Commitments, Contingencies and Litigation
Risk Management
Postemployment Benefits Other Than Pensions
Related Party
Pending Implementation of GASB Statements
Subsequent Events
35
68-69
69-70
70-72
72
73
73
I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. REPORTING ENTITY
The City of Charleston, South Carolina (the City), a political subdivision of the State of South Carolina,
was incorporated August 13, 1783. On September 21, 1976, the City issued a charter adopting the
Council-Mayor form of government. The City provides a full range of services to its citizens including
fire and police protection, sanitation, public improvements, parks, recreation, cultural, economic
development, planning, parking facilities, golf course, auditorium and general administration. The
City is a municipal corporation governed by an elected mayor and a twelve-member council.
As required by generally accepted accounting principles, these financial statements present the City
and its blended component unit. Blended component units, although legally separate entities, are
combined with data of the City if the governing body of the component unit is substantively the same
as that of the primary government or the component unit provides services entirely or almost entirely
to the primary government.
Blended Component Unit
City of Charleston Public Facilities Corporation (CCPFC) - This is a single purpose corporate entity
which has a leasehold interest in certain City facilities. Its Board is comprised of several employees
of the City. The Corporation issued $30,000,000 of financing during 1993, which was or is being
used to finance the construction of a parking garage, fire stations and other improvements. The
outstanding debt, $21,245,000, was refunded in 2003 using Certificates of Participation. See Note
III.H.2. The assets, debt and related accounts of the parking garage are reported in a proprietary
fund, which accounts for parking garage operations. All other assets, debts and activities are
reported in the governmental activities.
B. GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS
Government-wide Statements
The government-wide financial statements (i.e., the statement of net position and the statement of
activities) report information on all of the nonfiduciary activities of the City. For the most part, the
effect of interfund activity has been removed from these statements, but interfund services provided
and used are not eliminated in the process of consolidation. Governmental activities, which normally
are supported by taxes and intergovernmental revenues, are reported separately from business-type
activities, which rely to a significant extent on fees and charges for support.
The statement of activities demonstrates the degree to which the direct expenses of a given function
or segment are offset by program revenues. Direct expenses are those that are clearly identifiable
with a specific function or segment. Program revenues include 1) charges to customers or applicants
who purchase, use or directly benefit from goods, services or privileges provided by a given function
or segment, and 2) grants and contributions that are restricted to meeting the operational or capital
requirements of a particular function or segment. Taxes and other items not properly included
among program revenues are reported instead as general revenues.
36
I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
B. GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS (CONTINUED)
Separate financial statements are provided for governmental funds, proprietary funds and fiduciary
funds, even though the latter are excluded from the government-wide financial statements. Major
individual governmental funds and major individual proprietary funds are reported as separate
columns in the fund financial statements.
Fund Financial Statements
The City uses funds to maintain its financial records during the fiscal year. Fund accounting is
designed to demonstrate legal compliance and to aid management by segregating transactions
related to certain City functions or activities. A fund is defined as a fiscal and accounting entity with a
self-balancing set of accounts.
Major Funds
The City reports the following major governmental funds:
1. The General Fund is the City's primary operating fund. It accounts for all financial resources of
the general government, except those required to be accounted for in another fund.
2. The Capital Improvements Fund, a capital projects fund, accounts for various capital projects
primarily funded by various General Obligation Bonds, a portion of the Hospitality Fee, transfers
from the General Fund and Land Sales Fund and assets purchased under the City's lease
purchase program. Contributions have also funded acquisitions during the past two years.
3. The King Street Gateway TIF Fund, a capital projects fund, accounts for various capital projects
in the King Street Gateway Tax Increment Financing District, primarily funded by special
redevelopment bonds, property taxes, special assessments levied on property owners in the
district and transfers from the Land Sales Fund.
4. The Land Sales Fund, a special revenue fund, accounts for the purchase and sale of property and
the subsequent transfer of the proceeds from the sales to various capital projects funds.
5. The Drainage Fund, a capital projects fund, accounts for stormwater management and other
drainage infrastructure. Funding sources are primarily from tax revenues from the two mills
assessed on real and personal property, certain business licenses, transfers of stormwater utility
fees, federal grants, and stormwater revenue bonds issued in 2012.
37
B. GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS (CONTINUED)
The City reports the following major proprietary funds:
1. The Parking Facilities Fund accounts for the operation and maintenance of the on and off-street
parking lots and garages owned and/or operated by the City.
2. The City Market Fund accounts for the rental and maintenance of the Market Street public
market.
Nonmajor Funds
In addition, the City reports the following fund types:
The special revenue funds account for revenue sources that are restricted to expenditures for
specific purposes (not including expendable trusts or major capital projects) such as grants, other
special purpose fees, and economic development.
The capital projects funds account for the acquisition of capital assets or construction of major
capital projects not being financed by proprietary or nonexpendable trust funds.
The debt service funds account for the resources accumulated and payments made for principal and
interest on long-term debt governmental funds.
The enterprise funds are used to account for those operations that are financed and operated in a
manner similar to private business or where Council has decided that the determination of
revenues earned, costs incurred and/or net income is necessary for management accountability. All
of the City's proprietary funds are enterprise funds.
Fiduciary funds are used to account for assets held on behalf of others. Agency funds are custodial
in nature (assets equal liabilities) and do not involve measurement of results of operations.
The City reports the following fiduciary fund:
The Firemen's Insurance and Inspection Fund is an agency fund which accounts for the receipt and
disbursement of funds received from the State relating to the payment of one percent of the
premiums received from all insurance companies collecting fire insurance premiums on properties
within South Carolina.
38
C. MEASUREMENT FOCUS AND BASIS OF ACCOUNTING
"Measurement focus" is a term used to describe which transactions are recorded within the various
financial statements. "Basis of accounting" refers to when transactions are recorded, regardless of
the measurement focus applied.
The basic financial statements of the City have been prepared in conformity with generally accepted
accounting principles as applied to governmental agencies. The Governmental Accounting Standards
Board (GASB) is the accepted standard-setting body for establishing governmental accounting and
financial reporting principles.
Private-sector standards of accounting and financial reporting issued prior to December 1, 1989,
generally are followed in the government-wide and proprietary fund financial statements to the
extent that those standards do not conflict with or contradict guidance of the Governmental
Accounting Standards Board. Governments also have the option of following subsequent privatesector guidance for their business-type activities and enterprise funds, subject to this same limitation.
The City has elected not to follow subsequent private-sector guidance.
The government-wide financial statements are reported using the economic resources measurement
focus and the accrual basis of accounting, as are the proprietary 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, entitlements and donations are recognized as revenue as soon as all eligibility
requirements imposed by the provider have been met.
Governmental fund financial statements are reported using the current financial resources
measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon
as they are both measurable and available. Revenues are considered to be available when they are
collectible within the current period or soon enough thereafter to pay liabilities of the current period.
For this purpose, the City considers most revenues to be available if they are collected within 60 days
of the end of the current fiscal period; this period is extended to 120 days for grant reimbursements.
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. Capital asset acquisitions are
reported as expenditures in governmental funds. Proceeds of long-term debt and capital leases for
acquisitions are reported as other financing sources.
Agency funds, unlike all other types of funds, report only assets and liabilities, and therefore cannot
be said to have a measurement focus.
39
C. MEASUREMENT FOCUS AND BASIS OF ACCOUNTING (CONTINUED)
In applying the susceptible to accrual concept under the modified accrual basis, the following revenue
sources are deemed both measurable and available. This includes property taxes and special
assessments, investment earnings, fines and forfeitures, certain charges for services and state-levied
locally shared taxes. Sales, use and hospitality taxes are recorded when the underlying transaction is
made. When revenue from grants, entitlements and donations are received in advance, revenue
recognition is deferred until qualifying expenditures are made. Special assessments paid early are
deferred until they are legally due. Other revenues, including permits, licenses, some franchise fees
and miscellaneous revenues are recorded as revenue when received in cash because they are
generally not measurable until actually received.
Nonexchange transactions, in which the City receives value without directly giving equal value in
return, include property and franchise taxes, sales, use and hospitality taxes, special assessments,
fines and forfeitures, grants, entitlements and donations.
Amounts reported as program revenues in the government-wide financial statements include 1)
charges to customers or applicants for goods, services or privileges provided, 2) operating grants and
contributions, and 3) capital grants and contributions, including special assessments. Internally
dedicated resources are reported as general revenues rather than as program revenues. Likewise,
general revenues include all property taxes.
Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating
revenues and expenses generally result from providing goods and services in connection with a
proprietary fund's principal ongoing operations. The City's business-type activities accounted for in
proprietary funds are chiefly parking, facilities rental, tourism-related activities and concessions, and
operation of a municipal golf course. Operating expenses for proprietary funds include the cost of
sales and services, administrative expenses and depreciation on capital assets. All revenues and
expenses not meeting this definition are reported as nonoperating revenues and expenses.
D. ASSETS, LIABILITIES AND NET POSITION
1. Cash and Cash Equivalents and Deposits
The "deposits" classification is used only in the notes, not on the face of the statement of net
position, balance sheet or statement of cash flows. Deposits include only cash on hand, pooled
money market funds and certificates of deposit.
The City considers cash and cash equivalents for cash flow purposes to be currency on hand, demand
deposits with banks, amounts included in pooled cash and investment accounts, and liquid
investments with an original maturity of three months or less when purchased.
40
D. ASSETS, LIABILITIES AND NET POSITION (CONTINUED)
2. Inventories and Prepaid Items
The City's inventories are valued at cost, which approximates market, using the average cost method.
The consumption method of accounting is used to record inventories under which the cost of
inventory is recorded as an expenditure when consumed rather than when purchased. Certain
payments to vendors reflect costs applicable to future accounting periods and are recorded as
prepaid items.
3. Notes and Mortgage Receivables and Allowance for Loan Losses
Amounts loaned to others, which were funded by federal or state grants, are recorded as mortgages
receivable. Notes receivable, secured by property, are stated at unpaid principal balances net of an
allowance for loan losses. An allowance for loan losses is increased by charge-offs, net of recoveries.
Management's periodic evaluation of the adequacy of the allowance is based on past loan loss
experiences, known and inherent risks in the portfolio, adverse situations that may affect the
borrower's ability to repay the loan, estimated value of any underlying collateral and current
economic conditions. See also Note III.D.
4. Receivables
Transactions between funds that are representative of reimbursement arrangements outstanding at
the end of the fiscal year are referred to as "due to/from other funds." Any residual balances
outstanding between the governmental activities and business-type activities are reported in the
government-wide financial statements as "internal balances."
Taxes on real property and certain personal property attach as an enforceable lien on the property as
of January 1. Taxes are levied and billed the following September on all property other than vehicles
and are payable without penalty until January 16 of the following year. Penalties are assessed on
unpaid taxes on the following dates: January 17 - three percent, February 1 - an additional seven
percent, March 16 - an additional five percent. On March 16, unpaid property tax bills are turned
over to the delinquent tax office and the properties are subject to sale. Taxes on licensed motor
vehicles are levied during the month when the taxpayer's license registration is due for renewal. The
taxpayer must provide proof of payment to the South Carolina Department of Motor Vehicles before
that agency will renew the vehicle license.
41
Property taxes are assessed and collected by Charleston County and Berkeley County under joint
billing and collection agreements. The City recognizes property taxes in the period for which they are
levied and available for financing current expenditures. Property taxes receivable represent
delinquent real and personal taxes for the past ten years, less an allowance for amounts estimated to
be uncollectible, plus taxes levied on the assessed value of real and personal property, as of
January 1, 2012. All net property taxes receivable at year end, except those collected within 60 days,
are recorded as deferred revenue and thus not recognized as revenue until collected in the
governmental funds.
For additional information related to receivables, see Notes I.C., III.B., and III.D.
5. Restricted Assets
The City's restricted accounts are established to account for assets restricted for specific purposes,
typically by outside parties or legal agreement. Certain bond indentures require the establishment of
an account to hold 1) maximum annual principal and interest payments, unless a surety bond was
provided, and 2) the next succeeding principal and accrued interest payment.
6. Capital Assets
Capital assets, which include property, plant, equipment and infrastructure assets (e.g., drainage
systems, roads, bridges, sidewalks and similar items), are reported in the governmental activities in
the government-wide financial statements. Capital assets other than infrastructure are defined by
the government as assets with an initial, individual cost of more than $5,000 and an estimated useful
life in excess of one year. The City reports infrastructure assets on a network and subsystem basis.
Accordingly, the acquisition cost, construction cost or value of donated infrastructure assets is
capitalized and reported in the government-wide financial statements regardless of their amounts. In
the initial capitalization of such networks and subsystems the City chose to include all items with an
initial cost of $500,000 or greater. Donated capital assets are recorded at estimated fair market value
at the date of donation.
The costs of normal maintenance and repairs that do not add to the value of the asset or materially
extend assets’ lives are not capitalized. Major outlays for capital assets and improvements are
capitalized as projects are constructed.
Proprietary fund interest expense and amortization are capitalized for related construction in
progress. For tax-exempt debt, related interest costs subject to capitalization are netted against the
interest earned on invested proceeds until the construction phase of the project is completed. Net
interest expense and amortization are not capitalized in the governmental funds unless the assets are
anticipated to be transferred to the proprietary funds upon completion.
42
All reported capital assets except land and certain infrastructure assets are depreciated. Useful lives
for infrastructure were estimated based on the City's historical records of necessary improvements
and replacements. Depreciation is provided using the straight-line method over the following
estimated useful lives:
Infrastructure
15-100 years
20-80 years
3-20 years
7. Long-Term Obligations
In the government-wide financial statements and proprietary fund types in the fund financial
statements, long-term debt and other long-term obligations are reported as liabilities in the
applicable governmental activities, business-type activities or proprietary fund type statement of net
position. Bond premiums and discounts, and gains or losses on refunding and defeasance, are
deferred and amortized over the life of the bonds using the effective interest method. Bonds payable
are reported net of the applicable bond premium or discount. Bond issuance costs are reported as
deferred charges and amortized over the term of the related debt using the straight-line method.
In the fund financial statements, governmental fund types recognize bond premiums and discounts,
as well as bond issuance costs, during the current period. The face amount of debt issued is reported
as other financing sources. Premiums received on debt issuances are reported as other financing
sources while discounts on debt issuances are reported as other financing uses. Issuance costs,
whether or not withheld from the actual debt proceeds received, are reported as debt service
expenditures.
8. Claims and Judgments
All claims and judgments are accrued in the government-wide and proprietary fund financial
statements when it is both 1) probable that a liability has been incurred, and 2) the loss can be
reasonably estimated. The City records claims and judgments for governmental funds under the
modified accrual basis of accounting. This method provides that claims and judgments are reported
as fund expenditures and liabilities when due and payable.
9. Compensated Absences
It is the City's policy to allow employees to accumulate unused annual leave and compensatory hours.
If an employee has completed the probationary period, accumulated unused annual leave is payable
upon termination - no more than two times the number of annual leave days the employee is eligible
to earn due to the employee's years of service. Non-exempt employees can accumulate
compensatory hours for work over the regular work schedule. In no case may an employee accrue
more than 40 compensatory hours, which must be used before using annual leave.
All vacation and compensatory pay is accrued when incurred in the government-wide and proprietary
fund financial statements. A liability for these amounts is reported in governmental funds only to the
extent they have matured, for example, as a result of employee resignations and retirements.
43
10. Net Position and Fund Balances
Government-wide Statements
Equity is classified as net position and displayed in three components:
a. Net investment in capital assets - Consists of capital assets, net of accumulated depreciation and
reduced by the outstanding balances of any bonds, mortgages, notes or other borrowings that are
attributable to the acquisition, construction or improvement of those assets. If there are significant
unspent proceeds of capital related debt at year end, this component does not include the portion of
the debt attributable to those proceeds.
b. Restricted net position - Consists of net position with constraints placed on their use either by 1)
external groups such as creditors, grantors, contributors or laws or regulations of other governments;
or 2) law through constitutional provisions or enabling legislation.
c. Unrestricted net position – Consists of all other net position that does not meet the definition of
"net investment in capital assets" or "restricted."
Fund Statements
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. Restrictions are placed on fund balances when legally
enforceable legislation establishes the City’s right to assess, levy, or charge fees to be used for a
specific purpose. Legal enforceability means that the City can be compelled by an external party to
use resources created by enabling legislation only for the purposes specified by the legislation.
Committed fund balance has self-imposed limitations imposed at the highest level of decision making
authority. The City Council is the City’s highest level of decision making that can, by adoption of an
ordinance establish, modify or rescind a fund balance commitment. Committed amounts cannot be
used for any other purpose unless Council removes those constraints by taking the same type of
action. Amounts in the committed fund balance classification may be used for other purposes with
appropriate due process by the Council.
Assigned fund balance are amounts intended to be used by the City for specific purposes. City Council
delegates the authority to classify fund balance as “assigned” to the Mayor per the City’s financial
policy. Assigned fund balance includes all remaining amounts that are reported in governmental
funds (other than the General Fund) that are not classified as nonspendable, restricted, or committed
and amounts in the General Fund that are intended to be used for a specific purpose.
Unassigned fund balance in the General Fund equals the net resources in excess of what can be
properly classified in one of the above four categories.
44
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.
The City policy targets General Fund unassigned fund balance at a minimum of 15% of annual
budgeted expenditures.
E. USE OF ESTIMATES
The preparation of financial statements in conformity with generally accepted accounting principles
requires management to make estimates and assumptions. These estimates affect the reported
amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the
financial statements and revenues and expenditures/expenses during the reporting period. Actual
results could differ from those estimates.
F. RECLASSIFICATIONS
Certain items in the prior year have been reclassed to conform with current year presentation.
G. NEW ACCOUNTING PRONOUNCEMENT
GASB Statement No. 61, The Financial Reporting Entity: Omnibus-an Amendment of GASB Statements
No. 14 and No. 34, effective for periods beginning after June 15, 2012, improves financial reporting by
enhancing guidance for including, presenting, and disclosing information about component units and
equity interest transactions of a financial reporting entity. The City implemented the new
requirements in the current year.
GASB Statement No. 63, Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of
Resources and Net Position, effective for periods beginning after December 15, 2011, provides
financial reporting guidance for deferred outflows of resources and deferred inflows of resources.
The City implemented the new requirements in the current year.
II. STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY
A. BUDGETS AND BUDGETARY ACCOUNTING
Annual budgets are adopted on a basis consistent with generally accepted accounting principles for
the General Fund and the Municipal Accommodations Fee Fund. The budgets must be adopted at
public meetings by an ordinance that requires three readings by City Council with an interval of not
fewer than six days between first and second readings. Supplemental appropriations require the
same public hearing process that the original appropriation ordinance requires. Annual budgets are
also adopted for all enterprise funds, but are not required to be reported. Capital project funds
budgets are prepared on a project-length basis, with budgetary control achieved through the
approval of contracts in excess of $40,000 by Council. Other special revenue funds do not have
appropriated budgets since other means control the use of these resources (e.g., grant awards and
state statutes) and sometimes span a period of more than one fiscal year. Formal budgetary policies
are not employed for the debt service funds because effective budgetary control is alternatively
achieved through bond indenture provisions.
45
II. STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY (CONTINUED)
A. BUDGETS AND BUDGETARY ACCOUNTING (CONTINUED)
The General Fund appropriation ordinance for expenditures is prepared by function, department and
division, whereas the Municipal Accommodations Fee appropriation ordinance is prepared by project
or function. Expenditures may not legally exceed appropriations at the fund level. Management may
not amend the total appropriations in a budgeted fund without approval of Council. Budget transfers
are allowed within and between departments, provided that budget transfers in excess of $40,000
must be submitted to and approved by the Ways & Means Committee. However, management is also
authorized in emergency situations and for increased efficiency in the administration of government
to transfer funds from one department, division or administrative function to another without the
approval of Council.
While all appropriations and encumbrances lapse at year end, valid outstanding encumbrances (those
for which performance is expected within the next fiscal year) are re-appropriated and become part
of the subsequent year’s budget.
The changes between the General Fund original and final budget included management’s increases
and decreases within and between department and encumbrances carried over from the prior year
($562,893). There was no supplementary appropriation or budget amendment for the Municipal
Accommodations Fee Fund.
B. ENCUMBRANCES
Encumbrances are recorded in order to reserve that portion of the applicable appropriation and are
employed as an extension of formal budgetary integration in the General Fund. Encumbrances
outstanding at year end are reported as assigned fund balance since they do not constitute
expenditures or liabilities. Unencumbered amounts lapse at year end, while approved outstanding
encumbrances are re-appropriated as part of the following year's budget. At year end, General Fund
encumbrances were $1,196,946. No encumbrances were outstanding in other governmental funds.
C. DEFICIT FUND EQUITY
The following fund had a deficit fund balance at year end that is expected to be resolved as indicated:
Fund
Special Revenue Funds
Cultural Festivals and Events
Deficit
$ (44,043)
46
Resource for Elimination
Future revenues and/or transfers
from the General Fund
III. DETAILED NOTES ON ALL FUNDS
A. DEPOSITS AND INVESTMENTS
1. Custodial Credit Risk – Deposits
In the case of deposits, this is the risk that in the event of a bank failure, the City’s deposits may not
be returned to it. Deposits of the City are subject to South Carolina state statutes for custodial credit
risk. The statutes provide that banks accepting deposits of funds from local governmental units must
furnish an indemnity bond or pledge as collateral obligations of the United States, South Carolina, and
political subdivisions of South Carolina, the Federal National Mortgage Association (FNMA), the
Federal Home Loan Bank, the Federal Farm Credit Bank, or the Federal Home Loan Mortgage
Corporation (FLMC). In accordance with the aforementioned statute, the City's policies require
deposits to be secured by collateral valued at market or par, whichever is lower, less the amount of
the Federal Deposit Insurance Corporation (FDIC) Insurance. Deposited funds may be invested in
demand or time deposits, continuously and fully secured with direct obligations of or obligations
guaranteed by the United States of America having a market value not less than the amount of such
monies. As of December 31, 2012, all of the City’s deposits were covered by federal depository
insurance or by collateral held in the pledging financial institutions’ trust departments in the City’s
name.
2. Custodial Credit Risk – Investments
For an investment, 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 of an
outside party. The City does not have a formal investment policy to address custodial credit risk.
3. Interest Rate Risk
Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an
investment. Investments held for longer periods are subject to increased risk of adverse interest rate
changes. The City's policy follows state statutes concerning allowable investments, but does not
specifically address interest rate risk.
4. Credit Risk
Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its
obligations. The City has adopted investment policies in accordance with state statutes, which
authorize them to invest in the following:
1. Obligations of the United States and agencies thereof;
2. Obligations issued by the Federal Financing Bank, Federal Farm Credit Bank, the Bank of
Cooperatives, the Federal Intermediate Credit Bank, the Federal Land Banks, the Federal Home
Loan Banks, the Federal Home Loan Mortgage Corporation, the Federal National Mortgage
Association, the Government National Mortgage Association, the Federal Housing Administration,
and the Farmers Home Administration, if, at the time of investment, the obligor has a long-term,
unenhanced, unsecured debt rating in one of the top two ratings categories, without regard to a
refinement or gradation of rating category by numerical modifier or otherwise, issued by at least
two nationally recognized credit rating organizations;
47
III. DETAILED NOTES ON ALL FUNDS (CONTINUED)
A. DEPOSITS AND INVESTMENTS (CONTINUED)
3. General obligations of the State of South Carolina or any of its political units;
4. Savings and loan association deposits to the extent insured by the Federal Deposit Insurance
Corporation;
5. Certificates of deposit and repurchase agreements collateralized 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 certificates of deposit and repurchase agreements so secured,
including interest; and
6. No-load open and closed-end management type investment companies or investment trusts
registered under the Investment Company Act of 1940, as amended, where the investment is
made by a bank or trust company or savings and loan association or other financial institution
when acting as trustee or agent for a bond or other debt issue of that local government unit.
In addition, South Carolina state statutes authorize the City to invest in the South Carolina Local
Government Investment Pool (SCLGIP). The SCLGIP is an investment trust fund created by state
legislation, in which public monies under the custody of any political subdivision in excess of current
needs may be deposited. The SCLGIP is permitted to purchase obligations of the United States, its
agencies and instrumentalities, and any corporation within the United States if such obligations bear
any of the three highest ratings of at least two nationally recognized rating services. The SCLGIP is a
2a7-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
2a7 of the Investment Company Act of 1940.
See below for additional information regarding investment credit risk.
Fair value at
December 31, Percentage of
2012
Portfolio
$
152,048
0.10%
55,686,375
35.66%
100,317,018
64.24%
$ 156,155,441
100.00%
Commercial stocks
Local Government Investment Pool
Carrying value of cash in banks and on hand
Credit rating
N/A
N/A
A reconciliation of cash and cash equivalents and investments for the City as shown in the Statement of
Net Position is as follows:
Statement of Net Position
Investments
Temporarily restricted assets - cash and cash equivalents
Statement of Fiduciary Net Position
48
$
$
57,060,933
152,048
98,265,283
677,177
156,155,441
B. RECEIVABLES
Receivables as of year end for the City's individual major funds and nonmajor funds in the aggregate,
including the applicable allowances for uncollectible accounts, are as follows:
General
Capital
Improvements
King Street
Gateway TIF
Nonmajor
Land Sales
Drainage
Governmental
Funds
Receivables
Taxes
$ 31,114,630 $
Accounts
Other
13,534,725
Gross receivables 44,649,355
- $
1,300
1,300
7,807,203 $
7,807,203
- $
2,265,100
9,731
2,274,831
927,772 $
927,772
Less: allowance for
uncollectibles
Taxes
(2,211,922)
Accounts
Other
Net receivables $ 42,437,433 $
1,300 $
7,807,203 $
2,274,831 $
(63,620)
(1,068,336)
864,152 $ 5,402,065
Receivables
Taxes
Accounts
Other
Gross receivables
Less: allowance for uncollectibles
Taxes
Accounts
Other
Net receivables
Parking
Facilities
$
$
City
Market
2,404,631
3,347,638
718,132
6,470,401
Nonmajor
Enterprise
Funds
- $
795,156
106,319
901,475
- $
156
156
315,220
315,220
901,475 $
156 $
315,220
C. INTERFUND RECEIVABLES AND PAYABLES
The interfund receivables and payables at December 31, 2012, were as follows:
Receivable Fund
Major governmental funds
General
Land Sale
Nonmajor funds
Governmental
Proprietary
$
$
Payable Fund
805,325 $
8,187,912
7,384,243
-
8,993,237 $
814,460
794,534
8,993,237
Interfund balances largely result from the time lag between the dates that 1) interfund goods and
services are provided or reimbursable expenditures occur, 2) transactions are recorded in the
accounting system, and 3) payments between funds are made.
49
D. NOTES AND MORTGAGES RECEIVABLE
Notes receivable
In 1996 the City sold properties known as the Riviera Theater to Charleston Center,
LLC. The first five years of the seller-financed note secured by a mortgage required
monthly interest payments, and the remaining nineteen years require monthly
principal and interest payments.
$
1,944,615
In 2000 a developer agreed to reimburse the City for facilities added at the
developer's request to the Daniel Island Tennis Facilities. The note currently bears
interest at 4.5% and is payable in annual installments of principal and interest of
$37,954 for fifteen years.
104,334
In 2005 the City sold a parcel of land to the Charleston School of Law for a down
payment of $10,000 and a seller-financed note secured by a mortgage bearing
interest of the lesser of 5% or one point under prime rate, payable in full in 2017. See
Note III.E.
865,000
In 2007 the City issued a note to the Housing Authority of the City of Charleston (the
Authority) for the purpose of expanding its subsidized housing program. The City
issued a General Obligation Bond in the amount of $10,000,000 to fund the note. The
note is payable semi-annually, with interest rates between 4% and 5%, commencing in
September 2007. Principal payments are due annually in amounts from $200,000 to
$725,000, between 2010 and 2032. The proceeds from the note payments will service
the City's general obligation bond payments. See Note III.H.2.
9,375,000
Notes receivable - Fund Statements
Current portion of notes receivable - Statement of Net Position
Noncurrent portion of notes receivable - Statement of Net Position
Mortgages receivable
In its capacity as a subrecipient of a federally funded community development block
grant, the City issues mortgages to qualified low-income individuals for housing
purchases or renovations. At December 31, 2012, $1,935,430 of such mortgages were
outstanding, less an allowance for uncollectible balances of $309,728, for $1,625,702,
as reflected on the Statement of Net Position.
50
12,288,949
(452,867)
$ 11,836,082
E. DEFERRED AND UNEARNED REVENUES
Governmental funds report deferred revenue in the fund financial statement in connection with
receivables for revenues that are not considered to be available to liquidate liabilities of the current
period. Governmental funds also defer revenue recognition in connection with resources that have
been received, but not yet earned. At December 31, 2012, the various components of deferred and
unearned revenue reported were as follows:
Unavailable
Property taxes receivable
Installment note receivable
Interest on note
Property exchange with CCSD
State aid to subdivisions receivable
Franchise fees
Court fines
Grant revenue
Other
Total unavailable
Unearned
Contributions and grants recorded prior to meeting
all eligibility requirements
Cultural Festival entry fees
Total unearned
Total deferred revenues, governmental funds
Unearned rent revenue
Total unearned revenues, governmental activities
51
Fund
Statement
$
$
GovernmentWide
3,762,993
865,000
9,731
2,265,100
1,112,582
11,250,836
1,250,605
91,246
455,104
21,063,197
137,010
50,835
187,845
21,251,042
$
$
137,010
50,835
237,545
425,390
F. INTERFUND TRANSFERS
Interfund transfers for the year ended December 31, 2012, consisted of the following:
Transfers in
Major governmental funds
General
Capital improvements
King Street Gateway TIF
Land Sales
Drainage
Major proprietary funds
Parking facilities
City Market
Nonmajor funds
Governmental
Proprietary
$
Transfers out
12,521,308 $
12,739,399
3,820,495
1,137,899
-
$
4,073,450
759,989
4,812,106
1,014,446
4,205,215
148,500
5,627,047
2,715,913
38,562,061 $
23,277,917
270,438
38,562,061
Transfers are used 1) to move revenues from the fund that a statute or budget requires to collect them to the
fund that a statute or budget requires to expend them, and 2) to use unrestricted revenues collected in the
General Fund to finance various programs accounted for in other funds in accordance with budgetary
authorizations.
G. CAPITAL ASSETS
Capital asset activity for the year ended December 31, 2012, is as follows:
Capital assets not being depreciated
Land
Improvements
Works of art
Infrastructure
Total capital assets
not being depreciated
January 1,
2012
$
Capital assets being depreciated
Infrastructure
Total assets being depreciated
Accumulated depreciation
Infrastructure
Total accumulated depreciation
Total capital assets being
depreciated, net
capital assets, net
$
Decreases/
Transfers
Increases
75,838,679 $
6,857,564
334,250
55,436,263
38,559,534
December 31,
2012
3,745,766 $
3,028,066
33,813,841
- $
22,055,133
177,026,290
40,587,673
22,055,133
195,558,830
156,983,560
196,219,504
63,868,353
417,071,417
15,337,012
5,725,663
7,097,147
28,159,822
870,418
870,418
172,320,572
201,945,167
70,095,082
444,360,821
(31,971,274)
(32,905,656)
(49,488,817)
(114,365,747)
(3,186,032)
(3,306,854)
(4,541,020)
(11,033,906)
(801,432)
(801,432)
(35,157,306)
(36,212,510)
(53,228,405)
(124,598,221)
302,705,670
17,125,916
68,986
319,762,600
479,731,960
$
52
57,713,589
$
22,124,119
$
79,584,445
6,857,564
334,250
58,464,329
50,318,242
515,321,430
G. CAPITAL ASSETS (CONTINUED)
Capital assets not being depreciated
Land
Works of art
Total capital assets
not being depreciated
January 1,
2012
$
Capital assets being depreciated
Total assets being depreciated
Decreases /
Transfers
Increases
9,957,989 $
302,998
224,263 $
55,000
899,553
December 31,
2012
- $
283,250
10,182,252
55,000
919,301
10,260,987
1,178,816
283,250
11,156,553
121,727,223
2,814,082
124,541,305
315,751
246,235
561,986
5,571,176
(43,103)
5,528,073
116,471,798
3,103,420
119,575,218
(1,973,275)
(19,266)
(1,992,541)
(25,359,683)
(2,191,776)
(27,551,459)
3,535,532
92,023,759
Accumulated depreciation
(25,233,110)
(1,995,244)
Total accumulated depreciation
(27,228,354)
Total capital assets being
depreciated, net
97,312,951
capital assets, net
$ 107,573,938 $
(2,099,848)
(215,798)
(2,315,646)
(1,753,660)
(574,844) $
3,818,782 $ 103,180,312
Interest costs net of premiums incurred by business-type activities in the year ended December 31,
2012 totaled $1,068,190. Of that amount, $-0- was capitalized. During the year ended December 31,
2012, capital assets with a cost of $105,093 and accumulated depreciation of $62,370 were
transferred from the City’s governmental activities to business-type activities.
Depreciation expense was charged to functions of the City as follows:
General government
Public safety
Public service
Community promotion
Health and welfare
Total governmental activities depreciation
J.P. Riley, Jr. Baseball Park
Parking Facilities
City Market
Slave Mart Museum
Total business-type activities depreciation
53
$
5,767,985
3,201,131
866,888
14,230
1,105,103
769
17,769
60,031
$
11,033,906
$
558,038
94,394
1,249,814
308,969
83,271
4,000
17,160
$
2,315,646
During the year ended December 31, 2012, the Gaillard Municipal Auditorium was disposed of for a
loss of $3,370,701.
The City's construction in progress at year end was comprised of the following:
Parks and Public Service Projects:
White Point Gazebo
Cainhoy Fire Station
Angel Oak Improvements
Avondale Park
Harmon Ballfield
Ashley Riverwalk
Daniel Island Boat Ramp
Charlotte Street Park
Seawall Maintenance
Mall Park Playground Courts
Concord Street Park
CRB Area Development
Daniel Island Tennis Center Courts
Stoney Field
Colonial Lake
Meeting St Gazebo
Fire Station # 9
Fire Station Improvements
Waterfront Water Taxi
Gaillard Center Arts Precinct
Tiedman Park
Northbridge Park
Maybank Tennis
Historic Fire Bay
Maryville Pier
ARRA Solar Water Heater
Gaillard Auditorium Renovation
Municipal Building
WA Circle Development
WA Greenway Intersection
Total Parks & Public Service Projects – balance carried forward
54
$
621,984
29,330
19,612
302,250
44,152
7,500
115,649
1,912,180
403,006
32,272
433,095
598,487
14,750
53,007
160,843
52,572
2,272,822
12,367
37,149
335,560
1,967
91,443
883,782
6,614
33,844
108,400
23,652,715
3,957,920
29,884
428,553
36,653,709
Balance brought forward $
Gateway TIF Projects:
Camden Tower Cultural Center
Spring/Cannon Streetscape
Beaufain Streetscape
Beaufain/Memminger
Coming Street Improvements
Total Gateway TIF Projects
36,653,709
284,233
627,146
111,034
17,562
52,800
1,092,775
Charleston Neck TIF Projects:
Milford Street Improvements
Total Charleston Neck TIF Projects
372,596
372,596
Drainage Fund Projects:
Market Street
Forest Acres
Spring Street
Church Creek
Bennett / Gadsden Drainage
Total Drainage Projects
4,963,400
444,728
6,543,232
227,718
8,800
12,187,878
Land Sales Fund Projects:
West Ashley Circle
Total Land Sales Projects
11,284
11,284
Total construction in progress-governmental activities
JP Riley, Jr. Baseball Park
Playing Field Renovation
Entrance & Fairway Improvements
Parking Facilities
Gaillard Garage Renovation
Midtown Parking Garage A&E
Total construction in progress- business-type activities
55
$
50,318,242
$
853,295
22,723
$
35,550
7,733
919,301
H. LONG-TERM DEBT
The City has the following forms of long-term indebtedness:
General Obligation Bonds - The City issues general obligation bonds to provide funds for the
acquisition and construction of major capital facilities. General obligation bonds have been issued for
both governmental fund and proprietary fund activities. These bonds are reported in the proprietary
funds if they are expected to be repaid from proprietary fund revenues. The primary sources of
revenue for repayment of bonds reported in the governmental activities are property taxes and
proceeds from the payment on a note receivable. Parking fees are the primary sources for payment
of general obligation bonds reported in the business-type (enterprise) funds. General obligation
bonds are direct obligations and pledge the full faith and credit of the City.
Special Redevelopment Bonds - These bonds are financing the construction of Waterfront Park and
redevelopment of the King Street Gateway and the Charleston Neck districts. Proceeds from the
incremental increase in the tax base related to these properties, as well as parking fees generated by
garages located in the district, will be used to repay the debt.
Revenue Bonds - The City's revenue bonds were used to finance construction, renovation and
purchase of real estate. Revenue bonds have been issued for both governmental and proprietary
fund activities. The 1997 revenue bonds are reported in the proprietary funds since they are
expected to be repaid from revenues, primarily parking fees, which are generated by proprietary fund
activities. The 2000 revenue bonds are secured by both State of South Carolina accommodations
taxes and City hotel accommodations taxes. The 2010 revenue bonds are also secured by both State
and City accommodation taxes, as well as operating revenues of the City Market. The 2012 revenue
bonds are secured by the net revenues of the Stormwater system.
Certificates of Participation (COPs) - The COPs were issued by the City of Charleston Public Facilities
Corporation, a nonprofit corporation whose principal purpose is to facilitate the financing of public
capital projects. The corporation issued certificates of participation with the proceeds being used to
defray the costs of certain capital improvements, including construction of a ballpark, construction of
a parking garage, renovation and expansion of the existing City police station, acquisition of land for
fire stations, as well as construction of such stations, and other various capital expenditures.
The City leases certain of the assets acquired with the proceeds from the certificates under a master
lease purchase agreement. For financial reporting purposes the City accounts for the certificates as
its own debt. Approximately 72.5% and 27.5% of the COPs were accounted for in the governmental
activities and business-type Parking Facilities Fund, respectively. The COPs reported in the
governmental activities are repayable from property taxes and business licenses. The COPs reported
in the business-type (enterprise) funds are repayable from parking garage revenues reported in the
Parking Facilities Fund.
Notes Payable - These obligations represent the notes payable that are not general obligations of the
City. Repayment is budgeted in the General Fund, Housing and Urban Development Special Revenue
Fund and the Other Special Revenue Fund.
56
H. LONG-TERM DEBT (CONTINUED)
Capital Lease Obligations - The City uses notes and leases to finance the purchase of various
equipment. Repayment is budgeted in the General Fund, the Stormwater Utility Special Revenue
Fund, and the Municipal Golf Course Proprietary Fund.
Intergovernmental Agreement - The City has entered into an agreement with Charleston County to
contribute towards the cost of a new digital public safety radio system acquired by the County.
Payments will be made annually over a 4 year period and will be funded by the General Fund. Under
the agreement the City will make payments of $375,207 per year through 2013.
Claims and Judgments Payable - These include obligations for workers' compensation, health and
dental insurance, probable litigation, liabilities and other obligations. General Fund revenues not
appropriated for other payments are used to fund these obligations. See Note V.B.
Compensated Absences Payable - These obligations represent accumulated annual leave and
compensatory time benefits which were not funded by the current or prior years' revenue resources.
These obligations are primarily funded by the General Fund.
1. Changes in Long-Term Liabilities
Long-term liability activity for the year ended December 31, 2012 is as follows:
Bonds
General obligation
Plus deferred amounts
For issuance premiums
Total general obligation
January 1,
2012
Additions
$ 39,937,522 $
December 31,
2012
Due within
one year
- $ 2,877,522 $ 37,060,000 $
2,100,000
-
15,010
2,892,532
48,543
37,108,543
2,100,000
46,725,000
2,705,727
525,000
15,121,726
48,275,000
14,305,726
525,000
5,138,601
51,863,601
-
525,000
1,366,470
5,138,601
53,413,601
4,478,985
525,000
1,435,155
-
28,962
(46,612)
44,920
(72,354)
-
63,553
40,001,075
Special redevelopment
17,827,453
Revenue
2,075,000
Plus deferred amounts
Total revenue
2,075,000
Certificates of Participation
5,845,455
Plus (less) deferred amounts
73,882
On refunding
(118,967)
Total Certificates of
Participation
5,800,370
Notes
16,405,128
Capital leases
3,799,577
8,338,021
750,414
5,813,025
$ 100,810,063 $
Reductions
1,348,820
4,451,551
1,435,155
1,649,577
14,755,551
989,135
5,736,823
2,746,413
6,789,987
2,665,573
16,708,147 16,947,796
8,098,372
4,534,851
375,207
375,207
375,207
5,248,658
5,334,747
5,726,936
4,984,963
79,557,229 $ 34,525,819 $ 145,841,474 $ 31,915,610
57
January 1,
2012
Bonds
General obligation
$ 18,392,460 $
452,944
On refunding
(4,966)
Total general obligation
18,840,438
December 31,
Reductions
2012
Additions
Due within
one year
- $ 2,092,460 $ 16,300,000 $
700,000
-
60,802
(4,966)
2,148,296
392,142
16,692,142
700,000
12,520,917
-
1,313,880
11,207,037
1,354,550
2,239,545
-
523,530
1,716,015
549,845
28,319
(80,392)
-
11,095
(31,494)
17,224
(48,898)
-
2,187,472
-
503,131
1,684,341
549,845
Capital leases
110,189
70,076
70,152
110,113
56,574
243,894
165,530
185,473
223,951
148,700
Revenue
On refunding
Total Certificates of
Participation
$ 33,902,910 $
235,606 $ 4,220,932 $ 29,917,584 $ 2,809,669
58
2. Bonds Payable
There are a number of limitations and restrictions contained in the various bond indentures.
Management believes the City is in compliance with all significant limitations and restrictions.
The following is a summary of each long-term bond obligation of the City at December 31, 2012:
Year
Issued
Primary
Use of Funds
Interest
Rates and
Payment Dates
Annual
Principal
Payments
Maturity
Original
Issue
Outstanding
at 12/31/12
General Obligation Bonds
2005
City Hall, Recreation
and Public Safety
Facilities
3.5% - 5.5%
2/1 and 8/1
$505,000 to
$845,000
2006 to
2020
2007
Affordable Housing
(See Note III.D.)
4% - 5%
3/1 and 9/1
$200,000 to
$725,000
2010 to
2032
10,000,000
9,375,000
2010
Property Acquisition
for Capital Project
2.0% - 2.1%
3/1 and 9/1
$100,000 to
$700,000
2012 to
2016
1,900,000
1,800,000
2010
Parks and Capital
Projects
2.875% to 4.0%
3/1 and 9/1
$1,100,000 to
$2,750,000
2017 to
2025
17,100,000
17,100,000
2011
Refunding of 1996,
2.01%
1998, and 2001 bonds 1/1 and 7/1
$850,000 to
$2,630,000
2011 to
2015
5,705,484
2,950,000
80,440
48,543
44,465,924
37,108,543
Plus (less) deferred amounts for issuance premiums
Total General Obligation Bonds
59
$ 9,680,000 $ 5,835,000
Year
Issued
Primary
Use of Funds
Interest
Rates and
Payment Dates
Annual
Principal
Payments
Maturity
Original
Issue
Outstanding
at 12/31/12
Special Redevelopment Bonds
2002
Refunding King
Street Gateway
4.75%
2/1 and 8/1
$1,239,407 to
$1,432,726
2003 to
2013
2005
Refunding
Waterfront Park
4.90%
2/1 and 8/1
$270,000 to
$273,000
2006 to
2016
3,000,000
1,089,000
2011
Charleston Neck
Redevelopment
2.20%
1/15 and 7/15
$1,000,000 to
$12,600,000
2012 to
2013
13,600,000
12,600,000
32,166,668
15,121,726
Total Special Redevelopment Bonds
$ 15,566,668 $ 1,432,726
Revenue Bonds
2000
Daniel Island
Tennis Center
4.50%
3/1 and 9/1
$500,000 to
$1,000,000
2001 to
2015
8,800,000
1,550,000
2012
Revenue Bond
Stormwater/Drainage
3.0% - 5.0%
1/1 and 7/1
$1,345,000 to
$3,420,000
2014 to
2033
46,725,000
46,725,000
5,138,601
5,138,601
60,663,601
53,413,601
15,360,135
4,478,985
Total Revenue Bonds
2003
Refunding of 1993
Certificate of
Participation
3.0% - 5.0%
3/1 and 9/1
$307,275 to
$1,550,835
Plus (less) deferred amounts for refunding costs
2003 to
2015
570,375
(917,986)
Total Certificates of Participation
15,012,524
44,920
(72,354)
4,451,551
$152,308,717 $110,095,421
Total Bonds and Certificates of Participation
60
The following is a summary of each long-term bond obligation of the business-type activities of the
City at December 31, 2012:
Year
Issued
Interest
Rates and
Payment Dates
Primary
Use of Funds
Annual
Principal
Payments
Maturity
Original
Issue
Outstanding
at 12/31/12
General Obligation Bonds
2009
Purchase of
Parking garage
2.0% - 4.0%
3/1 and 9/1
$550,000 to
$2,800,000
2010 to
2023
Plus (less) deferred amounts on defeasance
$18,100,000 $16,300,000
594,298
-
Total General Obligation Bonds
392,142
-
18,694,298 16,692,142
Revenue Bonds
1997
Parking Garage
Construction
6.95% for 5 yrs
LIBOR +1 after
monthly
$314,300 to
$1,209,470
2000 to
2018
16,493,220
6,207,115
2010
City Market
Renovation
6.20%
3/1 and 9/1
$20,442 to
$171,662
2010 to
2030
2,100,000
1,961,565
2010
City Market
Renovation
4.84%
3/1 and 9/1
$164,580 to
$306,466
2011 to
2025
3,400,000
3,038,357
Total Revenue Bonds
21,993,220 11,207,037
2003
Refunding of 1993
Certificate of
3.0% - 5.0%
$117,725 to
Participation
3/1 and 9/1
$594,165
Plus (less) deferred amounts for refunding costs
Total Certificates of Participation
2003 to
2015
5,884,865 1,716,015
218,525
17,224
(620,338)
(48,898)
5,483,052
Total Bonds and Certificates of Participation
61
1,684,341
$46,170,570 $29,583,520
3. Notes Payable
Notes payable from governmental activities at December 31, 2012 are as follows:
Description
In 2007, the City renewed and increased a financing agreement bearing
interest at 5.45%, secured by a lien on building improvements. The
agreement requires quarterly payments of $388,146 in 2009 and quarterly
payments thereafter, ranging from $248,673 to $297,455. This agreement
was refinanced in March 2013 to obtain an interest rate of 1.79%. The
agreement still matures in 2023.
Outstanding
at 12/31/12
$
9,859,184
In 2008, the City entered into a financing agreement bearing interest of
4.690%, secured by a lien on building improvements. The agreement required
quarterly payments of $77,266 beginning in 2010 and maturing in 2024. This
agreement was refinanced in February 2013 to obtain an interest rate of
1.79%. Quarterly payments of $67,435 begin in 2013 and mature in 2024.
2,836,355
In 2008, the City obtained a mortgage note in the amount of $1,415,860,
bearing interest of 4.5% and subject to annual rate adjustment (1.5% below
NY prime), with the minimum not below 4.5% and not to exceed 6.5%. The
note was payable in monthly installments of $8,957 and based on a 20 year
amortization with a balloon payment due in March 2013. The note was
extended and then refinanced in May 2013 in the amount of $1,171,541,
bearing interest of 3.75%. The note is payable in monthly payments of $8,524,
based on a 10 year amortization with a balloon payment due in June 2018.
1,184,514
In 2006, the City entered into a financing agreement bearing interest at 6%,
collateralized by real property. The agreement was refinanced in 2010
reducing the interest rate to 3.8% and extending the term effective February
2011. Payments remain at $11,000 with a balloon payment due March 2016
in the amount of $545,540.
875,498
$
Total notes payable
62
14,755,551
4. Capital Leases Payable
The City has entered into several capital lease agreements with payment terms varying from 36 to 48
months and interest rates varying from 1.12% to 2.59%, secured by various vehicles, computer
hardware and other equipment.
Equipment
Carrying value
$
$
17,748,689
(8,202,087)
9,546,602
Amortization expense for equipment under capital leases is included in depreciation expense.
The remaining lease payments as of December 31, 2012 are as follows:
Year Ending
2013
2014
2015
2016
Total minimum lease payments
Less amount representing interest
Present value of capital lease
payments
$
$
Amount
2,749,354
2,116,368
1,491,919
584,496
6,942,137
(152,150)
6,789,987
Total interest paid on assets under capital leases for the year ended December 31, 2012, was
$103,073.
The City has entered into three capital lease agreements with payment terms of 37 to 49 months and
interest rates varying from 5.482% to 7.964%. At year end the carrying values of assets acquired
through capital leases are as follows:
Equipment
Carrying value
$
$
63
98,925
(29,454)
69,471
Amortization expense for equipment under capital leases is included in depreciation expense.
Remaining lease payments as of December 31, 2012 are as follows:
Year Ending
2013
2014
2015
2016
Total minimum lease payments
Less amount representing interest
Present value of capital lease
payments
$
$
Amount
61,390
26,246
21,956
8,748
118,340
(8,227)
110,113
Total interest paid on assets under capital leases for the year ended December 31, 2012, was $8,982.
64
5. Debt Service Requirements to Maturity
At December 31, 2012, future debt service requirements for bonds, including Certificates of
Participation, were as follows:
Year
Ending
2013
2014
2015
2016
2017
2018-2022
2023-2027
2028-2032
2033-2036
Subtotal
Less net
discount/
premium &
deferred
refunding
costs
Total
General Obligation
Principal
Interest
Revenue
Principal
Interest
Certificates of
Participation
Principal
Interest
$ 2,100,000 $ 1,329,483 $14,305,726 $
2,100,000 1,266,997
273,000
2,530,000 1,204,213
273,000
1,710,000 1,133,193
270,000
2,165,000 1,077,625
12,930,000 4,062,738
10,150,000 1,605,766
3,375,000
367,609
37,060,000 12,047,624 15,121,726
378,980 $
525,000 $ 2,133,033
37,177
1,870,000 2,022,675
23,614
1,950,000 1,949,875
10,069
1,575,000 1,866,875
1,710,000 1,801,175
9,815,000 7,656,000
- 12,370,000 5,111,875
- 15,040,000 2,328,900
3,420,000
61,988
449,840 48,275,000 24,932,396
48,543
$ 37,108,543 $12,047,624 $15,121,726 $
5,138,601
(27,435)
449,840 $ 53,413,601 $24,932,396 $4,451,550 $ 409,472
Year
Ending
Bonds
Special Redevelopment
Principal
Interest
General Obligation
Principal
Interest
2013
$
700,000 $
588,500
2014
750,000
566,750
2015
800,000
543,500
2016
850,000
518,750
2017
900,000
490,250
2018-2022
9,500,000
1,626,250
2023-2027
2,800,000
56,000
2028-2032
Subtotal
16,300,000
4,390,000
Less net
discount/
premium &
deferred
refunding
costs
392,142
Total
$ 16,692,142 $ 4,390,000
Bonds
Certificates of
Participation
Principal
Interest
Revenue
Principal
Interest
$
1,354,549 $ 372,120
1,388,570
337,338
1,422,938
302,970
1,458,406
267,502
1,495,021
230,887
2,112,595
809,528
1,551,959
327,221
422,999
40,140
11,207,037
2,687,706
$ 11,207,037 $ 2,687,706
65
$1,435,155 $ 194,668
1,492,995 137,262
1,550,835
77,542
4,478,985 409,472
$
549,845 $ 74,582
572,005
52,588
594,165
29,708
1,716,015
156,878
(31,674)
$ 1,684,341 $ 156,878
At December 31, 2012, future debt service requirements for governmental activities notes payable
are as follows:
Year Ending
2013
2014
2015
2016
2017
2018-2022
2023-2024
Total
$
$
Principal
989,135
1,279,309
1,216,084
1,704,384
1,165,285
6,970,194
1,431,160
14,755,551
$
$
Interest
370,727
275,909
251,212
211,541
184,384
451,442
22,647
1,767,862
6. Legal Debt Limit
The City's borrowing power is restricted by the State Constitution. This constitution provides that a
local unit cannot at any time have total debt outstanding in an amount that exceeds 8 percent of its
assessed property value. Excluded from the limitation are: special revenue bonds; bonded
indebtedness approved by the voters and issued within five years of the date of such referendum;
special bonded indebtedness levies assessed on properties located in an area receiving special
benefits from the taxes collected; and bonded indebtedness existing on December 1, 1977, the
effective date of amendment of Article X of the Constitution of South Carolina pertaining to bonded
debt. The City's legal debt margin at December 31, 2012, was $35,934,471.
I.
OPERATING LEASES
The City is committed under various noncancelable operating leases for office space, parking lots and
certain equipment. Operating lease expenditures for the year ended December 31, 2012, were
approximately $3.1 million. Future minimum lease payments for these leases are as follows:
Year ending
December 31,
2013
2014
2015
2016
2017
2018-2022
2023-2027
2028-2032
2033-2037
2038-2042
Total
$
$
66
Amount
2,709,269
2,612,732
2,419,034
1,834,254
1,640,823
7,102,213
5,403,540
158,455
142,579
5,712
24,028,611
IV. RETIREMENT AND DEFERRED COMPENSATION PLANS
A. EMPLOYEES' DEFINED BENEFIT PLANS
South Carolina Retirement and Police Officers' Retirement Systems
Plan Description. The City contributes to both the South Carolina Retirement System (SCRS) and to
the South Carolina Police Officers' Retirement System (SCPORS), which are cost-sharing multipleemployer defined benefit pension plans administered by the Retirement Division of the State Budget
and Control Board. Both the South Carolina Retirement System and Police Officers' Retirement
System offer retirement and disability benefits, cost of living adjustments on an ad-hoc basis, life
insurance benefits and survivor benefits. The Plan's provisions are established under Title 9 of the SC
Code of Laws. A Comprehensive Annual Financial Report containing financial statements and
required supplementary information for the South Carolina Retirement System and Police Officers'
Retirement System is issued and publicly available by writing the South Carolina Retirement Systems,
P.O. Box 11960, Columbia, SC 29211-1960.
Funding Policy. SCRS Plan members are required to contribute 7.0% of their annual covered salary
and the City is required to contribute at an actuarially determined rate. The current rate is 10.45% of
annual covered payroll. The City's contributions to SCRS for the years ended December 31, 2012,
2011, and 2010, were $3,298,723, $3,089,192, and $3,042,790, respectively, equal to the required
contributions for each year. Additionally, participating employers of the SCRS contribute .15% of
payroll to provide a group life insurance benefit for their participants.
SCPORS Plan members are required to contribute 7.5% of their annual covered salary, and the City is
required to contribute at an actuarially determined rate. The current rate is 11.9% of annual covered
payroll. The City's contributions to SCPORS for the years ended December 31, 2012, 2011, and 2010
were $4,073,515, $3,819,076, and $3,617,370, respectively, equal to the required contributions for
each year. Additionally, participating employers of the SCPORS contribute .4% of payroll to provide
group life insurance and accidental death benefits for their participants.
B. DEFERRED COMPENSATION PLANS
Internal Revenue Code Section 457 Plan
The City offers its employees a deferred compensation plan, offered through the State of South
Carolina, created in accordance with Internal Revenue Code Section 457. The plan, available to all
regular employees, permits participants to defer a portion of their salaries until future years. The
deferred compensation is not available to the employee or his beneficiaries until termination,
retirement, death, disability or an approved hardship.
All amounts of compensation deferred under the plan are held in trust for the contributing employee
and are not subject to claims of the employer's general creditors. The plan is administered by the
State of South Carolina.
Internal Revenue Code Section 401(k) Plan
The City also offers its employees participation in a deferred compensation plan, offered through the
State of South Carolina, created in accordance with Internal Revenue Code Section 401(k). The 401(k)
plan has the same eligibility requirements as the 457 plan, although the withdrawal provisions are
more lenient under the 401 (k). All amounts of compensation deferred under the plan are held in
trust for the contributing employee and are not subject to claims of the employer's general creditors.
The funds are administered by the State of South Carolina.
67
V. OTHER INFORMATION
A. COMMITMENTS, CONTINGENCIES AND LITIGATION
Commitments
The City had various contractual commitments of approximately $27.3 million at December 31, 2012
for construction, drainage, streetscape and various parks and recreational projects.
1. Marine Science Museum - A marine science museum, commonly referred to as the South Carolina
Aquarium, was officially opened to public visitation on May 19, 2000. The land on which the
Aquarium was constructed is leased from the National Parks Service through 2045 rent-free. The
building was constructed by and is owned by the City.
A separate South Carolina Aquarium Corporation (SCA), a not-for-profit corporation, has been
formed, which does not qualify as a component unit of the City. During 1997 the City entered into an
agreement with the SCA whereby the SCA will lease the Aquarium from the City without cost through
July 2045. This lease is expected to be extended for an additional 50 years. The SCA will be
responsible for all operations and related costs, and construction and funding of interior exhibits. SCA
will pay to the City 50% of any remaining cash flow after operating expenses, debt service,
depreciation reserve provisions and a cumulative $2 million operating shortfall reserve. No funds
were received by the City in 2012.
2. Charleston Maritime Center and PRC Agreement - During 1995 the City entered into a master
lease with the Charleston County Park and Recreation Commission (PRC). In 1997, a revised
agreement was established which provides that, in the event the City desires to sell the Center within
fifty years, the City grants a right of first refusal to PRC, at the offered price less $1,500,000. If PRC
declines its right to purchase, $1,500,000 shall be paid to PRC from the proceeds. If the City elects to
lease the special events pier in a manner to deny public use within the fifty years, the City shall pay
PRC the $1,500,000 plus interest. The City's intention is to retain and operate the Maritime Center
within the terms of the Agreement and in a manner to avoid the return of PRC's contribution of
$1,500,000. Accordingly, the potential obligation to repay the contribution, or possible impairment of
the asset value, has not been recorded, as it is unlikely that such events will occur.
3. Daniel Island - The City has entered into an agreement with The Daniel Island Company, Inc. and
related entities, whereby the parties commit to certain planned development of Daniel Island. The
City has committed to the establishment of various public safety, public service, recreation and other
governmental services, including the development of several parks and the building of certain
municipal facilities.
Contingencies and Litigation
1. Grants - Amounts received or receivable from grantor agencies in previous years are subject to
audit and adjustment by grantor agencies. Any disallowed claims, including amounts already
collected, could become a liability of the General Fund or other applicable funds. The amount, if any,
of expenditures which may be disallowed by the grantor cannot be determined at this time although
the government expects such amounts, if any, to be immaterial.
68
V. OTHER INFORMATION (CONTINUED)
A. COMMITMENTS, CONTINGENCIES AND LITIGATION (CONTINUED)
2. Litigation - The City is contingently liable with respect to lawsuits and other claims incidental to
the ordinary course of their operations. In the opinion of management, based on the advice of legal
counsel with respect to litigation, the ultimate disposition of these lawsuits and claims will not
materially affect the City's financial position.
3. Unemployment Compensation - The City makes payments to the South Carolina Employment
Security Commission on a reimbursement basis for costs incurred in the administration of the state
unemployment compensation statutes. Claims incurred but not reported at December 31, 2012, are
not significant.
B. RISK MANAGEMENT
The City establishes liabilities for claims and judgments based on estimates of the ultimate cost of
claims (including future claim adjustment expenses) that have been reported but not settled, and of
claims that have been incurred but not reported. The length of time for which such costs must be
estimated varies depending on the coverage involved. Estimated amounts of salvage, subrogation
and reinsurance recoverable on unpaid claims are deducted from the liability for unpaid claims.
Because actual claim costs depend on such complex factors as inflation, changes in doctrines of legal
liability and damage awards, the process used in computing claim liabilities does not necessarily result
in an exact amount, particularly for coverage such as general liability. Adjustments to claim liabilities
are charged or credited to expense in the period in which they are made.
1. Health and Dental Insurance - The City is self-insured for medical, dental and prescription
coverage within certain individual employee limits and an aggregate limit of $15,626,281 for all
medical and pharmacy payments in 2012 plus claims incurred during 2012 and subsequently paid.
Health claims are handled by an administrator and the stop-loss provision is incurred as of December
31, 2012. The incurred but not reported (IBNR) claims are estimated by the City's management.
2. Workers' Compensation Insurance - The City self-insures workers' compensation and general
liability programs. The City accounts for the workers' compensation program in the General Fund to
the extent of available financial resources. Claims liability in excess of available financial resources is
recorded in the Statement of Net Position. The specific stop-loss and aggregate retention provisions
for workers' compensation are $1,000,000 and $6,808,034, respectively.
3. Other Claims and Judgments - The City is exposed to various other risks of loss and maintains
coverage with the South Carolina Insurance Reserve Fund (SCIRF), a self-sustaining, public entity risk
pool, for certain property damage, tort and general liability, for which premiums are paid. Additional
funding is provided by Federal Emergency Management Agency (FEMA) in the case of certain
disasters.
69
B. RISK MANAGEMENT (CONTINUED)
Property and casualty coverage policies are accounted for in the General Fund, as well as other
insurance policies, such as surety bond coverage and miscellaneous floaters. Funds are expended
based on premium amounts and administrative charges. The City had no significant reductions in
insurance coverage during the year. The limits of liability for tort actions not specifically exempt by
the South Carolina Government Tort Claims Act are $600,000 per occurrence. For those risks covered
by insurance, claims did not exceed coverage during the past three years.
Changes in the balance of liabilities for claims and judgments (see also
two years were as follows:
Beginning
Claims and
Of Year
Changes in
Year
Liability
Estimates
Health and Dental
2012
$ 1,200,000 $ 13,622,326 $
Insurance
2011
1,200,000
15,209,229
Workers' Compensation
2012
6,990,002
3,080,672
Insurance
2011
6,748,282
3,362,779
Other Claims and
2012
148,019
5,149
Judgments
2011
149,784
5,375
Total Claims and
2012
8,338,021
16,708,147
Judgments
2011
8,098,066
18,577,383
Note III.H.1) during the last
Claims
End of Year
Paid
Liability
(13,522,326) $ 1,300,000
(15,209,229)
1,200,000
(3,418,330)
6,652,344
(3,121,059)
6,990,002
(7,140)
146,028
(7,140)
148,019
(16,947,796)
8,098,372
(18,337,428)
8,338,021
C. POSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS
1. Plan Description
The City's defined benefit postemployment healthcare plan (the Plan) provides medical and dental
insurance to eligible retirees under the Medicare eligible age of 65. Employees become eligible when
the employee qualifies for retirement benefits under the SCRS or PORS and has 15 years of service
with the City. Information regarding SCRS and PORS eligibility may be obtained from the
Comprehensive Annual Financial Report of the Plan. See Note IV.A. The Plan is approved each year
by City Council; the contribution requirements of the City and plan members are established and
amended by Council. These contributions are neither guaranteed nor mandatory. Council has
retained the right to unilaterally modify its payments toward retiree health care benefits.
As of January 1, 2013, the measurement date for the plan year 2012, there were 1,540 covered
participants; 155 members are retirees receiving benefits and 1,385 are active participants.
The Plan is affiliated with the South Carolina Other Retirement Benefits Employer Trust (SC ORBET),
an agent multiple-employer irrevocable trust administered by the Municipal Association of South
Carolina. Each participating employer is responsible for determining the appropriate amount of
contributions to remit to the Trust. SC ORBET issues a publicly available financial report that includes
audited financial statements and required supplementary information for the Plan. A copy of the
report may be obtained by writing to: Chief Financial Officer for Risk Management Services, Municipal
Association of South Carolina, P.O. Box 12109, Columbia, South Carolina 29211.
70
C. POSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS (CONTINUED)
2. Funding Policy
The City contributes a fixed dollar amount indexed each year by the Consumer Price Index (CPI). In
2012, the City contributed, on a monthly basis $363 for retiree-only healthcare coverage and $798 for
retiree family healthcare coverage. For the healthcare plan, the retiree contributes the balance
between the actuarially calculated costs less the fixed dollar amount. The retiree pays 100% of the
actuarially calculated dental costs. The health and dental plans pay a percentage of allowed charges
after the plan's deductible. For 2012, the retiree healthcare contribution was $205.
The City's annual other postemployment benefits (OPEB) cost (expense) is calculated based on the
annual required contribution (ARC) of the employer, an amount actuarially determined in accordance
with the parameters of GASB Statement No. 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 current ARC rate is based
on a level percent of payroll increasing annually at 3.5%.
3. Annual OPEB Cost and Funded Status and Funding Progress
The following table shows the components of the City's annual required contribution for 2012.
Normal cost
30 year amortization of unfunded accrued liability (UAL)
Total Annual Required Contribution
$
$
977,000
1,052,000
2,029,000
The following table shows the components of the City's annual OPEB cost for the year, the amount
actually contributed to the plan, and changes in the City's net OPEB obligation.
Annual required contribution (ARC)
Interest on prior year obligation
Adjustment to the ARC
Administrative fees
Annual OPEB cost (expense)
Contributions made (82% of annual cost)
Increase in OPEB obligation
Net OPEB obligation (asset) - beginning of year
Net OPEB obligation (asset) - end of year
$
$
2,029,000
719
(559)
26,882
2,056,042
(1,694,096)
361,946
(399,025)
(37,079)
Contributions included $400,000 paid by the City to the Plan to pre-fund benefits and $1,294,096
made by the City through payment of covered participants' explicit and implicit subsidized benefits.
The City's annual OPEB cost, the percentage of annual OPEB cost contributed to the Plan and the net
OPEB (obligation) asset for 2012, 2011, 2010, and 2009 were as follows:
Fiscal
Year
Ended
12/31/2009
12/31/2010
12/31/2011
12/31/2012
$
Annual
OPEB Cost
2,564,132
2,627,707
2,046,090
2,056,042
Percentage of
Annual OPEB
Cost Contributed
95%
105%
120%
82%
71
Net OPEB
(Obligation)
Asset
$ (153,838)
(1,602)
399,025
37,079
C. POSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS (CONTINUED)
At December 31, 2012, the actuarial accrued liability for benefits (AAL) was $32,873,325, with
$9,080,200 in Plan assets, resulting in an unfunded actuarial accrued liability (UAAL) of $23,793,125.
The funded ratio (actuarial value of plan assets/AAL) was 28 percent. The covered payroll (annual
payroll of active employees covered by the plan) was $61.5 million, and the ratio of the UAAL to the
covered payroll was 39 percent.
Actuarial valuations of an ongoing plan 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 expectations and
new estimates are made about the future. The schedule of funding progress, presented as required
supplementary information following the notes to the financial statements, presents multiyear trend
information that shows whether the actuarial value of plan assets is increasing or decreasing over
time relative to the actuarial accrued liabilities for benefits.
4.
Actuarial Methods and Assumptions
Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as
understood by the employer and the 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. The actuarial methods and assumptions used include techniques
that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the
actuarial value of assets, consistent with the long-term perspective of the calculations.
The City uses the Projected Unit Credit Actuarial Cost Method. The actuarial assumptions included a
6.5% investment rate of return (net of administrative expenses) and an initial annual healthcare cost
trend rate of 8%. The trend rate will decrease in 0.5% steps until it reaches 5% after seven years.
Both rates included a 4% inflation assumption. The asset valuation method used is market value. The
ORBET trust's actuarial consultants intend to use a smoothing method over a 5 year period with the
assumed investment rate of return. The Plan's UAAL is being amortized as a level percentage of
projected payroll on a closed basis. The remaining amortization period at December 31, 2012, was 24
years.
D. RELATED PARTY
Commissioners of Public Works of the City of Charleston, SC (CPW), also known as Charleston Water
Systems, provides water and wastewater services to the citizens of the City and certain surrounding
areas, generally excluding the larger municipalities. CPW is dependent on the City for substantial
approval for all bond issuances and provides financial benefit to the City in the form of a subsidy in
lieu of taxes.
During the year ended December 31, 2012, CPW contributed $1,095,000 to the City. The City reports
the payment as revenue from state and local governments, while CPW reports it as an
intergovernmental fee expense.
72
E. PENDING IMPLEMENTATION OF GASB STATEMENTS
The GASB has issued the following statement:
GASB Statement No. 65, Reporting Items Previously Recognized as Assets and Liabilities, effective for
periods ending after December 15, 2012, provides financial reporting guidance related to properly
classify certain items previously reported as assets and liabilities as deferred outflows of resources
and deferred inflows of resources.
F. SUBSEQUENT EVENTS
Subsequent to December 31, 2012, the following material transactions occurred:
• In April 2013 the City entered into lease purchase agreements in the amount of $1,647,795 and
$4,099,846, bearing interest at .84% and .89%, respectively; the proceeds are to be used for the
purchase of vehicles and equipment.
• In May 2013 the City issued Special Obligation Redevelopment Bonds in the amount of
$32,000,000, bearing interest at 2.02%.
• In February 2013 the City refinanced a financing agreement in the amount of $2,852,614 relating to
energy conservation equipment. The new agreement bears interest at 1.79%.
• In March 2013 the City refinanced a financing agreement in the amount of $9,797,208 relating to
energy conservation equipment. The new agreement bears interest at 1.79%.
• In May 2013 the City refinanced a mortgage note payable in the amount of $1,171,541. The new
note bears interest at 3.75%.
73
REQUIRED SUPPLEMENTARY
FINANCIAL INFORMATION
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF FUNDING PROGRESS AND EMPLOYER CONTRIBUTIONS - OTHER
POSTEMPLOYMENT BENEFITS - DEFINED BENEFIT HEALTH CARE PLAN
(UNAUDITED)
SCHEDULE OF EMPLOYER CONTRIBUTIONS
Fiscal Year Ended
2008
2009
2010
2011
2012
Annual Required
Contribution
(ARC)
$
Percentage of
ARC Contributed
3,040,000
2,586,000
2,586,000
2,029,000
2,029,000
97%
94%
107%
121%
83%
SCHEDULE OF FUNDING PROGRESS
Year
Ended
Actuarial
Valuation
Date
2008
2009
2010
2011
2012
1/1/2009
1/1/2009
1/1/2011
1/1/2011
1/1/2013
Actuarial
Value
of Assets
$
3,986,151
5,209,576
6,944,630
8,414,461
9,080,200
Actuarial
Accrued Liability
(AAL)
$
30,877,000
30,877,000
28,603,000
28,603,000
32,873,325
Unfunded AAL
(UAAL)
$
74
26,890,849
25,667,424
21,658,370
20,188,539
23,793,125
Funded
Ratio
13%
17%
24%
29%
28%
Covered
Payroll
$
47,800,000
47,800,000
47,800,000
47,800,000
61,500,000
UAAL as a
Percentage of
Covered Payroll
56%
54%
45%
42%
39%
SUPPLEMENTARY FINANCIAL INFORMATION
Combining and Individual Fund Financial Statements
Exhibit A
SCHEDULE OF EXPENDITURES - BUDGET TO ACTUAL - GENERAL FUND
Final
Budget
General Government
Budget, finance and revenue collections
Budget and finance administration
Personnel
Fringe benefits
Operating
Total
$
Finance
Personnel
Fringe benefits
Operating
Total
524,790
142,461
28,656
695,907
Actual
$
526,422
132,924
16,028
675,374
789,475
257,065
139,008
1,185,548
802,460
267,472
118,292
1,188,224
Revenue collections
Personnel
Fringe benefits
Operating
Total
362,036
127,178
61,140
550,354
373,146
128,436
74,795
576,377
Budget and management
Personnel
Fringe benefits
Operating
Total
277,462
83,478
13,360
374,300
284,875
87,283
11,393
383,551
Process/service improvement
Personnel
Fringe benefits
Operating
Total
133,827
43,523
76,211
253,561
136,044
44,901
78,011
258,956
3,059,670
3,082,482
Procurement
Personnel
Fringe benefits
Operating
Total
201,406
73,736
161,638
436,780
203,524
73,433
157,999
434,956
Safety management
Personnel
Fringe benefits
Operating
Total
106,214
32,518
85,537
224,269
107,284
34,353
73,484
215,121
City Hall
Operating
Total
110,470
110,470
120,650
120,650
Total - budget, finance and revenue collections
75
(Continued)
SCHEDULE OF EXPENDITURES - BUDGET TO ACTUAL - GENERAL FUND (CONTINUED)
Final
Budget
General Government, Continued
116 Meeting Street
Operating
Total
$
Gallery at Waterfront Park
Operating
Total
41,850
41,850
Exhibit A
Actual
$
35,721
35,721
78,790
78,790
75,869
75,869
210,039
210,039
224,745
224,745
23,275
23,275
18,041
18,041
City Council
Personnel
Fringe benefits
Operating
Total
493,762
229,732
108,518
832,012
501,558
185,650
94,081
781,289
Records management
Personnel
Fringe benefits
Operating
Total
68,652
26,761
120,487
215,900
73,075
24,012
116,845
213,932
Municipal court
Personnel
Fringe benefits
Operating
Total
929,802
367,769
279,178
1,576,749
940,397
346,562
273,664
1,560,623
Mayor's office
Personnel
Fringe benefits
Operating
Total
540,828
137,427
16,750
695,005
565,820
135,071
30,944
731,835
Internal audit
Personnel
Fringe benefits
Operating
Total
114,540
34,065
16,625
165,230
119,740
37,251
13,909
170,900
R. M. Greenberg Municipal Building
Operating
Total
50 Broad Street
Operating
Total
76
(Continued)
Final
Budget
Corporation counsel
Personnel
Fringe benefits
Operating
Total
$
477,440
143,564
641,443
1,262,447
Exhibit A
Actual
$
549,279
148,371
496,989
1,194,639
Prosecutor's office
Personnel
Fringe benefits
Operating
Total
144,378
56,514
68,702
269,594
137,644
34,859
71,292
243,795
Human resources
Human resources
Personnel
Fringe benefits
Operating
Total
654,494
213,457
192,513
1,060,464
683,471
190,946
219,078
1,093,495
Mailroom
Personnel
Fringe benefits
Operating
Total
19,955
10,397
8,040
38,392
20,340
10,901
7,056
38,297
1,098,856
1,131,792
859,123
268,485
2,000,681
148,945
3,277,234
873,286
279,460
1,921,159
114,432
3,188,337
Telecommunications
Personnel
Fringe benefits
Operating
Total
140,139
52,811
765,089
958,039
136,208
45,523
785,344
967,075
32 Ann Street
Operating
Total
274,076
274,076
252,932
252,932
4,509,349
4,408,344
484,105
161,527
2,708,218
3,353,850
485,923
158,622
2,861,624
3,506,169
Total - human resources
Personnel
Fringe benefits
Operating
Capital
Total
Total - information technology
Electrical
Personnel
Fringe benefits
Operating
Total
77
(Continued)
Final
Budget
Facilities maintenance
Personnel
Fringe benefits
Operating
Total
GIS
$
429,746
180,438
927,498
1,537,682
Exhibit A
Actual
$
397,505
155,348
789,876
1,342,729
Personnel
Fringe benefits
Operating
Capital Outlay
Total
213,263
65,186
48,868
327,317
214,527
63,725
43,025
12,295
333,572
Employee benefits
Fringe benefits
Operating
Total
4,474,782
17,500
4,492,282
5,719,996
8,724
5,728,720
General insurance
Operating
Total
2,048,123
2,048,123
1,916,787
1,916,787
70,000
70,000
-
Non-departmental
Emergency fund
Operating
Total
Non-departmental
Personnel
Fringe benefits
Operating
Capital
Total
(160,289)
65,000
1,256,156
1,160,867
82,301
979,169
1,061,470
Total - non-departmental
1,230,867
1,061,470
Total general government
27,800,406
28,534,181
25,106,389
8,542,083
4,553,736
286,360
54,023
38,542,591
24,909,271
8,426,184
4,275,787
129,685
143,495
37,884,422
Public safety
Police
Personnel
Fringe benefits
Operating
Capital
Transfers out
Total
78
(Continued)
Final
Budget
Public safety, Continued
Police radio shop
Personnel
Fringe benefits
Operating
Total
$
178,074
58,492
813,700
1,050,266
Exhibit A
Actual
$
168,767
58,346
774,982
1,002,095
Weed and seed (non-grant)
Operating
Total
110,020
110,020
10,594
10,594
Victim Assistance Program
Personnel
Fringe benefits
Operating
Total
113,373
40,356
4,875
158,604
72,535
35,693
16,765
124,993
Less: reclassification from operating to transfers out
Total - police
(54,023)
39,807,458
(143,495)
38,878,609
13,535,149
4,511,679
2,459,774
152,284
836,636
21,495,522
13,795,371
4,607,145
2,499,406
122,937
908,128
21,932,987
Fire department training
Personnel
Fringe benefits
Operating
Capital
Total
386,030
116,299
386,732
48,968
938,029
390,290
119,275
175,900
48,968
734,433
Fire Marshal's office
Personnel
Fringe benefits
Operating
Total
276,854
83,315
16,545
376,714
286,262
108,069
65,013
459,344
Fire
Fire
Personnel
Fringe benefits
Operating
Capital
Transfers out
Total
Total - Fire
(836,636)
21,973,629
Engineering
Personnel
Fringe benefits
Operating
Total
235,781
107,376
22,700
365,857
79
(908,128)
22,218,636
237,683
86,126
20,651
344,460
(Continued)
Final
Budget
Public safety, Continued
Inspections
Personnel
Fringe benefits
Operating
Total
$
Livability
Personnel
Fringe benefits
Operating
Total
772,746
285,422
62,005
1,120,173
Exhibit A
Actual
$
771,261
266,592
50,584
1,088,437
354,080
161,726
113,780
629,586
354,507
145,165
52,055
551,727
Traffic and transportation
Personnel
Fringe benefits
Operating
Total
748,345
311,487
881,191
1,941,023
758,029
272,550
573,501
1,604,080
Total public safety
65,837,726
64,685,949
301,064
81,880
19,955
402,899
300,680
78,180
41,239
420,099
172,739
57,787
504,062
734,588
170,768
58,820
399,482
629,070
708,196
342,670
230,250
1,281,116
679,248
268,447
169,893
1,117,588
2,015,704
1,746,658
272,139
105,377
229,116
606,632
274,035
95,046
219,995
589,076
1,282,469
643,118
609,930
2,535,517
1,371,074
530,487
665,062
2,566,623
Public service
Public service administration
Personnel
Fringe benefits
Operating
Total
Streets and sidewalks administration
Personnel
Fringe benefits
Operating
Total
Personnel
Fringe benefits
Operating
Total
Total - streets & sidewalks
Sanitation
Environmental services administration
Personnel
Fringe benefits
Operating
Total
Garbage collection
Personnel
Fringe benefits
Operating
Total
80
(Continued)
Final
Budget
Public service, Continued
Sanitation, continued
Trash collection
Personnel
Fringe benefits
Operating
Total
$
Street sweeping
Personnel
Fringe benefits
Operating
Total
Total - sanitation
Fleet management
Personnel
Fringe benefits
Operating
Capital
Total
Total public service
Housing and community development
Personnel
Fringe benefits
Operating
Total
Planning
Planning, preservation and sustainability administration
Personnel
Fringe benefits
Operating
Total
Planning and sustainability
Personnel
Fringe benefits
Operating
Total
Total - planning
Design and preservation
Personnel
Fringe benefits
Operating
Capital outlay
Total
81
1,025,226
460,530
3,500
1,489,256
Exhibit A
Actual
$
1,035,986
381,377
3,181
1,420,544
317,368
242,598
63,844
623,810
273,535
132,223
76,006
481,764
5,255,215
5,058,007
673,350
259,718
2,620,946
21,300
3,575,314
644,496
249,393
2,395,563
3,289,452
11,249,132
10,514,216
543,237
182,993
48,755
774,985
511,895
166,685
41,994
720,574
297,574
138,510
85,065
521,149
308,039
118,370
76,907
503,316
232,015
97,791
48,980
378,786
231,554
91,151
48,514
371,219
899,935
874,535
584,146
189,965
37,280
15,125
826,516
578,770
181,344
33,911
15,125
809,150
(Continued)
Final
Budget
Urban and community development, Continued
Civic design center
Personnel
Fringe benefits
Operating
Total
$
Total urban and community development
132,475
36,883
33,326
202,684
Exhibit A
Actual
$
148,287
38,321
23,938
210,546
2,704,120
2,614,805
315,216
103,241
170,019
588,476
327,004
91,410
132,830
551,244
195,003
69,403
76,920
341,326
191,189
62,887
84,207
338,283
Recreation athletics
Personnel
Fringe benefits
Total
528,345
154,680
683,025
521,802
145,773
667,575
Youth sports
Operating
Total
332,410
332,410
411,701
411,701
Adult sports
Operating
Total
76,540
76,540
60,026
60,026
500,202
113,809
191,621
805,632
468,379
104,908
154,189
727,476
5,925
5,925
4,843
4,843
Operating
11,665
17,966
Total
11,665
17,966
Cultural affairs
Personnel
Fringe benefits
Operating
Total
Recreation
Recreation administration
Personnel
Fringe benefits
Operating
Total
Recreation programs
Personnel
Fringe benefits
Operating
Total
Environmental programs
Operating
Total
Playground programs
82
(Continued)
Final
Budget
Recreation, Continued
Community programs
Operating
$
Total
Exhibit A
Actual
28,010
$
22,238
28,010
22,238
76,237
20,034
2,120
98,391
99,482
21,676
2,357
123,515
James Island Recreation Center
Personnel
Fringe benefits
Operating
Total
232,425
70,855
120,651
423,931
194,695
68,545
159,412
422,652
St. Julian Devine
Personnel
Fringe benefits
Operating
Total
114,346
40,742
38,198
193,286
113,814
29,459
30,771
174,044
Bees Landing Recreation Center
Personnel
Fringe benefits
Operating
Total
291,465
75,879
165,377
532,721
258,649
73,219
182,960
514,828
Arthur Christopher Community Center
Personnel
Fringe benefits
Operating
Total
193,060
59,466
132,995
385,521
172,399
55,249
88,837
316,485
Recreation facilities
Personnel
Fringe benefits
Operating
Total
Shaw Community Center
Personnel
Fringe benefits
Operating
Total
-
36,436
8,242
14,557
59,235
West Ashley Park
Operating
Total
39,665
39,665
36,694
36,694
Daniel Island programs
Operating
Total
61,260
61,260
30,072
30,072
653,965
199,681
229,365
1,083,011
728,076
192,230
222,585
1,142,891
Aquatics
Personnel
Fringe benefits
Operating
Total
83
(Continued)
Final
Budget
Recreation, Continued
WL Stephens Pool
Operating
Total
$
Exhibit A
Actual
1,000
1,000
$
1,432
1,432
MLK Pool
Operating
Total
750
750
1,051
1,051
Herbert Hasell Pool
Operating
Total
200
200
51
51
James Island Pool
Operating
Total
750
750
267
267
29,350
29,350
22,655
22,655
Tennis
Personnel
Fringe benefits
Total
408,344
107,001
515,345
390,318
107,361
497,679
Charleston Tennis Center
Operating
Total
101,066
101,066
140,663
140,663
Maybank Tennis Center
Operating
Total
20,861
20,861
19,909
19,909
Inner City Youth Tennis
Operating
Total
1,925
1,925
1,443
1,443
166,024
49,757
215,781
173,328
52,190
225,518
12,250
12,250
11,529
11,529
6,001,597
5,992,721
176,273
81,649
356,224
614,146
176,698
86,313
386,462
649,473
Swim Team
Operating
Total
Gymnastics
Personnel
Fringe benefits
Total
Gymnastics training center
Operating
Total
Total - recreation
Maritime Center
Personnel
Fringe benefits
Operating
Total
84
(Continued)
Final
Budget
Dock Street Theatre
Personnel
Fringe benefits
Operating
Total
$
Parks
Capital projects
Personnel
Fringe benefits
Operating
Total
91,955
38,702
134,656
265,313
Exhibit A
Actual
$
90,451
37,907
135,483
263,841
428,474
130,512
263,331
822,317
429,315
127,889
262,215
819,419
457,962
159,099
166,241
783,302
513,609
179,472
157,176
850,257
1,587,148
738,090
1,089,408
25,000
3,439,646
1,568,534
606,425
1,102,082
27,099
3,304,140
Urban forestry
Personnel
Fringe benefits
Operating
Total
351,270
163,423
24,025
538,718
344,721
126,024
16,227
486,972
Horticulture
Personnel
Fringe benefits
Operating
Capital
Total
286,071
126,567
72,461
7,500
492,599
299,528
110,511
47,700
7,500
465,239
Subtotal - parks
6,076,582
5,926,027
Construction
Personnel
Fringe benefits
Operating
Total
421,075
163,098
87,527
671,700
415,634
141,049
91,992
648,675
64,585
64,585
39,598
39,598
14,282,399
14,071,579
Parks administration
Personnel
Fringe benefits
Operating
Total
Grounds maintenance
Personnel
Fringe benefits
Operating
Capital
Total
Parks maintenance projects
Operating
Total
Total culture and recreation
85
(Continued)
Final
Budget
Community promotion
Tourism
Tourism
Personnel
Fringe benefits
Operating
Total
$
Tourism gatekeeper system
Personnel
Fringe benefits
Operating
Total
165,780
57,604
192,553
415,937
Exhibit A
Actual
$
167,448
59,016
212,097
438,561
54,422
16,244
3,590
74,256
52,163
16,514
3,474
72,151
490,193
510,712
143,215
143,215
150,959
150,959
633,408
661,671
Health and welfare
Public information
Personnel
Fringe benefits
Operating
Total
107,648
32,854
3,290
143,792
108,724
33,916
897
143,537
Children's services
Personnel
Fringe benefits
Operating
Transfer out
Total
116,268
30,733
16,905
163,906
90,524
26,574
9,113
2,500
128,711
163,906
(2,500)
126,211
230,200
230,200
230,200
230,200
537,898
499,948
193,006
56,007
348,755
597,768
213,652
54,360
344,584
612,596
Total - tourism
Operating
Total
Total community promotion
Total
Assistance programs
Operating
Total
Total health and welfare
Business development
Personnel
Fringe benefits
Operating
Total
86
(Continued)
Final
Budget
Business development and assistance, Continued
Youth programs
Personnel
Fringe benefits
Operating
Transfers out
Total
$
Total
86,651
17,672
9,741
114,064
114,064
Business services
Personnel
Fringe benefits
Operating
Total
Exhibit A
Actual
$
68,633
13,489
6,492
989
89,603
(989)
88,614
121,390
55,479
2,280
179,149
123,203
36,586
2,565
162,354
890,981
863,564
2,779,102
2,682,312
Bond, GO 2001 $13.45M GF
Operating
170,410
170,410
Bond, GO 2005 $9.68M
Operating
843,225
843,225
Bond, GO 2010 Series A $1.9M
Operating
139,300
139,300
Bond, GO 2010 Series B $17.1M
Operating
624,188
624,188
Bond, GO Ref 2011 $6.555M GF
Operating
1,104,898
1,104,898
132,000
132,000
5,793,123
5,696,333
129,729,193
$ 128,142,246
Total business development and assistance
Debt service
Capital leases
Operating
Note, 50 Broad Street
Operating
Total debt service
Total expenditures
$
87
NONMAJOR GOVERNMENTAL FUNDS
SPECIAL REVENUE FUNDS
These funds are used to account for the proceeds of specific revenue sources (other than expendable trusts
or major capital projects) that are restricted (legally or by Mayor and Council) to finance particular
functions or activities.
Accommodations Tax Fund accounts for the City's share of the two percent statewide tax on lodging
allocated from the State of South Carolina for promotion of tourism and tourism-related activities and
facilities.
Housing and Urban Development Fund accounts for monies the City receives from the Department of
Housing and Urban Development. This includes Community Development Block Grants; HOME, Housing
Opportunities for Persons with AIDS (HOPWA), Lead Paint Hazard Control and Section 108 Loan programs;
and other Special Economic Development Initiative grants expended by the City to revitalize and restore
the City's urban areas.
Cultural Festivals and Events Fund accounts for the grants, private donations, and user fee revenues, and
various program and general expenses of the annual Piccolo Spoleto, MOJA and other festivals.
Hospitality Fee Fund accounts for the 2% fee on the gross proceeds of prepared food and beverage sales.
The funds are transferred to the General Fund and various other funds to offset the costs of tourismrelated services and to fund various tourism-related capital projects. The fees are also used to provide
operational funding to several tourism-related entities and facilities.
Justice Department Grants Fund accounts for the activities of various grants received from the Department
of Justice for law enforcement activities.
Municipal Accommodations Fee Fund became effective in March 1996. Ordinances established two
separate 1% fees to be imposed on the gross proceeds derived from the transient rental of
accommodations within the City. The fees are used to defray the cost of capital improvements and
operating costs beneficial to the tourism industry and to provide property tax relief.
SCE&G Non-Standard Service Fund accounts for funds used to finance special equipment and/or facilities
and special landscaping or screening of facilities within the City, particularly in historic areas.
Seized and Forfeited Assets Fund accounts for property seized during narcotics investigation activities
which is pending disposition or has been forfeited to the City by the courts.
Stormwater Utility Fund accounts for the maintenance of stormwater management, sediment control,
flood control, and facilities. Funding for the Stormwater Utility fund is derived from user fees, which are
based on equivalent residential units of $6.00.
Impact Fee Fund accounts for funds received on new developments to be used for environmental and
public safety services.
Other Special Revenue Fund accounts for various grants or other restricted revenues, and related
expenditures not included under the above funds.
88
CAPITAL PROJECTS FUNDS
Capital projects funds are used to account for financial resources for the acquisition and/or construction of
major capital facilities and equipment (other than those financed by the proprietary fund). The primary
sources of monies in these funds are proceeds of general obligation bonds and certificates of participation,
grants, contributions, property taxes, and settlements from private sources. The City has the following
nonmajor capital projects funds:
Certificates of Participation (COP) Fund accounts for the funding sources and construction costs of the
following projects:
Alexander Auditorium Garage - a five level, 560 space parking facility to serve the Gaillard Municipal
Auditorium, Charleston County School District Office, the Charleston County Library, and the Marine
Science Museum.
Joseph P. Riley, Jr. Baseball Park - a 6,000 seat (expandable to 10,000 seats) Class "A" baseball facility.
Fire Stations - construction and upfitting of new fire stations.
R.M. Greenberg Municipal Building – renovation of the Lockwood Drive Police, Traffic and
Transportation, and Department of Motor Vehicles complex and construction of a 36,368 square foot
addition to the facility.
Market Head Hall - renovation of the Market Head Hall.
Parks Department Headquarters - renovation of former Coke Building at 823 Meeting Street for use as
Parks Department main offices.
Parks - development of a tennis center at Ft. Johnson Road Park, improvement of Honey Hill Park and
expansion of ball field facilities at James Island Recreation Center and continued development of a
Johns Island park.
Riviera Theater - acquisition and renovation of the art deco Riviera Theater for use as a retail space and
conference rooms to be used by Charleston Place.
Administrative Costs - bond principal and interest payments, issuance costs, and related professional
and bank handling fees.
Charleston Neck TIF Fund accounts for tax increment financing proceeds for the Charleston Neck
Redevelopment Project Area Tax Increment Financing District (the TIF District). The fund also accounts for
the proceeds of special redevelopment bonds issued for public infrastructure projects within the TIF District.
DEBT SERVICE FUNDS
Debt service funds are used to account for resources accumulated and payments made for principal and
interest on long-term debt of governmental funds. The City has the following debt service funds:
Governor's Park Fund accounts for the debt related to the construction of a tennis facility on Daniel Island
for the annual Family Circle Cup Tournament.
Waterfront TIF Fund accounts for the tax increment financing proceeds and debt service payments for the
Cooper River Waterfront Redevelopment Project.
Energy Performance Fund accounts for the debt related to energy performance projects throughout
various City facilities.
Affordable Housing Fund accounts for the debt related to affordable housing projects. The fund also
accounts for a related note receivable from the Housing Authority of the City of Charleston.
89
COMBINING BALANCE SHEET - NONMAJOR GOVERNMENTAL FUNDS
DECEMBER 31, 2012
Special Revenue
Assets
Property taxes
Accounts
Other
Security deposits
Total assets
Liabilities
Accounts payable
Due to other funds
Deferred revenues
Unearned revenue
Total liabilities
Fund balances
Nonspendable
Long-term receivable
Restricted
Law enforcement
Tourism activities
Cultural activities
Housing services and community development
Debt service
Committed
Debt service
Assigned
Community services
Unassigned
Total fund balances (deficit)
Accommodations Tax
$
103,530
Housing &
Urban
Development
Cultural
Festivals and
Events
$
$
422,758
Justice
Department
Grants
Hospitality
Fee
23,995
$ 1,897,842
$
-
1,400
990,170
-
39,552
1,005,009
-
10,736
11,418
1,463,906
11,797
-
87,412
76,454
-
-
-
-
-
-
$ 1,095,100
$ 1,467,319
$
46,149
$ 3,373,545
$
163,866
$
$
$
35,507
2,644
1,206
50,835
90,192
$
$
13,746
150,120
163,866
334,551
334,551
338,863
516,725
26,189
4,833
886,610
32,051
32,051
-
-
-
-
-
760,549
-
580,709
-
-
3,341,494
-
-
-
-
-
-
-
760,549
580,709
3,341,494
-
$ 1,095,100
$ 1,467,319
90
(44,043)
(44,043)
$
46,149
$ 3,373,545
$
163,866
Exhibit B
Special Revenue
Municipal
Accommodations
Fee
SCE&G NonStandard
Service
$
2,495,713
$ 3,945,705
596,655
-
652,760
-
-
94,100
496,771
-
322
-
-
-
-
-
-
$
3,092,368
$ 4,598,465
$
712,813
$
590,871
$
589,303
$
-
$
$
17,113
139,966
746
2,136
10,792
170,753
$
93,725
28,484
29
468,633
590,871
$
322
322
$
124
648,435
648,559
Seized &
Forfeited
Assets
$
Stormwater
Utility
712,813
$
-
Impact Fee
$
588,981
-
-
-
-
-
1,185,849
1,906,519
3,949,906
542,060
-
-
588,981
-
-
-
-
-
3,092,368
3,949,906
542,060
-
588,981
3,092,368
$ 4,598,465
$
712,813
$
590,871
$
589,303
(Continued)
COMBINING BALANCE SHEET - NONMAJOR GOVERNMENTAL FUNDS (CONTINUED)
DECEMBER 31, 2012
Capital Projects
Special Revenue
Certificates of
Participation
Other
Assets
Property taxes
Accounts
Other
Security deposits
$
Total assets
Liabilities
Accounts payable
Due to other funds
Deferred revenues
Unearned revenue
Total liabilities
1,183,634
$
1,337,560
83,562
-
721,296
191,740
492,646
326,343
-
1,944,615
-
-
-
1,836,582
$ 3,257,704
-
2,197,775
$
3,128,249
$
31,383
31,722
25,000
3,000
15,735
26,667
133,507
$
-
$
91
$
$
Fund balances
Nonspendable
Long-term receivable
Restricted
Law enforcement
Tourism activities
Cultural activities
Debt service
Capital improvements
Committed
Debt service
Assigned
Community services
Unassigned
Total fund balances (deficit)
465,750
Charleston
Neck TIF
$
143,270
184,593
219,301
547,164
326,343
1,944,615
-
-
703,209
209,320
27,875
1,065
568,685
1,183,634
1,130,664
1,579,876
-
-
-
64,490
163,281
2,064,268
3,128,249
2,710,540
3,128,249
$ 3,257,704
2,197,775
$
Exhibit B
Debt Service
Governor's
Park
$
Waterfront
TIF
269,390
$
Energy
Performance
869,086
$
407,214
Total
Nonmajor
Governmental
Funds
Affordable
Housing
$
-
$ 13,386,411
1,565
104,334
-
1,067,071
66,340
-
-
9,375,000
-
2,404,631
2,279,302
718,132
1,284,161
2,802,598
11,423,949
326,343
11,418
-
-
-
-
1,836,582
$
375,289
$ 2,002,497
$
407,214
$ 9,375,000
$ 36,473,527
$
-
$
$
-
$
-
$ 1,040,209
139,966
62,850
543,830
5,136
814,460
1,087,381
82,335
3,776,167
$
177,721
177,721
104,334
-
-
-
9,375,000
-
11,423,949
326,343
270,955
-
1,210,599
614,177
-
-
703,209
542,060
5,497,212
27,875
580,709
1,065
2,612,218
10,391,778
-
-
407,214
-
407,214
375,289
1,824,776
407,214
9,375,000
375,289
$ 2,002,497
407,214
$ 9,375,000
$
64,490
163,281
(44,043)
32,697,360
$ 36,473,527
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
Special Revenue
Accommodations Tax
Revenues
Taxes
Other
Revenues from use of monies and property
Other
Total revenues
$
Expenditures
Current
General government
Public safety
Public service
Health and welfare
Capital outlay
Debt service
Total expenditures
over expenditures
Transfers in
Transfers out
Proceeds from sale of capital assets
(uses)
Fund balances (deficits)
Beginning of year
End of year
4,080,727
1,030
4,081,757
Housing &
Urban
Development
Cultural
Festivals and
Events
$
$
3,753,260
196,188
83,246
4,032,694
$
11,481,975
15,613
11,497,588
Justice
Department
Grants
$
1,522,291
1,522,291
1,677,539
1,395,218
-
3,124,440
140,783
1,273,396
-
5,051
104,615
-
985,411
630,714
3,072,757
752,888
94,929
4,113,040
1,273,396
109,666
1,616,125
1,009,000
(80,346)
(265,681)
11,387,922
(93,834)
(1,014,436)
-
795,783
(511,209)
299,219
321,000
-
(11,685,452)
-
93,840
(6)
-
(1,014,436)
583,793
321,000
(11,685,452)
93,834
(5,436)
503,447
55,319
(297,530)
-
77,262
(99,362)
3,639,024
(44,043)
$ 3,341,494
765,985
$
37,230
214,988
755,497
1,007,715
Hospitality
Fee
760,549
$
580,709
92
$
$
-
Exhibit C
Special Revenue
Municipal
Accommodations
Fee
SCE&G NonStandard Service
Seized &
Forfeited Assets
Stormwater
Utility
$
$
$
$
4,600,578
8,314
4,608,892
136,052
2,877
1,112
24,408
164,449
6,274,948
2,786
13,461
765
6,291,960
$
242,703
741
243,444
23,003
-
30
-
160,471
29,206
2,748,782
30,507
-
23,003
30
189,677
160,288
6,888
2,946,465
-
4,585,889
560,758
(25,228)
3,345,495
243,444
(4,761,400)
-
-
(24,882)
2,636
(3,345,495)
-
-
(4,761,400)
-
(22,246)
(3,345,495)
-
(175,511)
560,758
(47,474)
-
243,444
589,534
-
345,537
3,267,879
$
509,047
698
51,043
560,788
Impact Fee
3,092,368
3,389,148
$
3,949,906
$
542,060
$
-
$
588,981
(Continued)
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS (CONTINUED)
Capital Projects
Special Revenue
Certificates of
Participation
Other
Revenues
Taxes
Other
Revenues from use of monies and property
Other
Total revenues
$
Expenditures
Current
General government
Public safety
Public service
Health and welfare
Capital outlay
Debt service
Total expenditures
over expenditures
Transfers in
Transfers out
(uses)
907,272
2,904,077
120,304
42,141
65,338
136,463
4,175,595
$
1,846,194
478,638
42,218
162,558
1,875,926
2,567
1,659
-
4,405,534
1,366,470
262,991
1,633,687
93
3,410
1,441,598
105,060
385,701
1,000,000
374,000
1,864,761
993,339
(1,149,182)
108,692
1,629,461
(110,855)
-
-
1,518,606
-
2,064,268
(423,163)
-
(4,226)
2,341,358
$
1,438,188
-
(1,522,832)
(277,090)
End of year
$
(229,939)
(47,151)
Fund balances (deficit)
Beginning of year
110,855
110,855
Charleston Neck
TIF
(423,163)
3,133,703
3,132,475
$
3,128,249
$
2,710,540
Exhibit C
Debt Service
Governor's
Park
$
Waterfront TIF
100,000
5,650
105,650
$
$
-
$
404,806
315
405,121
$
2,578,458
16,082,553
7,691,267
136,052
8,182,505
4,338,261
242,703
793,497
293,787
1,051,737
41,390,820
-
-
-
315
-
2,774,352
2,992,076
30
3,715,163
3,097,768
1,395,218
162,558
3,092,837
525,000
93,375
618,375
273,000
64,469
337,469
799,960
530,964
1,330,924
225,000
404,813
630,128
5,102,606
1,832,429
24,165,037
(512,725)
802,954
(1,330,924)
(225,007)
17,225,783
462,700
-
(675,000)
-
1,330,924
-
-
5,627,047
(23,277,917)
410,547
462,700
(675,000)
1,330,924
-
(17,240,323)
(50,025)
127,954
-
1,696,822
407,214
425,314
$
1,140,270
153
1,140,423
Total Nonmajor
Governmental
Funds
Affordable
Housing
Energy
Performance
375,289
$
1,824,776
$
407,214
(225,007)
(14,540)
9,600,007
$
9,375,000
32,711,900
$
32,697,360
Exhibit C-1
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL MUNICIPAL ACCOMMODATIONS FEE FUND
Original
and Final
Budget
Revenues
Other taxes
Revenues from use
of money and property
$
Total revenues
Expenditures
General government
3,950,000
Variance
With
Budget
Actual
$
4,600,578
$
650,578
4,600
8,314
3,714
3,954,600
4,608,892
654,292
(19,750)
(23,003)
Transfers out
(5,461,550)
(4,761,400)
700,150
Net changes in fund balance
(1,526,700)
(175,511)
1,351,189
Fund balance
Beginning of year
3,267,879
End of year
$
94
1,741,179
(3,253)
3,267,879
$
3,092,368
$
1,351,189
NONMAJOR PROPRIETARY FUNDS
The Proprietary Funds are used to account for operations that are financed and operated in a manner
similar to private businesses, when the intent is for the cost of providing goods and services to be
recovered, in whole or in part, through user charges; or where the City Council has decided that periodic
determination of revenues earned, expenses incurred, and/or net income is appropriate for capital
maintenance, public policy, management control accountability or other purposes. The City's nonmajor
proprietary funds are as follows:
Angel Oak accounts for the operation and maintenance of the City-owned park containing a gift shop and
historic tree which is located on Johns Island.
Charleston Visitor Center accounts for the operation and maintenance of the City-owned and operated
tourism information center and gift shop.
Municipal Auditorium accounts for the activities of the City's Gaillard Municipal Auditorium including
income from rent of the facility and concessions.
Joseph P. Riley, Jr. Baseball Park accounts for the operations and maintenance of the City-owned and
operated baseball park. This facility is the home for the Charleston RiverDogs, which is a Class A Minor
League Baseball team of the New York Yankees.
Municipal Golf Course accounts for the operation and maintenance of the Charleston Municipal Golf
Course on James Island.
Slave Mart Museum accounts for the operation and maintenance of a learning center, museum, and gift
shop located on Chalmers Street.
95
Exhibit D
COMBINING STATEMENT OF NET POSITION - NONMAJOR PROPRIETARY FUNDS
DECEMBER 31, 2012
Charleston
Visitor
Center
Angel
Oak
Assets
Current assets
Other receivables
$
19,885
13,141
-
$
Municipal
Auditorium
12,833
29,418
-
$ 1,242,637
6,500
-
J.P. Riley, Jr.
Baseball
Park
$
604,233
313,430
Municipal
Golf
Course
Slave
Mart
Museum
$
30,091
20,763
13,046
-
$ 178,186
2,982
1,790
Total
$
2,087,865
66,304
19,546
315,220
Total current assets
33,026
42,251
1,249,137
917,663
63,900
182,958
2,488,935
Noncurrent assets
Capital assets
Land
Net capital assets
127,900
-
239,371
224,263
41,329
2,600,000
853,295
20,452,144
463,107
142,264
22,723
2,565,519
371,290
65,156
857,997
-
3,159,583
876,018
23,875,660
1,115,097
127,900
(91,859)
147,512
(41,329)
224,263
(8,479,531)
15,889,015
(1,145,835)
1,955,961
(119,029)
804,124
(9,877,583)
19,148,775
Total noncurrent assets
127,900
147,512
224,263
15,889,015
1,955,961
804,124
19,148,775
Total assets
160,926
189,763
1,473,400
16,806,678
2,019,861
987,082
21,637,710
7,565
25,081
94
169,691
33,426
8,986
244,843
1,794
3,510
-
9,510
16,683
4,625
-
6,170
8
22,675
-
1,362
2,152
-
18,126
31,017
56,574
42,165
1,600
1,408
28
3,152
-
38,370
31,053
56,574
90,337
4,625
1,600
-
-
-
-
794,534
-
794,534
12,869
55,899
28,947
173,205
977,442
13,574
1,261,936
Long-term liabilities
Capital leases
1,188
15,161
1,395
644
53,538
31,787
3,294
53,538
53,469
1,188
15,161
1,395
644
85,325
3,294
107,007
14,057
71,060
30,342
173,849
1,062,767
16,868
1,368,943
127,900
147,512
1,880,485
804,124
19,073,299
18,969
(28,809)
166,090
1,195,468
Liabilities
Current liabilities
Accounts payable
Accrued salaries and
related benefits
Capital leases
Customer deposits
Unearned revenue
Due to other funds
Total current liabilities
Total liabilities
Net position
Net investments in capital assets
Unrestricted (deficit)
Total net position
$
146,869
$ 118,703
96
224,263
15,889,015
1,218,795
743,814
$ 1,443,058
$ 16,632,829
(923,391)
$
957,094
$ 970,214
$
20,268,767
Exhibit E
COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION NONMAJOR PROPRIETARY FUNDS
Operating revenues
Sales and services
Revenues from use of
monies and property
Donations
Other
Total operating revenues
Operating expenses
Cost of sales and services
Personnel services
Utilities
Repairs and maintenance
Supplies
Other operating expenses
Total operating expenses
Nonoperating revenues (expenses)
Investment income
Interest expense
Gain (loss) on disposal of assets
Total nonoperating
revenues (expenses)
Income (loss) before transfers
Transfers
Transfers in
Transfers out
Total transfers
Total net position
Beginning of year
End of year
Angel
Oak
Charleston
Visitor
Center
Municipal
Auditorium
Municipal
Golf
Course
Slave
Mart
Museum
Total
$ 198,539
$ 387,879
$ 112,265
-
$ 1,372,250
$ 242,394
$ 2,313,327
9,685
208,224
19,714
407,593
65,773
178,038
324,146
324,146
379,064
1,751,314
399
242,793
788,697
9,685
399
3,112,108
83,590
87,919
2,233
4,700
750
26,935
206,127
2,097
199,014
457,559
73,492
46,340
23,271
88,370
4,000
892,046
(484,453)
18,610
459,867
327,594
5,917
14,814
163,620
83,271
1,073,693
(895,655)
71,869
167,579
98,580
5,537
88,991
(666,448)
282,878
952,934
39,707
63,614
184,030
169,176
94,394
1,786,733
(35,419)
14,603
75,416
4,862
4,056
2,958
57,480
17,160
176,535
66,258
598,695
2,105,564
615,467
223,207
231,360
594,572
756,863
5,125,728
(2,013,620)
-
-
214
(3,370,701)
-
(8,982)
1,826
-
214
(8,982)
(3,368,875)
2,097
(484,453)
(3,370,487)
(4,266,142)
-
(666,448)
(7,156)
(42,575)
66,258
(3,377,643)
(5,391,263)
-
491,756
(7,308)
484,448
1,081,269
(230,986)
850,283
1,100,000
(31,831)
1,068,169
42,888
(313)
42,575
-
2,715,913
(270,438)
2,445,475
2,097
(5)
(3,415,859)
401,721
-
66,258
(2,945,788)
J.P. Riley, Jr.
Baseball
Park
$
558,038
990,594
144,772
118,708
4,858,917
16,231,108
957,094
903,956
23,214,555
$ 146,869
$ 118,703
$ 1,443,058
$ 16,632,829
$ 957,094
$ 970,214
$ 20,268,767
97
COMBINING STATEMENT OF CASH FLOWS - NONMAJOR PROPRIETARY FUNDS
Cash flows from operating activities
Cash received from customers and users
Cash paid to suppliers
Cash paid to employees
Cash flows from noncapital
financing activities
Transfers to other funds
Transfers from other funds
Net cash provided by
noncapital financing activities
Cash flows from capital and
Acquisition and construction of capital assets
Principal paid on debt
Interest paid
Net cash provided (used) by capital and
Cash flows from investing activities
Interest on investments
Charleston
Visitor
Center
$ 208,224
(116,703)
(87,563)
$ 407,593
(428,587)
(453,627)
3,958
(474,621)
(1,019,857)
(34,687)
-
(7,308)
491,756
(230,986)
1,081,269
-
484,448
-
Net increase (decrease) in cash and
cash equivalents
Beginning of year
End of year
Reconciliation of operating income (loss) to
net cash provided (used) by operating activities
Adjustments to reconcile operating
income (loss) to net cash provided (used) by
(Increase) decrease in current assets
Other receivables
Inventories
Increase (decrease) in current liabilities
Accounts payable and accrued liabilities
Accrued compensated absences
Unearned revenue
Customer deposits
Total adjustments
J.P. Riley, Jr.
Baseball
Park
Angel
Oak
Municipal
Golf
Course
Slave
Mart
Museum
Total
$ 1,751,107
(757,399)
(955,263)
$ 241,003
(77,247)
(75,444)
$ 3,048,357
(2,338,492)
(2,108,315)
38,445
88,312
(1,398,450)
(31,831)
1,100,000
(315)
42,888
-
(270,440)
2,715,913
850,283
1,068,169
42,573
-
2,445,473
(9,000)
-
2,937
-
(853,295)
-
(2,974)
1,826
(70,153)
(8,982)
-
(865,269)
4,763
(70,153)
(8,982)
(9,000)
2,937
(853,295)
(80,283)
-
(939,641)
Municipal
Auditorium
$
178,038
(732,992)
(464,903)
$
262,392
(225,564)
(71,515)
-
-
214
-
-
-
214
3,958
827
(166,423)
180,187
735
88,312
107,596
15,927
12,006
1,409,060
29,356
89,874
1,980,269
12,833
$ 1,242,637
$
604,233
$
30,091
$ 178,186
$ 2,087,865
$
$
(666,448)
$
(35,419)
$ 66,258
$ (2,013,620)
94,394
17,160
756,863
(4,704)
(2,464)
(1,790)
2,864
(63,544)
(4,704)
(4,284)
(17,367)
4,212
(207)
73,864
3,395
425
22,054
67,997
(27,927)
(207)
(109,024)
615,170
38,445
$ 88,312
$ (1,398,450)
$ 19,885
$
$
2,097
$ (484,453)
-
4,000
83,271
1,980
(6,664)
-
3,366
(3,485)
1,861
6,653
9,843
(4,000)
9,832
(61,400)
(41,049)
(105,024)
(124,202)
3,958
$ (474,621)
$ (1,019,857)
$
Exhibit F
98
(895,655)
424,046
558,038
(61,754)
133,350
2,127
-
631,761
$
(34,687)
$
AGENCY FUND
Agency funds are custodial in nature (assets equal liabilities) and, thus, do not represent the measurement
or results of operations. The City has one agency fund as follows:
The Fireman's Insurance and Inspection Fund accounts for the receipt and disbursement of funds
received from the State relating to the payment of one percent of the premiums received from all
insurance companies collecting fire insurance premiums on properties within South Carolina.
99
Exhibit G
STATEMENT OF CHANGES IN ASSETS AND LIABILITIES - AGENCY FUND
FIREMEN'S INSURANCE AND INSPECTION FUND
Assets
Balance
January 1
Liabilities
Accounts payable
Additions
Deductions
Balance
December 31
$
664,667
$
642,249
$
629,739
$
677,177
$
664,667
$
642,249
$
629,739
$
677,177
100
Other Financial Information
Exhibit H
SCHEDULE OF COURT FINES, ASSESSMENTS AND SURCHARGES
Revenues
Collections
Fines and assessments
Surcharges
$
1,137,755
32,900
Total collections
1,170,655
Remitted to State Treasurer
Assessments
1,053,137
Revenues retained by the City
117,518
Expenditures
Salaries and fringe benefits
Coordinators - Victim Advocate Program
Automobile expense
Travel and training
Telephone
Medical University Hospital - Forensic Digital Camera
Total program expenses
$
103,152
1,980
1,765
1,558
15,000
123,455
Excess (deficiency) of revenues over expenditures
$
101
(5,937)
STATISTICAL SECTION
(UNAUDITED)
STATISTICAL SECTION
FOR THE YEAR ENDED DECEMBER 31, 2012
This section of the City of Charleston, South Carolina's comprehensive annual financial report presents
detailed trend and other information as a context for understanding what the information in the basic
financial statements, notes to the basic financial statements, required supplementary information and
other supplementary information says about the City's overall financial health.
Note
Page
Financial Trends
These schedules contain trend information to help the reader understand how
the government's financial performance and well-being have changed over time.
103 - 107
Revenue Capacity
These schedules contain information to help the reader assess the City's most
significant local revenue source, the property tax.
108 - 113
Debt Capacity
These schedules present information to help the reader assess the affordability
of the City's current level of outstanding debt and the City's ability to issue
additional debt in the future.
114 - 119
Demographic and Economic Information
These schedules offer demographic and economic indicators to help the reader
understand the environment within which the City's financial activities take
place.
120 - 121
Operating Information
These schedules contain service and infrastructure data to help the reader
understand how the information in the City's financial report relates to the
services the City provides and the activities it performs.
122 - 124
Bond Information
These schedules present information on the City's principal and interest
requirements to maturity for bonds and certificates of participation for businesstype, governmental and government-wide activities.
125 - 127
Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive
annual financial reports for the relevant year.
102
Table 1
NET POSITION BY COMPONENT
LAST TEN FISCAL YEARS
(Accrual Basis of Accounting)
(amounts expressed in thousands)
2003
Fiscal Year
2007
2008
103
$ 138,291
Restricted
1,703
Unrestricted
70,332
Total governmental activities net position $ 210,326
2004
2005
2006
$ 152,721
1,292
76,122
$ 230,135
$ 252,328
24,844
59,359
$ 336,531
$ 292,544
23,509
59,284
$ 375,337
$ 327,288
33,746
55,665
$ 416,699
$ 45,192
Restricted
Unrestricted
1,876
Total business-type activities net position $ 47,068
$ 47,322
2,900
$ 50,222
$ 50,708
3,010
$ 53,718
$ 56,558
8,832
$ 65,390
Total government
Restricted
Unrestricted
Total government net position
$ 200,043
1,292
79,022
$ 280,357
$ 303,036
24,844
62,369
$ 390,249
$ 349,102
23,509
68,116
$ 440,727
$ 183,483
1,703
72,208
$ 257,394
(Unaudited)
2009
2010
2011
2012
$ 366,510
39,816
36,957
$ 443,283
$ 391,363
46,933
23,101
$ 461,397
$ 413,524
58,812
32,580
$ 504,916
$ 440,438
68,741
34,801
$ 543,980
$ 479,834
71,821
42,446
$ 594,101
$ 63,918
3,154
$ 67,072
$ 65,448
2,864
$ 68,312
$ 68,745
5,356
$ 74,101
$ 70,167
9,149
$ 79,316
$ 73,915
10,400
$ 84,315
$ 73,522
12,794
$ 86,316
$ 391,206
33,746
58,819
$ 483,771
$ 431,958
39,816
39,821
$ 511,595
$ 460,108
46,933
28,457
$ 535,498
$ 483,691
58,812
41,729
$ 584,232
$ 514,353
68,741
45,201
$ 628,295
$ 553,356
71,821
55,240
$ 680,417
Table 2
CHANGES IN NET POSITION
104
Expenses
Governmental activities:
General government
Public safety
Public service
Health and welfare
Business-type activities:
Parking Facilities
Angel Oak
City Market
Slave Mart Museum
Total business-type expenses
Total expenses
Program Revenues
Charges for services:
General government
Public safety
Other activities
Operating grants and contributions
Total governmental activities program revenues
Charges for services:
Parking facilities
City Market
Other activities
Operating grants and contributions
Total business-type activities program revenues
Total program revenues
2003
$
$
$
$
21,854
44,026
9,333
7,195
13,134
1,284
813
275
4,292
102,206
8,918
893
139
736
84
1,416
1,182
93
13,461
115,667
22,329
3,538
2,225
901
7,604
7,449
44,046
12,042
522
2,341
3
14,908
58,954
2004
$
$
$
$
23,732
46,647
9,562
6,129
14,215
1,323
783
311
3,828
106,530
7,435
1,383
120
750
89
1,253
1,264
107
12,401
118,931
24,555
4,332
2,342
1,125
6,577
2,841
41,772
12,496
539
2,345
3
15,383
57,155
2005
$
$
$
$
25,696
48,592
10,254
4,358
16,068
1,393
781
307
3,868
111,317
8,897
1,011
147
748
99
1,367
1,373
101
13,743
125,060
27,123
4,746
2,795
1,353
5,202
10,494
51,713
13,255
543
2,538
925
17,261
68,974
Fiscal Year
2007
2008
2006
$
$
$
$
26,598
52,070
10,498
4,289
16,904
1,499
879
299
3,668
116,704
8,964
948
175
820
102
1,377
1,645
113
14,144
130,848
30,632
4,494
2,968
1,175
5,213
11,316
55,798
14,033
564
3,071
1,388
19,056
74,854
$
$
$
$
35,091
56,519
11,070
6,085
18,325
1,634
970
334
3,593
133,621
10,050
984
196
952
101
1,415
1,817
136
15,651
149,272
33,748
4,778
3,000
1,195
6,110
23,478
72,309
14,176
564
3,333
857
18,930
91,239
$
$
$
$
40,621
63,258
12,631
9,724
19,057
1,907
1,006
357
4,971
153,532
11,499
927
184
1,011
370
1,583
1,819
191
17,584
171,116
34,622
4,376
3,143
1,177
5,551
21,024
69,893
14,993
816
3,277
7
19,093
88,986
2009
$
$
$
$
34,921
62,917
11,461
16,393
16,821
1,583
915
699
4,519
150,229
11,094
967
193
905
810
1,424
1,924
153
17,470
167,699
33,161
3,274
2,592
1,040
7,392
8,053
55,512
16,187
1,497
2,966
8
2,050
22,708
78,220
2010
$
$
$
$
37,406
67,293
11,065
8,128
16,323
1,658
664
446
3,821
146,804
10,706
943
202
776
1,152
1,332
1,643
163
16,917
163,721
31,573
3,625
2,928
1,085
10,213
18,857
68,281
16,685
1,548
2,816
9
7
21,065
89,346
2011
$
$
$
$
2012
38,084
68,390
11,980
6,682
16,657
2,998
849
1,031
3,372
150,043
$
11,041
937
209
773
1,478
1,422
1,760
170
17,790
167,833
11,494
991
206
892
1,774
1,074
1,796
176
18,403
$ 169,055
32,204
3,620
2,880
1,216
7,682
18,760
66,362
17,735
1,675
3,116
14
86
22,626
88,988
$
$
32,243
74,847
11,327
5,926
18,561
2,063
749
911
4,025
150,652
32,473
3,610
2,849
1,331
6,808
23,013
70,084
19,244
2,047
3,102
10
117
24,520
94,604
2003
2004
2005
Fiscal Year
2007
2008
2006
2009
2010
2011
2012
Net (expense)/revenue
$
(58,160)
1,447
$
(64,758)
2,982
$
(59,604)
3,518
$
(60,906)
4,912
$
(61,312)
3,279
$
(83,639)
1,509
$
(94,717)
5,238
$
(78,523)
4,148
$
(83,681)
4,836
$ (80,568)
6,117
Total net expense
$
(56,713)
$
(61,776)
$
(56,086)
$
(55,994)
$
(58,033)
$
(82,130)
$
(89,479)
$
(74,375)
$
(78,845)
$ (74,451)
$
39,920
3,165
7,049
5,922
5,359
166
$
43,599
3,731
7,812
6,261
5,342
156
$
44,194
6,045
8,586
6,739
5,992
217
$
43,730
6,685
9,100
7,288
6,499
213
$
46,097
7,336
9,633
8,087
6,823
325
$
54,868
8,601
9,551
8,160
7,382
307
$
57,218
10,447
9,200
6,886
11,637
440
$
56,597
10,172
9,804
7,000
12,512
471
$
57,347
11,009
10,605
8,375
12,551
303
105
General Revenues and Other Changes
Taxes
Property, net of tax increment financing
districts
Hospitality
Accommodations
Franchise
Penalties
Grants and contributions not restricted to
specific programs
Unrestricted revenue from use of money
and property
Miscellaneous
Special items:
Proceeds from lawsuit settlement
Proceeds from waiver of reversionary
interest
Transfers
Unrestricted revenue from use of money
and property
Transfers
Total business-type activities
Total government
Change in Net Position
Total change in net position
$
$
$
13,490
14,439
16,482
16,704
17,069
16,144
15,809
15,054
16,650
2,626
1,501
34
1,134
29
2,298
178
69
3,539
5,130
216
4,268
1,158
13
2,256
2,439
197
1,635
55
19
1,655
9,670
128
2,027
3,188
817
-
2,000
-
-
-
-
-
-
-
(1,005)
78,227
79
84,582
1,557
161
92,518
609
99,713
1,865
102,674
318
110,223
(515)
112,831
(1,021)
122,042
(127)
122,745
49
1,005
1,054
79,281
24
4
(79)
(51)
84,531
139
(161)
(22)
92,496
230
7,139
(609)
6,760
106,473
254
13
(1,865)
(1,598)
101,076
48
1
(318)
(269)
109,954
36
515
551
113,382
39
7
1,021
1,067
123,109
36
127
163
122,908
20,067
2,501
22,568
$
$
$
19,824
2,931
22,755
$
$
$
32,914
3,496
36,410
$
$
$
38,807
11,672
50,479
(Unaudited)
$
$
$
41,362
1,681
43,043
$
$
$
26,584
1,240
27,824
$
$
$
18,113
5,790
23,903
$
$
$
43,519
5,215
48,734
$
$
$
39,064
4,999
44,063
$
62,884
11,492
11,482
9,586
13,001
405
18,567
2,181
(11)
332
770
130,689
22
(3,368)
(770)
(4,116)
$ 126,573
$
$
50,121
2,001
52,122
Table 3
FUND BALANCES OF GOVERNMENTAL FUNDS
(Modified Accrual Basis of Accounting)
General Fund
Nonspendable
Restricted
Committed
Assigned
Unassigned
Reserved
Unreserved
Total general fund
106
All other governmental funds
Nonspendable
Restricted
Committed
Assigned
Unassigned
Reserved
Unreserved, reported in:
Debt service funds
Special revenue funds
Capital project funds
Total all other governmental funds
2003
$
2004
2005
Fiscal Year
2007
2008
2006
1,061
19,658
$ 20,719
$
69
24,601
$ 24,670
$
129
26,317
$ 26,446
$
104
27,298
$ 27,402
182
28,282
$ 28,464
92
24,842
$ 24,934
$
$
$
$
$
$
$
$
13,637
13,513
28,594
$ 55,744
10,601
16,467
30,578
$ 57,646
28,093
111
15,985
27,088
$ 71,277
21,801
1,468
20,873
28,509
$ 72,651
$
32,510
1,539
30,757
35,006
$ 99,812
*As of December 31, 2011, fund balance classifications changed with the implementation of GASB 54.
(Unaudited)
$
2009
27,027
1,335
22,226
38,712
$ 89,300
$
$
41
23,414
23,455
2010
$
$
50
23,572
23,622
19,027
$
36,137
1,616
17,496
40,854
78,993
1,737
31,671
43,894
$ 113,439
2011*
$
$
$
2012
40
2
2,034
20,445
22,521
46
12
8,347
21,355
$ 29,760
12,327
67,025
12,936
25,108
(99)
-
$ 11,851
136,191
407
19,839
(44)
-
$ 117,297
$
$ 168,244
Table 4
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
2003
2005
2006
2009
2010
2011
$ 58,362
33,754
2,351
22,635
1,178
$ 60,665
37,805
1,895
23,904
1,328
$ 64,312
41,538
1,639
25,203
1,861
$ 67,337
44,821
1,847
26,261
1,910
$ 75,910
44,910
2,158
36,151
2,027
$ 79,960
43,559
2,018
32,136
2,188
$ 80,459
45,073
1,805
29,901
2,342
$ 82,050
48,506
1,778
31,922
3,002
1,523
499
1,713
122,015
2,682
485
1,847
130,611
4,172
455
2,080
141,260
4,590
3,107
2,282
152,155
2,435
4,813
2,171
170,575
1,886
1,271
1,713
164,731
2,167
2,155
2,787
166,689
2,285
5,224
3,169
177,936
2,369
8,052
1,790
193,627
19,441
42,553
8,436
19,979
44,888
8,845
21,694
46,585
9,616
25,042
50,045
10,476
31,556
53,092
10,439
36,972
60,113
11,901
30,528
59,206
10,706
29,365
63,428
10,198
32,081
65,648
11,289
32,206
67,693
10,514
7,118
12,792
1,282
799
6,026
13,675
1,322
762
4,677
15,123
1,391
769
4,446
16,196
1,496
860
7,190
17,611
1,632
950
11,109
18,459
1,900
985
16,722
16,116
1,582
898
8,478
16,934
1,655
646
6,669
18,151
1,723
805
6,330
17,400
2,057
662
275
13,001
311
10,932
307
16,725
299
30,439
334
21,893
357
41,127
663
29,151
660
15,209
724
23,470
864
41,414
11,032
4,398
267
121,394
11,141
3,900
7
121,788
15,110
3,754
61
135,812
12,228
3,668
155,195
16,420
3,618
788
165,523
12,907
4,366
16
200,212
23,196
4,024
180
192,972
11,698
3,721
83
162,075
27,439
3,371
62
191,432
11,871
3,092
416
194,519
(5,201)
(13,935)
(13,368)
(29,637)
(28,241)
4,614
(13,496)
(892)
23,096
(22,870)
-
23,028
(22,737)
9,680
3,000
-
27,694
(26,924)
142
-
26,349
(23,886)
151
10,000
10,000
10
(125)
29,380
(29,053)
176
-
22,223
(22,738)
365
15,600
-
20,627
(21,648)
235
19,000
70
-
33,295
(33,422)
286
5,706
13,600
-
34,708
(33,938)
250
46,725
5,139
-
-
3,569
-
3,577
-
1,350
12,831
1,875
4,574
-
-
-
-
-
Revenues
Taxes
$ 53,701
30,176
Fines
2,002
Intergovernmental
23,534
1,016
Revenues from use of monies
and property
3,090
505
Miscellaneous
3,287
Total revenues
117,311
Expenditures
General government
Public safety
Public service
Urban and community
development
Health and welfare
Business development and
assistance
Capital outlay
Debt service
Principal
Interest
Other charges
Total expenditures
Excess of revenues over
(under) expenditures
(4,083)
Other financing sources
(uses)
Transfers in
Transfers out
GO bonds issued
Refunding COP issued
Refunding bonds issued
Spec. redevpt. bonds issued
Revenue bonds issued
Premium on bonds issued
Discount on bonds issued
Bond anticipation note
issuance
Note issuance
Payments to refund/refinance
debt
Payments to refunded bond
escrow agent
Capital lease issuance
Proceeds from installment
sales
(uses)
Debt service as a percentage
of noncapital expenditures
227
17,338
(18,240)
15,360
13,305
794
-
(25,974)
3,714
-
Special Items
Proceeds from lawsuit
Proceeds from waiver of
reversionary interest
Purchase of regional
transportation authority
facility
Total special items
(6,569)
(1,875)
-
2012
$
-
-
90,402
49,104
1,646
37,242
3,022
-
(5,684)
-
3,137
240
5,320
3,742
7,129
6,874
3,703
2,557
4,028
4,615
2,850
30
1,418
10,297
2,018
454
5,737
456
-
-
10
-
-
-
-
-
-
-
6,297
7,172
19,051
16,265
41,590
15,595
16,455
29,999
16,253
59,077
-
2,000
-
-
-
-
-
-
-
-
-
-
1,557
-
-
-
-
-
-
-
1,557
-
-
-
-
-
-
-
2,330
$ 28,222
$
Fiscal Year
2007
2008
2004
2,214
14.4%
(3,562)
(1,562)
$
5,837
14.1%
$ 15,407
16.0%
$
13.2%
(Unaudited)
107
14.0%
$ (14,042)
$ (11,786)
11.1%
16.7%
$ 34,613
10.6%
$
2,757
18.5%
$
58,185
9.8%
Table 5
GOVERNMENTAL ACTIVITIES TAX REVENUES BY SOURCE
Fiscal
Year
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
Property
Tax
$ 39,920
43,599
44,194
43,730
46,097
54,868
57,218
56,597
57,347
62,884
Tax
Increment
Financing
Districts
$
3,165
3,731
6,045
6,685
7,336
8,601
10,447
10,172
11,009
11,491
Hospitality
Tax
$
7,049
7,812
8,586
9,100
9,633
9,551
9,200
9,804
10,605
11,482
Accommodations
Tax
$
5,922
6,261
6,739
7,288
8,087
8,160
6,886
7,000
8,375
9,586
(Unaudited)
108
Franchise
Tax
$
5,359
5,342
5,992
6,499
6,823
7,382
11,637
12,512
12,551
13,001
Penalties
$
166
156
217
213
325
307
440
471
303
405
$
Total
61,581
66,901
71,773
73,515
78,301
88,869
95,828
96,556
100,190
108,849
Table 6
GENERAL GOVERNMENTAL TAX REVENUES BY SOURCE
Fiscal
Year
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
Property
Tax
$
40,590
43,760
42,987
44,958
46,893
54,107
57,106
56,620
56,668
63,396
Tax Increment
Financing
Districts
$
3,165
3,731
5,784
6,717
6,917
8,376
10,286
10,283
10,701
10,923
Hospitality
Tax
$
7,049
7,812
8,585
9,100
9,633
9,551
9,200
9,804
10,605
11,482
(Unaudited)
109
Accommodations
Tax
$
2,897
3,059
3,309
3,537
3,894
3,876
3,367
3,751
4,076
4,601
$
Total
53,701
58,362
60,665
64,312
67,337
75,910
79,959
80,458
82,050
90,402
Table 7
ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY
Fiscal
Year
Real
Property
110
Charleston County:
2003
$
2004
2005
2006
2007
2008
2009
2010
2011
2012
Berkeley County:
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
$
Personal
Property
Total Taxable
Assessed
Value
Motor
Vehicles
Total
Direct
Tax
Rate
Estimated
Actual
Taxable
Value
Assessed Value
as a Percentage of
Estimated Actual
Tax Value
376,111,036
388,861,348
563,783,579
602,763,367
626,792,778
683,709,170
705,878,049
699,368,898
770,749,733
779,203,499
$
57,887,500
58,959,580
58,887,770
52,099,992
57,129,356
66,907,570
69,287,420
73,486,960
68,792,590
68,914,626
$
44,726,670
45,568,579
43,811,869
40,479,587
42,596,085
47,049,130
45,432,656
40,043,727
38,946,986
35,552,190
$
478,725,206
493,389,507
666,483,218
695,342,946
726,518,219
797,665,870
820,598,125
812,899,585
878,489,309
883,670,315
98.8
98.8
75.8
75.8
75.8
79.1
79.1
79.1
78.8
78.8
$
8,558,144,050
8,864,461,833
12,339,470,700
13,062,266,996
13,622,635,924
14,902,607,044
15,353,812,321
15,238,613,354
16,538,759,636
16,699,084,003
5.59%
5.57%
5.40%
5.32%
5.33%
5.35%
5.34%
5.33%
5.31%
5.29%
20,328,720
27,737,320
48,040,110
61,601,080
69,506,550
90,471,360
99,309,770
98,178,510
94,581,860
96,024,730
$
1,552,985
2,211,510
2,968,300
2,955,250
3,134,460
3,995,880
4,852,690
4,954,280
4,882,390
7,018,760
$
1,807,890
2,726,790
3,164,620
4,325,150
4,551,820
4,882,360
5,088,670
4,550,640
5,966,660
6,004,430
$
23,689,595
32,675,620
54,173,030
68,881,480
77,192,830
99,349,600
109,251,130
107,683,430
105,430,910
109,047,920
98.8
98.8
75.8
75.8
75.8
79.1
79.1
79.1
78.8
78.8
$
357,290,414
511,504,571
903,200,204
1,152,413,282
1,351,300,025
1,720,749,665
2,092,543,095
2,107,248,673
2,070,233,075
2,131,742,854
6.63%
6.39%
6.00%
5.98%
5.71%
5.77%
5.22%
5.11%
5.09%
5.12%
Source:
Charleston and Berkeley County Auditors
Note 1
Property was last reassessed in 2011 for Charleston County and in 2009 for Berkeley County. Tax rates are per $1,000 of assessed value.
Note 2
In 1989, the State passed legislation that exempted business inventory from property tax. The assessed value of the exempted inventory for 1990 was
$6,275,150. In place of the property tax, the State now pays the City, through State shared revenues, the amount of tax that was received in 1988. This
amount is frozen for all future years at the 1988 level. This amount has not been included in the above values.
Note 3
Under SC law all real property is appraised at actual market value and then adjusted to reflect the county-wide composite average of appraised value to
sales for the prior year, to arrive at assessed value. This value of both real estate and personal property is then adjusted to a taxable value of between
4% and 10.5%, depending on the type of property. This is used to determine the legal debt margin.
(Unaudited)
Table 8
PROPERTY TAX RATES DIRECT AND OVERLAPPING GOVERNMENTS
(Rate per $1,000 of Assessed Value)
Overlapping Rates
City of Charleston
111
Fiscal
Year
Operating
Drainage
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
96.8
96.8
73.8
73.8
73.8
77.1
77.1
77.1
76.8
76.8
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
Charleston County
Total Charleston
Park &
Direct
County
Recreation
Rate Government Commission
98.8
98.8
75.8
75.8
75.8
79.1
79.1
79.1
78.8
78.8
61.2
61.2
46.8
46.8
46.8
46.8
46.8
46.8
45.2
46.0
7.2
7.2
5.6
5.6
5.6
5.6
5.6
5.6
5.4
5.4
Berkeley County
Trident
Technical
College
School
Board
Total
2.1
2.1
2.0
2.0
2.0
2.0
2.0
2.0
2.4
2.4
117.2
121.4
106.9
106.4
113.6
122.6
126.6
126.6
126.5
126.5
187.7
191.9
161.3
160.8
168.0
177.0
181.0
181.0
179.5
180.3
Berkeley
Trident
County
Technical
Government College
52.5
54.0
51.5
50.0
51.0
51.0
50.0
50.0
50.0
50.0
4.0
4.0
3.5
3.5
3.5
3.5
3.5
3.5
3.5
3.5
School
Board
Total
194.0
194.0
190.0
185.0
191.6
191.6
186.9
186.9
186.9
186.9
250.5
252.0
245.0
238.5
246.1
246.1
240.4
240.4
240.4
240.4
Overlapping rates are those of local and county governments that apply to property owners within the City of Charleston. Not all overlapping rates apply to all City of Charleston property
owners.
These tax rates do not reflect the impact of the Local Option Sales Tax, which began July 1, 1991. Revenues from the 1% Local Option Sales Tax are applied as credits to the tax
bills. The credit is calculated on the appraised value of the property. The rates above also do not reflect property tax relief to homeowners available from the state to partially offset
school board millage.
Beginning in 2007, SC State Law limits the amount a municipality may increase its millage rate to an amount based on the prior year average of the monthly Consumer Price Indexes,
plus a percentage increase based on population. This limitation may be increased upon a two-thirds vote of the governing body for certain purposes including a prior year deficiency,
catastrophic events, a court order or decree, certain taxpayer closures, and compliance with federal or state regulations.
(Unaudited)
Table 9
PRINCIPAL PROPERTY TAXPAYERS
CURRENT YEAR AND NINE YEARS AGO
DECEMBER 31, 2012
2012
Taxpayer
South Carolina Electric and Gas
Kinder Morgan Operating, LP
Charleston Center Hotel, LLC
BellSouth Telecomm (Southern Bell)
Charleston Joint Venture (Citadel Mall)
Evening Post Publishing Co.
Gildan Activewear
Rhodia (formerly Albright & Wilson)
Charleston Financial Center
Diamondrock Charleston
American Commercial
JRC SC Properties Investment LP
Duck Pond, LLC
Nirenblatt, Nirenblatt & Hoffman
Totals
Percentage of
Total Taxable
Assessed
Rank
Value
Taxable
Assessed
Value
$ 17,989,460
6,882,163
5,563,160
3,825,310
2,830,870
2,708,360
2,524,220
2,233,980
2,052,850
2,010,000
1
2
3
4
5
6
7
8
9
10
$ 48,620,373
Source: Charleston and Berkeley County Treasurers' Offices
(Unaudited)
112
2003
Taxable
Assessed
Value
Percentage of
Total Taxable
Assessed
Rank
Value
1.80%
0.69%
0.56%
0.38%
0.28%
0.27%
0.25%
0.22%
0.21%
0.20%
$ 12,315,270
1
2.42%
5,455,790
6,119,990
2,279,800
2,042,600
3
2
5
6
1.07%
1.20%
0.45%
0.40%
2,901,230
4
0.57%
1,800,690
2,010,000
1,534,650
1,733,230
8
7
10
9
0.35%
0.40%
0.30%
0.34%
4.86%
$ 38,193,250
7.50%
Table 10
PROPERTY TAX LEVIES AND COLLECTIONS
Fiscal Year
Ended
December
31
Total Tax
Levy for
Fiscal
Year (a)
Collected within the
Fiscal Year of the Levy
Percentage
Amount
of Levy
Collections in
Subsequent
Years
113
CHARLESTON COUNTY:
2003
$
2004
2005
2006
2007
2008
2009
2010
2011
2012
39,051,423
40,018,308
41,497,801
42,057,524
44,573,318
52,076,517
55,081,247
54,552,350
58,559,315
58,203,685
$ 37,028,133
38,325,497
39,329,615
40,618,701
42,179,585
48,885,147
51,545,102
51,610,985
55,575,957
26,743,490 (b)
94.8%
95.8%
94.8%
96.6%
94.6%
93.9%
93.6%
94.6%
94.9%
(b)
$
1,939,546
1,683,030
2,157,526
1,420,476
2,363,761
3,131,781
3,453,377
2,786,037
2,528,763
(b)
BERKELEY COUNTY:
2003
$
2004
2005
2006
2007
2008
2009
2010
2011
2012
2,246,165
3,572,969
4,501,099
5,532,378
5,942,047
7,245,368
8,258,598
8,123,821
7,918,372
7,519,180
$ 2,056,311
3,347,597
3,951,397
5,361,202
5,647,618
6,793,733
7,697,317
7,702,326
7,523,081
4,962,859 (b)
91.5%
93.7%
87.8%
96.9%
95.0%
93.8%
93.2%
94.8%
95.0%
(b)
$
185,741
219,974
546,400
169,306
287,229
442,862
549,644
392,947
363,114
(b)
Total Collections to Date
Percentage
Amount
of Levy
$ 38,967,679
40,008,527
41,487,141
42,039,177
44,543,346
52,016,928
54,998,479
54,397,022
58,104,720
26,743,490
99.8%
100.0%
100.0%
100.0%
99.9%
99.9%
99.8%
99.7%
99.2%
(b)
$
99.8%
99.8%
99.9%
100.0%
99.9%
99.9%
99.9%
99.6%
99.6%
(b)
2,242,052
3,567,571
4,497,797
5,530,508
5,934,847
7,236,595
8,246,961
8,095,273
7,886,195
4,962,859
(a) Net of local option sales tax credits, includes two mills for drainage.
(b) 2012 taxes become delinquent March 16, 2013. The due date for automobiles is staggered and is billed throughout the succeeding year.
(Unaudited)
STORMWATER SYSTEM CONTINUING DISCLOSURE
DECEMBER 31, 2012
Table 11
NUMBER OF CUSTOMERS
Set forth below is a table showing the Stormwater System’s average number of customers for Fiscal Years 2008
through 2012:
Year
2008
2009
2010
2011
2012
Average
Number of
Customers
35,446
35,521
36,336
38,109
38,476
LARGEST ACCOUNTS
Set forth below is a table based upon unaudited results of operations showing the ten largest customers of the
Stormwater System for Fiscal Year 2012:
Customer
City of Charleston
S.C. State Ports Authority
Medical University of South Carolina
Charleston County School District
College of Charleston
Charleston Housing Authority
Bon Secours-St. Francis Hospital
Bishop Gadsden Episcopal Community
Wal-Mart Stores Inc.
Concord West of the Ashley
Revenue
Percentage of
Stormwater
Fees
$121,609
73,001
63,649
46,574
42,417
34,074
24,656
24,137
24,133
22,896
1.95%
1.17%
1.02%
0.75%
0.68%
0.55%
0.40%
0.39%
0.39%
0.37%
$477,146
7.67%
FEE STRUCTURE
Pursuant to the Stormwater Ordinance, the System is funded in part from monthly fees imposed upon all owners of
developed property (other than properties that are designated for homestead exemptions) in the City (the
“Stormwater Fee”). Stormwater Fees are established as a function of the assumed amount of impervious surface
area (such as streets, parking lots, sidewalks and roofs) for developed property. All developed properties in the City
have been classified as (i) single family residential, (ii) multi-family residential or (iii) non-residential.
Monthly fees for all developed property, whether occupied or vacant, are as follows:
a) single family residential property is charged a fee of the base rate, which is currently $6.00 per month (the
“Base Rate”), times one equivalent residential unit (ERU) of 2,200 square feet regardless of the size of the
parcel or the improvements;
b) multi-family residential property is charged a fee of 75% of the Base Rate for each dwelling unit; and
c) non-residential property is charged the Base Rate per ERU. The minimum fee for any nonresidential property is
the Base Rate. The City may make adjustments to fee amount for nonresidential properties for which private
stormwater facilities exist.
(Unaudited)
114
Table 12
RATIOS OF OUTSTANDING DEBT BY TYPE
(amounts expressed in thousands, except per capita)
115
Fiscal
Year
General
Obligation
Bonds
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
$ 33,458
29,788
35,543
30,864
36,008
32,085
28,039
43,603
40,001
37,108
Special
Redevelopment
Bonds
$
18,413
16,666
14,462
12,756
20,925
19,301
23,239
21,533
17,827
15,122
Certificates
of
Revenue
Participation Bonds
$
14,786
13,776
12,785
11,751
10,659
9,506
8,309
7,077
5,800
4,452
$ 6,349
5,776
5,225
4,700
4,175
3,650
3,125
2,600
2,075
53,414
Notes
$ 5,557
4,771
4,481
5,481
15,385
19,381
18,037
17,329
16,405
14,756
Bond
Anticipation
Notes
$
3,570
1,875
-
Capital
Leases
$ 7,332
7,115
8,911
12,149
10,585
9,625
8,126
5,560
3,800
6,790
Business-Type Activities
Intergovernmental General
Certificates
AgreeObligation
of
Revenue
ment
Bonds
Participation Bonds
$
1,125
750
375
$ 16,493
14,643
12,718
10,708
9,085
7,389
24,198
21,631
18,840
16,692
$
5,401
5,068
4,721
4,355
3,965
3,548
3,112
2,660
2,187
1,684
$ 14,570
13,495
12,711
11,979
11,230
10,392
9,420
13,853
12,521
11,207
Capital
Leases
Percentage
of
Per
Total
Personal Capita
Government Income [1]
[1]
$
$
26
190
136
110
110
122,359
114,668
111,557
104,743
122,017
116,778
125,795
137,107
120,316
161,710
4.20%
3.72%
3.28%
2.81%
3.02%
2.70%
2.79%
3.14%
2.75%
3.46%
[1] See the Schedule of Demographic and Economic Statistics in Table 17 for personal income and population status.
Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements. Amounts above are reflected net of unamortized premiums and
deferred amounts on refunding.
(Unaudited)
$ 1,140
1,038
966
884
1,006
944
1,010
1,092
980
1,287
Table 13
RATIOS OF GENERAL BONDED DEBT OUTSTANDING
(amounts expressed in thousands, except per capita amount)
General
Obligation
Bonds
Fiscal
Year
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
$
49,950
44,431
48,261
41,572
45,093
39,474
52,237
65,235
58,842
53,801
Less: Amounts
Available in Debt
Service Fund
$
5
7
8
-
Total
$
49,950
44,431
48,256
41,565
45,085
39,474
52,237
65,235
58,842
53,801
Percentage of
Estimated
Actual Taxable
Value of
Property [1]
0.56%
0.47%
0.36%
0.29%
0.30%
0.24%
0.30%
0.38%
0.32%
0.29%
Per
Capita [2]
$
465
402
418
351
372
319
419
520
479
428
[1] See the Schedule of Assessed Value and Estimated Actual Value of Taxable Property in Table 7 for
property value data.
[2] Population data can be found in the Schedule of Demographic and Economic Statistics in Table 17.
Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements.
Amounts above are reflected net of unamortized premiums and deferred amounts on refunding.
(Unaudited)
116
Table 14
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
DECEMBER 31, 2012
Governmental Unit
Charleston County
Charleston County Parks and Recreation
Berkeley County
Berkeley County School District
Subtotal: overlapping debt
Debt
Outstanding
$
269,610
544,190
23,615
70,745
146,583
City of Charleston direct debt
Estimated
Share of
Overlapping
Debt
Estimated
Percentage
Applicable
26.71%
26.71%
26.71%
15.08%
15.08%
$
100.00%
Total direct and overlapping debt
72,013
145,353
6,308
10,668
22,105
256,447
126,482
$
382,929
Sources: Assessed value data used to estimate applicable percentages provided by Charleston and
Berkeley County. Overlapping debt data provided by Carolinas Municipal Advisory Council.
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 businesses of the City of
Charleston. 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 county's
taxable assessed value that is within the government's boundaries and dividing it by the
county's total taxable assessed value.
(Unaudited)
117
Table 15
LEGAL DEBT MARGIN INFORMATION
Debt limit
Total net debt applicable to limit
Legal debt margin
Total net debt applicable to the limit
as a percentage of debt limit
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
$ 40,703
$ 42,706
$ 58,162
$ 61,648
$ 64,807
$ 72,271
$ 74,890
$ 74,149
$ 79,216
$ 79,919
18,729
20,124
23,807
20,650
17,885
17,580
33,416
48,495
46,365
43,985
$ 21,974
$ 22,582
$ 34,355
$ 40,998
$ 46,922
$ 54,691
$ 41,474
$ 25,654
$ 32,851
$ 35,934
46.01%
47.12%
40.93%
33.50%
27.60%
24.33%
44.62%
65.40%
58.53%
55.04%
118
Legal Debt Margin Calculation for Fiscal Year 2012:
Assessed value
Plus: merchants' inventory
Total assessed value
$ 992,718
6,275
$ 998,993
Debt limit (8% of total assessed value)
Debt applicable to limit:
Less: Referendum bonds
Total debt applicable to limit
$ 79,919
Legal debt margin
$ 35,934
53,360
(9,375)
43,985
Note: Title 5, Chapter 21, Article I of the Code of Laws of the State of South Carolina, 1976 states that the constitutional debt limit of a municipality may
not exceed 8 percent of the locality's assessed valuation. Debt in excess of the limit must be authorized by a majority of qualified electors.
(Unaudited)
Table 16
PLEDGED REVENUE COVERAGE
Parking Revenue Bond
Net Available
Debt Service
Revenue
Principal
Interest
$
6,275,948
$
573,796
$
1,034,459
6,692,541
845,181
(272,698)
6,764,752
784,184
520,054
7,701,789
732,223
704,168
6,515,180
748,668
731,769
5,685,666
838,186
577,210
7,747,119
971,858
318,187
8,404,083
1,046,680
199,331
8,891,747
1,077,939
138,763
9,839,491
1,088,503
142,558
Fiscal
Year
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
Parking
Revenue [1]
$
12,041,873
[a]
12,496,403
13,255,547
14,032,420
14,176,014
14,993,098
16,187,038
16,685,230
17,734,668
19,243,587
Less: Operating
Expenses [5]
$
5,765,925
5,803,862
6,490,795
6,330,631
7,660,834
9,307,432
8,439,919
8,281,147
8,842,921
9,404,096
Fiscal
Year
2010
2011
2012
Revenue
[2] [3]
5,409,497
5,974,849
6,983,234
Less: Operating
Expenses [5]
$
1,014,539
1,061,905
1,188,510
City Market Revenue Bonds
Net Available
Debt Service
Revenue
Principal
Interest
$
4,394,958
$
20,443
$
71,662
4,912,944
254,259
203,130
5,794,724
225,377
277,513
Coverage
47.72
10.74
11.52
Revenue
[3]
5,370,957
5,663,203
6,149,674
6,651,267
7,366,443
7,382,287
6,386,849
6,837,762
7,584,545
8,690,649
Less: Operating
Expenses [5]
$
1,512,130
1,687,657
1,729,385
1,880,786
2,692,946
3,012,582
2,084,407
2,037,090
2,380,389
3,095,760
Revenue Bond
Net Available
Debt Service
Revenue
Principal
Interest
$
3,858,827
$
570,626
$
551,736
3,975,546
573,639
506,671
4,420,289
550,512
461,404
4,770,481
525,000
418,522
4,673,497
525,000
376,470
4,369,705
525,000
334,418
4,302,442
525,000
292,131
4,800,672
525,000
250,312
5,204,156
525,000
117,000
5,594,889
525,000
93,375
Coverage
3.44
3.68
4.37
5.06
5.18
5.08
5.27
6.19
8.11
9.05
[b] $
Fiscal
Year
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
$
Coverage
3.90
11.69
5.19
5.36
4.40
4.02
6.01
6.74
7.31
7.99
Stormwater Revenue Bond [6]
Fiscal
Year
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
[1]
[2]
[3]
[4]
[5]
[6]
[a]
[b]
[c]
[d]
$
[c]
[d]
[d]
[d]
[d]
Revenue
[4]
3,689,021
4,254,015
6,691,564
7,817,120
10,190,674
9,906,540
11,597,890
10,489,992
10,863,562
11,008,877
Less: Operating
Expenses [5]
$
2,000
3,335
169,249
535,538
2,961,435
9,027,412
546,141
60,334
109,206
Special Redevelopment Bonds
Net Available
Debt Service
Revenue
Principal
Interest
$
3,689,021
$
1,747,012
$
857,884
4,252,015
1,747,012
849,730
6,688,229
2,204,155
816,645
7,647,871
1,705,726
626,551
9,655,136
1,705,726
591,485
6,945,105
1,705,726
1,203,932
2,570,478
1,705,726
937,516
9,943,851
1,705,726
806,832
495,115
10,803,228
3,705,726
10,899,671
2,705,726
557,564
Coverage
1.42
1.64
2.21
3.28
4.20
2.39
0.97
3.96
2.57
3.34
Revenue for the Parking Revenue Bond includes revenue for all parking facilities.
Revenue for the City Market Revenue Bond includes all city market revenues.
Revenue for the Revenue Bond includes revenues from state and municipal hotel accommodations taxes.
Revenue for the Special Redevelopment Bonds includes revenues from the King Street Gateway TIF, Waterfront TIF and Charleston
Neck TIF funds.
Details regarding the City's outstanding debt can be found in Note III. H. to the current financial statements. Operating expenses do not
include principal and interest, depreciation, amortization or capital outlay.
Stormwater bonds were issued during 2012; however, no debt service payments were due during 2012.
During 2004 it was determined that an interest rate change effective January 2003 had not been put into effect for this bond. As a
result, the City had an overpayment on this bond and a revised amortization schedule was calculated.
In 2010 the City issued revenue bonds for the renovation of the City Market in the amount of $5,500,000.
The Charleston Neck TIF fund is included beginning with 2008.
The 2007 $10,000,000 Charleston Neck TIF Bond matured in 2009. The 2009 $15,600,000 Charleston Neck TIF Bond paid off the
2007 bond. The 2011 $13,600,000 Charleston Neck TIF Bond, in conjunction with a $2 million payment towards principal, paid off the
2009 bond. Operating expenses for the Charleston Neck TIF in 2009 include $9,009,397 of expenditures related to construction of
infrastructure-related items that have been or will be donated back to the City in the future.
(Unaudited)
119
Table 17
DEMOGRAPHIC AND ECONOMIC STATISTICS
Fiscal
Year
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
Population
[a]
107,337
110,423
115,450
118,492
121,247
123,737
124,593
125,533
122,782
125,691
Personal
Income
(expressed in
thousands)
$ 2,914,736
3,083,010
3,396,193
3,728,706
4,035,828
4,325,722
4,500,798
4,363,025
4,382,581
4,680,356
Per
Capita
Personal
Income [b]
$
27,155
27,920
29,417
31,468
33,286
34,959
36,124
34,756
35,694
37,237
Median
Age
[c]
33.2
33.2
33.2
35.2
35.7
35.7
35.7
35.7
35.7
36.3
Unemployment
Rate
[c]
3.8%
3.8%
4.4%
4.7%
5.0%
7.4%
7.4%
9.7%
9.7%
6.3%
Data sources:
[a] City of Charleston Department of Planning, Preservation and Sustainability
[b] Bureau of Economic Analysis, US Department of Commerce
[c] Charleston Metro Chamber of Commerce
(Unaudited)
120
Table 18
PRINCIPAL EMPLOYERS METRO AREA
CURRENT YEAR AND NINE YEARS AGO
2012
Employer
1
1
1
Joint Base Charleston
Medical University of SC (MUSC)
Boeing Charleston
Roper St. Francis Healthcare
JEM Restaurant Group
Trident Medical Center (Trident
Health Systems)
College of Charleston
Charleston County
Wal-Mart Stores
US Navy
Charleston Air Force Base
Mead Westvaco
Piggly Wiggly Carolina
Columbia/HCA Carolina's HQ &
Med Center
Total
1
Employees
Rank
Percentage
of Total Metro
Employment
22,000
13,000
5,900
5,300
5,100
3,000
1
2
3
4
5
6
13.46%
7.95%
3.61%
3.24%
3.12%
1.83%
2,500
2,400
2,300
2,300
7
8
9
10
1.53%
1.47%
1.41%
1.41%
63,800
39.03%
2003
Employees
8,200
2
5.61%
5,000
4,000
4
5
3.42%
2.74%
1,800
10
1.23%
2,243
8
1.53%
12,543
5,000
2,858
2,447
1
3
6
7
8.58%
3.42%
1.95%
1.67%
2,082
9
1.42%
46,173
In 2010 all military installations were combined to form Joint Base Charleston
Sources: County of Charleston
Charleston Metro Chamber of Commerce, Center for Business Research
(Unaudited)
121
Rank
Percentage
of Total Metro
Employment
31.57%
Table 19
FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION
122
Function
General Government
Public Safety
Police
Officers
Civilians
Fire
Firefighters and Officers
Civilians
Engineering and Inspection
Livability
Traffic & Transportation
Public Service
Administrative
Streets
Sanitation
Fleet
Urban and Community Development
Culture and Recreation
Community Promotions
Health and Welfare
Business Development and Assistance
Angel Oak
City Market
Slave Mart Museum
Parking Facilities
2003
2004
2005
2006
Fiscal Year
2007
2008
2009
2010
2011
2012
161.02
157.05
141.84
146.12
157.17
174.08
175.81
176.66
175.32
178.40
361.00
141.12
363.00
141.12
368.00
141.12
373.00
141.12
382.00
151.13
382.00
139.12
382.00
143.12
382.00
137.62
383.00
140.83
412.00
148.83
228.00
13.75
35.00
25.00
240.00
13.75
35.00
25.00
243.00
13.00
37.00
25.00
246.00
13.00
37.00
25.00
252.00
19.74
39.00
26.00
267.00
20.74
42.00
26.00
278.00
20.74
42.00
26.00
301.00
12.75
32.00
12.00
26.00
296.00
14.00
32.00
12.00
25.00
296.00
16.00
32.00
12.00
25.00
3.00
37.00
121.00
18.00
50.81
219.92
7.80
7.80
9.40
2.00
1.00
1.65
12.49
21.75
21.23
2.52
11.00
3.00
37.00
121.00
17.00
43.39
228.49
7.80
7.80
9.40
2.00
1.00
2.00
13.32
21.75
21.23
2.52
11.00
3.00
37.00
121.00
17.00
43.91
249.76
7.79
5.63
10.93
2.00
1.00
2.10
13.10
21.95
19.81
2.00
11.00
4.00
37.00
132.00
16.00
44.22
249.86
7.79
4.05
10.93
2.00
1.00
2.06
13.10
21.95
19.81
2.00
11.00
4.00
37.00
138.00
16.00
47.65
251.48
7.68
4.06
11.75
2.00
2.00
2.06
13.34
23.20
19.13
3.00
12.00
4.00
36.00
141.00
16.00
46.98
252.38
7.64
4.06
11.75
2.50
1.00
1.70
13.34
23.70
19.13
3.00
37.00
4.00
36.00
141.00
19.00
43.98
255.70
7.64
4.06
10.54
2.50
1.00
13.34
23.70
19.13
3.00
38.00
4.00
36.00
138.00
19.00
43.98
269.88
7.64
4.06
9.54
2.50
1.00
13.34
23.70
19.13
3.00
38.00
4.00
36.00
136.00
19.00
43.98
268.40
7.64
4.17
9.54
2.50
1.00
13.34
23.75
17.50
3.00
41.00
4.00
36.00
136.00
19.00
37.27
279.09
7.64
4.17
13.14
2.88
1.00
13.34
23.75
7.00
4.00
41.00
1,513.26
1,524.62
1,537.94
1,560.01
1,621.39
1,672.12
1,690.26
1,712.80
1,708.97
1,749.51
Source: City of Charleston Budget Office
(Unaudited)
Table 20
OPERATING INDICATORS BY FUNCTION
Function
Police
Physical arrests
Calls for service
Fire
Calls for service
Hazmat drills individual and team
Hazmat team drills
Fire prevention demonstrations
Smoke detectors installed
Signs fabricated
Linear footage of markings installed
Traffic studies performed
Traffic calming devices installed
Inspections
Building permits issued
Streets and Sidewalks
Potholes repaired
Linear feet of sidewalks repaired
Linear footage of ditches cleaned
Linear footage of pipes cleaned
Sanitation
Tons of refuse collected
Tons of trash collected
Planning, Preservation & Sustainability
Number of property acres annexed
Number of Commercial Corridor
Design Review Board applications
Number of Board of Architectural
Review applications
Facility permits approved
Participants - youth sports
Participants - adult sports
Participants - tennis
Participants - aquatics
Fiscal Year
2007
2008
2003
2004
2005
2006
2009
2010
2011
5,434
176,082
5,362
178,150
4,881
182,387
5,552
194,880
9,461
198,704
6,775
NA
NA
NA
250
5,882
920
NA
292
262
6,016
494
NA
169
144
6,064
968
NA
289
261
1,180
58,600
177
48
666
63,470
177
48
979
59,970
248
20
2,072
5,652
NA
NA
741,984
361,660
6,802
230,077
8,004
223,434
7,157
247,122
7,109
341,782
7,293
389,253
9,611
474
NA
249
348
15,004
198
NA
199
251
15,899
508
NA
201
249
12,469
232
NA
188
124
14,009
NA
20
211
212
16,383
NA
50
307
202
877
81,900
201
38
1,094
67,542
139
39
1,548
76,490
194
53
1,680
47,730
161
36
1,561
70,620
281
27
1,614
53,179
193
11
924
25,958
202
5
5,749
5,423
5,507
4,355
3,979
4,007
4,228
4,296
2,984
8,059
523,139
459,090
2,569
9,319
439,307
441,957
2,077
8,780
406,694
558,716
1,858
7,578
537,467
575,651
1,168
8,318
781,739
399,123
3,476
7,066
695,981
692,630
4,003
6,539
809,193
636,943
2,162
4,176
710,391
682,743
1,182
4,633
1,185,908
503,290
36,105
24,031
44,000
23,000
36,416
22,119
35,333
25,497
37,922
22,837
36,217
24,451
32,436
21,588
37,930
20,779
37,034
20,931
37,661
19,207
233
733
899
735
1,000
307
178
22
86
91
395
467
595
639
500
709
399
371
466
404
2,024
2,068
2,245
1,989
2,000
1,899
1,702
1,586
1,517
1,464
1,228
3,714
4,130
NA
30,263
1,229
13,536
11,188
6,365
61,675
1,290
13,397
6,383
7,260
51,897
1,146
24,252
15,656
8,834
60,818
1,193
20,098
19,148
9,029
51,881
1,179
29,472
18,103
10,094
61,447
1,139
32,390
19,678
11,985
65,517
1,522
31,457
25,182
12,670
81,402
4,831
36,489
14,229
13,668
71,673
5,669
33,497
13,744
13,939
83,452
NA = Not available.
Source: Various City departments
Performance measures from City Budget Books
(Unaudited)
123
2012
Table 21
CAPITAL ASSET STATISTICS BY FUNCTION
Function
Public Safety
Police
Stations/facilities
Patrol units
Fire
Stations
Engines/trucks
Public Service
Streets
Miles of streets
Street lights
Sanitation
Collection trucks
Trucks/scows
Park acreage
Parks
Swimming pools
Tennis courts
Community centers
2003
2004
2005
2006
Fiscal Year
2007
2008
2009
2010
2011
2012
35
321
35
331
35
335
35
342
35
348
35
352
36
362
35
369
35
385
35
414
17
24
18
26
18
26
18
27
19
27
19
28
19
28
19
28
19
28
19
28
617
8,935
617
9,089
647
9,302
656
9,541
664
10,719
664
11,091
676
11,176
682
11,538
684
11,806
690
12,159
29
17
29
18
29
23
31
26
32
26
33
23
34
23
34
23
35
28
35
28
1,200
95
4
66
4
1,200
95
4
66
4
1,200
95
4
66
4
1,200
95
4
77
4
1,346
100
4
77
4
1,410
120
4
77
4
1,500
120
4
77
4
1,500
120
4
83
5
1,500
120
4
83
5
1,806
120
4
83
5
Source: Various City departments
(Unaudited)
124
Table 22
SCHEDULE OF BONDS AND COP PRINCIPAL AND INTEREST REQUIREMENTS TO MATURITY
BUSINESS-TYPE ACTIVITIES
DECEMBER 31, 2012
1997
$16,493,220
(Parking)
REVENUE
BOND
DUE DATES
PRINCIPAL ONLY
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
TOTALS
Monthly
2009
$18,100,000
(Parking)
GEN OBL
BOND
2010
$2,100,000
(City Market)
REVENUE
BOND
2010
$3,400,000
(City Market)
REVENUE
BOND
3-1/9-1
3-1/9-1
3-1/9-1
TOTALS
$
1,117,283
1,138,777
1,159,949
1,181,514
1,203,480
406,112
-
$
549,845
572,005
594,165
-
$
700,000
750,000
800,000
850,000
900,000
1,000,000
1,500,000
2,000,000
2,500,000
2,500,000
2,800,000
-
$
64,624
68,693
73,018
77,616
82,502
87,697
93,218
99,087
105,326
111,957
119,006
126,499
134,464
142,930
151,929
161,494
171,662
89,843
$
172,642
181,099
189,971
199,277
209,038
219,278
230,020
241,287
253,107
265,505
278,511
292,155
306,467
-
$
2,604,394
2,710,574
2,817,103
2,308,407
2,395,020
1,713,087
1,823,238
2,340,374
2,858,433
2,877,462
3,197,517
418,654
440,931
142,930
151,929
161,494
171,662
89,843
$
6,207,115
$
1,716,015
$
16,300,000
$
1,961,565
$
3,038,357
$
29,223,052
$
624,427
624,593
623,873
-
$
1,288,500
1,316,750
1,343,500
1,368,750
1,390,250
1,454,500
1,904,500
2,343,250
2,762,000
2,662,000
2,856,000
-
$
185,255
185,255
185,255
185,255
185,255
185,255
185,255
185,255
185,255
185,255
185,255
185,255
185,255
185,255
185,255
185,255
185,255
92,629
$
317,635
317,635
317,635
317,635
317,635
317,635
317,635
317,635
317,635
317,635
317,635
317,635
317,634
-
$
3,639,597
3,667,251
3,693,281
3,094,658
3,116,158
2,365,063
2,407,390
2,846,140
3,264,890
3,164,890
3,358,890
502,890
502,889
185,255
185,255
185,255
185,255
92,629
$
1,872,893
$
20,690,000
$
3,241,964
$
4,129,254
$
36,457,636
PRINCIPAL AND INTEREST
2013
$
1,223,780
2014
1,223,018
2015
1,223,018
2016
1,223,018
2017
1,223,018
2018
407,673
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
TOTALS
2003
$21,245,000
($5,884,865 Parking)
CERTIFICATE OF
PARTICIPATION
(REFUNDING)
3-1/9-1
$
6,523,525
Note: These amounts are also included in the following schedules. The total principal amounts above are before
the application of discounts and deferred losses, if any.
(Unaudited)
125
GOVERNMENTAL ACTIVITIES
DECEMBER 31, 2012
2000
2002
2003
2005
$8.8M
$15.6M
$21.245M ($15.360M)
$3M
GOV'S PARK
SPECIAL
CERTIFICATE OF
SPECIAL
TENNIS CENTER REDEV BOND
PARTICIPATION REDEV BOND
REV BOND
(REFUNDING)
(REFUNDING)
(REFUNDING)
DUE DATES
3-1/9-1
PRINCIPAL ONLY
2013
$
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
TOTALS
3-1/9-1
2-1/8-1
2-1/8-1
3-1/9-1
3-1/9-1
1,432,726
-
$
1,435,155
1,492,995
1,550,835
-
$
$ 1,550,000
$
1,432,726
$
4,478,985
$ 1,089,000
$ 5,835,000
$ 9,375,000
$ 1,800,000
$
1,483,767
-
$
1,629,823
1,630,257
1,628,377
-
$
$
$
$
$
1,483,767
$
4,888,457
$ 1,210,599
323,739
310,177
296,614
280,069
-
$
2010
$1.9M
GEN OBL
BOND
$
$ 1,688,375
273,000
273,000
273,000
270,000
-
2007
$10M
GEN OBL
BOND
525,000
525,000
500,000
-
2013
$
594,750
2014
571,125
2015
522,500
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
TOTALS
2-1/8-1
2005
$9.68M
GEN OBL
BOND
625,000
650,000
680,000
710,000
740,000
775,000
810,000
845,000
-
840,138
839,637
842,188
844,869
848,125
854,719
859,494
861,900
-
$ 6,791,070
Note: These amounts are also included on the following table.
The total principal amounts above are before the application of discounts and deferred losses, if any.
(Unaudited)
126
$
225,000
250,000
250,000
300,000
325,000
350,000
375,000
400,000
425,000
450,000
475,000
500,000
525,000
550,000
600,000
625,000
650,000
675,000
700,000
725,000
-
618,563
631,687
620,438
659,437
670,313
678,437
685,313
692,937
701,438
708,937
715,438
720,937
725,109
727,938
754,219
753,953
752,656
749,906
745,687
740,407
-
$ 14,053,750
$
150,000
350,000
600,000
700,000
-
187,300
384,300
627,300
714,700
-
$ 1,913,600
Table 23
2010
$17.1M
GEN OBL
BOND
2011
$6.555M
GEN OBL
BOND
(REFUNDING)
2011
$13.6M
CHAS NECK
REDEV BOND
(REFUNDING)
2012
$46.725M
DRAINAGE
REV BOND
3-1/9-1
1-1/7-1
1-15/7-15
1-1/7-1
1,100,000
1,250,000
1,500,000
1,750,000
2,000,000
2,000,000
2,250,000
2,500,000
2,750,000
-
$ 1,100,000
850,000
1,000,000
-
$ 12,600,000
-
$
1,345,000
1,450,000
1,575,000
1,710,000
1,775,000
1,865,000
1,960,000
2,055,000
2,160,000
2,265,000
2,380,000
2,500,000
2,575,000
2,650,000
2,730,000
2,870,000
3,010,000
3,160,000
3,270,000
3,420,000
$ 18,365,881
5,735,995
6,303,835
3,555,000
3,875,000
4,150,000
4,550,000
4,955,000
4,480,000
4,610,000
4,990,000
5,380,000
5,775,000
3,125,000
3,250,000
3,355,000
3,520,000
3,685,000
3,860,000
3,995,000
3,420,000
$ 17,100,000
$ 2,950,000
$ 12,600,000
$ 46,725,000
$ 104,935,711
$
624,187
624,188
624,187
624,187
1,724,187
1,842,563
2,053,500
2,250,250
2,438,125
2,365,125
2,542,125
2,710,000
2,860,000
-
$ 1,159,295
887,185
1,020,100
-
$ 12,877,200
-
$ 2,063,283
3,321,550
3,377,375
3,441,875
3,511,175
3,497,600
3,496,600
3,495,975
3,490,600
3,490,225
3,484,600
3,483,475
3,506,475
3,505,350
3,501,975
3,473,975
3,473,975
3,466,975
3,486,425
3,467,550
3,481,987
$ 22,402,045
9,200,106
9,559,079
6,565,137
6,753,800
6,873,319
7,094,907
7,301,062
6,630,163
6,564,287
6,742,163
6,914,412
7,091,584
4,233,288
4,256,194
4,227,928
4,226,631
4,216,881
4,232,112
4,207,957
3,481,987
$ 23,282,624
$ 3,066,580
$ 12,877,200
$ 71,519,020
$ 142,775,042
$
TOTALS
FOR ALL BONDS AND COP GOVERNMENT-WIDE
DECEMBER 31, 2012
1997
2000
2002
2003
2005
2005
2007
$16,493,220
REVENUE BOND
AQUARIUM
GARAGE
$8.8M
GOV'S PARK
TENNIS CENTER
REV BOND
$15.6M
SPECIAL
REDEV BOND
$21.245M
CERTIFICATE OF
PARTICIPATION
(REFUNDING)
$3M
SPECIAL
REDEV BOND
(REFUNDING)
$9.68M
GEN OBL
BOND
$10M
GEN OBL
BOND
MONTHLY
3-1/9-1
2-1/8-1
3-1/9-1
2-1/8-1
2-1/8-1
3-1/9-1
DUE DATES
PRINCIPAL ONLY
2013
$
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
1,117,283
1,138,777
1,159,949
1,181,514
1,203,480
406,112
-
$
525,000
525,000
500,000
-
$
1,432,726
-
$
1,985,000
2,065,000
2,145,000
-
$
273,000
273,000
273,000
270,000
-
$
625,000
650,000
680,000
710,000
740,000
775,000
810,000
845,000
-
$
225,000
250,000
250,000
300,000
325,000
350,000
375,000
400,000
425,000
450,000
475,000
500,000
525,000
550,000
600,000
625,000
650,000
675,000
700,000
725,000
-
$
6,207,115
$
1,550,000
$
1,432,726
$
6,195,000
$
1,089,000
$
5,835,000
$
9,375,000
$
594,750
571,125
522,500
-
$
1,483,767
-
$
2,254,250
2,254,850
2,252,250
-
$
323,739
310,177
296,614
280,069
$
840,138
839,637
842,188
844,869
$
618,563
631,687
620,438
659,437
2013
$
1,223,780
2014
1,223,018
2015
1,223,018
2016
1,223,018
2017
1,223,018
-
-
-
-
848,125
670,313
2018
407,673
-
-
-
-
854,719
678,437
2019
-
-
-
-
-
859,494
685,313
2020
-
-
-
-
-
861,900
692,937
2021
-
-
-
-
-
-
701,438
2022
-
-
-
-
-
-
708,937
2023
-
-
-
-
-
-
715,438
2024
-
-
-
-
-
-
720,937
2025
-
-
-
-
-
-
725,109
2026
-
-
-
-
-
-
727,938
2027
-
-
-
-
-
-
754,219
2028
-
-
-
-
-
-
753,953
2029
-
-
-
-
-
-
752,656
2030
-
-
-
-
-
-
749,906
2031
-
-
-
-
-
-
745,687
2032
2033
-
-
-
-
-
-
740,407
-
6,791,070
$ 14,053,750
TOTALS
$
6,523,525
$
1,688,375
$
1,483,767
$
6,761,350
$
Note: The total principal amounts above are before the application of discounts and deferred losses, if any.
(Unaudited)
127
1,210,599
$
Table 24
$
2009
2010
2010
2010
2010
2011
2011
2012
$18.1M
GEN OBL
BOND
$2.1M
CITY
MARKET
REV BOND
$3.4M
CITY
MARKET
REV BOND
$1.9M
GEN OBL
BOND
$17.1M
GEN OBL
BOND
$6.555M
GEN OBL
BOND
(REFUNDING)
$13.6M
CHAS NECK
REDEV BOND
(REFUNDING)
$46.725M
DRAINAGE
REV BOND
3-1/9-1
3-1/9-1
3-1/9-1
3-1/9-1
3-1/9-1
1-1/7-1
1-1/7-1
1-1/7-1
700,000
750,000
800,000
850,000
900,000
1,000,000
1,500,000
2,000,000
2,500,000
2,500,000
2,800,000
-
$
64,624
68,693
73,018
77,616
82,502
87,697
93,218
99,087
105,326
111,957
119,006
126,499
134,464
142,930
151,929
161,494
171,662
89,843
-
$
172,642
181,099
189,971
199,277
209,038
219,278
230,020
241,287
253,107
265,505
278,511
292,155
306,467
-
$
150,000
350,000
600,000
700,000
-
$ 16,300,000
$
1,961,565
$
3,038,357
$
1,800,000
$
$
185,255
185,255
185,255
185,255
$
317,635
317,635
317,635
317,635
$
187,300
384,300
627,300
714,700
1,288,500
1,316,750
1,343,500
1,368,750
1,390,250
185,255
317,635
1,454,500
185,255
317,635
1,904,500
185,255
317,635
2,343,250
185,255
317,635
2,762,000
185,255
317,635
2,662,000
185,255
317,635
2,856,000
185,255
317,635
-
185,255
317,635
-
185,255
317,634
-
185,255
-
185,255
-
185,255
-
185,255
-
92,629
-
$ 20,690,000
-
$
3,241,964
$
4,129,254
$
$
1,100,000
1,250,000
1,500,000
1,750,000
2,000,000
2,000,000
2,250,000
2,500,000
2,750,000
-
$
1,100,000
850,000
1,000,000
-
$ 12,600,000
-
$
$ 17,100,000
$
2,950,000
$ 12,600,000
$ 46,725,000
$ 134,158,763
$
$
1,159,295
887,185
1,020,100
-
$ 12,877,200
-
$
$
624,188
624,188
624,187
624,187
1,345,000
1,450,000
1,575,000
1,710,000
1,775,000
1,865,000
1,960,000
2,055,000
2,160,000
2,265,000
2,380,000
2,500,000
2,575,000
2,650,000
2,730,000
2,870,000
3,010,000
3,160,000
3,270,000
3,420,000
TOTALS
2,063,283
3,321,550
3,377,375
3,441,875
$
20,970,275
8,446,569
9,120,938
5,863,407
6,270,020
5,863,087
6,373,238
7,295,374
7,338,433
7,487,462
8,187,517
5,798,654
6,215,931
3,267,930
3,401,929
3,516,494
3,691,662
3,774,843
3,860,000
3,995,000
3,420,000
26,041,643
12,867,357
13,252,360
9,659,795
-
1,724,187
-
-
3,511,175
9,869,958
1,842,562
-
-
3,497,600
9,238,381
2,053,500
-
-
3,496,600
9,502,297
2,250,250
-
-
3,495,975
10,147,202
2,438,125
-
-
3,490,600
9,895,053
2,365,125
-
-
3,490,225
9,729,177
2,542,125
-
-
3,484,600
10,101,053
1,913,600
$ 23,282,624
2,710,000
-
-
3,483,475
7,417,302
2,860,000
-
-
3,506,475
7,594,473
-
$
-
-
3,066,580
$ 12,877,200
3,505,350
4,418,543
3,501,975
4,441,449
3,473,975
4,413,183
3,473,975
4,411,886
3,466,975
4,309,510
3,486,425
4,232,112
3,467,550
3,481,987
4,207,957
3,481,987
$ 71,519,020
$ 179,232,678

2012_cafr - City of Charleston

Transcription

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