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COUNCIL MEETING

ITEM I. B.

CITY OF CAYCE, SOUTH CAROLINA

COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDING JUNE 30, 2019 ITEM III. A.
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CITY OF CAYCE, SOUTH CAROLINA

COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED JUNE 30,2019 WITH
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REPORT OF INDEPENDENT AUDITOR

Issued by: Finance Department
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CITY OF CAYCE, SOUTH CAROLINA

CITY OF CAYCE, SOUTH CAROLINA

COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED JUNE 30, 20I 9 CONTENTS INTRODUCTORY SECTION
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Letter of Transmittal ................................................................................................................. i List of Principal Officials ........................................................................................................ iii

Certifi.cat of Achievement for Excellence in Financial Reporting......................................... ': Orgamzatwnal Chart ...... .. . . .. . .. . . . . .. . . ... . . . . . .. . ........... .. . . . . . ... . . ... .. . . . . .. . ... . . . . . . .. . . . . . ... . . .. . . ......... vm

FINANCIAL SECTION
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Report of Independent Auditor ............................................................................................. 1-3 Management's Discussion and Analysis ............................................................................ 4-13

Basic Financial Statements Govermnent-Wide Statement ofNet Position ............................................................................................... 14-15 Statement of Activities........................................................................................................... 16 Governmental Funds Balance Sheet . . . .. . . ... . . . ...... .. . . .. . . . . . . . .. . . . .. . . . . ... . .. . . . . . .. . ... . ... . . . . ... . . .. . .. . .. . .. . ...... .. ..... .. . .. . . .. . . .. ... 17-18 Statement of Revenue, Expenditures and Changes in Fund Balances ........................... 19-20 Proprietary Fund Balance Sheet ................................................................................................................. 21-22 Statement of Revenue, Expenses and Changes in Fund Net Position .................................. 23 Statement of Cash Flows................................................................................................. 24-25
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Fiduciary Funds Statement of Fiduciary Net Position .................................................................................... 26

Notes to Financial Statements ........................................................................................... 27-70

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Required Supplementary Information (Other than Management's Discussion and Analysis

No additional detail provided

Budgetary Comparison Schedule- General Fund ............................................................ 71-73 Schedule of Change in the City's Total OPEB Liability and Related Ratio's ......................... 74 Schedule of the City's Proportionate Share of the Net Pension Liability- SCRS ................... 75 Schedule of the City's Contributions- SCRS ......................................................................... 76 Schedule of the City's Proportionate Share of the Net Pension Liability- PORS .................. 77 Schedule of the City's Contributions- PORS ....................................................................... 78 Notes to Required Supplementary Information ................................................................. 79-80

CONTENTS -CONTINUED- OTHER FINANCIAL INFORMATION
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Combining 'Non-Major' Governmental Financial Statements Combining Balance Sheet- Non-Major Governmental Funds .............................................. 81 Combining Statement of Revenue, Expenditures and Changes

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in Fund Balance- Non-Major Goverl111lental Funds ........................................................... 82 Individual Fund Financial Statements: General Fund Balance Sheet . .... . . . . . . ... . . . . . . . . .. . . . . . . . . .. . . . .. . . . . . . . . . . .... . . . . . .. . . .. . . . .. . . . . .... . ... . . .. . ... . . . . . ... . . .. . . . ... . . . . .. . . . . . .. . . 83 Schedule of Revenue, Expenditures and Changes in Fund Balances-

Budget and Actual . . .. . . . . . .. ... . . . . . . . . . .. . . . .. ..... . . . . ..... . .. . . .. . . . . . . .. . . .. .. .. . . .. . . . . . . ... . . . . . .. . . . .. . . . .. . . . . .. . . . . . . . . . 84 Schedule of Revenue- Budget and Actual ....................................................................... 85-86 Schedule of Expenditures- Budget and Actual ............................................................. 87-100

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Special Revenue Funds Combining Balance Sheet ..................................................................................................... 101 Combining Statement of Revenue, Expenditures and Changes in Fund Balances .. .. .. .... .. .. . 1 02

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Debt Sen'ice Fund Balance Sheet . ... . . . . . .. .... . .. .. . . . . . . . .... . .. . .... . . . . . . . .. .. . . . . .. . . . . . .. . .... . ... . .. . . .. . . ... . .. . . . .. . .. . . ... . .... . . .... . ... . . . . . 1 03 Statement of Revenue, Expenditures and Changes in Fund Balance ................................... 104

Capital Projects Fund Balance Sheet ........................................................................................................................ 105 Statement of Revenue, Expenditures and Changes in Fund Balance ................................... 106

Wate1 and Sewer Utility Fund Balance Sheet ... . . .. . .. . . . .... . . . ..... . ... . . . . . ... . . . . ...... . . . . . . .. . ... ... . .. . . ... . .. . .... . ... . . .. . ... . .. . ... . . .. . ..... . . .... . . . . . .. 1 07 Statement of Revenue, Expenses and Changes in Fund Net Position .... .. .. .... .. .. .. .... .. .... .. .. .. 1 08 Schedule of Operating Expenses - Budget and Actual .. .. .... .. .. .. ...... .. ...... .. .... .. .. .. .... .... 1 09-114
Tagged Passions:sewer, budget, utility, capital spending, Utility, and Capital Spending

Agency Funds Statement of Changes in Assets and Liabilities 115

Capital Assets Used in Operations of Governmental Funds Statement of Changes in Capital Assets used in Operations of Governmental Funds .......... 116

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Schedule of Changes Long-Term Debt Schedule of Bonds, Notes, and Other Long-Term Debt Outstanding .................................. 117

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Victim's Rights Assistance Schedule of Court Fines, Assessments and Surcharges ........................................................ 118

CONTENTS -CONTINUED- STATISTICAL SECTION (Unaudited and not covered by the Report of Independent Auditor) Net Position by Component- Last Ten Fiscal Years ............................................................... 119 Changes in Net Position- Last Ten Fiscal Years ............................................................. 120-121 Program Revenue by Function- Last Ten Fiscal Years ........................................................ .122 Fund Balances- Governmental Funds- Last Ten Fiscal Years .............................................. 123 Changes in Fund Balances- Govermnental Funds- Last Ten Fiscal Years ................... 122-125 Assessed Value and Estimated Actual Value of Taxable Property- Last Ten Fiscal Years ... 126 Property Tax Rates- Direct and Overlapping Governments- Last Ten Fiscal Years ............ 127 Principal Property Tax Payers- Comparison of Years 2019 to 2010 ..................................... .128 Property Tax Levies and Collections- Last Ten Fiscal Years ................................................. l29 Ratios of Outstanding Long-Term Debt by Type- Last Ten Fiscal Years .............................. 130 Ratios of General Bonded Debt Outstanding- Last Ten Fiscal Years .................................... 131 Total Direct and Overlapping Debt .......................................................................................... 132 Legal Debt Margin Information- Last Ten Fiscal Years ......................................................... 133 Pledged Revenue- Revenue Bond Coverage Water and Sewer Enterprise Fund- Last Ten Fiscal Years ............................................................................... 134 Construction Values- Last Ten Fiscal Years ........................................................................... 135 Demographic and Economic Statistics ..................................................................................... 136 Principal Employers .................................................................................................................. l37 Full-Time Equivalent City Government Employees by Function/Program- Last Ten Fiscal Years ............................................................................................................................ 138 Operating Indicators and Capital Assets by Function/Program- Last Ten Fiscal Years .................................................................................................................... 139-140
Tagged Passions:funding, construction, legal, sewer, taxes, Taxes, utility, bond, Utility, program, water, property, audit, rates, property tax, and court

CITY OF CAYCE, SOUTH CAROLINA

INTRODUCTORY SECTION

CITY OF CAYCE, SOUTH CAROLINA

Mayor El ise Partin

Mayor Pro-Tem Tara S. Almond

James E. Jenkins

City Manager Tracy Hegler ' ' c;ty M' '9 Cayce James E. Crosland Time for Life

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Letter of Transmittal

To the Honorable Mayor, Members of City Council, and the Citizens of Cayce: We are pleased to submit the Comprehensive Almual Financial Report of the City of Cayce, South Carolina for the Fiscal Year Ended June 30, 2019 (FY 20 19). The report contains a comprehensive analysis of the City's financial position and activities for the period. Tltis report is presented in three sections: 1) Introductory Section consisting of this transmittal letter, a listing of City officials, and the organization structure; 2) Financial Section, which consists of the independent auditor's report, management's discussion and analysis, basic financial statements, notes to the financial statements, required supplemental information along with detailed combining and individual fund statements; 3) Statistical Section, which contains pertinent financial and general infonnation indicating trends for comparative fiscal periods.
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Responsibility for both accuracy of the data and the completeness and fairness of the presentation, including all disclosures, rests with the City of Cayce. We believe the enclosed information is accurate in all material aspects, and that it is presented in a manner designed to fairly set forth the financial position and results of operation of the various funds of the government in accordance with accounting principles generally accepted in the Uttited States of Alnerica (GAAP); and that all disclosures necessary to enable the reader to gain an understanding of the City's financial activity have been included. Management has established and maintains a system of internal control to provide for tlus assurance.

In accordance with Section 5-13-30 of the South Carolina Code of Laws, the City of Cayce's financial statements have been audited by the finn of Robert E. Milhous, C.P.A., P.A. and Associates. The goal of the independent audit was to provide reasonable assurance that the financial statements are free of material misstatement. The auditor's report in the Financial Section provides a discussion of the audit, procedures and their opittion. The independent auditor has rendered an umnoclified opinion on the City of Cayce's financial statements for the year ended June 30, 2019 in that they are fairly presented in accordance with GAAP. The Management's Discussion and Al1alysis Section of this report contains discussion on the City of Cayce's current financial activities for the year ended June 30, 2019.
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Profile of the Government

The City of Cayce (the City or Cayce ) was incorporated in 1914 and is located along the Congaree River in Lexington and Richland counties in the central midlands of South Carolina. The City serves a population of approximately 14,086 and is empowered to levy a propet1y tax on both real and personal property located within its corporate limits. It is also empowered by State Statute to extend its corporate limits by voluntary annexation, which occurs periodically when deemed appropriate by the City Council.
Tagged Passions:council, taxes, Taxes, watershed, property, and annexation

i
1800 12th Street I PO Box 2004 I Cayce SC 29171

P 803 796 9020 I F 803 796 9072 caycesc.gov The City operates under a council-manager form of government. Policy making and legislative authority are vested with the City Council comprised of a mayor and four council members (elected from single member districts). The City Council is responsible, among other things, for passing ordinances, adopting a budget, hiring the City Manager and selecting the independent auditor to audit the financial statements. The City Manager is responsible for carrying out the policies and ordinances of the City Council, overseeing the day-to-day operations of the City and appointing the heads of the various departments. The City is empowered to levy a property tax on both real and personal properties located within its boundaries. Such taxes are levied and collected by Lexington County and Richland County and remitted to the City. The ammal budget serves as the foundation for the City's financial planning and control. The South Carolina General Statutes require all govennnental units to adopt a balanced budget by July 1 of each year for all funds for which an annual budget is required. Activities for the General Fund, and the Water and Sewer Utility Fund are budgeted mmually. The annual budget is prepared by Fund and depmiment. The level of budgetary control (that is, the level at which expenditures cannot legally exceed the appropriated amount) is established by department within an individual fund. The City Manager presents the proposed budget to Council for review, and approval. The City Manager may make transfers of appropriations within each fund. Budget-to-actual comparisons are provided in this repmi for each governmental fund for which an appropriated budget has been adopted. As demonstrated by the statements and schedules included in the financial section of this report as Required Supplementary Information, the City continues to meet its responsibility for sound financial managetnent. The City of Cayce provides a full range of services including police and fire protection, residential solid waste removal services, water and sewer services and recreational activities. The City operates under a July 1 '' to June 30' fiscal year. During the spring of each year, the budget process begins with department heads submitting requests and plans to the City Manager who is responsible for presenting the budget request to City Council. A detailed description of the budget process is included in the Notes to Budgetary Comparison of the Required Supplementary Information section in this report. Legislative

Tagged Passions:planning, funding, ordinance, finance, council, sewer, streets, budget, appointments, taxes, Taxes, utility, solid waste, Utility, public safety, services, water, property, administrator, manager, audit, policy, financial report, property tax, and recreation

The Mayor and four members of City Council are elected to staggered four year terms. Elections are held in November of even numbered years. The Mayor and Council make policy and enact laws, mles and regulations in order to provide for future community and economic growth. Additionally, the Council provides the necessary suppmi for the orderly and efficient operation of City services.

ii At June 30, 2019, elected officials were as follows: MAYOR Elise Partin elisepat1in@outlook.com Telephone: 803-361-8280

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MEMBERS OF COUNCIL

District 1 Tara Almond almondcaycecouncil@gmail.com Telephone: 803-309-1564 District 2 James Skip Jenkins skip jenkins@hotmail.com Telephone: 803-730-2601 Factors Affecting Financial Condition District 3 Eva Corley eacorley22@gmail.com Telephone: 803-479-0097 District 4 Phil Carter phillipacarter@yahoo.com Telephone: 803-518-93 84 Accounting standards require management to prepare a narrative overview and analysis to accompany the basic financial statements. This narrative, entitled Management's Discussion and Analysis (the MD A ), is a part of the Financial Section of this report, contains a discussion ofthe City's current financial condition and activities for the year ended June 30, 2019, and can be found immediately following the Report of Independent Auditor. However, the information presented in the MD A and the basic financial statements is perhaps best understood when it is considered from the broader perspective of the specific environment within which the City operates. The below section of the letter regards factors which affected the City's financial condition and operations thereto, and is designed to complement the MD A as follows. Local Economy The City of Cayce is located near Columbia, South Carolina which is the state capital and is part of the greater Columbia Metropolitan area of South Carolina. This area has been experiencing stable economic conditions. The City and its neighbors, the cities of Columbia and West Columbia, have built a regional park system along the banks of the Congaree River. The pmtionlocated in the City is known as the Cayce Riverwalk Park and it is part of the Three Rivers Greenway project. It is located from the border of the City of West Columbia to the Timmerman Trail that connects to the Lexington County Recreation and Aging Commission Tennis Center next to l-77. This is a joint effmt among several agencies. SCAN A Corp., now Dominion Energy, has also connected their corporate headquarters to the Cayce Riverwalk through the Timmerman Trail for the enjoyment of their employees and visitors. Due to the flooding throughout the Midlands in October 2016, a section of the park has undergone repairs. This was funded through The City of Cayce and FEMA matching funds, and was completed in February 2019. Most of the FEMA matching funds have been received, and we do expect the rest in the next fiscal year. iii The Congaree River has always played a dominant role of strategic importance in Cayce's development from the early days when barge and boat traffic from the low country were a part of eve1yday commerce on the river. Cayce became an outpost for this trade. The Cayce Riverwalk Park includes a public nature park along the river with amenities such as lighted boardwalks and concrete walkways, picnic shelters, park benches, and river over-looks with magnificent views of the Columbia skyline. Development on both sides of the river is a driving force in the continuing economic development of the City of Cayce. In August 20 I 7, the City issued an 8,000,000 Tax Increment Financing (TIF) Revenue Bond to obtain funds to develop a portion of the City. This is enhancing economic development to include the demolition and redevelopment of parcels along Knox Abbott Drive, electric utility improvements and street-scaping projects. Expanding the Cayce Riverwalk Park and connecting it with local commercial businesses, along with expanding and upgrading the regional wastewater treatment plant, has positioned the City to participate in the continued economic growth that is occurring in the Columbia Metropolitan area. Economic development on the 12' Street Extension corridor continues. The Lexington County Medical Park that was finished in 2018 will continue to add to the City's tax base and enhance the master plan. The townhome project known as Otarre Point was completed in 2018, adding 299 upscale townhomes, and construction was completed last year on a I 00 unit Marriott Hotel. An approximately 60 acre tract of land, sometimes referred to as Otarre Center, is still currently under contract to be sold. The proposed development includes approximately 300,000 square feet of retail space of an outlet shopping mall. A development of this type and size will serve as a catalyst for the development of the surrounding area and supporting corridors. Matheson Gas and Liquid Oxygen has submitted drawings for new construction in 2020. This company will be suppmting CMC Steel and will help to grow the prope1ty tax and business license base. Construction was completed last fiscal year on Knox Abbott for a 224 unit upscale apartment community called The Tremont, recently renamed Advenir at One Eleven. Permitting for a 22 unit upscale single family housing development called Congaree Bluff off of Axtell Drive was issued and construction is continuing, with over half of the units already sold. In December 2019 Steel Hands Brewery opened. This san on premises brewmy and restaurant that manufactures their own brand of beer to sell to the public and to other commercial businesses in the area. The Southern First Bank building at the corner of Knox Abbott Dr. and Axtell Dr. was the first development in the proposed The Brickworks project that is being developed and built by Brickworks Associates, LLC. New construction associated with this project could total 40 million and include 300,000 square feet of office, retail, and residential construction that will extend to the Congaree River and tie into the Cayce Riverwalk. An upscale apartment community similar to Advenir at One Eleven called Indigo at Brickworks is under construction with the first 3 buildings finished and one more expected to be finished in February 2020. When all apmtments are finished, there will be 186 units available. The City started the Knox Abbott Streetscape Project in May 2019 and expects to finish in early 2020. We were also happy to see a new Starbucks coffee shop open up on Knox Abbott. We believe this will help breed new restaurants and will continue to enhance the Knox Abbott corridor. The City of Cayce has established and is now developing an Art District to encourage an artist community and pre-vitalize the historic downtown State Street area.
Tagged Passions:Homebuilder, dominion energy, alcohol, funding, construction, business, finance, council, TIF, sewer, economic development, strategic, boards and commissions, streets, taxes, Taxes, arts, utility, development, bond, restaurants, historic, Utility, contract, hotel, downtown, Conservation, electric, environment, natural gas, watershed, streetscape, flooding, plant, parks, ports, boating, trails, Development, property, demolition, commercial, audit, license, trade, financial report, corridor, FEMA, business license, energy, traffic, economy, growth, recreation, and housing

Other known projects include the Saxe Gotha Industrial Park that Lexington County is continuing to expand in the unincorporated area abutting Cayce City Limits. The City of Cayce has agreements in place to provide water and sewer service to the industrial park. This more than 400 acre industrial park is being developed off of 12' Street and will extend almost to the 12' Street interchange oflnterstate 77 at Exit 2. Lexington County has expanded 12' Street to four lanes to accommodate the expected growth.

IV As most know, Amazon has a distribution center within the Industrial Park and, though not within the City of Cayce, is having a beneficial impact on Cayce and the surrounding area. Nephron, a pharmaceutical company built within the Industrial Park, has also helped maintain good water and sewer sales.

Tagged Passions:sewer, streets, sale, utility, industrial, Utility, water, parks, internet retailers, and growth

Lexington School District 2 has finished the Brookland Cayce High School Arena. This arena is also an event space that will bring various tournaments into the City and help develop local economic growth. Lexington School District 2 finished constmction on a new Career and Technology Education Center (Innovation Center) in October 2019. This new innovative career center will be another draw for employers to the area.

The City continues providing water and sewer service to the South Carolina State Farmer's Market. The farmer's market, relocated from Bluff Road in Richland County (across the street from USC's William Brice Stadium) to Lexington County on US Highway 321, continues to experience small growth. Long-Term Financial Planning Revenue forecasts for the next several years suggests that new residential and commercial construction and continued economic growth throughout the City and region will keep pace with the operational needs of the various depmtments. To help provide the highest standards for our residents, the City Council did implement a Hospitality Tax that is being used for the upkeep and expansion of our Parks system. The City finished the development of the Cayce Riverwalk Park on the Congaree River through the extension of the Parkway to I-77last fiscal year. The City pmtnered with the River Alliance, Depattment ofNatural Resources, S C Parks Recreation and Tourism, Lexington County and SCAN A Corp to establish the 12,000 Year History Park . This should continue to attract local economic interest and grow the City's tourism. 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 Cayce for its Comprehensive Annual Financial Report (CAFR) for the Fiscal Year ended June 30, 2018. The Cettificate of Achievement is a prestigious national award recognizing conformance with the highest standards for preparation of state and local government financial reports.
Tagged Passions:planning, recognition, construction, finance, council, sewer, market, expansion, streets, agriculture, taxes, Taxes, utility, development, University of South Carolina, tourism, Utility, events, water, Technology, watershed, parks, Development, technology, commercial, education, financial report, stadium, history, hospitality tax, growth, and recreation

In order to be awarded a Certificate of Achievement, a government unit must publish an easily readable and efficiently organized comprehensive annual financial report, whose contents conform to program standards. A CAFR must satisfy both generally accepted accounting principles and applicable legal requirements.

A Certificate of Achievement is valid for a period of one year only. The City of Cayce has received a Certificate of Achievement every year since the June 30, 2003, CAFR. We believe our current repott continues to conform with the Certificate of Achievement Program requirements, and we are submitting it to the GFOA. The Community Rating System (CRS) is a voluntmy program developed by the Federal Emergency Management Association (FEMA) to encourage communities to improve storm water and flood plain management that exceed the minimum National Flood Insurance Program requirements. During FY 10, the City began participating in this program and has achieved a Class 9 Rating, which awards residents of the community with a 5 discount on flood insurance premiums. The City continues to submit paperwork yearly which we hope will increase the discount. v Internal Control The City's management appreciates the necessity for a comprehensive framework of internal control as defined by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). To that end, the City strives to maintain a control environment that supp01ts continuous risk assessment, the proper control activities, reliable and secure information and communication, and the appropriate monitoring to ensure the effectiveness and efficiency of operations, plus the reliability of financial reporting and compliance with applicable laws and regulations. Because the cost of a control should not exceed the benefits to be derived, the objective is to provide reasonable, rather than absolute assurance, and that the financial statements are fi ee of any material misstatements. As part of the City's overall intemal control environment, the City establishes specific administrative and accounting policies and procedures for its departments and personnel. Through the Finance Depmtment, the City accounts for all of its financial activities via a comprehensive ledger system. Monthly reconciliation of accounts along with executive review of budget-to-actual reports are pmt of the City's routine control policies to ensure a high level of financial integrity as well as compliance with its budget, and applicable laws and regulations. Budgetary and Accounting Policies By June 301h of each year, the City enacts, through passage of an ordinance, a legal budget along with the establishment of property tax levy (millage) for the upcoming fiscal year. Annually, the City gathers information about assessed values of real and personal prope1ty located within the City limits. The total assessments are then applied to the applicable tax rates in order to determine estimated tax revenues. The City's 2018-2019 budget appropriated General fund expenditures based on estimated revenues for the fiscal year. The Water and Sewer Utility Fund (an Enterprise Fund) provides for budgeted expenses based on estimated revenues generated from rates charged for providing utility-related services to its customers. Annually, the City Council reviews its utility rates through a comprehensive assessment and analysis of its rate structure. The City operates its other funds under informal budgets established and monitored by the City Manager. Procedures associated with the development and passage of the annual budget is more fully described in the Notes to the Budgetary Comparison of the Required Supplementary Information section of this repmt. The budgetary process and significant accounting policies of the City were consistent with the previous year and are more fully described in Note I to the financial statements. The City continues to budget actuarial effects associated with GASB 68, Accounting and Financial Reporting for Pensions; however, they are presently unfunded. The City implemented GASB Statement 75, Accounting and Financial Reporting for Post-Employment Benefits Other Than Pensions, which became effective for the year ended June 30, 2018. Under GASB 75, the City will be required to obtain biennial actuarial valuations. Disclosures related to actuarial valuations and accounting treatment of the benefit in effect at June 30, 2019 are described in Note 9. VI Aclmowledgements The preparation of this report could not be accomplished without the dedicated endeavors of the Finance Depm1ment and our independent auditor (Bob Milhous and his staff). We would also like to express our appreciation to the staff of the City. Further appreciation is extended to the Mayor and City Council for their encouragement, assistance, and approval. Respectfully submitted, Tracy Hegler, AICP City Manager Vll Organizational Chart Citizens I Mayor Council City Manager Asst to tbe City Manager l D1:-tctorofHR ) P D \ M mT'e35 Jrtr l Dlto Utd,ties -- : Di ot : I i II s,,;,w., PsbMsrl81 I I I g I SolfAoa I :,I 1 Elootl I San:tation P:trks

Tagged Passions:funding, regulation, ordinance, finance, council, legal, sewer, boards and commissions, budget, retirement, taxes, Taxes, utility, development, personnel, Utility, risk, procedure, services, program, emergency, water, Conservation, insurance, environment, employment, flooding, Development, communications, property, administrator, compliance, manager, audit, government efficiency, Communications, financial report, FEMA, rates, property tax, and stormwater

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No additional detail provided

Of5ei:tl City Engineer . I I Me:e7echs '---- C tb II ' I Business 0 EquipOper Opm:oo M lul License

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J Di:oiPuOiitSafey \ .'ct Die. 1- ' Aclr.-: .:..SS J Rc:CU.: FireU. I Sl' 'l Aa.vocnte I Firn Sgt. -1 SRO 6 PSO Firdi:;htcr I Dispatcher ?SO Government Finance Officers Association
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Certificate of Achievement for Excellence

in Financial Reporting Presented to
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City of Cayce South Carolina

For its Comprehensive Annual Financial Report for the Fiscal Year Ended
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Executive Director/CEO

ix

CITY OF CAYCE, SOUTH CAROLINA

FINANCIAL SECTION
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CITY OF CAYCE, SOUTH CAROLINA

REPORT OF INDEPENDENT AUDITOR

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CITY OF CAYCE, SOUTH CAROLINA

RoBERT E. MILHous, C.P.A., P.A. AssociATES A Proftssioual Associatio11 Of

CERTIFIED PUBLIC ACCOUNTANTS AND CONSULTANTS

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I2I EXECUTIVE CENTER DRIVE, SUITE 206, COLUMBIA, SOUTH CAROLINA 292IO PosT OFFICE Box 1960, CoLUMBIA, SouTH CAROLINA 29202

FAX: (803) 216-9498 Columbia

Phone: (803) 772-5300

REPORT OF INDEPENDENT AUDITOR

The Honorable Mayor and Members of City Council City of Cayce, South Carolina
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Report on the Financial Statements

Myrtle. Beachj Colllvay Phone: (843) 488-5301 I have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and aggregate remaining fund information of the City of Cayce, South Carolina (the City ), as of and for the year ended June 30, 2019, 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 My responsibility is to express an opinion on these financial statements based on my audit. I conducted my audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that I plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of 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. Iri 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, I 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. I believe that the audit evidence obtained is sufficient and appropriate to provide a basis for my audit opinion. - CONTINUED-
Tagged Passions:business, finance, risk, procedure, audit, and financial report

1
Member American Imtitute of Certified Public Accotmtants sout J Carolina Associatio11 of Certified Public Accotmt lllts

Opiniom

Unmodified opinion In my opinion, the basic financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Cayce, South Carolina, as of June 30, 2019, and the respective changes in financial position and cash flows, where applicable, thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

No additional detail provided

Tagged Passions:business, finance, and financial report

Other Matters

Required Supplemeutmy Iufonuatiou Accounting principles generally accepted in the United States of America require that the accompanying Management's Discussion and Analysis and the Required Supplemental Information as listed in the table of contents be presented to supplement the basic financial statements. Such infonnation, although not a pmt of the basic financial statements, is required by the Govemmental Accounting Standards Board who considers it to be an essential pmt of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. I have applied certain limited procedures to the required supplementmy information, in accordance with auditing standards generally accepted in the United States of America, which consisted of inquires of management about the methods of preparing the information and comparing the infonnation for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge obtained during the audit of the basic financial statements. I do not express an opinion or provide any assurance on the information because the limited procedures do not provide me with sufficient evidence to express an opinion or provide any assurance.
Tagged Passions:finance, historical, procedure, audit, and financial report

Other luformatiou My audit was conducted for the pmpose offmming an opinion on the financial statements that collectively comprise the City's basic financial statements. The accompanying supplementary information, of the combining and individual fund financial statements and other financial schedules as listed in the table of contents as Other Financial Infmmation, is presented for pmposes of additional analysis and is not a required part of the basic financial statements of the City of Cayce, South Carolina.

The combining and individual fund financial statements and other financial schedules are the responsibility of management and were derived from and relates 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 celiain 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 my opinion, the combining and individual fund financial statements and other financial schedules are fairly stated, in all material respects, in relation to the basic financial statements as a whole.
Tagged Passions:finance, procedure, audit, and financial report

2
Summarized Compamtive Iuformatiou The prior year summarized comparative information presented in the individual fund financial statements and schedules has been derived from the City's 2018 audited financial statements, and in my report dated Janumy 19, 2019, I expressed an unmodified opinion on those individual fund financial statements and schedules.

Tagged Passions:finance, audit, and financial report

The introductory and statistical sections of this report have not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, I do not express an opinion or any other form of assurance on this information.

No additional detail provided

Tagged Passions:finance, procedure, audit, and financial report

( December 20,2019 Columbia, South Carolina

3
CITY OF CAYCE, SOUTH CAROLINA

City of Cayce, South Carolina Management's Discussion and Analysis

Year Ended June 30,2019 This section of the City of Cayce, South Carolina's (the City ) mmual financial report presents our discussion and analysis of the City's financial performance during the fiscal year that ended on June 30,2019. Please read it in conjunction with City's financial statements, which follow this section. FINANCIAL HIGHLIGHTS Per the Government-wide Statement of Net Position, the City's total assets and deferred outflows at year end June 30, 2019 were 207.6 million and exceeded total liabilities and deferred inflows by 109.3 million. Of the total net position at June 30,2019, there was a 10.0 million deficit in unrestricted funds available to support short term operations of the City. Per the Government-wide Statement of Activities, the City's total net position increased by 3.0 million for the year ended June 30, 2019. The Governmental Activities resulted in a net increase of 75,498, while the Business-type Activities contributed a positive net change in net position of 2.9 million, which was substantially funded by capacity charges and other capital contributions recognized during the year. The City continues to comply with the new accounting principles - Goverrunental Accounting Standards Board Statement (GASB) No. 68, Accounting and Financial Reporting for Pensions, which required the reporting of a Government-wide liabilities of 19.9 million (plus deferred inflows of .8 million and less deferred outflows of 5.5 million) at June 30, 2019. The City's post-employment benefits other than pensions (OPEB) equaled 3.4 million at June 30, 2019. Overview of the Financial Statements
Tagged Passions:funding, recognition, business, finance, retirement, performance, employment, and financial report

Management's Discussion and Analysis (MD A) serves as an introduction to the City's basic financial statements. Those financial statements have three components: I) Government-wide financial statements, 2) Fund financial statements, and 3) Notes to the financial statements. This report also contains other required supplementary information in addition to the basic financial statements themselves.

No additional detail provided

Tagged Passions:finance and financial report

Government-Wide Financial Statements - The government-wide financial statements are designed to provide readers with a broad overview of the City's finances, in a manner similar to a private-sector business.

The Statement of Net Position presents information on all of the City's assets and liabilities and deferred inflows and deferred outflows, with the difference between the four 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 government's net position changed during the most recent fiscal year. All changes in net position are reported on the accrual basis of accounting when the underlying event gives rise to the change that occurs regardless of the liming of related cash flows.

Tagged Passions:business, finance, events, and financial report

4
Overview of the Financial Statements (continued) Government-Wide Financial Statements (continued) Thus, revenues and expenses are reported in this statement for some items that will only result in cash tlows in future fiscal periods (e.g., revenues receivable and earned but unused vacation leave). Both of the Government-wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (i.e., governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (i.e., business-type activities). The governmental activities of the City include general government, finance, planning and community development, public safety, public works, parks and museum, garage, and support services. The business-type activities of the City include a Water and Sewer Utility Enterprise Fund. The Government-wide financial statements can be found immediately following the discussion and analysis.

Fund Financial Statements - The Fund financial statements provide a more detailed look at the City's most significant activities. A fimd is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the City can be divided into three categories: Governmental funds, Proprietary funds, and Fiduciary funds.

Governmental funds- Govemmentalfimds are used to account for essentially the same functions reported as govemmental activities in the Government-wide financial statements. Most of the City's governmental services are accounted for in the Governmental funds. However, unlike the Government-wide financial statements, these funds focus on near-term il?flows and oll(f/ows 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. The Governmental Fund financial statements can be found immediately following the 'Govertll1lent-wide financial statements. Proprietary funds- Entelprise.fimds are used to report the same functions presented as business- t;pe activities in the Government-wide financial statements. The City uses enterprise funds to account for its water and sewer utility. Proprietary funds provide the same type of information and the same basis of accounting as the Government-wide financial statements business type activities, only in more detail. The basic Proprietary Fund financial statements can be found immediately following the 'Governmental Fund' financial statements.

Tagged Passions:funding, business, finance, legal, sewer, utility, Utility, services, water, compliance, and financial report

Notes to Financial Statements - The notes to the financial statements provide additional information that is essential to a full understanding of the data provided in both the Government- wide and Fund financial statements.

Required Supplementary Information -The City adopts an annual appropriated budget for its General Fund. The budget is a legally adopted document that incorporates input from the citizens of the City, the management of the City, and the decisions of the Council about which services to provide and how to pay for them. It also authorizes the City to obtain funds from identified sources to finance these current period activities. A budgetary comparison schedule has been provided for the General Fund to demonstrate compliance with this budget, and can be found in the section entitled Required Supplementary Information .

Tagged Passions:funding, finance, council, budget, services, compliance, and financial report

Other Financial Information- Following the basic financial statements, the notes to financial statements and the required supplementary information, this annual financial report also presents ce1iain detail financial data of individual fund statements and schedules.

No additional detail provided

Tagged Passions:finance and financial report

5
Government-Wide Financial Analysis

As noted earlier, net position may serve over time as a useful indicator of a government's financial position. In the case of the City, total assets plus deferred outflows of resources less liabilities, less deferred inflows of resources results in net position of 109.3 million at the close of.Tune 30, 2019. Below is a 'condensed' Statement of Net Position at June 30, 2019, which depicts the major components of the City's assets, deferred outflows, liabilities and net position (with comparative amounts for June 30, 2018). Assets and Deferred Outflows Cash and cash equivalents: Unrestricted Restricted Other current assets Other assets, net of accumulated
Tagged Passions:finance

amortization Capital assets, net of accumulated

depreciation Total assets Deferred outflows of resources: Deferred outflows related to OPEB Deferred outflows related to pensions
Tagged Passions:retirement

Losses on bond refundings Total deferred outflows of resources Total assets and deferred outflows

Liabilities, Deferred Inflows and Net Position Current liabilities Current liabilities payable from restricted assets Non-current liabilities Total liabilities Deferred inflows of resources: Deferred inflows related to

Tagged Passions:bond

pensions Total deferred inflows of resources Total liabilities, deferred inflows of

resources Net position: Net investment in capital assets Restricted Unrestricted (deficit) Total net position Governmental Activities 2019 2018 6,268,845 5,237.383 1,319,386 127,530 23,808,847 36,761,991 382,598 3,134,953 3,517,551 40,279,542 1,245,717 543,056 543.056 26,237,316 17,383.993 5,179,447 (8,521,214) 6,151,517 10,585,009 2,063,481 85,000 18.495,708 37,380,715 451,658 3,580.530 4,032,188 41,412,903 2,230,986 290,000 24,074.148 26,595,134 851,041 851,041 27,446,175 16,595,971 10,489,686 (13,118,929) Business-type Activities Totals 2019 2018 2019 2018 3.664,553 10,616,634 2.710,666 430,115 147,961,351 165,383,319 128,869 2,867,166 16,975,812 2,833,689 472,787 9,933,398 15.854.017 4,030,052 557,645 145,008,676 171.770.198 168,158,130 202,145.310 152,131 511,467 9,018,683 27,560,821 4,897,170 557,787 163,504,384 205,538,845 603,789 1,304,747 1.755,521 4,439,700 5,336,051 566.135 _ _ 67 1 ',7,.2 Tagged Passions:business, retirement, and investment

6
Government-Wide Financial Analysis (continued) By far the largest portion of the City's net position ( 104.8 million, or 95.9 ) reflects its net investment in capital assets (e.g., land, buildings, machinery, equipment, and vehicles), less any related debt used to acquire those assets that is still outstanding. The City uses these capital assets to provide services to its citizens; consequently, these assets are not available for future spending. Although the City's investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities.

Also a portion of the City's total net position, 14.5 million, or 13.3 represents resources that are subject to external restrictions on how they may be used, which includes resources for the City's redevelopment district plan and related debt service, law enforcement, and pensions (see Note 7 for further detail information). The remaining is a deficit in unrestricted net position (totaling 10.0 million in 2019), which if positive, may be used to meet the government's ongoing obligations to citizens and creditors. This deficit is a result of recording the net pension liability balance of 19.9 million (plus deferred inflows of .8 million, less deferred outflows of 4.4 million) in accordance with GASB 68 and recording the total other post-employment benefit liability of 3.3 million (less deferred outflows of 0.5 million) in accordance with GASB 75. Unrestricted net positon in Governmental Activities resulted in a deficit totaling 8.5 million in 2019 (as compared to a deficit of 13.2 million in 2018) primarily resulting from recording net pension liabilities in accordance with GASB 68, and total other post-employment benefit (OPEB) liability in accordance with GASB 75. Business-type Activities resulted in an unrestricted deficit of 1.5 million in 2019 (as compared to 1.4 million in 2018). This is primarily due to increases in the net pension liabilities and long- term debt related to future improvements to the Water and Sewer Utility and their respective infrastructures.
Tagged Passions:Homebuilder, business, equipment, finance, sewer, retirement, utility, Utility, services, water, employment, and investment

7
Government-Wide Financial Analysis (continued) The City's components of changes in net position (condensed from the Statement of Activities) for FY 2019 and FY 2018, are illustrated in the following table:

Governmental Activities Business-type Activities Totals -- - --------------- -- -- --- -- Revenue Program Revenue: Charges for services 1,479,312 1,229,471 18,442,059 17,431,831 19,921,371 18,661,302 Operating grants and General revenue: Property taxes 4,815,538 4,436,724 4,815,538 4,436,724 Accommodation and hospitality Total revenue 13,612,810 14,601,806 21,175,828 20,341,79 7_ 34,788,638 34,943,603 Expens _s General government 432,879 370,008 432,879 370,008 Information technology 67,575 115,260 67,575 115,260 Finance 86,242 83,901 86,242 83,901 Public safety 7,434,457 6,869,407 7,434,457 6,869,407 Public works 1,365,137 1,663,974 1,365,137 1,663,974 Planning and development 1,334,661 1,267,474 1,334,661 1,267,474 Parks and museum 889,747 903,950 889,747 903,950 Garage 262,379 266,391 262,379 266,391 Depreciation (unallocated) 1,389,879 1,032,413 1,389,879 1,032,413 Interest 274,356 266,732 274,356 266,732 Water and sewer utility 18,215,285 17,753,948 18,215,285 ____11253,948_ Total expenses 13,537,312 12,839,510 18,215,285 17,753,948 31,752,597 30,593,458 Changes in net position 75,498 1,762,296 2,960,543 2,587,849 3,036,041 4,350,145 Beginning net position 13,966,728 12,204,432 92,328,731 89,740,882 I 06,295,459 101,945,31_ _ Ending net position 14,042,226 13,966,728 95,289,274 92,328,731 109,331,500 106,295,459

Tagged Passions:planning, grant, business, finance, sewer, taxes, Taxes, utility, development, Utility, public safety, services, program, water, Technology, parks, Development, technology, Public Works, public works, property, information technology, property tax, and Information Technology

8
Government-Wide Financial Analysis (continued) Net changes in net position in Governmental Activities had a total increase of 75,498 in 2019 compared to an increase of 1.7 million in 2018, primarily due to reduced operating and capital grants and contributions. Changes in net position in Business-type Activities resulted in an increase of 2.9 million in 2019 compared to a 2.6 million increase in 2018, primarily due to fewer capital contributions received from developers (deeded infrastructure plus impact/capacity fees), and increases in pension expense.

Key Governmental Activities revenue highlights are as follows: Total Program Revenue equaled 1.7 million in 2019 (as compared to 2.7 million in 20 18), primarily due to reduced FEMA grant reimbursements. General Revenues totaled 11.9 million in 2019 and 11.9 million in 2018 due to increases in capital grants and contributions, and in taxes and business licenses revenue. Most functional expense categories saw increases in 2019, as compared to 2018, primarily due to increases in salary/wages and related benefits costs due to the implementation ofGASB 75 which changed the repotting for other post-employment benefits (OPEB). Public Safety expenses increased due to increased personnel and related expenses. Planning and Development expenses continued to increase due to the NPDES phase II project expenses. Governmental Activities expenses totaled 12.8 million in 2019 and 12.8 million in 2018 and most depmtments increased due to the implementation ofGASB 75 on reporting OPEB liabilities in addition to normal department increases. Key Business-type Activity revenue highlights are as follows: Total Program Revenue for services totaled 21.1 million in 2019 (compared to 20.7 million in 2018) resulting in an increase of .8 million (or 4.0 ), primarily due to increases in service rates. Expenses of operation and maintenance totaled 18.2 million in 2019 (compared to 17.7 million in 2018) resulting in an increase by .4 million (or 2.6 ) due to the normal increases in the water and wastewater treatment plants, septage and grease center costs to operate, and increases in pension related expenses. Expenses and Pt ogram Revenues - Governmental Activities - Governmental activities expenses (totaling 13.5 million in 2019) are funded in part by program-specific revenues of fees for services, grants and contributions. As shown below, Governmental Activities were overall funded by 14.7 'program revenues', leaving 85.3 to be funded by 'general revenues'. From the Statement of Activities, the following table details this activity for the City.
Tagged Passions:impact fee, planning, grant, business, finance, sewer, retirement, taxes, Taxes, utility, development, personnel, Utility, public safety, services, program, water, employment, plant, Development, license, FEMA, rates, and business license

General government Information technology Finance Public safety Public works Planning and development Parks and museum Garage Depreciation (unallocated) Interest

Totals (Expenses) (432,879) (67,575) (86,242) (7,434,457) (1,365, 37) (1,334,661) (889,747) (262,379) (I ,389,879) (274,356) (13,537,312) Program Revenue 50,336 103,449 1,986,932
Tagged Passions:planning, finance, development, public safety, program, Technology, parks, Development, technology, Public Works, public works, information technology, and Information Technology

9
Net (Expense)

(432,879) (67,575) (86,242) (6,378,889) (587,558)

(I ,284,325) (786,298) (262,379)

(1,389,879) (274,356) (II ,550,380) Required to be Funded by Funded by Program General Revenues Revenues --- 0.0 100.0 0.0 100.0 0.0 100.0 14.2 85.8 57.0 43.0 3.8 96.2 11.6 88.4 0.0 100.0 0.0 100.0 0.0 100.0 14.7 85.3 Government-Wide Financial Analysis (continued) As in prior years, depreciation expenses were not allocated to the City's functions due to non- detailed information available and are shown as a single line item in the Statement of Activities as unallocated , while non-departmental service support expenses were allocated by function in 2019. General Revenues by Source- Governmental Activities As shown in a table on the preceding page, General Revenues funded the City's Governmental Activities by 85.3 in the following categories. 2019 2018 Property taxes 4,815,538 4,436,724 Accommodation and hospitality taxes 1,272,104 1,268,973 State shared revenue 480,101 408,982 Licenses and related fees 4,893,838 5,302,089 Miscellaneous 164,297 488,807 Total 11,625,878 11,905,575 Overall, the City experienced a slight decrease in General Revenues (or 279,697less in 2019 than 2018) primarily due to prior-period business licenses and related fees collected/settled in 2018 and the reduced disaster recovery reimbursements.

Tagged Passions:impact fee, business, finance, taxes, Taxes, program, property, license, information technology, business license, property tax, hospitality tax, and Information Technology

Expenses and Program Revenues - Business-type Activities - The City's Water and Sewer Utility Enterprise Fund that comprises its Business-type Activities is used for all resources associated with supplying potable water and providing sewage treatment services to domestic, business and industrial customers within the City limits as well as some of the surrounding unincorporated areas of Lexington County. Operating revenues totaled 18.4million in 2019 (as compared to 17.4 million in 2018) and includes water sales and connection fees of 5.7 million and 11.5 million from sewer services and .8 million in septage and grease treatment services. Operating expenses totaled 16.8 million in 2019 (compared to 16.5 million in 20 18) resulting in an increase of 1.2 primarily due to increases in pension expense. Operating income at year ended June 30, 2019, totaled 1.7 million (as compared to 895,327 in 2018). Capacity charges, consisting primarily of system enhancement, capacity (impact) fees, and capital contributions from developers totaled 2.7 million in 2019 (as compared to 2.9million in2018), or a 6.4 decrease. Both the water and sewer customers accounts increased during 2019, water from 7,822 in2018 to 7,865 in 2019, while sewer customers grew from 12,714 in 2018 to 12,917 in 2019. The increases in customers resulted primarily from new development both in-city and outside-city. Consumption and revenue will not be significantly affected. As stated earlier, the change in net position of the Water and Sewer Utility Fund was primarily a result of increased charges for sewer, septage and grease pretreatment services, an increase in interest costs, decreases in capital charges and other contributions, and increases in pension expenses.

No additional detail provided

Tagged Passions:impact fee, business, sewer, sale, retirement, utility, development, industrial, Utility, services, program, water, and Development

10
General Fund Financial Analysis and Budgetary Highlights Of the City's Governmental Funds, the City's General Fund is the primary (and major) fund. As compared to 2018, actual General Fund revenues for 2019 totaled ll,079,761, compared to 12,163,842 in 2018, resulting in a decrease by 1,084,081 (or 8.9 ), due to decreases in business licenses and grants. Actual General Fund expenditures, net of Utility Fund overhead allocations and capital outlay, totaled 12,660,372 in 2019 compared to 12,347,121 in 2018. The General Fund's 'final' budgeted revenues totaled 11,280,673 and actual revenues achieved equaled ll,079,761, or .2 million less than budget primarily clue to decrease in business licenses and grants. The City had actual General Fund expenditures before Other Financing Sources (Uses) of 12,660,372 compared to a 'final' budget of 12,896,302 for a favorable budget to actual variance of .2million for the fiscal year ended June 30,2019.

Tagged Passions:funding, grant, business, finance, budget, utility, Utility, license, and business license

Decreases that contributed to several line-item expenditures being under final budget amounts in the General Fund include the installment purchase financing for vehicles and budgeted for in the sanitation, public safety, public works and garage equipment departments.

With continued pressures of state-mandated prope1iy tax millage 'caps', the City's final budget, before adjusting for fund balance appropriations, reflected a deficiency of estimated revenues over its appropriated expenditures before Other Financing Sources and Uses totaling 1.6 million. The General Fund's other financing sources and uses budget included 1.2 million in 20 19 from the General Fund's portion of State Accommodations and Hospitality Tax plus an installment purchase contract. The General Fund also allocates 1.8 million in overhead and indirect costs to the Water and Sewer Utility Fund. As a final result, actual expenditures were below budget. The General Fund had a decrease in fund balance of 389,369 for the year ended June 30,2019, primarily clue to reduction in business licenses (resulted from prior-year settlements) and less grant awards.
Tagged Passions:funding, grant, business, equipment, sewer, budget, taxes, Taxes, utility, solid waste, Utility, contract, public safety, water, purchasing, Public Works, public works, license, business license, hospitality tax, and settlement

11
General Fund Financial Analysis and Budgetary Highlights (continued) Details of the City's General Fund budget are shown in the section entitled Required Supplementary Information which follows the Notes to Financial Statements in this report. Below is a 'condensed' summary budget-to-actual table for fiscal year 2019 compared to 2018 actual amounts achieved.

General Fund Revenue Prope1iy taxes Licenses and permits Fines and forfeitures State shared revenue Current services Grants and other Interest income Total revenue Expenditures Current (net of Utility Fund overhead allocations and capital out Cl)): General government Information technology Finance Public safety Public works Community relations Planning and development Parks and museum Garage Non-depmimental and support services Debt service Capital outlay Total expenditltres Excess (deficiency) of revenue over (under) expenditures Other financing sources and (uses) Net change in fund balance Final Budget 3,647,000 4,956,150 240,200 372,500 1,283,028 779,795 2,000 11,280,673 485,473 97,946 81,859 7,080,374 1,349,644 143,526 755,318 912,788 248,357 34,896 I36,705 1,569,4I6 12,896,302 (1,6I5,629) I,205,629 2019 Actual 3,848,870 4,930,242 I87,075 395,772 I,348,045 365,IOO 4,657 II ,079,76I 524,29I 62,990 69,722 6,961,528 1,310,603 146,032 79I,548 832,604 240,245 (4,087) I55,480 I,569,4I6 I2,660,372 (1 ,580,6II) 1,I91,242 2018 Variances Favorable (Non-

Tagged Passions:planning, grant, finance, budget, taxes, Taxes, utility, development, Utility, public safety, services, Technology, parks, Development, technology, Public Works, public works, license, information technology, financial report, and Information Technology

favomb1c) -----'A 'ctuai -

No additional detail provided

20I,870 (25,908) (53, I25) 23,272 65,017

(4I4,695) 2,657 (200,9I2) (38,8I8) 34,956 I2,I37 I18,846 39,04I (2,506) (36,230) 80, I84 8, II2

38,983 (18,775)

235,930 3,420,752 5,387,772 181,171 39I,055 I,028,901 I,75I,469 2,722 12,163,842 448,499 105,329 56,895 6,304, I96 I,283,275 170,325 780,893 839,029 234,362 31,055 112,470 I,980,793 I2,347,I21

35,0 I8 (I83,279) (14,387) I,330,879

(410,000) (389,369) ;; 2;;0, 63;;;1 1,147,600

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General Fund Financial Analysis and Budgetary Highlights (continued) CAPITAL ASSETS AND DEBT ADMINISTRATION

No additional detail provided

Tagged Passions:finance and budget

Capital Assets- As of June 30, 2019, the City's capital assets for its Governmental Activities totaled 36.7 million, less accumulated depreciation of 12.9 million for a net carrying value of 23.8 million. For its Business-type Activities, total capital assets equaled 201.1 million, less accumulated depreciation of 53.2 million for a net carrying value of 147.9 million. The City's capital assets includes land, buildings, utility system improvements, machinery and equipment, park facilities, vehicles and furniture. The City's significant capital asset acquisition for the Governmental Activities included new vehicles, software upgrades, fire related equipment, and various building renovations and park improvements. In addition to capital infrastructure and plant improvements for the Business-type Activities (Water and Sewer Utility Fund), the City continues to maintain a strong maintenance and replacement program for infrastructure, machinery and equipment. Additional information on the City's capital assets can be found in Note 5 of this report.

Long-Term Debt- At the end of the current fiscal year, the City had total bonded indebtedness outstanding of its Governmental Activities of 8,070,572, consisting of the remaining balances of 7,425,000 Tax Increment Financing (TIF) Bond and 645,572 installment purchase notes. Business-type activities long-term debt totaled 61,187,416, consists of State Revolving Fund (SRF) loans totaling 50,954,399, revenue bonds totaling 9,355,000, and installment purchase contracts payable totaling 878,017 at June 30, 2019. Additional information on the City's long- term debt can be found in Note 6 of this report.

Tagged Passions:Homebuilder, business, equipment, TIF, sewer, taxes, Taxes, utility, bond, Utility, contract, program, water, purchasing, plant, parks, information technology, and Information Technology

Proceeds of the TIF Bonds continue to be used in Governmental Activities for various capital improvements in the City's Redevelopment District, accounted for the Capital Projects Fund. The bonds are secured by incremental propetty tax revenues generated within the Redevelopment District, plus a pledge of Net Revenues from the Water and Sewer Utility System resulting in a junior-lien of the Water and Sewer Utility.

REQUEST FOR INFORMATION This financial report is designed to provide a general overview of the City's finances for all those with an interest in its finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Office of the City Manager, City of Cayce, South Carolina.
Tagged Passions:finance, TIF, sewer, taxes, Taxes, utility, capital spending, bond, Utility, Capital Spending, water, administrator, manager, and financial report

13
BASIC FINANCIAL STATEMENTS

No additional detail provided

Tagged Passions:finance and financial report

CITY OF CAYCE, SOUTH CAROLINA

CITY OF CAYCE, SOUTH CAROLINA

STATEMENT OF NET POSITION

Primary Government Assets and Deferred Outflows Cun ent assets: Cash and cash equivalents Accounts receivable, net Note receivable- current pmtion Internal balances, net Inventories and prepaid items Total current assets Non current assets: Restricted cash and cash equivalents Bond deposits Capital assets not subject to depreciation Capital assets, net of depreciation Note receivable Other assets, net Total nonwcurrent assets Total assets Deferred outflows of resources: Deferred outflows related to OPEB Deferred outflows related to pensions Losses on bond refundings, net Total deferred outflows of resources Total assets and deferred outflows of resources Liabilities, Deferred Inflows and Net Position Current liabilities: Accounts payable Accmed expenses and other liabilities Accrued compensated absences -current portion Constmction contracts and retainages payable Accrued interest payable Unearned revenue, deposits and prepayments Installment purchase contracts payable - current pmtion Current liabilities payable from restricted assets Total current liabilities Governmental Business-type Activities Activities 6,268,845 3,664,553 1,081,143 2,470,134 26,197 56,510 (56,51 0) 181,733 270,845 7,588,231 6,375,219 5,237,383 10,616,634 47,530 14,323,341 29,682,164 9,485,506 118,279,187 49,506 80,000 380,609 29,173,760 159,008,100 36,761,991 165,383,319 382,598 128,869 3,134,953 1,304,747 566,135 3,517,551 1,999,751 40,279,542 167,383,070 408,113 190,240 323,516 154,978 145,416 83,333 11,961 68,268 11,713 2,348 50,823 66,108 294,175 337,470 300,000 4,343,912 1,545,717 5,246,657 - CONTINUED -
Tagged Passions:business, retirement, bond, contract, and purchasing

14
Total

9,933,398 3,551,277 26,197 452,578 13,963,450 15,854,017 47,530 44,005,505 127,764,693 49,506 460,609 188,181,860 202,145,310 511,467 4,439,700 566,135 5,517,302 207,662,612 598,353 478,494 228,749 80,229 14,061 116,931 631,645 4,643,912 6,792,374

CITY OF CAYCE, SOUTH CAROLINA

STATEMENT OF NET POSITION

- CONTINUED- Primary Government Liabilities, Deferred Inflows and Net Position (continued) Long-term (non-current) liabilities: Accrued compensated absences Installment purchase contract payable Uneamed revenue- future capacity charges and credits SRF loans and revenue bonds payable Net pension liabilities Total other post-employment benefit (OPEB) liability Total long-term liabilities Total liabilities Deferred inflows of resources: Defened inflows related to pensions Total deferred inflows of resources Total liabilities and deferred inflows of resources Net position: Net investment in capital assets Restricted for: Debt service Capital projects and redevelopment plan Tourism and community development Law enforcement Pensions and employee benefits Unrestricted (deficit) Total net position Total liabilities, deferred inflows and net position See accompanying notes to financial statements.
Tagged Passions:finance, retirement, development, capital spending, bond, tourism, contract, public safety, Capital Spending, employment, purchasing, Development, investment, financial report, and community development

15
Governmental Business-type Activities Activities Total

255,143 87,548 342,691 351,397 540,547 891,944 1,130,698 1,130,698 7,517,647 57,534,198 65,051,845 13,212,425 6,699,352 19,911,777 2,811,931 571,524 3,383,455 24,148,543 66,563,867 90,712,410 25,694,260 71,810,524 97,504,784 543,056 283,272 826,328 543,056 283,272 826,328 26,237,316 72,093,796 98,331,112 17,383,993 87,473,689 104,857,682 1,426,238 l,l86,086 2,612,324 2,048,940 7,634,362 9,683,302 843,192 843,192 17,885 17,885

Tagged Passions:business and 911

843,192 501,729 1,344,921 (8,521,214) ( 1 ,506,592) (I 0,027,806) 14,042,226 95,289,274 I 09,331,500

40,279,542 167,383,070 s 207,662,612 -0\ Functions and Programs Primary Government: Governmental activities: General government Information technology Finance Public safety Public works Planning and community development Parks and museum Garage Depreciation (unallocated) Interest Total governmental activities Business-tvpe activities: Water and sewer utility Total business-type activities Total primary government

Tagged Passions:planning, business, finance, sewer, utility, development, Utility, public safety, program, water, Technology, parks, Development, technology, Public Works, public works, information technology, Information Technology, and community development

CITY OF CAYCE, SOUTH CAROLINA

STATEMENT OF ACTIVITIES

YEAR ENDED JUNE 30,2019 Pro(J ram Revenue Operating Capital Fees for Grants and Grants and Expenses Services Contributions Contributions (432,879) (67,575) (86,242)
Tagged Passions:impact fee, grant, and services

(7,434,457) 677,456 378,112 (1,365,137) 752,949 24.630 (1.334,661) 47.871 2.465

(889.747) 1.036 27,000 75,413 (262.379) (1,389.879) (274.356) (13,537,312) 1,479,312 407.577 100.043

(18,215,285) 18.442.059 2,701,677 (18.215.285) 18,442,059 2.701,677

(31, 752,597) 19,921,371 407,577 2.801,720 General Revenue General Revenue: Property taxes Accommodation and hospitality ta-xes State shared and unallocated intergovernmental (unrestricted) Business licenses. ta-xes, and penalties Unrestricted invesunent earnings Gain on sale of property and other Total general revenue Changes in net position

Tagged Passions:business, sale, taxes, Taxes, property, license, intergovernmental, business license, and property tax

Net position- beginning of year Net position- end of year

See accompanying notes to financial statements. Net (Expense) Revenue and Changes in Net position Business- Governmental type Activities Activities Totals (432,879) (432.879) (67,575) (67,575) (86,242) (86,242) (6.378.889) (6.378,889) (587.558) (587,558) (1,284,325) (1,284.325) (786,298) (786,298) (262.379) (262.379) (1,389.879) (1,389,879) (274.356) (274.356) (11,550,380) (11,550.380) 2.928.451 2.928.451 2.928.451 2.928.451 (11.550.380) 2.928.451 (8.621,929) 4,815,538 4,815.538 1.272,104 1.272.104 480.101 480.101 4.893.838 4.893.838

Tagged Passions:business, finance, and financial report

25.296 30.910 56,206 139,001 ],182 140,183

11.625.878 32.092 11.657,970

No additional detail provided

13.966.728 92.328.731 106,295,459 14,042,226 95,289,274 109.331,500

CITY OF CAYCE, SOUTH CAROLINA

BALANCE SHEET GOVERNMENTAL FUNDS Capital Other Total General Projects Govemmental Govemm ental Fund Fund Funds Funds Assets Cash and cash equivalents 6,185,044 - 83,80 I 6,268,845 Receivables, net 694,605 4,466 699,071 Due from other funds 58,049 72 58,121 Inventories 76,405 76,405 Prepaid items I 05,328 105,328 Restricted assets: Cash and cash equivalents 948,466 2,050,326 2,238,591 5,237,383 Bond deposit 47 530 47 530 Total assets 8,067,897 2,050,326 2,374,460 12,492,683 Liabilities and Fund Balances Liabilities: Total liabilities 791 294 I 386 3 344 796 024 Fund balances: Nonspendable in: Inventories and prepaid items 181,733 181,733 Restricted for: Debt service 1,426,238 1,426,238 Tourism and community development 843,192 843,192 Capital projects and redevelopment plan 2,048,940 2,048,940 Law enforcement 17 885 17 885 2,048,940 2287315 4 336 255 Committed for: UST program 25,000 25 000
Tagged Passions:funding, development, capital spending, bond, tourism, public safety, Capital Spending, program, Development, and community development

Assigned for: Christmas in Cayce 6,738 6,738 Congaree Blue Grass Festival 9,737 9,737 Museum 83,801 83,801 HistOty park 948 466 948,466

Tagged Passions:parks and festival

964 941 83 801 I 048 742

Unassigned 6 104 929 6 104 929 Total fund balances 7 276 603 2,048,940 2 371,116 11,696,659 Total liabilities and fund balances 8,067,897 2,050,326 2,374,460 12,492,683 - CONTINUED -

17
CITY OF CAYCE, SOUTH CAROLINA

BALANCE SHEET GOVERNMENTAL FUNDS - CONTINUED-

Tagged Passions:funding

Reconciliation to amounts reported for Governmental Activities in the Statement of Net Position (See Note 13): Total fund balances- Governmental Funds

Capital assets used in governmental activities are not financial resources and therefore, arc not reported in the fund financial statements. Other assets not available to pay for current period expenditures and therefore, not reported in the fund financial statements. Certain deferred outflows related to pensions are not available to pay for current expenditures and , therefore, are not reported in the fund financial statements. Long-term liabilities, including bonds payable, are not due and payable in the current period and therefore are not reported in the fund financial statements: Certain deferred inflows related to pensions are not due and payable in the current period and , therefore, arc not reported in the fund financial statements.
Tagged Passions:funding, finance, retirement, bond, and financial report

Net position, end of year- Governmental Activities

See accompanying notes to financial statements.

Tagged Passions:finance and financial report

18
11,696,659

23,808,847 462,072 3,517,551 (24,899,847) (543,056) 14,042,226

CITY OF CAYCE, SOUTH CAROLINA

STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCES-

GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2019
Tagged Passions:funding

Other Total General Capital Govemmental Govemmental

Fund Project Fund Funds Funds Revenue Property taxes 3,848,870 979,111 4,827,981 Accommodation and hospitality taxes 1,272,104 1,272, I 04 Licenses and permits 4,930,242 4,930,242 Fines and forfeitures 187,075 187,075 State shared revenue 395,772 84,329 480,101 Current services 1,348,045 1,348,045 Grants and other 365,100 65,730 31,515 462,345 Interest income 4,657 19,038 1,601 25,296 Total revenue ... 11 079,761 84,768 2,368,660 13,533,189 Expenditures Current: General government 524,290 524,290 Information technology 62,989 62,989 Finance 69,722 69,722 Public safety 6,961,529 6,961,529 Public works I ,310,604 1,500 1,312,104 Community relations 146,032 146,032 Planning and community development 791,549 363,114 I, 154,663 Parks and museum 832,604 2,346 834,950 Garage 240,244 240,244 Non-departmental and support services (4,087) (4,087) Debt service 155,480 569,063 724,543 Capital outlay 1,569,416 5,100,548 6,669,964 Total expenditures 12,660,372 5,104,394 932,177 18,696,943 Excess (deficiency) of revenue over expenditures (1,580,611) 19,626) 1,436,483 (5,163,754)
Tagged Passions:planning, funding, grant, finance, taxes, Taxes, development, public safety, services, Technology, parks, Development, technology, Public Works, public works, property, license, information technology, property tax, hospitality tax, Information Technology, and community development

Other Financing Sources (Uses) Installment purchase contract 283,556 283,556 Proceeds from sales of assets 40,145 40,145 Transfers in 867,541 16,500 884,041 Transfers (out) (884,041) (884,041)

Total other financing sources (uses) ___l, 191,242 (867,541) 323,701 Net change in fund balances (389,369) (5,019,626) 568,942 ( 4,840,053) Fund balances, beginning of year 7 665,972 7,068,566 ..
Tagged Passions:sale, contract, and purchasing

1,802,174 16,536,712 Fund balances, end of year 7,276,603 2,048,940 2,371,116 11,696,659

-CONTINUED-

19
CITY OF CAYCE, SOUTH CAROLINA

No additional detail provided

STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCES-

GOVERNMENTAL FUNDS -CONTINUED-
Tagged Passions:funding

Reconciliation to amounts reported for Governmental Activities in the Statement of Activities (See Note 13):

Net change in fund balances- Total Governmental Funds (4,840,053) Governmental funds rep01t capital outlays as expenditures. However, in the Statement of Activities the cost of those assets are allocated over their estimated useful lives and reported as depreciation expense. This is the amount by which capital outlays exceeded depreciation in the current period. 5,324,780 The net effect of various miscellaneous transactions involving capital assets (i.e. sales, trade-ins, etc.) is to decrease net position. (I I ,634)
Tagged Passions:funding, sale, and trade

Revenues in the Statement of Activities do not provide current financial resources are reported as revenues in these funds. (12,453)

Tagged Passions:funding and finance

Some expenses reported in the Statement of Activities do not require the use of current financial resources and, therefore, are not rep01ted as expenditures in these funds. (644,975)

The issuance of long-term debt provides current financial resources to governmental funds, while repayment of the principal and interest consumes current financial resources of governmental funds. This amount is the net effect of these differences in the treatment of long-term debt and related items. 259,833

Tagged Passions:funding and finance

Change in net position - Governmental Activities 75,498

See accompanying notes to .financial statements.

Tagged Passions:finance and financial report

20
CITY OF CAYCE, SOUTH CAROLINA

BALANCE SHEET PROPRIETARY FUND Assets and Deferred Outflows Current assets: Cash and cash equivalents Receivables, net: Water and sewer accounts, net Other accounts Note receivable - current portion Prepaid expense Inventories Total current assets

Tagged Passions:sewer, utility, Utility, and water

Non-current assets: Restricted cash and cash equivalents Capital assets not subject to depreciation Capital assets, net of depreciation Note receivable Other assets, net

Total non-current assets Total assets Deferred outflows of resources: Deferred outflows related to other post-employment benefits (OPEB) Deferred outflows related to pension Losses on bond refundings, net

Tagged Passions:retirement, bond, and employment

Total assets and deferred outflows

-CONTINUED-

21
Business-type Activities -

Enteq)l'ise Fund Water and Sewer Utility 3,664,553 2,419,062 51,072 26,197 44,906 225,939 6,431,729 10,616,634 29,682,164 118,279,187 49,506 380,609 159,008, I 00 165,439,829 128,869 1,304,747 566,135 1,999,751 167,439,580

Tagged Passions:business, sewer, utility, Utility, and water

CITY OF CAYCE, SOUTH CAROLINA

BALANCE SHEET PROPRIETARY FUND -CONTINUED- Liabilities, Deferred Inflows and Net Position Current liabilities: Accounts payable Accrued payroll and related taxes Accrued compensated absences- current portion Installment purchase contract payable- current portion Construction contract payable Accrued interest Other liabilities Due to other funds (internal balances) Customer prepayments Current liabilities payable from restricted assets Total current liabilities Long-term (non-current) liabilities: Accrued compensated absences Unearned revenue- future capacity charges and credits Installment purchase contract payable SRF loans payable Revenue bonds payable Net pension liability Total other post-employment benefit (OPEB) liability Total long-term liabilities Total liabilities Deferred inflows of resources: Deferred inflows related to pension Net position: Net investment in capital assets Restricted for: Debt and capital projects Pension and employee benefits Unrestricted (deficit) Total net position Total liabilities, deferred inflows and net position See accompanying notes to financial statements.
Tagged Passions:funding, construction, finance, retirement, taxes, Taxes, capital spending, bond, contract, Capital Spending, employment, purchasing, investment, and financial report

22
Business-type Activities-

Enterpris_e Fund Water and Sewer Utility 190,240 153,485 83,333 337,470 68,268 2,348 1,493 56,510 66,108 4,343,912 5,303,167 87,548 I, 130,698 540,547 48,476,544 9,057,654 6,699,352 571,524 66,563,867 71,867,034 283,272 283,272 87,473,689 8,820,448 501,729 (1,506,592) 95,289,274 167,439,580

Tagged Passions:business, sewer, utility, Utility, and water

CITY OF CAYCE, SOUTH CAROLINA

STATEMENT OF REVENUE, EXPENSES AND CHANGES IN FUND NET POSITION

PROPRIETARY FUND YEAR ENDED JUNE 30,2019 Operating Revenue (pledged as security for loans and revenue bonds) Water: Sales Connection fees
Tagged Passions:impact fee, sale, utility, security, bond, Utility, and water

Sewer: Service charges Connection fees

Septage/grease services: Sales and permits Pretreatment set-up fees Re-connection fees Penalties Miscellaneous income Total operating revenue
Tagged Passions:impact fee, sewer, sale, utility, Utility, and services

Operating Expenses Administrative Utility billing Water treatment plant Water distribution and maintenance Wastewater treatment plant Sewer collection and outfall lines Septage and grease receiving station Non-departmental and support services Depreciation and amortization expense

Total operating expenses Operating income Non-Operating Revenue (Expenses) Interest income Gains from sale, dispoal of equipment Interest expense Amottization of bond refinancing losses Fiscal agent fees
Tagged Passions:impact fee, equipment, sewer, sale, utility, bond, Utility, services, water, and plant

Total non-operating revenue (expenses) Income (loss) before contributions Capital Contributions

No additional detail provided

Capacity charges and other capital contributions

Change in net position Net position, beginning of year Net position, end of year See accompanying notes to financial statements.

Tagged Passions:finance and financial report

23
Business-type Activities -

Enterprise Fund Water and Sewer Utility 5,630,878 105,370 754,003 93,875 30,890 179,711 175 525 18,442,059 697,255 799,786 1,596,206 1,402,646 3,054,456 1,612,901 893,187 1,800,000 4 895 008 16751445 I 690 614 30,910 1,182 (I ,349,059) (I 05,587l (9, 194 (1,431,748) 258,866 2,701,677 2,960,543 92 328 731 95,289,274

Tagged Passions:business, sewer, utility, Utility, and water

CITY OF CAYCE, SOUTH CAROLINA

STATEMENT OF CASH FLOWS

PROPRIETARY FUND YEAR ENDED JUNE 30, 2019 Cash Flows from Operating Activities Cash received from:

Usage fees Tap fees Service and miscellaneous charges

Tagged Passions:impact fee

Cash paid to (for): Employee salaries and related costs Water treatment and distribution costs Sewer treatment and collection costs Septage and grease treatment and disposal costs Other administrative and billing costs Indirect (overhead) and support costs

Net cash provided by (used in) operating activities Cash Flows from Capital and Related Financing Activities Proceeds from sale of capital assets Acquisition and construction of capital assets Interest and fiscal agent fees paid on capital related debt Principal payments on bonds and notes Capacity charges and other capital contributions Net cash provided by (used in) capital and related financing activities Cash Flows from Investing Activities Interest received

Tagged Passions:impact fee, construction, sewer, sale, utility, bond, Utility, and water

Net cash provided by investing activities

Net increase (decrease) in cash and cash equivalents Cash and cash equivalents, beginning of year (of which 16,975,812 is

restricted) Cash and cash equivalents, end of year (of which 10,616,634 is restricted)

-CONTINUED-

24
Business-type Activities-

Enterprise Fund Water and Sewer Utility 17,987,927 109,120 480,001

Tagged Passions:business, sewer, utility, Utility, and water

( 4,380,322) (1,629,323) (2,996,226)

(837, 170) (432,101) (1,800,000 6,501,906

3,510 (8,050,151) (1,255,941) (3,680,0 18)

887,993 (12,094,607 30,910 30,910 (5,561,791) 19,842,978 14,281,187

CITY OF CAYCE, SOUTH CAROLINA

STATEMENT OF CASH FLOWS

PROPRIETARY FUND -CONTINUED- Business-type Activities- Enterprise Fund Water and Sewer Utility Reconciliation of Operating Income to Net Cash Provided by Operating Activities
Tagged Passions:business, sewer, utility, Utility, and water

Operating income Adjustments to reconcile operating income to net cash provided by operations:

Depreciation and amortization expense Changes in certain assets and liabilities: (Increase) decrease in accounts receivable (Increase) decrease in inventmy and prepaid items Increase (decrease) inbond loss refunding deferred outflows Increase (decrease) in accounts payable/accrued liabilities Increase (decrease) in accrued interest Increase (decrease) in amounts due to/from others Increase (decrease) in customer deposits and prepayments Increase (decrease) in unearned contracts Increase (decrease) in total OPEB liability Increase (decrease) in net pension liabilities Increase (decrease) in OPEB related deferred outflows (Increase) decrease in pension related deferred outflows Increase (decrease) in pension related deferred inflows Increase (decrease) in accrued compensated absences 1,690,614 4,895,008

Tagged Passions:retirement and contract

224,347 (105,587)

(49,378) (88,665) (161 ,855) (23,370) 24,113 (274,164) I 0,874 (40,477) 23,262

449,903 (95,981) 23,262

Net cash provided by (used in) operating activities 6,501,906 Supplemental disclosure of non-cash capital and related financing activities Contributed property by developers Amortization of revenue bond refinancing losses Amortization of revenue bond premium/discount Ammtization of contract rights See accompanying notes to financial statements.
Tagged Passions:finance, bond, contract, property, and financial report

25
1,502,843 105,587

14,490 14,097 Assets

CITY OF CAYCE, SOUTH CAROLINA

STATEMENT OF FIDUCIARY NET POSITION

Cash and cash equivalents Total assets Liabilities Amounts due to others Total liabilities See accompanying notes to financial statements.
Tagged Passions:finance and financial report

26
Agency Funds

169,091 169,091 169,091 169,091

Tagged Passions:funding

CITY OF CAYCE, SOUTH CAROLINA

CITY OF CAYCE, SOUTH CAROLINA

NOTES TO FINANCIAL STATEMENTS

Tagged Passions:finance and financial report

1.
Summary of Significant Accounting Policies

The City of Cayce, South Carolina (the City ) was incorporated September 7, 1914, under the laws of the State of South Carolina for the incorporation of municipal governments and as amended by Act 283 of the 1975 Code (Home Rule City Act). The City operates under a Council-Manager form of government and provides the following services as authorized by its charter: public safety (police and fire), streets, sanitation, health, culture-recreation, public improvements, planning and zoning and general administrative services. The financial statements of the City have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP) as applied to government units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The more significant of the government's accounting policies are described below.

Tagged Passions:planning, health, finance, council, solid waste, public safety, zoning, services, manager, financial report, and recreation

A.
Reporting Entity

Using the criteria ofGASB Statement No. 14, The Financial Reporting Entity, as amended by GASB Statement No. 39, Determining Whether Certain Organizations are Component Units, and GASB Statement No. 61, The Financial Reporting Entity Omnibus, the basic financial statements of the County present the reporting entity that consists of the primary government and those legally separate organizations for which the elected officials of the primmy government is financially accountable and for which the nature and significance of their relationship with the primary government are such that exclusion could cause, in management's judgment, the City's financial statements to be misleading or incomplete. Financial accountability is defined as appointment of a voting majority of the separate organization's board and either a) the ability to impose will by the primmy government, or b) the possibility that the separate organization will provide a financial benefit to or impose a financial bmden on the primary government. Blended component units are separate entities that are, substantially, part of the primary government's operations and are combined with financial data of the primary government. Discretely presented component units, on the other hand, are reported in separate columns in the Government -wide financial statements to emphasize that they are legally separate from the operations of the primary government. The City maintains the Cayce Beautification Foundation and the Cayce Public Safety Foundation, both organized to enhance the City of Cayce in partnership with local residents, businesses and law enforcement. These entities are not material to the City, and therefore, no discretely presented component units arc presented for the year ended June 30,2019.

Tagged Passions:business, finance, appointments, voting, public safety, financial report, and accountability

27
CITY OF CAYCE, SOUTH CAROLINA

No additional detail provided

NOTES TO FINANCIAL STATEMENTS

-CONTINUED-
Tagged Passions:finance and financial report

1.
Summary of Significant Accounting Policies (Continued) B. Basis of Presentation

Govemment-Wide and Fund Financial Statements Government-wide Financial Statements- The Government-wide financial statements consist of a Statement of Net Position and a Statement of Activities and reports information on all of the non- fiduciary activities of the government as a whole. Separate columns are used to distinguish between the City's governmental and business-type activities. Governmental activities are generally those activities financed by taxes, intergovernmental revenues, and other non-exchange revenues. These activities are usually reported in Governmental Funds. Business-type activities are those activities which are financed in whole or in part by user fees charged to external parties for goods and services. These activities are usually reported in Enterprise Funds. The primary government is reported separately from certain legally separate component units for which the primaty government is financially accountable. The Statement of Net Position reports all financial and capitalresomces of the City and repmts the difference between assets and deferred outflows less liabilities and deferred inflows as net position not fund balance or equity. The Statement of Activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues and reflects the net (expenses) revenue of the City's individual functions before applying 'general' revenues.

Tagged Passions:impact fee, funding, business, finance, taxes, Taxes, services, program, financial report, and intergovernmental

Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues are derived directly from the program itself or from patties outside the reporting government's taxpayers or citizenry, as a whole, and thus reduce the net cost of the function to be financed from the government's general revenues. They include (l) charges to customers or applicants who pmchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment, (2) operating grants and contributions, and (3) capital grants and contributions, including special assessments that are restricted to meeting the operational or capital requirements of a pmticular function or segment. Internally dedicated resomces are repmted as general revenues rather than as program revenues. All revenues are 'general' revenues unless they are required to be reported as program revenues.

No additional detail provided

Tagged Passions:grant, finance, services, and program

Fund Financial Statements - Separate financial statements are provided for governmental funds, proprietmy funds, and fiduciary funds, even though the latter are excluded from the Government- wide financial statements. The focus of governmental and proprietary fund financial statements is on 'major' funds. Major individual governmental funds and major individual proprietary funds are reported as separate columns in the fund financial statements, with 'non-major' funds being aggregated and displayed in a single column.

The City reports the General Fund and the Capital Projects Fund as the major governmental funds and the Water and Sewer Utility Fund as the major proprietary fund. A schedule of non-major funds is presented separately as pmt of Other Financial Information. Because of the basis of accounting and reporting differences, summary reconciliations to the Government-wide financial statements are presented at the end of each applicable fund financial statement.

Tagged Passions:funding, finance, sewer, utility, capital spending, Utility, Capital Spending, water, and financial report

28
CITY OF CAYCE, SOUTH CAROLINA

No additional detail provided

NOTES TO FINANCIAL STATEMENTS

-CONTINUED-
Tagged Passions:finance and financial report

1.
Summary of Significant Accounting Policies (Continued) B. Basis of Presentation (Continued) Governmental Funds

General Fund- The General Fund is the general operating fund of the City. It is used to account for all financial resources except those required to be accounted for in another fund.

Tagged Passions:funding and finance

Special Revenue Funds- The Special Revenue Fund is used to account for the proceeds of specific revenue sources (other than special assessments, expendable trusts, or major capital projects) that are legally (or donor) restricted to expenditures for specified pmposes other than debt service or capital projects. The City maintains special revenue funds for continuing grant programs for law enforcement; state restricted funds for accommodation taxes and alcohol permits; restricted hospitality taxes; plus Cayce Museum Fund.

No additional detail provided

Tagged Passions:alcohol, funding, grant, taxes, Taxes, capital spending, Capital Spending, program, and hospitality tax

Capital Projects Fund - The Capital Projects Fund is used to account for the acquisition and construction of major capital facilities and other capital assets other than those financed by the proprietmy fund. The City maintains this fund for its resomces and activities in the tax increment financing (TIF) district.

No additional detail provided

Tagged Passions:construction, finance, TIF, taxes, Taxes, capital spending, and Capital Spending

Debt Service Fund - The Debt Service Fund is used to account for the accumulation of financial resomces for the payment of interest and principal on certain general long-term debt of the City, other than debt service payments financed by proprietaty fund types. The City maintains this fund for the resources of taxes collected in the TIF district used for retirement of long-term debt.

ProprielmJ' Funds Enterprise Funds- The Enterprise Fund is used to account for operations (a) that are financed and operated in a manner similar to private business enterprises- where the intent of the governing body is that the cost (expenses, including depreciation) of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges; or (b) where the governing body has decided that periodic determination of revenue earned, expenses incmred, and/or net income is appropriate for capital maintenance, public policy, management control, accountability, or other purposes. The City operates a combined Water and Sewer Utility Enterprise Fund. Fiducial)' Funds

Tagged Passions:funding, business, finance, TIF, sewer, retirement, taxes, Taxes, utility, Utility, seniors, services, water, policy, and accountability

All of the City's fiduciary activities are reported in a separate Statement of Fiducimy Net Position and (if applicable) a Statement of Changes in Fiduciaty Net Position.

Agency Funds - The Agency Fund is used to account for assets held by the City as an agent for individuals, private organizations, other governments, and/or other funds. At June 30, 2019, these included Police Fund and Firemen's Fund. Agency Funds are custodial in nature (assets equal liabilities) and do not involve the measmement of results of operations. These activities have been excluded from the City's Government-wide financial statements because the City cannot use those assets to finance its operations.
Tagged Passions:funding, finance, public safety, and financial report

29
CITY OF CAYCE, SOUTH CAROLINA

No additional detail provided

NOTES TO FINANCIAL STATEMENTS

-CONTINUED -
Tagged Passions:finance and financial report

1.
Summary of Significant Accounting l'olicies (Continued) C. Measurement Focus and Basis of Accounting

Basis of accounting refers to when revenues and expenditures are recognized in the accounts and reported in the financial statements. Basis of accounting is a conceptual description of the timing of the accounting measurements made. The Government-wide and Proprietary Fund financial statements use the economic resources measurement focus and the accrual basis of accounting, in accordance with GASB Statement No. 34. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the grantor have been met. As a general rule, the effect of interfund activity (i.e. advances or short-term loans) has been eliminated from the Government-wide financial statements, except for amounts due between the City's governmental activities and business-type activities. Governmental Fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under the modified accrual basis concept, revenues susceptible to accrual (e.g. property taxes, franchise taxes, state shared and intergovernmental revenues) are recognized when they become measurable (estimable as to the net amount to be collected) and available as current assets. Snch revenues are considered to be available when they are collected within the current period or soon enough thereafter (not exceeding 60 days) to pay liabilities of the current period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due. Proprietmy Fund statements reflect net position and revenues, expenses and changes in net position using the economic resources measurement focus and the accrual basis of accounting. Under the accrual basis concept, revenues are recognized when earned and expenses are recognized when incurred. Proprietary Funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. Operating expenses for enterprise funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are repmted as non-operating revenues and expenses. When restricted, committed, and/or assigned resources are available for use, it is the government's policy to use restricted resources first, then committed resources, then assigned resources, then unrestricted resources as they are needed.

Tagged Passions:funding, grant, recognition, business, finance, sale, taxes, Taxes, services, property, policy, financial report, intergovernmental, payday lending, and property tax

30
CITY OF CAYCE, SOUTH CAROLINA

No additional detail provided

NOTES TO FINANCIAL STATEMENTS

-CONTINUED-
Tagged Passions:finance and financial report

1.
Summary of Significant Accounting Policies (Continued)

No additional detail provided

D.
Budgets and Budgetary Accounting

No additional detail provided

Tagged Passions:budget

Budgets and Encumbrances - Generally, budgets are adopted on a basis consistent with generally accepted accounting principles. A legal operating budget is prepared annually for the General Fund and Water and Sewer Utility Fund. Informal budgetary controls are maintained for other funds.

The City Manager is authorized to administer the budget and transfer amounts within and between depmtments and funds as necessary and designate continuing projects from fund balances or additional unbudgeted revenue and transfers. Subsequent expenditures (expenses) approved by Council shall automatically carry amendments to fund appropriation where applicable. The General Fund operated under a final expenditure budget totaling 14,696,302, ( 12,896,302 plus 1,800,000 Utility Fund indirect costs and overhead allocated to the General Fund departments). Final budgeted revenue totaled 11,280,673 and other financing sources (uses) totaled 1,205,629, leaving a deficit net change in fund balance of 410,000 which was covered by an appropriation of fund balance. As further described in the Required Supplementary Information , a budgetary comparison schedule for the General Fund is provided. The Water and Sewer Utility Fund operated under a budget totaling 15,444,763 (including operation and maintenance, capital improvements, debt service principal amounts and coverages). Actual operating expenses totaled 16,751,445 (including a charge of 4,895,008 for depreciation and amortization).

Tagged Passions:funding, council, legal, sewer, budget, utility, capital spending, Utility, Capital Spending, water, administrator, and manager

Encumbrances represent outstanding purchase orders or commitments related to unperformed contracts for goods or services. Encumbrance accounting- under which purchase orders, contracts and other commitments for the expenditure of resources are recorded to reserve that portion of the applicable budgeted appropriation - is utilized in the governmental funds. There were no material encumbrances at June 30,2019.

Tagged Passions:funding, budget, contract, services, and purchasing

E.
Assets, Liabilities, Fund Equity, Revenue, Expenditures and Expenses

Cash and Cash Equivalents and Investments Cash includes amounts held in demand deposits. For purpose of the statement of cash flows, the City considers all savings and short-term investments purchased with maturities of three months or less to be cash equivalents. State statutes authorize the City to invest in obligations of the U. S. Treasury, commercial paper, corporate bonds and repurchase agreements. Investments are reported at fair value. Shmt-Term Interfund Receivables/Payables During the course of operations, numerous transactions result in loans or advances between individual funds. Interfund loans outstanding at year-end are recorded as Interfund Receivables/Payables and are expected to be paid within one year. The lending fund repmts amounts 'due from other funds', while the borrowing fund reports amounts 'due to other funds'. These interfund receivables and payables are classified as internal balances on the Government-wide Statement of Net Position and have been eliminated. The City considers all interfund receivables, net of any payables to be shmt-term. Advances to/from other funds (if any) represent long-term interfund loans receivable and payable.

Tagged Passions:funding, bond, purchasing, investment, and commercial

31
CITY OF CAYCE, SOUTH CAROLINA

NOTES TO FINANCIAL STATEMENTS

-CONTINUED-
Tagged Passions:finance and financial report

1.
Summary of Significant Accounting l'olicies (Continued) E. Assets, Liabilities, Fund Equity, Revenue, Expenditures and Expenses (Continued)

No additional detail provided

Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable includes accounts due from other governments and is stated net of their allowance for uncollectible accounts.

Inventmy and Prepaid Items Inventory is valued at cost or estimated historical cost on a first-in, first-out (FIFO) basis. Inventory consists of expendable supplies of the garage and water/wastewater maintenance, held for consumption. Repmted inventory expenditures or expenses and prepaid items are recognized when consumed. Additionally, certain payments to vendors reflect costs for services applicable to future periods and are reported as prepaid items.

Tagged Passions:recognition, sewer, historical, utility, Utility, services, and water

Restricted Assets Restricted accounts include monies or other resomces, the use of which is restricted by legal or contractual requirements. In the Enterprise Fund restricted assets arise from certain bond and contract ordinances.

Tagged Passions:ordinance, legal, bond, and contract

Other Assets Other assets consists of purchases of intangible assets, or 'contractual rights' to use capital asset resources. The Business-type Activities contract rights result from the pmchase of expanded wastewater collection lines owned by a third-patty (Red Bank Line) where the City uses the additional line capacity. The purchase price (cost) totaling 563,864 is being amortized over the life of the contract (40 years). Amortization expense for the year ended June 30,2019 totaled 14,096. The Governmental Activities rights result from the purchase and cost contribution to Lexington County to construct a new animal services/shelter services and to provide the City future services. The pmchase price (cost) totaling 100,000 and is to be ammtized over the life of the contract (20 years). Amortization expense incurred for fiscal year totaling 5,000.

Tagged Passions:business, sewer, contract, services, animal control, and purchasing

Capital Assets and Depreciation Capital assets, which include land, buildings, improvements, machinmy and equipment, and infrastructure assets, are reported in the applicable governmental or business-type activities columns in the Government-wide financial statements. Capital assets of the City that are not specifically related to activities reported in proprietmy or fiduciary funds have been repmted as assets in the governmental funds column of the Government-wide financial statement. Capital assets are defined by the City as those assets with an initial, individual cost of more than 5,000 and an estimated useful life in excess of two years.

All capital assets are valued at historical cost if purchased or constructed, or estimated historical cost if actual historical cost is not available. Donated capital assets are valued at their estimated acquisition value on the date donated. The costs of normal repairs and maintenance that do not add to the value of the asset or materially extend asset lives are not capitalized.

Tagged Passions:Homebuilder, funding, business, equipment, finance, historical, purchasing, and financial report

32
CITY OF CAYCE, SOUTH CAROLINA

NOTES TO FINANCIAL STATEMENTS

-CONTINUED-
Tagged Passions:finance and financial report

1.
Summary of Significant Accounting Policies (Continued) E. Assets, Liabilities, Fund Equity, Revenue, Expenditures and Expenses (Continued)

No additional detail provided

Capital Assets and Depreciation (Continued) Public domains (rights-of-way and easements) have been capitalized using actual and estimated historical costs of such assets that were acquired by the City. The City owns .98 mile of paved subdivision streets at June 30, 2019. However, the City is not responsible for maintenance or reconstruction costs associated with the roads.

No additional detail provided

Tagged Passions:streets, historical, subdivision, and easement

Depreciation of all exhaustible capital assets has been provided based on the estimated useful lives of the class of assets, or individual assets using the straight line method with service lives as follows: Buildings- 15 to 40 years; Improvements- I 0 to 30 years; Machinery and equipment- 3 to 20 years; Water and sewer systems- I 0 to 50 years.

Tagged Passions:Homebuilder, equipment, sewer, utility, Utility, and water

Capitalization of Interest Interest costs incurred during the construction phase of business-type capital assets are reflected in the capitalized value of the asset constructed, net of interest earned on the invested proceeds over the same period. The City plans to implement GASB Statement No. 89, Accounting for Interest Cost Incurred B fore the End of a Construction PeriO(/, beginning in the fiscal year 2020-2021 reporting period when such interest costs will no longer be capitalized.

Long-term Obligations In the Government-wide financial statements, and the Proprietmy 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 proprietmy fund type Statement of Net Position. Long-term debt represents unmatured principal of general obligation and revenue bond indebtedness, and outstanding portions due on long-term contracts. These obligations are reported net of bond premiums and discounts, which are amortized over the life of the related bond issue using the straight- line method. Other long-term obligations represent outstanding net present value portions due on capital lease obligations, and long-term portions of claims or judgments. Liabilities arising from interfund activities do not constitute general long-term liabilities. In the Governmental Fund financial statements, bond premium and discounts, as well as bond issuance, costs are recognized as expenditures of the current period. The face amount of the debt issued, along with any bond premium and discounts, is repmted as Other Financing Sources. Compensated Absences (Accrued Vacation and Sick Leave) City employees are entitled to accme and carry forward at fiscal year-end accumulated unused days of annual vacation leave and sick leave. Typically, employees consume newly-earned increments of leave in future periods. Effective July l, 1994, accumulated annual and sick leave is capped at 400 hours and 720 homs, respectively, per employee. Upon termination of employment, employees are entitled to be paid at current salary levels for accumulated unused annual vacation leave. Prior to July I, 1994, the City's policy for employees receiving compensation for unused sick leave upon termination was as follows: 15 years of service= 25 ; 20 years of service= 50 ; 25 years of service = 75 ; 30 years of service= l 00 .
Tagged Passions:compensation, recognition, construction, business, finance, leasing, bond, contract, employment, policy, and financial report

33
CITY OF CAYCE, SOUTH CAROLINA

NOTES TO FINANCIAL STATEMENTS

-CONTINUED-
Tagged Passions:finance and financial report

1.
Summary of Significant Accounting Policies (Continued) E. Assets, Liabilities, Fuud Equity, Revenue, Expenditures and Expenses (Continued)

Compensated Absences (Accrued Vacation and Sick Leave (Continued) In the Government-wide and Proprietmy Fund financial statements, vacation pay is accrued when incurred and reported as a current and long-term liability. In the Governmental Funds, expenditures and liabilities related to these obligations are recognized when they mature (become due). Vacation pay that is expected to be liquidated, for example, as a result of employee resignations and retirements, with expendable available financial resources is repmted as an expenditure and a fund liability in the General Fund, when applicable. Unearned Revenue In the Government-wide and Proprietary financial statements, certain assets are not recognized in connection with a transaction before the earnings process is complete. These assets are generally offset by a corresponding liability entitled unearned revenue and represent various deposits. Unearned revenue in the Governmental Fund financial statements are not yet available to finance expenditures for the current fiscal.

Tagged Passions:funding, recognition, finance, retirement, seniors, and financial report

Contract Obligation Under an intergovernmental agreement, the City is obligated to provide financial credit to a wastewater treatment purchaser of 1 ,950,000, which resulted fi om a prior-year receipt of wastewater capacity payments. The City applies the credit against future contract charges and services. At June 30,2019, the current credit balance outstanding equals 1,127,508.

Pensions For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the South Carolina Retirement System (SCRS) and South Carolina Police Officers Retirement System (PORS) and additional to/deductions from the plans' fiduciary net position have been determined on the same basis as they are repotted by the related plan. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.
Tagged Passions:recognition, finance, sewer, retirement, contract, public safety, seniors, services, investment, and intergovernmental

Total OPEB Liability For the purposes of measuring the Total OPEB Liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the City of Cayce Postretirement Health Plan and additions to/deductions from the plan's fiduciary net position have been determined on the basis of an actuarial repmt for the plan. The City does not have a separate Trust for the plan and the plan has no plan assets. For this purpose benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. The Total OPEB Liability is the pmtion of the actuarial present value of projected benefit payments that is attributed to past periods of employee service. Changes in the Total OPEB Liability that have not been included in OPEB expense are reported as deferred outflows or deferred inflows of resources related to OPEB.

No additional detail provided

Tagged Passions:health and recognition

34
CITY OF CAYCE, SOUTH CAROLINA

NOTES TO FINANCIAL STATEMENTS

-CONTINUED-
Tagged Passions:finance and financial report

1.
Summary of Significant Accounting Policies (Continued) E. Assets, Liabilities, Fund Equity, Revenue, Expenditures and Expenses (Continued)

Total OPEB Liability (continued) The City's valuation method is the Enlly Age Actuarial Cost Method under which the actuarial present value of the projected benefits of each individual included in an actuarial valuation is allocated on a level basis over the earnings or service of the individual between enlly age and assumed exit age(s).

Net Position and Fund Balances In the Government-wide financial statements, the difference between the City's total assets and deferred inflows, less total liabilities and deferred outflows represents net position. Net position for both the governmental and proprietary fund types displays three components - net investment in capital assets; restricted (distinguished between major categories of restrictions); and unrestricted. Unrestricted net position represents the assets available for future operations. In the Fund financial statements, governmental funds are repmted in classifications that comprise a hierarchy based primarily on the extent to which the government is bound to honor the constraints on the specific purposes for which amounts in those funds can be spent. Nonspendable fund balances include those amounts that cannot be spent because they are either not in a spendable form or legally or contractually required to be maintained intact.

Restricted fund include those amounts that are legally restricted by outside parties, laws, governments, or enabling legislation for use for a specific purpose. Committed fund balances are amounts that can only be used for specific purposes due to constraints imposed by formal action of the City Council which is the City's highest level of decision making authority. A formal action by Council, typically an ordinance, would be required to rescind a commitment. Assignments of fund balance present management's intent, but are neither restricted nor committed. Due to its form of government (Council-Manager), the City Manager and/or through the annual budget, is authorized to assign amounts to a specific purpose. Unassigned fund balance is the residual classification for the General Fund, or in other governmental funds if expenditures incurred for specific purposes exceed the amounts restricted, committed, and/or assigned to those purposed. When other governmental funds have deficit fund balances, such deficits, after reducing any assigned, committed or restricted balances, are reported as negative unassigned fund balances. In governmental funds, other than the General Fund it is not appropriate to report a positive unassigned fund balance.

Tagged Passions:funding, ordinance, finance, council, budget, investment, administrator, manager, and financial report

Property Taxes The City assesses and levies property taxes in accordance with applicable laws of the State of South Carolina. Real propetty and personal propetty of evety description owned and used in the City, except that which is exempt from taxation under the Constitution and Laws of the State, is subject to taxation. An annual ordinance establishing the millage rate associated with the levy is adopted each year as a part of the budget adoption process.

Tagged Passions:ordinance, budget, taxes, Taxes, property, and property tax

35
CITY OF CAYCE, SOUTH CAROLINA

No additional detail provided

NOTES TO FINANCIAL STATEMENTS

-CONTINUED-
Tagged Passions:finance and financial report

1.
Summary of Significant Accounting I>oJicics (Continued)

No additional detail provided

E.
Assets, Liabilities, Fund Equity, Revenue, Expenditures and Expenses (Continued)

Property Taxes (continued) Real property and all personal property other than vehicles are assessed for property tax purposes as of December 31 of each year. The basis for value of taxable property within the City is taken fi om the records of the Lexington County Assessor or the Richland County Assessor. Taxes are levied on July I with the passage of the fiscal year budget and millage ordinance, billed in October, and are due by January 15 in the year following their levy. A penalty of3 is added to the tax bill on January 16; with an additional? added on February 2; and an additional5 to the tax bill on March 17. New vehicle property taxes are assessed and levied within 120 days of the registration date of the vehicle and payment is due upon receipt of the property tax notice. Other vehicle property taxes are assessed and levied in the month the vehicle is scheduled for license renewal with the South Carolina Depmtment of Transportation and payment is due before the end of the month of the scheduled renewal. For Government-wide financial statements, prope1ty taxes are recognized as revenue in the year for which they are levied. For Government Fund financial statements, City propmty tax revenues are recognized for the budget period to which they apply when they become measurable and available. Delinquent and unpaid prope1ty taxes are reported as receivables, less amounts estimated to be uncollectible. Program and General Revenue The City charges public fees for building permits and inspections, and admission fees for certain recreational activities. These fees as well as fines for traffic violations and grant revenues are recorded as program revenue in the Statement of Activities. General revenues repmted by the City include property taxes, state-shared taxes, business licenses (which are appropriately not classified as program revenue 'fees for services' due to their non-matching characteristics) and other government imposed non-exchange fees (e.g. franchise fees, which are general revenue fees-in-lieu of business licenses). Interfund Activities Transfers between governmental and business-type activities on the Government-wide statements are reported in the same manner as general revenues. Exchange transactions between funds are reported as revenues in the seller funds and as expenditure/expenses in the purchaser funds. Flows of cash or goods from one fund to another without the requirement for repayment are reported as interfund transfers. Interfund transfers are repmted as other financing sources/uses in governmental funds and after non-operating revenues/expenses in proprietary funds. Repayments from funds responsible for particular expenditures/expenses to the funds that initially paid for them are not presented on the financial statements.

Tagged Passions:Homebuilder, impact fee, funding, grant, ordinance, recognition, business, finance, budget, taxes, Taxes, transportation, services, program, property, license, financial report, penalty, business license, traffic, property tax, and recreation

36
CITY OF CAYCE, SOUTH CAROLINA

No additional detail provided

NOTES TO FINANCIAL STATEMENTS

-CONTINUED-
Tagged Passions:finance and financial report

1.
Summary of Significant Accounting l'olicies (Continued) E. Assets, Liabilities, FuJH Equity, Revenue, Expenditures and Expenses (Continued)

Deferred Inflows/Outflows of Resources Pursuant to GASB Concepts Statement No. 4, deferred outflow of resources is a consumption of net position (assets minus liabilities) by the government that is applicable to a future period, while an 'asset' is a resource with present service capacity that the government presently controls. A deferred inflow of resources is an acquisition of net position (assets minus liabilities) by the government that is applicable to a future repmting period, while a 'liability' is a present obligation to sacrifice resources that the government has little or no discretion to avoid. Deferred outflows and inflows of resources are reported separate from assets and liabilities, respectively, in the Statement of Net Position. At June 30, 2019, the City reported 'deferred outflows of resources' consisting of debt refunding losses (resulting from the difference between the new refunding debt (reacquisition price) and the net canying amount of the old refunded debt), pension related, and OPEB related outflows. The debt funding losses amount is being amortized over the remaining life of the old debt or the life of the new debt, whichever is shorter. The City reported 'deferred inflows of resources' related to pensions at June 30,2019.

Tagged Passions:funding and retirement

Comparative Data and Reclassifications Comparative data for the prior year has been presented in selected sections of the accompanying financial statements in order to provide an understanding of changes in the City's financial position and operations. Also, certain amounts presented in the prior year data have been reclassified in order to be consistent with the current year's presentation.

No additional detail provided

Tagged Passions:finance and financial report

Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Estimates are used to determine depreciation expense, and the allowance for doubtful accounts among other accounts. Actual results could differ from those estimates.

Tagged Passions:finance and financial report

37
2.

No additional detail provided

CITY OF CAYCE, SOUTH CAROLINA

NOTES TO FINANCIAL STATEMENTS

-CONTINUED- Deposits and Investments
Tagged Passions:finance, investment, and financial report

As of June 30, 2019, the City had the following cash and investment balances:

Tagged Passions:investment

Cash on hand 1,755 Carrying amount of deposits 23,020,009 Carrying amount of investments 1,501,279 Funds held in trust by State 1,480,993 Total 26,004,036

Statement of Net Position balances: Cash and cash equivalents 9,933,398 Cash and cash equivalents - restricted 15,854,017 Bond deposits 47,530 Cash and cash equivalents- fiducimy 169,091 Investments are categorized as follows: Money Market Funds 1,501,279
Tagged Passions:funding, market, bond, and investment

Deposits Custodial credit risk of deposits is the risk that in the event of a bank failure, the City's deposits may not be returned to it. The City does not have a deposit policy for custodial credit risk. At June 30, 2019, the carrying amount of the City's cash deposits with financial institutions was 23,020,009 and the financial institution's balances totaled 25,016,565. Ofthis balance, 2,006,780 was covered by federal depository insurance and the remaining balance was covered by collateral held by the financial institutions' trust depm1ments in the City's name. The City's cash on hand at June 30, 2019, amounted to 1,755. Accordingly, the City was not exposed to custodial credit risk.

Tagged Passions:finance, risk, events, insurance, and policy

38
CITY OF CAYCE, SOUTH CAROLINA

No additional detail provided

NOTES TO FINANCIAL STATEMENTS

-CONTINUED-
Tagged Passions:finance and financial report

2.
Deposits and Investments (Continued) Investments Interest Rate Risk. The City does not have a formal investment policy that limits investment maturities as a means of managing its exposure to fair value losses arising from increasing interest rates.

No additional detail provided

Tagged Passions:risk, investment, policy, and rates

As of June 30, 2019, the City had the following investments subject to interest rate risk:

Fair Value
Tagged Passions:risk and investment

Money Market Funds 1,501,279

Maturity 8 days weighted
Tagged Passions:funding and market

average of portfolios

Credit Risk. State statute authorizes the City to invest in obligations of the United States and agencies thereof; general obligations of the State of South Carolina or any of its political units provided such obligations are rated as an A or better by Moody's Investors Service, Inc. and Standard and Poor's Corporation or their respective successors; interest bearing accounts in savings and loan associations to the extent that the same are insured by an agency of the Federal government; certificates of deposit where the certificates are collaterally secured by securities of the type described above, held by a third patty as escrow agent or custodian, of a market value not less than the amount of the certificates of deposit so secured, including interest, provided, however, such collateral shall not be required to the extent the same are insured by an agency of the United States Government; or deposit accounts with banking institutions insured and secured in the same manner. The statutes provide that all authorized investments shall have maturities consistent with the time or times when the invested monies will be needed in cash. Statutes also allow the State Treasurer to assist local governments in investing funds. The City is under no contractual agreements which restrict investment alternatives. The City has no investment policy that would further limit its investment choices other than its compliance with State Law. The Money Market Funds were rated AAA by Moody's Investors Service December 1998 and AAA by Standard Poors and Fitch Ratings in March 1999.
Tagged Passions:funding, market, risk, investment, Treasurer, compliance, TREASURER, policy, and poverty

39
CITY OF CAYCE, SOUTH CAROLINA

No additional detail provided

NOTES TO FINANCIAL STATEMENTS

-CONTINUED-
Tagged Passions:finance and financial report

2.
Deposits and Investments (Continued) Investments (Continued) Custodial credit risk. Custodial credit risk of investments 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. Investment balances were covered by collateral held by the financial institution's trust depattment in the City's name. The City does not have an investment policy for custodial credit risk. As of June 30, 2019, the City was not exposed to custodial credit risk.

No additional detail provided

Tagged Passions:finance, risk, events, investment, and policy

Concentration of Credit Risk. The City places no limit on the amount it may invest in any one issuer. More than 5 of the City's investments are in money market funds. These investments are 100 of the City's total investments.

Tagged Passions:funding, market, risk, and investment

3.
Receivables

No additional detail provided

Receivables at June 30,2019, including the applicable allowances for uncollectible accounts, are as follows:

Governmental Business-type Activities Activities Property taxes 1,785,708 Sanitation and fire hydrant fees 62,499 Water and sewer accounts 2,454,062 Franchise fees 40,138 E-911 9,208 Grants receivable (federal and state) 156,790 Accommodations taxes 54,408 Other 218,31L_ 51,072 Gross receivables 2,327,093 2,505,134 Less, allowance for uncollectible I ,245,950 (35,000 Net total receivables 1,081,143 2,470,134
Tagged Passions:impact fee, grant, business, sewer, 911, accommodations tax, taxes, Taxes, utility, solid waste, Utility, water, property, and property tax

During 2018, the City executed a long term note receivable with a developer. The note was for 106,875 in capacity fees. It is payable monthly in the amount of 2,227 with final payment due March 21,2022. At June 30,2019, the balance was 75,703.

Tagged Passions:impact fee

40
CITY OF CAYCE, SOUTH CAROLINA

No additional detail provided

NOTES TO FINANCIAL STATEMENTS

-CONTINUED-
Tagged Passions:finance and financial report

4.
Due to/from Other Funds (Intemal Balances)

No additional detail provided

Tagged Passions:funding

5.
The Governmental and Business-type short-term interfund receivables and payables at June 30, 2019, were as follows:

Interfund lnterfund Receivable Payable General Fund 58,049 Accommodations Tax Fund 72 Hospitality Tax Fund 72 1,539 Debt Service Fund Water and Sewer Fund 56,510 58,121 58,121 Net internal balances shown on the Statement of Net Position between Governmental and Business- type Activities totaled 56,510 at June 30, 2019. Capital Assets A summary of the changes in the City's capital assets during the year ended June 30, 2019, are as follows:

Tagged Passions:business, sewer, accommodations tax, taxes, Taxes, utility, Utility, water, and hospitality tax

A.
Governmental Activities: Balance Balance June 30, June 30,

No additional detail provided

2018 Additions Retirements Transfers 2019 Capital assets not being depreciated:

Land and rights-of-way 8,857,007 (1,018,179) 7,838,828 Construction in progress 1,253,346 5,478,351 (247,188) 6,484,513 Total capital assets not being depreciated 10,110,353 5,478,351 (1,265,364) 14,323,341
Tagged Passions:construction, retirement, and seniors

Capital assets being depreciated: Land improvements 8,510,589 1,265,363 9,775,952 Buildings and improvements 2,370,842 51,999 2,422,841 Furniture, vehicles, equipment 9,217,499 1,184,302 (229,896) 10,171,905

Totals capital assets being depreciated 20,098,930 1,236,301 (229,896) 1,265,363 22,370,698
Tagged Passions:Homebuilder and equipment

Less, accumulated depreciation for: Land improvements (3,695, 123) (570,828) ( 4,265,951) Buildings and improvements (I ,354,780) (90, 150) (I ,444,930) Furniture, vehicles, equipment (6,663,672) (728,901) 218,262 (7,174,311)

Tagged Passions:Homebuilder and equipment

Total accumulated depreciation (11,713,575) (I ,389,879) 218,262 (12,885,192)

No additional detail provided

Total capital assets being depreciated, net 8,385,355 (153,578) (11,634) 1,265,363 9,485,506 Net capital assets-

Governmental Activities 18,495,708 5,324,773 (11,634) 23,808,847

Depreciation expense totaled 1,389,879 for the year ended June 30,2019.

41
5.

CITY OF CAYCE, SOUTH CAROLINA

NOTES TO FINANCIAL STATEMENTS

-CONTINUED- Capital Assets (Continued) B. Business-Type Activities: Balance June 30, 2018 Additions Retirements Capital assets not being depreciated: Land and rights-of-way 330,568 Construction in progress 25.228,536 5,964,573 Total capital assets not being depreciated 25,559,104 5,964,573 Capital assets being depreciated: Water plant and distribution system 43,489,985 383,621 Wastewater plant and collection system 114,898,500 1,119,221 Septage grease facility 1,532,900 Furniture, vehicles, equipment 7,857 145 368 500 (I 9,630) Total capital assets being depreciated 167,778,530 1,871 342 (19,630) Less, accumulated depreciation for: Water plant and distribution system (18,825,680) (1 ,226,425) Wastewater plant and collection system (24,417,470) (3,009,163) Septage grease facility (212,572) (51,050) Furniture, vehicles, equipment (4,873,236 (594,272) 17,302
Tagged Passions:construction, business, equipment, finance, facility, sewer, retirement, utility, Utility, seniors, water, plant, and financial report

Total accumulated depreciation (48,328,958) (4,880,912) 17,302

No additional detail provided

Total capital assets being depreciated, net 119 449 572 (3,009,568) (2,328)

Net capital assets- Business-type Activities 145,008,676 2,955,005 (2,328)

Tagged Passions:business

Balance June 30,

No additional detail provided


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